Florida Power files need petition to add third generating unit in Polk County

ST. PETERSBURG, Fla., Sept. 4, 2002 — Florida Power today filed a petition with the Florida Public Service Commission (FPSC) to demonstrate the company’s need to add a third unit at its Hines Energy Complex in Polk County. It will initiate need-determination proceedings at the FPSC in accordance with the Florida Electrical Power Plant Siting Act.

Florida Power plans to build a combined-cycle power block (approximately 500 megawatts) at the Hines Energy Complex to begin commercial operation in late 2005. The new unit, fueled by low emission natural gas, would give Florida Power about 1,500 MW of generation capacity at its Hines site.

“Part of Florida Power’s Commitment to Excellence improvement plan is to ensure adequate generation for our customers,” said Bill Habermeyer, president and CEO of Florida Power. “The addition of Hines 3 underscores our commitment to the PSC of attaining a 20 percent generation reserve. Most importantly, the project is being done as efficiently and reliably as possible.”

The first natural gas-fueled combined-cycle plant at the Hines site began commercial operation in 1999. Construction on the second phase is under way and scheduled for completion in 2003. Combined-cycle technology combines the use of state-of-the-art combustion turbines working in tandem with equipment that recovers exhaust heat to produce more electricity, making the units highly efficient.

Florida Power, a subsidiary of Progress Energy, provides electricity and related services to more than 1.4 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg, Clearwater, as well as the Central Florida area surrounding Orlando. For more information about Florida Power, visit the company’s Web site at: http://www.fpc.com.

Source: Florida Power

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