Moray Dewhurst Chief Financial Officer Safe Harbor Statement

Moray Dewhurst Chief Financial Officer

Safe Harbor Statement: Any statements made herein about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ substantially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in FPL Group's 2001 SEC Form 10 -K.

Capitalizing on Our Strengths u u u Premier integrated utility – high growth, stable customer base Successful wholesale generation business – well hedged portfolio with predictable earnings growth Strong balance sheet – 51% Debt to Capital 1, A 2 / A credit rating 2 Substantial cash flow to fund expansion – $1. 4 billion operating cash flow in 2001, net of dividends High degree of earnings visibility 1 Pro forma for offerings 2 Corporate credit rating 3

Premier Electric Utility u Favorable customer mix u Strong customer and usage growth u Operational excellence u Proven cost management u Constructive regulatory environment Attractive financial returns 4

High Growth Utility With Favorable Customer Mix u Strong demand growth 1 4% 3% 3% – 2. 1% annual increase in customer accounts 37% – 1. 1% annual increase in usage per customer u Generation Other Industrial – 2, 700 MW added in 2001 -2003 Commercial 1 Over last 10 years 5 32% – 16, 619 MW – 1, 900 MW more by 2006 32% 56% 33% Residential FPL Industry Average

Operational Excellence Plant Availability Service Reliability 2001 Outage Time Per Customer (Min. ) 107 69 FPL Over a Decade of O&M Reductions (Cents per Kilowatt Hour) Industry Average Superior Cost Management (O&M $ per customer) Industry Average Down 40% since 1990 FPL 6 FPL = 36% better than average

FPL Rates Lower Than National, Florida Averages $76. 22 FPL Comparisons of a 1, 000 k. Wh residential bill 7 $81. 93 National Average $86. 45 FPC and TECO Average

Constructive Regulatory Environment u u 8 Vertically integrated utility model Fuel, capacity charges directly passed through to customers “Rate certainty” through end of 2005 – incentive-based agreement – “win-win” revenue sharing provision – no ROE limits – shareholders benefit from productivity improvements No current activity on wholesale restructuring “I just don’t think there’s a sense of urgency to this. ” - Governor Jeb Bush

Major U. S. Wholesale Generator Attractive, visible growth – average earnings growth >20% from identified projects through 2005 u Low-risk approach – diversified by region, fuel source – well-hedged portfolio – emphasis on base-load assets u Low cost provider – modern, efficient, clean plants • 5, 063 MW in operation – operational excellence • presence in 18 u Conservative, integrated asset states optimization function u 10

Diversified Portfolio 11, 588 Net MW in Operation Year-end 2004 Regional Diversity Northeast 26% Central 37% Mid-Atlantic 21% West 16% 11 Fuel Diversity Gas 59% Other 2% Hydro 3% Wind 21% Oil 7% Assumes addition of 1, 000 mw of wind. Percentages may not add to 100% due to rounding. Nuclear 9%

Disciplined Growth Strategy u Grow generation portfolio in prudent way – aggressive wind development – focused fossil development – pursuit of M&A opportunities u Optimize asset value – integrated operations, business management and marketing and trading capabilities Hedge position via substantial contract coverage Moderate risk by regional and fuel diversity Manage portfolio actively u u u 12

Disciplined Growth (Projected Operating Net-MW) +11, 500 MW Marcus Hook New Wind Calhoun Forney Seabrook New Wind Blythe RISEP Bayswater Bastrop 5, 063 MW Existing Plants 2001 97 13 98 99 00 01 02 03 04

Seabrook Acquisition u u u 14 A premier nuclear plant Attractive price Plays to our strengths – superior operating skills – northeast trading expertise Immediately accretive – 1 - 4 cents in 2003 – 10 - 12 cents avg. ‘ 03 - ‘ 06 – accelerating thereafter Attractive financial returns – strong cash flow – substantial NPV – 18% - 20% ROE Based on current forward price curves

Wind Energy: Unique Advantage u Nearly 1, 500 net MW in operation – U. S. market leader with 1/3 market share u Supported by policy trends (RPS, PTCs) and economics u Attractive financial characteristics – long-term power contracts (15 – 25 years) – ROEs in the high teens/low 20 s – accretive in first full year u 15 Additional 1, 000 – 2, 000 MW by 2002 - 2003

Conservative Risk Management Marketing & Trading Asset Optimization Risk Reduction Risk Control 16

Well-Hedged Position 2002 = 79% 1 2003 = 51% Merchant MW Committed MW 17 1 For the remaining months in 2002

ERCOT Spot Spark Spreads on Peak ($ per MWh) Current Forward Spark Spread 2002 2003 18 $9. 33 $6. 38 Contract % under Spark Spread Contract $14. 83 $15. 83 81% 50%

Enhancing Profitability in ERCOT 0. 50 - 1. 50 8. 00 - 9. 00 6. 00 - 7. 00 19 0. 25 1. 00+ 15. 75 - 18. 75

Strong Financial Position u Financial discipline u Strong credit ratings A 2 / A = FPL Group Capital Aa 3 / A = Florida Power & Light Company u 13. 5% ROE in 2001 u 2001 net income of nearly $800 million 1 u Prudent dividend policy 1 Excluding non-recurring items 20 2 Pro forma for recent offerings 2

Financial Strength EPS Growth 7. 1% average annual EPS growth rate 21 Excluding non-recurring items and effects of FAS 133

Capital Plan Supports Disciplined Growth Strategy Projected Capital Sources & Uses 2002 - 2005 ($ billion) 8. 0 – 10. 0 Future debt issuance 0. 5 – 1. 5 Current and completed equity/equity-linked issuance, benefit plans Wind 1. 0 – 2. 0 1. 5 - 2. 0 Operating cash flow less dividends Seabrook 0. 8 Gas 1. 6 6. 0 - 6. 5 Regulated utility Sources 22 FPL Energy 4. 6 - 5. 6 Uses

Strong Rating Valuable, but not a Fixed Target 23 Credit Rating Long-term goal: ‘A’ or equivalent… Investment Grade …subject to fluctuating agency standards u Absolute goal - strong investment grade u Relative goal - upper band of peer group

Financial Outlook u u u 24 Underlying average EPS growth of 6 -8% per year – FPL earnings growth 4 -5% average – FPL Energy earnings growth 20 -30% average 2002 EPS guidance: $4. 70 - $4. 75 – FPL approximately flat, assuming normal weather – FPL Energy up 15 -20%, assuming no major change to market prices 2003 EPS guidance: $5. 10 - $5. 20

Relative Low Risk, High Return FPL Group represents one of best combinations of risk, return and earnings growth among major electric companies High Earnings Growth/ Return FPL Group Low High Risk 25

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