Summary
NextEra Energy Inc. (NEE), through its subsidiary FPL Group, reaffirmed its 2005 earnings per share (EPS) guidance of $2.45 to $2.55. This guidance is broken down by segment, with FPL contributing $1.93 to $2.00, FPL Energy contributing $0.65 to $0.73, and Corporate and Other being a drag of $(0.15) to $(0.18). The company noted that these expectations are based on normal weather for the remainder of the year and exclude certain accounting standard changes and mark-to-market effects. The report also detailed the impact of Hurricanes Katrina and Dennis on FPL's service territory. While service restoration was relatively quick, the damage to transmission and distribution systems is expected to exceed insurance reserves. FPL has mechanisms for cost recovery, including securitization or a surcharge, and has filed a petition with the Florida Public Service Commission (FPSC) to recover approximately $6.2 billion in 2006 through its cost recovery clause, which includes an estimated $770 million in under-recovered fuel costs for 2005.
Key Highlights
- 1NextEra Energy reaffirms 2005 EPS guidance of $2.45 to $2.55.
- 2Guidance segments provided for FPL, FPL Energy, and Corporate/Other.
- 32005 earnings guidance excludes adoption of new accounting standards and mark-to-market effects.
- 4FPL's service territory significantly impacted by Hurricane Katrina and Hurricane Dennis.
- 5Damage costs from hurricanes are expected to exceed insurance reserves.
- 6FPL is seeking to recover storm restoration costs through securitization or a surcharge.
- 7FPL requests recovery of ~$6.2 billion in 2006 via fuel and purchased power cost recovery clause, including ~$770 million in under-recovered fuel costs for 2005.