FORM U-3A-2
File No. 69-267
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Statement by Holding Company Claiming Exemption Under Rule
U-3A-2 from the Provisions of the Public Utility Holding Company
Act of 1935
To Be Filed Annually Prior to March 1
FLORIDA PROGRESS CORPORATION
(Name of Company)
hereby files with the Securities and Exchange Commission,
pursuant to Rule 2, its statement claiming exemption as a holding
company from the provisions of the Public Utility Holding Company
Act of 1935, and submits the following information:
1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF
BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER
THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN
UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY
HOLDS AN INTEREST, AS OF DECEMBER 31, 1998.
Name/ Location and
(State of Organization) Nature of Business
Claimant
Florida Progress Corporation Principal Executive Office
(Florida) located at One Progress Plaza
St. Petersburg, Florida 33701
Holding Company
Subsidiaries of Florida Progress Corporation
Florida Power Corporation St. Petersburg, Florida,
(Florida) Electric Utility
Progress Capital Holdings, Inc. St. Petersburg, Florida
(Florida) Downstream Holding Company
Progress Provisional Holdings, Florida, Investment in
(Florida) Real Estate
FPC Del, Inc. (Delaware) Delaware, Holder of accounts
receivable
<PAGE>
Subsidiaries of Florida Power Corporation
Energy Solutions, Inc. Non-regulatory Product
(Florida) Marketing and Sales
Subsidiaries of Progress Capital Holdings, Inc.
Mid-Continent Life Insurance Alabama, Arizona, Arkansas,
Company (Oklahoma) California, Colorado, Florida,
Georgia, Idaho, Illinois,
Indiana, Iowa, Kansas,
Kentucky, Louisiana, Michigan,
Minnesota, Mississippi,
Missouri, Montana, Nebraska,
Nevada, New Mexico, North
Carolina, North Dakota, Ohio,
Oklahoma, Oregon, S. Carolina,
S. Dakota, Tennessee, Texas,
Utah, Virginia, Washington,
W. Virginia, Wisconsin, and
Wyoming, Life Insurance
PIH, Inc. (Florida) Florida, International Power
Production Projects
Progress Reinsurance Company, Grand Cayman,
Ltd. (Cayman Islands) Cayman Islands, B.W.I.,
Captive Insurance Company
Progress Telecommunications,Inc. Florida, Provides Wholesale
(Florida) Telecommunications Capacity
Service
Progress-Centrus, Inc. Florida, Participates in
(Florida) Retail Marketing Alliance
Progress Energy Corporation Florida, Development of
(Florida) Independent and Cogeneration
Power Projects
Progress Holdings, Inc. Florida, Participates in
(Florida) Marketing Alliance to Multi-
Site Electric Customers
Electric Fuels Corporation Florida, Kentucky, Texas,
(Florida) Virginia, Ohio and West
Virginia, Sale and Mining
of Coal
Subsidiary of Progress-Centrus, Inc.
Centrus, LLP (Indiana) Colorado, Florida, Texas
and New Mexico, Marketing
<PAGE>
Subsidiaries of Progress Energy Corporation
PEC Fort Drum, Inc. New York, Holder of Indirect
(Florida) Interest in Cogeneration
Project
Progress Desal, Inc. Florida, Development and
(Florida) Operation of a Desalination
Project for the Supply of
Potable Water
Progress Power Marketing, Inc. Florida, Inactive
(Florida)
Subsidiary of PIH, Inc.
ep3 L.L.C. Delaware, International
(Delaware) Marketing Alliance for
Development of Power
Generation Projects
Subsidiary of Progress Holdings, Inc.
Cadence Network, LLC Ohio, Marketing of Energy
(Ohio) Supply Services
Subsidiaries of Electric Fuels Corporation
Awayland Coal Company, Inc. Kentucky and Virginia,
(Kentucky) Partner in Powell Mountain
Joint Venture, Coal Mining
COMCO of America, Inc. Inactive
(Florida)
Dixie Fuels Limited Texas, Owner/Operator of
(partnership) (Texas) Oceangoing Barges and Tugs
Dixie Fuels II, Limited Texas, Owner/Operator of
(partnership) (Texas) Marine Transportation
Equipment, Terminalling and
Transporting Bulk Cargoes
Homeland Coal Company, Inc. Kentucky and Virginia, Partner
(Kentucky) in Powell Mountain Joint
Venture, Coal Mining
Kentucky May Coal Kentucky and Ohio, Mining and
Company, Inc. (Virginia) Operation of Coal Facilities
Little Black Mountain Coal Kentucky and Virginia, Partner
Reserves, Inc. (Kentucky) in Dulcimer Land Company
Little Black Mountain Land Kentucky and Virginia, Owner
Company (Kentucky) of Coal Property
MEMCO Barge Line, Inc. Missouri and Louisiana,
(Delaware) Owner, Manager and Broker
of River Barges and Towboats
Mesa Hydrocarbons, Inc. Colorado, Owner of Natural
(Florida) Gas Reserves and Wells
Powell Mountain, Inc. Virginia, Interest in Coal
(Virginia) Mine Operations
Progress Land Corporation Kentucky, Ownership and
(Florida) Management of Coal Reserves
Progress Materials, Inc. Florida, Commercialization and
(Florida) Manufacture of Aardelite
Aggregate
Progress Metal Reclamation Kentucky, Ohio, and West
Company (Kentucky) Virginia, Railcar Scrapping
and Repair, and Metal
Recycling
Progress Rail Services Alabama, Arkansas, California,
Corporation (Alabama) Colorado, Georgia, Florida,
Illinois, Indiana, Iowa,
Kentucky, Louisiana, Nebraska,
Mississippi, Missouri, New
Jersey, Pennsylvania, South
Carolina, Tennessee, Texas,
Wyoming, Alberta and Quebec,
Repair and Service of Railcars
Subsidiary of Awayland Coal Company, Inc.
Powell Mountain Joint Venture Kentucky and Virginia,
(partnership)(Virginia) Coal Mining
Subsidiary of Homeland Coal Company, Inc.
Powell Mountain Joint Venture Kentucky and Virginia,
(partnership)(Virginia) Coal Mining
Subsidiaries of Kentucky May Coal Company, Inc.
Diamond May Coal Company Kentucky, Mining and Operation
(Kentucky) of Coal Facilities
Cincinnati Bulk Terminals, Inc. Ohio and Kentucky, Sale and
(Delaware) Terminalling of Coal and
Other Bulk Commodities
<PAGE>
Kentucky May Mining Company Kentucky, Coal Mining
(Florida)
Subsidiary of Cincinnati Bulk Terminals, Inc.
Kanawha River Terminals, Inc. West Virginia and Kentucky,
(Florida) Sale and Terminalling of Coal
Marigold Dock, Inc. (Alabama) Kentucky, Owner of Coal
Loading Facility
Subsidiary of Kanawha River Terminals, Inc.
Colona Sub No. 2, LLC Indiana, Partner in Colona
(Indiana) SynFuel Limited Partnership,
L.L.L.P., Producer and Seller
of Solid Synthetic Fuel
Subsidiary of Diamond May Coal Company
Diamond May Mining Company Kentucky, Coal Mining
(Florida)
Subsidiary of Little Black Mountain Coal Reserves, Inc.
Dulcimer Land Company Kentucky and Virginia,
(partnership)(Kentucky) Management of Coal Reserves
Subsidiaries of MEMCO Barge Line, Inc.
Elmwood Marine Services, Inc. Louisiana, Kentucky and
(Louisiana) W. Virginia, Fleeting,
Washing and Repair of Barges;
Ownership Interest in Inter-
national Marine Terminals
Partnership
Subsidiaries of Elmwood Marine Services, Inc.
Conlease, Inc. Louisiana, Owner of
(Louisiana) Batture Leases
International Marine Terminals Louisiana, Owner/Operator
Partnership (partnership) of Bulk Materials Terminal
(Louisiana)
Subsidiary of International Marine Terminals Partnership
I.M.T. Land Corp. Louisiana, Owner of
(Louisiana) Terminal Land
<PAGE>
Subsidiaries of Powell Mountain, Inc.
PMCC, Inc. Virginia, Interest in Coal
(Virginia) Mine Operation
Powell Mountain Coal Virginia and Kentucky,
Company, Inc. (Virginia) Interest in Coal Mine
Operation
Subsidiary of Powell Mountain Coal Company, Inc.
Murphy Land Company, Inc. Kentucky and Virgiia,
(Virginia) Partner in Dulcimer Land
Company and Owner of Coal
Property
Subsidiaries of Progress Rail Services Corporation
Chemetron-Railway Products, Colorado, Delaware, Georgia,
Inc. (Delaware) Iowa, Illinois, Kentucky,
Missouri, Montana, New Jersey,
Ohio, Pennsylvania, Wyoming,
British Columbia and Manitoba,
Rail Welding Services and
Manufacturing, Sale and Lease
of Welding and Rail Handling
Equipment
FM Industries, Inc. Texas, Manufacture & Repair
(Texas) of Railcar Parts
Kentuckiana Railcar Repair & Indiana, Railcar Repair
Storage Facility, LLC Facility
(Indiana)
PRS International Sales Virgin Islands, Foreign
Company, Inc. (Virgin Islands) Sales Corporation Agent
Railcar, Ltd. Georgia, Railcar Equipment
(Georgia) Leasing and Selling and
Railcar Rolling Stock
Management
Southern Machine and Tool Georgia and California,
Company (Georgia) Machine Shop Design and
Fabrication, Manufacture of
Equipment and Railcar
Wheelshop
United Industries, Inc. Kentucky, Railcar Repair
(Kentucky) Facility
<PAGE>
Subsidiary of United Industries, Inc.
Kentuckiana Railcar Repair & Indiana, Railcar Repair
Storage Facility, LLC Facility
(Indiana)
Subsidiaries of Railcar, Ltd.
Grupo Fyl, S.A. de C.V. Mexico, Marketing, Leasing,
(Mexico) and Selling Railcars
Servicios Ferroviarios Progress, Mexico, Mexican Holding
S. de R.L. de C.V. (Mexico) and Operating Limited
Liability Company
Subsidiary of Servicios Ferroviarios Progress,
S. de R.L. de C.V.
Servicios Administrativos Fyl, Mexico, Personnel and
S. de R.L. de C.V. (Mexico) Administrative Services
Limited Liability Company
for Servicios Ferroviarios
Progress
<PAGE>
2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH
OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE
GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRIC
ENERGY FOR SALE, OR FOR THE PRODUCTION, TRANSMISSION, AND
DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE
LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES,
PRODUCING FIELDS, GAS MANUFACTURING PLANTS, AND ELECTRIC AND
GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES
WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS
SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES
WHICH DELIVER OR RECEIVE ELECTRIC ENERGY OR GAS AT THE
BORDERS OF SUCH STATE.
Florida Progress Corporation ("Progress") owns no property
used in the generation, transmission, or distribution of
electricity or for the production, transmission, and distribution
of natural or manufactured gas.
Florida Power Corporation ("Power") renders electric service
to approximately 1.3 million customers in central and northern
Florida (the "State") and along the west coast of the State.
Power is the only public utility subsidiary of Progress that owns
properties used for the generation, transmission, and
distribution of electric energy, and all such property is located
within the State. Power provides electric service in 32 of
the State's 67 counties. Its service territory, covering about
20,000 square miles, includes the rapidly growing areas around
Orlando, and the densely populated Gulf Coast cities of St.
Petersburg and Clearwater.
As of December 31, 1998, Power's total net winter generating
capacity was 7,727 megawatts ("MW"). This capacity is generated
by thirteen steam units with a capacity of 4,661 MW and
forty-five combustion turbine units with a capacity of 3,066 MW.
Approximately 53% of Power's capacity is in two locations. Five
steam plants totaling 3,031 MW, including Power's 90.4% share,
representing 755 MW, of one nuclear unit, are located at Crystal
River in Citrus County, Florida. Two steam plants totaling 1,034
MW are located at Anclote in Pasco County, Florida. The remaining
steam plants and the combustion turbine units are located in
Florida in Pinellas, Volusia, Osceola, Highlands, Polk, Orange,
Suwannee and Alachua counties.
Power owns 363 substations having an aggregate transformer
capacity of 43,255,840 kilivolt amperes. The transmission
system consists of approximately 4,669 circuit miles of high
voltage transmission lines, of which 2,646 circuit miles are
operated at 500, 230 or 115 kilivolts ("KV") and the balance at
69 KV. Power has numerous interconnection points with other
generating utilities within the State and seven interconnections
with Georgia Power Company, which permit Power to receive energy
from and deliver it to Georgia. Power has 23,723 circuit miles
of distribution lines which operate at various voltages ranging
from 2.4 to 25 KV.
<PAGE>
3. THE FOLLOWING INFORMATION FOR THE LATEST CALENDAR YEAR
(1998) WITH RESPECT TO CLAIMANT AND EACH OF ITS SUBSIDIARY
PUBLIC UTILITY COMPANIES:
(A) NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT
RETAIL OR WHOLESALE), AND MCF. OF NATURAL OR
MANUFACTURED GAS DISTRIBUTED AT RETAIL.
(b) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF
NATURAL OR MANUFACTURED GAS DISTRIBUTED AT
RETAIL OUTSIDE THE STATE IN WHICH EACH SUCH
COMPANY IS ORGANIZED.
(c) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF
NATURAL OR MANUFACTURED GAS SOLD AT WHOLESALE
OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS
ORGANIZED, OR AT THE STATE LINE.
(d) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF
NATURAL OR MANUFACTURED GAS PURCHASED OUTSIDE THE
STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED OR
AT THE STATE LINE.
Claimant: None
Florida Power Corporation: (In Millions)
(a) Number of KWH of electric
energy sold
Associated
Revenues
State KWH ($ in millions)
Florida 37,251.1 2,596.0
(b) Number of KWH of electric
energy distributed at retail
outside the State None
(c) Number of KWH of electric
energy sold at wholesale
outside the State or at the
State line 475.6
Associated
Revenues
State* KWH ($ in millions)
Alabama 108.6 4.524
Connecticut --- 0.001
Georgia 103.3 2.588
Kentucky 67.1 2.311
<PAGE>
Maryland 34.5 1.734
Missouri 5.3 0.167
North Carolina 0.2 0.020
Oklahoma 0.1 0.009
Tennessee 1.2 0.029
Texas 154.6 8.036
Virginia 0.7 0.039
475.6 19.458
(d) Number of KWH of electric
energy purchased outside the
State or at the State line 2,111.0
Associated
Revenues
State* KWH ($ in millions)
Alabama 1,879.9 84.187
Connecticut 10.8 0.431
Georgia 62.0 2.421
Kentucky 46.4 1.673
Maryland --- (0.443)
Missouri 8.3 0.427
New York 8.2 0.254
Pennsylvania 39.0 2.182
Texas 45.6 2.292
Virginia 10.8 0.738
2,111.0 94.162
*States designated represent the location of the headquarters of
the companies to/from whom Florida Power Corporation has sold/
purchased KWH. Deliveries may have occurred at the Florida/
Southern interconnect or elsewhere.
<PAGE>
4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH
RESPECT TO CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR
INDIRECTLY IN AN EWG OR A FOREIGN UTILITY COMPANY, STATING
MONETARY AMOUNTS IN UNITED STATES DOLLARS:
(A) NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE
FACILITIES USED BY THE EWG OR FOREIGN UTILITY COMPANY
FOR THE GENERATION, TRANSMISSION AND DISTRIBUTION OF
ELECTRIC ENERGY FOR SALE OR FOR THE DISTRIBUTION AT
RETAIL OF NATURAL OR MANUFACTURED GAS.
(B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN
SUCH EWG OR FOREIGN UTILITY COMPANY, AND DESCRIPTION OF
THE INTEREST HELD.
(C) TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR
INDIRECTLY, BY THE HOLDING COMPANY CLAIMING EXEMPTION;
ANY DIRECT OR INDIRECT GUARANTEE OF THE SECURITY OF THE
EWG OR FOREIGN UTILITY COMPANY BY THE HOLDING COMPANY
CLAIMING EXEMPTION; AND ANY DEBT OR OTHER FINANCIAL
OBLIGATION FOR WHICH THERE IS RECOURSE, DIRECTLY OR
INDIRECTLY, TO THE HOLDING COMPANY CLAIMING EXEMPTION
OR ANOTHER SYSTEM COMPANY, OTHER THAN THE EWG OR
FOREIGN UTILITY COMPANY.
(D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN
UTILITY COMPANY DURING THE REPORTING PERIOD.
(E) IDENTIFY ANY SERVICE, SALES OR CONSTRUCTION CONTRACT(S)
BETWEEN THE EWG OR FOREIGN UTILITY COMPANY AND A SYSTEM
COMPANY, AND DESCRIBE THE SERVICES TO BE RENDERED OR
GOODS SOLD AND FEES OR REVENUES UNDER SUCH
AGREEMENT(S).
None
<PAGE>
EXHIBIT A
FINANCIAL STATEMENTS
Exhibit
Number Description of Exhibit
99.(A) Consolidating statements of income and retained
earnings for the calendar year 1998 together
with the consolidating balance sheet as of
December 31, 1998 for Florida Progress Corpora-
tion and its first-tier subsidiaries: Progress
Capital Holdings, Inc., FPC Del, Inc., Progress
Provisional Holdings, Inc., and Florida
Power Corporation.
99.(B) Consolidating statements of income and retained
earnings for the calendar year 1998, together
with the consolidating balance sheet as of
December 31, 1998 for Progress Capital Holdings,
Inc. and its first-tier subsidiaries: Progress
Holdings, Inc., Mid-Continent Life Insurance
Company, Progress Reinsurance Company, Ltd.,
Progress Energy Corporation, Progress-Centrus,
Inc., PIH, Inc., Progress Telecommunications,
Inc., and Electric Fuels Corporation.
EXHIBIT B
FINANCIAL DATA SCHEDULE
Exhibit No.
27 Financial Data Schedule for Florida Progress
Corporation.
EXHIBIT C
ORGANIZATIONAL CHART SHOWING RELATIONSHIP
OF EACH EWG OR FOREIGN UTILITY
None.
<PAGE>
SIGNATURES
The above-named claimant has caused this statement to be
duly executed on its behalf by its authorized officer on the
22nd day of February, 1999.
FLORIDA PROGRESS CORPORATION
By: /s/ Jeffrey R. Heinicka
____________________________
Jeffrey R. Heinicka
Senior Vice President and
Chief Financial Officer
(Corporate Seal)
Attest:
By: /s/ Douglas E. Wentz
_________________________________
Douglas E. Wentz
Assistant Secretary
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
Kenneth E. Armstrong
Vice President and General Counsel
Florida Progress Corporation
P.O. Box 33042
St. Petersburg, Florida 33733
(727) 820-5153
<PAGE>
EXHIBIT INDEX
Description of Exhibit
Exhibit
Number
27 Financial Data Schedule for Florida Progress
Corporation.
99.(A) Consolidating statements of income and retained
earnings for the calendar year 1998 together
with the consolidating balance sheet as of
December 31, 1998 for Florida Progress Corpora-
tion and its first-tier subsidiaries: Progress
Capital Holdings, Inc., FPC Del, Inc., Progress
Provisional Holdings, Inc., and Florida
Power Corporation.
99.(B) Consolidating statements of income and retained
earnings for the calendar year 1998, together
with the consolidating balance sheet as of
December 31, 1998 for Progress Capital Holdings,
Inc. and its first-tier subsidiaries: Progress
Holdings, Inc., Mid-Continent Life Insurance
Company, Progress Reinsurance Company, Ltd.,
Progress Energy Corporation, Progress-Centrus,
Inc., PIH, Inc., Progress Telecommunications,
Inc., and Electric Fuels Corporation.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CIK> 0000357261
<NAME> FLORIDA PROGRESS CORPORATION
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 6,161
<TOTAL-OPERATING-REVENUES> 3,620
<NET-INCOME> 282
</TABLE>
Exhibit 99.(A)
FLORIDA PROGRESS CORPORATION AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Florida Progress Florida Progress Florida
Progress Provisional Power Capital FPC Progress
Corp. Holdings, Inc. Corp. Holdings Del,Inc. Elim. Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
---------- ---------- ---------- ---------- ---------- ---------- ----------
REVENUES:
Electric utility $0.0 $0.0 $2,648.2 $ 0.0 $0.0 $ 0.0 $2,648.2
Diversified 286.5 0.0 0.0 1,240.7 0.0 (555.1) 972.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
286.5 0.0 2,648.2 1,240.7 0.0 (555.1) 3,620.3
EXPENSES: ---------- ---------- ---------- ---------- ---------- ---------- ----------
Electric utility:
Fuel 0.0 0.0 595.7 0.0 0.0 0.0 595.7
Purchased power 0.0 0.0 433.8 0.0 0.0 0.0 433.8
Energy conservation 0.0 0.0 79.6 0.0 0.0 0.0 79.6
Operation and maintenance 0.0 0.0 471.6 0.0 0.0 0.0 471.6
Depreciation 0.0 0.0 352.2 0.0 0.0 0.0 352.2
Taxes other than income taxes 0.0 0.0 203.6 0.0 0.0 0.0 203.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
0.0 0.0 2,136.5 0.0 0.0 0.0 2,136.5
---------- ---------- ---------- ---------- ---------- ---------- ----------
Diversified:
Cost of sales 0.0 0.0 0.0 1,094.0 0.0 (266.8) 827.2
Other 7.3 0.0 0.0 51.7 0.0 (2.7) 56.3
---------- ---------- ---------- ---------- ---------- ---------- ----------
7.3 0.0 0.0 1,145.7 0.0 (269.5) 883.5
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 279.2 0.0 511.7 95.0 0.0 (285.6) 600.3
---------- ---------- ---------- ---------- ---------- ---------- ----------
INTEREST EXPENSE AND OTHER:
Interest expense 2.6 0.0 136.5 49.7 0.0 (1.7) 187.1
Allowance for funds used
during construction 0.0 0.0 (16.9) 0.0 0.0 0.0 (16.9)
Other expense (income), net (0.7) 0.0 2.5 (4.6) 0.0 2.6 (0.2)
---------- ---------- ---------- ---------- ---------- ---------- ----------
1.9 0.0 122.1 45.1 0.0 0.9 170.0
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 277.3 0.0 389.6 49.9 0.0 (286.5) 430.3
Income taxes (4.4) 0.0 141.0 12.0 0.0 0.0 148.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET INCOME $281.7 $0.0 $248.6 $37.9 $0.0 ($286.5) $281.7
========== ========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
FLORIDA PROGRESS CORPORATION AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Florida Progress Florida Progress Florida
Progress Provisional Power Capital FPC Progress
Corp. Holdings, Inc. Corp. Holdings Del,Inc. Elim. Consol.
---------- ---------- ---------- ---------- ---------- ---------- ----------
ASSETS
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service
and held for future use $0.0 $0.0 $6,307.8 $0.0 $0.0 $ 0.0 $6,307.8
Less: Accumulated depreciation 0.0 0.0 2,716.0 0.0 0.0 0.0 2,716.0
Accumulated decommissioning
for nuclear plant 0.0 0.0 254.8 0.0 0.0 0.0 254.8
Accumulated dismantlement
for fossil plants 0.0 0.0 130.7 0.0 0.0 0.0 130.7
---------- ---------- ---------- ---------- ---------- ---------- ----------
0.0 0.0 3,206.3 0.0 0.0 0.0 3,206.3
Construction work in progress 0.0 0.0 378.3 0.0 0.0 0.0 378.3
Nuclear fuel, net of amortization 0.0 0.0 45.9 0.0 0.0 0.0 45.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net electric utility plant 0.0 0.0 3,630.5 0.0 0.0 0.0 3,630.5
Other property, net of depr. 3.9 0.6 11.5 544.1 0.0 0.0 560.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
3.9 0.6 3,642.0 544.1 0.0 0.0 4,190.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS:
Cash and equivalents (0.1) 0.0 0.0 2.6 0.0 0.0 2.5
Accounts receivable, net 0.0 0.0 64.2 204.3 144.9 0.0 413.4
Intercompany receivables 2.7 0.0 141.8 53.1 0.0 (197.6) 0.0
Inventories, primarily at average cost:
Fuel 0.0 0.0 48.4 21.4 0.0 0.0 69.8
Utility materials and supplies 0.0 0.0 83.3 0.0 0.0 0.0 83.3
Diversified materials 0.0 0.0 0.0 137.0 0.0 0.0 137.0
Income taxes receivable (6.4) 0.0 16.0 13.8 0.0 0.0 23.4
Other 0.2 0.0 109.5 15.0 0.0 0.0 124.7
---------- ---------- ---------- ---------- ---------- ---------- ----------
(3.6) 0.0 463.2 447.2 144.9 (197.6) 854.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
OTHER ASSETS:
Investments:
Leases & loans receivable, net 0.0 0.0 0.0 35.8 0.0 0.0 35.8
Joint ventures and partnerships 5.0 0.0 0.0 65.9 0.0 0.6 71.5
Invest in consol affiliates 1,870.5 0.0 0.5 0.0 0.0 (1,871.0) 0.0
Nuclear plt decommissioning fnd 0.0 0.0 332.1 0.0 0.0 0.0 332.1
Goodwill 0.0 0.0 0.0 139.8 0.0 0.0 139.8
Def purchased power contract term cost 0.0 0.0 321.0 0.0 0.0 0.0 321.0
Other 28.4 0.0 169.3 18.2 0.0 0.0 215.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
1,903.9 0.0 822.9 259.7 0.0 (1,870.4) 1,116.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
$1,904.2 $0.6 $4,928.1 $1,251.0 $144.9 $(2,068.0) $6,160.8
======= ======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
FLORIDA PROGRESS CORPORATION AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Florida Progress Florida Progress Florida
Progress Provisional Power Capital FPC Progress
CAPITAL AND LIABILITIES Corp. Holdings, Inc. Corp. Holdings Del,Inc. Elim. Consol.
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCK EQUITY:
Common stock 1,221.0 0.0 1,004.4 201.2 0.0 (1,205.5) 1,221.1
Retained earnings 640.9 0.0 815.7 (150.8) 0.0 (664.9) 640.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
1,861.9 0.0 1,820.1 50.4 0.0 (1,870.4) 1,862.0
CUMULATIVE PREFERRED STOCK OF FLORIDA POWER:
Without sinking funds 0.0 0.0 33.5 0.0 0.0 0.0 33.5
LONG-TERM DEBT 0.0 0.0 1,555.1 695.3 0.0 0.0 2,250.4
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL CAPITAL 1,861.9 0.0 3,408.7 745.7 0.0 (1,870.4) 4,145.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
CURRENT LIABILITIES:
Accounts payable 6.2 0.0 173.0 118.7 0.0 0.0 297.9
Intercompany payables 24.7 0.6 27.2 1.6 144.9 (199.0) 0.0
Customers' deposits 0.0 0.0 104.1 0.0 0.0 0.0 104.1
Taxes payable 0.0 0.0 6.3 3.8 0.0 0.0 10.1
Accrued interest 1.8 0.0 55.8 12.8 0.0 0.0 70.4
Overrecovered utility fuel costs 0.0 0.0 22.2 0.0 0.0 0.0 22.2
Other 2.7 0.0 51.8 29.9 0.0 1.4 85.8
---------- ---------- ---------- ---------- ---------- ---------- ----------
35.4 0.6 440.4 166.8 144.9 (197.6) 590.5
Notes payable 0.0 0.0 47.3 188.9 0.0 0.0 236.2
Current portion of long-term debt 0.0 0.0 91.6 54.3 0.0 0.0 145.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
35.4 0.6 579.3 410.0 144.9 (197.6) 972.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes (13.7) 0.0 563.2 45.9 0.0 0.0 595.4
Unamortized investment tax credits 0.0 0.0 77.2 0.6 0.0 0.0 77.8
Other postretirement benfit costs 1.4 0.0 112.9 1.8 0.0 0.0 116.1
Other 19.2 0.0 186.8 47.0 0.0 0.0 253.0
---------- ---------- ---------- ---------- ---------- ---------- ----------
6.9 0.0 940.1 95.3 0.0 0.0 1,042.3
---------- ---------- ---------- ---------- ---------- ---------- ----------
$1,904.2 $0.6 $4,928.1 $1,251.0 $144.9 $(2,068.0) $6,160.8
======= ======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
FLORIDA PROGRESS CORPORATION AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Florida Progress Florida Progress Florida
Progress Provisional Power Capital FPC Progress
Corp. Holdings, Inc. Corp. Holdings Del,Inc. Elim. Consol.
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT BEGINNING OF YEAR $567.0 $0.0 $763.1 ($135.9) $0.0 ($627.2) $567.0
Net Income (loss) 281.7 0.0 248.6 37.9 0.0 (286.5) 281.7
Dividends paid (207.8) 0.0 (196.0) (52.8) 0.0 248.8 (207.8)
---------- ---------- ---------- ---------- ---------- ---------- ----------
BALANCE AT END OF YEAR $640.9 $0.0 $815.7 ($150.8) $0.0 ($664.9) $640.9
========== ========== ========== ========== ========== ========== ==========
</TABLE>
Exhibit 99.(B)
PROGRESS CAPITAL HOLDINGS AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Progress
Progress Progress Progress Progress- Progress Progress Electric Capital
Capital Energy Holdings, Centrus PIH, Telecommuni- Reinsurance Fuels Holdings
Holdings Corp. Inc. Inc. Inc. cations, Inc. Co., Ltd. Corp. Elim. Consol.
-------- -------- -------- --------- ----- ------------- ----------- -------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Electric utility $0.0 $0.0 $ 0.0 $ 0.0 $0.0 $0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0
Diversified 44.1 14.0 (1.6) (1.0) (0.6) 0.0 0.0 1,229.8 (44.0) 1,240.7
-------- ------- ------- ------ ------- -------- ------------ --------- ------ --------
44.1 14.0 (1.6) (1.0) (0.6) 0.0 0.0 1,229.8 (44.0) 1,240.7
EXPENSES: -------- ------- ------- ------ ------- -------- ------------ --------- ------ --------
Electric utility:
Fuel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Purchased power 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Energy conservation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Operation and maintenance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Depreciation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 --------
Taxes other than income taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
-------- ------- ------- ------ ------- ------- ------------ --------- ------ --------
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
-------- ------- ------- ------ ------- -------- ------------ --------- ------ --------
Diversified:
Cost of sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,094.0 0.0 1,094.0
Other 3.3 6.7 0.0 0.0 0.0 0.5 0.2 41.0 0.0 51.7
-------- ------- ------ ------- ------- --------- ------------ --------- ------ --------
3.3 6.7 0.0 0.0 0.0 0.5 0.2 1,135.0 0.0 1,145.7
-------- ------- ------- ------- ------- -------- ------------ --------- ------ --------
INCOME FROM OPERATIONS 40.8 7.3 (1.6) (1.0) (0.6) (0.5) (0.2) 94.8 (44.0) 95.0
-------- ------- ------- ------- ------- -------- ------------ --------- ------ --------
INTEREST EXPENSE AND OTHER:
Interest expense 49.5 0.4 0.0 0.0 0.0 0.0 0.0 32.7 (32.9) 49.7
Allowance for funds used
during construction 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other expense (income), net (34.9) 0.1 0.0 0.0 0.0 0.0 0.0 (2.7) 32.9 (4.6)
-------- ------- ------ ------- ------- -------- ------------ --------- ------ --------
14.6 0.5 0.0 0.0 0.0 0.0 0.0 30.0 (0.0) 45.1
-------- ------- ------- ------- ------- -------- ------------ --------- ------ --------
INCOME BEFORE INCOME TAXES 26.2 6.8 (1.6) (1.0) (0.6) (0.5) (0.2) 64.8 (44.0) 49.9
Income taxes (11.7) 2.6 (0.6) (0.4) (0.2) (0.2) 0.0 22.5 (0.0) 12.0
-------- ------- ------- ------- ------- -------- ------------ --------- ------ --------
NET INCOME $37.9 $4.2 ($1.0) ($0.6) ($0.4) ($0.3) ($0.2) $42.3 ($44.0) $37.9
====== ===== ====== ====== ======= ====== ========== ========= ======= =======
</TABLE>
<PAGE>
PROGRESS CAPITAL HOLDINGS AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Progress Progress Progress
Progress Progress Progress Progress Telecommuni- Rein- Electric Capital
Capital Energy Holdings, Centrus PIH, cations, surance Fuels Holdings
ASSETS Holdings Corp. Inc. Inc. Inc. Inc. Co., Ltd. Corp. Elim. Consol.
------- ------- ------- ------- ------- ---------- --------- ------- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service
and held for future use $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Less: Accumulated depreciation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Accumulated decommissioning
for nuclear plant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Accumulated dismantlement
for fossil plants 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Construction work in progress 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Nuclear fuel, net of amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Net electric utility plant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other property, net of depr. 0.0 0.0 0.0 0.0 0.0 41.1 0.0 503.0 0.0 544.1
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
0.0 0.0 0.0 0.0 0.0 41.1 0.0 503.0 0.0 544.1
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
CURRENT ASSETS:
Cash and equivalents 0.1 0.2 0.0 0.0 0.0 0.0 0.6 1.9 (0.2) 2.6
Accounts receivable, net 0.0 0.2 0.0 0.0 0.0 0.0 0.0 204.0 0.1 204.3
Intercompany receivables 367.7 0.0 0.8 0.2 0.0 0.0 0.0 28.1 (343.7) 53.1
Inventories, primarily at average cost:
Fuel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 21.5 (0.1) 21.4
Utility materials and supplies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Diversified materials 0.0 0.0 0.0 0.0 0.0 0.0 0.0 136.9 0.1 137.0
Income tax receivable 10.7 0.6 0.0 0.0 0.0 0.2 0.0 1.9 0.4 13.8
Other 1.5 0.3 0.0 0.0 0.0 0.0 0.0 13.0 0.2 15.0
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
380.0 1.3 0.8 0.2 0.0 0.2 0.6 407.3 (343.2) 447.2
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
OTHER ASSETS:
Investments:
Leases & loans receivable, net 7.7 0.0 0.0 0.0 0.0 0.0 0.0 28.2 (0.1) 35.8
Marketable securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Joint ventures and partnerships 130.8 13.3 0.6 0.6 0.0 0.0 0.0 7.6 (87.0) 65.9
Invest in consol affiliates 479.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (479.0) 0.0
Nuclear plt decommissioning fnd 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0 139.8 0.0 139.8
Deferred pur. power contract term. costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other 0.1 0.0 0.0 0.0 0.0 0.0 0.0 18.1 0.0 18.2
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
617.6 13.3 0.6 0.6 0.0 0.0 0.0 193.7 (566.1) 259.7
------- ------- ------- ------- ------ ------- ------- ------- ------- -------
$997.6 $14.6 $1.4 $0.8 $0.0 $41.3 $0.6 $1,104.0 ($909.3)$1,251.0
======= ======= ======= ======= ====== ======= ======= ======= ======= =======
</TABLE>
<PAGE>
PROGRESS CAPITAL HOLDINGS AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Progress Progress
Progress Progress Progress Progress Telecommuni- Progress Electric Capital
Capital Energy Holdings Centrus PIH, cations Reinsurance Fuels Holdings
CAPITAL AND LIABILITIES Holdings Corp. Inc. Inc. Inc. Inc. Co., Ltd. Corp. Elim. Consol.
------- ------- ------- ------- ------ -------- --------- ------- ------- --------
COMMON STOCK EQUITY:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common stock $201.2 $7.4 $3.7 $1.6 $0.6 $41.1 $3.8 $91.9 ($150.1) $201.2
Retained earnings (150.8) (4.4) (1.9) (0.6) (0.4) (0.3) (4.4) 142.9 (130.9) (150.8)
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
50.4 3.0 1.8 1.0 0.2 40.8 (0.6) 234.8 (281.0) 50.4
CUMULATIVE PREFERRED STOCK
OF FLORIDA POWER:
Without sinking funds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
LONG-TERM DEBT 694.0 0.0 0.0 0.0 0.0 0.0 0.0 461.3 (460.0) 695.3
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
TOTAL CAPITAL 744.4 3.0 1.8 1.0 0.2 40.8 (0.6) 696.1 (741.0) 745.7
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
CURRENT LIABILITIES:
Accounts payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 118.6 0.1 118.7
Intercompany payables 1.1 7.2 0.0 0.0 0.0 0.4 0.0 161.8 (168.9) 1.6
Customers' deposits 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Taxes payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.8 0.0 3.8
Accrued interest 12.3 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 12.8
Other 0.4 0.8 0.0 (0.2) (0.2) 0.1 0.0 28.4 0.6 29.9
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
13.8 8.0 0.0 (0.2) (0.2) 0.5 0.0 313.1 (168.2) 166.8
Notes payable 188.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 188.9
Current portion of long-term debt 50.0 0.0 0.0 0.0 0.0 0.0 0.0 4.3 0.0 54.3
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
252.7 8.0 0.0 (0.2) (0.2) 0.5 0.0 317.4 (168.2) 410.0
------- ------- ------- ------ ----- ------- --------- ------- ------- ----------
DEFERRED CREDITS AND OTHER
LIABILITIES:
Deferred income taxes (1.2) (2.4) (0.4) 0.0 0.0 0.0 0.0 49.8 0.1 45.9
Unamortized investment tax credits 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0 0.6
Other postretirement benefit costs 0.0 0.1 0.0 0.0 0.0 0.0 0.0 1.7 0.0 1.8
Other 1.7 5.9 0.0 0.0 0.0 0.0 1.2 38.4 (0.2) 47.0
------- ------- ------- ------ ----- ------- --------- ------- ------- -------
0.5 3.6 (0.4) 0.0 0.0 0.0 1.2 90.5 (0.1) 95.3
------- ------- ------- ------ ----- ------- --------- ------- ------- -------
$997.6 $14.6 $1.4 $0.8 ($0.0) $41.3 $0.6 $1,104.0 ($909.3) 1,251.0
======= ======= ======= ====== ===== ======= ========= ======= ======= =======
</TABLE>
<PAGE>
PROGRESS CAPITAL HOLDINGS AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
For the year ended December 31, 1998
(In millions)
<TABLE>
<CAPTION>
Progress Progress
Progress Progress Progress Progress Telecommuni- Progress Electric Capital
Capital Energy Holdings, Centrus PIH, cations Reinsurance Fuels Holdings
Holdings Corp. Inc. Inc. Inc. Inc. Co., Ltd. Corp. Elim. Consol.
------- ------- ---------- ----------- ------- --------- --------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT BEGINNING OF YEAR ($135.9) ($8.6) ($0.9) $0.0 $0.0 $0.0 ($4.2) $ 112.6 ($98.9) ($135.9)
Net Income (loss) 37.9 4.2 (1.0) (0.6) (0.4) (0.3) (0.2) 42.3 ($44.0) 37.9
Dividends to parent (52.8) 0.0 0.0 0.0 0.0 0.0 0.0 (12.0) 12.0 (52.8)
------- ------- --------- --------- ------- ------- -------- ------- ------- -------
BALANCE AT END OF YEAR ($150.8) ($4.4) ($1.9) ($0.6) ($0.4) ($0.3) ($4.4) $142.9 ($130.9) ($150.8)
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
