-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Seij0Y0iIXtP3dkhAxWQXTc5i9B5TvxM9KP2A+bEjpTp7GhxgWRtCy79DVnKD/0l cP33CAOPo+UJbtg3g3k2FQ== 0000017797-03-000006.txt : 20030908 0000017797-03-000006.hdr.sgml : 20030908 20030908114414 ACCESSION NUMBER: 0000017797-03-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030908 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03382 FILM NUMBER: 03885373 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 8-K 1 pei_8kcpl98-.txt CP&L FORM 8-K, SEPTEMBER 8, 2003 As filed with the Securities and Exchange Commission on September 8, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (date of earliest event reported): September 8, 2003 Commission File Exact name of registrant as specified in its charter, I.R.S. Employer Number state of incorporation, address of principal executive Identification Number offices, and telephone number 1-3382 Carolina Power & Light Company 56-0165465 410 South Wilmington Street Raleigh, North Carolina 27601-1748 Telephone: (919) 546-6411 State of Incorporation: North Carolina
The address of the registrant has not changed since the last report. Item 5. Other Events The purpose of this Form 8-K is to provide certain updated risk factor and recent developments disclosure and to provide as an exhibit the Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends Combined and Ratio of Earnings to Fixed Charges for the twelve months ended June 30, 2003 and 2002, and December 31, 2002, 2001 and 2000. Updated Risk Factor On August 11, 2003, we filed a Form 10-K/A to reclassify approximately $243.7 million from operating activities to investing activities on our consolidated statement of cash flows for the year ended December 31, 2002. Since our net cash flow from operations was reduced by approximately $243.7 million, we are revising the following risk factor previously contained in our Form 10-K for the year ended December 31, 2002. Our business is dependent on our ability to successfully access capital markets. Our inability to access capital may limit our ability to execute our business plan, or pursue improvements and make acquisitions that we may otherwise rely on for future growth. We rely on access to both short-term money markets and long-term capital markets as a significant source of liquidity for capital requirements not satisfied by the cash flow from our operations. Our net cash flow from operations funded approximately 158% of our capital requirements for the year ended December 31, 2002. If we are not able to access capital at competitive rates, our ability to implement our business operations will be adversely affected. We believe that we will maintain sufficient access to these financial markets based upon current credit ratings. However, certain market disruptions or a downgrade of our credit rating may increase our cost of borrowing or adversely affect our ability to access one or more financial markets. Such disruptions could include: o an economic downturn; o a ratings downgrade of Progress Energy, Inc.; o the bankruptcy of an unrelated energy company; o capital market conditions generally; o market prices for electricity; o terrorist attacks or threatened attacks on our facilities or those of unrelated energy companies; or o the overall health of the utility industry. Restrictions on our ability to access financial markets may affect our ability to execute our business plan as scheduled. An inability to access capital may limit our ability to pursue improvements or acquisitions that we may otherwise rely on for future growth. Recent Development South Carolina Easement Litigation On August 21, 2003, we were served as a co-defendant in a purported class action lawsuit styled as Collins v. Duke Energy Corporation, Civil Action No. 03CP404050, in South Carolina's Circuit Court of Common Pleas for the Fifth Judicial Circuit. We are one of three electric utilities operating in South Carolina named in the suit. The plaintiffs are seeking damages for the alleged improper use of electric transmission easements but have not asserted a dollar amount for thair claims. the plaintiffs contend that the licensing of attachments on electric utility poles, towers and other facilities to non-utility third parties or telecommunication companies for other than the electric utilities' internal use along the electric transmission line right-of-way constitutes a trespass. We are still reviewing the complaint and have not filed a response with the court. The court has not yet held any hearings or made any rulings in this case. We cannot predict the outcome of any future proceedings in this case. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits Exhibits 12 Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends Combined and Ratio of Earnings to Fixed Charges 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. Registrant By: /s/ Robert H. Bazemore, Jr. ----------------------------------------- Robert H. Bazemore, Jr. Vice President and Controller Date: September 8, 2003 Exhibit 12 CAROLINA POWER & LIGHT COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS COMBINED AND RATIO OF EARNINGS TO FIXED CHARGES 12 Months Ended June 30, June 30, December 31, December 31, December 31, 2003 2002 2002 2001 2000 ---- ---- ---- ---- ---- (Thousands of Dollars) Earnings, as defined: Net income $ 438,535 $ 374,750 $ 430,932 $ 364,231 $ 461,028 Fixed charges, as below 209,799 261,299 235,026 270,305 248,759 Income taxes, as below 230,443 189,147 199,211 215,084 282,122 ------------- ------------- ------------ ------------ ------------- Total earnings, as defined $ 878,777 $ 825,196 $ 865,169 $ 849,620 $ 991,909 ============= ============= ============ ============ ============= Fixed Charges, as defined: Interest on long-term debt $ 185,373 $ 232,286 $ 204,672 $ 245,808 $ 223,562 Other interest 11,454 12,574 12,338 11,333 16,441 Imputed interest factor in rentals-charged principally to operating expenses 12,972 16,439 18,016 13,164 8,756 ------------- ------------- ------------ ------------ ------------- Total fixed charges, as defined $ 209,799 $ 261,299 $ 235,026 $ 270,305 $ 248,759 ============= ============= ============ ============ ============= Earnings Before Income Taxes $ 668,978 $ 563,897 $ 630,143 $ 579,315 $ 743,150 ============= ============= ============ ============ ============= Ratio of Earnings Before Income Taxes to Net Income 1.53 1.50 1.46 1.59 1.61 Income Taxes: Income tax expense $ 238,592 $ 197,296 $ 207,360 $ 223,233 $ 290,271 Included in AFUDC - deferred taxes in book depreciation (8,149) (8,149) (8,149) (8,149) (8,149) ------------- ------------- ------------ ------------ ------------- Total income taxes $ 230,443 $ 189,147 $ 199,211 $ 215,084 $ 282,122 ============= ============= ============ ============ ============= Fixed Charges and Preferred Dividends Combined: Preferred dividend requirements $ 2,964 $ 2,964 $ 2,964 $ 2,964 $ 2,966 Portion deductible for income tax purposes (312) (312) (312) (312) (312) ------------- ------------- ------------ ------------ ------------- Preferred dividend requirements not deductible $ 2,652 $ 2,652 $ 2,652 $ 2,652 $ 2,654 ============= ============= ============ ============ ============= Preferred dividend factor: Preferred dividends not deductible times ratio of Earnings before income taxes to net income $ 4,058 $ 3,978 $ 3,872 $ 4,217 $ 4,273 Preferred dividends deductible for income taxes 312 312 312 312 312 Fixed charges, as above 209,799 261,299 235,026 270,305 248,759 ------------- ------------- ------------ ------------ ------------- Total fixed charges and preferred dividends combined $ 214,169 $ 265,589 $ 239,210 $ 274,834 $ 253,344 ============= ============= ============ ============ ============= Ratio of Earnings to Fixed Charges 4.19 3.16 3.68 3.14 3.99 Ratio of Earnings to Fixed Charges and Preferred 4.10 3.11 3.62 3.09 3.92 Dividends Combined
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