Case Study and Statistics on FPL Energy
Case Study and Statistics on FPL Energy
FPL Energy is one of the nation’s leading independent generators of electricity. Dedicated to generating clean energy, 80 % of its capacity is fueled by clean and renewable resources. The United States is the nation with the largest generator of wind energy, and it operates the two largest solar fields in the world. FPL Group, with annual revenues of more than $8 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company, serves approximately 3.9 million customer accounts in Florida. FPL Energy, LLC, and FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels.
2. Historical Overview
FPL Group is a far different company today than the one Jim Broadhead joined in January of 1989 when he became president and chief executive officer. FPL Group was then engaged in a number of businesses unrelated to its core electric skills, including insurance and financial services, real estate, cable television, and agriculture. The company's principal subsidiary, Florida Power and Light, was considered a well-managed utility with an emphasis on quality. However, the utility's spiraling costs had resulted in electric rates among the highest in the Southeast.
Today, FPL Group is nationally known as a high quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in more than a dozen States, it is widely recognized as one of the country's premier power companies. FPL's rates are among the lowest in the industry, due primarily to a decade-long emphasis on reducing costs. At the same time, the utility's performance is vastly improved with productivity and reliability at all time highs.
The transformation of FPL Group from a traditional, old-fashioned utility to a proven winner in both regulated and deregulated markets began soon after Mr. Broadhead arrived. Based on his experience in the natural resources and telephone industries - and taking into account the mood of the nation regarding competition - Mr. Broadhead thought it likely that the electric business would follow other industries previously deregulated. To ensure the company's long-term success, Mr. Broadhead asked employees to focus on four areas: cost-effective operations; a commitment to quality; strong customer orientation; and speed and flexibility.
In 1991 FPL underwent a top-to-bottom restructuring and re-staffing. The entire organization was streamlined, layers of management were reduced, and bureaucratic procedures eliminated. That same year the...