Certain investments in debt and equity securities that have readily determinable market values are accounted for as available-for-sale securities, which are reported at fair value in the Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability.

Our available-for-sale securities are primarily comprised of investments held in PEC's and PEF's NDTs, pursuant to NRC requirements, to fund certain costs of decommissioning the Utilities' nuclear plants as discussed in Note 5C of the 2011 Form 10-K, as well as investments in a grantor trust at PEF related to other post-retirement benefit plans. Progress Energy classifies its investments in debt and equity securities held within the PEC and PEF NDTs and the PEF grantor trust as long-term.

The investments within the PEC and PEF NDTs and the PEF grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, we and the Utilities have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside our and the Utilities' control. Accordingly, all unrealized gains and losses associated with equity securities within the PEC and PEF NDTs and the PEF grantor trust are considered other-than-temporary and are recognized immediately when the fair value of individual investments is less than the cost basis of the investment. Pursuant to regulatory accounting, substantially all realized and unrealized gains and losses associated with investments in debt and equity securities within the PEC and PEF NDTs and the PEF grantor trust are deferred as a regulatory asset or liability. As a result, there is no immediate impact on our or the Utilities' earnings. Therefore, the following tables include the unrealized gains and losses for the NDT and the PEF grantor trust funds based on the original cost of the trust investments.

The following tables summarize Progress Energy's, PEC's and PEF's available-for-sale securities at September 30, 2012 and December 31, 2011:

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

The table below summarizes the maturity date for available-for-sale debt securities held by Progress Energy, PEC and PEF at September 30, 2012:

(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

The following tables present selected information about Progress Energy's, PEC's and PEF's sales of available-for-sale securities during the three and nine months ended September 30, 2012 and 2011. Realized gains and losses were determined on a specific identification basis.

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

The fair values and gross unrealized losses of available-for-sale debt and equity securities, which are in an unrealized loss position for which other-than-temporary investment losses have not been recorded in earnings, summarized by investment type and length of time that the securities have been in continuous loss position, are presented in the tables below for Progress Energy, PEC and PEF at September 30, 2012 and December 31, 2011:

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		-		-
	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

Unrealized losses on investments within the PEC and PEF NDTs and the PEF grantor trust are deferred as regulatory assets pursuant to regulatory accounting treatment.