January 19, 2007

Renewable Energy Potential in Florida

FPL’s Commitment

• FPL is committed to the development of renewable resources of benefit to our customers;

• In 2005, FPL purchased more than 1.5 million MWh from renewable resources;

• FPL’s voluntary Sunshine Energy program has been recognized as one of the most effective programs in the country;

• FPL’s DSM program has been recognized as the most effective in the country;

• FPL Group is the largest generator of electricity from renewable resources in the world.

FPL’s Experienced Team

• Renewable Strategy Team– Sponsored by Chief Development Officer, V.P. Customer

Service, Director Resource Assessment and Planning (“RAP”)– Charged to explore what FPL can do to encourage renewable

energy across the company, including demand side, supply side, and operations.

• Supply Side Experience– Mike Leighton, V.P. Project Development & Chief

Development Officer• Prior to joining FPL. Mike was the COO of FPL Energy – the

largest renewable generator– Tom Hartman, Director of Business Management, RAP

• Prior to joining FPL, Tom was V.P. Renewables at FPL Energy

– Chris Herron – Manager, Project Development• Dedicated to exploring potential for renewable energy in

FPL’s service territory.

How is Florida doing today?Renewable Energy Production (2003)

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FL is #13 in the U.S.

A more focused picture;Renewable Energy Production (2003)

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FL is #2 in the U.S.

Florida Existing Renewable Generation

Energy Source (Nameplate MW, %)

AG Waste, 125.6, 11%

Black Liquor, 230.7, 20%

Landfill Gas, 20.4, 2%

MSW, 499.8, 44%

Waste Water, 10, 1%

Hydro, 55.7, 5%

Wood, 79.5, 7%

Waste Heat, 114, 10%

Waste to Energy in Florida

• Total Potential – 868 MW– Based upon DEP figures for county by

county waste production• Actual Capacity – 476 MW• Potential Additions – 392 MW

Landfill Gas in Florida

• Total Potential – 86.8 MW– Based upon US EPA data

• Actual Capacity – 20.4– Based upon EIA 2005 data

• Potential Additions – 66.4 MW

Biomass

Biomass Potential in Florida

• Agricultural Waste & Forest Products• Total Potential – 492 MW

– Based on 1999 ORNL survey• Actual Capacity – 202 MW

– EIA Survey 2005• Potential Additions – 270 MW

Wind Potential

Solar Potential

Available Incentives

Corporate Tax Credit

Corporate Depreciation

Production Incentive

Federal Grant

Federal Loan

Personal Tax Credit

Production Tax Credit

Sales Tax Exemption

State Grant Program

Rebate Program

PV X X X X X X X X X X XSolar Water Heating

X X X X X X X X

Solar Pool Heating

X X X

Solar Space Heating

X X X X X X

Solar Thermal Electric

X X X X X X

Digester Gas X X

Biomass X X X X XMSWLandfill Gas X XWind X X X X X XCogen X XGeothermal X X X X X X XHydro X X XWave Energy

X X X X

Tidal Energy X X X XOcean Thermal X X X X

TRECResource

Federal Incentives Florida Incentives

Future Potentials

• Ocean Current Energy– Potentially huge resource for Florida– At least a decade from commercial viability– FAU established as a center of excellence– FPL monitoring and participating

• Closed Loop Biomass– E-grass facility recently approved– 15,000 to 18,000 acres required for 116 MW

plant

Summary

• Renewable generation critically depends upon the availability of the resource;

• Of the resources identified (WTE, LFB, Biomass), Florida is currently using 42.5% of the identified potential;

• Interest in new renewable development is high, and developers are actively bringing potentially viable projects to the utilities; and

• Innovative technologies to expand renewable opportunities in Florida are in development.