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July 2000

July 2000. Confidential & Proprietary. Draft 7/7/00. Internal Presentation NewCo Overview. Internal Presentation Outline. Executive Summary Existing Asset Profile Development Pipeline Organization Financial Comparables Transaction Next Steps / Schedule / Issues. Mission Statement.

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July 2000

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  1. July 2000 Confidential & Proprietary Draft 7/7/00 Internal Presentation NewCo Overview

  2. Internal Presentation Outline • Executive Summary • Existing Asset Profile • Development Pipeline • Organization • Financial • Comparables • Transaction • Next Steps / Schedule / Issues

  3. Mission Statement • To establish a premier North American energy company involved in the businesses of: • Development, acquisition, ownership, and operation of electric power generation facilities • Optimization of generation portfolio through active risk management of assets and commodity positions

  4. Business Model • Combine physical and intellectual assets from FPL Energy and ENA • Grow through the greenfield and brownfield development of generating facilities • Optimize portfolio through active risk management of assets and commodity positions • Supplement core growth by pursuing strategic acquisitions • Retain, attract, manage and grow intellectual capital • Leverage expertise from FPL and Enron to supplement NewCo resources

  5. Growth Strategy • Achieve a five year EPS compounded annual growth rate in excess of 30% by: • Develop new power generation facilities by capitalizing on the turbine backlog • Fund of capital requirements from a combination of debt and internally generated cash • Focus on asset optimization to enhance portfolio value • Pursue strategic acquisitions • Develop wind generation facilities

  6. Financial Summary 2001 2005 • MW • Net Income • EPS • CAGR • Market Cap

  7. Benefits to Sponsors • Mutual Benefits • Realize value of unregulated generation business • Accelerate the attainment of critical mass • Diversify generation portfolio mix • Complement existing competencies • Free parent capital • Enron • Reduce investment in generation assets • Tolling arrangement • FPL Energy • New investor base • Independence from regulated side

  8. Existing Asset Profile

  9. Company Profile • National generation company that will initially have: • 6,865 MW’s of net operating capacity • 4,798 MW’s in the latter stages of development • 8,050 MW’s in turbines que spots • 19,713 MW’s of total capacity • NewCo will embody • Enron’s “trading and marketing” expertise; • FPL Energy’s “development, operational and asset management” expertise

  10. FPL Energy Maine Assets: Hydro Units (373) Yarmouth (610) Wiscasset (101) Fort Fairfield (31) Total = 1,115 MW’s MAPP NPCC MAAC WSCC MAIN Richmond, VA (665) Richmond, VA (171) Total = 836 MW’s ECAR SPP FPL Energy PJM Assets: Sayrevelle, NJ (150) Delaware Co, PA (50) Delaware Co., PA (MH) (750) Philadelphia, PA (750) Total = 1,700 MW’s FPL Energy CA Assets: Harper Lake, CA (80) Calistoga, CA (40) China Lake, CA (4) Altamont Pass, CA (145) Tehachapi, CA (180) Total = 449 MW’s SERC ERCOT Remove development projects Existing Assets Location Everett, WA (248) Helix, OR (25) West Bend, WI (30) Clear Lake, IA (42) Bellingham, MA (150) Bellingham, MA (500) Sarnia (320) Manhattan (650) Providence, RI (500) Wheatland (503) Hurt, VA (32) Pastoria (750) LV Cogen (270) Gleason (533) Gaffney, SC (50) Brownsville (492) New Albany (391) Paris, TX (990) Caledonia (498) Pecan, TX (250) McCamey, TX (75) FPL Assets In Operation Under Construction Development

  11. Portfolio Breakdowns Add charts showing: - Merchant vs Contract - Merrit order

  12. Development Pipeline

  13. Development Assets • Major Equipment Secured • 47 GE 7FA and 6 LM 6000 combustion turbines (11,750 MW combined cycle capacity) • GE 7FA ship dates: 2001 (9), 2002 (14), 2003 (12), and 2004 (12) • FPLE to execute master steam turbine agreement; HRSG agreement is executed • Substantial Development Talent • Forty five (45) developers located in all NERC regions • ENA and FPLE possess complementary regional staffing • Parent company technical expertise available

  14. Development Pipeline • Advanced Development Projects (5,048 MW) • ENA controls three projects totaling 1,392 MW in operation by 2003 • FPLE controls ten projects totaling 3,656 MW in operation by 2003 • Very high probability of success • Twenty Five (25) Greenfield Sites • ENA controls 17 sites • FPLE controls 10 sites • Development Acquisition (14,592 MW) • FPLE actively pursues acquiring third party development rights

  15. FPL Energy Maine Assets: Hydro Units (373) Yarmouth (610) Wiscasset (101) Fort Fairfield (31) Total = 1,115 MW’s MAPP NPCC MAAC WSCC MAIN Richmond, VA (665) Richmond, VA (171) Total = 836 MW’s ECAR SPP FPL Energy PJM Assets: Sayrevelle, NJ (150) Delaware Co, PA (50) Delaware Co., PA (MH) (750) Philadelphia, PA (750) Total = 1,700 MW’s FPL Energy CA Assets: Harper Lake, CA (80) Calistoga, CA (40) China Lake, CA (4) Altamont Pass, CA (145) Tehachapi, CA (180) Total = 449 MW’s SERC ERCOT Location of Development Pipeline Everett, WA (248) Helix, OR (25) West Bend, WI (30) Clear Lake, IA (42) Bellingham, MA (150) Bellingham, MA (500) Sarnia (320) Manhattan (650) Providence, RI (500) Wheatland (503) Hurt, VA (32) Pastoria (750) LV Cogen (270) Gleason (533) Gaffney, SC (50) Brownsville (492) New Albany (391) Paris, TX (990) Caledonia (498) Pecan, TX (250) McCamey, TX (75) FPL Assets In Operation Include advanced development and Early projects by region Under Construction Development

  16. Organization

  17. Organizational Philosophy • NewCo will utilize intellectual resources from both sponsors to staff a fully functional world class generation company • Both sponsors will make candidates available for senior management positions • Majority of personnel will be provided by FPL Energy • Enron to contribute personnel to supplement the organization and fill any gaps • Support services agreements will be used to contract for services that are more effectively provided by the sponsor companies • Establish policies and incentives to attract, retain, manage and grow intellectual capital

  18. Sources of NewCo’s Capabilities Enron FPL NewCo Development   Power/Gas Trading and Marketing    Asset Management   Operations   Finance    Technical Support   Construction Management    Legal    Information Management    Human Resources   

  19. FPL Energy Organization Chart

  20. Shared Services Currently Provided by FPL

  21. Trading and Marketing Org. Chart

  22. Support Services • FPL • Technical • Human Resources • Information Management • Enron • Trading Systems • QF Restructuring

  23. Attracting and Retaining Intellectual Capital (TBD) • Compensation • Benefits

  24. Financial

  25. Comparables

  26. Comparables to NewCo

  27. Transaction

  28. ENRON FPL Peakers, Development Projects & Turbines (Total 5,000+ MWs) Sites, People, 3-year toll Projects, Development & Turbines (Total 15,427 MWs) Sites, People $/Note/Equity Services Agreements $/Note/Equity Services Agreements NEWCO (20,000+ MWs) $ Shares LENDERS, DEBT HOLDERS INVESTORS $ Notes

  29. Unparalleled scale and scope Complimentary capabilities provides for world class GenCo Provides for multiple expansion and maximum value Creates national portfolio with good asset and fuel mix Transaction Rationale

  30. Capabilities Enron FPL NewCo National Power/Gas Trading and Marketing   Technology Infrastructure   Construction and development backlog    Existing asset base    Management/lead sponsorship   Operations   Keys to Success World class GENCO + ENRON FPL

  31. Issues

  32. Issues (TBD) • ROFR • Non-compete • Valuation • Support Services Agreement • Negotiation and documentation • Selection of Investment Bank

  33. Next Steps

  34. Unused Slides

  35. NewCo Strengths • Sites: • NewCo will have over 2 dozen sites in various stages of the permitting and siting processes • Regional Diversification: • NewCo will have assets in the WSCC, SERC, ECAR, MAIN and Nepool regions • Marketing and Trading: • Risk Management

  36. Strong Parent Company Sponsorship • Enron: • FPL Energy:

  37. Enron Sites: SERC: 5 sites ECAR: 2 sites SPP: 6 sites MAIN: 3 sites NEPOOL: 1 site FPL Energy Sites: NewCo’s Development Sites

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