What is the primary purpose of the $708 million bond issuance?

The primary purpose of the bond issuance is to allow Florida Power & Light Company (FPL) to recover approximately $934 million in unrecovered storm restoration costs incurred in 2004 and 2005, along with funding a $200 million storm and property insurance reserve.

How will the FPSC's adjustments and disallowances affect NextEra Energy's earnings?

The FPSC's decision included certain adjustments and disallowances, which are expected to reduce the net income for FPL Group, Inc. and Florida Power & Light Company (FPL) by approximately $38 million in the second quarter of 2006.

When will the final order from the FPSC be issued, and what are the next steps?

The final order from the FPSC is expected to be issued on May 30, 2006. Following the issuance, there will be a 30-day appeal period, after which FPL will determine any appropriate actions.

Does this approval mean all storm costs will be immediately recovered?

No, while this approval facilitates the recovery of a significant portion of the costs through bond securitization, the unrecovered 2004 storm restoration costs will continue to be recovered through a previously approved surcharge until the securitization is fully implemented. Additionally, the FPSC's final order and potential appeals will influence the ultimate recovery process.

NEXTERA ENERGY INC 8-K SEC Disclosure

Summary

NextEra Energy Inc. (NEE), through its subsidiary Florida Power & Light Company (FPL), announced on May 19, 2006, that the Florida Public Service Commission (FPSC) approved the issuance of approximately $708 million in bonds. These bonds are intended to recover FPL's unrecovered storm restoration costs from 2004 and 2005, totaling around $934 million, along with establishing a $200 million storm and property insurance reserve. This securitization is a significant event for investors as it provides a mechanism to recoup substantial storm-related expenses.

Key Highlights

1FPSC approval for securitization of approximately $708 million in bonds to recover $934 million in unrecovered storm restoration costs.
2Establishment of a $200 million storm and property insurance reserve.
3The approved recovery covers 2004 and 2005 storm restoration expenses, including interest.
4The FPSC decision modifies the previously approved storm cost recovery methodology.
5Certain adjustments and disallowances by the FPSC are expected to reduce FPL Group's and FPL's Q2 2006 net income by approximately $38 million.
6The FPSC's final order is anticipated on May 30, 2006, and is subject to a 30-day appeal period.

NEXTERA ENERGY INC 8-K Report, Corporate Update (May 19, 2006)

Summary

Key Highlights

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