How much is FPL requesting as a base rate increase and when?

FPL expects to request two base rate increases: approximately $525 million effective January 2013, and an additional $170 million annually starting in June 2013 when its modernized Cape Canaveral plant becomes operational.

What is FPL's proposed return on equity (ROE) and what incentive is offered?

FPL is proposing an allowed regulatory return on common equity (ROE) midpoint of 11.25 percent. They are also seeking a potential 0.25 percent adder to this ROE if they can maintain the lowest typical residential customer bills among all electric utilities in Florida.

When can investors expect the formal rate request from FPL?

FPL anticipates filing its formal request to initiate the base rate proceeding before the end of the first quarter of 2012.

NEXTERA ENERGY INC 8-K SEC Disclosure

Q: What is the primary purpose of this 8-K filing for NextEra Energy (NEE)?

The primary purpose of this filing is to inform investors that NEE's subsidiary, Florida Power & Light Company (FPL), has officially notified the Florida Public Service Commission (FPSC) of its intention to seek a base rate increase. This signals a significant regulatory event that could impact FPL's future revenues.

Summary

This 8-K filing reports that NextEra Energy's (NEE) wholly-owned subsidiary, Florida Power & Light Company (FPL), has formally notified the Florida Public Service Commission (FPSC) of its intent to initiate a base rate proceeding. FPL is expected to request a total base rate increase of approximately $695 million, phased in over two stages. The first request, estimated at $525 million, is targeted for January 2013, with an additional $170 million annually beginning in June 2013 upon the operational readiness of the modernized Cape Canaveral plant. Key to this rate increase request is FPL's proposed allowed regulatory return on common equity (ROE) midpoint of 11.25 percent, with a potential 0.25 percent adder if FPL maintains the lowest residential customer bills in Florida. Investors should note that FPL expects to file its formal rate request before the end of the first quarter of 2012, and the company includes a cautionary note regarding the forward-looking nature of these statements and the inherent uncertainties and risks involved in regulatory proceedings and future operations.

Key Highlights

1Florida Power & Light Company (FPL), a subsidiary of NextEra Energy (NEE), filed a formal notification with the Florida Public Service Commission (FPSC) of its intent to initiate a base rate proceeding.
2FPL expects to request a base rate increase of approximately $525 million effective January 2013.
3An additional annual base rate increase of approximately $170 million is expected to commence in June 2013, coinciding with the operational status of the modernized Cape Canaveral plant.
4The proposed allowed regulatory return on common equity (ROE) midpoint is 11.25 percent.
5FPL may seek an additional 0.25 percent ROE adder if it maintains the lowest typical residential customer bill among Florida electric utilities.
6The formal rate request filing is anticipated before the end of the first quarter of 2012.
7The filing includes a cautionary note about forward-looking statements and inherent risks in regulatory proceedings and future operations.

NEXTERA ENERGY INC 8-K Report, Corporate Update (Jan 17, 2012)

Summary

Key Highlights

Frequently Asked Questions