FPL Group Inc. (FPL) said its Florida Power & Light unit,
the largest electric utility in Florida, will spend $2 billion
modernizing two power plants despite a tough economy and cut 300
positions.
FPL has struggled of late amid a weak Florida economy and a
difficult regulatory environment. It was recently downgraded by
Moody's Investors Services and Standard & Poor's Rating
Services.
Modernizations at the Riviera Beach and Cape Canaveral power
plants will save customers $850 million to $950 million over the
life of the facilities, said FPL. The new units will reduce
particulate emissions by 88% at the sites and improve their
carbon-dioxide emission rate by more than half.
The staff cuts amount to a reduction of less than 3% of the
company's total workforce, it said, and are the result of sharply
curtailed new-home construction. FPL estimated 425 employees will
depart but selective hiring will partially offset that. It
anticipates 220 employees will take buyouts.
FPL thinks "keeping operating costs in line while continuing to
invest" in its infrastructure is the best long-term course,
President and Chief Executive Armando J. Olivera said.
The stock closed at $50.69 Thursday and was inactive premarket.
Shares have fallen 5.8% the past year.
-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240,
matthew.jarzemsky@dowjones.com