EXHIBIT 99.(a)
Florida Power Corporation       NEWS RELEASE
Corporate Relations Department, St. Petersburg, Florida
Media contact: Karen Raihill -- (813) 866-5023

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         FLORIDA POWER CORPORATION ANNOUNCES ACQUISITION OF TIGER BAY FACILITY 
                        TO ACHIEVE COST SAVINGS FOR CUSTOMERS

         St.  Petersburg,  FL (January 23, 1997) -- Under an  agreement  signed
this week,  Florida  Power  Corporation  will acquire  the  220-megawatt  Tiger
Bay  cogeneration  facility  near Ft.  Meade,  Florida.  The  plant is being 
sold for $445 million.

         Tiger Bay is Florida Power's largest cogeneration power supplier,
representing more than 20 percent of the 1,050 megawatts of total capacity that
the company receives from 16 cogenerators. Buying this facility is expected to
result in customer savings in the range of more than $2 billion over the life of
the existing contract that runs to 2025.

         Like many utilities, Florida Power became obligated in the 1980s to
sign long-term purchase power contracts with nonutility power producers, such as
Tiger Bay, to comply with the 1978 Public Utility Regulatory Policies Act. Over
the last several years, reductions in generating costs have come about by
lower-than-expected natural gas costs, lower construction costs, and more
efficient power plant technology. Purchase power costs are now significantly
higher than the projected costs for Florida Power's new generating facilities to
be located at its Polk County site.

         "By acquiring Tiger Bay, we can take advantage of a unique opportunity
that should result in substantial savings. We can significantly reduce costs for
our customers by purchasing the plant and terminating the contract obligations,"
said Joe Richardson, Florida Power president and chief operating officer.

         The Tiger Bay facility is owned by Tiger Bay Limited Partnership, which
is comprised of three general partners. Destec Energy, Inc., a leading
independent power producer based in Houston, Texas, owns the largest share at
approximately 50 percent. The other partners are Energy Investors Fund and
General Peat. The proposed transaction is slated to close on or before July 1,
subject to approval by appropriate regulatory agencies and the closing of a
potential sale of Destec.

         The plant, which uses an advanced gas-fired combined cycle technology,
began commercial operation in January 1995. When it is added to Florida Power's
fleet, it will be the most efficient generating unit on the company's system.
The purchase would include the plant, equipment, spare parts and assigned
contracts, including natural gas fuel and transportation contracts.

         Florida Power Corporation, the state's second-largest investor-owned
electric utility serving 1.3 million customers in central and northern Florida,
is the principal subsidiary of Florida Progress Corporation (NYSE:FPC).

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