As filed with the Securities and Exchange Commission on January 24, 1996
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 22, 1996
<TABLE>
<CAPTION>
Exact name of Registrant as
Commission specified in its charter, address State of I.R.S. Employer
File No. of principal executive offices, telephone Incorporation Identification No.
<S> <C> <C> <C>
1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (813) 824-6400
1-3274 FLORIDA POWER CORPORATION Florida 59-0247770
3201 34th Street South
St. Petersburg, Florida 33711
Telephone (813) 866-5151
</TABLE>
The address of neither registrant has changed since the last report.
This combined Form 8-K represents separate filings by Florida Progress
Corporation and Florida Power Corporation. Information contained herein relating
to an individual registrant is filed by that registrant on its own behalf.
Florida Power makes no representations as to the information relating to Florida
Progress' diversified operations.
<PAGE>
Item 5. Other Events
In light of ongoing securities offerings by Florida Progress Corporation
("Florida Progress") and its subsidiaries, including Florida Power Corporation
("Florida Power") and Progress Capital Holdings, Inc., the following information
is being presented pending distribution of the combined Florida Progress and
Florida Power Annual Report on Form 10-K for the year ended December 31, 1996:
1. Year End Earnings. Florida Progress issued a news release dated January
22, 1996 and a related Investor Information report of even date therewith
reporting earnings for the year ended December 31, 1995. Copies of the news
release and report are being filed herewith as Exhibits 99.(a) and 99.(b),
respectively.
2. Florida Power President Retires. Florida Power issued a news release
dated January 17, 1996, reporting that Florida Power's President, Allen
J. Keesler, Jr., plans to retire, and that Joseph H. Richardson will be promoted
to President and Chief Operating Officer of Florida Power, effective April 1,
1996. A copy of the news release is being file herewith as Exhibit 99.(c).
Item 7. Financial Statements and Exhibits
(c) Exhibits:
Exhibit Number (by
reference to Item 601
of Regulation S-K) Description of Exhibit
99.(a) Florida Progress Corporation News Release dated January
22, 1996 regarding year end earnings.
99.(b) Florida Progress Corporation Investor Information
Report dated January 22, 1996.
99.(c) Florida Power Corporation News Release dated January
17, 1996 reporting retirement of Florida Power President.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FLORIDA PROGRESS CORPORATION
FLORIDA POWER CORPORATION
/s/ James V. Smallwood
By:____________________________
James V. Smallwood
Treasurer of each Registrant
Date: January 22, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Corporation News Release dated January 22,
1996 regarding year end earnings.
99.(b) Florida Progress Corporation Investor Information Report
dated January 22, 1996.
99.(c) Florida Power Corporation News Release dated January 17,
1996 reporting retirement of Florida Power President.
EXHIBIT 99.(A)
NEWS RELEASE
- ------------------------------------
FLORIDA PROGRESS CORPORATION
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports increase in 1995 earnings
ST. PETERSBURG, Fla. (January 22, 1996) -- Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported consolidated
1995 earnings of $238.9 million, compared with $212 million earned a year ago.
Revenues for 1995 totaled $3.06 billion, compared with $2.77 billion for 1994.
Earnings per share in 1995 were $2.50, an increase of 9.6 percent, compared with
$2.28 a share earned a year ago.
Improved operating results at Florida Power -- the largest subsidiary of Florida
Progress -- was the main reason for the company's higher earnings in 1995.
Florida Power earned $217.3 million, or $2.27 per share, on revenues of $2.27
billion in 1995, compared with earnings of $190.7 million, or $2.05 a share, on
revenues of $2.08 billion in 1994.
Revenues increased at Florida Power in 1995 because retail kilowatt-hour sales
increased by 7.8 percent compared to the prior year. The total number of
customers grew by about 28,000 in 1995.
A stronger economy and abnormal weather conditions contributed to a 5.4 percent
increase in average residential customer usage in 1995. Total industrial
kilowatt-hour sales increased by 8 percent for the year, due to
better-than-expected improvement in the phosphate industry.
Florida Power continued its emphasis on cost-control efforts in 1995. The
resulting savings offset higher nuclear decommissioning and depreciation
expenses. Also in 1995, the company began recognizing charges related to a
Florida Public Service Commission-approved amortization of costs for the
canceled Lake Tarpon to Kathleen transmission line.
In 1994, Florida Power recognized restructuring and voluntary early retirement
costs that reduced earnings by $11.5 million, or 12 cents a share. The utility
also wrote off an investment in a gas pipeline project that lowered 1994
earnings by $3.9 million, or 4 cents a share.
- more -
<PAGE>
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress' diversified operations, continued its solid performance in the face of
depressed market conditions for coal in 1995. Despite the lower demand for coal,
Electric Fuels had earnings of $24 million, or 25 cents per share, in 1995. This
compares with $22.6 million, or 25 cents per share, in 1994. Excellent
performance from Electric Fuels' inland marine and rail services operations
contributed to the increased earnings from this business unit.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.8 billion. Its principal subsidiary is Florida Power, the
state's second-largest electric utility with more than 1.2 million customers.
Diversified operations include coal mining and transportation, life insurance,
real estate, and lending and leasing.
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 December 31
1995 1994 1995 1994
----------------- ----------------- ------------------ ------------------
----------------- ----------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues $746,900,000 $682,900,000 $3,055,600,000 $2,771,500,000
Net Income $ 46,000,000 $ 46,000,000 $ 238,900,000 $ 212,000,000
============ ============ ============== ==============
Earnings Per Share (EPS):
Florida Power Corporation $ .43 $ .44 $ 2.27 $ 2.05
Diversified Operations .05 .05 .23 .23
====== ====== ====== ======
Consolidated $ .48 $ .49 $ 2.50 $ 2.28
====== ====== ====== ======
Average Common
Shares Outstanding 96,212,060 94,930,947 95,743,072 92,976,292
</TABLE>
EXHIBIT 99.(B)
FLORIDA PROGRESS CORPORATION
INVESTOR INFORMATION
- --------------------------------------------------------------------------
Analysts' Contacts:
Mark A. Myers, Manager, Investor Relations (813) 866-4245
John A. Serba, Senior Investor Communications Analyst (813) 866-4247
January 22, 1996
Florida Progress Corporation reports increase in 1995 earnings
Florida Progress Corporation, parent of St. Petersburg-based Florida Power
Corporation, today reported a 1995 earnings per share increase of 9.6 percent.
Earnings for the year were $238.9 million, or $2.50 a share, compared with $212
million, or $2.28 a share in 1994. The company had 1995 revenues totaling $3.06
billion, compared with $2.77 billion for 1994.
Significant items influencing 1995 operating results:
o An increase in retail energy sales at Florida Power due to a stronger
economy and more extremes in summer and winter weather.
o Continued customer growth -- up 2.2 percent this year, or about 28,000
over 1994.
o The utility's continued commitment to further reductions in operating
expenses.
Florida Power, the largest subsidiary of Florida Progress, earned $217.3
million, or $2.27 per share, on revenues of $2.27 billion for the year, compared
with earnings of $190.7 million, or $2.05 a share, on revenues of $2.08 billion
in 1994.
Retail kilowatt-hour sales at the utility increased 7.8 percent during 1995
compared with the prior year. A stronger economy and abnormal weather conditions
contributed to a 5.4 percent increase in average residential customer usage in
1995. Total industrial kilowatt-hour sales increased by 8 percent for the year,
due to better-than-expected improvement in the phosphate industry.
Earnings were helped by the ongoing cost-control initiatives at the utility.
This has occurred even with the addition of 28,000 customers during 1995. The
higher energy sales and the cost reductions offset increased expenses for
nuclear decommissioning and depreciation. In 1995, Florida Power absorbed a $6.9
million pre-tax charge for the Florida Public Service Commission-approved
amortization of costs of the canceled Lake Tarpon to Kathleen transmission line.
- more -
<PAGE>
In 1994, Florida Power recognized restructuring and voluntary early retirement
costs that reduced earnings by $11.5 million, or 12 cents a share. The utility
also wrote off an investment in a proposed gas pipeline project that lowered
1994 earnings by $3.9 million, or 4 cents a share.
In January 1995, the Florida Public Service Commission ordered Florida Power to
begin a three-year test of a revenue decoupling plan for residential sales. The
plan separates, or decouples, revenues from energy sales. Decoupling is designed
to reconcile the revenues to an authorized target level. For this first year of
the test, the decoupling mechanism lowered billed revenues by $17.8 million.
Florida Power does not expect the decoupling mechanism to materially affect
results for the three-year test period.
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress' diversified operations, continued its solid performance in the face of
depressed market conditions for coal in 1995. Despite the lower demand for coal,
Electric Fuels had earnings of $24 million, or 25 cents per share, in 1995. This
compares with $22.6 million, or 25 cents per share, in 1994. Excellent
performance from Electric Fuels' inland marine and rail services operations
contributed to the increased earnings from this business unit.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.8 billion. Its principal subsidiary is Florida Power, the
state's second-largest electric utility with more than 1.2 million customers.
Diversified operations include coal mining and transportation, life insurance,
real estate, and lending and leasing.
- more -
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME Page 3
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
(UNAUDITED) 1995 1994 1995 1994
-------- -------- -------- --------
REVENUES:
Electric utility $533.5 $493.5 $2,271.7 $2,080.5
Diversified 213.4 189.4 783.9 691.0
--------- --------- --------- ---------
746.9 682.9 3,055.6 2,771.5
EXPENSES: --------- --------- --------- ---------
Electric utility:
Fuel used in generation 97.9 85.7 433.7 431.9
Purchased power 109.8 77.7 440.7 294.6
Deferred fuel (2.3) 18.2 (1.7) (1.5)
Other operation 90.4 81.3 358.7 388.8
--------- --------- --------- ---------
Operation 295.8 262.9 1,231.4 1,113.8
Maintenance 29.2 32.0 114.1 122.9
Depreciation 76.4 66.6 293.7 261.5
Taxes other than income taxes 40.0 38.6 176.2 162.8
--------- --------- --------- ---------
441.4 400.1 1,815.4 1,661.0
--------- --------- --------- ---------
Diversified:
Cost of sales 174.7 157.7 642.3 571.2
Other 22.0 17.4 74.3 63.3
--------- --------- --------- ---------
196.7 175.1 716.6 634.5
--------- --------- --------- ---------
INCOME FROM OPERATIONS 108.8 107.7 523.6 476.0
--------- --------- --------- ---------
INTEREST EXPENSE AND OTHER:
Interest expense 34.5 35.9 142.0 144.8
Allowance for funds used during
construction (1.7) (2.6) (7.3) (10.9)
Preferred dividend requirements of
Florida Power 2.4 2.5 9.7 10.1
Other expense, net 1.8 2.7 3.9 10.3
--------- --------- --------- ---------
37.0 38.5 148.3 154.3
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 71.8 69.2 375.3 321.7
Income Taxes 25.8 23.2 136.4 109.7
--------- --------- --------- ---------
NET INCOME $46.0 $46.0 $238.9 $212.0
========= ========= ========= =========
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 96.2 94.9 95.7 93.0
========= ========= ========= =========
EARNINGS PER AVERAGE COMMON SHARE $0.48 $0.49 $2.50 $2.28
========= ========= ========= =========
Regarding these financial statements:
These are interim statements. Reference should be made to Florida Progress
Corporation's 1994 Annual Report to shareholders and S.E.C. Form 10-K for the
year ended December 31, 1994 and all subsequent reports filed with the
Securities and Exchange Commission. Neither this report nor any statement
contained herein is intended to constitute an offer of or solicitation of an
offer to buy any securities or is furnished for the purpose of promoting or
influencing the sale or purchase of securities.
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 4
(In millions)
December 31
-------------------------
(UNAUDITED) 1995 1994
----------- -----------
ASSETS
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and held for
for future use $5,867.5 $5,603.4
Less - Accumulated depreciation 2,179.7 1,981.6
Accumulated decommissioning for nuclear plant 165.2 135.2
Accumulated dismantlement for fossil plants 104.4 92.4
---------- ----------
3,418.2 3,394.2
Construction work in progress 131.8 222.1
Nuclear fuel, net of amortization of $348.7
in 1995 and $322.8 in 1994 59.1 52.9
---------- ----------
Net electric utility plant 3,609.1 3,669.2
Other property, net of depreciation of $189.9
in 1995 and $163.5 in 1994 455.2 420.9
---------- ----------
4,064.3 4,090.1
---------- ----------
CURRENT ASSETS:
Cash and equivalents 4.7 14.4
Accounts receivable, net 309.5 262.2
Current portion of leases and loans receivable 43.0 15.3
Inventories, primarily at average cost:
Fuel 63.0 75.2
Utility materials and supplies 101.3 110.4
Diversified materials 113.2 68.1
Other 44.8 42.8
---------- ----------
679.5 588.4
---------- ----------
OTHER ASSETS:
Investments:
Leases and loans receivable, net 340.8 438.0
Marketable securities 188.2 148.3
Nuclear plant decommissioning fund 161.1 123.6
Joint ventures and partnerships 73.7 74.5
Deferred insurance policy acquisition costs 106.4 91.9
Other 177.1 163.9
---------- ----------
1,047.3 1,040.2
---------- ----------
$5,791.1 $5,718.7
========== ==========
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $2,078.1 $1,984.4
Cumulative preferred stock of Florida Power 138.5 143.5
Long-term debt 1,685.2 1,859.6
---------- ----------
3,901.8 3,987.5
---------- ----------
CURRENT LIABILITIES:
Accounts payable 168.5 147.1
Customers' deposits 85.3 76.9
Income taxes payable 14.4 12.7
Accrued other taxes 15.9 14.8
Accrued interest 47.5 47.3
Other 103.4 69.3
---------- ----------
435.0 368.1
Notes payable - 55.3
Current portion of long-term debt 183.9 52.9
---------- ----------
618.9 476.3
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 694.3 744.1
Unamortized investment tax credits 101.5 110.0
Insurance policy benefit reserves 265.0 222.5
Other postretirement benefit costs 84.8 67.8
Other 124.8 110.5
---------- ----------
1,270.4 1,254.9
---------- ----------
$5,791.1 $5,718.7
========== ==========
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 5
(In millions)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
(UNAUDITED) 1995 1994 1995 1994
-------- -------- -------- --------
OPERATING ACTIVITIES:
Net income $46.0 $46.0 $238.9 $212.0
Adjustments for noncash items:
Depreciation and amortization 93.2 83.7 359.1 321.7
Deferred income taxes and
investment tax credits, net (6.8) 8.2 (80.0) (32.3)
Increase in accrued other
postretirement benefit costs 4.1 2.8 17.0 20.4
Net change in deferred insurance
policy acquisition costs (2.8) 1.3 (14.5) (10.4)
Net change in insurance policy
benefit reserves 11.1 5.5 42.5 36.0
Changes in working capital, net of
effects from acquisition or sale
of businesses:
Accounts receivable 30.0 24.4 (44.3) (17.4)
Inventories (29.8) (5.8) (29.8) (10.1)
Accounts payable 3.4 17.8 19.4 (4.2)
Income taxes payable (42.1) (32.6) 2.0 (29.6)
Accrued other taxes (55.5) (44.5) 0.9 3.8
Other 25.2 34.8 41.7 19.6
Other operating activities (10.7) (5.4) 10.1 23.0
--------- --------- --------- ---------
65.3 136.2 563.0 532.5
--------- --------- --------- ---------
INVESTING ACTIVITIES:
Property additions (including
allowance for borrowed funds used
during construction) (121.2) (121.9) (335.4) (368.1)
Proceeds from sales of properties
and businesses 3.5 2.0 13.8 16.3
Purchase of leases, loans and
securities (20.1) (5.1) (56.2) (74.1)
Proceeds from sale or collection of
leases, loans and securities 30.7 34.5 101.2 102.2
Acquisition of businesses (3.3) - (9.2) (17.1)
Distributions from (investments in)
joint ventures and partnerships, net (1.6) 3.4 (4.8) (1.3)
Other investing activities (2.7) (2.6) (11.0) (10.8)
--------- --------- --------- ---------
(114.7) (89.7) (301.6) (352.9)
--------- --------- --------- ---------
FINANCING ACTIVITIES:
Issuance of long-term debt - - - 103.7
Repayment of long-term debt (16.3) (31.0) (55.5) (86.7)
Increase (decrease) in commercial
paper with long-term support 106.0 7.4 1.0 (61.2)
Redemption of preferred stock (5.0) (5.0) (5.0) (5.0)
Sale of common stock 9.6 9.6 38.4 138.0
Dividends paid on common stock (48.6) (47.9) (193.4) (185.9)
Increase (decrease) in
short-term debt - 27.4 (55.3) (75.6)
Other financing activities (1.0) (0.9) (1.3) (1.6)
--------- --------- --------- ---------
44.7 (40.4) (271.1) (174.3)
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH
AND EQUIVALENTS (4.7) 6.1 (9.7) 5.3
Beginning cash and equivalents 9.4 8.3 14.4 9.1
--------- --------- --------- ---------
ENDING CASH AND EQUIVALENTS $4.7 $14.4 $4.7 $14.4
========= ========= ========= =========
<PAGE>
<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 6
Three Months Ended Percent Twelve Months Ended Percent
December 31 Positive December 31 Positive
1995 1994 (Negative) 1995 1994 (Negative)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Earnings Per Share:
Florida Power Corporation $0.43 $0.44 (2.3) $2.27 $2.05 10.7
--------- --------- --------- ---------
Electric Fuels Corporation 0.07 0.06 16.7 0.25 0.25 -
Mid-Continent Life Insurance Co. 0.01 0.02 (50.0) 0.07 0.08 (12.5)
Progress Credit Corporation (0.01) (0.01) - (0.05) (0.05) -
Corporate and other (0.02) (0.02) - (0.04) (0.05) 20.0
--------- --------- --------- ---------
Diversified 0.05 0.05 - 0.23 0.23 -
--------- --------- --------- ---------
Consolidated $0.48 $0.49 (2.0) $2.50 $2.28 9.6
========= ========= ========= =========
Avg. shares outstanding (millions) 96.2 94.9 1.4 95.7 93.0 2.9
Dividends per share $0.505 $0.505 - $2.020 $1.990 1.5
Book value per share:
Florida Power Corporation $18.19 $17.52 3.8
Consolidated $21.55 $20.85 3.4
</TABLE>
<TABLE>
<CAPTION>
December 31 December 31
December 31 1995 1994
1995 1994 Amount Percent Amount Percent
--------- --------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 84 84 Common stock $2,078.1 50.9 $1,984.4 48.5
Electric Fuels Corporation 9 8 Preferred stock 138.5 3.4 143.5 3.5
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,685.2 41.2 1,859.6 45.4
Progress Credit Corporation 3 4 Short-term capital 183.9 4.5 108.2 2.6
--------- --------- ----------------------------------------
Total 100 100 Total $4,085.7 100.0 $4,095.7 100.0
========= ========= ========================================
</TABLE>
<PAGE>
<TABLE>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 7
(In millions, except billing degree days)
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 Percent December 31 Percent
1995 1994 Change 1995 1994 Change
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $293.0 $265.8 10.2 $1,252.7 $1,142.7 9.6
Commercial 128.6 125.3 2.6 515.3 483.9 6.5
Industrial 49.0 44.9 9.1 189.3 173.1 9.4
Other retail sales 30.0 29.1 3.1 116.5 108.3 7.6
--------- --------- --------------------
500.6 465.1 7.6 2,073.8 1,908.0 8.7
Sales for resale 38.8 32.5 19.4 149.6 128.7 16.2
--------- --------- --------------------
539.4 497.6 8.4 2,223.4 2,036.7 9.2
Other electric revenues 3.8 5.6 (32.1) 51.5 50.6 1.8
Deferred fuel (9.7) (9.7) - (3.2) (6.8) -
--------- --------- --------------------
Total $533.5 $493.5 8.1 $2,271.7 $2,080.5 9.2
========= ========= ====================
Kilowatt-hour sales billed:
Residential 3,457.3 3,090.8 11.9 14,938.0 13,863.4 7.8
Commercial 2,146.5 2,067.5 3.8 8,612.1 8,252.1 4.4
Industrial 1,012.3 886.7 14.2 3,864.4 3,579.6 8.0
Other retail sales 535.3 511.6 4.6 2,085.0 1,980.1 5.3
--------- --------- --------------------
7,151.4 6,556.6 9.1 29,499.5 27,675.2 6.6
Sales for resale 882.1 617.6 42.8 2,903.1 2,339.4 24.1
--------- --------- --------------------
Total electric sales 8,033.5 7,174.2 12.0 32,402.6 30,014.6 8.0
========= ========= ====================
System Requirements (KWH) 7,896 7,073 11.6 33,667 31,174 8.0
Retail KWH Sales
(Billed & Unbilled) 7,069 6,380 10.8 29,745 27,598 7.8
Billing Degree Days:
Cooling 892 556 60.4 3,929 3,346 17.4
Heating 121 32 278.1 601 515 16.7
Note:
Total revenues include billed revenues and unbilled revenues that are accrued
for accounting purposes. Statistics for total kilowatt-hour sales include only
billed kilowatt-hour sales. Beginning in 1995, Florida Power was ordered by
state regulators to conduct a three-year test for residential revenue
decoupling. Under the plan, abnormal weather variances will no longer impact
earnings with respect to residential revenues.
</TABLE>
EXHIBIT 99.(C)
FLORIDA POWER CORPORATION
Corporate Communications
3201 34th Street South
St. Petersburg, FL 33711
(813) 866-4334
NEWS RELEASE
For more information contact:
Karen Raihill
(813) 866-5023
ALLEN J. KEESLER, JR., PLANS TO RETIRE
AS PRESIDENT AND CEO OF FLORIDA POWER CORPORATION
St. Petersburg, FL (January 17, 1996) -- Allen J. Keesler, Jr., 57,
President and Chief Executive Officer of Florida Power Corporation since 1988,
today announced he will end his 33-year career with the utility by retiring on
April 1.
Florida Progress Chairman and CEO Dr. Jack B. Critchfield said that
Keesler's upcoming retirement provides the opportunity for the company to plan
an orderly succession of top management for Florida Progress and Florida Power.
To begin that process, Critchfield said that he will relinquish his position as
Chairman of Florida Power. This responsibility will be assumed by Richard
Korpan, who will become Chairman and CEO of Florida Power as part of a
transition period of up to one year. Korpan also will retain his executive
responsibilities at Florida Progress as President and Chief Operating Officer.
Joseph H. Richardson, 46, will be promoted to President and Chief
Operating Officer of Florida Power, effective April 1. Richardson is currently
Senior Vice President, Energy Distribution.
"Over the last several years, Allen Keesler has made some tough, but
very necessary, decisions to prepare Florida Power for increasing changes in the
industry. Under his leadership the company has become much better positioned for
a more competitive marketplace. We appreciate all his contributions to this
company and wish him well," Critchfield said.
Keesler, who joined Florida Power in 1963, has seen Florida Power, the
second-largest electric utility in the state, grow from 325,000 customers to now
serving 1.3 million customers. In 1982 he became President and CEO of Talquin
Corporation, Progress' former real estate subsidiary, before returning to
Florida Power more than eight years ago as President. Earlier in his career he
had held several positions in engineering and operations.
Korpan joined Florida Progress in 1989 as Executive Vice President and
Chief Financial Officer. He has been President and COO of Progress since 1991.
He has 20 years of utility experience with Public Service Company of Colorado
and San Diego Gas & Electric Company.
(more)
Keesler plans retirement
Page 2
Richardson, who was Senior Vice President for Legal and Administrative
Services before assuming his current position, will continue to be responsible
for the energy distribution area, and now will have fossil generation, nuclear
generation, energy delivery, and several corporate staff functions reporting to
him. Richardson began his career at Florida Power in 1976 in the legal
department before transferring to Florida Progress in 1982. He served in several
staff and operating roles at Florida Progress and its subsidiaries before
rejoining Florida Power in 1993.
Florida Power is the largest subsidiary of Florida Progress Corp., a
Fortune 500 utility holding company with assets of $5.8 billion. Florida Power
serves a 20,000-square-mile service area in west central, central, and northern
Florida. Progress' diversified operations include coal mining and
transportation, life insurance, real estate, and lending and leasing.
96S/03S
