EXHIBIT 99.(b)
Florida Progress Corporation   INVESTOR NEWS
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442

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               Florida Power Corporation Announces Acquisition Of
                 Tiger Bay Facility To Achieve Customer Savings

ST. PETERSBURG, Florida, January 23, 1997 -- Florida Progress Corporation
(NYSE:FPC) announced that Florida Power Corporation, its electric utility
subsidiary, signed an agreement this week to acquire the 220-megawatt Tiger Bay
cogeneration facility near Ft. Meade, Florida, 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.

Like many utilities, Florida Power became obligated in the 1980's to sign
long-term purchase power contracts with nonutility power producers, like the
Tiger Bay project, to comply with the 1978 Public Utility Regulatory Polices
Act. Since those contracts were signed, projections indicate dramatic declines
in the market price of electricity, made possible by lower-than-predicted fuel
costs, lower construction costs and more efficient power plant technology.

To mitigate the impact of these higher future costs for Florida Power's
customers, the company is pursuing an aggressive strategy to reduce and
restructure the financial impact of these contracts for its customers. Buying
the Tiger Bay facility is expected to result in long-term customer savings in
the range of more than $2 billion over the life of the existing contract that
runs to 2025.

"This is a unique opportunity that should result in substantial savings. We can
significantly reduce costs for our customers by purchasing the plant and
terminating the purchased power obligations," said Joe Richardson, Florida Power
president and chief operating officer. Florida Power will be seeking approval
from the Florida Public Service Commission to recover the acquisition cost from
customers over a 5-year period, as well as the cost of fuel for the facility.

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 about 50
percent. The other partners are Energy Investors Fund and General Peat. The
proposed transaction is scheduled to close July 1, subject to approval by the
appropriate regulatory agencies and the closing of a potential sale of Destec.

Florida Power intends to add this plant to its fleet of fossil-fired power
plants. The Tiger Bay facility uses an advanced gas-fired combined cycle
technology. The purchase would include the plant, equipment, spare parts and
assigned contracts, including natural gas fuel and transportation contracts.

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.

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