As filed with the Securities and Exchange Commission on February 6, 2002
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (date of earliest event reported):
January 23, 2002
Commission Exact name of registrant as specified in its charter, I.R.S. Employer
File state of incorporation, address of principal Identification
Number executive offices, and telephone number Number
1-15929 Progress Energy, Inc. 56-2155481
410 S. Wilmington Street
Raleigh, North Carolina 27601-1748
Telephone: (919) 546-6411
State of Incorporation: North Carolina
The address of the registrant has not changed since the last report.
ITEM 5. OTHER EVENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Form 8-K contains forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve estimates, projections, goals, forecasts,
assumptions, risk and uncertainties that could cause actual results to differ
materially from those expressed in the forward-looking statements. Examples of
risk factors that you should consider with respect to any forward-looking
statements made in this Form 8-K include, but are not limited to, recent
activities such as the ability to consummate the proposed acquisition of
Westchester Gas Company and the acquisition of gas-fired generation in Georgia
from LG&E Energy Corp. (LG&E) and to realize the potential benefits of these
acquisitions. Risk factors are detailed from time to time in the company's SEC
reports. All such factors are difficult to predict, contain uncertainties that
may materially affect actual results and may be beyond the ability of the
company to control or estimate precisely.
GENERAL
On January 23, 2002, Progress Energy reported consolidated net income of $541.6
million, or $2.65 per share for 2001. Earnings were $3.40 per share in 2001
before one-time after-tax charges of $0.75 per share or $152.8 million. The
one-time charges result from the writedown of the Interpath investment and
certain assets in the SRS subsidiary.
The Progress Ventures business unit - which participates in the wholesale energy
business - contributed $1.41 per share for the year. Of this total, $0.42 per
share is related to the management of wholesale contracts and trading on behalf
of the utility operating companies.
SIGNIFICANT RECENT DEVELOPMENTS
Private Letter Rulings
The company recently received Private Letter Rulings (PLRs) from the
Internal Revenue Service for four synthetic fuel facilities. All
majority-owned synthetic fuel facilities, representing 98 percent of
production, are now covered by PLRs. The operating criteria reflected
in the PLRs are consistent with the way the company has historically
operated these facilities. As stated previously, the company is
exploring the possible sale of an interest in its synthetic fuel
facilities to optimize the total value of this line of business.
Florida Rate Case
In May 2001, the Florida Public Service Commission (FPSC) issued an
order initiating a rate case for Florida Power. The calculation of the
company's revenue requirements, along with supporting testimony, was
filed on September 14, 2001, and certain updated information was filed
on November 15, 2001. The FPSC staff testimony is scheduled to be filed
on January 28, 2002. Hearings are scheduled to begin March 20, 2002,
with a final staff recommendation expected May 2002. The commissioners
have encouraged the FPSC staff and the company to negotiate a
settlement before then if possible.
Progress Ventures - Generation
In November 2001, Progress Energy announced the acquisition of 1,182
megawatts of gas-fired generation in Georgia from LG&E. The transaction
includes a power sales agreement for the entire output of the plants
through December 31, 2004, and is expected to close in the first half
of 2002.
Progress Ventures - Fuels
On January 11, 2002, Progress Energy announced that it had entered into
a letter of intent with Westchester Gas Company to acquire
approximately 215 producing natural gas wells, 52 miles of intrastate
gas pipeline and 170 miles of gas-gathering systems. The properties are
located within a 25-mile radius of Jonesville, Texas, on the
Texas-Louisiana border. This will add 140 billion cubic feet (Bcf) of
gas reserves to Progress Ventures' fuel business, which more than
doubles its gas reserves and potential annual production levels.
Nuclear Operations World Record
On January 21, 2002, Brunswick Plant Unit 1 surpassed the 668-day
continuous run record that had been set in 1999. Breaking this record
means that the Brunswick Plant now holds the world record for operating
a light water reactor without a shutdown.
LINE OF BUSINESS/SEGMENT FINANCIAL INFORMATION
The operations of Florida Progress were included in Progress Energy's earnings
subsequent to the acquisition date of November 30, 2000, and, therefore, one
month of operations is reflected in the period ended December 31, 2000, except
for Progress Rail, which was classified as assets held for sale. 2001 includes a
full year of Florida Progress operations in Progress Energy results.
The discussion below for Florida Power, Progress Telecom and Progress Rail
compares full-year data for 2000 and 2001.
UTILITIES
CP&L
For the year, CP&L electric operations contributed earnings of $468.3
million compared to $373.8 million in 2000. 2000 results included
accelerated depreciation expense on nuclear assets of $275 million
while 2001 results included $75 million. In addition, CP&L's earnings
were positively impacted by an operating expense reduction of $24.6
million in 2001 and the addition of approximately 31,000 new CP&L
customers, a 2.4 percent increase over 2000. These factors were
partially offset by mild weather in 2001 and a continued weakness in
industrial wholesale sales, as shown in the table after the discussion
of Florida Power's results.
CP&L electric operations include earnings of $62.7 million in 2001
compared to $84 million in 2000 related to energy marketing and
trading, which are managed on behalf of the utility by Progress
Ventures business unit. These amounts are also included in Progress
Ventures business unit's earnings.
Florida Power
Florida Power electric operations had earnings of $309.6 million in
2001 compared to $322.2 million in 2000. Factors negatively impacting
this year's earnings were milder than normal weather, a slowdown in
industrial sales and accelerated amortization on the Tiger Bay
regulatory asset. Please see the table that follows for a breakdown of
sales by customer class. Earnings were positively impacted by the
addition of approximately 35,000 new Florida Power customers, a 2.5
percent increase over 2000.
The Tiger Bay regulatory asset was created as a result of the early
termination of certain long-term cogeneration contracts. The company
amortizes the regulatory asset according to a plan approved by the
Florida Public Service Commission in 1997 but also has the option to
accelerate the amortization. In 2001, $97 million of accelerated
amortization was recorded on the Tiger Bay regulatory asset, of which
$63 million was associated with deferred revenue from 2000 and had no
impact on 2001 earnings. The remaining $34 million of accelerated
amortization did impact 2001 earnings. The balance of the regulatory
asset at December 31, 2001, was $95.3 million.
Florida Power electric operations include earnings of $24.0 million in
2001 compared to $21.9 million in 2000 related to energy marketing and
trading, which are managed on behalf of the utility by Progress
Ventures business unit. These amounts are also included in Progress
Ventures business unit's earnings.
Electric Utility Kilowatt Hour Sales by Class
------------------------------------------ -----------------------------------------
CP&L Sales Florida Power Sales
for the Year Ended December 31, 2001 for the Year Ended December 31, 2001
------------------------------------------ -----------------------------------------
Sales 2001 % Change Sales 2001 % Change
(in billions of kWh) from 2000 (in billions of kWh) from 2000
--------------------- -------- ----------- -------------------- -------- -----------
Residential 14.4 2.0% Residential 17.6 2.9%
--------------------- -------- ----------- -------------------- -------- -----------
Commercial 12.0 4.7% Commercial 11.1 2.3%
--------------------- -------- ----------- -------------------- -------- -----------
Industrial 13.3 (7.7)% Industrial 3.9 (8.9)%
--------------------- -------- ----------- -------------------- -------- -----------
Government 1.4 - Government 2.7 2.7%
--------------------- -------- ----------- -------------------- -------- -----------
Wholesale 13.0 (10.9)% Wholesale 4.7 (9.4)%
--------------------- -------- ----------- -------------------- -------- -----------
Total 54.1 (3.4)% Total 40.0 (0.2)%
--------------------- -------- ----------- -------------------- -------- -----------
NCNG
NCNG had gross margin of $78.0 million in 2001 and $76.5 million in
2000 and earnings of $2.5 million and $6.5 million for comparable
periods. The increase in margin was mainly attributable to the
Sandhills pipeline that was completed in March 2001 and was offset by
declines in industrial sales. The decrease in earnings was primarily
due to higher overall operating expenses. NCNG's 2001 results include
$5.9 million of goodwill amortization.
In January 2002, NCNG filed a notice of intent for a rate case with the
North Carolina Utilities Commission.
DIVERSIFIED BUSINESSES
Progress Ventures
The Progress Ventures business unit had net income of $288.7 million
for the year compared to $123.0 million in 2000. The increase in
earnings is primarily due to the inclusion of Florida Progress
subsidiaries in the current year. Progress Ventures business unit
manages marketing and trading operations on behalf of the utility
companies. Total synthetic fuel sales were 13.3 million tons for the
year compared to 8.2 million tons in 2000.
Progress Telecom
Progress Telecom, including CaroNet's operations, recorded revenues of
$62.9 million for the year compared to $45.2 million for 2000. Earnings
before interest, taxes, depreciation and amortization (EBITDA) in 2001
were $11.0 million compared to $8.3 million in 2000.
Progress Rail
Progress Rail reported revenues of $946.2 million and a net loss of
$13.9 million for the year, compared to revenues of $1.0 billion and a
net loss of $16.8 million in 2000. Progress Energy is focusing on
achieving profitability at Progress Rail in 2002 by realizing cost
savings from operational efficiencies.
SRS
SRS is engaged in software sales and energy services to help
industrial, commercial and institutional customers manage energy costs.
Progress Energy has decided to refocus the business on energy services
in the southeastern states and to consolidate remaining operations with
other retail activities. Due to the historical and current-year losses
at SRS and the decline of the market value for technology companies,
the company initiated a valuation study to help assess the
recoverability of its investment in SRS. Based on this assessment, the
company recorded an after-tax writedown and one-time charge of $45.6
million of SRS's assets, primarily goodwill, in 2001. This writedown
constitutes a significant reduction in the book value of these assets,
and the ongoing operations are expected to have a negligible impact on
Progress Energy's net income.
Interpath Investment
The predecessor company to Interpath was founded in 1994 and had
several lines of business in the technology sector. In 2000, the
company sold 65 percent of the Application Service Provider (ASP) line
to Bain Capital. While Interpath has performed well in executing its
ASP business plan, Progress Energy believes it is prudent to write down
its investment to reflect current valuations in the technology sector.
Based on this valuation, the company recorded an after-tax writedown
and one-time charge of $107.2 million of the Interpath investment in
2001. This writedown constitutes a significant reduction in the book
value of these assets, and the ongoing operations are expected to have
a negligible impact on Progress Energy's net income.
CORPORATE
Corporate results include interest expense on holding company debt and
goodwill amortization. The corporate charge was approximately $251
million for the year, including $89 million of goodwill amortization
associated with the Florida Progress acquisition, compared to a $35
million corporate charge in 2000, including goodwill of $7 million.
This increase is due to the inclusion of Florida Progress for the full
year 2001.
NON-OPERATING ADJUSTMENTS ASSOCIATED WITH SYNTHETIC FUELS
Intra-period Tax Allocation
With respect to the intra-period tax allocation effects, generally
accepted accounting principles require companies to apply an effective
tax rate to interim periods that is consistent with a company's
estimated annual tax rate. The tax credits generated from synthetic
fuel operations' earnings reduce Progress Energy's overall effective
tax rate. The company's synthetic fuel operations' earnings are not
subject to seasonal fluctuation to the same extent as the electric
utility operations' earnings are. The company projects the effective
tax rate for the year and then, based upon projected operating income
for each quarter, raises or lowers the credits recorded in that quarter
to reflect that projected tax rate. On the other hand, operating losses
incurred to produce the tax credit are included in the current quarter.
The resulting tax adjustment decreased earnings per share by $0.13 for
the quarter but had no impact on the company's annual earnings.
Contingent Value Obligation (CVO) Mark-to-Market
In connection with the acquisition of Florida Progress Corporation,
Progress Energy issued 98.6 million CVOs. Each CVO represents the right
to receive contingent payments based on production above certain levels
of the four synthetic fuel facilities purchased by subsidiaries of
Florida Progress Corporation in October 1999. The payments, if any, are
based on the net after-tax cash flows the facilities generate. The CVOs
are debt instruments and are valued at market value. Unrealized gains
and losses from changes in market value are recognized in earnings each
quarter. The CVO mark-to-market decreased earnings per share by $0.04
for the fourth quarter but had an immaterial impact on the annual
earnings. Since the company does not have any control over the market
price of the CVOs, it does not consider the mark-to-market adjustment a
component of ongoing earnings.
* * * *
Progress Energy (NYSE: PGN) is a Fortune 250 diversified holding company
headquartered in Raleigh, N.C., with more than 20,000 megawatts of generation
capacity and $8 billion in annual revenues. The company's diverse portfolio
includes two major electric utility companies, CP&L and Florida Power, as well
as NCNG, SRS, Progress Rail, Progress Telecom and an important new organization,
Progress Ventures, which was created to manage fuel extraction, manufacturing
and delivery; merchant generation; and energy marketing and trading. These
companies serve 2.9 million customers across the Southeast, providing
electricity, natural gas, energy services and broadband capacity.
Progress Energy, Inc.
Segment Earnings Variance Analysis
Fourth Quarter 2001 vs. 2000
Florida
($ per share) CP&L Power Progress Other Corporate Consolidated
(Electric) (Electric) Ventures Businesses
------ ------ ------ ------ ------ ------
2000 earnings (H) (0.08) 0.13 0.12 (0.07) (0.17) (0.07)
------ ------ ------ ------ ------ ------
Weather (0.18) (0.18)
Customer growth and usage 0.05 (A) 0.05
Other margin 0.01 0.01
Addition of FPC operations 0.08 0.07 0.06 0.21
Operating expenses (0.11) (E) 0.07 (0.04)
Depreciation 0.58 (F) 0.58
Interest charges 0.02 (0.13) (0.11)
Goodwill amortization (0.07) (0.07)
Diversified businesses 0.03 (0.03) (G) -
Impairment adjustments (0.72) (I) (0.72)
- -
CVO mark-to-market (0.09) (0.09)
Intraperiod tax adjustment (0.13) (0.13)
Share dilution 0.05 (B) (0.03) (B) (0.03) (B) 0.01 (B) 0.04 (B) 0.04 (B)
Eliminations/other 0.10 0.01 0.01 - (0.03) 0.09
- ---------------------------- ------ ------ ------ ------ ------ ------
2001 earnings 0.44 0.19 (C) 0.20 (D) (0.75) (0.51) (0.43)
------ ------ ------ ------ ------ ------
segment view:
------ ------ ------ ------ ------ ------
Total (D) 0.34 0.16 0.33 (0.75) (0.51) (0.43)
------ ------ ------ ------ ------ ------
Progress Ventures includes Electric Fuels (less Rail & Barge), Progress
Ventures, and Monroe Power
Other Businesses includes NCNG, SRS, Progress Telecom and Progress Rail
Corporate includes eliminations, interest expense, goodwill, CVO mark-to-market,
and intra-period tax allocations
(A) Residential and commercial increase of $.08, industrial decrease of $.03
(B) Related to issuance of 46.5 million common shares in connection with FPC
acquisition in Dec 2000, and issuance of 12.65 million shares in Aug 2001
(C) See Table 1 for a full quarter of Florida Power operations.
(D) Approximately $.10 per share in CP&L and $.03 per share in Florida Power
are related to functions managed by Progress Ventures in 2001.
(E) Primarily costs related to planned nuclear outages, increased transmission
expenses.
(F) Depreciation variance due to accelerated amortization on nuclear generating
assets.
(G) Includes sale of Bellsouth PCS assets in 2000
(H) Includes one month of FPC operations
(I) Impairment and one-time charges for SRS and Interpath of $152.8 million
Table 1
Florida Power
Segment Earnings Variance Analysis
Fourth Quarter 2001 vs. 2000
2000 earnings $ (0.32)
Merger adjustments- 2000 0.66
Weather (0.04)
Customer growth and usage -
Operating expenses (0.06)
Share dilution (0.10)
Interest expense 0.01
Eliminations/other 0.04
-------
2001 earnings $ 0.19
=======
Progress Energy, Inc.
Segment Earnings Variance Analysis
Year-to-Date December 2001 vs. 2000
Florida
($ per share) CP&L Power Progress Other Corporate Consolidated
(Electric) (Electric) Ventures Businesses
------ ------ ------ ------ ------ ------
2000 earnings (H) 2.38 0.13 0.24 0.54 (0.25) 3.04
------ ------ ------ ------ ------ ------
Weather (0.16) (0.16)
Customer growth and usage 0.03 (A) 0.03
Other margin 0.05 0.05
Addition of FPC operations 1.40 0.55 (0.11) 1.84
Operating expenses 0.12 (E) 0.12
Depreciation 0.52 (F) 0.52
Interest charges (0.06) (0.70) (0.76)
Goodwill amortization (0.38) (0.38)
Diversified businesses 0.24 (0.43) (G) (0.19)
Impairment adjustments (0.75) (I) (0.75)
-
CVO mark-to-market - -
Share dilution (0.55) (B) (0.03) (B) (0.06) (B) (0.13) (B) 0.07 (B) (0.70) (B)
Eliminations/other (0.05) 0.01 0.02 - 0.01 (0.01)
- --------------------------- ------ ------ ------ ------ ------ ------
2001 earnings 2.28 1.51 (C) 0.99 (0.88) (1.25) 2.65
------ ------ ------ ------ ------ ------
segment view:
------ ------ ------ ------ ------ ------
Total (D) 1.98 1.39 1.41 (0.88) (1.25) 2.65
------ ------ ------ ------ ------ ------
Progress Ventures includes Electric Fuels (less Rail & Barge), Progress
Ventures, Monroe Power
Other Businesses includes NCNG, SRS, Progress Telecom and Progress Rail
Corporate includes eliminations, interest expense, goodwill, CVO mark-to-market,
and intra-period tax allocations
(A) Residential and commercial increase $.14, offset by industrial decrease of
$.11.
(B) Related to issuance of 46.5 million common shares in connection with FPC
acquisition in Dec 2000, and issuance of 12.65 million shares in Aug 2001
(C) See Table 1 for a full year of Florida Power operations
(D) Approximately $.30 per share in CP&L and $.12 per share in Florida Power
related to functions managed by Progress Ventures in 2001.
(E) Reduction related to cost control efforts, $.04 related to Jan 2000 ice
storm, offset by planned nuclear outage costs, and transmission expenses in
2001.
(F) Depreciation variance due to accelerated amortization on nuclear generating
assets.
(G) Includes sale of BellSouth PCS assets in 2000
(H) Includes one month of FPC operations
(I) Impairment and one-time charges for SRS and Interpath of $152.8 million
Table 1
Florida Power
Segment Earnings Variance Analysis
December 2001 vs 2000
YTD
2000 earnings $ 1.34
Merger adjustments - 2000 0.71
Weather (0.07)
Customer growth and usage 0.09
Operating expenses (0.05)
Share dilution (0.58)
Interest expense 0.03
Eliminations/other 0.04
-------
2001 earnings $ 1.51
=======
PROGRESS ENERGY, INC.
UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION
STATEMENTS OF INCOME
Three Months Ended Year Ended
December 31 December 31
(In thousands except per share amounts) 2001 2000 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------
Operating Revenues
Electric $ 1,478,633 $ 1,061,155 $ 6,556,561 $ 3,549,821
Natural gas 62,565 101,406 321,385 324,499
Diversified businesses 365,981 95,760 1,583,513 229,093
- ---------------------------------------------------------------------------------------------------------------------------
Total Operating Revenues 1,907,179 1,258,321 8,461,459 4,103,413
Operating Expenses
Fuel used in electric generation 365,544 214,276 1,559,998 686,754
Purchased power 169,861 111,478 868,078 364,977
Gas purchased for resale 40,391 84,431 243,451 250,902
Other operation and maintenance 356,687 290,421 1,246,835 823,549
Depreciation and amortization 240,785 342,843 1,090,178 754,747
Taxes other than on income 85,107 52,664 383,824 165,393
Impairment of assets 44,800 - 44,800 -
Diversified businesses 407,680 145,618 1,780,520 353,169
- ---------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1,710,855 1,241,731 7,217,684 3,399,491
- ---------------------------------------------------------------------------------------------------------------------------
Operating Income 196,324 16,590 1,243,775 703,922
- ---------------------------------------------------------------------------------------------------------------------------
Other Income (Expense)
Interest income 2,074 18,987 22,206 26,984
Impairment of investments (164,183) - (164,183) -
Gain on sale of assets - - - 200,000
Other, net (33,563) 8,578 (27,018) 12,514
- ---------------------------------------------------------------------------------------------------------------------------
Total Other Income (Expense) (195,672) 27,565 (168,995) 239,498
- ---------------------------------------------------------------------------------------------------------------------------
Income before Interest Charges and Income Taxes 652 44,155 1,074,780 943,420
- ---------------------------------------------------------------------------------------------------------------------------
Interest Charges
Long-term debt 157,466 81,868 592,477 237,494
Other interest charges 20,641 31,732 110,355 46,105
Allowance for borrowed funds used during construction (8,459) (5,656) (18,019) (21,314)
- ---------------------------------------------------------------------------------------------------------------------------
Net Interest Charges 169,648 107,944 684,813 262,285
- ---------------------------------------------------------------------------------------------------------------------------
Income before Income Taxes (168,996) (63,789) 389,967 681,135
Income Taxes (78,456) (52,350) (151,643) 202,774
- ---------------------------------------------------------------------------------------------------------------------------
Net Income $ (90,540) $ (11,439) 541,610 478,361
===========================================================================================================================
Average Common Shares Outstanding 212,866 168,899 204,683 157,169
Basic Earnings per Common Share $ (0.43) $ (0.07) $ 2.65 $ 3.04
Diluted Earnings per Common Share $ (0.42) $ (0.07) $ 2.64 $ 3.03
Dividends Declared per Common Share $ 0.545 $ 0.530 $ 2.135 $ 2.075
===========================================================================================================================
This financial information should be read in conjunction with the Company's
2000 Annual Report to shareholders. These statements have been prepared for the
purpose of providing information concerning the Company and not in connection
with any sale, offer for sale, or solicitation of an offer to buy any
securities.
Progress Energy, Inc.
BALANCE SHEETS December 31 December 31
(In thousands) 2001 2000
- ------------------------------------------------------------------------------------------------------
ASSETS
Utility Plant
Electric utility plant in service $ 19,176,021 $ 18,124,036
Gas utility plant in service 491,903 378,464
Accumulated depreciation (10,096,412) (9,350,172)
- ------------------------------------------------------------------------------------------------------
Utility plant in service, net 9,571,512 9,152,328
Held for future use 15,380 16,302
Construction work in progress 1,065,154 1,043,376
Nuclear fuel, net of amortization 262,869 224,692
- ------------------------------------------------------------------------------------------------------
Total Utility Plant, Net 10,914,915 10,436,698
- ------------------------------------------------------------------------------------------------------
Current Assets
Cash and cash equivalents 54,419 101,296
Accounts receivable 984,461 925,911
Taxes receivable 32,325 -
Inventory 886,747 420,985
Deferred fuel cost 146,652 217,806
Prepayments 36,150 50,040
Assets Held for Sale, net - 747,745
Other current assets 226,948 192,347
- ------------------------------------------------------------------------------------------------------
Total Current Assets 2,367,702 2,656,130
- ------------------------------------------------------------------------------------------------------
Deferred Debits and Other Assets
Income taxes recoverable through future rates 234,180 228,686
Harris Plant deferred costs 32,475 44,813
Unamortized debt expense 46,910 38,771
Nuclear decommissioning trust funds 822,821 811,998
Diversified business property, net 1,073,046 720,231
Miscellaneous other property and investments 456,880 636,677
Deferred purchased power contract termination costs 95,326 226,656
Goodwill, net 3,705,610 3,652,429
Other assets and deferred debits 1,019,334 657,612
- ------------------------------------------------------------------------------------------------------
Total Deferred Debits and Other Assets 7,486,582 7,017,873
- ------------------------------------------------------------------------------------------------------
Total Assets $ 20,769,199 $ 20,110,701
======================================================================================================
CAPITALIZATION AND LIABILITIES
Capitalization
Common stock equity $ 6,003,533 $ 5,424,201
Preferred stock of subsidiary - redemption not required 92,831 92,831
Long-term debt, net 9,591,915 5,890,099
- ------------------------------------------------------------------------------------------------------
Total Capitalization 15,688,279 11,407,131
- ------------------------------------------------------------------------------------------------------
Current Liabilities
Current portion of long-term debt 713,864 184,037
Accounts payable 749,614 828,568
Taxes accrued - 932
Interest accrued 212,387 121,433
Dividends declared 117,857 107,645
Short-term Obligations 77,529 3,972,674
Other current liabilities 560,053 447,370
- ------------------------------------------------------------------------------------------------------
Total Current Liabilities 2,431,304 5,662,659
- ------------------------------------------------------------------------------------------------------
Deferred Credits and Other Liabilities
Accumulated deferred income taxes 1,424,206 1,807,192
Accumulated deferred investment tax credits 226,382 261,255
Other liabilities and deferred credits 999,028 972,464
- ------------------------------------------------------------------------------------------------------
Total Deferred Credits and Other Liabilities 2,649,616 3,040,911
- ------------------------------------------------------------------------------------------------------
Total Capitalization and Liabilities $ 20,769,199 $ 20,110,701
======================================================================================================
SCHEDULES OF COMMON STOCK EQUITY
(In thousands)
Common stock (without par value, authorized 500,000,000, issued $ 4,107,493 $ 3,608,902
and outstanding 218,725,352 and 206,089,047 shares, respectively)
Unearned ESOP common stock (114,385) (127,211)
Accumulated other comprehensive loss (32,180) -
Retained earnings 2,042,605 1,942,510
- ------------------------------------------------------------------------------------------------------
Total Common Stock Equity $ 6,003,533 $ 5,424,201
======================================================================================================
Progress Energy, Inc.
SUPPLEMENTAL DATA Three Months Ended Year Ended
December 31 December 31
2001 2000 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------------
Operating Revenues (in thousands)
Electric
Retail $ 1,247,304 $ 808,847 $ 5,461,469 $ 2,799,422
Wholesale 192,191 234,527 921,799 664,847
Unbilled 99 54,540 (54,173) 69,156
Miscellaneous revenue 39,039 (36,759) 227,466 16,396
- ---------------------------------------------------------------------------------------------------------------------------------
Total Electric 1,478,633 1,061,155 6,556,561 3,549,821
Natural gas 62,565 101,406 321,385 324,499
Diversified businesses 365,981 95,760 1,583,513 229,093
- ---------------------------------------------------------------------------------------------------------------------------------
Total Operating Revenues $ 1,907,179 $ 1,258,321 $ 8,461,459 $ 4,103,413
=================================================================================================================================
Energy Sales
Electric (millions of kWh)
Retail
Residential 6,666 4,490 31,976 15,365
Commercial 5,480 3,509 23,033 12,221
Industrial 4,137 3,793 17,204 14,762
Other retail 1,014 547 4,149 1,626
- ---------------------------------------------------------------------------------------------------------------------------------
Total Retail 17,297 12,339 76,362 43,974
Unbilled (152) 1,108 (1,045) 1,098
Wholesale 3,769 4,439 17,714 15,012
- ---------------------------------------------------------------------------------------------------------------------------------
Total Electric 20,914 17,886 93,031 60,084
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Natural Gas (thousands of dt) 13,420 14,065 52,442 57,026
=================================================================================================================================
Energy Supply (millions of kWh)
Generated - steam 11,489 9,113 48,732 31,132
nuclear 5,797 6,784 27,301 23,857
hydro 46 38 245 441
combustion turbines 1,373 713 6,644 1,337
Purchased 3,141 1,946 14,469 5,724
- ---------------------------------------------------------------------------------------------------------------------------------
Total Energy Supply (Company Share) 21,846 18,594 97,391 62,491
=================================================================================================================================
Detail of Income Taxes (in thousands)
Income tax expense (credit) - current $ 84,215 $ (56,182) $ 108,494 $ 281,500
deferred (158,276) 1,296 (237,263) (73,465)
investment tax credit (4,395) 2,536 (22,874) (5,261)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income Tax Expense $ (78,456) $ (52,350) $ (151,643) $ 202,774
=================================================================================================================================
FINANCIAL STATISTICS
Ratio of earnings to fixed charges 1.52 3.27
Return on average common stock equity 9.41 % 13.04 %
Book value per common share $ 28.20 $ 27.17
Capitalization ratios
Common stock equity 38.27 % 47.55 %
Preferred stock of subsidiary- redemption not required 0.59 0.81
Long-term debt, net 61.14 51.64
- ---------------------------------------------------------------------------------------------------------------------------------
Total 100.00 % 100.00 %
=================================================================================================================================
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PROGRESS ENERGY, INC.
Registrant
By: /s/ Peter M. Scott III
------------------------
Peter M. Scott III
Executive Vice President and
Chief Financial Officer
Date: February 6, 2002