EX-99 2 exhibit99.htm EXHIBIT 99 Exhibit 99

Exhibit 99

FPL Group, Inc.
Corporate Communications Dept.
Media Line: (305) 552-3888
May 2, 2006

FOR IMMEDIATE RELEASE

 

FPL Group announces first quarter earnings

  • FPL Energy posts outstanding quarter with excellent results from existing assets and new project additions

  • Florida Power & Light results negatively impacted due to mild weather

  • FPL Group reaffirms 2006 and 2007 adjusted earnings expectations

 

JUNO BEACH, Fla. (May 2, 2006) - FPL Group, Inc. (NYSE: FPL) today reported 2006 first quarter net income on a GAAP basis of $248 million, or $0.63 per share, compared with $137 million, or $0.36 per share, in the first quarter of 2005. FPL Group's net income for the first quarter of 2006 included a net unrealized after-tax gain of $23 million associated with the mark-to-market effect of non-qualifying hedges and $3 million of after-tax merger related costs. The results for last year's first quarter included a net unrealized after-tax loss of $31 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges and merger- related costs, FPL Group's earnings would have been $228 million or $0.58 per share for the first quarter of 2006, compared with $168 million, or $0.44 per share, in the first quarter of 2005.

FPL Group's management uses adjusted earnings internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and for the company's employee incentive compensation plan. FPL Group also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. FPL Group management believes that adjusted earnings provide a more meaningful representation of FPL Group's fundamental earnings power.

"FPL Group is off to an excellent start in 2006 driven by an outstanding performance at FPL Energy that more than offset rather tepid results from Florida Power & Light," said Lew Hay, chairman, president and chief executive officer of FPL Group. "FPL Energy had another excellent performance across virtually every segment of its business. The contribution from existing assets and new project additions, coupled with outstanding operational performance, benefited quarterly results. For the first time since its formation, FPL Energy's contributions on an adjusted earnings basis exceeded those of FPL. While we do not expect FPL Energy to outperform FPL every quarter in terms of earnings contribution, it does help illustrate the strength of FPL Energy's business model.

"While Florida Power & Light continues to enjoy strong customer growth, its results were dampened somewhat by mild weather conditions. Although earnings were up quarter over quarter, we had hoped to do better."

Florida Power & Light Company
Florida Power & Light, FPL Group's principal subsidiary, reported first quarter net income of $122 million or $0.31 per share, compared to $111 million or $0.30 per share for the prior-year quarter.

In the last 12 months, the average number of FPL accounts increased by 92,000 or 2.2 percent, which is modestly above the average growth experienced since 2000, but slightly below the growth over the last couple of years. Retail sales of electricity grew 1.7 percent during the first quarter.

Operations and maintenance (O&M) expense was up compared to the prior year quarter due primarily to cost pressures associated with increased staffing at FPL's nuclear plants to meet enhanced regulatory requirements and to ensure long-term reliability and higher electric distribution costs driven by increases in fleet vehicle costs and additional restoration expenses.

Depreciation expense decreased in the first quarter compared to the prior year quarter. The depreciation expense was down primarily due to the extension of the useful lives of the generation fleet and the elimination of the decommissioning accrual, both of which were approved by the Florida Public Service Commission (PSC) and implemented under the August 2005 rate stipulation and settlement agreement.

"Mild weather in the first quarter of this year reduced FPL's revenues. The combination of heating and cooling degree days, a common metric used for determining weather impacts on energy usage, was down more than 14 percent in the quarter compared to normal," said Hay. "Although revenues were down due to mild weather, the fundamental attractiveness of the Florida economy coupled with continued population growth should lead to continued strong customer growth at FPL."

In January, FPL filed a petition with the PSC seeking recovery of approximately $816 million of prudently incurred restoration costs relating to the 2005 storm season. In that petition, FPL proposed combining these amounts with the remaining unrecovered deficit from 2004 as well as rebuilding the storm reserve to approximately $650 million. Two alternatives were proposed: the use of securitization was the primary recommendation and a surcharge was the alternate.

Since the petition was filed FPL has refined its estimates of final costs based on new information and has reduced the total estimated unrecovered costs by approximately $46 million.

In April, the PSC held three days of hearings on the prudency of the 2005 costs as well as the considerations that should lead to choosing securitization or surcharge and the level of the reserve that should be targeted. FPL continues to believe its actions were prudent and that its accounting approach concerning storm costs is appropriate. The PSC is due to vote on all outstanding issues in this matter on May 15.

Also during the first quarter, FPL concluded that its West County Energy Center proposal is the best and most cost-effective option to provide additional electricity for FPL customers beginning in 2009. Under FPL's proposal, the new plant will consist of two natural gas-fired units of approximately 1,200 megawatts each. FPL has already filed for a determination of need petition with the PSC. Assuming all of the necessary approvals are received in a timely manner, the first generating unit of the West County Energy Center is expected to be completed by 2009 and the second in 2010.

FPL also notified the Nuclear Regulatory Commission of its intention to submit a license application in 2009 for a new nuclear plant in Florida. A decision to build is still several years away and would be evaluated on several factors, including regulatory climate, financial market conditions and competing fuel technologies.

FPL Energy

FPL Energy, the competitive energy subsidiary of FPL Group, reported first quarter net income on a GAAP basis of $151 million or $0.38 per share, compared to $37 million or $0.10 per share in the prior year quarter. FPL Energy's net income for the first quarter of 2006 included a net unrealized after-tax gain of $23 million associated with the mark-to-market effect of non-qualifying hedges. The results for last year's first quarter included a net unrealized after-tax loss of $31 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges, net income for FPL Energy would have been $128 million or $0.32 per share compared to $68 million or $0.18 per share in 2005.

FPL Energy's growth in adjusted earnings in the first quarter is due primarily to the strong performance of its existing assets, the addition of new projects and strong operational performance across the portfolio coupled with favorable market conditions and weather resources that were close to historical averages.

"FPL Energy's performance during the first quarter was outstanding, and its excellent overall results reflect the strength of its growing, diversified portfolio, improved market conditions and a continuing focus on operational excellence," said Hay. "During the first quarter, we also saw a return to a more normal wind resource that benefited FPL Energy's existing wind assets and new project additions."

FPL Energy continued to make good progress during the first quarter in selling forward the output from its power plants for 2007. As of March 31, 2006, FPL Energy's overall 2006 contract coverage has changed little since year end 2005, with approximately 87 percent of the capacity of its current portfolio under contract. Approximately 90 percent of FPL Energy's 2006 expected gross margin for the wholesale generation fleet is protected against fuel and power market volatility. For 2007, contract coverage stands at approximately 72 percent, with more than 80 percent of 2007 expected gross margin for its wholesale generation fleet protected against fuel and power market volatility.

During the first quarter, an FPL Energy subsidiary completed the purchase of a 70 percent interest in the Duane Arnold Energy Center, a nuclear power plant located northwest of Cedar Rapids, Iowa, from Interstate Power and Light. All of the power from FPL Energy's share of the Duane Arnold Energy Center is being sold under a long-term contract to Interstate Power and Light.

FPL Energy's 2006 wind program continues to make excellent progress. Thus far in 2006, FPL Energy has about 760 megawatts of new wind projects that have either been completed or are expected to reach commercial operation by the end of the year. With the two-year extension of the federal wind production tax credit, a strong pipeline of wind projects and corresponding equipment contracts in place, FPL Energy expects to add 1,250 to 1,500 megawatts over the course of the 2006/2007 period.

Corporate and Other

Corporate and Other negatively impacted net income by $25 million or $0.06 per share, primarily driven by interest expense, corporate interest income, corporate expenses and merger related expenses.

Outlook

"Although it is still early in the year, FPL Energy is off to a good start. The outstanding performance at FPL Energy in the first quarter puts us ahead of where we had expected to be at this point in the year," said Hay, "but this is partially offset by the first quarter weakness at Florida Power & Light, and the general rise in interest rates, which is likely to pressure the Corporate & Other segment over the course of the year.

"With a solid first quarter behind us and numerous growth prospects for the future, we remain comfortable with our full-year 2006 and 2007 adjusted earnings expectations for FPL Group."

For 2006, FPL Group expects adjusted earnings of $2.80 to $2.90 per share assuming normal weather for the balance of the year, normal operating conditions, continued customer growth at FPL, and a satisfactory outcome to FPL's storm cost recovery proceedings and excluding the cumulative effect of adopting new accounting standards, the mark-to-market effect of non-qualifying hedges, and merger-related expenses, none of which can be determined at this time.

Similarly, for 2007 FPL Group expects adjusted earnings to be in the range of $3.15 to $3.35 per share.

Constellation Merger

"In addition to executing our business plan, we have also been focused on our proposed merger with Constellation Energy. We remain very positive on the strategic rationale for the merger, which holds the prospect of enabling us to build the industry-leading competitive energy business while simultaneously offering modest incremental benefits to the customers of the two regulated utilities," said Hay. "At the same time, however, we cannot be blind to some of the negative political developments in Maryland which, under some possible scenarios, could inhibit or prevent us from realizing the potential value of the deal. We continue to believe that FPL Group is a strong independent company with excellent stand-alone growth prospects and we will not allow the potential value of the deal to be compromised simply in order to meet politically imposed hurdles. We remain committed to protecting and enhancing FPL Group shareholder value."

 

 

 

Non-solicitation

This communication is not a solicitation of a proxy from any security holder of FPL Group or Constellation Energy. Constellation Energy intends to file with the Securities and Exchange Commission a registration statement that will include a joint proxy statement/prospectus of Constellation Energy and FPL Group and other relevant documents to be mailed to security holders in connection with the proposed transaction. WE URGE INVESTORS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FPL GROUP, CONSTELLATION ENERGY, AND THE PROPOSED TRANSACTION.

A definitive proxy statement will be sent to security holders of FPL Group and Constellation Energy seeking approval of the proposed transaction. Investors and security holders will be able to obtain these materials (when they are available) and other documents filed with the SEC free of charge at the SEC's website, www.sec.gov. In addition, a copy of the joint proxy statement/prospectus (when it becomes available) may be obtained free of charge from Constellation Energy, Shareholder Services, 750 E. Pratt Street, Baltimore, MD 21201, or from FPL Group, Shareholder Services, P.O. Box 14000, 700 Universe Blvd., Juno Beach, Florida 33408-0420.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

FPL Group, Constellation Energy, and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding FPL Group's directors and executive officers is available in its Form 10-K/A filed with the SEC by FPL Group on April 28, 2006, and information regarding Constellation Energy's directors and executive officers is available in its Form 10-K/A filed with the SEC by Constellation Energy on May 1, 2006. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.

 

As previously announced, FPL Group's first quarter earnings conference call is scheduled for 9 a.m. ET on Tuesday, May 2, 2006. The webcast is available on FPL Group's website by accessing the following link, http://www.FPLGroup.com/investor/contents/investor_index.shtml. The slides accompanying the presentation may be downloaded at www.FPLGroup.com beginning at 7:30 a.m. ET today. For persons unable to listen to the live webcast, a replay will be available for 90 days by accessing the same link as listed above.

This press release should be read in conjunction with the attached unaudited financial information.

 

Profile

FPL Group, with annual revenues of more than $11 billion, is nationally known as a high-quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4.4 million customer accounts in Florida. FPL Energy, LLC, FPL Group's competitive energy subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPLGroup.com, www.FPL.com and www.FPLEnergy.com.


Cautionary Statements And Risk Factors That May Affect Future Results

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby providing cautionary statements identifying important factors that could cause FPL Group's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and FPL in this presentation, on their respective websites, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.

Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The following are some important factors that could have a significant impact on FPL Group's and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:

  • FPL Group and FPL are subject to complex laws and regulation, and to changes in laws or regulations, including the Public Utility Regulatory Policies Act of 1978, as amended (PURPA), the Public Utility Holding Company Act, as amended (Holding Company Act), the Federal Power Act, the Atomic Energy Act of 1954, as amended, the Energy Policy Act of 2005 and certain sections of the Florida statutes relating to public utilities, changing governmental policies and regulatory actions, including those of the Federal Energy Regulatory Commission (FERC), the Florida Public Service Commission (FPSC) and the legislatures and utility commissions of other states in which FPL Group has operations, and the U.S. Nuclear Regulatory Commission (NRC), with respect to, among other things, allowed rates of return, industry and rate structure, operation of nuclear power facilities, operation and construction of plant facilities, operation and construction of transmission facilities, acquisition, disposal, depreciation and amortization of assets and facilities, recovery of fuel and purchased power costs, decommissioning costs, return on common equity (ROE) and equity ratio limits, and present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs). The FPSC has the authority to disallow recovery by FPL of any and all costs that it considers excessive or imprudently incurred.

  • The regulatory process generally restricts FPL's ability to grow earnings and does not provide any assurance as to achievement of earnings levels.

  • FPL Group and FPL are subject to extensive federal, state and local environmental statutes, rules and regulations, as well as the effect of changes in or additions to applicable statutes, rules and regulations, relating to air quality, water quality, waste management, wildlife mortality, natural resources and health and safety that could, among other things, restrict or limit the output of certain facilities or the use of certain fuels required for the production of electricity and/or require additional pollution control equipment and otherwise increase costs. There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future.

  • FPL Group and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives regarding deregulation or restructuring, regulation or restructuring of the energy industry, including deregulation of the production and sale of electricity. FPL Group and its subsidiaries will need to adapt to these changes and may face increasing competitive pressure.

  • FPL Group's and FPL's results of operations could be affected by FPL's ability to renegotiate franchise agreements with municipalities and counties in Florida.

  • The operation of power generation facilities involves many risks, including start up risks, breakdown or failure of equipment, transmission lines or pipelines, use of new technology, the dependence on a specific fuel source, including the supply and transportation of fuel, or the impact of unusual or adverse weather conditions (including natural disasters such as hurricanes), as well as the risk of performance below expected or contracted levels of output or efficiency. This could result in lost revenues and/or increased expenses, including the requirement to purchase power in the market at potentially higher prices to meet its contractual obligations. Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses, including the cost of replacement power. In addition to these risks, FPL Group's and FPL's nuclear units face certain risks that are unique to the nuclear industry including the ability to store and/or dispose of spent nuclear fuel, the potential payment of significant retrospective insurance premiums, as well as additional regulatory actions up to and including shutdown of the units stemming from public safety concerns, whether at FPL Group's and FPL's plants, or at the plants of other nuclear operators. Breakdown or failure of an FPL Energy, LLC (FPL Energy) operating facility may prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of the agreement or incurring a liability for liquidated damages.

  • FPL Group's and FPL's ability to successfully and timely complete their power generation facilities currently under construction, those projects yet to begin construction or capital improvements to existing facilities within established budgets is contingent upon many variables and subject to substantial risks. Should any such efforts be unsuccessful, FPL Group and FPL could be subject to additional costs, termination payments under committed contracts, and/or the write-off of their investment in the project or improvement.

  • FPL Group and FPL use derivative instruments, such as swaps, options, futures and forwards, to manage their commodity and financial market risks, and, to a lesser extent, engage in limited trading activities. FPL Group could recognize financial losses as a result of volatility in the market values of these contracts, or if a counterparty fails to perform. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management's judgment or use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts. In addition, FPL's use of such instruments could be subject to prudency challenges and if found imprudent, cost recovery could be disallowed by the FPSC.

  • There are other risks associated with FPL Group's competitive energy businesses, particularly FPL Energy. In addition to risks discussed elsewhere, risk factors specifically affecting FPL Energy's success in competitive wholesale markets include the ability to efficiently develop and operate generating assets, the successful and timely completion of project restructuring activities, maintenance of the qualifying facility status of certain projects, the price and supply of fuel (including transportation), transmission constraints, competition from new sources of generation, excess generation capacity and demand for power. There can be significant volatility in market prices for fuel and electricity, and there are other financial, counterparty and market risks that are beyond the control of FPL Energy. FPL Energy's inability or failure to effectively hedge its assets or positions against changes in commodity prices, interest rates, counterparty credit risk or other risk measures could significantly impair FPL Group's future financial results. In keeping with industry trends, a portion of FPL Energy's power generation facilities operate wholly or partially without long-term power purchase agreements. As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may affect the volatility of FPL Group's financial results. In addition, FPL Energy's business depends upon transmission facilities owned and operated by others; if transmission is disrupted or capacity is inadequate or unavailable, FPL Energy's ability to sell and deliver its wholesale power may be limited.

  • FPL Group is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry, in general, as well as the passage of the Energy Policy Act of 2005. In addition, FPL Group may be unable to identify attractive acquisition opportunities at favorable prices and to successfully and timely complete and integrate them.

  • FPL Group and FPL rely on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows. The inability of FPL Group, FPL Group Capital Inc (FPL Group Capital) and FPL to maintain their current credit ratings could affect their ability to raise capital on favorable terms, particularly during times of uncertainty in the capital markets, which, in turn, could impact FPL Group's and FPL's ability to grow their businesses and would likely increase interest costs.

  • FPL Group's and FPL's results of operations are affected by the growth in customer accounts in FPL's service area. Customer growth can be affected by population growth as well as economic factors in Florida, including job and income growth, housing starts and new home prices. Customer growth directly influences the demand for electricity and the need for additional power generation and power delivery facilities at FPL.

  • FPL Group's and FPL's results of operations are affected by changes in the weather. Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities, and can affect the production of electricity at wind and hydro-powered facilities.

  • FPL Group's and FPL's results of operations can be affected by the impact of severe weather which can be destructive, causing outages and property damage, may affect fuel supply and could require additional costs to be incurred. At FPL, recovery of these costs is subject to FPSC approval.

  • FPL Group and FPL are subject to costs and other effects of legal and administrative proceedings, settlements, investigations and claims, as well as the effect of new, or changes in, tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements.

  • FPL Group and FPL are subject to direct and indirect effects of terrorist threats and activities. Generation and transmission facilities, in general, have been identified as potential targets. The effects of terrorist threats and activities include, among other things, terrorist actions or responses to such actions or threats, the inability to generate, purchase or transmit power, the risk of a significant slowdown in growth or a decline in the U.S. economy, delay in economic recovery in the United States, and the increased cost and adequacy of security and insurance.

  • FPL Group's and FPL's ability to obtain insurance, and the cost of and coverage provided by such insurance, could be affected by national, state or local events as well as company-specific events.

  • FPL Group and FPL are subject to employee workforce factors, including loss or retirement of key executives, availability of qualified personnel, collective bargaining agreements with union employees and work stoppage.

  • FPL Group's ability to successfully complete and integrate the proposed merger between FPL Group and Constellation Energy is subject to certain risks and uncertainties including; the ability to obtain governmental approvals of the transaction on the proposed terms and schedule; the failure of FPL Group or Constellation Energy shareholders to approve the transaction; the risk that anticipated synergies will not be achieved or will take longer to achieve than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees, suppliers or governmental entities; unexpected transaction costs or liabilities; economic conditions; and other specific factors discussed in documents filed with the SEC by both FPL Group and Constellation Energy. These risks, as well as other risks associated with the merger, will be more fully discussed in the joint proxy statement/prospectus that will be included in the Registration Statement on Form S-4 that Constellation Energy will file with the SEC in connection with the proposed merger.

The issues and associated risks and uncertainties described above are not the only ones FPL Group and FPL may face. Additional issues may arise or become material as the energy industry evolves. The risks and uncertainties associated with these additional issues could impair FPL Group's and FPL's businesses and financial results in the future.

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Three Months Ended March 31, 2006

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

  

$ 2,584

 

$ 952

 

$ 48

 

$ 3,584

                   

Operating Expenses

                

Fuel, purchased power and interchange

  

1,538

 

487

 

28

 

2,053

Other operations and maintenance

  

330

 

133

 

11

 

474

Merger-related

  

-

 

-

 

5

 

5

Amortization of storm reserve deficiency

  

32

 

-

 

-

 

32

Depreciation and amortization

  

195

 

87

 

4

 

286

Taxes other than income taxes

  

243

 

21

 

2

 

266

 

Total operating expenses

  

2,338

 

728

 

50

 

3,116

                   

Operating Income (Loss)

  

246

 

224

 

(2)

  

468

                 

Other Income (Deductions)

                

Interest charges

  

(68)

  

(63)

  

(38)

  

(169)

Equity in earnings of equity method investees

  

-

 

11

 

-

 

11

Gains (losses) on disposal of equity method investees and leveraged leases - net

-

 

-

 

-

 

-

Allowance for equity funds used during construction

  

4

 

-

 

-

 

4

Interest Income

  

1

 

5

 

2

 

8

Other - net

  

(2)

  

4

 

(1)

  

1

 

Total other income (deductions) - net

  

(65)

  

(43)

  

(37)

  

(145)

                   

Income (Loss) Before Income Tax Expense (Benefit)

181

181

(39)

323

                   

Income Tax Expense (Benefit)

  

59

 

30

 

(14)

  

75

                   

Net Income (Loss)

  

$ 122

 

$ 151

 

$ (25)

  

$ 248

                   
                   

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

                
                   

Net Income (Loss)

  

$ 122

 

$ 151

 

$ (25)

  

$ 248

                   

Adjustments, net of income taxes:

                

Merger-related costs

  

-

 

-

 

3

 

3

Net unrealized mark-to-market (gains) losses associated

                
 

with non-qualifying hedges

  

-

 

(23)

  

-

 

(23)

                   

Adjusted Earnings (Loss)

  

$ 122

 

$ 128

 

$ (22)

  

$ 228

                   

Earnings (Loss) Per Share (assuming dilution)

  

$ 0.31

 

$ 0.38

 

$ (0.06)

  

$ 0.63

Adjusted Earnings (Loss) Per Share

  

$ 0.31

 

$ 0.32

 

$ (0.05)

  

$ 0.58

Weighted-average shares outstanding (assuming dilution)

              

393

                   
                   

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
                   
                   

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Three Months Ended March 31, 2005

  

Florida Power
& Light

FPL
Energy

  

Corporate &
Other

FPL Group,
Inc.

                   

Operating Revenues

  

$ 2,041

 

$ 372

 

$ 24

 

$ 2,437

                   

Operating Expenses

                

Fuel, purchased power and interchange

  

1,077

 

154

 

7

 

1,238

Other operations and maintenance

  

310

 

94

 

11

 

415

Amortization of storm reserve deficiency

  

19

 

-

 

-

 

19

Depreciation and amortization

  

230

 

72

 

5

 

307

Taxes other than income taxes

  

204

 

19

 

1

 

224

 

Total operating expenses

  

1,840

 

339

 

24

 

2,203

                   

Operating Income (Loss)

  

201

 

33

 

-

 

234

Other Income (Deductions)

                

Interest charges

  

(49)

  

(52)

  

(37)

  

(138)

Equity in earnings of equity method investees

  

-

 

19

 

-

 

19

Gains (losses) on disposal of equity method investees and leveraged leases - net

-

 

8

 

7

 

15

Allowance for equity funds used during construction

  

10

 

-

 

-

 

10

Interest Income

  

2

 

6

 

7

 

15

Other - net

  

-

 

7

 

(3)

  

4

 

Total other income (deductions) - net

  

(37)

  

(12)

  

(26)

  

(75)

                   

Income (Loss) Before Income Tax Expense (Benefit)

  

164

 

21

 

(26)

  

159

                   

Income Tax Expense (Benefit)

  

53

 

(16)

  

(15)

  

22

                   

Net Income (Loss)

  

$ 111

 

$ 37

 

$ (11)

  

$ 137

                   
                   

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

                
                   

Net Income (Loss)

  

$ 111

 

$ 37

 

$ (11)

  

$ 137

                   

Adjustments, net of income taxes:

                

Net unrealized mark-to-market (gains) losses associated

                
 

with non-qualifying hedges

  

-

 

31

 

-

 

31

                   

Adjusted Earnings (Loss)

  

$ 111

 

$ 68

 

$ (11)

  

$ 168

                   

Earnings (Loss) Per Share (assuming dilution)

  

$ 0.30

 

$ 0.10

 

$ (0.04)

  

$ 0.36

Adjusted Earnings (Loss) Per Share

  

$ 0.30

 

$ 0.18

 

$ (0.04)

  

$ 0.44

Weighted-average shares outstanding (assuming dilution)

              

377

                   
                   

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Preliminary Condensed Consolidated Balance Sheets
(millions)
(unaudited)

                   

March 31, 2006

  

Florida Power
& Light

FPL
Energy

  

Corporate &
Other

FPL Group,
Inc.

                 

Property, Plant and Equipment

                

Electric utility plant in service and other property

$ 24,762

 

$ 9,319

 

$ 337

 

$ 34,418

Less accumulated depreciation and amortization

  

(9,664)

  

(1,358)

  

(111)

  

(11,133)

 

Total property, plant and equipment - net

  

15,098

 

7,961

 

226

 

23,285

                   

Current Assets

                

Cash and cash equivalents

  

51

 

56

 

41

 

148

Other

  

2,506

 

1,160

 

208

 

3,874

 

Total current assets

  

2,557

 

1,216

 

249

 

4,022

                   

Other Assets

  

4,178

 

1,135

 

216

 

5,529

                   

Total Assets

  

$ 21,833

 

$ 10,312

 

$ 691

 

$ 32,836

                   

Capitalization

                

Common stock

  

$ 1,373

 

$ -

 

$ (1,369)

  

$ 4

Additional paid-in capital

  

4,318

 

4,889

 

(4,746)

  

4,461

Retained earnings

  

1,168

 

731

 

2,707

 

4,606

Accumulated other comprehensive income (loss)

  

-

 

(128)

  

(2)

  

(130)

 

Total common shareholders' equity

  

6,859

 

5,492

 

(3,410)

  

8,941

Long-term debt

  

3,665

 

2,225

 

1,938

 

7,828

 

Total capitalization

  

10,524

 

7,717

 

(1,472)

  

16,769

                   

Current Liabilities

                

Debt due within one year

  

1,464

 

178

 

1,977

 

3,619

Other

  

1,984

 

846

 

41

 

2,871

 

Total current liabilities

  

3,448

 

1,024

 

2,018

 

6,490

                   

Other Liabilities and Deferred Credits

                

Asset retirement obligations

  

1,493

 

377

 

-

 

1,870

Accumulated deferred income taxes

  

2,610

 

700

 

(45)

  

3,265

Regulatory liabilities

  

2,972

 

-

 

-

 

2,972

Other

 

786

 

494

 

190

 

1,470

 

Total other liabilities and deferred credits

  

7,861

 

1,571

 

145

 

9,577

                   

Commitments and Contingencies

                
                   

Total Capitalization and Liabilities

  

$ 21,833

 

$ 10,312

 

$ 691

 

$ 32,836

                   

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)

          
                   

December 31, 2005

  

Florida Power
& Light

FPL
Energy

  

Corporate &
Other

  

FPL Group,
Inc.

Property, Plant and Equipment

                

Electric utility plant in service and other property

$ 24,407

 

$ 8,611

 

$ 333

 

$ 33,351

Less accumulated depreciation and amortization

  

(9,530)

  

(1,253)

  

(105)

  

(10,888)

 

Total property, plant and equipment - net

  

14,877

 

7,358

 

228

 

22,463

                   

Current Assets

                

Cash and cash equivalents

  

56

 

83

 

391

 

530

Other

  

3,413

 

999

 

45

 

4,457

 

Total current assets

  

3,469

 

1,082

 

436

 

4,987

                   

Other Assets

  

4,380

 

968

 

206

 

5,554

                   

Total Assets

  

$ 22,726

 

$ 9,408

 

$ 870

 

$ 33,004

                   

Capitalization

                

Common stock

  

$ 1,373

 

$ -

 

$ (1,369)

  

$ 4

Additional paid-in capital

  

4,318

 

4,308

 

(4,444)

  

4,182

Retained earnings

  

1,046

 

580

 

2,880

 

4,506

Accumulated other comprehensive income (loss)

  

-

 

(192)

  

(1)

  

(193)

 

Total common shareholders' equity

  

6,737

 

4,696

 

(2,934)

  

8,499

Long-term debt

  

3,271

 

2,264

 

2,504

 

8,039

 

Total capitalization

  

10,008

 

6,960

 

(430)

  

16,538

                   

Current Liabilities

                

Debt due within one year

  

1,294

 

176

 

1,093

 

2,563

Other

  

3,560

 

1,065

 

79

 

4,704

 

Total current liabilities

  

4,854

 

1,241

 

1,172

 

7,267

                   

Other Liabilities and Deferred Credits

                

Asset retirement obligations

  

1,474

 

211

 

-

 

1,685

Accumulated deferred income taxes

  

2,647

 

419

 

(51)

  

3,015

Regulatory liabilities

  

2,971

 

-

 

-

 

2,971

Other

 

772

 

577

 

179

 

1,528

 

Total other liabilities and deferred credits

  

7,864

 

1,207

 

128

 

9,199

                   

Commitments and Contingencies

                
                   

Total Capitalization and Liabilities

  

$ 22,726

 

$ 9,408

 

$ 870

 

$ 33,004

                   

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
                   

Three Months Ended March 31, 2006

  

Florida Power
& Light

FPL
Energy

  

Corporate &
Other

FPL Group,
Inc.

Cash Flows From Operating Activities

                

Net income (loss)

  

$ 122

 

$ 151

 

$ (25)

  

$ 248

Adjustments to reconcile net income (loss) to net

                

cash provided by (used in) operating activities:

                

Depreciation and amortization

  

184

 

87

 

5

 

276

Nuclear fuel amortization

  

24

 

10

 

-

 

34

Storm-related costs

  

(282)

  

-

 

-

 

(282)

Amortization of storm reserve deficiency

  

32

 

-

 

-

 

32

Unrealized (gains) losses on marked to market energy contracts

  

-

 

(60)

  

(1)

  

(61)

Deferred income taxes and related regulatory credit

  

62

 

63

 

7

 

132

Cost recovery clauses and franchise fees

  

312

 

-

 

-

 

312

Change in accrued income taxes

  

139

 

(35)

  

(187)

  

(83)

Change in margin cash deposits

  

(382)

  

(2)

  

-

 

(384)

Other - net

  

(238)

  

(147)

  

44

 

(341)

Net cash provided by (used in) operating activities

  

(27)

  

67

 

(157)

  

(117)

                   

Cash Flows From Investing Activities

                

Capital expenditures of FPL

 

(487)

  

-

 

-

 

(487)

Independent power investments

  

-

 

(639)

  

-

 

(639)

Nuclear fuel purchases

  

(34)

  

(26)

  

(1)

  

(61)

Sale of independent power investments

  

-

 

-

 

-

 

-

Proceeds from sale of securities in nuclear decommissioning funds

  

634

 

17

 

-

 

651

Purchase of securities in nuclear decommissioning and storm funds

  

(652)

  

(18)

  

-

 

(670)

Proceeds from sale of other securities

  

-

 

-

 

20

 

20

Purchases of other securities

  

-

 

-

 

(31)

  

(31)

Funding of secured loan

  

-

 

-

 

-

 

-

Proceeds from termination and sale of leveraged leases

  

-

 

-

 

-

 

-

Other - net

  

(1)

  

(1)

  

(14)

  

(16)

Net cash provided by (used in) investing activities

  

(540)

  

(667)

  

(26)

  

(1,233)

                   

Cash Flows From Financing Activities

                

Issuances of long-term debt

  

392

 

-

 

-

 

392

Retirements of long-term debt

  

-

 

(37)

  

-

 

(37)

Retirements of preferred stock

  

-

 

-

 

-

 

-

Net change in short-term debt

  

170

 

-

 

314

 

484

Proceeds from purchased Corporate Units

  

-

 

-

 

210

 

210

Payment to terminate Corporate Units

  

-

 

-

 

(258)

  

(258)

Issuances of common stock

  

-

 

-

 

299

 

299

Dividends on common stock

  

-

 

-

 

(148)

  

(148)

Dividends & capital distributions from (to) FPL Group - net

  

-

 

581

 

(581)

  

-

Other - net

  

-

 

29

 

(3)

  

26

Net cash provided by (used in) financing activities

  

562

 

573

 

(167)

  

968

                   

Net increase (decrease) in cash and cash equivalents

  

(5)

  

(27)

  

(350)

  

(382)

Cash and cash equivalents at beginning of period

  

56

 

83

 

391

 

530

                   

Cash and cash equivalents at end of period

  

$ 51

 

$ 56

 

$ 41

 

$ 148

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)

          
                   

Three Months Ended March 31, 2005

  

Florida Power
& Light

FPL
Energy

  

Corporate &
Other

FPL Group,
Inc.

Cash Flows From Operating Activities

                

Net income (loss)

  

$ 111

 

$ 37

 

$ (11)

  

$ 137

Adjustments to reconcile net income (loss) to net

                

cash provided by (used in) operating activities:

                

Depreciation and amortization

  

219

 

72

 

6

 

297

Nuclear fuel amortization

  

17

 

6

 

-

 

23

Storm-related costs

  

(177)

  

-

 

-

 

(177)

Amortization of storm reserve deficiency

  

19

 

-

 

-

 

19

Unrealized (gains) losses on marked to market energy contracts

  

-

 

47

 

-

 

47

Deferred income taxes and related regulatory credit

  

97

 

120

 

(27)

  

190

Cost recovery clauses and franchise fees

  

67

 

-

 

-

 

67

Change in accrued income taxes

  

3

 

(136)

  

(25)

  

(158)

Change in margin cash deposits

  

-

 

5

 

-

 

5

Other - net

  

(92)

  

(122)

  

(22)

  

(236)

Net cash provided by (used in) operating activities

  

264

 

29

 

(79)

  

214

                   

Cash Flows From Investing Activities

                

Capital expenditures of FPL

 

(378)

  

-

 

-

 

(378)

Independent power investments

  

-

 

(296)

  

-

 

(296)

Nuclear fuel purchases

  

(21)

  

(1)

  

-

 

(22)

Sale of independent power investments

  

-

 

8

 

-

 

8

Proceeds from sale of securities in nuclear decommissioning funds

  

659

 

8

 

-

 

667

Purchase of securities in nuclear decommissioning and storm funds

  

(690)

  

(12)

  

-

 

(702)

Proceeds from sale of other securities

  

-

 

-

 

24

 

24

Purchases of other securities

  

-

 

-

 

(34)

  

(34)

Funding of secured loan

  

-

 

-

 

(27)

  

(27)

Proceeds from termination of leveraged lease

  

-

 

-

 

43

 

43

Other - net

  

(3)

  

-

 

-

 

(3)

Net cash provided by (used in) investing activities

  

(433)

  

(293)

  

6

 

(720)

                   

Cash Flows From Financing Activities

                

Issuances of long-term debt

  

-

 

506

 

-

 

506

Retirements of long-term debt

  

-

 

(7)

  

(600)

  

(607)

Retirements of preferred stock

  

(25)

  

-

 

20

 

(5)

Net change in short-term debt

  

200

 

-

 

-

 

200

Proceeds from purchased Corporate Units

  

-

 

-

 

-

 

-

Payment to terminate Corporate Units

  

-

 

-

 

-

 

-

Issuances of common stock

  

-

 

-

 

603

 

603

Dividends on common stock

  

-

 

-

 

(135)

  

(135)

Dividends & capital distributions from (to) FPL Group - net

  

-

 

(198)

  

198

 

-

Other - net

  

-

 

(37)

  

(3)

  

(40)

Net cash provided by (used in) financing activities

  

175

 

264

 

83

 

522

                   

Net increase (decrease) in cash and cash equivalents

  

6

 

-

 

10

 

16

Cash and cash equivalents at beginning of period

  

65

 

92

 

68

 

225

Cash and cash equivalents at end of period

  

$ 71

 

$ 92

 

$ 78

 

$ 241

                   
                   

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
                   

 

 

FPL Group, Inc.
Earnings Per Share Summary
(assuming dilution)
(unaudited)
           
     

Three Months Ended March 31,

     

2006

  

2005

Florida Power & Light Company

  

$ 0.31

 

$ 0.30

FPL Energy, LLC

  

0.38

 

0.10

Corporate and Other

  

(0.06)

  

(0.04)

           

Earnings Per Share

  

$ 0.63

 

$ 0.36

           
           

Reconciliation of Earnings Per Share to Adjusted Earnings Per Share:

        
           

Earnings Per Share

  

$ 0.63

 

$ 0.36

           

Adjustments:

        

Merger-related costs

  

0.01

 

-

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges,

        
 

primarily FPL Energy

  

(0.06)

  

0.08

           

Adjusted Earnings Per Share

  

$ 0.58

 

$ 0.44

           

 

 

FPL Group, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
 

First
Quarter

     

FPL Group - 2005 Earnings Per Share

$ 0.36

 
     

Florida Power & Light - 2005 Earnings Per Share

0.30

 

Customer growth

0.03

 

Usage due to weather

(0.01)

  

Underlying usage growth, mix and other

-

 

Depreciation expense

0.06

 

O&M expenses

(0.02)

  

AFUDC

(0.02)

  

Interest expense

(0.03)

  

Share dilution

(0.01)

  

Other

0.01

 

Florida Power & Light - 2006 Earnings Per Share

0.31

 
     

FPL Energy - 2005 Earnings Per Share

0.10

 

New investments

0.05

 

Existing assets

0.16

 

Asset optimization and trading

-

 

Restructurings activities

(0.03)

  

Non-qualifying hedges impact

0.14

 

Share dilution

-

 

Other, including interest expense

(0.04)

  

FPL Energy - 2006 Earnings Per Share

0.38

 
     

Corporate and Other - 2005 Earnings Per Share

(0.04)

  

FPL FiberNet operations

0.01

 

Merger-related costs

(0.01)

  

Share dilution

-

 

Other, including interest expense

(0.02)

  

Corporate and Other - 2006 Earnings Per Share

(0.06)

  

FPL Group - 2006 Earnings Per Share

$ 0.63

 


The sum of the quarterly amounts may not equal the total for the year due to rounding.

 

FPL Group, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)

        
         

March 31, 2006

  

Per Books

  

Adjusted 1

Long-term debt, including current maturities,

       

commercial paper, and notes payable:

        

Junior Subordinated Debentures2

  

$ 309

   

Project debt:

        
 

Natural gas-fired assets

  

376

   
 

Wind assets

  

1,303

   

Debt with partial corporate support:

        
 

Natural gas-fired assets

  

357

   

Other long-term debt, including current maturities,

        

commercial paper, and notes payable

  

9,102

 

$ 9,102

Total debt

  

11,447

 

9,102

Junior Subordinated Debentures2

      

309

Common shareholders' equity

  

8,941

 

8,941

Total capitalization, including debt due within one year

  

$ 20,388

 

$ 18,352

         

Debt ratio

  

56%

  

50%

 

December 31, 2005

  

Per Books

  

Adjusted 1

Long-term debt and preferred stock, including current maturities,

       

commercial paper, and notes payable:

        

Equity-linked debt securities

  

$ 506

   

Junior Subordinated Debentures2

  

309

   

Project debt:

        
 

Natural gas-fired assets

  

393

   
 

Wind assets

  

1,320

   

Debt with partial corporate support:

        
 

Natural gas-fired assets

  

358

   

Other long-term debt and preferred stock, including current maturities,

        

commercial paper, and notes payable

  

7,716

 

$ 7,716

Total debt and preferred stock

  

10,602

 

7,716

         

Junior Subordinated Debentures2

      

309

Common shareholders' equity

  

8,499

 

8,499

Equity-linked debt securities

      

506

Total capitalization, including debt due within one year

  

$ 19,101

 

$ 17,030

         

Debt ratio

  

56%

  

45%
 

1 Ratios exclude impact of imputed debt for purchase power obligations

2 Adjusted to reflect preferred stock characteristics of these securities (preferred trust securities)

 

 

FPL Group, Inc.
Commercial Paper, Notes Payable and Current Maturities
of Long-term Debt Schedule as of 3/31/06
(unaudited)

Type of Debt

Interest
Rate (%)

Payment
Date

  

Amount
(millions)

Florida Power & Light

          

Commercial Paper

VAR

 

VAR

  

$ 1,029

Notes Payable

VAR

 

VAR

  

300

FPL Fuels Senior Secured Notes

2.340

 

06/11/06

  

135

TOTAL FLORIDA POWER & LIGHT

        

1,464

           

FPL Group Capital

          

Commercial paper

VAR

 

VAR

  

314

Debentures

3.250

 

04/11/06

  

500

Debentures

7.625

 

09/15/06

  

600

Debentures

4.086

 

02/16/07

  

575

Fair value swap

        

(13)
           

FPL Energy

          
 

Principal Payments

6.876

 

06/27/06

  

10

 

Principal Payments

6.639

 

06/30/06

  

25

 

Principal Payments

7.520

 

06/30/06

  

18

 

Principal Payments

5.608

 

09/10/06

  

11

 

Principal Payments

6.125

 

09/25/06

  

3

 

Principal Payments

7.520

 

01/03/07

  

18

 

Principal Payments

5.608

 

03/10/07

  

9

 

Principal Payments

6.125

 

03/25/07

  

3

   

Total Senior Secured Bonds

        

97

           
 

Senior Secured Notes

          
 

Principal Payments

7.110

 

06/30/06

  

5

   

Total Senior Secured Notes

        

5

           
 

Construction Term Facility

          
 

Principal Payments

VAR

 

06/30/06

  

8

 

Principal Payments

VAR

 

12/31/06

  

19

   

Total Construction Term Facility

        

27

           
 

Other Debt

          
 

Principal Payments

VAR

 

Quarterly

  

6

 

Principal Payments

VAR

 

Quarterly

  

1

 

Principal Payments

VAR

 

05/31/06

  

22

 

Principal Payments

VAR

 

07/31/06

  

6

 

Principal Payments

VAR

 

11/30/06

  

11

 

Principal Payments

VAR

 

01/31/07

  

4

   

Total Other Debt

        

50

           
 

TOTAL FPL ENERGY

        

179

TOTAL FPL GROUP CAPITAL

        

2,155

TOTAL FPL GROUP, INC.

        

$ 3,619


May not agree to financial statements due to rounding.

 

 

FPL Group, Inc.
Long-term Debt, Net of Current Maturities
Schedule as of 3/31/06
(unaudited)

Type of Debt

Interest
Rate (%)

Maturity
Date

Amount
(millions)

Florida Power & Light

          

First Mortgage Bonds

          

First Mortgage Bonds

6.000

 

06/01/08

  

$ 200

First Mortgage Bonds

5.875

 

04/01/09

  

225

First Mortgage Bonds

4.850

 

02/01/13

  

400

First Mortgage Bonds

5.850

 

02/01/33

  

200

First Mortgage Bonds

5.950

 

10/01/33

  

300

First Mortgage Bonds

5.625

 

04/01/34

  

500

First Mortgage Bonds

5.650

 

02/01/35

  

240

First Mortgage Bonds

4.950

 

06/01/35

  

300

First Mortgage Bonds

5.400

 

09/01/35

  

300

First Mortgage Bonds

5.650

 

02/01/37

  

400

 

Total First Mortgage Bonds

        

3,065

           

Revenue Refunding Bonds

          

Miami-Dade Solid Waste Disposal

VAR

  

02/01/23

  

15

St. Lucie Solid Waste Disposal

VAR

  

05/01/24

  

79

 

Total Revenue Refunding Bonds

        

94

           

Pollution Control Bonds

          

Dade

VAR

  

04/01/20

  

9

Martin

VAR

  

07/15/22

  

96

Jacksonville

VAR

  

09/01/24

  

46

Manatee

VAR

  

09/01/24

  

17

Putnam

VAR

  

09/01/24

  

4

Jacksonville

VAR

  

05/01/27

  

28

St. Lucie

VAR

  

09/01/28

  

242

Jacksonville

VAR

  

05/01/29

  

52

 

Total Pollution Control Bonds

        

494

           

Industrial Bonds

          

Dade

VAR

  

06/01/21

  

46

 

Total Industrial Bonds

        

46

           

Unamortized discount

        

(33)

           

TOTAL FLORIDA POWER & LIGHT

        

3,666

           

FPL Group Capital

          
           

Debentures

6.125

 

05/15/07

  

500

Debentures (B Equity Units)

5.551

 

02/16/08

  

506

Debentures

7.375

 

06/01/09

  

225

Debentures

7.375

 

06/01/09

  

400

Debentures (Junior Subordinated)

5.875

 

03/15/44

  

309

 

Total Debentures

        

1,940

           

Unamortized discount

        

(3)
           

FPL Energy

          
 

Senior Secured Bonds

          
 

Senior Secured Bonds

6.876

 

06/27/17

  

99

 

Senior Secured Bonds

6.125

 

03/25/19

  

88

 

Senior Secured Bonds

6.639

 

06/20/23

  

314

 

Senior Secured Bonds

5.608

 

03/10/24

  

326

   

Total Senior Secured Bonds

        

827

 

Senior Secured Notes

7.520

 

06/30/19

  

233

 

Senior Secured Notes

7.110

 

06/28/20

  

102

           
           
 

Construction Term Facility

VAR

  

06/30/08

  

355

           
 

Other Debt

          
 

Other Debt

VAR

  

12/27/07

  

326

 

Other Debt

VAR

  

12/19/17

  

99

 

Other Debt

8.010

 

12/31/18

  

3

 

Other Debt

Part fixed & VAR

11/30/19

  

273

 

Other Debt

10.630 & 6.650

09/30/20

  

8

   

Total Other Debt

        

709

 

TOTAL FPL ENERGY

        

2,226

TOTAL FPL GROUP CAPITAL

        

4,163

TOTAL FPL GROUP, INC.

        

$ 7,829

May not agree to financial statements due to rounding.

Florida Power & Light Company
Statistics
(unaudited)
   

Quarter

Periods Ended March 31

  

2006

  

2005

Energy sales (million kwh)

        

Residential

  

11,374

 

11,397

Commercial

  

9,994

 

9,813

Industrial

 

985

 

984

Public authorities

  

148

 

145

Electric utilities

  

372

 

350

Increase (decrease) in unbilled sales

  

(568)

  

(758)

Interchange power sales

  

996

 

706

Total

  

23,301

 

22,637

         
         

Average price (cents/kwh) 1

        

Residential

  

11.76

 

9.54

Commercial

  

10.55

 

8.19

Industrial

  

8.73

 

6.65

Total

  

11.03

 

8.78

         

Average customer accounts (000's)

        

Residential

  

3,881

  

3,799

Commercial

  

475

  

465

Industrial

  

21

  

20

Other

  

2

  

3

Total

  

4,379

  

4,287

1 Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund.
 

2006

  

Normal

 

2005

Three months ended March 31

          
 

Heating degree-days

191

 

214

 

198

 

Cooling degree-days

35

 

49

 

36