UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549



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FORM 10-Q



|    |  |                                                                                        
|--- |  | ---------------------------------------------------------------------------------------
|[X] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2000

OR



|     |  |                                                                                         
|---- |  | ----------------------------------------------------------------------------------------
|[  ] |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _______ to _______

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|------------------- |  | ----------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------
|Commission File No. |  | Exact name of Registrant as specified in itscharter, state of incorporation, address ofprincipal executive offices, telephone |  | I.R.S. EmployerIdentificationNumber
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|1-8349              |  | FLORIDA PROGRESS CORPORATION
A Florida Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 824-6400  |  | 59-2147112                         
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|1-3274              |  | FLORIDA POWER CORPORATION
A Florida Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 820-5151     |  | 59-0247770                         

Indicate by check mark whether each registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

Indicate the number of shares outstanding of each of the registrants
classes of common stock, as of the latest practicable date.

|                                     |  |                                 |  |                                                             
|------------------------------------ |  | ------------------------------- |  | ------------------------------------------------------------
|                                     |  |                                 |  | Shares Outstanding                                          
|Registrant                           |  | Description of Class            |  | at June 30, 2000                                            
|                                    
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|    Florida Progress Corporation |  | Common Stock, without par value |  | 98,615,927                                                  
|                                    
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|Florida Power Corporation            |  | Common Stock, without par value |  | 100 (all of which
were held by Florida
Progress
Corporation)

This combined Form 10-Q represents separate filings by Florida Progress
Corporation and Florida Power Corporation. Florida Power makes no
representations as to the information relating to Florida Progress diversified
operations.





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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FLORIDA PROGRESS CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS

FLORIDA PROGRESS CORPORATION
Consolidated Statements of Income
(Dollars in millions, except per share amounts)

|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |         |       | 
|------------------------------------------ | ------------------------------------------------------------------------------ | ----------------------------- | ------- | ------------------ | ----- | ---------------- | ----- | ----- | ----- | ---- | ------- | ------- | ----- | - | ------- | ------- | ----- | 
|                                           |                                                                                |                               |         | Three Months Ended |       | Six Months Ended
|                                           |                                                                                |                               |         | June 30,           |       | June 30,        
|                                           |                                                                                |                               |         |                    |       |                 
|                                           |                                                                                |                               |         | 2000               |       | 1999             |       | 2000  |       | 1999
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |     
|                                           |                                                                                |                               |         | (Unaudited)        |       | (Unaudited)     
|REVENUES:                                 
|                                          
|                                          
|                                          
|                                          
|                                           | Electric utility                                                               |                               | $       | 701.4              |       |                  | $     | 671.7 |       |      | $       | 1,323.3 |       |   | $       | 1,242.4 |      
|                                          
|                                          
|                                          
|                                          
|                                           | Diversified                                                                    |                               |         | 392.1              |       |                  |       | 304.6 |       |      |         | 720.3   |       |   |         | 554.3   |      
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|                                           |                                                                                |                               | 1,093.5 |                    |       |                  | 976.3 |       |       |      | 2,043.6 |         |       |   | 1,796.7 |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|EXPENSES:                                 
|                                          
|                                          
|                                          
|                                          
|                                           | Electric utility:                                                             
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Fuel                          |         |                    | 154.2 |                  |       |       | 143.5 |      |         |         | 288.2 |   |         |         | 257.2 | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Purchased power               |         |                    | 120.3 |                  |       |       | 108.4 |      |         |         | 223.4 |   |         |         | 198.7 | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Energy conservation costs     |         |                    | 15.9  |                  |       |       | 19.4  |      |         |         | 30.0  |   |         |         | 36.5  | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Operation and maintenance     |         |                    | 109.5 |                  |       |       | 120.8 |      |         |         | 209.5 |   |         |         | 217.9 | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Depreciation and amortization |         |                    | 92.1  |                  |       |       | 93.2  |      |         |         | 177.8 |   |         |         | 174.0 | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Taxes other than income taxes |         |                    | 52.8  |                  |       |       | 51.1  |      |         |         | 105.9 |   |         |         | 103.0 | 
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|                                           |                                                                                |                               | 544.8   |                    |       |                  | 536.4 |       |       |      | 1,034.8 |         |       |   | 987.3   |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|                                           | Diversified:                                                                  
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Cost of sales                 |         |                    | 377.4 |                  |       |       | 269.7 |      |         |         | 681.6 |   |         |         | 494.8 | 
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Other                         |         |                    | 21.1  |                  |       |       | 15.8  |      |         |         | 41.9  |   |         |         | 30.4  | 
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|                                           |                                                                                |                               | 398.5   |                    |       |                  | 285.5 |       |       |      | 723.5   |         |       |   | 525.2   |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|INCOME FROM OPERATIONS                     |                                                                                |                               | 150.2   |                    |       |                  | 154.4 |       |       |      | 285.3   |         |       |   | 284.2   |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|INTEREST EXPENSE AND OTHER:               
|                                          
|                                          
|                                          
|                                          
|                                           | Interest expense                                                               |                               |         | 48.2               |       |                  |       | 43.9  |       |      |         | 93.4    |       |   |         | 88.9    |      
|                                          
|                                          
|                                          
|                                          
|                                           | Allowance for funds used during construction                                   |                               |         | (1.0               | )     |                  |       | (1.2  | )     |      |         | (1.9    | )     |   |         | (6.3    | )    
|                                          
|                                          
|                                          
|                                          
|                                           | Distributions on company obligated mandatorily
redeemable preferred securities |                               |         | 5.4                |       |                  |       | 4.6   |       |      |         | 10.7    |       |   |         | 4.6     |      
|                                          
|                                          
|                                          
|                                          
|                                           | Other expense / (income), net                                                  |                               |         | (3.2               | )     |                  |       | 1.0   |       |      |         | (3.6    | )     |   |         | (3.3    | )    
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|                                           |                                                                                |                               | 49.4    |                    |       |                  | 48.3  |       |       |      | 98.6    |         |       |   | 83.9    |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|INCOME BEFORE INCOME TAXES                 |                                                                                |                               | 100.8   |                    |       |                  | 106.1 |       |       |      | 186.7   |         |       |   | 200.3   |        
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                | Income taxes                  |         |                    | (9.1  | )                |       |       | 29.5  |      |         |         | .3    |   |         |         | 56.1  | 
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|NET INCOME                                 |                                                                                | $                             | 109.9   |                    |       | $                | 76.6  |       |       | $    | 186.4   |         |       | $ | 144.2   |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|AVERAGE SHARES OF COMMON STOCK OUTSTANDING |                                                                                |                               | 98.6    |                    |       |                  | 98.0  |       |       |      | 98.6    |         |       |   | 97.8    |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|EARNINGS PER AVERAGE COMMON SHARE         
|                                          
|                                          
|                                          
|                                          
|                                           | (Basic and Diluted):                                                           |                               | $       | 1.11               |       |                  | $     | .78   |       |      | $       | 1.89    |       |   | $       | 1.48    |      
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        
|DIVIDENDS PER COMMON SHARE                 |                                                                                | $                             | .555    |                    |       | $                | .545  |       |       | $    | 1.11    |         |       | $ | 1.09    |        
|                                           |                                                                                |                               |         |                    |       |                  |       |       |       |      |         |         |       |   |         |        

The accompanying notes are an integral part of these consolidated financial statements.

2



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FLORIDA PROGRESS CORPORATION
Consolidated Balance Sheets
(Dollars in millions)

|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |              |       |         |       | 
|---------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------------------------- | -------------------------- | --------------------------------------------- | ----- | ----------- | ------- | ------------ | ----- | ------- | ----- | 
|                                   |                                                                                            |                                                     |                            |                                               |       | June 30,    |         | December 31,
|                                   |                                                                                            |                                                     |                            |                                               |       | 2000        |         | 1999        
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     |                            |                                               |       | (Unaudited)
|ASSETS                            
|                                  
|                                  
|                                  
|                                  
|PROPERTY, PLANT AND EQUIPMENT:    
|                                  
|                                  
|                                  
|                                  
|                                   | Electric utility plant in service and held for future use                                  |                                                     | $                          | 6,835.0                                       |       |             | $       | 6,784.8      |      
|                                  
|                                  
|                                  
|                                  
|                                   | Less  Accumulated depreciation                                                            |                                                     |                            | 3,038.1                                       |       |             |         | 2,923.8      |      
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            |                                                     |                            | Accumulated decommissioning for nuclear plant |       |             | 305.2   |              |       |         | 285.0 | 
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            |                                                     |                            | Accumulated dismantlement for fossil plants   |       |             | 133.5   |              |       |         | 132.5 | 
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     | 3,358.2                    |                                               |       |             | 3,443.5 |             
|                                  
|                                  
|                                  
|                                  
|                                   | Construction work in progress                                                              |                                                     |                            | 172.2                                         |       |             |         | 139.7        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Nuclear fuel, net of amortization of $412.3
in 2000 and $401.0 in 1999                     |                                                     |                            | 51.0                                          |       |             |         | 68.7         |      
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     | Net electric utility plant |                                               |       | 3,581.4     |         |              |       | 3,651.9 |      
|                                  
|                                  
|                                  
|                                  
|                                   | Other property, at cost, net of depreciation of $299.5
in 2000 and $275.0 in 1999          |                                                     |                            | 699.2                                         |       |             |         | 703.4        |      
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     | 4,280.6                    |                                               |       |             | 4,355.3 |             
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|CURRENT ASSETS:                   
|                                  
|                                  
|                                  
|                                  
|                                   | Cash and equivalents                                                                       |                                                     |                            | 9.4                                           |       |             |         | 9.6          |      
|                                  
|                                  
|                                  
|                                  
|                                   | Accounts receivable, less allowance for doubtful accounts of
$6.0 in 2000 and $5.8 in 1999 |                                                     |                            | 494.0                                         |       |             |         | 420.6        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Inventories, primarily at average cost:                                                   
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            | Fuel                                                |                            |                                               | 88.7  |             |         |              | 76.4  |        
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            | Utility materials and supplies                      |                            |                                               | 92.0  |             |         |              | 90.8  |        
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            | Diversified operations                              |                            |                                               | 281.6 |             |         |              | 209.3 |        
|                                  
|                                  
|                                  
|                                  
|                                   | Underrecovered utility fuel costs                                                          |                                                     |                            | 27.1                                          |       |             |         |             |      
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                      |                                                     |                            | 28.0                                          |       |             |         | 41.3         |      
|                                  
|                                  
|                                  
|                                  
|                                   | Prepayments and other                                                                      |                                                     |                            | 144.8                                         |       |             |         | 113.7        |      
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     | 1,165.6                    |                                               |       |             | 961.7   |             
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|DEFERRED CHARGES AND OTHER ASSETS:
|                                  
|                                  
|                                  
|                                  
|                                   | Costs deferred pursuant to regulation:                                                    
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            | Deferred purchased power contract termination costs |                            |                                               | 286.1 |             |         |              | 297.8 |        
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                            | Other                                               |                            |                                               | 81.6  |             |         |              | 94.0  |        
|                                  
|                                  
|                                  
|                                  
|                                   | Investments in nuclear plant decommissioning fund                                          |                                                     |                            | 385.1                                         |       |             |         | 377.2        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Goodwill                                                                                   |                                                     |                            | 169.1                                         |       |             |         | 171.1        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Joint ventures and partnerships                                                            |                                                     |                            | 65.1                                          |       |             |         | 66.2         |      
|                                  
|                                  
|                                  
|                                  
|                                   | Other                                                                                      |                                                     |                            | 213.2                                         |       |             |         | 204.9        |      
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            |                                                     | 1,200.2                    |                                               |       |             | 1,211.2 |             
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             
|                                   |                                                                                            | $                                                   | 6,646.4                    |                                               |       | $           | 6,528.2 |             
|                                   |                                                                                            |                                                     |                            |                                               |       |             |         |             

The accompanying notes are an integral part of these consolidated financial statements.

3



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FLORIDA PROGRESS CORPORATION
Consolidated Balance Sheets
(Dollars in millions)

|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |         |  
|--------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------- | ------- | ------------ | - | ------- | ------- | -
|                                        |                                                                                                                                                                                                               |   | June 30,    |         | December 31,
|                                        |                                                                                                                                                                                                               |   | 2000        |         | 1999        
|                                        |                                                                                                                                                                                                               |   |             |         |             
|                                        |                                                                                                                                                                                                               |   | (Unaudited)
|CAPITAL AND LIABILITIES                
|                                       
|                                       
|                                       
|                                       
|COMMON STOCK EQUITY:                   
|                                       
|                                       
|                                       
|                                       
|                                        | Common stock                                                                                                                                                                                                  |   | $           | 1,274.2 |              |   | $       | 1,267.3 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Retained earnings                                                                                                                                                                                             |   |             | 818.8   |              |   |         | 741.8   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Other comprehensive income                                                                                                                                                                                    |   |             | (.5     | )            |   |         | (.4     | )
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|                                        |                                                                                                                                                                                                               |   | 2,092.5     |         |              |   | 2,008.7 |        
|                                       
|                                       
|                                       
|                                       
|PREFERRED SECURITIES:                  
|                                       
|                                       
|                                       
|                                       
|                                        | Cumulative preferred stock of Florida Power without sinking funds                                                                                                                                             |   |             | 33.5    |              |   |         | 33.5    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Company-obligated mandatorily redeemable quarterly income
preferred     securities (QUIPS) of a subsidiary trust holding solely
Florida Progress     guaranteed junior subordinated deferrable
interest notes |   |             | 300.0   |              |   |         | 300.0   |  
|                                       
|                                       
|                                       
|                                       
|LONG-TERM DEBT                          |                                                                                                                                                                                                               |   | 2,132.0     |         |              |   | 2,154.1 |        
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|TOTAL CAPITAL                           |                                                                                                                                                                                                               |   | 4,558.0     |         |              |   | 4,496.3 |        
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|CURRENT LIABILITIES:                   
|                                       
|                                       
|                                       
|                                       
|                                        | Accounts payable                                                                                                                                                                                              |   |             | 291.1   |              |   |         | 309.0   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Customers deposits                                                                                                                                                                                           |   |             | 107.3   |              |   |         | 105.6   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Taxes payable                                                                                                                                                                                                 |   |             | 56.9    |              |   |         | 10.3    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Accrued interest                                                                                                                                                                                              |   |             | 77.1    |              |   |         | 77.4    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Overrecovered utility fuel costs                                                                                                                                                                              |   |             |        |              |   |         | 31.6    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Other                                                                                                                                                                                                         |   |             | 79.0    |              |   |         | 112.4   |  
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|                                        |                                                                                                                                                                                                               |   | 611.4       |         |              |   | 646.3   |        
|                                       
|                                       
|                                       
|                                       
|                                        | Notes payable                                                                                                                                                                                                 |   |             | 226.0   |              |   |         | 153.1   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Current portion of long-term debt                                                                                                                                                                             |   |             | 188.2   |              |   |         | 163.2   |  
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|                                        |                                                                                                                                                                                                               |   | 1,025.6     |         |              |   | 962.6   |        
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|DEFERRED CREDITS AND OTHER LIABILITIES:
|                                       
|                                       
|                                       
|                                       
|                                        | Deferred income taxes                                                                                                                                                                                         |   |             | 554.7   |              |   |         | 565.3   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Unamortized investment tax credits                                                                                                                                                                            |   |             | 66.1    |              |   |         | 70.0    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Other postretirement benefit costs                                                                                                                                                                            |   |             | 126.3   |              |   |         | 123.1   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Other                                                                                                                                                                                                         |   |             | 315.7   |              |   |         | 310.9   |  
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|                                        |                                                                                                                                                                                                               |   | 1,062.8     |         |              |   | 1,069.3 |        
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        
|                                        |                                                                                                                                                                                                               | $ | 6,646.4     |         |              | $ | 6,528.2 |        
|                                        |                                                                                                                                                                                                               |   |             |         |              |   |         |        

The accompanying notes are an integral part of these consolidated financial statements.

4



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FLORIDA PROGRESS CORPORATION
Consolidated Statements of Cash Flows
(Dollars in millions)

|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |        |       |       |  
|------------------------------------------------- | ------------------------------------------------------------------------------------ | ----------------------------------------------------- | ----------------------------------------------- | ------ | ---------------- | ----- | ------ | ------ | ----- | ----- | -
|                                                  |                                                                                      |                                                       |                                                 |        | Six Months Ended
|                                                  |                                                                                      |                                                       |                                                 |        | June 30,        
|                                                  |                                                                                      |                                                       |                                                 |        |                 
|                                                  |                                                                                      |                                                       |                                                 |        | 2000             |       | 1999  
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |       
|                                                  |                                                                                      |                                                       |                                                 |        | (Unaudited)     
|OPERATING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Net income                                                                           |                                                       | $                                               | 186.4  |                  |       | $      | 144.2  |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Adjustments for noncash items:                                                      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      | Depreciation and amortization                         |                                                 |        | 226.5            |       |        |        | 216.2 |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      | Deferred income taxes and investment tax credits, net |                                                 |        | (1.2             | )     |        |        | (22.3 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Changes in working capital, net of effects from sale or acquisition of
businesses:  
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Accounts receivable                             |        |                  | (72.7 | )      |        |       | (13.7 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Inventories                                     |        |                  | (50.9 | )      |        |       | (89.2 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Overrecovered/underrecovered utility fuel costs |        |                  | (58.7 | )      |        |       | (.5   | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Accounts payable                                |        |                  | (17.7 | )      |        |       | (79.1 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Taxes payable                                   |        |                  | 36.8  |        |        |       | 107.0 |  
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      |                                                       | Prepayments and other                           |        |                  | (59.1 | )      |        |       | (24.2 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Other operating activities                                                           |                                                       |                                                 | 27.2   |                  |       |        | (.5    | )    
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|                                                  |                                                                                      |                                                       | 216.6                                           |        |                  |       | 237.9  |       
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|INVESTING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Property additions (including allowance for
borrowed funds used during construction) |                                                       |                                                 | (155.8 | )                |       |        | (279.9 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Acquisition of businesses                                                            |                                                       |                                                 | (33.9  | )                |       |        | (9.5   | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Other investing activities                                                           |                                                       |                                                 | (7.7   | )                |       |        | 40.7   |      
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|                                                  |                                                                                      |                                                       | (197.4                                          | )      |                  |       | (248.7 | )     
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|FINANCING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Issuance of long-term debt                                                           |                                                       |                                                 |       |                  |       |        | 50.0   |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Repayment of long-term debt                                                          |                                                       |                                                 | (1.2   | )                |       |        | (52.8  | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Increase in commercial paper with long-term support                                  |                                                       |                                                 | 16.5   |                  |       |        | (16.7  | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Issuance of company obligated mandatorily redeemable preferred securities            |                                                       |                                                 |       |                  |       |        | 300.0  |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Sale of common stock                                                                 |                                                       |                                                 |       |                  |       |        | 32.4   |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Dividends paid on common stock                                                       |                                                       |                                                 | (109.4 | )                |       |        | (106.7 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Increase in short-term debt                                                          |                                                       |                                                 | 72.9   |                  |       |        | (189.8 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Other financing activities                                                           |                                                       |                                                 | 1.8    |                  |       |        | (1.0   | )    
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|                                                  |                                                                                      |                                                       | (19.4                                           | )      |                  |       | 15.4   |       
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS   |                                                                                      |                                                       | (.2                                             | )      |                  |       | 4.6    |       
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Beginning cash and equivalents                                                       |                                                       |                                                 | 9.6    |                  |       |        | 2.5    |      
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|ENDING CASH AND EQUIVALENTS                       |                                                                                      | $                                                     | 9.4                                             |        |                  | $     | 7.1    |       
|                                                  |                                                                                      |                                                       |                                                 |        |                  |       |        |       
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Cash paid during the period for:                                                    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      | Interest (net of amount capitalized)                  |                                                 | $      | 102.1            |       |        | $      | 86.2  |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                                                      | Income taxes (net of refunds)                         |                                                 | $      | 63.1             |       |        | $      | 28.8  |      

The accompanying notes are an integral part of these consolidated financial statements.

5



---



FLORIDA PROGRESS CORPORATION
Consolidated Statements of Common Equity and Comprehensive Income (Unaudited)
For the periods ended June 30, 2000 and 1999
(Dollars in millions, except per share amounts)

|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |     |  
|--------------------------------------- | -------------------- | - | ------- | ----- | ----- | - | -------- | - | -------- | - | ------------- | ----- |  | - | ----------- | --- | -
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   | Accumulated
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   | Other      
|                                        |                      |   |         |       |       |   | Common   |   | Retained |   | Comprehensive
|                                        |                      |   | Total   |       | Stock |   | Earnings |   | Income  
|                                        |                      |   |         |       |       |   |          |   |         
|Balance, December 31, 1998              |                      | $ | 1,862.0 |       |       | $ | 1,221.1  |   |          | $ | 640.9         |       |  | $ |            |    
|                                       
|                                       
|                                       
|                                       
|Net income                              |                      |   | 144.2   |       |       |   |          |   |          |   | 144.2         |      
|                                       
|                                       
|                                       
|                                       
|Common stock issued                     |                      |   | 35.3    |       |       |   | 35.3     |  
|                                       
|                                       
|                                       
|                                       
|Cash dividends on common stock          |                      |   | (106.7  | )     |       |   |          |   |          |   | (106.7        | )    
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |    
|Balance, June 30, 1999                  |                      |   | 1,934.8 |       |       |   | 1,256.4  |   |          |   | 678.4         |       |  |   |            |    
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |    
|Balance, December 31, 1999              |                      |   | 2,008.7 |       |       |   | 1,267.3  |   |          |   | 741.8         |       |  |   | (.4         | )  
|                                       
|                                       
|                                       
|                                       
|Net income                              |                      |   | 186.4   |       |       |   |          |   |          |   | 186.4         |      
|                                       
|                                       
|                                       
|                                       
|Foreign currency translation adjustment |                      |   | (.1     | )     |       |   |          |   |          |   |               |       |  |   | (.1         | )  
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |    
|                                        | Comprehensive income |   |         | 186.3 |       |   |          |  |          |   |               | 186.4 |  |   |             | (.1 | )
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |     |  
|                                       
|                                       
|                                       
|                                       
|Common stock issued                     |                      |   | 6.9     |       |       |   | 6.9      |  
|                                       
|                                       
|                                       
|                                       
|Cash dividends on common stock          |                      |   | (109.4  | )     |       |   |          |   |          |   | (109.4        | )    
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |    
|Balance, June 30, 2000                  |                      | $ | 2,092.5 |       |       | $ | 1,274.2  |   |          | $ | 818.8         |       |  | $ | (.5         | )  
|                                        |                      |   |         |       |       |   |          |   |          |   |               |       |  |   |             |    

The accompanying notes are an integral part of these consolidated financial statements.

6



---



FLORIDA POWER CORPORATION
Statements of Income
(Dollars in millions)

|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |   |       |  
|--------------------------------------------- | ------------- | ----------------------------------------------------- | ----- | ------------------ | ----- | ---------------- | ----- | ---- | ----- | ---- | ------- | - | ----- | - | ------- | - | ----- | -
|                                              |               |                                                       |       | Three Months Ended |       | Six Months Ended
|                                              |               |                                                       |       | June 30,           |       | June 30,        
|                                              |               |                                                       |       |                    |       |                 
|                                              |               |                                                       |       | 2000               |       | 1999             |       | 2000 |       | 1999
|                                              |               |                                                       |       |                    |       |                  |       |      |       |     
|                                              |               |                                                       |       | (Unaudited)        |       | (Unaudited)     
|OPERATING REVENUES:                          
|                                             
|                                             
|                                             
|                                             
|                                              |               | Residential                                           |       | $                  | 347.1 |                  |       | $    | 326.9 |      |         | $ | 666.3 |   |         | $ | 625.6 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Commercial                                            |       |                    | 165.3 |                  |       |      | 153.3 |      |         |   | 301.2 |   |         |   | 284.7 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Industrial                                            |       |                    | 53.5  |                  |       |      | 51.7  |      |         |   | 104.5 |   |         |   | 101.0 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Sales for resale                                      |       |                    | 54.1  |                  |       |      | 43.8  |      |         |   | 114.0 |   |         |   | 92.6  |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Other                                                 |       |                    | 81.4  |                  |       |      | 96.0  |      |         |   | 137.3 |   |         |   | 138.5 |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 701.4 |                    |       |                  | 671.7 |      |       |      | 1,323.3 |   |       |   | 1,242.4 |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|OPERATING EXPENSES:                          
|                                             
|                                             
|                                             
|                                             
|                                              | Operation:   
|                                             
|                                             
|                                             
|                                             
|                                              |               | Fuel                                                  |       |                    | 154.2 |                  |       |      | 143.5 |      |         |   | 288.2 |   |         |   | 257.2 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Purchased power                                       |       |                    | 120.3 |                  |       |      | 108.4 |      |         |   | 223.4 |   |         |   | 198.7 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Energy conservation costs                             |       |                    | 15.9  |                  |       |      | 19.4  |      |         |   | 30.0  |   |         |   | 36.5  |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Operation and maintenance                             |       |                    | 109.5 |                  |       |      | 120.8 |      |         |   | 209.5 |   |         |   | 217.9 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Depreciation and amortization                         |       |                    | 92.1  |                  |       |      | 93.2  |      |         |   | 177.8 |   |         |   | 174.0 |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Taxes other than income taxes                         |       |                    | 52.8  |                  |       |      | 51.1  |      |         |   | 105.9 |   |         |   | 103.0 |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 544.8 |                    |       |                  | 536.4 |      |       |      | 1,034.8 |   |       |   | 987.3   |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              | Income taxes:
|                                             
|                                             
|                                             
|                                             
|                                              |               | Currently payable                                     |       |                    | 59.2  |                  |       |      | 54.8  |      |         |   | 97.4  |   |         |   | 95.5  |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Deferred, net                                         |       |                    | (11.3 | )                |       |      | (14.7 | )    |         |   | (11.0 | ) |         |   | (20.7 | )
|                                             
|                                             
|                                             
|                                             
|                                              |               | Investment tax credits, net                           |       |                    | (2.0  | )                |       |      | (1.9  | )    |         |   | (3.9  | ) |         |   | (3.9  | )
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 45.9  |                    |       |                  | 38.2  |      |       |      | 82.5    |   |       |   | 70.9    |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 590.7 |                    |       |                  | 574.6 |      |       |      | 1,117.3 |   |       |   | 1,058.2 |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|INCOME FROM OPERATIONS                        |               |                                                       | 110.7 |                    |       |                  | 97.1  |      |       |      | 206.0   |   |       |   | 184.2   |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|OTHER INCOME AND DEDUCTIONS:                 
|                                             
|                                             
|                                             
|                                             
|                                              |               | Allowance for equity funds used during construction   |       |                    | .5    |                  |       |      | .5    |      |         |   | 1.0   |   |         |   | 2.8   |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Other income (expense), net                           |       |                    | .7    |                  |       |      | (1.3  | )    |         |   | .5    |   |         |   | .7    |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 1.2   |                    |       |                  | (.8   | )    |       |      | 1.5     |   |       |   | 3.5     |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|INTEREST CHARGES                             
|                                             
|                                             
|                                             
|                                             
|                                              |               | Interest on long-term debt                            |       |                    | 26.1  |                  |       |      | 26.7  |      |         |   | 52.0  |   |         |   | 53.6  |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Other interest expense                                |       |                    | 6.4   |                  |       |      | 4.4   |      |         |   | 12.7  |   |         |   | 8.9   |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 32.5  |                    |       |                  | 31.1  |      |       |      | 64.7    |   |       |   | 62.5    |  
|                                             
|                                             
|                                             
|                                             
|                                              |               | Allowance for borrowed funds used during construction |       |                    | (.5   | )                |       |      | (.7   | )    |         |   | (.9   | ) |         |   | (3.5  | )
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|                                              |               |                                                       | 32.0  |                    |       |                  | 30.4  |      |       |      | 63.8    |   |       |   | 59.0    |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|NET INCOME                                    |               |                                                       | 79.9  |                    |       |                  | 65.9  |      |       |      | 143.7   |   |       |   | 128.7   |  
|                                             
|                                             
|                                             
|                                             
|DIVIDENDS ON PREFERRED STOCK                  |               |                                                       | .4    |                    |       |                  | .4    |      |       |      | .8      |   |       |   | .8      |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  
|NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK |               | $                                                     | 79.5  |                    |       | $                | 65.5  |      |       | $    | 142.9   |   |       | $ | 127.9   |  
|                                              |               |                                                       |       |                    |       |                  |       |      |       |      |         |   |       |   |         |  

The accompanying notes are an integral part of these financial statements.

7



---



FLORIDA POWER CORPORATION
Balance Sheets
(Dollars in millions)

|                                   |                                                                                               |                                                     |                                               |         |             |       |              |         |       |       | 
|---------------------------------- | --------------------------------------------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------- | ------- | ----------- | ----- | ------------ | ------- | ----- | ----- | 
|                                   |                                                                                               |                                                     |                                               |         | June 30,    |       | December 31,
|                                   |                                                                                               |                                                     |                                               |         | 2000        |       | 1999        
|                                   |                                                                                               |                                                     |                                               |         |             |       |             
|                                   |                                                                                               |                                                     |                                               |         | (Unaudited)
|ASSETS                            
|                                  
|                                  
|                                  
|                                  
|PROPERTY, PLANT AND EQUIPMENT:    
|                                  
|                                  
|                                  
|                                  
|                                   | Electric utility plant in service and held for future use                                     |                                                     | $                                             | 6,835.0 |             |       | $            | 6,784.8 |      
|                                  
|                                  
|                                  
|                                  
|                                   | Less  Accumulated depreciation                                                               |                                                     |                                               | 3,038.1 |             |       |              | 2,923.8 |      
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               |                                                     | Accumulated decommissioning for nuclear plant |         |             | 305.2 |              |         |       | 285.0 | 
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               |                                                     | Accumulated dismantlement for fossil plants   |         |             | 133.5 |              |         |       | 132.5 | 
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               |                                                     | 3,358.2                                       |         |             |       | 3,443.5      |        
|                                  
|                                  
|                                  
|                                  
|                                   | Construction work in progress                                                                 |                                                     |                                               | 172.2   |             |       |              | 139.7   |      
|                                  
|                                  
|                                  
|                                  
|                                   | Nuclear fuel, net of amortization of $412.3
in 2000 and $401.0 in 1999                        |                                                     |                                               | 51.0    |             |       |              | 68.7    |      
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               |                                                     | 3,581.4                                       |         |             |       | 3,651.9      |        
|                                  
|                                  
|                                  
|                                  
|                                   | Other property, net                                                                           |                                                     |                                               | 9.5     |             |       |              | 10.0    |      
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               |                                                     | 3,590.9                                       |         |             |       | 3,661.9      |        
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|CURRENT ASSETS:                   
|                                  
|                                  
|                                  
|                                  
|                                   | Cash and equivalents                                                                          |                                                     |                                               | 4.8     |             |       |              |        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Accounts receivable, less allowance for doubtful accounts of $4.5
   in 2000 and $4.0 in 1999 |                                                     |                                               | 247.5   |             |       |              | 210.8   |      
|                                  
|                                  
|                                  
|                                  
|                                   | Inventories, primarily at average cost:                                                      
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               | Fuel                                                |                                               |         | 88.7        |       |              |         | 76.4  |      
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               | Materials and supplies                              |                                               |         | 92.0        |       |              |         | 90.8  |      
|                                  
|                                  
|                                  
|                                  
|                                   | Underrecovered utility fuel costs                                                             |                                                     |                                               | 27.1    |             |       |              |        |      
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                         |                                                     |                                               | 28.0    |             |       |              | 41.4    |      
|                                  
|                                  
|                                  
|                                  
|                                   | Prepayments and other                                                                         |                                                     |                                               | 108.5   |             |       |              | 101.3   |      
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               |                                                     | 596.6                                         |         |             |       | 520.7        |        
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|DEFERRED CHARGES AND OTHER ASSETS:
|                                  
|                                  
|                                  
|                                  
|                                   | Costs deferred pursuant to regulation:                                                       
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               | Deferred purchased power contract termination costs |                                               |         | 286.1       |       |              |         | 297.8 |      
|                                  
|                                  
|                                  
|                                  
|                                   |                                                                                               | Other                                               |                                               |         | 81.6        |       |              |         | 94.0  |      
|                                  
|                                  
|                                  
|                                  
|                                   | Investments in nuclear plant decommissioning fund                                             |                                                     |                                               | 385.1   |             |       |              | 377.2   |      
|                                  
|                                  
|                                  
|                                  
|                                   | Other                                                                                         |                                                     |                                               | 56.8    |             |       |              | 50.9    |      
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               |                                                     | 809.6                                         |         |             |       | 819.9        |        
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        
|                                   |                                                                                               | $                                                   | 4,997.1                                       |         |             | $     | 5,002.5      |        
|                                   |                                                                                               |                                                     |                                               |         |             |       |              |        

The accompanying notes are an integral part of these financial statements.

8



---



FLORIDA POWER CORPORATION
Balance Sheets
(Dollars in millions)

|                                        |                                          |   |             |         |              |   |         |         | 
|--------------------------------------- | ---------------------------------------- | - | ----------- | ------- | ------------ | - | ------- | ------- | 
|                                        |                                          |   | June 30,    |         | December 31,
|                                        |                                          |   | 2000        |         | 1999        
|                                        |                                          |   |             |         |             
|                                        |                                          |   | (Unaudited)
|CAPITALIZATION AND LIABILITIES         
|                                       
|                                       
|                                       
|                                       
|CAPITALIZATION:                        
|                                       
|                                       
|                                       
|                                       
|                                        | Common stock                             |   | $           | 1,004.4 |              |   | $       | 1,004.4 | 
|                                       
|                                       
|                                       
|                                       
|                                        | Retained earnings                        |   |             | 921.0   |              |   |         | 880.6   | 
|                                        |                                          |   |             |         |              |   |         |        
|                                        |                                          |   | 1,925.4     |         |              |   | 1,885.0 |        
|                                       
|                                       
|                                       
|                                       
|CUMULATIVE PREFERRED STOCK:            
|                                       
|                                       
|                                       
|                                       
|                                        | Without sinking funds                    |   |             | 33.5    |              |   |         | 33.5    | 
|                                       
|                                       
|                                       
|                                       
|LONG-TERM DEBT                          |                                          |   | 1,478.0     |         |              |   | 1,478.8 |        
|                                        |                                          |   |             |         |              |   |         |        
|TOTAL CAPITAL                           |                                          |   | 3,436.9     |         |              |   | 3,397.3 |        
|                                        |                                          |   |             |         |              |   |         |        
|CURRENT LIABILITIES:                   
|                                       
|                                       
|                                       
|                                       
|                                        | Accounts payable                         |   |             | 155.2   |              |   |         | 152.9   | 
|                                       
|                                       
|                                       
|                                       
|                                        | Accounts payable to associated companies |   |             | 22.1    |              |   |         | 23.1    | 
|                                       
|                                       
|                                       
|                                       
|                                        | Customers deposits                      |   |             | 107.3   |              |   |         | 105.6   | 
|                                       
|                                       
|                                       
|                                       
|                                        | Income taxes payable                     |   |             | 57.2    |              |   |         |        | 
|                                       
|                                       
|                                       
|                                       
|                                        | Accrued other taxes                      |   |             | 50.2    |              |   |         | 5.8     | 
|                                       
|                                       
|                                       
|                                       
|                                        | Accrued interest                         |   |             | 57.9    |              |   |         | 59.6    | 
|                                       
|                                       
|                                       
|                                       
|                                        | Overrecovered utility fuel costs         |   |             |        |              |   |         | 31.6    | 
|                                       
|                                       
|                                       
|                                       
|                                        | Other                                    |   |             | 39.5    |              |   |         | 79.3    | 
|                                        |                                          |   |             |         |              |   |         |        
|                                        |                                          |   | 489.4       |         |              |   | 457.9   |        
|                                       
|                                       
|                                       
|                                       
|                                        | Notes payable                            |   |             | 99.7    |              |   |         | 153.1   | 
|                                       
|                                       
|                                       
|                                       
|                                        | Current portion of long-term debt        |   |             | 76.9    |              |   |         | 76.8    | 
|                                        |                                          |   |             |         |              |   |         |        
|                                        |                                          |   | 666.0       |         |              |   | 687.8   |        
|                                        |                                          |   |             |         |              |   |         |        
|DEFERRED CREDITS AND OTHER LIABILITIES:
|                                       
|                                       
|                                       
|                                       
|                                        | Deferred income taxes                    |   |             | 486.3   |              |   |         | 509.9   | 
|                                       
|                                       
|                                       
|                                       
|                                        | Unamortized investment tax credits       |   |             | 65.6    |              |   |         | 69.5    | 
|                                       
|                                       
|                                       
|                                       
|                                        | Other postretirement benefit costs       |   |             | 122.3   |              |   |         | 119.4   | 
|                                       
|                                       
|                                       
|                                       
|                                        | Other                                    |   |             | 220.0   |              |   |         | 218.6   | 
|                                        |                                          |   |             |         |              |   |         |        
|                                        |                                          |   | 894.2       |         |              |   | 917.4   |        
|                                        |                                          |   |             |         |              |   |         |        
|                                        |                                          | $ | 4,997.1     |         |              | $ | 5,002.5 |        
|                                        |                                          |   |             |         |              |   |         |        

The accompanying notes are an integral part of these financial statements.

9



---



FLORIDA POWER CORPORATION
Statements of Cash Flows
(Dollars in millions)

|                                                  |                                                       |                                                       |        |                  |       |      |        |        |       |  
|------------------------------------------------- | ----------------------------------------------------- | ----------------------------------------------------- | ------ | ---------------- | ----- | ---- | ------ | ------ | ----- | -
|                                                  |                                                       |                                                       |        | Six Months Ended
|                                                  |                                                       |                                                       |        | June 30,        
|                                                  |                                                       |                                                       |        |                 
|                                                  |                                                       |                                                       |        | 2000             |       | 1999
|                                                  |                                                       |                                                       |        |                  |       |     
|                                                  |                                                       |                                                       |        | (Unaudited)     
|OPERATING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Net income after dividends on preferred stock         |                                                       | $      | 142.9            |       |      | $      | 127.9  |      
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Adjustments for noncash items:                       
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Depreciation and amortization                         |        |                  | 194.3 |      |        |        | 186.7 |  
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Deferred income taxes and investment tax credits, net |        |                  | (14.9 | )    |        |        | (24.6 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Changes in working capital:                          
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Accounts receivable                                   |        |                  | (36.7 | )    |        |        | (18.4 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Inventories                                           |        |                  | (13.5 | )    |        |        | (34.5 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Overrecovered/underrecovered utility fuel costs       |        |                  | (58.7 | )    |        |        | (.5   | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Accounts payable                                      |        |                  | 1.3   |      |        |        | (41.2 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Taxes payable                                         |        |                  | 111.8 |      |        |        | 100.3 |  
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Prepayments and other                                 |        |                  | (57.2 | )    |        |        | (12.9 | )
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Other operating activities                            |                                                       |        | 10.6             |       |      |        | 4.2    |      
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|                                                  |                                                       |                                                       | 279.9  |                  |       |      | 287.0  |       
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|INVESTING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Construction expenditures                             |                                                       |        | (109.1           | )     |      |        | (168.2 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Allowance for borrowed funds used during construction |                                                       |        | (.9              | )     |      |        | (3.5   | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Other investing activities                            |                                                       |        | (8.3             | )     |      |        | (8.2   | )    
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|                                                  |                                                       |                                                       | (118.3 | )                |       |      | (179.9 | )     
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|FINANCING ACTIVITIES:                            
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Repayment of long-term debt                           |                                                       |        | (.9              | )     |      |        | (.8    | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Dividends paid on common stock                        |                                                       |        | (102.5           | )     |      |        | (100.0 | )    
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Decrease in short-term debt                           |                                                       |        | (53.4            | )     |      |        | (.9    | )    
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|                                                  |                                                       |                                                       | (156.8 | )                |       |      | (101.7 | )     
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|NET INCREASE IN CASH AND EQUIVALENTS              |                                                       |                                                       | 4.8    |                  |       |      | 5.4    |       
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Beginning cash and equivalents                        |                                                       |        |                 |       |      |        |       |      
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|ENDING CASH AND EQUIVALENTS                       |                                                       | $                                                     | 4.8    |                  |       | $    | 5.4    |       
|                                                  |                                                       |                                                       |        |                  |       |      |        |       
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  | Cash paid during the period for:                     
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Interest (net of amount capitalized)                  |        | $                | 64.1  |      |        | $      | 57.9  |  
|                                                 
|                                                 
|                                                 
|                                                 
|                                                  |                                                       | Income taxes (net of refunds)                         |        | $                | 31.3  |      |        | $      | 42.9  |  

The accompanying notes are an integral part of these financial statements.

10



---



FLORIDA PROGRESS CORPORATION AND FLORIDA POWER CORPORATION

NOTES TO FINANCIAL STATEMENTS



|1) |  | Florida Progress Corporations (Florida Progress or the Company)
principal business segment is its Utility segment. Florida Power
Corporation (Florida Power), the largest subsidiary of Florida Progress,
engages in the generation, purchase, transmission, distribution and sale
of electricity. Florida Progress other reportable business segments are
Electric Fuels Corporations (Electric Fuels) Energy and Related
Services, Rail Services and Inland Marine Transportation units. Financial
data for business segments for the periods covered in this Form 10-Q are
presented in the table below:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   |                           |         |   |                  |  |          |            |                |      |       |               |              |  |              |   |       |  |  |   |       |   |  |   |        |   |  |   |         | 
|---------------------------------- | ------------------------- | ------- | - | ---------------- |  | -------- | ---------- | -------------- | ---- | ----- | ------------- | ------------ |  | ------------ | - | ----- |  |  | - | ----- | - |  | - | ------ | - |  | - | ------- | 
|                                   |                           |         |   |                  |  |          | Energy and |                | Rail |       | Inland Marine
|(In millions)                      |                           | Utility |   | Related Services |  | Services |            | Transportation |      | Other |               | Eliminations |  | Consolidated
|                                   |                           |         |   |                  |  |          |            |                |      |       |               |              |  |             
|Three months ended
 June 30, 2000:
|                                  
|                                  
|                                  
|                                  
|                                   | Revenues                  |         | $ | 701.4            |  |          | $          | 57.3           |      |       | $             | 284.4        |  |              | $ | 43.6  |  |  | $ | 5.7   |   |  | $ | 1.1    |   |  | $ | 1,093.5 | 
|                                  
|                                  
|                                  
|                                  
|                                   | Intersegment revenues     |         |   |                 |  |          |            | 66.4           |      |       |               | .3           |  |              |   | 5.2   |  |  |   | (3.1  | ) |  |   | (68.8  | ) |  |   |        | 
|                                  
|                                  
|                                  
|                                  
|                                   | Segment net income (loss) |         |   | 79.5             |  |          |            | 33.0           |      |       |               | 1.9          |  |              |   | 3.5   |  |  |   | (7.8  | ) |  |   | (.2    | ) |  |   | 109.9   | 
|                                  
|                                  
|                                  
|                                  
|Six months ended
 June 30, 2000:  
|                                  
|                                  
|                                  
|                                  
|                                   | Revenues                  |         | $ | 1,323.3          |  |          | $          | 106.0          |      |       | $             | 525.0        |  |              | $ | 81.5  |  |  | $ | 5.5   |   |  | $ | 2.3    |   |  | $ | 2,043.6 | 
|                                  
|                                  
|                                  
|                                  
|                                   | Intersegment revenues     |         |   |                 |  |          |            | 131.0          |      |       |               | .3           |  |              |   | 9.5   |  |  |   | (5.0  | ) |  |   | (135.8 | ) |  |   |        | 
|                                  
|                                  
|                                  
|                                  
|                                   | Segment net income
(loss) |         |   | 142.9            |  |          |            | 53.3           |      |       |               | 2.8          |  |              |   | 4.8   |  |  |   | (17.0 | ) |  |   | (.4    | ) |  |   | 186.4   | 
|                                  
|                                  
|                                  
|                                  
|                                   | Total assets              |         |   | 4,997.1          |  |          |            | 527.5          |      |       |               | 875.5        |  |              |   | 103.0 |  |  |   | 483.8 |   |  |   | (340.5 | ) |  |   | 6,646.4 | 
|                                  
|                                  
|                                  
|                                  
|Three months ended
 June 30, 1999:
|                                  
|                                  
|                                  
|                                  
|                                   | Revenues                  |         | $ | 671.7            |  |          | $          | 44.8           |      |       | $             | 224.5        |  |              | $ | 33.5  |  |  | $ | .6    |   |  | $ | 1.2    |   |  | $ | 976.3   | 
|                                  
|                                  
|                                  
|                                  
|                                   | Intersegment revenues     |         |   |                 |  |          |            | 62.3           |      |       |               | .6           |  |              |   | 4.1   |  |  |   | (1.9  | ) |  |   | (65.1  | ) |  |   |        | 
|                                  
|                                  
|                                  
|                                  
|                                   | Segment net income
(loss) |         |   | 65.5             |  |          |            | 8.3            |      |       |               | 5.7          |  |              |   | 2.2   |  |  |   | (5.1  | ) |  |   |       |   |  |   | 76.6    | 
|                                  
|                                  
|                                  
|                                  
|Six months ended 
June 30, 1999:  
|                                  
|                                  
|                                  
|                                  
|                                   | Revenues                  |         | $ | 1,242.4          |  |          | $          | 87.6           |      |       | $             | 398.5        |  |              | $ | 63.7  |  |  | $ | 2.1   |   |  | $ | 2.4    |   |  | $ | 1,796.7 | 
|                                  
|                                  
|                                  
|                                  
|                                   | Intersegment revenues     |         |   |                 |  |          |            | 128.1          |      |       |               | 1.0          |  |              |   | 8.1   |  |  |   | (6.5  | ) |  |   | (130.7 | ) |  |   |        | 
|                                  
|                                  
|                                  
|                                  
|                                   | Segment net income
(loss) |         |   | 127.9            |  |          |            | 16.4           |      |       |               | 6.2          |  |              |   | 2.9   |  |  |   | (9.2  | ) |  |   |       |   |  |   | 144.2   | 
|                                  
|                                  
|                                  
|                                  
|                                   | Total assets              |         |   | 4,972.9          |  |          |            | 326.5          |      |       |               | 754.2        |  |              |   | 96.5  |  |  |   | 523.9 |   |  |   | (371.7 | ) |  |   | 6,302.3 | 



|2) |  | In November 1999, Florida Power received approval from the Florida Public
Service Commission (FPSC) to defer nonfuel revenues towards the
development of a plan that would allow customers to realize the benefits
earlier than if they are used to accelerate the amortization of the Tiger
Bay regulatory asset. The approval required that a plan be submitted to
the FPSC by August 1, 2000. On July 31, 2000, Florida Power filed a
motion with the FPSC requesting a two-month extension. If a plan is not
filed by October 2, 2000, Florida Power would be required to apply the
deferred revenues of $44.4 million, plus accrued interest, to accelerate
the amortization of the Tiger Bay regulatory asset.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11



---





|3) |  | FLORIDA PROGRESS OBLIGATED MANDATORILY REDEEMABLE CUMULATIVE QUARTERLY
INCOME PREFERRED SECURITIES (QUIPS) OF A SUBSIDIARY TRUST HOLDING SOLELY
FLORIDA PROGRESS GUARANTEED SUBORDINATED DEFERRABLE INTEREST NOTES
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In April 1999, FPC Capital I (the Trust), an indirect wholly owned
subsidiary of Florida Progress, issued 12 million shares of $25 par
cumulative Company-obligated mandatorily redeemable preferred securities
(Preferred Securities) due 2039, with an aggregate liquidation value of
$300 million and a quarterly distribution rate of 7.10%. Currently, all 12
million shares of the Preferred Securities that were issued are outstanding.
Concurrent with the issuance of the Preferred Securities, the Trust issued to
Florida Progress Funding Corporation (Funding Corp.) all of the common
securities of the Trust (371,135 shares), for $9.3 million. Funding Corp. is
a direct wholly owned subsidiary of the Company.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The existence of the Trust is for the sole purpose of issuing the Preferred
Securities and the common securities and using the proceeds thereof to
purchase from Funding Corp. its 7.10% Junior Subordinated Deferrable Interest
Notes (subordinated notes) due 2039, for a principal amount of $309.3
million. The subordinated notes and the Notes Guarantee (as discussed below)
are the sole assets of the Trust. Funding Corp.s proceeds from the sale of
the subordinated notes were advanced to Progress Capital Holdings, Inc.
(PCH), a subsidiary of Florida Progress that provides financing for Florida
Progress diversified operations, and used for general corporate purposes
including the repayment of a portion of certain outstanding short-term bank
loans and commercial paper.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Company has fully and unconditionally guaranteed the obligations of
Funding Corp. under the subordinated notes (the Notes Guarantee). In
addition, the Company has guaranteed the payment of all distributions
required to be made by the Trust, but only to the extent that the Trust has
funds available for such distributions (Preferred Securities Guarantee).
The Preferred Securities Guarantee, considered together with the Notes
Guarantee, constitutes a full and unconditional guarantee by the Company of
the Trusts obligations under the Preferred Securities.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The subordinated notes may be redeemed at the option of Funding Corp.
beginning in 2004 at par value plus accrued interest through the redemption
date. The proceeds of any redemption of the subordinated notes will be used
by the Trust to redeem proportional amounts of the Preferred Securities and
common securities in accordance with their terms. Upon liquidation or
dissolution of Funding Corp., holders of the Preferred Securities would be
entitled to the liquidation preference of $25 per share plus all accrued and
unpaid dividends thereon to the date of payment.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4) |  | CONTINGENCIES
|-- |  | -------------



| |  | Insurance Florida Progress and its subsidiaries utilize various risk
management techniques to protect certain assets from risk of loss, including
the purchase of insurance. Risk avoidance, risk transfer and self-insurance
techniques are utilized depending on the Companys ability to assume risk,
the relative cost and availability of methods for transferring risk to third
parties, and the requirements of applicable regulatory bodies.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Florida Power self-insures its transmission and distribution lines against
loss due to storm damage and other natural disasters. Pursuant to a
regulatory order, Florida Power is accruing $6 million annually to a storm
damage reserve and may defer any losses in excess of the reserve. The
reserve balances at June 30, 2000 and 1999 were $28.6 million and $27.1
million, respectively.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Under the provisions of the Price Anderson Act, which limits liability for
accidents at nuclear power
plants, Florida Power, as an owner of a nuclear
plant, can be assessed for a portion of any third-party
liability claims
arising from an accident at any commercial nuclear power plant in the United
States. If total
third-party claims relating to a single nuclear incident
exceed $200 million (the amount of currently available
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12



---





| |  | commercial liability
insurance), Florida Power could be assessed up to $88.1 million per incident,
with a maximum assessment of $10 million per year.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Florida Power also maintains nuclear property damage insurance and
decontamination and decommissioning liability insurance. Effective October
1, 1999, the total limit purchased for this type of insurance was reduced
from $2.1 billion to $1.6 billion. The reduction was based on a review of
the potential property damage exposure, the legal minimum required to be
carried, and the amount of insurance being purchased by other owners of
single unit nuclear sites. The first $500 million layer of insurance is
purchased in the commercial insurance market with the remaining excess
coverage purchased from Nuclear Electric Insurance Ltd. (NEIL). Florida
Power is self-insured for any losses that are in excess of this coverage.
Under the terms of the NEIL policy, Florida Power could be assessed up to a
maximum of $5.3 million in any policy year if losses in excess of NEILs
available surplus are incurred.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Florida Power has never been assessed under these nuclear indemnities or
insurance policies.
| |  | --------------------------------------------------------------------------------------------



| |  | Contaminated Site Cleanup The Company is subject to regulation with respect
to the environmental impact of its operations. The Companys disposal of
hazardous waste through third-party vendors can result in costs to clean up
facilities found to be contaminated. Federal and state statutes authorize
governmental agencies to compel responsible parties to pay for cleanup of
these hazardous waste sites.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Florida Power and former subsidiaries of the Company, whose properties were
sold in prior years, have been identified by the U.S. Environmental
Protection Agency (EPA) as Potentially Responsible Parties (PRPs) at
certain sites. Liability for the cleanup of costs at these sites is joint
and several.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | One of the sites that Florida Power previously owned and operated is located
in Sanford, Florida. There are five parties, including Florida Power, that
have been identified as PRPs at the Sanford site. A Participation Agreement
was signed, and subsequently amended, among the PRPs of the Sanford site to
allocate $1.9 million to perform a Remedial Investigation, Baseline Risk
Assessment and Feasibility Study (RI/FS) for phases one and two of the
cleanup. Florida Power is liable for approximately 40% of the costs for the
RI/FS as agreed to in the Participation Agreement. In July 1999, the initial
draft of the RI/FS was submitted to the EPA. In March 2000, the EPA selected
a preferred remedy for the cleanup of the contaminated soils at the site,
which was documented in a Record of Decision on July 5, 2000.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Additionally, the PRP group negotiated a second participation agreement that
defined and allocated Remedial Design and Remedial Action costs among the
participants for Phase I of the cleanup. Cleanup will be addressed in three
phases for project management purposes. Florida Powers future cost share
allocation is approximately 43%. The discussions and resolution of liability
for cleanup costs could cause Florida Power to increase the estimate of its
liability for those costs. The range of any additional costs are not
expected to have a material effect on Florida Progress or Florida Powers
financial position, results of operations or liquidity.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In December 1998, the EPA conducted an Expanded Site Inspection at a former
Florida Power plant site near Inglis, Florida. Soil and groundwater samples
were obtained from the Florida Power property, as well as sediment samples
from the adjacent Withlacoochee River. A final copy of the report, along
with a Request for Information under the Comprehensive Environmental Response
Compensation and Liability Act (CERCLA or Superfund) was received in
December 1999. Upon review of Florida Powers reply and further testing at
the site, the EPAs conclusions may change the current hazard ranking and
ultimately result in the Inglis site being placed on the National Priorities
List (NPL). If this property is placed on the NPL, then the EPA could
conduct remediation actions at the site and seek repayment of those costs as
well as investigative costs from any PRPs. Past costs currently exceed $3.5
million with Florida Power identified as the only major viable business
associated with this site. In June 2000, Florida Power received confirmation
that the EPA intends to issue a Consent Order, which would require Florida
Power to enter into an agreement to conduct an RI/FS on the property. The
EPA has indicated that it intends to conduct additional sediment sampling in
the Withlacoochee River in September 2000. Such sampling could
expand the scope, and thus the cost, of any required cleanup.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13



---





| |  | In addition to these designated sites, there are other sites where Florida
Progress may be responsible for additional environmental cleanup. Florida
Progress estimates that its share of liability for cleaning up all designated
sites ranges from $9.0 million to $13.0 million. It has accrued $9.0 million
against these potential costs. There can be no assurance that the Companys
estimates will not change in the future.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Age Discrimination Suit Florida Power and Florida Progress have been named
defendants in an age discrimination lawsuit. The number of plaintiffs
remains at 116, but four of those plaintiffs have had their federal claims
dismissed and 74 others have had their state age claims dismissed. While no
dollar amount was requested, each plaintiff seeks back pay, reinstatement or
front pay through their projected dates of normal retirement, costs and
attorneys fees. In October 1996, the Federal Court approved an agreement
between the parties to provisionally certify this case as a class action suit
under the Age Discrimination in Employment Act. Florida Power filed a motion
to decertify the class and in August 1999, the Court granted Florida Powers
motion. In October 1999, the judge certified the question of whether the
case should be tried as a class action to the Eleventh Circuit Court of
Appeals for immediate appellate review. In December 1999, the Court of
Appeals agreed to review the judges order decertifying the class and
scheduled oral arguments for October 2000. In anticipation of a potential
ruling decertifying the case as a class action, plaintiffs filed a virtually
identical lawsuit which identified all opt-in plaintiffs as named plaintiffs.
This case had been held in abeyance until reactivated in July 2000 upon
motion of the plaintiffs.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In December 1998, during mediation in this age discrimination suit,
plaintiffs alleged damages of $100 million. Company management, while not
believing plaintiffs claim to have merit, offered $5 million in an attempt
to settle all claims. Plaintiffs rejected that offer. Florida Power and the
plaintiffs engaged in informal settlement discussions, which terminated on
December 22, 1998. As a result of the plaintiffs claims, management has
identified a probable range of $5 million to $100 million with no amount
within that range a better estimate of probable loss than any other amount;
accordingly, Florida Power has accrued $5 million. In December 1999, Florida
Power also recorded an accrual of $4.8 million for legal fees associated with
defending its position in these proceedings. There can be no assurance that
this litigation will be settled, or if settled, that the settlement will not
exceed $5 million. Additionally, the ultimate outcome, if litigated, cannot
presently be determined.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Advanced Separation Technologies (AST) In 1996, Florida Progress sold its
80% interest in AST to Calgon Carbon Corporation (Calgon) for net proceeds
of $56 million in cash. In January 1998, Calgon filed a lawsuit against
Florida Progress and the other selling shareholder and amended it in April
1998, alleging misstatement of ASTs 1996 revenues, assets and liabilities,
seeking damages and granting Calgon the right to rescind the sale. The
lawsuit also accused the sellers of failing to disclose flaws in ASTs
manufacturing process and a lack of quality control. Florida Progress
believes that the aggregate total of all legitimate warranty claims by
customers of AST for which it is probable that Florida Progress will be
responsible for under the Stock Purchase Agreement with Calgon is
approximately $3.2 million, and accordingly, accrued $3.2 million in the
third quarter of 1999 as an estimate of probable loss.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Qualifying Facilities Contracts Florida Powers purchased power contracts
with qualifying facilities employ separate pricing methodologies for capacity
payments and energy payments. Florida Power has interpreted the pricing
provision in these contracts to allow it to pay an as-available energy price
rather than a higher firm energy price when the avoided unit upon which the
applicable contract is based would not have been operated.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The owners of four qualifying facilities filed suits against Florida Power in
state court over the contract payment terms, and one owner also filed suit in
federal court. Three of the state court suits have been settled, and the
federal case was dismissed. The most recent case to settle involved Dade
County/Dade Cogen. In May 1999, the parties reached an agreement in
principle to settle their dispute in its entirety, including all of the
ongoing litigation. The settlement agreement was approved by the Dade County
Commission in December 1999 and by the FPSC in June 2000.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14



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| |  | In the remaining state court suit, the trial regarding NCP Lake Power
(Lake) concluded in December 1998. In April 1999, the judge entered an
order granting Lakes breach of contract claim and ruled that Lake is
entitled to receive firm energy payments during on-peak hours, but for all
other hours, Lake is entitled to the as-available rate. The Court also
ruled that for purposes of calculating damages, the breach of contract
occurred at the inception of the contract. In August 1999, a Final Judgment
was entered for Lake for approximately $4.5 million and Lake filed a Notice
of Appeal. In September 1999, Florida Power filed a notice of cross appeal.
Also in this case, in April 1998, Florida Power filed a petition with the
FPSC for a Declaratory Statement that the contract between the parties limits
energy payments thereunder to the avoided costs based upon an analysis of a
hypothetical unit having the characteristics specified in the contract. In
October 1998, the FPSC denied the petition, but Florida Power appealed to the
Florida Supreme Court.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Management does not expect that the results of these legal actions will have
a material impact on Florida Powers financial position, results of
operations or liquidity. Florida Power anticipates that all fuel and
capacity expenses, including any settlement amounts incurred as a result of
the matters discussed above, will be recovered from its customers.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Mid-Continent Life Insurance Company(Mid-Continent) As discussed below,
a series of events in 1997 significantly jeopardized the ability of
Mid-Continent to implement a plan to eliminate a projected reserve
deficiency, resulting in the impairment of Florida Progress investment in
Mid-Continent. Therefore, Florida Progress recorded a provision for loss on
investment of $86.9 million in 1997. Florida Progress also recorded an
accrual at December 31, 1997, for legal fees associated with defending its
position in current Mid-Continent legal proceedings.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In the spring of 1997, the Oklahoma State Insurance Commissioner
(Commissioner) received court approval to seize control as receiver of the
operations of Mid-Continent. The Commissioner had alleged that
Mid-Continents reserves were understated by more than $125 million, thus
causing Mid-Continent to be statutorily impaired. The Commissioner further
alleged that Mid-Continent had violated Oklahoma law relating to deceptive
trade practices in connection with the sale of its Extra Life insurance
policies and was not entitled to raise premiums, a key element of
Mid-Continents plan to address the projected reserve deficiency. While
sustaining the receivership, the court also ruled that premiums could be
raised. Although both sides appealed the decision to the Oklahoma Supreme
Court, those appeals were withdrawn in early 1999.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In December 1997, the receiver filed a lawsuit against Florida Progress,
certain of its directors and officers, and certain former Mid-Continent
officers, making a number of allegations and seeking access to Florida
Progress assets to satisfy policyholder and creditor claims. In April 1998,
the court granted motions to dismiss the individual defendants, leaving
Florida Progress as the sole remaining defendant in the lawsuit.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | A new Commissioner was elected in November 1998 and has stated his intention
to work with Florida Progress and others to develop a plan to rehabilitate
Mid-Continent rather than pursue litigation against Florida Progress. Based
on data through December 31, 1998, Florida Progress actuarial estimate of
the additional assets necessary to fund the reserve, after applying
Mid-Continents statutory surplus is in the range of $100 million. The
amount put forth by the actuary hired by the former Commissioner was in the
range of $350 million. Florida Progress believes that any estimate of the
projected reserve deficiency would affect only the assets of Mid-Continent,
because Florida Progress has legal defenses to any claims asserted against
it. Florida Progress is working with the new Commissioner to develop a
viable plan to rehabilitate Mid-Continent, which would include the sale of
that company or assumption of its policies.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Proposals for a plan of rehabilitation were
received and opened in June 1999.
In October 1999,
the new Commissioner signed a Letter of Intent, subject to
approval by the Oklahoma District Court,
with Iowa-based Life Investors
Insurance Company of America, a wholly owned subsidiary of AEGON
USA, Inc.,
concerning the assumption of all policies of Mid-Continent. In a letter of
intent in connection with
the proposed plan of rehabilitation, Florida
Progress agreed to assign all of Mid-Continents stock to the
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15



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| |  | receiver, and
contribute $10 million to help offset future premium rate increases or
coverage reductions, provided that, among other things, Florida Progress
receives a full release from liability, and the receivers action against
Florida Progress is dismissed, with prejudice. The $10 million was proposed
to be held in escrow by the Commissioner for a period of 10 years and
invested for the benefit of the policyholders. Any proposed premium
increases would have been offset by this fund until it was exhausted. The
Mid-Continent plan was originally scheduled to be considered by the Oklahoma
County District Court in December 1999, but the Court postponed its
consideration. The Court ordered the filing of new proposals by May 22, 2000.
The Commissioner has recommended the proposal submitted by American
Fidelity Assurance Company. A confirmation hearing on the Commissioners
recommendation is expected in September 2000.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Florida Progress now believes that as part of any plan of rehabilitation, the
Company will be required to contribute the aforementioned $10 million
regardless of which party ultimately assumes the policies of Mid-Continent.
Accordingly, Florida Progress accrued an additional provision for loss of $10
million in December 1999. The loss was more than offset by the recognition
of tax benefits of approximately $11 million, related to the excess of the
tax basis over the current book value of the investment in Mid-Continent, and
thus, did not have a material impact on Florida Progress consolidated
financial position, results of operations, or liquidity. This benefit had
not been recorded earlier due to uncertainties associated with the timing of
the tax deduction.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In January 1999, five Mid-Continent policyholders filed a purported class
action against Mid-Continent and the same defendants named in the case filed
by the former Commissioner. The complaint contains substantially the same
factual allegations as those made by the former Commissioner. The suit
asserts Extra Life policyholders have been injured as a result of
representations made in connection with the sale of that policy. The suit
seeks actual and punitive damages. As allowed by the Court, plaintiffs
filed a second amended petition after prior filings were dismissed as a
result of defendants motions. Defendants motions to dismiss the latest
petition were denied.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | On April 17, 2000, Florida Progress filed an answer to the second amended
petition. That answer denied all material allegations of the petition. On
April 27, 2000, Florida Progress filed an amended answer and third party
petition, which asserted claims for indemnity and contribution against John
P. Crawford in his capacity as a prior actuary to Mid-Continent and Lewis &
Ellis, Inc., the actuarial firm that designed the Mid-Continent Extra Life
policy. On May 2, 2000, Florida Progress and other defendants filed an
application for writ of prohibition in the Oklahoma Supreme Court, requesting
that the Oklahoma Supreme Court resolve the issue of whether the policyholder
plaintiffs have standing to pursue their lawsuit which was subsequently
denied. The Commissioner has filed a motion in the rehabilitation court
proceeding to enjoin the policyholder action.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Although Florida Progress hopes to complete the negotiated resolution of
these matters involving Mid-Continent, it will continue to vigorously defend
itself against the two lawsuits, if that is required. Although there can be
no assurance as to the outcome of the two lawsuits, Florida Progress believes
they are without merit and that their outcomes would not have a material
adverse effect on Florida Progress consolidated financial position, results
of operations or liquidity.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Share Exchange Litigation In August 1999, Florida Progress announced that
it entered into an
Agreement and Plan of Exchange with Carolina Power & Light
Company (CP&L), and CP&L Energy,
Inc., a wholly owned subsidiary of CP&L.
A lawsuit was filed in September 1999, against Florida
Progress
and its
directors seeking class action status, an unspecified amount of damages and
injunctive relief,
including a declaration that the agreement and plan of
exchange was entered into in breach of the fiduciary
duties of the Florida
Progress board of directors, and enjoining Florida Progress from
proceeding with the
share exchange. The complaint also seeks an award of costs and
attorneys fees. Florida Progress believes
this suit is without merit and
intends to vigorously defend itself against this action.
Management does not
expect that the result of this legal action will have a material adverse
impact on Florida Progress financial
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16



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| |  | position, results of operations or
liquidity. Accordingly, no provision for loss has been recorded pertaining
to this matter.
| |  | -----------------------------------------------------------------------------------------------------------------------------



| |  | Easement Litigation In December 1998, Florida Power was served with a class
action lawsuit seeking damages, declaratory and injunctive relief for the
alleged improper use of electric transmission easements. The plaintiffs
contend that the licensing of fiber optic telecommunications lines to third
parties or telecommunications companies for other than Florida Powers
internal use along the electric transmission line right-of-way exceeds the
authority granted in the easements. In June 1999, plaintiffs amended their
complaint to add Progress Telecommunications Corporation, an indirect wholly
owned subsidiary of Florida Progress, as a defendant and to add counts for
unjust enrichment and constructive trust. In January 2000, the court
conditionally certified the class statewide. In a mediation held in March
2000, the parties reached a tentative settlement of this claim, which is
subject to the resolution of procedural issues relating to class matters as
well as court approval. Management does not expect that the results of these
legal actions will have a material impact on Florida Progress financial
position, results of operations or liquidity. Accordingly, no provision for
loss has been recorded pertaining to this matter.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Legal Matters Florida Progress and Florida Power are involved in
various other claims and legal actions arising in the ordinary course of
business. In the opinion of management, the ultimate disposition of these
matters will not have a material adverse effect upon either companys
consolidated financial position, results of operations or liquidity.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5) |  | In the opinion of management, the accompanying financial statements
include all adjustments deemed necessary to summarize fairly and reflect
the financial position and results of operations of Florida Progress and
Florida Power for the interim periods presented. Quarterly results are
not necessarily indicative of results for the full year. These financial
statements should be read in conjunction with the financial statements and
notes thereto in the combined Annual Report on Form 10-K of Florida
Progress and Florida Power for the year ended December 31, 1999 (the 1999
Form 10-K).
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ITEM 2. |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND
RESULTS OF OPERATIONS
|------- |  | -------------------------------------------------------------------------------------

OPERATING RESULTS

Florida Progress consolidated earnings for the three-month period ended June
30, 2000 were $1.11 per share compared to earnings of $.78 per share for the
same period in 1999. Most of the increase is attributable to increased
synthetic fuel sales from its diversified operations combined with the effect
of a return to more normal weather conditions for Florida Power Corporation,
the Companys largest subsidiary.

For the six-month period ended June 30, 2000, Florida Progress consolidated
earnings were $1.89 per share, a 28 percent increase over the $1.48 earnings
per share reported for the same period in 1999.

A reconciliation of Florida Progress 2000 second quarter earnings per share is
as follows:

|                                         |                   |                                       |  |  |      |   |      |      |   | 
|---------------------------------------- | ----------------- | ------------------------------------- |  |  | ---- | - | ---- | ---- | - | 
|1999 Florida Progress Second Quarter EPS
|                                        
|                                        
|                                        
|                                        
|                                         | Florida Power     |                                       |  |  |      |   | $    | .78  |  
|                                        
|                                        
|                                        
|                                        
|                                         |                   | Sales of electricity & other revenues |  |  | .09  |  
|                                        
|                                        
|                                        
|                                        
|                                         |                   | Operations & maintenance              |  |  | .07  |  
|                                        
|                                        
|                                        
|                                        
|                                         |                   | Depreciation & amortization           |  |  | (.02 | )
|                                         |                   |                                       |  | 
|                                         |                   |                                       |  |  |      |   | .14  |     
|                                        
|                                        
|                                        
|                                        
|                                         | Electric Fuels    |                                       |  |  |      |   |      | .21  |  
|                                        
|                                        
|                                        
|                                        
|                                         | Corporate & other |                                       |  |  |      |   |      | (.02 | )
|                                         |                   |                                       |  |  |      |   |      |     
|2000 Florida Progress Second Quarter EPS |                   |                                       |  |  |      | $ | 1.11 |     
|                                         |                   |                                       |  |  |      |   |      |     

17



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FLORIDA POWER CORPORATION

Florida Power, reported $.81 per share, for the second quarter of 2000 compared
with $.67 per share for the same period last year. Florida Powers earnings for
the six-month period ended June 30, 2000 were $1.45 per share compared to
earnings of $1.31 per share for the same period last year. The improved
earnings for both the three and six month periods were due primarily to higher
kilowatt-hour sales and lower operation and maintenance expenses.

Florida Powers total kilowatt-hour sales increased 4.7 and 6.6 percent,
respectively, during the three and six month period of 2000, compared with
1999. The improvement was primarily due to strong customer growth and a return
to more normal temperatures.

Retail sales were up 5.6 percent for the quarter as Florida Power provided
electric service to approximately 30,000 new customers during the second
quarter of 2000 compared with last year. Weather during the second quarter
returned to normal compared to the second quarter of 1999 when cooling degree
days were 51 percent lower.

Operation and maintenance expense was down $11.3 million and $8.4 million
during the quarter and year-to-date periods. Most of the decrease is due
primarily to the timing of planned maintenance and reliability projects, most
of which are expected to occur later this year.

DIVERSIFIED OPERATIONS

Revenues for diversified operations increased $87.5 million and $166.0 million,
respectively, for the three and six months ended June 30, 2000 compared to the
same period in the prior year. Cost of sales for Florida Progress diversified
operations were $107.7 million and $186.8 million higher for the three and six
months ended June 30, 2000 compared to the same period last year. The
increases were due primarily to acquisitions in Electric Fuels Rail Services
group and increased synfuel operations.

The sale of synthetic fuel results in a loss before the benefit of alternative
fuel tax credits. Because of the increase in sales of synthetic fuel for the
three and six month periods ended June 30, 2000 as compared to the same periods
in the prior year, overall diversified operations gross profit declined in both
periods of the current year.

ELECTRIC FUELS CORPORATION

Electric Fuels earned $.36 per share, in the second quarter, compared with $.15
per share, last year. Most of the improvement in earnings came from the Energy
& Related Services group, which includes the Companys synthetic fuel
operations.

Earnings at the Energy & Related Services group were up $24.7 million and $36.9
million for the three and six months ended June 30, 2000 over the same periods
in 1999, of which $11.1 million and $18.7 million was due to the timing of the
recognition of alternative fuel tax credits. The remaining amount of the
increase for both periods was due primarily to higher synthetic fuel sales
compared with last year. Electric Fuels has interests in nine synthetic fuel
plants, four of which were relocated and began operations during the first six
months of 2000.

Income tax expense for the six month period ended June 30,2000 reflects the
Companys estimate of its consolidated annual effective tax rate. The rate
differs from the U.S. Federal statutory rate of 35% primarily because of the
estimated amount of alternative fuel tax credits expected to be generated
during 2000.

18



---



During the three months ended June 30, 2000, the Company increased its estimate
of alternative fuel tax credits expected to be generated in 2000. Income tax
expense projected for the remainder of 2000 can change due to the amount of
alternative fuel tax credits, projected or actually generated, from synfuel
operations and from changes in pretax income.

Electric Fuels share of second-quarter sales of the coal-based synthetic fuel
was approximately 1.4 million tons, compared with .3 million tons during the
same period last year. Electric Fuels share of total synthetic fuel sales for
2000 from the plants it operates is expected to be approximately 5 million tons
compared with 1.6 million tons sold in 1999.

In April 2000, an affiliate of CP&L Energy purchased a 90% interest in an
affiliate of Electric Fuels that owns a synthetic fuels plant located at the
company owned mine site in Virginia. In May 2000, an affiliate of CP&L Energy
purchased a 90% ownership interest in another synthetic fuels plant located in
West Virginia. The purchase agreements contain a provision that requires the
CP&L Energy affiliate to sell, and an Electric Fuels affiliate to repurchase,
the 90% interest should the share exchange between Florida Progress, CP&L
Energy and CP&L not occur. The defined repurchase price approximates the
original consideration given for the interest, adjusted by an amount to
compensate Electric Fuels for a portion of the economic benefit realized by
CP&L Energy during the period it owned the interest in the plants. Electric
Fuels has accounted for the transactions as a sale for tax purposes and,
because of the repurchase obligation, as a financing for financial reporting.

Earnings from the Inland Marine Transportation group were up $1.3 million and
$1.9 million for the three and six-month periods ended June 30, 2000 compared
to the same periods in 1999. A larger barge fleet and more favorable weather
conditions more than offset the effect of higher diesel fuel prices compared to
last year.

Results in the Rail Services group decreased $3.8 million and $3.4 million for
the three and six-month periods when compared to 1999. The decrease for the
second quarter is the result of weak demand from the major railroad carriers
for mechanical and track work. Although demand among the Class 1 carriers is
not expected to improve substantially during the second half of 2000, the
long-term outlook for these services remains positive.

Electric Fuels second-quarter results also reflect higher interest expense
when compared with last year due largely to higher debt balances resulting from
the expansion of its operations. In addition, employee-related general
administrative expenses have increased when compared with the second quarter of
last year.

CORPORATE & OTHER

Corporate and other expenses were higher during the three and six months ended
June 30, 2000 compared with 1999 due primarily to costs associated with the
business combination with Carolina Power & Light.

LIQUIDITY AND CAPITAL RESOURCES

Florida Progress capital expenditures are expected to be funded primarily from
internally generated funds and debt. During the first six months of 2000,
$109.1 million was spent on the Florida Power construction program and $45.1
million was spent in diversified operations.

The share exchange agreement with CP&L limits Florida Progress total capital
expenditures, absent CP&L approval. (See prior discussion of this matter in
the 1999 Form 10-K, Item 7 MD&A  Future Cash Requirements.)

Florida Powers ratio of earnings to fixed charges was 4.53 for the twelve
months ended June 30, 2000. (See Exhibit 12 filed herewith).

19



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In April 1999, FPC Capital I, an affiliated business trust, completed the sale
of $300 million of Cumulative Quarterly Income Preferred Securities, which were
initially offered to the public at $25 per share. The securities are, in
effect, fully and unconditionally guaranteed by Florida Progress. Quarterly
distributions are payable at an annual rate of 7.10%. Florida Progress used
the net proceeds to repay a portion of certain outstanding short-term bank
loans and commercial paper and for other general corporate purposes. (See Note
3 to the Financial Statements.)

In March 2000, Florida Power established an uncommitted bank bid facility
allowing it to borrow and re-borrow and have loans outstanding at any time, up
to $100 million. The facility was established to temporarily supplement
commercial paper borrowings, as needed. The bank bid facility was not drawn on
as of June 30, 2000.

In April 2000, Progress Capital Holdings Inc. (PCH) updated its private
medium-term note (MTN) program and now has $400 million of MTNs available for
issuance.

PCH has uncommitted bank bid facilities authorizing it to borrow and re-borrow,
and have outstanding at any time, up to $300 million. As of June 30, 2000, $60
million was outstanding under these bid facilities. The loans were used to
temporarily supplement commercial paper borrowings, as needed.

In July 2000, PCH established a new $200 million, 364-day revolving bank credit
facility. The facility is used to support the issuance of commercial paper.
PCH has two additional revolving bank credit facilities: a 364-day, $100
million facility and a $300 million long-term facility that expires in 2003.
In connection with the closing of the new $200 million credit facility, PCH
increased its commercial paper program from $400 million to $600 million.

Florida Progress and Florida Power believe their available sources of liquidity
will be sufficient to fund their long-term and short-term capital requirements.
However, due to the pending share exchange with CP&L, Standard & Poors Ratings
Services, Moodys Investors Service and Duff & Phelps Credit Rating Co. have
announced they are reviewing the rated securities of Florida Power, PCH and FPC
Capital I for a possible ratings downgrade.

OTHER  COMBINATION WITH CP&L ENERGY

Florida Progress has mailed a Proxy Statement dated July 5, 2000, to its
shareholders of record on June 29, 2000, regarding the Annual Meeting of
Shareholders to be held on August 17, 2000. At the meeting, shareholders will
vote on a proposal to approve the amended and restated agreement and plan of
exchange among Florida Progress and Carolina Power & Light Company and CP&L
Energy, Inc., pursuant to which Florida Progress will become a wholly owned
subsidiary of CP&L Energy. A copy of the Proxy Statement, which shareholders
should read because it contains important information, is available, without
charge, at the Securities and Exchange Commissions web site at , or by
contacting Florida Progress Investor Services at P.O. Box 14042, St.
Petersburg, FL 33733. Telephone: (800) 937  2640

On July 7, 2000, the FPSC opened a docket to review Florida Powers earnings
including the effects of the combination with CP&L Energy. The FPSC does not
have the authority to approve or disapprove the combination, and the review is
not expected to delay the closing of the combination, which is expected to
occur in the fall of 2000. Florida Power continues to be subject to the June
1997 settlement agreement associated with the extended nuclear outage at
Crystal River Unit No. 3 that precludes any party to the agreement from seeking
or supporting any change to Florida Powers return on equity range until July
2001.

On July 12, 2000, CP&Ls combination with Florida Progress received approval by
the Federal Energy
Regulatory Commission (FERC) and the Federal Trade
Commission (FTC)/Department of Justice (See Part II,
Item 1, paragraph 5).
The FERC order approved the acquisition with the requirement that the companies
must
make a filing on or before October 15, 2000 (as required under FERC Order
2000), to transfer operational
control of their transmission facilities to a
regional transmission organization (RTO) on or before December 15,

20



---



2001. Both
CP&L Energy and Florida Progress are on track to comply with the clarification
in the FERCs order. In its review, the Department of Justice and the FTC
found no adverse effects on competition as a result of the combination.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements, including the expected
synfuel fuel sales level and related alternative fuel tax credits; the expected liability for cleaning up certain
environmental sites; the savings associated with the restructuring of certain
cogeneration contracts; the impact of the FPSC docket, FERC Order and other
regulatory proceedings on the expected closing date of the combination with
CP&L Energy; the impact of various legal proceedings on Florida Progress
financial condition; and the effect of interest rate fluctuations on pretax
earnings over the next fiscal year.

These statements, and any other statements contained in this report that are
not historical facts, are forward-looking statements that are based on a series
of projections and estimates regarding the economy, the electric utility
business and Florida Progress other businesses in general, and on factors
which impact Florida Progress directly. The estimates relate to the pricing of
services, the actions of regulatory bodies, and the effects of competition.
The words should, estimates, believes, expects, anticipates, plans
and intends, and variations of such words, and similar expressions, are
intended to identify forward-looking statements that involve risks and
uncertainties.

Key factors that have a direct impact on the ability to attain these estimates
include continued annual growth in customers; successful cost containment
efforts; actions of various other regulatory authorities and the efficient
operation of Florida Powers existing and future generating units. Other key
factors include the continued successful operation of synthetic fuel plants,
market acceptance of synthetic fuel, competition from competing products,
impact of environmental regulations on potential buyers, and economic and
weather conditions affecting the demand for, and supply of, not only
electricity but also Electric Fuels barge, rail and other services.

Also, in developing its forward-looking statements, Florida Progress and
Florida Power have made certain assumptions relating to productivity
improvements and the favorable outcome of various commercial, legal and
regulatory proceedings and the lack of disruption to its markets.

If Florida Progress and Florida Powers estimates regarding the economy, the
electric utility business and other factors differ materially from what
actually occurs, or if various legal or regulatory proceedings have unfavorable
outcomes, then actual results could vary significantly from the performance
projected in the forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATE RISK

Florida Progress is exposed to changes in interest rates primarily as a result
of its borrowing activities.

A hypothetical 66 basis point increase in interest rates (10% of Florida
Progress weighted average interest rate at June 30, 2000) affecting Florida
Progress variable rate debt ($726.8 million at June 30, 2000) would have an
immaterial effect on Florida Progress pre-tax earnings over the next fiscal
year. A hypothetical 10% decrease in interest rates would also have an
immaterial effect on the estimated fair value of Florida Progress long-term
debt at June 30, 2000.

21



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COMMODITY PRICE RISK

Currently at Florida Power, commodity price risk due to changes in market
conditions for fuel and purchased power are recovered through the fuel
adjustment clause, with no effect on earnings.

Electric Fuels is exposed to commodity price risk through coal and synfuel
sales, the scrap steel market and fuel for its marine transportation business.
A 10-percent change in the market price of those commodities would have an
immaterial effect on the earnings of Florida Progress.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS



|1. |  | Metropolitan Dade County and Montenay Power Corp. v. Florida Power
Corporation, Circuit Court of the Eleventh Circuit for Dade County,
Florida, Case No. 96-09598-CA-30
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Metropolitan Dade County and Montenay Power Corp. v. Florida Power
Corporation, U.S. District Court, Southern District, Miami Division, Case
No. 96-0594-C.V.-LENNARD
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In re: Petition for Declaratory Statement That Energy Payments Are
Limited to Analysis of Avoided Units Contractually Specified
Characteristics, Florida Public Service Commission, Docket No.
980283-EQ.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|



| |  | See prior discussion of this matter in the 1999 Form 10-K, Item 3,
paragraph 1. In June 2000, the Florida Public Service Commission approved
the settlement agreement between the parties. This concludes this matter
for reporting purposes, except to the extent that the Petition for
Declaratory Statement before the Florida Supreme Court, which may now be
moot as it relates to the Dade case, continues to have relevance to the
NCP Lake case, which is discussed in the 1999 Form 10-K, Item 3, paragraph
2. (See Note 4 to the Financial Statements  Contingencies  Qualifying
Facilities Contracts.)
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. |  | State of Oklahoma, ex rel. John P. Crawford, Insurance Commissioner v.
Mid-Continent Life Insurance Company, District Court of Oklahoma County,
State of Oklahoma, Case No. CJ-97-2518-62
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | State of Oklahoma, ex rel, John P. Crawford, Insurance Commissioner as
Receiver for Mid-Continent Life Insurance Company v. Florida Progress
Corporation, a Florida corporation, Jack Barron Critchfield, George
Ruppel, Thomas Steven Krzesinski, Richard Korpan, Richard Donald Keller,
James Lacy Harlan, Gerald William McRae, Thomas Richard Dlouhy, Andrew
Joseph Beal and Robert Terry Stuart, Jr., District Court of Oklahoma
County, State of Oklahoma, Case No. CJ-97-2518-62 (part of the same case
noted above).
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Michael Farrimond, Pamela S. Farrimond, Angela Fry, Jowhna Hill, and
Barbara Hodges, for themselves and all others similarly situated v.
Florida Progress Corporation, a Florida corporation, Jack Barron
Critchfield, George Ruppel, Thomas Steven Krzesinski, Richard Korpan,
Richard Donald Keller, James Lacy Harlan, Gerald William McRae, Thomas
Richard Dlouhy, Andrew Joseph Beal and Robert Terry Stuart, Jr.,
District Court of Oklahoma County, State of Oklahoma, Case No.
CJ-99-130-65
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | See prior discussion of this matter in the 1999 Form 10-K, Item 3,
paragraph 5, and the March 31,
2000 Form 10-Q, Part II, Item 1, paragraph
5. In the rehabilitation proceeding, Commissioner Fisher
has recommended
the proposal submitted by American Fidelity Assurance Company. A
confirmation
hearing on the Commissioners recommendation is expected in
September. In the Farrimond case, the
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22



---





| |  | Oklahoma Supreme Court denied the
writ of prohibition that was filed by Florida Progress and other
defendants requesting that the court resolve the issue of whether the
policyholder plaintiffs have standing to pursue their lawsuit. The
Commissioner has filed a motion in the rehabilitation court proceeding to
enjoin the Farrimond action. (See Note 4 to the Financial Statements 
Contingencies  Mid-Continent Life Insurance Company.)
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. |  | Sanford Gasification Plant Site, Sanford, Florida (Sanford Site).
|-- |  | -------------------------------------------------------------------



| |  | See prior discussion of this matter in the 1999 Form 10-K, Item 3,
paragraph 11, and March 31, 2000 Form 10-Q, Part II, Item 1, paragraph 3.
The revised target date for the EPA to issue the Record of Decision is
September 30, 2000. (See Note 4 to the Financial Statements 
Contingencies  Contaminated Site Cleanup.)
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. |  | Inglis Plant Site.
|-- |  | ------------------



| |  | See prior discussion of this matter in the 1999 Form 10-K, Item 3,
paragraph 12. The EPA has produced a draft of Special Notice Procedures
and a Consent Order which appear to confirm that the EPA intends to
require Florida Power to conduct a Remedial Investigation and Feasibility
Study (RI/FS) on the property. Depending on the EPAs course of action,
the RI/FS could take up to two years to complete. Future clean-up costs
cannot be estimated at this time. (See Note 4 to the Financial Statements
 Contingencies  Contaminated Site Cleanup.)
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. |  | In the Matter of CP&L Holdings, Inc. On Behalf of its Public Utility
Subsidiaries and Florida Progress Corporation On Behalf of Its Public
Utility Subsidiaries, Federal Energy Regulatory Commission Docket Nos.
EC00-55-000 and ER00-1520-000.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Tampa Electric Company (TECO) has filed a request with FERC asking that
it clarify, or in the alternative, grant rehearing of its July 12 Order
that approved the combination between the Company and CP&L Energy. The
request seeks two new ordering paragraphs. The first paragraph would
require the companies to make a filing by October 15, 2000 for an RTO that
is in compliance with FERC Order 2000, and that the combination cannot be
consummated until the Commission issues an order that the filing is in
compliance with Order 2000. The second paragraph would prohibit Florida
Power from augmenting its uncommitted generating capacity for five years,
other than to serve native load customers or existing firm wholesale
transactions. The Company believes that there is no merit to either
request, and that issues relating to RTO compliance with FERC Order 2000
belong in the FERC docket that will be opened when the Florida RTO files
for FERC approval.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Under the Federal Power Act, requests for rehearing are deemed to have
been denied if they are not acted upon within 30 days. FERC may issue an
order within the 30 day time period granting or denying the request in
whole or in part, or issue a tolling order granting the rehearing solely
for the purposes of reconsideration. Rehearing requests are sometimes
tolled to allow FERC additional time in which to rule. If a rehearing
request is tolled, FERC rules do not require it to rule on the merits of
the request within any time period. The Federal Power Act provides,
however, that requests for rehearing do not operate as a stay of a FERC
order unless otherwise ordered by FERC. TECO has not sought a stay of
FERCs July 12 order. In the absence of a stay or modification of the
July 12 order, the request filed by TECO does not affect the authorization
previously granted by FERC. (See Part I, Item 2, Managements Discussion
& Analysis  Other  Combination with CP&L Energy.)
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23



---



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits:

|       |  |                                                                                         |  |          |  |        
|------ |  | --------------------------------------------------------------------------------------- |  | -------- |  | -------
|       |  |                                                                                         |  | Florida  |  | Florida
|Number |  | Exhibit                                                                                 |  | Progress |  | Power  
|       |  |                                                                                         |  |          |  |        
|3.     |  | Bylaws of Florida Progress, as amended July 10, 2000.                                   |  | X       
|      
|      
|      
|      
|12     |  | Statement Regarding Computation of Ratio of Earnings
to Fixed Charges for Florida Power |  |          |  | X      
|      
|      
|      
|      
|27.(a) |  | Florida Progress Financial Data Schedule                                                |  | X       
|      
|      
|      
|      
|27.(b) |  | Florida Power Financial Data Schedule (for SEC use only)                                |  |          |  | X      
|      
|      
|      
|      
|      
|X  =   |  | Exhibit is filed for that respective company                                           

(b) Reports on form 8-K:



| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | During the second quarter of 2000, Florida Progress and Florida Power filed
the following combined reports on Form 8-K:



| |  | Form 8-K dated April 27, 2000, reporting under Item 5 Other Events
Florida Progress and Florida Powers first quarter 2000 earnings.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | In addition, Florida Progress and Florida Power filed the following
combined reports on Form 8-K subsequent to the second quarter 2000:



| |  | Form 8-K dated (date of earliest event reported) July 7, 2000, as filed
with the SEC on July 7, 2000, reporting under Item 5 Other Events
Florida Progress expected second quarter results.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Form 8-K dated (date of earliest event reported) July 11, 2000, as
filed with the SEC on July 11, 2000, reporting under Item 5 Other
Events the opening of a new Florida Public Service Commission Docket
to review Florida Powers earnings, including the effects of the
business combination between Florida Progress and CP&L Energy.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Form 8-K dated (date of earliest event reported) July 12, 2000, as
filed with the SEC on July 14, 2000, reporting under Item 5 Other
Events the receipt of the approval of the Federal Energy Regulatory
Commission, and the expiration of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act, in connection with the
pending business combination transaction between Florida Progress and
CP&L Energy.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Form 8-K dated August 1, 2000, reporting under Item 5 Other Events
Florida Progress and Florida Powers second quarter 2000 earnings.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------

24



---



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|      |  |  |                 |  |  |                                                                                                                                    
|----- |  |  | --------------- |  |  | -----------------------------------------------------------------------------------------------------------------------------------
|      |  |  |                 |  |  | FLORIDA PROGRESS CORPORATION                                                                                                       
|     
|Date: |  |  | August 11, 2000 |  |  | By:  /s/ John Scardino, Jr.
______________________________
John Scardino, Jr.
Vice President and Controller                        
|     
|Date: |  |  | August 11, 2000 |  |  | By:  /s/ Edward W. Moneypenny
______________________________
Edward W. Moneypenny
Senior Vice President and
Chief Financial Officer

25



---



Exhibit Index

|       |  |                                                                                          |  |          |  |        
|------ |  | ---------------------------------------------------------------------------------------- |  | -------- |  | -------
|       |  |                                                                                          |  | Florida  |  | Florida
|Number |  | Exhibit                                                                                  |  | Progress |  | Power  
|       |  |                                                                                          |  |          |  |        
|3.     |  | Bylaws of Florida Progress Corporation
as amended July 10, 2000                          |  | X       
|      
|      
|      
|      
|12     |  | Statement Regarding computation of Ratio
of Earnings to Fixed Charges for Florida
Power. |  |          |  | X      
|      
|      
|      
|      
|27.(a) |  | Florida Progress Financial Data Schedule                                                 |  | X       
|      
|      
|      
|      
|27.(b) |  | Florida Power Financial Data Schedule                                                    |  |          |  | X      
|      
|      
|      
|      
|      
|X  =   |  | Exhibit is filed for that respective company.                                           

26