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An exceptionally cold winter in the Carolinas and Florida helped to heat up Progress Energy’s first-quarter earnings, the Raleigh-based utility operator said Wednesday.

Progress (NYSE: PGN), which provides power to customers in North Carolina, South Carolina and Florida, reported net income under Generally Accepted Accounting Principles of $190 million, or 67 cents per share, up from the $182 million, or 66 cents per share, that the company earned in the first quarter of 2009.

The first-quarter profit gain would have been larger if not for a charge of 8 cents per share related to the recently passed health reform law, which reduces the tax benefit granted to companies that provide prescription drug coverage for seniors who otherwise would be covered by Medicare Part D.

Factoring out one-time items, Progress reported ongoing earnings of $213 million, or 75 cents per share. There was no difference between the ongoing and GAAP earnings for the first quarter of 2009.

Analysts polled by Thomson Reuters had forecast, on average, that Progress would earn 66 cents per share. Thomson Reuters predictions usually factor out one-time items.

Progress’ first-quarter revenue rose to $2.54 billion, up from $2.4 billion in the year-ago quarter and in line with the Thomson Reuters consensus analysts estimate.

The main driver in the increased revenue was unusually cold weather in the service areas of Progress Energy Carolinas and Progress Energy Florida, the two utilities owned by Progress Energy. Progress Energy Carolinas attributed an earnings boost of 6 cents per share to higher demand for heat during the three months ended March 31, while Progress Energy Florida saw a heating-related revenue jump equivalent to 8 cents per share.

Progress Energy Florida also received a benefit of 7 cents per share from the reopening of its Bartow power plant with higher rates.

Customer growth produced a gain of 2 cents per share in each of the two Progress Energy territories.

"We performed well in the first quarter, and met the high demands of a very cold winter in the Carolinas and Florida," said Bill Johnson, chairman, president and CEO of Progress Energy.

Progress reaffirmed its 2010 ongoing earnings estimate of between $2.85 and $3.15 per share, in line with analysts’ estimates.

"We are optimistic about the long-term prospects for our service territories and the value we will create for our customers and shareholders,” Johnson said. “We remain focused on managing effectively through these challenging times while working constructively with policymakers and regulators to prepare responsibly for the future."

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