NEW YORK (Standard&Poor's) Aug. 18, 2004--The financial impact of Hurricane Charley cannot be fully assessed at this point because neither Florida Power&Light (FPL; A/Negative/A-1) nor Progress Energy Florida (PEF; BBB/Stable/A-2) have publicly released restoration cost estimates. Both companies expect to rely on storm damage reserve. Contributions to the storm reserve are approved by the Florida Public Service Commission; annual contributions are funded through rates. FPL's reserve totals $340 million ($208 million in cash with a related deferred tax benefit of $132 million as of June 30, 2004), while PEF's reserve has $41 million accrued with no cash set aside. PEF will fund cash expenditures, both capital and operations and maintenance costs, from working capital and may
