Business Development ……Where To From Here? FPL Group Bank Meeting September 21, 2004

2 FPL Energy: A Disciplined Wholesale 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 10,795 1 net MWs in operation 1 As of 8/20/04 FPL Energy operations

3 Northeast 17% 11,539 Net MWs in Operation Mid-Atlantic 24% 25% 34% West Regional Diversity Central Wind Fuel Diversity Gas 57% 24% Other 1% Hydro 3% 6% Oil Nuclear 9% Diversified Portfolio at FPL Energy Year-end (Projected) 1 As of 8/20/04

4 Wind – A Real and Growing Business 2,746 MW –More than 6500 turbines Own and operate about 50% of all new U.S. wind the last 3 years More than $2.3 billion invested 43% U.S. market share

5 FPL Energy’s Competitive Advantage in Wind Business scale –U.S. and world leader in wind, 6,500 turbines in our fleet Project development track record Can utilize the tax credits Creditworthy counterparty Third-party financing access (over $630 mm in 2003) Quick to market –3 to 6 months after permitting

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10 Wind’s Promise Partially Delivered Still many challenges and opportunities exist Boom/bust cycle still with us (PTC linked) 2004 likely to be under 300 MWs in U.S may exceed 1500 MWs in U.S. if PTC enacted 4Q 2004

11 Today’s Wind Challenges Major Issues: Transmission/Interconnection Energy bill and tax credits Deregulation/Re-regulation Competitive Pricing/PPAs

12 Transmission Issues Persist Constraints will continue to limit wind development for the foreseeable future Transmission & Interconnection –Wind will be minor in the national dialogue –Political process can not be ignored –Regional differences remain large

13 PTC NOW PTC LATER PTC Delays…………….

14 But Not a Likely Replacement for Fossil Fuels The U.S.’s demand cannot be met by wind –But wind can supplement it There should be a place for wind as part of a portfolio of energy sources Important political decisions will drive wind’s future in the next few years Lack of “firm” capacity hurts its competitive positioning High natural gas prices increase demand for wind in some parts of the U.S.

15 What the Wholesale Customer Seeks Drives the Business –Size (MW) –Price (cents/kWh) –Timing (2005, 2006, etc.) –Does wind “fit” with the customer’s technical needs (system)? –Is it competitive with their other wholesale ($) choices?

16 FPL Energy’s Value Proposition Construction timing and cost risk with FPL Energy Long term wind resource/energy production risk on FPL Energy Life of project O&M and G&A expense exposure on FPL Energy

17 Source: Cambridge Energy Research Associates/FPLE The Industry Must Sustain the: “Development Value Chain”

and Beyond: Key Issues For Wind Remain PTC renewal Financeability Transmission/interconnection NIMBY, avian issues Wholesale competitiveness

19 What’s Next? PTC extension will spur renewed growth, remain necessary for foreseeable future Technological advances will enhance turbine performance, reliability, and build customer confidence Financing will become easier for “big players”, remain challenging for smaller developers –Track records will be critically important

20 What’s Next? (continued) Larger is not necessarily better (machines) –Size has its logistical and cost limits on-shore –Beware of the QF/IPP dilemma of believing scale is always cheaper and better Learn from the lessons of the QF era –Government incentives can have good intentions but promote poor business decisions if taken to extremes –PTCs, not Federal RPS, provide the right commercial balance and overbuild protections Meet customer expectations: Low Cost Power Growth expectations in the U.S. and the world are ahead of commercial and regulatory realities

21 Business Development Focus Wind –build on our U.S. and world leadership position Asset acquisitions –regional emphasis –opportunistic –nuclear

22 FPL Energy Acquisition Focus Contracted Fossil PartnersNuclearWind FPL Energy Focus

23 FPL Energy Asset Acquisition Criteria Strategic Fits the portfolio Largely hedged/“Deep in the money” Financeable Operational upside Attractive economics Immediately accretive to earnings

24 Nuclear Acquisition Drivers Industry consolidating Single unit operators potentially disadvantaged Scale matters Opportunities for significant operational upsides Handful of bidders Attractive economics - e.g., Seabrook Station, AmerGen

25 Strategic Fit Turkmenistan

26 Summary Current market conditions remain mixed –nuclear/wind still attractive –contracted fossil currently “over bought” –merchant opportunities not attractive FPL Energy very well-positioned –leverage existing position, particularly in nuclear, wind, and with our partners –disciplined approach –experienced, seasoned deal team –good pipeline of opportunities By nature, must be opportunistic

27 Questions?