1. Henrietta M. Gurri McBee 3 October 2007
27th Annual Bonbright Center Electric & Natural Gas Conference Day 1: Panel Session #3: Utility Scale Wind & Solar Generation
Henrietta M. Gurri McBee
3 October 2007

2. Climate Change Focus Is at an All Time High

3. New York Times/CBS News Poll, April 20-24, 2007
Americans Are Concerned…
How much have you heard or read about global warming — a lot, some, not much or nothing at all?
Global warming is a very serious problem and should be one of the highest priorities for government leaders.
Global warming is not serious and can be addressed years from now.
Do you think global warming is an environmental problem that is causing a serious impact now?
Do you think it is necessary to take steps to counter the effects of global warming right away?
42% (a lot)
52% (agree)
8% (agree)
49% (impact now)
78% (right away)
New York Times/CBS News Poll, April 20-24, 2007

4. State and Regional Climate Change Actions
Powering the Plains
Regional
Greenhouse
Gas Initiative
RPS Standard:
WA, OR, NV, AZ, NM, CO, MT, TX, MN, WI, NY, MA, CT, RI, NJ, PA, DE, MD, NC,DC,HI
RPS Standard
and Goal: CA, MN, IL, ME
RPS Goal / Executive Order: VA, VT, FL
States
developing
greenhouse
gas registries
California
motor vehicle
CO2 emissions standards (plus VT, MA, RI, CT, NJ, ME, FL – Executive Order)  
Western Regional Climate Action Initiative          

5. U.S. Electric CO2 Emissions (million metric tons)
CO2 Mitigation
3,500
3,000
2,500
2,000
1,500
1,000
1990
1995
2000
2005
2010
2015
2020
2025
2030
Efficiency
Renewables
Nuclear
Adv. Coal
Carbon Capture
Dist. Energy
U.S. Electric CO2 Emissions (million metric tons)
Carbon capture technologies not yet viable at commercial scale
Carbon sequestration technologies not yet demonstrated at commercial volumes
Source: EPRI, “Electric Sector CO2 Impacts – February 2007”

6. Summary of Florida’s Climate Change Summit
Nearly 800 attendees
120 local, state, international media
Leadership from State Government, DEP & PSC
Signing of Executive Orders and Partnership Agreements
Actions to Reduce Greenhouse Gas Emissions from Florida State Government
Governor’s Action Team on Energy and Climate Change : FPL President Armando Olivera, is the only utility representative
Actions to Reduce Greenhouse Gas Emissions within Florida
Agreements with Germany and the UK

7. Executive Order 07-127 – Emissions Reductions in Florida
Florida to reduce emissions to 2000 levels by 2017, 1990 levels by 2025 and 80% below 1990 by 2050
Florida electric utilities to meet 2000 levels by 2017, 1990 levels by 2025 and 80% below 1990 by 2050
Requires adoption of California motor vehicle standards
New building, appliance and consumer product standards
Requests the PSC to set a 20% RPS with a strong focus on solar and wind, to adopt IEEE 1547 Standard for interconnecting distributed resources to the grid, and to allow net metering for renewables up to 1MW

8. Florida & FPL Characteristics
Florida is one of the fastest growing states in the country
FPL provided reliable electricity to more than 130,000 new customer accounts last year
FPL is projecting an annual average increase of nearly 87,000 new customers for the next ten years
Electric usage per FPL customer has increased by approximately 30 percent over the past 20 years resulting in projections of significant growth in energy usage per customer over the next decade
Despite FPL’s successful energy conservation programs, and a focus on developing renewable energy, the growth in demand for electricity has necessitated on average, FPL will need 650 MW of additional power generation every year
Challenge: Balancing providing economic, reliable electric service while achieving greenhouse gas reductions.

9. FPL’s Demand Side Management
FPL’s DSM includes the planning, implementation and monitoring of utility programs designed to reduce customer usage of electricity during peak demand periods in a cost-effective manner
Load Management: FPL has direct control of portions of customer’s loads or end uses
Energy Efficiency: FPL’s customers invest in capital improvements (e.g., more energy efficient insulation and appliances) that result in changing energy consumption behavior (e.g., thermostat set-back)

10. FPL’s DSM Impact & Performance
Source: DOE EIA 2005
FPL customer base represents 3% of the total US consumers
FPL has done 13% of the energy efficiency in the US and 6% of the load management

11. Today’s Wind Generation Challenges
Major Issues:
Wind resource evaluation/ risk
i.e. NCF output
Transmission/Interconnection
Tax credit cycle (in U.S.) – drives WTG manufacturer inventory (supply chain)
U.S. wind market is subject to global market pressures (supply chain)
Escalating equipment costs (2009 installed costs likely to be double that of 2004)
Florida’s wind resource is limited to coastal and offshore locations which are costly and challenging.

12. Wind’s Promise - Becoming a Reality:
2007 likely to be a record year for U.S. wind development
Over 4,000 MW likely in U.S. this year
Many challenges and opportunities exist
for U.S. market:
Upwards of 8,000 MW may be added
Total U.S. capacity may approach 20,000 MW by Dec 2008
U.S. wind production still less than 1% of U.S. electricity supply

13. FPL Energy – U.S. Leader In Wind Energy
U.S. market leader with 33% market share
4,016 net MW in operation at year end 2006
5,100 net MW in operation by year end 2007
U.S Market may approach 16,000MW by 12/2007
FPL Energy investment alone will exceed $6 Billion by the end of 2007
U.S. Market will likely grow an additional 4,000MW+ in 2008
FPL Energy’s wind program to add 8 – 10,000 MW over 2007 – 2012 period

14. US Wind Resource Potential

15. Florida Wind Regime

16. FPL Clean Energy
Wind
St. Lucie County wind project up to 20.7 MW; COD end of 2008
Pursuing other potential large scale wind projects in Florida

17. Solar – Key Challenges Component Supply
FPL Group has firsthand knowledge of the major component suppliers and has field tested nearly every new technology
World supply for tubes, mirrors is constrained and will remain so until new factories are built
Price point to wholesale customers
Project challenges
Large scale solar projects require substantial “footprint”
Environmental challenges (e.g., wetlands on large footprint)

18. FPL Clean Energy Solar Sunshine Energy® Program
PV projects since 1970’s
Targeting additional solar PV installations
Announced plans to build new solar thermal 10 MW project, should Ausra technology meet FPL’s cost, technical expectations and all necessary approvals are granted, target to build up to 300 MW

19. FPL Clean Energy Other Clean Energy
Existing Florida Renewables Energy Purchases since 1980 including Biomass, Waste-to-Energy and Landfill Gas
Pursuing biomass/wastewater/landfill gas opportunities
Biodiesel: FPL pioneered use of B20 which is 80% diesel fuel mixed with 20% virgin soybean oil, used by virtually all of FPL’s medium duty trucks
Recent Renewable RFP resulted in:
144 MW of new capacity from municipal solid waste incinerators (44 MW) and new biomass (100 MW)
Assess and promote the commercial utilization of evolving renewable technologies
Ocean current generation (e.g., Alliance with FAU’s Center of Excellence in Ocean Energy Technology)
Fuel cells

20. FPL Group A Clean Energy Leader

21. FPL Group: A Leader on the Environment
FPL Group has committed to a 15% improvement in generation efficiency by 2020 from a baseline year of 2000
Generation efficiency improvements will result in an estimated 19 million tons of CO2 reductions in 2020 as compared to the same generation in 2000
FPL Group has committed to an 18% reduction in CO2 emissions rate by 2008 compared to a 2001 baseline
Account for global dimensions of climate change
Recognize the importance of technology
Be environmentally effective
Create opportunity and advantage
Be fair to sectors disproportionately impacted
Recognize and encourage early action
FPL Group is a member of The Climate Group, whose mission is to catalyze business and government leadership on climate change in order to put the world on track for a low carbon economy.

22. POWERING TODAY. EMPOWERING TOMORROW.