NEW YORK (Standard&Poor's) July 5, 2005--Standard&Poor's Ratings Services said today that FPL Group Inc.'s (A/Negative/--) announcement that its unit, FPL Energy LLC, is acquiring 70% of the Duane Arnold nuclear facility from Interstate Power&Light Co. (BBB+/Negative/A-2) is neutral to FPL's credit quality and does not affect the rating on the company. The acquisition is in line with FPL's stated strategy, which includes acquiring generation assets with long-term contracts, adding nuclear generation, and financing a portion of the purchase with equity (the current transaction is expected to be approximately 50% equity). Although FPL Energy will be able to leverage its operational expertise, this plant has a boiling water reactor, which is different from its five
