1. Wind Tour 2004 Wind Energy Business Overview FPL Energy Wind Tour 2004 Waymart Energy Center, PA

2. Wind Tour 2004 2 Agenda I. Wind Industry UpdateMike O’Sullivan II. FPL EnergyPat Caramante III. Wind ForecastingAndrew Garrad

3. Wind Tour 2004 Mike O’Sullivan Wind Industry Update 2004 and Beyond

4. Wind Tour 2004 4 We are neither hunters nor gatherers. We are wind developers

5. Wind Tour 2004 5 Wind – A Real and Growing Business Most competitive renewable technology –with PTCs, a typical wind facility competes favorably with a combined cycle project’s output at gas prices above $4 mmBtu (non-firm energy only) Public policy trends support renewables –Renewable Portfolio Standards in 12 states –IRS Section 45 production tax credits

6. Wind Tour 2004 6 Attractive Business Profile Long-term contracts (15-25 years) with creditworthy off- takers –Significant value in addition to PTCs Attractive returns –Accretive in first full year Limited recourse senior debt financing is achievable for well structured deals –Validated by the FPLE American Wind financing, July 2003

7. Wind Tour 2004 7 Then and Now “Old” Oak Creek Wind Farm, CA 60 KW turbines, 1984 Solano County, CA Vestas 1.8 MW turbines, 2003 1980 1990 2003 1239 70 + 50 500 1,500+ 60% 90% 98% + Rotor diameter (meters) kw per turbine Availability Wind energy PPA (¢/kWh) 4010 2-5

8. Wind Tour 2004 8 U.S. Wind Market Share (mw)Pre 2001 2001 2002 2003 Market Size Total New Capacity Installed 2,578 1,697 410 1,689 1 6,374 1 FPL Energy Contribution 576 843 201 2 812 2 2,719 3 FPL Energy New Contribution % 50% 49% 48% FPL Energy Total Market % 22% 33% 37% 43% 3 FPL Energy 43% Competitors with less than 50 MW (<1%) each 18% Competitors at ~1 to <7% each 39% 1 AWEA estimate as of 1/22/04 2 Excludes 123 MW of acquisitions in 2002, and 164 MW of acquisitions in 2003 3 Total FPL Energy 2,719 mw with acquisitions; includes Enron California (106MW)+LG&E (34MW)+PA (24MW) US Market Share

9. Wind Tour 2004 9 Not A Niche Industry Anymore U.S. Wind Power Capacity Additions (mw) U.S. Wind Power Cumulative Capacity (mw) Sources: DOE, AWEA, FPLE Estimates

10. Wind Tour 2004 10 FPL Energy - 2003 Highlights 2,719 MW on Dec. 31, 2003 (total wind portfolio) We built in 2003, and now own and operate, 49% of all new U.S. wind installed 975 new MW added in 2003 –Includes acquisitions (164 MW) Approximately $2.3 billion net-investment in wind at YE 2003

11. Wind Tour 2004 11 2004: Key Issues We Face in the US Market PTC renewal uncertainty –Potentially dampens demand Adequate on site wind data Transmission and/or interconnection Creditworthiness of counter parties NIMBY, avian and environmental acceptance

12. Wind Tour 2004 12 Our Wind Energy Focus in 2004 and Beyond Greenfield Late stage greenfield Acquisitions

13. Wind Tour 2004 13 Key Factors for Success The right site –Land use and landowners –Transmission and interconnection –Wind data PPA with the right entity, at the right price Good financials Public acceptance –Local community –State-level political support

14. Wind Tour 2004 14 The Right Site/Topography

15. Wind Tour 2004 15 Wind Data Established wind regions Solid on-site data –18-24+ months –Strong correlation to long term reference tower data Rigorous examination of wind data –Outside consultants –In-house meteorologist and statisticians

16. Wind Tour 2004 16 Where the Wind Blows Source: Pacific Northwest National Laboratory

17. Wind Tour 2004 17 Finding Offtakers: FPLE’s Primary Focus Identify PPA customers Determine interest Size (MW) Price (cents/kWh) Timing (2004, 2005, etc.) Does this plan “fit” with customer’s long-term plans? Competitive with their other wholesale choices?

18. Wind Tour 2004 18 PPA Pricing and Credit Must be competitive –2-5 cents (2003 national range) Should reflect realities of wholesale marketplace Captures value at wholesale and retail levels –Often includes green credits Buyer must be a “third-party financeable” entity

19. Wind Tour 2004 19 Are The Financials Right? IRR ROE EPS Wind resource analysis

20. Wind Tour 2004 20 Three Key Financial Drivers PPA –15-25 years –2.5-3.5 cents often with escalators PTCs –1.8 cents plus inflation escalators –State incentives important Other Tax Benefits –50% Year 1 bonus depreciation (expires YE ‘04) – 5 year MACRS

21. Wind Tour 2004 21 Today’s Wind MUST Attract Non-Recourse Financing Reliable, diverse technology Better understanding of wind resource Long term PPAs with credit- worthy entities

22. Wind Tour 2004 22 Today’s Wind Also Must Have The potential for “non-recourse” and limited recourse financing for future wind projects –Bank financing –Private placements –144A –Tax-driven structures

23. Wind Tour 2004 23 As Well As... Construction expertise Timing Economies of scale Transmission/ interconnection Credit-worthiness

24. Wind Tour 2004 24 FPL Energy Wind – Our Competitive Advantage Business scale –U.S. and world leader Project development track record Quick to market –3 to 6 months after permitting Tax appetite Creditworthy Efficient third-party financing access

25. Wind Tour 2004 25 Tax Credit Renewal Spurs Growth US Annual Installation of New Wind Capacity (mw) Sources: Cambridge Energy Research Associates/ AWEA/FPLE PTC Expires; Renewed Five Months Later 10 60 170 357 442 183 134 47 (7) 129 50 96 135 45 24 (114) 220 602 52 1,707 447 1,660 808284868890929496980002 PTC Expires Energy Policy Act Creates Production Tax Credit (PTC ) Expiration of Original Tax Credit PTC Renewal PTC Expires (12/31/03)

26. Wind Tour 2004 26 PTC LATER PTC NOW

27. Wind Tour 2004 27 “Here it is--the plain unvarnished truth.” “Well, varnish it!” We NEED The PTC Extension

28. Wind Tour 2004 28 Waymart Energy Center

29. Wind Tour 2004 29 Waymart Site Information 43 GE 1.5s Wind Turbines –64.5 MW 5 month Construction –October 2003 100% to Exelon Generation –A- / Baa1 rating 860 acres –9 private landowners GE Wind O&M provider –2 year agreement

30. Wind Tour 2004 30 Wind Rose

31. Wind Tour 2004 31 Wind Project Construction Management & Operations Pat Caramante

32. Wind Tour 2004 32 Topics to be Covered 1.FPL/FPLE Project Portfolio 2.Wind Project Construction –Organization –Sample Project Details 3.Wind Project Business Management / Accounting –Organization –Responsibilities 4.Wind Operations –Organization –Results

33. Wind Tour 2004 33 A Leading U.S. Generator Operating Under construction/ advanced development 3,037Wind 31,647Total 80Other 365Hydro 23,881Fossil Generation Portfolio mw in operation 1 1 As of 1/31/04. Represents FPL Group’s gross mw in operation. Numbers may not add up due to rounding 160Solar 4,124Nuclear

34. Wind Tour 2004 34 FPL Energy – Wind Management Largest Manager of Wind Generation in the World –Manage over 3,000 MW –42 projects in 15 states –Approximately $2.3 billion net-investment in wind at YE 2003 –Most experienced large scale owner/operator of wind farms

35. Wind Tour 2004 35 FPL Energy Wind Business Dedicated Teams Development Special Valuation: Wind Construction Business Management Operations Accounting Support Teams Finance Tax Environmental Legal / Real Estate Procurement Information Management Not a Niche Business

36. Wind Tour 2004 36 Wind Construction Organization

37. Wind Tour 2004 37 Waymart Wind Energy Center Project Details Foundations –43 foundations 30 ft to 45 ft deep –Excavations made using 15 ft diameter auger –Approx. 50 yards of concrete and 9.25 tons of reinforcing steel per foundation

38. Wind Tour 2004 38 Waymart Wind Energy Center Project Details Weights –Turbine Nacelles - 125 tons each –Blades - 7.25 tons each –Towers - 125 tons each

39. Wind Tour 2004 39 Waymart Wind Energy Center Project Details Roads –23.5 miles of roads Collection system – 21 miles of 34.5 kV cable connecting each WTG to the substation SCADA System –Starts/stops turbines –Turns turbines/blades

40. Wind Tour 2004 40 Wind Business Management Organization

41. Wind Tour 2004 41 FPL Energy - Business Management 12 Business Managers dedicated to wind –Each Project has a dedicated Business Manager –Manages financial and commercial aspects of the projects –Direct project P&L responsibility Responsibilities –Project Management –Contract Management –Budget & Forecasting –Asset Optimization

42. Wind Tour 2004 42 FPL Energy- Project Accounting Independent from Business Management and Project Development Ensures adherence to internal controls, accounting policies & procedures, and GAAP 13 controllers focused on wind facilities –Average of approximately 11 years of experience –Most CPAs with national CPA firm experience The controllers for wind are directly and indirectly supported by approximately 45 systems, financial reporting, and processing support personnel

43. Wind Tour 2004 43 FPL Power Generation Division Organization Sr. Vice President of Power Generation Division Power Generation Division Tony Rodriquez Jim Keener Vice President Wind Operations, PGD Start-up Assurance and Commissioning Vice President FPL Operations Al Alfonso General Manager Production Assurance General Manager Business Services Sr. Director Central Maintenance Vice President Technical Services Vice President FPL Energy Operations Jim Keener Bob Fritz Pam Sonnelitter Bill Brannen Pete Kiernan Keith Hardy Operations Support

44. Wind Tour 2004 44 FPLE Wind Operations Organization

45. Wind Tour 2004 45 FPL Energy – Operations Largest wind farm operators in the world –Operate and maintain over 6,000 WTGs –Operations Team with over 200 personnel dedicated to the Wind Business (not just a small part of a gas group) –Fleet Teams and Project Assurance Engineers that specialize in turbine technologies –Dedicated SMEs for each discipline including civil, wind, turbines, electrical, and transmission

46. Wind Tour 2004 46 Leveraging Technology to Improve Performance Monitors real-time and historical power plant data Provides live video and audio links Provides for real-time benchmarking performance among similar components across the fleet Fleet Performance and Diagnostic Center

47. Wind Tour 2004 47 Quality Focus Enabling Us to Deliver Results Process mindset Utilizing quality tools and techniques ingrained in culture Replicating and adopting best practices across the fleet Percent - 100 SHAFT FAILURE D. Assembly Possible cause Effect B. Turbine Location B1. windy ridge C. Design E. Incorrect Operation E2. Power production E1. Past Operations Ran wind 1989 season @125KW A1. Poor Quality Control Surface flaws B2. Tower wake D1. Blade Calibration D2. Proper Power Lock torque Incorrect Radius C4. Locking Device SKF taper lock Power lock C1. Shaft Diameter C2. Material spec C3. Load Model procedure tool calibration Control system problem allowed negative pitch angle operation Run @110 KW vs. rated 100KW A. Manufacturing YBO YBSYBIMMBMFW Loss of Machine Assembly Pareto 1998-2002 WTG Losses - 0 0 - 72 - n=72

48. Wind Tour 2004 48 FPL Energy - Operations Results Best in class availability results for wind farm operations –Fleet wide availability of greater than 96% across 6,000 WTGs –Newer WTGs operated at greater than 97% availability –Operate over 2,000, 15+ year old Kenetech WTGs with over 92% availability Apply best practices and economies of scale to reduce O&M costs to lowest in industry

49. Wind Tour 2004 49