edison electric institute conference november 5-8, 2006

Edison Electric Institute ConferenceNovember 5-8, 2006

2

Cautionary Statements And Risk Factors That May Affect Future Results

Any statements made herein about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our SEC filings.

3

FPL Group: Fall 2006 Overview• Regulatory clarity and positive outlook at FPL

– positioned for continued success– sound fundamentals– storm cost securitization in progress

• Favorable environment for FPL Energy– continued wind development– roll-off of hedges at incrementally higher prices– recent portfolio additions (e.g., solar, nuclear)– growing retail and wholesale businesses

• Expect compound annual EPS growth of 9-10% through end of decade1

– composition of growth is transparent– assumes reasonable wind development and no incremental asset acquisitions

• Financial strength and flexibility

1 Assumes normal weather and excludes the effect of adopting new accounting standards and the mark-to-market effect of non-qualifying hedges neither of which can be determined at this time. 2005 is used as base in expected growth rate.

4

FPL Group2006 Adjusted EPS Expectations

Note: The current view of 2006 adjusted earnings expectations are valid as of October 30, 2006 and should be viewed in conjunction with the Company’s Cautionary Statements contained in the Appendix to this presentation.

Assumes normal weather and excludes 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.

As of 10/05 Current View

FPL $2.05 - $2.10 ~ lower end of range – [storm cost disallowance]

FPL Energy $0.90 - $1.00 $1.10 - $1.15

Corp. & Other

($0.15) - ($0.20) ($0.20) – ($0.25) – [incremental capex + non-recourse debt]

FPL Group $2.80 - $2.90 ~ $2.90 ±

5

FPL Group: Adjusted Earnings Per Share Expectations

Note: The 2007 and 2008 adjusted earnings expectations are valid as of October 30, 2006 and should be viewed in conjunction with the Company’s Cautionary Statements contained in the Appendix to this presentation.

1 Assumes normal weather and excludes 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.

2007P1

2008P1

FPL

FPL Energy

Corporate & Other

FPL Group

$2.10 - $2.15

$1.45 - $1.55

($0.20) - ($0.25)

$3.35 - $3.45

$2.15 - $2.25

$1.65 - $1.85

($0.20) - ($0.25)

$3.60 - $3.80

6

FPL Group

FPL FPL Energy

• $17.9 billion market capitalization

• $34.9 billion in total assets

• 33,935 mw in operation

• $11.8 billion operating revenue

• One of the largest U.S. electric utilities• Vertically integrated, retail rate- regulated utility• 20,777 mw in operation• 4.4 million customers• $9.5 billion operating revenue

• Successful competitive energy supplier, operating in 24 states

• U.S. market leader in wind-generation

• 13,158 mw in operation• $2.2 billion operating revenue

A Growing, Diversified Company

Operating revenues as of December 31, 2005; all other data as of September 30, 2006

7

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-0685

90

95

100

105

110

115

120

125

130

Indexed Return (%

)

FPL GroupComparative Total Shareholder Return*

(YTD thu 10/31)

FPL Group S&P 500 Electric Utilities Index S&P 500 Index

18.4%

26.1%

12.1%

* Dividends are reinvested

9

Florida Power & Light – Focus on 2007• 2007 fuel filing

– filed September 1, revised downward in October, – expect November decision – modest positive impact on retail prices (down 4-5%)

• Revenue outlook– expect continued, moderate customer growth– return to positive usage growth

• Cost outlook– primary driver will be Storm SecureSM

– productivity initiatives elsewhere

• Turkey Point 5– on schedule, on budget– positive impact for customers and shareholders

• Glades coal project– Two 980 MW super critical pulverized plants– Operation expected in 2012 / 2013– Need certificate and site permits expected to be filed by January

10

FPL: On of the best electric utilities in the U.S.

• Attractive customer mix • Exceptional growth• Operational excellence • Proven cost management • Superior environmental

performance• Good regulatory climate with

clarity through 2009

11

FPL: Demonstrated Ability to Grow Earnings

Steady customer growth translates to steady earnings growth

Delivered Sales & Adj. Earnings

400

500

600

700

800

95 96 97 98 99 00 01 02 03 04 05

Ad

juste

d E

arn

ing

s (

$ m

illi

on

s)

0

25

50

75

100

FP

L D

eli

vere

d S

ale

s (

bil

lio

n k

wh

)

Adjusted Earnings2CAGR 2.8%FPL Delivered Sales1 CAGR 2.9%

1 Delivered sales adjusted for the impact of the 2004 and 2005 hurricane seasons2 See Appendix for reconciliation of GAAP to adjusted amounts3 CAGR calculated from 1995 to 2005

U.S. Delivered Sales CAGR 1.9% 3

12

Florida ranks 1st in growth among most populous states

1 Estimated population by state as a percentage of total U.S. population; figures for 2030 are based on estimated population

Source: U.S. Census Bureau

1.1%United States

6.5%0.3%New York

4.3%0.6%Illinois

12.2%1.5%California

7.7%1.9%Texas

5.9%2.1%Florida

2000-2004 in 20041 CAGR % of Population

State

0.9%

0.1%

0.3%

1.1%

1.6%

2.0%

2000-2030CAGR

5.4%

3.7%

12.8%

9.2%

7.9%

in 20301

% of Population

13

Diversified Fuel Sources

Further hedged through its use of multiple energysources at FPL

FPL Projected 2015 Fuel Sources(mWh produced)

FPL 2005 Fuel Sources(mWh produced)

Nuclear16%

Coal14%

Gas59%

Purchased Power

9%

Oil2%

Gas43%

Nuclear19%

Purchased Power16%

Oil17%

Coal5%

Source: FPL Ten Year Power Plant Site Plan, 2006 - 2015

14

20,777

05 06E 07E 08E 09E 10E 11E 12E 13E 14E 15E

Managing Extraordinary Growth at FPL

5.13

4.32

05 06E 07E 08E 09E 10E 11E 12E 13E 14E 15E

Steady customer growth requires significant system expansion

Average Customer Accounts (mm)

Total Generation Capability(mw)

West CountyTurkey

Point 5

West County

Source: FPL Ten Year Power Plant Site Plan, 2006 - 2015

Glades or PPAs Glades

or PPAs

15

Proposed New Plant AdditionsIn Service Exp. Cost

Plant Name Date MW ($ millions) $ / KW

Turkey Point 2007 1,144 $580 $507

Unsited CT 2008 160 $84 $522

West County 1 2009 1,219 $689 $565

West County 2 2010 1,219 $633 $519

Unsited CTs, 2 units 2011 320 $180 $562

Glades 1 * 2012 850 $2,002 $2,355

Glades 2 * 2013 850 $1,472 $1,732

Unsited CT 2014 160 $110 $689

Unsited CT 2015 160 $114 $710

Unsited CC 2015 553 $674 $1,218

TOTALS 6,635 $6,538 $985

* Per 10 year site plan filed in Spring 2006; Glades project formally announced September 2006 with two 980 MW units, total expected costs not yet finalized

16

FPL: Investing Capital to Support Growing Energy Demand

Steady customer growth translates into increased investment

Capital Expenditures(billions)

$-

$0.5

$1.0

$1.5

$2.0

$2.5

01 02 03 04 05 06E 07E 08E 09E

All other Transmission and Distribution New Generation

2007-2009 cumulativeCapEx of $6.2B1

1 Projections as of September 30, 2006

17

ROE Trends - Regulatory and Financial

Regulatory

Financial

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

95 96 97 98 99 00 01 02 03 04 05

Florida Power & LightReturn on Equity

Downside Protection of 10.0% Continued

1 Financial ROE is calculated by using a rolling 12-month GAAP net income before cumulative effect adjustments and any extraordinary items divided by simple average of beginning and ending equity.

1

19

FPL Energy• Well diversified by fuel source and by region• Wind and nuclear continue to build substantial

value– PTC extension supports continued and consistent

wind development – acquisition of 70% interest in Duane Arnold

completed January 2006– Seabrook uprate

• Commodity market remains robust– expiring contracts renewing at higher margins

• Growing retail and wholesale businesses• Potential new portfolio additions • Strengthening outlook for 2007 and beyond

20

$299

$175$175$126$105$83

$58$32$9

97 98 99 00 01 02 03 04 05 06E 07E 08E

Strong Track Record of Growth at FPL Energy

Adjusted Earnings1

($ millions)

48% Compound Annual Growth Rate

1 See Appendix for reconciliation of GAAP to adjusted amounts2 FPL Energy’s 2006, 2007 and 2008 figures are based upon FPL Energy EPS expectations provided on Slides 4 and 5 and

are believed to be appropriate for this point in time. As a result, they should only be read in conjunction with the Company’s standard earnings expectations, which is usually delivered upon the release of quarterly earnings or in another Reg FD forum.

$655-$7352

$435-$4552

$575-$6152

21

Nuclear11%

Other2%

Wind30%

Oil5%

Gas49%

Hydro3%

FPL Energy’s diverse portfolio

13,158 Net mw in Operation

As of 9/30/06

FPL Energy operations

West15%

Central42% Northeast

22%

Mid-Atlantic

21%

Asset Type Regional Breakdown

22

FPL Energy has an attractive portfolio mix with unique strength in wind

Segment MW %Capital

Employed %Economic

Value Proposition

Wind 4,016 30% $3,202 40% Primarily long-term contract, plus terminal value

QF/Contract 2,461 18% $1,229 15% Long-term contract with variable merchant tail

New England 2,671 20% $1,540 19% Actively managed hedged positions, plus modest full requirements short positions

Texas 2,700 20% $1,074 13% As New England, plus modest retail short position

Other 1,472 12% $1,017 13% Minor assets and full requirements positions

TOTAL 13,320 $8,082

FPL Energy 2006P Portfolio Mix

Note: Based on June 2006 forecast. Capital employed is calculated as follows: Consolidated projects = equity + debt; non-consolidated projects = investment balance. Texas includes Gexa. All $ figures in millions.

23

U.S. leader in wind energy

18%

22%

33%

37%

43%41%

35%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

99 00 01 02 03 04 05 06 07

MW

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FP

L E

ner

gy

Mar

ket

Sh

are

Industry FPL Energy Market Share

Wind Generation Market Share

FPL Energy Wind Generation

~ 4,700 +~ 4,000

3,1922,758

2,720

1,7451,421

578460

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

99 00 01 02 03 04 05 06E 07E

MW

1 Assumes approximately 750 MW of new wind development in 2006 and 2007

11

?

25

“Wind 101” Economics

• Production Tax Credit available for every kWh produced;– 1.9¢ in 2005, escalating with inflation, for first 10 years of operation– credit available for new projects that achieve COD by 12/31/07

• MACRS depreciation over 5 years• PPA market in U.S. typically 15-25 years, 3-6 ¢/kWh• All-in construction costs in 2006/2007 will likely range

from $1,300 - $1,700/kw, depending upon size of project, region, interconnection requirements

• Typical production cost: less than 5 ¢/kWh• Typical wind project size: 50-150 MW• Typical capacity factor: 25-40% • Typical cash-on-cash returns: Mid-teens

26

Wind Energy Pricing

$ / mWhw/ PTCs

2000 2003 2005

50

100

150

2007 2008

Year

27

Wind projects conservatively create 15 to 40 cents of value per dollar invested

Duration (yrs)

20 25 30

+ 2 0.15 0.18 0.19

+ 4 0.31 0.36 0.40

Typical Wind Project Valuation- Value created per dollar invested -

Spread overCost of Capital

Assumptions: Annuity cash flow streams; zero terminal value; base discount rate of 8%

28

The risk profile of wind is also attractive

• Short development and construction cycles

• Front-loaded cash flow profile• “Tolerant” operational risk• Customer credit• Resource variability

Wind Risk Characteristics

Wind

Rest of

Portfolio Total

Capital

Employed

$3.240%

$4.960%

$8.1

Non- or limited recourse debt

$2.0 83%

$0.417%

$2.4

Financing 1 ($ billions)

1 2006P forecast

29

The wind business contributes disproportionately to the FPL Energy portfolio

FPL Energy Adjusted Earnings Mix 1

27%35% 50%

34%

2002 2003 2004 2005 2006(P) 2007(P) 2008(P)

Allocation of adjusted earnings includes G&A allocation based upon MW’s and interest expense based on 50/50 debt/equity structure. 2006P based on a range of $435-455 million.

1 See Appendix for reconciliation of GAAP to adjusted earnings. 2006 (P) through 2008 (P)

assumes normal weather and excludes 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.

Windvs.All

Other

% Wind

31% – 33%

34% – 37%

36% – 40%

30

Where does wind rank in the valuation scale?

QUARTILE

1st 2nd 3rd 4th

Nuclear $2,126 $1,961 $1,811 $1,582

Hydro $2,023 $1,508 $977 $293

Coal $1,627 $1,489 $1,041 $227

Gas CC $741 $196 $155 NM

Gas Peakers

$319 $42 NM NM

Wind ~ $2,000 ~ $1,600 ~ $1,200 ~ $800

August 1, 2006 Lehman Research Report$/KW

Lehman Brothers

FPL Groupview

August 1, 2006 Lehman research report entitled “The Cheaper IPP” by Dan Ford and team. Used with permission.

31

What is FPL Energy worth? An end of 2006 view….

Portfolio

Element Quartile MW $/KW

Implied

Enterprise Value

Wind 1 934 $2,023 $1,888

Wind 2 2,669 $1,508 $4,025

Wind 3 328 $ 977 $ 320

Wind 4 86 $ 293 $ 25

Nuclear 1 1,519 $2,126 $3,229

Hydro 1 361 $2,023 $ 730

Gas CC 1 4,997 $ 741 $3,702

Gas CC 2 556 $ 196 $ 109

Peakers 1 949 $ 319 $ 303

Peakers 2 50 $ 196 $ 10

All other 872 $ 435 $ 380

TOTAL 13,320 $14,271

FPL Energy Valuation Analysis: Year-end 2006P

Based on Lehman Brothers August 1 report, “The Cheaper IPP”, with hydro values applied to wind projects. MW figures may not total due to rounding. All $ figures in millions unless noted otherwise.

32

FPL Energy’s growth profile supports an attractive value proposition for FPL Group shareholders

FPL Group Implied Valuation- 12/06 Basis -

Enterprise Value

FPL Energy (from prior slide, pg. 31) $14 – 15

FPL @ 15-16x 2006 earnings $17 – 19

Less: net debt ($12)

Implied equity value $19 – 22

$ / share $48 – 56

All $ figures shown in billions, except per share amounts

33

Our view of the FPL Group risk-reward profile

Wind

NewEngland

QF/Contract

FloridaPower & Light

Risk

Reward

Low

High

Texas

Other

1.0

1.0

35

FPL Group2006 Adjusted EPS Expectations

Note: The current view of 2006 adjusted earnings expectations are valid as of October 30, 2006 and should be viewed in conjunction with the Company’s Cautionary Statements contained in the Appendix to this presentation.

Assumes normal weather and excludes 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.

As of 10/05 Current View

FPL $2.05 - $2.10 ~ lower end of range – [storm cost disallowance]

FPL Energy $0.90 - $1.00 $1.05 - $1.15

Corp. & Other

($0.15) - ($0.20) ($0.20) – ($0.25) – [incremental capex + non-recourse debt]

FPL Group $2.80 - $2.90 ~ $2.90 ±

36

FPL Group: Adjusted Earnings Per Share Expectations

Note: The 2007 and 2008 adjusted earnings expectations are valid as of October 30, 2006 and should be viewed in conjunction with the Company’s Cautionary Statements contained in the Appendix to this presentation.


2007P1

2008P1

FPL

FPL Energy

Corporate & Other

FPL Group

$2.10 - $2.15

$1.45 - $1.55

($0.20) - ($0.25)

$3.35 - $3.45

$2.15 - $2.25

$1.65 - $1.85

($0.20) - ($0.25)

$3.60 - $3.80

37

1 Assumes normal weather and excludes the effect of adopting new accounting standards which cannot be determined at this time.

Drivers of Florida Power and Light Growth: 2006-20071

Expected 2006 EPS Range $2.05 – $2.10

05 storm write-off 0.07

Revenue 0.25 – 0.35

O&M expense (0.10) – (0.15)

Depreciation expense (0.06) – (0.08)

Interest and AFUDC (0.04) – (0.06)

All Other (0.06) – (0.08)


38

1 Assumes normal weather and excludes the effect of adopting new accounting standards which cannot be determined at this time.

Drivers of Florida Power and Light Growth: 2007-20081


Revenue 0.25 – 0.35

O&M expense (0.02) – (0.06)

Depreciation expense (0.06) – (0.08)

Interest and AFUDC (0.02) – (0.05)

All Other (0.04) – (0.06)


39


New investments 0.18 – 0.20

Existing portfolio 0.24 – 0.27

Asset restructuring, marketing and trading 0.02 – 0.03

Interest (0.05) – (0.04)

All other (0.05) – (0.04)



Drivers of FPL Energy Earnings Growth: 2006-20071

40


New investments 0.18 – 0.23

Existing portfolio 0.01 – 0.05

Asset restructuring, marketing and trading (0.01) – 0.01

Interest (0.01) – 0.01

All other (0.01) – 0.01


Drivers of FPL Energy Earnings Growth: 2007-20081


41

Florida Power & Light: Potential Drivers of 2007 Earnings Variability

Issue Variability

Potential Impact 2007

Weather variability At 80% probability ± 7-8¢

Revenue growth ± 10 – 20 bps ± 1-2¢

O&M expenses sensitivity ± 2% ± 4¢

Interest rates ± 1% ± 1¢

See Company’s Cautionary Statements contained in the Appendix and the Company’s filings for full discussion of risks

42

FPL Energy: Potential Drivers of 2007 Earnings Variability

Issue Sensitivity Variability

Potential Impact 2007

Weather•Wind portfolio•Maine hydro

wind resource

rainfall, snowpack

± 1 wind index1

± 20%2

± 2.5 – 3.0¢

± 3.0¢

Market Risk commodity prices ± $2/mmbtu3 ± 2.0 – 3.0¢

Oper. Performance EFOR4 ± 1% ± 1.0 – 3.0¢

New growth•Wind Timing of in-service One month ± 1.0¢

Asset restructuring < 1% FPL Energy earnings

1 Based on wind MW installed as of 12/31/062 From historic mean3 FPL Energy’s portfolio including the retail energy business is a net short gas position in 20074 Impact based on merchant assets

See Company’s Cautionary Statements contained in the Appendix and the Company’s filings for full discussion of risks

44

Sound Credit Profile Reflected On Balance Sheet And Credit Ratings

Total Debt toTotal Capitalization 1

S&P Moody’s Fitch

FPL Group, Inc. Issuer

A/ Stable

A2/Stable

A/Stable

FPL First Mortgage Bonds

A/Stable

Aa3/Stable

AA-/Stable

FPL Group Capital Debentures

A-/ Stable

A2/ Stable

A/Stable

1 GAAP Basis. Industry data as of June 30, 2006, FPL Group as of September 30, 2006

2 Adjusted TD/TC is 46%, as of September 30, 2006

Source: Company reports, EEI June 2006 Quarterly Update.

55% 59%

FPL Group IndustryAverage

2

45

Credit Facilities and Liquidityas of September 30, 2006 ($ millions)

FPL

FPL Group Capital FPL Group

Bank revolving LOCs (1) $ 2,000 (2) $ 2,500 $ 4,500 (2)

Less: LOC 190 216 406

$ 1,810 $ 2,284 $ 4,094

Revolving term

loan facility 250 0 250

Less: borrowings 250 0 250

0 0 0

Cash & equivalents 65 94 159

Net Available Liquidity $ 1,875 $ 2,378 $ 4,2531 Maturity date for FPL and FPL Group Capital are both November 2010. Provide for the issuance of letters of credit up to $4.5 billion and are available to support the companies’ commercial paper programs and to provide additional liquidity in the event of a loss to the companies’ or the subsidiaries’ operating facilities (including, in the case of FPL, a transmission and distribution property loss), as well as for general corporate purposes.

2 Excludes $300 mm in sr. secured revolving credit facilities of an entity consolidated by FPL under FIN46R, as revised (the variable interest entity (VIE)) that leases nuclear fuel to FPL which credit facilities are available only to the VIE

46

Growing, stable dividend 1

Dividend Payout

52%62%

FPL Group Industry Median

1 Annualized split-adjusted quarterly dividend2 Dividend payout is based on annualized dividend and 2006 First Call EPS estimate as of 9/30/06Source: Edison Electric Institute Third Quarter 2006 statistics

$1.04$1.08$1.12$1.16$1.20$1.30

$1.42$1.50

99 00 01 02 03 04 05 06

2

2

Additional Wind Information

49

Wind’s Future in the U.S. Promising…

• 2006 another great year for U.S. wind development

• Many challenges and opportunities exist

• Boom/bust cycle still with us

• 2006 - 2007 even greater challenge for U.S. market

– Upwards of 5,000 - 6,000 MW may be added 2006/ 2007 combined

– Total U.S. capacity may approach 15,000 MW by Dec 2007

50

2007 And Beyond: Our View

• PTC renewals will continue (2 year cycle?) ≈$200 mm/yr subsidy per year ($3.500B @ 32% NCF)

• Wind resource analysis and risk will be better understood

• Transmission/ interconnection

• Significant (upward) supplier price & quality pressures on turbines/ towers/ components

• Global market forces will impact U.S. (5,000 – 6,000 MW/year may be added in 2006/ 2007 combined)

• 25,000 MW U.S. market size by end of 2010 is realistic goal

Appendix

52

FPL - Reconciliation GAAP to Adjusted Earnings

There were no adjustments to GAAP earnings from 1994 to 1998 and from 2002 to 2005

1999 2000 2001

Net Income 576$ 607$ 679$

Adjustments, net of income taxes:

Settlement of litigation 42

Merger-related expenses 38 16 Adjusted Earnings 618$ 645$ 695$

($ millions, except per share amounts)

53

FPL Energy - Reconciliation GAAP to Adjusted Earnings

1999 2000 2001 2002 2003 2004 2005

Net Income (Loss) (46)$ 82$ 113$ (169)$ 194$ 172$ 187$

Adjustments, net of income tax:Impairment loss 104 Merger-related expenses 1 Cumulative effect of change in accounting principle (FAS 142) 222 Restructuring and other charges 73 Cumulative effect of change in accounting principles (FIN 46) 3

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

w ith non-qualifying hedges (8) (22) 3 112 Adjusted Earnings 58$ 83$ 105$ 126$ 175$ 175$ 299$

There were no adjustments to GAAP earnings in 1997 and 1998

Totals may not add due to rounding

54

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 presentation, 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 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 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.

55

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.

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•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.

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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.

edison electric institute conference november 5-8, 2006

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