Earnings Conference Call First Quarter 2012 April 25, 2012 - PowerPoint PPT Presentation

Earnings Conference Call First Quarter 2012 April 25, 2012

Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our Securities and Exchange Commission (SEC) filings. Non-GAAP Financial Information This presentation refers to adjusted earnings, which are not financial measurements prepared in accordance with GAAP. Adjusted earnings, as defined by NextEra Energy, represent net income before the mark-to-market effects of non-qualifying hedges, the net effect of other than temporary impairments (OTTI) on certain investments, and other adjustments, including the after-tax charges resulting from the sale of the five natural gas-fired generating assets in two sale transactions in 2011. Quantitative reconciliations of historical adjusted earnings to net income, which is the most comparable GAAP measure to adjusted earnings, are included in the attached Appendix. Prospective adjusted earnings amounts cannot be reconciled to net income because net income includes the mark-to-market effects of non-qualifying hedges and OTTI on certain investments, neither of which can be determined at this time. Adjusted earnings does not represent a substitute for net income, as prepared in accordance with GAAP. 2

Overview: Solid performance; on track to meet expectations 2012 First Quarter Highlights Solid financial results, consistent with expectations • – FPL regulatory ROE approximately 11%; investment on track – Energy Resources roughly flat; challenging environment Florida economy continues to improve – slowly • FPL rate case filed March 19, 2012 • Major initiatives on track: • – Investments to further improve efficiency at FPL – Record renewables backlog at Energy Resources – Construction program at Lone Star Transmission No change to earnings expectations through 2014 • 3

FPL produced solid earnings growth during the quarter due to investments that benefited customers Florida Power & Light Results – First Quarter Net Income EPS ($ MM) $0.58 $239 $0.49 $205 2011 2012 2011 2012 4

FPL’s earnings per share grew approximately 9 cents quarter- over-quarter, driven primarily by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested (1) First $B Quarter $23.8 $25.0 FPL – 2011 EPS $0.49 $20.6 Drivers: $20.0 New investment growth and other $0.07 $15.0 Clause, primarily solar and $0.02 nuclear uprates $10.0 FPL – 2012 EPS $0.58 $5.0 $0.0 March 2011 March 2012 Retail Rate Base Other (1) Average over the quarter; includes retail rate base, wholesale rate base, clause-related 5 investments, and AFUDC projects

Trends in employment and housing affordability continue to be positive Florida Economy Florida Unemployment Rate (1) Tourism Taxable Sales (2) $B (12 month moving sum) 12% $68 11% $66 10% 9% $64 8% 7% $62 6% $60 5% 4% $58 3% 2% $56 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Florida Consumer Confidence (3) Housing Affordability Index (4) 95 90% 90 80% 85 70% 60% 80 50% 75 40% 70 30% National 65 20% Cape Coral-Fort Myers 60 Miami-Miami Beach-Kendall 10% Deltona-Daytona Beach-Ormond Beach 55 0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 2001 2003 2005 2007 2009 2011 (1) Source: Bureau of Labor Statistics, through March 2012 6 (2) Source: Office of Economic and Demographic Research, through January 2012 (3) Source: UF Bureau of Economic and Business Research, through March 2012 (4) NAHB/Wells Fargo. Housing affordability for Florida metropolitan areas and U.S.; based on % of new and existing homes that are affordable to those making the median income in the given area

FPL’s volume metrics continue to improve slowly Customer Characteristics – First Quarter 2012 Retail kWh Sales (1) Customer Growth (2) (Change vs. prior-year quarter) (Change vs. previous year) Customer Growth 0.6% 100 80 + Usage Due to Weather 0.6% # of 60 Customers + Additional Leap Year Day 1.3% 27 40 (000s) + Underlying Usage Growth, mix and Other 1.3% 20 0 = Retail Sales Growth 3.8% -20 Inactive and 1Q- '07 1Q- '08 1Q- '09 1Q- '10 1Q- '11 1Q- '12 Low-Usage Customers New Service Accounts (3) 320 10.0% 10,000 310 Inactive 300 9.5% Accounts 8,000 290 280 9.0% 6,000 270 Inactive 260 8.5% Accounts Low-Usage 250 4,000 (000s) Customers % of customers using 240 8.0% <200 kWh per month (12- 230 month ending) 2,000 220 7.5% 210 0 200 7.0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 01/07 01/08 01/09 01/10 01/11 01/12 (1) Retail sales results in the table exclude the impact of FPL’s change from a fiscal month to a calendar month; 7 actual retail sales increased 4.0% (2) Based on average number of customer accounts for the quarter (3) FPL data, through March 2012

FPL submitted its formal base rate filing on March 19 th FPL Base Rate Request Summary of request: • – $516.5mm base revenue increase effective January 2, 2013 – $173.9mm step increase coinciding with COD of the Cape Canaveral modernization – Three major drivers: Cape Canaveral cost recovery Less surplus depreciation available to amortize Re-set ROE to 11.25% plus 25 bps performance adder Late January 2, March 19 June Q4 July August 2013 Intervenor, Final Technical File formal Quality of New rates staff, and decision by rate request hearings service effective FPL rebuttal PSC (testimony; hearings testimony expected detailed data schedules) 8

FPL’s base rate increase is partially offset by reductions in the fuel portion of the bill FPL Base Rate Request: Bill Impact (1) Base Portion of Bill Total Bill $100 $100 $90 $90 $80 $80 $70 $70 $60 $60 $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 $0 $0 (2) (2) 1,000 kWh Bill Low Usage 1,000 kWh Bill Low Usage 2012 2013 2012 2013 (1) In process of updating bill impact analysis, which is expected to result in a further decrease in the 9 total bill impact (2) 530 kWh bill, which is usage at the 25 th percentile of residential customers

Energy Resources’ adjusted earnings declined two cents quarter-over-quarter Energy Resources Results (1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $221 $0.53 $189 $182 $0.46 $0.44 $65 $0.16 2011 2012 2011 2012 2011 2012 2011 2012 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 10

Energy Resources’ adjusted earnings per share were down $0.02 in the quarter Energy Resources First Quarter Adjusted EPS (1) Contribution Drivers $0.80 $0.07 ($0.11) $0.60 $0.07 $(0.02) $(0.03) $0.46 $0.44 $0.40 $0.20 $0.00 Q1 2011 New Gas Existing Customer Corporate Q1 2012 (3) Adjusted EPS Investments Infrastructure Investment Supply & & Other Adjusted EPS (2) Trading 11 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts (2) Includes customer supply businesses and proprietary power and gas trading (3) Includes interest expense, differential membership costs, income tax adjustments, general & administrative expenses, share accretion, and rounding

Energy Resources continues to make good progress in developing its record backlog of renewable projects NextEra Energy Resources: Development Highlights 177 MW of U.S. wind COD in Q1 • Acquired 40 MW of Canadian solar photovoltaic in Q1 • Good progress on development of backlog: • – Expect approximately 1,300 MW of U.S. wind in 2012 – Approximately 600 MW of Canadian wind; anticipated CODs 2012-2015 – Approximately 900 MW of additional solar; anticipated CODs 2012-2016 On track to meet all major schedule commitments 12

NextEra Energy’s adjusted earnings per share increased eight cents quarter-over-quarter NextEra Energy EPS Summary (1) – First Quarter GAAP 2011 2012 Change FPL $0.49 $0.58 $0.09 Energy Resources $0.16 $0.53 $0.37 Corporate and Other ($0.01) $0.00 $0.01 Total $0.64 $1.11 $0.47 2011 2012 Change Adjusted FPL $0.49 $0.58 $0.09 Energy Resources $0.46 $0.44 ($0.02) Corporate and Other ($0.01) $0.00 $0.01 Total $0.94 $1.02 $0.08 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 13