FPSC Ten Year Plan Workshop Nuclear Panel

1. FPSC Ten Year Plan WorkshopNuclear Panel Steven Scroggs Senior Director, Project Development Florida Power & Light Company August 15, 2007

2. Overview • Nuclear Generation & Florida’s Energy Needs • FPL’s Two Part Plan • Increasing Existing Nuclear Capacity • Pursuing New Nuclear Generation

3. Meeting Florida’s Needs • Additional nuclear generation capacity will help Florida achieve its goals: • Supportive of Governor’s Executive Order 07-127 on Greenhouse Gas reductions

4. Meeting Florida’s Needs • Additional nuclear generation capacity will help Florida achieve its goals: • Supportive of Governor’s Executive Order 07-127 on Greenhouse Gas reductions • Proven baseload technology to increase energy independence and supply reliability

5. Natural Gas Supply Reliability FGT System Gulfstream Gulf Supply Basin • Two pipelines provide natural gas to generate approximately 50% of FPL energy needs • Segment will continue to grow to as much as 70% by 2017 • Gulf supply region prone to disruptions from hurricanes

6. Meeting Florida’s Needs • Additional nuclear generation capacity will help Florida achieve its goals: • Supportive of Governor’s Executive Order 07-127 on Greenhouse Gas reductions • Proven baseload technology to increase energy independence and supply reliability • A critical part of a portfolio of environmentally responsible generation alternatives

7. Mix of Resources Needed Daily Capacity Demand (MW) Variable Demand Baseload Demand 0 2 4 6 8 10 12 2 4 6 8 10 12 AM Hours PM Hours

8. FPL’s Plan for Nuclear

9. A Two Part Plan • Increase the capacity of FPL’s existing Nuclear Power Units (Power “Up-rate”) • Improvements increase capacity 400 MW by 2012 • Proven process, leveraging existing investments • Pursue Two New Nuclear Power Units (Turkey Point 6 & 7) • Would add up to 3,000 MW depending on the technology selected • First unit targeted for 2018, second unit by 2020

10. Power Up-rate Schedule • Improvements will be coordinated with current maintenance schedule • and staged over several refueling outages • No change to structures or facility footprint

11. The Option for New Nuclear • Action is needed to preserve the option • Development of the license applications is the next step • Timeline for equipment procurement starts well before construction, impacts target operation date • Challenges in many areas • New Reactor Licensing Process • No new orders in the U.S. for past thirty years • Supply chain and Skilled Labor force rebuilding

12. Turkey Point 6 & 7 Schedule • Licenses and Approvals are expected to require 5 years • Construction and Testing is estimated to require 5 years • Annual Nuclear Cost Recovery Process will monitor progress and • review project feasibility

13. Site & Design Selection • Turkey Point offers significant advantages • Efficient use of existing site and infrastructure • Located close to load, reducing transmission needed • Only 8 miles of additional transmission ROW required • Five competing nuclear designs under review • Technical; review conducted, all viable and safe • Cost and Risk Management; • Engaging vendors now, selection early 2008

14. Coordination Necessary to Achieve Success • Timely Regulatory Actions are Key • Licensing and Approvals process is complex, requiring coordination and cooperation of many agencies at all levels to keep project moving forward on schedule • Clear communication and timely execution of regulatory steps will avoid delays • Capital Markets will view active regulatory involvement and support as essential