High quality electric utility generates steady cash flows; Constructive regulatory environment in Florida; and Strong customer growth with predominantly residential base. Dependent on natural gas to generate electricity; and Higher-risk cash flows from FPL Energy's merchant generation. The ratings on FPL Group Inc. reflect the strength of the regulated cash flows from the integrated electric utility, Florida Power&Light Co. (FP&L). The utility contributes to about three-quarters of the consolidated credit profile and has better business fundamentals than most of its integrated electric peers, with a healthy and growing service territory, sound operations, and a supportive regulatory environment. Detracting from credit quality are the company's increasing exposure to wholesale energy activities, its willingness to expand through acquisitions and increase
