August 18, 2005
With ongoing growth in its service area, FPL issues a “request for proposals” for power resources needed beginning in 2009

JUNO BEACH, Fla. – Florida Power & Light Company today confirmed the need to increase its power resources beginning in 2009 to respond to significant growth occurring in Florida, particularly in South Florida. In 2004, FPL added more than 100,000 new customers. Forecasts for increased customer use of electricity and growth are expected to continue throughout the coming decade.

In issuing a notice regarding its “request for proposals,” the company outlined its future power needs and identified FPL’s proposed projects, in accordance with Florida Public Service Commission rules. The company said it plans to add capacity by either building its own plants or purchasing power from other companies, selecting whichever is the best and most cost-effective way to meet customers’ needs.

FPL’s self-build options call for adding four new generating units as outlined in its annually updated, ten-year plan, which was filed with the Florida PSC in April 2005. The first two units would be operational in 2009 and in 2010 and consist of two, 1,100-megawatt natural gas-fired, combined-cycle generating units in western Palm Beach County. These units would be followed by two 850-megawatt advanced technology coal generating units, which are proposed to be located in southwestern St. Lucie County in 2012 and 2013. The four planned units would be capable of serving approximately 800,000 homes and businesses.

Using a competitive bidding process, FPL is seeking proposals from other companies to evaluate against its proposed projects. The 2005 two-part RFP seeks alternatives to FPL’s western Palm Beach County projects by Nov. 9, 2005 with a final decision by early 2006. Part 2 of the RFP includes preliminary information on FPL’s ten-year projected resource needs, as well as FPL’s need for fuel diversity. An RFP supplement will be issued in mid-2006 seeking competitive bids for the longer term resource requirements and fuel diversity needs.

“Responding to growth and maintaining safe and reliable service 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. “Earlier this summer, we completed new plants in Manatee and Martin counties that added 1,900 megawatts to meet customer needs. We also started construction on a 1,100 megawatt plant in Miami-Dade County that will begin serving customers in 2007.

“Now, our attention must turn to meeting our customers’ needs toward the end of this decade and the beginning of the next, while at the same time adjusting our overall fuel diversity to help mitigate rising fuel prices for oil and natural gas,” Olivera added.

The combined-cycle and advanced technology coal options

If selected as the best and most cost-effective option to meet customers’ electricity needs, FPL’s new generation projects 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 units would also improve system reliability.

FPL’s two proposed natural gas-fired combined-cycle units and its two proposed advanced technology coal-fired units were selected to help maintain a balanced fuel supply for FPL customers. This selection was the result of FPL’s integrated resource planning process, involving the analysis of many potential FPL projects and sites. The selection process addresses many factors, including the proximity of sites to transmission lines, fuel pipelines and railroad lines, for example, while also respecting and remaining compatible with the surrounding regions’ environment and existing land uses.

“In the case of each of the projects, we are committed to an ongoing community outreach and dialogue with neighbors, which we began earlier this year. By doing so, we believe we can better align the benefits of these options with the interests and priorities of the communities we serve,” Olivera said.

Olivera also said FPL will continue its commitment to conservation programs as well as load management programs that help meet peak periods of high electricity use.

“This summer’s record breaking heat and high customer demand has resulted in a number of new peaks on our system, including a new all-time peak of 22,361 megawatts set yesterday (8/17),” Olivera said. “While we need to plan for the future, we want to urge our customers to use energy wisely right now to help moderate their electricity bills.”

Over the past two decades, FPL customers have helped defer the need for 10 power plants 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. FPL plans to continue that effort by deferring yet two more power plants in the coming decade. The company also offers customers renewable “green power” options as an alternative to building new plants.

To learn more about FPL’s proposed projects, share your interests and priorities, request a presentation or sign up to be on a mailing list visit us at www.FPL.com About Us: Power Plant Projects.

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 FPL’s projects.

In the RFP notice issued today, FPL provided the following information to prospective developers:

Under the requirements of Florida’s Power Plant Siting Act, most proposed capacity additions also must undergo about 12 to18 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. The final approval of the project must come from the governor and Cabinet sitting as the Power Plant Siting Board.

Potential bidders interested in submitting proposals in response to FPL’s RFP may obtain further information by visiting FPL’s Web site at www.FPL.com/2005rfp, 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 $10 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 4.3 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.