Earnings Conference Call

1
Earnings Conference Call

• Second Quarter 2005

2
Cautionary statements and risk factors that may
affect future results

• 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 1995. Actual results may differ
  materially from such forward-looking statements.
  A discussion of factors that could cause actual
  results or events to vary is contained in the
  Appendix herein and in the Companys SEC filings.

3
Overview of second quarter 2005

• Florida Power Light Company
• Continuation of mild weather
• Strong customer growth
• Martin and Manatee generation expansions brought
  in service on schedule and under budget
• FPL Energy
• Strong adjusted earnings growth despite Seabrook
  outage
• Continued improvement in merchant portfolio
• Negative mark on non-qualifying hedges reflects
  improving forward markets
• Portfolio additions (Gexa acquisition, new wind
  investments)
• FPL Group
• Reaffirm 2005 earnings expectation of 2.45 to
  2.551 per share

1 Assuming normal weather for the balance of the
year, excluding the cumulative effect of adopting
new accounting standards as well as the
mark-to-market effect of non-qualifying hedges,
neither of which can be determined at this time
4
FPL Group resultsSecond quarter
GAAP
Adjusted
EPS
EPS
Net Income ( millions)
Net Income ( millions)
255
251
257
0.71
0.69
0.66
203
0.52
04
04
04
04
05
05
05
05
See Appendix for reconciliation of GAAP to
adjusted amounts
5
Florida Power Light overview Second quarter

• Weather impact negative, driven by weaker weather
  in April and May
• Some unanticipated weakness due to underlying
  usage growth
• Customer growth remains strong
• Martin and Manatee plant generation expansions
  completed on schedule and under budget
• Decision on storm cost recovery
• Base rate case proceeding on schedule

6
Florida Power Light earnings Second quarter
EPS
Net Income Contribution ( millions)
0.57
205
0.52
201
05
04
04
05
7
FPL historical growth in customer accounts
(thousands)
1
1 Change in average customer accounts from prior
years second quarter
8
Retail sales at FPLSecond quarter
2.3 customer growth

(3.5) usage growth due to weather

(0.1) underlying usage growth and mix

(1.3) kWh sales growth

9
Weather Index

Degree days shown are cooling degree day (CDDs).
CDDs are based on average temperature of 72oF
negative values set to zero. Normal weather based
on 56 year average. Production figures shown
above are based on net energy for load. Energy
sales statistics shown in the July 22, 2005
earnings press release are net of line losses and
company usage.
10
FPL OM and DepreciationSecond quarter(
millions)
OM
Depreciation
319
316
232
227
05
04
05
04
Figures include amounts that are recovered
through cost recovery clauses which have no
impact on net income
11
FPL Earnings contribution driversSecond quarter

1 Including AFUDC, other revenues and share
dilution
12
Storm reserve deficiency recovery update

• Florida PSC voted to approve Staff recommendation
• 442 million to be collected through monthly
  surcharge
• 70 million to be capitalized
• 22 million deferred until accounting treatment
  determined
• Reinforces prior orders governing recovery of
  prudently incurred storm-related costs
• Leaves open some issues around future accounting
  methodology for recording restoration costs

13
2006 rate case key dates
June - July June 27 July 8 July 28 August 22
Sept. 2 Sept. 20 Oct. 28 Nov. 10 Nov. 14 Nov.
21 Nov. 30
Service hearings Intervenor testimony Staff
testimony Rebuttal testimony Hearings Briefs
due Staff rec. rev req. and rates Special agenda
rev. req. and rates Staff rec. revised
rates Special agenda revised rates Standard order

Dates are subject to change
14
FPL Energy Overview Second quarter

• Adjusted net earnings1 grew by more than 13
  during the quarter
• Excellent overall performance
• New wind assets
• 1st phase of Seabrook uprate completed, 52 net mw
  added
• Continued strengthening in forward markets
• Partially offset by lower wind resource and
  Seabrook refueling outage
• Ongoing positive impact of restructurings
• Losses on non-qualifying hedges reflect improving
  spark spreads
• Substantial increase in value of physical assets
• Good progress in hedging 2006
• Strengthening outlook for 2006 and 2007

1 See Appendix for reconciliation of GAAP to
adjusted amounts
15
FPL Energy results Second quarter
GAAP
Adjusted
EPS
Net Income ( millions)
Net Income ( millions)
EPS
72
69
63
0.19
0.19
0.17
20
0.05
04
04
04
04
05
05
05
05
See Appendix for reconciliation of GAAP to
adjusted amounts
16
FPL Energy earnings contribution driversSecond
quarter
1 Including share dilution and rounding See
appendix for reconciliation of GAAP to adjusted
amounts
17
Wind resource fundamentals Second quarter
Wind Speed Index 1
1 Average wind speed for the period from those
reference towers chosen to represent FPL Energys
portfolio - weighted index based on FPL Energys
portfolio as of 6/30/05 100 long-term historic
second quarter weighted average mean
18
FPL Energy monthly wind index1Current portfolio
1 Average wind speed for the period from those
reference towers chosen to represent FPL Energys
portfolio - weighted index based on FPL Energys
portfolio as of 6/30/05 100 long-term historic
monthly weighted average mean
19
Significantly improved market conditionsMarket
update
Change in
Change in
Cal 06
Cal 06 Forward
Cal 06 Forward
Forward
6/30/05
3/31/05 6/30/05
1/3/05 3/31/05
Natural Gas (/MMBTU) 1
7.99


0.30


1.61


NEPOOL 7x24 Power 2
71.24


2.34


12.18


NEPOOL Spark Spreads 3
19.41


1.32


0.96


ERCOT Spark Spreads 4
19.57


3.84


3.42


WECC Spark Spreads 5
24.76


(2.49)


5.36


1 NYMEX 2 Mass Hub 3 Mass Hub, Tetco M3 and 7,000
heat rate 4 ERCOT N, Houston Ship Channel and
7,000 heat rate 5 SP15, NGI SoCal and 7,000 heat
rate
20
Non-qualifying hedges 1Summary of activity (
millions, after-tax)
Asset/(Liability) Balance as of 3/31/05 Asset/(Liability) Balance as of 3/31/05 ( 9.1)
Amounts Realized During 2nd Quarter Amounts Realized During 2nd Quarter ( 5.8)
Change in Forward Prices (all positions) Change in Forward Prices (all positions) (46.4)
Subtotal Subtotal (52.2)

Asset/(Liability) Balance as of 6/30/05 Asset/(Liability) Balance as of 6/30/05 (61.3)
Primary Drivers Primary Drivers
Increase in ERCOT spark spreads (30.5) (30.5)
All other (primarily net short gas positions) (15.9) (15.9)
(46.4) (46.4)
1 Includes contracts of FPL Energys consolidated
projects plus its share of the contracts of
equity method investees
21
FPL Energy contract coverage2006
1 Weighted to reflect in-service dates, planned
maintenance and Seabrooks refueling outage and
power uprate and expected production from
renewable resource assets 2 Reflects
Round-the-Clock MW 3 Includes all projects with
mid- to long-term purchase power contracts for
substantially all of their output 4 Includes only
those facilities that require active hedging 5
Reflects on-peak MW Totals may not add due to
rounding and exclude pending Duane Arnold
acquisition
22
Portfolio transactions

• Acquired Gexa Corp.
• Wind additions 500-750 mw by year-end 05
• Weatherford Wind brought into service with 107
  mw of wind, total year-to-date to 221 mw
• Additional 250 mw announced
• On July 5, announced intent to purchase Duane
  Arnold Energy Center

23
Gexa Corp. acquisition

• Closed acquisition of fast-growing Texas retail
  energy provider on June 17
• Serves approximately 1,000 mws of peak load
  associated with over 125,000 small commercial and
  residential customers throughout Texas
• Financially attractive
• EPS 2 to 3 cents/year over next 5 years
  expected
• Significant synergies with FPL Energy Texas
  portfolio
• Hedge for Texas assets
• Green product marketing outlet for renewable
  energy
• Expands FPL Energy commercial and operational
  capabilities
• Provides balance to FPL Energys naturally long
  power position in ERCOT

24
Acquisition of Duane ArnoldEnergy Center

• Acquisition announced July 5 for 387 million
• Attractive economics
• Expect immediate earnings accretion
• Long-term power contract provides predictable and
  growing cash flow through contract period
• Low-cost baseload producer in Midwest market
• Complements FPL Energy wind portfolio in region
• Leverages FPLs nuclear expertise
• Opportunity to enhance operations from current
  levels
• Leverages successful Seabrook integration
• Builds nuclear scale
• Improves FPL Energy portfolio diversification

25
FPL Energy outlook strong

• 2005
• Likely to come in towards the high end of net
  income range of 245 to 275 million1,2
• 2006
• Initial net income range of 320 to 360 million
• 2007
• Updated net income range of 420 to 460 million

2006 and 2007 ranges reflect the anticipated
addition of Duane
Arnold Ranges are supported by current forward
curves
1 See Appendix for reconciliation of GAAP to
adjusted amounts 2 2005 estimate is based upon
FPL Energy EPS guidance given on July 22, 2005,
and excludes the cumulative effect of adopting
new accounting standards as well as the
mark-to-market effect of non-qualifying hedges,
neither of which can be determined at this time.
It is FPL Group's policy not to comment on
guidance during the quarter. FPL Energys 2006
and 2007 figures are indicative ranges and are
appropriate for this point in time but are not
based on detailed budgeting analysis. As a
result, they should only be taken into account in
conjunction with the Companys standard earnings
guidance
26
Earnings Per Share contributionsSecond quarter
See Appendix for reconciliation of GAAP to
adjusted amounts
27
2005 Outlook

• FPL
• Expect earnings contribution of 1.93 to 2.00
  per share assuming normal weather
• FPL Energy
• Expect earnings contribution of 0.65 to 0.73
  per share
• Corporate and Other
• Modestly negative results at FPL FiberNet
• Higher interest expense
• Net drag of 0.15 to 0.18 per share

EPS of 2.45 to 2.55 1
1 Assuming normal weather for the balance of the
year, excluding the cumulative effect of adopting
new accounting standards as well as the
mark-to-market effect of non-qualifying hedges,
neither of which can be determined at this time
28
QA Session
29
Appendix
30
FPL potential drivers of 2005 earnings
variability
See Safe Harbor Statement and SEC filings for
full discussion of risks
31
Florida ranks 1st in growth among most populous
states
State
of Population
CAGR
CAGR
of Population
in 2030
in 20041
2000-2030
2000-2004
5.9
2.1
Florida
2.0
7.9
1.6
9.2
7.7
1.9
Texas
1.1
12.8
12.2
1.5
California
0.3
3.7
4.3
0.6
Illinois
0.1
5.4
6.5
0.3
New York
0.9
1.1
United States
1 Estimated population by state as a percentage
of total U.S. population 2030 are based on
estimated population Source U.S. Census Bureau
32
FPL Energy potential drivers of 2005 earnings
variability
1 From historic mean
33
Non-qualifying hedges 1Summary of activity (
thousands, after-tax)
1 Includes contracts of FPL Energys consolidated
projects plus its share of the contracts of
equity method investees 2 12/31/04 balance has
been decreased 201 for the impact of changing
tax rate from 39.23 to FPL Energy Project
specific tax rates 3 Amount represents the change
in value of deals executed during the quarter
from the execution date through quarter end
34
Non-qualifying hedges 1Summary of forward
maturity ( thousands, after-tax)
1 Includes contracts of FPL Energys consolidated
projects plus its share of the contracts of
equity method investees 2 Gain/(loss) based on
existing contracts and forward prices as of
12/31/05
35
Non-Qualifying hedge exampleForward spark spread
sale

• FPL Energy enters into a forward sale in January
  2005 to "lock-in" gross margin
• Assumptions
• Volume 175 MW On Peak (358,400 MWh's)
• Term April - Sep '05
• Spark Spread 11 per MWh (3.94 million
  total value)
• At the end of each quarter, assume the market
  value of the spark spread changes to
• 1Q05 17 per MWh
• 2Q05 8 per MWh
• As the power is sold, FPLE will recognize the
  11.00 / MWh in contract spark spread and the
  unrealized mark-to-market will reverse.
• The table below illustrates the impact on
  Adjusted Earnings
  and GAAP Earnings in
  each period ( millions)

Cash revenues
Total
3Q '05
2Q '05
1Q '05
Non-cash"M-T-M" gains losses
Adjusted Earnings (Pre-Tax)
3.94
1.97
1.97
0.00
Non-Qualifying Unrealized
0.00
(0.54)
2.69
(2.15)
Gain/(Loss)
(see calculation in boxes below)
Extensive Earnings Volatility
3.94
1.43
4.66
(2.15)
GAAP Earnings (Pre-Tax)
179,200 x (17-11) 1.08 179,200 x (17-8)
1.61 2.69
358,400 x (11-17) (2.15)
179,200 x (8-11) (.54)
36
FPL Energy 2007 outlookCommon assumptions for
2006 and 2007
See Safe Harbor Statement and SEC filings for
full discussion of risks
37
Wind resource fundamentalsAnnual
Wind Speed Index 1
1 Average wind speed for the period from those
reference towers chosen to represent FPL Energys
portfolio - weighted index based on FPL Energys
portfolio as of 6/30/05 100 long-term historic
annual weighted mean
38
Bridging reference tower wind speed to earnings
impact

Correlation factor effect (tower to site) Wind shear derivation (convert lower level measured wind to predicted)

Air density assumption Turbine specific performance (power curve)

Availability Reliability Curtailments

Price paid by buyer
Reference Tower Wind Speed


Wind Turbine Hub Height Wind Speed

Theoretical Wind Turbine Output

Actual Wind Turbine Output

Earnings Per Share Contribution
1 in the annual portfolio wind index for 2005
equates to 0.02 to 0.03/share 1
1 Sets aside uncertainties that can cause actual
performance to deviate from that predicted solely
by using the wind data from the selected
reference towers. This reflects the impact on
projects that were fully in operation on 6/30/05
39
Regional Long Term Wind Reference Location
Jamestown
Walla Walla
Pipestone
Scranton
Pierre
Mason City
Lone Rock
Evanston
Concord
Johnstown
Livermore
Red Oak
Garden City
Bakersfield
Gage
Lancaster
Clinton
Palm Springs
Clovis
Abilene
Midland
Winkler
Denotes new references included to better
describe FPLE Wind Portfolio
FPL Energy plant operations
40
FPL Energy MWs and Regional Reference Towers
Second Quarter
Reference towers were selected for their
proximity to FPL Energys wind assets. FPL Energy
wind portfolio as of 6/30/05
41
Reconciliation of GAAP to Adjusted amountsThree
months ended June 30, 2004
42
Reconciliation of GAAP to Adjusted amountsThree
months ended June 30, 2005
43
Cautionary Statements And Risk Factors That May
Affect Future Results

• In connection with the safe harbor provisions of
  the Private Securities Litigation Reform Act of
  1995 (Reform Act), FPL Group, Inc. (FPL Group) is
  hereby providing cautionary statements
  identifying important factors that could cause
  FPL Group's actual results to differ materially
  from those projected in forward-looking
  statements (as such term is defined in the Reform
  Act) made by or on behalf of FPL Group in this
  press release, in presentations, in response to
  questions or otherwise.  Any statements that
  express, or involve discussions as to
  expectations, beliefs, plans, objectives,
  assumptions or future events or performance
  (often, but not always, through the use of words
  or phrases such as will likely result, are
  expected to, will continue, is anticipated,
  believe, could, estimated, may, plan, potential,
  projection, target, outlook) are not statements
  of historical facts and may be forward-looking.  F
  orward-looking statements involve estimates,
  assumptions and uncertainties.  Accordingly, any
  such statements are qualified in their entirety
  by reference to, and are accompanied by, the
  following important factors (in addition to any
  assumptions and other factors referred to
  specifically in connection with such
  forward-looking statements) that could cause FPL
  Group's actual results to differ materially from
  those contained in forward-looking statements
  made by or on behalf of FPL Group.
• Any forward-looking statement speaks only as of
  the date on which such statement is made, and FPL
  Group undertakes no obligation to update any
  forward-looking statement to reflect events or
  circumstances after the date on which such
  statement is made or to reflect the occurrence of
  unanticipated events.  New factors emerge from
  time to time and it is not possible for
  management to predict all of such factors, nor
  can it assess the impact of each such factor on
  the business or the extent to which any factor,
  or combination of factors, may cause actual
  results to differ materially from those contained
  in any forward-looking statement.
• The following are some important factors that
  could have a significant impact on FPL Group's
  operations and financial results, and could cause
  FPL Group's actual results or outcomes to differ
  materially from those discussed in the
  forward-looking statements
• FPL Group and its subsidiaries, Florida Power
  Light Company (FPL) and FPL Energy, LLC (FPL
  Energy) are subject to changes in laws or
  regulations, including the Public Utility
  Regulatory Policies Act of 1978, as amended
  (PURPA), the Public Utility Holding Company Act
  of 1935, as amended (Holding Company Act), the
  Federal Power Act, the Atomic Energy Act of 1954,
  as amended and certain sections of the Florida
  statutes relating to public utilities, changing
  governmental policies and regulatory actions,
  including those of the Federal Energy Regulatory
  Commission (FERC), the Florida Public Service
  Commission (FPSC) and the utility commissions of
  other states in which FPL Group has operations,
  and the U.S. Nuclear Regulatory Commission (NRC),
  with respect to, among other things, allowed
  rates of return, industry and rate structure,
  operation of nuclear power facilities, operation
  and construction of plant facilities, operation
  and construction of transmission facilities,
  acquisition, disposal, depreciation and
  amortization of assets and facilities, recovery
  of fuel and purchased power costs,
  decommissioning costs, return on common equity
  (ROE) and equity ratio limits, and present or
  prospective wholesale and retail competition
  (including but not limited to retail wheeling and
  transmission costs).  The FPSC has the authority
  to disallow recovery by FPL of any and all costs
  that it considers excessive or imprudently
  incurred.
• The regulatory process generally restricts
  FPL's ability to grow earnings and does not
  provide any assurance as to achievement of
  earnings levels.
• FPL Group, FPL Energy and FPL are subject to
  extensive federal, state and local environmental
  statutes, rules and regulations relating to air
  quality, water quality, waste management,
  wildlife mortality, natural resources and health
  and safety that could, among other things,
  restrict or limit the output of certain
  facilities or the use of certain fuels required
  for the production of electricity and/or require
  additional pollution control equipment and
  otherwise increase costs.  There are significant
  capital, operating and other costs associated
  with compliance with these environmental
  statutes, rules and regulations, and those costs
  could be even more significant in the future.

44
FPL Group and FPL operate in a changing market
environment influenced by various legislative and
regulatory initiatives regarding deregulation,
regulation or restructuring of the energy
industry, including deregulation of the
production and sale of electricity. FPL Group
and its subsidiaries will need to adapt to these
changes and may face increasing competitive
pressure. FPL Group's and FPL's results of
operations could be affected by FPL's ability to
renegotiate franchise agreements with
municipalities and counties in Florida. The
operation of power generation facilities involves
many risks, including start up risks, breakdown
or failure of equipment, transmission lines or
pipelines, use of new technology, the dependence
on a specific fuel source or the impact of
unusual or adverse weather conditions (including
natural disasters such as hurricanes), as well as
the risk of performance below expected or
contracted levels of output or efficiency.  This
could result in lost revenues and/or increased
expenses.  Insurance, warranties or performance
guarantees may not cover any or all of the lost
revenues or increased expenses, including the
cost of replacement power.  In addition to these
risks, FPL Group's, FPL Energys and FPL's
nuclear units face certain risks that are unique
to the nuclear industry including the ability to
store and/or dispose of spent nuclear fuel, as
well as additional regulatory actions up to and
including shutdown of the units stemming from
public safety concerns, whether at FPL Group's,
FPL Energys and FPL's plants, or at the plants
of other nuclear operators.  Breakdown or failure
of an FPL Energy operating facility may prevent
the facility from performing under applicable
power sales agreements which, in certain
situations, could result in termination of the
agreement or incurring a liability for liquidated
damages. FPL Group's, FPL Energys and FPL's
ability to successfully and timely complete their
power generation facilities currently under
construction, those projects yet to begin
construction or capital improvements to existing
facilities is contingent upon many variables and
subject to substantial risks.  Should any such
efforts be unsuccessful, FPL Group could be
subject to additional costs, termination payments
under committed contracts, and/or the write-off
of their investment in the project or
improvement. FPL Group and FPL use derivative
instruments, such as swaps, options, futures and
forwards to manage their commodity and financial
market risks, and to a lesser extent, engage in
limited trading activities. FPL Group could
recognize financial losses as a result of
volatility in the market values of these
contracts, or if a counterparty fails to perform.
In the absence of actively quoted market prices
and pricing information from external sources,
the valuation of these derivative instruments
involves management's judgment or use of
estimates. As a result, changes in the
underlying assumptions or use of alternative
valuation methods could affect the reported fair
value of these contracts. In addition, FPL's use
of such instruments could be subject to prudency
challenges and if found imprudent, cost recovery
could be disallowed by the FPSC. There are
other risks associated with FPL Energy.  In
addition to risks discussed elsewhere, risk
factors specifically affecting FPL Energy's
success in competitive wholesale markets include
the ability to efficiently develop and operate
generating assets, the successful and timely
completion of project restructuring activities,
maintenance of the qualifying facility status of
certain projects, the price and supply of fuel,
transmission constraints, competition from new
sources of generation, excess generation capacity
and demand for power.  There can be significant
volatility in market prices for fuel and
electricity, and there are other financial,
counterparty and market risks that are beyond the
control of FPL Energy.  FPL Energy's inability or
failure to effectively hedge its assets or
positions against changes in commodity prices,
interest rates, counterparty credit risk or other
risk measures could significantly impair FPL
Group's future financial results.  In keeping
with industry trends, a portion of FPL Energy's
power generation facilities operate wholly or
partially without long-term power purchase
agreements.  As a result, power from these
facilities is sold on the spot market or on a
short-term contractual basis, which may affect
the volatility of FPL Group's financial
results.  In addition, FPL Energy's business
depends upon transmission facilities owned and
operated by others if transmission is disrupted
or capacity is inadequate or unavailable, FPL
Energy's ability to sell and deliver its
wholesale power may be limited.
45
FPL Group is likely to encounter significant
competition for acquisition opportunities that
may become available as a result of the
consolidation of the power industry.  In
addition, FPL Group may be unable to identify
attractive acquisition opportunities at favorable
prices and to successfully and timely complete
and integrate them. FPL Group and FPL rely on
access to capital markets as a significant source
of liquidity for capital requirements not
satisfied by operating cash flows.  The inability
of FPL Group, FPL Group Capital Inc (FPL Group
Capital) and FPL to maintain their current credit
ratings could affect their ability to raise
capital on favorable terms, particularly during
times of uncertainty in the capital markets,
which, in turn, could impact FPL Group's and
FPL's ability to grow their businesses and would
likely increase interest costs. FPL Group's,
FPL Energys and FPL's results of operations are
affected by changes in the weather.  Weather
conditions directly influence the demand for
electricity and natural gas and affect the price
of energy commodities, and can affect the
production of electricity at wind and
hydro-powered facilities. FPL Groups and
FPLs results of operations can be affected by
the impact of severe weather which can be
destructive, causing outages and/or property
damage, and could require additional costs to be
incurred. At FPL, recovery of these costs is
subject to FPSC approval. FPL Group, FPL
Energy and FPL are subject to costs and other
effects of legal and administrative proceedings,
settlements, investigations and claims, as well
as the effect of new, or changes in, tax laws,
rates or policies, rates of inflation, accounting
standards, securities laws or corporate
governance requirements. FPL Group, FPL Energy
and FPL are subject to direct and indirect
effects of terrorist threats and
activities.  Generation and transmission
facilities, in general, have been identified as
potential targets.  The effects of terrorist
threats and activities include, among other
things, terrorist actions or responses to such
actions or threats, the inability to generate,
purchase or transmit power, the risk of a
significant slowdown in growth or a decline in
the U.S. economy, delay in economic recovery in
the United States, and the increased cost and
adequacy of security and insurance. FPL
Group's, FPL Energys and FPL's ability to obtain
insurance, and the cost of and coverage provided
by such insurance, could be affected by national,
state or local events as well as company-specific
events. FPL Group, FPL Energy and FPL are
subject to employee workforce factors, including
loss or retirement of key executives,
availability of qualified personnel, collective
bargaining agreements with union employees or
work stoppage. The issues and associated risks
and uncertainties described above are not the
only ones FPL Group may face.  Additional issues
may arise or become material as the energy
industry evolves.  The risks and uncertainties
associated with these additional issues could
impair FPL Group's businesses in the future.
46
(No Transcript)