The consolidated rating on diversified energy company FPL Group Inc. reflects the strength of the stable cash flows from the integrated electric utility in Florida, Florida Power&Light Co. (FP&L). The utility contributes about 80% of the consolidated cash flow and has an above average business profile relative to its integrated electric peers. Concerns include the higher risk cash flows from FPL Energy's portfolio of merchant generation, the utility's increased exposure to natural gas, uncertainty regarding pending regulatory proceedings, and a slightly weak consolidated company's financial profile for the rating. As of Dec. 31, 2004, Juno Beach, Fla.-based FPL had about $8.5 billion of consolidated debt. FP&L's strengths include its location in one of the fastest-growing service territories in
