Overall Analysis
FPL faces many challenges. The recent drop in stock price, along with the favorable estimation of future earnings would inevitably suggest a buy recommendation. After researching the electrical utilities industry, it is apparent that FPL is on the brink of a major change in their industry. It becomes increasingly difficult to predict how Florida will implement deregulation within the industry. The thought of retail wheeling is not assuring; however, we feel that FPL is a strong company choosing to make a preemptive move to prepare for the future changes in their industry. We anticipate deregulation in distribution to be fully implemented by the Florida government and FPL will be ready to handle the competition.