What are FPL Group's (NEE's) earnings expectations for 2009 and 2010?

FPL Group (now NextEra Energy) reaffirmed its previously announced adjusted earnings per share expectations of $4.05 to $4.25 for 2009 and $4.50 to $4.90 for 2010.

What are some of the major risks mentioned in the filing that could affect NextEra Energy's future results?

The filing details numerous risks, including complex and changing laws and regulations (environmental, rate setting), operational risks with generation and transmission facilities (equipment failure, weather), nuclear power risks, construction delays and cost overruns, risks associated with derivative contracts, competitive market pressures, potential difficulties in acquisitions, uncertain economic conditions, fluctuations in customer growth and usage, weather impacts, adverse capital and credit market conditions, and potential credit rating downgrades.

Does the guidance include all potential impacts on earnings?

No, the adjusted earnings per share expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and other than temporary impairment losses on securities held in NextEra Energy Resources' nuclear decommissioning funds, none of which can be determined at this time.

NEXTERA ENERGY INC 8-K: Regulation FD

Q: What are the key assumptions underlying FPL Group's growth expectations?

The company's growth expectations assume normal weather and operating conditions, no further decline in the national or Florida economy, access to reasonable capital and credit markets, supportive commodity markets, continued public policy support for renewable power, continued wind supply chain expansion, continued expansion of non-wind activities, no acquisitions, and a continued constructive regulatory framework in Florida.

Summary

This 8-K filing from NextEra Energy, Inc. (NEE), then operating as FPL Group, Inc., provides forward-looking guidance and highlights significant risk factors. The company reaffirmed its adjusted earnings per share (EPS) expectations for 2009 and 2010, targeting $4.05-$4.25 and $4.50-$4.90 respectively. It also reiterated its commitment to achieving an average annual adjusted EPS growth of at least 10% from 2006 to 2012. These projections are contingent upon various assumptions, including normal weather and economic conditions, access to capital markets, supportive commodity markets, continued public policy support for renewables, and a constructive regulatory framework in Florida. The filing extensively details a wide range of risks that could materially impact the company's actual results. These include regulatory and environmental challenges, operational risks associated with power generation and transmission facilities, nuclear power risks, construction and capital improvement risks, derivative contract risks, competitive market pressures, acquisition risks, economic uncertainties, customer growth and usage fluctuations, weather impacts, and capital/credit market conditions.

Key Highlights

1Reaffirmed 2009 adjusted EPS guidance of $4.05-$4.25.
2Reaffirmed 2010 adjusted EPS guidance of $4.50-$4.90.
3Reiterated target of at least 10% average annual adjusted EPS growth from 2006-2012.
4Guidance is contingent on assumptions like normal weather, stable economy, and access to capital.
5Extensive discussion of numerous risk factors that could impact future results, including regulatory, operational, environmental, and market risks.
6Emphasis on regulatory framework in Florida and public policy support for renewable energy as key drivers.
7Acknowledgement of potential impacts from capital and credit market conditions.

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Mar 17, 2009)

Summary

Key Highlights

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