Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant On December 19, 2008, Heartland Wind, LLC (Heartland Wind), an indirect wholly-owned subsidiary of FPL Energy, LLC (FPL Energy), entered into a $322.5 million limited-recourse senior secured variable rate term loan agreement and, on December 22, 2008, borrowed $322.5 million under the agreement. FPL Energy is an indirect wholly-owned subsidiary of FPL Group, Inc. Interest on the loan is payable quarterly and the principal is partially amortizing with a balloon payment of approximately $111.4 million at maturity, which is in December 2016. Under the terms of the loan agreement, the amount of the loan available may be increased up to a maximum aggregate principal amount of $400 million, to the extent additional commitments are made available by additional lenders, on or before March 31, 2009. The proceeds of the loan will be used to reimburse, in part, capital contributions made by FPL Energy to develop and construct wind generation facilities totaling 309 megawatts and associated transmission facilities located in North Dakota and Iowa. The loan is secured by liens on those wind generation assets and associated transmission facilities, and certain other assets of, and the ownership interest in, Heartland Wind. The loan agreement contains default and related acceleration provisions relating to the failure to make required payments, certain events in bankruptcy and other covenants applicable to Heartland Wind.

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