Profile

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of the company, is a leader in the world of clean and “alternative”

energy. FPL is tops in wind energy in the U.S. and operates the two

largest solar fields in the world.

By year end 2007, FPL Energy will have more than 5,000 MW

of wind assets in the U.S., with more than 50 wind farms in 16 states, which, according to a recent article in the New York Times, means the

company will have $6 billion invested in wind energy production.

“Around the world, FPL Group is the second-biggest wind generating utility, after Iberdrola of Spain,” wrote the author of the Times article.

develop new capacity in renewable energy.

“These new investments...demonstrate FPL Group’s continued

commitment to improve the environment and reaffirm our leadership

position among U.S. utilities to combat global warming,” said Hay.

FPL Energy also operates 83 hydroelectric power units at 24

stations in Maine and numerous natural gas plants in other states. On

the nuclear side, FPL Group operates four nuclear power plants and

recently acquired a fifth. There are the St. Lucie ( 1,678 MW) and

Turkey Point ( 1,386 MW) plants in south Florida; a majority interest

in Seabrook Station in New Hampshire ( 1,244 MW); and a 70 percent

interest in the Duane Arnold Energy Center in

Iowa (605 MW). A proposed uprate at the two

Florida plants could add approximately 400

MW to the output of those plants by 2012. Just

recently, FPL Energy completed the purchase

of the two-unit, 1,023 MW Point Beach nuclear

power plant in Wisconsin from We Energies.

Wind turbines at Wilton Wind Energy Center, in central North Dakota. Owned and operated by a subsidiary of FPL Energy, the facility produces 49. 5 megawatts of electricity. Photo, FPL Group.

In July, FPL Energy made another major decision aimed at

reducing greenhouse gases, unveiling a $20 billion plan to triple its

wind generating capacity. The company expects to add between 8,000

and 10,000 MW of wind energy by the end of 2012.

Two months later, FPL Group announced a $2.4 billion

investment program aimed at increasing U.S. solar thermal energy

output. Initiatives include investments of up to $1.5 billion in new

solar thermal generating facilities in Florida and other states over the

next seven years, starting with a project at Florida Power & Light. The

utility will also spend up to $500 million to create a smart network

that will provide its 4. 5 million Florida customers with enhanced

energy management capabilities.

FPL Energy plans to launch a nationwide renewable energy

program early next year that will allow residential and business

customers to take an active role in reducing greenhouse gas

emissions and help develop new sources of renewable energy.

Under this program, consumers will be able to purchase products

associated with Renewable Energy Credits (REC) generated by

FPL Energy’s renewable energy facilities. The project is expected

to generate revenues of about $400 million during its first five years

of operation—and 100 percent of those revenues will be used to

From outsider to industry leader

Lewis Hay III, chairman and CEO of FPL

Group, joined FPL Group in 1999 as chief

financial officer. He was promoted to president

of FPL Energy the following year, and then in

June 2001, he was named president and CEO of

FPL Group and chairman in January 2002.

In other words, after less than two years

with the company, Mr. Hay was elected

president and CEO.

In his interview, Mr. Hay talked about the

new directions FPL Group is taking. Maybe

because he’s an engineer, when he approaches

a problem like controlling greenhouse gases,

he tries to solve it logically. (Why does FPL

prefers a carbon fee? “First, it is simple.”) Maybe because he was an

“outsider” to the utility business when he started, he’s been willing

to break new ground. (“We have sought to look ahead and anticipate

rather than to wait and react.”) Whatever the reason, FPL Group, our

2007 Utility of the Year, is an exciting company now and one we’ll be

watching for years to come.

• • •

The utility industry has a reputation for being
conservative and slow to adopt new ideas. Is that
changing?

I believe that is generally the case. We’re proud that

FPL Group has, for many years, been an industry leader

in successfully developing and implementing new ideas. We have

sought to look ahead and anticipate rather than to wait and react. We

began investing in wind and solar power in the 1990s, well before

many businesses understood the importance of clean, renewable

energy, or saw the opportunities for growth and profitability. We

were among the first electric utilities to adopt a strong public position

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