MIAMI, Fla.--(BUSINESS WIRE)--Nov. 11, 2005

Following are answers to some questions and issues recently in the news regarding Florida Power & Light Company, and reimbursement for "lost revenue" associated with the 2004 hurricane season.

-- FPL did not recover "lost revenues" or charge customers for power not received. FPL recovered only those costs directly related to restoring power after three hurricanes in 2004.

-- FPL's base rate charge has never fully reflected the cost of storm restoration. That is why the Commission has always contemplated that a surcharge might be necessary to recover the costs of extraordinary storm events.

-- FPL's storm restoration costs in 2004 far exceeded its storm reserve. As a result, the Commission ruled that it was appropriate for FPL to recover expenses directly related to hurricane restoration efforts through a temporary surcharge.

-- FPL filed for storm cost recovery with the same methodology that it had been using since the mid-'90s - that is, all costs incurred in storm restoration were charged against the storm reserve.

-- The Commission, at the urging of the Office of Public Counsel and other interested parties, adopted a new methodology that excluded certain expenses it considered already included in the company's base rates, such as normal employee wages and other costs. But because FPL did not receive those base rate charges during the period of restoration, FPL was allowed to recover those costs directly incurred in support of the storm restoration, but only up to the amount that otherwise would have been collected through base rates such that only FPL's actual costs would be recovered.

-- This is not recovery of "lost revenues" or charging for power not received. Rather, it is recovery of only direct and prudently incurred costs in restoring power to 5.4 million homes and businesses affected by three consecutive hurricanes in a little more than six weeks, an accomplishment unprecedented in the utility industry.