-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, m6hI6hS3wSnNK5tbEH6lvBvyCrhNFZJ4h1Py4+LR1QQ64GWnJT6TOHbXA6um0pIX 29o+1IWi+GbBl3MI3aIeJQ== 0000037637-95-000001.txt : 19950424 0000037637-95-000001.hdr.sgml : 19950424 ACCESSION NUMBER: 0000037637-95-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950420 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950421 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLORIDA PROGRESS CORP CENTRAL INDEX KEY: 0000357261 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 592147112 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08349 FILM NUMBER: 95530396 BUSINESS ADDRESS: STREET 1: P O BOX 33042 CITY: ST PETERSBURG STATE: FL ZIP: 33733 BUSINESS PHONE: 8138246400 MAIL ADDRESS: STREET 1: PO BOX 14042 CITY: ST PETERSBURG STATE: FL ZIP: 33733 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLORIDA POWER CORP CENTRAL INDEX KEY: 0000037637 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 590247770 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03274 FILM NUMBER: 95530397 BUSINESS ADDRESS: STREET 1: P.O. BOX 14042 CITY: ST PETERSBURG STATE: FL ZIP: 33716 BUSINESS PHONE: 8138665151 MAIL ADDRESS: STREET 1: P.O. BOX 14042 CITY: ST. PETERSBURG STATE: FL ZIP: 33716 8-K 1 FLORIDA PROGRESS/FLORIDA POWER 04/20/95 FORM 8-K As filed with the Securities and Exchange Commission on April 21, 1995 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _____________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 20, 1995
Exact name of Registrant as Commission specified in its charter, address State of I.R.S. Employer File No. of principal executive offices, telephone Incorporation Identification No. 1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112 One Progress Plaza St. Petersburg, Florida 33701 Telephone (813) 824-6400 1-3274 FLORIDA POWER CORPORATION Florida 59-0247770 3201 34th Street South St. Petersburg, Florida 33711 Telephone (813) 866-5151
The address of neither registrant has changed since the last report. This combined Form 8-K represents separate filings by Florida Progress Corporation and Florida Power Corporation. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Florida Power makes no representations as to the information relating to Florida Progress' diversified operations. Item 5. Other Events In light of ongoing securities offerings by Florida Progress Corporation ("Florida Progress") and its subsidiaries, including Florida Power Corporation ("Florida Power") and Progress Capital Holdings, Inc., the following information is being presented pending distribution of the combined Florida Progress and Florida Power Quarterly Report on Form 10-Q for the quarter ended March 31, 1995: Florida Progress issued a news release dated April 20, 1995 and a related Investor Information report of even date therewith reporting first quarter 1995 earnings. Copies of the news release and report are being filed herewith as Exhibits 99.(a) and 99.(b), respectively. Item 7. Financial Statements and Exhibits (c) Exhibits: Exhibit Number (by reference to Item 601 of Regulation S-K) Description of Exhibit 99.(a) Florida Progress Corporation News Release dated April 20, 1995 regarding first quarter earnings. 99.(b) Florida Progress Corporation Investor Information Report dated April 20, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FLORIDA PROGRESS CORPORATION FLORIDA POWER CORPORATION /s/ James V. Smallwood By:____________________________ James V. Smallwood Treasurer of each Registrant Date: April 20, 1995 EXHIBIT INDEX Exhibit No. Description of Exhibit 99.(a) Florida Progress Corporation News Release dated April 20, 1995 regarding first quarter earnings. 99.(b) Florida Progress Corporation Investor Information Report dated April 20, 1995. EX-99.(A) 2 EX-99.(A) FLORIDA PROGRESS/POWER 04/20/95 FORM 8-K EXHIBIT 99.(a) News Release Florida Progress Corporation One Progress Plaza St. Petersburg, Florida 33701 Contact: Karen Raihill - (813) 866-5023 Florida Progress Corporation reports higher first-quarter earnings ST. PETERSBURG, Fla. (April 20, 1995) -- Florida Progress Corporation, parent of St. Petersburg-based Florida Power Corporation, today reported first-quarter earnings of $46.6 million, or 49 cents per share, compared with $36.5 million, or 41 cents a share, earned a year ago. Revenues for the quarter totaled $703.2 million, compared with $639.2 million for the same three-month period in 1994. Prior-year amounts have been restated to include the 1994 activity for the acquisition of FM Industries, Inc. Florida Power, the largest subsidiary of Florida Progress, earned $40.8 million, or 43 cents per share, on revenues of $515.9 million in this year's first quarter, compared with earnings of $31.8 million, or 36 cents a share, on revenues of $483.5 million for the same three-month period a year ago. Retail kilowatt-hour sales at Florida Power increased by 4.1 percent in the first quarter of 1995, compared with the prior-year quarter. Customer growth of about 2 percent and the stronger economy contributed to the higher energy sales. Utility earnings improved this year because, a year ago, Florida Power reduced earnings by $7.9 million for costs associated with a voluntary early retirement program. In addition, the impact of companywide cost-reduction efforts has helped to offset higher expenses for insurance, nuclear decommissioning and depreciation during the quarter. Diversified earnings were $5.8 million, or 6 cents per share, in the quarter compared with the $4.7 million, or 5 cents a share, earned last year. Earnings from Electric Fuels were up over the same period in 1994, largely because of improved results from its inland marine and coal-mining operations. Florida Progress (NYSE: FPC) is a diversified utility holding company with assets of $5.7 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with more than 1.2 million customers. Diversified operations include coal mining and transportation, life insurance, real estate and lending and leasing. - - more - - -Page 2- Florida Progress Corporation News Release - Florida Progress reports higher first-quarter 1995 earnings Three Months Ended Twelve Months Ended March 31 March 31 1995 1994 1995 1994 ------------ ------------ -------------- -------------- Revenues $703,200,000 $639,200,000 $2,835,500,000 $2,594,900,000 Net Income $ 46,600,000 $ 36,500,000 $ 222,100,000 $ 198,700,000 ============ ============ ============== ============== Earnings Per Share (EPS): Florida Power Corporation $ .43 $ .36 $ 2.12 $ 2.04 Diversified Operations .06 .05 .23 .19 ------ ------ ------ ------ Consolidated $ .49 $ .41 $ 2.35 $ 2.23 ====== ====== ====== ====== Average Common Shares Outstanding 95,262,137 90,093,052 94,268,564 88,939,886 EX-99.(B) 3 EX-99.(B) FLORIDA PROGRESS/POWER 04/20/95 FORM 8-K EXHIBIT 99.(b) FLORIDA PROGRESS CORPORATION INVESTOR INFORMATION Analysts' Contacts: Mark A. Myers, Manager, Investor Relations (813)866-4245 John A. Serba, Senior Investor Communications Analyst (813)866-4247 April 20, 1995 Florida Progress Corporation reports higher first-quarter earnings Florida Progress Corporation, parent of St. Petersburg-based Florida Power Corporation, today reported first-quarter earnings of $46.6 million, or 49 cents per share, compared with $36.5 million, or 41 cents a share, earned a year ago. Revenues for the quarter totaled $703.2 million, compared with $639.2 million for the same three-month period in 1994. Prior-year amounts have been restated to include the 1994 activity for FM Industries, Inc. to reflect the pooling of interests accounting. Significant items influencing the increase in first-quarter operating results: o Higher energy sales at Florida Power in 1995 due to customer growth and a stronger economy. o Recognition of early retirement costs at Florida Power in 1994. o Impact of cost-cutting measures implemented by the utility. o Stronger results this year from Electric Fuels Corporation, Florida Progress' coal-mining and transportation subsidiary. Florida Power, the largest subsidiary of Florida Progress, earned $40.8 million, or 43 cents per share, on revenues of $515.9 million in this year's first quarter, compared with earnings of $31.8 million, or 36 cents a share, on revenues of $483.5 million for the same three-month period a year ago. Retail kilowatt-hour sales at Florida Power increased by 4.1 percent in the first quarter of 1995, compared with the prior-year quarter. Customer growth of about 2 percent and the stronger economy contributed to the higher energy sales. Utility earnings improved this year because, a year ago, Florida Power reduced earnings by $7.9 million for costs associated with a voluntary early retirement program. In addition, the impact of companywide cost-reduction efforts has helped to offset higher expenses for insurance, nuclear decommissioning and depreciation during the quarter. - - more - - -Page 2- Florida Progress Corporation Investor Information - Florida Progress reports higher first-quarter 1995 earnings In January 1995, Florida Power began a three-year test of revenue decoupling for its residential customers, in effect separating, or "decoupling," revenues from energy sales. Abnormal weather-related sales fluctuations will not affect earnings from residential sales because decoupling is designed to reconcile, or "true up," the revenues to an authorized target level. Revenue decoupling did not have a material impact on the company's first-quarter earnings. Diversified earnings were $5.8 million, or 6 cents per share, for the first quarter of 1995, compared with the $4.7 million, or 5 cents a share, earned last year. Electric Fuels' earnings were up over the same three-month period in 1994, largely because of improved results at its inland marine division due to increased demand and higher rates for transporting barge freight. In addition, earnings from Electric Fuels' coal-mining operations improved this year because, a year ago, severe winter weather negatively impacted operating results. Florida Progress (NYSE: FPC) is a diversified utility holding company with assets of $5.7 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with more than 1.2 million customers. Diversified operations include coal mining and transportation, life insurance, real estate and lending and leasing. - - more - FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 3 (In millions, except per share amounts) Three Months Ended Twelve Months Ended March 31, March 31, ------------------ ------------------ (UNAUDITED) 1995 1994 1995 1994 -------- -------- -------- -------- REVENUES: Electric utility $515.9 $483.5 $2,112.9 $2,034.1 Diversified 187.3 155.7 722.6 560.8 --------- --------- --------- --------- 703.2 639.2 2,835.5 2,594.9 EXPENSES: --------- --------- --------- --------- Electric utility: Fuel used in generation 78.6 90.7 419.8 445.1 Purchased power 103.3 56.3 341.6 236.0 Deferred fuel 7.4 15.2 (9.3) 18.0 Other operation 87.4 108.1 368.1 401.7 --------- --------- --------- --------- Operation 276.7 270.3 1,120.2 1,100.8 Maintenance 33.0 30.2 125.7 133.9 Depreciation 70.7 64.5 267.7 247.1 Taxes other than income taxes 42.9 40.2 165.5 157.2 --------- --------- --------- --------- 423.3 405.2 1,679.1 1,639.0 --------- --------- --------- --------- Diversified: Cost of sales 152.9 129.3 594.8 452.8 Other 16.7 13.4 66.6 54.0 --------- --------- --------- --------- 169.6 142.7 661.4 506.8 --------- --------- --------- --------- INCOME FROM OPERATIONS 110.3 91.3 495.0 449.1 --------- --------- --------- --------- INTEREST EXPENSE AND OTHER: Interest expense 36.6 36.2 145.2 142.3 Allowance for funds used during construction (2.2) (2.6) (10.5) (13.5) Preferred dividend requirements of Florida Power 2.5 2.5 10.1 12.0 Other expense (income), net 0.8 0.6 10.5 (1.9) --------- --------- --------- --------- 37.7 36.7 155.3 138.9 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES 72.6 54.6 339.7 310.2 Income Taxes 26.0 18.1 117.6 111.5 --------- --------- --------- --------- NET INCOME $46.6 $36.5 $222.1 $198.7 ========= ========= ========= ========= AVERAGE SHARES OF COMMON STOCK OUTSTANDING 95.3 90.1 94.3 88.9 ========= ========= ========= ========= EARNINGS PER AVERAGE COMMON SHARE $0.49 $0.41 $2.35 $2.23 ========= ========= ========= ========= Regarding these financial statements: Prior year amounts have been restated to include the 1994 activity for FM Industries to reflect the pooling of interests accounting. These are interim statements. Reference should be made to Florida Progress Corporation's 1994 Annual Report to shareholders. Neither this report nor any statement contained herein is furnished in connection with the offering of securities or for the purpose of promoting or influencing the sale or purchase of securities. FLORIDA PROGRESS CORPORATION CONSOLIDATED BALANCE SHEETS Page 4 (In millions) March 31, ------------------------ (UNAUDITED) 1995 1994 ----------- ----------- ASSETS PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held $5,690.7 $5,411.1 for future use Less - Accumulated depreciation 2,042.4 1,898.6 Accumulated decommissioning for nuclear plant 141.3 120.6 Accumulated dismantlement for fossil plants 91.9 74.5 ---------- ---------- 3,415.1 3,317.4 Construction work in progress 190.7 249.6 Nuclear fuel, net of amortization of $329.3 in 1995 and $307.7 in 1994 45.6 59.6 ---------- ---------- Net electric utility plant 3,651.4 3,626.6 Other property, net of depreciation of $169.9 in 1995 and $149.9 in 1994 425.6 393.8 ---------- ---------- 4,077.0 4,020.4 ---------- ---------- CURRENT ASSETS: Cash and equivalents 21.9 14.8 Accounts receivable, net 250.5 228.0 Current portion of leases and loans receivable 15.2 34.1 Inventories, primarily at average cost: Fuel 82.1 78.7 Utility materials and supplies 108.9 115.7 Diversified materials 68.7 52.9 Other 45.9 42.5 ---------- ---------- 593.2 566.7 ---------- ---------- OTHER ASSETS: Investments: Leases and loans receivable, net 426.8 475.6 Marketable securities 149.7 140.8 Nuclear plant decommissioning fund 131.7 114.0 Joint ventures and partnerships 74.8 87.0 Deferred insurance policy acquisition costs 97.2 85.1 Other 156.5 152.4 ---------- ---------- 1,036.7 1,054.9 ---------- ---------- $5,706.9 $5,642.0 ========== ========== CAPITAL AND LIABILITIES CAPITAL: Common stock equity $1,995.9 $1,831.8 Cumulative preferred stock of Florida Power 143.5 148.5 Long-term debt 1,842.2 1,894.4 ---------- ---------- 3,981.6 3,874.7 ---------- ---------- CURRENT LIABILITIES: Accounts payable 146.0 113.4 Customers' deposits 77.3 72.8 Income taxes payable 44.5 43.6 Accrued other taxes 30.0 26.8 Accrued interest 46.8 45.4 Overrecovery of fuel costs 2.9 0.8 Other 62.1 68.1 ---------- ---------- 409.6 370.9 Notes payable - 90.7 Current portion of long-term debt 46.8 67.6 ---------- ---------- 456.4 529.2 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 741.1 745.7 Unamortized investment tax credits 107.9 117.2 Insurance policy benefit reserves 233.3 196.3 Other postretirement benefit costs 72.1 53.0 Other 114.5 125.9 ---------- ---------- 1,268.9 1,238.1 ---------- ---------- $5,706.9 $5,642.0 ========== ==========
FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Page 5 (In millions) Three Months Ended Twelve Months Ended March 31, March 31, ------------------ ------------------ (UNAUDITED) 1995 1994 1995 1994 -------- -------- -------- -------- OPERATING ACTIVITIES: Net Income $46.6 $36.5 $222.1 $198.7 Adjustments for noncash items: Depreciation and amortization 86.7 81.5 326.9 310.2 Deferred income taxes and investment tax credits, net (13.0) (17.8) (27.5) (69.5) Increase in accrued other postretirement benefit costs 4.3 5.4 19.3 24.8 Net change in deferred insurance policy acquisition costs (5.3) (3.6) (12.1) (13.5) Net change in insurance policy benefit reserves 10.8 9.8 37.0 30.1 Changes in working capital, net of effects from acquisition or sale of businesses: Accounts receivable 11.7 17.8 (23.5) (28.3) Inventories (7.3) (10.2) (7.2) (18.1) Overrecovery of fuel costs 4.7 7.9 2.1 20.8 Accounts payable (1.2) (38.1) 32.7 (6.7) Income taxes payable 32.3 1.1 1.6 21.0 Accrued other taxes 15.0 15.9 2.9 2.6 Other (8.3) 2.2 3.8 16.6 Other operating activities 8.9 22.5 9.4 29.1 -------- -------- -------- -------- 185.9 130.9 587.5 517.8 -------- -------- -------- -------- INVESTING ACTIVITIES: Property additions (including allowance for borrowed funds used during construction) (72.7) (62.6) (378.2) (439.3) Proceeds from sale of properties and businesses 3.6 4.4 15.5 35.4 Purchase of leases, loans and securities (11.0) (37.7) (47.4) (146.0) Proceeds from sale or collection of leases, loans and securities 23.6 31.7 94.1 157.8 Acquisition of businesses - - (17.1) (80.5) Distributions from (investments in) joint ventures and partnerships, net (0.8) (0.2) (1.9) 1.8 Other investing activities (2.7) (2.9) (10.6) (13.5) -------- -------- -------- -------- (60.0) (67.3) (345.6) (484.3) -------- -------- -------- -------- FINANCING ACTIVITIES: Issuance of long-term debt - 99.3 4.4 336.6 Repayment of long-term debt (10.0) (14.7) (82.0) (307.5) Increase (decrease) in commercial paper with long-term support (14.4) (71.7) (3.9) 39.3 Redemption of preferred stock - - (5.0) (35.3) Sale of common stock 9.4 13.2 134.2 57.2 Dividends paid on common stock (48.1) (44.3) (189.7) (174.1) Increase (decrease) in short-term debt (55.3) (39.0) (91.9) 61.0 Other financing activities - (0.7) (0.9) (2.4) -------- -------- -------- -------- (118.4) (57.9) (234.8) (25.2) -------- -------- -------- -------- NET INCREASE IN CASH AND EQUIVALENTS 7.5 5.7 7.1 8.3 Beginning cash and equivalents 14.4 9.1 14.8 6.5 -------- -------- -------- -------- ENDING CASH AND EQUIVALENTS $21.9 $14.8 $21.9 $14.8 ========= ========= ========= ========= /TABLE
Florida Progress Corporation Selected Financial Information (Unaudited) Page 6 Three Months Ended Percent Twelve Months Ended Percent March 31, Positive March 31, Positive 1995 1994 (Negative) 1995 1994 (Negative) --------- --------- --------- --------- --------- --------- Earnings Per Share: Florida Power Corporation $0.43 $0.36 19.4 $2.12 $2.04 3.9 --------- --------- --------- --------- Electric Fuels Corporation 0.06 0.04 50.0 0.27 0.19 42.1 Mid-Continent Life Insurance Co. 0.02 0.03 (33.3) 0.08 0.10 (20.0) Progress Credit Corporation: Lending and Leasing 0.01 0.01 - 0.01 0.02 (50.0) Real estate (0.02) (0.02) - (0.07) (0.08) 12.5 Corporate and other (0.01) (0.01) - (0.06) (0.04) (50.0) --------- --------- --------- --------- Diversified 0.06 0.05 20.0 0.23 0.19 21.1 --------- --------- --------- --------- Consolidated $0.49 $0.41 19.5 $2.35 $2.23 5.4 ========= ========= ========= ========= Avg. shares outstanding (millions) 95.3 90.1 5.8 94.3 88.9 6.1 Dividends per share $0.505 $0.495 2.0 $2.00 $1.96 2.0 Book value per share: Florida Power Corporation $17.55 $16.81 4.4 Consolidated $20.89 $20.26 3.1
March 31, March 31,1995 March 31,1994 1995 1994 Amount Percent Amount Percent --------- --------- ---------------------------------------- Equity investments (percent): Capitalization (in millions): Florida Power Corporation 84 84 Common stock $1,995.9 49.5 $1,831.8 45.4 Electric Fuels Corporation 9 8 Preferred stock 143.5 3.6 148.5 3.7 Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,842.2 45.7 1,894.4 47.0 Progress Credit Corporation 3 4 Short-term capital 46.8 1.2 158.3 3.9 --------- --------- ---------------------------------------- Total 100 100 Total $4,028.4 100.0 $4,033.0 100.0 ========= ========= ======================================== Note: Prior year amounts have been restated to include the 1994 activity for FM Industries to reflect the pooling of interests accounting.
Florida Power Corporation Selected Statistical Data (Unaudited) Page 7 (In millions, except billing degree days) Three Months Ended Twelve Months Ended March 31, Percent March 31, Percent 1995 1994 Change 1995 1994 Change ------- ------- ------- ------- ------- ------- Revenues: Residential $283.7 $267.5 6.1 $1,158.9 $1,109.9 4.4 Commercial 109.4 102.5 6.7 490.8 468.5 4.8 Industrial 43.1 39.7 8.6 176.5 166.3 6.1 Other retail sales 25.3 23.4 8.1 110.2 104.5 5.5 -------- -------- -------- -------- 461.5 433.1 6.6 1,936.4 1,849.2 4.7 Sales for resale 26.0 30.9 (15.9) 123.8 129.6 (4.5) -------- -------- -------- -------- 487.5 464.0 5.1 2,060.2 1,978.8 4.1 Other electric revenues 25.8 12.3 109.8 64.1 58.0 10.5 Deferred fuel 2.6 7.2 - (11.4) (2.7) - -------- -------- -------- -------- Total $515.9 $483.5 6.7 $2,112.9 $2,034.1 3.9 ======== ======== ======== ======== Kilowatt-hour sales billed: Residential 3,320.4 3,237.7 2.6 13,946.1 13,703.5 1.8 Commercial 1,770.2 1,723.7 2.7 8,298.6 7,944.3 4.5 Industrial 860.5 830.2 3.6 3,609.9 3,429.7 5.3 Other retail sales 443.1 426.2 4.0 1,997.0 1,908.5 4.6 -------- -------- -------- --------- 6,394.2 6,217.8 2.8 27,851.6 26,986.0 3.2 Sales for resale 442.3 514.8 (14.1) 2,266.9 2,252.5 0.6 -------- --------- --------- --------- Total electric sales 6,836.5 6,732.6 1.5 30,118.5 29,238.5 3.0 ======= ======== ======== ======== System Requirements (KWH) 7,213 6,874 4.9 31,490 30,646 2.8 Retail KWH Sales (Billed & Unbilled) 6,415 6,160 4.1 27,853 27,095 2.8 Billing Degree Days: Cooling - - - 3,346 3,386 (1.2) Heating 463 453 2.2 525 627 (16.3) Note: Total revenues include billed revenues and unbilled revenues that are accrued for accounting purposes. Statistics for total kilowatt-hour sales include only billed kilowatt-hour sales. Due to the conversion to a new customer service system, the first quarter of 1995 billed kilowatt-hour sales do not include a part of one billing cycle that normally would be part of the billed sales activity. These revenues will be billed during the second quarter of 1995. Because billed revenue is adjusted through an unbilled revenue calculation, earnings were not adversely affected by the timing of the billings. The statistics for system requirements is based on total system generation, so it includes billed and unbilled sales and is a better measure of total sales growth. Beginning in 1995, Florida Power was ordered by state regulators to conduct a three-year test for residential revenue decoupling. Under the plan, abnormal weather variances will no longer impact earnings with respect to residential revenues.
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