**Exhibit      No. 12 (b)**

**CAROLINA      POWER & LIGHT COMPANY**

**d/b/a      PROGRESS ENERGY CAROLINAS, INC.**

|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------|--------|----------|----------|--------|--------|--------|--------|--------|--------|--------|--------|
| (dollars                in millions)                                                              |   | **2006** |     | 2005   |   | 2004   |   | 2003   |   | 2002   |   |
| Earnings,                as defined:                                                              |   |     |     |   |   |   |   |   |   |   |   |
| Income                before cumulative effect of changes in accounting                principles |   | **$**    | **457**  |   | $      | 493    |   | $      | 461    |   | $      | 504 |   | $ | 431 |   |
| Fixed                charges, as below                                                            |   |     | **225**  |   |   | 205    |   |   | 201    |   |   | 206 |   |   | 224 |   |
| Income                taxes, as below                                                             |   |     | **260**  |   |   | 234    |   |   | 234    |   |   | 233 |   |   | 199 |   |
| Total                earnings, as defined                                                         |   | **$**    | **942**  |   | $      | 932    |   | $      | 896    |   | $      | 943 |   | $ | 854 |   |
|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed                Charges, as defined:                                                         |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                on long-term debt                                                         |   | **$**    | **218**  |   | $      | 191    |   | $      | 183    |   | $      | 188 |   | $ | 205 |   |
| Other                interest                                                                     |   |     | **(1**   | **)**  |   | 6      |   |   | 11     |   |   | 11 |   |   | 12 |   |
| Imputed                interest factor in rentals - charged                                       |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| principally                to operating expenses                                                  |   |     | **8**    |   |   | 8      |   |   | 7      |   |   | 7 |   |   | 7 |   |
| Total                fixed charges, as defined                                                    |   |     | **225**  |   |   | 205    |   |   | 201    |   |   | 206 |   |   | 224 |   |
| Preferred                dividends, as defined                                                    |   |     | **5**    |   |   | 4      |   |   | 5      |   |   | 4 |   |   | 4 |   |
| Total                fixed charges and preferred dividends combined                               |   | **$**    | **230**  |   | $      | 209    |   | $      | 206    |   | $      | 210 |   | $ | 228 |   |
|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                Taxes:                                                                      |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                                                 |   | **$**    | **265**  |   | $      | 239    |   | $      | 239    |   | $      | 241 |   | $ | 207 |   |
| Included                in AFUDC - deferred taxes in                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| book                depreciation                                                                  |   |     | **(5**   | **)**  |   | (5     | )      |   | (5     | )      |   | (8 | ) |   | (8 | ) |
| Total                income taxes                                                                 |   | **$**    | **260**  |   | $      | 234    |   | $      | 234    |   | $      | 233 |   | $ | 199 |   |
|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of Earnings to Fixed Charges                                                 |   |     | **4.19** |   |   | 4.55   |   |   | 4.45   |   |   | 4.59 |   |   | 3.81 |   |
|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of Earnings to Fixed Charges and Preferred Dividends                Combined |   |     | **4.10** |   |   | 4.46   |   |   | 4.36   |   |   | 4.50 |   |   | 3.74 |   |
|                                                                                              |   |     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |