High-quality electric utility generates steady cash flows; Low regulatory risk in Florida; and Relatively strong customer growth with predominantly residential and commercial base. Dependence on natural gas to generate electricity; and Higher-risk cash flows from subsidiary NextEra's merchant generation and other unregulated activities. 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), as well as the diverse and substantial cash generation capabilities of its unregulated operations at its subsidiary, NextEra Resources. The utility contributes about half of the consolidated credit profile and has better business fundamentals than most of its integrated electric peers, with a better-than-average service territory, sound operations, and a supportive regulatory
