Strengths

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Salomon Smith Barney Power Merchant Energy
Conference May 15, 2002
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Lew Hay

• Chairman and Chief Executive Officer

Moray Dewhurst
Chief Financial Officer
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Safe Harbor Statement 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. Actual
results may differ substantially from such
forward-looking statements. A discussion of
factors that could cause actual results or events
to vary is contained in FPL Group's 2001 SEC Form
10-K.
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Growing, Top-Tier US Electric Company

• 21,682 mw
• Operations in 20 states
• 4 millioncustomers
• 11.0 billion market capitalization

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Three Strong Businesses
FPLEnergy
FPL
FPLFiberNet
105 m27
695 m 8
15 m 80
FPLGROUP
Net income 792 m EPS growth 7
2001 net income and EPS, excluding merger-related
items and effects of FAS 133
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Three Fundamental Attributes
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FPL Group

• Solid, integrated electric company
• Attractive growth opportunities in all three
  businesses

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Premier Electric Utility

• Favorable customer mix
• Strong customer growth
• Operational excellence
• Proven cost management
• Constructive regulatory environment

Attractive financial returns
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Attractive Customer Demographics
Customer Mix

• 4 million customer accounts
• Consistent strong growth
• 2.1 in customer accounts
• 1.1 in usage per customer
• High percentage of residential small
  commercial customers

4 3
Other
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32 32 33
37 56
Industrial
Commercial
Residential
Industry Average
Florida Power Light
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Operational Excellence
2001 WANO Performance IndexAll U.S. Sites
Fossil Plant Availability
Industry Average
Data Source Institute of Nuclear Power
Operators (INPO) U.S. sites
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Operational Excellence
Cost Management(OM per customer)
Service Reliability(2001 total outage time per
customer minutes)
FPL
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Constructive Regulatory Environment

• Rate certainty through end of 2005
• Incentive-based agreement
• no ROE limits

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Revenue-Sharing Thresholds( millions)

• 2002 2003 2004 2005
• 2002 est. revenue 3,470
• 2/3 to customers 3,580 3,680 3,780 3,880
• 100 to customers 3,740 3,840 3,940 4,040

Retail base rate revenue, as filed in Minimum
Filling Requirements.
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Constructive Regulatory Environment

• Rate certainty through end of 2005
• Incentive-based agreement
• no ROE limits
• shareholders benefit from productivity
  improvements
• Ability to reduce depreciation expense by up to
  125 million per year
• Limited support for deregulation

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Major US Wholesale Generator

• Presence in 18 states
• 5,063 mw portfolio
• Experience in developing, constructing, operating
  and acquiring power plants
• Strong asset optimization team

Major diversified wholesale electric generator
whichadds value by actively managing and trading
energy commodities in conjunction with our assets
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Diversified Portfolio
5,063 Net MW in Operation Year-end 2001
Regional Diversity
Fuel Diversity
Gas
46
Northeast
28
Central
Wind
36
28
Mid-Atlantic
Other
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4
Hydro
West
Oil
7
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Diversified Portfolio
11,588 Net MW in Operation Year-end 2004
Regional Diversity
Fuel Diversity
Gas
59
Northeast
Central
26
37
Wind
21
Other
Mid-Atlantic
2
21
Hydro
Nuclear
Oil
West
3
9
7
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Assumes addition of 1,000 mw of wind. Percentages
may not add to 100 due to rounding.
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Track Record of Consistent, Strong Earnings
Growth( millions)
Excluding non-recurring items and effects of FAS
133
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Disciplined Growth Strategy

• Grow generation portfolio in prudent way
• aggressive wind development
• focused fossil development
• pursuit of MA opportunities
• Optimize asset value
• integrated operations, business management and
  marketing and trading capabilities
• Hedge position via substantial contract coverage
• Moderate risk by regional and fuel diversity
• Manage portfolio actively

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Achievable Growth Strategy
20-30 Average Annual Earnings Growth
Existing Portfolio
Portfolio Build-out

• Optimization of assets (5,063 mw)

• 4,000 mw of announced gas-fired plants
• Close Seabrook by YE 2002
• 1,000-2,000 mw of wind projects

Assumes prices roughly equivalent to current
market forwards
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Achievable Growth Strategy
20-30 Average Annual Earnings Growth
Additional Upside Potential
Existing Portfolio
Portfolio Build-out
Additional Greenfield Development
Acquisitions

• Ranging from single plants to IPPs
• Multiple fuels
• gas
• nuclear
• wind
• coal
• hydro

• Optimization of assets (5,063 mw)

• 4,000 mw of announced gas-fired plants
• Close Seabrook by YE 2002
• 1,000-2,000 mw of wind projects

• Focused on high contract coverage projects
• Gas
• Wind

Assumes prices roughly equivalent to current
market forwards
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Wind Energy Capitalizing on our Strength

• Nearly 1,500 net mw in operation
• Wind is profitable
• We have a leading position
• We can build projects faster and cheaper
• We can operate with higher availability
• 1,000 - 2,000 mw of new wind projects by
  year-end 2003

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Seabrook Acquisition

• Attractive price
• Plays to our strengths
• superior operating skills
• northeast trading expertise
• Immediately accretive
• 1 - 4 cents in 2003
• 10 - 12 cents avg. 03-06
• accelerating thereafter
• Attractive financial returns
• strong cash flow
• substantial NPV
• 18 - 20 ROE

Based on current forward price curves
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Well-Hedged Position
2002 80 2003 50
Merchant mw
Committed mw
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FPL FiberNet

• Profitable niche business
• despite poor telecom market
• Great example of leveraging FPL skills

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Three Fundamental Attributes
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Financial StrengthEPS Growth
7.1 average annual EPS growth rate
Excluding nonrecurring items and effects of FAS
133
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Financial Strength

• Strong balance sheet
• Strong credit ratings
• A FPL Group
• Strong cash flow
• 1.4 billion 2001 operating cash flow

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Financial DisciplinePrudent Dividend Policy

• Healthy 3.7
  yield
• 48 payoutratio allowsfor growth

Earnings per share Dividends per share
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Financial DisciplineWell-Hedged Position
Capacity contracted
EPS Contribution 2001

• FPL 100
• FPL Energy 50 - 83
• Total FPL Group 94 - 98
• (weighted average)

Florida Power Light
FPL Energy
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Marketing Trading Serves Two Fundamental
Purposes
Marketing Trading
Risk Reduction
Asset Optimization
Risk Control
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ERCOT Spark Spreads( per mwh)

• Current Forward Contract under
• Spark Spread Spark Spread Contract
• 2002 9.58 14.31 79
• 2003 7.48 15.92 48

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Enhancing Profitability in ERCOT
14.75 - 17.00
1.00
0.25
0.50 - 1.50
7.00 - 8.00
6.00 - 7.00
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Projected Capital Sources Uses2002 - 2005(
billion)
8.2 - 10.2
7.9 - 9.9
Incremental debt capacity
1.4 - 1.9
Additional wind
1.0 - 2.0
Seabrook
0.8
Equity issuance
1.3 - 2.0
FPL Energy commitments
1.6
Operating cash flow less dividends
5.5 - 6.3
FPL commitments
4.5 - 5.5
Sources
Uses
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Strong Rating Valuable, but not a Fixed Target
Long-term goal A or equivalent subject to
fluctuating agency standards
CreditRating InvestmentGrade

• Absolute goal - strong investment grade
• Relative goal - upper band of peer group

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Earnings Guidance for 2002

• FPL approximately flat with 2001
• assuming normal weather
• FPL Energy up 15 - 20
• reflects modest capacity growth and delay in
  PTCs
• reflects poor hydro conditions in 1st quarter
• assumes no major changes in market prices
• FPL Group EPS 4.78 - 4.82

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Earnings Guidance for 2003 and Beyond

• Expect FPL to return to strong underlying
  fundamentals
• 4-5 average annual earnings growth
• Continue to target average annual growth of 20 -
  30 at FPL Energy

FPL Group Average EPS Growth 6 - 8
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Relative Low Risk, High Return
FPL Group represents one of best combinations of
risk, return and earnings growth among major
electric companies
High
FPL Group
Earnings Growth/Return
Low
High
Risk
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