8-KRegulation FD

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Feb 8, 2011)

Filed February 8, 2011For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

This 8-K filing from NextEra Energy (NEE) on February 8, 2011, primarily serves to reaffirm the company's previously stated growth targets. NextEra Energy anticipates an average adjusted earnings per share (EPS) growth of approximately 5% to 7% annually through 2014, stemming from a 2009 base. This projection translates to an adjusted EPS of $5.17 to $5.68 for the year 2014. The company emphasizes that these are forward-looking expectations and are subject to various risks and cautionary statements detailed within the filing. The majority of the 8-K content is dedicated to outlining the extensive risk factors that could impact NextEra Energy's and its subsidiary Florida Power & Light Company's (FPL) future financial performance. These risks span a wide range, including extensive government and regulatory oversight, potential disallowances of cost recovery by regulators, federal compliance costs and penalties, environmental regulations, nuclear generation risks, project development and construction delays, operational and maintenance risks, competitive energy market challenges, dependence on government incentives for renewables, credit and performance risks from customers and suppliers, slower customer growth, weather-related impacts, credit and capital market volatility, and potential impacts on credit ratings.

Key Highlights

  • 1Reaffirmed adjusted EPS growth target of 5%-7% annually through 2014, projecting $5.17-$5.68 EPS for 2014.
  • 2Detailed extensive risk factors that could materially affect future financial results.
  • 3Highlighted significant regulatory oversight and potential for cost recovery disallowances by the Florida Public Service Commission (FPSC).
  • 4Acknowledged risks associated with nuclear generation facilities, including operational, environmental, and regulatory compliance.
  • 5Outlined potential impacts of environmental regulations and greenhouse gas emission limits on operations.
  • 6Detailed risks related to project development, construction delays, and cost overruns.

Frequently Asked Questions

NextEra Energy reaffirmed its expectation of average adjusted earnings per share (EPS) growth of approximately 5% to 7% per year through 2014, based on a 2009 base. This translates to an adjusted EPS projection of $5.17 to $5.68 for 2014.

The filing outlines a broad range of risks, including extensive regulatory and governmental oversight, environmental compliance, nuclear generation operations, project development and construction, operational risks, competitive market dynamics, credit and counterparty risks, economic and market volatility, and weather-related impacts.

Both NextEra Energy and its subsidiary FPL are subject to extensive federal, state, and local regulations that govern various aspects of their operations, including rates, asset management, and facility construction. Significant changes in regulation or unsuccessful navigation of the regulatory process could adversely affect their financial results and operations. FPL, in particular, is subject to the Florida Public Service Commission (FPSC), which can disallow cost recovery if deemed imprudent.

The competitive energy business faces risks such as increased competition, excess generation capacity, shifting demand, volatile market prices for energy commodities, potential failure to hedge effectively, reliance on short-term contracts leading to volatility, and dependence on third-party transmission and transportation infrastructure.