EXHIBIT 99.(a)
NEWS RELEASE
Florida Progress Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports slight increase in second-quarter earnings
ST. PETERSBURG, Fla. (July 20, 1995) -- Florida Progress Corporation, parent of
St. Petersburg-based Florida Power Corporation, today reported second-quarter
earnings of $55.2 million, or 58 cents per share, compared with $53.7 million,
or 58 cents a share, earned a year ago. Revenues for the quarter totaled $742.9
million, compared with $693.2 million for the same three-month period in 1994.
Florida Power, the largest subsidiary of Florida Progress, earned $50.6 million,
or 53 cents per share, on revenues of $550.5 million in this year's second
quarter, compared with earnings of $47.6 million, or 51 cents a share, on
revenues of $517 million for the same three-month period a year ago.
Retail kilowatt-hour sales at Florida Power increased by 4.6 percent in the
second quarter of 1995, compared with the prior-year quarter. Customer growth
of about 2 percent and a stronger economy contributed to the improved energy
sales.
Second-quarter 1995 earnings benefited from savings that have resulted from
cost-control initiatives at the utility. Partially offsetting higher energy
sales and cost-reduction efforts were increased expenses for purchased power
capacity costs, nuclear decommissioning, depreciation, and property taxes during
the quarter.
In January 1995, the Florida Public Service Commission ordered Florida Power to
begin a three-year test of a revenue decoupling plan for its residential sales.
The plan separates, or decouples, revenues from energy sales. Decoupling is
designed to reconcile, or "true up," the revenues to an authorized target level.
As a result, abnormal weather variances will no longer impact earnings with
respect to residential revenues. Although retail kilowatt-hour sales for the
second quarter of 1995 were higher due to the unusually hot temperatures, the
decoupling mechanism eliminated the earnings impact of this extreme weather.
Residential revenues would have been about $13 million higher in the second
quarter of 1995 if not for revenue decoupling.
Diversified earnings were $4.6 million, or 5 cents per share, in the quarter
compared with $6.1 million, or 7 cents a share, earned last year. Earnings from
Electric Fuels Corporation were lower than the same period in 1994, primarily
due to its marine transportation business.
Florida Progress (NYSE: FPC) is a Fortune 500 diversified utility holding
company with assets of $5.7 billion. Its principal subsidiary is Florida Power,
the state's second-largest electric utility with more than 1.2 million
customers. Diversified operations include coal mining and transportation, life
insurance, real estate and lending and leasing.
Three Months Ended Twelve Months Ended
June 30 June 30
1995 1994 1995 1994
----------- ------------ ------------- -------------
Revenues $742,900,000 $693,200,000 $2,885,200,000 $2,734,800,000
Net Income $ 55,200,000 $ 53,700,000 $ 223,600,000 $ 209,400,000
=========== =========== ============= =============
Earnings Per Share (EPS):
Florida Power Corporation $ .53 $ .51 $ 2.13 $ 2.11
Diversified Operations .05 .07 .22 .22
----- ----- ----- -----
Consolidated $ .58 $ .58 $ 2.35 $ 2.33
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Average Common
Shares Outstanding 95,593,233 92,310,976 95,089,128 89,987,539