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| 8-K - 8-K DATED OCTOBER 28, 2015 - NEXTERA ENERGY INC | form8k10282015.htm |
Exhibit 99
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NextEra Energy, Inc. Media Line: (561) 694-4442 Oct. 28, 2015 FOR IMMEDIATE RELEASE | |
NextEra Energy reports 2015 third-quarter financial results
• | NextEra Energy delivers solid operational performance and financial results |
• | Florida Power & Light Company continues to invest in the business to provide customer benefits |
• | NextEra Energy Resources has another strong quarter in new wind and solar origination |
• | NextEra Energy authorizes program to purchase up to $150 million of outstanding common units of NextEra Energy Partners, LP |
JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2015 third-quarter net income attributable to NextEra Energy on a GAAP basis of $879 million, or $1.93 per share, compared to $660 million, or $1.50 per share, in the third quarter of 2014. On an adjusted basis, NextEra Energy’s 2015 third-quarter earnings were $730 million, or $1.60 per share, compared to $688 million, or $1.55 per share, in the third quarter of 2014.
Adjusted earnings for these periods 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 and operating results from the Spain solar project. Adjusted earnings also exclude merger-related expenses in 2015. All of these items, except for the merger-related expenses, relate primarily to the business of NextEra Energy Resources, LLC and its affiliated entities.
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 performance-based compensation under the company’s employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and 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 attributable to NextEra Energy, which is the most directly comparable GAAP measure.
“NextEra Energy delivered solid operational and financial performance for the third quarter,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “FPL performed well operationally, is on track this year to deliver its best-ever reliability performance and last week was recognized as the most reliable electric utility in the nation. Typical residential customer bills are now 30 percent below the national average, and FPL recently filed to reduce them further in 2016 by about $2.50 a month. NextEra Energy Resources added approximately 725 megawatts of new wind and solar projects to its backlog, continued a very strong year for new origination activity and is on pace to exceed its wind and solar origination expectations for 2016. Overall,
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NextEra Energy is on track to finish the year in the upper half of our previously stated range for adjusted earnings per share expectations of $5.40 to $5.70.”
Florida Power & Light Company
NextEra Energy’s principal rate-regulated electric utility subsidiary, Florida Power & Light Company (FPL), reported third-quarter 2015 net income of $489 million, or $1.07 per share, compared to $462 million, or $1.05 per share, for the prior-year quarter.
FPL’s contribution to adjusted earnings per share growth over the prior-year comparable quarter was driven primarily by continued investment in the business. The investments FPL is making continue to strengthen its value proposition that includes electric bills that are among the lowest in the nation, high reliability, award-winning customer service and one of the cleanest emissions profiles in America.
FPL’s long-term investments in more efficient power plants, coupled with low fuel prices, continue to generate savings for its customers. FPL owns and operates one of the cleanest and most fuel-efficient generation fleets in America, and the company’s investments since 2001 in fuel efficiency have saved customers more than $8 billion and prevented more than 95 million tons of carbon emissions. FPL’s typical residential customer bill is lower today than it was in 2006, is the lowest in Florida among reporting utilities and is among the lowest in the nation. In September, FPL filed a request with the Florida Public Service Commission (Florida PSC) to reduce rates beginning in January 2016. With Florida PSC approval, FPL’s typical residential monthly bill will decrease to approximately $94, reflecting savings of about $2.50 per month on average in 2016, compared to current rates.
During the quarter, FPL continued to make progress on its major capital projects. The company’s generation modernization project at Port Everglades remains on budget and on schedule to enter service in mid-2016. In addition, FPL’s development of three new large-scale solar energy centers remains on schedule, with each of these approximately 74-megawatt (MW) projects expected to be completed in 2016. Once complete, these plants will roughly triple FPL’s solar capacity and add to the overall fuel diversity of its fleet.
FPL also continued to invest in modernizing its electric grid, making it stronger, smarter and more resilient. Since 2006, FPL has invested more than $2 billion to strengthen its transmission and distribution system, positioning the company to deliver service reliability of more than 99.98 percent. FPL is on track to deliver its best-ever reliability performance this year and recently received several reliability-related awards, including being named as the nation’s most reliable electric utility by PA Consulting Group.
FPL averaged approximately 67,000 more customer accounts during the third quarter of 2015 than in the comparable prior-year quarter. Retail sales growth was 2.6 percent, compared to the prior-year quarter, which included approximately 1.4 percent usage growth due to weather. The average number of inactive accounts for the quarter declined 16 percent from the prior year.
FPL’s customer metrics are consistent with improving Florida economic indicators that the company tracks. In September, Florida’s seasonally adjusted unemployment rate was 5.2 percent, representing a 0.6 percentage point decrease from a year earlier and the lowest level since early 2008. Along with strong growth in jobs, July retail activity grew 8.6 percent since last year, increasing markedly since mid-2009.
During the quarter, FPL received approval from the Florida PSC and completed the acquisition of the Cedar Bay Generating Plant. In addition, FPL filed a petition for determination of need with the Florida PSC for the proposed high-efficiency Okeechobee Clean Energy Center. The
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approximately 1,600-MW combined-cycle power plant, fueled by clean, U.S.-produced natural gas, requires approval by a number of federal, state and local agencies. Contingent upon receiving all necessary approvals, FPL expects to begin construction in 2017, with the new plant entering service in mid-2019.
NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a third-quarter 2015 contribution to net income attributable to NextEra Energy on a GAAP basis of $375 million, or $0.82 per share, compared to $204 million, or $0.46 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources’ earnings for the third quarter of 2015 were $221 million, or $0.48 per share, compared to $231 million, or $0.52 per share, for the third quarter of 2014.
NextEra Energy Resources’ contribution to adjusted earnings per share in the third quarter of 2015 decreased $0.04 per share, compared to the prior-year comparable quarter. Overall, the business’ results were consistent with its financial expectations for the quarter, and NextEra Energy Resources remains on pace to achieve its full-year expectations. NextEra Energy Resources benefited from continued growth in its contracted renewables portfolio, reflecting the addition of more than 1,900 MW of wind and solar projects during or after the third quarter of 2014. The customer supply and trading business and the existing generation assets both had strong results. Offsetting the positives, among other things, were higher interest expense due to growth in the business and higher corporate expenses due largely to timing differences and increased renewables development activity in light of what NextEra Energy Resources considers to be a very positive landscape for the renewables business. Results also were impacted by share dilution and lower state and federal tax incentives versus the prior-year comparable quarter.
NextEra Energy Resources had another excellent quarter of originating new renewables projects. The business signed power purchase agreements for approximately 725 MW of new wind and solar projects, including 600 MW of wind for delivery by the end of 2016 and 125 MW of solar for post-2016 delivery. Based on the strength of its wind development pipeline, NextEra Energy Resources now expects to exceed the high end of its previously announced 2015 to 2016 wind build range.
Corporate and Other
In the third quarter of 2015, Corporate and Other adjusted earnings per share increased $0.07, compared to the prior-year quarter.
The company’s natural gas pipeline projects, Sabal Trail Transmission and Florida Southeast Connection, continue to progress well through the development process. Federal Energy Regulatory Commission (FERC) decisions are expected for both projects in early 2016, with construction of the proposed interstate pipeline system beginning in 2016 and operations commencing in mid-2017.
Earlier this month, the company’s Mountain Valley Pipeline joint venture announced the addition of RGC Midstream, LLC as an equity partner and its affiliate, Roanoke Gas Company, as a shipper on the pipeline. The Mountain Valley Pipeline joint venture also recently filed a formal application with FERC requesting authorization to build the 301-mile interstate natural gas transmission pipeline that is designed to transport clean-burning natural gas from the Marcellus and Utica shale regions to the growing demand markets in the U.S. Mid-Atlantic and Southeast. The proposed Mountain Valley Pipeline is expected to begin commercial operations by year-end 2018, subject to FERC approval. Mountain Valley Pipeline, LLC is a joint venture of EQT Midstream Partners, LP, and affiliates of NextEra Energy, WGL Holdings, Inc., Vega Energy Partners, Ltd. and RGC Resources, Inc.
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NextEra Energy authorizes a program to purchase up to $150 million of NextEra Energy Partners’ outstanding common units
NextEra Energy has authorized a program to purchase, from time to time, subject to market conditions and other considerations, up to $150 million of NextEra Energy Partners’ outstanding common units. The common unit purchase program will not require NextEra Energy to acquire any specific number of common units and may be modified or terminated by NextEra Energy at any time.
Outlook
NextEra Energy expects full-year 2015 adjusted earnings per share to be in the upper half of the range of $5.40 to $5.70. After 2015, NextEra Energy expects to grow adjusted earnings per share at a compound annual growth rate of 6 to 8 percent per year through 2018, off a 2014 base. NextEra Energy continues to expect adjusted earnings per share to be in the range of $5.85 to $6.35 for 2016 and in the range of $6.60 to $7.10 for 2018.
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. Adjusted earnings expectations also exclude the operating results from the Spain solar project and merger-related expenses. 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; current forward curves; 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 divestitures other than NextEra Energy Partners, LP or acquisitions; 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 today. Also discussed during the call will be financial results for NextEra Energy Partners, LP (NYSE: NEP). The webcast will be available on NextEra Energy’s website by accessing the following link: www.NextEraEnergy.com/investors. The slides and news release accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors, beginning at 7:30 a.m. ET today. 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 $17.0 billion, approximately 44,900 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), and approximately 13,800 employees in 27 states and Canada as of year-end 2014. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves approximately 4.8 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 world’s largest generator 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. NextEra Energy has been
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recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been ranked in the top 10 worldwide for innovativeness and community responsibility as part of Fortune’s 2015 list of “World's Most Admired Companies.” 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 press release include, among others, statements concerning adjusted earnings per share expectations and future operating performance, and statements concerning future dividends. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “may 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 and their business and financial condition 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, or may require them to limit or eliminate certain operations. 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 a reasonable return on invested 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; 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 utility scale renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional taxes or assessments on renewable energy; 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; 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; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low gas and oil prices could impact NextEra Energy Resources’ gas infrastructure business and cause NextEra Energy Resources to delay or cancel certain gas infrastructure projects and for certain existing projects to be impaired; 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 manage properly or hedge effectively the commodity risk within its portfolio; 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 risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; 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
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credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from 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, including the effect of increased competition for acquisitions; NextEra Energy Partners, LP's (NEP's) acquisitions may not be completed and, even if completed, NextEra Energy may not realize the anticipated benefits of any acquisitions; environmental, health and financial risks associated with NextEra Energy's and FPL's ownership and operation 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, and increased public attention to 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; 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 pay 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; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; 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, 2014 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, 2015 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Operating Revenues | $ | 3,274 | $ | 1,585 | $ | 95 | $ | 4,954 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel, purchased power and interchange | 1,195 | 260 | 17 | 1,472 | ||||||||||||
Other operations and maintenance | 410 | 377 | 32 | 819 | ||||||||||||
Merger-related | — | — | 7 | 7 | ||||||||||||
Depreciation and amortization | 485 | 295 | 18 | 798 | ||||||||||||
Taxes other than income taxes and other | 329 | 40 | 8 | 377 | ||||||||||||
Total operating expenses | 2,419 | 972 | 82 | 3,473 | ||||||||||||
Operating Income | 855 | 613 | 13 | 1,481 | ||||||||||||
Other Income (Deductions) | ||||||||||||||||
Interest expense | (110 | ) | (166 | ) | (35 | ) | (311 | ) | ||||||||
Benefits associated with differential membership interests - net | — | 40 | — | 40 | ||||||||||||
Equity in earnings of equity method investees | — | 44 | 7 | 51 | ||||||||||||
Allowance for equity funds used during construction | 20 | — | — | 20 | ||||||||||||
Interest income | 1 | 8 | 13 | 22 | ||||||||||||
Gains on disposal of assets - net | — | 15 | — | 15 | ||||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (24 | ) | — | (24 | ) | ||||||||||
Other - net | (3 | ) | 10 | 1 | 8 | |||||||||||
Total other deductions - net | (92 | ) | (73 | ) | (14 | ) | (179 | ) | ||||||||
Income (Loss) before Income Taxes | 763 | 540 | (1 | ) | 1,302 | |||||||||||
Income Tax Expense (Benefit) | 274 | 163 | (16 | ) | 421 | |||||||||||
Net Income (Loss) | 489 | 377 | 15 | 881 | ||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (2 | ) | — | (2 | ) | ||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 489 | $ | 375 | $ | 15 | $ | 879 | ||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 489 | $ | 375 | $ | 15 | $ | 879 | ||||||||
Adjustments, net of income taxes: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (158 | ) | — | (158 | ) | ||||||||||
Loss (income) from other than temporary impairments - net | — | 13 | — | 13 | ||||||||||||
Operating loss (income) of Spain solar projects | — | (9 | ) | — | (9 | ) | ||||||||||
Merger-related expenses | — | — | 5 | 5 | ||||||||||||
Adjusted Earnings (Loss) | $ | 489 | $ | 221 | $ | 20 | $ | 730 | ||||||||
Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution) | $ | 1.07 | $ | 0.82 | $ | 0.04 | $ | 1.93 | ||||||||
Adjustments: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (0.35 | ) | — | (0.35 | ) | ||||||||||
Loss (income) from other than temporary impairments - net | — | 0.03 | — | 0.03 | ||||||||||||
Operating loss (income) of Spain solar projects | — | (0.02 | ) | — | (0.02 | ) | ||||||||||
Merger-related expenses | — | — | 0.01 | 0.01 | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 1.07 | $ | 0.48 | $ | 0.05 | $ | 1.60 | ||||||||
Weighted-average shares outstanding (assuming dilution) | 456 | |||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Operating Revenues | $ | 3,315 | $ | 1,242 | $ | 97 | $ | 4,654 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel, purchased power and interchange | 1,255 | 292 | 19 | 1,566 | ||||||||||||
Other operations and maintenance | 414 | 325 | 33 | 772 | ||||||||||||
Merger-related | — | — | — | — | ||||||||||||
Depreciation and amortization | 489 | 275 | 18 | 782 | ||||||||||||
Taxes other than income taxes and other | 323 | 43 | 5 | 371 | ||||||||||||
Total operating expenses | 2,481 | 935 | 75 | 3,491 | ||||||||||||
Operating Income | 834 | 307 | 22 | 1,163 | ||||||||||||
Other Income (Deductions) | ||||||||||||||||
Interest expense | (112 | ) | (167 | ) | (37 | ) | (316 | ) | ||||||||
Benefits associated with differential membership interests - net | — | 23 | — | 23 | ||||||||||||
Equity in earnings of equity method investees | — | 39 | (1 | ) | 38 | |||||||||||
Allowance for equity funds used during construction | 7 | — | — | 7 | ||||||||||||
Interest income | — | 6 | 12 | 18 | ||||||||||||
Gains on disposal of assets - net | — | 12 | — | 12 | ||||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (4 | ) | — | (4 | ) | ||||||||||
Other - net | — | 7 | (5 | ) | 2 | |||||||||||
Total other deductions - net | (105 | ) | (84 | ) | (31 | ) | (220 | ) | ||||||||
Income (Loss) before Income Taxes | 729 | 223 | (9 | ) | 943 | |||||||||||
Income Tax Expense (Benefit) | 267 | 15 | (3 | ) | 279 | |||||||||||
Net Income (Loss) | 462 | 208 | (6 | ) | 664 | |||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (4 | ) | — | (4 | ) | ||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 462 | $ | 204 | $ | (6 | ) | $ | 660 | |||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 462 | $ | 204 | $ | (6 | ) | $ | 660 | |||||||
Adjustments, net of income taxes: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 11 | (1 | ) | 10 | |||||||||||
Loss (income) from other than temporary impairments - net | — | 2 | 2 | 4 | ||||||||||||
Operating loss (income) of Spain solar projects | — | 14 | — | 14 | ||||||||||||
Merger-related expenses | — | — | — | — | ||||||||||||
Adjusted Earnings (Loss) | $ | 462 | $ | 231 | $ | (5 | ) | $ | 688 | |||||||
Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution) | $ | 1.05 | $ | 0.46 | $ | (0.01 | ) | $ | 1.50 | |||||||
Adjustments: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 0.03 | (0.01 | ) | 0.02 | |||||||||||
Loss (income) from other than temporary impairments - net | — | — | — | — | ||||||||||||
Operating loss (income) of Spain solar projects | — | 0.03 | — | 0.03 | ||||||||||||
Merger-related expenses | — | — | — | — | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 1.05 | $ | 0.52 | $ | (0.02 | ) | $ | 1.55 | |||||||
Weighted-average shares outstanding (assuming dilution) | 440 | |||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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, 2015 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Operating Revenues | $ | 8,812 | $ | 4,310 | $ | 295 | $ | 13,417 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel, purchased power and interchange | 3,298 | 804 | 49 | 4,151 | ||||||||||||
Other operations and maintenance | 1,147 | 1,115 | 91 | 2,353 | ||||||||||||
Merger-related | — | — | 20 | 20 | ||||||||||||
Depreciation and amortization | 1,154 | 874 | 54 | 2,082 | ||||||||||||
Taxes other than income taxes and other | 910 | 122 | 22 | 1,054 | ||||||||||||
Total operating expenses | 6,509 | 2,915 | 236 | 9,660 | ||||||||||||
Operating Income | 2,303 | 1,395 | 59 | 3,757 | ||||||||||||
Other Income (Deductions) | ||||||||||||||||
Interest expense | (337 | ) | (469 | ) | (106 | ) | (912 | ) | ||||||||
Benefits associated with differential membership interests - net | — | 151 | — | 151 | ||||||||||||
Equity in earnings of equity method investees | — | 76 | 11 | 87 | ||||||||||||
Allowance for equity funds used during construction | 46 | — | 2 | 48 | ||||||||||||
Interest income | 3 | 23 | 39 | 65 | ||||||||||||
Gains on disposal of assets - net | — | 42 | — | 42 | ||||||||||||
Gain associated with Maine fossil | — | — | — | — | ||||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (32 | ) | — | (32 | ) | ||||||||||
Other - net | (4 | ) | 28 | 3 | 27 | |||||||||||
Total other deductions - net | (292 | ) | (181 | ) | (51 | ) | (524 | ) | ||||||||
Income (Loss) before Income Taxes | 2,011 | 1,214 | 8 | 3,233 | ||||||||||||
Income Tax Expense (Benefit) | 728 | 280 | (27 | ) | 981 | |||||||||||
Net Income (Loss) | 1,283 | 934 | 35 | 2,252 | ||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (7 | ) | — | (7 | ) | ||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,283 | $ | 927 | $ | 35 | $ | 2,245 | ||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,283 | $ | 927 | $ | 35 | $ | 2,245 | ||||||||
Adjustments, net of income taxes: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (203 | ) | (7 | ) | (210 | ) | |||||||||
Loss (income) from other than temporary impairments - net | — | 14 | — | 14 | ||||||||||||
Gain associated with Maine fossil | — | — | — | — | ||||||||||||
Operating loss (income) of Spain solar projects | — | (5 | ) | — | (5 | ) | ||||||||||
Merger-related expenses | — | — | 16 | 16 | ||||||||||||
Adjusted Earnings (Loss) | $ | 1,283 | $ | 733 | $ | 44 | $ | 2,060 | ||||||||
Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution) | $ | 2.84 | $ | 2.05 | $ | 0.08 | $ | 4.97 | ||||||||
Adjustments: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (0.45 | ) | (0.02 | ) | (0.47 | ) | |||||||||
Loss (income) from other than temporary impairments - net | — | 0.03 | — | 0.03 | ||||||||||||
Gain associated with Maine fossil | — | — | — | — | ||||||||||||
Operating loss (income) of Spain solar projects | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Merger-related expenses | — | — | 0.03 | 0.03 | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 2.84 | $ | 1.62 | $ | 0.09 | $ | 4.55 | ||||||||
Weighted-average shares outstanding (assuming dilution) | 451 | |||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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 Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary | ||||||||||||||||
Nine Months Ended September 30, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Operating Revenues | $ | 8,739 | $ | 3,312 | $ | 306 | $ | 12,357 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel, purchased power and interchange | 3,367 | 903 | 67 | 4,337 | ||||||||||||
Other operations and maintenance | 1,186 | 1,014 | 96 | 2,296 | ||||||||||||
Merger-related | — | — | — | — | ||||||||||||
Depreciation and amortization | 1,046 | 761 | 52 | 1,859 | ||||||||||||
Taxes other than income taxes and other | 892 | 104 | 16 | 1,012 | ||||||||||||
Total operating expenses | 6,491 | 2,782 | 231 | 9,504 | ||||||||||||
Operating Income | 2,248 | 530 | 75 | 2,853 | ||||||||||||
Other Income (Deductions) | ||||||||||||||||
Interest expense | (325 | ) | (496 | ) | (119 | ) | (940 | ) | ||||||||
Benefits associated with differential membership interests - net | — | 146 | — | 146 | ||||||||||||
Equity in earnings of equity method investees | — | 61 | (1 | ) | 60 | |||||||||||
Allowance for equity funds used during construction | 27 | — | 1 | 28 | ||||||||||||
Interest income | 2 | 19 | 39 | 60 | ||||||||||||
Gains on disposal of assets - net | — | 88 | 1 | 89 | ||||||||||||
Gain associated with Maine fossil | — | 21 | — | 21 | ||||||||||||
Other than temporary impairment losses on securities held in nuclear decommissioning funds | — | (8 | ) | — | (8 | ) | ||||||||||
Other - net | (1 | ) | 30 | (30 | ) | (1 | ) | |||||||||
Total other deductions - net | (297 | ) | (139 | ) | (109 | ) | (545 | ) | ||||||||
Income (Loss) before Income Taxes | 1,951 | 391 | (34 | ) | 2,308 | |||||||||||
Income Tax Expense (Benefit) | 720 | 16 | (13 | ) | 723 | |||||||||||
Net Income (Loss) | 1,231 | 375 | (21 | ) | 1,585 | |||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (4 | ) | — | (4 | ) | ||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,231 | $ | 371 | $ | (21 | ) | $ | 1,581 | |||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,231 | $ | 371 | $ | (21 | ) | $ | 1,581 | |||||||
Adjustments, net of income taxes: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 274 | 9 | 283 | ||||||||||||
Loss (income) from other than temporary impairments - net | — | (1 | ) | 2 | 1 | |||||||||||
Gain associated with Maine fossil | — | (12 | ) | — | (12 | ) | ||||||||||
Operating loss (income) of Spain solar projects | — | 22 | — | 22 | ||||||||||||
Merger-related expenses | — | — | — | — | ||||||||||||
Adjusted Earnings (Loss) | $ | 1,231 | $ | 654 | $ | (10 | ) | $ | 1,875 | |||||||
Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution) | $ | 2.80 | $ | 0.84 | $ | (0.04 | ) | $ | 3.60 | |||||||
Adjustments: | ||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 0.62 | 0.02 | 0.64 | ||||||||||||
Loss (income) from other than temporary impairments - net | — | — | — | — | ||||||||||||
Gain associated with Maine fossil | — | (0.03 | ) | — | (0.03 | ) | ||||||||||
Operating loss (income) of Spain solar projects | — | 0.05 | — | 0.05 | ||||||||||||
Merger-related expenses | — | — | — | — | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 2.80 | $ | 1.48 | $ | (0.02 | ) | $ | 4.26 | |||||||
Weighted-average shares outstanding (assuming dilution) | 440 | |||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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. | ||||||||||||||||
10
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
Preliminary | ||||||||||||||||
September 30, 2015 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Electric plant in service and other property | $ | 40,217 | $ | 29,010 | $ | 1,529 | $ | 70,756 | ||||||||
Nuclear fuel | 1,352 | 879 | — | 2,231 | ||||||||||||
Construction work in progress | 2,685 | 3,444 | 89 | 6,218 | ||||||||||||
Less accumulated depreciation and amortization | (11,734 | ) | (7,209 | ) | (427 | ) | (19,370 | ) | ||||||||
Total property, plant and equipment - net | 32,520 | 26,124 | 1,191 | 59,835 | ||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | 30 | 1,105 | 46 | 1,181 | ||||||||||||
Customer receivables, net of allowances | 1,027 | 854 | 80 | 1,961 | ||||||||||||
Other receivables | 112 | 619 | (382 | ) | 349 | |||||||||||
Materials, supplies and fossil fuel inventory | 887 | 452 | 5 | 1,344 | ||||||||||||
Regulatory assets: | ||||||||||||||||
Deferred clause and franchise expenses | 135 | — | — | 135 | ||||||||||||
Derivatives | 212 | — | — | 212 | ||||||||||||
Other | 208 | — | 1 | 209 | ||||||||||||
Derivatives | 4 | 628 | 22 | 654 | ||||||||||||
Deferred income taxes | — | 10 | — | 10 | ||||||||||||
Other | 195 | 408 | (1 | ) | 602 | |||||||||||
Total current assets | 2,810 | 4,076 | (229 | ) | 6,657 | |||||||||||
Other Assets | ||||||||||||||||
Special use funds | 3,435 | 1,588 | 1 | 5,024 | ||||||||||||
Other investments | 4 | 725 | 1,052 | 1,781 | ||||||||||||
Prepaid benefit costs | 1,230 | — | 73 | 1,303 | ||||||||||||
Regulatory assets: | ||||||||||||||||
Purchased power agreement termination | 749 | — | — | 749 | ||||||||||||
Securitized storm-recovery costs | 225 | — | — | 225 | ||||||||||||
Other | 584 | — | 168 | 752 | ||||||||||||
Derivatives | 1 | 1,277 | 26 | 1,304 | ||||||||||||
Other | 344 | 1,769 | 220 | 2,333 | ||||||||||||
Total other assets | 6,572 | 5,359 | 1,540 | 13,471 | ||||||||||||
Total Assets | $ | 41,902 | $ | 35,559 | $ | 2,502 | $ | 79,963 | ||||||||
Capitalization | ||||||||||||||||
Common stock | $ | 1,373 | $ | — | $ | (1,368 | ) | $ | 5 | |||||||
Additional paid-in capital | 7,732 | 8,632 | (7,870 | ) | 8,494 | |||||||||||
Retained earnings | 6,783 | 7,940 | (736 | ) | 13,987 | |||||||||||
Accumulated other comprehensive loss | — | (103 | ) | (65 | ) | (168 | ) | |||||||||
Total common shareholders' equity | 15,888 | 16,469 | (10,039 | ) | 22,318 | |||||||||||
Noncontrolling interests | — | 508 | — | 508 | ||||||||||||
Total equity | 15,888 | 16,977 | (10,039 | ) | 22,826 | |||||||||||
Long-term debt | 9,037 | 6,512 | 10,055 | 25,604 | ||||||||||||
Total capitalization | 24,925 | 23,489 | 16 | 48,430 | ||||||||||||
Current Liabilities | ||||||||||||||||
Commercial paper | 246 | — | 780 | 1,026 | ||||||||||||
Notes payable | — | 12 | 1,125 | 1,137 | ||||||||||||
Current maturities of long-term debt | 62 | 1,843 | 592 | 2,497 | ||||||||||||
Accounts payable | 719 | 1,175 | (24 | ) | 1,870 | |||||||||||
Customer deposits | 464 | 4 | — | 468 | ||||||||||||
Accrued interest and taxes | 975 | 231 | (323 | ) | 883 | |||||||||||
Derivatives | 216 | 505 | 13 | 734 | ||||||||||||
Accrued construction-related expenditures | 183 | 737 | 9 | 929 | ||||||||||||
Other | 350 | 443 | 34 | 827 | ||||||||||||
Total current liabilities | 3,215 | 4,950 | 2,206 | 10,371 | ||||||||||||
Other Liabilities and Deferred Credits | ||||||||||||||||
Asset retirement obligations | 1,415 | 686 | — | 2,101 | ||||||||||||
Deferred income taxes | 7,276 | 2,439 | (148 | ) | 9,567 | |||||||||||
Regulatory liabilities: | ||||||||||||||||
Accrued asset removal costs | 1,996 | — | 9 | 2,005 | ||||||||||||
Asset retirement obligation regulatory expense difference | 2,131 | — | — | 2,131 | ||||||||||||
Other | 502 | — | — | 502 | ||||||||||||
Derivatives | 19 | 446 | 144 | 609 | ||||||||||||
Deferral related to differential membership interests | — | 2,537 | — | 2,537 | ||||||||||||
Other | 423 | 1,012 | 275 | 1,710 | ||||||||||||
Total other liabilities and deferred credits | 13,762 | 7,120 | 280 | 21,162 | ||||||||||||
Commitments and Contingencies | ||||||||||||||||
Total Capitalization and Liabilities | $ | 41,902 | $ | 35,559 | $ | 2,502 | $ | 79,963 | ||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Electric plant in service and other property | $ | 39,027 | $ | 27,526 | $ | 1,489 | $ | 68,042 | ||||||||
Nuclear fuel | 1,217 | 788 | 1 | 2,006 | ||||||||||||
Construction work in progress | 1,694 | 1,841 | 56 | 3,591 | ||||||||||||
Less accumulated depreciation and amortization | (11,282 | ) | (6,268 | ) | (384 | ) | (17,934 | ) | ||||||||
Total property, plant and equipment - net | 30,656 | 23,887 | 1,162 | 55,705 | ||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | 14 | 536 | 27 | 577 | ||||||||||||
Customer receivables, net of allowances | 773 | 972 | 60 | 1,805 | ||||||||||||
Other receivables | 136 | 266 | (48 | ) | 354 | |||||||||||
Materials, supplies and fossil fuel inventory | 848 | 439 | 5 | 1,292 | ||||||||||||
Regulatory assets: | ||||||||||||||||
Deferred clause and franchise expenses | 268 | — | — | 268 | ||||||||||||
Derivatives | 364 | — | — | 364 | ||||||||||||
Other | 111 | — | 5 | 116 | ||||||||||||
Derivatives | 5 | 955 | 30 | 990 | ||||||||||||
Deferred income taxes | — | 699 | 40 | 739 | ||||||||||||
Other | 115 | 321 | 3 | 439 | ||||||||||||
Total current assets | 2,634 | 4,188 | 122 | 6,944 | ||||||||||||
Other Assets | ||||||||||||||||
Special use funds | 3,524 | 1,642 | — | 5,166 | ||||||||||||
Other investments | 4 | 555 | 840 | 1,399 | ||||||||||||
Prepaid benefit costs | 1,189 | — | 55 | 1,244 | ||||||||||||
Regulatory assets: | ||||||||||||||||
Purchased power agreement termination | — | — | — | — | ||||||||||||
Securitized storm-recovery costs | 294 | — | — | 294 | ||||||||||||
Other | 468 | — | 189 | 657 | ||||||||||||
Derivatives | 1 | 1,008 | — | 1,009 | ||||||||||||
Other | 537 | 1,639 | 335 | 2,511 | ||||||||||||
Total other assets | 6,017 | 4,844 | 1,419 | 12,280 | ||||||||||||
Total Assets | $ | 39,307 | $ | 32,919 | $ | 2,703 | $ | 74,929 | ||||||||
Capitalization | ||||||||||||||||
Common stock | $ | 1,373 | $ | — | $ | (1,369 | ) | $ | 4 | |||||||
Additional paid-in capital | 6,279 | 7,989 | (7,089 | ) | 7,179 | |||||||||||
Retained earnings | 5,499 | 7,013 | 261 | 12,773 | ||||||||||||
Accumulated other comprehensive loss | — | (5 | ) | (35 | ) | (40 | ) | |||||||||
Total common shareholders' equity | 13,151 | 14,997 | (8,232 | ) | 19,916 | |||||||||||
Noncontrolling interests | — | 252 | — | 252 | ||||||||||||
Total equity | 13,151 | 15,249 | (8,232 | ) | 20,168 | |||||||||||
Long-term debt | 9,413 | 6,199 | 8,755 | 24,367 | ||||||||||||
Total capitalization | 22,564 | 21,448 | 523 | 44,535 | ||||||||||||
Current Liabilities | ||||||||||||||||
Commercial paper | 1,142 | — | — | 1,142 | ||||||||||||
Notes payable | — | — | — | — | ||||||||||||
Current maturities of long-term debt | 60 | 1,668 | 1,787 | 3,515 | ||||||||||||
Accounts payable | 647 | 692 | 15 | 1,354 | ||||||||||||
Customer deposits | 458 | 4 | — | 462 | ||||||||||||
Accrued interest and taxes | 245 | 246 | (17 | ) | 474 | |||||||||||
Derivatives | 370 | 906 | 13 | 1,289 | ||||||||||||
Accrued construction-related expenditures | 233 | 437 | 6 | 676 | ||||||||||||
Other | 331 | 400 | 20 | 751 | ||||||||||||
Total current liabilities | 3,486 | 4,353 | 1,824 | 9,663 | ||||||||||||
Other Liabilities and Deferred Credits | ||||||||||||||||
Asset retirement obligations | 1,355 | 631 | — | 1,986 | ||||||||||||
Deferred income taxes | 6,835 | 2,424 | 2 | 9,261 | ||||||||||||
Regulatory liabilities: | ||||||||||||||||
Accrued asset removal costs | 1,898 | — | 6 | 1,904 | ||||||||||||
Asset retirement obligation regulatory expense difference | 2,257 | — | — | 2,257 | ||||||||||||
Other | 476 | — | — | 476 | ||||||||||||
Derivatives | — | 342 | 124 | 466 | ||||||||||||
Deferral related to differential membership interests | — | 2,704 | — | 2,704 | ||||||||||||
Other | 436 | 1,017 | 224 | 1,677 | ||||||||||||
Total other liabilities and deferred credits | 13,257 | 7,118 | 356 | 20,731 | ||||||||||||
Commitments and Contingencies | ||||||||||||||||
Total Capitalization and Liabilities | $ | 39,307 | $ | 32,919 | $ | 2,703 | $ | 74,929 | ||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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. | ||||||||||||||||
12
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
Preliminary | ||||||||||||||||
Nine Months Ended September 30, 2015 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net income (loss) | $ | 1,283 | $ | 934 | $ | 35 | $ | 2,252 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 1,154 | 874 | 54 | 2,082 | ||||||||||||
Nuclear fuel and other amortization | 160 | 105 | 15 | 280 | ||||||||||||
Unrealized losses (gains) on marked to market energy contracts | — | (393 | ) | — | (393 | ) | ||||||||||
Deferred income taxes | 107 | 851 | (110 | ) | 848 | |||||||||||
Cost recovery clauses and franchise fees | 114 | — | — | 114 | ||||||||||||
Purchased power agreement termination | (521 | ) | — | — | (521 | ) | ||||||||||
Benefits associated with differential membership interests - net | — | (151 | ) | — | (151 | ) | ||||||||||
Allowance for equity funds used during construction | (46 | ) | — | (2 | ) | (48 | ) | |||||||||
Losses (gains) on disposal of assets - net | — | (40 | ) | 1 | (39 | ) | ||||||||||
Gain associated with Maine fossil | — | — | — | — | ||||||||||||
Other - net | 54 | 36 | 43 | 133 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Customer and other receivables | (250 | ) | 180 | (53 | ) | (123 | ) | |||||||||
Materials, supplies and fossil fuel inventory | (39 | ) | (13 | ) | — | (52 | ) | |||||||||
Other current assets | (49 | ) | (10 | ) | 3 | (56 | ) | |||||||||
Other assets | (41 | ) | 30 | (17 | ) | (28 | ) | |||||||||
Accounts payable and customer deposits | 32 | (161 | ) | (2 | ) | (131 | ) | |||||||||
Margin cash collateral | — | (79 | ) | — | (79 | ) | ||||||||||
Income taxes | 366 | (434 | ) | 113 | 45 | |||||||||||
Interest and other taxes | 357 | 18 | 11 | 386 | ||||||||||||
Other current liabilities | 28 | — | 55 | 83 | ||||||||||||
Other liabilities | (41 | ) | (40 | ) | (8 | ) | (89 | ) | ||||||||
Net cash provided by operating activities | 2,668 | 1,707 | 138 | 4,513 | ||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||
Capital expenditures of FPL | (2,440 | ) | — | — | (2,440 | ) | ||||||||||
Independent power and other investments of NEER | — | (2,693 | ) | — | (2,693 | ) | ||||||||||
Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 6 | — | 6 | ||||||||||||
Nuclear fuel purchases | (178 | ) | (132 | ) | — | (310 | ) | |||||||||
Other capital expenditures and other investments | — | — | (233 | ) | (233 | ) | ||||||||||
Sale of independent power and other investments of NEER | — | 34 | — | 34 | ||||||||||||
Proceeds from sale or maturity of securities in special use funds and other investments | 3,099 | 548 | 104 | 3,751 | ||||||||||||
Purchases of securities in special use funds and other investments | (3,149 | ) | (572 | ) | (151 | ) | (3,872 | ) | ||||||||
Proceeds from the sale of a noncontrolling interest in subsidiaries | — | 319 | — | 319 | ||||||||||||
Other - net | (86 | ) | 47 | — | (39 | ) | ||||||||||
Net cash used in investing activities | (2,754 | ) | (2,443 | ) | (280 | ) | (5,477 | ) | ||||||||
Cash Flows From Financing Activities | ||||||||||||||||
Issuances of long-term debt | 85 | 1,827 | 1,550 | 3,462 | ||||||||||||
Retirements of long-term debt | (550 | ) | (1,075 | ) | (1,472 | ) | (3,097 | ) | ||||||||
Net change in short-term debt | (896 | ) | 12 | 1,905 | 1,021 | |||||||||||
Issuances of common stock - net | — | — | 1,274 | 1,274 | ||||||||||||
Dividends on common stock | — | — | (1,031 | ) | (1,031 | ) | ||||||||||
Dividends & capital distributions from (to) parent - net | 1,454 | 610 | (2,064 | ) | — | |||||||||||
Other - net | 9 | (69 | ) | (1 | ) | (61 | ) | |||||||||
Net cash provided by (used in) financing activities | 102 | 1,305 | 161 | 1,568 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 16 | 569 | 19 | 604 | ||||||||||||
Cash and cash equivalents at beginning of period | 14 | 536 | 27 | 577 | ||||||||||||
Cash and cash equivalents at end of period | $ | 30 | $ | 1,105 | $ | 46 | $ | 1,181 | ||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net income (loss) | $ | 1,231 | $ | 375 | $ | (21 | ) | $ | 1,585 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 1,046 | 761 | 52 | 1,859 | |||||||||||||
Nuclear fuel and other amortization | 149 | 93 | 17 | 259 | |||||||||||||
Unrealized losses (gains) on marked to market energy contracts | — | 279 | 2 | 281 | |||||||||||||
Deferred income taxes | 249 | 240 | 227 | 716 | |||||||||||||
Cost recovery clauses and franchise fees | (93 | ) | — | — | (93 | ) | |||||||||||
Purchased power agreement termination | — | — | — | — | |||||||||||||
Benefits associated with differential membership interests - net | — | (146 | ) | — | (146 | ) | |||||||||||
Allowance for equity funds used during construction | (27 | ) | — | (1 | ) | (28 | ) | ||||||||||
Losses (gains) on disposal of assets - net | — | (88 | ) | (1 | ) | (89 | ) | ||||||||||
Gain associated with Maine fossil | — | (21 | ) | — | (21 | ) | |||||||||||
Other - net | 114 | 65 | 80 | 259 | |||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Customer and other receivables | (288 | ) | 37 | (12 | ) | (263 | ) | ||||||||||
Materials, supplies and fossil fuel inventory | (92 | ) | (18 | ) | (2 | ) | (112 | ) | |||||||||
Other current assets | (33 | ) | (36 | ) | 4 | (65 | ) | ||||||||||
Other assets | (92 | ) | (70 | ) | (20 | ) | (182 | ) | |||||||||
Accounts payable and customer deposits | 90 | 59 | (2 | ) | 147 | ||||||||||||
Margin cash collateral | — | (321 | ) | — | (321 | ) | |||||||||||
Income taxes | 391 | (234 | ) | (187 | ) | (30 | ) | ||||||||||
Interest and other taxes | 343 | 20 | 15 | 378 | |||||||||||||
Other current liabilities | (92 | ) | (49 | ) | (8 | ) | (149 | ) | |||||||||
Other liabilities | (27 | ) | — | 10 | (17 | ) | |||||||||||
Net cash provided by operating activities | 2,869 | 946 | 153 | 3,968 | |||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures of FPL | (2,235 | ) | — | — | (2,235 | ) | |||||||||||
Independent power and other investments of NEER | — | (2,471 | ) | — | (2,471 | ) | |||||||||||
Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 321 | — | 321 | |||||||||||||
Nuclear fuel purchases | (129 | ) | (108 | ) | — | (237 | ) | ||||||||||
Other capital expenditures and other investments | — | — | (115 | ) | (115 | ) | |||||||||||
Sale of independent power and other investments of NEER | — | 307 | — | 307 | |||||||||||||
Proceeds from sale or maturity of securities in special use funds and other investments | 2,530 | 563 | 486 | 3,579 | |||||||||||||
Purchases of securities in special use funds and other investments | (2,578 | ) | (586 | ) | (537 | ) | (3,701 | ) | |||||||||
Proceeds from the sale of a noncontrolling interest in subsidiaries | — | 438 | — | 438 | |||||||||||||
Other - net | 36 | (4 | ) | 4 | 36 | ||||||||||||
Net cash used in investing activities | (2,376 | ) | (1,540 | ) | (162 | ) | (4,078 | ) | |||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Issuances of long-term debt | 998 | 1,216 | 2,030 | 4,244 | |||||||||||||
Retirements of long-term debt | (355 | ) | (1,201 | ) | (2,132 | ) | (3,688 | ) | |||||||||
Net change in short-term debt | 76 | — | 419 | 495 | |||||||||||||
Issuances of common stock - net | — | — | 57 | 57 | |||||||||||||
Dividends on common stock | — | — | (945 | ) | (945 | ) | |||||||||||
Dividends & capital distributions from (to) parent - net | (1,200 | ) | 552 | 648 | — | ||||||||||||
Other - net | (2 | ) | 73 | (77 | ) | (6 | ) | ||||||||||
Net cash provided by (used in) financing activities | (483 | ) | 640 | — | 157 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 10 | 46 | (9 | ) | 47 | ||||||||||||
Cash and cash equivalents at beginning of period | 19 | 370 | 49 | 438 | |||||||||||||
Cash and cash equivalents at end of period | $ | 29 | $ | 416 | $ | 40 | $ | 485 | |||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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. | |||||||||||||||||
14
NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
Preliminary | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Year-To-Date | |||||||||||||
2014 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 0.98 | $ | 1.12 | $ | 1.50 | $ | 3.60 | ||||||||
Florida Power & Light - 2014 Earnings Per Share | $ | 0.79 | $ | 0.96 | $ | 1.05 | $ | 2.80 | ||||||||
New investment growth | 0.05 | 0.02 | 0.06 | 0.12 | ||||||||||||
Cost recovery clause results, primarily nuclear uprates in base rates | — | (0.01 | ) | (0.01 | ) | (0.02 | ) | |||||||||
Allowance for funds used during construction | (0.01 | ) | 0.02 | 0.03 | 0.04 | |||||||||||
Wholesale operations | 0.01 | (0.01 | ) | (0.02 | ) | (0.01 | ) | |||||||||
Other and share dilution | (0.04 | ) | (0.01 | ) | (0.04 | ) | (0.09 | ) | ||||||||
Florida Power & Light - 2015 Earnings Per Share | $ | 0.80 | $ | 0.97 | $ | 1.07 | $ | 2.84 | ||||||||
NEER - 2014 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 0.20 | $ | 0.18 | $ | 0.46 | $ | 0.84 | ||||||||
New investments | 0.09 | 0.10 | 0.03 | 0.22 | ||||||||||||
Existing assets | (0.17 | ) | (0.05 | ) | 0.01 | (0.21 | ) | |||||||||
Gas infrastructure | 0.02 | (0.05 | ) | (0.01 | ) | (0.04 | ) | |||||||||
Customer supply and proprietary power & gas trading | 0.21 | 0.03 | 0.03 | 0.27 | ||||||||||||
Asset sales | — | (0.03 | ) | — | (0.03 | ) | ||||||||||
NEP initial public offering transaction costs | — | 0.05 | — | 0.05 | ||||||||||||
NEP Canadian structuring charges | — | 0.10 | — | 0.10 | ||||||||||||
Non-qualifying hedges impact | 0.33 | 0.37 | 0.38 | 1.07 | ||||||||||||
Maine fossil gain | (0.03 | ) | — | — | (0.03 | ) | ||||||||||
Operating results of Spain solar projects | 0.02 | (0.02 | ) | 0.05 | 0.06 | |||||||||||
Change in other than temporary impairment losses - net | — | (0.01 | ) | (0.03 | ) | (0.03 | ) | |||||||||
Interest and corporate general and administrative expenses | (0.05 | ) | (0.06 | ) | (0.06 | ) | (0.17 | ) | ||||||||
Other, including income taxes and share dilution | — | — | (0.04 | ) | (0.05 | ) | ||||||||||
NEER - 2015 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 0.62 | $ | 0.61 | $ | 0.82 | $ | 2.05 | ||||||||
Corporate and Other - 2014 Loss Per Share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
Non-qualifying hedges impact | 0.01 | 0.01 | (0.01 | ) | 0.04 | |||||||||||
Merger-related expenses | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | ||||||||
Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution | 0.04 | 0.03 | 0.07 | 0.11 | ||||||||||||
Corporate and Other - 2015 Earnings Per Share | $ | 0.03 | $ | 0.01 | $ | 0.04 | $ | 0.08 | ||||||||
2015 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 1.45 | $ | 1.59 | $ | 1.93 | $ | 4.97 | ||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate 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 year-to-date total due to rounding. | ||||||||||
15
NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)
Preliminary | |||||||||
September 30, 2015 | Per Books | Adjusted (1) | |||||||
Long-term debt, including current maturities, and short-term debt | |||||||||
Junior Subordinated Debentures | $ | 2,978 | $ | 1,489 | |||||
Debentures, related to NextEra Energy's equity units | 1,850 | ||||||||
Project Debt: | |||||||||
Natural gas-fired assets | 1,458 | ||||||||
Wind assets | 4,060 | 1,532 | |||||||
Solar | 2,303 | 1,025 | |||||||
Other | 940 | 53 | |||||||
Storm Securitization Debt | 273 | ||||||||
Other(2) | 1,185 | ||||||||
Other long-term debt, including current maturities, and short-term debt(3) | 16,402 | 16,402 | |||||||
Total debt per Balance Sheet | 30,264 | 21,686 | |||||||
Junior Subordinated Debentures | 1,489 | ||||||||
Debentures, related to NextEra Energy's equity units | 1,850 | ||||||||
Total Equity | 22,826 | 22,826 | |||||||
Total capitalization, including debt due within one year | $ | 53,090 | $ | 47,851 | |||||
Debt ratio | 57 | % | 45 | % | |||||
December 31, 2014 | Per Books | Adjusted (1) | |||||||
Long-term debt, including current maturities, and short-term debt | |||||||||
Junior Subordinated Debentures | $ | 2,978 | $ | 1,489 | |||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Project Debt: | |||||||||
Natural gas-fired assets | 1,501 | ||||||||
Wind assets | 3,913 | 1,475 | |||||||
Solar | 1,750 | 880 | |||||||
Other | 952 | ||||||||
Storm Securitization Debt | 331 | ||||||||
Other(2) | 1,625 | ||||||||
Other long-term debt, including current maturities, and short-term debt(3) | 15,849 | 15,849 | |||||||
Total debt per Balance Sheet | 29,024 | 21,318 | |||||||
Junior Subordinated Debentures | 1,489 | ||||||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Total Equity | 20,168 | 20,168 | |||||||
Total capitalization, including debt due within one year | $ | 49,192 | $ | 44,725 | |||||
Debt ratio | 59 | % | 48 | % | |||||
________________________
(1) | Adjusted debt calculation is based on NextEra Energy's interpretation of S&P's credit metric methodology which can be found in their Corporate Ratings Criteria on S&P's website. | ||||
(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. | ||||
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Florida Power & Light Company
Statistics
(unaudited)
Preliminary | ||||||||||||||||||
Quarter | Year-to-Date | |||||||||||||||||
Periods Ended September 30, | 2015 | 2014 | % change | 2015 | 2014 | % change | ||||||||||||
Energy sales (million kWh) | ||||||||||||||||||
Residential | 17,919 | 17,241 | 3.9 | % | 44,614 | 42,655 | 4.6 | % | ||||||||||
Commercial | 13,056 | 12,768 | 2.3 | % | 35,416 | 34,587 | 2.4 | % | ||||||||||
Industrial | 778 | 766 | 1.6 | % | 2,279 | 2,221 | 2.6 | % | ||||||||||
Public authorities | 138 | 153 | (9.8 | )% | 419 | 421 | (0.5 | )% | ||||||||||
Increase (decrease) in unbilled sales | (371 | ) | (216 | ) | 71.8 | % | 743 | 511 | 45.4 | % | ||||||||
Total retail | 31,520 | 30,712 | 2.6 | % | 83,471 | 80,395 | 3.8 | % | ||||||||||
Electric utilities | 1,893 | 1,771 | 6.9 | % | 5,118 | 4,301 | 19.0 | % | ||||||||||
Interchange power sales | 326 | 403 | (19.1 | )% | 2,457 | 2,187 | 12.3 | % | ||||||||||
Total | 33,739 | 32,886 | 2.6 | % | 91,046 | 86,883 | 4.8 | % | ||||||||||
Average price (cents/kWh)(1) | ||||||||||||||||||
Residential | 10.74 | 11.21 | (4.2 | )% | 10.80 | 11.13 | (3.0 | )% | ||||||||||
Commercial | 8.52 | 8.89 | (4.2 | )% | 8.78 | 9.04 | (2.9 | )% | ||||||||||
Industrial | 6.60 | 6.90 | (4.3 | )% | 6.72 | 6.95 | (3.3 | )% | ||||||||||
Total | 9.53 | 9.97 | (4.4 | )% | 9.65 | 9.97 | (3.2 | )% | ||||||||||
Average customer accounts (000s) | ||||||||||||||||||
Residential | 4,232 | 4,173 | 1.4 | % | 4,221 | 4,162 | 1.4 | % | ||||||||||
Commercial | 534 | 526 | 1.5 | % | 532 | 525 | 1.3 | % | ||||||||||
Industrial | 12 | 11 | 9.1 | % | 11 | 10 | 10.0 | % | ||||||||||
Other | 3 | 4 | (25.0 | )% | 4 | 4 | — | % | ||||||||||
Total | 4,781 | 4,714 | 1.4 | % | 4,768 | 4,701 | 1.4 | % | ||||||||||
September 30, | ||||||||||||||||||
2015 | 2014 | % change | ||||||||||||||||
End of period customer accounts (000s) | ||||||||||||||||||
Residential | 4,236 | 4,177 | 1.4 | % | ||||||||||||||
Commercial | 534 | 527 | 1.3 | % | ||||||||||||||
Industrial | 12 | 11 | 9.1 | % | ||||||||||||||
Other | 4 | 4 | — | % | ||||||||||||||
Total | 4,786 | 4,719 | 1.4 | % | ||||||||||||||
2015 | Normal | 2014 | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Cooling degree-days(2) | 949 | 931 | 917 | |||||||||||||||
Heating degree-days(2) | — | — | — | |||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||
Cooling degree-days(2) | 1,839 | 1,650 | 1,669 | |||||||||||||||
Heating degree-days(2) | 186 | 264 | 202 | |||||||||||||||
________________________
(1) | Excludes interchange power sales, net change in unbilled revenues and deferrals under cost recovery clauses. |
(2) | Cooling degree days use a 72 degree base temperature and heating degree days use a 66 degree base temperature. |
17