EXHIBIT 99.(b)

NEWS RELEASE
FLORIDA PROGRESS CORPORATION
Corporate Relations Department, St. Petersburg, Florida
Media contact: Karen Raihill
               (813) 866-5023

[CORPORATE LOGO OMITTED]

             FLORIDA PROGRESS CORPORATION INCREASES ANNUAL 
                             DIVIDEND RATE

         St. Petersburg, FL (February 20, 1997) -- The board of directors of
Florida Progress Corporation today declared a quarterly cash dividend of 52 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 $2.10 per share. This represents an
annual dividend growth rate of about 2 percent.

         Several years ago, Florida Progress recognized that its dividend payout
ratio was too high. In 1992, the ratio was 93 percent. Since then, the company
has followed a strategy of lowering the payout while working to increase
earnings. This strategy has been successful. In 1996, the ratio as a percentage
of ongoing operations was 79 percent.

         "We are proud of our unbroken record of increasing the dividends paid
per share for 44 consecutive years, but we approach our dividend policy each
year by re-examining our payout ratio and rate to determine if they are
appropriate in view of the company's business plan, projected earnings growth,
and competitive environment we face as an electric utility," said Jeffrey R.
Heinicka, senior vice president and chief financial officer.

         The new quarterly dividend of 52 1/2 cents per share is payable on
March 20, 1997, to shareholders of record at the close of business on March 5,
1997.

         Florida Progress (NYSE: FPC) is a Fortune 500 diversified utility
holding company with assets of $5.3 billion. Its principal subsidiary is Florida
Power Corporation, the state's second-largest electric utility with 1.3 million
customers. Its diversified operations include coal mining, rail and inland
marine transportation services, and life insurance.

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