|
|
|
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
|
|
59-0247775
|
|
|
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000
|
|
|
NextEra Energy, Inc. Yes
þ
No
o
Florida Power & Light Company Yes
þ
No
o
|
NextEra Energy, Inc. Yes
þ
No
o
Florida Power & Light Company Yes
þ
No
o
|
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
¨
|
|
|
Page No.
|
|
|
|
|
|
|
|
PART I - FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
PART II - OTHER INFORMATION
|
|
|
|
|
Item 5.
|
Other Information
|
|
|
|
|
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects may be adversely affected by the extensive regulation of their business.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected if they are unable to recover in a timely manner any significant amount of costs, a return on certain assets or an appropriate return on capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise.
|
•
|
Regulatory decisions that are important to NEE and FPL may be materially adversely affected by political, regulatory and economic factors.
|
•
|
FPL's use of derivative instruments could be subject to prudence challenges and, if found imprudent, could result in disallowances of cost recovery for such use by the Florida Public Service Commission (FPSC).
|
•
|
Any reductions to, or the elimination of, governmental incentives that support renewable energy, including, but not limited to, tax incentives, renewable portfolio standards (RPS) or feed-in tariffs, or the imposition of additional taxes or other assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development of new renewable energy projects, NextEra Energy Resources, LLC (NEER) abandoning the development of renewable energy projects, a loss of NEER's investments in renewable energy projects and reduced project returns, any of which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected as a result of new or revised laws, regulations or interpretations or other regulatory initiatives.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of its provisions regarding the regulation of over-the-counter (OTC) financial derivatives and make them applicable to NEE and FPL.
|
•
|
NEE and FPL are subject to numerous environmental laws and regulations that require capital expenditures, increase their cost of operations and may expose them to liabilities.
|
•
|
NEE's and FPL's business could be negatively affected by federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions.
|
•
|
Extensive federal regulation of the operations of NEE and FPL exposes NEE and FPL to significant and increasing compliance costs and may also expose them to substantial monetary penalties and other sanctions for compliance failures.
|
•
|
Changes in tax laws, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected due to adverse results of litigation.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could suffer if NEE and FPL do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget.
|
•
|
NEE and FPL may face risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede their development and operating activities.
|
•
|
The operation and maintenance of NEE's and FPL's electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities are subject to many operational risks, the consequences of which could have a
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects may be negatively affected by a lack of growth or slower growth in the number of customers or in customer usage.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather.
|
•
|
Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt NEE's and FPL's business, or the businesses of third parties, may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.
|
•
|
The ability of NEE and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NEE's and FPL's insurance coverage does not provide protection against all significant losses.
|
•
|
If supply costs necessary to provide NEER's full energy and capacity requirement services are not favorable, operating costs could increase and adversely affect NEE's business, financial condition, results of operations and prospects.
|
•
|
Due to the potential for significant volatility in market prices for fuel, electricity and renewable and other energy commodities, NEER'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 NEE's results of operations.
|
•
|
Sales of power on the spot market or on a short-term contractual basis may cause NEE's results of operations to be volatile.
|
•
|
Reductions in the liquidity of energy markets may restrict the ability of NEE to manage its operational risks, which, in turn, could negatively affect NEE's results of operations.
|
•
|
If price movements significantly or persistently deviate from historical behavior, NEE's and FPL's hedging and trading procedures and associated risk management tools may not protect against significant losses.
|
•
|
If power transmission or natural gas, nuclear fuel or other commodity transportation facilities are unavailable or disrupted, FPL's and NEER's ability to sell and deliver power or natural gas may be limited.
|
•
|
NEE and FPL are subject to credit and performance risk from customers, hedging counterparties and vendors.
|
•
|
NEE and FPL could recognize financial losses or a reduction in operating cash flows if a counterparty fails to perform or make payments in accordance with the terms of derivative contracts or if NEE or FPL is required to post margin cash collateral under derivative contracts.
|
•
|
NEE and FPL are highly dependent on sensitive and complex information technology systems, and any failure or breach of those systems could have a material adverse effect on their business, financial condition, results of operations and prospects.
|
•
|
NEE's and FPL's retail businesses are subject to the risk that sensitive customer data may be compromised, which could result in an adverse impact to their reputation and/or the results of operations of the retail business.
|
•
|
NEE and FPL could recognize financial losses as a result of volatility in the market values of derivative instruments and limited liquidity in OTC markets.
|
•
|
NEE and FPL may be adversely affected by negative publicity.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected if FPL is unable to maintain, negotiate or renegotiate franchise agreements on acceptable terms with municipalities and counties in Florida.
|
•
|
Increasing costs associated with health care plans may materially adversely affect NEE's and FPL's results of operations.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could be negatively affected by the lack of a qualified workforce or the loss or retirement of key employees.
|
•
|
NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected by work strikes or stoppages and increasing personnel costs.
|
•
|
NEE's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry.
|
•
|
The construction, operation and maintenance of NEE's and FPL's nuclear generation facilities involve environmental, health and financial risks that could result in fines or the closure of the facilities and in increased costs and capital expenditures.
|
•
|
In the event of an incident at any nuclear generation facility in the United States (U.S.) or at certain nuclear generation facilities in Europe, NEE 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.
|
•
|
U.S. Nuclear Regulatory Commission (NRC) orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require NEE and FPL to incur substantial operating and capital expenditures at their nuclear generation facilities.
|
•
|
The inability to operate any of NEER's or FPL's nuclear generation units through the end of their respective operating licenses could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
|
•
|
Various hazards posed to nuclear generation facilities, along with increased public attention to and awareness of such hazards, could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict and could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
|
•
|
NEE's and FPL's nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, and for other purposes. If planned outages last longer than anticipated or if there are unplanned outages, NEE's and FPL's results of operations and financial condition could be materially adversely affected.
|
•
|
Disruptions, uncertainty or volatility in the credit and capital markets may negatively affect NEE's and FPL's ability to fund their liquidity and capital needs and to meet their growth objectives, and can also adversely affect the results of operations and financial condition of NEE and FPL.
|
•
|
NEE's, NextEra Energy Capital Holdings, Inc.'s (NEECH) and FPL's inability to maintain their current credit ratings may adversely affect NEE's and FPL's liquidity and results of operations, limit the ability of NEE and FPL to grow their business, and increase interest costs.
|
•
|
NEE's and FPL's liquidity may be impaired if their creditors are unable to fund their credit commitments to the companies or to maintain their current credit ratings.
|
•
|
Poor market performance and other economic factors could affect NEE's and FPL's defined benefit pension plan's funded status, which may materially adversely affect NEE's and FPL's liquidity and results of operations.
|
•
|
Poor market performance and other economic factors could adversely affect the asset values of NEE's and FPL's nuclear decommissioning funds, which may materially adversely affect NEE's and FPL's liquidity and results of operations.
|
•
|
Certain of NEE's investments are subject to changes in market value and other risks, which may adversely affect NEE's liquidity and financial results.
|
•
|
NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to NEE.
|
•
|
NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if NEE is required to perform under guarantees of obligations of its subsidiaries.
|
•
|
Disruptions, uncertainty or volatility in the credit and capital markets may exert downward pressure on the market price of NEE's common stock.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
OPERATING REVENUES
|
$
|
3,843
|
|
|
$
|
4,382
|
|
|
$
|
10,881
|
|
|
$
|
11,476
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel, purchased power and interchange
|
1,526
|
|
|
1,911
|
|
|
3,943
|
|
|
4,872
|
|
||||
Other operations and maintenance
|
776
|
|
|
748
|
|
|
2,347
|
|
|
2,212
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
||||
Depreciation and amortization
|
467
|
|
|
496
|
|
|
1,121
|
|
|
1,236
|
|
||||
Taxes other than income taxes and other
|
325
|
|
|
316
|
|
|
855
|
|
|
859
|
|
||||
Total operating expenses
|
3,094
|
|
|
3,471
|
|
|
8,266
|
|
|
9,230
|
|
||||
OPERATING INCOME
|
749
|
|
|
911
|
|
|
2,615
|
|
|
2,246
|
|
||||
OTHER INCOME (DEDUCTIONS)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(259
|
)
|
|
(265
|
)
|
|
(795
|
)
|
|
(775
|
)
|
||||
Loss on natural gas-fired generating assets held for sale
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
(148
|
)
|
||||
Equity in earnings of equity method investees
|
16
|
|
|
28
|
|
|
17
|
|
|
57
|
|
||||
Allowance for equity funds used during construction
|
21
|
|
|
7
|
|
|
52
|
|
|
28
|
|
||||
Interest income
|
20
|
|
|
21
|
|
|
62
|
|
|
58
|
|
||||
Gains on disposal of assets - net
|
53
|
|
|
37
|
|
|
120
|
|
|
79
|
|
||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds
|
(4
|
)
|
|
(30
|
)
|
|
(11
|
)
|
|
(34
|
)
|
||||
Other - net
|
(27
|
)
|
|
4
|
|
|
(25
|
)
|
|
18
|
|
||||
Total other deductions - net
|
(180
|
)
|
|
(346
|
)
|
|
(580
|
)
|
|
(717
|
)
|
||||
INCOME BEFORE INCOME TAXES
|
569
|
|
|
565
|
|
|
2,035
|
|
|
1,529
|
|
||||
INCOME TAXES
|
154
|
|
|
158
|
|
|
553
|
|
|
273
|
|
||||
NET INCOME
|
$
|
415
|
|
|
$
|
407
|
|
|
$
|
1,482
|
|
|
$
|
1,256
|
|
Earnings per share of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.99
|
|
|
$
|
0.98
|
|
|
$
|
3.57
|
|
|
$
|
3.01
|
|
Assuming dilution
|
$
|
0.98
|
|
|
$
|
0.97
|
|
|
$
|
3.55
|
|
|
$
|
3.00
|
|
Dividends per share of common stock
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
$
|
1.80
|
|
|
$
|
1.65
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
419.3
|
|
|
417.4
|
|
|
415.6
|
|
|
416.7
|
|
||||
Assuming dilution
|
421.7
|
|
|
419.8
|
|
|
418.0
|
|
|
419.1
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
NET INCOME
|
$
|
415
|
|
|
$
|
407
|
|
|
$
|
1,482
|
|
|
$
|
1,256
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective portion of net unrealized losses (net of $15, $92, $41 and $125 tax benefit, respectively)
|
(30
|
)
|
|
(158
|
)
|
|
(79
|
)
|
|
(248
|
)
|
||||
Reclassification from accumulated other comprehensive income to net income (net of $7, $10, $18 and $18 tax expense, respectively)
|
3
|
|
|
16
|
|
|
24
|
|
|
36
|
|
||||
Net unrealized gains (losses) on available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on securities still held (net of $18 tax expense, $27 tax benefit, $44 tax expense and $12 tax benefit, respectively)
|
26
|
|
|
(43
|
)
|
|
64
|
|
|
(20
|
)
|
||||
Reclassification from accumulated other comprehensive income to net income (net of $18, $17, $43 and $32 tax benefit, respectively)
|
(27
|
)
|
|
(25
|
)
|
|
(64
|
)
|
|
(47
|
)
|
||||
Defined benefit pension and other benefits plans (net of $3 tax benefit and $4 tax expense, respectively)
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
6
|
|
||||
Net unrealized gains (losses) on foreign currency translation (net of $2 tax expense, $10 tax benefit, $3 tax expense and $4 tax benefit, respectively)
|
3
|
|
|
(19
|
)
|
|
6
|
|
|
(7
|
)
|
||||
Other comprehensive loss related to equity method investee (net of $3 and $7 tax benefit, respectively)
|
(4
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||
Total other comprehensive loss, net of tax
|
(29
|
)
|
|
(229
|
)
|
|
(65
|
)
|
|
(280
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME
|
$
|
386
|
|
|
$
|
178
|
|
|
$
|
1,417
|
|
|
$
|
976
|
|
|
September 30,
2012 |
|
December 31,
2011 |
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
||||
Electric utility plant in service and other property
|
$
|
54,262
|
|
|
$
|
50,768
|
|
Nuclear fuel
|
1,994
|
|
|
1,795
|
|
||
Construction work in progress
|
7,174
|
|
|
4,989
|
|
||
Less accumulated depreciation and amortization
|
(15,737
|
)
|
|
(15,062
|
)
|
||
Total property, plant and equipment - net ($3,900 and $3,063 related to VIEs, respectively)
|
47,693
|
|
|
42,490
|
|
||
CURRENT ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
246
|
|
|
377
|
|
||
Customer receivables, net of allowances of $14 and $11, respectively
|
1,633
|
|
|
1,372
|
|
||
Other receivables
|
489
|
|
|
430
|
|
||
Materials, supplies and fossil fuel inventory
|
1,055
|
|
|
1,074
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Deferred clause and franchise expenses
|
54
|
|
|
112
|
|
||
Derivatives
|
59
|
|
|
502
|
|
||
Other
|
87
|
|
|
84
|
|
||
Derivatives
|
482
|
|
|
611
|
|
||
Other
|
332
|
|
|
310
|
|
||
Total current assets
|
4,437
|
|
|
4,872
|
|
||
OTHER ASSETS
|
|
|
|
|
|
||
Special use funds
|
4,223
|
|
|
3,867
|
|
||
Other investments
|
971
|
|
|
907
|
|
||
Prepaid benefit costs
|
1,093
|
|
|
1,021
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Securitized storm-recovery costs ($284 and $317 related to a VIE, respectively)
|
462
|
|
|
517
|
|
||
Other
|
524
|
|
|
621
|
|
||
Derivatives
|
944
|
|
|
973
|
|
||
Other
|
1,702
|
|
|
1,920
|
|
||
Total other assets
|
9,919
|
|
|
9,826
|
|
||
TOTAL ASSETS
|
$
|
62,049
|
|
|
$
|
57,188
|
|
CAPITALIZATION
|
|
|
|
|
|
||
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 423 and 416, respectively)
|
$
|
4
|
|
|
$
|
4
|
|
Additional paid-in capital
|
5,494
|
|
|
5,217
|
|
||
Retained earnings
|
10,607
|
|
|
9,876
|
|
||
Accumulated other comprehensive loss
|
(219
|
)
|
|
(154
|
)
|
||
Total common shareholders' equity
|
15,886
|
|
|
14,943
|
|
||
Long-term debt ($1,301 and $1,364 related to VIEs, respectively)
|
22,714
|
|
|
20,810
|
|
||
Total capitalization
|
38,600
|
|
|
35,753
|
|
||
CURRENT LIABILITIES
|
|
|
|
|
|
||
Commercial paper
|
1,053
|
|
|
1,349
|
|
||
Short-term debt
|
521
|
|
|
—
|
|
||
Current maturities of long-term debt
|
2,062
|
|
|
808
|
|
||
Accounts payable
|
1,194
|
|
|
1,191
|
|
||
Customer deposits
|
513
|
|
|
547
|
|
||
Accrued interest and taxes
|
703
|
|
|
464
|
|
||
Derivatives
|
486
|
|
|
1,090
|
|
||
Accrued construction-related expenditures
|
512
|
|
|
518
|
|
||
Other
|
831
|
|
|
752
|
|
||
Total current liabilities
|
7,875
|
|
|
6,719
|
|
||
OTHER LIABILITIES AND DEFERRED CREDITS
|
|
|
|
|
|
||
Asset retirement obligations
|
1,685
|
|
|
1,611
|
|
||
Accumulated deferred income taxes
|
6,166
|
|
|
5,681
|
|
||
Regulatory liabilities:
|
|
|
|
|
|
||
Accrued asset removal costs
|
2,017
|
|
|
2,197
|
|
||
Asset retirement obligation regulatory expense difference
|
1,814
|
|
|
1,640
|
|
||
Other
|
361
|
|
|
419
|
|
||
Derivatives
|
530
|
|
|
541
|
|
||
Deferral related to differential membership interests - VIEs
|
1,498
|
|
|
1,203
|
|
||
Other
|
1,503
|
|
|
1,424
|
|
||
Total other liabilities and deferred credits
|
15,574
|
|
|
14,716
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
TOTAL CAPITALIZATION AND LIABILITIES
|
$
|
62,049
|
|
|
$
|
57,188
|
|
|
Nine Months Ended September 30,
|
||||||
|
2012
|
|
2011
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
1,482
|
|
|
$
|
1,256
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
1,121
|
|
|
1,236
|
|
||
Nuclear fuel amortization
|
194
|
|
|
210
|
|
||
Loss on natural gas-fired generating assets held for sale
|
—
|
|
|
148
|
|
||
Impairment charges
|
—
|
|
|
51
|
|
||
Unrealized losses (gains) on marked to market energy contracts
|
(89
|
)
|
|
182
|
|
||
Deferred income taxes
|
517
|
|
|
274
|
|
||
Cost recovery clauses and franchise fees
|
115
|
|
|
71
|
|
||
Changes in prepaid option premiums and derivative settlements
|
(36
|
)
|
|
23
|
|
||
Equity in earnings of equity method investees
|
(17
|
)
|
|
(57
|
)
|
||
Distributions of earnings from equity method investees
|
20
|
|
|
67
|
|
||
Allowance for equity funds used during construction
|
(52
|
)
|
|
(28
|
)
|
||
Gains on disposal of assets - net
|
(120
|
)
|
|
(79
|
)
|
||
Other than temporary impairment losses on securities held in nuclear decommissioning funds
|
11
|
|
|
34
|
|
||
Other - net
|
236
|
|
|
121
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Customer receivables
|
(255
|
)
|
|
(228
|
)
|
||
Other receivables
|
(92
|
)
|
|
56
|
|
||
Materials, supplies and fossil fuel inventory
|
21
|
|
|
(269
|
)
|
||
Other current assets
|
(51
|
)
|
|
(27
|
)
|
||
Other assets
|
(50
|
)
|
|
(83
|
)
|
||
Accounts payable
|
1
|
|
|
30
|
|
||
Customer deposits
|
(34
|
)
|
|
5
|
|
||
Margin cash collateral
|
110
|
|
|
(28
|
)
|
||
Income taxes
|
(6
|
)
|
|
106
|
|
||
Interest and other taxes
|
270
|
|
|
259
|
|
||
Other current liabilities
|
(27
|
)
|
|
(83
|
)
|
||
Other liabilities
|
(112
|
)
|
|
(130
|
)
|
||
Net cash provided by operating activities
|
3,157
|
|
|
3,117
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||
Capital expenditures of FPL
|
(3,061
|
)
|
|
(2,128
|
)
|
||
Independent power and other investments of NEER
|
(3,025
|
)
|
|
(1,654
|
)
|
||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
105
|
|
|
503
|
|
||
Nuclear fuel purchases
|
(202
|
)
|
|
(331
|
)
|
||
Other capital expenditures
|
(401
|
)
|
|
(204
|
)
|
||
Change in loan proceeds restricted for construction
|
212
|
|
|
(596
|
)
|
||
Proceeds from sale or maturity of securities in special use funds
|
3,890
|
|
|
3,567
|
|
||
Purchases of securities in special use funds
|
(3,994
|
)
|
|
(3,638
|
)
|
||
Proceeds from sale or maturity of other securities
|
219
|
|
|
399
|
|
||
Purchases of other securities
|
(259
|
)
|
|
(431
|
)
|
||
Other - net
|
15
|
|
|
91
|
|
||
Net cash used in investing activities
|
(6,501
|
)
|
|
(4,422
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||
Issuances of long-term debt
|
4,226
|
|
|
2,917
|
|
||
Retirements of long-term debt
|
(1,321
|
)
|
|
(1,688
|
)
|
||
Proceeds from sale of differential membership interests
|
414
|
|
|
210
|
|
||
Payments to differential membership investors
|
(53
|
)
|
|
—
|
|
||
Net change in short-term debt
|
396
|
|
|
946
|
|
||
Issuances of common stock - net
|
386
|
|
|
39
|
|
||
Repurchases of common stock
|
(19
|
)
|
|
—
|
|
||
Dividends on common stock
|
(752
|
)
|
|
(689
|
)
|
||
Other - net
|
(64
|
)
|
|
(92
|
)
|
||
Net cash provided by financing activities
|
3,213
|
|
|
1,643
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(131
|
)
|
|
338
|
|
||
Cash and cash equivalents at beginning of period
|
377
|
|
|
302
|
|
||
Cash and cash equivalents at end of period
|
$
|
246
|
|
|
$
|
640
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
||
Accrued property additions
|
$
|
943
|
|
|
$
|
851
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
OPERATING REVENUES
|
$
|
2,975
|
|
|
$
|
3,152
|
|
|
$
|
7,778
|
|
|
$
|
8,200
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel, purchased power and interchange
|
1,280
|
|
|
1,479
|
|
|
3,301
|
|
|
3,854
|
|
||||
Other operations and maintenance
|
427
|
|
|
429
|
|
|
1,305
|
|
|
1,237
|
|
||||
Depreciation and amortization
|
254
|
|
|
299
|
|
|
496
|
|
|
653
|
|
||||
Taxes other than income taxes and other
|
295
|
|
|
289
|
|
|
814
|
|
|
822
|
|
||||
Total operating expenses
|
2,256
|
|
|
2,496
|
|
|
5,916
|
|
|
6,566
|
|
||||
OPERATING INCOME
|
719
|
|
|
656
|
|
|
1,862
|
|
|
1,634
|
|
||||
OTHER INCOME (DEDUCTIONS)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(104
|
)
|
|
(101
|
)
|
|
(314
|
)
|
|
(287
|
)
|
||||
Allowance for equity funds used during construction
|
14
|
|
|
6
|
|
|
36
|
|
|
26
|
|
||||
Other - net
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
||||
Total other deductions - net
|
(90
|
)
|
|
(94
|
)
|
|
(278
|
)
|
|
(263
|
)
|
||||
INCOME BEFORE INCOME TAXES
|
629
|
|
|
562
|
|
|
1,584
|
|
|
1,371
|
|
||||
INCOME TAXES
|
237
|
|
|
215
|
|
|
600
|
|
|
519
|
|
||||
NET INCOME
(a)
|
$
|
392
|
|
|
$
|
347
|
|
|
$
|
984
|
|
|
$
|
852
|
|
(a)
|
FPL's comprehensive income is the same as reported net income.
|
|
September 30,
2012 |
|
December 31,
2011 |
||||
ELECTRIC UTILITY PLANT
|
|
|
|
||||
Plant in service and other property
|
$
|
33,981
|
|
|
$
|
31,564
|
|
Nuclear fuel
|
1,148
|
|
|
1,005
|
|
||
Construction work in progress
|
2,492
|
|
|
2,601
|
|
||
Less accumulated depreciation and amortization
|
(10,915
|
)
|
|
(10,916
|
)
|
||
Total electric utility plant - net
|
26,706
|
|
|
24,254
|
|
||
CURRENT ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
20
|
|
|
36
|
|
||
Customer receivables, net of allowances of $10 and $8, respectively
|
986
|
|
|
682
|
|
||
Other receivables
|
239
|
|
|
312
|
|
||
Materials, supplies and fossil fuel inventory
|
736
|
|
|
759
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Deferred clause and franchise expenses
|
54
|
|
|
112
|
|
||
Derivatives
|
59
|
|
|
502
|
|
||
Other
|
83
|
|
|
80
|
|
||
Other
|
132
|
|
|
166
|
|
||
Total current assets
|
2,309
|
|
|
2,649
|
|
||
OTHER ASSETS
|
|
|
|
|
|
||
Special use funds
|
2,967
|
|
|
2,737
|
|
||
Prepaid benefit costs
|
1,124
|
|
|
1,088
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Securitized storm-recovery costs ($284 and $317 related to a VIE, respectively)
|
462
|
|
|
517
|
|
||
Other
|
336
|
|
|
395
|
|
||
Other
|
216
|
|
|
176
|
|
||
Total other assets
|
5,105
|
|
|
4,913
|
|
||
TOTAL ASSETS
|
$
|
34,120
|
|
|
$
|
31,816
|
|
CAPITALIZATION
|
|
|
|
|
|
||
Common stock (no par value, 1,000 shares authorized, issued and outstanding)
|
$
|
1,373
|
|
|
$
|
1,373
|
|
Additional paid-in capital
|
5,703
|
|
|
5,464
|
|
||
Retained earnings
|
4,998
|
|
|
4,013
|
|
||
Total common shareholder's equity
|
12,074
|
|
|
10,850
|
|
||
Long-term debt ($386 and $437 related to a VIE, respectively)
|
7,632
|
|
|
7,483
|
|
||
Total capitalization
|
19,706
|
|
|
18,333
|
|
||
CURRENT LIABILITIES
|
|
|
|
|
|
||
Commercial paper
|
472
|
|
|
330
|
|
||
Current maturities of long-term debt
|
452
|
|
|
50
|
|
||
Accounts payable
|
672
|
|
|
678
|
|
||
Customer deposits
|
508
|
|
|
541
|
|
||
Accrued interest and taxes
|
486
|
|
|
221
|
|
||
Derivatives
|
67
|
|
|
512
|
|
||
Accrued construction-related expenditures
|
210
|
|
|
261
|
|
||
Other
|
384
|
|
|
373
|
|
||
Total current liabilities
|
3,251
|
|
|
2,966
|
|
||
OTHER LIABILITIES AND DEFERRED CREDITS
|
|
|
|
|
|
||
Asset retirement obligations
|
1,190
|
|
|
1,144
|
|
||
Accumulated deferred income taxes
|
5,248
|
|
|
4,593
|
|
||
Regulatory liabilities:
|
|
|
|
|
|
||
Accrued asset removal costs
|
2,017
|
|
|
2,197
|
|
||
Asset retirement obligation regulatory expense difference
|
1,814
|
|
|
1,640
|
|
||
Other
|
361
|
|
|
416
|
|
||
Other
|
533
|
|
|
527
|
|
||
Total other liabilities and deferred credits
|
11,163
|
|
|
10,517
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
TOTAL CAPITALIZATION AND LIABILITIES
|
$
|
34,120
|
|
|
$
|
31,816
|
|
|
Nine Months Ended September 30,
|
||||||
|
2012
|
|
2011
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
984
|
|
|
$
|
852
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
496
|
|
|
653
|
|
||
Nuclear fuel amortization
|
74
|
|
|
111
|
|
||
Deferred income taxes
|
656
|
|
|
439
|
|
||
Cost recovery clauses and franchise fees
|
115
|
|
|
71
|
|
||
Allowance for equity funds used during construction
|
(36
|
)
|
|
(26
|
)
|
||
Other - net
|
51
|
|
|
21
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Customer receivables
|
(305
|
)
|
|
(286
|
)
|
||
Other receivables
|
16
|
|
|
14
|
|
||
Materials, supplies and fossil fuel inventory
|
24
|
|
|
(219
|
)
|
||
Other current assets
|
(35
|
)
|
|
(33
|
)
|
||
Other assets
|
(41
|
)
|
|
(48
|
)
|
||
Accounts payable
|
60
|
|
|
69
|
|
||
Customer deposits
|
(32
|
)
|
|
4
|
|
||
Income taxes
|
74
|
|
|
(67
|
)
|
||
Interest and other taxes
|
264
|
|
|
228
|
|
||
Other current liabilities
|
(55
|
)
|
|
1
|
|
||
Other liabilities
|
(8
|
)
|
|
(36
|
)
|
||
Net cash provided by operating activities
|
2,302
|
|
|
1,748
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||
Capital expenditures
|
(3,061
|
)
|
|
(2,128
|
)
|
||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
—
|
|
|
202
|
|
||
Nuclear fuel purchases
|
(137
|
)
|
|
(223
|
)
|
||
Proceeds from sale or maturity of securities in special use funds
|
2,949
|
|
|
2,483
|
|
||
Purchases of securities in special use funds
|
(3,031
|
)
|
|
(2,534
|
)
|
||
Other - net
|
27
|
|
|
32
|
|
||
Net cash used in investing activities
|
(3,253
|
)
|
|
(2,168
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||
Issuances of long-term debt
|
594
|
|
|
248
|
|
||
Retirements of long-term debt
|
(50
|
)
|
|
(45
|
)
|
||
Net change in short-term debt
|
142
|
|
|
307
|
|
||
Capital contribution from NEE
|
240
|
|
|
310
|
|
||
Dividends to NEE
|
—
|
|
|
(400
|
)
|
||
Other - net
|
9
|
|
|
10
|
|
||
Net cash provided by financing activities
|
935
|
|
|
430
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(16
|
)
|
|
10
|
|
||
Cash and cash equivalents at beginning of period
|
36
|
|
|
20
|
|
||
Cash and cash equivalents at end of period
|
$
|
20
|
|
|
$
|
30
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
||
Accrued property additions
|
$
|
445
|
|
|
$
|
420
|
|
|
|
Pension Benefits
|
|
Other Benefits
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||||||||||
|
|
(millions)
|
||||||||||||||||||||||||||||||
Service cost
|
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
49
|
|
|
$
|
48
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Interest cost
|
|
25
|
|
|
25
|
|
|
4
|
|
|
5
|
|
|
74
|
|
|
74
|
|
|
13
|
|
|
16
|
|
||||||||
Expected return on plan assets
|
|
(60
|
)
|
|
(60
|
)
|
|
—
|
|
|
(1
|
)
|
|
(179
|
)
|
|
(179
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||||||
Amortization of transition obligation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||||
Amortization of prior service cost (benefit)
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net periodic benefit (income) cost at NEE
|
|
$
|
(18
|
)
|
|
$
|
(20
|
)
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
(53
|
)
|
|
$
|
(59
|
)
|
|
$
|
17
|
|
|
$
|
21
|
|
Net periodic benefit (income) cost at FPL
|
|
$
|
(11
|
)
|
|
$
|
(13
|
)
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
(34
|
)
|
|
$
|
(39
|
)
|
|
$
|
13
|
|
|
$
|
16
|
|
|
|
NEE
|
|
FPL
|
|
||||||||||||
|
|
September 30, 2012
|
|
December 31, 2011
|
|
September 30, 2012
|
|
December 31, 2011
|
|
||||||||
|
|
(millions)
|
|
||||||||||||||
Current derivative assets
(a)
|
|
$
|
482
|
|
|
$
|
611
|
|
|
$
|
8
|
|
(b)
|
$
|
10
|
|
(b)
|
Noncurrent derivative assets
(c)
|
|
944
|
|
|
973
|
|
|
32
|
|
(d)
|
2
|
|
(d)
|
||||
Current derivative liabilities
(e)
|
|
(486
|
)
|
|
(1,090
|
)
|
|
(67
|
)
|
|
(512
|
)
|
|
||||
Noncurrent derivative liabilities
(f)
|
|
(530
|
)
|
|
(541
|
)
|
|
—
|
|
|
(1
|
)
|
(g)
|
||||
Total mark-to-market derivative instrument assets (liabilities)
|
|
$
|
410
|
|
|
$
|
(47
|
)
|
|
$
|
(27
|
)
|
|
$
|
(501
|
)
|
|
(a)
|
At
September 30, 2012
and
December 31, 2011
, NEE's balances reflect the netting of approximately
$40 million
and
$106 million
(
none
at FPL), respectively, in margin cash collateral received from counterparties.
|
(b)
|
Included in current other assets on FPL's condensed consolidated balance sheets.
|
(c)
|
At
September 30, 2012
and
December 31, 2011
, NEE's balances reflect the netting of approximately
$154 million
and
$109 million
(
none
at FPL), respectively, in margin cash collateral received from counterparties.
|
(d)
|
Included in noncurrent other assets on FPL's condensed consolidated balance sheets.
|
(e)
|
At
September 30, 2012
and
December 31, 2011
, NEE's balances reflect the netting of approximately
$74 million
and
$112 million
(
none
at FPL), respectively, in margin cash collateral provided to counterparties.
|
(f)
|
At
December 31, 2011
, NEE's balance reflects the netting of approximately
$79 million
(
none
at FPL) in margin cash collateral provided to counterparties.
|
(g)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
|
|
September 30, 2012
|
|
December 31, 2011
|
||||||||||||
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
||||||||
|
|
(millions)
|
||||||||||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Current derivative assets
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
Current derivative liabilities
|
|
—
|
|
|
97
|
|
|
—
|
|
|
60
|
|
||||
Noncurrent derivative assets
|
|
54
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
Noncurrent derivative liabilities
|
|
—
|
|
|
294
|
|
|
—
|
|
|
260
|
|
||||
Foreign currency swap:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current derivative liabilities
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Noncurrent derivative liabilities
|
|
—
|
|
|
5
|
|
|
—
|
|
|
3
|
|
||||
Total
|
|
$
|
80
|
|
|
$
|
399
|
|
|
$
|
37
|
|
|
$
|
326
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swap
|
|
Total
|
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swaps
|
|
Total
|
||||||||||||||||
|
(millions)
|
||||||||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
—
|
|
|
$
|
(39
|
)
|
|
$
|
(6
|
)
|
|
$
|
(45
|
)
|
|
$
|
—
|
|
|
$
|
(236
|
)
|
|
$
|
(14
|
)
|
|
$
|
(250
|
)
|
Gains (losses) reclassified from AOCI to net income
(a)
|
$
|
2
|
|
|
$
|
(14
|
)
|
|
$
|
2
|
|
(b)
|
$
|
(10
|
)
|
|
$
|
11
|
|
|
$
|
(21
|
)
|
|
$
|
5
|
|
(b)
|
$
|
(5
|
)
|
(a)
|
Included in operating revenues for commodity contracts and interest expense for interest rate swaps. In 2011, excludes approximately
$21 million
of net losses related to discontinuance of certain cash flow hedges. See further discussion above.
|
(b)
|
Loss of approximately
$1 million
is included in interest expense and the balance is included in other - net.
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swap
|
|
Total
|
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swaps
|
|
Total
|
||||||||||||||||
|
(millions)
|
||||||||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
—
|
|
|
$
|
(104
|
)
|
|
$
|
(16
|
)
|
|
$
|
(120
|
)
|
|
$
|
—
|
|
|
$
|
(353
|
)
|
|
$
|
(20
|
)
|
|
$
|
(373
|
)
|
Gains (losses) reclassified from AOCI to net income
(a)
|
$
|
6
|
|
|
$
|
(44
|
)
|
|
$
|
(4
|
)
|
(b)
|
$
|
(42
|
)
|
|
$
|
30
|
|
|
$
|
(64
|
)
|
|
$
|
1
|
|
(c)
|
$
|
(33
|
)
|
(a)
|
Included in operating revenues for commodity contracts and interest expense for interest rate swaps. In 2011, excludes approximately
$21 million
of net losses related to discontinuance of certain cash flow hedges. See further discussion above.
|
(b)
|
Loss of approximately
$2 million
is included in interest expense and the balance is included in other - net.
|
(c)
|
Loss of approximately
$4 million
is included in interest expense and the balance is included in other - net.
|
|
September 30, 2012
|
|
December 31, 2011
|
|
||||||||||||||||||||||||||||
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
|
||||||||||||||||||||||||
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
||||||||||||||||
|
(millions)
|
|
||||||||||||||||||||||||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current derivative assets
|
$
|
922
|
|
|
$
|
426
|
|
|
$
|
12
|
|
(a)
|
$
|
4
|
|
(a)
|
$
|
1,127
|
|
|
$
|
432
|
|
|
$
|
11
|
|
(a)
|
$
|
1
|
|
(a)
|
Current derivative liabilities
|
1,775
|
|
|
2,233
|
|
|
43
|
|
|
110
|
|
|
3,358
|
|
|
4,494
|
|
|
1
|
|
|
513
|
|
|
||||||||
Noncurrent derivative assets
|
1,913
|
|
|
884
|
|
|
32
|
|
(b)
|
—
|
|
|
1,290
|
|
|
250
|
|
|
2
|
|
(b)
|
—
|
|
|
||||||||
Noncurrent derivative liabilities
|
233
|
|
|
464
|
|
|
—
|
|
|
—
|
|
|
1,222
|
|
|
1,579
|
|
|
—
|
|
|
1
|
|
(c)
|
||||||||
Foreign currency swap:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current derivative liabilities
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
||||||||
Noncurrent derivative assets
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Total
|
$
|
4,858
|
|
|
$
|
4,009
|
|
|
$
|
87
|
|
|
$
|
114
|
|
|
$
|
7,024
|
|
|
$
|
6,758
|
|
|
$
|
14
|
|
|
$
|
515
|
|
|
(a)
|
Included in current other assets on FPL's condensed consolidated balance sheets.
|
(b)
|
Included in noncurrent other assets on FPL's condensed consolidated balance sheets.
|
(c)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions)
|
||||||||||||||
Commodity contracts
(a)
:
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
(218
|
)
|
|
$
|
(50
|
)
|
|
$
|
102
|
|
|
$
|
(48
|
)
|
Fuel, purchased power and interchange
|
(4
|
)
|
|
10
|
|
|
36
|
|
|
8
|
|
||||
Foreign currency swap - other - net
|
9
|
|
|
23
|
|
|
(13
|
)
|
|
20
|
|
||||
Interest rate contracts - other - net
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(11
|
)
|
||||
Total
|
$
|
(213
|
)
|
|
$
|
(33
|
)
|
|
$
|
125
|
|
|
$
|
(31
|
)
|
(a)
|
For the
three months ended September 30, 2012 and 2011
, FPL recorded approximately
$90 million
of
gains
and
$232 million
of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets. For the
nine months ended September 30, 2012 and 2011
, FPL recorded approximately
$86 million
and
$300 million
of losses, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets.
|
Commodity Type
|
|
NEE
|
|
FPL
|
||||||
|
|
(millions)
|
||||||||
Power
|
|
(46
|
)
|
|
mwh
(a)
|
|
—
|
|
|
|
Natural gas
|
|
1,221
|
|
|
mmbtu
(b)
|
|
837
|
|
|
mmbtu
(b)
|
Oil
|
|
(7
|
)
|
|
barrels
|
|
—
|
|
|
|
(a)
|
Megawatt-hours
|
(b)
|
One million British thermal units
|
|
September 30, 2012
|
|
||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE - equity securities
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
FPL - equity securities
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
Special use funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
813
|
|
|
$
|
1,293
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,106
|
|
|
U.S. Government and municipal bonds
|
$
|
495
|
|
|
$
|
169
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
664
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
549
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
549
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
594
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
594
|
|
|
Other debt securities
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
FPL:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
150
|
|
|
$
|
1,142
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,292
|
|
|
U.S. Government and municipal bonds
|
$
|
442
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
574
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
381
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
381
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
513
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
513
|
|
|
Other debt securities
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
U.S. Government and municipal bonds
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
Other
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,407
|
|
|
$
|
2,605
|
|
|
$
|
831
|
|
|
$
|
(3,512
|
)
|
|
$
|
1,331
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
82
|
|
|
$
|
5
|
|
|
$
|
(47
|
)
|
|
$
|
40
|
|
(c)
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,461
|
|
|
$
|
2,197
|
|
|
$
|
349
|
|
|
$
|
(3,392
|
)
|
|
$
|
615
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
391
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
391
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
(47
|
)
|
|
$
|
67
|
|
(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 NEE, approximately
$1,217 million
(
$1,093 million
at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.
|
(c)
|
See Note 2 for a reconciliation of net derivatives to NEE's and FPL's condensed consolidated balance sheets.
|
|
December 31, 2011
|
|
||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE - equity securities
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
159
|
|
|
FPL - equity securities
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
Special use funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
709
|
|
|
$
|
1,206
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,915
|
|
|
U.S. Government and municipal bonds
|
$
|
508
|
|
|
$
|
167
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
675
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
516
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
516
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
511
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
511
|
|
|
Other debt securities
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
FPL:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
128
|
|
|
$
|
1,056
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,184
|
|
|
U.S. Government and municipal bonds
|
$
|
458
|
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
592
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
359
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
434
|
|
|
Other debt securities
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
U.S. Government and municipal bonds
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
Other
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
2,448
|
|
|
$
|
3,478
|
|
|
$
|
1,071
|
|
|
$
|
(5,477
|
)
|
|
$
|
1,520
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
12
|
|
(c)
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
2,588
|
|
|
$
|
3,582
|
|
|
$
|
585
|
|
|
$
|
(5,453
|
)
|
|
$
|
1,302
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
513
|
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
513
|
|
(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 NEE, approximately
$1,086 million
(
$979 million
at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.
|
(c)
|
See Note 2 for a reconciliation of net derivatives to NEE's and FPL's condensed consolidated balance sheets.
|
Transaction Type
|
|
Fair Value at
September 30, 2012
|
|
Valuation
Technique(s)
|
|
Significant
Unobservable Inputs
|
|
Range
|
||||
|
|
Assets
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
|
|
||
Forward contracts - power
|
|
$366
|
|
$95
|
|
Discounted cash flow
|
|
Forward price (per mwh)
|
|
$10
|
–
|
$141
|
Options - power
|
|
$179
|
|
$200
|
|
Option models
|
|
Implied correlations
|
|
12%
|
—
|
98%
|
|
|
|
|
|
|
|
|
Implied volatilities
|
|
1%
|
—
|
154%
|
Options - gas
|
|
$43
|
|
$10
|
|
Option models
|
|
Implied correlations
|
|
12%
|
—
|
98%
|
|
|
|
|
|
|
|
|
Implied volatilities
|
|
1%
|
—
|
56%
|
Full requirements and unit contingent contracts
|
|
$211
|
|
$33
|
|
Discounted cash flow
|
|
Forward price (per mwh)
|
|
$5
|
—
|
$127
|
|
|
|
|
|
|
|
|
Customer migration rate
(a)
|
|
—%
|
—
|
20%
|
(a)
|
Applies only to full requirements contracts.
|
Significant Unobservable Input
|
|
Position
|
|
Impact on
Fair Value Measurement
|
Forward price
|
|
Purchase power
|
|
Increase (decrease)
|
|
|
Sell power
|
|
Decrease (increase)
|
Implied correlations
|
|
Purchase option
|
|
Decrease (increase)
|
|
|
Sell option
|
|
Increase (decrease)
|
Implied volatilities
|
|
Purchase option
|
|
Increase (decrease)
|
|
|
Sell option
|
|
Decrease (increase)
|
Customer migration rate
|
|
Sell power
(a)
|
|
Decrease (increase)
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2012
|
|
2011
|
||||||||||||
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||
|
(millions)
|
||||||||||||||
Fair value of net derivatives based on significant unobservable inputs at June 30
|
$
|
575
|
|
|
$
|
7
|
|
|
$
|
155
|
|
|
$
|
5
|
|
Realized and unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
(a)
|
(149
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||
Included in regulatory assets and liabilities
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Purchases
|
40
|
|
|
—
|
|
|
45
|
|
|
—
|
|
||||
Settlements
|
30
|
|
|
(3
|
)
|
|
3
|
|
|
(1
|
)
|
||||
Issuances
|
(21
|
)
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
||||
Transfers in
(b)
|
5
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Transfers out
(b)
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Fair value of net derivatives based on significant unobservable inputs at September 30
|
$
|
482
|
|
|
$
|
5
|
|
|
$
|
121
|
|
|
$
|
4
|
|
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)
|
$
|
(171
|
)
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
(a)
|
For the
three months ended September 30, 2012 and 2011
,
$(149) million
and
$(12) million
, respectively, of realized and unrealized gains (losses) are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
(b)
|
For the
three months ended September 30, 2012 and 2011
, transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.
|
(c)
|
For the
three months ended September 30, 2012 and 2011
,
$(170) million
and
$12 million
, respectively, of unrealized gains (losses) are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2012
|
|
2011
|
||||||||||||
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||
|
(millions)
|
||||||||||||||
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year
|
$
|
486
|
|
|
$
|
4
|
|
|
$
|
296
|
|
|
$
|
7
|
|
Realized and unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Included in earnings
(a)
|
135
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Included in regulatory assets and liabilities
|
7
|
|
|
7
|
|
|
2
|
|
|
2
|
|
||||
Purchases
|
221
|
|
|
—
|
|
|
186
|
|
|
—
|
|
||||
Settlements
|
(152
|
)
|
|
(6
|
)
|
|
(100
|
)
|
|
(5
|
)
|
||||
Issuances
|
(221
|
)
|
|
—
|
|
|
(260
|
)
|
|
—
|
|
||||
Transfers in
(b)
|
21
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Transfers out
(b)
|
(15
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
||||
Fair value of net derivatives based on significant unobservable inputs at September 30
|
$
|
482
|
|
|
$
|
5
|
|
|
$
|
121
|
|
|
$
|
4
|
|
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)
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
—
|
|
(a)
|
For the
nine months ended September 30, 2012 and 2011
,
$132 million
and
$(11) million
, respectively, of realized and unrealized gains (losses) are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
(b)
|
For the
nine months ended September 30, 2012 and 2011
, transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.
|
(c)
|
For the
nine months ended September 30, 2012 and 2011
,
$41 million
and
$37 million
, respectively, of unrealized gains (losses) are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
|
September 30, 2012
|
|
December 31, 2011
|
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
||||||||
|
(millions)
|
|
||||||||||||||
NEE:
|
|
|
||||||||||||||
Special use funds
|
$
|
4,223
|
|
(a)
|
$
|
4,223
|
|
(a)
|
$
|
3,867
|
|
(a)
|
$
|
3,867
|
|
(a)
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
Notes receivable
|
$
|
500
|
|
|
$
|
681
|
|
(b)
|
$
|
503
|
|
|
$
|
535
|
|
(b)
|
Debt securities
|
$
|
115
|
|
(c)
|
$
|
115
|
|
(d)
|
$
|
89
|
|
(c)
|
$
|
89
|
|
(d)
|
Equity securities
|
$
|
61
|
|
|
$
|
75
|
|
(e)
|
$
|
80
|
|
|
$
|
159
|
|
(e)
|
Long-term debt, including current maturities
|
$
|
24,769
|
|
|
$
|
27,674
|
|
(f)
|
$
|
21,614
|
|
|
$
|
23,699
|
|
(f)
|
Interest rate swaps - net unrealized losses
|
$
|
(311
|
)
|
|
$
|
(311
|
)
|
(d)
|
$
|
(283
|
)
|
|
$
|
(283
|
)
|
(d)
|
Foreign currency swaps - net unrealized gains
|
$
|
5
|
|
|
$
|
5
|
|
(d)
|
$
|
18
|
|
|
$
|
18
|
|
(d)
|
FPL:
|
|
|
|
|
|
|
|
|
||||||||
Special use funds
|
$
|
2,967
|
|
(a)
|
$
|
2,967
|
|
(a)
|
$
|
2,737
|
|
(a)
|
$
|
2,737
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
8,084
|
|
|
$
|
9,984
|
|
(f)
|
$
|
7,533
|
|
|
$
|
9,078
|
|
(f)
|
(a)
|
At
September 30, 2012
, includes
$229 million
of investments accounted for under the equity method and
$34 million
of loans not measured at fair value on a recurring basis (
$144 million
and
$28 million
, respectively, for FPL). At
December 31, 2011
, includes
$164 million
of investments accounted for under the equity method and
$39 million
of loans not measured at fair value on a recurring basis (
$112 million
and
$24 million
, respectively, for FPL). For the remaining balances, see Note 3 for classification by major security type and hierarchy level. The amortized cost of debt and equity securities is
$1,753 million
and
$1,437 million
, respectively, at
September 30, 2012
and
$1,638 million
and
$1,425 million
, respectively, at
December 31, 2011
(
$1,417 million
and
$791 million
, respectively, at
September 30, 2012
and
$1,321 million
and
$864 million
, respectively, at
December 31, 2011
for FPL).
|
(b)
|
Classified as held to maturity. Estimated using a discounted cash flow valuation technique based on certain observable yield curves and indices considering the credit profile of the borrower (Level 3). Notes receivable bear interest primarily at fixed rates and mature by
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
September 30, 2012
, NEE had no notes receivable reported in non-accrual status.
|
(c)
|
Classified as trading securities.
|
(d)
|
See Note 3.
|
(e)
|
Primarily modeled internally based on recent market information including, among other things, private offerings of the securities (Level 3).
|
(f)
|
As of
September 30, 2012
and
December 31, 2011
,
$15,873 million
and
$15,035 million
, respectively, is estimated using quoted market prices for the same or similar issues (Level 2); the balance is estimated using a discounted cash flow valuation technique, considering the current credit spread of the debtor (Level 3). For FPL, estimated using quoted market prices for the same or similar issues (Level 2).
|
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||||||||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||||||||||
|
(millions)
|
||||||||||||||||||||||||||||||
Realized gains
|
$
|
75
|
|
|
$
|
69
|
|
|
$
|
20
|
|
|
$
|
22
|
|
|
$
|
206
|
|
|
$
|
156
|
|
|
$
|
81
|
|
|
$
|
60
|
|
Realized losses
|
$
|
16
|
|
|
$
|
27
|
|
|
$
|
12
|
|
|
$
|
17
|
|
|
$
|
48
|
|
|
$
|
70
|
|
|
$
|
34
|
|
|
$
|
51
|
|
Proceeds from sale or maturity of securities
|
$
|
953
|
|
|
$
|
992
|
|
|
$
|
592
|
|
|
$
|
675
|
|
|
$
|
3,890
|
|
|
$
|
3,567
|
|
|
$
|
2,949
|
|
|
$
|
2,483
|
|
|
NEE
|
|
FPL
|
||||||||||||
|
September 30, 2012
|
|
December 31, 2011
|
|
September 30, 2012
|
|
December 31, 2011
|
||||||||
|
(millions)
|
||||||||||||||
Equity securities
|
$
|
694
|
|
|
$
|
546
|
|
|
$
|
526
|
|
|
$
|
376
|
|
U.S. Government and municipal bonds
|
$
|
32
|
|
|
$
|
46
|
|
|
$
|
29
|
|
|
$
|
43
|
|
Corporate debt securities
|
$
|
43
|
|
|
$
|
31
|
|
|
$
|
32
|
|
|
$
|
24
|
|
Mortgage-backed securities
|
$
|
25
|
|
|
$
|
27
|
|
|
$
|
22
|
|
|
$
|
24
|
|
Other debt securities
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions, except per share amounts)
|
||||||||||||||
Numerator - net income
|
$
|
415
|
|
|
$
|
407
|
|
|
$
|
1,482
|
|
|
$
|
1,256
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of common shares outstanding - basic
|
419.3
|
|
|
417.4
|
|
|
415.6
|
|
|
416.7
|
|
||||
Performance share awards, options, restricted stock and equity units
(a)
|
2.4
|
|
|
2.4
|
|
|
2.4
|
|
|
2.4
|
|
||||
Weighted-average number of common shares outstanding - assuming dilution
|
421.7
|
|
|
419.8
|
|
|
418.0
|
|
|
419.1
|
|
||||
Earnings per share of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.99
|
|
|
$
|
0.98
|
|
|
$
|
3.57
|
|
|
$
|
3.01
|
|
Assuming dilution
|
$
|
0.98
|
|
|
$
|
0.97
|
|
|
$
|
3.55
|
|
|
$
|
3.00
|
|
(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. Performance share awards, options, restricted stock and equity units are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method.
|
Date Issued
|
|
Company
|
|
Debt Issuances/Borrowings
|
|
Interest
Rate
|
|
Principal
Amount
|
|
Maturity
Date
|
|||
|
|
|
|
|
|
|
|
(millions)
|
|
|
|||
January - September 2012
|
|
NEECH and NEER subsidiary
|
|
Canadian revolving credit facilities
|
|
Variable
|
|
(a)
|
$
|
146
|
|
|
2013
|
January - September 2012
|
|
NEER subsidiaries
|
|
Euro denominated senior secured limited-recourse loan
|
|
Variable
|
|
(a)(b)
|
$
|
247
|
|
|
2030
|
January - September 2012
|
|
NEER subsidiaries
|
|
Euro denominated senior secured limited-recourse loan
|
|
Variable
|
|
(a)
|
$
|
48
|
|
|
2015
|
January - September 2012
|
|
NEECH and NEER subsidiary
|
|
Euro denominated revolving loan
|
|
Variable
|
|
(a)
|
$
|
81
|
|
|
2014
|
January - August 2012
|
|
Lone Star Transmission, LLC
|
|
Senior secured limited-recourse loan
|
|
Variable
|
|
(a)
|
$
|
150
|
|
|
2016
|
March 2012
|
|
NEECH
|
|
Junior subordinated debentures
|
|
5.70
|
%
|
|
$
|
400
|
|
|
2072
|
May 2012
|
|
NEECH
|
|
Debentures related to NEE's equity units
|
|
1.70
|
%
|
|
$
|
600
|
|
|
2017
|
May 2012
|
|
FPL
|
|
First mortgage bonds
|
|
4.05
|
%
|
|
$
|
600
|
|
|
2042
|
June 2012
|
|
NEECH
|
|
Junior subordinated debentures
|
|
5.625
|
%
|
|
$
|
350
|
|
|
2072
|
July 2012
|
|
NEER subsidiary
|
|
Limited-recourse term loan
|
|
Variable
|
|
(a)(b)
|
$
|
99
|
|
|
2015
|
September 2012
|
|
NEECH
|
|
Debentures related to NEE's equity units
|
|
1.60
|
%
|
|
$
|
650
|
|
|
2017
|
September 2012
|
|
NEECH
|
|
Debentures
|
|
1.20
|
%
|
|
$
|
500
|
|
|
2015
|
September 2012
|
|
NEER subsidiary
|
|
Canadian senior secured limited-recourse notes
|
|
4.881
|
%
|
|
$
|
176
|
|
|
2031
|
September 2012
|
|
NEER subsidiary
|
|
Senior secured limited-recourse loan
|
|
Variable
|
|
(a)(b)
|
$
|
232
|
|
|
2030
|
(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.
|
|
Remainder of 2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
Total
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
FPL:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Generation:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New
(b)(c)
|
$
|
500
|
|
|
$
|
770
|
|
|
$
|
770
|
|
|
$
|
295
|
|
|
$
|
120
|
|
|
$
|
2,455
|
|
Existing
|
190
|
|
|
645
|
|
|
655
|
|
|
550
|
|
|
440
|
|
|
2,480
|
|
||||||
Transmission and distribution
|
215
|
|
|
690
|
|
|
690
|
|
|
660
|
|
|
705
|
|
|
2,960
|
|
||||||
Nuclear fuel
|
70
|
|
|
125
|
|
|
205
|
|
|
245
|
|
|
245
|
|
|
890
|
|
||||||
General and other
|
45
|
|
|
190
|
|
|
120
|
|
|
80
|
|
|
85
|
|
|
520
|
|
||||||
Total
|
$
|
1,020
|
|
|
$
|
2,420
|
|
|
$
|
2,440
|
|
|
$
|
1,830
|
|
|
$
|
1,595
|
|
|
$
|
9,305
|
|
NEER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wind
(d)
|
$
|
740
|
|
|
$
|
285
|
|
|
$
|
25
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
1,060
|
|
Solar
(e)
|
390
|
|
|
670
|
|
|
160
|
|
|
5
|
|
|
—
|
|
|
1,225
|
|
||||||
Nuclear
(f)
|
95
|
|
|
315
|
|
|
280
|
|
|
285
|
|
|
325
|
|
|
1,300
|
|
||||||
Other
(g)
|
85
|
|
|
200
|
|
|
120
|
|
|
135
|
|
|
60
|
|
|
600
|
|
||||||
Total
|
$
|
1,310
|
|
|
$
|
1,470
|
|
|
$
|
585
|
|
|
$
|
430
|
|
|
$
|
390
|
|
|
$
|
4,185
|
|
Corporate and Other
(h)
|
$
|
115
|
|
|
$
|
115
|
|
|
$
|
45
|
|
|
$
|
45
|
|
|
$
|
45
|
|
|
$
|
365
|
|
(a)
|
Includes allowance for funds used during construction (AFUDC) of approximately $
24 million
, $
82 million
, $
53 million
, $
48 million
and
$27 million
in 2012 to 2016, respectively.
|
(b)
|
Includes land, generating structures, transmission interconnection and integration and licensing.
|
(c)
|
Consists of 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
$24 million
, $
42 million
and
$12 million
in 2012 to 2014, 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 and related transmission totaling approximately
1,500
mw, including approximately
150
mw in Canada, that have received applicable internal approvals. Excludes new Canadian wind projects requiring internal approvals with generation totaling approximately
470
mw in 2014 and 2015, with an estimated cost of approximately
$1.3 billion
to
$1.5 billion
.
|
(e)
|
Consists of capital expenditures for planned new solar projects and related transmission totaling
625
mw that have received applicable internal approvals, including equity contributions associated with a 50% equity method investment in a
550
mw solar project. Excludes solar projects requiring internal approvals with generation totaling
270
mw with an estimated cost of approximately
$600 million
to
$800 million
.
|
(f)
|
Includes nuclear fuel.
|
(g)
|
Consists of capital expenditures that have received applicable internal approvals.
|
(h)
|
Consists of capital expenditures that have received applicable internal approvals and includes AFUDC of approximately
$9 million
and
$14 million
in 2012 and 2013, respectively.
|
|
Remainder of 2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
Thereafter
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
FPL:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capacity charges:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Qualifying facilities
|
$
|
75
|
|
|
$
|
270
|
|
|
$
|
275
|
|
|
$
|
280
|
|
|
$
|
245
|
|
|
$
|
2,415
|
|
JEA and Southern subsidiaries
|
$
|
60
|
|
|
$
|
230
|
|
|
$
|
220
|
|
|
$
|
195
|
|
|
$
|
70
|
|
|
$
|
155
|
|
Minimum charges, at projected prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Natural gas, including transportation and storage
(b)
|
$
|
495
|
|
|
$
|
1,580
|
|
|
$
|
1,065
|
|
|
$
|
570
|
|
|
$
|
535
|
|
|
$
|
6,935
|
|
Coal
(b)
|
$
|
25
|
|
|
$
|
90
|
|
|
$
|
35
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
NEER
|
$
|
610
|
|
|
$
|
690
|
|
|
$
|
235
|
|
|
$
|
85
|
|
|
$
|
105
|
|
|
$
|
600
|
|
Corporate and Other
(c)
|
$
|
65
|
|
|
$
|
30
|
|
|
$
|
10
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
20
|
|
(a)
|
Capacity charges under these contracts, substantially all of which are recoverable through the capacity clause, totaled approximately $
129 million
and $
128 million
for the three months ended September 30, 2012 and 2011, respectively, and approximately
$391 million
and
$383 million
for the nine months ended September 30, 2012 and 2011, respectively. Energy charges under these contracts, which are recoverable through the fuel clause, totaled approximately $
110 million
and $
135 million
for the three months ended September 30, 2012 and 2011, respectively, and approximately
$232 million
and
$348 million
for the nine months ended September 30, 2012 and 2011, respectively.
|
(b)
|
Recoverable through the fuel clause.
|
(c)
|
Includes an approximately
$68 million
commitment to invest in clean power and technology businesses through 2017.
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
2,975
|
|
|
$
|
808
|
|
|
$
|
60
|
|
|
$
|
3,843
|
|
|
$
|
3,152
|
|
|
$
|
1,172
|
|
|
$
|
58
|
|
|
$
|
4,382
|
|
Operating expenses
|
$
|
2,256
|
|
|
$
|
785
|
|
|
$
|
53
|
|
|
$
|
3,094
|
|
|
$
|
2,496
|
|
|
$
|
920
|
|
|
$
|
55
|
|
|
$
|
3,471
|
|
Net income
|
$
|
392
|
|
|
$
|
44
|
|
(b)
|
$
|
(21
|
)
|
|
$
|
415
|
|
|
$
|
347
|
|
|
$
|
67
|
|
(b)
|
$
|
(7
|
)
|
(c)
|
$
|
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
7,778
|
|
|
$
|
2,929
|
|
|
$
|
174
|
|
|
$
|
10,881
|
|
|
$
|
8,200
|
|
|
$
|
3,110
|
|
|
$
|
166
|
|
|
$
|
11,476
|
|
Operating expenses
|
$
|
5,916
|
|
|
$
|
2,201
|
|
|
$
|
149
|
|
|
$
|
8,266
|
|
|
$
|
6,566
|
|
|
$
|
2,520
|
|
(d)
|
$
|
144
|
|
|
$
|
9,230
|
|
Net income
|
$
|
984
|
|
|
$
|
516
|
|
(b)
|
$
|
(18
|
)
|
|
$
|
1,482
|
|
|
$
|
852
|
|
|
$
|
371
|
|
(b)(e)
|
$
|
33
|
|
(c)(f)
|
$
|
1,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
September 30, 2012
|
|
December 31, 2011
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
$
|
34,120
|
|
|
$
|
25,761
|
|
|
$
|
2,168
|
|
|
$
|
62,049
|
|
|
$
|
31,816
|
|
|
$
|
23,459
|
|
|
$
|
1,913
|
|
|
$
|
57,188
|
|
(a)
|
Interest expense allocated from NEECH is based on a deemed capital structure of
70%
debt. For this purpose, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate and Other.
|
(b)
|
See Note 5 for a discussion of NEER's tax benefits related to PTCs. 2011 includes after-tax loss on natural gas-fired generating assets held for sale of $
91 million
. See Note 3 - Nonrecurring Fair Value Measurements.
|
(c)
|
Includes after-tax loss on natural gas-fired generating assets held for sale of
$6 million
. See Note 3 - Nonrecurring Fair Value Measurements.
|
(d)
|
Includes impairment charges of approximately
$51 million
. See Note 3 - Nonrecurring Fair Value Measurements.
|
(e)
|
Includes after-tax impairment charges of approximately
$31 million
. See Note 3 - Nonrecurring Fair Value Measurements.
|
(f)
|
Includes the state deferred income tax benefit of approximately
$64 million
. See Note 5.
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
—
|
|
|
$
|
871
|
|
|
$
|
2,972
|
|
|
$
|
3,843
|
|
|
$
|
—
|
|
|
$
|
1,232
|
|
|
$
|
3,150
|
|
|
$
|
4,382
|
|
Operating expenses
|
(5
|
)
|
|
(836
|
)
|
|
(2,253
|
)
|
|
(3,094
|
)
|
|
(4
|
)
|
|
(973
|
)
|
|
(2,494
|
)
|
|
(3,471
|
)
|
||||||||
Interest expense
|
(2
|
)
|
|
(155
|
)
|
|
(102
|
)
|
|
(259
|
)
|
|
(3
|
)
|
|
(164
|
)
|
|
(98
|
)
|
|
(265
|
)
|
||||||||
Equity in earnings of subsidiaries
|
416
|
|
|
—
|
|
|
(416
|
)
|
|
—
|
|
|
416
|
|
|
—
|
|
|
(416
|
)
|
|
—
|
|
||||||||
Other income (deductions) - net
|
4
|
|
|
61
|
|
|
14
|
|
|
79
|
|
|
1
|
|
|
(86
|
)
|
|
4
|
|
|
(81
|
)
|
||||||||
Income (loss) before income taxes
|
413
|
|
|
(59
|
)
|
|
215
|
|
|
569
|
|
|
410
|
|
|
9
|
|
|
146
|
|
|
565
|
|
||||||||
Income tax expense (benefit)
|
(2
|
)
|
|
(82
|
)
|
|
238
|
|
|
154
|
|
|
3
|
|
|
(60
|
)
|
|
215
|
|
|
158
|
|
||||||||
Net income (loss)
|
$
|
415
|
|
|
$
|
23
|
|
|
$
|
(23
|
)
|
|
$
|
415
|
|
|
$
|
407
|
|
|
$
|
69
|
|
|
$
|
(69
|
)
|
|
$
|
407
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
NEE(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
—
|
|
|
$
|
3,112
|
|
|
$
|
7,769
|
|
|
$
|
10,881
|
|
|
$
|
—
|
|
|
$
|
3,285
|
|
|
$
|
8,191
|
|
|
$
|
11,476
|
|
Operating expenses
|
(13
|
)
|
|
(2,346
|
)
|
|
(5,907
|
)
|
|
(8,266
|
)
|
|
(11
|
)
|
|
(2,662
|
)
|
|
(6,557
|
)
|
|
(9,230
|
)
|
||||||||
Interest expense
|
(8
|
)
|
|
(479
|
)
|
|
(308
|
)
|
|
(795
|
)
|
|
(10
|
)
|
|
(486
|
)
|
|
(279
|
)
|
|
(775
|
)
|
||||||||
Equity in earnings of subsidiaries
|
1,480
|
|
|
—
|
|
|
(1,480
|
)
|
|
—
|
|
|
1,214
|
|
|
—
|
|
|
(1,214
|
)
|
|
—
|
|
||||||||
Other income (deductions) - net
|
5
|
|
|
180
|
|
|
30
|
|
|
215
|
|
|
1
|
|
|
40
|
|
|
17
|
|
|
58
|
|
||||||||
Income (loss) before income taxes
|
1,464
|
|
|
467
|
|
|
104
|
|
|
2,035
|
|
|
1,194
|
|
|
177
|
|
|
158
|
|
|
1,529
|
|
||||||||
Income tax expense (benefit)
|
(18
|
)
|
|
(29
|
)
|
|
600
|
|
|
553
|
|
|
(62
|
)
|
|
(185
|
)
|
|
520
|
|
|
273
|
|
||||||||
Net income (loss)
|
$
|
1,482
|
|
|
$
|
496
|
|
|
$
|
(496
|
)
|
|
$
|
1,482
|
|
|
$
|
1,256
|
|
|
$
|
362
|
|
|
$
|
(362
|
)
|
|
$
|
1,256
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Comprehensive income (loss)
|
$
|
386
|
|
|
$
|
(6
|
)
|
|
$
|
6
|
|
|
$
|
386
|
|
|
$
|
178
|
|
|
$
|
(160
|
)
|
|
$
|
160
|
|
|
$
|
178
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Comprehensive income (loss)
|
$
|
1,417
|
|
|
$
|
437
|
|
|
$
|
(437
|
)
|
|
$
|
1,417
|
|
|
$
|
976
|
|
|
$
|
76
|
|
|
$
|
(76
|
)
|
|
$
|
976
|
|
(a)
|
Represents FPL and consolidating adjustments.
|
(a)
|
Represents FPL and consolidating adjustments.
|
(a)
|
Represents FPL and consolidating adjustments.
|
|
Net Income
|
|
Earnings Per Share,
assuming dilution
|
|
Net Income
|
|
Earnings Per Share,
assuming dilution
|
||||||||||||||||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||||||||||
|
(millions, except per share amounts)
|
||||||||||||||||||||||||||||||
FPL
|
$
|
392
|
|
|
$
|
347
|
|
|
$
|
0.93
|
|
|
$
|
0.83
|
|
|
$
|
984
|
|
|
$
|
852
|
|
|
$
|
2.35
|
|
|
$
|
2.03
|
|
NEER
(a)
|
44
|
|
|
67
|
|
|
0.10
|
|
|
0.16
|
|
|
516
|
|
|
371
|
|
|
1.23
|
|
|
0.89
|
|
||||||||
Corporate and Other
|
(21
|
)
|
|
(7
|
)
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|
(18
|
)
|
|
33
|
|
|
(0.03
|
)
|
|
0.08
|
|
||||||||
NEE
|
$
|
415
|
|
|
$
|
407
|
|
|
$
|
0.98
|
|
|
$
|
0.97
|
|
|
$
|
1,482
|
|
|
$
|
1,256
|
|
|
$
|
3.55
|
|
|
$
|
3.00
|
|
(a)
|
NEER’s results reflect an allocation of interest expense from NEECH based on a deemed capital structure of 70% debt and allocated shared service costs.
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||||
|
(millions)
|
||||||||||||||||
Net unrealized mark-to-market after-tax losses from non-qualifying hedge activity
(a)
|
$
|
(130
|
)
|
|
$
|
(38
|
)
|
|
$
|
(28
|
)
|
|
$
|
(85
|
)
|
||
Income (loss) from OTTI after-tax losses on securities held in NEER's nuclear decommissioning funds, net of OTTI reversals
|
$
|
13
|
|
|
$
|
(9
|
)
|
|
$
|
30
|
|
|
$
|
(5
|
)
|
||
After-tax loss on natural gas-fired generating assets held for sale
(b)
|
$
|
—
|
|
|
$
|
(97
|
)
|
|
$
|
—
|
|
|
$
|
(97
|
)
|
(a)
|
For the three and nine months ended September 30, 2012, $131 million and $31 million, respectively, of losses are included in NEER's net income; the balance is included in Corporate and Other. For the three and nine months ended September 30, 2011, $37 million and $84 million, respectively, of losses are included in NEER's net income; the balance is included in Corporate and Other.
|
(b)
|
$91 million is included in NEER's net income; the balance is included in Corporate and Other.
|
•
|
higher results at FPL of $45 million primarily due to
investments in plant in service
which resulted in higher use of FPL's surplus depreciation credit, as permitted under the terms of the stipulation and settlement agreement regarding FPL's base rates (2010 rate agreement),
to earn an 11% return on common equity as determined for regulatory purposes (regulatory ROE) in 2012, higher cost recovery clause results and a higher equity component of AFUDC (AFUDC - equity),
|
•
|
lower results at NEER of $23 million primarily due to higher net unrealized mark-to-market losses from non-qualifying hedge activity and lower results from the existing asset portfolio, partly offset by the absence of a loss recorded in the prior year on natural gas-fired generating assets held for sale and improved results from the customer supply and proprietary power and gas trading businesses, and
|
•
|
lower results at Corporate and Other of $14 million primarily due to an impairment charge on an early stage technology investment.
|
•
|
higher results at FPL of $132 million primarily due to the reasons discussed above for the quarter,
and
|
•
|
higher results at NEER of $145 million primarily due to the absence of a loss recorded in the prior year on natural gas-fired generating assets held for sale, lower net unrealized mark-to-market losses from non-qualifying hedge activity and higher results from new investments, offset in part by lower results from the existing asset portfolio,
|
•
|
lower results at Corporate and Other of $51 million primarily due to lower consolidating income tax adjustments reflecting the absence of the state deferred income tax benefit recorded in 2011, higher interest expense and the impairment charge on an early stage technology investment.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions)
|
||||||||||||||
Retail base
|
$
|
1,243
|
|
|
$
|
1,263
|
|
|
$
|
3,264
|
|
|
$
|
3,261
|
|
Fuel cost recovery
|
1,131
|
|
|
1,312
|
|
|
2,916
|
|
|
3,421
|
|
||||
Other cost recovery clauses and pass-through costs, net of any deferrals
|
536
|
|
|
514
|
|
|
1,416
|
|
|
1,346
|
|
||||
Other, primarily pole attachment rentals, transmission and wholesale sales and customer-related fees
|
65
|
|
|
63
|
|
|
182
|
|
|
172
|
|
||||
Total
|
$
|
2,975
|
|
|
$
|
3,152
|
|
|
$
|
7,778
|
|
|
$
|
8,200
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||||
|
(millions)
|
||||||||||||||||
Fuel and energy charges during the period
|
$
|
1,117
|
|
|
$
|
1,249
|
|
|
$
|
2,805
|
|
|
$
|
3,363
|
|
||
Net collection of previously deferred retail fuel costs
|
9
|
|
|
55
|
|
|
101
|
|
|
42
|
|
||||||
Other, primarily capacity charges, net of any capacity deferral
|
154
|
|
|
175
|
|
|
395
|
|
|
449
|
|
||||||
Total
|
$
|
1,280
|
|
|
$
|
1,479
|
|
|
$
|
3,301
|
|
|
$
|
3,854
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions)
|
||||||||||||||
Surplus depreciation (credit) reversal recorded under the 2010 rate agreement
|
$
|
(33
|
)
|
|
$
|
47
|
|
|
$
|
(363
|
)
|
|
$
|
(84
|
)
|
Other depreciation and amortization recovered under base rates
|
254
|
|
|
239
|
|
|
756
|
|
|
699
|
|
||||
Depreciation and amortization recovered under cost recovery clauses and securitized storm-recovery cost amortization
|
33
|
|
|
13
|
|
|
103
|
|
|
38
|
|
||||
Total
|
$
|
254
|
|
|
$
|
299
|
|
|
$
|
496
|
|
|
$
|
653
|
|
•
|
New retail base rates and charges would be established resulting in an increase in retail base revenues of $378 million on an annualized basis commencing in January 2013.
|
•
|
FPL's allowed regulatory ROE would be 10.70%, with a range of plus or minus 100 basis points. If FPL's earned regulatory ROE were to fall below 9.70%, FPL could seek retail base rate relief. If the earned regulatory ROE were to rise above 11.70%, any party to the proposed 2012 rate agreement other than FPL could seek a review of FPL's retail base rates.
|
•
|
Retail base rates would be increased by the annualized base revenue requirements for FPL's three modernization projects (Cape Canaveral, Riviera and Port Everglades) as each of the modernized units becomes operational (which is expected in 2013, 2014 and 2016, respectively).
|
•
|
Subject to certain conditions, FPL could amortize, over the term of the proposed 2012 rate agreement, any surplus depreciation reserve remaining at the end of 2012 plus a portion of FPL's fossil dismantlement reserve (collectively, the reserve) in an aggregate amount not to exceed $400 million, provided that in any year of the proposed 2012 rate agreement, FPL would amortize at least enough reserve to maintain a 9.70% earned regulatory ROE but would not amortize any reserve that would result in an earned regulatory ROE in excess of 11.70%.
|
•
|
Future storm restoration costs would be recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that could produce 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 were to exceed $800 million in any given calendar year, FPL could request an increase to the $4 surcharge to recover the amount above $800 million.
|
|
Increase (Decrease)
From Prior Period
|
||||||
|
Three Months Ended
September 30, 2012 |
|
Nine Months Ended
September 30, 2012 |
||||
|
(millions)
|
||||||
New investments
(a)
|
$
|
24
|
|
|
$
|
67
|
|
Existing assets:
(a)
|
|
|
|
||||
Wind
|
(6
|
)
|
|
(77
|
)
|
||
Merchant
|
(43
|
)
|
|
(59
|
)
|
||
Contracted
|
(38
|
)
|
|
(38
|
)
|
||
Total existing assets
|
(87
|
)
|
|
(174
|
)
|
||
Gas infrastructure
(b)
|
(26
|
)
|
|
8
|
|
||
Customer supply and proprietary power and gas trading businesses
(b)
|
56
|
|
|
47
|
|
||
Impairment charges in 2011
|
—
|
|
|
31
|
|
||
Interest expense, differential membership costs and other
|
(9
|
)
|
|
(13
|
)
|
||
Change in unrealized mark-to-market non-qualifying hedge activity
(c)(d)
|
(94
|
)
|
|
53
|
|
||
Loss on natural gas-fired generating assets held for sale
(e)
|
91
|
|
|
91
|
|
||
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals
(d)
|
22
|
|
|
35
|
|
||
Net income increase (decrease)
|
$
|
(23
|
)
|
|
$
|
145
|
|
(a)
|
Includes PTCs and state ITCs on wind projects and, for new investments, deferred income tax and other benefits associated with convertible ITCs 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)
|
Does not include allocation of interest expense or corporate general and administrative expenses.
|
(c)
|
See Note 2 and Overview related to derivative instruments.
|
(d)
|
See table in Overview for additional detail.
|
(e)
|
See Note 3 - Nonrecurring Fair Value Measurements for additional information.
|
•
|
the addition of approximately 486 mw of wind and 45 mw of solar generation during or after the three months ended September 30, 2011, and
|
•
|
higher deferred income tax benefits associated with convertible ITCs of approximately $5 million.
|
•
|
the addition of approximately 556 mw of wind and 45 mw of solar generation during or after the nine months ended September 30, 2011, and
|
•
|
higher deferred income tax benefits associated with convertible ITCs of approximately $20 million,
|
•
|
lower after-tax benefits associated with convertible ITCs of $9 million from the sale of membership interests where the investors elected to receive the convertible ITCs related to the underlying wind project; the pretax amount of such benefit is reflected in taxes other than income taxes and other in NEE's condensed consolidated statements of income for the nine months ended September 30, 2011.
|
•
|
lower results at Seabrook of approximately $13 million primarily due to reduced capacity, lower priced hedges and higher O&M and depreciation expenses, partly offset by higher gains on decommissioning funds,
|
•
|
lower results of $25 million in the Electric Reliability Council of Texas (ERCOT) region primarily due to market conditions as the prior year benefited from high market prices in August 2011, and
|
•
|
lower hydro results of $4 million primarily due to a lower water resource and lower priced hedges.
|
•
|
lower results at Seabrook of approximately $24 million primarily due to reduced capacity, lower priced hedges, lower gains on decommissioning funds and higher depreciation expense, partly offset by the absence of an extended refueling outage that occurred in 2011,
|
•
|
lower results of $24 million in the ERCOT region primarily due to market conditions as the prior year benefited from high market prices in August 2011, and
|
•
|
lower hydro results of $14 million primarily due to lower priced hedges and a lower water resource.
|
•
|
the absence of earnings of approximately $25 million from certain natural gas-fired generating plants which were sold in the fourth quarter of 2011 (see Note 3 - Nonrecurring Fair Value Measurements), and
|
•
|
lower results of $8 million at the Point Beach Nuclear Power Plant (Point Beach) primarily due to lower gains on decommissioning funds and higher O&M and depreciation expenses, partly offset by a higher contract price and the addition of approximately 83 mw of capacity which was completed in December 2011.
|
•
|
the absence of earnings of approximately $34 million from the natural gas-fired generating plants which were sold in the fourth quarter of 2011, and
|
•
|
lower results of $19 million related to the expiration of power sales agreements at certain joint venture projects, which is reflected in equity in earnings of equity method investees in NEE's condensed consolidated statements of income,
|
•
|
higher results of $14 million at Point Beach primarily due to the absence of a planned outage in the prior year and the addition of 167 mw of capacity, approximately one-half of which was completed in June 2011 and the other half of which was completed in December 2011, partly offset by higher O&M and depreciation expenses.
|
•
|
the absence of revenues of approximately $159 million associated with five natural gas-fired generating plants sold in the fourth quarter of 2011,
|
•
|
unrealized mark-to-market losses of $161 million from non-qualifying hedges compared to $32 million of such losses in 2011, and
|
•
|
unfavorable market conditions primarily in the ERCOT and New England Power Pool (NEPOOL) regions and lower revenues at NextEra Energy Power Marketing, LLC (PMI) (collectively, $156 million),
|
•
|
higher revenues of $11 million at NEER's contracted nuclear facilities primarily due to favorable contract pricing and the addition of capacity at Point Beach, and
|
•
|
higher revenues of $52 million from new investments.
|
•
|
the absence of revenues of approximately $402 million associated with five natural gas-fired generating plants sold in the fourth quarter of 2011, and
|
•
|
unfavorable market conditions in the ERCOT and NEPOOL regions and lower revenues at PMI and the existing wind projects (collectively, $98 million),
|
•
|
higher revenues from new investments of $147 million,
|
•
|
higher revenues of $92 million at NEER's contracted nuclear facilities primarily due to the absence of a 2011 planned outage, the addition of capacity at Point Beach and favorable contract pricing, and
|
•
|
unrealized mark-to-market gains of $62 million from non-qualifying hedges compared to $13 million of losses on such hedges in 2011.
|
•
|
the absence of operating expenses associated with five natural gas-fired generating plants sold in the fourth quarter of 2011, and
|
•
|
the absence of the $51 million impairment charge recorded in 2011.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions)
|
||||||||||||||
Interest expense, net of allocations to NEER
|
$
|
(24
|
)
|
|
$
|
(19
|
)
|
|
$
|
(68
|
)
|
|
$
|
(51
|
)
|
Interest income
|
10
|
|
|
9
|
|
|
27
|
|
|
24
|
|
||||
Federal and state income tax benefits
|
4
|
|
|
(1
|
)
|
|
18
|
|
|
40
|
|
||||
Other
|
(11
|
)
|
|
4
|
|
|
5
|
|
|
20
|
|
||||
Net income (loss)
|
$
|
(21
|
)
|
|
$
|
(7
|
)
|
|
$
|
(18
|
)
|
|
$
|
33
|
|
|
NEE
|
|
FPL
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
(millions)
|
||||||||||||||
Sources of cash:
|
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities
|
$
|
3,157
|
|
|
$
|
3,117
|
|
|
$
|
2,302
|
|
|
$
|
1,748
|
|
Long-term borrowings and change in loan proceeds restricted for construction
|
4,438
|
|
|
2,321
|
|
|
594
|
|
|
248
|
|
||||
Proceeds from the sale of differential membership interests, net of payments to investors
|
361
|
|
|
210
|
|
|
—
|
|
|
—
|
|
||||
Capital contribution from NEE
|
—
|
|
|
—
|
|
|
240
|
|
|
310
|
|
||||
Cash grants under the Recovery Act
|
105
|
|
|
503
|
|
|
—
|
|
|
202
|
|
||||
Issuances of common stock - net
|
386
|
|
|
39
|
|
|
—
|
|
|
—
|
|
||||
Net increase in short-term debt
|
396
|
|
|
946
|
|
|
142
|
|
|
307
|
|
||||
Other sources - net
|
15
|
|
|
91
|
|
|
36
|
|
|
42
|
|
||||
Total sources of cash
|
8,858
|
|
|
7,227
|
|
|
3,314
|
|
|
2,857
|
|
||||
Uses of cash:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures and independent power and other investments and nuclear fuel purchases
|
(6,689
|
)
|
|
(4,317
|
)
|
|
(3,198
|
)
|
|
(2,351
|
)
|
||||
Retirements of long-term debt
|
(1,321
|
)
|
|
(1,688
|
)
|
|
(50
|
)
|
|
(45
|
)
|
||||
Dividends
|
(752
|
)
|
|
(689
|
)
|
|
—
|
|
|
(400
|
)
|
||||
Repurchases of common stock
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other uses - net
|
(208
|
)
|
|
(195
|
)
|
|
(82
|
)
|
|
(51
|
)
|
||||
Total uses of cash
|
(8,989
|
)
|
|
(6,889
|
)
|
|
(3,330
|
)
|
|
(2,847
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
$
|
(131
|
)
|
|
$
|
338
|
|
|
$
|
(16
|
)
|
|
$
|
10
|
|
|
Nine Months Ended September 30,
|
||||||
|
2012
|
|
2011
|
||||
|
(millions)
|
||||||
FPL:
|
|
|
|
||||
Generation:
|
|
|
|
||||
New
|
$
|
1,852
|
|
|
$
|
943
|
|
Existing
|
428
|
|
|
595
|
|
||
Transmission and distribution
|
692
|
|
|
566
|
|
||
Nuclear fuel
|
137
|
|
|
223
|
|
||
General and other
|
57
|
|
|
169
|
|
||
Other, primarily the exclusion of AFUDC - equity and change in accrued property additions
|
32
|
|
|
(145
|
)
|
||
Total
|
3,198
|
|
|
2,351
|
|
||
NEER:
|
|
|
|
||||
Wind
|
1,498
|
|
|
637
|
|
||
Solar
|
929
|
|
|
317
|
|
||
Nuclear, including nuclear fuel
|
203
|
|
|
479
|
|
||
Other
|
460
|
|
|
329
|
|
||
Total
|
3,090
|
|
|
1,762
|
|
||
Corporate and Other
|
401
|
|
|
204
|
|
||
Total capital expenditures and independent power and other investments and nuclear fuel purchases
|
$
|
6,689
|
|
|
$
|
4,317
|
|
|
|
|
|
|
|
|
Maturity Date
|
||||||||
|
FPL
|
|
NEECH
|
|
Total
|
|
FPL
|
|
NEECH
|
||||||
|
|
|
(millions)
|
|
|
|
|
|
|
||||||
Bank revolving line of credit facilities
(a)
|
$
|
3,014
|
|
|
$
|
4,569
|
|
|
$
|
7,583
|
|
|
(b)
|
|
(b)
|
Less letters of credit
|
(3
|
)
|
|
(1,207
|
)
|
|
(1,210
|
)
|
|
|
|
|
|||
|
3,011
|
|
|
3,362
|
|
|
6,373
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Revolving credit facility
|
235
|
|
|
—
|
|
|
235
|
|
|
2014
|
|
|
|||
Less borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
|
235
|
|
|
—
|
|
|
235
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Letter of credit facility
(c)
|
—
|
|
|
200
|
|
|
200
|
|
|
|
|
2015
|
|||
Less letters of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
|
—
|
|
|
200
|
|
|
200
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Subtotal
|
3,246
|
|
|
3,562
|
|
|
6,808
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
20
|
|
|
226
|
|
|
246
|
|
|
|
|
|
|||
Less commercial paper and short-term debt
|
(472
|
)
|
|
(1,102
|
)
|
|
(1,574
|
)
|
|
|
|
|
|||
Net available liquidity
|
$
|
2,794
|
|
|
$
|
2,686
|
|
|
$
|
5,480
|
|
|
|
|
|
(a)
|
Provide for the funding of loans up to $7,583 million ($3,014 million for FPL) and the issuance of letters of credit up to $4,083 million ($1,564 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 NEECH’s 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 in the event they are tendered by individual bond holders and not remarketed prior to maturity.
|
(b)
|
Approximately $1,114 million of FPL's and $1,469 million of NEECH's bank revolving line of credit facilities expire in 2013. The remaining portion of bank revolving line of credit facilities for FPL and NEECH expires in 2017.
|
(c)
|
Only available for the issuance of letters of credit.
|
|
Original
Amount
|
|
Amount Remaining
Available at September 30, 2012 |
|
Rate
|
|
Maturity
Date
|
|
Related
Project Use
|
|
(millions)
|
|
|
|
|
|
|
||
NEECH and NEER:
|
|
|
|
|
|
|
|
|
|
Canadian bank revolving credit agreements
(a)(b)
|
C$300
|
|
$2
|
|
Variable
|
|
2013
|
|
Canadian renewable generating assets
|
Revolving loan agreement
(a)
|
€170
|
|
$92
|
|
Variable
|
|
2014
|
|
Construction of Spain solar project
|
NEER:
|
|
|
|
|
|
|
|
|
|
Senior secured limited-recourse loan agreement
(c)(d)
|
€589
|
|
$233
|
|
Variable
|
|
2030
|
|
Construction of Spain solar project
|
Term loan facility
(c)(d)
|
$150
|
|
$150
|
|
Variable
|
|
2019
|
|
Construction of Genesis solar project
|
Lone Star:
|
|
|
|
|
|
|
|
|
|
Senior secured limited-recourse loan agreement
(c)(e)
|
$387
|
|
$129
|
|
Variable
|
|
2016
|
|
Construction of Lone Star transmission line and substations
|
(a)
|
Includes, as a precondition to borrowing or issuing letters of credit, as well as default and related payment acceleration, provisions that require NEE's ratio of funded debt to total capitalization to not exceed a stated ratio. Payment obligations are guaranteed by NEE pursuant to the 1998 guarantee agreement with NEECH.
|
(b)
|
Available for general corporate purposes; the current intent is for it to be used for the purchase, development, construction, and/or operation of Canadian renewable generating assets.
|
(c)
|
Includes default and related payment acceleration provisions for, among other things, failure to comply with certain covenants, including requirements that construction of the project must be completed by a certain date.
|
(d)
|
Borrowings are preconditioned on equity being contributed by the project's parent, and are drawn on a pro-rata basis with those equity contributions. The total equity funding commitment and, until certain conditions or obligations related to the project are met, certain obligations, including all or a portion of the debt payment obligations, are guaranteed by NEECH, which guarantee obligations are in turn guaranteed by NEE. The related NEECH guarantee contains default and acceleration provisions relating to, among other things, NEE's ratio of funded debt to total capitalization exceeding a specified ratio.
|
(e)
|
Borrowings are preconditioned on equity being contributed by Lone Star's parent, and are drawn on a pro-rata basis with those equity contributions. The total equity funding commitment has been guaranteed by NEECH, which guarantee obligations are in turn guaranteed by NEE. The related NEECH guarantee contains default provisions and related provisions for acceleration of the unfunded equity commitment relating to, among other things, NEE's ratio of funded debt to total capitalization exceeding a specified ratio.
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Three months ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at June 30, 2012
|
$
|
113
|
|
|
$
|
899
|
|
|
$
|
4
|
|
|
$
|
(302
|
)
|
|
$
|
714
|
|
Reclassification to realized at settlement of contracts
|
24
|
|
|
27
|
|
|
(2
|
)
|
|
185
|
|
|
234
|
|
|||||
Inception value of new contracts
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Net option premium purchases (issuances)
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Changes in fair value excluding reclassification to realized
|
33
|
|
|
(254
|
)
|
|
—
|
|
|
90
|
|
|
(131
|
)
|
|||||
Fair value of contracts outstanding at September 30, 2012
|
189
|
|
|
672
|
|
|
2
|
|
|
(27
|
)
|
|
836
|
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
(120
|
)
|
|||||||||
Total mark-to-market energy contract net assets (liabilities) at September 30, 2012
|
$
|
189
|
|
|
$
|
672
|
|
|
$
|
2
|
|
|
$
|
(27
|
)
|
|
$
|
716
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Nine months ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at December 31, 2011
|
$
|
15
|
|
|
$
|
720
|
|
|
$
|
8
|
|
|
$
|
(501
|
)
|
|
$
|
242
|
|
Reclassification to realized at settlement of contracts
|
49
|
|
|
(63
|
)
|
|
(6
|
)
|
|
560
|
|
|
540
|
|
|||||
Inception value of new contracts
|
6
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Net option premium purchases (issuances)
|
(9
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Changes in fair value excluding reclassification to realized
|
128
|
|
|
12
|
|
|
—
|
|
|
(86
|
)
|
|
54
|
|
|||||
Fair value of contracts outstanding at September 30, 2012
|
189
|
|
|
672
|
|
|
2
|
|
|
(27
|
)
|
|
836
|
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
(120
|
)
|
|||||||||
Total mark-to-market energy contract net assets (liabilities) at September 30, 2012
|
$
|
189
|
|
|
$
|
672
|
|
|
$
|
2
|
|
|
$
|
(27
|
)
|
|
$
|
716
|
|
|
September 30, 2012
|
||
|
(millions)
|
||
Current derivative assets
|
$
|
456
|
|
Noncurrent derivative assets
|
875
|
|
|
Current derivative liabilities
|
(384
|
)
|
|
Noncurrent derivative liabilities
|
(231
|
)
|
|
NEE's total mark-to-market energy contract net assets
|
$
|
716
|
|
|
|
Maturity
|
||||||||||||||||||||||||||
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
|
(millions)
|
||||||||||||||||||||||||||
Trading:
|
|
|
||||||||||||||||||||||||||
Quoted prices in active markets for identical assets
|
|
$
|
15
|
|
|
$
|
(79
|
)
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(54
|
)
|
Significant other observable inputs
|
|
(53
|
)
|
|
47
|
|
|
5
|
|
|
22
|
|
|
30
|
|
|
29
|
|
|
80
|
|
|||||||
Significant unobservable inputs
|
|
27
|
|
|
39
|
|
|
39
|
|
|
22
|
|
|
16
|
|
|
20
|
|
|
163
|
|
|||||||
Total
|
|
(11
|
)
|
|
7
|
|
|
48
|
|
|
50
|
|
|
46
|
|
|
49
|
|
|
189
|
|
|||||||
Owned Assets - Non-Qualifying:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Quoted prices in active markets for identical assets
|
|
(3
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Significant other observable inputs
|
|
59
|
|
|
78
|
|
|
66
|
|
|
69
|
|
|
77
|
|
|
13
|
|
|
362
|
|
|||||||
Significant unobservable inputs
|
|
13
|
|
|
1
|
|
|
26
|
|
|
37
|
|
|
40
|
|
|
197
|
|
|
314
|
|
|||||||
Total
|
|
69
|
|
|
77
|
|
|
90
|
|
|
109
|
|
|
117
|
|
|
210
|
|
|
672
|
|
|||||||
Owned Assets - OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Quoted prices in active markets for identical assets
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Significant other observable inputs
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||||
Significant unobservable inputs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Owned Assets - FPL Cost Recovery Clauses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Quoted prices in active markets for identical assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Significant other observable inputs
|
|
(110
|
)
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||||
Significant unobservable inputs
|
|
1
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||||
Total
|
|
(109
|
)
|
|
81
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|||||||
Total sources of fair value
|
|
$
|
(49
|
)
|
|
$
|
165
|
|
|
$
|
139
|
|
|
$
|
159
|
|
|
$
|
163
|
|
|
$
|
259
|
|
|
$
|
836
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE
Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Three months ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at June 30, 2011
|
$
|
9
|
|
|
$
|
352
|
|
|
$
|
30
|
|
|
$
|
(140
|
)
|
|
$
|
251
|
|
Reclassification to realized at settlement of contracts
|
(15
|
)
|
|
(16
|
)
|
|
(11
|
)
|
|
85
|
|
|
43
|
|
|||||
Net option premium purchases (issuances)
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|||||
Changes in fair value excluding reclassification to realized
|
22
|
|
|
(63
|
)
|
|
—
|
|
|
(233
|
)
|
|
(274
|
)
|
|||||
Fair value of contracts outstanding at September 30, 2011
|
(30
|
)
|
|
273
|
|
|
19
|
|
|
(288
|
)
|
|
(26
|
)
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
|||||
Total mark-to-market energy contract net assets (liabilities) at September 30, 2011
|
$
|
(30
|
)
|
|
$
|
273
|
|
|
$
|
19
|
|
|
$
|
(288
|
)
|
|
$
|
64
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE
Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Nine months ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at December 31, 2010
|
$
|
25
|
|
|
$
|
422
|
|
|
$
|
49
|
|
|
$
|
(236
|
)
|
|
$
|
260
|
|
Reclassification to realized at settlement of contracts
|
(13
|
)
|
|
(74
|
)
|
|
(30
|
)
|
|
248
|
|
|
131
|
|
|||||
Net option premium purchases (issuances)
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|||||
Changes in fair value excluding reclassification to realized
|
35
|
|
|
(75
|
)
|
|
—
|
|
|
(300
|
)
|
|
(340
|
)
|
|||||
Fair value of contracts outstanding at September 30, 2011
|
(30
|
)
|
|
273
|
|
|
19
|
|
|
(288
|
)
|
|
(26
|
)
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
|||||
Total mark-to-market energy contract net assets (liabilities) at September 30, 2011
|
$
|
(30
|
)
|
|
$
|
273
|
|
|
$
|
19
|
|
|
$
|
(288
|
)
|
|
$
|
64
|
|
|
Trading
|
|
Non-Qualifying Hedges
and Hedges in OCI and
FPL Cost Recovery Clauses
(a)
|
|
Total
|
||||||||||||||||||||||||||||||
|
FPL
|
|
NEER
|
|
NEE
|
|
FPL
|
|
NEER
|
|
NEE
|
|
FPL
|
|
NEER
|
|
NEE
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2011
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
38
|
|
|
$
|
50
|
|
|
$
|
25
|
|
|
$
|
38
|
|
|
$
|
50
|
|
|
$
|
26
|
|
September 30, 2012
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
35
|
|
|
$
|
70
|
|
|
$
|
52
|
|
|
$
|
35
|
|
|
$
|
69
|
|
|
$
|
51
|
|
Average for the nine months ended September 30, 2012
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
42
|
|
|
$
|
60
|
|
|
$
|
45
|
|
|
$
|
42
|
|
|
$
|
60
|
|
|
$
|
45
|
|
(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.
|
|
September 30, 2012
|
|
December 31, 2011
|
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
||||||||
|
(millions)
|
|
||||||||||||||
NEE:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
||||||||
Special use funds
|
$
|
2,046
|
|
|
$
|
2,046
|
|
(a)
|
$
|
1,897
|
|
|
$
|
1,897
|
|
(a)
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
Notes receivable
|
$
|
500
|
|
|
$
|
681
|
|
(b)
|
$
|
503
|
|
|
$
|
535
|
|
(b)
|
Debt securities
|
$
|
115
|
|
|
$
|
115
|
|
(a)
|
$
|
89
|
|
|
$
|
89
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
24,769
|
|
|
$
|
27,674
|
|
(c)
|
$
|
21,614
|
|
|
$
|
23,699
|
|
(c)
|
Interest rate swaps - net unrealized losses
|
$
|
(311
|
)
|
|
$
|
(311
|
)
|
(d)
|
$
|
(283
|
)
|
|
$
|
(283
|
)
|
(d)
|
FPL:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income securities - special use funds
|
$
|
1,609
|
|
|
$
|
1,609
|
|
(a)
|
$
|
1,499
|
|
|
$
|
1,499
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
8,084
|
|
|
$
|
9,984
|
|
(c)
|
$
|
7,533
|
|
|
$
|
9,078
|
|
(c)
|
(a)
|
Estimated using quoted market prices for these or similar issues.
|
(b)
|
Estimated using a discounted cash flow valuation technique based on certain observable yield curves and indices considering the credit profile of the borrower.
|
(c)
|
Estimated using either quoted market prices for the same or similar issues or discounted cash flow valuation technique, considering the current credit spread of the debtor.
|
(d)
|
Modeled internally using discounted cash flow valuation technique and applying a credit valuation adjustment.
|
(a)
|
Three-month London InterBank Offered Rate (LIBOR) plus 0.4726%.
|
(b)
|
Three-month LIBOR plus 0.7980%.
|
(c)
|
Three-month LIBOR plus 4.8275%.
|
(d)
|
Three-month LIBOR plus 6.675%.
|
(e)
|
Three-month LIBOR plus 3.945%.
|
(f)
|
Three-month LIBOR plus 2.05%.
|
(g)
|
Three-month LIBOR.
|
(h)
|
Six-month LIBOR.
|
(i)
|
Exchange of payments does not begin until December 2016, December 2016, May 2017, December 2013, June 2018, December 2012 and June 2013, respectively.
|
(j)
|
Three-month Banker's Acceptance Rate.
|
(k)
|
One-month Euro Interbank Offered Rate (Euribor).
|
(l)
|
Six-month Euribor.
|
(m)
|
Rate varies over time from 0.4914% to 3.0048%.
|
•
|
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 U.S.
|
•
|
Overall credit risk is managed through established credit policies and is overseen by the EMC.
|
•
|
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.
|
•
|
Master netting agreements are used to offset cash and non-cash gains and losses arising from derivative instruments with the same counterparty. NEE’s policy is to have master netting agreements in place with significant counterparties.
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Changes in Internal Control over Financial Reporting
|
(c)
|
Information regarding purchases made by NEE of its common stock during the three months ended September 30, 2012 is as follows:
|
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)
|
|||
7/1/12 - 7/31/12
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
13,274,748
|
8/1/12 - 8/31/12
|
|
5,245
|
|
|
$
|
69.23
|
|
|
—
|
|
13,274,748
|
9/1/12 - 9/30/12
|
|
530
|
|
|
$
|
67.48
|
|
|
—
|
|
13,274,748
|
Total
|
|
5,775
|
|
|
$
|
69.07
|
|
|
—
|
|
|
(a)
|
Includes: (1) in August 2012, 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 2011 Long-Term Incentive Plan and the NextEra Energy, Inc. Amended and Restated Long-Term Incentive Plan (former LTIP); and (2) in September 2012, shares of common stock purchased as a reinvestment of dividends by the trustee of a grantor trust in connection with NEE's obligation under a February 2006 grant under the former LTIP to an executive officer of deferred retirement share awards.
|
(b)
|
In February 2005, NEE's Board of Directors authorized common stock repurchases of up to 20 million shares of common stock over an unspecified period, which authorization was most recently reaffirmed and ratified by the Board of Directors in July 2011.
|
(a)
|
None
|
(b)
|
None
|
(c)
|
Other events
|
(i)
|
Reference is made to Item 1. Business - NEE's Operating Subsidiaries - NEER - Generation and Other Operations - Nuclear Facilities in the 2011 Form 10-K.
|
(ii)
|
Reference is made to Item 1. Business - NEE Environmental Matters - Environmental Regulations - Clean Air Interstate Rule (CAIR)/Cross-State Air Pollution Rule (CSAPR) in the 2011 Form 10-K.
|
(iii)
|
Reference is made to Item 2. Properties - Generating Facilities - FPL in the 2011 Form 10-K.
|
Exhibit
Number
|
|
Description
|
|
NEE
|
|
FPL
|
*4(a)
|
|
Purchase Contract Agreement dated as of September 1, 2012, between NextEra Energy, Inc. and The Bank of New York Mellon, as Purchase Contract Agent (filed as Exhibit 4(a) to Form 8-K dated September 11, 2012, File No. 1-8841)
|
|
x
|
|
|
*4(b)
|
|
Pledge Agreement, dated as of September 1, 2012, between NextEra Energy, Inc., 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 11, 2012, File No. 1-8841)
|
|
x
|
|
|
*4(c)
|
|
Officer's Certificate of NextEra Energy Capital Holdings, Inc., dated September 11, 2012, creating the Series F Debentures due September 1, 2017 (filed as Exhibit 4(c) to Form 8-K dated September 11, 2012, File No. 1-8841)
|
|
x
|
|
|
*4(d)
|
|
Officer's Certificate of NextEra Energy Capital Holdings, Inc., dated September 21, 2012, creating the 1.20% Debentures, Series due June 1, 2015 (filed as Exhibit 4 to Form 8-K dated September 21, 2012, File No. 1-8841)
|
|
x
|
|
|
4(e)
|
|
First Supplemental Indenture to Indenture (For Unsecured Debt Securities) dated as of June 1, 1999, dated as of September 21, 2012, between NextEra Energy Capital Holdings, Inc. and The Bank of New York Mellon, as Trustee
|
|
x
|
|
|
12(a)
|
|
Computation of Ratios
|
|
x
|
|
|
12(b)
|
|
Computation of Ratios
|
|
|
|
x
|
31(a)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of NextEra Energy, Inc.
|
|
x
|
|
|
31(b)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of NextEra Energy, Inc.
|
|
x
|
|
|
31(c)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Florida Power & Light Company
|
|
|
|
x
|
31(d)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Florida Power & Light Company
|
|
|
|
x
|
32(a)
|
|
Section 1350 Certification of NextEra Energy, Inc.
|
|
x
|
|
|
32(b)
|
|
Section 1350 Certification of Florida Power & Light Company
|
|
|
|
x
|
101.INS
|
|
XBRL Instance Document
|
|
x
|
|
x
|
101.SCH
|
|
XBRL Schema Document
|
|
x
|
|
x
|
101.PRE
|
|
XBRL Presentation Linkbase Document
|
|
x
|
|
x
|
101.CAL
|
|
XBRL Calculation Linkbase Document
|
|
x
|
|
x
|
101.LAB
|
|
XBRL Label Linkbase Document
|
|
x
|
|
x
|
101.DEF
|
|
XBRL Definition Linkbase Document
|
|
x
|
|
x
|
|
|
SIGNATURES
|
|
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
|
|||
|
|
|
|
Date:
|
October 25, 2012
|
|
|
|
|
|
|
|
|
NEXTERA ENERGY, INC.
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
CHRIS N. FROGGATT
|
|
|
|
Chris N. Froggatt
Vice President, Controller and Chief Accounting Officer
of NextEra Energy, Inc.
(Principal Accounting Officer of NextEra Energy, Inc.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLORIDA POWER & LIGHT COMPANY
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
KIMBERLY OUSDAHL
|
|
|
|
Kimberly Ousdahl
Vice President, Controller and Chief Accounting Officer
of Florida Power & Light Company
(Principal Accounting Officer of
Florida Power & Light Company)
|
|
|
NextEra Energy Capital Holdings, Inc.,
|
|
|
as Issuer
|
|
|
|
|
|
By:
|
/s/ Aldo Portales
|
|
|
Name: Aldo Portales
|
|
|
Title: Assistant Treasurer
|
|
|
|
|
|
|
|
The Bank of New York Mellon,
|
|
|
|
as Trustee
|
|
|
|
|
By:
|
/s/ Laurence J. O'Brien
|
|
|
Name: Laurence J. O'Brien
|
|
|
Title: Vice President
|
|
Nine Months Ended
September 30, 2012 |
||
|
(millions of dollars)
|
||
Earnings, as defined:
|
|
||
Net income
|
$
|
1,482
|
|
Income taxes
|
553
|
|
|
Fixed charges included in the determination of net income, as below
|
855
|
|
|
Amortization of capitalized interest
|
18
|
|
|
Distributed income of equity method investees
|
20
|
|
|
Less: Equity in earnings of equity method investees
|
17
|
|
|
Total earnings, as defined
|
$
|
2,911
|
|
|
|
||
Fixed charges, as defined:
|
|
||
Interest expense
|
$
|
795
|
|
Rental interest factor
|
36
|
|
|
Allowance for borrowed funds used during construction
|
24
|
|
|
Fixed charges included in the determination of net income
|
855
|
|
|
Capitalized interest
|
102
|
|
|
Total fixed charges, as defined
|
$
|
957
|
|
|
|
||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
3.04
|
|
(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.
|
|
Nine Months Ended
September 30, 2012 |
||
|
(millions of dollars)
|
||
Earnings, as defined:
|
|
||
Net income
|
$
|
984
|
|
Income taxes
|
600
|
|
|
Fixed charges included in the determination of net income, as below
|
338
|
|
|
Total earnings, as defined
|
$
|
1,922
|
|
|
|
||
Fixed charges, as defined:
|
|
||
Interest expense
|
$
|
314
|
|
Rental interest factor
|
8
|
|
|
Allowance for borrowed funds used during construction
|
16
|
|
|
Total fixed charges, as defined
|
$
|
338
|
|
|
|
||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
5.69
|
|
(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.
|
1.
|
I have reviewed this Form 10-Q for the quarterly period ended
September 30, 2012
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.
|
Date:
|
October 25, 2012
|
JAMES L. ROBO
|
James L. Robo
President and Chief Executive Officer
of NextEra Energy, Inc.
|
1.
|
I have reviewed this Form 10-Q for the quarterly period ended
September 30, 2012
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.
|
Date:
|
October 25, 2012
|
MORAY P. DEWHURST
|
Moray P. Dewhurst
Vice Chairman and Chief Financial Officer,
and Executive Vice President - Finance
of NextEra Energy, Inc.
|
1.
|
I have reviewed this Form 10-Q for the quarterly period ended
September 30, 2012
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.
|
Date:
|
October 25, 2012
|
JAMES L. ROBO
|
James L. Robo
Chairman and Chief Executive Officer
of Florida Power & Light Company
|
1.
|
I have reviewed this Form 10-Q for the quarterly period ended
September 30, 2012
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.
|
Date:
|
October 25, 2012
|
MORAY P. DEWHURST
|
Moray P. Dewhurst
Executive Vice President, Finance
and Chief Financial Officer
of Florida Power & Light Company
|
(1)
|
The Quarterly Report on Form 10-Q of NextEra Energy, Inc. (the registrant) for the quarterly period ended
September 30, 2012
(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 the registrant.
|
Dated:
|
October 25, 2012
|
|
JAMES L. ROBO
|
|
|
James L. Robo
President and Chief Executive Officer
of NextEra Energy, Inc.
|
|
|
MORAY P. DEWHURST
|
|
|
Moray P. Dewhurst
Vice Chairman and Chief Financial Officer,
and Executive Vice President - Finance
of NextEra Energy, Inc.
|
|
(1)
|
The Quarterly Report on Form 10-Q of Florida Power & Light Company (the registrant) for the quarterly period ended
September 30, 2012
(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 the registrant.
|
Dated:
|
October 25, 2012
|
|
JAMES L. ROBO
|
|
|
James L. Robo
Chairman and Chief Executive Officer of
Florida Power & Light Company
|
|
|
MORAY P. DEWHURST
|
|
|
Moray P. Dewhurst
Executive Vice President, Finance and
Chief Financial Officer of
Florida Power & Light Company
|
|