July 8, 2002

FPL Energy's Bayswater Energy Center declared fully operational

JUNO BEACH, Fla. -- FPL Energy, a subsidiary of FPL Group, Inc. (NYSE:FPL), today announced full operation of its Bayswater Energy Center, a 54-megawatt electricity generating unit located on the Rockaway Peninsula in New York City.

The Bayswater plant is FPL Energy's first generating station in New York.

FPL Energy is selling the output of the plant to the Long Island Power Authority (LIPA) under a long-term contract. The facility is what is called a "peaking unit," providing energy to LIPA's Rockaway customers when power is most needed.

"We're pleased that the Bayswater Energy Center is now fully operational and able to support LIPA's energy needs for the Rockaways just in time to meet increased demand this summer," said FPL Energy President Ron Green. Construction on Bayswater began in December 2001.

"The Bayswater Energy Center is a welcome addition to our electric power resources," said LIPA Chairman Richard M. Kessel. "As we enter the peak summer demand period, we're pleased that FPL Energy completed the Bayswater project, and that it is now available to meet the needs of our customers."

FPL Energy is a leading independent producer of clean energy from natural gas, wind, solar and hydroelectric. The company's portfolio includes 76 facilities totaling more than 10,600 megawatts in operation, under construction, or announced acquisitions in 19 states. Wind power represents 28 percent of the company's portfolio, with a total of 80 percent being fueled by renewable sources or clean burning natural gas. FPL Energy is a subsidiary of FPL Group, one of the nation's largest providers of electricity-related services.

FPL Group has annual revenues of more than $8 billion. Its principal subsidiary is Florida Power & Light Company, one of the nation's largest electric utilities, serving more than 4 million customer accounts in Florida.

LIPA owns the retail electric system on Long Island and provides electric service to nearly 1.1 million customers in Nassau and Suffolk counties, and in the Rockaway Peninsula in Queens. In terms of customers served, LIPA is the third largest municipal electric system in the nation.