Fitch Affirms FPL Group, Florida Power & Light, FPL Group Capital After Duane Arnold Announced Acquisition.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has affirmed the ratings of FPL Group, Inc (FPL), Florida Power & Light Company (FP&L), and FPL Group Capital (Group Capital) following today's announcement of the acquisition of a 70% equity interest in the 598 MW Duane Arnold nuclear plant from Interstate Power and Light Co., a subsidiary of Alliant Energy Alliant Energy Corporation (NYSE: LNT) is a public utility holding company that incorporated in Madison, Wisconsin in 1981. It is comprised of several subsidiaries: [1] Corporation, for $387 million. (For a complete list of ratings affected, see the list below). The other two co-owners of the plant, Central Iowa Power Cooperative (20%) and Corn Belt Corn Belt, major agricultural region of the U.S. Midwest where corn acreage once exceeded that of any other crop. It is now commonly called the Feed Grains and Livestock Belt. Power Cooperative (10%), will continue to own the remaining 30% interest. The plant is subject to a performance-based power purchase agreement that extends to 2014 that coincides with the expiration of the plant's nuclear operating license. Currently, the plant is operated by Nuclear Management Company, but FPL will assume management and operations following completion of the acquisition. In addition, FPL will assume responsibility for decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
The ratings affirmation and Stable Outlook reflect Fitch's belief that the acquisition will be financed in a manner that will maintain or improve FPL's current capital structure and credit quality. Prior acquisitions and new generation construction projects were funded with a substantial equity component. The rating affirmation also recognizes stable cash flows associated with the plant's PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia as well as FPL's strong track record in operating nuclear power plants. The acquisition is subject to a number of state and federal approvals, including the Public Utility Commissions of Iowa, Illinois, Minnesota, and Wisconsin, the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ), and review by the Department of Justice or Federal Trade Commission and is expected to close by early 2006. FP&L is an integrated electric utility serving over four million predominantly residential and commercial customers along the eastern and lower western coasts of Florida. FPL Group Capital includes all of FPL Group's unregulated businesses, including merchant energy, energy marketing and trading, and telecommunications. Fitch affirms the following ratings with a Stable Rating Outlook: Florida Power & Light Company -- First mortgage bonds at 'AA-'; -- Unsecured pollution control revenue bonds at 'A+'; -- Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. at 'A'; -- Commercial paper at 'F1'. FPL Group Capital -- Senior unsecured debentures at 'A'; -- Commercial paper at 'F1'. FPL Group, Inc. -- Indicative rating at 'A'. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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