TRANSMISSION AND RENEWABLES

Skelly Holmbeck, Business Manager

October 21, 2009

WOMEN IN POWER FORUM

Washington DC

2

Agenda

• FPL Group Overview

• The Texas Plan

• National Picture

– Transmission Needs & Opportunities

• Significant Transmission Events

3

A growing, diversified and financially strong Company

Market Capitalization as of August 31, 2009Operating Revenue for the year ended December 31, 2008All other data as of December 31, 2008

Florida Power & Light

FPL Group

• One of the largest U.S. electric utilities

• Vertically integrated, retail rate-regulated

• 4.5 MM customer accounts

• 22,087 MW in operation

• $11.6 B in operating revenues

• $26.2 B in assets

• Successful wholesale generator

• U.S. leader in renewable generation

• Assets in 25 states and Canada

• 16,928 MW in operation

• $4.6 B in operating revenues

• $17.2 B in assets

NextEra Energy Resources

• $23.1 B market capitalization

• 39,015 MW in operation

• $16.4 B operating revenue

• $44.8 B in total assets

FPL Group is a premier U.S. power company

4

Stateline

Vansycle

Port of Stockton

SEGS

Blythe

Gray County

Lamar

Forney

WPP94

SW Mesa

King Mt.

Lake Benton II

Doswell

Cherokee

Maine Hydro System

Cape

Wyman

Wind

Hydro

Natural Gas/Oil

Solar

Nuclear

Other

(as of 10/01/09)

Montfort

Calhoun

Bellingha

m

Mountaineer

North Dakota

South Dakota

Cerro

Gordo

Marcus Hook

Hancock

New Mexico

High Winds

Delaware Mt.

Rhode Island

State Energy

Center

Sayreville

Waymart

Oklahoma

Wyoming

Somerset

Green Mt.

Meyersdale

Mill Run

Cabazon

Green Power

Seabrook

WPP93

Weatherford

Horse

Hollow

Wilton

Duane

Arnold

Oliver

Mower

Green Ridge

Sky River

WPP90, 91,

91-2, 92, 93

Diablo

Red Canyon

Peetz Table

Point Beach

Endeavor

Langdon

Birch

Ebensburg

Montgomery County Logan

Crystal Lake

Story

County

Capricorn Ridge

Wolf

Ridge

Ashtabula

Asset Portfolio

TPC Windfarms

Mojave

3/5/16/17/18

Woodward

Mt.

Indian Mesa

Callahan

States with NextEra Energy Resources power generation facilities. Not shown are Quebec and Nova Scotia in Canada

Northern

Colorado

5

Agenda

• FPL Group Overview

• The Texas Plan

• National Picture

– Transmission Needs & Opportunities

• Significant Transmission Events

6

The focus on Climate Change is at an all-time high

We are doing something about it in Texas!

7

Approved Texas CREZ Transmission Build out

~2,300 miles of new 345kV circuit miles

~ $5 billion of new investment

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• Significant payments to landowners

– Estimated nearly $1.2B in royalty payments

• Large tax payments to state and local governments

– Estimated at $3.32B over 10 years

• Creation of construction jobs as well as permanent jobs

– Over the 10 year period of construction

– Estimated $660M in construction salaries

– Estimated $260M in permanent payroll

• $5.45 Billion estimated major, direct economic development and tax benefits to TX

Investment in $5B of transmission to support the 18 GW of wind will yield significant economic benefit to the state. Production cost savings alone provide a 3.5 year payback

What economic benefits will the TX decision yield?

Major economic benefit. Cost to average rate payer $4/month

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• Reduction in CO2 per year

– 193,023,839 tons

• Reduction in NOx per year

– 93,562 tons

• Reduction in SO2 per year

– 1,015,772 tons

• Reduction in H2O usage per year

– 17,680,000,000 gallons

Investment in $5B of transmission to support the 18 GW of wind will yield significant environmental benefit to the state.

What environmental benefits will the TX decision yield?

Major environmental benefit. Cost to average rate payer $4/month

10

Agenda

• FPL Group Overview

• The Texas Plan

• National Picture

– Transmission Needs & Opportunities

• Significant Transmission Events

11

The State of the Grid

Between 2008 and 2010 T&D capital expenditures are projected to grow 33% over the previous three years

• Congestion Cost

– $8 B in 2008 in Eastern Interconnect

– $1 B in New York alone

• Transmission Disruption

– $4-6 B economic impact for August 2003 blackout

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Some Major Announced Transmission Projects

Transmission opportunities are bountiful; there are numerous announced large scale transmission projects totaling over $200 billion in potential investment

13

Actual and Planned Transmission Investment By

Shareholder-Owned Electric Utilities (2000-2010)

Investment in the grid is on the upswing

4,948 5,073 5,1985,652 5,746

6,815

7,551 7,769

9,463

10,388

11,050

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004 2005 2006 2007 2008p 2009p 2010p

($ Millions [Real$2007])

Actual Planned

1) p=preliminary

Source: Edison Electric Institute Business Information Group.

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Long range forecasts 2010 – 2030 reflect recentcost and expenditure trends only

Transmission Investments 2010 - 2030

Nominal

Billion $’s

0

50

100

150

200

250

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Other Transmission Investments Projected From EEI Data

Projects > 230kV Derived From NERC ES&D Data and Current Costs

Projected Cost of New Transmission (2010-2030)

15

Agenda

• FPL Group Overview

• The Texas Plan

• National Picture

– Transmission Needs & Opportunities

• Significant Transmission Events

16

Game Changing Events

• National renewable energy standard

• Interconnection queue log jam

• Cost allocation debate

• Sitting Authority

• Grid federalization

• Implementation of “alternative” cost effective technology

– Superconductor Electricity Pipelines

Depending on outcome, these issues will either expedite or greatly delay the build out

Questions, Ideas, Solutions