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1991 A SUCCESSFUL BUSINESS YEAR FOR CP&L

 1991 A SUCCESSFUL BUSINESS YEAR FOR CP&L
 RALEIGH, N.C., May 13 /PRNewswire/ -- Carolina Power & Light


(NYSE: CPL) saw its service area experience economic growth and its electricity sales increase in 1991 despite a sluggish national economy, and the company continued finding ways to reduce costs and improve efficiency. That's the message CP&L Chairman/President Sherwood H. Smith Jr. shared with company stockholders at its annual meeting May 13 in Raleigh.
 "Throughout the past year, we were able to maintain and improve our strong financial position and increase value for our shareholders," Smith said. "We are continuing to seek to improve our service to customers, contain our costs, strengthen the economy and the quality of life in the communities we serve, and provide a growing return for shareholders. As we look to the future and analyze challenges, we realize how important it is to maintain flexibility in our planning and in our ability to respond to changing conditions."
 Smith noted that the company's energy sales increased three percent in 1991, operating revenues rose 2.6 percent, and the company's annual dividend rate on common stock increased in December last year to $3.16.
 "Ours is a very complex business," he told shareholders. "Often we must carefully weigh and balance many factors."
 Smith said that maintaining rate stability for customers is one of CP&L's primary goals. Operating generating plants at high production levels helps CP&L reach this goal.
 "In 1991, our coal-fired generating system achieved an equivalent availability factor of about 90 percent for the year and 87 percent for the five years ending December 31," Smith said. " ... This achievement compares very favorably to the five-year industry average of approximately 81 percent.
 "Our four nuclear units produced nearly half of the electricity generated by CP&L last year. These four nuclear units achieved a capacity factor, or measure of productivity and reliability, of approximately 70 percent in 1991, compared to a five-year national average of about 63 percent," he said.
 As CP&L's service area continues to grow, Smith said, the company plans to meet customer demand for electricity in ways that will postpone as long as possible the addition of new baseload generating plants. CP&L's plan calls for customer programs to carefully manage demand, the installation of a combination of small combustion turbines, and some power purchases from other utilities.
 "Customer programs such as the promotion of high-efficiency heat pumps and the use of SafeShine outdoor lighting help us toward a more efficient use of our total system," Smith told shareholders. "By increasing customer usage in the off-peak hours when we have energy to sell, these programs will help us hold down our total cost of providing service to customers."
 Smith reported on the Adopt State Parks Program, a partnership between CP&L and the State of North Carolina to help preserve the state parks. He said that the company's efforts to create a "Volunteers Improving Parks" organization have been highly successful. For this Adopt State Parks effort, CP&L was selected a statewide winner in North Carolina's 1991 Take Pride in America awards. And recently, the effort was chosen as a finalist in the national Take Pride in America awards competition.
 Smith said the company is in the process of completing an arrangement to provide the South Carolina state parks program with significant support.
 Concluding, Smith said, "I assure you that we will continue aggressively to seek ways to achieve success and to balance all that we do for maximum performance. We will strive toward more efficient operations, greater customer satisfaction and increased profitability."
 CP&L serves almost one million customers in the Carolinas. Approximately 45 percent of the company's shareholders live in the two Carolinas.
 -0- 5/13/92
 /CONTACT: Kyle Hampton or Wade Pridgen, CP&L, 919-546-6189 (24-Hour Media Line)/
 (CPL) CO: Carolina Power & Light ST: North Carolina, South Carolina IN: UTI SU: ECO


JZ -- CH006 -- 9673 05/13/92 12:22 EDT
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Publication:PR Newswire
Date:May 13, 1992
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