(Commission File
Number)
|
Exact names of registrants as specified in their charters, address of principal executive offices, telephone number and state of incorporation
|
(IRS Employer
Identification No.)
|
1-15929
|
PROGRESS ENERGY, INC.
|
56-2155481
|
410 S. Wilmington Street
|
||
Raleigh, North Carolina 27601-1748
|
||
Telephone: (919) 546-6111
|
||
State of Incorporation: North Carolina
|
||
1-3382
|
CAROLINA POWER & LIGHT COMPANY
|
56-0165465
|
d/b/a Progress Energy Carolinas, Inc.
|
||
410 S. Wilmington Street
|
||
Raleigh, North Carolina 27601-1748
|
||
Telephone: (919) 546-6111
|
||
State of Incorporation: North Carolina
|
||
1-3274
|
FLORIDA POWER CORPORATION
|
59-0247770
|
d/b/a Progress Energy Florida, Inc.
|
||
299 First Avenue North
|
||
St. Petersburg, Florida 33701
|
||
Telephone: (727) 820-5151
|
||
State of Incorporation: Florida
|
None
|
(Former Name or Former Address, if Changed Since Last Report)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
99.1
|
Press Release dated August 2, 2012, with respect to financial results for the quarter ended June 30, 2012.
|
PROGRESS ENERGY, INC.
|
||
CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC.
|
||
FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC.
|
||
Date: August 2, 2012
|
Registrants
|
|
By:
|
/s/ Steven K. Young
|
|
Steven K. Young
|
||
Vice President, Chief Accounting Officer and Controller
|
||
Exhibit No.
|
Description
|
99.1
|
Press Release dated August 2, 2012, with respect to financial results for the quarter ended June 30, 2012.
|
¨
|
Reports second-quarter GAAP earnings of $0.21 per share, compared to $0.60 per share for the same period last year, primarily due to higher O&M expense resulting from an additional extended nuclear refueling outage in the Carolinas and higher depreciation and amortization expense
|
¨
|
Reports second-quarter ongoing earnings of $80 million, or $0.27 per share, compared to $211 million, or $0.71 per share, for the same period last year, primarily due to higher O&M expense, higher depreciation and amortization expense and the unfavorable impact of weather
|
¨
|
Reports GAAP earnings for the first six months of 2012 of $0.72 per share, compared to $1.22 per share for the same period last year, primarily due to higher O&M expense resulting from two additional extended nuclear refueling outages in the Carolinas, higher depreciation and amortization expense and the unfavorable impact of weather, partially offset by PEF’s lower estimated future joint owner replacement power costs in Florida
|
¨
|
Reports ongoing earnings for the first six months of 2012 of $223 million, or $0.75 per share, compared to $413 million, or $1.40 per share, for the same period last year, primarily due to higher O&M expense in the Carolinas, higher depreciation and amortization expense and the unfavorable impact of weather
|
·
|
Reported second-quarter ongoing earnings per share of $0.14, compared with $0.37 for the same period last year; GAAP earnings per share of $0.11, compared with $0.36 for the same period last year.
|
·
|
Reported primary quarter-over-quarter ongoing earnings per share favorability of:
|
§
|
$0.02 retail growth and usage
|
§
|
$0.02 clauses and other margin primarily due to increased spending on new and existing demand-side management (DSM) programs
|
§
|
$0.01 wholesale
|
·
|
Reported primary quarter-over-quarter ongoing earnings per share unfavorability of:
|
§
|
$(0.18) O&M primarily due to higher nuclear plant outage costs resulting from an additional extended nuclear refueling outage, higher substation and line maintenance costs related to a reliability initiative, and higher employee benefit expenses
|
§
|
$(0.05) weather primarily due to 22 percent lower cooling-degree days
|
§
|
$(0.02) depreciation and amortization primarily due to higher depreciable asset base driven by placing the combined-cycle unit at the Smith Energy Complex in service in June 2011
|
§
|
$(0.01) allowance for funds used during construction (AFUDC) equity
|
§
|
$(0.01) interest expense
|
§
|
$(0.01) other
|
·
|
12,000 net increase in the average number of customers for the three months ended June 30, 2012, compared to the same period in 2011
|
·
|
Reported second-quarter ongoing earnings per share of $0.29, compared with $0.48 for the same period last year; GAAP earnings per share of $0.28, compared with $0.38 for the same period last year.
|
·
|
Reported primary quarter-over-quarter ongoing earnings per share favorability of:
|
§
|
$0.02 clauses and other margin primarily due to higher open access transmission tariff rates
|
§
|
$0.01 wholesale
|
§
|
$0.01 AFUDC equity
|
·
|
Reported primary quarter-over-quarter ongoing earnings per share unfavorability of:
|
§
|
$(0.10) depreciation and amortization primarily due to the prior-year reduction in the cost of removal component of amortization expense as allowed under the 2010 settlement agreement
|
§
|
$(0.05) O&M primarily due to the recognition of expense of previously deferred costs associated with the non-selected vendor for the Crystal River Nuclear Plant Unit 3 (CR3) repair option
|
§
|
$(0.04) weather primarily due to 11 percent lower cooling-degree days
|
§
|
$(0.02) other primarily due to higher property taxes
|
§
|
$(0.01) interest expense
|
§
|
$(0.01) income taxes
|
·
|
12,000 net increase in the average number of customers for the three months ended June 30, 2012, compared to the same period in 2011
|
·
|
Reported second-quarter ongoing after-tax expenses of $0.16 per share, compared with after-tax expenses of $0.14 per share for the same period last year; GAAP after-tax expenses of $0.18 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 unfavorability of:
|
§
|
$(0.01) income taxes
|
§
|
$(0.01) other
|
·
|
Reported year-to-date ongoing earnings per share of $0.35, compared with $0.85 for the same period last year; GAAP earnings per share of $0.28, compared with $0.80 for the same period last year.
|
·
|
Reported primary year-to-date ongoing earnings per share favorability of:
|
§
|
$0.04 retail growth and usage
|
§
|
$0.03 clauses and other margin primarily due to increased spending on new and existing DSM programs
|
·
|
Reported primary year-to-date ongoing earnings per share unfavorability of:
|
§
|
$(0.34) O&M primarily due to higher nuclear plant outage costs resulting from two additional extended nuclear refueling outages, higher employee benefit expenses and higher substation and line maintenance costs related to a reliability initiative
|
§
|
$(0.15) weather primarily due to 24 percent lower heating-degree days and 16 percent lower cooling-degree days
|
§
|
$(0.04) depreciation and amortization primarily due to higher depreciable asset base driven by placing the combined-cycle unit at the Smith Energy Complex in service in June 2011
|
§
|
$(0.02) AFUDC equity primarily due to placing the previously mentioned combined-cycle unit in service
|
§
|
$(0.02) interest expense primarily due to higher average long-term debt outstanding
|
·
|
10,000 net increase in the average number of customers for the six months ended June 30, 2012, compared to the same period in 2011
|
·
|
Reported year-to-date ongoing earnings per share of $0.72, compared with $0.85 for the same period last year; GAAP earnings per share of $0.71, compared with $0.72 for the same period last year.
|
·
|
Reported primary year-to-date ongoing earnings per share favorability of:
|
§
|
$0.06 clauses and other margin primarily due to an indemnification charge for the prior-year joint owner replacement power costs related to the continued outage at CR3
|
§
|
$0.03 wholesale primarily due to a new contract with a major customer
|
§
|
$0.03 O&M primarily due to the reversal of certain regulatory liabilities associated with CR3 in accordance with the 2012 settlement agreement, partially offset by the recognition of expense of previously deferred costs associated with the non-selected vendor for the CR3 repair option
|
·
|
Reported primary year-to-date ongoing earnings per share unfavorability of:
|
§
|
$(0.15) depreciation and amortization primarily due to the smaller reduction in the cost of removal component of amortization expense as allowed under the 2012 and 2010 settlement agreements
|
§
|
$(0.06) other primarily due to a prior-year favorable litigation settlement and higher property taxes
|
§
|
$(0.04) weather primarily due to 31 percent lower heating-degree days and 1 percent lower cooling-degree days
|
·
|
11,000 net increase in the average number of customers for the six months ended June 30, 2012, compared to the same period in 2011
|
·
|
Reported year-to-date ongoing after-tax expenses of $0.32 per share, compared with after-tax expenses of $0.30 per share for the same period last year; GAAP after-tax expenses of $0.27 per share, compared with after-tax expenses of $0.30 per share for the same period last year.
|
·
|
Reported primary year-to-date ongoing after-tax expenses per share favorability of:
|
§
|
$0.01 interest expense
|
·
|
Reported primary year-to-date ongoing after-tax expenses per share unfavorability of:
|
§
|
$(0.02) income taxes primarily due to the impact at the Corporate level resulting from the deductions for domestic production activities taken by the Utilities
|
§
|
$(0.01) other
|
Progress Energy, Inc.
Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share
|
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Ongoing earnings per share
|
$ | 0.27 | $ | 0.71 | $ | 0.75 | $ | 1.40 | ||||||||
Tax levelization
|
(0.02 | ) | (0.01 | ) | (0.04 | ) | (0.02 | ) | ||||||||
Discontinued operations
|
(0.02 | ) | - | 0.02 | (0.01 | ) | ||||||||||
CR3 indemnification adjustment (charge)
|
0.02 | (0.09 | ) | 0.02 | (0.09 | ) | ||||||||||
Merger and integration costs
|
(0.04 | ) | (0.02 | ) | (0.06 | ) | (0.07 | ) | ||||||||
CVO mark-to-market
|
- | 0.01 | 0.03 | 0.01 | ||||||||||||
Reported GAAP earnings per share
|
$ | 0.21 | $ | 0.60 | $ | 0.72 | $ | 1.22 | ||||||||
Shares outstanding (millions)
|
297 | 296 | 297 | 295 |
·
|
the impact of compliance with material restrictions of conditions related to the Duke Energy merger imposed by our regulators could exceed our expectations;
|
·
|
our ability to successfully integrate our business with Duke Energy and realize cost savings and any other synergies expected from the merger;
|
·
|
our ability to maintain relationships with customers, employees or suppliers post-merger;
|
·
|
the scope of necessary repairs of the delamination of our Crystal River Unit No. 3 Nuclear Plant (CR3) could prove more extensive than is currently identified, such repairs could prove not to be feasible, the cost of repair and/or replacement power could exceed our estimates and insurance coverage or may not be recoverable through the regulatory process, and could result in the early retirement of the unit;
|
·
|
the impact of fluid and complex laws and regulations, including those relating to the environment and energy policy;
|
·
|
our ability to recover eligible costs and earn an adequate return on investment through the regulatory process;
|
·
|
our ability to successfully operate electric generating facilities and deliver electricity to customers;
|
·
|
the impact on our facilities and businesses from a terrorist attack, cyber security threats and other catastrophic events;
|
·
|
our 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;
|
·
|
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, safety, regulatory and financial risks;
|
·
|
the financial resources and capital needed to comply with environmental laws and regulations;
|
·
|
risks associated with climate change;
|
·
|
weather and drought conditions that directly influence the production, delivery and demand for electricity;
|
·
|
recurring seasonal fluctuations in demand for electricity;
|
·
|
our ability to recover in a timely manner, if at all, costs associated with future significant weather events through the regulatory process;
|
·
|
fluctuations in the price of energy commodities and purchased power and our ability to recover such costs through the regulatory process;
|
·
|
the Progress Registrants’ ability to control costs, including operations and maintenance (O&M) expense and large construction projects;
|
·
|
our subsidiaries’ ability to pay upstream dividends or distributions to Progress Energy, Inc. holding company (the Parent);
|
·
|
current economic conditions;
|
·
|
our 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 or reductions in cash flow may have on each of the Progress Registrants;
|
·
|
the Progress Registrants’ ability to maintain their current credit ratings and the impacts in the event their credit ratings are downgraded;
|
·
|
the investment performance of our nuclear decommissioning trust (NDT) 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;
|
·
|
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 (Section 29/45K); and
|
·
|
the outcome of any ongoing or future litigation or similar disputes and the impact of any such outcome or related settlements.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of COMPREHENSIVE INCOME
|
||||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||||||
(in millions except per share data)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating revenues
|
$ | 2,273 | $ | 2,256 | $ | 4,365 | $ | 4,423 | ||||||||
Operating expenses
|
||||||||||||||||
Fuel used in electric generation
|
736 | 674 | 1,421 | 1,392 | ||||||||||||
Purchased power
|
257 | 329 | 467 | 549 | ||||||||||||
Operation and maintenance
|
627 | 510 | 1,156 | 1,004 | ||||||||||||
Depreciation, amortization and accretion
|
231 | 179 | 397 | 333 | ||||||||||||
Taxes other than on income
|
142 | 134 | 280 | 274 | ||||||||||||
Other
|
5 | 2 | 5 | (8 | ) | |||||||||||
Total operating expenses
|
1,998 | 1,828 | 3,726 | 3,544 | ||||||||||||
Operating income
|
275 | 428 | 639 | 879 | ||||||||||||
Other income
|
||||||||||||||||
Interest income
|
1 | - | 2 | 1 | ||||||||||||
Allowance for equity funds used during construction
|
25 | 26 | 49 | 55 | ||||||||||||
Other, net
|
1 | 7 | 14 | 10 | ||||||||||||
Total other income, net
|
27 | 33 | 65 | 66 | ||||||||||||
Interest charges
|
||||||||||||||||
Interest charges
|
203 | 189 | 397 | 388 | ||||||||||||
Allowance for borrowed funds used during construction
|
(11 | ) | (9 | ) | (20 | ) | (18 | ) | ||||||||
Total interest charges, net
|
192 | 180 | 377 | 370 | ||||||||||||
Income from continuing operations before income tax
|
110 | 281 | 327 | 575 | ||||||||||||
Income tax expense
|
42 | 101 | 118 | 208 | ||||||||||||
Income from continuing operations
|
68 | 180 | 209 | 367 | ||||||||||||
Discontinued operations, net of tax
|
(4 | ) | (2 | ) | 7 | (4 | ) | |||||||||
Net income
|
64 | 178 | 216 | 363 | ||||||||||||
Net income attributable to noncontrolling interests, net of tax
|
(1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Net income attributable to controlling interests
|
$ | 63 | $ | 176 | $ | 213 | $ | 360 | ||||||||
Average common shares outstanding – basic
|
297 | 296 | 297 | 295 | ||||||||||||
Basic and diluted earnings per common share
|
||||||||||||||||
Income from continuing operations attributable to controlling
interests, net of tax
|
$ | 0.23 | $ | 0.60 | $ | 0.70 | $ | 1.23 | ||||||||
Discontinued operations attributable to controlling interests, net of tax
|
(0.02 | ) | - | 0.02 | (0.01 | ) | ||||||||||
Net income attributable to controlling interests
|
$ | 0.21 | $ | 0.60 | $ | 0.72 | $ | 1.22 | ||||||||
Dividends declared per common share
|
$ | 0.620 | $ | 0.620 | $ | 1.240 | $ | 1.240 | ||||||||
Net income amounts attributable to controlling interests
|
||||||||||||||||
Income from continuing operations, net of tax
|
$ | 67 | $ | 178 | $ | 206 | $ | 364 | ||||||||
Discontinued operations, net of tax
|
(4 | ) | (2 | ) | 7 | (4 | ) | |||||||||
Net income attributable to controlling interests
|
$ | 63 | $ | 176 | $ | 213 | $ | 360 | ||||||||
Comprehensive income
|
||||||||||||||||
Comprehensive income
|
$ | 60 | $ | 157 | $ | 217 | $ | 346 | ||||||||
Comprehensive income attributable to noncontrolling interests,
net of tax
|
(1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Comprehensive income attributable to controlling interests
|
$ | 59 | $ | 155 | $ | 214 | $ | 343 | ||||||||
PROGRESS ENERGY, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(in millions)
|
June 30, 2012
|
December 31, 2011
|
||||||
ASSETS
|
||||||||
Utility plant
|
||||||||
Utility plant in service
|
$ | 31,601 | $ | 31,065 | ||||
Accumulated depreciation
|
(12,151 | ) | (12,001 | ) | ||||
Utility plant in service, net
|
19,450 | 19,064 | ||||||
Other utility plant, net
|
272 | 217 | ||||||
Construction work in progress
|
2,711 | 2,449 | ||||||
Nuclear fuel, net of amortization
|
759 | 767 | ||||||
Total utility plant, net
|
23,192 | 22,497 | ||||||
Current assets
|
||||||||
Cash and cash equivalents
|
73 | 230 | ||||||
Receivables, net
|
849 | 889 | ||||||
Inventory, net
|
1,427 | 1,438 | ||||||
Regulatory assets
|
302 | 275 | ||||||
Derivative collateral posted
|
124 | 147 | ||||||
Deferred tax assets
|
508 | 371 | ||||||
Prepayments and other current assets
|
104 | 133 | ||||||
Total current assets
|
3,387 | 3,483 | ||||||
Deferred debits and other assets
|
||||||||
Regulatory assets
|
2,954 | 3,025 | ||||||
Nuclear decommissioning trust funds
|
1,757 | 1,647 | ||||||
Miscellaneous other property and investments
|
411 | 407 | ||||||
Goodwill
|
3,655 | 3,655 | ||||||
Other assets and deferred debits
|
368 | 345 | ||||||
Total deferred debits and other assets
|
9,145 | 9,079 | ||||||
Total assets
|
$ | 35,724 | $ | 35,059 | ||||
CAPITALIZATION AND LIABILITIES
|
||||||||
Common stock equity
|
||||||||
Common stock without par value, 500 million shares authorized, 296
million and 295 million shares issued and outstanding, respectively
|
$ | 7,465 | $ | 7,434 | ||||
Accumulated other comprehensive loss
|
(164 | ) | (165 | ) | ||||
Retained earnings
|
2,596 | 2,752 | ||||||
Total common stock equity
|
9,897 | 10,021 | ||||||
Noncontrolling interests
|
3 | 4 | ||||||
Total equity
|
9,900 | 10,025 | ||||||
Preferred stock of subsidiaries
|
93 | 93 | ||||||
Long-term debt, affiliate
|
273 | 273 | ||||||
Long-term debt, net
|
12,739 | 11,718 | ||||||
Total capitalization
|
23,005 | 22,109 | ||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
925 | 950 | ||||||
Short-term debt
|
345 | 671 | ||||||
Accounts payable
|
907 | 909 | ||||||
Interest accrued
|
197 | 200 | ||||||
Dividends declared
|
1 | 78 | ||||||
Customer deposits
|
342 | 340 | ||||||
Derivative liabilities
|
326 | 436 | ||||||
Accrued compensation and other benefits
|
168 | 195 | ||||||
Other current liabilities
|
359 | 306 | ||||||
Total current liabilities
|
3,570 | 4,085 | ||||||
Deferred credits and other liabilities
|
||||||||
Noncurrent income tax liabilities
|
2,670 | 2,355 | ||||||
Accumulated deferred investment tax credits
|
99 | 103 | ||||||
Regulatory liabilities
|
2,612 | 2,700 | ||||||
Asset retirement obligations
|
1,299 | 1,265 | ||||||
Accrued pension and other benefits
|
1,656 | 1,625 | ||||||
Capital lease obligations
|
310 | 200 | ||||||
Derivative liabilities
|
300 | 352 | ||||||
Other liabilities and deferred credits
|
203 | 265 | ||||||
Total deferred credits and other liabilities
|
9,149 | 8,865 | ||||||
Commitments and contingencies
|
||||||||
Total capitalization and liabilities
|
$ | 35,724 | $ | 35,059 |
PROGRESS ENERGY, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS
|
||||||||
(in millions)
|
||||||||
Six months ended June 30
|
2012
|
2011
|
||||||
Operating activities
|
||||||||
Net income
|
$ | 216 | $ | 363 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation, amortization and accretion
|
481 | 425 | ||||||
Deferred income taxes and investment tax credits, net
|
169 | 178 | ||||||
Deferred fuel credit
|
(79 | ) | (29 | ) | ||||
Allowance for equity funds used during construction
|
(49 | ) | (55 | ) | ||||
Other adjustments to net income
|
39 | 167 | ||||||
Cash (used) provided by changes in operating assets and liabilities
|
||||||||
Receivables
|
(9 | ) | (5 | ) | ||||
Inventory
|
8 | (127 | ) | |||||
Other assets
|
14 | 16 | ||||||
Income taxes, net
|
1 | 56 | ||||||
Accounts payable
|
70 | 1 | ||||||
Accrued pension and other benefits
|
(74 | ) | (259 | ) | ||||
Other liabilities
|
(36 | ) | 49 | |||||
Net cash provided by operating activities
|
751 | 780 | ||||||
Investing activities
|
||||||||
Gross property additions
|
(1,080 | ) | (1,004 | ) | ||||
Nuclear fuel additions
|
(65 | ) | (93 | ) | ||||
Purchases of available-for-sale securities and other investments
|
(625 | ) | (3,387 | ) | ||||
Proceeds from available-for-sale securities and other investments
|
610 | 3,364 | ||||||
Other investing activities
|
81 | 82 | ||||||
Net cash used by investing activities
|
(1,079 | ) | (1,038 | ) | ||||
Financing activities
|
||||||||
Issuance of common stock, net
|
6 | 26 | ||||||
Dividends paid on common stock
|
(446 | ) | (366 | ) | ||||
Payments of short-term debt with original maturities greater than 90 days
|
(65 | ) | - | |||||
Proceeds from issuance of short-term debt with original maturities greater than 90 days
|
65 | - | ||||||
Net (decrease) increase in short-term debt
|
(326 | ) | 314 | |||||
Proceeds from issuance of long-term debt, net
|
1,432 | 494 | ||||||
Retirement of long-term debt
|
(450 | ) | (700 | ) | ||||
Other financing activities
|
(45 | ) | (69 | ) | ||||
Net cash provided (used) by financing activities
|
171 | (301 | ) | |||||
Net decrease in cash and cash equivalents
|
(157 | ) | (559 | ) | ||||
Cash and cash equivalents at beginning of period
|
230 | 611 | ||||||
Cash and cash equivalents at end of period
|
$ | 73 | $ | 52 |
Progress Energy, Inc. |
SUPPLEMENTAL DATA - Page S-1
|
Unaudited
|
Earnings Variances
|
||||||||||||||||||
Second Quarter 2012 vs. 2011
|
||||||||||||||||||
Regulated Utilities
|
||||||||||||||||||
($ per share)
|
Carolinas
|
Florida
|
Corporate and
Other Businesses
|
Consolidated
|
||||||||||||||
2011 GAAP earnings
|
0.36 | 0.38 | (0.14 | ) | 0.60 | |||||||||||||
Tax levelization
|
0.01 | 0.01 | A | |||||||||||||||
Merger and integration costs
|
0.01 | 0.01 | 0.02 | B | ||||||||||||||
CVO mark-to-market
|
(0.01 | ) | (0.01 | ) | C | |||||||||||||
CR3 indemnification charge
|
0.09 | 0.09 | D | |||||||||||||||
2011 ongoing earnings
|
0.37 | 0.48 | (0.14 | ) | 0.71 | |||||||||||||
Weather - retail
|
(0.05 | ) | (0.04 | ) | (0.09 | ) | E | |||||||||||
Growth and usage - retail
|
0.02 | 0.02 | ||||||||||||||||
Wholesale
|
0.01 | 0.01 | 0.02 | |||||||||||||||
Clauses and other margin
|
0.02 | 0.02 | 0.04 | F | ||||||||||||||
O&M
|
(0.18 | ) | (0.05 | ) | (0.23 | ) | G | |||||||||||
Other
|
(0.01 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | H | |||||||||
AFUDC equity
|
(0.01 | ) | 0.01 | - | ||||||||||||||
Depreciation and amortization
|
(0.02 | ) | (0.10 | ) | (0.12 | ) | I | |||||||||||
Interest expense
|
(0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||
Income taxes
|
(0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||
2012 ongoing earnings
|
0.14 | 0.29 | (0.16 | ) | 0.27 | |||||||||||||
Tax levelization
|
(0.01 | ) | (0.01 | ) | (0.02 | ) | A | |||||||||||
Discontinued operations
|
(0.02 | ) | (0.02 | ) | ||||||||||||||
CR3 indemnification adjustment
|
0.02 | 0.02 | D | |||||||||||||||
Merger and integration costs
|
(0.02 | ) | (0.02 | ) | (0.04 | ) | B | |||||||||||
2012 GAAP earnings
|
0.11 | 0.28 | (0.18 | ) | 0.21 |
Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, purchase accounting transactions and corporate eliminations.
|
|||||
Certain line items presented gross on the Consolidated Statements of Comprehensive Income are netted in this analysis to highlight earnings drivers.
|
A -
|
Tax levelization impact, related to cyclical nature of energy demand/earnings and various permanent items of income or deduction.
|
|||||
B -
|
Impact of merger and integration costs related to the merger with Duke Energy.
|
|||||
C -
|
Corporate and Other - Impact of change in fair value of CVOs not held by Progress Energy.
|
|||||
D -
|
Florida - Impact of CR3 indemnification charge, and subsequent adjustments, for estimated future years' joint owner replacement power costs (through the expiration of the indemnification provisions of the joint owner agreement).
|
|||||
E -
|
See S-3 for impact of retail weather to normal on EPS.
|
|||||
Carolinas - Unfavorable primarily due to 22 percent lower cooling-degree days.
|
||||||
Florida - Unfavorable primarily due to 11 percent lower cooling-degree days.
|
||||||
F -
|
Carolinas - Favorable primarily due to increased spending on new and existing demand-side management programs.
|
|||||
Florida - Favorable primarily due to higher open access transmission tariff rates.
|
||||||
G -
|
Carolinas - Unfavorable primarily due to higher nuclear plant outage costs resulting from an additional extended nuclear refueling outage, higher substation and line maintenance costs related to a reliability initiative and higher employee benefit expenses.
|
|||||
Florida - Unfavorable primarily due to the recognition of expense of previously deferred costs associated with the non-selected vendor for the CR3 repair option.
|
||||||
H -
|
Florida - Unfavorable primarily due to higher property taxes.
|
|||||
I -
|
Carolinas - Unfavorable primarily due to higher depreciable asset base driven by placing the combined-cycle unit at the Smith Energy Complex in service in June 2011.
|
|||||
Florida - Unfavorable primarily due to the prior-year reduction in the cost of removal component of amortization expense as allowed under the 2010 settlement agreement.
|
Progress Energy, Inc.
|
SUPPLEMENTAL DATA - Page S-2
|
Unaudited
|
Earnings Variances
|
||||||||||||||||||
Year-to-Date June 30, 2012 vs. 2011
|
||||||||||||||||||
Regulated Utilities | ||||||||||||||||||
($ per share)
|
Carolinas | Florida |
Corporate and
Other Businesses
|
Consolidated | ||||||||||||||
2011 GAAP earnings
|
0.80 | 0.72 | (0.30 | ) | 1.22 | |||||||||||||
Tax levelization
|
0.01 | 0.01 | 0.02 | A | ||||||||||||||
Discontinued operations
|
0.01 | 0.01 | ||||||||||||||||
Merger and integration costs
|
0.04 | 0.03 | 0.07 | B | ||||||||||||||
CVO mark-to-market
|
(0.01 | ) | (0.01 | ) | C | |||||||||||||
CR3 indemnification charge
|
0.09 | 0.09 | D | |||||||||||||||
2011 ongoing earnings
|
0.85 | 0.85 | (0.30 | ) | 1.40 | |||||||||||||
Weather - retail
|
(0.15 | ) | (0.04 | ) | (0.19 | ) | E | |||||||||||
Growth and usage - retail
|
0.04 | 0.04 | ||||||||||||||||
Wholesale
|
0.03 | 0.03 | F | |||||||||||||||
Clauses and other margin
|
0.03 | 0.06 | 0.09 | G | ||||||||||||||
O&M
|
(0.34 | ) | 0.03 | (0.31 | ) | H | ||||||||||||
Other
|
(0.06 | ) | (0.01 | ) | (0.07 | ) | I | |||||||||||
AFUDC equity
|
(0.02 | ) | (0.02 | ) | J | |||||||||||||
Depreciation and amortization
|
(0.04 | ) | (0.15 | ) | (0.19 | ) | K | |||||||||||
Interest expense
|
(0.02 | ) | 0.01 | (0.01 | ) | L | ||||||||||||
Income taxes
|
(0.02 | ) | (0.02 | ) | M | |||||||||||||
2012 ongoing earnings
|
0.35 | 0.72 | (0.32 | ) | 0.75 | |||||||||||||
Tax levelization
|
(0.03 | ) | (0.01 | ) | (0.04 | ) | A | |||||||||||
Discontinued operations
|
0.02 | 0.02 | ||||||||||||||||
Merger and integration costs
|
(0.04 | ) | (0.02 | ) | (0.06 | ) | B | |||||||||||
CVO mark-to-market
|
0.03 | 0.03 | C | |||||||||||||||
CR3 indemnification adjustment
|
0.02 | 0.02 | D | |||||||||||||||
2012 GAAP earnings
|
0.28 | 0.71 | (0.27 | ) | 0.72 |
Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, purchase accounting transactions and corporate eliminations.
|
|||
Certain line items presented gross on the Consolidated Statements of Comprehensive Income are netted in this analysis to highlight earnings drivers.
|
A -
|
Tax levelization impact, related to cyclical nature of energy demand/earnings and various permanent items of income or deduction.
|
|||
B -
|
Impact of merger and integration costs related to the merger with Duke Energy.
|
|||
C -
|
Corporate and Other - Impact of change in fair value of CVOs not held by Progress Energy.
|
|||
D -
|
Florida - Impact of CR3 indemnification charge, and subsequent adjustments, for estimated future years' joint owner replacement power costs (through the expiration of the indemnification provisions of the joint owner agreement).
|
|||
E -
|
See S-4 for impact of retail weather to normal on EPS.
|
|||
Carolinas - Unfavorable primarily due to 24 percent lower heating-degree days and 16 percent lower cooling-degree days.
|
||||
Florida - Unfavorable primarily due to 31 percent lower heating-degree days and 1 percent lower cooling-degree days.
|
||||
F -
|
Florida - Favorable primarily due to a new contract with a major customer.
|
|||
G -
|
Carolinas - Favorable primarily due to increased spending on new and existing demand-side management programs.
|
|||
Florida - Favorable primarily due to an indemnification charge for the prior-year joint owner replacement power costs related to the continued outage at CR3.
|
||||
H -
|
Carolinas - Unfavorable primarily due to higher nuclear plant outage costs resulting from two additional extended nuclear refueling outages, higher employee benefit expenses and higher substation and line maintenance costs related to a reliability initiative.
|
|||
Florida - Favorable primarily due to the reversal of certain regulatory liabilities associated with CR3 in accordance with the 2012 settlement agreement, partially offset by the recognition of expense of previously deferred costs associated with the non-selected vendor for the CR3 repair option.
|
||||
I -
|
Florida - Unfavorable primarily due to a prior-year favorable litigation settlement and higher property taxes.
|
|||
J -
|
AFUDC equity is presented gross of tax as it is excluded from the calculation of income tax expense.
|
|||
Carolinas - Unfavorable primarily due to placing the combined-cycle unit at the Smith Energy Complex in service in June 2011.
|
||||
K -
|
Carolinas - Unfavorable primarily due to higher depreciable asset base driven by placing the previously mentioned combined-cycle unit in service.
|
|||
Florida - Unfavorable primarily due to the smaller reduction in the cost of removal component of amortization expense as allowed under the 2012 and 2010 settlement agreements.
|
||||
L -
|
Carolinas - Unfavorable primarily due to higher average long-term debt outstanding.
|
|||
M -
|
Corporate and Other - Unfavorable primarily due to the impact at the Corporate level resulting from the deductions for domestic production activities taken by the Utilities.
|
Progress Energy, Inc.
|
SUPPLEMENTAL DATA - Page S-3
|
Unaudited - Data is not weather-adjusted
|
Utility Statistics |
Three Months Ended
|
Three Months Ended
|
Percentage Change
|
||||||||||||||||||||||||||||||
June 30, 2012 | June 30, 2011 |
From June 30, 2011
|
||||||||||||||||||||||||||||||
Operating Revenues (in millions)
|
Carolinas
|
Florida
|
Total
Utilities
|
Carolinas
|
Florida
|
Total
Utilities
|
Carolinas
|
Florida
|
||||||||||||||||||||||||
Residential
|
$ | 228 | $ | 232 | $ | 460 | $ | 248 | $ | 240 | $ | 488 | (8.1 | ) % | (3.3 | ) % | ||||||||||||||||
Commercial
|
169 | 89 | 258 | 174 | 91 | 265 | (2.9 | ) | (2.2 | ) | ||||||||||||||||||||||
Industrial
|
86 | 19 | 105 | 88 | 19 | 107 | (2.3 | ) | - | |||||||||||||||||||||||
Governmental
|
13 | 23 | 36 | 15 | 23 | 38 | (13.3 | ) | - | |||||||||||||||||||||||
Unbilled
|
16 | 17 | 33 | 7 | 27 | 34 |
NM
|
NM
|
||||||||||||||||||||||||
Total retail base revenues
|
512 | 380 | 892 | 532 | 400 | 932 | (3.8 | ) | (5.0 | ) | ||||||||||||||||||||||
Wholesale base revenues
|
82 | 34 | 116 | 71 | 29 | 100 | 15.5 | 17.2 | ||||||||||||||||||||||||
Total base revenues
|
594 | 414 | 1,008 | 603 | 429 | 1,032 | (1.5 | ) | (3.5 | ) | ||||||||||||||||||||||
Clause-recoverable regulatory returns
|
11 | 44 | 55 | 7 | 46 | 53 | 57.1 | (4.3 | ) | |||||||||||||||||||||||
Miscellaneous
|
33 | 65 | 98 | 32 | 56 | 88 | 3.1 | 16.1 | ||||||||||||||||||||||||
Fuel and other pass-through revenues
|
444 | 666 | 1,110 | 418 | 662 | 1,080 |
NM
|
NM
|
||||||||||||||||||||||||
Total operating revenues
|
$ | 1,082 | $ | 1,189 | $ | 2,271 | $ | 1,060 | $ | 1,193 | $ | 2,253 | 2.1 | % | (0.3 | ) % | ||||||||||||||||
Energy Sales (millions of kWh)
|
||||||||||||||||||||||||||||||||
Residential
|
3,544 | 4,525 | 8,069 | 3,907 | 4,681 | 8,588 | (9.3 | ) % | (3.3 | ) % | ||||||||||||||||||||||
Commercial
|
3,354 | 2,961 | 6,315 | 3,440 | 3,032 | 6,472 | (2.5 | ) | (2.3 | ) | ||||||||||||||||||||||
Industrial
|
2,683 | 808 | 3,491 | 2,682 | 849 | 3,531 | - | (4.8 | ) | |||||||||||||||||||||||
Governmental
|
381 | 813 | 1,194 | 374 | 822 | 1,196 | 1.9 | (1.1 | ) | |||||||||||||||||||||||
Unbilled
|
198 | 397 | 595 | 74 | 664 | 738 |
NM
|
NM
|
||||||||||||||||||||||||
Total retail kWh sales
|
10,160 | 9,504 | 19,664 | 10,477 | 10,048 | 20,525 | (3.0 | ) | (5.4 | ) | ||||||||||||||||||||||
Wholesale
|
3,306 | 433 | 3,739 | 2,969 | 808 | 3,777 | 11.4 | (46.4 | ) | |||||||||||||||||||||||
Total kWh sales
|
13,466 | 9,937 | 23,403 | 13,446 | 10,856 | 24,302 | 0.1 | % | (8.5 | ) % | ||||||||||||||||||||||
Energy Supply (millions of kWh)
|
||||||||||||||||||||||||||||||||
Generated
|
||||||||||||||||||||||||||||||||
Steam
|
4,987 | 3,531 | 8,518 | 4,941 | 3,710 | 8,651 | ||||||||||||||||||||||||||
Nuclear
|
5,086 | - | 5,086 | 6,170 | - | 6,170 | ||||||||||||||||||||||||||
Combustion turbines/combined cycle
|
2,463 | 5,146 | 7,609 | 1,850 | 5,592 | 7,442 | ||||||||||||||||||||||||||
Hydro
|
172 | - | 172 | 182 | - | 182 | ||||||||||||||||||||||||||
Purchased
|
1,308 | 1,981 | 3,289 | 981 | 2,384 | 3,365 | ||||||||||||||||||||||||||
Total energy supply (company share)
|
14,016 | 10,658 | 24,674 | 14,124 | 11,686 | 25,810 | ||||||||||||||||||||||||||
Impact of Weather to Normal on Retail Sales
|
||||||||||||||||||||||||||||||||
Heating-degree days
|
||||||||||||||||||||||||||||||||
Actual
|
166 | 9 | 144 | 10 | 15.3 | % | (10.0 | ) % | ||||||||||||||||||||||||
Normal
|
210 | 24 | 216 | 24 | ||||||||||||||||||||||||||||
Cooling-degree days
|
||||||||||||||||||||||||||||||||
Actual
|
583 | 973 | 749 | 1,093 | (22.2 | ) % | (11.0 | ) % | ||||||||||||||||||||||||
Normal
|
586 | 944 | 570 | 944 | ||||||||||||||||||||||||||||
Impact of retail weather to normal on EPS
|
$ | (0.01 | ) | $ | 0.00 | $ | (0.01 | ) | $ | 0.04 | $ | 0.04 | $ | 0.08 | ||||||||||||||||||
NM - not meaningful
|
Progress Energy, Inc.
|
SUPPLEMENTAL DATA - Page S-4
|
Unaudited - Data is not weather-adjusted
|
Utility Statistics |
Six Months Ended | Six Months Ended |
Percentage Change
|
||||||||||||||||||||||||||||||
June 30, 2012 | June 30, 2011 |
From June 30, 2011
|
||||||||||||||||||||||||||||||
Operating Revenues (in millions)
|
Carolinas
|
Florida
|
Total
Utilities
|
Carolinas
|
Florida
|
Total
Utilities
|
Carolinas
|
Florida
|
||||||||||||||||||||||||
Residential
|
$ | 505 | $ | 424 | $ | 929 | $ | 580 | $ | 459 | $ | 1,039 | (12.9 | ) % | (7.6 | ) % | ||||||||||||||||
Commercial
|
331 | 167 | 498 | 341 | 169 | 510 | (2.9 | ) | (1.2 | ) | ||||||||||||||||||||||
Industrial
|
165 | 36 | 201 | 171 | 37 | 208 | (3.5 | ) | (2.7 | ) | ||||||||||||||||||||||
Governmental
|
27 | 44 | 71 | 30 | 43 | 73 | (10.0 | ) | 2.3 | |||||||||||||||||||||||
Unbilled
|
9 | 29 | 38 | (28 | ) | 12 | (16 | ) |
NM
|
NM
|
||||||||||||||||||||||
Total retail base revenues
|
1,037 | 700 | 1,737 | 1,094 | 720 | 1,814 | (5.2 | ) | (2.8 | ) | ||||||||||||||||||||||
Wholesale base revenues
|
151 | 68 | 219 | 144 | 55 | 199 | 4.9 | 23.6 | ||||||||||||||||||||||||
Total base revenues
|
1,188 | 768 | 1,956 | 1,238 | 775 | 2,013 | (4.0 | ) | (0.9 | ) | ||||||||||||||||||||||
Clause-recoverable regulatory returns
|
22 | 93 | 115 | 14 | 91 | 105 | 57.1 | 2.2 | ||||||||||||||||||||||||
Miscellaneous
|
67 | 118 | 185 | 63 | 106 | 169 | 6.3 | 11.3 | ||||||||||||||||||||||||
Fuel and other pass-through revenues
|
890 | 1,215 | 2,105 | 878 | 1,253 | 2,131 |
NM
|
NM
|
||||||||||||||||||||||||
Total operating revenues
|
$ | 2,167 | $ | 2,194 | $ | 4,361 | $ | 2,193 | $ | 2,225 | $ | 4,418 | (1.2 | ) % | (1.4 | ) % | ||||||||||||||||
Energy Sales (millions of kWh)
|
||||||||||||||||||||||||||||||||
Residential
|
7,979 | 8,230 | 16,209 | 9,346 | 8,962 | 18,308 | (14.6 | ) % | (8.2 | ) % | ||||||||||||||||||||||
Commercial
|
6,470 | 5,526 | 11,996 | 6,727 | 5,578 | 12,305 | (3.8 | ) | (0.9 | ) | ||||||||||||||||||||||
Industrial
|
5,112 | 1,565 | 6,677 | 5,170 | 1,621 | 6,791 | (1.1 | ) | (3.5 | ) | ||||||||||||||||||||||
Governmental
|
744 | 1,566 | 2,310 | 760 | 1,549 | 2,309 | (2.1 | ) | 1.1 | |||||||||||||||||||||||
Unbilled
|
65 | 731 | 796 | (595 | ) | 309 | (286 | ) |
NM
|
NM
|
||||||||||||||||||||||
Total retail kWh sales
|
20,370 | 17,618 | 37,988 | 21,408 | 18,019 | 39,427 | (4.8 | ) | (2.2 | ) | ||||||||||||||||||||||
Wholesale
|
6,264 | 731 | 6,995 | 6,178 | 1,286 | 7,464 | 1.4 | (43.2 | ) | |||||||||||||||||||||||
Total kWh sales
|
26,634 | 18,349 | 44,983 | 27,586 | 19,305 | 46,891 | (3.5 | ) % | (5.0 | ) % | ||||||||||||||||||||||
Energy Supply (millions of kWh)
|
||||||||||||||||||||||||||||||||
Generated
|
||||||||||||||||||||||||||||||||
Steam
|
10,181 | 6,162 | 16,343 | 11,377 | 6,452 | 17,829 | ||||||||||||||||||||||||||
Nuclear
|
9,758 | - | 9,758 | 12,351 | - | 12,351 | ||||||||||||||||||||||||||
Combustion turbines/combined cycle
|
5,080 | 10,113 | 15,193 | 2,782 | 10,477 | 13,259 | ||||||||||||||||||||||||||
Hydro
|
390 | - | 390 | 363 | - | 363 | ||||||||||||||||||||||||||
Purchased
|
2,377 | 3,418 | 5,795 | 2,028 | 3,813 | 5,841 | ||||||||||||||||||||||||||
Total energy supply (company share)
|
27,786 | 19,693 | 47,479 | 28,901 | 20,742 | 49,643 | ||||||||||||||||||||||||||
Impact of Weather to Normal on Retail Sales
|
||||||||||||||||||||||||||||||||
Heating-degree days
|
||||||||||||||||||||||||||||||||
Actual
|
1,384 | 211 | 1,827 | 305 | (24.2 | ) % | (30.8 | ) % | ||||||||||||||||||||||||
Normal
|
1,915 | 299 | 1,917 | 299 | ||||||||||||||||||||||||||||
Cooling-degree days
|
||||||||||||||||||||||||||||||||
Actual
|
642 | 1,298 | 764 | 1,310 | (16.0 | ) % | (0.9 | ) % | ||||||||||||||||||||||||
Normal
|
599 | 1,159 | 582 | 1,159 | ||||||||||||||||||||||||||||
Impact of retail weather to normal on EPS
|
$ | (0.11 | ) | $ | 0.01 | $ | (0.10 | ) | $ | 0.04 | $ | 0.05 | $ | 0.09 | ||||||||||||||||||
NM - not meaningful
|
Progress Energy, Inc.
|
SUPPLEMENTAL DATA - Page S-5
|
Unaudited
|
O&M Expenses Primarily Recoverable through Base Rates (a)
|
||||||||||||||||
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Reported GAAP O&M
|
$ | 627 | $ | 510 | $ | 1,156 | $ | 1,004 | ||||||||
Adjustments
|
||||||||||||||||
Carolinas
|
||||||||||||||||
Fuel clauses
|
(6 | ) | (7 | ) | (14 | ) | (14 | ) | ||||||||
Environmental clause
|
(1 | ) | - | (1 | ) | (1 | ) | |||||||||
DSM/EE and REPS cost recovery clauses (b)
|
(9 | ) | (7 | ) | (19 | ) | (15 | ) | ||||||||
Florida
|
||||||||||||||||
Energy conservation cost recovery clause (ECCR)
|
(22 | ) | (23 | ) | (41 | ) | (46 | ) | ||||||||
Environmental cost recovery clause (ECRC)
|
(10 | ) | (11 | ) | (18 | ) | (20 | ) | ||||||||
Nuclear cost recovery
|
- | (1 | ) | (1 | ) | (2 | ) | |||||||||
O&M Expenses Primarily Recoverable through Base Rates
|
$ | 579 | $ | 461 | $ | 1,062 | $ | 906 |
(a) | The preceding table provides a reconciliation of reported GAAP O&M to O&M Primarily Recoverable through Base Rates. O&M Primarily Recoverable through Base Rates excludes certain expenses that are recovered through cost-recovery clauses which have no material impact on earnings. Management believes this presentation is appropriate and enables investors to more accurately compare the company's O&M expense over the periods presented. O&M Primarily Recoverable through Base Rates as presented here may not be comparable to similarly titled measures used by other companies. |
(b) | DSM = Demand-side management |
EE = Energy efficiency | |
REPS = Renewable energy portfolio standard |
Financial Statistics
|
||||||||||
|
June 30, 2012
|
|
June 30, 2011 | |||||||
Return on average common stock equity (rolling 12 months) (a)
|
4.3 | % | 8.4 | % | ||||||
Book value per common share (a)
|
$ | 33.29 | $ | 33.95 | ||||||
Capitalization
|
||||||||||
Total equity
|
40.2 | % | 43.5 | % | ||||||
Preferred stock of subsidiaries
|
0.4 | % | 0.4 | % | ||||||
Total debt
|
59.4 | % | 56.1 | % | ||||||
Total Capitalization
|
100.0 | % | 100.0 | % |
(a) |
Effective July 2, 2012, each outstanding share of Progress Energy common stock was converted into 0.87083 shares of Duke Energy stock.
|