June 2, 2004
PSC approves need determination request for FPL’s Turkey Point Unit 5 expansion plan

JUNO BEACH, Fla. -- The Florida Public Service Commission today unanimously approved Florida Power & Light Company’s proposed Turkey Point power plant expansion plan as the best, most cost-effective project to meet customer needs for electricity beginning in 2007.

The unit was selected after being compared to more than 40 options, both FPL self-build alternatives and options from independent power producers gathered through a competitive capacity solicitation and an FPL assessment of the market. Numerous combinations were analyzed and FPL's Turkey Point unit was the most cost-effective option by at least $271 million over the life of the unit. This was confirmed by an independent evaluator.

“We are pleased that the PSC, after thoroughly reviewing the testimony and data provided over the past several months, affirmed that building the Turkey Point project offers the best, most cost-effective and reliable option for our customers,” said Armando Olivera, FPL president. “FPL’s proposed Turkey Point unit will use a proven technology that will result in a very efficient, highly available and therefore low-cost source of electricity readily available to serve the increasing needs of our customers in South Florida.”

The proposed Turkey Point project is a state-of-the-art, natural gas-fired combined-cycle generating unit capable of delivering approximately 1,100 megawatts of power capable of serving the equivalent of approximately 230,000 homes and businesses. The project is expected to cost nearly $600 million.

“In our discussions with the community in south Florida to date, many people have told us they recognize the need for more power in south Florida to meet growth and maintain reliability, and that it makes sense to make use of an existing site rather than use new land resources. We’re pleased that the PSC today has moved us one more step closer to making that happen,” Olivera said.

The PSC’s decision, along with project recommendations from other state agencies, including the Department of Environmental Protection, are all needed to complete Florida’s comprehensive power plant site certification process. The state process includes a hearing by an administrative law judge scheduled for September 7-10, followed by review and a final decision on the project from the governor and Cabinet. That review is expected to take place early next year. Additional approvals also are needed from several federal agencies.

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 $9 billion and a growing presence in 26 states, FPL Group is widely recognized as one of the country's premier power companies. Florida Power & Light Company serves more than 4.2 million customer accounts in Florida. FPL Energy, LLC, FPL Group's wholesale electricity 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.