Exhibit 12

PROGRESS ENERGY CAROLINAS, INC.
EXHIBIT NO. 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED DIVIDENDS COMBINED AND RATIO OF EARNINGS TO FIXED CHARGES

(million of dollars)
Twelve Months Ended September 30	2005			2004
Earnings, as defined:
Income before cumulative effect of change in accounting principles	$	441		$	509
Fixed charges, as below		217			205
Income taxes, as below		199			252
Total earnings, as defined	$	857		$	966
Fixed Charges, as defined:
Interest on long-term debt	$	187		$	186
Other interest		25			13
Imputed interest factor in rentals – charged principally to operating expenses		6			7
Total fixed charges, as defined	$	218		$	206
Preferred dividends, as defined	$	4		$	4
Total fixed charges and preferred dividends combined	$	222		$	210
Income Taxes:
Income tax expense	$	204		$	251
Included in AFUDC – deferred taxes in book depreciation		(5	)		(5	)
Total income taxes	$	199		$	252
Ratio of Earnings to Fixed Charges		3.93			4.69
Ratio of Earnings to Fixed Charges and Preferred Dividends Combined		3.86			4.60

(million of dollars)
Years Ended December 31	2004			2003			2002			2001			2000
Earnings, as defined:
Income before cumulative effect of change in accounting principles	$	461		$	505		$	431		$	364		$	461
Fixed charges, as below		202			205			224			264			246
Income taxes, as below		234			233			199			215			282
Total earnings, as defined	$	897		$	943		$	854		$	843		$	989
Fixed Charges, as defined:
Interest on long-term debt	$	183		$	187		$	205		$	246		$	224
Other interest		12			11			12			11			17
Imputed interest factor in rentals – charged principally to operating expenses		7			7			7			7			5
Total fixed charges, as defined	$	202		$	205		$	224		$	264		$	246
Preferred dividends, as defined	$	5		$	4		$	4		$	5		$	5
Total fixed charges and preferred dividends combined	$	207		$	209		$	228		$	269		$	251
Income Taxes:
Income tax expense	$	239		$	241		$	207		$	223		$	290
Included in AFUDC – deferred taxes in book depreciation		(5	)		(8	)		(8	)		(8	)		(8	)
Total income taxes	$	234		$	233		$	199		$	215		$	282
Ratio of Earnings to Fixed Charges		4.44			4.60			3.81			3.19			4.02
Ratio of Earnings to Fixed Charges and Preferred Dividends Combined		4.33			4.51			3.75			3.13			3.94