Filed by CP&L Energy, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Florida Progress Corporation
Commission File No. 333-40836
On September 27, 2000, CP&L Energy, Inc. made the following presentation at the
NYSSA Electric Utility Industry Conference in New York, NY.
<PAGE>
[Photograph of New York City skyline appears in background of slide]
NYSSA Electric Utility
Industry Conference
New York, NY
September 27, 2000
================================================================================
CP&L Energy, Inc.
================================================================================
Peter M. Scott III
Executive V.P. & CFO
<PAGE>
Agenda
================================================================================
o Overview
o Merger status
o Primary corporate objectives
o Four lines-of-business
o Our commitment
<PAGE>
CP&L overview
================================================================================
o 1.2 million electric
customers
o 160,000 natural gas [Graphic of map of N.C. and S.C.
customers indicating CP&L service territory]
[Graphic of shaded box for map
legend] CP&L Service Territory
o 30,000 square mile
service territory
o 11,000 MW generating
capability
<PAGE>
Florida Progress update
================================================================================
[Graphic of map of Florida] o 1.4 million electric
indicating FPC service territory] customers
[Graphic of shaded box for
map legend] FPC Service
Territory o 20,000 square mile service
territory
o 8,300 MW generating
capability
<PAGE>
Two high-quality energy companies
================================================================================
As of 12/31/99 Florida
(Dollars in millions) CP&L Progress
--------------------------------------------------------------------------------
Market Value $4,858 $4,166
Total Assets $9,494 $6,528
1999 Revenues $3,358 $3,845
1999 EBIT $841 $575
1999 Net Income $382 $315
Generation Capacity (MW's) 10,283 8,267
Customers (000's) 1,400 1,400
<PAGE>
A growing service territory
================================================================================
[Graphic of map of the United States indicating levels of population growth]
Forecast population growth
2000 - 2005
[Graphic of shaded boxes for map legend]
[ ] High
[ ] Medium
[ ] Low
<PAGE>
Major subsidiaries
================================================================================
[CP&L LOGO] [srs LOGO] [NCNG LOGO]
[FLORIDA [Energy [Progress teleCOM LOGO]
PROGRESS Ventures The relationship you can rely on.
CORPORATION LOGO]
LOGO]
[Electric Fuels Corp. LOGO]
<PAGE>
Merger status
================================================================================
--------------------------------------------------------------------------------
Approval Required
-----------------
Securities Exchange Commission
Closing expected in fourth quarter
--------------------------------------------------------------------------------
<PAGE>
Deregulation update
================================================================================
North Carolina
--------------
Study Commission recommendation
o Rate freeze until 2004
o Full access in 2006
o Legislation in 2001
South Carolina
--------------
Legislative study groups
Florida
-------
Study commission report expected December 2001
<PAGE>
Primary corporate objectives
================================================================================
[Strategic]
[Financial]
[Operational]
<PAGE>
Primary corporate objectives
================================================================================
[Strategic]
o Focus on four lines-of-business
o Build/retain sound regulatory platforms
o Divest non-core businesses (at opportune time)
<PAGE>
Primary corporate objectives
================================================================================
[Financial]
o Maximize cash flow from operations
o Deploy capital efficiently
o Rebuild balance sheet
<PAGE>
Primary corporate objectives
================================================================================
Post-closing Balance Sheet
Before After
(Dollars in billions) Close Close Target
--------------------------------------------------------------------------------
Leverage 51.0% 65.6% 55%
Total Debt $3.6 $9.7 N/A
Total Assets $9.9 $19.9 N/A
Equity $3.6 $5.7 N/A
<PAGE>
Primary corporate objectives
================================================================================
[Operational]
o Maintain top quartile performance
o Provide reliable/responsive customer service
o Continue building managerial strength
<PAGE>
Four lines-of-business
================================================================================
[Upstream Energy]
[Strategic] [Electricity Transmission]
[Financial] [Graphic of arrow containing [Downstream
the words-Lines of Business] Energy Delivery
Plus Services]
[Operational] [Fiber Network]
<PAGE>
Four lines-of-business
================================================================================
[Upstream Energy]
o Prepare for deregulation
o Build merchant capability
o Create right portfolio in right locations
o Manage risks
<PAGE>
Energy Ventures: regions of focus
===================================================================
Low 5 Top 5
Top 5 MW Capacity Energy-only
Growth Margin Clearing Price
-------------------------------------------------------------------
SERC X X X
-------------------------------------------------------------------
Florida X X X
-------------------------------------------------------------------
TVA X X
-------------------------------------------------------------------
<PAGE>
Energy Ventures: synthetic fuel opportunity
===================================================================
Key Statistics Criteria Our Approach
-------------------------------------------------------------------
o 7 plants o Chemical o Compliance
change
o PLRs
o 10-15 million o In-service
tons/year date o Sales
capacity
o Market
acceptance
<PAGE>
Four lines-of-business
================================================================================
------------------------
The right generation mix
------------------------
[Pie graphs appear here containing the following information]
CP&L Florida Progress New Company
Hydro 2% Hydro 1%
Gas/Oil 15% Gas/Oil 63% Gas/Oil 37%
Coal 52% Coal 28% Coal 41%
Nuclear 31% Nuclear 9% Nuclear 21%
[Graphic of shaded boxes for graph legend appear here]
[ ] Nuclear [ ] Coal [ ] Gas/Oil [ ] Hydro
<PAGE>
Four lines-of-business
================================================================================
[Electricity Transmission]
o Meet FERC commitment for RTO
o Select optimum value
o Maintain R-O-W option
<PAGE>
GridSouth
================================================================================
o Standalone RTO (for profit Transco)
o CP&L Energy, Duke Energy, and SCANA
O 22,000 + miles of transmission
o 3.75 million customers
<PAGE>
Four lines-of business
================================================================================
[Downstream Energy Delivery Plus Services]
o Establish reasonable codes of conduct
o Provide value-added services
o Get delivery tariff right
o Maintain DG/technology options
<PAGE>
Premier power tariff
================================================================================
o First of its kind in the United States
o Standby power reliability
O 13 MW on rate
o Potential peak resource
<PAGE>
Four lines-of business
================================================================================
[Fiber Network]
o Build out system
o Target right customers/locations
o Establish marketing/service delivery strength
o Leverage electric/gas distribution business
- Customers
- Infrastructure
<PAGE>
A growing market
================================================================================
The U.S. Market for Wholesale Network Services
[Graphic of shaded boxes for map legend]
[ ] Southeast Market
[ ] Total Market
[BAR CHART APPEARS HERE CONTAINING THE FOLLOWING INF0RMATION]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total Market
(billions) $6.4 $8.1 $10.0 $12.0 $14.2 $16.5 $18.9 $21.2 $23.6 $26.0 $28.7
Southeast Market
(billions) $1.3 $1.6 $2.0 $2.4 $2.8 $3.3 $3.8 $4.2 $4.7 $5.2 $5.7
</TABLE>
<PAGE>
Strong regional fiber system
================================================================================
o 3000 route miles; 110,000 fiber miles
o $175 million assets
O $50 million revenues
[Graphic of map from Washington,
D.C. to Florida indicating fiber
network route]
[Map legend]
-- Progress teleCom Fiber Network
== Leased/Partnership Network
<PAGE>
Electric T&D Vs. Telecom
================================================================================
Similarities Differences
o Asset-based o Territory not limited
by franchises
o Infrastructure build-
out in advance of o Market-based pricing
customer revenues
o Demand exploding
o Reliability focus
o Fast rate of
o Scale requirements technological change
o Systems and back office
<PAGE>
Another convergence opportunity
================================================================================
[Energy [Infrastructure]
Delivery] o Reliability
o Responsiveness
[Graphic of arrow o Service
containing the
word: Convergence]
[Fiber
Network]
<PAGE>
================================================================================
The end result
<PAGE>
Our commitment
================================================================================
o Superior total shareholder return
o $3.25 to $3.35/share in 2001
o EPS growth at 7% to 8% + a bankable dividend
<PAGE>
================================================================================
CP&L logo
---------
Helping your world work.(TM)
[End of text of presentation]
<PAGE>
In connection with the share exchange between CP&L Energy and Florida Progress,
CP&L Energy has filed with the Securities and Exchange Commission (the "SEC") a
Registration Statement on Form S-4 and Florida Progress has filed with the SEC a
definitive proxy statement each of which contains the definitive joint proxy
statement/prospectus of CP&L Energy and Florida Progress. The definitive joint
proxy statement/prospectus was first mailed on or about July 11, 2000 to
shareholders of CP&L Energy and Florida Progress. 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 CP&L Energy and Carolina
Power & Light Company with the SEC can be obtained by contacting 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 (CX1H), St. Petersburg, Florida 33733, telephone:
(800) 937-2640.
