-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q2QUBNBzeh1qW4bAixUxPK3inSUq7T9lC+H+Jas6p4uEQBu0iikLh2mkg39vwOcp lTgIUM6SuIpGHdapp1L3Nw== 0000753308-07-000002.txt : 20070126 0000753308-07-000002.hdr.sgml : 20070126 20070126082117 ACCESSION NUMBER: 0000753308-07-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070126 DATE AS OF CHANGE: 20070126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FPL GROUP INC CENTRAL INDEX KEY: 0000753308 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 592449419 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08841 FILM NUMBER: 07554596 BUSINESS ADDRESS: STREET 1: 700 UNIVERSE BLVD CITY: JUNO BEACH STATE: FL ZIP: 33408 BUSINESS PHONE: 5616943715 MAIL ADDRESS: STREET 1: P O BOX 14000 CITY: JUNO BEACH STATE: FL ZIP: 33408 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLORIDA POWER & LIGHT CO CENTRAL INDEX KEY: 0000037634 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 590247775 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-27612 FILM NUMBER: 07554597 BUSINESS ADDRESS: STREET 1: 700 UNIVERSE BLVD CITY: JUNO BEACH STATE: FL ZIP: 33408 BUSINESS PHONE: 5616943715 MAIL ADDRESS: STREET 1: P O BOX 14000 CITY: JUNO BEACH STATE: FL ZIP: 33408 8-K 1 form8k012607.htm FORM 8-K




UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 8-K




CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934



Date of earliest event reported:  
January 26, 2007


Commission
File
Number

Exact name of registrants as specified in their
charters, address of principal executive offices and
registrants' telephone number

IRS Employer
Identification
Number


1-8841

2-27612


FPL GROUP, INC.
FLORIDA POWER & LIGHT COMPANY
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000


59-2449419

59-0247775


State or other jurisdiction of incorporation or organization:  Florida



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:


[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


SECTION 2 - FINANCIAL INFORMATION


Item 2.02  Results of Operations and Financial Condition


On January 26, 2007, FPL Group, Inc. issued a press release announcing first quarter 2007 earnings for FPL Group, Inc. and Florida Power & Light Company.  A copy of the press release is attached as Exhibit 99, which is incorporated herein by reference.




SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS


Item 9.01  Financial Statements and Exhibits


(d) Exhibits.


The following exhibit is being furnished pursuant to Item 2.02 herein.

Exhibit
Number


Description

FPL
Group


FPL

             


99


FPL Group, Inc. Press Release dated January 26, 2007


x


x











SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


FPL GROUP, INC.
FLORIDA POWER & LIGHT COMPANY

(Registrants)


Date:  January 26, 2007

K. MICHAEL DAVIS

K. Michael Davis
Controller and Chief Accounting Officer of FPL Group, Inc.
Vice President, Accounting, Controller and
Chief Accounting Officer of Florida Power & Light Company
(Principal Accounting Officer of the Registrants)

EX-99 2 exhibit99.htm EXHIBIT 99 Exhibit 99

Exhibit 99


FPL Group, Inc.
Corporate Communications Dept.
Media Line: (305) 552-3888
January 26, 2007

FOR IMMEDIATE RELEASE

 

 

FPL Group reports 2006 fourth quarter and full-year earnings

  • FPL Energy reports record earnings;
  • Florida Power & Light customer growth remains strong;
  • FPL Group adjusted earnings exceed expectations for the year; and
  • FPL Group reaffirms 2007 and 2008 adjusted earnings expectations


JUNO BEACH, Fla. - FPL Group, Inc. (NYSE: FPL) today reported 2006 fourth quarter net income on a GAAP basis of $268 million, or $0.67 per share, compared with $209 million, or $ 0.54 per share, in the fourth quarter of 2005. FPL Group's net income for the fourth quarter 2006 included a net unrealized after-tax gain of $15 million associated with the mark-to-market effect of non-qualifying hedges and $1 million of after-tax merger related costs. The results of last year's fourth quarter included a net unrealized after-tax gain of $27 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 $254 million, or $0.63 per share for the fourth quarter of 2006, compared with $182 million, or $0.47 per share, in the fourth quarter of 2005.

For the full year 2006, FPL Group reported net income on a GAAP basis of approximately $1.3 billion or $3.23 per share, compared with $901 million or $2.34 per share, in 2005.

FPL Group's results for the full year 2006 included a net unrealized after-tax gain of $92 million associated with the mark-to-market effect of non-qualifying hedges and $14 million of after-tax merger related costs. Results for the full year 2005 included a net unrealized after-tax loss of $112 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 2006 earnings would have been approximately $1.2 billion, or $3.04 per share for the full year, compared with approximately $1 billion, or $2.63 per share, for the full year 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 as input to the company's employee incentive compensation plans. 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 performed well in 2006 posting record adjusted earnings of approximately $1.2 billion driven by continued outstanding results at FPL Energy and solid execution across virtually every segment of our business," said Lew Hay, chairman and chief executive officer of FPL Group. "FPL Energy had a remarkable year. New project additions, primarily wind and nuclear, along with a strong performance from the merchant portfolio contributed significantly to these exceptional results. Florida Power & Light also had a solid year financially. Earnings per share at Florida Power & Light increased approximately 4 percent year over year, with continued strong customer growth.

"During the year, we undertook a number of initiatives to position FPL Group for continued growth. Most notably, we continued the disciplined expansion of our industry leading wind program and announced the planned acquisition of the Point Beach Nuclear Power Plant in Wisconsin. With numerous growth prospects for the future in place, we remain comfortable with our earnings expectations for 2007 and 2008."

GAAP and adjusted earnings results for the fourth quarter contain several unusual items that impacted quarterly and full year results. These items include:

  • FPL Energy recorded an after-tax gain of $58 million, or $0.15 per share in the quarter and $63 million, or $0.16 per share for the full year, related to a legal judgment associated with an Indonesian geothermal project.
  • The Financial Accounting Standards Board (FASB) eliminated the approach previously used by FPL Energy to account for planned major maintenance activities known as the "accrue in advance" method. 2006 and 2005 amounts have been adjusted to reflect the retrospective application of this accounting standard. The impact on full year 2006 results was an after-tax gain of $3.5 million, or $0.01 per share and the corresponding change in 2005 was an after-tax gain of $16 million, or $0.05 per share.
  • FPL FiberNet recorded an after-tax impairment charge of $60 million against its metro-market assets, or a loss of $0.15 per share.
  • The Corporate & Other segment results were positively affected by certain tax adjustments, not all of which are expected to continue into future periods.

Florida Power & Light
Fourth quarter 2006 net income for Florida Power & Light Company, FPL Group's principal subsidiary, was $170 million, or $0.43 per share, compared to $124 million, or $0.32 per share, in the prior year quarter. For the full year, net income increased to $802 million, or $2.02 per share, compared to $748 million, or $1.94 per share in 2005.

Florida Power & Light continued to enjoy solid customer growth during the fourth quarter of 2006. The average number of customer accounts increased by 95,000, or 2.2 percent. For the full year, the average number of customer accounts increased by 88,000, an increase of 2 percent.

"Lower than anticipated usage stemming from higher underlying commodity prices, the initial implementation of the Storm SecureSM initiative, rising operating costs and the storm cost disallowance by the Florida Public Service Commission all contributed to a challenging year for Florida Power & Light," said Hay. "Despite the challenges, Florida Power & Light fared well financially in the quarter and for the year, delivering results largely in line with our revised expectations, except for the storm cost disallowance from the 2004-2005 hurricane seasons."

For the fourth quarter of 2006, operations and maintenance (O&M) expenses were essentially flat compared to the prior-year quarter. Comparisons with the 2005 fourth quarter are favored by the elimination of the storm reserve accrual in 2006 as well as lower nuclear maintenance costs. This was largely offset by continued cost pressures in other areas of the business. Employee benefits, customer care, and distribution costs all increased relative to the 2005 fourth quarter.

For the full year, O&M expense increased. Higher operating costs in distribution, customer care, and nuclear drove O&M expenses as well as costs associated with the Storm SecureSM initiative and employee benefits. Productivity improvements and the absence of the $20 million storm reserve accrual helped mitigate these O&M increases.

Looking forward, Florida Power & Light expects cost increases due to the Storm SecureSM initiative, fossil generation, customer service, insurance, and employee benefits to be partially offset by continued productivity gains.

Depreciation and amortization expense decreased $44 million to $199 million for the fourth quarter of 2006, primarily driven by the extension of the useful lives on the generation fleet which was implemented as a result of the 2005 base rate stipulation and settlement agreement.

Depreciation and amortization expense decreased $164 million to $787 million for the full year compared to the full year 2005, primarily driven by the same factors that impacted the fourth quarter partially offset by the introduction of the Martin and Manatee plant expansions in mid-2005.

During the year, Florida Power & Light invested approximately $1.7 billion to expand and enhance its electric system and generating facilities to ensure continued reliable service to meet the growing power needs of present and future customers.

Florida Power & Light continues to make good progress on its approximately 1,140 megawatt combined-cycle natural gas plant in Miami-Dade County that is expected to reach commercial operation in the second quarter of 2007 and will be capable of serving approximately 230,000 homes and businesses.

In December former Governor Bush and his cabinet, sitting as the state's Power Plant Siting Board, approved construction of a new natural gas, combined-cycle generating plant to be located in Palm Beach County. The two unit plant will have a capacity of more than 2,400 megawatts and will be capable of serving approximately 466,000 homes and businesses. The first unit of the plant is expected to go online in 2009.

Also in December, Florida Power & Light filed a site certification application with the Florida Department of Environmental Protection for its advanced technology coal power plant, which will be comprised of two 980-megawatt generating units in Glades County, Florida. Later this year, the company plans to file for a Determination of Need with the Florida Public Service Commission requesting that the Commission determine that the proposed Glades Power Park is needed to provide for the increased demand for power in South Florida. 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 the 2012/2013 timeframe. Once complete, the facility will generate enough power for more than 650,000 homes. The units are expected to have emissions profiles better than currently available IGCC technology.

FPL Energy

FPL Energy, the competitive energy subsidiary of FPL Group, reported fourth quarter 2006 net income on a GAAP basis of $148 million, or $0.37 per share, compared to $89 million, or $0.23 per share, in the prior-year quarter.

FPL Energy's net income for the fourth quarter 2006 included a net unrealized after-tax gain of $15 million associated with the mark-to-market effect of non-qualifying hedges. The results of last year's fourth quarter included a net unrealized after-tax gain of $27 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges, earnings would have been $133 million or $0.33 per share for 2006, compared to $62 million, or $0.16 per share, in 2005.

For the full year 2006, FPL Energy reported net income on a GAAP basis of $610 million, or $1.54 per share, compared to $203 million, or $0.53 per share in 2005.

FPL Energy's results for the full year 2006 included a net unrealized after-tax gain of $92 million associated with the mark-to-market effect of non-qualifying hedges. Results in the full year 2005 included a net after-tax loss of $112 million associated with the mark-to-market effect of non-qualifying hedges.

Excluding the mark-to-market effect of non-qualifying hedges, FPL Energy's earnings would have been $518 million, or $1.31 per share, for the full year 2006, compared with $315 million, or $0.82 per share, for the full year 2005. Included in adjusted earnings results is the gain related to a legal judgment mentioned earlier.

FPL Energy had an excellent quarter and year. The fourth quarter showed good growth, while the full-year growth in adjusted earnings was exceptional. Driving growth for the year were strong contributions from new assets, primarily new wind projects and Duane Arnold, as well as margin expansion at existing assets, good hydro conditions and growth in the retail and full requirements businesses. Both the fourth quarter and the full year include the gain related to the legal judgment mentioned previously. Operational performance was outstanding, with the fossil and nuclear plants collectively having their best year ever for reliability.

FPL Energy completed another successful year in its wind development program. FPL Energy's 2006 wind program included new projects in Texas, Minnesota and North Dakota as well as the purchase of existing assets in Texas, California and Minnesota. In all, FPL Energy added more than 800 megawatts to its wind portfolio and now owns 4,016 net megawatts of wind capacity.

With the Production Tax Credit (PTC) for wind and other renewable energy technologies extended for one additional year - through December 31, 2008 - equipment secured and a strong pipeline of wind projects, FPL Energy expects to add at least 1,500 megawatts of new wind projects to its portfolio in the 2007 and 2008 timeframe. Initial construction is already underway on two projects representing approximately 450 megawatts that are expected to reach commercial operation by the end of the third quarter 2007.

In addition to the growth of the wind business, FPL Energy expanded its portfolio and its strategic position through the completion of the acquisition of a 70 percent interest in the Duane Arnold Energy Center a nuclear power plant located northwest of Cedar Rapids, Iowa as well as the completion of a power uprate at the Seabrook Nuclear Plant bringing the net capacity of the plant to 1,098 megawatts. FPL Energy also announced an agreement to acquire the dual unit 1,033-megawatt Point Beach Nuclear Power Plant from a subsidiary of Wisconsin Energy.

"FPL Energy had an outstanding year and continues to drive the growth of FPL Group," said Hay. "Excellent performance from the existing portfolio, strong contributions from new projects, primarily wind and nuclear, and growth in our retail and asset optimization and trading businesses all contributed to our 2006 success. As the industry leader in wind and solar generation, and with more than 90 percent of our more than 13,000 megawatt power generation portfolio utilizing clean or renewable fuels, I am particularly pleased that FPL Energy is proving that environmental responsibility and financial success are not mutually exclusive."

Corporate and Other

Corporate and Other negatively impacted fourth quarter 2006 net income by $50 million, or a loss of $0.13 per share, primarily driven by the impairment at FPL FiberNet partially offset by the impact of certain state tax benefits. For the full year, Corporate and Other negatively impacted net income by $131 million or a loss of $0.33 per share. The 2006 full year drivers include the impairment at FPL FiberNet, interest and merger-related expenses partially offset by the impact of certain state tax benefits.

Outlook

"FPL Group is well positioned for the future with many visible drivers of earnings growth in place," Hay said. "We continue to expect very strong growth from FPL Energy, driven both by contributions from new investment as well as the roll-over of existing hedges to new values more closely approximating current market conditions. Florida Power & Light faces a more challenging year, with significant impact from the Storm SecureSM initiative and uncertainty around revenue growth, but we still look for modest growth from that business."

There has been little change in FPL Energy's hedged gross margin position for 2007 and 2008 from the previous quarter. The hedged gross margin position for each year remains essentially unchanged with about 90 percent and 80 percent, respectively, of expected equivalent gross margin hedged against commodity price volatility.

For 2007, FPL Group expects adjusted earnings of $3.35 to $3.45 per share assuming normal weather and excluding the effect of adopting new accounting standards, as well as the mark-to-market effect of non-qualifying hedges, neither of which can be determined at this time. The outlook for 2007 reflects continued customer growth at Florida Power & Light and normal weather at both the utility and FPL Energy. The earnings contribution from Florida Power & Light is expected to be in the range of $2.10 to $2.15, from FPL Energy of $1.45 to $1.55, and a negative impact from Corporate & Other of $0.20 to $0.25 per share.

Similarly, for 2008 FPL Group expects adjusted earnings to be in the range of $3.60 to $3.80 per share. The outlook is based on Florida Power & Light contributing $2.15 to $2.25 per share, FPL Energy contributing $1.65 to $1.85 per share and Corporate and Other reducing earnings by $0.20 to $0.25 per share.

 

As previously announced, FPL Group's fourth quarter earnings conference call is scheduled for 9 a.m. ET on Friday, Jan. 26, 2007. 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 nearly $16 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 4.4 million customer accounts in Florida.  FPL Energy, LLC, an FPL Group 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-look ing 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 and environmental matters.  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 amort ization 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 and maintenance of power generation facilities, including nuclear facilities, involve significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.

  • The operation and maintenance of power generation facilities involve many risks, including, but not limited to, start up risks, breakdown or failure of equipment, transmission lines or pipelines, the inability to properly manage or mitigate known equipment defects throughout our generation fleets unless and until such defects are remediated, 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, but not limited to, the requirement to purchase power in the market at potentially higher prices to meet 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, but not limited to, 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 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 co uld 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 December 31, 2006

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 2,892

 

$ 692

 

$ 39

 

$ 3,623

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

1,746

 

296

 

18

 

2,060

 

Other operations and maintenance

 

350

 

166

 

12

 

528

 

Impairment charges

 

-

 

8

 

97

 

105

 

Disallowed storm costs

 

(2)

 

-

 

-

 

(2)

 

Merger-related

 

-

 

-

 

2

 

2

 

Amortization of storm reserve deficiency

 

37

 

-

 

-

 

37

 

Depreciation and amortization

 

199

 

103

 

6

 

308

 

Taxes other than income taxes

 

249

 

19

 

-

 

268

   

Total operating expenses

 

2,579

 

592

 

135

 

3,306

                     

Operating Income (Loss)

 

313

 

100

 

(96)

 

317

Other Income (Deductions)

               
 

Interest charges

 

(67)

 

(73)

 

(40)

 

(180)

 

Equity in earnings of equity method investees

 

-

 

98

 

-

 

98

 

Gains (losses) on disposal of assets

 

2

 

22

 

-

 

24

 

Allowance for equity funds used during construction

 

6

 

-

 

-

 

6

 

Interest income

 

6

 

7

 

2

 

15

 

Other - net

 

1

 

1

 

-

 

2

   

Total other income (deductions) - net

 

(52)

 

55

 

(38)

 

(35)

                     

Income (Loss) Before Income Taxes

 

261

 

155

 

(134)

 

282

                     

Income Tax Expense (Benefit)

 

91

 

7

 

(84)

 

14

                     

Net Income (Loss)

 

$ 170

 

$ 148

 

$ (50)

 

$ 268

                     
                     

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

           
                     

Net Income (Loss)

 

$ 170

 

$ 148

 

$ (50)

 

$ 268

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

1

 

1

 

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

               
   

with non-qualifying hedges

 

-

 

(15)

 

-

 

(15)

                     

Adjusted Earnings (Loss)

 

$ 170

 

$ 133

 

$ (49)

 

$ 254

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 0.43

 

$ 0.37

 

$ (0.13)

 

$ 0.67

Adjusted Earnings (Loss) Per Share

 

$ 0.43

 

$ 0.33

 

$ (0.13)

 

$ 0.63

Weighted-average shares outstanding (assuming dilution)

         

399

                     
                     

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 December 31, 2005

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 2,298

 

$ 837

 

$ 29

 

$ 3,164

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

1,224

 

480

 

9

 

1,713

 

Other operations and maintenance

 

347

 

143

 

24

 

514

 

Impairment charges

 

-

 

-

 

-

 

-

 

Disallowed storm costs

 

-

 

-

 

-

 

-

 

Merger-related

 

-

 

-

 

-

 

-

 

Amortization of storm reserve deficiency

 

36

 

-

 

-

 

36

 

Depreciation and amortization

 

243

 

83

 

6

 

332

 

Taxes other than income taxes

 

196

 

16

 

1

 

213

   

Total operating expenses

 

2,046

 

722

 

40

 

2,808

                     

Operating Income (Loss)

 

252

 

115

 

(11)

 

356

                     

Other Income (Deductions)

               
 

Interest charges

 

(67)

 

(59)

 

(39)

 

(165)

 

Equity in earnings of equity method investees

 

-

 

19

 

-

 

19

 

Gains (losses) on disposal of assets

 

-

 

26

 

1

 

27

 

Allowance for equity funds used during construction

 

4

 

-

 

-

 

4

 

Interest income

 

2

 

5

 

5

 

12

 

Other - net

 

-

 

3

 

(1)

 

2

   

Total other income (deductions) - net

 

(61)

 

(6)

 

(34)

 

(101)

                     

Income (Loss) Before Income Taxes

 

191

 

109

 

(45)

 

255

                     

Income Tax Expense (Benefit)

 

67

 

20

 

(41)

 

46

                     

Net Income (Loss)

 

$ 124

 

$ 89

 

$ (4)

 

$ 209

                     
                     

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

           
                     

Net Income (Loss)

 

$ 124

 

$ 89

 

$ (4)

 

$ 209

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

-

 

-

 

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

               
   

with non-qualifying hedges

 

-

 

(27)

 

-

 

(27)

                     

Adjusted Earnings (Loss)

 

$ 124

 

$ 62

 

$ (4)

 

$ 182

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 0.32

 

$ 0.23

 

$ (0.01)

 

$ 0.54

Adjusted Earnings (Loss) Per Share

 

$ 0.32

 

$ 0.16

 

$ (0.01)

 

$ 0.47

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.

Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

Twelve Months Ended December 31, 2006

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 11,988

 

$ 3,558

 

$ 164

 

$ 15,710

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

7,116

 

1,747

 

80

 

8,943

 

Other operations and maintenance

 

1,374

 

592

 

56

 

2,022

 

Impairment charges

 

-

 

8

 

97

 

105

 

Disallowed storm costs

 

52

 

-

 

-

 

52

 

Merger-related

 

-

 

-

 

23

 

23

 

Amortization of storm reserve deficiency

 

151

 

-

 

-

 

151

 

Depreciation and amortization

 

787

 

375

 

23

 

1,185

 

Taxes other than income taxes

 

1,045

 

81

 

6

 

1,132

   

Total operating expenses

 

10,525

 

2,803

 

285

 

13,613

                     

Operating Income (Loss)

 

1,463

 

755

 

(121)

 

2,097

Other Income (Deductions)

               
 

Interest charges

 

(278)

 

(269)

 

(159)

 

(706)

 

Equity in earnings of equity method investees

 

-

 

181

 

-

 

181

 

Gains (losses) on disposal of assets

 

-

 

29

 

-

 

29

 

Allowance for equity funds used during construction

 

21

 

-

 

-

 

21

 

Interest income

 

21

 

25

 

7

 

53

 

Other - net

 

(1)

 

(1)

 

5

 

3

   

Total other income (deductions) - net

 

(237)

 

(35)

 

(147)

 

(419)

                     

Income (Loss) Before Income Taxes

 

1,226

 

720

 

(268)

 

1,678

                     

Income Tax Expense (Benefit)

 

424

 

110

 

(137)

 

397

                     

Net Income (Loss)

 

$ 802

 

$ 610

 

$ (131)

 

$ 1,281

                     
                     

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

           
                     

Net Income (Loss)

 

$ 802

 

$ 610

 

$ (131)

 

$ 1,281

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

14

 

14

 

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

               
   

with non-qualifying hedges

 

-

 

(92)

 

-

 

(92)

                     

Adjusted Earnings (Loss)

 

$ 802

 

$ 518

 

$ (117)

 

$ 1,203

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 2.02

 

$ 1.54

 

$ (0.33)

 

$ 3.23

Adjusted Earnings (Loss) Per Share

 

$ 2.02

 

$ 1.31

 

$ (0.29)

 

$ 3.04

Weighted-average shares outstanding (assuming dilution)

             

397

                     
                     

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.


Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

Twelve Months Ended December 31, 2005

 

Florida Power
& Light

FPL
Energy

 

Corporate &
Other

FPL Group,
Inc.

Operating Revenues

 

$ 9,528

 

$ 2,221

 

$ 97

 

$ 11,846

                     

Operating Expenses

               
 

Fuel, purchased power and interchange

 

4,910

 

1,235

 

26

 

6,171

 

Other operations and maintenance

 

1,307

 

452

 

55

 

1,814

 

Impairment charges

 

-

 

-

 

-

 

-

 

Disallowed storm costs

 

-

 

-

 

-

 

-

 

Merger-related

 

-

 

-

 

-

 

-

 

Amortization of storm reserve deficiency

 

155

 

-

 

-

 

155

 

Depreciation and amortization

 

951

 

311

 

23

 

1,285

 

Taxes other than income taxes

 

858

 

69

 

4

 

931

   

Total operating expenses

 

8,181

 

2,067

 

108

 

10,356

                     

Operating Income (Loss)

 

1,347

 

154

 

(11)

 

1,490

                     

Other Income (Deductions)

               
 

Interest charges

 

(224)

 

(223)

 

(146)

 

(593)

 

Equity in earnings of equity method investees

 

-

 

124

 

-

 

124

 

Gains (losses) on disposal of assets

 

-

 

42

 

10

 

52

 

Allowance for equity funds used during construction

 

28

 

-

 

-

 

28

 

Interest income

 

4

 

28

 

27

 

59

 

Other - net

 

1

 

23

 

(1)

 

23

   

Total other income (deductions) - net

 

(191)

 

(6)

 

(110)

 

(307)

                     

Income (Loss) Before Income Taxes

 

1,156

 

148

 

(121)

 

1,183

                     

Income Tax Expense (Benefit)

 

408

 

(55)

 

(71)

 

282

                     

Net Income (Loss)

 

$ 748

 

$ 203

 

$ (50)

 

$ 901

                     
                     
                     

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

           
                     

Net Income (Loss)

 

$ 748

 

$ 203

 

$ (50)

 

$ 901

                     

Adjustments, net of income taxes:

               
 

Merger - related costs

 

-

 

-

 

-

 

-

 

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

               
   

with non-qualifying hedges

 

-

 

112

 

-

 

112

                     

Adjusted Earnings (Loss)

 

$ 748

 

$ 315

 

$ (50)

 

$ 1,013

                     

Earnings (Loss) Per Share (assuming dilution)

 

$ 1.94

 

$ 0.53

 

$ (0.13)

 

$ 2.34

Adjusted Earnings (Loss) Per Share

 

$ 1.94

 

$ 0.82

 

$ (0.13)

 

$ 2.63

Weighted-average shares outstanding (assuming dilution)

             

386

                     
                     

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.

Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

December 31, 2006

Florida Power
& Light

 

FPL
Energy

 

Corporate &
Other

 

FPL Group,
Inc.

Property, Plant and Equipment

             

Electric utility plant in service and other property

$ 24,150

 

$ 9,696

 

$ 233

 

$ 34,079

Nuclear fuel

423

 

265

 

-

 

688

Construction work in progress

1,113

 

270

 

10

 

1,393

Less accumulated depreciation and amortization

(9,848)

 

(1,679)

 

(126)

 

(11,653)

    Total property, plant and equipment - net

15,838

 

8,552

 

117

 

24,507

Current Assets

             

Cash and cash equivalents

64

 

92

 

464

 

620

Customer receivables, net of allowances

872

 

389

 

18

 

1,279

Other receivables, net of allowances

221

 

211

 

(76)

 

356

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

558

 

219

 

8

 

785

Regulatory Assets:

             

    Deferred clause and franchise expenses

167

 

-

 

-

 

167

    Storm reserve deficiency

106

 

-

 

-

 

106

    Derivatives

921

 

-

 

-

 

921

    Other

-

 

-

 

3

 

3

Derivatives

4

 

372

 

-

 

376

Other

202

 

159

 

5

 

366

    Total current assets

3,115

 

1,442

 

422

 

4,979

Other Assets

             

Nuclear decommissioning reserve funds

2,264

 

561

 

(1)

 

2,824

Pension plan assets - net

857

 

-

 

751

 

1,608

Other investments

8

 

389

 

136

 

533

Regulatory assets:

             

    Storm reserve deficiency

762

 

-

 

-

 

762

    Deferred clause expenses

-

 

-

 

-

 

-

    Unamortized loss on reacquired debt

39

 

-

 

-

 

39

    Other

37

 

-

 

43

 

80

Other

153

 

406

 

80

 

639

    Total other assets

4,120

 

1,356

 

1,009

 

6,485

Total Assets

$ 23,073

 

$ 11,350

 

$ 1,548

 

$ 35,971

Capitalization

             

Common stock

$ 1,373

 

$ -

 

$ (1,369)

 

$ 4

Additional paid-in capital

4,318

 

4,695

 

(4,458)

 

4,555

Retained earnings

1,848

 

1,252

 

2,156

 

5,256

Accumulated other comprehensive income (loss)

-

 

17

 

96

 

113

    Total common shareholders' equity

7,539

 

5,964

 

(3,575)

 

9,928

Long-term debt

4,214

 

2,490

 

2,887

 

9,591

    Total capitalization

11,753

 

8,454

 

(688)

 

19,519

Current Liabilities

             

Commercial paper

630

 

-

 

467

 

1,097

Current maturities of long-term debt

-

 

572

 

1,073

 

1,645

Accounts payable

735

 

322

 

3

 

1,060

Customers' deposits

500

 

10

 

-

 

510

Margin cash deposits

-

 

35

 

-

 

35

Accrued interest and taxes

281

 

54

 

(33)

 

302

Regulatory liabilities:

             

    Deferred clause and franchise revenues

37

 

-

 

-

 

37

    Derivatives

-

 

-

 

-

 

-

    Pension

-

 

-

 

17

 

17

Derivatives

780

 

361

 

3

 

1,144

Other

423

 

202

 

21

 

646

    Total current liabilities

3,386

 

1,556

 

1,551

 

6,493

Other Liabilities and Deferred Credits

             

Asset retirement obligations

1,572

 

248

 

-

 

1,820

Accumulated deferred income taxes

2,561

 

886

 

(33)

 

3,414

Regulatory liabilities:

             
 

Accrued asset removal costs

2,044

 

-

 

-

 

2,044

 

Asset retirement obligation regulatory expense difference

868

 

-

 

-

 

868

 

Pension

-

 

-

 

531

 

531

 

Other

209

 

-

 

-

 

209

Other

680

 

206

 

187

 

1,073

Total other liabilities and deferred credits

7,934

 

1,340

 

685

 

9,959

Commitments and Contingencies

             

Total Capitalization and Liabilities

$ 23,073

 

$ 11,350

 

$ 1,548

 

$ 35,971

               

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

 

$ 8,269

 

$ 324

 

$ 31,844

 

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

 

7,315

 

229

 

22,421

 

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

 

Pension plan assets - net

 

802

 

-

 

47

 

849

 

Other investments

 

8

 

342

 

124

 

474

 

Regulatory assets:

                 

    Storm reserve deficiency

 

957

 

-

 

-

 

957

 

    Deferred clause expenses

 

307

 

-

 

-

 

307

 

    Unamortized loss on reacquired debt

 

42

 

-

 

-

 

42

 

    Other

 

37

 

-

 

-

 

37

 

Other

 

144

 

337

 

34

 

515

 

 

Total other assets

 

4,380

 

997

 

205

 

5,582

 

Total Assets

 

$ 22,726

 

$ 9,394

 

$ 870

 

$ 32,990

 

Capitalization

                 

Common stock

 

$ 1,373

 

$ -

 

$ (1,369)

 

$ 4

 

Additional paid-in capital

 

4,318

 

4,308

 

(4,445)

 

4,181

 

Retained earnings

 

1,046

 

642

 

2,881

 

4,569

 

Accumulated other comprehensive income (loss)

-

 

(192)

 

(1)

 

(193)

 

 

Total common shareholders' equity

 

6,737

 

4,758

 

(2,934)

 

8,561

 

Long-term debt

 

3,271

 

2,264

 

2,504

 

8,039

 

 

Total capitalization

 

10,008

 

7,022

 

(430)

 

16,600

 

Current Liabilities

                 

Commercial paper

 

1,159

 

-

 

-

 

1,159

 

Current maturities of long-term debt

 

135

 

176

 

1,093

 

1,404

 

Accounts payable

 

863

 

361

 

21

 

1,245

 

Customers' 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

 

    Pension

 

-

 

-

 

-

 

-

 

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

 

457

 

(52)

 

3,052

 

Regulatory liabilities:

                 
 

Accrued asset removal costs

 

2,033

 

-

 

-

 

2,033

 
 

Asset retirement obligation regulatory expense difference

786

 

-

 

-

 

786

 
 

Pension

 

-

 

-

 

-

 

-

 
 

Other

 

256

 

-

 

-

 

256

 

Other

 

668

 

463

 

180

 

1,311

 

 

Total other liabilities and deferred credits

7,864

 

1,131

 

128

 

9,123

 

Commitments and Contingencies

                 

Total Capitalization and Liabilities

 

$ 22,726

 

$ 9,394

 

$ 870

 

$ 32,990

 

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


Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.

 

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

Twelve Months Ended December 31, 2006

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

Cash Flows From Operating Activities

                 

Net income (loss)

 

$ 802

 

$ 610

 

$ (131)

 

$ 1,281

 

Adjustments to reconcile net income (loss) to net

                 

cash provided by (used in) operating activities:

                 

Depreciation and amortization

 

745

 

375

 

23

 

1,143

 

Nuclear fuel amortization

 

89

 

37

 

1

 

127

 

Impairment charges

 

-

 

8

 

97

 

105

 

Recoverable storm-related costs of FPL

 

(330)

 

-

 

-

 

(330)

 

Amortization of storm reserve deficiency

 

151

 

-

 

-

 

151

 

Unrealized (gains) losses on marked to market energy contracts

-

 

(173)

 

-

 

(173)

 

Deferred income taxes

 

27

 

301

 

45

 

373

 

Deferred pension cost

 

(54)

 

-

 

8

 

(46)

 

Cost recovery clauses and franchise fees

 

940

 

-

 

-

 

940

 

Change in prepaid option premiums

 

(73)

 

7

 

-

 

(66)

 

Equity in earnings of equity method investees

 

-

 

(181)

 

-

 

(181)

 

Distribution of earnings from equity method investees

 

-

 

104

 

-

 

104

 

Changes in operating assets and liabilities:

                 
 

Customer receivables

 

(219)

 

-

 

4

 

(215)

 
 

Other receivables

 

40

 

29

 

(7)

 

62

 
 

Material, supplies and fossil fuel inventory

 

(110)

 

(97)

 

4

 

(203)

 
 

Other current assets

 

9

 

(2)

 

1

 

8

 
 

Accounts payable

 

(124)

 

(60)

 

(18)

 

(202)

 
 

Customer deposits

 

77

 

-

 

(1)

 

76

 
 

Margin cash deposits

 

(485)

 

(62)

 

1

 

(546)

 
 

Income taxes

 

157

 

(90)

 

(93)

 

(26)

 
 

Interest and other taxes

 

24

 

13

 

12

 

49

 
 

Other current liabilities

 

(18)

 

39

 

(5)

 

16

 
 

Other liabilities

 

10

 

(76)

 

(16)

 

(82)

 

Other - net

 

10

 

4

 

122

 

136

 

Net cash provided by (used in) operating activities

 

1,668

 

786

 

47

 

2,501

 

                     

Cash Flows From Investing Activities

                 

Capital expenditures of FPL

 

(1,763)

 

-

 

-

 

(1,763)

 

Independent power investments

 

-

 

(1,701)

 

-

 

(1,701)

 

Nuclear fuel purchases

 

(105)

 

(108)

 

1

 

(212)

 

Other capital expenditures

 

-

 

-

 

(63)

 

(63)

 

Sale of independent power investments

 

-

 

20

 

-

 

20

 

Loan repayments and capital distributions from equity method investees

-

 

-

 

-

 

-

 

Proceeds from sale of securities in nuclear decommissioning and storm funds

2,673

 

462

 

-

 

3,135

 

Purchases of securities in nuclear decommissioning and storm funds

(2,738)

 

(479)

 

-

 

(3,217)

 

Proceeds from sale of other securities

 

-

 

-

 

96

 

96

 

Purchases of other securities

 

-

 

-

 

(109)

 

(109)

 

Funding of secured loan

 

-

 

-

 

-

 

-

 

Repayment of secured loan

 

-

 

-

 

-

 

-

 

Proceeds from termination and sale of leveraged leases

-

 

-

 

-

 

-

 

Other - net

 

-

 

8

 

(1)

 

7

 

Net cash provided by (used in) investing activities

 

(1,933)

 

(1,798)

 

(76)

 

(3,807)

 

                     

Cash Flows From Financing Activities

                 

Issuances of long-term debt

 

937

 

790

 

1,681

 

3,408

 

Retirements of long-term debt

 

(135)

 

(180)

 

(1,350)

 

(1,665)

 

Proceeds from purchased Corporate Units

 

-

 

-

 

210

 

210

 

Payments to terminate Corporate Units

 

-

 

-

 

(258)

 

(258)

 

Retirements of preferred stock

 

-

 

-

 

-

 

-

 

Net change in short-term debt

 

(529)

 

-

 

467

 

(62)

 

Issuances of common stock

 

-

 

-

 

330

 

330

 

Dividends on common stock

 

-

 

-

 

(593)

 

(593)

 

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

-

 

388

 

(388)

 

-

 

Other - net

 

-

 

23

 

3

 

26

 

Net cash provided by (used in) financing activities

 

273

 

1,021

 

102

 

1,396

 

                     

Net increase (decrease) in cash and cash equivalents

 

8

 

9

 

73

 

90

 

Cash and cash equivalents at beginning of period

 

56

 

83

 

391

 

530

 

                     

Cash and cash equivalents at end of period

 

$ 64

 

$ 92

 

$ 464

 

$ 620

 

                     

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)

     

Twelve Months Ended December 31, 2005

 

Florida Power
& Light

FPL
Energy

Corporate &
Other

FPL Group,
Inc.

 

Cash Flows From Operating Activities

Net income (loss)

$ 748

$ 203

$ (50)

$ 901

Adjustments to reconcile net income (loss) to net

cash provided by (used in) operating activities:

Depreciation and amortization

909

311

22

1,242

Nuclear fuel amortization

72

27

-

99

Impairment charges

-

-

-

-

Recoverable storm-related costs of FPL

(659)

-

-

(659)

Amortization of storm reserve deficiency

155

-

-

155

Unrealized (gains) losses on marked to market energy contracts

-

191

-

191

Deferred income taxes

531

(158)

(30)

343

Deferred pension cost

(52)

-

(18)

(70)

Cost recovery clauses and franchise fees

(825)

-

-

(825)

Change in prepaid option premiums

(43)

(14)

-

(57)

Equity in earnings of equity method investees

-

(124)

-

(124)

Distribution of earnings from equity method investees

-

86

-

86

Changes in operating assets and liabilities:

Customer receivables

(82)

(139)

(6)

(227)

Other receivables

(26)

(36)

(2)

(64)

Material, supplies and fossil fuel inventory

(133)

(40)

-

(173)

Other current assets

(9)

-

-

(9)

Accounts payable

221

105

20

346

Customer deposits

35

(4)

1

32

Margin cash deposits

382

6

(1)

387

Income taxes

(71)

49

(29)

(51)

Interest and other taxes

17

9

3

29

Other current liabilities

(44)

(43)

(8)

(95)

Other liabilities

31

(56)

(28)

(53)

Other - net

81

34

28

143

Net cash provided by (used in) operating activities

1,238

407

(98)

1,547

Cash Flows From Investing Activities

Capital expenditures of FPL

(1,616)

-

-

(1,616)

Independent power investments

-

(815)

-

(815)

Nuclear fuel purchases

(95)

(7)

-

(102)

Other capital expenditures

-

-

(13)

(13)

Sale of independent power investments

-

69

-

69

Loan repayments and capital distributions from equity method investees

-

199

-

199

Proceeds from sale of securities in nuclear decommissioning and storm funds

2,767

70

-

2,837

Purchases of securities in nuclear decommissioning and storm funds

(2,870)

(86)

-

(2,956)

Proceeds from sale of other securities

-

-

100

100

Purchases of other securities

-

-

(112)

(112)

Funding of secured loan

-

-

(43)

(43)

Repayment of secured loan

-

-

218

218

Proceeds from termination and sale of leveraged leases

-

-

58

58

Other - net

(2)

13

-

11

Net cash provided by (used in) investing activities

(1,816)

(557)

208

(2,165)

Cash Flows From Financing Activities

Issuances of long-term debt

588

803

-

1,391

Retirements of long-term debt

(500)

(110)

(605)

(1,215)

Proceeds from purchased Corporate Units

-

-

-

-

Payments to terminate Corporate Units

-

-

-

-

Retirements of preferred stock

(25)

-

20

(5)

Net change in short-term debt

667

-

-

667

Issuances of common stock

-

-

639

639

Dividends on common stock

(161)

-

(383)

(544)

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

-

(556)

556

-

Other - net

-

4

(14)

(10)

Net cash provided by (used in) financing activities

569

141

213

923

Net increase (decrease) in cash and cash equivalents

(9)

(9)

323

305

Cash and cash equivalents at beginning of period

65

92

68

225

Cash and cash equivalents at end of period

$ 56

$ 83

$ 391

$ 530

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


Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

       

Three Months Ended December 31,

2006

2005

Florida Power & Light Company

$ 0.43

$ 0.32

FPL Energy, LLC

0.37

0.23

Corporate and Other

(0.13)

(0.01)

Earnings Per Share

$ 0.67

$ 0.54

Reconciliation of Earnings Per Share to Adjusted Earnings Per Share:

Earnings Per Share

$ 0.67

$ 0.54

Merger - related costs

-

-

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

primarily FPL Energy

(0.04)

(0.07)

Adjusted Earnings Per Share

$ 0.63

$ 0.47

Twelve Months Ended December 31,

2006

2005

Florida Power & Light Company

$ 2.02

$ 1.94

FPL Energy, LLC

1.54

0.53

Corporate and Other

(0.33)

(0.13)

Earnings Per Share

$ 3.23

$ 2.34

Reconciliation of Earnings Per Share to Adjusted Earnings Per Share:

Earnings Per Share

$ 3.23

$ 2.34

Merger - related costs

0.04

-

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

primarily FPL Energy

(0.23)

0.29

Adjusted Earnings Per Share

$ 3.04

$ 2.63

Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

 

$ 0.54

 

$ 2.34

                       

Florida Power & Light - 2005 Earnings Per Share

 

0.30

 

0.52

 

0.80

 

0.32

 

1.94

Customer growth

 

0.03

 

0.03

 

0.03

 

0.03

 

0.11

Usage due to weather

 

(0.01)

 

0.06

 

(0.07)

 

0.05

 

0.04

Underlying usage growth and price mix

 

-

 

-

 

(0.03)

 

(0.04)

 

(0.07)

O&M expense

 

(0.02)

 

(0.05)

 

-

 

-

 

(0.06)

Depreciation expense

 

0.06

 

0.06

 

0.08

 

0.07

 

0.26

Storm disallowance

 

-

 

(0.07)

 

-

 

-

 

(0.07)

AFUDC

 

(0.02)

 

(0.02)

 

0.01

 

0.01

 

(0.02)

Interest expense (gross)

 

(0.03)

 

(0.03)

 

(0.02)

 

-

 

(0.08)

Share dilution

 

(0.01)

 

(0.01)

 

(0.02)

 

(0.01)

 

(0.05)

Other

 

0.01

 

(0.03)

 

0.04

 

-

 

0.02

Florida Power & Light - 2006 Earnings Per Share

 

0.31

 

0.46

 

0.82

 

0.43

 

2.02

                       

FPL Energy - 2005 Earnings Per Share

 

0.10

 

0.05

 

0.11

 

0.23

 

0.53

New investments

 

0.05

 

0.07

 

0.07

 

0.08

 

0.28

Existing assets

 

0.16

 

0.03

 

0.03

 

(0.05)

 

0.14

Asset optimization and trading

 

-

 

0.02

 

0.03

 

0.01

 

0.06

Restructurings activities

 

(0.03)

 

(0.01)

 

-

 

(0.01)

 

(0.05)

Indonesian project settlement

 

-

 

0.01

 

-

 

0.15

 

0.16

Non-qualifying hedges impact

 

0.14

 

0.09

 

0.33

 

(0.03)

 

0.52

Share dilution

 

-

 

-

 

-

 

-

 

(0.01)

Other, including interest expense

 

(0.04)

 

(0.03)

 

(0.03)

 

(0.01)

 

(0.09)

FPL Energy - 2006 Earnings Per Share

 

0.38

 

0.23

 

0.54

 

0.37

 

1.54

                       

Corporate and Other - 2005 Earnings Per Share

 

(0.04)

 

(0.05)

 

(0.04)

 

(0.01)

 

(0.13)

FPL FiberNet:

                   

Operations

 

0.01

 

-

 

-

 

0.01

 

0.01

Impairment

 

-

 

-

 

-

 

(0.15)

 

(0.15)

Merger - related costs

 

(0.01)

 

(0.01)

 

(0.02)

 

-

 

(0.04)

Share dilution

 

-

 

-

 

-

 

-

 

-

Other, including interest expense

 

(0.02)

 

(0.03)

 

0.02

 

0.02

 

(0.02)

Corporate and Other - 2006 Earnings Per Share

 

(0.06)

 

(0.09)

 

(0.04)

 

(0.13)

 

(0.33)

                       

FPL Group - 2006 Earnings Per Share

 

$ 0.63

 

$ 0.60

 

$ 1.32

 

$ 0.67

 

$ 3.23

                       

Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


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

       
           

December 31, 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

 

2,026

   

Debt with partial corporate support:

       
 

Natural gas-fired assets

 

341

   

Other long-term debt, including current maturities and

       

commercial paper

 

8,604

 

$ 8,604

Total debt

 

12,333

 

8,954

Junior Subordinated Debentures2

     

659

Common shareholders' equity

 

9,928

 

9,928

Total capitalization, including debt due within one year

 

$ 22,261

 

$ 19,541

           

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

 

8,561

 

8,561

Equity-linked debt securities

     

506

Total capitalization, including debt due within one year

 

$ 19,163

 

$ 17,092

           

Debt ratio

 

55%

 

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)

           

Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.


FPL Group, Inc.
Commercial Paper and Current Maturities
of Long-term Debt as of December 31, 2006

(unaudited)

Type of Debt

Interest
Rate (%)

Payment
Date

Amount
(millions)

Florida Power & Light

         

Commercial Paper

VAR

 

VAR

 

$ 630

TOTAL FLORIDA POWER & LIGHT

       

630

FPL Group Capital

         

Commercial paper

VAR

 

VAR

 

467

Debentures

4.086

 

02/16/07

 

575

Debentures

6.125

 

05/15/07

 

500

Fair value swap

       

(3)

               

FPL Energy

         
 

Senior Secured Bonds

         
   

Principal Payments

5.608

 

03/10/07

 

11

   

Principal Payments

6.125

 

03/25/07

 

4

   

Principal Payments

7.520

 

01/03/07

 

16

   

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

 

12

   

Principal Payments

7.520

 

12/31/07

 

10

   

Total Senior Secured Bonds

       

103

 

Senior Secured Notes

         
   

Principal Payments

6.665

 

01/10/07

 

4

   

Principal Payments

6.665

 

07/10/07

 

6

   

Principal Payments

7.510

 

07/20/07

 

1

   

Principal Payments

7.110

 

01/02/07

 

2

   

Principal Payments

7.110

 

06/30/07

 

3

   

Principal Payments

7.110

 

12/31/07

 

3

   

Total Senior Secured Notes

       

19

 

Construction Term Facility

         
   

Principal Payments

VAR

 

06/30/07

 

9

   

Principal Payments

VAR

 

12/31/07

 

19

   

Total Construction Term Facility

       

28

 

Other Debt

         
   

Principal Payments

VAR

 

03/31/07

 

1

   

Principal Payments

VAR

 

06/30/07

 

1

   

Principal Payments

VAR

 

09/30/07

 

1

   

Principal Payments

VAR

 

12/27/07

 

324

   

Principal Payments

VAR

 

01/31/07

 

4

   

Principal Payments

VAR

 

07/31/07

 

6

   

Principal Payments

VAR

 

05/31/07

 

55

   

Principal Payments

VAR

 

11/30/07

 

10

   

Principal Payments

6.800

 

07/31/07

 

21

   

Total Other Debt

       

423

 

TOTAL FPL ENERGY

       

573

TOTAL FPL GROUP CAPITAL

       

2,112

TOTAL FPL GROUP, INC.

       

$ 2,742

               

May not agree to financial statements due to rounding.

       


FPL Group, Inc.
Long-Term Debt, Net of Current Maturities
Schedule as of December 31, 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

 

150

Unamortized discount

       

(2)

FPL Energy

         

 

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

 

211

 

Senior Secured Notes

7.110

 

06/28/20

 

97

 

Limited-recourse Senior Secured Notes

7.510

 

07/20/21

 

19

 

Senior Secured Notes

6.665

 

01/10/31

 

176

               
 

Construction Term Facility

VAR

 

06/30/08

 

327

 

Other Debt

VAR

 

12/19/17

 

93

 

Other Debt

8.010

 

12/31/18

 

3

 

Other Debt

Part fixed & VAR

11/30/19

 

207

 

Other Debt

6.800

 

01/31/20

 

579

   

Total Other Debt

       

882

 

TOTAL FPL ENERGY

       

2,489

TOTAL FPL GROUP CAPITAL

       

5,377

TOTAL FPL GROUP, INC.

       

$ 9,591

May not agree to financial statements due to rounding.


Florida Power & Light Company

Statistics

(unaudited)

Quarter

Year to Date

Periods Ended December 31

 

2006

 

2005

 

2006

 

2005

Energy sales (million kwh)

               

Residential

 

13,076

 

12,930

 

54,570

 

54,348

Commercial

 

11,254

 

10,754

 

44,487

 

43,468

Industrial

 

1,004

 

1,030

 

4,036

 

3,913

Public authorities

 

151

 

137

 

565

 

568

Electric utilities

 

378

 

347

 

1,569

 

1,506

Increase (decrease) in unbilled sales

 

(1,326)

 

(1,593)

 

(15)

 

(308)

Interchange power sales

 

476

 

626

 

2,301

 

2,153

Total

 

25,013

 

24,231

 

107,513

 

105,648

                   
                   

Average price (cents/kwh) 1

               

Residential

 

11.91

 

9.62

 

11.90

 

9.61

Commercial

 

10.57

 

8.24

 

10.54

 

8.20

Industrial

 

8.77

 

6.67

 

8.87

 

6.75

Total

 

11.14

 

8.90

 

11.14

 

8.88

                   

Average customer accounts (000's)

               

Residential

 

3,935

 

3,852

 

3,906

 

3,828

Commercial

 

483

 

473

 

479

 

470

Industrial

 

21

 

21

 

21

 

20

Other

 

5

 

3

 

4

 

4

Total

 

4,444

 

4,349

 

4,410

 

4,322

                   
                   

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 December 31

               
 

Cooling degree-days

 

289

 

244

 

282

   
 

Heating degree-days

 

60

 

93

 

91

   

Twelve Months Ended December 31

               
 

Cooling degree-days

 

1,757

 

1,649

 

1,762

   
 

Heating degree-days

 

251

 

314

 

291

   
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