-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AzIS8zrRGckygzYkh+N+zzwtUHAs10EPT7JHeDYaY02xKkgmYGgzkSlcAmqv17mM P9hkX59zhv2CRLJ+QJjk6Q== 0001005477-00-002938.txt : 20000407 0001005477-00-002938.hdr.sgml : 20000407 ACCESSION NUMBER: 0001005477-00-002938 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000406 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-03382 FILM NUMBER: 594755 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 425 1 425 Filed by Carolina Power & Light Company Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Carolina Power & Light Company Commission File No. 001-03382 Edward Jones Mid-Cap Utility Conference New York April 5, 2000 Carolina Power & Light Update Remarks by: Mark F. Mulhern Vice President & Treasurer [LOGO OF CP&L] Safe Harbor Statement The matters discussed in this presentation that are not historical facts are forward-looking statements and, accordingly, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially form those expressed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made. Questions and inquiries should be directed to Bob Drennan, Manager of Investor Relations (919) 546-7474 or Karen Ralph, Investor Relations Analyst (919) 546-6931. We invite you to visit our website at www.cplc.com for a variety of information about Carolina Power & Light Company and its businesses. CP&L update ================================================================================ o Florida Progress Acquisition o Generation plans o Technology subsidiaries o Earnings & dividends [LOGO OF CP&L] Combined-- A super regional powerhouse ================================================================================ Highlights o $16 billion total assets o 2.5 million customers o 18,564 MWs power generation [MAP DEPICTING CP&L AND FPC'S REGIONAL PRESENCE IN THE STATES OF NORTH CAROLINA, SOUTH CAROLINA, GEORGIA, AND FLORIDA] [LOGO OF CP&L] A strategically sound transaction ================================================================================ o Two strong companies o High-growth region o Significant scale o Greater access to competitive markets o Constructive regulatory environments [LOGO OF CP&L] Regulatory update ================================================================================ CLOSING 1st Quarter 2000 2nd Quarter 2000 3rd Quarter 2000 Fall 2000 - -------------------------------------------------------------------------------- ------------- ---------------- --------------- FERC Filing DOJ Filing NCUC Hearing ------------- ---------------- --------------- ------------- ---------------- --------------- NRC Filing Proxy Mailed NCUC Approval ------------- to Shareholders --------------- --------------- ------------- ---------------- --------------- NCUC Merger Shareholder NRC Approval Application Vote --------------- Filing ---------------- ------------- --------------- SEC Approval ------------- --------------- SEC Filing --------------- ------------- FERC Approval --------------- [LOGO OF CP&L] Florida Progress Acquisition [SLIDE DEPICTING A PAGE OF CP&L'S INTERNET WEBSITE SHOWING THE STATUS OF REGULATORY APPROVAL IN CONNECTION WITH THE FLORIDA PROGRESS ACQUISITION] www.cplc.com Synthetic fuels ================================================================================ Net after-tax flows ($ millions) [LINE GRAPH DEMONSTRATING THAT HOLDERS OF CONTINGENT VALUE OBLIGATIONS WILL BE ENTITLED TO 50% OF THE NET AFTER-TAX CASH FLOW IN EXCESS OF $80 MILLION PER YEAR FOR EACH OF THE YEARS 2001 THROUGH 2007 AND THAT ANNUAL NET AFTER-TAX CASH FLOW COULD REACH AN AVERAGE OF $140 MILLION PER YEAR OVER THE YEARS IN WHICH THE RIGHTS TO THOSE PAYMENTS CAN ACCRUE TO THE CONTINGENT VALUE OBLIGATIONS] [LOGO OF CP&L] CP&L update ================================================================================ o Florida Progress Acquisition o Generation plans o Technology subsidiaries o Earnings & dividends [LOGO OF CP&L] Generation additions ================================================================================ Under construction or announced In-service date MW -------------------------------------------- 1999 325 -------------------------------------------- 2000 1,286 -------------------------------------------- 2001 1,239 -------------------------------------------- 2002 625 -------------------------------------------- Total 3,475 [LOGO OF CP&L] Develop pipeline infrastructure ================================================================================ [MAP OF THE STATES OF NORTH CAROLINA AND SOUTH CAROLINA SHOWING THE LOCATIONS OF (i) EXISTING INTERSTATE PIPELINES, (ii) EXISTING NCNG PIPELINES AND (iii) ANNOUNCED/NEW PIPELINE ROUTING] [LOGO OF CP&L] CP&L update ================================================================================ o Florida Progress Acquisition o Generation plans o Technology subsidiaries o Earnings & dividends [LOGO OF CP&L] Increasing value ================================================================================ [LOGO OF SRS] [LOGO OF INTERPATH COMMUNICTIONS INC] www.srs.net www.interpath.com [LOGO OF STATUSGO.COM/A DIVISION OF CP&L] www.statusgo.com [LOGO OF CP&L] Expanding network reach ================================================================================ [MAP SHOWING INTERPATH'S FIBER [MAP SHOWING OVERALL NETWORK AND POINTS OF PRESENCE COMPANY AND VISION] IN THE STATES OF MARYLAND, VIRGINIA, NORTH CAROLINA, SOUTH CAROLINA AND GEORGIA AND THE DISTRICT OF COLUMBIA] [LOGO OF CP&L] CP&L update ================================================================================ o Florida Progress acquisition o Generation plans o Technology subsidiaries o Earnings & dividends [LOGO OF CP&L] Earnings update ================================================================================ 7% long-term CAGR [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE SLIDE.] 2000 2001 ---- ---- $3.00 $3.40 [LOGO OF CP&L] Dividend growth ================================================================================ 5-Year CAGR for Dividends CP&L 3.3% Electric Industry (0.5)% [LINE CHART DEPICTING DIVIDENDS PAID BY CP&L AND THE ELECTRIC INDUSTRY WITH CP&L'S DIVIDEND INCREASING FROM $1.70 IN 1994 TO $2.00 IN 1999 AND THE DIVIDENDS PAID BY THE ELECTRIC INDUSTRY DECREASING FROM $1.60 IN 1994 TO $1.56 IN 1999] [LOGO OF CP&L] A strong southeastern focus ================================================================================ ------------------------------------------------------------ FOCUS o Merger o Expansion o Generation ------------------------------------------------------------ RISK o Southeast o Rate freeze o Domestic ------------------------------------------------------------ DIVIDENDS o Current yield of 6.5 percent ------------------------------------------------------------ OPTIONALITY o Technology o Electric fuels investments businesses ------------------------------------------------------------ [LOGO OF CP&L] - -------------------------------------------------------------------------------- Merger update - -------------------------------------------------------------------------------- Overview of the proposed transaction (Implied value of consideration per FPC share) Effect of Collar based on CP&L Stock Price [Graph showing the effect of the collar on CP&L's stock price and the implied value of consideration to be received by Florida Program shareholders]
- ------------------------------------------------------------------------------------------------------------- Illustrations of Exchange Ratio Application and the Value of Cash and Stock Consideration to be Received Total Value of Cash and Stock Consideration to be Number of $ Value of Cash Payment Cash Received per Average CP&L Whole CP&L CP&L Energy for Consideration 100 Florida Energy Closing Exchange Energy Shares Shares to be Fractional to be Progress Price Ratio to be Received Received Share Received Shares - ----- ----- -------------- -------- ----- -------- ------ $27.00 1.4543 50 $1,350.00 $24.31 $3,510.00 $4,884.31 $28.00 1.4543 50 $1,400.00 $25.21 $3,510.00 $4,935.21 $29.00 1.4543 50 $1,450.00 $26.11 $3,510.00 $4,986.11 $30.00 1.4543 50 $1,500.00 $27.02 $3,510.00 $5,037.02 $33.00 1.4543 50 $1,650.00 $29.72 $3,510.00 $5,189.72 $35.00 1.4543 50 $1,750.00 $31.52 $3,510.00 $5,291.52 $37.13 1.4543 50 $1,856.50 $33.44 $3,510.00 $5,399.94 $39.00 1.3846 48 $1,872.00 $17.98 $3,510.00 $5,399.98 $41.00 1.3171 46 $1,886.00 $ 4.04 $3,510.00 $5,400.04 $42.00 1.2857 44 $1,848.00 $41.98 $3,510.00 $5,399.98 $44.00 1.2273 42 $1,848.00 $42.04 $3,510.00 $5,400.04 $45.39 1.1897 41 $1,860.99 $29.03 $3,510.00 $5,400.02 $48.00 1.1897 41 $1,968.00 $30.70 $3,510.00 $5,508.70 $50.00 1.1897 41 $2,050.00 $31.98 $3,510.00 $5,591.98 - -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Merger update - -------------------------------------------------------------------------------- CP&L/FPC merger timeline
- ---------------------------------------------------------------------------------------------------- Filing/Application Date Filed Planned Filing Order Received Order Expected Date - ---------------------------------------------------------------------------------------------------- Holding Company - ---------------------------------------------------------------------------------------------------- NRC 9/15/99 12/31/99 - ---------------------------------------------------------------------------------------------------- NCUC 10/15/99 2nd Quarter - ---------------------------------------------------------------------------------------------------- SEC 10/18/99 2nd Quarter - ---------------------------------------------------------------------------------------------------- SCPSC 10/19/99 3/06/00 - ---------------------------------------------------------------------------------------------------- FCC 10/21/99 02/09/00 - ---------------------------------------------------------------------------------------------------- FERC 10/26/99 12/23/99 - ---------------------------------------------------------------------------------------------------- Merger - ---------------------------------------------------------------------------------------------------- NRC-Transfer of Control 1/31/99 3rd Quarter - ---------------------------------------------------------------------------------------------------- NCUC-Merger Approval 2/03/00 3rd Quarter - ---------------------------------------------------------------------------------------------------- FERC-Merger Approval 02/03/00 2nd Quarter - ---------------------------------------------------------------------------------------------------- SEC-Merger Approval 03/14/00 3rd Quarter - ---------------------------------------------------------------------------------------------------- FCC-Transfer of Licenses 1st Quarter 2nd Quarter - ---------------------------------------------------------------------------------------------------- SEC-Proxy mailed to shareholders 2nd Quarter NA - ---------------------------------------------------------------------------------------------------- FTC/DOJ (HSR) 2nd Quarter 3rd Quarter - ----------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Merger Update - -------------------------------------------------------------------------------- ================================================================================ SUMMARY OF THE FEDERAL ENERGY REGULATORY COMMISSION APPLICATION CPL/FPC Proposed Business Combination Docket Nos. EC00-55 Date Filed: February 3, 2000 Overall Request CP&L Holdings, Inc. and Florida Progress Corporation, on behalf of themselves and their subsidiaries (the "Applicants"), seek authorization and approval to merge those subsidiaries that are subject to the Federal Energy Regulatory Commission's ("FERC's") jurisdiction. The principal utilities joined through this merger are Carolina Power & Light Company ("CP&L"), which provides wholesale and retail electric service principally in the states of North Carolina and South Carolina, and Florida Power Corporation ("FPC"), which provides wholesale and retail electric service primarily in central and northern Florida. As a consequence of the merger, the Applicants will achieve greater efficiencies through economies of scale, derive advantages of geographic and customer diversity, and attain greater financial strength. Market Power The proposed merger poses no significant market power concerns. Based upon the FERC market power analysis, there are limited market power issues in CP&L and FPC markets resulting from the transaction. To resolve these issues, the Applicants commit to: 1. Sell 135 MW of generating capacity for a six year period. This sale of less than 1% of the companies' combined generation resources is intended to foreclose any questions related to the impact of the merger on wholesale competition. 2. File for FERC approval to establish or join Regional Transmission Organizations ("RTOs") in their respective regions no later than 90 days after completing the merger. (In its recent Order No. 2000, FERC encouraged all transmission-owning utilities to turn over operation of their transmission systems to RTOs.) Rates The Applicants commit to hold all wholesale requirements and transmission customers harmless from any adverse effect of the proposed transaction on the FERC jurisdictional rates. - -------------------------------------------------------------------------------- FERC APPLICATION TIMELINE February 3, 2000 Application filed April 3, 2000 Petitions to intervene due The Applicants have requested in their Application that the Commission authorize the proposed merger as expeditiously as possible and, in any event, no later than June 30, 2000 . Such a schedule is consistent with the FERC's Merger Policy Statement, which contemplates FERC action on merger applications within approximately five months of their filing. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Merger Update - -------------------------------------------------------------------------------- ================================================================================ Summary of the North Carolina Utility Commission Application CPL/FPC Proposed Business Combination Docket No. E-2, Sub 760 Date Filed: February 3, 2000 Overall Request CP&L Holdings, Inc. ("CP&L Holdings") seeks authorization to engage in a business combination transaction between CP&L Holdings and Florida Progress Corporation ("FPC") and in connection with that transaction, authorization to issue common stock without par value. CP&L Holdings is a corporation organized and existing under the laws of the State of North Carolina. As part of the merger, CP&L Holdings will create CP&L Services, Inc., a service company to provide certain administrative services to its electric utility subsidiaries and non-utility subsidiaries. G.S. 62-111 provides that all mergers or combinations affecting a public utility require commission approval. The statute further provides that the standard the commission shall use in determining whether to approve the merger is whether the merger is "justified by public convenience and necessity." - -------------------------------------------------------------------------------- NCUC Application Timeline February 3, 2000 Application filed March 17, 2000 Testimony filed June 28, 2000 Intervenor testimony due June 11, 2000 Rebuttal testimony due July 18, 2000 Hearings Fall 2000 Final order - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Energy supply - -------------------------------------------------------------------------------- Facilities - under construction or announced
- -------------------------------------------------------------------------------------------- Maximum Expected Dependable Plant Location Unit Number In-service Capacity (MW) - -------------------------------------------------------------------------------------------- Combustion turbines-gas Asheville Skyland, NC 4 2000 165 Wayne County Goldsboro, NC 1-4 2000 668 Monroe Monroe, GA 2 2001 160 Rowan County NC 1-3 2001 459 Richmond County NC 1-4 2001 620 Richmond County NC 5 2002 155 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- Combined cycle - gas Richmond County (1) NC Block 1 2002 470 - -------------------------------------------------------------------------------------------- Total facilities under construction or announced 2,697 - --------------------------------------------------------------------------------------------
(1) Two combustion turbines will be used as part of a combined cycle plant with the first steam unit scheduled to be placed in service in 2002. Currently pending NCUC approval. Purchases - under construction or announced
- ------------------------------------------------------------------------------------------------- Maximum Expected Dependable Plant Location Unit Number In-service Capacity (MW) - ------------------------------------------------------------------------------------------------- Combustion turbines - gas Broad River Cherokee County, SC 2000 453 Undesignated 2001 150 Undesignated 2002 150 - ------------------------------------------------------------------------------------------------- Total purchases under construction or announced 753 - -------------------------------------------------------------------------------------------------
Resource plan additions (MW's) - -------------------------------------------------------------------------------- 2000 2001 2002 --------------------------------------------------- System additions Load (1) 11,013 12,118 12,457 Additions 833 1,440-1,803 105-478 Reserves 10.5% 10%-13% 10%-13% Regional additionals 600-775 0-300 500-1,200 - -------------------------------------------------------------------------------- Total Additions 1,433 - 1,608 1,440 - 2,103 605 - 1,678 - -------------------------------------------------------------------------------- (1) System internal sales growth is forecasted to average approximately 2.8% per year. - -------------------------------------------------------------------------------- Cash flows - -------------------------------------------------------------------------------- ================================================================================
Actual Projected 2000-2002 Cash Flow ($ in millions) 1999 2000 2001 2002 Totals - --------------------------------------------------------------------------------------------------------------- Operating Activities Depreciation and amortization (1) 592 652 681 704 2,037 Deferred income taxes (32) (138) (79) (17) (234) Investment tax credits (10) (10) (10) (10) (30) Allowance for funds used during construction (21) (32) (38) (91) Earnings and other net changes 282 542 446 498 1,486 - --------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 832 1,025 1,006 1,137 3,168 - --------------------------------------------------------------------------------------------------------------- Investing Activities (2) Construction expenditures (3) (689) (851) (876) (912) (2,639) Nuclear fuel (76) (64) (94) (66) (224) Other (4) (237) (156) (289) (211) (656) - --------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (1,002) (1,071) (1,259) (1,189) (3,519) - --------------------------------------------------------------------------------------------------------------- Financing Activities Mandatory retirements (113) (201) (5) (251) (457) Other 332 171 258 303 732 - --------------------------------------------------------------------------------------------------------------- Net cash used in financing activities 219 (30) 253 52 275 - --------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Cash and Cash Equivalents 49 (76) (0) -- - --------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of year 31 80 4 4 - --------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year 80 4 4 4 - ---------------------------------------------------------------------------------------------------------------
(1) Projected depreciation and amortization amounts include accelarated amortizations of regulatory assets and accelarated depreciation of nuclear assets. (2) Power Agency is contributing its proportionate share of any additional construction costs on the jointly owned units. Construction expenditures, nuclear fuel expenditures and related AFUDC are not of Power Agency's share. (3) Construction expenditures related to Clean Air Act and NOXSIP call requirements will be approximately $311 million for the 2000-2002 period. (4) The Company has total projected cash requirements of approximately $565 million for the years 2000 through 2002 relating to expenditures in affordable housing and merchant generation projects. The Company's last general rate case was in 1988. No general rate cases are assumed during the forecast period. Actual results may vary significantly as a result of financial market conditions, regulatory actions and various other actions. [LOGO OF CP&L] In connection with the share exchange between CP&L Energy and Florida Progress, Carolina Power & Light and Florida Progress have filed with the Securities and Exchange Commission (the "SEC") a preliminary joint proxy statement/prospectus. CP&L Energy will file a Registration Statement on Form S-4 and Florida Progress will file a definitive proxy statement each of which will contain the definitive joint proxy statement/prospectus of CP&L Energy and Florida Progress in addition to other relevant documents concerning the share exchange with the SEC. We urge investors to read the definitive joint proxy statement/prospectus and any other relevant documents to be filed with the SEC because they contain important information. Investors will be able to obtain the documents free of charge at the SEC's web site, http://www.sec.gov. In addition, documents filed by Carolina Power & Light and CP&L Energy with the SEC can be obtained by contacting Carolina Power & Light and CP&L Energy at the following address and telephone number: Shareholder Relations, 411 Fayetteville Street, Raleigh, North Carolina 27601, telephone: (800) 662-7232. Documents filed with the SEC by Florida Progress can be obtained by contacting Florida Progress at the following address and telephone number: Investor Services, P.O. Box 14042 (BT11B), St. Petersburg, Florida 33733, telephone: (800) 937-2640. Read the definitive joint proxy statement/prospectus carefully before making a decision concerning the share exchange. CP&L Energy, its officers, directors, employees and agents may be soliciting proxies from CP&L Energy shareholders in connection with the share exchange. Information concerning the participants in the solicitation is set forth in the preliminary joint proxy statement/prospectus filed by Carolina Power & Light with the SEC on March 6, 2000. Florida Progress, its officers, directors, employees and agents may be soliciting proxies from Florida Progress shareholders in connection with the share exchange. Information concerning the participants in the solicitation is set forth in the preliminary joint proxy statement/prospectus filed by Florida Progress with the SEC on March 6, 2000. -----END PRIVACY-ENHANCED MESSAGE-----