EX-99.1 2 q32009_exhibit99.htm Q3 2009 EXHIBIT 99 q32009_exhibit99.htm
Exhibit 99.1
 

 
Progress Energy announces 2009 third-quarter results;
reaffirms full-year 2009 earnings guidance


Highlights:

 
Third Quarter 2009
 
 
¨  
Reports third-quarter GAAP earnings of $0.88 per share, compared to $1.18 per share for the same period last year, primarily driven lower by a litigation verdict related to discontinued operations
 
 
¨  
Reports third-quarter ongoing earnings of $342 million, or $1.22 per share, compared to $306 million, or $1.17 per share, for the same period last year
 
 
Year-to-date 2009
 
 
¨  
Reports GAAP earnings for the first nine months of 2009 of $2.16 per share, compared to $2.77 per share for the same period last year, primarily driven lower by a litigation verdict related to discontinued operations
 
 
¨  
Reports ongoing earnings for the first nine months of 2009 of $704 million, or $2.53 per share, compared to $653 million, or $2.50 per share, for the same period last year
 
 
¨  
Reaffirms 2009 ongoing earnings guidance of $2.95 to $3.15 per share
 
 

 
RALEIGH, N.C. (October 30, 2009) – Progress Energy [NYSE: PGN] announced third-quarter GAAP earnings of $247 million, or $0.88 per share, compared with GAAP earnings of $309 million, or $1.18 per share, for the same period last year. Current period results include a charge of $101 million, net of tax, or $0.36 per share, to discontinued operations related to a litigation verdict.  Third-quarter ongoing earnings were $342 million, or $1.22 per share, compared to $306 million, or $1.17 per share, for the same period last year. The significant drivers in ongoing earnings per share were increased revenues for interim and limited base rate relief, favorable returns on nuclear and environmental investments and O&M cost management, partially offset by lower retail growth and usage and share dilution. (See the discussion later in this release for a reconciliation of ongoing earnings per share to GAAP earnings per share.)

“We remain on track to achieve our financial goals for the year,” said Bill Johnson, chairman, president and CEO. “Against the backdrop of the ongoing economic recession, our company performed well operationally and financially during the third quarter. Our focus on continuous business excellence, cost management and operational efficiency helped to offset lower energy sales in our utilities.”

Progress Energy reaffirms its 2009 ongoing earnings guidance range of $2.95 to $3.15 per share.  The ongoing earnings guidance excludes the impact, if any, from discontinued operations, CVO mark-to-market adjustment, potential impairments and plant retirement charges. Progress Energy is not able to
 
1
 
provide a corresponding GAAP equivalent for the 2009 earnings guidance due to the uncertain nature and amount of these adjustments.

See pages 3-6 for detailed third-quarter and year-to-date earnings variance analyses for the Progress Energy Carolinas (PEC), Progress Energy Florida (PEF) and Corporate and Other Businesses segments.

RECENT DEVELOPMENTS
 
Financial and Regulatory
 
·  
Florida Public Service Commission (FPSC) delayed the decision on PEF’s rate case revenue requirement and rate design until January 11 and January 28, 2010, respectively.
·  
Received approval from the FPSC for PEF’s proposed 2010 cost recovery for new nuclear plant construction at Levy County and nuclear uprate at Crystal River Unit 3.
·  
Filed petitions with the FPSC for proposed 2010 cost recovery in Florida through the following clauses:  fuel, capacity, environmental and energy conservation.
·  
Filed petition with the North Carolinas Utilities Commission (NCUC) to decrease the fuel component of customer rates and adjust the components of energy-efficiency programs and renewable energy resources, resulting in a slight net reduction in customer bills, effective December 2009.
·  
Requested the NCUC delay implementation of the state wide poultry power requirement of Senate Bill 3 by one year to 2012 and cut the ultimate requirement by a third to 300,000 megawatt-hours per year.
·  
Recorded a charge of $101 million, net of tax, related to a litigation verdict in a breach-of-contract lawsuit with U.S. Global related to ownership interests in certain of our now discontinued synthetic fuels facilities.  The Company intends to file post-trial motions and is evaluating grounds for appeal.
·  
Awarded $36 million in a breach-of-contract lawsuit against global engineering, consulting and construction firm Black & Veatch and 12 firm partners. In the event PEF recovers damages, it is not expected to impact net income, given anticipated regulatory and accounting treatment.
 
State-of-the-Art Power Plants
 
·  
Received approval from the NCUC to build a new, 950-megawatt (MW) combined-cycle natural gas plant in Wayne County, N.C., to replace the neighboring 397-MW coal-fired Lee Plant.  The project represents a total investment of approximately $900 million and will substantially reduce overall emissions beginning in early 2013.
·  
Received site certification approval from Florida’s Siting Board, comprised of the governor and Cabinet, to build two nuclear power plant units in Levy County.
 

Alternative Energy and Energy Efficiency
 
·  
Awarded $200 million matching Smart Grid grant from the Department of Energy through the American Recovery and Reinvestment Act.
·  
Placed online a 650-kilowatt solar array, owned and operated by Carolina Solar Energy, near Roxboro, N.C., from which PEC will purchase the electricity under a 20-year solar power contract.
·  
Signed agreement with MP2 Capital to purchase the energy produced by a new 2.3-MW solar photovoltaic array in Laurinburg, N.C.

 
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·  
Signed multiple contracts for solar power through our SunSense Commercial PV program totaling approximately 1 MW of electricity, which brings the total amount of solar-generated electricity scheduled to be purchased by PEC to more than 9 MW.
·  
Announced partnership with Ford and General Motors to participate in early vehicle demonstrations and assess changes in the demand on the electric grid from the use of plug-in electric vehicles as part of the auto companies’ $60 million grant from the American Recovery and Reinvestment Act.
·  
Joined Edison Electric Institute members in a pledge to accelerate adoption of plug-in electric vehicles by aggressive action in five focus areas:  charging infrastructure, customer service, customer education, incentives and conversion of utility fleets.
 
Awards, Honors and Recognitions
 
·  
Named to the Dow Jones Sustainability North America Index for the fifth year in a row as an industry leader in managing economic, environmental and social issues.
·  
Named one of the Top Utilities in Economic Development by Site Selection magazine for the seventh time in the last eight years.
·  
Received award from the Project Management Institute for contributions by Progress Energy’s Project Management Center of Excellence in developing a method to evaluate and rank projects so that appropriate resources, requirements and governance are applied.
·  
Received GovernanceMetrics International’s highest rating for best-in-class corporate governance standards.
·  
Named to Newsweek’s List of Top 500 Green Companies in the U.S.

Press releases regarding various announcements are available on the company’s Web site at www.progress-energy.com/aboutus/news.

 
THIRD-QUARTER 2009 BUSINESS HIGHLIGHTS

Below are the third-quarter and year-to-date 2009 earnings variance analyses for the company’s segments. See the reconciliation tables on pages 6-7 and on pages S-1 and S-2 of the supplemental data for a reconciliation of ongoing earnings per share to GAAP earnings per share. Also see the attached supplemental data schedules for additional information on PEC and PEF electric revenues, energy sales, energy supply, weather impacts and other topics.

QUARTER-OVER-QUARTER ONGOING EPS VARIANCE ANALYSIS
 
Progress Energy Carolinas
 
·  
Reported third-quarter ongoing earnings per share of $0.76, compared with $0.78 for the same period last year; GAAP earnings per share of $0.74, compared with $0.77 for the same period last year.
·  
Reported primary quarter-over-quarter ongoing earnings per share favorability of:
§  
$0.06 O&M primarily due to targeted cost reductions, lower net nuclear plant outage and maintenance costs and the impact of changes to an environmental reserve
§  
$0.01 other margin
§  
$0.01 wholesale revenues
§  
$0.01 depreciation and amortization
§  
$0.01 interest expense
 
 
3
 
·  
Reported primary quarter-over-quarter ongoing earnings per share unfavorability of:
§  
$(0.05) retail growth and usage
§  
$(0.02) income taxes primarily due to impact of changes in tax estimates
§  
$(0.05) share dilution primarily due to Progress Energy’s issuance of 14.4 million shares of common stock in January 2009
·  
13,000 net increase in the average number of customers for the three months ended
 
September 30, 2009, compared to the same period in 2008
 
Progress Energy Florida
 
·  
Reported third-quarter ongoing earnings per share of $0.60, compared with $0.53 for the same period last year; GAAP earnings per share of $0.63, compared with $0.55 for the same period last year.
·  
Reported primary quarter-over-quarter ongoing earnings per share favorability of:
§  
$0.09 retail rates primarily due to impact of interim and limited base rate relief
§  
$0.08 other margin primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets
§  
$0.02 weather
§  
$0.01 O&M
§  
$0.01 interest expense
·  
Reported primary quarter-over-quarter ongoing earnings per share unfavorability of:
§  
$(0.03) retail growth and usage
§  
$(0.03) depreciation and amortization primarily due to impact of depreciable asset base increases
§  
$(0.02) AFUDC equity primarily due to placing the repowered Bartow Plant in service in June 2009
§  
$(0.01) other
§  
$(0.01) income taxes
§  
$(0.04) share dilution primarily due to Progress Energy’s issuance of 14.4 million shares of common stock in January 2009
·  
8,000 net decrease in the average number of customers for the three months ended
 
September 30, 2009, compared to the same period in 2008
 
Corporate and Other Businesses (includes primarily Holding Company Debt and Discontinued Operations)
 
·  
Reported third-quarter ongoing after-tax expenses of $0.14 per share compared with after-tax expenses of $0.14 per share for the same period last year; GAAP after-tax expenses of $0.49 per share, compared with after-tax expenses of $0.14 per share for the same period last year.
·  
Reported primary quarter-over-quarter ongoing after-tax expenses per share favorability of:
§  
$0.02 income taxes primarily due to impact of changes in tax estimates
§  
$0.01 share dilution
·  
Reported primary quarter-over-quarter ongoing after-tax expenses per share unfavorability of:
§  
$(0.02) interest expense primarily due to higher average debt outstanding at the Parent
§  
$(0.01) other
 
 
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YEAR-OVER-YEAR ONGOING EPS VARIANCE ANALYSIS

Progress Energy Carolinas
 
·  
Reported year-to-date ongoing earnings per share of $1.56, compared with $1.65 for the same period last year; GAAP earnings per share of $1.54, compared with $1.64 for the same period last year.
·  
Reported primary year-over-year ongoing earnings per share favorability of:
§  
$0.06 depreciation and amortization primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets and Clean Smokestacks Act amortization recognized during 2008, partially offset by impact of depreciable asset base increases
§  
$0.05 weather
§  
$0.03 O&M primarily due to targeted cost reductions and lower emission allowance expense, partially offset by higher net plant outage and maintenance costs
§  
$0.02 AFUDC equity primarily due to increased eligible construction project costs
§  
$0.02 interest expense primarily due to lower interest rates on variable rate debt, partially offset by higher average debt outstanding
·  
Reported primary year-over-year ongoing earnings per share unfavorability of:
§  
$(0.10) retail growth and usage, primarily in the industrial sector
§  
$(0.03) other operating primarily due to prior-year gain on land sales
§  
$(0.02) other primarily due to losses on balanced billing program and lower interest income
§  
$(0.01) wholesale revenues
§  
$(0.11) share dilution primarily due to Progress Energy’s issuance of 14.4 million shares of common stock in January 2009
·  
15,000 net increase in the average number of customers for the nine months ended
 
September 30, 2009, compared to the same period in 2008
 
Progress Energy Florida
 
·  
Reported year-to-date ongoing earnings per share of $1.37, compared with $1.26 for the same period last year; GAAP earnings per share of $1.38, compared with $1.29 for the same period last year.
·  
Reported primary year-over-year ongoing earnings per share favorability of:
§  
$0.15 other margin primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets
§  
$0.11 retail rates primarily due to impact of interim and limited base rate relief
§  
$0.06 weather
§  
$0.06 AFUDC equity primarily due to increased eligible construction project costs
§  
$0.03 wholesale revenues primarily due to increased capacity charges from new and amended contracts
§  
$0.03 income taxes primarily due to deduction related to nuclear decommissioning trust funds
§  
$0.01 O&M
·  
Reported primary year-over-year ongoing earnings per share unfavorability of:
§  
$(0.10) retail growth and usage
§  
$(0.08) interest expense primarily due to higher average debt outstanding
§  
$(0.04) depreciation and amortization primarily due to impact of depreciable asset base increases
§  
$(0.03) other operating primarily due to regulatory disallowance of fuel costs and prior-year gain on land sales

 
5
 

§  
$(0.09) share dilution primarily due to Progress Energy’s issuance of 14.4 million shares of common stock in January 2009
·  
8,000 net decrease in the average number of customers for the nine months ended
 
September 30, 2009, compared to the same period in 2008


Corporate and Other Businesses (includes primarily Holding Company Debt and Discontinued Operations)
 
·  
Reported year-to-date ongoing after-tax expenses of $0.40 per share compared with after-tax expenses of $0.41 per share for the same period last year; GAAP after-tax expenses of $0.76 per share, compared with after-tax expenses of $0.16 per share for the same period last year.
·  
Reported primary year-over-year ongoing after-tax expenses per share favorability of:
§  
$0.01 other
§  
$0.03 share dilution primarily due to Progress Energy’s issuance of 14.4 million shares of common stock in January 2009
·  
Reported primary year-over-year ongoing after-tax expenses per share unfavorability of:
§  
$(0.03) interest expense primarily due to higher average debt outstanding at the Parent


ONGOING EARNINGS ADJUSTMENTS

Progress Energy’s management uses ongoing earnings per share to evaluate the operations of the company and to establish goals for management and employees. Management believes this presentation is appropriate and enables investors to more accurately compare the company’s ongoing financial performance over the periods presented. Ongoing earnings as presented here may not be comparable to similarly titled measures used by other companies. The following table provides a reconciliation of ongoing earnings per share to reported GAAP earnings per share.
 
 
Progress Energy, Inc.
Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share

    Three months ended September 30   Nine months ended September 30  
   
2009
       2008*     2009       2008*  
Ongoing earnings per share
   $ 1.22     $ 1.17   $ 2.53     $ 2.50  
Tax levelization
     0.02       0.01     (0.02 )     0.03  
Discontinued operations
     (0.36 )     -     (0.37 )     0.25  
CVO mark-to-market
     0.01       -     0.04       (0.01 )
Impairment
     -       -     (0.01 )     -  
Plant retirement charge
     (0.01 )     -     (0.01 )     -  
Reported GAAP earnings per share
   $ 0.88     $ 1.18   $ 2.16     $ 2.77  
Shares outstanding (millions)
     280       262     279       261  
                               
* Previously reported 2008 earnings per share have been restated to reflect the adoption of new accounting guidance that changed the calculation of the number of average common shares outstanding.

Reconciling adjustments from ongoing earnings to GAAP earnings are as follows:
 
Tax Levelization
 
Generally accepted accounting principles require companies to apply an effective tax rate to interim periods that is consistent with a company’s estimated annual tax rate. The company projects the effective tax rate for the year and then, based upon projected operating income for each quarter, raises
 
6
 
or lowers the tax expense recorded in that quarter to reflect the projected tax rate. The resulting tax adjustment increased earnings per share by $0.02 for the quarter and increased earnings per share by $0.01 for the same period last year, but has no impact on the company’s annual earnings. Because this adjustment varies by quarter but has no impact on annual earnings, management does not consider this adjustment to be representative of the company’s ongoing earnings.
 
Discontinued Operations
 
The company has reduced its business risk by exiting nonregulated businesses to focus on the core operations of the utilities. The company recorded the impact of a verdict to pay damages in a breach-of-contract lawsuit related to ownership interests in certain of our synthetic fuels facilities that decreased earnings per share by $0.36 for the quarter. See page S-4 of the supplemental data for further information on the impact of discontinued operations. Due to disposition of these assets, management does not view this activity as representative of the ongoing operations of the company.
 
Contingent Value Obligation (CVO) Mark-to-Market
 
In connection with the acquisition of Florida Progress Corporation, Progress Energy issued 98.6 million CVOs. Each CVO represents the right of the holder to receive contingent payments based on net after-tax cash flows above certain levels of four synthetic fuels facilities purchased by subsidiaries of Florida Progress Corporation in October 1999. The CVO liability is valued at fair value, and unrealized gains and losses from changes in fair value are recognized in earnings each quarter. The CVO mark-to-market increased earnings per share by $0.01 for the quarter and had no impact on earnings for the same period last year. Progress Energy is unable to predict the changes in the fair value of the CVOs, and management does not consider this adjustment to be representative of the company’s ongoing earnings.
 
Impairment
 
The company has recorded impairments of certain investments of its Affordable Housing portfolio. The impairments had no impact on earnings for the quarter or for the same period last year. Management does not consider this adjustment to be representative of the company’s ongoing earnings.
 
Plant Retirement Charge
 
The company recognized a charge for the impact of PEC’s decision to construct a new natural gas plant to replace certain coal-fired generating units, with resulting reduced emissions for compliance with the Clean Smokestacks Act’s 2013 emission targets. The charge decreased earnings per share by $0.01 for the quarter. Since the coal-fired generating units will be retired prior to their estimated useful lives, management does not consider this charge to be representative of the company’s ongoing earnings.

* * * *

 
7
 

Progress Energy’s conference call with the investment community will be held October 30, 2009, at 10 a.m. ET (7 a.m. PT). Investors, media and the public may listen to the conference call by dialing 913-312-0731, confirmation code 9724260. If you encounter problems, please contact Investor Relations at (919) 546-6057. A playback of the call will be available from 1 p.m. ET October 30 through midnight November 13. To listen to the recorded call, dial 719-457-0820 and enter confirmation code 9724260.

A webcast of the live conference call will be available at www.progress-energy.com/webcast. The webcast will be archived on the site for at least 30 days following the call for those unable to listen in real time. The webcast will include audio of the conference call and a slide presentation referred to by management during the call. The slide presentation will be available for download beginning at 10:30 a.m. ET today at www.progress-energy.com/webcast.

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system.  Progress Energy celebrated a century of service in 2008. Visit the company’s Web site at www.progress-energy.com.


 
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Caution Regarding Forward-Looking Information:
 
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The matters discussed in this document involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.
 
Examples of factors that you should consider with respect to any forward-looking statements made throughout this document include, but are not limited to, the following: the impact of fluid and complex laws and regulations, including those relating to the environment and the Energy Policy Act of 2005; the ability to meet the anticipated future need for additional baseload generation and associated transmission facilities in our regulated service territories and the accompanying regulatory and financial risks; the financial resources and capital needed to comply with environmental laws and renewable energy portfolio standards and our ability to recover related eligible costs under cost-recovery clauses or base rates; our ability to meet current and future renewable energy requirements; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, regulatory and financial risks; the impact on our facilities and businesses from a terrorist attack; weather and drought conditions that directly influence the production, delivery and demand for electricity; recurring seasonal fluctuations in demand for electricity; the ability to recover in a timely manner, if at all, costs associated with future significant weather events through the regulatory process; economic fluctuations and the corresponding impact on our customers, including downturns in the housing and consumer credit markets; fluctuations in the price of energy commodities and purchased power and our ability to recover such costs through the regulatory process; our ability to control costs, including O&M and large construction projects; the ability of our subsidiaries to pay upstream dividends or distributions to Progress Energy; the duration and severity of the recession; the ability to successfully access capital markets on favorable terms; the stability of commercial credit markets and our access to short- and long-term credit; the impact that increases in leverage may have on us; our ability to maintain our current credit ratings and the impact on our financial condition and ability to meet our cash and other financial obligations in the event our credit ratings are downgraded; our ability to fully utilize tax credits generated from the previous production and sale of qualifying synthetic fuels under Internal Revenue Code Section 29/45K; the investment performance of our nuclear decommissioning trust funds; the investment performance of the assets of our pension and benefit plans and resulting impact on future funding requirements; the impact of potential goodwill impairments; the outcome of any ongoing or future litigation or similar disputes and the impact of any such outcome or related settlements; and unanticipated changes in operating expenses and capital expenditures. Many of these risks similarly impact our nonreporting subsidiaries. These and other risk factors are detailed from time to time in our filings with the SEC. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can management assess the effect of each such factor on us.
 
Any forward-looking statement is based on information current as of the date of this document and speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made.  
# # #

Contacts:                      Corporate Communications – (919) 546-6189 or toll-free (877) 641-NEWS (6397)


 
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PROGRESS ENERGY, INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
September 30, 2009

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of INCOME
  
   
Three months ended
September 30,
    
Nine months ended
 September 30,
  
(in millions except per share data)
  
2009
    
2008
    
2009
    
2008
  
Operating revenues
   $ 2,824     $ 2,696     $ 7,578     $ 7,006  
Operating expenses
                                
Fuel used in electric generation
     1,075       869       2,855       2,262  
Purchased power
     125       450       599       1,012  
Operation and maintenance
     423       439       1,360       1,370  
Depreciation, amortization and accretion
     371       205       877       619  
Taxes other than on income
     152       141       425       387  
Other
     2       1       14       (6 )
Total operating expenses
     2,148       2,105       6,130       5,644  
Operating income
     676       591       1,448       1,362  
Other income (expense)
                                
Interest income
     2       8       8       20  
Allowance for equity funds used during construction
     20       34       95       84  
Other, net
     1       (7 )     13       (9 )
Total other income, net
     23       35       116       95  
Interest charges
                                
Interest charges
     174       178       534       493  
Allowance for borrowed funds used during construction
     (6 )     (11 )     (30 )     (27 )
Total interest charges, net
     168       167       504       466  
Income from continuing operations before income tax
     531       459       1,060       991  
Income tax expense
     181       150       352       329  
Income from continuing operations
     350       309       708       662  
Discontinued operations, net of tax
     (102 )     1       (103 )     67  
Net income
     248       310       605       729  
Net income attributable to noncontrolling interests, net of tax
     (1 )     (1 )     (2 )     (6 )
Net income attributable to controlling interests
   $ 247     $ 309     $ 603     $ 723  
Average common shares outstanding – basic
     280       262       279       261  
Basic and diluted earnings per common share
                                
Income from continuing operations attributable to controlling interests, net of tax
   $ 1.24     $ 1.18     $ 2.53     $ 2.52  
Discontinued operations attributable to controlling interests, net of tax
     (0.36 )     –       (0.37 )     0.25  
Net income attributable to controlling interests
   $ 0.88     $ 1.18     $ 2.16     $ 2.77  
Dividends declared per common share
   $ 0.620     $ 0.615     $ 1.860     $ 1.845  
Amounts attributable to controlling interests
                                
Income from continuing operations attributable to controlling interests, net of tax
   $ 349     $ 308     $ 706     $ 657  
Discontinued operations attributable to controlling interests, net of tax
     (102 )     1       (103 )     66  
Net income attributable to controlling interests
   $ 247     $ 309     $ 603     $ 723  

The Unaudited Condensed Consolidated Interim Financial Statements should be read in conjunction with the Company’s Annual Report to shareholders.  These statements have been prepared for the purpose of providing information concerning the Company and not in connection with any sale, offer for sale, or solicitation of an offer to buy any securities.

 
 
 
PROGRESS ENERGY, INC.
  
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
  
(in millions)
  
September 30, 2009
    
December 31, 2008
  
ASSETS
            
Utility plant
            
Utility plant in service
   $ 28,041     $ 26,326  
Accumulated depreciation
     (11,539 )     (11,298 )
Utility plant in service, net
     16,502       15,028  
Held for future use
     38       38  
Construction work in progress
     2,392       2,745  
Nuclear fuel, net of amortization
     502       482  
Total utility plant, net
     19,434       18,293  
Current assets
                
Cash and cash equivalents
     155       180  
Receivables, net
     939       867  
Inventory
     1,352       1,239  
Regulatory assets
     180       533  
Derivative collateral posted
     185       353  
Income taxes receivable
     8       194  
Prepayments and other current assets
     230       154  
Total current assets
     3,049       3,520  
Deferred debits and other assets
                
Regulatory assets
     2,463       2,567  
Nuclear decommissioning trust funds
     1,300       1,089  
Miscellaneous other property and investments
     446       446  
Goodwill
     3,655       3,655  
Other assets and deferred debits
     311       303  
Total deferred debits and other assets
     8,175       8,060  
Total assets
   $ 30,658     $ 29,873  
CAPITALIZATION AND LIABILITIES
                
Common stock equity
                
Common stock without par value, 500 million shares authorized, 279 million and 264 million shares issued and outstanding, respectively
   $ 6,797     $ 6,206  
Unearned ESOP shares (1 million shares)
     (12 )     (25 )
Accumulated other comprehensive loss
     (99 )     (116 )
Retained earnings
     2,695       2,622  
Total common stock equity
     9,381       8,687  
Noncontrolling interests
     6       6  
Total equity
     9,387       8,693  
Preferred stock of subsidiaries
     93       93  
Long-term debt, affiliate
     272       272  
Long-term debt, net
     10,834       10,387  
Total capitalization
     20,586       19,445  
Current liabilities
                
Current portion of long-term debt
     400       –  
Short-term debt
     250       1,050  
Accounts payable
     771       912  
Interest accrued
     151       167  
Dividends declared
     174       164  
Customer deposits
     294       282  
Derivative liabilities
     246       493  
Other current liabilities
     474       418  
Total current liabilities
     2,760       3,486  
Deferred credits and other liabilities
                
Noncurrent income tax liabilities
     1,065       818  
Accumulated deferred investment tax credits
     119       127  
Regulatory liabilities
     2,420       2,181  
Asset retirement obligations
     1,540       1,471  
Accrued pension and other benefits
     1,393       1,594  
Capital lease obligations
     222       231  
Derivative liabilities
     207       269  
Other liabilities and deferred credits
     346       251  
Total deferred credits and other liabilities
     7,312       6,942  
Commitments and contingencies
                
Total capitalization and liabilities
   $ 30,658     $ 29,873  

 
 
 
PROGRESS ENERGY, INC.
  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS
  
(in millions)
  
Nine months ended September 30
  
2009
    
2008
  
Operating activities
            
Net income
   $ 605     $ 729  
Adjustments to reconcile net income to net cash provided by operating activities
                
Depreciation, amortization and accretion
     991       703  
Deferred income taxes and investment tax credits, net
     50       270  
Deferred fuel cost (credit)
     81       (330 )
Allowance for equity funds used during construction
     (95 )     (84 )
Loss (gain) on sales of assets
     1       (71 )
Litigation expense
     115       –  
Other adjustments to net income
     186       94  
Cash (used) provided by changes in operating assets and liabilities
                
Receivables
     (99 )     150  
Inventory
     (118 )     (124 )
Derivative collateral posted
     155       (6 )
Prepayments and other current assets
     9       32  
Income taxes, net
     190       (92 )
Accounts payable
     (91 )     181  
Other current liabilities
     25       (24 )
Other assets and deferred debits
     51       (62 )
Other liabilities and deferred credits
     (286 )     (7 )
Net cash provided by operating activities
     1,770       1,359  
Investing activities
                
Gross property additions
     (1,644 )     (1,760 )
Nuclear fuel additions
     (148 )     (158 )
Proceeds from sales of discontinued operations and other assets, net of cash divested
     –       63  
Purchases of available-for-sale securities and other investments
     (1,271 )     (1,190 )
Proceeds from available-for-sale securities and other investments
     1,245       1,154  
Other investing activities
     (5 )     (3 )
Net cash used by investing activities
     (1,823 )     (1,894 )
Financing activities
                
Issuance of common stock
     557       106  
Dividends paid on common stock
     (520 )     (481 )
Payments of short-term debt with original maturities greater than 90 days
     (29 )     (176 )
Net (decrease) increase in short-term debt
     (871 )     470  
Proceeds from issuance of long-term debt, net
     1,337       1,797  
Retirement of long-term debt
     (400 )     (877 )
Cash distributions to noncontrolling interests
     (5 )     (85 )
Other financing activities
     (41 )     (71 )
Net cash provided by financing activities
     28       683  
Net (decrease) increase in cash and cash equivalents
     (25 )     148  
Cash and cash equivalents at beginning of period
     180       255  
Cash and cash equivalents at end of period
   $ 155     $ 403  



 
 

Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-1
Unaudited
 
Earnings Variances
Third Quarter 2009 vs. 2008

     Regulated Utilities          
($ per share)
  
Carolinas
  
Florida
  
 Corporate and
Other Businesses
  
Consolidated
  
                     
2008 GAAP earnings
  
                       0.77
  
                       0.55
  
                      (0.14)
  
                       1.18
 A
Tax levelization
  
                        0.01
  
                       (0.02)
      
                       (0.01)
 B
2008 ongoing earnings
  
                       0.78
  
                       0.53
  
                      (0.14)
  
                       1.17
  
                     
Weather - retail
      
                        0.02
      
                        0.02
  
                     
Growth and usage - retail
  
                       (0.05)
  
                       (0.03)
      
                       (0.08)
  
                     
Retail rates
      
                        0.09
      
                        0.09
 C
                     
Other margin
  
                        0.01
  
                        0.08
      
                        0.09
 D
                     
Wholesale
  
                        0.01
          
                        0.01
  
                     
O&M
  
                        0.06
  
                        0.01
      
                        0.07
E
                     
Other
      
                       (0.01)
  
                       (0.01)
  
                       (0.02)
  
                 
 
  
AFUDC equity
      
                       (0.02)
      
                       (0.02)
F
                 
 
  
Depreciation and amortization
  
                        0.01
  
                       (0.03)
      
                       (0.02)
G
                     
Interest expense
  
                        0.01
  
                        0.01
  
                       (0.02)
  
                            -
H
                     
Income taxes
  
                       (0.02)
  
                       (0.01)
  
                        0.02
  
                       (0.01)
 I
                     
Share dilution
  
                       (0.05)
  
                       (0.04)
  
                        0.01
  
                       (0.08)
 J
                     
2009 ongoing earnings
  
                       0.76
  
                       0.60
  
                      (0.14)
  
                       1.22
  
Tax levelization
  
                       (0.01)
  
                        0.03
      
                        0.02
 B
Discontinued operations
          
                       (0.36)
  
                       (0.36)
 K
CVO mark-to-market
          
                        0.01
  
                        0.01
 L
Plant retirement charge
  
                       (0.01)
          
                       (0.01)
 M
2009 GAAP earnings
  
                       0.74
  
                       0.63
  
                      (0.49)
  
                       0.88
  
 
Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, tax levelization, purchase accounting transactions and corporate eliminations.
  
In this analysis, individual variances are presented net of the effect of pass-through items and other offsets.
  
 
   
A -
GAAP earnings for 2008 is $0.01 less than previously reported due to adoption of new accounting guidance that changed the calculation of the number of average common shares outstanding.
B -
Tax levelization impact, related to cyclical nature of energy demand/earnings and various permanent items of income or deduction.
C -
Florida - Favorable primarily due to impact of interim and limited base rate relief.
            
D -
Florida - Favorable primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets.
  
E -
Carolinas - Favorable primarily due to targeted cost reductions, lower net nuclear plant outage and maintenance costs and the impact of changes to an environmental reserve.
F -
AFUDC equity is presented gross of tax as it is excluded from the calculation of income tax expense.
      
 
Florida - Unfavorable primarily due to placing the repowered Bartow Plant in service in June 2009.
        
G -
Florida - Unfavorable primarily due to impact of depreciable asset base increases.
            
H -
Corporate and Other - Unfavorable primarily due to higher average debt outstanding at the Parent.
        
I -
Carolinas - Unfavorable primarily due to impact of changes in tax estimates.
            
 
Corporate and Other - Favorable primarily due to impact of changes in tax estimates.
        
J -
Primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009.
        
K -
Discontinued operations consists of Terminals operations and Synthetic Fuels businesses.
        
L -
Corporate and Other - Impact of change in fair value of outstanding CVOs.
            
M -
Carolinas - Impact of decision to retire in-service generating units prior to the end of their estimated useful life.
    
                           

 
S-1
 
 
Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-2
Unaudited
 
Earnings Variances
Year-to-Date September 30, 2009 vs. 2008

 
     Regulated Utilities          
($ per share)
  
Carolinas
  
Florida
  
 Corporate and
Other Businesses
  
Consolidated
  
                     
2008 GAAP earnings
  
                       1.64
  
                       1.29
  
                      (0.16)
  
                       2.77
 A
Tax levelization
  
                        0.01
  
                       (0.03)
  
                       (0.01)
  
                       (0.03)
 B
Discontinued operations
          
                       (0.25)
  
                       (0.25)
 C
CVO mark-to-market
          
                        0.01
  
                        0.01
 D
2008 ongoing earnings
  
                       1.65
  
                       1.26
  
                      (0.41)
  
                       2.50
 A
                     
Weather - retail
  
                        0.05
  
                        0.06
      
                        0.11
  
                     
Growth and usage - retail
  
                       (0.10)
  
                       (0.10)
      
                       (0.20)
  
                     
Retail rates
      
                        0.11
      
                        0.11
 E
                     
Other margin
      
                        0.15
      
                        0.15
 F
                     
Wholesale
  
                       (0.01)
  
                        0.03
      
                        0.02
G
                     
O&M
  
                        0.03
  
                        0.01
      
                        0.04
H
                     
Other operating
  
                       (0.03)
  
                       (0.03)
      
                       (0.06)
I
                     
Other
  
                       (0.02)
      
                        0.01
  
                       (0.01)
J
                 
 
  
AFUDC equity
  
                        0.02
  
                        0.06
      
                        0.08
K
                 
 
  
Depreciation and amortization
  
                        0.06
  
                       (0.04)
      
                        0.02
L
                     
Interest expense
  
                        0.02
  
                       (0.08)
  
                       (0.03)
  
                       (0.09)
M
                     
Income taxes
      
                        0.03
      
                        0.03
 N
                     
Share dilution
  
                       (0.11)
  
                       (0.09)
  
                        0.03
  
                       (0.17)
 O
                     
2009 ongoing earnings
  
                       1.56
  
                       1.37
  
                      (0.40)
  
                       2.53
  
Tax levelization
  
                       (0.01)
  
                        0.01
  
                       (0.02)
  
                       (0.02)
B
Discontinued operations
          
                       (0.37)
  
                       (0.37)
C
CVO mark-to-market
          
                        0.04
  
                        0.04
D
Impairment
          
                       (0.01)
  
                       (0.01)
P
Plant retirement charge
  
                       (0.01)
          
                       (0.01)
Q
2009 GAAP earnings
  
                       1.54
  
                       1.38
  
                      (0.76)
  
                       2.16
  
                 
 
  
 
 
Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, tax levelization, purchase accounting transactions and corporate eliminations.
In this analysis, individual variances are presented net of the effect of pass-through items and other offsets.
    
 
                           
A -
GAAP and ongoing earnings for 2008 are $0.01 less than previously reported due to adoption of new accounting guidance that changed the calculation of the number of average common shares outstanding.
B -
Tax levelization impact, related to cyclical nature of energy demand/earnings and various permanent items of income or deduction.
C -
Discontinued operations consists primarily of 1) Terminals operations and Synthetic Fuels businesses 2) CCO operations and 3) Coal Mining businesses.
D -
Corporate and Other - Impact of change in fair value of outstanding CVOs.
            
E -
Florida - Favorable primarily due to impact of interim and limited base rate relief.
        
F -
Florida - Favorable primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets.
G -
Florida - Favorable primarily due to increased capacity charges from new and amended contracts.
    
H -
Carolinas - Favorable primarily due to targeted cost reductions and lower emission allowance expense, partially offset by higher net plant outage and maintenance costs.
I -
Carolinas - Unfavorable primarily due to prior-year gain on land sales.
            
 
Florida - Unfavorable primarily due to regulatory disallowance of fuel costs and prior-year gain on land sales.
J -
Carolinas - Unfavorable primarily due to losses on balanced billing program and lower interest income.
    
K -
AFUDC equity is presented gross of tax as it is excluded from the calculation of income tax expense.
    
 
Carolinas - Favorable primarily due to increased eligible construction project costs.
        
 
Florida - Favorable primarily due to increased eligible construction project costs.
        
L -
Carolinas - Favorable primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets and Clean Smokestacks Act amortization recognized during 2008, partially offset by impact of depreciable asset base increases. The North Carolina jurisdictional aggregate minimum amount of accelerated cost recovery has been met and the South Carolina jurisdictional obligation was terminated by the SCPSC. PEC has ceased recording Clean Smokestacks Act amortization in accordance with a regulatory order.
 
Florida - Unfavorable primarily due to impact of depreciable asset base increases.
        
 M -
Carolinas - Favorable primarily due to lower interest rates on variable rate debt, partially offset by higher average debt outstanding.
 
Florida - Unfavorable primarily due to higher average debt outstanding.
            
 
Corporate and Other - Unfavorable primarily due to higher average debt outstanding at the Parent.
    
N -
Florida - Favorable primarily due to deduction related to nuclear decommissioning trust funds.
      
O -
Primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009.
    
P -
Corporate and Other - Impairment of Affordable Housing portfolio investments.
        
Q -
Carolinas - Impact of decision to retire in-service generating units prior to the end of their estimated useful life.

 
S-2
 

Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-3
Unaudited - Data is not weather-adjusted
 
Utility Statistics


             
   
Three Months Ended
  
Three Months Ended
  
Percentage Change
   
September 30, 2009
  
September 30, 2008
  
From September 30, 2008
Operating Revenues (in millions)
Carolinas
Florida
Total
Progress
Energy
  
Carolinas
Florida
Total
Progress
Energy
  
Carolinas
Florida
Residential
  
$525
$806
$1,331
  
$495
$723
$1,218
  
             6.1
%
         11.5
%
Commercial
  
          348
          371
         719
  
          331
          328
         659
  
             5.1
  
         13.1
  
Industrial
  
          197
            85
         282
  
          200
            82
         282
  
           (1.5)
  
           3.7
  
Governmental
  
            33
            92
         125
  
            32
            80
         112
  
             3.1
  
         15.0
  
Unbilled
  
           (11)
             (2)
          (13)
  
           (16)
             (6)
          (22)
  
               -
  
             -
  
Total Retail
  
1,092
1,352
2,444
  
1,042
1,207
2,249
  
             4.8
  
         12.0
  
Wholesale
  
          186
          115
         301
  
          196
          175
         371
  
           (5.1)
  
        (34.3)
  
Miscellaneous revenue
  
            29
            49
            78
  
            28
            46
            74
  
             3.6
  
           6.5
  
 Total Electric
  
$1,307
$1,516
$2,823
  
$1,266
$1,428
$2,694
  
             3.2
%
           6.2
%
                           
Energy Sales (millions of kWh)
                          
Residential
  
       4,824
       5,905
    10,729
  
       4,929
       6,093
    11,022
  
           (2.1)
%
          (3.1)
%
Commercial
  
       3,923
       3,405
      7,328
  
       4,079
       3,523
      7,602
  
           (3.8)
  
          (3.3)
  
Industrial
  
       2,789
          863
      3,652
  
       2,879
          981
      3,860
  
           (3.1)
  
        (12.0)
  
Governmental
  
437
872
1,309
  
437
901
1,338
  
               -
  
          (3.2)
  
Unbilled
  
(397)
52
(345)
  
(250)
(204)
(454)
  
               -
  
             -
  
Total Retail
  
11,576
11,097
22,673
  
12,074
11,294
23,368
  
           (4.1)
  
          (1.7)
  
Wholesale
  
3,607
1,096
      4,703
  
3,746
1,944
      5,690
  
           (3.7)
  
        (43.6)
  
Total Electric
  
15,183
12,193
27,376
  
15,820
13,238
29,058
  
           (4.0)
%
          (7.9)
%
                           
Energy Supply (millions of kWh)
                        
Generated
                          
Steam
  
       6,869
       3,467
    10,336
  
       7,394
       4,906
    12,300
          
Nuclear
  
       6,289
       1,587
      7,876
  
       6,258
       1,653
      7,911
          
Combustion turbines/combined cycle
       1,588
       5,843
      7,431
  
       1,074
       4,527
      5,601
          
Hydro
  
            93
               -
            93
  
            52
               -
            52
          
 Purchased
  
       1,040
       2,184
      3,224
  
       1,726
       2,952
      4,678
          
Total Energy Supply (Company Share)
     15,879
     13,081
    28,960
  
     16,504
     14,038
    30,542
          
                           
Impact of Weather to Normal on Retail Sales
                    
Heating Degree Days
                          
Actual
  
              8
               -
    
              9
               -
    
         (11.1)
%
             -
%
Normal
  
            16
               -
    
            16
               -
            
Cooling Degree Days
                          
Actual
  
1,092
1,402
    
1,090
1,348
    
             0.2
%
           4.0
%
Normal
  
       1,087
       1,389
    
       1,095
       1,389
            
Impact of retail weather to normal on EPS
$0.00
$0.00
$0.00
  
$0.00
($0.01)
($0.01)
          
 
 
             
   
Nine Months Ended
  
Nine Months Ended
  
Percentage Change
   
September 30, 2009
  
September 30, 2008
  
From September 30, 2008
Operating Revenues (in millions)
Carolinas
Florida
Total
Progress
Energy
  
Carolinas
Florida
Total
Progress
Energy
  
Carolinas
Florida
Residential
  
$1,404
$2,023
$3,427
  
$1,256
$1,739
$2,995
  
           11.8
%
         16.3
%
Commercial
  
          926
          990
      1,916
  
          862
          852
      1,714
  
             7.4
  
         16.2
  
Industrial
  
          533
          248
         781
  
          555
          230
         785
  
           (4.0)
  
           7.8
  
Governmental
  
            85
258
         343
  
            78
          217
         295
  
             9.0
  
         18.9
  
Unbilled
  
           (18)
28
            10
  
           (10)
            20
            10
  
                -
  
             -
  
Total Retail
  
2,930
3,547
6,477
  
2,741
3,058
5,799
  
             6.9
  
         16.0
  
Wholesale
  
          544
          327
         871
  
          566
          427
         993
  
           (3.9)
  
        (23.4)
  
Miscellaneous revenue
  
            87
          138
         225
  
            74
          133
         207
  
           17.6
  
           3.8
  
Total Electric
  
$3,561
$4,012
$7,573
  
$3,381
$3,618
$6,999
  
             5.3
%
         10.9
%
                           
Energy Sales (millions of kWh)
                          
Residential
  
     13,553
     14,700
    28,253
  
     13,192
     14,854
    28,046
  
             2.7
%
          (1.0)
%
Commercial
  
     10,528
       8,907
    19,435
  
     10,741
       9,252
    19,993
  
           (2.0)
  
          (3.7)
  
Industrial
  
       7,771
       2,486
    10,257
  
       8,773
       2,855
    11,628
  
         (11.4)
  
        (12.9)
  
Governmental
  
1,137
2,409
3,546
  
1,105
2,468
3,573
  
             2.9
  
          (2.4)
  
Unbilled
  
(227)
740
513
  
(246)
492
246
  
               -
  
             -
  
Total Retail
  
32,762
29,242
62,004
  
33,565
29,921
63,486
  
           (2.4)
  
          (2.3)
  
Wholesale
  
10,542
3,108
    13,650
  
10,959
5,484
    16,443
  
           (3.8)
  
        (43.3)
  
Total Electric
  
43,304
32,350
75,654
  
44,524
35,405
79,929
  
           (2.7)
%
          (8.6)
%
                           
Energy Supply (millions of kWh)
                        
Generated
                          
Steam
  
     20,791
       9,789
    30,580
  
     21,975
     14,775
    36,750
          
Nuclear
  
     17,857
       4,945
    22,802
  
     18,675
       4,685
    23,360
          
Combustion turbines/combined cycle
       2,985
     12,912
    15,897
  
       2,026
     10,095
    12,121
          
Hydro
  
          482
               -
         482
  
          339
               -
         339
          
 Purchased
  
       2,952
       6,822
      9,774
  
       3,359
       7,853
    11,212
          
            Total Energy Supply (Company Share)
     45,067
     34,468
    79,535
  
     46,374
     37,408
    83,782
          
                           
Impact of Weather to Normal on Retail Sales
                    
Heating Degree Days
                          
Actual
  
       1,851
          391
    
       1,765
          286
    
             4.9
%
         36.7
%
Normal
  
       1,899
          385
    
       1,896
          386
            
Cooling Degree Days
                          
Actual
  
1,756
2,588
    
1,670
2,533
    
             5.1
%
           2.2
%
Normal
  
       1,630
       2,526
    
       1,645
       2,526
            
Impact of retail weather to normal on EPS
$0.03
$0.02
$0.05
  
($0.02)
($0.03)
($0.05)
          


 
S-3
 
 
Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-4
Unaudited
 

Adjusted O&M Reconciliation (A)
                  
   
Nine months ended
        
(in millions)
  
September 30, 2009
    
September 30, 2008
    
Growth
  
Reported GAAP O&M
   $ 1,360     $ 1,370       -0.7 %
Adjustments
                        
Carolinas
                      
O&M recoverable through clauses
     (27 )     (18 )        
Timing of nuclear outages (B)
     (28 )     -          
Litigation judgment
     (4 )     -          
Plant retirement charge
     (6 )     -          
Florida
                  
Storm damage reserve
     -       (66 )        
Energy conservation cost recovery clause (ECCR)
     (56 )     (52 )        
Environmental cost recovery clause (ECRC)
     (73 )     (27 )        
Nuclear cost recovery
     (3 )     (2 )        
Sales and use tax audit adjustments
     -       5          
Severance associated with Energy Delivery restructuring
     -       (6 )        
Vacation benefits policy change (C)
     9       -          
Adjusted O&M
   $ 1,172     $ 1,204       -2.7 %

A - The preceding table provides a reconciliation of reported GAAP O&M to Adjusted O&M.  Adjusted O&M excludes certain expenses that are recovered through cost-recovery clauses which have no material impact on earnings, as well as certain non-recurring items. Management believes this presentation is appropriate and enables investors to more accurately compare the company's O&M expense over the periods presented.  Adjusted O&M as presented here may not be comparable to similarly titled measures used by other companies.
B - Nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, repairs and certain other modifications.  PEC experienced two full nuclear outages during the nine months ended September 30, 2009, compared to one full nuclear outage during the nine months ended September 30, 2008.  Therefore, the average expense for one full nuclear outage has been excluded from the nine months ended September 30, 2009 in order to more accurately compare the company's O&M expense over the periods presented.
C - Vacation benefits policy change has no O&M impact at Carolinas due to regulatory treatment.



 
         
Impact of Discontinued Operations
        
 
Nine months ended
    
(Basic earnings per share)
September 30, 2009
  
September 30, 2008
  
Coal Mining Operations
$-
  
$0.01
  
Rail
-
  
0.01
  
Terminals and Synthetic Fuels
(0.37)
  
0.23
  
Total Discontinued Operations
($0.37)
  
$0.25
  
         
 
Financial Statistics
        
 
September 30, 2009
  
September 30, 2008
  
Return on average common stock equity
7.7
%
9.6
%
Book value per common share
$33.48
  
$33.48
  
Capitalization
        
Common stock equity
44.1
%
44.1
%
Preferred stock of subsidiaries and noncontrolling interest
0.5
%
0.5
%
Total debt
55.4
%
55.4
%
Total Capitalization
100.0
%
100.0
%
         

 
S-4