PROGRESS ENERGY INC

What Do They Do?

Generates, transmits, distributes and sells electricity to retail customers and wholesale buyers through its regulated utility operations.

How Do They Make Money?

Retail and wholesale customers pay for electricity delivered under regulated tariffs or wholesale contracts. Bills generally come monthly, with payment due within 30 days.

Year to Dec 2011 revenue by reportable segment revenue

Segment	Share	How money arrives
PEC Usage-based	51%	Usage-based
PEF Usage-based	49%	Usage-based
Corporate and Other	3.2%
Eliminations	−3.1%

Who Are Their Customers?

Retail customers receive electric service through utility tariffs; wholesale buyers include municipalities, electric cooperatives and other load-serving entities, served under contracts.

Do Revenues Turn Into Profits?

Yes. It kept 6 cents of every revenue dollar as net income in Year to Dec 2011, but spent more cash than it brought in: free cash flow was −$451M.

Operating income, Year to Dec 2011

18% of revenue

▼ −23% vs Year to Dec 2010 ($2.1B, 20%)

Net income, Year to Dec 2011

6% of revenue

▼ −33% vs Year to Dec 2010 ($856M, 8%)

Free cash flow, Year to Dec 2011

−5% of revenue

▼ Now a loss vs Year to Dec 2010 ($316M, 3%)

How Are They Changing?

Since the latest annual report

Mar 3, 2026 Investor completed the first closing for a Florida Progress investment The agreement provides the investor with limited governance rights and an eventual anticipated ownership interest.

Flat. Revenue was $8.9B in Year to Dec 2011, about the same as the $9.2B of Year to Dec 2008.

Revenue over time

PEC PEF Corporate and Other Eliminations

$20B$10B$0

Year to Dec 2009 Year to Dec 2010 Year to Dec 2011

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