FPL Group Posts 3Q Profit Drop, Cuts Outlook

JUNO BEACH, Fla. (AP) — Power-plant operator FPL Group Inc. on Tuesday said its third-quarter profit fell 31 percent mostly due to dismal economic conditions in Florida, a challenge, among many, that prompted the company to slash its 2009 and 2010 adjusted earnings outlook.

FPL said the economy in Florida led to a continued decline in customers, hurting results for its Florida Power & Light unit. The rate-regulated utility subsidiary had about 9,000 fewer customers in the most-recent quarter, compared with customer levels in the same period last year. The number of inactive accounts rose by 4,000 since the end of the second quarter of 2009.

Third-quarter adjusted earnings for its other subsidiary, NextEra Energy Resources, rose 21 percent from a year ago due to the company's investment in new wind-energy projects. This includes the positive effects of the American Recovery and Reinvestment Act, which allows the company to take the value of federal wind-production tax credits in the form of cash grants. NextEra is the competitive energy subsidiary of FPL Group with generating facilities in 25 states and Canada.

Quarterly earnings declined to $533 million, or $1.31 per share, compared with $774 million, or $1.92 per share, last year.