UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q |
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission | Exact name of registrants as specified in their | IRS Employer | |||||
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CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS | |
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PART I- FINANCIAL INFORMATION | ||||||||||||
Item 1. Financial Statements | ||||||||||||
FPL GROUP, INC. | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||
OPERATING REVENUES | $ | 2,459 | $ | 2,128 | $ | 4,632 | $ | 3,899 | ||||
OPERATING EXPENSES | ||||||||||||
Fuel, purchased power and interchange | 1,182 | 969 | 2,204 | 1,701 | ||||||||
Other operations and maintenance | 391 | 335 | 784 | 681 | ||||||||
Depreciation and amortization | 267 | 230 | 526 | 494 | ||||||||
Taxes other than income taxes | 205 | 185 | 397 | 358 | ||||||||
Total operating expenses | 2,045 | 1,719 | 3,911 | 3,234 | ||||||||
OPERATING INCOME | 414 | 409 | 721 | 665 | ||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||
Interest charges | (84 | ) | (79 | ) | (161 | ) | (160 | ) | ||||
Preferred stock dividends - FPL | (4 | ) | (4 | ) | (7 | ) | (7 | ) | ||||
Equity in earnings of equity method investees | 18 | 24 | 51 | 33 | ||||||||
Other - net | 6 | 23 | (1 | ) | 27 | |||||||
Total other deductions - net | (64 | ) | (36 | ) | (118 | ) | (107 | ) | ||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 350 | 373 | 603 | 558 | ||||||||
INCOME TAXES | 111 | 123 | 189 | 142 | ||||||||
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE | ||||||||||||
IN ACCOUNTING PRINCIPLE | 239 | 250 | 414 | 416 | ||||||||
Cumulative effect of ADOPTING fas 142, "GOODWILL AND OTHER | ||||||||||||
INTANGIBLE ASSETS," NET OF INCOME TAXES OF $143 | - | - | - | (222 | ) | |||||||
NET INCOME | $ | 239 | $ | 250 | $ | 414 | $ | 194 | ||||
Earnings per share of common stock: | ||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 1.35 | $ | 1.46 | $ | 2.34 | $ | 2.45 | ||||
Cumulative effect of adopting FAS 142 | $ | - | $ | - | $ | - | $ | (1.31 | ) | |||
Earnings per share | $ | 1.35 | $ | 1.46 | $ | 2.34 | $ | 1.14 | ||||
Earnings per share of common stock - assuming dilution: | ||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 1.34 | $ | 1.46 | $ | 2.33 | $ | 2.45 | ||||
Cumulative effect of adopting FAS 142 | $ | - | $ | - | $ | - | $ | (1.31 | ) | |||
Earnings per share | $ | 1.34 | $ | 1.46 | $ | 2.33 | $ | 1.14 | ||||
Dividends per share of common stock | $ | 0.60 | $ | 0.58 | $ | 1.20 | $ | 1.16 | ||||
Weighted-average number of common shares outstanding | 177.3 | 170.6 | 177.0 | 169.9 | ||||||||
Weighted-average number of common shares outstanding - assuming dilution | 178.1 | 171.1 | 177.6 | 170.2 | ||||||||
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FPL GROUP, INC. | |||||||
June 30, | December 31, | ||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Electric utility plant in service and other property | $ | 25,544 | $ | 23,664 | |||
Nuclear fuel - net | 214 | 202 | |||||
Construction work in progress | 2,498 | 2,639 | |||||
Less accumulated depreciation and amortization | (11,287 | ) | (12,201 | ) | |||
Total property, plant and equipment - net | 16,969 | 14,304 | |||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | 281 | 266 | |||||
Customer receivables, net of allowances of $21 and $26, respectively | 822 | 642 | |||||
Other receivables | 219 | 223 | |||||
Materials, supplies and fossil fuel inventory - at average cost | 408 | 448 | |||||
Deferred clause expenses | 469 | 131 | |||||
Other | 341 | 198 | |||||
Total current assets | 2,540 | 1,908 | |||||
OTHER ASSETS | |||||||
Special use funds | 2,083 | 1,921 | |||||
Other investments | 760 | 697 | |||||
Other | 1,069 | 960 | |||||
Total other assets | 3,912 | 3,578 | |||||
TOTAL ASSETS | $ | 23,421 | $ | 19,790 | |||
CAPITALIZATION | |||||||
Common stock | $ | 2 | $ | 2 | |||
Additional paid-in capital | 3,148 | 3,091 | |||||
Retained earnings | 3,483 | 3,281 | |||||
Accumulated other comprehensive income | 43 | 16 | |||||
Total common shareholders' equity | 6,676 | 6,390 | |||||
Preferred stock of FPL without sinking fund requirements | 226 | 226 | |||||
Long-term debt | 6,765 | 5,790 | |||||
Total capitalization | 13,667 | 12,406 | |||||
CURRENT LIABILITIES | |||||||
Commercial paper | 1,370 | 1,822 | |||||
Notes payable | 525 | 375 | |||||
Current maturities of long-term debt | 176 | 105 | |||||
Accounts payable | 728 | 458 | |||||
Customers' deposits | 340 | 316 | |||||
Accrued interest and taxes | 298 | 169 | |||||
Deferred clause revenues | 41 | 62 | |||||
Other | 697 | 604 | |||||
Total current liabilities | 4,175 | 3,911 | |||||
OTHER LIABILITIES AND DEFERRED CREDITS | |||||||
Asset retirement obligations | 2,027 | - | |||||
Accumulated deferred income taxes | 1,761 | 1,547 | |||||
Storm and property insurance reserve | 317 | 298 | |||||
Other | 1,474 | 1,628 | |||||
Total other liabilities and deferred credits | 5,579 | 3,473 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 23,421 | $ | 19,790 | |||
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FPL GROUP, INC. |
Six Months Ended | ||||||
2003 | 2002 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ | 414 | $ | 194 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 518 | 471 | ||||
Goodwill impairment | - | 365 | ||||
Deferred income taxes and related regulatory credit | 206 | (46 | ) | |||
Cost recovery clauses | (336 | ) | 171 | |||
Equity in earnings of equity method investees | (51 | ) | (33 | ) | ||
Distribution of earnings from equity method investees | 15 | 46 | ||||
Changes in operating assets and liabilities: | ||||||
Restricted cash | (4 | ) | 263 | |||
Customer receivables | (178 | ) | (25 | ) | ||
Other receivables | 1 | 29 | ||||
Material, supplies & fuel | 41 | 6 | ||||
Other current assets | (52 | ) | (49 | ) | ||
Deferred pension cost | (61 | ) | (55 | ) | ||
Accounts payable | 289 | 135 | ||||
Customers' deposits | 24 | 18 | ||||
Accrued interest & taxes | 130 | 92 | ||||
Other current liabilities | 47 | (95 | ) | |||
Other liabilities | (26 | ) | (87 | ) | ||
Other - net | 55 | 27 | ||||
Net cash provided by operating activities | 1,032 | 1,427 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures of FPL | (629 | ) | (558 | ) | ||
Independent power investments | (762 | ) | (615 | ) | ||
Capital expenditures of FPL FiberNet, LLC | (4 | ) | (10 | ) | ||
Contributions to special use funds | (109 | ) | (35 | ) | ||
Funds held for bond redemptions | (69 | ) | - | |||
Other - net | 18 | 34 | ||||
Net cash used in investing activities | (1,555 | ) | (1,184 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Issuances of long-term debt | 1,083 | 1,077 | ||||
Retirements of long-term debt | (43 | ) | (242 | ) | ||
Net change in short-term debt | (302 | ) | (887 | ) | ||
Issuances of common stock | 30 | 342 | ||||
Dividends on common stock | (212 | ) | (196 | ) | ||
Other - net | (18 | ) | (35 | ) | ||
Net cash provided by financing activities | 538 | 59 | ||||
Net increase in cash and cash equivalents | 15 | 302 | ||||
Cash and cash equivalents at beginning of period | 266 | 82 | ||||
Cash and cash equivalents at end of period | $ | 281 | $ | 384 | ||
Supplemental schedule of noncash investing and financing activities | ||||||
Additions to capital lease obligations | $ | 41 | $ | 35 | ||
Accrual for premium on publicly-traded equity units known as corporate units | $ | - | $ | 111 | ||
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FLORIDA POWER & LIGHT COMPANY | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||||
OPERATING REVENUES | $ | 2,053 | $ | 1,921 | $ | 3,810 | $ | 3,460 | |||||
OPERATING EXPENSES | |||||||||||||
Fuel, purchased power and interchange | 970 | 886 | 1,780 | 1,513 | |||||||||
Other operations and maintenance | 308 | 285 | 609 | 558 | |||||||||
Depreciation and amortization | 223 | 202 | 442 | 438 | |||||||||
Taxes other than income taxes | 191 | 173 | 366 | 342 | |||||||||
Total operating expenses | 1,692 | 1,546 | 3,197 | 2,851 | |||||||||
OPERATING INCOME | 361 | 375 | 613 | 609 | |||||||||
OTHER INCOME (DEDUCTIONS) | |||||||||||||
Interest charges | (45 | ) | (43 | ) | (83 | ) | (85 | ) | |||||
Other - net | - | (2 | ) | (1 | ) | (7 | ) | ||||||
Total other deductions - net | (45 | ) | (45 | ) | (84 | ) | (92 | ) | |||||
INCOME BEFORE INCOME TAXES | 316 | 330 | 529 | 517 | |||||||||
INCOME TAXES | 113 | 121 | 188 | 187 | |||||||||
NET INCOME | 203 | 209 | 341 | 330 | |||||||||
PREFERRED STOCK DIVIDENDS | 4 | 4 | 7 | 7 | |||||||||
NET INCOME AVAILABLE TO FPL GROUP | $ | 199 | $ | 205 | $ | 334 | $ | 323 | |||||
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FLORIDA POWER & LIGHT COMPANY |
June 30, | December 31, | ||||||
ELECTRIC UTILITY PLANT | |||||||
Plant in service | $ | 20,900 | $ | 19,864 | |||
Nuclear fuel under capital lease - net | 151 | 140 | |||||
Construction work in progress | 625 | 757 | |||||
Less accumulated depreciation | (10,756 | ) | (11,842 | ) | |||
Electric utility plant - net | 10,920 | 8,919 | |||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | 100 | - | |||||
Customer receivables, net of allowances of $10 and $9, respectively | 657 | 503 | |||||
Other receivables | 124 | 125 | |||||
Materials, supplies and fossil fuel inventory - at average cost | 324 | 349 | |||||
Deferred clause expenses | 469 | 131 | |||||
Other | 169 | 57 | |||||
Total current assets | 1,843 | 1,165 | |||||
OTHER ASSETS | |||||||
Special use funds | 1,832 | 1,693 | |||||
Other | 911 | 860 | |||||
Total other assets | 2,743 | 2,553 | |||||
TOTAL ASSETS | $ | 15,506 | $ | 12,637 | |||
CAPITALIZATION | |||||||
Common stock | $ | 1,373 | $ | 1,373 | |||
Additional paid-in capital | 3,716 | 3,716 | |||||
Retained earnings | 374 | 295 | |||||
Accumulated other comprehensive loss | (2 | ) | (2 | ) | |||
Total common shareholder's equity | 5,461 | 5,382 | |||||
Preferred stock without sinking fund requirements | 226 | 226 | |||||
Long-term debt | 2,858 | 2,364 | |||||
Total capitalization | 8,545 | 7,972 | |||||
CURRENT LIABILITIES | |||||||
Commercial paper | 392 | 722 | |||||
Notes payable | 150 | - | |||||
Current maturities of long-term debt | 139 | 70 | |||||
Accounts payable | 606 | 369 | |||||
Customers' deposits | 334 | 316 | |||||
Accrued interest and taxes | 255 | 175 | |||||
Deferred clause revenues | 41 | 62 | |||||
Other | 320 | 297 | |||||
Total current liabilities | 2,237 | 2,011 | |||||
OTHER LIABILITIES AND DEFERRED CREDITS | |||||||
Asset retirement obligations | 1,857 | - | |||||
Accumulated deferred income taxes | 1,394 | 1,215 | |||||
Storm and property insurance reserve | 317 | 298 | |||||
Other | 1,156 | 1,141 | |||||
Total other liabilities and deferred credits | 4,724 | 2,654 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 15,506 | $ | 12,637 | |||
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FLORIDA POWER & LIGHT COMPANY |
Six Months Ended | ||||||
2003 | 2002 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | $ | 341 | $ | 330 | ||
Net income | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 419 | 416 | ||||
Deferred income taxes and related regulatory credit | 170 | 62 | ||||
Cost recovery clauses | (336 | ) | 171 | |||
Changes in operating assets and liabilities: | ||||||
Customer receivables | (154 | ) | 66 | |||
Other receivables | 15 | 4 | ||||
Material, supplies & fuel | 25 | (46 | ) | |||
Other current assets | (40 | ) | (20 | ) | ||
Deferred pension cost | (50 | ) | (49 | ) | ||
Accounts payable | 256 | 72 | ||||
Customers' deposits | 18 | 18 | ||||
Accrued interest & taxes | 80 | 120 | ||||
Other current liabilities | 25 | (81 | ) | |||
Other liabilities | 7 | 49 | ||||
Other - net | 6 | 4 | ||||
Net cash provided by operating activities | 782 | 1,116 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures | (629 | ) | (558 | ) | ||
Contributions to special use funds | (102 | ) | (35 | ) | ||
Funds held for bond redemptions | (69 | ) | - | |||
Other - net | 1 | 2 | ||||
Net cash used in investing activities | (799 | ) | (591 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Issuances of long-term debt | 585 | - | ||||
Retirements of long-term debt | (24 | ) | (225 | ) | ||
Net change in short-term debt | (181 | ) | 227 | |||
Dividends | (263 | ) | (524 | ) | ||
Net cash provided by (used in) financing activities | 117 | (522 | ) | |||
Net increase in cash and cash equivalents | 100 | 3 | ||||
Cash and cash equivalents at beginning of period | - | 1 | ||||
Cash and cash equivalents at end of period | $ | 100 | $ | 4 | ||
Supplemental schedule of noncash investing and financing activities | ||||||
Additions to capital lease obligations | $ | 41 | $ | 35 | ||
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FPL GROUP, INC. AND FLORIDA POWER & LIGHT COMPANY |
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Three Months Ended | Six Months Ended | |||||||||||||||||||
2003 | 2002 | 2003 | 2002; | |||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||
Net income | $ | 239 | $ | 250 | $ | 414 | $ | 194 | ||||||||||||
Denominator: | ||||||||||||||||||||
Weighted-average number of common shares outstanding | 177.3 | 170.6 | 177.0 | 169.9 | ||||||||||||||||
Performance share and shareholder value awards, options and equity units (a) | 0.8 | 0.5 | 0.6 | 0.3 | ||||||||||||||||
Weighted-average number of common shares outstanding - assuming dilution | 178.1 | 171.1 | 177.6 | 170.2 | ||||||||||||||||
Earnings per share | $ | 1.35 | $ | 1.46 | $ | 2.34 | $ | 1.14 | ||||||||||||
Earnings per share-assuming dilution | $ | 1.34 | $ | 1.46 | $ | 2.33 | $ | 1.14 | ||||||||||||
_____________________ | ||||||||||||||||||||
(a) | Performance share and shareholder value awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award. Options and equity units (known as Corporate Units) are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method. |
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Three Months Ended | Six Months Ended | |||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||
(millions) | ||||||||||||||
Trading and managed hedges(a) | $ | - | $ | (6 | ) | $ | (4 | ) | $ | 8 | ||||
Non-managed hedges(b) | $ | (3 | ) | $ | 2 | $ | 3 | $ | 3 | |||||
_____________________ | ||||||||||||||
(a) | The unrealized gains (losses) from trading and managed hedge activities are reported net in operating revenues. | |||||||||||||
(b) | The unrealized gains (losses) from non-managed hedge activities of consolidated entities are reported in other-net and activities of equity method investees are reported in equity in earnings of equity method investees in FPL Group's condensed consolidated statements of income. | |||||||||||||
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Three Months Ended | Six Months Ended | ||||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||||
(millions, except per share amounts) | |||||||||||||
Net income, as reported | $ | 239 | $ | 250 | $ | 414 | $ | 194 | |||||
Deduct: total stock-based employee | |||||||||||||
compensation expense determined under | |||||||||||||
fair value based method, net of | |||||||||||||
related tax effects | 2 | 2 | 3 | 3 | |||||||||
Pro forma net income | $ | 237 | $ | 248 | $ | 411 | $ | 191 | |||||
Earnings per share: | |||||||||||||
As reported | $ | 1.35 | $ | 1.46 | $ | 2.34 | $ | 1.14 | |||||
Pro forma | $ | 1.34 | $ | 1.45 | $ | 2.32 | $ | 1.12 | |||||
Assuming dilution - as reported | $ | 1.34 | $ | 1.46 | $ | 2.33 | $ | 1.14 | |||||
Assuming dilution - pro forma | $ | 1.33 | $ | 1.45 | $ | 2.31 | $ | 1.12 |
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(millions) | ||||||||||||||||||||
FPL: (a) | ||||||||||||||||||||
Generation | $ | 395 | $ | 670 | $ | 490 | $ | 230 | $ | 320 | $ | 2,105 | ||||||||
Transmission | 95 | 185 | 140 | 135 | 140 | 695 | ||||||||||||||
Distribution | 235 | 520 | 510 | 515 | 525 | 2,305 | ||||||||||||||
General and other | 70 | 135 | 115 | 125 | 120 | 565 | ||||||||||||||
Total | $ | 795 | $ | 1,510 | $ | 1,255 | $ | 1,005 | $ | 1,105 | $ | 5,670 | ||||||||
FPL Energy: | ||||||||||||||||||||
Wind(b) | $ | 685 | $ | - | $ | - | $ | - | $ | - | $ | 685 | ||||||||
Gas | 160 | 45 | 10 | 10 | 10 | 235 | ||||||||||||||
Nuclear | 10 | 30 | 40 | 20 | 15 | 115 | ||||||||||||||
Total | $ | 855 | $ | 75 | $ | 50 | $ | 30 | $ | 25 | $ | 1,035 | ||||||||
FPL FiberNet | $ | 5 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 45 | ||||||||
_________________________ | ||||||||||||||||||||
(a) | Represents estimated capital expenditures for capacity needs identified through 2006. | |||||||||||||||||||
(b) | FPL Energy's capital expenditures for wind are estimated through 2003, when the production tax credits are scheduled to expire, and assumes the addition of approximately 1,000 mw, of which 836 mw have been announced. |
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2003 | 2004 | 2005 | 2006 | 2007 | Thereafter | |||||||||||||||||||
FPL: | (millions) | |||||||||||||||||||||||
Capacity payments: | ||||||||||||||||||||||||
JEA and Southern Companies | $ | 90 | $ | 180 | $ | 180 | $ | 190 | $ | 190 | $ | 1,100 | ||||||||||||
Qualifying facilities | $ | 170 | $ | 350 | $ | 350 | $ | 300 | $ | 300 | $ | 4,300 | ||||||||||||
Other electricity suppliers | $ | 55 | $ | 90 | $ | 55 | $ | 50 | $ | 5 | $ | - | ||||||||||||
Minimum payments, at projected prices: | ||||||||||||||||||||||||
Southern Companies- energy | $ | 30 | $ | 60 | $ | 70 | $ | 70 | $ | 70 | $ | 180 | ||||||||||||
Natural gas, including transportation | $ | 935 | $ | 1,180 | $ | 615 | $ | 275 | $ | 275 | $ | 3,175 | ||||||||||||
Coal | $ | 15 | $ | 25 | $ | 25 | $ | 10 | $ | 10 | $ | - | ||||||||||||
Oil | $ | 200 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
FPL Energy | $ | 20 | $ | 45 | $ | 40 | $ | 40 | $ | 40 | $ | 610 |
Charges under these contracts were as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||
| Energy/ |
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(millions) | ||||||||||||||||||||||||||||||||
FPL: | ||||||||||||||||||||||||||||||||
JEA and Southern Companies | $ | 47 | (a) | $ | 40 | (b) | $ | 50 | (a) | $ | 42 | (b) | $ | 96 | (a) | $ | 78 | (b) | $ | 96 | (a) | $ | 79 | (b) | ||||||||
Qualifying facilities | $ | 94 | (c) | $ | 33 | (b) | $ | 79 | (c) | $ | 29 | (b) | $ | 178 | (c) | $ | 68 | (b) | $ | 155 | (c) | $ | 60 | (b) | ||||||||
Other electricity suppliers | $ | 28 | (c) | $ | 13 | (b) | $ | 22 | (c) | $ | 7 | (b) | $ | 42 | (c) | $ | 17 | (b) | $ | 25 | (c) | $ | 9 | (b) | ||||||||
Natural gas, including transportation | $ | - | $ | 443 | (b) | $ | - | $ | 225 | (b) | $ | - | $ | 842 | (b) | $ | - | $ | 368 | (b) | ||||||||||||
Coal | $ | - | $ | 12 | (b) | $ | - | $ | 15 | (b) | $ | - | $ | 25 | (b) | $ | - | $ | 29 | (b) | ||||||||||||
Oil | $ | - | $ | 152 | (b) | $ | - | $ | 112 | (b) | $ | - | $ | 272 | (b) | $ | - | $ | 165 | (b) | ||||||||||||
FPL Energy | $ | - | $ | 11 | $ | - | $ | 4 | $ | - | $ | 19 | $ | - | $ | 9 | ||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||
(a) Majority is recoverable through the capacity cost recovery clause (capacity clause). | ||||||||||||||||||||||||||||||||
(b) Recoverable through the fuel and purchased power cost recovery clause (fuel clause). | ||||||||||||||||||||||||||||||||
(c) Recoverable through the capacity clause. |
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10. Segment Information |
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Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||||||||||||||||||||
| FPL | Corporate |
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| FPL | Corporate |
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(millions) | ||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 2,053 | $ | 388 | $ | 18 | $ | 2,459 | $ | 1,921 | $ | 166 | $ | 41 | $ | 2,128 | ||||||||||||||||||||||
Operating expenses | $ | 1,692 | $ | 334 | $ | 19 | $ | 2,045 | $ | 1,546 | $ | 155 | $ | 18 | $ | 1,719 | ||||||||||||||||||||||
Net income (loss) | $ | 199 | $ | 49 | $ | (9 | ) | $ | 239 | $ | 205 | $ | 38 | $ | 7 | $ | 250 | |||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||||||||||||||||||||
| FPL | Corporate |
|
| FPL | Corporate |
| |||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 3,810 | $ | 772 | $ | 50 | $ | 4,632 | $ | 3,460 | $ | 370 | $ | 69 | $ | 3,899 | ||||||||||||||||||||||
Operating expenses | $ | 3,197 | $ | 673 | $ | 41 | $ | 3,911 | $ | 2,851 | $ | 334 | $ | 49 | $ | 3,234 | ||||||||||||||||||||||
Income (loss) before cumulative effect of a | ||||||||||||||||||||||||||||||||||||||
change in accounting principle | $ | 334 | $ | 93 | $ | (13 | ) | $ | 414 | $ | 323 | $ | 61 | $ | 32 | (b) | $ | 416 | ||||||||||||||||||||
Cumulative effect of adopting FAS 142, net | ||||||||||||||||||||||||||||||||||||||
of income taxes | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (222 | ) | $ | - | $ | (222 | ) | ||||||||||||||||||||
Net income (loss) | $ | 334 | $ | 93 | $ | (13 | ) | $ | 414 | $ | 323 | $ | (161 | ) | $ | 32 | (b) | $ | 194 | |||||||||||||||||||
June 30, 2003 | December 31, 2002 | |||||||||||||||||||||||||||||||||||||
| FPL | Corporate |
|
| FPL | Corporate |
| |||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 15,506 | (c) | $ | 7,218 | (c) | $ | 697 | $ | 23,421 | $ | 12,637 | $ | 6,358 | $ | 795 | $ | 19,790 | ||||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||||||||
(a) | FPL Energy's results include interest charges based on an assumed capital structure of 50% debt for operating projects and 100% debt for projects under construction. | |||||||||||||||||||||||||||||||||||||
(b) | Includes favorable settlement of litigation with the Internal Revenue Service for which a net tax benefit of $30 million was recognized. | |||||||||||||||||||||||||||||||||||||
(c) | Reflects the adoption of FAS 143 in January 2003. See Note 1. |
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Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2003 | 2002 | ||||||||||||||||||||||||||||||||||
| FPL |
|
|
| FPL |
|
| ||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Operating revenues | $ | - | $ | 406 | $ | 2,053 | $ | 2,459 | $ | - | $ | 206 | $ | 1,922 | $ | 2,128 | |||||||||||||||||||
Operating expenses | - | (353 | ) | (1,692 | ) | (2,045 | ) | - | (174 | ) | (1,545 | ) | (1,719 | ) | |||||||||||||||||||||
Interest charges | (7 | ) | (39 | ) | (38 | ) | (84 | ) | (7 | ) | (37 | ) | (35 | ) | (79 | ) | |||||||||||||||||||
Other income (deductions)- net | 244 | 31 | (255 | ) | 20 | 255 | 58 | (270 | ) | 43 | |||||||||||||||||||||||||
Income from operations before income taxes | 237 | 45 | 68 | 350 | 248 | 53 | 72 | 373 | |||||||||||||||||||||||||||
Income tax expense (benefit) | (2 | ) | - | 113 | 111 | (2 | ) | 4 | 121 | 123 | |||||||||||||||||||||||||
Net income (loss) | $ | 239 | $ | 45 | $ | (45 | ) | $ | 239 | $ | 250 | $ | 49 | $ | (49 | ) | $ | 250 | |||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||||||||||||
| FPL |
|
|
| FPL |
|
| |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||
Operating revenues | $ | - | $ | 821 | $ | 3,811 | $ | 4,632 | $ | - | $ | 439 | $ | 3,460 | $ | 3,899 | ||||||||||||||
Operating expenses | - | (714 | ) | (3,197 | ) | (3,911 | ) | - | (383 | ) | (2,851 | ) | (3,234 | ) | ||||||||||||||||
Interest charges | (14 | ) | (76 | ) | (71 | ) | (161 | ) | (14 | ) | (74 | ) | (72 | ) | (160 | ) | ||||||||||||||
Other income (deductions)-net | 424 | 64 | (445 | ) | 43 | 200 | 81 | (228 | ) | 53 | ||||||||||||||||||||
Income from operations before income taxes | 410 | 95 | 98 | 603 | 186 | 63 | 309 | 558 | ||||||||||||||||||||||
Income tax expense (benefit) | (4 | ) | 6 | 187 | 189 | (8 | ) | (36 | ) | 186 | 142 | |||||||||||||||||||
Income (loss) before cumulative effect of a | ||||||||||||||||||||||||||||||
change in accounting principle | 414 | 89 | (89 | ) | 414 | 194 | 99 | 123 | 416 | |||||||||||||||||||||
Cumulative effect of adopting FAS 142, | ||||||||||||||||||||||||||||||
net of income taxes | - | - | - | - | - | (222 | ) | - | (222 | ) | ||||||||||||||||||||
Net income (loss) | $ | 414 | $ | 89 | $ | (89 | ) | $ | 414 | $ | 194 | $ | (123 | ) | $ | 123 | $ | 194 | ||||||||||||
_____________________ | ||||||||||||||||||||||||||||||
(a) Represents FPL and consolidating adjustments. |
| ||||||||||||||||||||||||||||||
June 30, 2003 | December 31, 2002 | |||||||||||||||||||||||||||||
|
| FPL |
|
|
| FPL |
|
| ||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||||||||||||||||
Electric utility plant in service and other property | $ | - | $ | 6,581 | $ | 21,675 | $ | 28,256 | $ | - | $ | 5,745 | $ | 20,760 | $ | 26,505 | ||||||||||||||
Less accumulated depreciation and amortization | - | (532 | ) | (10,755 | ) | (11,287 | ) | - | (360 | ) | (11,841 | ) | (12,201 | ) | ||||||||||||||||
Total property, plant and equipment - net | - | 6,049 | 10,920 | 16,969 | - | 5,385 | 8,919 | 14,304 | ||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 46 | 135 | 100 | 281 | 5 | 261 | - | 266 | ||||||||||||||||||||||
Receivables | 522 | 292 | 227 | 1,041 | 460 | 269 | 136 | 865 | ||||||||||||||||||||||
Other | - | 256 | 962 | 1,218 | - | 240 | 537 | 777 | ||||||||||||||||||||||
Total current assets | 568 | 683 | 1,289 | 2,540 | 465 | 770 | 673 | 1,908 | ||||||||||||||||||||||
OTHER ASSETS | ||||||||||||||||||||||||||||||
Investment in subsidiaries | 6,416 | - | (6,416 | ) | - | 6,221 | - | (6,221 | ) | - | ||||||||||||||||||||
Other | 107 | 1,412 | 2,393 | 3,912 | 103 | 1,284 | 2,191 | 3,578 | ||||||||||||||||||||||
Total other assets | 6,523 | 1,412 | (4,023 | ) | 3,912 | 6,324 | 1,284 | (4,030 | ) | 3,578 | ||||||||||||||||||||
TOTAL ASSETS | $ | 7,091 | $ | 8,144 | $ | 8,186 | $ | 23,421 | $ | 6,789 | $ | 7,439 | $ | 5,562 | $ | 19,790 | ||||||||||||||
CAPITALIZATION | ||||||||||||||||||||||||||||||
Common shareholders' equity | $ | 6,676 | $ | 955 | $ | (955 | ) | $ | 6,676 | $ | 6,390 | $ | 839 | $ | (839 | ) | $ | 6,390 | ||||||||||||
Preferred stock of FPL without sinking fund | ||||||||||||||||||||||||||||||
requirements | - | - | 226 | 226 | - | - | 226 | 226 | ||||||||||||||||||||||
Long-term debt | - | 3,906 | 2,859 | 6,765 | - | 3,426 | 2,364 | 5,790 | ||||||||||||||||||||||
Total capitalization | 6,676 | 4,861 | 2,130 | 13,667 | 6,390 | 4,265 | 1,751 | 12,406 | ||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||||||
Accounts payable and short-term debt | - | 1,476 | 1,147 | 2,623 | - | 1,563 | 1,092 | 2,655 | ||||||||||||||||||||||
Other | 47 | 970 | 535 | 1,552 | 17 | 812 | 427 | 1,256 | ||||||||||||||||||||||
Total current liabilities | 47 | 2,446 | 1,682 | 4,175 | 17 | 2,375 | 1,519 | 3,911 | ||||||||||||||||||||||
OTHER LIABILITIES AND DEFERRED CREDITS | ||||||||||||||||||||||||||||||
Asset retirement obligations | - | 169 | 1,858 | 2,027 | - | - | - | - | ||||||||||||||||||||||
Accumulated deferred income taxes | (5 | ) | 450 | 1,316 | 1,761 | (5 | ) | 412 | 1,140 | 1,547 | ||||||||||||||||||||
Other | 373 | 218 | 1,200 | 1,791 | 387 | 387 | 1,152 | 1,926 | ||||||||||||||||||||||
Total other liabilities and deferred credits | 368 | 837 | 4,374 | 5,579 | 382 | 799 | 2,292 | 3,473 | ||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 7,091 | $ | 8,144 | $ | 8,186 | $ | 23,421 | $ | 6,789 | $ | 7,439 | $ | 5,562 | $ | 19,790 | ||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||
(a) Represents FPL and consolidating adjustments. |
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2003 | 2002 | ||||||||||||||||||||||||||||||||||||||
|
| FPL |
|
|
| FPL |
|
| |||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) | |||||||||||||||||||||||||||||||||||||||
OPERATING ACTIVITIES | $ | 243 | $ | 270 | $ | 519 | $ | 1,032 | $ | (67 | ) | $ | 899 | $ | 595 | $ | 1,427 | ||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||
Capital expenditures and independent power | |||||||||||||||||||||||||||||||||||||||
investments | - | (766 | ) | (629 | ) | (1,395 | ) | - | (625 | ) | (558 | ) | (1,183 | ) | |||||||||||||||||||||||||
Other - net | - | 12 | (172 | ) | (160 | ) | 1 | 33 | (35 | ) | (1 | ) | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | - | (754 | ) | (801 | ) | (1,555 | ) | 1 | (592 | ) | (593 | ) | (1,184 | ) | |||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||
Issuances of long-term debt | - | 498 | 585 | 1,083 | - | 1,077 | - | 1,077 | |||||||||||||||||||||||||||||||
Retirements of long-term debt | - | (19 | ) | (24 | ) | (43 | ) | - | (17 | ) | (225 | ) | (242 | ) | |||||||||||||||||||||||||
Net change in short-term debt | - | (121 | ) | (181 | ) | (302 | ) | - | (1,114 | ) | 227 | (887 | ) | ||||||||||||||||||||||||||
Issuances of common stock | 30 | - | - | 30 | 342 | - | - | 342 | |||||||||||||||||||||||||||||||
Dividends | (212 | ) | - | - | (212 | ) | (196 | ) | - | - | (196 | ) | |||||||||||||||||||||||||||
Other-net | (20 | ) | - | 2 | (18 | ) | (35 | ) | - | - | (35 | ) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (202 | ) | 358 | 382 | 538 | 111 | (54 | ) | 2 | 59 | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 41 | (126 | ) | 100 | 15 | 45 | 253 | 4 | 302 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 261 | - | 266 | - | 81 | 1 | 82 | |||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 46 | $ | 135 | $ | 100 | $ | 281 | $ | 45 | $ | 334 | $ | 5 | $ | 384 | |||||||||||||||||||||||
_____________________ | |||||||||||||||||||||||||||||||||||||||
(a) Represents FPL and consolidating adjustments. |
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Three Months Ended | Six Months Ended | |||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||
(millions) | ||||||||||||
Retail base operations | $ | 946 | $ | 917 | $ | 1,774 | $ | 1,734 | ||||
Revenue refund provision | - | (4 | ) | - | (23 | ) | ||||||
Cost recovery clauses and other pass-through costs | 1,093 | 1,005 | 2,006 | 1,742 | ||||||||
Other | 14 | 3 | 30 | 7 | ||||||||
Total | $ | 2,053 | $ | 1,921 | $ | 3,810 | $ | 3,460 | ||||
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Remainder of 2003 | 2004 | |||||||||||||||||
|
| % MW |
| % MW | ||||||||||||||
Wind(b) | 2,118 | 100 | % | 2,335 | 100 | % | ||||||||||||
Non-wind assets under long-term contract | 1,255 | 98 | % | 1,255 | 98 | % | ||||||||||||
Merchants: | ||||||||||||||||||
Seabrook | 886 | 90 | % | 1,024 | 94 | % | ||||||||||||
NEPOOL/PJM/NYPP | 1,518 | 55 | % | (c) | 1,952 | 23 | % | (c) | ||||||||||
ERCOT | 2,897 | 76 | % | (c) | 3,009 | 43 | % | (c) | ||||||||||
Other (WECC/SERC) | 1,270 | 40 | % | (c) | 1,345 | 59 | % | (c) | ||||||||||
Total portfolio | 9,944 | 77 | % | 10,920 | 65 | % | �� | |||||||||||
_____________________ | ||||||||||||||||||
(a) | Weighted to reflect in-service dates, planned maintenance and a Seabrook refueling outage in 2003. | |||||||||||||||||
(b) | For further discussion regarding two wind projects involved in litigation that could potentially terminate long-term power sales agreements, see Note 9 - Other Contingencies. | |||||||||||||||||
(c) | Represents on-peak mw hedged. |
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Moody's(a) | S&P(a) | Fitch(a) | ||||||
FPL Group: | ||||||||
Corporate credit rating | N/A | A | A | |||||
FPL: | ||||||||
Corporate credit rating | A1 | A/A-1 | N/A | |||||
First mortgage bonds | Aa3 | A | AA- | |||||
Pollution control, solid waste disposal and | ||||||||
industrial development revenue bonds | Aa3/VMIG-1 | A/A-1 | A+ | |||||
Preferred stock | A3 | BBB+ | A | |||||
Commercial paper | P-1 | A-1 | F1 | |||||
FPL Group Capital: | ||||||||
Corporate credit rating | N/A | A/A-1 | N/A | |||||
Debentures | A2 | A- | A | |||||
Commercial paper | P-1 | A-1 | F1 | |||||
_____________________ | ||||||||
(a) | A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating organization. |
|
| ||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | Thereafter | Total | ||||||||||||||||
(millions) | ||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||
FPL | $ | 70 | $ | - | $ | 500 | $ | - | $ | - | $ | 2,444 | $ | 3,014 | ||||||||
FPL Energy | 16 | 37 | 41 | 35 | 22 | 212 | 363 | |||||||||||||||
Corporate and Other | - | 275 | - | 1,100 | 1,075 | 1,136 | 3,586 | |||||||||||||||
Standby letters of credit: | ||||||||||||||||||||||
FPL | 1 | 2 | - | - | - | - | 3 | |||||||||||||||
FPL Energy | 158 | 126 | - | - | - | - | 284 | |||||||||||||||
Corporate and Other | - | 3 | - | - | - | - | 3 | |||||||||||||||
Guarantees: | ||||||||||||||||||||||
FPL | - | 65 | - | 135 | - | - | 200 | |||||||||||||||
FPL Energy | 151 | 12 | 12 | - | 215 | 379 | 769 | |||||||||||||||
Corporate and Other | - | - | 2 | - | - | 1 | 3 | |||||||||||||||
Other commitments: | ||||||||||||||||||||||
FPL(a) | 795 | 1,510 | 1,255 | 1,005 | 1,105 | - | 5,670 | |||||||||||||||
FPL Energy(b) | 346 | 109 | 66 | 58 | 248 | 639 | 1,466 | |||||||||||||||
Total | $ | 1,537 | $ | 2,139 | $ | 1,876 | $ | 2,333 | $ | 2,665 | $ | 4,811 | $ | 15,361 | ||||||||
_____________________ | ||||||||||||||||||||||
(a) | Represents projected capital expenditures through 2007 to meet increased electricity usage and customer growth. Excludes minimum payments under purchased power and fuel contracts which are recoverable through various cost recovery clauses. See Note 9- Contracts. | |||||||||||||||||||||
(b) | Represents firm commitments in connection with the acquisition, development and expansion of independent power projects. |
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| |||||||||||
Net Unrealized |
|
| |||||||||
(millions) | |||||||||||
Balance, December 31, 2002 | $ | 19 | $ | (3 | ) | $ | 16 | ||||
Effective portion of net unrealized gain: | |||||||||||
Consolidated subsidiaries (net of $18 tax expense) | 28 | - | 28 | ||||||||
Equity method investees (net of $9 tax expense) | 14 | - | 14 | ||||||||
Reclassification from OCI to net income: | |||||||||||
Consolidated subsidiaries (net of $11 tax benefit) | (17 | ) | - | (17 | ) | ||||||
Equity method investees (net of $4 tax benefit) | (7 | ) | - | (7 | ) | ||||||
Net unrealized gain on available for sale securities | |||||||||||
(net of $5 tax expense) | - | 9 | 9 | ||||||||
Balances, June 30, 2003 | $ | 37 | $ | 6 | $ | 43 | |||||
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Hedges on Owned Assets | ||||||||||||||||||||
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|
| Cost | FPL | |||||||||||||||
(millions) | ||||||||||||||||||||
Three Months ended June 30, 2003 | ||||||||||||||||||||
Fair value of contracts outstanding at March 31, 2003 | $ | 4 | $ | 1 | $ | (7 | ) | $ | 39 | $ | 13 | $ | 50 | |||||||
Reclassification to realized at settlement of contracts | (2 | ) | - | 1 | (11 | ) | (6 | ) | (18 | ) | ||||||||||
Fair value of new contracts when entered into | - | - | - | - | - | - | ||||||||||||||
Effective portion of changes in fair value recorded in OCI | - | - | - | 18 | - | 18 | ||||||||||||||
Ineffective portion of changes in fair value recorded in earnings | - | - | - | - | - | - | ||||||||||||||
Changes in valuation assumptions | - | - | 2 | - | - | 2 | (a) | |||||||||||||
Changes in fair value excluding reclassification to realized | 2 | - | (3 | ) | - | 9 | 8 | |||||||||||||
Fair value of contracts outstanding at June 30, 2003 | 4 | 1 | (7 | ) | 46 | 16 | 60 | |||||||||||||
Net option premium payment/(receipts) | - | - | (9 | ) | - | 1 | (8 | ) | ||||||||||||
Total mark-to-market energy contract net assets at June 30, 2003 | $ | 4 | $ | 1 | $ | (16 | ) | $ | 46 | $ | 17 | $ | 52 | (b) | ||||||
Six Months ended June 30, 2003 | ||||||||||||||||||||
Fair value of contracts outstanding at December 31, 2002 | $ | 4 | $ | - | $ | 8 | $ | 28 | $ | 12 | $ | 52 | ||||||||
Reclassification to realized at settlement of contracts | (4 | ) | - | 2 | (28 | ) | (22 | ) | (52 | ) | ||||||||||
Fair value of new contracts when entered into | - | - | - | - | - | - | ||||||||||||||
Effective portion of changes in fair value recorded in OCI | - | - | - | 46 | - | 46 | ||||||||||||||
Ineffective portion of changes in fair value recorded in earnings | - | - | - | - | - | - | ||||||||||||||
Changes in valuation assumptions | - | - | 2 | - | - | 2 | (a) | |||||||||||||
Changes in fair value excluding reclassification to realized | 4 | 1 | (19 | ) | - | 26 | 12 | |||||||||||||
Fair value of contracts outstanding at June 30, 2003 | 4 | 1 | (7 | ) | 46 | 16 | 60 | |||||||||||||
Net option premium payment/(receipts) | - | - | (9 | ) | - | 1 | (8 | ) | ||||||||||||
Total mark-to-market energy contract net assets at June 30, 2003 | $ | 4 | $ | 1 | $ | (16 | ) | $ | 46 | $ | 17 | $ | 52 | (b) | ||||||
_____________________ | ||||||||||||||||||||
(a) | Change in valuation assumption from applying volatility skewness (selection of an input assumption among alternatives based on the moneyness of the option) in option valuation. | |||||||||||||||||||
(b) | Includes FPL's mark-to-market energy contract net assets of approximately $18 million at June 30, 2003. |
| ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current assets | $ | 108 | ||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 17 | |||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | (55 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | (18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
FPL Group's total mark-to-market energy contract net assets at June 30, 2003 | $ | 52 | ||||||||||||||||||||||||||||||||||||||||||||||
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Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Proprietary Trading: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actively quoted (i.e., exchange trade) prices | $ | - | $ | (1 | ) | $ | - | $ | - | $ | - | $ | - | $ | (1 | ) | ||||||||||||||||||||||||||||||||
Prices provided by other external sources | - | 2 | - | - | - | - | 2 | |||||||||||||||||||||||||||||||||||||||||
Modeled | - | - | 1 | - | - | 2 | 3 | |||||||||||||||||||||||||||||||||||||||||
Total | - | 1 | 1 | - | - | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||
Owned Assets - Managed: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actively quoted (i.e., exchange trade) prices | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Prices provided by other external sources | 1 | - | - | - | - | - | 1 | |||||||||||||||||||||||||||||||||||||||||
Modeled | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Total | 1 | - | - | - | - | - | 1 | |||||||||||||||||||||||||||||||||||||||||
Owned Assets - Non-Managed: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actively quoted (i.e., exchange trade) prices | (1 | ) | (2 | ) | 1 | - | - | - | (2 | ) | ||||||||||||||||||||||||||||||||||||||
Prices provided by other external sources | (8 | ) | (1 | ) | - | - | - | - | (9 | ) | ||||||||||||||||||||||||||||||||||||||
Modeled | (3 | ) | 6 | 1 | - | - | - | 4 | ||||||||||||||||||||||||||||||||||||||||
Total | (12 | ) | 3 | 2 | - | - | - | (7 | ) | |||||||||||||||||||||||||||||||||||||||
Owned Assets - Hedges in OCI: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actively quoted (i.e., exchange trade) prices | 46 | - | (3 | ) | - | - | - | 43 | ||||||||||||||||||||||||||||||||||||||||
Prices provided by other external sources | 2 | 1 | - | - | - | - | 3 | |||||||||||||||||||||||||||||||||||||||||
Modeled | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Total | 48 | 1 | (3 | ) | - | - | - | 46 | ||||||||||||||||||||||||||||||||||||||||
Owned Assets- Cost Recovery Clause: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actively quoted (i.e., exchange trade) prices | 14 | - | - | - | - | - | 14 | |||||||||||||||||||||||||||||||||||||||||
Prices provided by other external sources | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Modeled | 2 | - | - | - | - | - | 2 | |||||||||||||||||||||||||||||||||||||||||
Total | 16 | - | - | - | - | - | 16 | |||||||||||||||||||||||||||||||||||||||||
Total sources of fair value | $ | 53 | $ | 5 | $ | - | $ | - | $ | - | $ | 2 | $ | 60 | ||||||||||||||||||||||||||||||||||
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| FPL | FPL |
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| FPL | FPL | ||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||
December 31, 2002 | $ | - | $ | - | $ | - | $ | 1 | $ | 3 | $ | 4 | $ | 1 | $ | 3 | $ | 4 | ||||||||||
June 30, 2003 | $ | - | $ | - | $ | - | $ | 5 | $ | 5 | $ | 7 | $ | 5 | $ | 4 | $ | 7 | ||||||||||
Average for the period ended | ||||||||||||||||||||||||||||
June 30, 2003 | $ | - | $ | - | $ | - | $ | 3 | $ | 4 | $ | 6 | $ | 3 | $ | 4 | $ | 6 | ||||||||||
_____________________ | ||||||||||||||||||||||||||||
(a) | Non-managed hedges are employed to reduce the market risk exposure to physical assets which are not marked-to-market. The VaR figures for the non-managed hedges and hedges in OCI category do not represent the economic exposure to commodity price movements. |
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June 30, 2003 | December 31, 2002 | |||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
(millions) | ||||||||||||||||||||
Long-term debt of FPL, including current maturities | $ | 2,997 | $ | 3,199 | (a) | $ | 2,434 | $ | 2,578 | (a) | ||||||||||
Long-term debt of FPL Group, including current maturities | $ | 6,941 | $ | 7,547 | (a) | $ | 5,895 | $ | 6,222 | (a) | ||||||||||
_____________________ | ||||||||||||||||||||
(a) Based on quoted market prices for these or similar issues. | ||||||||||||||||||||
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PART II - OTHER INFORMATION | |||||||||
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| Against or | ||||||||
H. Jesse Arnelle | 151,977,488 | 3,414,376 | |||||||
Sherry S. Barrat | 141,890,445 | 13,501,419 | |||||||
Robert M. Beall, II | 141,827,070 | 13,564,794 | |||||||
J. Hyatt Brown | 133,302,709 | 22,089,155 | |||||||
James L. Camaren | 152,254,547 | 3,137,317 | |||||||
Alexander W. Dreyfoos, Jr. | 141,744,440 | 13,647,424 | |||||||
Paul J. Evanson (resigned 6/9/03) | 152,087,822 | 3,304,042 | |||||||
Lewis Hay III | 150,949,461 | 4,442,403 | |||||||
Frederick V. Malek | 141,708,566 | 13,683,298 | |||||||
Paul R. Tregurtha | 151,182,181 | 4,209,683 | |||||||
Frank G. Zarb | 152,143,240 | 3,248,624 | |||||||
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Dennis P. Coyle | Lawrence J. Kelleher | ||||||||
Moray P. Dewhurst | Armando J. Olivera | ||||||||
Paul J. Evanson (resigned 6/9/03) | Antonio Rodriguez | ||||||||
Lewis Hay III | John A. Stall | ||||||||
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12(a) | Computation of Ratio of Earnings to Fixed Charges | x | ||||
12(b) | Computation of Ratios | x | ||||
31(a) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of FPL Group | x | ||||
31(b) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of FPL Group | x | ||||
31(c) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of FPL | x | ||||
31(d) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of FPL | x | ||||
32(a) | Section 1350 Certification of FPL Group | x | ||||
32(b) | Section 1350 Certification of FPL | x | ||||
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SIGNATURES | ||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. | ||||
FPL GROUP, INC. | ||||
FLORIDA POWER & LIGHT COMPANY | ||||
(Registrants) | ||||
Date: August 7, 2003 | ||||
K. MICHAEL DAVIS | ||||
K. Michael Davis |