|
|
|
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
|
|
|
|
|
|
|
|
|
•
|
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 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, regulations and other standards that may result in capital expenditures, increased operating costs and various 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 material adverse effect on 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 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 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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
OPERATING REVENUES
|
$
|
3,833
|
|
|
$
|
3,667
|
|
|
$
|
7,112
|
|
|
$
|
7,038
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel, purchased power and interchange
|
1,262
|
|
|
1,236
|
|
|
2,327
|
|
|
2,418
|
|
||||
Other operations and maintenance
|
764
|
|
|
795
|
|
|
1,520
|
|
|
1,571
|
|
||||
Impairment charge
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
||||
Depreciation and amortization
|
500
|
|
|
335
|
|
|
918
|
|
|
655
|
|
||||
Taxes other than income taxes and other
|
326
|
|
|
301
|
|
|
632
|
|
|
591
|
|
||||
Total operating expenses
|
2,852
|
|
|
2,667
|
|
|
5,697
|
|
|
5,235
|
|
||||
OPERATING INCOME
|
981
|
|
|
1,000
|
|
|
1,415
|
|
|
1,803
|
|
||||
OTHER INCOME (DEDUCTIONS)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(266
|
)
|
|
(270
|
)
|
|
(537
|
)
|
|
(536
|
)
|
||||
Benefits associated with differential membership interests - net
|
42
|
|
|
22
|
|
|
82
|
|
|
63
|
|
||||
Allowance for equity funds used during construction
|
12
|
|
|
18
|
|
|
38
|
|
|
31
|
|
||||
Interest income
|
19
|
|
|
22
|
|
|
38
|
|
|
42
|
|
||||
Gains on disposal of assets - net
|
9
|
|
|
57
|
|
|
21
|
|
|
67
|
|
||||
Other - net
|
24
|
|
|
1
|
|
|
17
|
|
|
(3
|
)
|
||||
Total other deductions - net
|
(160
|
)
|
|
(150
|
)
|
|
(341
|
)
|
|
(336
|
)
|
||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
821
|
|
|
850
|
|
|
1,074
|
|
|
1,467
|
|
||||
INCOME TAXES
|
211
|
|
|
243
|
|
|
379
|
|
|
399
|
|
||||
INCOME FROM CONTINUING OPERATIONS
|
610
|
|
|
607
|
|
|
695
|
|
|
1,068
|
|
||||
NET GAIN FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES
|
—
|
|
|
—
|
|
|
188
|
|
|
—
|
|
||||
NET INCOME
|
$
|
610
|
|
|
$
|
607
|
|
|
$
|
883
|
|
|
$
|
1,068
|
|
Basic earnings per share of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
1.45
|
|
|
$
|
1.46
|
|
|
$
|
1.64
|
|
|
$
|
2.58
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
0.45
|
|
|
—
|
|
||||
Net income
|
$
|
1.45
|
|
|
$
|
1.46
|
|
|
$
|
2.09
|
|
|
$
|
2.58
|
|
Earnings per share of common stock - assuming dilution:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.44
|
|
|
$
|
1.45
|
|
|
$
|
1.64
|
|
|
$
|
2.57
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
0.44
|
|
|
—
|
|
||||
Net income
|
$
|
1.44
|
|
|
$
|
1.45
|
|
|
$
|
2.08
|
|
|
$
|
2.57
|
|
Dividends per share of common stock
|
$
|
0.66
|
|
|
$
|
0.60
|
|
|
$
|
1.32
|
|
|
$
|
1.20
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
421.8
|
|
|
415.0
|
|
|
421.4
|
|
|
413.7
|
|
||||
Assuming dilution
|
424.8
|
|
|
417.2
|
|
|
424.3
|
|
|
416.0
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
NET INCOME
|
$
|
610
|
|
|
$
|
607
|
|
|
$
|
883
|
|
|
$
|
1,068
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective portion of net unrealized gains (losses) (net of $25 tax expense, $24 tax benefit, $52 tax expense and $26 tax benefit, respectively)
|
36
|
|
|
(42
|
)
|
|
101
|
|
|
(49
|
)
|
||||
Reclassification from accumulated other comprehensive income to net income (net of $9, $2, $22 and $11 tax expense, respectively)
|
18
|
|
|
5
|
|
|
39
|
|
|
21
|
|
||||
Net unrealized gains (losses) on available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on securities still held (net of $1 tax expense, $6 tax benefit, $27 and $25 tax expense, respectively)
|
2
|
|
|
(9
|
)
|
|
42
|
|
|
38
|
|
||||
Reclassification from accumulated other comprehensive income to net income (net of $3, $21, $7 and $25 tax benefit, respectively)
|
(4
|
)
|
|
(32
|
)
|
|
(10
|
)
|
|
(37
|
)
|
||||
Defined benefit pension and other benefits plans (net of less than a million, $5 and $4 tax expense and $3 tax benefit, respectively)
|
—
|
|
|
6
|
|
|
7
|
|
|
(6
|
)
|
||||
Net unrealized gains (losses) on foreign currency translation (net of $11, $1 and $16 tax benefit and $2 tax expense, respectively)
|
(23
|
)
|
|
(3
|
)
|
|
(32
|
)
|
|
3
|
|
||||
Other comprehensive income (loss) related to equity method investee (net of $3, $1 and $4 tax expense and $4 tax benefit, respectively)
|
5
|
|
|
(21
|
)
|
|
6
|
|
|
(6
|
)
|
||||
Total other comprehensive income (loss), net of tax
|
34
|
|
|
(96
|
)
|
|
153
|
|
|
(36
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME
|
$
|
644
|
|
|
$
|
511
|
|
|
$
|
1,036
|
|
|
$
|
1,032
|
|
|
June 30,
2013 |
|
December 31,
2012 |
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
||||
Electric plant in service and other property
|
$
|
60,392
|
|
|
$
|
57,054
|
|
Nuclear fuel
|
1,838
|
|
|
1,895
|
|
||
Construction work in progress
|
4,181
|
|
|
5,968
|
|
||
Less accumulated depreciation and amortization
|
(15,951
|
)
|
|
(15,504
|
)
|
||
Total property, plant and equipment - net ($4,692 and $4,487 related to VIEs, respectively)
|
50,460
|
|
|
49,413
|
|
||
CURRENT ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
411
|
|
|
329
|
|
||
Customer receivables, net of allowances of $10 and $10, respectively
|
1,809
|
|
|
1,487
|
|
||
Other receivables
|
311
|
|
|
569
|
|
||
Materials, supplies and fossil fuel inventory
|
1,120
|
|
|
1,073
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Deferred clause and franchise expenses
|
126
|
|
|
75
|
|
||
Other
|
137
|
|
|
113
|
|
||
Derivatives
|
461
|
|
|
517
|
|
||
Deferred income taxes
|
11
|
|
|
397
|
|
||
Assets held for sale
|
—
|
|
|
335
|
|
||
Other
|
349
|
|
|
342
|
|
||
Total current assets
|
4,735
|
|
|
5,237
|
|
||
OTHER ASSETS
|
|
|
|
|
|
||
Special use funds
|
4,421
|
|
|
4,190
|
|
||
Other investments
|
1,045
|
|
|
976
|
|
||
Prepaid benefit costs
|
1,055
|
|
|
1,031
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Securitized storm-recovery costs ($254 and $274 related to a VIE, respectively)
|
419
|
|
|
461
|
|
||
Other
|
723
|
|
|
582
|
|
||
Derivatives
|
845
|
|
|
920
|
|
||
Other
|
1,514
|
|
|
1,629
|
|
||
Total other assets
|
10,022
|
|
|
9,789
|
|
||
TOTAL ASSETS
|
$
|
65,217
|
|
|
$
|
64,439
|
|
CAPITALIZATION
|
|
|
|
|
|
||
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 425 and 424, respectively)
|
$
|
4
|
|
|
$
|
4
|
|
Additional paid-in capital
|
5,590
|
|
|
5,536
|
|
||
Retained earnings
|
11,109
|
|
|
10,783
|
|
||
Accumulated other comprehensive loss
|
(102
|
)
|
|
(255
|
)
|
||
Total common shareholders' equity
|
16,601
|
|
|
16,068
|
|
||
Long-term debt ($1,130 and $1,369 related to VIEs, respectively)
|
23,514
|
|
|
23,177
|
|
||
Total capitalization
|
40,115
|
|
|
39,245
|
|
||
CURRENT LIABILITIES
|
|
|
|
|
|
||
Commercial paper
|
666
|
|
|
1,211
|
|
||
Short-term debt
|
375
|
|
|
200
|
|
||
Current maturities of long-term debt
|
3,677
|
|
|
2,771
|
|
||
Accounts payable
|
1,279
|
|
|
1,281
|
|
||
Customer deposits
|
501
|
|
|
508
|
|
||
Accrued interest and taxes
|
619
|
|
|
414
|
|
||
Derivatives
|
579
|
|
|
430
|
|
||
Accrued construction-related expenditures
|
428
|
|
|
427
|
|
||
Liabilities associated with assets held for sale
|
—
|
|
|
733
|
|
||
Other
|
743
|
|
|
904
|
|
||
Total current liabilities
|
8,867
|
|
|
8,879
|
|
||
OTHER LIABILITIES AND DEFERRED CREDITS
|
|
|
|
|
|
||
Asset retirement obligations
|
1,774
|
|
|
1,715
|
|
||
Deferred income taxes
|
6,861
|
|
|
6,703
|
|
||
Regulatory liabilities:
|
|
|
|
|
|
||
Accrued asset removal costs
|
1,756
|
|
|
1,950
|
|
||
Asset retirement obligation regulatory expense difference
|
1,914
|
|
|
1,813
|
|
||
Other
|
372
|
|
|
309
|
|
||
Derivatives
|
362
|
|
|
587
|
|
||
Deferral related to differential membership interests - VIEs
|
1,865
|
|
|
1,784
|
|
||
Other
|
1,331
|
|
|
1,454
|
|
||
Total other liabilities and deferred credits
|
16,235
|
|
|
16,315
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
TOTAL CAPITALIZATION AND LIABILITIES
|
$
|
65,217
|
|
|
$
|
64,439
|
|
|
Six Months Ended June 30,
|
||||||
|
2013
|
|
2012
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
883
|
|
|
$
|
1,068
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
918
|
|
|
655
|
|
||
Nuclear fuel and other amortization
|
177
|
|
|
149
|
|
||
Impairment charge
|
300
|
|
|
—
|
|
||
Unrealized losses (gains) on marked to market energy contracts
|
68
|
|
|
(270
|
)
|
||
Deferred income taxes
|
535
|
|
|
373
|
|
||
Cost recovery clauses and franchise fees
|
(157
|
)
|
|
73
|
|
||
Benefits associated with differential membership interests - net
|
(82
|
)
|
|
(63
|
)
|
||
Allowance for equity funds used during construction
|
(38
|
)
|
|
(31
|
)
|
||
Gains on disposal of assets - net
|
(21
|
)
|
|
(67
|
)
|
||
Net gain from discontinued operations, net of income taxes
|
(188
|
)
|
|
—
|
|
||
Other - net
|
42
|
|
|
187
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Customer and other receivables
|
(276
|
)
|
|
(145
|
)
|
||
Materials, supplies and fossil fuel inventory
|
(47
|
)
|
|
(6
|
)
|
||
Other current assets
|
(50
|
)
|
|
(86
|
)
|
||
Other assets
|
(52
|
)
|
|
(5
|
)
|
||
Accounts payable
|
224
|
|
|
(12
|
)
|
||
Margin cash collateral
|
33
|
|
|
113
|
|
||
Income taxes
|
(132
|
)
|
|
(3
|
)
|
||
Interest and other taxes
|
201
|
|
|
192
|
|
||
Other current liabilities
|
(89
|
)
|
|
(114
|
)
|
||
Other liabilities
|
1
|
|
|
(80
|
)
|
||
Net cash provided by operating activities
|
2,250
|
|
|
1,928
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||
Capital expenditures of FPL
|
(1,465
|
)
|
|
(2,146
|
)
|
||
Independent power and other investments of NEER
|
(1,510
|
)
|
|
(1,456
|
)
|
||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
170
|
|
|
3
|
|
||
Nuclear fuel purchases
|
(86
|
)
|
|
(157
|
)
|
||
Other capital expenditures
|
(93
|
)
|
|
(271
|
)
|
||
Change in loan proceeds restricted for construction
|
207
|
|
|
95
|
|
||
Proceeds from sale or maturity of securities in special use funds
|
1,782
|
|
|
2,937
|
|
||
Purchases of securities in special use funds
|
(1,831
|
)
|
|
(3,012
|
)
|
||
Proceeds from sale or maturity of other securities
|
125
|
|
|
174
|
|
||
Purchases of other securities
|
(116
|
)
|
|
(203
|
)
|
||
Other - net
|
32
|
|
|
15
|
|
||
Net cash used in investing activities
|
(2,785
|
)
|
|
(4,021
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||
Issuances of long-term debt
|
2,862
|
|
|
2,330
|
|
||
Retirements of long-term debt
|
(1,425
|
)
|
|
(646
|
)
|
||
Proceeds from sale of differential membership interests
|
201
|
|
|
337
|
|
||
Payments to differential membership investors
|
(37
|
)
|
|
(2
|
)
|
||
Net change in short-term debt
|
(370
|
)
|
|
170
|
|
||
Issuances of common stock - net
|
9
|
|
|
372
|
|
||
Repurchases of common stock
|
—
|
|
|
(19
|
)
|
||
Dividends on common stock
|
(557
|
)
|
|
(500
|
)
|
||
Other - net
|
(66
|
)
|
|
(31
|
)
|
||
Net cash provided by financing activities
|
617
|
|
|
2,011
|
|
||
Net increase (decrease) in cash and cash equivalents
|
82
|
|
|
(82
|
)
|
||
Cash and cash equivalents at beginning of period
|
329
|
|
|
377
|
|
||
Cash and cash equivalents at end of period
|
$
|
411
|
|
|
$
|
295
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
||
Accrued property additions
|
$
|
726
|
|
|
$
|
880
|
|
Sale of hydropower generation plants through assumption of debt by buyer
|
$
|
700
|
|
|
$
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
OPERATING REVENUES
|
$
|
2,696
|
|
|
$
|
2,580
|
|
|
$
|
4,885
|
|
|
$
|
4,804
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel, purchased power and interchange
|
1,018
|
|
|
1,086
|
|
|
1,838
|
|
|
2,021
|
|
||||
Other operations and maintenance
|
426
|
|
|
442
|
|
|
811
|
|
|
879
|
|
||||
Depreciation and amortization
|
248
|
|
|
125
|
|
|
429
|
|
|
243
|
|
||||
Taxes other than income taxes and other
|
280
|
|
|
265
|
|
|
540
|
|
|
518
|
|
||||
Total operating expenses
|
1,972
|
|
|
1,918
|
|
|
3,618
|
|
|
3,661
|
|
||||
OPERATING INCOME
|
724
|
|
|
662
|
|
|
1,267
|
|
|
1,143
|
|
||||
OTHER INCOME (DEDUCTIONS)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(104
|
)
|
|
(107
|
)
|
|
(205
|
)
|
|
(210
|
)
|
||||
Allowance for equity funds used during construction
|
12
|
|
|
12
|
|
|
30
|
|
|
22
|
|
||||
Other - net
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total other deductions - net
|
(92
|
)
|
|
(94
|
)
|
|
(175
|
)
|
|
(188
|
)
|
||||
INCOME BEFORE INCOME TAXES
|
632
|
|
|
568
|
|
|
1,092
|
|
|
955
|
|
||||
INCOME TAXES
|
241
|
|
|
215
|
|
|
413
|
|
|
363
|
|
||||
NET INCOME
(a)
|
$
|
391
|
|
|
$
|
353
|
|
|
$
|
679
|
|
|
$
|
592
|
|
(a)
|
FPL's comprehensive income is the same as reported net income.
|
|
June 30,
2013 |
|
December 31,
2012 |
||||
ELECTRIC UTILITY PLANT
|
|
|
|
||||
Plant in service and other property
|
$
|
36,219
|
|
|
$
|
34,474
|
|
Nuclear fuel
|
1,121
|
|
|
1,190
|
|
||
Construction work in progress
|
1,511
|
|
|
2,585
|
|
||
Less accumulated depreciation and amortization
|
(10,651
|
)
|
|
(10,698
|
)
|
||
Total electric utility plant - net
|
28,200
|
|
|
27,551
|
|
||
CURRENT ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
30
|
|
|
40
|
|
||
Customer receivables, net of allowances of $6 and $7, respectively
|
860
|
|
|
760
|
|
||
Other receivables
|
424
|
|
|
447
|
|
||
Materials, supplies and fossil fuel inventory
|
752
|
|
|
727
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Deferred clause and franchise expenses
|
126
|
|
|
75
|
|
||
Other
|
129
|
|
|
106
|
|
||
Other
|
216
|
|
|
131
|
|
||
Total current assets
|
2,537
|
|
|
2,286
|
|
||
OTHER ASSETS
|
|
|
|
|
|
||
Special use funds
|
3,062
|
|
|
2,918
|
|
||
Prepaid benefit costs
|
1,148
|
|
|
1,135
|
|
||
Regulatory assets:
|
|
|
|
|
|
||
Securitized storm-recovery costs ($254 and $274 related to a VIE, respectively)
|
419
|
|
|
461
|
|
||
Other
|
481
|
|
|
351
|
|
||
Other
|
143
|
|
|
151
|
|
||
Total other assets
|
5,253
|
|
|
5,016
|
|
||
TOTAL ASSETS
|
$
|
35,990
|
|
|
$
|
34,853
|
|
CAPITALIZATION
|
|
|
|
|
|
||
Common stock (no par value, 1,000 shares authorized, issued and outstanding)
|
$
|
1,373
|
|
|
$
|
1,373
|
|
Additional paid-in capital
|
5,904
|
|
|
5,903
|
|
||
Retained earnings
|
5,593
|
|
|
5,254
|
|
||
Total common shareholder's equity
|
12,870
|
|
|
12,530
|
|
||
Long-term debt ($357 and $386 related to a VIE, respectively)
|
8,499
|
|
|
8,329
|
|
||
Total capitalization
|
21,369
|
|
|
20,859
|
|
||
CURRENT LIABILITIES
|
|
|
|
|
|
||
Commercial paper
|
346
|
|
|
105
|
|
||
Current maturities of long-term debt
|
354
|
|
|
453
|
|
||
Accounts payable
|
720
|
|
|
612
|
|
||
Customer deposits
|
497
|
|
|
503
|
|
||
Accrued interest and taxes
|
412
|
|
|
223
|
|
||
Accrued construction-related expenditures
|
181
|
|
|
235
|
|
||
Other
|
331
|
|
|
495
|
|
||
Total current liabilities
|
2,841
|
|
|
2,626
|
|
||
OTHER LIABILITIES AND DEFERRED CREDITS
|
|
|
|
|
|
||
Asset retirement obligations
|
1,238
|
|
|
1,206
|
|
||
Deferred income taxes
|
6,038
|
|
|
5,584
|
|
||
Regulatory liabilities:
|
|
|
|
|
|
||
Accrued asset removal costs
|
1,756
|
|
|
1,950
|
|
||
Asset retirement obligation regulatory expense difference
|
1,914
|
|
|
1,813
|
|
||
Other
|
372
|
|
|
309
|
|
||
Other
|
462
|
|
|
506
|
|
||
Total other liabilities and deferred credits
|
11,780
|
|
|
11,368
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
TOTAL CAPITALIZATION AND LIABILITIES
|
$
|
35,990
|
|
|
$
|
34,853
|
|
|
Six Months Ended June 30,
|
||||||
|
2013
|
|
2012
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
679
|
|
|
$
|
592
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
429
|
|
|
243
|
|
||
Nuclear fuel and other amortization
|
83
|
|
|
57
|
|
||
Deferred income taxes
|
353
|
|
|
446
|
|
||
Cost recovery clauses and franchise fees
|
(157
|
)
|
|
73
|
|
||
Allowance for equity funds used during construction
|
(30
|
)
|
|
(22
|
)
|
||
Other - net
|
67
|
|
|
20
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Customer and other receivables
|
(118
|
)
|
|
(116
|
)
|
||
Materials, supplies and fossil fuel inventory
|
(26
|
)
|
|
(1
|
)
|
||
Other current assets
|
(36
|
)
|
|
(60
|
)
|
||
Other assets
|
(12
|
)
|
|
(22
|
)
|
||
Accounts payable
|
159
|
|
|
51
|
|
||
Income taxes
|
61
|
|
|
(75
|
)
|
||
Interest and other taxes
|
191
|
|
|
173
|
|
||
Other current liabilities
|
(83
|
)
|
|
(76
|
)
|
||
Other liabilities
|
(14
|
)
|
|
(16
|
)
|
||
Net cash provided by operating activities
|
1,546
|
|
|
1,267
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||
Capital expenditures
|
(1,465
|
)
|
|
(2,146
|
)
|
||
Nuclear fuel purchases
|
(41
|
)
|
|
(117
|
)
|
||
Proceeds from sale or maturity of securities in special use funds
|
1,354
|
|
|
2,357
|
|
||
Purchases of securities in special use funds
|
(1,388
|
)
|
|
(2,416
|
)
|
||
Other - net
|
10
|
|
|
27
|
|
||
Net cash used in investing activities
|
(1,530
|
)
|
|
(2,295
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||
Issuances of long-term debt
|
498
|
|
|
594
|
|
||
Retirements of long-term debt
|
(427
|
)
|
|
(25
|
)
|
||
Net change in short-term debt
|
241
|
|
|
208
|
|
||
Capital contribution from NEE
|
—
|
|
|
240
|
|
||
Dividends to NEE
|
(340
|
)
|
|
—
|
|
||
Other - net
|
2
|
|
|
1
|
|
||
Net cash provided by (used in) financing activities
|
(26
|
)
|
|
1,018
|
|
||
Net decrease in cash and cash equivalents
|
(10
|
)
|
|
(10
|
)
|
||
Cash and cash equivalents at beginning of period
|
40
|
|
|
36
|
|
||
Cash and cash equivalents at end of period
|
$
|
30
|
|
|
$
|
26
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
||
Accrued property additions
|
$
|
365
|
|
|
$
|
430
|
|
|
|
Pension Benefits
|
|
Other Benefits
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
|
|
(millions)
|
||||||||||||||||||||||||||||||
Service cost
|
|
$
|
18
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
36
|
|
|
$
|
33
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Interest cost
|
|
24
|
|
|
25
|
|
|
4
|
|
|
5
|
|
|
48
|
|
|
49
|
|
|
8
|
|
|
9
|
|
||||||||
Expected return on plan assets
|
|
(59
|
)
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
(119
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Amortization of transition obligation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Amortization of prior service cost (benefit)
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
2
|
|
|
(2
|
)
|
|
1
|
|
||||||||
Amortization of losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||||
Special termination benefits
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net periodic benefit (income) cost at NEE
|
|
$
|
(3
|
)
|
|
$
|
(18
|
)
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
(18
|
)
|
|
$
|
(35
|
)
|
|
$
|
9
|
|
|
$
|
13
|
|
Net periodic benefit (income) cost at FPL
|
|
$
|
(2
|
)
|
|
$
|
(11
|
)
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
(12
|
)
|
|
$
|
(23
|
)
|
|
$
|
6
|
|
|
$
|
10
|
|
|
|
NEE
|
|
FPL
|
|
||||||||||||
|
|
June 30, 2013
|
|
December 31, 2012
|
|
June 30, 2013
|
|
December 31, 2012
|
|
||||||||
|
|
(millions)
|
|
||||||||||||||
Current derivative assets
(a)
|
|
$
|
461
|
|
|
$
|
517
|
|
|
$
|
2
|
|
(b)
|
$
|
4
|
|
(b)
|
Noncurrent derivative assets
(c)
|
|
845
|
|
|
920
|
|
|
—
|
|
|
1
|
|
(d)
|
||||
Current derivative liabilities
(e)
|
|
(579
|
)
|
|
(430
|
)
|
|
(30
|
)
|
(f)
|
(20
|
)
|
(f)
|
||||
Noncurrent derivative liabilities
|
|
(362
|
)
|
|
(587
|
)
|
|
(18
|
)
|
(g)
|
—
|
|
|
||||
Total mark-to-market derivative instrument assets (liabilities)
|
|
$
|
365
|
|
|
$
|
420
|
|
|
$
|
(46
|
)
|
|
$
|
(15
|
)
|
|
(a)
|
At
June 30, 2013
and
December 31, 2012
, NEE's balances reflect the netting of approximately
$60 million
and
$43 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
June 30, 2013
and
December 31, 2012
, NEE's balances reflect the netting of approximately
$126 million
and
$159 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
June 30, 2013
and
December 31, 2012
, NEE's balances reflect the netting of approximately
$35 million
and
$79 million
(
none
at FPL), respectively, in margin cash collateral provided to counterparties.
|
(f)
|
Included in current other liabilities on FPL's condensed consolidated balance sheets.
|
(g)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
||||||||
|
|
(millions)
|
||||||||||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Current derivative assets
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
—
|
|
Current derivative liabilities
|
|
—
|
|
|
61
|
|
|
—
|
|
|
104
|
|
||||
Noncurrent derivative assets
|
|
43
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||
Noncurrent derivative liabilities
|
|
—
|
|
|
72
|
|
|
—
|
|
|
283
|
|
||||
Foreign currency swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current derivative liabilities
|
|
—
|
|
|
22
|
|
|
—
|
|
|
5
|
|
||||
Noncurrent derivative liabilities
|
|
—
|
|
|
21
|
|
|
—
|
|
|
28
|
|
||||
Total
|
|
$
|
70
|
|
|
$
|
176
|
|
|
$
|
76
|
|
|
$
|
420
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swaps
|
|
Total
|
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swap
|
|
Total
|
||||||||||||||
|
(millions)
|
||||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
65
|
|
|
$
|
(4
|
)
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
(66
|
)
|
|
$
|
—
|
|
|
$
|
(66
|
)
|
Gains (losses) reclassified from AOCI to net income
(a)
|
$
|
(15
|
)
|
|
$
|
(12
|
)
|
(b)
|
$
|
(27
|
)
|
|
$
|
3
|
|
|
$
|
(14
|
)
|
|
$
|
4
|
|
(b)
|
$
|
(7
|
)
|
(a)
|
Included in operating revenues for commodity contracts and interest expense for interest rate swaps.
|
(b)
|
Loss of approximately
$1 million
is included in interest expense and the balance is included in other - net.
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swaps
|
|
Total
|
|
Commodity
Contracts
|
|
Interest
Rate
Swaps
|
|
Foreign
Currency
Swap
|
|
Total
|
||||||||||||||
|
(millions)
|
||||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
165
|
|
|
$
|
(12
|
)
|
|
$
|
153
|
|
|
$
|
—
|
|
|
$
|
(65
|
)
|
|
$
|
(10
|
)
|
|
$
|
(75
|
)
|
Gains (losses) reclassified from AOCI to net income
(a)
|
$
|
(30
|
)
|
|
$
|
(31
|
)
|
(b)
|
$
|
(61
|
)
|
|
$
|
4
|
|
|
$
|
(30
|
)
|
|
$
|
(6
|
)
|
(b)
|
$
|
(32
|
)
|
(a)
|
Included in operating revenues for commodity contracts and interest expense for interest rate swaps.
|
(b)
|
Loss of approximately
$2 million
is included in interest expense and the balance is included in other - net.
|
|
June 30, 2013
|
|
December 31, 2012
|
|
||||||||||||||||||||||||||||
|
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
|
$
|
877
|
|
|
$
|
383
|
|
|
$
|
3
|
|
(a)
|
$
|
1
|
|
(a)
|
$
|
851
|
|
|
$
|
321
|
|
|
$
|
4
|
|
(a)
|
$
|
—
|
|
|
Current derivative liabilities
|
1,241
|
|
|
1,598
|
|
|
14
|
|
(b)
|
44
|
|
(b)
|
1,441
|
|
|
1,838
|
|
|
12
|
|
(b)
|
32
|
|
(b)
|
||||||||
Noncurrent derivative assets
|
1,650
|
|
|
722
|
|
|
—
|
|
|
—
|
|
|
1,748
|
|
|
715
|
|
|
1
|
|
(c)
|
—
|
|
|
||||||||
Noncurrent derivative liabilities
|
184
|
|
|
453
|
|
|
—
|
|
|
18
|
|
(d)
|
192
|
|
|
438
|
|
|
—
|
|
|
—
|
|
|
||||||||
Foreign currency swap:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current derivative liabilities
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
||||||||
Noncurrent derivative liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current derivative liabilities
|
—
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Total
|
$
|
3,952
|
|
|
$
|
3,330
|
|
|
$
|
17
|
|
|
$
|
63
|
|
|
$
|
4,232
|
|
|
$
|
3,345
|
|
|
$
|
17
|
|
|
$
|
32
|
|
|
(a)
|
Included in current other assets on FPL's condensed consolidated balance sheets.
|
(b)
|
Included in current other liabilities on FPL's condensed consolidated balance sheets.
|
(c)
|
Included in noncurrent other assets on FPL's condensed consolidated balance sheets.
|
(d)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions)
|
||||||||||||||
Commodity contracts:
(a)
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
15
|
|
|
$
|
130
|
|
|
$
|
(27
|
)
|
|
$
|
320
|
|
Fuel, purchased power and interchange
|
8
|
|
|
51
|
|
|
11
|
|
|
40
|
|
||||
Foreign currency swap - other - net
|
(20
|
)
|
|
15
|
|
|
(52
|
)
|
|
(22
|
)
|
||||
Interest rate contracts - interest expense
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Total
|
$
|
14
|
|
|
$
|
196
|
|
|
$
|
(57
|
)
|
|
$
|
338
|
|
(a)
|
For the
three months ended June 30, 2013 and 2012
, FPL recorded approximately
$149 million
of
losses
and
$76 million
of gains, respectively, related to commodity contracts as regulatory assets and regulatory liabilities, respectively, on its condensed consolidated balance sheets. For the
six months ended June 30, 2013 and 2012
, FPL recorded approximately
$5 million
and
$176 million
of losses, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets.
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||||||
Commodity Type
|
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||||||
|
|
(millions)
|
||||||||||||||||||
Power
|
|
(106
|
)
|
|
mwh
(a)
|
|
—
|
|
|
|
|
(77
|
)
|
|
mwh
(a)
|
|
—
|
|
|
|
Natural gas
|
|
1,111
|
|
|
mmbtu
(b)
|
|
767
|
|
|
mmbtu
(b)
|
|
1,293
|
|
|
mmbtu
(b)
|
|
894
|
|
|
mmbtu
(b)
|
Oil
|
|
(8
|
)
|
|
barrels
|
|
—
|
|
|
|
|
(8
|
)
|
|
barrels
|
|
—
|
|
|
|
(a)
|
Megawatt-hours
|
(b)
|
One million British thermal units
|
|
June 30, 2013
|
|
||||||||||||||||||
|
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
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
FPL - equity securities
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
Special use funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
976
|
|
|
$
|
1,396
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,372
|
|
|
U.S. Government and municipal bonds
|
$
|
500
|
|
|
$
|
150
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
650
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
559
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
559
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
519
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
519
|
|
|
Other debt securities
|
$
|
18
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
FPL:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
207
|
|
|
$
|
1,258
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,465
|
|
|
U.S. Government and municipal bonds
|
$
|
430
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
557
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
387
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
387
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
440
|
|
|
Other debt securities
|
$
|
18
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
59
|
|
|
U.S. Government and municipal bonds
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
Other
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,168
|
|
|
$
|
2,022
|
|
|
$
|
762
|
|
|
$
|
(2,716
|
)
|
|
$
|
1,236
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
(15
|
)
|
|
$
|
2
|
|
(c)
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,188
|
|
|
$
|
1,681
|
|
|
$
|
287
|
|
|
$
|
(2,565
|
)
|
|
$
|
591
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
224
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
126
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
3
|
|
|
$
|
(15
|
)
|
|
$
|
48
|
|
(c)
|
(a)
|
Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts. NEE also has contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the condensed consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
|
(b)
|
At NEE, approximately
$1,382 million
(
$1,244 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, 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
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
FPL - equity securities
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
Special use funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
914
|
|
|
$
|
1,240
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,154
|
|
|
U.S. Government and municipal bonds
|
$
|
451
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
594
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
572
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
572
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
560
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
560
|
|
|
Other debt securities
|
$
|
15
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
FPL:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
217
|
|
|
$
|
1,118
|
|
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,335
|
|
|
U.S. Government and municipal bonds
|
$
|
390
|
|
|
$
|
119
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
509
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
475
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
475
|
|
|
Other debt securities
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
U.S. Government and municipal bonds
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
Corporate debt securities
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
Other
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,187
|
|
|
$
|
2,251
|
|
|
$
|
794
|
|
|
$
|
(2,871
|
)
|
|
$
|
1,361
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
(12
|
)
|
|
$
|
5
|
|
(c)
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NEE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity contracts
|
$
|
1,240
|
|
|
$
|
1,844
|
|
|
$
|
228
|
|
|
$
|
(2,748
|
)
|
|
$
|
564
|
|
(c)
|
Interest rate swaps
|
$
|
—
|
|
|
$
|
387
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
387
|
|
(c)
|
Foreign currency swaps
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66
|
|
(c)
|
FPL - commodity contracts
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
1
|
|
|
$
|
(12
|
)
|
|
$
|
20
|
|
(c)
|
(a)
|
Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts. NEE also has contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the condensed consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
|
(b)
|
At NEE, approximately
$1,214 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.
|
Transaction Type
|
|
Fair Value at
June 30, 2013
|
|
Valuation
Technique(s)
|
|
Significant
Unobservable Inputs
|
|
Range
|
||||
|
|
Assets
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
|
|
||
Forward contracts - power
|
|
$380
|
|
$85
|
|
Discounted cash flow
|
|
Forward price (per mwh)
|
|
$9
|
—
|
$196
|
Forward contracts - gas
|
|
$25
|
|
$16
|
|
Discounted cash flow
|
|
Forward price (per mmbtu)
|
|
$3
|
—
|
$7
|
Forward contracts - other commodity related
|
|
$11
|
|
$7
|
|
Discounted cash flow
|
|
Forward price (various)
|
|
$1
|
—
|
$245
|
Options - power
|
|
$105
|
|
$130
|
|
Option models
|
|
Implied correlations
|
|
12%
|
—
|
98%
|
|
|
|
|
|
|
|
|
Implied volatilities
|
|
1%
|
—
|
156%
|
Options - gas
|
|
$26
|
|
$24
|
|
Option models
|
|
Implied correlations
|
|
12%
|
—
|
98%
|
|
|
|
|
|
|
|
|
Implied volatilities
|
|
1%
|
—
|
33%
|
Full requirements and unit contingent contracts
|
|
$215
|
|
$25
|
|
Discounted cash flow
|
|
Forward price (per mwh)
|
|
$(4)
|
—
|
$152
|
|
|
|
|
|
|
|
|
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/gas
|
|
Increase (decrease)
|
|
|
Sell power/gas
|
|
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 June 30,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||
|
(millions)
|
||||||||||||||
Fair value of net derivatives based on significant unobservable inputs at March 31
|
$
|
522
|
|
|
$
|
2
|
|
|
$
|
589
|
|
|
$
|
7
|
|
Realized and unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
(a)
|
13
|
|
|
—
|
|
|
53
|
|
|
—
|
|
||||
Included in regulatory assets and liabilities
|
(3
|
)
|
|
(3
|
)
|
|
2
|
|
|
2
|
|
||||
Purchases
|
21
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||
Settlements
|
(23
|
)
|
|
—
|
|
|
(58
|
)
|
|
(2
|
)
|
||||
Issuances
|
(30
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
||||
Transfers in
(b)
|
(114
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transfers out
(b)
|
(2
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||
Fair value of net derivatives based on significant unobservable inputs at June 30
|
$
|
384
|
|
|
$
|
(1
|
)
|
|
$
|
575
|
|
|
$
|
7
|
|
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)
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
—
|
|
(a)
|
For the
three months ended June 30, 2013
, realized and unrealized gains of approximately
$2 million
are reflected in the condensed consolidated statements of income in operating revenues and
$11 million
in interest expense. For the
three months ended June 30, 2012
, realized and unrealized gains of approximately
$53 million
are reflected in the condensed consolidated statements of income in operating revenues.
|
(b)
|
Transfers into Level 3 were a result of decreased observability of market data and, in 2013, the use of a significant credit valuation adjustment. 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 June 30, 2013
, unrealized gains of less than
$1 million
are reflected in the condensed consolidated statements of income in operating revenues and approximately
$11 million
in interest expense. For the
three months ended June 30, 2012
, unrealized gains of approximately
$76 million
are reflected in the condensed consolidated statements of income in operating revenues.
|
|
Six Months Ended June 30,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
||||||||
|
(millions)
|
||||||||||||||
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year
|
$
|
566
|
|
|
$
|
2
|
|
|
$
|
486
|
|
|
$
|
4
|
|
Realized and unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Included in earnings
(a)
|
10
|
|
|
—
|
|
|
284
|
|
|
—
|
|
||||
Included in regulatory assets and liabilities
|
(2
|
)
|
|
(2
|
)
|
|
6
|
|
|
6
|
|
||||
Purchases
|
70
|
|
|
—
|
|
|
181
|
|
|
—
|
|
||||
Settlements
|
(56
|
)
|
|
(1
|
)
|
|
(182
|
)
|
|
(3
|
)
|
||||
Issuances
|
(94
|
)
|
|
—
|
|
|
(200
|
)
|
|
—
|
|
||||
Transfers in
(b)
|
(114
|
)
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Transfers out
(b)
|
4
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Fair value of net derivatives based on significant unobservable inputs at June 30
|
$
|
384
|
|
|
$
|
(1
|
)
|
|
$
|
575
|
|
|
$
|
7
|
|
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)
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
190
|
|
|
$
|
—
|
|
(a)
|
For the
six months ended June 30, 2013
, realized and unrealized gains (losses) of approximately
$1 million
are reflected in the condensed consolidated statements of income in operating revenues,
$11 million
in interest expense and the balance is reflected in fuel, purchased power and interchange. For the
six months ended June 30, 2012
, realized and unrealized gains of approximately
$281 million
are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
(b)
|
Transfers into Level 3 were a result of decreased observability of market data and, in 2013, the use of a significant credit valuation adjustment. 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
six months ended June 30, 2013
, unrealized gains (losses) of approximately
$32 million
are reflected in the condensed consolidated statements of income in operating revenues,
$11 million
in interest expense and the balance is reflected in fuel, purchased power and interchange. For the
six months ended June 30, 2012
, unrealized gains of approximately
$189 million
are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.
|
|
June 30, 2013
|
|
December 31, 2012
|
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
||||||||
|
(millions)
|
|
||||||||||||||
NEE:
|
|
|
||||||||||||||
Special use funds
|
$
|
4,421
|
|
(a)
|
$
|
4,421
|
|
(a)
|
$
|
4,190
|
|
(a)
|
$
|
4,190
|
|
(a)
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
Notes receivable
|
$
|
500
|
|
|
$
|
599
|
|
(b)
|
$
|
500
|
|
|
$
|
665
|
|
(b)
|
Debt securities
|
$
|
122
|
|
(c)
|
$
|
122
|
|
(d)
|
$
|
111
|
|
(c)
|
$
|
111
|
|
(d)
|
Equity securities
|
$
|
61
|
|
|
$
|
61
|
|
(e)
|
$
|
61
|
|
|
$
|
79
|
|
(e)
|
Long-term debt, including current maturities
|
$
|
27,183
|
|
|
$
|
28,600
|
|
(f)
|
$
|
26,647
|
|
(g)
|
$
|
28,874
|
|
(f)
|
Interest rate swaps - net unrealized losses
|
$
|
(154
|
)
|
|
$
|
(154
|
)
|
(d)
|
$
|
(311
|
)
|
|
$
|
(311
|
)
|
(d)
|
Foreign currency swaps - net unrealized losses
|
$
|
(126
|
)
|
|
$
|
(126
|
)
|
(d)
|
$
|
(66
|
)
|
|
$
|
(66
|
)
|
(d)
|
FPL:
|
|
|
|
|
|
|
|
|
||||||||
Special use funds
|
$
|
3,062
|
|
(a)
|
$
|
3,062
|
|
(a)
|
$
|
2,918
|
|
(a)
|
$
|
2,918
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
8,853
|
|
|
$
|
9,725
|
|
(f)
|
$
|
8,782
|
|
|
$
|
10,421
|
|
(f)
|
(a)
|
At
June 30, 2013
, includes
$234 million
of investments accounted for under the equity method and
$36 million
of loans not measured at fair value on a recurring basis (
$146 million
and
$26 million
, respectively, for FPL). At
December 31, 2012
, includes
$229 million
of investments accounted for under the equity method and
$40 million
of loans not measured at fair value on a recurring basis (
$138 million
and
$32 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
$1,765 million
and
$1,461 million
, respectively, at
June 30, 2013
and
$1,679 million
and
$1,500 million
, respectively, at
December 31, 2012
(
$1,408 million
and
$785 million
, respectively, at
June 30, 2013
and
$1,339 million
and
$839 million
, respectively, at
December 31, 2012
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 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 ratings and market-related information. As of
June 30, 2013
and December 31, 2012, NEE had no notes receivable reported in non-accrual status.
|
(c)
|
Classified as trading securities.
|
(d)
|
See Note 3.
|
(e)
|
Primarily based on quoted prices in active markets (Level 1). The remainder is modeled internally based on recent market information including, among other things, private offerings of the securities (Level 3).
|
(f)
|
As of
June 30, 2013
and
December 31, 2012
,
$18,248 million
and
$18,962 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).
|
(g)
|
Also includes long-term debt reflected in liabilities associated with assets held for sale on the condensed consolidated balance sheets, for which the carrying amount approximates fair value.
|
|
NEE
|
|
FPL
|
|
NEE
|
|
FPL
|
|
||||||||||||||||||||||||
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||||||||||
|
(millions)
|
|
||||||||||||||||||||||||||||||
Realized gains
|
$
|
21
|
|
|
$
|
88
|
|
|
$
|
8
|
|
|
$
|
30
|
|
|
$
|
63
|
|
|
$
|
131
|
|
|
$
|
31
|
|
|
$
|
61
|
|
|
Realized losses
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
43
|
|
|
$
|
32
|
|
|
$
|
30
|
|
|
$
|
22
|
|
|
Proceeds from sale or maturity of securities
|
$
|
858
|
|
|
$
|
2,001
|
|
|
$
|
669
|
|
|
$
|
1,630
|
|
|
$
|
1,782
|
|
|
$
|
2,937
|
|
|
$
|
1,354
|
|
|
$
|
2,357
|
|
|
|
NEE
|
|
FPL
|
||||||||||||
|
June 30, 2013
|
|
December 31, 2012
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||
|
(millions)
|
||||||||||||||
Equity securities
|
$
|
912
|
|
|
$
|
680
|
|
|
$
|
680
|
|
|
$
|
521
|
|
Debt securities
|
$
|
47
|
|
|
$
|
92
|
|
|
$
|
42
|
|
|
$
|
77
|
|
|
NEE
|
|
FPL
|
||||||||||||
|
June 30, 2013
|
|
December 31, 2012
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||
|
(millions)
|
||||||||||||||
Unrealized losses
(a)
|
$
|
33
|
|
|
$
|
3
|
|
|
$
|
24
|
|
|
$
|
2
|
|
Fair value
|
$
|
978
|
|
|
$
|
277
|
|
|
$
|
746
|
|
|
$
|
223
|
|
(a)
|
Unrealized losses on available for sale debt securities for securities in an unrealized loss position for greater than twelve months at
June 30, 2013
and
December 31, 2012
were not material to NEE or FPL.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions, except per share amounts)
|
||||||||||||||
Numerator - income from continuing operations
|
$
|
610
|
|
|
$
|
607
|
|
|
$
|
695
|
|
|
$
|
1,068
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of common shares outstanding - basic
|
421.8
|
|
|
415.0
|
|
|
421.4
|
|
|
413.7
|
|
||||
Performance share awards, equity units, options and restricted stock
(a)
|
3.0
|
|
|
2.2
|
|
|
2.9
|
|
|
2.3
|
|
||||
Weighted-average number of common shares outstanding - assuming dilution
|
424.8
|
|
|
417.2
|
|
|
424.3
|
|
|
416.0
|
|
||||
Earnings per share of common stock from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
1.45
|
|
|
$
|
1.46
|
|
|
$
|
1.64
|
|
|
$
|
2.58
|
|
Assuming dilution
|
$
|
1.44
|
|
|
$
|
1.45
|
|
|
$
|
1.64
|
|
|
$
|
2.57
|
|
(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, equity units and restricted stock are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method.
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||||
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Net Unrealized Gains (Losses) on Available for Sale Securities
|
|
Defined Benefit Pension and Other Benefits Plans
|
|
Net Unrealized Gains (Losses) on Foreign Currency Translation
|
|
Other Comprehensive Income (Loss) Related to Equity Method Investee
|
|
Total
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, March 31, 2013
|
$
|
(180
|
)
|
|
$
|
130
|
|
|
$
|
(67
|
)
|
|
$
|
3
|
|
|
$
|
(22
|
)
|
|
$
|
(136
|
)
|
Other comprehensive income (loss) before reclassifications
|
36
|
|
|
2
|
|
|
—
|
|
|
(23
|
)
|
|
5
|
|
|
20
|
|
||||||
Amounts reclassified from AOCI
|
18
|
|
(a)
|
(4
|
)
|
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Net other comprehensive income (loss)
|
54
|
|
|
(2
|
)
|
|
—
|
|
|
(23
|
)
|
|
5
|
|
|
34
|
|
||||||
Balances, June 30, 2013
|
$
|
(126
|
)
|
|
$
|
128
|
|
|
$
|
(67
|
)
|
|
$
|
(20
|
)
|
|
$
|
(17
|
)
|
|
$
|
(102
|
)
|
(a)
|
Reclassified to interest expense in NEE's condensed consolidated statements of income.
|
(b)
|
Reclassified to gains on disposal of assets - net in NEE's condensed consolidated statements of income.
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||||
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Net Unrealized Gains (Losses) on Available for Sale Securities
|
|
Defined Benefit Pension and Other Benefits Plans
|
|
Net Unrealized Gains (Losses) on Foreign Currency Translation
|
|
Other Comprehensive Income (Loss) Related to Equity Method Investee
|
|
Total
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, December 31, 2012
|
$
|
(266
|
)
|
|
$
|
96
|
|
|
$
|
(74
|
)
|
|
$
|
12
|
|
|
$
|
(23
|
)
|
|
$
|
(255
|
)
|
Other comprehensive income (loss) before reclassifications
|
101
|
|
|
42
|
|
|
6
|
|
|
(32
|
)
|
|
6
|
|
|
123
|
|
||||||
Amounts reclassified from AOCI
|
39
|
|
(a)
|
(10
|
)
|
(b)
|
1
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||||
Net other comprehensive income (loss)
|
140
|
|
|
32
|
|
|
7
|
|
|
(32
|
)
|
|
6
|
|
|
153
|
|
||||||
Balances, June 30, 2013
|
$
|
(126
|
)
|
|
$
|
128
|
|
|
$
|
(67
|
)
|
|
$
|
(20
|
)
|
|
$
|
(17
|
)
|
|
$
|
(102
|
)
|
(a)
|
Reclassified to interest expense in NEE's condensed consolidated statements of income.
|
(b)
|
Reclassified to gains on disposal of assets - net in NEE's condensed consolidated statements of income.
|
Date Issued
|
|
Company
|
|
Debt Issuances/Borrowings
|
|
Interest
Rate
|
|
Principal
Amount
|
|
Maturity
Date
|
|
|||
|
|
|
|
|
|
|
|
(millions)
|
|
|
|
|||
January - June 2013
|
|
NEECH and NEER subsidiary
|
|
Canadian revolving credit agreements
|
|
Variable
|
|
(a)
|
$
|
119
|
|
|
Various
|
|
January - June 2013
|
|
NEER subsidiaries
|
|
Euro-denominated senior secured limited-recourse loan
|
|
Variable
|
|
(a)(b)
|
$
|
35
|
|
|
2030
|
(c)
|
January - March 2013
|
|
Lone Star Transmission, LLC
|
|
Senior secured limited-recourse loan
|
|
Variable
|
|
(a)
|
$
|
77
|
|
|
2016
|
|
January 2013
|
|
NEECH
|
|
Junior subordinated debentures
|
|
5.00
|
%
|
|
$
|
450
|
|
|
2073
|
|
May 2013
|
|
NEER subsidiary
|
|
Senior secured limited-recourse term loan
|
|
Variable
|
|
(d)
|
$
|
1,150
|
|
|
2020
|
|
June 2013
|
|
FPL
|
|
First mortgage bonds
|
|
2.75
|
%
|
|
$
|
500
|
|
|
2023
|
|
June 2013
|
|
NEECH
|
|
Debentures
|
|
3.625
|
%
|
|
$
|
250
|
|
|
2023
|
|
June 2013
|
|
NEER subsidiary
|
|
Senior secured limited-recourse term loan
|
|
Variable
|
|
(a)(b)
|
$
|
254
|
|
|
2031
|
|
(a)
|
Variable rate is based on an underlying index plus a margin.
|
(b)
|
Interest rate swap agreements have been entered into with respect to these issuances. See Note 2.
|
(c)
|
See Note 10 - Commitments for discussion of a default on the senior secured limited-recourse loan.
|
(d)
|
Variable rate is based on the greater of an underlying index or a floor, plus a margin.
|
|
Remainder of 2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Total
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
FPL:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Generation:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New
(b)(c)
|
$
|
335
|
|
|
$
|
790
|
|
|
$
|
255
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
1,460
|
|
Existing
|
375
|
|
|
760
|
|
|
735
|
|
|
600
|
|
|
550
|
|
|
3,020
|
|
||||||
Transmission and distribution
|
440
|
|
|
1,170
|
|
|
1,085
|
|
|
1,055
|
|
|
795
|
|
|
4,545
|
|
||||||
Nuclear fuel
|
190
|
|
|
140
|
|
|
210
|
|
|
220
|
|
|
225
|
|
|
985
|
|
||||||
General and other
|
95
|
|
|
160
|
|
|
110
|
|
|
125
|
|
|
120
|
|
|
610
|
|
||||||
Total
(d)
|
$
|
1,435
|
|
|
$
|
3,020
|
|
|
$
|
2,395
|
|
|
$
|
2,080
|
|
|
$
|
1,690
|
|
|
$
|
10,620
|
|
NEER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wind
(e)
|
$
|
425
|
|
|
$
|
80
|
|
|
$
|
15
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
530
|
|
Solar
(f)
|
325
|
|
|
140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
465
|
|
||||||
Nuclear
(g)
|
160
|
|
|
290
|
|
|
245
|
|
|
325
|
|
|
295
|
|
|
1,315
|
|
||||||
Other
(h)
|
65
|
|
|
40
|
|
|
100
|
|
|
80
|
|
|
40
|
|
|
325
|
|
||||||
Total
|
$
|
975
|
|
|
$
|
550
|
|
|
$
|
360
|
|
|
$
|
410
|
|
|
$
|
340
|
|
|
$
|
2,635
|
|
Corporate and Other
|
$
|
55
|
|
|
$
|
80
|
|
|
$
|
70
|
|
|
$
|
70
|
|
|
$
|
70
|
|
|
$
|
345
|
|
(a)
|
Includes allowance for funds used during construction (AFUDC) of approximately $
35 million
, $
57 million
, $
50 million
and $
27 million
for the remainder of 2013 through 2016, respectively.
|
(b)
|
Includes land, generating structures, transmission interconnection and integration and licensing.
|
(c)
|
Consists of projects that have received FPSC approval. 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)
|
FPL has identified $
1.5 billion
to $
2.5 billion
in potential incremental capital expenditures through 2016 in addition to what is included in the table above. Excludes potential incremental capital expenditures totaling approximately
$1.6 billion
for the natural gas pipeline system. See Part II, Item 5. (c)(i).
|
(e)
|
Consists of capital expenditures for new wind projects and related transmission totaling approximately
450
mw, including approximately
125
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 total cost of approximately
$1.3
billion to
$1.7
billion. NEER expects to add up to
1,500
mw of new U.S. wind generation through 2014 at a total cost of up to
$3
billion.
|
(f)
|
Consists of capital expenditures for new solar projects and related transmission totaling
545
mw that have received applicable internal approvals, including equity contributions associated with a 50% equity investment in a
550
mw solar project. Excludes a solar project requiring internal approval with generation totaling
250
mw with an estimated cost of approximately
$600 million
to
$800 million
. Additionally, NEER expects to add up to
300
mw of incremental solar generation at a cost of up to
$1
billion through 2016.
|
(g)
|
Includes nuclear fuel.
|
(h)
|
Consists of capital expenditures that have received applicable internal approvals.
|
|
Remainder of 2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
FPL:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capacity charges:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Qualifying facilities
|
$
|
140
|
|
|
$
|
285
|
|
|
$
|
290
|
|
|
$
|
250
|
|
|
$
|
255
|
|
|
$
|
2,225
|
|
JEA and Southern subsidiaries
|
$
|
115
|
|
|
$
|
215
|
|
|
$
|
195
|
|
|
$
|
70
|
|
|
$
|
50
|
|
|
$
|
10
|
|
Minimum charges, at projected prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Natural gas, including transportation and storage
(b)
|
$
|
1,130
|
|
|
$
|
1,295
|
|
|
$
|
570
|
|
|
$
|
535
|
|
|
$
|
530
|
|
|
$
|
6,405
|
|
Coal
(b)
|
$
|
50
|
|
|
$
|
30
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
NEER
|
$
|
745
|
|
|
$
|
390
|
|
|
$
|
140
|
|
|
$
|
145
|
|
|
$
|
70
|
|
|
$
|
585
|
|
Corporate and Other
(c)(d)
|
$
|
30
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
10
|
|
(a)
|
Capacity charges under these contracts, substantially all of which are recoverable through the capacity clause, totaled approximately $
119 million
and $
129 million
for the
three months ended June 30, 2013 and 2012
, respectively, and approximately $
244 million
and $
262 million
for the six months ended June 30, 2013 and 2012, respectively. Energy charges under these contracts, which are recoverable through the fuel clause, totaled approximately $
86 million
and $
82 million
for the
three months ended June 30, 2013 and 2012
, respectively, and approximately $
109 million
and $
121 million
for the six months ended June 30, 2013 and 2012, respectively.
|
(b)
|
Recoverable through the fuel clause.
|
(c)
|
Includes an approximately
$65 million
commitment to invest in clean power and technology businesses through 2021.
|
(d)
|
Excludes approximately
$145 million
, in 2013, of joint obligations of NEECH and NEER which are included in the NEER amounts above.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
2,696
|
|
|
$
|
1,046
|
|
|
$
|
91
|
|
|
$
|
3,833
|
|
|
$
|
2,580
|
|
|
$
|
1,030
|
|
|
$
|
57
|
|
|
$
|
3,667
|
|
Operating expenses
|
$
|
1,972
|
|
|
$
|
806
|
|
|
$
|
74
|
|
|
$
|
2,852
|
|
|
$
|
1,918
|
|
|
$
|
698
|
|
(b)
|
$
|
51
|
|
|
$
|
2,667
|
|
Net income (loss)
|
$
|
391
|
|
|
$
|
229
|
|
(c)
|
$
|
(10
|
)
|
|
$
|
610
|
|
|
$
|
353
|
|
|
$
|
251
|
|
(c)
|
$
|
3
|
|
|
$
|
607
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
(a)
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
4,885
|
|
|
$
|
2,062
|
|
|
$
|
165
|
|
|
$
|
7,112
|
|
|
$
|
4,804
|
|
|
$
|
2,120
|
|
|
$
|
114
|
|
|
$
|
7,038
|
|
Operating expenses
|
$
|
3,618
|
|
|
$
|
1,955
|
|
(d)
|
$
|
124
|
|
|
$
|
5,697
|
|
|
$
|
3,661
|
|
|
$
|
1,477
|
|
(b)
|
$
|
97
|
|
|
$
|
5,235
|
|
Income from continuing operations
|
$
|
679
|
|
|
$
|
14
|
|
(c)
|
$
|
2
|
|
|
$
|
695
|
|
|
$
|
592
|
|
|
$
|
472
|
|
(c)
|
$
|
4
|
|
|
$
|
1,068
|
|
Net gain from discontinued operations, net of income taxes
(e)
|
$
|
—
|
|
|
$
|
175
|
|
|
$
|
13
|
|
|
$
|
188
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
679
|
|
|
$
|
189
|
|
(c)
|
$
|
15
|
|
|
$
|
883
|
|
|
$
|
592
|
|
|
$
|
472
|
|
(c)
|
$
|
4
|
|
|
$
|
1,068
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||
|
FPL
|
|
NEER
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
|
FPL
|
|
NEER
|
|
Corporate
and Other
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
$
|
35,990
|
|
|
$
|
27,091
|
|
|
$
|
2,136
|
|
|
$
|
65,217
|
|
|
$
|
34,853
|
|
|
$
|
27,139
|
|
(f)
|
$
|
2,447
|
|
|
$
|
64,439
|
|
(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)
|
Amount is restated to conform to current year's presentation.
|
(c)
|
Includes NEER's tax benefits related to PTCs and for the six months ended June 30, 2013 also includes after-tax charges of
$342 million
associated with the impairment of the Spain solar projects. See Note 3 - Nonrecurring Fair Value Measurements and Note 5.
|
(d)
|
Includes an impairment charge on NEER's Spain solar projects of
$300 million
. See Note 3 - Nonrecurring Fair Value Measurements.
|
(e)
|
See Note 6.
|
(f)
|
Includes assets held for sale of approximately
$335 million
.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
—
|
|
|
$
|
1,140
|
|
|
$
|
2,693
|
|
|
$
|
3,833
|
|
|
$
|
—
|
|
|
$
|
1,090
|
|
|
$
|
2,577
|
|
|
$
|
3,667
|
|
Operating expenses
(b)
|
(4
|
)
|
|
(878
|
)
|
|
(1,970
|
)
|
|
(2,852
|
)
|
|
(5
|
)
|
|
(747
|
)
|
|
(1,915
|
)
|
|
(2,667
|
)
|
||||||||
Interest expense
|
(2
|
)
|
|
(161
|
)
|
|
(103
|
)
|
|
(266
|
)
|
|
(3
|
)
|
|
(163
|
)
|
|
(104
|
)
|
|
(270
|
)
|
||||||||
Equity in earnings of subsidiaries
|
623
|
|
|
—
|
|
|
(623
|
)
|
|
—
|
|
|
607
|
|
|
—
|
|
|
(607
|
)
|
|
—
|
|
||||||||
Other income (deductions) - net
(b)
|
(1
|
)
|
|
94
|
|
|
13
|
|
|
106
|
|
|
2
|
|
|
108
|
|
|
10
|
|
|
120
|
|
||||||||
Income (loss) before income taxes
|
616
|
|
|
195
|
|
|
10
|
|
|
821
|
|
|
601
|
|
|
288
|
|
|
(39
|
)
|
|
850
|
|
||||||||
Income tax expense (benefit)
|
6
|
|
|
(36
|
)
|
|
241
|
|
|
211
|
|
|
(6
|
)
|
|
34
|
|
|
215
|
|
|
243
|
|
||||||||
Net income (loss)
|
$
|
610
|
|
|
$
|
231
|
|
|
$
|
(231
|
)
|
|
$
|
610
|
|
|
$
|
607
|
|
|
$
|
254
|
|
|
$
|
(254
|
)
|
|
$
|
607
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating revenues
|
$
|
—
|
|
|
$
|
2,234
|
|
|
$
|
4,878
|
|
|
$
|
7,112
|
|
|
$
|
—
|
|
|
$
|
2,241
|
|
|
$
|
4,797
|
|
|
$
|
7,038
|
|
Operating expenses
(b)
|
(7
|
)
|
|
(2,078
|
)
|
|
(3,612
|
)
|
|
(5,697
|
)
|
|
(9
|
)
|
|
(1,572
|
)
|
|
(3,654
|
)
|
|
(5,235
|
)
|
||||||||
Interest expense
|
(5
|
)
|
|
(331
|
)
|
|
(201
|
)
|
|
(537
|
)
|
|
(6
|
)
|
|
(324
|
)
|
|
(206
|
)
|
|
(536
|
)
|
||||||||
Equity in earnings of subsidiaries
|
872
|
|
|
—
|
|
|
(872
|
)
|
|
—
|
|
|
1,065
|
|
|
—
|
|
|
(1,065
|
)
|
|
—
|
|
||||||||
Other income - net
(b)
|
1
|
|
|
168
|
|
|
27
|
|
|
196
|
|
|
2
|
|
|
181
|
|
|
17
|
|
|
200
|
|
||||||||
Income (loss) from continuing operations before income taxes
|
861
|
|
|
(7
|
)
|
|
220
|
|
|
1,074
|
|
|
1,052
|
|
|
526
|
|
|
(111
|
)
|
|
1,467
|
|
||||||||
Income tax expense (benefit)
|
(9
|
)
|
|
(25
|
)
|
|
413
|
|
|
379
|
|
|
(16
|
)
|
|
53
|
|
|
362
|
|
|
399
|
|
||||||||
Income (loss) from continuing operations
|
870
|
|
|
18
|
|
|
(193
|
)
|
|
695
|
|
|
1,068
|
|
|
473
|
|
|
(473
|
)
|
|
1,068
|
|
||||||||
Net gain from discontinued operations, net of income taxes
|
13
|
|
|
175
|
|
|
—
|
|
|
188
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net income (loss)
|
$
|
883
|
|
|
$
|
193
|
|
|
$
|
(193
|
)
|
|
$
|
883
|
|
|
$
|
1,068
|
|
|
$
|
473
|
|
|
$
|
(473
|
)
|
|
$
|
1,068
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Comprehensive income (loss)
|
$
|
644
|
|
|
$
|
265
|
|
|
$
|
(265
|
)
|
|
$
|
644
|
|
|
$
|
511
|
|
|
$
|
151
|
|
|
$
|
(151
|
)
|
|
$
|
511
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
|
NEE
(Guarantor)
|
|
NEECH
|
|
Other
(a)
|
|
NEE
Consoli-
dated
|
||||||||||||||||
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
||||||||||||||||||
Comprehensive income (loss)
|
$
|
1,036
|
|
|
$
|
339
|
|
|
$
|
(339
|
)
|
|
$
|
1,036
|
|
|
$
|
1,032
|
|
|
$
|
442
|
|
|
$
|
(442
|
)
|
|
$
|
1,032
|
|
(a)
|
Represents FPL and consolidating adjustments.
|
(a)
|
Represents FPL and consolidating adjustments.
|
(a)
|
Represents FPL and consolidating adjustments.
|
|
Net Income (Loss)
|
|
Earnings (Loss)
Per Share,
assuming dilution
|
|
Net Income
|
|
Earnings Per Share,
assuming dilution
|
||||||||||||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
|
(millions)
|
|
|
|
(millions)
|
|
|
|
|
||||||||||||||||||||||
FPL
|
$
|
391
|
|
|
$
|
353
|
|
|
$
|
0.92
|
|
|
$
|
0.85
|
|
|
$
|
679
|
|
|
$
|
592
|
|
|
$
|
1.60
|
|
|
$
|
1.42
|
|
NEER
(a)
|
229
|
|
|
251
|
|
|
0.54
|
|
|
0.60
|
|
|
189
|
|
472
|
|
|
0.45
|
|
1.13
|
|
||||||||||
Corporate and Other
|
(10
|
)
|
|
3
|
|
|
(0.02
|
)
|
|
—
|
|
|
15
|
|
|
4
|
|
|
0.03
|
|
|
0.02
|
|
||||||||
NEE
|
$
|
610
|
|
|
$
|
607
|
|
|
$
|
1.44
|
|
|
$
|
1.45
|
|
|
$
|
883
|
|
|
$
|
1,068
|
|
|
$
|
2.08
|
|
|
$
|
2.57
|
|
(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.
|
•
|
NEE, through its subsidiaries, may have the potential to deploy additional growth capital through 2016.
FPL has identified potential incremental capital expenditures that have the potential to improve its long-term customer value proposition and create value for NEE shareholders.
NEER expects to invest capital for additional U.S. wind projects with generation up to 1,500 mw in 2013 and 2014 and potential incremental capital for solar projects with generation up to 300 mw through 2016. NEER also expects to deploy approximately $200 million to $250 million per year of net capital in its gas infrastructure business through 2016.
|
•
|
NEET is actively competing for new transmission projects throughout North America.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||
|
(millions)
|
||||||||||||||||
Net unrealized mark-to-market after-tax gains (losses) from non-qualifying hedge activity
(a)
|
$
|
(9
|
)
|
|
$
|
65
|
|
|
$
|
(61
|
)
|
|
$
|
102
|
|
||
Income (loss) from OTTI after-tax losses on securities held in NEER's nuclear decommissioning funds, net of OTTI reversals
|
$
|
(1
|
)
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
17
|
|
||
After-tax charges recorded by NEER associated with the impairment of the Spain solar projects
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(342
|
)
|
|
$
|
—
|
|
||
After-tax net gain from discontinued operations
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
188
|
|
|
$
|
—
|
|
(a)
|
For the
three months ended June 30, 2013
, $8 million of losses are included in NEER's net income; the balance is included in Corporate and Other. All of the loss reported for the
six months ended June 30, 2013
is included in NEER's net income. For the
three and six months ended June 30, 2012
, $63 million and $100 million of gains, respectively, are included in NEER's net income; the balance is included in Corporate and Other.
|
(b)
|
For the
six months ended June 30, 2013
, $175 million of the gain is included in NEER's net income; the balance is included in Corporate and Other.
|
•
|
higher earnings on investment in plant in service of $43 million and $89 million, respectively. Average investment in plant in service grew FPL's retail rate base by approximately $3.6 billion and $3.2 billion for the
three and six months ended June 30, 2013
, respectively, reflecting, among other things, the extended power uprates at FPL's nuclear units, the
modernized Cape Canaveral facility (Cape Canaveral unit) and ongoing transmission and distribution additions,
|
•
|
lower cost recovery clause results of $9 million and $15 million, respectively.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions)
|
||||||||||||||
Retail base
|
$
|
1,280
|
|
|
$
|
1,086
|
|
|
$
|
2,310
|
|
|
$
|
2,021
|
|
Fuel cost recovery
|
828
|
|
|
959
|
|
|
1,547
|
|
|
1,785
|
|
||||
Net recognition of previously deferred retail fuel revenues
|
54
|
|
|
—
|
|
|
44
|
|
|
—
|
|
||||
Other cost recovery clauses and pass-through costs, net of any deferrals
|
459
|
|
|
469
|
|
|
847
|
|
|
880
|
|
||||
Other, primarily wholesale and transmission sales, customer-related fees and pole attachment rentals
|
75
|
|
|
66
|
|
|
137
|
|
|
118
|
|
||||
Total
|
$
|
2,696
|
|
|
$
|
2,580
|
|
|
$
|
4,885
|
|
|
$
|
4,804
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||
|
(millions)
|
||||||||||||||||
Fuel and energy charges during the period
|
$
|
972
|
|
|
$
|
930
|
|
|
$
|
1,681
|
|
|
$
|
1,688
|
|
||
Net recognition of previously deferred retail fuel costs
|
—
|
|
|
26
|
|
|
—
|
|
|
92
|
|
||||||
Net deferral of retail fuel costs
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
||||||
Other, primarily capacity charges, net of any capacity deferral
|
137
|
|
|
130
|
|
|
248
|
|
|
241
|
|
||||||
Total
|
$
|
1,018
|
|
|
$
|
1,086
|
|
|
$
|
1,838
|
|
|
$
|
2,021
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions)
|
||||||||||||||
Reserve amortization recorded under the 2012 and 2010 rate agreements, respectively
|
$
|
(82
|
)
|
|
$
|
(165
|
)
|
|
$
|
(219
|
)
|
|
$
|
(329
|
)
|
Other depreciation and amortization recovered under base rates
|
276
|
|
|
251
|
|
|
546
|
|
|
502
|
|
||||
Depreciation and amortization recovered under cost recovery clauses and securitized storm-recovery cost amortization
|
54
|
|
|
39
|
|
|
102
|
|
|
70
|
|
||||
Total
|
$
|
248
|
|
|
$
|
125
|
|
|
$
|
429
|
|
|
$
|
243
|
|
|
Increase (Decrease)
From Prior Period
|
||||||
|
Three Months Ended
June 30, 2013
|
|
Six Months Ended
June 30, 2013
|
||||
|
(millions)
|
||||||
New investments
(a)
|
$
|
51
|
|
|
$
|
66
|
|
Existing assets
(a)
|
17
|
|
|
(5
|
)
|
||
Gas infrastructure
(b)
|
10
|
|
|
(2
|
)
|
||
Customer supply and proprietary power and gas trading businesses
(b)
|
(11
|
)
|
|
8
|
|
||
Interest expense, differential membership costs and other
|
(2
|
)
|
|
(6
|
)
|
||
Change in unrealized mark-to-market non-qualifying hedge activity
(c)(d)
|
(71
|
)
|
|
(161
|
)
|
||
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals
(d)
|
(16
|
)
|
|
(16
|
)
|
||
Charges associated with the impairment of the Spain solar projects
(e)
|
—
|
|
|
(342
|
)
|
||
Net gain from discontinued operations
(f)
|
—
|
|
|
175
|
|
||
Net income decrease
|
$
|
(22
|
)
|
|
$
|
(283
|
)
|
(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 and Overview for additional information.
|
(f)
|
See Note 6 and Overview for additional information
.
|
•
|
the addition of approximately 1,343 mw of wind and 100 mw of solar generation during or after the
three months ended June 30, 2012
, and
|
•
|
higher deferred income tax and other benefits associated with convertible ITCs of $10 million.
|
•
|
the addition of approximately 1,520 mw of wind and 140 mw of solar generation during or after the
six months ended June 30, 2012
,
|
•
|
lower stat
e ITCs of $8 million.
|
•
|
higher wind generation of approximately $6 million,
|
•
|
increased generation at Seabrook, primarily due to the absence of a 2012 reduction in capacity, as well as lower operating costs at that facility, and
|
•
|
improved results of $9 million in the Electric Reliability Council of Texas (ERCOT) region primarily due to the absence of outages that occurred in 2012 at the natural gas facilities,
|
•
|
lower results of $8 million due to the absence of the hydro assets which were sold in the first quarter of 2013, and
|
•
|
PTC roll off of $3 million.
|
•
|
lower wind generation of approximately $21 million, and
|
•
|
PTC roll off of $6 million,
|
•
|
increased generation at Seabrook, primarily due to the absence of a 2012 reduction in capacity, as well as lower operating costs at that facility.
|
•
|
higher revenues from new investments of approximately $65 million, and
|
•
|
higher revenues in the New England Power Pool (NEPOOL) region primarily due to higher generation at Seabrook due to the absence of a 2012 reduction in capacity and higher revenues in the ERCOT region primarily due to the absence of outages that occurred in 2012 at the natural gas facilities, offset in part by lower revenues at NextEra Energy Power Marketing, LLC (PMI) and lower contracted revenues (collectively, $53 million),
|
•
|
higher unrealized mark-to-market losses from non-qualifying hedges ($7 million for the
three months ended June 30, 2013
compared to $100 million of gains on such hedges for the comparable period in 2012).
|
•
|
higher unrealized mark-to-market losses from non-qualifying hedges ($107 million for the
six months ended June 30, 2013
compared to $223 million of gains on such hedges for the comparable period in 2012), and
|
•
|
lower wind generation from the existing asset portfolio of approximately $41 million,
|
•
|
higher revenues from new investments of $109 million,
|
•
|
higher revenues in the NEPOOL region primarily due to higher generation at Seabrook due to the absence of a 2012 reduction in capacity and higher revenues in the ERCOT region primarily due to the absence of outages that occurred in 2012 at the natural gas facilities, offset in part by lower revenues at PMI (collectively, $108 million), and
|
•
|
higher gas infrastructure revenues.
|
•
|
higher operating expenses associated with new investments of approximately $33 million,
|
•
|
higher fuel expense in the NEPOOL and ERCOT regions, offset in part by lower fuel expense at PMI (collectively, $55 million),
and
|
•
|
higher unrealized mark-to-market losses from non-qualifying hedges ($31 million for the
three months ended June 30, 2013
compared to $8 million of such losses for the comparable period in 2012).
|
•
|
an impairment charge of $300 million related to the Spain solar projects,
|
•
|
higher operating expenses associated with new investments of approximately $66 million,
|
•
|
higher fuel expense in the NEPOOL and ERCOT regions, offset in part by lower fuel expense at PMI (collectively, $76 million),
and
|
•
|
higher gas infrastructure operating expenses,
|
•
|
lower unrealized mark-to-market losses from non-qualifying hedges ($19 million for the
six months ended June 30, 2013
compared to $61 million of such losses for the comparable period in 2012).
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions)
|
||||||||||||||
Interest expense, net of allocations to NEER
|
$
|
(30
|
)
|
|
$
|
(23
|
)
|
|
$
|
(58
|
)
|
|
$
|
(44
|
)
|
Interest income
|
8
|
|
|
8
|
|
|
16
|
|
|
16
|
|
||||
Federal and state income tax benefits
|
(7
|
)
|
|
9
|
|
|
19
|
|
|
15
|
|
||||
Other
|
19
|
|
|
9
|
|
|
38
|
|
|
17
|
|
||||
Net income (loss)
|
$
|
(10
|
)
|
|
$
|
3
|
|
|
$
|
15
|
|
|
$
|
4
|
|
|
NEE
|
|
FPL
|
||||||||||||
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(millions)
|
||||||||||||||
Sources of cash:
|
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities
|
$
|
2,250
|
|
|
$
|
1,928
|
|
|
$
|
1,546
|
|
|
$
|
1,267
|
|
Long-term borrowings and change in loan proceeds restricted for construction
|
3,069
|
|
|
2,425
|
|
|
498
|
|
|
594
|
|
||||
Proceeds from investors related to differential membership interests - net
|
164
|
|
|
335
|
|
|
—
|
|
|
—
|
|
||||
Capital contribution from NEE
|
—
|
|
|
—
|
|
|
—
|
|
|
240
|
|
||||
Cash grants under the Recovery Act
|
170
|
|
|
3
|
|
|
|
|
|
—
|
|
||||
Issuances of common stock - net
|
9
|
|
|
372
|
|
|
—
|
|
|
—
|
|
||||
Net increase in short-term debt
|
—
|
|
|
170
|
|
|
241
|
|
|
208
|
|
||||
Other sources - net
|
41
|
|
|
15
|
|
|
12
|
|
|
28
|
|
||||
Total sources of cash
|
5,703
|
|
|
5,248
|
|
|
2,297
|
|
|
2,337
|
|
||||
Uses of cash:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures, independent power and other investments and nuclear fuel purchases
|
(3,154
|
)
|
|
(4,030
|
)
|
|
(1,506
|
)
|
|
(2,263
|
)
|
||||
Retirements of long-term debt
|
(1,425
|
)
|
|
(646
|
)
|
|
(427
|
)
|
|
(25
|
)
|
||||
Net decrease in short-term debt
|
(370
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Dividends
|
(557
|
)
|
|
(500
|
)
|
|
(340
|
)
|
|
—
|
|
||||
Repurchases of common stock
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
||||
Other uses - net
|
(115
|
)
|
|
(135
|
)
|
|
(34
|
)
|
|
(59
|
)
|
||||
Total uses of cash
|
(5,621
|
)
|
|
(5,330
|
)
|
|
(2,307
|
)
|
|
(2,347
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
$
|
82
|
|
|
$
|
(82
|
)
|
|
$
|
(10
|
)
|
|
$
|
(10
|
)
|
|
Six Months Ended June 30,
|
||||||
|
2013
|
|
2012
|
||||
|
(millions)
|
||||||
FPL:
|
|
|
|
||||
Generation:
|
|
|
|
||||
New
|
$
|
596
|
|
|
$
|
1,264
|
|
Existing
|
297
|
|
|
331
|
|
||
Transmission and distribution
|
405
|
|
|
466
|
|
||
Nuclear fuel
|
41
|
|
|
117
|
|
||
General and other
|
79
|
|
|
35
|
|
||
Other, primarily the exclusion of AFUDC - equity and change in accrued property additions
|
88
|
|
|
50
|
|
||
Total
|
1,506
|
|
|
2,263
|
|
||
NEER:
|
|
|
|
||||
Wind
|
634
|
|
|
446
|
|
||
Solar
|
468
|
|
|
630
|
|
||
Nuclear, including nuclear fuel
|
112
|
|
|
156
|
|
||
Other
|
341
|
|
|
264
|
|
||
Total
|
1,555
|
|
|
1,496
|
|
||
Corporate and Other
|
93
|
|
|
271
|
|
||
Total capital expenditures and independent power and other investments and nuclear fuel purchases
|
$
|
3,154
|
|
|
$
|
4,030
|
|
|
|
|
|
|
|
|
Maturity Date
|
||||||||
|
FPL
|
|
NEECH
|
|
Total
|
|
FPL
|
|
NEECH
|
||||||
|
|
|
(millions)
|
|
|
|
|
|
|
||||||
Bank revolving line of credit facilities
(a)
|
$
|
3,000
|
|
|
$
|
4,600
|
|
|
$
|
7,600
|
|
|
(b)
|
|
(b)
|
Less letters of credit
|
(3
|
)
|
|
(1,005
|
)
|
|
(1,008
|
)
|
|
|
|
|
|||
|
2,997
|
|
|
3,595
|
|
|
6,592
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Revolving credit facility
|
235
|
|
|
—
|
|
|
235
|
|
|
2014
|
|
|
|||
Less borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
|
235
|
|
|
—
|
|
|
235
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Letter of credit facilities
(c)
|
—
|
|
|
250
|
|
|
250
|
|
|
|
|
2015
|
|||
Less letters of credit
|
—
|
|
|
(71
|
)
|
|
(71
|
)
|
|
|
|
|
|||
|
—
|
|
|
179
|
|
|
179
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Subtotal
|
3,232
|
|
|
3,774
|
|
|
7,006
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
30
|
|
|
381
|
|
|
411
|
|
|
|
|
|
|||
Less commercial paper
|
(346
|
)
|
|
(320
|
)
|
|
(666
|
)
|
|
|
|
|
|||
Net available liquidity
|
$
|
2,916
|
|
|
$
|
3,835
|
|
|
$
|
6,751
|
|
|
|
|
|
(a)
|
Provide for the funding of loans up to $7,600 million ($3,000 million for FPL) and the issuance of letters of credit up to $6,600 million ($2,500 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 respective commercial paper programs and other short-term borrowings and to provide additional liquidity in the event of a loss to the companies’ or their subsidiaries’ operating facilities (including, in the case of FPL, a transmission and distribution property loss). FPL’s bank revolving line of credit facilities are also available to support the purchase of $633 million of pollution control, solid waste disposal and industrial development revenue bonds (tax exempt bonds) in the event they are tendered by individual bond holders and not remarketed prior to maturity.
|
(b)
|
$500 million of NEECH
'
s and $500 million of FPL's bank revolving line of credit facilities expire in December 2013 and in 2016, respectively. Essentially all of the remaining facilities at each of FPL and NEECH expire in 2018.
|
(c)
|
Only available for the issuance of letters of credit.
|
|
Original
Amount
|
|
Amount
Remaining
Available at
June 30, 2013
|
|
Rate
|
|
Maturity
Date
|
|
Related
Project Use
|
|
|
(millions)
|
|
|
|
|
|
|
|||
NEECH and certain subsidiaries of NEER:
|
|
|
|
|
|
|
|
|
|
|
Canadian revolving credit agreements
(a)
|
C$750
|
|
$208
|
|
Variable
|
|
Various
|
|
Canadian renewable generating assets
|
|
Revolving loan agreement
|
€170
|
|
$33
|
|
Variable
|
|
2014
|
|
Construction of Spain solar projects
|
|
Certain subsidiaries of NEER:
|
|
|
|
|
|
|
|
|
|
|
Senior secured limited-recourse loan agreement
(b)
|
€589
|
|
$106
|
|
Variable
|
|
2030
|
|
Construction of Spain solar projects
|
|
Term loan facility
|
$150
|
150
|
|
$150
|
|
Variable
|
|
2019
|
|
Construction of Genesis solar project
|
(a)
|
Available for general corporate purposes; the current intent is to use these facilities for the purchase, development, construction, and/or operation of Canadian renewable generating assets. Consist of agreements with original amounts of C$150 million with a maturity date of 2013, C$400 million with a maturity date of 2014, C$100 million with a maturity date of 2015, and C$100 million with a maturity date of 2016 with approximately $1 million, $17 million, $95 million and $95 million, respectively, remaining available under these agreements at
June 30, 2013
.
|
(b)
|
See Note 10 - Commitments for a discussion of the effect that a change in Spanish law has had on the senior secured limited-recourse loan agreement.
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
FPL Cost
Recovery
Clauses
|
|
NEE Total
|
||||||||
|
(millions)
|
||||||||||||||
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
Fair value of contracts outstanding at March 31, 2013
|
$
|
294
|
|
|
$
|
574
|
|
|
$
|
144
|
|
|
$
|
1,012
|
|
Reclassification to realized at settlement of contracts
|
(3
|
)
|
|
(36
|
)
|
|
(41
|
)
|
|
(80
|
)
|
||||
Inception value of new contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net option premium purchases (issuances)
|
(13
|
)
|
|
4
|
|
|
—
|
|
|
(9
|
)
|
||||
Changes in fair value excluding reclassification to realized
|
18
|
|
|
4
|
|
|
(149
|
)
|
|
(127
|
)
|
||||
Fair value of contracts outstanding at June 30, 2013
|
296
|
|
|
546
|
|
|
(46
|
)
|
|
796
|
|
||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
(151
|
)
|
|||||||
Total mark-to-market energy contract net assets (liabilities) at June 30, 2013
|
$
|
296
|
|
|
$
|
546
|
|
|
$
|
(46
|
)
|
|
$
|
645
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
FPL Cost
Recovery
Clauses
|
|
NEE Total
|
||||||||
|
(millions)
|
||||||||||||||
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
Fair value of contracts outstanding at December 31, 2012
|
$
|
261
|
|
|
$
|
674
|
|
|
$
|
(15
|
)
|
|
$
|
920
|
|
Reclassification to realized at settlement of contracts
|
(6
|
)
|
|
(46
|
)
|
|
(26
|
)
|
|
(78
|
)
|
||||
Inception value of new contracts
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Net option premium purchases (issuances)
|
(19
|
)
|
|
(8
|
)
|
|
—
|
|
|
(27
|
)
|
||||
Changes in fair value excluding reclassification to realized
|
57
|
|
|
(74
|
)
|
|
(5
|
)
|
|
(22
|
)
|
||||
Fair value of contracts outstanding at June 30, 2013
|
296
|
|
|
546
|
|
|
(46
|
)
|
|
796
|
|
||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
(151
|
)
|
|||||||
Total mark-to-market energy contract net assets (liabilities) at June 30, 2013
|
$
|
296
|
|
|
$
|
546
|
|
|
$
|
(46
|
)
|
|
$
|
645
|
|
|
June 30, 2013
|
||
|
(millions)
|
||
Current derivative assets
|
$
|
434
|
|
Noncurrent derivative assets
|
802
|
|
|
Current derivative liabilities
|
(322
|
)
|
|
Noncurrent derivative liabilities
|
(269
|
)
|
|
NEE's total mark-to-market energy contract net assets
|
$
|
645
|
|
|
|
Maturity
|
||||||||||||||||||||||||||
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
|
(millions)
|
||||||||||||||||||||||||||
Trading:
|
|
|
||||||||||||||||||||||||||
Quoted prices in active markets for identical assets
|
|
$
|
(40
|
)
|
|
$
|
27
|
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
Significant other observable inputs
|
|
36
|
|
|
12
|
|
|
27
|
|
|
32
|
|
|
26
|
|
|
(1
|
)
|
|
132
|
|
|||||||
Significant unobservable inputs
|
|
26
|
|
|
40
|
|
|
24
|
|
|
30
|
|
|
28
|
|
|
26
|
|
|
174
|
|
|||||||
Total
|
|
22
|
|
|
79
|
|
|
56
|
|
|
60
|
|
|
54
|
|
|
25
|
|
|
296
|
|
|||||||
Owned Assets - Non-Qualifying:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Quoted prices in active markets for identical assets
|
|
—
|
|
|
(12
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||||
Significant other observable inputs
|
|
34
|
|
|
66
|
|
|
55
|
|
|
79
|
|
|
14
|
|
|
6
|
|
|
254
|
|
|||||||
Significant unobservable inputs
|
|
(12
|
)
|
|
50
|
|
|
39
|
|
|
42
|
|
|
46
|
|
|
137
|
|
|
302
|
|
|||||||
Total
|
|
22
|
|
|
104
|
|
|
96
|
|
|
121
|
|
|
60
|
|
|
143
|
|
|
546
|
|
|||||||
Owned Assets - FPL Cost Recovery Clauses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Quoted prices in active markets for identical assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Significant other observable inputs
|
|
2
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|||||||
Significant unobservable inputs
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Total
|
|
1
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|||||||
Total sources of fair value
|
|
$
|
45
|
|
|
$
|
136
|
|
|
$
|
152
|
|
|
$
|
181
|
|
|
$
|
114
|
|
|
$
|
168
|
|
|
$
|
796
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE
Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Three months ended June 30, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at March 31, 2012
|
$
|
75
|
|
|
$
|
796
|
|
|
$
|
7
|
|
|
$
|
(597
|
)
|
|
$
|
281
|
|
Reclassification to realized at settlement of contracts
|
(1
|
)
|
|
(39
|
)
|
|
(3
|
)
|
|
219
|
|
|
176
|
|
|||||
Changes in fair value excluding reclassification to realized
|
39
|
|
|
142
|
|
|
—
|
|
|
76
|
|
|
257
|
|
|||||
Fair value of contracts outstanding at June 30, 2012
|
113
|
|
|
899
|
|
|
4
|
|
|
(302
|
)
|
|
714
|
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
|
|
|
|
(147
|
)
|
|||||
Total mark-to-market energy contract net assets (liabilities) at June 30, 2012
|
$
|
113
|
|
|
$
|
899
|
|
|
$
|
4
|
|
|
$
|
(302
|
)
|
|
$
|
567
|
|
|
|
|
Hedges on Owned Assets
|
|
|
||||||||||||||
|
Trading
|
|
Non-
Qualifying
|
|
OCI
|
|
FPL Cost
Recovery
Clauses
|
|
NEE
Total
|
||||||||||
|
(millions)
|
||||||||||||||||||
Six months ended June 30, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of contracts outstanding at December 31, 2011
|
$
|
15
|
|
|
$
|
720
|
|
|
$
|
8
|
|
|
$
|
(501
|
)
|
|
$
|
242
|
|
Reclassification to realized at settlement of contracts
|
25
|
|
|
(90
|
)
|
|
(4
|
)
|
|
375
|
|
|
306
|
|
|||||
Inception value of new contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Net option premium purchases (issuances)
|
(22
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||||
Changes in fair value excluding reclassification to realized
|
95
|
|
|
266
|
|
|
—
|
|
|
(176
|
)
|
|
185
|
|
|||||
Fair value of contracts outstanding at June 30, 2012
|
113
|
|
|
899
|
|
|
4
|
|
|
(302
|
)
|
|
714
|
|
|||||
Net margin cash collateral paid (received)
|
|
|
|
|
|
|
|
|
|
|
|
|
(147
|
)
|
|||||
Total mark-to-market energy contract net assets (liabilities) at June 30, 2012
|
$
|
113
|
|
|
$
|
899
|
|
|
$
|
4
|
|
|
$
|
(302
|
)
|
|
$
|
567
|
|
|
Trading
|
|
Non-Qualifying Hedges and
Hedges in FPL Cost Recovery Clauses
(a)
|
|
Total
|
||||||||||||||||||||||||||||||
|
FPL
|
|
NEER
|
|
NEE
|
|
FPL
|
|
NEER
|
|
NEE
|
|
FPL
|
|
NEER
|
|
NEE
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
(millions)
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2012
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
34
|
|
|
$
|
88
|
|
|
$
|
76
|
|
|
$
|
34
|
|
|
$
|
87
|
|
|
$
|
76
|
|
June 30, 2013
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
49
|
|
|
$
|
50
|
|
|
$
|
46
|
|
|
$
|
49
|
|
|
$
|
49
|
|
|
$
|
45
|
|
Average for the six months ended June 30, 2013
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
34
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
33
|
|
(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 FPL cost recovery clauses category do not represent the economic exposure to commodity price movements.
|
|
June 30, 2013
|
|
December 31, 2012
|
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
||||||||
|
(millions)
|
|
||||||||||||||
NEE:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
||||||||
Special use funds
|
$
|
1,970
|
|
|
$
|
1,970
|
|
(a)
|
$
|
1,979
|
|
|
$
|
1,979
|
|
(a)
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
Notes receivable
|
$
|
500
|
|
|
$
|
599
|
|
(b)
|
$
|
500
|
|
|
$
|
665
|
|
(b)
|
Debt securities
|
$
|
122
|
|
|
$
|
122
|
|
(a)
|
$
|
111
|
|
|
$
|
111
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
27,183
|
|
|
$
|
28,600
|
|
(c)
|
$
|
26,647
|
|
(d)
|
$
|
28,874
|
|
(c)
|
Interest rate swaps - net unrealized losses
|
$
|
(154
|
)
|
|
$
|
(154
|
)
|
(e)
|
$
|
(311
|
)
|
|
$
|
(311
|
)
|
(e)
|
FPL:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income securities - special use funds
|
$
|
1,524
|
|
|
$
|
1,524
|
|
(a)
|
$
|
1,526
|
|
|
$
|
1,526
|
|
(a)
|
Long-term debt, including current maturities
|
$
|
8,853
|
|
|
$
|
9,725
|
|
(c)
|
$
|
8,782
|
|
|
$
|
10,421
|
|
(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)
|
Also includes long-term debt reflected in liabilities associated with assets held for sale on the condensed consolidated balance sheets, for which the carrying amount approximates fair value.
|
(e)
|
Modeled internally using discounted cash flow valuation technique and applying a credit valuation adjustment.
|
•
|
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 June 30, 2013
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)
|
|||
4/1/13 - 4/30/13
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
13,274,748
|
5/1/13 - 5/31/13
|
|
3,409
|
|
|
$
|
81.16
|
|
|
—
|
|
13,274,748
|
6/1/13 - 6/30/13
|
|
515
|
|
|
$
|
78.49
|
|
|
—
|
|
13,274,748
|
Total
|
|
3,924
|
|
|
$
|
80.81
|
|
|
—
|
|
|
(a)
|
Includes: (1) in May 2013, 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 June 2013, 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 - FPL - FPL Sources of Generation - Fossil Operations (Natural Gas, Coal and Oil) in the 2012 Form 10-K.
|
(ii)
|
Reference is made to Item 1. Business - NEE's Operating Subsidiaries - Other NEE Operating Subsidiaries - NEET - Lone Star in the 2012 Form 10-K.
|
(iii)
|
Reference is made to Item 1. Business - NEE Environmental Matters - Environmental Regulations in the 2012 Form 10-K.
|
(iv)
|
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 2012 Form 10-K and Part II, Item 5. (c)(ii) in the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013 for NEE and FPL.
|
(v)
|
Reference is made to Item 1. Business - NEE Environmental Matters - Environmental Regulations - Clean Water Act Section 316(b) in the 2012 Form 10-K.
|
(vi)
|
Reference is made to Item 1. Business - NEE Environmental Matters - Environmental Regulations - Regulation of GHG Emissions in the 2012 Form 10-K.
|
Exhibit
Number
|
|
Description
|
|
NEE
|
|
FPL
|
*4(a)
|
|
Mortgage and Deed of Trust dated as of January 1, 1944, and One hundred and twenty-one Supplements thereto, between Florida Power & Light Company and Deutsche Bank Trust Company Americas, Trustee (filed as Exhibit B-3, File No. 2-4845; Exhibit 7(a), File No. 2-7126; Exhibit 7(a), File No. 2-7523; Exhibit 7(a), File No. 2-7990; Exhibit 7(a), File No. 2-9217; Exhibit 4(a)-5, File No. 2-10093; Exhibit 4(c), File No. 2-11491; Exhibit 4(b)-1, File No. 2-12900; Exhibit 4(b)-1, File No. 2-13255; Exhibit 4(b)-1, File No. 2-13705; Exhibit 4(b)-1, File No. 2-13925; Exhibit 4(b)-1, File No. 2-15088; Exhibit 4(b)-1, File No. 2-15677; Exhibit 4(b)-1, File No. 2-20501; Exhibit 4(b)-1, File No. 2-22104; Exhibit 2(c), File No. 2-23142; Exhibit 2(c), File No. 2-24195; Exhibit 4(b)-1, File No. 2-25677; Exhibit 2(c), File No. 2-27612; Exhibit 2(c), File No. 2-29001; Exhibit 2(c), File No. 2-30542; Exhibit 2(c), File No. 2-33038; Exhibit 2(c), File No. 2-37679; Exhibit 2(c), File No. 2-39006; Exhibit 2(c), File No. 2-41312; Exhibit 2(c), File No. 2-44234; Exhibit 2(c), File No. 2-46502; Exhibit 2(c), File No. 2-48679; Exhibit 2(c), File No. 2-49726; Exhibit 2(c), File No. 2-50712; Exhibit 2(c), File No. 2-52826; Exhibit 2(c), File No. 2-53272; Exhibit 2(c), File No. 2-54242; Exhibit 2(c), File No. 2-56228; Exhibits 2(c) and 2(d), File No. 2-60413; Exhibits 2(c) and 2(d), File No. 2-65701; Exhibit 2(c), File No. 2-66524; Exhibit 2(c), File No. 2-67239; Exhibit 4(c), File No. 2-69716; Exhibit 4(c), File No. 2-70767; Exhibit 4(b), File No. 2-71542; Exhibit 4(b), File No. 2-73799; Exhibits 4(c), 4(d) and 4(e), File No. 2-75762; Exhibit 4(c), File No. 2-77629; Exhibit 4(c), File No. 2-79557; Exhibit 99(a) to Post-Effective Amendment No. 5 to Form S-8, File No. 33-18669; Exhibit 99(a) to Post-Effective Amendment No. 1 to Form S-3, File No. 33-46076; Exhibit 4(b) to Form 10-K for the year ended December 31, 1993, File No. 1-3545; Exhibit 4(i) to Form 10-Q for the quarter ended June 30, 1994, File No. 1-3545; Exhibit 4(b) to Form 10-Q for the quarter ended June 30, 1995, File No. 1-3545; Exhibit 4(a) to Form 10-Q for the quarter ended March 31,1996, File No. 1-3545; Exhibit 4 to Form 10-Q for the quarter ended June 30, 1998, File No. 1-3545; Exhibit 4 to Form 10-Q for the quarter ended March 31, 1999, File No. 1-3545; Exhibit 4(f) to Form 10-K for the year ended December 31, 2000, File No. 1-3545; Exhibit 4(g) to Form 10-K for the year ended December 31, 2000, File No. 1-3545; Exhibit 4(o), File No. 333-102169; Exhibit 4(k) to Post-Effective Amendment No. 1 to Form S-3, File No. 333-102172; Exhibit 4(l) to Post-Effective Amendment No. 2 to Form S-3, File No. 333-102172; Exhibit 4(m) to Post-Effective Amendment No. 3 to Form S-3, File No. 333-102172; Exhibit 4(a) to Form 10-Q for the quarter ended September 30, 2004, File No. 2-27612; Exhibit 4(f) to Amendment No. 1 to Form S-3, File No. 333-125275; Exhibit 4(y) to Post-Effective Amendment No. 2 to Form S-3, File Nos. 333-116300, 333-116300-01 and 333-116300-02; Exhibit 4(z) to Post-Effective Amendment No. 3 to Form S-3, File Nos. 333-116300, 333-116300-01 and 333-116300-02; Exhibit 4(b) to Form 10-Q for the quarter ended March 31, 2006, File No. 2-27612; Exhibit 4(a) to Form 8-K dated April 17, 2007, File No. 2-27612; Exhibit 4 to Form 8-K dated October 10, 2007, File No. 2-27612; Exhibit 4 to Form 8-K dated January 16, 2008, File No. 2-27612; Exhibit 4(a) to Form 8-K dated March 17, 2009, File No. 2-27612; Exhibit 4 to Form 8-K dated February 9, 2010, File No. 2-27612; Exhibit 4 to Form 8-K dated December 9, 2010, File No. 2-27612; Exhibit 4(a) to Form 8-K dated June 10, 2011, File No. 2-27612; Exhibit 4 to Form 8-K dated December 13, 2011, File No. 2-27612; Exhibit 4 to Form 8-K dated May 15, 2012, File No. 2-27612; Exhibit 4 to Form 8-K dated December 20, 2012, File No. 2-27612; and Exhibit 4 to Form 8-K dated June 5, 2013, File No. 2-27612)
|
|
x
|
|
x
|
*4(b)
|
|
Officer's Certificate of NextEra Energy Capital Holdings, Inc. dated June 6, 2013, creating the 3.625% Debentures, Series due June 15, 2023 (filed as Exhibit 4 to Form 8-K dated June 6, 2013, File No. 1-8841)
|
|
x
|
|
|
10(a)
|
|
Appendix A2 (revised as of April 15, 2013) to the FPL Group, Inc. Supplemental Executive Retirement Plan, amended and restated effective January 1, 2005
|
|
x
|
|
x
|
*10(b)
|
|
NextEra Energy, Inc. 2013 Executive Annual Incentive Plan (filed as Exhibit 10(c) to Form 8-K dated October 11, 2012, File No. 1-8841)
|
|
x
|
|
x
|
10(c)
|
|
April 15, 2013 Consent Under Waiver Letter Dated March 16, 2012 between Lewis Hay, III and NextEra Energy, Inc.
|
|
x
|
|
x
|
10(d)
|
|
May 24, 2013 Second Consent Under Waiver Letter Dated March 16, 2012 between Lewis Hay, III and NextEra Energy, Inc.
|
|
x
|
|
x
|
10(e)
|
|
Executive Retention Employment Agreement between NextEra Energy, Inc. and Deborah H. Caplan dated as of April 23, 2013
|
|
x
|
|
x
|
10(f)
|
|
Consulting Agreement between Florida Power & Light Company and AJO Consulting Services, LLC dated as of June 17, 2013
|
|
x
|
|
x
|
Exhibit
Number
|
|
Description
|
|
NEE
|
|
FPL
|
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:
|
July 31, 2013
|
|
|
|
|
|
|
|
|
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)
|
|
Appendix A2
Last Revised On: April 15, 2013
|
|||||
Name
|
Company
|
Pre-4/1/1997
Participant
|
Class A “Bonus
SERP” Status
|
Double Basic
Credits
|
Double
Transition
Credits
|
CAPLAN, DEBORAH H. *
|
NextEra Energy, Inc
|
|
X
1
|
X
1
|
|
KELLIHER, JOSEPH T. *
|
NextEra Energy, Inc
|
|
X
1
|
X
1
|
|
RODRIGUEZ, ANTONIO *
|
NextEra Energy, Inc
|
X
|
|
|
|
SIEVING, CHARLES E. *
|
NextEra Energy, Inc
|
|
X
1
|
X
1
|
|
SILAGY, ERIC E.
|
Florida Power & Light Company
|
|
X
1
|
X
1
|
|
YEAGER, WILLIAM L. *
|
NextEra Energy, Inc
|
|
X
1
|
X
1
|
|
CUTLER, PAUL I. *
|
NextEra Energy, Inc
|
|
X
1
|
|
|
FROGGATT, CHRIS N. *
|
NextEra Energy, Inc
|
|
X
1
|
|
|
|
|
|
|
|
|
1
The Compensation Committee has expressly identified these items and acknowledged that they are subject to Internal Revenue Code Section 409A. In particular, these items include: (i) the additional deferred compensation provided by the designation of certain officers as Class A Executives, effective on or after January 1, 2006; and (ii) the additional deferred compensation set forth in SERP Amendment #4 to the Prior Plan (meaning amounts deferred by certain senior officers specified by the Compensation Committee who became participants in the SERP on or after April 1, 1997 at the rate of two times the basic credit and, to the extent applicable, the transition credit under the cash balance formula in the SERP for their pensionable earnings on or after January 1, 2006). Importantly, nothing in Amendment #4 to the Prior Plan, the SERP, Compensation Committee resolutions, or any other document shall be construed as subjecting to Code Section 409A any deferrals made under the SERP
prior
to January 1, 2005, except as expressly noted herein.
*Executive Officer of NextEra Energy, Inc.
|
Lewis Hay, III
Chairman
|
|
|
Lewis Hay, III
Chairman
|
|
|
700 Universe Boulevard, Juno Beach, FL 33408
|
|
EXECUTIVE
|
By
|
DEBORAH H. CAPLAN
|
|
Deborah H. Caplan
|
|
|
|
|
|
|
|
|
|
NEXTERA ENERGY, INC.
|
By
|
JAMES L. ROBO
|
|
James L. Robo
|
|
President and Chief Executive Officer
|
AJO
|
Page 1 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 2 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 3 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 4 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 5 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 6 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 7 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 8 of 11
|
DHC
|
Consultant
|
|
FPL
|
If to FPL:
|
Florida Power & Light Company
Attention: Deborah Caplan
700 Universe Boulevard
Juno Beach, FL 33408
|
If to Consultant:
|
AJO Consulting Services, LLC
[Address]
|
AJO
|
Page 9 of 11
|
DHC
|
Consultant
|
|
FPL
|
AJO
|
Page 10 of 11
|
DHC
|
Consultant
|
|
FPL
|
FLORIDA POWER & LIGHT COMPANY
|
|
AJO CONSULTING SERVICES, LLC
|
||
|
|
|
|
|
By:
|
DEBORAH H. CAPLAN
|
|
By:
|
A.J. OLIVERA
|
Name:
|
Deborah H. Caplan
|
|
Date:
|
6/13/2013
|
Title:
|
Executive VP Human Resources & Corporate Services
|
|
|
|
Date:
|
6/13/13
|
|
|
|
|
Page 11 of 11
|
|
|
|
|
1.
|
Storm assistance
|
2.
|
Other projects as requested by Florida Power & Light Company's senior executive team
|
FLORIDA POWER & LIGHT COMPANY
|
|
AJO CONSULTING SERVICES, LLC
|
||
|
|
|
|
|
By:
|
DEBORAH H. CAPLAN
|
|
By:
|
A.J. OLIVERA
|
Name:
|
Deborah H. Caplan
|
|
Date:
|
6/13/2013
|
Title:
|
Executive VP Human Resources & Corporate Services
|
|
|
|
Date:
|
6/13/13
|
|
|
|
|
Six Months Ended
June 30, 2013 |
||
|
(millions of dollars)
|
||
Earnings, as defined:
|
|
||
Income from continuing operations
|
$
|
695
|
|
Income taxes
|
379
|
|
|
Fixed charges included in the determination of net income, as below
|
575
|
|
|
Amortization of capitalized interest
|
16
|
|
|
Distributed income of equity method investees
|
10
|
|
|
Less: Equity in earnings of equity method investees
|
5
|
|
|
Total earnings, as defined
|
$
|
1,670
|
|
|
|
||
Fixed charges, as defined:
|
|
||
Interest expense
|
$
|
537
|
|
Rental interest factor
|
22
|
|
|
Allowance for borrowed funds used during construction
|
16
|
|
|
Fixed charges included in the determination of net income
|
575
|
|
|
Capitalized interest
|
77
|
|
|
Total fixed charges, as defined
|
$
|
652
|
|
|
|
||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
2.56
|
|
(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.
|
|
Six Months Ended
June 30, 2013 |
||
|
(millions of dollars)
|
||
Earnings, as defined:
|
|
||
Net income
|
$
|
679.1
|
|
Income taxes
|
413.5
|
|
|
Fixed charges included in the determination of net income, as below
|
224.3
|
|
|
Total earnings, as defined
|
$
|
1,316.9
|
|
|
|
||
Fixed charges, as defined:
|
|
||
Interest expense
|
$
|
205.5
|
|
Rental interest factor
|
4.8
|
|
|
Allowance for borrowed funds used during construction
|
14.0
|
|
|
Total fixed charges, as defined
|
$
|
224.3
|
|
|
|
||
Ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
5.87
|
|
(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
June 30, 2013
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:
|
July 31, 2013
|
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
June 30, 2013
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:
|
July 31, 2013
|
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
June 30, 2013
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:
|
July 31, 2013
|
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
June 30, 2013
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:
|
July 31, 2013
|
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
June 30, 2013
(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:
|
July 31, 2013
|
|
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
June 30, 2013
(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:
|
July 31, 2013
|
|
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
|
|