EX-99 2 exhibit99dated04-30x2013.htm EXHIBIT 99 Exhibit 99 Dated 04-30-2013


Exhibit 99

 
 
NextEra Energy, Inc.
Media Line: (305) 552-3888
April 30, 2013

FOR IMMEDIATE RELEASE

NextEra Energy announces first-quarter earnings for 2013
Florida Power & Light Company continued to invest in the business to provide long-term customer benefits and maintained a regulatory return on equity of 11 percent
NextEra Energy Resources' results benefitted from new project additions
Lone Star Transmission line energized on time and under budget

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2013 first-quarter net income on a GAAP basis of $272 million, or $0.64 per share, compared with $461 million, or $1.11 per share, in the first quarter of 2012. On an adjusted basis, NextEra Energy's earnings were $475 million, or $1.12 per share, compared with $422 million, or $1.02 per share, in the first quarter of 2012. Adjusted earnings exclude the mark-to-market effects of non-qualifying hedges and the net effect of other than temporary impairments (OTTI) on certain investments, and also for the current quarter, the gain on the sale of the Maine hydropower assets, a charge associated with the decision to sell merchant fossil assets in Maine, and charges associated with an impairment on the Spain solar project, all of which relate to the business of NextEra Energy Resources, LLC and its affiliated entities.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and as an input in determining whether performance goals are met for performance-based compensation under the company's employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. NextEra Energy management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. The attachments to this news release include a reconciliation of historical adjusted earnings to net income, which is the most directly comparable GAAP measure.

“NextEra Energy delivered strong results in the first quarter of 2013 as we continued to execute well on our objectives,” said NextEra Energy President and CEO Jim Robo. “At Florida Power & Light Company, earnings growth was driven by increased investments in the business that are helping to provide our customers with the lowest bills in the state and reliability that is among the best in the country. At NextEra Energy Resources, we continue to develop new projects to sustain our position as North America's largest generator of renewable energy from the wind and sun.”

Florida Power & Light Company
NextEra Energy's principal rate-regulated utility subsidiary, Florida Power & Light Company, reported first-quarter net income of $288 million, or $0.68 per share, compared with $239 million, or $0.58 per share, for the prior-year quarter.


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The main driver of FPL's growth was continued investment in the business, which strengthens a customer value proposition that includes high reliability, award-winning customer service, a clean emissions profile and the lowest typical residential customer bill in Florida. During the quarter, average regulatory capital employed grew by $3.4 billion, a 14 percent increase compared to the prior-year quarter. FPL had approximately 33,000 more customers than in the year-ago period, representing the 12th consecutive quarter of consistent customer growth. Excluding the effect of weather, underlying customer usage was roughly flat.

The business continues to execute well against its development objectives, including the completion of the nuclear power uprate of Turkey Point Unit 4, marking the fourth and final repowering of FPL's nuclear units. Coupled with the completed uprates at both St. Lucie Units 1 & 2 and Turkey Point Unit 3, these investments are now expected to provide more than 500 megawatts (MW) of emissions-free energy to customers.

FPL's Cape Canaveral Next Generation Clean Energy Center became operational on April 24. Modernization of the company's Riviera Beach Next Generation Clean Energy Center remains on track and on budget with an expected in-service date of June 2014. The demolition of FPL's Port Everglades facility is set for July and the modernized facility is expected to be in service by June 2016. Combined, the three new, more efficient power plants are expected to add approximately 3,700 MW of gas-fired generation. During their operating lifetimes, customers will save more than $1 billion combined in fuel and other costs, relative to avoided higher-cost generation or purchased power.

During the quarter, FPL completed its project to install 4.5 million smart meters across its service territory, delivering the reliability benefits of this state-of-the-art technology to customers. On March 12, Vero Beach, Fla. residents voted in favor of FPL's proposed acquisition of the Vero Beach municipal electric utility system, which, subject to applicable approvals, is expected to close in 2014. FPL is currently evaluating competing bids in response to the issuance of a request for proposals to build a third major natural gas pipeline to serve Florida's growing need for natural gas power. The business expects to name winning bidders in July with construction expected to be completed in 2017, subject to applicable approvals.

NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a first-quarter loss on a GAAP basis of $40 million, or $0.09 per share, compared with profit of $221 million, or $0.53 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings were $177 million, or $0.42 per share, compared with $182 million, or $0.44 per share, in the first quarter of 2012.

NextEra Energy Resources' adjusted earnings were driven by contributions from new wind and solar assets as well as improved contributions from the customer supply and trading business due to favorable market conditions. These gains were offset largely by lower wind generation.

Additionally, there were three items in the quarter that the business excluded from adjusted earnings. The previously announced sale of the company's Maine hydropower assets, which closed in March, resulted in a GAAP gain of roughly $216 million. Separately, as part of the company's continuing efforts to reduce market exposure to merchant pricing, the business expects to sell 796 MW of merchant fossil assets in Maine, and the business has recognized a charge of roughly $41 million. Finally, due to unexpected recent tariff revisions by the Spanish government, the business is writing down the value of its solar project in that country by $300 million and recording additional Spanish income tax valuation allowances related to the impairment of $42 million.





2




During the first quarter, NextEra Energy Resources signed long-term power purchase agreements for 225 MW of new U.S. wind projects and 40 MW of solar projects. The business remains on track to add approximately 500 to 1,500 MW of new U.S. wind assets to the portfolio through 2014, and approximately 300 MW of new contracted solar generation to the portfolio through 2016.

Corporate and Other
Corporate and Other's contribution to adjusted earnings was 2 cents as the Lone Star transmission line in Texas entered service on time and under budget in the first quarter. On a GAAP basis, Corporate and Other's contribution to earnings per share was 5 cents.

Outlook
NextEra Energy continues to expect it will deliver adjusted earnings per share for 2013 in the range of $4.70 to $5.00. Additionally, the company currently expects a compounded annual growth rate for full-year adjusted earnings per share of 5 percent to 7 percent through 2016, from a 2012 base.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other than temporary impairment losses on securities held in NextEra Energy Resources' nuclear decommissioning funds, none of which can be determined at this time. For 2013, adjusted earnings also exclude the gain on the sale of the Maine hydropower assets, a charge associated with the decision to sell merchant fossil assets in Maine, and charges associated with an impairment on the Spain solar project. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; no further significant decline in the national or the Florida economy; supportive commodity markets; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; access to capital at reasonable cost and terms; no acquisitions or divestitures; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

 
As previously announced, NextEra Energy's first-quarter earnings conference call is scheduled for 9 a.m. ET on April 30, 2013. The webcast is available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/investors. The slides and earnings release accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors beginning at 7:30 a.m. ET today. For those unable to listen to the live webcast, a replay will be available for 90 days by accessing the same link as listed above.

 
 
 
 

This news release should be read in conjunction with the attached unaudited financial information.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $14.3 billion, more than 42,000 megawatts of generating capacity, and nearly 15,000 employees in 26 states and Canada as of year-end 2012. Headquartered in Juno Beach, Fla., NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.6 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.





3





###

Cautionary Statements and Risk Factors That May Affect Future Results


This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “will result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “aim,” “potential,” “projection,” “forecast,” “predict,” “goals,” “target,” “outlook,” “should,” “would” or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or an appropriate return on capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory and economic factors on regulatory decisions important to NextEra Energy and FPL; risks of disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions to or elimination of governmental incentives that support renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources); impact of new or revised laws, regulations or interpretations or other regulatory initiatives on NextEra Energy and FPL; effect on NextEra Energy and FPL of potential regulatory action to broaden the scope of regulation of over-the-counter (OTC) financial derivatives and to apply such regulation to NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations; effect on NextEra Energy and FPL of changes in tax laws and in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; risks associated with threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; risk of lack of availability of adequate insurance coverage for protection of NextEra Energy and FPL against significant losses; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's hedging and trading procedures and associated risk management tools to protect against significant losses; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; risks to NextEra Energy and FPL of failure of counterparties to perform under derivative contracts or of requirement for NextEra Energy and FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's and FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; increasing costs of health care plans; lack of a qualified workforce or the loss or retirement of key employees; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions; environmental, health and financial risks associated with NextEra Energy's and FPL's ownership of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units

4



through the end of their respective operating licenses; liability of NextEra Energy and FPL for increased nuclear licensing or compliance costs resulting from hazards posed to their owned nuclear generation facilities; risks associated with outages of NextEra Energy's and FPL's owned nuclear units; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; risk of impairment of NextEra Energy's and FPL's liquidity from inability of creditors to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; and effect of disruptions, uncertainty or volatility in the credit and capital markets of the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2012 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.


5



NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2013
Florida Power
& Light
NEER
Corporate &
Other
NextEra Energy,
 Inc.
Operating Revenues
$
2,188

$
1,016

$
75

$
3,279

Operating Expenses
 
 
 
 
 
Fuel, purchased power and interchange
820

230

15

1,065

 
Other operations and maintenance
385

351

20

756

 
Impairment charge

300


300

 
Depreciation and amortization
181

226

12

419

 
Taxes other than income taxes and other
259

42

4

305

 
 
Total operating expenses
1,645

1,149

51

2,845

Operating Income (Loss)
543

(133
)
24

434

Other Income (Deductions)
 
 
 
 
 
Interest expense
(102
)
(124
)
(46
)
(272
)
 
Benefits associated with differential membership interests - net

40


40

 
Allowance for equity funds used during construction
18


8

26

 
Interest income
1

4

14

19

 
Gains on disposal of assets - net

12


12

 
Other than temporary impairment losses on securities held in
  nuclear decommissioning funds

(3
)

(3
)
 
Other - net

5

(9
)
(4
)
 
 
Total other income (deductions) - net
(83
)
(66
)
(33
)
(182
)
 
 
 
 
 
 

 
Income (Loss) from Continuing Operations before Income Taxes
460

(199
)
(9
)
252

Income Tax Expense (Benefit)
172

16

(20
)
168

Income (Loss) from Continuing Operations
288

(215
)
11

84

Net gain from Discontinued Operations, net of Income Taxes

175

13

188

Net Income (Loss)
$
288

$
(40
)
$
24

$
272

Reconciliation of Net Income (Loss) to Adjusted Earnings:
 
 
 
 
Net Income (Loss)
$
288

$
(40
)
$
24

$
272

Adjustments, net of income taxes:
 
 
 
 
 
Net unrealized mark-to-market (gains) losses associated with
  non-qualifying hedges

53

(1
)
52

 
(Income) loss from other than temporary impairments - net

(3
)

(3
)
 
Net gain from discontinued operations

(175
)
(13
)
(188
)
 
Impairment charge and valuation allowance

342


342

Adjusted Earnings
$
288

$
177

$
10

$
475

 
 
 
 
 
 
 
Earnings Per Share (assuming dilution)
$
0.68

$
(0.09
)
$
0.05

$
0.64

Adjustments:
 
 
 
 
 
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges

0.12


0.12

 
(Income) loss from other than temporary impairments - net

(0.01
)

(0.01
)
 
Net gain from discontinued operations

(0.41
)
(0.03
)
(0.44
)
 
Impairment charge and valuation allowance

0.81


0.81

Adjusted Earnings (Loss) Per Share
$
0.68

$
0.42

$
0.02

$
1.12

Weighted-average shares outstanding (assuming dilution)
 
 
 
424


In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.

For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.

6



NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2012
Florida Power
& Light
NEER
Corporate &
Other
NextEra Energy,
 Inc.
Operating Revenues
$
2,224

$
1,090

$
57

$
3,371

Operating Expenses
 
 
 
 
 
Fuel, purchased power and interchange
935

230

17

1,182

 
Other operations and maintenance
436

320

19

775

 
Impairment charges




 
Depreciation and amortization
118

192

10

320

 
Taxes other than income taxes and other
254

37


291

 
 
Total operating expenses
1,743

779

46

2,568

Operating Income (Loss)
481

311

11

803

Other Income (Deductions)
 
 
 
 
 
Interest expense
(104
)
(127
)
(34
)
(265
)
 
Benefits associated with differential membership interests - net

41


41

 
Allowance for equity funds used during construction
10


3

13

 
Interest income
1

6

13

20

 
Gains on disposal of assets - net

11


11

 
Other than temporary impairment losses on securities held in
  nuclear decommissioning funds

(1
)

(1
)
 
Other - net
(1
)
1

(4
)
(4
)
 
 
Total other income (deductions) - net
(94
)
(69
)
(22
)
(185
)
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations before Income Taxes
387

242

(11
)
618

Income Tax Expense (Benefit)
148

21

(12
)
157

Income (Loss) from Continuing Operations
239

221

1

461

Net gain from Discontinued Operations, net of Income Taxes




Net Income (Loss)
$
239

$
221

$
1

$
461

Reconciliation of Net Income (Loss) to Adjusted Earnings:
 
 
 
 
Net Income (Loss)
$
239

$
221

$
1

$
461

Adjustments, net of income taxes:
 
 
 
 
 
Net unrealized mark-to-market (gains) losses associated with
  non-qualifying hedges

(37
)

(37
)
 
(Income) loss from other than temporary impairments - net

(2
)

(2
)
 
Net gain from discontinued operations




 
Impairment charge and valuation allowance




Adjusted Earnings
$
239

$
182

$
1

$
422

Earnings Per Share (assuming dilution)
$
0.58

$
0.53


$
1.11

Adjustments:
 
 
 
 
 
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges

(0.09
)

(0.09
)
 
(Income) loss from other than temporary impairments - net




 
Net gain from discontinued operations




 
Impairment charge and valuation allowance




Adjusted Earnings (Loss) Per Share
$
0.58

$
0.44


$
1.02

Weighted-average shares outstanding (assuming dilution)
 
 
 
415


In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.

For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.


7




NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
Preliminary
 
March 31, 2013
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
    Electric plant in service and other property
$
34,371

$
21,979

$
1,375

$
57,725

    Nuclear fuel
1,138

722


1,860

    Construction work in progress
2,920

2,960

25

5,905

    Less accumulated depreciation and amortization
(10,598
)
(4,784
)
(284
)
(15,666
)
 
Total property, plant and equipment - net
27,831

20,877

1,116

49,824

 
 
 
 
 
 
Current Assets
 
 
 
 
    Cash and cash equivalents
35

152

28

215

    Customer receivables, net of allowances
646

679

41

1,366

    Other receivables
529

255

(391
)
393

    Materials, supplies and fossil fuel inventory
729

365

4

1,098

    Regulatory assets:
 
 
 
 
        Deferred clause and franchise expenses
104



104

        Other
98


8

106

    Derivatives
136

320

30

486

    Deferred income taxes
38

11

(39
)
10

    Assets held for sale




    Other
114

135

18

267

 
Total current assets
2,429

1,917

(301
)
4,045

 
 
 
 
 
 
Other Assets
 
 
 
 
    Special use funds
3,064

1,349


4,413

    Other investments
4

285

692

981

    Prepaid benefit costs
1,145


(96
)
1,049

    Regulatory assets:
 
 
 
 
        Securitized storm-recovery costs
447



447

        Other
385


243

628

    Derivatives
9

857

36

902

    Other
140

1,109

305

1,554

 
Total other assets
5,194

3,600

1,180

9,974

 
 
 
 
 
 
Total Assets
$
35,454

$
26,394

$
1,995

$
63,843



8




NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
Preliminary
 
March 31, 2013
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Capitalization
 
 
 
 
    Common stock
$
1,373

$

$
(1,369
)
$
4

    Additional paid-in capital
5,903

8,672

(9,018
)
5,557

    Retained earnings
5,202

5,433

142

10,777

    Accumulated other comprehensive income (loss)

(48
)
(88
)
(136
)
 
 
 
 
 
 
 
Total common shareholders' equity
12,478

14,057

(10,333
)
16,202

    Long-term debt
8,301

4,707

9,858

22,866

 
 
 
 
 
 
 
Total capitalization
20,779

18,764

(475
)
39,068

 
 
 
 
 
 
Current Liabilities
 
 
 
 
    Commercial paper
405


1,096

1,501

    Short-term debt
500


375

875

    Current maturities of long-term debt
54

1,550

1,078

2,682

    Accounts payable
618

465

11

1,094

    Customer deposits
501

4

1

506

    Accrued interest and taxes
295

580

(396
)
479

    Derivatives
1

383

35

419

    Accrued construction-related expenditures
176

189

6

371

    Liabilities associated with assets held for sale




    Other
451

301

97

849

 
 
 
 
 
 
 
Total current liabilities
3,001

3,472

2,303

8,776

 
 
 
 
 
 
Other Liabilities and Deferred Credits
 
 
 
 
    Asset retirement obligations
1,222

517


1,739

    Deferred income taxes
5,895

1,010

(245
)
6,660

    Regulatory liabilities:
 
 
 
 
         Accrued asset removal costs
1,809



1,809

         Asset retirement obligation regulatory expense difference
1,927



1,927

         Other
362


1

363

    Derivatives

296

95

391

    Deferral related to differential membership interests

1,739


1,739

    Other
459

596

316

1,371

 
 
 
 
 
 
Total other liabilities and deferred credits
11,674

4,158

167

15,999

 
 
 
 
 
 
Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
$
35,454

$
26,394

$
1,995

$
63,843

 
 
 
 
 
 

NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.


9



NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
Preliminary
 
December 31, 2012
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
    Electric plant in service and other property
$
34,474

$
21,877

$
703

$
57,054

    Nuclear fuel
1,190

705


1,895

    Construction work in progress
2,585

2,751

632

5,968

    Less accumulated depreciation and amortization
(10,698
)
(4,535
)
(271
)
(15,504
)
 
 
 
 
 
 
 
Total property, plant and equipment - net
27,551

20,798

1,064

49,413

 
 
 
 
 
 
Current Assets
 
 
 
 
    Cash and cash equivalents
40

257

32

329

    Customer receivables, net of allowances
760

690

37

1,487

    Other receivables
447

420

(298
)
569

    Materials, supplies and fossil fuel inventory
727

342

4

1,073

    Regulatory assets:
 
 
 
 
         Deferred clause and franchise expenses
75



75

         Other
106


7

113

    Derivatives
5

483

29

517

    Deferred income taxes

10

387

397

    Assets held for sale

335


335

    Other
126

197

19

342

 
 
 
 
 
 
 
Total current assets
2,286

2,734

217

5,237

 
 
 
 
 
 
Other Assets
 
 
 
 
    Special use funds
2,918

1,272


4,190

    Other investments
4

269

703

976

    Prepaid benefit costs
1,135


(104
)
1,031

    Regulatory assets:
 
 
 
 
    Securitized storm-recovery costs
461



461

    Other
351


231

582

    Derivatives
1

873

46

920

    Other
146

1,193

290

1,629

 
 
 
 
 
 
 
Total other assets
5,016

3,607

1,166

9,789

 
 
 
 
 
 
Total Assets
$
34,853

$
27,139

$
2,447

$
64,439


10



NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
Preliminary
 
December 31, 2012
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Capitalization
 
 
 
 
    Common stock
$
1,373

$

$
(1,369
)
$
4

    Additional paid-in capital
5,903

8,324

(8,691
)
5,536

    Retained earnings
5,254

5,473

56

10,783

    Accumulated other comprehensive income (loss)

(149
)
(106
)
(255
)
 
 
 
 
 
 
 
Total common shareholders' equity
12,530

13,648

(10,110
)
16,068

    Long-term debt
8,329

5,606

9,242

23,177

 
 
 
 
 
 
 
Total capitalization
20,859

19,254

(868
)
39,245

 
 
 
 
 
 
Current Liabilities
 
 
 
 
    Commercial paper
105


1,106

1,211

    Short-term debt


200

200

    Current maturities of long-term debt
453

744

1,574

2,771

    Accounts payable
612

658

11

1,281

    Customer deposits
503

4

1

508

    Accrued interest and taxes
223

474

(283
)
414

    Derivatives
20

367

43

430

    Accrued construction-related expenditures
235

187

5

427

    Liabilities associated with assets held for sale

733


733

    Other
475

404

25

904

 
 
 
 
 
 
 
Total current liabilities
2,626

3,571

2,682

8,879

 
 
 
 
 
 
Other Liabilities and Deferred Credits
 
 
 
 
    Asset retirement obligations
1,206

508

1

1,715

    Deferred income taxes
5,584

886

233

6,703

    Regulatory liabilities:
 
 
 
 
         Accrued asset removal costs
1,950



1,950

         Asset retirement obligation regulatory expense difference
1,813



1,813

         Other
309



309

    Derivatives

529

58

587

    Deferral related to differential membership interests

1,784


1,784

    Other
506

607

341

1,454

 
 
 
 
 
 
 
Total other liabilities and deferred credits
11,368

4,314

633

16,315

 
 
 
 
 
 
Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
$
34,853

$
27,139

$
2,447

$
64,439


NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.




11



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2013
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
Net income (loss)
$
288

$
(40
)
$
24

$
272

Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
 
 
 
 
Depreciation and amortization
181

226

12

419

Nuclear fuel and other amortization
34

40

7

81

Impairment charge

300


300

Unrealized (gains) losses on marked to market energy contracts

43

(1
)
42

Deferred income taxes
238

104

21

363

Cost recovery clauses and franchise fees
(19
)


(19
)
Changes in prepaid option premiums and derivative settlements

13


13

Benefits associated with differential membership interests - net

(40
)

(40
)
Allowance for equity funds used during construction
(18
)

(8
)
(26
)
Net gain from discontinued operations, net of income taxes

(175
)
(13
)
(188
)
Other - net
42

(6
)
49

85

Changes in operating assets and liabilities:
 
 
 
 
 
  Customer and other receivables
106

30


136

 
  Materials, supplies and fossil fuel inventory
(2
)
(23
)

(25
)
 
  Other current assets
(17
)
4

3

(10
)
 
  Other assets
(10
)
(4
)
(11
)
(25
)
 
  Accounts payable
74

(30
)
(2
)
42

 
  Margin cash collateral

(2
)

(2
)
 
  Income taxes
(66
)
(89
)
(50
)
(205
)
 
  Interest and other taxes
81

(15
)
8

74

 
  Other current liabilities
(127
)
(67
)
(25
)
(219
)
 
  Other liabilities
(9
)
19

4

14

Net cash provided by (used in) operating activities
776

288

18

1,082


12



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2013
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Cash Flows From Investing Activities
 
 
 
 
Capital expenditures of FPL
(810
)


(810
)
Independent power and other investments of NextEra Energy Resources

(972
)

(972
)
Cash grants under the American Recovery and Reinvestment Act of 2009

170


170

Nuclear fuel purchases
(11
)
(13
)

(24
)
Other capital expenditures


(61
)
(61
)
Change in loan proceeds restricted for construction

112


112

Proceeds from sale or maturity of securities in special use funds
685

239


924

Purchases of securities in special use funds
(701
)
(245
)

(946
)
Proceeds from sale or maturity of other securities


81

81

Purchases of other securities


(68
)
(68
)
Other - net
(1
)
17


16

Net cash provided by (used in) investing activities
(838
)
(692
)
(48
)
(1,578
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
Issuances of long-term debt

96

527

623

Retirements of long-term debt
(427
)
(146
)
(350
)
(923
)
Proceeds from sale of differential membership interests




Payments to differential membership investors

(20
)

(20
)
Net change in short-term debt
800


166

966

Issuances of common stock - net


8

8

Repurchases of common stock




Dividends on common stock


(279
)
(279
)
Dividends & capital distributions from (to) NextEra Energy, Inc. - net
(340
)
349

(9
)

Other - net
24

20

(37
)
7

Net cash provided by (used in) financing activities
57

299

26

382

 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(5
)
(105
)
(4
)
(114
)
Cash and cash equivalents at beginning of period
40

257

32

329

 
 
 
 
 
Cash and cash equivalents at end of period
$
35

$
152

$
28

$
215


NEER's financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.


13



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2012
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
Net income (loss)
$
239

$
221

$
1

$
461

Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
 
 
 
 
Depreciation and amortization
118

192

10

320

Nuclear fuel and other amortization
27

42

7

76

Impairment charge




Unrealized (gains) losses on marked to market energy contracts

(132
)

(132
)
Deferred income taxes
265

(64
)
(67
)
134

Cost recovery clauses and franchise fees
48



48

Changes in prepaid option premiums and derivative settlements

(1
)

(1
)
Benefits associated with differential membership interests - net

(41
)

(41
)
Allowance for equity funds used during construction
(10
)

(3
)
(13
)
Net gain from discontinued operations, net of income taxes




Other - net
6

52

(14
)
44

Changes in operating assets and liabilities:
 
 
 
 
 
  Customer and other receivables
53

25

(19
)
59

 
  Materials, supplies and fossil fuel inventory
(22
)
4


(18
)
 
  Other current assets
(21
)
3

(6
)
(24
)
 
  Other assets
(11
)
20

31

40

 
  Accounts payable
6

(81
)

(75
)
 
  Margin cash collateral

75


75

 
  Income taxes
(117
)
85

40

8

 
  Interest and other taxes
77

(18
)
7

66

 
  Other current liabilities
(107
)
(80
)
19

(168
)
 
  Other liabilities
7

(33
)
2

(24
)
Net cash provided by (used in) operating activities
558

269

8

835



14



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
Preliminary
 
Three Months Ended March 31, 2012
Florida Power
& Light
NEER
Corporate &
Other
NextEra
Energy, Inc.
Cash Flows From Investing Activities
 
 
 
 
Capital expenditures of FPL
(1,084
)


(1,084
)
Independent power and other investments of NextEra Energy Resources

(740
)

(740
)
Cash grants under the American Recovery and Reinvestment Act of 2009




Nuclear fuel purchases
(28
)
(16
)

(44
)
Other capital expenditures


(146
)
(146
)
Change in loan proceeds restricted for construction

45


45

Proceeds from sale or maturity of securities in special use funds
727

209


936

Purchases of securities in special use funds
(758
)
(215
)

(973
)
Proceeds from sale or maturity of other securities


99

99

Purchases of other securities


(95
)
(95
)
Other - net
26

(18
)
(1
)
7

Net cash provided by (used in) investing activities
(1,117
)
(735
)
(143
)
(1,995
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
Issuances of long-term debt

118

448

566

Retirements of long-term debt
(25
)
(109
)

(134
)
Proceeds from sale of differential membership interests

303


303

Payments to differential membership investors




Net change in short-term debt
507

193

(118
)
582

Issuances of common stock - net


12

12

Repurchases of common stock


(19
)
(19
)
Dividends on common stock


(248
)
(248
)
Dividends & capital distributions from (to) NextEra Energy, Inc. - net
40

(59
)
19


Other - net
17

(14
)
(7
)
(4
)
Net cash provided by (used in) financing activities
539

432

87

1,058

 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(20
)
(34
)
(48
)
(102
)
Cash and cash equivalents at beginning of period
36

166

175

377

 
 
 
 
 
 
Cash and cash equivalents at end of period
$
16

$
132

$
127

$
275


NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.



15





NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
 
Preliminary

 
First
Quarter
NextEra Energy, Inc. - 2012 Earnings Per Share
$
1.11

 
 
Florida Power & Light - 2012 Earnings Per Share
$
0.58

Allowance for funds used during construction
0.03

Cost recovery clause results, primarily nuclear uprates in base rates
(0.01
)
New investment and other
0.09

Share dilution
(0.01
)
 
 
Florida Power & Light - 2013 Earnings Per Share
0.68

 
 
NEER - 2012 Earnings Per Share
0.53

New investments
0.03

Existing assets
(0.05
)
Gas infrastructure
(0.03
)
Customer supply businesses & proprietary power & gas trading
0.04

Non-qualifying hedges impact
(0.21
)
Net gain from discontinued operations
0.41

Impairment charge and valuation allowance
(0.81
)
Change in other than temporary impairment losses - net
0.01

Other, including interest expense

Share dilution
(0.01
)
NEER - 2013 Earnings Per Share
(0.09
)
 
 
Corporate and Other - 2012 Earnings Per Share

Lone Star Transmission
0.02

Non-qualifying hedges impact

Net gain from discontinued operations
0.03

Other, including interest expense, interest income and consolidating income tax
benefits or expenses

Share dilution

 
 

Corporate and Other - 2013 Earnings Per Share
0.05

 
 
NextEra Energy, Inc. - 2013 Earnings Per Share
$
0.64


NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate & Other.

Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.


16



NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)
 
 
Preliminary
 
March 31, 2013
Per Books
Adjusted 1
Long-term debt, including current maturities,
 
 
  short-term debt and commercial paper
 
 
    Junior Subordinated Debentures
$
3,353

$
1,677

    Debentures, related to NextEra Energy's equity units
1,653

 
    Project debt:
 
 
 
Natural gas-fired assets
547

 
 
Wind assets
3,543

886

 
Solar
823

 
    Storm Securitization Debt
410

 
    Pipeline Funding
500

 
    Waste Water Bonds
56

 
Other2
 
1,457

Other long-term debt, including current maturities, short-term debt and commercial paper3
17,039

17,039

Total debt per Balance Sheet
27,924

21,059

Junior Subordinated Debentures
 
1,676

Debentures, related to NextEra Energy's equity units
 
1,653

Common shareholders' equity
16,202

16,202

Total capitalization, including debt due within one year
$
44,126

$
40,590

 
 
 
 
Debt ratio
63
%
52
%

December 31, 2012
Per Books
 
Long-term debt, including current maturities and
 
 
  commercial paper
 
 
    Junior Subordinated Debentures
$
3,253

$
1,627

    Debentures, related to NextEra Energy's equity units
1,653

 
    Project debt:
 
 
          Natural gas-fired assets
560

 
 
Wind assets
3,634

909

 
Solar
173

 
    Storm Securitization Debt
438

 
    Pipeline Funding
500

 
    Waste Water Bonds
56

 
Other2
 
1,531

Other long-term debt, including current maturities, short-term debt and commercial paper3
17,092

17,092

Total debt
27,359

21,159

Junior Subordinated Debentures
 
1,626

Debentures, related to NextEra Energy's equity units
 
1,653

Common shareholders' equity
16,068

16,068

Total capitalization, including debt due within one year
$
43,427

$
40,506

 
 
 
Debt ratio
63
%
52
%

1 Adjusted debt calculation is based on NextEra's interpretation of S&P's credit metric methodology which can be found in their Corporate
  Ratings Criteria on S&P's website. The December 31, 2012 ratio has been restated to this methodology.
2 Other includes imputed debt of purchase power agreements, a portion of the deferral related to differential membership interests and certain
  accrued interest.
3 Includes premium and discount on all debt issuances.



17



Florida Power & Light Company
Statistics
(unaudited)
 
 
 
Preliminary

 
 
 Quarter
 
 
 
 
Periods Ended March 31
2013
2012
Energy sales (million kwh)
 
 
Residential
10,842

11,093

Commercial
10,075

10,305

Industrial
717

737

Public authorities
137

136

Increase (decrease) in unbilled sales
(115
)
178

Total retail
21,656

22,449

Electric utilities
501

500

Interchange power sales
888

154

Total
23,045

23,103


Average price (cents/kwh) (1)
 
 
Residential
10.39

10.40

Commercial
8.75

8.83

Industrial
6.68

6.97

Total
9.46

9.51


Average customer accounts (000's)
 
 
Residential
4,073

4,044

Commercial
514

510

Industrial
9

9

Other
4

4

 
 
 
 
Total
4,600

4,567


End of period customer accounts (000's)
 MAR 2013

 MAR 2012

Residential
4,079

4,051

Commercial
514

511

Industrial
9

9

Other
4

3

Total
4,606

4,574


1. Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund.
 
 
2013

 Normal

2012

 
 
 
 
 
Three Months Ended March 31
 
 
 
 
Cooling degree-days
124

125

166

 
Heating degree-days
217

248

153


Cooling degree days for the periods above use a 72 degree base temperature and heating degree days use a 66 degree base temperature.



18