01—Abstract
Summary
Summary of the 10-K filed February 28, 2011. Cited figures are marked; the original filing is the authoritative source.
NextEra Energy, Inc. (NEE) is a major electric power company in North America, distinguishing itself as a leader in renewable energy generation, primarily wind and solar.
As of December 31, 2010, the company had a diverse generating capacity across natural gas, wind, nuclear, and fossil fuels, with a significant geographic footprint spanning 28 states and Canada. Its operations are structured around two primary subsidiaries: Florida Power & Light (FPL), a rate-regulated utility serving Florida, and NextEra Energy Resources, its competitive energy segment focused on clean and renewable energy. For the fiscal year ended December 30, 2010, NextEra Energy reported strong financial performance, with net income of $1.96 billiona and earnings per share of $4.74 (diluted).
FPL's operations benefited from customer growth and rate adjustments approved by the FPSC, while NextEra Energy Resources continued its expansion in wind and solar, supported by public policy incentives. The company's robust capital expenditure plan reflects a commitment to growth, particularly in renewable energy infrastructure and capacity enhancements across its generation fleet.
02—Key points
Key Highlights
- NextEra Energy is a leading electric power company with nearly 43,000 MW of generating capacity, diversified across natural gas (53%), wind (19%), nuclear (13%), and other sources, as of December 31, 2010.
- The company is the U.S. leader in renewable energy generation, with a significant focus on wind and solar projects.
- FPL, the largest electric utility in Florida, serves over 8.7 million people and achieved 99.98% service reliability in 2010, with a generation mix 78% from natural gas and nuclear.
- NextEra Energy Resources operates 18,866 MW of generating assets across 26 states and Canada, with 44% from wind and 35% from natural gas.
- The company demonstrated financial strength with net income of $1.96 billion and diluted EPS of $4.74 for the year ended December 30, 2010.
- A key regulatory development for FPL was the 2010 rate agreement, effective through December 31, 2012, which froze retail base rates and established a regulatory ROE of 10.0% +/- 100 basis points.
- NextEra Energy Resources has a substantial growth plan, aiming to add 3,500-5,000 MW of new wind generation and 400-600 MW of new solar generation between 2010 and 2014.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 28, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $15.32B$15.64B | −2.1% |
| Operating Expenses | $12.09B$13.05B | −7.3% |
| Operating Income | $3.23B$2.59B | +24.4% |
| Net Income | $1.96B$1.61B | +21.2% |
| EPS (Basic) | $1.19$1.00 | +19.5% |
| EPS (Diluted) | $1.19$0.99 | +19.4% |
| Shares Outstanding (Basic) | 1.64B1.62B | +1.5% |
| Shares Outstanding (Diluted) | 1.65B1.63B | +1.4% |
05—Questions
Frequently Asked Questions
What is NextEra Energy's primary business focus?
NextEra Energy is primarily engaged in the generation, transmission, distribution, and sale of electric energy. It operates through two main segments: Florida Power & Light (FPL), a regulated utility in Florida, and NextEra Energy Resources, a competitive energy subsidiary focused on clean and renewable energy generation.
How did NextEra Energy perform financially in 2010?
For the fiscal year ended December 30, 2010, NextEra Energy reported net income of $1.96 billion, or $4.74 per diluted share, indicating strong financial performance driven by both its regulated and competitive energy businesses.
What are the key drivers for NextEra Energy's growth?
NextEra Energy's growth is driven by the expansion of its renewable energy portfolio, particularly wind and solar projects, supported by favorable public policy and tax incentives. Additionally, FPL's investments in infrastructure to meet Florida's growing energy demand and enhance service reliability are key growth drivers.
What is the regulatory environment impacting FPL?
FPL operates as a rate-regulated utility and is subject to regulation by the Florida Public Service Commission (FPSC). Key regulatory developments include the 2010 rate agreement which freezes base rates through 2012 and sets a regulatory ROE of 10.0%. FPL also recovers costs through various clauses, such as fuel and capacity clauses, subject to FPSC approval.
06—Continue