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Previous: ELECTRONIC SYSTEMS TECHNOLOGY INC, 8-K, 1999-03-02 |
Next: LEXINGTON STRATEGIC SILVER FUND INC, 485APOS, 1999-03-02 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
File No. 69-302
Statement by Holding Company Claiming
Exemption under Rule U-3A-2 from the
Provisions of the Public Utility Holding
Company Act of 1935
FPL GROUP, INC.
To Be Filed Annually Prior to March 1
Page 1 of 66
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:
1. FPL Group, Inc. (FPL Group), the claimant, is a Florida corporation,
organized in 1984, with its principal executive offices at 700 Universe
Boulevard, Juno Beach, Florida 33408. FPL Group's business is the holding of
all the outstanding capital stock of its subsidiaries. For information
regarding FPL Group's subsidiaries as of December 31, 1998, see Appendix 1.
2. The claimant's only subsidiary public utility company is Florida Power
& Light (FPL), a Florida corporation, which is an electric utility. As of
December 31, 1998, FPL and the claimant had the following generating
facilities:
<TABLE><CAPTION>
No. of Net Warm Weather
Facility Location Units Fuel Peaking Capability (mw)
<S> <C> <C> <C> <C>
FPL:
STEAM TURBINES
Cape Canaveral ......................... Cocoa, FL 2 Oil/Gas 800
Cutler ................................. Miami, FL 2 Gas 215
Fort Myers ............................. Fort Myers, FL 2 Oil 544
Manatee ................................ Parrish, FL 2 Oil 1,590
Martin ................................. Indiantown, FL 2 Oil/Gas 1,630
Port Everglades ........................ Port Everglades, FL 4 Oil/Gas 1,241
Riviera ................................ Riviera Beach, FL 2 Oil/Gas 580
St. Johns River Power Park ............. Jacksonville, FL 2 Coal/Petroleum Coke 260(a)
St. Lucie .............................. Hutchinson Island, FL 2 Nuclear 1,553(b)
Sanford ................................ Lake Monroe, FL 3 Oil/Gas 933
Scherer ................................ Monroe County, GA 1 Coal 667(c)
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 875
Putnam ................................. Palatka, FL 2 Gas/Oil 498
COMBUSTION TURBINES
Fort Myers ............................. Fort Myers, FL 12 Oil 612
Lauderdale ............................. Dania, FL 24 Oil/Gas 840
Port Everglades ........................ Port Everglades, FL 12 Oil/Gas 420
DIESEL UNITS
Turkey Point ........................... Florida City, FL 5 Oil 12
Total FPL............................. 16,326
Total FPL Energy, Inc. ................... Various(d) N/M (e) 1,878(f)
TOTAL 18,204
____________________
(a) Represents FPL's 20% individual ownership interest in St. John's River Power Park Units Nos. 1 and 2, which are
jointly owned with the Jacksonville Electric Authority (JEA).
(b) Excludes Orlando Utilities Commission's and the Florida Municipal Power Agency's combined share of approximately
15% of St. Lucie Unit No. 2.
(c) Represents FPL's approximately 76% ownership of Scherer Unit No. 4, which is jointly owned with the JEA.
(d) Approximately 697 mw in Virginia, 629 mw in California, 150 mw in New Jersey, 150 mw in Massachusetts, 150 mw in
four other states and 102 mw abroad.
(e) Approximately 61% gas, 18% wind, 8% solar, 6% geothermal, 5% coal and 2% other.
(f) Represents FPL Energy, Inc.'s (FPL Energy) ownership interest and excludes projects under construction.
</TABLE>
N/M - Not meaningful
Transmission and Distribution. FPL owns and operates 480 substations with a
total capacity of 105,535,440 kva. Electric transmission and distribution
lines owned and in service as of December 31, 1998 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 ......................................................... 2,198 31
138 kv ......................................................... 1,426 48
115 kv ......................................................... 671 -
69 kv ......................................................... 166 11
Less than 69 kv ................................................ 39,510 20,696
Total .......................................................... 45,078 20,786
(a) Includes approximately 80 miles owned jointly with the JEA.
</TABLE>
3.
<TABLE><CAPTION>
Year ended December 31, 1998
FPL Group FPL
--------- ------------------
<S> <C> <C>
Number of kwh of electric energy - 89,361,670,778 kwh
sold (at retail or wholesale) or
Mcf. of natural or manufactured gas distributed at retail.
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.
Number of kwh of electric energy and Mcf. of natural or - 1,636,525,000 kwh
manufactured gas sold at wholesale outside the state in
which each such company is organized, or at the state line.
Number of kwh of electric energy and Mcf. of natural or - 6,186,959,000 kwh
manufactured gas purchased outside the state in which
each such company is organized, or at the state line.
</TABLE>
4. FPL Group has the following interests in EWG's:
Doswell Limited Partnership (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. At December 31, 1998, 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%. ESI
Energy, Inc. (ESI) is the parent of those entities that have an
interest in Doswell. ESI is a wholly-owned subsidiary of FPL Energy,
which is wholly-owned by FPL Group Capital Inc, a wholly-owned
subsidiary of FPL Group. Doswell's equity balance at December 31,
1998 was $92.4 million. FPL Group Capital has outstanding letters of
credit in the amount of $10 million guaranteeing Doswell's debt service
payments.
Capitalization and earnings during the reporting period were:
Total Equity $92,431,884
Total Debt Obligations $315,500,000
Net Income $11,260,409
FPL Group's Equity in Net Income $11,260,409
ESI Vansycle Partners, LP (Vansycle), the business address of which is
700 Universe Boulevard, Juno Beach, FL 33408. The facility is a 24.9
megawatt wind energy project located in Umatilla County, eastern
Oregon, close to the Oregon-Washington border, which sells 100% of its
power to Portland General Electric Company. At December 31, 1998, ESI
Vansycle GP, Inc. (ESI GP) and ESI Vansycle LP, Inc. (ESI LP) own 1%
and 99%, respectively, of Vansycle. ESI GP and ESI LP are wholly-owned
subsidiaries of ESI Energy, Inc. (ESI). ESI is a wholly-owned
subsidiary of FPL Energy, which is wholly-owned by FPL Group Capital
Inc, a wholly-owned subsidiary of FPL Group. Vansycle's equity balance
at December 31, 1998 was $24.72 million. FPL Group Capital and
Vansycle have an outstanding letter of credit of $3.1 million
guaranteeing Vansycle's turbine supply and installation contract
payments.
Capitalization and earnings during the reporting period were:
Total Equity $24,722,770
Total Debt Obligations $0
Net Income $520,689
FPL Group's Equity in Net Income $520,689
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 the claimant and its subsidiary companies as
of the close of such calendar year.
Company Pages
FPL Group, Inc. and Subsidiaries 5-6
Florida Power & Light Company and Subsidiaries 7-8
FPL Group Capital Inc and Subsidiaries 9-12
Alandco Inc. and Subsidiaries 13-14
FPL Energy, Inc. and Subsidiaries 15-16
ESI Energy, Inc. and Subsidiaries 17-40
FPL Group International, Inc. and Subsidiaries 41-48
Telesat Cablevision, Inc. and Subsidiaries 49-52
HJT Holdings, Inc., LCR Holdings, Inc. and Subsidiaries 53-54
Notes to Consolidating Financial Statements 55-56
<TABLE>
FPL GROUP, INC. AND SUBSIDIARIES 5
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars Florida
<CAPTION> Power FPL Group Adjusting
FPL & Light Capital CAS & FPL Group,
Group, Company Inc Investments, Elim. Inc.
ASSETS Inc. Consolidated Consolidated Inc. Entries Consolidated
---------- ------------ ------------ ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $0 $17,164,398 $427,361 $0 $0 $17,591,759
Nuclear fuel under capital lease 0 146,273 0 0 0 146,273
Construction work in progress 0 158,938 55,081 0 0 214,019
Less accumulated depr. & amort. 0 (9,316,662) (80,608) 0 0 (9,397,270)
Total prop., plant and eqpt.-net 0 8,152,947 401,834 0 0 8,554,781
CURRENT ASSETS
Cash and cash equivalents 5,787 151,579 29,584 0 1 186,951
Customer receivables - net 0 520,773 38,315 0 0 559,088
Mat'ls., supplies & fossil fuel inv. 0 239,390 42,551 0 0 281,941
Deferred clause expenses 0 82,148 0 0 0 82,148
Other 2,700 121,676 206,878 0 (175,333) 155,921
Total current assets 8,487 1,115,566 317,328 0 (175,332) 1,266,049
OTHER ASSETS:
Special use funds of FPL 0 1,205,647 0 0 0 1,205,647
Other investments 5,555,290 2,957 720,222 0 (5,887,461) 391,008
Other 87,946 271,342 322,677 0 (70,637) 611,328
Total other assets 5,643,236 1,479,946 1,042,899 0 (5,958,098) 2,207,983
TOTAL ASSETS $5,651,723 $10,748,459 $1,762,061 $0 ($6,133,430) $12,028,813
CAPITALIZATION
Common shareholders' equity $5,125,725 $4,803,494 $748,964 $0 ($5,552,458) $5,125,725
Pref. stk. w/o sinking fund require. 0 226,250 0 0 0 226,250
Long-term debt 0 2,191,002 156,133 0 0 2,347,135
Total capitalization 5,125,725 7,220,746 905,097 0 (5,552,458) 7,699,110
CURRENT LIABILITIES
Short-term debt 0 0 110,000 0 0 110,000
Cur. matur. of ltd. & pref. stock 0 230,000 128,853 0 0 358,853
Accounts payable 0 321,164 17,272 0 1 338,437
Customers' deposits 0 281,746 52 0 0 281,798
Accrued interest and taxes (5,634) 198,006 1,732 0 (3,068) 191,036
Deferred clause revenue 0 88,705 0 0 1 88,706
Other 482,889 231,800 52,235 0 (495,122) 271,802
Total current liabilities 477,255 1,351,421 310,144 0 (498,188) 1,640,632
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 886,123 451,451 0 (82,782) 1,254,792
Def. regulatory credit - income taxes 0 147,520 0 0 0 147,520
Unamortized investment tax credits 0 205,013 0 0 0 205,013
Storm and property insurance reserve 0 258,588 0 0 0 258,588
Other 48,743 679,048 95,369 0 (2) 823,158
Total other liab. & def. credits 48,743 2,176,292 546,820 0 (82,784) 2,689,071
TOTAL CAPITALIZATION AND LIABILITIES $5,651,723 $10,748,459 $1,762,061 $0 ($6,133,430) $12,028,813
</TABLE>
<TABLE>
FPL GROUP, INC. AND SUBSIDIARIES 6
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars Florida
<CAPTION> Power FPL Group Adjusting
FPL & Light Capital CAS & FPL Group,
Group, Company Inc Investments, Elim. Inc.
INCOME STATEMENT Inc. Consolidated Consolidated Inc. Entries Consolidated
---------- ------------ ------------ ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $6,365,829 $294,740 $0 $0 $6,660,569
OPERATING EXPENSES
Fuel, purchased power & interchange 0 2,175,454 68,624 0 (1) 2,244,077
Other operations and maintenance 0 1,163,115 119,774 170 1 1,283,060
Depreciation & amortization 0 1,249,480 34,839 0 (1) 1,284,318
Taxes other than income taxes 7 595,160 1,957 0 2 597,126
Total operating expenses 7 5,183,209 225,194 170 1 5,408,581
OPERATING INCOME (7) 1,182,620 69,546 (170) (1) 1,251,988
OTHER INCOME (DEDUCTIONS):
Interest charges (32,950) (196,164) (125,993) 0 32,950 (322,157)
Preferred stock dividends - FPL 0 (14,762) 0 0 0 (14,762)
Other-net 689,587 (7,159) 61,395 0 (716,054) 27,769
Total other deductions - net 656,637 (218,085) (64,598) 0 (683,104) (309,150)
INCOME BEFORE INCOME TAXES 656,630 964,535 4,948 (170) (683,105) 942,838
INCOME TAXES (7,834) 349,026 (62,761) (58) 1 278,374
NET INCOME (LOSS) 664,464 615,509 67,709 (112) (683,106) 664,464
RET. EARNINGS (DEF.) AT BEG. OF YEAR 1,517,719 874,989 (878,409) (8,985) 12,405 1,517,719
DEDUCT:
Dividends 334,580 626,010 0 0 (626,010) 334,580
Other 0 0 0 (9,097) 9,097 0
RET. EARNINGS (DEF.) AT END OF YEAR $1,847,603 $864,488 ($810,700) $0 ($53,788) $1,847,603
</TABLE>
<TABLE>
FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES 7
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 FPL
Thousands of Dollars Enersys, Florida
<CAPTION> Florida Land Inc./FPL FPL Adjusting Power
Power Resource Energy Energy KPB & & Light
& Light Investment Services Services, Financial Elim. Company
ASSETS Company Company II, Inc. Inc. Corp. Entries Consolidated
----------- ---------- -------- -------- --------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $17,164,398 $0 $0 $0 $0 $0 $17,164,398
Nuclear fuel under capital lease 146,273 0 0 0 0 0 146,273
Construction work in progress 158,938 0 0 0 0 0 158,938
Less accumulated depr. & amort. (9,316,662) 0 0 0 0 0 (9,316,662)
Total prop., plant and eqpt.-net 8,152,947 0 0 0 0 0 8,152,947
CURRENT ASSETS
Cash and cash equivalents 151,564 0 0 0 15 0 151,579
Customer receivables - net 151,756 0 521 0 368,496 0 520,773
Mat'ls., supplies & fossil fuel inv. 239,390 0 0 0 0 0 239,390
Deferred clause expenses 82,148 0 0 0 0 0 82,148
Other 486,676 0 3,925 0 56,156 (425,081) 121,676
Total current assets 1,111,534 0 4,446 0 424,667 (425,081) 1,115,566
OTHER ASSETS:
Special use funds of FPL 1,204,616 0 0 0 159,654 (158,623) 1,205,647
Other investments 2,262 0 0 0 695 0 2,957
Other 880,355 0 640 0 793 (610,446) 271,342
Total other assets 2,087,233 0 640 0 161,142 (769,069) 1,479,946
TOTAL ASSETS $11,351,714 $0 $5,086 $0 $585,809 ($1,194,150) $10,748,459
CAPITALIZATION
Common shareholders' equity $4,803,494 $0 $1,017 $0 $157,606 ($158,623) $4,803,494
Pref. stk. w/o sinking fund require. 226,250 0 0 0 0 0 226,250
Long-term debt 2,191,002 0 0 0 0 0 2,191,002
Total capitalization 7,220,746 0 1,017 0 157,606 (158,623) 7,220,746
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 230,000 0 0 0 426,000 (426,000) 230,000
Accounts payable 321,164 0 0 0 0 0 321,164
Customers' deposits 281,746 0 0 0 0 0 281,746
Accrued interest and taxes 197,831 0 172 0 3 0 198,006
Deferred clause revenue 88,705 0 0 0 0 0 88,705
Other 226,888 0 3,910 0 83 919 231,800
Total current liabilities 1,346,334 0 4,082 0 426,086 (425,081) 1,351,421
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 1,496,581 0 (12) 0 0 (610,446) 886,123
Def. regulatory credit - income taxes 147,520 0 0 0 0 0 147,520
Unamortized investment tax credits 205,013 0 0 0 0 0 205,013
Storm and property insurance reserve 256,472 0 0 0 2,116 0 258,588
Other 679,048 0 (1) 0 1 0 679,048
Total other liab. & def. credits 2,784,634 0 (13) 0 2,117 (610,446) 2,176,292
TOTAL CAPITALIZATION AND LIABILITIES $11,351,714 $0 $5,086 $0 $585,809 ($1,194,150) $10,748,459
</TABLE>
<TABLE>
FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES 8
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1996 FPL
Thousands of Dollars Enersys, Florida
<CAPTION> Florida Land Inc./FPL FPL Adjusting Power
Power Resource Energy Energy KPB & & Light
& Light Investment Services Services, Financial Elim. Company
INCOME STATEMENT Company Company II, Inc. Inc. Corp. Entries Consolidated
---------- ---------- -------- --------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $6,365,568 $6,669 $260 $0 $0 ($6,668) $6,365,829
OPERATING EXPENSES
Fuel, purchased power & interchange 2,175,454 0 0 0 0 0 2,175,454
Other operations and maintenance 1,169,784 0 0 0 0 (6,669) 1,163,115
Depreciation & amortization 1,245,601 3,878 0 0 0 1 1,249,480
Taxes other than income taxes 592,300 2,858 2 0 0 0 595,160
Total operating expenses 5,183,139 6,736 2 0 0 (6,668) 5,183,209
OPERATING INCOME 1,182,429 (67) 258 0 0 0 1,182,620
OTHER INCOME (DEDUCTIONS):
Interest charges (196,164) 0 0 0 (174) 174 (196,164)
Preferred stock dividends - FPL (14,762) 0 0 0 0 0 (14,762)
Other-net (7,338) 0 146 0 7,993 (7,960) (7,159)
Total other deductions - net (218,264) 0 146 0 7,819 (7,786) (218,085)
INCOME BEFORE INCOME TAXES 964,165 (67) 404 0 7,819 (7,786) 964,535
INCOME TAXES 348,656 (67) 160 0 277 0 349,026
NET INCOME (LOSS) 615,509 0 244 0 7,542 (7,786) 615,509
RET. EARNINGS (DEF.) AT BEG. OF YEAR 874,989 0 (2,412) (2,248) 15,775 (11,115) 874,989
DEDUCT:
Dividends 626,010 0 0 0 0 0 626,010
Other 0 0 (2,346) (2,248) 0 4,594 0
RET. EARNINGS (DEF.) AT END OF YEAR $864,488 $0 $178 $0 $23,317 ($23,495) $864,488
</TABLE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 9
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 FPL Energy
Thousands of Dollars Services,
<CAPTION> FPL Inc./ FPL Palms Telesat
Group Alandco FPL Thermal Energy Insurance Cablevision,
Capital Inc. Systems, Inc. Company, Inc.
ASSETS Inc Consolidated Inc. Consolidated Ltd. Consolidated
---------- ------------ ----------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $1,475 $0 $0 $425,581 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 13,349 41,732 0 0
Less accumulated depr. & amort. 0 0 0 (80,336) 0 0
Total prop., plant and eqpt.-net 1,475 0 13,349 386,977 0 0
CURRENT ASSETS
Cash and cash equivalents 10,671 6 0 11,399 4,201 132
Customer receivables - net 0 0 4,745 31,326 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 3,077 39,474 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 117,573 1,042 4,643 90,024 2,969 32,878
Total current assets 128,244 1,048 12,465 172,223 7,170 33,010
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 2,100,332 0 0 364,543 20,676 1
Other 3,886 1,214 1,552 316,169 1,010 0
Total other assets 2,104,218 1,214 1,552 680,712 21,686 1
TOTAL ASSETS $2,233,937 $2,262 $27,366 $1,239,912 $28,856 $33,011
CAPITALIZATION
Common shareholders' equity $748,964 $1,829 $17,887 $716,320 $8,952 ($43,008)
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 128,314 0 0 156,672 0 0
Total capitalization 877,278 1,829 17,887 872,992 8,952 (43,008)
CURRENT LIABILITIES
Short-term debt 110,000 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0 0
Accounts payable 0 430 318 11,484 271 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 2,524 0 23 44 0 0
Deferred clause revenue 0 0 0 0 0 0
Other 1,079,876 3 9,138 57,997 1,369 0
Total current liabilities 1,192,400 433 9,479 69,525 1,640 0
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 112,719 0 0 271,831 0 76,019
Def. 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 51,540 0 0 25,564 18,264 0
Total other liab. & def. credits 164,259 0 0 297,395 18,264 76,019
TOTAL CAPITALIZATION AND LIABILITIES $2,233,937 $2,262 $27,366 $1,239,912 $28,856 $33,011
</TABLE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 10
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998 FPL Energy
Thousands of Dollars Services,
<CAPTION> FPL Inc./ FPL Palms Telesat
Group Alandco FPL Thermal Energy Insurance Cablevision,
Capital Inc. Systems, Inc. Company, Inc.
INCOME STATEMENT Inc Consolidated Inc. Consolidated Ltd. Consolidated
--------- ------------ ----------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $7 $16,236 $234,458 $11,940 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 15,703 52,921 0 0
Other operations and maintenance 8,530 120 13,128 63,282 8,341 95
Depreciation & amortization 65 0 11 30,879 0 0
Taxes other than income taxes 0 40 52 1,866 0 0
Total operating expenses 8,595 160 28,894 148,948 8,341 95
OPERATING INCOME (8,595) (153) (12,658) 85,510 3,599 (95)
OTHER INCOME (DEDUCTIONS):
Interest charges (50,357) 0 0 (78,029) 0 (9)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 38,833 280 50 55,514 0 8,325
Total other deductions - net (11,524) 280 50 (22,515) 0 8,316
INCOME BEFORE INCOME TAXES (20,119) 127 (12,608) 62,995 3,599 8,221
INCOME TAXES (87,828) (26) (4,561) 26,214 1,239 2,593
NET INCOME (LOSS) 67,709 153 (8,047) 36,781 2,360 5,628
RET. EARNINGS (DEF.) AT BEG. OF YEAR (878,409) (6,130) 0 9,040 4,189 (30,663)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($810,700) ($5,977) ($8,047) $45,821 $6,549 ($25,035)
</TABLE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 11
CONSOLIDATING BALANCE SHEET FPL
DECEMBER 31, 1998 Turner Foods Holdings
Thousands of Dollars Corporation/ Inc./FPL FPL
<CAPTION> AMS Realty, Colonial Adjusting Group
Inc./ Penn HJT & LCR CAS & Capital
Turner Holdings, Holdings Investments, Elim. Inc
ASSETS Corporation Inc. Consolidated Inc. Entries Consolidated
----------- -------- ------------ ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $33 $272 $0 $0 $0 $427,361
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 0 55,081
Less accumulated depr. & amort. 0 (272) 0 0 0 (80,608)
Total prop., plant and eqpt.-net 33 0 0 0 0 401,834
CURRENT ASSETS
Cash and cash equivalents 903 0 2,261 12 (1) 29,584
Customer receivables - net 2,244 0 0 0 0 38,315
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 42,551
Deferred clause expenses 0 0 0 0 0 0
Other (3,914) 2,755 51,458 1,000,480 (1,093,030) 206,878
Total current assets (767) 2,755 53,719 1,000,492 (1,093,031) 317,328
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 0 335,004 0 (2,100,334) 720,222
Other 1,013 0 0 0 (2,167) 322,677
Total other assets 1,013 0 335,004 0 (2,102,501) 1,042,899
TOTAL ASSETS $279 $2,755 $388,723 $1,000,492 ($3,195,532) $1,762,061
CAPITALIZATION
Common shareholders' equity $2,338 $2,826 $388,768 $1,000,372 ($2,096,284) $748,964
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 (128,853) 156,133
Total capitalization 2,338 2,826 388,768 1,000,372 (2,225,137) 905,097
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 110,000
Cur. matur. of ltd. & pref. stock 0 0 0 0 128,853 128,853
Accounts payable 4,769 0 0 0 0 17,272
Customers' deposits 52 0 0 0 0 52
Accrued interest and taxes 0 0 (86) 0 (773) 1,732
Deferred clause revenue 0 0 0 0 0 0
Other 0 0 41 120 (1,096,309) 52,235
Total current liabilities 4,821 0 (45) 120 (968,229) 310,144
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (6,880) (71) 0 0 (2,167) 451,451
Def. 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 1 95,369
Total other liab. & def. credits (6,880) (71) 0 0 (2,166) 546,820
TOTAL CAPITALIZATION AND LIABILITIES $279 $2,755 $388,723 $1,000,492 ($3,195,532) $1,762,061
</TABLE>
<TABLE>
FPL GROUP CAPITAL INC AND SUBSIDIARIES 12
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS FPL
DECEMBER 31, 1998 Turner Foods Holdings
Thousands of Dollars Corporation/ Inc./FPL FPL
<CAPTION> AMS Realty, Colonial Adjusting Group
Inc./ Penn HJT & LCR CAS & Capital
Turner Holdings, Holdings Investments, Elim. Inc
INCOME STATEMENT Corporation Inc. Consolidated Inc. Entries Consolidated
----------- -------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $32,099 $0 $0 $0 $0 $294,740
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 68,624
Other operations and maintenance 26,127 11 37 102 1 119,774
Depreciation & amortization 3,884 0 0 0 0 34,839
Taxes other than income taxes 0 0 0 0 (1) 1,957
Total operating expenses 30,011 11 37 102 0 225,194
OPERATING INCOME 2,088 (11) (37) (102) 0 69,546
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 2,402 (125,993)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net (35,174) 6,100 34,882 480 (47,895) 61,395
Total other deductions - net (35,174) 6,100 34,882 480 (45,493) (64,598)
INCOME BEFORE INCOME TAXES (33,086) 6,089 34,845 378 (45,493) 4,948
INCOME TAXES (12,759) 39 12,196 132 0 (62,761)
NET INCOME (LOSS) (20,327) 6,050 22,649 246 (45,493) 67,709
RET. EARNINGS (DEF.) AT BEG. OF YEAR 11,891 3,426 22,688 0 (14,441) (878,409)
DEDUCT:
Dividends 0 7,500 0 0 (7,500) 0
Other 0 0 0 8,858 (8,858) 0
RET. EARNINGS (DEF.) AT END OF YEAR ($8,436) $1,976 $45,337 ($8,612) ($43,576) ($810,700)
</TABLE>
<TABLE>
ALANDCO INC. AND SUBSIDIARIES 13
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting
Alandco/ Alandco & Alandco
Alandco, Cascade, I, Elim. Inc.
ASSETS Inc. Inc. Inc. Entries Consolidated
------- -------- ------- -------- ------------
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. ($1,565) $1,565 $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 prop., plant and eqpt.-net (1,565) 1,565 0 0 0
CURRENT ASSETS
Cash and cash equivalents 6 0 0 0 6
Customer receivables - net 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 0 1,042 0 0 1,042
Total current assets 6 1,042 0 0 1,048
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 22,528 0 0 (22,528) 0
Other (1,248) 1,753 709 0 1,214
Total other assets 21,280 1,753 709 (22,528) 1,214
TOTAL ASSETS $19,721 $4,360 $709 ($22,528) $2,262
CAPITALIZATION
Common shareholders' equity $19,721 $3,927 $709 ($22,528) $1,829
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 19,721 3,927 709 (22,528) 1,829
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 430 0 0 430
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 0 3 0 0 3
Total current liabilities 0 433 0 0 433
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0
Def. 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 liab. & def. credits 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $19,721 $4,360 $709 ($22,528) $2,262
</TABLE>
<TABLE>
ALANDCO INC. AND SUBSIDIARIES 14
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting
Alandco/ Alandco & Alandco
Alandco, Cascade, I, Elim. Inc.
INCOME STATEMENT Inc. Inc. Inc. Entries Consolidated
------- ------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $7 $0 $0 $7
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 0 120 0 0 120
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 0 40 0 0 40
Total operating expenses 0 160 0 0 160
OPERATING INCOME 0 (153) 0 0 (153)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 691 (1,114) 0 703 280
Total other deductions - net 691 (1,114) 0 703 280
INCOME BEFORE INCOME TAXES 691 (1,267) 0 703 127
INCOME TAXES 538 (564) 0 0 (26)
NET INCOME (LOSS) 153 (703) 0 703 153
RET. EARNINGS (DEF.) AT BEG. OF YEAR (6,130) (20,123) 2,014 18,109 (6,130)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($5,977) ($20,826) $2,014 $18,812 ($5,977)
</TABLE>
<TABLE>
FPL ENERGY INC. 15
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting FPL
FPL ESI FPL Group & Energy,
Energy, Energy, International, Elim. Inc.
ASSETS Inc. Inc. Inc. Entries Consolidated
--------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $739 $416,033 $8,809 $0 $425,581
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 41,732 0 0 41,732
Less accumulated depr. & amort. (34) (79,568) (734) 0 (80,336)
Total prop., plant and eqpt.-net 705 378,197 8,075 0 386,977
CURRENT ASSETS
Cash and cash equivalents 275 8,279 2,845 0 11,399
Customer receivables - net 0 31,022 339 (35) 31,326
Mat'ls., supplies & fossil fuel inv. 0 39,474 0 0 39,474
Deferred clause expenses 0 0 0 0 0
Other 1,777 207,224 2,963 (121,940) 90,024
Total current assets 2,052 285,999 6,147 (121,975) 172,223
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 0 332,616 31,928 (1) 364,543
Other 950,988 270,301 41,077 (946,197) 316,169
Total other assets 950,988 602,917 73,005 (946,198) 680,712
TOTAL ASSETS $953,745 $1,267,113 $87,227 ($1,068,173) $1,239,912
CAPITALIZATION
Common shareholders' equity $828,340 $753,525 $80,652 ($946,197) $716,320
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 156,672 0 0 156,672
Total capitalization 828,340 910,197 80,652 (946,197) 872,992
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 878 10,014 709 (117) 11,484
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 44 0 0 44
Deferred clause revenue 0 0 0 0 0
Other 128,094 43,356 8,405 (121,858) 57,997
Total current liabilities 128,972 53,414 9,114 (121,975) 69,525
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (3,567) 278,096 (2,698) 0 271,831
Def. 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 25,406 159 (1) 25,564
Total other liab. & def. credits (3,567) 303,502 (2,539) (1) 297,395
TOTAL CAPITALIZATION AND LIABILITIES $953,745 $1,267,113 $87,227 ($1,068,173) $1,239,912
</TABLE>
<TABLE>
FPL ENERGY INC.
CONSOLIDATING STATEMENTS OF INCOME AND 16
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting FPL
FPL ESI FPL Group & Energy,
Energy, Energy, International, Elim. Inc.
INCOME STATEMENT Inc. Inc. Inc. Entries Consolidated
--------- --------- ------------- -------- ------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $232,290 $2,169 ($1) $234,458
OPERATING EXPENSES
Fuel, purchased power & interchange 0 52,920 0 1 52,921
Other operations and maintenance 11,315 46,250 5,337 380 63,282
Depreciation & amortization 34 30,292 553 0 30,879
Taxes other than income taxes 49 1,790 23 4 1,866
Total operating expenses 11,398 131,252 5,913 385 148,948
OPERATING INCOME (11,398) 101,038 (3,744) (386) 85,510
OTHER INCOME (DEDUCTIONS):
Interest charges 0 (78,029) 0 0 (78,029)
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 42,836 64,343 (4,689) (46,976) 55,514
Total other deductions - net 42,836 (13,686) (4,689) (46,976) (22,515)
INCOME BEFORE INCOME TAXES 31,438 87,352 (8,433) (47,362) 62,995
INCOME TAXES (5,343) 35,456 (3,899) 0 26,214
NET INCOME (LOSS) 36,781 51,896 (4,534) (47,362) 36,781
RET. EARNINGS (DEF.) AT BEG. OF YEAR 9,040 21,453 (12,412) (9,041) 9,040
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $45,821 $73,349 ($16,946) ($56,403) $45,821
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 17
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 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 ser. and other prop. $1,094 $0 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 126 0 0 0 0 0
Less accumulated depr. & amort. (584) 0 0 0 0 0
Total prop., plant and eqpt.-net 636 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents (5,203) 0 0 0 0 0
Customer receivables - net 2,216 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 202,084 64,658 (1,849) (22,943) 6,010 1,324
Total current assets 199,097 64,658 (1,849) (22,943) 6,010 1,324
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 576,328 144,789 0 7,701 (3,173) 3,928
Other 26,667 0 0 0 0 0
Total other assets 602,995 144,789 0 7,701 (3,173) 3,928
TOTAL ASSETS $802,728 $209,447 ($1,849) ($15,242) $2,837 $5,252
CAPITALIZATION
Common shareholders' equity $677,949 $54,260 ($998) ($18,134) ($16,973) $2,813
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 500 0 0 0 6,046 0
Total capitalization 678,449 54,260 (998) (18,134) (10,927) 2,813
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 600 0 0 0 0 0
Accounts payable 663 0 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0 0
Other 137,978 4,589 539 134 5,370 64
Total current liabilities 139,241 4,589 539 134 5,370 64
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (15,244) 150,598 (1,390) 2,758 8,394 2,375
Def. 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 282 0 0 0 0 0
Total other liab. & def. credits (14,962) 150,598 (1,390) 2,758 8,394 2,375
TOTAL CAPITALIZATION AND LIABILITIES $802,728 $209,447 ($1,849) ($15,242) $2,837 $5,252
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 18
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998 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 $864 $0 $208 $200 $0 $75
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 11,163 3 65 7 15 5
Depreciation & amortization 165 0 0 0 0 0
Taxes other than income taxes 43 0 1 1 0 0
Total operating expenses 11,371 3 66 8 15 5
OPERATING INCOME (10,507) (3) 142 192 (15) 70
OTHER INCOME (DEDUCTIONS):
Interest charges (14) 0 0 0 (801) 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net (35,221) 1,313 2,906 0 3,596 0
Total other deductions - net (35,235) 1,313 2,906 0 2,795 0
INCOME BEFORE INCOME TAXES (45,742) 1,310 3,048 192 2,780 70
INCOME TAXES (7,615) 571 867 (176) 1,309 230
NET INCOME (LOSS) (38,127) 739 2,181 368 1,471 (160)
RET. EARNINGS (DEF.) AT BEG. OF YEAR 21,453 2,737 2,003 15,693 (172) 2,927
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($16,674) $3,476 $4,184 $16,061 $1,299 $2,767
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 19
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 ESI
Thousands of Dollars CH POSDEF, Antilles,
<CAPTION> Inc./ Inc./
ESI ESI ESI CH ESI
Kern Front, Double "C", Victory, POSDEF LP, Antilles
ASSETS Inc. Inc. Inc. Inc. LP, Inc.
----------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0
Customer receivables - net 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 6,569 4,948 (419) (11,707) 12,059
Total current assets 6,569 4,948 (419) (11,707) 12,059
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 1,111 2,092 9,075 0 0
Other 0 0 0 0 0
Total other assets 1,111 2,092 9,075 0 0
TOTAL ASSETS $7,680 $7,040 $8,656 ($11,707) $12,059
CAPITALIZATION
Common shareholders' equity $5,169 $3,387 $5,263 ($3,676) $11,946
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 5,169 3,387 5,263 (3,676) 11,946
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 0 0 0 0
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 66 61 82 476 113
Total current liabilities 66 61 82 476 113
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 2,445 3,592 3,311 (8,507) 0
Def. 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 liab. & def. credits 2,445 3,592 3,311 (8,507) 0
TOTAL CAPITALIZATION AND LIABILITIES $7,680 $7,040 $8,656 ($11,707) $12,059
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 20
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998 ESI
Thousands of Dollars CH POSDEF, Antilles,
<CAPTION> Inc./ Inc./
ESI ESI ESI CH ESI
Kern Front, Double "C", Victory, POSDEF LP, Antilles
INCOME STATEMENT Inc. Inc. Inc. Inc. LP, Inc.
---------- ----------- --------- --------- -----------
<S> <C> <C> <C> <C>
OPERATING REVENUES $12 $0 $0 $148 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 4 5 28 60 0
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 0 0 1 0 0
Total operating expenses 4 5 29 60 0
OPERATING INCOME 8 (5) (29) 88 0
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 0 (1) 2,867 7,271 0
Total other deductions - net 0 (1) 2,867 7,271 0
INCOME BEFORE INCOME TAXES 8 (6) 2,838 7,359 0
INCOME TAXES 60 50 997 2,428 0
NET INCOME (LOSS) (52) (56) 1,841 4,931 0
RET. EARNINGS (DEF.) AT BEG. OF YEAR 2,097 1,963 7,916 3,132 (3,632)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $2,045 $1,907 $9,757 $8,063 ($3,632)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 21
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 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 ser. and other prop. $0 $283 $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 prop., plant and eqpt.-net 0 283 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 4,904 0 0 0 0
Customer receivables - net 0 2,176 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 205 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 691 3,834 (1,420) 15,999 (6,244) (11,548)
Total current assets 691 11,119 (1,420) 15,999 (6,244) (11,548)
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments (69) 500 0 0 0 0
Other 0 88,738 0 0 0 0
Total other assets (69) 89,238 0 0 0 0
TOTAL ASSETS $622 $100,640 ($1,420) $15,999 ($6,244) ($11,548)
CAPITALIZATION
Common shareholders' equity ($2) ($2,140) ($1,782) ($2,282) ($6,315) ($11,713)
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization (2) (2,140) (1,782) (2,282) (6,315) (11,713)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 70,500 0 0 0 0
Accounts payable 0 1,372 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 2,530 0 0 0 0
Deferred clause revenue 0 0 0 0 0 0
Other 599 4,862 362 657 118 165
Total current liabilities 599 79,264 362 657 118 165
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 25 22,340 0 17,624 (47) 0
Def. 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 1,176 0 0 0 0
Total other liab. & def. credits 25 23,516 0 17,624 (47) 0
TOTAL CAPITALIZATION AND LIABILITIES $622 $100,640 ($1,420) $15,999 ($6,244) ($11,548)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 22
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998 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 $24,297 $0 $250 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 1,835 0 0 0 0
Other operations and maintenance 76 6,053 24 154 1 2
Depreciation & amortization 0 3,199 0 0 0 0
Taxes other than income taxes 0 168 6 0 1 1
Total operating expenses 76 11,255 30 154 2 3
OPERATING INCOME 324 13,042 (30) 96 (2) (3)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 (6,381) (3) 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 38 (498) 0 0 0 0
Total other deductions - net 38 (6,879) (3) 0 0 0
INCOME BEFORE INCOME TAXES 362 6,163 (33) 96 (2) (3)
INCOME TAXES 139 2,907 (11) 72 (182) (1)
NET INCOME (LOSS) 223 3,256 (22) 24 180 (2)
RET. EARNINGS (DEF.) AT BEG. OF YEAR 1,156 (2,668) (555) 6,811 8,436 21,448
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $1,379 $588 ($577) $6,835 $8,616 $21,446
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 23
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
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 ser. and other prop. $0 $13 $0 $0 $0 $1,759
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 (29)
Total prop., plant and eqpt.-net 0 13 0 0 0 1,730
CURRENT ASSETS
Cash and cash equivalents 0 0 7 0 0 2,583
Customer receivables - net 0 0 0 0 0 1,699
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 142
Deferred clause expenses 0 0 0 0 0 0
Other (6,592) (3,017) 28,267 9,571 567 11,223
Total current assets (6,592) (3,017) 28,274 9,571 567 15,647
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 (2,685) 23,080 8,033 0 0
Other 0 0 0 0 0 111,530
Total other assets 0 (2,685) 23,080 8,033 0 111,530
TOTAL ASSETS ($6,592) ($5,689) $51,354 $17,604 $567 $128,907
CAPITALIZATION
Common shareholders' equity ($6,674) ($6,734) $56,736 ($2,847) $175 $3,720
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 79,500
Total capitalization (6,674) (6,734) 56,736 (2,847) 175 83,220
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 1,302
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 2,854
Deferred clause revenue 0 0 0 0 0 0
Other 121 63 (76) 129 392 1,321
Total current liabilities 121 63 (76) 129 392 5,477
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (39) 982 (5,306) 20,322 0 31,864
Def. 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 8,346
Total other liab. & def. credits (39) 982 (5,306) 20,322 0 40,210
TOTAL CAPITALIZATION AND LIABILITIES ($6,592) ($5,689) $51,354 $17,604 $567 $128,907
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 24
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
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 $27 $24,684
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 1,646
Other operations and maintenance 1 0 6 31 68 6,117
Depreciation & amortization 0 0 0 0 0 3,943
Taxes other than income taxes 1 0 6 1 0 169
Total operating expenses 2 0 12 32 68 11,875
OPERATING INCOME (2) 0 (12) (32) (41) 12,809
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 (13,044)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 1,509 2,488 10,002 1 (353)
Total other deductions - net 0 1,509 2,488 10,002 1 (13,397)
INCOME BEFORE INCOME TAXES (2) 1,509 2,476 9,970 (40) (588)
INCOME TAXES (63) 571 891 3,444 (13) 648
NET INCOME (LOSS) 61 938 1,585 6,526 (27) (1,236)
RET. EARNINGS (DEF.) AT BEG. OF YEAR 9,080 7,371 14,211 19,061 202 (1,172)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $9,141 $8,309 $15,796 $25,587 $175 ($2,408)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 25
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> ESI ESI ESI
ESI California ESI WTE Montgomery
Brady, Holdings, Steamboat, Development, County,
ASSETS Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 0
Customer receivables - net 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 670 4,171 43 63 45,826
Total current assets 670 4,171 43 63 45,826
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 9,531 0 0 0 0
Other 0 0 0 0 0
Total other assets 9,531 0 0 0 0
TOTAL ASSETS $10,201 $4,171 $43 $63 $45,826
CAPITALIZATION
Common shareholders' equity $10,715 $4,054 ($40) $62 ($30,417)
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 7,405
Total capitalization 10,715 4,054 (40) 62 (23,012)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 0 0 0 0
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 854 117 83 1 20,682
Total current liabilities 854 117 83 1 20,682
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (1,368) 0 0 0 48,156
Def. 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 liab. & def. credits (1,368) 0 0 0 48,156
TOTAL CAPITALIZATION AND LIABILITIES $10,201 $4,171 $43 $63 $45,826
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 26
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> ESI ESI ESI
ESI California ESI WTE Montgomery
Brady, Holdings, Steamboat, Development, County,
INCOME STATEMENT Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $17 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 165 11 68 0 (75)
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 3 0 0 0 0
Total operating expenses 168 11 68 0 (75)
OPERATING INCOME (168) (11) (51) 0 75
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 (605)
Preferred stock dividends - FPL 0 0 0 0 0
Other-net (194) 1 (61) 0 7,229
Total other deductions - net (194) 1 (61) 0 6,624
INCOME BEFORE INCOME TAXES (362) (10) (112) 0 6,699
INCOME TAXES 2,205 (3) (11) 0 2,726
NET INCOME (LOSS) (2,567) (7) (101) 0 3,973
RET. EARNINGS (DEF.) AT BEG. OF YEAR (6,822) 64 61 3,171 (14,033)
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($9,389) $57 ($40) $3,171 ($10,060)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES ESI Doswell Inc./ 27
CONSOLIDATING BALANCE SHEET ESI Doswell GP, Inc./
DECEMBER 31, 1998 Doswell-Hanover, Inc./
Thousands of Dollars Doswell I, Inc./ ESI Cherokee GP, Inc./
<CAPTION> ESI Doswell GP II, Inc./ ESI Cherokee LP, Inc./
ESI ESI Doswell LP Holdings, ESI Cherokee
LP, Inc./ESI DLP-LP Holdings, Inc./
ASSETS Inc. Holdings, Inc. ESI Cherokee MGP, Inc.
<S> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $0 $411,275 $0
Nuclear fuel under capital lease 0 0 0
Construction work in progress 0 0 0
Less accumulated depr. & amort. 0 (78,946) 0
Total prop., plant and eqpt.-net 0 332,329 0
CURRENT ASSETS
Cash and cash equivalents 0 2,876 7,701
Customer receivables - net 0 23,773 800
Mat'ls., supplies & fossil fuel inv. 0 37,026 0
Deferred clause expenses 0 0 0
Other 533 13,097 1,013
Total current assets 533 76,772 9,514
OTHER ASSETS:
Special use funds of FPL 0 0 0
Other investments 9,531 0 6,247
Other 0 38,644 10
Total other assets 9,531 38,644 6,257
TOTAL ASSETS $10,064 $447,745 $15,771
CAPITALIZATION
Common shareholders' equity $11,426 $103,692 $6,192
Pref. stk. w/o sinking fund require. 0 0 0
Long-term debt 0 315,500 0
Total capitalization 11,426 419,192 6,192
CURRENT LIABILITIES
Short-term debt 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0
Accounts payable 0 5,266 0
Customers' deposits 0 0 0
Accrued interest and taxes 0 859 0
Deferred clause revenue 0 0 0
Other 5 4,235 8,533
Total current liabilities 5 10,360 8,533
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (1,367) 18,193 443
Def. regulatory credit - income taxes 0 0 0
Unamortized investment tax credits 0 0 0
Storm and property insurance reserve 0 0 0
Other 0 0 603
Total other liab. & def. credits (1,367) 18,193 1,046
TOTAL CAPITALIZATION AND LIABILITIES $10,064 $447,745 $15,771
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 28
CONSOLIDATING STATEMENTS OF INCOME AND ESI Doswell Inc./
RETAINED EARNINGS ESI Doswell GP, Inc./
DECEMBER 31, 1998 Doswell-Hanover, Inc./
Thousands of Dollars Doswell I, Inc./ ESI Cherokee GP, Inc./
<CAPTION> ESI Doswell GP II, Inc./ ESI Cherokee LP, Inc./
ESI ESI Doswell LP Holdings, ESI Cherokee
LP, Inc./ESI DLP-LP Holdings, Inc./
INCOME STATEMENT Inc. Holdings, Inc. ESI Cherokee MGP, Inc./
<S> <C> <C> <C>
OPERATING REVENUES $0 $171,008 $548
OPERATING EXPENSES
Fuel, purchased power & interchange 0 49,439 0
Other operations and maintenance 3 12,980 1,172
Depreciation & amortization 0 22,822 0
Taxes other than income taxes 2 1,188 10
Total operating expenses 5 86,429 1,182
OPERATING INCOME (5) 84,579 (634)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 (68,824) 0
Preferred stock dividends - FPL 0 0 0
Other-net (194) 3,495 (2,109)
Total other deductions - net (194) (65,329) (2,109)
INCOME BEFORE INCOME TAXES (199) 19,250 (2,743)
INCOME TAXES 2,259 7,990 (827)
NET INCOME (LOSS) (2,458) 11,260 (1,916)
RET. EARNINGS (DEF.) AT BEG. OF YEAR (4,403) 18,074 114
DEDUCT:
Dividends 0 0 0
Other 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($6,861) $29,334 ($1,802)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES FPL Energy Operating Services, 29
CONSOLIDATING BALANCE SHEET Inc./FPL Energy Brady Pow ESI Vansycle
DECEMBER 31, 1998 Services, Inc./FPL Energy ESI ESI Mojave, GP, Inc./
Thousands of Dollars Calistoga Power Services, Calistoga Inc./ESI ESI Vansycle
<CAPTION> Inc./FPL Energy CO2 Opera LP, Inc./ Mohave LLC/ Vansycle
Inc./FPL Energy Doswell P ESI ESI Mojave LP, Inc./
Services, Inc./FPL Energy Calistoga 16/17/18 FPL Energy
ASSETS Virginia Power Services, GP, Inc. LLC Vansycle LLC
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $148 $0 $0 $20
Nuclear fuel under capital lease 0 0 0 0
Construction work in progress 0 0 0 23,352
Less accumulated depr. & amort. (9) 0 0 0
Total prop., plant and eqpt.-net 139 0 0 23,372
CURRENT ASSETS
Cash and cash equivalents 80 0 0 104
Customer receivables - net 0 0 0 357
Mat'ls., supplies & fossil fuel inv. 0 0 0 0
Deferred clause expenses 0 0 0 0
Other 2,037 599 (31) 150
Total current assets 2,117 599 (31) 611
OTHER ASSETS:
Special use funds of FPL 0 0 0 0
Other investments 0 11,762 107 296
Other 1,262 0 0 519
Total other assets 1,262 11,762 107 815
TOTAL ASSETS $3,518 $12,361 $76 $24,798
CAPITALIZATION
Common shareholders' equity $2,133 $9,152 $38 $24,114
Pref. stk. w/o sinking fund require. 0 0 0 0
Long-term debt 0 0 0 0
Total capitalization 2,133 9,152 38 24,114
CURRENT LIABILITIES
Short-term debt 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0
Accounts payable 103 0 0 0
Customers' deposits 0 0 0 0
Accrued interest and taxes 0 0 0 0
Deferred clause revenue 0 0 0 0
Other 1,260 406 77 684
Total current liabilities 1,363 406 77 684
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 22 2,803 (39) 0
Def. 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 0 0 0 0
Total other liab. & def. credits 22 2,803 (39) 0
TOTAL CAPITALIZATION AND LIABILITIES $3,518 $12,361 $76 $24,798
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 30
CONSOLIDATING STATEMENTS OF INCOME AND FPL Energy Operating Serv
RETAINED EARNINGS Inc./FPL Energy Brady Pow ESI Vansycle
DECEMBER 31, 1998 Services, Inc./FPL Energy ESI ESI Mojave, GP, Inc./
Thousands of Dollars Calistoga Power Services, Calistoga Inc./ESI ESI Vansycle
<CAPTION> Inc./FPL Energy CO2 Opera LP, Inc./ Mohave LLC/ Vansycle
Inc./FPL Energy Doswell P ESI ESI Mojave LP, Inc./
Services, Inc./FPL Energy Calistoga 16/17/18 FPL Energy
INCOME STATEMENT Virginia Power Services, GP, Inc. LLC Vansycle LLC
<S> <C> <C> <C> <C>
OPERATING REVENUES $3,587 $331 $0 $434
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0
Other operations and maintenance 823 230 62 421
Depreciation & amortization 91 0 0 0
Taxes other than income taxes 11 1 0 1
Total operating expenses 925 231 62 422
OPERATING INCOME 2,662 100 (62) 12
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0
Other-net 0 4,507 21 0
Total other deductions - net 0 4,507 21 0
INCOME BEFORE INCOME TAXES 2,662 4,607 (41) 12
INCOME TAXES 980 1,981 (12) (83)
NET INCOME (LOSS) 1,682 2,626 (29) 95
RET. EARNINGS (DEF.) AT BEG. OF YEAR 288 1,631 7 (189)
DEDUCT:
Dividends 0 0 0 0
Other 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $1,970 $4,257 ($22) ($94)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 31
CONSOLIDATING BALANCE SHEET ESI Silverado
DECEMBER 31, 1998 Delaware, LLC/
Thousands of Dollars ESI Silverad
<CAPTION> Holding, LLC Harper Harper
Silverado Lake Lake ESI Altamont
Geothermal Acquistions, Holdings, Acquisitions,
ASSETS Resources, Inc. Inc. Inc. Inc./
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $1,123 $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 prop., plant and eqpt.-net 1,123 0 0 0
CURRENT ASSETS
Cash and cash equivalents 3,855 0 0 0
Customer receivables - net 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 2,100 0 0
Deferred clause expenses 0 0 0 0
Other 1,960 14 (3,831) 776
Total current assets 5,815 2,114 (3,831) 776
OTHER ASSETS:
Special use funds of FPL 0 0 0 0
Other investments 0 0 0 17,818
Other (98) 0 0 0
Total other assets (98) 0 0 17,818
TOTAL ASSETS $6,840 $2,114 ($3,831) $18,594
CAPITALIZATION
Common shareholders' equity $10,442 ($27) ($4,243) $17,873
Pref. stk. w/o sinking fund require. 0 0 0 0
Long-term debt 10,000 0 0 0
Total capitalization 20,442 (27) (4,243) 17,873
CURRENT LIABILITIES
Short-term debt 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0
Accounts payable 5 0 0 0
Customers' deposits 0 0 0 0
Accrued interest and taxes 0 0 0 0
Deferred clause revenue 0 0 0 0
Other 435 2,141 412 42
Total current liabilities 440 2,141 412 42
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (29,043) 0 0 679
Def. 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 15,001 0 0 0
Total other liab. & def. credits (14,042) 0 0 679
TOTAL CAPITALIZATION AND LIABILITIES $6,840 $2,114 ($3,831) $18,594
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 32
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS ESI Silverado
DECEMBER 31, 1998 Delaware, LLC/
Thousands of Dollars ESI Silverad
<CAPTION> Holding, LLC Harper Harper
Silverado Lake Lake ESI Altamont
Geothermal Acquistions, Holdings, Acquisitions,
INCOME STATEMENT Resources, Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C>
OPERATING REVENUES $3,094 $0 $0 $367
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0
Other operations and maintenance 2,504 4 43 839
Depreciation & amortization 72 0 0 0
Taxes other than income taxes 172 0 (1) 0
Total operating expenses 2,748 4 42 839
OPERATING INCOME 346 (4) (42) (472)
OTHER INCOME (DEDUCTIONS):
Interest charges (3,906) 0 0 0
Preferred stock dividends - FPL 0 0 0 0
Other-net 4,126 0 0 2,819
Total other deductions - net 220 0 0 2,819
INCOME BEFORE INCOME TAXES 566 (4) (42) 2,347
INCOME TAXES 1,997 (1) (51) 599
NET INCOME (LOSS) (1,431) (3) 9 1,748
RET. EARNINGS (DEF.) AT BEG. OF YEAR 243 (24) 7,206 0
DEDUCT:
Dividends 0 0 0 0
Other 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($1,188) ($27) $7,215 $1,748
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 33
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> ESI ESI ESI ESI Northeast Northern
Ormesa Northeast Northeast Energy Cross ESI Northeast
Holdings, Energy GP Energy LP, Acquisition Investments, Energy
ASSETS Inc. Inc. Inc. Funding Inc. Inc. Funding, Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 0 0 0 (6) 0
Customer receivables - net 0 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other (3) 37 3,139 1 49,671 0
Total current assets (3) 37 3,139 1 49,665 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 1,245 61,029 6 (6,384) 0
Other 0 0 0 0 0 0
Total other assets 0 1,245 61,029 6 (6,384) 0
TOTAL ASSETS ($3) $1,282 $64,168 $7 $43,281 $0
CAPITALIZATION
Common shareholders' equity ($18) $695 $12,733 ($3) $43,277 $0
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization (18) 695 12,733 (3) 43,277 0
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & 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 6,796 0 0 0
Deferred clause revenue 0 0 0 0 0 0
Other 15 524 1 10 4 0
Total current liabilities 15 524 6,797 10 4 0
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 63 3,107 0 0 0
Def. 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 41,531 0 0 0
Total other liab. & def. credits 0 63 44,638 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES ($3) $1,282 $64,168 $7 $43,281 $0
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 34
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> ESI ESI ESI ESI Northeast Northern
Ormesa Northeast Northeast Energy Cross ESI Northeast
Holdings, Energy GP Energy LP, Acquisition Investments, Energy
INCOME STATEMENT Inc. Inc. Inc. Funding Inc. Inc. Funding, Inc.
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $765 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 15 524 0 10 8 0
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 2 0
Total operating expenses 15 524 0 10 10 0
OPERATING INCOME (15) 241 0 (10) (10) 0
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 (6,796) 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 0 174 8,549 6 10,598 0
Total other deductions - net 0 174 1,753 6 10,598 0
INCOME BEFORE INCOME TAXES (15) 415 1,753 (4) 10,588 0
INCOME TAXES 3 158 (31) (1) 4,987 0
NET INCOME (LOSS) (18) 257 1,784 (3) 5,601 0
RET. EARNINGS (DEF.) AT BEG. OF YEAR 0 0 0 0 109 0
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($18) $257 $1,784 ($3) $5,710 $0
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 35
CONSOLIDATING BALANCE SHEET ESI Oremesa
DECEMBER 31, 1998 IE Equity Inc/
Thousands of Dollars ESI Equity
<CAPTION> Sullivan Holdings LLC/ ESI Harper
Street ESI Tehachapi ESI Ormesa Oremesa Lake
Investments, Acquisitions IE Resource Holdings I Management,
ASSETS Inc. Inc. LLC LLC Inc.
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents (6) 0 0 0 0
Customer receivables - net 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other 312,259 2,255 (30) 33 0
Total current assets 312,253 2,255 (30) 33 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 5 (20) 235 0 0
Other 0 0 0 0 19
Total other assets 5 (20) 235 0 19
TOTAL ASSETS $312,258 $2,235 $205 $33 $19
CAPITALIZATION
Common shareholders' equity $312,246 $173 ($121) ($173) $19
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 312,246 173 (121) (173) 19
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 0 0 0 0
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 12 2,041 0 206 0
Total current liabilities 12 2,041 0 206 0
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 21 326 0 0
Def. 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 liab. & def. credits 0 21 326 0 0
TOTAL CAPITALIZATION AND LIABILITIES $312,258 $2,235 $205 $33 $19
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 36
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS ESI Oremesa
DECEMBER 31, 1998 IE Equity
Thousands of Dollars Inc./ESI Equity
<CAPTION> Sullivan Holdings LLC/ ESI Harper
Street ESI Tehachapi ESI Ormesa Oremesa Lake
Investments, Acquisitions IE Resource Holdings I Management,
INCOME STATEMENT Inc. Inc. LLC LLC Inc.
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $76 $0 $162 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 7 59 0 247 0
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 2 0 0 0 0
Total operating expenses 9 59 0 247 0
OPERATING INCOME (9) 17 0 (85) 0
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 11,157 (912) 0 0 0
Total other deductions - net 11,157 (912) 0 0 0
INCOME BEFORE INCOME TAXES 11,148 (895) 0 (85) 0
INCOME TAXES 3,886 (185) 356 0 1
NET INCOME (LOSS) 7,262 (710) (356) (85) (1)
RET. EARNINGS (DEF.) AT BEG. OF YEAR 315 0 0 0 0
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $7,577 ($710) ($356) ($85) ($1)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 37
CONSOLIDATING BALANCE SHEET ESI West
DECEMBER 31, 1998 ESI Hawkeye FPL Texas Energy,
Thousands of Dollars ESI Power, Inc./ Energy Inc./ESI
<CAPTION> Northeast Hawkeye GEO East West Texas ESI Oremesa
Fuel Power East Mesa Mesa Energy Debt
Management, Partners, Partners, Geothermal Partners Holdings,
ASSETS Inc. LLC Inc. LLC LLC LLC
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $0 $153 $0 $0 $0 $0
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 18,255 0 0 0 0
Less accumulated depr. & amort. 0 0 0 0 0 0
Total prop., plant and eqpt.-net 0 18,408 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 92 0 0 0 0
Customer receivables - net 0 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other (149) 332 494 0 0 0
Total current assets (149) 424 494 0 0 0
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 0 0 382 13 7,375 13,343
Other 0 0 0 3,010 0 0
Total other assets 0 0 382 3,023 7,375 13,343
TOTAL ASSETS ($149) $18,832 $876 $3,023 $7,375 $13,343
CAPITALIZATION
Common shareholders' equity ($262) $17,533 $838 $2,959 $7,375 $13,342
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization (262) 17,533 838 2,959 7,375 13,342
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0 0
Accounts payable 0 1,299 0 0 0 0
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0 0
Other 113 0 38 64 0 1
Total current liabilities 113 1,299 38 64 0 1
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Def. 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 liab. & def. credits 0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES ($149) $18,832 $876 $3,023 $7,375 $13,343
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 38
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS ESI West
DECEMBER 31, 1998 ESI Hawkeye FPL Texas Energy,
Thousands of Dollars ESI Power, Inc./ Energy Inc./ESI
<CAPTION> Northeast Hawkeye GEO East West Texas ESI Oremesa
Fuel Power East Mesa Mesa Energy Debt
Management, Partners, Partners, Geothermal Partners Holdings,
INCOME STATEMENT Inc. LLC Inc. LLC LLC LLC
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $736 $0 $0 $0 $0 $0
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 0
Other operations and maintenance 0 1,513 38 48 0 1
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0 0
Total operating expenses 0 1,513 38 48 0 1
OPERATING INCOME 736 (1,513) (38) (48) 0 (1)
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 (1,279) 0 0 0
Total other deductions - net 0 0 (1,279) 0 0 0
INCOME BEFORE INCOME TAXES 736 (1,513) (1,317) (48) 0 (1)
INCOME TAXES 288 (325) (493) 0 0 0
NET INCOME (LOSS) 448 (1,188) (824) (48) 0 (1)
RET. EARNINGS (DEF.) 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
RET. EARNINGS (DEF.) AT END OF YEAR $448 ($1,188) ($824) ($48) $0 ($1)
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 39
CONSOLIDATING BALANCE SHEET FPL
DECEMBER 31, 1998 Energy
Thousands of Dollars FPL Everett ESI
<CAPTION> ESI Energy LLC/FPL Virginia Adjusting
Cannon Pacific Crest Energy Power & ESI
Acquisitions Partner, Everett Services, Elim. Energy, Inc.
ASSETS LLC LLC L.L.C. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $0 $47 $118 $0 $0 $416,033
Nuclear fuel under capital lease 0 0 0 0 0 0
Construction work in progress 0 0 0 0 (1) 41,732
Less accumulated depr. & amort. 0 0 0 0 0 (79,568)
Total prop., plant and eqpt.-net 0 47 118 0 (1) 378,197
CURRENT ASSETS
Cash and cash equivalents 3 0 0 0 (8,711) 8,279
Customer receivables - net 0 0 0 0 1 31,022
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 1 39,474
Deferred clause expenses 0 0 0 0 0 0
Other 0 0 0 0 (530,042) 207,224
Total current assets 3 0 0 0 (538,751) 285,999
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 14,734 2,436 13,853 0 (601,638) 332,616
Other 0 0 0 0 0 270,301
Total other assets 14,734 2,436 13,853 0 (601,638) 602,917
TOTAL ASSETS $14,737 $2,483 $13,971 $0 ($1,140,390) $1,267,113
CAPITALIZATION
Common shareholders' equity $14,416 $2,435 $13,971 $0 ($594,081) $753,525
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 (262,279) 156,672
Total capitalization 14,416 2,435 13,971 0 (856,360) 910,197
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 (71,100) 0
Accounts payable 3 0 0 0 1 10,014
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 (12,995) 44
Deferred clause revenue 0 0 0 0 0 0
Other 318 48 0 0 (158,406) 43,356
Total current liabilities 321 48 0 0 (242,500) 53,414
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 3 278,096
Def. 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 (41,533) 25,406
Total other liab. & def. credits 0 0 0 0 (41,530) 303,502
TOTAL CAPITALIZATION AND LIABILITIES $14,737 $2,483 $13,971 $0 ($1,140,390) $1,267,113
</TABLE>
<TABLE>
ESI ENERGY, INC. AND SUBSIDIARIES 40
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS FPL
DECEMBER 31, 1998 Energy
Thousands of Dollars Everett ESI
<CAPTION> ESI FPL LLC/FPL Virginia Adjusting
Cannon Energy Energy Power & ESI
Acquisitions Pacific Crest Everett Services, Elim. Energy, Inc.
INCOME STATEMENT LLC Partner, LLC L.L.C. Inc. Entries Consolidated
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $0 $232,290
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0 52,920
Other operations and maintenance 318 2 133 0 0 46,250
Depreciation & amortization 0 0 0 0 0 30,292
Taxes other than income taxes 0 0 0 0 0 1,790
Total operating expenses 318 2 133 0 0 131,252
OPERATING INCOME (318) (2) (133) 0 0 101,038
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 22,345 (78,029)
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 682 0 0 0 19,811 64,343
Total other deductions - net 682 0 0 0 42,156 (13,686)
INCOME BEFORE INCOME TAXES 364 (2) (133) 0 42,156 87,352
INCOME TAXES 0 0 0 0 3 35,456
NET INCOME (LOSS) 364 (2) (133) 0 42,153 51,896
RET. EARNINGS (DEF.) AT BEG. OF YEAR 0 0 0 388 (124,288) 21,453
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 388 (388) 0
RET. EARNINGS (DEF.) AT END OF YEAR $364 ($2) ($133) $0 ($81,687) $73,349
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 41
CONSOLIDATING BALANCE SHEET FPL
DECEMBER 31, 1998 International
Thousands of Dollars Holdings II,
<CAPTION> FPL Inc./
FPL Group International FPL Owenreagh Owenreagh
Internationa Investment Internationa Cayman Power Cayman,
ASSETS Inc. Company Holdings, In Partners, LLC Inc.
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $92 $0 $0 $0 $8,628
Nuclear fuel under capital lease 0 0 0 0 0
Construction work in progress 0 0 0 0 0
Less accumulated depr. & amort. (20) 0 0 0 (714)
Total prop., plant and eqpt.-net 72 0 0 0 7,914
CURRENT ASSETS
Cash and cash equivalents (21) 0 0 0 2,859
Customer receivables - net 4 0 0 0 335
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other (3,075) 0 0 0 0
Total current assets (3,092) 0 0 0 3,194
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments 90,647 15,174 17,464 0 0
Other 27 0 0 0 960
Total other assets 90,674 15,174 17,464 0 960
TOTAL ASSETS $87,654 $15,174 $17,464 $0 $12,068
CAPITALIZATION
Common shareholders' equity $87,836 $15,174 $17,464 $0 $11,340
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization 87,836 15,174 17,464 0 11,340
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 0 0 0 191
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 2,387 0 0 0 378
Total current liabilities 2,387 0 0 0 569
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (2,569) 0 0 0 0
Def. 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 0 159
Total other liab. & def. credits (2,569) 0 0 0 159
TOTAL CAPITALIZATION AND LIABILITIES $87,654 $15,174 $17,464 $0 $12,068
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 42
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS FPL
DECEMBER 31, 1998 International
Thousands of Dollars Holdings II,
<CAPTION> FPL Inc./
FPL Group International FPL Owenreagh Owenreagh
International Investment International Cayman Power Cayman,
INCOME STATEMENT Inc. Company Holdings, In Partners, LLC Inc.
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $0 $2,169
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0 0
Other operations and maintenance 4,092 4 8 2 249
Depreciation & amortization 16 0 0 0 537
Taxes other than income taxes 2 1 2 2 1
Total operating expenses 4,110 5 10 4 787
OPERATING INCOME (4,110) (5) (10) (4) 1,382
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0
Other-net (7,192) 1,063 (11) 0 (121)
Total other deductions - net (7,192) 1,063 (11) 0 (121)
INCOME BEFORE INCOME TAXES (11,302) 1,058 (21) (4) 1,261
INCOME TAXES (3,508) 0 0 0 0
NET INCOME (LOSS) (7,794) 1,058 (21) (4) 1,261
RET. EARNINGS (DEF.) AT BEG. OF YEAR (12,412) 858 (57) (36) 231
DEDUCT:
Dividends 0 0 0 0 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($20,206) $1,916 ($78) ($40) $1,492
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 43
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION>
Werfa Mynydd Crete I Crete II Crete III Faeto
Cayman, Gordu Cayman, Cayman, Cayman, Cayman,
ASSETS Inc. Cayman, Inc. Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., 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
Mat'ls., supplies & fossil fuel inv. 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 0 32
Other 0 0 90 0 0 0
Total other assets 0 0 90 0 0 32
TOTAL ASSETS $0 $0 $90 $0 $0 $32
CAPITALIZATION
Common shareholders' equity ($1) ($39) ($13) ($3) ($7) $38
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization (1) (39) (13) (3) (7) 38
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & 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
Deferred clause revenue 0 0 0 0 0 0
Other 1 39 103 3 7 (6)
Total current liabilities 1 39 103 3 7 (6)
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Def. 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 liab. & def. credits 0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $0 $0 $90 $0 $0 $32
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 44
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION>
Werfa Mynydd Crete I Crete II Crete III Faeto
Cayman, Gordu Cayman, Cayman, Cayman, Cayman,
INCOME STATEMENT Inc. Cayman, Inc. Inc. Inc. Inc. 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 2 3 2 2 2 2
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 1 1 1 1 1 1
Total operating expenses 3 4 3 3 3 3
OPERATING INCOME (3) (4) (3) (3) (3) (3)
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 (3) (4) (3) (3) (3) (3)
INCOME TAXES 0 0 0 0 0 0
NET INCOME (LOSS) (3) (4) (3) (3) (3) (3)
RET. EARNINGS (DEF.) AT BEG. OF YEAR (157) (503) (698) (291) (286) (204)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($160) ($507) ($701) ($294) ($289) ($207)
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 45
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION>
Monte San San FPL FPL FPL
Giorgio Bartolomeo Riva-Caleone Mamonal, TermoCandelaria Termovalle,
ASSETS Cayman, Inc. Cayman, Inc. Cayman, Inc. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $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 prop., 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
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 0 0 0 149 18 352
Total current assets 0 0 0 149 18 352
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 19 14 0 472 0 366
Other 0 0 0 0 0 0
Total other assets 19 14 0 472 0 366
TOTAL ASSETS $19 $14 $0 $621 $18 $718
CAPITALIZATION
Common shareholders' equity $32 $27 $0 $631 $43 $294
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 32 27 0 631 43 294
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 518
Customers' deposits 0 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0 0
Other (13) (13) 0 0 0 0
Total current liabilities (13) (13) 0 0 0 518
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 (10) (25) (94)
Def. 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 liab. & def. credits 0 0 0 (10) (25) (94)
TOTAL CAPITALIZATION AND LIABILITIES $19 $14 $0 $621 $18 $718
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 46
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION>
Monte San San FPL FPL FPL
Giorgio Bartolomeo Riva-Caleone Mamonal, TermoCandelaria Termovalle,
INCOME STATEMENT Cayman, Inc. Cayman, Inc. Cayman, Inc. Inc. Inc. 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 2 2 2 63 0 851
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 1 1 1 0 0 0
Total operating expenses 3 3 3 63 0 851
OPERATING INCOME (3) (3) (3) (63) 0 (851)
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 10 0 0
Total other deductions - net 0 0 0 10 0 0
INCOME BEFORE INCOME TAXES (3) (3) (3) (53) 0 (851)
INCOME TAXES 0 0 0 (26) (13) (352)
NET INCOME (LOSS) (3) (3) (3) (27) 13 (499)
RET. EARNINGS (DEF.) AT BEG. OF YEAR (136) (135) (6) (252) (56) (175)
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($139) ($138) ($9) ($279) ($43) ($674)
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 47
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Karaha Adjusting
Bodas FPL-I & FPL Group
Investment Brazil, Elim. International,
ASSETS Corp. LTDA. Entries Inc.
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Utility plant in ser. and other prop. $0 $89 $0 $8,809
Nuclear fuel under capital lease 0 0 0 0
Construction work in progress 0 0 0 0
Less accumulated depr. & amort. 0 0 0 (734)
Total prop., plant and eqpt.-net 0 89 0 8,075
CURRENT ASSETS
Cash and cash equivalents 0 7 0 2,845
Customer receivables - net 0 0 0 339
Mat'ls., supplies & fossil fuel inv. 0 0 0 0
Deferred clause expenses 0 0 0 0
Other 0 0 5,519 2,963
Total current assets 0 7 5,519 6,147
OTHER ASSETS:
Special use funds of FPL 0 0 0 0
Other investments (1,613) 0 (90,647) 31,928
Other 40,000 0 0 41,077
Total other assets 38,387 0 (90,647) 73,005
TOTAL ASSETS $38,387 $96 ($85,128) $87,227
CAPITALIZATION
Common shareholders' equity $38,387 $96 ($90,647) $80,652
Pref. stk. w/o sinking fund require. 0 0 0 0
Long-term debt 0 0 0 0
Total capitalization 38,387 96 (90,647) 80,652
CURRENT LIABILITIES
Short-term debt 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0
Accounts payable 0 0 0 709
Customers' deposits 0 0 0 0
Accrued interest and taxes 0 0 0 0
Deferred clause revenue 0 0 0 0
Other 0 0 5,519 8,405
Total current liabilities 0 0 5,519 9,114
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 (2,698)
Def. 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 0 0 0 159
Total other liab. & def. credits 0 0 0 (2,539)
TOTAL CAPITALIZATION AND LIABILITIES $38,387 $96 ($85,128) $87,227
</TABLE>
<TABLE>
FPL GROUP INTERNATIONAL, INC. 48
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Karaha Adjusting
Bodas FPL-I & FPL Group
Investment Brazil, Elim. International,
INCOME STATEMENT Corp. LTDA. Entries Inc.
<S> <C> <C> <C> <C>
OPERATING REVENUES $0 $0 $0 $2,169
OPERATING EXPENSES
Fuel, purchased power & interchange 0 0 0 0
Other operations and maintenance 55 2 (8) 5,337
Depreciation & amortization 0 0 0 553
Taxes other than income taxes 2 0 4 23
Total operating expenses 57 2 (4) 5,913
OPERATING INCOME (57) (2) 4 (3,744)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0
Other-net (4,446) 0 6,008 (4,689)
Total other deductions - net (4,446) 0 6,008 (4,689)
INCOME BEFORE INCOME TAXES (4,503) (2) 6,012 (8,433)
INCOME TAXES 0 0 0 (3,899)
NET INCOME (LOSS) (4,503) (2) 6,012 (4,534)
RET. EARNINGS (DEF.) AT BEG. OF YEAR 52 0 1,851 (12,412)
DEDUCT:
Dividends 0 0 0 0
Other 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($4,451) ($2) $7,863 ($16,946)
</TABLE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 49
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998 Telesat
Thousands of Dollars Telesat Cablevision
<CAPTION> Cablevision Cable Adjusting of South
of South Cable LP Cable & 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 ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 0 17 116 0 0 133
Customer receivables - net 0 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 24,418 0 6,584 94,310 (14,287) 111,025
Total current assets 24,418 17 6,700 94,310 (14,287) 111,158
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 32,800 0 0 20,500 (32,800) 20,500
Other 0 0 0 0 0 0
Total other assets 32,800 0 0 20,500 (32,800) 20,500
TOTAL ASSETS $57,218 $17 $6,700 $114,810 ($47,087) $131,658
CAPITALIZATION
Common shareholders' equity $15,946 $0 $6,700 $26,100 ($32,800) $15,946
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 15,946 0 6,700 26,100 (32,800) 15,946
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & 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
Deferred clause revenue 0 0 0 0 0 0
Other 14,269 17 0 0 (14,287) (1)
Total current liabilities 14,269 17 0 0 (14,287) (1)
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 27,003 0 0 88,710 0 115,713
Def. 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 liab. & def. credits 27,003 0 0 88,710 0 115,713
TOTAL CAPITALIZATION AND LIABILITIES $57,218 $17 $6,700 $114,810 ($47,087) $131,658
</TABLE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 50
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998 Telesat
Thousands of Dollars Telesat Cablevision
<CAPTION> Cablevision Cable Adjusting of South
of South Cable LP Cable & Florida,
Florida, LP I, (Pasco), LP III, Elim. 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 6,700 0 6,700 0 (6,700) 6,700
Total other deductions - net 6,700 0 6,700 0 (6,700) 6,700
INCOME BEFORE INCOME TAXES 6,700 0 6,700 0 (6,700) 6,700
INCOME TAXES 2,584 0 0 0 0 2,584
NET INCOME (LOSS) 4,116 0 6,700 0 (6,700) 4,116
RET. EARNINGS (DEF.) AT BEG. OF YEAR 2,766 9,066 0 (6,300) (2,766) 2,766
DEDUCT:
Dividends 0 0 0 0 0 0
Other 0 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR $6,882 $9,066 $6,700 ($6,300) ($9,466) $6,882
</TABLE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 51
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars Telesat
<CAPTION> Cablevision Adjusting Telesat
Telesat Mayberry of South & 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 ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents (2) 1 133 0 132
Customer receivables - net 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0
Other (78,147) 0 111,025 0 32,878
Total current assets (78,149) 1 111,158 0 33,010
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0
Other investments (4,552) 35,401 20,500 (51,348) 1
Other 0 0 0 0 0
Total other assets (4,552) 35,401 20,500 (51,348) 1
TOTAL ASSETS ($82,701) $35,402 $131,658 ($51,348) $33,011
CAPITALIZATION
Common shareholders' equity ($43,008) $35,402 $15,946 ($51,348) ($43,008)
Pref. stk. w/o sinking fund require. 0 0 0 0 0
Long-term debt 0 0 0 0 0
Total capitalization (43,008) 35,402 15,946 (51,348) (43,008)
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0
Cur. matur. of ltd. & pref. stock 0 0 0 0 0
Accounts payable 0 0 0 0 0
Customers' deposits 0 0 0 0 0
Accrued interest and taxes 0 0 0 0 0
Deferred clause revenue 0 0 0 0 0
Other 1 0 (1) 0 0
Total current liabilities 1 0 (1) 0 0
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes (39,694) 0 115,713 0 76,019
Def. 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 liab. & def. credits (39,694) 0 115,713 0 76,019
TOTAL CAPITALIZATION AND LIABILITIES ($82,701) $35,402 $131,658 ($51,348) $33,011
</TABLE>
<TABLE>
TELESAT CABLEVISION, INC. AND SUBSIDIARIES 52
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars Telesat
<CAPTION> Cablevision Adjusting Telesat
Telesat Mayberry of South & 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 95 0 0 0 95
Depreciation & amortization 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0
Total operating expenses 95 0 0 0 95
OPERATING INCOME (95) 0 0 0 (95)
OTHER INCOME (DEDUCTIONS):
Interest charges (9) 0 0 0 (9)
Preferred stock dividends - FPL 0 0 0 0 0
Other-net 5,701 1,613 6,700 (5,689) 8,325
Total other deductions - net 5,692 1,613 6,700 (5,689) 8,316
INCOME BEFORE INCOME TAXES 5,597 1,613 6,700 (5,689) 8,221
INCOME TAXES (31) 40 2,584 0 2,593
NET INCOME (LOSS) 5,628 1,573 4,116 (5,689) 5,628
RET. EARNINGS (DEF.) AT BEG. OF YEAR (30,663) 803 2,766 (3,569) (30,663)
DEDUCT:
Dividends 0 1,625 0 (1,625) 0
Other 0 0 0 0 0
RET. EARNINGS (DEF.) AT END OF YEAR ($25,035) $751 $6,882 ($7,633) ($25,035)
</TABLE>
<TABLE>
HJT HOLDINGS & LCR HOLDINGS AND SUBSIDIARIES 53
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting
EMB SRM HJT LCR & 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 ser. and other prop. $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 prop., plant and eqpt.-net 0 0 0 0 0 0
CURRENT ASSETS
Cash and cash equivalents 2,247 2 6 6 0 2,261
Customer receivables - net 0 0 0 0 0 0
Mat'ls., supplies & fossil fuel inv. 0 0 0 0 0 0
Deferred clause expenses 0 0 0 0 0 0
Other 51,433 34 25 40 (74) 51,458
Total current assets 53,680 36 31 46 (74) 53,719
OTHER ASSETS:
Special use funds of FPL 0 0 0 0 0 0
Other investments 335,004 388,770 40 388,727 (777,537) 335,004
Other 0 0 0 0 0 0
Total other assets 335,004 388,770 40 388,727 (777,537) 335,004
TOTAL ASSETS $388,684 $388,806 $71 $388,773 ($777,611) $388,723
CAPITALIZATION
Common shareholders' equity $388,770 $388,766 $39 $388,729 ($777,536) $388,768
Pref. stk. w/o sinking fund require. 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0
Total capitalization 388,770 388,766 39 388,729 (777,536) 388,768
CURRENT LIABILITIES
Short-term debt 0 0 0 0 0 0
Cur. matur. of ltd. & 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 (86) 0 0 0 0 (86)
Deferred clause revenue 0 0 0 0 0 0
Other 0 40 32 44 (75) 41
Total current liabilities (86) 40 32 44 (75) (45)
OTHER LIABILITIES AND DEFERRED CREDITS
Accumulated deferred income taxes 0 0 0 0 0 0
Def. 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
0 0 0 0 0 0
TOTAL CAPITALIZATION AND LIABILITIES $388,684 $388,806 $71 $388,773 ($777,611) $388,723
</TABLE>
<TABLE>
HJT HOLDINGS & LCR HOLDINGS AND SUBSIDIARIES 54
CONSOLIDATING STATEMENTS OF INCOME AND
RETAINED EARNINGS
DECEMBER 31, 1998
Thousands of Dollars
<CAPTION> Adjusting
EMB SRM HJT LCR & 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 19 6 6 6 0 37
Depreciation & amortization 0 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0 0
Total operating expenses 19 6 6 6 0 37
OPERATING INCOME (19) (6) (6) (6) 0 (37)
OTHER INCOME (DEDUCTIONS):
Interest charges 0 0 0 0 0 0
Preferred stock dividends - FPL 0 0 0 0 0 0
Other-net 34,882 22,660 3 22,653 (45,316) 34,882
Total other deductions - net 34,882 22,660 3 22,653 (45,316) 34,882
INCOME BEFORE INCOME TAXES 34,863 22,654 (3) 22,647 (45,316) 34,845
INCOME TAXES 12,202 0 (2) (4) 0 12,196
NET INCOME (LOSS) 22,661 22,654 (1) 22,651 (45,316) 22,649
RET. EARNINGS (DEF.) AT BEG. OF YEAR 22,688 22,691 768 21,919 (45,378) 22,688
DEDUCT:
Dividends 0 0 0 0 0 0
Other (5) 0 768 (768) 5 0
RET. EARNINGS (DEF.) AT END OF YEAR $45,354 $45,345 ($1) $45,338 ($90,699) $45,337
</TABLE>
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.
- - Port 95 Commerce Park Association, Inc.
- - BAC Investment Corp.
- - Alpha Joshua (Prime), Inc.
- - Alpha Mariah (Prime), Inc.
- - Beta Mariah (Prime), Inc.
- - Beta Willow (Prime), Inc.
- - ESI Australia II, Inc.
- - Eastern Pacific Enterprises, Inc.
- - Cannon Power Corporation
- - Ridgetop Energy, LLC
- - CPC I, Inc.
- - Cannon Turbines, Inc.
- - ESI Chesapeake Power, Inc.
- - Hawkeye Power Partners, LLC
- - ESI New Bedford LLC
- - ESI New Jersey Energy GP, Inc.
- - ESI Ormesa IH Resource LLC
- - ESI Philippines, Inc.
- - ESI Prairie Winds GP, LLC
- - ESI Prairie Winds LP, LLC
- - FPL Energy Altamonte Acquisitions LLC
- - FPL Energy Coldwater Creek, LLC
- - FPL Energy Doswell Holdings, Inc.
- - FPL Energy Doswell Funding Corporation
- - Doswell Funding Corporation
- - FPL Energy East Mesa LLC
- - FPL Energy Geo East Mesa Partners, Inc.
- - Gem Resource, LLC
- - FPL Energy Geysers LLC
- - FPL Energy Marcus Hook, Inc.
- - FPL Energy Marcus Hook LLC
- - FPL Energy MH50 GP, LLC
- - FPL Energy MH50 LP, LLC
- - FPL Energy Solar Funding Corp.
- - FPL Energy Caithness Funding Corporation
- - High Desert Land Acquisition LLC
- - NG Acquisition LLC
- - Nevada Geothermal Holdings L.L.C.
- - Philadelphia Refinery Generation, LLC
- - FPL Energy Maine, Inc.
- - FPL Energy Avec LLC
- - FPL Energy Mason LLC
- - FPL Energy Maine Hydro LLC
- - FPL Energy Wyman LLC
- - FPL Wyman IV LLC
- - FPL Energy East Mesa Holdings LLC
- - FPL Energy Power Marketing, Inc.
- - FPL Energy Brazil I, LLC
- - FPL Energy Brazil II, LLC
- - FPL Group Argentina, Inc.
- - FPL Group International Brazil (Cayman) I, Inc.
- - FPL Group International Brazil (Cayman) II, Inc.
- - Java Geothermal Company LLC
- - Karaha Bodas Company LLC
- - Square Lake Holdings, Inc.
- - FPL Thermal Systems, Inc.
- - FPL Group Holdings 1, Inc.
- - FPL Group Holdings 2, Inc.
- - Group Capital Services, Inc.
- - Cable GP, Inc.
- - Cable LP II, Inc.
- - Praxis Group, Inc.
- - Qualtec Professional Services, 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 $5.6 million and $.3
million, respectively, at December 31, 1998.
3. Dissolutions and Name Changes of Subsidiaries
ESI/Caithness Cannon Acquisitions LLC, Hyperion Investments LLC , ESI San
Emidio, Inc. and MBR Services, Inc. were dissolved in 1998.
The following name changes were made in 1998:
ESI Calistoga Power Services, Inc. to FPL Energy Calistoga Power Services, Inc.
ESI Dominican Republic, Inc. to FPL Energy Geo East Mesa Partners, Inc.
ESI Doswell Power Services, Inc. to FPL Energy Doswell Power Services, Inc.
ESI Panama, Inc. to Harper Lake Management, Inc.
ESI Virginia Power Services, Inc. to FPL Energy Virginia Power Services, Inc.
ESI Energy Operating Services, Inc. to FPL Energy Operating Services, Inc.
ESI Brady Power Services, Inc. to FPL Energy Power Services, Inc.
Claimant has caused this statement to be duly executed on its behalf by its
authorized officer this 26th day of February, 1999.
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
EXHIBIT B
The Financial Data Schedule is included as Exhibit 27 at the conclusion of
this document.
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
** FPL Energy, 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.
At December 31, 1998, 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%.
FPL Group, Inc. (Claimant)
* FPL Group Capital Inc
** FPL Energy, Inc.
*** ESI Energy, Inc.
**** ESI Vansycle GP, Inc.
**** ESI Vansycle LP, Inc.
At December 31, 1998, ESI Vansycle GP, Inc., and ESI Vansycle LP, Inc., each
owned a partnership interest in ESI Vansycle Partners, L.P., an EWG. These
interests in the aggregate equal 100%.
APPENDIX 1
SUBSIDIARIES OF FPL GROUP, INC.
December 31, 1998
<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 II, Inc. Florida Miami Develops energy management systems for
commercial, industrial and institutional
companies.
*KPB Financial Corp. Delaware Wilmington Manages financial assets.
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.
**Port 95 Commerce Park Florida Juno Beach Manages property.
Association, Inc.
*CAS Investments, Inc. Delaware Wilmington Owns investment securities.
*FPL Energy, Inc. Florida Juno Beach Participates in energy market and clean
fuel generation.
**BAC Investment Corp. Delaware Wilmington Manages intangible assets.
**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 Inactive.
***Alpha Mariah (Prime), Inc. California North Palm Beach Inactive.
***Beta Mariah (Prime), Inc. California North Palm Beach Inactive.
***Beta Willow (Prime), Inc. California San Francisco Inactive.
***East Mesa Geothermal LLC Delaware Juno Beach Enter into agreements relating to projects.
***ESI Altamont Acquisitions, Inc. Florida North Palm Beach Participates in a wind power project.
***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 Participates in a wind power project.
***ESI Brady, Inc. Florida North Palm Beach Participates in a geothermal project.
***ESI California Holdings, Inc. California North Palm Beach Holding company.
****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 Cannon Acquisitions LLC Delaware Juno Beach Participates in wind power projects.
*****CPC I, Inc. California Juno Beach Participates in a wind power project.
*****Ridgetop Turbines, Inc. California Juno Beach Participates in wind power projects.
***ESI Cherokee GP, Inc. Florida North Palm Beach Participates in a combined cycle natural
gas project.
***ESI Cherokee LP, Inc. Florida North Palm Beach Participates in a combined cycle natural
gas project.
***ESI Cherokee Holdings, Inc. Florida North Palm Beach Participates in a combined cycle natural
gas project.
****ESI Cherokee MGP, Inc. Florida North Palm Beach Participates in a combined cycle natural
gas project.
***ESI Chesapeake Power, Inc. Florida North Palm Beach Formed to acquire interest in a power
plant.
***ESI Dixie Valley, Inc. Florida North Palm Beach Inactive.
***ESI Dixie Valley LP,Inc. Florida North Palm Beach Inactive.
***ESI Doswell, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
***ESI Doswell GP, Inc. Florida North Palm Beach Participates in combined cycle natural gas project
****Doswell-Hanover, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
*****Doswell I, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
***ESI Doswell GP II Florida North Palm Beach Participates in combined cycle natural gas project.
Holdings, Inc.
****ESI Doswell GP II, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
***ESI Doswell LP Holdings, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
****ESI DLP-LP Holdings, Inc. Florida North Palm Beach Participates in combined cycle natural gas project.
***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 Hawkeye Power, Inc. Florida Juno Beach Participates in a wind project.
****Hawkeye Power Partners, LLC Delaware Juno Beach Development of a wind 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 a project.
***ESI LP, Inc. Florida North Palm Beach Formed to invest in partnerships.
***ESI Mojave, Inc. Florida North Palm Beach Participates in a wind power project.
***ESI Mojave LLC Delaware North Palm Beach Participates in a wind power project.
****ESI Mojave 16/17/18 LLC Delaware Juno Beach Participates in 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 Participates in a wood-burning electric generating
project.
***ESI New Bedford LLC Delaware Juno Beach Development of gas-fired power plants.
***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 A funding corporation.
Funding, Inc.
***ESI Northeast Energy GP, Inc. Florida North Palm Beach Participate in combined cycle natural
gas project.
***ESI Northeast Energy LP, Inc. Florida North Palm Beach Participate in combined cycle natural
gas project.
***ESI Northeast Fuel Florida Juno Beach Fuel management services.
Management, Inc.
***ESI Ormesa Debt Holdings LLC Delaware Juno Beach Formed to acquire partnership interest.
***ESI Ormesa Holdings, Inc. Florida North Palm Beach Formed to acquire partnership interest.
***ESI Ormesa Holdings I LLC Delaware Juno Beach Participates in a geothermal project.
***ESI Ormesa IE Equity, Inc. Florida Juno Beach Participates in a geothermal project.
****ESI Ormesa Equity Holdings LLC Delaware Juno Beach Participates in a geothermal project.
***ESI Ormesa IE Resource LLC Florida Juno Beach Participates in a geothermal project.
***ESI Ormesa IH Resource LLC Delaware Juno Beach Holds assets of a geothermal project.
***ESI Philippines, Inc. Florida North Palm Beach Formed to pursue energy-related business
opportunities.
***ESI Pittsylvania, Inc. Florida North Palm Beach Participates in a wood-burning electric
generating project.
***ESI Prairie Winds GP, LLC Delaware North Palm Beach Inactive.
***ESI Prairie Winds LP, LLC Delaware North Palm Beach Inactive.
***ESI SEMASS Corp. LP, Inc. Florida North Palm Beach Participates in a waste to energy
project.
***ESI Sierra, Inc. Florida North Palm Beach Participates in a natural gas project.
***ESI Silverado Delaware LLC Delaware North Palm Beach Holding company for a steam project.
****ESI Silverado Holdings LLC Delaware North Palm Beach Holding company for a steam project.
*****Silverado Geothermal California North Palm Beach Holds a steam sales agreement.
Resources, Inc.
***ESI Steamboat, Inc. Florida North Palm Beach Formed to service a loan.
***ESI Tehachapi Acquisitions, Florida Juno Beach Participates in wind power projects.
Inc.
***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 Juno Beach Participates in a wind power project.
***ESI West Enfield, Inc. Florida Juno Beach Inactive.
***ESI West Texas Energy, Inc. Florida Juno Beach Participates in a wind power project.
****West Texas Wind Energy Delaware Juno Beach Participates in a wind power project.
Partners, LLC
***ESI WTE Development, Inc. Florida North Palm Beach Participates in a waste to energy
project.
***FPL Energy Altamonte Delaware Santa Rosa Participates in a wind power project.
Acquisitions LLC
***FPL Energy Coldwater Creek, Delaware Juno Beach Participates in a geothermal project.
LLC
***FPL Energy Doswell Holdings, Florida Juno Beach Hold stock in combined cycle gas-fired
Inc. project.
****FPL Energy Doswell Funding Delaware Wilmington Formed to finance combined cycle gas-fired
Corporation project.
****Doswell Funding Corporation Florida Juno Beach Inactive.
***FPL Energy East Mesa Holdings Delaware Juno Beach Participates in geothermal project.
LLC
***FPL Energy Geo East Mesa Florida Juno Beach Participates in geothermal project.
Partners, Inc.
***FPL Energy Everett LLC Delaware Juno Beach Develop and construct combined cycle
natural gas project.
***FPL Energy Everett L.L.C. Florida Juno Beach Develop and construct combined cycle
natural gas project.
***FPL Energy Geysers LLC Delaware Juno Beach Formed to acquire geothermal assets.
***FPL Energy Marcus Hook, Inc. Florida Juno Beach Develop combined cycle natural gas projects.
****FPL Energy Marcus Hook LLC Delaware Juno Beach Develop combined cycle natural gas projects.
***FPL Energy MH50 GP, LLC Delaware Juno Beach Develop combined cycle natural gas projects.
***FPL Energy MH50 LP,LLC Delaware Juno Beach Develop combined cycle natural gas projects.
***FPL Energy Operating Florida North Palm Beach Provides operating and maintenance services and
Services, Inc. fuel procurement for projects.
****FPL Energy Brady Power Florida North Palm Beach Provides operating services for a geothermal
Services, Inc. project.
****FPL Energy Calistoga Power Florida North Palm Beach Operating and maintenance company for a
Services, Inc. geothermal project.
****FPL Energy CO2 Operations, Florida Juno Beach Participates in combined cycle gas-fired
Inc. electric generation.
****FPL Energy Doswell Power Florida North Palm Beach Provides operating and maintenance services for
Services, Inc. a power project.
****FPL Energy Virginia Power Florida North Palm Beach Participates in operation and maintenance
Services, Inc. services at projects.
***FPL Energy Solar Funding Corp. Florida Juno Beach Holds stock in a solar electric generating
system project.
****FPL Energy Caithness Funding Delaware Juno Beach Financed a solar electric generating
Corporation system project.
***FPL Energy Vansycle LLC Florida Juno Beach Participates in a wind powered project.
***FPL Investments Inc. Florida North Palm Beach Manages a leveraged lease portfolio.
***Harper Lake Acquisitions, Inc. Florida North Palm Beach Formed to acquire assets of a solar
electric generating system.
***Harper Lake Holdings, Inc. Florida North Palm Beach Formed to acquire senior debt of a solar
electric generating system.
***Harper Lake Management, Inc. Florida Delaware Acquired assets of a solar electric
generating system.
***Harper Lake Operations, Inc. California North Palm Beach Operates a solar electric generating
system.
***High Desert Land Acquisition Delaware Juno Beach Purchased asets of a solar electric
LLC 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.
***MES Financial Corp. Delaware Wilmington Manages financial assets.
***NG Acquisition LLC Florida Juno Beach Inactive.
****Nevada Geothermal Holdings Florida Juno Beach Participates in a geothermal project.
L.L.C.
***Northern Cross Investments, Delaware North Palm Beach Holds the stock notes of a solar electric
Inc. generating project.
***Philadelphia Refinery Delaware Juno Beach Development of a potential project.
Generation, LLC
***Sullivan Street Investments, Delaware North Palm Beach Holds the stock notes of a solar electric
Inc. generating project.
**FPL Energy Maine, Inc. Delaware Juno Beach To acquire generation assets of a power
company.
***FPL Energy Avec LLC Delaware Juno Beach To acquire ownership of a power company.
***FPL Energy Mason LLC Delaware Juno Beach To acquire ownership of a power company.
***FPL Energy Maine Hydro LLC Delaware Juno Beach To acquire ownership of a power plant.
***FPL Energy Wyman LLC Delaware Juno Beach To acquire ownership of a power plant.
***FPL Wyman IV LLC Delaware Juno Beach To acquire ownership of a power plant.
**FPL Energy East Mesa Holdings Delaware Juno Beach Holds assets of a geothermal project.
LLC
**FPL Energy Power Marketing, Inc. Florida Juno Beach Market retail power.
**FPL Group International, Inc. Florida Juno Beach Participates in international power projects.
***Crete I Cayman, Inc. Cayman Cayman Islands Participates in a wind power project.
Islands,
B.W.I.
***Crete II Cayman, Inc. Cayman Cayman Islands Participates in a wind power project.
Islands,
B.W.I.
***Crete III Cayman, Inc. Cayman Cayman Islands Participates in a wind power project.
Islands,
B.W.I.
***Faeto Cayman, Inc. Cayman Cayman Islands Participates in a wind power project.
Islands,
B.W.I.
***FPL Energy Brazil I, LLC Delaware Juno Beach Inactive.
***FPL Energy Brazil II, LLC Delaware Juno Beach Inactive.
***FPL Group Argentina, Inc. Florida North Palm Beach International power projects.
***FPL Group International Florida North Palm Beach Inactive.
South America, Inc.
****FPL Group International Cayman Cayman Islands International power projects.
Brazil (Cayman) I, Inc. Islands,
B.W.I.
*****FPL-I Brasil, LTDA. Brazil Brazil Participates in a power project.
****FPL Group International Cayman Cayman Islands International power projects.
Brazil (Cayman) II, Inc. Islands,
B.W.I.
***FPL Group International Florida North Palm Beach Inactive.
South America II, Inc.
***FPL International Cayman Cayman Islands International power projects.
Holdings, Inc. Islands,
B.W.I.
***FPL International Holdings Cayman Cayman Islands International power projects.
II, Inc. Islands,
B.W.I.
****Owenreagh Cayman Power Cayman Cayman Islands International power projects.
Partners, LLC Islands,
B.W.I.
***FPL International Investment Cayman Cayman Islands International power projects.
Company Islands,
B.W.I.
***FPL Mamonal, Inc. Florida North Palm Beach Participates in international
power projects.
***FPL TermoCandelaria, Inc. Florida North Palm Beach Participates in international
power projects.
***FPL Termovalle, Inc. Florida North Palm Beach Participates in international
power projects.
***Karaha Bodas Investment Corp. Cayman Cayman Islands Participates in a geothermal project.
Islands,
B.W.I.
***Monte San Giorgio Cayman, Inc. Cayman Cayman Islands Participates in a wind power project.
Islands,
B.W.I.
***Mynydd Gordu Cayman, Inc. Cayman Cayman Islands Participates in international power projects.
Islands,
B.W.I.
***Owenreagh Cayman, Inc. Cayman Cayman Islands Participates in international power projects.
Islands,
B.W.I.
***Riva-Caleone Cayman, Inc. Cayman Cayman Islands Participates in international power projects.
Islands,
B.W.I.
***San Bartolomeo Cayman, Inc. Cayman Cayman Islands Participates in international power projects.
Islands,
B.W.I.
***Werfa Cayman, Inc. Cayman Cayman Islands Participates in international power projects.
Islands,
B.W.I.
**Square Lake Holdings, Inc. Delaware Juno Beach Set up to acquire a project.
*FPL Energy Services, Inc. Florida Miami Formed to provide ongoing services to
implement energy programs.
**FPL Thermal Systems, Inc. Florida Juno Beach Build, own and operate district cooling
facilities.
*FPL Group Holdings 1, Inc. Florida Juno Beach Inactive.
*FPL Group Holdings 2, Inc. Florida June Beach Inactive.
*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
Holdings, Inc. Bank.
***Bay Loan and Investment Bank Rhode Providence Holds commercial and consumer loans and time
Island deposits. Bay Loan was reclassified to
discontinued operations in 1991; therefore
no financial statements are presented.
*Group Capital Services, Inc. Florida Juno Beach Formed to participate in a project.
*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.
*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 Juno Beach Participates in a television joint venture.
*Turner Foods Corporation Florida Punta Gorda Holding company.
**AMS Realty, Inc. Florida Punta Gorda Inactive.
**Turner Corporation Florida Immokalee Inactive.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CAPTION>
This schedule contains summary financial information extracted from FPL
Group's consolidated balance sheet as of December 31, 1998 and consolidated
statement of income for the twelve months ended December 31, 1998 and is
qualified in its entirety by reference to such financial statements.
<S> <C>
<NAME> FPL Group, Inc.
<CIK> 0000753308
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> DEC-31-1998
<PERIOD-TYPE> 12-MOS
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> $12,028,813
<TOTAL-OPERATING-REVENUES> $6,660,569
<NET-INCOME> $664,464
</TABLE>
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