Earnings Conference Call Fourth Quarter and Full Year 2011 January - PowerPoint PPT Presentation

Earnings Conference Call Fourth Quarter and Full Year 2011 January 27, 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 the after-tax charges resulting from the sale of the five natural gas- fired generating assets in two sale transactions. 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

2011: A mixed year – on balance, positive Disappointments Successes • Outstanding year for Energy • Financial results below Resources’ project backlog expectations – Wind and solar • Excellent progress on major FPL – Growth roughly in line with projects long-term industry averages – West County Energy Center unit 3 • Decline in natural gas prices – Cape Canaveral – Riviera Beach • Lack of action on federal – Port Everglades • Outstanding customer value at FPL renewables policy – Lowest bills in the state – Top quartile reliability – Award-winning customer service – Clean emissions profile 3

FPL will file for rate relief in 2012 FPL 2012 Base Rate Proceeding • Capital investments (averaging $3 B per year between 2011 and 2013) improve system heat rate, lower fuel consumption – Investments benefit customers through lower fuel costs • Test Year Letter filed January 17, 2012 • Estimated $695 MM base rate increase request – $525 MM increase effective January 1, 2013 – $170 MM step-increase effective on Cape Canaveral in-service date • Key drivers: – Impact of accelerated surplus depreciation amortization – Recovery for Cape Canaveral – Reset regulatory ROE to 11.25% with a 0.25% ROE performance adder if FPL has and maintains the lowest customer bill in the state 4

Base rate impacts are expected to be offset by improved system efficiency and lower fuel prices FPL Base Rate Request: Bill Impacts • Base rates estimated to go up $6.80 per month (1) , or 23 cents per day • Total typical residential bill is currently projected to go up about $3.00 per month (1) , or no more than 10 cents per day (2) • Typical residential bills expected to be lower than they were in 2006 (1) For a typical 1,000 kWh residential bill and relative to 2012 5 (2) Based on current projections for fuel pricing and other aspects of the bill

FPL expects new rates to be effective on January 1, 2013 Estimated FPL Rate Proceeding Timeline Late Late Q2 January 1, Q1 Q2 Early Q3 Q3 Q4 2013 Intervenor, File formal Quality of Final New rates Rate staff, and FPL rate request service decision by effective hearings rebuttal (testimony; hearings PSC testimony detailed data expected schedules) 6

FPL’s EPS contributions increased due to investments in the business that benefit customers Florida Power & Light – 2011 Results Full Year Fourth Quarter EPS EPS Net Income Net Income ($ MM) ($ MM ) $1,068 $945 $0.51 $2.55 $216 $2.29 $181 $0.43 2010 2011 2010 2011 2010 2011 2010 2011 7

FPL’s earnings growth was driven primarily by generation and infrastructure investments FPL EPS Contribution Drivers – 2011 ($/share) Fourth Full Quarter Year FPL – 2010 EPS $0.43 $2.29 Drivers: Rate base growth and other $0.06 $0.20 Clause, primarily solar and nuclear uprates $0.02 $0.08 AFUDC $0.00 $0.01 Share dilution $0.00 ($0.03) FPL – 2011 EPS $0.51 $2.55 8

FPL’s customer metrics and the broader Florida economy are improving slowly Customer Characteristics – Fourth 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 -4.4% 40 # of 25 Customers 20 + Underlying Usage and Other 1.2% (000s) 0 -20 = Retail Sales Growth -2.7% 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 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 Q Inactive and 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Florida Population Growth (3) Low-Usage Customers 320 10.0% 310 4% FL Population % Growth Inactive Annual 300 9.5% Accounts Change 290 (%) Actual Actual Estimate 3% 280 9.0% 270 Inactive 260 8.5% 2% Accounts Low-Usage (000s) 250 Customers % of customers using 240 8.0% <200 kWh per month 230 1% (12-month ending) 220 7.5% U.S. Population % Growth 210 0% 200 7.0% 1976 1981 1986 1991 1996 2001 2006 2011 2016 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 2.4% (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

2011 was a difficult year for Energy Resources Energy Resources – 2011 Results Fourth Quarter Full Year GAAP Net Income EPS Net Income EPS ($ MM ) ($ MM) $0.96 $402 $980 $2.37 $774 $1.85 $0.17 $73 2010 2011 2010 2011 2010 2011 2010 2011 $800 $1.93 Adjusted $679 $1.62 $143 $128 $0.34 $0.30 2010 2011 2010 2011 2010 2011 2010 2011 10 Note: See Appendix for reconciliation of adjusted amounts to GAAP amounts

Energy Resources’ full year results were challenged by adverse market conditions, nuclear outages, and fewer MW of CITC projects in 2011 compared to 2010 Energy Resources’ Adjusted EPS Contribution Drivers – 2011 ($/share) Fourth Full Quarter Year NextEra Energy Resources – 2010 Adjusted EPS $0.34 $1.93 Drivers: New investments ($0.03) ($0.06) Existing assets ($0.03) $0.06 Gas infrastructure $0.01 $0.06 Customer supply and trading ($0.01) ($0.22) Other (1) $0.02 ($0.15) NextEra Energy Resources – 2011 Adjusted EPS $0.30 $1.62 (1) Includes write-offs and other adjustments, asset sales, interest expense, differential membership costs, income tax adjustments, general & administrative expenses, share dilution, and rounding Note: See Appendix for reconciliation of adjusted amounts to GAAP amounts 11

NextEra Energy’s 2011 adjusted earnings per share increased 2% year-over-year NextEra Energy Results Fourth Quarter EPS Full-Year 2011 EPS GAAP 2010 2011 Change GAAP 2010 2011 Change FPL $0.43 $0.51 $0.08 FPL $2.29 $2.55 $0.26 Energy Resources $0.17 $0.96 $0.79 Energy Resources $2.37 $1.85 ($0.52) Corporate and Other $0.03 $0.12 $0.09 Corporate and Other $0.08 $0.19 $0.11 Total Total $0.63 $1.59 $0.96 $4.74 $4.59 ($0.15) Adjusted 2010 2011 Change Adjusted 2010 2011 Change FPL $0.43 $0.51 $0.08 FPL $2.29 $2.55 $0.26 Energy Resources $0.34 $0.30 ($0.04) Energy Resources $1.93 $1.62 ($0.31) Corporate and Other $0.03 $0.12 $0.09 Corporate and Other $0.08 $0.22 $0.14 Total Total $0.80 $0.93 $0.13 $4.30 $4.39 $0.09 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 12

Our wind business set several new records in 2011 Wind Production Summary 2007 2008 2009 2010 2011 Effective Capacity (1) (MW) 4,173 5,388 6,493 7,624 8,386 Wind Production (MM MWh) 11.4 15.4 15.8 20.4 24.6 Implied Average Capacity Factor 31% 33% 28% 30% 34% Total Production Eligible for PTCs (MM MWh) 10.5 14.4 14.1 16.2 17.3 Allocated to Investors (MM MWh) 0.1 2.0 1.9 2.5 5.0 % Allocated to Investors 1% 14% 13% 15% 29% Value of PTCs Retained ($ MM) $219 $262 $254 $304 $271 (1) For new wind additions, megawatts have been pro rated based on partial year in-service 13