EXHIBIT 99.(a) [CORPORATE LOGO OMITTED] Florida Progress Corporation Investor News Analyst Contacts: Mark A. Myers (813) 866-4245 Greg Beuris (813) 866-4442 Florida Progress reports second-quarter loss resulting from a one-time charge for nuclear outage costs St. Petersburg, Florida, July 15, 1997 -- Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported a loss of $38.2 million or $.39 a share for the second quarter of 1997. The loss for the quarter was due to recording $162 million for incremental charges associated with the extended outage of Florida Power's Crystal River nuclear plant. Excluding the impact of the extended outage, Florida Progress' earnings were $61.5 million, or $.63 a share, compared with $58.8 million or $.61 a share from continuing operations for the prior-year quarter. Significant items influencing second-quarter results: o Nuclear outage costs - Florida Power recorded $92 million in nuclear outage operating and maintenance costs in the second quarter of 1997. Florida Power also recorded a $70 million charge for non-recoverable replacement power costs. o Higher operating expenses at Florida Power - Operating and maintenance costs were up for the quarter because of planned fossil outage costs, service reliability improvements and costs associated with a new union contract. o Electric Fuels' earnings jumped 37 percent - Electric Fuels Corporation, the Florida Progress energy and transportation subsidiary, had second-quarter earnings of $9.2 million, compared with $6.7 million a year ago. Florida Power, the largest subsidiary of Florida Progress, reported a loss of $43.6 million for the quarter, or $.45 a share, after recording nuclear outage costs. The utility's only nuclear plant has been down since September 1996 to address design issues related to the plant's safety systems. In May 1997, Florida Power announced that it could spend as much as $100 million in 1997 for additional operating and maintenance costs related to the extended outage. In the first quarter of this year, the utility spent approximately $8 million in additional nuclear outage operating and maintenance expenses and recorded another $92 million during the second quarter. This represents the total amount of nuclear costs Florida Power expects to incur to return the plant to service by the end of 1997. In June 1997, the Florida Public Service Commission approved a settlement agreement between Florida Power and all parties who intervened in Florida Power's request to recover replacement power costs resulting from the extended outage of its nuclear plant. Florida Power expects to incur approximately $170 million in replacement power costs through the end of 1997. -- more -- Page 2 Florida Progress Corporation Investor News Florida Power wrote off $70 million in non-recoverable replacement power costs in the second quarter. Florida Power will collect approximately $35 million from customers upon return of the plant to service. The remaining amount will be amortized over a four-year period. The amortization will be offset by the suspension of fossil fuel dismantlement accruals during the four-year period. Attached is a schedule of significant Crystal River nuclear plant restart activities that has been updated to reflect progress on major restart activities. Some of the major accomplishments this quarter include completion of the System Readiness Reviews, timely filing of license submittals for several plant modifications and progress in reducing the backlog of maintenance requests. Florida Power is on schedule to return the unit to service by the end of 1997. For the second quarter, Florida Power earned $56.1 million or $.58 per share before recognizing the non-recurring costs associated with the extended nuclear outage. Florida Power's wholesale KWH sales were down 20 percent for the second quarter of 1997, compared with the same period last year. The lower sales were largely attributable to lower system requirements of the utility's wholesale customers resulting from milder weather. Retail KWH sales were up only 2 percent for the second quarter of 1997, compared with a year ago. The effect of milder-than-normal weather is limited mainly to Florida Power's wholesale sales because residential revenue decoupling eliminates the earnings impact that abnormal weather has on residential sales. Florida Power's residential revenue decoupling program is in the last year of a three-year test that was ordered by the Florida Public Service Commission. Continued customer growth combined with the adjustment for residential revenue decoupling largely offset the effect mild weather had on the utility's base revenues. Non-nuclear operating and maintenance costs were up about $13 million in the second quarter of 1997, compared with the same period last year. The higher costs are due to planned fossil plant outages, a lump-sum payment resulting from a new union contract and additional expenditures for tree trimming, pole and cable treatments which are designed to improve service reliability. Despite the higher non-nuclear operating and maintenance costs for the second quarter, Florida Power does not expect to exceed its spending target for 1997. Depreciation expense was lower for the second quarter of 1997, when compared with the same quarter in 1996. This is due primarily to the write-off of two oil-fired plants in the second quarter of 1996. Electric Fuels earned $9.2 million, or $.10 a share, in the second quarter of 1997 compared with $6.7 million or $.07 per share, in 1996. The improved results were realized from its inland marine transportation and rail services business units. The strong results for the second quarter helped to offset some of the adverse effects of the March flooding which lowered earnings for the first quarter of 1997. -- more -- Page 3 Florida Progress Corporation MEMCO, Electric Fuels' inland marine transportation subsidiary, has been expanding its fleet of barges and tow boats that operate along the Ohio and Mississippi rivers. During the second quarter of 1997, MEMCO had approximately 100 additional barges in service, compared with the same period in 1996. The Rail Services group, which serves the country's major railroads, is expanding through acquisitions and increased sales in its existing operations. Improved earnings from this group for the second quarter were due primarily to the acquisition of a recycling facility in August 1996 and increased production at a new track work facility. OTHER NEWS In June 1997, Florida Progress filed an appeal with the Oklahoma Supreme Court of the decision of an Oklahoma County District Court that Mid-Continent Life Insurance Company, a Florida Progress subsidiary, remain in receivership. As of June 30, 1997, Florida Progress' investment in Mid-Continent was approximately $85 million. A decision from the Oklahoma Supreme Court is not expected before the fourth quarter of 1997. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: this news release contains forward looking statements, including expenditures related to the restart of Florida Power's Crystal River nuclear unit and the expected date of restart of the unit. These statements involve risks and uncertainties that could cause actual results or outcomes to differ materially from expectations. Key factors that have a direct impact on the company's ability to return the unit to service before the end of 1997 include successful execution of the restart plan, actions of regulatory bodies, absence of new plant modifications that extend the outage beyond 1997 and other factors described in the company's Securities and Exchange Commission filings. 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. FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 4 (In millions, except per share amounts) Three Months Ended Six Months Ended Twelve Months Ended June 30 June 30 June 30 ------------------- ------------------- ------------------- (UNAUDITED) 1997 1996 1997 1996 1997 1996 -------- -------- -------- -------- -------- -------- REVENUES: Electric utility $597.2 $588.7 $1,151.0 $1,136.0 $2,408.6 $2,341.3 Diversified 200.1 184.9 393.8 368.0 790.1 746.2 --------- --------- --------- --------- --------- --------- 797.3 773.6 1,544.8 1,504.0 3,198.7 3,087.5 EXPENSES: --------- --------- --------- --------- --------- --------- Electric utility: Fuel 118.8 90.7 213.7 175.6 447.8 411.1 Purchased power 116.8 137.7 244.0 260.6 515.0 494.1 Energy conservation cost 16.6 17.1 27.6 36.8 53.4 79.5 Operations and maintenance 110.7 97.8 213.1 198.2 428.3 396.5 Extended nuclear outage - O&M and replacement fuel costs 162.3 - 170.2 - 170.2 - Depreciation 74.2 89.2 148.5 166.8 305.9 319.0 Taxes other than income taxes 48.6 45.2 96.7 92.4 187.9 180.8 --------- --------- --------- --------- --------- --------- 648.0 477.7 1,113.8 930.4 2,108.5 1,881.0 --------- --------- --------- --------- --------- --------- Diversified: Cost of sales 169.1 154.3 340.9 309.4 674.4 629.8 Provision for loss on coal properties - - - - 40.9 - Other 14.8 16.6 29.7 32.0 64.3 62.7 --------- --------- --------- --------- --------- --------- 183.9 170.9 370.6 341.4 779.6 692.5 --------- --------- --------- --------- --------- --------- INCOME (LOSS) FROM OPERATIONS (34.6) 125.0 60.4 232.2 310.6 514.0 --------- --------- --------- --------- --------- --------- INTEREST EXPENSE AND OTHER: Interest expense 35.8 34.2 70.1 68.8 137.2 137.0 Allowance for funds used during construction (2.3) (1.9) (4.4) (3.6) (8.3) (7.1) Preferred dividend requirements of Florida Power 0.4 2.1 0.8 4.4 2.2 9.2 Gain on sale of business - - - - (44.2) - Other expense (income) (0.7) (1.4) (0.3) (4.7) 0.1 (9.2) --------- --------- --------- --------- --------- --------- 33.2 33.0 66.2 64.9 87.0 129.9 --------- --------- --------- --------- --------- --------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (67.8) 92.0 (5.8) 167.3 223.6 384.1 Income Taxes (29.6) 33.2 (9.6) 60.3 76.0 140.0 --------- --------- --------- --------- --------- --------- INCOME (LOSS) FROM CONTINUING OPERATIONS (38.2) 58.8 3.8 107.0 147.6 244.1 DISCONTINUED OPERATIONS, NET OF INCOME TAXES - (25.0) - (25.0) (1.3) (25.0) --------- --------- --------- --------- --------- --------- NET INCOME (LOSS) ($38.2) $33.8 $3.8 $82.0 $146.3 $219.1 ========= ========= ========= ========= ========= ========= AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.1 96.8 97.0 96.6 97.0 96.4 ========= ========= ========= ========= ========= ========= EARNINGS PER AVERAGE COMMON SHARE CONTINUING OPERATIONS ($0.39) $0.61 $0.04 $1.11 $1.52 $2.53 DISCONTINUED OPERATIONS - (0.26) - (0.26) (0.01) (0.26) --------- --------- --------- --------- --------- --------- ($0.39) $0.35 $0.04 $0.85 $1.51 $2.27 ========= ========= ========= ========= ========= ========= Regarding these financial statements: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. These are interim statements. Reference should be made to Florida Progress Corporation's 1996 Annual Report to shareholders. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities. /TABLE FLORIDA PROGRESS CORPORATION CONSOLIDATED BALANCE SHEETS Page 5 (In millions) June 30 ------------------------- (UNAUDITED) 1997 1996 ----------- ----------- ASSETS PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held for $5,994.8 $5,892.2 for future use Less - Accumulated depreciation 2,440.2 2,276.4 Accumulated decommissioning for nuclear plant 207.1 178.3 Accumulated dismantlement for fossil plants 127.9 112.5 ---------- ---------- 3,219.6 3,325.0 Construction work in progress 240.6 174.3 Nuclear fuel, net of amortization of $356.7 in 1997 and $352.6 in 1996 63.7 64.0 ---------- ---------- Net electric utility plant 3,523.9 3,563.3 Other property, net of depreciation of $186.7 in 1997 and $164.7 in 1996 332.5 310.4 ---------- ---------- 3,856.4 3,873.7 ---------- ---------- CURRENT ASSETS: Cash and equivalents 19.1 8.8 Accounts receivable, net 326.7 298.2 Inventories, primarily at average cost: Fuel 87.1 77.6 Utility materials and supplies 95.0 96.7 Diversified materials 138.1 129.8 Underrecovery of fuel cost 59.0 57.6 Deferred income taxes 60.8 32.5 Other 18.0 15.0 ---------- ---------- 803.8 716.2 ---------- ---------- DISCONTINUED OPERATIONS: Advances to discontinued operations - 127.1 Net assets of discontinued operations - 180.6 ---------- ---------- - 307.7 ---------- ---------- OTHER ASSETS: Investments: Loans receivable, net 35.0 30.7 Marketable securities 238.6 195.1 Nuclear plant decommissioning fund 232.5 183.3 Joint ventures and partnerships 53.2 35.8 Deferred insurance policy acquisition costs 123.9 115.0 Other 185.7 158.0 ---------- ---------- 868.9 717.9 ---------- ---------- $5,529.1 $5,615.5 ========== ========== CAPITAL AND LIABILITIES CAPITAL: Common stock equity $1,826.2 $2,073.0 Cumulative preferred stock of Florida Power 33.5 58.5 Long-term debt 1,826.5 1,687.0 ---------- ---------- 3,686.2 3,818.5 ---------- ---------- CURRENT LIABILITIES: Accounts payable 216.1 186.9 Customers' deposits 95.1 88.6 Income taxes payable 10.5 26.1 Accrued other taxes 51.6 53.8 Accrued interest 37.2 46.0 Accrued nuclear outage operation and maintenance costs 72.4 - Other 68.8 83.2 ---------- ---------- 551.7 484.6 Notes payable 94.2 - Current portion of long-term debt 25.0 193.8 ---------- ---------- 670.9 678.4 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 462.7 490.5 Unamortized investment tax credits 89.5 97.5 Insurance policy benefit reserves 356.1 295.7 Other postretirement benefit costs 103.9 87.9 Other 159.8 147.0 ---------- ---------- 1,172.0 1,118.6 ---------- ---------- $5,529.1 $5,615.5 ========== ========== FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Page 6 (In millions) Three Months Ended Six Months Ended Twelve Months Ended June 30 June 30 June 30 ------------------- ------------------- ------------------- (UNAUDITED) 1997 1996 1997 1996 1997 1996 -------- -------- -------- -------- -------- -------- OPERATING ACTIVITIES: Income (loss) from continuing operations ($38.2) $58.8 $3.8 $107.0 $147.6 $244.1 Adjustments for noncash items: Depreciation and amortization 83.1 99.6 166.3 187.6 345.4 369.8 Extended nuclear outage - O&M and replacement fuel costs 142.6 - 142.6 - 142.6 - Gain on sale of business - - - - (44.2) - Provision for loss on coal properties - - - - 40.9 - Deferred income taxes and investment tax credits, net (36.5) (19.4) (48.8) (26.3) (79.1) (43.7) Increase in accrued other postretirement benefit costs 1.9 1.7 3.9 3.4 16.0 12.0 Net change in deferred insurance policy acquisition costs (0.9) (6.4) (3.0) (8.6) (8.9) (14.5) Net change in insurance policy benefit reserves 14.8 17.9 30.8 30.7 60.4 52.9 Changes in working capital, net of effects from acquisition or sale of businesses: Accounts receivable (43.9) (3.0) (59.4) 8.5 (32.5) 4.8 Inventories (5.0) (34.5) (30.0) (31.5) (9.4) (42.6) Underrecovery of fuel cost (23.6) (38.3) (46.6) (57.3) (71.6) (49.2) Accounts payable 25.8 33.7 21.8 21.4 22.0 30.3 Income taxes payable (26.3) (17.8) (16.9) 21.2 (14.8) 4.1 Accrued other taxes 19.2 18.0 38.2 38.2 (2.3) 6.3 Other (10.9) (10.6) (13.1) (12.3) (14.3) 6.6 Other operating activities 4.1 12.0 5.8 23.1 (36.6) 24.2 --------- --------- --------- --------- --------- --------- Cash provided by continuing operations 106.2 111.7 195.4 305.1 461.2 605.1 --------- --------- --------- --------- --------- --------- Loss from discontinued operations - (25.0) - (25.0) (1.3) (25.0) Adjustments for non-cash items - 19.9 - 7.4 10.0 (13.1) --------- --------- --------- --------- --------- --------- Cash provided by (used for) discontinued operations - (5.1) - (17.6) 8.7 (38.1) --------- --------- --------- --------- --------- --------- 106.2 106.6 195.4 287.5 469.9 567.0 --------- --------- --------- --------- --------- --------- INVESTING ACTIVITIES: Property additions (including allowance for borrowed funds used during construction) (93.7) (64.7) (188.5) (135.4) (317.1) (319.6) Purchases of loans and securities, net (including (issuance) repayment of Echelon note) 16.3 (2.4) 11.8 (14.2) (44.4) (32.9) Proceeds from sales of properties and businesses 2.0 2.8 4.2 6.1 59.2 12.9 Acquisition of businesses (14.3) (3.2) (14.3) (3.2) (64.9) (6.6) Distributions from (investments in) joint ventures and partnerships, net (3.3) (1.2) (12.6) (1.2) (20.8) (2.9) Investing activities of discontinued operations - 5.3 - 12.0 44.5 38.3 Other investing activities (4.8) (4.7) (9.7) (18.0) (19.3) (23.5) --------- --------- --------- --------- --------- --------- (97.8) (68.1) (209.1) (153.9) (362.8) (334.3) --------- --------- --------- --------- --------- --------- FINANCING ACTIVITIES: Issuance of long-term debt - - - - 178.0 - Repayment of long-term debt (0.7) (0.6) (22.2) (2.1) (210.5) (27.0) Increase (decrease) in commercial paper with long-term support 7.1 87.4 61.7 46.7 (0.3) 93.1 Redemption of preferred stock - (80.9) - (80.9) (25.5) (85.9) Sale of common stock - 9.3 - 18.6 - 38.0 Equity contributions to discontinued operations - - - - (23.7) - Dividends paid on common stock (50.9) (50.0) (101.9) (99.7) (201.7) (196.7) Increase (decrease) in short-term debt 38.3 - 90.1 - 94.2 (41.1) Financing activities of discontinued operations - - - (10.2) 95.4 (11.5) Other financing activities 0.4 (0.8) (0.1) (1.5) (2.7) (2.8) --------- --------- --------- --------- --------- --------- (5.8) (35.6) 27.6 (129.1) (96.8) (233.9) --------- --------- --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 2.6 2.9 13.9 4.5 10.3 (1.2) Beginning cash and equivalents 16.5 5.9 5.2 4.3 8.8 10.0 --------- --------- --------- --------- --------- --------- ENDING CASH AND EQUIVALENTS $19.1 $8.8 $19.1 $8.8 $19.1 $8.8 ========= ========= ========= ========= ========= ========= Florida Progress Corporation Selected Financial Information (Unaudited) Page 7 Three Months Ended Percent Six Months Ended Percent Twelve Months Ended Percent June 30 Positive June 30 Positive June 30 Positive 1997 1996 (Negative 1997 1996 (Negative 1997 1996 (Negative) -------- --------- -------- --------- --------- -------- --------- --------- --------- Earnings Per Share: Florida Power Corporation ($0.45) $0.56 (180.4) ($0.02) $1.00 (102.0) $1.38 $2.31 (40.3) --------- --------- --------- --------- --------- --------- Electric Fuels Corporation 0.10 0.07 42.9 0.13 0.14 (7.1) 0.27 0.27 - Mid-Continent Life Insurance Co. - 0.01 (100.0) - 0.02 (100.0) 0.01 0.04 (75.0) Corporate and other (0.04) (0.03) (33.3) (0.07) (0.05) (40.0) (0.12) (0.09) (33.3) --------- --------- --------- --------- --------- --------- Diversified Continuing 0.06 0.05 20.0 0.06 0.11 (45.5) 0.16 0.22 (27.3) --------- --------- --------- --------- --------- --------- Continuing Ops before non-recurring (0.39) 0.61 (163.9) 0.04 1.11 (96.4) 1.54 2.53 (39.1) Provision for loss on coal properties - - - - - - (0.26) - - Gain on sale of business - - - - - - 0.24 - - --------- --------- --------- --------- --------- --------- Total Continuing Operations (0.39) 0.61 (163.9) 0.04 1.11 (96.4) 1.52 2.53 (39.9) Discontinued Operations - (0.26) - - (0.26) - (0.01) (0.26) - --------- --------- --------- --------- --------- --------- ($0.39) $0.35 (211.4) $0.04 $0.85 (95.3) $1.51 $2.27 (33.5) ========= ========= ========= ========= ========= ========= Avg. shares outstanding (millions) 97.1 96.8 0.3 97.0 96.6 0.4 97.0 96.4 0.6 Dividends per share $0.525 $0.515 1.9 $1.05 $1.03 1.9 $2.08 $2.04 2.0 Book value per share: Florida Power Corporation $17.79 $18.35 (3.0) Consolidated $18.82 $21.37 (11.9) June 30 June 30 June 30 1997 1996 1997 1996 Amount Percent Amount Percent --------- --------- --------------------------------------- Equity investments (percent): Florida Power Corporation 87 87 $1,826.2 48.0 $2,073.0 51.7 Electric Fuels Corporation 9 9 33.5 0.9 58.5 1.5 Mid-Continent Life Insurance Co. 4 4 1,826.5 48.0 1,687.0 42.0 --------- --------- 119.2 3.1 193.8 4.8 Total 100 100 --------------------------------------- ========= ========= $3,805.4 100.0 $4,012.3 100.0 ======================================= Note: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. Florida Power Corporation Selected Statistical Data (Unaudited) Page 8 (In millions, except billing degree days) Three Months Ended Six Months Ended Twelve Months Ended June 30 Percent June 30 Percent June 30 Percent 1997 1996 Change 1997 1996 Change 1997 1996 Change ------- ------- ------- ------- ------- ------- ------- ------- ------- Revenues: Residential $306.3 $296.3 3.4 $597.0 $612.3 (2.5) $1,289.0 $1,264.4 1.9 Commercial 145.4 131.7 10.4 269.6 246.8 9.2 560.1 522.6 7.2 Industrial 55.1 51.9 6.2 107.0 99.7 7.3 214.1 197.5 8.4 Other retail sales 34.1 30.8 10.7 63.9 57.8 10.6 132.0 119.2 10.7 --------- --------- -------------------- -------------------- 540.9 510.7 5.9 1,037.5 1,016.6 2.1 2,195.2 2,103.7 4.3 Sales for resale 20.3 37.1 (45.3) 57.4 80.1 (28.3) 137.2 174.9 (21.6) --------- --------- -------------------- -------------------- 561.2 547.8 2.4 1,094.9 1,096.7 (.2) 2,332.4 2,278.6 2.4 Other electric revenues 39.7 25.1 58.2 52.5 33.0 59.1 72.7 64.9 12.0 Deferred fuel (3.7) 15.8 - 3.6 6.3 - 3.5 (2.2) - --------- --------- -------------------- -------------------- Total $597.2 $588.7 1.4 $1,151.0 $1,136.0 1.3 $2,408.6 $2,341.3 2.9 ========= ========= ==================== ==================== Kilowatt-hour sales billed: Residential 3,363.7 3,541.1 (5.0) 6,660.0 7,460.6 (10.7) 14,680.8 15,489.0 (5.2) Commercial 2,269.0 2,215.3 2.4 4,263.4 4,104.2 3.9 9,007.2 8,734.2 3.1 Industrial 1,074.1 1,099.8 (2.3) 2,124.0 2,100.7 1.1 4,247.0 4,103.1 3.5 Other retail sales 569.8 558.2 2.1 1,087.2 1,039.0 4.6 2,279.9 2,141.3 6.5 --------- --------- -------------------- -------------------- 7,276.6 7,414.4 (1.9) 14,134.6 14,704.5 (3.9) 30,214.9 30,467.6 (.8) Sales for resale 307.1 529.1 (42.0) 839.0 1,281.7 (34.5) 2,265.0 3,305.6 (31.5) --------- --------- -------------------- -------------------- Total electric sales 7,583.7 7,943.5 (4.5) 14,973.6 15,986.2 (6.3) 32,479.9 33,773.2 (3.8) ========= ========= ==================== ==================== System Requirements (KWH) 8,535 8,578 (.5) 16,055 16,808 (4.5) 33,963 34,677 (2.1) Retail KWH Sales (Billed & Unbilled) 7,739 7,585 2.0 14,526 14,803 (1.9) 30,336 30,580 (.8) Billing Degree Days: Cooling 470 819 (42.6) 495 819 (39.6) 3,358 3,864 (13.1) Heating 12 108 (88.9) 309 761 (59.4) 407 882 (53.9) Note: Total revenues include billed revenues and unbilled revenues that are accrued for accounting purposes. Statistics for total kilowatt-hour sales include only billed kilowatt-hour sales. The statistic for retail KWH sales includes both billed and unbilled sales. Beginning in 1995, Florida Power was ordered by state regulators to conduct a three-year test of residential revenue decoupling. Under the plan, abnormal weather variances will no longer impact earnings with respect to residential revenues. Florida Power Corporation Crystal River Nuclear Plant Key Restart Activities LICENSE COMPLETION PERCENTAGE Physical Modifications - (8) design issues. SUBMITTALS FIELD WORK TARGET COMPLETE - ------------------------------------------------------------------------------------------------------------------------------------ 1. Emergency feedwater system upgrades and diesel generator load impact. COMPLETE MAY - AUG SEP 75% 2. Emergency diesel generator loading. COMPLETE MAR - SEP SEP 70% 3. Low pressure injection mission time. COMPLETE NONE JUN 90% 4. Reactor building spray pump net positive suction head. AUG APR - AUG AUG 90% 5. High pressure injection pump recirculation NONE SEP - OCT NOV 25% to the reactor building sump. 6. High pressure injection system modifications to COMPLETE MAY - NOV NOV 45% improve small break loss of coolant accident margins. 7. Failure modes and effects of Loss Of DC Power JUL - AUG NONE SEP 90% 8. Generic Letter 96-06 - Containment Penetrations JUL APR - SEP SEP 65% - ------------------------------------------------------------------------------------------------------------------------------------ DISCOVERY " System Readiness & Review - ""Extent of condition""" PHASE - ------------------------------------------------------------------------------------- Level 1 reviews (8 systems) COMPLETE Level 2 reviews (18 systems) COMPLETE Level 3 reviews (79 systems) COMPLETE - ------------------------------------------------------------------------------------- System Checks and Power Ascension START FINISH COMMENTS - ----------------------------------------------------------------------------------------------------------------------------- System Lineups, Heatup & Testing JUL DEC 13 OF 105 SYSTEMS TURNED Secondary Systems Testing SEP SEP OVER TO OPERATIONS Startup & Power Escalation DEC DEC - ----------------------------------------------------------------------------------------------------------------------------- Other Significant Activities START FINISH COMMENTS - ------------------------------------------------------------------------------------------------------------------------------ Steam generator testing JUN JUL TESTING COMPLETE Reduce maintenance backlog to less than 200 items JAN DEC CURRENTLY AT 605 ITEMS, DOWN FROM 800 - ------------------------------------------------------------------------------------------------------------------------------ -