As filed with the Securities and Exchange Commission on February 22, 1999
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):
February 18, 1999
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Exact name of Registrant as
Commission specified in its charter, address State of
I.R.S. Employer
File No. of principal executive offices, telephone Incorporati
on Identification No.
1-8349 FLORIDA PROGRESS CORPORATION Florida
59-2147112
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 824-6400
1-3274 FLORIDA POWER CORPORATION Florida
59-0247770
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 866-5151
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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.
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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, 1998:
Florida Progress issued an Investor News report dated February 18, 1999,
regarding an increase in its annual dividend, and Florida Power issued a News
Release dated February 19, 1999, regarding its construction of peaking units.
Copies of the Investor News report and News Release are being filed 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 February 18,
1999 regarding increase in Florida Progress dividend.
99.(b) Florida Power News Release dated February 19, 1999
regarding construction of peaking units.
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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
Treasurer of each Registrant
Date: February 19, 1999
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated February 18,
1999 regarding increase in Florida Progress' dividend.
99.(b) Florida Progress News Release dated February 19,1999
regarding construction of peaking units.
EXHIBIT 99.(a)
Florida Progress Corporation Increases Annual Dividend
ST. PETERSBURG, Florida...(February 18, 1999) -- Florida Progress Corporation's
board of directors today declared a quarterly cash dividend of 54 1/2 cents per
share on the company's outstanding common stock. The board's action increases
the annual dividend rate by 4 cents per share, thus raising the annual dividend
to $2.18 per share. This represents an annual dividend increase of 1.9 percent.
"The board's decision to increase the dividend is supported by management's
expectation that long-term growth in earnings per share should allow the Company
to continue reducing the dividend payout ratio over time while maintaining the
dividend growth rate," said Richard Korpan, chairman and CEO of Florida
Progress.
Florida Progress' earnings growth has enabled it to reduce its dividend payout
ratio to 74 percent at the end of 1998.
The new quarterly dividend of 54 1/2 cents per share is payable on March 20,
1999 to shareholders of record at the close of business on March 5, 1999.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains forward looking statements regarding Florida
Progress' projected earnings per share growth, dividend payout ratio and
dividend growth rate. These statements involve risks and uncertainties that
could cause actual results or outcomes to differ materially from expectations.
Key factors that could have a direct bearing on the company's ability to attain
these projections include continued annual growth in electric customers and
customer usage; economic and weather conditions affecting the demand for and the
supply of not only electricity but also Electric Fuels Corporation's products
and services; successful cost containment efforts; legislative and regulatory
developments; the efficient operation and/or construction of Florida Power's
existing and planned generating units; 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 $6.2 billion. Its principal subsidiary is Florida Power, one of
the nation's leading electric utilities committed to serving its 1.3 million
customers in Florida with competitively priced energy, excellent reliability,
and outstanding customer service. Diversified operations include rail services,
marine operations and coal mining.
EXHIBIT 99.(b)
Florida Progress Corporation
Investor News
[LOGO OMITTED]
Analyst Contacts:
Gre Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
FLORIDA POWER TO BUILD PEAKING UNITS
- - Generation expansion will increase overall capacity, reliability for FPC
customers
ST. PETERSBURG, FL...(February 19, 1999)...Florida Power Corporation today
announced the next phase of its generation expansion plan. The first phase was
the 500-megawatt Hines 1 unit, which began initial start-up and testing in
December 1998 and is scheduled for full commercial operation by the end of the
first quarter of this year. The next phase is to build three "peaker" power
generation units at Florida Power's Intercession City site in Osceola County.
The units, designed to provide electricity during periods of peak customer
demand, will provide a total of 300 megawatts of power beginning in December
2000.
"As we enter our 100th year of providing electric service to the residents of
Florida, we do so with a renewed commitment to providing our customers with
competitively priced, reliable energy," said Florida Power President and CEO Joe
Richardson. "We intend to live up to that commitment, and building new peaker
units provides us with an innovative and timely way to do just that."
In October of last year, Florida Power submitted a proposal to the Florida
Public Service Commission (PSC) asking the Commission to exercise its statutory
authority to forgo the bid requirement for a second power plant at the company's
Hines Energy Complex in Polk County. PSC rules state that the Commission may
forgo the time-consuming bid process if proposals, like the one Florida Power
submitted for the Hines 2 plant, would "likely result in lower-cost supply of
electricity, increase the reliable supply of electricity or is otherwise in the
public interest." Citing concerns about potentially lengthy legal challenges,
the PSC recently denied Florida Power's request for a bid waiver.
"While we're disappointed in the PSC's recent decision and its associated delay,
Hines 2 is still very much in our future plans, and the addition of peakers at
Intercession City simply postpones that phase to a later date," said Richardson.
"In the meantime, we will continue our work to meet the growing customer demand
for electricity in the near future."
Florida Power has an agreement with General Electric to purchase three 7EA
combustion turbine units. The units will be capable of using either oil or
natural gas,depending upon the cost and availability of those fuel sources.
Environmental permitting is expected to be complete by the end of the year, and
construction will begin immediately thereafter at Florida Power's Intercession
City plant site, which is located in southwestern Osceola County. It is a 167
- -acre site with 58 acres developed for peaking plants. Currently, the site
accommodates 11 units that in total produce more than 900 megawatts of power
during periods of peak customer demand for electricity.
Headquartered in St. Petersburg, Florida, Florida Power Corporation is one of
the country's leading investor-owned electric utilities. For 100 years, Florida
Power has provided electric service in central and northern Florida, and today
is the energy provider to more than 1.3 million customers who live within the
company's 32-county service area. Florida Power's dedication to growth through
expanding customer relationships is reflected in three customer commitments:
competitively priced energy, excellent reliability and outstanding customer
service. Florida Power is the principal subsidiary of St. Petersburg-based
Florida Progress Corporation (NYSE:FPC).
