As filed with the Securities and Exchange Commission on July 16, 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):
July 15, 1997
<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 Quarterly Report on Form 10-Q for the period ended June 30, 1997:
Earnings. Florida Progress issued an Investor News report and a media
News Release each dated July 15, 1997 reporting 1997 second 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.
Public Service Commission. The Florida Public Service Commission ("FPSC")
is conducting an investigation concerning matters arising out of Florida Power's
recent disclosure to the FPSC that a Florida Power employee who had been
involved in several recent FPSC dockets involving cogeneration matters
(including the approval of Florida Power's acquisition of the Tiger Bay
Cogeneration facility) had recently become engaged to be married to a former
FPSC staff attorney who also participated in a number of the same matters on
behalf of the FPSC. The FPSC had been unaware of the attorney's involvement
with the Florida Power employee. The FSPC has determined that it should review
its decisions made in the Pasco and Orlando cogeneration dockets so as to
provide parties an opportunity to present information to it concerning any bias
in the information presented by the attorney to the FPSC in rendering a
decision. In the absence of a showing of bias in that information, no further
review on the merits would be necessary. The FPSC did not order a review of the
Tiger Bay cogeneration facility buyout docket, given that the case was
stipulated by all parties and the possibility of bias appeared unlikely. The
FPSC will also rehear the Lake cogeneration matter on a number of issues
including the bias issue discussed above.
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 July 15,
1997 reporting 1997 second quarter earnings.
99.(b) Florida Progress media News Release dated July 15,
1997 reporting 1997 second 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. 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: July 15, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated July 15,
1997 reporting 1997 second quarter earnings.
99.(b) Florida Progress media News Release dated July 15,
1997 reporting 1997 second quarter earnings.
EXHIBIT 99.(a)
[CORPORATE LOGO OMITTED]
Florida Progress Corporation
Investor News
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
Florida Progress reports second-quarter loss resulting from a one-time charge
for nuclear outage costs
St. Petersburg, Florida, July 15, 1997 -- Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported a
loss of $38.2 million or $.39 a share for the second quarter of 1997. The loss
for the quarter was due to recording $162 million for incremental charges
associated with the extended outage of Florida Power's Crystal River nuclear
plant. Excluding the impact of the extended outage, Florida Progress' earnings
were $61.5 million, or $.63 a share, compared with $58.8 million or $.61 a share
from continuing operations for the prior-year quarter.
Significant items influencing second-quarter results:
o Nuclear outage costs - Florida Power recorded $92 million in nuclear
outage operating and maintenance costs in the second quarter of 1997.
Florida Power also recorded a $70 million charge for non-recoverable
replacement power costs.
o Higher operating expenses at Florida Power - Operating and maintenance
costs were up for the quarter because of planned fossil outage costs,
service reliability improvements and costs associated with a new union
contract.
o Electric Fuels' earnings jumped 37 percent - Electric Fuels Corporation,
the Florida Progress energy and transportation subsidiary, had
second-quarter earnings of $9.2 million, compared with $6.7 million a year
ago.
Florida Power, the largest subsidiary of Florida Progress, reported a loss of
$43.6 million for the quarter, or $.45 a share, after recording nuclear outage
costs. The utility's only nuclear plant has been down since September 1996 to
address design issues related to the plant's safety systems. In May 1997,
Florida Power announced that it could spend as much as $100 million in 1997 for
additional operating and maintenance costs related to the extended outage. In
the first quarter of this year, the utility spent approximately $8 million in
additional nuclear outage operating and maintenance expenses and recorded
another $92 million during the second quarter. This represents the total amount
of nuclear costs Florida Power expects to incur to return the plant to service
by the end of 1997.
In June 1997, the Florida Public Service Commission approved a settlement
agreement between Florida Power and all parties who intervened in Florida
Power's request to recover replacement power costs resulting from the extended
outage of its nuclear plant. Florida Power expects to incur approximately $170
million in replacement power costs through the end of 1997.
-- more --
<PAGE>
Page 2
Florida Progress Corporation
Investor News
Florida Power wrote off $70 million in non-recoverable replacement power costs
in the second quarter. Florida Power will collect approximately $35 million from
customers upon return of the plant to service. The remaining amount will be
amortized over a four-year period. The amortization will be offset by the
suspension of fossil fuel dismantlement accruals during the four-year period.
Attached is a schedule of significant Crystal River nuclear plant restart
activities that has been updated to reflect progress on major restart
activities. Some of the major accomplishments this quarter include completion of
the System Readiness Reviews, timely filing of license submittals for several
plant modifications and progress in reducing the backlog of maintenance
requests. Florida Power is on schedule to return the unit to service by the end
of 1997.
For the second quarter, Florida Power earned $56.1 million or $.58 per share
before recognizing the non-recurring costs associated with the extended nuclear
outage.
Florida Power's wholesale KWH sales were down 20 percent for the second quarter
of 1997, compared with the same period last year. The lower sales were largely
attributable to lower system requirements of the utility's wholesale customers
resulting from milder weather.
Retail KWH sales were up only 2 percent for the second quarter of 1997, compared
with a year ago. The effect of milder-than-normal weather is limited mainly to
Florida Power's wholesale sales because residential revenue decoupling
eliminates the earnings impact that abnormal weather has on residential sales.
Florida Power's residential revenue decoupling program is in the last year of a
three-year test that was ordered by the Florida Public Service Commission.
Continued customer growth combined with the adjustment for residential revenue
decoupling largely offset the effect mild weather had on the utility's base
revenues.
Non-nuclear operating and maintenance costs were up about $13 million in the
second quarter of 1997, compared with the same period last year. The higher
costs are due to planned fossil plant outages, a lump-sum payment resulting from
a new union contract and additional expenditures for tree trimming, pole and
cable treatments which are designed to improve service reliability. Despite the
higher non-nuclear operating and maintenance costs for the second quarter,
Florida Power does not expect to exceed its spending target for 1997.
Depreciation expense was lower for the second quarter of 1997, when compared
with the same quarter in 1996. This is due primarily to the write-off of two
oil-fired plants in the second quarter of 1996.
Electric Fuels earned $9.2 million, or $.10 a share, in the second quarter of
1997 compared with $6.7 million or $.07 per share, in 1996. The improved results
were realized from its inland marine transportation and rail services business
units. The strong results for the second quarter helped to offset some of the
adverse effects of the March flooding which lowered earnings for the first
quarter of 1997.
-- more --
<PAGE>
Page 3
Florida Progress Corporation
MEMCO, Electric Fuels' inland marine transportation subsidiary, has been
expanding its fleet of barges and tow boats that operate along the Ohio and
Mississippi rivers. During the second quarter of 1997, MEMCO had approximately
100 additional barges in service, compared with the same period in 1996.
The Rail Services group, which serves the country's major railroads, is
expanding through acquisitions and increased sales in its existing operations.
Improved earnings from this group for the second quarter were due primarily to
the acquisition of a recycling facility in August 1996 and increased production
at a new track work facility.
OTHER NEWS
In June 1997, Florida Progress filed an appeal with the Oklahoma Supreme Court
of the decision of an Oklahoma County District Court that Mid-Continent Life
Insurance Company, a Florida Progress subsidiary, remain in receivership. As of
June 30, 1997, Florida Progress' investment in Mid-Continent was approximately
$85 million. A decision from the Oklahoma Supreme Court is not expected before
the fourth quarter of 1997.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: this news release contains forward looking statements, including
expenditures related to the restart of Florida Power's Crystal River nuclear
unit and the expected date of restart of the unit. 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
company's ability to return the unit to service before the end of 1997 include
successful execution of the restart plan, actions of regulatory bodies, absence
of new plant modifications that extend the outage beyond 1997 and other factors
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 $5.5 billion. Its principal subsidiary is Florida Power, the
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 4
(In millions, except per share amounts)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 June 30 June 30
------------------- ------------------- -------------------
(UNAUDITED) 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Electric utility $597.2 $588.7 $1,151.0 $1,136.0 $2,408.6 $2,341.3
Diversified 200.1 184.9 393.8 368.0 790.1 746.2
--------- --------- --------- --------- --------- ---------
797.3 773.6 1,544.8 1,504.0 3,198.7 3,087.5
EXPENSES: --------- --------- --------- --------- --------- ---------
Electric utility:
Fuel 118.8 90.7 213.7 175.6 447.8 411.1
Purchased power 116.8 137.7 244.0 260.6 515.0 494.1
Energy conservation cost 16.6 17.1 27.6 36.8 53.4 79.5
Operations and maintenance 110.7 97.8 213.1 198.2 428.3 396.5
Extended nuclear outage - O&M
and replacement fuel costs 162.3 - 170.2 - 170.2 -
Depreciation 74.2 89.2 148.5 166.8 305.9 319.0
Taxes other than income taxes 48.6 45.2 96.7 92.4 187.9 180.8
--------- --------- --------- --------- --------- ---------
648.0 477.7 1,113.8 930.4 2,108.5 1,881.0
--------- --------- --------- --------- --------- ---------
Diversified:
Cost of sales 169.1 154.3 340.9 309.4 674.4 629.8
Provision for loss on
coal properties - - - - 40.9 -
Other 14.8 16.6 29.7 32.0 64.3 62.7
--------- --------- --------- --------- --------- ---------
183.9 170.9 370.6 341.4 779.6 692.5
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM OPERATIONS (34.6) 125.0 60.4 232.2 310.6 514.0
--------- --------- --------- --------- --------- ---------
INTEREST EXPENSE AND OTHER:
Interest expense 35.8 34.2 70.1 68.8 137.2 137.0
Allowance for funds used during
construction (2.3) (1.9) (4.4) (3.6) (8.3) (7.1)
Preferred dividend requirements of
Florida Power 0.4 2.1 0.8 4.4 2.2 9.2
Gain on sale of business - - - - (44.2) -
Other expense (income) (0.7) (1.4) (0.3) (4.7) 0.1 (9.2)
--------- --------- --------- --------- --------- ---------
33.2 33.0 66.2 64.9 87.0 129.9
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (67.8) 92.0 (5.8) 167.3 223.6 384.1
Income Taxes (29.6) 33.2 (9.6) 60.3 76.0 140.0
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING
OPERATIONS (38.2) 58.8 3.8 107.0 147.6 244.1
DISCONTINUED OPERATIONS, NET
OF INCOME TAXES - (25.0) - (25.0) (1.3) (25.0)
--------- --------- --------- --------- --------- ---------
NET INCOME (LOSS) ($38.2) $33.8 $3.8 $82.0 $146.3 $219.1
========= ========= ========= ========= ========= =========
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 97.1 96.8 97.0 96.6 97.0 96.4
========= ========= ========= ========= ========= =========
EARNINGS PER AVERAGE COMMON SHARE
CONTINUING OPERATIONS ($0.39) $0.61 $0.04 $1.11 $1.52 $2.53
DISCONTINUED OPERATIONS - (0.26) - (0.26) (0.01) (0.26)
--------- --------- --------- --------- --------- ---------
($0.39) $0.35 $0.04 $0.85 $1.51 $2.27
========= ========= ========= ========= ========= =========
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.
/TABLE
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 5
(In millions)
June 30
-------------------------
(UNAUDITED) 1997 1996
----------- -----------
ASSETS
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and held for $5,994.8 $5,892.2
for future use
Less - Accumulated depreciation 2,440.2 2,276.4
Accumulated decommissioning for nuclear plant 207.1 178.3
Accumulated dismantlement for fossil plants 127.9 112.5
---------- ----------
3,219.6 3,325.0
Construction work in progress 240.6 174.3
Nuclear fuel, net of amortization of $356.7
in 1997 and $352.6 in 1996 63.7 64.0
---------- ----------
Net electric utility plant 3,523.9 3,563.3
Other property, net of depreciation of $186.7
in 1997 and $164.7 in 1996 332.5 310.4
---------- ----------
3,856.4 3,873.7
---------- ----------
CURRENT ASSETS:
Cash and equivalents 19.1 8.8
Accounts receivable, net 326.7 298.2
Inventories, primarily at average cost:
Fuel 87.1 77.6
Utility materials and supplies 95.0 96.7
Diversified materials 138.1 129.8
Underrecovery of fuel cost 59.0 57.6
Deferred income taxes 60.8 32.5
Other 18.0 15.0
---------- ----------
803.8 716.2
---------- ----------
DISCONTINUED OPERATIONS:
Advances to discontinued operations - 127.1
Net assets of discontinued operations - 180.6
---------- ----------
- 307.7
---------- ----------
OTHER ASSETS:
Investments:
Loans receivable, net 35.0 30.7
Marketable securities 238.6 195.1
Nuclear plant decommissioning fund 232.5 183.3
Joint ventures and partnerships 53.2 35.8
Deferred insurance policy acquisition costs 123.9 115.0
Other 185.7 158.0
---------- ----------
868.9 717.9
---------- ----------
$5,529.1 $5,615.5
========== ==========
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $1,826.2 $2,073.0
Cumulative preferred stock of Florida Power 33.5 58.5
Long-term debt 1,826.5 1,687.0
---------- ----------
3,686.2 3,818.5
---------- ----------
CURRENT LIABILITIES:
Accounts payable 216.1 186.9
Customers' deposits 95.1 88.6
Income taxes payable 10.5 26.1
Accrued other taxes 51.6 53.8
Accrued interest 37.2 46.0
Accrued nuclear outage operation
and maintenance costs 72.4 -
Other 68.8 83.2
---------- ----------
551.7 484.6
Notes payable 94.2 -
Current portion of long-term debt 25.0 193.8
---------- ----------
670.9 678.4
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 462.7 490.5
Unamortized investment tax credits 89.5 97.5
Insurance policy benefit reserves 356.1 295.7
Other postretirement benefit costs 103.9 87.9
Other 159.8 147.0
---------- ----------
1,172.0 1,118.6
---------- ----------
$5,529.1 $5,615.5
========== ==========
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 6
(In millions)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 June 30 June 30
------------------- ------------------- -------------------
(UNAUDITED) 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Income (loss) from continuing operations ($38.2) $58.8 $3.8 $107.0 $147.6 $244.1
Adjustments for noncash items:
Depreciation and amortization 83.1 99.6 166.3 187.6 345.4 369.8
Extended nuclear outage - O&M
and replacement fuel costs 142.6 - 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 (36.5) (19.4) (48.8) (26.3) (79.1) (43.7)
Increase in accrued other postretirement
benefit costs 1.9 1.7 3.9 3.4 16.0 12.0
Net change in deferred insurance policy
acquisition costs (0.9) (6.4) (3.0) (8.6) (8.9) (14.5)
Net change in insurance policy
benefit reserves 14.8 17.9 30.8 30.7 60.4 52.9
Changes in working capital, net of effects
from acquisition or sale of businesses:
Accounts receivable (43.9) (3.0) (59.4) 8.5 (32.5) 4.8
Inventories (5.0) (34.5) (30.0) (31.5) (9.4) (42.6)
Underrecovery of fuel cost (23.6) (38.3) (46.6) (57.3) (71.6) (49.2)
Accounts payable 25.8 33.7 21.8 21.4 22.0 30.3
Income taxes payable (26.3) (17.8) (16.9) 21.2 (14.8) 4.1
Accrued other taxes 19.2 18.0 38.2 38.2 (2.3) 6.3
Other (10.9) (10.6) (13.1) (12.3) (14.3) 6.6
Other operating activities 4.1 12.0 5.8 23.1 (36.6) 24.2
--------- --------- --------- --------- --------- ---------
Cash provided by continuing operations 106.2 111.7 195.4 305.1 461.2 605.1
--------- --------- --------- --------- --------- ---------
Loss from discontinued operations - (25.0) - (25.0) (1.3) (25.0)
Adjustments for non-cash items - 19.9 - 7.4 10.0 (13.1)
--------- --------- --------- --------- --------- ---------
Cash provided by (used for) discontinued
operations - (5.1) - (17.6) 8.7 (38.1)
--------- --------- --------- --------- --------- ---------
106.2 106.6 195.4 287.5 469.9 567.0
--------- --------- --------- --------- --------- ---------
INVESTING ACTIVITIES:
Property additions (including allowance for
borrowed funds used during construction) (93.7) (64.7) (188.5) (135.4) (317.1) (319.6)
Purchases of loans and securities, net
(including (issuance) repayment of
Echelon note) 16.3 (2.4) 11.8 (14.2) (44.4) (32.9)
Proceeds from sales of properties and businesses 2.0 2.8 4.2 6.1 59.2 12.9
Acquisition of businesses (14.3) (3.2) (14.3) (3.2) (64.9) (6.6)
Distributions from (investments in) joint
ventures and partnerships, net (3.3) (1.2) (12.6) (1.2) (20.8) (2.9)
Investing activities of discontinued operations - 5.3 - 12.0 44.5 38.3
Other investing activities (4.8) (4.7) (9.7) (18.0) (19.3) (23.5)
--------- --------- --------- --------- --------- ---------
(97.8) (68.1) (209.1) (153.9) (362.8) (334.3)
--------- --------- --------- --------- --------- ---------
FINANCING ACTIVITIES:
Issuance of long-term debt - - - - 178.0 -
Repayment of long-term debt (0.7) (0.6) (22.2) (2.1) (210.5) (27.0)
Increase (decrease) in commercial paper with
long-term support 7.1 87.4 61.7 46.7 (0.3) 93.1
Redemption of preferred stock - (80.9) - (80.9) (25.5) (85.9)
Sale of common stock - 9.3 - 18.6 - 38.0
Equity contributions to discontinued operations - - - - (23.7) -
Dividends paid on common stock (50.9) (50.0) (101.9) (99.7) (201.7) (196.7)
Increase (decrease) in short-term debt 38.3 - 90.1 - 94.2 (41.1)
Financing activities of discontinued operations - - - (10.2) 95.4 (11.5)
Other financing activities 0.4 (0.8) (0.1) (1.5) (2.7) (2.8)
--------- --------- --------- --------- --------- ---------
(5.8) (35.6) 27.6 (129.1) (96.8) (233.9)
--------- --------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 2.6 2.9 13.9 4.5 10.3 (1.2)
Beginning cash and equivalents 16.5 5.9 5.2 4.3 8.8 10.0
--------- --------- --------- --------- --------- ---------
ENDING CASH AND EQUIVALENTS $19.1 $8.8 $19.1 $8.8 $19.1 $8.8
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 7
Three Months Ended Percent Six Months Ended Percent Twelve Months Ended Percent
June 30 Positive June 30 Positive June 30 Positive
1997 1996 (Negative 1997 1996 (Negative 1997 1996 (Negative)
-------- --------- -------- --------- --------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Earnings Per Share:
Florida Power Corporation ($0.45) $0.56 (180.4) ($0.02) $1.00 (102.0) $1.38 $2.31 (40.3)
--------- --------- --------- --------- --------- ---------
Electric Fuels Corporation 0.10 0.07 42.9 0.13 0.14 (7.1) 0.27 0.27 -
Mid-Continent Life Insurance Co. - 0.01 (100.0) - 0.02 (100.0) 0.01 0.04 (75.0)
Corporate and other (0.04) (0.03) (33.3) (0.07) (0.05) (40.0) (0.12) (0.09) (33.3)
--------- --------- --------- --------- --------- ---------
Diversified Continuing 0.06 0.05 20.0 0.06 0.11 (45.5) 0.16 0.22 (27.3)
--------- --------- --------- --------- --------- ---------
Continuing Ops before
non-recurring (0.39) 0.61 (163.9) 0.04 1.11 (96.4) 1.54 2.53 (39.1)
Provision for loss on coal
properties - - - - - - (0.26) - -
Gain on sale of business - - - - - - 0.24 - -
--------- --------- --------- --------- --------- ---------
Total Continuing Operations (0.39) 0.61 (163.9) 0.04 1.11 (96.4) 1.52 2.53 (39.9)
Discontinued Operations - (0.26) - - (0.26) - (0.01) (0.26) -
--------- --------- --------- --------- --------- ---------
($0.39) $0.35 (211.4) $0.04 $0.85 (95.3) $1.51 $2.27 (33.5)
========= ========= ========= ========= ========= =========
Avg. shares outstanding (millions) 97.1 96.8 0.3 97.0 96.6 0.4 97.0 96.4 0.6
Dividends per share $0.525 $0.515 1.9 $1.05 $1.03 1.9 $2.08 $2.04 2.0
Book value per share:
Florida Power Corporation $17.79 $18.35 (3.0)
Consolidated $18.82 $21.37 (11.9)
</TABLE>
<TABLE>
<CAPTION>
June 30 June 30
June 30 1997 1996
1997 1996 Amount Percent Amount Percent
--------- --------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Equity investments (percent):
Florida Power Corporation 87 87 $1,826.2 48.0 $2,073.0 51.7
Electric Fuels Corporation 9 9 33.5 0.9 58.5 1.5
Mid-Continent Life Insurance Co. 4 4 1,826.5 48.0 1,687.0 42.0
--------- --------- 119.2 3.1 193.8 4.8
Total 100 100 ---------------------------------------
========= ========= $3,805.4 100.0 $4,012.3 100.0
=======================================
Note: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its
associated treatment as discontinued operations.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 8
(In millions, except billing degree days)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 Percent June 30 Percent June 30 Percent
1997 1996 Change 1997 1996 Change 1997 1996 Change
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $306.3 $296.3 3.4 $597.0 $612.3 (2.5) $1,289.0 $1,264.4 1.9
Commercial 145.4 131.7 10.4 269.6 246.8 9.2 560.1 522.6 7.2
Industrial 55.1 51.9 6.2 107.0 99.7 7.3 214.1 197.5 8.4
Other retail sales 34.1 30.8 10.7 63.9 57.8 10.6 132.0 119.2 10.7
--------- --------- -------------------- --------------------
540.9 510.7 5.9 1,037.5 1,016.6 2.1 2,195.2 2,103.7 4.3
Sales for resale 20.3 37.1 (45.3) 57.4 80.1 (28.3) 137.2 174.9 (21.6)
--------- --------- -------------------- --------------------
561.2 547.8 2.4 1,094.9 1,096.7 (.2) 2,332.4 2,278.6 2.4
Other electric revenues 39.7 25.1 58.2 52.5 33.0 59.1 72.7 64.9 12.0
Deferred fuel (3.7) 15.8 - 3.6 6.3 - 3.5 (2.2) -
--------- --------- -------------------- --------------------
Total $597.2 $588.7 1.4 $1,151.0 $1,136.0 1.3 $2,408.6 $2,341.3 2.9
========= ========= ==================== ====================
Kilowatt-hour sales billed:
Residential 3,363.7 3,541.1 (5.0) 6,660.0 7,460.6 (10.7) 14,680.8 15,489.0 (5.2)
Commercial 2,269.0 2,215.3 2.4 4,263.4 4,104.2 3.9 9,007.2 8,734.2 3.1
Industrial 1,074.1 1,099.8 (2.3) 2,124.0 2,100.7 1.1 4,247.0 4,103.1 3.5
Other retail sales 569.8 558.2 2.1 1,087.2 1,039.0 4.6 2,279.9 2,141.3 6.5
--------- --------- -------------------- --------------------
7,276.6 7,414.4 (1.9) 14,134.6 14,704.5 (3.9) 30,214.9 30,467.6 (.8)
Sales for resale 307.1 529.1 (42.0) 839.0 1,281.7 (34.5) 2,265.0 3,305.6 (31.5)
--------- --------- -------------------- --------------------
Total electric sales 7,583.7 7,943.5 (4.5) 14,973.6 15,986.2 (6.3) 32,479.9 33,773.2 (3.8)
========= ========= ==================== ====================
System Requirements (KWH) 8,535 8,578 (.5) 16,055 16,808 (4.5) 33,963 34,677 (2.1)
Retail KWH Sales
(Billed & Unbilled) 7,739 7,585 2.0 14,526 14,803 (1.9) 30,336 30,580 (.8)
Billing Degree Days:
Cooling 470 819 (42.6) 495 819 (39.6) 3,358 3,864 (13.1)
Heating 12 108 (88.9) 309 761 (59.4) 407 882 (53.9)
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. The
statistic for retail 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.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Crystal River Nuclear Plant
Key Restart Activities
LICENSE COMPLETION PERCENTAGE
Physical Modifications - (8) design issues. SUBMITTALS FIELD WORK TARGET COMPLETE
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
1. Emergency feedwater system upgrades and diesel generator
load impact. COMPLETE MAY - AUG SEP 75%
2. Emergency diesel generator loading. COMPLETE MAR - SEP SEP 70%
3. Low pressure injection mission time. COMPLETE NONE JUN 90%
4. Reactor building spray pump net positive suction head. AUG APR - AUG AUG 90%
5. High pressure injection pump recirculation NONE SEP - OCT NOV 25%
to the reactor building sump.
6. High pressure injection system modifications to COMPLETE MAY - NOV NOV 45%
improve small break loss of coolant accident margins.
7. Failure modes and effects of Loss Of DC Power JUL - AUG NONE SEP 90%
8. Generic Letter 96-06 - Containment Penetrations JUL APR - SEP SEP 65%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DISCOVERY
" System Readiness & Review - ""Extent of condition""" PHASE
- -------------------------------------------------------------------------------------
<S> <C>
Level 1 reviews (8 systems) COMPLETE
Level 2 reviews (18 systems) COMPLETE
Level 3 reviews (79 systems) COMPLETE
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
System Checks and Power Ascension START FINISH COMMENTS
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
System Lineups, Heatup & Testing JUL DEC 13 OF 105 SYSTEMS TURNED
Secondary Systems Testing SEP SEP OVER TO OPERATIONS
Startup & Power Escalation DEC DEC
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Other Significant Activities START FINISH COMMENTS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Steam generator testing JUN JUL TESTING COMPLETE
Reduce maintenance backlog to less than 200 items JAN DEC CURRENTLY AT 605 ITEMS,
DOWN FROM 800
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
-
EXHIBIT 99.(b)
[CORPORATE LOGO OMITTED]
FLORIDA PROGRESS CORPORATION
NEWS RELEASE
Corporate Relations Department, St. Petersburg, Florida
Media Contact:
Phil Dean (813) 866-5779
Florida Progress reports second-quarter loss after taking a one-time charge for
nuclear outage costs
St. Petersburg, Fla. (July 15, 1997) -- Florida Progress Corporation, the parent
of St. Petersburg-based Florida Power Corporation, today reported a loss of
$38.2 million or $.39 per share due to costs associated with the extended outage
of the company's Crystal River nuclear power plant. This compared with earnings
from continuing operations of $58.8 million or $.61 per share for the same
quarter last year. These second quarter 1996 earnings were before a $25 million
after-tax charge made to reflect the spin-off of Echelon International, the
company's former lending, leasing and commercial real estate business.
Revenues for the second quarter totaled $797.3 million, compared with $773.6
million for the second quarter of 1996.
Florida Power, the company's largest subsidiary, reported a loss of $43.6
million or $.45 per share after recording costs related to the extended outage
of its nuclear plant. The outage began in September 1996. The plant is expected
to return to service by the end of 1997 after modifications are made to several
back up safety systems. Second quarter variations reflect $92 million in
additional operating and maintenance costs associated with the outage and $70
million for non-recoverable replacement power costs.
Excluding the effect of one-time nuclear outage costs, Florida Power earned
$56.1 million or $.58 per share, compared to $53.9 or $.56 per share over the
same period last year.
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, earned $9.2 million, or $.10 per share during the second quarter.
This compared to earnings of $6.7 million or $.07 per share in the second
quarter of 1996. The higher earnings were made possible by improved operating
results from its Rail Services and Inland Marine Transportation business units.
Florida Progress Corporation Chief Financial Officer Jeffrey R. Heinicka said,
"Having reached a settlement agreement allows us to take a one-time charge for
nuclear outage costs. This lets us put the issue behind us and focus on the
future."
- more -
<PAGE>
Page 2
<TABLE>
- ---------------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
June 31 June 31
-------------------------------- -----------------------------------
1997 1996 1997 1996
---------------- --------------- ----------------- -----------------
<S> <C> <C> <C> <C>
$797.3 $773.6 $3,198.7 $3,087.5
---------------- --------------- ----------------- -----------------
Income (loss) from continuing operations (38.2) 58.8 147.6 244.1
Discontinued operations - (25.0) (1.3) (25.0)
---------------- --------------- ----------------- -----------------
Net income (loss) ($38.2) $33.8 $146.3 $219.1
================ =============== ================= =================
Earnings Per Share (EPS):
Income (loss) from continuing operations ($.39) $.61 $1.52 $2.53
Discontinued operations - (.26) (.01) (.26)
------ ------ ------ ------
Consolidated ($.39) $.35 $1.51 $2.27
====== ====== ====== ======
Average Common
shares Outstanding 97,057,713 96,792,084 97,034,292 96,352,278
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $5.5 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.
