UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Exact name of Registrants as specified
Commission in their charters, address of principal IRS Employer
File Number Executive offices and Registrants' Identification
telephone 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 or organization: Florida
Indicate by check mark whether the registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months and (2) have been subject to such
filing requirements for the past 90 days. Yes X No ___
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares outstanding of each class of FPL Group, Inc. common
stock, as of the latest practicable date: Common Stock, $.01 par value,
outstanding at September 30, 2000: 176,885,789 shares.
As of September 30, 2000, there were issued and outstanding 1,000 shares of
Florida Power & Light Company's common stock, without par value, all of
which were held, beneficially and of record, by FPL Group, Inc.
______________________________
This combined Form 10-Q represents separate filings by FPL Group, Inc. and
Florida Power & Light Company. Information contained herein relating to an
individual registrant is filed by that registrant on its own behalf. Florida
Power & Light Company makes no representations as to the information relating
to FPL Group, Inc.'s other operations.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and
Florida Power & Light Company (FPL) (collectively, the Company) are hereby
filing cautionary statements identifying important factors that could cause
the Company's actual results to differ materially from those projected in
forward-looking statements (as such term is defined in the Reform Act) made
by or on behalf of the Company in this combined Form 10-Q, in
presentations, in response to questions or otherwise. Any statements that
express, or involve discussions as to expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but not
always, through the use of words or phrases such as will likely result, are
expected to, will continue, is anticipated, estimated, projection, outlook)
are not statements of historical facts and may be forward-looking.
Forward-looking statements involve estimates, assumptions and
uncertainties. Accordingly, any such statements are qualified in their
entirety by reference to, and are accompanied by, the following important
factors that could cause the Company's actual results to differ materially
from those contained in forward-looking statements made by or on behalf of
the Company.
Any forward-looking statement speaks only as of the date on which such
statement is made, and the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date
on which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time and it is not
possible for management to predict all of such factors, nor can it assess
the impact of each such factor on the business or the extent to which any
factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statement.
Some important factors that could cause actual results or outcomes to
differ materially from those discussed in the forward-looking statements
include changes in laws or regulations, changing governmental policies and
regulatory actions, including those of the Federal Energy Regulatory
Commission (FERC), the Florida Public Service Commission (FPSC), the Public
Utility Regulatory Policies Act of 1978, as amended (PURPA), the Public
Utility Holding Company Act of 1935, as amended and the U. S. Nuclear
Regulatory Commission, with respect to allowed rates of return including
but not limited to return on common equity and equity ratio limits,
industry and rate structure, operation of nuclear power facilities,
acquisition, disposal, depreciation and amortization of assets and
facilities, operation and construction of plant facilities, recovery of
fuel and purchased power costs, decommissioning costs, and present or
prospective wholesale and retail competition (including but not limited to
retail wheeling and transmission costs).
The business and profitability of the Company are also influenced by
economic and geographic factors including political and economic risks,
changes in and compliance with environmental and safety laws and policies,
weather conditions (including natural disasters such as hurricanes),
population growth rates and demographic patterns, competition for retail
and wholesale customers, availability, pricing and transportation of fuel
and other energy commodities, market demand for energy from plants or
facilities, changes in tax rates or policies or in rates of inflation or in
accounting standards, unanticipated delays or changes in costs for capital
projects, unanticipated changes in operating expenses and capital
expenditures, capital market conditions, competition for new energy
development opportunities and legal and administrative proceedings (whether
civil, such as environmental, or criminal) and settlements.
All such factors are difficult to predict, contain uncertainties which may
materially affect actual results, and are beyond the control of the
Company.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
FPL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(millions, except per share amounts)
(unaudited)
<TABLE><CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
OPERATING REVENUES ............................................... $2,087 $1,892 $5,225 $4,918
OPERATING EXPENSES:
Fuel, purchased power and interchange .......................... 845 693 1,992 1,788
Other operations and maintenance................................ 314 309 907 910
Depreciation and amortization .................................. 237 245 763 768
Impairment loss on Maine assets ................................ - - - 176
Taxes other than income taxes .................................. 180 175 469 462
Total operating expenses ..................................... 1,576 1,422 4,131 4,104
OPERATING INCOME ................................................. 511 470 1,094 814
OTHER INCOME (DEDUCTIONS):
Interest charges ............................................... (74) (58) (201) (163)
Preferred stock dividends - FPL ................................ (4) (4) (11) (11)
Gain on sale of Adelphia Communications Corporation stock ...... - - - 149
Other - net .................................................... 46 39 80 79
Total other income (deductions) - net ........................ (32) (23) (132) 54
INCOME BEFORE INCOME TAXES ....................................... 479 447 962 868
INCOME TAXES ..................................................... 165 156 323 291
NET INCOME ....................................................... $ 314 $ 291 $ 639 $ 577
Earnings per share of common stock:
Basic .......................................................... $ 1.85 $ 1.70 $ 3.75 $ 3.36
Assuming dilution .............................................. $ 1.84 $ 1.70 $ 3.75 $ 3.36
Dividends per share of common stock .............................. $ 0.54 $ 0.52 $ 1.62 $ 1.56
Weighted-average number of common shares outstanding:
Basic .......................................................... 170 171 170 171
Assuming dilution .............................................. 171 171 171 172
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the combined Annual Report on Form 10-K for
the fiscal year ended December 31, 1999 (1999 Form 10-K) for FPL Group and
FPL.
FPL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
(unaudited)
<TABLE><CAPTION>
September 30, December 31,
2000 1999
<S> <C> <C>
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and other property,
including nuclear fuel and construction work in progress ....................... $20,582 $19,554
Less accumulated depreciation and amortization ................................... (10,940) (10,290)
Total property, plant and equipment - net ...................................... 9,642 9,264
CURRENT ASSETS:
Cash and cash equivalents ........................................................ 377 361
Customer receivables, net of allowances of $8 and $7, respectively ............... 690 482
Materials, supplies and fossil fuel inventory - at average cost .................. 331 343
Deferred clause expenses ......................................................... 185 54
Other ............................................................................ 260 133
Total current assets ........................................................... 1,843 1,373
OTHER ASSETS:
Special use funds of FPL ......................................................... 1,556 1,352
Other investments ................................................................ 655 611
Other ............................................................................ 1,241 841
Total other assets ............................................................. 3,452 2,804
TOTAL ASSETS ....................................................................... $14,937 $13,441
CAPITALIZATION:
Common stock ..................................................................... $ 2 $ 2
Additional paid-in capital........................................................ 2,848 2,904
Retained earnings................................................................. 2,829 2,465
Accumulated other comprehensive loss.............................................. - (1)
Total common shareholders' equity............................................... 5,679 5,370
Preferred stock of FPL without sinking fund requirements ......................... 226 226
Long-term debt ................................................................... 3,480 3,478
Total capitalization ........................................................... 9,385 9,074
CURRENT LIABILITIES:
Debt due within one year ......................................................... 1,178 464
Accounts payable ................................................................. 613 407
Deferred clause revenues ......................................................... 81 116
Accrued interest, taxes and other ................................................ 1,081 883
Total current liabilities ...................................................... 2,953 1,870
OTHER LIABILITIES AND DEFERRED CREDITS:
Accumulated deferred income taxes ................................................ 1,254 1,079
Unamortized regulatory and investment tax credits ................................ 279 310
Other ............................................................................ 1,066 1,108
Total other liabilities and deferred credits ................................... 2,599 2,497
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES ............................................... $14,937 $13,441
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the 1999 Form 10-K for FPL Group and FPL.
FPL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
(unaudited)
<TABLE><CAPTION>
Nine Months Ended
September 30,
2000 1999
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES ............................................. $1,055 $1,518
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures of FPL ......................................................... (915) (607)
Independent power investments ....................................................... (394) (1,448)
Other - net ......................................................................... (82) 160
Net cash used in investing activities ........................................... (1,391) (1,895)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt .......................................................... 387 1,216
Retirement of long-term debt ........................................................ (272) (584)
Increase in commercial paper ........................................................ 597 284
Repurchase of common stock .......................................................... (85) (89)
Dividends on common stock ........................................................... (275) (267)
Net cash provided by financing activities ....................................... 352 560
Net increase in cash and cash equivalents ............................................. 16 183
Cash and cash equivalents at beginning of period ...................................... 361 187
Cash and cash equivalents at end of period ............................................ $ 377 $ 370
Supplemental disclosures of cash flow information:
Cash paid for interest (net of amount capitalized) .................................. $ 193 $ 161
Cash paid for income taxes .......................................................... $ 120 $ 323
Supplemental schedule of noncash investing and financing activities:
Additions to capital lease obligations .............................................. $ 42 $ 56
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the 1999 Form 10-K for FPL Group and FPL.
FLORIDA POWER & LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(millions)
(unaudited)
<TABLE><CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
OPERATING REVENUES ................................................. $1,917 $1,769 $4,788 $4,638
OPERATING EXPENSES:
Fuel, purchased power and interchange ............................ 774 646 1,845 1,679
Other operations and maintenance ................................. 258 258 745 791
Depreciation and amortization .................................... 221 234 722 743
Income taxes ..................................................... 165 156 326 306
Taxes other than income taxes .................................... 173 172 455 460
Total operating expenses ....................................... 1,591 1,466 4,093 3,979
OPERATING INCOME ................................................... 326 303 695 659
OTHER INCOME (DEDUCTIONS):
Interest charges ................................................. (47) (39) (129) (125)
Other - net ...................................................... - 4 (2) 8
Total other deductions - net ................................... (47) (35) (131) (117)
NET INCOME ......................................................... 279 268 564 542
PREFERRED STOCK DIVIDENDS .......................................... 4 4 11 11
NET INCOME AVAILABLE TO FPL GROUP .................................. $ 275 $ 264 $ 553 $ 531
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the 1999 Form 10-K for FPL Group and FPL.
FLORIDA POWER & LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
(unaudited)
<TABLE><CAPTION>
September 30, December 31,
2000 1999
<S> <C> <C>
ELECTRIC UTILITY PLANT:
Plant in service, including nuclear fuel and construction work in progress ....... $18,710 $18,162
Less accumulated depreciation and amortization ................................... (10,782) (10,184)
Electric utility plant - net ................................................... 7,928 7,978
CURRENT ASSETS:
Cash and cash equivalents ........................................................ 264 -
Customer receivables, net of allowances of $8 and $7, respectively ............... 622 433
Materials, supplies and fossil fuel inventory - at average cost .................. 277 299
Deferred clause expenses ......................................................... 185 54
Other ............................................................................ 223 107
Total current assets ........................................................... 1,571 893
OTHER ASSETS:
Special use funds ................................................................ 1,556 1,352
Other ............................................................................ 784 385
Total other assets ............................................................. 2,340 1,737
TOTAL ASSETS ....................................................................... $11,839 $10,608
CAPITALIZATION:
Common shareholder's equity ...................................................... $ 5,169 $ 4,793
Preferred stock without sinking fund requirements ................................ 226 226
Long-term debt ................................................................... 2,081 2,079
Total capitalization ........................................................... 7,476 7,098
CURRENT LIABILITIES:
Debt due within one year ......................................................... 577 219
Accounts payable ................................................................. 563 379
Deferred clause revenues ......................................................... 81 116
Accrued interest, taxes and other ................................................ 982 719
Total current liabilities ...................................................... 2,203 1,433
OTHER LIABILITIES AND DEFERRED CREDITS:
Accumulated deferred income taxes ................................................ 965 802
Unamortized regulatory and investment tax credits ................................ 279 310
Other ............................................................................ 916 965
Total other liabilities and deferred credits ................................... 2,160 2,077
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES ............................................... $11,839 $10,608
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the 1999 Form 10-K for FPL Group and FPL.
FLORIDA POWER & LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
(unaudited)
<TABLE><CAPTION>
Nine Months Ended
September 30,
2000 1999
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES ............................................. $ 964 $1,494
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ................................................................ (915) (607)
Other - net ......................................................................... (53) (55)
Net cash used in investing activities ........................................... (968) (662)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt .......................................................... 387 224
Retirement of long-term debt ........................................................ (272) (455)
Increase in commercial paper ........................................................ 241 -
Dividends ........................................................................... (488) (470)
Capital contributions from FPL Group ................................................ 400 -
Net cash provided by (used in) financing activities ............................... 268 (701)
Net increase in cash and cash equivalents ............................................. 264 131
Cash and cash equivalents at beginning of period ...................................... - 152
Cash and cash equivalents at end of period ............................................ $ 264 $ 283
Supplemental disclosures of cash flow information:
Cash paid for interest .............................................................. $ 124 $ 126
Cash paid for income taxes .......................................................... $ 74 $ 268
Supplemental schedule of noncash investing and financing activities:
Additions to capital lease obligations .............................................. $ 42 $ 56
Transfer of net assets to FPL FiberNet, LLC ........................................ $ 100 $ -
</TABLE>
This report should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements herein and the Notes to Consolidated
Financial Statements appearing in the 1999 Form 10-K for FPL Group and FPL.
FPL GROUP, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The accompanying condensed consolidated financial statements should be read
in conjunction with the 1999 Form 10-K for FPL Group and FPL. In the opinion
of FPL Group and FPL management, all adjustments (consisting of normal
recurring accruals) considered necessary for fair financial statement
presentation have been made. Certain amounts included in the prior year's
consolidated financial statements have been reclassified to conform to the
current year's presentation. The results of operations for an interim period
may not give a true indication of results for the year.
1. Merger
On July 30, 2000, FPL Group and Entergy Corporation (Entergy) entered into
an Agreement and Plan of Merger (merger agreement). The merger will be
accounted for as an acquisition of Entergy by FPL Group under the purchase
method of accounting. Based on the number of common shares outstanding on
the date the merger agreement was signed, FPL Group shareholders would own
57 percent of the common equity of the combined company, WCB Holding Corp.,
and Entergy shareholders would own 43 percent. Corporate headquarters of
the merged company will be located in Juno Beach, Florida, while the
utility group will be headquartered in New Orleans, Louisiana. WCB Holding
Corp.'s board of directors will initially consist of 15 members, eight from
FPL Group and seven from Entergy. The agreement has been unanimously
approved by FPL Group's and Entergy's board of directors and is conditioned
upon, among other things, the approvals of the shareholders of both FPL
Group and Entergy, as well as various regulatory bodies. Upon shareholder
approval of the merger, which is expected to occur in December 2000, FPL
Group expects to incur approximately $47 million of additional other
operations and maintenance expenses (O&M) associated with change in control
provisions in employment agreements and FPL Group's long-term incentive
plans. The companies' objective is to complete the merger by late 2001.
In connection with the merger, FPL Group's board of directors authorized a
share repurchase program totaling $570 million, which supercedes the
previous share repurchase program. See Note 4 - FPL Group Common Stock for
share repurchase activity.
2. Earnings Per Share
The following represents a reconciliation of FPL Group's basic earnings per
share to earnings per share assuming dilution:
<TABLE><CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
(millions, except per share amounts)
<S> <C> <C> <C> <C>
Net income .......................................................... $ 314 $ 291 $ 639 $ 577
Weighted-average number of common shares outstanding ................ 170.1 171.1 170.3 171.4
Effect of dilutive securities:
Options ........................................................... .2 .1 .1 .1
Performance shares ................................................ .2 .2 .2 .2
Diluted weighted-average number of common shares outstanding ........ 170.5 171.4 170.6 171.7
Earnings per share of common stock:
Basic ............................................................. $ 1.85 $ 1.70 $ 3.75 $ 3.36
Assuming dilution ................................................. $ 1.84 $ 1.70 $ 3.75 $ 3.36
</TABLE>
3. Deferred Clause Expenses
As part of the annual fuel clause filing with the FPSC in October 2000, FPL
requested approval to recover fuel costs that were in excess of the
projected amounts included in customer bills in 2000 (under-recovered fuel
costs). This process of recovering or refunding under- and over-recoveries
of fuel costs is a long-established practice. Under-recovered fuel costs
at September 30, 2000 totaled $491 million, $184 million of which is
included in deferred clause expenses and $307 million, the noncurrent
portion, is included in other assets in the consolidated balance sheets.
Under-recovered fuel costs at December 31, 1999 totaled $54 million and is
included in deferred clause expenses. The amount of under-recovered fuel
costs is unusually large at September 30, 2000 as a result of the
unanticipated rise in the cost of oil and natural gas. In the October 2000
filing with the FPSC, FPL proposed to recover the estimated under-recovered
fuel costs over a two-year period beginning in January 2001, rather than
the typical one-year time frame. FPL has also proposed that instead of
receiving a return on the unrecovered portion through the fuel clause, the
under-recovery would be included as a rate base regulatory asset over the
two-year recovery period. The FPSC will rule on FPL's proposal during a
hearing scheduled in November 2000.
FPL GROUP, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
4. Capitalization
FPL Group Common Stock - During the three and nine months ended September 30,
2000, FPL Group repurchased 862,000 shares and 1,612,400 shares of common
stock, respectively, under its share repurchase programs. Through October
31, 2000, 1,526,500 shares totaling $94 million have been repurchased under
the $570 million share repurchase program authorized in connection with the
proposed merger. See Note 1.
Long-Term Debt - In April 2000, FPL sold approximately $96 million principal
amount of variable-rate pollution control revenue refunding bonds maturing in
July 2022. The proceeds were used in July 2000 to redeem approximately $96
million of pollution control revenue refunding bonds, consisting of $76
million bearing interest at 7.3% and maturing in 2020 and $20 million with
variable rate interest maturing in 2024.
In June 2000, FPL sold approximately $49 million principal amount of
variable-rate solid waste disposal revenue refunding bonds maturing in 2025.
The proceeds were used to redeem, in June, August and September 2000, solid
waste disposal revenue bonds totaling $49 million bearing interest at fixed
rates ranging from 6.7% to 7.5%, as well as variable interest rates, and
maturing in 2020 to 2027.
In September 2000, FPL sold approximately $242 million principal amount of
variable-rate pollution control revenue refunding bonds maturing in September
2028. The proceeds will be used in December 2000 to redeem a total of
approximately $242 million variable-rate pollution control revenue refunding
bonds maturing at various dates between January 2026 and July 2029.
Other - Comprehensive income of FPL Group, totaling $314 million and $290
million for the three months ended September 30, 2000 and 1999 and $639
million and $575 million for the nine months ended September 30, 2000 and
1999, respectively, includes net income, changes in unrealized gains and
losses on securities and foreign currency translation adjustments.
Accumulated other comprehensive loss is separately displayed in the condensed
consolidated balance sheets of FPL Group.
5. Regulation
On October 16, 2000, FPL, together with Florida Power Corporation and Tampa
Electric Company, filed a joint proposal in response to the FERC's final
order requiring all investor-owned utilities to submit plans to create
regional transmission organizations (RTO) that would become operational by
December 15, 2001. The joint filing proposes a fully independent for-
profit transmission company that will be responsible for the transmission
lines that carry electricity from power plants primarily within the state
to substations in peninsular Florida. Under the proposed form of RTO, FPL
would contribute its transmission assets to an independent transmission
company, GridFlorida LLC (GridFlorida), that would own and operate the
system. In return, FPL would receive a non-voting ownership interest in
GridFlorida and account for its interest using the equity method. A
separate corporation will be formed that will own and manage GridFlorida.
In May 2000, the Governor of Florida signed an executive order creating the
Energy 2020 Study Commission to propose an energy plan and strategy for
Florida. The order requires that recommendations be made to the
legislature and Governor by December 1, 2001. The members of the
Commission were appointed in July 2000, and they held their first meeting
in September 2000. The first meeting resulted in a proposal to split the
energy study between wholesale and retail, with the Commission's
recommendations on wholesale restructuring to be provided by January 2001.
6. Commitments and Contingencies
Commitments - FPL has made commitments in connection with a portion of its
projected capital expenditures. Capital expenditures for the construction or
acquisition of additional facilities and equipment to meet customer demand
are estimated to be approximately $3.1 billion for 2000 through 2002.
Included in this three-year forecast are capital expenditures for 2000 of
approximately $1.3 billion, of which $915 million had been spent through
September 30, 2000. As of September 30, 2000, FPL Energy, LLC (FPL Energy)
has made commitments in connection with the development and expansion of
independent power projects totaling approximately $91 million. FPL Group and
its subsidiaries, other than FPL, have guaranteed approximately $508 million
of purchased power agreement obligations, debt service payments and other
payments subject to certain contingencies.
Insurance - Liability for accidents at nuclear power plants is governed by
the Price-Anderson Act, which limits the liability of nuclear reactor
owners to the amount of the insurance available from private sources and
under an industry retrospective payment plan. In accordance with this Act,
FPL maintains $200 million of private liability insurance, which is the
maximu
obtainable, and participates in a secondary financial protection system
under which it is subject to retrospective assessments of up to $363
million per incident at any nuclear utility reactor in the United States,
payable at a rate not to exceed $43 million per incident per year.
FPL participates in nuclear insurance mutual companies that provide $2.75
billion of limited insurance coverage for property damage, decontamination
and premature decommissioning risks at its nuclear plants. The proceeds
from such insurance, however, must first be used for reactor stabilization
and site decontamination before they can be used for plant repair. FPL
also participates in an insurance program that provides limited coverage
for replacement power costs if a nuclear plant is out of service because of
an accident. In the event of an accident at one of FPL's or another
participating insured's nuclear plants, FPL could be assessed up to $38
million in retrospective premiums.
In the event of a catastrophic loss at one of FPL's nuclear plants, the
amount of insurance available may not be adequate to cover property damage
and other expenses incurred. Uninsured losses, to the extent not recovered
through rates, would be borne by FPL and could have a material adverse
effect on FPL Group's and FPL's financial condition.
FPL self-insures the majority of its transmission and distribution (T&D)
property due to the high cost and limited coverage available from third-
party insurers. As approved by the FPSC, FPL maintains a funded storm and
property insurance reserve, which totaled approximately $221 million at
September 30, 2000, for uninsured property storm damage or assessments
under the nuclear insurance program. Recovery from customers of any losses
in excess of the storm and property insurance reserve will require the
approval of the FPSC. FPL's available lines of credit include $300 million
to provide additional liquidity in the event of a T&D property loss.
Contracts - FPL Group has entered into a $3.7 billion long-term agreement
with General Electric Company for the supply of 66 gas turbines from 2000
through 2004 and parts, repairs and on-site services through 2011. The
turbines are intended to support expansion at FPL and FPL Energy, and the
related commitments for a portion of the 66 gas turbines are included in
Commitments above.
FPL has entered into long-term purchased power and fuel contracts. Take-
or-pay purchased power contracts with the Jacksonville Electric Authority
(JEA) and with subsidiaries of The Southern Company (Southern Companies)
provide approximately 1,300 megawatts (mw) of power through mid-2010 and
383 mw thereafter through 2021. FPL also has various firm pay-for-
performance contracts to purchase approximately 900 mw from certain
cogenerators and small power producers (qualifying facilities) with
expiration dates ranging from 2002 through 2026. The purchased power
contracts provide for capacity and energy payments. Energy payments are
based on the actual power taken under these contracts. Capacity payments
for the pay-for-performance contracts are subject to the qualifying
facilities meeting certain contract conditions. FPL has long-term
contracts for the transportation and supply of natural gas, coal and oil
with various expiration dates through 2021. FPL Energy has long-term
contracts for the transportation and storage of natural gas with expiration
dates ranging from 2005 through 2017, and a contract for the supply of
natural gas that expires in mid-2002.
The required capacity and minimum payments under these contracts for the
remainder of 2000 (October-December) and for 2001 through 2004 are
estimated to be as follows:
<TABLE><CAPTION>
2000 2001 2002 2003 2004
(millions)
<S> <C> <C> <C> <C> <C>
FPL:
Capacity payments:
JEA and Southern Companies .......................................... $ 50 $200 $200 $200 $200
Qualifying facilities (a) ........................................... $ 70 $320 $330 $340 $350
Minimum payments, at projected prices:
Natural gas, including transportation ............................... $140 $650 $655 $630 $615
Coal ................................................................ $ 15 $ 45 $ 45 $ 20 $ 10
Oil ................................................................. $ 40 $270 $ 10 $ - $ -
FPL Energy:
Natural gas, including transportation and storage ..................... $ 6 $ 20 $ 20 $ 15 $ 15
_______________
(a) Excludes capacity payments associated with two contracts that were in dispute. The capacity payments are no longer
required pursuant to an approved settlement. See Litigation.
</TABLE>
Charges under these contracts were as follows:
<TABLE><CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
2000 Charges 1999 Charges 2000 Charges 1999 Charges
Energy/ Energy/ Energy/ Energy/
Capacity Fuel Capacity Fuel Capacity Fuel Capacity Fuel
(millions)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FPL:
JEA and Southern Companies . $47(a) $ 42(b) $46(a) $ 40(b) $150(a) $114(b) $146(a) $ 94(b)
Qualifying facilities ...... $80(c) $ 41(b) $76(c) $ 35(b) $238(c) $101(b) $227(c) $ 83(b)
Natural gas, including
transportation ........... $ - $167(b) $ - $104(b) $ - $379(b) $ - $290(b)
Coal ....................... $ - $ 13(b) $ - $ 10(b) $ - $ 37(b) $ - $ 32(b)
Oil ........................ $ - $140(b) $ - $ 41(b) $ - $250(b) $ - $ 81(b)
FPL Energy:
Natural gas transportation $ - $ 4 $ - $ 4 $ - $ 12 $ - $ 12
and storage
_______________
(a) Recovered through base rates and the capacity cost recovery clause (capacity clause).
(b) Recovered through the fuel and purchased power cost recovery clause (fuel clause).
(c) Recovered through the capacity clause.
</TABLE>
Litigation - In 1997, FPL filed a complaint against the owners of two
qualifying facilities (plant owners) seeking an order declaring that FPL's
obligations under the power purchase agreements with the qualifying
facilities were rendered of no force and effect because the power plants
failed to accomplish commercial operation before January 1, 1997, as
required by the agreements. The plant owners disputed this claim. In
1997, the plant owners filed for bankruptcy under Chapter XI of the U.S.
Bankruptcy Code and entered into an agreement with the holders of more than
70% of the bonds that partially financed the construction of the plants.
This agreement gives the holders of a majority of the principal amount of
the bonds (the majority bondholders) the right to control, fund and manage
any litigation against FPL and the right to settle with FPL on any terms to
which the majority bondholders agree, subject to approval by the bankruptcy
court. In 1998, the plant owners (through the attorneys for the majority
bondholders) filed an answer denying the allegations in FPL's complaint and
asserting counterclaims for approximately $2 billion, consisting of all
capacity and energy payments that could have been earned over the 30-year
term of the power purchase agreements and three times their actual damages
for alleged violations of Florida antitrust laws by FPL, FPL Group and FPL
Group Capital Inc (FPL Group Capital), plus attorneys' fees. Disclosures
by the plant owners stated that they were seeking $322.5 million in
damages, plus prejudgement interest. In 1998, the trial court dismissed
all of the plant owners' antitrust claims.
In July 2000, FPL, the majority bondholders, and the trustee of the
indenture under which the bonds were issued entered into a conditional
settlement agreement and release (settlement). Under the terms of the
settlement, the trustee would be paid $222.5 million plus the amount of the
security deposits, to be distributed as directed by the bankruptcy court.
The settlement was conditioned upon (i) the approval of the bankruptcy
court, which was obtained on September 5, 2000, and (ii) the approval of
the FPSC, which was obtained on October 17, 2000. On November 9, 2000, an
individual filed a petition with the FPSC protesting the FPSC's approval of
the settlement and requesting a hearing. The petition will prevent the
FPSC's approval order from becoming final until the issues raised by it are
resolved. FPL expects to recover the cost of the settlement through the
fuel and capacity clauses over a five-year period beginning January 1,
2002. FPL also expects that from the date the settlement payment is made
until December 31, 2001, FPL will not receive a return on the unrecovered
amount through the fuel and capacity clauses, but instead, the settlement
amount will be included as a rate base regulatory asset over that period.
FPL estimates the net present value of the savings to its customers from
the settlement versus the payments that would have been due under the power
purchase agreements to be in excess of $400 million.
A contract with Cedar Bay Generating Company, L.P. (Cedar Bay), a
qualifying facility, provides FPL with the right to dispatch the Cedar Bay
facility "in any manner it deems appropriate." Despite this contractual
right, Cedar Bay initiated an action in 1997 in the circuit court
challenging, among other things, the manner in which the facility had been
dispatched by FPL. Although the court granted summary judgment to FPL with
regard to Cedar Bay's claim that FPL's dispatch decisions violated the
express terms of the contract, it permitted a jury to hear Cedar Bay's
claim that such dispatch decisions violated an implied duty of good faith
and fair dealing. The jury awarded Cedar Bay approximately $13 million on
this claim. Thereafter, the court entered a declaration that FPL was, in
the future, to dispatch the Cedar Bay facility in accordance with certain
specified parameters. FPL has appealed both the jury award and the court's
declaration. On October 30, 2000, the Florida First District Court of
Appeal affirmed the trial court's decision per curiam. FPL has filed a
motion for rehearing and rehearing en banc. If the jury award is
ultimately upheld, FPL expects to recover the amount through the capacity
clause.
In 1999, after FPL filed its notice of appeal in the Cedar Bay action, a
lender, on behalf of itself and a group of other Cedar Bay lenders, filed
an action against FPL in the circuit court alleging breach of contract,
breach of an implied duty of good faith and fair dealing, fraud, tortious
interference with contract and several other claims regarding the manner in
which FPL has dispatched the Cedar Bay facility. It seeks unspecified
damages and other relief. FPL has moved to dismiss all counts of this
complaint.
In 1999, the Attorney General of the United States, on behalf of the U.S.
Environmental Protection Agency (EPA) brought an action against Georgia
Power Company and other subsidiaries of The Southern Company for injunctive
relief and the assessment of civil penalties for certain violations of the
Clean Air Act. Among other things, the EPA alleges Georgia Power Company
constructed and is continuing to operate Scherer Unit No. 4, in which FPL
owns a 76% interest, without obtaining proper permitting, and without
complying with performance and technology standards as required by the
Clean Air Act. The suit seeks injunctive relief requiring the installation
of such technology and civil penalties of up to $25,000 per day for each
violation from an unspecified date after August 7, 1977 through January 30,
1997, and $27,500 per day for each violation thereafter. Georgia Power
Company has filed an answer to the complaint asserting that it has complied
with all requirements of the Clean Air Act, denying the plaintiff's
allegations of liability, denying that the plaintiff is entitled to any of
the relief that it seeks and raising various other defenses.
In June 2000, Southern California Edison Company (SCE) filed with the FERC a
Petition for Declaratory Order (petition) asking the FERC to apply a November
1999 federal circuit court of appeals' decision to all qualifying small power
production facilities, including two solar facilities operated by
partnerships indirectly owned in part by FPL Energy. The federal circuit
court of appeals' decision invalidated the FERC's so-called essential fixed
assets standard, which permitted secondary uses of fossil fuels by qualifying
small power production facilities beyond those expressly set forth in PURPA.
The petition requests that FERC declare that qualifying small power
production facilities may not continue to use fossil fuel under the essential
fixed assets standard and that they may be required to make refunds with
respect to past usage. The partnerships intend to file a Motion to Intervene
and Protest before the FERC, vigorously objecting to the position taken by
SCE in its petition. The partnerships have always operated the solar
facilities in accordance with orders issued by the FERC. Such orders were
neither challenged nor appealed at the time they were granted, and it is the
position of the partnerships that the orders remain in effect.
On September 29, 2000, Karen and Bruce Alexander filed suit against FPL
Group, FPL, FPL FiberNet, LLC (FPL FiberNet) FPL Group Capital and FPL
Investments, Inc. in the Circuit Court for Palm Beach County, Florida,
purportedly on behalf of all property owners in Florida whose property is
encumbered by defendants' easements and on whose property the defendants
have installed or intend to install fiber optic cable which defendants
lease, license or convey for non-electric transmission or distribution
purposes, or intend to do so. The lawsuit alleges that FPL's easements do
not permit the installation and use of fiber optic cable for general
communication purposes. The plaintiffs seek injunctive relief,
compensatory damages, interest and attorneys' fees.
FPL Group and FPL believe that they have meritorious defenses to all the
above pending litigation and are vigorously defending the suits.
Accordingly, the liabilities, if any, arising from the proceedings are not
anticipated to have a material adverse effect on their financial
statements.
7. Segment Information
FPL Group's reportable segments include FPL, a rate regulated utility, and
FPL Energy, a non-rate regulated energy generating subsidiary. Corporate and
Other represents other business activities, other segments that are not
separately reportable and eliminating entries. FPL Group's segment
information is as follows:
<TABLE><CAPTION>
Three Months Ended September 30,
2000 1999
FPL Corporate FPL Corporate
FPL Energy & Other Total FPL Energy & Other Total
(millions)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating revenues ..... $ 1,917 $ 149 $ 21 $ 2,087 $ 1,769 $ 103 $ 20 $ 1,892
Net income ............. $ 275 $ 32 $ 7 $ 314 $ 264 $ 27 $ - $ 291
Nine Months Ended September 30,
2000 1999
FPL Corporate FPL Corporate
FPL Energy & Other Total FPL Energy(a) & Other(a) Total
(millions)
Operating revenues ..... $ 4,788 $ 370 $ 67 $ 5,225 $ 4,638 $ 238 $ 42 $ 4,918
Net income (loss) ...... $ 553 $ 74 $ 12 $ 639 $ 531 $ (50)(a) $ 96(b) $ 577
September 30, 2000 December 31, 1999
FPL Corporate FPL Corporate
FPL(c) Energy & Other(c) Total FPL Energy & Other Total
(millions)
Total assets ........... $11,839 $2,578 $520 $14,937 $10,608 $2,212 $621 $13,441
_______________
(a) Includes effect of $104 million after-tax impairment loss. See Management's Discussion and Analysis of Financial
Condition and Results of Operations - Results of Operations - FPL Energy.
(b) Includes $96 million after-tax gain on the sale of an investment in Adelphia Communications Corporation (Adelphia)
common stock. See Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of
Operations - Corporate and Other.
(c) Includes effect of $100 million net asset transfer in January 2000 from FPL to FPL FiberNet.
</TABLE>
8. Summarized Financial Information of FPL Group Capital
FPL Group Capital, a wholly-owned subsidiary of FPL Group, provides funding
for and holds ownership interest in FPL Group's operating subsidiaries
other than FPL. FPL Group Capital's debentures are fully and
unconditionally guaranteed by FPL Group and included in FPL Group's
condensed consolidated balance sheets. Summarized financial information of
FPL Group Capital is as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
(millions) (millions)
Operating revenues .... $170 $123 $437 $280
Operating expenses .... $150 $112 $364
$432(a)
Net income ............ $ 43 $ 33 $102 $
63(a)(b)
September 30, December 31,
2000 1999
(millions)
Current assets ......... $ 810 $ 640
Noncurrent assets ...... $3,092 $2,627
Current liabilities .... $ 807 $ 414
Noncurrent liabilities.. $1,863 $1,840
_______________
(a) Includes effect of $104 million after-tax impairment loss. See
Management's Discussion and Analysis of Financial Condition and Results
of Operations - Results of Operations - FPL Energy.
(b) Includes $96 million after-tax gain on the sale of an investment in
Adelphia common stock. See Management's Discussion and Analysis of
Financial Condition and Results of Operations - Results of Operations -
Corporate and Other.
Management has not presented separate financial statements and other
disclosures concerning FPL Group Capital because management has determined
that such information is not material to holders of the FPL Group Capital
debentures.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This discussion should be read in conjunction with the Notes to Condensed
Consolidated Financial Statements contained herein and Management's
Discussion and Analysis of Financial Condition and Results of Operations
appearing in the 1999 Form 10-K for FPL Group and FPL. The results of
operations for an interim period may not give a true indication of results
for the year. In the following discussion, all comparisons are with the
corresponding items in the prior year.
RESULTS OF OPERATIONS
FPL Group's net income for the three and nine months ended September 30,
2000 improved over the same periods last year, excluding the effects of
nonrecurring transactions in the first and second quarters of 1999. The
improvement is primarily the result of increased earnings at both FPL and
FPL Energy.
FPL - FPL's net income for the three months ended September 30, 2000
improved over the same period last year mainly due to higher energy sales
and lower depreciation expense, partially offset by higher interest charges
and the effect of the rate reduction agreement commencing April 15, 1999
that, among other things, reduced FPL's retail base rates and provided for
refunds to customers if certain revenue thresholds are met. FPL's revenues
from retail base operations for the three months ended September 30, 2000
were $989 million, up from $978 million in 1999. This increase reflects a
2.5% increase in the number of customer accounts and a slight increase in
usage per retail customer, partially offset by an increase in the revenue
refund accrual associated with the rate reduction agreement. During the
third quarter of 2000, FPL accrued approximately $22 million associated
with refunds to retail customers, compared with $12 million in the same
quarter last year. The decline in depreciation expense is due to lower
recorded amounts of special depreciation as provided by the rate agreement.
Higher average outstanding short-term debt balances contributed to the
increase in interest charges for the three months ended September 30, 2000.
Net income increased for the nine months ended September 30, 2000 due to
higher energy sales, lower O&M expenses and lower depreciation expense,
partly offset by the effects of the rate reduction agreement. FPL's
revenues from retail base operations for the nine months ended September
30, 2000 were $2,569 million compared to $2,577 million in 1999. Increased
usage per retail customer of 2.2% and a 2.5% increase in the number of
customer accounts was more than offset by the reduction in rates and the
increase in the revenue refund accrual. During the nine months ended
September 30, 2000, FPL accrued approximately $59 million relating to
refunds to retail customers, compared to $12 million in 1999. Continued
cost control efforts and timing of expenditures contributed to the decline
in O&M for the nine month period. Special depreciation expense recorded
for the nine months ended September 30, 2000 and 1999 was $70 million and
$103 million, respectively, including $63 million recorded in 1999 under a
previous program that ended when the rate reduction agreement became
effective.
FPL Energy - FPL Energy's net income for the three and nine months ended
September 30, 2000 benefitted from the expansion of its generating
portfolio. For the three months ended September 30, 2000, net income
increased as a result of the start-up of a new gas-fired plant in Texas and
the purchase of an existing wind-powered plant in Minnesota. The increase
was partly offset by milder weather in the Northeast during the third
quarter of 2000. FPL Energy's net income increased for the nine months
ended September 30, 2000 primarily as a result of increased revenues
generated by the Maine assets due to warmer weather and higher prices in
the Northeast during May 2000. The capacity additions discussed above also
contributed to the improvement for the year-to-date 2000 period. FPL
Energy's net income for the nine months ended September 30, 1999, includes
the effect of a $176 million ($104 million after-tax) impairment loss
recorded in the second quarter of 1999.
Corporate and Other - Net income for the nine months ended September 30,
1999 reflects a $149 million ($96 million after-tax) gain recorded by FPL
Group Capital on the sale of an investment in Adelphia common stock in the
first quarter of 1999.
For information concerning the proposed merger of FPL Group and Entergy,
see Note 1.
LIQUIDITY AND CAPITAL RESOURCES
For financing activity during the nine months ended September 30, 2000, see
Note 4 - Long-Term Debt. In addition, during the nine months ended
September 30, 2000, FPL Group increased its outstanding commercial paper by
$597 million ($241 million for FPL), and contributed $400 million to FPL.
The increase in FPL's commercial paper and the capital contribution from
FPL Group were used primarily to fund FPL's unrecovered fuel expenses (see
Note 3), and its capital expansion program. The balance of FPL Group's
commercial paper increase was used primarily to repurchase shares and fund
capital expansion at FPL Energy and FPL FiberNet. During the three and
nine months ended September 30, 2000, FPL Group repurchased 862,000 and
1,612,400 shares of common stock, respectively. See Note 1 and Note 4 -
FPL Group Common Stock.
For information concerning capital commitments, see Note 6 - Commitments.
NEW ACCOUNTING RULE
In June 2000, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 138 (FAS 138), "Accounting
for Certain Derivative Instruments and Certain Hedging Activities," which
amends FAS 133, "Accounting for Derivative Instruments and Hedging
Activities." FAS 138 addresses certain FAS 133 implementation issues,
including the application and expansion of provisions that allow normal
purchases and normal sales to be excluded from the scope of FAS 133/138.
FPL and FPL Energy have various commodity contracts which are used to
manage price risk. After reviewing these contracts FPL Group believes,
based on current interpretations of FAS 133, that some of these contracts
will be subject to fair value accounting under FAS 133. For FPL, the
initial adjustment to fair value and any subsequent changes in fair values
for these contracts will be deferred in a regulatory asset or liability
until the contract is settled. For FPL Energy, hedge accounting is
expected to be available for some of the contracts and FPL Group is in the
process of documenting its hedging strategies and assessing effectiveness
in preparation for implementation of the new rules.
FPL Group expects to report a cumulative effect of a change in accounting
principle in the first quarter of 2001 as a result of adopting FAS 133/138.
The effect of implementation will be to adjust other comprehensive income
(in stockholders' equity) for the effective portion of cash flow hedges and
to adjust net income for the remainder. FPL Group has not estimated the
impact on earnings and other comprehensive income that will result from the
adoption of FAS 133/138. The amount of the cumulative effect could be
significantly influenced by a number of factors, including resolution by
the FASB's Derivatives Implementation Group of a number of issues affecting
the power industry.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Reference is made to Item 3. Legal Proceedings in the 1999 Form 10-K for
FPL Group and FPL, and Item 1. Legal Proceedings in the June 30, 2000 Form
10-Q for FPL Group and FPL.
On September 5, 2000, the bankruptcy court approved the settlement of a
contract dispute between FPL and two qualifying facilities. The settlement
was approved by the FPSC on October 17, 2000. On November 9, 2000, an
individual filed a petition with the FPSC protesting the FPSC's approval of
the settlement and requesting a hearing. The petition will prevent the
FPSC's approval order from becoming final until the issues raised by it are
resolved. FPL expects to recover the cost of the settlement through the
fuel and capacity clauses over a five-year period beginning January 1,
2002. FPL also expects that from the date the settlement payment is made
until December 31, 2001, FPL will not receive a return on the unrecovered
amount through the fuel and capacity clauses, but instead, the settlement
amount will be included as a rate base regulatory asset over that period.
FPL estimates the net present value of the savings to its customers from the
settlement versus the payments that would have been due under the power
purchase agreements to be in excess of $400 million.
On October 30, 2000, the Florida First District Court of Appeal affirmed
the trial court's decision per curiam on the Cedar Bay claim. FPL has
filed a motion for rehearing and rehearing en banc.
On September 29, 2000, Karen and Bruce Alexander filed suit against FPL
Group, FPL, FPL FiberNet, FPL Group Capital and FPL Investments, Inc. in
the Circuit Court for Palm Beach County, Florida, purportedly on behalf of
all property owners in Florida whose property is encumbered by defendants'
easements and on whose property the defendants have installed or intend to
install fiber optic cable which defendants lease, license or convey for
non-electric transmission or distribution purposes, or intend to do so.
The lawsuit alleges that FPL's easements do not permit the installation and
use of fiber optic cable for general communication purposes. The
plaintiffs seek injunctive relief, compensatory damages, interest and
attorneys' fees.
Item 5. Other Information
Reference is made to Item 1. Business - FPL Operations - Competition in the
1999 Form 10-K for FPL Group and FPL.
On September 18, 2000, FERC approved the settlement agreement between FPL
and its wholesale customers that provided for lower rates to wholesale
customers through the adoption of new fixed rates, rather than formula
rates. The refund amounts provided for in the settlement, which were
previously accrued, have been paid.
On October 16, 2000, FPL, together with Florida Power Corporation and Tampa
Electric Company, filed a joint proposal in response to the FERC's final
order requiring all investor-owned utilities to submit plans to create RTOs
that would become operational by December 15, 2001. The joint filing
proposes a fully independent for-profit transmission company that will be
responsible for the transmission lines that carry electricity from power
plants primarily within the state to substations in peninsular Florida.
Under the proposed form of RTO, FPL would contribute its transmission
assets to an independent transmission company, GridFlorida, that would own
and operate the system. In return, FPL would receive a non-voting ownership
interest in GridFlorida and account for its interest using the equity
method. A separate corporation will be formed that will own and manage
GridFlorida.
In May 2000, the Governor of Florida signed an executive order creating the
Energy 2020 Study Commission to propose an energy plan and strategy for
Florida. The order requires that recommendations be made to the
legislature and Governor by December 1, 2001. The members of the
Commission were appointed in July 2000, and they held their first meeting
in September 2000. The first meeting resulted in a proposal to split the
energy study between wholesale and retail, with the Commission's
recommendations on wholesale restructuring to be provided by January 2001.
Reference is made to Item 1. Business - FPL Operations - Employees in the
1999 Form 10-K for FPL Group and FPL.
The International Brotherhood of Electrical Workers voted to extend the
collective bargaining agreement with FPL to November 2001. Meanwhile, the
voting process for a final contract proposal of the successor agreement is
expected to be complete by the end of 2000.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
<TABLE><CAPTION>
Exhibit FPL
Number Description Group FPL
<S> <C> <C> <C>
12(a) Computation of Ratio of Earnings to Fixed Charges x
12(b) Computation of Ratios x
27 Financial Data Schedule x x
</TABLE>
(b) Reports on Form 8-K
A Current Report on Form 8-K was filed with the Securities Exchange
Commission on July 31, 2000 by FPL Group reporting one event under
Item 5. Other Events.
A Current Report on Form 8-K was filed with the Securities and
Exchange Commission on August 3, 2000 by FPL Group and FPL reporting
one event under Item 5. Other Events.
A Current Report on Form 8-K was filed with the Securities and
Exchange Commission on August 4, 2000 by FPL reporting one event under
Item 5. Other Events.
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: November 13, 2000
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
(Principal Accounting Officer of the Registrants)
