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: April 7, 1999
Exact name of Registrant as specified in its IRS Employer
Commission charter, address of principal executive Identification
File Number offices and Registrant's phone number Number
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1-8841 FPL GROUP, INC. 59-2449419
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000
State or other jurisdiction of incorporation: Florida
Item 5. Other Events
Reference is made to Item 1. Business - Other FPL Group Operations, Item 3.
Legal Proceedings and Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations - Liquidity and Capital
Resources in the 1998 Form 10-K for FPL Group, Inc.
On April 7, 1999, FPL Energy, Inc. (FPL Energy), a subsidiary of FPL Group,
Inc. (FPL Group), completed the purchase of Central Maine Power Company's
(CMP) non-nuclear generating assets. The transaction was closed following
the U.S. District Court for the Southern District of New York's rejection in
March 1999 of FPL Energy's request for a declaratory judgment that CMP could
not meet essential terms of the purchase agreement between the two companies.
The request for declaratory judgment was filed because FPL Energy believed
that recent Federal Energy Regulatory Commission (FERC) rulings regarding
transmission constituted a material adverse effect under the purchase
agreement and that FPL Energy should not be bound to complete the
transaction.
The rulings by the FERC, as well as the announcement of new entrants into the
market and changes in fuel prices, result in an impairment in the value of
certain assets purchased from CMP. FPL Group will record an impairment loss
in the range of $160 million to $180 million ($95 million to $107 million
after taxes) in the second quarter of 1999, which will reduce 1999 earnings
per share between $0.56 and $0.63.
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: April 16, 1999 K. MICHAEL DAVIS
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K. Michael Davis
Controller and Chief Accounting Officer of FPL Group, Inc.
