-----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, M7B7zV7sxN0sbe9I9KhpsBLQ5vQDLeh1WYGMe8E89crr667svYiKi2/aA2w0x5N6 58KR094PU3MQ03pbVDZncA== 0000357261-97-000068.txt : 19970624 0000357261-97-000068.hdr.sgml : 19970624 ACCESSION NUMBER: 0000357261-97-000068 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970619 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970623 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: 97628183 BUSINESS ADDRESS: STREET 1: ONE PROGRESS PLZ STREET 2: SUITE 2600 CITY: ST PETERSBURG STATE: FL ZIP: 33701 BUSINESS PHONE: 8138246400 MAIL ADDRESS: STREET 1: ONE PROGRESS PLZ STREET 2: SUITE 2600 CITY: ST PETERSBURG STATE: FL ZIP: 33701 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: 97628184 BUSINESS ADDRESS: STREET 1: 3201 34TH ST SOUTH CITY: ST PETERSBURG STATE: FL ZIP: 33711 BUSINESS PHONE: 8138665151 8-K 1 FLORIDA PROGRESS/FLORIDA POWER 6/23/97 FORM 8-K As filed with the Securities and Exchange Commission on June 23, 1997 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): June 19, 1997
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 June 30, 1997: Florida Progress issued an Investor News report dated June 18, 1997 regarding the Crystal River Nuclear unit update. A copy of this report is being filed herewith as Exhibit 99.(a). Florida Progress also issued an Investor News report and Florida Power issued a News Release, each dated June 19, 1997, regarding a proposed settlement on the replacement fuel costs due to the nuclear outage, which are filed herewith as Exhibits 99.(b) and 99.(c), 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 Investor News report dated June 18, 1997 regarding the Crystal River Nuclear plant update. 99.(b) Florida Progress Corporation Investor News report dated June 19, 1997 regarding a settlement on replacement fuel costs due to the nuclear outage. 99.(c) Florida Power Corporation News Release dated June 19, 1997, regarding a settlement on replacement fuel costs due to the nuclear outage. 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. The signature of the undersigned on behalf of each listed company shall be deemed to relate only to matters having reference to such company. FLORIDA PROGRESS CORPORATION FLORIDA POWER CORPORATION /s/Pamela A. Saari By:____________________________ Pamela A. Saari Assistant Treasurer of each Registrant Date: June 19, 1997 EXHIBIT INDEX Exhibit No. Description of Exhibit 99.(a) Florida Progress Corporation Investor News report dated June 18, 1997 regarding the Crystal River Nuclear plant update. 99.(b) Florida Progress Corporation Investor News report dated June 19, 1997 regarding a settlement on replacement fuel costs due to the nuclear outage. 99.(c) Florida Power Corporation News Release dated June 19, 1997, regarding a settlement on replacement fuel costs due to the nuclear outage. EX-99.(A) 2 EX 99.(A) TO PROGRESS/POWER 6/20/97 FORM 8-K EXHIBIT 99.(a) Florida Progress Corporation Investor News Analyst Contacts: Mark A. Myers (813) 866-4245 Greg Beuris (813) 866-4442 [CORPORATE LOGO OMITTED] Florida Power Corporation's Crystal River Nuclear Plant Update ST. PETERSBURG, Florida, June 18, 1997 -- Florida Power Corporation's Crystal River nuclear plant has been down since September 2, 1996 to address design issues involving the unit's engineered safeguards system. Florida Power expects to return the unit to service by the end of 1997. The restart plan reflects commitments made by Florida Power to the Nuclear Regulatory Commission (NRC) regarding issues to be resolved prior to returning the unit to service. Attached is a schedule that provides additional information concerning key restart activities. Florida Power has committed to resolving eight design issues, many of which involve physical modifications to the plant and, in some cases, amendments to its license. The attached schedule lists the eight design issues and the expected time periods in which the field work will be done along with targeted dates for restart submittals to the NRC. During the next several months, Florida Power will be filing restart submittals with the NRC. The expected critical path of the current restart plan remains the upgrades to the emergency feedwater system and the emergency diesel generators. Some of the modifications completed thus far include increasing load capacity to both diesel generators, and modifications to the emergency feedwater system and high pressure injection system. These modifications are part of the work necessary to resolve the diesel loading issue and related emergency feedwater system issues. Florida Power's "System Readiness & Review Program" was established to assess "extent of condition." Level 2 reviews are approximately 60 percent complete and Level 3 reviews have just begun. The attached schedule indicates that the discovery phase of this activity should conclude in July. As a result of these reviews, Florida Power has identified various issues, some of which must be addressed prior to restarting the plant. Starting in July, Florida Power expects to begin the "System Lineups, Heatup and Testing" phase of the restart plan. During this phase, various systems will be reviewed and checked to evaluate their condition. Also during this phase, Florida Power will be developing its "Startup and Power Ascension Plan." This plan, scheduled for implementation in December, will focus on managing a comprehensive controlled startup of the plant. Other significant restart activities include full inspection of the unit's steam generator tubes. The purpose of the inspection is to identify and repair tube degradation. This task began June 9 and will involve contractors from Framatome, which designed the steam generators, as well as Florida Power personnel. The project is expected to be complete by mid-July. -- more -- Throughout the restart effort, NRC inspectors will be performing various inspections in the operations, maintenance, engineering and plant support areas. In addition to these inspections, Florida Power will notify the NRC when it is ready for final inspections including an inspection performed by the NRC's "Operational Readiness Assessment Team." These inspections have not been scheduled at this time. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: this news release contains forward looking statements, including statements regarding the restart of the nuclear plant by the end of 1997. These statements involve risks and uncertainties that could cause actual results or outcomes to differ materially from expectations. Key factors that could have a direct impact on actual results include successful execution of the restart plan, actions of regulatory bodies, potential new plant modifications not foreseen at this time which extend the outage beyond 1997 and other factors described in the company's Securities and Exchange Commission filings. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.5 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with about 1.3 million customers. Diversified operations include coal mining, marine operations, rail services and life insurance. #### Florida Power Corporation Crystal River Nuclear Plant Key Restart Activities
LICENSE COMPLETION PERCENTAGE Physical Modifications - (8) design issues. SUBMITTALS FIELD WORK TARGET COMPLETE - ------------------------------------------------------------------------------------------------------------------------------ 1. Emergency feedwater system upgrades and diesel generator load impact. JUN - JUL MAY - AUG SEP 60% 2. Emergency diesel generator loading. JUN - JUL MAR - SEP SEP 60% 3. Low pressure injection mission time. COMPLETE NONE JUN 90% 4. Reactor building spray pump net positive suction head. AUG APR - AUG AUG 70% 5. High pressure injection pump recirculation JUNE 30 SEP - OCT NOV 10% to the reactor building sump. 6. High pressure injection system modifications to JUNE 30 MAY - NOV NOV 40% improve small break loss of coolant accident margins. 7. Failure modes and effects of Loss of DC Power JUL - AUG NONE SEP 90% 8. Generic Letter 96-06 - Containment Penetrations JUL APR - SEP SEP 60% - -----------------------------------------------------------------------------------------------------------------------------
DISCOVERY " System Readiness & Review - "Extent of condition" PHASE - -------------------------------------------------------------------------------------------------------- Level 1 reviews ( 8 systems) COMPLETE Level 2 reviews (18 systems) JUN Level 3 reviews (79 systems) JUL - --------------------------------------------------------------------------------------------------------
System Checks and Power Ascension START FINISH - ------------------------------------------------------------------------------------------------------- System Lineups, Heatup & Testing" JUL DEC Secondary Systems Testing SEP SEP Startup & Power Escalation DEC DEC - -------------------------------------------------------------------------------------------------------
Other Significant Activities START FINISH - ------------------------------------------------------------------------------------------------------- Steam generator testing JUN JUL Reduce maintenance backlog to less than 200 items JAN DEC - -------------------------------------------------------------------------------------------------------
EX-99.(B) 3 EX 99.(B) TO PROGRESS/POWER 6/20/97 FORM 8-K EXHIBIT 99.(b) Florida Progress Corporation Investor News Analyst Contacts: Mark A. Myers (813) 866-4245 Greg Beuris (813) 866-4442 [CORPORATE LOGO OMITTED] Florida Power Corporation Announces Proposed Settlement On Replacement Fuel Costs Due to Nuclear Outage ST. PETERSBURG, Florida, June 19, 1997 -- Florida Progress Corporation's principal subsidiary, Florida Power Corporation, announced today that it has reached an agreement with all intervenors involved in the company's request to collect replacement fuel and purchased power costs associated with the extended outage of the Crystal River nuclear plant. Florida Power has asked the Florida Public Service Commission (FPSC) to vote on the proposed settlement at the earliest date possible. KEY PROVISIONS OF THE STIPULATION AGREEMENT Effective July 1997 or as soon thereafter as approval of the stipulation is received, Florida Power would cease any further recovery through its fuel clause of replacement power costs, except as described below. Florida Power would refund immediately the money collected since April 1 when its rates were adjusted to reflect higher replacement power costs. Florida Power expects to incur approximately $170 million in replacement power costs through the end of 1997, when the unit is expected to be returned to service. Florida Power would be allowed to recover approximately $35 million over a 12-month period after the unit is returned to service. The remaining $135 million will be considered a regulatory asset that would be amortized over a four-year period, commencing when the nuclear unit is returned to service. Florida Power may, at its option, accelerate the write-off of the regulatory asset. Florida Power will temporarily suspend accruals to its retail reserve for fossil plant dismantlement costs during the four-year amortization period. Over this period, suspension of the accrual would offset approximately $60 million of amortization expenses related to the regulatory asset arising from replacement power costs. In order to not distort Florida Power's future financial performance indicators to the FPSC, the effect of the amortization of the regulatory asset and the write-off of the additional operating and maintenance expenses would be excluded in calculating the company's regulatory return on equity. Florida Power's base rates will remain at their current levels during the four-year amortization period. The planned addition of Florida Power's new natural gas-fired combined cycle generating unit in October 1998 would be subject to the base-rate freeze. -- more -- The parties to the stipulation agreement will not seek or support any reduction in Florida Power's base rates or the authorized range of its return on equity during the four-year amortization period. This agreement resolves all present and future disputed issues between the parties regarding the extended outage of the nuclear plant. The nuclear plant was taken out of service September 2, 1996, to repair an oil pipe in the main turbine. The unit would have returned to service in early October but Florida Power decided to keep the unit shut down to address design issues involving the unit's engineered safeguards system. In February 1997, the FPSC approved, subject to refund, Florida Power's request to recover a portion of the replacement power costs. The FPSC also decided at that time to establish a special docket to review those replacement power costs as a result of the extended outage at the nuclear plant. Since the FPSC's approval in February, several parties have intervened in this matter including the Office of the Public Counsel, Florida Industrial Power Users Group, Office of the Attorney General of the State of Florida and the Florida State Legislative Committee for the American Association of Retired Persons. While Florida Power remains firm in its claim that the actions taken to address design issues at its nuclear plant were prudent, the company also recognizes the potential negative effect this matter can have on its customers as well as the distraction it creates by diverting key resources away from efforts needed to return the plant to service in a safe and economical manner. "Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: This news release contains forward looking statements, including statements regarding the restart of the nuclear plant by the end of 1997 and the financial impact of the stipulation agreement. These statements involve risks and uncertainties that could cause actual results or outcomes to differ materially from expectations. Key factors that could have a direct impact on actual results include successful execution of the restart plan, actions of regulatory bodies, potential new plant modifications not foreseen at this time which extend the outage beyond 1997 and other factors described in the company's Securities and Exchange Commission filings. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.5 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with about 1.3 million customers. Diversified operations include coal mining, marine operations, rail services and life insurance. #### EX-99.(C) 4 EX 99.(C) TO PROGRESS/POWER 6/20/97 FORM 8-K EXHIBIT 99.(c) FLORIDA POWER CORPORATION NEWS RELEASE Corporate Relations Department, St. Petersburg, Florida Media Contact: Melanie Forbrick 813/866-5023 Parties Reach Agreement In Florida Power's Request For Fuel Cost Recovery St. Petersburg, Fla. (June 19, 1997) -- Florida Power Corporation, the Attorney General of the State of Florida, the Office of Public Counsel, the Florida Industrial Power Users Group, the Florida Consumers Action Network, State Senator Charlie Crist, the Lake Dora Harbour Homeowners Association, Inc., and the American Association of Retired Persons have reached an agreement that resolves all disputed issues in a case involving Florida Power's request to collect replacement fuel and purchased power costs associated with the extended outage of its Crystal River nuclear unit. The Florida Public Service Commission (FPSC) is expected to vote on the proposed settlement at the earliest possible date. If the agreement is approved, Florida Power will stop recovery of the portion of fuel charge associated with the outage and immediately refund, with interest, money collected since the increase went into effect on April 1. The company had been given permission to collect approximately $2.22 per 1,000 kilowatt-hours on an interim basis. The refund will be made as a one-time credit to the customer's electric bill. The agreement will allow the company to recover $33.8 million, plus interest, of the estimated $170 million in replacement fuel costs expected to be incurred during the outage that began in September 1996. The $33.8 million represents replacement fuel costs from September, October and November of 1996. The company will begin recovery of this money after the plant returns to service, which is expected to be by the end of the year. In order to minimize the impact on customers, the cost will be spread over 12 months as part of the fuel charge on electric bills. The remaining unrecovered replacement fuel costs will be deferred and amortized for up to 48 months and will not result in an increase in customer bills. In order to offset a portion of the amortization, Florida Power will temporarily suspend accruing its reserve for fossil plant dismantlement costs for a period of four years. Prior to the end of the amortization period the company will submit a study for use by the FPSC in establishing a revised accrual to the dismantlement reserve. Any increase due to a deficiency in the reserve will be absorbed by Florida Power. Florida Power Corporation President and CEO Joseph H. Richardson said, "We are sensitive to the concerns our customers have expressed about paying higher electricity prices while our nuclear plant is out of service. This agreement is a positive step that addresses those concerns. It also gives us the opportunity to focus our full attention on bringing the plant back into service as soon as possible." (page 1 of 2) Page 2 Florida Power Corporation Parties Reach Agreement In addition to the refund, the company will maintain its current base rates for the next four years. And as previously announced by Florida Power, its customers will not bear additional costs related to the capital and non-fuel operating and maintenance expenses associated with the nuclear plant outage. The capital costs of the outage are estimated to be between $30 million and $45 million. The operating and maintenance expenses are estimated to be from $80 million to $100 million. The total cost of the outage, including capital, operating and maintenance and replacement fuel, is expected to be between $280 million and $315 million. Florida Power Corporation is the principal subsidiary of St. Petersburg-based Florida Progress Corporation (NYSE:FPC) and serves 1.2 million customers in central and northern Florida. ### -----END PRIVACY-ENHANCED MESSAGE-----