This summary is based on the first quarter fiscal 2008 earnings call conducted by FPL Group Inc. (FPL: chart) on April 30, 2008.

Management:

Director, Investor Relations: Jim Von Riesemann
Chairman and Chief Executive Officer, FPL Group: Lewis Hay III
Chief Financial Officer (designate), FPL Group: Armando Pimentel Jr.
President and Chief Operating Officer, FPL Group: James L. Robo
Chief Financial Officer, FPL Group: Moray P. Dewhurst
President, Florida Power & Light Company: Armando Olivera
President of FPL Energy: Mitch Davidson

Key Investors Issues

- EPS were 62 cents a share compared to 38 cents a share last year.
- Net income rose to $249 million from $150 million a year earlier.
- Adjusted earnings were 76 cents a share, up from 70 cents a share a year earlier.

First Quarter Highlights

Net income on a GAAP basis was $249 million, or 62 cents per share, compared with $150 million, or 38 cents per share, in the first quarter of 2007.

- Net income included a net unrealized after-tax loss of $52 million associated with the mark-to-market effect of non-qualifying hedges and a $4 million after-tax loss related to other than temporary impairments on investments, or OTTI. The results for last year’s first quarter included a net unrealized after-tax loss of $127 million primarily associated with the mark-to-market effect of non-qualifying hedges.
- Excluding the mark-to-market effect of non-qualifying hedges and OTTI, adjusted earnings were $305 million, or 76 cents per share, for the first quarter of 2008, compared with $277 million, or 70 cents per share, in the first quarter of 2007.

FPL Group’s rate-regulated utility subsidiary, Florida Power & Light, reported net income of $108 million or 27 cents per share per share, compared with $126 million, or 32 cents per share, for the prior-year quarter.

- Customer growth slowed as a result of economic conditions in Florida, particularly those related to the housing market. The average number of Florida Power & Light accounts increased by approximately 40,000 over the first quarter of 2007, or about 0.9%, which is about half the long-term historical growth rate of almost two percent. For the remainder of the year, based on available data, Florida Power & Light expects new customers to grow at a relatively modest pace, in line with actual results from the first quarter.
- At the same time, electricity usage per customer, as compared to the first quarter of last year, was down 0.6%.

- Earnings benefited from the addition of Turkey Point Unit 5 that came into service in May of 2007. This plant came into rate base as a result of the generation base rate adjustment mechanism that is part of the 2005 rate agreement. On an after-tax basis, that base rate adjustment increased earnings by approximately $15 million.
- Depreciation increased $5 million and allowance for funds used during construction (AFUDC) decreased $5 million, both after tax, primarily attributable to Turkey Point Unit 5.
- Operations and maintenance (O&M) expenses were generally in line with expectations, although higher than last year. The net earnings impact of the additional O&M expense was approximately $25 million after tax when compared to the prior year’s corresponding quarter. The additional expense reflects additional O&M expenses associated with investing to ensure the long-term reliability of Florida Power & Light’s nuclear units, and the timing of maintenance and overhaul activities, as well as other reliability work.

Florida Power & Light made good progress on several critical projects. Construction of West County Energy Center Units 1 and 2 in Palm Beach County continues on schedule, and this combined-cycle, natural gas-fired generating units are expected to be completed in 2009 and 2010, respectively.

The combined cost for the two units is approximately $1.3 billion, and each unit will have a capacity of approximately 1,220 megawatts.

- In April, Florida Power & Light petitioned the Florida Public Service Commission for approval to build a third combined-cycle gas plant at the West County Energy Center. West County Unit 3 will be identical to Units 1 and 2 and, if approved, would be in operation by 2011. All three units will provide customers with net savings, since the impact on base rates is more than offset by greater fuel efficiency.
- In March, the PSC approved Florida Power & Light’s need petition to build two nuclear power units at the company’s Turkey Point generating complex in Miami-Dade County. While no final commitment has yet been made, the two new units, if built, would add between 2,200 and 3,040 megawatts and would go into service in 2018 and 2020. The combined estimated cost for the new units would be $12 billion to $24 billion. This was the first time in more than 30 years a utility received approval from a state commission to proceed with plans to construct a new nuclear plant. Florida Power & Light continues to believe that if the associated risks can be adequately managed, new nuclear capacity can provide large economic and environmental benefits to its customers.
- Florida Power & Light issued $600 million of first mortgage bonds on attractive terms, reflecting the company’s excellent credit ratings as well as its strong financial position and liquidity.

FPL Energy, the competitive energy subsidiary of FPL Group, had net income on a GAAP basis of $164 million or 41 cents per share, compared to $45 million, or 11 cents per share, in the prior year quarter.

- FPL Energy’s net income included a net unrealized after-tax loss of $56 million associated with the mark-to-market effect of non-qualifying hedges and OTTI.
- The loss associated with the mark-to-market effect of non-qualifying hedges actually is good news for FPL Energy, since the value of the company’s unhedged asset positions rose with the general rise in forward power and natural gas prices, while the loss on the hedges was offset by increases in the value of the underlying assets. Neither of these value increase effects is shown in the company’s results. Since the end of 2007, the ten-year NYMEX gas strip has risen about 16%, increasing the value of the FPL Energy portfolio significantly.
- The results for last year’s first quarter included a net unrealized after-tax loss of $127 million primarily associated with the mark-to-market effect of non-qualifying hedges.
- Excluding the mark-to-market effect of non-qualifying hedges and OTTI, adjusted net income for FPL Energy was $220 million, or 55 cents per share, compared to $172 million, or 43 cents per share, in 2007.

- Growth in adjusted earnings at FPL Energy in the first quarter was driven principally by the addition of new projects, including new wind projects and the Point Beach nuclear facility; improved pricing in some existing assets and higher earnings associated with wholesale marketing and trading operations. These gains were partially offset by an unplanned outage at the Seabrook nuclear plant, which was related to a switchyard equipment failure.
- Since the first quarter of last year, FPL Energy has added 2,171 megawatts of new investments to its portfolio, increasing after-tax earnings by approximately $31 million. About half of the new investments, or 1,099 megawatts, are new wind facilities that FPL Energy developed, built and now has placed into service. Almost all the remaining addition comes from the Point Beach nuclear facility.

- FPL Energy continues to develop its full range of investment opportunities, but maintains a clear focus on its national leadership in wind and solar energy. FPL Energy is on course to add 7,000-9,000 megawatts of new wind capacity from 2008-2012 and expects to add between 200-400 megawatts of solar generation by 2012.
- In March, FPL Energy, through a wholly-owned subsidiary, filed a certification application with the California Energy Commission (CEC) to build, own and operate a 250-megawatt solar thermal energy plant in Kern County, California.
- FPL Energy recently agreed to purchase 85 megawatts of an operating wind facility in Canada. This entry-point acquisition is expected to allow FPL Energy to pursue additional opportunities in Canada.
- FPL Energy’s wind program continues to make progress. Thus far in 2008, the company completed construction of 186 megawatts of new wind projects. It has approximately 525 megawatts under construction, all of which are expected to reach commercial operation by the end of the year. For 2008, FPL Energy expects to add 1,100-1,300 megawatts of wind capacity.

- The loss in Corporate and Other increased $2 million for the first quarter of 2008 compared to the first quarter of 2007.