|
|
|
|
|
|
|
|
|
|
Previous: COREFUNDS INC, NSAR-A, 1998-02-27 |
Next: LEXINGTON STRATEGIC SILVER FUND INC, NSAR-A, 1998-02-27 |
<PAGE>
File No. 69-302
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
Statement by Holding Company Claiming
Exemption under Rule U-3A-2 from the
Provisions of the Public Utility Holding
Company Act of 1935
To be Filed Annually Prior to March 1
FPL GROUP, INC.
hereby files with the Securities and Exchange Commission, pursuant to
Rule 2, its statement claiming exemption as a holding company from
the provisions of the Public Utility Holding Company Act of 1935, and
submits the following information:
Page 1 of 63
<PAGE>
1. Name, State of organization, location and nature of
business of claimant and every subsidiary thereof,
other than any exempt wholesale generator ("EWG") or
foreign utility company in which claimant directly or
indirectly holds an interest.
FPL Group, Inc. ("Claimant") is a Florida corporation,
organized in 1984, with its principal executive
offices at 700 Universe Boulevard, Juno Beach, Florida
33408. Claimant's business is the holding of all the
outstanding capital stock of its subsidiaries.
The name, jurisdiction of incorporation, location and
nature of business of each subsidiary of Claimant, as
of December 31, 1997 is set forth in Appendix 1
hereto. Additionally, in January 1998 FPL Energy,
Inc. was formed to oversee non-regulated investments
in domestic and international energy markets. FPL
Energy, Inc., a Florida corporation located in North
Palm Beach, Florida, is a subsidiary of FPL Group
Capital Inc and owns the stock of ESI Energy, Inc. and
FPL Group International, Inc.
2. A brief discussion of the properties of claimant and
each of its subsidiary public utility companies used
for the generation, transmission and distribution of
electric energy for sale, or for the production,
transmission and distribution of natural or
manufactured gas, indicating the location of principal
generating plants, transmission lines, producing
fields, gas manufacturing plants, and electric and gas
distribution facilities, including all such properties
which are outside the state in which claimant and its
subsidiaries are organized and all transmission or
pipelines which deliver or receive electric energy or
gas at the borders of such state.
Claimant's only subsidiary public utility company is
Florida Power & Light Company ("FPL"), a Florida
corporation, which is an electric utility company. A
description of the properties of FPL used for the
generation, transmission, or distribution of electric
energy for sale is set forth in Appendix 2 hereto.
All of these properties are located within the State
of Florida except for Scherer Unit No. 4 which is
located in Georgia.
3. The following information for the last calendar year
with respect to Claimant and each of its subsidiary
public utility companies:
(a) Number of kwh of electric energy sold (at
retail or wholesale) or Mcf. of natural or
manufactured gas distributed at retail.
Claimant - None
FPL - 82,733,897,170 kwh
(b) Number of kwh of electric energy and Mcf. of
natural or manufactured gas distributed at
retail outside the state in which each such
company is organized.
Claimant - None
FPL - None
(c) Number of kwh of electric energy and Mcf. of
natural or manufactured gas sold at wholesale
outside the state in which each such company
is organized, or at the state line.
Claimant - None
FPL - 65,470,000 kwh
(d) Number of kwh of electric energy and Mcf. of
natural or manufactured gas purchased outside
the state in which each such company is
organized, or at the state line.
Claimant - None
FPL - 5,151,764,000 kwh
4. The following information for the reporting period
with respect to claimant and each interest it holds
directly or indirectly in an EWG or a foreign utility
company, stating monetary amounts in United States
dollars:
(a) Name, location, business address and
description of the facilities used by the EWG
or foreign utility company for the generation,
transmission and distribution of electric
energy for sale or for the distribution at
retail of natural or manufactured gas.
Claimant has the following interests in EWG's:
- ESI Doswell, Inc. ("Doswell"), the
business address of which is 10098 Old
Ridge Road, Ashland, VA 23005. The
facility is a 665 megawatt gas-fired
combined cycle plant located in Hanover
County, Virginia, which sells 100% of its
power to Virginia Electric and Power
Company.
- InterAmerican Energy Leasing Company
("InterAmerican"), the business address of
which is 1000 Wilson Boulevard, Suite 902,
Arlington, Virginia 22209. The facility
is a 100 megawatt gas-fired combined cycle
plant located in Cartagena, Colombia,
which is leased by InterAmerican to
Promotora de Energia Electrica de
Cartagena, S.A.
- Termovalle S.C.A., E.S.P. ("Termovalle"),
the business address of which is 1000
Wilson Boulevard, Suite 902, Arlington,
Virginia 22209. The facility is a 200
megawatt gas-fired combined cycle plant
located in Cali, Colombia, which, when
completed, will sell 160 megawatts to
Empresa de Energia del Pacifico S.A. EPSA
E.S.P., some additional sales will be made
to industrial manufacturers in the Cali
area and the remainder, if any, will be
sold through the Colombian Bolsa de
Energia (energy exchange).
(b) Name of each system company that holds an
interest in such EWG or foreign utility
company; and description of the interest held.
At December 31, 1997, ESI Energy, Inc. ("ESI")
owns Doswell. ESI is a wholly-owned
subsidiary of FPL Group Capital Inc, a
wholly-owned subsidiary of Claimant.
At December 31, 1997, FPL Mamonal, Inc. and
FPL International Investment Company, each,
indirectly, owned a limited partnership
interest in InterAmerican. These interests in
the aggregate will average approximately 28%
over the life of the partnership. FPL
Mamonal, Inc. and FPL International Investment
Company are wholly-owned subsidiaries of FPL
Group International, Inc., which is a
wholly-owned subsidiary of FPL Group Capital
Inc, a wholly-owned subsidiary of Claimant.
At December 31, 1997, FPL Termovalle, Inc. and
FPL International Holdings, Inc., each,
indirectly, owned a limited partnership
interest in Termovalle. These interests in
the aggregate will average approximately 36%
over the life of the partnership. FPL
Termovalle, Inc. and FPL International
Holdings, Inc. are wholly-owned subsidiaries
of FPL Group International, Inc., which is a
wholly-owned subsidiary of FPL Group Capital
Inc, a wholly-owned subsidiary of Claimant.
(c) Type and amount of capital invested, directly
or indirectly, by the holding company claiming
exemption; any direct or indirect guarantee of
the security of the EWG or foreign utility
company by the holding company claiming
exemption; and any debt or other financial
obligation for which there is recourse,
directly or indirectly, to the holding company
claiming exemption or another system company,
other than the EWG or foreign utility company.
Doswell's equity balance at December 31, 1997
was $75.7 million. FPL Group Capital has
outstanding letters of credit in the amount of
$10 million guaranteeing Doswell's debt
service payments.
FPL Mamonal, Inc.'s and FPL International
Investment Company's combined capital
contribution in the EWG at December 31, 1997
consists of $14.9 million. Claimant and its
other system companies do not directly or
indirectly guarantee any security of
InterAmerican, nor is there any recourse to
Claimant or another system company for any
financial obligations of InterAmerican.
FPL Thermovalle, Inc.'s and FPL International
Holdings, Inc. combined capital contribution
in the EWG at December 31, 1997 consists of
$5.2 million. The project is currently under
construction and development. Claimant and
its other system companies, except for $16.8
million of project contribution guarantees,
do not directly or indirectly guarantee any
security of Termovalle, nor is there any
recourse to Claimant or another system company
for any financial obligations of Termovalle.
(d) Capitalization and earnings of the EWG or
foreign utility company during the reporting
period.
Doswell
Total Equity = $75,680,000
Total Debt Obligations = $369,783,000
Net Income = $298,000
Claimant's Equity in Net Income = $298,000
InterAmerican
Total Partner's Capital = $15,764,977
Total Debt Obligations = $43,469,416
Net Income = $5,832,491
Claimant's Equity in Net Income = $774,924
Termovalle
Total Partner's Capital = $1,825,135
Total Debt Obligations = $116,084,862
Net Income = $0
Claimant's Equity in Net Income (Loss) = $(15,260)
(e) Identify any service, sales or construction
contract(s) between the EWG or foreign utility
company and a system company, and describe the
services to be rendered or goods sold and fees
or revenues under such agreement(s).
None<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of the Claimant and
its subsidiary companies for the last calendar year, together with a
consolidating balance sheet of Claimant and its subsidiary companies
as of the close of such calendar year.
Company Pages
FPL Group, Inc. and Subsidiaries 6-7
Florida Power & Light Company and Subsidiaries 8-9
FPL Group Capital Inc and Subsidiaries 10-13
Alandco Inc. and Subsidiaries 14-15
ESI Energy, Inc. and Subsidiaries 16-31
FPL Group International, Inc. 32-39
Palms Insurance Company, Limited and Subsidiary 40-41
Telesat Cablevision, Inc. and Subsidiaries 42-45
Turner Foods Corporation and Subsidiaries 46-49
HJT Holdings, Inc., LCR Holdings, Inc. and Subsidiaries 50-51
Notes to Consolidating Financial Statements 52-53<PAGE>
<TABLE>
FPL GROUP, INC. AND SUBSIDIARIES 6
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Florida
FPL Power & Light FPL Group CAS Adjusting
Group, Company Capital Inc Investments, & Elim. FPL Group, Inc.
ASSETS Inc. Consolidated Consolidated Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $16,819,384 $604,794 $0 $5,921 $17,430,099
Nuclear fuel under capital lease 0 186,301 0 0 0 186,301
Construction work in progress 0 131,087 72,994 0 0 204,081
Less accumulated depr. & amort. 0 (8,355,701) (110,640) 0 (395) (8,466,736)
Total property, plant and eqpt. - net 0 8,781,071 567,148 0 5,526 9,353,745
CURRENT ASSETS
Cash and cash equivalents 8,402 2,915 43,124 15 0 54,456
Customer receivables - net 0 471,180 29,601 0 0 500,781
Materials, supplies & fossil fuel inventory 0 241,853 60,604 0 0 302,457
Deferred clause expenses 0 121,927 0 0 0 121,927
Other 81,669 104,411 22,459 122,270 (209,056) 121,753
Total current assets 90,071 942,286 155,788 122,285 (209,056) 1,101,374
OTHER ASSETS:
Special use funds of FPL 0 1,006,606 0 0 0 1,006,606
Other investments 5,181,307 0 615,181 0 (5,514,986) 281,502
Other 65,167 442,363 264,845 0 (66,570) 705,805
Total other assets 5,246,474 1,448,969 880,026 0 (5,581,556) 1,993,913
TOTAL ASSETS $5,336,545 $11,172,326 $1,602,962 $122,285 ($5,785,086) $12,449,032
CAPITALIZATION
Common shareholders' equity $4,844,668 $4,813,995 $352,130 $12,380 ($5,178,504) $4,844,669
Pref. stock without sinking fund requirements 0 226,250 0 0 0 226,250
Long-term debt 0 2,419,709 529,741 0 0 2,949,450
Total capitalization 4,844,668 7,459,954 881,871 12,380 (5,178,504) 8,020,369
CURRENT LIABILITIES
Short-term debt 0 39,600 94,283 0 0 133,883
Cur. matur. of long-term debt & pref. stock 0 180,300 18,000 0 0 198,300
Accounts payable 0 343,513 23,839 0 0 367,352
Customers' deposits 0 279,041 69 0 0 279,110
Accrued interest and taxes (4,800) 180,166 5,569 8,768 (9,248) 180,455
Other 477,182 289,428 110,616 0 (536,943) 340,283
Total current liabilities 472,382 1,312,048 252,376 8,768 (546,191) 1,499,383
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 1,069,898 362,715 101,137 (60,391) 1,473,359
Deferred regulatory credit - income taxes 0 165,851 0 0 0 165,851
Unamortized investment tax credits 0 228,788 0 0 0 228,788
Storm and property insurance reserve 0 252,444 0 0 0 252,444
Other 19,495 683,343 106,000 0 0 808,838
Total other liabilities & deferred credits 19,495 2,400,324 468,715 101,137 (60,391) 2,929,280
TOTAL CAPITALIZATION AND LIABILITIES $5,336,545 $11,172,326 $1,602,962 $122,285 ($5,785,086) $12,449,032
</TABLE>
<PAGE>
<TABLE>
FPL GROUP, INC. AND SUBSIDIARIES 7
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Florida
FPL Power & Light FPL Group CAS Adjusting FPL Group,
Group, Company Capital Inc Investments, & Elim. Inc.
INCOME STATEMENT Inc. Consolidated Consolidated Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $6,132,047 $236,966 $0 $0 $6,369,013
OPERATING EXPENSES
Fuel, purchased power & interchange 0 2,195,804 59,195 0 0 2,254,999
Other operations and maintenance (105) 1,132,690 97,977 333 0 1,230,895
Depreciation & amortization 0 1,033,766 27,373 0 0 1,061,139
Taxes other than income taxes 3 592,247 1,801 0 0 594,051
Total operating expenses (102) 4,954,507 186,346 333 0 5,141,084
OPERATING INCOME 102 1,177,540 50,620 (333) 0 1,227,929
OTHER INCOME (DEDUCTIONS):
Interest charges (33,205) (226,732) (64,795) 0 33,204 (291,528)
Preferred stock dividends - FPL 0 (18,760) 0 0 0 (18,760)
Other-net 638,006 (3,634) 37,925 701 (668,457) 4,541
Total other deductions - net 604,801 (249,126) (26,870) 701 (635,253) (305,747)
INCOME BEFORE INCOME TAXES 604,903 928,414 23,750 368 (635,253) 922,182
INCOME TAXES (12,599) 320,672 (3,522) 129 0 304,680
NET INCOME (LOSS) 617,502 607,742 27,272 239 (635,253) 617,502
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 1,517,719 870,113 (905,712) (8,985) 44,584 1,517,719
DEDUCT:
Dividends 332,065 600,671 0 0 (600,671) 332,065
Other 2,088 2,195 (31) 0 (2,164) 2,088
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $1,801,068 $874,989 ($878,409) ($8,746) $12,166 $1,801,068
</TABLE>
<PAGE>
<TABLE>
FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES 8
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Florida Land FPL Florida Power
Power Resource FPL Energy KPB Adjusting & Light
& Light Investment Enersys Services, Financial & Elim. Company
ASSETS Company Company Inc. Inc. Corp. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and
other property $16,632,772 $191,609 $0 $924 $0 ($5,921) $16,819,384
Nuclear fuel under capital lease 186,301 0 0 0 0 0 186,301
Construction work in progress 131,072 15 0 0 0 0 131,087
Less accumulated depr. & amort. (8,311,297) (44,404) 0 (395) 0 395 (8,355,701)
Total property, plant and
eqpt. - net 8,638,848 147,220 0 529 0 (5,526) 8,781,071
CURRENT ASSETS
Cash and cash equivalents 2,659 0 0 0 256 0 2,915
Customer receivables - net 153,070 0 0 1,423 316,687 0 471,180
Materials, supplies & fossil
fuel inventory 210,325 0 0 0 31,528 0 241,853
Deferred clause expenses 121,927 0 0 0 0 0 121,927
Other 451,122 52,739 0 3,429 60,824 (463,703) 104,411
Total current assets 939,103 52,739 0 4,852 409,295 (463,703) 942,286
OTHER ASSETS:
Special use funds of FPL 849,743 0 0 0 156,863 0 1,006,606
Other investments 339,670 0 727 0 866 (341,263) 0
Other 433,746 0 0 514 0 8,103 442,363
Total other assets 1,623,159 0 727 514 157,729 (333,160) 1,448,969
TOTAL ASSETS $11,201,110 $199,959 $727 $5,895 $567,024 ($802,389) $11,172,326
CAPITALIZATION
Common shareholders' equity $4,813,996 $181,547 $727 $727 $155,684 ($338,686) $4,813,995
Pref. stock without sinking
fund requirements 226,250 0 0 0 0 0 226,250
Long-term debt 2,419,709 0 0 0 0 0 2,419,709
Total capitalization 7,459,955 181,547 727 727 155,684 (338,686) 7,459,954
CURRENT LIABILITIES
Short-term debt 39,600 0 0 0 410,000 (410,000) 39,600
Cur. matur. of long-term debt
& pref. stock 180,300 0 0 0 0 0 180,300
Accounts payable 342,833 0 0 680 0 0 343,513
Customers' deposits 279,041 0 0 0 0 0 279,041
Accrued interest and taxes 180,463 (8) 0 (256) (33) 0 180,166
Other 338,248 0 0 4,687 196 (53,703) 289,428
Total current liabilities 1,360,485 (8) 0 5,111 410,163 (463,703) 1,312,048
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 1,051,994 17,942 0 (38) 0 0 1,069,898
Deferred regulatory credit -
income taxes 165,851 0 0 0 0 0 165,851
Unamortized investment tax credits 228,310 478 0 0 0 0 228,788
Storm and property insurance reserve 251,267 0 0 0 1,177 0 252,444
Other 683,248 0 0 95 0 0 683,343
Total other liabilities &
deferred credits 2,380,670 18,420 0 57 1,177 0 2,400,324
TOTAL CAPITALIZATION AND LIABILITIES $11,201,110 $199,959 $727 $5,895 $567,024 ($802,389) $11,172,326
</TABLE>
<PAGE>
<TABLE>
FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES 9
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1996
Thousands of Dollars
<CAPTION> Florida Land FPL Florida Power
Power Resource FPL Energy KPB Adjusting & Light
& Light Investment Enersys Services, Financial & Elim. Company
INCOME STATEMENT Company Company Inc. Inc. Corp. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $6,132,047 $6,422 $0 $0 $0 ($6,422) $6,132,047
OPERATING EXPENSES
Fuel, purchased power & interchange 2,195,804 0 0 0 0 0 2,195,804
Other operations and maintenance 1,139,112 0 0 0 0 (6,422) 1,132,690
Depreciation & amortization 1,030,175 3,591 0 0 0 0 1,033,766
Taxes other than income taxes 589,289 2,961 0 (3) 0 0 592,247
Total operating expenses 4,954,380 6,552 0 (3) 0 (6,422) 4,954,507
OPERATING INCOME 1,177,667 (130) 0 3 0 0 1,177,540
OTHER INCOME (DEDUCTIONS):
Interest charges (226,732) 0 0 0 (174) 174 (226,732)
Preferred stock dividends - FPL (18,760) 0 0 0 0 0 (18,760)
Other-net (3,309) 0 (279) (480) 6,604 (6,170) (3,634)
Total other deductions - net (248,801) 0 (279) (480) 6,430 (5,996) (249,126)
INCOME BEFORE INCOME TAXES 928,866 (130) (279) (477) 6,430 (5,996) 928,414
INCOME TAXES 321,124 (130) 0 (198) (124) 0 320,672
NET INCOME (LOSS) 607,742 0 (279) (279) 6,554 (5,996) 607,742
RETAINED EARNINGS (DEFICIT) AT
BEG. OF YEAR 870,113 0 (2,133) (1,969) 9,221 (5,119) 870,113
DEDUCT:
Dividends 600,671 0 0 0 0 0 600,671
Other 2,195 0 0 0 0 0 2,195
RETAINED EARNINGS (DEFICIT) AT
END OF YEAR $874,989 $0 ($2,412) ($2,248) $15,775 ($11,115) $874,989
</TABLE>
<PAGE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 10
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> FPL FPL Group Palms Telesat
Group ESI Energy, International Insurance Cablevision,
Capital Alandco Inc. Inc. Inc. Company, Ltd. Inc.
ASSETS Inc Consolidated Consolidated Consolidated Consolidated Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $2,524 $412,822 $8,911 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 72,994 0 0 0
Less accumulated depr. & amort. 0 0 (67,646) (318) 0 0
Total property, plant and eqpt. - net 0 2,524 418,170 8,593 0 0
CURRENT ASSETS
Cash and cash equivalents 15,379 (52) 24,109 58 452 31
Customer receivables - net 0 0 27,184 453 0 0
Materials, supplies & fossil fuel inventory 0 0 38,395 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 91 3,204 24,330 1,829 4,391 35,667
Total current assets 15,470 3,152 114,018 2,340 4,843 35,698
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 791,588 1,366 230,378 57,334 17,716 0
Other 3,597 1,080 258,627 2,122 1,468 0
Total other assets 795,185 2,446 489,005 59,456 19,184 0
TOTAL ASSETS $810,655 $8,122 $1,021,193 $70,389 $24,027 $35,698
CAPITALIZATION
Common shareholders' equity $352,129 $7,303 $243,607 $68,382 $6,405 ($16,432)
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 128,241 0 401,500 0 0 0
Total capitalization 480,370 7,303 645,107 68,382 6,405 (16,432)
CURRENT LIABILITIES
Short-term debt 58,000 0 36,283 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 18,000 0 0 0
Accounts payable 50 768 17,645 2,995 14 16
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 1,844 0 2,876 0 0 0
Other 168,200 22 24,659 1,216 1,596 380
Total current liabilities 228,094 790 99,463 4,211 1,610 396
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 28,067 0 255,237 (2,315) 0 51,202
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 74,124 29 21,386 111 16,012 532
Total other liabilities & deferred credits 102,191 29 276,623 (2,204) 16,012 51,734
TOTAL CAPITALIZATION AND LIABILITIES $810,655 $8,122 $1,021,193 $70,389 $24,027 $35,698
</TABLE>
<PAGE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 11
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> FPL FPL Group Palms Telesat
Group ESI Energy, International Insurance Cablevision,
Capital Alandco Inc. Inc. Inc. Company, Ltd. Inc.
INCOME STATEMENT Inc Consolidated Consolidated Consolidated Consolidated Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $16 $187,770 $1,115 $12,019 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 59,195 0 0 0
Other operations and maintenance 5,990 536 39,647 8,620 11,228 90
Depreciation & amortization 185 5 21,465 403 0 0
Taxes other than income taxes 4 102 1,678 17 0 0
Total operating expenses 6,179 643 121,985 9,040 11,228 90
OPERATING INCOME (6,179) (627) 65,785 (7,925) 791 (90)
OTHER INCOME (DEDUCTIONS):
Interest charges (16,059) 0 (49,152) 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 25,537 1,618 17,280 (4,420) 0 24
Total other deductions - net 9,478 1,618 (31,872) (4,420) 0 24
INCOME BEFORE INCOME TAXES 3,299 991 33,913 (12,345) 791 (66)
INCOME TAXES (23,973) 322 12,460 (4,434) 277 (66)
NET INCOME (LOSS) 27,272 669 21,453 (7,911) 514 0
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (905,712) (6,799) 0 (4,501) 3,675 (30,663)
DEDUCT:
Dividends 0 0 0 0 0 0
Other (31) 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($878,409) ($6,130) $21,453 ($12,412) $4,189 ($30,663)
</TABLE>
<PAGE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 12
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Turner
Foods FPL HJT & LCR Adjusting FPL Group
Corporation Holdings Holdings & Elim. Capital Inc
ASSETS Consolidated Inc Consolidated Entries Consolidated
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $186,459 $272 $0 ($6,194) $604,794
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 0 0 72,994
Less accumulated depr. & amort. (42,404) (272) 0 0 (110,640)
Total property, plant and eqpt. - net 144,055 0 0 (6,194) 567,148
CURRENT ASSETS
Cash and cash equivalents 2,031 0 1,116 0 43,124
Customer receivables - net 1,964 0 0 0 29,601
Materials, supplies & fossil fuel inventory 22,209 0 0 0 60,604
Deferred clause expenses 0 0 0 0 0
Other 3,573 4,203 26,168 (80,997) 22,459
Total current assets 29,777 4,203 27,284 (80,997) 155,788
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 184 0 339,059 (822,444) 615,181
Other 142 0 0 (2,191) 264,845
Total other assets 326 0 339,059 (824,635) 880,026
TOTAL ASSETS $174,158 $4,203 $366,343 ($911,826) $1,602,962
CAPITALIZATION
Common shareholders' equity $138,604 $4,277 $366,119 ($818,264) $352,130
Pref. stock without sinking fund requirements 0 0 0 0 0
Long-term debt 0 0 0 0 529,741
Total capitalization 138,604 4,277 366,119 (818,264) 881,871
CURRENT LIABILITIES
Short-term debt 0 0 0 0 94,283
Cur. matur. of long-term debt & pref. stock 0 0 0 0 18,000
Accounts payable 2,351 0 0 0 23,839
Customers' deposits 69 0 0 0 69
Accrued interest and taxes 751 0 192 (94) 5,569
Other 0 0 32 (85,489) 110,616
Total current liabilities 3,171 0 224 (85,583) 252,376
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 32,383 (74) 0 (1,785) 362,715
Deferred regulatory credit - income taxes 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0
Other 0 0 0 (6,194) 106,000
Total other liabilities & deferred credits 32,383 (74) 0 (7,979) 468,715
TOTAL CAPITALIZATION AND LIABILITIES $174,158 $4,203 $366,343 ($911,826) $1,602,962
</TABLE>
<PAGE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 13
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Turner Foods FPL HJT & LCR Adjusting FPL Group
Corporation Holdings Holdings & Elim. Capital Inc
INCOME STATEMENT Consolidated Inc Consolidated Entries Consolidated
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $36,046 $0 $0 $0 $236,966
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 59,195
Other operations and maintenance 31,851 0 15 0 97,977
Depreciation & amortization 5,315 0 0 0 27,373
Taxes other than income taxes 0 0 0 0 1,801
Total operating expenses 37,166 0 15 0 186,346
OPERATING INCOME (1,120) 0 (15) 0 50,620
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 416 (64,795)
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 1,221 4,100 33,738 (41,173) 37,925
Total other deductions - net 1,221 4,100 33,738 (40,757) (26,870)
INCOME BEFORE INCOME TAXES 101 4,100 33,723 (40,757) 23,750
INCOME TAXES 89 0 11,803 0 (3,522)
NET INCOME (LOSS) 12 4,100 21,920 (40,757) 27,272
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 11,879 (674) 768 26,315 (905,712)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 (31)
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $11,891 $3,426 $22,688 ($14,442) ($878,409)
</TABLE>
<PAGE>
<TABLE>
ALANDCO INC. AND SUBSIDIARIES 14
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Alandco/ Adjusting
Alandco, Cascade, Alandco & Elim. Alandco Inc.
ASSETS Inc. Inc. I, Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $2,524 $0 $0 $2,524
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0
Total property, plant and eqpt. - net 0 2,524 0 0 2,524
CURRENT ASSETS
Cash and cash equivalents (3,954) 3,902 0 0 (52)
Customer receivables - net 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 1,524 2,761 (1,081) 0 3,204
Total current assets (2,430) 6,663 (1,081) 0 3,152
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 28,853 1,366 0 (28,853) 1,366
Other (1,932) 2,298 714 0 1,080
Total other assets 26,921 3,664 714 (28,853) 2,446
TOTAL ASSETS $24,491 $12,851 ($367) ($28,853) $8,122
CAPITALIZATION
Common shareholders' equity $24,491 $12,032 ($367) ($28,853) $7,303
Pref. stock without sinking fund requirements 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 24,491 12,032 (367) (28,853) 7,303
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0
Accounts payable 0 768 0 0 768
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Other 0 22 0 0 22
Total current liabilities 0 790 0 0 790
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0
Other 0 29 0 0 29
Total other liabilities & deferred credits 0 29 0 0 29
TOTAL CAPITALIZATION AND LIABILITIES $24,491 $12,851 ($367) ($28,853) $8,122
</TABLE>
<PAGE>
<TABLE>
ALANDCO INC. AND SUBSIDIARIES 15
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Alandco/ Adjusting
Alandco, Cascade, Alandco & Elim. Alandco Inc.
INCOME STATEMENT Inc. Inc. I, Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $16 $0 $0 $16
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 0 536 0 0 536
Depreciation & amortization 0 5 0 0 5
Taxes other than income taxes 0 102 0 0 102
Total operating expenses 0 643 0 0 643
OPERATING INCOME 0 (627) 0 0 (627)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 1,858 (1,464) 0 1,224 1,618
Total other deductions - net 1,858 (1,464) 0 1,224 1,618
INCOME BEFORE INCOME TAXES 1,858 (2,091) 0 1,224 991
INCOME TAXES 1,189 (867) 0 0 322
NET INCOME (LOSS) 669 (1,224) 0 1,224 669
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (6,799) (18,899) 2,014 16,885 (6,799)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($6,130) ($20,123) $2,014 $18,109 ($6,130)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 16
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997 ESI
Thousands of Dollars CH Oremesa Geothermal
<CAPTION> Inc./ Inc., and
ESI FPL CH ESI ESI ESI
Energy, Investments Ormesa Geothermal Ebensburg, Sierra,
ASSETS Inc. Inc LP, Inc. II, Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $1,286 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. (545) 0 0 0 0 0
Total property, plant and eqpt. - net 741 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents (1,346) 0 0 0 0 0
Customer receivables - net 3 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 54,536 71,064 (2,306) (22,792) 5,166 1,730
Total current assets 53,193 71,064 (2,306) (22,792) 5,166 1,730
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 187,116 143,589 4,119 9,377 950 4,950
Other 1,702 0 0 0 0 0
Total other assets 188,818 143,589 4,119 9,377 950 4,950
TOTAL ASSETS $242,752 $214,653 $1,813 ($13,415) $6,116 $6,680
CAPITALIZATION
Common shareholders' equity $125,981 $53,521 $3,846 ($16,826) ($10,725) $4,070
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 500 0 0 0 6,678 0
Total capitalization 126,481 53,521 3,846 (16,826) (4,047) 4,070
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 600 0 0 0 0 0
Accounts payable 1,875 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 133,392 4,854 472 127 3,922 59
Total current liabilities 135,867 4,854 472 127 3,922 59
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (19,891) 156,278 (2,505) 3,284 6,241 2,551
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 295 0 0 0 0 0
Total other liabilities & deferred credits (19,596) 156,278 (2,505) 3,284 6,241 2,551
TOTAL CAPITALIZATION AND LIABILITIES $242,752 $214,653 $1,813 ($13,415) $6,116 $6,680
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 17
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997 ESI
Thousands of Dollars CH Oremesa Geothermal
<CAPTION> Inc./ Inc., and
ESI FPL CH ESI ESI ESI
Energy, Investments Ormesa Geothermal Ebensburg, Sierra,
INCOME STATEMENT Inc. Inc LP, Inc. II, Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $349 $0 $203 $200 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 10,852 5 126 22 12 9
Depreciation & amortization 219 0 0 0 0 0
Taxes other than income taxes 154 0 1 1 0 1
Total operating expenses 11,225 5 127 23 12 10
OPERATING INCOME (10,876) (5) 76 177 (12) (10)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 (799) 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 33,272 908 0 0 0 0
Total other deductions - net 33,272 908 0 0 (799) 0
INCOME BEFORE INCOME TAXES 22,396 903 76 177 (811) (10)
INCOME TAXES 943 457 (202) (247) (277) (67)
NET INCOME (LOSS) 21,453 446 278 424 (534) 57
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 0 2,291 1,725 15,269 362 2,870
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $21,453 $2,737 $2,003 $15,693 ($172) $2,927
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 18
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars CH POSDEF, ESI
<CAPTION> Inc./ Antilles, Inc./
ESI ESI ESI CH ESI ESI
Kern Front, Double "C", Victory, POSDEF LP, San Emidio, Antilles LP,
ASSETS Inc. Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0 0
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 6,746 5,181 833 (13,249) 55 12,059
Total current assets 6,746 5,181 833 (13,249) 55 12,059
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 2,946 5,638 7,670 22,107 0 0
Other 0 0 0 0 0 0
Total other assets 2,946 5,638 7,670 22,107 0 0
TOTAL ASSETS $9,692 $10,819 $8,503 $8,858 $55 $12,059
CAPITALIZATION
Common shareholders' equity $7,068 $6,989 $4,885 $20,771 ($102) $11,946
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 7,068 6,989 4,885 20,771 (102) 11,946
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 61 56 53 416 157 113
Total current liabilities 61 56 53 416 157 113
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 2,563 3,774 3,565 (12,329) 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits 2,563 3,774 3,565 (12,329) 0 0
TOTAL CAPITALIZATION AND LIABILITIES $9,692 $10,819 $8,503 $8,858 $55 $12,059
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 19
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997 ESI
Thousands of Dollars CH POSDEF, Antilles,
<CAPTION> Inc./ Inc./
ESI ESI ESI CH ESI ESI
Kern Front, Double "C", Victory, POSDEF LP, San Emidio, Antilles
INCOME STATEMENT Inc. Inc. Inc. Inc. Inc. LP, Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $510 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 11 9 23 120 1 0
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 1 1 0 1 0 0
Total operating expenses 12 10 23 121 1 0
OPERATING INCOME (12) (10) (23) 389 (1) 0
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 0 3,184 0 0 0
Total other deductions - net 0 0 3,184 0 0 0
INCOME BEFORE INCOME TAXES (12) (10) 3,161 389 (1) 0
INCOME TAXES (30) (39) 1,063 (547) 0 0
NET INCOME (LOSS) 18 29 2,098 936 (1) 0
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 2,079 1,934 5,818 2,196 (101) (3,632)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $2,097 $1,963 $7,916 $3,132 ($102) ($3,632)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 20
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997 ESI ESI Dixie
Thousands of Dollars Bay Area, Valley,
<CAPTION> Inc./ Inc./
ESI Hyperion ESI ESI ESI ESI Dixie
Pittsylvania VIII, SEMASS Corp. Bay Area Jonesboro, Valley
ASSETS Inc. Inc. LP, Inc. GP, Inc. Inc. LP, Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $67 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 67 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 3,679 0 0 0 0
Customer receivables - net 0 785 0 0 0 0
Materials, supplies & fossil fuel inventory 0 205 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 412 5,732 (1,431) 15,918 (6,426) (11,548)
Total current assets 412 10,401 (1,431) 15,918 (6,426) (11,548)
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments (52) 500 0 27,175 0 0
Other 0 79,133 0 0 0 0
Total other assets (52) 79,633 0 27,175 0 0
TOTAL ASSETS $360 $90,101 ($1,431) $43,093 ($6,426) ($11,548)
CAPITALIZATION
Common shareholders' equity ($169) ($6,377) ($1,760) $24,868 ($6,495) ($11,711)
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 66,993 0 0 0 0
Total capitalization (169) 60,616 (1,760) 24,868 (6,495) (11,711)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 499 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 1,240 0 0 0 0
Other 523 4,552 329 503 116 163
Total current liabilities 523 6,291 329 503 116 163
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 6 23,142 0 17,722 (47) 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 52 0 0 0 0
Total other liabilities & deferred credits 6 23,194 0 17,722 (47) 0
TOTAL CAPITALIZATION AND LIABILITIES $360 $90,101 ($1,431) $43,093 ($6,426) ($11,548)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 21
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997 ESI ESI Dixie
Thousands of Dollars Bay Area, Valley,
<CAPTION> Inc./ Inc./
ESI Hyperion ESI ESI ESI ESI Dixie
Pittsylvania VIII, SEMASS Corp. Bay Area Jonesboro, Valley
INCOME STATEMENT Inc. Inc. LP, Inc. GP, Inc. Inc. LP, Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $400 $20,174 $0 $250 $0 $72
OPERATING EXPENSES
Fuel, purchased power & interchange 0 1,790 0 0 0 0
Other operations and maintenance 114 3,445 5 201 3 29
Depreciation & amortization 0 1,979 0 0 0 0
Taxes other than income taxes 0 62 0 1 1 1
Total operating expenses 114 7,276 5 202 4 30
OPERATING INCOME 286 12,898 (5) 48 (4) 42
OTHER INCOME (DEDUCTIONS):
Interest charges 0 (4,831) 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 38 30 0 36 39 0
Total other deductions - net 38 (4,801) 0 36 39 0
INCOME BEFORE INCOME TAXES 324 8,097 (5) 84 35 42
INCOME TAXES 116 1,482 275 (78) 181 15
NET INCOME (LOSS) 208 6,615 (280) 162 (146) 27
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 948 (9,283) (275) 6,649 8,582 21,421
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $1,156 ($2,668) ($555) $6,811 $8,436 $21,448
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 22
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Harper
ESI West ESI MES ESI Sky Lake Hyperion
Enfield, Multitrade Financial River, Operations, IX,
ASSETS Inc. LP, Inc. Corp Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $62
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 62
CURRENT ASSETS
Cash and cash equivalents 0 0 13 0 0 14,384
Customer receivables - net 0 0 0 0 0 1,705
Materials, supplies & fossil fuel inventory 0 0 0 0 0 142
Deferred clause expenses 0 0 0 0 0 0
Other (6,655) (3,201) (3,342) 14,905 526 10,018
Total current assets (6,655) (3,201) (3,329) 14,905 526 26,249
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 (2,026) 28,627 5,011 0 16
Other 0 0 0 0 0 102,975
Total other assets 0 (2,026) 28,627 5,011 0 102,991
TOTAL ASSETS ($6,655) ($5,227) $25,298 $19,916 $526 $129,302
CAPITALIZATION
Common shareholders' equity ($6,735) ($5,503) $30,570 ($2,394) $202 ($91,501)
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 183,162
Total capitalization (6,735) (5,503) 30,570 (2,394) 202 91,661
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 1,017
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 3,155
Other 119 51 (76) 98 324 1,110
Total current liabilities 119 51 (76) 98 324 5,282
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (39) 225 (5,196) 22,212 0 32,305
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 54
Total other liabilities & deferred credits (39) 225 (5,196) 22,212 0 32,359
TOTAL CAPITALIZATION AND LIABILITIES ($6,655) ($5,227) $25,298 $19,916 $526 $129,302
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 23
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Harper
ESI West ESI MES ESI Sky Lake Hyperion
Enfield, Multitrade Financial River, Operations, IX,
INCOME STATEMENT Inc. LP, Inc. Corp Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $218 $22,624
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 1,772
Other operations and maintenance 7 5 16 44 128 4,049
Depreciation & amortization 0 0 0 0 0 2,224
Taxes other than income taxes 1 0 1 2 0 68
Total operating expenses 8 5 17 46 128 8,113
OPERATING INCOME (8) (5) (17) (46) 90 14,511
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 (7,025)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 50 1,382 4,533 9,543 0 16
Total other deductions - net 50 1,382 4,533 9,543 0 (7,009)
INCOME BEFORE INCOME TAXES 42 1,377 4,516 9,497 90 7,502
INCOME TAXES 87 620 (2,327) 3,159 32 (2,039)
NET INCOME (LOSS) (45) 757 6,843 6,338 58 9,541
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 9,125 6,614 7,368 12,723 144 (10,713)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $9,080 $7,371 $14,211 $19,061 $202 ($1,172)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 24
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> ESI ESI
ESI ESI Brady California ESI ESI WTE Montgomery
Brady, Power Service Holdings, Steamboat, Development, County,
ASSETS Inc. Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0 0
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other (1,217) 0 4,168 15 63 48,437
Total current assets (1,217) 0 4,168 15 63 48,437
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments (3,108) 0 0 0 0 29,562
Other 0 0 0 0 0 0
Total other assets (3,108) 0 0 0 0 29,562
TOTAL ASSETS ($4,325) $0 $4,168 $15 $63 $77,999
CAPITALIZATION
Common shareholders' equity $450 $0 $4,062 $61 $62 ($1,177)
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 12,005
Total capitalization 450 0 4,062 61 62 10,828
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 686 0 106 (46) 1 19,130
Total current liabilities 686 0 106 (46) 1 19,130
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (5,461) 0 0 0 0 48,041
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits (5,461) 0 0 0 0 48,041
TOTAL CAPITALIZATION AND LIABILITIES ($4,325) $0 $4,168 $15 $63 $77,999
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 25
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> ESI ESI
ESI ESI Brady California ESI ESI WTE Montgomery
Brady, Power Service Holdings, Steamboat, Development, County,
INCOME STATEMENT Inc. Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $17 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 131 0 101 (86) 1 1
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0 0
Total operating expenses 131 0 101 (86) 1 1
OPERATING INCOME (131) 0 (101) 103 (1) (1)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 (1,043)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net (1,034) 0 0 0 0 0
Total other deductions - net (1,034) 0 0 0 0 (1,043)
INCOME BEFORE INCOME TAXES (1,165) 0 (101) 103 (1) (1,044)
INCOME TAXES (432) 0 (34) 36 (23) (78)
NET INCOME (LOSS) (733) 0 (67) 67 22 (966)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (6,089) (116) 131 (6) 3,149 (13,067)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($6,822) ($116) $64 $61 $3,171 ($14,033)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 26
CONSOLIDATING BALANCE SHEET ESI ESI Cherokee GP, Inc./
DECEMBER 31, 1997 Doswell ESI Cherokee LP, Inc./ ESI
Thousands of Dollars Inc./ ESI Cherokee Calistoga
<CAPTION> ESI Doswell Holdings, Inc./ ESI LP, Inc./
ESI GP, Inc./ ESI Cherokee MGP, Inc./ Operating ESI
LP, ESI Doswell Cherokee County Services, Calistoga
ASSETS Inc. GP II, Inc. Cogeneration Corp. Inc. GP, Inc.
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $411,020 $0 $7 $0
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 69,875 0 0
Less accumulated depr. & amort. 0 (67,101) 0 0 0
Total property, plant and eqpt. - net 0 343,919 69,875 7 0
CURRENT ASSETS
Cash and cash equivalents 0 5,249 1,221 873 0
Customer receivables - net 0 21,767 2,924 0 0
Materials, supplies & fossil fuel inventory 0 35,948 0 0 0
Deferred clause expenses 0 0 0 0 0
Other (1,302) 16,194 (71) 2,142 189
Total current assets (1,302) 79,158 4,074 3,015 189
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments (3,108) 0 0 0 9,845
Other 0 65,102 6,620 1,344 0
Total other assets (3,108) 65,102 6,620 1,344 9,845
TOTAL ASSETS ($4,410) $488,179 $80,569 $4,366 $10,034
CAPITALIZATION
Common shareholders' equity $1,051 $75,680 $1,879 $2,323 $9,115
Pref. stock without sinking fund requirements 0 0 0 0 0
Long-term debt 0 315,500 72,000 0 0
Total capitalization 1,051 391,180 73,879 2,323 9,115
CURRENT LIABILITIES
Short-term debt 0 36,283 0 0 0
Cur. matur. of long-term debt & pref. stock 0 18,000 0 0 0
Accounts payable 0 12,297 1,767 190 0
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 3,181 0 0 0
Other 0 13,938 4,923 1,839 175
Total current liabilities 0 83,699 6,690 2,029 175
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (5,461) 13,300 0 14 744
Deferred regulatory credit - income taxes 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0
Other 0 0 0 0 0
Total other liabilities & deferred credits (5,461) 13,300 0 14 744
TOTAL CAPITALIZATION AND LIABILITIES ($4,410) $488,179 $80,569 $4,366 $10,034
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 27
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS ESI Cherokee GP, Inc./
DECEMBER 31, 1997 ESI Doswell ESI Cherokee LP, Inc./ ESI
Thousands of Dollars Inc./ ESI Cherokee Calistoga
<CAPTION> ESI Doswell Holdings, Inc./ ESI LP, Inc./
ESI GP, Inc./ ESI Cherokee MGP, Inc./ Operating ESI
LP, ESI Doswell Cherokee County Services, Calistoga
INCOME STATEMENT Inc. GP II, Inc. Cogeneration Corp. Inc. GP, Inc.
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $137,629 $1,530 $1,163 $325
OPERATING EXPENSES
Fuel, purchased power & interchange 0 55,633 0 0 0
Other operations and maintenance 0 16,335 1,341 625 175
Depreciation & amortization 0 16,930 0 82 0
Taxes other than income taxes 0 1,343 4 3 0
Total operating expenses 0 90,241 1,345 710 175
OPERATING INCOME 0 47,388 185 453 150
OTHER INCOME (DEDUCTIONS):
Interest charges 0 (47,300) 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net (1,034) 4,384 0 0 2,360
Total other deductions - net (1,034) (42,916) 0 0 2,360
INCOME BEFORE INCOME TAXES (1,034) 4,472 185 453 2,510
INCOME TAXES (380) 4,174 71 165 879
NET INCOME (LOSS) (654) 298 114 288 1,631
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (3,749) 17,776 0 0 0
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($4,403) $18,074 $114 $288 $1,631
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 28
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997 ESI ESI
Thousands of Dollars Vansycle Silverado ESI
<CAPTION> GP, Inc./ Delaware, LLC/ Harper Harper Lake
ESI ESI ESI Lake Lake Benton
Mojave, Vansycle Silverado Acquistions, Holdings, Holdings,
ASSETS Inc. LP, Inc. Holding, LLC Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $380 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 3,119 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 3,119 380 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 36 0 0 0
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 2,100 0 0
Deferred clause expenses 0 0 0 0 0 0
Other (13) 101 (2,959) 13 (3,881) 9
Total current assets (13) 101 (2,923) 2,113 (3,881) 9
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 180 0 0 0 0 0
Other 0 508 680 0 0 0
Total other assets 180 508 680 0 0 0
TOTAL ASSETS $167 $3,728 ($1,863) $2,113 ($3,881) $9
CAPITALIZATION
Common shareholders' equity $160 $3,428 $2,025 ($24) ($4,252) ($17)
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 10,000 0 0 0
Total capitalization 160 3,428 12,025 (24) (4,252) (17)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 (306) 0 0 0
Other 15 300 226 2,137 371 26
Total current liabilities 15 300 (80) 2,137 371 26
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (8) 0 (29,793) 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 15,985 0 0 0
Total other liabilities & deferred credits (8) 0 (13,808) 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $167 $3,728 ($1,863) $2,113 ($3,881) $9
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 29
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997 ESI
Thousands of Dollars Vansycle ESI
<CAPTION> GP, Inc./ ESI Silverado Harper Lake
ESI ESI Delaware, LLC/ Harper Lake Lake Benton
Mojave, Vansycle ESI Silverado Acquistions, Holdings, Holdings,
INCOME STATEMENT Inc. LP, Inc. Holding, LLC Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $2,542 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 15 297 1,477 37 371 26
Depreciation & amortization 0 0 31 0 0 0
Taxes other than income taxes 0 3 28 0 0 0
Total operating expenses 15 300 1,536 37 371 26
OPERATING INCOME (15) (300) 1,006 (37) (371) (26)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 26 9 751 0 11,459 0
Total other deductions - net 26 9 751 0 11,459 0
INCOME BEFORE INCOME TAXES 11 (291) 1,757 (37) 11,088 (26)
INCOME TAXES 4 (102) 1,514 (13) 3,882 (9)
NET INCOME (LOSS) 7 (189) 243 (24) 7,206 (17)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 0 0 0 0 0 0
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $7 ($189) $243 ($24) $7,206 ($17)
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 30
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars ESI
<CAPTION> ESI Northern Sullivan Virginia
Ormesa Cross Street Power Adjusting ESI
Holdings, Investments, Investments, Services, & Elim. Energy, Inc.
ASSETS Inc. Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $412,822
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 72,994
Less accumulated depr. & amort. 0 0 0 0 0 (67,646)
Total property, plant and eqpt. - net 0 0 0 0 0 418,170
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0 24,109
Customer receivables - net 0 0 0 0 0 27,184
Materials, supplies & fossil fuel inventory 0 0 0 0 0 38,395
Deferred clause expenses 0 0 0 0 0 0
Other 0 68,173 186,148 0 (425,810) 24,330
Total current assets 0 68,173 186,148 0 (425,810) 114,018
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 5 5 0 (250,716) 230,378
Other 563 0 0 0 0 258,627
Total other assets 563 5 5 0 (250,716) 489,005
TOTAL ASSETS $563 $68,178 $186,153 $0 ($676,526) $1,021,193
CAPITALIZATION
Common shareholders' equity $563 $68,178 $181,153 $0 ($235,532) $243,607
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 (265,338) 401,500
Total capitalization 563 68,178 181,153 0 (500,870) 645,107
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 36,283
Cur. matur. of long-term debt & pref. stock 0 0 0 0 (600) 18,000
Accounts payable 0 0 0 0 0 17,645
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 (4,394) 2,876
Other 0 0 0 0 (170,662) 24,659
Total current liabilities 0 0 0 0 (175,656) 99,463
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 255,237
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 5,000 0 0 21,386
Total other liabilities & deferred credits 0 0 5,000 0 0 276,623
TOTAL CAPITALIZATION AND LIABILITIES $563 $68,178 $186,153 $0 ($676,526) $1,021,193
</TABLE>
<PAGE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 31
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars ESI
<CAPTION> ESI Northern Sullivan Virginia
Ormesa Cross Street Power Adjusting ESI
Holdings, Investments, Investments, Services, & Elim. Energy, Inc.
INCOME STATEMENT Inc. Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 ($436) $187,770
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 59,195
Other operations and maintenance 0 0 0 0 (436) 39,647
Depreciation & amortization 0 0 0 0 0 21,465
Taxes other than income taxes 0 0 0 0 0 1,678
Total operating expenses 0 0 0 0 (436) 121,985
OPERATING INCOME 0 0 0 0 0 65,785
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 11,846 (49,152)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 168 485 0 (53,325) 17,280
Total other deductions - net 0 168 485 0 (41,479) (31,872)
INCOME BEFORE INCOME TAXES 0 168 485 0 (41,479) 33,913
INCOME TAXES 0 59 170 0 0 12,460
NET INCOME (LOSS) 0 109 315 0 (41,479) 21,453
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 0 0 0 388 (82,531) 0
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $0 $109 $315 $388 ($124,010) $21,453
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 32
CONSOLIDATING BALANCE SHEET FPL
DECEMBER 31, 1997 International
Thousands of Dollars Holdings II,
<CAPTION> FPL Inc./
FPL Group International FPL Owenreagh Owenreagh Werfa
International Investment International Cayman Power Cayman, Cayman,
ASSETS Inc. Company Holdings, Inc. Partners, LLC Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $64 $0 $0 $0 $8,847 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. (4) 0 0 0 (314) 0
Total property, plant and eqpt. - net 60 0 0 0 8,533 0
CURRENT ASSETS
Cash and cash equivalents (864) 0 0 0 922 0
Customer receivables - net 4 0 0 0 449 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 2,144 0 0 0 0 0
Total current assets 1,284 0 0 0 1,371 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 72,047 14,777 4,975 0 0 0
Other (2,354) 0 0 0 1,125 23
Total other assets 69,693 14,777 4,975 0 1,125 23
TOTAL ASSETS $71,037 $14,777 $4,975 $0 $11,029 $23
CAPITALIZATION
Common shareholders' equity $69,368 $14,777 $4,975 $0 $10,239 $22
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 69,368 14,777 4,975 0 10,239 22
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 2,841 0 0 0 154 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 1,024 0 0 0 525 1
Total current liabilities 3,865 0 0 0 679 1
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (2,196) 0 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 111 0
Total other liabilities & deferred credits (2,196) 0 0 0 111 0
TOTAL CAPITALIZATION AND LIABILITIES $71,037 $14,777 $4,975 $0 $11,029 $23
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 33
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS FPL
DECEMBER 31, 1997 International
Thousands of Dollars Holdings II,
<CAPTION> FPL Inc./
FPL Group International FPL Owenreagh Owenreagh Werfa
International Investment International Cayman Power Cayman, Cayman,
INCOME STATEMENT Inc. Company Holdings, Inc. Partners, LLC Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $1,043 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 7,933 3 (23) 0 241 4
Depreciation & amortization 4 0 0 0 399 0
Taxes other than income taxes 3 1 1 1 1 1
Total operating expenses 7,940 4 (22) 1 641 5
OPERATING INCOME (7,940) (4) 22 (1) 402 (5)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net (4,390) 772 (15) 0 (102) 0
Total other deductions - net (4,390) 772 (15) 0 (102) 0
INCOME BEFORE INCOME TAXES (12,330) 768 7 (1) 300 (5)
INCOME TAXES (4,419) 0 0 0 0 0
NET INCOME (LOSS) (7,911) 768 7 (1) 300 (5)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (4,501) 90 (64) (35) (69) (152)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($12,412) $858 ($57) ($36) $231 ($157)
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 34
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Mynydd Crete I Crete II Crete III Faeto Monte San
Gordu Cayman, Cayman, Cayman, Cayman, Giorgio
ASSETS Cayman, Inc. Inc. Inc. Inc. Inc. Cayman, Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0 0
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total current assets 0 0 0 0 0 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 0 0 0 32 19
Other 0 478 230 408 1,738 474
Total other assets 0 478 230 408 1,770 493
TOTAL ASSETS $0 $478 $230 $408 $1,770 $493
CAPITALIZATION
Common shareholders' equity ($39) $375 $227 $401 $1,775 $507
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization (39) 375 227 401 1,775 507
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 39 103 3 7 (5) (14)
Total current liabilities 39 103 3 7 (5) (14)
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits 0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $0 $478 $230 $408 $1,770 $493
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 35
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Mynydd Crete I Crete II Crete III Faeto Monte San
Gordu Cayman, Cayman, Cayman, Cayman, Giorgio
INCOME STATEMENT Cayman, Inc. Inc. Inc. Inc. Inc. Cayman, Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 45 5 2 2 4 4
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 1 1 1 1 1 1
Total operating expenses 46 6 3 3 5 5
OPERATING INCOME (46) (6) (3) (3) (5) (5)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 0 0 0 0 0
Total other deductions - net 0 0 0 0 0 0
INCOME BEFORE INCOME TAXES (46) (6) (3) (3) (5) (5)
INCOME TAXES 0 0 0 0 0 0
NET INCOME (LOSS) (46) (6) (3) (3) (5) (5)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (457) (692) (288) (283) (199) (131)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($503) ($698) ($291) ($286) ($204) ($136)
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 36
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> FPL Karaha
San FPL Termo- FPL Bodas
Bartolomeo Riva-Caleone Mamonal, Candelaria, Termovalle, Investment
ASSETS Cayman, Inc. Cayman, Inc. Inc. Inc. Inc. Corp.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0 0
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 0 0 134 5 0 0
Total current assets 0 0 134 5 0 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 14 0 476 0 172 36,869
Other 0 0 0 0 0 0
Total other assets 14 0 476 0 172 36,869
TOTAL ASSETS $14 $0 $610 $5 $172 $36,869
CAPITALIZATION
Common shareholders' equity $27 $0 $610 $30 $266 $36,869
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 27 0 610 30 266 36,869
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other (13) 0 0 0 0 0
Total current liabilities (13) 0 0 0 0 0
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 (25) (94) 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits 0 0 0 (25) (94) 0
TOTAL CAPITALIZATION AND LIABILITIES $14 $0 $610 $5 $172 $36,869
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 37
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> FPL Karaha
San FPL Termo- FPL Bodas
Bartolomeo Riva-Caleone Mamonal, Candelaria, Termovalle, Investment
INCOME STATEMENT Cayman, Inc. Cayman, Inc. Inc. Inc. Inc. Corp.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0 $72
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 3 3 47 32 123 192
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 1 1 0 0 0 1
Total operating expenses 4 4 47 32 123 193
OPERATING INCOME (4) (4) (47) (32) (123) (121)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 0 4 0 151 292
Total other deductions - net 0 0 4 0 151 292
INCOME BEFORE INCOME TAXES (4) (4) (43) (32) 28 171
INCOME TAXES 0 0 (14) (11) 10 0
NET INCOME (LOSS) (4) (4) (29) (21) 18 171
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (131) (2) (223) (35) (193) (119)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($135) ($6) ($252) ($56) ($175) $52
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 38
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Adjusting FPL Group
& Elim. International,
ASSETS Entries Inc.
<S> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $8,911
Nuclear fuel under capital lease 0 0
Construction work in progress 0 0
Less accumulated depr. & amort. 0 (318)
Total property, plant and eqpt. - net 0 8,593
CURRENT ASSETS
Cash and cash equivalents 0 58
Customer receivables - net 0 453
Materials, supplies & fossil fuel inventory 0 0
Deferred clause expenses 0 0
Other (454) 1,829
Total current assets (454) 2,340
OTHER ASSETS:
Special use funds of FPL 0 0
Other investments (72,047) 57,334
Other 0 2,122
Total other assets (72,047) 59,456
TOTAL ASSETS ($72,501) $70,389
CAPITALIZATION
Common shareholders' equity ($72,047) $68,382
Pref. stock without sinking fund requirements 0 0
Long-term debt 0 0
Total capitalization (72,047) 68,382
CURRENT LIABILITIES
Short-term debt 0 0
Cur. matur. of long-term debt & pref. stock 0 0
Accounts payable 0 2,995
Customers' deposits 0 0
Accrued interest and taxes 0 0
Other (454) 1,216
Total current liabilities (454) 4,211
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 (2,315)
Deferred regulatory credit - income taxes 0 0
Unamortized investment tax credits 0 0
Storm and property insurance reserve 0 0
Other 0 111
Total other liabilities & deferred credits 0 (2,204)
TOTAL CAPITALIZATION AND LIABILITIES ($72,501) $70,389
</TABLE>
<PAGE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 39
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
Adjusting FPL Group
& Elim. International,
INCOME STATEMENT Entries Inc.
<S> <C> <C>
OPERATING REVENUES $0 $1,115
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0
Other operations and maintenance 0 8,620
Depreciation & amortization 0 403
Taxes other than income taxes 0 17
Total operating expenses 0 9,040
OPERATING INCOME 0 (7,925)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0
Preferred stock dividends - FPL 0 0
Other-net (1,132) (4,420)
Total other deductions - net (1,132) (4,420)
INCOME BEFORE INCOME TAXES (1,132) (12,345)
INCOME TAXES 0 (4,434)
NET INCOME (LOSS) (1,132) (7,911)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 2,983 (4,501)
DEDUCT:
Dividends 0 0
Other 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $1,851 ($12,412)
</TABLE>
<PAGE>
<TABLE>
PALMS INSURANCE COMPANY, LIMITED AND SUSIDIARY 40
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars Palms
<CAPTION> Palms Palmetto Adjusting Insurance
Insurance Insurance & Company,
Company, Company, Elim. Limited
ASSETS Limited Limited Entries Consolidated
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0
Construction work in progress 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 452 0 0 452
Customer receivables - net 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0
Deferred clause expenses 0 0 0 0
Other 4,391 0 0 4,391
Total current assets 4,843 0 0 4,843
OTHER ASSETS:
Special use funds of FPL 0 0 0 0
Other investments 17,716 0 0 17,716
Other 1,468 0 0 1,468
Total other assets 19,184 0 0 19,184
TOTAL ASSETS $24,027 $0 $0 $24,027
CAPITALIZATION
Common shareholders' equity $6,405 $0 $0 $6,405
Pref. stock without sinking fund requirements 0 0 0 0
Long-term debt 0 0 0 0
Total capitalization 6,405 0 0 6,405
CURRENT LIABILITIES
Short-term debt 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0
Accounts payable 14 0 0 14
Customers' deposits 0 0 0 0
Accrued interest and taxes 0 0 0 0
Other 1,596 0 0 1,596
Total current liabilities 1,610 0 0 1,610
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0
Unamortized investment tax credits 0 0 0 0
Storm and property insurance reserve 0 0 0 0
Other 16,012 0 0 16,012
Total other liabilities & deferred credits 16,012 0 0 16,012
TOTAL CAPITALIZATION AND LIABILITIES $24,027 $0 $0 $24,027
</TABLE>
<PAGE>
<TABLE>
PALMS INSURANCE COMPANY, LIMITED AND SUSIDIARY 41
CONSOLIDATING STATEMENTS OF INCOME AND
DECEMBER 31, 1997
Thousands of Dollars Palms
<CAPTION> Palms Palmetto Insurance
Insurance Insurance Adjusting Company,
Company, Company, & Elim. Limited
INCOME STATEMENT Limited Limited Entries Consolidated
<S> <C> <C> <C> <C>
OPERATING REVENUES $12,019 $0 $0 $12,019
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0
Other operations and maintenance 11,228 0 0 11,228
Depreciation & amortization 0 0 0 0
Taxes other than income taxes 0 0 0 0
Total operating expenses 11,228 0 0 11,228
OPERATING INCOME 791 0 0 791
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0
Other-net 0 0 0 0
Total other deductions - net 0 0 0 0
INCOME BEFORE INCOME TAXES 791 0 0 791
INCOME TAXES 277 0 0 277
NET INCOME (LOSS) 514 0 0 514
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 3,675 1,069 (1,069) 3,675
DEDUCT:
Dividends 0 1,069 (1,069) 0
Other 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $4,189 $0 $0 $4,189
</TABLE>
<PAGE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 42
CONSOLIDATING BALANCE SHEET
RETAINED EARNINGS
DECEMBER 31, 1997 Telesat
Thousands of Dollars Telesat Cablevision
<CAPTION> Cablevision Cable of South
of South Cable LP Cable Adjusting Florida,
Florida, LP I, (Pasco), LP III, & Elim. Inc.
ASSETS Inc. Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 18 10 0 0 28
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 0 0 0 1,772 0 1,772
Total current assets 0 18 10 1,772 0 1,800
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 14,150 0 2,857 20,500 (14,150) 23,357
Other 0 0 0 0 0 0
Total other assets 14,150 0 2,857 20,500 (14,150) 23,357
TOTAL ASSETS $14,150 $18 $2,867 $22,272 ($14,150) $25,157
CAPITALIZATION
Common shareholders' equity $11,831 $0 $0 $14,150 ($14,150) $11,831
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 11,831 0 0 14,150 (14,150) 11,831
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Other 2,319 18 2,867 8,122 0 13,326
Total current liabilities 2,319 18 2,867 8,122 0 13,326
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits 0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $14,150 $18 $2,867 $22,272 ($14,150) $25,157
</TABLE>
<PAGE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 43
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997 Telesat
Thousands of Dollars Telesat Cablevision
<CAPTION> Cablevision Cable of South
of South Cable LP Cable Adjusting Florida,
Florida, LP I, (Pasco), LP III, & Ellim. Inc.
INCOME STATEMENT Inc. Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 0 0 0 0 0 0
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0 0
Total operating expenses 0 0 0 0 0 0
OPERATING INCOME 0 0 0 0 0 0
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net (1,197) 2,652 0 (4,600) 1,197 (1,948)
Total other deductions - net (1,197) 2,652 0 (4,600) 1,197 (1,948)
INCOME BEFORE INCOME TAXES (1,197) 2,652 0 (4,600) 1,197 (1,948)
INCOME TAXES 0 1,023 0 (1,774) 0 (751)
NET INCOME (LOSS) (1,197) 1,629 0 (2,826) 1,197 (1,197)
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 3,963 7,437 0 (3,474) (3,963) 3,963
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $2,766 $9,066 $0 ($6,300) ($2,766) $2,766
</TABLE>
<PAGE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 44
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars Telesat
<CAPTION> Cablevision Telesat
Telesat Mayberry of South Adjusting Cablevision
Cablevision Investments, Florida, & Elim. Inc.
ASSETS Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 3 28 0 31
Customer receivables - net 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 62,305 (432) 1,772 (27,978) 35,667
Total current assets 62,305 (429) 1,800 (27,978) 35,698
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments (11,955) 20,401 23,357 (31,803) 0
Other 0 0 0 0 0
Total other assets (11,955) 20,401 23,357 (31,803) 0
TOTAL ASSETS $50,350 $19,972 $25,157 ($59,781) $35,698
CAPITALIZATION
Common shareholders' equity ($16,432) $19,972 $11,831 ($31,803) ($16,432)
Pref. stock without sinking fund requirements 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization (16,432) 19,972 11,831 (31,803) (16,432)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0
Accounts payable 16 0 0 0 16
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Other 15,032 0 13,326 (27,978) 380
Total current liabilities 15,048 0 13,326 (27,978) 396
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 51,202 0 0 0 51,202
Deferred regulatory credit - income taxes 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0
Other 532 0 0 0 532
Total other liabilities & deferred credits 51,734 0 0 0 51,734
TOTAL CAPITALIZATION AND LIABILITIES $50,350 $19,972 $25,157 ($59,781) $35,698
</TABLE>
<PAGE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 45
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars Telesat
<CAPTION> Cablevision Telesat
Telesat Mayberry of South Adjusting Cablevision
Cablevision Investments, Florida, & ELim. Inc.
INCOME STATEMENT Inc. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 90 0 0 0 90
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0
Total operating expenses 90 0 0 0 90
OPERATING INCOME (90) 0 0 0 (90)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 342 1,236 (1,948) 394 24
Total other deductions - net 342 1,236 (1,948) 394 24
INCOME BEFORE INCOME TAXES 252 1,236 (1,948) 394 (66)
INCOME TAXES 252 433 (751) 0 (66)
NET INCOME (LOSS) 0 803 (1,197) 394 0
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (30,663) 0 3,963 (3,963) (30,663)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($30,663) $803 $2,766 ($3,569) ($30,663)
</TABLE>
<PAGE>
<TABLE>
TURNER FOODS CORPORATION AND SUBSIDIARIES 46
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars Agricultural
<CAPTION> Avon Management
Turner Citrus Services AMS
Foods Turner Nursery, Company Realty,
ASSETS Corporation Corporation Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $123,088 $63,371 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 0 0 0
Less accumulated depr. & amort. (24,406) (17,998) 0 0 0
Total property, plant and eqpt. - net 98,682 45,373 0 0 0
CURRENT ASSETS
Cash and cash equivalents 2,031 0 0 0 0
Customer receivables - net 1,939 0 0 0 55
Materials, supplies & fossil fuel inventory 22,144 65 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 3,543 0 0 0 0
Total current assets 29,657 65 0 0 55
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 0 184 0 0 0
Other 142 0 0 0 0
Total other assets 142 184 0 0 0
TOTAL ASSETS $128,481 $45,622 $0 $0 $55
CAPITALIZATION
Common shareholders' equity $106,474 $32,234 $0 $0 ($104)
Pref. stock without sinking fund requirements 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 106,474 32,234 0 0 (104)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0
Accounts payable 2,351 0 0 0 0
Customers' deposits 14 0 0 0 55
Accrued interest and taxes 751 0 0 0 0
Other 0 0 0 0 0
Total current liabilities 3,116 0 0 0 55
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 18,891 13,388 0 0 104
Deferred regulatory credit - income taxes 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0
Other 0 0 0 0 0
Total other liabilities & deferred credits 18,891 13,388 0 0 104
TOTAL CAPITALIZATION AND LIABILITIES $128,481 $45,622 $0 $0 $55
</TABLE>
<PAGE>
<TABLE>
TURNER FOODS CORPORATION AND SUBSIDIARIES 47
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars Agricultural
<CAPTION> Avon Management
Turner Citrus Services AMS
Foods Turner Nursery, Company Realty,
INCOME STATEMENT Corporation Corporation Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $36,089 $0 $0 $0 $165
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 31,627 0 0 0 130
Depreciation & amortization 5,313 0 0 0 0
Taxes other than income taxes 0 0 0 0 0
Total operating expenses 36,940 0 0 0 130
OPERATING INCOME (851) 0 0 0 35
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 952 (16) 0 0 0
Total other deductions - net 952 (16) 0 0 0
INCOME BEFORE INCOME TAXES 101 (16) 0 0 35
INCOME TAXES 89 0 0 0 0
NET INCOME (LOSS) 12 (16) 0 0 35
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 11,879 20,775 509 (2,626) 69
DEDUCT:
Dividends 0 0 509 (2,626) 0
Other 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $11,891 $20,759 $0 $0 $104
</TABLE>
<PAGE>
<TABLE>
TURNER FOODS CORPORATION AND SUBSIDIARIES 48
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Turner
Adjusting Foods
& Elim. Corporation
ASSETS Entries Consolidated
<S> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $186,459
Nuclear fuel under capital lease 0 0
Construction work in progress 0 0
Less accumulated depr. & amort. 0 (42,404)
Total property, plant and eqpt. - net 0 144,055
CURRENT ASSETS
Cash and cash equivalents 0 2,031
Customer receivables - net (30) 1,964
Materials, supplies & fossil fuel inventory 0 22,209
Deferred clause expenses 0 0
Other 30 3,573
Total current assets 0 29,777
OTHER ASSETS:
Special use funds of FPL 0 0
Other investments 0 184
Other 0 142
Total other assets 0 326
TOTAL ASSETS $0 $174,158
CAPITALIZATION
Common shareholders' equity $0 $138,604
Pref. stock without sinking fund requirements 0 0
Long-term debt 0 0
Total capitalization 0 138,604
CURRENT LIABILITIES
Short-term debt 0 0
Cur. matur. of long-term debt & pref. stock 0 0
Accounts payable 0 2,351
Customers' deposits 0 69
Accrued interest and taxes 0 751
Other 0 0
Total current liabilities 0 3,171
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 32,383
Deferred regulatory credit - income taxes 0 0
Unamortized investment tax credits 0 0
Storm and property insurance reserve 0 0
Other 0 0
Total other liabilities & deferred credits 0 32,383
TOTAL CAPITALIZATION AND LIABILITIES $0 $174,158
</TABLE>
<PAGE>
<TABLE>
TURNER FOODS CORPORATION AND SUBSIDIARIES 49
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION> Turner
Adjusting Foods
& Elim. Corporation
INCOME STATEMENT Entries Consolidated
<S> <C> <C>
OPERATING REVENUES ($208) $36,046
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0
Other operations and maintenance 94 31,851
Depreciation & amortization 2 5,315
Taxes other than income taxes 0 0
Total operating expenses 96 37,166
OPERATING INCOME (304) (1,120)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0
Preferred stock dividends - FPL 0 0
Other-net 285 1,221
Total other deductions - net 285 1,221
INCOME BEFORE INCOME TAXES (19) 101
INCOME TAXES 0 89
NET INCOME (LOSS) (19) 12
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR (18,727) 11,879
DEDUCT:
Dividends 2,117 0
Other 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR ($20,863) $11,891
</TABLE>
<PAGE>
<TABLE>
HJT HOLDINGS & LCR HOLDINGS AND SUBSIDIARIES 50
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
EMB SRM HJT LCR Adjusting HJT & LCR
Investments, Investments, Holdings, Holdings, & Elim. Holdings
ASSETS Inc. L.P. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service and other property $0 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total property, plant and eqpt. - net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 1,109 3 2 2 0 1,116
Customer receivables - net 0 0 0 0 0 0
Materials, supplies & fossil fuel inventory 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 26,133 35 35 35 (70) 26,168
Total current assets 27,242 38 37 37 (70) 27,284
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 339,059 366,109 37 366,074 (732,220) 339,059
Other 0 0 0 0 0 0
Total other assets 339,059 366,109 37 366,074 (732,220) 339,059
TOTAL ASSETS $366,301 $366,147 $74 $366,111 ($732,290) $366,343
CAPITALIZATION
Common shareholders' equity $366,109 $366,112 $40 $366,078 ($732,220) $366,119
Pref. stock without sinking fund requirements 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 366,109 366,112 40 366,078 (732,220) 366,119
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of long-term debt & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 192 0 0 0 0 192
Other 0 35 34 33 (70) 32
Total current liabilities 192 35 34 33 (70) 224
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Deferred regulatory credit - income taxes 0 0 0 0 0 0
Unamortized investment tax credits 0 0 0 0 0 0
Storm and property insurance reserve 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total other liabilities & deferred credits 0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $366,301 $366,147 $74 $366,111 ($732,290) $366,343
</TABLE>
<PAGE>
<TABLE>
HJT HOLDINGS & LCR HOLDINGS AND SUBSIDIARIES 51
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1997
Thousands of Dollars
<CAPTION>
EMB SRM HJT LCR Adjusting HJT & LCR
Investments, Investments, Holdings, Holdings, & Elim. Holdings
INCOME STATEMENT Inc. L.P. Inc. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 7 2 3 3 0 15
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0 0
Total operating expenses 7 2 3 3 0 15
OPERATING INCOME (7) (2) (3) (3) 0 (15)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 33,733 21,925 2 21,920 (43,842) 33,738
Total other deductions - net 33,733 21,925 2 21,920 (43,842) 33,738
INCOME BEFORE INCOME TAXES 33,726 21,923 (1) 21,917 (43,842) 33,723
INCOME TAXES 11,806 0 (1) (2) 0 11,803
NET INCOME (LOSS) 21,920 21,923 0 21,919 (43,842) 21,920
RETAINED EARNINGS (DEFICIT) AT BEG. OF YEAR 768 768 768 0 (1,536) 768
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RETAINED EARNINGS (DEFICIT) AT END OF YEAR $22,688 $22,691 $768 $21,919 ($45,378) $22,688
</TABLE>
<PAGE>
FPL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATING FINANCIAL STATEMENTS
1. Entities for which Separate Financial Statements are not
Presented
The following subsidiaries of the Claimant have had no
financial activity during the year. Accordingly, financial
information for these companies is not provided.
- Cable GP, Inc.
- Cable LP II Inc.
- Doswell-Hanover, Inc.
- Doswell I, Inc.
- Eastern Pacific Enterprises, Inc.
- ESI Altamont Acquisitions, Inc.
- ESI Australia II, Inc.
- ESI Calistoga Power Services, Inc.
- ESI Chesapeake Power, Inc.
- ESI Devco Northeast, Inc.
- ESI DLP-LP Holdings, Inc.
- ESI Dominican Republic, Inc.
- ESI Doswell GP II Holdings, Inc.
- ESI Doswell LP Holdings, Inc.
- ESI Doswell Power Services, Inc.
- ESI Mojave 16/17/18 LLC
- ESI Mojave LLC
- ESI New Jersey Energy GP, Inc.
- ESI Northeast Energy Acquisition Funding, Inc.
- ESI Northeast Energy Funding, Inc.
- ESI Northeast Energy GP, Inc.
- ESI Northeast Energy LP, Inc.
- ESI Panama, Inc.
- ESI Philippines, Inc.
- ESI Prairie Winds GP, L.L.C.
- ESI Prairie Winds LP, L.L.C.
- FPL Group Argentina, Inc.
- FPL Group Holdings 1, Inc.
- FPL Group Holdings 2, Inc.
- FPL Group International Brazil (Cayman) I, Inc.
- FPL Group International Brazil (Cayman) II, Inc.
- FPL Group International South America, Inc.
- FPL Group International South America II, Inc.
- Hyperion Investments LLC
- MBR Services, Inc.
- Mayberry Investments, Inc.
- Silverado Geothermal Resources, Inc.
- TWC Sixty-Three Inc.
Separate financial statements are not maintained for the
following subsidiaries due to immateriality.
- Colonial Penn Capital Holdings, Inc.
- Praxis Group, Inc.
- Qualtec Professional Services, Inc.
- Alpha Joshua (Prime), Inc.
- Alpha Mariah (Prime), Inc.
- Beta Mariah (Prime), Inc.
- Beta Willow (Prime), Inc.
- FPL Energy Services II, Inc.
Separate financial statements are not presented for Bay
Loan and Investment Bank since it is classified as
discontinued operations.
2. Not-for-Profit Corporations
FPL Group Foundation (the Foundation) is a private
foundation organized as a not for profit corporation to
provide for the centralized evaluation and coordination of
charitable activities of FPL Group, Inc. and its subsidiaries.
FPL Historical Museum (the Museum) is a not-for-profit
corporation formed to collect and preserve tangible objects
that help interpret or describe the history of Florida Power
& Light Company. The Foundation and the Museum
operate independently of FPL Group, Inc., and
consolidation of their not-for-profit financial statements with
FPL Group, Inc.'s financial statements is not appropriate.
Total assets of the Foundation and the Museum were
approximately $5.3 million and $.4 million, respectively, at
December 31, 1997.
3. Dissolutions of Subsidiaries
Agriculture Management Services Company, Inc., Avon
Citrus Nursery, Inc., ESI Jonesboro LP, Inc., Palmetto
Insurance Company, Limited, ESI Uri, Inc. and ESI West
Enfield LP, Inc. were dissolved in 1997.
<PAGE>
Claimant has caused this statement to be duly executed on its behalf by
its authorized officer this 27th day of February, 1998.
FPL Group, Inc.
By: K. MICHAEL DAVIS
K. Michael Davis
Controller and Chief Accounting Officer
(Principal Financial and Accounting Officer)
(Corporate Seal)
Attest:
D. P. COYLE
D. P. Coyle, General Counsel and Secretary
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
K. Michael Davis
Controller and Chief Accounting Officer
FPL Group, Inc.
700 Universe Boulevard
Juno Beach, FL 33408<PAGE>
EXHIBIT B
The Financial Data Schedule is included as Exhibit 27 at the conclusion
of this document.<PAGE>
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
FPL Group, Inc. (Claimant)
* FPL Group Capital Inc
** ESI Energy, Inc.
*** ESI Doswell, Inc.
*** ESI LP, Inc.
*** ESI Doswell GP, Inc.
*** ESI Doswell GP II Holdings, Inc.
*** ESI Doswell LP Holdings, Inc.
FPL Group, Inc. (Claimant)
* FPL Group Capital Inc
** FPL Group International, Inc.
*** FPL Mamonal, Inc.
*** FPL International Investment Company
FPL Group, Inc. (Claimant)
* FPL Group Capital Inc
** FPL Group International, Inc.
*** FPL Termovalle, Inc.
*** FPL International Holdings, Inc.
At December 31, 1997, ESI Doswell, Inc., ESI LP, Inc., ESI Doswell GP,
Inc., ESI Doswell GP II Holdings, Inc. and ESI Doswell LP Holdings, Inc.
each owned a partnership interest in Doswell Limited Partnership, an
EWG. These interests in the aggregate equal 100%.
At December 31, 1997, FPL Mamonal, Inc. and FPL International
Investment Company, each, indirectly, owned a limited partnership
interest in InterAmerican Energy Leasing Company. These interests in
the aggregate will average approximately 28% over the life of the
partnership. FPL Mamonal, Inc. and FPL International Investment
Company are wholly-owned subsidiaries of FPL Group International, Inc.,
which is a wholly-owned subsidiary of FPL Group Capital Inc, a
wholly-owned subsidiary of Claimant.
At December 31, 1997, FPL Termovalle, Inc. and FPL International
Holdings, Inc., each, indirectly, owned a limited partnership interest in
Termovalle. These interests in the aggregate will average approximately
36% over the life of the partnership. FPL Termovalle, Inc. and FPL
International Holdings, Inc. are wholly-owned subsidiaries of FPL Group
Capital Inc, a wholly-owned subsidiary of Claimant.
<PAGE>
APPENDIX 1
SUBSIDIARIES OF FPL GROUP, INC.
December 31, 1997
<TABLE>
<CAPTION>
Jurisdic-
tion of
Incor-
Name poration Location Nature of Business
- ------------------------------ -------- ------------ -------------------------------------------
<S> <C> <C> <C>
FLORIDA POWER & LIGHT COMPANY Florida Juno Beach Operates as an electric utility company.
*FPL Enersys, Inc. Florida Miami Holds the stock of a subsidiary which was
formed to provide ongoing services to
implement energy programs.
**FPL Energy Services, Inc. Florida Miami Formed to provide ongoing services to implement
energy programs.
**FPL Energy Services II, Inc. Florida Miami Develops energy management systems for
commercial, industrial and institutional
companies.
*KPB Financial Corp. Delaware Wilmington Manages financial assets.
*Land Resources Investment Co. Florida Juno Beach Holds real property used or to be used by FPL.
FPL GROUP CAPITAL INC Florida Juno Beach Holds the stock of and provides the funding for
the operating companies other than FPL.
*Alandco Inc. Florida North Palm Beach Holds real estate investments.
**Alandco I, Inc. Florida North Palm Beach Holds real estate investments.
**Alandco/Cascade, Inc. Florida North Palm Beach Holds real estate investments.
**TWC Sixty-Three, Inc. Florida North Palm Beach Inactive.
*ESI Energy, Inc. Florida North Palm Beach Holds the stock of subsidiaries participating
in energy production projects and leveraged
leases.
**Alpha Joshua (Prime), Inc. California San Francisco Owns a general partnership interest in a
transmission line.
**Alpha Mariah (Prime), Inc. California North Palm Beach Owns a general partnership interest in a
transmission line.
**Beta Mariah (Prime), Inc. California North Palm Beach Owns a general partnership interest in a
transmission line.
**Beta Willow (Prime), Inc. California San Francisco Owns a general partnership interest in a
transmission line.
**ESI Altamont Acquisitions, Florida North Palm Beach Formed to bid for Northern States Power Three.
Inc.
**ESI Antilles, Inc. Florida North Palm Beach Inactive.
**ESI Antilles LP, Inc. Florida North Palm Beach Inactive.
**ESI Australia II, Inc. Delaware North Palm Beach Formed to develop waste coal energy projects.
**ESI Bay Area, Inc. Florida North Palm Beach Participates in a wind power project.
**ESI Bay Area GP, Inc. Florida North Palm Beach General partner for wind power project.
**ESI Brady, Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI California Holdings, Inc. California North Palm Beach Holds the stock of subsidiaries participating
in energy projects.
***CH Ormesa, Inc. Florida North Palm Beach Participates in a geothermal project.
***CH Ormesa LP, Inc. Florida North Palm Beach Participates in a geothermal project.
***CH POSDEF, Inc. Florida North Palm Beach Participates in a coal project.
***CH POSDEF LP, Inc. Florida North Palm Beach Participates in a coal project.
***Eastern Pacific California San Diego Holding company.
Enterprises, Inc.
***ESI Sky River, Inc. Florida North Palm Beach Participates in a wind power project.
**ESI Calistoga GP, Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Calistoga LP, Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Cherokee GP, Inc. Florida North Palm Beach Participates in a gas-fired co-generation
project.
**ESI Cherokee LP, Inc. Florida North Palm Beach Participates in a gas-fired co-generation
project.
**ESI Cherokee Holdings, Inc. Florida North Palm Beach Holds the stock of subsidiaries participating
in gas-fired co-generation projects.
***Cherokee County Delaware North Palm Beach Participates in a gas-fired co-generation
Cogeneration Corp. project.
***ESI Cherokee MGP, Inc. Florida North Palm Beach Participates in a gas-fired co-generation
project.
**ESI Chesapeake Power, Inc. Florida North Palm Beach Formed to acquire interest in a power
plant.
**ESI Devco Northeast, Inc. Florida North Palm Beach Formed to purchase PDC assets.
**ESI Dixie Valley, Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Dixie Valley LP,Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Dominican Republic, Inc. Florida North Palm Beach Inactive.
**ESI Doswell, Inc. Florida North Palm Beach Participates in a natural gas project.
**ESI Doswell GP, Inc. Florida North Palm Beach Participates in combined cycle gas-fired
electric generation.
***Doswell-Hanover, Inc. Florida North Palm Beach Participates in combined cycle, gas-fired
electric generation.
****Doswell I, Inc. Florida North Palm Beach General partner of Doswell Limited
Partnership.
**ESI Doswell GP II Florida North Palm Beach Holding company for stock pledge.
Holdings, Inc.
***ESI Doswell GP II, Inc. Florida North Palm Beach Participates in combined cycle gas-fired
electric generation.
**ESI Doswell LP Holdings, Inc. Florida North Palm Beach Holding company for stock pledge.
***ESI DLP-LP Holdings, Inc. Florida North Palm Beach Participates in combined cycle gas-fired
electric generation.
**ESI Double "C", Inc. Florida North Palm Beach Participates in a natural gas project.
**ESI Ebensburg, Inc. Florida North Palm Beach Participates in a waste-to-energy project.
**ESI Geothermal Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Geothermal II, Inc. Florida North Palm Beach Participates in a geothermal project.
**ESI Jonesboro, Inc. Florida North Palm Beach Inactive.
**ESI Kern Front, Inc. Florida North Palm Beach Participates in a natural gas project.
**ESI Lake Benton Holdings, Inc. Florida North Palm Beach Holding company for ESI Lake Benton LLC
which is our member of the project
entity for NSP Phase II.
**ESI LP, Inc. Florida North Palm Beach Formed to invest in partnerships.
**ESI Mojave, Inc. Florida North Palm Beach Member of a Limited Liability Company
that participates in the Mojave 16, 17,
18 Project.
**ESI Mojave LLC Delaware North Palm Beach Owns 50% interest in a wind power project.
***ESI Mojave 16/17/18 LLC Delaware North Palm Beach Operates a wind power project.
**ESI Montgomery County, Inc. Florida North Palm Beach Participates in a waste-to-energy project.
**ESI Multitrade LP, Inc. Florida North Palm Beach Owns a limited partner ownership interest in a
wood-burning electric generating project.
**ESI New Jersey Energy GP, Inc. Florida North Palm Beach Formed to acquire generation assets.
**ESI Northeast Energy Florida North Palm Beach Formed to acquire generation assets.
Acquisition Funding, Inc.
**ESI Northeast Energy Florida North Palm Beach Formed to acquire generation assets.
Funding, Inc.
**ESI Northeast Energy GP, Inc. Florida North Palm Beach Formed to acquire generation assets.
**ESI Northeast Energy LP, Inc. Florida North Palm Beach Formed to acquire generation assets.
**ESI Operating Services, Inc. Florida North Palm Beach Provides operating and maintenance services and
fuel procurement for projects.
***ESI Brady Power Florida North Palm Beach Provides operating and maintenance services for
Services, Inc. a power project.
***ESI Calistoga Power Florida North Palm Beach Operating and maintenance company for a
Services, Inc. geothermal project.
***ESI Doswell Power Florida North Palm Beach Provides operating and maintenance services for
Services, Inc. a power project.
***ESI Virginia Power Florida North Palm Beach Participates in operation and maintenance
Services, Inc. services at projects.
**ESI Ormesa Holdings, Inc. Florida North Palm Beach Formed to acquire interest in Ormesa I.
**ESI Panama, Inc. Florida North Palm Beach Participates in thermal power project.
**ESI Philippines, Inc. Florida North Palm Beach Formed to pursue energy-related business
opportunities in the Philippines.
**ESI Pittsylvania, Inc. Florida North Palm Beach Participates in a wood-burning electric
generating project.
**ESI Prairie Winds GP, L.L.C. Delaware North Palm Beach Inactive.
**ESI Prairie Winds LP, L.L.C. Delaware North Palm Beach Inactive.
**ESI San Emidio, Inc. Florida North Palm Beach Participates in the development of a geothermal
project.
**ESI SEMASS Corp. LP, Inc. Florida North Palm Beach Inactive.
**ESI Sierra, Inc. Florida North Palm Beach Participates in a natural gas project.
**ESI Silverado Delaware, L.L.C. Delaware North Palm Beach Holding company for a steam project.
***ESI Silverado Holdings, Delaware North Palm Beach Holding company for a steam project.
L.L.C.
****Silverado Geothermal California North Palm Beach Holds a steam sales agreement with Calistoga
Resources, Inc. Geothermal Partners L.P.
**ESI Steamboat, Inc. Florida North Palm Beach Formed to service a loan.
**ESI Vansycle GP, Inc. Florida North Palm Beach Participates in a wind power project.
**ESI Vansycle LP, Inc. Florida North Palm Beach Participates in a wind power project.
**ESI Victory, Inc. Florida North Palm Beach Participates in a wind power project.
**ESI West Enfield, Inc. Florida North Palm Beach Inactive.
**ESI WTE Development, Inc. Florida North Palm Beach Inactive.
**FPL Investments Inc Florida North Palm Beach Manages a leveraged lease portfolio.
**Harper Lake Acquisitions, Inc. Florida North Palm Beach Formed to acquire assets at Harper Lake.
**Harper Lake Holdings, Inc. Florida North Palm Beach Formed to acquire senior debt of SEGS 8 and
lend to SEGS 8 Investments LLC to acquire
subdebt.
**Harper Lake Operations, Inc. California North Palm Beach Formed to operate a solar electric generating
system.
**Hyperion VIII, Inc. Florida North Palm Beach Participates in a solar electric generating
system.
**Hyperion IX, Inc. Florida North Palm Beach Participates in a solar electric generating
system.
***Hyperion Investments LLC Delaware North Palm Beach Holds the investments of a solar electric
generating project.
**MES Financial Corp. Delaware Wilmington Manages financial assets.
**Northern Cross Investments, Delaware North Palm Beach Holds the stock notes of a solar electric
Inc. generating project.
**Sullivan Street Investments, Delaware North Palm Beach Holds the stock notes of a solar electric
Inc. generating project.
*FPL Group Holdings 1, Inc. Florida Juno Beach Inactive.
*FPL Group Holdings 2, Inc. Florida June Beach Inactive.
*FPL Group International, Inc. Florida Juno Beach Invests in international power projects.
**Crete I Cayman, Inc. Cayman Cayman Islands Invests in a wind power project.
Islands,
B.W.I.
**Crete II Cayman, Inc. Cayman Cayman Islands Invests in a wind power project.
Islands,
B.W.I.
**Crete III Cayman, Inc. Cayman Cayman Islands Invests in a wind power project.
Islands,
B.W.I.
**Faeto Cayman, Inc. Cayman Cayman Islands Invests in a wind power project.
Islands,
B.W.I.
**FPL Group Argentina, Inc. Florida North Palm Beach To invest in international power projects.
**FPL Group International Florida North Palm Beach Invests in a power project.
South America, Inc.
***FPL Group International Cayman Cayman Islands Participates in a power project.
Brazil (Cayman) I, Inc. Islands,
B.W.I.
***FPL Group International Cayman Cayman Islands Participates in a power project.
Brazil (Cayman) II, Inc. Islands,
B.W.I.
**FPL Group International Florida North Palm Beach Participates in a power project.
South America II, Inc.
**FPL International Cayman Cayman Islands Invests in international power projects.
Holdings, Inc. Islands,
B.W.I.
**FPL International Holdings Cayman Cayman Islands Invests in international power projects.
II, Inc. Islands,
B.W.I.
***Owenreagh Cayman Power Cayman Cayman Islands Invests in international power projects.
Partners, LLC Islands,
B.W.I.
**FPL International Investment Cayman Cayman Islands Invests in international power projects.
Company Islands,
B.W.I.
**FPL Mamonal, Inc. Florida North Palm Beach Participates in a power project.
**FPL TermoCandelaria, Inc. Florida North Palm Beach Participates in a power project.
**FPL Termovalle, Inc. Florida North Palm Beach Participates in a power project.
**Karaha Bodas Investment Corp. Cayman Cayman Islands Participates in a geothermal project.
Islands,
B.W.I.
**Monte San Giorgio Cayman, Inc. Cayman Cayman Islands Invests in a wind power project.
Islands,
B.W.I.
**Mynydd Gordu Cayman, Inc. Cayman Cayman Islands Invests in international power projects.
Islands,
B.W.I.
**Owenreagh Cayman, Inc. Cayman Cayman Islands Invests in international power projects.
Islands,
B.W.I.
**Riva-Caleone Cayman, Inc. Cayman Cayman Islands Invests in international power projects.
Islands,
B.W.I.
**San Bartolomeo Cayman, Inc. Cayman Cayman Islands Invests in international power projects.
Islands,
B.W.I.
**Werfa Cayman, Inc. Cayman Cayman Islands Invests in international power projects.
Islands,
B.W.I.
*FPL Holdings Inc Florida Juno Beach Holds certain fixed assets used by FPL Group.
**Colonial Penn Capital Delaware Juno Beach, FL Holds the stock of Bay Loan and Investment Bank.
Holdings, Inc.
***Bay Loan and Investment Rhode Providence Holds commercial and consumer loans and time
Bank Island deposits. Bay Loan was reclassified to
discontinued operations in 1991; therefore
no financial statements are presented.
*HJT Holdings, Inc. Delaware Wilmington Manages intangible assets.
**SRM Investments, L.P. N/A N/A Limited partnership holding intangible assets.
***EMB Investments, Inc. Delaware Wilmington Manages intangible assets.
*LCR Holdings, Inc. Delaware Wilmington Manages intangible assets.
**SRM Investments, L.P. N/A N/A Limited partnership holding intangible assets.
***EMB Investments, Inc. Delaware Wilmington Manages intangible assets.
*MBR Services, Inc. Florida Juno Beach Performs out-sourced meter reading, billing and
remittance processing services to other
utilities.
*Palms Insurance Company, Cayman Cayman Islands Operates as a captive insurance company
Limited Islands, primarily engaged in reinsuring liability
B.W.I. insurance coverage for FPL Group, Inc. and its
subsidiaries.
*Praxis Group, Inc. Delaware Miami, FL Holds certain immaterial assets and
liabilities, but no longer actively in business.
*QualTec Professional Florida Miami, FL Holds certain immaterial assets and
Services, Inc. liabilities but no longer actively in business.
*Telesat Cablevision, Inc. Florida Miami, FL Owns investments in cable TV partnerships
and joint ventures.
**Mayberry Investments, Inc. Delaware Wilmington Manages intangible assets.
**Telesat Cablevision of Florida Miami, FL Holds the stock of subsidiaries involved
South Florida, Inc. in cable partnerships.
***Cable GP, Inc. Florida Miami, FL Owns a general partnership interest in a
cable television joint venture.
***Cable LP I, Inc. Florida Miami, FL Owns limited partnership interests in
cable television joint ventures.
***Cable LP II, Inc. Florida Miami, FL Inactive.
***Cable LP III, Inc. Florida Miami, FL Owns a limited partnership interest in a
cable television joint venture.
***Cable LP (Pasco), Inc. Florida Miami, FL Owns a limited partnership interest in a
cable television joint venture.
*Turner Foods Corporation Florida Punta Gorda Holds the stock of agriculture subsidiaries
in Florida.
**AMS Realty, Inc. Florida Punta Gorda Operates an agricultural real estate brokerage
business.
**Turner Corporation Florida Immokalee Operates citrus groves.
CAS INVESTMENTS, INC. Delaware Wilmington Owns investment securities.
/TABLE
<PAGE>
APPENDIX 2
PROPERTIES OF FLORIDA POWER & LIGHT COMPANY (FPL) AND
CLAIMANT
Generating Facilities. As of December 31, 1997, FPL had the
following generating facilities:
<TABLE>
<CAPTION>
No. of Net Warm Weather
Facility Location Units Fuel Peaking Capability (mw)
- ------------------------------------------ -------------------- ------ ------- -----------------------
<S> <C> <C> <C> <C>
STEAM TURBINES
Cape Canaveral ......................... Cocoa, FL 2 Oil/Gas 810
Cutler ................................. Miami, FL 2 Gas 215
Fort Myers ............................. Fort Myers, FL 2 Oil 544
Manatee ................................ Parrish, FL 2 Oil 1,638
Martin ................................. Indiantown, FL 2 Oil/Gas 1,630
Port Everglades ........................ Port Everglades, FL 4 Oil/Gas 1,227
Riviera ................................ Riviera Beach, FL 2 Oil/Gas 580
St. Johns River Power Park ............. Jacksonville, FL 2 Coal/Petroleum Coke 260(1)
St. Lucie .............................. Hutchinson Island, FL 2 Nuclear 1,553(2)
Sanford ................................ Lake Monroe, FL 3 Oil/Gas 926
Scherer ................................ Monroe County, GA 1 Coal 667(3)
Turkey Point ........................... Florida City, FL 2 Oil/Gas 810
2 Nuclear 1,386
COMBINED-CYCLE
Lauderdale ............................. Dania, FL 2 Gas/Oil 860
Martin ................................. Indiantown, FL 2 Gas 860
Putnam ................................. Palatka, FL 2 Gas/Oil 498
COMBUSTION TURBINES
Fort Myers ............................. Fort Myers, FL 12 Oil 626
Lauderdale ............................. Dania, FL 24 Oil/Gas 876
Port Everglades ........................ Port Everglades, FL 12 Oil/Gas 438
DIESEL UNITS
Turkey Point ........................... Florida City, FL 5 Oil 12
TOTAL .................................... 16,416
(1) Represents FPL's 20% individual ownership interest in St. Johns River Power Park Units Nos. 1 and 2, which are jointly
owned with the Jacksonville Electric Authority.
(2) Excludes Orlando Utilities Commission's and the Florida Municipal Power Agency's combined share of approximately 15%
of St. Lucie Unit No. 2.
(3) Represents FPL's approximately 76% ownership of Scherer Unit No. 4, which is jointly owned with the Jacksonville Electric
Authority.
</TABLE>
ESI Energy, Inc. has wholly-owned generating facilities totalling 830
mw, the largest being a 665 mw gas-fired combined-cycle plant in
Virginia. The remaining facilities include solar- and wind-power
generators located in California and Northern Ireland.
Transmission and Distribution. FPL owns and operates 478 substations
with a total capacity of 104,493,440 kva. Electric transmission and
distribution lines owned and in service as of December 31, 1997 are
as follows:
<TABLE>
<CAPTION>
Overhead Lines Trench and Submarine
Nominal Voltage Pole Miles Cable Miles
- ------------------------------------------------------------------- -------------- --------------------
<S> <C> <C>
500 kv ............................................................ 1,107(a) -
230 kv ............................................................ 2,196 31
138 kv ............................................................ 1,405 48
115 kv ............................................................ 672 -
69 kv ............................................................ 166 11
Less than 69 kv ................................................... 39,168 20,086
Total ............................................................. 44,714 20,176
(a) Includes approximately 80 miles owned jointly with the Jacksonville Electric Authority.
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from FPL Group's consolidated balance sheet as of December 31, 1997
and consolidated statement of income for the twelve months ended December 31, 1997 and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<NAME> FPL Group, Inc.
<CIK> 0000753308
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> DEC-31-1997
<PERIOD-TYPE> 12-MOS
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> $12,449,032
<TOTAL-OPERATING-REVENUES> $6,369,013
<NET-INCOME> $617,502
</TABLE>
|
|