Lehman Brothers 2003 CEO Energy/Power Conference

1
Lehman Brothers2003 CEO Energy/Power Conference

• September 3, 2003

2
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 filing 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, 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 after the date on which such
  statement is made or to reflect the occurrence of
  unanticipated events. 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 changes in laws
  or regulations, including the Public Utility
  Regulatory Policies Act of 1978, as amended
  (PURPA), and the Public Utility Holding Company
  Act of 1935, as amended (Holding Company Act),
  changing governmental policies and regulatory
  actions, including those of the Federal Energy
  Regulatory Commission (FERC), the Florida Public
  Service Commission (FPSC) and the utility
  commissions of other states in which FPL Group
  has operations, and the U.S. 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 of 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,
  rules and regulations relating to air quality,
  water quality, waste management, 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
  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.

3

• The operation of power generation facilities
  involves many risks, including start up risks,
  breakdown or failure of equipment, transmission
  lines or pipelines, use of new technology, the
  dependence on a specific fuel source or the
  impact of unusual or adverse weather conditions
  (including natural disasters such as hurricanes),
  as well as the risk of performance below expected
  levels of output or efficiency. This could
  result in lost revenues and/or increased
  expenses. 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 the ability to dispose of
  spent nuclear fuel, 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 FPL
  Energy, LLC (FPL Energy) operating facility 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.
• 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 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.
• FPL Group and FPL use derivative instruments,
  such as swaps, options, futures 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 value of the reported fair value of these
  contracts. In addition, FPL's use of such
  instruments could be subject to prudency
  challenges by the FPSC and if found imprudent,
  cost disallowance.
• There are other risks associated with FPL Group's
  non-rate regulated businesses, particularly FPL
  Energy. 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, the price and supply of
  fuel, 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 its
  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 is likely to encounter significant
  competition for acquisition opportunities that
  may become available as a result of the
  consolidation of the power industry. In
  addition, FPL Group may be unable to identify
  attractive acquisition opportunities at favorable
  prices and to successfully and timely complete
  and integrate them.
• 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 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 interest costs.

4

• FPL Group's and FPL's results of operations can
  be 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. In addition, severe
  weather can be destructive, causing outages
  and/or property damage, which could require
  additional costs to be incurred.
• 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 rates or
  policies, rates of inflation, accounting
  standards, securities laws or corporate
  governance requirements.
• 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.
• 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
  events as well as company-specific events.
• 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 or work stoppage.
• The issues and associated risks and uncertainties
  described above are not the only ones FPL Group
  and FPL may face. Additional issues may arise or
  become material as the energy industry evolves.
  The risks and uncertainties associated with these
  additional issues could impair FPL Group's and
  FPL's businesses in the future.

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6
Capitalizing on Our Strengths

• Premier integrated utility
• high growth, stable customer base
• favorable regulatory climate
• operational excellence
• Successful wholesale generation business
• well diversified portfolio
• substantially hedged
• uniquely positioned for growth
• Strong financial position
• Substantial cash flow

7
FPL Group A Strong Balance
Earnings Contribution 2003E 1

• 2003 Capacity
• contracted 2 FPL
  100 FPL Energy 77
• Total FPL Group 3 97

Florida Power Light
FPL Energy Corp. Other
Notes 1 Excludes the mark-to-market effect of
non-managed hedges, which cannot be determined at
this time 2 As of 7/7/03 3 Weighted average based
on 2003 estimated earnings contribution
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FPL Strong Top-Line Growth

• Customer growth of 2.1 1
• over 4 million accounts
• favorable mix

Strong Demand Growth
3.7 avg annual kWh growth
of Revenues by Customer Class 2
FPL
2.4 avg annual kWh growth
Industry
55
35
FPL
Industry Average

• Underlying usage growth of 1.6 1
• inland expansion
• increasing average home size

Notes 1 Over last 10 years 2 As of 12/31/02
10
Constructive Regulatory Environment in Florida

• Appointed public service commission
• 5 commissioners with staggered terms
• Fuel, purchased power directly passed through
• Rate certainty through end of 2005
• incentive-based agreement allowing shareholders
  to benefit from productivity improvements
• win-win revenue sharing provision instead of
  ROE measure
• No current activity on wholesale restructuring

11
Delivering Value to Customers
Base Portion of 1,000 kWh Residential Bill
Real dollars (2002)
40
Nominal dollars
Residential Bill Comparison 1,000 kWh Bill
Rates of FPL as of 7/31/03 excluding municipal
taxes and franchise fees. Rates for PEF and TECO
as of 4/1/03 excluding municipal taxes and
franchise fees. Rates outside of Florida as
reported in EEI Typical Bills Report Winter 2003
(5/15/03).
12
Superior Cost Performance(OM per customer)
Industry Average
1
FPL
Note 1 Includes a one-time 35 million FPSC
approved addition to the storm fund reserve.
13
Operational Excellence at FPL
Plant Availability
Service Reliability Outage Time Per Customer
(Min.)
Fossil
Nuclear
FPL 50 better than average
FPL information as of 2002 industry information
as of 2001.
14
Emission Rates Leadership Position
Nitrogen Oxide and Sulfur Dioxide (lbs/mwh)
Industry Average SO2
FPL SO2
Industry Average NOx
FPL NOx
Carbon Dioxide (lbs/kwh)
Industry Average
FPL
FPL historic information Emissions from AOR's,
Generation from 1192's reflects FPL ownership
share only, purchased power not included.
Electric Utility Industry historical data from
DOE's EIA Electric Power Annual 2001
(3/03). Electric Utility Industry projected data
from DOE's EIA Annual Energy Outlook 2003
(1/03).
15
FPL Value Proposition

• Growing demand for electricity in our service
  territory
• Collaborative and progressive regulatory
  environment
• Outstanding operating performance
• Low environmental risk

Strong earnings and cash flow potential
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FPL Energy A DisciplinedWholesale Generator

• Moderate risk approach
• diversified by region, fuel source
• well hedged portfolio
• emphasis on base-load assets
• Low cost provider
• modern, efficient, clean plants
• operational excellence
• Industry leader in wind generation
• Conservative, integrated asset optimization
  function

• 9,691 1 net MW in operation
• presence in 24 states

Note 1 As of 8/26/03.
18
Diversified Portfolio at FPL EnergyYear-end 2004
(Projected)
(11,763 1 Net MW in Operation)
Regional Diversity
Fuel Diversity
Gas
58
Northeast
Central
25
35
Wind
22
Other
Mid-Atlantic
1
24
Hydro
Nuclear
Oil
West
3
9
7
16
Note 1 As of 8/26/03.
19
FPL Energy Moderate Risk Approach2004 Hedging
Program
Notes1 Weighted to reflect in-service dates,
planned maintenance and a Seabrook refueling
outage in 2003 2 Reflects RTC MW 3 Reflects
on-peak MW
20
Other Projects/QF Portfolio Stable Earnings

• 1,255 MW net ownership
• Variety of fuels and technologies
• 87 natural gas
• includes solar, coal, waste-coal, and waste-wood
• Bellingham/Sayreville and Doswell 80 of MW

Solid Long-term Contract Coverage 1
Note 1 As of 7/7/03.
21
Wind A Unique Advantage

• U.S. market leader with over 40 market share
• 1,767 net MW in operation
• Supported by policy trends (RPS, PTCs) and
  economics

• Attractive financial characteristics
• long-term power contracts (15 25 years)
• ROEs in the high teens/low 20s
• accretive in first full year
• Approximately 835 MW to be added in 2003

22
Seabrook Creating Significant Value

• Acquired premier nuclear unit for 799 million
• 1,024 MW ownership share (88.2 of total)
• purchase price represents 34/kw per year of
  remaining operating life (license expires 2026)
• Opportunity to create significant shareholder
  value
• more than 500 million of NPV estimated in the
  acquisition pro forma
• performance to date exceeding expectations (2003)

Contract Coverage 1
Note 1 As of 7/7/03.
23
Fossil Merchant Upside Leverage
Regional Diversity 1

• Low cost, efficient base load generation
• Liquid, gas-on-margin markets
• Cash flow positive at weak spark spreads
• Longer term upside potential

ERCOT
48
NEPOOL/PJM/NYPP
30
WECC/SERC
22
Note 1 As of 7/31/03. Includes projects under
construction/advanced development coming on-line
in 2003.
24
FPL Energy Value Proposition

• Moderate risk approach
• Well diversified by region and fuel source
• Growth opportunities in wind building on our
  competitive advantage
• Nuclear creating substantial value
• Merchant portfolio offers longer term upside
  leverage
• Disciplined hedging/optimization
• Opportunity to pursue acquisitions that are
  accretive, strategically attractive and
  financeable

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FPL Group Strong Financial Position

• Financial discipline
• Strong credit ratings
• Prudent dividend policy

FPL
Includes AEE, AEP, CEG, CIN, CMS, CNP, D, DTE,
DUK, ED, ETR, EXC, FE , FPL, PCG, PGN, PNW, PPL,
SO, TE, TXU, and XEL.
27
Total Shareholder Return
28
FPL Group Earnings Contributions by Major
Segment
FPL Energy Contribution to EPS
FPL Contribution to EPS
1
1
1
1
GAAP
GAAP
Adjusted
Adjusted
4
2
2
2
2
3
3
3
3
4
Notes 1 Assuming dilution. 2 2000 results
include merger-related expenses at FPL of 0.23
per share and at FPL Energy of 0.01 per share.
3 2001 results include merger-related expenses
at FPL of 0.09 per share and at FPL Energy net
unrealized mark-to-market gains associated with
non-managed hedges of 0.04 per share. 4 FPL
Energys 2002 results include the cumulative
effect of an accounting change of 1.28 per
share, restructuring and other charges of 0.42
per share and net unrealized mark-to-market gains
associated with non-managed hedges of 1 million
after-tax.
29
FPL Group Earnings Performance
1
1
GAAP
Adjusted
2
3
4
2
3
4
Notes 1 Assuming dilution. 2 2000 results
include merger-related expenses at FPL of 0.23
per share, at FPL Energy of 0.01 per share and
at Corporate Other of 2 million
after-tax. 3 2001 results include merger-related
expenses at FPL of 0.09 per share and at
Corporate Other of 0.02 per share and at FPL
Energy net unrealized mark-to-market gains
associated with non-managed hedges of 0.04 per
share. 4 2002 results include the cumulative
effect of an accounting change at FPL Energy of
1.28 per share, restructuring and other charges
at FPL Energy of 0.42 per share,
restructuring and impairment charges at Corporate
Other of 0.37 per share, a reserve for
leveraged leases at Corporate Other for 0.17
per share, a favorable settlement of litigation
with IRS at Corporate Other of 0.17 per
share, and net unrealized mark-to-market gains
associated with non-managed hedges at FPL Energy
of 1 million after-tax.
30
Outlook for 2003 Remains Strong

• FPL
• Expect earnings of 725 - 735 million assuming
  normal weather for the balance of the year
• FPL Energy
• Expect earnings of 165 - 190 million 1
• Corporate and Other
• Breakeven results at FPL FiberNet
• Higher interest expense
• Net drag of 20 - 30 cents per share

EPS of 4.80 to 5.00 1
1 Excluding the effect of non-managed hedges
which cannot be determined at this time.
31
FPL Group A Solid Investment

• Premier integrated utility serving a vibrant
  territory
• Growing wholesale generation business with
  moderate risk profile
• Operational and environmental excellence
• Financial strength and discipline
• Proven track record
• Solid corporate governance policies and practices

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Appendix
33
Organizational Structure(Credit Ratings -
SP/Moodys/Fitch)
FPL Group, Inc. Holding Company A/Not
Rated/A Outlook Negative/Not Rated/Stable
Florida Power Light Company (Utility
Operation) Issuer Rating A,A-1/A1/Not
Rated Secured A/Aa3/AA- Commercial Paper
A-1/P-1/F1 Outlook Negative/Stable/Stable
FPL Group Capital Inc (Funding Co. for
Non-regulated Ops) Issuer Rating A,A-1/Not
Rated/Not Rated Unsecured A-/A2/A Commercial
Paper A-1/P-1/F1 Outlook Negative/Negative/Stable
FPL Energy, LLC (Non-rate regulated Operations)
34
Debt Maturities( millions)
2
1
Notes 1 At 6/30/03, 100 million and 72 million
of short-term investments were available for FPL
and Corporate Other, respectively. In early
July 2003, loan proceeds from long-term
financings at FPL Energy were used to pay down
approximately 500 million short-term debt. 2 At
6/30/03, 69 million of cash was earmarked for
FPL bond redemptions in late July 2003.
35
Liquidity Resources( millions)
Maturity
Total
FPL Group Capital
Florida Power Light
Syndicated Facilities
October 2003
1,436
957
479
October 2004
1,500
1,000
500
Bilateral Facilities
146
146
0
October 2004
3,082
2,103
979
Total
As of 8/8/03
36
Pension Update( millions)

• Expected long-term rate of return is 7.75
• Weighted average discount rate used for
  determining obligation is 6.00
• FPL Groups pension status ranks very favorably
  relative to its peers

2,388
Fair Value of Pension Assets at 9/30/02
Pension Benefit Obligation at 9/30/02
1,405
Funded Status at 9/30/02
983
37
FPL Substantial Regulated Generation Fleet
Energy Sources (based on kWh produced in 2002)

• 18,591 1 MW of generating capability in Florida
• 300 additional MW to be added in 2003
• 1,900 MW to be added in 2005
• 1,100 MW to be added in 2007
• Diverse fuel mix

Nuclear
Purchased Power
Natural Gas
Oil
Coal
Note 1 As of 6/30/03
38
FPL Superior Cost Management(OM per retail
kWh)
Industry Average
1
FPL
Note 1 Includes a one-time 35 million FPSC
approved addition to the storm fund reserve.
39
FPL Potential Drivers of 2003Earnings
Variability
Note 1 As of 2Q03
See Safe Harbor Statement and SEC filings for
full discussion of risks
40
FPL Energy Market Price SensitivityUnhedged
Segment
Notes1 Weighted to reflect in-service dates
all assets adjusted for 2003 outages, including
refueling outage for Seabrook2 Represents
range of variability observed Jan. July 2003.
Variability in the second quarter was lower. 3
Pricing based on NEPOOL RI Zone 4 Reflects
on-peak MW unhedged only As of 2Q03
41
U.S. Wind Market Share (MW)
Competitors with less than 50 MW (lt1) each 16.1
FPL Energy 42.3
Competitors at 1 to lt7 each 41.6
Yearly Market Share (MW) 2001 2002 2003
1 Total New Capacity Installed 1,697 410
1,534 FPL Energy Contribution 843 201 2
812 3 50 49 53
Notes 1 Estimated as of 8/26/03 2 Excludes 123
MW of acquisitions. 3 Excludes 24 MW of
acquisitions.
42
FPL Energy Wind Portfolio 2003
MW
In Operation
1,767
812
Advance Development
2,579
Total MW
43
FPL Energy Wind EconomicsCash Flow Profile
Illustrative 100 MW
ROE
IRR
44
Wind MW under Contract
As of 7/23/03. Excludes small project of 3 MW
45
States with Renewable Portfolio Standards
Source Union of Concerned Scientists
46
QF Restructuring (Illustrative)

• Curtail plant during off-peak hours, sell fuel
  and supply PPA with low-cost wholesale power
• Utility shares savings through reduced rates
  under PPA
• Negotiated transactions with other project
  participants (steam host)

QF Savings
Utility Savings
5/MWh
5/MWh
MW
MW
Wholesale Power Market
QF Project
Utility
100/MWh
42/MWh
95/MWh
50/MWh
2/MWh
Fuel Cost
VOM Cost
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