The Palmetto state and Tarheels both have Duke Energy Progress on their minds when they need some power. The company, which operates as Progress Energy Carolinas, transmits and distributes electricity to some 1.5 million homes and businesses in the Carolinas. The utility generates almost 12,600 MW of capacity from its fossil-fueled, nuclear, and hydroelectric power plants. Progress Energy Carolinas purchases about 5% of the power it distributes. The Duke Energy subsidiary also sells power to wholesale customers, primarily other utilities and energy marketers, including North Carolina Eastern Municipal Power Agency and North Carolina Electric Membership Corporation.
Progress Energy Carolinas' 34,000 sq. ml. service territory includes the coastal plain of North Carolina (from the Piedmont to the Atlantic coast), the lower Piedmont section of North Carolina, western North Carolina (Asheville and its surrounding area) and a northeastern segment of South Carolina.
The company operates business segment, Franchised Electric, which generates, transmits, distributes, and sells electricity.
Progress Energy Carolinas' revenues increased by 4% in 2012 due to Joint Dispatch Agreement revenues from Duke Energy Carolinas, the impact of an amended capacity contract with a major wholesale customer that began in May 2012, and a new wholesale contract that began in July 2012. Other factors included an increase in fuel revenues driven primarily by Interim FERC Mitigation wholesale fuel revenues and higher fuel rates, and a growth in clause-recoverable regulatory revenues, primarily due to increased spending on new and existing Demand Side Management programs.
Net income increased by 47% in 2012 thanks to higher revenues and a jump in the volume of fuel used in electric generation and purchased power primarily due to the impact of higher rates; higher weather-adjusted volumes and increased purchased power, which was driven by favorable gas prices and nuclear plant outages; and a more favorable generation mix, which was driven by nuclear plant outages. This was offset by an increase in operation and maintenance expenses primarily due to higher nuclear plant outage costs, higher costs to achieve the merger with Duke Energy and the prior year non-capital portion of a favorable judgment from spent fuel litigation. It also saw an increase in impairment charges primarily due to the disallowance of transmission project costs, which are a portion of the FERC Mitigation charges included in the costs to achieve the merger with Duke Energy.
Expanding its assets, in 2012, Duke Energy acquired Progress Energy. (which is engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida). As a result of the purchase, Carolina Power & Light became subsidiary of Duke Energy and changed its legal name to Duke Energy Progress.
Progress Energy Carolinas has invested $1.7 billion through 2012 in three major generation fleet modernization projects with 2,140 MW of capacity. In 2012 it placed in service the second of these projects, the 920 MW Lee combined cycle natural gas-fired generation facility, and continued to build the 625 MW combined cycle natural gas-fired generation Sutton facility, which is scheduled to be placed in service in 2013.
The company is a subsidiary of Duke Energy.