Full Description

FPL Group, Inc. (FPL Group), incorporated in 1984, is a provider of electricity-related services. The Company has two principal operating subsidiaries, Florida Power & Light Company (FPL) and NextEra Energy Resources. FPL is a rate-regulated utility engaged primarily in the generation, transmission, distribution and sale of electric energy. NextEra Energy Resources is the Company’s competitive energy subsidiary, which produces the majority of its electricity from clean and renewable fuels. FPL Group Capital Inc. (FPL Group Capital), a wholly owned subsidiary of FPL Group, holds the capital stock of, or has equity interests in, FPL Group's operating subsidiaries, other than FPL, and provides funding for those subsidiaries, including NextEra Energy Resources. As at December 31, 2008, FPL's and NextEra Energy Resources generating assets, together, represented approximately 39,000 megawatt of capacity. FPL FiberNet, LLC (FPL FiberNet), a wholly subsidiary of the Company, provides fiber-optic services to FPL, telecommunications companies and other customers throughout Florida.

FPL Operations

FPL supplies electric service to a population of more than 8.7 million throughout most of the east and lower west coasts of Florida. During the year ended December 31, 2008, FPL served approximately 4.5 million customer accounts. During 2008, residential customers accounted for 53% of FPL's operating revenues. Commercial and industrials customers accounted for 40% and 4%, respectively, of FPL's operating revenues . FPL's retail operations provided approximately 99% of its operating revenues during 2008. As of December 31, 2008, FPL held 176 franchise agreements to provide electric service in various municipalities and counties in Florida, with varying expiration dates through 2039. At December 31, 2008, FPL's resources for serving load consisted of 24,997 megawatts, of which 22,087 megawatts were from FPL-owned facilities and 2,910 megawatts were available through purchased power contracts.

FPL's generating plants use a variety of fuels. FPL owns and operates 83 units that utilize fossil fuels, such as natural gas and/or oil, and has a joint-ownership interest in three coal units. As of December 31, 2008, FPL was constructing tthree natural gas-fired, combined-cycle units of approximately 1,220 megawatts each at its West County Energy Center in western Palm Beach County, Florida. FPL owns, or has undivided interests in, and operates four nuclear units, two at Turkey Point and two at St. Lucie, with a total net generating capability of 2,939 megawatts. FPL is in the process of adding approximately 400 megawatts of baseload capacity at its existing nuclear units at St. Lucie and Turkey Point. Energy Marketing & Trading (EMT), a division of FPL, buys and sells wholesale energy commodities, such as natural gas, oil and electricity. EMT procures natural gas and oil for FPL's use in power generation and sells excess gas, oil and electricity.

NextEra Energy Resources Operations

NextEra Energy Resources is a wholly owned subsidiary of FPL Group Capital. Through its subsidiaries, NextEra Energy Resources owns, develops, constructs, manages and operates domestic electric generating facilities in wholesale energy markets. NextEra Energy Resources also provides energy and capacity requirements services primarily to distribution utilities in certain markets, and owns a retail electric provider based in Texas. NextEra Energy Resources manages or participates in the management of approximately 96% of its projects, which represent approximately 99% of the net generating capacity in which NextEra Energy Resources has an ownership interest. At December 31, 2008, NextEra Energy Resources had ownership interests in operating independent power projects with a net generating capability totaling 16,928 megawatts. Generation capacity spans various regions and is produced utilizing a variety of fuel sources.

NextEra Energy Resources’s assets can be categorized into three groups: wind, non-wind contracted and merchant. At December 31, 2008, wind contracted and merchant had ownership interests in wind plants with a combined capacity of approximately 6,375 megawatts (net ownership), of which approximately 69% have long-term contracts with utilities and power marketers predominantly under fixed-price agreements with expiration dates ranging from 2011 to 2032. NextEra Energy Resources’s wind facilities are located in 16 states and Canada. At December 31, 2008, NextEra Energy Resources had 3,537 megawatts of non-wind contracted assets. The contracted category includes all projects, other than wind, with contracts for substantially all of their output, and approximately 1,825 megawatts of this capacity is gas-fired generation. The remaining 1,712 megawatts uses a variety of fuels and technologies, such as nuclear, waste-to-energy, oil, solar, coal and petroleum coke.

At December 31, 2008, NextEra Energy Resources’s portfolio of merchant assets included 7,016 megawatts of owned nuclear, natural gas, oil and hydro generation, of which 2,789 megawatts was located in the Electric Reliability Council of Texas (ERCOT) region, 2,751 megawatts in the New England Power Pool (NEPOOL) region and 1,476 megawatts in other regions. The merchant assets include 965 megawatts of peak generating facilities. Merchant assets are plants that do not have long-term power sales agreements to sell their output and therefore require active marketing and hedging.

NextEra Energy Resources wholly owns, or has undivided interests in, three nuclear power plants with a total net generating capability of 2,545 megawatts. NextEra Energy Resources is responsible for all plant operations and the ultimate decommissioning of the plants, the cost of which is shared on a pro-rata basis by the joint owners. PMI, a subsidiary of NextEra Energy Resources, buys and sells wholesale energy commodities, such as natural gas, oil and electricity. Its primary activity is to manage the commodity risk of NextEra Energy Resources’ portfolio and to sell the output from NextEra Energy Resources’s plants that have not been sold under long-term contracts. PMI procures natural gas and 'oil for NextEra Energy Resources use in power generation, as well as substantially all of the electricity needs for FPL En’s energy's retail operations conducted primarily in Texas, which at December 31, 2008, served approximately 1,200 megawatts of peak load to approximately 160,000 customers. PMI also provides energy and capacity requirements services primarily to distribution utilities in certain markets, and engages in energy trading activities. At December 31, 2008, PMI provided energy and capacity requirements services totaling approximately 3,300 megawatts of peak load in the NEPOOL, PJM Interconnection, L.L.C. (PJM) and ERCOT markets.

Other FPL Group Operations

FPL FiberNet leases wholesale fiber-optic network capacity and dark fiber to FPL and other customers, primarily telephone, Internet and other telecommunications companies. FPL FiberNet's primary business focus is the Florida metropolitan (metro) market. Metro networks cover Miami, Fort Lauderdale, West Palm Beach, Tampa, St. Petersburg, Orlando and Jacksonville. FPL FiberNet also has a long-haul network within Florida that leases bandwidth at wholesale rates. At December 31, 2008, FPL FiberNet's network consisted of approximately 2,745 route miles, which interconnected major cities throughout Florida.