FPL Group Affiliate Signs Option Agreement With El Paso Corporation To Bring New Natural Gas Source To Florida.

Energy Editors/Business Editors

JUNO BEACH, Fla.--(BUSINESS WIRE)--Jan. 23, 2004

FPL Group, Inc. (NYSE:FPL) today announced FPL Group Resources LLC has entered into an option agreement with subsidiaries of El Paso Corporation to participate in the ownership of a Liquefied Natural Gas (LNG) terminal under development in the Bahamas and an associated pipeline that will transport natural gas from the terminal to Florida. FPL Group formed the new subsidiary last year to explore natural gas opportunities in the United States.

"As the demand for natural gas continues to increase in Florida and across the U.S., LNG is going to play an increasingly important role in providing long-term supply security in the fuel supply of the country," said Brad Williams, vice president, gas projects, for FPL Group Resources. "We believe that this project presents FPL Group Resources with a viable opportunity to bring added fuel supply diversity to Florida and offer Florida investor-owned utilities, municipalities and co-op's in the state enhanced reliability at competitive prices for their customers. There are numerous supply projects being proposed for Florida, and I expect that this project will have to prove itself to be the most efficient based on a competitive process."

Among other factors, the pace of the development and negotiation of numerous agreements, including operational permits, addressing Bahamian environmental concerns, and long-term commitments for a substantial percentage of the gas sales, will determine when and if FPL Group Resources exercises its option with El Paso.

The proposed terminal will be located on Grand Bahama Island. The proposed pipeline will make landfall at Riviera Beach and continue onshore nearly six miles along existing utility and roadway corridors and connect into the existing FGT pipeline system near the Florida Turnpike. Unlike the original proposal, there are no current plans to extend the proposed pipeline beyond the interconnection point with FGT.

FPL Group, with annual revenues of more than $9 billion, is nationally known as a high-quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4 million customer accounts in Florida. FPL Energy, LLC, an FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at http://www.FPLGroup.com, http://www.FPL.com and http://www.FPLEnergy.com.

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) and Florida Power & Light Company (FPL) are hereby filing cautionary statements identifying important factors that could cause FPL Group's or FPL'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 and FPL 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. Forward-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 or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.

Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake 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 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 and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:

-- FPL Group and FPL are subject to changes in laws or

regulations, including the Public Utility Regulatory Policies

Act of 1978, as amended (PURPA), and the Public Utility

Holding Company Act of 1935, as amended (Holding Company Act),

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 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 of 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 and FPL are subject to extensive federal, state and

local environmental statutes, rules and regulations relating

to air quality, water quality, waste management, 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 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.

-- 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.

-- 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 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 and FPL's nuclear units face certain risks

that are unique to the nuclear industry including the ability

to 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

and FPL's plants, or at the plants of other nuclear operators.

Breakdown or failure of an FPL Energy, LLC (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 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 and FPL could be

subject to additional costs, termination payments under

committed contracts, loss of production tax credits for wind

projects currently under construction 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 value of the reported fair value of these

contracts. In addition, FPL's use of such instruments could be

subject to prudency challenges by the FPSC and if found

imprudent, cost recovery disallowance.

-- There are other risks associated with FPL Group's non-rate

regulated businesses, particularly 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, 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 its 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.

-- 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

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 and FPL's results of operations can be 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. In addition,

severe weather can be destructive, causing outages and/or

property damage, which could require additional costs to be

incurred.

-- FPL Group 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 rates or policies, rates of inflation,

accounting standards, securities laws or corporate governance 

requirements.

-- FPL Group 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 U.S., and the

increased cost and adequacy of security and insurance.

-- FPL Group's and FPL's ability to obtain insurance, and the

cost of and coverage provided by such insurance, could be

affected by national events as well as company-specific

events.

-- FPL Group 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 and FPL 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 and FPL's businesses in the future.

Note to Editors: High-resolution logos and executive head shots are available for download at http://www.fpl.com/news/contents/logos.shtml .