As filed with the Securities and Exchange Commission on January 29, 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):
January 29, 1997
<TABLE>
<CAPTION>
Exact name of Registrant as specified
Commission in its charter, address of principal State of I.R.S. Employer
File No. executive offices, telephone number 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. 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:
Florida Power issued a news release dated January 29, 1997 reporting
Florida Power's Crystal River Nuclear Plant being added to NRC watch list. A
copy of the news release is being filed herewith as Exhibit 99.(a). Florida
Progress issued an investor news release dated January 29, 1997 relating to the
Crystal River 3 Nuclear Power Plant. A copy of the investor news release is
being filed herewith as Exhibit 99.(b).
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 Power Corporation News Release dated January 29,
1997 reporting the Crystal River Nuclear Plant being
added to NRC watch list.
99.(b) Florida Progress Corporation Investor News Release dated
January 29, 1997 regarding the Crystal River 3 Nuclear
Power plant.
<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/ Jeffrey R. Heinicka
By:____________________________
Jeffrey R. Heinicka
Senior Vice President and
Chief Financial Officer
of each Registrant
Date: January 29, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Power Corporation News Release dated January 29, 1997
reporting the Crystal River Nuclear Plant being added to NRC
watch list.
99.(b) Florida Progress Corporation Investor News Release dated
January 29, 1997 regarding the Crystal River 3 Nuclear Power
plant.
EXHIBIT 99.(a)
[LOGO OMITTED]
Florida Power Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
Media Contacts:
Melodye Hendrix Karen Raihill
(813) 866-4282 (813) 866-5023
FLORIDA POWER CORPORATION'S CRYSTAL RIVER NUCLEAR PLANT
GOES ON NUCLEAR REGULATORY COMMISSION'S WATCH LIST
St. Petersburg, FL (January 29, 1997) -- Officials at Florida Power
Corporation today expressed disappointment at placement of the Crystal River 3
nuclear plant on the Nuclear Regulatory Commission's semi-annual "Watch List."
The list identifies plants that will get increased attention from the NRC until
a period of improved performance is demonstrated.
"Our focus remains addressing the issues that both we and the NRC have
raised so that the plant can achieve sustained improved performance in a safe,
reliable, and cost-effective manner," said Joe Richardson, president and chief
operating officer.
The NRC cited the nuclear plant's 1996 decline in overall performance
as the primary reason for putting the plant on the list. The Crystal River plant
is in the category 2 designation of the Watch List, defined by the NRC as plants
that are authorized to operate but will be closely monitored by the agency.
In late 1996, the company began implementing a Management Corrective
Action Plan to address the NRC's concern over performance. Areas cited for
improvement included management oversight, engineering performance, operator
performance, and regulatory compliance. "We are confident that we have a
comprehensive plan that will help return the unit to top performance,"
Richardson said.
The nuclear plant currently has been in an extended maintenance outage
since September 2, 1996. The primary issue involves a loading problem with one
of the plant's two emergency diesel generators that are part of the emergency
core cooling system. Those generators would be activated in the event there is a
loss of off-site power
The NRC noted that attempts to further improve the safety margin of one
of the generators during the plant's last refueling outage in the spring of 1996
should have been reviewed by the NRC prior to making the modifications.
<PAGE>
Florida Power Corporation
Page 2
The company is currently evaluating options to address the generator
issue. Assuming it can be successfully resolved by the fourth quarter of 1997,
the plant is expected to return to service by year-end. Appearing on the Watch
List is not expected to significantly affect the company's plans to restart the
plant.
Crystal River 3 is an 860-megawatt nuclear power plant located at
Florida Power's Crystal River Energy Complex near the Gulf of Mexico in Citrus
County. The plant has been in operation since 1977 and is Florida Power's only
nuclear unit.
Florida Power Corporation, the state's second-largest electric utility,
is the principal subsidiary of St. Petersburg-based Florida Progress Corporation
(NYSE:FPC) and serves 1.3 million customers in central and northern Florida.
###
EXHIBIT 99.(b)
[LOGO OMITTED]
Florida Progress Corporation
Investor News
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
Florida Power Corporation's Crystal River Nuclear Plant Added
To NRC Watch List
ST. PETERSBURG, Florida, January 29, 1997 -- Today the Nuclear Regulatory
Commission (NRC) announced that Florida Power's Crystal River nuclear plant was
placed on the NRC's Watch List as a category two plant. Category two is defined
by the NRC as plants that are authorized to operate but will be closely
monitored by the NRC.
The NRC cited the nuclear plant's 1996 decline in engineering performance as one
of the main reasons for placing the plant on the list. Also mentioned were
modifications made to one of the plant's emergency diesel generators during its
1996 refueling outage which should have been reviewed by the NRC prior to making
the modification. These are the same issues Florida Power has been addressing
through its corrective action plan and were discussed at last week's NRC
enforcement conference.
Florida Power is disappointed that the NRC has placed its nuclear plant on the
Watch List. The company's management is committed to implementing safe, reliable
and cost effective solutions to resolve these issues. In late 1996, Florida
Power began implementing the second phase of its Management Corrective Action
Plan (MCAP) to address the NRC's concern over engineering performance. Florida
Power's management is confident its MCAP is an effective plan that will return
the unit to a superior performance level. The NRC acknowledged Florida Power's
progress with MCAP and that implementing the thorough corrective actions in the
plan would resolve the critical performance issues.
IMPACT ON RESTART PLAN
Placing the nuclear unit on the Watch List as a category two plant is not
expected to significantly affect Florida Power's plans to restart its nuclear
unit. Florida Power's restart team plans to complete its plan and present it to
the NRC restart panel by the end of February. Florida Power is reviewing several
options related to resolving a loading problem with one of its emergency diesel
generators and expects the unit to return to service by the fourth quarter of
1997.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.3 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.
####
