EXHIBIT 99(b)
LOGO
FPL Group Seabrook Station
- ----------------------------------------------------------------
April 15, 2002
FPL Group Announces Agreement To Purchase Controlling Interest in
Seabrook Nuclear Plant
- ---------------------------------------------------------------------
JUNO BEACH, FL and Seabrook, NH - FPL Group, Inc. (NYSE: FPL)
announced today it has reached an agreement to buy a majority
interest in the Seabrook Nuclear Generating Station from a consortium
of owners.
Under terms of the agreement, FPL Group, a leading U.S. electric
company, will purchase an 88.2 percent interest in Seabrook for a
total of $836.6 million, including:
Plant (including decommissioning trust fund) $749.1 million
Nuclear Fuel $ 61.9 million
Unit 2 Components $ 25.6 million
FPL Group will assume responsibility for ultimate
decommissioning of the facility and will receive the Seabrook
decommissioning funds, expected to be $232.7 million at closing
including the sellers' top-off payment.
FPL Group is targeting to close the acquisition around the end
of 2002 and anticipates financing the transaction through a
combination of equity and debt. Based on current forward energy
prices, the company expects the transaction to be modestly accretive
to earnings per share in 2003 and contribute 10 to 12 cents per
share on average each year over the following three years. It
expects accretion to accelerate thereafter.
Seabrook, a 1,161-megawatt pressurized water reactor that began
operating in 1990, is located on a 900-acre site in the towns of
Seabrook, Hampton and Hampton Falls in New Hampshire and about 40
miles north of Boston. It provides approximately seven percent of
the electrical power in New England.
The purchase agreement was reached through an auction process,
launched in late 2001 and supervised by the New Hampshire Public
Utilities Commission (NHPUC) in coordination with the Connecticut
Department of Public Utility Control (CD PUC).
Members of the Seabrook consortium selling their interests
include: Northeast Utilities (NYSE: NU), the United Illuminating
Company (NYSE: UIL), BayCorp Holdings (AMEX: MWH), National Grid
Group plc (LSE and NYSE:NGG), NSTAR (NYSE: NST) and the New Hampshire
Electric Cooperative. The remaining interests are being retained by
Massachusetts Municipal Wholesale Electric Company, Taunton Municipal
Lighting Plant and Hudson Light & Power Department.
Lew Hay, chairman and chief executive officer of FPL Group,
said:
"We are excited to become the owner of such an outstanding
nuclear power plant, one of the newest in the U.S. and one we believe
to be the premier generating plant in the Northeast.
"This acquisition supports our strategy to become a major energy
provider in the Northeast region. It is highly complementary to our
current Northeast portfolio, which includes more than 1,400 megawatts
of hydro and fossil-fueled generating plants, and a 535-megawatt gas-
fired plant to be completed later this summer. Seabrook provides
additional diversity in fuel and location within the region and will
further enhance our regional portfolio. It will provide substantial
low-cost, reliable power for FPL Energy to market in conjunction with
the rest of our Northeast capacity through a series of long-term and
short-term contracts."
"Seabrook is a high-quality and safely operated plant. We are
confident that our combined team will be able to operate it at levels
of safety and operational performance comparable to our other nuclear
plants," said Mr. Hay.
Seabrook Station will become a part of FPL Energy, the
independent power producer subsidiary of FPL Group. Seabrook will
represent more than one-third of FPL Energy's power generation assets
in the Northeast and will increase the subsidiary's 5,063 net-
megawatts of capacity nationwide by more than 20 percent.
Ted Feigenbaum, executive vice president and chief nuclear
officer for Seabrook Station, said:
"We are extremely pleased that Seabrook is being sold to an
outstanding company committed to operating a safe and successful
nuclear power program.
"The men and women of Seabrook Station have worked hard to
fulfill their commitment to become world class. FPL Group's purchase
of Seabrook is clear evidence that this hard work is highly valued by
a company with an outstanding record of operations. FPL Group's
strong focus on safety, quality and continuous improvement is a
perfect environment for the Seabrook team.
"We are also very pleased that FPL Group is a company totally
dedicated to environmental stewardship and to playing a vital role as
a committed good neighbor. The men and women of Seabrook are an
important part of the fabric of life in Seacoast New Hampshire, and
our neighbors will be very pleased to see that this participation and
commitment will continue under FPL Group ownership.
"We are gratified by the way this sale was conducted,"
Feigenbaum said. "We applaud the dedicated leadership and staff in
the New Hampshire Public Utilities Commission, the Connecticut
Department of Public Utility Control, as well as the hard work of the
auction agent team from JPMorgan. We especially appreciate the
sensitivity and understanding shown by all parties for the welfare
and protection of all our Seabrook employees."
Approvals for the transaction are needed from federal and state
regulatory agencies, including public utility commissions in the
owners' states as well as the Nuclear Regulatory Commission, the New
Hampshire Nuclear Decommissioning Financing Committee, the Federal
Energy Regulatory Commission, and the Department of Justice or the
Federal Trade Commission.
FPL Energy has no plans to complete Seabrook Unit 2 and plans to
maintain the facility in an aesthetically improved condition.
FPL Energy will draw on the experience of the existing Seabrook
nuclear team and on the expertise of its sister subsidiary, Florida
Power & Light Company (FPL), to manage and operate Seabrook.
"FPL's nuclear division has an excellent record of operating
nuclear plants safely and reliably," said Art Stall, senior vice
president of FPL's nuclear division.
FPL's nuclear plants are similar in design to Seabrook. The
company's two-unit 1,386-megawatt Turkey Point plant is a pressurized
water reactor located 25 miles south of Miami. Its two-unit, 1,678-
megawatt St. Lucie plant is also a pressurized water reactor located
near Ft. Pierce and Stuart adjacent to the Atlantic Ocean.
Both Turkey Point and St. Lucie have consistently maintained the
highest of safety and operational performance based upon the Nuclear
Regulatory Commission's safety indicators as well as the World
Association of Nuclear Operators' overall performance index.
"Both the FPL and the Seabrook nuclear programs are focused on
safety and continuous improvement. We are looking forward to working
with the Seabrook employees in further enhancing performance," said
Mr. Stall.
Under the terms of the agreement, FPL Group has agreed to all
employee protections set forth in the purchase agreement, including
labor agreements and employment for all Seabrook employees at
comparable wages and benefits for one year following the close of the
sale.
"FPL Group has a long-standing commitment to community
involvement and support," said Mr. Hay. "We're eager to become a
part of the New Hampshire community."
The company pays particular attention to environmental
stewardship and has received numerous awards for its efforts. Just
this month, FPL Energy's Maine hydro operations received the
Outstanding Stewardship of America's Rivers award from the National
Hydropower Association for its balance of environmental stewardship
and improved recreational usage of the Kennebec River near the
company's Harris Station. In the coming weeks, FPL Group senior
executives will be meeting with Seabrook area community leaders and
residents to begin a dialogue about the nuclear plant.
"We believe our decision to invest in New Hampshire will be
welcomed by customers, employees, the community and shareholders,"
said Mr. Hay.
The auction process to sell the Seabrook Station was managed by
JPMorgan, which acted as exclusive financial advisor, auction advisor
and asset sale manager to the NHPUC and the CT DPUC on this
transaction. Merrill Lynch acted as exclusive financial advisor to
FPL Group on this transaction.
FPL Group, with annual revenues of more than $8 billion, is
nationally known as a high-quality, efficient, and customer-driven
organization focused on energy-related products and services. With a
growing presence in more than a dozen states, it is widely recognized
as one of the country's premier power companies. Its principal
subsidiary, Florida Power & Light Company, serves approximately 4
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 and is the nation's leader in wind
energy. It operates a 5,063-megawatt portfolio of plants in 14
states. Additional information is available on the Internet at www.
FPLgroup.com, www.FPL.com and www.FPLenergy.com.
Safe Harbor Statement: Any statements made herein about future
operating results or other future events are forward-looking
statements under the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Actual results may differ
substantially from such forward-looking statements. A discussion of
factors that could cause actual results or events to vary is
contained in FPL Group's 2001 SEC Form 10-K.
PRESS CONFERENCE ADVISORY:
FPL Group and Seabrook Station executives will hold a press
conference at 10:30 a.m. Tuesday, April 16 at the Hampshire Inn on
Route 107 in Seabrook, New Hampshire. Participating in the
conference will be Lew Hay, chairman and CEO of FPL Group. The press
conference also may be accessible by calling 1-800-886-9041, code
349389.
###
MEDIA CONTACTS
COMPANY TELEPHONE NAME
FPL Group 305-552-3888 Carol Clawson or Rachel Scott
Seabrook Station 603-773-7719 Alan Griffith
New Hampshire 603-536-8658 Dena Lee DeLucca
Electric Cooperative Inc.
NSTAR 617-424-2460 Mike Monahan
617-541-7888 (24 hr number)
United Illuminating 203-499-2204 Kevin Moore
Northeast Utilities 860-665-3409 Frank Poirot
BayCorp Holdings 207-451-9573 Anthony Callendrello
National Grid 508-389-3298 Jackie Barry
JPMorgan 212-622-2287 Paul Dabbar