01—Abstract
Summary
Summary of the 10-K filed February 26, 2010. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- FPL experienced a slowdown in customer growth and usage due to economic conditions in Florida, with retail customer growth declining by 0.2% in 2009.
- The 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.
- In 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.
- NextEra Energy Resources, the competitive segment, continued to grow its wind generation portfolio, adding approximately 1,170 MW in 2009 and planning further additions.
- The company faces ongoing regulatory and environmental risks, including potential impacts from climate change legislation and regulations regarding greenhouse gas emissions.
- FPL 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 26, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $15.64B$16.41B | −4.7% |
| Operating Expenses | $13.05B$13.59B | −3.9% |
| Operating Income | $2.59B$2.83B | −8.2% |
| Net Income | $1.61B$1.64B | −1.5% |
| EPS (Basic) | $1.00$1.02 | −2.7% |
| EPS (Diluted) | $0.99$1.02 | −2.5% |
| Shares Outstanding (Basic) | 1.62B1.60B | +1.1% |
| Shares Outstanding (Diluted) | 1.63B1.61B | +1.1% |
05—Questions
Frequently Asked Questions
What was the impact of the FPSC's January 2010 rate ruling on FPL?
The FPSC's January 2010 rate ruling resulted in a much smaller annual base rate increase ($75 million) and a lower authorized ROE (10.0%) for FPL than the company had requested. This led FPL to suspend or reevaluate approximately $10 billion in capital projects.
How is NextEra Energy Resources' competitive business performing?
NextEra Energy Resources is expanding its portfolio, primarily through wind generation, adding approximately 1,170 MW in 2009. Its performance is influenced by competitive wholesale markets, commodity prices, and the success of its ongoing development and acquisition strategy.
What are the key risks facing NextEra Energy Inc. (NEE) as detailed in this filing?
Key risks include changes in laws and regulations impacting utility operations, environmental regulations and climate change initiatives (especially greenhouse gas emissions), operational risks associated with power generation facilities (including nuclear), capital market conditions impacting access to funding, and the economic conditions affecting customer growth and energy usage, particularly in FPL's Florida service territory.
How is FPL Group managing its capital expenditures and financial obligations?
FPL Group's capital expenditure plans are subject to ongoing review and adjustments, particularly in light of regulatory decisions and economic conditions. The company accesses both internally generated funds and capital markets to meet its financial obligations, aiming to maintain a strong investment-grade credit rating. The report indicates significant liquidity available through revolving credit facilities.
06—Continue