EX-99 2 exhibit99.htm EXHIBIT 99 Exhibit 99

Exhibit 99

FPL Group, Inc.
Corporate Communications Dept.
Media Line: (305) 552-3888
October 30, 2006

FOR IMMEDIATE RELEASE

 

FPL Group announces third quarter earnings

  • FPL Energy continues strong earnings growth trend
  • Florida Power & Light results benefit from continued customer growth
  • FPL Group increases 2007 EPS expectations to $3.35 to $3.45

 

JUNO BEACH, Fla. (Oct. 30, 2006) - FPL Group, Inc. (NYSE: FPL) today reported 2006 third quarter net income on a GAAP basis of $524 million, or $1.32 per share, compared with $339 million, or $0.87 per share, in the third quarter of 2005. FPL Group's net income for the third quarter of 2006 included a net after-tax gain of $74 million associated with the mark-to-market effect of non-qualifying hedges and $7 million of after-tax merger related costs. The results for last year's third quarter included a net after-tax loss of $56 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges and merger-related costs, FPL Group's earnings would have been $457 million, or $1.15 per share, for the third quarter of 2006, compared with $395 million, or $1.01 per share, in the third quarter of 2005.

FPL Group's management uses adjusted earnings internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and for the company's employee incentive compensation plan. FPL Group also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. FPL Group management believes that adjusted earnings provide a more meaningful representation of FPL Group's fundamental earnings power.

"FPL Group had very healthy third quarter results, once again driven by the strength of FPL Energy," said Lew Hay, chairman, president and chief executive officer of FPL Group. "FPL Group's adjusted results increased approximately 14 percent, with FPL Energy's adjusted results increasing 40 percent over the prior year quarter. Florida Power & Light posted solid results, although weather-related sales comparisons were unfavorable quarter over quarter.

"With three-quarters of the year now behind us, FPL Group remains on track to deliver at the upper end of its 2006 adjusted earnings expectations of $2.80-$2.90, including the $0.07 impact of storm cost disallowances earlier this year."

Florida Power & Light

Florida Power & Light Company, FPL Group's principal subsidiary, reported third quarter 2006 net income of $328 million or $0.82 per share, compared to $311 million or $0.80 per share for the prior-year quarter.

In the last 12 months, the average number of FPL accounts increased by 79,000, or 1.8 percent, which is below the average growth experienced in the last several years, and slightly below longer term historical levels. Retail sales of electricity were down 4.2 percent during the third quarter, which witnessed temperatures about normal but below the prior-year quarter. Weather-normalized usage per customer was down, largely due to the impact of higher retail prices, driven by fuel costs.

Operations and maintenance (O&M) expense were essentially flat compared to the prior-year quarter, although this trend is not expected to continue. Looking forward, the company anticipates continued increases in employee benefit costs, and distribution expenses and capital expenditures are also expected to increase as a result of the Storm SecureSM initiative, a ten-year program to harden FPL's infrastructure to be more resilient to hurricanes.

Depreciation and amortization expense decreased $49 million to $197 million for the third quarter of 2006, primarily driven by the extension of the useful lives on the generation fleet and the elimination of the nuclear decommissioning accrual, both of which were implemented as a result of last year's base rate stipulation and settlement agreement.

During the quarter, FPL announced plans to build an advanced technology coal power plant, comprised of two 980-megawatt generating units in Glades County, Florida to meet the growing demand for electricity in the state and help diversify its existing fuel supply. FPL plans to file a site certification application with the Florida Department of Environmental Protection by the end of 2006. Licensing is expected to take approximately 12 to 18 months. Construction of the new plant is expected to take five years with Unit 1 scheduled to become operational in 2012 and Unit 2 in 2013. Once complete, the facility will generate enough power for more than 650,000 homes. FPL expects the units to have emissions profiles better than current IGCC technology.

"FPL posted good results, despite weak revenue comparisons to the year-ago quarter, which were largely a function of weather," said Hay. "Customer growth continues to be strong, although it is slightly below the 10 to 15 year historical average. While the Florida economy appears to be cooling, it is still strong, as reflected in continued job and income growth. Housing starts have fallen significantly and we expect that the market will need to work off some excess capacity. Looking forward we see moderate customer growth and a return to positive usage growth in 2007."

FPL Energy

FPL Energy, the competitive energy subsidiary of FPL Group, reported third quarter 2006 net income on a GAAP basis of $215 million or $0.54 per share, compared to $44 million or $0.11 per share in the prior-year quarter. FPL Energy's net income for the third quarter of 2006 included a net after-tax gain of $74 million associated with the mark-to-market effect of non-qualifying hedges. The results for last year's third quarter included a net after-tax loss of $56 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges, third quarter 2006 adjusted earnings for FPL Energy were $141 million, or $0.35 per share, compared to $100 million, or $0.25 per share, in 2005.

FPL Energy's growth in adjusted earnings in the third quarter is due primarily to the addition of new wind projects and its 70 percent ownership interest in the Duane Arnold Nuclear Plant, together with good results from wholesale load following contracts and continued excellent performance in the merchant fleet. These favorable conditions were partially offset by increases in overhead costs to support the future growth of the business and by increased interest expense.

During the third quarter FPL Energy continued to make good progress selling forward the output from its power plants primarily for 2008. For 2007, FPL Energy now has more than 90 percent of its expected gross margin from its wholesale generation fleet protected against fuel and power market volatility. In addition, as of Oct. 13, 2006, FPL Energy has approximately 80 percent of its 2008 expected gross margin from its wholesale generation fleet protected against fuel and power market volatility.

FPL Energy's 2006 wind program continues to make excellent progress with approximately 760 megawatts of new wind projects - excluding acquisitions - either already completed or expected to reach commercial operation by the end of the year. In the last twelve months, FPL Energy has added 932 megawatts of new wind to its portfolio.

"FPL Energy once again had an exceptionally strong quarter which is reflected by its double digit growth in adjusted earnings," said Hay. "Although all areas of the business are performing well, and market conditions remain favorable, we were particularly pleased with the comparative performance of the existing merchant portfolio, which had a strong third quarter last year but did even better this quarter."

Corporate and Other

Corporate and Other negatively impacted third quarter 2006 net income by $19 million, or $0.04 per share, primarily driven by interest and merger-related expenses partially offset by the impact of certain state tax benefits.

Outlook

"The strong performance through three-quarters of the year at FPL Energy positions us well to deliver results at FPL Group at the high end of our previously announced range for 2006 adjusted earnings per share of $2.80-$2.90, including the $0.07 negative impact from the storm cost disallowance" said Hay. "For 2007, our business plans are now sufficiently far along for us to share adjusted earnings expectations in a range of $3.35 to $3.45. For 2008, our prospects are also strong and we presently see a range of $3.60 to $3.80 per share."

As always, FPL Group earnings expectations assume normal weather and exclude the effect of adopting new accounting standards and the mark-to-market effect of non-qualifying hedges, none of which can be determined at this time.

"I remain very confident in FPL Group's future growth prospects. FPL is one of the premier electric franchises in the country with strong customer growth. FPL Energy is one of the best performing competitive energy companies in the industry with outstanding growth prospects. In addition, FPL Group has a strong balance sheet, affording us the opportunity to continue to invest in our businesses," Hay added.

 

As previously announced, FPL Group's third quarter earnings conference call is scheduled for 9 a.m. ET on Monday, Oct. 30, 2006. The webcast is available on FPL Group's website by accessing the following link, http://www.FPLGroup.com/investor/contents/investor_index.shtml. The slides accompanying the presentation may be downloaded at www.FPLGroup.com beginning at 7:30 a.m. ET today. For persons unable to listen to the live webcast, a replay will be available for 90 days by accessing the same link as listed above.

This press release should be read in conjunction with the attached unaudited financial information.

 

Profile

FPL Group, with annual revenues of more than $11 billion, is nationally known as a high-quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4.4 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.FPLGroup.com, www.FPL.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, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby providing cautionary statements identifying important factors that could cause FPL Group's or FPL'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 FPL 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 or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) 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 FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.

Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL 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 FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:


FPL Group and FPL are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions, including initiatives regarding deregulation and restructuring of the energy industry.  FPL 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 FPL.

  • FPL Group and FPL are subject to complex laws and regulations, and to changes in laws or regulations, including the Public Utility Regulatory Policies Act of 1978, as amended, the Public Utility Holding Company Act of 2005, the Federal Power Act, the Atomic Energy Act of 1954, as amended, the Energy Policy Act of 2005 (2005 Energy Act) and certain sections of the Florida statutes relating to public utilities, changing governmental policies and regulatory actions, including those of the Federal Energy Regulatory Commission (FERC), the Florida Public Service Commission (FPSC) and the legislatures and utility commissions of other states in which FPL Group has operations, and the Nuclear Regulatory Commission (NRC), with respect to, among other things, allowed rates of return, industry and rate structure, operation of nuclear power facilities, operation and construction of plant facilities, operation and construction of transmission facilities, acquisition, disposal, depreciation and amortization of assets and facilities, recovery of fuel and purchased power costs, decommissioning costs, return on common equity and equity ratio limits, and present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs).  The FPSC has the authority to disallow recovery by FPL of any and all costs that it considers excessive or imprudently incurred.  The regulatory process generally restricts FPL's ability to grow earnings and does not provide any assurance as to achievement of earnings levels.

  • FPL Group and FPL are subject to extensive federal, state and local environmental statutes as well as the effect of changes in or additions to applicable statutes, rules and regulations relating to air quality, water quality, waste management, wildlife mortality, natural resources and health and safety that could, among other things, restrict or limit the output of certain facilities or the use of certain fuels required for the production of electricity and/or require additional pollution control equipment and otherwise increase costs.  There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future.

  • FPL Group and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives regarding deregulation, regulation or restructuring of the energy industry, including deregulation or restructuring of the production and sale of electricity.  FPL Group and its subsidiaries will need to adapt to these changes and may face increasing competitive pressure.

  • FPL Group's and FPL's results of operations could be affected by FPL's ability to renegotiate franchise agreements with municipalities and counties in Florida.

The operation of power generation facilities, including nuclear facilities, involves significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.

  • The operation of power generation facilities involves many risks, including start up risks, breakdown or failure of equipment, transmission lines or pipelines, use of new technology, the dependence on a specific fuel source, including the supply and transportation of fuel, or the impact of unusual or adverse weather conditions (including natural disasters such as hurricanes), as well as the risk of performance below expected or contracted levels of output or efficiency.  This could result in lost revenues and/or increased expenses, including the requirement to purchase power in the market at potentially higher prices to meet its contractual obligations.  Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses, including the cost of replacement power.  In addition to these risks, FPL Group's and FPL's nuclear units face certain risks that are unique to the nuclear industry including the ability to store and/or dispose of spent nuclear fuel, the potential payment of significant retrospective insurance premiums, as well as additional regulatory actions up to and including shutdown of the units stemming from public safety concerns, whether at FPL Group's and FPL's plants, or at the plants of other nuclear operators.  Breakdown or failure of an operating facility of FPL Energy, LLC (FPL Energy) may prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of the agreement or incurring a liability for liquidated damages.

The construction of, and capital improvements to, power generation facilities involve substantial risks.  Should construction or capital improvement efforts be unsuccessful, the results of operations and financial condition of FPL Group and FPL could be adversely affected.

  • FPL Group's and FPL's ability to successfully and timely complete their power generation facilities currently under construction, those projects yet to begin construction or capital improvements to existing facilities within established budgets is contingent upon many variables and subject to substantial risks.  Should any such efforts be unsuccessful, FPL Group and FPL could be subject to additional costs, termination payments under committed contracts, and/or the write-off of their investment in the project or improvement.

The use of derivative contracts by FPL Group and FPL in the normal course of business could result in financial losses that negatively impact the results of operations of FPL Group and FPL.

  • FPL Group and FPL use derivative instruments, such as swaps, options and forwards to manage their commodity and financial market risks, and to a lesser extent, engage in limited trading activities.  FPL Group could recognize financial losses as a result of volatility in the market values of these contracts, or if a counterparty fails to perform.  In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management's judgment or use of estimates.  As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts.  In addition, FPL's use of such instruments could be subject to prudency challenges and if found imprudent, cost recovery could be disallowed by the FPSC.

FPL Group's competitive energy business is subject to risks, many of which are beyond the control of FPL Group, that may reduce the revenues and adversely impact the results of operations and financial condition of FPL Group.

  • There are other risks associated with FPL Group's competitive energy business.  In addition to risks discussed elsewhere, risk factors specifically affecting FPL Energy's success in competitive wholesale markets include the ability to efficiently develop and operate generating assets, the successful and timely completion of project restructuring activities, maintenance of the qualifying facility status of certain projects, the price and supply of fuel (including transportation), transmission constraints, competition from new sources of generation, excess generation capacity and demand for power.  There can be significant volatility in market prices for fuel and electricity, and there are other financial, counterparty and market risks that are beyond the control of FPL Energy.  FPL Energy's inability or failure to effectively hedge its assets or positions against changes in commodity prices, interest rates, counterparty credit risk or other risk measures could significantly impair FPL Group's future financial results.  In keeping with industry trends, a portion of FPL Energy's power generation facilities operate wholly or partially without long-term power purchase agreements.  As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may affect the volatility of FPL Group's financial results.  In addition, FPL Energy's business depends upon transmission facilities owned and operated by others; if transmission is disrupted or capacity is inadequate or unavailable, FPL Energy's ability to sell and deliver its wholesale power may be limited.

FPL Group's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including the effect of increased competition for acquisitions resulting from the consolidation of the power industry.

  • FPL Group is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry, in general, as well as the passage of the 2005 Energy Act. In addition, FPL Group may be unable to identify attractive acquisition opportunities at favorable prices and to successfully and timely complete and integrate them.

 

Because FPL Group and FPL rely on access to capital markets, the inability to maintain current credit ratings and access capital markets on favorable terms may limit the ability of FPL Group and FPL to grow their businesses and would likely increase interest costs.

  • FPL Group and FPL rely on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows.  The inability of FPL Group, FPL Group Capital Inc and FPL to maintain their current credit ratings could affect their ability to raise capital on favorable terms, particularly during times of uncertainty in the capital markets, which, in turn, could impact FPL Group's and FPL's ability to grow their businesses and would likely increase their interest costs.

Customer growth in FPL's service area affects FPL Group's results of operations.

  • FPL Group'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 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 FPL.

Weather affects FPL Group's and FPL's results of operations.

  • FPL Group's and FPL's results of operations are affected by changes in the weather.  Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities, and can affect the production of electricity at wind and hydro-powered facilities.  FPL Group's and FPL's results of operations can be affected by the impact of severe weather which can be destructive, causing outages and/or property damage, may affect fuel supply, and could require additional costs to be incurred.  At FPL, recovery of these costs is subject to FPSC approval.

FPL Group and FPL 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.

  • FPL Group and FPL are subject to costs and other effects of legal and administrative proceedings, settlements, investigations and claims, as well as the effect of new, or changes in, 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 may impact the operations of FPL Group and FPL in unpredictable ways.

  • FPL Group and FPL are subject to direct and indirect effects of terrorist threats and activities.  Generation and transmission facilities, in general, have been identified as potential targets.  The effects of terrorist threats and activities include, among other things, terrorist actions or responses to such actions or threats, the inability to generate, purchase or transmit power, the risk of a significant slowdown in growth or a decline in the U.S. economy, delay in economic recovery in the U.S., and the increased cost and adequacy of security and insurance.

The ability of FPL Group and FPL 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's and FPL's ability to obtain insurance, and the cost of and coverage provided by such insurance, could be affected by national, state or local events as well as company-specific events.

FPL Group and FPL are subject to employee workforce factors that could affect the businesses and financial condition of FPL Group and FPL.

  • FPL Group and FPL are subject to employee workforce factors, including loss or retirement of key executives, availability of qualified personnel, collective bargaining agreements with union employees and work stoppage that could affect the businesses and financial condition of FPL Group and FPL.

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

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Three Months Ended September 30, 2006

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 3,513

 

$ 1,143

 

$ 38

 

$ 4,694

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

2,080

 

559

 

17

 

2,656

 

Other operations and maintenance

 

335

 

157

 

14

 

506

 

Disallowed storm costs

 

-

 

-

 

-

 

-

 

Merger-related

 

-

 

-

 

11

 

11

 

Amortization of storm reserve deficiency

 

44

 

-

 

-

 

44

 

Depreciation and amortization

 

197

 

94

 

6

 

297

 

Taxes other than income taxes

 

292

 

20

 

1

 

313

   

Total operating expenses

 

2,948

 

830

 

49

 

3,827

                     

Operating Income (Loss)

 

565

 

313

 

(11)

 

867

Other Income (Deductions)

               
 

Interest charges

 

(69)

 

(69)

 

(41)

 

(179)

 

Equity in earnings of equity method investees

 

-

 

42

 

-

 

42

 

Gains (losses) on disposal of equity method investees

               
   

and leveraged leases - net

 

-

 

-

 

-

 

-

 

Allowance for equity funds used during construction

 

6

 

-

 

-

 

6

 

Interest income

 

2

 

6

 

2

 

10

 

Other - net

 

3

 

3

 

1

 

7

   

Total other income (deductions) - net

 

(58)

 

(18)

 

(38)

 

(114)

                     

Income (Loss) Before Income Taxes

 

507

 

295

 

(49)

 

753

                     

Income Tax Expense (Benefit)

 

179

 

80

 

(30)

 

229

                     

Net Income (Loss)

 

$ 328

 

$ 215

 

$ (19)

 

$ 524

                     
                     

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

           
                     

Net Income (Loss)

 

$ 328

 

$ 215

 

$ (19)

 

$ 524

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

7

 

7

 

Net unrealized mark-to-market (gains) losses associated

               
   

with non-qualifying hedges

 

-

 

(74)

 

-

 

(74)

                     

Adjusted Earnings (Loss)

 

$ 328

 

$ 141

 

$ (12)

 

$ 457

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 0.82

 

$ 0.54

 

$ (0.04)

 

$ 1.32

Adjusted Earnings (Loss) Per Share

 

$ 0.82

 

$ 0.35

 

$ (0.02)

 

$ 1.15

Weighted-average shares outstanding (assuming dilution)

         

398

                     
                     

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Three Months Ended September 30, 2005

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 2,891

 

$ 592

 

$ 21

 

$ 3,504

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

1,460

 

361

 

5

 

1,826

 

Other operations and maintenance

 

334

 

125

 

10

 

469

 

Disallowed storm costs

 

-

 

-

 

-

 

-

 

Merger-related

 

-

 

-

 

-

 

-

 

Amortization of storm reserve deficiency

 

56

 

-

 

-

 

56

 

Depreciation and amortization

 

246

 

80

 

5

 

331

 

Taxes other than income taxes

 

244

 

17

 

2

 

263

   

Total operating expenses

 

2,340

 

583

 

22

 

2,945

                     

Operating Income (Loss)

 

551

 

9

 

(1)

 

559

                     

Other Income (Deductions)

               
 

Interest charges

 

(58)

 

(56)

 

(36)

 

(150)

 

Equity in earnings of equity method investees

 

-

 

59

 

-

 

59

 

Gains (losses) on disposal of equity method investees

               
   

and leveraged leases - net

 

-

 

-

 

10

 

10

 

Allowance for equity funds used during construction

 

2

 

-

 

-

 

2

 

Interest income

 

(2)

 

8

 

10

 

16

 

Other - net

 

1

 

-

 

(5)

 

(4)

   

Total other income (deductions) - net

 

(57)

 

11

 

(21)

 

(67)

                     

Income (Loss) Before Income Taxes

 

494

 

20

 

(22)

 

492

                     

Income Tax Expense (Benefit)

 

183

 

(24)

 

(6)

 

153

                     

Net Income (Loss)

 

$ 311

 

$ 44

 

$ (16)

 

$ 339

                     
                     

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

           
                     

Net Income (Loss)

 

$ 311

 

$ 44

 

$ (16)

 

$ 339

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

-

 

-

 

Net unrealized mark-to-market (gains) losses associated

               
   

with non-qualifying hedges

 

-

 

56

 

-

 

56

                     

Adjusted Earnings (Loss)

 

$ 311

 

$ 100

 

$ (16)

 

$ 395

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 0.80

 

$ 0.11

 

$ (0.04)

 

$ 0.87

Adjusted Earnings (Loss) Per Share

 

$ 0.80

 

$ 0.25

 

$ (0.04)

 

$ 1.01

Weighted-average shares outstanding (assuming dilution)

         

390

                     
                     

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Nine Months Ended September 30, 2006

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 9,096

 

$ 2,866

 

$ 125

 

$ 12,087

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

5,369

 

1,451

 

63

 

6,883

 

Other operations and maintenance

 

1,024

 

432

 

45

 

1,501

 

Disallowed storm costs

 

54

 

-

 

-

 

54

 

Merger-related

 

-

 

-

 

21

 

21

 

Amortization of storm reserve deficiency

 

114

 

-

 

-

 

114

 

Depreciation and amortization

 

589

 

272

 

17

 

878

 

Taxes other than income taxes

 

796

 

63

 

4

 

863

   

Total operating expenses

 

7,946

 

2,218

 

150

 

10,314

                     

Operating Income (Loss)

 

1,150

 

648

 

(25)

 

1,773

Other Income (Deductions)

               
 

Interest charges

 

(212)

 

(197)

 

(117)

 

(526)

 

Equity in earnings of equity method investees

 

-

 

83

 

-

 

83

 

Gains (losses) on disposal of equity method investees

               
   

and leveraged leases - net

 

-

 

-

 

-

 

-

 

Allowance for equity funds used during construction

 

15

 

-

 

-

 

15

 

Interest income

 

15

 

18

 

5

 

38

 

Other - net

 

(3)

 

6

 

4

 

7

   

Total other income (deductions) - net

 

(185)

 

(90)

 

(108)

 

(383)

                     

Income (Loss) Before Income Taxes

 

965

 

558

 

(133)

 

1,390

                     

Income Tax Expense (Benefit)

 

333

 

100

 

(53)

 

380

                     

Net Income (Loss)

 

$ 632

 

$ 458

 

$ (80)

 

$ 1,010

                     
                     

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

           
                     

Net Income (Loss)

 

$ 632

 

$ 458

 

$ (80)

 

$ 1,010

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

13

 

13

 

Net unrealized mark-to-market (gains) losses associated

               
   

with non-qualifying hedges

 

-

 

(77)

 

-

 

(77)

                     

Adjusted Earnings (Loss)

 

$ 632

 

$ 381

 

$ (67)

 

$ 946

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 1.60

 

$ 1.16

 

$ (0.21)

 

$ 2.55

Adjusted Earnings (Loss) Per Share

 

$ 1.60

 

$ 0.97

 

$ (0.18)

 

$ 2.39

Weighted-average shares outstanding (assuming dilution)

             

396

                     
                     

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)

Nine Months Ended September 30, 2005

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 7,230

 

$ 1,384

 

$ 68

 

$ 8,682

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

3,686

 

755

 

17

 

4,458

 

Other operations and maintenance

 

960

 

329

 

32

 

1,321

 

Disallowed storm costs

 

-

 

-

 

-

 

-

 

Merger-related

 

-

 

-

 

-

 

-

 

Amortization of storm reserve deficiency

 

119

 

-

 

-

 

119

 

Depreciation and amortization

 

708

 

229

 

16

 

953

 

Taxes other than income taxes

 

663

 

53

 

3

 

719

   

Total operating expenses

 

6,136

 

1,366

 

68

 

7,570

                     

Operating Income (Loss)

 

1,094

 

18

 

-

 

1,112

                     

Other Income (Deductions)

               
 

Interest charges

 

(157)

 

(165)

 

(106)

 

(428)

 

Equity in earnings of equity method investees

 

-

 

105

 

-

 

105

 

Gains (losses) on disposal of equity method investees

               
   

and leveraged leases - net

 

-

 

16

 

9

 

25

 

Allowance for equity funds used during construction

 

25

 

-

 

-

 

25

 

Interest income

 

2

 

23

 

23

 

48

 

Other - net

 

1

 

22

 

(2)

 

21

   

Total other income (deductions) - net

 

(129)

 

1

 

(76)

 

(204)

                     

Income (Loss) Before Income Taxes

 

965

 

19

 

(76)

 

908

                     

Income Tax Expense (Benefit)

 

341

 

(83)

 

(29)

 

229

                     

Net Income (Loss)

 

$ 624

 

$ 102

 

$ (47)

 

$ 679

                     
                     
                     

Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):

           
                     

Net Income (Loss)

 

$ 624

 

$ 102

 

$ (47)

 

$ 679

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

-

 

-

 

Net unrealized mark-to-market (gains) losses associated

               
   

with non-qualifying hedges

 

-

 

139

 

-

 

139

                     

Adjusted Earnings (Loss)

 

$ 624

 

$ 241

 

$ (47)

 

$ 818

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 1.62

 

$ 0.26

 

$ (0.11)

 

$ 1.77

Adjusted Earnings (Loss) Per Share

 

$ 1.62

 

$ 0.62

 

$ (0.11)

 

$ 2.13

Weighted-average shares outstanding (assuming dilution)

             

384

                     
                     

FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Preliminary Condensed Consolidated Balance Sheets
(millions)
(unaudited)

September 30, 2006

 

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Property, Plant and Equipment

Electric utility plant in service and other property

$ 23,836

 

$ 9,525

 

$ 325

 

$ 33,686

Nuclear fuel

 

421

 

248

 

-

 

669

Construction work in progress

 

1,034

 

301

 

10

 

1,345

Less accumulated depreciation and amortization

(9,787)

 

(1,542)

 

(122)

 

(11,451)

 

Total property, plant and equipment - net

15,504

 

8,532

 

213

 

24,249

Current Assets

Cash and cash equivalents

65

63

31

159

Customer receivables, net of allowances

1,078

444

17

1,539

Other receivables, net of allowances

116

213

(6)

323

Material, supplies and fossil fuel inventory - at avg. cost

554

207

11

772

Regulatory Assets:

Deferred clause and franchise expenses

454

-

-

454

Storm reserve deficiency

158

-

-

158

Derivatives

783

-

-

783

Other

6

-

-

6

Derivatives

13

267

(1)

279

Other

204

201

(44)

361

 

Total current assets

 

3,431

 

1,395

 

8

 

4,834

                 

Other Assets

               

Nuclear decommissioning reserve funds

 

2,187

 

535

 

(1)

 

2,721

Other investments

 

8

 

338

 

140

 

486

Regulatory assets:

               

Storm reserve deficiency

 

782

 

-

 

-

 

782

Deferred clause expenses

 

62

 

-

 

-

 

62

Unamortized loss on reacquired debt

 

40

 

-

 

-

 

40

Derivatives

 

95

 

-

 

-

 

95

Other

 

53

 

-

 

-

 

53

Other

 

988

 

430

 

129

 

1,547

Total other assets

4,215

1,303

268

5,786

Total Assets

$ 23,150

$ 11,230

$ 489

$ 34,869

Capitalization

Common stock

$ 1,373

$ -

$ (1,369)

$ 4

Additional paid-in capital

4,319

5,209

(5,014)

4,514

Retained earnings

1,678

1,038

2,356

5,072

Accumulated other comprehensive income (loss)

-

(9)

(1)

(10)

Total common shareholders' equity

7,370

6,238

(4,028)

9,580

Long-term debt

4,213

2,280

3,138

9,631

Total capitalization

11,583

8,518

(890)

19,211

Current Liabilities

Commercial paper

578

-

401

979

Current maturities of long-term debt

-

220

1,071

1,291

Accounts payable

764

295

6

1,065

Customer deposits

467

10

1

478

Margin cash deposits

-

31

-

31

Accrued interest and taxes

660

70

(206)

524

Regulatory liabilities:

Deferred clause and franchise revenues

37

-

-

37

Derivatives

-

-

-

-

Derivatives

665

368

3

1,036

Other

528

242

(48)

722

Total current liabilities

3,699

1,236

1,228

6,163

Other Liabilities and Deferred Credits

Asset retirement obligations

1,534

354

(1)

1,887

Accumulated deferred income taxes

2,517

768

(46)

3,239

Regulatory liabilities:

Accrued asset removal costs

2,021

-

-

2,021

Asset retirement obligation regulatory expense difference

828

-

-

828

Other

134

-

-

134

Other

834

354

198

1,386

Total other liabilities and deferred credits

7,868

1,476

151

9,495

Commitments and Contingencies

Total Capitalization and Liabilities

$ 23,150

$ 11,230

$ 489

$ 34,869

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)

December 31, 2005

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Property, Plant and Equipment

Electric utility plant in service and other property

$ 23,251

$ 8,312

$ 323

$ 31,886

Nuclear fuel

380

141

(1)

520

Construction work in progress

776

158

11

945

Less accumulated depreciation and amortization

(9,530)

(1,253)

(105)

(10,888)

Total property, plant and equipment - net

14,877

7,358

228

22,463

Current Assets

Cash and cash equivalents

56

83

391

530

Customer receivables, net of allowances

653

388

23

1,064

Other receivables, net of allowances

313

145

(92)

366

Material, supplies and fossil fuel inventory - at avg. cost

449

108

10

567

Regulatory Assets:

Deferred clause and franchise expenses

795

-

-

795

Storm reserve deficiency

156

-

-

156

Derivatives

-

-

-

-

Other

7

-

-

7

Derivatives

828

245

1

1,074

Other

212

113

103

428

Total current assets

3,469

1,082

436

4,987

Other Assets

Nuclear decommissioning reserve funds

2,083

318

-

2,401

Other investments

8

335

124

467

Regulatory assets:

Storm reserve deficiency

957

-

-

957

Deferred clause expenses

307

-

-

307

Unamortized loss on reacquired debt

42

-

-

42

Derivatives

-

-

-

-

Other

37

-

-

37

Other

946

315

82

1,343

Total other assets

4,380

968

206

5,554

Total Assets

$ 22,726

$ 9,408

$ 870

$ 33,004

Capitalization

Common stock

$ 1,373

$ -

$ (1,369)

$ 4

Additional paid-in capital

4,318

4,308

(4,444)

4,182

Retained earnings

1,046

580

2,880

4,506

Accumulated other comprehensive income (loss)

-

(192)

(1)

(193)

Total common shareholders' equity

6,737

4,696

(2,934)

8,499

Long-term debt

3,271

2,264

2,504

8,039

Total capitalization

10,008

6,960

(430)

16,538

Current Liabilities

Commercial paper

1,159

-

-

1,159

Notes payable

-

-

-

-

Current maturities of long-term debt

135

176

1,093

1,404

Accounts payable

863

361

21

1,245

Customer deposits

423

10

-

433

Margin cash deposits

382

11

-

393

Accrued interest and taxes

174

41

38

253

Regulatory liabilities:

Deferred clause and franchise revenues

32

-

-

32

Derivatives

757

-

-

757

Derivatives

-

449

14

463

Other

929

193

6

1,128

Total current liabilities

4,854

1,241

1,172

7,267

Other Liabilities and Deferred Credits

Asset retirement obligations

1,474

211

-

1,685

Accumulated deferred income taxes

2,647

419

(51)

3,015

Regulatory liabilities:

Accrued asset removal costs

2,033

-

-

2,033

Asset retirement obligation regulatory expense difference

786

-

-

786

Other

152

-

-

152

Other

772

577

179

1,528

Total other liabilities and deferred credits

7,864

1,207

128

9,199

Commitments and Contingencies

Total Capitalization and Liabilities

$ 22,726

$ 9,408

$ 870

$ 33,004

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)

Nine Months Ended September 30, 2006

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Cash Flows From Operating Activities

Net income (loss)

$ 632

$ 458

$ (80)

$ 1,010

Adjustments to reconcile net income (loss) to net

cash provided by (used in) operating activities:

Depreciation and amortization

557

272

17

846

Nuclear fuel amortization

68

32

-

100

Recoverable storm-related costs of FPL

(326)

-

-

(326)

Amortization of storm reserve deficiency

114

-

-

114

Unrealized (gains) losses on marked to market energy contracts

-

(142)

-

(142)

Deferred income taxes and related regulatory credit

36

197

100

333

Deferred pension cost

(59)

-

(13)

(72)

Cost recovery clauses and franchise fees

592

-

-

592

Change in prepaid option premiums

(87)

(6)

-

(93)

Equity in earnings of equity method investees

-

(83)

-

(83)

Distribution of earnings from equity method investees

-

57

-

57

Changes in operating assets and liabilities:

Customer receivables

(425)

(55)

6

(474)

Other receivables

20

53

(6)

67

Material, supplies and fossil fuel inventory

(106)

(86)

-

(192)

Other current assets

(15)

3

5

(7)

Accounts payable

(81)

(55)

(15)

(151)

Customer deposits

44

1

(1)

44

Margin cash deposits

(430)

20

(1)

(411)

Income taxes

447

(104)

(332)

11

Interest and other taxes

234

16

7

257

Other current liabilities

(19)

(5)

(3)

(27)

Other liabilities

-

(19)

19

-

Other - net

(3)

(101)

71

(33)

Net cash provided by (used in) operating activities

1,193

453

(226)

1,420

Cash Flows From Investing Activities

Capital expenditures of FPL

(1,303)

-

-

(1,303)

Independent power investments

-

(1,375)

-

(1,375)

Nuclear fuel purchases

(54)

(87)

-

(141)

Sale of independent power investments

-

-

-

-

Loan repayments and capital distributions from equity method investees

-

-

-

Proceeds from sale of securities in nuclear decommissioning and storm funds

2,203

360

-

2,563

Purchases of securities in nuclear decommissioning and storm funds

(2,251)

(370)

-

(2,621)

Proceeds from sale of other securities

-

-

57

57

Purchases of other securities

-

-

(74)

(74)

Funding of secured loan

-

-

-

-

Proceeds from termination of leveraged leases

-

-

-

-

Other - net

-

8

(20)

(12)

Net cash provided by (used in) investing activities

(1,405)

1,464)

(37)

(2,906)

Cash Flows From Financing Activities

Issuances of long-term debt

938

204

1,680

2,822

Retirements of long-term debt

(135)

(144)

(1,100)

(1,379)

Proceeds from purchased Corporate Units

-

-

210

210

Payments to terminate Corporate Units

-

-

(258)

(258)

Retirements of preferred stock

-

-

-

-

Net change in short-term debt

(581)

-

401

(180)

Issuances of common stock

-

-

312

312

Dividends on common stock

-

-

(445)

(445)

Dividends & capital distributions from (to) FPL Group - net

-

900

(900)

-

Other - net

(1)

31

3

33

Net cash provided by (used in) financing activities

221

991

(97)

1,115

Net increase (decrease) in cash and cash equivalents

9

(20)

(360)

(371)

Cash and cash equivalents at beginning of period

56

83

391

530

Cash and cash equivalents at end of period

$ 65

$ 63

$ 31

$ 159

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)

Nine Months Ended September 30, 2005

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Cash Flows From Operating Activities

Net income (loss)

$ 624

$ 102

$ (47)

$ 679

Adjustments to reconcile net income (loss) to net

cash provided by (used in) operating activities:

Depreciation and amortization

676

229

16

921

Nuclear fuel amortization

56

19

-

75

Recoverable storm-related costs of FPL

(317)

-

-

(317)

Amortization of storm reserve deficiency

119

-

119

Unrealized (gains) losses on marked to market energy contracts

-

240

-

240

Deferred income taxes and related regulatory credit

343

(46)

(15)

282

Deferred pension cost

(56)

-

(14)

(70)

Cost recovery clauses and franchise fees

(546)

-

-

(546)

Change in prepaid option premiums

4

6

-

10

Equity in earnings of equity method investees

-

(105)

-

(105)

Distribution of earnings from equity method investees

-

17

-

17

Changes in operating assets and liabilities:

Customer receivables

(269)

(158)

(2)

(429)

Other receivables

(9)

(13)

(19)

(41)

Material, supplies and fossil fuel inventory

(59)

(14)

-

(73)

Other current assets

(18)

(22)

5

(35)

Accounts payable

399

132

1

532

Customer deposits

23

1

-

24

Margin cash deposits

1,010

39

-

1,049

Income taxes

45

(38)

(49)

(42)

Interest and other taxes

217

11

16

244

Other current liabilities

(47)

(68)

11

(104)

Other liabilities

42

(26)

(29)

(13)

Other - net

(5)

69

35

99

Net cash provided by (used in) operating activities

2,232

375

(91)

2,516

Cash Flows From Investing Activities

Capital expenditures of FPL

(1,148)

-

-

(1,148)

Independent power investments

-

(668)

-

(668)

Nuclear fuel purchases

(66)

(3)

-

(69)

Sale of independent power investments

-

16

-

16

Loan repayments and capital distributions from equity method investees

-

126

-

126

Proceeds from sale of securities in nuclear decommissioning and storm funds

1,926

52

-

1,978

Purchases of securities in nuclear decommissioning and storm funds

(2,023)

(68)

-

(2,091)

Proceeds from sale of other securities

80

-

-

80

Purchases of other securities

(91)

-

-

(91)

Funding of secured loan

-

-

(43)

(43)

Proceeds from termination of leveraged lease

-

-

43

43

Other - net

9

12

(19)

2

Net cash provided by (used in) investing activities

(1,313)

(533)

(19)

(1,865)

Cash Flows From Financing Activities

Issuances of long-term debt

588

505

-

1,093

Retirements of long-term debt

-

(90)

(605)

(695)

Proceeds from purchased Corporate Units

-

-

-

-

Payments to terminate Corporate Units

-

-

-

-

Retirements of preferred stock

(25)

-

20

(5)

Net change in short-term debt

(441)

-

26

(415)

Issuances of common stock

-

-

633

633

Dividends on common stock

-

-

(407)

(407)

Dividends & capital distributions from (to) FPL Group - net

-

(275)

275

-

Other - net

(161)

31

152

22

Net cash provided by (used in) financing activities

(39)

171

94

226

Net increase (decrease) in cash and cash equivalents

880

13

(16)

877

Cash and cash equivalents at beginning of period

65

92

68

225

Cash and cash equivalents at end of period

$ 945

$ 105

$ 52

$ 1,102

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

 

 

FPL Group, Inc.
Earnings Per Share Summary
(assuming dilution)
(unaudited)

Three Months Ended September 30,

2006

2005

Florida Power & Light Company

$ 0.82

$ 0.80

FPL Energy, LLC

0.54

0.11

Corporate and Other

(0.04)

(0.04)

Earnings Per Share

$ 1.32

$ 0.87

Reconciliation of Earnings Per Share to Adjusted Earnings Per Share:

Earnings Per Share

$ 1.32

$ 0.87

Merger - related costs

0.02

-

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges,

primarily FPL Energy

(0.19)

0.14

Adjusted Earnings Per Share

$ 1.15

$ 1.01

Nine Months Ended September 30,

2006

2005

Florida Power & Light Company

$ 1.60

$ 1.62

FPL Energy, LLC

1.16

0.26

Corporate and Other

(0.21)

(0.11)

Earnings Per Share

$ 2.55

$ 1.77

Reconciliation of Earnings Per Share to Adjusted Earnings Per Share:

Earnings Per Share

$ 2.55

$ 1.77

Merger - related costs

0.03

-

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges,

primarily FPL Energy

(0.19)

0.36

Adjusted Earnings Per Share

$ 2.39

$ 2.13

 

 

FPL Group, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Year-To-Date

FPL Group - 2005 Earnings Per Share

$ 0.36

$ 0.52

$ 0.87

$ 1.77

Florida Power & Light - 2005 Earnings Per Share

0.30

0.52

0.80

1.62

Customer growth

0.03

0.03

0.03

0.09

Usage due to weather

(0.01)

0.06

(0.07)

(0.01)

Underlying usage growth and price mix

-

-

(0.03)

(0.04)

O&M expense

(0.02)

(0.05)

-

(0.06)

Depreciation expense

0.06

0.06

0.08

0.19

Storm disallowance

-

(0.07)

-

(0.07)

AFUDC

(0.02)

(0.02)

0.01

(0.03)

Interest expense (gross)

(0.03)

(0.03)

(0.02)

(0.08)

Share dilution

(0.01)

(0.01)

(0.02)

(0.05)

Other

0.01

(0.03)

0.04

0.04

Florida Power & Light - 2006 Earnings Per Share

0.31

0.46

0.82

1.60

FPL Energy - 2005 Earnings Per Share

0.10

0.05

0.11

0.26

New investments

0.05

0.07

0.07

0.19

Existing assets

0.16

0.03

0.03

0.22

Asset optimization and trading

-

0.02

0.03

0.05

Restructurings activities

0.03)

(0.01)

-

(0.04)

Non-qualifying hedges impact

0.14

0.09

0.33

0.55

Share dilution

-

-

-

(0.01)

Other, including interest expense

(0.04)

(0.02)

(0.03)

(0.06)

FPL Energy - 2006 Earnings Per Share

0.38

0.23

0.54

1.16

Corporate and Other - 2005 Earnings Per Share

(0.04)

(0.05)

(0.04)

(0.11)

FPL FiberNet operations

0.01

-

-

-

Merger - related costs

(0.01)

(0.01)

(0.02)

(0.03)

Share dilution

-

-

-

0.01

Other, including interest expense

(0.02)

(0.03)

0.02

(0.08)

Corporate and Other - 2006 Earnings Per Share

(0.06)

(0.09)

(0.04)

(0.21)

FPL Group - 2006 Earnings Per Share

$ 0.63

$ 0.60

$ 1.32

$ 2.55

 

 

FPL Group, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)

September 30, 2006

Per Books

Adjusted 1

Long-term debt, including current maturities and

commercial paper

Junior Subordinated Debentures2

$ 1,009

$ 350

Project debt:

Natural gas-fired assets

353

Wind assets

1,433

Debt with partial corporate support:

Natural gas-fired assets

351

Other long-term debt, including current maturities and

commercial paper

8,755

$ 8,755

Total debt

11,901

9,105

Junior Subordinated Debentures2

1,009

Common shareholders' equity

9,580

9,583

Total capitalization, including debt due within one year

$ 21,481

$ 19,697

Debt ratio

55%

46%

December 31, 2005

Per Books

Adjusted 1

Long-term debt, including current maturities and

commercial paper

Equity-linked debt securities

$ 506

Junior Subordinated Debentures2

309

Project debt:

Natural gas-fired assets

393

Wind assets

1,320

Debt with partial corporate support:

Natural gas-fired assets

358

Other long-term debt, including current maturities and

commercial paper

7,716

$ 7,716

Total debt and preferred stock

10,602

7,716

Junior Subordinated Debentures2

309

Common shareholders' equity

8,499

8,499

Equity-linked debt securities

506

Total capitalization, including debt due within one year

$ 19,101

$ 17,030

Debt ratio

56%

45%

1 Ratios exclude impact of imputed debt for purchase power obligations

2 Adjusted to reflect preferred stock characteristics of these securities (preferred trust securities)

 

 

FPL Group, Inc.
Commercial Paper and Current Maturities
of Long-term Debt Schedule as of September 30, 2006
(unaudited)

Type of Debt

Interest
Rate (%)

Payment
Date

Amount
(millions)

Florida Power & Light

Commercial Paper

VAR

VAR

$ 578

TOTAL FLORIDA POWER & LIGHT

578

FPL Group Capital

Commercial paper

VAR

VAR

401

Debentures

4.086

02/16/07

575

Debentures

6.125

05/15/07

500

Fair value swap

(4)

FPL Energy

Senior Secured Bonds

Principal Payments

5.608

03/10/07

11

Principal Payments

6.125

03/25/07

3

Principal Payments

7.520

01/03/07

14

Principal Payments

5.608

09/10/07

9

Principal Payments

6.125

09/25/07

4

Principal Payments

6.876

06/27/07

10

Principal Payments

6.639

06/30/07

27

Principal Payments

7.520

06/30/07

14

Total Senior Secured Bonds

92

Senior Secured Notes

Principal Payments

6.665

06/27/07

10

Principal Payments

7.510

06/27/07

1

Principal Payments

7.110

01/02/07

2

Principal Payments

7.110

06/30/07

3

Total Senior Secured Notes

16

Construction Term Facility

Principal Payments

VAR

12/31/06

19

Principal Payments

VAR

06/30/07

9

Total Construction Term Facility

28

Other Debt

Principal Payments

VAR

Quarterly

5

Principal Payments

VAR

Quarterly

2

Principal Payments

VAR

01/31/07

6

Principal Payments

VAR

11/30/06

11

Principal Payments

VAR

07/31/07

4

Principal Payments

VAR

03/16/07

55

Total Other Debt

83

TOTAL FPL ENERGY

219

TOTAL FPL GROUP CAPITAL

1,691

TOTAL FPL GROUP, INC.

$ 2,269

May not agree to financial statements due to rounding.

 

 

FPL Group, Inc.
Long-term Debt, Net of Current Maturities
Schedule as of September 30, 2006
(unaudited)

Type of Debt

Interest

Rate (%)

Maturity

Date

Amount

(millions)

Florida Power & Light

First Mortgage Bonds

6.000

06/01/08

$ 200

First Mortgage Bonds

5.875

04/01/09

225

First Mortgage Bonds

4.850

02/01/13

400

First Mortgage Bonds

5.850

02/01/33

200

First Mortgage Bonds

5.950

10/01/33

300

First Mortgage Bonds

5.625

04/01/34

500

First Mortgage Bonds

5.650

02/01/35

240

First Mortgage Bonds

4.950

06/01/35

300

First Mortgage Bonds

5.400

09/01/35

300

First Mortgage Bonds

6.200

06/01/36

300

First Mortgage Bonds

5.650

02/01/37

400

Total First Mortgage Bonds

3,365

Revenue Refunding Bonds:

Miami-Dade Solid Waste Disposal

VAR

02/01/23

15

St. Lucie Solid Waste Disposal

VAR

05/01/24

79

Total Revenue Refunding Bonds

94

Pollution Control Bonds:

Dade

VAR

04/01/20

9

Martin

VAR

07/15/22

96

Jacksonville

VAR

09/01/24

46

Manatee

VAR

09/01/24

17

Putnam

VAR

09/01/24

4

Jacksonville

VAR

05/01/27

28

St. Lucie

VAR

09/01/28

242

Jacksonville

VAR

05/01/29

52

Total Pollution Control Bonds

494

Industrial Bonds

Dade

VAR

06/01/21

46

Total Industrial Bonds

46

Term Loan

May 2008

250

Unamortized discount

(35)

TOTAL FLORIDA POWER & LIGHT

4,214

FPL Group Capital

Debentures (B Equity Units)

5.551

02/16/08

506

Debentures

7.375

06/01/09

225

Debentures

7.375

06/01/09

400

Debentures

5.625

09/01/11

600

Debentures (Junior Subordinated)

5.875

03/15/44

309

Debentures (Junior Subordinated)

6.600

10/01/66

350

Debentures (Junior Subordinated)

6.350

10/01/66

350

Total Debentures

2,740

Term Loans

June 2008

400

Fair value swaps

-

Unamortized discount

(3)

FPL Energy

Senior Secured Bonds

Senior Secured Bonds

6.876

06/27/17

89

Senior Secured Bonds

6.125

03/25/19

84

Senior Secured Bonds

6.639

06/20/23

287

Senior Secured Bonds

5.608

03/10/24

317

Total Senior Secured Bonds

777

Senior Secured Notes

7.520

06/30/19

221

Senior Secured Notes

7.110

06/28/20

99

Limited-recourse Senior Secured Notes

7.510

07/20/21

195

Construction Term Facility

VAR

06/30/08

346

Other Debt

Other Debt

VAR

12/27/07

323

Other Debt

VAR

12/19/17

93

Other Debt

8.010

12/31/18

3

Other Debt

Part fixed & VAR

11/30/19

217

Other Debt

10.630 & 6.650

09/30/20

6

Total Other Debt

642

TOTAL FPL ENERGY

2,280

TOTAL FPL GROUP CAPITAL

5,417

TOTAL FPL GROUP, INC.

$ 9,631

May not agree to financial statements due to rounding.

 

Florida Power & Light Company

Statistics

(unaudited)

Quarter

Year to Date

Periods Ended September 30,

 

2006

 

2005

 

2006

 

2005

 

Energy sales (million kwh)

Residential

16,675

17,516

41,495

41,418

Commercial

12,230

12,306

33,233

32,714

Industrial

1,013

951

3,032

2,883

Public authorities

133

149

414

431

Electric utilities

434

434

1,191

1,159

Increase (decrease) in unbilled sales

278

749

1,311

1,284

Interchange power sales

482

403

1,825

1,528

Total

31,245

32,508

82,501

81,417

Average price (cents/kwh) 1

Residential

12.00

9.64

11.90

9.61

Commercial

10.48

8.12

10.53

8.19

Industrial

8.98

6.85

8.90

6.78

Total

11.23

8.92

11.14

8.87

Average customer accounts (000's)

Residential

3,911

3,840

3,897

3,821

Commercial

480

472

477

469

Industrial

22

21

21

20

Other

3

4

3

3

Total

4,416

4,337

4,398

4,313

1 Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and

any provision for refund.

2006

Normal

2005

Three months ended September 30

Cooling degree-days

896

871

1,028

Heating degree-days

-

-

-

Nine months ended September 30

Cooling degree-days

1,468

1,405

1,480

Heating degree-days

191

220

200