Summary
This 10-K filing from NextEra Energy Inc. (NEE) for the period ending December 30, 2009, details the company's operations primarily through its two main subsidiaries: FPL, a regulated utility in Florida, and NextEra Energy Resources, its competitive energy subsidiary focused on renewable fuels. FPL's business is significantly impacted by regulatory decisions, as evidenced by the FPSC's January 2010 rate ruling, which granted a much smaller base rate increase than requested and set a lower authorized Return on Equity (ROE). This ruling led FPL to suspend or reevaluate significant capital projects totaling approximately $10 billion over five years. The company is also navigating a slowdown in customer growth and usage in Florida, attributed to the economic downturn. NextEra Energy Resources continues to expand its renewable energy portfolio, particularly in wind power, and is subject to the evolving competitive energy markets and environmental regulations. Both segments face ongoing regulatory scrutiny and market risks, including commodity price volatility and environmental compliance costs.
Financial Highlights
45 data points| Revenue | $15.64B |
| Operating Expenses | $13.05B |
| Operating Income | $2.59B |
| Net Income | $1.61B |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 1.62B |
| Shares Outstanding (Diluted) | 1.63B |
Key Highlights
- 1FPL experienced a slowdown in customer growth and usage due to economic conditions in Florida, with retail customer growth declining by 0.2% in 2009.
- 2The Florida Public Service Commission (FPSC) issued a rate ruling in January 2010 that approved a significantly lower base rate increase ($75 million annually) and a lower regulatory ROE (10.0%) compared to FPL's request.
- 3In response to the FPSC's ruling and other factors, FPL suspended or reevaluated approximately $10 billion in capital projects over the next five years, including nuclear unit development and power plant modernization.
- 4NextEra Energy Resources, the competitive segment, continued to grow its wind generation portfolio, adding approximately 1,170 MW in 2009 and planning further additions.
- 5The company faces ongoing regulatory and environmental risks, including potential impacts from climate change legislation and regulations regarding greenhouse gas emissions.
- 6FPL Group's overall net income was $1.615 billion in 2009, a slight decrease from $1.639 billion in 2008, with FPL contributing $831 million and NextEra Energy Resources contributing $849 million.