Europe Investor Presentation June 2012 Cautionary Statements And - - PDF document

Europe Investor Presentation

June 2012

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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 and adjusted EBITDA, which are not financial measurements prepared in accordance with GAAP. Definitions of these measures and quantitative reconciliations of these measures to the closest GAAP financial measure are included in the attached Appendix. Prospective adjusted earnings and adjusted EBITDA 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. Neither adjusted earnings nor adjusted EBITDA represents a substitute for net income, as prepared in accordance with GAAP.

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• Above-average growth prospects:

– At FPL, investing capital to improve customer value – At Energy Resources, record renewables backlog more than

• ffsets commodity headwinds

– At Lone Star Transmission, building a regulated transmission company

• Portfolio mix shifting toward more regulated and long-term

contracted assets

• Well-hedged against short-term commodity price volatility
• Maintaining strong financial position and balance sheet
• Targeting 55% payout ratio in 2014 (up from 49%(1)),

translating to expected dividend growth of ~10% per year A brief summary

NextEra Energy – Overview

1) Average dividend payout ratio from 2002-2011

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NextEra Energy is a premier U.S. power company primarily comprised of two strong businesses…

A growing, diversified and financially strong company

• Successful wholesale generator
• U.S. leader in renewable generation
• Assets in 22 states and Canada
• 16,607 MW in operation
• One of the largest U.S. electric utilities
• Vertically integrated, retail rate-regulated
• 4.6 MM customer accounts
• 24,460 MW in operation

1) Market capitalization as of June 8, 2012; source: FactSet Note: All other data as of December 31, 2011

• $28.0 B market capitalization(1)
• 41,067 MW in operation
• $57 B in total assets

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• Visible growth opportunities at both primary 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 Investment Opportunity

…and is well-positioned to capitalize on today’s market

• pportunities

Visible Growth Opportunities Operational Excellence Financial Strength Attractive Investment Opportunity

+ +

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$0 $5 $10 $15 $20

10,000 20,000 30,000 40,000 50,000

$3.4 $6.4 $8.2 $10.9$14.4$17.5 $28.9 $34.7 $41.3 $22.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1) NextEra Energy presence as of March 31, 2012 2) As of December 31, 2011; Source: SNL, except for NextEra Energy 3) Source: FactSet data for S&P Electric Utilities Index components for the 12 months ended December 31, 2011

NextEra Energy has realized substantial and profitable growth while diversifying its asset base North American Presence(1) Cumulative Capital Deployed

($ B)

Top Ten U.S. Capacity Owners(2)

(MW)

Revenue(3)

(Trailing 12 Months Reported; $ B)

NextEra Energy $15.3 B NextEra Energy 41,067MW

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6% 15% 26% 24% 21% 8% 0% 5% 10% 15% 20% 25% 30% A or higher A- BBB+ BBB BBB- Non- Investment Grade

NextEra Energy has one of the strongest balance sheets in the industry…

Credit Ratings

Our credit rating remains solid and supports our business opportunities at our principal subsidiaries

NextEra Energy Issuer credit rating Outlook Florida Power & Light First mortgage bonds Commercial paper Outlook NextEra Energy Capital Holdings

• Sr. unsecured debentures

Commercial paper Outlook

S&P A- Stable A A-2 Stable BBB+ A-2 Stable Fitch A- AA- F-1 Stable A- F-1 Stable Stable Moody's Baa1 Aa3 P-1 Stable Baa1 P-2 Stable Stable

NextEra Energy Ratings(2) Utility Credit Ratings(1)

1) Source: Edison Electric Institute: S&P Utility Credit Ratings Distribution – Financial Update Q4 2011 2) Reflects latest ratings as published by S&P on April 6, 2012, Moody’s on June 6, 2012 and Fitch on April 27, 2012

NextEra Energy

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Hydro 1.0% Solar 0.3%

1 2 3 4

CO2 Emissions Rates

(Lbs/MWh)

1) As of December 31, 2011; may not add to 100% due to rounding Source for emissions rates : 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

…and one of the cleanest emissions profiles among the nation’s top 50 power producers… NextEra Energy 2011 Fuel Mix(1)

(MWh)

SO2 Emissions Rates

(Lbs/MWh)

NOx Emissions Rates

(Lbs/MWh)

Nuclear 22% Wind 13% Natural Gas 56% Oil 1.0% NextEra Energy

500 1,000 1,500 2,000 2,500

NextEra Energy

4 8 12 16

NextEra Energy Coal 6%

9 1) Source: Company earnings releases; adjusted EPS as defined by NextEra Energy may not be the same as similarly titled measures of other companies. 2) See Appendix for reconciliation of adjusted amounts to GAAP amounts 3) Source: Bloomberg 4) Source: FactSet; Total shareholder return from December 31, 2001 to December 31, 2011

Over an extended period of time, we have been successful in attaining our goal of outperforming our industry

NextEra Energy Performance vs. Electric Utility Industry

10-Years Ending December 31, 2011 S&P 500 Electric Utilities Index NextEra Energy Adjusted EPS Growth (CAGR) 2.2%(1) 6.3%(2) Dividends per Share Growth (CAGR) 4.9%(3) 7.0% Total Shareholder Return(4) 128.6% 208.7%

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• One of the largest U.S. electric

utilities

• Vertically integrated, retail rate-

regulated

• 4.6 MM customer accounts
• 24,460 MW in operation
• $10.6 billion in operating

revenues

• $31.8 billion in total assets

Florida Power & Light is one of the best utility franchises in the U.S.

Florida Power & Light(1)

FPL Service Territory FPL Power Plants FPL Solar Facilities

1) All data as of December 31, 2011; operating revenues for the 12 months ended December 31, 2011

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Our approach to the business is founded on the “virtuous circle”

Virtuous Circle

Customer Satisfaction Constructive Regulatory Environment Strong Financial Position Superior Customer Value Delivery

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$50 $70 $90 $110 $130 $150 $170

FPL’s Customer Value Proposition

We deliver excellent value to our customers…

Superior Reliability Award-Winning Customer Service Clean Environmental Profile

+ + +

Competitive, Affordable Bills

Florida Electric Utility Residential Bill Comparison of Average Typical Monthly Bills from January – March 2012(1) Residential 1,000 kWh Bill

FPL $94.62 Florida Average $125.70 U.S. Average(2) $124.31

The lowest bill in the state and 24% below the national average

1) Average of typical 1,000 kWh January through March 2012 monthly bill data compiled from the Florida Public Service Commission, Florida Municipal Electric Association, Reedy Creek Improvement District Florida Electric Cooperatives Association and Jacksonville Electric Authority. Figures include state gross receipts tax of about 2.5

• percent. Florida Average is the average of all bills depicted. Florida Public Utilities Company operates as one utility;

however, they have separate bills for Marianna and Fernandina Beach 2) U.S. Average, as reported by EEI Typical Bills and Average Rates Report, as of January 2012

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7,500 8,000 8,500 9,000 9,500 10,000 10,500 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40

O&M Cost per Retail kWh Fossil Heat Rate

…built on operational excellence and a superior cost proposition

O&M ¢/kWh

1) Industry average source is Ventix (FERC Form 1) and FPL is O&M as reported annually in the 10-K. 2) Source: Platts & Ventix – fossil plants in the U.S. excluding FPL.

Industry Average(1) FPL(1)

Good Cents per kWh

Btu/ kWh

Industry Average(2) FPL

Good Btu per kWh

1.78 1.28 1.64 2.28 10,388 10,045 7,803

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$- $1.0 $2.0 $3.0 $4.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E

FPL’s Capital Expenditures(1) At FPL, we are investing heavily to improve long-term customer value without driving up customer bills

1) 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; forecasted cap ex for years 2012-2014 is based on 3/31/12 10-Q filing 2) Cost range estimated to be between $2.95 - $3.15 billion 3) Revenue requirement impact of ESF project through 2010 approved as part of the 2010 base rate decision

FPL’s Major Capital Projects

Estimated In-Service Approx. Size (MW) Project Name Fuel Type Est. Cost ($ B) PSC Approved Recovery

2011 1,220 West County Energy Center 3 Gas $0.9 Yes Base 2011-2013 490 Nuclear Uprates Nuclear $3.1(2) Yes Clause 2013 1,210 Cape Canaveral Modernization Gas $1.0 Yes Base 2014 1,210 Riviera Beach Modernization Gas $1.3 Yes Base 2009-2013 N/A Energy Smart Florida N/A $0.9 Yes(3) Base 2016 1,280 Port Everglades Modernization Gas $1.2 Yes Base $ B

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FPL Base Rate Request

FPL submitted its formal base rate filing on March 19th

• Summary of request:

– $516.5 MM base revenue increase effective January 2, 2013 – $173.9 MM step increase coinciding with COD of the Cape Canaveral modernization – Three major drivers: Cape Canaveral cost recovery Less surplus depreciation available to amortize Re-set ROE to 11.25% plus 25 bps performance adder

Q4 Late August

Final decision by PSC expected Technical hearings

June July March 19

Intervenor, staff, and FPL rebuttal testimony Quality of service hearings File formal rate request (testimony; detailed data schedules)

January 2, 2013

New rates effective

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FPL Base Rate Request: Bill Impact

Base Portion of Bill Total Bill

FPL’s base rate increase is significantly offset by reductions in the fuel portion of the bill

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Typical Low Usage 2012 2013 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 1,000 kWh Bill Low Usage 2012 2013

1) 530 kWh bill, which is usage at the 25th percentile of residential customers (1) (1)

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$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2011 E 2012 E 2013 E 2014 E Retail Rate Base Other

Over the next few years, additional investments in generation and infrastructure at FPL will drive an increase in capital on which we earn a return

FPL Rate Base (2011-2014E)

$ B

1) Includes wholesale rate base, clause-related investments, and AFUDC projects

$21.7 $24.7 - $24.9 $26.4 - $26.8 $27.3 - $27.7

(1)

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• Successful wholesale

generator

• U.S. leader in

renewable generation

– With nearly 10,000 MW of wind by the end

• f 2012
• 16,607 MW in operation

– Would be a Top 15 utility on a standalone basis

• $4.5 billion in operating

revenues

• $23.5 billion in total

assets

Energy Resources is a successful wholesale generator with a concentration of clean energy assets under long-term contracts

Energy Resources Portfolio(1)

1) All data as of December 31, 2011; operating revenues for the 12 months ended December 31, 2011; map indicates Energy Resources presence as of March 31, 2012

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Energy Resources Strategy

Our strategy at Energy Resources has always been to build around

• ur core strengths, taking advantage of market opportunities

Combined-Cycle Gas Turbines Wind Business Marketing & Trading Business Nuclear Business (Seabrook) Visible Growth Opportunities Operational Excellence Financial Strength Core Strengths

+ +

1998 2012 Longer-Term Vision Skills Scale Scope Long-Term Competitive Advantage

+ +

New Solar

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4,728 3,339 2,909 2,221 1,876 1,691 1,345 1,224 1,155 8,349(1)

E n e r g y R e s

• u

r c e s I b e r d r

• l

a H

• r

i z

• n

M i d A m e r i c a n E . O n E d i s

• n

I n v e n e r g y T e r r a

• G

e n e n X c

• A

E S

1,745 2,719 2,758 3,192 4,016 5,077 6,375 7,544 8,298 8,569 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1

Top U.S. Wind Developers / Owners

(MW)

Energy Resources is the largest owner of wind assets in the U.S., with almost twice as much capacity as the next competitor

Energy Resources Wind Portfolio

Cumulative Wind Growth

(MW)

By year-end 2012, Energy Resources expects to have nearly 10,000 MW of installed wind that provide, on their own, attractive upside opportunities over time

Source: Competitor MW for 2011-preliminary estimate from AWEA 1) Includes 128 MW re-powered and 19 MW acquired ownership interest in 2011. Excludes 220 MW in Canada

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Wind Production Summary

Wind is no longer a “niche” business

1) For new wind additions, megawatts have been pro rated based on partial year in-service

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

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$9 $9 $16 $37 $26 $35 $0 $5 $10 $15 $20 $25 $30 $35 $40 2009 2010 2011 2012E 2013E 2014E

$2 $4 $6 $8 $10 $12

Natural Gas Prices(1) 2012 through 2014 will be challenged by headwinds…

$ MM

Production Tax Credit Roll-Off

The impact of wind projects reaching the end of their 10-year PTC life will be partially offset by PPA price escalation Lower natural gas prices hurt merchant segments as hedges roll off

1) 10-Year Rolling Forward Nymex Gas

$/MMBtu

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Wind and Solar Development

Estimated Cap Ex for Wind and Solar Projects through 2014(1)

1) As of 3/31/2012, 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 exclude the capital investments spent prior to 2012

• In 2012, Energy Resources plans

to add ~1,300 MW of new U.S. wind capacity, which are contracted or long-term hedged

• We have a backlog of ~600 MW of

Canadian wind with COD between 2012 and 2015

• Energy Resources expects a total
• f ~900 MW of contracted solar

capacity by end of 2016

2012-2014 Solar $2.8 - $3.0 B Wind $3.1 - $3.3 B $5.9 - $6.3 B

…but supported by the largest backlog of renewable projects in our history

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We are significantly hedged for the next several years

Energy Resources Equivalent Gross Margin Contracted or Hedged(1)

We remain focused on having a highly contracted portfolio

96% 93% 87% 99% 100% 100% 0% 20% 40% 60% 80% 100% 2012 2013 2014 Existing Assets New Assets

1) Projected equivalent gross margin includes Energy Resources’ consolidated investments as well as its share of earnings from equity method investments. Projected equivalent gross margin for each category of asset set forth above represents such category’s projected (a) revenue less (b) fuel expense. Projected gross margin excludes the impact of non-qualifying hedges. Projected revenue as used in the calculations of projected equivalent gross margin represents the sum of projected (a) operating revenue plus a pre-tax allocation of (b) production tax credits, plus (c) investment tax credits and plus (d) convertible investment tax credits. Projected revenue excludes the impact of non-qualifying hedges. Projected equivalent gross margin may differ significantly from the operating income as calculated in accordance with GAAP

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Lone Star Transmission CREZ Line

Successful development of Lone Star’s CREZ line represents a significant regulated growth opportunity

• In January 2009, Lone Star was selected

by Texas PUC as a CREZ(1) transmission service provider

– ~320-mile line – ~$800 million of rate base

• Received approval for the line in late 2010
• Construction began in 2011

– Earning Allowance for Funds Used During Construction

• Expected to be in service in 2013

1) CREZ: Competitive Renewable Energy Zone

The CREZ project in Texas sets the stage for potential new regulated transmission development opportunities

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$2.38 $4.39 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2001 2011 2014E

NextEra Energy Adjusted Earnings Per Share Growth

Together, NextEra Energy’s investment opportunities form the basis for our expected adjusted earnings per share growth through 2014 and will contribute to maintaining the growth momentum into 2015

• Adj. EPS

$5.05 - $5.65

Note: See Appendix for reconciliation of adjusted amounts to GAAP amounts 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, and net other than temporary impairment losses on securities held in NextEra Energy Resources’ nuclear decommissioning funds, none of which can be determined at this time, and the after-tax charges resulting from the sale of the five natural gas-fired generating assets in two sale transactions in 2011. In addition, NextEra Energy’s adjusted earnings expectations assume, among other things: normal weather and operating conditions; no further significant decline in the national or the Florida economy; supportive commodity markets; public policy support for wind and solar development and construction; market demand; 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. These earnings expectations should be read in conjunction with NextEra Energy’s current and periodic reports filed with the SEC, which may include other items that may affect future results. The adjusted earnings per share expectations are valid only as of June 18, 2012

2015 and Beyond

• Maintain growth

momentum into 2015

• Continued contributions

from new assets coming into service at both FPL and Energy Resources

• Highly hedged from a

commodities perspective in 2015

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78% 84% 0% 20% 40% 60% 80% 100% 2011 2014E 58% 65% 0% 20% 40% 60% 80% 100% 2011 2014E

NextEra Energy’s business mix is expected to shift to a more regulated and long-term contracted business by 2014 Adjusted EBITDA(1) from Regulated and Long-Term Contracted Operations

1) Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA); see Appendix for reconciliation of adjusted EBITDA to Net Income

Adjusted Earnings from Regulated Businesses

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$1.16$1.20 $1.30 $1.42$1.50 $1.64 $1.78 $1.89 $2.00 $2.20 $2.40 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 2 1 2

Dividend Policy

NextEra Energy’s current dividend policy reflects its expected increase in the proportionate contribution from its rate- regulated businesses and long-term contracted assets

1) Annualized, split-adjusted, quarterly dividend; dividend declarations are subject to the discretion of the board of directors of NextEra Energy 2) Projected based upon dividend of $0.60 paid on March 15, 2012 3) Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA); see Appendix for reconciliation of adjusted EBITDA to Net Income

Dividends Per Share(1)

Historic Dividend Per Share Growth

• Expected increase in the proportion
• f NextEra Energy’s portfolio

represented by rate-regulated businesses and assets under long- term contract

– 84% of adjusted EBITDA in 2014, up from 78% of adjusted EBITDA(3) in 2011

• Target payout ratio of 55% in 2014

– Up from 2002-2011 average payout ratio of 49%

(2)

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Critical Success Factors for 2012

• At FPL:

– Continue to deliver outstanding customer value – Continue execution on major capital projects – Achieve satisfactory outcome of base rate case

• At Energy Resources:

– Ensure solid execution in daily operations – Move forward with record renewable backlog

Approximately 1,300 MW U.S. wind COD in 2012 Approximately 600 MW Canadian wind COD between 2012 and 2015 Approximately 900 MW solar COD between 2012 and 2016

• At Lone Star Transmission:

– Continue construction to achieve Q1 2013 COD target – Achieve satisfactory outcome of base rate case in Texas

We are intensely focused on execution

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Appendix

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Our two principal businesses share common critical support functions

Engineering & Construction Supply Chain Nuclear Generation Non-nuclear Generation

A premier regulated utility… …and a diversified, competitive power producer

37 $2.41 $2.48 $2.49 $2.63 $3.04 $3.49 $3.84 $4.05 $4.30 $4.39

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11

1) Includes retail rate base, wholesale rate base, clause-related investments, and AFUDC projects 2) See Appendix for reconciliation of adjusted amounts to GAAP amounts 3) Annualized split-adjusted quarterly dividend; dividend declarations are subject to the discretion of the board of directors of NextEra Energy 4) Projected based upon dividend of $0.60 paid on March 15, 2012

We have a proven track record of building businesses and delivering growth

$1.16 $1.20 $1.30 $1.42 $1.50 $1.64 $1.78 $1.89 $2.00 $2.20 $2.40

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Dividends Per Share(3) Adjusted Earnings Per Share(2) Energy Resources Cumulative Wind Growth

(MW)

FPL Cumulative Capital Employed(1)

1,745 2,719 2,758 3,192 4,016 5,077 6,375 7,544 8,298 8,569

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11

$10.0 $10.8 $11.6 $12.3 $13.8 $14.8 $15.9 $17.7 $19.5 $21.7

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11

(4)

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Country Breakdown by Funding

NextEra has received approximately $15.6 billion(1) of credit, including commitments and funded transactions

We have a balanced and well-diversified lending group

US $2.9 billion U.S. $2.9 billion U.S. $3.1 billion Canada $1.5 billion China $0.5 billion France $1.3 billion Spain $1.4 billion UK $1.4 billion Italy $0.6 billion Switzerland $0.6 billion Germany $1.5 billion Japan $3.3 billion Taiwan $0.1 billion Norway $0.2 billion

1) $15.6 billion of credit includes current corporate credit facilities, term loans outstanding as of March 22, 2012, and original balances of project debt funded by banks since 2003

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• During the 1990s, a number of states adopted different

regulatory models to encourage competition among generators to serve retail customers

• Status of electricity restructuring

– 28 states did not restructure and remain regulated – 7 states suspended deregulation for several reasons including increased cost and environmental and reliability concerns – 15 states and the District of Columbia have deregulated, and a monopoly system of electric utilities has been replaced with competing sellers(1)

While the majority of states use “cost-of-service” ratemaking, a number of states have gone through deregulation

In the deregulated markets, the price for the generation portion of customers’ bills is set through a competitive process

History of State Deregulation

Source: Edison Electric Institute 1) Source: DOE, Energy Information Administration, status as of September 2010

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• Federal Energy Regulatory

Commission (FERC)

– FERC has also encouraged the formation of regional transmission organizations (RTOs) and Independent System Operators (ISOs) to

• versee electricity markets
• Nuclear Regulatory

Commission (NRC) Multiple regulators, at the federal and state level, govern rate setting, transmission, reliability, and environmental protection

Major Regulatory Agencies

• State agencies, typically known as the Public Utility

Commission (PUC) or Public Service Commission (PSC)

• Environmental Protection Agency (EPA)

Source: http://www.ferc.gov/industries/electric/indus-act/rto/rto-map.asp

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• Consists of five members selected for their knowledge and

experience in fields substantially related to the duties and functions of the Commission

– Commissioners are appointed by the Governor, and must also be confirmed by the Florida Senate

• Has the responsibility to set rates that are fair, just and
• reasonable. It is also required to set rates to allow

investors an opportunity to earn a reasonable return on their investment

• Ensure consumers receive electricity in a safe, affordable,

and reliable manner Florida is regulated by a state agency known as the Florida Public Service Commission

Florida Public Service Commission

Source: www.psc.state.fl.us

State-level regulation is all encompassing, balancing the needs of utilities and their shareholders with the needs of consumers

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• Base rates – designed to recover the costs of

constructing, operating, and maintaining a utility system

– Most of FPL’s return is earned through base rates

• Cost recovery clauses – recovery of certain costs and

provide a return on certain assets

– Fuel clause – facilitates the direct pass-through of fuel costs – Capacity clause Capacity payments to other utilities and generating companies for purchased power Pre-construction costs and carrying charges associated with nuclear uprates and exploring the option of new nuclear generation – Environmental clause FPL’s three solar generating facilities Implementation of energy conservation programs

FPL’s costs are recovered through base rates as well as through clause mechanisms

Cost Recovery Mechanisms

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FPL – Typical Residential Customer Bills(1)

Our investments in fuel-efficient generation and decreasing fuel costs have driven down the fuel portion of the typical customer bill

$108.61 $94.62 $0 $20 $40 $60 $80 $100 $120 2006 2012 Base Rate Fuel Other Monthly Bill

1) FPL’s typical residential monthly bill (1,000 kWh); 2012 bill reflects the quarterly average of January through March 2012

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Base Rate Settlement Agreement

FPL is currently under a settlement agreement entered into in 2010, which will provide an acceptable balance and certainty for

• ur customers and our shareholders though the end of 2012
• Retail base rates will remain effectively frozen through the

end of 2012

• Cost recovery for West County unit 3, which entered

service in 2011, is limited to the projected fuel savings for customers during the term of the agreement

• Authorized retail regulatory ROE is a 200 basis points

range up to 11%

• FPL will utilize the amortization of surplus depreciation to

maintain retail regulatory ROE between the 9% and 11% thresholds, subject to certain limits

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The commissioners, staff, and intervenors all participate in Florida utility rate cases

Florida Utility Rate Case – Key Participants

Intervenors Commissioners Staff

• Office of Public

Counsel (OPC)

• Florida Industrial

Power Users Group (FIPUG)

• South Florida

Hospital and Healthcare Assoc. (SFHHA)

• Florida Retail

Federation

• Other
• Chairman Ronald

Brise

• Lisa Edgar
• Eduardo Balbis
• Art Graham
• Julie Brown
• Professional staff

that provides recommendations to the commissioners

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Florida Unemployment Rate(1)

1) Source: Bureau of Labor Statistics, through April 2012 2) Source: Office of Economic and Demographic Research, through February 2012 3) Source: UF Bureau of Economic and Business Research, through April 2012 4) NAHB/Wells Fargo, through Q1 2012. Housing affordability for Florida metropolitan areas and U.S.; based on % of new and existing homes that are affordable to those making the median income in the given area

Florida Economy

Trends in Florida employment and housing affordability have shown improvement

$54 $56 $58 $60 $62 $64 $66 $68 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Housing Affordability Index(4) Florida Consumer Confidence(3) Tourism Taxable Sales(2)

(12-month moving sum)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2001 2003 2005 2007 2009 2011

National Cape Coral-Fort Myers Miami-Miami Beach-Kendall Deltona-Daytona Beach-Ormond Beach

$B

55 60 65 70 75 80 85 90 95 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 0% 2% 4% 6% 8% 10% 12% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

47 Source: FERC website as of 6/7/12 1) TVA: Tennessee Valley Authority

Renewable Portfolio Standard (RPS) Voluntary standards or goals Pilot or study

Renewable Portfolio Standards in the U.S.

HI: 40% by 2030 CA: 33% by 2020 OR: 25% by 2025 (5-10%

smaller util)

NV: 25% by 2025 AZ: 15% by 2025 UT: 20% by 2025 NM: 20% by 2020

(10% co-ops)

TX: 5,880 MW by 2015 OK: 15% by 2015 KS: 20% by 2020 NE: 10% by 2020 SD: 10% by 2015 ND: 10% by 2015 MT: 15% by 2015 CO: 30% by 2020

(10% co-ops)

WA: 15% by 2020 MO: 15% by 2021 IA: 105 MW MN: 25% by 2025

(Xcel 30% by 2020)

WI: 10% by 2015 IL: 25% by 2025

(wind 75% of RPS)

PA: 18% by 2020 NC: 12.5% by 2021 MI: 10% MWh & 1,100 MW by 2015 MD: 20% by 2022 DC: 20% by 2020 DE: 25% by 2025 NJ: 22.5% by 2020 VA: 15% by 2025 LA: 350 MW by 2012-13 CT: 23% by 2020 RI: 16% by 2020 NH: 23.8% by 2025 VT: 20% by 2017 NY: 30% by 2015 ME: 40% by 2017 MA: 15% by 2020 WV: 25% by 2025 TVA(1): 50% by 2020 OH: 12.5% by 2025 FL: solar pilot 2010-2014

Growth in renewable generation development has been fueled by Renewable Portfolio Standards (RPS)

IN: 10% by 2025

48

U.S. Federal Tax Incentives for Renewable Generation

• Production Tax Credit (PTC)

– Currently $22 per MWh for the first ten years of a wind energy facility’s operation – Expires at the end of 2012 Discussions for extension options are currently in process

• Convertible Investment Tax Credit (CITC or cash grant)

– Upfront cash payment of 30% of eligible capital costs associated with building wind or solar generation facilities Year 1 earnings impact of ~5.5% of capital costs – Wind generation credit expires at the end of 2012 – Solar generation credit expires at the end of 2016

• NextEra Energy’s 2014 earnings expectations assume no

new U.S. wind beyond the expiration of Federal tax incentives at the end of 2012

– Any extension would present upside opportunity

U.S. Federal tax incentives currently expire at the end of 2012 for wind generation and at the end of 2016 for solar generation

49 250 500 750 1,000

Solar Growth Outlook

• ~900 MW of new solar through 2016

– Spain Two 50 MW solar thermal units In service in 2013 – Genesis 250 MW solar thermal project In service in 2013 and 2014 – Desert Sunlight 550 MW solar photovoltaic project 50% owned by Energy Resources In service in 2013, 2014 and 2015 – McCoy 250 MW solar photovoltaic project In service by the end of 2016

Energy Resources’ backlog of new solar opportunities is significant and is expected to contribute meaningfully to adjusted earnings starting in 2013

Planned Solar Projects(1) with Long-Term Contracts

MW

1) Includes 5 MW already in service

Desert Sunlight McCoy Genesis Spain

Various PV

50

Wholesale Full Requirements

Energy Resources seeks to get the most out of its extensive capital investment in physical assets Capital Employed (YE 2011)

Competitive Retail Proprietary Trading Structured Products

Marketing & Trading Capability - Asset Optimization

Energy Resources Physical Generation Assets

Contribution to Adjusted EPS

(Average 2007 – 2011)

PMI/Retail 14.6% NEER less PMI/Retail 99.4% PMI/Retail 0.6% NEER less PMI/Retail 85.4%

51

Investor Relations Website

Last year, we revamped the Investor Relations website, making it a great source for company information

• You can find the IR home page here on the main www.nexteraenergy.com site:

52

Investor Relations Website – Home Page

The most current events and newly posted information will appear in the carousel at the top of the IR home page

53

You can access all of our quarterly earnings materials and listen to the webcast of the earnings call

Investor Relations Website – Earnings & Supplements

• Non-GAAP Reconciliations are

available under “Financial Statements”

• Earnings call webcast

and other materials can be accessed through the “Earnings Releases” section

54

Investor Relations Website – Other Resources

You can also download any recent presentation, FPL and NEER asset portfolios, and other information

• Under “Business

Updates,” you can find NEE’s full asset portfolio and wind resource performance, among other items

• All of the recent presentations are

available under “Event & Presentations”

55

($ millions)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net Income $791 $479 $903 $896 $901 $1,281 $1,312 $1,639 $1,615 $1,957 $1,923 Adjustments, net of income taxes: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges (8) (22) 3 112 (92) 86 (170) 20 (175) (190) Other than temporary impairment losses, net 1 6 76 13 (4) 6 Cumulative effect of change in accounting principle, net 222 3 Impairment/other charges, net 137 Merger-related expenses 19 14 Loss on sale of natural gas-fired generating assets 98 Adjusted Earnings $802 $838 $884 $899 $1,013 $1,204 $1,404 $1,545 $1,648 $1,778 $1,837

NextEra Energy, Inc. Reconciliation of Adjusted Earnings to Net Income

56

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Earnings Per Share (assuming dilution) $2.34 $1.38 $2.53 $2.48 $2.34 $3.23 $3.27 $4.07 $3.97 $4.74 $4.59 Adjustments: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges (0.02) (0.06) 0.01 0.29 (0.23) 0.21 (0.42) 0.05 (0.43) (0.45) Other than temporary impairment losses, net 0.01 0.19 0.03 (0.01) 0.01 Cumulative effect of change in accounting principle, net 0.64 0.01 Impairment/other charges, net 0.39 Merger-related expenses 0.06 0.04 Loss on sale of natural gas-fired generating assets 0.24 Adjusted Earnings Per Share $2.38 $2.41 $2.48 $2.49 $2.63 $3.04 $3.49 $3.84 $4.05 $4.30 $4.39

NextEra Energy, Inc. Reconciliation of Adjusted Earnings Per Share to Earnings Per Share

57

Reconciliation of 2011 Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) to Net Income

(Full-Year Ended December 31, 2011)

1) Includes net unrealized mark-to-market (gains) losses associated with non-qualifying hedges, other than temporary impairment losses, and charges resulting from the sale of the five natural gas-fired generating assets in two sale transactions - net and related tax impact. 2) Primarily consists of the pre-tax effect of production tax credits, investment tax credits and convertible investment tax credits and related amortization, and Energy Resources’ share of revenue and operating expenses of equity method investees in excess of GAAP equity in earnings.

GAAP Adjustments Adjusted Net income $1,923 ($86) (1) $1,837 Add back interest 1,034 1,034 Add back income taxes 529 (57) (1) 472 Add back depreciation & amortization 1,567 1,567 Other 738

(2)

738 EBITDA $5,053 $595 $5,648 FPL, Lonestar, Contracted $3,912 77% $517 $4,429 78% All other 1,141 23% 78 1,219 22% Total $5,053 100% $595 $5,648 100%

58

Cautionary Statement And Risk Factors That May Affect Future Results

This presentation 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

• utside of NextEra Energy's and FPL's control. Forward-looking statements in this presentation 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 likely result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “aim,” “potential,” “projection,” “forecast,” “predict,” “goals,” “target,” “outlook,” “should,” “would”

• r 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

• f 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

• n NextEra Energy and FPL; effect on NextEra Energy and FPL of potential regulatory action to broaden the scope of regulation of OTC financial derivatives and

to apply such regulation to NextEra Energy and FPL; capital expenditures, increased cost of operations and exposure to liabilities attributable to environmental laws and regulations 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;

59

Cautionary Statement And Risk Factors That May Affect Future Results (cont.)

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

• f 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 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 and FPL'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

• bligations 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, 2011 and other SEC filings, and this presentation should be read in conjunction with such SEC filings made through the date of this presentation. The forward-looking statements made in this presentation are made only as of the date of this presentation and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.