Earnings Conference Call Third Quarter 2011 November 4, 2011 - PowerPoint PPT Presentation

Earnings Conference Call Third Quarter 2011 November 4, 2011

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 the loss on the gas-fired generation assets currently held for sale, the majority of which relate to the Energy Resources business of NextEra Energy. 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

Florida Power & Light had strong results in the third quarter and is well-positioned for continued growth NextEra Energy Highlights – Third Quarter 2011 • Florida Power & Light – Earnings per share grew approximately 12% over the prior-year comparable quarter – Florida’s economic recovery continues, but progress is slow – The PSC approved recovery of $196 MM, which primarily relates to the cost of the nuclear upgrades – The PSC approved the request for a bid rule exemption for the proposed modernization of Port Everglades facility FPL plans to file a petition for a determination of need later this month – Investments are designed to enable FPL to keep its typical residential customer bill among lowest in state 3

Energy Resources made great strides in growing its significant backlog of tangible projects NextEra Energy Highlights – Third Quarter 2011 • Energy Resources – Entered into approximately 1,000 MW of contracts for new solar and wind projects since the second quarter earnings call – Entered into contracts for two new solar projects Desert Sunlight, a 550-MW PV project in which we have a 50% ownership stake, is expected to be commissioned between 2013 and 2015 McCoy, a 250-MW PV project, is expected to reach full commercial operation by the end of 2016 – Signed additional wind PPAs (1) Currently have PPAs for 1,310 MW of new wind projects to be commissioned in 2011 and 2012 Confident in our plan to grow our wind fleet by 1,400 to 2,000 MW in 2011 and 2012 4 (1) Power Purchase Agreement

NextEra Energy’s adjusted earnings per share declined year- over-year amid a challenging quarter at Energy Resources NextEra Energy EPS Summary (1) – Third Quarter GAAP 2010 2011 Change FPL $0.74 $0.83 $0.09 Energy Resources $0.93 $0.16 $(0.77) Corporate and Other $0.07 $(0.02) $(0.09) Total $1.74 $0.97 $(0.77) 2010 2011 Change Adjusted FPL $0.74 $0.83 $0.09 Energy Resources $0.64 $0.49 $(0.15) Corporate and Other $0.07 $(0.01) $(0.08) Total $1.45 $1.31 $(0.14) (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 5

FPL produced solid earnings growth during the quarter Florida Power & Light Results – Third Quarter Net Income EPS ($ MM) $0.83 $347 $0.74 $308 2010 2011 2010 2011 6

FPL’s earnings per share grew approximately 12% year-over- year, driven primarily by rate base growth and returns on clause-related investments FPL Third Quarter EPS Contribution Drivers $1.00 $0.02 $(0.01) $0.09 $(0.01) $0.83 $0.80 $0.74 $0.60 $0.40 $0.20 $0.00 Q3 2010 EPS Rate base Clause, AFUDC Share dilution Q3 2011 EPS growth and primarily solar other and nuclear uprates 7

This illustrative example shows the potential surplus depreciation amortization over the next couple of years Surplus Depreciation Amortization Illustrative Example $MM 2010 2011 2012 2013 (3) Total Available for Year $267 $530 $592 - $612 $180 - $220 Less Amount Used/Projected (1) ($4) ($160 - $180) ($510 - $530) Amount Available for Future Years (2) $263 $350 - $370 $62 - $102 At the end of 2012, we estimate approximately $180 MM - $220 MM of surplus depreciation will remain of the $895 MM determined in the last rate case (1) Actual for 2010; 2011 and 2012 figures are estimates of surplus depreciation amortization to be recorded to reach an 11% retail regulatory ROE. FPL's retail regulatory return on equity expectations assume, among other things: normal weather and operating conditions; no further significant decline in the Florida economy; and access to capital at reasonable cost and terms. Please see the cautionary statements in the Appendix to this presentation for a list of the risk factors that may affect future results, including FPL’s retail regulatory ROE. (2) Derived by taking the Total Available for Year and subtracting the Amount Used/Projected 8 (3) Comprised of amount carried forward from 2012 plus $119 million not covered by the settlement agreement

Amid the continuing economic recovery, key customer metrics are mixed Customer Characteristics – Third Quarter 2011 Retail kWh Sales (1) Customer Growth (2) (Change vs. prior-year quarter) (Change vs. previous year) 100 Customer Growth 0.5% 80 60 + Usage Due to Weather -1.8% 40 # of 24,000 Customers 20 + Underlying Usage and Other -1.1% (000s) 0 -20 = Retail Sales Growth -2.4% 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' - - - - - - - - - - - - - - - - - - - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Inactive and 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Florida Population Growth (3) Low-Usage Customers 320 10.0% 310 4% 4% FL Population % Growth Inactive Annual 300 9.5% Accounts Change 290 (%) Actual Actual Estimate 3% 3% 280 9.0% 270 Inactive 260 8.5% Accounts 2% 2% Low-Usage (000s) 250 Customers % of customers using 240 8.0% <200 kWh per month 230 (12-month ending) 1% 1% 220 7.5% U.S. Population % Growth 210 0% 0% 200 7.0% 1976 1976 1981 1981 1986 1986 1991 1991 1996 1996 2001 2001 2006 2006 2011 2011 2016 2016 2021 2021 01/07 01/08 01/09 01/10 01/11 (1) Retail sales results in the table exclude the impact of FPL’s change from a fiscal month to a calendar month; actual retail sales declined 0.7% (2) Based on average number of customer accounts for the quarter (3) Florida population data and forecast source: the Office of Economic & Demographic Research of the state legislature 9 of Florida; U.S. population data and forecast source: IHS Global Insight

Many of Florida’s economic metrics have shown steady improvement since 2010 Florida Economy Retail Sales Index (1) Tourism Taxable Sales (1) December 1999 = 100 12-month moving sum ($ B) 140 68 135 130 64 125 120 60 115 110 56 105 52 100 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Consumer Confidence (2) Sales of Existing Homes (3) 1966 = 100 Existing homes sold and 12-month moving avg. 100 30,000 95 25,000 90 85 20,000 80 75 15,000 70 10,000 65 60 5,000 55 50 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 (1) Office of Economic and Demographic Research of the state legislature of Florida (2) Bureau of Economic and Business Research of the University of Florida 10 (3) Florida Realtors

Energy Resources’ adjusted earnings declined primarily as a result of challenging conditions in its customer supply and proprietary trading businesses Energy Resources’ Results (1) – Third Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $386 $0.93 $267 $0.64 $204 $0.49 $67 $0.16 2010 2011 2010 2011 2010 2011 2010 2011 11 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts.

Energy Resources’ adjusted EPS were down $0.15 in the quarter Energy Resources Third Quarter Adjusted EPS (1) Contribution Drivers $0.80 $0.64 $(0.06) $0.05 $(0.13) $0.00 $0.60 $(0.01) $0.49 $0.40 $0.20 $0.00 Q3 2010 New Existing Gas Customer Supply Corporate Q3 2011 (2) (3) Adjusted EPS Investments Assets Infrastructure & Trading & Other Adjusted EPS (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 12 expenses, share dilution, and rounding