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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.
• • •
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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