Filed by Carolina Power & Light Company
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Carolina Power & Light Company
Commission File No. 001-03382
On March 29, 2000, Carolina Power & Light Company ("CP&L"), a North
Carolina Corporation, delivered the following presentation to analysts.
<PAGE>
Deutsche Banc Alex.Brown
Southeast Utilities
Seminar
Boston, Massachusetts
March 28-29, 2000
Carolina Power & Light
Update
Remarks by:
Mark F. Mulhern
Vice President & Treasurer
[LOGO OF CP&L]
<PAGE>
Safe Harbor Statement
The matters discussed in this presentation that are not historical facts are
forward-looking statements and, accordingly, involve estimates, projections,
goals, forecasts, assumptions, risks and uncertainties that could cause actual
results or outcomes to differ materially form those expressed in the
forward-looking statements. Any forward-looking statement speaks only as of the
date on which such statement is made, and the Company undertakes no obligation
to update any forward-looking statement or statements to reflect events or
circumstances after the date on which such statement is made.
Questions and inquiries should be directed to Bob Drennan, Manager of Investor
Relations (919) 546-7474 or Karen Ralph, Investor Relations Analyst (919)
546-6931. We invite you to visit our website at www.cplc.com for a variety of
information about Carolina Power & Light Company and its businesses.
<PAGE>
CP&L update
================================================================================
o Florida Progress acquisition
o Generation plans
o Technology subsidiaries
o Earnings
[LOGO OF CP&L]
<PAGE>
Regulatory update
================================================================================
CLOSING
1st Quarter 2000 2nd Quarter 2000 3rd Quarter 2000 Fall 2000
- --------------------------------------------------------------------------------
------------- ---------------- ---------------
FERC Filing DOJ Filing NCUC Hearing
------------- ---------------- ---------------
------------- ---------------- ---------------
NRC Filing Proxy Mailed NCUC Approval
------------- to Shareholders ---------------
---------------
------------- ---------------- ---------------
NCUC Merger Shareholder NRC Approval
Application Vote ---------------
Filing ----------------
------------- ---------------
SEC Approval
------------- ---------------
SEC
Filing ---------------
------------- FERC Approval
---------------
[LOGO OF CP&L]
<PAGE>
Florida Progress Acquisition
[SLIDE DEPICTING A PAGE OF CP&L'S INTERNET WEBSITE SHOWING THE STATUS OF
REGULATORY APPROVAL IN CONNECTION WITH THE FLORIDA PROGRESS ACQUISITION]
www.cplc.com
<PAGE>
FERC application
================================================================================
o Sell 135MW of generating capacity for a six-year period
o Establish or join RTO no later than 90 days after completing the
merger
-----------------------------------------
<------------- Timeline -------------->
-----------------------------------------
February 3 Application filed
April 3 Petitions to intervene due
June 30 Requested order date
-----------------------------------------
[LOGO OF CP&L]
<PAGE>
NCUC application
================================================================================
o Merger causes no adverse changes in market power in NC markets
o Merger is in the public interest
-----------------------------------------
<------------- Timeline -------------->
-----------------------------------------
February 3 Application filed
March 17 Testimony filed
June 28 Intervenor testimony due
July 11 Rebuttal testimony due
July 18 Hearings
Fall Final order
-----------------------------------------
[LOGO OF CP&L]
<PAGE>
Synthetic fuels
================================================================================
o Based on four plants purchased in October 1999
o Plants operational 2000-2007
o FPC shareholders receive one Contingent Value Obligation for each
share of FPC common shares owned at closing
[LOGO OF CP&L]
<PAGE>
Synthetic fuels
================================================================================
[LINE GRAPH DEMONSTRATING THAT HOLDERS OF CONTINGENT VALUE OBLIGATIONS WILL BE
ENTITLED TO 50% OF THE NET AFTER-TAX CASH FLOW IN EXCESS OF $80 MILLION PER YEAR
FOR EACH OF THE YEARS 2001 THROUGH 2007 AND THAT ANNUAL NET AFTER-TAX CASH FLOW
COULD REACH AN AVERAGE OF $140 MILLION PER YEAR OVER THE YEARS IN WHICH THE
RIGHTS TO THOSE PAYMENTS CAN ACCRUE TO THE CONTINGENT VALUE OBLIGATIONS]
[LOGO OF CP&L]
<PAGE>
CP&L/FPC synergies
================================================================================
Synergies of $1 billion over next 10 years
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE GRAPH IN THE SLIDE.]
Business Optimization 30%
Integrate Corporate Functions 32%
Integrate Corporate Programs 32%
Purchasing economies 6%
[LOGO OF CP&L]
<PAGE>
CP&L update
================================================================================
o Florida Progress Acquisition
o Generation plans
o Technology subsidiaries
o Earnings
[LOGO OF CP&L]
<PAGE>
Generation additions
================================================================================
Under construction or announced
In-service
date MW
--------------------------------------------
1999 325
--------------------------------------------
2000 1,286
--------------------------------------------
2001 1,239
--------------------------------------------
2002 625
--------------------------------------------
Total 3,475
[LOGO OF CP&L]
<PAGE>
Develop pipeline infrastructure
================================================================================
[MAP OF THE STATES OF NORTH CAROLINA AND SOUTH CAROLINA SHOWING THE LOCATIONS OF
(i) EXISTING INTERSTATE PIPELINES, (ii) EXISTING NCNG PIPELINES AND
(iii) ANNOUNCED/NEW PIPELINE ROUTING]
[LOGO OF CP&L]
<PAGE>
CP&L update
================================================================================
o Florida Progress Acquisition
o Generation plans
o Technology subsidiaries
o Earnings
[LOGO OF CP&L]
<PAGE>
[PHOTOGRAPH OMITTED]
[LOGO OF INTERPATH]
<PAGE>
Expanding network reach
================================================================================
[MAP SHOWING INTERPATH'S FIBER [MAP SHOWING OVERALL
NETWORK AND POINTS OF PRESENCE COMPANY AND VISION]
IN THE STATES OF MARYLAND, VIRGINIA,
NORTH CAROLINA, SOUTH CAROLINA AND
GEORGIA AND THE DISTRICT OF COLUMBIA]
[LOGO OF CP&L]
<PAGE>
[LOGO OF SRS] Revenues have grown
================================================================================
[BAR CHART REPRESENTING THE GROWTH OF SRS'
REVENUES FROM 1997 THROUGH 2000 (ESTIMATED)]
Recognized in 1999 as the 7th fastest growing technology company in NC
[LOGO OF CP&L]
<PAGE>
[LOGO OF SRS] Revenues sources will change
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE GRAPH IN THE SLIDE.]
1999
E-Business 17%
Enterprise Automation 41%
Performance Contracting 42%
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE GRAPH IN THE SLIDE.]
2003
E-Business 42%
Enterprise Automation 33%
Performance Contracting 25%
[LOGO OF CP&L]
<PAGE>
Statusgo.com
[LOGO] a division of CP&L
www.statusgo.com
<PAGE>
[LOGO of statusgo.com] Day one - profitable
================================================================================
o Anchor tenant - Sears
o Initially 800+ sites [PHOTOGRAPH OF SEARS]
Expanded to 1,450 sites in 50 states
o Numerous proposals in the pipeline
[LOGO OF CP&L]
<PAGE>
CP&L update
================================================================================
o Florida Progress
o Generation plans
o Technology subsidiaries
o Earnings
[LOGO OF CP&L]
<PAGE>
Earnings update
================================================================================
7% long-term CAGR
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE SLIDE.]
2000 2001
---- ----
$3.00 $3.40
[LOGO OF CP&L]
<PAGE>
A strong southeastern focus
================================================================================
-----------------------------------------------------------------
FOCUS o Merger o Expansion
o Generation
-----------------------------------------------------------------
RISK o Southeast o Rate freeze
o Domestic
-----------------------------------------------------------------
DIVIDENDS o Current yield of 7 percent
-----------------------------------------------------------------
OPTIONALITY o Technology o Electric fuels
investments businesses
-----------------------------------------------------------------
[LOGO OF CP&L]
<PAGE>
[LOGO OF CP&L]
<PAGE>
- --------------------------------------------------------------------------------
Merger update
- --------------------------------------------------------------------------------
Overview of the proposed transaction
(Implied value of consideration per FPC share)
Effect of collar based on CP&L Stock Price
[Graph showing the effect of the collar on CP&L's stock price and the implied
value of consideration to be received by Florida Program shareholders]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Illustrations of Exchange Ratio Application and the Value of Cash and Stock Consideration to be Received
Total Value
of Cash and
Stock
Consideration
to be
Number of $ Value of Cash Payment Cash Received per
Average CP&L Whole CP&L CP&L Energy for Consideration 100 Florida
Energy Closing Exchange Energy Shares Shares to be Fractional to be Progress
Price Ratio to be Received Received Share Received Shares
- ----- ----- -------------- -------- ----- -------- ------
<S> <C> <C> <C> <C> <C> <C>
$27.00 1.4543 50 $1,350.00 $24.31 $3,510.00 $4,884.31
$28.00 1.4543 50 $1,400.00 $25.21 $3,510.00 $4,935.21
$29.00 1.4543 50 $1,450.00 $26.11 $3,510.00 $4,986.11
$30.00 1.4543 50 $1,500.00 $27.02 $3,510.00 $5,037.02
$33.00 1.4543 50 $1,650.00 $29.72 $3,510.00 $5,189.72
$35.00 1.4543 50 $1,750.00 $31.52 $3,510.00 $5,291.52
$37.13 1.4543 50 $1,856.50 $33.44 $3,510.00 $5,399.94
$39.00 1.3846 48 $1,872.00 $17.98 $3,510.00 $5,399.98
$41.00 1.3171 46 $1,886.00 $ 4.04 $3,510.00 $5,400.04
$42.00 1.2857 44 $1,848.00 $41.98 $3,510.00 $5,399.98
$44.00 1.2273 42 $1,848.00 $42.04 $3,510.00 $5,400.04
$45.39 1.1897 41 $1,860.99 $29.03 $3,510.00 $5,400.02
$48.00 1.1897 41 $1,968.00 $30.70 $3,510.00 $5,508.70
$50.00 1.1897 41 $2,050.00 $31.98 $3,510.00 $5,591.98
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Merger update
- --------------------------------------------------------------------------------
CP&L/FPC merger timeline
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Filing/Application Date Filed Planned Filing Order Received Order Expected
Date
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Holding Company
- ----------------------------------------------------------------------------------------------------
NRC 9/15/99 12/31/99
- ----------------------------------------------------------------------------------------------------
NCUC 10/15/99 2nd Quarter
- ----------------------------------------------------------------------------------------------------
SEC 10/18/99 2nd Quarter
- ----------------------------------------------------------------------------------------------------
SCPSC 10/19/99 3/06/00
- ----------------------------------------------------------------------------------------------------
FCC 10/21/99 02/09/00
- ----------------------------------------------------------------------------------------------------
FERC 10/26/99 12/23/99
- ----------------------------------------------------------------------------------------------------
Merger
- ----------------------------------------------------------------------------------------------------
NRC-Transfer of Control 1/31/99 3rd Quarter
- ----------------------------------------------------------------------------------------------------
NCUC-Merger Approval 2/03/00 3rd Quarter
- ----------------------------------------------------------------------------------------------------
FERC-Merger Approval 02/03/00 2nd Quarter
- ----------------------------------------------------------------------------------------------------
SEC-Merger Approval 03/14/00 3rd Quarter
- ----------------------------------------------------------------------------------------------------
FCC-Transfer of Licenses 1st Quarter 2nd Quarter
- ----------------------------------------------------------------------------------------------------
SEC-Proxy mailed to shareholders 2nd Quarter NA
- ----------------------------------------------------------------------------------------------------
FTC/DOJ (HSR) 2nd Quarter 3rd Quarter
- ----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Merger Update
- --------------------------------------------------------------------------------
================================================================================
SUMMARY OF THE
FEDERAL ENERGY REGULATORY COMMISSION APPLICATION
CPL/FPC Proposed Business Combination
Docket Nos. EC00-55
Date Filed: February 3, 2000
Overall Request
CP&L Holdings, Inc. and Florida Progress Corporation, on behalf of themselves
and their subsidiaries (the "Applicants"), seek authorization and approval to
merge those subsidiaries that are subject to the Federal Energy Regulatory
Commission's ("FERC's") jurisdiction. The principal utilities joined through
this merger are Carolina Power & Light Company ("CP&L"), which provides
wholesale and retail electric service principally in the states of North
Carolina and South Carolina, and Florida Power Corporation ("FPC"), which
provides wholesale and retail electric service primarily in central and northern
Florida. As a consequence of the merger, the Applicants will achieve greater
efficiencies through economies of scale, derive advantages of geographic and
customer diversity, and attain greater financial strength.
Market Power
The proposed merger poses no significant market power concerns. Based upon the
FERC market power analysis, there are limited market power issues in CP&L and
FPC markets resulting from the transaction. To resolve these issues, the
Applicants commit to:
1. Sell 135 MW of generating capacity for a six year period. This sale of
less than 1% of the companies' combined generation resources is intended
to foreclose any questions related to the impact of the merger on
wholesale competition.
2. File for FERC approval to establish or join Regional Transmission
Organizations ("RTOs") in their respective regions no later than 90 days
after completing the merger. (In its recent Order No. 2000, FERC
encouraged all transmission-owning utilities to turn over operation of
their transmission systems to RTOs.)
Rates
The Applicants commit to hold all wholesale requirements and transmission
customers harmless from any adverse effect of the proposed transaction on the
FERC jurisdictional rates.
- --------------------------------------------------------------------------------
FERC APPLICATION TIMELINE
February 3, 2000 Application filed
April 3, 2000 Petitions to intervene due
The Applicants have requested in their Application that the Commission authorize
the proposed merger as expeditiously as possible and, in any event, no later
than June 30, 2000 . Such a schedule is consistent with the FERC's Merger Policy
Statement, which contemplates FERC action on merger applications within
approximately five months of their filing.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Merger Update
- --------------------------------------------------------------------------------
================================================================================
Summary of the North Carolina Utility Commission Application
CPL/FPC Proposed Business Combination
Docket No. E-2, Sub 760
Date Filed: February 3, 2000
Overall Request
CP&L Holdings, Inc. ("CP&L Holdings") seeks authorization to engage in a
business combination transaction between CP&L Holdings and Florida Progress
Corporation ("FPC") and in connection with that transaction, authorization to
issue common stock without par value. CP&L Holdings is a corporation organized
and existing under the laws of the State of North Carolina. As part of the
merger, CP&L Holdings will create CP&L Services, Inc., a service company to
provide certain administrative services to its electric utility subsidiaries and
non-utility subsidiaries.
G.S. 62-111 provides that all mergers or combinations affecting a public utility
require commission approval. The statute further provides that the standard the
commission shall use in determining whether to approve the merger is whether the
merger is "justified by public convenience and necessity."
- --------------------------------------------------------------------------------
NCUC Application Timeline
February 3, 2000 Application filed
March 17, 2000 Testimony filed
June 28, 2000 Intervenor testimony due
June 11, 2000 Rebuttal testimony due
July 18, 2000 Hearings
Fall 2000 Final order
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Energy supply
- --------------------------------------------------------------------------------
Facilities - under construction or announced
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Maximum
Expected Dependable
Plant Location Unit Number In-service Capacity (MW)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Combustion turbines-gas
Asheville Skyland, NC 4 2000 165
Wayne County Goldsboro, NC 1-4 2000 668
Monroe Monroe, GA 2 2001 160
Rowan County NC 1-3 2001 459
Richmond County NC 1-4 2001 620
Richmond County NC 5 2002 155
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Combined cycle - gas
Richmond County (1) NC Block 1 2002 470
- --------------------------------------------------------------------------------------------
Total facilities under construction or announced 2,697
- --------------------------------------------------------------------------------------------
</TABLE>
(1) Two combustion turbines will be used as part of a combined cycle plant
with the first steam unit scheduled to be placed in service in 2002.
Currently pending NCUC approval.
Purchases - under construction or announced
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Maximum
Expected Dependable
Plant Location Unit Number In-service Capacity (MW)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Combustion turbines - gas
Broad River Cherokee County, SC 2000 453
Undesignated 2001 150
Undesignated 2002 150
- -------------------------------------------------------------------------------------------------
Total purchases under construction or announced 753
- -------------------------------------------------------------------------------------------------
</TABLE>
Resource plan additions (MW's)
- --------------------------------------------------------------------------------
2000 2001 2002
---------------------------------------------------
System additions
Load (1) 11,013 12,118 12,457
Additions 833 1,440-1,803 105-478
Reserves 10.5% 10%-13% 10%-13%
Regional additionals 600-775 0-300 500-1,200
- --------------------------------------------------------------------------------
Total Additions 1,433 - 1,608 1,440 - 2,103 605 - 1,678
- --------------------------------------------------------------------------------
(1) System internal sales growth is forecasted to average approximately 2.8%
per year.
<PAGE>
- --------------------------------------------------------------------------------
Cash flows
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Actual Projected 2000-2002
Cash Flow ($ in millions) 1999 2000 2001 2002 Totals
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating Activities
Depreciation and amortization (1) 592 652 681 704 2,037
Deferred income taxes (32) (138) (79) (17) (234)
Investment tax credits (10) (10) (10) (10) (30)
Allowance for funds used during construction (21) (32) (38) (91)
Earnings and other net changes 282 542 446 498 1,486
- ---------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 832 1,025 1,006 1,137 3,168
- ---------------------------------------------------------------------------------------------------------------
Investing Activities (2)
Construction expenditures (689) (851) (876) (912) (2,639)
Nuclear Fuel (76) (64) (94) (66) (224)
Other (4) (237) (156) (289) (211) (656)
- ---------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,002) (1,071) (1,259) (1,189) (3,519)
- ---------------------------------------------------------------------------------------------------------------
Financing Activities
Mandatory retirements (113) (201) (5) (251) (457)
Other 332 171 258 303 732
- ---------------------------------------------------------------------------------------------------------------
Net cash used in financing activities 219 (30) 253 52 275
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash
and Cash Equivalents 49 (76) (0)
- ---------------------------------------------------------------------------------------------------------------
Cash and Cash Equivalents at Beginning of year 31 80 4 4
- ---------------------------------------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Year 80 4 4 4
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Projected depreciation and amortization amounts include accelarated
amortizations of regulatory assets and accelarated depreciation of
nuclear assets.
(2) Power Agency's contributing its proportionate share of any additional
construction costs on the jointly owned units. Construction expenditures,
nuclear fuel expenditures and related AFUDC are not of Power Agency's
share.
(3) Construction expenditures related to Clean Air Act and NOXSIP call
requirements will be approximately $311 million for the 2000-2002 period.
(4) The Company has total projected cash requirements of approximately $565
million for the years 2000 through 2002 relating to expenditures in
affordable housing and merchant generation projects.
The Company's last general rate case was in 1988. No general rate cases
are assumed during the forecast period. Actual results may vary
significantly as a result of financial market conditions, regulatory
actions and various other actions.
<PAGE>
In connection with the share exchange between CP&L Energy and Florida Progress,
Carolina Power & Light and Florida Progress have filed with the Securities and
Exchange Commission (the "SEC") a preliminary joint proxy statement/prospectus.
CP&L Energy will file a Registration Statement on Form S-4 and Florida Progress
will file a definitive proxy statement each of which will contain the definitive
joint proxy statement/prospectus of CP&L Energy and Florida Progress in addition
to other relevant documents concerning the share exchange with the SEC. We urge
investors to read the definitive joint proxy statement/prospectus and any other
relevant documents to be filed with the SEC because they contain important
information. Investors will be able to obtain the documents free of charge at
the SEC's web site, http://www.sec.gov. In addition, documents filed by Carolina
Power & Light and CP&L Energy with the SEC can be obtained by contacting
Carolina Power & Light and CP&L Energy at the following address and telephone
number: Shareholder Relations, 411 Fayetteville Street, Raleigh, North Carolina
27601, telephone: (800) 662-7232. Documents filed with the SEC by Florida
Progress can be obtained by contacting Florida Progress at the following address
and telephone number: Investor Services, P.O. Box 14042 (BT11B), St. Petersburg,
Florida 33733, telephone: (800) 937-2640. Read the definitive joint proxy
statement/prospectus carefully before making a decision concerning the share
exchange.
CP&L Energy, its officers, directors, employees and agents may be soliciting
proxies from CP&L Energy shareholders in connection with the share exchange.
Information concerning the participants in the solicitation is set forth in the
preliminary joint proxy statement/prospectus filed by Carolina Power & Light
with the SEC on March 6, 2000.
Florida Progress, its officers, directors, employees and agents may be
soliciting proxies from Florida Progress shareholders in connection with the
share exchange. Information concerning the participants in the solicitation is
set forth in the preliminary joint proxy statement/prospectus filed by Florida
Progress with the SEC on March 6, 2000.
