1 Salomon Smith Barney Power & Merchant Energy Conference May 15, 2002 Salomon Smith Barney Power & Merchant Energy Conference May 15, 2002

Lew Hay Chairman and Chief Executive Officer Moray Dewhurst Chief Financial Officer

Safe Harbor Statement: Any statements made herein about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of Actual results may differ substantially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in FPL Group's 2001 SEC Form 10-K. 3

4 Growing, Top-Tier US Electric Company  21,682 mw  Operations in 20 states  4 million customers  $11.0 billion market capitalization

net income and EPS, excluding merger-related items and effects of FAS 133 Three Strong Businesses Net income:$792 m EPS growth:+7% Net income:$792 m EPS growth:+7% FPL Energy FPLFPL FPL FiberNet FPL GROUP $105 m +27% $695 m +8% $695 m +8% $15 m +80% $15 m +80%

6 Three Fundamental Attributes FPL Energy FPLFPL FPL FiberNet Financial Discipline Financial Discipline Operational Excellence Operational Excellence FPL GROUP Financial Strength Financial Strength

7 FPL Group  Solid, integrated electric company  Attractive growth opportunities in all three businesses FPL Energy FPLFPL FPL FiberNet Financial Discipline Financial Discipline Operational Excellence Operational Excellence FPL GROUP Financial Strength Financial Strength

8  Favorable customer mix  Strong customer growth  Operational excellence  Proven cost management  Constructive regulatory environment Premier Electric Utility Attractive financial returns

9  4 million customer accounts  Consistent strong growth –2.1% in customer accounts –1.1% in usage per customer  High percentage of residential & small commercial customers Attractive Customer Demographics Florida Power & Light Industry Average Residential Commercial Industrial Other 4% 3% 32% 33% 37% 56% 3% Customer Mix

10 Operational Excellence Industry Average Fossil Plant Availability St. Lucie 2 & 1 Turkey Point 4 & WANO Performance Index All U.S. Sites Data Source: Institute of Nuclear Power Operators (INPO) U.S. sites

11 Operational Excellence FPL = 36% better than average Service Reliability (2001 total outage time per customer; minutes) Industry Average FPL Cost Management (O&M $ per customer) FPL = 48% better than average Source: FERC Form 1 Excludes Fuel, Purchased Power & ECCR

12 Constructive Regulatory Environment  “Rate certainty” through end of 2005  Incentive-based agreement –no ROE limits

13 Revenue-Sharing Thresholds ($ millions) est. revenue*3,470 2/3 to customers3,5803,6803,7803, % to customers3,7403,8403,9404,040 * Retail base rate revenue, as filed in Minimum Filling Requirements.

14 Constructive Regulatory Environment  “Rate certainty” through end of 2005  Incentive-based agreement –no ROE limits –shareholders benefit from productivity improvements  Ability to reduce depreciation expense by up to $125 million per year  Limited support for deregulation  “Rate certainty” through end of 2005  Incentive-based agreement –no ROE limits –shareholders benefit from productivity improvements  Ability to reduce depreciation expense by up to $125 million per year  Limited support for deregulation

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16 Major US Wholesale Generator  Presence in 18 states  5,063 mw portfolio  Experience in developing, constructing, operating and acquiring power plants  Strong asset optimization team Major diversified wholesale electric generator which adds value by actively managing and trading energy commodities in conjunction with our assets

17 Northeast Mid-Atlantic 20% 28% 16% 36% West Regional Diversity Fuel Diversity Gas 46% 28% Wind Other 4% Oil 15% 7% Hydro Diversified Portfolio 5,063 Net MW in Operation Year-end 2001 Central

18 Northeast Mid-Atlantic 21% 26% 16% 37% West Regional Diversity Fuel Diversity Gas 59% 21% Wind Other 2% Hydro 3% 7% Oil Diversified Portfolio 11,588 Net MW in Operation Year-end 2004 Central Nuclear 9% Assumes addition of 1,000 mw of wind. Percentages may not add to 100% due to rounding Assumes addition of 1,000 mw of wind. Percentages may not add to 100% due to rounding.

19 Excluding non-recurring items and effects of FAS 133 Track Record of Consistent, Strong Earnings Growth ($ millions)

20 Disciplined Growth Strategy  Grow generation portfolio in prudent way –aggressive wind development –focused fossil development –pursuit of M&A opportunities  Optimize asset value –integrated operations, business management and marketing and trading capabilities  Hedge position via substantial contract coverage  Moderate risk by regional and fuel diversity  Manage portfolio actively

21 Achievable Growth Strategy 20%-30% Average Annual Earnings Growth Existing Portfolio Portfolio Build-out  Optimization of assets (5,063 mw)  4,000+ mw of announced gas- fired plants  Close Seabrook by YE 2002  1,000-2,000 mw of wind projects Assumes prices roughly equivalent to current market forwards

22 Achievable Growth Strategy Additional Greenfield Development Acquisitions  Focused on high contract coverage projects  Gas  Wind  Ranging from single plants to IPPs  Multiple fuels –gas –nuclear –wind –coal –hydro Additional Upside Potential 20%-30% Average Annual Earnings Growth Existing Portfolio Portfolio Build-out  Optimization of assets (5,063 mw)  4,000+ mw of announced gas- fired plants  Close Seabrook by YE 2002  1,000-2,000 mw of wind projects Assumes prices roughly equivalent to current market forwards

23 Wind Energy: Capitalizing on our Strength  Nearly 1,500 net mw in operation  Wind is profitable  We have a leading position  We can build projects faster and cheaper  We can operate with higher availability  1, ,000 mw of new wind projects by year-end 2003

24 Seabrook Acquisition  Attractive price  Plays to our strengths –superior operating skills –northeast trading expertise  Immediately accretive –1 - 4 cents in 2003 – cents avg. ‘03-’06 –accelerating thereafter  Attractive financial returns –strong cash flow –substantial NPV – % ROE Based on current forward price curves

25 Well-Hedged Position 2002 = 80% 2003 = 50% Committed mw Merchant mw

26 FPL FiberNet  Profitable niche business –despite poor telecom market  Great example of leveraging FPL skills

27 Three Fundamental Attributes FPL Energy FPLFPL FPL FiberNet Financial Discipline Financial Discipline Operational Excellence Operational Excellence FPL GROUP Financial Strength Financial Strength

28 7.1% average annual EPS growth rate Excluding nonrecurring items and effects of FAS 133 Financial Strength EPS Growth

29 Financial Strength  Strong balance sheet  Strong credit ratings –A = FPL Group  Strong cash flow –$1.4 billion 2001 operating cash flow

30  Healthy 3.7% yield  48% payout ratio allows for growth Earnings per share Dividends per share Financial Discipline Prudent Dividend Policy

31 FPL100% FPL Energy % Total FPL Group % (weighted average) Financial Discipline Well-Hedged Position Florida Power & Light FPL Energy Capacity % contracted: EPS Contribution % 2001

32 Marketing & Trading Serves Two Fundamental Purposes Marketing & Trading Risk Reduction Asset Optimization Risk Control

33 ERCOT Spark Spreads ($ per mwh) Current Forward Contract % under Spark SpreadSpark SpreadContract 2002 $9.58 $ % 2003 $7.48 $ %

34 Enhancing Profitability in ERCOT

35 Projected Capital Sources & Uses ($ billion) Operating cash flow less dividends Equity issuance Incremental debt capacity FPL commitments FPL Energy commitments Seabrook Additional wind $7.9 - $9.9 $8.2 - $10.2 $1.4 - $1.9 $1.3 - $2.0 $5.5 - $6.3 $1.0 - $2.0 $4.5 - $5.5 $0.8 $1.6 Sources Uses

36 Strong Rating Valuable, but not a Fixed Target Long-term goal: ‘A’ or equivalent… …subject to fluctuating agency standards Credit Rating Investment Grade Absolute goal - strong investment grade  Absolute goal - strong investment grade  Relative goal - upper band of peer group

37 Earnings Guidance for 2002  FPL approximately flat with 2001 –assuming normal weather  FPL Energy up % –reflects modest capacity growth and delay in PTC’s –reflects poor hydro conditions in 1st quarter –assumes no major changes in market prices  FPL Group EPS $ $4.82

38 Earnings Guidance for 2003 and Beyond  Expect FPL to return to strong underlying fundamentals –4%-5% average annual earnings growth  Continue to target average annual growth of 20% - 30% at FPL Energy FPL Group Average EPS Growth: 6% - 8%

39 Relative Low Risk, High Return FPL Group represents one of best combinations of risk, return and earnings growth among major electric companies Risk FPL Group Earnings Growth/ Return Low High

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