As filed with the Securities and Exchange Commission on October 17, 1997
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):
October 16, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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.
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 Quarterly Report on Form 10-Q for the period ended September 30,
1997:
Florida Progress issued an Investor News report and a media News Release
each dated October 16, 1997 reporting 1997 third quarter earnings. A copy of the
Investor News report and the media News Release are being furnished herewith as
Exhibits 99.(a) and 99.(b), respectively.
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 Investor News report dated October 16,
1997 reporting 1997 third quarter earnings.
99.(b) Florida Progress media News Release dated October 16,
1997 reporting 1997 third quarter earnings.
<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. The signature of the undersigned on behalf
of each listed company shall be deemed to relate only to matters having
reference to such company.
FLORIDA PROGRESS CORPORATION
FLORIDA POWER CORPORATION
/s/Pamela A. Saari
By:____________________________
Pamela A. Saari
Assistant Treasurer
of each Registrant
Date: October 16, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated October 16,
1997 reporting 1997 third quarter earnings.
99.(b) Florida Progress Media News Release dated October 16,
1997 reporting 1997 third quarter earnings.
EXHIBIT 99.(a)
Florida Progress Corporation
Investor News
[LOGO OMITTED]
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
Florida Progress' third-quarter earnings up 4 percent
St. Petersburg, Florida, October 16, 1997 -- Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported
earnings of $102.0 million or $1.05, per share for the third quarter of 1997,
compared with $98.1 million, or $1.01 per share, for the same period last year.
The earnings growth of four percent reflects steady customer growth at Florida
Power and higher earnings, primarily through expansion, from the company's
energy and transportation group, Electric Fuels Corporation.
Significant items influencing third-quarter results:
Solid utility growth - Strong growth in residential and commercial
customers enabled the utility to absorb higher costs associated with the
acquisition of a cogeneration facility and interest costs associated with
the extended outage at Florida Power's Crystal River Nuclear Plant.
Tiger Bay plant added to generation assets - In July, Florida Power
acquired a 220-megawatt cogeneration facility that is expected to result in
over $2 billion of long-term savings to customers over the next 30 years.
Utility operating & maintenance costs down - Total operating and
maintenance costs were down slightly despite charges related to the Tiger
Bay plant.
Electric Fuels' expanding operations - Expanding operations, primarily at
its rail services division, has improved earnings at Electric Fuels.
Florida Power, the largest subsidiary of Florida Progress, reported earnings of
$96.4 million for the quarter, or $.99 per share, on revenues of $706.9 million,
compared with earnings of $93.1 million, or $.96 per share, on revenues of
$694.7 million for the third quarter of 1996.
Florida Power's retail KWH sales were up 3.2 percent during the third quarter of
1997 when compared to the same period last year. The increase reflects customer
<PAGE>
growth of about two percent in Florida Power's two largest customer groups,
residential and commercial. In addition, Florida Power's wholesale KWH sales
were up 3.7 percent for the third quarter of 1997, compared with the same period
last year.
Addressing the long-term impact of cogeneration contracts has been a high
priority for Florida Power this year. In May, the Florida Public Service
Commission unanimously approved Florida Power's $445 million-purchase of the
220-megawatt Tiger Bay cogeneration plant located in Ft. Meade, Florida.
-- more --
The FPSC-approved purchase terminated the related purchase power contracts and
allowed Florida Power to record a regulatory asset of approximately $370 million
and add $75 million to its rate base.
In July, Florida Power issued $450 million of medium-term notes, primarily to
finance the acquisition of the Tiger Bay cogeneration facility. Notes were
issued with maturities ranging from two to 10 years at interest rates between
six and seven percent.
Florida Power continues to collect from ratepayers an amount equal to what it
would have been allowed to recover for capacity payments made in accordance with
the original Tiger Bay purchase power contract. Based on the contract's capacity
payment schedule, Florida Power should recover enough revenues by the year 2008
to fully amortize the regulatory asset and related interest charges.
The $75-million addition to rate base and other expenses including operating and
maintenance, depreciation, property taxes and interest charges are expected to
be recovered through Florida Power's growing base revenues. The utility's base
revenues increase largely from the addition of new retail customers,
particularly residential customers. During the third quarter of 1997, the
after-tax effect of these costs was approximately $2.5 million.
Florida Power's operating and maintenance costs were slightly lower for the
third quarter of 1997 when compared with the same period of 1996 despite the
additional operating and maintenance costs related to the Tiger Bay facility.
Additional operating and maintenance costs associated with Florida Power's
Crystal River nuclear plant are estimated to be $100 million for 1997. During
the second quarter of 1997, Florida Power recorded an accrual for $92 million so
that when combined with $8 million of nuclear-related charges incurred through
the first three months of the year, the utility's operating results would
reflect all additional operating and maintenance costs expected to be incurred
for 1997. Based on work performed to date and its current forecast, Florida
Power expects to remain within its $100-million forecast for 1997 incremental
nuclear operating and maintenance costs.
Florida Power recorded a $70-million charge to earnings in the second quarter of
1997 to recognize the total non-recoverable replacement power costs it expects
to incur for 1997 as a result of the extended outage at its nuclear plant. Based
on actual replacement power costs incurred through the third quarter of 1997,
the utility's second-quarter accrual should be adequate.
Electric Fuels earned $9.1 million, or $.09 a share, in the third quarter of
1997, compared with $6.5 million, or $.07 per share, in 1996. The 40 percent
increase in earnings largely was driven by improved results from Progress Rail
Services Corp., the principal subsidiary in Electric Fuels' rail services
business unit.
-- more --
In August 1996, Progress Rail, which is one of the largest integrated processors
and suppliers of railroad materials in the country, acquired the assets of
Mansbach Metal Company, a metal recycling and railcar scrapping business located
in Ashland, Kentucky. Growth of this business unit is likely to continue through
acquisitions and asset purchases as Progress Rail looks for opportunities to
expand outside the Southeast region of the United States.
Electric Fuels' third-quarter results also benefited from the expanding barge
fleet of its inland marine transportation group and improved operations in other
<PAGE>
energy-related businesses. MEMCO, Electric Fuels' principal subsidiary in the
inland marine transportation group, is on track this year to expand its fleet to
900 barges, up from about 700 at the end of 1996.
Despite improved second-and-third quarter results in 1997, when compared with
1996, MEMCO does not expect to completely offset by year-end the impact of
flooding along the Ohio and Mississippi rivers, which occurred during the first
quarter of 1997.
Florida Progress' 1997 third-quarter results for corporate and other diversified
activities were lower when compared with the same period in 1996 due to the sale
of Advanced Separation Technologies, Inc. in December 1996, and no earnings in
1997 from Mid-Continent Life Insurance Company.
OTHER NEWS
Restart activities continue at Florida Power's Crystal River nuclear unit which
is scheduled to return to service by the end of the year. Progress on restart
activities was discussed with Nuclear Regulatory Commission officials at the
September 25, 1997, restart panel meeting.
License submittals was one of a number of issues discussed at the September
meeting. Several submittals, including license amendment requests, must be filed
with and approved by the NRC prior to restart. License submittals required for
the eight design basis modifications have been filed with the NRC. To date,
Florida Power has completed 70 percent of its license amendment submittals and
remains focused on completing all license submittals to the NRC.
As identified on the attached schedule of significant restart activities (see
page 10), several NRC inspections have been scheduled during the final months of
Florida Power's restart plan. On October 6, 1997, the NRC began its Safety
System Functional Inspection of the high-pressure and low-pressure injection
systems. This inspection is scheduled to be completed by October 24.
Another important NRC inspection relates to the plant's emergency operating
procedures. During the extended outage, modifications have been made to the
plant's operating systems and the emergency operating procedures must be
modified to reflect those changes. In addition, the plant's licensed operators
are being trained in the new procedures. These operators are scheduled to take
the licensed operators re-qualification exam in November.
-- more --
The NRC has scheduled its Operational Safety Team Inspection to begin in late
November and end December 12. Among the issues the NRC will address, will be the
status of any open restart issues. Depending on the outcome of this inspection,
this should be the NRC's final major inspection prior to start-up.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: this news release contains forward looking statements, including
statements regarding the expenditures related to the restart of Florida Power's
Crystal River nuclear unit, the expected date of restart of the unit, the
recovery of operating and maintenance costs through growing base revenues, the
savings to customers expected to result from the acquisition of the Tiger Bay
facility, the expansion of the rail services group, the purchase of barges by
MEMCO and the ability of MEMCO to offset the impact of the first quarter floods.
These statements involve risks and uncertainties that could cause actual results
or outcomes to differ materially from expectations. Key factors that have a
direct impact on the actual results at Florida Power include various factors
that could impact the successful execution of the nuclear restart plan, such as
actions of regulatory bodies, timely completion of scheduled work by Florida
Power and outside contractors, the timely delivery of parts and materials and
potential new plant modifications not foreseen at this time which extend the
outage beyond 1997. Key factors influencing the future operations of Electric
Fuels and its subsidiaries include future market conditions for its rail
services and inland marine transportation groups, and the price of and market
for coal. These and other factors are described in the Company's Securities and
Exchange Commission filings.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.1 billion. Its principal subsidiary is Florida Power, the
<PAGE>
state's second-largest electric utility with about 1.3 million customers.
Diversified operations include coal mining, marine operations, rail services,
and life insurance.
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME Page 5
(In millions, except per share amounts)
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
------------------- ------------------- -------------------
(UNAUDITED) 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- --------
REVENUES:
<S> <C> <C> <C> <C> <C> <C>
Electric utility $706.9 $694.7 $1,857.9 $1,830.7 $2,420.8 $2,364.2
Diversified 215.6 184.3 609.4 552.3 821.4 749.9
--------- --------- --------- --------- --------- ---------
922.5 879.0 2,467.3 2,383.0 3,242.2 3,114.1
EXPENSES: --------- --------- --------- --------- --------- ---------
Electric utility:
Fuel 129.5 147.5 343.2 323.0 429.9 417.5
Purchased power 133.7 127.6 377.7 388.2 521.1 498.0
Energy conservation cost 21.7 14.3 49.3 51.1 60.8 70.1
Operations and maintenance 105.5 105.9 318.6 304.2 427.8 405.9
Extended nuclear outage - O&M
and replacement fuel costs - - 170.2 - 170.2 -
Depreciation 78.8 74.7 227.3 241.5 310.0 317.9
Taxes other than income taxes 53.2 50.7 149.9 143.1 190.4 183.1
--------- --------- --------- --------- --------- ---------
522.4 520.7 1,636.2 1,451.1 2,110.2 1,892.5
--------- --------- --------- --------- --------- ---------
Diversified:
Cost of sales 187.0 153.5 527.9 462.9 707.9 632.3
Provision for loss on
coal properties - - - - 40.9 -
Other 14.1 15.5 43.8 47.5 62.9 62.4
--------- --------- --------- --------- --------- ---------
201.1 169.0 571.7 510.4 811.7 694.7
--------- --------- --------- --------- --------- ---------
INCOME FROM OPERATIONS 199.0 189.3 259.4 421.5 320.3 526.9
--------- --------- --------- --------- --------- ---------
INTEREST EXPENSE AND OTHER:
Interest expense 42.3 34.6 112.4 103.4 144.9 137.3
Allowance for funds used during
construction (2.5) (1.9) (6.9) (5.5) (8.9) (7.2)
Preferred dividend requirements of
Florida Power 0.3 0.8 1.1 5.2 1.7 7.6
Gain on sale of business - - - - (44.2) -
Other expense (income) (1.6) (0.4) (1.9) (5.1) (1.0) (6.2)
--------- --------- --------- --------- --------- ---------
38.5 33.1 104.7 98.0 92.5 131.5
--------- --------- --------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES 160.5 156.2 154.7 323.5 227.8 395.4
Income Taxes 58.5 58.1 48.9 118.4 76.4 144.3
--------- --------- --------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 102.0 98.1 105.8 $205.1 $151.4 $251.1
DISCONTINUED OPERATIONS, NET
OF INCOME TAXES - - - (25.0) (1.3) (25.0)
--------- --------- --------- --------- --------- ---------
NET INCOME $102.0 $98.1 $105.8 $180.1 $150.1 $226.1
========= ========= ========= ========= ========= =========
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 97.1 97.0 97.1 96.8 97.0 96.6
========= ========= ========= ========= ========= =========
EARNINGS PER AVERAGE COMMON SHARE
CONTINUING OPERATIONS $1.05 $1.01 $1.09 $2.12 $1.56 $2.60
DISCONTINUED OPERATIONS - - - (0.26) (0.01) (0.26)
--------- --------- --------- --------- --------- ---------
$1.05 $1.01 $1.09 $1.86 $1.55 $2.34
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE>
Regarding these financial statements:
Current and prior periods reflect the recapitalization of the spin-off company,
Echelon International, and its associated treatment as discontinued operations.
These are interim statements. Reference should be made to Florida Progress
Corporation's 1996 Annual Report to shareholders. This report does not
constitute an offer to sell or the solicitation of an offer to buy any
securities.
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 6
(In millions)
September 30
-------------------------
(UNAUDITED) 1997 1996
----------- -----------
ASSETS
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and held $6,148.0 $5,921.2
for future use
Less - Accumulated depreciation 2,494.1 2,296.6
Accumulated decommissioning for nuclear plant 215.8 185.4
Accumulated dismantlement for fossil plants 127.6 115.4
---------- ----------
3,310.5 3,323.8
Construction work in progress 224.9 148.1
Nuclear fuel, net of amortization of $356.7
in 1997 and $356.7 in 1996 65.4 60.0
---------- ----------
Net electric utility plant 3,600.8 3,531.9
Other property, net of depreciation of $228.3
in 1997 and $170.2 in 1996 367.2 327.9
---------- ----------
3,968.0 3,859.8
---------- ----------
CURRENT ASSETS:
Cash and equivalents 15.2 17.8
Accounts receivable, net 361.7 327.2
Inventories, primarily at average cost:
Fuel 78.1 69.0
Utility materials and supplies 94.4 97.1
Diversified materials 133.0 128.3
Underrecovery of fuel cost 69.7 47.4
Deferred income taxes 13.4 34.3
Other 20.8 13.7
---------- ----------
786.3 734.8
---------- ----------
DISCONTINUED OPERATIONS:
Advances to discontinued operations - 102.7
Net assets of discontinued operations - 179.1
---------- ----------
- 281.8
---------- ----------
OTHER ASSETS:
Investments:
Loans receivable, net 35.1 31.2
Marketable securities 257.2 205.9
Nuclear plant decommissioning fund 248.1 187.7
Joint ventures and partnerships 49.1 37.9
Deferred insurance policy acquisition costs 123.7 120.1
Deferred purchased power contract
termination costs 369.8 -
Other 224.7 180.9
---------- ----------
1,307.7 763.7
---------- ----------
$6,062.0 $5,640.1
========== ==========
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $1,880.2 $2,121.0
Cumulative preferred stock of Florida Power 33.5 33.5
Long-term debt 2,343.4 1,727.4
---------- ----------
<PAGE>
4,257.1 3,881.9
---------- ----------
CURRENT LIABILITIES:
Accounts payable 221.8 193.8
Customers' deposits 96.0 87.7
Income taxes payable 38.4 64.9
Accrued other taxes 71.8 68.6
Accrued interest 47.7 44.3
Accrued nuclear outage operation
and maintenance costs 39.3 -
Other 81.6 100.1
---------- ----------
596.6 559.4
Notes payable 23.6 29.0
Current portion of long-term debt 15.0 59.8
---------- ----------
635.2 648.2
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 435.4 484.2
Unamortized investment tax credits 87.5 95.5
Insurance policy benefit reserves 369.0 309.0
Other postretirement benefit costs 106.6 96.4
Other 171.2 124.9
---------- ----------
1,169.7 1,110.0
---------- ----------
$6,062.0 $5,640.1
========== ==========
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 7
(In millions)
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
------------------- ------------------- -------------------
(UNAUDITED) 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- --------
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Income from continuing operations $102.0 $98.1 $105.8 $205.1 $151.4 $251.1
Adjustments for noncash items:
Depreciation and amortization 88.6 87.5 254.9 275.1 346.5 366.4
Extended nuclear outage - O&M
and replacement fuel costs - - 142.6 - 142.6 -
Gain on sale of business - - - - (44.2) -
Provision for loss on coal properties - - - - 40.9 -
Deferred income taxes and investment
tax credits, net 12.6 (10.9) (36.2) (37.2) (55.6) (34.0)
Increase in accrued other postretirement
benefit costs 2.7 8.5 6.6 11.9 10.2 15.9
Net change in deferred insurance policy
acquisition costs 0.2 (5.1) (2.8) (13.7) (3.6) (16.5)
Net change in insurance policy
benefit reserves 12.9 13.3 43.7 44.0 60.0 55.1
Changes in working capital, net of effects
from acquisition or sale of businesses:
Accounts receivable (32.3) (16.1) (91.7) (7.6) (48.7) 31.8
Inventories 13.5 13.6 (16.5) (17.9) (9.5) (48.0)
Underrecovery of fuel cost (14.7) 10.2 (61.3) (47.1) (96.5) (38.9)
Accounts payable 5.5 (0.1) 27.3 21.3 27.6 21.7
Income taxes payable 27.7 38.8 10.8 60.0 (25.9) 16.1
Accrued other taxes 20.1 14.7 58.3 52.9 3.1 (1.1)
Spending against nuclear O & M
outage accrual (33.1) - (33.1) - (33.1) -
Other 19.4 (6.7) 6.3 2.5 (9.7) 10.3
Other operating activities (30.8) - (25.0) 1.6 (45.8) (5.0)
--------- --------- --------- --------- --------- ---------
Cash provided by continuing operations 194.3 245.8 389.7 550.9 409.7 624.9
--------- --------- --------- --------- --------- ---------
Loss from discontinued operations - - - (25.0) (1.3) (25.0)
Adjustments for non-cash items - 3.7 - 11.1 6.3 1.9
--------- --------- --------- --------- --------- ---------
Cash provided by (used for) discontinued
operations - 3.7 - (13.9) 5.0 (23.1)
--------- --------- --------- --------- --------- ---------
194.3 249.5 389.7 537.0 414.7 601.8
--------- --------- --------- --------- --------- ---------
INVESTING ACTIVITIES:
Property additions (including allowance for
borrowed funds used during construction) (100.2) (56.6) (288.7) (192.0) (360.7) (311.6)
Purchases of loans and securities, net
(including (issuance) repayment of
Echelon note) (14.2) (10.9) (2.4) (25.1) (47.7) (40.8)
Proceeds from sales of properties and businesses 4.4 0.9 8.6 7.0 62.7 10.5
Acquisition of businesses (8.9) (41.9) (23.2) (45.1) (31.9) (48.4)
Acquisition of cogeneration facility and (445.0) - (445.0) - (445.0) -
contract termination costs
Distributions from (investments in) joint
ventures and partnerships, net (10.9) (3.4) (23.5) (4.6) (28.3) (5.0)
Investing activities of discontinued operations - 23.2 - 35.2 21.3 58.7
Other investing activities (7.6) (6.5) (17.3) (24.5) (20.4) (27.2)
--------- --------- --------- --------- --------- ---------
(582.4) (95.2) (791.5) (249.1) (850.0) (363.8)
--------- --------- --------- --------- --------- ---------
FINANCING ACTIVITIES:
Issuance of long-term debt 447.7 118.0 447.7 118.0 507.7 118.0
Repayment of long-term debt (12.0) (187.7) (34.2) (189.8) (34.8) (206.0)
Increase (decrease) in commercial paper with
long-term support 68.9 (52.0) 130.6 (5.3) 120.6 100.7
Redemption of preferred stock - - - (80.9) (25.5) (85.9)
Sale of common stock - - - 18.6 - 28.2
Equity contribuitions to discontinued operations - - - - (23.7) -
Dividends paid on common stock (51.0) (49.8) (152.9) (149.5) (202.9) (198.1)
<PAGE>
Increase (decrease) in short-term debt (70.5) 29.0 19.6 29.0 (5.3) 29.0
Financing activities of discontinued operations - (1.1) - (11.3) 96.5 (11.3)
Other financing activities 1.1 (1.7) 1.0 (3.2) 0.1 (4.1)
--------- --------- --------- --------- --------- ---------
384.2 (145.3) 411.8 (274.4) 432.7 (229.5)
--------- --------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (3.9) 9.0 10.0 13.5 (2.6) 8.5
Beginning cash and equivalents 19.1 8.8 5.2 4.3 17.8 9.3
--------- --------- --------- --------- --------- ---------
ENDING CASH AND EQUIVALENTS $15.2 $17.8 $15.2 $17.8 $15.2 $17.8
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 8
Three Months Ended Percent Nine Months Ended Percent Twelve Months Ended Percent
September 30 Positive September 30 Positive September 30 Positive
1997 1996 (Negative) 1997 1996 (Negative) 1997 1996 (Negative)
-------- -------- --------- -------- -------- --------- -------- -------- ---------
Earnings Per Share:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Florida Power Corporation $0.99 $0.96 3.1 $2.04 $1.96 4.1 $2.48 $2.39 3.8
-------- --------- -------- --------- -------- ---------
Electric Fuels Corporation 0.09 0.07 28.6 0.22 0.21 4.8 0.30 0.27 11.1
Mid-Continent Life Insurance Co. - - - - 0.02 (100.0) - 0.03 (100.0)
Corporate and other (0.03) (0.02) (50.0) (0.10) (0.07) (42.9) (0.13) (0.09) (44.4)
-------- --------- -------- --------- -------- ---------
Diversified Continuing 0.06 0.05 20.0 0.12 0.16 (25.0) 0.17 0.21 (19.0)
-------- --------- -------- --------- -------- ---------
Continuing Ops before non-recurring 1.05 1.01 4.0 2.16 2.12 1.9 2.65 2.60 1.9
Impact of CR3 outage - - - (1.07) - - (1.07) - -
Provision for loss on coal properties - - - - - - (0.26) - -
Gain on sale of business - - - - - - 0.24 - -
-------- --------- -------- --------- -------- ---------
Total Continuing Operations 1.05 1.01 4.0 1.09 2.12 (48.6) 1.56 2.60 (40.0)
Discontinued Operations - - - - (0.26) - (0.01) (0.26) -
-------- --------- -------- --------- -------- ---------
$1.05 $1.01 4.0 $1.09 $1.86 (41.4) $1.55 $2.34 (33.8)
======== ========= ======== ========= ======== =========
Avg. shares outstanding (millions) 97.1 97.0 0.1 97.1 96.8 0.3 97.0 96.6 0.4
Dividends per share $0.525 $0.515 1.9 $1.575 $1.545 1.9 $2.090 $2.050 2.0
Book value per share:
Florida Power Corporation $18.29 $18.95 (3.5)
Consolidated $19.37 $21.87 (11.4)
September 30 September 30
September 30 1997 1996
1997 1996 Amount Percent Amount Percent
-------- --------- ------------------------------------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 87 87 Common stock $1,880.2 43.8 $2,121.0 53.4
Electric Fuels Corporation 9 9 Preferred stock 33.5 0.8 33.5 0.8
Mid-Continent Life Insurance Co. 4 4 Long-term debt 2,343.4 54.6 1,727.4 43.5
-------- --------- Short-term debt 38.6 0.8 88.8 2.3
Total 100 100 ------------------------------------
======== ========= Total $4,295.7 100.0 $3,970.7 100.0
====================================
</TABLE>
Note: Current and prior periods reflect the recapitalization of the spin-off
company, Echelon International, and its associated treatment as discontinued
operations.
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 9
(In millions, except billing degree days)
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 Percent September 30 Percent September 30 Percent
1997 1996 Change 1997 1996 Change 1997 1996 Change
------- ------- ------- ------- ------- ------- ------- ------- -------
Revenues:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Residential $397.0 $393.6 0.9 $994.0 $1,005.9 (1.2) $1,292.4 $1,290.2 0.2
Commercial 156.7 155.4 0.8 426.3 402.2 6.0 561.4 530.8 5.8
Industrial 51.0 54.9 (7.1) 158.0 154.6 2.2 210.2 203.6 3.2
Other retail sales 34.9 34.3 1.7 98.8 92.1 7.3 132.6 122.1 8.6
--------- --------- -------------------- --------------------
639.6 638.2 0.2 1,677.1 1,654.8 1.3 2,196.6 2,146.7 2.3
Sales for resale 47.7 46.5 2.6 105.1 126.6 (17.0) 138.4 165.4 (16.3)
--------- --------- -------------------- --------------------
687.3 684.7 0.4 1,782.2 1,781.4 - 2,335.0 2,312.1 1.0
Other electric revenues 23.2 17.4 33.3 75.7 50.4 50.2 78.5 62.9 24.8
Deferred fuel (3.6) (7.4) - - (1.1) - 7.3 (10.8) -
--------- --------- -------------------- --------------------
Total $706.9 $694.7 1.8 $1,857.9 $1,830.7 1.5 $2,420.8 $2,364.2 2.4
========= ========= ==================== ====================
Kilowatt-hour sales billed:
Residential 4,801.4 4,682.2 2.5 11,461.4 12,142.8 (5.6) 14,800.0 15,600.1 (5.1)
Commercial 2,651.6 2,557.1 3.7 6,915.0 6,661.3 3.8 9,101.7 8,807.8 3.3
Industrial 1,058.5 1,094.5 (3.3) 3,182.5 3,195.2 (0.4) 4,211.0 4,207.5 0.1
Other retail sales 629.8 602.8 4.5 1,717.0 1,641.8 4.6 2,306.9 2,177.1 6.0
--------- --------- -------------------- --------------------
9,141.3 8,936.6 2.3 23,275.9 23,641.1 (1.5) 30,419.6 30,792.5 (1.2)
Sales for resale 700.4 804.0 (12.9) 1,539.4 2,085.7 (26.2) 2,161.4 2,967.8 (27.2)
--------- --------- -------------------- --------------------
Total electric sales 9,841.7 9,740.6 1.0 24,815.3 25,726.8 (3.5) 32,581.0 33,760.3 (3.5)
========= ========= ==================== ====================
System Requirements (KWH) 10,617 10,230 3.8 26,672 27,037 (1.4) 34,350 34,934 (1.7)
KWH Sales (Billed & Unbilled):
Retail 9,216 8,930 3.2 23,742 23,732 - 30,623 30,793 (0.6)
Wholesale 859 828 3.7 1,755 2,199 (20.2) 2,212 2,944 (24.9)
Billing Degree Days:
Cooling 2,220 2,252 (1.4) 2,715 3,071 (11.6) 3,326 3,963 (16.1)
Heating - - - 309 761 (59.4) 407 882 (53.9)
</TABLE>
Note:
Revenues include amounts resulting from fuel, purchased power, and energy
conservation clauses; which are designed to permit full recovery of these costs.
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. The statistic for retail and wholesale KWH sales
includes both billed and unbilled sales. Beginning in 1995, Florida Power was
ordered by state regulators to conduct a three-year test of residential revenue
decoupling. Under the plan, abnormal weather variances will no longer impact
earnings with respect to residential revenues.
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Crystal River Nuclear Plant
Key Restart Activities
As of October 15, 1997
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
LICENSE COMPLETION PERCENTAGE
Remaining modifications required by NRC SUBMITTALS TESTING TARGET COMPLETE
- ------------------------------------------------------------------------------------------------------------
Emergency diesel generator loading. COMPLETE JUL - NOV NOV 50%
High pressure injection pump recirculation NONE OCT NOV 25%
to the reactor building sump.
Generic Letter 96-06 - Containment Penetrations COMPLETE APR - SEP OCT 70%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
System Checks and Power Ascension START FINISH COMMENTS
- ------------------------------------------------------------------------------------------------------------
System Lineups, Heatup & Testing JUL DEC 81 OF 105 SYSTEMS TURNED
Secondary Systems Testing SEP SEP COMPLETED SEPTEMBER 15
Startup & Power Escalation NOV DEC
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Other Significant Activities START FINISH COMMENTS
- ------------------------------------------------------------------------------------------------------------
NRC Inspections
- SSFI - High & low pressure injection systems OCT 5 OCT 23
- Emergency Operating Procedures OCT NOV
- Operational Safety Team Inspection DEC DEC
Open Restart Issues Approx. 50 percent have been
closed with 75 issues open.
- ------------------------------------------------------------------------------------------------------------
1. To be updated when results from October load tests are available.
</TABLE>
EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
[LOGO OMITTED]
Media Contact:
Phil Dean -- (813) 866-5779
Florida Progress reports increase in third-quarter earnings
ST. PETERSBURG, FL. (October 16, 1997) -- Florida Progress Corporation
(NYSE:FPC), the parent of St. Petersburg-based Florida Power Corporation,
reported third-quarter earnings of $102.0 million, or $1.05 per share. This
compares to $98.1 million, or $1.01 per share for the same period last year.
Revenues for the third quarter totaled $922.5 million, compared with $879.0
million for the third quarter of 1996.
<PAGE>
Florida Power Corporation earned $96.4 million, or $.99 per share, on revenues
of $706.9 million in the third quarter. This compared with earnings of $93.1
million, or $.96 per share, on revenues of $694.7 million in the third quarter
of 1996. Retail KWH sales were up 3.2 percent on customer growth of about two
percent among Florida Power's residential and commercial customers. In addition,
higher sales to wholesale customers also contributed to the improved earnings.
Operating and maintenance expenses for Florida Power were slightly lower for the
third quarter of 1997 compared to the same period last year. This was achieved
despite the purchase of the 220-megawatt Tiger Bay cogeneration facility in
July. The purchase of the cogeneration facility is expected to result in
long-term savings of over $2 billion to Florida Power customers during the next
30 years.
Work continues at Florida Power's Crystal River nuclear plant which is scheduled
to return to service by the end of the year. In May 1997, Florida Power
announced it expected to spend an additional $100 million in operating and
maintenance charges related to the extended outage of its only nuclear plant.
Based on the work performed to date and its current forecast, Florida Power's
forecast for total additional operating and maintenance charges remains
unchanged at $100 million.
Restart activities are continuing as Florida Power approaches the final months
of its restart plan. Florida Power's restart plan currently targets the end of
the year for returning the nuclear plant to service. During these final months,
the Nuclear Regulatory Commission will conduct several key inspections to
determine whether the nuclear plant is ready to be returned to service.
-- more --
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, earned $9.1 million, or $.09 per share during the third quarter. This
compared with earnings of $6.5 million, or $.07 per share for the same period
last year. The forty percent increase in earnings was largely due to
acquisitions made by Progress Rail, the principal subsidiary in Electric Fuels'
rail services business unit, that were not fully reflected in operating results
for the comparable period in 1996.
Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $6.1 billion. Its principal subsidiary, Florida
Power Corporation, is the second-largest investor-owned electric utility in the
state. It currently serves approximately 1.3 million customers. Its other
primary subsidiary, Electric Fuels Corporation, is an energy and transportation
company with interests in coal mining, marine transportation and rail services.
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
September 30 September 30
1997 1996 1997 1996
------------ -------------- -------------- ------------
------------ -------------- -------------- ------------
<S> <C> <C> <C> <C>
Revenues $922,500,000 $ 879,000,000 $3,242,200,000 $3,114,100,000
------------ -------------- -------------- --------------
Income from continuing operations
before non-recurring items 102,000,000 98,100,000 257,600,000 251,100,000
Non-recurring items -- -- (106,200,000)
------------- -------------- --------------- -------------
Income from continuing
operations 102,000,000 98,100,000 151,400,000 251,100,000
Discontinued operations -- -- (1,300,000) (25,000,000)
------------- -------------- --------------- --------------
Net Income $102,000,000 $ 98,100,000 $ 150,100,000 $ 226,100,000
============= ============== =============== ==============
<PAGE>
Earnings Per Share (EPS):
Income from continuing operations $ 1.05 $ 1.01 $ 2.65 $ 2.60
before non-recurring items
Non-recurring items -- -- (1.09) --
------- ------- ------- ---------
Continuing operations 1.05 1.01 1.56 2.60
Discontinued operations -- -- (.01) (.26)
------- ------- ------- ------
Consolidated $ 1.05 $ 1.01 $ 1.55 $ 2.34
======= ======= ======= ======
Average Common
Shares Outstanding 97,061,543 97,003,473 97,045,345 96,626,932
</TABLE>
Current and prior periods reflect the recapitalization of the spin-off company,
Echelon International, and its associated treatment as discontinued operations.
Non-recurring items include, costs associated with the extended nuclear outage,
provision for loss on coal properties and a gain on sale of business.
###
