|
|
Commission
File
Number
|
Exact name of registrants as specified in their
charters, address of principal executive offices and
registrants' telephone number
|
IRS Employer
Identification
Number
|
||
1-8841
|
NEXTERA ENERGY, INC.
|
59-2449419
|
||
2-27612
|
FLORIDA POWER & LIGHT COMPANY
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000
|
59-0247775
|
Name of exchange
on which registered
|
||
Securities registered pursuant to Section 12(b) of the Act:
|
||
NextEra Energy, Inc.:
|
Common Stock, $0.01 Par Value
|
New York Stock Exchange
|
Florida Power & Light Company:
None
|
NextEra Energy, Inc. Yes
þ
No
¨
Florida Power & Light Company Yes
þ
No
¨
|
NextEra Energy, Inc. Yes
¨
No
þ
Florida Power & Light Company Yes
¨
No
þ
|
NextEra Energy, Inc. Yes
þ
No
¨
Florida Power & Light Company Yes
þ
No
¨
|
NextEra Energy, Inc. Yes
þ
No
¨
Florida Power & Light Company Yes
¨
No
¨
|
NextEra Energy, Inc.
|
Large Accelerated Filer
þ
|
Accelerated Filer
¨
|
Non-Accelerated Filer
¨
|
Smaller Reporting Company
¨
|
Florida Power & Light Company
|
Large Accelerated Filer
¨
|
Accelerated Filer
¨
|
Non-Accelerated Filer
þ
|
Smaller Reporting Company
¨
|
Term
|
Meaning
|
|
AESO
|
Alberta Electric System Operator
|
|
AFUDC
|
allowance for funds used during construction
|
|
AFUDC - debt
|
debt component of allowance for funds used during construction
|
|
AFUDC - equity
|
equity component of allowance for funds used during construction
|
|
BART
|
Best Available Retrofit Technology
|
|
CAISO
|
California Independent System Operator
|
|
capacity clause
|
capacity cost recovery clause, as established by the FPSC
|
|
Capital Holdings
|
NextEra Energy Capital Holdings, Inc., formerly known as FPL Group Capital Inc
|
|
charter
|
restated articles of incorporation, as amended, of NextEra Energy or FPL, as the case may be
|
|
conservation clause
|
energy conservation cost recovery clause, as established by the FPSC
|
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
|
DOE
|
U.S. Department of Energy
|
|
Duane Arnold
|
Duane Arnold Energy Center
|
|
environmental clause
|
environmental compliance cost recovery clause, as established by the FPSC
|
|
EPA
|
U.S. Environmental Protection Agency
|
|
ERCOT
|
Electric Reliability Council of Texas
|
|
FDEP
|
Florida Department of Environmental Protection
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FPL
|
Florida Power & Light Company
|
|
FPL FiberNet
|
FPL FiberNet, LLC
|
|
FPSC
|
Florida Public Service Commission
|
|
fuel clause
|
fuel and purchased power cost recovery clause, as established by the FPSC
|
|
GHG
|
greenhouse gas(es)
|
|
IESO
|
Independent Electricity System Operator
|
|
ISONE
|
ISO New England
|
|
ITCs
|
investment tax credits
|
|
kv
|
kilovolt(s)
|
|
kw
|
kilowatt
|
|
kwh
|
kilowatt-hour(s)
|
|
Lone Star
|
Lone Star Transmission, LLC
|
|
Management's Discussion
|
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
MISO
|
Midwest Independent Transmission System Operator, Inc.
|
|
mortgage
|
mortgage and deed of trust dated as of January 1, 1944, from FPL to Deutsche Bank Trust Company Americas, as supplemented and amended
|
|
mw
|
megawatt(s)
|
|
NEPOOL
|
New England Power Pool
|
|
NERC
|
North American Electric Reliability Corporation
|
|
NextEra Energy
|
NextEra Energy, Inc., formerly known as FPL Group, Inc.
|
|
NextEra Energy Resources
|
NextEra Energy Resources, LLC
|
|
Note ___
|
note ___ to consolidated financial statements
|
|
NRC
|
U.S. Nuclear Regulatory Commission
|
|
NYISO
|
New York Independent System Operator
|
|
O&M expenses
|
other operations and maintenance expenses in the consolidated statements of income
|
|
PJM
|
PJM Interconnection, L.L.C.
|
|
PMI
|
NextEra Energy Power Marketing, LLC
|
|
Point Beach
|
Point Beach Nuclear Power Plant
|
|
PTCs
|
production tax credits
|
|
PURPA
|
Public Utility Regulatory Policies Act of 1978, as amended
|
|
PV
|
photovoltaic
|
|
qualifying facilities
|
non-utility power production facilities meeting the requirements of a qualifying facility under the PURPA
|
|
Recovery Act
|
American Recovery and Reinvestment Act of 2009, as amended
|
|
regulatory ROE
|
return on common equity as determined for regulatory purposes
|
|
ROE
|
return on common equity
|
|
RPS
|
renewable portfolio standards
|
|
Seabrook
|
Seabrook Station
|
|
SEC
|
U.S. Securities and Exchange Commission
|
|
SEGS
|
Solar Electric Generating System
|
|
SPP
|
Southwest Power Pool
|
|
WCEC
|
FPL's West County Energy Center in western Palm Beach County, Florida
|
Page No.
|
||
Definitions
|
2
|
|
Forward-Looking Statements
|
3
|
|
PART I
|
||
Item 1.
|
Business
|
4
|
Item 1A.
|
Risk Factors
|
19
|
Item 1B.
|
Unresolved Staff Comments
|
28
|
Item 2.
|
Properties
|
29
|
Item 3.
|
Legal Proceedings
|
32
|
PART II
|
||
Item 5.
|
Market for Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
32
|
Item 6.
|
Selected Financial Data
|
33
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
34
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
57
|
Item 8.
|
Financial Statements and Supplementary Data
|
58
|
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
111
|
Item 9A.
|
Controls and Procedures
|
111
|
Item 9B.
|
Other Information
|
111
|
PART III
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
112
|
Item 11.
|
Executive Compensation
|
112
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
112
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
112
|
Item 14.
|
Principal Accounting Fees and Services
|
112
|
PART IV
|
||
Item 15.
|
Exhibits, Financial Statement Schedules
|
113
|
Signatures
|
121
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
Residential
|
54 | % | 56 | % | 53 | % | ||||||
Commercial
|
37 | 41 | 40 | |||||||||
Industrial
|
2 | 3 | 3 | |||||||||
Wholesale
|
1 | 1 | 1 | |||||||||
Other, including deferred or recovered retail clause revenues, the net change in retail unbilled revenues, pole attachment rentals, transmission sales and customer-related fees
|
6 | (1 | ) | 3 | ||||||||
100 | % | 100 | % | 100 | % |
·
|
Subject to the provisions of the 2010 rate agreement, retail base rates will be effectively frozen through the end of 2012.
|
·
|
Incremental cost recovery through FPL’s capacity clause for the new combined-cycle natural gas unit at WCEC (WCEC Unit No. 3), which is expected to be placed in service by mid-2011, will be permitted up to the amount of the projected fuel savings for customers during the term of the 2010 rate agreement. See Fossil Operations below.
|
·
|
Future storm restoration costs would be recoverable on an accelerated basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $4 for every 1,000 kwh of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge for the amount above $800 million.
|
·
|
If FPL's earned regulatory ROE falls below 9%, FPL may seek retail base rate relief. If FPL's earned regulatory ROE rises above 11%, any party to the 2010 rate agreement may seek a reduction in FPL’s retail base rates. In determining the regulatory ROE for all purposes under the 2010 rate agreement, earnings will be calculated on an actual, non-weather-adjusted basis.
|
·
|
FPL can vary the amount of surplus depreciation credit taken in any calendar year up to a cap in 2010 of $267 million, a cap in subsequent years of $267 million plus the amount of any unused portion from prior years, and a cap of $776 million (surplus depreciation credit cap) over the course of the 2010 rate agreement, provided that in any year of the 2010 rate agreement, including 2010, FPL must use at least enough surplus depreciation credit to maintain a 9% earned regulatory ROE but may not use any amount of surplus depreciation credit that would result in an earned regulatory ROE in excess of 11%.
|
Fuel Source
|
Percentage of
kwh Produced
|
||
Natural gas
|
58
|
%
|
|
Nuclear
|
20
|
%
|
|
Purchased power
|
13
|
%
|
|
Coal
|
5
|
%
|
|
Oil
|
4
|
%
|
|
Solar
|
<1
|
%
|
Facility
|
Net
Capability
(mw)
|
Operating License
Expiration Dates
|
Next Scheduled
Refueling Outage
|
|||
St. Lucie Unit No. 1
|
839
|
2036
|
August 2011
|
|||
St. Lucie Unit No. 2
|
714
|
2043
|
April 2012
|
|||
Turkey Point Unit No. 3
|
693
|
2032
|
January 2012
|
|||
Turkey Point Unit No. 4
|
693
|
2033
|
March 2011
|
Actual
|
Planned
|
|||||||||||||||||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
Total
|
||||||||||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||||||||
Generation:
(a)
|
||||||||||||||||||||||||||||||||||||
New
(b)(c)
|
$ | 880 | $ | 1,203 | $ | 1,148 | $ | 1,520 | $ | 1,870 | $ | 500 | $ | 105 | $ | - | $ | 3,995 | ||||||||||||||||||
Existing
|
601 | 651 | 588 | 655 | 570 | 610 | 665 | 490 | 2,990 | |||||||||||||||||||||||||||
Transmission and distribution
|
744 | 633 | 606 | 720 | 870 | 820 | 760 | 840 | 4,010 | |||||||||||||||||||||||||||
Nuclear fuel
|
130 | 178 | 98 | 260 | 170 | 255 | 205 | 220 | 1,110 | |||||||||||||||||||||||||||
General and other
|
94 | 102 | 101 | 120 | 145 | 95 | 120 | 105 | 585 | |||||||||||||||||||||||||||
Total
|
$ | 2,449 | $ | 2,767 | $ | 2,541 | $ | 3,275 | $ | 3,625 | $ | 2,280 | $ | 1,855 | $ | 1,655 | $ | 12,690 |
(a)
|
Includes AFUDC of approximately $49 million, $76 million, $79 million, $29 million and $3 million in 2011 to 2015, respectively.
|
(b)
|
Includes land, generating structures, transmission interconnection and integration and licensing.
|
(c)
|
Includes projects that have received FPSC approval. Includes pre-construction costs and carrying charges (equal to a pretax AFUDC rate) on construction costs recoverable through the capacity clause of approximately $98 million, $75 million and $24 million in 2011 to 2013, respectively. Excludes capital expenditures for the construction costs for the two additional nuclear units at FPL's Turkey Point site beyond what is required to receive an NRC license for each unit.
|
Geographic Region
|
Percentage of Generation Capacity
|
||
ERCOT
|
28
|
%
|
|
Northeast
|
27
|
%
|
|
Midwest
|
22
|
%
|
|
West
|
15
|
%
|
|
Other South
|
8
|
%
|
Fuel Source
|
Percentage of Generation Capacity
|
||
Wind
|
44
|
%
|
|
Natural Gas
|
35
|
%
|
|
Nuclear
|
14
|
%
|
|
Oil
|
4
|
%
|
|
Hydro
|
2
|
%
|
|
Solar and other
|
1
|
%
|
Actual
|
Planned
|
|||||||||||||||||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
Total
|
||||||||||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||||||||
Wind
(a)
|
$ | 2,255 | $ | 2,625 | $ | 1,950 | $ | 505 | $ | 30 | $ | 10 | $ | 5 | $ | - | $ | 550 | ||||||||||||||||||
Solar
(b)
|
20 | 40 | 185 | 955 | 885 | 420 | 75 | - | 2,335 | |||||||||||||||||||||||||||
Nuclear
(c)
|
335 | 455 | 510 | 585 | 275 | 250 | 250 | 265 | 1,625 | |||||||||||||||||||||||||||
Natural gas
|
115 | 120 | 140 | 140 | 35 | 65 | 40 | 120 | 400 | |||||||||||||||||||||||||||
Other
(d)
|
80 | 110 | 285 | 85 | 75 | 50 | 60 | 50 | 320 | |||||||||||||||||||||||||||
Total
|
$ | 2,805 | $ | 3,350 | $ | 3,070 | $ | 2,270 | $ | 1,300 | $ | 795 | $ | 430 | $ | 435 | $ | 5,230 |
(a)
|
Consists of capital expenditures for planned new wind projects that have received applicable internal approvals and related transmission. NextEra Energy Resources plans to add new wind generation of approximately 3,500 mw to 5,000 mw in 2010 to 2014, including 754 mw added in 2010 and approximately 700 mw to 1,000 mw in 2011, at a total cost of approximately $7 billion to $10 billion.
|
(b)
|
Consists of capital expenditures for planned new solar projects that have received applicable internal approvals and related transmission. NextEra Energy Resources plans to add new solar generation of approximately 400 mw to 600 mw in 2010 through 2014, including 5 mw added in 2010, at a total cost of approximately $3 billion to $4 billion.
|
(c)
|
Includes nuclear fuel.
|
(d)
|
Consists of capital expenditures that have received applicable internal approvals. NextEra Energy Resources plans to add natural gas infrastructure projects totaling approximately $400 million to $600 million in 2010 through 2014.
|
Facility
|
Location
|
Net
Capability
(mw)
|
Portfolio
Category
|
Operating License Expiration Dates
|
Next Scheduled
Refueling Outage
|
|||||||||
Seabrook
|
New Hampshire
|
1,100
|
Merchant
|
2030
|
(a)
|
April 2011
|
||||||||
Duane Arnold
|
Iowa
|
431
|
Contracted
(b)
|
2034
|
October 2012
|
|||||||||
Point Beach Unit No. 1
|
Wisconsin
|
509
|
Contracted
(c)
|
2030
|
October 2011
|
|||||||||
Point Beach Unit No. 2
|
Wisconsin
|
514
|
Contracted
(c)
|
2033
|
March 2011
|
(a)
|
In 2010, NextEra Energy Resources filed an application with the NRC to renew Seabrook's operating license for an additional 20 years.
|
(b)
|
NextEra Energy Resources sells substantially all of its share of the output of Duane Arnold under a long-term contract expiring in 2014.
|
(c)
|
NextEra Energy Resources sells 100% of the output of Point Beach Units Nos. 1 and 2 under a long-term contract through the current license terms.
|
Union
|
Location
|
Contract
Expiration Date
|
% of NextEra Energy
Resources Employees
Covered
|
||||||
IBEW
|
Wisconsin
|
June 2012 - September 2013
(a)
|
10
|
%
|
|||||
Utility Workers Union of America
|
New Hampshire
|
December 2013
|
5
|
||||||
IBEW
|
Iowa
|
May 2012
|
3
|
||||||
Security Police and Fire Professionals of America
|
Iowa
|
July 2012
|
3
|
||||||
IBEW
|
Maine
|
February 2013
|
2
|
||||||
IBEW
|
California
|
March 2012
|
-
|
(b)
|
|||||
Total
|
23
|
%
|
(a)
|
Various employees at Point Beach are represented by the IBEW under four separate contracts with different expiration dates.
|
(b)
|
Employees constitute less than 1% of NextEra Energy Resources' employees.
|
·
|
voluntary reporting of its GHG emissions and climate change strategy through the Carbon Disclosure Project (an investor-led initiative to identify climate change impacts on publicly-traded companies);
|
·
|
participation in the U.S. Climate Action Partnership (an alliance made up of a diverse group of U.S.-based businesses and environmental organizations, which in January 2009 issued the Blueprint for Legislative Action, a set of legislative principles and recommendations to address global climate change and the reduction of GHG emissions);
|
·
|
participation in the Clinton Global Initiative (an organization which seeks to foster shared commitment by individuals, businesses and governments to confront major world issues and achieve real change);
|
·
|
participated in the EPA's Climate Leaders Program to reduce GHG intensity in the United States 18% by 2012, including reporting of emissions data annually. During 2008, NextEra Energy met its commitment to achieve a 2008 target emissions rate reduction of 18% below a 2001 baseline emission rate measured in pounds per mwh. This program was discontinued in 2009 by the EPA in response to the EPA's mandatory GHG reporting rule requirement;
|
·
|
supporting Edison Electric Institute's climate change framework, which supports the concept of mandatory legislation capping carbon emissions economy wide and recommends, among other things, an 80% reduction of carbon emissions from current levels by 2050; and
|
·
|
focusing on customer energy efficiency and conservation through programs such as Energy Smart Florida and EarthEra Renewable Energy Trust.
|
·
|
RPS, currently in place in approximately 30 states and the District of Columbia, require electricity providers in the state or district to meet a certain percentage of their retail sales with energy from renewable sources. These standards vary, but the majority include requirements to meet 10% to 25% of the electricity providers' retail sales with energy from renewable sources by 2025.
|
·
|
The Regional Greenhouse Gas Initiative (RGGI) is a GHG reduction initiative whereby ten Northeast and Mid-Atlantic member states have enacted laws and adopted regulations that establish a cap-and-trade program for covered electric generating units in Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, Vermont, Maryland, Massachusetts and Rhode Island. RGGI members have agreed to stabilize power plant CO
2
emissions at 2009 levels through the end of 2014 and to further reduce the sector's emissions another 10% by the end of 2018. The RGGI GHG reduction requirements affect 12 NextEra Energy Resources' fossil electric generating units, requiring those electric generating units to reduce emissions or to acquire CO
2
allowances for emissions of CO
2
. Based on NextEra Energy Resources' clean generating portfolio in the RGGI marketplace, NextEra Energy Resources experienced a positive impact on earnings in 2009 and 2010 and expects that the requirements will have a positive overall impact on NextEra Energy Resources' earnings in 2011. In the fourth quarter of 2010, the RGGI participating states began efforts to support the 2012 program review called for in the RGGI Memorandum of Understanding, which will be a comprehensive evaluation including program success, program impacts, additional reductions, electricity imports and associated emissions leakage, and offsets.
|
·
|
The Western Climate Initiative (WCI) is a GHG reduction initiative with a goal of reducing CO
2
emissions by 15% below 2005 levels by 2020 for participants (Arizona, California, Oregon, Montana, New Mexico, Washington and Utah, as well as British Columbia, Manitoba, Ontario and Quebec, Canada). Due to concerns about the economic impacts of GHG reductions programs, some states and provinces are reconsidering their commitment to the WCI.
|
·
|
California Greenhouse Gas Regulation (CGGR) - California has enacted legislation to reduce GHG emissions in the state to 1990 emissions levels by 2020. In December 2010, pursuant to the legislation, the California Air Resources Board approved a multi-sector GHG cap-and-trade program along with other GHG reduction measures which will begin in 2012. Based on NextEra Energy Resources' clean generating portfolio in California, the impact of complying with the CGGR is not expected to have a material adverse impact on the financial statements of NextEra Energy.
|
Name
|
Age
|
Position
|
Effective Date
|
|||
Christopher A. Bennett
|
52
|
Executive Vice President & Chief Strategy, Policy & Business Process Improvement Officer of NextEra Energy
|
February 15, 2008
(b)
|
|||
Paul I. Cutler
|
51
|
Treasurer of NextEra Energy
Treasurer of FPL
Assistant Secretary of NextEra Energy and FPL
|
February 19, 2003
February 18, 2003
December 10, 1997
|
|||
F. Mitchell Davidson
|
48
|
Chief Executive Officer of NextEra Energy Resources
President of NextEra Energy Resources
|
July 29, 2008
December 15, 2006
|
|||
Moray P. Dewhurst
|
55
|
Vice Chairman and Chief of Staff of NextEra Energy
|
August 17, 2009
|
|||
Shaun J. Francis
|
39
|
Executive Vice President, Human Resources of NextEra Energy
Executive Vice President, Human Resources of FPL
|
August 16, 2010
January 31, 2011
|
|||
Chris N. Froggatt
|
53
|
Vice President of NextEra Energy
Controller and Chief Accounting Officer of NextEra Energy
|
October 19, 2009
February 27, 2010
|
|||
Lewis Hay, III
|
55
|
Chief Executive Officer of NextEra Energy
Chairman of NextEra Energy and FPL
|
June 11, 2001
January 1, 2002
|
|||
Joseph T. Kelliher
|
50
|
Executive Vice President, Federal Regulatory Affairs of NextEra Energy
|
May 18, 2009
|
|||
Robert L. McGrath
|
57
|
Executive Vice President, Engineering, Construction & Corporate Services of NextEra Energy and FPL
|
February 21, 2005
(b)
|
|||
Manoochehr K. Nazar
|
56
|
Executive Vice President, Nuclear Division and Chief Nuclear Officer of NextEra Energy
Executive Vice President, Nuclear Division and Chief Nuclear Officer of FPL
|
January 1, 2010
January 15, 2010
|
|||
Armando J. Olivera
|
61
|
Chief Executive Officer of FPL
President of FPL
|
July 17, 2008
June 24, 2003
|
|||
Armando Pimentel, Jr.
|
48
|
Chief Financial Officer of NextEra Energy and FPL
Executive Vice President, Finance of NextEra Energy and FPL
|
May 3, 2008
February 15, 2008
(b)
|
|||
James L. Robo
|
48
|
President and Chief Operating Officer of NextEra Energy
|
December 15, 2006
|
|||
Antonio Rodriguez
|
68
|
Executive Vice President, Power Generation Division of NextEra Energy
Executive Vice President, Power Generation Division of FPL
|
January 1, 2007
(b)
July 1, 1999
(b)
|
|||
Charles E. Sieving
|
38
|
Executive Vice President & General Counsel of NextEra Energy
Executive Vice President of FPL
Assistant Secretary of NextEra Energy
|
December 1, 2008
January 1, 2009
May 21, 2010
|
(a)
|
Information is as of February 24, 2011. Executive officers are elected annually by, and serve at the pleasure of, their respective boards of directors. Except as noted below, each officer has held his present position for five years or more and his employment history is continuous. Mr. Bennett was vice president, business strategy & policy of NextEra Energy from July 2007 to February 2008. From September 1995 to June 2007, Mr. Bennett was vice president of Dean & Company, a management consulting and investment firm. Mr. Davidson was senior vice president of business management of NextEra Energy Resources from March 2005 to December 2006. Mr. Dewhurst was vice president, finance and chief financial officer of NextEra Energy and senior vice president, finance and chief financial officer of FPL from July 2001 to May 2008. Mr. Francis was general manager of human resources for GE Transportation, a global technology leader and supplier to the railroad, marine, drilling, mining and wind power industries from February 2008 to August 2010. From February 2006 to February 2008, Mr. Francis served as general manager of human resources of GE Equipment Services, a global technology leader in the transportation industry including rail cars, sea containers, tractor trailers, and Penske truck and leasing. Mr. Froggatt was the vice president and treasurer of Pinnacle West Capital Corporation, a public utility holding company, and its major subsidiary, Arizona Public Service Company (APS), a regulated utility, from December 2008 to October 2009. From October 2002 to December 2008, he was vice president, controller and chief accounting officer of APS. Mr. Hay was also chief executive officer of FPL from January 2002 to July 2008. Mr. Hay was president of NextEra Energy from June 2001 to December 2006. Mr. Kelliher was chairman of the FERC from July 2005 to January 2009. Mr. Nazar was the chief nuclear officer of NextEra Energy from January 2009 to December 2009. He was senior vice president and chief nuclear officer of FPL from November 2007 to January 2009. From October 2003 to November 2007, Mr. Nazar was senior vice president & chief nuclear officer of American Electric Power Company, Inc., a public utility holding company. Mr. Pimentel was a partner of Deloitte & Touche LLP, an independent registered public accounting firm, from June 1998 to February 2008. Mr. Robo was president of NextEra Energy Resources from July 2002 to December 2006. He was also vice president, corporate development and strategy of NextEra Energy from March 2002 to December 2006. Mr. Sieving was also general counsel of FPL from January 2009 to May 2010. Mr. Sieving was executive vice president, general counsel and secretary of PAETEC Holding Corp., a communications services and solutions provider, from February 2007 to November 2008 and was primarily responsible for all legal and regulatory matters. Prior to that, Mr. Sieving was a partner in the corporate, securities and finance practice group of Hogan Lovells US LLP, an international law firm, with which he had been associated since October 1998.
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NextEra Energy title changed from vice president to executive vice president effective May 23, 2008. Where applicable, FPL title changed from senior vice president to executive vice president effective July 17, 2008.
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The operations of NextEra Energy and FPL are subject to complex and comprehensive federal, state and other regulation. This extensive regulatory framework, some but not all of which is more specifically identified in the following risk factors, regulates, among other things, NextEra Energy's and FPL's industry, rate and cost structure, operation of nuclear power facilities, construction and operation of generation, transmission and distribution facilities, acquisition, disposal, depreciation and amortization of assets and facilities, decommissioning costs, transmission reliability, wholesale and retail competition, and commodities trading and derivatives transactions. In their business planning and in the management of their operations, NextEra Energy and FPL must address the effects of regulation on their businesses and proposed changes in the regulatory framework. Significant changes in the nature of the regulation of NextEra Energy’s and FPL’s businesses could require changes to their business planning and management of their businesses and could adversely affect their financial results, including, but not limited to, the value of their assets. NextEra Energy and FPL must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions. Should NextEra Energy or FPL be unsuccessful in obtaining necessary licenses or permits on acceptable terms, should there be a delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any investigations or enforcement actions or impose penalties or disallowances on NextEra Energy or FPL, NextEra Energy’s and FPL’s businesses could be adversely affected.
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FPL is a regulated entity subject to the jurisdiction of the FPSC over a wide range of business activities, including, among other items, the retail rates charged to its customers, the terms and conditions of its services, procurement of electricity for its customers, issuance of securities, transfers of some utility assets and facilities to affiliates, and aspects of the siting and operation of its generating plants and transmission and distribution systems for the sale of electric energy. Lone Star, which is a wholly-owned subsidiary of NextEra Energy, is a regulated entity subject to the jurisdiction of the PUCT over a wide range of business activities. The FPSC and PUCT have the authority to disallow recovery by FPL and Lone Star, respectively, of costs that it considers excessive or imprudently incurred. The regulatory process, which may be adversely affected by the political, regulatory and economic environment in Florida, Texas and elsewhere, can restrict NextEra Energy’s and FPL’s ability to grow earnings and does not provide any assurance as to achievement of authorized or other earnings levels. NextEra Energy’s and FPL’s financial results could be materially adversely affected if any material amount of costs, a return on certain assets or an appropriate return on capital cannot be recovered through base rates, cost recovery clauses or other regulatory mechanisms.
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Decisions of the FPSC and the PUCT have been and, in the future, may be adversely affected by the local and national political, regulatory and economic environment and may adversely affect the financial results of NextEra Energy and FPL. These decisions may require, for example, NextEra Energy or FPL to cancel or delay planned development activities and to reduce or delay other planned capital expenditures which could reduce the earnings potential of NextEra Energy and FPL.
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In addition to the regulatory risks that may affect NextEra Energy and FPL described above, the extensive federal regulation of the operations of NextEra Energy and FPL exposes the companies to significant and increasing compliance costs. NextEra Energy and FPL also are subject to costs and other potentially adverse effects of regulatory investigations, proceedings, settlements, decisions and claims, including, among other items, potentially significant monetary penalties for non-compliance. As an example, under the Energy Policy Act of 2005, NextEra Energy and FPL, as owners and operators of bulk power transmission systems and/or electric generation facilities, are subject to mandatory reliability standards. Compliance with these mandatory reliability standards may subject NextEra Energy and FPL to higher operating costs and may result in increased capital expenditures. If FPL or NextEra Energy is found not to be in compliance with these standards, it may incur substantial monetary penalties and other sanctions.
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From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting NextEra Energy and FPL. Adverse press coverage and other adverse statements may result in investigations by regulators, legislators and law enforcement officials or in lawsuits. Responding to these investigations and lawsuits, regardless of the ultimate outcome of the proceeding, can divert the time and effort of senior management from NextEra Energy’s and FPL’s businesses. Addressing any adverse publicity, governmental scrutiny or enforcement or other legal proceedings is time consuming and expensive and, regardless of the factual basis for the assertions being made, can also have a negative impact on the reputation of NextEra Energy and FPL and on the morale and performance of their employees, which could adversely affect their financial results.
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NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives, including, for example, initiatives regarding regulation, deregulation or restructuring of the energy industry and regulation of the commodities trading and derivatives markets. NextEra Energy and its subsidiaries will need to adapt to any changes and may face increasing costs and competitive pressures in doing so. NextEra Energy produces the majority of its electricity from clean and renewable fuels, such as nuclear, natural gas and wind, operates in the competitive segment of the electric industry, has targeted the competitive segments of the electric industry for some of its future growth and relies on the efficient operation of the commodities trading and derivatives markets. NextEra Energy’s financial results and growth prospects could be adversely affected as a result of new, or changes in, laws, regulations or interpretations, or other regulatory initiatives, including, but not limited to, those that reverse or restrict the competitive restructuring of the energy industry or the effective operation of the commodities trading or derivatives markets.
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NextEra Energy and FPL are subject to domestic and foreign environmental laws and regulations, including, but not limited to, extensive federal, state, and local environmental statutes, rules and regulations relating to air quality, water quality and usage, climate change, GHG, including, but not limited to, CO
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emissions, waste management, hazardous wastes, marine, avian and other wildlife mortality and habitat protection, natural resources, health, safety and RPS that could, among other things, prevent or delay the development of power generation, power or natural gas transmission, or other infrastructure projects, restrict the output of some existing facilities, limit the use of some fuels required for the production of electricity, require additional pollution control equipment, and otherwise increase costs or limit or eliminate certain operations. There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future as a result of new legislation, the current trend toward more stringent standards, and stricter and more expansive application of existing environmental regulations. For example, among other potential or pending changes described elsewhere in this report, the process of hydraulic fracturing or similar technologies to drill for natural gas and related compounds used by NextEra Energy's gas infrastructure business are currently being debated for potential regulation at the state and federal levels. Violations of current or future laws, rules and regulations could expose NextEra Energy and FPL to regulatory proceedings, disputes with, and legal challenges by, third parties, and potentially significant civil fines, criminal penalties and other sanctions.
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Federal or state laws or regulations may be adopted that would impose new or additional limits on GHG, including, but not limited to, CO
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and methane, from electric generating units storing and combusting fossil fuels like coal and natural gas. The potential effects of such GHG emission limits on NextEra Energy’s and FPL’s electric generating units are subject to significant uncertainties based on, among other things, the timing of the implementation of any new requirements, the required levels of emission reductions, the nature of any market-based or tax-based mechanisms adopted to facilitate reductions, the relative availability of GHG emission reduction offsets, the development of cost-effective, commercial-scale carbon capture and storage technology and supporting regulations and liability mitigation measures, and the range of available compliance alternatives. While NextEra Energy’s and FPL’s electric generating units emit GHGs at a lower rate of emissions than most of the U.S. electric generation sector, the financial results of NextEra Energy and FPL could be adversely affected to the extent that any new GHG emission limits, among other potential impacts:
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make some of NextEra Energy’s and FPL’s electric generating units uneconomical to operate in the long term;
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require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or
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affect the availability or cost of fossil fuels.
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Together, FPL and NextEra Energy’s other subsidiaries own, or hold undivided interests in, eight nuclear generation units in four states. The construction, operation and maintenance of the facilities involve inherent risks, including, but not limited to, the following:
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The nuclear generation facilities are subject to environmental, health and financial risks, such as risks relating to site storage of spent nuclear fuel, the disposition of spent nuclear fuel, leakage and emissions of tritium and other radioactive elements in the event of a nuclear accident or otherwise, the threat of a terrorist attack and other potential liabilities arising out of the ownership or operation of the facilities. Although NextEra Energy and FPL maintain decommissioning funds and external insurance coverage which are intended to reduce the financial exposure to some of these risks, the cost of decommissioning the facilities could exceed the amount available in the decommissioning funds, and the liability and property damages could exceed the amount of insurance coverage. In the event of an incident at any nuclear generation facility in the United States, NextEra Energy and FPL could be assessed significant retrospective assessments and/or retrospective insurance premiums as a result of their participation in a secondary financial protection system and nuclear insurance mutual companies.
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The NRC has broad authority to impose licensing and safety-related requirements for the construction of nuclear generation facilities, the addition of capacity at existing nuclear generation facilities, and the operation and maintenance of nuclear generation facilities, and such requirements are subject to change. In the event of non-compliance, the NRC has the authority to impose fines or shut down a nuclear generation facility, or to take both of these actions, depending upon its assessment of the severity of the situation, until compliance is achieved. NRC orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require NextEra Energy and FPL to incur substantial operating and capital expenditures at their nuclear generation facilities. In addition, any serious nuclear incident occurring at a NextEra Energy or FPL plant could result in substantial remediation costs and other expenses. A major incident at a nuclear facility anywhere in the world could cause the NRC to limit or prohibit the operation or licensing of any domestic nuclear generation facility. An incident at a nuclear facility anywhere in the world also could cause the NRC to impose additional conditions or other requirements on the industry, which could increase costs and result in additional capital expenditures.
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The operating licenses for NextEra Energy’s and FPL’s nuclear generation facilities extend through at least 2030. If any of NextEra Energy’s or FPL’s nuclear generation units cannot be operated through the end of their respective operating licenses, NextEra Energy or FPL may be required to increase depreciation rates, incur impairment charges and accelerate future decommissioning expenditures, which could adversely affect their financial results.
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Terrorist threats and increased public scrutiny of nuclear generation facilities could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict.
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NextEra Energy and FPL may incur significant costs for development of projects, including, but not limited to, preliminary engineering, permitting, legal and other expenses before it can be established whether a project is feasible, economically attractive, capable of being financed or, in some cases, approved for regulatory recoveries. The ability of NextEra Energy and FPL to complete construction of, and capital improvement projects for, their generation, transmission, distribution, gas infrastructure and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms, delays in obtaining or renewing necessary licenses, permits, rights-of-way and other approvals, disputes involving contractors, labor organizations, land owners and other third parties, negative publicity, transmission interconnection issues and other factors or failures. If any development project or construction or capital improvement project is not completed or is delayed or subject to cost overruns, NextEra Energy's and FPL's operational and financial results may be adversely affected. In any such event, among other matters, NextEra Energy and FPL could be subject to additional costs, which, in some cases, may not be approved for or recoverable through regulatory mechanisms, and could result in delay or termination payments and other damages under committed contracts, loss of tax credits and the write-off of their investment in the project.
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The operation and maintenance of power generation, transmission and distribution facilities involve many risks, such as those identified elsewhere in these risk factors and those arising due to:
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risks of start-up operations;
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failures in the supply, availability or transportation of fuel;
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the impact of unusual or adverse weather conditions, including, but not limited to, natural disasters such as hurricanes, floods, earthquakes and droughts;
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performance below expected or contracted levels of output or efficiency;
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breakdown or failure of equipment, transmission and distribution lines or pipelines;
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availability of replacement equipment;
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risks of human injury from energized equipment;
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availability of adequate water resources and ability to satisfy water discharge requirements;
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inability to properly manage or mitigate known equipment defects throughout NextEra Energy’s and FPL’s generation fleets and transmission and distribution systems;
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use of new or unproven technology; and
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dependence on a specific fuel source.
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The occurrence of any of these effects or events could result in, among other matters, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines, replacement equipment costs or an obligation to purchase or generate replacement power at potentially higher prices to meet contractual obligations. Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses. Breakdown or failure of an operating facility of NextEra Energy, for example, may prevent NextEra Energy from performing under applicable power sales agreements which, in some situations, could result in termination of the agreement or subject NextEra Energy to liability for liquidated damages. The operation and maintenance of NextEra Energy’s gas infrastructure and power transmission businesses also are subject to many of the foregoing risks or substantially similar risks.
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To operate successfully in the competitive wholesale energy markets, NextEra Energy must, among other things, efficiently develop and operate its generating assets, procure adequate supplies of fuel and associated transportation at acceptable prices, successfully and timely complete project restructuring activities, maintain the qualifying facility status of certain projects and complete its energy deliveries in a timely manner. Its ability to do so is subject to a variety of risks. In addition to risks such as those identified elsewhere in these risk factors, risks that specifically affect NextEra Energy’s success in competitive wholesale markets and in the gas infrastructure business include:
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NextEra Energy may face increased competition, including, but not limited to, from other and new sources of power generation, excess generation capacity and shifting demand for power, legal and regulatory developments and general economic conditions. Risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project agreements may impede development activities.
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There can be significant volatility in market prices for fuel, electricity and renewable and other energy commodities. NextEra Energy’s inability or failure to hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures could significantly impair NextEra Energy’s financial results.
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A portion of NextEra Energy’s power generation facilities operate wholly or partially without long-term power purchase agreements. As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may increase the volatility of NextEra Energy’s financial results.
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NextEra Energy depends upon power transmission and natural gas transportation facilities owned and operated by others. If transmission or transportation of sufficient power or natural gas is unavailable or disrupted, NextEra Energy’s ability to sell and deliver its wholesale power or natural gas may be limited.
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NextEra Energy’s competitive energy business, NextEra Energy Resources, depends heavily on government policies that support renewable energy and enhance the economic feasibility of developing wind and solar energy projects. The federal government, a majority of the 50 U.S. states and portions of Canada and Spain provide incentives, such as tax incentives, RPS or feed-in tariffs, that support the sale of energy from renewable sources, such as wind and solar energy. The applicable legislation often grants the relevant state public utility commission the ability to reduce electric supply companies’ obligations to meet the requirements in specified circumstances. Any reduction or elimination of existing supportive policies, including, but not limited to, RPS or feed-in tariffs, and ultimately any failure to renew or increase existing supportive policies, could result in less demand for generation from NextEra Energy’s wind and solar energy projects.
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The Recovery Act includes, among other things, provisions that allow companies building wind facilities the option to choose among the following three investment cost recovery mechanisms: (1) PTCs which were extended for wind facilities placed in service prior to 2013, (2) ITCs of 30% of the cost for qualifying wind facilities placed in service prior to 2013, or (3) an election to receive a cash grant of 30% of the cost of qualifying wind facilities placed in service in 2009, 2010 or 2011, or if construction began prior to December 31, 2011 and the wind facility is placed in service prior to 2013. An election to receive a cash grant of 30% in lieu of the 30% ITC also applies to the cost of qualifying solar facilities placed in service in either 2009, 2010 or 2011, or if construction began prior to December 31, 2011 and the solar facility is placed in service prior to 2017. In order for NextEra Energy to continue to economically develop wind and solar energy projects in the future, it will need to utilize the investment cost recovery mechanisms currently available as well as requiring similar public policy support in the future.
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NextEra Energy and FPL are exposed to risks associated with the creditworthiness and performance of their customers, hedging counterparties and vendors under contracts for the supply of equipment, materials, fuel and other goods and services required for their business operations and for the construction and operation of, and for capital improvements to, their facilities. Adverse conditions in the energy industry or the general economy, as well as circumstances of individual customers, counterparties and vendors, may affect the ability of some customers, counterparties and vendors to perform as required under their contracts. If any counterparty or vendor fails to fulfill its contractual obligations, NextEra Energy and FPL may need to make arrangements with other counterparties or vendors, which could result in higher costs, untimely completion of power generation facilities and other projects, and/or a disruption of their operations. If a defaulting counterparty is in poor financial condition, NextEra Energy and FPL may not be able to recover damages for any contract breach.
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NextEra Energy’s and FPL’s results of operations are affected by the growth in customer accounts and by customer usage, each of which directly influences the demand for electricity and the need for additional power generation and power delivery facilities. A lack of growth or slower growth in the number of retail customers or in non-weather related customer usage, such as that which has occurred over the past several years, could adversely affect NextEra Energy’s and FPL’s results of operations. Customer growth and customer usage are affected by a number of factors outside the control of NextEra Energy and FPL, such as mandated energy efficiency measures, demand side management goals, and economic and demographic conditions, such as population, job and income growth, housing starts and new business formation. NextEra Energy’s and FPL’s financial results may also be adversely affected by FPL’s ability to negotiate or renegotiate franchise agreements on acceptable terms with municipalities and counties in Florida. As a result, NextEra Energy and FPL may make, but not fully realize the anticipated benefits from, significant investments and expenditures, which could adversely affect their financial results.
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NextEra Energy’s and FPL’s financial results can be negatively affected by changes in the weather. Weather conditions directly influence the demand for electricity and natural gas, affect the price of energy and energy-related commodities, and can affect the production of electricity at power generating facilities, including, but not limited to, wind, solar and hydro-powered facilities. For example, the level of wind resource affects the results of operations of wind generating facilities. Since the levels of wind, solar and hydro resources are variable and difficult to predict, NextEra Energy’s results of operations for individual wind, solar and hydro facilities vary or may vary significantly from period to period depending on the level of available resources. To the extent that resources are not available at planned levels, the returns from these facilities may be less than expected.
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In addition, NextEra Energy’s and FPL’s financial results would be affected by the impact of severe weather, such as hurricanes, floods and earthquakes, which can be destructive and cause power outages and property damage, reduce revenue, affect fuel supply, and require NextEra Energy and FPL to incur additional costs to restore service and repair damaged facilities. As a company that provides electric service throughout most of the east and lower west coasts of Florida, FPL operates in an area that historically has been more prone to severe weather events, such as hurricanes. A disruption or failure of electric generation, transmission or distribution systems or natural gas production, transmission, storage or distribution systems in the event of a hurricane, tornado, or other severe weather event, or otherwise, could prevent NextEra Energy and FPL from operating their businesses in the normal course and could result in any of the adverse consequences described above. At FPL and other regulated businesses of NextEra Energy, recovery of costs to restore service and repair damaged facilities is or may be subject to regulatory approval, and any determination by the regulator not to permit timely and full recovery of the costs incurred would result in a negative financial impact on NextEra Energy and FPL.
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NextEra Energy and FPL rely on access to capital and credit markets as significant sources of liquidity for capital requirements and other operations requirements that are not satisfied by operating cash flows. Disruptions, uncertainty or volatility in those capital and credit markets, such as conditions that have existed in the recent past, could increase NextEra Energy’s and FPL’s cost of capital. If NextEra Energy or FPL is unable to access regularly the capital and credit markets on terms that are reasonable, it may have to delay raising capital, issue shorter-term securities and incur an unfavorable cost of capital, which, in turn, could adversely affect its ability to grow its businesses and could contribute to lower earnings and reduced financial flexibility. The market price and trading volume of NextEra Energy’s common stock are subject to fluctuations as a result of, among other factors, general stock market conditions and changes in market sentiment regarding the operations, business, growth prospects and financing strategies of NextEra Energy and its subsidiaries.
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Although NextEra Energy’s competitive energy subsidiaries have used non-recourse or limited-recourse, project-specific financing in the past, market conditions and other factors could adversely affect
the future availability of such financing. The inability of NextEra Energy’s subsidiaries to access the capital and credit markets to provide project-specific financing for electric-generating and other energy facilities on favorable terms, whether because of disruptions or volatility in those markets or otherwise, could necessitate additional capital raising or borrowings by NextEra Energy and/or Capital Holdings in the future.
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The inability of subsidiaries that have existing project-specific financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default which, if not cured or waived, might result in the specific project, and potentially in some limited instances its parent companies, being required to repay the associated debt or other borrowings earlier than otherwise anticipated, and if such repayment were not made, the lenders or security holders would generally have rights to foreclose against the project assets and related collateral, any of which actions could negatively affect NextEra Energy’s financial results, as well as the availability or terms of future financings for NextEra Energy or its subsidiaries.
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The inability of NextEra Energy, Capital Holdings and FPL to maintain their current credit ratings could adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, could impact NextEra Energy’s and FPL’s ability to grow their businesses and service indebtedness and repay borrowings, and would likely increase their interest costs. Some of the factors that can affect credit ratings are cash flows, liquidity, the amount of debt as a component of total capitalization, and political, legislative and regulatory actions. There can be no assurance that one or more of the ratings of NextEra Energy, Capital Holdings and FPL will not be lowered or withdrawn entirely by a rating agency.
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The inability of NextEra Energy’s, Capital Holdings’ and FPL’s credit providers to maintain credit ratings acceptable under various agreements, or to fund their credit commitments, could require NextEra Energy, Capital Holdings or FPL, among other things, to renegotiate requirements in agreements, find an alternative credit provider with acceptable credit ratings to meet funding requirements, or post cash collateral.
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NextEra Energy and FPL use derivative instruments, such as swaps, options, futures and forwards, some of which are traded in the over-the-counter (OTC) markets or on exchanges, to manage their commodity and financial market risks, and for NextEra Energy to engage in trading and marketing activities. NextEra Energy could recognize financial losses as a result of volatility in the market values of these derivative instruments or if a counterparty fails to perform or make payments under these derivative instruments. NextEra Energy also could suffer a reduction in operating cash flows as a result of the requirement to post margin cash collateral. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management’s judgment or use of estimates. Although NextEra Energy and FPL execute transactions in derivative instruments on either recognized exchanges or via the OTC markets, depending on the most favorable credit and market execution factors, there is greater volatility and less liquidity in transactions executed in OTC markets and, as a result, NextEra Energy and FPL may not be able to execute such transactions in times of market volatility. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these derivative instruments. In addition, FPL’s use of such instruments could be subject to prudence challenges and, if found imprudent, could result in disallowances of cost recovery for such use by the FPSC.
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NextEra Energy provides full energy and capacity requirement services, which include, for example, load-following services and various ancillary services, primarily to distribution utilities to satisfy all or a portion of such utilities’ power supply obligations to their customers. The supply costs for these transactions may be affected by a number of factors, including, but not limited to, events that may occur after NextEra Energy has committed to supply power, such as weather conditions, fluctuating prices for energy and ancillary services, and the ability of the distribution utilities’ customers to elect to receive service from competing suppliers. If the supply costs are not favorable, NextEra Energy’s operating costs could increase and adversely affect its results of operations.
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NextEra Energy is an active participant in energy markets. The liquidity of regional energy markets is an important factor in the company's ability to manage risks in these operations. Over the past several years, other market participants have ceased or significantly reduced their activities in energy markets as a result of several factors, including, but not limited to, government investigations, changes in market design, and deteriorating credit quality. Liquidity in the energy markets can be adversely affected by price volatility, restrictions on the availability of credit, and other factors. As a result, reductions in liquidity may restrict the ability of NextEra Energy to manage its risks, and this could negatively affect NextEra Energy’s financial results.
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NextEra Energy and FPL have hedging and trading procedures and associated risk management tools, such as separate but complementary financial, credit, operational, compliance and legal reporting systems, internal controls, management review processes and other mechanisms, that may not work as planned. Risk management tools and metrics such as daily value at risk, earnings at risk, stop loss limits and liquidity guidelines are based on historical price movements. If price movements significantly or persistently deviate from historical behavior, the risk management tools may not protect against significant losses. As a result of these and other factors, NextEra Energy and FPL cannot predict with precision the impact that risk management decisions may have on their financial results and liquidity.
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The Dodd-Frank Act was enacted into law in July 2010 which, among other things, provides for the regulation of the OTC derivatives market. While the legislation is broad and detailed, substantial portions of the legislation require implementing rules to be adopted by federal governmental agencies including, but not limited to, the SEC and the U.S. Commodity Futures Trading Commission (CFTC). NextEra Energy and FPL cannot predict the final rules that will be adopted to implement the OTC derivatives market provisions of the Dodd-Frank Act. Those rules could negatively affect NextEra Energy’s and FPL’s ability to hedge their commodity and interest rate risks, which could have a material adverse effect on NextEra Energy’s and FPL’s financial results. The rules also could require NextEra Energy Resources to restructure part of its energy marketing and trading operations or to discontinue certain portions of its business. In addition, if the rules require NextEra Energy and FPL to post cash collateral with respect to swap transactions, NextEra Energy’s and FPL’s liquidity could be materially adversely affected, and their ability to enter into OTC derivatives to hedge commodity and interest rate risks could be significantly limited. Reporting and compliance requirements of the rules also could significantly increase operating costs and expose NextEra Energy and FPL to penalties for non-compliance.
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NextEra Energy is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry in general. In addition, NextEra Energy may be unable to identify attractive acquisition opportunities at favorable prices and to complete and integrate them successfully and in a timely manner.
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NextEra Energy is a holding company and, as such, has no material operations of its own. Substantially all of NextEra Energy’s consolidated assets are held by subsidiaries. NextEra Energy’s ability to meet its financial obligations, including, but not limited to, its guarantees, and to pay dividends on its common stock is primarily dependent on the subsidiaries’ net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends or to repay funds to NextEra Energy. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can fund NextEra Energy. NextEra Energy’s subsidiaries are separate legal entities and have no obligation to provide NextEra Energy with funds for its payment obligations. In addition, the dividend-paying ability of some of the subsidiaries is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements. The future enactment of laws or regulations also may prohibit or restrict the ability of NextEra Energy's subsidiaries to pay upstream dividends or to repay funds. NextEra Energy guarantees many of the obligations of its consolidated subsidiaries, other than FPL, through guarantee agreements with Capital Holdings. These guarantees may require NextEra Energy to provide substantial funds to its subsidiaries or their creditors or counterparties at a time when NextEra Energy is in need of liquidity to fund its own obligations or to pay dividends. In addition, in the event of a subsidiary’s liquidation or reorganization, NextEra Energy’s right to participate in a distribution of assets is subject to the prior claims of the subsidiary’s creditors.
|
·
|
NextEra Energy’s and FPL’s provision for income taxes and reporting of tax-related assets and liabilities requires significant judgments and the use of estimates. Amounts of tax-related assets and liabilities involve judgments and estimates of the timing and probability of recognition of income, deductions and tax credits, including, but not limited to, estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax credit carryforwards. Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, regulations and interpretations, financial condition and results of operations of NextEra Energy and its subsidiaries, including, but not limited to, FPL, as well as the resolution of audit issues raised by taxing authorities. Ultimate resolution of income tax matters may result in material adjustments to tax-related assets and liabilities which could negatively affect NextEra Energy’s and FPL’s financial results, financial condition and liquidity.
|
·
|
NextEra Energy’s and FPL’s
retail businesses require access to sensitive customer data in the ordinary course of business. NextEra Energy’s and FPL’s
retail businesses may also need to provide sensitive customer data to vendors and service providers who require access to this information in order to provide services, such as call center services, to the retail businesses. If a significant breach occurred, the reputation of NextEra Energy and FPL could be adversely affected, customer confidence could be diminished, customer information could be used for identity theft purposes, NextEra Energy and FPL would be subject to costs associated with the breach and/or NextEra Energy and FPL could be subject to fines and legal claims, any of which may have a negative impact on the businesses and/or NextEra Energy’s and FPL’s financial results.
|
·
|
NextEra Energy’s and FPL’s businesses are highly dependent on their ability to process and monitor, on a daily basis, a very large number of transactions, many of which are highly complex, and cross numerous and diverse markets. Due to the size, scope and geographical reach of NextEra Energy’s and FPL’s businesses, and due to the complexity of the process of power generation, transmission and distribution, the development and maintenance of NextEra Energy’s and FPL’s operational systems and infrastructure is challenging. NextEra Energy's and FPL’s operating systems and facilities may fail to operate properly or become disabled as a result of events that are either within, or wholly or partially outside, their control, such as operator error, severe weather or terrorist activities. Any such failure or disabling event could adversely affect NextEra Energy’s and FPL’s ability to process transactions and provide services, and their financial results and liquidity.
|
·
|
NextEra Energy and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including, but not limited to, integrating the modified, new or replacement system with existing systems and processes, implementing associated changes in accounting procedures and controls, and ensuring that data conversion is accurate and consistent. Any disruptions or deficiencies in existing information systems, or disruptions, delays or deficiencies in the modification or implementation of new information systems, could result in increased costs, the inability to track or collect revenues, the diversion of management’s and employees’ attention and resources, and could negatively impact the effectiveness of the companies’ control environment, and/or the companies’ ability to timely file required regulatory reports.
|
·
|
NextEra Energy and FPL also face the risks of operational failure, termination, or capacity constraints of third parties, including, but not limited to, those who provide power transmission and natural gas transportation services.
|
·
|
NextEra Energy and FPL are subject to the potentially adverse operating and financial effects of terrorist acts and threats, as well as cyber attacks and other disruptive activities of individuals or groups. NextEra Energy’s and FPL’s generation, transmission and distribution facilities, fuel storage facilities, information technology systems and other infrastructure facilities and systems and physical assets, could be direct targets of, or indirectly affected by, such activities. Terrorist acts or other similar events could harm NextEra Energy’s and FPL’s businesses by limiting their ability to generate, purchase or transmit power and by delaying their development and construction of new generating facilities and capital improvements to existing facilities. These events, and governmental actions in response, could result in a material decrease in revenues and significant additional costs to repair and insure NextEra Energy’s and FPL’s assets, and could adversely affect NextEra Energy’s and FPL’s operations by contributing to disruption of supplies and markets for natural gas, oil and other fuels. They could also impair NextEra Energy’s and FPL’s ability to raise capital by contributing to financial instability and lower economic activity.
|
·
|
NextEra Energy and FPL operate in a highly regulated industry that requires the continued operation of sophisticated information technology systems and network infrastructure. Despite NextEra Energy’s and FPL’s implementation of security measures, all of their technology systems are vulnerable to disability, failures or unauthorized access due to such activities. If NextEra Energy’s or FPL’s technology systems were to fail or be breached and be unable to recover in a timely way, NextEra Energy and FPL would be unable to fulfill critical business functions, and sensitive confidential and other data could be compromised, which could have a material adverse effect on NextEra Energy’s and FPL’s financial results.
|
·
|
The implementation of security guidelines and measures and maintenance of insurance, to the extent available, addressing such activities could increase costs. These types of events could materially adversely affect NextEra Energy’s and FPL’s financial results. In addition, these types of events could require significant management attention and resources, and could adversely affect NextEra Energy’s and FPL’s reputation among customers and the public.
|
·
|
A disruption of the regional electric transmission grid, natural gas pipeline infrastructure or other fuel sources, could negatively impact NextEra Energy’s and FPL’s businesses. Because generation, transmission systems and natural gas pipelines are part of an interconnected system, NextEra Energy and FPL face the risk of possible loss of business due to a disruption caused by the impact of an event on the interconnected system (such as severe weather or a generator or transmission facility outage, pipeline rupture, or a sudden and significant increase or decrease in wind generation) within NextEra Energy’s and FPL’s systems or within a neighboring system. Any such disruption could have a material adverse effect on NextEra Energy’s and FPL’s financial results.
|
·
|
The ability of NextEra Energy and FPL to obtain insurance, as well as the cost and coverage of such insurance, could be affected by developments affecting their businesses, as well as by international, national, state or local events, as well as the financial condition of insurers. Insurance coverage may not continue to be available at all or at rates or on terms similar to those presently available to NextEra Energy and FPL. A loss for which NextEra Energy and FPL are not fully insured could materially and adversely affect their financial results. NextEra Energy’s and FPL’s insurance may not be sufficient or effective under all circumstances and against all hazards or liabilities to which the companies may be subject.
|
·
|
NextEra Energy and FPL may not be able effectively and profitably to obtain new customers, or grow their customer base, service existing customers and meet their other business plan goals if they do not attract and retain a qualified workforce. The lack of a qualified workforce, including, for example, the loss or retirement of key executives and other employees, may adversely affect service and productivity and contribute to higher training and safety costs. Over the next several years, a significant portion of NextEra Energy’s and FPL’s workforce, including, but not limited to, many workers with specialized skills maintaining and servicing the nuclear generation facilities and electrical infrastructure, will be eligible to retire. Such highly skilled individuals may not be able to be replaced quickly due to the technically complex work they perform. Personnel costs also may increase due to inflationary or competitive pressures on payroll and benefits costs and revised terms of collective bargaining agreements with union employees. Employee strikes or work stoppages could disrupt operations and lead to a loss of customers and revenue.
|
·
|
NextEra Energy and FPL are required to maintain decommissioning funds to satisfy their future obligations to decommission their nuclear power plants. In addition, NextEra Energy sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NextEra Energy and its subsidiaries. A decline in the market value of the assets held in the decommissioning funds or in the defined benefit pension plan due to poor investment performance or other factors may increase the funding requirements for these obligations. Moreover, NextEra Energy’s and FPL’s defined benefit pension plan is sensitive to changes in interest rates, since, as interest rates decrease the funding liabilities increase, potentially increasing benefits costs and funding requirements. Any increase in benefits costs or funding requirements may have an adverse effect on NextEra Energy’s and FPL’s liquidity and financial results.
|
·
|
The costs of providing health care benefits to employees and retirees have increased substantially in recent years. NextEra Energy and FPL believe that their employee benefit costs, including, but not limited to, costs related to health care plans for employees and former employees, will continue to rise. The increasing costs and funding requirements associated with NextEra Energy's and FPL's health care plans may adversely affect the companies' financial results.
|
FPL Facilities
|
Location
|
No.
of Units
|
Fuel
|
Net Capability
(mw)
(a)
|
|||||||
Nuclear
|
|||||||||||
St. Lucie
|
Hutchinson Island, FL
|
2
|
Nuclear
|
1,553
|
(b)
|
||||||
Turkey Point
|
Florida City, FL
|
2
|
Nuclear
|
1,386
|
|||||||
Combined-cycle
|
|||||||||||
Fort Myers
|
Fort Myers, FL
|
1
|
Gas
|
1,432
|
|||||||
Lauderdale
|
Dania, FL
|
2
|
Gas/Oil
|
884
|
|||||||
Manatee
|
Parrish, FL
|
1
|
Gas
|
1,111
|
|||||||
Martin
|
Indiantown, FL
|
1
|
Gas/Oil/Solar Thermal
|
1,105
|
(c)
|
||||||
Martin
|
Indiantown, FL
|
2
|
Gas
|
938
|
|||||||
Putnam
|
Palatka, FL
|
2
|
Gas/Oil
|
498
|
|||||||
Sanford
|
Lake Monroe, FL
|
2
|
Gas
|
1,912
|
|||||||
Turkey Point
|
Florida City, FL
|
1
|
Gas/Oil
|
1,148
|
|||||||
West County
|
West Palm Beach, FL
|
2
|
Gas/Oil
|
2,438
|
|||||||
Steam turbines
|
|||||||||||
Cutler
|
Miami, FL
|
2
|
Gas
|
205
|
|||||||
Manatee
|
Parrish, FL
|
2
|
Oil/Gas
|
1,624
|
|||||||
Martin
|
Indiantown, FL
|
2
|
Oil/Gas
|
1,652
|
|||||||
Port Everglades
|
Port Everglades, FL
|
4
|
Oil/Gas
|
1,187
|
|||||||
Riviera
|
Riviera Beach, FL
|
2
|
Oil/Gas
|
565
|
(d)
|
||||||
St. Johns River Power Park
|
Jacksonville, FL
|
2
|
Coal/Petroleum Coke
|
254
|
(e)
|
||||||
Sanford
|
Lake Monroe, FL
|
1
|
Oil/Gas
|
138
|
|||||||
Scherer
|
Monroe County, GA
|
1
|
Coal
|
646
|
(f)
|
||||||
Turkey Point
|
Florida City, FL
|
2
|
Oil/Gas
|
788
|
|||||||
Simple-cycle combustion turbines
|
|||||||||||
Fort Myers
|
Fort Myers, FL
|
2
|
Gas/Oil
|
315
|
|||||||
Gas turbines
|
|||||||||||
Fort Myers
|
Fort Myers, FL
|
12
|
Oil
|
648
|
|||||||
Lauderdale
|
Dania, FL
|
24
|
Oil/Gas
|
840
|
|||||||
Port Everglades
|
Port Everglades, FL
|
12
|
Oil/Gas
|
420
|
|||||||
Solar PV
|
|||||||||||
DeSoto
|
Arcadia, FL
|
1
|
Solar PV
|
25
|
|||||||
Space Coast
|
Cocoa, FL
|
1
|
Solar PV
|
10
|
|||||||
TOTAL
|
23,722
|
(g)
|
(a)
|
Represents FPL's net ownership interest in plant capacity.
|
(b)
|
Excludes Orlando Utilities Commission's and the Florida Municipal Power Agency's combined share of approximately 15% of St. Lucie Unit No. 2.
|
(c)
|
The megawatts generated by the 75 mw solar thermal facility replace steam produced by this unit and therefore are not incremental.
|
(d)
|
In January 2011, these units were removed from service. See Item 1 - FPL Operations - Fossil Operations for a discussion of plant modernizations.
|
(e)
|
Represents FPL's 20% ownership interest in each of SJRPP Units Nos. 1 and 2, which are jointly owned with JEA.
|
(f)
|
Represents FPL's approximately 76% ownership of Scherer Unit No. 4, which is jointly owned with JEA.
|
(g)
|
Substantially all of FPL's properties are subject to the lien of FPL's mortgage.
|
NextEra Energy Resources Facilities
|
Location
|
Geographic Region
|
No.
of Units
|
Fuel
|
Net
Capability
(mw)
(a)
|
||||||
Wind
|
|||||||||||
Ashtabula Wind
(b)
|
Barnes County, ND
|
Midwest
|
99
|
Wind
|
148
|
||||||
Ashtabula Wind II
(c)
|
Griggs & Steele Counties, ND
|
Midwest
|
80
|
Wind
|
120
|
||||||
Ashtabula Wind III
|
Barnes County, ND
|
Midwest
|
39
|
Wind
|
62
|
||||||
Baldwin Wind
|
Burleigh County, ND
|
Midwest
|
64
|
Wind
|
102
|
||||||
Butler Ridge Wind
(b)
|
Dodge County, WI
|
Midwest
|
36
|
Wind
|
54
|
||||||
Cabazon
(b)
|
Riverside County, CA
|
West
|
53
|
Wind
|
40
|
||||||
Callahan Divide
(b)
|
Taylor County, TX
|
ERCOT
|
76
|
Wind
|
114
|
||||||
Capricorn Ridge
|
Sterling & Coke Counties, TX
|
ERCOT
|
208
|
Wind
|
364
|
||||||
Capricorn Ridge Expansion
|
Sterling & Coke Counties, TX
|
ERCOT
|
199
|
Wind
|
298
|
||||||
Cerro Gordo
(b)
|
Cerro Gordo County, IA
|
Midwest
|
55
|
Wind
|
41
|
||||||
Crystal Lake I
(b)(c)
|
Hancock County, IA
|
Midwest
|
100
|
Wind
|
150
|
||||||
Crystal Lake II
|
Winnebago County, IA
|
Midwest
|
80
|
Wind
|
200
|
||||||
Crystal Lake III
|
Winnebago County, IA
|
Midwest
|
44
|
Wind
|
66
|
||||||
Day County Wind
(b)
|
Day County, SD
|
Midwest
|
66
|
Wind
|
99
|
||||||
Delaware Mountain
|
Culberson County, TX
|
ERCOT
|
38
|
Wind
|
28
|
||||||
Diablo Wind
(b)
|
Alameda County, CA
|
West
|
31
|
Wind
|
21
|
||||||
Elk City Wind
(b)
|
Roger Mills & Beckham Counties, OK
|
Other South
|
43
|
Wind
|
99
|
||||||
Elk City Wind II
|
Roger Mills & Beckham Counties, OK
|
Other South
|
66
|
Wind
|
101
|
||||||
Endeavor Wind
|
Osceola County, IA
|
Midwest
|
40
|
Wind
|
100
|
||||||
Endeavor Wind II
|
Osceola County, IA
|
Midwest
|
20
|
Wind
|
50
|
||||||
Ghost Pine Wind
|
Trochu, Alberta, Canada
|
West
|
51
|
Wind
|
82
|
||||||
Gray County
|
Gray County, KS
|
Other South
|
170
|
Wind
|
112
|
||||||
Green Mountain
(b)
|
Somerset County, PA
|
Northeast
|
8
|
Wind
|
10
|
||||||
Green Power
|
Riverside County, CA
|
West
|
22
|
Wind
|
17
|
||||||
Green Ridge Power
|
Alameda & Contra Costa Counties, CA
|
West
|
1,463
|
Wind
|
159
|
||||||
Hancock County
(b)
|
Hancock County, IA
|
Midwest
|
148
|
Wind
|
98
|
||||||
High Winds
(b)
|
Solano County, CA
|
West
|
90
|
Wind
|
162
|
||||||
Horse Hollow Wind
(b)
|
Taylor County, TX
|
ERCOT
|
142
|
Wind
|
213
|
||||||
Horse Hollow Wind II
(b)
|
Taylor & Nolan Counties, TX
|
ERCOT
|
130
|
Wind
|
299
|
||||||
Horse Hollow Wind III
(b)
|
Nolan County, TX
|
ERCOT
|
149
|
Wind
|
224
|
||||||
Indian Mesa
|
Pecos County, TX
|
ERCOT
|
125
|
Wind
|
83
|
||||||
King Mountain
(b)
|
Upton County, TX
|
ERCOT
|
214
|
Wind
|
278
|
||||||
Lake Benton II
(b)
|
Pipestone County, MN
|
Midwest
|
137
|
Wind
|
103
|
||||||
Langdon Wind
(b)(c)
|
Cavalier County, ND
|
Midwest
|
79
|
Wind
|
118
|
||||||
Langdon Wind II
(b)(c)
|
Cavalier County, ND
|
Midwest
|
27
|
Wind
|
41
|
||||||
Lee / Dekalb Wind
|
Lee & DeKalb Counties, IL
|
Midwest
|
145
|
Wind
|
217
|
||||||
Logan Wind
(c)
|
Logan County, CO
|
West
|
134
|
Wind
|
201
|
||||||
Majestic Wind
(b)
|
Carson County, TX
|
ERCOT
|
53
|
Wind
|
80
|
||||||
Meyersdale
(b)
|
Somerset County, PA
|
Northeast
|
20
|
Wind
|
30
|
||||||
Mill Run
(b)
|
Fayette County, PA
|
Northeast
|
10
|
Wind
|
15
|
||||||
Minco Wind
|
Grady County, OK
|
Other South
|
62
|
Wind
|
99
|
||||||
Montezuma Wind
|
Solano County, CA
|
West
|
16
|
Wind
|
37
|
||||||
Montfort
(b)
|
Iowa County, WI
|
Midwest
|
20
|
Wind
|
30
|
||||||
Mount Copper
(b)
|
Murdochville, Quebec, Canada
|
Midwest
|
30
|
Wind
|
54
|
||||||
Mount Miller
(b)
|
Murdochville, Quebec, Canada
|
Midwest
|
30
|
Wind
|
54
|
||||||
Mountaineer
(b)
|
Preston & Tucker Counties, WV
|
Northeast
|
44
|
Wind
|
66
|
||||||
Mower County Wind
(c)
|
Mower County, MN
|
Midwest
|
43
|
Wind
|
99
|
||||||
New Mexico Wind
(b)
|
Quay & Debaca Counties, NM
|
West
|
136
|
Wind
|
204
|
||||||
North Dakota Wind
(b)
|
LaMoure County, ND
|
Midwest
|
41
|
Wind
|
62
|
||||||
Northern Colorado
(b)
|
Logan County, CO
|
West
|
81
|
Wind
|
174
|
||||||
Oklahoma / Sooner Wind
(b)
|
Harper & Woodward Counties, OK
|
Other South
|
68
|
Wind
|
102
|
||||||
Oliver County Wind I
(c)
|
Oliver County, ND
|
Midwest
|
22
|
Wind
|
51
|
||||||
Oliver County Wind II
(c)
|
Oliver County, ND
|
Midwest
|
32
|
Wind
|
48
|
||||||
Peetz Table Wind
(c)
|
Logan County, CO
|
West
|
133
|
Wind
|
199
|
||||||
Pubnico Point
(b)
|
Yarmouth, Nova Scotia, Canada
|
Midwest
|
17
|
Wind
|
31
|
||||||
Red Canyon Wind Energy
(b)
|
Borden, Garza & Scurry Counties, TX
|
ERCOT
|
56
|
Wind
|
84
|
||||||
Red Mesa Wind
|
Cibola County, NM
|
West
|
64
|
Wind
|
102
|
||||||
Sky River
(b)
|
Kern County, CA
|
West
|
342
|
Wind
|
77
|
||||||
Somerset Wind Power
(b)
|
Somerset County, PA
|
Northeast
|
6
|
Wind
|
9
|
||||||
South Dakota Wind
(b)
|
Hyde County, SD
|
Midwest
|
27
|
Wind
|
41
|
||||||
Southwest Mesa
(b)
|
Upton & Crockett Counties, TX
|
ERCOT
|
106
|
Wind
|
74
|
||||||
Stateline
(b)
|
Umatilla County, OR and Walla Walla County, WA
|
West
|
454
|
Wind
|
300
|
||||||
Story County Wind
(b)
|
Story County, IA
|
Midwest
|
100
|
Wind
|
150
|
||||||
Story County Wind II
(b)
|
Story & Hardin Counties, IA
|
Midwest
|
100
|
Wind
|
150
|
||||||
Vansycle
(b)
|
Umatilla County, OR
|
West
|
38
|
Wind
|
25
|
||||||
Vansycle II
|
Umatilla County, OR
|
West
|
43
|
Wind
|
99
|
||||||
Victory Garden
(b)
|
Kern County, CA
|
West
|
96
|
Wind
|
22
|
||||||
Waymart
(b)
|
Wayne County, PA
|
Northeast
|
43
|
Wind
|
65
|
||||||
Weatherford Wind
(b)
|
Custer & Washita Counties, OK
|
Other South
|
98
|
Wind
|
147
|
NextEra Energy Resources Facilities
|
Location
|
Geographic Region
|
No.
of Units
|
Fuel
|
Net
Capability
(mw)
(a)
|
||||||
Wessington Springs Wind
(b)
|
Jerauld County, SD
|
Midwest
|
34
|
Wind
|
51
|
||||||
Wilton Wind
(b)
|
Burleigh County, ND
|
Midwest
|
33
|
Wind
|
49
|
||||||
Wilton Wind II
(c)
|
Burleigh County, ND
|
Midwest
|
33
|
Wind
|
50
|
||||||
Windpower Partners 1991-92
|
Alameda & Contra Costa Counties, CA
|
West
|
279
|
Wind
|
28
|
||||||
Windpower Partners 1992
|
Alameda & Contra Costa Counties, CA
|
West
|
300
|
Wind
|
30
|
||||||
Windpower Partners 1993
|
Riverside County, CA
|
West
|
115
|
Wind
|
41
|
||||||
Windpower Partners 1993
|
Lincoln County, MN
|
Midwest
|
73
|
Wind
|
26
|
||||||
Windpower Partners 1994
|
Culberson County, TX
|
ERCOT
|
107
|
Wind
|
39
|
||||||
Wolf Ridge Wind
|
Cooke County, TX
|
ERCOT
|
75
|
Wind
|
112
|
||||||
Woodward Mountain
|
Upton & Pecos Counties, TX
|
ERCOT
|
242
|
Wind
|
160
|
||||||
Wyoming Wind
(b)
|
Uinta County, WY
|
West
|
80
|
Wind
|
144
|
||||||
Investments in joint ventures
(d)
|
Various
|
West
|
1,031
|
Wind
|
114
|
||||||
Total Wind
|
8,298
|
||||||||||
Contracted
|
|||||||||||
Bayswater
(b)
|
Far Rockaway, NY
|
Northeast
|
2
|
Gas
|
56
|
||||||
Blythe Energy
(b)
|
Blythe, CA
|
West
|
3
|
Gas
|
507
|
||||||
Calhoun
(b)
|
Eastaboga, AL
|
Other South
|
4
|
Gas/Oil
|
668
|
||||||
Cherokee
(b)
|
Gaffney, SC
|
Other South
|
2
|
Gas
|
98
|
||||||
Doswell
(b)
|
Ashland, VA
|
Northeast
|
6
|
Gas/Oil
|
708
|
||||||
Duane Arnold
|
Palo, IA
|
Midwest
|
1
|
Nuclear
|
431
|
(e)
|
|||||
Jamaica Bay
(b)
|
Far Rockaway, NY
|
Northeast
|
2
|
Gas/Oil
|
54
|
||||||
Marcus Hook 750
(b)
|
Marcus Hook, PA
|
Northeast
|
4
|
Gas
|
744
|
||||||
Point Beach
|
Two Rivers, WI
|
Midwest
|
2
|
Nuclear
|
1,023
|
||||||
Investments in joint ventures:
|
|||||||||||
SEGS III-IX
(b)
|
Kramer Junction & Harper Lake, CA
|
West
|
7
|
Solar
|
148
|
||||||
Other
|
Various
|
Northeast
|
7
|
(f)
|
303
|
||||||
Total Contracted
|
4,740
|
||||||||||
Merchant
|
|||||||||||
Doswell - Expansion
(b)
|
Ashland, VA
|
Northeast
|
1
|
Gas/Oil
|
171
|
||||||
Forney
|
Forney, TX
|
ERCOT
|
8
|
Gas
|
1,792
|
||||||
Lamar Power Partners
|
Paris, TX
|
ERCOT
|
6
|
Gas
|
1,000
|
||||||
Maine - Cape, Wyman
|
Various - ME
|
Northeast
|
6
|
Oil
|
796
|
(g)
|
|||||
Maine
(b)
|
Various - ME
|
Northeast
|
81
|
Hydro
|
359
|
||||||
Marcus Hook 50
|
Marcus Hook, PA
|
Northeast
|
1
|
Gas
|
50
|
||||||
Paradise Solar
|
West Deptford, NJ
|
Northeast
|
1
|
Solar PV
|
5
|
||||||
RISEP
|
Johnston, RI
|
Northeast
|
3
|
Gas
|
550
|
||||||
Seabrook
|
Seabrook, NH
|
Northeast
|
1
|
Nuclear
|
1,100
|
(h)
|
|||||
Investment in joint venture
|
Frackville, PA
|
Northeast
|
1
|
Waste coal
|
5
|
||||||
Total Merchant
|
5,828
|
||||||||||
TOTAL
|
18,866
|
(a)
|
Represents NextEra Energy Resources' net ownership interest in plant capacity.
|
(b)
|
These generating facilities are encumbered by liens against their assets securing various financings.
|
(c)
|
NextEra Energy Resources owns these wind facilities together with third-party investors with differential membership interests. See Note 1 - Sale of Differential Membership Interests.
|
(d)
|
Represents plants with no more than 50% ownership using wind technology. Certain facilities, totaling 57 mw, are encumbered by liens against their assets securing a financing.
|
(e)
|
Excludes Central Iowa Power Cooperative and Cornbelt Power Cooperative's combined share of 30%.
|
(f)
|
Represents plants with no more than 50% ownership using fuels and technologies such as natural gas and waste coal.
|
(g)
|
Excludes six other energy-related partners' combined share of 16%.
|
(h)
|
Excludes Massachusetts Municipal Wholesale Electric Company's, Taunton Municipal Lighting Plant's and Hudson Light & Power Department's combined share of 11.77%.
|
Nominal
Voltage
|
Overhead Lines
Pole Miles
|
Trench and Submarine
Cables Miles
|
|||||||
500
|
kv
|
1,106
|
(a)
|
-
|
|||||
230
|
kv
|
3,036
|
25
|
||||||
138
|
kv
|
1,577
|
53
|
||||||
115
|
kv
|
745
|
1
|
||||||
69
|
kv
|
165
|
14
|
||||||
Less than 69 kv
|
42,312
|
25,045
|
|||||||
Total
|
48,941
|
25,138
|
(a) Includes approximately 79 miles owned jointly with JEA.
|
2010
|
2009
|
|||||||||||||||||||||||
Quarter
|
High
|
Low
|
Cash Dividends
|
High
|
Low
|
Cash Dividends
|
||||||||||||||||||
First
|
$ | 53.75 | $ | 45.29 | $ | 0.50 | $ | 53.99 | $ | 41.48 | $ | 0.4725 | ||||||||||||
Second
|
$ | 53.50 | $ | 47.96 | $ | 0.50 | $ | 59.00 | $ | 49.70 | $ | 0.4725 | ||||||||||||
Third
|
$ | 55.98 | $ | 48.44 | $ | 0.50 | $ | 60.61 | $ | 53.13 | $ | 0.4725 | ||||||||||||
Fourth
|
$ | 56.26 | $ | 50.00 | $ | 0.50 | $ | 56.57 | $ | 48.55 | $ | 0.4725 |
Period
|
Total Number
of Shares
Purchased
(a)
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased as Part of a
Publicly Announced Program
|
Maximum Number of
Shares that May Yet be
Purchased Under the
Program
(b)
|
|||||||||||
10/1/10 - 10/31/10
|
322
|
$
|
55.51
|
-
|
20,000,000
|
||||||||||
11/1/10 - 11/30/10
|
12,250
|
$
|
53.57
|
-
|
20,000,000
|
||||||||||
12/1/10 - 12/31/10
|
2,552
|
$
|
51.93
|
-
|
20,000,000
|
||||||||||
Total
|
15,124
|
$
|
53.33
|
-
|
(a)
|
Includes: (1) in each of October 2010, November 2010 and December 2010, shares of common stock withheld from employees to pay certain withholding taxes upon the vesting of stock awards granted to such employees under the NextEra Energy, Inc. Amended and Restated Long-Term Incentive Plan (LTIP); and (2) in December 2010, shares of common stock purchased as a reinvestment of dividends by the trustee of a grantor trust in connection with NextEra Energy's obligation under a February 2006 grant under the LTIP of deferred retirement share awards to an executive officer.
|
(b)
|
In February 2005, NextEra Energy's Board of Directors authorized a common stock repurchase plan of up to 20 million shares of common stock over an unspecified period, which authorization was ratified and confirmed by the Board of Directors in December 2005.
|
Years Ended December 31,
|
|||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||
SELECTED DATA OF NEXTERA ENERGY (millions, except per share amounts):
|
|||||||||||||||
Operating revenues
|
$
|
15,317
|
$
|
15,643
|
$
|
16,410
|
$
|
15,263
|
$
|
15,710
|
|||||
Net income
|
$
|
1,957
|
(a)
|
$
|
1,615
|
(a)
|
$
|
1,639
|
(a)
|
$
|
1,312
|
(a)
|
$
|
1,281
|
(b)
|
Earnings per share of common stock - basic
|
$
|
4.77
|
(a)
|
$
|
3.99
|
(a)
|
$
|
4.10
|
(a)
|
$
|
3.30
|
(a)
|
$
|
3.25
|
(b)
|
Earnings per share of common stock - assuming dilution
|
$
|
4.74
|
(a)
|
$
|
3.97
|
(a)
|
$
|
4.07
|
(a)
|
$
|
3.27
|
(a)
|
$
|
3.23
|
(b)
|
Dividends paid per share of common stock
|
$
|
2.00
|
$
|
1.89
|
$
|
1.78
|
$
|
1.64
|
$
|
1.50
|
|||||
Total assets
|
$
|
52,994
|
$
|
48,458
|
$
|
44,821
|
$
|
40,123
|
$
|
35,822
|
|||||
Long-term debt, excluding current maturities
|
$
|
18,013
|
$
|
16,300
|
$
|
13,833
|
$
|
11,280
|
$
|
9,591
|
|||||
SELECTED DATA OF FPL (millions):
|
|||||||||||||||
Operating revenues
|
$
|
10,485
|
$
|
11,491
|
$
|
11,649
|
$
|
11,622
|
$
|
11,988
|
|||||
Net income
|
$
|
945
|
$
|
831
|
$
|
789
|
$
|
836
|
$
|
802
|
|||||
Total assets
|
$
|
28,698
|
$
|
26,812
|
$
|
26,175
|
$
|
24,044
|
$
|
22,970
|
|||||
Long-term debt, excluding current maturities
|
$
|
6,682
|
$
|
5,794
|
$
|
5,311
|
$
|
4,976
|
$
|
4,214
|
|||||
Energy sales (kwh)
|
107,978
|
105,414
|
105,406
|
108,636
|
107,513
|
||||||||||
Energy sales:
|
|||||||||||||||
Residential
|
52.2
|
%
|
51.2
|
%
|
50.5
|
%
|
50.8
|
%
|
50.8
|
%
|
|||||
Commercial
|
41.3
|
42.7
|
43.2
|
42.3
|
41.4
|
||||||||||
Industrial
|
2.9
|
3.1
|
3.4
|
3.5
|
3.8
|
||||||||||
Interchange power sales
|
0.8
|
1.4
|
1.6
|
1.8
|
2.1
|
||||||||||
Other
(c)
|
2.8
|
1.6
|
1.3
|
1.6
|
1.9
|
||||||||||
Total
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Approximate 60-minute peak load (mw):
(d)
|
|||||||||||||||
Summer season
|
22,256
|
22,351
|
21,060
|
21,962
|
21,819
|
||||||||||
Winter season
|
21,153
|
24,346
|
20,031
|
18,055
|
17,260
|
||||||||||
Average number of customer accounts (thousands):
|
|||||||||||||||
Residential
|
4,004
|
3,984
|
3,992
|
3,981
|
3,906
|
||||||||||
Commercial
|
504
|
501
|
501
|
493
|
479
|
||||||||||
Industrial
|
9
|
10
|
13
|
19
|
21
|
||||||||||
Other
|
3
|
4
|
4
|
4
|
4
|
||||||||||
Total
|
4,520
|
4,499
|
4,510
|
4,497
|
4,410
|
||||||||||
Average price billed to customers (cents per kwh)
|
9.34
|
11.19
|
10.96
|
10.63
|
11.14
|
(a)
|
Includes net unrealized mark-to-market gains or losses associated with non-qualifying hedges and other than temporary impairment losses.
|
(b)
|
Includes expenses related to a terminated merger, net unrealized mark-to-market gains associated with non-qualifying hedges, impairment charges and an Indonesian project gain.
|
(c)
|
Includes the net change in unbilled sales.
|
(d)
|
Winter season includes November and December of the current year and January to March of the following year (for 2010, through February 24, 2011).
|
·
|
Subject to the provisions of the 2010 rate agreement, retail base rates will be effectively frozen through the end of 2012.
|
·
|
Incremental cost recovery through FPL’s capacity clause for WCEC Unit No. 3, which is expected to be placed in service by mid-2011, will be permitted up to the amount of the projected fuel savings for customers during the term of the 2010 rate agreement. See Item 1 - FPL Operations - Fossil Operations.
|
·
|
Future storm restoration costs would be recoverable on an accelerated basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $4 for every 1,000 kwh of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge for the amount above $800 million.
|
·
|
If FPL's earned regulatory ROE falls below 9%, FPL may seek retail base rate relief. If FPL's earned regulatory ROE rises above 11%, any party to the 2010 rate agreement may seek a reduction in FPL’s retail base rates. In determining the regulatory ROE for all purposes under the 2010 rate agreement, earnings will be calculated on an actual, non-weather-adjusted basis.
|
·
|
FPL can vary the amount of surplus depreciation credit taken in any calendar year up to a cap in 2010 of $267 million, a cap in subsequent years of $267 million plus the amount of any unused portion from prior years, and a cap of $776 million (surplus depreciation credit cap) over the course of the 2010 rate agreement, provided that in any year of the 2010 rate agreement, including 2010, FPL must use at least enough surplus depreciation credit to maintain a 9% earned regulatory ROE but may not use any amount of surplus depreciation credit that would result in an earned regulatory ROE in excess of 11%. As of December 31, 2010, approximately $772 million of the surplus depreciation credit cap remains.
|
Years Ended December 31,
|
||||||||
2010
|
2009
|
2008
|
||||||
(millions)
|
||||||||
FPL
|
$
|
945
|
$
|
831
|
$
|
789
|
||
NextEra Energy Resources
|
980
|
759
|
831
|
|||||
Corporate and Other
|
32
|
25
|
19
|
|||||
NextEra Energy Consolidated
|
$
|
1,957
|
$
|
1,615
|
$
|
1,639
|
Years Ended December 31,
|
|||||||||
2010
|
2009
|
2008
|
|||||||
(millions)
|
|||||||||
Net unrealized mark-to-market after-tax gains (losses) from non-qualifying hedge activity
|
$
|
176
|
$
|
(20
|
)
|
$
|
170
|
||
OTTI after-tax losses on securities held in nuclear decommissioning funds
|
$
|
(9
|
)
|
$
|
(36
|
)
|
$
|
(82
|
)
|
OTTI after-tax reversals
|
$
|
13
|
$
|
23
|
$
|
6
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
(millions)
|
||||||||||||
Retail base
|
$ | 4,190 | $ | 3,828 | $ | 3,738 | ||||||
Fuel cost recovery
|
4,090 | 5,982 | 6,202 | |||||||||
Net repayment of previously deferred retail fuel revenues
|
356 | - | - | |||||||||
Net deferral of retail fuel revenues
|
- | (356 | ) | - | ||||||||
Other cost recovery clauses and pass-through costs, net of any deferrals
|
1,638 | 1,840 | 1,505 | |||||||||
Other, primarily pole attachment rentals, transmission and wholesale sales and customer-related fees
|
211 | 197 | 204 | |||||||||
Total
|
$ | 10,485 | $ | 11,491 | $ | 11,649 |
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
(millions)
|
||||||||||||
Fuel and energy charges during the period
|
$ | 4,714 | $ | 5,425 | $ | 6,289 | ||||||
Net collection of previously deferred retail fuel costs
|
- | 256 | - | |||||||||
Net deferral of retail fuel costs
|
(276 | ) | - | (55 | ) | |||||||
Other, primarily capacity charges, net of any capacity deferral
|
544 | 539 | 515 | |||||||||
Total
|
$ | 4,982 | $ | 6,220 | $ | 6,749 |
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
(millions)
|
||||||||||||
$125 million annual reduction under the 2005 rate agreement
|
$ | - | $ | (125 | ) | $ | (125 | ) | ||||
Surplus depreciation credit recorded under the 2010 rate agreement
|
(4 | ) | - | - | ||||||||
Other depreciation and amortization recovered under base rates
|
891 | 942 | 908 | |||||||||
Depreciation and amortization recovered under cost recovery clauses
|
121 | 280 | 77 | |||||||||
Total
|
$ | 1,008 | $ | 1,097 | $ | 860 |
Increase (Decrease)
From Prior Period
|
||||||||
Years Ended
December 31,
|
||||||||
2010
|
2009
|
|||||||
(millions)
|
||||||||
New investments
(a)
|
$ | 45 | $ | 173 | ||||
Existing assets
(a)
|
54 | (213 | ) | |||||
Gas infrastructure
|
23 | 3 | ||||||
Customer supply and proprietary power and gas trading businesses
|
(25 | ) | 120 | |||||
Asset sales
|
7 | 6 | ||||||
Interest expense, differential membership costs and other
|
(96 | ) | (34 | ) | ||||
Change in unrealized mark-to-market non-qualifying hedge activity
(b)(c)
|
196 | (190 | ) | |||||
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals
(c)
|
17 | 63 | ||||||
Net income increase (decrease)
|
$ | 221 | $ | (72 | ) |
(a)
|
Includes PTCs and ITCs on wind projects and ITCs on solar projects and, for new investments, deferred tax benefits associated with convertible ITCs (see Note 1 - Electric Plant, Depreciation and Amortization, Note 1 - Income Taxes and Note 6) but does not include allocation of interest expense or corporate general and administrative expenses. Results from new projects are included in new investments during the first twelve months of operation. A project's results are included in existing assets beginning with the thirteenth month of operation.
|
(b)
|
See Note 3 and discussion above related to derivative instruments.
|
(c)
|
See table in Summary above for additional detail.
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
(millions)
|
||||||||||||
Interest expense, net of allocations to NextEra Energy Resources
|
$ | (63 | ) | $ | (43 | ) | $ | (38 | ) | |||
Interest income
|
43 | 34 | 22 | |||||||||
Federal and state income tax benefits
|
35 | - | 18 | |||||||||
Other
|
17 | 34 | 17 | |||||||||
Net income
|
$ | 32 | $ | 25 | $ | 19 |
Maturity Date
|
|||||||||||||||||
FPL
|
Capital
Holdings
|
NextEra
Energy
Consoli-
dated
|
FPL
|
Capital
Holdings
|
|||||||||||||
(millions)
|
|||||||||||||||||
Bank revolving line of credit facilities
(a)
|
$ | 2,973 | $ | 4,417 | $ | 7,390 |
(b)
|
(b)
|
|||||||||
Less letters of credit
|
(8 | ) | (771 | ) | (779 | ) | |||||||||||
2,965 | 3,646 | 6,611 | |||||||||||||||
Revolving credit facility
|
250 | - | 250 | 2014 | |||||||||||||
Less borrowings
|
- | - | - | ||||||||||||||
250 | - | 250 | |||||||||||||||
Subtotal
|
3,215 | 3,646 | 6,861 | ||||||||||||||
Cash and cash equivalents
|
20 | 282 | 302 | ||||||||||||||
Less commercial paper
|
(101 | ) | (788 | ) | (889 | ) | |||||||||||
Net available liquidity
|
$ | 3,134 | $ | 3,140 | $ | 6,274 |
(a)
|
Provide for the funding of loans up to $7,390 million ($2,973 million for FPL) and the issuance of letters of credit up to $6,390 million ($2,473 million for FPL). The entire amount of the credit facilities is available for general corporate purposes, including to provide back-up liquidity for FPL's and Capital Holdings' commercial paper programs and other short-term borrowings and to provide additional liquidity in the event of a loss to the companies' or their subsidiaries' operating facilities (including, in the case of FPL, a transmission and distribution property loss). FPL's bank revolving line of credit facilities are also available to support the purchase of $633 million of pollution control, solid waste disposal and industrial development revenue bonds (tax exempt bonds) in the event they are tendered by individual bond holders and not remarketed prior to maturity.
|
(b)
|
$17 million of FPL's and $40 million of Capital Holdings' bank revolving line of credit facilities expire in 2012. The remaining portion of bank revolving line of credit facilities for FPL and Capital Holdings expires in 2013.
|
Moody's
(a)
|
S&P
(a)
|
Fitch
(a)
|
|||
NextEra Energy:
(b)
|
|||||
Corporate credit rating
|
Baa1
|
A-
|
A-
|
||
FPL:
(b)
|
|||||
Corporate credit rating
|
A2
|
A-
|
A
|
||
First mortgage bonds
|
Aa3
|
A
|
AA-
|
||
Pollution control, solid waste disposal and industrial development revenue bonds
|
VMIG-1
|
A
|
A+
|
||
Commercial paper
|
P-1
|
A-2
|
F1
|
||
Capital Holdings:
(b)
|
|||||
Corporate credit rating
|
Baa1
|
A-
|
A-
|
||
Debentures
|
Baa1
|
BBB+
|
A-
|
||
Junior subordinated debentures
|
Baa2
|
BBB
|
BBB
|
||
Commercial paper
|
P-2
|
A-2
|
F1
|
(a)
|
A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating organization.
|
(b)
|
The outlook indicated by Moody's, S&P and Fitch is stable, stable and negative, respectively.
|
NextEra Energy
|
FPL
|
|||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||||||||
(millions)
|
||||||||||||||||||||||||
Net cash provided by operating activities
|
$ | 3,834 | $ | 4,463 | $ | 3,403 | $ | 1,934 | $ | 2,871 | $ | 2,180 | ||||||||||||
Net cash used in investing activities
|
(5,284 | ) | (5,935 | ) | (5,808 | ) | (2,561 | ) | (2,726 | ) | (2,427 | ) | ||||||||||||
Net cash provided by (used in) financing activities
|
1,514 | 1,175 | 2,650 | 564 | (182 | ) | 304 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
$ | 64 | $ | (297 | ) | $ | 245 | $ | (63 | ) | $ | (37 | ) | $ | 57 |
Date Issued
|
Company
|
Debt Issuances/Borrowings
|
Interest
Rate
|
Principal
Amount
|
Maturity
Date
|
||||||
(millions)
|
|||||||||||
February 2010
|
FPL
|
First mortgage bonds
|
5.69%
|
$
|
500
|
2040
|
|||||
March 2010
|
NextEra Energy Resources subsidiary
|
Senior secured limited recourse notes
|
6.56%
|
305
|
2030
|
||||||
April 2010
|
Capital Holdings
|
Term loan
|
Variable
|
(a)
|
100
|
2013
|
|||||
April 2010
|
Capital Holdings
|
Term loan
|
Variable
|
(a)
|
100
|
2013
|
|||||
April 2010
|
NextEra Energy Resources subsidiary
|
Senior secured limited recourse term loan
|
Variable
|
(a)(b)
|
255
|
2027
|
|||||
May 2010
|
Capital Holdings
|
Debentures
|
2.55%
|
(b)
|
250
|
2013
|
|||||
June 2010
|
NextEra Energy Resources subsidiary
|
Limited recourse term loan
|
Variable
|
(a)
|
78
|
2015
|
|||||
August 2010
|
Capital Holdings
|
Debentures
|
2.60%
|
(b)
|
400
|
2015
|
|||||
September 2010
|
Capital Holdings
|
Term loan
|
Variable
|
(a)
|
50
|
2013
|
|||||
September 2010
|
Capital Holdings
|
Debentures related to NextEra Energy's equity units
|
1.90%
|
403
|
2015
|
||||||
September 2010
|
Capital Holdings
|
Japanese yen denominated senior notes
|
5.1325%
|
(c)
|
120
|
(c)
|
2030
|
||||
September 2010
|
NextEra Energy Resources subsidiary
|
Senior secured limited recourse term loan
|
Variable
|
(a)(b)
|
297
|
2028
|
|||||
September 2010
|
Capital Holdings
|
Term loan
|
Variable
|
(a)
|
50
|
2013
|
|||||
September 2010
|
Capital Holdings
|
Term loan
|
Variable
|
(a)
|
110
|
2014
|
|||||
December 2010
|
FPL
|
First mortgage bonds
|
5.25%
|
400
|
2041
|
||||||
December 2010
|
NextEra Energy Resources subsidiary
|
Canadian revolving credit facility
|
Variable
|
(a)
|
82
|
2013
|
|||||
December 2010
|
NextEra Energy Resources subsidiary
|
Senior secured limited recourse term loan
|
Variable
|
(a)(b)
|
231
|
2018
|
|||||
$
|
3,731
|
(a)
|
Variable rate is based on an underlying index plus a margin.
|
(b)
|
Interest rate swap agreements were entered into with respect to these issuances.
|
(c)
|
Reflects a currency swap agreement entered into with respect to both interest and principal payments on this issuance.
|
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
|||||||||||||||
(millions)
|
|||||||||||||||||||||
Long-term debt, including interest:
(a)
|
|||||||||||||||||||||
FPL
|
$
|
389
|
$
|
391
|
$
|
782
|
$
|
373
|
$
|
374
|
$
|
12,143
|
(b)
|
$
|
14,452
|
||||||
NextEra Energy Resources
|
709
|
715
|
839
|
579
|
677
|
4,220
|
7,739
|
||||||||||||||
Corporate and Other
|
1,885
|
719
|
1,157
|
881
|
1,605
|
12,417
|
18,664
|
||||||||||||||
Purchase obligations:
|
|||||||||||||||||||||
FPL
(c)
|
6,190
|
5,330
|
3,390
|
2,890
|
2,645
|
10,270
|
30,715
|
||||||||||||||
NextEra Energy Resources
(d)
|
1,175
|
225
|
175
|
160
|
160
|
725
|
2,620
|
||||||||||||||
Asset retirement activities:
(e)
|
|||||||||||||||||||||
FPL
(f)
|
-
|
-
|
-
|
-
|
-
|
7,106
|
7,106
|
||||||||||||||
NextEra Energy Resources
(g)
|
2
|
2
|
-
|
-
|
-
|
9,736
|
9,740
|
||||||||||||||
Other Commitments:
|
|||||||||||||||||||||
NextEra Energy Resources
(h)
|
14
|
5
|
72
|
73
|
98
|
490
|
752
|
||||||||||||||
Total
|
$
|
10,364
|
$
|
7,387
|
$
|
6,415
|
$
|
4,956
|
$
|
5,559
|
$
|
57,107
|
$
|
91,788
|
(a)
|
Includes principal, interest and interest rate swaps. Variable rate interest was computed using December 31, 2010 rates.
|
(b)
|
Includes $633 million of tax exempt bonds that permit individual bond holders to tender the bonds for purchase at any time prior to maturity. In the event bonds are tendered for purchase, they would be remarketed by a designated remarketing agent in accordance with the related indenture. If the remarketing is unsuccessful, FPL would be required to purchase the tax exempt bonds. As of December 31, 2010, all tax exempt bonds tendered for purchase have been successfully remarketed. FPL's bank revolving line of credit facilities are available to support the purchase of tax exempt bonds.
|
(c)
|
Represents required capacity and minimum payments under long-term purchased power and fuel contracts (see Note 14 - Contracts), and projected capital expenditures through 2015 (see Note 14 - Commitments).
|
(d)
|
Represents firm commitments primarily in connection with construction activities, and fuel-related and transmission service contracts. See Note 14 - Commitments and Contracts.
|
(e)
|
Represents expected cash payments adjusted for inflation for estimated costs to perform asset retirement activities.
|
(f)
|
At December 31, 2010, FPL had approximately $2,512 million in restricted funds for the payment of future expenditures to decommission FPL's nuclear units, which are included in NextEra Energy's and FPL's special use funds. See Note 13.
|
(g)
|
At December 31, 2010, NextEra Energy Resources' 88.23% portion of Seabrook's and 70% portion of Duane Arnold's and its Point Beach's restricted funds for the payment of future expenditures to decommission its nuclear units totaled approximately $1,105 million and are included in NextEra Energy's special use funds. See Note 13.
|
(h)
|
Represents estimated cash distributions related to membership interests and payments related to the acquisition of certain development rights. For further discussion of membership interests, see Note 1 - Sale of Differential Membership Interests.
|
Decrease in 2010
Net Periodic Benefit Income
|
|||||||||||
Change in
Assumption
|
NextEra Energy
|
FPL
|
|||||||||
(millions)
|
|||||||||||
Expected long-term rate of return
|
(0.5
|
)
|
%
|
$
|
16
|
$
|
11
|
||||
Discount rate
|
(0.5
|
)
|
%
|
$
|
-
|
$
|
-
|
||||
Salary increase
|
0.5
|
%
|
$
|
2
|
$
|
1
|
|||||
Health care cost trend rate
(a)
|
1.0
|
%
|
$
|
1
|
$
|
1
|
(a)
|
Assumed health care cost trend rates can have a significant effect on the amounts reported for postretirement plans providing health care benefits. However, this effect is somewhat mitigated by the retiree cost sharing structure incorporated in NextEra Energy's other benefits plan.
|
FPL
|
||||||||||||||||||||||||||||||
Nuclear
Decommissioning
|
Fossil/Solar
Dismantlement
|
Interim Removal
Costs and Other
|
NextEra Energy
Resources
|
NextEra Energy
|
||||||||||||||||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||
AROs
|
$
|
1,057
|
$
|
1,807
|
$
|
23
|
$
|
23
|
$
|
3
|
$
|
3
|
$
|
556
|
$
|
585
|
$
|
1,639
|
$
|
2,418
|
||||||||||
Less capitalized ARO asset net of accumulated depreciation
|
-
|
50
|
4
|
5
|
-
|
-
|
-
|
-
|
4
|
55
|
||||||||||||||||||||
Accrued asset removal costs
(a)
|
207
|
196
|
336
|
318
|
1,701
|
1,737
|
-
|
-
|
2,244
|
2,251
|
||||||||||||||||||||
Asset retirement obligation regulatory expense difference
(a)
|
1,571
|
644
|
22
|
28
|
(1
|
)
|
(1
|
)
|
-
|
-
|
1,592
|
671
|
||||||||||||||||||
Accrued decommissioning, dismantlement and other accrued asset removal costs
|
$
|
2,835
|
(b)
|
$
|
2,597
|
(b)
|
$
|
377
|
(b)
|
$
|
364
|
(b)
|
$
|
1,703
|
(b)
|
$
|
1,739
|
(b)
|
$
|
556
|
$
|
585
|
$
|
5,471
|
$
|
5,285
|
(a)
|
Regulatory liability on NextEra Energy's and FPL's consolidated balance sheets.
|
(b)
|
Represents total amount accrued for ratemaking purposes.
|
NextEra Energy
|
FPL
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Regulatory assets:
|
(millions)
|
|||||||||||||||
Current:
|
||||||||||||||||
Deferred clause and franchise expenses
|
$ | 368 | $ | 69 | $ | 368 | $ | 69 | ||||||||
Derivatives
|
$ | 236 | $ | 68 | $ | 236 | $ | 68 | ||||||||
Other
|
$ | 82 | $ | 72 | $ | 76 | $ | 69 | ||||||||
Noncurrent:
|
||||||||||||||||
Securitized storm-recovery costs
|
$ | 581 | $ | 644 | $ | 581 | $ | 644 | ||||||||
Other
|
$ | 329 | $ | 265 | $ | 293 | $ | 214 | ||||||||
Regulatory liabilities:
|
||||||||||||||||
Current:
|
||||||||||||||||
Deferred clause and franchise revenues
|
$ | 47 | $ | 377 | $ | 47 | $ | 377 | ||||||||
Other
|
$ | 4 | $ | 2 | $ | - | $ | - | ||||||||
Noncurrent:
|
||||||||||||||||
Accrued asset removal costs
|
$ | 2,244 | $ | 2,251 | $ | 2,244 | $ | 2,251 | ||||||||
Asset retirement obligation regulatory expense difference
|
$ | 1,592 | $ | 671 | $ | 1,592 | $ | 671 | ||||||||
Other
|
$ | 423 | $ | 260 | $ | 377 | $ | 244 |
Hedges on Owned Assets
|
||||||||||||||||||||
Trading
|
Non-
Qualifying
|
OCI
|
FPL Cost
Recovery
Clauses
|
NextEra
Energy
Total
|
||||||||||||||||
(millions)
|
||||||||||||||||||||
Fair value of contracts outstanding at December 31, 2008
|
$ | 56 | $ | 143 | $ | 114 | $ | (1,108 | ) | $ | (795 | ) | ||||||||
Reclassification to realized at settlement of contracts
|
(160 | ) | (208 | ) | (180 | ) | 1,734 | 1,186 | ||||||||||||
Effective portion of changes in fair value recorded in OCI
|
- | - | 197 | - | 197 | |||||||||||||||
Ineffective portion of changes in fair value recorded in earnings
|
- | 28 | - | - | 28 | |||||||||||||||
Changes in fair value excluding reclassification to realized
|
143 | 163 | - | (690 | ) | (384 | ) | |||||||||||||
Fair value of contracts outstanding at December 31, 2009
|
39 | 126 | 131 | (64 | ) | 232 | ||||||||||||||
Reclassification to realized at settlement of contracts
|
(98 | ) | (126 | ) | (102 | ) | 492 | 166 | ||||||||||||
Inception value of new contracts
|
108 | (45 | ) | - | - | 63 | ||||||||||||||
Effective portion of changes in fair value recorded in OCI
|
- | - | 20 | - | 20 | |||||||||||||||
Ineffective portion of changes in fair value recorded in earnings
|
- | 1 | - | - | 1 | |||||||||||||||
Changes in fair value excluding reclassification to realized
|
76 | 457 | - | (664 | ) | (131 | ) | |||||||||||||
Fair value of contracts outstanding at December 31, 2010
|
125 | 413 | 49 | (236 | ) | 351 | ||||||||||||||
Net option premium payments (receipts)
|
(101 | ) | 9 | - | - | (92 | ) | |||||||||||||
Net margin cash collateral paid
|
29 | |||||||||||||||||||
Total mark-to-market energy contract net assets (liabilities) at December 31, 2010
|
$ | 24 | $ | 422 | $ | 49 | $ | (236 | ) | $ | 288 |
December 31,
2010
|
||||
(millions)
|
||||
Current derivative assets
|
$
|
453
|
||
Noncurrent other assets
|
487
|
|||
Current derivative liabilities
|
(468
|
)
|
||
Noncurrent derivative liabilities
|
(184
|
)
|
||
NextEra Energy's total mark-to-market energy contract net assets
|
$
|
288
|
Maturity
|
|||||||||||||||||||||
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
|||||||||||||||
(millions)
|
|||||||||||||||||||||
Trading:
|
|||||||||||||||||||||
Quoted prices in active markets for identical assets
|
$
|
8
|
$
|
(31
|
)
|
$
|
(42
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(65
|
)
|
||||
Significant other observable inputs
|
(127
|
)
|
(30
|
)
|
27
|
2
|
3
|
4
|
(121
|
)
|
|||||||||||
Significant unobservable inputs
|
146
|
40
|
26
|
(2
|
)
|
-
|
-
|
210
|
|||||||||||||
Total
|
27
|
(21
|
)
|
11
|
-
|
3
|
4
|
24
|
|||||||||||||
Owned Assets - Non-Qualifying:
|
|||||||||||||||||||||
Quoted prices in active markets for identical assets
|
(27
|
)
|
(18
|
)
|
(1
|
)
|
-
|
-
|
-
|
(46
|
)
|
||||||||||
Significant other observable inputs
|
156
|
118
|
29
|
22
|
26
|
38
|
389
|
||||||||||||||
Significant unobservable inputs
|
26
|
27
|
12
|
7
|
8
|
(1
|
)
|
79
|
|||||||||||||
Total
|
155
|
127
|
40
|
29
|
34
|
37
|
422
|
||||||||||||||
Owned Assets - OCI:
|
|||||||||||||||||||||
Quoted prices in active markets for identical assets
|
30
|
15
|
-
|
-
|
-
|
-
|
45
|
||||||||||||||
Significant other observable inputs
|
11
|
(7
|
)
|
-
|
-
|
-
|
-
|
4
|
|||||||||||||
Significant unobservable inputs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Total
|
41
|
8
|
-
|
-
|
-
|
-
|
49
|
||||||||||||||
Owned Assets - FPL Cost Recovery Clauses:
|
|||||||||||||||||||||
Quoted prices in active markets for identical assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Significant other observable inputs
|
(243
|
)
|
-
|
-
|
-
|
-
|
-
|
(243
|
)
|
||||||||||||
Significant unobservable inputs
|
7
|
-
|
-
|
-
|
-
|
-
|
7
|
||||||||||||||
Total
|
(236
|
)
|
-
|
-
|
-
|
-
|
-
|
(236
|
)
|
||||||||||||
Total sources of fair value
|
$
|
(13
|
)
|
$
|
114
|
$
|
51
|
$
|
29
|
$
|
37
|
$
|
41
|
$
|
259
|
Trading
|
Non-Qualifying Hedges
and Hedges in OCI and
FPL Cost Recovery Clauses
(a)
|
Total
|
|||||||||||||||||||||||||||
FPL
|
NextEra
Energy
Resources
|
NextEra Energy
|
FPL
|
NextEra
Energy
Resources
|
NextEra Energy
|
FPL
|
NextEra
Energy
Resources
|
NextEra Energy
|
|||||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||||||
December 31, 2009
|
$
|
-
|
$
|
2
|
$
|
2
|
$
|
61
|
$
|
51
|
$
|
25
|
$
|
61
|
$
|
51
|
$
|
25
|
|||||||||||
December 31, 2010
|
$
|
-
|
$
|
3
|
$
|
3
|
$
|
51
|
$
|
21
|
$
|
35
|
$
|
51
|
$
|
23
|
$
|
36
|
|||||||||||
Average for the period ended December 31, 2010
|
$
|
-
|
$
|
4
|
$
|
4
|
$
|
48
|
$
|
32
|
$
|
29
|
$
|
48
|
$
|
34
|
$
|
29
|
(a)
|
Non-qualifying hedges are employed to reduce the market risk exposure to physical assets or contracts which are not marked to market. The VaR figures for the non-qualifying hedges and hedges in OCI and FPL cost recovery clauses category do not represent the economic exposure to commodity price movements.
|
December 31, 2010
|
December 31, 2009
|
|||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||
(millions)
|
||||||||||||
NextEra Energy:
|
||||||||||||
Fixed income securities:
|
||||||||||||
Special use funds
|
$
|
1,701
|
$
|
1,701
|
(a)
|
$
|
1,685
|
$
|
1,685
|
(a)
|
||
Other investments
|
$
|
114
|
$
|
114
|
(a)
|
$
|
104
|
$
|
104
|
(a)
|
||
Long-term debt, including current maturities
|
$
|
19,929
|
$
|
20,756
|
(b)
|
$
|
16,869
|
$
|
17,256
|
(b)
|
||
Interest rate swaps - net unrealized losses
|
$
|
(16
|
)
|
$
|
(16
|
)
(c)
|
$
|
(17
|
)
|
$
|
(17
|
)
(c)
|
FPL:
|
||||||||||||
Fixed income securities - special use funds
|
$
|
1,375
|
$
|
1,375
|
(a)
|
$
|
1,384
|
$
|
1,384
|
(a)
|
||
Long-term debt, including current maturities
|
$
|
6,727
|
$
|
7,236
|
(b)
|
$
|
5,836
|
$
|
6,055
|
(b)
|
(a)
|
Based on quoted market prices for these or similar issues.
|
(b)
|
Based on market prices provided by external sources.
|
(c)
|
Based on market prices modeled internally.
|
(a)
|
Three-month London InterBank Offered Rate (LIBOR) plus 1.18896%.
|
(b)
|
Three-month LIBOR plus 0.4726%
|
(c)
|
Three-month LIBOR plus 0.7980%
|
(d)
|
Three-month LIBOR.
|
(e)
|
Six-month LIBOR.
|
(f)
|
Exchange of payments does not begin until December 2016, December 2016, May 2017, December 2019, June 2011, September 2011 and June 2013, respectively.
|
(g)
|
Three-month Banker's Acceptance Rate.
|
·
|
Operations are primarily concentrated in the energy industry.
|
·
|
Trade receivables and other financial instruments are predominately with energy, utility and financial services related companies, as well as municipalities, cooperatives and other trading companies in the United States.
|
·
|
Overall credit risk is managed through established credit policies.
|
·
|
Prospective and existing customers are reviewed for creditworthiness based upon established standards, with customers not meeting minimum standards providing various credit enhancements or secured payment terms, such as letters of credit or the posting of margin cash collateral.
|
·
|
The use of master netting agreements to offset cash and non-cash gains and losses arising from derivative instruments with the same counterparty. NextEra Energy's policy is to have master netting agreements in place with significant counterparties.
|
LEWIS HAY, III
|
ARMANDO PIMENTEL, JR.
|
|
Lewis Hay, III
Chairman and Chief Executive Officer of NextEra Energy and Chairman of the Board of FPL
|
Armando Pimentel, Jr.
Executive Vice President, Finance and Chief
Financial Officer of NextEra Energy and FPL
|
ARMANDO J. OLIVERA
|
CHRIS N. FROGGATT
|
|
Armando J. Olivera
President and Chief Executive Officer of FPL
|
Chris N. Froggatt
Vice President, Controller and Chief Accounting Officer
of NextEra Energy
|
KIMBERLY OUSDAHL
|
||
Kimberly Ousdahl
Vice President, Controller and Chief Accounting Officer of FPL
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
OPERATING REVENUES
|
$ | 15,317 | $ | 15,643 | $ | 16,410 | ||||||
OPERATING EXPENSES
|
||||||||||||
Fuel, purchased power and interchange
|
6,242 | 7,405 | 8,412 | |||||||||
Other operations and maintenance
|
2,877 | 2,649 | 2,527 | |||||||||
Depreciation and amortization
|
1,807 | 1,765 | 1,442 | |||||||||
Taxes other than income taxes and other
|
1,148 | 1,230 | 1,204 | |||||||||
Total operating expenses
|
12,074 | 13,049 | 13,585 | |||||||||
OPERATING INCOME
|
3,243 | 2,594 | 2,825 | |||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||
Interest expense
|
(979 | ) | (849 | ) | (813 | ) | ||||||
Equity in earnings of equity method investees
|
58 | 52 | 93 | |||||||||
Allowance for equity funds used during construction
|
37 | 53 | 35 | |||||||||
Interest income
|
91 | 78 | 72 | |||||||||
Gains on disposal of assets - net
|
67 | 60 | 18 | |||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds
|
(16 | ) | (58 | ) | (148 | ) | ||||||
Other - net
|
(12 | ) | 12 | 7 | ||||||||
Total other deductions - net
|
(754 | ) | (652 | ) | (736 | ) | ||||||
INCOME BEFORE INCOME TAXES
|
2,489 | 1,942 | 2,089 | |||||||||
INCOME TAXES
|
532 | 327 | 450 | |||||||||
NET INCOME
|
$ | 1,957 | $ | 1,615 | $ | 1,639 | ||||||
Earnings per share of common stock:
|
||||||||||||
Basic
|
$ | 4.77 | $ | 3.99 | $ | 4.10 | ||||||
Assuming dilution
|
$ | 4.74 | $ | 3.97 | $ | 4.07 | ||||||
Dividends per share of common stock
|
$ | 2.00 | $ | 1.89 | $ | 1.78 | ||||||
Weighted-average number of common shares outstanding:
|
||||||||||||
Basic
|
410.3 | 404.4 | 400.1 | |||||||||
Assuming dilution
|
413.0 | 407.2 | 402.7 |
December 31,
|
||||||||
2010
|
2009
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric utility plant in service and other property
|
$ | 48,841 | $ | 46,330 | ||||
Nuclear fuel
|
1,539 | 1,414 | ||||||
Construction work in progress
|
3,841 | 2,425 | ||||||
Less accumulated depreciation and amortization
|
(15,146 | ) | (14,091 | ) | ||||
Total property, plant and equipment - net ($2,398 related to VIEs at December 31, 2010)
|
39,075 | 36,078 | ||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
302 | 238 | ||||||
Customer receivables, net of allowances of $20 and $23, respectively
|
1,509 | 1,431 | ||||||
Other receivables, net of allowances of $1 and $1, respectively
|
1,073 | 816 | ||||||
Materials, supplies and fossil fuel inventory
|
857 | 877 | ||||||
Regulatory assets:
|
||||||||
Deferred clause and franchise expenses
|
368 | 69 | ||||||
Derivatives
|
236 | 68 | ||||||
Other
|
82 | 72 | ||||||
Derivatives
|
506 | 357 | ||||||
Other
|
325 | 409 | ||||||
Total current assets
|
5,258 | 4,337 | ||||||
OTHER ASSETS
|
||||||||
Special use funds
|
3,742 | 3,390 | ||||||
Other investments
|
971 | 935 | ||||||
Prepaid benefit costs
|
1,259 | 1,184 | ||||||
Regulatory assets:
|
||||||||
Securitized storm-recovery costs ($356 related to a VIE at December 31, 2010)
|
581 | 644 | ||||||
Other
|
329 | 265 | ||||||
Other
|
1,779 | 1,625 | ||||||
Total other assets
|
8,661 | 8,043 | ||||||
TOTAL ASSETS
|
$ | 52,994 | $ | 48,458 | ||||
CAPITALIZATION
|
||||||||
Common stock
|
$ | 4 | $ | 4 | ||||
Additional paid-in capital
|
5,418 | 5,055 | ||||||
Retained earnings
|
8,873 | 7,739 | ||||||
Accumulated other comprehensive income
|
166 | 169 | ||||||
Total common shareholders' equity
|
14,461 | 12,967 | ||||||
Long-term debt ($1,338 related to VIEs at December 31, 2010)
|
18,013 | 16,300 | ||||||
Total capitalization
|
32,474 | 29,267 | ||||||
CURRENT LIABILITIES
|
||||||||
Commercial paper
|
889 | 2,020 | ||||||
Current maturities of long-term debt
|
1,920 | 569 | ||||||
Accounts payable
|
1,124 | 992 | ||||||
Customer deposits
|
634 | 613 | ||||||
Accrued interest and taxes
|
462 | 466 | ||||||
Regulatory liabilities:
|
||||||||
Deferred clause and franchise revenues
|
47 | 377 | ||||||
Other
|
4 | 2 | ||||||
Derivatives
|
536 | 221 | ||||||
Accrued construction-related expenditures
|
371 | 476 | ||||||
Other
|
917 | 713 | ||||||
Total current liabilities
|
6,904 | 6,449 | ||||||
OTHER LIABILITIES AND DEFERRED CREDITS
|
||||||||
Asset retirement obligations
|
1,639 | 2,418 | ||||||
Accumulated deferred income taxes
|
5,109 | 4,860 | ||||||
Regulatory liabilities:
|
||||||||
Accrued asset removal costs
|
2,244 | 2,251 | ||||||
Asset retirement obligation regulatory expense difference
|
1,592 | 671 | ||||||
Other
|
423 | 260 | ||||||
Derivatives
|
243 | 170 | ||||||
Deferral related to differential membership interests ($949 related to VIEs at December 31, 2010)
|
949 | 700 | ||||||
Other
|
1,417 | 1,412 | ||||||
Total other liabilities and deferred credits
|
13,616 | 12,742 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
TOTAL CAPITALIZATION AND LIABILITIES
|
$ | 52,994 | $ | 48,458 |
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net income
|
$ | 1,957 | $ | 1,615 | $ | 1,639 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
1,807 | 1,765 | 1,442 | |||||||||
Nuclear fuel amortization
|
285 | 239 | 201 | |||||||||
Unrealized (gains) losses on marked to market energy contracts
|
(386 | ) | 59 | (337 | ) | |||||||
Deferred income taxes
|
511 | 273 | 569 | |||||||||
Cost recovery clauses and franchise fees
|
(629 | ) | 624 | (111 | ) | |||||||
Changes in prepaid option premiums and derivative settlements
|
86 | (11 | ) | (12 | ) | |||||||
Equity in earnings of equity method investees
|
(58 | ) | (52 | ) | (93 | ) | ||||||
Distributions of earnings from equity method investees
|
74 | 69 | 124 | |||||||||
Allowance for equity funds used during construction
|
(37 | ) | (53 | ) | (35 | ) | ||||||
Gains on disposal of assets - net
|
(67 | ) | (60 | ) | (18 | ) | ||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds
|
16 | 58 | 148 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Customer receivables
|
(73 | ) | 18 | 49 | ||||||||
Other receivables
|
(29 | ) | (13 | ) | (26 | ) | ||||||
Materials, supplies and fossil fuel inventory
|
22 | 85 | (106 | ) | ||||||||
Other current assets
|
(52 | ) | 9 | (31 | ) | |||||||
Other assets
|
42 | (103 | ) | (166 | ) | |||||||
Accounts payable
|
179 | (86 | ) | (120 | ) | |||||||
Customer deposits
|
21 | 38 | 37 | |||||||||
Margin cash collateral
|
61 | (110 | ) | 49 | ||||||||
Income taxes
|
56 | 8 | (17 | ) | ||||||||
Interest and other taxes
|
(3 | ) | 22 | 30 | ||||||||
Other current liabilities
|
76 | (45 | ) | 189 | ||||||||
Other liabilities
|
(63 | ) | (5 | ) | (61 | ) | ||||||
Other - net
|
38 | 119 | 59 | |||||||||
Net cash provided by operating activities
|
3,834 | 4,463 | 3,403 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Capital expenditures of FPL
|
(2,605 | ) | (2,522 | ) | (2,234 | ) | ||||||
Independent power and other investments of NextEra Energy Resources
|
(2,899 | ) | (3,068 | ) | (2,715 | ) | ||||||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
588 | 100 | - | |||||||||
Funds received from a spent fuel settlement
|
44 | 86 | - | |||||||||
Nuclear fuel purchases
|
(274 | ) | (362 | ) | (247 | ) | ||||||
Other capital expenditures
|
(68 | ) | (54 | ) | (40 | ) | ||||||
Proceeds from sale of securities in special use funds
|
6,726 | 4,592 | 2,235 | |||||||||
Purchases of securities in special use funds
|
(6,835 | ) | (4,710 | ) | (2,315 | ) | ||||||
Proceeds from sale of other securities
|
721 | 773 | 28 | |||||||||
Purchases of other securities
|
(714 | ) | (782 | ) | (84 | ) | ||||||
Funding of loan
|
- | - | (500 | ) | ||||||||
Other - net
|
32 | 12 | 64 | |||||||||
Net cash used in investing activities
|
(5,284 | ) | (5,935 | ) | (5,808 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Issuances of long-term debt
|
3,724 | 3,220 | 3,827 | |||||||||
Retirements of long-term debt
|
(769 | ) | (1,635 | ) | (1,358 | ) | ||||||
Proceeds from sale of differential membership interests
|
261 | - | - | |||||||||
Net change in short-term debt
|
(1,130 | ) | 154 | 848 | ||||||||
Issuances of common stock - net
|
308 | 198 | 41 | |||||||||
Dividends on common stock
|
(823 | ) | (766 | ) | (714 | ) | ||||||
Other - net
|
(57 | ) | 4 | 6 | ||||||||
Net cash provided by financing activities
|
1,514 | 1,175 | 2,650 | |||||||||
Net increase (decrease) in cash and cash equivalents
|
64 | (297 | ) | 245 | ||||||||
Cash and cash equivalents at beginning of year
|
238 | 535 | 290 | |||||||||
Cash and cash equivalents at end of year
|
$ | 302 | $ | 238 | $ | 535 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||||||
Cash paid for interest (net of amount capitalized)
|
$ | 916 | $ | 805 | $ | 764 | ||||||
Cash paid for income taxes - net
|
$ | 20 | $ | 61 | $ | 4 | ||||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
||||||||||||
Assumption of debt in connection with the purchase of independent power projects
|
$ | 35 | $ | - | $ | 31 | ||||||
Accrued property additions
|
$ | 545 | $ | 683 | $ | 448 |
Common Stock
(a)
|
Additional
Paid-In
Capital
|
Unearned
ESOP
Compensation
|
Accumulated
Other
Comprehensive
Income (Loss)
(b)
|
Retained
Earnings
|
Common
Shareholders'
Equity
|
|||||||||||||||||||||
Shares
|
Aggregate
Par Value
|
|||||||||||||||||||||||||
Balances, December 31, 2007
|
407
|
$
|
4
|
$
|
4,784
|
$
|
(114
|
)
|
$
|
116
|
$
|
5,945
|
$
|
10,735
|
||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
1,639
|
||||||||||||||||||||
Issuances of common stock, net of issuance cost of less than $1
|
1
|
-
|
38
|
4
|
-
|
-
|
||||||||||||||||||||
Exercise of stock options and other incentive plan activity
|
1
|
-
|
53
|
-
|
-
|
-
|
||||||||||||||||||||
Dividends on common stock
|
-
|
-
|
-
|
-
|
-
|
(714
|
)
|
|||||||||||||||||||
Earned compensation under ESOP
|
-
|
-
|
30
|
10
|
-
|
-
|
||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
40
|
-
|
||||||||||||||||||||
Defined benefit pension and other benefits plans
|
-
|
-
|
-
|
-
|
(167
|
)
|
-
|
|||||||||||||||||||
Implementation of new accounting rules
|
-
|
-
|
-
|
-
|
(2
|
)
|
15
|
|||||||||||||||||||
Balances, December 31, 2008
|
409
|
(c)
|
4
|
4,905
|
(100
|
)
|
(13
|
)
|
6,885
|
$
|
11,681
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
1,615
|
||||||||||||||||||||
Issuances of common stock, net of issuance cost of approximately $2
|
4
|
-
|
204
|
4
|
-
|
-
|
||||||||||||||||||||
Exercise of stock options and other incentive plan activity
|
1
|
-
|
56
|
-
|
-
|
-
|
||||||||||||||||||||
Dividends on common stock
|
-
|
-
|
-
|
-
|
-
|
(766
|
)
|
|||||||||||||||||||
Earned compensation under ESOP
|
-
|
-
|
30
|
11
|
-
|
-
|
||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
165
|
-
|
||||||||||||||||||||
Defined benefit pension and other benefits plans
|
-
|
-
|
-
|
-
|
22
|
-
|
||||||||||||||||||||
Premium on publicly-traded equity units known as Corporate Units
|
-
|
-
|
(47
|
)
|
-
|
-
|
-
|
|||||||||||||||||||
Unamortized issuance costs on publicly-traded equity units known as Corporate Units
|
-
|
-
|
(8
|
)
|
-
|
-
|
-
|
|||||||||||||||||||
Implementation of new accounting rules
|
-
|
-
|
-
|
-
|
(5
|
)
|
5
|
|||||||||||||||||||
Balances, December 31, 2009
|
414
|
(c)
|
4
|
5,140
|
(85
|
)
|
169
|
7,739
|
$
|
12,967
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
1,957
|
||||||||||||||||||||
Issuances of common stock, net of issuance cost of approximately $2
|
6
|
-
|
279
|
5
|
-
|
-
|
||||||||||||||||||||
Exercise of stock options and other incentive plan activity
|
1
|
-
|
107
|
-
|
-
|
-
|
||||||||||||||||||||
Dividends on common stock
|
-
|
-
|
-
|
-
|
-
|
(823
|
)
|
|||||||||||||||||||
Earned compensation under ESOP
|
-
|
-
|
26
|
11
|
-
|
-
|
||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
(5
|
)
|
-
|
|||||||||||||||||||
Defined benefit pension and other benefits plans
|
-
|
-
|
-
|
-
|
2
|
-
|
||||||||||||||||||||
Premium on publicly-traded equity units known as Corporate Units
|
-
|
-
|
(59
|
)
|
-
|
-
|
-
|
|||||||||||||||||||
Unamortized issuance costs on publicly-traded equity units known as Corporate Units
|
-
|
-
|
(6
|
)
|
-
|
-
|
-
|
|||||||||||||||||||
Balances, December 31, 2010
|
421
|
(c)
|
$
|
4
|
$
|
5,487
|
$
|
(69
|
)
|
$
|
166
|
$
|
8,873
|
$
|
14,461
|
(a)
|
$0.01 par value, authorized - 800,000,000 shares; outstanding shares 420,861,536, 413,622,436 and 408,915,305 at December 31, 2010, 2009 and 2008, respectively.
|
(b)
|
Comprehensive income, which includes net income and other comprehensive income (loss), totaled approximately $1,954 million, $1,802 million and $1,512 million for 2010, 2009 and 2008, respectively.
|
(c)
|
Outstanding and unallocated shares held by the Employee Stock Ownership Plan (ESOP) Trust totaled approximately 5 million, 6 million and 7 million at December 31, 2010, 2009 and 2008, respectively; the original number of shares purchased and held by the ESOP Trust was approximately 25 million shares.
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
OPERATING REVENUES
|
$ | 10,485 | $ | 11,491 | $ | 11,649 | ||||||
OPERATING EXPENSES
|
||||||||||||
Fuel, purchased power and interchange
|
4,982 | 6,220 | 6,749 | |||||||||
Other operations and maintenance
|
1,620 | 1,496 | 1,438 | |||||||||
Depreciation and amortization
|
1,008 | 1,097 | 860 | |||||||||
Taxes other than income taxes and other
|
1,026 | 1,097 | 1,073 | |||||||||
Total operating expenses
|
8,636 | 9,910 | 10,120 | |||||||||
OPERATING INCOME
|
1,849 | 1,581 | 1,529 | |||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||
Interest expense
|
(361 | ) | (318 | ) | (334 | ) | ||||||
Allowance for equity funds used during construction
|
36 | 53 | 35 | |||||||||
Other - net
|
1 | (12 | ) | 2 | ||||||||
Total other deductions - net
|
(324 | ) | (277 | ) | (297 | ) | ||||||
INCOME BEFORE INCOME TAXES
|
1,525 | 1,304 | 1,232 | |||||||||
INCOME TAXES
|
580 | 473 | 443 | |||||||||
NET INCOME
|
$ | 945 | $ | 831 | $ | 789 |
December 31,
|
||||||||
2010
|
2009
|
|||||||
ELECTRIC UTILITY PLANT
|
||||||||
Plant in service
|
$ | 29,519 | $ | 28,677 | ||||
Nuclear fuel
|
729 | 756 | ||||||
Construction work in progress
|
2,175 | 1,549 | ||||||
Less accumulated depreciation and amortization
|
(10,871 | ) | (10,578 | ) | ||||
Electric utility plant - net
|
21,552 | 20,404 | ||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
20 | 83 | ||||||
Customer receivables, net of allowances of $17 and $21, respectively
|
710 | 838 | ||||||
Other receivables, net of allowances of $1 and $1, respectively
|
395 | 182 | ||||||
Materials, supplies and fossil fuel inventory
|
505 | 529 | ||||||
Regulatory assets:
|
||||||||
Deferred clause and franchise expenses
|
368 | 69 | ||||||
Derivatives
|
236 | 68 | ||||||
Other
|
76 | 69 | ||||||
Other
|
145 | 123 | ||||||
Total current assets
|
2,455 | 1,961 | ||||||
OTHER ASSETS
|
||||||||
Special use funds
|
2,637 | 2,408 | ||||||
Prepaid benefit costs
|
1,035 | 1,017 | ||||||
Regulatory assets:
|
||||||||
Securitized storm-recovery costs ($356 related to a VIE at December 31, 2010)
|
581 | 644 | ||||||
Other
|
293 | 214 | ||||||
Other
|
145 | 164 | ||||||
Total other assets
|
4,691 | 4,447 | ||||||
TOTAL ASSETS
|
$ | 28,698 | $ | 26,812 | ||||
CAPITALIZATION
|
||||||||
Common stock
|
$ | 1,373 | $ | 1,373 | ||||
Additional paid-in capital
|
5,054 | 4,393 | ||||||
Retained earnings
|
3,364 | 2,670 | ||||||
Total common shareholder's equity
|
9,791 | 8,436 | ||||||
Long-term debt ($486 related to a VIE at December 31, 2010)
|
6,682 | 5,794 | ||||||
Total capitalization
|
16,473 | 14,230 | ||||||
CURRENT LIABILITIES
|
||||||||
Commercial paper
|
101 | 818 | ||||||
Current maturities of long-term debt
|
45 | 42 | ||||||
Accounts payable
|
554 | 539 | ||||||
Customer deposits
|
628 | 607 | ||||||
Accrued interest and taxes
|
311 | 303 | ||||||
Regulatory liabilities - deferred clause and franchise revenues
|
47 | 377 | ||||||
Derivatives
|
245 | 77 | ||||||
Accrued construction-related expenditures
|
183 | 296 | ||||||
Other
|
394 | 363 | ||||||
Total current liabilities
|
2,508 | 3,422 | ||||||
OTHER LIABILITIES AND DEFERRED CREDITS
|
||||||||
Asset retirement obligations
|
1,083 | 1,833 | ||||||
Accumulated deferred income taxes
|
3,835 | 3,509 | ||||||
Regulatory liabilities:
|
||||||||
Accrued asset removal costs
|
2,244 | 2,251 | ||||||
Asset retirement obligation regulatory expense difference
|
1,592 | 671 | ||||||
Other
|
377 | 244 | ||||||
Other
|
586 | 652 | ||||||
Total other liabilities and deferred credits
|
9,717 | 9,160 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
TOTAL CAPITALIZATION AND LIABILITIES
|
$ | 28,698 | $ | 26,812 |
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net income
|
$ | 945 | $ | 831 | $ | 789 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
1,008 | 1,097 | 860 | |||||||||
Nuclear fuel amortization
|
137 | 127 | 106 | |||||||||
Deferred income taxes
|
419 | 391 | 307 | |||||||||
Cost recovery clauses and franchise fees
|
(629 | ) | 624 | (111 | ) | |||||||
Allowance for equity funds used during construction
|
(36 | ) | (53 | ) | (35 | ) | ||||||
Changes in operating assets and liabilities:
|
||||||||||||
Customer receivables
|
127 | (42 | ) | 11 | ||||||||
Other receivables
|
(43 | ) | 42 | (11 | ) | |||||||
Materials, supplies and fossil fuel inventory
|
23 | 34 | 20 | |||||||||
Other current assets
|
(25 | ) | 6 | (19 | ) | |||||||
Other assets
|
40 | (62 | ) | (96 | ) | |||||||
Accounts payable
|
51 | (91 | ) | (71 | ) | |||||||
Customer deposits
|
22 | 37 | 39 | |||||||||
Income taxes
|
(129 | ) | (132 | ) | 175 | |||||||
Interest and other taxes
|
7 | 10 | 9 | |||||||||
Other current liabilities
|
22 | (33 | ) | 138 | ||||||||
Other liabilities
|
(21 | ) | 10 | (19 | ) | |||||||
Other - net
|
16 | 75 | 88 | |||||||||
Net cash provided by operating activities
|
1,934 | 2,871 | 2,180 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Capital expenditures
|
(2,605 | ) | (2,522 | ) | (2,234 | ) | ||||||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
161 | - | - | |||||||||
Funds received from a spent fuel settlement
|
32 | 71 | - | |||||||||
Nuclear fuel purchases
|
(101 | ) | (195 | ) | (133 | ) | ||||||
Proceeds from sale of securities in special use funds
|
5,079 | 3,270 | 1,454 | |||||||||
Purchases of securities in special use funds
|
(5,160 | ) | (3,349 | ) | (1,512 | ) | ||||||
Other - net
|
33 | (1 | ) | (2 | ) | |||||||
Net cash used in investing activities
|
(2,561 | ) | (2,726 | ) | (2,427 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Issuances of long-term debt
|
924 | 516 | 589 | |||||||||
Retirements of long-term debt
|
(42 | ) | (263 | ) | (241 | ) | ||||||
Net change in short-term debt
|
(717 | ) | 45 | (69 | ) | |||||||
Capital contribution from NextEra Energy
|
660 | - | 75 | |||||||||
Dividends
|
(250 | ) | (485 | ) | (50 | ) | ||||||
Other - net
|
(11 | ) | 5 | - | ||||||||
Net cash provided by (used in) financing activities
|
564 | (182 | ) | 304 | ||||||||
Net increase (decrease) in cash and cash equivalents
|
(63 | ) | (37 | ) | 57 | |||||||
Cash and cash equivalents at beginning of year
|
83 | 120 | 63 | |||||||||
Cash and cash equivalents at end of year
|
$ | 20 | $ | 83 | $ | 120 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||||||
Cash paid for interest (net of amount capitalized)
|
$ | 321 | $ | 305 | $ | 320 | ||||||
Cash paid (received) for income taxes - net
|
$ | 291 | $ | 232 | $ | (11 | ) | |||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
||||||||||||
Accrued property additions
|
$ | 275 | $ | 418 | $ | 315 |
Common
Stock
(b)
|
Additional
Paid-In Capital
|
Retained
Earnings
|
Common
Shareholder's
Equity
|
||||||||||||
Balances, December 31, 2007
|
$
|
1,373
|
$
|
4,318
|
$
|
1,584
|
$
|
7,275
|
|||||||
Net income
|
-
|
-
|
789
|
||||||||||||
Capital contributions from NextEra Energy
|
-
|
75
|
-
|
||||||||||||
Dividends to NextEra Energy
|
-
|
-
|
(50
|
)
|
|||||||||||
Balances, December 31, 2008
|
1,373
|
4,393
|
2,323
|
$
|
8,089
|
||||||||||
Net income
|
-
|
-
|
831
|
||||||||||||
Dividends to NextEra Energy
|
-
|
-
|
(485
|
)
|
|||||||||||
Other
|
-
|
-
|
1
|
||||||||||||
Balances, December 31, 2009
|
1,373
|
4,393
|
2,670
|
$
|
8,436
|
||||||||||
Net income
|
-
|
-
|
945
|
||||||||||||
Capital contributions from NextEra Energy
|
-
|
660
|
-
|
||||||||||||
Dividends to NextEra Energy
|
-
|
-
|
(250
|
)
|
|||||||||||
Other
|
-
|
1
|
(1
|
)
|
|||||||||||
Balances, December 31, 2010
|
$
|
1,373
|
$
|
5,054
|
$
|
3,364
|
$
|
9,791
|
(a)
|
FPL's comprehensive income is the same as reported net income.
|
(b)
|
No par value, 1,000 shares authorized, issued and outstanding.
|
·
|
Subject to the provisions of the 2010 rate agreement, retail base rates will be effectively frozen through the end of 2012.
|
·
|
Incremental cost recovery through FPL’s capacity cost recovery clause (capacity clause) for WCEC Unit No. 3, which is expected to be placed in service by mid-2011, will be permitted up to the amount of the projected fuel savings for customers during the term of the 2010 rate agreement.
|
·
|
Future storm restoration costs would be recoverable on an accelerated basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $4 for every 1,000 kilowatt-hours (kwh) of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge for the amount above $800 million.
|
·
|
If FPL's earned regulatory ROE falls below 9%, FPL may seek retail base rate relief. If FPL's earned regulatory ROE rises above 11%, any party to the 2010 rate agreement may seek a reduction in FPL’s retail base rates. In determining the regulatory ROE for all purposes under the 2010 rate agreement, earnings will be calculated on an actual, non-weather-adjusted basis.
|
·
|
FPL can vary the amount of surplus depreciation credit taken in any calendar year up to a cap in 2010 of $267 million, a cap in subsequent years of $267 million plus the amount of any unused portion from prior years, and a cap of $776 million (surplus depreciation credit cap) over the course of the 2010 rate agreement, provided that in any year of the 2010 rate agreement, including 2010, FPL must use at least enough surplus depreciation credit to maintain a 9% earned regulatory ROE but may not use any amount of surplus depreciation credit that would result in an earned regulatory ROE in excess of 11%.
|
Weighted Average
Useful Lives
|
December 31,
|
|||||||
(Years)
|
2010
|
2009
|
||||||
(millions)
|
||||||||
Goodwill:
|
||||||||
Merchant reporting unit
|
$
|
72
|
$
|
72
|
||||
Wind reporting unit
|
45
|
41
|
||||||
Total goodwill
|
$
|
117
|
$
|
113
|
||||
Other intangible assets:
|
||||||||
Purchase power agreements
|
19
|
$
|
87
|
$
|
87
|
|||
Customer lists
|
7
|
34
|
28
|
|||||
Other, primarily land and transmission rights, permits and licenses
|
27
|
249
|
216
|
|||||
Total
|
370
|
331
|
||||||
Less accumulated amortization
|
93
|
78
|
||||||
Total other intangible assets - net
|
$
|
277
|
$
|
253
|
Date
|
Proceeds
|
Generating Capacity
|
Wind Facilities
|
|||||
(millions)
|
(mw)
|
|||||||
December 2007
|
$705
|
598
|
Logan Wind, Mower County Wind, Oliver County Wind I and II, and Peetz Table Wind
|
|||||
April 2010
|
$190
|
170
|
Ashtabula Wind II and Wilton Wind II
|
|||||
September 2010
|
$75
|
(a)
|
309
|
Crystal Lake I, Langdon Wind and Langdon Wind II
|
(a)
|
NextEra Energy will receive future capital contributions from the third-party investor on a semi-annual basis through December 31, 2018 based on the amount of PTCs generated by the facilities. At December 31, 2010, the future capital contributions are expected to total approximately $207 million based on projected wind generation.
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(millions)
|
||||||||||||||||
Change in plan assets:
|
||||||||||||||||
Fair value of plan assets at January 1
|
$ | 3,028 | $ | 2,503 | $ | 32 | $ | 29 | ||||||||
Actual return on plan assets
|
380 | 656 | 2 | 5 | ||||||||||||
Employer contributions
(a)
|
3 | - | 28 | 29 | ||||||||||||
Transfers
(b)
|
(29 | ) | (29 | ) | - | - | ||||||||||
Participant contributions
|
- | - | 9 | 7 | ||||||||||||
Benefit payments
(a)
|
(149 | ) | (102 | ) | (39 | ) | (38 | ) | ||||||||
Fair value of plan assets at December 31
|
$ | 3,233 | $ | 3,028 | $ | 32 | $ | 32 | ||||||||
Change in benefit obligation:
|
||||||||||||||||
Obligation at January 1
|
$ | 1,866 | $ | 1,604 | $ | 430 | $ | 367 | ||||||||
Service cost
|
59 | 51 | 6 | 5 | ||||||||||||
Interest cost
|
102 | 109 | 23 | 24 | ||||||||||||
Participant contributions
|
- | - | 9 | 7 | ||||||||||||
Plan amendments
(c)
|
1 | 3 | - | (1 | ) | |||||||||||
Special termination benefits
(d)
|
13 | - | - | - | ||||||||||||
Actuarial losses (gains) - net
|
102 | 201 | (12 | ) | 66 | |||||||||||
Benefit payments
|
(149 | ) | (102 | ) | (39 | ) | (38 | ) | ||||||||
Obligation at December 31
(e)
|
$ | 1,994 | $ | 1,866 | $ | 417 | $ | 430 | ||||||||
Funded status:
|
||||||||||||||||
Prepaid (accrued) benefit cost at NextEra Energy at December 31
|
$ | 1,239 | $ | 1,162 | $ | (385 | ) | $ | (398 | ) | ||||||
Prepaid (accrued) benefit cost at FPL at December 31
|
$ | 1,027 | $ | 1,009 | $ | (279 | ) | $ | (282 | ) |
(a)
|
Employer contributions and benefit payments include only those amounts contributed directly to, or paid directly from, plan assets. FPL's portion of contributions related to SERP benefits was $1 million for 2010. FPL's portion of contributions related to other benefits was $26 million and $27 million for 2010 and 2009, respectively.
|
(b)
|
Represents amounts that were transferred from the qualified pension plan as reimbursement for eligible retiree medical expenses paid by NextEra Energy pursuant to the provisions of the Internal Revenue Code (IRC).
|
(c)
|
Primarily relates to union negotiated credits, IRC transfers and various SERP and other benefits amendments.
|
(d)
|
Reflects an enhanced early retirement program offered during 2010.
|
(e)
|
NextEra Energy's accumulated benefit obligation, which includes no assumption about future salary levels, for its pension plans at December 31, 2010 and 2009 was $1,935 million and $1,804 million, respectively.
|
NextEra Energy
|
FPL
|
|||||||||||||||||||||||||||||||
Pension Benefits
|
Other Benefits
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||||
Prepaid benefit costs
|
$ | 1,259 | $ | 1,184 | $ | - | $ | - | $ | 1,035 | $ | 1,017 | $ | - | $ | - | ||||||||||||||||
Accrued benefit cost included in other current liabilities
|
(3 | ) | (2 | ) | (27 | ) | (29 | ) | (2 | ) | (2 | ) | (23 | ) | (24 | ) | ||||||||||||||||
Accrued benefit cost included in other liabilities
|
(17 | ) | (20 | ) | (358 | ) | (369 | ) | (6 | ) | (6 | ) | (256 | ) | (258 | ) | ||||||||||||||||
Prepaid (accrued) benefit cost at December 31
|
$ | 1,239 | $ | 1,162 | $ | (385 | ) | $ | (398 | ) | $ | 1,027 | $ | 1,009 | $ | (279 | ) | $ | (282 | ) |
Pension Benefits
|
Other Benefits
|
||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||
(millions)
|
|||||||||||||
Components of AOCI:
|
|||||||||||||
Unrecognized prior service benefit (cost) (net of $2 and $2 tax benefit, respectively)
|
$
|
(4
|
)
|
$
|
(3
|
)
|
$
|
-
|
$
|
-
|
|||
Unrecognized transition obligation (net of $1 and $1 tax benefit, respectively)
|
-
|
-
|
(1
|
)
|
(1
|
)
|
|||||||
Unrecognized gain (loss) (net of $5 tax expense, $4 tax expense, $5 tax benefit and $6 tax benefit, respectively)
|
8
|
7
|
(4
|
)
|
(6
|
)
|
|||||||
Total
|
$
|
4
|
(a)
|
$
|
4
|
$
|
(5
|
)
(b)
|
$
|
(7
|
)
|
(a)
|
Approximately $1 million of prior service benefits is expected to be reclassified into earnings within the next 12 months.
|
(b)
|
Approximately $1 million of transition obligations is expected to be reclassified into earnings within the next 12 months.
|
Regulatory Assets (Liabilities)
(Pension)
|
Regulatory Assets
(SERP and Other)
|
|||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
(millions)
|
||||||||||||
Unrecognized prior service cost
|
$
|
13
|
$
|
10
|
$
|
1
|
$
|
2
|
||||
Unrecognized transition obligation
|
-
|
-
|
4
|
7
|
||||||||
Unrecognized (gain) loss
|
(64
|
)
|
(28
|
)
|
37
|
45
|
||||||
Total
|
$
|
(51
|
)
(a)
|
$
|
(18
|
)
|
$
|
42
|
(b)
|
$
|
54
|
(a)
|
Approximately $1 million of prior service benefits will be reclassified into earnings within the next 12 months.
|
(b)
|
Approximately $2 million of transition obligations will be reclassified into earnings within the next 12 months.
|
Pension Benefits
|
Other Benefits
|
||||||
2010
|
2009
|
2010
|
2009
|
||||
Discount rate
|
5.00%
|
5.50%
|
5.25%
|
5.50%
|
|||
Salary increase
|
4.00%
|
4.00%
|
4.00%
|
4.00%
|
December 31, 2010
(a)
|
|||||||||||
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||
(millions)
|
|||||||||||
Equity
|
$
|
800
|
(b)
|
$
|
6
|
$
|
-
|
$
|
806
|
||
Equity commingled vehicles
|
-
|
669
|
(c)
|
11
|
680
|
||||||
U.S. Government and municipal bonds
|
60
|
35
|
-
|
95
|
|||||||
Corporate debt securities
(d)
|
-
|
335
|
-
|
335
|
|||||||
Mortgage-backed securities
|
-
|
263
|
-
|
263
|
|||||||
Debt security commingled vehicles
(e)
|
-
|
744
|
-
|
744
|
|||||||
Convertible bonds
|
-
|
310
|
-
|
310
|
|||||||
Total
|
$
|
860
|
$
|
2,362
|
$
|
11
|
$
|
3,233
|
(a)
|
See Note 4 for discussion of NextEra Energy's fair value measurement techniques.
|
(b)
|
Includes foreign investments of $293 million.
|
(c)
|
Includes foreign investments of $219 million.
|
(d)
|
Includes foreign investments of $47 million.
|
(e)
|
Includes foreign investments of $56 million and $206 million of short-term commingled vehicles.
|
December 31, 2009
(a)
|
|||||||||||
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||
(millions)
|
|||||||||||
Equity
|
$
|
424
|
$
|
-
|
$
|
-
|
$
|
424
|
|||
Equity commingled vehicles
(b)
|
-
|
941
|
-
|
941
|
|||||||
U.S. Government and municipal bonds
|
77
|
30
|
-
|
107
|
|||||||
Corporate debt securities
(c)
|
-
|
399
|
-
|
399
|
|||||||
Mortgage-backed securities
|
-
|
361
|
-
|
361
|
|||||||
Debt security commingled vehicles
(d)
|
-
|
503
|
-
|
503
|
|||||||
Convertible bonds
|
-
|
293
|
-
|
293
|
|||||||
Total
|
$
|
501
|
$
|
2,527
|
$
|
-
|
$
|
3,028
|
(a)
|
See Note 4 for discussion of NextEra Energy's fair value measurement techniques.
|
(b)
|
Includes foreign investments of $499 million.
|
(c)
|
Includes foreign investments of $45 million.
|
(d)
|
Includes foreign investments of $56 million and $53 million of short-term commingled vehicles.
|
Pension
Benefits
|
Other
Benefits
|
|||||||
(millions)
|
||||||||
2011
|
$ | 173 | $ | 34 | ||||
2012
|
$ | 167 | $ | 35 | ||||
2013
|
$ | 169 | $ | 34 | ||||
2014
|
$ | 163 | $ | 32 | ||||
2015
|
$ | 159 | $ | 32 | ||||
2016 - 2020
|
$ | 814 | $ | 153 |
Pension Benefits
|
Other Benefits
|
|||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||
(millions)
|
||||||||||||||||||
Service cost
|
$
|
59
|
$
|
51
|
$
|
54
|
$
|
6
|
$
|
5
|
$
|
5
|
||||||
Interest cost
|
102
|
109
|
102
|
23
|
24
|
25
|
||||||||||||
Expected return on plan assets
|
(241
|
)
|
(239
|
)
|
(240
|
)
|
(2
|
)
|
(3
|
)
|
(3
|
)
|
||||||
Amortization of transition obligation
|
-
|
-
|
-
|
3
|
4
|
4
|
||||||||||||
Amortization of prior service benefit
|
(3
|
)
|
(3
|
)
|
(4
|
)
|
-
|
-
|
-
|
|||||||||
Amortization of gains
|
1
|
(23
|
)
|
(29
|
)
|
-
|
-
|
-
|
||||||||||
SERP settlements
|
1
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Special termination benefits
|
13
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Net periodic benefit (income) cost at NextEra Energy
|
$
|
(68
|
)
|
$
|
(105
|
)
|
$
|
(117
|
)
|
$
|
30
|
$
|
30
|
$
|
31
|
|||
Net periodic benefit (income) cost at FPL
|
$
|
(42
|
)
|
$
|
(73
|
)
|
$
|
(84
|
)
|
$
|
23
|
$
|
23
|
$
|
24
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(millions)
|
||||||||||||||||
Prior service cost
|
$ | - | $ | (1 | ) | $ | - | $ | - | |||||||
Net gains (losses) (net of none, $24 tax expense, $1 tax expense and $7 tax benefit, respectively)
|
1 | 38 | 2 | (10 | ) | |||||||||||
Transition obligation
|
- | - | - | (1 | ) | |||||||||||
Amortization of prior service benefit
|
(1 | ) | (1 | ) | - | - | ||||||||||
Amortization of net gains (net of $3 tax benefit)
|
- | (4 | ) | - | - | |||||||||||
Amortization of transition obligation
|
- | - | - | 1 | ||||||||||||
Total
|
$ | - | $ | 32 | $ | 2 | $ | (10 | ) |
Regulatory
Assets (Liabilities)
(Pension)
|
Regulatory Assets
(SERP and Other)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(millions)
|
||||||||||||||||
Prior service cost
|
$ | 1 | $ | 2 | $ | - | $ | - | ||||||||
Unrecognized (gains) losses
|
(35 | ) | (159 | ) | (9 | ) | 51 | |||||||||
Transition obligation
|
- | - | - | (2 | ) | |||||||||||
Amortization of prior service benefit
|
2 | 3 | - | - | ||||||||||||
Amortization of gains
|
- | 16 | - | - | ||||||||||||
Amortization of transition obligation
|
- | - | (2 | ) | (3 | ) | ||||||||||
Total
|
$ | (32 | ) | $ | (138 | ) | $ | (11 | ) | $ | 46 |
(a)
|
In developing the expected long-term rate of return on assets assumption for its plans, NextEra Energy evaluated input from its actuaries as well as information available in the marketplace. NextEra Energy considered the 10-year and 20-year historical median returns for a portfolio with an equity/bond asset mix similar to its funds. NextEra Energy also considered its funds' historical compounded returns. No specific adjustments were made to reflect expectations of future returns.
|
NextEra Energy
|
FPL
|
|||||||||||
December 31,
|
December 31,
|
|||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
(millions)
|
||||||||||||
Current derivative assets
(a)
|
$
|
506
|
$
|
357
|
$
|
8
|
(b)
|
$
|
10
|
(b)
|
||
Noncurrent other assets
(c)
|
589
|
329
|
1
|
4
|
||||||||
Current derivative liabilities
(d)
|
(536
|
)
|
(221
|
)
|
(245
|
)
|
(77
|
)
|
||||
Noncurrent derivative liabilities
(e)
|
(243
|
)
|
(170
|
)
|
-
|
(1
|
)
(f)
|
|||||
Total mark-to-market derivative instrument assets (liabilities)
|
$
|
316
|
$
|
295
|
$
|
(236
|
)
|
$
|
(64
|
)
|
(a)
|
At December 31, 2010 and 2009, NextEra Energy's balances reflect the netting of approximately $23 million and $4 million (none at FPL), respectively, in margin cash collateral received from counterparties.
|
(b)
|
Included in current other assets on FPL's consolidated balance sheets.
|
(c)
|
At December 31, 2010 and 2009, NextEra Energy's balances reflect the netting of approximately $43 million and $1 million (none at FPL), respectively, in margin cash collateral received from counterparties.
|
(d)
|
At December 31, 2010 and 2009, NextEra Energy's balances reflect the netting of approximately $23 million and $75 million (none at FPL), respectively, in margin cash collateral provided to counterparties.
|
(e)
|
At December 31, 2010, NextEra Energy's balance reflects the netting of approximately $72 million (none at FPL) in margin cash collateral provided to counterparties.
|
(f)
|
Included in noncurrent other liabilities on FPL's consolidated balance sheets.
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
|||||||||||||
(millions)
|
||||||||||||||||
Commodity contracts:
|
||||||||||||||||
Current derivative assets
|
$ | - | $ | - | $ | 54 | $ | 1 | ||||||||
Current derivative liabilities
|
- | - | 45 | 4 | ||||||||||||
Noncurrent other assets
|
- | - | 44 | 2 | ||||||||||||
Noncurrent derivative liabilities
|
- | - | 8 | 13 | ||||||||||||
Interest rate swaps:
|
||||||||||||||||
Current derivative assets
|
16 | - | - | - | ||||||||||||
Current derivative liabilities
|
- | 64 | - | 51 | ||||||||||||
Noncurrent other assets
|
91 | - | 61 | - | ||||||||||||
Noncurrent derivative liabilities
|
- | 59 | - | 27 | ||||||||||||
Foreign currency swaps:
|
||||||||||||||||
Current derivative assets
|
24 | - | - | - | ||||||||||||
Current derivative liabilities
|
- | 4 | - | - | ||||||||||||
Noncurrent other assets
|
11 | - | 5 | - | ||||||||||||
Total
|
$ | 142 | $ | 127 | $ | 217 | $ | 98 |
Year Ended
December 31, 2010
|
Year Ended
December 31, 2009
|
|||||||||||||||||||||||
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swaps
|
Total
|
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swap
|
Total
|
|||||||||||||||||
(millions)
|
||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
20
|
$
|
(52
|
)
|
$
|
24
|
$
|
(8
|
)
|
$
|
197
|
$
|
28
|
$
|
3
|
$
|
228
|
||||||
Gains (losses) reclassified from AOCI to net income
|
$
|
118
|
(a)
|
$
|
(65
|
)
(b)
|
$
|
20
|
(c)
|
$
|
73
|
$
|
164
|
(a)
|
$
|
(39
|
)
(b)
|
$
|
4
|
(e)
|
$
|
129
|
||
Gains (losses) recognized in income
(d)
|
$
|
1
|
(a)
|
$
|
-
|
$
|
-
|
$
|
1
|
$
|
29
|
(a)
|
$
|
-
|
$
|
-
|
$
|
29
|
(a)
|
Included in operating revenues.
|
(b)
|
Included in interest expense.
|
(c)
|
Loss of approximately $4 million is included in interest expense and the balance is included in other - net.
|
(d)
|
Represents the ineffective portion of the hedging instrument.
|
(e)
|
Loss of approximately $1 million is included in interest expense and the balance is included in other - net.
|
December 31, 2010
|
December 31, 2009
|
||||||||||||||||||||||||
NextEra Energy
|
FPL
|
NextEra Energy
|
FPL
|
||||||||||||||||||||||
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||
Commodity contracts:
|
|||||||||||||||||||||||||
Current derivative assets
|
$
|
754
|
$
|
278
|
$
|
9
|
(a)
|
$
|
1
|
(a)
|
$
|
611
|
$
|
303
|
$
|
11
|
(a)
|
$
|
1
|
(a)
|
|||||
Current derivative liabilities
|
1,848
|
2,339
|
12
|
257
|
1,002
|
1,288
|
18
|
95
|
|||||||||||||||||
Noncurrent other assets
|
687
|
157
|
1
|
-
|
921
|
699
|
4
|
-
|
|||||||||||||||||
Noncurrent derivative liabilities
|
828
|
1,084
|
-
|
-
|
128
|
260
|
-
|
1
|
(b)
|
||||||||||||||||
Foreign currency swap:
|
|||||||||||||||||||||||||
Current derivative assets
|
13
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Noncurrent derivative liabilities
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
-
|
|||||||||||||||||
Total
|
$
|
4,130
|
$
|
3,858
|
$
|
22
|
$
|
258
|
$
|
2,662
|
$
|
2,556
|
$
|
33
|
$
|
97
|
(a)
|
Included in current other assets on FPL's consolidated balance sheets.
|
(b)
|
Included in noncurrent other liabilities on FPL's consolidated balance sheets.
|
Year Ended December 31,
|
||||||
2010
|
2009
|
|||||
(millions)
|
||||||
Commodity contracts:
|
||||||
Operating revenues
|
$
|
531
|
(a)
|
$
|
279
|
(a)
|
Fuel, purchased power and interchange
|
1
|
28
|
||||
Foreign currency swap:
|
||||||
Other - net
|
18
|
(3
|
)
|
|||
Total
|
$
|
550
|
$
|
304
|
(a)
|
In addition, for the year ended December 31, 2010 and 2009, FPL recorded approximately $665 million and $688 million of losses, respectively, related to commodity contracts as regulatory assets on its consolidated balance sheets.
|
Commodity Type
|
NextEra Energy
|
FPL
|
|||||
(millions)
|
|||||||
Power
|
(62
|
)
|
mwh
(a)
|
-
|
|||
Natural gas
|
1,009
|
mmbtu
(b)
|
794
|
mmbtu
(b)
|
(a)
|
Megawatt-hours
|
(b)
|
One million British thermal units
|
December 31, 2010
|
||||||||||||||||
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Netting
(a)
|
Total
|
||||||||||||
(millions)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Cash equivalents:
|
||||||||||||||||
NextEra Energy - equity securities
|
$
|
-
|
$
|
122
|
$
|
-
|
$
|
-
|
$
|
122
|
||||||
FPL - equity securities
|
$
|
-
|
$
|
7
|
$
|
-
|
$
|
-
|
$
|
7
|
||||||
Special use funds:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Equity securities
|
$
|
741
|
$
|
1,245
|
(b)
|
$
|
-
|
$
|
-
|
$
|
1,986
|
|||||
U.S. Government and municipal bonds
|
$
|
495
|
$
|
127
|
$
|
-
|
$
|
-
|
$
|
622
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
486
|
$
|
-
|
$
|
-
|
$
|
486
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
447
|
$
|
-
|
$
|
-
|
$
|
447
|
||||||
Other debt securities
|
$
|
-
|
$
|
108
|
$
|
-
|
$
|
-
|
$
|
108
|
||||||
FPL:
|
||||||||||||||||
Equity securities
|
$
|
125
|
$
|
1,082
|
(b)
|
$
|
-
|
$
|
-
|
$
|
1,207
|
|||||
U.S. Government and municipal bonds
|
$
|
458
|
$
|
111
|
$
|
-
|
$
|
-
|
$
|
569
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
334
|
$
|
-
|
$
|
-
|
$
|
334
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
381
|
$
|
-
|
$
|
-
|
$
|
381
|
||||||
Other debt securities
|
$
|
-
|
$
|
41
|
$
|
-
|
$
|
-
|
$
|
41
|
||||||
Other investments:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Equity securities
|
$
|
3
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
4
|
||||||
U.S. Government and municipal bonds
|
$
|
8
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
12
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
32
|
$
|
-
|
$
|
-
|
$
|
32
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
58
|
$
|
-
|
$
|
-
|
$
|
58
|
||||||
Other
|
$
|
5
|
$
|
10
|
$
|
-
|
$
|
-
|
$
|
15
|
||||||
Derivatives:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Commodity contracts
|
$
|
1,755
|
$
|
1,538
|
$
|
824
|
$
|
(3,177
|
)
|
$
|
940
|
(c)
|
||||
Interest rate swaps
|
$
|
-
|
$
|
107
|
$
|
-
|
$
|
-
|
$
|
107
|
(c)
|
|||||
Foreign currency swaps
|
$
|
-
|
$
|
48
|
$
|
-
|
$
|
-
|
$
|
48
|
(c)
|
|||||
FPL - commodity contracts
|
$
|
-
|
$
|
14
|
$
|
8
|
$
|
(13
|
)
|
$
|
9
|
(c)
|
||||
Liabilities:
|
||||||||||||||||
Derivatives:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Commodity contracts
|
$
|
1,821
|
$
|
1,509
|
$
|
528
|
$
|
(3,206
|
)
|
$
|
652
|
(c)
|
||||
Interest rate swaps
|
$
|
-
|
$
|
123
|
$
|
-
|
$
|
-
|
$
|
123
|
(c)
|
|||||
Foreign currency swaps
|
$
|
-
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
4
|
(c)
|
|||||
FPL - commodity contracts
|
$
|
-
|
$
|
257
|
$
|
1
|
$
|
(13
|
)
|
$
|
245
|
(c)
|
(a)
|
Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts.
|
(b)
|
At NextEra Energy, approximately $1,084 million ($980 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NextEra Energy or FPL.
|
(c)
|
See Note 3 for a reconciliation of net derivatives to NextEra Energy's and FPL's consolidated balance sheets.
|
December 31, 2009
|
|||||||||||||||||||||||||
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Netting
(a)
|
Total
|
|||||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||
Assets:
|
|||||||||||||||||||||||||
Cash equivalents:
|
|||||||||||||||||||||||||
NextEra Energy - equity securities
|
$
|
-
|
$
|
79
|
$
|
-
|
$
|
-
|
$
|
79
|
|||||||||||||||
FPL - equity securities
|
$
|
-
|
$
|
43
|
$
|
-
|
$
|
-
|
$
|
43
|
|||||||||||||||
Special use funds:
|
|||||||||||||||||||||||||
NextEra Energy:
|
|||||||||||||||||||||||||
Equity securities
|
$
|
657
|
$
|
1,048
|
(b)
|
$
|
-
|
$
|
-
|
$
|
1,705
|
||||||||||||||
U.S. Government and municipal bonds
|
$
|
275
|
$
|
299
|
$
|
-
|
$
|
-
|
$
|
574
|
|||||||||||||||
Corporate debt securities
|
$
|
-
|
$
|
452
|
$
|
-
|
$
|
-
|
$
|
452
|
|||||||||||||||
Mortgage-backed securities
|
$
|
-
|
$
|
618
|
$
|
-
|
$
|
-
|
$
|
618
|
|||||||||||||||
Other debt securities
|
$
|
-
|
$
|
41
|
$
|
-
|
$
|
-
|
$
|
41
|
|||||||||||||||
FPL:
|
|||||||||||||||||||||||||
Equity securities
|
$
|
104
|
$
|
920
|
(b)
|
$
|
-
|
$
|
-
|
$
|
1,024
|
||||||||||||||
U.S. Government and municipal bonds
|
$
|
230
|
$
|
278
|
$
|
-
|
$
|
-
|
$
|
508
|
|||||||||||||||
Corporate debt securities
|
$
|
-
|
$
|
346
|
$
|
-
|
$
|
-
|
$
|
346
|
|||||||||||||||
Mortgage-backed securities
|
$
|
-
|
$
|
503
|
$
|
-
|
$
|
-
|
$
|
503
|
|||||||||||||||
Other debt securities
|
$
|
-
|
$
|
27
|
$
|
-
|
$
|
-
|
$
|
27
|
|||||||||||||||
Other investments:
|
|||||||||||||||||||||||||
NextEra Energy:
|
|||||||||||||||||||||||||
Equity securities
|
$
|
3
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
7
|
|||||||||||||||
U.S. Government and municipal bonds
|
$
|
-
|
$
|
38
|
$
|
-
|
$
|
-
|
$
|
38
|
|||||||||||||||
Corporate debt securities
|
$
|
-
|
$
|
35
|
$
|
-
|
$
|
-
|
$
|
35
|
|||||||||||||||
Mortgage-backed securities
|
$
|
-
|
$
|
31
|
$
|
-
|
$
|
-
|
$
|
31
|
|||||||||||||||
Other
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4
|
|||||||||||||||
Derivatives:
|
|||||||||||||||||||||||||
NextEra Energy
|
$
|
988
|
$
|
1,089
|
$
|
801
|
$
|
(2,192
|
)
|
$
|
686
|
(c)
|
|||||||||||||
FPL
|
$
|
-
|
$
|
20
|
$
|
13
|
$
|
(19
|
)
|
$
|
14
|
(c)
|
|||||||||||||
Liabilities:
|
|||||||||||||||||||||||||
Derivatives:
|
|||||||||||||||||||||||||
NextEra Energy
|
$
|
1,110
|
$
|
1,106
|
$
|
437
|
$
|
(2,262
|
)
|
$
|
391
|
(c)
|
|||||||||||||
FPL
|
$
|
-
|
$
|
95
|
$
|
2
|
$
|
(19
|
)
|
$
|
78
|
(c)
|
(a)
|
Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts.
|
(b)
|
At NextEra Energy, approximately $918 million ($836 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NextEra Energy or FPL.
|
(c)
|
See Note 3 for a reconciliation of net derivatives to NextEra Energy's and FPL's consolidated balance sheets.
|
Year Ended December 31,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
NextEra
Energy
|
FPL
|
NextEra
Energy
|
FPL
|
|||||||||||||
(millions)
|
||||||||||||||||
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year
|
$ | 364 | $ | 11 | $ | 404 | $ | (1 | ) | |||||||
Realized and unrealized gains (losses):
|
||||||||||||||||
Included in earnings
(a)
|
407 | - | 555 | - | ||||||||||||
Included in regulatory assets and liabilities
|
1 | 1 | 7 | 7 | ||||||||||||
Purchases, sales, settlements and net option premiums
|
(432 | ) | (5 | ) | (521 | ) | 6 | |||||||||
Net transfers in/out
(b)
|
(44 | ) | - | (81 | ) | (1 | ) | |||||||||
Fair value of net derivatives based on significant unobservable inputs at December 31
|
$ | 296 | $ | 7 | $ | 364 | $ | 11 | ||||||||
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date
(c)
|
$ | 170 | $ | - | $ | 270 | $ | - |
(a)
|
For the year ended December 31, 2010 and 2009, $384 million and $555 million, respectively, of realized and unrealized gains are reflected in operating revenues in the consolidated statements of income. For the year ended December 31, 2010, $23 million of realized and unrealized gains are reflected in fuel, purchased power and interchange in the consolidated statements of income.
|
(b)
|
For the year ended December 31, 2010, gross transfers of $2 million into Level 3 were a result of decreased observability of market data, and gross transfers of $46 million from Level 3 to Level 2 were a result of increased observability of market data. NextEra Energy's and FPL's policy is to recognize all transfers at the beginning of the reporting period.
|
(c)
|
For the year ended December 31, 2010 and 2009, $153 million and $270 million, respectively, of unrealized gains are reflected in operating revenues in the consolidated statements of income. For the year ended December 31, 2010, $17 million of unrealized gains are reflected in fuel, purchased power and interchange in the consolidated statements of income.
|
December 31, 2010
|
December 31, 2009
|
||||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||||||
(millions)
|
|||||||||||||
NextEra Energy:
|
|||||||||||||
Special use funds
|
$
|
3,742
|
(a)
|
$
|
3,742
|
(b)
|
$
|
3,390
|
(a)
|
$
|
3,390
|
(b)
|
|
Other investments:
|
|||||||||||||
Notes receivable
|
$
|
525
|
$
|
583
|
(c)
|
$
|
534
|
$
|
556
|
(c)
|
|||
Debt securities
|
$
|
114
|
(d)
|
$
|
114
|
(b)
|
$
|
104
|
(d)
|
$
|
104
|
(b)
|
|
Equity securities
|
$
|
57
|
$
|
125
|
(e)
|
$
|
45
|
$
|
105
|
(e)
|
|||
Long-term debt, including current maturities
|
$
|
19,929
|
$
|
20,756
|
(f)
|
$
|
16,869
|
$
|
17,256
|
(f)
|
|||
Interest rate swaps - net unrealized losses
|
$
|
(16
|
)
|
$
|
(16
|
)
(g)
|
$
|
(17
|
)
|
$
|
(17
|
)
(g)
|
|
Foreign currency swaps - net unrealized gains (losses)
|
$
|
44
|
$
|
44
|
(g)
|
$
|
(1
|
)
|
$
|
(1
|
)
(g)
|
||
FPL:
|
|||||||||||||
Special use funds
|
$
|
2,637
|
(a)
|
$
|
2,637
|
(b)
|
$
|
2,408
|
(a)
|
$
|
2,408
|
(b)
|
|
Long-term debt, including current maturities
|
$
|
6,727
|
$
|
7,236
|
(f)
|
$
|
5,836
|
$
|
6,055
|
(f)
|
(a)
|
At December 31, 2010, includes $76 million of investments accounted for under the equity method and $17 million of loans not measured at fair value on a recurring basis ($94 million and $11 million, respectively, for FPL). For the remaining balance, see Note 4 for classification by major security type. The amortized cost of debt and equity securities is $1,616 million and $1,489 million, respectively, at December 31, 2010 and $1,638 million and $1,396 million, respectively, at December 31, 2009 ($1,281 million and $943 million, respectively, at December 31, 2010 and $1,344 million and $873 million, respectively, at December 31, 2009 for FPL).
|
(b)
|
Based on quoted market prices for these or similar issues.
|
(c)
|
Classified as held to maturity. Based on market prices provided by external sources. Notes receivable bear interest at variable rates based on an underlying index plus a margin and mature from 2014 to 2029. Notes receivable are considered impaired and placed in non-accrual status when it becomes probable that all amounts due cannot be collected in accordance with the contractual terms of the agreement. The assessment to place notes receivable in non-accrual status considers various credit indicators, such as credit standings and ratings and market-related information. As of December 31, 2010, neither NextEra Energy nor FPL had any material notes receivable reported in non-accrual status.
|
(d)
|
Classified as trading securities.
|
(e)
|
Modeled internally based on latest market data.
|
(f)
|
Provided by external sources based on market prices indicative of market conditions.
|
(g)
|
Modeled internally based on market values using discounted cash flow analysis and credit valuation adjustment.
|
NextEra Energy
|
FPL
|
|||||||||||||||||||||||
Years Ended December 31,
|
Years Ended December 31,
|
|||||||||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||||||||
(millions)
|
||||||||||||||||||||||||
Realized gains
|
$ | 106 | $ | 108 | $ | 50 | $ | 49 | $ | 48 | $ | 38 | ||||||||||||
Realized losses
|
$ | 30 | $ | 30 | $ | 54 | $ | 22 | $ | 25 | $ | 50 | ||||||||||||
Proceeds from sale of securities
|
$ | 6,726 | $ | 4,592 | $ | 2,235 | $ | 5,079 | $ | 3,270 | $ | 1,454 |
NextEra Energy
|
FPL
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(millions)
|
||||||||||||||||
Equity securities
|
$ | 612 | $ | 400 | $ | 384 | $ | 240 | ||||||||
U.S. Government and municipal bonds
|
$ | 15 | $ | 14 | $ | 15 | $ | 13 | ||||||||
Corporate debt securities
|
$ | 23 | $ | 21 | $ | 19 | $ | 16 | ||||||||
Mortgage-backed securities
|
$ | 20 | $ | 22 | $ | 18 | $ | 18 | ||||||||
Other debt securities
|
$ | 2 | $ | 1 | $ | 1 | $ | 1 |
NextEra Energy
|
FPL
|
|||||||||||||||||||||||
Years Ended December 31,
|
Years Ended December 31,
|
|||||||||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||||||||
(millions)
|
||||||||||||||||||||||||
Federal:
|
||||||||||||||||||||||||
Current
(a)
|
$ | 11 | $ | (18 | ) | $ | (132 | ) | $ | 113 | $ | 63 | $ | 117 | ||||||||||
Deferred
|
434 | 290 | 542 | 385 | 342 | 259 | ||||||||||||||||||
Total federal
|
445 | 272 | 410 | 498 | 405 | 376 | ||||||||||||||||||
State:
|
||||||||||||||||||||||||
Current
(a)
|
11 | 77 | 29 | 49 | 57 | 34 | ||||||||||||||||||
Deferred
|
76 | (22 | ) | 11 | 33 | 11 | 33 | |||||||||||||||||
Total state
|
87 | 55 | 40 | 82 | 68 | 67 | ||||||||||||||||||
Total income taxes
|
$ | 532 | $ | 327 | $ | 450 | $ | 580 | $ | 473 | $ | 443 |
(a)
|
Includes provision for unrecognized tax benefits.
|
NextEra Energy
|
FPL
|
|||||||||||||||||||||||
Years Ended December 31,
|
Years Ended December 31,
|
|||||||||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||||||||
Statutory federal income tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||
Increases (reductions) resulting from:
|
||||||||||||||||||||||||
State income taxes - net of federal income tax benefit
|
2.4 | 1.9 | 1.3 | 3.5 | 3.4 | 3.5 | ||||||||||||||||||
Allowance for other funds used during construction
|
(0.5 | ) | (1.0 | ) | (0.6 | ) | (0.8 | ) | (1.5 | ) | (1.1 | ) | ||||||||||||
Amortization of ITCs - FPL
|
(0.1 | ) | (0.4 | ) | (0.7 | ) | (0.2 | ) | (0.6 | ) | (1.2 | ) | ||||||||||||
PTCs and ITCs - NextEra Energy Resources
|
(12.2 | ) | (13.1 | ) | (12.7 | ) | - | - | - | |||||||||||||||
Convertible ITCs - NextEra Energy Resources
|
(2.5 | ) | (4.3 | ) | - | - | - | - | ||||||||||||||||
Other - net
|
(0.7 | ) | (1.2 | ) | (0.7 | ) | 0.5 | - | (0.3 | ) | ||||||||||||||
Effective income tax rate
|
21.4 | % | 16.9 | % | 21.6 | % | 38.0 | % | 36.3 | % | 35.9 | % |
NextEra Energy
|
FPL
|
||||||||||
December 31,
|
December 31,
|
||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||
(millions)
|
|||||||||||
Deferred tax liabilities:
|
|||||||||||
Property-related
|
$
|
7,795
|
$
|
6,968
|
$
|
4,532
|
$
|
4,202
|
|||
Pension
|
485
|
457
|
399
|
392
|
|||||||
Storm reserve deficiency
|
258
|
279
|
258
|
279
|
|||||||
Nuclear decommissioning trusts
|
146
|
201
|
-
|
-
|
|||||||
Net unrealized gains on derivatives
|
226
|
116
|
-
|
-
|
|||||||
Deferred fuel costs
|
101
|
-
|
101
|
-
|
|||||||
Other
|
638
|
371
|
187
|
157
|
|||||||
Total deferred tax liabilities
|
9,649
|
8,392
|
5,477
|
5,030
|
|||||||
Deferred tax assets and valuation allowance:
|
|||||||||||
Decommissioning reserves
|
393
|
379
|
323
|
313
|
|||||||
Postretirement benefits
|
175
|
183
|
130
|
133
|
|||||||
Net operating loss carryforwards
|
663
|
(a)
|
270
|
(a)
|
-
|
-
|
|||||
Tax credit carryforwards
|
1,819
|
(b)
|
1,364
|
(b)
|
-
|
-
|
|||||
ARO and accrued asset removal costs
|
895
|
896
|
802
|
811
|
|||||||
Other
|
790
|
683
|
309
|
249
|
|||||||
Valuation allowance
(c)
|
(246
|
)
|
(129
|
)
|
-
|
-
|
|||||
Net deferred tax assets
|
4,489
|
3,646
|
1,564
|
1,506
|
|||||||
Net accumulated deferred income taxes
|
$
|
5,160
|
$
|
4,746
|
$
|
3,913
|
$
|
3,524
|
(a)
|
Reflects $42 million and $(26) million, respectively, of tax carryforwards related to NextEra Energy's unrecognized tax benefits.
|
(b)
|
Amount is presented net of $52 million and $58 million, respectively, of tax carryforwards that are available to offset NextEra Energy's liability for unrecognized tax benefits.
|
(c)
|
Amount relates to deferred state tax credits and state operating loss carryforwards.
|
NextEra Energy
|
FPL
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(millions)
|
||||||||||||||||
Other current assets
|
$ | 17 | $ | 128 | $ | - | $ | - | ||||||||
Other assets
|
106 | - | - | - | ||||||||||||
Other current liabilities
|
(174 | ) | (14 | ) | (78 | ) | (15 | ) | ||||||||
Accumulated deferred income taxes
|
(5,109 | ) | (4,860 | ) | (3,835 | ) | (3,509 | ) | ||||||||
Net accumulated deferred income taxes
|
$ | (5,160 | ) | $ | (4,746 | ) | $ | (3,913 | ) | $ | (3,524 | ) |
Amount
|
Expiration
Dates
|
|||
(millions)
|
||||
Net operating loss carryforwards:
|
||||
Federal
|
$
|
484
|
(a)
|
2026 - 2030
|
State
|
170
|
2014 - 2030
|
||
Foreign
|
9
|
2021 - 2030
|
||
Net operating loss carryforwards
|
$
|
663
|
||
Tax credit carryforwards:
|
||||
Federal
|
$
|
1,539
|
(b)
|
2022 - 2030
|
State
|
280
|
2011 - 2035
|
||
Net tax credit carryforwards
|
$
|
1,819
|
(a)
|
Amount includes $42 million of tax carryforwards related to NextEra Energy's unrecognized tax benefits.
|
(b)
|
Amount is presented net of $52 million of tax carryforwards that are available to offset NextEra Energy's liability for unrecognized tax benefits.
|
NextEra Energy
|
FPL
|
|||||||||||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||||||||||||
(millions)
|
||||||||||||||||||||||||
Balance at beginning of year
|
$ | 279 | $ | 249 | $ | 320 | $ | 247 | $ | 217 | $ | 281 | ||||||||||||
Additions based on tax positions related to the current year
|
4 | 24 | 14 | - | 24 | 13 | ||||||||||||||||||
Reductions based on tax positions related to the current year
|
- | - | (44 | ) | - | - | (44 | ) | ||||||||||||||||
Additions for tax positions of the prior years
|
67 | 26 | 91 | 53 | 26 | 89 | ||||||||||||||||||
Reductions for tax positions of the prior years
|
(86 | ) | (20 | ) | (40 | ) | (85 | ) | (20 | ) | (30 | ) | ||||||||||||
Reductions relating to settlements with taxing authorities
|
- | - | (92 | ) | - | - | (92 | ) | ||||||||||||||||
Balance at end of year
(a)
|
264 | 279 | 249 | 215 | 247 | 217 | ||||||||||||||||||
Tax carryforwards, deposits and other receivables
|
(259 | ) | (239 | ) | (219 | ) | (184 | ) | (192 | ) | (176 | ) | ||||||||||||
Balance at end of year, net
|
$ | 5 | $ | 40 | $ | 30 | $ | 31 | $ | 55 | $ | 41 |
(a)
|
Amounts are net of the federal tax benefit of state tax positions of approximately $15 million, $16 million and $14 million ($11 million, $12 million and $11 million for FPL), respectively.
|
Accumulated
Other Comprehensive Income (Loss)
|
||||||||||||||||
Net
Income
|
Net
Unrealized
Gains
(Losses)
On Cash
Flow Hedges
|
Other
|
Total
|
Comprehensive
Income
|
||||||||||||
(millions)
|
||||||||||||||||
Balances, December 31, 2007
|
$
|
(81
|
)
|
$
|
197
|
$
|
116
|
|||||||||
Net income of NextEra Energy
|
$
|
1,639
|
$
|
1,639
|
||||||||||||
Net unrealized gains (losses) on cash flow hedges:
|
||||||||||||||||
Effective portion of net unrealized gains
|
(4
|
)
|
-
|
(4
|
)
|
(4
|
)
|
|||||||||
Reclassification from AOCI to net income (net of $66 tax expense)
|
90
|
-
|
90
|
90
|
||||||||||||
Net unrealized losses on available for sale securities (net of $30 tax benefit)
|
-
|
(46
|
)
|
(46
|
)
|
(46
|
)
|
|||||||||
Adjustments between AOCI and retained earnings
|
-
|
(1
|
)
|
(1
|
)
|
-
|
||||||||||
Defined benefit pension and other benefits plans (net of $104 tax benefit)
|
-
|
(168
|
)
|
(168
|
)
|
(167
|
)
|
|||||||||
Balances, December 31, 2008
|
5
|
(18
|
)
|
(13
|
)
|
$
|
1,512
|
|||||||||
Net income of NextEra Energy
|
$
|
1,615
|
$
|
1,615
|
||||||||||||
Net unrealized gains (losses) on cash flow hedges:
|
||||||||||||||||
Effective portion of net unrealized gains (net of $90 tax expense)
|
137
|
-
|
137
|
137
|
||||||||||||
Reclassification from AOCI to net income (net of $50 tax benefit)
(a)
|
(75
|
)
|
-
|
(75
|
)
|
(75
|
)
|
|||||||||
Net unrealized gains (losses) on available for sale securities:
|
||||||||||||||||
Net unrealized gains on securities still held (net of $77 tax expense)
|
-
|
119
|
119
|
119
|
||||||||||||
Reclassification from AOCI to net income (net of $17 tax benefit)
|
-
|
(27
|
)
|
(27
|
)
|
(27
|
)
|
|||||||||
Adjustments between AOCI and retained earnings
|
-
|
(5
|
)
|
(5
|
)
|
-
|
||||||||||
Defined benefit pension and other benefits plans (net of $14 tax expense)
|
-
|
22
|
22
|
22
|
||||||||||||
Net unrealized gains on foreign currency translation (net of $5 tax expense)
|
-
|
11
|
11
|
11
|
||||||||||||
Balances, December 31, 2009
|
67
|
102
|
169
|
$
|
1,802
|
|||||||||||
Net income of NextEra Energy
|
$
|
1,957
|
$
|
1,957
|
||||||||||||
Net unrealized gains (losses) on cash flow hedges:
|
||||||||||||||||
Effective portion of net unrealized losses (net of $3 tax benefit)
|
(5
|
)
|
-
|
(5
|
)
|
(5
|
)
|
|||||||||
Reclassification from AOCI to net income (net of $35 tax benefit)
|
(38
|
)
|
-
|
(38
|
)
|
(38
|
)
|
|||||||||
Net unrealized gains (losses) on available for sale securities:
|
||||||||||||||||
Net unrealized gains on securities still held (net of $41 tax expense)
|
-
|
60
|
60
|
60
|
||||||||||||
Reclassification from AOCI to net income (net of $16 tax benefit)
|
-
|
(21
|
)
|
(21
|
)
|
(21
|
)
|
|||||||||
Defined benefit pension and other benefits plans (net of $1 tax expense)
|
-
|
2
|
2
|
2
|
||||||||||||
Net unrealized losses on foreign currency translation
|
-
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
|||||||||
Balances, December 31, 2010
|
$
|
24
|
(b)
|
$
|
142
|
(c)
|
$
|
166
|
$
|
1,954
|
(a)
|
Includes amounts reclassified into earnings due to discontinuance of cash flow hedges of approximately $3 million (net of $2 million tax benefit) for which the hedged transactions are no longer probable of occurring.
|
(b)
|
Approximately $4 million of losses, related to derivative instruments, is expected to be reclassified into earnings within the next twelve months as either the hedged fuel is consumed, electricity is sold or principal and/or interest payments are made. Such amount assumes no change in fuel prices, power prices, interest rates or scheduled principal payments.
|
(c)
|
Approximately $1 million of prior service benefits and approximately $1 million of transition obligations is expected to be reclassified into earnings within the next twelve months.
|
December 31, 2010
|
||||||||||||||
Ownership
Interest
|
Gross
Investment
(a)
|
Accumulated
Depreciation
(a)
|
Construction Work
in Progress
|
|||||||||||
(millions)
|
||||||||||||||
FPL:
|
||||||||||||||
St. Lucie Unit No. 2
|
85
|
%
|
$
|
1,359
|
$
|
585
|
$
|
199
|
||||||
St. Johns River Power Park units and coal terminal
|
20
|
%
|
$
|
391
|
$
|
152
|
$
|
3
|
||||||
Scherer Unit No. 4
|
76
|
%
|
$
|
703
|
$
|
218
|
$
|
251
|
||||||
NextEra Energy Resources:
|
||||||||||||||
Duane Arnold
|
70
|
%
|
$
|
324
|
$
|
62
|
$
|
27
|
||||||
Seabrook
|
88.23
|
%
|
$
|
848
|
$
|
141
|
$
|
71
|
||||||
Wyman Station Unit No. 4
|
84.35
|
%
|
$
|
104
|
$
|
39
|
$
|
-
|
||||||
Corporate and Other:
|
||||||||||||||
Transmission substation assets located in Seabrook, New Hampshire
|
88.23
|
%
|
$
|
59
|
$
|
12
|
$
|
5
|
(a)
|
Excludes nuclear fuel.
|
2010
|
2009
|
|||||||
(millions)
|
||||||||
Net income
|
$ | 81 | $ | 78 | ||||
Total assets
|
$ | 660 | $ | 717 | ||||
Total liabilities
|
$ | 210 | $ | 354 | ||||
Partners'/members' equity
|
$ | 450 | $ | 363 | ||||
NextEra Energy Resources' share of underlying equity in the principal operating entities
|
$ | 223 | $ | 180 | ||||
Difference between investment carrying amount and underlying equity in net assets
(a)
|
(26 | ) | (15 | ) | ||||
NextEra Energy Resources' investment carrying amount for the principal operating entities
|
$ | 197 | $ | 165 |
(a)
|
The majority of the difference between the investment carrying amount and the underlying equity in net assets is being amortized over the remaining life of the investee's assets.
|
Years Ended December 31,
|
||||||||||||
2010
|
2009
|
2008
|
||||||||||
(millions, except per share amounts)
|
||||||||||||
Numerator - net income
|
$ | 1,957 | $ | 1,615 | $ | 1,639 | ||||||
Denominator:
|
||||||||||||
Weighted-average number of common shares outstanding - basic
|
410.3 | 404.4 | 400.1 | |||||||||
Options, performance share awards, restricted stock, equity units and warrants
(a)
|
2.7 | 2.8 | 2.6 | |||||||||
Weighted-average number of common shares outstanding - assuming dilution
|
413.0 | 407.2 | 402.7 | |||||||||
Earnings per share of common stock:
|
||||||||||||
Basic
|
$ | 4.77 | $ | 3.99 | $ | 4.10 | ||||||
Assuming dilution
|
$ | 4.74 | $ | 3.97 | $ | 4.07 |
(a)
|
Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award. Options, performance share awards, restricted stock, equity units and warrants are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method.
|
2010
|
2009
|
2008
|
||||||
Expected volatility
(a)
|
20.74 - 21.64
|
%
|
19.02 - 20.23
|
%
|
17.33
|
%
|
||
Expected dividends
|
3.61 - 4.39
|
%
|
3.35 - 3.71
|
%
|
2.75
|
%
|
||
Expected term (years)
|
6
|
(b)
|
6
|
(b)
|
6
|
(c)
|
||
Risk-free rate
|
1.65 - 2.91
|
%
|
2.68 - 2.97
|
%
|
3.24
|
%
|
(a)
|
Based on historical experience.
|
(b)
|
Based on historical exercise and post-vesting cancellation experience adjusted for outstanding awards.
|
(c)
|
NextEra Energy used the "simplified" method to calculate the expected term.
|
Shares
Underlying
Options
|
Weighted-
Average
Exercise
Price
Per Share
|
Weighted-
Average
Remaining
Contractual
Term
(years)
|
Aggregate
Intrinsic
Value
(millions)
|
||||||||||
Balance, January 1, 2010
|
5,739,263
|
$
|
35.65
|
||||||||||
Granted
|
687,001
|
$
|
45.71
|
||||||||||
Exercised
|
(1,384,015
|
)
|
$
|
29.52
|
|||||||||
Forfeited
|
(3,197
|
)
|
$
|
64.69
|
|||||||||
Expired
|
(2,400
|
)
|
$
|
25.27
|
|||||||||
Balance, December 31, 2010
|
5,036,652
|
$
|
38.69
|
4.4
|
$
|
73
|
|||||||
Exercisable, December 31, 2010
|
3,942,358
|
$
|
35.85
|
3.2
|
$
|
68
|
December 31,
|
||||||||
2010
|
2009
|
|||||||
(millions)
|
||||||||
FPL:
|
||||||||
First mortgage bonds - maturing 2013 through 2041 - 4.85% to 6.20%
|
$ | 5,540 | $ | 4,640 | ||||
Storm-recovery bonds - maturing 2013 through 2021 - 5.0440% to 5.2555%
(a)
|
531 | 572 | ||||||
Pollution control, solid waste disposal and industrial development revenue bonds - maturing 2020 through 2029 - variable, 0.3% and 0.2% weighted-average interest rates, respectively
(b)
|
633 | 633 | ||||||
Other long-term debt - maturing 2011 through 2040 - 4.000% to 5.250%
|
57 | 24 | ||||||
Unamortized discount
|
(34 | ) | (33 | ) | ||||
Total long-term debt of FPL
|
6,727 | 5,836 | ||||||
Less current maturities of long-term debt
|
45 | 42 | ||||||
Long-term debt of FPL, excluding current maturities
|
6,682 | 5,794 | ||||||
Capital Holdings:
|
||||||||
Debentures - maturing 2011 through 2019 - 2.55% to 7 7/8%
|
2,500 | 1,850 | ||||||
Debentures - maturing 2011 through 2012 - variable, 1.0% and 0.9% weighted-average interest rate, respectively
(c)(d)
|
450 | 450 | ||||||
Debentures, related to NextEra Energy's equity units - maturing 2014 and 2015 - 3.60% and 1.90%
|
753 | 350 | ||||||
Junior Subordinated Debentures - maturing 2044 through 2069 - 5 7/8% to 8.75%
|
2,353 | 2,353 | ||||||
Senior secured bonds - maturing 2030 - 7.500%
(e)
|
500 | 500 | ||||||
Japanese yen denominated senior notes - maturing 2030 - 5.1325%
(d)
|
123 | - | ||||||
Japanese yen denominated term loans - maturing 2011 - variable, 2.2% and 3.3% weighted-average interest rate, respectively
(c)(d)
|
327 | 287 | ||||||
Term loans - maturing 2011 through 2014 - variable, 1.2% and 1.0% weighted-average interest rate, respectively
(c)
|
950 | 910 | ||||||
Fair value swap
|
3 | 14 | ||||||
Unamortized discount
|
(8 | ) | (3 | ) | ||||
Total long-term debt of Capital Holdings
|
7,951 | 6,711 | ||||||
Less current maturities of long-term debt
|
1,485 | 200 | ||||||
Long-term debt of Capital Holdings, excluding current maturities
|
6,466 | 6,511 | ||||||
NextEra Energy Resources:
|
||||||||
Senior secured limited recourse bonds and notes - maturing 2013 through 2037 - 5.608% to 7.59%
|
2,652 | 2,488 | ||||||
Other long-term debt - maturing 2012 through 2028 - primarily limited recourse and variable, 2.6% and 2.4% weighted-average interest rates, respectively
(c)(d)
|
2,521 | 1,833 | ||||||
Canadian revolving credit facility - maturing 2013 - variable, 1.3%
(c)
|
82 | - | ||||||
Unamortized premium
|
- | 1 | ||||||
Total long-term debt of NextEra Energy Resources
|
5,255 | 4,322 | ||||||
Less current maturities of long-term debt
|
390 | 327 | ||||||
Long-term debt of NextEra Energy Resources, excluding current maturities
|
4,865 | 3,995 | ||||||
Total long-term debt
|
$ | 18,013 | $ | 16,300 |
(a)
|
Principal on the storm-recovery bonds is due on the final maturity date (the date by which the principal must be repaid to prevent a default) for each tranche, however, it began being paid semiannually and sequentially on February 1, 2008, when the first semiannual interest payment became due.
|
(b)
|
Tax exempt bonds that permit individual bond holders to tender the bonds for purchase at any time prior to maturity. In the event bonds are tendered for purchase, they would be remarketed by a designated remarketing agent in accordance with the related indenture. If the remarketing is unsuccessful, FPL would be required to purchase the tax exempt bonds. As of December 31, 2010, all tax exempt bonds tendered for purchase have been successfully remarketed. FPL's bank revolving lines of credit are available to support the purchase of tax exempt bonds.
|
(c)
|
Variable rate is based on an underlying index plus a margin.
|
(d)
|
Interest rate swap agreements have been entered into for the majority of these debt issuances.
|
(e)
|
Issued by a wholly-owned subsidiary of Capital Holdings and collateralized by a third-party note receivable held by that subsidiary. See Note 5.
|
FPL
|
NextEra Energy Resources
|
NextEra Energy
|
|||||||
(millions)
|
|||||||||
Balance, December 31, 2008
|
$
|
1,743
|
$
|
540
|
$
|
2,283
|
|||
Liabilities incurred
|
-
|
4
|
4
|
||||||
Accretion expense
|
96
|
36
|
132
|
||||||
Revision in estimated cash flows - net
|
(6
|
)
|
5
|
(1
|
)
|
||||
Balance, December 31, 2009
|
1,833
|
585
|
2,418
|
||||||
Liabilities incurred
|
-
|
3
|
3
|
||||||
Accretion expense
|
101
|
36
|
137
|
||||||
Liabilities settled
|
-
|
(1
|
)
|
(1
|
)
|
||||
Revision in estimated cash flows - net
|
(851
|
)
(a)
|
(67
|
)
(b)
|
(918
|
)
|
|||
Balance, December 31, 2010
|
$
|
1,083
|
$
|
556
|
$
|
1,639
|
(a)
|
Primarily reflects the effect of a decrease in the escalation rates used to determine the ultimate projected costs of decommissioning FPL's nuclear units and lower costs due to the expected future reimbursement by the DOE of certain spent fuel storage costs as stipulated by a spent fuel settlement agreement.
|
(b)
|
Primarily reflects the effect of revised probability assessments regarding when assets will be retired and ultimately decommissioned and lower costs due to the expected future reimbursement by the DOE of certain spent fuel storage costs as stipulated by a spent fuel settlement agreement.
|
FPL
|
NextEra Energy Resources
|
NextEra Energy
|
||||||
(millions)
|
||||||||
Balance, December 31, 2010
|
$
|
2,512
|
$
|
1,105
|
$
|
3,617
|
||
Balance, December 31, 2009
|
$
|
2,285
|
$
|
982
|
$
|
3,267
|
2011
|
2012
|
2013
|
2014
|
2015
|
Total
|
|||||||||||||||||||
(millions)
|
||||||||||||||||||||||||
FPL:
|
||||||||||||||||||||||||
Generation:
(a)
|
||||||||||||||||||||||||
New
(b)(c)
|
$ | 1,520 | $ | 1,870 | $ | 500 | $ | 105 | $ | - | $ | 3,995 | ||||||||||||
Existing
|
655 | 570 | 610 | 665 | 490 | 2,990 | ||||||||||||||||||
Transmission and distribution
|
720 | 870 | 820 | 760 | 840 | 4,010 | ||||||||||||||||||
Nuclear fuel
|
260 | 170 | 255 | 205 | 220 | 1,110 | ||||||||||||||||||
General and other
|
120 | 145 | 95 | 120 | 105 | 585 | ||||||||||||||||||
Total
|
$ | 3,275 | $ | 3,625 | $ | 2,280 | $ | 1,855 | $ | 1,655 | $ | 12,690 | ||||||||||||
NextEra Energy Resources:
|
||||||||||||||||||||||||
Wind
(d)
|
$ | 505 | $ | 30 | $ | 10 | $ | 5 | $ | - | $ | 550 | ||||||||||||
Solar
(e)
|
955 | 885 | 420 | 75 | - | 2,335 | ||||||||||||||||||
Nuclear
(f)
|
585 | 275 | 250 | 250 | 265 | 1,625 | ||||||||||||||||||
Natural gas
|
140 | 35 | 65 | 40 | 120 | 400 | ||||||||||||||||||
Other
(g)
|
85 | 75 | 50 | 60 | 50 | 320 | ||||||||||||||||||
Total
|
$ | 2,270 | $ | 1,300 | $ | 795 | $ | 430 | $ | 435 | $ | 5,230 | ||||||||||||
Corporate and Other
(h)
|
$ | 400 | $ | 490 | $ | 70 | $ | 30 | $ | 30 | $ | 1,020 |
(a)
|
Includes AFUDC of approximately $49 million, $76 million, $79 million, $29 million and $3 million in 2011 to 2015, respectively.
|
(b)
|
Includes land, generating structures, transmission interconnection and integration and licensing.
|
(c)
|
Includes projects that have received FPSC approval. Includes pre-construction costs and carrying charges (equal to a pretax AFUDC rate) on construction costs recoverable through the capacity clause of approximately $98 million, $75 million and $24 million in 2011 to 2013, respectively. Excludes capital expenditures for the construction costs for the two additional nuclear units at FPL's Turkey Point site beyond what is required to receive an NRC license for each unit.
|
(d)
|
Consists of capital expenditures for planned new wind projects that have received applicable internal approvals and related transmission. NextEra Energy Resources plans to add new wind generation of approximately 3,500 mw to 5,000 mw in 2010 through 2014, including 754 mw added in 2010 and approximately 700 mw to 1,000 mw in 2011, at a total cost of approximately $7 billion to $10 billion.
|
(e)
|
Consists of capital expenditures for planned new solar projects that have received applicable internal approvals and related transmission. NextEra Energy Resources plans to add new solar generation of approximately 400 mw to 600 mw in 2010 through 2014, including 5 mw added in 2010, at a total cost of approximately $3 billion to $4 billion.
|
(f)
|
Includes nuclear fuel.
|
(g)
|
Consists of capital expenditures that have received applicable internal approvals. NextEra Energy Resources plans to add natural gas infrastructure projects totaling approximately $400 million to $600 million in 2010 through 2014.
|
(h)
|
Consists of capital expenditures that have received applicable internal approvals and includes AFUDC of approximately $9 million, $41 million and $18 million in 2011 to 2013, respectively.
|
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
|||||||||||||||||||
FPL:
|
(millions)
|
|||||||||||||||||||||||
Capacity payments:
(a)
|
||||||||||||||||||||||||
Qualifying facilities
|
$ | 270 | $ | 290 | $ | 270 | $ | 275 | $ | 280 | $ | 2,605 | ||||||||||||
JEA and Southern subsidiaries
|
$ | 210 | $ | 210 | $ | 205 | $ | 185 | $ | 160 | $ | 195 | ||||||||||||
Other electricity suppliers
|
$ | 10 | $ | 5 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Minimum payments, at projected prices:
|
||||||||||||||||||||||||
Natural gas, including transportation and storage
(b)
|
$ | 2,185 | $ | 1,130 | $ | 575 | $ | 570 | $ | 550 | $ | 7,470 | ||||||||||||
Oil
(b)
|
$ | 150 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Coal
(b)
|
$ | 90 | $ | 70 | $ | 60 | $ | 5 | $ | - | $ | - | ||||||||||||
NextEra Energy Resources
(c)
|
$ | 1,250 | $ | 225 | $ | 180 | $ | 165 | $ | 165 | $ | 830 |
(a)
|
Capacity payments under these contracts, substantially all of which are recoverable through the capacity clause, totaled approximately $537 million, $603 million and $584 million for the years ended December 31, 2010, 2009 and 2008, respectively. Energy payments under these contracts, which are recoverable through the fuel clause, totaled approximately $434 million, $439 million and $510 million for the years ended December 31, 2010, 2009 and 2008, respectively.
|
(b)
|
Recoverable through the fuel clause.
|
(c)
|
Includes termination payments associated with wind turbine contracts for projects that have not yet received applicable internal approvals.
|
2010
|
2009
|
2008
|
|||||||||||||||||||||||||||||||||||||
FPL
|
NextEra
Energy
Resources
(a)
|
Corp.
and
Other
|
Total
|
FPL
|
NextEra
Energy
Resources
(a)(c)
|
Corp.
and
Other
(c)
|
Total
|
FPL
|
NextEra
Energy
Resources
(a)(c)
|
Corp.
and
Other
(c)
|
Total
|
||||||||||||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||||||||||||||||
Operating revenues
|
$
|
10,485
|
$
|
4,636
|
$
|
196
|
$
|
15,317
|
$
|
11,491
|
$
|
3,997
|
$
|
155
|
$
|
15,643
|
$
|
11,649
|
$
|
4,570
|
$
|
191
|
$
|
16,410
|
|||||||||||||||
Operating expenses
|
$
|
8,636
|
$
|
3,286
|
$
|
152
|
$
|
12,074
|
$
|
9,910
|
$
|
3,024
|
$
|
115
|
$
|
13,049
|
$
|
10,120
|
$
|
3,305
|
$
|
160
|
$
|
13,585
|
|||||||||||||||
Interest expense
|
$
|
361
|
$
|
515
|
$
|
103
|
$
|
979
|
$
|
318
|
$
|
460
|
$
|
71
|
$
|
849
|
$
|
334
|
$
|
418
|
$
|
61
|
$
|
813
|
|||||||||||||||
Interest income
|
$
|
-
|
$
|
21
|
$
|
70
|
$
|
91
|
$
|
1
|
$
|
23
|
$
|
54
|
$
|
78
|
$
|
11
|
$
|
27
|
$
|
34
|
$
|
72
|
|||||||||||||||
Depreciation and amortization
|
$
|
1,008
|
$
|
778
|
$
|
21
|
$
|
1,807
|
$
|
1,097
|
$
|
651
|
$
|
17
|
$
|
1,765
|
$
|
860
|
$
|
565
|
$
|
17
|
$
|
1,442
|
|||||||||||||||
Equity in earnings of equity method investees
|
$
|
-
|
$
|
58
|
$
|
-
|
$
|
58
|
$
|
-
|
$
|
52
|
$
|
-
|
$
|
52
|
$
|
-
|
$
|
93
|
$
|
-
|
$
|
93
|
|||||||||||||||
Income tax expense (benefit)
(b)
|
$
|
580
|
$
|
(11
|
)
|
$
|
(37
|
)
|
$
|
532
|
$
|
473
|
$
|
(158
|
)
|
$
|
12
|
$
|
327
|
$
|
443
|
$
|
27
|
$
|
(20
|
)
|
$
|
450
|
|||||||||||
Net income (loss)
|
$
|
945
|
$
|
980
|
$
|
32
|
$
|
1,957
|
$
|
831
|
$
|
759
|
$
|
25
|
$
|
1,615
|
$
|
789
|
$
|
831
|
$
|
19
|
$
|
1,639
|
|||||||||||||||
Capital expenditures, independent power and other investments and nuclear fuel purchases
|
$
|
2,706
|
$
|
3,072
|
$
|
68
|
$
|
5,846
|
$
|
2,717
|
$
|
3,235
|
$
|
54
|
$
|
6,006
|
$
|
2,367
|
$
|
2,829
|
$
|
40
|
$
|
5,236
|
|||||||||||||||
Property, plant and equipment
|
$
|
32,423
|
$
|
21,304
|
$
|
494
|
$
|
54,221
|
$
|
30,982
|
$
|
18,844
|
$
|
343
|
$
|
50,169
|
$
|
28,972
|
$
|
16,268
|
$
|
288
|
$
|
45,528
|
|||||||||||||||
Accumulated depreciation and amortization
|
$
|
10,871
|
$
|
4,073
|
$
|
202
|
$
|
15,146
|
$
|
10,578
|
$
|
3,341
|
$
|
172
|
$
|
14,091
|
$
|
10,189
|
$
|
2,771
|
$
|
157
|
$
|
13,117
|
|||||||||||||||
Total assets
|
$
|
28,698
|
$
|
22,389
|
$
|
1,907
|
$
|
52,994
|
$
|
26,812
|
$
|
20,136
|
$
|
1,510
|
$
|
48,458
|
$
|
26,175
|
$
|
17,157
|
$
|
1,489
|
$
|
44,821
|
|||||||||||||||
Investment in equity method investees
|
$
|
-
|
$
|
217
|
$
|
10
|
$
|
227
|
$
|
-
|
$
|
173
|
$
|
10
|
$
|
183
|
$
|
-
|
$
|
189
|
$
|
9
|
$
|
198
|
(a)
|
Interest expense allocated from Capital Holdings to NextEra Energy Resources is based on a deemed capital structure of 70% debt. For this purpose, the deferred credit associated with differential membership interests sold by NextEra Energy Resources' subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate and Other.
|
(b)
|
NextEra Energy Resources' tax expense (benefit) includes PTCs that were recognized based on its tax sharing agreement with NextEra Energy. See Note 1 - Income Taxes.
|
(c)
|
Segment information restated for the changes discussed above.
|
Year Ended
December 31, 2010
|
Year Ended
December 31, 2009
|
Year Ended
December 31, 2008
|
||||||||||||||||||||||||||||||||||||||||||||||
NextEra
Energy
(Guaran-
tor)
|
Capital
Holdings
|
Other
(a)
|
NextEra
Energy
Consoli-
dated
|
NextEra
Energy
(Guaran-
tor)
|
Capital
Holdings
|
Other
(a)
|
NextEra
Energy
Consoli-
dated
|
NextEra
Energy
(Guaran-
tor)
|
Capital
Holdings
|
Other
(a)
|
NextEra
Energy
Consoli-
dated
|
|||||||||||||||||||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues
|
$ | - | $ | 4,843 | $ | 10,474 | $ | 15,317 | $ | - | $ | 4,164 | $ | 11,479 | $ | 15,643 | $ | - | $ | 4,770 | $ | 11,640 | $ | 16,410 | ||||||||||||||||||||||||
Operating expenses
|
(4 | ) | (3,446 | ) | (8,624 | ) | (12,074 | ) | - | (3,151 | ) | (9,898 | ) | (13,049 | ) | - | (3,474 | ) | (10,111 | ) | (13,585 | ) | ||||||||||||||||||||||||||
Interest expense
|
(15 | ) | (618 | ) | (346 | ) | (979 | ) | (17 | ) | (531 | ) | (301 | ) | (849 | ) | (18 | ) | (479 | ) | (316 | ) | (813 | ) | ||||||||||||||||||||||||
Other income (deductions) - net
|
1,947 | 188 | (1,910 | ) | 225 | 1,632 | 160 | (1,595 | ) | 197 | 1,663 | 44 | (1,630 | ) | 77 | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes
|
1,928 | 967 | (406 | ) | 2,489 | 1,615 | 642 | (315 | ) | 1,942 | 1,645 | 861 | (417 | ) | 2,089 | |||||||||||||||||||||||||||||||||
Income tax expense (benefit)
|
(29 | ) | (19 | ) | 580 | 532 | - | (145 | ) | 472 | 327 | 6 | 2 | 442 | 450 | |||||||||||||||||||||||||||||||||
Net income (loss)
|
$ | 1,957 | $ | 986 | $ | (986 | ) | $ | 1,957 | $ | 1,615 | $ | 787 | $ | (787 | ) | $ | 1,615 | $ | 1,639 | $ | 859 | $ | (859 | ) | $ | 1,639 |
(a)
|
Represents FPL and consolidating adjustments.
|
(a)
|
Represents FPL and consolidating adjustments.
|
March 31
(a)
|
June 30
(a)
|
September 30
(a)
|
December 31
(a)
|
|||||||||||||||||
(millions, except per share amounts)
|
||||||||||||||||||||
NEXTERA ENERGY:
|
||||||||||||||||||||
2010
|
||||||||||||||||||||
Operating revenues
(b)
|
$
|
3,622
|
$
|
3,591
|
$
|
4,691
|
$
|
3,413
|
||||||||||||
Operating income
(b)
|
$
|
939
|
$
|
709
|
$
|
1,125
|
$
|
469
|
||||||||||||
Net income
(b)
|
$
|
556
|
$
|
417
|
$
|
720
|
$
|
263
|
||||||||||||
Earnings per share
(c)
|
$
|
1.36
|
$
|
1.02
|
$
|
1.75
|
$
|
0.64
|
||||||||||||
Earnings per share - assuming dilution
(c)
|
$
|
1.36
|
$
|
1.01
|
$
|
1.74
|
$
|
0.63
|
||||||||||||
Dividends per share
|
$
|
0.50
|
$
|
0.50
|
$
|
0.50
|
$
|
0.50
|
||||||||||||
High-low common stock sales prices
|
$
|
53.75
|
-
|
45.29
|
$
|
53.50
|
-
|
47.96
|
$
|
55.98
|
-
|
48.44
|
$
|
56.26
|
-
|
50.00
|
||||
2009
|
||||||||||||||||||||
Operating revenues
(b)
|
$
|
3,705
|
$
|
3,811
|
$
|
4,473
|
$
|
3,655
|
||||||||||||
Operating income
(b)
|
$
|
583
|
$
|
605
|
$
|
849
|
$
|
557
|
||||||||||||
Net income
(b)
|
$
|
364
|
$
|
370
|
$
|
533
|
$
|
349
|
||||||||||||
Earnings per share
(c)
|
$
|
0.90
|
$
|
0.92
|
$
|
1.32
|
$
|
0.86
|
||||||||||||
Earnings per share - assuming dilution
(c)
|
$
|
0.90
|
$
|
0.91
|
$
|
1.31
|
$
|
0.85
|
||||||||||||
Dividends per share
|
$
|
0.4725
|
$
|
0.4725
|
$
|
0.4725
|
$
|
0.4725
|
||||||||||||
High-low common stock sales prices
|
$
|
53.99
|
-
|
41.48
|
$
|
59.00
|
-
|
49.70
|
$
|
60.61
|
-
|
53.13
|
$
|
56.57
|
-
|
48.55
|
||||
FPL:
|
||||||||||||||||||||
2010
|
||||||||||||||||||||
Operating revenues
(b)
|
$
|
2,328
|
$
|
2,580
|
$
|
3,116
|
$
|
2,461
|
||||||||||||
Operating income
(b)
|
$
|
393
|
$
|
501
|
$
|
584
|
$
|
371
|
||||||||||||
Net income
(b)
|
$
|
191
|
$
|
265
|
$
|
308
|
$
|
181
|
||||||||||||
2009
|
||||||||||||||||||||
Operating revenues
(b)
|
$
|
2,573
|
$
|
2,864
|
$
|
3,301
|
$
|
2,753
|
||||||||||||
Operating income
(b)
|
$
|
262
|
$
|
396
|
$
|
554
|
$
|
369
|
||||||||||||
Net income
(b)
|
$
|
127
|
$
|
213
|
$
|
306
|
$
|
186
|
(a)
|
In the opinion of NextEra Energy and FPL, all adjustments, which consist of normal recurring accruals necessary to present a fair statement of the amounts shown for such periods, have been made. Results of operations for an interim period generally will not give a true indication of results for the year.
|
(b)
|
The sum of the quarterly amounts may not equal the total for the year due to rounding.
|
(c)
|
The sum of the quarterly amounts may not equal the total for the year due to rounding and changes in weighted-average number of common shares outstanding.
|
(a)
|
Management's Annual Report on Internal Control Over Financial Reporting
See Item 8. Financial Statements and Supplementary Data.
|
(b)
|
Attestation Report of the Independent Registered Public Accounting Firm
See Item 8. Financial Statements and Supplementary Data.
|
(c)
|
Changes in Internal Control Over Financial Reporting
|
NextEra Energy and FPL are continuously seeking to improve the efficiency and effectiveness of their operations and of their internal controls. This results in refinements to processes throughout NextEra Energy and FPL. However, there has been no change in NextEra Energy's or FPL's internal control over financial reporting that occurred during NextEra Energy's and FPL's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, NextEra Energy's or FPL's internal control over financial reporting.
|
March 31,
2010
|
June 30,
2010
|
September 30,
2010
|
||||||||||
(millions)
|
||||||||||||
NEXTERA ENERGY:
|
||||||||||||
Proceeds from sale of securities in special use funds:
|
||||||||||||
As reported
|
$ | 1,900 | $ | 3,063 | $ | 4,092 | ||||||
As restated
|
$ | 2,563 | $ | 4,138 | $ | 5,350 | ||||||
Purchases of securities in special use funds:
|
||||||||||||
As reported
|
$ | 1,937 | $ | 3,123 | $ | 4,177 | ||||||
As restated
|
$ | 2,600 | $ | 4,198 | $ | 5,435 | ||||||
FPL:
|
||||||||||||
Proceeds from sale of securities in special use funds:
|
||||||||||||
As reported
|
$ | 1,608 | $ | 2,425 | $ | 3,051 | ||||||
As restated
|
$ | 2,199 | $ | 3,313 | $ | 4,088 | ||||||
Purchases of securities in special use funds:
|
||||||||||||
As reported
|
$ | 1,639 | $ | 2,472 | $ | 3,114 | ||||||
As restated
|
$ | 2,230 | $ | 3,360 | $ | 4,151 |
2010
|
2009
|
||||
Audit fees
(a)
|
$
|
2,724,000
|
$
|
2,706,000
|
|
Audit-related fees
(b)
|
423,000
|
252,000
|
|||
Tax fees
(c)
|
33,000
|
30,000
|
|||
All other fees
(d)
|
197,000
|
4,000
|
|||
Total
|
$
|
3,377,000
|
$
|
2,992,000
|
(a)
|
Audit fees consist of fees billed for professional services rendered for the audit of FPL's and NextEra Energy's annual consolidated financial statements for the fiscal year, the reviews of the financial statements included in FPL's and NextEra Energy's Quarterly Reports on Form 10-Q for the fiscal year and the audit of the effectiveness of internal control over financial reporting, comfort letters, consents, and other services related to SEC matters, services in connection with annual and semi-annual filings of NextEra Energy's financial statements with the Japanese Ministry of Finance and accounting consultations to the extent necessary for Deloitte & Touche to fulfill its responsibility under Public Company Accounting Oversight Board standards.
|
(b)
|
Audit-related fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of FPL's and NextEra Energy's consolidated financial statements and are not reported under audit fees. These fees primarily related to audits of subsidiary financial statements, comfort letters, consents and other services related to subsidiary (non-SEC registrant) financing activities, consultation on accounting standards and on transactions, agreed-upon procedures and examinations related to applications for government grants.
|
(c)
|
Tax fees consist of fees billed for professional services rendered for tax compliance, tax advice and tax planning. In 2010 and 2009, all tax fees paid related to tax compliance services.
|
(d)
|
All other fees consist of fees for products and services other than the services reported under the other named categories. In 2010, these fees related to training, the review of the Smart Grid Grant process and the review of Enterprise Risk Management reporting. In 2009, these fees related to the use of data extraction software.
|
Page(s)
|
|||
(a)
|
1.
|
Financial Statements
|
|
Management's Report on Internal Control Over Financial Reporting
|
58
|
||
Attestation Report of Independent Registered Public Accounting Firm
|
59
|
||
Report of Independent Registered Public Accounting Firm
|
60
|
||
NextEra Energy:
|
|||
Consolidated Statements of Income
|
61
|
||
Consolidated Balance Sheets
|
62
|
||
Consolidated Statements of Cash Flows
|
63
|
||
Consolidated Statements of Common Shareholders' Equity
|
64
|
||
FPL:
|
|||
Consolidated Statements of Income
|
65
|
||
Consolidated Balance Sheets
|
66
|
||
Consolidated Statements of Cash Flows
|
67
|
||
Consolidated Statements of Common Shareholder's Equity
|
68
|
||
Notes to Consolidated Financial Statements
|
69 - 110
|
||
2.
|
Financial Statement Schedules - Schedules are omitted as not applicable or not required.
|
||
3.
|
Exhibits (including those incorporated by reference)
|
||
Certain exhibits listed below refer to "FPL Group" and "FPL Group Capital," and were effective prior to the change of the name FPL Group, Inc. to NextEra Energy, Inc., and of the name FPL Group Capital Inc to NextEra Energy Capital Holdings, Inc., during 2010.
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*3(i)a
|
Restated Articles of Incorporation of NextEra Energy (filed as Exhibit 3(i) to Form 10-Q for the quarter ended June 30, 2010, File No. 1-8841)
|
x
|
|||||
3(i)b
|
Restated Articles of Incorporation of FPL
|
x
|
|||||
*3(ii)a
|
Amended and Restated Bylaws of NextEra Energy, as amended through May 21, 2010 (filed as Exhibit 3(ii) to Form 10-Q for the quarter ended June 30, 2010, File No. 1-8841)
|
x
|
|||||
*3(ii)b
|
Amended and Restated Bylaws of FPL, as amended through October 17, 2008 (filed as Exhibit 3(ii)b to Form 10-Q for the quarter ended September 30, 2008, File No. 2-27612)
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*4(a)
|
Mortgage and Deed of Trust dated as of January 1, 1944, and One hundred and sixteen Supplements thereto, between FPL and Deutsche Bank Trust Company Americas, Trustee (filed as Exhibit B-3, File No. 2-4845; Exhibit 7(a), File No. 2-7126; Exhibit 7(a), File No. 2-7523; Exhibit 7(a), File No. 2-7990; Exhibit 7(a), File No. 2-9217; Exhibit 4(a)-5, File No. 2-10093; Exhibit 4(c), File No. 2-11491; Exhibit 4(b)-1, File No. 2-12900; Exhibit 4(b)-1, File No. 2-13255; Exhibit 4(b)-1, File No. 2-13705; Exhibit 4(b)-1, File No. 2-13925; Exhibit 4(b)-1, File No. 2-15088; Exhibit 4(b)-1, File No. 2-15677; Exhibit 4(b)-1, File No. 2-20501; Exhibit 4(b)-1, File No. 2-22104; Exhibit 2(c), File No. 2-23142; Exhibit 2(c), File No. 2-24195; Exhibit 4(b)-1, File No. 2-25677; Exhibit 2(c), File No. 2-27612; Exhibit 2(c), File No. 2-29001; Exhibit 2(c), File No. 2-30542; Exhibit 2(c), File No. 2-33038; Exhibit 2(c), File No. 2-37679; Exhibit 2(c), File No. 2-39006; Exhibit 2(c), File No. 2-41312; Exhibit 2(c), File No. 2-44234; Exhibit 2(c), File No. 2-46502; Exhibit 2(c), File No. 2-48679; Exhibit 2(c), File No. 2-49726; Exhibit 2(c), File No. 2-50712; Exhibit 2(c), File No. 2-52826; Exhibit 2(c), File No. 2-53272; Exhibit 2(c), File No. 2-54242; Exhibit 2(c), File No. 2-56228; Exhibits 2(c) and 2(d), File No. 2-60413; Exhibits 2(c) and 2(d), File No. 2-65701; Exhibit 2(c), File No. 2-66524; Exhibit 2(c), File No. 2-67239; Exhibit 4(c), File No. 2-69716; Exhibit 4(c), File No. 2-70767; Exhibit 4(b), File No. 2-71542; Exhibit 4(b), File No. 2-73799; Exhibits 4(c), 4(d) and 4(e), File No. 2-75762; Exhibit 4(c), File No. 2-77629; Exhibit 4(c), File No. 2-79557; Exhibit 99(a) to Post-Effective Amendment No. 5 to Form S-8, File No. 33-18669; Exhibit 99(a) to Post-Effective Amendment No. 1 to Form S-3, File No. 33-46076; Exhibit 4(b) to Form 10-K for the year ended December 31, 1993, File No. 1-3545; Exhibit 4(i) to Form 10-Q for the quarter ended June 30, 1994, File No. 1-3545; Exhibit 4(b) to Form 10-Q for the quarter ended June 30, 1995, File No. 1-3545; Exhibit 4(a) to Form 10-Q for the quarter ended March 31,1996, File No. 1-3545; Exhibit 4 to Form 10-Q for the quarter ended June 30, 1998, File No. 1-3545; Exhibit 4 to Form 10-Q for the quarter ended March 31, 1999, File No. 1-3545; Exhibit 4(f) to Form 10-K for the year ended December 31, 2000, File No. 1-3545; Exhibit 4(g) to Form 10-K for the year ended December 31, 2000, File No. 1-3545; Exhibit 4(o), File No. 333-102169; Exhibit 4(k) to Post-Effective Amendment No. 1 to Form S-3, File No. 333-102172; Exhibit 4(l) to Post-Effective Amendment No. 2 to Form S-3, File No. 333-102172; Exhibit 4(m) to Post-Effective Amendment No. 3 to Form S-3, File No. 333-102172; Exhibit 4(a) to Form 10-Q for the quarter ended September 30, 2004, File No. 2-27612; Exhibit 4(f) to Amendment No. 1 to Form S-3, File No. 333-125275; Exhibit 4(y) to Post-Effective Amendment No. 2 to Form S-3, File Nos. 333-116300, 333-116300-01 and 333-116300-02; Exhibit 4(z) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-116300, 333-116300-01 and 333-116300-02; Exhibit 4(b) to Form 10-Q for the quarter ended March 31, 2006, File No. 2-27612; Exhibit 4(a) to Form 8-K dated April 17, 2007, File No. 2-27612; Exhibit 4 to Form 8-K dated October 10, 2007, File No. 2-27612; Exhibit 4 to Form 8-K dated January 16, 2008, File No. 2-27612; Exhibit 4(a) to Form 8-K dated March 17, 2009, File No. 2-27612; Exhibit 4 to Form 8-K dated February 9, 2010, File No. 2-27612; and Exhibit 4 to Form 8-K dated December 9, 2010, File No. 2-27612)
|
x
|
x
|
||||
*4(b)
|
Indenture, dated as of June 1, 1999, between FPL Group Capital and The Bank of New York Mellon, as Trustee (filed as Exhibit 4(a) to Form 8-K dated July 16, 1999, File No. 1-8841)
|
x
|
|||||
*4(c)
|
Guarantee Agreement between FPL Group (as Guarantor) and The Bank of New York Mellon (as Guarantee Trustee) dated as of June 1, 1999 (filed as Exhibit 4(b) to Form 8-K dated July 16, 1999, File No. 1-8841)
|
x
|
|||||
*4(d)
|
Officer's Certificate of FPL Group Capital, dated August 18, 2006, creating the 5 5/8% Debentures, Series due September 1, 2011 (filed as Exhibit 4 to Form 8-K dated August 18, 2006, File No. 1-8841)
|
x
|
|||||
*4(e)
|
Officer's Certificate of FPL Group Capital dated June 17, 2008, creating the 5.35% Debentures, Series due June 15, 2013 (filed as Exhibit 4(a) to Form 8-K dated June 17, 2008, File No. 1-8841)
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*4(f)
|
Officer's Certificate of FPL Group Capital dated June 17, 2008, creating the Floating Rate Debentures, Series due June 17, 2011 (filed as Exhibit 4(b) to Form 8-K dated June 17, 2008, File No. 1-8841)
|
x
|
|||||
*4(g)
|
Officer's Certificate of FPL Group Capital dated December 12, 2008, creating the 7 7/8% Debentures, Series due December 15, 2015 (filed as Exhibit 4 to Form 8-K dated December 12, 2008, File No. 1-8841)
|
x
|
|||||
*4(h)
|
Officer's Certificate of FPL Group Capital, dated March 9, 2009, creating the 6.00% Debentures, Series due March 1, 2019 (filed as Exhibit 4 to Form 8-K dated March 9, 2009, file No. 1-8841)
|
x
|
|||||
*4(i)
|
Officer's Certificate of FPL Group Capital, dated May 26, 2009, creating the Series C Debentures due June 1, 2014 (filed as Exhibit 4(c) to Form 8-K dated May 22, 2009, File No. 1-8841)
|
x
|
|||||
*4(j)
|
Officer's Certificate of FPL Group Capital dated November 10, 2009, creating the Floating Rate Debentures, Series due November 9, 2012 (filed as Exhibit 4 to Form 8-K dated November 10, 2009, File No. 1-8841)
|
x
|
|||||
*4(k)
|
Officer's Certificate of FPL Group Capital dated May 18, 2010, creating the Debentures, 2.55% Series due November 15, 2013 (filed as Exhibit 4 to Form 8-K dated May 18, 2010, File No. 1-8841)
|
x
|
|||||
*4(l)
|
Officer's Certificate of FPL Group Capital, dated August 31, 2010, creating the Debentures, 2.60% Series due September 1, 2015 (filed as Exhibit 4 to Form 8-K dated August 31, 2010, File No. 1-8841)
|
x
|
|||||
*4(m)
|
Officer's Certificate of FPL Group Capital, dated September 21, 2010, creating the Series D Debentures due September 1, 2015 (filed as Exhibit 4(c) to Form 8-K dated September 15, 2010, File No. 1-8841)
|
x
|
|||||
*4(n)
|
Indenture (For Unsecured Subordinated Debt Securities relating to Trust Securities) dated as of March 1, 2004 among FPL Group Capital, FPL Group (as Guarantor) and The Bank of New York Mellon (as Trustee) (filed as Exhibit 4(au) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-102173, 333-102173-01, 333-102173-02 and 333-102173-03)
|
x
|
|||||
*4(o)
|
Preferred Trust Securities Guarantee Agreement between FPL Group (as Guarantor) and The Bank of New York Mellon (as Guarantee Trustee) relating to FPL Group Capital Trust I, dated as of March 15, 2004 (filed as Exhibit 4(aw) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-102173, 333-102173-01, 333-102173-02 and 333-102173-03)
|
x
|
|||||
*4(p)
|
Amended and Restated Trust Agreement relating to FPL Group Capital Trust I, dated as of March 15, 2004 (filed as Exhibit 4(at) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-102173, 333-102173-01, 333-102173-02 and 333-102173-03)
|
x
|
|||||
*4(q)
|
Agreement as to Expenses and Liabilities of FPL Group Capital Trust I, dated as of March 15, 2004 (filed as Exhibit 4(ax) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-102173, 333-102173-01, 333-102173-02 and 333-102173-03)
|
x
|
|||||
*4(r)
|
Officer's Certificate of FPL Group Capital and FPL Group, dated March 15, 2004, creating the 5 7/8% Junior Subordinated Debentures, Series due March 15, 2044 (filed as Exhibit 4(av) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-102173, 333-102173-01, 333-102173-02 and 333-102173-03)
|
x
|
|||||
*4(s)
|
Indenture (For Unsecured Subordinated Debt Securities) dated as of September 1, 2006, among FPL Group Capital, FPL Group (as Guarantor) and The Bank of New York Mellon (as Trustee) (filed as Exhibit 4(a) to Form 8-K dated September 19, 2006, File No. 1-8841)
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*4(t)
|
Officer's Certificate of FPL Group Capital and FPL Group dated September 19, 2006, creating the Series A Enhanced Junior Subordinated Debentures due 2066 (filed as Exhibit 4(b) to Form 8-K dated September 19, 2006, File No. 1-8841)
|
x
|
|||||
*4(u)
|
Officer's Certificate of FPL Group Capital and FPL Group dated September 19, 2006, creating the Series B Enhanced Junior Subordinated Debentures due 2066 (filed as Exhibit 4(c) to Form 8-K dated September 19, 2006, File No. 1-8841)
|
x
|
|||||
*4(v)
|
Replacement Capital Covenant dated September 19, 2006 by FPL Group Capital and FPL Group relating to FPL Group Capital's Series A and Series B Enhanced Junior Subordinated Debentures due 2066 (filed as Exhibit 4(d) to Form 8-K dated September 19, 2006, File No. 1-8841)
|
x
|
|||||
*4(w)
|
Officer's Certificate of FPL Group Capital and FPL Group dated June 12, 2007, creating the Series C Junior Subordinated Debentures due 2067 (filed as Exhibit 4(a) to Form 8-K dated June 12, 2007, File No. 1-8841)
|
x
|
|||||
*4(x)
|
Replacement Capital Covenant, dated June 12, 2007, by FPL Group Capital and FPL Group relating to FPL Group Capital's Series C Junior Subordinated Debentures due 2067 (filed as Exhibit 4(b) to Form 8-K dated June 12, 2007, File No. 1-8841)
|
x
|
|||||
*4(y)
|
Officer's Certificate of FPL Group Capital and FPL Group dated September 17, 2007, creating the Series D Junior Subordinated Debentures due 2067 (filed as Exhibit 4(a) to Form 8-K dated September 17, 2007, File No. 1-8841)
|
x
|
|||||
*4(z)
|
Officer's Certificate of FPL Group Capital and FPL Group dated September 18, 2007, creating the Series E Junior Subordinated Debentures due 2067 (filed as Exhibit 4(b) to Form 8-K dated September 17, 2007, File No. 1-8841)
|
x
|
|||||
*4(aa)
|
Replacement Capital Covenant, dated September 18, 2007, by FPL Group Capital and FPL Group relating to FPL Group Capital's Series D and Series E Junior Subordinated Debentures due 2067 (filed as Exhibit 4(c) to Form 8-K dated September 17, 2007, File No. 1-8841)
|
x
|
|||||
*4(bb)
|
Officer's Certificate of FPL Group Capital and FPL Group, dated March 19, 2009, creating the Series F Junior Subordinated Debentures due 2069 (filed as Exhibit 4(b) to Form 8-K dated March 17, 2009, File No. 1-8841)
|
x
|
|||||
*4(cc)
|
Replacement Capital Covenant, dated March 19, 2009, by FPL Group Capital and FPL Group (filed as Exhibit 4(c) to Form 8-K dated March 17, 2009, File No. 1-8841)
|
x
|
|||||
*4(dd)
|
Indenture (for Securing Senior Secured Bonds, Series A), dated May 22, 2007, between FPL Recovery Funding LLC (as Issuer) and The Bank of New York Mellon (as Trustee and Securities Intermediary) (filed as Exhibit 4.1 to Form 8-K dated May 22, 2007 and filed June 1, 2007, File No. 333-141357)
|
x
|
|||||
*4(ee)
|
Purchase Contract Agreement, dated as of May 1, 2009, between FPL Group and The Bank of New York Mellon, as Purchase Contract Agent (filed as Exhibit 4(a) to Form 8-K dated May 22, 2009, File No. 1-8841)
|
x
|
|||||
*4(ff)
|
Pledge Agreement, dated as of May 1, 2009, among FPL Group, Deutsche Bank Trust Company Americas, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York Mellon, as Purchase Contract Agent and Trustee (filed as Exhibit 4(b) to Form 8-K dated May 22, 2009, File No. 1-8841)
|
x
|
|||||
*4(gg)
|
Purchase Contract Agreement, dated as of September 1, 2010, between NextEra Energy and The Bank of New York Mellon, as Purchase Contract Agent (filed as Exhibit 4(a) to Form 8-K dated September 15, 2010, File No. 1-8841)
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*4(hh)
|
Pledge Agreement, dated as of September 1, 2010, among NextEra Energy, Deutsche Bank Trust Company Americas, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York Mellon, as Purchase Contract Agent (filed as Exhibit 4(b) to Form 8-K dated September 15, 2010, File No. 1-8841)
|
x
|
|||||
*10(a)
|
FPL Group Supplemental Executive Retirement Plan, amended and restated effective April 1, 1997 (SERP) (filed as Exhibit 10(a) to Form 10-K for the year ended December 31, 1999, File No. 1-8841)
|
x
|
x
|
||||
*10(b)
|
FPL Group Supplemental Executive Retirement Plan, amended and restated effective January 1, 2005 (Restated SERP) (filed as Exhibit 10(b) to Form 8-K dated December 12, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(c)
|
Amendment Number 1 to the Restated SERP changing name to NextEra Energy, Inc. Supplemental Executive Retirement Plan (filed as Exhibit 10(b) to Form 10-Q for the quarter ended June 30, 2010, File No. 1-8841)
|
x
|
x
|
||||
*10(d)
|
Appendix A1 (revised as of January 1, 2010) to the Restated SERP (filed as Exhibit 10(e) to form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(e)
|
Appendix A2 (revised as of August 16, 2010) to the Restated SERP (filed as Exhibit 10(a) to Form 10-Q for the quarter ended September 30, 2010, File No. 1-8841)
|
x
|
x
|
||||
*10(f)
|
Amended and Restated Supplement to the Restated SERP as it applies to Lewis Hay, III effective January 1, 2005 (filed as Exhibit 10(c) to Form 8-K dated December 12, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(g)
|
Supplement to the SERP as it applies to Lewis Hay, III effective March 22, 2002 (filed as Exhibit 10(g) to Form 10-K for the year ended December 31, 2001, File No. 1-8841)
|
x
|
x
|
||||
*10(h)
|
Supplement to the Restated SERP relating to a special credit to certain executive officers and other officers effective February 15, 2008 (filed as Exhibit 10(g) to Form 10-K for the year ended December 31, 2007, File No. 1-8841)
|
x
|
x
|
||||
*10(i)
|
Supplement to the Restated SERP effective February 15, 2008 as it applies to Armando Pimentel, Jr. (filed as Exhibit 10(i) to Form 10-K for the year ended December 31, 2007, File No. 1-8841)
|
x
|
x
|
||||
*10(j)
|
Supplement to the SERP effective December 14, 2007 as it applies to Manoochehr K. Nazar (filed as Exhibit 10(j) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(k)
|
NextEra Energy (formerly known as FPL Group) Amended and Restated Long-Term Incentive Plan, most recently amended and restated on May 22, 2009 (filed as Exhibit 10(a) to Form 10-Q for the quarter ended June 30, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(l)
|
FPL Group Long-Term Incentive Plan of 1985, as amended (filed as Exhibit 99(h) to Post-Effective Amendment No. 5 to Form S-8, File No. 33-18669)
|
x
|
x
|
||||
*10(m)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Performance Share Award Agreement effective February 15, 2007 (filed as Exhibit 10(i) to Form 10-K for the year ended December 31, 2006, File No. 1-8841)
|
x
|
x
|
||||
*10(n)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Performance Share Award Agreement effective February 15, 2008 (filed as Exhibit 10(c) to Form 8-K dated February 15, 2008, File No. 1-8841)
|
x
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*10(o)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Performance Share Award Agreement effective February 13, 2009 with Christopher A. Bennett, Paul I. Cutler, Chris N. Froggatt, Joseph T. Kelliher, Robert L. McGrath and Antonio Rodriguez (filed as Exhibit 10(l) to Form 10-K for the year ended December 31, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(p)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Amended and Restated Performance Share Award Agreement effective December 10, 2009 with F. Mitchell Davidson, Lewis Hay, III, Manoochehr K. Nazar, Armando J. Olivera, Armando Pimentel, Jr., James L. Robo and Charles E. Sieving (filed as Exhibit 10(p) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(q)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Performance Share Award Agreement effective February 12, 2010 (filed as Exhibit 10(q) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(r)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Restricted Stock Award Agreement effective February 15, 2007 (filed as Exhibit 10(l) to Form 10-K for the year ended December 31, 2006, File No. 1-8841)
|
x
|
x
|
||||
*10(s)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Restricted Stock Award Agreement effective February 15, 2008 (filed as Exhibit 10(a) to Form 8-K dated February 15, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(t)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Restricted Stock Award Agreement effective February 13, 2009 (filed as Exhibit 10(q) to Form 10-K for the year ended December 31, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(u)
|
Form of Amendment to Restricted Stock Award Agreements under the FPL Group Amended and Restated Long-Term Incentive Plan executed March 2009 between FPL Group and each of Christopher A. Bennett, F. Mitchell Davidson, Lewis Hay, III, Robert L. McGrath, Armando J. Olivera, Armando Pimentel, Jr., James L. Robo and Antonio Rodriguez (filed as Exhibit 10(c) to Form 10-Q for the quarter ended March 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(v)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Restricted Stock Award Agreement effective February 12, 2010 (filed as Exhibit 10(w) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(w)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Stock Option Award - Non-Qualified Stock Option Agreement (filed as Exhibit 10(c) to Form 8-K dated December 29, 2004, File No. 1-8841)
|
x
|
x
|
||||
*10(x)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Stock Option Award - Non-Qualified Stock Option Agreement (filed as Exhibit 10(d) to Form 8-K dated December 29, 2004, File No. 1-8841)
|
x
|
x
|
||||
*10(y)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Stock Option Award - Non-Qualified Stock Option Agreement effective February 15, 2008 (filed as Exhibit 10(b) to Form 8-K dated February 15, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(z)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Stock Option Award - Non-Qualified Stock Option Agreement effective February 13, 2009 (filed as Exhibit 10(u) to Form 10-K for the year ended December 31, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(aa)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan - Non-Qualified Stock Option Agreement effective February 12, 2010 (filed as Exhibit 10(bb) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*10(bb)
|
Form of FPL Group Amended and Restated Long-Term Incentive Plan Amended and Restated Deferred Stock Award Agreement effective February 12, 2010 between FPL Group and each of Moray P. Dewhurst and James L. Robo (filed as Exhibit 10(dd) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(cc)
|
FPL Group Executive Annual Incentive Plan as amended and restated on December 12, 2008 (filed as Exhibit 10(a) to Form 8-K dated December 12, 2008, File No. 1-8841)
|
x
|
x
|
||||
10(dd)
|
NextEra Energy Deferred Compensation Plan effective January 1, 2005 as amended and restated through October 15, 2010
|
x
|
x
|
||||
*10(ee)
|
FPL Group Deferred Compensation Plan, amended and restated effective January 1, 2003 (filed as Exhibit 10(k) to Form 10-K for the year ended December 31, 2002, File No. 1-8841)
|
x
|
x
|
||||
*10(ff)
|
FPL Group Executive Long-Term Disability Plan effective January 1, 1995 (filed as Exhibit 10(g) to Form 10-K for the year ended December 31, 1995, File No. 1-8841)
|
x
|
x
|
||||
*10(gg)
|
FPL Group Amended and Restated Non-Employee Directors Stock Plan, as amended and restated October 13, 2006 (filed as Exhibit 10(b) to Form 10-Q for the quarter ended September 30, 2006, File No. 1-8841)
|
x
|
|||||
*10(hh)
|
FPL Group 2007 Non-Employee Directors Stock Plan (filed as Exhibit 99 to Form S-8, File No. 333-143739)
|
x
|
|||||
*10(ii)
|
FPL Group Non-Employee Director Compensation Summary effective January 1, 2010 (filed as Exhibit 10(ll) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
|||||
10(jj)
|
NextEra Energy Non-Employee Director Compensation Summary effective January 1, 2011
|
x
|
|||||
*10(kk)
|
Form of Amended and Restated Executive Retention Employment Agreement, as of December 12, 2008, between FPL Group and each of Christopher A. Bennett, Robert L. McGrath and Antonio Rodriguez (filed as Exhibit 10(g) to Form 8-K dated December 12, 2008, File No. 1-8841)
|
x
|
x
|
||||
*10(ll)
|
Form of Amended and Restated Executive Retention Employment Agreement effective December 10, 2009 between FPL Group and each of Lewis Hay, III, Moray P. Dewhurst, James L. Robo, Armando J. Olivera, F. Mitchell Davidson, Armando Pimentel, Jr., and Charles E. Sieving (filed as Exhibit 10(nn) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(mm)
|
Amended and Restated Employment Letter with Lewis Hay, III dated December 10, 2009 (filed as Exhibit 10(pp) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(nn)
|
Executive Retention Employment Agreement between FPL Group and Joseph T. Kelliher dated as of May 21, 2009 (filed as Exhibit 10(b) to Form 10-Q for the quarter ended June 30, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(oo)
|
Executive Retention Employment Agreement between FPL Group and Manoochehr K. Nazar dated as of January 1, 2010 (filed as Exhibit 10(rr) to Form 10-K for the year ended December 31, 2009, File No. 1-8841)
|
x
|
x
|
||||
*10(pp)
|
Executive Retention Employment Agreement between NextEra Energy and Shaun J. Francis dated as of August 16, 2010 (filed as Exhibit 10(b) to Form 10-Q for the quarter ended September 30, 2010, File No. 1-8841)
|
x
|
x
|
Exhibit
Number
|
Description
|
NextEra
Energy
|
FPL
|
||||
*10(qq)
|
Retention Agreement between FPL Group and Robert L. McGrath (filed as Exhibit 10(a) to Form 10-Q for the quarter ended June 30, 2010, File No. 1-8841)
|
x
|
x
|
||||
*10(rr)
|
Guarantee Agreement between FPL Group and FPL Group Capital, dated as of October 14, 1998 (filed as Exhibit 10(y) to Form 10-K for the year ended December 31, 2001, File No. 1-8841)
|
x
|
|||||
12(a)
|
Computation of Ratios
|
x
|
|||||
12(b)
|
Computation of Ratios
|
x
|
|||||
21
|
Subsidiaries of NextEra Energy
|
x
|
|||||
23
|
Consent of Independent Registered Public Accounting Firm
|
x
|
x
|
||||
31(a)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of NextEra Energy
|
x
|
|||||
31(b)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of NextEra Energy
|
x
|
|||||
31(c)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of FPL
|
x
|
|||||
31(d)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of FPL
|
x
|
|||||
32(a)
|
Section 1350 Certification of NextEra Energy
|
x
|
|||||
32(b)
|
Section 1350 Certification of FPL
|
x
|
|||||
101.INS
|
XBRL Instance Document
|
x
|
|||||
101.SCH
|
XBRL Schema Document
|
x
|
|||||
101.PRE
|
XBRL Presentation Linkbase Document
|
x
|
|||||
101.CAL
|
XBRL Calculation Linkbase Document
|
x
|
|||||
101.LAB
|
XBRL Label Linkbase Document
|
x
|
|||||
101.DEF
|
XBRL Definition Linkbase Document
|
x
|
JAMES L. ROBO
|
||
James L. Robo
President and Chief Operating Officer
|
LEWIS HAY, III
|
CHRIS N. FROGGATT
|
|
Lewis Hay, III
Chairman and Chief Executive Officer
and Director
(Principal Executive Officer)
|
Chris N. Froggatt
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
|
|
ARMANDO PIMENTEL, JR.
|
||
Armando Pimentel, Jr.
Executive Vice President, Finance
and Chief Financial Officer
(Principal Financial Officer)
|
ARMANDO J. OLIVERA
|
||
Armando J. Olivera
President and Chief Executive Officer
and Director
(Principal Executive Officer)
|
ARMANDO PIMENTEL, JR.
|
KIMBERLY OUSDAHL
|
|
Armando Pimentel, Jr.
Executive Vice President, Finance
and Chief Financial Officer and Director
(Principal Financial Officer)
|
Kimberly Ousdahl
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
|
LEWIS HAY, III
|
||
Lewis Hay, III
JAMES L. ROBO
|
||
James L. Robo
ANTONIO RODRIGUEZ
|
||
Antonio Rodriguez
|
ATTEST:
|
NEXTERA ENERGY, INC.
|
|||
By:
|
KATHLEEN M. SLATTERY
|
By:
|
SHAUN J. FRANCIS
|
|
Kathleen M. Slattery
Director
Executive Services and Compensation
|
Shaun J. Francis
Executive Vice President
Human Resources
|
|||
(Seal)
|
Annual Retainer
(payable quarterly in common stock or cash)
|
$50,000
|
Board or Committee meeting fee
|
$2,000/meeting
|
Audit Committee Chair retainer (annual)
(payable quarterly)
|
$15,000
|
Other Committee Chair retainer (annual)
(payable quarterly)
|
$10,000
|
Annual grant of restricted stock
(under 2007 Non-Employee Directors Stock Plan)
|
that number of shares determined by dividing $110,000 by closing price of NextEra Energy common stock on effective date of grant (rounded up to the nearest 10 shares)
|
Miscellaneous
|
- Travel and Accident Insurance (including spouse coverage)
|
- Certain directors accrue dividends and interest on the phantom stock units granted to them upon the termination of the Non-Employee Director Retirement Plan in 1996
|
|
- Travel and related expenses while on Board business, and actual administrative or similar expenses incurred for Board or Committee business, are paid or reimbursed by the Company Directors may travel on Company aircraft in accordance with the Company’s Aviation Policy (primarily to or from Board meetings and while on Board business; in limited circumstances for other reasons
if the Company would incur little if any incremental cost, space is available and the aircraft is already in use for another authorized purpose - may be accompanied by immediate family members when space is available).
|
|
- Directors may participate in the Company’s Deferred Compensation Plan.
|
|
- Directors may participate in the Company’s matching gift program, which matches gifts to educational institutions to a maximum of $10,000 per donor.
|
Years Ended December 31,
|
||||||||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
(millions of dollars)
|
||||||||||||||||||||
Earnings, as defined:
|
||||||||||||||||||||
Net income
|
$ | 1,957 | $ | 1,615 | $ | 1,639 | $ | 1,312 | $ | 1,281 | ||||||||||
Income taxes
|
532 | 327 | 450 | 368 | 397 | |||||||||||||||
Fixed charges included in the determination of net income, as below
|
1,025 | 899 | 859 | 799 | 732 | |||||||||||||||
Amortization of capitalized interest
|
21 | 17 | 15 | 12 | 11 | |||||||||||||||
Distributed income of equity method investees
|
74 | 69 | 124 | 175 | 104 | |||||||||||||||
Less: Equity in earnings of equity method investees
|
58 | 52 | 93 | 68 | 181 | |||||||||||||||
Total earnings, as defined
|
$ | 3,551 | $ | 2,875 | $ | 2,994 | $ | 2,598 | $ | 2,344 | ||||||||||
Fixed charges, as defined:
|
||||||||||||||||||||
Interest expense
|
$ | 979 | $ | 849 | $ | 813 | $ | 762 | $ | 706 | ||||||||||
Rental interest factor
|
32 | 28 | 28 | 23 | 15 | |||||||||||||||
Allowance for borrowed funds used during construction
|
14 | 22 | 18 | 14 | 11 | |||||||||||||||
Fixed charges included in the determination of net income
|
1,025 | 899 | 859 | 799 | 732 | |||||||||||||||
Capitalized interest
|
75 | 88 | 55 | 40 | 18 | |||||||||||||||
Total fixed charges, as defined
|
$ | 1,100 | $ | 987 | $ | 914 | $ | 839 | $ | 750 | ||||||||||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
3.23 | 2.91 | 3.28 | 3.10 | 3.13 |
(a)
|
NextEra Energy, Inc. has no preference equity securities outstanding; therefore, the ratio of earnings to fixed charges is the same as the ratio of earnings to combined fixed charges and preferred stock dividends.
|
Years Ended December 31,
|
||||||||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
(millions of dollars)
|
||||||||||||||||||||
Earnings, as defined:
|
||||||||||||||||||||
Net income
|
$ | 945 | $ | 831 | $ | 789 | $ | 836 | $ | 802 | ||||||||||
Income taxes
|
580 | 473 | 443 | 451 | 424 | |||||||||||||||
Fixed charges included in the determination of net income, as below
|
382 | 347 | 359 | 325 | 296 | |||||||||||||||
Total earnings, as defined
|
$ | 1,907 | $ | 1,651 | $ | 1,591 | $ | 1,612 | $ | 1,522 | ||||||||||
Fixed charges, as defined:
|
||||||||||||||||||||
Interest expense
|
$ | 361 | $ | 318 | $ | 334 | $ | 304 | $ | 278 | ||||||||||
Rental interest factor
|
8 | 7 | 7 | 7 | 7 | |||||||||||||||
Allowance for borrowed funds used during construction
|
13 | 22 | 18 | 14 | 11 | |||||||||||||||
Fixed charges included in the determination of net income
|
382 | 347 | 359 | 325 | 296 | |||||||||||||||
Capitalized interest
|
3 | 2 | - | - | - | |||||||||||||||
Total fixed charges, as defined
|
$ | 385 | $ | 349 | $ | 359 | $ | 325 | $ | 296 | ||||||||||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
4.95 | 4.73 | 4.43 | 4.96 | 5.14 |
(a)
|
Florida Power & Light Company has no preference equity securities outstanding; therefore, the ratio of earnings to fixed charges is the same as the ratio of earnings to combined fixed charges and preferred stock dividends.
|
Subsidiary
|
State or Jurisdiction
of Incorporation
|
|||
1.
|
Florida Power & Light Company (100%-owned)
|
Florida
|
||
2.
|
NextEra Energy Capital Holdings, Inc. (100%-owned)
|
Florida
|
||
3.
|
NextEra Energy Resources, LLC
(a)(b)
|
Delaware
|
||
4.
|
Palms Insurance Company, Limited
(b)
|
Cayman Islands
|
(a)
|
Includes 390 subsidiaries that operate in the United States and 39 subsidiaries that operate in foreign countries in the same line of business as NextEra Energy Resources, LLC.
|
(b)
|
100%-owned subsidiary of NextEra Energy Capital Holdings, Inc.
|
1.
|
I have reviewed this Form 10-K for the annual period ended December 31, 2010 of NextEra Energy, Inc. (the registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
LEWIS HAY, III
|
||
Lewis Hay, III
Chairman and Chief Executive Officer
of NextEra Energy, Inc.
|
1.
|
I have reviewed this Form 10-K for the annual period ended December 31, 2010 of NextEra Energy, Inc. (the registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
ARMANDO PIMENTEL, JR.
|
||
Armando Pimentel, Jr.
Executive Vice President, Finance
and Chief Financial Officer
of NextEra Energy, Inc.
|
1.
|
I have reviewed this Form 10-K for the annual period ended December 31, 2010 of Florida Power & Light Company (the registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
ARMANDO J. OLIVERA
|
||
Armando J. Olivera
President and Chief Executive Officer
of Florida Power & Light Company
|
1.
|
I have reviewed this Form 10-K for the annual period ended December 31, 2010 of Florida Power & Light Company (the registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
ARMANDO PIMENTEL, JR.
|
||
Armando Pimentel, Jr.
Executive Vice President, Finance
and Chief Financial Officer of
Florida Power & Light Company
|
(1)
|
The Annual Report on Form 10-K of NextEra Energy, Inc. (NextEra Energy) for the annual period ended December 31, 2010 (Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of NextEra Energy.
|
LEWIS HAY, III
|
||
Lewis Hay, III
Chairman and Chief Executive Officer
of NextEra Energy, Inc.
|
ARMANDO PIMENTEL, JR.
|
||
Armando Pimentel, Jr.
Executive Vice President, Finance and
Chief Financial Officer of NextEra Energy, Inc.
|
(1)
|
The Annual Report on Form 10-K of Florida Power & Light Company (FPL) for the annual period ended December 31, 2010 (Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of FPL.
|
ARMANDO J. OLIVERA
|
||
Armando J. Olivera
President and Chief Executive Officer of
Florida Power & Light Company
|
ARMANDO PIMENTEL, JR.
|
||
Armando Pimentel, Jr.
Executive Vice President, Finance
and Chief Financial Officer of
Florida Power & Light Company
|