April 1, 2008
FPL releases strategic plan for meeting Florida's energy needs

JUNO BEACH, Fla. – Florida Power & Light Company filed its 10-year plan for meeting the state’s energy needs with the Florida Public Service Commission today, outlining a strategy that combines prudent additions in generating capacity with industry-leading demand-side management programs that will avoid the need to build four medium-sized power plants.  

FPL, which currently serves 4.5 million customers in 35 counties, projects it will need an additional 5,600 megawatts of power, or an increase of about 25 percent, to meet rising demand through 2017. FPL expects its customer base to grow to 5.3 million by 2017, coupled with a 16 percent increase in energy use per residential customer. 

“We expect a significant increase in demand for electricity over the next decade, and we will meet this demand by maximizing our proven energy efficiency programs and by providing our customers with additional energy that is safe, dependable, efficient and clean,” said FPL President Armando Olivera.  

Highlights of FPL’s “Ten Year Power Plant Site Plan, 2008-2017” include:  

  • Upgrades to FPL’s existing nuclear plants at Turkey Point and St. Lucie to generate additional emission-free energy.
  • A proposed expansion of renewable energy from a variety of sources, especially solar power.
  • Construction of a clean natural gas unit at the company’s West County Energy Center in Palm Beach County.
  • Potential repowerings and additional clean natural gas-fired generation to continue to provide reliable electric service to our customers.

“The plan we have outlined will reduce the rate of carbon dioxide emissions though energy conservation and cleaner generation, promote stability in customer bills by increasing nuclear capacity, and create the option for repowering aging plants if a third gas plant at West County is approved,” said Olivera.  

In addition, FPL’s industry-leading demand-side management (DSM) programs are expected to avoid the need for 1,850 megawatts of generation, or four medium-sized natural gas plants. To date, FPL’s DSM efforts have avoided the need to build 12 power plants. “For FPL, conservation is the first energy resource used to meet customer demand,” Olivera said.   

FPL’s generation plan through 2017: new facilities and expansions 

2009: West County Energy Center Unit 1 (combined-cycle natural gas; 1,219 megawatts; under construction).

2009-2017: Firm capacity renewable energy -- solar thermal, photovoltaic, biomass and waste-to-energy -- from purchases and/or from FPL development.

2010: West County Energy Center Unit 2 (combined-cycle natural gas; 1,219 megawatts; under construction).

2011-2012: Uprates of Turkey Point and St. Lucie nuclear plants (414 megawatts total; under construction), plus a proposed Unit 3 at West County Energy Center (combined-cycle natural gas; 1,219 megawatts).

2013-2014: A potential combined-cycle natural gas plant or repowering of existing plants.

2016: Two potential combined-cycle natural gas plants.  

Currently, FPL obtains 52 percent of its energy from natural gas, 19 percent from nuclear, 15 percent from purchased power (including 2 percent renewable), 8 percent from oil and 6 percent from coal. By 2017, the role of natural gas is expected to grow, while the shares of nuclear, coal, oil and purchased power will decline. If FPL is unable to bring two new nuclear units at Turkey Point online in 2018 and 2020 as planned, by 2021 natural gas as a share of the fuel mix would reach 75 percent.  

Florida Power & Light Company is a 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 over $15 billion and a growing presence in 27 states, FPL Group is widely recognized as one of the country's premier power companies. Florida Power & Light Company serves 4.5 million customer accounts in Florida. FPL Energy, LLC, FPL Group's competitive energy 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. 

Cautionary Statements And Risk Factors That May Affect Future Results

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group and Florida Power & Light Company (Florida Power & Light) are hereby providing cautionary statements identifying important factors that could cause FPL Group's or Florida Power & Light's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and Florida Power & Light in this press release, on their respective websites, in response to questions or otherwise.  Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance, climate change strategy or growth strategies (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, aim, believe, could, estimated, may, plan, potential, projection, target, outlook, predict, intend) are not statements of historical facts and may be forward-looking.  Forward-looking statements involve estimates, assumptions and uncertainties.  Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or Florida Power & Light's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and Florida Power & Light. 

Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and Florida Power & Light undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made.  New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The following are some important factors that could have a significant impact on FPL Group's and Florida Power & Light's operations and financial results, and could cause FPL Group's and Florida Power & Light's actual results or outcomes to differ materially from those discussed in the forward-looking statements: 

  • FPL Group and Florida Power & Light are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions, including, but not limited to, initiatives regarding deregulation and restructuring of the energy industry and environmental matters, including, but not limited to, matters related to the effects of climate change.  Florida Power & Light holds franchise agreements with local municipalities and counties, and must renegotiate expiring agreements.  These factors may have a negative impact on the business and results of operations of FPL Group and Florida Power & Light.
  • The operation and maintenance of transmission, distribution and power generation facilities, including nuclear facilities, involve significant risks that could adversely affect the results of operations and financial condition of FPL Group and Florida Power & Light.
  • The construction of, and capital improvements to, power generation facilities, including nuclear facilities, involve substantial risks.  Should construction or capital improvement efforts be unsuccessful, the results of operations and financial condition of FPL Group and Florida Power & Light could be adversely affected.
  • Because FPL Group and Florida Power & Light rely on access to capital markets, the inability to maintain current credit ratings and to access capital markets on favorable terms may limit the ability of FPL Group and Florida Power & Light to grow their businesses and would likely increase interest costs.
  • Customer growth in Florida Power & Light’s service area affects FPL Group's and Florida Power & Light's results of operations. 
    • FPL Group's and Florida Power & Light's results of operations are affected by the growth in customer accounts in FPL's service area.  Customer growth can be affected by population growth as well as economic factors in Florida, including, but not limited, to job and income growth, housing starts and new home prices.  Customer growth directly influences the demand for electricity and the need for additional power generation and power delivery facilities at Florida Power & Light.
        •  Weather affects FPL Group's and Florida Power & Light's results of operations.   
        • FPL Group and Florida Power & Light are subject to costs and other effects of legal proceedings as well as changes in or additions to applicable tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements. 
        • Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt FPL Group's and Florida Power & Light's business may impact the operations of FPL Group and Florida Power & Light in unpredictable ways.
        • The ability of FPL Group and Florida Power & Light to obtain insurance and the terms of any available insurance coverage could be affected by national, state or local events and company-specific events.
        • FPL Group and Florida Power & Light are subject to employee workforce factors that could affect the businesses and financial condition of FPL Group and Florida Power & Light. 

        The risks described herein are not the only risks facing FPL Group and Florida Power & Light.  Additional risks and uncertainties not currently known to FPL Group or Florida Power & Light, or that are currently deemed to be immaterial, also may materially adversely affect FPL Group's or Florida Power & Light's business, financial condition and/or future operating results.