Original plans called for capital expenditures of approximately $7 billion in 2009, but the revised plan now calls for approximately $5.3 billion.
Of the $1.7 billion reduction, approximately $1.3 billion involves the deferral of new project development at FPL Energy. The company had previously planned to add approximately 1,500 MW in 2009, but the revised plan is to build approximately 1,100 MW.
In addition, FPL plans to reduce 2009 capital expenditures by approximately $400 million for projects associated with system growth that is no longer expected.
Current planning allows the flexibility to quickly ramp plans up or down as credit and market conditions change. In addition, FPL Group’s current approach also preserves the ability to make “buy vs. build” decisions should attractive market opportunities present themselves.
For 2008, FPL Group expects adjusted earnings per share to come in at the lower end of the $3.83 to $3.93 range that was previously provided, given normal weather and no further material decline in the Florida economy. For 2009 and 2010, FPL Group is reaffirming adjusted earnings per share of $4.05 to $4.25 and $4.50 to $4.90, respectively.
FPL Group’s adjusted earnings expectations assume normal weather and operating conditions and exclude the effect of adopting new accounting standards, if any, and the mark-to-market effect of non-qualifying hedges and OTTI, neither of which can be determined at this time.
Stories of interest