Condensed Consolidating Statements

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Statements Disclosure [Abstract]

Condensed consolidating financials

16.CONDENSED CONSOLIDATING STATEMENTS

As discussed in Note 23 in the 2010 Form 10-K, we have guaranteed certain payments of two 100 percent owned indirect subsidiaries, FPC Capital I (the Trust) and Florida Progress Funding Corporation (Funding Corp.). Our guarantees are joint and several, full and unconditional and are in addition to the joint and several, full and unconditional guarantees issued to the Trust and Funding Corp. by Florida Progress. Our subsidiaries have provisions restricting the payment of dividends to the Parent in certain limited circumstances, and as disclosed in Note 11B in the 2010 Form 10-K, there were no restrictions on PEC's or PEF's retained earnings.

The Trust is a VIE of which we are not the primary beneficiary. Separate financial statements and other disclosures concerning the Trust have not been presented because we believe that such information is not material to investors.

Presented below are the condensed consolidating Statements of Income, Balance Sheets and Statements of Cash Flows as required by Rule 3-10 of Regulation S-X. In these condensed consolidating statements, the Parent column includes the financial results of the parent holding company only. The Subsidiary Guarantor column includes the consolidated financial results of Florida Progress only, which is primarily comprised of its wholly owned subsidiary PEF. The Non-guarantor Subsidiaries column includes the consolidated financial results of all non-guarantor subsidiaries, which is primarily comprised of our wholly owned subsidiary PEC. The Other column includes elimination entries for all intercompany transactions and other consolidation adjustments. Financial statements for PEC and PEF are separately presented elsewhere in this Form 10-Q. All applicable corporate expenses have been allocated appropriately among the guarantor and non-guarantor subsidiaries. The financial information may not necessarily be indicative of results of operations or financial position had the Subsidiary Guarantor or other non-guarantor subsidiaries operated as independent entities.

Condensed Consolidating Statement of Income
Three months ended September 30, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	0	$	1,415	$	1,332	$	0	$	2,747
	Affiliate revenues			0		0		69		(69)		0
		Total operating revenues		0		1,415		1,401		(69)		2,747
Operating expenses
	Fuel used in electric generation			0		456		388		0		844
	Purchased power			0		232		117		0		349
	Operation and maintenance			2		221		332		(68)		487
	Depreciation, amortization and accretion			0		39		136		0		175
	Taxes other than on income			0		106		58		(1)		163
	Other			0		1		38		0		39
		Total operating expenses		2		1,055		1,069		(69)		2,057
Operating (loss) income				(2)		360		332		0		690
Other income (expense)
	Interest income			0		0		1		0		1
	Allowance for equity funds used during construction			0		7		15		0		22
	Other, net			(63)		(1)		(5)		(1)		(70)
		Total other (expense) income, net		(63)		6		11		(1)		(47)
Interest charges
	Interest charges			80		56		45		(1)		180
	Allowance for borrowed funds used during construction			0		(4)		(4)		0		(8)
		Total interest charges, net		80		52		41		(1)		172
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(145)		314		302		0		471
Income tax (benefit) expense				(45)		116		103		4		178
Equity in earnings of consolidated subsidiaries				391		0		0		(391)		0
Income from continuing operations				291		198		199		(395)		293
Discontinued operations, net of tax				0		1		(1)		0		0
Net income				291		199		198		(395)		293
Net income attributable to noncontrolling interests, net of tax				0		(1)		0		(1)		(2)
Net income attributable to controlling interests			$	291	$	198	$	198	$	(396)	$	291

Condensed Consolidating Statement of Income
Three months ended September 30, 2010
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	0	$	1,548	$	1,414	$	0	$	2,962
	Affiliate revenues			0		0		66		(66)		0
		Total operating revenues		0		1,548		1,480		(66)		2,962
Operating expenses
	Fuel used in electric generation			0		471		464		0		935
	Purchased power			0		309		109		0		418
	Operation and maintenance			2		234		301		(63)		474
	Depreciation, amortization and accretion			0		77		124		0		201
	Taxes other than on income			0		102		60		(1)		161
	Other			0		10		10		0		20
		Total operating expenses		2		1,203		1,068		(64)		2,209
Operating (loss) income				(2)		345		412		(2)		753
Other income (expense)
	Interest income			2		1		2		(2)		3
	Allowance for equity funds used during construction			0		5		17		0		22
	Other, net			0		(3)		(3)		1		(5)
		Total other income, net		2		3		16		(1)		20
Interest charges
	Interest charges			71		74		53		(1)		197
	Allowance for borrowed funds used during construction			0		(3)		(5)		0		(8)
		Total interest charges, net		71		71		48		(1)		189
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(71)		277		380		(2)		584
Income tax (benefit) expense				(25)		99		147		(2)		219
Equity in earnings of consolidated subsidiaries				406		0		0		(406)		0
Income from continuing operations before cumulative effect of change in accounting principle				360		178		233		(406)		365
Discontinued operations, net of tax				1		(1)		(2)		0		(2)
Cumulative effect of change in accounting principle, net of tax				0		0		2		0		2
Net income				361		177		233		(406)		365
Net income attributable to noncontrolling interests, net of tax				0		(1)		(2)		(1)		(4)
Net income attributable to controlling interests			$	361	$	176	$	231	$	(407)	$	361

Condensed Consolidating Statement of Income
Nine months ended September 30, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	0	$	3,645	$	3,525	$	0	$	7,170
	Affiliate revenues			0		0		204		(204)		0
		Total operating revenues		0		3,645		3,729		(204)		7,170
Operating expenses
	Fuel used in electric generation			0		1,159		1,077		0		2,236
	Purchased power			0		641		257		0		898
	Operation and maintenance			6		655		1,026		(196)		1,491
	Depreciation, amortization and accretion			0		112		396		0		508
	Taxes other than on income			0		274		168		(5)		437
	Other			0		(7)		38		0		31
		Total operating expenses		6		2,834		2,962		(201)		5,601
Operating (loss) income				(6)		811		767		(3)		1,569
Other income (expense)
	Interest income			0		1		1		0		2
	Allowance for equity funds used during construction			0		24		53		0		77
	Other, net			(59)		5		(7)		1		(60)
		Total other (expense) income, net		(59)		30		47		1		19
Interest charges
	Interest charges			216		204		149		(1)		568
	Allowance for borrowed funds used during construction			0		(11)		(15)		0		(26)
		Total interest charges, net		216		193		134		(1)		542
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(281)		648		680		(1)		1,046
Income tax (benefit) expense				(100)		240		243		3		386
Equity in earnings of consolidated subsidiaries				832		0		0		(832)		0
Income from continuing operations				651		408		437		(836)		660
Discontinued operations, net of tax				0		(2)		(2)		0		(4)
Net income				651		406		435		(836)		656
Net income attributable to noncontrolling interests, net of tax				0		(3)		0		(2)		(5)
Net income attributable to controlling interests			$	651	$	403	$	435	$	(838)	$	651

Condensed Consolidating Statement of Income
Nine months ended September 30, 2010
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	0	$	4,075	$	3,794	$	0	$	7,869
	Affiliate revenues			0		0		179		(179)		0
		Total operating revenues		0		4,075		3,973		(179)		7,869
Operating expenses
	Fuel used in electric generation			0		1,252		1,322		0		2,574
	Purchased power			0		761		235		0		996
	Operation and maintenance			5		647		977		(170)		1,459
	Depreciation, amortization and accretion			0		311		369		0		680
	Taxes other than on income			0		278		175		(5)		448
	Other			0		15		10		0		25
		Total operating expenses		5		3,264		3,088		(175)		6,182
Operating (loss) income				(5)		811		885		(4)		1,687
Other income (expense)
	Interest income			6		1		5		(6)		6
	Allowance for equity funds used during construction			0		23		45		0		68
	Other, net			(1)		0		(7)		3		(5)
		Total other income, net		5		24		43		(3)		69
Interest charges
	Interest charges			214		219		159		(5)		587
	Allowance for borrowed funds used during construction			0		(10)		(14)		0		(24)
		Total interest charges, net		214		209		145		(5)		563
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(214)		626		783		(2)		1,193
Income tax (benefit) expense				(83)		235		301		3		456
Equity in earnings of consolidated subsidiaries				861		0		0		(861)		0
Income from continuing operations				730		391		482		(866)		737
Discontinued operations, net of tax				1		0		(3)		0		(2)
Net income				731		391		479		(866)		735
Net (income) loss attributable to noncontrolling interests, net of tax				0		(3)		1		(2)		(4)
Net income attributable to controlling interests			$	731	$	388	$	480	$	(868)	$	731

Condensed Consolidating Balance Sheet
September 30, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Utility plant, net			$	0	$	10,351	$	11,578	$	86	$	22,015
Current assets
	Cash and cash equivalents			0		34		69		0		103
	Receivables, net			0		630		577		0		1,207
	Notes receivable from affiliated companies			97		27		138		(262)		0
	Regulatory assets			0		128		52		0		180
	Derivative collateral posted			0		98		14		0		112
	Prepayments and other current assets			131		816		1,062		(186)		1,823
		Total current assets		228		1,733		1,912		(448)		3,425
Deferred debits and other assets
	Investment in consolidated subsidiaries			14,196		0		0		(14,196)		0
	Regulatory assets			0		1,305		1,029		(1)		2,333
	Goodwill			0		0		0		3,655		3,655
	Nuclear decommissioning trust funds			0		520		992		0		1,512
	Other assets and deferred debits			94		215		907		(479)		737
		Total deferred debits and other assets		14,290		2,040		2,928		(11,021)		8,237
		Total assets	$	14,518	$	14,124	$	16,418	$	(11,383)	$	33,677
CAPITALIZATION AND LIABILITIES
Equity
	Common stock equity		$	10,112	$	4,874	$	5,650	$	(10,524)	$	10,112
	Noncontrolling interests			0		3		0		0		3
		Total equity		10,112		4,877		5,650		(10,524)		10,115
	Preferred stock of subsidiaries			0		34		59		0		93
	Long-term debt, affiliate			0		309		0		(36)		273
	Long-term debt, net			3,542		4,482		3,693		0		11,717
		Total capitalization		13,654		9,702		9,402		(10,560)		22,198
Current liabilities
	Current portion of long-term debt			450		0		500		0		950
	Short-term debt			45		0		0		0		45
	Notes payable to affiliated companies			0		259		3		(262)		0
	Derivative liabilities			35		175		93		0		303
	Other current liabilities			318		1,015		1,104		(187)		2,250
		Total current liabilities		848		1,449		1,700		(449)		3,548
Deferred credits and other liabilities
	Noncurrent income tax liabilities			0		863		1,902		(455)		2,310
	Regulatory liabilities			0		796		1,443		87		2,326
	Other liabilities and deferred credits			16		1,314		1,971		(6)		3,295
		Total deferred credits and other liabilities		16		2,973		5,316		(374)		7,931
		Total capitalization and liabilities	$	14,518	$	14,124	$	16,418	$	(11,383)	$	33,677

Condensed Consolidating Balance Sheet
December 31, 2010
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Utility plant, net			$	0	$	10,189	$	10,961	$	90	$	21,240
Current assets
	Cash and cash equivalents			110		270		231		0		611
	Receivables, net			0		497		536		0		1,033
	Notes receivable from affiliated companies			14		48		115		(177)		0
	Regulatory assets			0		105		71		0		176
	Derivative collateral posted			0		140		24		0		164
	Prepayments and other current assets			30		751		984		(273)		1,492
		Total current assets		154		1,811		1,961		(450)		3,476
Deferred debits and other assets
	Investment in consolidated subsidiaries			14,316		0		0		(14,316)		0
	Regulatory assets			0		1,387		987		0		2,374
	Goodwill			0		0		0		3,655		3,655
	Nuclear decommissioning trust funds			0		554		1,017		0		1,571
	Other assets and deferred debits			75		238		894		(469)		738
		Total deferred debits and other assets		14,391		2,179		2,898		(11,130)		8,338
		Total assets	$	14,545	$	14,179	$	15,820	$	(11,490)	$	33,054
CAPITALIZATION AND LIABILITIES
Equity
	Common stock equity		$	10,023	$	4,957	$	5,686	$	(10,643)	$	10,023
	Noncontrolling interests			0		4		0		0		4
		Total equity		10,023		4,961		5,686		(10,643)		10,027
	Preferred stock of subsidiaries			0		34		59		0		93
	Long-term debt, affiliate			0		309		0		(36)		273
	Long-term debt, net			3,989		4,182		3,693		0		11,864
		Total capitalization		14,012		9,486		9,438		(10,679)		22,257
Current liabilities
	Current portion of long-term debt			205		300		0		0		505
	Notes payable to affiliated companies			0		175		3		(178)		0
	Derivative liabilities			18		188		53		0		259
	Other current liabilities			278		1,002		1,184		(273)		2,191
		Total current liabilities		501		1,665		1,240		(451)		2,955
Deferred credits and other liabilities
	Noncurrent income tax liabilities			3		528		1,608		(443)		1,696
	Regulatory liabilities			0		1,084		1,461		90		2,635
	Other liabilities and deferred credits			29		1,416		2,073		(7)		3,511
		Total deferred credits and other liabilities		32		3,028		5,142		(360)		7,842
		Total capitalization and liabilities	$	14,545	$	14,179	$	15,820	$	(11,490)	$	33,054

Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2011
(in millions)	Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities	$	659	$	664	$	909	$	(928)	$	1,304
Investing activities
Gross property additions		0		(624)		(911)		0		(1,535)
Nuclear fuel additions		0		(13)		(121)		0		(134)
Purchases of available-for-sale securities and other investments		0		(4,099)		(437)		0		(4,536)
Proceeds from available-for-sale securities and other investments		0		4,101		408		0		4,509
Changes in advances to affiliated companies		(83)		22		(23)		84		0
Contributions to consolidated subsidiaries		(11)		0		0		11		0
Other investing activities		(6)		113		14		0		121
Net cash used by investing activities		(100)		(500)		(1,070)		95		(1,575)
Financing activities
Issuance of common stock, net		42		0		0		0		42
Dividends paid on common stock		(550)		0		0		0		(550)
Dividends paid to parent		0		(478)		(450)		928		0
Net increase in short-term debt		45		0		0		0		45
Proceeds from issuance of long-term debt, net		494		296		496		0		1,286
Retirement of long-term debt		(700)		(300)		0		0		(1,000)
Changes in advances from affiliated companies		0		84		0		(84)		0
Contributions from parent		0		10		1		(11)		0
Other financing activities		0		(12)		(48)		0		(60)
Net cash used by financing activities		(669)		(400)		(1)		833		(237)
Net decrease in cash and cash equivalents		(110)		(236)		(162)		0		(508)
Cash and cash equivalents at beginning of period		110		270		231		0		611
Cash and cash equivalents at end of period	$	0	$	34	$	69	$	0	$	103

Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2010
(in millions)	Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities	$	23	$	872	$	1,205	$	(196)	$	1,904
Investing activities
Gross property additions		0		(775)		(893)		25		(1,643)
Nuclear fuel additions		0		(32)		(132)		0		(164)
Purchases of available-for-sale securities and other investments		0		(5,461)		(466)		0		(5,927)
Proceeds from available-for-sale securities and other investments		0		5,464		451		0		5,915
Changes in advances to affiliated companies		(24)		(13)		242		(205)		0
Return of investment in consolidated subsidiaries		54		0		0		(54)		0
Contributions to consolidated subsidiaries		(56)		0		0		56		0
Other investing activities		0		16		0		(1)		15
Net cash used by investing activities		(26)		(801)		(798)		(179)		(1,804)
Financing activities
Issuance of common stock, net		419		0		0		0		419
Dividends paid on common stock		(535)		0		0		0		(535)
Dividends paid to parent		0		(102)		(75)		177		0
Dividends paid to parent in excess of retained earnings		0		0		(54)		54		0
Net decrease in short-term debt		(140)		0		0		0		(140)
Proceeds from issuance of long-term debt, net		0		591		0		0		591
Retirement of long-term debt		(100)		(300)		0		0		(400)
Changes in advances from affiliated companies		0		(205)		0		205		0
Contributions from parent		0		33		37		(70)		0
Other financing activities		0		(9)		(69)		9		(69)
Net cash (used) provided by financing activities		(356)		8		(161)		375		(134)
Net (decrease) increase in cash and cash equivalents		(359)		79		246		0		(34)
Cash and cash equivalents at beginning of period		606		72		47		0		725
Cash and cash equivalents at end of period	$	247	$	151	$	293	$	0	$	691