ML19296C681

Amend 9 to License Application.Contains Updated Financial & Statistical Info.Instructions for Inserting Pages for Amends 6,13 & 16,map of Territory Served by Util & Financial Statements Encl

ML19296C681
Person / Time
Site:	Crystal River
Issue date:	04/27/1970
From:	FLORIDA POWER CORP.
To:
Shared Package
ML19296C679	List: ML19296C678 ML19296C680 ML19296C681 ML19296C683
References
NUDOCS 8002270736
Download: ML19296C681 (104)

Text

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'O BEFORE THE UNITED STATES ATOMIC ENERC': COMMISSION AMENDNENT No. 9 Fila Cy.

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TO , , , ..,  : % f " _"8 APPLICATION BY FLORIDA POWER CORPORATION EUR A SECTION 104b CONSTRUCTION PERMIT ~

- AND LICENSE FVR A UTILIZATION FACILITY DOCKET No. 50-302 Florida Power Corporation, a corporation organized and existing under the laws of the State of Florida, applicant for an operating license and cons truction permit for Crystal River Unit 3 Nuclear Ce crating

{ Plant, hereby amends , by attached pages, its Application Vo..r.e titled

" Application for Licenses".

Amendment 9 includes revised Exhibit 4 and Exhibit 5 to update the Application for Licenscr, volu.ac to include the latest financial and s tatis tical infor. nation.

The amendment to Application contains no restricted data or other defense information.

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0007 166  %

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s Amendment No. 9 Page 2

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IN UlTNESS UllEREOF, the applicant has caused its name to be hereunto signed by J. T. Rodgers, Nuclear Project ?!anager, and its corporate seal to be hereunto affixed by J. G. Loader, Secretary, thereunto duly authorized this 27th day of April,1970.

FLORIDA P0'..'ER CORPORATION BY J J. T.6Modgers /

Nuclear Project >fa/' nager b

( ATTEST:

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J/G. Loader Secretary (COITORATE SFAL)

Sworn to and subscribed before me this 27th day April,1970, dLL L . - . . x .) ) '. e 1 L.-~ -. . -.

Notary Public My Co =uission D;pires :

Notary Public State of Florida at Large

!!y Corai ssion E:::oires July 9,1970 (NOTARIAL SEAL) 0007 167

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Docket 50-302 April 27, 1970 O RegulaMry Fi'o C y.

. . , - .,f:/-yf AMENDMENT No. 9 FLORIDA POWER CORPORATION Crystal River Plant Unit 3 Amendment No. 9 to the Florida Power Corporation's Application for Licenses contains revised pages to up'date the volume titled " Application for Licenses" with the' latest financial and statistical information.

The following sheets and exhibits of the Application for Licenses Volume are to be deleted and, where appropriate, revised sheets dated April 27, 1970, should be inserted, Remove the following sheets: Insert the following sheets:

Under General Information Section:

( Pages Jitle Page ., Pages: Title Page

/ Pagespi, L2, '3,v4,2 6, LB Pages 1, 2, 3, 4, 6, 8 Under Tab 1 - Financial Statements:

Exhibits: xhibit 4 Exhibits: Exhibit 4 Under Tab 2 - Annual Report to Shareholders:

Exhibit: 5'Ixhibit5 Exhibits: Exhibit 5 0001168

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Docket 50-302 June 25, 1969

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NIEND:un :;0. 6 FLORIDA PO'.iER CORPORATION Crystal River Plant Unit 3 Amendment 50. 6 to the Florida Power Corporation's Application for Licenses contains revised pai;es to update the volume titled " Application for Licenses" with the lacest es timated cons truction cos t and general financial and statisti-cal infofmation.

The following sheets and exhibits of the Application for Licenses Volume are to be deleted and, where appropriate, revised sheets dated June 25, 1969, should be inserted.

Remove the following sheets: Insert the followinn sheets:

Under General Information Section:

Pages. Pages 2, 3, 4, 5, 6 Pages: Pages 2, 3, 4, 5, 6 Under Tab 1 - Financial Statements:

Exh ib its : Exhibit 3 Exhibits: Exhibit 3 Exh ibit 4 Exhibit 4 Under Tab 2 - Annual Report to Shareholders E:sh ib i t s : Exh ib it 5 Exhibits: Exhibit 5

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O '0007 169

Docket 50-302 September 1, 1971 0

1. INSTRUCTIONS FOR FILING AMENDMENI No.13 FLORIDA POWER CORPORATION Crys tal River Unit 3 9 - u _-7/

NUCLEAR GENERATING PLANT Amendment No. 13 to the Florida Power Corporation's Application for Licenses cuasists of a new Applicatica f or Licenses Volume binder f rom which has been deleted the reference to a " Unit 4" and to which the Document No. has been added. Also included in this Amendment are revised pages and exhibits to update this volume with the latest financial and s tatis tical information and Applicant's Technical Qualifications.

INSTRUCTIONS Transfer the entire contents of your present ' Application" volume to the new binder included with this Amendment, then remove old and insert revised pages dated September 1, 1971 and Exhibits as follows:

Remove the f ollowing: Insert the following:

< Under General Information Section:

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Pa es: Front Title Sheetc Pages: Front Title Sheet Pages 1 thru 8. Pages 1 thru 8-Under Tab 1 - Financial S tatements:

Exhibits: Exh. ;c 2- Exhibits: Exhibit 2/

Exhibit 3- Exhibit 3' Notes.to Exhibit 3 Notes to Exhibit 3 -

Exhibit 4 (1959-1969 Report). Exhibit 4 (1960-1970 Report)

Under Tab 2 - Annual Report to Shareholders :

Exhibits: Exhibit 5 (1969 Report) Exhibits: Exhibit 5 (1970 Report)

Under Tab 3 - Technical Qualifications:

Exhibits: Exhibit 6 pages Exhibits: Exhibit 6 pages 1 thru 8 1 thru 8 only

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Docket 50-302 March 15,1972 File Cy.

ge g atory INSTRUCIIONS FOR AMENDMENT NO. 16

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Crystal River Unit 3 NUCLEAR GENERATING PLA?TI Amendment No. 16 to the Florida Power Corporation's Application for Licenses consists of revised pages and exhibits to update the Volume titled " Application for Licenses" with the latest financial and statistical infomation of the Applicant.

INSTRUCIIONS Remove and insert revised pages and exhibits as follows:

I Remove the following: Insert the following:

Under General Infomation Section:

Pages: Pages 2, 5, & 6 Pages: Pages 2, 5 & 6 Under Tab 1 - Financial Statements:

Exhibits : Exhibit 3 Exhioits: Exhibit 3 Exhibit 4 (1960-1970 Report) Exhibit 4 (1960-1970 Report)

Under Tab 2 - Annual Report to Shareholders:

Exhibits: Exhibit 5 (1970 Report) Exhibits: Exhibit 5 (1971 Report) g <

0007 171 ,

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0007 172

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O 0007 174 O

EXHIBIT 2 PREIDHNARY OFFICIAL STATE 31ENT DATED JUNE 12, 1974 NEW ISSUE In the opinion of Bond Counsel, interest on the Bonds is exempt under existing statutes and regulations from all present Federal income taxes except under certain conditions as explained under " Tax Exemption" herein.

?.21=j omCIAL S'rATEMENT

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$10,575,006 i~faE.

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. Pasco County, Florida 2;iing  % Pollution Control Revenue Bonds 3 $ (Florida Power Corporation Project) j $ Series A

= Dated July 1,1974 ja[!"l 32* _. Due July 1, 2004 e.".E13.sa

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53502 Plus accrued interest from July 1,1974 m Ef-EE Payable, except to the extent payable from Bond proceeds, solely from and secured j!g by a pledge of revenues and other moneys derived from the sale of the Project gj pursuant to an Installment Purchase and Security Contract with B. a. .. ... .

Florida Power Corporation u;ai.g.

Int 22 315(( Principal and semi-annualinterest (January 1 and Jul/1), with the first coupon due January 1, 53E gg 1975, are payable at the principal corporate trust office of the Trustee, Manufacturers Hanover

] $j Trust Company, New York, New York. The Bonds will be coupon Bonds in denominations of g gg $5,000 registrable as to principal only and fully registered Bonds without coupons in the denomi-g "3 nation of $5,000 each or in multiples thereof. The Bonds are subject to redemption prior to maturity

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$53 3 The Bonds are offered when, as and if issued, subject to the approval of legality by Mitchell, Petty & Shetterly, New York, N. Y., Bond Counsel, and certain other conditions.

3{mggj  :! The Bonds were validated by a judgment of the Circuit Court of Pasco County, Florida, E 5 e33 rendered on June 5,1974.

80d Kidder, Peabody & Co. Blyth Eastman Dillon & Co.

Incorporated Incorporated Dated: ,1974 m

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• 0'007 175~

The information contained in this Official Statement has been obtained from Florida Power Corporation or other sources deemed reliable by Pasco County, Florida. No representation or war-ranty is made as to the accuracy or completeness of such information. and nothing contained in this Official Statement is, or shall be relied on as, a promise or representation by the Underwriters. This Official Statement is submitted in connection with the sale of securities as referred to herein, and may not be reproduced or be used, in whole or in part, for any other purpose. The delivery of this Official Statement at any time does not imply that information herein or the Appendix hereto is correct as of any time subsequent to its date.

No dealer, salesman or any other person has been authorized by Pasco County, by Florida Power Corporation or by the Underwriters to give any information or to make any representation other than as contained in this Official Statement in connection with the offering described herein, and if given or made, such other information or representation must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer of any securities other than those described on the cover page or an offer to sell or a t .nicitation of an offer to buy in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.

TABLE OF CONTENTS Page Official St. ement Introductory Statement . . . ... . . . .. .... . . ........... 3 The Project . . .. .......... .. . . .. ...... ... . ... ... 4 The Series A Bonds. . . .. . . . . ...... ............... 5 Security for the Bonds. . .. ..... . . . .. ... . ... 6 Additional Bonds . . . . .. .. .. 7 Existing Mortgage on Company Property and Outstanding Convertible Debentures .. ... . ......... . . ... ........ . 7 The Installment Purchase and Security Contract. . .. ... ........ 7 The Indenture . . .. .... .. .... . ......... 11 Tax Exemption . . . . .. .. ............ . ................. 14 Legality ...

. ... .... ...... . ..... .. .................. 14 Miscellaneous . . .................. ............................. 15 Appendix-Company Prospectus dated June 11,1974 .. .. . .. . .. 16 2 ,

0007 176 n.

. OFFICIAL STATEMENT

$10,575,000 Pasco County, Florida

% Pollution Control Revenue Bonds (FLORIDA POWER CORPORATION PROJECT)

Series A Introductory Statement 9 This Official Statement, including the cover page and reverse thereof, of Pasco County (the County"), a political subdivision of the State of Florida, is for the purpose of setting forth i"nformation concerning' its Pollution Control Revenue Bonds (Florida Power Corporation Project), Series A (the " Series A Bonds"), to be issued in the aggregate principal amount of

$10.575.000, to be dated July 1,1974, to be subject to mandatory prior redemption through annual amortization requirements, and to mature July 1,2004. Additional parity Bonds (the " Additional Bonds") of different series may be issued to complete the financing of the Project or to finance Improvements (both terms hereinafter defined), and to refund any series of Bonds issued under the Indenture referred to below. The Series A Bonds and the Additional Bonds, if any, are _

herein collectively referred to as the " Bonds".

Prior to the issuance of the Series A Bonds, the County will enter into an Installment Pur-chase and Security Contract to be dated as of July 1,1974 (the " Contract") with Florida Power Corporation, a public utility and a Florida corporation (the " Company").

The Bonds will be issued under a Trust l'ndenture to be dated as of July 1,1974 (the

" Indenture"), and delivered by the County to Manufacturers Hanover Trust Company, New York, New York, as Trustee (the " Trustee"). The Trustee shall be registrar for the Bonds, performing the duties in such regard as specified in the Indenture. The Trustee will be the paying agent for the Bonds. The Trustee is also a depository for part of the Company's funds and has a participa-tion in its bank lines of credit.

The proceeds of the sale of the Series A Bonds will be used to fir.ance air and water pollution control facilities at the Anclote Power Generating Units No. I and 2 (the " Plant") of the Company in Pasco County, Florida. The air and water pollution control facilities, including land, structures, machinery, fixtures, improvements and equipment to be located in or on the Properties of the Company (as defined in the Contract) together with all additions thereto and G substitutions therefor, as they may at any time exist, will comprise, collectively, the project (the

" Project") in respect of which the County and the Company have executed the Contract.

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The Series A Bonds will be legal and binding special obligations of the County in accordance with their terms, will be entitled to the benefits of the Indenture, will rank equally and ratably with all other Bonds issued under the Indenture, and will be payable from the receipts and revenues to be derived by t' e County from its sale of the Project to the Company, and all moneys, securities and funds at any time held or set aside by the Trustee under the Indenture.

Neither the faith and credit nor the taxing power of Pasco County or of the State of Florida or of any political subdivision thereof is pledged for the payment of the principal of, the interest on, or the premium, if any, payable upon the Bonds, nor shall the Bonds he deemed a debt. liability, or obligation of the County or of the State or of any political subdivision thereof, and the County is not obligated to pay the Bonds and the interest thereon except from the revenues and proceeds pledged therefor.

There follow in this Official Staten ent brief descriptions of the Project and the Series A Bonds, and summaries of the Contret nd the Indenture. The Appendix to this Official Statement has been furnished by the Company and contains information concerning the business of the Company and certain of its financial statements. The descriptions and summaries herein do not purport to be comprehensive or definitive and reference is made to each document for the complete details of all terms and conditions. Terms not defined herein shall have the meanings set forth in the respective documents. All statements herein are qualified in their entirety by reference to each such document.

THE PROJECT The County is authorized by the Florida Industrial Development Financing Act (the "Act")

to acquire, construct and install industrial development projects, including pollution control facilities to be occupied or utilized by a public utility, aid to enter into agreements for the sale of such projects. The County has found that the Project wiil foster the industrial and business development of and improve living conditions in Pasco County, Florida, and otherwise contribute to the welfare of the State of Florida and its inhabitants through assisting the Company in protecting the environment of the State of Florida.

The Project will be acquired, constructed and installed at the Plant in Pasco County, Florida and will generally consist of a circulating cooling water dilution system; a system to collect, contain and treat chemical wastes resulting from the operation of the Plant; equip-ment for the reduction of nitrogen oxide emissions; an extended aeration process sewage treatment plant with a percolation-evaporation pond; equipment and devices required for the utilization of low-sulfur crude oil for boiler firing; and various air and water pollution ' con-trol devices, including monitors to prevent the re! case of excess residual chlorine to the discharge waters, an ash handling system and air and water monitoring equipment.

The Florida Department of Pollution Control has jurisdiction over the abatement and control of air and water pollution at the Plant, and has certified that the Project proposed to be installed at such Plant, with respect to which information has been furnished to said Department, is, as designed, in furtherance of the purpose of abating or controlling atmospheric pollutants or contaminants or water pollution, as the case may be.

Cost of the Project. From the total proceeds received by the County from the sale of the Series A Bonds, there shall first be set aside with the Trustee in the Bond Service Account, herein.

after defined, the accrued interest received from the purchasers of the Series A Bonds. The balance of the proceeds will be deposited with the Trustee to be held in the Construction Fund, hereinafter defined, for the payment of the Cost of the Project, as defined in the Contract.

4

'0007 178

THE SERIES A BONDS The Series A Bonds will be dated July 1,1974. will bear interest at the rate set forth on the cover page of this Official Statement paphie semi-annually on January 1 and July 1 of each year, beginning January 1,1975, and the total principal amount will mature on July 1, 2004, subject, however, to the requirements for mandatory prior redemption as hereinafter described.

The Series A Bonds shall be issued as coupon Bonds in the denomination of $5,000 or as fully registered Bonds without coupons in the denomination of $5,000 or any authorized multiple thereof.

Coupon Bonds may be registered as to principal in the name of the owner at the principal office of the Trustee, and coupon Bonds may be exchanged at such office of the Trustee for fully registered Bonds of any authorized denominations. Fully registered Bonds may be exchanged for coupon Bonds and/or fully registered Bonds of any other authorized denomination at such office of the Trustee. The County or the Trustee may make a charge for every such exchange or transfer of Bonds sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer and such charge or charges shall be paid before any such new Bond shall be delivered.

Redemption of Bonds Before Maturity The Series A Bonds are non-callable for redemption prior to July 1,1984, except in the event of the circumstances described below under " Extraordinary Redemption" The amount required to be paid to the Bondholders on the date of redemption shall be the principal amount thereof plus the applicable premium. if any (the " Redemption. Price"), plus. in all instances, interest to the date of redemption.

Sinking Fund Redemption O The Series A Bonds are subject to mandatory redemption by the County on July 1 of each of the years and in the principal amounts shown below, the Bonds to be redeemed will be selected by lot and such redemptions will be made at the price of 100% of the principal amount thereof, together with accrued interest to the redemption date, without premium. Such redemption amounts are hereinafter, and in the Indenture, termed the " Amortization Requirements".

Year Amount Year A mount 1989 . $ 105,000 1997. . .. . ... $ 180,000 1990. . . I10.000 1998. .. .. .. ...... 195,000 1991. .. 120.000 1999. . .. 210,000 1992. 125.000 2000. . . ... 225.000 1993. . . 135,000 2001. . .. . 240.000 1994. . 145,000 2002. .. . 255.000 1995. . . . . 155,000 2003. ... ... ... . 275,000 1996. . . . 170,000 2004. . ... ....... . 7,930,000 Provided, however, that there shall be credited against any mandatory sinking fund requirement the principal amount of any Series A Bond which shall have been theretofore surrendered by the Company to the Trustee for cancellation, or purchased or redeemed by the Trustee by applying the moneys in the Bond Fund hereinafter described, and not theretofore applied as a credit, as provided in the Indenture.

The above sinking fund redemption amounts produce an avera :e life of approximately 28 years 3 months.

Optional Redemption The Series A Bonds are subject to redemption at the option of the Cw. my, co be exercised at 9 the direction of the Company, in whole or in part on any date on or .:ter July 1,1984, by lot 5 s m: , , .

o 0007 179

at the Redemption Prices (expressed as a percentage of the principal amount thereof) set forth below, together with accrued interest to the redemption date:

Redemption Lates (inclusive) Redemption Price July 1,19M to June 30.1985 . . . . 103 %

July 1,1985 to June 30,1986 . . .

102 %

July 1,1986 to June 30,1987 . . 102 July 1,1987 to June 30,1988 . . .. . . 101 %

July 1,1988 to June 30,1989 . ... . 101 July 1,1989 to June 30,1990.. .. .. . .

100%

July 1,1990 and thereafter .. . .. ... .. .. 100 Extraordinary Redemption The Series A Bonds are non-callable for redemption prior to July 1,1984, unless (1) the Properties of the Company have been damaged or destroyed to such extent that, in the opinion of the Company, (i) such Properties cannot reasonably be restored within six months to the condition thereof immediately preceding such damage or destruction.

or (ii) normal operations at the Properties of the Company cannot be carried on in 4 period of six months or more, or (iii) the restoration of the Properties of the Comparq a not econorr.~cally feasible; (2) the title to or use of all or substantially all the Properties of the Company shall have been taken under the exercise of the power of eminent domain, including any such taking as would, in the opinion of the Company, be likely to prevent normal operations from being carried on thereat for a period of six months or more; or (3) as a result of any constitutional change, or any legislative or administrative action or any fmal decree, judgment or order, the Contract shall have become soid. unenforceable or impossib% of performance, or unreasonable burdens or excessive liabilities including taxes not being imposed on the date of the Contract shall have been imposed on the County or the Company.

Upon the happer.ing of any one of the events described in (1) through (3) above, the Series A Bonds may be redeemed at the option of the Company on any date in whole only, at 100% of the principal amount thereof, plus accrued interest to the redemption date without premium.

SECURITY FOR TIIE BONDS The principal of and the interest on the Series A Bonds are payable solely out of, and have equal rights with respect to, the receipts and revenues of the County from the Project, including installments of the purchase price required to be paid by the Company pursuant to the Contract.

All rights of the County under the Contract are to be pledged by the County to the Trustee.

In the opinion of the General Counsel of the Company, the obligations of the Company to pay Purchase Price Installments are and will be (i) at least equal as to rank to any present or future unsecured indebtedness of the Company, including the Convertible Debentures. as defined below or (ii) in the event that the Company shall create any indebtedncas secured by a lien upon sub-stantially all of the Company's real property which lien is s.ibordinate to any First Mortgage Liens, as defined below, at least equal as to security to such future secured indebtedness.

Neither the faith and credit nor the taxing power of the County or of the State of Florida or of any political subdivision thereof is pledged for ine payment of the principal of, the interest on, or the premium, if any, payable upon the Bonds, nor shall the Bonds be deemed a debt, liability, or 6

tM 0007 180

c,bligation of the County or of the State or of any political subdivision thereof, and the County is not obligated to pay the Bonds and the interest thereon except from the revenues and proceeds pledged therefor.

ADDITIONAL BONDS The County may issue Additional Bonds, of series other than Series A Bonds, from time to time for the purposes of providing additional funds to pay the cost of completing the Project or any Improvements (defined in the Contract to mean any air and water pollution control and sewage and solid waste disposal facilities and further including other environmental betterments in or on the Properties of the Company in the County and any additions, extensions, relocations, alterations, enlargements, modifications, repairs, replacements or changes with respect to the foregoing or to the Project) and to pay the cost of refunding all of the outstanding Bonds of any series to the extent permitted by the terms thereof; provided, however, such Additional Bonds may be issued only after receipt by the Trustee of the documents required by the Indenture, and upon compliance with the other conditions specified therein.

EXISTING MORTGAGE ON COMPANY PROPERTY AND OUTSTANDING CONVERTIBLE DEBENTURES With certain exceptions, all the property, real, personal and mixed owned by the Company is subject to the First Mortgage Liens. "First Mortgage Liens" as used herein means (a) the lien of any mortgage purporting to be a first mortgage on a substantial portion of the Company's property (the only such lien at the date hereof being the lien of th- Mortgage and Deed of Trust (the " Mortgage"), dated as of January 1,1944, as now or hereafter supplemented, to Morgan Guaranty Trust Company of New York, New York, New York, and Flcrida First National Bank G of Jacksonville, Jacksonville, Florida, as trustees) and (b) the lien of Excepicd Encumbrances as defined in said Mortgage, which Mortgage secures the Company's first mortgage bonds, and all 6rst mortgage bonds to be subsequently issued under said Mortgage. The Mortgage contains provisions for subjecting to the lien thereof (subject to certain limitations in the case of the consolidation, merger or sale of substantially all of the Company's assets) substantially all after-acquired property of the Company, including the Project. The Company has issued and there are now outstanding $19,494,000 4%% Convertible Debentures due August 1,1986 pursuant to an indenture dated as of August 1,1966 between the Company and Irving Trust Company, New York, New York, as trustee. The security given by said indenture to the holders of said Convertible Dehentures is herein called the " Debenture Rihts" The Company represents and covenants in the Contract that nothing in the Mortgage or in the indenture securing the Convertible Deben-tures affects or diminishes the obligation of the Company to pay the Purchase Price Installments.

Under the Contract the Company v.ill hold title to the Project.

THE INSTALLMENT PURCHASE AND SECURITY CONTRACT Acquisition and Construction of the Project The proceeds from the sale of the Bonds will be used solely to pay the Cost of and to cause the Project to be acquired, constructed and installed on the Properties of the Company substantially in accordance with the plans and specifications of the Company, including any and all supplements, amendments and additions thereto and in accordance with change orders ap-proved in writing by the Company from time to time prior to the completion date, and to reimburse the Company for any Cost of the Project heretofore or hereafter paid by the Company: provided, however, that no supplement, amendment, addition or change order relating to the plans and specifications shall change the essential character and function of the Project. In addition. to supplementing, amending and adding to the plans ar 1 specifications, including any change orders, 7

-. 0007 181 m _, o

within the limits set forth in the Contract, the Cc spany shall be authorized to omit components of the Project or to add or substitute new comp < aents as an addition to the Project or in sub-stitution of components so omitted provided that such omissions, additions or substitutions will, in the opinion of counsel recognized on the subject of municipal bonds, which opinion shall be in writing and 61ed with the Trustee and the County, not result in the interest on any of the Bonds becoming subject to Federal income taxes then in effect.

If the moneys in the Construction Fund available for payment of the cost of construction of the Project (including moneys from the proceeds from the sale of any Additional Bonds sold pursuant to the terms and provisions of the Indenture to 6 nance completion of the Project) are not suf6cient to pay the cost thereof in full, the Company agrees to complete the Project and that it shall not be entitled *o any abatement or diminution of the payments to be made under the Contract.

Sale of tt

• Projectt Purchase Price Installments The pt. chase price for the Project shall be an amount equal to the principal amount of the Bonds. The Company agrees te pay to the Trustee in Clearing liouse funds of the city in which the Trustee is located as the " Purchase Price Installments", the amounts below on the dates, as follows :

(a) Commencing prior to the January 1,1975 interest payment date, and continuing until the principal of and interest on the Bonds shall have been fully paid or provision for their ~

payment shall have been made in accordance with the Indenture, the Company shall pay, not later than one business day prior to the date on which the Trustee is required to make the payments, an amount equal to the sum of (i) the interest becoming due on the Bonds in accordance with their terms on such date, (ii) the principal,if any, becoming due on the Bonds in accordance with their terms on such date. (iii) the Amortization Requirement,if any, for the term Bonds, and (iv) the premium, if any, required to be paid for any redemption of the Bonds on such date.

The Company covenants and agrees that it will pay the Purchase Price Installments at such times and in such amounts to assure that no default in the payment of principal of or interest on the Bonds shall at any time occur. Any moneys transferred from the Construction Fund to the Bond Service Account for the payment of interest on the Bonds during the con-struction of the Project will be credited against the Company's next succeeding obligation to maka payments of Purchase Price Installments in respect of such interest. At its election the Company may pay Purchase Price Installments representing all or any part of the Amor-tization Requirement by delivering to the Trustee for cancellation Bonds in satisfaction of the Amortization Requirement, or such part thereof, at least 45 days before the date of maturity or the date set for mandatory redemption.

(b) The Company agrees to pay to the Trustee, until the principal of and interest and any redemption premium on the Bonds shall have been fully paid or provision for the payment thereof shall have been made, the reasonable fees and charges of the Trustee and paying agent or agents for all services and expenses.

(c) The Company agrees to pay to the County the reasonable costs and expenses of the County incurred in connection with the Contract, the Indenture and the Bonds.

Company OQgations Unconditional The Company unconditionally guarantees to pay the Purchase Price Installments and to perform and observe the other agreements on its part contained in the Contract. Until such time as the principal of and interest and any redemption premium on the Bonds shall have been fully paid or provision for the payment thereof shall have been made in accordance with the Indenture, the 8

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0007 182

Company (i) will not suspend or discontinue any Purchase Price Installments, (ii) will perform and obser re all of its other agreements contained in the Contract, and (iii) except as provided in Section 10.1 of the Contract will not terminate the Contract for any cause including, without limit-ing the generality of the foregoing, failure of the County to complete the Project, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the Project, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State of Florida or any political subdivision of either thereof or any failure of the County to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with the Contract. Nothing contained in Section 5.4 of the Contract shall be construed to release the County from the performance of any of the agreements on its part contained therein; and in the event the County should fail to perform any such agree-ment on its part, the Company may institute such action against the County as the Company may deem necessary to compel performance to recover its damages for non-performance so long as such action shall not violate the agreements on the part of the Company contained in the first sentence of this paragraph or diminish the amounts required to be paid by the Company pursuant to Section 5.2 of the Contract. The Company may, however, at its own cost and expense and in its own name or in the name of the County, prosecute or defend any action or proceeding or take any other action involving third persons which the Company deems reasonably necessary in order to secure or protect its right of possession, occupancy and use under the Contract, and in such event the County agrees to cooperate fully with the Company and to take all action necessary to etTect the substitution of the Company for the County in any action or proceeding if the Company shall so request.

Guaranty of Company G The Company absolutely and unconditionally guarantees to the County and the Trustee in the Contract the full and prompt payment by the Company, as and when the same shall become due and payable under the terms and provisions of the Contract and the Indenture, of all amounts payable from time to time under the Contract and the Indenture.

Merger, Sale or Consolidation The Company agrees that during the term of the Contract it will maintain its corporate existence and its qualification to do business in Florida, will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge into another corporation or permit one or more other corporations to consolidate with or merge into it; provided, that the Company may, without violating the agreement contained in the Contract, consolidate with or merge into another corporation, or permit one or more other corporations to consolidate with or merge into it, or sell or otherwise transfer to another corporation all or substantially all of its assets as an entirety and thereafter dissolve, provided the surviving, resulting or transferee corpo-ration, as the case may be (if other than the Company), is a corporation organized and existing under the laws of one of the states of the United States, and assumes in writing all of the obligations of the Company in the Contract, and qualities to do business in the State of Florida.

Events of and Remedies upon Deft. ult It shall be an Event of Default if any one or more of the following shall have occurred and be continuing:

(a) The Company shall default in the payment when due of any of the Purchase Price Installments required to be paid under the Contract; G (b) The Company shall default in the performance of any other covenant or provision thereof on its part required to be performed and such default shall not be remedied within a.

9 Im .. . '0'007 183 1

period of 00 days after written notice thereof to the Company from the County or the Trustee unless the County and the Trustee (with any required consent of Bondholders under the provisions of the Indenture) shall agree in writing to an extension of such time prior to its expiration ;

(c) The dissolution or liquidation of the Company or the filing by the Company of a voluntary petition in bankruptcy, or failure by the Company promptly to institute judicial proceedings to lift any execution, garnishment or attachment of such consequence as will impair its ability to carry on its operations, or adjudication of the Company as a bankrupt, or assignment by the Company for the benefit of its creditors, or the entry by the Com-pany into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Company in any proceeding for its reorganization instituted under the provisions of the general bankruptcy act, as amended, or under any similar act which may hereafter be enacted.

Except for the obligations to pay Purchase Price Installments when due and to indemnify the County and the Trustee against certain claims, the Company shall not be deemed in default for any period it is unable in whole or in part to carry out its agreements under the Contract by reason of force majeure (as defined in the Contract).

If an Event of Defauit shall occur, the Trustee may at its option take any one or more of the following remadial steps:

(a) The Trustee, as provided in the Indenture, may, at its option, declare all Purchase Price Installments payable for the remainder of the term of the Contract to be payable, whereupon the same shall become immediately due and payable.

(b) The Trustee may have access to and inspect, examine and make copies of the books and records and any and all accounts and data of the Company relating to its operations.

(c) The Trustee may take whatever action at law or in equity may appear necessary or desirable to collect the Purchase Price Installments then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of the Company under the Contract.

Amendment The County and the Trustee may, from time to time, and at any time, consent to a contract supplernental to the Contract, provided such contract shall not be inconsistent with the terms and provisions of the Contract or detrimental to the interests of the Bondholders, (a) to cure any ambiguity or defect or omission in the Contract or in any supplemental contract, or (b) to amend the Contract for the purposes of the : ene a Additional Bonds, or (c) to grant to or confer upon the Trustee for the berd .A he Bondholders any addi-tional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Bondholders or the Trustee, or (d) to amend the Contract for the purposes of chant, components of the Project as permitted by the Contract which requires that the Company shall have previously filed with the County and the Trustee an opinion of counsel to the etTect that the amendment to be effected by such supplemental contract will not result in the interest in the Bonds becoming subject to Federal income taxation.

10 t'1L 0007 184 non7 fn

THE INDENTURE The following, in addition to the information contained under the headings "The Series A Bonds", " Security for the Bonds" and " Additional Bonds", summarizes certain provisions of the Indenture delivered by the County to the Trustee to which document in its entirety reference is macc 4r the detailed provisions thereof.

Assignment of County's Interest The Indenture pledges to the Trustee all of the County's right, title and interest in the Contract, the Project and the Purchue Price Installments. The County is obligated to cause the Company to make payments of Purchase Price Installments to the Trustee to provide for the payment of principal or Redemption Price of or i::terest on the Bonds. The Series A Bonds, together with any Additional Bonds, are of equal rank in respect of such payments, except that moneys set aside from time to time for payment of Bonds previously called for redemption will be held for the benefit of the holders of such Bonds only.

Creation of Funds and Accounts The Indenture creates the following special funds and accounts which shall be held in trust and administered by the Trustee: the " Bond Fund" (including as a part thereof the " Bond Service Account" and the " Redemption Account"), and the " Construction Fund". Pending application in accordance with the Indenture, moneys deposited to such Funds and Accounts shall be subject to a lien and charge in favor of the holders of the Bonds.

Fund Deposits and Disbursements 9 Bond Fund. Deposits to the Bond Fund shall consist of all Purchase Price Installments to be paid by the Company to the Trustee under the terms of the Contract. Additional deposits to the Bond Fund shall include certain other amounts paid out of Construction Fund deposits, as provided in the Indenture. Withdrawals from the Bond Fund shall be made for deposit to the other Accounts as hereafter described for the purpose of paying the principal, Amortization Requirements, interest and premium, if any, on the Bonds.

Bond Service Account. There shall be initially deposited to the credit of the Bond Service Account in the Bond Fund the accrued interest received upon the sale of the Series A Bonds.

Thereafter deposits to the Bond Service Account shall be made by withdrawals from the Bond Fund in amounts sufficient to pay the principal of and the interest on all the Bonds from time to time outstanding as the same respectively become due and payable.

Redemption Account. There shall be deposited to the credit of the Redemption Account in the Bond Fund any amount which the Company may from time to time pay to the Trustee for deposit to the credit of such Account, and all other amounts which are to be so deposited under any provision of the Indenture. Moneys to the credit of the Redemption Account shall be applied to the purchase of Bonds in the open market and to the redemption of Bonds upon the terms and conditions provided in the Indenture.

Construction Fund. There shall be deposited to the credit of the Construction Fund the pro-ceeds of the sale of the Series A Bonds less the amount received as accrued interest and required to be deposited to the Bond Service Account and the proceeds from the sale of any Additional Bonds less the accrued interest received upon such sale. >1oneys in the Construction Fund con-stituting the proceeds of the sale of the Series A Bonds shall be applied as set forth herein under "The Project-Cost of the Project", and moneys in the Construction Fund constituting th6 pro-O ceeds of any series of Additanal Bonds shall be applied only to the cost of constrttetion of any.

Improvements authorized to be constructed out 11 of the' proceeds of the sale i

00of such s*d 7 of.MS

,0 4 1' a s

Additional Bonds. Moneys constituting any particular Construction Fund deposit shall be with-drawn and disbursed only upon receipt by the Trustee of the necessary requisitions.

Investment of Fu ids The Trustee shall, at the request of the Company invest moneys held in the Construction Fund and the Bond Fund in (1) securities that are direct obligations of the United States or the payment of which is unconditionally guaranteed by the United States or are obligations which in the opinion of the Attorney General of the United States are general obligations of the United States backed by its full faith and credit; (2) obligations of Federal Intermediate Credit Banks, Federal Home Loan Banks, Banks for Cooperatives, Federal Land Banks, or the Government National Mortgage Association; (3) certificates of deposit of banks or trust companies (including the Trustee) which are members of the Federal Reserve System and have a minimum combined capital, surplus and undivided profits of not less than $10 million; (4) obligations of a State, Territory or possession of the United States, including the Commonwealth of Puerto Rico or any political subdivision of any of the foregoing; and (5) commercial paper or other corporate debt securities.

The interest, including any profit realized on the investments in the Bond Fund and the Construction Fund shall be credited to the respective Fund and any loss shall be charged to the respective Fund.

Defeasance When the principal or Re'uaption Price, as the case may be, of, and the interest on, all the Bonds issued under the Indenture have been paid, or provision has been made for payment, together with all other sums payable by the County under the Indenture, the right, title and interest of the Trustee shall thereupon cease and the Trustee, on demand of the County, shall release the Inden-ture, and, subject to the Contract, turn over to the County, or to such person, body, or authority as may be entitled to receive the same, all balances remaining in any funds thereunder.

Such provision for payment may be made by delivery to the Trustee of (i) cash; (ii) obliga-tions described in paragraph (1) under the caption " Investment of Funds", maturing on or before the dates when payments in respect of the Bonds become due, and the principal amount of which and the interest thereon when due will be, in the aggregate sufficient to make all payments on the Bonds when due; or (iii) any combination of cash and such obligations.

Events of and Remedies upon Default Each of the following events is an " event of default"-

(a) Payment of the principal and of the premium, if any, of the Bonds shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemp-tion or by failure to meet an Amortization Requirement or otherwise; or (b) payment of any installment of interest on any of the Bonds shall not be made when the same shall bmne due and payable; or (c) the County shall unreasonably delay or fail to carry on v ith reason-able dispatch or shall abandon the construction of the Project; or (d) the County shall for any reason be rendered incapable of fulfilling its obligaticr.s under the Indenture; or (e) final judgment for the payment of money shall be rendered against the County arising from its il 4 ,

12 uu s ,

t 0007 186

acquisition. construction and installation of the Project and its sale thereof and any such judgment .nall not be discharged within sixty (60) days from the entry thereof or an appeal shall not be taken therefrom or from the order, decree or process upon which or pursuant to which such judgment shall have been granted or entered, in such manner as to stay the execution of or levy under such judgment, order, decree or process or the enforcement thereof; or (f) an order or decree shall be entered, with the consent or acquiescence of the County, appointing a receiver or receivers of the County or the Project or any part thereof or of the Purchase Price Installments or any other income therefrom, or if such order or decree, having been entered without the consent or acquiescence of the County, shall not be vacated or discharged or stayed on appeal within 120 days after the entry thereof; or (g) any proceeding shall be instituted, with the consent or acquiescence of the County, for the purpose of etTecting a composition between the County and its creditors or for the purpose of adjusting the claims of such creditors pursuant to any federal or state statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable from the Purchase Price Installments or any other income to be derived from the sale of the Project; or (h) an event of default under the Contract as defined in Section 9.1 thereof shall have occurred; or (i) the County shall default in the due and punctual performance of any other of the covenants, con-ditions, agreements and provisions contained in the Bonds or in the Indenture on the part of the County to be performed or the Company shall default in connection with the matters referred to in Section 7.4 of the Contract and such default shall continue for 90 days after written notice specifying such default and requiring same to be remedied shall have been given to the County by the Trustee, which may give such notice in its discretion and shall give such notice at the written request of the holders of not less than 10% in aggregate principal amount of the Bonds then outstacding.

Upon the happening and continuance of any event of default, then and in each and every such case, unless the principal of all of the Bonds shall have already become due and payable, the Trustee may, and upon the request of the holder or holders of not less than 20% of the Bonds then outstanding shall, by notice to the County, declare the principal of all of the Bonds then outstanding and the interest accrued thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything contained in the Bonds or in the Indenture to the contrary notwithstanding.

If, after the principal of all the Bonds shall have been so declared due and payable, all arrears of interest upon all of the Bonds then outstanding, except interest accrued since the last interest payment date, at the respective rates provided in the Bonds, shall have been paid or payment provided therefor, and the County discharges all other obligations as required by the Inden-ture, then the holders of not less than a majority in aggregate principal amount of the Bonds then outstanding may, by written notice to the County, rescind and annul such declaration and its consequences.

Upon the happening and continuance of any event of default, then ar.d in every such case the Trustee may, and upon the written consent of the holders of not less than 10% of the Bonds then outstanding shall, proceed to protect and enforce its rights and the rights of the Bondholders under the Indenture by the exercise of any proper legal or equitable right or remedy as the Trustee being advised by counsel shall deem most effectual to protect and enforce such rights.

The holders of a majority of the Bonds then outstanding shall have the right, subject to the provisions of the Indenture, to direct the method and place of conducting all remedial proceedings to be taken by the Trustee. No holder of any of the Bonds shall have any right to institute any suit, action or proceeding in equity or at law for the execution of any trust under the Indenture, or S for any other remedy thereunder, except as provided in the Indenture.

13 58' .

0007 187'

Amendment The County and the Trustee may, from time to time and at any time, enter into a supple-mental indenture without the consent of the Bondholders for any one or more of the following purposes provided such supplemental indenture shall not be inconsistent with the terms and pro-visions of the Indenture or detrimental to the interests of the Bondholders: (a) to cure any ambiguity or formal defect or omission in the Indenture or in any supplemental indenture, or (b) to grant to or confer upon the Trustee for the benefit of the Bondholders any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Bondholders or the Trustee.

The holders of not less than two-thirds (M) in aggregate principal amount of the Bonds then outstanding shall have the right, from time to time, anything contained in the Indenture to the contrary notwithstanding, to consent to and approve the execution by the County and the Trustee of ::uch trust indenture or supplemental indentures as shall be deemed necessary or desirable by the County for the purpose of modifying, altering, amending, adding to or rescinding, in any particular,any of the terms or provisions contained in the Indenture or in any supplemental indenture; provided, however, that nothing contained in the Indenture shall permit, or be con-strued as permitting (a) an extension of the maturity of the principal of or the interest on any Bond or (b) a reduction in the principal amount of any Bond or the redemption premium or the rate of interest thereon, or (c) the creation of a lien upon or a pledge of the Purchase Price Installments or any other income derived from the sale of the Project other than the lien and pledge created by the Indenture, or (d) a preference or priority of anj Bond or Bonds over any other Bond or Bonds, or (e) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental indenture.

The Trustee may be removed at any time upon petition of the holders of a majority in aggregate principal amount of the Bonds then outstanding under the Indenture.

TAX EXEMPTION In the opinion of Afitchell, Petty & Shetterly, New York, N. Y., Bond Counsel, the interest on the Series A Bonds is exempt from all present Federal income taxes under existing statutes and regulations (except for interest on any Bond for any period during which such Bond is held by a person who is a substantial user of the Project or a related person).

With regard to Florida law, Bond Counsel advises that the Act provides that the Series A Bonds, their transfer and the incorr.2 therefrom ' including any profit made in the sale thereof) shall at all times be free from taxation by the State of Florida or any local unit or political sub-division or other instrumentality of the State, but notwithstanding the Act, that Chapter 220, Florida Statutes, imposes a State corporate income tax on the amount of interest earned and profit made on the Series A Bonds by corporations subject to the Florida cc,rporate income tax.

LEGALITY Legal matters incident to the authorization and issuance of the Series A Bonds are subject to the unqualified approving opinion of 31itchell, Petty & Shetterly, New York, N. Y., Bond Counsel. Copies of such opinion will be available at the time of the delivery of the Series A Bonds.

With respect to matters pertaining to the Company, the County and the Underwriters will receive the opinion of S. A. Brandimore, Esq., General Counsel of the Company. Certain legal matters will be passed on for the Underwriters by their counsel, Shearman & Sterling, New York, New York.

The Series A Bonds were validated by a judgment of the Circuit Court of Pasco County, Florida rendered on June 5,1974.

14 c r U 0007 188

MISCELLANEOUS The foregoing summaries do not purport to be complete and are expressly made subject to the exact provisions of the complete documents. Information, including certain financial state-ments relating to the business and properties of Florida Power Corporation, is annexed to this Of6cial Statement as the Appendix, to which reference is hereby made.

This Official Statement was duly approved, executed, and delivered by the County.

PAsCO COUNTY, FI.oRIDA By:

Chairman of the Board of County Commissioners Dated : ,1974 O

O 1 ~5

'0007 189

O APPENDIX Florida Power Corporation (The " Company")

O The information contained in this Appendix to the Official Statement has been obtained from the Company. The County and the Underwriters make no representation as to the accuracy or completeness of the information contained in this Appendix.

This Appendix consists of the reproduction in whole or in part of certain pages of the Company's Prespectus dated june 11, 1974 relating to the pro-posed otTering of 450.000 Shares of Cr.nulative Preferred Stock of the Com-pany which is referred to therein as the "New Preferred Stock"; such information shall be deemed to speak only as of the date of such Prospectus.

The original numbering at the bottom of such pages in that Prosoectus has been retained.

O 16 - .

0007 190.

O PROSPECTUS 450,000 Shares Florida Power Corporation Cumulative Preferred Stock,10% Series (Par Value $100 Per Share)

Not redeemable prior to August 15, 1979 through certain refunding operations; otherwise redeemable at $110.00 per share on or prior to August 15,1979; at $107.50 per share thereafter and on or prior to August 15,1984; at $105.00 per share thereafter and on or prior to August 15,1989; at $102.50 per share thereafter and on or prior to August 15,1994; and at $101.00 per share thereafter; plus in each case, dividends accrued to the redemption date. Also entitled to the benefit of a mandatory sinking fund begmmng with the year ending August 15,1975. See " Description of New Preferred Stock" herein.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.

ANY REPRESENTATION TO THE CONTRARY IS A CRBilNAL OFFENSE.

Initial Public Underwriting Proceeds to Offering Prke(l) Coaunissions(2) Company (1)(3)

Pe r Share . . . . . . . . . . . . . . . . ....... $100.00 $1.05 $98.95 Total . . ... .................. $45,000,000 5472,500 $44,527,500 (1) Plus accrued dividends,if any, from June 18,1974.

(2) The Company has agreed to indemnify the several Underwriters against certam civil liabilities, including Labilities under the Securities Act of 1933.

(3) Befoi: deducting expenses payable by the Company estimated at $50,000.

The date of this Prospectus is June 11,1974.

h 0007 191

-3 $ .><.t,

O TABLE OF CONTENTS Page The Company ... . . . .. 3 Use of Proceeds and Construction Program. . 3 Common Stock Dividends and Market Price. . . 4 Capitalization .. . . . . . . . 5 Statements of Income. . .. . ... . 6 Map . . . . . .. . 10 Business .. . .... .. 11 Operating Statistics . . . . .. . . 16 Description of New Preferred Stock. ... . ... . . . .. 17 Legality . . .. . . . .. . . . 18 Experts . . . . . . .. 18 Financial Statements . . . .. .. .... .... 19 This Prospectus is not an offer to sell, or a solicitation of an offer to buy, by any Underwriter in any state in which it is unlawful for such Underwriter to make such an offer or solicitation.

Neither the delivery of this Prospectus nor any sale made hereunder shall, under any circumstances, create an implication that information herein is correct as of any time subsequent to its date.

The Company is ofTering publicly through Underwriters 450.000 shares of a 10% Series of Cumulative Preferred Stock, par value $100 per share (the New Preferred Stock), with this Prospectus. The Company presently intends to offer publicly through Underwriters 1,800,000 shwes of Common Stock, par value $2.50 per share (the New Common Stock), later this month.

The sale of the New Preferred Stock and the sale of the New Common Stock are separate and independent transactions, not contingent one upon the other. Although certain information con-tained herein pertains to both otTerings, this Prospectus relates solely to the Nne Preferred Stock.

~

. . _ z O 0007 192

O THE COMPANY Florida Power Corporation was incorporated in Florida in 1899 and has its principal executive office at 320134th Street South, St. Petersburg, Florida 33711, telephone number 813-866-5151.

The Company is an operating public utility engaged in the production, transmission, distribution and sale of electricity wholly within the State of Florida (see Map).

USE OF PROCEEDS AND CONSTRUCTION PROGRAM The net proceeds from the sale of the New Preferred Stock and the New Common Stock will be used to partially repay temporary borrowings incurred for construction purposes amounting to approximately $122,000,000.

The estimated construction program for 1974 aggregates approximately $230.800,000 (of which approximately $91,150,000 was expended during the first four months of 1974) and includes expenditures for the following principal items:

% of Amount Total 825,000 Kilowatt nuclear-fueled Crystal River Unit No. 3.. . $ 50,000,000 21.7 %

515,000 Kilowatt oil-fired Anclote Plant Unit No.1. . . . . . . . 18,500,000 8.0 515,000 Kilowatt oil-fired Anclote Plant Unit No. 2. . . . . . . . . 27,600,000 12.0 Gas turbine peaking units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9 Other production plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transmission lines and substations. . . . . . . . . . . . . . . . . . . . . . . . .

30,800,000 15,000,000 25,500,000 13.3 6.5 11.0 Distribution lines, transformers and substations. . . . . . . . . . . . . 48,800,000 21.1 Automotive equipment, land and structures. . . . . . . . . . . . . . . . 7,100,000 3.1 N u c lear f u el . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 3.3

$230,800,000 100.0 %

The Company's construction program as presently planned for the three-year period 1975-77 will require the expenditure of approximately $680.000.000. Actual expenditures for construction purposes may vary from the foregoing estimates because of changes in the Company's plans and fluctuations in the costs of materials and labor. The 1974-77 construction program will require additional permanent financings, the nature and amount of which will depend on, among other things, market conditions prevailing at each time such financings are to be undertaken. In deter-mining the type and amount of future financings, the Company's choice may be limited by the coverage requirements of its Mortgage and the provisions of its Composite CertiScate of Rein-corporation (Charter).

Under the provisions of the Mortgage, additional bonds may not be issued unless the net earnings of the Company (as defined) for 12 consecutive calendar months within the 15 calendar months immediately preceding the issue of the additional bonds shall have been at least twice the amount of annual interest charges on all bonds at the time outstanding and the additional 3

t' 5 t ct U

O bonds being issued. As of February 28,1974, the Company would not be allowed under this restric-tion to issue any bonds.

The Preferred Stock provisions of the Charter require a majority consent of the Preferred Stock for the issue of any additional shares of Preferred Stock unless the net earnings of the Company (as defined) for 12 consecutive calendar months within the 15 calendar months imme-diately preceding the issue of the additional Preferred Stock shall have been at least 1% times the aggregate tor a twelve months period of the interest charges on indebtedness of the Com-pany and the annual dividend requirements on all Preferred Stock outstanding after the issue of such shares, excluding interest charges on indebtedness and dividends on Preferred Stock to be retired in connection with the issuance of the additional Preferred Stock. As of February 28,1974, the Company would be allowed under this restriction to issue only a minor amount of Preferred Stock, in addition to the New Preferred Stock.

On May 1,1974, the Company (ntered into a $50,000,000 Five-Year Term Loan (Term Loan) with a commercial bank at an interes: rate which averages 1157c of the prime rate at this bank over the life of the loan and changes the day following a change in the prime rate. The proceeds of the Term Loan were applied to the partial repayment of temporary borrowings incurred for ,

construction purposes and toward the purchase of gas turbine peaking units, y The Company is also in the process of entering into an Installment Purchase and Security Contract with Pasco County, Florida, for the purpose of guaranteeing approximately $10,000,000 in Pollution Control Revenue Bonds (Florida Power Corporation Project), Series A (the Series A Bonds), to be issued by the County to finance air and water pollution control facilities at the Company's Anclote Power Generating Units No. I and 2 in Pasco County, Florida. Other items in the 1974-77 construction program may be financed through the sale c,' additional pollution control revenue bonds.

The Company's ability to obtain the substantial amount of additional capital required to finance the 1974-77 construction program, and the cost of such financing, will be adversely affected unless revenues and net income can be maintained at levels suflicient to permit the issuance of bonds and Preferred Stock in adequate amounts and otherwise to attract capital on a favorable basis. This will necessitate rate relief in addition the rate adjustments granted by the Florida Public Service Commission in April of 1974. Accordingly, the Company presently has pending before the Commission a second petition to provide $31,242,000 or more in additional revenue, as set forth below under " Rates and Regulation" During the five years and two months ended February 28,1974, the Company spent approxi-mately $777,000,000 on gross additions to utility properties (or about 567o of utility plant at the end of the period) and retired approximately $43,000,000 of utility properties.

COMMON STOCK DIVIDENDS AND MARKET PRICE The Company has paid quarterly dividends without interruption on the outstanding shares of Common Stock since the distribution of its Common Stock to the public in December 1945. During the last 20 years the total dividends paid per share have increased each year. On February 21,1974, the quarterly dividend was raised to its present rate of 48M cents per share from 45 cents. It is anticipated that the next regular quarterly dividend will be payable on June 20, 1974, to stock-holders of record on June 5,1974. Accordingly such dividend will not be payable on the -hares of New Common Stock.

4

,@ l L\ '

. > c (;

000719E

O It is the intention of the Board of Directors to continue to pay dividends quarterly on the Common Stock, but such dividends are dependent on future earnings, the financial position of the Company and other factors.

The high and low prices of the Company's Common Stock on the New York Stock Exchange from January 1,1969 through June 10,1974 were as follows:

Year High Low 1%9 ...... ......... .............. .. 52 % 42 1970 ............. ..................... 55 40 %

1971 ................................... 57 % 40 1972 .................. ................ 54 % 36 %

1973 ...... ............................ 51 % 22 1974 (through June 10) .. .. . .. .

30 % 19 %

The reported last sale price on June 10,1974 was 20% per share.

CAPITALIZATION The table below sets forth the actual and pro forma capitalization of the Company at 9 February 28,1974. The pro forma capitalization reflects the sale of the New Common Stock, the sale of the New Preferred Stock, the borrowing under the Term Loan and the issuance of the Series A Bonds.

Pro Forma _

Actual Amount ' Ratios (Thousands of Dollars)

Common Stock Equity. . ... $ 343,038 $ 382,638 31.7m Preferred Stock . . .. . ...... 134,462 179,462 14.8 Long-Term Debt . ... ..... 587,717 647,717 53.5 Total (See Note). . $1,065,217 $1.209,817 100.0 %

Nors:

See the Balance Sheet and Notes 2 and 3 to the Financial Statements for details of the capitalization as of February 28,1974.

5 .

O -

0007 195

.q.. .

,4

O STATEMENTS OF INCOME The ;.)llowing statements of income of the Company for the nye years ended December 31, 1973 have been examined by Arthur Andersen & Co., independent certined public accountants, as set forth in their report included elsewhere in this Prospectus. The statement of income for the twelve months ended February 28,1974. not examined by independent certined public accountants, reflects, in the opinion of the Company, all adjustments (which included only normal recurring adju tments) necessary to present fairly the earnings for such period. These statements should be read in conjunction with the 6nancial statements and related noter. appearing elsewhere in this Prospectus. Twelve Months Ended Febr 28, Year Ended December 31 1969 1970 1971 1972 1973 (Unaudited)

(Thousands of Dollars)

Oprating Revenues-Electric (a) $144.740 $158.145 $176,540 $201,857 $255.045 $263.719 Operating Revenue Deductions:

Fuel used for electric generation . .. $ 24.847 3 31,804 $ 37.267 $ 41,061 $ 75 037 $ 85,052 Other operation expenses ... . . ..... 25,018 25,4)5 28,557 34.453 48.678 53,182 Maintenance . . . ..... .... 7,683 9,347 11,950 12,560 15,983 17.091 Provision for depreciation ........... 16,301 18.316 20,164 22,790 24,761 25,297 Taxes other than income taxes .. .. .... 11,255 12,677 13,652 14,902 17,989 18,495 Provision for income taxes (b) . .

Payable currently-Federal . .. . 17,389 14,005 14,241 15,427 3,636 (2,722)

Payable currently-State ... . .. .. . - - - 1,873 800 189 Deferred to subsequent years-Federal.. 3,233 3,636 3,951 4,940 12.036 12.947 Deferred to subsequent years-State . ... - - - 512 1,295 1,400 Provided in prior years for taxes payable currently ,. .. . .. ..... (721) (852) (945) (1,084) (1,263) (1,315)

Investment tax credit. net of amortization 1.545 (36) 924 1.310 3.339 4.081 Total operating revenue deductions $106.550 $114,332 $129,761 $148.744 $202,311 $213.697 Operatinz Income .... ...... .. ...... $ 38.190 $ 43.813 $ 46,779 $ 53,113 $ 52,734 5 50.022 Other Income and Deductions:

Allowance for funds used during construc-tion (c) . . . . ...... . . $ 4,150 $ 3.393 $ 7,812 $ 13,962 $ 26.965 $ 27.726 Gain on reacquired bonds ... . ..... 1.371 1.467 1,250 1.140 1,144 1,144 Miscellaneous other income and .deduc-tions) ..... . . .... ........ 176 (203) 75 388 (87) (73)

Total other income and deductions S 5,697 $ 4,657 $ 9,137 $ 15,490 $ 28.022 $ 28.797 Interest Charges:

Intere st on long-term debt . . . . . . . . . . . . . . $ 13,224 $ 15,166 $ 18.811 $ 24,172 $ 31.770 $ 33,365 Other interest expense .. ........ 1,203 _ 2,010 1873 2,424 4,853 5.253 Total interest charges . . . . . . . . . . _$ 14.427 $ 17,?76 $ 20,684 $ 26,5% $ 36.623 $ 38.618 Net Income . . . . . . . . . . . . . . . . . $ 29,460 $ 31,294 5 35,232 $ 42,007 $ 44.133 $ 40.201 Dividends on Preferred Stock .. . ...... 1.512 1.512 3,287 4,524 5.718 6.365 Net Income After Dividends on Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . J_27,9_4 8_ $ 29.782 3 31.945 $ 37.483 $ 38.415 1 33.836 Average Shares of Common Stock Outstanding . . . . . . . . . . . . . . . . . . , 9.602.5 97 9 605 010 10.172.395 10.573.959 11.303.126 11,511,459 Earnings Per Share (d):

Per average common share . . . . . . . . . . . . $2.91 $3.08 $314 R5_4 $3 40 $2.94 Per average common share-assuming ful!

dilution . . ....... ........... $2.84 $3.00 $3.07 $3.46 $3.32 $2.88 Ratio of Earnings to Fixed Charges (e). ~4 5T 3.75 3.55 3.42 2.74 Ti2 Ratio of Earnings to Fixed Charges Plus Preferred Stock Dividend Requirements (Pre-Income Tax Basis) (f). . 3.83 3.31 2.87 2.71 2.24 1.97 Dividends Per Share on Common Stock. $1.54 $1.62 $1.68 $i.74 $1.80 $1.8375 6

m.

L\

i. ,

9 0007 196

O NOTES TO STATEMENTS OF INCOME (a) See " Rates and Regulation" under the caption " Business" for information concerning rate adjustments.

(b) The provision for Federal income tax expense for the year ended December 31,1970 was reduced by $1,450,000 ($.15 per share) as a result of adjustments of income tax provided in prior periods.

The amounts comprising income taxes are detailed in the Statements of Income. The com-ponents of the deferred income tax provisions for 1973 and twelve months ended February 28, 1974 were as follows:

February 28.1974 December 31.1973 (Unaudited)

Federal State Federal Sta*.

(Thousands of Dollars)

Excess of accelerated tax over straight-line tax depreciation . .... .... . . . ......... .... $ 5,655 $ 598 $ 6,091 $ 643 Interest component of the allowance for funds used during construction . . ...................... 5,213 569 5,386 590 Construction costs deducted currently for income tax purposes in excess of 1972 level (see Note 1 to financial statements) . . . . . . . . . . . . . . . . . . . . 1,168 128 1,470 162 9 $12.036 The provision for Federal income tax, including amounts allocated to "Other Income and

$1,295 $12,947 $1,400 Deductions", produces an effective income tax rate of 29% in 1973 and 24% for the twelve months ended February 28, 1974. This percentage is computed by dividing such Federal income tax expense by the sum of such tax expense and net income. The etTective tax rate is less than the statutory Federal income tax rate of 48% by 19% in 1973 and 24% for the twelve months ended February 28, 1974 for the reasons shown ba',w:

2/28/74 12/31/73 (Unaudited)

Equity portion of the allowance for funds used during construction, which is not taxable income. . . . . . . .. 11.5 % 13.6 %

1972 level of " flow-thru" for items capitalized on books but deducted on tax return. . . . . . . . . . . . . . . . . . . . . . . 4.9 5.7 Other . ... ....................... ............... 2.6 4.7 19.0 % 24.0 %

Under the established rate-making practices of the Commissions to which the Company is subject, it is expected that the deferred taxes not provided for currently will be collected in customers' rates when such taxes become payable.

Cash outlay for income taxes is not expected to exceed income tax expense for any of the next three years.

7

"~

0007 197 r2 % , U

O NOTES TO STATEMENTS OF INCOME--(Continued)

(c) The allowance for funds used during construction represents the estimated cost of funds applicable to utility plant in process of construction. Recognition of this item as a cost of utility plant is appropriate because it constitutes an actual cost of construction and, under established regulatory rate practices, the Company is permitted to earn a fair return on such costs and to recover them in the rates charged for utility services. Such allowance has increased substantially since 1970 principally as the result of substantial increases in the amount of construction work in progress and also as a result of an increase in the rate of such allowance from 7% to 9% per annum (as discussed below) effective January 1,1973.

Assuming that funds used to finance construction during the five years ended December 31, 1973 and the twelve months ended February 28,1974 were supplied in the same proportion as the Company's average capitalization ratios for the period (i.e., 55% from first mortgage bonds; 10% from preferred stock equity; and 35% from common stock equity), the common equity component of the allowance for funds used during construction a3 related to earnings on common stock amounted to 8.7%,5.9%,13.7%,22.49,29.6% and 34.6% for the years 1%9, 1970,1971,1972,1973 and for the twelve months ended February 28,1974, respectively.

In 1973, the Company changed its method of computing the interest component of the allowance for funds used during construction from the use of an after-tax rate to a pre-tax rate. The income effect of increasing the allowance, an item of Other Income and Deductions, from 7% to 9% has been offset by a provision for deferred income taxes which decreases Operating Income in the income statement so that the change had no effect on net income.

Beginning in January,1974, the Company changed its method of recording the allowance for funds in interim reports from a one month lag basis to a current month basis. This change does not atiect the total amount of allowance for funds used during construction in 1973 or any subsequent twelve month period.

(d) Earnings per. average common share were determined based on the weighted average number of shares outstanding during each period and after recognition in 1970 of the dividend requirements ($2R667) on the 8.80% Cumulative Preferred Stock sold in November,1970.

Earnings per average common share-assuming full dilution, were determined on the assumption that the 4H% Convertible Debentures were converted at the beginning of each period.

(e) Ratio of earnings to fixed charges is calculated as follows: (1) Earnings have been calculated by adding to operating income all income taxes and investment tax credit and other income and deductions; (2) fixed charges consists of total interest charges. The pro forma ratio foi the twelve months ended February 28,1974, giving effect to (a) annual interest requirements on long-term debt outstanding at February 28, 1974, reduced by interest on Bonds to be retired within one year; (b) guaranty of the Series A Bonds at an assumed cost of money of 79 ; (c) the Term Loan at a cost of money of 114% of an assumed prime rate of 10% ; and (d) retirement of outstanding short-term bank loans and commercial paper, would be 2.05.

A change of .10% in the assumed interest rate of the Series A Bonds would change the pro forma ratio by less than .01.

(f) Earnings and fixed charges have been determined as described in (e) above. The fixed charges component in (e) has been increased by the preferred stock dividend requirement determined on a " pre-income tax basis" computed at the effective income tax rate for the applicable periods.

8

~;i, iJt 9

~0007 198

O The pro forma ratio for the 12 months ended February 28, 1974, giving effect to all of the factors described in Note (e) above and also giving etTect to the issuance of the New Preferred Stock at an assumed annual dividend rate of 9%, would be 1.47. A change of %% in the assumed dividend rate of the New Preferred Stock would change the pro forma ratio by less than .01. A change of .10 in the assumed interest rate of the Series A Bonds would change the pro forma ratio by less than .01.

Annual dividend requirements on the New Preferred Stock will be $4,500,000.

Preliminary amounts of operating revenues, net income after dividends on preferrell stock and earnings per common share for the 12 months ended May 31, 1974, taking account of the charge against revenues described on pages 14 and 15 below, were $293,808.377, $27,697,211 and $2.34, respectively, compared to $217,992,223, $37,629,922 and $3.56 for the 12 months ended May 31,1973. For the five months ended May 31, 1974, preliminary earnings per common share dropped to $.20, compared to $1.24 for the five months ended May 31, 1973. These amounts have not been examined by independent certified public accountants but, in the opinion of the Com-pany, include all adjustments (consisting of only normal recurring accruals) necessary for a fair presentation.

The substantial increases in operating revenues since 1972 are primarily attributable to the operation of fuel adjustment clauses applicable to the Company's rates. In 1973 operating income 9 and earnings per common share declined, primarily because of increases in (a) the price of fuel running ahead of the operation of the fuel adjustment clauses, (b) interest costs, (c) preferred stock dividend requirements and (d) average common shares outstanding. In addition, the Company was prohibited from passing on fuel price increases to its customers during the 60-day price freeze in 1973 under Phase III of the Administration's Economic Stabilization Program, thus losing over $1,000,000 in revenues. The principal reasons for the declines in operating income.

net income after dividends on preferred stock and earnings per common share in the 1974 periods were a drop in kilowatt-hour sales from original projections and a sharp increase in the cost of fuel in the first five months. In the first five months of 1974, kilowatt-hour sales increased only 0.2%

from the first five months of 1973, which compares with an increase of 17.8% for the year 1973 over 1972.

This relative decline was due principally to milder than normal weather, fewer winter visitors due to the energy crisis and conservation efforts by customers. While the Company has fuel adjustment clauses covering virtually all customers, the lag between the date of increased prices and the start of recovery is approximately 60 days. See " Fuel Supply" and " Fuel Cost" under " Business" below.

9 O -

0007 199 e.# %/ 'k

i O

AREA WITHIN WHICH FLORIDA POWER CORPORATION SERVES lO ,/ '

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TARPON SPRINGS

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ST. PETERSBURG ,

( 41 10 mu O 0007 200

O BUSINESS Service Area. The Company renders electric service to more than 610,000 customers in over 100 incorporated cities and towns and in approximately 200 unincorporated towns and rural communities. The territory comprises approximately 20,600 square miles with a population of approximately 2,355.000 located in 32 counties along the Gulf Coast and through the central

" ridge" sector of the State. The more important industries in the territory include phosphate mining and processing, electronics---manufacturing and research, metal working, plastics and citrus growing and processing. Other important economic factors are the tourist business, the raising of vegetables, tobacco growing, cattle raising, dairying, lumbering, naval stores, fishing, and pulp and paper mills.

During the year 1972 the Company's average customers increased at a rate of 9% over the previous year, the fastest rate of growth of any investor-owned electric utility in the United States.

During 1973 this rate of growth was 10% and was approximately 8.5% for the first four months of 1974. This continuing surge in customer growth has put a severe strain on the Company's ability to meet the demands for electric power. Based on U. S. Census reports for 1970, the population of the 32 counties served wholly or in part increased by 513,000 during the 1960's. This 31%

increase substantially exceeded that of the United States as a whole.

Capability. The present tetal winter net dependable capability of the Company's generating facilities is 2,%7,000 kilowatts consisting of seven steam plants with a capacity of 1,943,000 kilo-watts and eighteen gas turbine peaking units with a capacity of 1,024,000 kilowatts. The Company G has contracted for 250,000 kilowatts of capacity from the Orlando Utilities Commission which began early this year and continues until the Company's Crystal River Unit No. 3 is in com-mercial operation. The ability of the Orlando Utilities Commission to deliver this energy to the Company is completely dependent upon its ability to obtain the necessary fuel oil. The net maximum hourly demand on the system prior to April 30,1974 was 2,989,000 kilowatts on Febru-ary 27,1974; the net dependable capability on that date was 2,720,000 kilowatts. Additional pur-chases from neighboring utilities assisted the Company in meeting this peak.

The nuclear-fueled Crystal River Unit No. 3 with a capacity of 825,000 kilowatts, originally scheduled for operation in April,1972, is now scheduled to be in service by the end of April 1975.

The Company is constructing two oil-fired 515,000 kilowatt units at the Anclote Plant near Tarpon Springs. The first unit is scheduled for operation in September 1974, and the other, for December 1975. In addition, the Company has scheduled for operation this summer 139,000 kilowatts of peaking capacity at the Turner Plant site and another 300,000 kilowatts of combustion turbines at De Bary in 1975.

The Company has interchange agreements with all major power suppliers in Florida with the exception of the Jacksonville Electric Authority. The Company also has an interchange agreement with The Southern Company which operates in Georgia, Alabama, Mississippi and western Florida. These agreements provide terms for the routine exchange of power and during emergency periods when there may be a shortage of power in one of the interconnected utilities.

Fuel Supply. Approximately 85% of the Company's fuel is oil, and the balance is natural gas. Residual oilis purchased under two contracts which terminate on December 31,1977. If oil 11 0 ,..

..+.

0007 20I

~ .

O quantities available under these two contracts are inadequate to nmet the Company's needs, it is expected that any deficits which may occur will be met by purchasing " spot market" oil, as was dor.e in 1973.

Starting on February 1,1974 the Federal Energy Administration (F.E.A.) instituted an allocation program for residual oil designed to insure an equitable distribution of available residual oil among all utilities using this product. To date, the allocations received by the Company together with its inventory have been adequate. liowever, the Company has no assurance that such alloca-tions will continue to be adequate.

Light oil for the Company's gas turbine peaking units is under contracts extending through 1976. Ilowever, the F.E.A.'s " Middle Distillate" Allocation Regulations have pre-empted con-tractual relationships, and the Company's allocation of these light oils is only a small fraction of its total needs. To date, the Company has been successful in obtaining all required light oils, above its allocation, from unallocated products available in the open market.

The bulk of the Company's natural gas is purchased under firm contracts terminating in 1979, while a small portion is purchased under interruptible contracts terminating in 1975. Nuclear fuel for Crystal River Unit No. 3 is under firm contracts for the first core, and 11 reloads running x through 1983.

The Company is studying the conversion of two oil-fired units at the Crystal River plant to coal. Such a conversion involves major problems, such as the obtaining of a supply of coal, transporting the supply, the cost of ccaverting the facilities and the effect on the system's reli-ability while the units are out of service during conversion. Thus,it would be several years before the conversion of these units could be efIectuated.

Fuel Cost. The cost of the Company's residual oil boiler fuel is tied by contract to certain New York liarbor posted prices. These posted prices are very largely determined by export taxes and royalties imposed by oil exporting countries in the Near East, Africa and South America.

The Company's cost of this oil increased from $1.68 per barrel in December 1972 to $9.41 in February 1974 for 60% of the supply and to $9.71 for the balance. Prices remained at these levels through April of this year, but in the last week in May were i.. creased to $9.80 per barrel for 60% of the supply and $10.06 per barrel for the balance. Under terms of the contracts with gas suppliers the cost of gas increased from 34.8( per million BTU in December 1972 to a peak of $1.65 in March 1974 and declined to $1.47 per million BTU in May 1974.

Transmission and Distribution System. As of February 28,1974, the distribution of electric energy of the Company was made through 236 substations with an installed transformer capacity of approximately 14,367.000 KVA. Of this capacity, approximately 9,053,000 KVA is located in transmission substations and 5,314,000 KVA in distribution substations. The Company has approximately 3,603 circuit miles of transmission lines of which approximately 2,100 circuit miles are operated at 500,000,230,000 and 115,000 volts and the balance at 69,000 volts, and approximately 21,700 circuit miles of distribution lines operating at various voltages ranging from 120 to 25,000 volts.

Environment. As of the date of this Prospectus, there is no pending litigation or regulatory proceeding which threatens continuous operation of the Company's present generating capability.

For the past twenty years it has been the policy of the Company to utilize the latest proven technology to reduce pollution to the lowest practical level.

12 O

0007 -202

O The Company's proceedings before the Atomic Energy Commission for an operating license for the Crystal River nuclear generating unit involve the National Environmental Policy Act of 1969. Under the Act the Commission is required to prepare a statement concerning the environ-mental impact of the unit and its operations. In this connection, the Company submitted an environmental impact report to the Commission on January 4,1972, and on May 23,1973, the Commission issued its final environmental impact statement. The statement does not require any modification of the nuclear generating unit as presently designed. Additional environmental studies are to be conducted to determine whether alternative cooling systems might be required.

These studies and determinations will be completed by November,1974. However, the results of these studies should not cause any delay in the operation of this unit.

Permits to build the oil-fired units at the Anclote Plant have been received from all govern e mental agencies involved. The Company applied for an operating permit with the U. S. Environ-mental Protection Agency in December,1972. Permission has been obtained to begin operating the plant as presently designed, and it is anticipated that the operating permit will be granted in the near future. Recent communications from the U. S. Environmental Protection Agency and the Florida Department of Pollution Control indicate their intention to require the instr.lla-tion of cooling towers for the Anclote Plant within the next three years. The need for coc!ing towers was the principal issue at public hearings on May 2 and 3,1974, for consideration of ae operating permit issuance by the Environmental Protection Agency. It was the Company's position that no nnal decision regarding the need for cooling towers should be made at this time. Its research studies to be continued for two years after start-up will document what, if any, damage 9 has occurred to the marine environment. If the studies show significant damage, then the Company would voluntarily install cooling towers. Should the Environmental Protection Agency and the Florida Department of Pollution Control require cooling towers prior to the completion of the research studies, the Company intends to seek administrative and judicial review of their decisions.

Cooling towers would cost approximately $15,000,000 to install at Anclote.

Under compliance plans filed with State and Federal agencies, the Company had planned to change from high sulfur (2.6%) residual oil to a lower sulfur (1%) oil at five of its plants in January 1974 and at the balance of its plants in 1975. Provision had been made for this change in its two prime residual oil supply contracts. Under a regulation of the F.E.A. this conversion to lower sulfur fuels is prohibited for at least one year.

In the event that low sulfur fuel oil is not available or allocated, existing oil-fired generating units could require modification after July 1,1975 to meet the air pollution emission standards established by the State for compliance with Federal ambient air quality standards.

Federal and State environmental regulations and requirements described above, as well as any such future regulations and requirements, may resuit in additional expenditures for pollution control equipment. Such expenditures are potentially significant particularly with respect to air and thermal pollution control equipment. Any increases in the cost of fossil fuel as a result of such regulations and requirements would be recovered under the Company's fuel adjustment clauses in its rate schedules.

Competition. In addition to three investor-owned electric systems that are contiguous to the Company's system at various locations, there are nineteen municipalities rendering electric service in the general area served by the Company. Ten purchase their entire requirements from the 13 0 0007 20f

t. "

.c

O Coi.pnv, two purchase a portion of their requirements from the Southeastern Power Administra-tion and their excess requirements from the Company, and the other seven own and operate their own .lectric generating plants. The Company has interconnection agreements with each of the generating municipalities. The Company also sells electric energy to nine rural electric coopera-tives for resale. The Company has a number of retail territorial agreements with these electric suppliers, both investor-owned and publicly-owned, for the purpose of preventing uneconomic and wasteful duplication of facilities. Other sources of energy in competition with electricity in the general area served by the Company are natural gas, liquefied petroleum gas and fuel oil.

Rates and Regulation. The Company is subject to regulation by the Florida Public Service Commission with respect to rates, services, accounting, the issuance of securities, and other mat-ters. Certain activities of the Company are subject to the jurisdiction of the Federal Power Com-mission under the Federal Power Act.

On January 28, 1974, the Company filed concurrently two petitions with the Florida Public Service Commission seeking retail rate ir, creases of approximately $43,600,000.

The first of these, a request for interim rate relief, was granted on April 5,1974. The Com-mission allowed tne Company to increase rates by 5.7% which will result in additional gross revenues of $12,120,919, based on the twelve months ended December 31,1973. The Company had requested $12,348,975. These rates were effective on all bills rendered for meter readings on or after April 10, 1974.

The second petition, to provide an additional $31,242,000 in revenues on the basis of projected 1974 operations, requests a rate of return in a zone of reasonableness of 8.52% to 8.74% when related to a projected year-end, net-investment rate base. Prior to the hearing on this petition, the Company expects to revise the ame mt of revenue relief sought to reflect actual results at that time. Further, if the erosion in earnings cannot be reversed with present rates, the Company plans to seek additional interim relief.

On November 12,1971, the Company filed an application with the Federal Power Commission to increase rates for wholesale electric service to nine rural cooperatives and twelve municipal customers which would increase annual revenues approximately $3,150,000 based on the test year 1970. On June 12,1972, the Company began collecting the new rates under bond subject to possible refund at the conclusion of the proceedings. Subject to approval by the Federal Power Com-mission, the Company has settled with these wholesale customers for approximately $2,000,000 based on the test year 1970. The settlement agreements have been accepted by the Administra-tive Law Judge and forwarded to the full Commission, with recommendations for approval. The Company's revenues will not be affected by the settlement agreements.

In 1%2 the Florida Public Service Commission required the Company to bill its phosphate customers under the lower of the Company's rate or the rate available from a regulated, investor-owned electric utility serving phosphate customers. This is known as the " favored nation" clause.

On March 1,1974, the Company filed a petition with the Florida Public Service Commission seeking authority to eliminate from the Company's tariff the favored nation clause.

In April these customers were billed an aggregate additional amount of $605,799 as a result of the Company's challenging the applicability of the favored nation clause. The phosphate customers refused to pay the additional amount.

14 m

0007 204

O At a hearing before the Florida Public Service Commission on May 28, 1974, the Company and the phosphate customers agreed that the " favored nation" issue shouid be decided as part of the Company's petition to provide additional revenues on the basis of projected 1974 operations.

The Company has agreed to withdraw the April billing and not to make an increased billing for May. The phosphate customers have agreed to accept the additional billings beginning in June, subject to refund, if any, after the Commission renders its decision in the rate proceeding. The

$605,799 billed in April and uncollected was charged against the Company's revenues in May.

Pending Legal Proceedings. On August 13, 1968, the City of Gainesville filed a Complaint in the U. S. District Court for the Middle District of Florida, against the Company and Florida Power & Light Company as co-defendants alleging violations of Sections 1 and 2 of the Sherman Antitrust Act for refusing to interconnect the electrical system of either defendant with that of the City. In S(ptember,1973, the City and the Company reached agreement for settlement of this litigation. Under the terms of the Settlement Agreement the Company will pay the City

$750,000 and will sell to the City its distribution facilities, comprising approximately 1,775 customer accounts, located within the greater urban area of Gainesville, for $798,000. In addition, effective September 1,1973, the Company will accrue revenues for the City from the customers to be transferred. These revenues will be offset by an estimated amount to cover the Company's cost of the power and will net approximately $25,000 per month to the City. Since the Settlement Agreement contemplates the transfer of customers to the City, the Florida Public Service Com-mission hr.d to approve the transfer before the Settlement Agreement became final. Hearings were held before the Commission on January 9,1974, and the Commission issued an Order on G February 6,1974, approving the transfer. On February 18, 1974, the Commission decided to re-consider its February 6,1974 order of approval by setting the matter down for a second hearing on April 9,1974. On May 8,1974, the Commission reinstated the order of February 6. The transfer of customers has been completed and appropriate pleadings for dismissal of this litigation are being prepared for submission to the U. S. District Court. Net cost to the Company of the settlement of

$946,388 is being charged to expense over a period of eight months beginning in May 1974.

15 O

w- . ~0007505 t ;; ., i-

O OPERATING STATISTICS 1969 1970 1971 1972 1973 Electric Energy. Net (Thousands of KWH):

Generated-Steam ... .. .............. ......... 8,247,506 9,529,843 10,388,532 11,580,100 12.206,871 Ilydro ........... ............. ..... 18,769 29,403 - - -

Other . .. ....... ........ ......... 17.275 43,846 126,686 421,233 906,694 Purchased and Interchange (Net)........ 429,652 252,747 445,669 676,342 1,703,416 Total ....................... 8,713,202 9.855,839 10,960,887 12,677,675 14,816,981 Less Company Use and Losses. .. . ... .. . . 625,772 826,817 877,722 1,155,587 1,243,704 Total Energy Sold. . . . . . . . . . . . 8,087.430 9.029,022 10,083,165 11.522,088 13,573,277 Electric Sales (Thousands of KWH):

Residential .. .. . .. ... .. . ....... 3,196,126 3,696,114 4.133,335 4.717,235 5,793,242 Commercial ........ .. ...... ..... 1,627,771 1,844,192 2,134,106 2,403,398 2,836,292 Industrial . .. .......... ..... .... 1,891,143 1,912,379 2,029,685 2,196,766 2,349,572 Street Lighting . . .. . .. ............. 60,044 63,613 67.925 71.721 76,563 Other Sales to Public Authorities........ 243,946 260,832 285,713 304,681 326,170 Other Electric Utilities. . . . . . . . . . . . . . . 1,068,400 1,251,892 1,432,401 1,828,287 2.191,438 Total Energy Sold. . . . . . . . . . . . . 8,087.430 9,029,022 10,083,165 11,522.088 13.573,277 Number of Customers (Year End):

R esid e n tial . . . . . . . . . . . . . . . . . . . . . . . . . . 387,193 413,786 445,922 487,173 535,199 Commercial ... ........... ........... 44,113 47.028 51,108 55,757 60,138 Industrial . ........................... 1,229 1,263 1,346 1,422 1,479 S treet Lightin g . . . . . . . . . . . . . . . . . . . . . . . . . 649 893 1,022 1,151 1,313 Other Sales to Public Authorities..... .. 125 126 127 128 129 Other Electric Utilities. . . . . . . . . . . . . . . . 85 93 99 106 109 Total Customers (Year End). . 433,394 463.189 499.624 545,737 598,367 Operating Revenues:

Resid en tial . . . . . . . . . . . . . . . . . . . . . . . . $ 71,031,627 $ 78,863,750 $ 87.390,135 $ 98.649,161 $125,544,921 Commercial . .. ... .......... ....... 38,744,279 41,101,035 46,254,202 51,846,900 63,674,552 I n d us trial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,226,603 19,670,752 20,951,590 23,852,318 28,253,953 Street Lighting . . ...... ........... 1,197,965 1,309,044 1,452,612 1,590,628 1,820,258 Other Sales to Public Authorities. . ... 2,899,443 3,123,935 3,512,925 3,738,111 4,540,065 Sales to Other Electric Utilities. ......... 9,464,567 11.391,576 13,416,344 18,548,292 26,056,375 O ther Electric Revenues. . . . . . . . . . . . . . . . . 2.175,381 2.684,480 3.561,811 3,631,456 5,154,444 To tal . . . . . . . . . . . . . . . . . . . . . . . . $144,739,865 $158,144,572 $176,539,619 $201,856,866 $255,044,568 Average Annual Use Per Residential Customer:

K W H ............................... 8,666 9,415 9,814 10,277 11,459 Revenue ............................. $192.60 $200.88 $207.50 $214.92 $248.34 Average Revenue Per KWH:

Rc sid ential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.22t 2.13t 2.11t 2.09t 2.17d Com mer cial . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.38t 2.23t 2.17s 2.16t 2.24(

I ndu strial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.02t 1.03t 1.03t 1.09s 1.20f 16 u . .

0007 206

O DESCRIPTION OF NEW PREFERRED STOCK The following statements are summaries of certain provisions of the Preferred Stock contained in the Charter and resolutions of the Board of Directors of the Company.

Dividend Rights. Dividends cn the New Preferred Stock at the rate shown on the front cover are payable quarterly on February 15, May 15, August 15, and November 15. The dividends are cumulative from June 18,1^74; the first dividend (covering the period from June 18,1974 to August 15, 1974) will be paid on August 15, 1974 and will, therefore, be less than the regular quarterly dividend.

Voting Rights. If and when dividends payable on any series of Preferred Stock shall be in default in an amount equivalent to four full quarterly dividends and until all such dividends in default have been paid, the holders of the Preferred Stock of all series, voting as a class, and without regard to series, will be entitled to elect the smallest number of directors necessary to constitute a majority of the full Board of Directors. The holders of Preferred Stock are not entitled to vote in respect of any other matters except those in respect of which voting rights cannot be denied or waived under some mandatory provision of law, and except that the Charter contains provisions to the general etTect that so long as any shares of Preferred Stock are outstand-ing such shares shall be entitled to vote on certain matters affecting the rights and preferences of such Preferred Stock relating to (i) an increase in the authorized number of shares of Preferred Stock; (2) merger or coraolidation with or into any other corporation; (3) issuance of any additional indebtedness maturing more than twelve months or any additional Preferred 9 Stock unless immediately after such issuance the aggregate of the principal amount of indebted-ness then maturing more than twelve months and the par value of the Preferred Stock then outstanding shall be less than 757o of the Total Capitalization of the Company; (4) changes in the provisions of the Preferred Stock; (5) authorization of stock ranking superior to or on a parity with the Preferred Stock; and (6) issuance of Preferred Stock unless the net earnings (as defined) permit such issue or unless the r ?gregate of the capital applicable to the Common Stock and the surplus of the Company shall be not less than the amount payable upon involuntary dissolution to the holders of the Preferred Stock to be outstanding immediately after the proposed

_ issue of such additional Preferred Stock. See "Use of Proceeds and Construction Program" above.

A majority vote of the Preferred Stock is required with respect to 1, 2, 3 and 6 above and a two-thirds vote with respect to 4 and 5 above.

Liquidation Rights. The amount per share payable on the Preferred Stock of each series on any voluntary or involuntary liquidation shall be the amount fixed for such series. The amount per share payable on the New Preferred Stock in the event of any voluntary liquidation shall be the amount per share at which such share could be option illy redeemed, and in the event of any invol-untary liquidation shall be $100, together with an amount equal to all unpaid dividends thereon.

Redemption. The Company may redeem the whole or any part of any series of Preferred Stock at any time or from time to time at the redemption prices fixed for the particular series, upon at least thirty days' notice. There is no provision restricting the repurchase or redemption of Preferred Stock by the Company when dividends or sinking fund requirements are in arrears.

The New Preferred Stock will be redeemable at the redemption prices shown on the Prospectus cover page relating to the New Preferred Stock; provided, however, prior to August 15,1979 no New Preferred Stock may be redeemed, directly or indirectly, from the proceeds of or in anticipa-17 0007 207' s,. Lo

O tion of any refunding operation involving the issuance of common stock, or the incurring of debt or the issuance of any other security which has an interest or dividend rate less than the dividend rate of the New Puferred Stock.

The New Preferred Stock #1! also be redeemable at any time on and after August 15,1975 for the mandatory sinking i..._ e,ee " Sinking Fund" below) at the sinking fund redemption price of $100 per share plus accrued and unpaid dividends.

Sinking Fund. The Company (except to the extent prevented from doing so by the restric-tions referred to above) as a mandatory sinking fund shall acquire, either by redemption at the sinking fund redemption price of $100 per share plus accrued and unpaid dividends or by purchase in such manner as the Board of Directorr may determine from time to time at a price per share not exceeding the sinking fund redemption price, .ad shall retire, within each twelve months' period commencing with the twelve months' period enditg August 15, 1975, 15,750 shares of New Pre-ferred Stock. If the Company shall be prevented by the restrictions referred to above or for any other reason from acquiring during any twelve months' period the number of shares of New Pre- -

ferred Stock which in the absence of such restrictions it would be required to acquire during such period, the deficit shall be made good in the first succeeding twelve months' period in which the Company shall not be prevented by such restrictions from acquiring shares of New Preferred St ack.

Any shares of New Preferred Stock redeemed or purchased by the Company at not exceeding the sinking fund redemption price in any such twelve months' period may be credited on the amount required to be acquired for the mandatory sinking fund in one or more of the next follow-ing twelve months' periods. Shares applied to meet sinking fund obligations shall become author-ized but unissued shares of Preferred Stock but may not be re-issued as shares of New Preferred Stock.

Liability for Further Calls or Assessments. All outstanding shares of the Preferred Stock are, and upon issuance against full payment of the agreed price, the shares of the New Preferred Stock will be, fully paid and non-assessable. As to each share of the New Preferred Stock, the sum of $100 per share will be credited to the Preferred Stock capital account and any excess to premiums on capital stock.

Other Rights. The holders of the Preferred Stuck have no preemptive rights. There are no conversion rights and there is no sinking fund for any existing series of the Preferred Stock other than the New Preferred Stock, though such provision may be made for future series.

LEGALITY Legality of the New Preferred Stock will be passed upon for the Company by S. A. Brandi-more, Esq., General Counsel for the Company, and for the Underwriters by Shearman & Sterling, 53 Wall Street, New York, N. Y. _

EXPERTS The financial statements included in this Prospectus and in the Registration Statement have been examined by Arthur Andersen & Co., independent certified public accountants, as indicated in their report with respect thereto, and art included herein in reliance upon the authority of said firm as experts in giving said report.

The statements made under the headings " Description of New Preferred Stock", "The Company" and " Bus. ness" have been reviewed by S. A. Brandimore, Esq., General Counsel for the Company. All of such statements insofar as they relate to matters of law or express legal conclusions are made herein in reliance upon his opinion as an expert and upon his authority as an expert.

18 O

r o 0007 208'

O REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To Ft.ouDA Powr.m ConronAnon:

We have examined the balance sheet of Florida Power Corporation (a Florida corporation) as of December 31,1973, and the related statements of income (included under the heading " State-ments of Income" herein), retained earnings, premium on common stock and sources of funds used for construction for the five years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the accompanying balance sheet and statements of income, retained earnings, premium on common stock and sources of funds used for construction referred to above present fairly the financial position of Florida Power Co poration as of December 31,1973, and the results of its operations and the sources of funds used for construction br the five years then ended, in confortnity with generally accepted accounting principles consistently applied during the periods.

ARTHUR ANDERSEN & CO.

O Tampa, Florida, January 30, 1974.

19 O

v 0007 209

O FLORIDA POWER CORPORATION BALANCE SHEETS December 31, 1973 and February 28, 1974 ASSETS February 28, December 31, 1974

_1973 (Unaudited)

(Thousands of Dollars)

I'1ectric Plant (Note 1):

In service and held for future use. .. . .... ... . .. .. . ..... .. $ 917.832 5 922,113 Less-Accumulated provision for depreciation.... .... .. ... ... ...... 189.993 194.431

$ 727,839 $ 727.682 Construction work in progress. .. ...... . . .. ...... .. . . .. 387.894 422,275 Nuclear fuel assemblies. . . . .. . ........... .. ... .. .... .......... 26.760 28.756

$1,142.493 $1.178.713 Nonutility P operty ($3,028,000 and $3,022,000) and other investments, at cost . $ 3,167 $ 3.182 Current Assets:

Cash .. . . . ... .. .. ......... .................... .. $ 8,909 $ 9,669 Specia deposits . .. . . . .. .. . .......... .. . .. .... 424 452 Temporary cash investments, held to redeem First Mortgage Bonds due January 1, 1974 .. .. ... ..... ....... ....... ....... ....... .. .... . .. .. 14.201 -

Accounts receivable, less reserves of $300,000 and $244,000 . 18,635 16,890 Accrued income tax benefits . . .. - 1,743 Fuel, at average cost. . . .. . .. 15.848 18.585 Materials and supplies, at average cost.. . . ..... .. . ... ...... .. ... 14,423 17.840 Prepayments . . . . .. . .......... .... .... ........ 688 727

$ 73,128 $ 65,906 Deferred Charges:

Unamortized debt expense . . . $ 3.851 3 4,403 Other . . .. . . . .. .. . . . 5.435 5.795

$ 9.286 $ 10,198

$1.228.074 $1.257.999 The notes to financial statements are an integral part of these balance sheets.

20 c, . o O

a. s. "-

0007 210~

O FLORIDA POWER CORPORATION BALANCE SHEETS December 31, 1973 and February 28, 1974 LIABILITIES February 28, December 31, 1974 1973 (Unaudited)

(Thousands of Dollars)

Capitalization:

Common stock, par value $2.50 per share, authorized 15,000,000 shares, outstanding 11.823,959 shares (Notes 2 and 3) $ 29,560 $ 29,560 Premium on common stock. . .. . . ..... .... .... .. ..... .. 155,487 155,487 Capital surplus (No change during the periods).. .. . . ..... . ....... 1,369 1,369 Retained earnings (Note 4). . . . .. ..... .... ........ .. .... 160,589 156,622

$ 347.005 $ 043.038 Preferred stock, cumulative, par value $100 per share (Note 2) . . . . . . . . . . . . . . . . . . . . 134,462 134,462 Preference stock, par value $100 per share, authorized 1,000,000 shares, none out-standing ... . . . ... ... ....... ............. ......... . - -

Long-term debt (Notes 1 and 3).

O

.. . . .. . 586,971 587.717 Total capitalization . ... ....... ............ .. ............. . $1.068,438 $1.065.217 Current Liabilities:

Accounts payable . . . . ... .. . ... . .. ............ ...... ...... $ 11,434 $ 11,182 Customers' deposits . .. .... .. .. .... ........ ............. 10,400 10,673 Accrued income taxes (Note 1). . .... ... . .. ... . . ........ 3,761 -

Accrued other taxes . . . .. . . .. . ....... .. . ....... 6.667 7.904 Accrued interes' . .... .. . .. .. . .... . . ... .. 7,064 11,619 Dividends declared on common stock , ... . .. .. -

5.764 Other . ... . .

.. .. ........ .. .. ... ....... ......... . .... 4,937 5,204

$ 44,263 $ 52,346 Long-term deb t, due within one year (Note 3) . . . . . . . . . . . . . . . . . . . . . . ... ...... 14,201 -

Bank loans (Note 7).. . . ..... . ... ............ .. .. ............ 15,842 39,241 Comm e rcial pa p er ( N o te 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 22.000

$ 84,306 $ 113,587 Deferred Credits. Reserves. Etc. (Note 1):

Accumulated d eferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... $ 59,525 $ 62,158 Accumulated d e ferred investment tax credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,253 15,469 Other .. .......... ....... ....................................... ... . 1,552 1.568

$ 75.330 $ 79,195 Commitments and Contingent Liabilities (Notes 5 and 6)

$1.228.074 $1,257,999 The notes to financial statements are an integral part of these balance sheets.

21 O .

0007 211 k

k'. '*

O FLORIDA POWER CORPORATION STATEMENTS OF RETAINED EARNINGS AND PREMIUM ON COMMON STOCK For the Five Years Ended December 31,1973 and the Twelve Months Ended February 28,1974 Twelve RETAINED EARNINGS Months Ended Year Ended December 31 February 28,1974 1969 1970 1971 1972 '973 (Unaudited)

(Thousandsof Dollars)

Balance at Beginning of Period.. . .. . . . ... ... S 84.141 $ 97,301 $111,250 $125,095 $143.805 $145,450 Add:

Net income .. . ... .... .......... $ 29,460 $ 31,294 $ 35,232 3 42.007 $ 44,133 $ 40,201 Less--Dividends on preferred stock at annual rates per share indicated in the series desig.

nations---

4.00% Series ........................ 160 160 160 160 160 160

_ 4.40% Series . ... . .. . ... ... 330 330 330 330 330 330 4.58% Series . .. . . ........ .. 458 458 458 458 458 458 4.60% Series . . . ..... ... ... 184 184 184 184 184 184 4.75% Series 380 380 380 380 380 380 8.80% Series .... . ..................

..... ......... - - 1,775 1,760 1,760 1,760 7.40% Series . .... ................ - - - 1,252 2,220 2,220 7.76% Series . .. .. . - - - -

226 873 Net incoma -ft-r Sv;dends on pre-ferred stock .. ............. $ 27,948 $ 29,782 $ 31,945 $ 37,483 $ 38.415 $ 33,836 Deduct:

Cash dividends on common stock; quarterly dividends equivalent to the following annual rates--

$1.52 per share . ..... .... . . $ 10,947 $ -

S - $ - $ - $ -

1.60 per share . . . . . . . . . . . . . . . . . . . . . . 3,841 11.526 - - - -

1.68 per s hare . . . . . . . . . . . . . . . . . . . . . . . . - 4,035 17,360 - - -

1.74 per share . . . . . . . .............. - - - 18,399 - -

1.80 per share ..... . . . .. ......... - - - - 20,158 15.400 1.95 per share . . . ..... .. - - - - - 5,764 Expense of issuing preferred stock ....... .. - 272 - 374 507 534 Expense of issuing common stock ... . .... - - 740 - 966 966

$ 14.788 $ 15,833 $ 18,100 $ 18.773 $ 21,631 S 22.664 Balance at End of Period (Note 4) . ....... . S 97.301 1111.250 $125,095 $143.805 $160,589 $156.622 PREMIUM ON COMMON STOCIC Balance at Beginning of Period . . . ........ $ 68,135 $ 68,137 $ 68,359 $109,706 $109,706 $109,706 Add:

Premium resulting from conversion of 4H%

convertible d ebentures . . . . . . . . . . . . . . . . . . 2 222 253 - - -

Premium resulting from sale of 961,269 shares of common stock . . . . . . . . . . . . . . . . . . . . . . - -

41.094 - - -

Premium resulting from sale of 1,250,000 shares of common stock , . . . . . . . . . . . . . . - - - - 45,781 45.781 Balance at End of Period .. .... ..... .... J_68.137 $ 68.359 $109,706 $109,706 $155.487 $155.487 The notes to financial statements are an integral part of these statements.

22 O

Md' 0007 212

O FLORIDA POWER CORPORATION STATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION For the Five Years Ended December 31, 1973 and the Twelve Months Ended February 28,1974 Twelve Months Ended Year Ended December 31, February 28, 1974 1969 1970 1971 1972 1973 (Unaudited)

(Thousands of Dollars)

Socacts or Foxos:

Funds Derived from Operations-Net income after dividends on preferred stock $27,943 $29,782 $ 31.945 $ 37.483 $ 38,415 $ 33.836 Less-Dividends on common stock. .. . 14,783 15.561 17.360 18,399 20,158 21.164 Earnings retained in the business. .. $13,160 $14,221 $ 14,585 $ 19.084 $ 18,257 $ 12,572 Principal non-cash items-Provision for depreciation. . . .. ... . 16,301 18,316 20.164 22.790 24,761 25.297 Provision for deferred income taxes and investment tax credit (net). . .. 4.057 2,748 3,930 5,678 15,377 17.113 Common equity component of the allow-9 ance for funds used during construction Net (Increase) De. crease in Working Capital (exclusive of short-term borrowing and (2,443) (1,764)

$31,075 $33,521 (4.364) (8,397)

$ 34,315 $ 39,155 (11,379)

$ 47.016 (11.700)

$ 43.382 temporary cash investments)(a). .. . $ 4,555 ($ 4,195) ($ 4,943) $ 4,700 ($ 13,946) ($21,256)

Funds from Financing and Other Sources-Proceeds from sale of first mortgage bonds. $35,173 $40,307 3 50,430 $100,188 $130,720 $130.660 Proceeds from sale of preferred stock.. ... - 19,720 - 30,035 50,013 49,986 Proceeds from sale of common stock, -

42,758 47,940 47.940 Net increase (decrease) in short. term bor-rowing . . .. . ........... (2.300) (3,525) 31.138 5.339 (16,810) (1.757)

Temporary cash investments . . . . . . . . . . . . . . -

(6,000) 6,000 -

(14,201) -

First Mortgage Bonds retired . . ...... ... - - - - -

(14.201)

Bonds reacquired for sinking fund.......... (6,115) (4,880) (5,331) (4.945) (4,592) (4.592)

Other sources (net)(b).... . ... ... 5,536 5,231 6,468 11,558 14.732 18.493

$32,294 $50,853 $131,463 $142,175 $207.802 $225.529 Fuxos Usro ron Consrauertox(b) . . . ... ... . ... $67.924 $80.179 $160.835 $186.030 $240,872 $248.655 (a) The changes in individual accounts classified as current assets and current liabilities are not material in relation to funds used for construction.

(b) Includes the common equity component of the allowance for funds used during construction (see Note (c) to Statements of Income).

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

23 0007 213 y- .,o

O FLORIDA POWER CORPORATION NOTES TO FINANCIAL STATEMENTS (Including Notes Applicable to Unaudited Financial Statements)

(1) Summary of Significant Accounting Policies-Ekctric Plant-Electric Plant construction cost includes payroll and related costs such as taxes, pensions and other fringe benefits, general and administrative costs and an Allowance for Funds Used During Construction (see Note (c) to Statements of Income).

Substantially all of the Company's Electric Plant is pledged as collateral for the First Mortgage Bonds.

Electric Plant has been restated at December 31, 1973 to comply with Federal Power Com-mission Order No. 490. This Order states that Contributions in Aid of Construction should be _

reclassified to Electric Plant in Service, Accumulated Provision for Depreciation and Construction Work in Progress.

Depreciation and Maintenance-The Company provides for the depreciation of the original cost of properties over their estimated useful lives on a straight-line basis. The annual provisions for depreciation, expressed as a percentage of the average balances of depreciable plant, for the five years ended December 31, 1973 and for the twelve months ended February 28,1974, have ranged from 2.94pc to 3.22c/c.

The Company charges maintenance with the cost of repairs and minor renewals of property, the plant accounts with the cost of renewals and replacements of property units and the deprecia-tion reserve with cost, less net salvage, of property units retired.

Income Taxes-Deferred income taxes result primarily from the use of liberalized depreciation and accelerated amortization for income tax purposes and from the deferral of taxes beginning in 1973 on the interest component of the allowance for funds used during construction (see Note (c) to State-ments of Income). These deferred taxes are credited to " Accumulated Deferred Income Taxes" As income taxes become payable as a result of prior years' deductions of the items mentioned above for income tax purposes, the related accumulated deferrals are credited to income. The Com-pany elected to use the class life asset depreciation range system for income tax depreciation beginning in 1971.

Included in electric plant are certain pension costs, sales and use taxes and payroll taxes applic-able to the construction activity. The Company has followed the practice of deducting these con-struction related costs for tax purposes in the period incurred and " flowing-thru" all of the resulting tax benefit to income in the same period. On July 23, 1973, the Florida Public Service Commission ordered the Company to limit the amount of " flow-thru" tax benefit to the lesser of either the actual current year's net amount of book-tax timing ditTerences or to the net amount

" flowed-thru" for the year ended December 31,1972. In compliance with this order, the Company is recording deferred taxes on the excess " flow-thru" resulting from capitalization of certain pension costs, sales and use taxes and payroll taxes. The amounts of such deferrals during 1973 and for the twelve months ended February 28,1974 were $1,296000 and $1,632,000 respectively.

24 m - .

O s , , .,t 0007 2 -

O NOTES TO FINANCIAL STATEMENTS-(Continued)

The investment tax credits, including job development investment tax credits, have been deferred and are being amortized through credits to income over the lives of the related property.

Pension Costs-The Company has a retirement plan for substantially all employees under which the costs of retirement allowances are measured by current service. The Company's policy is to fund pension costs accrued. Pension costs for the five years ended December 31, 1973 and twelve months ended February 28,1974 were $2,271,000, $2,506,000, $2,662,000, $2,790,000, $3,420,000 and

$3,580,000 respectively. Of these amounts, $1,044,000 in 1969,1970,1971,1972 and $1,049,000 in 1973 and for the twelve months ended February 28, 1974 apply to pensions measured by past service.

Effective January 1,1973, the Company amended the plan by changing certain actuarial assump-tions, changing the plan from a contributory to a non-contributory plan and adopting a new 25-year amortization period for the unfunded past service liability. The effect of this change is not material in relation to net income of the Company. The unfunded past service liability of the plan was approximately $13,503,000 at December 31,1973 and $13,429,000 at February 28, 1974.

The assets of the plan exceed the actuarially computed value of the vested benefits at Decem-ber 31,1973.

(2) Common and Preferred Stock:

e A statement of cumulative preferred stock, par value $100 per share, authorized 1,500,000 shares, for both December 31,1973 and February 28,1974 (unaudited), is presented below:

Shares Thousands Redemption Series Outstanding of Douars Prics 4.00 % . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 $ 4,000 $104.25 4.40 % . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 7,500 102.00

4. 58 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 10,000 102.50(a) 4.60 % . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 4,000 103.25 4.7 5 % . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 8,000 102.00 7.40 % . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 30,000 108.77(b) 7.76 % . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 50,000 108.80(c) 8.80 % . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 20,m 0 110.00(d) 1,335,000 $133,500 Premium on preferred stock. . . . . . . . . . 962

$134,462 (a) Redemption price decreases to $101.00 after November 15, 1977.

(b) Redemption price decreases to $106.92 after August 15,1977, to $105.07 after August 15, 1982, to $103.." after August 15,1987, and to $102.48 after August 15, 1992.

(c) Redemption price decreases to $106.86 after February 15,1979, to $104.92 af ter February 15, 1984, to $102.98 after February 15,1989, and to $102.21 after February 15, 1994.

(d) Redemption price decreases to $107.00 after November 15,1975, to $104.00 after Novem-ber 15,1980, and to $101.00 after November 15, 1985.

25 9 dOO72i5

. J-

O NOTES TO FINANCIAL STATEMENTS-(Continued)

On March 28, 1974, the stockholders approved an increase in the authorized Common Stock from 15,000,000 shares to 30,000,000 shares and in the authorized Preferred Stock from 1,500,000 shares to 4,000,000 shares.

(3) Long-Term Debt:

A statement of long-term debt at December 31,1973 and February 28,1974,is presented below.

February 28, December 31, 1974 1973 (Unaudited)

First mortgage bonds- (Thousands or Dollars) 3H % Series, due January 1,1974. . . . . . . . . . . . . . . . . . . . . . . . $ 11,391 $ -

2M% Series, due January 1,1974. . . . . . . . . . . . . . . . . . . . . . . . . 2,810 -

3% % Series, due November 1, 1978. . . . . . . . . . . . . . . . . . . . 5,971 5,971 3H % Series, due J uly 1, 1981. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,835 9,835 3H % Series, due November 1, 1982. . . . . . . . . . . . . . . . . . . . 10,538 10,538 3% % Series, due November 1, 1983. . . . . . . . . . . . . . . . . . . 7,025 7,025 3% % Series, d ue July 1, 1984. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,430 8,430 3% % Series, d ue July 1, 1986. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,050 14,050 4% % Series, due J uly 1, 1988. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,438 18,438 4M % Series, due October 1,1990. . . . . . . . . . . . . . . . . . . . . . . . . 19,312 19,312 4 K % Series, due M ay 1, 1992. . . . . . . . . . . . . . . . . . . . . . . . . . . 20,188 20,188 4% % Series, due April 1, 1995. . . . . . . . . . . . . . . . . . . . . . . . . 25,800 25,800 4M% Series, due November 1,1995. . . . . . . . . . . . . . . . . . . . . . 21,500 21,500 6% % Series, due August 1, 1997. . . . . . . . . . . . . . . . . . . . . . . . . 22,375 22,375 7 % Series, due November 1, 1998. . . . . . . . . . . . . . . . . . . . . . 27,375 27,375 7%% Series, due August 1, 1999. . . . . . . . . . . . . . . . . . . . . . . 35,000 35,000 9 % Series, due November 1, 2000. . . . . . . . ..... ..... 40,000 40.000 7M % Series, due October 1, 2001. . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000 7H % Series, due J une 1, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000 7M % Series, due November 1, 2002. . . . . . . . . . . . . . . . . . . . . 50,000 50,000 7M % Series, due June 1, 2003. . . . . . . . . . . . . . . . . . . . . . . . . 60,000 60.000 8 % Serica. due December 1, 2003. . . . . . . . . . . . . . . . . . . . . . . 70,000 70,000 Unamortized premium being amortized over term of bonds.. 6,149 6,895 Less:

Par value of bonds reacquired to meet cash sinking fund re quire me n ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,862) (4,862)

Long-term debt due within one year. . . . . . . . . . . . . . . . . . . (14,201) -

$567,124 $567,870 Convertible debentures,4H% Series, due August 1,19S6. . . .. . 19,494 19,494 Other long-term debt at 7%% due August 30, 1982. . . . . . . . . . . 353 353

$586.971 $587.717 At December 31, 1973 and February 28. 1974 there were 401,938 shares of Common Stock reserved for conversion of the 4Hg Convertible Debentures, due 1986, at the rate of one share of 26

.'1 .

0007b6'

O NOTES TO FINANCIAL STATEMENTS-(Continued)

Common Stock for each $48.50 principal amount of such Debentures. The number of shares reserved for conversion of the Convertible Debentures will be redetermined after adjustment of the conversion price because of the sale of the New Common Stock. The adjusted conversion price and number of shares reserved for conversion will be as follows:

Assumed Initial Public Adjusted Number of Offering Price of New Conversion Shares Reserved Common Stock Price for Conversion From ,To

$18.46 $22.23 $44.50 438,067 22.24 26.02 45.00 433,200 26.03 29.80 45.50 428,440 29.81 33.59 46.00 423,783 Based on bonds outstanding at December 31,1973 and February 28,1974 the annual sinking fund requirement is $8,840,000 of which %987,500 must be satisfied in cash or an equal principal amount of bonds and the balance may be satisfied with bondable additions. At December 31,1973 and February 28,1974 the Company had $500 deposited in the sinking fund and had reacquired

$4,862,000 principal amount of bonds. This amount plus $200,000 principal amount of bonds canceled earlier will be used to meet the 1974 sinking fund requirement, and the remainder will be G used to meet future sinking fund requirements. The balance of the 1974 sinking fund requirement will be met with bondable additions.

(4) Dividend Restriction:

The Composite Certificate of Reincorporation prohibits the payment of dividends on common stock which would reduce common stock equity below 25% of total capitalization, unless such dividends would not exceed 75% of net income, as defined, for the preceding twelve months.

At December 31, 1973 and February 28, 1974, approximately $108,577,000 and $104,884,000, respectively, of retained earnings was free of such restrictions.

(5) Construction Program and Commitments:

Reference is made to "Use of Proceeds and Construction Program" for information regarding the amount of estimated construction expenditures in connection with which the Company had substantial purchase commitments at December 31,1973, and February 28,1974.

(6) Pending Legal Matters:

Litigation in which the Company is a party is described under "Pending Legal Proceedings" under the caption " Business" in this Prospectus.

(7) Short-Term Debt:

The Company has established lines of credit with certain New York and Florida banks which total $80,000,000, with interest payable substantially at the prime rate. The unused lines of credit at December 31, 1973 and February 28, 1974 amounted to $%158,000 and $40,759,000 respectively. In order to maintain these lines the Company rnaintains average compensating 27 Pf 0007 217~

balances at all but one of these banks which range from 10% of the line to the greater of 10% of O

the line or 15% of the amount borrowed. The accounts maintained in these banks are also used to transact the normal cash business of the Company. At December 31, 1973 and February 28, 1974 the amounts considered to be held as compensating balances were $7,500,000 and there are no legal restrictions to the withdrawal of these funds.

The Company also has arrangements to sell commercial paper up to $40,000,000. There are no compensating balances or other restrictions of cash associated with the commercial paper arrangements. At December 31, 1973, the Company could issue an additional $30,000,000 of commercial paper and at February 28, 1974 an additional $18,000,000.

The maximum amount, average monthly amount and the weighted average interest rate of short-term borrowings during 1973 and for the twelve months ended February 28,1974 were:

Bank Loans Commercial Paper 2/28/74 2/28/74 12/31/73 (Unaudited) 12/31/73 (Unaudited)

(Thousands of Dollars) hiaximum Amount . . . . . . . . $80.263 $80,263 $39,000 $33,000 Average Af onthly Amourt . .. .... $46,658 $47,004 $18.550 $16,400 Weighted Average Interest Rate . . . . . . 7.98 % 8.19 % 7.80 % 8.19 %

Subsequent to February 28,1974, the limits on the Company's bank lines of credit and on its commercial paper arrangements were raised to $100,000,000 and $50,000,000 respectively.

(8) Supplementary Income Account Information:

The amounts of depreciation and maintenance, other than those set forth in the statements of income, are not significant. Taxes, other than income taxes, charged directly to tax expense and to other th.a income accounts are set forth below:

Twelve Months Ended Year Ended December 31 February 28, 1974 1969 1970 1971 1972 1973 (Unaudited)

(Thousands of Dollars)

General property taxes. .. . . .... .. . $ 6,287 $ 7,235 $ 7,300 $ 7,551 $ 8,188 $ 8,430 State tax on gross receipts. . .. . . 2,094 2,316 2,521 2,894 3,643 3,758 Payroll taxes . . . .. . .. .. . . 949 1,046 1,187 1,439 2,128 2,185 Franchise and other taxes. . .. .. 2,410 2,643 3.285 3,794 5,175 5.306 Total .. .. .. . $11,740 $13,240 $14,293 $15,678 $19.134 $19,679 Less- Amount charged to other accounts. 485 563 641 776 1,145 1.184 Charged direct to income accounts.. . .. . $11,255 $12.677 }13,652 $14,902 $17,989 $18.495 Rents, royalties, advertising costs and research and development costs-not significant.

28 e>v '

0007 218

EXHIBIT 3 O

STATEMENT OF COST OF CONSTRUCTION ATIRIBUTABLE TO CR-3 (Based on September 1976 Cocanercial Operation)

Cost of Construction at Crystal River: Total Amount Structures and Improvements S 65,629,516 Reactor Plant Equipment 73,631,535 Turbo-Generator Equipment 35,087,763 Accessory Electric Equipment 22,498,014 Misc. Power Plant Equipment & Unallocated Expenses 61,558,273 Subtotal $258,405,101 Other Costs of Construction:

General Administrative Capitalized Costs S 842,789 Engineering and Supervision 19,923,585 Allowance for Funds Used During Construction (AFC) 102,646,951 (1)

Engineering Services 34,370,874 O Total Work Order Charges $416,189,300 l Other Costs Not Included Above:

Nuclear Fuel $ 32,328,000 (1)

Substation Step-Up Transformers 2,140,960

• Other Unallocated Costs (Land) 18,860 Total Construction Charges $450,677,120 Adjustments for External Facilities (2,140,153)

• Total Net Charges $448,536,967

• Amounts are based on direct costs to date with an allocation of overhead charges. These amounts will be adjusted for future direct costs and final allocation of overheads.

(1) Amounts include 90% of AFC estimate from July, 1975 to September, 1976.

O '

~0007 219~

Exhibit 3A O I. Estimated Annual Cost of Operating Crystal River Unit 3 A. See Attached Forms II. Estimated Cost of Permanent Shutdown of Crystal River Unit 3.

A. Estimated Decommissioning Costs (Notes 3 & 5) $750,000.00 III. Estimated Annual Cost to Maintain the Facility in A Safe Shutdown Condition.

A. Annual Cost (Notes 4 & 5) - - - -- S 50,000.00 (The accompanying notes are an integral part of this stattuent)

O 0'007 220 g

Am. 46 (8-22-75)

ATTACHMENT TO EXHIBIT 3A ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: Crystal River Unit 3 FOR THE CALENDAR YEAR 19 6 (September-December)

(thousands of dollars)

Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (plant factor 70  %)............ $ 5,095 Other operating expenses.............. 905 Maintenance expenses..................,........

106 Total nuclear power generation............ S 6.106 Transmission expenses................................... O Administrative and general expenses Property and liability insurance...................... Aso Other A.&G. expenses.................................. N/A(2)

Total A.&G. expenses............................. 650 TOTAL O&M EXPENSES............................... 6.756 O Depreciation expense...................................... 3.425 Taxes other than income taxes Property taxes.......................................... 870 Other................................................... O Total taxes other than income taxes.............. 870 Income taxes - Federal.................................... 5,167 Income taxes - Other...................................... 567 Deferred income taxes - net .............................. 500 Investment tax credit adjustments - net................... 411(1)

Return (rate of return: 10.62  %)......................... 10.741 TOTAL ANNUAL COST OF OPERATION $27,615 0007 22)

Am. 46 (9-22-75)

ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: Crystal River Unit 3 FOR THE CALENDAR YEAR 19_7_7 x s

(thousands of dollars)

Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (plant factor _

~

%)............ $ 11,152 Other operating expenses.............................. 2.735 Maintenance expenses.................................. 2,008 Total nuclear power generation............ 15.895 Transmission expenses................................... O Administrative and general expenses Property and liability insurance...................... 2,261 Other A.&G. expenses.................................. N/All)

Total A.&G. expenses............................. 2,261 TOTAL O&M EXPENSES............................... 18,156 O Depreciation expense...................................... 13,699 Taxes other than income taxes Property taxes.......................................... 3,479 Other................................................... O Total taxes other than income ~ taxes.............. 3.479 Income taxes - Federal.................................... 20,022 Income taxes - Other...................................... 2,195 Deferred income taxes - net .............. . ............. 2,500 Inves tment tax credit adjus tments - net. . . . . . . . . . . . . . . . . . . 411(2)

Return (rate of return: i n A, %)......................... 42,600 TOTAL ANNUAL COST OF OPERATION $ 102,240 h D007 2.22~

Am. 46 (8-22-75)

ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: Crystal River Unit 3 FOR THE CALENDAR YEAR 19 3 (thousands of dollars)

Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (plant factor 86 %)............ $ 10,636 Other operating expenses.............................. 2.923 Maintenance expenses.................................. 3.353 Total nuclear power generation............ 16.912 Transmission expenses................................... O Administrative and general expenses Property and liability insurance...................... 1,237 Other A.&G. expenses.................................. WA(2)

Total A.&G. expenses............................. 1.237 TOTAL O&M EXPENSES............................... 18,149 9 13,699 Depreciation expense......................................

Taxes other than income taxes Property taxes.......................................... 3,479 Other................................................... O Total taxes other than income taxes.............. 3.479 Income taxes - Federal......................... 6......... 17,519 Income taxes - Other...................................... 1.921 Deferred income taxes - net .............................. 4.383 Investment tax credit adjustments - net................... 411(1}

Return (rate of return: 10.62  %)......................... 41,141 TOTAL ANNUAL COST OF OPERATION $ 99,880 0007 223 Am. 46 (8-22-75)

ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: Crystal River Unit 3 FOR THE CALENDAR YEAR 19_73 (thousands of dollars)

Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (plant f actor 90 %)............ $ 10,316 Cther operating expenses.............................. 2,909 Maintenance expenses....... .......................... 9 791 Total nuclear power generation............ 16.008 a

Transmission expenses................................... O Administrative and general expenses Property and liability insurance...................... 1.224 Other A &G. expenses.................................. N/A(j_

Total A.&G. expenses............................. 1,224 TOTAL OSM EXPENSES............................... 17.232 O Depreciation expense...................................... 13,699 Taxes other than income taxes Property taxes.......................................... 3,479 Other................................................... O Total taxes other than income taxes.............. 3.479 Income taxes - Federal.................................... 15,329 Income taxes - Other...................................... 1,681 Deferred income taxes - net .............................. 5,898 Investment tax credit adjustments - net................... 411(1)

Return (rate of return: 10.62  %)......................... 39,637 TOTAL ANNUAL COST OF OPERATION $ 96,594 0

Am. 46 (8-22-75)

ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: Crystal River Unit 3 FOR THE CALENDAR YEAR 1980 (thousands of dollars)

Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (plant factor 92  %)............ S 9,782 Other operating expenses.............................. 3.137 Maintenance expenses.................................. 2.774 Total nuclear power generation............ 15.693 Transmission expenses................................... O Administrative and general expenses Property and liability insurance...................... 1,224 Other A.&G. expenses.................................. N/AU)

Total A.&G. expenses............................. 1.224 TOTAL O&M EXPENSES............................... 16.917 O De e reciation expense...................................... 38,231 Taxes other than income taxes Property taxes.......................................... 3,479 Other................................................... O Total taxes other than income taxes.............. 3.479 Income taxes - Federal.................................... 13.413 Income taxes - Other...................................... 1,471 Deferred income taxes - net .............................. 7,250 Investment tax credit adjustments - net................... 411(1)

Return (rate of return: 10.62 %)......................... 38,231 TOTAL ANNUAL COST OF OPERATION $ 94,049 0 0007 225 Am. 46 (8-22-75)

O FLORIDA POWER CORPORATION Notes to Exhibit 3A

1. Investment Tax is deferred and the net affect is a credit in the amount shown.

2. A 6 G expenses are not allocated to generating units.

3. The cost estimate for shuting down Unit 3 is based upon leaving the reactor and its associated nuclear systems in place and salvaging the secondary side of the plant. All nuclear fuel, of course, will be removed from the plant and sent of f site for final reprocessing.

4. The annual cost to maintain the facility in a safe condition is based upon isolating the plant area by suitable fencing and monitoring the area periodically by guards.

5. The source of funds required for the operation of Unit 3 for five years, e for the permanent shutdown of Unit 3, and for maintaining Unit 3 in a safe shutdown condition will be obtained from revenues derived from the sale of electric power to retail and whole sale customers.

Power Corporation has no taxing authority.)

(Florida The unit price per KWH experienced on Florida Power Corporation's system wide sales of electric power to all customers for the 12 month period ending May 21, 1975 was .0341.

G 0007 226 Am. 46 (8-22-75)

EXHIBIT 3B RATE DEVELOPMENTS Granted

• Annual amount - test year basis (000 's ) ------- ==$ 45,081,074.00 Percent increase (Note 1) -- -

19.9%

(Note 2) - - - -

12.5%

Effective date -- - - - --- - - - - - - August 22, 1975 Rate of return on rate base authorized -- - - - - - - - - - 8.66%

Rate of re turn on common equity authorized ---------- 14.60%

Revenue Effect (000's)

O Amount received in year granted - -$ 33,250,000.00 Amount received in subsequent year (Note 3) -- S 45,081,074.00 Pending Requests Amount (000's) --- -

None Percent increase --- - = - - - - - -

None Date filed ----

None Date by which decision must be issued ---- - -

None Rate of return on rate base requested - -- - - - -

None Rate of return on common equity requested -

None

• Provide copy of latest rate order. (See Supplement No. 1 of this Application.)

(1) Exclusive of fuel adjustment revenues. 0007 2'7 2

(2) Including fuel adjustment revenues.

(3) Assuming no growth.

Am. 46 (8-22-75)

EXHIBIT 3C 9 FINANCIAL ANALYSIS 1974 1975 (dollars in millions)

Earnings available to common equity ------------- 30.0 53.3 Ave ra ge c o mmon eq ui ty --------------------------- 369.9 424.7 Rate of return on average common equity =- --

8.1% 12.6%

Net income before total interest charges -------- 95.6 119.5 Total interest charges ------------------=-- -- 53.8 52.5 Times total interest charges earned ---- 1.8 2.3 Net income before total interest charges -= =

95.6 119.5 Interest on long-term debt - - - - ----

43.1 43.9 Times long-term interest charges earned

• 2.2 2.7 Gross income after taxes -

95.6 119.5 Total interest charges & preferred dividends -

65.6 66.2 Preferred stock coverage ** --------

1.46 1.81 AFUDC -- =-- -

36.7 30.4 ONetincomeafterpreferreddividends------= 30.0 53.3

% = --- - ------

120.3 57.0 Operating expenses (less depr. & total taxes) --- 285.6 317.1 Operating revenues -- -- - ------ 405.0 504.5 Operating ratio ---- =---

.71 .63 Ma r ke t p rice o f common ----------------- == - 13.50 29.38 Book value of common -- --- --

28.74 29.95 Market-book ratio - ------------ --- .47 .98 Cash earnings available for common ---== = 0.00 22.9 Common dividends = ------------

24.1 26.3 Ratio ---- = -- - - - - - *** .87 Capitalization (Amount,& Pe cent)

Long-term debt =- ------

- ----- 642.8 53.9% 661.5 52.3%

Preferred stock -- ----------

179.5 15.1 177.9 14.1 Common equity -- - ------- -

369.9 31.0 424.7 33.6

• Provide latest Net Earnings Certificate showing interest coverage calculated in accordance with the provisions of the mortgage and/or debenture indenture together with a copy of the indenture (s). See Attachment 2 of this Exhibit.-

If the Corporate Charter contains a preferred stock coverage requirement, provide G**thatportionwhichshowshowsuchcoverageistobecalculated. .See Attachme t 2 of this Exhibit.

Q}Q[ 22

• • • In 1974 earnings available to common were totally AFUDC.

Am. 50 (11-17-76)

ATTACHMENT 1 TO EXHIBIT 3C 9 Au rII[It AN DE usi:N & Co.

Crt<Ttrirn Pi;nt ic Accor:NT As r*

1 Ast PA. F t.ost r D A :5:lGou December 4, 1973 Morgan Guaranty Trust Company of New York 23 Wall Street New York, New York 10015 Gentlemen:

We, as independent certified public accountants, have examined the balance sheet of Florida Power Corporation (a Florida corporation) as of August 31, 1973, and the related statements of income, retained earnings, premium on common stock and sources of funds used for construction for the twelve months then ended and have issued our report thereon dated October 11, 1973. Our i examination was made in accordance with generally accepted auditing S standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

We have read the applicable Sections of the Indenture of Florida Power Corporation dated as of J anuary 1, 1944, as amended, and the examination referred to above is, in our opinion, adequate to enable us to express an informed opinion with respect to the " net earnings certificate" for the twelve months ended August 31, 1973, pursuant to Section 1.06 of Article I of the Indenture.

. In our opinion, the accompanying " net earnings certificate-for the twelve months ended August 31, 1973, presents fairly the information required to be submitted in connection with the appli-cation for authentication and delivery of $70,000,000 princ ip al amount of bonds in compliance with Section 1.06 of Article I of the Indenture.

Very truly yours, pal " C di u. it M O,

$ 0007 2.29

O O O Page 1 of 2 FLORfDA POWER COPPORATION I

NET EAPNINGS CERTIFICAT! FOR THE TVFIVE MONTH 9 ENDED A UGUST 31. 1973 PURSUANT TO SECTION 1.06 0F ARTICLE T OF TNDENTURE DATED AS OF JANUARY 1. 1944. AS AMTNDED (A) NET EARNINGS (As defined in Indenture);

(1) Gross Operating Revenues.

Sales of electric energy.

Residential $115,156,648 Comme rc ial 58,456,790 Industrial 25,907,252 Othe r electric utilities 23,217,340 Other 5.R42.712 $228,5PO,742 Other electric revenues 4,402,051 Total gross operating revenues 232,942,793 (II) Operating Espense (Note 1).

Operation 104,133,769 i Maintenance 14,053,563 Provision for depreciation representing the lesser of.

Minimum provision for depreciation (as defined in the Indenture) 19,286,233 Maximum provision for depreciation for the calendar year (1972) ended during the twelve months ended August 31, 1973, as certified in the last annual officers' certificate of bondable value of property additions 19.419.627 19,286,233 Taxes (other than taxes on income) 16,812,509 Total operating expenses 154,236,073 Operating income 78,696,720 (III) Net Nonoperating Income (Note 1):

Allowance for funds used during construction 18,148,647 306,826 '

Other 18,455,473 Less. Escoes of not nonoperating income over 5% of operating income (14,520,637) 3,934,836 ,

Net earnings (as defined in Indenture) $ 82,631,556 c::) ............

O C::) The accompanying notes are an integral part of this statement.

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G FLORIDA POWER CORPORATION NOTES TO NET EARNINGS CERTIFIC ATE FOR THE TWELVE MONTHS ENDED AUGUST 31, 1973 (1) OPERATING EXPENSES AND NET NONOPERATING INCOME:

Bond interest end amortization charges are specifically excluded from operating expenses, as provided in Section 1.06 of Article I of the Indenture. In addition, other interest charges (representing principally interest on convertible debentures and bank loans) of $4,425,533 and miscellaneous other deductions of

$237,971 are not included as operating expenses under (II) of the accompanying net earnings certificate.

Section 1.06 of Article I of the Indenture limits the amount of net nonoperating income to be added to 5% of operating income.

9 Discount on reacquired bonds of $661,426 which is reflected as a credit under "Other income and deductiers" in the Company's statement of income for the twelve months ended August 31, 1973, is not included in net nonoperating income under (III) of the accompanying net earnings certificate.

(2) USE OF PROCEEDS:

The Company represents that no property which was formerly operated by others is to be acquired concurrently with or through the issue of $70,000,000 principal amount of bonds applied for in the application in connection with which this certificate is made.

% 9 4 0007 232

ATTACHMENT 2 TO EXHIBIT 3C d

19 r

statutes providing the method of adopting such resolution or reso-lutions.

8. ( A). So long as any shares of the Preferreil Stock of any series are outstanding, the Corporation shall not without the con-sent (given by vote at a ineeling called for flint purpose in accord-ance with the provisions of paragraph 12 hereof) of the hohlers of at least two-thirds of the total number of shares of Preferred Stock of all series then outstanding:

(a) crenic or aufhorize any kind of stock ranking prior to or on a parity with the Preferred Stock as to a"els or dividends, or create or authorize any security converlible into shares of stock of any such hind: or l

(b) :unend, aller, change or repeal any of the express terms of the l' referred Stock or of any series of Preferred Stock then ontstatuling in a manner prejudicial to the hohlers thereof: pro.

videf t Ilowever, { }tal j[ ally stic}l alllell Inleill, alteratioII, Ch;lligt' G or repeal wonhl be prejudicial to the hehlers of shares of one or more, inil riot all, of the series of I'ieferroil Stock at the time milstandine, sneh consent shall be reepiired only from the hohlet <

o[ two-IIliffin of 1110 tolal nll!!!her of Olllsf allding shares of all series so alTected.

(It). So long as any shares of the Preferred Stock of any s:' ries are oilt s t ainlinR, the Corporation Shall l'ol, without lhe consent (civen by vote at a meeting calb d for f haf purpose in accordance with the provision < of paragraph 12 hereof) of the hohlers of n ma.iority of the total umnher of shares of the Preferred Stock of all Seties lhelt ottistanding:

(3) illcreaso Ille total allthoriZefl 3I11011111 ol lite l'refelred Stock ahnve 60,000 shares; or (h) issue any shares of lhe l* referred Sfork. in adelilion to tile filiti:il set-ies of 40,000 slia res Iliereof, intil. s< tor ariy 1wels o i

(12) conscentive calendar inonths within the lit tren (15) calenilar j

}

d 20 nionths immediately preceding the calemlar month within which such additional shares of Preferred Stock shall be issued, (i) the not earnings of the Corporation applicable to the payment of dividends on shares of the Preferred Stock. determined after provision for depreciation ami all taxes amt in accordance with sound accounting practice, shall have been at. lenst two (2) times the dividemi requirements for a twelve (12) months' period upon all the shares of the Preferred Stock in he outstanding innnediately'aff er the proposed issue of such additional chares of l' referred Stock, and (ii) the nel carnines of the Corporn-tion available for the payment of inf orest chattes on the Co r po ra t io n 's indebtedness, determined af ter provision for depreciation ami all taxes ami in accordance with mnnd account- ,

inn practice, shall have been at lensi one ami one-half (1%)

times the actregate for a twelve (12) months' period of the interest charges on indchiedness of the Corporation and the dividnml rerpiirements on all shares of the Preferre i Stock to he ontstanding innuediately after the propoced issue of such 9 additional shares of Preferred Stock. There shall be excIn. d from the foregoing computation interest chnrges on all indebted-news and dividends on all stock which are to be retired in con-nection with the i"ue of such miditional shares of Preferred Stock. Where such additionni shares of Preferred Stock are to he issued in connection with the acquisition of new property the

' not earnings of the property to be sa acquired may be included I on a pro forma basis in the foregoing compntation, computed on the same basis as the net earnings of the Corporation; or (c) issue or incur any additional imlebtedness maturing more I

than twelve months from the date of issue or issue any additional a shares of Preferred Stock unless innnediately af ter such is=uance the aggregate of the principal mnonut of indebtedness then maturine more than twelve months and the par vaine or stated i

valnr of the Preferred Stock then outstamling shnli he less than

! 7,W of the Total ('npitalization of the ('orpotntion. The term j "Toint ('apitalization" shall mean the aggregnie of the par j '

1 1

0007 234 4

. d 21 value or stateil value of the issneil and ontstanding shares of stock of all clasms of the Corporation and the surplus (includ-ing capital or pairl-in unrplus and surplus of any kind, however designated) anel premium on capital stock of the Corporation, plus the principal amount of all outstamline debt maturing inoie than twelve inonths from the dale of the deterio. nation of Total Capitalization; or (il) is.sne any shares of the l' referred Stock, in mhlilion to the initial series of 40,000 shares thereof, unless the aegrecate of the capital of the Corporation applicable to the ('onnnon Stock and the surplus of the Corporation shall he not less than the mnount payable upon involuntary dissolution to the hohlers ot the l* referred Stoe.c to be ontstamling innnedialely af ter the proposed issue of sneh athlitional l' referred Stock, excluding from the foregoing computation all indchiedness ami stock which are to be retired in connection with the issue of sneh mblitional ,

shares of I' referred Stock, provideil, that no portion oi the sur-O phir of the Corporation which shall be used to meet the icipiire-ments of this paragraph (d) shall, aftri the inne of such mhlitional shares af Prefeireil Stock amt until such mhlitional shares or a like number of other shares of l'refeired Stock shall have been retired, he available for divideints or other ilistribution upon the Common Stock; or (e_) merge or consolidate with or into any other corporation or corporations, tinless sneit merger or consolidation, or the issuance anil assumption of all sceurities to be issued or asemned in connection with any such merger or consoli lation, shall have i

heen orilered, approved or permitted by the Securities and Exchance Commission umler the provisions of the l'nhlic Utility llohling Company Act of 19:15 or hy any succousor commi.<sion or reculatory authority of the (hiited Sintes of .\merica havine jurisilielion in lhe premises: provided that the to ovisions of this clause (D) shall not apply to a purchaw or other aceptisition by the ('orporation of the franchises (inelnding franchiws anil tiehts granteil by corporate charter) or nssets of annther corporation or I

$ 0007 235

i 22 otherwiw apply in :niy manner which ilnes not involve a merger Or CO!!SoliiIalion.

(C). Fro n time to time, ami without limilation of other rights mol powers of the Corporation as proviileil by law, the ('orporation may reclassify its capital stock aml may create or anthorize one or more clasms or kimls of stock ranking prior to or on a parity wilh or subotilinate to the Preferreel Stock or inny ineren<e the anthor-imi arnonni of the l'referreil Stock or of the Connnon Stock or of any other class of stock of the Corporation or may amoml. alter, chance or repeal any of the riglits, privilege.=, terrns ami comlitions of the shares of the l'referreil Stock or of any series thereof then ontstatuling, or of the ('ommon Stock, or of any other clas< of stock of the (lorporation, upon the vote, given at a meeting calleil for t hat purpose in accorilance with the provicions of paragraph 12 hereof, of thi hohlers of a ma.iori'y of the shares of stock then entitimi to vote the.aon or upon such other vote of the hohlers of the shares of stock then entitleil to vote thereon as may then he provideil by 9 law < provideel that the consent of the hohlers of the chares of the l' referred Slock (or of any series thereol) respiireil by the provi sions of subparagraphs ( A) and (11) of paragraph S lu>reof, if any sneh conent he so reeinired, shall have been obtained: anni proviileil further that the rights, privileges, terms moi comlitions of the shares of the ('ommon Stock shall not he subject to mnemhnent, alteration, change or repeal without the consent (given in writing or by vote at a meeting calleil for that purpow in accordance with the provisions of paragraph 12 hereof) of the hobh rs of a um.intily of the total number of shares of the Common Stock then ontstamling.

9. No hohler of shares of any serir< of the Pr. ferred Stock shall be entitleil as such as a matter of right to subscribe for or inir-chase any part of any new or mhlitional issue of any tock of any class, series, or him! whatsoever, or securities convertible into stock of any cla <. series or kinil w hat soever, whet her mot or hereaf ter authorimi, ami whether issued for cash, property, services, by way of dividemis, or otherwise.

1 0007 236'

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0007 237 1965-1975 ewa

O FLORIDA POWER CORPORATION STATISTICAL REPORT For the Ten Years Ending December 31, 1975 Biographies . . . . . . . . . .................... 2 Regulation ...... ....................... 6 Rates . . . . . . ........ .... ......... ... 7 Condensed Balance Sheets . . . . . .. . . . . . . . . . . . 8-9 Statements of Source of Funds Used for Construction . . . . . . . . . . . . . . . . . . 8-9 "y Capitalizaton . . . . . . . . . . . . . . . . . . . . . . . . . 10-11 0Q [J , A Suramary of Earnings . . . . . . . . . . . . . . . . . . . . 12-13 Revenue and Expense Statistics . . . . . . . . . . . . 14-17 Revenue and Kilowatt-Hour Sales Statistics . . . . . 18-19 9 '~ Customer a.xl Revenue Statistics . . . . . . . . . . . . 20 21 Revenues and Kilowatt-Hour Sales from Industrial Customers . . . . . . . . . . . . . . 22 23 Production Statistics .. ................ . 24-25 Physical Statistics ....... . . . . . . . . . . . . . . 26-27 Notes to Statistical Report . . . . . . . . . . . . . . . . . . . 28 The financial statements and statistics con-toined herein are submitted for the general information of the security holders of the Company and are not intended to promote or influence the sole or purchase of securities. l FLORIDA POWER CORPORATION 320134th STREET SOUTH TELEPHONE: 813-866-5151 MAILING ADDRESS: P. O. BOX 14042 9 ST. PETERSBURG, FLORIDA 33733 FEBRUARY 25,1976 J .5 ' 0007 8 g

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BOARD OF DIRECTORS Director Since g J ACK B. CR11CliFIELD, President, Rollins College. Winter Park, Florida 1975 1 SAM T. DELL, Senior Partner, Dell, Graharr., Willcox, Barber, Rappenecker, Ryals & llenderson, P.A., Gainessille, Florida ( Attorr.cys at Law) 1975 BYRON E. IIERLONG, President, A. S. lierlong & Co.,Inc., Leesburg, Florida (Citrus Business) 1967 ANDREW 11. I!!NES, JR., President of Florida Power Corporation 1968 FRANK M. IlUBBARD, Chairman of the Board, ilubbard Construction Company, Orlando, Florida (iiighway Construction) . 1968 GEORGE W. JENKINS, Chairman of the Executive Committee, Publix Super Markets, Inc., Lakeland, Florida 1965 RICli ARD C. JOi!NSON, Chairman of the Board, Community Banks of Florida, Inc., Seminole, Florida 1971 ROBERT M. KING. President-Treasurer, Rutland King,Inc., St. Petersburg, Florida (Department Stores) . 1966 CLARENCE W. McKEE, JR., Vice President, Finance and Control of Florida Power Corporation 1976 A. P. PEREZ, Retired Chairman of the Board of Florida Power Corporation 1966 RICil ARD E. RAYMOND, Senior Vice President, System Engineering and Operations of Florida Power Corporation 1970

                                    . ANDREW 11, llINES, JR.              search and development with the General Electric Company in the northeastern United States, President and Director               Ile then joined Florida Power Corporation as an Assistant Pro-g

( duction Engineer. lie also served as Industrial Sales and Area p,S Andrew 11. Ilines, Jr., 5 3, was born Development Department Ilead. After being assigned responsibili-in Lake City, Florida and attended ties in the Division Operations Department, he was promoted to high school in Alachua, Florida. lie Vice President in 1964, and Executive Vice Presider"in 1967. In graduated from the University of 1968 Mr. Ilines was elected to the Board of Direuors and on Florida with a Bachelor's Degree in March 30,1972 he was named President. lie became Chief Execu-Mechanical Engineering with liigh tive Officer on March 29,1973. f lionors. Following graduation, Mr. lie is active in civic affairs and serves as a member of the Board u liines spent four years doing re- of Directors of the Landmark Union Trust Bank in St. Petersburg

• T f RICllARD E. RAYMOND i .

Operations. In March 1970 he was elected to the Board of Senior Vice Pres.i dent Directors and in September 1970 he was elected Senior Vice and Director President, System Engineering and Operations. lie is a member of

       $                                                                       the National Society of Professional Engineers, and a member of
 .'3,                                  Richard E. Raymond was born in the Florida Engineering Socierv; member, University of Florida M                                1915 in Montclair, New Jersey. lie College of Engineenng. Dept. of Electrical Engineering Visiting j

attended the University of Florida Committee; and a member of the University of Florida College of and in 1939 received his Degree in Engineering Advisorv Council. Electrical Engineering. Upon gradu- lie is a merrNr of the Southeastern Electric Exchange; a ation he joined Florida Power member of the Edison Electric Institute; a senior member of the t , Corporation as an Engineering Institute of E!cctrical and Electronics Engineers; a member of the Draftsman. Atomic Industrial Forum, Inc.; and a member of the American Following military leave of absence during World War II, Mr. Nuclear Society. Raymond has served in many engineenng capacities. In October lie is a Director of the hun Bank & Trust Company and the Sun 1964 he was promoted to Vice President, System Operations, and Coast Bank of St. Petersburg. Active in many civic affairs, he is in March 1969 he was elected Senior Vice President, System President of the Rotary Club of St. Petersburg. CLARENCE W. McKEE, JR. Mr. McKee returned to St. Petersburg in 1953 ar.d in 1954 joined Florida Power Corporation as a Traveling Auditor. In 1961 Vice Pres.i dent he was promoted to Administrative Assistant to the Controller and Director and in 1963 was made Assistant Controller. In 1966 he was elected Controller of the Company, was elected Vice President, Clarence W. McKee, Jr., born 1924, Finance and Control, in November 1970, and was elected to the g is a native of St. Petersburg attend- Board of Directors in January 1976. Mr. McKee saw active duty

         -                       . ing public schools locally and grad- with the United States Navy during World War 11.

uating from St. Petersburg Junior Mr. McKee is Chairman of the Accounting Division Advisory College. lie attended the Wharton Committee and Past Chairman of the Accounting Division Execu-School of Finance and Commerce, tive Committee of Edison Electric Institute, and Past Chairman University of Pennsylvania.graduar- the Accounting and Finance Division Executive Committee of th ing in 1951 with a Bachelor of Southeastern Electric Exchange. lie is a Member of the Board o Science Degree in Economics. Prior to joining the Company, he Directors of United Way of Pinellas, Treasurer and Member of the was employed by the international Latex Corporation in Dover, Board of Trustees of Bayfront Medical Center, Inc., and Past Delawate e, President of the Exchange Club of West St. Petersi;urg.

                                                                                                                                      '0007 239

STANLEY A. BRANDIMORE State Treasurer and Insurance Commissioner and, later, for the Vice President and Flonda Public Service Commission in Tallahassee. In March 1959 K gg General Counsel he was appoi nted Staff Attorney of Florida Power Corporation and was promoted to Assistant Counsel in 1964, Assistant i Stanley A. Brandimore was born m General Counsel in February 1968 and General Counsel for the j 1927 in liighland Park, Michigan. Company in August 1968. In March 1971 he was elected Vice wn. lie attended high school and junior President and General Counsel. college m St. Petersburg, Florida. lie is a member of the American, Florida, and St. Petersburg Mr. Brandimore attended Duke Bar Associations Federal Power Bar Association and the Legal University and was graduated from Cornmittee of the Edison Electric Institute. lie is also a member the University of Miami with a of the St. Petersburg Area Chamber of Commerce, the St. B.B.A. in 1954 and a Juns Doctor Petersburg Suncoasters, the Committee of 100 of Pinellas Degree in Law in 1957. Mr. Brandimore is admitted to practice County, Inc., the St. Petersburg YMCA Board of Directors, and is before all the courts of Flonda and vanous Federal courts a past President of St. Petersburg Junior College Alumni including the Supreme Court of the United States. Association. Mr. Brandimore served in the U.S. Navy during Following graduation, Mr. Brandimore worked for the Florida World War 11 and the Korean War. E. EUGENE DEARMIN Through a series of promotions he was made Office Manager in Vice President 1937. Following four and one half years in the U.S. Air For'ce, he Central and Northern Divisions returned to Ocala in 1945 and' was promoted to Assistant F E. Eugene

Dearmin,

a native of St. Division Manager. In 1950 he was promoted to Division Manager, Central Division. Ocala. In 1973 Mr. Dearmin was elected Vice

                    .3           Louis, Missouri, was born in 1911. President and assumed operating responsibilities for both Central lie moved with his family to St.       and Northern Divisions.

Petersburg in 1919 and was edu- Long active in civic and governmental affairs, Mr. Dearmin is cated in the local school system, serving in his second four-year term on the Ocala City Council graduating from St. Petersburg fligh having served two consecutive years as president. lie is active in School. the Ocala/Marion County Chamber of Commerce and is a Mr. Dearmin was employed by member of the Executive Board of the Committee of 100. lie is a Flonda Power Corporation in 1928. After serving in several member of the Florida Ports and Water Resources Association positmns in the accounting and billing departments he was serving as a director for many years. Mr. Dearmin is past transferred in 1932 to the Division Office, Ocala, as a clerk. chairman of the Marion County Industrial Board. 0007 240. JOllN E. GLEASON District Manager. In 1965 he was appointed Division Manager,

                                           \, ice President and in 1967, Manager of Division Operations. In October 1969
              -N                                                       Mr. Gleason was elected Vice President of Customer Operations.

Eastern and Ridge D.ivisions in 1972 he moved to Wmter Park where he assumed responsi-

                  #                                                    bility for the area that includes the Eastern and Ridge Divisions.

s John E. Gleason, a native of Safety lie is a Senior Member of the Institute of Electrical and liarbor, Florida, was born in 1918. Electronic Engmeers. An active Rotarian for many years, he lie attended the University of Flor- served as Secretarv in 1962 and President in 1963. Active in ida, graduating in 1948 with a Chamber of Commerce work, he has served as a Director in two Bachelor's Degree in Electrical different Florida communities. lie is a member of the Winter Park Engmeeting. Chamber of Commerce, the Orlando Area Chamber of Com-In 1949 Mr. Gleason joined Flor- merce, the Committee of 200 and the Central Florida Develop-ida Power Corporation as an Asso- ment Committee. lie is a Director of ComBank/ Winter Park. lie ciate Engineer in the City of Lake Wales. In 1950 he was has long been active in church work, serving in various capacities, appointed an Engineer and in October 1961, was promoted to including that of Deacon, Elder and church school teacher.

 '. .L #       ,v                                                                                                                        3

BILLY L. GRIFFIN Division. In August 1964 he returned to St. Petersburg as Execce Assinant in Wrision Operations, then promoted to Vice President . Director of that department in January 1970, and to Assistant System Operations Vice President. Division Opaations in 1971. In Januarv 197 Griffin assumed responsibilities as Assistant Vice Presider: Billy L.. Griffin, born in 1930, is a Construction, Maintenance & Operating. On December 20,197 native of Central, South Carolina. he was promoted to Vice President,5 stem 3 Operations. lie attended local schools there, lie is a Registered Professional Engi~.eer, Vice President of and graduated from Clemson Uni- Pinellas Chapter Florida Engineering Society Chairman of the _ fg sersity with a Bachelor of Science State Industry Practice Section of the Florida Engineering Degree m Electrical Engineering in Society, Member of National Society of Professional Engineers, 1952. lie served with the U.S . Senior Member of the Institute of Electrical and Electronics Army dunng the Korean conflict. E ngineers, and serves on the Executive Committee of the Mr. Griffm joined Flocida Power Corporation in 1954 as Cadet Engineering and Operating Section of the Southcastern Electric Engmeer at St. Petersburg, promoted to Associate Engineer in Exchange. lie is past President Jefferson County Lions Club, past 1954, and to Engineer m 1955. In August 1957 Mr. Griffin was President Jefferson County Jaycees, and served as Secretarv of promoted to Division Engmeer of the Company's Northern Monticello Kiwanis Club. MAURICE F. IIEBB, JR. ment. In 1952 he was promoted to Engineer, then in 1953 was

                                      \, . ice Pres.i dent          made a Relay Engineer. In 1958, Mr. liebb was promoted to Assistant Chief Substation Engineer, Electrical Design, and in 9          Assistant to the Pres. i dent        1961 was made Chief System Planning Engineer. lie was named Chief Engineer Electrical in 1964. In 1967 he was elected Vice Maurice F. liebb, Jr., born in 1924, President and in September 1973, he was promoted to the ap!                       is a native of Tampa, Florida. lie position of Vice President, Assistant to the President.

F attended local schools, and is a lie is a Registered Professional Engineer in the State of Florid

 };                         graduate of the University of Flor- and is past Chairman of the Florida West Coast Section of th
    . .                     ida with a Bachelor's Degree in Institute of Electrical and Electronics Engineers. He is a member c                         Electrical Engmeering.                  of the National Electric Reliability Council's Technical Advisorv
               -I              Mr. IIebb joined Florida Power Committee, member of the Technical Advisory Committee of the Corporation m 1948 on the Stu- Southeastern Electric Reliability Council, and Chairman, Tech-dent-Employee Cooperative Program, and upon paduation in nical Advisory Committee on Power Supply for the Federal 1951 became an Associate Engineer in the Engineering Depart- Power Commission's National Power Survey.

L ALFRED J. ORMSTON in 1955 and Chief Engineer-Power in February 1964. In October

             *j.                       y       pg                    1964 Mr. Ormston was appointed Vice President Power. On October 1, 1973 he became Vice President, Assistant to the Assistant to the               Senior Vice President.

Senior Vice President lie is a Registered Professional Engineer in the State of Florida; past President of the Pmellas Chapter of the Florida Engineering Alfred J. Ormston, born in 1917,is Society; a senior member of the American Society of Mechanical

  ;                          a native of Scranton, Pennsylvania. Engineers, and a member of the National Society of Professional O                          lie attended school in St.' Peters- Engineers. lie is a past member of the Edison E'lectric Institute, burg and graduated in 1939 from serving as Chairman, Prime Movers Committee in 1965-1967. Mr.

the University of Florida with the Ormston saw active duty during World War 11 and, following his Degree of Bachelor of Science in release in 1946, remained in the Naval Reserve through 1950.11 Mechamcal Engmeeting. Upon grad- is a retired Lt. Commander, USNR. Mr. Ormston is a Director < uation, he joined Florida Power Corporation and was assigned to Glanville Mortgage Co., is a member of Board of Governors, S the Inghs Power Plant. Early in 1946 he was appointed Junior Petersburg Area Chamber of Commerce, a member of the Engineer and in 1950 a Turbine Engineer, becoming Mechanical Committee of 100 of Pinellas County, and a member of the City Engineer in 1951. lie was promoted to Chief Mechanical Engineer of St. Petersburg Port Commission. 4 0007 241

LEE 11. SCOTT Transmission and Distribution. Mr. Scott was appointed Director Vice President of Construction, Maintenance, and Operatmg m 1969, Assistant Customer Operation 5 Vice President in 1971, and Vice President, Customer Operations, 4 January 3,1972. IIe is a Registered Professional Engineer in the Lee 11. Scott, born in 1926, is a State of Florida. Y. native of Atlanta, Georgia. Ele at- Mr. Scott was a member of the Edison Electric Institute having tended the University of Florida, served as Chairman of the Reliability Task Force of the graduating in 1949 with a degree of Transmission and Distribution Committee in developing standards Bachelor of Science in Electrical of measurement for the industry. Fie is also a memt>er of the Engineering. lie served with the Florida Engineering Society. United States Air Force during Active in civic affairs, he is a member of the Board of Directors World War 11. of the Pinellas United Way; past President of the Winter Park Mr. Scott joined the Company in 1949 as a Junior Engineer in Jaycees; past president of Pinellas Community Services Councih the Winter Park Division. In 1953 he was appointed Engineer and past member of the Board of Directors GoodwillIndustries,Inc., m 1960, Supervisor of System Distribution Engineering. Ele then and the Pinellas Opportunity Council; past member of the Board served as Division Engineer, St. Petersburg, and Assistant Division of Governors of the St. Petersburg Area Chamber of Commerce; Manager, and in 1964 he was appointed Superintendent of and currently Vice Chairman of the American Red CrossChapter. TilOMAS F, TilOMPSON, JR, Vice Pres,i dent Manager and in 1962, Executive Assistant, Division Operations. in 1964 he was appointed Director of Administrative Services and

             ;                       Administrative Services          in 1967 was promoted to Vice President, Administrative Services.

Mr. Thompson is a Registered Professional Engineer in the State N Thomas F. Thompson, Jr., born of Florida; member of the National Society of Professional 1924, is a native of St. Petersburg, Engineers and a Fellow of the Florida Engineering Society. He is Florida, and attended local public a member of the Edison Electric Institute Committee on schools. He graduated from the Industrial Relations. lie has been a member of the Southeastern University of Florida wit' a Bache- Electric Exchange, Personnel Administration Section since 1968. lor's Degree in Electrical Engineer- Mr. Thompson is past Chairman of the Board of Trustees of the ing in 1948. Bayfront Medical Center. He was Director of the Pinellas County Mr. Thompson's first assignment Mental Health District Board, Inc.1971-7i, and Vice President with Florida Power was in 1949 as an Underground Distribution 1972-73; and in 1974 was President of South Pinellas Community Engmeer, and in 1956, was appointed Division Engineer, St. Mental Health Center, Inc. Ile is a member of the St. Petersburg Petersburg Division. He was later appointed Assistant Division Area Chamber of Commerce, serving as Vice President in 1971. 0007'242 JAY G. LOADER Secretary and Treasurer appNnted Special Accountant in the Special Reports Division of the Controller's Department. In 1959 he was appointed Coordina-Jay G. Loader was born m Plain- tot of the Special Reports Division. He served in that capacity field, New Jersey in 1923. lie at- until 1960 when he was elected Assistant Secretary and Assistant tended local schools in Asbury Treasurer. In 1967 he was elected to the position of Secretary Park, New Jersey, and graduated and Treasurer. from the University of Alabama lie is a Certified Public Accountant and holds memberships in with a Bachelor of Science Degree the American Institute of Certified Public Accountants, and the in Commerce and Business Admin- Florida Institute of Certified Public Accountants where he serves istration in 1951. He served with on the Committee on S.E.C. He is a member of the Board of the U.S. Army during World War 11. Directors of the Florida National Bank at Er. Petersburg; the Pnor to joming Florida Power Corporation, Mr. Loader was Finance Committee of Edison Electric Institute; the Amencan employed for four years by Arthur Andersen & Co., Certified Society of Corporate Secretaries and the Financial Analysts Public Accountants,in Atlanta, Georgia. Society of Central Florida, Inc. He is a past member of the St. < s lie came to Flonda Power in 1955 and served as a Traveling Petersburg Kiwanis Club and is active in the civic affairs of the ( Auditor -in the Accounting Department, and in 1956 was City of Treasure Island. 5

Regulation Florida Power Corporation is subject to reFulation by the matters. Also certain activities of the Company are subject to O Florida Public Service Commission with respect to rates, the jurisdiction of the Federal Power Commission under the services, accounting, the issuance of securities and other Federal Power Act. The Federal Power Commission, as authorized by the Federal Power Act, has jurisdiction over the interstate transmission of electric energy and its sale at wholesale FEDERAL in interstate commerce by public utilitics. Federal Power Commission regulation is at POWER the wholesale-for-resale level and is designed to ensure just, reasonable and non-COMMISSION discriminatory rates and services. The Company has 9 rural cooperative and 12 municipal wholesale customers. The Federal Power Commission also has jurisdiction to prodde for adequate and reliable interstate power supply. Closely related is the responsibihty for accounting, auditing and reporting functions under the Federal Power Act to ensure that reliable and consistent financial information is available for both regulatory and public purposes. At the retail level, Florida Power Corporation is regulated by the Florida Public Service Commission which is charged with regulating and supervising each public utility FLORIDA defined in the Florida Statutes with respect to its rates, service and the issuance PUllLIC SERVICE sale of its securities. This jurisdiction within the State of Florida is exclusive with t COMMISSION Public Service Commission and superior to that of all other boards, agencies or political subdivisions. The Florida Public Service Commission uses an original cost,less depreciation, rate base in determining allowable rate of return for setting rates. There is a staff of rate experts, engineers, accountants and lawyers available to advise and assist the Commissioners in their duties. The three Commissioners are elected from the state at large and serve for a period of four years. The present members are: Term Expires

      " ,5 s                          Chairman William T. Mayo, Tallahassee, Florida                               January 1979 Commissicner William II. Bevis, Tallahassee, Florida                         january 1979 Commissioner Paula F. llawkins, Maitland, Florida                            january 1977 Address of the Commission:

Whitfield Building 700 South Adams Street Tallahassee, Florida 32304 Telephone: (904) 488-1001 O. 0007 243

atOS RETAIL effective immediately as intenm relief. On Januarv 6, the Commission g-anted an interim increase of $33.3 million effective On August 4,1971, the Company filed with the Florida Public with February 1975 billings. In July, the Commission ordered the Serv ce Commission for a 12% increase in its retail rates of $18.6 Company to increase its rates and charges to provide a juris-million annually. On December 29, 1972, the Commission dictional rate of return in a range of 8.57% to 8.75% including a authorized an increase of $1.8 million. The Order established an 14.3% to 14.9% range for return on common equity. The allowable junsdictional rate of return range of 8.13% to 8.39%, Commission's order made the interim revenues permanent and which included a cost of capital range on common equity of granted an additional $11.8 million or a total of $45.1 million in 13.50% to 14.25% The Commission stated in its Order that for permanent revenues effective August 22, 1975. The Commission the test year 1971 the increase would produce a jurisdictional authorized the Company to collect additional revenues equal to rate of return of 8.22%, including 13.75% on common equity, franchise taxes as a surcharge on customers' billsin franchise areas, which represented 35.1% of our capital structure. which amounted to approximately $7.3 million in 1974. Beginning in September 1975, the Company included $106,250,000 of On October 15, 1973, the Commission authorized the Company additional construction work in progress in the retail rate base, to use a one-month average cost for the Company's fuel thereby reducing the amount available for allowance for funds adjustment clause and also authorized the Company to treat used during construction. At the same time, the Commission

      $ 1,560,000 of the state corporate income tax as expense for       reduced the AFDC rate from 10.5% to 8.66% and provided full rate-making purposes. The one month fuel adjustment clause          normalization of current book-tax timing differences.

became effective November 1,1973 and revised tariffs to reflect e state corporate income tax became effective on December 6, 9e73. s WilOLESALE On January 28, 1974, the Company requested approval of two On November 12, 1971, the Company filed an application with rate increases. The first was a petition for interim rate relief to the Federal Power Commission to increase rates for wholesale increase revenues by $12.3 million or an increase of 5.9% in rates. service to 9 rural cooperatives and 12 municipal customers by This request was substantially granted on April 5, and became $ 3,150,000 based on the test year 1970. On June 12,1972, the effective on billings rendered April 10,1974. The increase. based Company began collecting the new rates under bond subject to on 1973 revenues, raised rates by 5.7% or $12.1 million annually. refund at the conclusion of the proceedings. The Company The Company also requested that the Commission consider a settled with these wholesale customers for approximately petition for full revenue requirements. Ilowever, this was c'is- $2 million of increased rates based on the test year, which was missed in light of a similar filing in November,1974. then approved by the Commission. During 1974, the difference in rates collected under bond was refunded. On July 5, the Company filed a petition for a temporary rate increase of $14.5 million. This request was necessary in order to On September 12, 1975, the Company filed a petition with the maintain coverage ratios to issue first mortgage bonds in early Federal Power Commission to increase its wholesale-for resale 1975. Public hearings were held in August; and on September 3, rates to our rural cooperative and municipal customers by $9.8 the Commission den;ed the Company's request. million, or 15.8% The Company and the wholesale customers reached a settlement agreement, which was approved by the On November 22, 1974, the Company filed a full revenue Federal Power Commission, and became effective January 1, requirements petition with the Florida Public Service Commission 1976. The new rates provide a $5.4 million annual increase and requesting an increase of $65.6 million. At the same time, the recognize that further rate relief will be needed when the Crystal Company asked that $34.8 million of this request be made River nuclear unit goes on-line in mid 1976. O 0007 N4 7 )k* u ., o

t. t -

Condensed Balance sheets 1000 Omitted) g YEAR ENDED DECEMBER 31 1975 1974 1973 1972 ASSETS Electric Plant $ 1.623.387 S1.529.801 S t .332,487 Sl.105.597 1.er,-Accumulated Depreciation 223.736 198,391 189,994 168.369 Net l'tility Plant

              ~

S l .399.651 $ 1,331.410 S1,142.493 S 937.228 (lther Property arid inse 3tme nts 5.027 5,,199 3.167 3.105 Current As ct. 107,308 111.494 73,128 37,113 Deferred Charge, 12.611 7,467 9.286 3.742

                                                           $ 1.524.597   S1.455.770   $ 1.228.074        S 981.188 1.1 A B I I I T I E S Capitahzation (see page 10)                               S1.264.078    S1.192.215   $ 1.068,438        S 834.519 I ong. Term Debt, Due Within One Year                                -            -        14,201                  -

Short-Term florrowing 67.700 97,215 25,842 42.652 ()ther Current Liabilities 57.736 61.246 40,869 36.395 Accumulated Deferred income Taxes 108.755 83.489 62,919 47.457 Accumulated Deferred Insestment 1ax Credits , 24,907 19,945 14,253 10,914 Deferred Credit- 1,421 1,660 1,552 9.221 S t.521.597 SI,455.770 S t.228,074 S 981,188 Statements of Source of Funds Used for Construction (000 Omitted) YEAR ENDED DECEMBER 31, SOUltCE OF FUNDS Fund, Denved from Operations-Net Income After Disidende on Preferred Stock S 53,310 S 30.043 $ 38,415 S 37,483 Les -Dividends on Common Stock . 26.269 24,080 20,158 18.399 Earnings Itetained in the liu-ine33 S 27,011 S 5,963 $ 18.257 S 19,081 Depreciation . . 32,826 28.578 24,761 22.790 Deferred Income Taxes 21,262 20,570 13,782 4.368 Insestment Tax Credit (net) 5,612 5.692 3,309 1.310 Decrea.-c (Increase) in Net Current Assets-Exclusise of Short.Tenn Borrowing and Temporarv insestments , 677 (32.190) (15,660) 4,700 S 87.418 S 28.613 $ 44.449 S 52.252 Percentage from Operations . 61% l42 1 85; 28% Funds from Financing and Other Sources-Common Stock . S 27,611 S 17.559 S 47,940 S - Preferred Stock .

                                                                      -       44,445        50.013            30.035 First \lortgage Bonds                  .
                                                                      -            -       130,720           100,188 Convertil>le Debentures                                         -            -              -                 -

Electric Consumer Capital Notes . . 23,965 - - - Pollution Control Resenue Bonds - 10,309 - - Five. Year Bank Term Loan - 50,000 - - Joint Participation Agreement in Crutal River Nuclear Unit . 41,151 - - - First'.\1ortgage Bonds Retired . (14.201) - - Short. Term Borrowing . (29,515) 71,373 (16,810) 5,339 Temporarv Insestments - 14.201 (14,201) - Bond, and Preferred Stock Reacquired for Sinking Fund . (6,533) (5.021) (4,592) (J*- Other Sources (net) 347 11.666 3,333

         *e          '

S 57,026 S 200.331 S 196,423 $ 13 g brdentace from Financing and Other Sources . 39% 88% 82% 72% FUNDS USEli FOR CONSTRl'CTION . S 144,411 S 228.944 S 240,872 S 186.030-8 0007 245'

FLORIDA POWER CO R P O R ATIO N 1971 1970 1969 1968 1967 1966 1965

$ 927,742             $ 777.538    $ 708,410     $ 645.689     $ 382.291   S 541,212      S 503,188 149,319             137,353      125.896       112.396        99,639      87,765         77,746
$ 7711.423            $ 640,1115   S 382,514     $ 533.293     S 482.565   $ 453,417      $ 425,442 2,101               2,I59        2,36         2,473         2,128        1.201          1,206 31.033              32,039       2 0,9115      21,050        21.297      22,661          17,938 2 ,7 111            2,2 13       1.248         1,001           443       1,629            946
$ 817.3011            $ 676.626    $ 607,123     $ 557,817     $ 506,733   $ 478,938      $ 445,532
$ 690.343             $ 5fl8.334   $ 519.267     S 477.222     $ 441,723   $ 412.311      $ 387.801 37.313                6,175       9.700        12.000         2,775      10.000           5,400 28.615              25.564       24.705        20.215        18,124      15,987          16.696 13.089              10,083      37.299        34,787        32,!58      29.589         27.289 9.634               8.710       11.7 16       7.201         5.l!32      5.417           3.269 11.314              7,760       7.406         6.392         6,121       5,604           5.077
$ 817.308             $ 676,626    $ 607,123     $ 557.817     $ 506.733   $ 478,938      S 445.532 O
$ 31.915              S 29,782     $ 27,918      $ 24.125      S 21.820    $ 20,322       S   18,174 17.360              15,561       14,788        14.020        13.251      12,483         11,715 S     I1.585          $   14,221   $   13.160    S   10,105    $    8.569  $    7.839     $     6,439 20.161              18,316       16.301        15.221        14,367      12.575         12,109 3.006               2,784       2.512         2.629         2.569       2,300           1,779 921                (36)       1..'il5      1.369           385       2,178             729 (4.9 13)            (4.196)       4,555         1.343         2,506                       1,362 (5.419)
$ 33,736              S 31,089     $ 38.073      $ 30.670      $ 28,396    $   19,473     S 22.438 O l'&              39f6         56?f          44ft          59ek        46'4           36?6
$     12,737          $         -

S _ 19.721 _ _ - - _ 30,431 10.307 35,173 30,405 25.161 _ 55.799

            -                   -            _            _             _      19,789              _

31.138 (3.525) (2.300) 9.225 (7,225) 4 /20 0 (13.600) 6.000 (6,000) _ 995 995 (1,977) (13) 5.33I) (4.880) (6.I15) (4.606) (3.508) (3,323) (4.279) 2,In1 3,464 3.093 9d 27.099 $ 49,090 $ 29,831 2.629

                                                 $ 38.648      $

4.059 19,482 2,155 S 23.208 3.112

                                                                                          $ 39,055 7're                61'6         44'e          36';          41!;        51!6           64?f
$ 160,835             $ 80.179     $ 67.928      S 69.318      S 47.878    S 42,681       S 00041,193-246.'
                                                                                             /

r. -

• h- - .+t,

Capitalization (000 Omitted) g YEAR ENDED DECEMBER 31, 1975 1974 1973 1972 1.ONG TEltN1 DEUT First \lortgage Ilond. - 3% & h% Scrir3, Due Januars 1.1974 S - S - S 14,201 S 14,760 3W Senes Due Nosembec 1,1978 5.629 5,808 5,971 6,120 3N% Series, Due Juls I,1981 9.245 9,495 9,835 10,080 3N% Serie3, Due Noiemher 1,1982 9,966 10.266 10,538 10.800 3S?c Series, Due Nosember 1,1983 . 6,654 6,841 7,025 7,200 3%% Series, Due July 1,1981 7,970 8,192 11,430 8,640 3'.% Series, Due Jul( 1,1986 13,343 13,698 14,050 14,400 4 %% Seric3, Due J ul'y 1,1988 17,379  !?,999 18,438 111.f175 4%% Serico, Duc October 1,1990 18.429 18,875 19,312 19,750 4%% Serico, Due .\las 1,1992 19,313 19,750 20.188 20,625 4%% Series, Due Ap'il r 1,1995 24,698 25,275 25,800 26,325 4h% Series Due Nosember 1,1995 20,611 21.063 21,500 21,938 6%% Serie3. Due Augu3t I,1997 21,500 21,937 22,375 22,812 7% Serie3, Due Nosemher 1,1998 26,325 26,850 27,375 27,900 77.9 Series, Duc August 1,1999 35.000 35,000 35,000 35.000 9?i Series, Due Nmember 1,2000 40,000 40,000 40,000 40J)00 7%% Series, Duc October 1,2001 50.000 50,000 30,000 50,000 7N9 Sene3, Due June 1,2002 50,000 50,000 50,000 30,000 7%% Series, Due November 1,2002 50.000 50,000 50.000 503M N) 7%% Series, Due June 1,2003 60,000 60.000 60,000 - 8% Series, Due L)erember 1,2003 70,000 70.000 70,000 - Unamortized Premium 6,113 6,435 6.149 - I e33: liond Reacquired for Sinking Fund . 5,135 5,095 4,116 2 5,457 Long. Term Debt Duc within One Year - - 14,201 Net Amount Outstanding . S 557,040 $ 562,389 S 567,124 S 449 4W Serie, Comertible Debentures Due Aug.1,1986 19,494 19,494 19,494 19 8.50% Elec. Consumer Cap. Notes Due Oct.1,1977 12,826 - - - 9.l(fi Elec. Con 3umer Cap. Notes Duc Oct.1,1980 11,298 - - - Th% Pollution Control Resenue Bonds Due 2004 10,575 10,575 - - llank Term Loan, Due Slay 1,1979 50,000 50.000 - - other Long. Term Debt 292 350 353 - Total Long. Term Debt S 661,525 $ 642.808 S 586,971 S 469.262 CUNIELATIVE PREFEllRED STOCK (Par Value $100) 49 Seric> $ 4,000 $ 4,000 $ 4,003 $ 4fM)0 4.Nfi Series 4,000 4,000 4,000 4,000 4.7554 Series 8.000 8,000 8,000 8.000 4.4tfi Serie3 7,500 7,5(M) 7,500 7,500 4.511% Series 10.tXX) 10,000 10,000 10,000 8.80'i Series 20,000 20fR)0 203M)0 20,000 7.40'i Series 30,000 30,000 30,000 30,000 7.76'i Series . 50,000 50,000 50JKK) - 10% Series 43,420 15,000 - - Premium on Preferred Stock 962 962 962 442 Total Preferred Stock $ 177,882 S 179,462 S 134,462 S 83,912 CONI \lON STOCK EQUITY Common Stock, Par Value S2.50 $ 35,445 S 32,185 S 29.560 $ 26,435 Premium on Common Stock 197,081 171,631 155,487 109.706 Capital Surplus 1,443 1,369 1,369 1,369 Retained Earnings 190,702 164,760 160,589 143,1105 Total Common Stock Equity . S 42L671 S 369,945 S 347,005 S 281,315 Total Capit.lization $ 1,26 L078 S1,192.215 $ 1,068,438 S 834,519 CAPITALIZATION RATIOS LONG.TER1! DEBT . a2.35, 53,9g 34,99 3, PREFEllRED STOCK 14.1 15.1 12.6 10, CO\l%10N STOCK EQUITY 33.6 31,0 32.5 33.7 10 100.0% 100.0'4 100.0'f 100.0% [*'_ i, 0007 247

FLORIDA POWER CORPORATION 1971 1970 1969 1968 1967 1966 1965 S 15,119 $ 15,478 $ 15,836 $ 16,195 S 16.554 $ 16.913 $ 17.271 6,26ft 6,417 6,566 6,715 6.863 7,012 7,161 10,325 10,570 10.815 11.060 11.305 11,550 I t,795 1I 063 11,325 11,588 11,850 12,113 12,375 12,638 7,375 7,550 7,725 7,900 11,075 11.250 11.425 11.115 0 9,060 9,270 9,480 9.690 9,900 10,110 14,750 15,100 15,450 15,800 16,150 16,500 16,850 19.313 19,750 2 0,1118 20,625 21,063 21,500 21,938 20,18. _0,625 21.062 21,500 21,937 22,375 22.812 21,063 21.500 21,938 22,375 22,813 23,250 23,688 26.850 27.375 2,900 28,425 28,950 29,175 30.000 22,375 22,813 23,250 23,688 21,125 24,563 25.000 23.250 23,687 24.125 24,562 25,000 _ _ 211.125 28,950 29,475 30,000 - - - 35,000 35,000 35,000 _ _ _ _ 40JH)0 10,000 _ _ _ _ _ 50JHM) _ _ _ _ _ _ w me. _ w - em - 5.500 5.I56 5.264 4,136 3,993 3,116 2 4,411 651 I9.19 1 S 310,0l & 19,763 S 274,924 l'),998 S 216,039 20.000

                                                                   $ 220,643 20,000
                                                                                $ 199.801 20,000 S 203.647 S 371.207              S 329.807      3 291,922      S 266.039    S 210A15     S 219.801          S 203.647 S     4.000            $      1JHH)   $      4.000   $     4,000  S     4.000  $     4,000        S     4JH)O 1.000                  1,000          4j)OO         4,000        4.000        4.000              4.000 11.000                 11,000          11,000        8,000        11.000       11,000             8.000 7.500                  7,500           7.500         7.500        7,500        7,500              7.500 10JH)O                 10JHH)         10J N)O       10,000       10.000       10.000              10.000 20JH)O                 20,000                 -           _             _              _                  _

31 31 31 31 31 31 31

 $ 53.531               S 53,531       S 33,531       S 33,531     S 33.531     S 33.531           S 33.531 S 26.135               $ 21,0111      S 21.007       $ 24.007     $ 24,007     S 21.007           S 21J)07 109.706                 68,359         611.I 3 7      68,135       68,135       68.135             68,135 1.369                 1,3t i 9        1.369         1.369        1.369        1,369               1,369 125.095                III 250         97,301         81,141       74.036       63.468             57,1I2 S 262.405              5 2nt,996      S 190,Ill 4    S 177,652    S 167.547    S 1511.979         $ 150.623 S 690.343              S 5811.334     8 519.267      S 177.222    S 141,723    S 412,311          S 3fl7.801 i1.2f;                36. Ifr         an.8'6        35.II's      54.5?c       a3.3%              a2.76 7 .11                 9.I             6.,i          .0           7.6          11. I              8.7 311. 0                 34.8            36.7          37 9         '17.9        3 11. 6            3 8 .11 14.H).t PF     ,       100.0ff        100.0%        100Jf?        100.0%       100Jff             IOO;tf6    gi U007 248

Summary of Earnings YEAR ENDED DECEMBER 31, 1975 1974 1973 197 OPERATING REVENUES $50 L495.991 S104,993.400 S255.044.568 5201.856.866 OPEIL\ TING ENPENSES Fuel .

                                                   $233.138,001   S200.270,057    S 75.086.996   S 41,060.779 Purcha.ed Power                                   24,201.709      31,249.530      14,636,274      5.176,947 Other                .                            40.123.866      36,647,215     34,041.3111    29,276.318 Total Operation                              $299,463.576   $268,166.fl02   S123,764.5fl8  S 75.514,044
   \laintenance                                       17,611,40l!    l7.111,741      15,983.272     12,559.876 32.826,431      28,578,534     21.761.278     22,790.385 Depreciation Taxes other than income taxe3                     30,913.067      24,202,920      17.988.685     14,901,947 Federal income taxc3                                8.144.000    (14,118,000)      2.091,000     15.427.000 State income taxe3                                  1.150,0(H)       (229,000)       631,000      1.flT3.000 20,401.000      19,585,000      13,782,000      4.36fl.000 Deferred income taxes ( iet)                                                                      1,310,000 5.612.000      5.692.000       3.309,000 Inse-tment tax credit (net)

Total Operating Expen-e> . S416.121,482 S349,289,997 S202.310,823 S148,744.252 OPEllATING INCO\lE S 88.374.509 S 53,703.403 $ 52.733,745 5 53.112.614 0111EllINCOilE AND DEIWCTIONS Allowance for fund, u.-ed during construction S 30,415,579 $ 36.666,403 $ 26,965.584 $ 13.962.338 Gain on reacquired bond- 1,702,495 1,946.833 1.!44,557 J ,140,150

   \li-cellaneous other income and (deductions)         (997.503)      1.274,407        (87.393) _

388.033 Total Other income and Deduction, S 31,120,571 S 39,887.643 $ 28.022,748 $ 15,490.521 INTEREST CilARGES Interest on long-term debt S 43.891,945 $ 43,113.2fll S 31,770,065 S 24,17 Other interest expen3e 8.560,000 10.619,979 4.853.047 2.42 Total Interest Charges S 52.451,945 S 53,763.260 S 36.623,112 S 26.596,253 NET INCONIE S 67,043,135 S il,827.786 S 44.133,381 $ 42.006,882 DIVIDENDS ON PREFEltltED STOCK 13,732,750 11.784,500 5,718.333 4,523,833 EAltNINGS APPLICABl.E TO CONiilON STOCK S 53.310.385 S 30,043.286 S 38.415,048 S 37,483,019 Di\ IDENDS PAID ON CO.\l\lON STOCK S 26.269.494 S 24.080,470 S 20,158.126 S 18,398.689

 'al ARES OF CO\lilON STOCK- Average                  13.246.038     12,436,459      11.303.126     10.573,959 Sil ARES OF CO\l%10N STOCK-End of period             14,177,817     12.873,959      11.823,959     10.573,959 EA RNINGS PEli SHAltE- Average                        S     4.02      $     2.42     S     3,40     $      3.54 ANNUAL DIVIDEND RATE-End of period                    S     2.10      S     1.95     S     1.80     $      1.74 YIELD ON Coil \lON STOCK-End of period                    7.159          14.44%          6.55%           3.36%

DIVIDEND PAYOUT-Percent 52% 81% 53% 49% llOOK VALUE OF CONDION STOCK-End of period S 29.95 S 28.74 S 29.35 S 26.60 PRICE OF COMMON STOCK ON NEW YORK STOCK EXCHANGE HIGil . 29 % 30 % 51% 51% LOW 13b 10 % 22 36% 29 % 13 % 27% M CLOSE , PRICE. EARNINGS RATIO-End of period 7.3 5.6 8.1 ~

      .                                                                                     0007249 u               ,.

FLORIDA POWER CORPORATION 1971 1970 1969 1968 1967 1966 1965 $ 176,539,619 $ 158,i 14,572 $144,739,865 $ 132,332,464 $119,919.595 $ 111,672,922 $ 99.826,693 $ 37,266,951 $ 31,801,308 $ 21,317,379 $ 23,579.816 $ 21,857,448 $ 19,708,742 $ 18,284,220 3.192,863 1,140,391 4,722,6&& 3,608,733 1.023,281 4.228,394 2,951,449 25,063,787 23.991,013 20.295,793 17,616,341 17,013,713 16,435.163 14,497,136 $ 65,823,601 $ 57,238,745 $ 49,865,856 $ 44.804,890 $ 39,894,442 $ 40,372,299 $ 35,732,805 I I ,950,338 9,346,398 7,682,597 6.806,185 6,901,430 7,073,968 5,718,701 20,I f 4,Iili 18,315,554 16,300,721 15,221,390 14,366,701 12,575,314 12,109,116 13,651,717 12,677,432 11.253,029 9,316,694 8.636,008 6,717,694 6,383,789 14.211,000 14,005,000 17,389,000 16,957,000 14,861,000 11,379,000 , 11,701,000 3,006,000 2,731,000 2.512,000 2.629,000 2,569,000 2,300,000 1,779,000 921,000 (36,000) I.545,000 I 369,000 385,000 2,178.000 729,000 $ 129,760,810 $ 114,331,129 $106,550,203 $ 97,107,159 $ 87,613.581 $ 82,596,275 $ 74,156,4II $ 16,778,779 $ 43,813,413 $ 38,189,662 $ 35.225,305 $ 32,306,014 $ 29,076,647 $ 25,670,282 $ 7,812,136 $ 3,392,809 $ 4,150,439 $ 1,985,945 $ 680,432 $ 2,022,474 $ 1,761,879 1,219,935 1,167,i10 1.370,662 670.201 648,06-75,357 176,473 (473,697) (146,700) (178,409) (169,131) $ 9,137,128 $_ 4.656,n10 (203,379) $ 5,697,574 $ 2,182, k19 $ 1,181,797 $ 1,844.065 $ 1.592.748 811,129 $ 15,165,825 $ 13,224,268 $ 10,577,319 $ 9,610,655 $ 8,624,141 $ 6,884.513 1.873,519 2,010,152 1,203,427 1,193,769 541,966 462,162 692.127 $ 20,684,6711 $ 17,175,977 $ 14,427,695 $ 11,771,088 $ 10,155,621 $ 9,086.303 $ 7,576,640 $ 35,231.529 $ 31,294,306 $ 29,159,541 $ 25,636,666 $ 23,332,190 $ 21,834,409 $ 19,686,390 3.286.667 1,512,000 1,512,000 1,512,000 1,512,000 1,512,000 1,512,000 $ 31,914,862 $ 29,782,306 $ 27,917,541 $ 21,121,666 $ 21,820,190 $_20.322,109 $ 18,174,390 $ 17,359,745 $ 15,560,882 $ 14,788,004 $ 14,019,752 $ 13,251,546 $ 12.483,311 $ 11,715,135 10,172,395 9,605,010 9,602,597 9,602,570 9/202,570 9.602,570 9,602,570 10.573,959 9.607,310 9,602,610 9,602,570 9,602,570 9,602,570 9,602,570

   $       3.14       $     3.08     $     2.91      $      2,31     $     2.27      $       2,12     $      1.89
   $       1.68       $     1.68     $      1.60     $      1.52     $      1.41     $       1.36     $      1,28 3,63%            3.05%          3.23%            3.64%           3,164            2,72%           2,75%
           .We              55%             55%             61%             63%              (4%             68%
   $ 24.84            $ 21.34        $    19.87      $     18.50     $ 17,45         $ 16.56          $    15.69 57 %             aa             a2 %             49 %           54                51 %            52 40               40 %           42               36 %           39                39 %            45 %

9 46 % 14.7 55 17,9 49 % 17.0 11 % 16.6 45 % 20.0 50 23.6 46 % 24.6 0007 250' i3

 ?. . .,

Revenue and Expense Statistics YEAR ENDED DECcMBER 31, 1975 1974 1973 197 OPERATING REVENUES S504.495.991 S40 L993,400 S255.014.568 S201.856.866 Per K% 11 Sold 3.6184 3.042d 1.879/ 1.752c Per Average Customer S 811.37 S 669.04 $ 449.87 8 391.72 OPEllATION EXPENSES Production Expen3es Cost of Fuel S235,138.001 $200,270.057 $ 75,086,996 S 41.060.779 Per K%!! Sold 1.686v 1.5Gli .553f .356e 9 of Operating Revenue. 46.61% 49.45% 29.44% 20.34% Purchased Power 5 24.201,709 $ 31.249,530 $ 14.636.274 S 5.176.917 Per K%11 Sold .174( .235v .108e .045e

                  % of Operating Revenue-                  4.80%             7.72%          5.74"           o.56%

Other Production Expenses . S 6.297,117 S 5.888.743 $ 5.321,084 S 4.676.201 Per KWII Sold .0 15( .014v .039( .0 tlp

                  % of Operating Resenues                   1.24%            1.45%          2.08%          2.32%

Total Production Expenses , $265.636.827 S237,408.330 $ 95,044.354 S 50.913,927 Per KWil Sold 1.905v 1.783t .700f .442p

                      % of Operating Resenues .           52.65%           58.62%          37.26%         25.22'l Transmi.* ion Expense,                 S 1.618,590      S 1.961.024     S 1.524.133    S 1.326,376 Per KWil Sold                                .012d            .015(          .01It
               % of Operating Resenues                        .3 25;           .48',          .60%

Distribution Expenses S 6,359,392 S 6.390.661 S 5,558.274 S 4.591 Per Average Customer $ 10.23 S 10.56 $ 9.80 $ 8.91

               % of Operating Resenues                      1.26%            1.58%          2.185f         2.27%

Customer Accounts Expenses S 10.586.305 S 7,916.876 S 6,088,475 S 5.328,964 Per Average Customer S 17.03 S 13.08 S 10.74 S 10.34

               % of Operating Revenues                      2.10%            1.96%          2.39%          2.64%

Customer Advisory Expen.e3 S 639,109 S 899,161 $ 1,799,771 $ 2,037,101 Per Average Customer S 1.03 S 1.49 S 3.17 S 3.95

               % of Operating Resenues                        .13%             .22%           .70's         1.01%

Administratise and General Expenees . $ 14,623.333 $ 13,590.750 S 13,749,576 S 11,315.958

               % of Operating Revenues                      2.90's           3.36%          5.39%          5.61%

Total Operation Expenses $299,463.576 S268.166.802 $123,761.588 S 75,514.044 Per KWil Sold 2.148/ 2.014v .912f .655(

                    % of Operating Resenues               59.36%           66.21%          48.52%         37.11%

11AINTENANCE EXPENSES S 17,611,408 S 17,411,741 S 15,983.272 S 12.559.876

             % of Year End Gros Plant                       1.08%            1.14%           1.20%          1.14%
             % of Operating Resenues                        3.49%            4.30%          6.27%          6.25f Total Operation and 11aintenance Expenses .           S317,074,984     S285,578.513    $139.747.860   $ 88.073.920 Per KWil Sold                         2.274p           2.145v          1.030v           .7 ' ' '
                    % of Operating Revenues               62.859;          70.51%          51.79%         4:

14 d' ' 'f- ' ~ 0007 251

FLORIDA POWER CORPORATION 1971 1970 1969 1968 1967 1966 1965 $ 176.539.6I9 $ 1511,144,572 $144,739,1165 $ 132.332,164 $ 119,919,595 $ 111.672,922 $ 99,826,693 1.751/ 1.752d 1.790f 1.881d 1.970e 2.0114 2.072( $ 373. ll $ 359.52 $ 349.69 $ 339.11 $ 329.94 $ 316.66 $ 295.30 $ 37,266,95 6 $ 31,804.3011 $ 21,147,379 $ 23,579,816 $ 21,857,448 $ 19,708,742 $ 18,2tM.220

          .370/                .3524              .307(            .335(            .359t            .3604               .379f 21.11%               20.1l!6            17.17G            17.HZE           18.234          17.654              18.3f;

$ 3.192.1163 $ I,140.391 $ 4,722,614 $ 3,608.733 $ 1,023,28i S 4,228,394 $ 2,951,149

          .034(                .016/             .0584             .05I(            .017e            .077(               .06I(

l.91!4 .91!e 3.2f/f 2.734 .854 3.79'i 2.969 3 4.3211,0l0 $ l.309.281 $ 3,174,601 5 3.018.678 $ 2.966,739 $ 2,713,197 $ 2,603.170

          .0 15(               .0 18/             .0 13/           .0 13(           .019/            .050(               .05 it 2.57N               2.72'i             2.40's            2.3(Es           2.17 4          2.434                2.604

$ 45.287.81t? $ 37,553.983 $ 33,(M4,6bt $ 30.237,227 $ 25,147,468 $ 26.650,333 $ 23.839,139

          . M9t                .416e             .4084             .129(            .123(            .487               .4944 25.669               23.74%            22.83%            22.115ff         21.554           23.87!s             23.81rf
                     $ 1.361,!50       $ 1,052.695       $     831.109    $     831.728    $     771,938       $     6211.265 5 81,911   .012t
           .67!;
                              .015i
                                .864
                                                 .013/
                                                   .734
                                                                   .012(
                                                                    .6!!6
                                                                                    .014p            .014f              .0134
                                                                                     .694             .69%                .634 3 3.70 t .647         $ 1,314.566       $ 3.203,183       $ 2,954,170      $ 2,820,421      $ 2,775,806         3 2.366,209

$ 7.83 $ 9.88 $ 7.74 $ 7.57 $ 7.64 $ 7 .11 7 $ 7.00 2.1(f! 2.754 2.2Ifi 2.23% 2.35ff 2.19 4 2.37f4 $ 4.862,972 S 1,376.!!54 $ 3.680.303 $ 3.226,137 $ 3,017,819 $ 2,952,170 $ 2.773.814 $ 10.29 $ 9.95 $ 8.89 $ 8.27 $ 8.18 $ 8.37 $ 8.21 2.754 2.77fs 2.549 2.41% 2.5fG 2.f>l4 2.7tff $ 2,879,ll?5 $ 2,185,I65 $ 2,155.510 $ 2,329,386 $ 2,300,559 $ 2,I85.970 $ !,913.489 $ 6.(P) $ 5.65 $ 5.93 $ 5.97 $ 6.03 $ 6.20 $ 5.66 1.634 1.574 1.701 1.764 1.9%& I.964 1.924 $ 7,m P),282 $ 7,117.027 $ 6,429,501 $ 5.206,561 $ 5.076,417 $ 5,035,762 $ 4,211.859

4. liff 4.5(Yl 4.414 3.94% 4.21% 4.504 4.20%

$ 65.823,60% $ 57,238,745 $ 49,865.1156 $ 44.801,890 $ 39,891,442 $ 40.372,299 $ 35,732,805

          .653/               .634t              .617t             .637t            .656t           .738(               .742d 37.299              36.194             34.45%            33.86?f          33.27%          36.15%              33.8(fe

$ 11,950.338 $ 9.346.398 $ 7.682,597 $ 6.806,185 $ 6,901.430 $ 7.073,968 $ 5,7111,701 1.294 1.204 1.Off; 1.054 1.l94 1.diff 1.144 6.77% 5.91fi 5.3 If, a.144 3.759 6.33ti 5.734 $ 77,773,912 $ 66.585.143 $ 57,548,153 $ 31.611.075 $ 46,795/172 $ 47,446.267 $ 41,451.506

         .771/                .737v              .712d             .733/            .770t           .867t               .850e S41.0V;                     42.Ifff            39.76%           39.00%            39.0M            12.18 4 -           41.53'i

>r

v. .

               , .. o                                                                              {0007?52

Revenue and Expense Statistics (continued) YE AR ENDED DECEMBER 31, 1975 1974 1973 197 DEPl!ECIATION S 32.826,131 S 2fl.57ft.531 S 21.761.2711 S 22.790.385 Si of Year End Gro-, Plant 2.02'i 1.IIT'i 1.116'i 2.06'i

     'i of Year End Deprecial.le Plant                     2.!!!!e           2.6 154          2.77';               2.'HYi
     'i of Operating Itrsenu                               6.50'i            7.0 654          9.7 154             ll.2'f; TANES OTilElf Til \N INCO\lE TANES             S 30,913.067      $ 18.202,920       $ 17.9118,6115     S 14.901,917
     'i of (Iperating ites enuco                           6.13'i            3.4ffi           7.05'f               7.3ffi INCO\lE TANES Pay abic Currently -Federal                S 11.111.000      S (l4,1 Ifl.(HH))  S 2.091,(H10       S 15.427.000 Pay al,le Currently .* tate                     1,150.000          (229 (H M))        631,(H H)        1.873.000 Deferred to Suli-equent Year-(lther Propert3                           21.831.000         21.164.(H)0        15.015.000          5.152.(H H)

Non Property 1.736,0(HI - - - Deferred Income Taxre-Credit. Accelerated Amortization Property (516,000) (516,000) (516.(H N)) (516.(H HI) Other Property (3.740,(H H)) (1,063,000) (747JH NI) (56fl.000) Non Property (1.910.000) - - - Inse trnent Tax Credit Deferred to Subsequent Year

• 6.281,000 6.172.O(H) 3.6933HMI 1.9611.000 Insretm. nt Tax Credit Allocated to Current Year income (672.000) (480.000) (381.000) ( 6.~

lotal income Tasr> . S 35.307,000 $ 10.930.000 $ 19,fil3,000 S 22.9711. >

              'e of Operating flesenues                    7.00'i            2.7(Yi           7.77?f             II.3ffi TOTAL. OPEllATING ENPENSES .                   S416.121,482      S349.2119,997      $202,310.823       S148,741.252 fi of Operating Itesenuco                           !!2.14f4          fl6.255;          79.32fs             73.69'i OPEllAT1.NG INCONIE                            S 88.374,509      S 55.703.403       S 52.733,743       S 53,112.611 FINANCI AL TRENDS ItATIO OF EAltNINGS TO FINED Cil AltGES                    3.05              2.01             2.74                 3.42 10\TIO OF EAltNINGS TO FINED CilAltGES PLUS PilEFEltitED STOCK DIVIDEND llEQl' lite.\lENTS (PitE.lNCO\lE TAN BASIS)             2.15               1.58             2.24                2. .

AVAILAllLE FOlt CONiilON S 53,310.385 S 30,043.286 S 38,415.048 $ 37.483.049

     ' <of Year End Equity                               12.555;             8.12'i          11.07?i             13.32';

INillEDDED COST OF LONG.TEful DEBT 6.84'i 6.9 75; 6.5 35; 6.13'; lllBEDDED COST OF PREFEltitED STOCK 7.71!i 7.737; 6.9 75i 16 W

       ,, 3              ,

0007.253 ,

FLORIDA POWER CORPORATION 1971 1970 1969 1968 1967 1966 1965 $ 20.164,1111 $ 18,315.554 $ 16.300,721 $ 15.221.390 $ 14.366.701 $ 12.575.314 $ 12,109.116

2. I 7'i 2.36'i 2.31ff 2.36!F 2.17'; 2.3%i 2.41ff 2.81'f 2.6?!f 2.5ff 2.6ti's 2.66'e 2.47ff 2.Prf i1.17; 11.58'i 11.26's 11.50'f 11.9fff 11.26ff 12.13'6

$ 13.651.717 $ 12.677,132 $ 11.255.029 $ 9.316,691 $ 8.636.008 $ 6.717.694 $ 6.383.789 7.73'i fl.03'i 7.77'i 7.Olff 7.20'i 6.0fi t>.3'rf $ 14.2 ll.tHH) $ 14,005,000 $ 17,389.0lH) $ 16.957,tH)O $ 14.1161.000 $ 11.379,000 $ 11.701,000 3,951.0m) 3.636,000 3.233.WW) 3.211.000 3.111.000 2.1145.000 2.323.')00 (516 (H M)) (516.000) (517.000) (516.000) (519.000) (519.000) (539.000) (429.mH)) (336.000) (204.t Whl) (96.000) (53.000) (26.000) (5.000) l .221.m H) 252.000 1,776,000 1.568.000 556,000 2.280.m)0 1110.000 ( 3m).m H)) (288.tHH)) (231.000) (199.0G)) (171,000) (102,000) (81.00)) $ lit.171.mH) $ 16.753.000 $ 21,416,000 $ 20,955,000 $ 17.1115.000 $ 15.857.000 $ 14.212.000 10.2'ri 10.5'ff I4.8%6 15.84'f 14.86#6 14.20'; I 4.24's $ 129.760.1110 $ l l t,331.129 $ 106.550.203 $ 97,107.159 $ 87.613.581 $ !!2.596,275 $ 74.156,411 73.50'f 72.3t Fi 73.6lif 73.3fff 73.06ff 73.96's 74.7vf $ 16.778.779 5 43,813,413 $ 38.I89,662 $ 35.225.305 $ 32.306.014 $ 29.076J>l7 $ 25.670.282 3.55 3.75 4.53 4.96 5.0.2 a.15 5.47 2.87 3.31 3.83 4.02 4.00 4.00 4.08 $ 31.941.862 $ 29,782,306 $ 27,917,541 $ 21,121.666 $ 21.820.190 $ 20,322,409 $ 18.174.390 12.16'f I 4.53'f I4.65!; I3.58f6 13.056 12.78'l 12.07?f 5.8th .i..itYf 5.0ff 4.6ff 4.33ff 4.1yf 4.09'i 6.1 l'f 6.11ff 4.51ff 4.51ff 4.5 l's 4.51f; 4.51ff A 3 *^' r u . > 17 0007 254

Revenue and Kilowatt-Hour Sales Statistics YEAR ENDED DECEMBER 31, 1975 1974 1973 197 OPEli \ TING 1;EVENI'E8

   !!c-idential                           $221,133.!!!5   S illo.5115.639   $ 125.514.921       $ 98.619.161 Com mercial                             132.530.143     102.935.023         63.674,552         31.fil6,900 indu-trial                               69.986,123       54.110.956        211.253.952        23.!!52.3111 5treetLighting                            3.003,174         2,612,511        1.!120.259          I.590.628 Other Sales to l'uhlic Authoritie3        9.052.820         7.901.088        4.540.065           3.738.11I Other Electric l'tilitic3                60.923.l(>l      30.2111.666       26,056.375          111.5411.2 9 2 Other Electric lin enues                  7.!!66.447        6.266,31.        a,154.414           3,631,456 Total                              $501,495,991    $401.993,400      $255.014.5611       S201.!!56!!66 l'erce ntage Increa e                    24.6ff            58.lfi            26.3';              14.3';

OPEllATING llEVENt'ES-l'ercentage l'esidential 1,L83'i 44.595i 49.22'; 48.!!?'i Commercial 26.27 25.42 24.97 2 5.611 Indu trial 13.87 13.44 11.08 11.!!2 Other 16.03 16.35 I t.73 13.63 Total 100.00!; 100.0(f; 100.005; 1( Kil.OWATT.llol:ll S ALES-Thousands lle3idential 5.411,991 5.285,716 5,793.242 4.717.235 Commercial 3,187,479 2,935,162 2,836.292 2,403.39tl Industrial 2,479.378 2,421,715 2.349,572 2,196,766 Street Lighting f16.11!! 82.1119 76,563 71,721 Other Sales to Public Authorities 289,635 292,438 326,170 304.681 Other Electric Utilities . 2.489,063 2.295.1143 2.191,438 1.8 2 8.2117 Total 13,943.664 13.313,713 13.573.277 11.522.088 Percentage increase 4.75i (l.95i) 1 7.85; 14.3'; KILOWATT.flot:ll SALES-lheentage lle3idential . 38.815i 39.70'i 42.685i 40.94fi Commercial 22.86 22.05 20.90 20.86 Industrial 17.78 18.19 17.31 19.07 Other 20.55 20.06 19.11 19.13 Total . 100.0054 100.00'; I00.0004 10 "' 0007 255 e  ;,

FLORIDA POWER C O R P O R ATI O N s971 1970 1969 1968 1967 1966 1965 $ !!?,390.135 $ 78,1163,750 $ 71,031,627 $ 64,323,902 5 57,2411,941 $ 54,399,532 $ 48,309.229 16,251,202 41,101,035 38,744,279 35,901.597 33,210,451 31,2111,304 28,166,315 20,951.590 19/270.752 19,226,603 17,657,135 16,509,682 14,213,278 12/>l9,996 1.452,612 1,309,(M4 1,197,965 1.096,686 972,847 365,lMO 408,876 3,512,926 3,123,935 2,899,143 2,752,215 2,580,664 2,715,480 2,493.877 13.I16.343 11,39i,576 9,461,567 8,675.213 7,666,344 7,I59,230 6,140,479 3,561,811 2/>1M,480 2,175,381 1,925,656 1,730/243 1,539,258 1,355,921 $ 176.539.6I9 ' $1511,I44,572 $ 144,739,865 5.32,332,161 $119,919,595 $ 111,672,922 $ 99,826,693 11.6'; 9.3ff 9.4ff 10.4's 7.4% i1.9's 5.If& 49.50% 49.87!; 49.0W/c 48.61% 47.74% 48.71% 48.39's 26.20 25.99 26.77 27,13 27.69 27.98 211.2 2 11.37 12,11 13.28 13.34 13.77 12.76 12.67 12.43 11,70 10.87 10.92 1 0.110 10.55 10.72 40.(Kre 100.tWff 100.00's 100.0(f6 100.00'i 100.00'f 100.00'; 4,133,335 3,696,1I4 3,196,126 2,671,341 2,212,716 2,066,235 1.1103,I63 2,134,106 1,814,192 1,627,771 1,126.150 1,250,239 1,136,359 1,019,706 2,029,686 1,912,379 1.891,143 1,732,481 1,580.1115 1.353,287 1,190fil2 67,921 63,613 60,(M4 55.603 49,482 17,492 20.550 285,713 260,832 213,946 225,938 204,775 207,450 1115,8 8 5 1,132,101 1,251,892 1,068,400 925,167 782.537 691.025 598,147 10,083,165 9,029.022 8,087,130 7,036,900 6,080,541 5,471,848 4,818.063 11.7% 11.6fa 14.9'e 15.7% 11.1% 13.6's 9.4% 40.99's 40.9l!& 39.52% 37.96f; 36.39'6 37.76's 37.43% 21.17 20.43 20.13 20.27 20.56 20.77 21.16 20.I3 21.I8 23.38 21.62 26.00 21.73 21.71 17 71 17.15 16,97 17.15 17.05 16.74 16.70 100.(Mfi 100.0We 100.0(YG 100.00's 100.00's 100.0(ff 9).00'; v (r i , .-' 0007 2'56 19

Customer and Revenue Statistics YEAR ENDED DECEMBER 31, 1975 1974 1973 g 1972 NLL\!!iElt OF C1'STOilEllS4 car End itesidential 573.070 556.236 333.199 4117.1 7 3 Commercial . 61.273 60,3511 66.138 53,757 Industrial 1,473 1,489 1.479 1,122 Street 1.ighting 1,393 1,488 1.313 1.151 Other Saler to Public Autin>ritie, 251 129 129 128 Other Electric l'tilitie, 125 117 109 106 Total Cu-tomer>-Year End , 6 37,7115 619.1137 5911.367 515.737 NU.\lllEll OF CI'STOllEll8- As erage lle idential . 357.fl93 541,70;' 305.546 459.001 Commercial . 60.598 60,4711 58.455 53.606 Industrial 1,466 1,486 1.156 1.3114 Street I.ighting 1.554 1,422 1.212 1.0 lf! Other Sale, to Public Authorities 147 129 129 1 011 Other Electric Utilities 122 115 107 ' Total Cu. tomer .- Average 4 2 1,7110 605.332 366.933 .' Percentage increa-e 2.79 6.f!'l 10.(fl 9.0'; ItESIDENTIAL SEltVlCE-Average Annual KWii Sales per Customer 9,701 9.75fl i1.459 10,277 Itesenue per Cu tomer S 396.37 S 333.37 S 248.34 S 211.92 linenuc per KWil 4.09( 3.42v 2.17f 2.09/ CO\;\lERCIAL SEltVICE-Aserage Annual KWil Sales per Cu3tomer 52.600 48.533 48.521 44.fl34 Rnenue per Customer S 2.187.04 5 1,702.02 S 1,089.29 $ 967.18 Revenue per KWil .. . 4.16v 3.51/ 2.244 2.16( INDUSTitl AL SEftVICE- Average Annual KWii Sales per Customer 1,691.254 1.629.687 1.613.717 1,5117.259 Rn enue per Customer $47,739.72 S36,615.72 S19.405.19 $ 17 '" ' ' Resenue per KWil . 2.82( 2.25( l.204 20 W~J 0007 257

FLORIDA POWER C O R P O R A TIO N 1971 1970 1969 1968 1957 1966 1965 145.922 413,786 387,193 365.291 344,267 326,249 311,462 51,108 47.0211 14,113 42.054 39,972 38,773 37.622 1.3 lte 1.263 1,229 1,1 at 1,0117 1,012 964 1.022 #19 3 6 19 534 403 80 74 127 126 125 122 122 73 67 99 93 83 80 78 73 69 499.624 463,189 433.394 409.2fm 385,909 366,290 350.238 121,165 392,593 368,804 347,466 328,350 313,205 299,961 19,072 45.033 43,089 40,953 39,064 38,228 36,951 1,313 1,248 1,209 1,131 1,061 1,007 936 970 793 600 4 711 374 77 73 1 211 126 121 123 120 71 67 95 89 11 3 79 77 71 68 472,783 139,1182 413,909 390.230 369,046 352,659 338,056 7.5% 6.34 6.14 5.7'1 4.7!6 4.3f6 3.94 9.111 4 9,i15 8.666 7.b88 6,739 6.597 6,011 $ 207.50 $ 200.88 $ 192.60 $ 185.12 $ 174.35 $ 173.69 $ 161.05 2.1 I t 2.13r 2.22d 2.41( 2.59d 2.63p 2.(44 43,189 40,952 37,777 34,821 32.005 29,726 27,596 $ 912.58 $ 912.69 $ 899.17 $ 876.65 5 850.15 $ 817.42 $ 762.26 2.1Tf 2.234 2.38/ 2.52t 2.66p 2.75f 2.764 1.515.!!38 1,532,355 1,564.221 1,531.1114 1,489,929 1,343,880 1.272.021 7.01 $ 15,761.80 $ 15,902.90 $15.611.97 $15.560.49 $14,146.25 $ 13,514.95 9l.03i 1.03e 1.02p 1.024 1.04, 1.054. 1.06p

                                                                               '0007 258 s - -       '#

21

Revenues and Kilowatt-Hour Sales from Industrial C c YEAR ENDED DECEMBER 31, 1975 1974 1973 1 ItEVENl E8

    \ lining                                              $38.927.4114     S26.!!35.549   $13.21:5.651    S l 1.697.430
     \lanufactured Food,                                     9.531,752       7,766.907       1.273.447       3,439.609 Elet tronics \lanufacturing and I!c carch               6.231.372       5,317,911      2.809.357        2.369.41u1 Chemical-                                                6.156,556       6.121.211      2,711.087        2.11 1.7W >

Non. Electrical Alachincr3 1,189,779 1.088.443 713.!!56 390.f pl Fabricated \letal Products 1,137,870 891.582 550,166 467.766 Printing . 1.073.2811 862.40,3 .302.281 397.0311

1. umber and %'ood Product.- 723.601 1,004.51.3 .10.882 5ft3.467 Stone. Clay , and Glas- Products 5ct1,631 577,193 413.f 49 352.291 Other Indu-trial- 4.425.087 3,61 5.1110 2.253.573 1.143.520 Total Industrial Resenue, . $69.986,423 S54,410,956 f28,253,952 S23.l:52.31tl Ku 118 A1.E8 (000 C mitted)

    \linine                                                  1.451.301        1,291,318      1,205.516        1,134.121
     \lanufactured Food.-                                      319,259          326.1111       327,372          2 7 7.5114 Electronic -51anufacturing and flesearch                  209,003          217.482        222,473          209.475 Chemical,                                                  253,1!!7         J22.Oll!!      312.74f t        310.1156 Non-Electrical \lachincrv    ~

29.695 32,924 35,1134 30,140 l'abricated .\letal Prodnct.- 31,468 30,799 29.293 27,056 Printing " 9.5 011 29,429 28,467 23,330 1 umber and % oud Product.- 18.746 34.491 43,418 311.!!6 1 Stone, Clav and Glas Products . 13.235 16,036 18.826 15,469 Other Inditrial- 123,976 120.337 125.595 109.!!?! Totallndu trial KRll Sales 2.479.378 2,421,715 2.319.572 2,l' Ten largest Customers of 1975 I!EVENl E8 International .\linerals and Chemical Corp. $ 11.802.360 S 7,699.295 S 3.307,943 S 3.104.187 Occidental Corporation 8.677,192 5,499,922 2.721.066 2,367.832 l'SS Agri. Chemicals. Inc. 5,060.798 3.496.008 1,1134.581 1.5311.066 Stauffer Chemical Co. 4,167.808 4.895,197 2.014.354 1,556,129 Niobil Chemical Company 4.145,785 2,991,129 1.6( 4 .113 1 1,546.1115 Swift and Company 4,127.1311 2.8115 M5 1,719.359 1,514.6711

   'Gardinier. Inc.                                          2.387,759       1,542,164         767.1120         631.032 General Electric                                         1,997,609        1,617.820        834,377          692.4611 Citrus % orld. inc.                                      1.339.283          984.155        531.400          411.513 Florida Cru.-hed Stone                                   1,0lul.197         930.361        518,034                  -

KR 118 AI.ES International (000

                     \linerab and  Omitted)

C hemical Corp. 448.lul8 370.203 309,116 302.606 Occidental Corporation 325.1133 269.213 251,911 238.086 l'S5 Agri. Chemicals, Inc. 191.398 172,027 171,329 164,330 Stau ffer Chemical Co. Ilui 460 262,635 266.329 268.320

    .\lobil Chemical Company                                   156,128           146.011       154,828          157,086 Swift and Company                                           154,215          147,115       149,923          153,1 %
   *G ardinier, Inc.                                             88,907           76,703         70,800           62,395 General Electric                                             70,772           68.702         71,207           66,510 Citrus %'orld, Inc.                                          47,561           44.211        44,432            40.853 Florida Crushed Stone                            .           36,512           38,366         39,966                 -
  *Formerly Cities Service Company Q ;1 t 22 0007 259

            -By Standard Industrial Classification         FLOR lDA POWER CORPORATlON s971                 1970            1969            1968              1967           1966                 1965

$ 9,606.263 $ 9,2211,598 $ 9,609,071 $ 8,874,170 $ 7,989,133 $ 6.371,532 3 5.445,716 3,099,410 3,039,063 2,915.338 2,655,433 2,886,506 2.474,509 2,259,220 2,110,176 1,976,733 1,7119,5 5 I I ,651,32 I I,(>19.657 1,561,427 1,380.587 2,! 93,2ni I 851,609 1,722,311 I,769,074 1,603,889 1,833,650 1.914.9I5 431,211 152,847 111.829 110,711 349,597 257,225 215,481 450,799 370,019 321,I80 307,720 350,614 305,939 273,525 362,569 339,801 301,441 267,831 236.123 220,122 199,197 6011,139 566,606 551,132 524.1116 423.193 303,678 227,915 323,151 289,659 292,957 2 5 2,2115 233,111 218,139 239,195 I.6113,0 6 7 I.552,786 I 275,763 910.774 7117,5 39 669,057 550.992 $20,951.590 $ 19.670,752 $19,226.603 $ 17,657,135 $ I6,509,682 $14.245,278 $ 12,707,013 1,062.216 1,013,585 1.068.714 999,120 li91,55 & 711,380 580.213 215,127 239,309 219,323 184.582 206,074 166,520 133.329 186,807 170,932 155.391 135,083 126.808 118,285 105,50!! 306.937 2il3,019 275,939 274,915 235,206 265,519 273,593 23,17I 21,592 20,702 18,966 16,3 M 11,266 9.291 26,950 21,922 17,671 16.037 18,673 15,177 14.124 2I.312 20,'09 I6,525 13,482 11,621 10,313 9,371 40,758 37,654 14.553 32,329 23,341 13,573 10,011 15,134 13,676 13,221 11,291 10,527 11,15I I1,462 90.583 69,101 16.M6 37.647 30al3 23,680 9.6116 1,912,379 1.891,I43 1.732,181 1,580.8I5 1,353,287 WHL671 1,!90.612 $ 2.238,595 $ 2,109,236 $ 2.652,552 $ 1,735,MO $ 1,727,034 $ 1,767,996 $ 1,740,544 1,923.192 1,744,131 1,6811.411 1,675.5M 1,551,344 701,170 141,590 I.312.216 I 303,350 I.316,369 1,118,755 537,571 197,408 171,763 I.681,395 1,i11,413 I.359,659 l ,196,032 1,250,823 1,528,915 I.555,908 1.339.030 I .33tl.529 1.311.807 i,752,889 2,053.941 1.600,926 1.360,1 M i 321,7711 1,369,192 1.315,929 1.344,304 1,100,873 1.00J 033 912,094 537,3611 123,081 481,965 462,607 219.553 .- _ 100,712 385,737 353.579 323,680 361,751 456,6/7 391,579 106,303 383.973 345,364 293,590 326,148 263,411 202,275 260,615 239,189 307,224 205,796 205,192 211,802 200,666 220,652 196,812 193,292 191,862 178,i13 79,157 1I.283 152,528 118,108 153,106 129,907 66,368 62,939 56,153 271,969 25I.961 251,060 259,366 212.535 242,339 250,322 119,936 152,664 119.209 200,785 232.209 I81,921 149,5 IJ l19.999 135.590 119.655 154,372 125,970 113,32 1 101,630 6I.065 48,079 51,811 53,059 28.4~4 38.367 36,M2 33,11& 30.050 31,021 37.057 31,988 36,555 34,597 30,427 23,509 26,185 20,342 11,947 $ 0007 260' i n ". .. . 23

Production Statistics YEAR ENDED DECEMBER 31, 1975 1974 1973 1972 g Energy Generated and Purcha ed-(Thou-ands of K%II): Fteam-Oil and Gas Fuel 13.484.179 11,941,924 12.206.871 11.380.100 Steam-Coal Fuel - - - - Peaking 471,302 841,734 906.694 421.233 Ilydro and Other . - - - - Purchased and Interchange Receised (net). 1,281.003 1,618,129 1,703.416 676,342 ~ Total 15.236,484 14,401,787 14.816.981 12.677.675 1.ess Company Use and twes 1.292.820 1.088.074 1.243,704 1.155,587 Total Energy Sold 13,913.664 13.313,713 13,573.277 11.522.0141 Cost of Fuel Oil S206.656,832 S172.805.793 $ 64.244,134 S 33.465.872 G a* 28,481,169 27.464,264 10.812.862 7.591.907 Coal - - - - Total 8ptem S233.138,001 S200.270.057 S 75,086,996 S 41,000.779 Fuel Cost per Million BTU Oil 172.12( 153.33p 53.695 31.62p G a3 . 143.70( 138.54p 53.76# 3 Coal . Total Sptem 168.09( 151.12/ 53.70p 3 Barrels (oil equivalent) of fuel Burned 22,421,178 21,343.377 22.572,556 20,323.802 KWil Generated per Barrel of Oil 622 599 581 591 BTU per Net Kull Generated-Steam 9,904 10,127 10,378 10.396 HTU per Net KWil Generated-Peaking . 13,442 13,849 14,487 14.624 Capacity of Plants-Net KW 3,712.000 3,625.000 2,720,000 2.540.000 Peak llourly Demand-Net KW . 3.281,000 2,989,000 ." ^62.000 2,497.000 Capacity of Interconnections with other Companies-KVA 4;910.500 4,954,500 4,189.000 3,465,000 Annual Load Factor 53.0 55.0 59.1 57.8 Operating Ratio (Operation and Maintenance) . . . 62.9 70.5 54.8 43.6 Energy Generated, Purchased, and Interchanged-Percentage: Steam-Oil and Gas Fuel . 88.50% 82.92% 82.38% 91.34% Steam-Coal Fuel . . Peaking . 3.09 5.84 6.12 3.32 liydro and Othee . Purcha cd and Interchange Received (net) 8.41 11.24 11.50 5.34 Total . . 100.00% 100.00% 100.00% 100.00% Losses (Thousands of KWil) 1,234,208 1,031,660 1,187,613 1,106 ' -

  % of Gross Input to System                ..               6.56%           5.98%           6.98%

eiD 0007 261

FLORIDA POWER CORPORATION 1971 1970 1969 1968 1967 1966 1965 11,776,417 7,098,959 6,034,799 5.201.624 4.336,467 4,980,426 4,916,105 1,612,085 2,430,884 2,212,707 2,077,632 2,088,479 356,868 - 126,686 13,846 17,275 769 - - - 29,403 18,769 7,287 20,171 35,691 46,363 145,669 252,747 429,652 337,799 127.216 549,516 262,132 10.960,887 9.855,839 8,713.202 7,628,111 6,572,333 5,922,504 5,224,600 877,722 826,817 625.772 591,211 491,769 450,656 406,537 10.083,163 9,029,022 8.087,430 7.036/100 6,080,5(>l 5.471,848 4.818,063

$ 21,509,663        $ 14,838,621    $ 11.770,085    $ 9.615,921     $ 6,420,4(>l    $ 9,144,971     $ 9,792,131 10,912.999           9,623,948       6,773,554       8 I65.772       9,469,526      9,499,815       8,492,089 4.841,292           7,341,736       6,303,740       5.798,123       5,967,458       1,063,956                   -
$ 37.266,954        $ 31.804,308    $ 21,317,379    $ 23,579,816    $ 21,857,448    $ 19,708,742    $ 18,284.220 30.16/              29.19(         28.86c           32.16t         33.63v          35.83t           30.90(

38.16f 28.18e 30.53d 32.81# 32.79t 31.97e 9 47.114 30.34p 33.74t 30.40t 31.74r 29.64/ 28.86e 29.32t 30.85t 25.'.32d 22.004 28.65t 33.864 34.444 17,685,279 16,G18.610 13,771,466 12,191,192 10,903.621 9.238,933 8,415,720 595 597 6(M) 597 589 578 584 10,445 10,140 10,401 10,493 10,631 10,905 10,801 15,398 16,255 17,640 12,358 - - - 2.292,000 2,253,000 2,159,000 1.588,000 1,522.000 1.522,400 1,154,600 0.077,000 1,920.000 1,650,000 1,497,000 1,210,000 1,199,000 968,000 3,465.000 2,657,000 2,657,000 2,482.000 2,454,000 2,443,000 2.313,000 60.2 58.6 60.3 58.0 62.0 56.4 61,6 44.1 42.1 39.8 39.0 39.0 42.5 41.5 80.07f6 72.03% 69.26% 68.23% 65.98"c al.10% 94.10r6 14.71 24.66 25.40 27.24 31.78 6.02 - 1.16 .44 .20 .01 - - -

                              .30             .21             .09            .31              .60              .88 4.06                2,57            4.93            4.43           1.93            9.28              5.02 100.0(N             100.0W6         100.00%         100.00%         100.00r6        100.004          100.00r6
                          .86,418         593,809         566,809         472,023         432,290          389,728 9 843,b. 6.57% ,             6.824           5.83%           6.30%          5.824           6.21%             6.27c6 3,,

0007 262 ,o-23 , v ,, v

Physical Statistics YEAR ENDED DECEMBER 31, 1975 1974 1973 19 . EI.ECTitlC PLANT (000 omitted) Gro - Con-truction Expenditures S 114.396 S 227.411 S 210.819 5 185.779 lietirements and Adju.tments to Property 301110 30,097 13.929 7.923 Net Addition, to Property S 93,586 S 197.314 S 226,890 $ 177,856 - Total Electric Property-End of Period $ 1,623,387 S1.529.1101 S1.332.487 $ 1.105.597 Depreciable Electric Property $ 1,145.677 $1.09 L631 S 894,167 S 785.365 Accumulated Depreciation (000 omitted) S 223.736 S 198.391 S 189,99-1 $ 1611.370

    % of Total Electric Property                   13.78%       12?;7%       14.26%          15.23%
    % of Depreciable Electric Property             19.53%       18.12'i      21.25%          21.44%

Gross Electric Plant imestment per Cu tomer(average) S 2.611 S 2,527 $ 2.350 $ Grow Electric Plant Ime>tment per Employee S 481,431 $ 439.851 S 372,619 S 358,960 Grom Electric Plant imedtment per Thousand KWil Sold $ 116 S 115 S 98 $ 96 Grom Electric Plant Imestment per Revenue Dollar S 3.22 S 3.78 S 5.22 S 5.48 Number of Regular Employ ees 3,372 3.478 3.576 5iC0 Number of Customer > per Employer 189 178 167 177 Pole Nliles of Transmiaion Lines 3.152 3,128 3,062 2,861 Circuit .\liles of Transmi* ion Lines 3.808 3,773 3,686 3,469 Pole %!ilen of Distribution Lines 17.874 17,425 16,376 15.279 Circuit 31iles of Distribution Linc> 23.634 23.078 21,719 20.336 Transmis> ion Subtations-Number 53 52 49 46 Tran-mission Substation.<-Capacity-KVA i1,777,990 10.669,865 8,987,925 6,507.300 Distribution Sub tations-Number 192 188 183 170 Di3tribution Subtations-Capacity-KVA 6,023.730 5.584,065 5.242,015 4,1167,175 Average Number of Customers per Average Pole .\ lite of Distribution Line 34.89 35.82 35.!!2 3 ,, r-t ,1 \ t Am - 0007 263

FLORIDA POWER C O R P O R A TIO N

    .d71            1970          1969            1968           1967            1966            1965
$ 160,1133      $ 80,178     $ 67,923        $ 69,017       $ 47,1178        $ 42,639        $ 61,182 10,630          1I,050         5,202           5,532          6,886           4,616          4,758

$ 130.203 $ 69,128 $ 62,721 $ 63,185 $ 40,992 $ 38,023 $ 56,721 $ 927,741 $ 777,538 $ 708,410 $ 645,689 $ 582,204 $ 541.212 $ 503,189 $ 717,718 $ 6fl5,161 $ 617,981 $ 573,362 $ 540,5ful $ 508,903 $ 434,405 5 119.319 5 137,353 $ 125!!96 $ 112,396 5 99,639 $ 87,765 $ 77,746 l b.095f 17,67'i 17.77% 17.419 17.llff 16.22% 15.15ff 20.lHY? 20.05 f 19.434 19.604 111.4 3'6 17.25?f 17.90% 1,962 $ 1,768 $ 1,712 $ 1,655 $ 1.578 ,,535

                                                                            $                $      1,41u1

$ 333.210 $ 2111,500 $ 273,729 $ 259,730 $ 231,769 $ 217,616 5 205,8117 $ 92 $ 86 $ 11 8 $ 92 $ 96 $ 99 $ 104 $ 5.26 $ 1.92 $ 4.89 $ 4.lMI $ 4.85 $ 4.l!5 $ 5,04 2,7114 2,733 2,5fMI 2,186 2,512 2,487 2,444 179 169 167 165 154 147 143 2,116 1 2,839 2,789 2,777 2,706 2.591 2,437 3,i13 3,392 3,326 3,177 3,103 2,988 2,828 14,346 13,561 12,906 12.361 11,1136 11,100 10,899 I9,I93 18,284 17,503 16.871 16,253 16.039 15,438 46 16 46 45 43 42 40 5,99 I .6. a a,903,550 5,60I,300 4,921,300 4,373,050 4,096,800 3,380,1100 162 155 150 147 142 142 136 4.186,551 3,977,091 3.727.091 3.631,641 2,710,766 2,503,361 2,303.406 3.!HI 33.24 32.76 3 2.311 31.73 31.3a 31.92 37 m .. - 0007 264 27

O FLORIDA POWER CORPORATION Notes to Statistical Report December 31, 1975

1. The Company has a contract to receive 250 megawatts of interchange from the Orlando Utilities Commission from February 13, 1974 until the Company's Crystal River Unit No. 3 is in commercial operation.

2. For additional informativ.. relating to these statistics see the Company's 1975 Annual Report to Stockholders.

0 2a . s 7u - ' " 0007.'265~

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EXHIBIT 4A FLORIDA POWER CORPORATION FINANCIAL STATEMENTS SEPTEMBER 30,1976 Neither this report nor any statement contained herein, is furnished in connection with any offering of securities or for the purpose of promoting or influencing the sale or purchase of securities. STATEMENTS OF INCOME Three Months Ended Twelve Months Ended September 30 September 30 1976 1975 1976 1975 (THOUSAND5) (THOUSAND5) OPERATING REVENUES . s153,862 s145,759 s540,068 S488,505 OPERATING EXPENSES. Operation-Fuel. s 75,822 s 65.873 s239,829 s232,022 Purchased power . . . 4.078 7,044 25,997 20,278 Other, . 9,280 10,271 41,134 38,761 s 89,180 s 83,188 s306,960 s291,061 O Maintenance Depreciation (Note 1).. .

                                                                                              .      5,168 10,476 3,948 8 215 22,824 39,128 14,937 32.405 Taxe s other than income taxed                              . . . .        . . . .          8,91 0         8,826       33,339         29201 income taxes-Payable currently-Federal (Note 2)                                                            695         7,247       10,611          8,196 Payable currently-State .                                                                     566           902         2,405          1,632 Deferred to subsequent years-Federal .                                                     7,512          5,408       26,062         21,041 Deferred to subsequent years-State.,          . . . .                                         832            595        2,861         2,321 Deferred income taxes-credits ,                                                               843       (1,984)       (4,660)        (3,556)

Investment tax credit, net of amortization., . . . . 4,216 1,590 9.115 5,506 s128,398 s117,935 s448,645 s402.744 OPERATING INCOME . . . . . s 25,464 s 27.824 s 91,423 s 85,761 OTHER INCOME AND DEDUCTIONS: Allowance for funds used during construction s 5,312 s 7,192 s 20,838 s 34,891 Gain on reacquired bonds. 466 1,679 490 3,568 Miscellaneous other income and (deductions).. (1,388) (1,309) (1,364) 242 s 4,390 s 7,562 s 19,964 s 38,701 INTEREST CHARGES: Interest on long-term debt. . . . . . . . . . . . . s 11,241 s 1 0,831 s 44,887 s 43,993 Other interest expense . .. ., . . . . 1,580 1,660 5,764 10.278 s 12,821 s 12,491 s 50,651 s 54,271 NET INCO".tE. s 17,033 s 22,895 s 60,736 s 70,191 IVIDENDS ON PREFERRED STOCK . 3,409 3,429 13.695 13,772 WET INCOME AFTER DIVIDENDS ON PREFERRED S s 13,624 s 19,466 s 47,041 s 56,419 AVERAGE SHARES OF COMMON STOCK OUTSTANDING 14,207,415 13,061,737 14.187,841 . 12,920,903 EARNINGS PER SHARE.. .. .. s.96 s1.49.. s3.32 ..s4.37 r 3 d ' The accompanying notes are an integral part of these statements. 007'267

FLORIDA POWER CORPORATION BALANCE SHEETS SEPTEMBER 30,1976 AND 1975 ASSETS 1976 9 1975 (T H OUS A ND 5) ELECTRIC PLANT: In service and held for future use.. s1,231,524 s1,137.570 Less-Accumulated depreciation , 253,232 218,419 s 978.292 s 919.151 Construction work in progress. 449.386 426.971 Nuclear fuel assemblies.. 32,709 28,163 s1.460,387 s1,374,285 OTHER PROPERTY AND INVESTMENTS, at cost s 5,892 s 5,245 CURRENT ASSETS: Cash, s 12,596 s 13.093 Accounts receivable, less reserve of $1,047,000 in 1976 and s875,000 in 1975. 36,027 40,412 Materials and supplies, at average cost-Fuel, . . 29,897 30,631 Plant materials and operating supplies.. 29,389 32,101 Other. 3.289 2.870 s 111,198 s 119,107 DEFERRED CHARGES . s 9,521 s 7,844 s1,586,998 s1.506,481 CAPITAllZATION AND LIABILITIES CAPITAllZATION: Common stock s 35,540 s 35,435 Other paid-in capital . 200,444 199,386 Retained earnings 2 04,051 187,005 s 440,CD5 s 421,826 Cumulative preferred stock 175.350 176,920 Long-term debt, less amount to be reacquired of s2,952.000 in 1976. . . . . . . . < . . . . . . . . . . . . . . 656,384 641.392 s1,271,769 s1.240.138 CURRENT LIABILITIES: - Accounts payable s 18,080 s 25,023 Accrued taxes 22,001 23,663 Bank loans and commercial paper . 79,450 61.490 Other, 36.853 30,791

                                                                                  $ 156,384               s 140,967 ACCUMULATED DEFERRED TAXES, ETC,                                                 s 158.845               s 125,376
                                                                                  $1,586.998              s1,506.481 The accompanying notes are an integral part of these statements.
        < v u_          -

U007 268

FLORIDA POWER CORPORATION TATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION FOR THE TWELVE MONTHS ENDED SEPTEMBER 30,1976 AND 1975 1976 1975 (T HOW$ A ND $) FUNDS DERIVED FROM OPERATIONS-Net income after dividends on preferred stock . s 47,041 s 56,419 Less-Dividends on common stock 29,797 25,105 Earnings retained in the business. s 17.244 s 31,314 ltems included in net income not requiring cash outlay-Deprecia tion . 39,128 32,405 Deferred income taxes and investment tax credit. 33,067 27,117 Allowance for funds used during construction (Note 3). (20,838) (34.891) s 68.601 s 55.945 DECREASE IN NET CURRENT ASSETS (exclusive of short-term borrowing), s 2,41 2 s 18,669 FUNDS FRCM FINANCING AND OTHER SOURCES-Joint participation agreement in nuclear unit . s 4,880 s 39,589 Long-term borrowing., 20.086 3,857 Common stock 965 27,625 increase (Decrease) in short-term borrowing . 17,960 (37,448) Other sources (net) , (1,318) 2,71 0 s 42,573 s 36,333 TOTAL, s113,586 s110,947 Allowance for funds used during construction 20,838 34,891 9 FUNDS USED FOR CONSTRUCTION. $134,424 s145,838 The accompanying notes are an integral part of these statements. 0007 269

FLORIDA POWER CORPORATION OPERATING REVENUES, MEGAWATT-HOUR SALES AND BITJJNG DEGREE DAYS Three Months Ended Percent Twelve Months Ended Percent September 30 Change September 30 Change 1976 1975 1976 1975 OPERATING REVENUES: (THousANos) Residential s 70.017 s 67,477 3.8% s236.181 s214.098 10.3% Commercial . 39,546 37,541 5.3 140,686 126.969 10.8 Industrial 18.711 17,501 6.9 73,728 68,272 8.0 Other. 25,588 23,240 10.1 89.473 79,166 13.0 Total $153,862 s145.759 5.6% $540.068 S488,505 10.6% MEGAWATT. HOUR SALES: Residential . .1,714,673 1.658.076 3.4% 5.660,180 5.377.257 5.3% Commercial . .. 945,490 902.901 4.7 3.287.370 3,145.479 4.5 Industrial . . . . 676,095 602,024 12.3 2.635,774 2. 448,250 7.7 Other . 877,670 820.409 7.0 3.039.662 2,813.629 8.0 Total 4.213.928 3.983.410 5.8% 14.622.986 13,784.615 6.1 % BILLING DEGREE DAYS: Cooling . 2.251 2.321 3.767 4.112 Heating . 0 0 451 234 Notes to Financial Statements:

1) Depreciation expense reflects an increase of approximately ii.3td,000 for the three months and S3.900,000 for the twelve months ended September 30, 1976 due to higher depreciation rates put into effect January 1, 1976.

2) Federal income tax expense for the three months and twelve months ended September 30,1975 and the twelve months ended September 30, 1976 have been reduced by $600,000, s1.800.000 and $1,147.000 respectively, representing an adjustment of income tax provided in prior periods.

3) in the accompanying Statements of Sources of Funds Used For Construction, the debt and referred equity com-ponents ($22.340.0Q0) of the allowance for funds used during construction for 1975 have been reclassified to '

a deduction from f unds derived from operations to conform with the 1976 presentation. 0007 270 mM

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