EXHIBIT 99.(b)

Florida Progress Corporation
Investor News

Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442

[CORPORATE LOGO OMITTED]

Florida Public Service Commission Approves 
  Pasco Cogen, Ltd. Settlement Agreement 

ST. PETERSBURG, Florida,  April 3, 1997 - On April 1, 1997, the Florida Public
Service Commission (FPSC) voted 3-2 to approve the negotiated settlement
agreement between Florida Power Corporation and Pasco Cogen, Ltd. (Pasco Cogen).

During the hearing several commissioners, including one of the commissioners who
dissented, recognized and applauded the initiative Florida Power has taken to
address the issue of high-cost cogeneration contracts.

Florida Power has been seeking ways to mitigate the impact of escalating
payments from cogeneration contracts.  One strategy the company is pursuing is
to buy down certain contracts to reduce the impact of escalating payments.  

In March 1991, Florida Power and Pasco Cogen entered into a 20-year contract for
purchase power.  Committed capacity under the contract is 109 megawatts.  In
October 1996 Florida Power and Pasco Cogen entered into a settlement agreement,
subject to approval by the FPSC, that resolved a dispute over a pricing
provision in the original contract.  The negotiated settlement agreement also
contained a provision for Florida Power to buy-out of the last four years and
seven months of the contract.

The negotiated settlement agreement is expected to result in long-term savings
of $183 million due to the buy-out of the last four years and seven months of
the contract.  Other benefits of the settlement include a curtailment of energy
during off-peak hours from 109 megawatts to 96 megawatts and a revised energy
pricing mechanism.  

                       OTHER COGENERATION CONTRACTS
                                     
Florida Power has two other cogeneration contracts that are before the FPSC that
involve buy-out proposals similar to those in the Pasco settlement.  In
addition, Florida Power has agreed, subject to FPSC approval, to acquire the
220-megawatt Tiger Bay cogeneration facility near Ft. Meade, Florida.  Tiger Bay
is Florida Power's largest cogeneration power supplier, representing more than
20 percent of the 1,050 megawatts of total capacity it receives from 16
cogenerators.  The FPSC has scheduled hearings on Tiger Bay for April 17 and 18.
The FPSC is expected to vote on whether to approve Florida Power's purchase of
the Tiger Bay facility at its June 10 Agenda Conference.

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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