Progress Energy (PREX) 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS of INCO

CONSOLIDATED STATEMENTS of INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating revenues	$9,885	$9,167	$9,153
Operating expenses
Fuel used in electric generation	3,752	3,021	3,145
Purchased power	911	1,299	1,184
Operation and maintenance	1,894	1,820	1,842
Depreciation, amortization and accretion	986	839	905
Taxes other than on income	557	508	501
Other	13	(3)	30
Total operating expenses	8,113	7,484	7,607
Operating income	1,772	1,683	1,546
Other income (expense)
Interest income	14	24	34
Allowance for equity funds used during construction	124	122	51
Other, net	6	(17)	(7)
Total other income, net	144	129	78
Interest charges
Interest charges	718	679	605
Allowance for borrowed funds used during construction	(39)	(40)	(17)
Total interest charges, net	679	639	588
Income from continuing operations before income tax	1,237	1,173	1,036
Income tax expense	397	395	334
Income from continuing operations	840	778	702
Discontinued operations, net of tax	(79)	58	(206)
Net income	761	836	496
Net (income) loss attributable to noncontrolling interests, net of tax	(4)	(6)	8
Net income attributable to controlling interests	757	830	504
Average common shares outstanding - basic	279	262	257
Earnings Per Share Basic, [Abstract]
Income from continuing operations attributable to controlling interests, net of tax	2.99	2.95	2.7
Discontinued operations attributable to controlling interests, net of tax	-0.28	0.22	-0.74
Net income attributable to controlling interests	2.71	3.17	1.96
Earnings Per Share, Diluted [Abstract]
Income from continuing operations attributable to controlling interests, net of tax	2.99	2.95	2.7
Discontinued operations attributable to controlling interests, net of tax	-0.28	0.22	-0.74
Net income attributable to controlling interests	2.71	3.17	1.96
Dividends per share	2.48	2.465	2.445
Amounts attributable to controlling interests
Income from continuing operations attributable to controlling interests, net of tax	836	773	693
Discontinued operations attributable to controlling interests, net of tax	(79)	57	(189)
Net income attributable to controlling interests	$757	$830	$504

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Utility plant
Utility plant in service	$28,918	$26,326
Accumulated depreciation	(11,576)	(11,298)
Utility plant in service, net	17,342	15,028
Held for future use	47	38
Construction work in progress	1,790	2,745
Nuclear fuel, net of amortization	554	482
Total utility plant, net	19,733	18,293
Current assets
Cash and cash equivalents	725	180
Receivables, net	800	867
Inventory	1,325	1,239
Regulatory assets	142	533
Derivative collateral posted	146	353
Income taxes receivable	145	194
Prepayments and other current assets	248	154
Total current assets	3,531	3,520
Deferred debits and other assets
Regulatory assets	2,179	2,567
Nuclear decommissioning trust funds	1,367	1,089
Miscellaneous other property and investments	438	446
Goodwill	3,655	3,655
Other assets and deferred debits	333	303
Total deferred debits and other assets	7,972	8,060
Total assets	31,236	29,873
Common stock equity
Common stock without par value, 500 million shares authorized, 281 million and 264 million shares issued and outstanding, respectively	6,873	6,206
Unearned ESOP shares (1 million shares)	(12)	(25)
Accumulated other comprehensive loss	(87)	(116)
Retained earnings	2,675	2,622
Total common stock equity	9,449	8,687
Noncontrolling interests	6	6
Total equity	9,455	8,693
Preferred stock of subsidiaries	93	93
Long-term debt, affiliate	272	272
Long-term debt, net	11,779	10,387
Total capitalization	21,599	19,445
Current liabilities
Current portion of long-term debt	406	0
Short-term debt	140	1,050
Accounts payable	835	912
Interest accrued	206	167
Dividends declared	175	164
Customer deposits	300	282
Derivative liabilities	190	493
Accrued compensation and other benefits	167	193
Other current liabilities	239	225
Total current liabilities	2,658	3,486
Deferred credits and other liabilities
Noncurrent income tax liabilities	1,196	818
Accumulated deferred investment tax credits	117	127
Regulatory liabilities	2,510	2,181
Asset retirement obligations	1,170	1,471
Accrued pension and other benefits	1,339	1,594
Capital lease obligations	221	231
Derivative liabilities	240	269
Other liabilities and deferred credits	186	251
Total deferred credits and other liabilities	6,979	6,942
Commitments and contingencies (Notes 21 and 22)
Total capitalization and liabilities	$31,236	$29,873

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
Share data in Millions	Dec. 31, 2009	Dec. 31, 2008
Common stock equity
Common stock shares authorized	500	500
Common stock shares issued	281	264
Common stock shares outstanding	281	264
Unearned ESOP shares	1	1

CONSOLIDATED STATEMENTS of CASH

CONSOLIDATED STATEMENTS of CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities
Net income	$761	$836	$496
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, amortization and accretion	1,135	957	1,026
Deferred income taxes and investment tax credits, net	220	411	177
Deferred fuel cost (credit)	290	(333)	117
Deferred income	0	0	(128)
Allowance for equity funds used during construction	(124)	(122)	(51)
Loss (gain) on sales of assets	2	(75)	(29)
Other adjustments to net income	269	135	212
Cash provided (used) by changes in operating assets and liabilities
Receivables	26	233	(186)
Inventory	(99)	(237)	(11)
Derivative collateral posted	200	(340)	55
Prepayments and other current assets	3	7	35
Income taxes, net	(14)	(169)	(275)
Accounts payable	(26)	77	(40)
Other current liabilities	(42)	(103)	81
Other assets and deferred debits	11	(44)	(198)
Accrued pension and other benefits	(285)	(39)	(91)
Other liabilities and deferred credits	(56)	24	62
Net cash provided by operating activities	2,271	1,218	1,252
Investing activities
Gross property additions	(2,295)	(2,333)	(1,973)
Nuclear fuel additions	(200)	(222)	(228)
Proceeds from sales of discontinued operations and other assets, net of cash divested	1	72	675
Purchases of available-for-sale securities and other investments	(2,350)	(1,590)	(1,413)
Proceeds from available-for-sale securities and other investments	2,314	1,534	1,452
Other investing activities	(2)	(2)	30
Net cash used by investing activities	(2,532)	(2,541)	(1,457)
Financing activities
Issuance of common stock	623	132	151
Dividends paid on common stock	(693)	(642)	(627)
Payments of short-term debt with original maturities greater than 90 days	(29)	(176)	0
Proceeds from issuance of short-term debt with original maturities greater than 90 days	0	29	176
Net (decrease) increase in short-term debt	(981)	1,096	25
Proceeds from issuance of long-term debt, net	2,278	1,797	739
Retirement of long-term debt	(400)	(877)	(324)
Cash distributions to noncontrolling interests	(6)	(85)	(10)
Other financing activities	14	(26)	65
Net cash provided by financing activities	806	1,248	195
Net increase (decrease) in cash and cash equivalents	545	(75)	(10)
Cash and cash equivalents at beginning of year	180	255	265
Cash and cash equivalents at end of year	725	180	255
Cash paid during the year
Interest, net of amount capitalized	701	612	585
Income taxes, net of refunds	87	152	176
Significant noncash transactions
Capital lease obligation incurred	0	0	182
Accrued property additions	252	334	329
Asset retirement obligation additions and estimate revisions	($384)	$14	$0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	Dec. 31, 2006
Beginning Balance	$8,693		$8,479	$8,269
Net Income	757	[1]	836	496
Other comprehensive income (loss)	29		(82)	15
Adjustment to initially apply FASB Interpretation No. 48				(2)
Issuance of shares	623		131	46
Stock options exercised			1	105
Allocation of ESOP Shares	21		25	28
Stock-based compensation expense	36		33	71
Dividends ($2.480, $2.465 and $2.445 per share for 2009, 2008 and 2007, respectively)	(704)		(646)	(631)
Sale of subsidiary shares to noncontrolling interests				37
Distributions to noncontrolling interests	(1)		(85)	(10)
Contributions from noncontrolling interests			2	52
Other transactions	1		(1)	3
Ending Balance	9,455		8,693	8,479	8,269
Common Stock [Member]
Beginning Balance, shares	264		260	256
Beginning Balance	6,206		6,028	5,791
Issuance of shares	623		131	46
Issuance of shares, shares	17		4	4
Stock options exercised			1	105
Allocation of ESOP Shares	8		13	15
Stock-based compensation expense	36		33	71
Ending Balance, shares	281		264	260	256
Ending Balance	6,873		6,206	6,028	5,791
Unearned Employee Stock Ownership Plan [Member]
Beginning Balance	(25)		(37)	(50)
Allocation of ESOP Shares	13		12	13
Ending Balance	(12)		(25)	(37)	(50)
Accumulated Other Comprehensive Income [Member]
Beginning Balance	(116)		(34)	(49)
Other comprehensive income (loss)	29		(82)	15
Ending Balance	(87)		(116)	(34)	(49)
Retained Earnings [Member]
Beginning Balance	2,622		2,438	2,567
Net Income	757	[1]	830	504
Adjustment to initially apply FASB Interpretation No. 48				(2)
Dividends ($2.480, $2.465 and $2.445 per share for 2009, 2008 and 2007, respectively)	(704)		(646)	(631)
Ending Balance	2,675		2,622	2,438	2,567
Noncontrolling Interest [Member]
Beginning Balance	6		84	10
Net Income			6	(8)
Sale of subsidiary shares to noncontrolling interests				37
Distributions to noncontrolling interests	(1)		(85)	(10)
Contributions from noncontrolling interests			2	52
Other transactions	1		(1)	3
Ending Balance	$6		$6	$84	$10
[1]Consolidated net income of $761 million includes $4 million attributable to preferred shareholders of subsidiaries, which is not a component of total equity and is excluded from the table above.

1_PARENTHETICAL DATA TO THE CON

PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Dividends, per share	2.48	2.465	2.445

CONSOLIDATED STATEMENTS of COMP

CONSOLIDATED STATEMENTS of COMPREHENSIVE INCOME (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$761	$836	$496
Reclassification adjustments included in net income
Change in cash flow hedges (net of tax expense of $4, $2 and $3, respectively)	6	3	4
Change in unrecognized items for pension and other postretirement benefits (net of tax expense of $3, $1 and $1, respectively)	4	1	2
Net unrealized gains (losses) on cash flow hedges (net of tax (expense) benefit of $(10), $24 and $8, respectively)	16	(37)	(13)
Net unrecognized items on pension and other postretirement benefits (net of tax (expense) benefit of $(1), $29 and $(16), respectively)	2	(49)	23
Other (net of tax benefit of $0, $1 and $3, respectively)	1	0	(1)
Other comprehensive income (loss)	29	(82)	15
Comprehensive income	790	754	511
Comprehensive (income) loss attributable to noncontrolling interests, net of tax	(4)	(6)	8
Comprehensive income attributable to controlling interests	$786	$748	$519

2_PARENTHETICAL DATA to the CON

PARENTHETICAL DATA to the CONSOLIDATED STATEMENTS of COMPREHENSIVE INCOME (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Reclassification adjustments included in net income
Change in cash flow hedges, tax expense	$4	$2	$3
Change in unrecognized items for pension and other postretirement benefits, tax expense	3	1	1
Net unrealized gains (losses) on cash flow hedges, tax (expense) benefit	(10)	24	8
Net unrecognized items on pension and other postretirement benefits, tax (expense) benefit	(1)	29	(16)
Other, tax benefit	$0	$1	$3

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. ORGANIZATION PROGRESS ENERGY, INC. The Parent is a holding company headquartered in Raleigh, N.C. As such, we are subject to regulation by the Federal Energy Regulatory Commission (FERC) under the regulatory provisions of the Public Utility Holding Company Act of 2005 (PUHCA 2005). Our reportable segments are PEC and PEF, both of which are primarily engaged in the generation, transmission, distribution and sale of electricity. The Corporate and Other segment primarily includes amounts applicable to the activities of the Parent and Progress Energy Service Company (PESC) and other miscellaneous nonregulated businesses (Corporate and Other) that do not separately meet the quantitative disclosure requirements as a reportable business segment. See Note 19 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. PECs subsidiaries are involved in insignificant nonregulated business activities. PEC is subject to the regulatory provisions of the North Carolina Utilities Commission (NCUC), Public Service Commission of South Carolina (SCPSC), the United States Nuclear Regulatory Commission (NRC) and the FERC. 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 provisions of the Florida Public Service Commission (FPSC), the NRC and the FERC. B. BASIS OF PRESENTATION These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), including GAAP for regulated operations. The financial statements include the activities of the Parent and our majority-owned and controlled subsidiaries. The Utilities are subsidiaries of Progress Energy, and as such their financial condition and results of operations and cash flows are also consolidated, along with our nonregulated subsidiaries, in our consolidated financial statements. Noncontrolling interests in subsidiaries along with the income or loss attributed to these interests are included in noncontrolling interest in both the Consolidated Balance Sheets and in the Consolidated Statements of Income. The results of operations for noncontrolling interests are reported on a net of tax basis if the underlying subsidiary is structured as a taxable entity. 138 Unconsolidated investments in companies over which we do not have control, but have the ability to exercise influence over operating and financial policies, are accounted for under the equity method of accounting. These investments are primarily in limited liability corporations and limited liability partnerships, and the earnings from these investments are recorded on a pre-tax basis. Other investments are stated principally at cost. These equity and cost method investments are included in miscellaneous other property and investments in the Consolidated Balance Sheets

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
NEW ACCOUNTING STANDARDS	2. NEW ACCOUNTING STANDARDS Effective July 1, 2009, changes to the source of authoritative U.S. GAAP, the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), are communicated through an Accounting Standards Update (ASU). ASUs will be published for all authoritative U.S. GAAP promulgated by the FASB, regardless of the form in which such guidance may have been issued prior to release of the FASB Codification (e.g., FASB Statements, FASB Staff Positions, etc.). ASC 810 Consolidations On January 1, 2009, we implemented ASC 810-10-65, which was previously referred to as Statement of Financial Accounting Standards (SFAS) No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin(ARB) No. 51. ASC 810-10-65 introduces significant changes in the accounting for noncontrolling interests in a partially owned consolidated subsidiary. The adoption of ASC 810-10-65 resulted in a retrospective change in presentation of the financial statements for all periods presented and additional disclosures but did not have a material impact on our or the Utilities' financial position or results of operations. In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities. In January 2010, the FASB issued ASU 2009-17, Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, which codified SFAS No. 167. This guidance makes significant changes to the model for determining who should consolidate a VIE, addresses how often this assessment should be performed, requires all existing arrangements with VIEs to be evaluated, and must be adopted through a cumulative-effect adjustment. This guidance is effective for us on January1, 2010. See Note 1C for information regarding our implementation of ASU 2009-17 and its expected impact on our financial position and results of operations. 144 ASC 815-10-65 (SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133) On January 1, 2009, we implemented ASC 815-10-65, which was previously referred to as SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133. ASC 815-10-65 requires entities to provide enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for and its related interpretations and how derivative instruments and related hedged items affect an entitys financial position, financial performance and cash flows. See Note 17 for information regarding our first quarter 2009 implementation of ASC 815-10-65. The adoption of ASC 815-10-65 did not have a material impact on our or the Utilities' financial position or results of operations. ASC 260-10-45 (FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities) On January 1, 2009, we implemented ASC 260-10-45, which was previously referred to as FSP EITF 03-6-1

DIVESTITURES

DIVESTITURES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
DIVESTITURES	3. DIVESTITURES We completed our business strategy of divesting nonregulated businesses to reduce our business risk and focus on core operations of the Utilities. The information below presents the impacts of the divestitures on net income attributable to controlling interests. A.TERMINALS OPERATIONS AND SYNTHETIC FUELS BUSINESSES On March 7, 2008, we sold coal terminals and docks in West Virginia and Kentucky (Terminals) for $71 million in gross cash proceeds. Proceeds from the sale were used for general corporate purposes. During the year ended December 31, 2008, we recorded an after-tax gain of $42 million on the sale of these assets. The accompanying consolidated financial statements reflect the operations of Terminals as discontinued operations. Prior to 2008, we had substantial operations associated with the production of coal-based solid synthetic fuels as defined under Section 29 (Section 29) of the Code and as redesignated effective 2006 as Section 45K of the Code (Section 45K and, collectively, Section 29/45K). The production and sale of these products qualified for federal income tax credits so long as certain requirements were satisfied. As a result of the expiration of the tax credit program, all of our synthetic fuels businesses were abandoned and all operations ceased as of December 31, 2007. On October 21, 2009, a jury delivered a verdict in a lawsuit against Progress Energy and a number of our subsidiaries and affiliates. As a result, during the year ended December 31, 2009, we recorded an after-tax charge of $74 million to discontinued operations, which was net of a previously recorded indemnification liability of $16 million, and $4 million related to other legal and tax contingency adjustments. The ultimate resolution of these matters could result in further adjustments. See Note 22D for additional information. The accompanying consolidated statements of income reflect the abandoned operations of our synthetic fuels businesses as discontinued operations. 146 Results of Terminals and the synthetic fuels businesses discontinued operations for the years ended December 31 were as follows: (in millions) 2009 2008 2007 Revenues $ $ 17 $ 1,126 (Loss) earnings before income taxes and noncontrolling interest $ (125 ) $ 8 $ 2 Income tax benefit, including tax credits 47 12 64 (Loss) earnings attributable to noncontrolling interests of Synthetic Fuels (1 ) 17 Net (loss) earnings from discontinued operations attributable to controlling interests (78 ) 19 83 Gain on disposal of discontinued operations, including income tax expense of $7 42 (Loss) earnings from discontinued operations attributable to controlling interests $ (78 ) $ 61 $ 83 B.COAL MINING BUSINESSES On March 7, 2008, we sold the remaining operations of Progress Fuels Corporation, formerly Electric Fuels Corporation (Progress Fuels) subsidiaries engaged in the coal mining business (Coal Mining) for gross cash proceeds of $23 million. Proceeds from the sale were used

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
PROPERTY, PLANT AND EQUIPMENT	4. PROPERTY, PLANT AND EQUIPMENT A. UTILITY PLANT The balances of electric utility plant in service at December 31 are listed below, with a range of depreciable lives (in years) for each: Depreciable Progress Energy PEC PEF (in millions) Lives 2009 2008 2009 2008 2009 2008 Production plant 7-43 $ 16,042 $ 14,117 $ 9,579 $ 9,249 6,280 $ 4,689 Transmission plant 17-75 3,273 2,970 1,535 1,457 1,738 1,513 Distribution plant 13-55 8,376 8,028 4,499 4,330 3,877 3,698 General plant and other 5-35 1,227 1,211 684 662 543 549 Utility plant in service $ 28,918 $ 26,326 $ 16,297 $ 15,698 $ 12,438 $ 10,449 Generally, electric utility plant at PEC and PEF, other than nuclear fuel, is pledged as collateral for the first mortgage bonds of PEC and PEF, respectively (See Note 11). AFUDC represents the estimated costs of capital funds necessary to finance the construction of new regulated assets. As prescribed in the regulatory uniform systems of accounts, AFUDC is charged to the cost of the plant for certain projects in accordance with the regulatory provisions for each jurisdiction. The equity funds portion of AFUDC is credited to other income, and the borrowed funds portion is credited to interest charges. Regulatory authorities consider AFUDC an appropriate charge for inclusion in the rates charged to customers by the Utilities over the service life of the property. The composite AFUDC rate for PECs electric utility plant was 9.2%, 9.2% and 8.8% in 2009, 2008 and 2007, respectively. The composite AFUDC rate for PEFs electric utility plant was 8.8% in 2009, 2008 and 2007. Our depreciation provisions on utility plant, as a percent of average depreciable property other than nuclear fuel, were 2.4%, 2.3% and 2.4% in 2009, 2008 and 2007, respectively. The depreciation provisions related to utility plant were $626 million, $578 million and $560 million in 2009, 2008 and 2007, respectively. In addition to utility plant depreciation provisions, depreciation, amortization and accretion expense also includes decommissioning cost provisions, ARO accretion, cost of removal provisions (See Note 4C), regulatory approved expenses (See Notes 7 and 21) and Clean Smokestacks Act amortization (See Note 7B). PECs depreciation provisions on utility plant, as a percent of average depreciable property other than nuclear fuel, were 2.1% for 2009, 2008 and 2007. The depreciation provisions related to utility plant were $328 million, $310 million and $303 million in 2009, 2008 and 2007, respectively. In addition to utility plant depreciation provisions, depreciation, amortization and accretion expense also includes decommissioning cost provisions, ARO accretion, cost of removal provisions (See Note 4C), regulatory approved expenses (See Note 7B) and Clean Smokestacks Act amortization (See Note 7B). PEFs depreciation provisions on utility plant, as a

RECEIVABLES

RECEIVABLES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
RECEIVABLES	5. RECEIVABLES Income taxes receivable and interest income receivables are not included in receivables. These amounts are included in prepayments and other current assets or shown separately on the Consolidated Balance Sheets. At December 31 receivables were comprised of: Progress Energy PEC PEF (in millions) 2009 2008 2009 2008 2009 2008 Trade accounts receivable $ 581 $ 648 $ 291 $ 350 $ 288 $ 298 Unbilled accounts receivable 193 182 125 120 68 62 Notes receivable 2 Derivatives accounts receivable 2 2 Other receivables 42 53 34 38 8 13 Allowance for doubtful receivables (18 ) (18 ) (8 ) (6 ) (10 ) (11 ) Total receivables, net $ 800 $ 867 $ 442 $ 502 $ 356 $ 362

INVENTORY

INVENTORY
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
INVENTORY	6. INVENTORY At December 31 inventory was comprised of: Progress Energy PEC PEF (in millions) 2009 2008 2009 2008 2009 2008 Fuel for production $ 667 $ 614 $ 304 $ 287 $ 363 $ 327 Materials and supplies 639 588 366 338 273 250 Emission allowances 18 37 6 8 12 29 Other 1 1 Total inventory $ 1,325 $ 1,239 $ 677 $ 633 $ 648 $ 606 Materials and supplies amounts above exclude long-term combustion turbine inventory amounts included in other assets and deferred debits on the Consolidated Balance Sheets for Progress Energy of $24 million and $23 million at December 31, 2009 and 2008, respectively. Emission allowances above exclude long-term emission allowances included in other assets and deferred debits on the Consolidated Balance Sheets for Progress Energy, PEC and PEF of $39 million, $8 million and $31 million, respectively, at December 31, 2009. Long-term emission allowances for Progress Energy, PEC and PEF were $61 million, $14 million and $47 million, respectively, at December 31, 2008.

REGULATORY MATTERS

REGULATORY MATTERS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
REGULATORY MATTERS	7. REGULATORY MATTERS A. REGULATORY ASSETS AND LIABILITIES As regulated entities, the Utilities are subject to the provisions of GAAP for regulated operations. Accordingly, the Utilities record certain assets and liabilities resulting from the effects of the ratemaking process that would not be recorded under GAAP for nonregulated entities. The Utilities ability to continue to meet the criteria for application of GAAP for regulated operations could be affected in the future by competitive forces and restructuring in the electric utility industry. In the event that GAAP for regulated operations no longer applies to a separable portion of our operations, related regulatory assets and liabilities would be eliminated unless an appropriate regulatory recovery mechanism was provided. Additionally, such an event would require the Utilities to determine if any impairment to other assets, including utility plant, exists and write down impaired assets to their fair values. Except for portions of deferred fuel costs and loss on reacquired debt, all regulatory assets earn a return or the cash has not yet been expended, in which case the assets are offset by liabilities that do not incur a carrying cost. We expect to fully recover our regulatory assets and refund our regulatory liabilities through customer rates under current regulatory practice. 154 At December 31 the balances of regulatory assets (liabilities) were as follows: Progress Energy (in millions) 2009 2008 Deferred fuel cost current (Notes 7B and 7C) $ 105 $ 335 Nuclear deferral (Note 7C) 37 190 Environmental 8 Total current regulatory assets 142 533 Deferred fuel cost long-term (Note 7B)(a) 62 130 Nuclear deferral (Note 7C)(a) 239 Deferred impact of ARO (Note 4C)(b) 99 348 Income taxes recoverable through future rates(b) 264 193 Loss on reacquired debt(c) 35 37 Storm deferral (Note 7C)(d) 10 16 Postretirement benefits (Note 16)(e) 945 1,042 Derivative mark-to-market adjustment (Note 17A)(f) 436 697 Environmental (Notes 7C and 21A)(g) 24 31 Accrued vacation(a) 10 32 DSM / Energy-efficiency deferral (Note 7B)(h) 19 9 Other 36 32 Total long-term regulatory assets 2,179 2,567 Environmental (Note 7C) (24 ) Deferred energy conservation cost and other current regulatory liabilities (3 ) (6 ) Total current regulatory liabilities (27 ) (6 ) Non-ARO cost of removal (Note 4C)(b) (1,866 ) (1,748 ) Deferred impact of ARO (Note 4C)(b) (150 ) (198 ) Net nuclear decommissioning trust unrealized gains (Note 4C)(i) (295 ) (28 ) Derivative mark-to-market adjustment (Note 17A)(f) (20 ) (26 ) Storm reserve (Note 7C)(g) (136 ) (129 ) Other (43 ) (52 ) Total long-term regulatory liabilities (2,510 ) (2,181 ) Net regulatory (liabilities) assets $ (216 ) $ 913 PEC

GOODWILL

GOODWILL
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
GOODWILL	8. GOODWILL Goodwill is required to be tested for impairment at least annually and more frequently when indicators of impairment exist. All of our goodwill is allocated to our utility segments and our goodwill impairment tests are performed at the utility segment level. At December 31, 2009 and 2008, our carrying amount of goodwill was $3.655 billion, with $1.922 billion assigned to PEC and $1.733 billion assigned to PEF. The amounts assigned to PEC and PEF are recorded in our Corporate and Other business segment. We perform our annual impairment test as of April 1 of each year. During the second quarter in 2009, we completed the 2009 annual tests, which indicated the goodwill was not impaired.

EQUITY

EQUITY
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
EQUITY	9. EQUITY A. COMMON STOCK PROGRESS ENERGY At December 31, 2009 and 2008, we had 500 million shares of common stock authorized under our charter, of which 281 million shares and 264 million shares, respectively, were outstanding. For the years ended December 31, 2009, 2008 and 2007, we issued shares of common stock, primarily under a public offering and to meet the requirements of the Progress Energy 401(k) Savings Stock Ownership Plan (401(k)) and the Progress Energy Investor Plus Plan (IPP). In addition, we periodically issue shares for our other benefit plans. The following table presents information for our common stock issuances: Years Ended December 31, 2009 2008 2007 (in millions) Shares Net Proceeds Shares Net Proceeds Shares Net Proceeds Total issuances 17.5 $ 623 3.7 $ 132 3.7 $ 151 Issuances under a public offering 14.4 523 Issuances to meet requirements of 401(k) and IPP 2.5 100 3.1 131 1.0 46 The shares issued under a public offering were issued on January 12, 2009, at a public offering price of $37.50. We used $100 million of the proceeds to reduce the Parents revolving credit agreement (RCA) borrowings and the remainder was used for general corporate purposes. Subsequent to December 31, 2009, the Parent issued approximately3.6 million shares of common stock resulting in approximately $136 million in proceeds through the IPP. There are various provisions limiting the use of retained earnings for the payment of dividends under certain circumstances. At December 31, 2009, there were no significant restrictions on the use of retained earnings (See Note 11B). PEC At December 31, 2009 and 2008, PEC was authorized to issue up to 200 million shares of common stock. All shares issued and outstanding are held by Progress Energy. There are various provisions limiting the use of retained earnings for the payment of dividends under certain circumstances. At December 31, 2009, there were no significant restrictions on the use of retained earnings. See Note 11B for additional dividend restrictions related to PEC. 164 PEF At December 31, 2009 and 2008, PEF was authorized to issue up to 60 million shares of common stock. All PEF common shares issued and outstanding are indirectly held by Progress Energy. There are various provisions limiting the use of retained earnings for the payment of dividends under certain circumstances. At December 31, 2009, there were no significant restrictions on the use of retained earnings. See Note 11B for additional dividend restrictions related to PEF. B. STOCK-BASED COMPENSATION EMPLOYEE STOCK OWNERSHIP PLAN We sponsor the 401(k) for which substantially all full-time nonbargaining unit employees and certain part-time nonbargaining unit employees within participating subsidiaries are eligible. At December 31, 2009 and 2008, participating subsidiaries were PEC, PEF, PVI, Progress Fuels (corporate employees) and PESC. The 401(k), which has a matching feature, enco

PREFERRED STOCK OF SUBSIDIARIES

PREFERRED STOCK OF SUBSIDIARIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
PREFERRED STOCK OF SUBSIDIARIES	10. PREFERRED STOCK OF SUBSIDIARIES All of our preferred stock was issued by the Utilities. The preferred stock is considered temporary equity due to certain provisions that could require us to redeem the preferred stock for cash. In the eventdividends payable on PEC or PEF preferred stock are in default an amount equivalent toor exceeding four quarterly dividend payments, the holders of the preferred stock are entitled to elect a majority of PEC or PEFs 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 Utilities 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 PEFs 4.75%, $100 par value class, which does not have a liquidation preference. Each holder of PECs preferred stock is entitled to one vote. Theholders of PEFs preferred stock have no right to vote except for certain circumstancesinvolving dividends payable on preferred stock that are in defaultor certain matters affecting the rights and preferences of the preferred stock. At December 31, 2009 and 2008, preferred stock outstanding consisted of the following: Shares Redemption (dollars in millions, except share and per share data) Authorized Outstanding Price Total PEC Cumulative, no par value $5 Preferred Stock 300,000 $5 Preferred 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 PEC 59 PEF Cumulative, $100 par value Preferred Stock 4,000,000 4.00% $100 par value Preferred 39,980 104.25 4 4.40% $100 par value Preferred 75,000 102.00 8 4.58% $100 par value Preferred 99,990 101.00 10 4.60% $100 par value Preferred 39,997 103.25 4 4.75% $100 par value Preferred 80,000 102.00 8 Cumulative, no par value Preferred Stock 5,000,000 $100 par value Preference Stock 1,000,000 Total PEF 34 Total preferred stock of subsidiaries $93

DEBT AND CREDIT FACILITIES

DEBT AND CREDIT FACILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
DEBT AND CREDIT FACILITIES	11. DEBT AND CREDIT FACILITIES A. DEBT AND CREDIT FACILITIES At December 31 our long-term debt consisted of the following (maturities and weighted-average interest rates at December 31, 2009): (in millions) 2009 2008 Parent Senior unsecured notes, maturing 2010-2039 6.50 % $ 4,300 $ 2,600 Draws on revolving credit agreement, expiring 2012 100 Unamortized premium and discount, net (7 ) (4 ) Current portion of long-term debt (100 ) Long-term debt, net 4,193 2,696 PEC First mortgage bonds, maturing 2010-2038 5.60 % 2,525 2,325 Pollution control obligations, maturing 2017-2024 0.80 % 669 669 Senior unsecured notes, maturing 2012 6.50 % 500 500 Miscellaneous notes 6.01 % 21 22 Unamortized premium and discount, net (6 ) (7 ) Current portion of long-term debt (6 ) Long-term debt, net 3,703 3,509 PEF First mortgage bonds, maturing 2010-2038 5.81 % 3,800 3,800 Pollution control obligations, maturing 2018-2027 0.47 % 241 241 Medium-term notes, maturing 2028 6.75 % 150 150 Unamortized premium and discount, net (8 ) (9 ) Current portion of long-term debt (300 ) Long-term debt, net 3,883 4,182 Florida Progress Funding Corporation (See Note 23) Debt to affiliated trust, maturing 2039 7.10 % 309 309 Unamortized premium and discount, net (37 ) (37 ) Long-term debt, net 272 272 Progress Energy consolidated long-term debt, net $ 12,051 $ 10,659 On January 15, 2010, the Parent paid at maturity $100 million of its Series A Floating Rate Notes with proceeds from the $950 million of Senior Notes issued in November 2009. On January 12, 2009, the Parent issued 14.4 million shares of common stock at a public offering price of $37.50 per share. Net proceeds from this offering were $523 million. We used $100 million of the proceeds to reduce the Parents RCA borrowings and the remainder was used for general corporate purposes. On January 15, 2009, PEC issued $600 million of First Mortgage Bonds, 5.30% Series due 2019. A portion of the proceeds was used to repay the maturity of PECs $400 million 5.95% Senior Notes, due March 1, 2009. The remaining proceeds were used to repay PECs outstanding short-term debt and for general corporate purposes. On March 19, 2009, the Parent issued an aggregate $750 million of Senior Notes consisting of $300 million of 6.05% Senior Notes due 2014 and $450 million of 7.05% Senior Notes due 2019. A portion of the proceeds was used to fund PEFs capital expenditures through an equity contribution with the remaining proceeds used for general corporate purposes. On June 18, 2009, PEC entered into a Seventy-seventh Supplement

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
INVESTMENTS	12. INVESTMENTS A. INVESTMENTS At December 31, 2009 and 2008, we had investments in various debt and equity securities, cost investments, company-owned life insurance and investments held in trust funds as follows: Progress Energy PEC PEF (in millions) 2009 2008 2009 2008 2009 2008 Nuclear decommissioning trust (See Notes 4C and 13) $ 1,367 $ 1,089 $ 871 $ 672 $ 496 $ 417 Equity method investments(a) 18 22 5 9 2 2 Cost investments(b) 5 7 4 3 Company-owned life insurance(c) 45 49 35 34 Benefit investment trusts(d) 191 184 90 85 35 30 Marketable debt securities 1 1 Total $ 1,626 $ 1,352 $ 1,005 $ 804 $ 533 $ 449 (a) Investments in unconsolidated companies are accounted for using the equity method of accounting (See Note 1) and are included in miscellaneous other property and investments in the Consolidated Balance Sheets. These investments are primarily in limited liability corporations and limited partnerships, and the earnings from these investments are recorded on a pre-tax basis. (b) Investments stated principally at cost are included in miscellaneous other property and investments in the Consolidated Balance Sheets. (c) Investments in company-owned life insurance approximate fair value due to the nature of the investment and are included in miscellaneous other property and investments in the Consolidated Balance Sheets. (d) Benefit investment trusts are included in miscellaneous other property and investments in the Consolidated Balance Sheets. At December 2009 and 2008, $152 million and $142 million, respectively, of investments in company-owned life insurance were held in Progress Energys trusts. Substantially all of PECs and PEFs benefit investment trusts are invested in company-owned life insurance. B. IMPAIRMENT OF INVESTMENTS We evaluate declines in value of investments under the criteria of GAAP. Declines in fair value to below the cost basis judged to be other than temporary on available-for-sale securities are included in long-term regulatory liabilities on the Consolidated Balance Sheets for securities held in our nuclear decommissioning trust funds and in operation and maintenance expense and other, net on the Consolidated Statements of Income for securities in our benefit investment trusts,other available-for-sale securities and equity and cost method investments. See Note 13 for additional information. There were no material other-than-temporary impairments in 2009, 2008 or 2007.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
FAIR VALUE DISCLOSURES	13. FAIR VALUE DISCLOSURES A. DEBT AND INVESTMENTS PROGRESS ENERGY DEBT The carrying amount of our long-term debt, including current maturities, was $12.457 billion and $10.659 billion at December 31, 2009 and 2008, respectively. The estimated fair value of this debt, as obtained from quoted market prices for the same or similar issues, was $13.4 billion and $11.3 billion at December 31, 2009 and 2008, respectively. INVESTMENTS Certain investments in debt and equity securities that have readily determinable market values are accounted for as available-for-sale securities at fair value. Our available-for-sale securities include investments in stocks, bonds and cash equivalents held in trust funds, pursuant to NRC requirements, to fund certain costs of decommissioning the Utilities nuclear plants (See Note 4C). NDT funds are presented on the Consolidated Balance Sheets at fair value. In addition to the NDT funds, we hold other debt investments classified as available-for-sale, which are included in miscellaneous other property and investments on the Consolidated Balance Sheets at fair value. The following table summarizes our available-for-sale securities at December 31, 2009 and 2008. 2009 Unrealized Unrealized Estimated (in millions) Losses Gains Fair Value Equity securities $ (22 ) $ 306 $ 855 Corporate debt securities (1 ) 5 71 U.S. state and municipal debt securities (2 ) 3 118 U.S.and foreign government debt securities (1 ) 8 197 Money market funds and other securities 161 Total $ (26 ) $ 322 $ 1,402 2008 Unrealized Unrealized Estimated (in millions) Losses Gains Fair Value Equity securities $ (93 ) $ 134 $ 559 Corporate debt securities (5 ) 53 U.S. state and municipal debt securities (19 ) 4 233 U.S. andforeign governmentdebt securities (2 ) 11 171 Money market funds and other securities (1 ) 123 Total $ (120 ) $ 149 $ 1,139 The NDT funds and other available-for-sale debt investments held in certain benefit trusts are managed by third-party investment managers who have a right to sell securities without our authorization. Net unrealized gains and losses of the NDT funds that would be recorded in earnings or other comprehensive income by a nonregulated entity are recorded as regulatory assets and liabilities (See Note 7A) pursuant to ratemaking treatment. Therefore, the preceding tables include the unrealized gains and losses for the NDT funds based on the original cost of the trust investments; all of the unrealized losses and unrealized gains for 2009, and $118 million of the unrealized losses and $148 million of the unrealized gains for 2008, relate to the NDT funds. There were no material unrealized losses for the other available-for-sale debtsecurities held in benefit trusts at December 31, 2009 and 2008. The aggregate fair value of investments that related to the 2009 and 2008 unrealized lo

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
INCOME TAXES	14. INCOME TAXES We provide deferred income taxes for temporary differences between book and tax carrying amounts of assets and liabilities. Investment tax credits related to regulated operations have been deferred and are being amortized over the estimated service life of the related properties. To the extent that the establishment of deferred income taxes is different from the recovery of taxes by the Utilities through the ratemaking process, the differences are deferred pursuant to GAAP for regulated operations. A regulatory asset or liability has been recognized for the impact of tax expenses or benefits that are recovered or refunded in different periods by the Utilities pursuant to rate orders. We accrue for uncertain tax positions when it is determined that it is more likely than not that the benefit will not be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the tax benefit recognized is measured at the largest amount that, in our judgment, is greater than 50 percent likely to be realized. 183 PROGRESS ENERGY Accumulated deferred income tax assets (liabilities) at December 31 were: (in millions) 2009 2008 Deferred income tax assets ARO liability $ 127 $ 264 Derivative instruments 159 298 Income taxes refundable through future rates 225 111 Pension and other postretirement benefits 508 544 Other 374 340 Federal income tax credit carry forward 712 802 State net operating loss carry forward (net of federal expense) 66 64 Valuation allowance (55 ) (55 ) Total deferred income tax assets 2,116 2,368 Deferred income tax liabilities Accumulated depreciation and property cost differences (1,889 ) (1,665 ) Deferred fuel recovery (74 ) (186 ) Income taxes recoverable through future rates (782 ) (959 ) Other (264 ) (141 ) Total deferred income tax liabilities (3,009 ) (2,951 ) Total net deferred income tax liabilities $ (893 ) $ (583 ) The above amounts were classified on the Consolidated Balance Sheets as follows: (in millions) 2009 2008 Current deferred income tax assets, included in prepayments and other current assets $ 168 $ 96 Noncurrent deferred income tax assets, included in other assets and deferred debits 37 32 Current deferred income tax liabilities, included in other current liabilities (1 ) Noncurrent deferred income tax liabilities, included in noncurrent income tax liabilities (1,098 ) (710 ) Total net deferred income tax liabilities $ (893 ) $ (583 ) At December 31, 2009, the federal income tax credit carry forward includes $712 million of alternative minimum tax credits that do not expire. At December 31, 2009, we had gross state net operating loss carry forwards of $1.6 billion that will expire during the period 2010 through 2029. Valuati

CONTINGENT VALUE OBLIGATIONS

CONTINGENT VALUE OBLIGATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
CONTINGENT VALUE OBLIGATIONS	15. CONTINGENT VALUE OBLIGATIONS In connection with the acquisition of Florida Progress during 2000, the Parent issued 98.6 million CVOs. Each CVO represents the right of the holder to receive contingent payments based on the performance of four coal-based solid synthetic fuels limited liability companies, of which three were wholly owned (Earthco), purchased by subsidiaries of Florida Progress in October 1999. All of our synthetic fuels businesses were abandoned and all operations ceased as of December 31, 2007 (See Note 3A). The payments are based on the net after-tax cash flows the facilities generate. We will make deposits into a CVO trust for estimated contingent payments due to CVO holders based on the results of operations and the utilization of tax credits. Monies held in the trust are generally not payable to the CVO holders until the completion of income tax audits. The CVOs are derivatives and are recorded at fair value. The unrealized loss/gain recognized due to changes in fair value is recorded in other, net on the Consolidated Statements of Income (See Note 20). At December 31, 2009 and 2008, the CVO liability included in other liabilities and deferred credits on our Consolidated Balance Sheets was $15 million and $34 million, respectively. During the year ended December 31, 2008, a $6 million deposit was made into the CVO trust for the CVO holders share of the disposition proceeds from the sale of one of the Earthco synthetic fuels facilities (See Note 3E). Disposition proceeds payments will not generally be made to CVO holders until the termination of all indemnity obligations under the purchase and sale agreement related to the disposition. Future payments will include principal and interest earned during the investment period net of expenses deducted. The interest earned on the payments held in trust for 2009 and 2008 was insignificant. The asset is included in other assets and deferred debits on the Consolidated Balance Sheet at December 31, 2009 and 2008.

BENEFIT PLANS

BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
BENEFIT PLANS	16. BENEFIT PLANS A. POSTRETIREMENT BENEFITS We have noncontributory defined benefit retirement plans that provide pension benefits for substantially all full-time employees. We also have supplementary defined benefit pension plans that provide benefits to higher-level employees. In addition to pension benefits, we provide contributory other postretirement benefits (OPEB), including certain health care and life insurance benefits, for retired employees who meet specified criteria. We use a measurement date of December 31 for our pension and OPEB plans. COSTS OF BENEFIT PLANS Prior service costs and benefits are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of assets are amortized over the average remaining service period of active participants. To determine the market-related value of assets, we use a five-year averaging method for a portion of the pension assets and fair value for the remaining portion. We have historically used the five-year averaging method. When we acquired Florida Progress in 2000, we retained the Florida Progress historical use of fair value to determine market-related value for Florida Progress pension assets. 191 The tables below provide the components of the net periodic benefit cost for 2009, 2008 and 2007. A portion of net periodic benefit cost is capitalized as part of construction work in progress. Progress Energy Pension Benefits Other Postretirement Benefits (in millions) 2009 2008 2007 2009 2008 2007 Service cost $ 42 $ 46 $ 46 $ 7 $ 8 $ 7 Interest cost 138 128 123 31 34 32 Expected return on plan assets (133 ) (170 ) (155 ) (4 ) (6 ) (6 ) Amortization of actuarial loss(a) 54 8 15 1 1 2 Other amortization, net(a) 6 2 2 5 5 5 Net periodic cost before deferral(b) $ 107 $ 14 $ 31 $ 40 $ 42 $ 40 (a) Adjusted to reflect PEFs rate treatment (See Note 16B). (b) In June 2009, PEF received permission from the FPSC to defer the retail portion of certain pension expense in 2009. The FPSC order did not change the total net periodic pension cost, but defers a portion of these costs to be recovered in future periods. During 2009, PEF deferred $34 million of net periodic pension cost as a regulatory asset (see Note 7C). PEC Pension Benefits Other Postretirement Benefits (in millions) 2009 2008 2007 2009 2008 2007 Service cost $ 18 $ 23 $ 23 $ 5 $ 5 $ 5 Interest cost 64 58 56 16 17 15 Expected return on plan assets (67 ) (66 ) (60 ) (2 ) (4 ) (4 ) Amortization of actuarial loss 11 6

RISK MANAGEMENT ACTIVITIES AND

RISK MANAGEMENT ACTIVITIES AND DERIVATIVE TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
RISK MANAGEMENT ACTIVITIES AND DERIVATIVE TRANSACTIONS	17. RISK MANAGEMENT ACTIVITIES AND DERIVATIVES TRANSACTIONS We are exposed to various risks related to changes in market conditions. We have a risk management committee that includes senior executives from various business groups. The risk management committee is responsible for administering risk management policies and monitoring compliance with those policies by all subsidiaries. Under our risk policy, we may use a variety of instruments, including swaps, options and forward contracts, to manage exposure to fluctuations in commodity prices and interest rates. Such instruments contain credit risk if the counterparty fails to perform under the contract. We minimize such risk by performing credit and financial reviews using a combination of financial analysis and publicly available credit ratings of such counterparties. Potential nonperformance by counterparties is not expected to have a material effect on our financial position or results of operations. A. COMMODITY DERIVATIVES GENERAL Most of our physical commodity contracts are not derivatives or qualify as normal purchases or sales. Therefore, such contracts are not recorded at fair value. DISCONTINUED OPERATIONS As discussed in Note 3C, in 2007 our subsidiary PVI sold or assigned substantially all of its CCO physical and commercial assets and liabilities representing substantially all of our nonregulated energy marketing and trading operations. For the year ended December 31, 2007, $88 million of after-tax gains from derivative instruments related to our nonregulated energy marketing and trading operations was included in discontinued operations on the Consolidated Statements of Income. In 2007, we entered into derivative contracts to hedge economically a portion of our synthetic fuels cash flow exposure to the risk of rising oil prices. The contracts were marked-to-market with changes in fair value recorded through earnings. These contracts ended on December 31, 2007, and were settled for cash in January 2008, with no material impact to 2008 earnings. Approximately 34 percent of the notional quantity of these contracts was entered into by Ceredo Synfuel LLC (Ceredo). As discussed in Note 3E, we disposed of our 100 percent ownership interest in Ceredo in March 2007. Progress Energy is the primary beneficiary of, and continues to consolidate, Ceredo in accordance with GAAP for variable interest entities, but we have recorded a 100 percent noncontrolling interest. Consequently, subsequent to the disposal there is no net earnings impact for the portion of the contracts entered into by Ceredo. Because we have abandoned our majority-owned facilities and our other synthetic fuels operations ceased as of December 31, 2007, gains and losses on these contracts were included in discontinued operations, net of tax on the Consolidated Statement of Income in 2007. During the year ended December 31, 2007, we recorded net pre-tax gains of $168 million related to these contracts. Of this amount, $57 million was attributable to Ceredo, of which $42 million was attributed to noncontrolling interest for the portion of the gain subsequent to the disposal of Ceredo.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
RELATED PARTY TRANSACTIONS	18. RELATED PARTY TRANSACTIONS As a part of normal business, we enter into various agreements providing financial or performance assurances to third parties. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiaries intended commercial purposes. Our guarantees may include performance obligations under power supply agreements, transmission agreements, gas agreements, fuel procurement agreements, trading operations and cash management. Our guarantees also include standby letters of credit and surety bonds. At December 31, 2009, the Parent had issued $391 million of guarantees for future financial or performance assurance on behalf of its subsidiaries. This includes $300 million of guarantees of certain payments of two wholly owned indirect subsidiaries (See Note 23). Subsequent to December 31, 2009, the Parent issued a $76 million guarantee for performance assurance of a wholly owned indirect subsidiary. We do not believe conditions are likely for significant performance under the guarantees of performance issued by or on behalf of affiliates. To the extent liabilities are incurred as a result of the activities covered by the guarantees, such liabilities are included in the Consolidated Balance Sheet. Our subsidiaries provide and receive services, at cost, to and from the Parent and its subsidiaries, in accordance with agreements approved by the SEC pursuant to Section 13(b) of the Public Utility Holding Company Act of 1935. The repeal of the Public Utility Holding Company Act of 1935 effective February 8, 2006, and subsequent regulation by the FERC did not change our current intercompany services. Services include purchasing, human resources, accounting, legal, transmission and delivery support, engineering materials, contract support, loaned employees payroll costs, construction management and other centralized administrative, management and support services. The costs of the services are billed on a direct-charge basis, whenever possible, and on allocation factors for general 211 costs that cannot be directly attributed. Billings from affiliates are capitalized or expensed depending on the nature of the services rendered. Amounts receivable from and/or payable to affiliated companies for these services are included in receivables from affiliated companies and payables to affiliated companies on the Balance Sheets. PESC provides the majority of the affiliated services under the approved agreements. Services provided by PESC during 2009, 2008 and 2007 to PEC amounted to $170 million, $194 million and $182 million, respectively, and services provided to PEF were $147 million, $160 million and $174 million, respectively. PEC and PEF also provide and receive services at cost. Services provided by PEC to PEF during 2009, 2008 and 2007 amounted to $36 million, $44 million and $54 million, respectively. Services provided by PEF to PEC during 2009, 2008 and 2007 amounted to $12 million, $12 million and $10 million, respectively. PEC and PEF part

FINANCIAL INFORMATION BY BUSINE

FINANCIAL INFORMATION BY BUSINESS SEGMENT
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
FINANCIAL INFORMATION BY BUSINESS SEGMENT	19. FINANCIAL INFORMATION BY BUSINESS SEGMENT Our reportable segments are PEC and PEF, both of which are primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina and in portions of Florida, respectively. 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 segments, the Corporate and Other segment includes the operations of the Parent and PESC and other miscellaneous nonregulated businesses that do not separately meet the quantitative thresholds for disclosure as separate reportable business segments. Products and services are sold between the various reportable segments. All intersegment transactions are at cost. In the following tables, capital and investment expenditures include property additions, acquisitions of nuclear fuel and other capital investments. Operational results and assets to be divested are not included in the table presented below. (in millions) PEC PEF Corporate and Other Eliminations Totals At and for the year ended December 31, 2009 Revenues Unaffiliated $ 4,627 $ 5,249 $ 9 $ $ 9,885 Intersegment 2 234 (236 ) Total revenues 4,627 5,251 243 (236 ) 9,885 Depreciation, amortization and accretion 470 502 14 986 Interest income 5 4 38 (33 ) 14 Total interest charges, net 195 231 286 (33 ) 679 Income tax expense (benefit) (a) 294 209 (87 ) 416 Ongoing Earnings (loss) 540 460 (154 ) 846 Total assets 13,502 13,100 20,538 (15,904 ) 31,236 Capital and investment expenditures 962 1,532 21 (12 ) 2,503 212 (in millions) PEC PEF Corporate and Other Eliminations Totals At and for the year ended December 31, 2008 Revenues Unaffiliated $ 4,429 $ 4,730 $ 8 $ $ 9,167 Intersegment 1 361 (362 ) Total revenues 4,429 4,731 369 (362 ) 9,167 Depreciation, amortization and accretion 518 306 15 839 Interest income 12 9 38 (35 ) 24 Total interest charges, net 207 208 259 (35 ) 639 Income tax expense (benefit) 298 181 (84 ) 395 Ongoing Earnings (loss) 531 383 (138 ) 776 Total assets 13,165 12,471 17,483 (13,246 ) 29,873 Capital and investment expenditures 939 1,601 33 (13 ) 2,560 (in millions) PEC PEF Corporate and Other Eliminations Totals At and for the year ended December 31, 2007 Revenues Unaffiliated $ 4,38

OTHER INCOME AND OTHER EXPENSE

OTHER INCOME AND OTHER EXPENSE
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
OTHER INCOME AND OTHER EXPENSE	20. OTHER INCOME AND OTHER EXPENSE Other income and expense includes interest income; AFUDC equity, which represents the estimated equity costs of capital funds necessary to finance the construction of new regulated assets; and other, net. The components of other, net as shown on the accompanying Statements of Income are presented below. Nonregulated energy and delivery services include power protection services and mass market programs such as surge protection, appliance services and area light sales, and delivery, transmission and substation work for other utilities. Progress Energy (in millions) 2009 2008 2007 Nonregulated energy and delivery services income, net $ 17 $ 17 $ 12 Fair value loss transition adjustment amortization (Note 17D) 2 3 4 CVO unrealized gain (loss), net (Note 15) 19 (2 ) Donations (20 ) (25 ) (22 ) Other, net (12 ) (12 ) 1 Other, net $ 6 $ (17 ) $ (7 ) PEC (in millions) 2009 2008 2007 Nonregulated energy and delivery services income, net $ 6 $ 11 $ 6 Fair value loss transition adjustment amortization (Note 17D) 2 3 4 Donations (10 ) (14 ) (9 ) Other, net (16 ) 4 5 Other, net $ (18 ) $ 4 $ 6 PEF (in millions) 2009 2008 2007 Nonregulated energy and delivery services income, net $ 11 $ 8 $ 8 Donations (10 ) (11 ) (8 ) Other, net 4 (7 ) (2 ) Other, net $ 5 $ (10 ) $ (2 )

ENVIRONMENTAL MATTERS

ENVIRONMENTAL MATTERS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
ENVIRONMENTAL MATTERS	21. ENVIRONMENTAL MATTERS We are subject to regulation by various federal, state and local authorities in the areas of air quality, water quality, control of toxic substances and hazardous and solid wastes, and other environmental matters. We believe that we are in substantial compliance with those environmental regulations currently applicable to our business and operations and believe we have all necessary permits to conduct such operations. Environmental laws and regulations frequently change and the ultimate costs of compliance cannot always be precisely estimated. A. HAZARDOUS AND SOLID WASTE The provisions of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (CERCLA), authorize the United States Environmental Protection Agency (EPA) to require the cleanup of hazardous waste sites. This statute imposes retroactive joint and several liabilities. Some states, including North Carolina, South Carolina and Florida, have similar types of statutes. We are periodically notified by regulators, including the EPA and various state agencies, of our involvement or potential involvement in sites that may require investigation and/or remediation. There are presently several sites with respect to which we have been notified of our potential liability by the EPA, the state of North Carolina, the state of Florida, or potentially responsible party (PRP) groups as described below in greater detail. Various organic materials associated with the production of manufactured gas, generally referred to as coal tar, are regulated under federal and state laws. PEC and PEF are each PRPs at several manufactured gas plant (MGP) sites. We are also currently in the process of assessing potential costs and exposures at other sites. These costs are eligible for regulatory recovery through either base rates or cost- 214 recovery clauses. Both PEC and PEF evaluate potential claims against other PRPs and insurance carriers and plan to submit claims for cost recovery where appropriate. The outcome of potential and pending claims cannot be predicted. A discussion of sites by legal entity follows. We record accruals for probable and estimable costs related to environmental sites on an undiscounted basis. We measure our liability for these sites based on available evidence including our experience in investigating and remediating environmentally impaired sites. The process often involves assessing and developing cost-sharing arrangements with other PRPs. For all sites, as assessments are developed and analyzed, we will accrue costs for the sites to the extent our liability is probable and the costs can be reasonably estimated. Because the extent of environmental impact, allocation among PRPs for all sites, remediation alternatives (which could involve either minimal or significant efforts), and concurrence of the regulatory authorities have not yet reached the stage where a reasonable estimate of the remediation costs can be made, we cannot determine the total costs that may be incurred in connection with the remediation of all sites at this time. It is probable that current estimates will change and

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
COMMITMENTS AND CONTINGENCIES	22. COMMITMENTS AND CONTINGENCIES A. PURCHASE OBLIGATIONS In most cases, our purchase obligation contracts contain provisions for price adjustments, minimum purchase levels and other financial commitments. The commitment amounts presented below are estimates and therefore will likely differ from actual purchase amounts. At December 31, 2009, the following table reflects contractual cash obligations and other commercial commitments in the respective periods in which they are due: Progress Energy (in millions) 2010 2011 2012 2013 2014 Thereafter Fuel $ 2,647 $ 2,335 $ 1,953 $ 1,706 $ 1,405 $ 8,217 Purchased power 445 467 447 445 367 3,636 Construction obligations 1,820 1,725 1,453 1,524 1,313 1,543 Other purchase obligations 52 74 36 27 19 163 Total $ 4,964 $ 4,601 $ 3,889 $ 3,702 $ 3,104 $ 13,559 PEC (in millions) 2010 2011 2012 2013 2014 Thereafter Fuel $ 1,354 $ 1,192 $ 1,004 $ 1,003 $ 802 $ 3,553 Purchased power 91 98 80 73 68 505 Construction obligations 365 184 13 15 4 Other purchase obligations 16 11 5 5 6 6 Total $ 1,826 $ 1,485 $ 1,102 $ 1,096 $ 880 $ 4,064 218 PEF (in millions) 2010 2011 2012 2013 2014 Thereafter Fuel $ 1,293 $ 1,143 $ 949 $ 703 $ 603 $ 4,664 Purchased power 354 369 367 372 299 3,131 Construction obligations 1,455 1,541 1,440 1,509 1,309 1,543 Other purchase obligations 23 36 29 21 14 157 Total $ 3,125 $ 3,089 $ 2,785 $ 2,605 $ 2,225 $ 9,495 FUEL AND PURCHASED POWER Through our subsidiaries, we have entered into various long-term contracts for coal, oil, gas and nuclear fuel as well as transportation agreements for the related fuel. Our payments under these commitments were $2.921 billion, $3.078 billion and $2.360 billion for 2009, 2008 and 2007, respectively. PECs total payments under these commitments for its generating plants were $1.527 billion, $1.446 billion and $1.049 billion in 2009, 2008 and 2007, respectively. PEFs payments totaled $1.394 billion, $1.632 billion and $1.311 billion in 2009, 2008 and 2007, respectively. Essentially all fuel and certain purchased power costs incurred by PEC and PEF are recovered through their respective cost-recovery clauses. In December 2008, PEF entered into a nuclear fuel fabrication contract for the planned Levy nuclear units. (See discussion under Construction Obligations below.) This $334 million contract (fuel plus related core components) is for the period from 2014 through 2027 and contains exit provisions with t

CONDENSED CONSOLIDATING STATEME

CONDENSED CONSOLIDATING STATEMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
CONDENSED CONSOLIDATING STATEMENTS	23. CONDENSED CONSOLIDATING STATEMENTS Presented below are the Condensed Consolidating Statements of Income, Balance Sheets and Cash Flows as required by Rule 3-10 of Regulation S-X. In September 2005, we issued our guarantee of certain payments of two wholly owned indirect subsidiaries, FPC Capital I (the Trust) and Florida Progress Funding Corporation (Funding Corp.). Our guarantees are in addition to the previously issued guarantees of our wholly owned subsidiary, Florida Progress. The Trust, a finance subsidiary, was established in 1999 for the sole purpose of issuing $300 million of 7.10% Cumulative Quarterly Income Preferred Securities due 2039, Series A (Preferred Securities) and using the proceeds thereof to purchase from Funding Corp. $300 million of 7.10% Junior Subordinated Deferrable Interest Notes due 2039 (Subordinated Notes). The Trust has no other operations and its sole assets are the Subordinated Notes and Notes Guarantee (as discussed below). Funding Corp. is a wholly owned subsidiary of Florida Progress and was formed for the sole purpose of providing financing to Florida Progress and its subsidiaries. Funding Corp. does not engage in business activities other than such financing and has no independent operations. Since 1999, Florida Progress has fully and unconditionally guaranteed the obligations of Funding Corp. under the Subordinated Notes (the Notes Guarantee). In addition, Florida Progress guaranteed the payment of all distributions related to the $300 million Preferred Securities required to be made by the Trust, but only to the extent that the Trust has funds available for such distributions (the Preferred Securities Guarantee). The Preferred Securities Guarantee, considered together with the Notes Guarantee, constitutes a full and unconditional guarantee by Florida Progress of the Trusts obligations under the Preferred Securities. The Preferred Securities and Preferred Securities Guarantee are listed on the New York Stock Exchange. The Subordinated Notes may be redeemed at the option of Funding Corp. at par value plus accrued interest through the redemption date. The proceeds of any redemption of the Subordinated Notes will be used by the Trust to redeem proportional amounts of the Preferred Securities and common securities in accordance with their terms. Upon liquidation or dissolution of Funding Corp., holders of the Preferred Securities would be entitled to the liquidation preference of $25 per share plus all accrued and unpaid dividends thereon to the date of payment. The annual interest expense is $21 million and is reflected in the Consolidated Statements of Income. We have guaranteed the payment of all distributions related to the Trust's Preferred Securities. At December 31, 2009, the Trust had outstanding 12 million shares of the Preferred Securities with a liquidation value of $300 million. Our guarantees are joint and several, full and unconditional and are in addition to the joint and several, full and unconditional guarantees previously issued to the Trust and Funding Corp. by Florida Progress. Our subsidiaries have provisions restricting the payment of dividends to the Parent in

QUARTERLY FINANCIAL DATA

QUARTERLY FINANCIAL DATA (UNAUDITED)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
QUARTERLY FINANCIAL DATA (UNAUDITED)	24. QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data was as follows: Progress Energy (in millions except per share data) First Second Third Fourth 2009 Operating revenues $ 2,442 $ 2,312 $ 2,824 $ 2,307 Operating income 393 379 676 324 Income from continuing operations 183 175 350 132 Net income 183 174 248 156 Net income attributable to controlling interests 182 174 247 154 Common stock data Basic and diluted earnings per common share Income from continuing operations attributable to controlling interests, net of tax 0.66 0.62 1.24 0.46 Net income attributable to controlling interests 0.66 0.62 0.88 0.55 Dividends declared per common share 0.620 0.620 0.620 0.620 Market price per share High 40.85 38.20 40.05 42.20 Low 31.35 33.50 35.97 36.67 2008(a) Operating revenues $ 2,066 $ 2,244 $ 2,696 $ 2,161 Operating income 365 406 591 321 Income from continuing operations 153 200 309 116 Net income 214 205 310 107 Net income attributable to controlling interests 209 205 309 107 Common stock data Basic and diluted earnings per common share Income from continuing operations attributable to controlling interests, net of tax 0.57 0.76 1.18 0.44 Net income attributable to controlling interests 0.80 0.78 1.18 0.41 Dividends declared per common share 0.615 0.615 0.615 0.620 Market price per share High 49.16 43.58 45.52 45.60 Low 40.54 41.00 40.11 32.60 (a) Balances have been restated for the adoption of new accounting guidance, which modified the financial statement presentation of subsidiaries that are less than wholly owned (See Note 2). In the opinion of management, all adjustments necessary to fairly present amounts shown for interim periods have been made. Results of operations for an interim period may not give a true indication of results for the year. Typically, weather conditions in our service territories directly influence the demand for electricity and affect the price of energy commodities necessary to provide electricity to our customers. As a result, our overall operating results may fluctuate substantially on a seasonal basis. During the fourth quarter of 2009, we recorded a cumulative prior period adjustment related to certain employee life insurance benefits. The impact of this adjustment decreased total other income, net, by $16 million and decreased net income attributable to controlling interests by $10 million. The prior period adjustment is not material to previously issued or current period financial state

VALUATION OF QUALIFYING ACCOUNT

VALUATION OF QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to the Financial Statements [Abstract]
VALUATION OF QUALIFYING ACCOUNTS	PROGRESS ENERGY, INC. Schedule II Valuation and Qualifying Accounts For the Years Ended (in millions) Description Balance at Beginning of Period Additions Charged to Expenses Other Additions Deductions(a) Balance at End of Period Valuation and qualifying accounts deducted on the balance sheet from the related assets: DECEMBER 31, 2009 Uncollectible accounts $ 18 $ 32 $ $ (32 ) $ 18 Inventory valuation(b) 14 14 Fossil fuel plants dismantlement reserve 145 1 (3 ) 143 Nuclear refueling outage reserve 14 18 (27 ) 5 DECEMBER 31, 2008 Uncollectible accounts $ 29 $ 24 $ $ (35 ) $ 18 Fossil fuel plants dismantlement reserve 144 1 145 Nuclear refueling outage reserve 2 12 14 DECEMBER 31, 2007 Uncollectible accounts $ 28 $ 26 $ (1 ) $ (24 ) $ 29 Fossil fuel plants dismantlement reserve 145 1 (2 ) 144 Nuclear refueling outage reserve 16 15 (29 ) 2 (a) Deductions from provisions represent losses or expenses for which the respective provisions were created. In the case of the provision for uncollectible accounts, such deductions are reduced by recoveries of amounts previously written off. (b) Relates to the impact of PEC's decision to retire 11 coal-fired units prior to the end of their estimated useful lives.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Line Items]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	PROGRESS ENERGY INC
Entity Central Index Key	0001094093
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$10,535,128,179
Entity Common Stock Shares Outstanding		284,621,114