Commission
File
Number
|
Exact
name of registrants as specified in their
charters,
address of principal executive offices and
registrants'
telephone number
|
IRS
Employer
Identification
Number
|
||
1-8841
2-27612
|
FPL
GROUP, INC.
FLORIDA
POWER & LIGHT COMPANY
700
Universe Boulevard
Juno
Beach, Florida 33408
(561)
694-4000
|
59-2449419
59-0247775
|
Name
of exchange
on
which registered
|
|
Securities
registered pursuant to Section 12(b) of the Act:
FPL Group,
Inc.: Common Stock, $0.01 Par Value
Florida Power & Light
Company: None
|
New
York Stock Exchange
|
FPL Group,
Inc. Yes þ No ¨ Florida
Power & Light Company Yes þ No ¨
|
FPL Group,
Inc. Yes ¨ No þ Florida
Power & Light Company Yes ¨ No þ
|
FPL Group,
Inc. Yes þ No ¨ Florida
Power & Light Company Yes þ No ¨
|
FPL
Group, Inc.
|
Large
Accelerated Filer þ
|
Accelerated
Filer ¨
|
Non-Accelerated
Filer ¨
|
Smaller
Reporting Company ¨
|
Florida Power & Light
Company
|
Large
Accelerated Filer ¨
|
Accelerated
Filer ¨
|
Non-Accelerated Filer þ
|
Smaller Reporting Company ¨
|
Term
|
Meaning
|
AFUDC
|
allowance
for funds used during construction
|
AFUDC
-
equity
|
equity
component of allowance for funds used during
construction
|
BART
|
Best
Available Retrofit Technology
|
capacity
clause
|
capacity
cost recovery clause, as established by the FPSC
|
charter
|
restated
articles of incorporation, as amended, of FPL Group or FPL, as the case
may be
|
CO2
|
carbon
dioxide
|
DOE
|
U.S.
Department of Energy
|
Duane
Arnold
|
Duane
Arnold Energy Center
|
EMF
|
electric
and magnetic field(s)
|
EMT
|
Energy
Marketing & Trading
|
environmental
clause
|
environmental
compliance cost recovery clause, as established by the
FPSC
|
EPA
|
U.S.
Environmental Protection Agency
|
ERCOT
|
Electric
Reliability Council of Texas
|
Exchange
Act
|
Securities
Exchange Act of 1934, as amended
|
FAS
|
Statement
of Financial Accounting Standards No.
|
FASB
|
Financial
Accounting Standards Board
|
FDEP
|
Florida
Department of Environmental Protection
|
FERC
|
Federal
Energy Regulatory Commission
|
FGT
|
Florida
Gas Transmission Company
|
FIN
|
FASB
Interpretation No.
|
FMPA
|
Florida
Municipal Power Agency
|
FPL
|
Florida
Power & Light Company
|
FPL
FiberNet
|
FPL
FiberNet, LLC
|
FPL
Group
|
FPL
Group, Inc.
|
FPL
Group Capital
|
FPL
Group Capital Inc
|
FPSC
|
Florida
Public Service Commission
|
fuel
clause
|
fuel
and purchased power cost recovery clause, as established by the
FPSC
|
Gulfstream
|
Gulfstream
Natural Gas System, L.L.C.
|
Holding
Company Act
|
Public
Utility Holding Company Act of 2005
|
IRS
|
Internal
Revenue Service
|
kv
|
kilovolt(s)
|
kwh
|
kilowatt-hour(s)
|
LIBOR
|
London
InterBank Offered Rate
|
LTIP
|
FPL
Group, Inc. Amended and Restated Long Term Incentive
Plan
|
Management's
Discussion
|
Item
7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
|
mortgage
|
mortgage
and deed of trust dated as of January 1, 1944, from FPL to Deutsche Bank
Trust Company Americas, as supplemented and amended
|
mw
|
megawatt(s)
|
NEPOOL
|
New
England Power Pool
|
NextEra
Energy Resources
|
NextEra
Energy Resources, LLC, formerly known as FPL Energy,
LLC
|
Note
___
|
note
___ to consolidated financial statements
|
NOx
|
nitrogen
oxide
|
NRC
|
U.S.
Nuclear Regulatory Commission
|
Nuclear
Waste Policy Act
|
Nuclear
Waste Policy Act of 1982, as amended
|
O&M
expenses
|
other
operations and maintenance expenses in the consolidated statements of
income
|
PJM
|
PJM
Interconnection, L.L.C.
|
PMI
|
FPL
Energy Power Marketing, LLC
|
Point
Beach
|
Point
Beach Nuclear Power Plant
|
PTCs
|
production
tax credits
|
PURPA
|
Public
Utility Regulatory Policies Act of 1978, as amended
|
qualifying
facilities
|
non-utility
power production facilities meeting the requirements of a qualifying
facility under the PURPA
|
RFP
|
request
for proposal
|
ROE
|
return
on common equity
|
Seabrook
|
Seabrook
Station
|
SEC
|
U.S.
Securities and Exchange Commission
|
SEGS
|
Solar
Electric Generating System
|
SO2
|
sulfur
dioxide
|
VIE
|
variable
interest entity
|
Page
No.
|
||
Definitions
|
2
|
|
Forward-Looking
Statements
|
3
|
|
PART
I
|
||
Item
1.
|
Business
|
4
|
Item
1A.
|
Risk
Factors
|
19
|
Item
1B.
|
Unresolved
Staff Comments
|
22
|
Item
2.
|
Properties
|
23
|
Item
3.
|
Legal
Proceedings
|
26
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
26
|
PART
II
|
||
Item
5.
|
Market
for Registrants' Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
26
|
Item
6.
|
Selected
Financial Data
|
27
|
Item
7.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
27
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
50
|
Item
8.
|
Financial
Statements and Supplementary Data
|
51
|
Item
9.
|
Changes
in and Disagreements With Accountants on Accounting and Financial
Disclosure
|
101
|
Item
9A.
|
Controls
and Procedures
|
101
|
Item
9B.
|
Other
Information
|
101
|
PART
III
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
101
|
Item
11.
|
Executive
Compensation
|
101
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
101
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
102
|
Item
14.
|
Principal
Accounting Fees and Services
|
102
|
PART
IV
|
||
Item
15.
|
Exhibits,
Financial Statement Schedules
|
103
|
Signatures
|
110
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Residential
|
53
|
%
|
54
|
%
|
54
|
%
|
|||
Commercial
|
40
|
39
|
39
|
||||||
Industrial
|
3
|
3
|
3
|
||||||
Other,
including deferred or recovered clause revenues, the net change in
unbilled revenues, transmission and wholesale sales and customer-related
fees
|
4
|
4
|
4
|
||||||
100
|
%
|
100
|
%
|
100
|
%
|
Fuel
Source
|
Percentage
of
kwh
Produced
|
||
Natural
gas
|
53
|
%
|
|
Nuclear
|
22
|
%
|
|
Purchased
power
|
14
|
%
|
|
Coal
|
6
|
%
|
|
Oil
|
5
|
%
|
Facility
|
Unit
|
Net
Capability
(mw)
|
Operating
License
Expiration
Dates
|
Next
Scheduled
Refueling
Outage
|
||||
St.
Lucie
|
1
|
839
|
2036
|
April
2010
|
||||
St.
Lucie
|
2
|
714
|
2043
|
April
2009
|
||||
Turkey
Point
|
3
|
693
|
2032
|
March
2009
|
||||
Turkey
Point
|
4
|
693
|
2033
|
October
2009
|
2009
|
2010
|
2011
|
2012
|
2013
|
Total
|
||||||||||||
(millions)
|
|||||||||||||||||
Generation:
(a)
|
|||||||||||||||||
New (b) (c)
(d)
|
$
|
1,350
|
$
|
1,355
|
$
|
760
|
$
|
355
|
$
|
40
|
$
|
3,860
|
|||||
Existing
|
665
|
680
|
610
|
515
|
430
|
2,900
|
|||||||||||
Transmission
and distribution
|
615
|
865
|
925
|
930
|
975
|
4,310
|
|||||||||||
Nuclear
fuel
|
125
|
205
|
215
|
220
|
265
|
1,030
|
|||||||||||
General
and other
|
170
|
290
|
315
|
300
|
235
|
1,310
|
|||||||||||
Total
|
$
|
2,925
|
$
|
3,395
|
$
|
2,825
|
$
|
2,320
|
$
|
1,945
|
$
|
13,410
|
(a)
|
Includes
AFUDC of approximately $63 million, $53 million, $32 million and $4
million in 2009 to 2012, respectively.
|
(b)
|
Includes
land, generating structures, transmission interconnection and integration
and licensing.
|
(c)
|
Includes
pre-construction costs and carrying charges (equal to the pretax AFUDC
rate) on construction costs recoverable through the capacity clause of
approximately $72 million, $201 million, $323 million, $50 million and $19
million in 2009 to 2013, respectively.
|
(d)
|
Excludes
capital expenditures of approximately $2.2 billion for the modernization
of the Cape Canaveral and Riviera power plants for the period from
early-2010 (when approval by the Siting Board is expected) through
2013. Also excludes construction costs of approximately $2.5
billion during the period 2012 to 2013 for the two additional nuclear
units at FPL's Turkey Point site. Construction costs will not
begin until license approval is received from the NRC, which is expected
in 2012.
|
Geographic
Region
|
Percentage
of Generation Capacity
|
||
ERCOT
|
30
|
%
|
|
Northeast
|
30
|
%
|
|
Midwest
|
18
|
%
|
|
West
|
15
|
%
|
|
Other
South
|
7
|
%
|
Fuel
Source
|
Percentage
of Generation Capacity
|
||
Natural
Gas
|
39
|
%
|
|
Wind
|
38
|
%
|
|
Nuclear
|
15
|
%
|
|
Oil
|
5
|
%
|
|
Hydro
|
2
|
%
|
|
Other
|
1
|
%
|
2009
|
2010
|
2011
|
2012
|
2013
|
Total
|
||||||||||||
(millions)
|
|||||||||||||||||
Wind
(a)
|
$
|
2,035
|
$
|
20
|
$
|
20
|
$
|
15
|
$
|
10
|
$
|
2,100
|
|||||
Nuclear
(b)
|
370
|
430
|
295
|
275
|
305
|
1,675
|
|||||||||||
Natural
gas
|
105
|
70
|
75
|
85
|
50
|
385
|
|||||||||||
Other
|
70
|
60
|
45
|
35
|
30
|
240
|
|||||||||||
Total
|
$
|
2,580
|
$
|
580
|
$
|
435
|
$
|
410
|
$
|
395
|
$
|
4,400
|
(a)
|
Includes
capital expenditures for new wind projects that have been identified and
related transmission. NextEra Energy Resources expects to add
approximately 1,100 mw in 2009 and 1,000 mw to 2,000 mw of new wind
generation per year from 2010 through 2012, subject to, among other
things, continued public policy support, which includes, but is not
limited to, support for the construction and availability of sufficient
transmission facilities and capacity, and access to reasonable capital and
credit markets. The cost of the planned wind additions for the
2010 through 2012 period is estimated to be approximately $2.5 billion to
$4.5 billion in each year, which is not included in the table
above.
|
(b)
|
Includes
nuclear fuel.
|
Facility
|
Location
|
Net
Capability
(mw)
|
Portfolio
Category
|
Operating
License Expiration Dates
|
Next
Scheduled
Refueling
Outage
|
|||||||||
Seabrook
|
New
Hampshire
|
1,098
|
Merchant
|
2030
|
(a)
|
October
2009
|
||||||||
Duane
Arnold
|
Iowa
|
424
|
Contracted(b)
|
2014
|
(c)
|
October
2010
|
||||||||
Point
Beach Unit No. 1
|
Wisconsin
|
509
|
Contracted(d)
|
2030
|
March
2010
|
|||||||||
Point
Beach Unit No. 2
|
Wisconsin
|
514
|
Contracted(d)
|
2033
|
October
2009
|
(a)
|
NextEra
Energy Resources intends to seek approval from the NRC to renew Seabrook's
operating license for an additional 20 years.
|
(b)
|
NextEra
Energy Resources sells substantially all of its share of the output of
Duane Arnold under a long-term contract expiring in
2014.
|
(c)
|
In
September 2008, NextEra Energy Resources filed an application with the NRC
to renew Duane Arnold’s operating license for an additional 20
years.
|
(d)
|
NextEra
Energy Resources sells 100% of the output of Point Beach Units Nos. 1 and
2 under a long-term contract through the current license
terms.
|
Union
|
Location
|
Contract
Expiration
Date
|
%
of NextEra Energy
Resources
Employees
Covered
|
||||||
IBEW
|
Wisconsin
|
June
2009 – August 2010 (a)
|
11
|
%
|
|||||
Utility
Workers Union of America
|
New
Hampshire
|
December
2013
|
5
|
||||||
IBEW
|
Iowa
|
May
2012
|
4
|
||||||
IBEW
|
Maine
|
February
2013
|
2
|
||||||
Security
Police and Fire Professionals of America
|
Iowa
|
July
2012
|
2
|
||||||
Total
|
24
|
%
|
(a)
|
Various
employees at Point Beach are represented by the IBEW under four separate
contracts with different expiration
dates.
|
·
|
participation
in various groups, including working with the Governor of Florida on the
Governor's Action Team on Energy and Climate Change, the FDEP, the Florida
Energy and Climate Commission and the FPSC in addressing executive orders
issued in 2007 by the Governor of Florida (see below for additional
information);
|
·
|
voluntary
reporting of its greenhouse gas emissions to the DOE under the Energy
Policy Act of 1992;
|
·
|
voluntary
reporting of its greenhouse gas emissions and climate change strategy
through the Carbon Disclosure Project (an investor-led initiative to
identify climate change impacts on publicly-traded
companies);
|
·
|
participation
in the U.S. Climate Action Partnership (an alliance made up of a diverse
group of U.S.-based businesses and environmental organizations, which in
January 2009 issued the Blueprint for Legislative Action, a set of
legislative principles and recommendations to address global climate
change and the reduction of greenhouse gas
emissions);
|
·
|
participation
in the Clinton Global Initiative (an organization which seeks to foster
shared commitment by individuals, businesses and governments to confront
major world issues and achieve real
change);
|
·
|
participation
in the EPA's Climate Leaders Program to reduce greenhouse gas intensity in
the United States 18% by 2012, including reporting of emissions data
annually. During 2008, FPL Group met its commitment to achieve
a 2008 target emissions rate reduction of 18% below a 2001 baseline
emission rate measured in pounds per megawatt-hour;
and
|
·
|
supporting
Edison Electric Institute's climate change framework, which supports the
concept of mandatory legislation capping carbon emissions economy wide and
recommends, among other things, an 80% reduction of carbon emissions from
current levels by 2050.
|
·
|
The
Regional Greenhouse Gas Initiative (RGGI) is a greenhouse gas reduction
initiative whereby ten Northeast and Mid-Atlantic member states have
established a cap and trade program for covered electric generating units
in Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York,
Vermont, Maryland, Massachusetts and Rhode Island. RGGI members
have agreed to stabilize power plant CO2
emissions at 2009 levels through the end of 2014 and to further reduce the
sector's emissions another 10% by the end of 2018. The RGGI
greenhouse gas reduction requirements will affect 12 NextEra Energy
Resources fossil electric generating units, requiring those electric
generating units to reduce emissions or to acquire CO2
allowances for emissions of CO2
beginning in 2009. All RGGI states have enacted legislation and
regulations. Based on NextEra Energy Resources' clean
generating portfolio in the RGGI marketplace, NextEra Energy Resources
expects that the requirement will have a positive overall impact on
NextEra Energy Resources' earnings in
2009.
|
·
|
The
Western Climate Initiative (WCI) is a greenhouse gas reduction initiative
with a goal of reducing CO2
emissions by 15% below 2005 levels by 2020 for participants (Arizona,
California, Oregon, Montana, New Mexico, Washington and Utah, as well as
British Columbia, Manitoba, Ontario and Quebec,
Canada).
|
·
|
California
Greenhouse Gas Regulation – California has enacted legislation to reduce
greenhouse gas emissions in the state to 1990 emissions levels by
2020. Pursuant to the legislation, the California Air Resources
Board (CARB) must implement multi-sector greenhouse gas reduction measures
by January 1, 2012. The CARB has recommended that California
not implement a state-only greenhouse gas reduction program but instead
participate in the regional WCI
program.
|
·
|
The
Midwestern Greenhouse Gas Reduction Accord (MGGRA) is an initiative to
reduce greenhouse gas emissions through the establishment of targets for
greenhouse gas reductions and the development of a cap and trade
program. Participants in MGGRA are Illinois, Iowa, Kansas,
Michigan, Minnesota, Wisconsin and Manitoba, Canada. The final
Model Rule is expected in September 2009, with a cap and trade program
beginning in January 2012. MGGRA is a multi-sector program that
will initially be focused on the electricity generation and imports,
industrial combustion and industrial processes sectors. NextEra
Energy Resources does not have any fossil-fired generation in the MGGRA
region.
|
Name
|
Age
|
Position
|
Effective
Date
|
|||
Christopher
A. Bennett
|
50
|
Executive
Vice President & Chief Strategy, Policy & Business Process
Improvement Officer of FPL Group
|
February 15, 2008 (b)
|
|||
Paul
I. Cutler
|
49
|
Treasurer
of FPL Group
Assistant
Secretary of FPL Group
Treasurer
of FPL
Assistant
Secretary of FPL
|
February
19, 2003
December
10, 1997
February
18, 2003
December
10, 1997
|
|||
F.
Mitchell Davidson
|
46
|
Chief
Executive Officer of NextEra Energy Resources
President
of NextEra Energy Resources
|
July
29, 2008
December
15, 2006
|
|||
K.
Michael Davis
|
62
|
Controller
and Chief Accounting Officer of FPL Group
Vice
President, Accounting and Chief Accounting Officer of FPL
|
May
13, 1991
July
1, 1991
|
|||
Lewis
Hay, III
|
53
|
Chief
Executive Officer of FPL Group
Chairman
of FPL Group
Chairman
of FPL
|
June
11, 2001
January
1, 2002
January
1, 2002
|
|||
Robert
L. McGrath
|
55
|
Executive
Vice President, Engineering, Construction & Corporate Services of FPL
Group
Executive
Vice President, Engineering, Construction & Corporate Services of
FPL
|
February 21, 2005 (b)
February 21, 2005 (c)
|
|||
Armando
J. Olivera
|
59
|
Chief
Executive Officer of FPL
President
of FPL
|
July
17, 2008
June
24, 2003
|
|||
Armando
Pimentel, Jr.
|
46
|
Chief
Financial Officer of FPL Group
Executive
Vice President, Finance of FPL Group
Chief
Financial Officer of FPL
Executive
Vice President, Finance of FPL
|
May
3, 2008
February 15, 2008 (b)
May
3, 2008
February 15, 2008 (c)
|
|||
James
W. Poppell, Sr.
|
58
|
Executive
Vice President, Human Resources of FPL Group and FPL
Assistant
Secretary of FPL Group and FPL
|
December
12, 2008
January
28, 2005
|
|||
James
L. Robo
|
46
|
President
and Chief Operating Officer of FPL Group
|
December
15, 2006
|
|||
Antonio
Rodriguez
|
66
|
Executive
Vice President, Power Generation Division of FPL Group
Executive
Vice President, Power Generation Division of FPL
|
January
1, 2007 (b)
July 1, 1999 (c)
|
|||
Charles
E. Sieving
|
36
|
Executive
Vice President and General Counsel of FPL Group
Executive
Vice President and General Counsel of FPL
|
December
1, 2008
January
1, 2009
|
|||
John
A. Stall
|
54
|
President,
Nuclear Division of FPL Group
Executive
Vice President, Nuclear Division of FPL
|
January
1, 2009
June
4, 2001 (c)
|
(a)
|
Information
is as of February 26, 2009. Executive officers are elected
annually by, and serve at the pleasure of, their respective boards of
directors. Except as noted below, each officer has held his
present position for five years or more and his employment history is
continuous. Mr. Bennett was vice president, business strategy
& policy of FPL Group from July 2007 to February 15,
2008. Prior to that, Mr. Bennett was vice president of Dean
& Company, a management consulting and investment firm. Mr.
Davidson was senior vice president of business management of NextEra
Energy Resources from March 2005 to December 2006. He was vice
president of business management of NextEra Energy Resources from June
2004 to March 2005. Mr. Davis was also controller of FPL from
July 1991 to September 2007. Mr. Hay was also chief executive
officer of FPL from January 2002 to July 2008. Mr. Hay was
president of FPL Group from June 2001 to December 2006. Mr.
McGrath was senior vice president, engineering and construction of FPL
from November 2002 to February 2005. Mr. Pimentel was a partner
of Deloitte & Touche LLP, an independent registered public accounting
firm, from June 1998 to February 2008. Mr. Poppell was vice
president, human resources of FPL from November 2006 to December 2008.
He was director, employee relations of FPL from January 2005 to
November 2006. From March 2003 to January 2005, Mr. Poppell was a
senior attorney of FPL. Mr. Robo was president of NextEra
Energy Resources from July 2002 to December 2006. He was also
vice president, corporate development and strategy of FPL Group from March
2002 to December 2006. Mr. Sieving was executive vice
president, general counsel and secretary of PAETEC Holding Corp., a
communications services and solutions provider, from February 2007 to
November 2008 and was primarily responsible for all legal and regulatory
matters. From January 2005 to February 2007, Mr. Sieving was a
partner in the corporate, securities and finance practice group of Hogan
& Hartson LLP, an international law firm, with which he had been
associated since October 1998. Mr. Stall was also executive
vice president, nuclear division of FPL Group from January 2007 to
December 2008 (b).
|
(b)
|
Title
changed from vice president to executive vice president effective May 23,
2008.
|
(c)
|
Title
changed from senior vice president to executive vice president effective
July 17, 2008.
|
·
|
FPL
Group and FPL are subject to complex laws and regulations, and to changes
in laws or regulations, with respect to, among other things, allowed rates
of return, industry and rate structure, operation of nuclear power
facilities, construction and operation of generation facilities,
construction and operation of transmission and distribution facilities,
acquisition, disposal, depreciation and amortization of assets and
facilities, recovery of fuel and purchased power costs, decommissioning
costs, ROE and equity ratio limits, transmission reliability and present
or prospective wholesale and retail competition. This
substantial and complex framework exposes FPL Group and FPL to increased
compliance costs and potentially significant monetary penalties for
non-compliance. The FPSC has the authority to disallow recovery
by FPL of any and all costs that it considers excessive or imprudently
incurred. The regulatory process generally restricts FPL's
ability to grow earnings and does not provide any assurance as to
achievement of earnings levels.
|
·
|
FPL
Group and FPL also are subject to extensive federal, state and local
environmental statutes, rules and regulations, as well as the effect of
changes in or additions to applicable statutes, rules and regulations that
relate to, or in the future may relate to, for example, air quality, water
quality, climate change, greenhouse gas emissions, CO2
emissions, waste management, marine and wildlife mortality, natural
resources, health, safety and renewable portfolio standards that could,
among other things, restrict or limit the output of certain facilities or
the use of certain fuels required for the production of electricity and/or
require additional pollution control equipment and otherwise increase
costs. There are significant capital, operating and other costs
associated with compliance with these environmental statutes, rules and
regulations, and those costs could be even more significant in the
future.
|
·
|
FPL
Group and FPL operate in a changing market environment influenced by
various legislative and regulatory initiatives regarding regulation,
deregulation or restructuring of the energy industry, including, for
example, deregulation or restructuring of the production and sale of
electricity, as well as increased focus on renewable and clean energy
sources and reduction of carbon emissions. FPL Group and its
subsidiaries will need to adapt to these changes and may face increasing
costs and competitive pressure in doing
so.
|
·
|
FPL
Group's and FPL's results of operations could be affected by FPL's ability
to negotiate or renegotiate franchise agreements with municipalities and
counties in Florida.
|
·
|
The
operation and maintenance of power generation, transmission and
distribution facilities involve many risks, including, for example, start
up risks, breakdown or failure of equipment, transmission and distribution
lines or pipelines, the inability to properly manage or mitigate known
equipment defects throughout FPL Group's and FPL's generation fleets and
transmission and distribution systems, use of new or unproven technology,
the dependence on a specific fuel source, failures in the supply or
transportation of fuel, the impact of unusual or adverse weather
conditions (including natural disasters such as hurricanes, floods and
droughts), and performance below expected or contracted levels of output
or efficiency. This could result in lost revenues and/or
increased expenses, including, for example, lost revenues due to prolonged
outages and increased expenses due to monetary penalties or fines,
replacement equipment costs or an obligation to purchase or generate
replacement power at potentially higher prices to meet contractual
obligations. Insurance, warranties or performance guarantees
may not cover any or all of the lost revenues or increased
expenses. Breakdown or failure of an operating facility of
NextEra Energy Resources may, for example, prevent the facility from
performing under applicable power sales agreements which, in certain
situations, could result in termination of the agreement or subject
NextEra Energy Resources to incurring a liability for liquidated
damages.
|
·
|
FPL
and NextEra Energy Resources own, or hold undivided interests in, nuclear
generation facilities in four states. These nuclear facilities
are subject to environmental, health and financial risks such as on-site
storage of spent nuclear fuel, the ability to dispose of spent nuclear
fuel, the ability to maintain adequate reserves for decommissioning,
potential liabilities arising out of the operation of these facilities,
and the threat of a possible terrorist attack. Although FPL and
NextEra Energy Resources maintain decommissioning trusts and external
insurance coverage to minimize the financial exposure to these risks, it
is possible that the cost of decommissioning the facilities could exceed
the amount available in the decommissioning trusts, and that liability and
property damages could exceed the amount of insurance
coverage.
|
·
|
The
NRC has broad authority to impose licensing and safety-related
requirements for the construction and operation and maintenance of nuclear
generation facilities. In the event of non-compliance, the NRC
has the authority to impose fines or shut down a unit, or both, depending
upon its assessment of the severity of the situation, until compliance is
achieved. NRC orders or new regulations related to increased
security measures and any future safety requirements promulgated by the
NRC could require FPL and NextEra Energy Resources to incur substantial
operating and capital expenditures at their nuclear plants. In
addition, if a serious nuclear incident were to occur at an FPL or NextEra
Energy Resources plant, it could result in substantial costs. A
major incident at a nuclear facility anywhere in the world could cause the
NRC to limit or prohibit the operation or licensing of any domestic
nuclear unit.
|
·
|
In
addition, potential terrorist threats and increased public scrutiny of
utilities could result in increased nuclear licensing or compliance costs
which are difficult or impossible to
predict.
|
·
|
The
ability of FPL Group and FPL to complete construction of, and capital
improvement projects for, their power generation and transmission
facilities on schedule and within budget are contingent upon many
variables that could delay completion, increase costs or otherwise
adversely affect operational and financial results, including, for
example, limitations related to transmission interconnection issues,
escalating costs for materials and labor and environmental compliance,
delays with respect to permits and other approvals, and disputes involving
third parties, and are subject to substantial risks. Should any
such efforts be unsuccessful or delayed, FPL Group and FPL could be
subject to additional costs, termination payments under committed
contracts, loss of tax credits and/or the write-off of their investment in
the project or improvement.
|
·
|
FPL
Group and FPL use derivative instruments, such as swaps, options, futures
and forwards, some of which are traded in the over-the-counter markets or
on exchanges, to manage their commodity and financial market risks, and
for FPL Group to engage in trading and marketing
activities. FPL Group could recognize financial losses as a
result of volatility in the market values of these derivative instruments,
or if a counterparty fails to perform or make payments under these
derivative instruments and could suffer a reduction in operating cash
flows as a result of the requirement to post margin cash
collateral. In the absence of actively quoted market prices and
pricing information from external sources, the valuation of these
derivative instruments involves management's judgment or use of
estimates. As a result, changes in the underlying assumptions
or use of alternative valuation methods could affect the reported fair
value of these derivative instruments. In addition, FPL's use
of such instruments could be subject to prudence challenges and, if found
imprudent, cost recovery could be disallowed by the
FPSC.
|
·
|
FPL
Group provides full energy and capacity requirement services, which
include load-following services and various ancillary services, primarily
to distribution utilities to satisfy all or a portion of such utilities’
power supply obligations to their customers. The supply costs
for these transactions may be affected by a number of factors, such as
weather conditions, fluctuating prices for energy and ancillary services,
and the ability of the distribution utilities’ customers to elect to
receive service from competing suppliers, which could negatively affect
FPL Group’s results of operations from these
transactions.
|
·
|
There
are various risks associated with FPL Group's competitive energy
business. In addition to risks discussed elsewhere, risk
factors specifically affecting NextEra Energy Resources' success in
competitive wholesale markets include, for example, the ability to
efficiently develop and operate generating assets, the successful and
timely completion of project restructuring activities, maintenance of the
qualifying facility status of certain projects, the price and supply of
fuel (including transportation) and equipment, transmission constraints,
the ability to utilize PTCs, competition from other and new sources of
generation, excess generation capacity and shifting demand for
power. There can be significant volatility in market prices for
fuel, electricity and renewable and other energy commodities, and there
are other financial, counterparty and market risks that are beyond the
control of NextEra Energy Resources. NextEra Energy Resources'
inability or failure to effectively hedge its assets or positions against
changes in commodity prices, interest rates, counterparty credit risk or
other risk measures could significantly impair FPL Group's future
financial results. In keeping with industry trends, a portion
of NextEra Energy Resources' power generation facilities operate wholly or
partially without long-term power purchase agreements. As a
result, power from these facilities is sold on the spot market or on a
short-term contractual basis, which may increase the volatility of FPL
Group's financial results. In addition, NextEra Energy
Resources' business depends upon power transmission and natural gas
transportation facilities owned and operated by others; if transmission or
transportation is disrupted or capacity is inadequate or unavailable,
NextEra Energy Resources' ability to sell and deliver its wholesale power
or natural gas may be limited.
|
·
|
FPL
Group is likely to encounter significant competition for acquisition
opportunities that may become available as a result of the consolidation
of the power industry in general. In addition, FPL Group may be
unable to identify attractive acquisition opportunities at favorable
prices and to complete and integrate them successfully and in a timely
manner.
|
·
|
FPL
Group and FPL participate in markets that are susceptible to uncertain
economic conditions, which complicate estimates of revenue
growth. Because components of budgeting and forecasting are
dependent upon estimates of revenue growth in the markets FPL Group and
FPL serve, the uncertainty makes estimates of future income and
expenditures more difficult. As a result, FPL Group and FPL may
make significant investments and expenditures but never realize the
anticipated benefits, which could adversely affect results of
operations. The future direction of the overall economy also
may have a significant effect on the overall performance and financial
condition of FPL Group and FPL.
|
·
|
FPL
Group's and FPL's results of operations are affected by the growth in
customer accounts in FPL's service area and by customer
usage. Customer growth can be affected by population
growth. Customer growth and customer usage can be affected by
economic factors in Florida and elsewhere, including, for example, job and
income growth, housing starts and new home prices. Customer
growth and customer usage directly influence the demand for electricity
and the need for additional power generation and power delivery facilities
at FPL.
|
·
|
FPL
Group's and FPL's results of operations are affected by changes in the
weather. Weather conditions directly influence the demand for
electricity and natural gas, affect the price of energy commodities, and
can affect the production of electricity at power generating facilities,
including, but not limited to, wind, solar and hydro-powered
facilities. FPL Group's and FPL's results of operations can be
affected by the impact of severe weather which can be destructive, causing
outages and/or property damage, may affect fuel supply, and could require
additional costs to be incurred. At FPL, recovery of these
costs is subject to FPSC approval.
|
·
|
Having
access to the credit and capital markets, at a reasonable cost, is
necessary for FPL Group and FPL to fund their operations, including their
capital requirements. Those markets have provided FPL Group and FPL with
the liquidity to operate and grow their businesses that is not otherwise
provided from operating cash flows. Disruptions, uncertainty or
volatility in those markets can increase FPL Group's and FPL's cost of
capital. If FPL Group and FPL are unable to access the credit
and capital markets on terms that are reasonable, they may have to delay
raising capital, issue shorter-term securities and/or bear an unfavorable
cost of capital, which, in turn, could adversely impact their ability to
grow their businesses, decrease earnings, significantly reduce financial
flexibility and/or limit FPL Group's ability to sustain its current common
stock dividend level.
|
·
|
The
market price and trading volume of FPL Group's common stock could be
subject to significant fluctuations due to, among other things, general
stock market conditions and changes in market sentiment regarding FPL
Group and its subsidiaries' operations, business, growth prospects and
financing strategies.
|
·
|
FPL
Group and FPL rely on access to capital and credit markets as significant
sources of liquidity for capital requirements not satisfied by operating
cash flows. The inability of FPL Group, FPL Group Capital and
FPL to maintain their current credit ratings could affect their ability to
raise capital or obtain credit on favorable terms, which, in turn, could
impact FPL Group's and FPL's ability to grow their businesses and would
likely increase their interest
costs.
|
·
|
FPL
Group and FPL rely on contracts with vendors for the supply of equipment,
materials, fuel and other goods and services required for the construction
and operation of, and for capital improvements to, their facilities, as
well as for business operations. If vendors fail to fulfill their
contractual obligations, FPL Group and FPL may need to make arrangements
with other suppliers, which could result in higher costs, untimely
completion of power generation facilities and other projects, and/or a
disruption to their operations.
|
·
|
FPL
Group and FPL are subject to costs and other potentially adverse effects
of legal and regulatory proceedings, settlements, investigations and
claims, as well as regulatory compliance and the effect of new, or changes
in, tax laws, rates or policies, rates of inflation, accounting standards,
securities laws, corporate governance requirements and labor and
employment laws.
|
·
|
FPL
and NextEra Energy Resources, as owners and operators of bulk power
transmission systems and/or critical assets within various regions
throughout the United States, are subject to mandatory reliability
standards promulgated by the North American Electric Reliability
Corporation and enforced by the FERC. These standards, which
previously were being applied on a voluntary basis, became mandatory in
June 2007. Noncompliance with these mandatory reliability
standards could result in sanctions, including substantial monetary
penalties, which likely would not be recoverable from
customers.
|
·
|
FPL
Group and FPL are subject to direct and indirect effects of terrorist
threats and activities, as well as cyber attacks and disruptive activities
of individuals and/or groups. Infrastructure facilities and
systems, including, for example, generation, transmission and distribution
facilities, physical assets and information systems, in general, have been
identified as potential targets. The effects of these threats
and activities include, but are not limited to, the inability to generate,
purchase or transmit power, the delay in development and construction of
new generating facilities, the risk of a significant slowdown in growth or
a decline in the U.S. economy, delay in economic recovery in the United
States, and the increased cost and adequacy of security and
insurance.
|
·
|
FPL
Group's and FPL's ability to obtain insurance, and the cost of and
coverage provided by such insurance, could be adversely affected by
international, national, state or local events as well as company-specific
events.
|
·
|
FPL
Group and FPL are subject to employee workforce factors, including, for
example, loss or retirement of key executives, availability of qualified
personnel, inflationary pressures on payroll and benefits costs and
collective bargaining agreements with union employees and work stoppage
that could adversely affect the businesses and financial condition of FPL
Group and FPL.
|
FPL
Facilities
|
Location
|
No.
of
Units
|
Fuel
|
Net Capability
(mw)
(a)
|
|||||||
Nuclear
|
|||||||||||
St. Lucie
|
Hutchinson
Island, FL
|
2
|
Nuclear
|
1,553
|
(b)
|
||||||
Turkey Point
|
Florida
City, FL
|
2
|
Nuclear
|
1,386
|
|||||||
Steam
turbines
|
|||||||||||
Cape Canaveral
|
Cocoa,
FL
|
2
|
Oil/Gas
|
792
|
|||||||
Cutler
|
Miami,
FL
|
2
|
Gas
|
204
|
|||||||
Manatee
|
Parrish,
FL
|
2
|
Oil/Gas
|
1,624
|
|||||||
Martin
|
Indiantown,
FL
|
2
|
Oil/Gas
|
1,652
|
|||||||
Port Everglades
|
Port
Everglades, FL
|
4
|
Oil/Gas
|
1,205
|
|||||||
Riviera
|
Riviera
Beach, FL
|
2
|
Oil/Gas
|
565
|
|||||||
St. Johns River Power
Park
|
Jacksonville,
FL
|
2
|
Coal/Petroleum
Coke
|
254
|
(c)
|
||||||
Sanford
|
Lake
Monroe, FL
|
1
|
Oil/Gas
|
138
|
|||||||
Scherer
|
Monroe
County, GA
|
1
|
Coal
|
646
|
(d)
|
||||||
Turkey Point
|
Florida
City, FL
|
2
|
Oil/Gas
|
788
|
|||||||
Combined-cycle
|
|||||||||||
Fort Myers
|
Fort
Myers, FL
|
1
|
Gas
|
1,440
|
|||||||
Lauderdale
|
Dania,
FL
|
2
|
Gas/Oil
|
884
|
|||||||
Manatee
|
Parrish,
FL
|
1
|
Gas
|
1,111
|
|||||||
Martin
|
Indiantown,
FL
|
1
|
Gas/Oil
|
1,105
|
|||||||
Martin
|
Indiantown,
FL
|
2
|
Gas
|
944
|
|||||||
Putnam
|
Palatka,
FL
|
2
|
Gas/Oil
|
498
|
|||||||
Sanford
|
Lake
Monroe, FL
|
2
|
Gas
|
1,912
|
|||||||
Turkey Point
|
Florida
City, FL
|
1
|
Gas/Oil
|
1,148
|
|||||||
Simple-cycle
combustion turbines
|
|||||||||||
Fort Myers
|
Fort
Myers, FL
|
1
|
Gas/Oil
|
318
|
|||||||
Gas
turbines/diesels
|
|||||||||||
Fort Myers
|
Fort
Myers, FL
|
12
|
Oil
|
648
|
|||||||
Lauderdale
|
Dania,
FL
|
24
|
Oil/Gas
|
840
|
|||||||
Port Everglades
|
Port
Everglades, FL
|
12
|
Oil/Gas
|
420
|
|||||||
Turkey Point
|
Florida
City, FL
|
5
|
Oil
|
12
|
|||||||
TOTAL
|
22,087
|
(e)
|
(a)
|
Represents
FPL's net ownership interest in plant capacity.
|
(b)
|
Excludes
Orlando Utilities Commission's and the FMPA's combined share of
approximately 15% of St. Lucie Unit No. 2.
|
(c)
|
Represents
FPL's 20% ownership interest in each of SJRPP Units Nos. 1 and 2,
which are jointly owned with JEA.
|
(d)
|
Represents
FPL's approximately 76% ownership of Scherer Unit No. 4, which is
jointly owned with JEA.
|
(e)
|
Substantially
all of FPL's properties are subject to the lien of FPL's
mortgage.
|
NextEra
Energy Resources Facilities
|
Location
|
No.
of
Units
|
Fuel
|
Net
Capability
(mw)
(a)
|
||||||
Wind
|
||||||||||
Ashtabula Wind
|
Barnes
County, ND
|
99
|
Wind
|
148
|
||||||
Cabazon (b)
|
Riverside
County, CA
|
53
|
Wind
|
40
|
||||||
Callahan Divide (b)
|
Taylor
County, TX
|
76
|
Wind
|
114
|
||||||
Capricorn Ridge
|
Sterling
& Coke Counties, TX
|
208
|
Wind
|
364
|
||||||
Capricorn Ridge
Expansion
|
Sterling
& Coke Counties, TX
|
199
|
Wind
|
298
|
||||||
Cerro Gordo (b)
|
Cerro
Gordo County, IA
|
55
|
Wind
|
41
|
||||||
Crystal Lake I (b)
|
Hancock
County, IA
|
100
|
Wind
|
150
|
||||||
Crystal Lake II
|
Winnebago
County, IA
|
76
|
Wind
|
190
|
||||||
Delaware
Mountain
|
Culberson
County, TX
|
38
|
Wind
|
28
|
||||||
Diablo Wind (b)
|
Alameda
County, CA
|
31
|
Wind
|
21
|
||||||
Endeavor Wind
|
Osceola
County, IA
|
40
|
Wind
|
100
|
||||||
Endeavor Wind
II
|
Osceola
County, IA
|
20
|
Wind
|
50
|
||||||
Gray County
|
Gray
County, KS
|
170
|
Wind
|
112
|
||||||
Green Mountain (b)
|
Somerset
County, PA
|
8
|
Wind
|
10
|
||||||
Green Power
|
Riverside
County, CA
|
22
|
Wind
|
17
|
||||||
Green Ridge Power (b)
|
Alameda
& Contra Costa Counties, CA
|
1,463
|
Wind
|
159
|
||||||
Hancock County (b)
|
Hancock
County, IA
|
148
|
Wind
|
98
|
||||||
High Winds (b)
|
Solano
County, CA
|
90
|
Wind
|
162
|
||||||
Horse Hollow Wind (b)
|
Taylor
County, TX
|
142
|
Wind
|
213
|
||||||
Horse Hollow Wind II (b)
|
Taylor
& Nolan Counties, TX
|
130
|
Wind
|
299
|
||||||
Horse Hollow Wind III (b)
|
Nolan
County, TX
|
149
|
Wind
|
224
|
||||||
Indian Mesa
|
Pecos
County, TX
|
125
|
Wind
|
83
|
||||||
King Mountain (b)
|
Upton
County, TX
|
214
|
Wind
|
278
|
||||||
Lake Benton II (b)
|
Pipestone
County, MN
|
138
|
Wind
|
104
|
||||||
Langdon Wind (b)
|
Cavalier
County, ND
|
79
|
Wind
|
118
|
||||||
Langdon Wind II (b)
|
Cavalier
County, ND
|
27
|
Wind
|
41
|
||||||
Logan Wind (c)
|
Logan
County, CO
|
134
|
Wind
|
201
|
||||||
Meyersdale (b)
|
Somerset
County, PA
|
20
|
Wind
|
30
|
||||||
Mill Run (b)
|
Fayette
County, PA
|
10
|
Wind
|
15
|
||||||
Montfort (b)
|
Iowa
County, WI
|
20
|
Wind
|
30
|
||||||
Mount Copper (b)
|
Murdochville,
Quebec, Canada
|
30
|
Wind
|
54
|
||||||
Mountaineer (b)
|
Preston
& Tucker Counties, WV
|
44
|
Wind
|
66
|
||||||
Mower County Wind (c)
|
Mower
County, MN
|
43
|
Wind
|
99
|
||||||
New Mexico Wind (b)
|
Quay
& Debaca Counties, NM
|
136
|
Wind
|
204
|
||||||
North Dakota Wind (b)
|
LaMoure
County, ND
|
41
|
Wind
|
62
|
||||||
Oklahoma / Sooner Wind (b)
|
Harper
& Woodward Counties, OK
|
68
|
Wind
|
102
|
||||||
Oliver County Wind I (c)
|
Oliver
County, ND
|
22
|
Wind
|
51
|
||||||
Oliver County Wind II (c)
|
Oliver
County, ND
|
32
|
Wind
|
48
|
||||||
Peetz Table Wind (c)
|
Logan
County, CO
|
133
|
Wind
|
199
|
||||||
Pubnico Point (b)
|
Yarmouth,
Nova Scotia, Canada
|
17
|
Wind
|
31
|
||||||
Red Canyon Wind Energy (b)
|
Borden,
Garza & Scurry Counties, TX
|
56
|
Wind
|
84
|
||||||
Sky River (b)
|
Kern
County, CA
|
342
|
Wind
|
77
|
||||||
Somerset Wind Power (b)
|
Somerset
County, PA
|
6
|
Wind
|
9
|
||||||
South Dakota Wind (b)
|
Hyde
County, SD
|
27
|
Wind
|
41
|
||||||
Southwest Mesa (b)
|
Upton
& Crockett Counties, TX
|
106
|
Wind
|
74
|
||||||
Stateline (b)
|
Umatilla
County, OR and Walla Walla County, WA
|
454
|
Wind
|
300
|
||||||
Story County
Wind
|
Story
County, IA
|
100
|
Wind
|
150
|
||||||
Vansycle (b)
|
Umatilla
County, OR
|
38
|
Wind
|
25
|
||||||
Victory Garden (b)
|
Kern
County, CA
|
96
|
Wind
|
22
|
||||||
Waymart (b)
|
Wayne
County, PA
|
43
|
Wind
|
65
|
||||||
Weatherford Wind (b)
|
Custer
& Washita Counties, OK
|
98
|
Wind
|
147
|
||||||
Wilton Wind (b)
|
Burleigh
County, ND
|
33
|
Wind
|
49
|
||||||
Windpower Partners
1991–92
|
Alameda
& Contra Costa Counties, CA
|
279
|
Wind
|
28
|
||||||
Windpower Partners
1992
|
Alameda
& Contra Costa Counties, CA
|
300
|
Wind
|
30
|
||||||
Windpower Partners
1993
|
Riverside
County, CA
|
115
|
Wind
|
41
|
||||||
Windpower Partners
1993
|
Lincoln
County, MN
|
73
|
Wind
|
26
|
||||||
Windpower Partners
1994
|
Culberson
County, TX
|
107
|
Wind
|
39
|
||||||
Wolf Ridge Wind
|
Cooke
County, TX
|
75
|
Wind
|
112
|
||||||
Woodward
Mountain
|
Upton
& Pecos Counties, TX
|
242
|
Wind
|
160
|
||||||
Wyoming Wind (b)
|
Uinta
County, WY
|
80
|
Wind
|
144
|
||||||
Investments in joint ventures
(d)
|
Various
|
969
|
(d)
|
98
|
||||||
Total Wind
|
6,375
|
NextEra
Energy Resources Facilities
|
Location
|
No.
of
Units
|
Fuel
|
Net
Capability
(mw)
(a)
|
|||||||
Contracted
|
|||||||||||
Bayswater (b)
|
Far
Rockaway, NY
|
2
|
Gas
|
56
|
|||||||
Calhoun
|
Eastaboga,
AL
|
4
|
Gas
|
668
|
|||||||
Cherokee (b)
|
Gaffney,
SC
|
2
|
Gas/Oil
|
98
|
|||||||
Doswell (b)
|
Ashland,
VA
|
6
|
Gas/Oil
|
708
|
|||||||
Duane Arnold
|
Palo,
IA
|
1
|
Nuclear
|
424
|
(e)
|
||||||
Jamaica Bay (b)
|
Far
Rockaway, NY
|
2
|
Oil/Gas
|
54
|
|||||||
Point Beach
|
Two
Rivers, WI
|
2
|
Nuclear
|
1,023
|
|||||||
Port of
Stockton
|
Stockton,
CA
|
1
|
Coal/Petroleum Coke
|
44
|
|||||||
Investments in joint
ventures:
|
|||||||||||
SEGS III–IX
|
Kramer
Junction and Harper Lake, CA
|
7
|
Solar
|
148
|
|||||||
Other
|
Various
|
9
|
(f)
|
314
|
|||||||
Total
Contracted
|
3,537
|
||||||||||
Merchant
|
|||||||||||
Blythe Energy
|
Blythe,
CA
|
3
|
Gas
|
507
|
|||||||
Doswell – Expansion (b)
|
Ashland,
VA
|
1
|
Gas/Oil
|
171
|
|||||||
Forney
|
Forney,
TX
|
8
|
Gas
|
1,789
|
|||||||
Lamar Power
Partners
|
Paris,
TX
|
6
|
Gas
|
1,000
|
|||||||
Maine – Cape,
Wyman
|
Various
– ME
|
6
|
Oil
|
744
|
(g)
|
||||||
Maine (b)
|
Various
– ME
|
81
|
Hydro
|
359
|
|||||||
Marcus Hook 50
|
Marcus
Hook, PA
|
1
|
Gas
|
50
|
|||||||
Marcus Hook 750 (b)
|
Marcus
Hook, PA
|
4
|
Gas
|
744
|
|||||||
RISEP
|
Johnston,
RI
|
3
|
Gas
|
550
|
|||||||
Seabrook
|
Seabrook,
NH
|
1
|
Nuclear
|
1,098
|
(h)
|
||||||
Investment in joint
venture
|
Frackville,
PA
|
1
|
Waste
coal
|
4
|
|||||||
Total Merchant
|
7,016
|
||||||||||
TOTAL
|
16,928
|
(a)
|
Represents
NextEra Energy Resources' net ownership interest in plant
capacity.
|
(b)
|
These
consolidated generating facilities are encumbered by liens against their
assets securing various financings.
|
(c)
|
NextEra
Energy Resources owns these wind facilities together with third party
investors with differential membership interests. See
Note 11 – Sale of Differential Membership
Interests.
|
(d)
|
Represents
plants with no more than 50% ownership using wind
technology. Certain facilities, totaling 57 mw, are encumbered
by liens against their assets securing a financing.
|
(e)
|
Excludes
Central Iowa Power Cooperative and Cornbelt Power Cooperative's combined
share of 30%.
|
(f)
|
Represents
plants with no more than 50% ownership using fuels and technologies such
as natural gas, waste-to-energy and coal.
|
(g)
|
Excludes
seven other energy-related partners' combined share of
24%.
|
(h)
|
Excludes
Massachusetts Municipal Wholesale Electric Company's, Taunton Municipal
Lighting Plant's and Hudson Light & Power Department's combined share
of 11.77%.
|
Nominal
Voltage
|
Overhead
Lines
Pole
Miles
|
Trench
and Submarine
Cables
Miles
|
|||||||
500
|
kv
|
1,106
|
(a)
|
-
|
|||||
230
|
kv
|
2,997
|
25
|
||||||
138
|
kv
|
1,619
|
50
|
||||||
115
|
kv
|
733
|
-
|
||||||
69
|
kv
|
164
|
14
|
||||||
Less
than 69 kv
|
41,668
|
24,981
|
|||||||
Total
|
48,287
|
25,070
|
(a)
|
Includes
approximately 75 miles owned jointly with
JEA.
|
2008
|
2007
|
|||||||||||||||||||
Quarter
|
High
|
Low
|
Cash
Dividends
|
High
|
Low
|
Cash
Dividends
|
||||||||||||||
First
|
$
|
73.75
|
$
|
57.21
|
$
|
0.445
|
$
|
63.07
|
$
|
53.72
|
$
|
0.41
|
||||||||
Second
|
$
|
68.98
|
$
|
62.75
|
$
|
0.445
|
$
|
66.52
|
$
|
56.18
|
$
|
0.41
|
||||||||
Third
|
$
|
68.76
|
$
|
49.74
|
$
|
0.445
|
$
|
64.20
|
$
|
54.61
|
$
|
0.41
|
||||||||
Fourth
|
$
|
51.87
|
$
|
33.81
|
$
|
0.445
|
$
|
72.77
|
$
|
60.26
|
$
|
0.41
|
Period
|
Total
Number
of
Shares
Purchased
(a)
|
Average
Price
Paid
Per
Share (a)
|
Total
Number of
Shares
Purchased as Part of a
Publicly
Announced Program
|
Maximum
Number of
Shares
that May Yet be
Purchased
Under the Program (b)
|
|||||||||||
10/1/08
– 10/31/08
|
106
|
$
|
48.40
|
-
|
20,000,000
|
||||||||||
11/1/08
– 11/30/08
|
52,205
|
$
|
46.94
|
-
|
20,000,000
|
||||||||||
12/1/08
– 12/31/08
|
1,774
|
$
|
50.33
|
-
|
20,000,000
|
||||||||||
Total
|
54,085
|
-
|
(a)
|
Represents
shares of common stock withheld from employees to pay certain withholding
taxes upon the vesting of stock awards granted to such employees under the
LTIP.
|
(b)
|
In
February 2005, FPL Group's Board of Directors authorized a common stock
repurchase plan of up to 20 million shares of common stock over an
unspecified period, which authorization was ratified and confirmed by the
Board of Directors in December
2005.
|
Years
Ended December 31,
|
|||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||
SELECTED
DATA OF FPL GROUP (millions, except per share amounts):
|
|||||||||||||||
Operating
revenues
|
$
|
16,410
|
$
|
15,263
|
$
|
15,710
|
$
|
11,846
|
$
|
10,522
|
|||||
Net income
|
$
|
1,639
|
(a)
|
$
|
1,312
|
(a)
|
$
|
1,281
|
(b)
|
$
|
901
|
(c)
|
$
|
896
|
(d)
|
Earnings per share of common
stock – basic
|
$
|
4.10
|
(a)
|
$
|
3.30
|
(a)
|
$
|
3.25
|
(b)
|
$
|
2.37
|
(c)
|
$
|
2.50
|
(d)
|
Earnings per share of common
stock – assuming dilution
|
$
|
4.07
|
(a)
|
$
|
3.27
|
(a)
|
$
|
3.23
|
(b)
|
$
|
2.34
|
(c)
|
$
|
2.48
|
(d)
|
Dividends paid per share of
common stock
|
$
|
1.78
|
$
|
1.64
|
$
|
1.50
|
$
|
1.42
|
$
|
1.30
|
|||||
Total assets
|
$
|
44,821
|
$
|
40,123
|
$
|
35,822
|
$
|
32,599
|
$
|
28,324
|
|||||
Long-term debt, excluding
current maturities
|
$
|
13,833
|
$
|
11,280
|
$
|
9,591
|
$
|
8,039
|
$
|
8,027
|
|||||
SELECTED
DATA OF FPL (millions):
|
|||||||||||||||
Operating
revenues
|
$
|
11,649
|
$
|
11,622
|
$
|
11,988
|
$
|
9,528
|
$
|
8,734
|
|||||
Net income available to FPL
Group
|
$
|
789
|
$
|
836
|
$
|
802
|
$
|
748
|
$
|
749
|
|||||
Total assets
|
$
|
26,175
|
$
|
24,044
|
$
|
22,970
|
$
|
22,347
|
$
|
19,114
|
|||||
Long-term debt, excluding
current maturities
|
$
|
5,311
|
$
|
4,976
|
$
|
4,214
|
$
|
3,271
|
$
|
2,813
|
|||||
Energy sales
(kwh)
|
105,406
|
108,636
|
107,513
|
105,648
|
103,635
|
||||||||||
Energy sales:
|
|||||||||||||||
Residential
|
50.5
|
%
|
50.8
|
%
|
50.8
|
%
|
51.4
|
%
|
50.7
|
%
|
|||||
Commercial
|
43.2
|
42.3
|
41.4
|
41.1
|
40.6
|
||||||||||
Industrial
|
3.4
|
3.5
|
3.8
|
3.7
|
3.8
|
||||||||||
Interchange power
sales
|
1.6
|
1.8
|
2.1
|
2.0
|
2.9
|
||||||||||
Other (e)
|
1.3
|
1.6
|
1.9
|
1.8
|
2.0
|
||||||||||
Total
|
100
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Approximate 60-minute peak load
(mw): (f)
|
|||||||||||||||
Summer season
|
21,060
|
21,962
|
21,819
|
22,361
|
20,545
|
||||||||||
Winter season
|
20,031
|
18,055
|
17,260
|
19,683
|
18,108
|
||||||||||
Average number of customer
accounts (thousands):
|
|||||||||||||||
Residential
|
3,992
|
3,981
|
3,906
|
3,828
|
3,745
|
||||||||||
Commercial
|
501
|
493
|
479
|
470
|
458
|
||||||||||
Industrial
|
13
|
19
|
21
|
20
|
19
|
||||||||||
Other
|
4
|
4
|
4
|
4
|
3
|
||||||||||
Total
|
4,510
|
4,497
|
4,410
|
4,322
|
4,225
|
||||||||||
Average price billed to
customers (cents per kwh)
|
10.96
|
10.63
|
11.14
|
8.88
|
8.36
|
(a)
|
Includes
net unrealized mark-to-market gains or losses associated with
non-qualifying hedges and other than temporary impairment
losses.
|
(b)
|
Includes
expenses related to a terminated merger, net unrealized mark-to-market
gains associated with non-qualifying hedges, impairment charges and an
Indonesian project gain.
|
(c)
|
Includes
net unrealized mark-to-market gains or losses associated with
non-qualifying hedges.
|
(d)
|
Includes
impairment and restructuring charges and net unrealized mark-to-market
losses associated with non-qualifying hedges.
|
(e)
|
Includes
the net change in unbilled sales.
|
(f)
|
Winter
season includes November and December of the current year and January to
March of the following year (for 2008, through February 26,
2009).
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(millions)
|
||||||||||||
FPL
|
$ | 789 | $ | 836 | $ | 802 | ||||||
NextEra
Energy Resources
|
915 | 540 | 610 | |||||||||
Corporate
and Other
|
(65 | ) | (64 | ) | (131 | ) | ||||||
FPL
Group Consolidated
|
$ | 1,639 | $ | 1,312 | $ | 1,281 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(millions)
|
||||||||||||
Retail
base
|
$ | 3,738 | $ | 3,796 | $ | 3,657 | ||||||
Fuel
cost recovery
|
<