UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of earliest event reported: December 1, 1998
Exact name of Registrants as specified in their IRS Employer
Commission charters, addresses of principal executive Identification
File Number offices and Registrants' phone number Number
- ----------- ----------------------------------------------- --------------
1-8841 FPL GROUP, INC. 59-2449419
1-3545 FLORIDA POWER & LIGHT COMPANY 59-0247775
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000
State or other jurisdiction of incorporation: Florida
Item 5. Other Events
Reference is made to Item 1. Business - FPL Operations - Retail Ratemaking and
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations - Results of Operations in the 1997 Form 10-K for FPL
Group, Inc. and Florida Power & Light Company (FPL) and Item 5. (a) - Other
Information in the FPL Group, Inc. and FPL Form 10-Q for the quarterly period
ended September 30, 1998.
On December 1, 1998, the Florida Public Service Commission (FPSC) approved
an agreement regarding FPL's allowed regulatory return on equity (ROE),
equity ratio and special amortization program. The FPSC is expected to
issue an order by December 21, 1998. Affected parties have 21 days
following issuance of an order to protest the FPSC's decision and request a
hearing.
Under the agreement, FPL's authorized ROE would be reduced from a range of
11.0% to 13.0% to a range of 10.2% to 12.2% effective January 1, 1999. For
purposes of calculating ROE, FPL would agree to a maximum equity ratio of
55.83% (which has been adjusted to reflect certain discounted long-term
power purchase contracts) through 2000. Also under the agreement, FPL's
special amortization program would be extended through 2000 and, effective
November 1, 1998, the program would be modified to include an additional
fixed amount of $140 million per year over and above the amount of
amortization based on the level of retail base revenues recorded under the
current program. In addition, the program would be expanded to allow the
amortization of certain additional costs as may be determined appropriate by
the FPSC in the future.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
FPL Group, Inc.
Florida Power & Light Company
(Registrants)
Date: December 2, 1998
K. MICHAEL DAVIS
----------------------------
K. Michael Davis
Controller and Chief Accounting Officer of FPL Group, Inc.
Vice President, Accounting, Controller and
Chief Accounting Officer of Florida Power & Light Company
