Changing Currents: 2000-present
Industry and economic challenges | New ways to manage | New plants | New programs | Reasonable Rates | Disciplined growth
"I believe it's wholly irresponsible and unacceptable for corporate leaders such as those at Enron to say they did not know -- or suggest it was not their duty to know -- about the operations and activities of their company. This is especially so when it comes to risks that threaten the fundamental viability of their company."
Quote: Lew Hay, FPL Group Chairman and CEO, 2002.
Industry and economic challenges
Since 2001, the electric industry has faced challenging events that continue to have an impact on FPL Group:
- The California energy debacle followed by warnings of a national power shortage, then fear of a glut of generating capacity in most regional markets.
- The collapse of Enron and other companies, raising serious concerns about business ethics and financial integrity.
- Economic recession and toughening of credit and credit rating standards.
- Changing federal rules about how transmission assets should be structured and managed.
- Changing rules governing pricing in "unregulated" markets.
- The tragic events of Sept. 11, 2001.
- Continued volatility in market prices for oil and natural gas, key fuels used in generating electricity.
- New federal energy legislation, with important provisions related to wind energy, nuclear power, energy conservation and industry structure.
New ways to manage
FPL Group is responding with initiatives that include:
- improving commercial skills and pioneering new ways to do business
- streamlining operations and lowering costs
- improving customer focus, service and responsiveness,
- growing its wind power and nuclear power businesses and achieving greater fuel diversity in key regional markets,
- maintaining a corporate governance structure and financial reporting process that reflect the best practices in the industry.
In recognition of our achievements in clean energy production, environmental excellence, customer satisfaction and shareholder value, FPL Group was named the 2003 winner of the Edison Award, the electric industry's highest honor.
Edison Award presented to FPL Group in June 2003
FPL added its 4 millionth customer in 2002 and continues to be one of the nation's fastest-growing electric utilities, adding new state-of-the-art efficient power plants to meet our customers' growing demand for electricity:
- More than 1,000 megawatts of generation were added to FPL's system in 2002 with the completion of the Fort Myers repowering project and the first half of the Sanford repowering project. Both facilities are powered with clean-burning natural gas.
- An additional 1,900 megawatts entered service at the Manatee and Martin plants in 2005.
- Work has begun on a new natural gas-fired power generating unit on the site of our Turkey Point power plants south of Miami. The new unit will serve some 230,000 Florida homes and businesses beginning in 2007.
- FPL's total system capability, including purchased power, currently is more than 22,000 megawatts.
Rendering of Manatee Power Plant expansion in Parrish, Fla.
FPL is sharpening its focus on improving customer satisfaction and continuing its commitment to quality and reliability with progressive measures such as:
- Providing expanded services on its Web site,
www.fpl.com. Customers can receive and pay their electric bill, connect or disconnect service, access useful energy information such as an online home energy audit, and more.
- Offering a variety of conservation and load management programs to help customers hold down their energy costs. Over the past two decades, these programs have avoided the need to build 10 additional power plants.
- Initiating Tech 21, a program to implement high-tech information and management systems to improve service to customers. One of these systems, for example, provides an automated phone line for customers to call to find out why an outage occurred and when their power will be restored.
- Supporting development of new electric technologies.
In 2002, the Florida Public Service Commission (PSC) approved a $1 billion rate reduction for FPL customers through 2005. The agreement builds upon a similar three-year, $1 billion rate decrease in 1999 - the largest in Florida history.
In August 2005, the PSC approved a new rate agreement ensuring that base electric rates for FPL customers will not increase through 2006.
Though FPL’s fuel costs have increased substantially over the last few years, FPL's base rates were last raised in 1985.
As FPL prepares for the challenges that lie ahead, the company continues to deliver quality products and services at reasonable prices.
FPL Energy is the largest developer and operator of wind-power generation in the world, and an industry leader in the production of clean energy. With projects in more than 20 states, more than 80 percent of its generation comes from natural gas or renewable resources, such as wind, hydro and solar. FPL Energy has nearly 12,000 megawatts of power plants in operation and another 500+ megawatts under construction.
FPL Energy in 2002 acquired a controlling interest in one of the nation's newest nuclear power plants, Seabrook Station in New Hampshire. The 1,161 megawatt facility represents more than one-third of FPL Energy's power generation assets in the Northeast and provides more than 7 percent of the electricity used in New England.
FPL FiberNet, a subsidiary formed in 2000, provides wholesale telecommunications services in Florida to major local, long-distance and wireless telecommunications companies and Internet service providers. Florida is the nation's fourth largest telecommunications market and FPL FiberNet has successfully focused on building its intra-city network in major metropolitan areas of the state where demand continues to grow.
FPL Energy wind turbines.