FPL's Investment Plans in Florida Put on Hold

| About: FPL Group (FPL-OLD)

Florida Power & Light Company, a subsidiary of FPL Group Inc. (FPL-OLD), announced the suspension of projects worth $10 billion in Florida, following the Florida Public Service Commission (PSC) turning down its proposal to raise base rates. These projects represented the company’s investment in Florida's energy infrastructure over the next five years, which would have created about 20,000 direct and indirect construction and related jobs.

FPL said it will immediately suspend activities on: development of two new nuclear energy reactors at Turkey Point; modernization of the Riviera Beach and Cape Canaveral plants; the proposed Florida EnergySecure natural gas pipeline; and, numerous discretionary infrastructure projects targeting improvements in efficiency and reliability within FPL’s power generation, transmission and distribution units.

Management said that it understands that there is no ideal time for a raise in base rates. However, it said their proposal was to reduce customers’ bills simultaneously investing billions of dollars in Florida for upgraded and more efficient electrical energy infrastructure. Management commented that the regulatory and business environment in Florida is deteriorating as evident from the commissions’ decision.

Historically, FPL has been one of Florida’s largest sources of capital investment, generating tens of thousands of jobs and hundreds of millions of dollars in tax revenues tied to its annual investments in the state’s electrical infrastructure.

Juno Beach, Florida based FPL Group Inc. is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The company operates both regulated and non-regulated energy-related products and services in 27 states and Canada. Over the years, FPL has made tremendous progress implementing its long-term generation strategy.