Paul J. Evanson President Florida Power & Light Company Gabelli Asset Management Company 18 th Annual Conference May 17, 2003

2002 Recap Power margins collapsed Power market liquidity disappeared Credit dried up Almost everyone downgraded, many multiple times Multiple restructurings/layoffs More scandals - wash trades, etc. Lots of lawsuits - California, Enron, etc.

2003 Turmoil continues Merchant model out of favor Integrated utilities faring better Investors favoring demonstrated earnings clarity and performance P/E ratio and B/S strength increasingly correlated

Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02Dec-02 Jan-03 Feb-03 Mar-03 Stock Price Indexed to 3/30/2001 Merchant Generation Companies Take Beating (index of closing stock prices on last trading day of mo.) Merchants

Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02Dec-02 Jan-03 Feb-03 Mar-03 DJ Utility Index Outperforms (index of closing stock prices on last trading day of mo.) Dow Jones Utilities Index Merchants Stock Price Indexed to 3/30/2001

Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02Dec-02 Jan-03 Feb-03 Mar-03 Stock Price Indexed to 3/30/2001 Integrated Energy Firms Do Better (index of closing stock prices on last trading day of mo.) Integrateds Dow Jones Utilities Index Merchants

Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02Dec-02 Jan-03 Feb-03 Mar-03 Stock Price Indexed to 3/30/2001 (index of closing stock prices on last trading day of mo.) FPL Group Integrateds Dow Jones Utilities Index Merchants FPL Group - An Industry Leader

FPL Group Premier integrated utility (FPL) Successful wholesale generation business (FPL Energy) Strong balance sheet Substantial cash flow

Strong Financial Position Financial discipline Strong credit ratings –A2 / A - = FPL Gp Capital –Aa3 / A = Florida Power & Light Company Prudent dividend policy 1 FPL Group Debt to Cap Ratio = 49% with 80% equity credit for equity-linked securities 55 1

Florida Power & Light FPL Energy Corp. & Other 2003 Estimated Earnings Contribution % Vast Majority of Earnings Comes from Florida Power & Light

FPL Service Territory Jacksonville St. Augustine Daytona West Palm Beach Ft. Lauderdale Miami Tampa

Strong Customer Growth # of customer accounts (millions)

Favorable Customer Mix Residential Commercial Industrial Other FPL Industry Average 56% 38% 3% 3% 33% 32% 32% 3%

Successful Cost Management at FPL Operating expenses ($ per customer) Industry Average FPL Good

FPL Industry Average Good High Performing Fossil Fleet Equivalent Availability Factor (%)

FPL % FPL 95% FPL Outperforms U.S. Fossil Utilities Equivalent Availability Factor (%) 2001 Good

OSHA Incident Rate Down FPL Power Generation Business Unit Good

OSHA Rate Best Among Peers 2001 EEI Safety Survey FPL 2002 Good FPL

Service Unavailability Just Half Industry Average (minutes per customer)

FPL Residential Rates Low Comparisons of a 1,000 kWh residential bill.

Substantial Regulated Generation Fleet Nearly 21,000 MW of generating capability in Florida Diverse fuel mix Oil Natural Gas Nuclear Coal Purchased Power Energy Sources (by kWh produced)

Constructive Regulatory Environment Vertically integrated model –Rate of return regulation –Fuel, capacity and certain environmental charges directly passed through to customers Progressive regulatory agreement –accelerated depreciation program –revenue sharing agreement

26

Disciplined Wholesale Power Generation Business Low risk approach Low cost provider Industry leader in wind Asset optimization function Note: 1 Includes 550 MW of leased capacity in RI 7,274 1 net MW in operation

A Clean Energy Provider

Wind Energy: Unique Advantage U.S. market leader (40% share) Supported by policy trends –federal (production tax credits) –state (renewable mandates) Attractive financial characteristics

FPL Group: A Solid Investment Premier integrated utility serving a vibrant territory Growing wholesale generation business with lower risk profile Operational and environmental excellence Financial strength and discipline Proven track record

Florida Power & Light Co. ($ millions) 2002 Revenues $ 7,378 Fuel and purchased power ( 3,306) Operating expenses ( 1,225) EBITDA 2,847 Depreciation (831) Interest & Other (874) Income Taxes (425) Net Income $ 717

A Valuation of Florida Power & Light (in millions, except multiple and per share valuation) EBITDA$ 2,847 Industry Multiple5 Enterprise Value$14,235 Less Debt and Preferred$ 3,312 Value of Equity$10,923 Valuation Per Share $ 60