Answer 1

I would assume that decision in payout reduction would result in

giving a better positioning to the company in the long run with
regards to the performances & growth strategy. In
The decision to reduce payout ratio can also lead to minimize the
risk exposure to the market volatility and deregulation. It can also
result in excess cash that is beneficial to the growth strategy in
terms of being able to conduct acquisitions.
It is known that the market had reacted badly to the decision that
the stock price fell to 23% this is due to the fact that the utilities
market is not normally used to dividend cuts in the event of financial
distress; noting that FPL held an inappropriate very high payout
ratio.