UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-3382
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CAROLINA POWER & LIGHT COMPANY
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(Exact name of registrant as specified in its charter)
North Carolina 56-0165465
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
411 Fayetteville Street, Raleigh, North Carolina 27601-1748
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(Address of principal executive offices) (Zip Code)
919-546-6111
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No .
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APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date. Common Stock (Without Par
Value) shares outstanding at October 31, 1997: 150,340,394.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
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Reference is made to the attached Appendix containing the Consolidated
Interim Financial Statements for the periods ended September 30, 1997.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
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RESULTS OF OPERATIONS
For the Three, Nine and Twelve Months Ended September 30, 1997,
As Compared With the Corresponding Periods One Year Earlier
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Operating Revenues
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For the three, nine and twelve months ended September 30, 1997,
operating revenues were affected by the following factors (in millions):
Three Nine Twelve
Months Months Months
------ ------ ------
Customer Growth / Changes In
Usage Patterns ................................. $ 61 $ 103 $ 124
Weather ........................................ 21 (70) (92)
Price .......................................... (21) (32) (35)
Power Agency ................................... (1) (22) (24)
NCEMC Load Loss ................................ -- -- (24)
Sales to Other Utilities ....................... 14 7 9
Other .......................................... 1 2 4
- ------------------------------------------------ ----- ----- -----
Total ..................................... $ 75 $ (12) $ (38)
===== ====== ======
The increase in the customer growth / changes in usage patterns
component of revenue for all comparison periods is primarily a result of
economic growth within the Company's service territory. The increase in the
weather component of revenue for the three months ended September 30, 1997
reflects a return to more normal temperatures in the current period. The
decrease in the weather component of revenue for the nine and twelve months
ended September 30, 1997, is the result of milder than normal temperatures in
the current periods as compared to more extreme weather patterns in the prior
periods. Both the customer growth / changes in usage patterns and weather
components of revenue were impacted by lost revenues caused by Hurricanes Fran
and Bertha in the prior periods. For all comparison periods, part of the
decrease in the price component of revenue is attributable to a decrease in the
fuel cost component of revenue, along with the impact of changes to the Power
Coordination Agreement between the Company and North Carolina Electric
Membership Corporation (NCEMC), which became effective in January 1997. The
decrease in revenue related to sales to North Carolina Eastern Municipal Power
Agency (Power Agency) for the nine- and twelve-month periods is primarily due to
the impacts of milder weather, along with the increased availability in the
current period of generating units owned jointly by the Company and Power
Agency. Beginning in January 1996, NCEMC replaced 200 MW of load capacity it
formerly purchased from the Company with power purchases from another supplier.
The increase in revenues from sales to other utilities for all comparison
periods reflects the Company's increased bulk power marketing efforts.
Operating Expenses
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The change in purchased power for all periods includes increased
purchases from other utilities resulting from the Company's more active
participation in bulk power marketing. These increases were offset to varying
extents by decreases in purchased power as a result of amendments to electric
purchase power agreements between the Company and Cogentrix of North Carolina,
Inc. and Cogentrix Eastern Carolina Corporation, which became effective in
September 1996.
Other operation and maintenance expense for all prior periods includes
Hurricane Fran expenses of $29.8 million. The Company received approval from the
North Carolina Utilities Commission (NCUC) to defer total accumulated expenses
of approximately $40 million associated with Hurricane Fran and amortize them
over a 40-month period. These expenses were deferred during the fourth quarter
of 1996. Excluding the impact of Hurricane Fran, other operation and maintenance
expense decreased $13.5 million and $14.5 million for the three and nine months
ended September 30, 1997, respectively. The three-month decrease is primarily a
result of the timing of plant outages. In the prior three-month period, there
were higher expenses associated with nuclear plant outages as compared to the
current period. The decrease for the nine-month period is partially a result of
decreased severance-related costs in the current period. Both comparison periods
also reflect the Company's continued cost reduction efforts, particularly the
consolidation of customer service functions, and the impact of Hurricane Bertha
striking the Company's service territory in July 1996.
Other operation and maintenance expense increased $11.9 million for the
twelve-month period ended September 30, 1997, excluding the impact of Hurricane
Fran expenses incurred in the prior period and the subsequent deferral of all
Hurricane Fran expenses in the current period. This increase is primarily a
result of increased outage expense incurred during the current period. In the
current twelve-month period there were several major fossil and nuclear plant
outages that resulted in higher expense as compared to the prior period.
Partially offsetting these expenses were the Company's continued cost reduction
efforts and the impacts of severance-related costs and Hurricane Bertha, as
discussed above.
In December 1996, the NCUC authorized the Company to accelerate
amortization of certain regulatory assets over a three-year period beginning
January 1, 1997. In March 1997, the South Carolina Public Service Commission
(SCPSC) approved a similar plan for the Company to accelerate the amortization
of certain regulatory assets, including plant abandonment costs related to the
Harris Nuclear Plant, over a three-year period beginning January 1, 1997.
Depreciation and amortization for the three, nine and twelve months ended
September 30, 1997, includes approximately $17 million, $51 million, and $51
million, respectively, related to accelerated amortization of these regulatory
assets. The increase in depreciation and amortization expense for the three,
nine and twelve months ended September 30, 1997, also reflects amortization of
deferred expenses associated with Hurricane Fran of approximately $3 million, $9
million and $13 million, respectively, in the current periods.
Income tax expense increased $33 million for the three-month period
primarily due to an increase in pre-tax operating income. For the nine- and
twelve-month periods, income tax expense decreased $28.3 and $50.4 million,
respectively due to a reduction in pre-tax operating income, as well as the
impact of current and prior period tax provision adjustments recorded for
potential audit issues in open tax years.
Other Income
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Allowance for equity funds used during construction decreased for the
nine and twelve months ended September 30, 1997, in accordance with the
application of the formula prescribed by the Federal Energy Regulatory
Commission. During the current periods, a greater proportion of the total
allowance for funds used during construction was credited to interest charges as
allowance for borrowed funds used during construction.
Interest income increased for all periods primarily as a result of
interest income of $1.3 million, $10.0 million and $10.0 million recorded during
the three, nine and twelve months ended September 30, 1997, respectively,
related to an income tax refund.
The change in other income, net, for the three, nine and twelve months
ended September 30, 1997, includes losses in the current periods for certain
non-regulated investments which are in the start-up phases and decreases in
certain income items, none of which is individually significant. Offsetting
these decreases in the current twelve-month period, was an adjustment of $22.9
million to the unamortized balance of abandonment costs related to the Harris
Nuclear Plant. See additional discussion of the abandonment adjustment in the
Retail Rate Matters section of OTHER MATTERS.
Interest Charges
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Interest charges on long-term debt decreased for all reported periods
primarily due to reduced long-term debt balances. Also contributing to the
decrease in interest charges for the twelve-month period were refinancings of
long-term debt with lower interest cost commercial paper borrowings.
MATERIAL CHANGES IN LIQUIDITY AND CAPITAL
RESOURCES From December 31, 1996, to
September 30, 1997
and From September 30, 1996, to September 30, 1997
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Capital Requirements
----------------------
During the nine- and twelve-month periods ended September 30, 1997, the
Company financed redemptions or retirements of long-term debt totaling $60
million and $135 million, respectively, from the issuance of short-term debt
and/or internally generated funds.
On July 1, 1997, the Company redeemed all 500,000 shares of $7.72
Serial Preferred Stock and all 350,000 shares of $7.95 Serial Preferred Stock,
both at a redemption price of $101 per share. The redemptions were funded with
additional commercial paper borrowings and/or internally generated funds.
On August 26, 1997, the Company issued $200 million of First Mortgage
Bonds. The net proceeds from this issuance were used to reduce the outstanding
balance of commercial paper and other short-term debt and for other general
corporate purposes. There were no other long-term debt issuances during the nine
and twelve months ended September 30, 1997.
On September 30, 1997, the Company terminated a $70 million long-term
revolving credit facility. As of October 1, 1997, the Company's revolving credit
facilities totaled $615 million, consisting of long-term agreements totaling
$515 million and a $100 million short-term agreement. The Company is required to
pay minimal annual commitment fees to maintain its credit facilities.
The Company's capital structure as of September 30 was as follows:
1997 1996
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Common Stock Equity ............. 53.40% 50.75%
Long-term Debt .................. 45.47% 46.53%
Preferred Stock ................. 1.13% 2.72%
The Company's First Mortgage Bonds are currently rated "A2" by Moody's
Investors Service, "A" by Standard & Poor's and "A+" by Duff & Phelps. Moody's
Investors Service, Standard & Poor's and Duff & Phelps have rated the Company's
commercial paper "P-1," "A-1" and "D-1," respectively.
OTHER MATTERS
Retail Rate Matters
-------------------
A petition was filed in July 1996 by the Carolina Industrial Group for
Fair Utility Rates (CIGFUR) with the NCUC, requesting that the NCUC conduct an
investigation of the Company's base rates or treat its petition as a complaint
against the Company. The petition alleged that the Company's return on equity
(which was authorized by the NCUC in the Company's last general rate proceeding
in 1988) and earnings are too high. In December 1996, the NCUC issued an order
denying CIGFUR's petition and stating that it tentatively found no reasonable
grounds to proceed with CIGFUR's petition as a complaint. In January 1997,
CIGFUR filed its Comments and Motion for Reconsideration to which the Company
responded. On February 6, 1997, the NCUC issued an order denying CIGFUR's Motion
for Reconsideration. On February 25, 1997, CIGFUR filed a Notice of Appeal of
the NCUC's decision with the North Carolina Court of Appeals. The Company filed
its brief in this matter on July 18, 1997. Oral argument before the North
Carolina Court of Appeals is scheduled for November 19, 1997. The Company cannot
predict the outcome of this matter.
In December 1996, the Company filed a proposal with the SCPSC to
accelerate amortization of certain regulatory assets, including plant
abandonment costs related to the Harris Nuclear Plant, over a three-year period
beginning January 1, 1997. In anticipation of approval of the proposal in 1997,
the unamortized balance of plant abandonment costs related to the Harris Nuclear
Plant was adjusted in 1996 to reflect the present value impact of the shorter
recovery period. This adjustment resulted in an increase in income of
approximately $14 million, after tax, in the fourth quarter of 1996. On March
20, 1997, the SCPSC approved the Company's accelerated amortization proposal.
Competition
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On April 17, 1997, the North Carolina General Assembly approved
legislation establishing a 23-member study commission to evaluate the future of
electric service in the state. In October 1997, the North Carolina Senate and
the North Carolina House of Representatives appointed twelve state legislators,
two residential customers, two industrial customers, one commercial customer and
one power marketer to the study commission. Also in October 1997, the Governor
of North Carolina appointed an environmentalist to the study commission. The
study commission also includes a representative from each of the four major
power suppliers in the state: the Company, Duke Energy, NCEMC and ElectriCities.
The commission will examine a wide range of issues related to the cost and
delivery of electric service, including the issue of customer choice of electric
providers, and will make an interim report to the 1998 General Assembly and a
final report in 1999. The study commission's first meeting was held on November
4, 1997. The Company cannot predict the outcome of this matter.
Also on April 17, 1997, a bill was introduced in the North Carolina
House of Representatives calling for retail electric competition. The bill would
require that residential customers be able to choose their provider by October
1, 1998, commercial customers by January 1, 1999, and industrial customers by
July 1, 1999. The Company cannot predict the outcome of this matter.
On February 6, 1997, representatives in the South Carolina General
Assembly introduced a bill calling for a transition to full competition in the
electric utility industry beginning in 1998. No action was taken on this bill.
In addition, by letter dated May 6, 1997, the Speaker of the South Carolina
House of Representatives requested that the SCPSC prepare a proposal for the
deregulation and restructuring of electricity in South Carolina, with a report
date of January 31, 1998. The SCPSC requested and received comments, including
those filed by the Company, on deregulation and invited interested parties to
make presentations on August 19, 1997. The Company and other interested parties
made presentations regarding deregulation to the SCPSC August 19 through August
21, 1997. The South Carolina General Assembly's Utility Subcommittee has
completed six hearings around the state in order to receive citizen input on the
deregulation issue. The subcommittee will continue to meet regarding
deregulation. The Company cannot predict the outcome of this matter.
Numerous bills have been introduced in both the House and Senate of the
105th Congress concerning the restructuring of the electric utility industry.
There is little consensus among key provisions of the various bills. Some bill
sponsors have held workshops and hearings to discuss various aspects of
restructuring. No legislation has been passed to date in this session. More
restructuring-related bills are expected to be introduced later in the session.
The Company cannot predict the outcome of these matters.
In anticipation of the emergence of deregulation in the electric
utility industry, the Company will internally organize into separate business
units in early 1998. The business units will include Energy Supply, Energy
Delivery and Retail Sales and Services. The focus of these business units will
be to create a corporate culture that is necessary to compete in a deregulated
environment.
Impact of New Accounting Standard
---------------------------------
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per Share,"
(SFAS-128), which changed the previous standards on computing and presenting
earnings per share. SFAS-128 is effective for fiscal years ending after December
15, 1997; earlier application is not permitted. The Company does not expect the
adoption of SFAS-128 to have a material impact on its financial statements.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
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Legal aspects of certain matters are set forth in Item 5 below.
Item 2. Changes in Securities
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(a) Securities Delivered. On October 30, 1997, 301,087 shares of
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the Company's common stock (Common Shares) that had been
recently purchased in the open market by the Company's
wholly-owned subsidiary, Strategic Resource Solutions Corp.,
a North Carolina Enterprise Corporation (SRS), were
exchanged by SRS for all of the outstanding shares of
Diversified Control Systems, Inc., a North Carolina
corporation (DCS). SRS is obligated to deliver additional
Common Shares having a market value (calculated according to
a formula in the exchange agreement) of $500,000 if DCS
meets certain financial performance objectives by December
31, 1997. All Common Shares delivered by SRS pursuant to the
exchange agreement have been or will be acquired in market
transactions, and do not represent newly-issued shares of
the Company.
(b) Underwriters and Other Purchasers. No underwriters were used
----------------------------------
in connection with the share exchange transactions
identified above. The recipients of the Common Shares were
the shareholders of DCS, who all agreed to exchange their
DCS shares for Common Shares pursuant to the exchange
agreement.
(c) Consideration. The consideration for the Common Shares was
--------------
the exchange of all outstanding shares of DCS stock pursuant
to the exchange agreement.
(d) Exemption from Registration Claimed. The Common Shares
---------------------------------------
described in this Item were delivered on the basis of an
exemption from registration under Section 4(2) of the
Securities Act of 1933. The Common Shares were received by a
limited number of individuals and are subject to
restrictions on resale typical for private placements.
Appropriate disclosure was made to all persons receiving
Common Shares in the exchange with SRS.
Item 3. Defaults upon Senior Securities )
- ------- ------------------------------- ) Not applicable for the quarter
) ended September 30, 1997.
Item 4. Submission of Matters to a Vote )
- ------- of Security Holders )
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Item 5. Other Information
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1. (Reference is made to the Company's 1996 Form 10-K,
Generating Capability, paragraph 3.e., page 4.) With regard
to the Asheville Combustion Turbine Project, a Certificate
of Public Convenience and Necessity was issued by the North
Carolina Utilities Commission (NCUC) on August 1, 1997, to
construct a 160 MW combustion turbine unit. On August 15,
1997, the Company contracted with General Electric Company
to manufacture and install this combustion turbine unit. The
expected in-service date is June 1999.
2. (Reference is made to the Company's 1996 Form 10-K,
Competition and Franchises, paragraph 1.b., page 6.) By
order issued September 23, 1997, the NCUC requested
additional comments from interested parties regarding: the
matters raised in the parties' initial and reply comments
filed in Docket No. E-100, Sub 78; general industry trends
related to industry restructuring; and the parties' actual
experience under FERC Orders 888 and 889. The initial
comments are due on November 26, 1997, and reply comments
are due on December 17, 1997. The Company cannot predict the
outcome of this matter.
3. (Reference is made to the Company's 1996 Form 10-K,
Competition and Franchises, paragraph 1.b., page 6.
Reference is also made to the Company's Form 10-Q for the
quarter ended March 31, 1997, Item 5, paragraph 1. Reference
is also made to the Company's Form 10-Q for the quarter
ended June 30, 1997, Item 5, paragraph 3.) With regard to
the 23-member deregulation study commission established by
the North Carolina General Assembly, in October 1997, the
North Carolina Senate and North Carolina House of
Representatives appointed twelve state legislators, two
residential customers, two industrial customers, one
commercial customer and one power marketer to the study
commission. The Governor of North Carolina appointed an
environmentalist to the study commission. The study
commission also includes a representative from each of the
four major power suppliers in the state: the Company, Duke
Energy, North Carolina Electric Membership Corporation and
ElectriCities. The study commission's first meeting was held
on November 4, 1997.
Interested parties, including the Company, made
presentations regarding deregulation to the South Carolina
Public Service Commission (SCPSC) August 19 through August
21, 1997. The South Carolina General Assembly's Utility
Subcommittee has completed six hearings around the state in
order to receive citizen input on the deregulation issue.
The subcommittee will continue to meet regarding
deregulation.
The Company cannot predict the outcome of these matters.
4. (Reference is made to the Company's 1996 Form 10-K,
Financing Program, paragraph 3, page 11.) Issuance of Bonds,
Preferred Stock and Debentures were as follows:
The issuance on August 26, 1997, of $200 million
principal amount of First Mortgage Bonds, 6.80%
Series due on August 15, 2007. The net proceeds of
approximately $199 million were used to reduce the
outstanding balance of commercial paper and other
short-term debt and for other general corporate
purposes.
5. (Reference is made to the Company's 1996 Form 10-K,
Financing Program, paragraph 4, page 11.) Retirements and
redemptions during 1997 were as follows:
The full redemption on July 1, 1997, of 500,000
shares of Serial Preferred Stock, $7.72 Series, at
a redemption price of $101.00 per share.
The full redemption on July 1, 1997, of 350,000
shares of Serial Preferred Stock, $7.95 Series, at
a redemption price of $101.00 per share.
6. (Reference is made to the Company's 1996 Form 10-K,
Financing Program, paragraph 5, page 11.) On September 30,
1997, the Company terminated a $70 million long-term
revolving credit facility. As of October 1, 1997, the
Company's credit facilities totaled $615 million, consisting
of $515 million in long-term agreements and a $100 million
short-term agreement. The Company is required to pay minimal
annual commitment fees to maintain its credit facilities.
7. (Reference is made to the Company's 1996 Form 10-K, Retail
Rate Matters, paragraph 2, page 12. Reference is also made
to the Company's Form 10-Q for the quarter ended June 30,
1997, Item 5, paragraph 4.) With regard to the filing by
Carolina Industrial Group for Fair Utility Rates (CIGFUR) of
a Notice of Appeal with the North Carolina Court of Appeals,
oral argument before the North Carolina Court of Appeals is
scheduled for November 19, 1997. The Company cannot predict
the outcome of this matter.
8. (Reference is made to the Company's 1996 Form 10-K, Retail
Rate Matters, paragraph 3, page 13.) With regard to
Integrated Resource Planning (IRP), on September 16, 1997,
the NCUC issued an order soliciting comments from interested
parties regarding streamlining or otherwise refining the IRP
process. Initial comments were filed by the Company on
October 30, 1997, and reply comments are due December 1,
1997. The Company cannot predict the outcome of this matter.
9. (Reference is made to the Company's 1996 Form 10-K, Retail
Rate Matters, paragraph 4, page 13. Reference is also made
to the Company's Form 10-Q for the quarter ended June 30,
1997, Item 5, paragraph 5.) With regard to the annual NCUC
fuel factor hearing on August 5, 1997, the NCUC issued a
final order approving the billing fuel factor of 1.097
cents/kwh on September 8, 1997. This new factor became
effective on September 15, 1997.
10. (Reference is made to the Company's 1996 Form 10-K,
Environmental Matters, paragraph 2, page 15. Reference is
also made to the Company's Form 10-Q for the quarter ended
June 30, 1997, Item 5, paragraph 7.) With regard to the
Clean Air Act matters, the Environmental Protection Agency
(EPA) has recently issued a rulemaking to implement the
Ozone Transport Assessment Group's recommendations regarding
utility Nitrogen Oxide (NOx) emissions. Northeastern states
are petitioning the EPA for additional NOx controls. The
Company cannot predict the outcome of this matter.
11. (Reference is made to the Company's 1996 Form 10-K,
Environmental Matters, paragraph 3.c., page 16.) With regard
to the Seaboard Chemical Corporation in Jamestown, North
Carolina, on August 22, 1997, the Company joined with other
members of the Seaboard Group II in entering into an
Administrative Order on Consent to undertake a feasibility
study. The Company cannot predict the outcome of this
matter.
12. (Reference is made to the Company's 1996 Form 10-K,
Environmental Matters, paragraph 3.d., page 17.) With regard
to the Crown Cork & Seal Company and Clark Equipment Company
lawsuit seeking contribution from the Company in connection
with the Macon-Dockery site, on April 11, 1997, the United
States District Court for the Middle District of North
Carolina granted the plaintiffs' motion for a voluntary
dismissal without prejudice. The Company anticipates that
this lawsuit will be refiled shortly. The Company cannot
predict the outcome of this matter.
13. (Reference is made to the Company's 1996 Form 10-K,
Environmental Matters, paragraph 3.f., page 17.) With regard
to the Cherokee Oil Company sites in Charlotte, North
Carolina, on October 10, 1997, a partial consent decree
resolving the Company's liability at the site was entered
with the United States District Court for the Western
District of North Carolina. The costs associated with this
site are not material to the results of operations of the
Company.
14. (Reference is made to the Company's 1996 Form 10-K,
Environmental Matters, paragraph 4, page 17.) With regard to
Wilmington Oil Terminal, the North Carolina Department of
Environment and Natural Resources, (formerly the North
Carolina Department of Environment, Health and Natural
Resources), approved the corrective action plan
modifications for natural attenuation and degradation of
petroleum residuals in the groundwater. The costs associated
with this site are not material to the results of operations
of the Company.
15. (Reference is made to the Company's 1996 Form 10-K, Nuclear
Matters, paragraph 2, page 18.) With regard to high-level
radioactive waste disposal and fees paid by the Company to
the Department of Energy (DOE), by order issued August 20,
1997, the NCUC requested comments from interested parties
regarding the utilities' spent fuel storage and disposal
activities and costs and the reasonableness of the utilities
continuing to pay a disposal fee to the DOE after January
31, 1998. Initial comments were filed by the Company and
other interested parties on September 30, 1997. Reply
comments were filed on October 21, 1997. The Company cannot
predict the outcome of this matter.
In October of 1997, the U.S. House of Representatives voted
307 to 120 in favor of legislation calling for the
construction of an interim nuclear waste storage site in
Nevada by 2002. A similar waste bill was approved by the
U.S. Senate in April of 1997. The Company cannot predict the
outcome of this matter.
16. (Reference is made to the Company's 1996 Form 10-K, Other
Matters, paragraph 5, page 25.) With regard to CaroNet, LLC
and its applications to provide competing local telephone
service and to provide intrastate long distance service in
North Carolina, the NCUC granted CaroNet, LLC Certificates
of Public Convenience and Necessity to provide these
services on April 10, 1997 and September 11, 1997,
respectively.
Item 6. Exhibits and Reports on Form 8-K
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(a) Exhibits Filed:
Exhibit No. Description
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27 Financial Data Schedule
(b) Reports on Form 8-K filed during or with respect to the
quarter:
The Company filed a Form 8-K on August 28, 1997 regarding
the August 26, 1997 issuance of $200 million principal
amount of First Mortgage Bonds, 6.80% Series due August 15,
2007.
SIGNATURES
Pursuant to requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAROLINA POWER & LIGHT COMPANY
(Registrant)
By /s/ Glenn E. Harder
--------------------------------
Glenn E. Harder
Executive Vice President and
Chief Financial Officer
By /s/ Bonnie V. Hancock
-------------------------------
Bonnie V. Hancock
Vice President and Controller
(and Principal Accounting Officer)
Date: November 12, 1997