-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Njch9V1ru6EVYrdEBAtEFuIymsqbls5YBb6f8klUmUvoXk8f59+K+e3jZu3H/6B5 HHeRLm3kUZ6LXKjQ0l3CxA== 0001021408-02-009792.txt : 20020725 0001021408-02-009792.hdr.sgml : 20020725 20020725081008 ACCESSION NUMBER: 0001021408-02-009792 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020724 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03382 FILM NUMBER: 02710304 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 8-K 1 d8k.txt FORM 8-K As filed with the Securities and Exchange Commission on July 25, 2002 UNITED STATES 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): July 24, 2002 Commission File Exact name of registrant as specified in its charter, state I.R.S. Employer Number of incorporation, address of principal executive offices, and Identification Number telephone number 1-3382 Carolina Power & Light Company 56-0165465 410 South 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. Forward-Looking Statements We have included in this Form 8-K information containing "forward-looking statements," as defined by the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "projection" or "outlook") are not statements of historical facts and may be forward-looking. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. Forward-looking statements speak only as of the date on which they are made; and, except to fulfill our obligations under the U.S. securities laws, we undertake no obligation to update any such statements to reflect events or circumstances after the date on which they are made. Examples of factors that can affect our expectations, beliefs, plans, goals, objectives and future events or performance include, but are not limited to, the following: . governmental policies and regulatory actions (including those of the Federal Energy Regulatory Commission, the Environmental Protection Agency, the Nuclear Regulatory Commission, the Department of Energy, the North Carolina Utilities Commission and the Public Service Commission of South Carolina), particularly legislative and regulatory initiatives regarding the restructuring of the electricity industry or potential national deregulation legislation; . risks associated with operating nuclear power facilities, availability of nuclear waste storage facilities, and nuclear decommissioning costs; . terrorist threats and activities, particularly with respect to our facilities, economic uncertainty caused by recent terrorist attacks on the United States, and potential adverse reactions to U.S. anti-terrorism activities; . changes in the economy of areas we serve; . the extent to which we are able to obtain adequate and timely rate recovery of costs, including potential stranded costs arising from the restructuring of the electricity industry; . weather conditions and catastrophic weather-related damage; . general industry trends, increased competition from energy and gas suppliers, and market demand for energy; . inflation and capital market conditions; and . unanticipated changes in operating expenses and capital expenditures. All such factors are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond our control. New factors emerge from time to time, and it is not possible for us to predict all of such factors or to assess the effect of each such factor on our business. ITEM 5. OTHER EVENTS The purpose of this Form 8-K is to make publicly available certain information relating to (i) our financial performance as of and for the three and six months ended June 30, 2002 and (ii) recent developments. Attached hereto as Exhibit 99 are our Unaudited Interim Consolidated Statements of Income for the three and six months ended June 30, 2002 and 2001 and the Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001. Second Quarter Earnings On July 24, 2002, we reported earnings of $130.4 million for the second quarter of 2002 and $214.8 million for the first half of 2002 compared to $84.1 million for the second quarter of 2001 and $204.3 million for the first half of 2001. Our financial highlights for the second quarter of 2002 include: . Second quarter revenues of $838.1 million, $54.7 million higher than the comparable period in 2001. Revenue and margin improvements were primarily related to improvements in retail growth and usage as well as favorable weather conditions. However, industrial sales slipped from comparable 2001 levels because of the weak economic environment. . Operation and Maintenance costs over the second quarter were up 7% for the comparable period in 2001 due to increased infrastructure costs (primarily information systems costs) and higher employee benefits (driven by increased health insurance costs). . Interest charges were $9.1 million lower than second quarter 2001 because of lower debt balances and favorable interest rates. . In June 2002 we received a $28.3 million favorable impact from a tax reallocation from our corporate parent, Progress Energy, Inc. This reallocation resulted from an Securities and Exchange Commission ruling that requires the allocation of non-acquisition interest tax benefit for 2000 through year-to-date 2002 to be allocated to the profitable subsidiaries. Our Unaudited Interim Consolidated Statements of Income for the three and six months ended June 30, 2002 and 2001 are not necessarily indicative of the results that may be expected for an entire year. Telecommunications Assets and Related Valuation Study The fiber-optic telecommunications operations of our subsidiary, Caronet, Inc., are included in our consolidated results of operations. For the quarter ended June 30, 2002, Caronet earned $0.3 million based on revenue of $4.6 million. In the second quarter of 2001, Caronet earned $1.7 million based on revenues of $4.8 million. Caronet's revenue reduction is related to the general slow down in the telecommunications industry. Due to this industry decline, Progress Energy has initiated a valuation study to assess the recoverability of Caronet's long-lived assets, which totaled $111.3 million at June 30, 2002. We expect to conclude this review during the third quarter of 2002. North Carolina Clean Air Legislation On June 20, 2002, North Carolina enacted a law that requires investor-owned utilities to make significant reductions in sulfur dioxide and nitrogen oxide emissions beginning in 2007. Under this new law, our coal-fired generating plants located in North Carolina must reduce yearly system-wide emissions of sulfur dioxide by 76% and emissions of nitrogen oxides by 62% from 2000 levels by 2013. We are also required to provide for testing, monitoring, record keeping, and reporting for compliance purposes. The new law freezes our base electric rates for five years and provides, over a seven-year period beginning January 1, 2003, for accelerated cost recovery of the $813 million in capital expenses that we estimate will be necessary to comply with the new standards. This law allows us to recover actual compliance costs as part of any rate adjustment that is effective in 2008 or later. Pursuant to the new law, Progress Energy has entered into an agreement with the state of North Carolina to sell to the state all emissions allowances we generate from over-complying with the new emission limits. The new law also requires the state to undertake a study of mercury and carbon dioxide emissions in North Carolina. We cannot predict the future regulatory interpretation, implementation or the impact of this new law. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) EXHIBITS. - -------------------------------------------------------------------------------- Exhibit 99- Unaudited Interim Consolidated Statements of Income for the three and six months ended June 30, 2002 and 2001 and the Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001. - -------------------------------------------------------------------------------- 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. CAROLINA POWER & LIGHT COMPANY Registrant By: /s/ Peter M. Scott III ------------------------- Peter M. Scott III Executive Vice President and Chief Financial Officer Date: July 25, 2002 EXHIBIT INDEX - -------------------------------------------------------------------------------- Exhibit 99- Unaudited Consolidated Interim Statements of Income for the three and six months ended June 30, 2002 and 2001 and the Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001. - -------------------------------------------------------------------------------- EX-99 3 dex99.txt UNAUDITED INTERIM FINANCIALS Exhibit 99 CAROLINA POWER & LIGHT COMPANY CONSOLIDATED INTERIM FINANCIAL STATEMENTS June 30, 2002
STATEMENTS OF INCOME Three Months Ended Six Months Ended (Unaudited) June 30, June 30, (In thousands) 2002 2001 2002 2001 - -------------------------------------------------------------------------------------- Operating Revenues Electric $834,658 $782,287 $1,646,139 $1,603,861 Diversified businesses 3,434 1,092 6,823 6,121 - -------------------------------------------------------------------------------------- Total Operating Revenues 838,092 783,379 1,652,962 1,609,982 - -------------------------------------------------------------------------------------- Operating Expenses Fuel used in electric generation 173,120 157,672 347,023 311,141 Purchased power 90,918 85,273 164,228 177,202 Other operation and maintenance 191,744 179,434 383,004 348,088 Depreciation and amortization 133,459 139,831 274,844 277,792 Taxes other than on income 36,075 35,822 74,843 74,259 Diversified businesses 2,754 957 5,815 5,470 - -------------------------------------------------------------------------------------- Total Operating Expenses 628,070 598,989 1,249,757 1,193,952 - -------------------------------------------------------------------------------------- Operating Income 210,022 184,390 403,205 416,030 - -------------------------------------------------------------------------------------- Other Income (Expense) Interest income 3,202 6,340 4,868 11,025 Other, net 4,653 2,536 1,680 11,921 - -------------------------------------------------------------------------------------- Total Other Income (Expense) 7,855 8,876 6,548 22,946 - -------------------------------------------------------------------------------------- Interest Charges Gross interest charges 56,255 65,326 117,899 130,180 Allowance for borrowed funds used during construction (2,779) (1,576) (5,873) (4,349) - -------------------------------------------------------------------------------------- Total Interest Charges, Net 53,476 63,750 112,026 125,831 - -------------------------------------------------------------------------------------- Income before Income Taxes 164,401 129,516 297,727 313,145 Income Taxes 33,248 44,637 81,456 107,393 - -------------------------------------------------------------------------------------- Net Income 131,153 84,879 216,271 205,752 Preferred Stock Dividend Requirements (741) (741) (1,482) (1,482) - -------------------------------------------------------------------------------------- Earnings for Common Stock $130,412 $ 84,138 $ 214,789 $ 204,270 ======================================================================================
Carolina Power & Light Company CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 30, December 31, Assets 2002 2001 - ------------------------------------------------------------------------------------ Utility Plant Electric utility plant in service $ 12,054,025 $ 12,024,291 Accumulated depreciation (6,182,956) (5,952,206) - ------------------------------------------------------------------------------------ Utility plant in service, net 5,871,069 6,072,085 Held for future use 7,105 7,105 Construction work in progress 698,156 711,129 Nuclear fuel, net of amortization 172,890 200,332 - ------------------------------------------------------------------------------------ Total Utility Plant, Net 6,749,220 6,990,651 - ------------------------------------------------------------------------------------ Current Assets Cash and cash equivalents 11,030 21,250 Accounts receivable 324,860 317,714 Unbilled accounts receivable 150,901 136,514 Receivables from affiliated companies 67,503 27,180 Taxes receivable - 17,543 Inventory 358,763 365,501 Deferred fuel cost 118,748 131,505 Prepayments 28,011 11,863 Other current assets 64,960 66,193 - ------------------------------------------------------------------------------------ Total Current Assets 1,124,776 1,095,263 - ------------------------------------------------------------------------------------ Deferred Debits and Other Assets Regulatory assets 263,493 277,550 Nuclear decommissioning trust funds 429,676 416,721 Diversified business property, net 118,630 111,802 Miscellaneous other property and investments 242,807 231,325 Other assets and deferred debits 117,035 135,373 - ------------------------------------------------------------------------------------ Total Deferred Debits and Other Assets 1,171,641 1,172,771 - ------------------------------------------------------------------------------------ Total Assets $ 9,045,637 $ 9,258,685 ==================================================================================== Capitalization and Liabilities - ------------------------------------------------------------------------------------ Capitalization Common stock $ 1,921,068 $ 1,904,246 Unearned ESOP common stock (104,703) (114,385) Retained earnings 1,336,831 1,312,641 Accumulated other comprehensive loss (5,156) (7,046) - ------------------------------------------------------------------------------------ Total common stock equity 3,148,040 3,095,456 Preferred stock - not subject to mandatory redemption 59,334 59,334 Long-term debt, net 2,752,181 2,958,853 - ------------------------------------------------------------------------------------ Total Capitalization 5,959,555 6,113,643 - ------------------------------------------------------------------------------------ Current Liabilities Current portion of long-term debt 600,000 600,000 Accounts payable 194,039 300,829 Payables to affiliated companies 151,176 106,114 Notes payable affiliated companies 11,539 47,913 Taxes accrued 82,013 - Interest accrued 65,314 61,124 Other current liabilities 156,702 208,645 - ------------------------------------------------------------------------------------ Total Current Liabilities 1,260,783 1,324,625 - ------------------------------------------------------------------------------------ Deferred Credits and Other Liabilities Accumulated deferred income taxes 1,304,892 1,316,823 Accumulated deferred investment tax credits 164,062 170,302 Regulatory liabilities 7,774 7,494 Other liabilities and deferred credits 348,571 325,798 - ------------------------------------------------------------------------------------ Total Deferred Credits and Other Liabilities 1,825,299 1,820,417 - ------------------------------------------------------------------------------------ Commitments and Contingencies - ------------------------------------------------------------------------------------ Total Capitalization and Liabilities $ 9,045,637 $ 9,258,685 ====================================================================================
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