Exhibit 99
 | |
NextEra Energy, Inc. Media Line: (561) 694-4442 Nov. 1, 2013 FOR IMMEDIATE RELEASE | |
NextEra Energy announces third-quarter earnings for 2013
| • | Florida Power & Light Company continued to invest in the business to provide long-term customer benefits |
| • | NextEra Energy Resources results benefitted from the addition of new contracted renewables projects |
JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2013 third-quarter net income on a GAAP basis of $698 million, or $1.64 per share, compared with $415 million, or $0.98 per share, in the third quarter of 2012. On an adjusted basis, NextEra Energy’s earnings were $607 million, or $1.43 per share, compared with $532 million, or $1.26 per share, in the third quarter of 2012. Adjusted earnings exclude the mark-to-market effects of non-qualifying hedges, as well as the net effect of other than temporary impairments (OTTI) on certain investments, both of which relate to the business of NextEra Energy Resources, LLC and its affiliated entities, and operating results from the Spain solar project.
NextEra Energy’s management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and as an input in determining whether performance goals are met for performance-based compensation under the company’s employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. NextEra Energy management believes that adjusted earnings provide a more meaningful representation of NextEra Energy’s fundamental earnings power. The attachments to this news release include a reconciliation of historical adjusted earnings to net income, which is the most directly comparable GAAP measure.
“NextEra Energy delivered strong results in the third quarter as our company continued to execute against our development program as well as our ongoing initiative to improve productivity and take costs out of the business,” said NextEra Energy President and CEO James L. Robo. “At Florida Power & Light Company, increased investment in the business continues to improve reliability, reduce emissions, lower fuel costs, and enhance an already excellent value proposition for our customers. At NextEra Energy Resources, we placed into service an additional new contracted renewable project that strengthens our position as North America’s largest generator of renewable energy from the wind and sun.”
Florida Power & Light Company
NextEra Energy’s principal rate-regulated utility subsidiary, Florida Power & Light Company, reported third-quarter net income of $422 million, or $0.99 per share, compared with $392 million, or $0.93 per share, for the prior-year quarter.
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The main driver of FPL’s growth was continued investment in the business, which enhances a customer value proposition that includes high reliability, award-winning customer service, a clean emissions profile and the lowest typical residential customer bill in Florida. Average regulatory capital employed for the quarter grew $2.4 billion, or approximately 9.3 percent, compared to the third quarter of 2012. FPL averaged approximately 53,000 more customers than it had in the prior-year comparable quarter. Retail sales decreased moderately versus the prior-year quarter due to mild weather and lower underlying usage.
FPL continues to execute against its development objectives. Both the Riviera Beach and Port Everglades power plant modernizations remain on schedule with expected in-service dates by mid-2014 and mid-2016, respectively.
Last month, the Florida Public Service Commission (FPSC) approved FPL’s 2014 nuclear cost recovery clause request, including recovery of the extended power uprate investment completed earlier in 2013. The largest U.S. nuclear upgrade investment in recent history added more than 500 megawatts (MW) of clean, zero-emission generation to the FPL fleet.
The FPSC last month also approved FPL’s new natural gas transportation capacity contracts with Sabal Trail Transmission and the Florida Southeast Connection. Contingent upon receiving necessary Federal Energy Regulatory Commission approvals, the company expects construction of the proposed interstate pipeline system to begin in 2016 and for operations to commence in 2017.
FPL also continues to pursue FPSC approval for two additional initiatives to improve reliability and reduce emissions. FPL has filed a plan with the FPSC to accelerate its existing storm hardening program through incremental investments of approximately $400 million through 2016 to continue strengthening its infrastructure against tropical storms and hurricanes. In addition, FPL’s annual environmental cost recovery clause filing with the FPSC in July included a request for a program of approximately $820 million to upgrade its peaking capacity to comply with new Environmental Protection Agency regulations.
NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported third-quarter net income on a GAAP basis of $281 million, or $0.66 per share, compared with $44 million, or $0.10 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources’ earnings were $190 million, or $0.45 per share, compared with $162 million, or $0.38 per share, in the third quarter of 2012.
NextEra Energy Resources’ adjusted earnings per share were driven by contributions from new contracted renewables projects that were added to the portfolio, which increased earnings per share by 8 cents versus the comparable prior-year period. Increased production in its gas infrastructure business added 2 cents year-over-year. Lower contributions from the customer supply and trading business negatively impacted results by 3 cents compared to the comparable prior-year quarter.
Since the prior-quarter earnings release, NextEra Energy Resources signed a long-term power purchase agreement (PPA) for a new U.S. wind project of approximately 200 MW, bringing its total new contracted U.S. wind development portfolio to approximately 1,175 MW. In the third quarter, the business brought into service a 125-MW Canadian wind project. The business expects additional Canadian wind projects of approximately 475 MW to enter into service in 2014 and 2015.
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NextEra Energy Resources continues to execute on its backlog of approximately 800 MW of contracted U.S. solar projects, of which about 300 MW are expected to come into service in 2013, with the balance expected to come into service by the end of 2016. In addition, the business recently entered into an agreement to purchase from First Solar, Inc. a project of approximately 250 MW that will operate under a 20-year PPA. Together with the 40 MW of projects announced earlier this year, this project brings the portfolio of incremental solar projects to about 290 MW and the total development portfolio of U.S. contracted solar projects to approximately 1,100 MW.
Corporate and Other
Corporate and Other negatively impacted earnings per share by 1 cent, compared with a negative impact of 5 cents in the comparable prior-year quarter, on both an adjusted and GAAP basis.
Outlook
NextEra Energy expects adjusted earnings per share for 2013 to be in the upper half of the previously indicated range of $4.70 to $5.00. Adjusted earnings per share for 2014 are expected to be in the range of $5.05 to $5.45. The company continues to expect full-year adjusted earnings per share to increase at a compound annual growth rate of 5 percent to 7 percent through 2016, from a 2012 base.
NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, as well as net OTTI losses on securities held in NextEra Energy Resources’ nuclear decommissioning funds, none of which can be determined at this time, and operating results from the Spain solar project. For 2013, adjusted earnings expectations also exclude the gain on the sale of the Maine hydropower assets, a charge associated with the decision to sell merchant fossil assets in Maine, and charges associated with an impairment on the Spain solar project. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; supportive commodity markets; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; access to capital at reasonable cost and terms; no acquisitions or divestitures; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.
As previously announced, NextEra Energy’s third-quarter earnings conference call is scheduled for 9 a.m. ET on Nov. 1, 2013. The webcast is available on NextEra Energy’s website by accessing the following link: www.NextEraEnergy.com/investors. The slides and earnings release accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors beginning at 7:30 a.m. ET today. For those unable to listen to the live webcast, a replay will be available for 90 days by accessing the same link as listed above. | ||||
This news release should be read in conjunction with the attached unaudited financial information.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $14.3 billion, more than 42,000 megawatts of generating capacity, and nearly 15,000 employees in 26 states and Canada as of year-end 2012. Headquartered in Juno Beach, Fla., NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.6 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
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Cautionary Statements and Risk Factors That May Affect Future Results
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “will result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “aim,” “potential,” “projection,” “forecast,” “predict,” “goals,” “target,” “outlook,” “should,” “would” or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL 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; impact of political, regulatory and economic factors on regulatory decisions important to NextEra Energy and FPL; risks of disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions to or elimination of governmental incentives that support renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources); impact of new or revised laws, regulations or interpretations or other regulatory initiatives on NextEra Energy and FPL; effect on NextEra Energy and FPL of potential regulatory action to broaden the scope of regulation of over-the-counter (OTC) financial derivatives and to apply such regulation to NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations; effect on NextEra Energy and FPL of changes in tax laws and in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability 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; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; risks associated with threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; risk of lack of availability of adequate insurance coverage for protection of NextEra Energy and FPL against significant losses; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's hedging and trading procedures and associated risk management tools to protect against significant losses; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; risks to NextEra Energy and FPL of failure of counterparties to perform under derivative contracts or of requirement for NextEra Energy and FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's and FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; increasing costs of health care plans; lack of a qualified workforce or the loss or retirement of key employees; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions; environmental, health and financial risks associated with NextEra Energy's and FPL's ownership of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; liability of NextEra Energy and FPL for increased nuclear licensing or
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compliance costs resulting from hazards posed to their owned nuclear generation facilities; risks associated with outages of NextEra Energy's and FPL's owned nuclear units; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; risk of impairment of NextEra Energy's and FPL's liquidity from inability of creditors to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; and effect of disruptions, uncertainty or volatility in the credit and capital markets of the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2012 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
| Preliminary | ||||||||||||||
| Three Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||
| Operating Revenues | $ | 3,020 | $ | 1,281 | $ | 93 | $ | 4,394 | ||||||
| Operating Expenses | ||||||||||||||
| Fuel, purchased power and interchange | 1,141 | 280 | 17 | 1,438 | ||||||||||
| Other operations and maintenance | 443 | 345 | 30 | 818 | ||||||||||
| Impairment charge | — | — | — | — | ||||||||||
| Depreciation and amortization | 351 | 242 | 12 | 605 | ||||||||||
| Taxes other than income taxes and other | 307 | 37 | 4 | 348 | ||||||||||
| Total operating expenses | 2,242 | 904 | 63 | 3,209 | ||||||||||
| Operating Income (Loss) | 778 | 377 | 30 | 1,185 | ||||||||||
| Other Income (Deductions) | ||||||||||||||
| Interest expense | (105 | ) | (136 | ) | (47 | ) | (288 | ) | ||||||
| Benefits associated with differential membership interests - net | — | 37 | — | 37 | ||||||||||
| Allowance for equity funds used during construction | 12 | — | — | 12 | ||||||||||
| Interest income | 1 | 6 | 13 | 20 | ||||||||||
| Gains on disposal of assets - net | — | 20 | — | 20 | ||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (2 | ) | — | (2 | ) | ||||||||
| Other - net | (1 | ) | 26 | (14 | ) | 11 | ||||||||
| Total other income (deductions) - net | (93 | ) | (49 | ) | (48 | ) | (190 | ) | ||||||
| Income (Loss) from Continuing Operations before Income Taxes | 685 | 328 | (18 | ) | 995 | |||||||||
| Income Tax Expense (Benefit) | 263 | 47 | (13 | ) | 297 | |||||||||
| Income (Loss) from Continuing Operations | 422 | 281 | (5 | ) | 698 | |||||||||
| Net gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||
| Net Income (Loss) | $ | 422 | $ | 281 | $ | (5 | ) | $ | 698 | |||||
| Reconciliation of Net Income (Loss) to Adjusted Earnings: | ||||||||||||||
| Net Income (Loss) | $ | 422 | $ | 281 | $ | (5 | ) | $ | 698 | |||||
| Adjustments, net of income taxes: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | (76 | ) | — | (76 | ) | ||||||||
| (Income) loss from other than temporary impairments - net | — | — | — | — | ||||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | (15 | ) | — | (15 | ) | ||||||||
| Adjusted Earnings | $ | 422 | $ | 190 | $ | (5 | ) | $ | 607 | |||||
| Earnings Per Share (assuming dilution) | $ | 0.99 | $ | 0.66 | $ | (0.01 | ) | $ | 1.64 | |||||
| Adjustments: | ||||||||||||||
| Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | (0.18 | ) | — | (0.18 | ) | ||||||||
| (Income) loss from other than temporary impairments - net | — | — | — | — | ||||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | (0.03 | ) | — | (0.03 | ) | ||||||||
| Adjusted Earnings (Loss) Per Share | $ | 0.99 | $ | 0.45 | $ | (0.01 | ) | $ | 1.43 | |||||
| Weighted-average shares outstanding (assuming dilution) | 427 | |||||||||||||
In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.
For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
| Preliminary | ||||||||||||||
| Three Months Ended September 30, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||
| Operating Revenues | $ | 2,975 | $ | 808 | $ | 60 | $ | 3,843 | ||||||
| Operating Expenses | ||||||||||||||
| Fuel, purchased power and interchange | 1,280 | 234 | 12 | 1,526 | ||||||||||
| Other operations and maintenance | 427 | 322 | 27 | 776 | ||||||||||
| Impairment charge | — | — | — | — | ||||||||||
| Depreciation and amortization | 254 | 203 | 10 | 467 | ||||||||||
| Taxes other than income taxes and other | 295 | 34 | 3 | 332 | ||||||||||
| Total operating expenses | 2,256 | 793 | 52 | 3,101 | ||||||||||
| Operating Income (Loss) | 719 | 15 | 8 | 742 | ||||||||||
| Other Income (Deductions) | ||||||||||||||
| Interest expense | (104 | ) | (116 | ) | (39 | ) | (259 | ) | ||||||
| Benefits associated with differential membership interests - net | — | 7 | — | 7 | ||||||||||
| Allowance for equity funds used during construction | 14 | — | 7 | 21 | ||||||||||
| Interest income | (1 | ) | 4 | 17 | 20 | |||||||||
| Gains on disposal of assets - net | — | 53 | — | 53 | ||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (4 | ) | — | (4 | ) | ||||||||
| Other - net | 1 | 24 | (36 | ) | (11 | ) | ||||||||
| Total other income (deductions) - net | (90 | ) | (32 | ) | (51 | ) | (173 | ) | ||||||
| Income (Loss) from Continuing Operations before Income Taxes | 629 | (17 | ) | (43 | ) | 569 | ||||||||
| Income Tax Expense (Benefit) | 237 | (61 | ) | (22 | ) | 154 | ||||||||
| Income (Loss) from Continuing Operations | 392 | 44 | (21 | ) | 415 | |||||||||
| Net gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||
| Net Income (Loss) | $ | 392 | $ | 44 | $ | (21 | ) | $ | 415 | |||||
| Reconciliation of Net Income (Loss) to Adjusted Earnings: | ||||||||||||||
| Net Income (Loss) | $ | 392 | $ | 44 | $ | (21 | ) | $ | 415 | |||||
| Adjustments, net of income taxes: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | 131 | (1 | ) | 130 | |||||||||
| (Income) loss from other than temporary impairments - net | — | (13 | ) | — | (13 | ) | ||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | — | — | — | ||||||||||
| Adjusted Earnings | $ | 392 | $ | 162 | $ | (22 | ) | $ | 532 | |||||
| Earnings Per Share (assuming dilution) | $ | 0.93 | $ | 0.10 | $ | (0.05 | ) | $ | 0.98 | |||||
| Adjustments: | ||||||||||||||
| Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | 0.31 | — | 0.31 | ||||||||||
| (Income) loss from other than temporary impairments - net | — | (0.03 | ) | — | (0.03 | ) | ||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | — | — | — | ||||||||||
| Adjusted Earnings (Loss) Per Share | $ | 0.93 | $ | 0.38 | $ | (0.05 | ) | $ | 1.26 | |||||
| Weighted-average shares outstanding (assuming dilution) | 422 | |||||||||||||
In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.
For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
| Preliminary | ||||||||||||||
| Nine Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||
| Operating Revenues | $ | 7,905 | $ | 3,343 | $ | 258 | $ | 11,506 | ||||||
| Operating Expenses | ||||||||||||||
| Fuel, purchased power and interchange | 2,979 | 734 | 53 | 3,766 | ||||||||||
| Other operations and maintenance | 1,254 | 1,001 | 83 | 2,338 | ||||||||||
| Impairment charge | — | 300 | — | 300 | ||||||||||
| Depreciation and amortization | 780 | 704 | 39 | 1,523 | ||||||||||
| Taxes other than income taxes and other | 847 | 121 | 10 | 978 | ||||||||||
| Total operating expenses | 5,860 | 2,860 | 185 | 8,905 | ||||||||||
| Operating Income (Loss) | 2,045 | 483 | 73 | 2,601 | ||||||||||
| Other Income (Deductions) | ||||||||||||||
| Interest expense | (310 | ) | (374 | ) | (141 | ) | (825 | ) | ||||||
| Benefits associated with differential membership interests - net | — | 119 | — | 119 | ||||||||||
| Allowance for equity funds used during construction | 42 | — | 8 | 50 | ||||||||||
| Interest income | 3 | 15 | 40 | 58 | ||||||||||
| Gains on disposal of assets - net | — | 40 | — | 40 | ||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (10 | ) | — | (10 | ) | ||||||||
| Other - net | (2 | ) | 52 | (13 | ) | 37 | ||||||||
| Total other income (deductions) - net | (267 | ) | (158 | ) | (106 | ) | (531 | ) | ||||||
| Income (Loss) from Continuing Operations before Income Taxes | 1,778 | 325 | (33 | ) | 2,070 | |||||||||
| Income Tax Expense (Benefit) | 677 | 30 | (30 | ) | 677 | |||||||||
| Income (Loss) from Continuing Operations | 1,101 | 295 | (3 | ) | 1,393 | |||||||||
| Net gain from Discontinued Operations, net of Income Taxes | — | 175 | 13 | 188 | ||||||||||
| Net Income (Loss) | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | ||||||
| Reconciliation of Net Income (Loss) to Adjusted Earnings: | ||||||||||||||
| Net Income (Loss) | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | ||||||
| Adjustments, net of income taxes: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | (15 | ) | — | (15 | ) | ||||||||
| (Income) loss from other than temporary impairments - net | — | (1 | ) | — | (1 | ) | ||||||||
| Net gain from discontinued operations | — | (175 | ) | (13 | ) | (188 | ) | |||||||
| Impairment charge and valuation allowance | — | 342 | — | 342 | ||||||||||
| Operating results of Spain solar projects | — | (15 | ) | — | (15 | ) | ||||||||
| Adjusted Earnings | $ | 1,101 | $ | 606 | $ | (3 | ) | $ | 1,704 | |||||
| Earnings Per Share (assuming dilution) | $ | 2.59 | $ | 1.11 | $ | 0.02 | $ | 3.72 | ||||||
| Adjustments: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non- qualifying hedges | — | (0.04 | ) | — | (0.04 | ) | ||||||||
| (Income) loss from other than temporary impairments - net | — | — | — | — | ||||||||||
| Net gain from discontinued operations | — | (0.41 | ) | (0.03 | ) | (0.44 | ) | |||||||
| Impairment charge and valuation allowance | — | 0.80 | — | 0.80 | ||||||||||
| Operating results of Spain solar projects | — | (0.03 | ) | — | (0.03 | ) | ||||||||
| Adjusted Earnings (Loss) Per Share | $ | 2.59 | $ | 1.43 | $ | (0.01 | ) | $ | 4.01 | |||||
| Weighted-average shares outstanding (assuming dilution) | 425 | |||||||||||||
In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.
For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
| Preliminary | ||||||||||||||
| Nine Months Ended September 30, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||
| Operating Revenues | $ | 7,778 | $ | 2,929 | $ | 174 | $ | 10,881 | ||||||
| Operating Expenses | ||||||||||||||
| Fuel, purchased power and interchange | 3,301 | 605 | 37 | 3,943 | ||||||||||
| Other operations and maintenance | 1,305 | 966 | 76 | 2,347 | ||||||||||
| Impairment charge | — | — | — | — | ||||||||||
| Depreciation and amortization | 496 | 595 | 30 | 1,121 | ||||||||||
| Taxes other than income taxes and other | 814 | 105 | 6 | 925 | ||||||||||
| Total operating expenses | 5,916 | 2,271 | 149 | 8,336 | ||||||||||
| Operating Income (Loss) | 1,862 | 658 | 25 | 2,545 | ||||||||||
| Other Income (Deductions) | ||||||||||||||
| Interest expense | (314 | ) | (370 | ) | (111 | ) | (795 | ) | ||||||
| Benefits associated with differential membership interests - net | — | 70 | — | 70 | ||||||||||
| Allowance for equity funds used during construction | 36 | — | 16 | 52 | ||||||||||
| Interest income | 2 | 16 | 44 | 62 | ||||||||||
| Gains on disposal of assets - net | — | 120 | — | 120 | ||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (11 | ) | — | (11 | ) | ||||||||
| Other - net | (2 | ) | 36 | (42 | ) | (8 | ) | |||||||
| Total other income (deductions) - net | (278 | ) | (139 | ) | (93 | ) | (510 | ) | ||||||
| Income (Loss) from Continuing Operations before Income Taxes | 1,584 | 519 | (68 | ) | 2,035 | |||||||||
| Income Tax Expense (Benefit) | 600 | 3 | (50 | ) | 553 | |||||||||
| Income (Loss) from Continuing Operations | 984 | 516 | (18 | ) | 1,482 | |||||||||
| Net gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||
| Net Income (Loss) | $ | 984 | $ | 516 | $ | (18 | ) | $ | 1,482 | |||||
| Reconciliation of Net Income (Loss) to Adjusted Earnings: | ||||||||||||||
| Net Income (Loss) | $ | 984 | $ | 516 | $ | (18 | ) | $ | 1,482 | |||||
| Adjustments, net of income taxes: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | 31 | (3 | ) | 28 | |||||||||
| (Income) loss from other than temporary impairment - net | — | (30 | ) | — | (30 | ) | ||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | — | — | — | ||||||||||
| Adjusted Earnings | $ | 984 | $ | 517 | $ | (21 | ) | $ | 1,480 | |||||
| Earnings Per Share (assuming dilution) | $ | 2.35 | $ | 1.23 | $ | (0.03 | ) | $ | 3.55 | |||||
| Adjustments: | ||||||||||||||
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges | — | 0.08 | (0.01 | ) | 0.07 | |||||||||
| (Income) loss from other than temporary impairments - net | — | (0.07 | ) | — | (0.07 | ) | ||||||||
| Net gain from discontinued operations | — | — | — | — | ||||||||||
| Impairment charge and valuation allowance | — | — | — | — | ||||||||||
| Operating results of Spain solar projects | — | — | — | — | ||||||||||
| Adjusted Earnings (Loss) Per Share | $ | 2.35 | $ | 1.24 | $ | (0.04 | ) | $ | 3.55 | |||||
| Weighted-average shares outstanding (assuming dilution) | 418 | |||||||||||||
In the fourth quarter of 2012, benefits associated with differential membership interests - net have been reclassified from operating expenses to other income (deductions) to be comparable with the presentation of other financing costs. Prior year amounts have been restated consistent with the current year presentation.
For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
9
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
| Preliminary | |||||||||||||
| September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Property, Plant and Equipment | |||||||||||||
| Electric plant in service and other property | $ | 36,472 | $ | 23,467 | $ | 1,416 | $ | 61,355 | |||||
| Nuclear fuel | 1,195 | 742 | 1 | 1,938 | |||||||||
| Construction work in progress | 1,718 | 2,816 | 28 | 4,562 | |||||||||
| Less accumulated depreciation and amortization | (10,885 | ) | (5,257 | ) | (314 | ) | (16,456 | ) | |||||
| Total property, plant and equipment - net | 28,500 | 21,768 | 1,131 | 51,399 | |||||||||
| Current Assets | |||||||||||||
| Cash and cash equivalents | 54 | 361 | 143 | 558 | |||||||||
| Customer receivables, net of allowances | 992 | 850 | 46 | 1,888 | |||||||||
| Other receivables | 152 | 245 | (44 | ) | 353 | ||||||||
| Materials, supplies and fossil fuel inventory | 757 | 381 | 4 | 1,142 | |||||||||
| Regulatory assets: | |||||||||||||
| Deferred clause and franchise expenses | 124 | — | — | 124 | |||||||||
| Other | 158 | — | 12 | 170 | |||||||||
| Derivatives | 2 | 411 | 28 | 441 | |||||||||
| Deferred income taxes | 34 | 11 | (37 | ) | 8 | ||||||||
| Assets held for sale | — | — | — | — | |||||||||
| Other | 115 | 660 | 13 | 788 | |||||||||
| Total current assets | 2,388 | 2,919 | 165 | 5,472 | |||||||||
| Other Assets | |||||||||||||
| Special use funds | 3,155 | 1,419 | — | 4,574 | |||||||||
| Other investments | 4 | 370 | 711 | 1,085 | |||||||||
| Prepaid benefit costs | 1,147 | — | (89 | ) | 1,058 | ||||||||
| Regulatory assets: | |||||||||||||
| Securitized storm-recovery costs | 388 | — | — | 388 | |||||||||
| Other | 436 | — | 241 | 677 | |||||||||
| Derivatives | — | 1,004 | 7 | 1,011 | |||||||||
| Other | 150 | 1,045 | 307 | 1,502 | |||||||||
| Total other assets | 5,280 | 3,838 | 1,177 | 10,295 | |||||||||
| Total Assets | $ | 36,168 | $ | 28,525 | $ | 2,473 | $ | 67,166 | |||||
10
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
| Preliminary | |||||||||||||
| September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Capitalization | |||||||||||||
| Common stock | $ | 1,373 | — | $ | (1,369 | ) | $ | 4 | |||||
| Additional paid-in capital | 5,902 | 8,345 | (8,288 | ) | 5,959 | ||||||||
| Retained earnings | 5,285 | 5,943 | 300 | 11,528 | |||||||||
| Accumulated other comprehensive income (loss) | — | (2 | ) | (80 | ) | (82 | ) | ||||||
| Total common shareholders' equity | 12,560 | 14,286 | (9,437 | ) | 17,409 | ||||||||
| Long-term debt | 8,474 | 5,695 | 9,693 | 23,862 | |||||||||
| Total capitalization | 21,034 | 19,981 | 256 | 41,271 | |||||||||
| Current Liabilities | |||||||||||||
| Commercial paper | 580 | — | 335 | 915 | |||||||||
| Short-term debt | — | — | — | — | |||||||||
| Current maturities of long-term debt | 355 | 2,030 | 1,548 | 3,933 | |||||||||
| Accounts payable | 631 | 603 | 10 | 1,244 | |||||||||
| Customer deposits | 498 | 4 | — | 502 | |||||||||
| Accrued interest and taxes | 560 | 381 | (158 | ) | 783 | ||||||||
| Derivatives | 56 | 459 | 100 | 615 | |||||||||
| Accrued construction-related expenditures | 144 | 302 | 4 | 450 | |||||||||
| Liabilities associated with assets held for sale | — | — | — | — | |||||||||
| Other | 311 | 367 | 93 | 771 | |||||||||
| Total current liabilities | 3,135 | 4,146 | 1,932 | 9,213 | |||||||||
| Other Liabilities and Deferred Credits | |||||||||||||
| Asset retirement obligations | 1,254 | 554 | — | 1,808 | |||||||||
| Deferred income taxes | 6,133 | 1,153 | (79 | ) | 7,207 | ||||||||
| Regulatory liabilities: | |||||||||||||
| Accrued asset removal costs | 1,784 | — | — | 1,784 | |||||||||
| Asset retirement obligation regulatory expense difference | 1,987 | — | — | 1,987 | |||||||||
| Other | 391 | — | — | 391 | |||||||||
| Derivatives | 8 | 315 | 31 | 354 | |||||||||
| Deferral related to differential membership interests | — | 1,828 | — | 1,828 | |||||||||
| Other | 442 | 548 | 333 | 1,323 | |||||||||
| Total other liabilities and deferred credits | 11,999 | 4,398 | 285 | 16,682 | |||||||||
| Commitments and Contingencies | |||||||||||||
| Total Capitalization and Liabilities | $ | 36,168 | $ | 28,525 | $ | 2,473 | $ | 67,166 | |||||
NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
11
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
| Preliminary | |||||||||||||
| December 31, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Property, Plant and Equipment | |||||||||||||
| Electric plant in service and other property | $ | 34,474 | $ | 21,877 | $ | 703 | $ | 57,054 | |||||
| Nuclear fuel | 1,190 | 705 | — | 1,895 | |||||||||
| Construction work in progress | 2,585 | 2,751 | 632 | 5,968 | |||||||||
| Less accumulated depreciation and amortization | (10,698 | ) | (4,535 | ) | (271 | ) | (15,504 | ) | |||||
| Total property, plant and equipment - net | 27,551 | 20,798 | 1,064 | 49,413 | |||||||||
| Current Assets | |||||||||||||
| Cash and cash equivalents | 40 | 257 | 32 | 329 | |||||||||
| Customer receivables, net of allowances | 760 | 690 | 37 | 1,487 | |||||||||
| Other receivables | 447 | 420 | (298 | ) | 569 | ||||||||
| Materials, supplies and fossil fuel inventory | 727 | 342 | 4 | 1,073 | |||||||||
| Regulatory assets: | |||||||||||||
| Deferred clause and franchise expenses | 75 | — | — | 75 | |||||||||
| Other | 106 | — | 7 | 113 | |||||||||
| Derivatives | 5 | 483 | 29 | 517 | |||||||||
| Deferred income taxes | — | 10 | 387 | 397 | |||||||||
| Assets held for sale | — | 335 | — | 335 | |||||||||
| Other | 126 | 197 | 19 | 342 | |||||||||
| Total current assets | 2,286 | 2,734 | 217 | 5,237 | |||||||||
| Other Assets | |||||||||||||
| Special use funds | 2,918 | 1,272 | — | 4,190 | |||||||||
| Other investments | 4 | 269 | 703 | 976 | |||||||||
| Prepaid benefit costs | 1,135 | — | (104 | ) | 1,031 | ||||||||
| Regulatory assets: | |||||||||||||
| Securitized storm-recovery costs | 461 | — | — | 461 | |||||||||
| Other | 351 | — | 231 | 582 | |||||||||
| Derivatives | 1 | 873 | 46 | 920 | |||||||||
| Other | 146 | 1,193 | 290 | 1,629 | |||||||||
| Total other assets | 5,016 | 3,607 | 1,166 | 9,789 | |||||||||
| Total Assets | $ | 34,853 | $ | 27,139 | $ | 2,447 | $ | 64,439 | |||||
12
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
| Preliminary | |||||||||||||
| December 31, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Capitalization | |||||||||||||
| Common stock | $ | 1,373 | — | $ | (1,369 | ) | $ | 4 | |||||
| Additional paid-in capital | 5,903 | 8,324 | (8,691 | ) | 5,536 | ||||||||
| Retained earnings | 5,254 | 5,473 | 56 | 10,783 | |||||||||
| Accumulated other comprehensive income (loss) | — | (149 | ) | (106 | ) | (255 | ) | ||||||
| Total common shareholders' equity | 12,530 | 13,648 | (10,110 | ) | 16,068 | ||||||||
| Long-term debt | 8,329 | 5,606 | 9,242 | 23,177 | |||||||||
| Total capitalization | 20,859 | 19,254 | (868 | ) | 39,245 | ||||||||
| Current Liabilities | |||||||||||||
| Commercial paper | 105 | — | 1,106 | 1,211 | |||||||||
| Short-term debt | — | — | 200 | 200 | |||||||||
| Current maturities of long-term debt | 453 | 744 | 1,574 | 2,771 | |||||||||
| Accounts payable | 612 | 658 | 11 | 1,281 | |||||||||
| Customer deposits | 503 | 4 | 1 | 508 | |||||||||
| Accrued interest and taxes | 223 | 473 | (282 | ) | 414 | ||||||||
| Derivatives | 20 | 367 | 43 | 430 | |||||||||
| Accrued construction-related expenditures | 235 | 187 | 5 | 427 | |||||||||
| Liabilities associated with assets held for sale | — | 733 | — | 733 | |||||||||
| Other | 475 | 405 | 24 | 904 | |||||||||
| Total current liabilities | 2,626 | 3,571 | 2,682 | 8,879 | |||||||||
| Other Liabilities and Deferred Credits | |||||||||||||
| Asset retirement obligations | 1,206 | 508 | 1 | 1,715 | |||||||||
| Deferred income taxes | 5,584 | 886 | 233 | 6,703 | |||||||||
| Regulatory liabilities: | |||||||||||||
| Accrued asset removal costs | 1,950 | — | — | 1,950 | |||||||||
| Asset retirement obligation regulatory expense difference | 1,813 | — | — | 1,813 | |||||||||
| Other | 309 | — | — | 309 | |||||||||
| Derivatives | — | 529 | 58 | 587 | |||||||||
| Deferral related to differential membership interests | — | 1,784 | — | 1,784 | |||||||||
| Other | 506 | 607 | 341 | 1,454 | |||||||||
| Total other liabilities and deferred credits | 11,368 | 4,314 | 633 | 16,315 | |||||||||
| Commitments and Contingencies | |||||||||||||
| Total Capitalization and Liabilities | $ | 34,853 | $ | 27,139 | $ | 2,447 | $ | 64,439 | |||||
NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
13
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
| Preliminary | |||||||||||||
| Nine Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Cash Flows From Operating Activities | |||||||||||||
| Net income (loss) | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
| Depreciation and amortization | 780 | 704 | 39 | 1,523 | |||||||||
| Nuclear fuel and other amortization | 137 | 106 | 19 | 262 | |||||||||
| Impairment charge | — | 300 | — | 300 | |||||||||
| Unrealized (gains) losses on marked to market energy contracts | — | (84 | ) | — | (84 | ) | |||||||
| Deferred income taxes | 465 | 210 | 148 | 823 | |||||||||
| Cost recovery clauses and franchise fees | (126 | ) | — | — | (126 | ) | |||||||
| Benefits associated with differential membership interests - net | — | (119 | ) | — | (119 | ) | |||||||
| Allowance for equity funds used during construction | (42 | ) | — | (8 | ) | (50 | ) | ||||||
| Gains on disposal of assets - net | — | (40 | ) | — | (40 | ) | |||||||
| Net gain from discontinued operations, net of income taxes | — | (175 | ) | (13 | ) | (188 | ) | ||||||
| Other than temporary impairment losses on securities held in | |||||||||||||
| nuclear decommissioning funds | — | 10 | — | 10 | |||||||||
| Other - net | 101 | 32 | (12 | ) | 121 | ||||||||
| Changes in operating assets and liabilities: | |||||||||||||
| Customer and other receivables | (265 | ) | (114 | ) | (5 | ) | (384 | ) | |||||
| Materials, supplies and fossil fuel inventory | (30 | ) | (39 | ) | — | (69 | ) | ||||||
| Other current assets | (5 | ) | (4 | ) | 5 | (4 | ) | ||||||
| Other assets | (19 | ) | 9 | (13 | ) | (23 | ) | ||||||
| Accounts payable | 93 | 34 | 1 | 128 | |||||||||
| Margin cash collateral | — | (448 | ) | — | (448 | ) | |||||||
| Income taxes | 371 | (344 | ) | (147 | ) | (120 | ) | ||||||
| Interest and other taxes | 314 | 22 | 14 | 350 | |||||||||
| Other current liabilities | (65 | ) | (19 | ) | 67 | (17 | ) | ||||||
| Other liabilities | (18 | ) | (12 | ) | (6 | ) | (36 | ) | |||||
| Net cash provided by (used in) operating activities | 2,792 | 499 | 99 | 3,390 | |||||||||
14
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
| Preliminary | |||||||||||||
| Nine Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Cash Flows From Investing Activities | |||||||||||||
| Capital expenditures of FPL | (2,093 | ) | — | — | (2,093 | ) | |||||||
| Independent power and other investments of NextEra Energy Resources | — | (2,244 | ) | — | (2,244 | ) | |||||||
| Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 170 | — | 170 | |||||||||
| Nuclear fuel purchases | (116 | ) | (84 | ) | — | (200 | ) | ||||||
| Other capital expenditures | — | — | (122 | ) | (122 | ) | |||||||
| Change in loan proceeds restricted for construction | — | 245 | — | 245 | |||||||||
| Proceeds from sale or maturity of securities in special use funds | 1,967 | 637 | — | 2,604 | |||||||||
| Purchases of securities in special use funds | (2,020 | ) | (657 | ) | (1 | ) | (2,678 | ) | |||||
| Proceeds from sale or maturity of other securities | — | — | 179 | 179 | |||||||||
| Purchases of other securities | — | — | (176 | ) | (176 | ) | |||||||
| Other - net | 28 | 20 | 1 | 49 | |||||||||
| Net cash provided by (used in) investing activities | (2,234 | ) | (1,913 | ) | (119 | ) | (4,266 | ) | |||||
| Cash Flows From Financing Activities | |||||||||||||
| Issuances of long-term debt | 498 | 1,870 | 1,285 | 3,653 | |||||||||
| Retirements of long-term debt | (453 | ) | (491 | ) | (725 | ) | (1,669 | ) | |||||
| Proceeds from sale of differential membership interests | — | 201 | — | 201 | |||||||||
| Payments to differential membership investors | — | (47 | ) | — | (47 | ) | |||||||
| Net change in short-term debt | 475 | — | (970 | ) | (495 | ) | |||||||
| Issuances of common stock - net | — | — | 415 | 415 | |||||||||
| Repurchases of common stock | — | — | — | — | |||||||||
| Dividends on common stock | — | — | (836 | ) | (836 | ) | |||||||
| Dividends & capital distributions from (to) NextEra Energy, Inc. - net | (1,070 | ) | 22 | 1,048 | — | ||||||||
| Other - net | 6 | (37 | ) | (86 | ) | (117 | ) | ||||||
| Net cash provided by (used in) financing activities | (544 | ) | 1,518 | 131 | 1,105 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 14 | 104 | 111 | 229 | |||||||||
| Cash and cash equivalents at beginning of period | 40 | 257 | 32 | 329 | |||||||||
| Cash and cash equivalents at end of period | $ | 54 | $ | 361 | $ | 143 | $ | 558 | |||||
NEER's financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
15
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
| Preliminary | |||||||||||||
| Nine Months Ended September 30, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Cash Flows From Operating Activities | |||||||||||||
| Net income (loss) | $ | 984 | $ | 516 | $ | (18 | ) | $ | 1,482 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
| Depreciation and amortization | 496 | 595 | 30 | 1,121 | |||||||||
| Nuclear fuel and other amortization | 85 | 97 | 22 | 204 | |||||||||
| Impairment charge | — | — | — | — | |||||||||
| Unrealized (gains) losses on marked to market energy contracts | — | (84 | ) | (5 | ) | (89 | ) | ||||||
| Deferred income taxes | 656 | (96 | ) | (43 | ) | 517 | |||||||
| Cost recovery clauses and franchise fees | 115 | — | — | 115 | |||||||||
| Benefits associated with differential membership interests - net | — | (70 | ) | — | (70 | ) | |||||||
| Allowance for equity funds used during construction | (36 | ) | — | (16 | ) | (52 | ) | ||||||
| Gains on disposal of assets - net | — | (120 | ) | — | (120 | ) | |||||||
| Net gain from discontinued operations, net of income taxes | — | — | — | — | |||||||||
| Other than temporary impairment losses on securities held in | |||||||||||||
| nuclear decommissioning funds | — | 11 | — | 11 | |||||||||
| Other - net | 8 | 76 | 145 | 229 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||||
| Customer and other receivables | (289 | ) | (34 | ) | (24 | ) | (347 | ) | |||||
| Materials, supplies and fossil fuel inventory | 24 | (3 | ) | — | 21 | ||||||||
| Other current assets | (35 | ) | (11 | ) | (5 | ) | (51 | ) | |||||
| Other assets | (41 | ) | 26 | (35 | ) | (50 | ) | ||||||
| Accounts payable | 60 | (59 | ) | — | 1 | ||||||||
| Margin cash collateral | — | 110 | — | 110 | |||||||||
| Income taxes | 74 | (2 | ) | (78 | ) | (6 | ) | ||||||
| Interest and other taxes | 264 | (5 | ) | 11 | 270 | ||||||||
| Other current liabilities | (55 | ) | (26 | ) | 54 | (27 | ) | ||||||
| Other liabilities | (8 | ) | (58 | ) | (46 | ) | (112 | ) | |||||
| Net cash provided by (used in) operating activities | 2,302 | 863 | (8 | ) | 3,157 | ||||||||
16
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
| Preliminary | |||||||||||||
| Nine Months Ended September 30, 2012 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||
| Cash Flows From Investing Activities | |||||||||||||
| Capital expenditures of FPL | (3,061 | ) | — | — | (3,061 | ) | |||||||
| Independent power and other investments of NextEra Energy Resources | — | (3,025 | ) | — | (3,025 | ) | |||||||
| Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 105 | — | 105 | |||||||||
| Nuclear fuel purchases | (137 | ) | (66 | ) | 1 | (202 | ) | ||||||
| Other capital expenditures | — | — | (401 | ) | (401 | ) | |||||||
| Change in loan proceeds restricted for construction | — | 212 | — | 212 | |||||||||
| Proceeds from sale or maturity of securities in special use funds | 2,949 | 941 | — | 3,890 | |||||||||
| Purchases of securities in special use funds | (3,031 | ) | (963 | ) | — | (3,994 | ) | ||||||
| Proceeds from sale or maturity of other securities | — | — | 219 | 219 | |||||||||
| Purchases of other securities | — | — | (259 | ) | (259 | ) | |||||||
| Other - net | 27 | (10 | ) | (2 | ) | 15 | |||||||
| Net cash provided by (used in) investing activities | (3,253 | ) | (2,806 | ) | (442 | ) | (6,501 | ) | |||||
| Cash Flows From Financing Activities | |||||||||||||
| Issuances of long-term debt | 594 | 1,017 | 2,615 | 4,226 | |||||||||
| Retirements of long-term debt | (50 | ) | (572 | ) | (699 | ) | (1,321 | ) | |||||
| Proceeds from sale of differential membership interests | — | 414 | — | 414 | |||||||||
| Payments to differential membership investors | — | (53 | ) | — | (53 | ) | |||||||
| Net change in short-term debt | 142 | 193 | 61 | 396 | |||||||||
| Issuances of common stock - net | — | — | 386 | 386 | |||||||||
| Repurchases of common stock | — | — | (19 | ) | (19 | ) | |||||||
| Dividends on common stock | — | — | (752 | ) | (752 | ) | |||||||
| Dividends & capital distributions from (to) NextEra Energy, Inc. - net | 240 | 1,027 | (1,267 | ) | — | ||||||||
| Other - net | 9 | (50 | ) | (23 | ) | (64 | ) | ||||||
| Net cash provided by (used in) financing activities | 935 | 1,976 | 302 | 3,213 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (16 | ) | 33 | (148 | ) | (131 | ) | ||||||
| Cash and cash equivalents at beginning of period | 36 | 166 | 175 | 377 | |||||||||
| Cash and cash equivalents at end of period | $ | 20 | $ | 199 | $ | 27 | $ | 246 | |||||
NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
17
NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
| Preliminary | |||||||||||||
First Quarter | Second Quarter | Third Quarter | Year-To-Date | ||||||||||
| NextEra Energy, Inc. - 2012 Earnings Per Share | $ | 1.11 | $ | 1.45 | $ | 0.98 | $ | 3.55 | |||||
| Florida Power & Light - 2012 Earnings Per Share | $ | 0.58 | $ | 0.85 | $ | 0.93 | $ | 2.35 | |||||
| Allowance for funds used during construction | 0.03 | — | — | 0.02 | |||||||||
| Cost recovery clause results, primarily nuclear uprates in base rates | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.07 | ) | |||||
| Project Momentum transition costs and share dilution | (0.01 | ) | (0.02 | ) | (0.05 | ) | (0.08 | ) | |||||
| New investment and other | 0.09 | 0.11 | 0.14 | 0.37 | |||||||||
| Florida Power & Light - 2013 Earnings Per Share | 0.68 | 0.92 | 0.99 | 2.59 | |||||||||
| NEER - 2012 Earnings Per Share | 0.53 | 0.60 | 0.10 | 1.23 | |||||||||
| New investments | 0.03 | 0.12 | 0.08 | 0.23 | |||||||||
| Existing assets | (0.05 | ) | 0.04 | — | (0.01 | ) | |||||||
| Gas infrastructure | (0.03 | ) | 0.02 | 0.02 | 0.02 | ||||||||
| Customer supply businesses & proprietary power & gas trading | 0.04 | (0.03 | ) | (0.03 | ) | (0.01 | ) | ||||||
| Non-qualifying hedges impact | (0.21 | ) | (0.17 | ) | 0.49 | 0.12 | |||||||
| Net gain from discontinued operations | 0.41 | — | — | 0.41 | |||||||||
| Impairment charge and valuation allowance | (0.81 | ) | — | — | (0.80 | ) | |||||||
| Operating results of Spain solar projects | — | — | 0.03 | 0.03 | |||||||||
| Change in other than temporary impairment losses - net | 0.01 | (0.04 | ) | (0.03 | ) | (0.07 | ) | ||||||
| Other, including interest expense and share dilution | (0.01 | ) | — | — | (0.04 | ) | |||||||
| NEER - 2013 Earnings Per Share | (0.09 | ) | 0.54 | 0.66 | 1.11 | ||||||||
| Corporate and Other - 2012 Earnings Per Share | — | — | (0.05 | ) | (0.03 | ) | |||||||
| Lone Star Transmission | 0.02 | 0.01 | — | 0.02 | |||||||||
| Non-qualifying hedges impact | — | — | — | (0.01 | ) | ||||||||
| Net gain from discontinued operations | 0.03 | — | — | 0.03 | |||||||||
| Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution | — | (0.03 | ) | 0.04 | 0.01 | ||||||||
| Corporate and Other - 2013 Earnings Per Share | 0.05 | (0.02 | ) | (0.01 | ) | 0.02 | |||||||
| NextEra Energy, Inc. - 2013 Earnings Per Share | $ | 0.64 | $ | 1.44 | $ | 1.64 | $ | 3.72 | |||||
NEER financial statements include non-utility interest expense on a deemed capital structure of 70% debt and allocated shared service costs. For interest allocation purposes, 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 & Other.
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding.
The sum of the quarterly amounts may not equal the total for the year due to rounding.
18
NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)
| Preliminary | |||||||
| September 30, 2013 | Per Books | Adjusted 1 | |||||
| Long-term debt, including current maturities, | |||||||
| short-term debt and commercial paper | |||||||
| Junior Subordinated Debentures | $ | 3,353 | $ | 1,677 | |||
| Debentures, related to NextEra Energy's equity units | 1,750 | ||||||
| Project debt: | |||||||
| Natural gas-fired assets | 1,622 | ||||||
| Wind assets | 3,672 | 918 | |||||
| Solar | 948 | ||||||
| Storm Securitization Debt | 386 | ||||||
| Pipeline Funding | 500 | ||||||
| Waste Water Bonds | 55 | ||||||
Other2 | 1,403 | ||||||
Other long-term debt, including current maturities, short-term debt and commercial paper3 | 16,424 | 16,424 | |||||
| Total debt per Balance Sheet | 28,710 | 20,422 | |||||
| Junior Subordinated Debentures | 1,676 | ||||||
| Debentures, related to NextEra Energy's equity units | 1,750 | ||||||
| Common shareholders' equity | 17,409 | 17,409 | |||||
| Total capitalization, including debt due within one year | $ | 46,119 | $ | 41,257 | |||
| Debt ratio | 62 | % | 49 | % | |||
| December 31, 2012 | Per Books | Adjusted 1 | |||||
| Long-term debt, including current maturities and | |||||||
| commercial paper | |||||||
| Junior Subordinated Debentures | $ | 3,253 | $ | 1,627 | |||
| Debentures, related to NextEra Energy's equity units | 1,653 | ||||||
| Project debt: | |||||||
| Natural gas-fired assets | 560 | ||||||
| Wind assets | 3,634 | 909 | |||||
| Solar | 173 | ||||||
| Storm Securitization Debt | 438 | ||||||
| Pipeline Funding | 500 | ||||||
| Waste Water Bonds | 56 | ||||||
Other2 | 1,531 | ||||||
Other long-term debt, including current maturities, short-term debt and commercial paper3 | 17,092 | 17,092 | |||||
| Total debt | 27,359 | 21,159 | |||||
| Junior Subordinated Debentures | 1,626 | ||||||
| Debentures, related to NextEra Energy's equity units | 1,653 | ||||||
| Common shareholders' equity | 16,068 | 16,068 | |||||
| Total capitalization, including debt due within one year | $ | 43,427 | $ | 40,506 | |||
| Debt ratio | 63 | % | 52 | % | |||
1 Adjusted debt calculation is based on NextEra's interpretation of S&P's credit metric methodology which can be found in their Corporate | |||
| Ratings Criteria on S&P's website. The December 31, 2012 ratio has been restated to this methodology. | |||
2 Other includes imputed debt of purchase power agreements, a portion of the deferral related to differential membership interests and certain | |||
| accrued interest. | |||
3 Includes premium and discount on all debt issuances. | |||
19
Florida Power & Light Company
Statistics
(unaudited)
| Preliminary | |||||||||
| Quarter | Year-to-Date | ||||||||
| Periods Ended September 30 | 2013 | 2012 | 2013 | 2012 | |||||
| Energy sales (million kWh) | |||||||||
| Residential | 16,848 | 16,708 | 40,898 | 41,261 | |||||
| Commercial | 12,626 | 12,472 | 33,989 | 34,224 | |||||
| Industrial | 759 | 747 | 2,241 | 2,258 | |||||
| Public authorities | 144 | 136 | 417 | 410 | |||||
| Increase (decrease) in unbilled sales | (582 | ) | (82 | ) | 563 | 676 | |||
| Total retail | 29,795 | 29,981 | 78,108 | 78,829 | |||||
| Electric utilities | 582 | 655 | 1,655 | 1,739 | |||||
| Interchange power sales | 438 | 164 | 1,926 | 434 | |||||
| Total | 30,815 | 30,800 | 81,689 | 81,002 | |||||
| Average price (cents/kWh) (1) | ||||||||
| Residential | 10.58 | 10.53 | 10.50 | 10.47 | ||||
| Commercial | 8.33 | 8.53 | 8.52 | 8.65 | ||||
| Industrial | 6.39 | 6.79 | 6.50 | 6.86 | ||||
| Total | 9.50 | 9.55 | 9.47 | 9.53 | ||||
| Average customer accounts (000's) | |||||||||
| Residential | 4,101 | 4,054 | 4,086 | 4,050 | |||||
| Commercial | 517 | 513 | 515 | 511 | |||||
| Industrial | 10 | 9 | 9 | 9 | |||||
| Other | 4 | 3 | 5 | 4 | |||||
| Total | 4,632 | 4,579 | 4,615 | 4,574 | |||||
| End of period customer accounts (000's) | SEP 2013 | SEP 2012 | ||
| Residential | 4,113 | 4,054 | ||
| Commercial | 518 | 513 | ||
| Industrial | 10 | 9 | ||
| Other | 3 | 3 | ||
| Total | 4,644 | 4,579 | ||
| 1. Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund. |
| 2013 | Normal | 2012 | |||||
| Three Months Ended September 30 | |||||||
| Cooling degree-days | 901 | 929 | 919 | ||||
| Heating degree-days | — | — | — | ||||
| Nine Months Ended September 30 | |||||||
| Cooling degree-days | 1,598 | 1,650 | 1,670 | ||||
| Heating degree-days | 220 | 261 | 160 | ||||
| Cooling degree days for the periods above use a 72 degree base temperature and heating degree days use a 66 degree base temperature. | |
20