Monday, October 27, 2008

FPL Group net rises 45% on hedging gain

Utility firm cuts capital spending by $1.7 billion, including wind projects
From MarketWatch:
FPL Corp. on Monday reported third-quarter net income rose 45%, mostly on a gain from hedges, as the parent of Florida Power & Light Co. moved to cut capital spending by $1.7 billion and curb its profit outlook in the face of the economic slowdown....

FPL said in light of the current economic and credit environment, it'll reduce capital expenditures to $5.3 billion from $7 billion in 2009.
Of the $1.7 billion reduction, $1.3 billion involves deferring new-project development at FPL Energy, including wind energy projects.
FPL Energy had previously planned to add 1,500 megawatts in 2009; the revised plan is to build 1,100 megawatts.
In addition, FPL plans to reduce 2009 capital spending by $400 million for projects associated with system growth that is no longer expected.
"Current planning allows the flexibility to quickly ramp plans up or down as credit and market conditions change," FPL said...