Organization and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]

Organization and Summary of Significant Accounting Policies

1.       ORGANIZATION ANDBASIS OF PRESENTATION

A.       ORGANIZATION

In this report, Progress Energy, which includes Progress Energy, Inc. holding company (the Parent) and its regulated and nonregulated subsidiaries on a consolidated basis, is at times referred to as “we,” “us” or “our.” When discussing Progress Energy's financial information, it necessarily includes the results of Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. (PEC) and Florida Power Corporation d/b/a Progress Energy Florida, Inc. (PEF) (collectively, the Utilities). The term “Progress Energy Registrants” refers collectively to the three separate registrants: Progress Energy, PEC and PEF. The information in these combined notes relates to each of the Progress Energy Registrants as noted in the Index to Applicable Combined Notes to Unaudited Condensed Interim Financial Statements by Registrant. However, neither of the Utilities makes any representation as to information related solely to Progress Energy or the subsidiaries of Progress Energy other than itself.

PROGRESSENERGY

The Parent is a holding company headquartered in Raleigh, N.C., subject to regulation by the Federal Energy Regulatory Commission (FERC).On July 2, 2012, Progress Energy, Inc. consummated the merger with Duke Energy Corporation (Duke Energy), and became, and will continue as, a direct wholly owned subsidiary of Duke Energy.The total consideration transferred in the merger, based on the closing price of Duke Energy common shares on July 2, 2012, was $18 billion. The merger was recorded using the acquisition method of accounting, whereby the acquiree normally reflects the impact of the adjustments of assets and liabilities to fair value and the resultant goodwill on their financial statements. However, in accordance with SEC guidance, the Progress Energy Registrants did not reflect these adjustments based on the significance of the Progress Energy Registrants' outstanding public debt securities. See Note 2 for additional information regarding the merger.

Subsequent to the merger, our sole reportable segment is Franchised Electric, which is primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. The remainder of our operations, including the Parent and Progress Energy Service Company (PESC) and other miscellaneous nonregulated businesses are presented as Other. See Note 3 for further information about our segments.

PEC

PEC is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. PEC's subsidiaries are involved in insignificant nonregulated business activities. PEC is subject to the regulatory jurisdiction of the North Carolina Utilities Commission (NCUC), the Public Service Commission of South Carolina (PSCSC), the United States Nuclear Regulatory Commission (NRC) and the FERC. As discussed further in Note 3, PEC's operations include one reportable segment, Franchised Electric.

PEF

PEF is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in west central Florida. PEF is subject to the regulatory jurisdiction of the Florida Public Service Commission (FPSC), the NRC and the FERC. As discussed further in Note 3, PEF's operations include one reportable segment, Franchised Electric.

B.       BASIS OF PRESENTATION

These Unaudited Condensed Interim Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the U.S. for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Unaudited Condensed Interim Financial Statements do not include all of the information and notes required by GAAP in the U.S. for annual financial statements. The December 31, 2011 condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. Because the Unaudited Condensed Interim Financial Statementsand Notes do not include all of the information and notes required by GAAP in the U.S. for annual financial statements, the Unaudited Condensed Interim Financial Statementsand other information included in this quarterly report should be read in conjunction with the respective Financial Statementsand Notes in the Progress Energy Registrants' combined Form 10-K for the year ended December 31, 2011 (2011 Form 10-K).

These Unaudited Condensed Interim Financial Statementsreflect all normal recurring adjustments that are, in the opinion of the respective companies' management, necessary to fairly present the financial position and results of operations of each Progress Energy Registrant. Amounts reported in the Progress Energy Registrants' Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors.

The Unaudited Condensed Interim Financial Statements and Notes have been reclassified to conform with the Duke Energy format.

C.       USE OF ESTIMATES

To conform to GAAP in the U.S., management makes estimates and assumptions that affect the amounts reported in the Unaudited Condensed Interim Financial Statementsand Notes. Although these estimates are based on management's best available information at the time, actual results could differ.

D.       UNBILLED REVENUE

Revenues on sales of electricity are recognized when the service is provided to customers. Unbilled retail revenues are estimated by applying a weighted average revenue per kilowatt-hour for all customer classes to the number of estimated kilowatt-hours delivered but not billed. The amount of unbilled revenues can vary significantly from period to period as a result of numerous factors, including seasonality, weather, customer usage patterns and customer mix.

Progress Energy, PEC and PEF had unbilled revenues within Receivables in their respective Balance Sheets as follows:

(in millions)	September 30, 2012		December 31, 2011
Progress Energy	$	190		$	157
PEC	$	99		$	102
PEF	$	91		$	55