Threat of Higher Rates from FGT Confirms Need for Florida EnergySecure Line

Houston-Based Florida Gas Transmission`s Request for Higher Profits
Substantiates FPL`s Proposal to Build New, Competing Pipeline
JUNO BEACH, Fla.--(Business Wire)--
A new request from Florida Gas Transmission - the Texas-based company opposing
Florida Power & Light Company`s new pipeline proposal - to raise one of its two
main natural gas transportation rates by more than 50 percent underscores the
need for increased competition to keep costs lower for consumers, FPL said
today.

For months, FGT has attempted to block Florida Public Service Commission (PSC)
approval of FPL`s proposed Florida EnergySecure Line. On Sept. 30, FGT filed a
motion to terminate the PSC`s proceedings and move the case to a different
venue. Then on Oct. 1, in a separate proceeding with the Federal Energy
Regulatory Commission (FERC), FGT petitioned for an increase of more than 50
percent on one of its two main transportation rates to acquire an unusually high
profit level - directly contradicting pivotal positions the Texas company has
taken throughout FPL`s EnergySecure Line hearing.

"FGT`s filing with FERC has confirmed what FPL has said all along: the Florida
EnergySecure Line is the most cost-effective and reliable method of increasing
both competition in the market and overall supply of clean natural gas for the
benefit of customers," said Sam Forrest, FPL Vice President of Energy Marketing
and Trading. "The Florida EnergySecure Line will diversify the source of natural
gas production beyond the Gulf of Mexico and enhance the reliability of the
electric system that serves half the population of Florida while customers will
see no impact on their bills for five years and a positive impact over the
lifetime of the project."

FGT`s rate increase request highlights the following contradictions:

1. FGT justifies its request for a sharp increase as an investment in new
infrastructure as necessary to serve new customers in Florida, asserting that
Florida`s population growth rate will be more than double the national average.
This is in stark contrast to the pessimistic view of Florida population growth
that FGT presented to the PSC in FPL`s EnergySecure Line hearing.

2. Another of FGT`s asserted rationales for its rate increase is the large
projected investment in both existing and new infrastructure. FGT`s asserted
need to invest in existing infrastructure markedly differs from FGT`s assertions
before the PSC that FPL should expect declining FGT rates due to the cumulative
effects of depreciation.

3. FGT claims that FPL`s proposal would cost customers more, despite volumes of
data that prove that the EnergySecure Line would actually reduce costs over
time. Yet FGT`s sudden increase is proof positive that Floridians need more gas
transportation competition to keep prices lower, fulfilling almost overnight the
predictions by FPL`s witnesses that FGT`s plan would actually increase FPL`s
dependence upon the two major existing pipelines serving Florida, FGT`s being
one of them. Increased dependence would make FPL and its electric customers even
more vulnerable to rate increases for gas transportation, due to the very
limited competition for that service.

FGT`s rate case filing reflects an increase of more than 50 percent in the cost
of service for one of its two main firm transportation service rates, but
essentially no increase to the cost of service for the other main firm
transportation rate. The rate being increased is the rate that applies to
approximately 40 percent of FPL`s currently contracted gas transportation
capacity needed to serve existing generation. The increase is projected to cost
FPL customers an additional $26 million per year for gas transportation.

Additionally, at the same time that FPL customers would be burdened by this rate
increase, FGT expects to earn a return on equity (ROE) under its rate proposal
in excess of 13.8 percent. This is more than 130 basis points above FPL`s
requested ROE in the electric base rate case pending before the PSC. At FGT`s
proposed capital structure of 60.74 percent equity and 39.26 percent debt, FGT
is requesting an overall return of 11.58 percent, 373 basis points above the
overall rate of return FPL requested in its base rate proceeding before the PSC.
The high returns that FGT seeks to earn on the gas transportation services it
provides to FPL and other customers underscores the need for additional
competition.

"Clearly, FGT`s approach - arguing for a sharp increase in the cost of service
for a rate that it is entitled to increase, while proposing no increase in the
cost of service for a rate it cannot increase - evidences the need for
additional competition in gas transportation that the Florida EnergySecure Line
would provide," Forrest said.

The Florida EnergySecure Line will benefit FPL's customers in several ways.
First, it will provide a vital increase in the supply of clean natural gas to
meet the needs of FPL's modernized Next Generation Clean Energy Centers at Cape
Canaveral and Riviera Beach. Second, the project will also diversify the source
of natural gas production beyond offshore Gulf of Mexico sources to additional
onshore sources. This will benefit customers by broadening access to additional
competitive markets for the supply of natural gas while helping to offset the
risk of disruption to natural gas production in the Gulf of Mexico from
hurricanes and tropical storms, as well as protecting access to the supply of
natural gas and the electric generation it supports in the event any of these
routes are disrupted. With FPL's Florida EnergySecure Line, customers will see
no bill impact for five years and a positive impact to bills over the lifetime
of the project.

Florida Power & Light Company

Florida Power & Light Company (FPL) is the largest electric utility in Florida
and one of the largest rate-regulated utilities in the United States. FPL serves
4.5 million customer accounts in Florida and is a leading employer in the state
with nearly 11,000 employees. The company consistently outperforms national
averages for service reliability while customer bills are well below the
national average. A clean energy leader, FPL has one of the lowest emissions
profiles and the No. 1 energy efficiency program among utilities nationwide. FPL
is a subsidiary of Juno Beach, Fla.-based FPL Group, Inc. (NYSE: FPL). For more
information, visit www.FPL.com.

Florida Power & Light Company
Jackie Anderson, 305-552-3888

Copyright Business Wire 2009