Florida Power & Light Company today projected a 20 percent generating reserve margin for this summer, thereby assuring its customers that there would be a sufficient supply of electricity this summer.

The projections were part of an annual report that FPL filed with the Florida Public Service Commission, which outlines new FPL power plants entering service this year, in construction and nearing completion, or planned for the future. The plan also includes purchases of power and demand-side management and conservation programs.

"Unlike California, Florida customers enjoy an adequate supply of electricity," said FPL President Paul Evanson. "Our expansion program reflects our commitment to maintain sufficient reserves, while remaining one of the cleanest utilities in the country."

Each year FPL's update to the commission looks at the present and 10 years into the future. Adjustments are made from year to year based on customer use, growth and other forecast factors. The ten-year period 2001-2010 calls for an increase in capacity resources of 33 percent, all using environmentally friendly natural-gas technology.

During that same period FPL expects to add about 700,000 customers. The primary planning change from last year is a forecasted need for six rather than three future FPL power plants as a result of increased customer growth and usage, and the expiration of certain power purchase contracts by the end of the decade.

Plan summary

This Year -- FPL reported that 1,200 megawatts of FPL generation is newly in service or will be in time for this summer. (That's enough electricity to serve approximately 280,000 homes and businesses.) The company says its new resources should provide a sufficient supply of electricity for the summer barring unexpected losses of major generating units.

2002-2003 -- By the end of 2003, another 1,450 megawatts of new generating capacity, currently under construction, will enter service. This represents power coming from the completed "repowering" of FPL's Fort Myers and Sanford power plants, as well as new generating units being added to the Fort Myers plant site. Repowering converts older, oil-fired plants to new, cleaner burning natural gas-fired power plant technology. Following repowering, the Fort Myers plant will nearly triple its output to 1,400 megawatts, and the Sanford plant site will more than double its capacity to 2,100 megawatts.

2005-2006 -- By the middle of this decade FPL expects to convert peaking units at Fort Myers and the Martin County plant to natural gas-fired, combined-cycle generators. FPL also plans to add two more generating units at the Martin plant site and another on FPL property at a site called Midway in St. Lucie County.

2007-2010 -- FPL's current planning studies have identified five new combined cycle units as the preferred options to meet future growth at the end of the decade. However, repowering of existing FPL sites or new power purchases remain as alternatives. FPL will continue to examine these options.

Looking ahead and continuing to work with our communities

"Certainly if the energy needs of our customers increase beyond current projections, we will accelerate our power plant expansion timetable," said Mr. Evanson.

"We also recognize that our expansion plans have an impact on the communities we serve -- adding not only power plants, but also power lines and wires needed to move electricity from the generation sources to our population centers," Mr. Evanson said. "We will continue to work with municipalities, counties, agencies and citizens to look for ways to enhance the benefits and operating and environmental performance of our facilities."

Ensuring that we save energy, not just add power plants

"At the same time we are adding new generation to meet a growing population, we will continue to promote energy conservation programs to help reduce demand for electricity," Mr. Evanson added.

"Over the past two decades, through conservation programs, we've helped our customers reduce energy use enough to avoid having to build seven power plants. And we anticipate avoiding the need for two medium-sized power plants in this decade," Mr. Evanson said. "FPL continues to support cost-effective conservation as a major part of our effort to provide customers low-cost, reliable and environmentally responsible electricity."

  FPL - This Year and Beyond
  FPL Preparation:
   * 2001 summer system capability -- 20,099 megawatts (summer)
   * 2001 reserve margin forecast -- 20 percent
   * 2000 summer peak -- 17,808 megawatts
   * 2001 forecasted summer peak -- 18,000 megawatts, plus
   * 2001 voluntary load reduction capability -- 1,300 megawatts
   * 2001 customers participating in voluntary load reducing programs --
     665,000

  FPL Future Plans:
  * Major scheduled plant additions (summer):
      * Fort Myers repowered -- 900 megawatts of new capacity (from 540 to
        1,440 megawatts); complete in mid-2002
      * Sanford repowered -- 1,150 megawatts of new capacity (from 950 mw to
        2,100 megawatts in 2003
      * Martin -- two new natural gas, combined cycle units of 550 megawatts
        each in 2005
      * Fort Myers -- new natural gas, combined cycle unit of 550 megawatts
        in 2005
      * Midway -- new natural gas, combined cycle unit of 550 megawatts in
        2005
      * Martin -- new natural gas, combined cycle unit of 550 megawatts in
        2006
      * The equivalent of five new, unsited combined-cycle generating units
        -- one in 2007, one in 2009 and three in 2010.
  * FPL total capacity additions planned for 2001-2010, including new
    generating units and purchases from other companies: 6,300 megawatts
  * Energy conservation: 765 mw of additional reduction in energy demand
    achieved from 2000 to 2009.

Florida Power & Light Company is the principal subsidiary of FPL Group, Inc. , one of the nation's largest providers of electricity-related services with annual revenues of more than $7 billion. The company serves approximately 3.9 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 www.fpl.com.

  NOTE:
  Following are some definitions of utility terminology that may be helpful:

Simple-cycle units -- Simple-cycle units are combustion turbines (jet engines) that make power "directly" by using combustion to drive a turbine/generator that produces electricity. Sometime they also are called "peaking units." This type of generator can be brought into service quickly for short periods of time, so simple-cycle peaking units are often used to meet periods of high customer use in the summer or winter.

Combined-cycle units -- This type of generating technology uses both simple-cycle combustion turbines (jet engines), plus a steam-driven turbine/generator. Combined-cycle units are efficient and cost effective because they make electricity using both the combustion process and then the waste heat from their jet engines to make more electricity. The waste heat is directed to a steam generator. The steam that's produced then runs a secondary, electricity-producing turbine/generator. Using steam to make electricity has been the traditional technology in use for many years.

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SOURCE: Florida Power & Light Company