Financial Information by Business Segment

3 Months Ended

Mar. 31, 2012

Financial Information By Business Segment Disclosure [Abstract]

Financial Information by Business Segment

12.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 March 31, 2012
Revenues
	Unaffiliated	$	1,085	$	1,005	$	2	$	-	$	2,092
	Intersegment		-		-		59		(59)		-
	Total revenues		1,085		1,005		61		(59)		2,092
Ongoing Earnings			60		130		(47)		-		143
Total assets			16,424		14,732		21,248		(16,429)		35,975
For the three months ended March 31, 2011
Revenues
	Unaffiliated	$	1,133	$	1,032	$	2	$	-	$	2,167
	Intersegment		-		-		74		(74)		-
	Total revenues		1,133		1,032		76		(74)		2,167
Ongoing Earnings			139		111		(48)		-		202

Management uses the non-GAAP financial measure “Ongoing Earnings” as a performance measure to evaluate the results of our segments and operations. Ongoing Earnings as presented here may not be comparable to similarly titled measures used by other companies. 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, which increases 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; and CVO mark-to-market adjustments because we are unable to predict changes in their fair value. Additionally, management does not consider 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.

A reconciliation of consolidated Ongoing Earnings to net income attributable to controlling interests follows:

(in millions)		2012		2011
Ongoing Earnings		$	143	$	202
Tax levelization			(7)		(2)
CVO mark-to-market			8		-
Merger and integration costs, net of tax benefit of $2 and $- (Note 2)			(5)		(14)
Continuing income attributable to noncontrolling interests, net of tax			2		1
Income from continuing operations			141		187
Discontinued operations, net of tax			11		(2)
Net income attributable to noncontrolling interests, net of tax			(2)		(1)
	Net income attributable to controlling interests	$	150	$	184