First Quarter 2015 Release

NextEra Energy, Inc. and NextEra Energy Partners, LP first quarter 2015 release
April 29, 2015
Q1 2015 ReleaseQ1 2015 Presentation Q1 2015 RemarksFirst Quarter 2015 Financial Statements
Webcast Presentation      
  • NextEra Energy delivered strong operational performance and financial results
  • NextEra Energy Resources benefited from growth in contracted renewables and strong results in customer supply business
  • Florida Power & Light Company continued solid execution on capital initiatives

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2015 first-quarter net income attributable to NextEra Energy on a GAAP basis of $650 million, or $1.45 per share, compared to $430 million, or $0.98 per share, in the first quarter of 2014. On an adjusted basis, NextEra Energy’s earnings were $631 million, or $1.41 per share, compared to $557 million, or $1.26 per share, in the first 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 and the 2014 gain associated with the Maine fossil assets. 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 very strong operational performance and financial results during the first quarter of 2015, highlighted by 12 percent adjusted earnings per share growth over the comparable prior-year quarter,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “NextEra Energy Resources delivered excellent adjusted earnings growth and had an excellent quarter in terms of new contracted renewables origination, adding approximately 500 megawatts (MW) to its backlog. We continue to be well positioned to add further projects in the coming months. FPL performed well operationally and continued its excellent track record of executing on capital projects and investing in the business to deliver on its customer value proposition. We are pleased that FPL recently once again was ranked as having the best reliability among Florida’s major electric companies.”

Florida Power & Light Company
NextEra Energy’s principal rate-regulated electric utility subsidiary, Florida Power & Light Company, reported first-quarter 2015 net income of $359 million, or $0.80 per share, compared to $347 million, or $0.79 per share, for the prior-year quarter.

FPL’s contribution to adjusted earnings per share growth over the prior-year comparable quarter was driven by continued investments in its infrastructure, which strengthens the company’s value proposition that combines low electric bills, high reliability, award-winning customer service and a clean emissions profile. FPL’s capital expenditures were approximately $765 million in the quarter.

FPL averaged approximately 66,000 more customer accounts during the first quarter of 2015 than in the comparable prior-year quarter. Customer growth increased sales by approximately 1.4 percent over the prior-year comparable quarter. Overall usage per customer decreased 0.4 percent.

FPL’s customer metrics are consistent with improving Florida economic indicators that the company tracks. Florida’s March unemployment rate of 5.7 percent is the lowest level since mid-2008, and the number of jobs in Florida grew by approximately 284,000 positions, or 3.7 percent, compared to the same period in 2014. Over the long term, the company continues to expect that Florida will experience above-average economic growth.

During the first quarter, FPL continued to make progress on its Port Everglades Clean Energy Center, which is the third in a series of highly efficient, combined-cycle natural gas generation modernization projects. Expected to come online in mid-2016, the new plant remains on schedule and on budget. Since 2001, FPL’s investments in clean, fuel-efficient power plants have saved customers more than $7.5 billion in fuel costs, helped reduce the company’s use of foreign oil by 99 percent and have significantly reduced power plant emissions rates. FPL now operates one of the most modern, clean, fuel-efficient and low-carbon generation fleets in the nation.

In April, the Florida Public Service Commission (PSC) approved FPL’s request to further reduce its customer electric rates -- the second such reduction this year -- because of lower fuel costs. Beginning May 1, FPL’s typical residential customer’s electric bill will be reduced by approximately $3 per month and will be approximately 30 percent lower than the latest national average. FPL’s typical residential electric bill has been the lowest in Florida for more than five years running.

During the quarter, FPL also continued its multi-year investment program in its transmission and distribution network, which is designed to improve resiliency during severe weather and provide increased reliability to customers on a daily basis. Since the 2005 storm season, FPL has invested more than $2 billion to strengthen its electric grid against severe weather by inspecting more than 1.2 million power poles and reinforcing or replacing the poles and wires that serve critical facilities in its communities. FPL also has installed 4.8 million smart meters and thousands of intelligent devices throughout its system to help reduce the number of outages and restore service faster when outages do occur. In March, FPL once again was ranked as the most reliable of Florida’s major electric companies, based on 2014 performance data submitted to the Florida PSC. In 2014, P.A. Consulting also recognized FPL for delivering the most reliable service of any utility in the U.S. Southeast and for making the best use of technology among all utilities in the nation.

In March, FPL filed a petition with the Florida PSC to request approval to acquire the Cedar Bay Generating Plant located in Jacksonville, Fla. FPL has purchased power from the 250-megawatt coal-fired facility under a long-term contract since 1988. If approved, upon taking ownership, FPL expects to be able to reduce the plant’s operations by 90 percent and potentially enable earlier shutdown of the facility than would otherwise be the case. This plan is projected to save FPL customers an estimated $70 million and prevent nearly one million tons of carbon dioxide emissions annually. FPL expects a PSC decision on this petition in September.

Also during the quarter, FPL closed on its Woodford Shale natural gas production project in southeastern Oklahoma. FPL expects this investment will save money for customers over the long term and help to reduce variability in the fuel portion of customers’ bills. The investment represents a first, small step in what FPL believes could become a larger program that would further improve the value it delivers to its customers. FPL also anticipates a decision in the coming months on its request that the Florida PSC approve a set of guidelines for potential additional natural gas production projects that would allow the company and, in turn, its customers to take advantage of future beneficial natural gas investment opportunities.

NextEra Energy Resources

NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a first-quarter 2015 contribution to net income attributable to NextEra Energy on a GAAP basis of $278 million, or $0.62 per share, compared to $86 million, or $0.20 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources’ earnings for the first quarter of 2015 were $260 million, or $0.58 per share, compared to $211 million, or $0.48 per share, for the first quarter of 2014.

NextEra Energy Resources’ contribution to adjusted earnings per share in the first quarter of 2015 increased $0.10 year-over-year, or approximately 21 percent, primarily as a result of a return to more normal levels of profitability for its customer supply and trading business and new investments in its contracted renewables business. Growth in the contracted renewables portfolio added $0.09 per share, reflecting new wind and solar investments placed into service during or after the first quarter of 2014. The customer supply and trading business added $0.20 per share year-over-year as it returned to more normal levels of profitability, and the gas infrastructure business increased earnings by $0.02 per share year-over-year. Existing assets decreased earnings by $0.17 per share, primarily because of below-average wind resource in the first quarter of 2015. All other factors reduced results by $0.04 per share.

NextEra Energy Resources had a good quarter of originating new renewables. Within the first few months of 2015, NextEra Energy Resources added 200 MW of new wind and approximately 300 MW of new solar projects to its backlog.

Corporate and Other
In the first quarter of 2015, Corporate and Other adjusted earnings increased by $0.04 per share, compared to the prior-year quarter, primarily due to miscellaneous corporate items.

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 decisions are expected for both projects around year-end 2015, with construction of the proposed interstate pipeline system beginning in 2016 and operations commencing in mid-2017.

The company’s Mountain Valley Pipeline joint venture with EQT Corporation added two additional partners during the first quarter, WGL Midstream and Vega Midstream MVP LLC. WGL Midstream also will be a shipper and gas purchaser on the proposed 300-mile Mountain Valley Pipeline, which is designed to connect the Marcellus and Utica natural gas supply to markets in the U.S. Southeast to support growing demand and to improve reliability.

Outlook
NextEra Energy continues to expect full-year 2015 adjusted earnings per share to be in the range of $5.40 to $5.70 and 2016 full-year adjusted earnings per share to be in the range of $5.75 to $6.25.

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 first-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 is 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 atwww.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 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.

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. 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 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; 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; 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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