November/December Investor Presentation Cautionary Statements And - PowerPoint PPT Presentation

November/December Investor Presentation

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 sold or 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

NextEra Energy is a premier U.S. power company comprised of three strong businesses • $23.5 B market capitalization (1) • 42,588 MW in operation • $53 B in total assets • One of the largest U.S. electric • Successful wholesale generator • Regulated utility in Texas utilities • U.S. leader in renewable • Approximately $800 MM • Vertically integrated, retail rate- generation CREZ transmission line regulated • Assets in 26 states and Canada expected to be brought into • 4.5 MM customer accounts service in 2013 • 18,866 MW in operation • 23,722 MW in operation A growing, diversified and financially strong company 1) Market capitalization as of November 18, 2011; source: FactSet Note: All other data as of December 31, 2010; includes Energy Resources’ natural gas-fired generating assets totaling 2,152 MW, which were sold on November 22,2011, and 550 MW are under contract for sale 3

NextEra Energy is well positioned to capitalize on today’s market opportunities Attractive Investment Opportunity • Visible growth opportunities at all three main businesses • Aligned with fundamental trends driving the industry – Low exposure to new environmental regulation • Underpinned by excellent fundamentals – Superior operating skills – Strong focus on cost and reliability – Very strong credit and liquidity position • Balanced, moderate risk position • Strong track record of adjusted earnings and dividend growth through numerous commodity cycles Attractive + + Visible Growth Operational Financial Investment Opportunities Excellence Strength Opportunity 4

NextEra Energy has realized substantial and profitable growth while diversifying its asset base North American Presence 2011E Adjusted EBITDA Long-Term Contracted 27% FPL Other 52% 4% Hedged 17% Cumulative Capital Deployed ($B) Adjusted EPS (1) CAGR 7.5% $34.7 $4.05 $4.30 $3.84 $28.9 $3.49 $2.41 $2.48 $2.49 $2.63 $3.04 $22.8 $8.2 $10.9 $14.4 $17.5 $6.4 $3.4 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010 1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 5

Our strategic focus on clean generation assets has resulted in one of the lowest emissions profiles among the nation’s top 50 power producers… NextEra Energy 2010 Fuel Mix SO 2 Emissions Rates (MWh) (Lbs/MWh) Hydro 1.0% 16 Solar 0.2% Nuclear 12 Wind 26.4% Coal 11.9% 3.6% 8 NextEra Oil Energy 2.7% 4 Natural Gas 54.2% 0 NO x Emissions Rates CO 2 Emissions Rates (Lbs/MWh) (Lbs/MWh) 4 2,500 2,000 3 NextEra Energy 1,500 NextEra 2 Energy 1,000 1 500 0 0 Source: M.J. Bradley & Associates (2010). "Benchmarking the Top 100 Electric Power Producers in the US.“ NextEra Energy data derived from internal calculations based on actual generation (MWhs) by fuel type for 2010. 6

…which provides attractive upside given the continuing direction of U.S. environmental policy Summary of EPA Rules Announced Coal Plant Retirements (1) (Cumulative MW 000s) 28.0 Status 25.4 26.4 26.7 EPA Rule 23.9 22.1 Cross-State Air Pollution Finalized Rule (CSAPR) 18.5 SO2 NAAQS Finalized 10.2 7.9 Toxins Rule Proposed 4.9 1.8 316(b) Rule Proposed 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ozone NAAQS Revisions Proposed Potential Regulation Implications Regulation of Coal Proposed Combustion Residuals • More demand for renewable generation Industrial Boiler MACT Rule Proposed • Higher power prices GHG NSPS Rule Planning • Tightening reserve margins PM2.5 NAAQS Revisions Planning (fine particulate) • Higher capacity prices Our forecasts do not include any potential upside as a result of EPA rulings, coal plant retirements, or regulation impacts 1) Source: SNL Financial as of October 31, 2011; cumulative coal plant retirement announcements 7

NextEra Energy’s growth opportunities are tangible and weighted primarily toward regulated and long-term contracted opportunities NextEra Energy Growth Outlook • FPL has ~$10.5 - $11.5 B of capital earmarked for deployment through 2014 (1) – Rate base (2) is estimated to grow at an approximate 8.1% annual CAGR from 2011 to 2014 • Energy Resources has significant investment opportunities including a highly visible backlog of clean generation projects – Includes $6.8 B - $7.6 B to be spent through 2014 (3) on solar and wind projects that are already under long-term contract • Lone Star Transmission plans to invest approximately $800 MM in its CREZ transmission line in Texas NextEra Energy plans to add approximately 5,400 MW of capacity by 2014, including only the already-contracted planned investments at Energy Resources 1) 2011-2014 2) Rate base includes retail and wholesale rate base, clause-related, and AFUDC project 3) In 2011-2014; includes Energy Resources’ capital expenditures from consolidated investments as well as its share of capital expenditures from equity method investments. Capital expenditure dollars are categorized by the year in which the cash is expected to be spent and not when projects are expected to be placed in service. The figures 8 exclude the capital investments spent prior to 2011.

• Florida Power & Light is in the midst of the largest development cycle in its history • Estimated 8.1% annual rate base (1) growth from 2011 through 2014 1) Rate base includes retail and wholesale rate base, clause-related, and AFUDC projects 9

FPL is in the largest development cycle in its history, the outcome of which will provide significant overall savings to its customers FPL’s Major Capital Projects Through 2014 Fuel Estimated Approx. Est. PSC In-Service Size (MW) Facility Name Type Cost ($B) Approved Recovery (1) 2011-2013 450 Nuclear uprates Nuclear $2.5 Yes Clause 2013 1,210 Cape Canaveral modernization Gas $1.1 Yes Base 2014 1,210 Riviera Beach modernization Gas $1.3 Yes Base (2) 2009-2013 N/A Energy Smart Florida N/A $0.9 Yes Base Total 2,870 $5.8 Since 2008, FPL has brought online approximately 3,770 MW of generation on time and either on or below budget 1) Cost range estimated to be between $2.3 - $2.5 billion 10 2) Revenue requirement impact of ESF project through 2010 approved as part of the 2010 base rate decision

The proposed Port Everglades modernization, a sister facility to Cape Canaveral and Riviera Beach, is expected to provide significant savings for customers while reducing emissions Port Everglades Modernization Current Port Everglades Plant Modernized Port Everglades Energy Center Capital Cost ($ B) $1.2 Installed Capacity (MW) 1,280 Estimated In-Service Date 2016 FPL filed a petition for determination of need in November 2011 1) Net present value to customers 11

FPL’s investments in new generation improve the system heat rate resulting in substantial fuel savings for customers… FPL’s Fossil System Average Heat Rate (1) 21% efficiency improvement 10,000 9,635 9,000 8,445 Btu per 7,900 kWh 8,000 7,600 7,000 6,000 2001 2006 2011 2016 Actual Actual Projected Projected Investments made from 2001 to 2016 are expected to save customers $1.3 billion in projected fuel savings in 2016 relative to a 2001 baseline 1) The 2001, 2006 and 2011 net heat rates are based on schedules A and E provided to the Florida Public Service Commission; the 2016 net heat rate is based on the most recent evaluations with the Port Everglades 12 Modernization in-service in mid-2016