Financial Information by Business Segment

9 Months Ended

Sep. 30, 2011

Financial Information By Business Segment Disclosure [Abstract]

Financial Information by Business Segment

13.FINANCIAL INFORMATION BY BUSINESS SEGMENT

Our reportable segments are PEC and PEF, both of which are primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina and in portions of Florida, respectively. These electric operations also distribute and sell electricity to other utilities, primarily on the east coast of the United States.

In addition to the reportable operating segments, the Corporate and Other segment includes the operations of the Parent and PESC and other miscellaneous nonregulated businesses that do not separately meet the quantitative thresholds for disclosure as separate reportable business segments.

Products and services are sold between the various reportable segments. All intersegment transactions are at cost.

(in millions)			PEC		PEF	Corporate and Other		Eliminations			Totals
At and for the three months ended September 30, 2011
Revenues
	Unaffiliated	$	1,332	$	1,413	$	2	$	0	$	2,747
	Intersegment		0		1		69		(70)		0
	Total revenues		1,332		1,414		71		(70)		2,747
Ongoing Earnings			202		202		(60)		0		344
Total Assets			15,543		14,014		20,954		(16,834)		33,677
For the three months ended September 30, 2010
Revenues
	Unaffiliated	$	1,414	$	1,543	$	5	$	0	$	2,962
	Intersegment		0		0		66		(66)		0
	Total revenues		1,414		1,543		71		(66)		2,962
Ongoing Earnings			233		177		(49)		0		361
For the nine months ended September 30, 2011
Revenues
	Unaffiliated	$	3,525	$	3,637	$	8	$	0	$	7,170
	Intersegment		0		2		203		(205)		0
	Total revenues		3,525		3,639		211		(205)		7,170
Ongoing Earnings			453		454		(150)		0		757
For the nine months ended September 30, 2010
Revenues
	Unaffiliated	$	3,794	$	4,064	$	11	$	0	$	7,869
	Intersegment		0		1		179		(180)		0
	Total revenues		3,794		4,065		190		(180)		7,869
Ongoing Earnings			493		409		(146)		0		756

Management uses the non-GAAP financial measure “Ongoing Earnings” as a performance measure to evaluate the results of our segments and operations. Ongoing Earnings is computed as GAAP net income attributable to controlling interests less discontinued operations and the effects of certain identified gains and charges, which are considered Ongoing Earnings adjustments. Some of the excluded gains and charges have occurred in more than one reporting period but are not considered representative of fundamental core earnings.Management has identified the following Ongoing Earnings adjustments: tax levelization, whichincreases or decreases the tax expense recorded in the reporting period to reflect the annual projected tax rate, because it has no impact on annual earnings; CVO mark-to-market adjustments because we are unable to predict changes in their fair value; CR3 indemnification charge (and subsequent adjustments, if any)for estimated future years' joint owner replacement power costs (through the expiration of the indemnification provisions of the joint owner agreement) because GAAP requires that the charge be accounted for in the period in which it becomes probable and estimable rather than the periods to which it relates; and the impact from changes in the tax treatment of the Medicare Part D subsidy because GAAP requires that the impact of the tax law change be accounted for in the period of enactment rather than the affected tax year. Additionally, management does not considerimpairments, charges (and subsequent adjustments, if any) recognized for the retirement of generating units prior to the end of their estimated useful lives, merger and integration costs,and operating results of discontinued operations to be representative of our ongoing operations and excluded these items in computing Ongoing Earnings.

Reconciliations of consolidated Ongoing Earnings to net income attributable to controlling interests follow:

		For the three months ended September 30
(in millions)			2011		2010
Ongoing Earnings		$	344	$	361
Tax levelization			8		4
CVO mark-to-market, net of tax benefit of $13 (Note 10)			(50)		0
Impairment, net of tax benefit of $1			0		(2)
Merger and integration costs, net of tax benefit of $7 (Note 2)			(15)		0
CR3 indemnification adjustment, net of tax expense of $2 (Note 15B)			4		0
Continuing income attributable to noncontrolling interests, net of tax			2		2
Income from continuing operations before cumulative effect of change in accounting principle			293		365
Discontinued operations, net of tax			0		(2)
Cumulative effect of change in accounting principle, net of tax			0		2
Net income attributable to noncontrolling interests, net of tax			(2)		(4)
	Net income attributable to controlling interests	$	291	$	361
		For the nine months ended September 30
(in millions)			2011		2010
Ongoing Earnings		$	757	$	756
Tax levelization			2		3
CVO mark-to-market, net of tax benefit of $13 (Note 10)			(46)		0
Impairment, net of tax benefit of $3			0		(5)
Plant retirement adjustment, net of tax expense of $1			0		1
Change in tax treatment of the Medicare Part D subsidy (Note 11)			0		(22)
Merger and integration costs, net of tax benefit of $11 (Note 2)			(36)		0
CR3 indemnification charge, net of tax benefit of $16 (Note 15B)			(22)		0
Continuing income attributable to noncontrolling interests, net of tax			5		4
Income from continuing operations			660		737
Discontinued operations, net of tax			(4)		(2)
Net income attributable to noncontrolling interests, net of tax			(5)		(4)
	Net income attributable to controlling interests	$	651	$	731