Financial Information by Business Segment

6 Months Ended

Jun. 30, 2012

Financial Information By Business Segment Disclosure [Abstract]

Financial Information by Business Segment

12.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 millions)			PEC		PEF	Corporate and Other		Eliminations			Totals
At and for the three months ended June 30, 2012
Revenues
	Unaffiliated	$	1,082	$	1,189	$	2	$	0	$	2,273
	Intersegment		0		0		72		(72)		0
	Total revenues		1,082		1,189		74		(72)		2,273
Ongoing Earnings			42		85		(47)		0		80
Total Assets			16,957		14,657		20,668		(16,558)		35,724
For the three months ended June 30, 2011
Revenues
	Unaffiliated	$	1,060	$	1,193	$	3	$	0	$	2,256
	Intersegment		0		0		60		(60)		0
	Total revenues		1,060		1,193		63		(60)		2,256
Ongoing Earnings			112		141		(42)		0		211
For the six months ended June 30, 2012
Revenues
	Unaffiliated	$	2,167	$	2,193	$	5	$	0	$	4,365
	Intersegment		0		1		130		(131)		0
	Total revenues		2,167		2,194		135		(131)		4,365
Ongoing Earnings			103		214		(94)		0		223
For the six months ended June 30, 2011
Revenues
	Unaffiliated	$	2,193	$	2,224	$	6	$	0	$	4,423
	Intersegment		0		1		134		(135)		0
	Total revenues		2,193		2,225		140		(135)		4,423
Ongoing Earnings			251		252		(90)		0		413

Management uses the non-GAAP financial measure “Ongoing Earnings” as a performance measure to evaluate the results of our segments and operations. Ongoing Earnings is computed as GAAP net income attributable to controlling interests less discontinued operations and the effects of certain identified gains and charges, which are considered Ongoing Earnings adjustments. Some of the excluded gains and charges have occurred in more than one reporting period but are not considered representative of fundamental core earnings.Management has identified the following Ongoing Earnings adjustments: tax levelization, whichincreases or decreases the tax expense recorded in the reporting period to reflect the annual projected tax rate, because it has no impact on annual earnings; CVO mark-to-market adjustments because we are unable to predict changes in their fair value; and CR3 indemnification charge (and subsequent adjustments, if any)for estimated future years' joint owner replacement power costs (through the expiration of the indemnification provisions of the joint owner agreement) because GAAP requires that the charge be accounted for in the period in which it becomes probable and estimable rather than the periods to which it relates. Additionally, management does not considermerger and integration costs,and operating results of discontinued operations to be representative of our ongoing operations and excluded these items in computing Ongoing Earnings.

Reconciliations of consolidated Ongoing Earnings to net income attributable to controlling interests follow:

		For the three months ended June 30
(in millions)			2012		2011
Ongoing Earnings		$	80	$	211
Tax levelization			(5)		(4)
CVO mark-to-market			0		4
Merger and integration costs, net of tax benefit of $6 and $4 (Note 2)			(13)		(7)
CR3 indemnification adjustment (charge), net of tax (expense) benefit of $(3) and $18			5		(26)
Continuing income attributable to noncontrolling interests, net of tax			1		2
Income from continuing operations			68		180
Discontinued operations, net of tax			(4)		(2)
Net income attributable to noncontrolling interests, net of tax			(1)		(2)
	Net income attributable to controlling interests	$	63	$	176
		For the six months ended June 30
(in millions)			2012		2011
Ongoing Earnings		$	223	$	413
Tax levelization			(12)		(6)
CVO mark-to-market			8		4
Merger and integration costs, net of tax benefit of $8 and $4 (Note 2)			(18)		(21)
CR3 indemnification adjustment (charge), net of tax (expense) benefit of $(3) and $18			5		(26)
Continuing income attributable to noncontrolling interests, net of tax			3		3
Income from continuing operations			209		367
Discontinued operations, net of tax			7		(4)
Net income attributable to noncontrolling interests, net of tax			(3)		(3)
	Net income attributable to controlling interests	$	213	$	360