UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of earliest event reported: November 16, 1998
FPL GROUP, INC.
FLORIDA 1-8841 59-2449419
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction Identification No.)
of incorporation)
700 Universe Boulevard
Juno Beach, Florida 33408
(Address of principal executive office)
(Zip Code)
(561) 694-4000
Resistrant's telephone number, including area code
Item 5. Other Events
On November 16, 1998, FPL Energy Maine, Inc., (FPL Energy Maine) an indirect
wholly-owned subsidiary of FPL Group, Inc. (FPL Group) filed a civil action in
the United States District Court for the Southern District of New York seeking
a declaratory judgment that Central Maine Power Company (CMP) cannot meet
essential terms of the agreement with FPL Energy Maine regarding the purchase
of CMP's non-nuclear generating assets, which was expected to close in the
first quarter of 1999. CMP has indicated that it will oppose FPL Energy
Maine's request for relief from its obligation. Based on recent Federal
Energy Regulatory Commission (FERC) rulings on transmission access, as well as
other issues, FPL Group believes that CMP cannot comply with the conditions in
the purchase contract and FPL Energy Maine should not be bound to complete the
transaction.
FPL Energy Maine asserts that the recent FERC rulings: (1) constitute a
material adverse effect under the purchase agreement and substantially lessen
the value of the CMP generating assets; and (2) preclude CMP from obtaining
all federal, state, and local consents and approvals required for the
ownership, operation, and maintenance of the generating assets in a manner
substantially consistent with CMP's historical ownership, operation, and
maintenance thereof, as required by the purchase agreement. FPL Energy Maine
also asserts that the recent FERC rulings limit the ability of the prospective
buyer to get power from the CMP generating assets to market unconstrained by
transmission limitations caused by new generators being added to the New
England Power Pool system, and therefore, based on the doctrine of frustration
of purpose, FPL Energy Maine is excused from further obligation or liability
under the purchase agreement to consummate the purchase of CMP's generating
assets.
The recent FERC rulings are subject to appeal.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FPL GROUP, INC.
(Registrant)
Date: November 19, 1998 K. MICHAEL DAVIS
K. Michael Davis
Controller and Chief Accounting Officer of FPL Group, Inc.
