High-quality electric utility that generates steady earnings and cash flows Low regulatory risk in Florida Relatively strong service territory with good customer growth prospects and a predominantly residential and commercial base Unregulated merchant energy activities detract from consolidated business risk profile despite active efforts to reduce commodity price risk Diversification in and among competitive energy businesses offsets some of the weakness they bring to the credit profile Aggressive capital spending plans depress financial measures Dependence on natural gas to generate electricity in Florida could raise regulatory risk in a rising price environment Credit measures only marginally support our assessment of the financial risk profile, but we project improvement High capital spending and substantial common dividends create a persistent condition of
