August 14, 2003
FPL announces power resources needed in 2007 to meet growth in South Florida; issues a "request for proposals"

JUNO BEACH, Fla. - Florida Power & Light Company today announced the need to increase its power resources in 2007 to respond to significant growth occurring in Florida, particularly in South Florida.

The company said it plans to add capacity by either building its own plant or purchasing power from other companies, selecting whichever is the best and most cost-effective way to meet customers' needs. A notice of FPL's "request for proposals" was issued today outlining the company's power needs, as well as identifying FPL's proposed project, in accordance with Florida Public Service Commission rules.

FPL's self-build option involves adding a new, natural gas-fired plant capable of serving approximately 230,000 customers to its existing 11,000-acre Turkey Point plant site near Florida City. Using a competitive bidding process that complies with the PSC's bid rule, FPL is seeking purchased-power proposals from other companies to evaluate against the Turkey Point option in order to arrive at a final selection no later than spring 2004.

"Responding to growth by selecting the best and most cost-effective power resources for customers continues to be a priority for our company," said FPL President Armando Olivera. "We have recently completed new plants in southwest and northern Florida and are building additional plants in Manatee and Martin counties.

"Now, our attention must turn to meeting the increased demand for electricity that comes from the significant growth that is occurring in Miami-Dade and southeast Florida."

According to FPL, 45 percent of the electricity that its customers use in Broward and 40 percent in Miami-Dade are imported from FPL plants and other resources outside the region. While the system is designed for power plants to deliver electricity to FPL's large electric grid -- and power lines to then supply electricity wherever and whenever customers want it -- it is still important to ensure the system is reasonably balanced. Additional generation in South Florida would begin to restore this imbalance and improve our system's overall reliability.

The FPL Turkey Point option

If selected as the best and most cost-effective option to meet customers' electricity needs, FPL's new Turkey Point unit would be among the cleanest, most environmentally advanced and efficient power plants in the nation. By placing new generation where growth is occurring, the proposed natural gas-fired generating unit also would improve system reliability.

The new unit would join four existing generating units at the site, including two 400-megawatt oil/gas-fired units and two 700-megawatt nuclear units.

FPL analyzed a number of other potential FPL projects and sites before concluding that Turkey Point is its best and most cost-effective project self-build option. New construction at Turkey Point would be able to make use of plant infrastructure already in place. Additionally, the site is already served by a natural gas pipeline for fuel deliveries and by transmission power lines that deliver electricity to customers, though some upgrades may be needed.

"We believe the Turkey Point option offers customers the opportunity for reliable energy, using a cleaner-burning fuel at a site specifically established for power generating facilities. That's cost conscious and helps conserve Florida's land resources," Olivera said.

"In the months ahead, we are committed to continuing our dialogue with our Turkey Point and South Miami-Dade neighbors. By doing so, we believe we can better align the benefits of this option with the interests and priorities of the communities we serve."

The Turkey Point option would:

• Add a nominal 1,100 megawatt, state-of-the-art, natural gas-fired combined-cycle plant capable of producing enough power to serve approximately 230,000 new homes and businesses.
• Utilize 65 acres designed for future power plant expansion at an existing 11,000-acre power plant property.
• Help balance the FPL system grid by adding power in a region where current customer demand is the greatest and where demand growth is forecasted to continue.
• Increase output at the Turkey Point site from 2,200 to 3,300 megawatts, which is enough energy to serve a total of approximately 690,000 homes and businesses.
• Improve system reliability by placing generation where growth is occurring.
• Provide additional power in an environmentally responsible and highly efficient manner.
• Represent a total project cost of approximately $600 million.

Combined-cycle generating technology produces electricity from two stages of production instead of one. In the first stage, energy is produced through fuel combustion in a turbine similar to a jet engine. In the second stage, hot exhaust from the turbines is used to make steam. Energy from both stages then drives turbines and electric generators to produce electricity. In all, this method of generating electricity is about 30 percent more efficient than methods relying on a traditional steam plant.

Olivera said FPL will continue its commitment to conservation programs as well as load management programs that help meet peak periods of high electricity use. FPL customers have helped defer the need for 10 power plants over the past two decades by adopting cost-effective conservation measures and by participating in voluntary programs where power to certain appliances can be automatically reduced at peak periods in return for a credit or discount on monthly bills. Additionally, FPL is developing future "green power" options for its customers.

The utility also said that for future capacity requirements beyond 2007, it expects to consider projects using other fuels, such as coal, to enhance fuel diversity and system reliability.

Miami-Dade residents are invited in the coming weeks to learn more about the proposed Turkey Point expansion project, share your interests and priorities, request a presentation or sign up to be on a mailing list for future updates by visiting www.FPL.com/turkeypoint, by contacting Ramon_Ferrer@FPL.com or by calling 1-866-362-4888.

The FPL "request for proposals"

In the interest of making sure customers get the best and most cost-effective new sources of future electricity, Olivera said the utility also welcomes and will thoroughly evaluate alternative third-party offers for better and more cost-effective proposals than Turkey Point.

In its "request for proposals" (RFP) notice issued today, FPL said the company is soliciting proposals for firm capacity and energy to satisfy a need for approximately 1,066 megawatts starting June 1, 2007. This is the amount of power FPL forecasts it will need to serve customer growth, including the 20 percent reserve margin required by the Florida Public Service Commission.

FPL will be conducting its RFP under a revised PSC bid rule put in place last year to provide bidders with more project information and more insight into FPL's evaluation process.

Proposals in response to the RFP are due no later than Oct. 24. Following a first round of evaluation, FPL plans to announce a short list of proposals in mid-January with a final selection planned for no later than mid-May 2004.

Under the requirements of Florida's Power Plant Siting Act, most proposed capacity additions also must undergo about 18-months of multi-agency review coordinated by the Florida Department of Environmental Protection and a PSC review and hearing. In a PSC hearing, the commission rules on the need for the project and determines whether the best and most cost-effective generation option has been selected for customers.

Potential bidders interested in submitting proposals in response to FPL's RFP may obtain further information by contacting FPL's RFP contact person Steven_Scroggs@FPL.com or by calling 305-552-4199.

Florida Power & Light Company is the principal subsidiary of FPL Group, Inc. (NYSE: FPL), nationally known as a high quality, efficient and customer-driven organization focused on energy-related products and services. With annual revenues of more than $8 billion and a growing presence in 24 states, FPL Group is widely recognized as one of the country's premier power companies. Florida Power & Light Company serves more than 4 million customer accounts in Florida. FPL Energy, Inc., FPL Group's energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPL.com, www.FPLGroup.com and www.FPLEnergy.com.