EXHIBIT 99.(a)

Florida Progress Corporation
Investor News 

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


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Florida Public Service Commission Approves Buy-down of another Florida Power
Cogen Contract

ST. PETERSBURG, Florida, June 25, 1997 -- Yesterday, the Florida Public Service
Commission (FPSC) voted 3-2 in favor of Florida Power Corporation's petition to
buy down the last three years and seven months of a 110-megawatt purchased power
contract with Lake Cogen, Ltd.

Yesterday's approval by the FPSC is the third such approval received this year
concerning high-cost purchased power contracts for which Florida Power has
submitted cost-saving proposals to the FPSC.

In April, the FPSC approved a settlement agreement between Florida Power and
Pasco Cogen, Ltd.  The settlement agreement for this 109-megawatt purchased
power contract included the buy-down of the last four years and seven months.

In May, the FPSC approved the purchase of the 220-megawatt Tiger Bay
cogeneration plant located in Ft. Meade, Florida.  Florida Power intends to add
this plant to its fleet of fossil-fired power plants.  The Tiger Bay facility,
built in 1994, uses an advanced gas-fired combined-cycle technology.  Florida
Power expects to complete the purchase of the plant in July.  The purchase will
be funded primarily through the issuance of medium-term notes.

Florida Power has been aggressively seeking ways to reduce the long-term impact
of high-cost purchased power contracts that it was mandated to sign under
provisions of the Public Utility Regulatory Policies Act of 1978.  When combined
with the other approved settlements, the Lake Cogen settlement results in
Florida Power successfully mitigating about 440 megawatts, or more than 40
percent, of its 1,048 megawatts of commitments to 16 cogenerators.

Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.5 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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