Filed by FPL Group, Inc.
Subject Company: Gexa Corp.
This filing includes a press release issued by FPL Group, Inc. on May 25, 2005.
Mark D. Cook
FPL Group Resources
May 25, 2005
SGR Holdings and FPL Group Resources sign MOU for gas storage project
HOUSTON, Tx. and JUNO BEACH, Fla. -- SGR Holdings, L.L.C. and FPL Group Resources LLC, a subsidiary of FPL Group, Inc. (NYSE: FPL), announced today that they have signed a memorandum of understanding to jointly construct, own and operate the Southern Pines Energy Center, a new salt-dome natural gas storage project to be located in Greene County, Mississippi.
Construction of the Southern Pines Energy Center is expected to begin in late summer of 2005, with the first phase of commercial operations expected to begin late in the first quarter of 2007.
All major federal and state permits required for the construction of the initial phases of the Southern Pines Energy Center have been obtained. Southern Pines is currently authorized to provide 12 billion cubic feet (Bcf) of natural gas storage capacity on an open-access basis at market-based rates subject to authorizations that have been granted by the Federal Energy Regulatory Commission (FERC). Once completed, the project will be capable of withdrawals of up to 1.2 Bcf and injections of up to 0.6 Bcf of natural gas per day. The agreement provides for the expansion of the Southern Pines facility to a total capacity of 16 Bcf.
Southern Pines is currently authorized to interconnect with Destin Pipeline Company, LLC, and expects to add additional interconnects with Florida Gas Transmission Company, Transcontinental Gas Pipe Line Corporation, and Gulfstream Natural Gas System, LLC. Southern Pines will also offer indirect access to the Southern Natural Gas Company, Tennessee Gas Pipeline Company, and Gulf South Pipeline Company, LP systems.
According to A.J. (Tony) Clark, a principal of SGR Holdings, "We are excited to have the opportunity to partner with FPL Group. We believe that the Southern Pines Energy Center will be a critically important means of ensuring that the Southeast continues to have reliable access to adequate natural gas supplies to meet growing weather-sensitive demand."
Brad Williams, vice president of gas projects for FPL Group Resources said, "The Southern Pines project will add another important element of the energy value chain to FPL Group's portfolio that will provide supply security and flexibility to customers."
"As our nation's natural gas markets experience increasing volatility, pipelines, utilities, suppliers and end users should all benefit from the reliability, flexibility, and daily balancing that Southern Pines will provide," said Mark D. Cook, a principal of SGR Holdings. "With its multiple direct pipeline interconnections and its proximity to proposed LNG import facilities along the Gulf Coast, the Southern Pines Energy Center is ideally located to become a supply and storage market hub serving the southeastern, mid-Atlantic and northeastern United States."
The Southern Pines Energy Center is currently offering prospective customers the opportunity to contract for storage capacity, injection rights, and deliverability under firm storage service agreements governed by the company's FERC Gas Tariff. Southern Pines has a limited quantity of storage capacity available for the first quarter of 2007. Expressions of interest in Southern Pines service should be directed to SGR Holdings' Mark D. Cook, at (713) 914-8187, or firstname.lastname@example.org.
SGR Holdings, L.L.C., a privately held Houston-based company, develops, owns, and operates high-deliverability, salt cavern natural gas storage facilities. Prior to SGR Holdings' formation, the company's management led the Market Hub Partners group from its creation in 1994 to its attainment of industry-recognized status as the largest owner/operator of salt cavern natural gas storage facilities in the United States. Further information concerning SGR Holdings is available on the Internet at www.sgr-holdings.com.
FPL Group, with annual revenues of more than $10 billion, is nationally known as a high quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4.2 million customer accounts in Florida. FPL Energy, LLC, an FPL Group wholesale electricity generating subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPLGroup.com, www.FPL.com and www.FPLEnergy.com.
ADDITIONAL INFORMATION ON GEXA TRANSACTION
FPL Group has filed a registration statement on Form S-4 (File No. 333-124438), including a proxy statement of Gexa Corp. ("Gexa") and FPL Group's prospectus and other relevant documents with the Securities and Exchange Commission ("SEC") concerning the proposed transaction. You are urged to read the registration statement containing the proxy statement/prospectus (including all amendments and supplements) and any other relevant documents filed or that will be filed with the SEC because they contain or will contain important information about FPL Group, GEXA and the proposed transaction. You may obtain the registration statement containing the proxy statement/prospectus and the other documents, as well as other filings containing information about FPL Group and Gexa, free of charge at the SEC's web site, www.sec.gov. In addition, they may also be obtained for free from FPL Group by directing a request to FPL Group, Inc. 700 Universe Blvd., Juno Beach, Florida, 33408, Attention: Investor Relations and from GEXA by directing a request to GEXA Corp., 20 Greenway Plaza, Suite 600, Houston, Texas, 77046, Attention: Dave Holeman. FPL Group, GEXA and their respective directors and executive officers and other members of management and employees, may be deemed to be participants in the solicitation of proxies from the stockholders of GEXA in connection with the transaction. Information about the direct or indirect interests of FPL Group is set forth in its report on Schedule 13D filed with the SEC. Information about the directors and executive officers of FPL Group is set forth in its proxy statement for its 2005 annual meeting of shareholders and its annual report on Form 10-K for the fiscal year ended 2004 and information about the directors and executive officers of GEXA and their ownership of GEXA stock is set forth in the report on Form 10-K/A of GEXA filed April 29, 2005, the ownership reports of such persons on Schedule 13D and Forms 3 and 4 filed with the SEC and in the registration statement and the proxy statement/prospectus. You may obtain additional information regarding the interests of such potential participants by reading the proxy statement/prospectus and other relevant documents filed with the SEC.
CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby filing cautionary statements identifying important factors that could cause FPL Group's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and FPL in this press release, in presentations, in response to questions or otherwise. Any statements that express, or involve discussions as to expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.
Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The following are some important factors that could have a significant impact on FPL Group's and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:
The issues and associated risks and uncertainties described above are not the only ones FPL Group and FPL may face. Additional issues may arise or become material as the energy industry evolves. The risks and uncertainties associated with these additional issues could impair FPL Group's and FPL's businesses in the future.
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