8-KRegulation FDOther EventsExhibits & Filings

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Jul 7, 2005)

Filed July 7, 2005For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy Inc. (NEE), through its subsidiary FPL Energy, LLC, announced a significant strategic acquisition on July 5, 2005. FPL Energy has entered into an agreement to purchase a 70% stake in the Duane Arnold Energy Center, a 598-megawatt nuclear power plant located in Iowa, from Alliant Energy Corporation's subsidiary, Interstate Power and Light Company (IP&L). This acquisition is expected to bolster NEE's renewable and clean energy portfolio and enhance its generating capacity. The transaction, valued at approximately $387 million, includes nuclear fuel and inventory. FPL Energy will assume operational management and future decommissioning responsibilities, with $188 million in decommissioning funds to be transferred at closing. The power generated from FPL Energy's share will be sold back to IP&L under a long-term contract with escalating prices. The deal is subject to regulatory approvals and is anticipated to close in late Q4 2005 or early Q1 2006.

Key Highlights

  • 1FPL Energy (a subsidiary of NEE) to acquire a 70% interest in the Duane Arnold Energy Center, a 598 MW nuclear power plant.
  • 2The acquisition is from Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation.
  • 3Transaction value is approximately $387 million, inclusive of nuclear fuel and inventory.
  • 4FPL Energy will assume operational management and ultimate decommissioning of its share of the plant.
  • 5Approximately $188 million in decommissioning funds will be transferred to FPL Energy at closing.
  • 6Power generated from FPL Energy's stake will be sold to IP&L under a long-term contract with escalating pricing.
  • 7The deal is subject to regulatory approvals and expected to close by Q1 2006.

Frequently Asked Questions

This acquisition significantly expands NextEra Energy's generating capacity, particularly in nuclear power, a key component of its clean energy strategy. It diversifies the company's energy portfolio and adds a substantial baseload power asset.

The total purchase price is approximately $387 million. FPL Energy will also receive $188 million in decommissioning funds at closing. The company will enter into a long-term power purchase agreement with IP&L, ensuring a revenue stream for its share of the generated power.

The transaction is contingent upon receiving necessary approvals from various federal and state regulatory agencies. The anticipated closing period is late in the fourth quarter of 2005 or early in the first quarter of 2006.

FPL Energy will take over the management and operation of its 70% share of the Duane Arnold Energy Center. Furthermore, the company will be responsible for the ultimate decommissioning of the facility, for which it will receive funds at closing.