EEI Annual Finance Committee Meeting

1
EEI Annual Finance Committee Meeting

• May 20-21, 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 SEC filings, in press releases,
  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,
  estimated, 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 use of
  certain fuels required for the production of
  electricity. 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

• 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 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.
• The operation of power generation facilities
  involves many risks, including start up risks,
  breakdown or failure of equipment, transmission
  lines or pipelines, 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 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 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 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.

4

• 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.
• 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 or accounting
  standards.
• 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.

5
Capitalizing on Our Strengths

• Premier integrated utility
• high growth, stable customer base
• favorable regulatory climate
• Successful wholesale generation business
• well hedged portfolio
• attractive earnings growth prospects
• Strong balance sheet
• Substantial cash flow to fund expansion

6
Financial DisciplineWell Hedged Position
Earnings Contribution 2003E 1

• 2003 Capacity
• contracted 2 FPL
  100 FPL Energy 76
• Total FPL Group 3 96

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 3/31/03 3 Weighted average
based on 2003 estimated earnings contribution
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Premier Electric Utility

• Favorable customer mix
• Strong customer and usage growth
• Operational excellence
• Proven cost management
• Constructive regulatory environment
• Superior environmental performance

Attractive financial returns
9
Growing EPS Contributions at FPL(GAAP)
Assuming dilution
10
High Growth Utility with Favorable Customer Mix
of Revenues by Customer Class 2

• Solid customer base
• over 4 million customer accounts
• residential and commercial customers gt 90 of
  total
• Strong demand growth1
• 2.1 avg. annual increase in customer accounts
• 1.6 avg. annual increase in usage per customer

IndustryAverage
FPL
Notes 1 Over last 10 years 2 As of 12/31/02
11
Substantial Regulated Generation Fleet
Energy Sources (based on kWh produced in 2002)

• 18,277 1 MW of generating capability in Florida
• 600 additional MW to be added in 2003
• 1,900 MW to be added in 2005
• Diverse fuel mix

Nuclear
Purchased Power
Natural Gas
Oil
Coal
Note 1 As of 3/31/03
12
Operational Excellence
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.
13
Superior Cost Management(OM per customer)
Industry Average
FPL
14
FPL Residential Rates Low
Comparisons of a 1,000 kWh residential bill as of
5/15/03. Rates for FPL, PEF (Progress Energy
Florida) 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.
15
Superior Environmental Performance

• FPL received a rating of AAA, ranking 1 out
  of 30 Electric Companies in this sector.
• As consistently demonstrated in many industry
  sectors, environmental leadership by companies
  such as FPL reflects visionary management that
  ultimately leads to financial and stock
  out-performance.
• Frank Dixon - Innovest

Innovest Names FPL Group 1 Environmental Performe
r among Top 30 Utilities
16
Constructive Regulatory Environment in Florida

• Fuel, capacity charges directly passed through to
  customers
• 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

17
FPL Business Strategies

• Capitalize on growing demand for electricity in
  our service territory
• Continue to improve our outstanding operating
  performance
• Seek opportunities to profitably grow our core
  utility business
• Work to maintain the collaborative and
  progressive regulatory environment in Florida

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Disciplined Wholesale Generator

• Low 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

• 7,274 1 net MW in operation
• presence in 23 states

Note 1 Includes 550 MW of leased capacity at
R.I.S.E.P. As of 4/25/03
20
EPS Contributions at FPL Energy
GAAP
Adjusted
Assuming dilution. 2000 results include
merger-related expenses of 0.01 per share. 2001
results include a net unrealized mark-to-market
gain associated with non-managed hedges of 0.04
per share associated with non-managed hedges.
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 a net unrealized mark-to-market gain
associated with non-managed hedges of 1 million
after-tax.
21
Diversified Portfolio
Year-end 2004 (Projected) (11,525 1 Net MW in
Operation)
Regional Diversity
Fuel Diversity
Gas
60
Northeast
Central
26
36
Wind
20
Other
Mid-Atlantic
1
24
Hydro
Nuclear
Oil
West
3
9
7
14
Note 1 Includes 550 MW of leased capacity at
R.I.S.E.P.
22
Wind Energy Unique Advantage

• More than 1,700 net MW in operation
• U.S. market leader with more than 1/3 market
  share
• 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
• Disciplined development opportunities underway

23
Wind Energy Announced Growth(Projected
Operating Net MW)
24
FPL Energy Contract Coverage
More than 90 percent of expected 2003 gross
margin hedged
Notes1 Weighted to reflect in-service dates,
planned maintenance, and refueling outage for
Seabrook 2 Reflects RTC MW hedged 3 Reflects
on-peak MW hedged As of 3/31/03
25
Wind MW under Contract
As of 3/31/03
26
QFs and Other Projects MW under Contract
As of 3/31/03
27
FPL Energy Projected Earnings Contribution 2003
Contribution measure represents estimated segment
earnings excluding interest and taxes and FPL
Energy Corporate GA allocation. Includes PTCs
grossed-up to a pre-tax basis.
28
Project Restructuring Opportunities

• Highly experienced project restructuring team
• Proven track record with two significant project
  restructurings in 2002
• gas contract
• power supply contract
• Substantial backlog of opportunities for 2003
• power contracts in PJM
• natural gas supply contract in Northeast
• 3rd-party QF restructurings in NEPOOL and PJM

29
FPL Energy Business Strategies

• Profitably growing a geographically diverse
  portfolio
• Focusing on clean energy generation
• Optimizing assets through operational excellence,
  sound business management, and conservative
  marketing and trading practices

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Strong Financial Position

• Financial discipline
• Strong credit ratings
• A2 / A - FPL Group Capital Inc. (Debentures)
• Aa3 / A Florida Power Light Company (First
  Mortgage Bonds)
• Prudent dividend policy

55
1
Note 1 FPL Group Debt to Cap Ratio 49 with
80 equity credit for equity-linked securities
32
FPL Group Performance in 2002
2002 EPS
2002 Net Income ( millions)
Includes the cumulative effect of an accounting
change at FPL Energy (222 million after-tax or
1.28 per share), restructuring and other charges
at FPL Energy (73 million after-tax or 0.42 per
share), restructuring and impairment charges at
Corporate and Other (64 million after-tax or
0.37 per share), a reserve for leverage leases
at Corporate and Other (30 million after-tax or
0.17 per share), a favorable settlement of
litigation with the IRS at Corporate and Other
(30 million after-tax or 0.17 per share) and
net unrealized mark-to-market gains associated
with non-managed hedges at FPL Energy (1 million
after-tax).
33
Total Shareholder Return(12/31/01 12/31/02)
11
FPL Group
-15
SP 500 Electric Utilities Index
-22
SP 500 Index
34
Outlook for 2003 Remains Strong

• FPL
• Expect 725 - 735 million 2003 assuming normal
  weather
• FPL Energy
• Expect 2003 earnings of 165 - 190 million 1
• More than 90 percent of 2003 gross margin hedged
• Full year impact of Seabrook and 324 MW of wind
  projects added in 2002
• Targeting additional 700 - 1,000 MW of wind
  projects by year end
• 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
Note 1 Excluding the mark-to-market effect of
non-managed hedges which cannot be determined at
this time
35
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

36
Appendix
37
Organizational Structure(Credit Ratings -
SP/Moodys)
FPL Group, Inc. Holding Company A/Not Rated
Florida Power Light Company (Utility
Operation) Issuer Rating A/A1 Secured
A/Aa3 Commercial Paper A-1/P-1
FPL Group Capital Inc (Funding Co. for
Non-regulated Ops) Issuer Rating A/Not
Rated Unsecured A-/A2 Commercial Paper A-1/P-1
FPL Energy, LLC (Non-rate regulated Operations)
The outlook indicated by Moodys for the ratings
of FPL is stable, while the outlook of FPL Group
Capital is negative reflecting uncertainty in the
wholesale generation market. The outlook
indicated by SP is negative for FPL Group and
its subsidiaries.
38
Capital Plan Supports Disciplined Growth
StrategyProjected Capital Sources Uses 2003 -
2005( billion)
Note 1 Increases based on past practice
39
Debt Maturities( millions)
Short-term debt as of 4/22/03
40
Liquidity Resources( millions)
As of 3/31/03
41
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
42
FPL Potential2003 Earnings Variability
See Safe Harbor Statement and SEC filings for
full discussion of risks
43
FPL Energy Potential Driversof 2003 Earnings
Variability

• Commodity price exposure (hedging)
• Counterparty performance (credit risk)
• Weather (wind, hydro)
• Asset restructuring activities

See Safe Harbor Statement and SEC filings for
full discussion of risks
44
FPL Energy Market Price SensitivityUnhedged
Segment
7 -6 2 -2 2 -3 7 -6
1 1 2 3 7
Notes1 Weighted to reflect in-service dates
all assets adjusted for 2003 outages, including
refueling outage for Seabrook2 Does not include
Maine hydro pricing based on NEPOOL RI Zone 3
Represents on-peak MW unhedged only As of 3/31/03
45
Seabrook Contract Coverage ( hedged)
RTC MW, as of 3/31/03
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