Fixed Income Presentation

1
Fixed Income Presentation

• April 2004

2
Cautionary Statements And Risk Factors That May
Affect Future Results
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
materially from such forward-looking statements.
A discussion of factors that could cause actual
results or events to vary is contained in the
Appendix herein.
3
Two Strong Businesses

• Largest electric utility in Florida
• Vertically integrated, retail rate-
• regulated utility
• 4.1 million customers1
• 8.3 billion operating revenue1

• Successful wholesale generator
• U.S. market leader in wind-generation
• 11,041 mw in operation1
• 1.3 billion operating revenue1

1 Year ended 12/31/03
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FPL A Leading Electric Utility

• Attractive growth
• Superior cost performance
• Operational excellence
• Constructive regulatory environment
• Delivering value to customers and shareholders

6
Florida Ranks 1st in Growthamong Largest States

• Growth of Most Populous States

State Population in 20031 (millions) CAGR () 2000-2003
California 35.5 1.4
Texas 22.1 1.8
New York 19.2 0.3
Florida 17.0 2.0
Illinois 12.7 0.6
Pennsylvania 12.4 0.2
Ohio 11.4 0.2
Michigan 10.1 0.4
Georgia 8.7 1.8
New Jersey 8.6 0.8
FPL serves roughly half of the state
1 Estimated population as of 7/1/03 Source U.S.
Census Bureau
7
FPL 1 in Total Retail Sales

• Total mwh Retail Sales(millions)

FPL data as of 2003 all others as of
2002 Source Energy Information Administration,
2002
8
FPL Strong Top-Line Growth
Strong Demand Growth (10 years)
of Revenues by Customer Class
56
42
FPL 3
FPL 1
Industry Average 4
Industry Average 2

• Customer growth of 2.1 1
• Underlying usage growth of 1.5 1

1 From 1993-2003 2 From 1992-2002 3 As of
12/31/03 4 In 2002. Source EEI Statistics
Department
9
FPL Substantial Regulated Generation Fleet
Energy Sources (based on kWh produced in 2003)

• 19,056 1 MW of generating capability in
  Florida
• 1,900 MW to be added in 2005
• 1,100 MW to be added in 2007
• Diverse fuel mix
• Evaluating LNG

Nuclear
Purchased Power
Natural Gas
Oil
Coal
1 As of 12/31/03
10
High Plant Availability

• Fossil Nuclear

FPL data as of 2003 industry average data as of
2002 Sources NERC, Electric Utility Cost Group
NIID
11
Outstanding Reliability

• Outage Time per Customer (minutes)

FPL data as of 2003 industry average as of 2002
Industry data as of 2002. Source 2002 EEI
Reliability Survey
12
Emission Rates Leadership Position
Nitrogen Oxide and Sulfur Dioxide (lbs/mwh)
Carbon Dioxide(lbs/kwh)
NOx
SO2
Industry Average
Industry Average
FPL
FPL
Industry Average
FPL
2003 projected results Reflects FPL ownership
share only, purchased power not included
Electric Utility Industry projected data from
DOE's EIA Annual Energy Outlook 2003 (1/03)
13
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
• Proposed legislation - Clean Air Bill

14
FPL Value Proposition

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

• Premier utility franchise
• 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

FPL Energy operations

• 11,041 1 net MW in operation
• presence in 24 states

1 As of 12/31/03
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Diversified Portfolio at FPL EnergyYear-end 2004
(Projected)
(11,785 1 Net MW in Operation)
Regional Diversity
Fuel Diversity
Gas
58
Northeast
Central
24
35
Wind
23
Other
Mid-Atlantic
1
24
Hydro
Nuclear
Oil
West
3
9
6
17
1 As of 12/31/03
18
FPL Energy 2004 Contract Coverage
More than 90 percent of expected 2004 gross
margin hedged
Notes1 Weighted to reflect in-service dates and
planned maintenance 2 Reflects Round-the-Clock
MW 3 Reflects on-peak MW
19
Wind Portfolio Profile

• Long-term contracts (15-25 years) with
  credit-worthy off-takers
• significant value in addition to PTCs
• Superior returns
• ROEs in high teens/low 20s
• Immediately accretive and cash flow positive
• Accessed capital markets with American Wind
  financing
• validates business model
• Accessed bank market with Stateline financing
• expanded universe of lenders for wind projects

20
FPL Energy Wind Our Competitive Advantage

• Business scale (U.S. and world leader)
• Project development track record
• Quick to market (3 6 months)
• Tax appetite
• Creditworthy counterparties
• Efficient third party financing access

21
Other Projects/QF Portfolio Stable Earnings

• 1,255 MW net ownership
• 87 natural gas
• Bellingham/Sayreville and Doswell 80 of MW

Solid Long-term Contract Coverage 1
1 As of 12/31/03
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Merchant Portfolio Profile

• Premier nuclear asset in the Northeast
  Seabrook 1,024 net mw
• Low cost, efficient base load combined cycle
  units
• Gas assets well positioned in liquid,
  gas-on-margin markets
• Long-term upside potential

7,811 1 mw
1 Projected year-end 2004
23
FPL Energy Business Strategies

• Maximize value of current portfolio
• cost control
• operational reliability
• risk management
• asset optimization
• Expand our market-leading wind position
• new development
• support policy trends
• acquisitions
• explore international
• Build portfolio incrementally and selectively
• nuclear
• fossil (includes QF partners)
• criteria accretive, strategically attractive and
  financeable
• Explore gas infrastructure opportunities

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FPL Group Credit Remains Strong
S P 1 Moody's 2 FitchRatings 3
Florida Power Light Florida Power Light
Corporate Credit Rating Corporate Credit Rating A/A-1 A1 N/A
First Mortgage Bonds First Mortgage Bonds A Aa3 AA-
Commercial Paper Commercial Paper A-1 P-1 F1
Outlook Outlook Negative Stable Stable
FPL Group Capital FPL Group Capital
Corporate Credit Rating Corporate Credit Rating A/A-1 N/A N/A
Debentures Debentures A- A2 A
Commercial Paper Commercial Paper A-1 P-1 F1
Outlook Outlook Negative Negative Stable
Long-Term Goal of Maintaining an A Credit Rating
1 Ratings affirmed in Oct. 2003 2 Ratings
affirmed in Aug. 2003 3 Established initial
coverage in July 2003
26
FPL Group Schedule of Funds from Operations (FFO)
Interest Coverage
Twelve months ended 12/31/03 ( millions) Per Books Adjusted 1
Net cash provided by operating activities 2,254 2,254
Adjustments to net cash provided by operating activities
Contribution to special use funds (173) (173)
Nuclear fuel purchases (42) (42)
Total adjustments (215) (215)
Funds from operations 2,039 2,039
Interest expense paid 2
Recourse debt 289 289
Project debt Gas assets 32
Project debt Wind assets 13
Debt with partial corporate support natural gas assets 8
Dividends paid on equity units 37
Total interest expense paid 342 326
Interest coverage (x) 7.0 7.3
1 Does not include any adjustment for imputed
debt related to purchase power obligations 2
Partial year of interest for American Wind,
Stateline, Rockaway, and the Construction Funding
is included in Interest expense paid
27
FPL Group Ratio of Debt to Total
Capitalization( millions)
December 31, 2003 Per Books Adjusted 1
Debt due within one year 1,287 1,287
Long-term debt
Equity-linked debt securities 1,081
Project debt Gas assets 462
Project debt Wind assets 631
Debt with partial corporate support natural gas assets 343
Other long-term debt 6,206 6,206
Total Debt 10,010 7,493
Preferred stock of FPL w/o sinking fund requirements 5 5
Common shareholders equity 6,967 6,967
Equity-linked debt securities 1,081
Total capitalization 16,982 15,546
Debt Ratio 59 48
1 Does not include any adjustment for imputed
debt related to purchase power obligations
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Liquidity Resources

• ( millions)

Revolvers 364 Day1 3 Year2 Total
Florida Power Light Company 500 500 1,000
FPL Group Capital 1,000 1,000 2,000
Total 1,500 1,500 3,000

• FPL lead arrangers J.P. Morgan Wachovia
• FPL Group Capital lead arrangers Citibank
  Bank of America

1 Oct. 2004 maturity with one year term-out
option 2 Oct. 2006 maturity
29
FPL Group Corporate Strategies

• Support continued growth at FPL and FPL Energy
  with balanced financing plan
• maintain strong balance sheet
• maintain financial flexibility
• disciplined evaluation process for investments
• Investigate opportunities that leverage core
  strength of operational excellence
• integrated utilities
• selected generation assets
• Finance major new investments with balance of
  debt and equity
• all major new investments subject to market
  test

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Capitalizing on FPL Group Strengths

• Florida Power Light remains the core
• More than 80 of consolidated earnings
• More than 90 of forecasted capital expenditures
• FPL Energy offers attractive upside
• Capitalize on core generation skills through
  integrated operations (Fossil, wind nuclear)
• Moderate risk approach through heavily contracted
  and hedged portfolio
• Over 90 of 2004 gross margin hedged
• Capital expenditure commitments limited
  (completion of Marcus Hook Seabrook uprate
  ongoing maintenance 200 m in 04)
• Financial flexibility and liquidity are strong
• 2002-3 financing plan exceeded expectations
• Demonstrated ability to tap multiple sources of
  capital
• Wind business proven to have independent
  viability
• 1.1B of debt to be retired 3/05 and 4/06 with
  proceeds of forward equity contract
• Committed to issuing new equity to fund asset
  acquisition opportunities at FPL Energy

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Appendix
33
Cautionary Statements And Risk Factors That May
Affect Future Results

• In connection with the safe harbor provisions of
  the Reform Act, FPL Group and 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
  combined Form 10-K, in presentations, 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 PURPA, and the
  Holding Company Act, changing governmental
  policies and regulatory actions, including those
  of the FERC, the FPSC and the utility commissions
  of other states in which FPL Group has
  operations, and the 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 by FPL 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, wildlife
  mortality, 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.

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• 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.
• FPL Group's and FPL's results of operations could
  be affected by their ability to renegotiate
  franchise agreements with municipalities and
  counties in Florida.
• 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
  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 reported fair value of these contracts.  In
  addition, FPL's use of such instruments could be
  subject to prudency challenges and if found
  imprudent, cost recovery could be disallowed by
  the FPSC.
• 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, maintenance of the
  qualifying facility status of certain projects,
  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.

35

• 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.
• 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 United States, 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.

36
Strong Outlook for 2004

• FPL
• Expect earnings contribution of 4.20 - 4.35 per
  share assuming normal weather
• FPL Energy
• Expect earnings contribution of 1.05 - 1.20 per
  share
• Corporate and Other
• Net drag of 30 35 cents per share

EPS of 4.95 to 5.201
1 Excluding the effect of adopting new accounting
standards as well as the mark-to-market effect of
non-qualifying hedges which cannot be determined
at this time
37
FPL Group Earnings Performance
Adjusted EPS
GAAP EPS
CAGR 3.8
1
5.20
5.20
1
1
1
See appendix for reconciliation of GAAP to
adjusted amounts 1Excluding the effect of
adopting new accounting standards as well as the
mark-to-market effect of non-qualifying
hedges which cannot be determined at this time
38
Reconciliation GAAP to Adjusted Earnings
39
Financial Position Remains Strong

• Financial discipline
• Strong credit ratings
• Prudent dividend policy

FPL Group
As of the latest SEC filing. Includes AEE, AEP,
CEG, CIN, CMS, CNP, D, DTE, DUK, ED, EIX, ETR,
EXC, FE , FPL, PCG, PGN, PNW, PPL, SO, TE, TXU,
and XEL Source FactSet Research Systems. Figures
were downloaded on 4/15/04
40
FPL Group At-A-Glance
Rank among U.S. Electric Utilities
(In USD millions, except per share amounts) (In USD millions, except per share amounts)
Recent Stock Price Recent Stock Price 63.70 63.70
Market Capitalization 11,738 11,738 11,738 8
Enterprise Value Enterprise Value Enterprise Value 21,624 10
Generating Capacity (mw) Generating Capacity (mw) Generating Capacity (mw) 30,097 4
Utility Customer Accounts (thousands) Utility Customer Accounts (thousands) Utility Customer Accounts (thousands) 4,117 3
Annualized Dividend per Share (USD) Annualized Dividend per Share (USD) Annualized Dividend per Share (USD) 2.48
Current Yield () Current Yield () Current Yield () 3.9
Payout Ratio () Payout Ratio () Payout Ratio () 48


Market data as of 4/15/04. See appendix for
reconciliation of GAAP to adjusted amounts
41
Performance Rewarded in Capital MarketsIndexed
Return Since 12/31/98
FPL Group
27.4
Dow Jones Utilities Index
7.9
(1.0)
SP 500 Index
42
Major Awards and Honors

• 2003 Edison Award
• The electric power industry's highest honor
  recognizing the company's success in executing a
  strategy to become a clean energy provider
  harnessing primarily clean and renewable fuels
  while also boosting shareholder value
• Platt's 2003 Global Energy Reward as "Renewable
  Company of the Year" for the company's clean
  energy portfolio
• North American Renewables Deal of the Year for
  2003
• FPL Energy American Wind
• North American Power Portfolio Deal of the Year
  for 2003
• FPL Energy Construction Portfolio Financing
• 2004 "Companies that Care Honor Roll
• One of 12 companies nationwide recognized for
  outstanding and measurable commitment to their
  communities, both within the workplace and beyond
• Center of Excellence certification from Purdue
  Universitys Center for Customer-Driven Quality
• The only electric utility to be honored
• Award places the companys customer care centers
  at near world-class status
• J.D. Power and Associates Annual Customer
  Satisfaction Survey
• Rated FPL second highest in the southern region
  in overall customer satisfaction
• Rated FPL 10th best nationally in overall
  customer satisfaction
• Innovest Report
• FPL ranked number one among 26 electric utilities
  in the latest Innovest Strategic Value Advisors
  report that compares environmental performance
• FPL ranked number two among 26 electric utilities
  in the latest Intangible Value Assessment report
  which ranks companies on drivers related to
  sustainability, which include corporate labor
  relations, emerging market strategy, products and
  services, and overall corporate governance