Florida Power & Light Company today announced that it has entered into a conditional settlement agreement that would resolve all of the litigation involving the Okeelanta and Osceola co-generation power plants located in Palm Beach County and save FPL's customers hundreds of millions of dollars.
The litigation, which dates back to January 1997, began when a dispute arose between FPL and the owners of the plants as to whether the plants had accomplished commercial operation by the date specified in the 30-year power purchase agreements obligating FPL to purchase the output of the plants. FPL filed a petition in a Florida circuit court for a declaratory judgment that FPL had no further obligation under the agreements, and shortly thereafter the owners of the plants filed for bankruptcy protection.
Under the terms of the settlement, which is subject to approval by the bankruptcy court and the Florida Public Service Commission, the trustee for the holders of $288.5 million of tax exempt bonds that financed the construction of the plants would receive $222.5 million plus some security deposits to be distributed as directed by the bankruptcy court, and the power purchase agreements would be terminated. FPL estimates the net present value of the savings to its customers from the settlement versus the payments that would have been due under the power purchase agreements to be in excess of $350 million.
Florida Power & Light Company is the principal subsidiary of FPL Group, Inc.
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SOURCE: Florida Power & Light Company
Contact: Media Relations, Duty Officer, 305-552-3888 or Investor
Relations, Lisa Kuzel, 561-694-6497 both of FPL Group, Inc.