Commission File Number
|
Exact name of registrants as specified in their charters, states of incorporation, addresses of principal executive offices,
and telephone numbers
|
I.R.S. Employer Identification Number
|
1-15929
|
Progress Energy, Inc.
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
Telephone: (704) 382-3853
State of Incorporation: North Carolina
|
56-2155481
|
1-3382
|
Carolina Power & Light Company
d/b/a Progress Energy Carolinas, Inc.
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
Telephone: (704) 382-3853
State of Incorporation: North Carolina
|
56-0165465
|
1-3274
|
Florida Power Corporation
d/b/a Progress Energy Florida, Inc.
299 First Avenue North
St. Petersburg, Florida 33701
Telephone: (704) 382-3853
State of Incorporation: Florida
|
59-0247770
|
Progress Energy, Inc. (Progress Energy)
|
Yes
|
x
|
No
|
o
|
Carolina Power & Light Company (PEC)
|
Yes
|
x
|
No
|
o
|
Florida Power Corporation (PEF)
|
Yes
|
x
|
No
|
o
|
Progress Energy
|
Yes
|
x
|
No
|
o
|
PEC
|
Yes
|
x
|
No
|
o
|
PEF
|
Yes
|
x
|
No
|
o
|
Progress Energy
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
PEC
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
x
|
Smaller reporting company
|
o
|
|
PEF
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
x
|
Smaller reporting company
|
o
|
Progress Energy
|
Yes
|
o
|
No
|
x
|
PEC
|
Yes
|
o
|
No
|
x
|
PEF
|
Yes
|
o
|
No
|
x
|
Registrant
|
Description
|
Shares
|
Progress Energy
|
Common Stock (Par Value $0.01)
|
100 (all of which were held directly by Duke Energy Corporation)
|
PEC
|
Common Stock (Without Par Value)
|
159,608,055 (all of which were held directly by Progress Energy, Inc.)
|
PEF
|
Common Stock (Without Par Value)
|
100 (all of which were held indirectly by Progress Energy, Inc.)
|
TABLE OF CONTENTS
|
||
2
|
||
PART I. FINANCIAL INFORMATION
|
||
ITEM 1.
|
4
|
|
Unaudited Condensed Interim Financial Statements
|
||
Progress Energy, Inc. (Progress Energy)
|
||
4
|
||
5
|
||
6
|
||
7
|
||
Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. (PEC)
|
||
8
|
||
9
|
||
10
|
||
11
|
||
Florida Power Corporation d/b/a Progress Energy Florida, Inc. (PEF)
|
||
12
|
||
13
|
||
14
|
||
15
|
||
16
|
||
18
|
||
21
|
||
23
|
||
30
|
||
36
|
||
38
|
||
38
|
||
48
|
||
52
|
||
57
|
||
58
|
||
62
|
||
63
|
||
64
|
||
65
|
||
66
|
||
ITEM 2.
|
75
|
|
ITEM 3.
|
90
|
|
ITEM 4.
|
91
|
|
PART II. OTHER INFORMATION
|
||
ITEM 1.
|
91
|
|
ITEM 1A.
|
91
|
|
ITEM 6.
|
92
|
|
94
|
·
|
State and federal legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, as well as rulings that affect cost and investment recovery or have an impact on rate structures;
|
·
|
The ability to recover eligible costs and earn an adequate return on investment through the regulatory process;
|
·
|
The scope of necessary repairs of the delamination of Crystal River Unit 3 Nuclear Plant (CR3) could prove more extensive or costly than is currently identified, such repairs could prove not to be feasible resulting in early retirement of the unit, the cost of repair and/or replacement power could exceed estimates and insurance coverage or may not be recoverable through the regulatory process;
|
·
|
The ability to maintain relationships with customers, employees or suppliers post-merger;
|
·
|
The ability to successfully integrate with Duke Energy businesses and realize cost savings and any other synergies expected from the merger;
|
·
|
The risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect;
|
·
|
The impact of compliance with material restrictions of conditions related to the Duke Energy merger imposed by regulators could exceed our expectations;
|
·
|
Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
|
·
|
Industrial, commercial and residential growth or decline in PEC’s or PEF’s service territories, customer base or customer usage patterns;
|
·
|
Additional competition in electric markets and continued industry consolidation;
|
·
|
The influence of weather and other natural phenomena on each of PEC’s and PEF’s operations, including the economic, operational and other effects of storms, hurricanes, droughts and tornadoes;
|
·
|
The ability to successfully operate electric generating facilities and deliver electricity to customers;
|
·
|
The ability to recover, in a timely manner, if at all, costs associated with future significant weather events through the regulatory process;
|
·
|
The impact on our facilities and business from a terrorist attack, cyber security threats and other catastrophic events;
|
·
|
The inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks;
|
·
|
The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate;
|
·
|
Unscheduled generation outages, unusual maintenance or repairs and electric transmission system constraints;
|
·
|
The results of financing efforts, including the Progress Energy Registrants’ ability to obtain financing on favorable terms, which can be affected by various factors, including the respective Progress Energy Registrants’ credit ratings and general economic conditions;
|
·
|
Declines in the market prices of equity securities and resultant cash funding requirements for our defined benefit pension plans and nuclear decommissioning trust funds;
|
·
|
The level of creditworthiness of counterparties to our transactions;
|
·
|
Employee workforce factors, including the potential inability to attract and retain key personnel;
|
·
|
Growth in opportunities for the respective Progress Energy Registrants’ business units;
|
·
|
Construction and development risks associated with the completion of our capital investment projects in existing and new generation facilities, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from ratepayers in a timely manner or at all;
|
·
|
The effect of accounting pronouncements issued periodically by accounting standard-setting bodies; and
|
·
|
The impact of potential goodwill impairments.
|
ITEM 1. | FINANCIAL STATEMENTS |
PROGRESS ENERGY, INC.
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating revenues
|
|
|
|
|
||||||||||||
Regulated electric
|
$ | 2,775 | $ | 2,743 | $ | 7,135 | $ | 7,161 | ||||||||
Non-regulated electric and other
|
13 | 10 | 43 | 35 | ||||||||||||
Total operating revenues
|
2,788 | 2,753 | 7,178 | 7,196 | ||||||||||||
Operating expenses
|
||||||||||||||||
Fuel used in electric generation and purchased power
|
1,396 | 1,234 | 3,299 | 3,186 | ||||||||||||
Operation, maintenance and other
|
626 | 494 | 1,798 | 1,500 | ||||||||||||
Depreciation and amortization
|
174 | 175 | 571 | 508 | ||||||||||||
Property and other taxes
|
160 | 164 | 440 | 437 | ||||||||||||
Impairment charges
|
55 | - | 55 | - | ||||||||||||
Total operating expenses
|
2,411 | 2,067 | 6,163 | 5,631 | ||||||||||||
Gains on sales of other assets and other, net
|
2 | 1 | 4 | 2 | ||||||||||||
Operating income
|
379 | 687 | 1,019 | 1,567 | ||||||||||||
Other income and expenses, net
|
32 | (44 | ) | 97 | 21 | |||||||||||
Interest expense, net
|
182 | 172 | 560 | 542 | ||||||||||||
Income from continuing operations before income taxes
|
229 | 471 | 556 | 1,046 | ||||||||||||
Income tax expense from continuing operations
|
75 | 178 | 193 | 386 | ||||||||||||
Income from continuing operations
|
154 | 293 | 363 | 660 | ||||||||||||
Income (loss) from discontinued operations, net of tax
|
3 | - | 10 | (4 | ) | |||||||||||
Net income
|
157 | 293 | 373 | 656 | ||||||||||||
Less: net income attributable to noncontrolling interests
|
2 | 2 | 5 | 5 | ||||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 155 | $ | 291 | $ | 368 | $ | 651 | ||||||||
Net income amounts attributable to Duke Energy Corporation
|
||||||||||||||||
Income from continuing operations, net of tax
|
$ | 152 | $ | 291 | $ | 358 | $ | 655 | ||||||||
Discontinued operations, net of tax
|
3 | - | 10 | (4 | ) | |||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 155 | $ | 291 | $ | 368 | $ | 651 | ||||||||
Comprehensive income, net of tax
|
||||||||||||||||
Comprehensive income
|
$ | 255 | $ | 228 | $ | 472 | $ | 574 | ||||||||
Comprehensive income attributable to noncontrolling interests,
net of tax
|
(2 | ) | (2 | ) | (5 | ) | (5 | ) | ||||||||
Comprehensive income attributable to Duke Energy Corporation
|
$ | 253 | $ | 226 | $ | 467 | $ | 569 |
See Notes to Progress Energy, Inc. Unaudited Condensed Consolidated Interim Financial Statements
|
PROGRESS ENERGY, INC.
|
||||||||
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
ASSETS
|
|
|
||||||
Current assets
|
|
|
||||||
Cash and cash equivalents
|
$ | 57 | $ | 230 | ||||
Receivables, (net of allowance of $13 at September 30, 2012, and
$27 at December 31, 2011)
|
930 | 883 | ||||||
Receivables from affiliated companies
|
24 | - | ||||||
Inventory
|
1,366 | 1,429 | ||||||
Regulatory assets
|
226 | 275 | ||||||
Deferred tax assets
|
326 | 371 | ||||||
Prepayments and other current assets
|
97 | 132 | ||||||
Total current assets
|
3,026 | 3,320 | ||||||
Investments and other assets
|
||||||||
Nuclear decommissioning trust funds
|
1,844 | 1,647 | ||||||
Goodwill
|
3,655 | 3,655 | ||||||
Intangibles
|
30 | 36 | ||||||
Other
|
502 | 468 | ||||||
Total investments and other assets
|
6,031 | 5,806 | ||||||
Property, plant and equipment
|
||||||||
Cost
|
36,844 | 34,797 | ||||||
Cost, variable interest entities
|
16 | 16 | ||||||
Accumulated depreciation and amortization
|
(12,857 | ) | (12,684 | ) | ||||
Generation facilities to be retired, net
|
164 | 163 | ||||||
Net property, plant and equipment
|
24,167 | 22,292 | ||||||
Regulatory assets and deferred debits
|
||||||||
Regulatory assets | 3,331 | 3,424 | ||||||
Other
|
96 | 89 | ||||||
Total regulatory assets and deferred debits
|
3,427 | 3,513 | ||||||
Total assets
|
$ | 36,651 | $ | 34,931 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 835 | $ | 968 | ||||
Payables to affiliated companies
|
29 | - | ||||||
Notes payable and commercial paper
|
- | 671 | ||||||
Notes payable to affiliated companies
|
635 | - | ||||||
Taxes accrued
|
233 | 56 | ||||||
Interest accrued
|
187 | 200 | ||||||
Customer deposits
|
341 | 340 | ||||||
Derivative liabilities
|
209 | 382 | ||||||
Current maturities of long-term debt
|
838 | 961 | ||||||
Other
|
429 | 441 | ||||||
Total current liabilities
|
3,736 | 4,019 | ||||||
Long-term debt
|
12,664 | 11,918 | ||||||
Long-term debt, affiliate
|
274 | 273 | ||||||
Deferred credits and other liabilities
|
||||||||
Deferred income taxes
|
2,509 | 2,193 | ||||||
Investment tax credits
|
97 | 103 | ||||||
Accrued pension and other post-retirement benefit costs
|
1,724 | 1,625 | ||||||
Asset retirement obligations
|
2,137 | 1,265 | ||||||
Regulatory liabilities
|
2,704 | 2,727 | ||||||
Other
|
560 | 690 | ||||||
Total deferred credits and other liabilities
|
9,731 | 8,603 | ||||||
Commitments and contingencies
|
||||||||
Preferred stock of subsidiaries
|
93 | 93 | ||||||
Equity
|
||||||||
Common stock $0.01 par value, 100 shares authorized, issued and outstanding at
September 30, 2012; no par value, 500 million shares authorized, 295 million shares
issued and outstanding at December 31, 2011
|
- | 7,418 | ||||||
Additional paid-in capital
|
7,465 | 16 | ||||||
Retained earnings
|
2,751 | 2,752 | ||||||
Accumulated other comprehensive loss
|
(66 | ) | (165 | ) | ||||
Total common shareholders' equity
|
10,150 | 10,021 | ||||||
Noncontrolling interests
|
3 | 4 | ||||||
Total equity
|
10,153 | 10,025 | ||||||
Total liabilities and equity
|
$ | 36,651 | $ | 34,931 | ||||
|
|
|||||||
See Notes to Progress Energy, Inc. Unaudited Condensed Consolidated Interim Financial Statements
|
PROGRESS ENERGY, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS
|
||||||||
(in millions)
|
|
|
||||||
Nine months ended September 30
|
2012
|
2011
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||||
Net income
|
$ | 373 | $ | 656 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization (including amortization of nuclear fuel)
|
678 | 621 | ||||||
Equity component of AFUDC
|
(77 | ) | (77 | ) | ||||
Severance expense
|
39 | - | ||||||
FERC mitigation costs
|
71 | - | ||||||
Community support and charitable contributions expense
|
40 | - | ||||||
Amount to be refunded to customers (Note 4B)
|
100 | - | ||||||
Gains on sales of other assets
|
(21 | ) | - | |||||
Deferred income taxes
|
257 | 430 | ||||||
Contributions to qualified pension plans
|
(122 | ) | (313 | ) | ||||
Accrued pension and other post-retirement benefit costs
|
137 | 89 | ||||||
(Increase) decrease in
|
||||||||
Net realized and unrealized mark-to-market and hedging transactions
|
(12 | ) | 37 | |||||
Receivables
|
(97 | ) | (109 | ) | ||||
Receivables from affiliate
|
(24 | ) | - | |||||
Inventory
|
60 | (151 | ) | |||||
Other current assets
|
(6 | ) | (62 | ) | ||||
Increase (decrease) in
|
||||||||
Accounts payable
|
6 | (95 | ) | |||||
Payables to affiliate
|
29 | - | ||||||
Taxes accrued
|
175 | 156 | ||||||
Other current liabilities
|
(15 | ) | 16 | |||||
Other assets
|
- | (48 | ) | |||||
Other liabilities
|
(141 | ) | 108 | |||||
Net cash provided by operating activities
|
1,450 | 1,258 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(1,695 | ) | (1,647 | ) | ||||
Purchases of available-for-sale securities
|
(947 | ) | (4,537 | ) | ||||
Proceeds from sales and maturities of available-for-sale securities
|
921 | 4,509 | ||||||
Insurance proceeds
|
7 | 78 | ||||||
Change in restricted cash
|
24 | (7 | ) | |||||
Other
|
81 | 29 | ||||||
Net cash used by investing activities
|
(1,609 | ) | (1,575 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from the:
|
||||||||
Issuance of long-term debt
|
1,432 | 1,286 | ||||||
Issuance of common stock related to employee benefit plans
|
6 | 42 | ||||||
Payments for the redemption of long-term debt
|
(961 | ) | (1,010 | ) | ||||
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 | - | ||||||
Notes payable and commercial paper
|
(671 | ) | 45 | |||||
Distributions to noncontrolling interests
|
(6 | ) | (6 | ) | ||||
Dividends paid
|
(445 | ) | (550 | ) | ||||
Notes payable to affiliate
|
635 | - | ||||||
Other
|
(4 | ) | 2 | |||||
Net cash used in financing activities
|
(14 | ) | (191 | ) | ||||
Net decrease in cash and cash equivalents
|
(173 | ) | (508 | ) | ||||
Cash and cash equivalents at beginning of period
|
230 | 611 | ||||||
Cash and cash equivalents at end of period
|
$ | 57 | $ | 103 | ||||
Supplemental disclosures
|
||||||||
Significant noncash transactions
|
||||||||
Accrued capital expenditures
|
$ | 250 | $ | 329 | ||||
Asset retirement obligation additions
|
813 | 3 | ||||||
Capital expenditures financed through capital leases
|
137 | - |
|
PROGRESS ENERGY, INC.
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
Accumulated Other
Comprehensive (Loss) Income
|
|
|
|
||||||||||||||||||||||||||
(in millions)
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Net (Losses)
Gains on
Cash Flow
Hedges
|
Pension and
OPEB Related Adjustments
|
Common Stockholders' Equity
|
Noncontrolling Interests
|
Total
Equity
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance, December 31, 2010
|
$ | 7,332 | $ | 11 | $ | 2,805 | $ | (63 | ) | $ | (62 | ) | $ | 10,023 | $ | 4 | $ | 10,027 | ||||||||||||||
Net income(a)
|
- | - | 651 | - | - | 651 | 2 | 653 | ||||||||||||||||||||||||
Other comprehensive loss
|
- | - | - | (77 | ) | (5 | ) | (82 | ) | - | (82 | ) | ||||||||||||||||||||
Issuance of shares
|
42 | - | - | - | - | 42 | - | 42 | ||||||||||||||||||||||||
Stock-based compensation expense
|
24 | 4 | - | - | - | 28 | - | 28 | ||||||||||||||||||||||||
Dividends declared
|
- | - | (550 | ) | - | - | (550 | ) | - | (550 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests
|
- | - | - | - | - | - | (3 | ) | (3 | ) | ||||||||||||||||||||||
Balance, September 30, 2011
|
$ | 7,398 | $ | 15 | $ | 2,906 | $ | (140 | ) | $ | (67 | ) | $ | 10,112 | $ | 3 | $ | 10,115 | ||||||||||||||
Balance, December 31, 2011
|
$ | 7,418 | $ | 16 | $ | 2,752 | $ | (143 | ) | $ | (22 | ) | $ | 10,021 | $ | 4 | $ | 10,025 | ||||||||||||||
Net income(a)
|
- | - | 368 | - | - | 368 | 2 | 370 | ||||||||||||||||||||||||
Other comprehensive income
|
- | - | - | 99 | - | 99 | - | 99 | ||||||||||||||||||||||||
Issuance of shares
|
6 | - | - | - | - | 6 | - | 6 | ||||||||||||||||||||||||
Stock-based compensation expense
|
12 | 13 | - | - | - | 25 | - | 25 | ||||||||||||||||||||||||
Dividends declared
|
- | - | (369 | ) | - | - | (369 | ) | - | (369 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests
|
- | - | - | - | - | - | (2 | ) | (2 | ) | ||||||||||||||||||||||
Issuance of 100 shares of $0.01 par value
common shares to Duke Energy
|
(7,436 | ) | 7,436 | - | - | - | - | - | - | |||||||||||||||||||||||
Other
|
- | - | - | - | - | - | (1 | ) | (1 | ) | ||||||||||||||||||||||
Balance, September 30, 2012
|
$ | - | $ | 7,465 | $ | 2,751 | $ | (44 | ) | $ | (22 | ) | $ | 10,150 | $ | 3 | $ | 10,153 |
(a)
|
For the nine months ended September 30, 2012, consolidated net income of $373 million includes $3 million attributable to preferred shareholders of subsidiaries. For the nine months ended September 30, 2011, consolidated net income of $656 million includes $3 million attributable to preferred shareholders of subsidiaries. Income attributable to preferred shareholders of subsidiaries is not a component of total equity and is excluded from the table above.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
See Notes to Progress Energy, Inc. Unaudited Condensed Consolidated Interim Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
CAROLINA POWER & LIGHT COMPANY
|
||||||||||||||||
d/b/a PROGRESS ENERGY CAROLINAS, INC.
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating revenues
|
|
|
|
|
||||||||||||
Regulated electric
|
$ | 1,394 | $ | 1,330 | $ | 3,561 | $ | 3,524 | ||||||||
Non-regulated electric and other
|
4 | 1 | 17 | 10 | ||||||||||||
Total operating revenues
|
1,398 | 1,331 | 3,578 | 3,534 | ||||||||||||
Operating expenses
|
||||||||||||||||
Fuel used in electric generation and purchased power
|
597 | 544 | 1,450 | 1,382 | ||||||||||||
Operation, maintenance and other
|
384 | 273 | 1,146 | 863 | ||||||||||||
Depreciation and amortization
|
131 | 132 | 399 | 383 | ||||||||||||
Property and other taxes
|
60 | 58 | 168 | 164 | ||||||||||||
Impairment charges
|
55 | - | 55 | - | ||||||||||||
Total operating expenses
|
1,227 | 1,007 | 3,218 | 2,792 | ||||||||||||
Gains on sales of other assets and other, net
|
1 | - | 2 | 1 | ||||||||||||
Operating income
|
172 | 324 | 362 | 743 | ||||||||||||
Other income and expenses, net
|
21 | 16 | 57 | 55 | ||||||||||||
Interest expense, net
|
52 | 41 | 156 | 134 | ||||||||||||
Income before income taxes
|
141 | 299 | 263 | 664 | ||||||||||||
Income tax expense
|
45 | 100 | 83 | 227 | ||||||||||||
Net income
|
96 | 199 | 180 | 437 | ||||||||||||
Less: preferred stock dividend requirement
|
1 | 1 | 2 | 2 | ||||||||||||
Net income available to parent
|
$ | 95 | $ | 198 | $ | 178 | $ | 435 | ||||||||
Comprehensive income, net of tax
|
$ | 168 | $ | 165 | $ | 251 | $ | 400 | ||||||||
|
||||||||||||||||
See Notes to Progress Energy Carolinas, Inc. Unaudited Condensed Consolidated Interim Financial Statements.
|
CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC.
|
||||||||
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
ASSETS
|
|
|
||||||
Current assets
|
|
|
||||||
Cash and cash equivalents
|
$ | 19 | $ | 20 | ||||
Receivables, (net of allowance of $8 at September 30, 2012, and
$9 at December 31, 2011)
|
486 | 492 | ||||||
Receivables from affiliated companies
|
11 | 1 | ||||||
Inventory
|
749 | 770 | ||||||
Deferred tax assets
|
123 | 142 | ||||||
Prepayments and other current assets
|
70 | 84 | ||||||
Total current assets
|
1,458 | 1,509 | ||||||
Investments and other assets
|
||||||||
Nuclear decommissioning trust funds
|
1,223 | 1,088 | ||||||
Other
|
216 | 210 | ||||||
Total investments and other assets
|
1,439 | 1,298 | ||||||
Property, plant and equipment
|
||||||||
Cost
|
20,841 | 19,367 | ||||||
Cost, variable interest entities
|
16 | 16 | ||||||
Accumulated depreciation and amortization
|
(8,025 | ) | (7,991 | ) | ||||
Generation facilities to be retired, net
|
164 | 163 | ||||||
Net property, plant and equipment
|
12,996 | 11,555 | ||||||
Regulatory assets and deferred debits
|
||||||||
Regulatory assets
|
1,762 | 1,682 | ||||||
Other
|
30 | 22 | ||||||
Total regulatory assets and deferred debits
|
1,792 | 1,704 | ||||||
Total Assets
|
$ | 17,685 | $ | 16,066 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 369 | $ | 518 | ||||
Payables to affiliated companies
|
52 | 29 | ||||||
Notes payable and commercial paper
|
- | 188 | ||||||
Notes payable to affiliated companies
|
243 | 31 | ||||||
Taxes accrued
|
85 | 23 | ||||||
Interest accrued
|
71 | 77 | ||||||
Customer deposits
|
119 | 116 | ||||||
Derivative liabilities
|
79 | 123 | ||||||
Current maturities of long-term debt
|
403 | 502 | ||||||
Other
|
247 | 178 | ||||||
Total current liabilities
|
1,668 | 1,785 | ||||||
Long-term debt
|
4,435 | 3,704 | ||||||
Deferred credits and other liabilities
|
||||||||
Deferred income taxes
|
2,091 | 1,903 | ||||||
Investment tax credits
|
94 | 98 | ||||||
Accrued pension and other post-retirement benefit costs
|
726 | 687 | ||||||
Asset retirement obligations
|
1,623 | 896 | ||||||
Regulatory liabilities
|
1,667 | 1,543 | ||||||
Other
|
284 | 303 | ||||||
Total deferred credits and other liabilities
|
6,485 | 5,430 | ||||||
Commitments and contingencies
|
||||||||
Preferred stock
|
59 | 59 | ||||||
Equity
|
||||||||
Common stock without par value, 200 million shares authorized, 160
million shares issued and outstanding
|
2,159 | 2,148 | ||||||
Retained earnings
|
2,879 | 3,011 | ||||||
Accumulated other comprehensive loss
|
- | (71 | ) | |||||
Total equity
|
5,038 | 5,088 | ||||||
Total liabilities and equity
|
$ | 17,685 | $ | 16,066 | ||||
|
||||||||
See Notes to Progress Energy Carolinas, Inc. Unaudited Condensed Consolidated Interim Financial Statements.
|
CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS
|
||||||||
(in millions)
|
|
|
||||||
Nine months ended September 30
|
2012
|
2011
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||||
Net income
|
$ | 180 | $ | 437 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization (including amortization of nuclear fuel)
|
499 | 489 | ||||||
Equity component of AFUDC
|
(50 | ) | (53 | ) | ||||
Severance expense
|
16 | - | ||||||
FERC mitigation costs
|
71 | - | ||||||
Community support and charitable contributions expense
|
40 | - | ||||||
Gains on sales of other assets
|
(2 | ) | - | |||||
Deferred income taxes
|
127 | 222 | ||||||
Contributions to qualified pension plans
|
(60 | ) | (207 | ) | ||||
Accrued pension and other post-retirement benefit costs
|
58 | 32 | ||||||
(Increase) decrease in
|
||||||||
Net realized and unrealized mark-to-market and hedging transactions
|
(33 | ) | (17 | ) | ||||
Receivables
|
(35 | ) | 34 | |||||
Receivables from affiliate
|
(10 | ) | 7 | |||||
Inventory
|
23 | (142 | ) | |||||
Other current assets
|
(6 | ) | 88 | |||||
(Decrease) increase in
|
||||||||
Accounts payable
|
(20 | ) | (44 | ) | ||||
Payables to affiliate
|
23 | (11 | ) | |||||
Taxes accrued
|
62 | 55 | ||||||
Other current liabilities
|
16 | (8 | ) | |||||
Other assets
|
(19 | ) | (31 | ) | ||||
Other liabilities
|
(27 | ) | 37 | |||||
Net cash provided by operating activities
|
853 | 888 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(1,098 | ) | (1,010 | ) | ||||
Purchases of available-for-sale securities
|
(385 | ) | (430 | ) | ||||
Proceeds from sales and maturities of available-for-sale securities
|
359 | 401 | ||||||
Notes due from affiliate
|
- | (59 | ) | |||||
Other
|
75 | 4 | ||||||
Net cash used by investing activities
|
(1,049 | ) | (1,094 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
988 | 496 | ||||||
Payments for the redemption of long-term debt
|
(502 | ) | (1 | ) | ||||
Notes payable and commercial paper
|
(188 | ) | - | |||||
Dividends paid on preferred stock
|
(2 | ) | (2 | ) | ||||
Dividends to parent
|
(310 | ) | (450 | ) | ||||
Notes payable to affiliate
|
212 | - | ||||||
Other
|
(3 | ) | - | |||||
Net cash provided by financing activities
|
195 | 43 | ||||||
Net decrease in cash and cash equivalents
|
(1 | ) | (163 | ) | ||||
Cash and cash equivalents at beginning of period
|
20 | 230 | ||||||
Cash and cash equivalents at end of period
|
$ | 19 | $ | 67 | ||||
Supplemental disclosures
|
||||||||
Significant noncash transactions
|
||||||||
Accrued capital expenditures
|
$ | 144 | $ | 255 | ||||
Asset retirement obligation additions
|
684 | 3 | ||||||
Capital expenditures financed through capital leases
|
137 | - |
See Notes to Progress Energy Carolinas, Inc. Unaudited Condensed Consolidated Interim Financial Statements.
|
|
|
|
|
|
||||||||||||
CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC.
|
||||||||||||||||
|
|
|
Accumulated Other Comprehensive
(Loss) Income
|
|
||||||||||||
(in millions)
|
Common
Stock
|
Retained
Earnings
|
Net (Losses)
Gains on Cash
Flow Hedges
|
Total Equity
|
||||||||||||
Balance, December 31, 2010
|
$ | 2,130 | $ | 3,083 | $ | (33 | ) | $ | 5,180 | |||||||
Net income
|
- | 437 | - | 437 | ||||||||||||
Other comprehensive loss
|
- | - | (37 | ) | (37 | ) | ||||||||||
Stock-based compensation expense
|
14 | - | - | 14 | ||||||||||||
Dividends paid to parent
|
- | (450 | ) | - | (450 | ) | ||||||||||
Preferred stock dividends at stated rate
|
- | (2 | ) | - | (2 | ) | ||||||||||
Balance, September 30, 2011
|
$ | 2,144 | $ | 3,068 | $ | (70 | ) | $ | 5,142 | |||||||
|
||||||||||||||||
Balance, December 31, 2011
|
$ | 2,148 | $ | 3,011 | $ | (71 | ) | $ | 5,088 | |||||||
Net income
|
- | 180 | - | 180 | ||||||||||||
Other comprehensive income
|
- | - | 71 | 71 | ||||||||||||
Stock-based compensation expense
|
11 | - | - | 11 | ||||||||||||
Dividends paid to parent
|
- | (310 | ) | - | (310 | ) | ||||||||||
Preferred stock dividends at stated rate
|
- | (2 | ) | - | (2 | ) | ||||||||||
Balance, September 30, 2012
|
$ | 2,159 | $ | 2,879 | $ | - | $ | 5,038 | ||||||||
|
||||||||||||||||
See Notes to Progress Energy Carolinas, Inc. Unaudited Condensed Consolidated Interim Financial Statements.
|
FLORIDA POWER CORPORATION
|
||||||||||||||||
d/b/a PROGRESS ENERGY FLORIDA, INC.
|
||||||||||||||||
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating revenues
|
|
|
|
|
||||||||||||
Regulated electric
|
$ | 1,382 | $ | 1,414 | $ | 3,576 | $ | 3,639 | ||||||||
Non-regulated electric and other
|
6 | 5 | 18 | 16 | ||||||||||||
Total operating revenues
|
1,388 | 1,419 | 3,594 | 3,655 | ||||||||||||
Operating expenses
|
||||||||||||||||
Fuel used in electric generation and purchased power
|
799 | 690 | 1,849 | 1,804 | ||||||||||||
Operation, maintenance and other
|
245 | 222 | 660 | 652 | ||||||||||||
Depreciation and amortization
|
39 | 39 | 158 | 112 | ||||||||||||
Property and other taxes
|
99 | 106 | 271 | 274 | ||||||||||||
Total operating expenses
|
1,182 | 1,057 | 2,938 | 2,842 | ||||||||||||
Gains on sales of other assets and other, net
|
1 | 1 | 2 | 2 | ||||||||||||
Operating income
|
207 | 363 | 658 | 815 | ||||||||||||
Other income and expenses, net
|
11 | 5 | 29 | 24 | ||||||||||||
Interest expense, net
|
62 | 46 | 194 | 176 | ||||||||||||
Income before income taxes
|
156 | 322 | 493 | 663 | ||||||||||||
Income tax expense
|
56 | 119 | 182 | 245 | ||||||||||||
Net income
|
100 | 203 | 311 | 418 | ||||||||||||
Less: preferred stock dividend requirement
|
- | - | 1 | 1 | ||||||||||||
Net income available to parent
|
$ | 100 | $ | 203 | $ | 310 | $ | 417 | ||||||||
Comprehensive income, net of tax
|
$ | 126 | $ | 186 | $ | 337 | $ | 396 | ||||||||
|
||||||||||||||||
See Notes to Progress Energy Florida, Inc. Unaudited Condensed Interim Financial Statements.
|
FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC.
|
||||||||
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
ASSETS
|
|
|
||||||
Current assets
|
|
|
||||||
Cash and cash equivalents
|
$ | 20 | $ | 16 | ||||
Receivables, (net of allowance of $5 at September 30, 2012, and
$18 at December 31, 2011)
|
434 | 367 | ||||||
Receivables from affiliated companies
|
19 | 7 | ||||||
Inventory
|
618 | 659 | ||||||
Regulatory assets
|
214 | 244 | ||||||
Deferred tax assets
|
133 | 138 | ||||||
Prepayments and other current assets
|
44 | 37 | ||||||
Total current assets
|
1,482 | 1,468 | ||||||
Investments and other assets
|
||||||||
Nuclear decommissioning trust funds
|
621 | 559 | ||||||
Other
|
187 | 142 | ||||||
Total investments and other assets
|
808 | 701 | ||||||
Property, plant and equipment
|
||||||||
Cost
|
15,476 | 14,926 | ||||||
Accumulated depreciation and amortization
|
(4,594 | ) | (4,474 | ) | ||||
Net property, plant and equipment
|
10,882 | 10,452 | ||||||
Regulatory assets and deferred debits
|
||||||||
Regulatory assets
|
1,446 | 1,629 | ||||||
Other
|
42 | 44 | ||||||
Total regulatory assets and deferred debits
|
1,488 | 1,673 | ||||||
Total assets
|
$ | 14,660 | $ | 14,294 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 399 | $ | 340 | ||||
Payables to affiliated companies
|
25 | 14 | ||||||
Notes payable and commercial paper
|
- | 233 | ||||||
Notes payable to affiliated companies
|
221 | 8 | ||||||
Taxes accrued
|
142 | 31 | ||||||
Interest accrued
|
59 | 54 | ||||||
Customer deposits
|
222 | 224 | ||||||
Derivative liabilities
|
130 | 220 | ||||||
Current maturities of long-term debt
|
435 | 10 | ||||||
Other
|
128 | 132 | ||||||
Total current liabilities
|
1,761 | 1,266 | ||||||
Long-term debt
|
4,237 | 4,671 | ||||||
Deferred credits and other liabilities
|
||||||||
Deferred income taxes
|
1,541 | 1,325 | ||||||
Accrued pension and other post-retirement benefit costs
|
631 | 598 | ||||||
Asset retirement obligations
|
514 | 369 | ||||||
Regulatory liabilities
|
880 | 1,024 | ||||||
Other
|
217 | 332 | ||||||
Total deferred credits and other liabilities
|
3,783 | 3,648 | ||||||
Commitments and contingencies
|
||||||||
Preferred stock
|
34 | 34 | ||||||
Equity
|
||||||||
Common stock without par value, 60 million shares authorized,
100 shares issued and outstanding
|
1,762 | 1,757 | ||||||
Retained earnings
|
3,084 | 2,945 | ||||||
Accumulated other comprehensive loss
|
(1 | ) | (27 | ) | ||||
Total equity
|
4,845 | 4,675 | ||||||
Total liabilities and equity
|
$ | 14,660 | $ | 14,294 | ||||
|
|
|||||||
See Notes to Progress Energy Florida, Inc. Unaudited Condensed Interim Financial Statements.
|
FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC.
|
||||||||
UNAUDITED CONDENSED STATEMENTS of CASH FLOWS
|
||||||||
(in millions)
|
|
|
||||||
Nine months ended September 30
|
2012
|
2011
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||||
Net income
|
$ | 311 | $ | 418 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
161 | 115 | ||||||
Equity component of AFUDC
|
(27 | ) | (24 | ) | ||||
Severance expense
|
7 | - | ||||||
Amount to be refunded to customers (Note 4B)
|
100 | - | ||||||
Gains on sales of other assets
|
(2 | ) | (2 | ) | ||||
Deferred income taxes
|
192 | 291 | ||||||
Contributions to qualified pension plans
|
(61 | ) | (104 | ) | ||||
Accrued pension and other post-retirement benefit costs
|
52 | 38 | ||||||
Decrease (increase) in
|
||||||||
Net realized and unrealized mark-to-market hedging transactions
|
64 | 11 | ||||||
Receivables
|
(76 | ) | (132 | ) | ||||
Receivables from affiliate
|
(12 | ) | 1 | |||||
Inventory
|
36 | (10 | ) | |||||
Other current assets
|
(47 | ) | (58 | ) | ||||
Increase (decrease) in
|
||||||||
Accounts payable
|
68 | (7 | ) | |||||
Payables to affiliate
|
11 | (5 | ) | |||||
Taxes accrued
|
110 | 105 | ||||||
Other current liabilities
|
(15 | ) | 27 | |||||
Other assets
|
21 | (2 | ) | |||||
Other liabilities
|
(123 | ) | 58 | |||||
Net cash provided by operating activities
|
770 | 720 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(573 | ) | (626 | ) | ||||
Purchases of available-for-sale securities
|
(562 | ) | (4,097 | ) | ||||
Proceeds from sales and maturities of available-for-sale securities
|
561 | 4,098 | ||||||
Insurance proceeds
|
7 | 74 | ||||||
Other
|
4 | 28 | ||||||
Net cash used by investing activities
|
(563 | ) | (523 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
- | 296 | ||||||
Payments for the redemption of long-term debt
|
(9 | ) | (309 | ) | ||||
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 | - | ||||||
Notes payable and commercial paper
|
(233 | ) | - | |||||
Dividends paid on preferred stock
|
(1 | ) | (1 | ) | ||||
Dividends to parent
|
(170 | ) | (475 | ) | ||||
Notes payable to affiliate
|
213 | 60 | ||||||
Other
|
(3 | ) | 1 | |||||
Net cash used by financing activities
|
(203 | ) | (428 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
4 | (231 | ) | |||||
Cash and cash equivalents at beginning of period
|
16 | 249 | ||||||
Cash and cash equivalents at end of period
|
$ | 20 | $ | 18 | ||||
Supplemental disclosures
|
||||||||
Significant noncash transactions
|
||||||||
Accrued capital expenditures
|
$ | 102 | $ | 72 | ||||
Asset retirement obligation additions
|
129 | - | ||||||
|
||||||||
See Notes to Progress Energy Florida, Inc. Unaudited Condensed Interim Financial Statements.
|
|
|
|
|
|
||||||||||||
FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC.
|
||||||||||||||||
|
|
|
Accumulated Other Comprehensive
(Loss) Income
|
|
||||||||||||
(in millions)
|
Common
Stock
|
Retained
Earnings
|
Net (Losses)
Gains on Cash
Flow Hedges
|
Total Equity
|
||||||||||||
Balance, December 31, 2010
|
$ | 1,750 | $ | 3,144 | $ | (4 | ) | $ | 4,890 | |||||||
Net income
|
- | 418 | - | 418 | ||||||||||||
Other comprehensive loss
|
- | - | (22 | ) | (22 | ) | ||||||||||
Stock-based compensation expense
|
5 | - | - | 5 | ||||||||||||
Dividends paid to parent
|
- | (475 | ) | - | (475 | ) | ||||||||||
Preferred stock dividends at stated rate
|
- | (1 | ) | - | (1 | ) | ||||||||||
Tax dividend
|
- | (2 | ) | - | (2 | ) | ||||||||||
Balance, September 30, 2011
|
$ | 1,755 | $ | 3,084 | $ | (26 | ) | $ | 4,813 | |||||||
|
||||||||||||||||
Balance, December 31, 2011
|
$ | 1,757 | $ | 2,945 | $ | (27 | ) | $ | 4,675 | |||||||
Net income
|
- | 311 | - | 311 | ||||||||||||
Other comprehensive income
|
- | - | 26 | 26 | ||||||||||||
Stock-based compensation expense
|
5 | - | - | 5 | ||||||||||||
Dividends paid to parent
|
- | (170 | ) | - | (170 | ) | ||||||||||
Preferred stock dividends at stated rate
|
- | (1 | ) | - | (1 | ) | ||||||||||
Tax dividend
|
- | (1 | ) | - | (1 | ) | ||||||||||
Balance, September 30, 2012
|
$ | 1,762 | $ | 3,084 | $ | (1 | ) | $ | 4,845 | |||||||
|
||||||||||||||||
See Notes to Progress Energy Florida, Inc. Unaudited Condensed Interim Financial Statements.
|
|
Applicable Notes
|
||||||||||||||||
Registrant
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
13
|
14
|
15
|
16
|
17
|
Progress Energy
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
PEC
|
Ÿ
|
Ÿ
|
|
Ÿ
|
Ÿ
|
Ÿ
|
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
|
PEF
|
Ÿ
|
Ÿ
|
|
Ÿ
|
Ÿ
|
Ÿ
|
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
Ÿ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. | ORGANIZATION |
B. | BASIS OF PRESENTATION |
C.
|
USE OF ESTIMATES
|
D.
|
UNBILLED REVENUE |
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
Progress Energy
|
$ | 190 | $ | 157 | ||||
PEC
|
$ | 99 | $ | 102 | ||||
PEF
|
$ | 91 | $ | 55 | ||||
|
2. | MERGER AND SALES OF OTHER ASSETS |
A. |
MERGER WITH DUKE ENERGY
|
·
|
On June 25, 2012, Duke Energy and Progress Energy accepted the conditions imposed by the FERC.
|
·
|
On July 9, 2012, certain intervenors requested a rehearing seeking to overturn the June 8, 2012 order by the FERC. On August 8, 2012, the FERC granted rehearing for further consideration.
|
·
|
Guarantee of $650 million in system fuel and fuel-related savings over 60 to 78 months for North Carolina and South Carolina retail customers. The savings are expected to be achieved through coal blending, coal commodity and transportation savings, gas transportation savings and the joint dispatch of Duke Energy Carolinas and PEC generation fleets.
|
·
|
Duke Energy Carolinas and PEC will not seek recovery from retail customers for the cost of the Long-term FERC Mitigation for five years following merger consummation. After five years, Duke Energy Carolinas and PEC may seek to recover the costs of the Long-term FERC Mitigation, but must show that the projects are needed to provide adequate and reliable retail service regardless of the merger.
|
·
|
A $65 million rate reduction over the term of the Interim FERC Mitigation to reflect the cost of capacity not available to Duke Energy Carolinas and PEC wholesale and retail customers during the Interim FERC Mitigation. The rate reduction will be achieved through retail decrement riders apportioned between Duke Energy Carolinas and PEC retail customers.
|
·
|
Duke Energy Carolinas and PEC will not seek recovery from retail customers for any revenue shortfalls or fuel-related costs associated with the Interim FERC Mitigation.
|
·
|
Duke Energy Carolinas and PEC will not seek recovery from retail customers for any of their allocable share of merger-related severance costs.
|
·
|
Duke Energy Carolinas and PEC will provide community support and charitable contributions for four years, workforce development, low income energy assistance and funding for green energy at a total cost of approximately $99 million, which cannot be recovered from retail customers.
|
·
|
Duke Energy Carolinas and PEC will abide by revised North Carolina Regulatory Conditions and Code of Conduct governing their operations.
|
(in millions)
|
PEC
|
PEF
|
Progress
Energy
|
|||||||||
FERC Mitigation
|
$ | 71 | $ | - | $ | 71 | ||||||
Severance costs
|
42 | 24 | 66 | |||||||||
Community support, charitable contributions and other
|
54 | 9 | 63 | |||||||||
Total
|
$ | 167 | $ | 33 | $ | 200 | ||||||
|
|
Three months ended September 30
|
Nine months ended September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Progress Energy
|
$ | 218 | $ | 14 | $ | 241 | $ | 32 | ||||||||
PEC
|
180 | 7 | 194 | 17 | ||||||||||||
PEF
|
38 | 7 | 47 | 15 | ||||||||||||
|
(in millions)
|
|
|||
Balance, December 31, 2011
|
$ | 5 | ||
Additional exit cost recognized
|
5 | |||
Balance, June 30, 2012
|
10 | |||
Additional exit cost recognized(a)
|
2 | |||
Balance, September 30, 2012(b)
|
$ | 12 |
(a)
|
PEC, PEF and other Duke Energy subsidiaries recognized exit costs of $1 million, $- million and $1 million, respectively, for the three months ended September 30, 2012, and $4 million, $2 million and $1 million, respectively, for the nine months ended September 30, 2012.
|
|||||
(b)
|
Expense related to the recognition of the cumulative exit cost liability at September 30, 2012, was attributed to PEC, PEF and other Duke Energy subsidiaries totaling $8 million, $3 million and $1 million, respectively.
|
B.
|
SALES OF OTHER ASSETS
|
BUSINESS SEGMENT DATA
|
|
|
||||||||||||||
(in millions)
|
Unaffiliated
Revenues
|
Affiliated
Revenues
|
Total
Revenues
|
Segment Income/ Consolidated Net
Income(a)
|
||||||||||||
Three months ended September 30, 2012
|
|
|||||||||||||||
Franchised Electric
|
$ | 2,747 | $ | 39 | $ | 2,786 | $ | 333 | ||||||||
Total reportable segment
|
2,747 | 39 | 2,786 | 333 | ||||||||||||
Other
|
3 | - | 3 | (181 | )(b) | |||||||||||
Eliminations
|
- | (1 | ) | (1 | ) | - | ||||||||||
Add back of noncontrolling interest component
|
- | - | - | 2 | ||||||||||||
Income from discontinued operations, net of tax
|
- | - | - | 3 | ||||||||||||
Total consolidated
|
$ | 2,750 | $ | 38 | $ | 2,788 | $ | 157 | ||||||||
Three months ended September 30, 2011
|
||||||||||||||||
Franchised Electric
|
$ | 2,750 | $ | - | $ | 2,750 | $ | 408 | ||||||||
Total reportable segment
|
2,750 | - | 2,750 | 408 | ||||||||||||
Other
|
3 | - | 3 | (117 | )(b) | |||||||||||
Add back of noncontrolling interest component
|
- | - | - | 2 | ||||||||||||
Total consolidated
|
$ | 2,753 | $ | - | $ | 2,753 | $ | 293 |
(in millions)
|
Unaffiliated
Revenues
|
Affiliated
Revenues
|
Total
Revenues
|
Segment Income/ Consolidated Net
Income(a)
|
||||||||||||
Nine months ended September 30, 2012
|
||||||||||||||||
Franchised Electric
|
$ | 7,132 | $ | 40 | $ | 7,172 | $ | 636 | ||||||||
Total reportable segment
|
7,132 | 40 | 7,172 | 636 | ||||||||||||
Other
|
8 | - | 8 | (278 | )(b) | |||||||||||
Eliminations
|
- | (2 | ) | (2 | ) | - | ||||||||||
Add back of noncontrolling interest component
|
- | - | - | 5 | ||||||||||||
Income from discontinued operations, net of tax
|
- | - | - | 10 | ||||||||||||
Total consolidated
|
$ | 7,140 | $ | 38 | $ | 7,178 | $ | 373 | ||||||||
Nine months ended September 30, 2011
|
||||||||||||||||
Franchised Electric
|
$ | 7,188 | $ | 1 | $ | 7,189 | $ | 874 | ||||||||
Total reportable segment
|
7,188 | 1 | 7,189 | 874 | ||||||||||||
Other
|
8 | - | 8 | (219 | )(b) | |||||||||||
Eliminations
|
- | (1 | ) | (1 | ) | - | ||||||||||
Add back of noncontrolling interest component
|
- | - | - | 5 | ||||||||||||
Loss from discontinued operations, net of tax
|
- | - | - | (4 | ) | |||||||||||
Total consolidated
|
$ | 7,196 | $ | - | $ | 7,196 | $ | 656 |
(a)
|
Segment income excludes noncontrolling interests and results of entities classified as discontinued operations.
|
||||||||||||
(b)
|
Segment income includes after-tax costs to achieve the merger with Duke Energy of $132 million and $149 million for the three and nine months ended September 30, 2012, respectively, and $9 million and $27 million for the three and nine months ended September 30, 2011, respectively.
|
SEGMENT ASSETS
|
|
|
||||||
|
|
|||||||
Segment assets in the following table exclude all intercompany assets between the Progress Energy Registrants.
|
||||||||
|
|
|||||||
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
Franchised Electric
|
$ | 36,135 | $ | 34,166 | ||||
Total reportable segment
|
36,135 | 34,166 | ||||||
Other
|
549 | 765 | ||||||
Reclassifications(a)
|
(33 | ) | - | |||||
Total consolidated assets
|
$ | 36,651 | $ | 34,931 |
(a)
|
Primarily represents reclassification of federal tax balances in consolidation.
|
A. | PEC |
B.
|
PEF
|
(in millions)
|
Replacement
Power Costs
|
Repair Costs
|
||||||
Spent to date
|
$ | 573 | $ | 324 | ||||
NEIL proceeds received to date
|
(162 | ) | (143 | ) | ||||
Balance for recovery(a)
|
$ | 411 | $ | 181 |
(a)
|
|
See discussion below of PEF's ability to recover prudently incurred fuel and purchased power costs and CR3 repair costs.
|
||||
|
|
|
|
|
C.
|
OTHER REGULATORY MATTERS |
D. |
PLANT RETIREMENTS AND ASSET RETIREMENT OBLIGATIONS
|
A. | ENVIRONMENTAL MATTERS |
PROGRESS ENERGY
|
|
|||
(in millions)
|
Total
|
|||
Balance, December 31, 2011
|
$ | 23 | ||
Amount accrued for environmental loss contingencies
|
16 | |||
Expenditures for environmental loss contingencies
|
(7 | ) | ||
Balance, September 30, 2012(a)
|
$ | 32 | ||
Balance, December 31, 2010
|
$ | 35 | ||
Amount accrued for environmental loss contingencies
|
7 | |||
Expenditures for environmental loss contingencies
|
(17 | ) | ||
Balance, September 30, 2011(a)
|
$ | 25 |
(a)
|
Expected to be paid out over one to 12 years.
|
PEC
|
|
|||
(in millions)
|
Total
|
|||
Balance, December 31, 2011
|
$ | 11 | ||
Amount accrued for environmental loss contingencies
|
4 | |||
Expenditures for environmental loss contingencies
|
(2 | ) | ||
Balance, September 30, 2012(a)
|
$ | 13 | ||
Balance, December 31, 2010
|
$ | 12 | ||
Amount accrued for environmental loss contingencies
|
- | |||
Expenditures for environmental loss contingencies
|
(1 | ) | ||
Balance, September 30, 2011(a)
|
$ | 11 |
(a)
|
Expected to be paid out over one to ten years.
|
PEF
|
|
|||
(in millions)
|
Total
|
|||
Balance, December 31, 2011
|
$ | 12 | ||
Amount accrued for environmental loss contingencies
|
12 | |||
Expenditures for environmental loss contingencies
|
(5 | ) | ||
Balance, September 30, 2012(a)
|
$ | 19 | ||
Balance, December 31, 2010
|
$ | 23 | ||
Amount accrued for environmental loss contingencies
|
7 | |||
Expenditures for environmental loss contingencies
|
(16 | ) | ||
Balance, September 30, 2011(a)
|
$ | 14 |
(a)
|
Expected to be paid out over one to 12 years.
|
B.
|
LITIGATION
|
C. | GUARANTEES |
D.
|
OTHER COMMITMENTS AND CONTINGENCIES
|
7. | GOODWILL |
A. |
COMMODITY PRICE RISK
|
B. | INTEREST RATE RISK |
Notional Amounts of Derivative Instruments Related to Interest Rate
|
||||||||||||
|
Progress
Energy
|
PEC
|
PEF
|
|||||||||
(in millions)
|
September 30, 2012
|
|||||||||||
Undesignated contracts
|
$ | 100 | $ | 50 | $ | 50 | ||||||
|
||||||||||||
(in millions)
|
December 31, 2011
|
|||||||||||
Cash flow hedges
|
$ | 500 | $ | 250 | $ | 50 |
C. | VOLUMES |
Underlying Notional Amounts for Commodity Derivative Instruments Accounted for At Fair Value
|
||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||
|
September 30, 2012
|
|||||||||||
Commodity contracts
|
|
|
|
|||||||||
Electricity-energy (Gigawatt-hours)(a)
|
1,850 | 1,850 | - | |||||||||
Electricity-capacity (Gigawatt-months)(a)
|
5 | 5 | - | |||||||||
Natural gas (millions of decatherms)
|
297 | 89 | 208 | |||||||||
Fuel oil (millions of gallons)
|
6 | - | 6 | |||||||||
|
December 31, 2011
|
|||||||||||
Commodity contracts
|
||||||||||||
Natural gas (millions of decatherms)
|
347 | 103 | 244 | |||||||||
Fuel oil (millions of gallons)
|
10 | - | 10 |
(a)
|
Interim FERC Mitigation power sales agreements entered into in connection with the merger with Duke Energy.
|
D. | DERIVATIVE INSTRUMENT AND HEDGING ACTIVITY INFORMATION |
Location and Fair Value of Derivatives Reflected in the Balance Sheets
|
||||||||||||||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
Instrument / Balance Sheet location
|
September 30, 2012
|
|||||||||||||||||||||||
(in millions)
|
Asset
|
Liability
|
Asset
|
Liability
|
Asset
|
Liability
|
||||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
||||||||||||||||||||||
Commodity contracts
|
|
|
|
|
|
|
||||||||||||||||||
Derivative liabilities, current
|
|
$ | 1 |
|
$ | - |
|
$ | 1 | |||||||||||||||
Total derivatives designated as hedging
instruments
|
|
1 |
|
- |
|
1 | ||||||||||||||||||
|
|
|
||||||||||||||||||||||
Derivatives not designated as hedging instruments
|
|
|||||||||||||||||||||||
Commodity contracts(a)
|
|
|
|
|||||||||||||||||||||
Investments and other assets: other
|
$ | 1 | - | $ | - | - | $ | 1 | - | |||||||||||||||
Derivative liabilities, current
|
8 | 220 | 3 | 74 | 5 | 146 | ||||||||||||||||||
Deferred credits and other liabilities: other
|
14 | 209 | 2 | 74 | 12 | 135 | ||||||||||||||||||
Interest rate contracts(a)
|
||||||||||||||||||||||||
Derivative liabilities, current
|
23 | 11 | 12 | |||||||||||||||||||||
CVOs(b)
|
||||||||||||||||||||||||
Deferred credits and other liabilities: other
|
4 | - | - | |||||||||||||||||||||
Total derivatives not designated as
hedging instruments
|
23 | 456 | 5 | 159 | 18 | 293 | ||||||||||||||||||
Total derivatives
|
$ | 23 | $ | 457 | $ | 5 | $ | 159 | $ | 18 | $ | 294 |
(a)
|
Substantially all of these contracts receive regulatory treatment.
|
||||||||||||||||||
(b)
|
As discussed in Note 16 in the 2011 Form 10-K, the Parent issued 98.6 million Contingent Value Obligations (CVOs) in connection with the acquisition of Florida Progress Corporation (Florida Progress) during 2000. Through a negotiated settlement agreement and subsequent tender offer between October 2011 and February 2012, we repurchased and continue to hold 83.4 million CVOs.
|
|
|
|
|
|
|
|||||||||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
Instrument / Balance Sheet location
|
December 31, 2011
|
|||||||||||||||||||||||
(in millions)
|
Asset
|
Liability
|
Asset
|
Liability
|
Asset
|
Liability
|
||||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
||||||||||||||||||||||
Commodity contracts
|
|
|
|
|
|
|
||||||||||||||||||
Derivative liabilities, current
|
|
$ | 2 |
|
$ | - |
|
$ | 2 | |||||||||||||||
Deferred credits and other liabilities: other
|
|
1 |
|
- |
|
1 | ||||||||||||||||||
Interest rate contracts
|
|
|
|
|||||||||||||||||||||
Derivative liabilities, current
|
|
76 |
|
38 |
|
- | ||||||||||||||||||
Deferred credits and other liabilities: other
|
|
17 |
|
9 |
|
8 | ||||||||||||||||||
Total derivatives designated as hedging
instruments
|
|
96 |
|
47 |
|
11 | ||||||||||||||||||
|
|
|
||||||||||||||||||||||
Derivatives not designated as hedging instruments
|
|
|||||||||||||||||||||||
Commodity contracts(a)
|
|
|
|
|||||||||||||||||||||
Derivative liabilities, current
|
$ | 5 | 357 | $ | - | 91 | $ | 5 | 266 | |||||||||||||||
Deferred credits and other liabilities: other
|
- | 332 | - | 110 | - | 222 | ||||||||||||||||||
CVOs(b)
|
||||||||||||||||||||||||
Current liabilities: other
|
14 | - | - | |||||||||||||||||||||
Total derivatives not designated as
hedging instruments
|
5 | 703 | - | 201 | 5 | 488 | ||||||||||||||||||
Total derivatives
|
$ | 5 | $ | 799 | $ | - | $ | 248 | $ | 5 | $ | 499 |
(a)
|
Substantially all of these contracts receive regulatory treatment.
|
||||||||||||||||||
(b)
|
As discussed in Note 16 in the 2011 Form 10-K, the Parent issued 98.6 million CVOs in connection with the acquisition of Florida Progress during 2000. In 2011, we repurchased and continue to hold 80.1 million CVOs in a negotiated settlement agreement and subsequent tender offer.
|
Cash Flow Hedges - Location and Amount of Pre-Tax Gains and (Losses) Recognized in Comprehensive
Income
|
||||||||||||||||||||||||
Progres
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
|
Three months ended September 30
|
|||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Pre-tax gains (losses) recognized in OCI(a)
|
|
|
|
|
|
|
||||||||||||||||||
Commodity contracts
|
$ | 1 | $ | (1 | ) | $ | - | $ | - | $ | 1 | $ | (1 | ) | ||||||||||
Interest rate contracts(b)
|
- | (111 | ) | - | (58 | ) | - | (27 | ) | |||||||||||||||
Total pre-tax gains (losses) recognized in
OCI
|
$ | 1 | $ | (112 | ) | $ | - | $ | (58 | ) | $ | 1 | $ | (28 | ) | |||||||||
Location of pre-tax gains (losses) reclassified
from OCI into income(a)
|
||||||||||||||||||||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Interest expense
|
$ | (2 | ) | $ | (3 | ) | $ | - | $ | (2 | ) | $ | - | $ | - | |||||||||
Total pre-tax gains (losses) reclassified from
OCI into income
|
$ | (2 | ) | $ | (3 | ) | $ | - | $ | (2 | ) | $ | - | $ | - | |||||||||
Location of pre-tax gains (losses) recognized
in income on derivatives(c)
|
||||||||||||||||||||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Interest expense
|
$ | - | $ | (1 | ) | $ | - | $ | (1 | ) | $ | - | $ | - | ||||||||||
Total pre-tax gains (losses) recognized in
income on derivatives
|
$ | - | $ | (1 | ) | $ | - | $ | (1 | ) | $ | - | $ | - |
(a)
|
Effective portion.
|
||||||||||||||||||
(b)
|
Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.
|
||||||||||||||||||
(c)
|
Related to ineffective portion and amount excluded from effectiveness testing.
|
|
|
|
|
|
|
|||||||||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
|
Nine months ended September 30
|
|||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Pre-tax gains (losses) recognized in OCI(a)
|
|
|
|
|
|
|
||||||||||||||||||
Commodity contracts
|
$ | 1 | $ | (1 | ) | $ | - | $ | - | $ | 1 | $ | (1 | ) | ||||||||||
Interest rate contracts(b)
|
(11 | ) | (134 | ) | (7 | ) | (67 | ) | (2 | ) | (35 | ) | ||||||||||||
Total pre-tax gains (losses) recognized in
OCI
|
$ | (10 | ) | $ | (135 | ) | $ | (7 | ) | $ | (67 | ) | $ | (1 | ) | $ | (36 | ) | ||||||
Location of pre-tax gains (losses) reclassified
from OCI into income(a)
|
||||||||||||||||||||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Interest expense
|
$ | (12 | ) | $ | (9 | ) | $ | (5 | ) | $ | (5 | ) | $ | (2 | ) | $ | - | |||||||
Total pre-tax gains (losses) reclassified from
OCI into income
|
$ | (12 | ) | $ | (9 | ) | $ | (5 | ) | $ | (5 | ) | $ | (2 | ) | $ | - | |||||||
Location of pre-tax gains (losses) recognized
in income on derivatives(c)
|
||||||||||||||||||||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Interest expense
|
$ | - | $ | (3 | ) | $ | - | $ | (1 | ) | $ | - | $ | - | ||||||||||
Total pre-tax gains (losses) recognized in
income on derivatives
|
$ | - | $ | (3 | ) | $ | - | $ | (1 | ) | $ | - | $ | - |
(a)
|
Effective portion.
|
||||||||||||||||||
(b)
|
Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.
|
||||||||||||||||||
(c)
|
Related to ineffective portion and amount excluded from effectiveness testing.
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undesignated Contracts - Location and Amount of Pre-Tax Gains and (Losses) Recognized in Income or as
Regulatory Assets or Liabilities
|
||||||||||||||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
|
Three months ended September 30
|
|||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Location of pre-tax gains and (losses)
recognized in earnings
|
|
|
|
|
|
|
||||||||||||||||||
Commodity contracts
|
|
|
|
|
|
|
||||||||||||||||||
Regulated electric revenue
|
$ | (9 | ) | $ | - | $ | (9 | ) | $ | - | $ | - | $ | - | ||||||||||
Fuel used in electric generation and
purchased power(a)
|
(135 | ) | (91 | ) | (35 | ) | (20 | ) | (100 | ) | (71 | ) | ||||||||||||
Interest rate contracts
|
||||||||||||||||||||||||
Interest expense(b)
|
(4 | ) | - | (3 | ) | - | (1 | ) | - | |||||||||||||||
Total pre-tax gains (losses) recognized in
earnings
|
$ | (148 | ) | $ | (91 | ) | $ | (47 | ) | $ | (20 | ) | $ | (101 | ) | $ | (71 | ) | ||||||
Location of pre-tax gains and (losses)
recognized as regulatory assets or liabilities
|
||||||||||||||||||||||||
Commodity contracts(c)
|
||||||||||||||||||||||||
Regulatory asset
|
$ | 60 | $ | (157 | ) | $ | 15 | $ | (42 | ) | $ | 45 | $ | (115 | ) | |||||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Regulatory asset
|
2 | - | 2 | - | - | - | ||||||||||||||||||
Total pre-tax gains (losses) recognized as
regulatory assets or liabilities
|
$ | 62 | $ | (157 | ) | $ | 17 | $ | (42 | ) | $ | 45 | $ | (115 | ) | |||||||||
Location of pre-tax gains and (losses)
recognized in income on derivatives
|
||||||||||||||||||||||||
Fair value loss transition adjustment
|
||||||||||||||||||||||||
Regulated electric revenue
|
$ | - | $ | 1 | $ | - | $ | 1 | $ | - | $ | - | ||||||||||||
CVOs
|
||||||||||||||||||||||||
Other income and expenses, net
|
(1 | ) | (63 | ) | - | - | - | - | ||||||||||||||||
Total pre-tax gains (losses) recognized in
income on derivatives
|
$ | (1 | ) | $ | (62 | ) | $ | - | $ | 1 | $ | - | $ | - |
(a)
|
After settlement of the derivatives and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
|
(b)
|
Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.
|
(c)
|
Amounts are recorded in regulatory assets and liabilities in the Balance Sheets until derivatives are settled.
|
|
|
|
|
|
|
|||||||||||||||||||
Progress
Energy
|
PEC
|
PEF
|
||||||||||||||||||||||
|
Nine months ended September 30
|
|||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Location of pre-tax gains and (losses)
recognized in earnings
|
|
|
|
|
|
|
||||||||||||||||||
Commodity contracts
|
|
|
|
|
|
|
||||||||||||||||||
Regulated electric revenue
|
$ | (9 | ) | $ | - | $ | (9 | ) | $ | - | $ | - | $ | - | ||||||||||
Fuel used in electric generation and
purchased power(a)
|
(395 | ) | (219 | ) | (100 | ) | (42 | ) | (295 | ) | (177 | ) | ||||||||||||
Interest rate contracts
|
||||||||||||||||||||||||
Interest expense(b)
|
(4 | ) | - | (3 | ) | - | (1 | ) | - | |||||||||||||||
Total pre-tax gains (losses) recognized in
earnings
|
$ | (408 | ) | $ | (219 | ) | $ | (112 | ) | $ | (42 | ) | $ | (296 | ) | $ | (177 | ) | ||||||
Location of pre-tax gains and (losses)
recognized as regulatory assets or liabilities
|
||||||||||||||||||||||||
Commodity contracts(c)
|
||||||||||||||||||||||||
Regulatory asset
|
$ | (108 | ) | $ | (201 | ) | $ | (34 | ) | $ | (55 | ) | $ | (74 | ) | $ | (146 | ) | ||||||
Interest rate contracts(b)
|
||||||||||||||||||||||||
Regulatory asset
|
2 | - | 2 | - | - | - | ||||||||||||||||||
Total pre-tax gains (losses) recognized as
regulatory assets or liabilities
|
$ | (106 | ) | $ | (201 | ) | $ | (32 | ) | $ | (55 | ) | $ | (74 | ) | $ | (146 | ) | ||||||
Location of pre-tax gains and (losses)
recognized in income on derivatives
|
||||||||||||||||||||||||
Commodity contracts
|
||||||||||||||||||||||||
Regulated electric revenue
|
$ | 2 | $ | 1 | $ | 2 | $ | 1 | $ | - | $ | - | ||||||||||||
Fair value loss transition adjustment
|
||||||||||||||||||||||||
Regulated electric revenue
|
1 | 1 | 1 | 1 | - | - | ||||||||||||||||||
CVOs
|
||||||||||||||||||||||||
Other income and expenses, net
|
7 | (59 | ) | - | - | - | - | |||||||||||||||||
Total pre-tax gains (losses) recognized in
income on derivatives
|
$ | 10 | $ | (57 | ) | $ | 3 | $ | 2 | $ | - | $ | - |
(a)
|
After settlement of the derivatives and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
|
(b)
|
Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.
|
(c)
|
Amounts are recorded in regulatory assets and liabilities in the Balance Sheets until derivatives are settled.
|
E. | CREDIT RISK |
Information Regarding Derivative Instruments that Contain Credit-Risk-Related Contingent Features
|
||||||||||||
|
Progress
Energy
|
PEC
|
PEF
|
|||||||||
(in millions)
|
September 30, 2012
|
|||||||||||
Aggregate fair value amounts of derivative instruments in a net liability
position
|
$ | 325 | $ | 118 | $ | 207 | ||||||
Collateral already posted
|
74 | 13 | 61 | |||||||||
Additional cash collateral or letters of credit in the event credit-risk-related
contingent features were triggered at the end of the reporting period
|
251 | 105 | 146 | |||||||||
|
||||||||||||
(in millions)
|
December 31, 2011
|
|||||||||||
Aggregate fair value amounts of derivative instruments in a net liability
position
|
$ | 489 | $ | 152 | $ | 337 | ||||||
Collateral already posted
|
147 | 24 | 123 | |||||||||
Additional cash collateral or letters of credit in the event credit-risk-related
contingent features were triggered at the end of the reporting period
|
342 | 128 | 214 |
Information Regarding Cash Collateral under Master Netting Arrangements
|
||||||||||||||||||||||||
|
Progress Energy
|
PEC
|
PEF
|
|||||||||||||||||||||
|
September 30, 2012
|
|||||||||||||||||||||||
(in millions)
|
Receivables
|
Payables
|
Receivables
|
Payables
|
Receivables
|
Payables
|
||||||||||||||||||
Amounts offset against net
derivative positions
|
$ | 73 | $ | - | $ | 13 | $ | - | $ | 60 | $ | - | ||||||||||||
Amounts not offset against net
derivative positions
|
1 | - | - | - | 1 | - | ||||||||||||||||||
|
||||||||||||||||||||||||
|
December 31, 2011
|
|||||||||||||||||||||||
(in millions)
|
Receivables
|
Payables
|
Receivables
|
Payables
|
Receivables
|
Payables
|
||||||||||||||||||
Amounts offset against net
derivative positions
|
$ | 140 | $ | - | $ | 23 | $ | - | $ | 117 | $ | - | ||||||||||||
Amounts not offset against net
derivative positions
|
3 | - | - | - | 3 | - |
PROGRESS ENERGY
|
|
|
|
|
||||||||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
September 30, 2012
|
|
|
|
|
||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 1,226 | $ | 1,220 | $ | 6 | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
618 | 131 | 487 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
60 | 21 | 39 | - | ||||||||||||
Derivative assets(b)
|
1 | - | 1 | - | ||||||||||||
Total assets
|
1,905 | 1,372 | 533 | - | ||||||||||||
Derivative liabilities(c)
|
(435 | ) | - | (399 | ) | (36 | ) | |||||||||
Net assets
|
$ | 1,470 | $ | 1,372 | $ | 134 | $ | (36 | ) |
|
|
|
|
|||||||||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
December 31, 2011
|
|
|
|
|
||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 1,062 | $ | 1,061 | $ | 1 | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
585 | 87 | 498 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
20 | 20 | - | - | ||||||||||||
Derivative assets(b)
|
5 | - | 5 | - | ||||||||||||
Total assets
|
1,672 | 1,168 | 504 | - | ||||||||||||
Derivative liabilities(c)
|
(799 | ) | - | (775 | ) | (24 | ) | |||||||||
Net assets
|
$ | 873 | $ | 1,168 | $ | (271 | ) | $ | (24 | ) |
(a)
|
Included in Other within Investments and Other Assets in the Consolidated Balance Sheets.
|
|||||||||||
(b)
|
Included in Prepayments and Other Current Assets within Current Assets and Other within Investments and Other Assets in the Consolidated Balance Sheets.
|
|||||||||||
(c)
|
Included in Derivative Liabilities within Current Liabilities and Other within Deferred Credits and Other Liabilities in the Consolidated Balance Sheets.
|
PEC
|
|
|
|
|
||||||||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
September 30, 2012
|
|
|
|
|
||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 797 | $ | 797 | $ | - | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
426 | 105 | 321 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
6 | 6 | - | - | ||||||||||||
Total assets
|
1,229 | 908 | 321 | - | ||||||||||||
Derivative liabilities(c)
|
(155 | ) | - | (119 | ) | (36 | ) | |||||||||
Net assets
|
$ | 1,074 | $ | 908 | $ | 202 | $ | (36 | ) | |||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
December 31, 2011
|
||||||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 690 | $ | 690 | $ | - | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
398 | 81 | 317 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
6 | 6 | - | - | ||||||||||||
Total assets
|
1,094 | 777 | 317 | - | ||||||||||||
Derivative liabilities(c)
|
(248 | ) | - | (224 | ) | (24 | ) | |||||||||
Net assets
|
$ | 846 | $ | 777 | $ | 93 | $ | (24 | ) |
(a)
|
Included in Other within Investments and Other Assets in the Consolidated Balance Sheets.
|
|||||||||||
(b)
|
Included in Prepayments and Other Current Assets within Current Assets and Other within Investments and Other Assets in the Consolidated Balance Sheets.
|
|||||||||||
(c)
|
Included in Derivative Liabilities within Current Liabilities and Other within Deferred Credits and Other Liabilities in the Consolidated Balance Sheets.
|
PEF
|
|
|
|
|
||||||||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
September 30, 2012
|
|
|
|
|
||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 429 | $ | 423 | $ | 6 | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
192 | 26 | 166 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
41 | 2 | 39 | - | ||||||||||||
Derivative assets(b)
|
1 | - | 1 | - | ||||||||||||
Total assets
|
663 | 451 | 212 | - | ||||||||||||
Derivative liabilities(c)
|
(276 | ) | - | (276 | ) | - | ||||||||||
Net assets
|
$ | 387 | $ | 451 | $ | (64 | ) | $ | - | |||||||
(in millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
December 31, 2011
|
||||||||||||||||
Nuclear decommissioning trust fund equity securities
|
$ | 372 | $ | 371 | $ | 1 | $ | - | ||||||||
Nuclear decommissioning trust fund debt securities and other
|
187 | 6 | 181 | - | ||||||||||||
Other long-term available-for-sale debt securities and other(a)
|
1 | 1 | - | - | ||||||||||||
Derivative assets(b)
|
5 | - | 5 | - | ||||||||||||
Total assets
|
565 | 378 | 187 | - | ||||||||||||
Derivative liabilities(c)
|
(499 | ) | - | (499 | ) | - | ||||||||||
Net assets
|
$ | 66 | $ | 378 | $ | (312 | ) | $ | - |
(a)
|
Included in Other within Investments and Other Assets in the Balance Sheets.
|
|||||||||||
(b)
|
Included in Prepayments and Other Current Assets within Current Assets and Other within Investments and Other Assets in the Balance Sheets.
|
|||||||||||
(c)
|
Included in Derivative Liabilities within Current Liabilities and Other within Deferred Credits and Other Liabilities in the Balance Sheets.
|
PROGRESS ENERGY
|
||||||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Derivatives, net at beginning of period
|
$ | 30 | $ | 37 | $ | 24 | $ | 36 | ||||||||
Total pre-tax realized or unrealized gains
included in earnings − regulated electric
|
(2 | ) | - | (2 | ) | - | ||||||||||
Total (gains) losses, included in the consolidated
Balance Sheet as regulatory asset or liability
|
(4 | ) | 6 | 2 | 7 | |||||||||||
Issuances
|
16 | - | 16 | - | ||||||||||||
Settlements
|
(4 | ) | - | (4 | ) | - | ||||||||||
Transfers into Level 3 − CVOs
|
- | 74 | - | 74 | ||||||||||||
Derivatives, net at end of period
|
$ | 36 | $ | 117 | $ | 36 | $ | 117 |
PEC
|
||||||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Derivatives, net at beginning of period
|
$ | 28 | $ | 37 | $ | 24 | $ | 36 | ||||||||
Total pre-tax realized or unrealized gains
included in earnings − regulated electric
|
(2 | ) | - | (2 | ) | - | ||||||||||
Total (gains) losses, included in the consolidated
Balance Sheet as regulatory asset or liability
|
(2 | ) | 5 | 2 | 6 | |||||||||||
Issuances
|
16 | - | 16 | - | ||||||||||||
Settlements
|
(4 | ) | - | (4 | ) | - | ||||||||||
Derivatives, net at end of period
|
$ | 36 | $ | 42 | $ | 36 | $ | 42 |
PROGRESS ENERGY
|
|||||||||||||
(in millions)
|
Fair
Value
|
Valuation
Technique
|
Unobservable
Input
|
Range
|
|||||||||
September 30, 2012
|
|
|
|
|
|||||||||
Commodity natural
gas hedges
|
$ | 27 |
Discounted cash flow
|
Forward natural gas curves -
price per MMBtu
|
$ | 4.178 | - | 4.588 | |||||
FERC mitigation
power sale agreements
|
9 |
Discounted cash flow
|
Forward electricity curves -
price per MWh
|
24.88 | - | 49.78 |
PEC
|
|||||||||||||
(in millions)
|
Fair
Value
|
Valuation
Technique
|
Unobservable
Input
|
Range
|
|||||||||
September 30, 2012
|
|
|
|||||||||||
Commodity natural
gas hedges
|
$ | 27 |
Discounted cash flow
|
Forward natural gas curves -
price per MMBtu
|
$ | 4.178 | - | 4.588 | |||||
FERC mitigation
power sale agreements
|
9 |
Discounted cash flow
|
Forward electricity curves -
price per MWh
|
24.88 | - | 49.78 |
|
September 30, 2012
|
December 31, 2011
|
||||||||||||||
(in millions)
|
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
||||||||||||
Progress Energy
|
$ | 13,776 | $ | 16,160 | $ | 13,152 | $ | 15,518 | ||||||||
PEC
|
4,838 | 5,352 | 4,206 | 4,735 | ||||||||||||
PEF
|
4,672 | 5,646 | 4,681 | 5,633 |
PROGRESS ENERGY
|
|
|
|
|||||||||
(in millions)
|
Fair Value
|
Unrealized
Losses
|
Unrealized
Gains
|
|||||||||
September 30, 2012
|
|
|
|
|||||||||
Nuclear decommissioning trust funds
|
|
|
|
|||||||||
Equity securities
|
$ | 1,226 | $ | 21 | $ | 534 | ||||||
Corporate debt securities
|
85 | - | 9 | |||||||||
Municipal bonds
|
134 | 1 | 10 | |||||||||
U.S. government bonds
|
295 | - | 17 | |||||||||
Other
|
104 | 1 | 3 | |||||||||
Total nuclear decommissioning trust funds
|
1,844 | 23 | 573 | |||||||||
Other investments
|
||||||||||||
Municipal bonds
|
39 | - | - | |||||||||
Other
|
21 | - | - | |||||||||
Total
|
$ | 1,904 | $ | 23 | $ | 573 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 1,062 | $ | 29 | $ | 412 | ||||||
Corporate debt securities
|
86 | - | 6 | |||||||||
Municipal bonds
|
127 | 2 | 7 | |||||||||
U.S. government bonds
|
268 | - | 18 | |||||||||
Other
|
87 | - | 1 | |||||||||
Total nuclear decommissioning trust funds
|
1,630 | 31 | 444 | |||||||||
Other investments
|
||||||||||||
Other
|
20 | - | - | |||||||||
Total
|
$ | 1,650 | $ | 31 | $ | 444 | ||||||
|
PEC
|
|
|
|
|||||||||
(in millions)
|
Fair Value
|
Unrealized
Losses
|
Unrealized
Gains
|
|||||||||
September 30, 2012
|
|
|
|
|||||||||
Nuclear decommissioning trust funds
|
|
|
|
|||||||||
Equity securities
|
$ | 797 | $ | 15 | $ | 340 | ||||||
Corporate debt securities
|
75 | - | 8 | |||||||||
Municipal bonds
|
61 | - | 4 | |||||||||
U.S. government bonds
|
230 | - | 15 | |||||||||
Other
|
60 | - | 1 | |||||||||
Total nuclear decommissioning trust funds
|
1,223 | 15 | 368 | |||||||||
Other investments
|
||||||||||||
Other
|
6 | - | - | |||||||||
Total
|
$ | 1,229 | $ | 15 | $ | 368 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 690 | $ | 20 | $ | 262 | ||||||
Corporate debt securities
|
69 | - | 5 | |||||||||
Municipal bonds
|
55 | - | 3 | |||||||||
U.S. government bonds
|
225 | - | 16 | |||||||||
Other
|
62 | - | 1 | |||||||||
Total nuclear decommissioning trust funds
|
1,101 | 20 | 287 | |||||||||
Other investments
|
||||||||||||
Other
|
6 | - | - | |||||||||
Total
|
$ | 1,107 | $ | 20 | $ | 287 |
PEF
|
||||||||||||
(in millions)
|
Fair Value
|
Unrealized
Losses
|
Unrealized
Gains
|
|||||||||
September 30, 2012
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 429 | $ | 6 | $ | 194 | ||||||
Corporate debt securities
|
10 | - | 1 | |||||||||
Municipal bonds
|
73 | 1 | 6 | |||||||||
U.S. government bonds
|
65 | - | 2 | |||||||||
Other
|
44 | 1 | 2 | |||||||||
Total nuclear decommissioning trust funds
|
621 | 8 | 205 | |||||||||
Other investments
|
||||||||||||
Municipal bonds
|
39 | - | - | |||||||||
Other
|
2 | - | - | |||||||||
Total
|
$ | 662 | $ | 8 | $ | 205 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 372 | $ | 9 | $ | 150 | ||||||
Corporate debt securities
|
17 | - | 1 | |||||||||
Municipal bonds
|
72 | 2 | 4 | |||||||||
U.S. government bonds
|
43 | - | 2 | |||||||||
Other
|
25 | - | - | |||||||||
Total nuclear decommissioning trust funds
|
529 | 11 | 157 | |||||||||
Other investments
|
||||||||||||
Other
|
1 | - | - | |||||||||
Total
|
$ | 530 | $ | 11 | $ | 157 |
(in millions)
|
< 1 Year
|
1-5 Years
|
6-10 Years
|
Thereafter
|
Total
|
|||||||||||||||
Progress Energy
|
$ | 13 | $ | 125 | $ | 136 | $ | 301 | $ | 575 | ||||||||||
PEC
|
11 | 102 | 72 | 194 | 379 | |||||||||||||||
PEF
|
2 | 18 | 55 | 82 | 157 |
PROGRESS ENERGY
|
|
|
|
|
||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Proceeds
|
$ | 274 | $ | 1,062 | $ | 794 | $ | 4,254 | ||||||||
Realized gains
|
8 | 9 | 23 | 24 | ||||||||||||
Realized losses
|
6 | 11 | 12 | 20 |
PEC
|
||||||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proceeds
|
$ | 101 | $ | 136 | $ | 351 | $ | 386 | ||||||||
Realized gains
|
4 | 4 | 14 | 10 | ||||||||||||
Realized losses
|
2 | 4 | 5 | 9 |
PEF
|
||||||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proceeds
|
$ | 173 | $ | 926 | $ | 443 | $ | 3,861 | ||||||||
Realized gains
|
4 | 5 | 9 | 14 | ||||||||||||
Realized losses
|
4 | 7 | 7 | 11 |
PROGRESS ENERGY
|
|
|
|
|||||||||
(in millions)
|
Fair Value
|
Unrealized
Loss Positions
> 12 months
|
Unrealized
Loss Positions
< 12 months
|
|||||||||
September 30, 2012
|
|
|
|
|||||||||
Nuclear decommissioning trust funds
|
|
|
|
|||||||||
Equity securities
|
$ | 89 | $ | 13 | $ | 8 | ||||||
Corporate debt securities
|
3 | - | - | |||||||||
Municipal bonds
|
14 | 1 | - | |||||||||
U.S. government bonds
|
10 | - | - | |||||||||
Other
|
1 | - | 1 | |||||||||
Total nuclear decommissioning trust funds
|
117 | 14 | 9 | |||||||||
Other investments
|
||||||||||||
Other
|
4 | - | - | |||||||||
Total
|
$ | 121 | $ | 14 | $ | 9 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 112 | $ | 10 | $ | 19 | ||||||
Corporate debt securities
|
20 | - | - | |||||||||
Municipal bonds
|
21 | 2 | - | |||||||||
U.S. government bonds
|
(23 | ) | - | - | ||||||||
Other
|
6 | - | - | |||||||||
Total
|
$ | 136 | $ | 12 | $ | 19 |
PEC
|
||||||||||||
(in millions)
|
Fair Value
|
Unrealized
Loss Positions
> 12 months
|
Unrealized
Loss Positions
< 12 months
|
|||||||||
September 30, 2012
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 56 | $ | 10 | $ | 5 | ||||||
Corporate debt securities
|
2 | - | - | |||||||||
Municipal bonds
|
5 | - | - | |||||||||
U.S. government bonds
|
11 | - | - | |||||||||
Other
|
- | - | - | |||||||||
Total
|
$ | 74 | $ | 10 | $ | 5 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 69 | $ | 10 | $ | 10 | ||||||
Corporate debt securities
|
10 | - | - | |||||||||
Municipal bonds
|
8 | - | - | |||||||||
U.S. government bonds
|
9 | - | - | |||||||||
Other
|
2 | - | - | |||||||||
Total
|
$ | 98 | $ | 10 | $ | 10 | ||||||
|
PEF
|
|
|
|
|||||||||
(in millions)
|
Fair Value
|
Unrealized
Loss Positions
> 12 months
|
Unrealized
Loss Positions
< 12 months
|
|||||||||
September 30, 2012
|
|
|
|
|||||||||
Nuclear decommissioning trust funds
|
|
|
|
|||||||||
Equity securities
|
$ | 33 | $ | 3 | $ | 3 | ||||||
Municipal bonds
|
9 | 1 | - | |||||||||
Other
|
1 | - | 1 | |||||||||
Total nuclear decommissioning trust funds
|
43 | 4 | 4 | |||||||||
Other investments
|
||||||||||||
Other
|
4 | - | - | |||||||||
Total
|
$ | 47 | $ | 4 | $ | 4 | ||||||
|
||||||||||||
December 31, 2011
|
||||||||||||
Nuclear decommissioning trust funds
|
||||||||||||
Equity securities
|
$ | 43 | $ | - | $ | 9 | ||||||
Corporate debt securities
|
10 | - | - | |||||||||
Municipal bonds
|
13 | 2 | - | |||||||||
U.S. government bonds
|
(32 | ) | - | - | ||||||||
Other
|
4 | - | - | |||||||||
Total
|
$ | 38 | $ | 2 | $ | 9 |
A. |
CONSOLIDATED VIEs
|
(in millions)
|
September 30, 2012
|
December 31, 2011
|
||||||
Net property, plant and equipment(a)
|
$ | 12 | $ | 12 | ||||
Prepayments and other current assets(a)
|
2 | 1 | ||||||
Net assets of consolidated VIEs
|
$ | 14 | $ | 13 |
(a) |
Progress Energy, through its subsidiary PEC, is the primary beneficiary of, and consolidates, an entity that qualifies for rehabilitation tax credits under Section 47 of the Internal Revenue Code. Our variable interests are debt and equity investments in the VIE. The assets of the VIE are collateral for, and can only be used to settle, its obligations. The creditors of the VIE do not have recourse to our general credit or the general credit of PEC, and there are no other arrangements that could expose us to losses.
|
B. | NON-CONSOLIDATED VIEs |
12. | BENEFIT PLANS |
PROGRESS ENERGY
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 16 | $ | 13 | $ | - | $ | - | $ | 5 | $ | 3 | ||||||||||||
Interest cost on projected benefit obligation
|
32 | 33 | 2 | 2 | 11 | 10 | ||||||||||||||||||
Expected return on plan assets
|
(48 | ) | (45 | ) | - | - | - | - | ||||||||||||||||
Amortization of prior service cost (a)
|
2 | 2 | - | - | - | - | ||||||||||||||||||
Amortization net transition liability(a)
|
- | - | - | - | 1 | 1 | ||||||||||||||||||
Amortization of actuarial loss(a)
|
24 | 15 | 1 | 1 | 10 | 3 | ||||||||||||||||||
Special termination costs
|
- | - | - | - | 5 | - | ||||||||||||||||||
Other
|
1 | - | - | - | - | - | ||||||||||||||||||
Net periodic cost
|
$ | 27 | $ | 18 | $ | 3 | $ | 3 | $ | 32 | $ | 17 |
(a)
|
Adjusted to reflect PEF’s rate treatment. See Note 17B in the 2011 Form 10-K.
|
PEC
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 6 | $ | 5 | $ | - | $ | - | $ | 2 | $ | 2 | ||||||||||||
Interest cost on projected benefit obligation
|
15 | 15 | 1 | 1 | 6 | 5 | ||||||||||||||||||
Expected return on plan assets
|
(25 | ) | (23 | ) | - | - | - | - | ||||||||||||||||
Amortization of prior service cost
|
2 | 1 | - | - | - | - | ||||||||||||||||||
Amortization net transition liability
|
- | - | - | - | - | - | ||||||||||||||||||
Amortization of actuarial loss
|
9 | 7 | - | - | 6 | 1 | ||||||||||||||||||
Special termination costs
|
- | - | - | - | 2 | - | ||||||||||||||||||
Other
|
1 | - | - | - | - | - | ||||||||||||||||||
Net periodic cost
|
$ | 8 | $ | 5 | $ | 1 | $ | 1 | $ | 16 | $ | 8 |
PEF
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 8 | $ | 6 | $ | - | $ | - | $ | 2 | $ | 1 | ||||||||||||
Interest cost on projected benefit obligation
|
14 | 14 | 1 | 1 | 4 | 4 | ||||||||||||||||||
Expected return on plan assets
|
(21 | ) | (19 | ) | - | - | - | - | ||||||||||||||||
Amortization net transition liability
|
- | - | - | - | 1 | 1 | ||||||||||||||||||
Amortization of actuarial loss
|
13 | 8 | - | - | 3 | 2 | ||||||||||||||||||
Special termination costs
|
- | - | - | - | 1 | - | ||||||||||||||||||
Net periodic cost
|
$ | 14 | $ | 9 | $ | 1 | $ | 1 | $ | 11 | $ | 8 |
PROGRESS ENERGY
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 47 | $ | 39 | $ | 1 | $ | 1 | $ | 12 | $ | 8 | ||||||||||||
Interest cost on projected benefit obligation
|
95 | 98 | 6 | 7 | 32 | 30 | ||||||||||||||||||
Expected return on plan assets
|
(141 | ) | (136 | ) | - | - | (1 | ) | (1 | ) | ||||||||||||||
Amortization of prior service cost (a)
|
7 | 5 | - | - | - | - | ||||||||||||||||||
Amortization of net transition liability(a)
|
- | - | - | - | 3 | 4 | ||||||||||||||||||
Amortization of actuarial loss(a)
|
69 | 47 | 3 | 2 | 25 | 9 | ||||||||||||||||||
Special termination cost
|
- | - | - | - | 5 | - | ||||||||||||||||||
Other
|
1 | - | - | - | - | - | ||||||||||||||||||
Net periodic cost
|
$ | 78 | $ | 53 | $ | 10 | $ | 10 | $ | 76 | $ | 50 |
(a)
|
Adjusted to reflect PEF’s rate treatment. See Note 17B in the 2011 Form 10-K.
|
PEC
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 19 | $ | 15 | $ | 1 | $ | 1 | $ | 6 | $ | 3 | ||||||||||||
Interest cost on projected benefit obligation
|
43 | 46 | 1 | 1 | 17 | 15 | ||||||||||||||||||
Expected return on plan assets
|
(72 | ) | (68 | ) | - | - | - | - | ||||||||||||||||
Amortization of prior service cost
|
6 | 4 | - | - | - | - | ||||||||||||||||||
Amortization of net transition liability
|
- | - | - | - | - | 1 | ||||||||||||||||||
Amortization of actuarial loss
|
28 | 19 | 1 | - | 14 | 4 | ||||||||||||||||||
Special termination cost
|
- | - | - | - | 2 | - | ||||||||||||||||||
Other
|
1 | - | - | - | - | - | ||||||||||||||||||
Net periodic cost
|
$ | 25 | $ | 16 | $ | 3 | $ | 2 | $ | 39 | $ | 23 |
PEF
|
|
|
|
|
||||||||||||||||||||
Qualified
|
Non-Qualified
|
Other Post-Retirement
|
||||||||||||||||||||||
Pension Plans
|
Pension Plans
|
Benefit Plans
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Service cost
|
$ | 22 | $ | 18 | $ | - | $ | - | $ | 5 | $ | 3 | ||||||||||||
Interest cost on projected benefit obligation
|
42 | 43 | 2 | 2 | 13 | 13 | ||||||||||||||||||
Expected return on plan assets
|
(61 | ) | (59 | ) | - | - | (1 | ) | (1 | ) | ||||||||||||||
Amortization of net transition liability
|
- | - | - | - | 2 | 3 | ||||||||||||||||||
Amortization of actuarial loss
|
36 | 25 | - | - | 9 | 6 | ||||||||||||||||||
Special termination cost
|
- | - | - | - | 1 | - | ||||||||||||||||||
Net periodic cost
|
$ | 39 | $ | 27 | $ | 2 | $ | 2 | $ | 29 | $ | 24 |
|
|
|||||||||||
|
Qualified Pension Benefits
|
Non-Qualified Pension Benefits
|
Other Post-Retirement Benefits
|
|||||||||
Discount rate
|
4.60 | % | 4.60 | % | 4.60 | % | ||||||
Rate of increase in future compensation
|
||||||||||||
Bargaining
|
4.00 | % | N/A | N/A | ||||||||
Supplementary plans
|
N/A | 5.25 | % | N/A | ||||||||
Expected long-term rate of return on plan assets
|
8.00 | % | N/A | N/A |
|
||||
Health care cost trend rate assumed for 2012
|
8.75 | % | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
5.00 | % | ||
Year that the rate reaches the ultimate trend rate
|
2020 | |||
|
|
|
|
|
||||||||||||
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
PEC
|
$ | 7 | $ | 6 | $ | 18 | $ | 18 | ||||||||
PEF
|
4 | 4 | 11 | 11 |
(in millions)
|
Three months ended
September 30, 2012
|
Nine months ended
September 30, 2012
|
||||||
Progress Energy
|
$ | 66 | $ | 66 | ||||
PEC
|
42 | 42 | ||||||
PEF
|
24 | 24 |
(in millions)
|
Balance at
December 31, 2011
|
Provisions /
Adjustments
|
Cash
Reductions
|
Balance at
September 30, 2012
|
||||||||||||
Progress Energy
|
$ | 5 | $ | 53 | $ | (15 | ) | $ | 43 | |||||||
PEC
|
5 | 26 | (7 | ) | 24 | |||||||||||
PEF
|
- | 10 | (3 | ) | 7 |
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Progress Energy
|
32.8 | % | 37.8 | % | 34.7 | % | 36.9 | % | ||||||||
PEC
|
31.9 | % | 33.4 | % | 31.6 | % | 34.2 | % | ||||||||
PEF
|
35.9 | % | 37.0 | % | 36.9 | % | 37.0 | % | ||||||||
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
PEC
|
$ | 33 | $ | 33 | $ | 85 | $ | 86 | ||||||||
PEF
|
62 | 63 | 156 | 159 | ||||||||||||
Progress Energy
|
$ | 95 | $ | 96 | $ | 241 | $ | 245 |
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||
(in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
PROGRESS ENERGY
|
|
|
|
|
||||||||||||
Corporate governance and shared services provided by Duke Energy(a)
|
$ | 31 | $ | - | $ | 31 | $ | - | ||||||||
Corporate governance and shared services provided to Duke Energy(b)
|
30 | - | 30 | - | ||||||||||||
JDA revenues(c)
|
37 | - | 37 | - | ||||||||||||
JDA expenses(d)
|
8 | - | 8 | - | ||||||||||||
Indemnification coverage expenses(e)
|
7 | - | 7 | - | ||||||||||||
PEC
|
||||||||||||||||
Corporate governance and shared service expenses(a)
|
$ | 72 | $ | 48 | $ | 183 | $ | 155 | ||||||||
JDA revenues(c)
|
37 | - | 37 | - | ||||||||||||
JDA expenses(d)
|
8 | - | 8 | - | ||||||||||||
Indemnification coverage expenses(e)
|
3 | - | 3 | - | ||||||||||||
PEF
|
||||||||||||||||
Corporate governance and shared service expenses(a)
|
$ | 52 | $ | 41 | $ | 136 | $ | 122 | ||||||||
Indemnification coverage expenses(e)
|
4 | - | 4 | - |
(a)
|
Progress Energy Registrants are charged their proportionate share of corporate governance and other costs by PESC (only applicable to PEC and PEF) and an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third-party costs. These expenses are recorded in O&M in the Statements of Operations and Comprehensive Income.
|
||||||||||
(b)
|
PESC charges a proportionate share of corporate governance and other costs to unconsolidated affiliates that are consolidated affiliates of Duke Energy. Corporate governance and other shared costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third-party costs. These charges are recorded as an offset to O&M in the Statements of Operations and Comprehensive Income.
|
||||||||||
(c)
|
Effective with the consummation of the merger, PEC and Duke Energy Carolinas began to participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customers' rates (See Note 4). The revenues from the sale of power to Duke Energy Carolinas are recorded in regulated electric revenues in the Consolidated Statements of Operations and Comprehensive Income.
|
||||||||||
(d)
|
Effective with the consummation of the merger, PEC and Duke Energy Carolinas began to participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customers' rates (See Note 4). The expenses from the purchase of power from Duke Energy Carolinas are recorded in fuel used in electric generation and purchased power in the Consolidated Statements of Operations and Comprehensive Income.
|
||||||||||
(e)
|
Effective with the consummation of the merger, Progress Energy Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy's wholly owned captive insurance subsidiary. These expenses are recorded in O&M in the Statements of Operations and Comprehensive Income.
|
Condensed Consolidating Statement of Operations and Comprehensive Income
|
||||||||||||||||||||
Three months ended September 30, 2012
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
Operating revenues
|
|
|
|
|
|
|||||||||||||||
Regulated electric
|
$ | - | $ | 1,382 | $ | 1,394 | $ | (1 | ) | $ | 2,775 | |||||||||
Non-regulated electric and other
|
- | 10 | 4 | (1 | ) | 13 | ||||||||||||||
Total operating revenues
|
- | 1,392 | 1,398 | (2 | ) | 2,788 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Fuel used in electric generation and purchased power
|
- | 799 | 597 | - | 1,396 | |||||||||||||||
Operation, maintenance and other
|
- | 247 | 378 | 1 | 626 | |||||||||||||||
Depreciation and amortization
|
- | 39 | 135 | - | 174 | |||||||||||||||
Property and other taxes
|
- | 100 | 63 | (3 | ) | 160 | ||||||||||||||
Impairment charges
|
- | - | 55 | - | 55 | |||||||||||||||
Total operating expenses
|
- | 1,185 | 1,228 | (2 | ) | 2,411 | ||||||||||||||
Gains on sales of other assets and other, net
|
- | 1 | 1 | - | 2 | |||||||||||||||
Operating income
|
- | 208 | 171 | - | 379 | |||||||||||||||
Equity in earnings of consolidated subsidiaries
|
203 | - | - | (203 | ) | - | ||||||||||||||
Other income and expenses, net
|
(1 | ) | 12 | 23 | (2 | ) | 32 | |||||||||||||
Interest expense, net
|
63 | 67 | 53 | (1 | ) | 182 | ||||||||||||||
Income from continuing operations before
income taxes
|
139 | 153 | 141 | (204 | ) | 229 | ||||||||||||||
Income tax (benefit) expense from continuing
operations
|
(16 | ) | 55 | 43 | (7 | ) | 75 | |||||||||||||
Income from continuing operations
|
155 | 98 | 98 | (197 | ) | 154 | ||||||||||||||
Income from discontinued operations, net of tax
|
- | 2 | 1 | - | 3 | |||||||||||||||
Net income
|
155 | 100 | 99 | (197 | ) | 157 | ||||||||||||||
Less: Net income attributable to noncontrolling
interests
|
- | 1 | - | 1 | 2 | |||||||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 155 | $ | 99 | $ | 99 | $ | (198 | ) | $ | 155 | |||||||||
Comprehensive income, net of tax
|
||||||||||||||||||||
Comprehensive income
|
$ | 253 | $ | 118 | $ | 170 | $ | (286 | ) | $ | 255 | |||||||||
Comprehensive income attributable to noncontrolling
interests, net of tax
|
- | (1 | ) | - | (1 | ) | (2 | ) | ||||||||||||
Comprehensive income attributable to Duke Energy
Corporation
|
$ | 253 | $ | 117 | $ | 170 | $ | (287 | ) | $ | 253 | |||||||||
|
Condensed Consolidating Statement of Operations and Comprehensive Income
|
||||||||||||||||||||
Three months ended September 30, 2011
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
Operating revenues
|
|
|
|
|
|
|||||||||||||||
Regulated electric
|
$ | - | $ | 1,414 | $ | 1,330 | $ | (1 | ) | $ | 2,743 | |||||||||
Non-regulated electric and other
|
- | 9 | 2 | (1 | ) | 10 | ||||||||||||||
Total operating revenues
|
- | 1,423 | 1,332 | (2 | ) | 2,753 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Fuel used in electric generation and purchased power
|
- | 690 | 544 | - | 1,234 | |||||||||||||||
Operation, maintenance and other
|
2 | 225 | 265 | 2 | 494 | |||||||||||||||
Depreciation and amortization
|
- | 39 | 136 | - | 175 | |||||||||||||||
Property and other taxes
|
- | 106 | 58 | - | 164 | |||||||||||||||
Total operating expenses
|
2 | 1,060 | 1,003 | 2 | 2,067 | |||||||||||||||
Gains on sales of other assets and other, net
|
- | 1 | - | - | 1 | |||||||||||||||
Operating (loss) income
|
(2 | ) | 364 | 329 | (4 | ) | 687 | |||||||||||||
Equity in earnings of consolidated subsidiaries
|
391 | - | - | (391 | ) | - | ||||||||||||||
Other income and expenses, net
|
(63 | ) | 2 | 14 | 3 | (44 | ) | |||||||||||||
Interest expense, net
|
80 | 52 | 41 | (1 | ) | 172 | ||||||||||||||
Income from continuing operations before
income taxes
|
246 | 314 | 302 | (391 | ) | 471 | ||||||||||||||
Income tax (benefit) expense from continuing
operations
|
(45 | ) | 116 | 103 | 4 | 178 | ||||||||||||||
Income from continuing operations
|
291 | 198 | 199 | (395 | ) | 293 | ||||||||||||||
Income (loss) from discontinued operations, net
of tax
|
- | 1 | (1 | ) | - | - | ||||||||||||||
Net income
|
291 | 199 | 198 | (395 | ) | 293 | ||||||||||||||
Less: Net income attributable to noncontrolling
interests
|
- | 1 | - | 1 | 2 | |||||||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 291 | $ | 198 | $ | 198 | $ | (396 | ) | $ | 291 | |||||||||
Comprehensive income, net of tax
|
||||||||||||||||||||
Comprehensive income
|
$ | 226 | $ | 182 | $ | 165 | $ | (345 | ) | $ | 228 | |||||||||
Comprehensive income attributable to noncontrolling
interests, net of tax
|
- | (1 | ) | - | (1 | ) | (2 | ) | ||||||||||||
Comprehensive income attributable to Duke Energy
Corporation
|
$ | 226 | $ | 181 | $ | 165 | $ | (346 | ) | $ | 226 | |||||||||
|
Condensed Consolidating Statement of Operations and Comprehensive Income
|
||||||||||||||||||||
Nine months ended September 30, 2012
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries |
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
Operating revenues
|
|
|
|
|
|
|||||||||||||||
Regulated electric
|
$ | - | $ | 3,576 | $ | 3,561 | $ | (2 | ) | $ | 7,135 | |||||||||
Non-regulated electric and other
|
- | 26 | 17 | - | 43 | |||||||||||||||
Total operating revenues
|
- | 3,602 | 3,578 | (2 | ) | 7,178 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Fuel used in electric generation and purchased power
|
- | 1,849 | 1,450 | - | 3,299 | |||||||||||||||
Operation, maintenance and other
|
4 | 668 | 1,120 | 6 | 1,798 | |||||||||||||||
Depreciation and amortization
|
- | 158 | 413 | - | 571 | |||||||||||||||
Property and other taxes
|
- | 272 | 175 | (7 | ) | 440 | ||||||||||||||
Impairment charges
|
- | - | 55 | - | 55 | |||||||||||||||
Total operating expenses
|
4 | 2,947 | 3,213 | (1 | ) | 6,163 | ||||||||||||||
Gains on sales of other assets and other, net
|
- | 2 | 2 | - | 4 | |||||||||||||||
Operating (loss) income
|
(4 | ) | 657 | 367 | (1 | ) | 1,019 | |||||||||||||
Equity in earnings of consolidated subsidiaries
|
489 | - | - | (489 | ) | - | ||||||||||||||
Other income and expenses, net
|
8 | 32 | 58 | (1 | ) | 97 | ||||||||||||||
Interest expense, net
|
193 | 210 | 157 | - | 560 | |||||||||||||||
Income from continuing operations before
income taxes
|
300 | 479 | 268 | (491 | ) | 556 | ||||||||||||||
Income tax (benefit) expense from continuing
operations
|
(68 | ) | 177 | 88 | (4 | ) | 193 | |||||||||||||
Income from continuing operations
|
368 | 302 | 180 | (487 | ) | 363 | ||||||||||||||
Income from discontinued operations, net
of tax
|
- | 10 | - | - | 10 | |||||||||||||||
Net income
|
368 | 312 | 180 | (487 | ) | 373 | ||||||||||||||
Less: Net income attributable to noncontrolling
interests
|
- | 3 | - | 2 | 5 | |||||||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 368 | $ | 309 | $ | 180 | $ | (489 | ) | $ | 368 | |||||||||
Comprehensive income, net of tax
|
||||||||||||||||||||
Comprehensive income
|
$ | 467 | $ | 331 | $ | 250 | $ | (576 | ) | $ | 472 | |||||||||
Comprehensive income attributable to noncontrolling
interests, net of tax
|
- | (3 | ) | - | (2 | ) | (5 | ) | ||||||||||||
Comprehensive income attributable to Duke Energy
Corporation
|
$ | 467 | $ | 328 | $ | 250 | $ | (578 | ) | $ | 467 | |||||||||
|
Condensed Consolidating Statement of Operations and Comprehensive Income
|
||||||||||||||||||||
Nine months ended September 30, 2011
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
Operating revenues
|
|
|
|
|
|
|||||||||||||||
Regulated electric
|
$ | - | $ | 3,639 | $ | 3,524 | $ | (2 | ) | $ | 7,161 | |||||||||
Non-regulated electric and other
|
- | 24 | 11 | - | 35 | |||||||||||||||
Total operating revenues
|
- | 3,663 | 3,535 | (2 | ) | 7,196 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Fuel used in electric generation and purchased power
|
- | 1,804 | 1,382 | - | 3,186 | |||||||||||||||
Operation, maintenance and other
|
6 | 659 | 829 | 6 | 1,500 | |||||||||||||||
Depreciation and amortization
|
- | 112 | 396 | - | 508 | |||||||||||||||
Property and other taxes
|
- | 274 | 168 | (5 | ) | 437 | ||||||||||||||
Total operating expenses
|
6 | 2,849 | 2,775 | 1 | 5,631 | |||||||||||||||
Gains on sales of other assets and other, net
|
- | 2 | - | - | 2 | |||||||||||||||
Operating (loss) income
|
(6 | ) | 816 | 760 | (3 | ) | 1,567 | |||||||||||||
Equity in earnings of consolidated subsidiaries
|
832 | - | - | (832 | ) | - | ||||||||||||||
Other income and expenses, net
|
(59 | ) | 25 | 54 | 1 | 21 | ||||||||||||||
Interest expense, net
|
216 | 193 | 134 | (1 | ) | 542 | ||||||||||||||
Income from continuing operations before
income taxes
|
551 | 648 | 680 | (833 | ) | 1,046 | ||||||||||||||
Income tax (benefit) expense from continuing
operations
|
(100 | ) | 240 | 243 | 3 | 386 | ||||||||||||||
Income from continuing operations
|
651 | 408 | 437 | (836 | ) | 660 | ||||||||||||||
Loss from discontinued operations, net of tax
|
- | (2 | ) | (2 | ) | - | (4 | ) | ||||||||||||
Net income
|
651 | 406 | 435 | (836 | ) | 656 | ||||||||||||||
Less: Net income attributable to noncontrolling
interests
|
- | 3 | - | 2 | 5 | |||||||||||||||
Net income attributable to Duke Energy Corporation
|
$ | 651 | $ | 403 | $ | 435 | $ | (838 | ) | $ | 651 | |||||||||
Comprehensive income, net of tax
|
||||||||||||||||||||
Comprehensive income
|
$ | 569 | $ | 384 | $ | 393 | $ | (772 | ) | $ | 574 | |||||||||
Comprehensive income attributable to noncontrolling
interests, net of tax
|
- | (3 | ) | - | (2 | ) | (5 | ) | ||||||||||||
Comprehensive income attributable to Duke Energy
Corporation
|
$ | 569 | $ | 381 | $ | 393 | $ | (774 | ) | $ | 569 | |||||||||
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|||||||||||||||
Current assets
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 38 | $ | 19 | $ | - | $ | 57 | ||||||||||
Receivables, net
|
- | 435 | 495 | - | 930 | |||||||||||||||
Notes receivable from affiliated companies
|
676 | - | 209 | (885 | ) | - | ||||||||||||||
Inventory
|
- | 618 | 749 | (1 | ) | 1,366 | ||||||||||||||
Prepayments and other current assets
|
59 | 417 | 293 | (96 | ) | 673 | ||||||||||||||
Total current assets
|
735 | 1,508 | 1,765 | (982 | ) | 3,026 | ||||||||||||||
Investments and other assets
|
||||||||||||||||||||
Nuclear decommissioning trust funds
|
- | 621 | 1,223 | - | 1,844 | |||||||||||||||
Investment in consolidated subsidiaries
|
14,171 | - | - | (14,171 | ) | - | ||||||||||||||
Goodwill
|
- | - | - | 3,655 | 3,655 | |||||||||||||||
Other
|
151 | 232 | 695 | (546 | ) | 532 | ||||||||||||||
Total investments and other assets
|
14,322 | 853 | 1,918 | (11,062 | ) | 6,031 | ||||||||||||||
Net property, plant and equipment
|
- | 10,885 | 13,126 | 156 | 24,167 | |||||||||||||||
Regulatory assets and deferred debits
|
||||||||||||||||||||
Regulatory assets
|
- | 1,446 | 1,885 | - | 3,331 | |||||||||||||||
Other
|
23 | 49 | 30 | (6 | ) | 96 | ||||||||||||||
Total regulatory assets and deferred debits
|
23 | 1,495 | 1,915 | (6 | ) | 3,427 | ||||||||||||||
Total assets
|
$ | 15,080 | $ | 14,741 | $ | 18,724 | $ | (11,894 | ) | $ | 36,651 | |||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||
Current maturities of long-term debt
|
$ | - | $ | 435 | $ | 403 | $ | - | $ | 838 | ||||||||||
Notes payable to affiliated companies
|
843 | 431 | 246 | (885 | ) | 635 | ||||||||||||||
Other
|
75 | 1,120 | 1,164 | (96 | ) | 2,263 | ||||||||||||||
Total current liabilities
|
918 | 1,986 | 1,813 | (981 | ) | 3,736 | ||||||||||||||
Long-term debt
|
3,992 | 4,237 | 4,435 | - | 12,664 | |||||||||||||||
Long-term debt, affiliate
|
- | 309 | - | (35 | ) | 274 | ||||||||||||||
Deferred credits and other liabilities
|
||||||||||||||||||||
Deferred income taxes
|
- | 960 | 2,091 | (542 | ) | 2,509 | ||||||||||||||
Asset retirement obligations
|
- | 514 | 1,623 | - | 2,137 | |||||||||||||||
Regulatory liabilities
|
- | 880 | 1,667 | 157 | 2,704 | |||||||||||||||
Other
|
20 | 923 | 1,432 | 6 | 2,381 | |||||||||||||||
Total deferred credits and other liabilities
|
20 | 3,277 | 6,813 | (379 | ) | 9,731 | ||||||||||||||
Preferred stock of subsidiaries
|
- | 34 | 59 | - | 93 | |||||||||||||||
Equity
|
||||||||||||||||||||
Common shareholders' equity
|
10,150 | 4,895 | 5,604 | (10,499 | ) | 10,150 | ||||||||||||||
Noncontrolling interests
|
- | 3 | - | - | 3 | |||||||||||||||
Total equity
|
10,150 | 4,898 | 5,604 | (10,499 | ) | 10,153 | ||||||||||||||
Total liabilities and equity
|
$ | 15,080 | $ | 14,741 | $ | 18,724 | $ | (11,894 | ) | $ | 36,651 |
Condensed Consolidating Balance Sheet
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|||||||||||||||
Current assets
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents
|
$ | 117 | $ | 92 | $ | 21 | $ | - | $ | 230 | ||||||||||
Receivables, net
|
- | 367 | 516 | - | 883 | |||||||||||||||
Notes receivable from affiliated companies
|
53 | - | 219 | (272 | ) | - | ||||||||||||||
Inventory
|
- | 659 | 770 | - | 1,429 | |||||||||||||||
Prepayments and other current assets
|
127 | 418 | 297 | (64 | ) | 778 | ||||||||||||||
Total current assets
|
297 | 1,536 | 1,823 | (336 | ) | 3,320 | ||||||||||||||
Investments and other assets
|
||||||||||||||||||||
Nuclear decommissioning trust funds
|
- | 559 | 1,088 | - | 1,647 | |||||||||||||||
Investment in consolidated subsidiaries
|
14,043 | - | - | (14,043 | ) | - | ||||||||||||||
Goodwill
|
- | - | - | 3,655 | 3,655 | |||||||||||||||
Other
|
118 | 189 | 675 | (478 | ) | 504 | ||||||||||||||
Total investments and other assets
|
14,161 | 748 | 1,763 | (10,866 | ) | 5,806 | ||||||||||||||
Net property, plant and equipment
|
- | 10,455 | 11,677 | 160 | 22,292 | |||||||||||||||
Regulatory assets and deferred debits
|
||||||||||||||||||||
Regulatory assets
|
- | 1,629 | 1,795 | - | 3,424 | |||||||||||||||
Other
|
22 | 51 | 22 | (6 | ) | 89 | ||||||||||||||
Total regulatory assets and deferred debits
|
22 | 1,680 | 1,817 | (6 | ) | 3,513 | ||||||||||||||
Total assets
|
$ | 14,480 | $ | 14,419 | $ | 17,080 | $ | (11,048 | ) | $ | 34,931 | |||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||
Notes payable and commercial paper
|
$ | 250 | $ | 233 | $ | 188 | $ | - | $ | 671 | ||||||||||
Current maturities of long-term debt
|
450 | 10 | 502 | (1 | ) | 961 | ||||||||||||||
Notes payable to affiliated companies
|
- | 238 | 34 | (272 | ) | - | ||||||||||||||
Other
|
199 | 1,030 | 1,221 | (63 | ) | 2,387 | ||||||||||||||
Total current liabilities
|
899 | 1,511 | 1,945 | (336 | ) | 4,019 | ||||||||||||||
Long-term debt
|
3,543 | 4,671 | 3,704 | - | 11,918 | |||||||||||||||
Long-term debt, affiliate
|
- | 309 | - | (36 | ) | 273 | ||||||||||||||
Deferred credits and other liabilities
|
||||||||||||||||||||
Deferred income taxes
|
- | 757 | 1,903 | (467 | ) | 2,193 | ||||||||||||||
Asset retirement obligations
|
- | 369 | 896 | - | 1,265 | |||||||||||||||
Regulatory liabilities
|
- | 1,024 | 1,543 | 160 | 2,727 | |||||||||||||||
Other
|
17 | 1,012 | 1,384 | 5 | 2,418 | |||||||||||||||
Total deferred credits and other liabilities
|
17 | 3,162 | 5,726 | (302 | ) | 8,603 | ||||||||||||||
Preferred stock of subsidiaries
|
- | 34 | 59 | - | 93 | |||||||||||||||
Equity
|
||||||||||||||||||||
Common shareholders' equity
|
10,021 | 4,728 | 5,646 | (10,374 | ) | 10,021 | ||||||||||||||
Noncontrolling interests
|
- | 4 | - | - | 4 | |||||||||||||||
Total equity
|
10,021 | 4,732 | 5,646 | (10,374 | ) | 10,025 | ||||||||||||||
Total liabilities and equity
|
$ | 14,480 | $ | 14,419 | $ | 17,080 | $ | (11,048 | ) | $ | 34,931 |
Condensed Consolidating Statement of Cash Flows
|
||||||||||||||||||||
Nine months ended September 30, 2012
|
||||||||||||||||||||
(in millions)
|
Parent
|
Subsidiary
Guarantor
|
Non-
Guarantor
Subsidiaries
|
Other
|
Progress
Energy,
Inc.
|
|||||||||||||||
Net cash provided by operating activities
|
$ | 335 | $ | 733 | $ | 865 | $ | (483 | ) | $ | 1,450 | |||||||||
Investing activities
|
||||||||||||||||||||
Capital expenditures
|
- | (573 | ) | (1,122 | ) | - | (1,695 | ) | ||||||||||||
Purchases of available-for-sale securities
|
- | (562 | ) | (385 | ) | - | (947 | ) | ||||||||||||
Proceeds from sales and maturities of available-for-sale
securities
|
- | 561 | 359 | 1 | 921 | |||||||||||||||
Notes due from affiliate
|
(624 | ) | - | 10 | 614 | - | ||||||||||||||
Other
|
24 | 13 | 75 | - | 112 | |||||||||||||||
Net cash used by investing activities
|
(600 | ) | (561 | ) | (1,063 | ) | 615 | (1,609 | ) | |||||||||||
Financing activities
|
||||||||||||||||||||
Proceeds from the:
|
||||||||||||||||||||
Issuance of long-term debt
|
444 | - | 988 | - | 1,432 | |||||||||||||||
Issuance of common stock related to employee
benefit plans
|
6 | - | - | - | 6 | |||||||||||||||
Payments for the redemption of long-term debt
|
(450 | ) | (9 | ) | (502 | ) | - | (961 | ) | |||||||||||
Notes payable and commercial paper
|
(250 | ) | (233 | ) | (188 | ) | - | (671 | ) | |||||||||||
Distributions to noncontrolling interests
|
- | (3 | ) | - | (3 | ) | (6 | ) | ||||||||||||
Dividends paid
|
(445 | ) | - | - | - | (445 | ) | |||||||||||||
Dividends paid to parent
|
- | (173 | ) | (310 | ) | 483 | - | |||||||||||||
Notes payable to affiliate
|
843 | 193 | 212 | (613 | ) | 635 | ||||||||||||||
Other
|
- | (1 | ) | (4 | ) | 1 | (4 | ) | ||||||||||||
Net cash provided (used) by financing activities
|
148 | (226 | ) | 196 | (132 | ) | (14 | ) | ||||||||||||
Net decrease in cash and cash equivalents
|
(117 | ) | (54 | ) | (2 | ) | - | (173 | ) | |||||||||||
Cash and cash equivalents at beginning of period
|
117 | 92 | 21 | - | 230 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 38 | $ | 19 | $ | - | $ | 57 |
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 | $ | 863 | $ | (928 | ) | $ | 1,258 | |||||||||
Investing activities
|
||||||||||||||||||||
Capital expenditures
|
- | (626 | ) | (1,021 | ) | - | (1,647 | ) | ||||||||||||
Purchases of available-for-sale securities
|
- | (4,099 | ) | (438 | ) | - | (4,537 | ) | ||||||||||||
Proceeds from sales and maturities of available-for-sale
securities
|
- | 4,101 | 408 | - | 4,509 | |||||||||||||||
Notes due from affiliate
|
(83 | ) | 22 | (23 | ) | 84 | - | |||||||||||||
Contributions to consolidated subsidiaries
|
(11 | ) | - | - | 11 | - | ||||||||||||||
Other
|
(6 | ) | 102 | 5 | (1 | ) | 100 | |||||||||||||
Net cash used by investing activities
|
(100 | ) | (500 | ) | (1,069 | ) | 94 | (1,575 | ) | |||||||||||
Financing activities
|
||||||||||||||||||||
Proceeds from the:
|
||||||||||||||||||||
Issuance of long-term debt
|
494 | 296 | 496 | - | 1,286 | |||||||||||||||
Issuance of common stock related to employee
benefit plans
|
42 | - | - | - | 42 | |||||||||||||||
Payments for the redemption of long-term debt
|
(700 | ) | (309 | ) | (1 | ) | - | (1,010 | ) | |||||||||||
Notes payable and commercial paper
|
45 | - | - | - | 45 | |||||||||||||||
Distributions to noncontrolling interests
|
- | (4 | ) | - | (2 | ) | (6 | ) | ||||||||||||
Dividends paid
|
(550 | ) | - | - | - | (550 | ) | |||||||||||||
Dividends paid to parent
|
- | (478 | ) | (450 | ) | 928 | - | |||||||||||||
Notes payable to affiliate
|
- | 84 | - | (84 | ) | - | ||||||||||||||
Contributions from parent
|
- | 10 | 1 | (11 | ) | - | ||||||||||||||
Other
|
- | 1 | (2 | ) | 3 | 2 | ||||||||||||||
Net cash (used) provided by financing activities
|
(669 | ) | (400 | ) | 44 | 834 | (191 | ) | ||||||||||||
Net decrease in cash and cash equivalents
|
(110 | ) | (236 | ) | (162 | ) | - | (508 | ) | |||||||||||
Cash and cash equivalents at beginning of period
|
110 | 270 | 231 | - | 611 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 34 | $ | 69 | $ | - | $ | 103 |
|
Nine months ended September 30
|
|||||||||||
(in millions)
|
2012
|
2011
|
Increase
(decrease)
|
|||||||||
Operating revenues
|
$ | 7,178 | $ | 7,196 | $ | (18 | ) | |||||
Operating expenses
|
6,163 | 5,631 | 532 | |||||||||
Gains on sale of other assets and other, net
|
4 | 2 | 2 | |||||||||
Operating income
|
1,019 | 1,567 | (548 | ) | ||||||||
Other income and expenses, net
|
97 | 21 | 76 | |||||||||
Interest expense
|
560 | 542 | 18 | |||||||||
Income before income taxes
|
556 | 1,046 | (490 | ) | ||||||||
Income tax expense
|
193 | 386 | (193 | ) | ||||||||
Income (loss) from discontinued operations, net of tax
|
10 | (4 | ) | 14 | ||||||||
Less: net income attributable to noncontrolling interests
|
5 | 5 | - | |||||||||
Net income attributable to Duke Energy Corporation
|
$ | 368 | $ | 651 | $ | (283 | ) | |||||
|
·
|
A $141 million decrease in sales to retail customers primarily due to unfavorable weather conditions. The Utilities’ weather statistics for heating degree days in 2012 were more unfavorable compared to the same period in 2011, while weather statistics for cooling degree days were less favorable in 2012 compared to the same period in 2011.
|
·
|
A $93 million increase in sales to wholesale customers primarily due to JDA revenues from Duke Energy Carolinas (See Note 4A), the impact of an amended capacity contract with a major customer that began in 2012 and new contracts with major customers;
|
·
|
A $14 million increase in other operating revenues at PEF primarily due to higher OATT rates; and
|
·
|
A $13 million increase in clause-recoverable regulatory revenues at PEC primarily due to increased spending on new and existing DSM programs.
|
·
|
A $298 million increase in O&M expense primarily due to higher costs to achieve the merger with Duke Energy and PEC's higher nuclear plant outage costs;
|
·
|
A $113 million increase in fuel used in electric generation and purchased power primarily due to an increase in deferred fuel expense at PEF due to higher under-recovered fuel costs in 2011 as a result of higher system requirements driven by 2011’s favorable weather conditions and the impact of establishing a regulatory liability for replacement power in accordance with PEF’s 2012 settlement agreement (See Note 4B), partially offset by lower natural gas prices and lower system requirements as result of unfavorable weather conditions in 2012 at PEF;
|
·
|
A $63 million increase in depreciation and amortization primarily due to a decrease in the reduction of the cost of removal component of amortization expense as allowed under PEF’s 2012 and 2010 settlement agreements (See Note 4B), higher ECRC amortization due to less over-recovery at PEF and higher depreciable asset base at PEC, partially offset by lower nuclear cost-recovery amortization primarily related to the Levy project; and
|
·
|
A $55 million increase in impairment charges primarily due to the probable disallowance of transmission project costs, which are a portion of the FERC Mitigation charges included in the costs to achieve the merger with Duke Energy (See Note 2).
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
||||||||||||||||||||||
(in millions)
|
2012
|
2011
|
Increase
(decrease)
|
2012
|
2011
|
Increase
(decrease)
|
||||||||||||||||||
Operating revenues
|
$ | 1,398 | $ | 1,331 | $ | 67 | $ | 3,578 | $ | 3,534 | $ | 44 | ||||||||||||
Operating expenses
|
1,227 | 1,007 | 220 | 3,218 | 2,792 | 426 | ||||||||||||||||||
Gains on sale of other assets
and other, net
|
1 | - | 1 | 2 | 1 | 1 | ||||||||||||||||||
Operating income
|
172 | 324 | (152 | ) | 362 | 743 | (381 | ) | ||||||||||||||||
Other income and expenses, net
|
21 | 16 | 5 | 57 | 55 | 2 | ||||||||||||||||||
Interest expense
|
52 | 41 | 11 | 156 | 134 | 22 | ||||||||||||||||||
Income before income taxes
|
141 | 299 | (158 | ) | 263 | 664 | (401 | ) | ||||||||||||||||
Income tax expense
|
45 | 100 | (55 | ) | 83 | 227 | (144 | ) | ||||||||||||||||
Less: preferred stock dividend
requirement
|
1 | 1 | - | 2 | 2 | - | ||||||||||||||||||
Net income available to parent
|
$ | 95 | $ | 198 | $ | (103 | ) | $ | 178 | $ | 435 | $ | (257 | ) | ||||||||||
|
||||||||||||||||||||||||
Gigawatt-hours sales
|
17,331 | 16,028 | 1,303 | 43,964 | 43,614 | 350 | ||||||||||||||||||
|
Increase (decrease) over prior year
|
|
Three Months Ended
September 30, 2012
|
Nine Months Ended
September 30, 2012
|
||||||
Residential sales(a)
|
|
(3.9) % |
|
(10.8) % |
|
||||
General service sales(a)
|
|
1.2 % |
|
(1.9) % |
|
||||
Industrial sales(a)
|
|
(3.4) % |
|
(1.9) % |
|
||||
Wholesale power sales
|
|
48.9 % |
(c)
|
19.1 % |
(c)
|
||||
Total PEC sales(b)
|
|
8.1 % |
|
0.8 % |
|
||||
Average number of customers
|
|
0.9 % |
|
0.8 % |
|
(a)
|
Major components of PEC's retail sales.
|
|
|||||||
(b)
|
Consists of all components of PEC's sales, including all billed and unbilled retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers.
|
|
|||||||
(c)
|
Increase is primarily due to sales related to the JDA with Duke Energy Carolinas and Interim FERC Mitigation as a result of the consummation of the merger (See Note 4A). Higher sales from the JDA did not have a material impact on earnings as the higher revenues were offset by higher related fuel expense.
|
|
·
|
A $65 million increase in sales to wholesale customers primarily due to JDA revenues from Duke Energy Carolinas and a new contract that began in July 2012; and
|
·
|
A $31 million increase in fuel revenues driven primarily by Interim FERC Mitigation wholesale fuel revenue. Fuel revenues represent sales to retail and wholesale customers.
|
·
|
A $33 million decrease in sales to retail customers primarily due to unfavorable weather conditions. The number of cooling degree days for the three months ended September 30, 2012 was 3% above normal compared to 17% above normal in the same period in 2011. In addition, heating degree days for the three months ended September 30, 2012 were 11% below normal compared to 27% above normal in the same period in 2011.
|
·
|
A $111 million increase in O&M expenses primarily due to higher costs to achieve the merger with Duke Energy and the prior-year non-capital portion of a favorable judgment from spent fuel litigation, partially offset by lower storm costs;
|
·
|
A $55 million increase in impairment charges primarily due to the probable disallowance of transmission project costs, which are a portion of the FERC Mitigation charges included in the costs to achieve the merger with Duke Energy; and
|
·
|
A $53 million increase in fuel used in electric generation and purchased power primarily due to higher volume driven by the JDA and Interim FERC Mitigation.
|
·
|
A $71 million increase in sales to wholesale customers primarily due to JDA revenues from Duke Energy Carolinas, the impact of an amended capacity contract with a major customer that began in May 2012 and a new contract that began in July 2012;
|
·
|
A $40 million increase in fuel revenues driven primarily by Interim FERC Mitigation wholesale fuel revenue; and
|
·
|
A $13 million increase in clause-recoverable regulatory revenues primarily due to increased spending on new and existing DSM programs.
|
·
|
An $89 million decrease in sales to retail customers primarily due to unfavorable weather conditions. The number of heating degree days for the nine months ended September 30, 2012 was 28% below normal compared to 5% below normal in the same period in 2011. In addition, cooling degree days for the nine months ended September 30, 2012 were 4% above normal compared to 22% above normal in the same period in 2011.
|
·
|
A $283 million increase in O&M expenses primarily due to higher nuclear plant outage costs, higher costs to achieve the merger with Duke Energy and the prior-year non-capital portion of a favorable judgment from spent fuel litigation, partially offset by lower storm costs. The higher nuclear plant outage costs are primarily due to three extended nuclear refueling outages in 2012 compared to only one outage during the same period in 2011; and
|
·
|
A $68 million increase in fuel used in electric generation and purchased power primarily due to the impact of higher rates and a change in generation mix, which was driven by nuclear refueling outages in 2012, partially offset by a lower disallowance of replacement power costs resulting from the performance of nuclear plants and the impact of lower system requirements resulting from unfavorable weather conditions; and
|
·
|
A $55 million increase in impairment charges primarily due to the probable disallowance of transmission project costs, which are a portion of the FERC Mitigation charges included in the costs to achieve the merger with Duke Energy.
|
|
Nine months ended September 30
|
|||||||||||
(in millions)
|
2012
|
2011
|
Increase
(decrease)
|
|||||||||
Operating revenues
|
$ | 3,594 | $ | 3,655 | $ | (61 | ) | |||||
Operating expenses
|
2,938 | 2,842 | 96 | |||||||||
Gains on sale of other assets and other, net
|
2 | 2 | - | |||||||||
Operating income
|
658 | 815 | (157 | ) | ||||||||
Other income and expenses, net
|
29 | 24 | 5 | |||||||||
Interest expense
|
194 | 176 | 18 | |||||||||
Income before income taxes
|
493 | 663 | (170 | ) | ||||||||
Income tax expense
|
182 | 245 | (63 | ) | ||||||||
Less: preferred stock dividend requirement
|
1 | 1 | - | |||||||||
Net income available to parent
|
$ | 310 | $ | 417 | $ | (107 | ) | |||||
|
||||||||||||
Gigawatt-hours sales
|
29,814 | 31,306 | (1,492 | ) | ||||||||
|
Increase (decrease) over prior year
|
|
Three months ended
September 30, 2012
|
Nine months ended
September 30, 2012
|
|||||
Residential sales(a)
|
|
(7.6)
|
%
|
(7.9)
|
%
|
|||
General service sales(a)
|
|
(2.7)
|
%
|
(1.3)
|
%
|
|||
Industrial sales(a)
|
|
(2.2)
|
%
|
(3.1)
|
%
|
|||
Wholesale power sales
|
|
(31.5)
|
%
|
(37.7)
|
%
|
|||
Total PEF sales(b)
|
|
(4.4)
|
%
|
(4.8)
|
%
|
|||
Average number of customers
|
|
0.9
|
%
|
0.8
|
%
|
|||
|
|
|
|
|
||||
(a)
|
Major components of PEF's retail sales.
|
|||||||
(b)
|
Consists of all components of PEF's sales, including all billed and unbilled retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers.
|
|||||||
|
|
|
|
|
·
|
A $56 million decrease in fuel and capacity revenues driven primarily by unfavorable weather conditions that impacted wholesale and retail fuel revenues, partially offset by the impact of higher residential fuel rates. Also, PEF had lower capacity revenues resulting from a lower capacity rate and the lower sales volume; and
|
·
|
A $36 million decrease in sales to retail customers primarily due to unfavorable weather conditions. The number of heating degree days for the nine months ended September 30, 2012 was 30% below normal compared to 2% above normal in the same period in 2011. In addition, cooling degree days for the nine months ended September 30, 2012 were 5% above normal compared to 9% above normal in the same period in 2011.
|
·
|
A $21 million increase in sales to wholesale customers primarily due to a new contract with a major customer; and
|
·
|
A $14 million increase in other operating revenues primarily due to higher OATT rates.
|
·
|
A $46 million increase in depreciation and amortization primarily due to a decrease in the reduction of the cost of removal component of amortization expense as allowed under the 2012 and 2010 settlement agreements (See Note 4B) and higher ECRC amortization due to less over-recovery, partially offset by lower nuclear cost-recovery amortization primarily related to the Levy project; and
|
·
|
A $45 million increase in fuel used in electric generation and purchased power primarily due to an increase in deferred fuel expense due to higher under-recovered fuel costs in 2011 as a result of higher system requirements driven by favorable weather and the impact of establishing a regulatory liability for replacement power in accordance with the 2012 settlement agreement (See Note 4B). These increases were partially offset by lower natural gas prices and lower system requirements as a result of unfavorable weather conditions and a lower CR3 indemnification charge for the estimated joint owner replacement power costs.
|
|
Nine months ended September 30
|
|||||||
(in millions)
|
2012
|
2011
|
||||||
Cash flows provided by (used in):
|
|
|
||||||
Operating activities
|
$ | 853 | $ | 888 | ||||
Investing activities
|
(1,049 | ) | (1,094 | ) | ||||
Financing activities
|
195 | 43 | ||||||
Net decrease in cash and cash equivalents
|
(1 | ) | (163 | ) | ||||
Cash and cash equivalents at beginning of period
|
20 | 230 | ||||||
Cash and cash equivalents at end of period
|
$ | 19 | $ | 67 | ||||
|
|
Nine months ended September 30
|
|||||||
(in millions)
|
2012
|
2011
|
||||||
Net income
|
$ | 180 | $ | 437 | ||||
Noncash adjustments to net income
|
759 | 690 | ||||||
Contributions to qualified pension plans
|
(60 | ) | (207 | ) | ||||
Working capital
|
(26 | ) | (32 | ) | ||||
Net cash provided by operating activities
|
$ | 853 | $ | 888 | ||||
|
·
|
A decrease in net income adjusted for noncash and non-operating items in 2012 as compared to 2011.
|
·
|
A $147 million decrease in pension plan funding.
|
|
Nine months ended September 30
|
|||||||
(in millions)
|
2012
|
2011
|
||||||
Capital expenditures
|
$ | (1,098 | ) | $ | (1,010 | ) | ||
Available for sale securities, net
|
(26 | ) | (29 | ) | ||||
Notes due from affiliate
|
- | (59 | ) | |||||
Other investing items
|
75 | 4 | ||||||
Net cash used in investing activities
|
$ | (1,049 | ) | $ | (1,094 | ) | ||
|
·
|
The receipt of a DOE award in the current year of which $62 million was applicable to past capitalized spent fuel storage costs;
|
·
|
Changes in advances with affiliates of $59 million; and
|
·
|
Lower nuclear fuel purchases of $58 million due to prior year purchases made in anticipation of 2012’s three nuclear refueling outages.
|
·
|
An increase in capital expenditures, excluding nuclear fuel, of $146 million primarily due to spending on nuclear and transmission projects, partially offset by decreased spending on generation projects.
|
|
Nine months ended September 30
|
|||||||
(in millions)
|
2012
|
2011
|
||||||
Issuances of long-term debt, net
|
$ | 486 | $ | 495 | ||||
Notes payable and commercial paper
|
24 | - | ||||||
Dividends paid
|
(312 | ) | (452 | ) | ||||
Other financing items
|
(3 | ) | - | |||||
Net cash provided by financing activities
|
$ | 195 | $ | 43 | ||||
|
·
|
A $140 decrease in payments of dividends to the Parent; and
|
·
|
A change in notes payable to affiliates of $212 million.
|
·
|
Commercial paper repayments of $188 million in the current year.
|
Status
|
Primarily Regulates
|
Compliance Strategy
|
|
|
|
|
|
Impacting Solid Waste
|
|||
CCR
|
|||
|
Final rule is not expected
before 2013
|
Storage, use and disposal of coal ash
and flue gas desulfurization materials
|
Proposed rule included two significantly
different options. Compliance method
cannot be determined until the rule is
finalized
|
Status
|
Primarily Regulates
|
Compliance Strategy
|
|
Impacting Air Quality
|
|||
CAIR / CSAPR
|
|||
CAIR in effect pending
resolution of appeal of
CSAPR
|
NOx, SO2
|
Previously installed air pollution controls
and fleet modernization projects, and use of
emission allowances
|
|
MATS
|
|||
|
Compliance due April
2015 with provisions for
one-year extension from
state agencies on case-by-
case basis
|
Mercury and other hazardous metals,
acid gases, hydrogen fluoride,
dioxin/furan from coal- and oil-fired
steam electric generating units
|
Previously installed air pollution controls
and fleet modernization projects largely
address for PEC; for PEF, additional
controls and/or fleet modernization required
|
CAVR – BART provisions
|
|||
|
Final requirements for
PEF BART eligible units
under development
|
NOx, SO2 and particulate matter
|
Assessing BART impact; PEF has obtained
permits addressing CAVR – BART
requirements for NOx, SO2 and particulate
matter
|
NSPS
|
|||
|
Proposed rule issued
March 27, 2012
|
Greenhouse gas
|
Case-by-case determination for new units
|
Impacting Water Quality
|
|||
316(b)
|
|||
|
Final rules are expected by
June 27, 2013
|
Cooling water intake structures for
steam-electric power plants
|
Modification of traveling screens;
assessment of environmental impacts and
alternative technologies for reducing those
impacts; and possible installation of new
technologies
|
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
(a)
|
Exhibits
|
Exhibit Number
|
Description
|
Progress
Energy
|
PEC
|
PEF
|
*3(a)
|
Articles of Incorporation of Progress Energy, Inc. (filed as Exhibit 3.1 to Current Report on Form 8-K dated July 2, 2012, File No. 1-15929).
|
X
|
||
*3(b)
|
Bylaws of Progress Energy, Inc. (filed as Exhibit 3.2 to Current Report on Form 8-K dated July 2, 2012, File No. 1-15929).
|
X
|
||
*10
|
Credit Agreement, dated as of November 18, 2011, among Duke Energy Corporation and certain of its subsidiaries party thereto, as Borrowers, the lenders listed therein and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to Duke Energy Corporation’s Current Report on Form 8-K filed on November 25, 2011, File No. 1-32853).
|
X
|
X
|
|
18
|
Preferability Letter of Deloitte & Touche
|
X
|
||
31(a)
|
302 Certifications of Chief Executive Officer
|
X
|
||
31(b)
|
302 Certifications of Chief Financial Officer
|
X
|
||
31(c)
|
302 Certifications of Chief Executive Officer
|
X
|
||
31(d)
|
302 Certifications of Chief Financial Officer
|
X
|
||
31(e)
|
302 Certifications of Chief Executive Officer
|
X
|
||
31(f)
|
302 Certifications of Chief Financial Officer
|
X
|
||
32(a)
|
906 Certifications of Chief Executive Officer
|
X
|
||
32(b)
|
906 Certifications of Chief Financial Officer
|
X
|
||
32(c)
|
906 Certifications of Chief Executive Officer
|
X
|
||
32(d)
|
906 Certifications of Chief Financial Officer
|
X
|
||
32(e)
|
906 Certifications of Chief Executive Officer
|
X
|
||
32(f)
|
906 Certifications of Chief Financial Officer
|
X
|
||
101.INS
|
XBRL Instance Document**
|
X
|
X
|
X
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
X
|
X
|
X
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
X
|
X
|
X
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
X
|
X
|
X
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
X
|
X
|
X
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document
|
X
|
X
|
X
|
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: November 8, 2012
|
(Registrants)
|
By: /s/ Lynn J. Good
|
|
Lynn J. Good
|
|
Executive Vice President and Chief Financial Officer
|
|
By: /s/ Steven K. Young
|
|
Steven K. Young
|
|
Vice President, Chief Accounting Officer and Controller
|
EB\)*'T.`LRX2KX>G3PF"
MX[X'R;CW`Y1#,8YM4R"AG.+S/!RR/$9BJ=&6*Q.`KY95C5=6C#$8>4_J6*=7
M%X6O6J:%%?C"W_!>;]@5#A]3^+R9)7+?#"]`R&V]?[3]>!ZG@<\5^DG[.G[3
M'P9_:K^'T7Q,^"7BV'Q5X;%_/I&HI):W6F:SH6LVT<4T^DZ[HU_'#>Z;?)!/
M!<(LL9AN+>:.>UFGB8/7H4\10JRY:=6G.5K\L9)NRW=M].I^43HU8*\Z
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Progress Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ James E. Rogers
|
James E. Rogers
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Progress Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ Lynn J. Good
|
Lynn J. Good
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Carolina Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ James E. Rogers
|
James E. Rogers
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Carolina Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ Lynn J. Good
|
Lynn J. Good
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Florida Power Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ James E. Rogers
|
James E. Rogers
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Florida Power Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 8, 2012
|
By: /s/ Lynn J. Good
|
Lynn J. Good
|
|
Chief Financial Officer
|
Merger Agreement (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Jun. 30, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Jul. 02, 2012
|
Dec. 31, 2011
|
Sep. 30, 2012
Other Duke Subsidiaries [Member]
|
Sep. 30, 2012
Other Duke Subsidiaries [Member]
|
Sep. 30, 2012
Other Duke Subsidiaries [Member]
|
Sep. 30, 2012
PEC [Member]
|
Sep. 30, 2011
PEC [Member]
|
Sep. 30, 2012
PEC [Member]
|
Sep. 30, 2011
PEC [Member]
|
Sep. 30, 2012
PEC [Member]
|
Sep. 30, 2012
PEF [Member]
|
Sep. 30, 2011
PEF [Member]
|
Sep. 30, 2012
PEF [Member]
|
Sep. 30, 2011
PEF [Member]
|
Sep. 30, 2012
PEF [Member]
|
|||||||
Discontinued operations attributable to controlling interests | ||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | $ 3 | $ 0 | $ 10 | $ (4) | ||||||||||||||||||||||
Discontinued operations, pre-tax gain from indemnification reversals | 18 | |||||||||||||||||||||||||
Merger Agreement [Line Items] | ||||||||||||||||||||||||||
Merger Share Exchange Ratio, Adjusted | 0.87083 | |||||||||||||||||||||||||
Settlement agreement, fuel savings | 650 | 650 | ||||||||||||||||||||||||
Interim FERC Mitigation Rate Reduction | 65 | |||||||||||||||||||||||||
Community support and charitable contributions | 99 | |||||||||||||||||||||||||
FERC Mitigation | 71 | 71 | ||||||||||||||||||||||||
Severance Charges | 66 | 66 | 42 | 42 | 24 | 24 | ||||||||||||||||||||
Community support, charitable contributions and other | 63 | 54 | 9 | |||||||||||||||||||||||
Total charges recognized | 200 | 167 | 33 | |||||||||||||||||||||||
Cost to achieve the merger, pre-tax | 218 | 14 | 241 | 32 | 180 | 7 | 194 | 17 | 38 | 7 | 47 | 15 | ||||||||||||||
Estimated exit cost liability | 17 | 17 | ||||||||||||||||||||||||
Exit cost liability recognized | 2 | [1] | 5 | 7 | 1 | 1 | 1 | 1 | 4 | 8 | 0 | 2 | 3 | |||||||||||||
Estimated exit cost liability expense allocation | 4 | 9 | 4 | |||||||||||||||||||||||
Exit cost liability | $ 12 | [2] | $ 10 | $ 12 | [2] | $ 5 | ||||||||||||||||||||
|
Benefit Plans - Assets of Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
PEF [Member]
|
|
Assets Of Benefit Plans [Line Items] | |
Plan assets reclassified to investments | $ 39 |
Pension Benefits [Member]
|
|
Assets Of Benefit Plans [Line Items] | |
Employer contributions made directly to pension plan assets | 122 |
Pension Benefits [Member] | PEC [Member]
|
|
Assets Of Benefit Plans [Line Items] | |
Employer contributions made directly to pension plan assets | 60 |
Pension Benefits [Member] | PEF [Member]
|
|
Assets Of Benefit Plans [Line Items] | |
Employer contributions made directly to pension plan assets | $ 61 |
Benefit Plans - Contribution and Benefit Payment Expectations (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Defined Contribution Benefit And Other Postretirement Plans Disclosure [Abstract] | ||||
Defined contribution plan, cost recognized | $ 12 | $ 12 | $ 35 | $ 34 |
PEC [Member]
|
||||
Defined Contribution Benefit And Other Postretirement Plans Disclosure [Abstract] | ||||
Defined contribution plan, cost recognized | 7 | 6 | 18 | 18 |
PEF [Member]
|
||||
Defined Contribution Benefit And Other Postretirement Plans Disclosure [Abstract] | ||||
Defined contribution plan, cost recognized | 4 | 4 | 11 | 11 |
Pension Benefits [Member]
|
||||
Contribution And Benefit Payment [Line Items] | ||||
2012 expected contributions | 146 | 146 | ||
Pension Benefits [Member] | PEC [Member]
|
||||
Contribution And Benefit Payment [Line Items] | ||||
2012 expected contributions | 71 | 71 | ||
Pension Benefits [Member] | PEF [Member]
|
||||
Contribution And Benefit Payment [Line Items] | ||||
2012 expected contributions | $ 74 | $ 74 |
Debt and Credit Facilities - Debt and Credit Facilities (Details) (USD $)
|
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
|
Long-term debt [Line Items] | ||
Current maturities of long-term debt | $ 838,000,000 | $ 961,000,000 |
Duke Energy [Member]
|
||
RCAs and available capacity [Line Items] | ||
Available capacity | 4,000,000,000 | |
Line of credit facility, conditional capacity | 2,000,000,000 | |
MCF expiring November 2017 [Member] | Duke Energy [Member]
|
||
RCAs and available capacity [Line Items] | ||
Facility size | 5,630,000,000 | |
Parent [Member]
|
||
Long-term debt [Line Items] | ||
Current maturities of long-term debt | 0 | 450,000,000 |
RCAs and available capacity [Line Items] | ||
RCA termination date | July 2, 2012 | |
Available capacity | 478,000,000 | |
Parent [Member] | Senior Notes Due April 15, 2012
|
||
Long-term debt [Line Items] | ||
Maturity date | Apr. 15, 2012 | |
Maturities of debt | 450,000,000 | |
Debt instrument, interest rate stated percentage | 6.85% | |
Parent [Member] | Senior Notes Due April 1, 2022
|
||
Long-term debt [Line Items] | ||
Debt instrument, face amount | 450,000,000 | |
Maturity date | Apr. 01, 2022 | |
Debt instrument issuance date | March 8, 2012 | |
Debt instrument, interest rate stated percentage | 3.15% | |
PEC [Member]
|
||
Long-term debt [Line Items] | ||
Current maturities of long-term debt | 403,000,000 | 502,000,000 |
RCAs and available capacity [Line Items] | ||
Available capacity | 600,000,000 | |
Facility size | 750,000,000 | |
Line of credit facility, conditional capacity | 1,000,000,000 | |
PEC [Member] | Notes Due July 15, 2012 [Member]
|
||
Long-term debt [Line Items] | ||
Maturity date | Jul. 15, 2012 | |
Maturities of debt | 500,000,000 | |
Debt instrument, interest rate stated percentage | 6.50% | |
PEC [Member] | First Mortgage Bonds [Member]
|
||
Long-term debt [Line Items] | ||
Maturity date | Sep. 15, 2013 | |
Debt instrument, interest rate stated percentage | 5.125% | |
Current maturities of long-term debt | 400,000,000 | |
PEC [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds Due May 15, 2022
|
||
Long-term debt [Line Items] | ||
Debt instrument, face amount | 500,000,000 | |
Maturity date | May 15, 2022 | |
Debt instrument issuance date | May 18, 2012 | |
Debt instrument, interest rate stated percentage | 2.80% | |
PEC [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds Due May 15, 2042 [Member]
|
||
Long-term debt [Line Items] | ||
Debt instrument, face amount | 500,000,000 | |
Maturity date | May 15, 2042 | |
Debt instrument issuance date | May 18, 2012 | |
Debt instrument, interest rate stated percentage | 4.10% | |
PEF [Member]
|
||
Long-term debt [Line Items] | ||
Current maturities of long-term debt | 435,000,000 | 10,000,000 |
RCAs and available capacity [Line Items] | ||
Available capacity | 600,000,000 | |
Facility size | 750,000,000 | |
Line of credit facility, conditional capacity | 1,000,000,000 | |
PEF [Member] | First Mortgage Bonds [Member]
|
||
Long-term debt [Line Items] | ||
Maturity date | Mar. 01, 2013 | |
Debt instrument, interest rate stated percentage | 4.80% | |
Current maturities of long-term debt | $ 425,000,000 |
Variable Interest Entities (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest entity consolidated |
|
||||||||||||||||||||||||||||||||||||||||||||||||
PEC [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest entity consolidated |
|
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Reconciliations of effective income tax rate to the statutory federal income tax rate | ||||
Effective income tax rate | 32.80% | 37.80% | 34.70% | 36.90% |
Excise Taxes [Abstract] | ||||
Excise taxes | $ 95 | $ 96 | $ 241 | $ 245 |
PEC [Member]
|
||||
Reconciliations of effective income tax rate to the statutory federal income tax rate | ||||
Effective income tax rate | 31.90% | 33.40% | 31.60% | 34.20% |
Excise Taxes [Abstract] | ||||
Excise taxes | 33 | 33 | 85 | 86 |
PEF [Member]
|
||||
Reconciliations of effective income tax rate to the statutory federal income tax rate | ||||
Effective income tax rate | 35.90% | 37.00% | 36.90% | 37.00% |
Excise Taxes [Abstract] | ||||
Excise taxes | $ 62 | $ 63 | $ 156 | $ 159 |
Organization and Summary of Significant Accounting Policies (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||
Disclosure Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Unbilled Revenues [Text Block] |
|
||||||||||||||||||||||||||||||||||||||||
PEC [Member]
|
|||||||||||||||||||||||||||||||||||||||||
Disclosure Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Unbilled Revenues [Text Block] |
|
||||||||||||||||||||||||||||||||||||||||
PEF [Member]
|
|||||||||||||||||||||||||||||||||||||||||
Disclosure Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Unbilled Revenues [Text Block] |
|
Investments (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | $ 1,904 | $ 1,904 | $ 1,650 | ||
Unrealized Losses | 23 | 23 | 31 | ||
Unrealized Gains | 573 | 573 | 444 | ||
Fair Value Of Available For Sale Debt Securities By Contractual Maturity [Abstract] | |||||
Due in one year or less | 13 | 13 | |||
Due after one through five years | 125 | 125 | |||
Due after five through 10 years | 136 | 136 | |||
Due after 10 years | 301 | 301 | |||
Total | 575 | 575 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 121 | 121 | |||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 14 | 14 | |||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 9 | 9 | |||
Sales Of Available For Sale Securities [Abstract] | |||||
Proceeds | 274 | 1,062 | 794 | 4,254 | |
Realized gains | 8 | 9 | 23 | 24 | |
Realized losses | 6 | 11 | 12 | 20 | |
PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 1,229 | 1,229 | 1,107 | ||
Unrealized Losses | 15 | 15 | 20 | ||
Unrealized Gains | 368 | 368 | 287 | ||
Fair Value Of Available For Sale Debt Securities By Contractual Maturity [Abstract] | |||||
Due in one year or less | 11 | 11 | |||
Due after one through five years | 102 | 102 | |||
Due after five through 10 years | 72 | 72 | |||
Due after 10 years | 194 | 194 | |||
Total | 379 | 379 | |||
Sales Of Available For Sale Securities [Abstract] | |||||
Proceeds | 101 | 136 | 351 | 386 | |
Realized gains | 4 | 4 | 14 | 10 | |
Realized losses | 2 | 4 | 5 | 9 | |
PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 662 | 662 | 530 | ||
Unrealized Losses | 8 | 8 | 11 | ||
Unrealized Gains | 205 | 205 | 157 | ||
Fair Value Of Available For Sale Debt Securities By Contractual Maturity [Abstract] | |||||
Due in one year or less | 2 | 2 | |||
Due after one through five years | 18 | 18 | |||
Due after five through 10 years | 55 | 55 | |||
Due after 10 years | 82 | 82 | |||
Total | 157 | 157 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 47 | 47 | |||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 4 | 4 | |||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 4 | 4 | |||
Sales Of Available For Sale Securities [Abstract] | |||||
Proceeds | 173 | 926 | 443 | 3,861 | |
Realized gains | 4 | 5 | 9 | 14 | |
Realized losses | 4 | 7 | 7 | 11 | |
Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 1,844 | 1,844 | 1,630 | ||
Unrealized Losses | 23 | 23 | 31 | ||
Unrealized Gains | 573 | 573 | 444 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 117 | 117 | 136 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 14 | 14 | 12 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 9 | 9 | 19 | ||
Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 1,223 | 1,223 | 1,101 | ||
Unrealized Losses | 15 | 15 | 20 | ||
Unrealized Gains | 368 | 368 | 287 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 74 | 74 | 98 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 10 | 10 | 10 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 5 | 5 | 10 | ||
Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 621 | 621 | 529 | ||
Unrealized Losses | 8 | 8 | 11 | ||
Unrealized Gains | 205 | 205 | 157 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 43 | 43 | 38 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 4 | 4 | 2 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 4 | 4 | 9 | ||
Equity Securities [Member] | Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 1,226 | 1,226 | 1,062 | ||
Unrealized Losses | 21 | 21 | 29 | ||
Unrealized Gains | 534 | 534 | 412 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 89 | 89 | 112 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 13 | 13 | 10 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 8 | 8 | 19 | ||
Equity Securities [Member] | Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 797 | 797 | 690 | ||
Unrealized Losses | 15 | 15 | 20 | ||
Unrealized Gains | 340 | 340 | 262 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 56 | 56 | 69 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 10 | 10 | 10 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 5 | 5 | 10 | ||
Equity Securities [Member] | Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 429 | 429 | 372 | ||
Unrealized Losses | 6 | 6 | 9 | ||
Unrealized Gains | 194 | 194 | 150 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 33 | 33 | 43 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 3 | 3 | |||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 3 | 3 | 9 | ||
Corporate Debt Securities [Member] | Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 85 | 85 | 86 | ||
Unrealized Gains | 9 | 9 | 6 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 3 | 3 | 20 | ||
Corporate Debt Securities [Member] | Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 75 | 75 | 69 | ||
Unrealized Gains | 8 | 8 | 5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 2 | 2 | 10 | ||
Corporate Debt Securities [Member] | Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 10 | 10 | 17 | ||
Unrealized Gains | 1 | 1 | 1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 10 | ||||
Municipal Bonds [Member] | Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 134 | 134 | 127 | ||
Unrealized Losses | 1 | 1 | 2 | ||
Unrealized Gains | 10 | 10 | 7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 14 | 14 | 21 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 1 | 1 | 2 | ||
Municipal Bonds [Member] | Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 61 | 61 | 55 | ||
Unrealized Gains | 4 | 4 | 3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 5 | 5 | 8 | ||
Municipal Bonds [Member] | Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 73 | 73 | 72 | ||
Unrealized Losses | 1 | 1 | 2 | ||
Unrealized Gains | 6 | 6 | 4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 9 | 9 | 13 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 1 | 1 | 2 | ||
Municipal Bonds [Member] | Other Classification [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 39 | 39 | |||
Municipal Bonds [Member] | Other Classification [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 39 | 39 | |||
U.S. Government Bonds [Member] | Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 295 | 295 | 268 | ||
Unrealized Gains | 17 | 17 | 18 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 10 | 10 | (23) | ||
U.S. Government Bonds [Member] | Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 230 | 230 | 225 | ||
Unrealized Gains | 15 | 15 | 16 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 11 | 11 | 9 | ||
U.S. Government Bonds [Member] | Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 65 | 65 | 43 | ||
Unrealized Gains | 2 | 2 | 2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | (32) | ||||
Other [Member] | Ndtf [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 104 | 104 | 87 | ||
Unrealized Losses | 1 | 1 | |||
Unrealized Gains | 3 | 3 | 1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 1 | 1 | 6 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 1 | 1 | |||
Other [Member] | Ndtf [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 60 | 60 | 62 | ||
Unrealized Gains | 1 | 1 | 1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 2 | ||||
Other [Member] | Ndtf [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 44 | 44 | 25 | ||
Unrealized Losses | 1 | 1 | |||
Unrealized Gains | 2 | 2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 1 | 1 | 4 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, aggregate losses | 1 | 1 | |||
Other [Member] | Other Classification [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 21 | 21 | 20 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | 4 | 4 | |||
Other [Member] | Other Classification [Member] | PEC [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 6 | 6 | 6 | ||
Other [Member] | Other Classification [Member] | PEF [Member]
|
|||||
Schedule Of Available For Sale Securities [Abstract] | |||||
Fair Value | 2 | 2 | 1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 4 | $ 4 |
Environmental Matters (Details) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Beginning Balance | $ 23 | $ 35 | ||||||
Amount accrued for environmental loss contingencies | 16 | 7 | ||||||
Expenditures for environmental loss contingencies | (7) | (17) | ||||||
Ending Balance | 32 | [1] | 25 | [1] | ||||
Maximum [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Cost of new control equipment estimate | 320 | |||||||
Minimum [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Cost of new control equipment estimate | 150 | |||||||
PEC [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Beginning Balance | 11 | 12 | ||||||
Amount accrued for environmental loss contingencies | 4 | 0 | ||||||
Expenditures for environmental loss contingencies | (2) | (1) | ||||||
Ending Balance | 13 | [2] | 11 | [2] | ||||
PEC [Member] | MGP Site [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Amount accrued for environmental loss contingencies | 7 | |||||||
PEC [Member] | MGP Site [Member] | Maximum [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Site contingency, loss exposure in excess of accrual, high estimate | 25 | |||||||
PEF [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Beginning Balance | 12 | 23 | ||||||
Amount accrued for environmental loss contingencies | 12 | 7 | ||||||
Expenditures for environmental loss contingencies | (5) | (16) | ||||||
Ending Balance | 19 | [1] | 14 | [1] | ||||
Cost of new control equipment estimate | 1,000 | |||||||
PEF [Member] | Orlando MGP OU1 [Member]
|
||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||
Amount accrued for environmental loss contingencies | 9 | |||||||
Site contingency, loss exposure in excess of accrual, high estimate | $ 8 | |||||||
|
Related Party Transactions (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
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Related party transactions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions |
|
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PEC [Member]
|
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Related party transactions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions |
|
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PEF [Member]
|
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Related party transactions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions |
|
Benefit Plans - Costs of Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||
Pension Benefits [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | $ 16 | $ 13 | $ 47 | $ 39 | ||||||
Interest cost on projected benefit obligation | 32 | 33 | 95 | 98 | ||||||
Expected return on plan assets | (48) | (45) | (141) | (136) | ||||||
Amortization of prior service cost (credit) | 2 | [1] | 2 | [1] | 7 | [1] | 5 | [1] | ||
Amortization of net transition liability | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Amortization of actuarial loss | 24 | [1] | 15 | [1] | 69 | [1] | 47 | [1] | ||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Other | 1 | 0 | 1 | 0 | ||||||
Net periodic cost | 27 | 18 | 78 | 53 | ||||||
Defined benefit plan, weighted average assumptions used in calculating net periodic benefit cost | ||||||||||
Discount rate | 4.60% | |||||||||
Rate of increase in future compensation | ||||||||||
Bargaining | 4.00% | |||||||||
Expected long-term rate of return on plan assets | 8.00% | |||||||||
Pension Benefits [Member] | PEC [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 6 | 5 | 19 | 15 | ||||||
Interest cost on projected benefit obligation | 15 | 15 | 43 | 46 | ||||||
Expected return on plan assets | (25) | (23) | (72) | (68) | ||||||
Amortization of prior service cost (credit) | 2 | 1 | 6 | 4 | ||||||
Amortization of net transition liability | 0 | 0 | 0 | 0 | ||||||
Amortization of actuarial loss | 9 | 7 | 28 | 19 | ||||||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Other | 1 | 0 | 1 | 0 | ||||||
Net periodic cost | 8 | 5 | 25 | 16 | ||||||
Pension Benefits [Member] | PEF [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 8 | 6 | 22 | 18 | ||||||
Interest cost on projected benefit obligation | 14 | 14 | 42 | 43 | ||||||
Expected return on plan assets | (21) | (19) | (61) | (59) | ||||||
Amortization of net transition liability | 0 | 0 | 0 | 0 | ||||||
Amortization of actuarial loss | 13 | 8 | 36 | 25 | ||||||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 14 | 9 | 39 | 27 | ||||||
Nonqualified Pension Plans [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 0 | 0 | 1 | 1 | ||||||
Interest cost on projected benefit obligation | 2 | 2 | 6 | 7 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization of prior service cost (credit) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Amortization of net transition liability | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Amortization of actuarial loss | 1 | [1] | 1 | [1] | 3 | [1] | 2 | [1] | ||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Other | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 3 | 3 | 10 | 10 | ||||||
Defined benefit plan, weighted average assumptions used in calculating net periodic benefit cost | ||||||||||
Discount rate | 4.60% | |||||||||
Rate of increase in future compensation | ||||||||||
Supplementary plans | 5.25% | |||||||||
Nonqualified Pension Plans [Member] | PEC [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 0 | 0 | 1 | 1 | ||||||
Interest cost on projected benefit obligation | 1 | 1 | 1 | 1 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 | ||||||
Amortization of net transition liability | 0 | 0 | 0 | 0 | ||||||
Amortization of actuarial loss | 0 | 0 | 1 | 0 | ||||||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Other | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 1 | 1 | 3 | 2 | ||||||
Nonqualified Pension Plans [Member] | PEF [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 0 | 0 | 0 | 0 | ||||||
Interest cost on projected benefit obligation | 1 | 1 | 2 | 2 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization of net transition liability | 0 | 0 | 0 | 0 | ||||||
Amortization of actuarial loss | 0 | 0 | 0 | 0 | ||||||
Special termination costs | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 1 | 1 | 2 | 2 | ||||||
Other Postretirement Benefits [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 5 | 3 | 12 | 8 | ||||||
Interest cost on projected benefit obligation | 11 | 10 | 32 | 30 | ||||||
Expected return on plan assets | 0 | 0 | (1) | (1) | ||||||
Amortization of prior service cost (credit) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Amortization of net transition liability | 1 | [1] | 1 | [1] | 3 | [1] | 4 | [1] | ||
Amortization of actuarial loss | 10 | [1] | 3 | [1] | 25 | [1] | 9 | [1] | ||
Special termination costs | 5 | 0 | 5 | 0 | ||||||
Other | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 32 | 17 | 76 | 50 | ||||||
Defined benefit plan, weighted average assumptions used in calculating net periodic benefit cost | ||||||||||
Discount rate | 4.60% | |||||||||
Other Postretirement Benefits [Member] | PEC [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 2 | 2 | 6 | 3 | ||||||
Interest cost on projected benefit obligation | 6 | 5 | 17 | 15 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 | ||||||
Amortization of net transition liability | 0 | 0 | 0 | 1 | ||||||
Amortization of actuarial loss | 6 | 1 | 14 | 4 | ||||||
Special termination costs | 2 | 0 | 2 | 0 | ||||||
Other | 0 | 0 | 0 | 0 | ||||||
Net periodic cost | 16 | 8 | 39 | 23 | ||||||
Other Postretirement Benefits [Member] | PEF [Member]
|
||||||||||
Defined benefit plan disclosure | ||||||||||
Service cost | 2 | 1 | 5 | 3 | ||||||
Interest cost on projected benefit obligation | 4 | 4 | 13 | 13 | ||||||
Expected return on plan assets | 0 | 0 | (1) | (1) | ||||||
Amortization of net transition liability | 1 | 1 | 2 | 3 | ||||||
Amortization of actuarial loss | 3 | 2 | 9 | 6 | ||||||
Special termination costs | 1 | 0 | 1 | 0 | ||||||
Net periodic cost | $ 11 | $ 8 | $ 29 | $ 24 | ||||||
|
Debt and Credit Facilities - Covenants and Default Provisions (Details)
|
Sep. 30, 2012
|
---|---|
PEC [Member]
|
|
Collateralized obligations | |
Ratio of indebtedness to net capital | 0.65 |
PEF [Member]
|
|
Collateralized obligations | |
Ratio of indebtedness to net capital | 0.65 |
Financial Information by Business Segment
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Financial Information By Business Segment Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information by Business Segment | 3. FINANCIAL INFORMATION BY BUSINESS SEGMENT PROGRESS ENERGY Effective with the consummation of the merger with Duke Energy on July 2, 2012, our reportable segments changed based on the financial information the chief decision maker evaluates for the allocation of resources and assessing performance. Our sole reportable segment is now Franchised Electric, which is primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. 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 segment, Other now presents the remainder of our operations, including the Parent and PESC and other miscellaneous nonregulated businesses, as well as costs to achieve the merger with Duke Energy. Also effective with the consummation of the merger, management began evaluating segment performance based on Segment Income. Segment Income is defined as income from continuing operations net of income attributable to noncontrolling interests. Prior periods' segment information has been recast to conform to the current year presentation. None of these segment changes impact the Progress Energy Registrants' reported consolidated revenues or net income. Products and services are sold between the affiliate companies of Duke Energy at cost.
PEC and PEF PEC and PEF each have one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity in portions of North Carolina and South Carolina and in portions of Florida, respectively. The remainder of PEC's and PEF's operations are classified as Other. While not considered reportable segments for either company, PEC's and PEF's Other consists of each respective company's costs to achieve the merger with Duke Energy. PEC's Other had a net loss of $109 million and $5 million for the three months ended September 30, 2012 and 2011, respectively, and $119 million and $14 million for the nine months ended September 30, 2012 and 2011, respectively. PEF's Other had a net loss of $23 million and $4 million for the three months ended September 30, 2012 and 2011, respectively, and $30 million and $13 million for the nine months ended September 30, 2012 and 2011, respectively. The Franchised Electric operating segments own substantially all of PEC's and PEF's assets at September 30, 2012 and December 31, 2011. |