FPL Group, Inc. (NYSE:FPL) today reported 2010 first quarter net income on a GAAP basis of $556 million, or $1.36 per share, compared with $364 million, or $0.90 per share, in the first quarter of 2009. On an adjusted basis, FPL Group’s earnings were $386 million, or $0.94 per share, compared with $364 million, or $0.90 per share, in the first quarter of 2009. Adjusted earnings exclude the mark-to-market effects of non-qualifying hedges and the net effect of other than temporary impairments (OTTI) on certain investments, both of which relate to NextEra Energy Resources.

FPL Group management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and as input in determining whether certain performance targets are met for performance-based compensation under the company’s employee incentive compensation plans. FPL Group also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. FPL Group management believes that adjusted earnings provide a more meaningful representation of FPL Group’s fundamental earnings power. The attachments to this news release include a reconciliation of historical adjusted earnings to net income, which is the most directly comparable GAAP measure.

“Although we continue to be challenged by the economic environment in the United States and Florida, we are pleased to report a more than 4 percent increase in adjusted earnings per share for the quarter. FPL Group experienced contrasting weather effects in the quarter, with a weak wind resource at NextEra Energy Resources partially offset by increased demand for electricity at Florida Power & Light as a result of unseasonably cold weather in Florida. Revenue recovery associated with the West County Energy Center units 1 and 2 contributed to FPL’s results as well. Our customers are benefitting significantly from the addition of these units because they are among the most fuel efficient, most reliable and cleanest of their kind in the country,” said FPL Group Chairman and CEO Lew Hay.

Florida Power & Light Company

FPL Group's rate-regulated utility subsidiary, Florida Power & Light Company, reported first quarter net income of $191 million, or $0.47 per share, compared with $127 million, or $0.31 per share, for the prior-year quarter. Retail energy sales increased 6.6 percent for the quarter on a year-over-year basis, and usage per customer increased 6.4 percent.

FPL’s results were driven by colder-than-normal weather, which led to an increase of $0.08 per share compared with last year’s first quarter. On Jan. 11, 2010, FPL’s electrical system performed well in meeting an all-time record peak customer demand of 24,346 megawatt hours. FPL’s revenue in the quarter also increased as a result of the addition of West County Energy Center units 1 and 2, which were not yet in operation during last year’s comparable quarter.

In other activity during the quarter, FPL and the U.S. Department of Energy in March finalized the contract for a federal Smart Grid Investment Grant award to support FPL's Energy Smart Florida project, enabling the company to accelerate the installation of 4.5 million smart meters and add intelligent devices and other advanced monitoring equipment to its transmission and distribution network. Customers are expected to benefit from having more information to help them better manage their energy usage. Other expected customer benefits in the near term include enhanced customer service, better outage prevention and identification, and faster service restoration.

Earlier this month, FPL commissioned the Space Coast Next Generation Solar Energy Center at NASA’s Kennedy Space Center. The solar photovoltaic power facility produces an estimated 10 megawatts of clean, emissions-free power, enough to serve approximately 1,100 homes. Over the life of the project, the facility is expected to reduce carbon dioxide emissions by more than 227,000 tons, the equivalent of removing 1,800 cars from the road each year. It is also expected to save approximately 122,000 barrels of oil and 2.8 billion cubic feet of natural gas over the life of the facility.

NextEra Energy Resources

NextEra Energy Resources, the competitive energy business of FPL Group with generating facilities in 26 states and Canada, reported first quarter net income on a GAAP basis of $367 million, or $0.89 per share, compared with $228 million, or $0.56 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources’ earnings were $196 million, or $0.47 per share, compared with $228 million, or $0.56 per share, in the first quarter of 2009.

NextEra Energy Resources added 1,360 megawatts of new wind projects since the first quarter of 2009, contributing $11.7 million in adjusted earnings, or $0.03 cents per share on a year-over-year basis. Shortly after the quarter ended, NextEra Energy Resources was awarded 148 megawatts of wind projects in Ontario, Canada, as part of the province’s feed-in tariff program.

NextEra Energy Resources’ existing wind assets were negatively impacted by about $48 million, or $0.12 cents per share, compared with the prior-year quarter, primarily due to a lower wind resource. In addition, the company benefited from state investment tax credits on certain wind projects in the first quarter of 2009 without a corresponding benefit this year. NextEra Energy Resources’ merchant assets in the New England Power Pool improved over the prior year’s quarter by approximately $13 million, or $0.03 per share, but those results were roughly offset by poor market conditions and a planned maintenance outage that negatively impacted the company’s natural gas assets in Texas by $11.2 million, or $0.03 per share.

NextEra Energy Resources’ power marketing and trading business contributed roughly $0.03 per share this quarter in excess of its contribution from last year’s comparable quarter.

NextEra Energy Resources’ operational performance continued to be among the industry’s best in the first quarter. For example, the forced outage rate of its fossil fleet was best in class for the industry based on available data and the forced outage rate of its wind fleet was one of the best ever and continues to lead the industry.

In the first quarter of 2010, FPL Group revised the methodology for allocating interest and shared service costs between NextEra Energy Resources and the Corporate and Other segment. Prior period amounts for these segments have been revised to be consistent with this methodology.

Recently, NextEra Energy Resources has re-evaluated the impact of current market conditions on its wind pipeline and now expects that wind build additions will be between 600 and 850 megawatts in 2010, excluding any wind assets, if any, the company may acquire during the year. This estimated range is down from a prior expectation of about 1,000 megawatts of wind build in the year.

Corporate and Other

Corporate and Other recorded a loss of $2 million in the first quarter of 2010 compared to a gain of $9 million in the first quarter of 2009, primarily due to increased interest expense.

Outlook

FPL Group continues to expect it will deliver adjusted earnings per share for 2010 in the range of $4.25 to $4.65.

FPL Group’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges and net other than temporary impairment losses on securities held in NextEra Energy Resources’ nuclear decommissioning funds, none of which can be determined at this time. In addition, FPL Group’s adjusted earnings expectations assume, among other things: normal weather and operating conditions; no further significant decline in the national or the Florida economy; supportive commodity markets; public policy support for wind and solar development and construction; market demand and supply chain expansion for wind and solar; transmission expansion to support wind and solar development; access to capital at reasonable cost and terms; and no acquisitions. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

As previously announced, FPL Group’s first-quarter earnings conference call is scheduled for 9 a.m. ET on Tuesday, April 27, 2010. The webcast is available on FPL Group’s website by accessing the following link, http://www.FPLGroup.com/investor/contents/investor_index.shtml. The slides and earnings release accompanying the presentation may be downloaded at www.FPLGroup.com beginning at 7:30 a.m. ET today. For people unable to listen to the live webcast, a replay will be available for 90 days by accessing the same link as listed above.

This news release should be read in conjunction with the attached unaudited financial information.

FPL Group: Energy Solutions for the Next Era

FPL Group, Inc. (NYSE:FPL) is a leading clean energy company with 2009 revenues of more than $15 billion, nearly 43,000 megawatts of generating capacity, and more than 15,000 employees in 28 states and Canada. Headquartered in Juno Beach, Fla., FPL Group’s principal subsidiaries are NextEra Energy Resources, LLC, the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves approximately 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country. Through its subsidiaries, FPL Group collectively operates the third largest U.S. nuclear power generation fleet. For more information about FPL Group companies, visit these websites: www.FPLGroup.com, www.NextEraEnergyResources.com, www.FPL.com.

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 providing 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 news release, on their respective websites, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance, climate change strategy or growth strategies (often, but not always, through the use of words or phrases such as will, will likely result, are expected to, will continue, is anticipated, aim, believe, could, should, would, estimated, may, plan, potential, projection, target, outlook, predict and intend or words of similar meaning) 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 or implied 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, including unanticipated events, after the date on which such statement is made, unless otherwise required by law. 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 or implied 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 or implied in the forward-looking statements:

FPL Group and FPL are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions. FPL holds franchise agreements with local municipalities and counties, and must renegotiate expiring agreements. These factors may have a negative impact on the business and results of operations of FPL Group and FPL.
  • FPL Group and FPL are subject to complex laws and regulations, and to changes in laws or regulations, with respect to, among other things, allowed rates of return, industry and rate structure, operation of nuclear power facilities, construction and operation of generation facilities, construction and operation of transmission and distribution facilities, acquisition, disposal, depreciation and amortization of assets and facilities, recovery of fuel, purchased power and environmental costs, decommissioning costs, return on common equity and equity ratio limits, transmission reliability and present or prospective wholesale and retail competition. This substantial and complex framework exposes FPL Group and FPL to increased compliance costs and potentially significant monetary penalties for non-compliance. The Florida Public Service Commission (FPSC) has the authority to disallow recovery by FPL of any and all 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 also are subject to extensive federal, state and local environmental statutes, rules and regulations, as well as the effect of changes in or additions to applicable statutes, rules and regulations that relate to, or in the future may relate to, for example, air quality, water quality, climate change, greenhouse gas (GHG) emissions, carbon dioxide (CO 2) emissions, radioactive emissions, waste management, marine and wildlife mortality, natural resources, health, safety and renewable portfolio standards 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 require additional pollution control equipment and otherwise 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. Violations of certain of these statutes, rules and regulations could expose FPL Group and FPL to third-party disputes and potentially significant monetary penalties for non-compliance.
  • FPL Group and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives regarding regulation, deregulation or restructuring of the energy industry, including, for example, deregulation or restructuring of the production and sale of electricity, as well as increased focus on renewable and clean energy sources and reduction of CO 2 emissions and other GHG emissions. FPL Group and its subsidiaries will need to adapt to these changes and may face increasing costs and competitive pressure in doing so.
  • FPL Group's and FPL's results of operations could be affected by FPL's ability to negotiate or renegotiate franchise agreements with municipalities and counties in Florida.

The operation and maintenance of power generation, transmission and distribution facilities involve significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.
  • The operation and maintenance of power generation, transmission and distribution facilities involve many risks, including, for example, start up risks, breakdown or failure of equipment, transmission and distribution lines or pipelines and the availability of replacement equipment, the inability to properly manage or mitigate known equipment defects throughout FPL Group's and FPL's generation fleets and transmission and distribution systems, use of new or unproven technology, the dependence on a specific fuel source, failures in the supply or transportation of fuel, the impact of unusual or adverse weather conditions (including natural disasters such as hurricanes, floods and droughts), and performance below expected or contracted levels of output or efficiency. This could result in lost revenues and/or increased expenses, including, for example, lost revenues due to prolonged outages and increased expenses due to monetary penalties or fines, replacement equipment costs or an obligation to purchase or generate replacement power at potentially higher prices to meet contractual obligations. Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses. Breakdown or failure of an operating facility of NextEra Energy Resources, LLC (NextEra Energy Resources) may, for example, prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of the agreement or subject NextEra Energy Resources to incurring a liability for liquidated damages.

The operation and maintenance of nuclear facilities involves inherent risks, including environmental, health, regulatory, terrorism and financial risks, that could result in fines or the closure of nuclear units owned by FPL or NextEra Energy Resources, and which may present potential exposures in excess of insurance coverage.
  • FPL and NextEra Energy Resources own, or hold undivided interests in, nuclear generation facilities in four states. These nuclear facilities are subject to environmental, health and financial risks such as on-site storage of spent nuclear fuel, the ability to dispose of spent nuclear fuel, the ability to maintain adequate reserves for decommissioning, potential liabilities arising out of the operation of these facilities, and the threat of a possible terrorist attack. Although FPL and NextEra Energy Resources maintain decommissioning funds and external insurance coverage to minimize the financial exposure to these risks, it is possible that the cost of decommissioning the facilities could exceed the amount available in the decommissioning funds, and that liability and property damages could exceed the amount of insurance coverage.
  • The U.S. Nuclear Regulatory Commission (NRC) has broad authority to impose licensing and safety-related requirements for the construction and operation and maintenance of nuclear generation facilities. In the event of non-compliance, the NRC has the authority to impose fines or shut down a unit, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. NRC orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require FPL and NextEra Energy Resources to incur substantial operating and capital expenditures at their nuclear plants. In addition, if a serious nuclear incident were to occur at an FPL or NextEra Energy Resources plant, it could result in substantial costs. A major incident at a nuclear facility anywhere in the world could cause the NRC to limit or prohibit the operation or licensing of any domestic nuclear unit.
  • In addition, potential terrorist threats and increased public scrutiny of utilities could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict.

The construction of, and capital improvements to, power generation and transmission facilities involve substantial risks. Should construction or capital improvement efforts be unsuccessful or delayed, the results of operations and financial condition of FPL Group and FPL could be adversely affected.
  • The ability of FPL Group and FPL to complete construction of, and capital improvement projects for, their power generation and transmission facilities on schedule and within budget are contingent upon many variables that could delay completion, increase costs or otherwise adversely affect operational and financial results, including, for example, limitations related to transmission interconnection issues, escalating costs for materials and labor and environmental compliance, delays with respect to permits and other approvals, and disputes involving third parties, and are subject to substantial risks. Should any such efforts be unsuccessful or delayed, FPL Group and FPL could be subject to additional costs, termination payments under committed contracts, loss of tax credits and/or the write-off of their investment in the project or improvement.

The use of derivative contracts by FPL Group and FPL in the normal course of business could result in financial losses or the payment of margin cash collateral that could adversely impact the results of operations or cash flows of FPL Group and FPL.
  • FPL Group and FPL use derivative instruments, such as swaps, options, futures and forwards, some of which are traded in the over-the-counter markets or on exchanges, to manage their commodity and financial market risks, and for FPL Group to engage in trading and marketing activities. FPL Group could recognize financial losses as a result of volatility in the market values of these derivative instruments, or if a counterparty fails to perform or make payments under these derivative instruments and could suffer a reduction in operating cash flows as a result of the requirement to post margin cash collateral. 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 derivative instruments. In addition, FPL's use of such instruments could be subject to prudence challenges and, if found imprudent, cost recovery could be disallowed by the FPSC.
  • FPL Group provides full energy and capacity requirement services, which include load-following services and various ancillary services, primarily to distribution utilities to satisfy all or a portion of such utilities' power supply obligations to their customers. The supply costs for these transactions may be affected by a number of factors, including by events that may occur after FPL Group has committed to supply power, such as weather conditions, fluctuating prices for energy and ancillary services, and the ability of the distribution utilities’ customers to elect to receive service from competing suppliers. If the supply costs are not favorable, FPL Group’s operating costs could increase and result in the possibility of reduced earnings or incurring losses.
  • FPL Group and FPL have hedging procedures and associated risk management tools that may not work as planned. Risk management tools and metrics such as daily value at risk, earnings at risk, stop loss limits and liquidity guidelines are based on historical price movements. If price movements significantly or persistently deviate from historical behavior, the risk management tools may not protect against significant losses. As a result of these and other factors, FPL Group and FPL cannot predict with precision the impact that risk management decisions may have on financial results.

FPL Group's competitive energy business is subject to risks, many of which are beyond the control of FPL Group, including, but not limited to, the efficient development and operation of generating assets, the successful and timely completion of project restructuring activities, the price and supply of fuel and equipment, transmission constraints, competition from other generators, including those using new sources of generation, excess generation capacity and demand for power, that may reduce revenues, increase costs or otherwise adversely impact the results of operations and financial condition of FPL Group.
  • There are various risks associated with FPL Group's competitive energy business. In addition to risks discussed elsewhere, risk factors specifically affecting NextEra Energy Resources' success in competitive wholesale markets include, for example, 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 (including transportation) and equipment, transmission constraints, the ability to utilize production tax credits or qualify for convertible investment tax credits, competition from other and new sources of generation, excess generation capacity and shifting demand for power. There can be significant volatility in market prices for fuel, electricity and renewable and other energy commodities, and there are other financial, counterparty and market risks that are beyond the control of NextEra Energy Resources. NextEra Energy Resources' 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 FPL Group's future financial results. A portion of NextEra Energy Resources' 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 increase the volatility of FPL Group's financial results. In addition, NextEra Energy Resources' business depends upon power transmission and natural gas transportation facilities owned and operated by others; if transmission or transportation is disrupted or capacity is inadequate or unavailable, NextEra Energy Resources' ability to sell and deliver its wholesale power or natural gas may be limited.

FPL Group's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry.
  • 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 general. In addition, FPL Group may be unable to identify attractive acquisition opportunities at favorable prices and to complete and integrate them successfully and in a timely manner.

FPL Group and FPL participate in markets that are often subject to uncertain economic conditions, which makes it difficult to estimate growth, future income and expenditures.
  • FPL Group and FPL participate in markets that are susceptible to uncertain economic conditions, which complicate estimates of revenue growth. Because components of budgeting and forecasting are dependent upon estimates of revenue growth in the markets FPL Group and FPL serve, the uncertainty makes estimates of future income and expenditures more difficult. As a result, FPL Group and FPL may make significant investments and expenditures but never realize the anticipated benefits, which could adversely affect results of operations. The future direction of the overall economy also may have a significant effect on the overall performance and financial condition of FPL Group and FPL.

Changes in the number of customer accounts and customer usage in FPL's service area affect FPL Group's and FPL's results of operations.
  • FPL Group's and FPL's results of operations are affected by the change in the number of customer accounts in FPL's service area and customer usage. Changes in the number of customer accounts can be affected by growth or decline in population. Changes in the number of customer accounts and customer usage can be affected by economic factors in Florida and elsewhere, including, for example, job and income growth or decline, housing starts and new home prices. Changes in the number of customer accounts and customer usage directly influence the demand for electricity and the need, or lack of need, for additional power generation and power delivery facilities at FPL.

Weather affects FPL Group's and FPL's results of operations, as can the impact of severe weather. Weather conditions directly influence the demand for electricity and natural gas, affect the price of energy commodities, and can affect the production of electricity at power generating facilities.
  • FPL Group's and FPL's results of operations are affected by changes in the weather. Weather conditions directly influence the demand for electricity and natural gas, affect the price of energy commodities, and can affect the production of electricity at power generating facilities, including, but not limited to, wind, solar and hydro-powered facilities. FPL Group's and FPL's results of operations can be affected by the impact of severe weather which can be destructive, causing outages and/or property damage, may affect fuel supply, and could require additional costs to be incurred. At FPL, recovery of these costs is subject to FPSC approval.

FPL Group and FPL rely on access to capital and credit markets as significant sources of liquidity for capital requirements not satisfied by operating cash flows. Adverse capital and credit market conditions may adversely affect FPL Group's and FPL's ability to meet liquidity needs, access capital and operate and grow their businesses, and increase the cost of capital. Disruptions, uncertainty or volatility in the financial markets can also adversely impact the results of operations and financial condition of FPL Group and FPL, as well as exert downward pressure on the market price of FPL Group's common stock.
  • Having access to the credit and capital markets, at a reasonable cost, is necessary for FPL Group and FPL to fund their operations, including their capital requirements. Those markets have provided FPL Group and FPL with the liquidity to operate and grow their businesses that is not otherwise provided from operating cash flows. Disruptions, uncertainty or volatility in those markets can increase FPL Group's and FPL's cost of capital. If FPL Group and FPL are unable to access the credit and capital markets on terms that are reasonable, they may have to delay raising capital, issue shorter-term securities and/or bear an unfavorable cost of capital, which, in turn, could adversely impact their ability to grow their businesses, decrease earnings, significantly reduce financial flexibility and/or limit FPL Group's ability to sustain its current common stock dividend level.
  • The market price and trading volume of FPL Group's common stock could be subject to significant fluctuations due to, among other things, general stock market conditions and changes in market sentiment regarding FPL Group and its subsidiaries' operations, business, growth prospects and financing strategies.

FPL Group's, FPL Group Capital Inc's (FPL Group Capital) and FPL's inability to maintain their current credit ratings may adversely affect FPL Group's and FPL's liquidity, limit the ability of FPL Group and FPL to grow their businesses, and would likely increase interest costs. In addition, FPL Group's, FPL Group Capital's or FPL's credit providers' inability to maintain their current credit ratings, or to fund their credit commitments, may adversely affect FPL Group's and FPL's liquidity.
  • The inability of FPL Group, FPL Group Capital and FPL to maintain their current credit ratings could affect their ability to raise capital or obtain credit on favorable terms, which, in turn, could impact FPL Group's and FPL's ability to grow their businesses, service indebtedness or repay borrowings, and would likely increase their interest costs. Some of the factors that can affect credit ratings are cash flows, liquidity, the amount of debt as a component of total capitalization, and political, legislative and regulatory actions. FPL Group, FPL Group Capital or FPL cannot assure that their current credit ratings will remain in effect for any given period of time or that one or more of its ratings will not be lowered or withdrawn entirely by a rating agency.
  • The inability of FPL Group's, FPL Group Capital's and FPL's credit providers to maintain credit ratings acceptable under various agreements, or to fund their credit commitments, could require FPL Group, FPL Group Capital or FPL to, among other things, renegotiate requirements in agreements, find an alternative credit provider with acceptable credit ratings to meet the requirement, or post cash collateral.

FPL Group may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to FPL Group.
  • FPL Group is a holding company and, as such, has no material operations of its own. Substantially all of FPL Group's consolidated assets are held by subsidiaries. FPL Group’s ability to meet its financial obligations and to pay dividends on its common stock is primarily dependent on the subsidiaries’ net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends or to repay funds to FPL Group. The subsidiaries have financial obligations, including payment of debt service, which they must satisfy before they can fund FPL Group. FPL Group’s subsidiaries are separate legal entities and have no obligation to provide FPL Group with funds for its payment obligations. In addition, the dividend-paying ability of some of the subsidiaries is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements.

Changes in tax laws, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could adversely affect FPL Group's and FPL's results of operations, financial condition and liquidity.
  • FPL Group's and FPL's provision for income taxes and reporting of tax-related assets and liabilities requires significant judgments and the use of estimates. Amounts of tax-related assets and liabilities involve judgments and estimates of the timing and probability of recognition of income, deductions and tax credits, including estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax credit carryforwards. Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, regulations and interpretations, financial condition and results of operations of FPL Group and its subsidiaries, including FPL, as well as the resolution of audit issues raised by taxing authorities. Ultimate resolution of income tax matters may result in material adjustments to tax-related assets and liabilities which could impact, either positively or negatively, FPL Group's and FPL's results of operations, financial condition and liquidity. FPL Group and FPL are subject to credit and performance risk from third parties under supply and service contracts.FPL Group and FPL rely on contracts with vendors for the supply of equipment, materials, fuel and other goods and services required for the construction and operation of, and for capital improvements to, their facilities, as well as for business operations. If vendors fail to fulfill their contractual obligations, FPL Group and FPL may need to make arrangements with other suppliers, which could result in higher costs, untimely completion of power generation facilities and other projects, and/or a disruption to their operations. FPL Group and FPL are subject to costs and other potentially adverse effects of legal and regulatory proceedings as well as regulatory compliance and changes in or additions to applicable tax laws, rates or policies, rates of inflation, accounting standards, securities laws, corporate governance requirements and labor and employment laws.
  • FPL Group and FPL are subject to costs and other potentially adverse effects of legal and regulatory proceedings, settlements, investigations and claims, as well as regulatory compliance and the effect of new, or changes in, tax laws, rates or policies, rates of inflation, accounting standards and interpretations, securities laws, corporate governance requirements and labor and employment laws.
  • FPL and NextEra Energy Resources, as owners and operators of transmission systems and/or critical assets within various regions throughout the United States, are subject to mandatory reliability standards established by the North American Electric Reliability Corporation. Non-compliance with these mandatory reliability standards could result in sanctions, including substantial monetary penalties.

Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt FPL Group's and FPL's business may impact the operations of FPL Group and FPL in unpredictable ways and could adversely affect FPL Group’s and FPL’s results of operations, financial condition and liquidity.
  • FPL Group and FPL are subject to direct and indirect effects of terrorist threats and activities, as well as cyber attacks and disruptive activities of individuals and/or groups. Infrastructure facilities and systems, such as generation, transmission and distribution facilities and information systems, have been identified as potential targets. The effects of these threats and activities could affect FPL Group's and FPL's ability to generate, purchase or transmit power, could cause delays in FPL Group's and FPL's development and construction of new generating facilities, could result in a significant slowdown in growth or a decline in the U.S. economy, could delay an economic recovery in the United States, and could increase the cost and adequacy of security and insurance, which could adversely affect FPL Group’s and FPL’s results of operations, financial condition and liquidity. In addition, these types of events could disrupt FPL Group’s or FPL’s operations, require significant management attention and resources, and could adversely affect FPL Group's and FPL's reputation among customers and the public.

The ability of FPL Group and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers.
  • FPL Group's and FPL's ability to obtain insurance, and the cost of and coverage provided by such insurance, could be adversely affected by international, national, state or local events as well as company-specific events, as well as the financial condition of insurers.

FPL Group and FPL are subject to employee workforce factors that could adversely affect the businesses and financial condition of FPL Group and FPL.
  • FPL Group and FPL are subject to employee workforce factors, including, for example, loss or retirement of key executives, availability of qualified personnel, inflationary pressures on payroll and benefits costs and collective bargaining agreements with union employees and work stoppage that could adversely affect the businesses and financial condition of FPL Group and FPL.

The risks described herein are not the only risks facing FPL Group and FPL. Additional risks and uncertainties also may materially adversely affect FPL Group's or FPL's business, financial condition and/or future operating results.

NOTE TO EDITORS: This news release reflects the earnings report of FPL Group, Inc. Reference to the corporation and its earnings or financial results should be to “FPL Group” and not abbreviated using the name “FPL” as the latter is the name/acronym of the corporation’s electric utility subsidiary.

 
FPL Group, Inc.

Preliminary Condensed Consolidated Statements of Income

(millions, except per share amounts)

(unaudited)
 
Three Months Ended March 31, 2010   Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
           
Operating Revenues $ 2,328 $ 1,247 $ 47 $ 3,622
 
Operating Expenses
Fuel, purchased power and interchange 1,107 220 22 1,349
Other operations and maintenance 373 277 9 659
Depreciation and amortization 229 180 5 414
Taxes other than income taxes and other   226       34       1       261  
 
Total operating expenses   1,935       711       37       2,683  
 
 
Operating Income (Loss)   393       536       10       939  
 
Other Income (Deductions)
Interest expense (87 ) (127 ) (24 ) (238 )
Equity in earnings of equity method investees - 7 - 7
Allowance for equity funds used during construction 7 - - 7
Interest income - 5 13 18
Gains on disposal of assets - net - 39 - 39

Other than temporary impairment losses on securities held in nuclear decommissioning funds
- (1 ) - (1 )
Other – net   (1 )     (1 )     1       (1 )
 
Total other income (deductions) – net   (81 )     (78 )     (10 )     (169 )
 
 
Income (Loss) Before Income Taxes 312 458 - 770
Income Tax Expense (Benefit)   121       91       2       214  
 
Net Income (Loss) $ 191     $ 367     $ (2 )   $ 556  
 
 
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):
Net Income (Loss) $ 191 $ 367 $ (2 ) $ 556
Adjustments, net of income taxes:

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges
- (167 ) 1 (166 )
Other than temporary impairment losses - net   -       (4 )     -       (4 )
 
Adjusted Earnings (Loss) $ 191     $ 196     $ (1 )   $ 386  
 
 
Earnings (Loss) Per Share (assuming dilution) $ 0.47 $ 0.89 $ - $ 1.36
Adjustments:
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges - (0.41 ) - (0.41 )
Other than temporary impairment losses - net   -       (0.01 )     -       (0.01 )
 
Adjusted Earnings (Loss) Per Share $ 0.47     $ 0.47     $ -     $ 0.94  
 
Weighted-average shares outstanding (assuming dilution) 410
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Condensed Consolidated Statements of Income

(millions, except per share amounts)

(unaudited)
 
Three Months Ended March 31, 2009   Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
 
Operating Revenues $ 2,573 $ 1,089 $ 43 $ 3,705
 
Operating Expenses
Fuel, purchased power and interchange 1,469 324 18 1,811
Other operations and maintenance 340 266 12 618
Depreciation and amortization 251 154 4 409
Taxes other than income taxes and other   251       32       1       284  
 
Total operating expenses   2,311       776       35       3,122  
 
 
Operating Income (Loss)   262       313       8       583  
 
Other Income (Deductions)
Interest expense (77 ) (117 ) (17 ) (211 )
Equity in earnings of equity method investees - 7 - 7
Allowance for equity funds used during construction 15 - - 15
Interest income - 6 21 27
Gains on disposal of assets - net - 7 - 7

Other than temporary impairment losses on securities held in nuclear decommissioning funds
- (53 ) - (53 )
Other – net   (2 )     -       10       8  
 
Total other income (deductions) – net   (64 )     (150 )     14       (200 )
 
 
Income (Loss) Before Income Taxes 198 163 22 383
Income Tax Expense (Benefit)   71       (65 )     13       19  
 
Net Income (Loss) $ 127     $ 228     $ 9     $ 364  
 
 
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss):
Net Income (Loss) $ 127 $ 228 $ 9 $ 364
Adjustments, net of income taxes:

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges
- (30 ) - (30 )
Other than temporary impairment losses - net   -       30       -       30  
 
Adjusted Earnings (Loss) $ 127     $ 228     $ 9     $ 364  
 
 
Earnings (Loss) Per Share (assuming dilution) $ 0.31 $ 0.56 $ 0.03 $ 0.90
Adjustments:

Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges
- (0.07 ) - (0.07 )
Other than temporary impairment losses - net   -       0.07       -       0.07  
 
Adjusted Earnings (Loss) Per Share $ 0.31     $ 0.56     $ 0.03     $ 0.90  
 
Weighted-average shares outstanding (assuming dilution) 405
 
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Condensed Consolidated Balance Sheets

(millions)

(unaudited)
 
March 31, 2010   Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
         
Property, Plant and Equipment
Electric utility plant in service and other property $ 28,819 $ 17,449 $ 318 $ 46,586
Nuclear fuel 719 686 1 1,406
Construction work in progress 1,958 1,283 34 3,275
Less accumulated depreciation and amortization   (10,692 )     (3,545 )     (176 )     (14,413 )
 
Total property, plant and equipment – net   20,804       15,873       177       36,854  
 
 
Current Assets
Cash and cash equivalents 590 145 480 1,215
Customer receivables, net of allowances 646 508 20 1,174
Other receivables, net of allowances 149 482 141 772
Materials, supplies and fossil fuel inventory 517 331 4 852
Regulatory assets:
Deferred clause and franchise expenses 86 - - 86
Securitized storm-recovery costs 71 - - 71
Derivatives 430 - - 430
Other - - 3 3
Derivatives 11 603 (3 ) 611
Other   124       465       (246 )     343  
 
Total current assets   2,624       2,534       399       5,557  
 
 
Other Assets
Special use funds 2,485 1,024 - 3,509
Other investments 4 234 732 970
Prepaid benefit costs 1,031 - 173 1,204
Regulatory assets:
Securitized storm-recovery costs 617 - - 617
Deferred clause expenses 23 - - 23
Unamortized loss on reacquired debt 28 - - 28
Derivatives 43 - - 43
Other 214 - 51 265
Other   180       1,243       449       1,872  
 
Total other assets   4,625       2,501       1,405       8,531  
 
 
Total Assets $ 28,053     $ 20,908     $ 1,981     $ 50,942  
 
 
Capitalization
Common stock $ 1,373 $ - $ (1,369 ) $ 4
Additional paid-in capital 4,393 7,801 (7,110 ) 5,084
Retained earnings 2,861 3,393 1,837 8,091
Accumulated other comprehensive income (loss)   -       161       (4 )     157  
 
Total common shareholders' equity 8,627 11,355 (6,646 ) 13,336
Long-term debt   6,275       4,217       6,109       16,601  
 
Total capitalization   14,902       15,572       (537 )     29,937  
 
 
Current Liabilities
Commercial paper 994 - 1,523 2,517
Notes payable 250 - 168 418
Current maturities of long-term debt 43 334 600 977
Accounts payable 544 372 21 937
Customer deposits 621 7 - 628
Accrued interest and taxes 298 297 (134 ) 461
Regulatory liabilities:
Deferred clause and franchise revenues 24 - - 24
Pension - - 2 2
Derivatives 441 331 - 772
Other   495       562       (11 )     1,046  
 
Total current liabilities   3,710       1,903       2,169       7,782  
 
 
Other Liabilities and Deferred Credits
Asset retirement obligations 1,856 556 1 2,413
Accumulated deferred income taxes 3,633 1,393 57 5,083
Regulatory liabilities:
Accrued asset removal costs 2,249 - - 2,249
Asset retirement obligation regulatory expense difference 714 - - 714
Pension - - 15 15
Other 278 - - 278
Derivatives 47 314 8 369
Other   664       1,170       268       2,102  
 
Total other liabilities and deferred credits   9,441       3,433       349       13,223  
 
 
Commitments and Contingencies
 
Total Capitalization and Liabilities $ 28,053     $ 20,908     $ 1,981     $ 50,942  
 
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Condensed Consolidated Balance Sheets

(millions)

(unaudited)
       
December 31, 2009  

Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
 
Property, Plant and Equipment
Electric utility plant in service and other property $ 28,677 $ 17,343 $ 310 $ 46,330
Nuclear fuel 756 657 1 1,414
Construction work in progress 1,549 844 32 2,425
Less accumulated depreciation and amortization   (10,578 )     (3,341 )     (172 )     (14,091 )
 
Total property, plant and equipment – net   20,404       15,503       171       36,078  
 
 
Current Assets
Cash and cash equivalents 83 118 37 238
Customer receivables, net of allowances 838 574 19 1,431
Other receivables, net of allowances 182 532 102 816
Materials, supplies and fossil fuel inventory 529 345 3 877
Regulatory assets:
Deferred clause and franchise expenses 69 - - 69
Securitized storm-recovery costs 69 - - 69
Derivatives 68 - - 68
Other - - 3 3
Derivatives 10 348 (1 ) 357
Other   113       505       (209 )     409  
 
Total current assets   1,961       2,422       (46 )     4,337  
 
 
Other Assets
Special use funds 2,408 982 - 3,390
Other investments 5 229 701 935
Prepaid benefit costs 1,017 - 167 1,184
Regulatory assets:
Securitized storm-recovery costs 644 - - 644
Deferred clause expenses - - - -
Unamortized loss on reacquired debt 29 - - 29
Derivatives - - - -
Other 185 - 51 236
Other   159       1,000       466       1,625  
 
Total other assets   4,447       2,211       1,385       8,043  
 
 
Total Assets $ 26,812     $ 20,136     $ 1,510     $ 48,458  
 
 
Capitalization
Common stock $ 1,373 $ - $ (1,369 ) $ 4
Additional paid-in capital 4,393 7,923 (7,261 ) 5,055
Retained earnings 2,670 3,032 2,037 7,739
Accumulated other comprehensive income (loss)   -       172       (3 )     169  
 
Total common shareholders' equity 8,436 11,127 (6,596 ) 12,967
Long-term debt   5,794       3,995       6,511       16,300  
 
Total capitalization   14,230       15,122       (85 )     29,267  
 
 
Current Liabilities
Commercial paper 818 - 1,202 2,020
Notes payable - - - -
Current maturities of long-term debt 42 327 200 569
Accounts payable 539 451 2 992
Customer deposits 607 6 - 613
Accrued interest and taxes 303 351 (188 ) 466
Regulatory liabilities:
Deferred clause and franchise revenues 377 - - 377
Pension - - 2 2
Derivatives 77 143 1 221
Other   659       527       3       1,189  
 
Total current liabilities   3,422       1,805       1,222       6,449  
 
 
Other Liabilities and Deferred Credits
Asset retirement obligations 1,833 585 - 2,418
Accumulated deferred income taxes 3,509 1,278 73 4,860
Regulatory liabilities:
Accrued asset removal costs 2,251 - - 2,251
Asset retirement obligation regulatory expense difference 671 - - 671
Pension - - 16 16
Other 244 - - 244
Derivatives 1 164 5 170
Other   651       1,182       279       2,112  
 
Total other liabilities and deferred credits   9,160       3,209       373       12,742  
 
 
Commitments and Contingencies
 
Total Capitalization and Liabilities $ 26,812     $ 20,136     $ 1,510     $ 48,458  
 
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(millions)

(unaudited)
 
Three Months Ended March 31, 2010  

Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
Cash Flows From Operating Activities      
Net income (loss) $ 191 $ 367 $ (2 ) $ 556
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 229 180 5 414
Nuclear fuel amortization 36 36 - 72
Unrealized (gains) losses on marked to market energy contracts - (326 ) 2 (324 )
Deferred income taxes 123 128 19 270
Cost recovery clauses and franchise fees (392 ) - - (392 )
Change in prepaid option premiums and derivative settlements - 164 - 164
Equity in earnings of equity method investees - (7 ) - (7 )
Changes in operating assets and liabilities:
  Customer receivables 192 67 (2 ) 257
Other receivables 18 (16 ) (8 ) (6 )
Materials, supplies and fossil fuel inventory 12 14 - 26
Other current assets (14 ) (2 ) 4 (12 )
Other assets (27 ) 10 (13 ) (30 )
Accounts payable 2 (43 ) 19 (22 )
Customer deposits 14 1 - 15
Margin cash collateral (5 ) 20 1 16
Income taxes (68 ) (19 ) 12 (75 )
Interest and other taxes 53 (25 ) (12 ) 16
Other current liabilities (25 ) (17 ) 2 (40 )
Other liabilities 21 (13 ) 1 9
Other – net   29       (55 )     15       (11 )
Net cash provided by (used in) operating activities   389       464       43       896  
 
Cash Flows From Investing Activities
Capital expenditures of FPL (794 ) - - (794 )
Independent power investments - (567 ) - (567 )
Cash grants under the American Recovery and Reinvestment Act of 2009 44 55 - 99
Nuclear fuel purchases (7 ) (31 ) 1 (37 )
Other capital expenditures - - (15 ) (15 )
Sale of independent power investments - - - -
Proceeds from sale of securities in special use funds 1,608 292 - 1,900
Purchases of securities in special use funds (1,639 ) (299 ) 1 (1,937 )
Proceeds from sale of other securities - - 244 244
Purchases of other securities - - (253 ) (253 )
Other – net   1       -       (2 )     (1 )
Net cash provided by (used in) investing activities   (787 )     (550 )     (24 )     (1,361 )
 
Cash Flows From Financing Activities
Issuances of long-term debt 499 301 - 800
Retirements of long-term debt (22 ) (79 ) (1 ) (102 )
Net change in short-term debt 426 - 490 916
Issuances of common stock - - 12 12
Dividends on common stock - - (204 ) (204 )
Dividends & capital distributions from (to) FPL Group – net - (131 ) 131 -
Other – net   2       22       (4 )     20  
Net cash provided by (used in) financing activities   905       113       424       1,442  
 
Net increase (decrease) in cash and cash equivalents 507 27 443 977
Cash and cash equivalents at beginning of period   83       118       37       238  
 
Cash and cash equivalents at end of period $ 590     $ 145     $ 480     $ 1,215  
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(millions)

(unaudited)
 
Three Months Ended March 31, 2009  

Florida Power

& Light
 

NextEra Energy

Resources
 

Corporate &

Other
 

FPL Group,

Inc.
Cash Flows From Operating Activities
Net income (loss) $ 127 $ 228 $ 9 $ 364
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 251 154 4 409
Nuclear fuel amortization 32 29 (1 ) 60
Unrealized (gains) losses on marked to market energy contracts - (75 ) - (75 )
Deferred income taxes 183 (208 ) 7 (18 )
Cost recovery clauses and franchise fees 266 - - 266
Change in prepaid option premiums and derivative settlements (1 ) 48 - 47
Equity in earnings of equity method investees - (7 ) - (7 )
Changes in operating assets and liabilities:
Customer receivables 93 67 2 162
Other receivables 55 (15 ) (9 ) 31
Materials, supplies and fossil fuel inventory 29 69 (1 ) 97
Other current assets (16 ) 2 6 (8 )
Other assets (16 ) 1 (15 ) (30 )
Accounts payable (70 ) (63 ) 3 (130 )
Customer deposits 14 - (1 ) 13
Margin cash collateral - (185 ) - (185 )
Income taxes (320 ) 273 92 45
Interest and other taxes 65 (8 ) 15 72
Other current liabilities (61 ) (33 ) (6 ) (100 )
Other liabilities 6 (11 ) 2 (3 )
Other – net   (7 )     21       19       33  
Net cash provided by (used in) operating activities   630       287       126       1,043  
 
Cash Flows From Investing Activities
Capital expenditures of FPL (575 ) - - (575 )
Independent power investments - (422 ) - (422 )
Cash grants under the American Recovery and Reinvestment Act of 2009 - - - -
Nuclear fuel purchases (43 ) (27 ) - (70 )
Other capital expenditures - - (9 ) (9 )
Sale of independent power investments - 5 - 5
Proceeds from sale of securities in special use funds 516 359 - 875
Purchases of securities in special use funds (524 ) (369 ) 1 (892 )
Proceeds from sale of other securities - - 17 17
Purchases of other securities - (5 ) (21 ) (26 )
Other – net   -       1       -       1  
Net cash provided by (used in) investing activities   (626 )     (458 )     (12 )     (1,096 )
 
Cash Flows From Financing Activities
Issuances of long-term debt 493 94 921 1,508
Retirements of long-term debt (20 ) (198 ) (141 ) (359 )
Net change in short-term debt (312 ) - (908 ) (1,220 )
Issuances of common stock - - 49 49
Dividends on common stock - - (191 ) (191 )
Dividends & capital distributions from (to) FPL Group – net (200 ) 223 (23 ) -
Other – net   11       -       (4 )     7  
Net cash provided by (used in) financing activities   (28 )     119       (297 )     (206 )
 
Net increase (decrease) in cash and cash equivalents (24 ) (52 ) (183 ) (259 )
Cash and cash equivalents at beginning of period   120       145       270       535  
 
Cash and cash equivalents at end of period $ 96     $ 93     $ 87     $ 276  
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Earnings Per Share Contributions

(assuming dilution)

(unaudited)
  First

Quarter
 
FPL Group – 2009 Earnings Per Share $ 0.90  
 
Florida Power & Light – 2009 Earnings Per Share $ 0.31
Customer growth -
Usage due to weather 0.08
Base rate adjustment for West County Energy Center Units No. 1 and 2 0.09
Base rate increase effective March 1, 2010 0.01
Underlying usage growth and all other revenue 0.03
O&M expense (0.03 )
Depreciation expense 0.01
AFUDC (0.03 )
Interest expense (gross) (0.01 )
Cost recovery clause results, primarily solar and nuclear uprates 0.02
Share dilution -
Other   (0.01 )
 
Florida Power & Light – 2010 Earnings Per Share 0.47
 
NextEra Energy Resources – 2009 Earnings Per Share 0.56
New investments 0.03
Existing assets (0.08 )
Asset optimization and trading 0.03
Asset sales 0.02
Non-qualifying hedges impact 0.34
Change in other than temporary impairment losses - net 0.08
Share dilution (0.01 )
Other, including interest expense   (0.08 )
 
NextEra Energy Resources – 2010 Earnings Per Share 0.89
 
Corporate and Other – 2009 Earnings Per Share 0.03
FPL FiberNet -
Share dilution 0.01
Other, including interest expense and interest income   (0.04 )
 
Corporate and Other – 2010 Earnings Per Share   -  
 
 
FPL Group – 2010 Earnings Per Share $ 1.36  
 
 
Beginning in 2010, NextEra Energy Resources' financial statements reflect a deemed capital structure of 70% debt and allocated corporate-related operating expenses. Prior year amounts for NextEra Energy Resources and Corporate & Other have been restated to reflect these changes. For interest allocation purposes, the deferred credit associated with differential membership interest sold by a NextEra Energy Resources subsidiary in 2007 is included with debt. Residual non-utility interest expense is included in Corporate & Other.
 
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the next effect of rounding.
 
 
FPL Group, Inc.

Preliminary Long-Term Debt and Commercial Paper

(millions)

(unaudited)
 
March 31, 2010        
Type of Debt  

Interest

Rate (%)
 

Maturity

Date
  Total Debt  

Current

Portion
 

Long-Term

Portion
     
Long-Term:
Florida Power & Light
First Mortgage Bonds:
First Mortgage Bonds 4.850 02/01/13 $ 400 $ - $ 400
First Mortgage Bonds 5.850 02/01/33 200 - 200
First Mortgage Bonds 5.950 10/01/33 300 - 300
First Mortgage Bonds 5.625 04/01/34 500 - 500
First Mortgage Bonds 5.650 02/01/35 240 - 240
First Mortgage Bonds 4.950 06/01/35 300 - 300
First Mortgage Bonds 5.400 09/01/35 300 - 300
First Mortgage Bonds 6.200 06/01/36 300 - 300
First Mortgage Bonds 5.650 02/01/37 400 - 400
First Mortgage Bonds 5.850 05/01/37 300 - 300
First Mortgage Bonds 5.550 11/01/17 300 - 300
First Mortgage Bonds 5.950 02/01/38 600 - 600
First Mortgage Bonds 5.960 04/01/39 500 - 500
First Mortgage Bonds 5.690 03/01/40   500       -     500  
Total First Mortgage Bonds 5,140 - 5,140
Revenue Refunding Bonds:
Miami-Dade Solid Waste Disposal VAR 02/01/23 15 - 15
St. Lucie Solid Waste Disposal VAR 05/01/24   79       -     79  
Total Revenue Refunding Bonds 94 - 94
Pollution Control Bonds:
Dade VAR 04/01/20 9 - 9
Martin VAR 07/15/22 96 - 96
Jacksonville VAR 09/01/24 46 - 46
Manatee VAR 09/01/24 16 - 16
Putnam VAR 09/01/24 4 - 4
Jacksonville VAR 05/01/27 28 - 28
St. Lucie VAR 09/01/28 242 - 242
Jacksonville VAR 05/01/29   52       -     52  
Total Pollution Control Bonds 493 - 493
Industrial Bonds - Dade VAR 06/01/21 46 - 46
Storm Securitization Bonds:
Storm Securitization Bonds 5.050 02/01/11 23 23 -
Storm Securitization Bonds 5.040 08/01/13 140 21 119
Storm Securitization Bonds 5.130 08/01/15 100 - 100
Storm Securitization Bonds 5.260 08/01/19   288       -     288  
Total Storm Securitization Bonds 551 44 507
Water and Sewer Revenue Bonds 4.000 - 5.250 10/01/40 29 - 29
Unamortized discount   (34 )     -     (34 )
Total Long-Term Debt 6,319 44 6,275
Commercial Paper and Notes Payable   1,244       1,244     -  
TOTAL DEBT - FLORIDA POWER & LIGHT   7,563       1,288     6,275  
 
 
FPL Group, Inc.

Preliminary Long-Term Debt and Commercial Paper

(millions)

(unaudited)
 
March 31, 2010
Type of Debt  

Interest

Rate (%)
 

Maturity

Date
  Total Debt  

Current

Portion
 

Long-Term

Portion
FPL Group Capital Without NextEra Energy Resources
Debentures:
Debentures 5.630 09/01/11 600 - 600
Debentures 7.880 12/15/15 450 - 450
Debentures 7.880 12/15/15 50 - 50
Debentures 5.350 06/01/13 250 - 250
Debentures 6.000 03/01/19 500 - 500
Debentures 8.375 06/01/14 350 - 350
Debentures (Junior Subordinated) 5.880 03/15/44 309 - 309
Debentures (Junior Subordinated) 6.600 10/01/66 350 - 350
Debentures (Junior Subordinated) 6.350 10/01/66 339 - 339
Debentures (Junior Subordinated) 6.650 06/15/67 380 - 380
Debentures (Junior Subordinated) 7.300 09/01/67 250 - 250
Debentures (Junior Subordinated) 7.450 09/01/67 350 - 350
Debentures (Junior Subordinated) 8.750 03/01/69 375 - 375
Floating Debenture VAR 06/01/11 250 - 250
Floating Debenture VAR 06/01/11   200       -     200  
Total Debentures 5,003 - 5,003
Term Loans:
Term Loans VAR 06/10/10 200 200 -
Term Loans VAR 03/25/11 100 100 -
Term Loans VAR 03/27/11 100 100 -
Term Loans VAR 03/25/11 200 200 -
Term Loans VAR 09/16/11 90 - 90
Term Loans VAR 09/17/11 120 - 120
Term Loans VAR 12/19/11 134 - 134
Term Loans VAR 12/19/11 50 - 50
Term Loans VAR 12/19/11 150 - 150
Term Loans VAR 12/19/11   50       -     50  
Total Term Loans 1,194 600 594
Senior Secured Bonds - Pipeline Funding: 500 - 500
Fair value swaps 15 - 15
Unamortized discount   (3 )     -     (3 )
Total Long-Term Debt 6,709 600 6,109
Commercial Paper and Notes Payable   1,691       1,691     -  
TOTAL DEBT - FPL GROUP CAPITAL, WITHOUT NEXTERA ENERGY RESOURCES   8,400       2,291     6,109  
 
NextEra Energy Resources
Senior Secured Bonds:
Senior Secured Bonds 6.876 06/27/17 66 11 55
Senior Secured Bonds 6.125 03/25/19 63 9 54
Senior Secured Bonds 6.639 06/20/23 228 27 201
Senior Secured Bonds 5.608 03/10/24 259 27 232
Senior Secured Bonds 7.520 06/30/19   182       15     167  
Total Senior Secured Bonds 798 89 709
Senior Secured Notes:
Senior Secured Notes 7.260 07/20/15 125 - 125
Senior Secured Notes 6.310 07/10/17 290 - 290
Senior Secured Notes 6.610 07/10/27 35 - 35
Senior Secured Notes 6.960 07/10/37 250 - 250
Senior Secured Notes 7.110 06/28/20 86 6 80
Senior Secured Notes 6.665 01/10/31 150 12 138
Senior Secured Notes 7.590 07/10/18 518 8 510
Senior Secured Notes 8.450 12/31/12 30 9 21
Senior Secured Notes 6.560 03/24/30 305 - 305
Limited-recourse Senior Secured Notes 7.510 07/20/21   16       2     14  
Total Senior Secured Bonds 1,805 37 1,768
Other Debt:
Other Debt VAR 12/31/17 64 14 50
Other Debt 8.010 12/31/18 2 - 2
Other Debt Fixed & VAR 11/30/19 196 22 174
Other Debt Fixed & VAR 01/31/22 447 50 397
Other Debt VAR 12/31/12 138 43 95
Other Debt VAR 12/30/16 368 29 339
Other Debt 7.500 12/19/13 183 20 163
Other Debt VAR 12/31/23 88 4 84
Other Debt Fixed & VAR 05/17/17 333 25 308
Other Debt Fixed & VAR 12/31/19   128       -     128  
Total Other Debt 1,947 207 1,740
Unamortized discount   -       -     -  
TOTAL NEXTERA ENERGY RESOURCES DEBT   4,550       333     4,217  
TOTAL DEBT - FPL GROUP CAPITAL INCLUDING NEXTERA ENERGY RESOURCES   12,950       2,624     10,326  
TOTAL DEBT - FPL GROUP, INC. $ 20,513     $ 3,912   $ 16,601  
 
May not agree to financial statements due to rounding.
 
FPL Group, Inc.

Preliminary Schedule of Total Debt and Equity

(millions)

(unaudited)
   
March 31, 2010   Per Books   Adjusted 1
 
Long-term debt, including current maturities, notes payable and
commercial paper
Junior Subordinated Debentures 2 $ 2,703 $ 1,177
Project debt:
Natural gas-fired assets 914
Wind assets 2,905
Hydro assets 700
Storm Securitization Debt 551
Pipeline Funding 500
Waste Water Bonds 29

Other long-term debt, including current maturities, commercial paper, and notes payable 3
  12,211       12,211  
 
Total debt 20,513 13,388
Junior Subordinated Debentures 2 1,527
Common shareholders' equity   13,336       13,336  
 
Total capitalization, including debt due within one year $ 33,849     $ 28,251  
 
 
Debt ratio 61 % 47 %
 
 
December 31, 2009   Per Books   Adjusted 1
 
Long-term debt, including current maturities and
commercial paper
Junior Subordinated Debentures 2 $ 2,703 $ 1,177
Project debt:
Natural gas-fired assets 921
Wind assets 2,669
Hydro assets 700
Storm Securitization Debt 573
Pipeline Funding 500
Waste Water Bonds 24
Other long-term debt, including current maturities, commercial paper, and notes payable 3   10,799       10,799  
 
Total debt 18,889 11,976
Junior Subordinated Debentures 2 1,527
Common shareholders' equity   12,967       12,967  
Total capitalization, including debt due within one year $ 31,856     $ 26,470  
 
 
Debt ratio 59 % 45 %
 
 
1 Ratios exclude impact of imputed debt for purchase power obligations. Including the impact of imputed debt for purchase power obligations the adjusted debt ratio would be 49% and 50% for March 31, 2010 and December 31, 2009 respectively.
2 Adjusted to reflect preferred stock characteristics of these securities (preferred trust securities and junior subordinated debentures).
3 Includes premium and discount on all debt issuances.
 
   
Florida Power & Light Company

Statistics

(unaudited)
 
Quarter
Periods Ended March 31   2010   2009
 
Energy sales (million kwh)
Residential 13,054 11,129
Commercial 9,862 10,087
Industrial 761 816
Public authorities 134 133
Increase (decrease) in unbilled sales (797 )   (580 )
Total retail 23,014 21,585
Electric utilities 487 224
Interchange power sales 358     796  
Total 23,859     22,605  
 
 
Average price (cents/kwh) 1
Residential 8.65 11.94
Commercial 7.46 10.67
Industrial 5.59 8.94
Total 8.08 11.26
 
Average customer accounts (000's)
Residential 3,996 3,985
Commercial 502 501
Industrial 9 11
Other 3     4  
 
Total 4,510     4,501  
 
 
End of period customer accounts (000's) MAR 2010   MAR 2009
Residential 4,002 3,988
Commercial 502 501
Industrial 9 11
Other 4     3  
Total 4,517     4,503  
 
1 Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund.
 
 
2010   Normal   2009
 
 
Three Months Ended March 31
Cooling degree-days 42 123 93
Heating degree-days 587 231 289
 
Cooling degree days for the periods above use a 72 degree base temperature and heating degree days use a 66 degree base temperature.
 

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