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
|
NEXTERA ENERGY, INC.
|
59-2449419
|
||
2-27612
|
FLORIDA POWER & LIGHT COMPANY
|
59-0247775
|
||
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 694-4000
|
NextEra Energy, Inc. Yes þ No ¨ Florida Power & Light Company Yes þ No ¨
|
NextEra Energy, Inc. Yes þ No ¨ Florida Power & Light Company Yes þ No ¨
|
NextEra Energy, 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 ¨
|
Page No.
|
||
Forward-Looking Statements
|
2
|
|
PART I - FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
5
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
33
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
49
|
Item 4.
|
Controls and Procedures
|
49
|
PART II - OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
50
|
Item 1A.
|
Risk Factors
|
50
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
50
|
Item 5.
|
Other Information
|
51
|
Item 6.
|
Exhibits
|
52
|
Signatures
|
54
|
·
|
NextEra Energy’s and FPL’s financial results may be adversely affected by the extensive regulation of their businesses.
|
|
·
|
NextEra Energy’s and FPL’s financial results could be negatively affected if they or their rate-regulated businesses are unable to recover, in a timely manner, certain costs, a return on certain assets or an appropriate return on capital from customers through regulated rates and, in the case of FPL, cost recovery clauses.
|
|
·
|
NextEra Energy and FPL are subject to federal regulatory compliance and proceedings which have significant compliance costs and expose them to substantial monetary penalties and other sanctions.
|
|
·
|
NextEra Energy and FPL may be adversely affected by increased governmental and regulatory scrutiny or negative publicity.
|
|
·
|
NextEra Energy’s and FPL’s businesses are subject to risks associated with legislative and regulatory initiatives.
|
|
·
|
NextEra Energy and FPL are subject to numerous environmental laws and regulations that require capital expenditures, increase their cost of operations and may expose them to liabilities.
|
|
·
|
NextEra Energy’s and FPL’s businesses could be negatively affected by federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions.
|
·
|
The construction, operation and maintenance of nuclear generation facilities involve risks that could result in fines or the closure of nuclear generation facilities owned by NextEra Energy or FPL and in increased costs and capital expenditures.
|
|
·
|
NextEra Energy’s and FPL’s operating results could suffer if they do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, generation, transmission, distribution or other facilities on schedule or within budget.
|
|
·
|
The operation and maintenance of power generation, transmission and distribution facilities involve significant risks that could adversely affect the financial results of NextEra Energy and FPL.
|
|
·
|
NextEra Energy and FPL are subject to operating risks associated with their natural gas and oil storage and pipeline infrastructure, and the use of such fuels in their generation facilities.
|
|
·
|
NextEra Energy’s competitive energy business is subject to development and operating risks that could limit the revenue growth of this business and have other negative effects on NextEra Energy’s financial results.
|
|
·
|
NextEra Energy’s competitive energy business is dependent on continued public policy support and governmental support for renewable energy, particularly wind and solar projects.
|
|
·
|
NextEra Energy and FPL are subject to credit and performance risk from customers, counterparties and vendors.
|
|
·
|
NextEra Energy’s and FPL’s financial results may continue to be negatively affected by slower customer growth and customer usage.
|
|
·
|
NextEra Energy’s and FPL’s financial results are subject to risks associated with weather conditions, such as the impact of severe weather.
|
|
·
|
Disruptions, uncertainty or volatility in the credit and capital markets may negatively affect NextEra Energy’s and FPL’s ability to fund their liquidity and capital needs and to meet their growth objectives, and can also adversely affect the results of operations and financial condition of NextEra Energy and FPL and exert downward pressure on the market price of NextEra Energy’s common stock.
|
|
·
|
NextEra Energy’s, NextEra Energy Capital Holdings, Inc.'s (Capital Holdings) and FPL’s inability to maintain their current credit ratings may adversely affect NextEra Energy’s and FPL’s liquidity, limit the ability of NextEra Energy and FPL to grow their businesses, and increase interest costs, while the liquidity of the companies also could be impaired by the inability of their credit providers to maintain their current credit ratings or to fund their credit commitments.
|
|
·
|
The use of derivative contracts by NextEra Energy and FPL in the normal course of business could result in financial losses or the payment of margin cash collateral that could adversely affect their financial results and liquidity.
|
|
·
|
NextEra Energy’s and FPL’s financial results and liquidity could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of its provisions regarding the regulation of over-the-counter (OTC) financial derivatives and make them applicable to NextEra Energy and FPL.
|
|
·
|
NextEra Energy’s ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry.
|
|
·
|
NextEra Energy may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to NextEra Energy or if NextEra Energy is required to perform under guarantees of obligations of its subsidiaries.
|
|
·
|
Changes in tax laws, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could adversely affect NextEra Energy’s and FPL’s financial results, financial condition and liquidity.
|
|
·
|
NextEra Energy’s and FPL’s retail businesses are subject to the risk that sensitive customer data may be compromised, which could result in an adverse impact to their reputation and/or the financial results of the retail businesses.
|
|
·
|
A failure in NextEra Energy’s and FPL’s operational systems or infrastructure, or those of third parties, could impair their liquidity, disrupt their businesses, result in the disclosure of confidential information and adversely affect their financial results.
|
|
·
|
Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt NextEra Energy’s and FPL’s businesses, or the businesses of third parties, may impact the operations of NextEra Energy and FPL in unpredictable ways and could adversely affect NextEra Energy’s and FPL’s financial results and liquidity.
|
·
|
The ability of NextEra Energy and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NextEra Energy’s and FPL’s insurance coverage may not provide protection against all significant losses.
|
|
·
|
The businesses and financial results of NextEra Energy and FPL could be negatively affected by the lack of a qualified workforce, work strikes or stoppages and increasing personnel costs.
|
|
·
|
Certain of NextEra Energy’s and FPL’s investments are subject to changes in market value and other risks, which may adversely affect NextEra Energy’s and FPL’s liquidity and financial results.
|
|
·
|
Increasing costs associated with health care plans may adversely affect NextEra Energy's and FPL's financial results.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
OPERATING REVENUES
|
$ | 3,961 | $ | 3,591 | $ | 7,094 | $ | 7,213 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Fuel, purchased power and interchange
|
1,557 | 1,455 | 2,962 | 2,804 | ||||||||||||
Other operations and maintenance
|
771 | 752 | 1,463 | 1,411 | ||||||||||||
Impairment charges
|
51 | - | 51 | - | ||||||||||||
Depreciation and amortization
|
408 | 386 | 740 | 800 | ||||||||||||
Taxes other than income taxes and other
|
267 | 289 | 543 | 550 | ||||||||||||
Total operating expenses
|
3,054 | 2,882 | 5,759 | 5,565 | ||||||||||||
OPERATING INCOME
|
907 | 709 | 1,335 | 1,648 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Interest expense
|
(256 | ) | (247 | ) | (510 | ) | (485 | ) | ||||||||
Equity in earnings of equity method investees
|
18 | 15 | 29 | 23 | ||||||||||||
Allowance for equity funds used during construction
|
10 | 9 | 22 | 15 | ||||||||||||
Interest income
|
16 | 28 | 37 | 47 | ||||||||||||
Gains on disposal of assets - net
|
25 | 9 | 42 | 48 | ||||||||||||
Other - net
|
7 | (29 | ) | 8 | (32 | ) | ||||||||||
Total other deductions - net
|
(180 | ) | (215 | ) | (372 | ) | (384 | ) | ||||||||
INCOME BEFORE INCOME TAXES
|
727 | 494 | 963 | 1,264 | ||||||||||||
INCOME TAXES
|
147 | 77 | 115 | 291 | ||||||||||||
NET INCOME
|
$ | 580 | $ | 417 | $ | 848 | $ | 973 | ||||||||
Earnings per share of common stock:
|
||||||||||||||||
Basic
|
$ | 1.39 | $ | 1.02 | $ | 2.04 | $ | 2.38 | ||||||||
Assuming dilution
|
$ | 1.38 | $ | 1.01 | $ | 2.03 | $ | 2.37 | ||||||||
Dividends per share of common stock
|
$ | 0.55 | $ | 0.50 | $ | 1.10 | $ | 1.00 | ||||||||
Weighted-average number of common shares outstanding:
|
||||||||||||||||
Basic
|
416.9 | 408.9 | 416.4 | 408.2 | ||||||||||||
Assuming dilution
|
419.3 | 411.4 | 418.9 | 410.7 |
June 30,
2011
|
December 31,
2010
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric utility plant in service and other property
|
$ | 50,944 | $ | 48,841 | ||||
Nuclear fuel
|
1,519 | 1,539 | ||||||
Construction work in progress
|
3,678 | 3,841 | ||||||
Less accumulated depreciation and amortization
|
(15,287 | ) | (15,146 | ) | ||||
Total property, plant and equipment - net ($3,376 and $2,398 related to VIEs, respectively)
|
40,854 | 39,075 | ||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
287 | 302 | ||||||
Customer receivables, net of allowances of $10 and $20, respectively
|
1,633 | 1,509 | ||||||
Other receivables
|
500 | 1,073 | ||||||
Materials, supplies and fossil fuel inventory
|
1,072 | 857 | ||||||
Regulatory assets:
|
||||||||
Deferred clause and franchise expenses
|
359 | 368 | ||||||
Derivatives
|
141 | 236 | ||||||
Other
|
84 | 82 | ||||||
Derivatives
|
333 | 506 | ||||||
Other
|
404 | 325 | ||||||
Total current assets
|
4,813 | 5,258 | ||||||
OTHER ASSETS
|
||||||||
Special use funds
|
3,905 | 3,742 | ||||||
Other investments
|
954 | 971 | ||||||
Prepaid benefit costs
|
1,298 | 1,259 | ||||||
Regulatory assets:
|
||||||||
Securitized storm-recovery costs ($338 and $356 related to a VIE, respectively)
|
550 | 581 | ||||||
Other
|
397 | 329 | ||||||
Derivatives
|
462 | 589 | ||||||
Other
|
1,324 | 1,190 | ||||||
Total other assets
|
8,890 | 8,661 | ||||||
TOTAL ASSETS
|
$ | 54,557 | $ | 52,994 | ||||
CAPITALIZATION
|
||||||||
Common stock
|
$ | 4 | $ | 4 | ||||
Additional paid-in capital
|
5,525 | 5,418 | ||||||
Retained earnings
|
9,262 | 8,873 | ||||||
Accumulated other comprehensive income
|
115 | 166 | ||||||
Total common shareholders' equity
|
14,906 | 14,461 | ||||||
Long-term debt ($1,746 and $1,338 related to VIEs, respectively)
|
19,235 | 18,013 | ||||||
Total capitalization
|
34,141 | 32,474 | ||||||
CURRENT LIABILITIES
|
||||||||
Commercial paper
|
1,050 | 889 | ||||||
Current maturities of long-term debt
|
1,168 | 1,920 | ||||||
Accounts payable
|
1,280 | 1,124 | ||||||
Customer deposits
|
638 | 634 | ||||||
Accrued interest and taxes
|
622 | 462 | ||||||
Regulatory liabilities:
|
||||||||
Deferred clause and franchise revenues
|
29 | 47 | ||||||
Other
|
2 | 4 | ||||||
Derivatives
|
389 | 536 | ||||||
Accrued construction-related expenditures
|
388 | 371 | ||||||
Other
|
823 | 917 | ||||||
Total current liabilities
|
6,389 | 6,904 | ||||||
OTHER LIABILITIES AND DEFERRED CREDITS
|
||||||||
Asset retirement obligations
|
1,587 | 1,639 | ||||||
Accumulated deferred income taxes
|
5,281 | 5,109 | ||||||
Regulatory liabilities:
|
||||||||
Accrued asset removal costs
|
2,191 | 2,244 | ||||||
Asset retirement obligation regulatory expense difference
|
1,666 | 1,592 | ||||||
Other
|
446 | 423 | ||||||
Derivatives
|
235 | 243 | ||||||
Deferral related to differential membership interests - VIEs
|
1,101 | 949 | ||||||
Other
|
1,520 | 1,417 | ||||||
Total other liabilities and deferred credits
|
14,027 | 13,616 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
TOTAL CAPITALIZATION AND LIABILITIES
|
$ | 54,557 | $ | 52,994 |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 848 | $ | 973 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
740 | 800 | ||||||
Nuclear fuel amortization
|
131 | 140 | ||||||
Impairment charges
|
51 | - | ||||||
Unrealized (gains) losses on marked to market energy contracts
|
86 | (291 | ) | |||||
Deferred income taxes
|
156 | 280 | ||||||
Cost recovery clauses and franchise fees
|
(32 | ) | (600 | ) | ||||
Changes in prepaid option premiums and derivative settlements
|
8 | 166 | ||||||
Equity in earnings of equity method investees
|
(29 | ) | (23 | ) | ||||
Distributions of earnings from equity method investees
|
48 | 21 | ||||||
Allowance for equity funds used during construction
|
(22 | ) | (15 | ) | ||||
Gains on disposal of assets - net
|
(42 | ) | (48 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Customer receivables
|
(123 | ) | (54 | ) | ||||
Other receivables
|
113 | 17 | ||||||
Materials, supplies and fossil fuel inventory
|
(214 | ) | 51 | |||||
Other current assets
|
(75 | ) | (205 | ) | ||||
Other assets
|
(119 | ) | 95 | |||||
Accounts payable
|
193 | 360 | ||||||
Income taxes
|
94 | (4 | ) | |||||
Interest and other taxes
|
193 | 151 | ||||||
Other current liabilities
|
(64 | ) | (87 | ) | ||||
Other liabilities
|
(37 | ) | (35 | ) | ||||
Other - net
|
87 | 56 | ||||||
Net cash provided by operating activities
|
1,991 | 1,748 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures of FPL
|
(1,471 | ) | (1,462 | ) | ||||
Independent power and other investments of NextEra Energy Resources
|
(1,074 | ) | (1,168 | ) | ||||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
486 | 511 | ||||||
Nuclear fuel purchases
|
(159 | ) | (98 | ) | ||||
Other capital expenditures
|
(156 | ) | (29 | ) | ||||
Proceeds from sale or maturity of securities in special use funds
|
2,575 | 4,138 | ||||||
Purchases of securities in special use funds
|
(2,621 | ) | (4,198 | ) | ||||
Proceeds from sale or maturity of other securities
|
319 | 438 | ||||||
Purchases of other securities
|
(343 | ) | (427 | ) | ||||
Other - net
|
85 | 12 | ||||||
Net cash used in investing activities
|
(2,359 | ) | (2,283 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Issuances of long-term debt
|
1,453 | 1,585 | ||||||
Retirements of long-term debt
|
(991 | ) | (269 | ) | ||||
Proceeds from sale of differential membership interests
|
210 | 190 | ||||||
Net change in short-term debt
|
160 | (54 | ) | |||||
Issuances of common stock - net
|
33 | 69 | ||||||
Dividends on common stock
|
(459 | ) | (410 | ) | ||||
Other - net
|
(53 | ) | 15 | |||||
Net cash provided by financing activities
|
353 | 1,126 | ||||||
Net increase (decrease) in cash and cash equivalents
|
(15 | ) | 591 | |||||
Cash and cash equivalents at beginning of period
|
302 | 238 | ||||||
Cash and cash equivalents at end of period
|
$ | 287 | $ | 829 | ||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
||||||||
Accrued property additions
|
$ | 570 | $ | 555 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
OPERATING REVENUES
|
$ | 2,801 | $ | 2,580 | $ | 5,047 | $ | 4,908 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Fuel, purchased power and interchange
|
1,304 | 1,205 | 2,375 | 2,312 | ||||||||||||
Other operations and maintenance
|
434 | 424 | 808 | 797 | ||||||||||||
Depreciation and amortization
|
212 | 193 | 354 | 422 | ||||||||||||
Taxes other than income taxes and other
|
280 | 257 | 532 | 483 | ||||||||||||
Total operating expenses
|
2,230 | 2,079 | 4,069 | 4,014 | ||||||||||||
OPERATING INCOME
|
571 | 501 | 978 | 894 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Interest expense
|
(96 | ) | (91 | ) | (187 | ) | (179 | ) | ||||||||
Allowance for equity funds used during construction
|
9 | 9 | 21 | 15 | ||||||||||||
Other - net
|
1 | (1 | ) | (1 | ) | - | ||||||||||
Total other deductions - net
|
(86 | ) | (83 | ) | (167 | ) | (164 | ) | ||||||||
INCOME BEFORE INCOME TAXES
|
485 | 418 | 811 | 730 | ||||||||||||
INCOME TAXES
|
184 | 153 | 305 | 274 | ||||||||||||
NET INCOME
|
$ | 301 | $ | 265 | $ | 506 | $ | 456 |
June 30,
2011
|
December 31,
2010
|
|||||||
ELECTRIC UTILITY PLANT
|
||||||||
Plant in service
|
$ | 30,895 | $ | 29,519 | ||||
Nuclear fuel
|
815 | 729 | ||||||
Construction work in progress
|
1,748 | 2,175 | ||||||
Less accumulated depreciation and amortization
|
(10,883 | ) | (10,871 | ) | ||||
Electric utility plant - net
|
22,575 | 21,552 | ||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
41 | 20 | ||||||
Customer receivables, net of allowances of $9 and $17, respectively
|
832 | 710 | ||||||
Other receivables
|
329 | 395 | ||||||
Materials, supplies and fossil fuel inventory
|
687 | 505 | ||||||
Regulatory assets:
|
||||||||
Deferred clause and franchise expenses
|
359 | 368 | ||||||
Derivatives
|
141 | 236 | ||||||
Other
|
77 | 76 | ||||||
Other
|
204 | 145 | ||||||
Total current assets
|
2,670 | 2,455 | ||||||
OTHER ASSETS
|
||||||||
Special use funds
|
2,744 | 2,637 | ||||||
Prepaid benefit costs
|
1,062 | 1,035 | ||||||
Regulatory assets:
|
||||||||
Securitized storm-recovery costs ($338 and $356 related to a VIE, respectively)
|
550 | 581 | ||||||
Other
|
363 | 293 | ||||||
Other
|
164 | 145 | ||||||
Total other assets
|
4,883 | 4,691 | ||||||
TOTAL ASSETS
|
$ | 30,128 | $ | 28,698 | ||||
CAPITALIZATION
|
||||||||
Common stock
|
$ | 1,373 | $ | 1,373 | ||||
Additional paid-in capital
|
5,053 | 5,054 | ||||||
Retained earnings
|
3,451 | 3,364 | ||||||
Total common shareholder's equity
|
9,877 | 9,791 | ||||||
Long-term debt ($460 and $486 related to a VIE, respectively)
|
6,908 | 6,682 | ||||||
Total capitalization
|
16,785 | 16,473 | ||||||
CURRENT LIABILITIES
|
||||||||
Commercial paper
|
655 | 101 | ||||||
Current maturities of long-term debt
|
48 | 45 | ||||||
Accounts payable
|
675 | 554 | ||||||
Customer deposits
|
632 | 628 | ||||||
Accrued interest and taxes
|
427 | 311 | ||||||
Regulatory liabilities - deferred clause and franchise revenues
|
29 | 47 | ||||||
Derivatives
|
148 | 245 | ||||||
Accrued construction-related expenditures
|
183 | 183 | ||||||
Other
|
384 | 394 | ||||||
Total current liabilities
|
3,181 | 2,508 | ||||||
OTHER LIABILITIES AND DEFERRED CREDITS
|
||||||||
Asset retirement obligations
|
1,112 | 1,083 | ||||||
Accumulated deferred income taxes
|
4,214 | 3,835 | ||||||
Regulatory liabilities:
|
||||||||
Accrued asset removal costs
|
2,191 | 2,244 | ||||||
Asset retirement obligation regulatory expense difference
|
1,666 | 1,592 | ||||||
Other
|
408 | 377 | ||||||
Other
|
571 | 586 | ||||||
Total other liabilities and deferred credits
|
10,162 | 9,717 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
TOTAL CAPITALIZATION AND LIABILITIES
|
$ | 30,128 | $ | 28,698 |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 506 | $ | 456 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
354 | 422 | ||||||
Nuclear fuel amortization
|
72 | 66 | ||||||
Deferred income taxes
|
358 | 135 | ||||||
Cost recovery clauses and franchise fees
|
(32 | ) | (600 | ) | ||||
Allowance for equity funds used during construction
|
(21 | ) | (15 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Customer receivables
|
(122 | ) | 4 | |||||
Other receivables
|
33 | (15 | ) | |||||
Materials, supplies and fossil fuel inventory
|
(182 | ) | 59 | |||||
Other current assets
|
(65 | ) | (99 | ) | ||||
Other assets
|
(34 | ) | 16 | |||||
Accounts payable
|
147 | 330 | ||||||
Income taxes
|
(133 | ) | 54 | |||||
Interest and other taxes
|
166 | 145 | ||||||
Other current liabilities
|
6 | (18 | ) | |||||
Other liabilities
|
(18 | ) | (3 | ) | ||||
Other - net
|
1 | 79 | ||||||
Net cash provided by operating activities
|
1,036 | 1,016 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(1,471 | ) | (1,462 | ) | ||||
Cash grants under the American Recovery and Reinvestment Act of 2009
|
185 | 85 | ||||||
Nuclear fuel purchases
|
(111 | ) | (24 | ) | ||||
Proceeds from sale or maturity of securities in special use funds
|
1,808 | 3,313 | ||||||
Purchases of securities in special use funds
|
(1,841 | ) | (3,360 | ) | ||||
Other - net
|
32 | 32 | ||||||
Net cash used in investing activities
|
(1,398 | ) | (1,416 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Issuances of long-term debt
|
248 | 514 | ||||||
Retirements of long-term debt
|
(24 | ) | (22 | ) | ||||
Net change in short-term debt
|
554 | 71 | ||||||
Capital contribution from NextEra Energy
|
- | 135 | ||||||
Dividends
|
(400 | ) | - | |||||
Other - net
|
5 | (2 | ) | |||||
Net cash provided by financing activities
|
383 | 696 | ||||||
Net increase in cash and cash equivalents
|
21 | 296 | ||||||
Cash and cash equivalents at beginning of period
|
20 | 83 | ||||||
Cash and cash equivalents at end of period
|
$ | 41 | $ | 379 | ||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
||||||||
Accrued property additions
|
$ | 263 | $ | 294 |
Pension Benefits
|
Other Benefits
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
(millions)
|
||||||||||||||||||||||||||||||||
Service cost
|
$ | 16 | $ | 15 | $ | 2 | $ | 1 | $ | 32 | $ | 30 | $ | 3 | $ | 3 | ||||||||||||||||
Interest cost
|
25 | 25 | 5 | 6 | 49 | 51 | 11 | 11 | ||||||||||||||||||||||||
Expected return on plan assets
|
(60 | ) | (60 | ) | (1 | ) | (1 | ) | (119 | ) | (120 | ) | (1 | ) | (1 | ) | ||||||||||||||||
Amortization of transition obligation
|
- | - | 1 | 1 | - | - | 1 | 2 | ||||||||||||||||||||||||
Amortization of prior service benefit
|
(1 | ) | (1 | ) | - | - | (1 | ) | (2 | ) | - | - | ||||||||||||||||||||
Net periodic benefit (income) cost at NextEra Energy
|
$ | (20 | ) | $ | (21 | ) | $ | 7 | $ | 7 | $ | (39 | ) | $ | (41 | ) | $ | 14 | $ | 15 | ||||||||||||
Net periodic benefit (income) cost at FPL
|
$ | (13 | ) | $ | (14 | ) | $ | 5 | $ | 6 | $ | (26 | ) | $ | (28 | ) | $ | 10 | $ | 11 |
NextEra Energy
|
FPL
|
|||||||||||
June 30,
2011
|
December 31,
2010
|
June 30,
2011
|
December 31,
2010
|
|||||||||
(millions)
|
||||||||||||
Current derivative assets(a)
|
$
|
333
|
$
|
506
|
$
|
7
|
(b)
|
$
|
8
|
(b)
|
||
Noncurrent derivative assets(c)
|
462
|
589
|
4
|
(d)
|
1
|
(d)
|
||||||
Current derivative liabilities(e)
|
(389
|
)
|
(536
|
)
|
(148
|
)
|
(245
|
)
|
||||
Noncurrent derivative liabilities(f)
|
(235
|
)
|
(243
|
)
|
(3
|
)(g)
|
-
|
(g)
|
||||
Total mark-to-market derivative instrument assets (liabilities)
|
$
|
171
|
$
|
316
|
$
|
(140
|
)
|
$
|
(236
|
)
|
(a)
|
At June 30, 2011 and December 31, 2010, NextEra Energy's balances reflect the netting of approximately $42 million and $23 million (none at FPL), respectively, in margin cash collateral received from counterparties.
|
(b)
|
Included in current other assets on FPL's condensed consolidated balance sheets.
|
(c)
|
At June 30, 2011 and December 31, 2010, NextEra Energy's balances reflect the netting of approximately $29 million and $43 million (none at FPL), respectively, in margin cash collateral received from counterparties.
|
(d)
|
Included in noncurrent other assets on FPL's condensed consolidated balance sheets.
|
(e)
|
At June 30, 2011 and December 31, 2010, NextEra Energy's balances reflect the netting of approximately $18 million and $23 million (none at FPL), respectively, in margin cash collateral provided to counterparties.
|
(f)
|
At June 30, 2011 and December 31, 2010, NextEra Energy's balances reflect the netting of approximately $65 million and $72 million (none at FPL), respectively, in margin cash collateral provided to counterparties.
|
(g)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
|||||||||||||
(millions)
|
||||||||||||||||
Interest rate swaps:
|
||||||||||||||||
Current derivative assets
|
$ | 11 | $ | - | $ | 16 | $ | - | ||||||||
Current derivative liabilities
|
- | 65 | - | 64 | ||||||||||||
Noncurrent derivative assets
|
41 | - | 91 | - | ||||||||||||
Noncurrent derivative liabilities
|
- | 92 | - | 59 | ||||||||||||
Foreign currency swaps:
|
||||||||||||||||
Current derivative assets
|
- | - | 24 | - | ||||||||||||
Current derivative liabilities
|
- | 4 | - | 4 | ||||||||||||
Noncurrent derivative assets
|
7 | - | 11 | - | ||||||||||||
Total
|
$ | 59 | $ | 161 | $ | 142 | $ | 127 |
Three Months Ended June 30,
|
|||||||||||||||||||||||||
2011
|
2010
|
||||||||||||||||||||||||
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swaps
|
Total
|
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swap
|
Total
|
||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
-
|
$
|
(119
|
)
|
$
|
10
|
$
|
(109
|
)
|
$
|
-
|
$
|
(72
|
)
|
$
|
8
|
$
|
(64
|
)
|
|||||
Gains (losses) reclassified from AOCI to net income
|
$
|
14
|
(a)
|
$
|
(24
|
)(b)
|
$
|
7
|
(c)
|
$
|
(3
|
)
|
$
|
32
|
(a)
|
$
|
(9
|
)(b)
|
$
|
8
|
(c)
|
$
|
31
|
(a)
|
Included in operating revenues.
|
(b)
|
Included in interest expense.
|
(c)
|
Loss of approximately $1 million is included in interest expense and the balance is included in other - net.
|
Six Months Ended June 30,
|
|||||||||||||||||||||||||
2011
|
2010
|
||||||||||||||||||||||||
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swaps
|
Total
|
Commodity
Contracts
|
Interest
Rate
Swaps
|
Foreign
Currency
Swap
|
Total
|
||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||
Gains (losses) recognized in OCI
|
$
|
-
|
$
|
(118
|
)
|
$
|
(6
|
)
|
$
|
(124
|
)
|
$
|
19
|
$
|
(106
|
)
|
$
|
4
|
$
|
(83
|
)
|
||||
Gains (losses) reclassified from AOCI to net income
|
$
|
19
|
(a)
|
$
|
(43
|
)(b)
|
$
|
(4
|
)(c)
|
$
|
(28
|
)
|
$
|
68
|
(a)
|
$
|
(26
|
)(b)
|
$
|
6
|
(d)
|
$
|
48
|
||
Gains (losses) recognized in income(e)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1
|
(a)
|
$
|
-
|
$
|
-
|
$
|
1
|
(a)
|
Included in operating revenues.
|
(b)
|
Included in interest expense.
|
(c)
|
Loss of approximately $3 million is included in interest expense and the balance is included in other - net.
|
(d)
|
Loss of approximately $1 million is included in interest expense and the balance is included in other - net.
|
(e)
|
Represents the ineffective portion of the hedging instrument.
|
June 30, 2011
|
December 31, 2010
|
||||||||||||||||||||||||
NextEra Energy
|
FPL
|
NextEra Energy
|
FPL
|
||||||||||||||||||||||
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
Derivative
Assets
|
Derivative
Liabilities
|
||||||||||||||||||
(millions)
|
|||||||||||||||||||||||||
Commodity contracts:
|
|||||||||||||||||||||||||
Current derivative assets
|
$
|
633
|
$
|
281
|
$
|
11
|
(a)
|
$
|
4
|
(a)
|
$
|
754
|
$
|
278
|
$
|
9
|
(a)
|
$
|
1
|
(a)
|
|||||
Current derivative liabilities
|
1,561
|
1,898
|
11
|
159
|
1,848
|
2,339
|
12
|
257
|
|||||||||||||||||
Noncurrent derivative assets
|
592
|
150
|
6
|
(b)
|
2
|
(b)
|
687
|
157
|
1
|
(b)
|
-
|
(b)
|
|||||||||||||
Noncurrent derivative liabilities
|
786
|
992
|
2
|
(c)
|
5
|
(c)
|
828
|
1,084
|
-
|
-
|
|||||||||||||||
Foreign currency swap:
|
|||||||||||||||||||||||||
Current derivative assets
|
-
|
-
|
-
|
-
|
13
|
-
|
-
|
-
|
|||||||||||||||||
Current derivative liabilities
|
-
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Noncurrent derivative liabilities
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Interest rate contracts:
|
|||||||||||||||||||||||||
Current derivative assets
|
12
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Noncurrent derivative assets
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Total
|
$
|
3,585
|
$
|
3,324
|
$
|
30
|
$
|
170
|
$
|
4,130
|
$
|
3,858
|
$
|
22
|
$
|
258
|
(a)
|
Included in current other assets on FPL's condensed consolidated balance sheets.
|
(b)
|
Included in noncurrent other assets on FPL's condensed consolidated balance sheets.
|
(c)
|
Included in noncurrent other liabilities on FPL's condensed consolidated balance sheets.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(millions)
|
||||||||||||
Commodity contracts:
|
||||||||||||
Operating revenues
|
$
|
154
|
(a)
|
$
|
(9
|
)(a)
|
$
|
2
|
(a)
|
$
|
261
|
(a)
|
Fuel, purchased power and interchange
|
23
|
27
|
(2
|
)
|
94
|
|||||||
Foreign currency swap - Other - net
|
2
|
7
|
(3
|
)
|
5
|
|||||||
Interest rate contracts - Other - net
|
4
|
-
|
4
|
-
|
||||||||
Total
|
$
|
183
|
$
|
25
|
$
|
1
|
$
|
360
|
(a)
|
In addition, for both the three and six months ended June 30, 2011, FPL recorded approximately $68 million of losses related to commodity contracts as regulatory assets on its condensed consolidated balance sheets. For the three and six months ended June 30, 2010, FPL recorded approximately $63 million of gains and $392 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.
|
Commodity Type
|
NextEra Energy
|
FPL
|
|||||
(millions)
|
|||||||
Power
|
(101
|
)
|
mwh(a)
|
-
|
|||
Natural gas
|
1,176
|
mmbtu(b)
|
844
|
mmbtu(b)
|
|||
Oil
|
(1
|
)
|
barrels
|
1
|
barrels
|
(a)
|
Megawatt-hours
|
(b)
|
One million British thermal units
|
June 30, 2011
|
||||||||||||||||
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Netting(a)
|
Total
|
||||||||||||
(millions)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Cash equivalents:
|
||||||||||||||||
NextEra Energy - equity securities
|
$
|
-
|
$
|
76
|
$
|
-
|
$
|
-
|
$
|
76
|
||||||
Special use funds:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Equity securities
|
$
|
769
|
$
|
1,276
|
(b)
|
$
|
-
|
$
|
-
|
$
|
2,045
|
|||||
U.S. Government and municipal bonds
|
$
|
517
|
$
|
106
|
$
|
-
|
$
|
-
|
$
|
623
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
463
|
$
|
-
|
$
|
-
|
$
|
463
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
529
|
$
|
-
|
$
|
-
|
$
|
529
|
||||||
Other debt securities
|
$
|
-
|
$
|
121
|
$
|
-
|
$
|
-
|
$
|
121
|
||||||
FPL:
|
||||||||||||||||
Equity securities
|
$
|
135
|
$
|
1,118
|
(b)
|
$
|
-
|
$
|
-
|
$
|
1,253
|
|||||
U.S. Government and municipal bonds
|
$
|
462
|
$
|
95
|
$
|
-
|
$
|
-
|
$
|
557
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
327
|
$
|
-
|
$
|
-
|
$
|
327
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
441
|
$
|
-
|
$
|
-
|
$
|
441
|
||||||
Other debt securities
|
$
|
-
|
$
|
44
|
$
|
-
|
$
|
-
|
$
|
44
|
||||||
Other investments:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Equity securities
|
$
|
3
|
$
|
2
|
$
|
-
|
$
|
-
|
$
|
5
|
||||||
U.S. Government and municipal bonds
|
$
|
13
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
13
|
||||||
Corporate debt securities
|
$
|
-
|
$
|
52
|
$
|
-
|
$
|
-
|
$
|
52
|
||||||
Mortgage-backed securities
|
$
|
-
|
$
|
36
|
$
|
-
|
$
|
-
|
$
|
36
|
||||||
Other
|
$
|
5
|
$
|
18
|
$
|
-
|
$
|
-
|
$
|
23
|
||||||
Derivatives:
|
||||||||||||||||
NextEra Energy:
|
||||||||||||||||
Commodity contracts
|
$
|
1,432
|
$
|
1,433
|
$
|
707
|
$
|
(2,849
|
)
|
$
|
723
|
(c)
|
||||
Interest rate swaps
|
$
|
-
|
$
|
65
|
$
|
-
|