About Us — FPL Group Strengths

FPL Group

Florida Power & Light

FPL Energy

Financially Strong and Growing

FPL Group provided a 36-percent total shareholder return in 2006 – the second best of all major utilities. The company’s performance surpassed two key peer indices – the S&P Electric Utilities and the Dow Jones U.S. Electricity Index – as well as the Standard & Poor’s 500 Index.

A Leader Among Its Peers

FPL Group is ranked first among electric and gas utilities in FORTUNE^® magazine’s "America’s Most Admired Companies" edition, dated March, 2008.

FPL Group Highlights (2006)

	Operating Revenues	$15,710 million
	Net Income	$1,281 million
	Earnings per Share (assuming dilution)     Net unrealized mark-to-market (gains) losses associated with     non-qualifying hedges – FPL Energy     Merger-related costs	$3.23 ($0.23) $0.04
	Adjusted Earnings per Share	$3.04
	Cash Flows from Operating Activities	$2,498 million
	Total Assets	$35,991 million
	Total Generating Capacity (includes purchased power)	37,994 megawatts
	Employees (year end)	13,344
	Geographic Presence	Operations in 26 states

An Environmental Leader

FPL Group has long believed that meeting customers’ demand for electricity must go hand-in-hand with preserving, protecting and enhancing the environment. FPL Group is one of the cleanest electric generating companies in the nation, and in fact, the company has been instrumental in calling for mandatory greenhouse gas emission reductions.

FPL Group’s commitment to the environment has been widely recognized:

• In January 2007, Corporate Knights Inc., a Canadian media company, and Innovest Strategic Value Advisors Inc. named FPL Group one of the Global 100 Most Sustainable Corporations in the World. And FPL Group was one of only two U.S. utility companies to make the list of 100.
• FPL Group’s leadership in addressing climate change was recognized for the third straight time as "best in class" by the Carbon Disclosure Project.
• FPL Group is the largest U.S. power company to have joined the World Wildlife Fund’s PowerSwitch® program with commitments to reduce greenhouse gas emissions through the use of more efficient electric generation.

Committed to Global Climate Change

In early 2007, FPL Group became a founding member of U.S. Climate Action Partnership (USCAP), a group of U.S. businesses and environmental organizations calling on the federal government to quickly enact mandatory policies to reduce carbon dioxide emissions in the United States.

In advocating for the immediate passage of federal and/or state legislation to slow, stop and ultimately reverse the growth of greenhouse gas emissions, FPL Group believes that to be effective, any program must:

• set a market price on carbon which will be reflected in the price of every good and service throughout the economy;
• apply throughout the economy, not just for reasons of fairness, but more importantly for effectiveness. Carbon is pervasive throughout the economy and programs that focus on just one sector, such as our own, will not effectively address the problem;
• protect import- and export- sensitive industries, otherwise production will simply flee offshore to locations that do not price carbon into their output;
• recycle the dollars that will be extracted from end consumers through higher prices back into their pockets, or we will do serious damage to the economy;

FPL Group believes that a market-based, economy-wide program that places a direct cost on carbon at its upstream source will most effectively achieve the desired environmental benefits with the least economic disruption. Our analysis has led us to conclude that the simplest, most effective way to do this is through a carbon fee. A carbon fee is administratively simple; it automatically becomes economy-wide; it is easy to recycle to consumers; and, crucially, it provides us in the industry with the price signals we need to make long term capital decisions – the very capital decisions that will ultimately determine whether or not we bring down our national emissions profile over time.

A moderate carbon fee, escalating steadily and predictably, and recycled directly back into the economy, will have only a modest drag on the economy, but it will over time induce massive change in our carbon emissions profile, especially when it is supported by adequate R&D. The same effect can be produced, though with greater complexity and less effectiveness, through a properly designed cap-and-trade system with a high percentage of allowances auctioned and a pre-determined safety valve built in. But a poorly designed scheme, or one that does not force a price on carbon throughout the economy, will not address the real environmental issue, and it will risk major harm to the economy.

The company has endorsed the Joint Statement of the Global Roundtable on Climate Change to address the risks and impacts while meeting energy, economic growth and sustainable development needs.