FPL Facts

Florida Power & Light Company is among the largest and fastest-growing electric utilities in the United States. In 2005, the company’s average number of customer accounts grew by more than 97,000, or 2.3 percent, to more than 4.3 million.

Electricity sales

Customer energy usage

Average monthly energy usage per customer (in kwh)

All-time high energy usage

Keeping base rates down

FPL is an industry leader in managing costs even as it continues to expand its electric system, improve reliability and satisfy customer needs. The company’s operations and maintenance costs per kilowatt-hour (kwh) remain well below the industry average. FPL’s residential customers today enjoy the most reliable and lowest-cost electricity service from any investor-owned utility in peninsular Florida and one of the best values in the United States.

Since 1999, FPL has reduced its base rates by 15 percent, saving customers approximately $4 billion. FPL’s base rates were last increased in 1985. Since that time, FPL has added approximately 1.7 million customers and invested more than $19 billion in capital projects to ensure reliable service.

Battling high fuel costs

FPL takes seriously its commitment to provide customers reliable and cost-effective electric service. Meeting this commitment can be challenging, particularly when FPL and others in the U.S. electric industry are facing such extraordinarily high costs for oil and natural gas used to generate a significant portion of the nation’s electricity.

While FPL can’t control the market price of fuel, the company has been taking major steps to address this issue. FPL’s cost-containment strategies include using different types of fuel (such as lower-cost nuclear and coal); power plants that switch between gas and oil, depending on which has a lower cost; fixed fuel price contracts; building more energy-efficient generation units and much more. FPL’s commitment to holding the line on costs is absolute and never ending. Believing today’s advanced coal and nuclear generation technologies can help meet customers’ needs for reliable and lower-cost generation, FPL is pursuing both of these technologies as potential additions to the company’s generation portfolio.

Understanding the fuel pricing system

Since 1999, natural gas prices have increased by nearly 700 percent – and crude oil prices by almost 400 percent. FPL makes no profit on fuel used to generate electricity, and buys only the fuel required to serve customers and meet their electricity consumption needs – a 30 percent increase in consumption per household since 1985. Because fuel prices are a direct pass through, FPL customers will never pay a penny over what the company pays to cover its fuel costs. And, if fuel prices should once again recede, the fuel price portion of the electric bill – which will be more than half of a customer’s bill in 2006 – would be reduced.

Due in large part to FPL’s sensitivity to Florida’s unique natural environment, the company has a fuel mix that is more heavily weighted in clean-burning natural gas (42 percent in 2005, based on megawatt-hours produced) than in other fuels.

Even with a higher percentage of natural gas in its portfolio, however, FPL has been able to keep overall rates lower than most electric utilities in the nation.

A recognized leader in energy conservation

The company invested $103 million on conservation incentives and load management in 2005. Among these programs are incentives for customers to:

• upgrade heating and cooling systems to high energy-efficient equipment;
• repair leaking ductwork that wastes energy;
• add attic insulation in homes where it is inadequate;
• allow FPL to cycle off certain appliances during times of high energy use (in the form of a credit on their bills); and
• participate in FPL’s Low-Income Weatherization Program.

FPL’s BuildSmart® program also encourages new home builders and buyers to construct energy-efficient dwellings.

Additionally, FPL performed more than 125,000 energy surveys – either in person, online or by telephone – for Florida customers in 2005, and the company plans to increase that to nearly 130,000 in 2006. With more than 1.87 million customers in total participating in FPL’s industry-leading conservation and energy management programs during the past two decades, enough energy demand reduction has been accomplished (4,223 megawatts) to avoid building the equivalent of 10 medium-sized power plants.

A relentless focus on reliability

One of the hallmarks of FPL is its strong all-around operating performance, and the company continues to excel across its operations. FPL has re-powered older, less efficient generating units and is building new units that now take less fuel to produce the same amount of electricity. In fact, FPL’s fossil fuel power plant fleet is 12 percent more efficient than it was just five years ago, and the fuel savings during that period due to system efficiency improvement is more than $450 million.

Meeting growth in customer demand

FPL continues significant investment in its system to meet the demands of a rapidly growing customer base and increased customer electric use. For each of the past three years, FPL has invested on average nearly $1.5 billion in new power generation and delivery systems. The company expects a similar level of investment for the next three years as well.

• In mid-2005, FPL completed power plant expansions at its Martin and Manatee plant sites. The two projects added approximately 1,900 megawatts of natural gas-fired generation to FPL’s power generation portfolio. The new additions provide enough power to meet the needs of approximately 400,000 homes and businesses.
• FPL also began construction on its Turkey Point power plant expansion project. This 1,144-megawatt, natural gas-fired unit in south Miami-Dade County is expected to begin operation in mid-2007 and will be capable of providing enough electricity to serve 230,000 homes and businesses.
• In addition to increasing generation, FPL plans to invest approximately $650 million annually through the end of the decade in its transmission and distribution infrastructure (poles, wire and related systems), all to meet the growing demand for electricity in Florida.

Power generation

As of Dec. 31, 2005

* Represents FPL's net ownership interest in plant capacity: St. Lucie nuclear: 100 percent of Unit 1, 85 percent of Unit 2; St. John's River: 20 percent of each of two units; Scherer: 76 percent of Unit 4.

**FPL is seeking Florida Public Service Commission approval to construct two new units - one to come into service in 2009 and the other in 2010. A decision is expected later in 2006.

Strengthening our system against storms

The weather patterns have changed in Florida, and FPL is changing, too. To strengthen its grid against the ravages of hurricanes, FPL has developed a Storm Secure® Plan that addresses a variety of issues, including:

• Rapid completion of post-hurricane follow-up repairs and facility upgrades prior to the 2006 hurricane season.
• Adopting new standards for new construction, and targeted upgrades to FPL’s system so it will withstand higher wind velocities.
• Encouraging the conversion of more overhead lines to underground.
• Revising pole inspection processes.
• Increasing line clearing and vegetation management, particularly around critical infrastructure.

An industry leader

In recognition of FPL’s post-hurricane power restoration performance, the company was presented the Emergency Response Award in 2004 and 2005 by the Edison Electric Institute (EEI), a leading trade association comprised of electric industry peers.

FPL also won EEI’s Emergency Assistance Award for helping Louisiana- and Texas-based utilities following Hurricane Rita. In addition, EEI honored the company with a third award: the EEI Community Advocacy Award for the Right Tree Right Place program. This public education program guides customers through the selection process for the right tree to be planted adjacent to overhead power lines.

Committed to the community

• BuildSmart for Humanity, FPL’s new regional partnership with Habitat for Humanity, allows FPL to incorporate its BuildSmart® energy conservation features into 300 Habitat homes. Upgrades help homes become up to 30 percent more energy efficient than state law requires and help customers save hundreds of dollars annually on energy bills. In addition, FPL is sponsoring the building of 14 Habitat homes that will be supported by volunteer labor from FPL employees.
• FPL’s Care To Share program is another way the company helps customers. Founded in 1994, Care To Share has awarded nearly 42,000 families in crisis with $7.2 million in emergency funding to help pay their electric bills. FPL significantly increased its annual contribution in 2006 to $1 million.
• FPL’s Electrifying Experience and Energy Whys are school-based science and safety outreach programs tied to state and national science standards at many grade levels.
• Captain Conservation Saves the Day is a new assembly-style program for elementary students at public schools in FPL’s service area. Students learn the value of conserving energy at home and school. The objective is for students to share and discuss energy conservation ideas with family members and friends.