All of Duke Energy's and Progress Energy's preferred stock was issued by Progress Energy Carolinas and Progress Energy Florida to third-party holders prior to the July 2, 2012 merger with Progress Energy. The preferred stock contains certain provisions that could require redemption of the preferred stock for cash. In the event dividends payable on Progress Energy Carolinas' or Progress Energy Florida's preferred stock are in default for an amount equivalent to or exceeding four quarterly dividend payments, the holders of the preferred stock are entitled to elect a majority of Progress Energy Carolinas' or Progress Energy Florida's respective board of directors until all accrued and unpaid dividends are paid. All classes of preferred stock are entitled to cumulative dividends with preference to the common stock dividends, are redeemable by vote of the Progress Energy Carolinas' or Progress Energy Florida's respective board of directors at any time, and do not have any preemptive rights. All classes of preferred stock have a liquidation preference equal to $100 per share plus any accumulated unpaid dividends except for Progress Energy Florida's 4.75%, $100 par value class, which does not have a liquidation preference. Each holder of Progress Energy Carolinas' preferred stock is entitled to one vote. The holders of Progress Energy Florida's preferred stock have no right to vote except for certain circumstances involving dividends payable on preferred stock that are in default or certain matters affecting the rights and preferences of the preferred stock.

On February 6, 2013, notices of redemption for all series of Progress Energy Carolinas' and Progress Energy Florida's outstanding preferred stock and serial preferred stock were sent to shareholders. The preferred stock and serial preferred stock will be redeemed on March 8, 2013, at the redemption prices listed below plus accrued dividends using available cash on hand and short-term borrowings. Funds sufficient to pay the redemption price for each series have been deployed with a bank, acting as paying agent, with irrevocable instructions to pay the holders at the respective redemption prices, and, as a result, under North Carolina law and the Charter of Progress Energy Carolinas, the holders of the preferred stock have ceased to be stockholders.

The following table shows preferred stock outstanding at December 31, 2012 and 2011.

(in millions, except share and per share data)		Shares Authorized	Shares Outstanding	Redemption Price			Total
Progress Energy Carolinas
Cumulative, no par value $5 Preferred Stock		300,000	236,997	$	110.00	$	24
Cumulative, no par value Serial Preferred Stock		20,000,000
	$4.20 Serial Preferred		100,000		102.00		10
	$5.44 Serial Preferred		249,850		101.00		25
Cumulative, no par value Preferred Stock A		5,000,000	-		-		-
No par value Preference Stock		10,000,000	-		-		-
	Total Progress Energy Carolinas						59
Progress Energy Florida
Cumulative, $100 par value Preferred Stock		4,000,000
	4.00% Preferred		39,980		104.25		4
	4.40% Preferred		75,000		102.00		8
	4.58% Preferred		99,990		101.00		10
	4.60% Preferred		39,997		103.25		4
	4.75% Preferred		80,000		102.00		8
Cumulative, no par value Preferred Stock		5,000,000	-		-		-
$100 par value Preference Stock		1,000,000	-		-		-
	Total Progress Energy Florida						34
	Total preferred stock of subsidiaries					$	93