EX-99 2 exhibit99-q32017.htm EXHIBIT 99 Exhibit


Exhibit 99
nexteraenergya51.jpg
 
 
NextEra Energy, Inc.
Media Line: 561-694-4442
Oct. 26, 2017

FOR IMMEDIATE RELEASE
NextEra Energy reports third-quarter 2017 financial results
NextEra Energy delivers solid third-quarter financial and operational results
Florida Power & Light Company's continued investments in the business to further advance its customer value proposition result in approximately 9.8 percent growth in regulatory capital employed
NextEra Energy Resources adds 760 megawatts to its contracted renewables backlog and 514 megawatts to its repowering backlog

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported third-quarter 2017 net income attributable to NextEra Energy on a GAAP basis of $847 million, or $1.79 per share, compared to $753 million, or $1.62 per share, in the third quarter of 2016. On an adjusted basis, NextEra Energy's third-quarter 2017 earnings were $875 million, or $1.85 per share, compared to $809 million, or $1.74 per share, in the third quarter of 2016.

Adjusted earnings for these periods exclude the effects of non-qualifying hedges, the net effect of other than temporary impairments (OTTI) on certain investments, operating results from the Spain solar projects and merger-related expenses.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, analysis of performance, 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's management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. A reconciliation of historical adjusted earnings to net income attributable to NextEra Energy, which is the most directly comparable GAAP measure, is included in the attachments to this news release.

"NextEra Energy delivered solid third-quarter results and remains well-positioned to achieve our overall objectives for 2017," said Jim Robo, chairman and chief executive officer of NextEra Energy. "NextEra Energy's third-quarter adjusted earnings per share increased more than 6 percent, driven primarily by new investments at both FPL and NextEra Energy Resources. FPL continues to advance its strategy of making long-term investments in energy infrastructure, while keeping electric bills low, maintaining high reliability and delivering superior customer service. Consistent with this strategy, FPL continues to make progress on its capital projects for the year and executed very well on behalf of customers while responding to Hurricane Irma – the largest hurricane event in our company's history. I am extremely proud that our team

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completed the fastest storm restoration of the largest number of customers by any one utility in U.S. history, which we believe was enabled by the approximately $3 billion we have invested over the last 11 years to create a smarter, stronger and more storm-resilient energy grid. NextEra Energy Resources remains equally well-positioned to capitalize on what we view as one of the best environments for renewables development in our history. The team continued to build on its success of recent quarters with another excellent period of new project origination, signing 760 megawatts of additional long-term contracted projects and adding an additional 514 megawatts to our repowering backlog. Overall, we are positioned to continue delivering outstanding value for our shareholders, and I remain confident that we will be able to achieve our financial expectations at or near the top of the 6 to 8 percent adjusted earnings per share growth range through 2020."

Florida Power & Light Company
NextEra Energy's principal rate-regulated electric utility subsidiary, Florida Power & Light Company (FPL), reported third-quarter 2017 net income of $566 million, or $1.19 per share, compared to $515 million, or $1.11 per share, for the prior-year quarter.

FPL's contribution to adjusted earnings per share growth over the prior-year comparable quarter was primarily driven by continued investment in the business to further advance its long-term focus on delivering outstanding customer value, best-in-class reliability and typical residential customer bills that are significantly lower than the national and Florida averages. For the third quarter of 2017, FPL's average number of customers increased by approximately 62,000, or 1.3 percent, from the prior-year comparable period.
FPL completed service restoration to more than 4.4 million customers – more than 90 percent of the company’s customers – affected by Hurricane Irma. In preparation for the powerful storm, FPL assembled and pre-positioned the largest restoration workforce in U.S. history, which grew to approximately 28,000 at its peak, including support from partner utilities from 30 states and Canada. This preparation and coordinated response, combined with the significant investments in the grid, enabled FPL to restore service to more than 2 million customers – nearly half of all affected customers – by the end of the first full day of restoration. Approximately 95 percent of impacted customers were restored within one week and the full restoration was completed 10 days after Hurricane Irma left FPL's service territory.
FPL continues to execute on its major capital initiatives, including leading one of the largest solar expansions ever in the eastern U.S. Construction of eight 74.5-megawatt (MW) solar energy centers across FPL's service territory remains on track and on budget. The eight solar energy centers, anticipated to come online later this year and in early 2018, will produce nearly 600 MW of combined solar capacity – enough to power approximately 120,000 homes. Furthermore, FPL has secured potential sites that could support more than 5 gigawatts of solar expansion and is developing an additional 1,600 MW of new solar generating capacity planned for beyond 2018. All of the solar energy centers are expected to be built cost-effectively, which would result in millions of dollars in net lifetime savings for FPL customers.
In addition, construction on the state-of-the-art, natural gas-fueled FPL Okeechobee Clean Energy Center remains on schedule and under budget. The approximately 1,750-MW project, expected to begin operation in mid-2019, will be one of the cleanest, most efficient plants of its kind in the world. Earlier this month, FPL filed a determination of need with the Florida Public Service Commission (PSC) for the planned modernization of the existing Lauderdale Plant in Dania Beach. The new, approximately 1,200-MW FPL Dania Beach Clean Energy Center will be highly efficient and fueled by clean-burning natural gas. The facility is expected to begin operation by mid-2022 and produce more than $335 million in projected net savings for FPL customers over its operational life.

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Last month, the PSC approved the settlement agreement with the Office of Public Counsel regarding FPL's proposal for the early shutdown of the St. Johns River Power Park, an approximately 1,300-MW coal-fired plant jointly owned with JEA. The early retirement of the plant, which is expected in January 2018, is projected to provide total savings to FPL customers of $183 million and prevent nearly 5.6 million tons of carbon dioxide emissions annually, adding to the customer savings and emission reductions of the early retirements of the Cedar Bay Generating Plant and the Indiantown Cogeneration Plant.
NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a third-quarter 2017 contribution to net income attributable to NextEra Energy on a GAAP basis of $292 million, or $0.62 per share, compared to $307 million, or $0.66 per share, in the prior-year comparable quarter. On an adjusted basis, NextEra Energy Resources' earnings for the third-quarter of 2017 were $292 million, or $0.62 per share, compared to $279 million, or $0.60 per share, for the third quarter of 2016.
 
NextEra Energy Resources' contribution to third-quarter 2017 adjusted earnings per share increased $0.02, compared to the prior-year quarter. The business' results were primarily driven by contributions from new investments, reflecting continued growth in the contracted renewables portfolio. Partially offsetting the positive results were higher interest expense and a decline in contributions from existing generation assets due to low wind resource.
During the third quarter, the NextEra Energy Resources team continued to execute on its backlog and pursue additional opportunities for contracted renewables development. Over the past few months, the team added 760 MW of additional renewables projects to its backlog, including approximately 566 MW of new wind projects for 2018 delivery, approximately 164 MW of new solar projects for delivery between 2018 and 2020 and a 30-MW battery storage project that will be paired with one of the solar power purchase agreements. This project is the largest combined solar and storage facility in the U.S. announced to date. Also during the quarter, NextEra Energy Resources added 514 MW to its repowering backlog, commissioned an additional 308 MW of wind repowering projects and closed its first tax equity financing for a wind repowering portfolio.

Progress continues on the Mountain Valley Pipeline project, with the issuance of a Certificate of Public Convenience and Necessity by the Federal Energy Regulatory Commission earlier this month. Final development activities are underway on the 303-mile underground pipeline, and the Mountain Valley Pipeline joint venture expects to begin advancing construction efforts to support a December 2018 commercial operation date.

Corporate and Other
On a GAAP basis, Corporate and Other earnings increased $0.13 per share in the third quarter of 2017, compared to the prior-year comparable period. On an adjusted basis, Corporate and Other earnings increased $0.01 per share in the third quarter of 2017, compared to the prior-year comparable period.

Earlier this month, NextEra Energy Transmission New York was selected by the New York Independent System Operator (NYISO) to develop a 20-mile, 345-kV transmission line and accompanying facilities located near Buffalo, New York. The project is NYISO’s first competitive transmission award under its Public Policy Transmission Planning Process and will help allow the state to maximize the flow of energy from lower-cost renewable generation. The project is required to be in service by June 2022.

Outlook

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NextEra Energy continues to expect adjusted earnings per share to be in the range of $6.35 to $6.85 for 2017. For 2018, the company expects adjusted earnings per share to be in the range of $6.80 to $7.30 and in the range of $7.85 to $8.45 for 2020, implying a compound annual growth rate off a 2016 base of 6 to 8 percent.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the 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 projects, merger-related expenses, net gains associated with NextEra Energy Partners, LP's deconsolidation beginning in 2018 and the gain on the sale of the fiber-optic telecommunications business in 2017. 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; market demand for pipeline capacity; access to capital at reasonable cost and terms; no divestitures other than to NextEra Energy Partners or acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.
 
As previously announced, NextEra Energy's third-quarter 2017 conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be third-quarter 2017 financial results for NextEra Energy Partners, LP (NYSE: NEP). The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/investors. The news release and slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors, beginning at 7:30 a.m. ET today. A replay will be available for 90 days by accessing the same link as listed above.
 
 
 
 
 

This news release should be read in conjunction with the attached unaudited financial information.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $16.2 billion, approximately 45,900 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), and approximately 14,700 employees in 30 states and Canada as of year-end 2016. Headquartered in Juno Beach, Florida, NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 5 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. A Fortune 200 company and included in the S&P 100 index, 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 No. 1 in the electric and gas utilities industry in Fortune's 2017 list of "World's Most Admired Companies." For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

###

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Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance, and statements concerning future dividends. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “may result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “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 or modifications to, or elimination of, governmental incentives or policies that support utility scale renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional tax laws, policies or assessments on renewable energy; impact of new or revised laws, regulations, interpretations or other regulatory initiatives on 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 and businesses; effect on NextEra Energy and FPL of changes in tax laws, guidance or policies as well as 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; 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; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; NextEra Energy Partners, LP’s (NEP's) acquisitions may not be completed and, even if completed, NextEra Energy may not realize the anticipated benefits of any acquisitions; environmental, health and financial risks associated with NextEra Energy Resources’ and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance

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premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or result in reduced revenues 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; 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 credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; NEP’s inability to access sources of capital on commercially reasonable terms could have an effect on its ability to consummate future acquisitions and on the value of NextEra Energy’s limited partner interest in NextEra Energy Operating Partners, LP; and effects of disruptions, uncertainty or volatility in the credit and capital markets on 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, 2016 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Three Months Ended September 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
3,477

 
$
1,333

 
$
(2
)
 
$
4,808

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
1,036

 
172

 
(32
)
 
1,176

Other operations and maintenance
 
362

 
399

 
8

 
769

Merger
 

 

 
2

 
2

Depreciation and amortization
 
704

 
359

 
7

 
1,070

Losses (gains) on disposal of a business/assets - net
 
(1
)
 
(4
)
 

 
(5
)
Taxes other than income taxes and other - net
 
354

 
38

 
5

 
397

Total operating expenses (income) - net
 
2,455

 
964

 
(10
)
 
3,409

Operating Income (Loss)
 
1,022

 
369

 
8

 
1,399

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(121
)
 
(193
)
 
(67
)
 
(381
)
Benefits associated with differential membership interests - net
 

 
67

 

 
67

Equity in earnings of equity method investees
 

 
54

 
2

 
56

Allowance for equity funds used during construction
 
20

 

 
1

 
21

Interest income
 
1

 
18

 
1

 
20

Gains on disposal of investments and other property - net
 

 
14

 
1

 
15

Other - net
 

 
16

 
7

 
23

Total other income (deductions) - net
 
(100
)
 
(24
)
 
(55
)
 
(179
)
Income (Loss) before Income Taxes
 
922

 
345

 
(47
)
 
1,220

Income Tax Expense (Benefit)
 
356

 
44

 
(36
)
 
364

Net Income (Loss)
 
566

 
301

 
(11
)
 
856

Less Net Income Attributable to Noncontrolling Interests
 

 
9

 

 
9

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
566

 
$
292

 
$
(11
)
 
$
847

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
566

 
$
292

 
$
(11
)
 
$
847

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
17

 
45

 
62

Loss (income) from other than temporary impairments - net(4)
 

 
(9
)
 

 
(9
)
Operating loss (income) of Spain solar projects(5)
 

 
(8
)
 

 
(8
)
Merger-related expenses(6)
 

 

 
3

 
3

Less related income tax expense (benefit)
 

 

 
(20
)
 
(20
)
Adjusted Earnings
 
$
566

 
$
292

 
$
17

 
$
875

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
1.19

 
$
0.62

 
$
(0.02
)
 
$
1.79

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
0.04

 
0.09

 
0.13

Loss (income) from other than temporary impairments - net(4)
 

 
(0.02
)
 

 
(0.02
)
Operating loss (income) of Spain solar projects(5)
 

 
(0.02
)
 

 
(0.02
)
Merger-related expenses(6)
 

 

 
0.01

 
0.01

Less related income tax expense (benefit)
 

 

 
(0.04
)
 
(0.04
)
Adjusted Earnings Per Share
 
$
1.19

 
$
0.62

 
$
0.04

 
$
1.85

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
474

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, $13, $26, $39, or $0.00, $0.03, $0.05, $0.08 per share, respectively.
(4) After tax impact on adjusted earnings is ($5) or ($0.01) per share.
(5) After tax impact on adjusted earnings is ($8) or ($0.02) per share.
(6) After tax impact on adjusted earnings is $2 or $0.01 per share.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Three Months Ended September 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
3,283

 
$
1,430

 
$
92

 
$
4,805

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
1,045

 
161

 
11

 
1,217

Other operations and maintenance
 
403

 
395

 
35

 
833

Merger
 

 

 
123

 
123

Depreciation and amortization
 
587

 
380

 
16

 
983

Losses (gains) on disposal of a business/assets - net
 
(1
)
 
(3
)
 

 
(4
)
Taxes other than income taxes and other - net
 
328

 
41

 
5

 
374

Total operating expenses (income) - net
 
2,362

 
974

 
190

 
3,526

Operating Income (Loss)
 
921

 
456

 
(98
)
 
1,279

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(114
)
 
(220
)
 
(35
)
 
(369
)
Benefits associated with differential membership interests - net
 

 
59

 

 
59

Equity in earnings of equity method investees
 

 
61

 
9

 
70

Allowance for equity funds used during construction
 
17

 
3

 

 
20

Interest income
 

 
6

 
17

 
23

Gains on disposal of investments and other property - net
 

 
9

 

 
9

Revaluation of contingent consideration
 

 
101

 

 
101

Other - net
 

 
3

 
12

 
15

Total other income (deductions) - net
 
(97
)
 
22

 
3

 
(72
)
Income (Loss) before Income Taxes
 
824

 
478

 
(95
)
 
1,207

Income Tax Expense (Benefit)
 
309

 
135

 
(26
)
 
418

Net Income (Loss)
 
515

 
343

 
(69
)
 
789

Less Net Income Attributable to Noncontrolling Interests
 

 
36

 

 
36

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
515

 
$
307

 
$
(69
)
 
$
753

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
515

 
$
307

 
$
(69
)
 
$
753

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(79
)
 
(1
)
 
(80
)
Operating loss (income) of Spain solar projects(4)
 

 
1

 

 
1

Merger-related expenses(5)
 

 

 
123

 
123

Less related income tax expense (benefit)
 

 
50

 
(38
)
 
12

Adjusted Earnings
 
$
515

 
$
279

 
$
15

 
$
809

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
1.11

 
$
0.66

 
$
(0.15
)
 
$
1.62

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(0.17
)
 

 
(0.17
)
Operating loss (income) of Spain solar projects(4)
 

 

 

 

Merger-related expenses(5)
 

 

 
0.26

 
0.26

Less related income tax expense (benefit)
 

 
0.11

 
(0.08
)
 
0.03

Adjusted Earnings Per Share
 
$
1.11

 
$
0.60

 
$
0.03

 
$
1.74

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
466

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, ($28), $1, ($27), or $0.00, ($0.06), $0.00, ($0.06) per share, respectively.
(4) After tax impact on adjusted earnings is $0 or $0.00 per share.
(5) After tax impact on adjusted earnings is $83 or $0.18 per share.

8


NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Nine Months Ended September 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
9,095

 
$
4,052

 
$
38

 
$
13,185

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
2,696

 
458

 
(61
)
 
3,093

Other operations and maintenance
 
1,137

 
1,232

 
31

 
2,400

Merger
 

 

 
17

 
17

Depreciation and amortization
 
1,514

 
1,044

 
18

 
2,576

Losses (gains) on disposal of a business/assets - net
 
(4
)
 
(8
)
 
(1,094
)
 
(1,106
)
Taxes other than income taxes and other - net
 
979

 
126


10

 
1,115

Total operating expenses (income) - net
 
6,322

 
2,852

 
(1,079
)
 
8,095

Operating Income (Loss)
 
2,773

 
1,200

 
1,117

 
5,090

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(360
)
 
(613
)
 
(198
)
 
(1,171
)
Benefits associated with differential membership interests - net
 

 
311

 

 
311

Equity in earnings of equity method investees
 

 
147

 
6

 
153

Allowance for equity funds used during construction
 
55

 
12

 
1

 
68

Interest income
 
1

 
53

 
5

 
59

Gains on disposal of investments and other property - net
 

 
47

 
17

 
64

Other - net
 
1

 
27

 
(21
)
 
7

Total other income (deductions) - net
 
(303
)
 
(16
)
 
(190
)
 
(509
)
Income (Loss) before Income Taxes
 
2,470

 
1,184

 
927

 
4,581

Income Tax Expense (Benefit)
 
933

 
86

 
310

 
1,329

Net Income (Loss)
 
1,537

 
1,098

 
617

 
3,252

Less Net Income Attributable to Noncontrolling Interests
 

 
29

 

 
29

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,537

 
$
1,069

 
$
617

 
$
3,223

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,537

 
$
1,069

 
$
617

 
$
3,223

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(90
)
 
130

 
40

Loss (income) from other than temporary impairments - net(4)
 

 
(7
)
 

 
(7
)
Gains on disposal of a business/assets(5)
 

 

 
(1,096
)
 
(1,096
)
Operating loss (income) of Spain solar projects(6)
 

 
(6
)
 

 
(6
)
Merger-related expenses(7)
 

 

 
41

 
41

Less related income tax expense (benefit)
 

 
34

 
346

 
380

Adjusted Earnings
 
$
1,537

 
$
1,000

 
$
38

 
$
2,575

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
3.26

 
$
2.26

 
$
1.31

 
$
6.83

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(0.19
)
 
0.28

 
0.09

Loss (income) from other than temporary impairments - net(4)
 

 
(0.01
)
 

 
(0.01
)
Gains on disposal of a business/assets(5)
 

 

 
(2.32
)
 
(2.32
)
Operating loss (income) of Spain solar projects(6)
 

 
(0.01
)
 

 
(0.01
)
Merger-related expenses(7)
 

 

 
0.09

 
0.09

Less related income tax expense (benefit)
 

 
0.06

 
0.73

 
0.79

Adjusted Earnings Per Share
 
$
3.26

 
$
2.11

 
$
0.09

 
$
5.46

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
472

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, ($57), $78, $21, or $0.00, ($0.12), $0.17, $0.05 per share, respectively.
(4) After tax impact on adjusted earnings is ($4) or ($0.01) per share.
(5) After tax impact on adjusted earnings is ($685) or ($1.45) per share.
(6) After tax impact on adjusted earnings is ($8) or ($0.02) per share.
(7) After tax impact on adjusted earnings is $28 or $0.06 per share.

9


NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Nine Months Ended September 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
8,337

 
$
3,841

 
$
279

 
$
12,457

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
2,556

 
517

 
32

 
3,105

Other operations and maintenance
 
1,203

 
1,177

 
94

 
2,474

Merger
 

 

 
129

 
129

Depreciation and amortization
 
1,207

 
1,006

 
49

 
2,262

Losses (gains) on disposal of a business/assets - net
 
(4
)
 
(256
)
 
3

 
(257
)
Taxes other than income taxes and other - net
 
912

 
131

 
19

 
1,062

Total operating expenses (income) - net
 
5,874

 
2,575

 
326

 
8,775

Operating Income (Loss)
 
2,463

 
1,266

 
(47
)
 
3,682

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(342
)
 
(866
)
 
(272
)
 
(1,480
)
Benefits associated with differential membership interests - net
 

 
220

 

 
220

Equity in earnings of equity method investees
 

 
117

 
30

 
147

Allowance for equity funds used during construction
 
55

 
6

 
1

 
62

Interest income
 
3

 
16

 
42

 
61

Gains on disposal of investments and other property - net
 

 
36

 

 
36

Revaluation of contingent consideration
 

 
118

 

 
118

Other - net
 

 
5

 
16

 
21

Total other income (deductions) - net
 
(284
)
 
(348
)
 
(183
)
 
(815
)
Income (Loss) before Income Taxes
 
2,179

 
918

 
(230
)
 
2,867

Income Tax Expense (Benefit)
 
823

 
111

 
(55
)
 
879

Net Income (Loss)
 
1,356

 
807

 
(175
)
 
1,988

Less Net Income Attributable to Noncontrolling Interests
 

 
42

 

 
42

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,356

 
$
765

 
$
(175
)
 
$
1,946

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,356

 
$
765

 
$
(175
)
 
$
1,946

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
415

 
163

 
578

Loss (income) from other than temporary impairments - net(4)
 

 
10

 

 
10

Resolution of contingencies related to a previous asset sale(5)
 

 
(9
)
 

 
(9
)
Gains on disposal of a business/assets(6)
 

 
(254
)
 

 
(254
)
Operating loss (income) of Spain solar projects(7)
 

 
5

 

 
5

Merger-related expenses(8)
 

 

 
129

 
129

Less related income tax expense (benefit)
 

 
(32
)
 
(53
)
 
(85
)
Adjusted Earnings
 
$
1,356

 
$
900

 
$
64

 
$
2,320

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
2.92

 
$
1.65

 
$
(0.38
)
 
$
4.19

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
0.89

 
0.35

 
1.24

Loss (income) from other than temporary impairments - net(4)
 

 
0.02

 

 
0.02

Resolution of contingencies related to a previous asset sale(5)
 

 
(0.02
)
 

 
(0.02
)
Gains on disposal of a business/assets(6)
 

 
(0.55
)
 

 
(0.55
)
Operating loss (income) of Spain solar projects(7)
 

 
0.01

 

 
0.01

Merger-related expenses(8)
 

 

 
0.28

 
0.28

Less related income tax expense (benefit)
 

 
(0.06
)
 
(0.11
)
 
(0.17
)
Adjusted Earnings Per Share
 
$
2.92

 
$
1.94

 
$
0.14

 
$
5.00

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
465

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, $295, $94, $389, or $0.00, $0.63, $0.20, $0.83 per share, respectively.
(4) After tax impact on adjusted earnings by segment is $0, $5, ($1), $4, or $0.00, $0.01, $0.00, $0.01 per share, respectively.
(5) After tax impact on adjusted earnings is ($5) or ($0.01) per share.
(6) After tax impact on adjusted earnings by segment is $0, ($164), $58, ($106), or $0.00, ($0.35), $0.13, ($0.22) per share, respectively.
(7) After tax impact on adjusted earnings is $4 or $0.01 per share.
(8) After tax impact on adjusted earnings is $88 or $0.19 per share.

10


NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
September 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
46,394

 
$
36,669

 
$
982

 
$
84,045

Nuclear fuel
 
1,260

 
751

 

 
2,011

Construction work in progress
 
3,341

 
3,108

 
43

 
6,492

Accumulated depreciation and amortization
 
(12,730
)
 
(8,617
)
 
(113
)
 
(21,460
)
Total property, plant and equipment - net
 
38,265

 
31,911

 
912

 
71,088

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
8

 
685

 
688

 
1,381

Customer receivables, net of allowances
 
1,212

 
915

 
20

 
2,147

Other receivables
 
225

 
725

 
(347
)
 
603

Materials, supplies and fossil fuel inventory
 
903

 
449

 

 
1,352

Regulatory assets
 
551

 

 

 
551

Derivatives
 
7

 
428

 
7

 
442

Other
 
176

 
379

 
(4
)
 
551

Total current assets
 
3,082

 
3,581

 
364

 
7,027

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
3,963

 
1,931

 

 
5,894

Other investments
 
4

 
2,668

 
311

 
2,983

Prepaid benefit costs
 
1,332

 

 
(115
)
 
1,217

Regulatory assets
 
2,971

 
17

 
302

 
3,290

Derivatives
 

 
1,499

 
47

 
1,546

Other
 
298

 
3,384

 
54

 
3,736

Total other assets
 
8,568

 
9,499

 
599

 
18,666

Total Assets
 
$
49,915

 
$
44,991

 
$
1,875

 
$
96,781

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
8,291

 
9,856

 
(9,101
)
 
9,046

Retained earnings
 
7,682

 
10,350

 
(733
)
 
17,299

Accumulated other comprehensive income (loss)
 

 
138

 
(90
)
 
48

Total common shareholders' equity
 
17,346

 
20,344

 
(11,292
)
 
26,398

Noncontrolling interests
 

 
923

 

 
923

Total equity
 
17,346

 
21,267

 
(11,292
)
 
27,321

Long-term debt
 
10,055

 
9,545

 
10,745

 
30,345

Total capitalization
 
27,401

 
30,812

 
(547
)
 
57,666

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
1,079

 

 
995

 
2,074

Other short-term debt
 
250

 
5

 

 
255

Current maturities of long-term debt
 
463

 
570

 
1,252

 
2,285

Accounts payable
 
764

 
1,531

 
(39
)
 
2,256

Customer deposits
 
446

 
3

 

 
449

Accrued interest and taxes
 
637

 
280

 
(44
)
 
873

Derivatives
 
3

 
232

 
22

 
257

Accrued construction-related expenditures
 
218

 
698

 
5

 
921

Regulatory liabilities
 
145

 

 
12

 
157

Other
 
1,573

 
401

 
103

 
2,077

Total current liabilities
 
5,578

 
3,720

 
2,306

 
11,604

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
2,001

 
881

 

 
2,882

Deferred income taxes
 
9,554

 
3,245

 
(236
)
 
12,563

Regulatory liabilities
 
4,855

 

 
40

 
4,895

Derivatives
 

 
471

 
43

 
514

Deferral related to differential membership interests
 

 
4,542

 

 
4,542

Other
 
526

 
1,320

 
269

 
2,115

Total other liabilities and deferred credits
 
16,936

 
10,459

 
116

 
27,511

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
49,915

 
$
44,991

 
$
1,875

 
$
96,781

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

11


NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
December 31, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
44,966

 
$
34,158

 
$
1,026

 
$
80,150

Nuclear fuel
 
1,308

 
823

 

 
2,131

Construction work in progress
 
2,039

 
2,663

 
30

 
4,732

Accumulated depreciation and amortization
 
(12,304
)
 
(7,655
)
 
(142
)
 
(20,101
)
Total property, plant and equipment - net
 
36,009

 
29,989

 
914

 
66,912

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
33

 
603

 
656

 
1,292

Customer receivables, net of allowances
 
768

 
986

 
30

 
1,784

Other receivables
 
148

 
572

 
(65
)
 
655

Materials, supplies and fossil fuel inventory
 
851

 
438

 

 
1,289

Regulatory assets
 
524

 

 

 
524

Derivatives
 
209

 
505

 
171

 
885

Assets held for sale
 

 

 
452

 
452

Other
 
213

 
312

 
3

 
528

Total current assets
 
2,746

 
3,416

 
1,247

 
7,409

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
3,665

 
1,769

 

 
5,434

Other investments
 
4

 
2,158

 
320

 
2,482

Prepaid benefit costs
 
1,301

 

 
(124
)
 
1,177

Regulatory assets
 
1,573

 
9

 
312

 
1,894

Derivatives
 

 
1,287

 
63

 
1,350

Other
 
203

 
3,115

 
17

 
3,335

Total other assets
 
6,746

 
8,338

 
588

 
15,672

Total Assets
 
$
45,501

 
$
41,743

 
$
2,749

 
$
89,993

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
8,332

 
7,725

 
(7,109
)
 
8,948

Retained earnings
 
6,875

 
9,281

 
(698
)
 
15,458

Accumulated other comprehensive income (loss)
 

 
27

 
(97
)
 
(70
)
Total common shareholders' equity
 
16,580

 
17,033

 
(9,272
)
 
24,341

Noncontrolling interests
 

 
990

 

 
990

Total equity
 
16,580

 
18,023

 
(9,272
)
 
25,331

Long-term debt
 
9,705

 
8,631

 
9,482

 
27,818

Total capitalization
 
26,285

 
26,654

 
210

 
53,149

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
268

 

 

 
268

Other short-term debt
 
150

 

 

 
150

Current maturities of long-term debt
 
367

 
513

 
1,724

 
2,604

Accounts payable
 
837

 
2,645

 
(35
)
 
3,447

Customer deposits
 
466

 
4

 

 
470

Accrued interest and taxes
 
240

 
309

 
(69
)
 
480

Derivatives
 
1

 
329

 
74

 
404

Accrued construction-related expenditures
 
262

 
855

 
3

 
1,120

Regulatory liabilities
 
294

 

 
5

 
299

Liabilities associated with assets held for sale
 

 

 
451

 
451

Other
 
496

 
615

 
115

 
1,226

Total current liabilities
 
3,381

 
5,270

 
2,268

 
10,919

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
1,919

 
817

 

 
2,736

Deferred income taxes
 
8,541

 
2,685

 
(125
)
 
11,101

Regulatory liabilities
 
4,893

 

 
13

 
4,906

Derivatives
 

 
436

 
41

 
477

Deferral related to differential membership interests
 

 
4,656

 

 
4,656

Other
 
482

 
1,225

 
342

 
2,049

Total other liabilities and deferred credits
 
15,835

 
9,819

 
271

 
25,925

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
45,501

 
$
41,743

 
$
2,749

 
$
89,993

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

12



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Nine Months Ended September 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income
 
$
1,537

 
$
1,098

 
$
617

 
$
3,252

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
1,514

 
1,044

 
18

 
2,576

Nuclear fuel and other amortization
 
153

 
44

 
13

 
210

Unrealized losses (gains) on marked to market derivative contracts - net
 

 
(161
)
 
206

 
45

Foreign currency transaction gains
 

 
(10
)
 
(13
)
 
(23
)
Deferred income taxes
 
987

 
444

 
(115
)
 
1,316

Cost recovery clauses and franchise fees
 
61

 

 

 
61

Acquisition of purchased power agreement
 
(258
)
 

 

 
(258
)
Benefits associated with differential membership interests - net
 

 
(311
)
 

 
(311
)
Gains on disposal of a business/assets - net
 
(4
)
 
(55
)
 
(1,111
)
 
(1,170
)
Recoverable storm-related costs
 
(334
)
 

 

 
(334
)
Other - net
 
(59
)
 
54

 
111

 
106

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(578
)
 
40

 
(6
)
 
(544
)
Noncurrent assets
 
(45
)
 
(24
)
 
(8
)
 
(77
)
Current liabilities
 
507

 
(548
)
 
340

 
299

Noncurrent liabilities
 
(13
)
 
43

 
(18
)
 
12

Net cash provided by operating activities
 
3,468

 
1,658

 
34

 
5,160

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(3,676
)
 

 

 
(3,676
)
Independent power and other investments of NEER
 

 
(4,678
)
 

 
(4,678
)
Nuclear fuel purchases
 
(104
)
 
(71
)
 

 
(175
)
Other capital expenditures and other investments
 

 

 
(58
)
 
(58
)
Proceeds from sale of the fiber-optic telecommunications business
 

 

 
1,482

 
1,482

Sale of independent power and other investments of NEER
 

 
159

 

 
159

Proceeds from sale or maturity of securities in special use funds and other investments
 
1,241

 
636

 
182

 
2,059

Purchases of securities in special use funds and other investments
 
(1,320
)
 
(631
)
 
(195
)
 
(2,146
)
Other - net
 
29

 
162

 
7

 
198

Net cash provided by (used in) investing activities
 
(3,830
)
 
(4,423
)
 
1,418

 
(6,835
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 
200

 
2,431

 
2,565

 
5,196

Retirements of long-term debt
 
(73
)
 
(1,618
)
 
(2,201
)
 
(3,892
)
Proceeds from differential membership investors
 

 
340

 

 
340

Net change in commercial paper
 
811

 

 
995

 
1,806

Proceeds from other short-term debt
 
200

 

 

 
200

Repayments of other short-term debt
 
(2
)
 

 

 
(2
)
Issuances of common stock - net
 

 

 
36

 
36

Dividends on common stock
 

 

 
(1,382
)
 
(1,382
)
Dividends & capital distributions from (to) parent - net
 
(800
)
 
2,131

 
(1,331
)
 

Other - net
 
1

 
(437
)
 
(102
)
 
(538
)
Net cash provided by (used in) financing activities
 
337

 
2,847

 
(1,420
)
 
1,764

Net increase (decrease) in cash and cash equivalents
 
(25
)
 
82

 
32

 
89

Cash and cash equivalents at beginning of period
 
33

 
603

 
656

 
1,292

Cash and cash equivalents at end of period
 
$
8

 
$
685

 
$
688

 
$
1,381

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

13



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Nine Months Ended September 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other(1)(2)
 
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income
 
$
1,356

 
$
807

 
$
(175
)
 
$
1,988

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
1,207

 
1,006

 
49

 
2,262

Nuclear fuel and other amortization
 
167

 
94

 
14

 
275

Unrealized losses on marked to market derivative contracts - net
 

 
306

 
63

 
369

Foreign currency transaction losses (gains)
 

 
(3
)
 
102

 
99

Deferred income taxes
 
569

 
217

 
(20
)
 
766

Cost recovery clauses and franchise fees
 
111

 

 

 
111

Benefits associated with differential membership interests - net
 

 
(220
)
 

 
(220
)
Gains on disposal of a business/assets - net
 

 
(292
)
 
1

 
(291
)
Recoverable storm-related costs
 
(17
)
 

 

 
(17
)
Other - net
 
(15
)
 
(174
)
 
28

 
(161
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(185
)
 
(27
)
 
8

 
(204
)
Noncurrent assets
 
12

 
(10
)
 
(19
)
 
(17
)
Current liabilities
 
679

 
(109
)
 
(208
)
 
362

Noncurrent liabilities
 
(94
)
 
30

 
36

 
(28
)
Net cash provided by (used in) operating activities
 
3,790

 
1,625

 
(121
)
 
5,294

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(2,976
)
 

 

 
(2,976
)
Independent power and other investments of NEER
 

 
(4,610
)
 

 
(4,610
)
Nuclear fuel purchases
 
(121
)
 
(73
)
 

 
(194
)
Other capital expenditures and other investments
 

 

 
(149
)
 
(149
)
Sale of independent power and other investments of NEER
 

 
395

 

 
395

Proceeds from sale or maturity of securities in special use funds and other investments
 
1,775

 
609

 
251

 
2,635

Purchases of securities in special use funds and other investments
 
(1,836
)
 
(636
)
 
(239
)
 
(2,711
)
Proceeds from sales of noncontrolling interests in NEP
 

 
645

 

 
645

Other - net
 
32

 
(55
)
 
5

 
(18
)
Net cash used in investing activities
 
(3,126
)
 
(3,725
)
 
(132
)
 
(6,983
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 
150

 
1,793

 
2,701

 
4,644

Retirements of long-term debt
 
(262
)
 
(1,112
)
 
(1,280
)
 
(2,654
)
Proceeds from differential membership investors
 

 
328

 

 
328

Net change in commercial paper
 
408

 

 
(154
)
 
254

Proceeds from other short-term debt
 
500

 

 

 
500

Repayments of other short-term debt
 
(150
)
 
(12
)
 
(200
)
 
(362
)
Issuances of common stock - net
 

 

 
528

 
528

Dividends on common stock
 

 

 
(1,205
)
 
(1,205
)
Dividends & capital distributions from (to) parent - net
 
(1,300
)
 
1,342

 
(42
)
 

Other - net
 
13

 
(169
)
 
(78
)
 
(234
)
Net cash provided by (used in) financing activities
 
(641
)
 
2,170

 
270

 
1,799

Net increase in cash and cash equivalents
 
23

 
70

 
17

 
110

Cash and cash equivalents at beginning of period
 
23

 
490

 
58

 
571

Cash and cash equivalents at end of period
 
$
46

 
$
560

 
$
75

 
$
681

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.


14



NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
Preliminary
 
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Year-To-Date
2016 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
1.41


$
1.16

 
$
1.62

 
$
4.19

 
 
 
 
 
 
 
 
 
Florida Power & Light - 2016 Earnings Per Share
 
$
0.85

 
$
0.96

 
$
1.11

 
$
2.92

New investment growth
 
0.11

 
0.07

 
0.08

 
0.25

Cost recovery clause results
 

 
0.01

 
0.01

 
0.02

Allowance for funds used during construction
 
(0.02
)
 
0.01

 
0.01

 

Woodford shale investment
 

 
0.03

 

 
0.03

Wholesale operations
 

 
0.02

 

 
0.01

Other and share dilution
 
0.01

 
0.02

 
(0.02
)
 
0.03

Florida Power & Light - 2017 Earnings Per Share
 
$
0.95

 
$
1.12

 
$
1.19

 
$
3.26

 
 
 
 
 
 
 
 
 
NEER - 2016 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
0.48

 
$
0.50

 
$
0.66

 
$
1.65

New investments
 
0.35

 
0.17

 
0.12

 
0.66

Existing assets
 
(0.01
)
 
(0.08
)
 
(0.03
)
 
(0.14
)
Gas infrastructure
 
(0.11
)
 
(0.04
)
 
(0.01
)
 
(0.16
)
Customer supply and proprietary power & gas trading
 
(0.04
)
 
0.05

 

 
0.01

Non-qualifying hedges impact
 
0.44

 
0.40

 
(0.09
)
 
0.75

Resolution of contingencies related to a previous asset sale
 
(0.01
)
 

 

 
(0.01
)
Gain on disposal of assets - net (see related tax effects in Corporate and Other below)
 

 
(0.35
)
 

 
(0.35
)
Spain operating results
 
(0.01
)
 
0.02

 
0.02

 
0.03

Change in other than temporary impairment losses - net
 
0.01

 

 
0.01

 
0.02

Interest and corporate general and administrative expenses
 
(0.09
)
 
(0.09
)
 
(0.10
)
 
(0.28
)
Other, including income taxes and share dilution
 

 
0.06

 
0.04

 
0.08

NEER - 2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
1.01

 
$
0.64

 
$
0.62

 
$
2.26

 
 


 
 
 
 
 
 
Corporate and Other - 2016 Earnings Per Share
 
$
0.08


$
(0.30
)
 
$
(0.15
)
 
$
(0.38
)
Non-qualifying hedges impact
 
(0.05
)
 
0.14

 
(0.05
)
 
0.03

Gain on disposal of a business/assets - net (including consolidating tax effects)
 
1.46

 
0.13

 

 
1.58

Merger-related expenses
 
(0.04
)
 
(0.01
)
 
0.17

 
0.13

Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution
 
(0.04
)
 
(0.04
)
 
0.01

 
(0.05
)
Corporate and Other - 2017 Earnings (Loss) Per Share
 
$
1.41

 
$
(0.08
)
 
$
(0.02
)
 
$
1.31

 
 
 
 
 
 
 
 
 
2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
3.37

 
$
1.68

 
$
1.79

 
$
6.83

________________________
Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
The sum of the quarterly amounts may not equal the year-to-date total due to rounding.

15



NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)

 
 
Preliminary
 
September 30, 2017
 
Per Books
 
Adjusted (1)
Long-term debt, including current maturities, and short-term debt
 
 
 
 
Junior Subordinated Debentures
 
$
4,215

 
$
2,108

Debentures, related to NextEra Energy's equity units
 
2,200

 
 
Project Debt:
 
 
 
 
Natural gas-fired assets
 
24

 
 
Wind assets
 
4,001

 
1,485

Solar
 
3,208

 
993

Other
 
1,511

 
688

Storm Securitization Debt
 
144

 
 
Other(2)
 
 
 
738

Other long-term debt, including current maturities, and short-term debt(3)
 
20,021

 
20,017

Unamortized debt issuance costs
 
(365
)
 
 
Total debt per Balance Sheet
 
34,959

 
26,029

Junior Subordinated Debentures
 
 
 
2,108

Debentures, related to NextEra Energy's equity units
 
 
 
2,200

Total Equity
 
27,321

 
27,321

Total capitalization, including debt due within one year
 
$
62,280

 
$
57,658

Debt ratio
 
56
%
 
45
%

December 31, 2016
 
Per Books
 
Adjusted (1)
Long-term debt, including current maturities, and short-term debt
 
 
 
 
Junior Subordinated Debentures
 
$
3,460

 
$
1,730

Debentures, related to NextEra Energy's equity units
 
2,200

 
 
Project Debt:
 
 
 
 
Natural gas-fired assets
 
36

 
 
Wind assets
 
4,228

 
1,542

Solar
 
2,975

 
1,040

Other
 
1,520

 
690

Storm Securitization Debt
 
210

 
 
Other(2)
 
 
 
519

Other long-term debt, including current maturities, and short-term debt(3)
 
16,556

 
16,556

Unamortized debt issuance costs
 
(345
)
 
 
Total debt per Balance Sheet
 
30,840

 
22,077

Junior Subordinated Debentures
 
 
 
1,730

Debentures, related to NextEra Energy's equity units
 
 
 
2,200

Total Equity
 
25,331

 
25,331

Total capitalization, including debt due within one year
 
$
56,171

 
$
51,338

Debt ratio
 
55
%
 
43
%
________________________
(1) 
Adjusted debt calculation is based on NextEra Energy's interpretation of S&P's credit metric methodology which can be found in their Corporate Ratings Criteria on S&P's website.
(2) 
Other includes imputed debt of purchase power agreements, a portion of the deferral related to differential membership interests and certain accrued interest offset by surplus cash.
(3) 
Includes premium and discount on all debt issuances.



16



Florida Power & Light Company
Statistics
(unaudited)

 
 
Preliminary
 
 
 
Quarter
 
Year-to-Date
Periods Ended September 30,
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Energy sales (million kWh)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
18,104

 
19,001

 
(4.7
)%
 
44,444

 
45,469

 
(2.3
)%
Commercial
 
12,953

 
13,585

 
(4.7
)%
 
35,599

 
35,939

 
(0.9
)%
Industrial
 
752

 
800

 
(6.0
)%
 
2,241

 
2,297

 
(2.4
)%
Public authorities
 
146

 
142

 
2.8
 %
 
432

 
422

 
2.4
 %
Increase (decrease) in unbilled sales
 
(182
)
 
(758
)
 
(76.0
)%
 
316

 
(44
)
 
(818.2
)%
Total retail
 
31,773

 
32,770

 
(3.0
)%
 
83,032

 
84,083

 
(1.2
)%
Electric utilities
 
1,945

 
1,964

 
(1.0
)%
 
4,997

 
5,200

 
(3.9
)%
Interchange power sales
 
299

 
330

 
(9.4
)%
 
2,024

 
2,317

 
(12.6
)%
Total
 
34,017

 
35,064

 
(3.0
)%
 
90,053

 
91,600

 
(1.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price (cents/kWh)(1)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
11.32

 
10.25

 
10.4
 %
 
11.22

 
10.24

 
9.6
 %
Commercial
 
8.82

 
7.93

 
11.2
 %
 
8.87

 
8.18

 
8.4
 %
Industrial
 
6.80

 
6.00

 
13.3
 %
 
6.74

 
6.13

 
10.0
 %
Total
 
9.97

 
9.03

 
10.4
 %
 
9.89

 
9.07

 
9.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Average customer accounts (000s)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
4,344

 
4,290

 
1.3
 %
 
4,333

 
4,278

 
1.3
 %
Commercial
 
549

 
542

 
1.3
 %
 
547

 
539

 
1.5
 %
Industrial
 
12

 
12

 
 %
 
12

 
12

 
 %
Other
 
4

 
4

 
 %
 
5

 
4

 
25.0
 %
Total
 
4,909

 
4,848

 
1.3
 %
 
4,897

 
4,833

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
 
 
 
 
 
 
 
2017
 
2016
 
% change
 
 
 
 
 
 
End of period customer accounts (000s)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
4,345

 
4,294

 
1.2
 %
 
 
 
 
 
 
Commercial
 
549

 
542

 
1.3
 %
 
 
 
 
 
 
Industrial
 
12

 
12

 
 %
 
 
 
 
 
 
Other
 
4

 
4

 
 %
 
 
 
 
 
 
Total
 
4,910

 
4,852

 
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
Normal
 
2016
 
 
 
 
 
 
Three Months Ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Cooling degree-days(2)
 
1,053

 
935

 
1,020

 
 
 
 
 
 
Heating degree-days(2)
 

 

 

 
 
 
 
 
 
Nine Months Ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Cooling degree-days(2)
 
1,928

 
1,665

 
1,775

 
 
 
 
 
 
Heating degree-days(2)
 
125

 
260

 
240

 
 
 
 
 
 
________________________
(1) 
Excludes interchange power sales, net change in unbilled revenues and deferrals under cost recovery clauses.
(2) 
Cooling degree equivalent days use a 72 degree base temperature and heating degree equivalent days use a 66 degree base temperature.

17