December 17, 2001

FPL Energy begins construction of New York City peaking unit

JUNO BEACH, Fla. -- FPL Energy, LLC, a subsidiary of FPL Group (NYSE:FPL) today announced it will soon begin construction of a 54-megawatt natural gas-fired peaking unit to supply electricity to the Long Island Power Authority (LIPA) for the Rockaway Peninsula in Queens County, New York City.

FPL Energy expects to complete construction of Bayswater Clean Energy Center by late spring, 2002, in time to provide power during the area's warm summer months.

The output of the facility will be sold to LIPA under a long-term power contract. It is anticipated that the facility will operate only during periods of peak demand and will help meet the growing energy demands of the Rockaway Peninsula.

"We're excited about the opportunity to serve the growing New York market and, together with LIPA, bring needed power supply to the Rockaway Peninsula," said Ron Green, FPL Energy President.

"We're pleased that FPL Energy is moving forward with the Bayswater project," said LIPA Chairman Richard M. Kessel. "The new generation station will play a key role in supplying the Rockaway Peninsula with clean, dependable electricity."

While the Bayswater Clean Energy Center represents FPL Energy's first generation in New York, the company is a leading independent producer of clean energy, including natural gas, wind, solar and hydroelectric. FPL Energy owns and operates power plants with more than 4,400 total net megawatts in 12 states across the country.

FPL Group, with annual revenues of more than $8 billion, is one of the nation's largest providers of electricity-related services. FPL Group's principal subsidiary is Florida Power & Light Company, one of the nation's largest electric utilities, serving more than seven million people in Florida. Additional information is available on the Internet at www.fplenergy.com and www.fplgroup.com.

LIPA owns the retail electric business on Long Island. LIPA provides electric service to nearly 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens.