EXHIBIT 99.(b) Florida Progress Corporation Investor News Analyst Contacts: Mark Myers (813) 866-4245 Greg Beuris (813) 866-4442 [LOGO OMITTED] Florida Progress reports 1997 earnings Florida Power receives final license amendment approval for its Crystal River nuclear plant St. Petersburg, Florida, January 26, 1998 -- Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported 1997 earnings before non-recurring items of $254.3 million, or $2.62 a share, compared with $252.4 million, or $2.61 per share, for the same 12-month period last year. Florida Progress recorded two significant charges in 1997. Costs associated with the extended outage at Florida Power's Crystal River nuclear plant and the provision for loss related to Mid-Continent Life Insurance Company combined to reduce earnings by $2.06 a share. Florida Progress' core utility and diversified operations are now better positioned for improved results in 1998. Significant items : o Nuclear plant close to restart - Florida Power has received approval on all license submittals necessary before returning the plant to service. Outage related charges reduced Florida Power's earnings by $1.10 per share in 1997. o More than 22,000 new customers added in 1997 - Strong customer growth in the Central Florida areas around Orlando represented about one-third of the utility's new customers. o Purchased power commitments reduced - Through the buy-out of the Tiger Bay purchased power contracts, Florida Power reduced its long-term purchased power commitments by 20 percent. The utility also wrote-off $20 million of the contract termination costs in the fourth quarter. o Electric Fuels' earnings up 18 percent - Expanding rail services operations and increased volume of coal transported resulted in higher earnings. o Loss provision for Mid-Continent - Florida Progress recorded a provision for the loss of its investment in Mid-Continent and accrued for legal costs, resulting in a $.96 per share charge to 1997 earnings. -- more -- Page 2 Florida Progress Corporation Investor News - 1997 Earnings FLORIDA POWER CORPORATION Florida Power, the largest subsidiary of Florida Progress, reported earnings before nuclear outage costs of $240.9 million, or $2.48 per share, compared with earnings of $232.6 million, or $2.40 per share, in 1996. This reflects an increase of 3.3 percent over 1996 earnings per share. Florida Power's kilowatt-hour sales for 1997 were essentially level with 1996 energy sales despite the addition of more than 22,000 retail customers. The lack of kilowatt-hour sales growth in 1997 was due largely to weather, which was milder in 1997 when compared to 1996. Normally, Florida Power's revenues are heavily influenced by weather, especially its effect on usage by residential customers. However, for the last three years Florida Power has been recognizing residential revenues based on the number of residential customers instead of kilowatt-hour sales. This method, called residential revenue decoupling, was ordered by the Florida Public Service Commission as part of a three-year experiment, which began in 1995 and ended in 1997. Florida Power does not intend to seek approval to continue this method beyond 1997. For 1997, residential revenue decoupling offset the effect weather had on residential customer usage and, as a result, residential base revenues were $21.3 million higher than if the utility had not used this method. The milder weather in 1997 did result in lower wholesale kilowatt-hour sales and base revenues when compared with 1996. Lower demand from these customers reduced wholesale revenues by $9.2 million when compared with 1996. Florida Power's 1997 O&M expenses, excluding nuclear outage costs, were up $8.9 million or 2 percent over 1996. The increase included additional O&M costs associated with Florida Power's purchase of the Tiger Bay facility. The price of the Tiger Bay plant and contract termination costs totaled $445 million. Tiger Bay was Florida Power's largest cogeneration supplier representing more than 20-percent of the company's total capacity received from qualified facilities. Approximately $370 million of the $445 million was for contract termination costs. Of this amount, approximately $350 million, along with interest charges, will be recovered from ratepayers over the next ten years. The additional O&M costs related to Tiger Bay as well as depreciation charges and property taxes related to the remaining $75 million of the purchase price, are expected to be about $20 million annually. Depreciation expense in 1997 and 1996 included the amortization of certain regulatory assets. -- more -- Page 3 Florida Progress Corporation Investor News - 1997 Earnings In 1997, Florida Power wrote-off approximately $20 million of contract termination costs related to the Tiger Bay purchase power agreement. In 1996, Florida Power amortized approximately $31 million related to the shutdown of two oil-fired power plants and a canceled transmission line. Florida Power's nuclear plant was out of service during 1997 to address certain backup safety system design issues. During the extended outage, Florida Power incurred $100 million in additional O&M costs at its nuclear plant. While most of these costs were necessary to fully address safety system design issues, Florida Power also performed work that should enable the plant to be a productive asset in the future. Florida Power has received the approvals from the NRC necessary to proceed to Mode 2, the point at which reactor startup would commence. Florida Power has formally requested permission to startup the reactor once it receives approval from the NRC. Once Florida Power receives approval from the NRC to startup the reactor, the company expects the plant to be back in service in approximately two weeks. In addition to the higher O&M costs related to the outage, Florida Power expensed approximately $73 million of non-recoverable replacement power costs during 1997. This was in accordance with the terms of a settlement agreement between Florida Power and several intervening parties. Interest expense at Florida Power increased $18.9 million in 1997 when compared with 1996. The increase is due largely to higher debt balances at Florida Power, which resulted from the issuance of medium-term notes for the purchase of Tiger Bay and higher O&M expenses because of the extended outage. Florida Power is recovering $350 million of the acquisition costs of Tiger Bay and related interest charges through its capacity cost recovery clause. In 1997, $10.8 million in interest charges were recovered from ratepayers through this pass-through clause. ELECTRIC FUELS CORPORATION Electric Fuels earned $32.1 million, or $.33 a share, in 1997, compared with $27.1 million before a provision for loss on coal properties, or $.28 per share, in 1996. The 18 percent improvement in 1997 earnings per share over 1996 resulted from the expansion of Electric Fuels' rail services business unit and higher volumes of coal transported by the company's energy and related services business unit. Electric Fuels' inland marine transportation business unit, reported lower earnings for 1997 compared with 1996, due largely to the effect of flooding along the Ohio and Mississippi rivers during the first quarter of 1997. MEMCO, the principal subsidiary in -- more -- Page 4 Florida Progress Corporation Investor News - 1997 Earnings this group, expanded its barge fleet in 1997 to 900 barges, up from about 700 at the end of 1996 and intends to purchase another 200 barges in 1998. Progress Rail, which is one of the largest integrated processors and suppliers of railroad materials in the country, acquired the assets of a metal recycling and railcar scrapping business in the second half of 1996. This acquisition, along with other smaller acquisitions in 1997, contributed to the improvement in 1997 earnings over 1996. Higher tonnage of coal transported in 1997 boosted the results at Electric Fuels' river terminals. The higher volume was due largely to increased coal requirements of Florida Power's four coal-fired units located in Crystal River, Florida. The lack of availability of its nuclear plant during 1997 forced Florida Power to increase generation among its other generation resources including the coal plants at Crystal River. MID-CONTINENT LIFE INSURANCE COMPANY Florida Progress believes its investment in Mid-Continent has been impaired. Even though Mid-Continent was placed in receivership in April 1997, the Oklahoma Insurance Commissioner has not yet filed a plan of rehabilitation as ordered by the Oklahoma district court. In addition, the Commissioner filed a lawsuit in December 1997 against Florida Progress and other defendants. As a result of the continuing passage of time without a rehabilitation plan and other actions of the Commissioner, Florida Progress established a loss provision for the full amount of its $87 million investment in Mid-Continent and accrued for estimated legal costs for pending litigation in the fourth quarter. The impact of the loss provision and accrual for legal costs reduced 1997 earnings by $.96 a share. CORPORATE AND OTHER The loss attributable to corporate and other diversified activities increased $.10 a share in 1997 compared with 1996. The increase is primarily attributable to the loss of earnings from Advanced Separation Technologies, Inc., which was sold in 1996, and a loss associated with an investment in a generation facility, of which the company has a minority interest. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: this news release contains forward looking statements, including statements regarding the purchase of barges by MEMCO, the restart of the nuclear unit and the future productivity of the nuclear plant. 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 actual results at Florida Power include various factors that could impact the successful execution of the nuclear restart plan and the future productivity of the nuclear plant, primarily the actions of the NRC. -- more -- Page 5 Florida Progress Corporation Investor News - 1997 Earnings A key factor influencing the future operations of MEMCO include future demand for barge transportation services along the Ohio and Mississippi rivers. These and other factors are 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 $5.8 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 and rail services. ### FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 6 (UNAUDITED) (In millions, except per share amounts) Three Months Ended Twelve Months Ended December 31 December 31 ----------------------- ----------------------- 1997 1996 1997 1996 ----------- ----------- ----------- ----------- REVENUES: Electric utility $ 590.5 $ 562.9 $ 2,448.4 $ 2,393.6 Diversified 257.8 212.0 867.2 764.3 - ---------------------------------------------------------------------------------------------------------------- 848.3 774.9 3,315.6 3,157.9 - ---------------------------------------------------------------------------------------------------------------- EXPENSES: Electric utility: Fuel 114.9 86.7 458.1 409.7 Purchased power 112.9 143.4 490.6 531.6 Energy conservation cost 17.7 11.5 67.0 62.6 Operations and maintenance 103.7 109.2 422.3 413.4 Extended nuclear outage - O&M and replacement power costs 3.1 - 173.3 - Depreciation 98.6 82.7 325.9 324.2 Taxes other than income taxes 43.7 40.5 193.6 183.6 - ---------------------------------------------------------------------------------------------------------------- 494.6 474.0 2,130.8 1,925.1 - ---------------------------------------------------------------------------------------------------------------- Diversified: Cost of sales 226.0 180.0 753.9 642.9 Provision for loss on coal properties - 40.9 - 40.9 Loss related to life insurance subsidiary 96.3 - 97.6 - Other 18.2 19.1 60.7 66.6 - ---------------------------------------------------------------------------------------------------------------- 340.5 240.0 912.2 750.4 - ---------------------------------------------------------------------------------------------------------------- INCOME FROM OPERATIONS 13.2 60.9 272.6 482.4 - ---------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE AND OTHER: Interest expense 46.3 32.5 158.7 135.9 Allowance for funds used during construction (2.8) (2.0) (9.7) (7.5) Preferred dividend requirements of Florida Power .4 .6 1.5 5.8 (Gain) on sale of business - (44.2) - (44.2) Other expense (income) 3.3 .9 1.4 (4.2) - ---------------------------------------------------------------------------------------------------------------- 47.2 (12.2) 151.9 85.8 - ---------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (34.0) 73.1 120.7 396.6 Income taxes 17.5 27.5 66.4 145.9 - ---------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS (51.5) 45.6 54.3 250.7 DISCONTINUED OPERATIONS, NET OF INCOME TAXES - (1.3) - (26.3) ================================================================================================================ NET INCOME (LOSS) $ (51.5) $ 44.3 $ 54.3 $ 224.4 - ---------------------------------------------------------------------------------------------------------------- AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.1 97.0 97.1 96.8 - ---------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) PER AVERAGE COMMON SHARE: CONTINUING OPERATIONS $(.53) $.47 $.56 $2.59 DISCONTINUED OPERATIONS - (.01) - (.27) - ---------------------------------------------------------------------------------------------------------------- $(.53) $.46 $.56 $2.32 ================================================================================================================ Regarding these financial statements: Prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. Effective December 31, 1997, the Company deconsolidated the accounts of Mid-Continent Life Insurance Company and established a provision for loss for the full amount of its investment. The deconsolidation has not been reflected in the consolidated financial statements of prior periods. 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. FLORIDA PROGRESS CORPORATION CONSOLIDATED BALANCE SHEETS Page 7 (UNAUDITED) (In millions) December 31 ---------------------------- ASSETS 1997 1996 ------------ ------------ PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held for future use $ 6,166.8 $ 5,965.6 Less - Accumulated depreciation 2,511.0 2,335.8 Accumulated decommissioning for nuclear plant 223.7 193.3 Accumulated dismantlement for fossil plants 128.5 119.6 - ------------------------------------------------------------------------------------------------------------ 3,303.6 3,316.9 Construction work in progress 279.4 140.3 Nuclear fuel, net of amortization of $356.7 in 1997 and 1996 66.5 59.9 - ------------------------------------------------------------------------------------------------------------ Net electric utility plant 3,649.5 3,517.1 Other property, net of depreciation of $219.3 in 1997 and $173.8 in 1996 437.7 309.3 - ------------------------------------------------------------------------------------------------------------ 4,087.2 3,826.4 - ------------------------------------------------------------------------------------------------------------ CURRENT ASSETS: Cash and equivalents 3.1 5.2 Accounts receivable, net 373.7 265.0 Inventories, primarily at average cost: Fuel 77.6 67.1 Utility materials and supplies 91.9 95.4 Diversified materials 126.8 125.5 Underrecovery of fuel cost 34.5 82.6 Income taxes receivable 16.8 - Deferred income taxes 5.8 35.6 Other 45.1 12.6 - ------------------------------------------------------------------------------------------------------------ 775.3 689.0 - ------------------------------------------------------------------------------------------------------------ OTHER ASSETS: Investments: Loans receivable, net 24.0 68.1 Marketable securities - 217.9 Nuclear plant decommissioning fund 266.7 207.8 Joint ventures and partnerships 54.6 41.9 Deferred insurance policy acquisition costs - 120.9 Deferred purchased power contract termination costs 348.2 - Other 204.0 176.4 - ------------------------------------------------------------------------------------------------------------ 897.5 833.0 - ------------------------------------------------------------------------------------------------------------ $ 5,760.0 $ 5,348.4 ============================================================================================================ CAPITAL AND LIABILITIES CAPITAL: Common stock equity $ 1,776.0 $ 1,924.2 Cumulative preferred stock of Florida Power 33.5 33.5 Long-term debt 2,377.8 1,776.9 - ------------------------------------------------------------------------------------------------------------ 4,187.3 3,734.6 - ------------------------------------------------------------------------------------------------------------ CURRENT LIABILITIES: Accounts payable 253.2 193.2 Customers' deposits 97.1 81.8 Income taxes payable - 27.8 Accrued other taxes 12.0 13.4 Accrued interest 56.8 48.3 Other 74.8 78.5 - ------------------------------------------------------------------------------------------------------------ 493.9 443.0 Notes payable 214.8 4.1 Current portion of long-term debt 15.2 34.9 - ------------------------------------------------------------------------------------------------------------ 723.9 482.0 - ------------------------------------------------------------------------------------------------------------ DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 471.2 475.4 Unamortized investment tax credits 85.7 93.5 Insurance policy benefit reserves - 325.3 Other postretirement benefit costs 107.4 100.0 Other 184.5 137.6 - ------------------------------------------------------------------------------------------------------------ 848.8 1,131.8 - ------------------------------------------------------------------------------------------------------------ $ 5,760.0 $ 5,348.4 ============================================================================================================ FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Page 8 (UNAUDITED) (In millions) Three Months Ended Twelve Months Ended December 31 December 31 ------------------------ ------------------------ 1997 1996 1997 1996 ------------ ----------- ----------- ----------- OPERATING ACTIVITIES: Income (loss) from continuing operations $ (51.5) $ 45.6 $ 54.3 $ 250.7 Adjustments for noncash items: Depreciation and amortization 109.3 91.6 364.2 366.7 Extended nuclear outage - O&M and replacement power costs (36.2) - 73.3 - Provision for loss on investment in life insurance subsidiary 86.9 - 86.9 - Gain on sale of business - (44.2) - (44.2) Provision for loss on coal properties - 40.9 - 40.9 Deferred income taxes and investment tax credits, net 5.5 (19.4) (30.7) (56.6) Increase in accrued other postretirement benefit costs 2.0 3.6 8.6 15.5 Net change in deferred insurance policy acquisition costs 1.1 (.8) (1.7) (14.5) Net change in insurance policy benefit reserves 9.0 16.3 52.7 60.3 Changes in working capital, net of effects from acquisition or sale of businesses: Accounts receivable (16.6) 43.0 (108.3) 35.4 Inventories 18.7 7.0 2.2 (10.9) Underrecovery of fuel cost 28.2 (35.2) (33.1) (82.3) Accounts payable 31.0 .3 58.3 21.6 Income taxes payable (55.9) (36.7) (45.1) 23.3 Accrued other taxes (60.3) (55.2) (2.0) (2.3) Other (5.1) (16.0) 1.2 (13.5) Other operating activities (13.2) (20.8) (38.2) (19.2) - ------------------------------------------------------------------------------------------------------------------------------------ Cash provided by continuing operations 52.9 20.0 442.6 570.9 - ------------------------------------------------------------------------------------------------------------------------------------ Cash provided by (used for) discontinued operations - 5.0 - (8.9) - ------------------------------------------------------------------------------------------------------------------------------------ 52.9 25.0 442.6 562.0 - ------------------------------------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES: Property additions (including allowance for borrowed funds used during construction) (224.9) (72.0) (513.6) (264.0) Purchases of loans and securities, net (8.6) (45.3) (11.0) (70.4) Proceeds from sales of properties and businesses 15.7 54.1 24.3 61.1 Acquisition of businesses (9.5) (8.7) (32.7) (53.8) Acquisition of cogeneration facility and payment of contract termination costs - - (445.0) - Distributions from (investments in) joint ventures and partnerships, net (7.0) (4.8) (30.5) (9.4) Investing activities of discontinued operations - 21.3 - 56.5 Other investing activities (4.9) (3.1) (22.2) (27.6) - ------------------------------------------------------------------------------------------------------------------------------------ (239.2) (58.5) (1,030.7) (307.6) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES: Issuance of long-term debt 35.1 60.0 482.8 178.0 Repayment of long-term debt (.7) (.6) (34.9) (190.4) Increase(decrease) in commercial paper with long-term support - (10.0) 130.6 (15.3) Redemption of preferred stock - (25.5) - (106.4) Sale of common stock - - - 18.5 Equity contributions to discontinued operations - (23.7) - (23.7) Dividends paid on common stock (50.9) (50.0) (203.8) (199.5) Increase (decrease) in short-term debt 191.2 (24.9) 210.8 4.1 Financing activities of discontinued operations - 96.5 - 85.2 Other financing activities (.5) (.9) .5 (4.0) - ------------------------------------------------------------------------------------------------------------------------------------ 174.2 20.9 586.0 (253.5) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (12.1) (12.6) (2.1) .9 Beginning cash and equivalents 15.2 17.8 5.2 4.3 - ------------------------------------------------------------------------------------------------------------------------------------ ENDING CASH AND EQUIVALENTS $ 3.1 $ 5.2 $ 3.1 $ 5.2 - ------------------------------------------------------------------------------------------------------------------------------------ Florida Progress Corporation Selected Financial Information (Unaudited) Page 9 Three Months Ended Percent Twelve Months Ended Percent December 31 Positive December 31 Positive 1997 1996 (Negative) 1997 1996 (Negative) ---------- ---------- ------------- ---------- ---------- ------------ Earnings (Loss) Per Share: Florida Power Corporation $.44 $.44 - $2.48 $2.40 3.3 ---------- ---------- ---------- ---------- Electric Fuels Corporation .11 .07 57.1 .33 .28 17.9 Mid-Continent Life Insurance Co. - - - - .02 - Corporate and other (.10) (.02) (400.0) (.19) (.09) (111.1) ---------- ---------- ---------- ---------- Diversified Continuing before non-recurring .01 .05 (80.0) .14 .21 (33.3) ---------- ---------- ---------- ---------- Continuing Ops before non-recurring .45 .49 (8.2) 2.62 2.61 .4 Impact of nuclear outage (.02) - - (1.10) - - Provision for loss on coal properties - (.26) - - (.26) - Gain on sale of business - .24 - - .24 - Loss related to life insurance subsidiary (.96) - - (.96) - ----------- ---------- ---------- ---------- Total Continuing Operations (.53) .47 (212.8) .56 2.59 (78.4) Discontinued Operations - (.01) - - (.27) - ========== ========== ========== ========== ($.53) $.46 (215.2) $.56 $2.32 (75.9) ========== ========== ========== ========== Avg. shares outstanding (millions) 97.1 97.0 .1 97.1 96.8 .3 Dividends per share $.525 $.515 1.9 $2.10 $2.06 1.9 Book value per share: Florida Power Corporation $18.21 $18.82 (3.2) Consolidated $18.30 $19.84 (7.8) December 31 December 31 December 31 1997 1996 1997 1996 Amount Percent Amount Percent ---------- ---------- ----------------------------------------- Equity investments (percent): Capitalization (in millions): Florida Power Corporation 90 88 Common stock $1,776.0 40.2 $1,924.2 51.0 Electric Fuels Corporation 10 8 Preferred stock 33.5 .8 33.5 .9 Mid-Continent Life Insurance Co. - 4 Long-term debt 2,377.8 53.8 1,776.9 47.1 ---------- ---------- Short-term debt 230.0 5.2 39.0 1.0 Total 100 100 -------------------------------------------------------------- ========== ========== Total $4,417.3 100.0 $3,773.6 100.0 ============================================================== Note: 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 10 (In millions, except billing degree days) Three Months Ended Twelve Months Ended December 31 Percent December 31 Percent 1997 1996 Change 1997 1996 Change ----------- ------------ ------------- ------------ ----------- ----------- Revenues: Residential $321.0 $298.4 7.6 $1,315.0 $1,304.3 .8 Commercial 142.1 135.1 5.2 568.4 537.3 5.8 Industrial 49.9 52.2 (4.4) 207.9 206.8 .5 Other retail sales 34.6 33.8 2.4 133.4 125.9 6.0 ----------- ------------ ------------ ----------- 547.6 519.5 5.4 2,224.7 2,174.3 2.3 Sales for resale 45.6 33.3 36.9 150.7 159.9 (5.8) ----------- ------------ ------------ ----------- 593.2 552.8 7.3 2,375.4 2,334.2 1.8 Other electric revenues 0.6 2.8 (78.6) 76.3 53.2 43.4 Deferred fuel (3.3) 7.3 - (3.3) 6.2 - ----------- ------------ ------------ ----------- Total $590.5 $562.9 4.9 $2,448.4 $2,393.6 2.3 ----------- ------------ ------------ ----------- Kilowatt-hour sales billed: Residential 3,618.4 3,338.6 8.4 15,079.8 15,481.4 (2.6) Commercial 2,342.3 2,186.7 7.1 9,257.3 8,848.0 4.6 Industrial 1,005.3 1,028.5 (2.3) 4,187.8 4,223.7 (.8) Other retail sales 608.4 589.9 3.1 2,325.4 2,231.7 4.2 ----------- ------------ ------------ ----------- 7,574.4 7,143.7 6.0 30,850.3 30,784.8 .2 Sales for resale 900.2 622.0 44.7 2,439.6 2,707.7 (9.9) ----------- ------------ ------------ ----------- Total electric sales 8,474.6 7,765.7 9.1 33,289.9 33,492.5 (.6) ----------- ------------ ------------ ----------- System Requirements (KWH) 7,933 7,678 3.3 34,605 34,715 (.3) KWH Sales (Billed & Unbilled): Retail 7,124 6,881 3.5 30,865 30,613 .8 Wholesale 677 457 48.1 2,432 2,656 (8.4) Billing Degree Days: Cooling 719 611 17.7 3,434 3,682 (6.7) Heating 134 98 36.7 443 859 (48.4) Note: Revenues include amounts resulting from fuel, purchased power, and energy conservation clauses; which are designed to permit full recovery of these costs. 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 and wholesale 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 did not impact earnings with respect to residential revenues.