EXHIBIT 99.(c)
FLORIDA POWER CORPORATION
NEWS RELEASE
Corporate Relations Department, St. Petersburg, Florida

                                                   Media Contact:
                                                   Melanie Forbrick 813/866-5023


    Parties Reach Agreement In Florida Power's Request For Fuel Cost Recovery

St. Petersburg, Fla. (June 19, 1997) -- Florida Power Corporation, the Attorney
General of the State of Florida, the Office of Public Counsel, the Florida
Industrial Power Users Group, the Florida Consumers Action Network, State
Senator Charlie Crist, the Lake Dora Harbour Homeowners Association, Inc., and
the American Association of Retired Persons have reached an agreement that
resolves all disputed issues in a case involving Florida Power's request to
collect replacement fuel and purchased power costs associated with the extended
outage of its Crystal River nuclear unit.
         The Florida Public Service Commission (FPSC) is expected to vote on the
proposed settlement at the earliest possible date. If the agreement is approved,
Florida Power will stop recovery of the portion of fuel charge associated with
the outage and immediately refund, with interest, money collected since the
increase went into effect on April 1. The company had been given permission to
collect approximately $2.22 per 1,000 kilowatt-hours on an interim basis. The
refund will be made as a one-time credit to the customer's electric bill.
         The agreement will allow the company to recover $33.8 million, plus
interest, of the estimated $170 million in replacement fuel costs expected to be
incurred during the outage that began in September 1996. The $33.8 million
represents replacement fuel costs from September, October and November of 1996.
The company will begin recovery of this money after the plant returns to
service, which is expected to be by the end of the year. In order to minimize
the impact on customers, the cost will be spread over 12 months as part of the
fuel charge on electric bills. The remaining unrecovered replacement fuel costs
will be deferred and amortized for up to 48 months and will not result in an
increase in customer bills.
         In order to offset a portion of the amortization, Florida Power will
temporarily suspend accruing its reserve for fossil plant dismantlement costs
for a period of four years. Prior to the end of the amortization period the
company will submit a study for use by the FPSC in establishing a revised
accrual to the dismantlement reserve. Any increase due to a deficiency in the
reserve will be absorbed by Florida Power.
         Florida Power Corporation President and CEO Joseph H. Richardson said,
"We are sensitive to the concerns our customers have expressed about paying
higher electricity prices while our nuclear plant is out of service. This
agreement is a positive step that addresses those concerns. It also gives us the
opportunity to focus our full attention on bringing the plant back into service
as soon as possible."

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Page 2
Florida Power Corporation
Parties Reach Agreement


         In addition to the refund, the company will maintain its current base
rates for the next four years. And as previously announced by Florida Power, its
customers will not bear additional costs related to the capital and non-fuel
operating and maintenance expenses associated with the nuclear plant outage. The
capital costs of the outage are estimated to be between $30 million and $45
million. The operating and maintenance expenses are estimated to be from $80
million to $100 million. The total cost of the outage, including capital,
operating and maintenance and replacement fuel, is expected to be between $280
million and $315 million.
         Florida Power Corporation is the principal subsidiary of St.
Petersburg-based Florida Progress Corporation (NYSE:FPC) and serves 1.2 million
customers in central and northern Florida.


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