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Debt and Credit Facilities
6 Months Ended
Jun. 30, 2012
Debt And Credit Facilities Disclosure [Line Items]  
Debt and Credit Facilities

8.       DEBT AND CREDIT FACILITIES

Material changes, if any, to Progress Energy's, PEC's and PEF's debt and credit facilities and financing activities since December 31, 2011, are as follows.

On February 15, 2012, the Parent's $478 million revolving credit agreement (RCA) was amended to extend the expiration date from May 3, 2012, to May 3, 2013, with its existing syndication of 14 financial institutions.

On March 1, 2012, PEF's $425 million of 4.80% First Mortgage Bonds due March 1, 2013 was reclassified to current portion of long-term debt. PEF expects to fund this maturity with short-term borrowings and/or long-term debt issuances.

On March 8, 2012, the Parent issued $450 million of 3.15% Senior Notes due April 1, 2022. The net proceeds, along with available cash on hand, were used to retire the $450 million outstanding aggregate principal balance of our 6.85% Senior Notes due April 15, 2012.

On May 18, 2012, PEC issued $500 million of 2.80% First Mortgage Bonds due May 15, 2022 and $500 million of 4.10% First Mortgage Bonds due May 15, 2042. The net proceeds were used to retire at maturity the $500 million outstanding aggregate principal balance of PEC's 6.50% Notes due July 15, 2012, and a portion of PEC's outstanding commercial paper and notes payable to affiliated companies.

On July 2, 2012, the Parent terminated its $478 million RCA, and PEC and PEF terminated their respective $750 million RCAs and became borrowers under the Duke Energy Master Credit Facility (MCF). In November 2011, Duke Energy entered into a new $6.0 billion, five-year MCF, with $4.0 billion available at closing and the remaining $2.0 billion available following consummation of the merger. PEC and PEF each have borrowing capacity under the MCF up to $750 million. However, Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimit of each borrower, subject to a maximum sublimit of $1.0 billion for PEC and PEF. The Duke Energy MCF contains a covenant requiring the debt-to-total capitalization ratio to not exceed 65% for each borrower, including PEC and PEF. Indebtedness as defined by the Duke Energy MCF includes certain letters of credit, surety bonds and guarantees not recorded on the Consolidated Balance Sheets. Following the merger, the cash needs of the Parent will be funded with dividends from the Utilities generated from their earnings and cash flows, and to a lesser extent, dividends from other subsidiaries; borrowings under an intercompany note with Duke Energy; and/or equity contributions from Duke Energy.

PEC
 
Debt And Credit Facilities Disclosure [Line Items]  
Debt and Credit Facilities

8.       DEBT AND CREDIT FACILITIES

Material changes, if any, to Progress Energy's, PEC's and PEF's debt and credit facilities and financing activities since December 31, 2011, are as follows.

On May 18, 2012, PEC issued $500 million of 2.80% First Mortgage Bonds due May 15, 2022 and $500 million of 4.10% First Mortgage Bonds due May 15, 2042. The net proceeds were used to retire at maturity the $500 million outstanding aggregate principal balance of PEC's 6.50% Notes due July 15, 2012, and a portion of PEC's outstanding commercial paper and notes payable to affiliated companies.

On July 2, 2012, the Parent terminated its $478 million RCA, and PEC and PEF terminated their respective $750 million RCAs and became borrowers under the Duke Energy Master Credit Facility (MCF). In November 2011, Duke Energy entered into a new $6.0 billion, five-year MCF, with $4.0 billion available at closing and the remaining $2.0 billion available following consummation of the merger. PEC and PEF each have borrowing capacity under the MCF up to $750 million. However, Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimit of each borrower, subject to a maximum sublimit of $1.0 billion for PEC and PEF. The Duke Energy MCF contains a covenant requiring the debt-to-total capitalization ratio to not exceed 65% for each borrower, including PEC and PEF. Indebtedness as defined by the Duke Energy MCF includes certain letters of credit, surety bonds and guarantees not recorded on the Consolidated Balance Sheets. Following the merger, the cash needs of the Parent will be funded with dividends from the Utilities generated from their earnings and cash flows, and to a lesser extent, dividends from other subsidiaries; borrowings under an intercompany note with Duke Energy; and/or equity contributions from Duke Energy.

PEF
 
Debt And Credit Facilities Disclosure [Line Items]  
Debt and Credit Facilities

8.       DEBT AND CREDIT FACILITIES

Material changes, if any, to Progress Energy's, PEC's and PEF's debt and credit facilities and financing activities since December 31, 2011, are as follows.

 

On March 1, 2012, PEF's $425 million of 4.80% First Mortgage Bonds due March 1, 2013 was reclassified to current portion of long-term debt. PEF expects to fund this maturity with short-term borrowings and/or long-term debt issuances.

On July 2, 2012, the Parent terminated its $478 million RCA, and PEC and PEF terminated their respective $750 million RCAs and became borrowers under the Duke Energy Master Credit Facility (MCF). In November 2011, Duke Energy entered into a new $6.0 billion, five-year MCF, with $4.0 billion available at closing and the remaining $2.0 billion available following consummation of the merger. PEC and PEF each have borrowing capacity under the MCF up to $750 million. However, Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimit of each borrower, subject to a maximum sublimit of $1.0 billion for PEC and PEF. The Duke Energy MCF contains a covenant requiring the debt-to-total capitalization ratio to not exceed 65% for each borrower, including PEC and PEF. Indebtedness as defined by the Duke Energy MCF includes certain letters of credit, surety bonds and guarantees not recorded on the Consolidated Balance Sheets. Following the merger, the cash needs of the Parent will be funded with dividends from the Utilities generated from their earnings and cash flows, and to a lesser extent, dividends from other subsidiaries; borrowings under an intercompany note with Duke Energy; and/or equity contributions from Duke Energy.