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sustainability RepoRt 2011
NextEra Energy Resources' Red Mesa Wind Energy Center in Cibola County, New Mexico.
Our Sustainability Journey
Sustainability is a journey of continuous, incremental improvement always moving from good to better, and from better to best. It's a commitment to the well-being of our customers, our neighborhoods and the planet we all call home. It means delivering value - in a variety of forms - to our diverse group of stakeholders. It means investing in people who care about their work and about our customers, and who are relentless in their pursuit of excellence, no matter how long it takes or how arduous the journey.
An Environmental Standard-Bearer
At FPL, we have improved what was already one of the industry's lowest emissions profiles, and we have extended NextEra Energy Resources' lead as North America's largest provider of renewable energy from the wind and sun. We have reduced the rate of water used for power generation from 13,900 gallons per megawatt hour in 2007 to 9,900 gallons in 2010, and are working on ways to do even better. We also help to protect sea turtles, crocodiles, manatees, This quest for excellence, and in turn for Lewis Hay, III Chairman and Chief Executive Officer birds, bats, desert tortoises and other greater sustainability, is something we embrace species that maintain habitats on and around our properties. at NextEra Energy, Inc. It informs all that we do, every day. This report identifies the milestones on our journey. It is a record of our commitment and our progress, and we are proud of it. At our Florida headquarters, we earned the U.S. Green Building Council's Gold-level certification for Leadership in Energy and Environmental Design (LEED). The rigors of converting an existing five-building facility to meet the LEED Gold standard over three years underscore our commitment to environmental stewardship.
A High-Performing, Profitable Business
Over the past decade, NextEra Energy's investments of more than $38 billion to modernize our electric infrastructure across the country have proven that electricity producers can be clean and low cost at the same time. For example, by installing state-of-the-art, combined-cycle natural gas turbines at several Florida Power & Light (FPL) plants, we have cut fuel costs by $5 billion since 2001 and passed those savings on to customers. Today, a typical FPL residential customer bill is more than 20 percent below the national average.1 Our commitment to sustainability includes safe, reliable, emissions-free nuclear energy. At three nuclear sites, we are increasing electricity output through technology upgrades, adding the equivalent of a medium-sized power plant. We are also preserving the option of building new nuclear units, because a diversified fuel mix helps to protect us from commodity price fluctuations and keep our product affordable. It is important to note that all of our nuclear plants have multiple, redundant safety systems and practices that go far beyond minimum requirements. We are also upgrading our transmission and distribution infrastructure. For example, we are reducing electricitytransmission losses by siting new generation assets in Florida closer to where the most power is used, moving more electricity over shorter distances. We have reduced our transmission losses by 17 percent since 2005. These improvements in performance benefit our customers and shareholders alike. Over the last 5- and 10-year periods, NextEra Energy's total shareholder return has significantly outpaced that of our industry and the broader market.
A Responsible Employer and Good Neighbor
Our commitment to sustainability recognizes the needs of our employees and communities. For more than 20 years, our award-winning NextEra Health & Well-Being program has provided information and facilities to help employees care for themselves and their families. Our ZERO Today! program has helped us achieve a safety record that is substantially better than our industry's average. We are grateful to our generous employees for sharing their time and talents to support our communities, through "Power to Care" volunteer service week, solar power education programs at local schools, United Way campaigns to help those in need, and the Komen Race for the Cure to battle breast cancer. NextEra Energy's achievements are gaining notice. In 2011, we were named one of the top 10 companies in the world for social responsibility in Fortune magazine's "World's Most Admired Companies" survey. And we maintained the No. 1 overall ranking in our industry sector for the fifth straight year. On behalf of NextEra Energy's 15,000 employees, I hope you will agree that our commitment to excellence and to greater sustainability has never been stronger. Sincerely,
Source: Edison Electric Institute Typical Bills and Average Rates Report for Winter 2011 - published May 2011. FPL data is the average of July 2010 ($94.36) and January 2011 ($95.01) monthly bills.
Table of Contents
An Environmental Leader ............................................... 4
Achieving Lower Air Emissions and Cleaner Air .................... 6 A Four-Part Approach » 1. Developing, building and operating zero-emissions renewable energy generation No. 1 in Wind Energy Continued Growth in Wind Google Energy, LLC, Buys Wind Energy from NextEra Energy Resources No. 1 Provider of Solar Energy Genesis Solar, LLC, Reduces Water Consumption, Creates Jobs in California Dramatic Expansion in Solar A Leader in Hydropower Facilities in Maine » 2. Retiring and modernizing older, less efficient fossil generation facilities Canaveral and Riviera » 3. Developing and building modern, efficient, state-ofthe-art, clean generation natural gas plants, as well as upgrading our zero-emissions nuclear power centers to produce more energy West County Energy Center Nuclear Power » 4. Installing the best available environmental controls to dramatically lower air pollutant emissions Growth in Transmission Infrastructure ....................................11 Voluntary Efforts to Reduce Greenhouse Gases ...................11 Improving Power Plant Efficiency Making our Vehicle Fleet Cleaner Expanding EarthEra Renewable Energy Trust Helping Our Customers `Drive Electric' Status of GHG Emissions-Reduction Programs ................... 12 EPA Actions Affecting Our Industry ....................................... 13 Expanding Water Conservation .............................................. 14 Water Stewardship Opportunities Presented by Water-Related Risks Addressing Regulatory Risks to Operations Addressing Water Withdrawal and Supply Risks Preserving Groundwater in South Florida Mitigating Supply Risk Through Water Conservation Addressing Supply Risk Through Alternative Water Sources Conserving Land Resources ................................................... 17 Protecting the Barley Barber Swamp Mitigation Banking to Help Restore the Everglades Recreation Access and Wetlands Protection in New Jersey Enhancing Wildlife Protection Programs ............................... 18 A Localized Approach Protecting Threatened and Endangered Animals » » » » » » » » » » » » Promoting Sound Bird Research and Science Monitoring and Caring for Sea Turtles Enhancing Habitat for American Crocodiles Protecting Manatees Monitoring Bat Activity Understanding Breeding and Grassland Birds Safeguarding Habitat for Whooping Cranes Research Partnership Continues to Bear Fruit Fostering Loon Nesting Studying the Black-Capped Vireo Operating Fish Passages Protecting Desert Tortoises Supporting Low-Income Families and Others in Need ........ 36 FPL's ASSIST Program Home Energy Makeovers Non-Profit Energy Makeovers Educating Consumers about Efficiency Helping Customers Learn about Available Financial Assistance Energy Affordability Coalitions FPL Care To Share ® Foreclosure Counseling Helping Local Governments Provide Emergency Services Assisting Elderly Customers ................................................... 37 FPL's AWARE Program Florida Council on Aging Assisting Special Needs Customers ...................................... 37 Addressing Language and Literacy Barriers Medically Essential Service Program (MESP) Expanding FPL Services and FPL Energy Services to Be the Most Trusted Providers of Sustainable Energy-Related Solutions ........................................................ 38 Customer and Business Awards and Recognition................ 39 Engaging Interested Customers ............................................. 46 Soliciting Community Feedback Enhanced Education, Awareness and Communications...... 46 Guest Speakers Helping in the Community Using Technology to Reach Customers Webcams as a Window on Our World An Annual Report to Customers Investing in Our Employees ..................................................... 47 NextEra Health & Well-Being: A Wellness Program for Everyone .......................................... 47 Managing a Safe and Secure Workplace ............................... 48
Helping Employees Stay Safe and Healthy: ZERO Today! It's More Than a Motto
Minimizing Waste Across Our Operations ............................. 22 Underscoring It All: A Strong Environmental Commitment and Thorough Management Processes .........................................22 Holding Each Other Accountable An Integral Part of Our Management Processes Environmental Protection Expenditures Environmental Awards and Recognition ................................ 23 Two Texas Plants Recognized for Environmental Excellence Additional Environmental Metrics ........................................... 24
Safety in Collective Bargaining Agreements and Supplier Contracts Enhancing Safety Training, Awareness, Recognition and Certifications Enhancing Learning and Development Opportunities .......... 51 Valuing Talent and Performance ............................................. 51 Motivating our Workforce Developing Wind Technicians in Colorado, Texas and North Dakota Valuing Employee Engagement Enforcing Equal Employment Opportunity and Non-Discrimination Encouraging Diversity .............................................................. 53 A Core Belief in Strength through Differences
» » » » Employee Network Groups Employee Engagement Survey Diversity & Inclusion Training Community Outreach
A Commitment to Our Communities and Our Employees ................................................................... 40
Volunteering Our Time.......................................................... 42 Power to Care Week United Way Susan G. Komen Race for the Cure Dollars for Doers Supporting Education at All Levels ...................................... 43 Supporting Elementary, Middle and High Schools » A Renewed Commitment to Science, Technology, Engineering and Math (STEM) » Next Generation Solar Education Program » School Shows and Programs » Easy-to-Access Educational Resources » An Energy Education Website Just for Students » Teacher Training and Curriculum » Mentoring and College Prep » School Scholarships Promoting University Relations: Education and Workforce Development » » » » » » Nuclear Joint Apprenticeship Program Indian River State College Simulator Electric Power Technology Program Education Partnership Program Business Rotation Program Educating Future Sustainability Leaders
A Customer-Focused Business ................................. 26
Low Bills and High Reliability .................................................. 28 Most Affordable Electric Service in Florida Helping Customers Save Energy and Lower Their Bills More than 99.98 Percent Service Reliability Using Technology to Detect Potential Problems Reducing the Impact of Outages on Our Customers Investing in the Smart Grid Solid Financial Performance ................................................... 31 Outperforming Our Peers in Total Shareholder Return Solid 2010 Results Continued Growth Opportunities Maintaining Financial Strength and Discipline Positive Ripple Effects with Communities and Suppliers ............................................................................ 33 Integrity and Ethics Are Core to Who We Are ....................... 33 We Manage Risk Carefully and Thoroughly ........................... 34 A Culture of Quality and Continuous Improvement .............. 35 Six Sigma Program James L. Broadhead Award Quality & Safety Expo Innovation Is Alive and Well
Diversity Through Recruiting Practices » Professional Diversity Organizations and Events » Military Recruiting and Partnerships Enhance Recruiting Company Wide ....................................... 54 Community and Employee Awards and Recognition ........... 54
Global Reporting Initiative (GRI) Reference Table ................................................................ 55 Company Profile ................................................................ 59
Corporate Governance ............................................................ 59 Environmental and Sustainability Reporting History ............ 59
Financial Reconciliations ............................................. 61 Cautionary Statements and Risk Factors that May Affect Future Results .................................. 62 NextEra Energy 2010-11 Sustainability Highlights-At-A-Glance ................................................. 68
NextEra Energy, FPL and Scripps Collaborate on Next-Generation Clean Energy Research Matching Gifts for Education
An Environmental Leader
At NextEra Energy, environmental excellence means being a responsible steward of Earth's resources. These include the air, water and land we all enjoy. It also means being a careful conservator of life in all its forms, and the natural habitats and ecosystems that sustain it. Being good stewards of the air we breathe means producing cleaner energy. We achieve this in our business in four ways: Developing, building and operating zero-emissions renewable energy generation; Retiring and modernizing older, less efficient fossil generation facilities;
NextEra Energy Resources' twin 49.5 megawatt (MW) solar fields in Extremadura, Spain (artist's rendering above), will be able to produce power after the sun goes down. Some of the heat generated by the plant will be used during the day to heat molten salt to more than 700 degrees. That superheated salt will be stored in an insulated tank and used after dark to create the steam that will spin a turbine.
Developing and building modern, efficient, state-of-the-art, clean generation natural gas plants, as well as upgrading our zero-emissions nuclear power centers to produce more energy; and Installing the best available environmental controls to dramatically lower air pollutant emissions. NextEra Energy is the No. 1 provider of renewable energy in North America from both the wind and the sun. Our emissions rates of sulfur dioxide (SO2), nitrogen oxides (NOx) and carbon dioxide (CO2) are far below average and among the lowest in our industry. We continue to expand our production of clean and renewable energy in the United States, Canada and
An Environmental Leader
Spain, and we are investing in the transmission lines needed to carry renewable energy from the rural areas where wind and solar energy are often found to the cities and towns that will use it. In addition to our concern for air quality, we are careful stewards of water. Though many of our power plants withdraw large amounts of water, we're investigating ways to use this resource more efficiently and, where feasible, to use the lowest quality of water possible. On the other end of the spectrum, our wind and solar photovoltaic power plants use no water to generate electricity. We also take actions to preserve land. We are safeguarding
An Environmental Leader
the Barley Barber Swamp in South Florida's Martin County and we maintain a mitigation bank to help restore the Florida Everglades. Finally, we are committed to caring for wildlife and their habitats. Our efforts include protecting sea turtles, crocodiles and manatees in Florida, providing fish ladders in Maine, funding scientific research into the behavior of birds and bats throughout North America and Canada to help protect them near wind turbines, and preserving the habitat of the desert tortoise in California. We have processes in place to manage and track all of these activities.
Achieving Lower Air Emissions and Cleaner Air
At NextEra Energy, we demonstrate every day that an electric power company can be both clean and cost-effective at the same time. In 2010, we recorded our lowest air emissions rates ever. Our emissions rates also were significantly below national averages. Our emissions rate for sulfur dioxide (SO2) was 0.42 pounds per megawatt hour in 2010, or 85 percent below the U.S. electric sector average of 2.87 pounds per megawatt hour. The company's emissions rate for nitrogen oxides (NOx) was 0.30 pounds per megawatt hour in 2010, or 77 percent below the industry average of 1.30 pounds per megawatt hour. And our emissions rate for carbon dioxide (CO2) was 621 pounds per megawatt hour in 2010, or 52 percent below the industry average of 1,289 pounds per megawatt hour. Since 1990, our generation fleet has grown by 249 percent. During that same period of time, our SO2 emissions rate has declined by 90 percent; our NOx emissions rate has declined by 91 percent; and our CO2 emissions rate has declined by 34 percent.
Average SO2 Emissions Rate*
NextEra Energy vs. U.S. Electric Power Sector (lbs/MWh)
7.91 U.S. Electric Power Sector
Changes in NextEra Energy Power Generation and Air Emissions Rates Since 1990*
47.0% NextEra Energy 4.19 2.87 85.3%
CO2 Emissions Rate
SO2 Emissions Rate
NOx Emissions Rate
-34% -90% -91%
NextEra Energy Resources derives approximately 96 percent of its electricity from clean or renewable sources like the Red Mesa Wind Energy Center in Cibola County, NM, pictured here.
0.42 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 2010
Source for U.S. Electric Power Sector data: U.S. Department of Energy's Annual Energy Outlook 2011
Wind energy is a strong and growing business for the company. Through 2010, we have invested approximately $13 billion in zero-emissions wind generation. We estimate that approximately 43,000 tons of SO2, more than 24,600 tons of NOx, and more than 18 million tons of CO2 were avoided in 2010 due to our wind generation. Continued Growth in Wind Our company is the leading wind energy owner in the United States, and the fourth largest in Canada making us the continent's No. 1 wind energy provider. And we have a strong pipeline of projects that should fuel profitable growth. We believe that we will be able to add between 1,400 and 2,000 MW of wind to our year-end 2010 total before the end of 2012. No. 1 Provider of Solar Energy NextEra Energy is the country's largest generator of utility-scale solar power. The company operates the world's largest solar site, the 310-MW Solar Electric Generating Systems (SEGS), composed of seven individual solar facilities in California's Mojave Desert. We also commissioned the 5-MW Paradise solar photovoltaic project in New Jersey in 2010, and the 5-MW Hatch facility in (continued on page 8) New Mexico in 2011.
Average NOx Emissions Rate*
NextEra Energy vs. U.S. Electric Power Sector (lbs/MWh)
3.94 U.S. Electric Power Sector 47.0%
A Four-Part Approach
To achieve lower air emissions at NextEra Energy, we are pursuing a four-part strategy.
* The environmental or green attributes attributable to the electric generation from NextEra Energy, Inc.'s facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights to all renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants that contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere (collectively, "Environmental Attributes"). In disclosing the information herein, NextEra Energy, Inc., is not claiming ownership of any Environmental Attributes for any purpose, including compliance with any federal or state law or reporting to any federal or state agency, or for any other present or future federal, state, local, international, foreign or voluntary emissions trading program.
1. We are developing, building and operating zero-emissions renewable energy generation.
No. 1 in Wind Energy NextEra Energy was the largest generator of wind-powered electricity in North America in 2010 with 8,298 megawatts (MW) of capacity at 85 facilities in 17 states and three Canadian provinces. In 2010 alone, we added 754 MW of wind generation in North America. Our roughly 9,500 wind turbines are capable of producing enough emissions-free energy to power approximately 2 million homes. Our market-leading share of total U.S. wind energy capacity is approximately 20 percent.
NextEra Energy Wind Generation Capacity (Includes Canada)
NextEra Energy 1.30 76.9% 0.30
5,077 4,016 3,192 2,719 2,758 1,423 594 1,745
In megawatts, as of Dec. 31, 2010
Top Wind Owners (U.S. Market Only)
In megawatts, as of Dec. 31, 2010
8,298 7,544 6,375
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 2010
Source for U.S. Electric Power Sector data: U.S. Department of Energy's Annual Energy Outlook 2011
3,265 2,642 2,205 1,720
Google Buys Wind Energy from NextEra Energy Resources
Companies across the country are joining the fight to promote sustainable environmental solutions. For example, search company Google has a strong commitment to greening its energy supply and, via its subsidiary Google Energy, LLC, has signed two power purchase agreements (PPAs) for wind energy from NextEra Energy Resources. One PPA was signed in 2010 for 114 MW from the Story II Wind Energy Center in Iowa, and the second PPA in 2011 was for 100.8 MW from the Minco II facility under development in Oklahoma. Clean, renewable energy from the wind facilities will effectively power Google's regional data centers and will help to manage long-term energy costs. "We made the commitment to be a carbon-neutral company, and these purchases are part of our effort to minimize our
NextEra Energy vs. U.S. Electric Power Sector (lbs/MWh)
1,346.30 U.S. Electric Power Sector 1,289.00 29.9% NextEra Energy 51.8%
impact on the environment," said Gary Demasi of Google's global infrastructure team. "We can reduce emissions by increasing the amount of renewable energy we use to power our operations." Buying green also makes business sense for Google Energy. The long-term PPAs of renewable energy at a predetermined price help protect the company against future increases in power prices. "We're looking to do more agreements as long as it meets both our financial and environmental objectives," said Demasi. Through Google and other customers that support emissionsfree, renewable energy, NextEra Energy has built its wind fleet from fewer than 600 MW a decade ago to 8,298 MW at the end of 2010, which is the largest wind fleet in North America.
An Environmental Leader
U.S. Commercial-Scale Solar Generation Capacity U.S. Commercial-Scale Solar Generation Capacity
Operating megawatts, as of June 28, 2011
Operating megawatts, as of Dec. 31, 2010 430
Average CO2 Emissions Rate*
621 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 2010
Source for U.S. Electric Power Sector data: U.S. Department of Energy's Annual Energy Outlook 2011
pr gy ner r/Sem aE la xtEr irst So Ne F
r r n nc. Sola Solar I n Powe nEdiso i Su Su uw J
Source: Solar Energy Industries Association
Source: Solar Energy Industries Association.
2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
An Environmental Leader
Our rate-regulated utility in the Sunshine State, FPL now has 110 MW of solar generation in operation. In December 2010, we began generating clean, emissions-free power at our 75-MW Martin Next Generation Solar Energy Center in Martin County, Fla. This facility is the world's first hybrid solar power plant to combine a solar thermal array with a combined-cycle natural gas unit. When the solar plant is in operation, it can power about 11,000 homes and is expected to reduce fossil fuel consumption by more than 600,000 barrels of oil and approximately 41 billion cubic feet of natural gas over the facility's expected 30-year lifetime. FPL also commissioned the Space Coast Next Generation Solar Energy Center in 2010. This 10-MW solar photovoltaic facility is located at NASA's Kennedy Space Center.
Dramatic Expansion in Solar Equally impressive is the progress we're making on our solar power strategy. Two large-scale solar projects are currently under construction: the 250-MW Genesis project near the California-Arizona border and two 49.9-MW projects in Extremadura, Spain, southwest of Madrid. In 2010, the California Public Utilities Commission, the California Energy Commission and the U.S. Bureau of Land Management approved the Genesis solar thermal project. Site work began in January 2011, and we expect to complete the project's twin 125-MW units in 2013 and 2014, respectively. The project will use the same basic technology employed at SEGS and is expected to produce enough renewable electricity to power more than 80,000 homes. Regarding our Spain solar thermal project, the Spanish government in December 2010 published its revised feed-in tariff. The net effect of the changes was roughly neutral to our projects, and we are moving forward with construction. In 2010, we also acquired approximately 40 MW of solar projects under development in Ontario, Canada, with the projects expected to be online by the end of 2011. In Florida, we have identified and permitted sites where more than 500 MW of new solar power could be built if legislation is enacted allowing utilities to recover costs associated with such investments. A Leader in Hydropower Facilities in Maine NextEra Energy is also a leading producer of hydroelectric power in Maine, with 81 generating units at 23 projects totaling approximately 360 MW of emissions-free energy. Our hydroelectric operations are located in the following river basins, primarily in central and southern Maine: the Androscoggin River system; the Kennebec River system; and the Saco River and Presumpscot River systems. These facilities produce enough electricity to meet the needs of about 330,000 households.
respectively, will have an air emissions rate 90 percent lower than their predecessors. Fuel efficiencies will increase by 33 percent. In 2010, FPL committed a team of remediation experts to address potential site cleanup activities that may be required prior to new plant construction. The team conducted comprehensive site assessments of both facilities. The assessments included sampling and analysis to delineate areas requiring remediation. Areas identified for remedial actions underwent source removal activities by excavating and properly disposing of impacted soils. All cleanup activities were completed expeditiously in accordance with state cleanup standards and with regulatory concurrence.
NextEra Energy Resources' Weston hydroelectric power plant on the Kennebec River in Skowhegan, Maine.
2. We are retiring and modernizing older, less efficient fossil generation facilities.
In 2010, FPL took significant steps to modernize two power plants. The iconic 1960s-era stacks at the company's Cape Canaveral power plant were demolished in August, and construction of the new Cape Canaveral Next Generation Clean Energy Center began in March 2011. In December, the dismantling of FPL's Riviera Beach plant began as part of another modernization project. Both of the natural gas-fueled facilities, which are expected to be operational in 2013 and 2014,
3. We are developing and building modern, efficient, state-of-the-art, clean generation natural gas plants, as well as upgrading our zero-emissions nuclear power centers to produce more energy.
West County Energy Center FPL's West County Energy Center - consisting of three new, state-of-the-art, natural gasfired, combined-cycle generating units at a 220-acre site in western Palm Beach County, Fla. - is now the largest natural gas-fired power plant in the United States. All three units are safe, clean, efficient, reliable and cost-effective sources of power. And in keeping with our commitment to environmental stewardship, each unit is equipped with the best available and most advanced emission control equipment.
(continued on page 11)
NextEra Energy Power Generation and Air Emissions
Generation in thousands of MWh; SO2 and NOx in tons; CO2 in thousands of tons. CAGR = Compound annual growth rate (in %)
FPL's Martin Next Generation Solar Energy Center, the world's first hybrid solar power plant, entered commercial operation in December 2010. It is the first facility to combine a solar thermal array with a natural gas, combined-cycle unit.
SO 2 Generation 137,835 166,512
Genesis Solar, LLC, Reduces Water Consumption, Creates Jobs in California
Genesis Solar, LLC, a subsidiary of NextEra Energy Resources, announced in 2010 plans to "dry cool" its 250-MW solar thermal plant in California's Sonoran Desert a method that dramatically reduces groundwater consumption compared to "wet cooling." In fact, dry cooling will reduce the plant's groundwater use by a factor of eight, from 521 million gallons to 65 million gallons. Dry cooling is an important part of the power generation process, whereby fans blow air over a closed radiator system, condensing steam into water that is then recirculated back into the process. "Expected to employ more than 1,000 construction workers and infuse $165 million into the local economy, the Genesis Solar Project arrives at a time when economic development and renewable energy projects are so vitally needed," Riverside County (Calif.) Supervisor John J. Benoit said on the day of the announcement.
8 Construction is under way at NextEra Energy Resources' Genesis solar thermal project in California, near the Arizona border.
75,157 69,196 32,912 0 '95
Year 1995 1996 1997 1998 1999 2000 2001 2002
NOx 51,737 CO 2 35,191 25,024 3.1 -8.7 -7.1
SO2 137,835 142,229 161,227 215,433
NOx 75,157 70,838 75,694 73,299 66,271 71,168 76,792 62,946
CO2 32,912 32,012 32,494 40,930 39,723 44,807 47,162 46,911
Year 2003 2004 2005 2006 2007 2008 2009 2010
NOx 58,337 52,637 55,267 44,151 42,604 35,060 30,333 25,024
CO2 50,788 50,292 54,073 53,941 54,974 50,715 51,801 51,737 Generation 117,448 118,857 128,632 141,857 152,086 154,104 157,807 166,572
Generation 69,196 67,869 70,092 81,232 86,346 90,950 95,074 104,150
130,315 122,729 121,472 66,784 69,878 48,963 41,632 35,191
The Genesis Solar project will be composed of two 125-MW units, which are expected to produce 560 gigawatt-hours of renewable electricity each year enough to power 80,000 homes. With dry cooling, the plants' water consumption will be equivalent to the water used by only 525 of these households. NextEra Energy Resources began construction at the site in January 2011 and expects to complete the project in a 30-month timeframe.
An Environmental Leader
188,568 167,577 180,482 119,098
The environmental or green attributes attributable to the electric generation from NextEra Energy, Inc.'s facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights to all renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants that contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere (collectively, "Environmental Attributes"). In disclosing the information herein, NextEra Energy, Inc., is not claiming ownership of any Environmental Attributes for any purpose, including compliance with any federal or state law or reporting to any federal or state agency, or for any other present or future federal, state, local, international, foreign or voluntary emissions trading program.
An Environmental Leader
(continued from page 9)
Air intake structures at FPL's West County Energy Center, the largest natural gas-fired, combined-cycle power plant in the United States.
West County is able to produce approximately 3,660 MW of power, or enough electricity to power approximately 750,000 homes and businesses. Unit 3 began generating power for customers in 2011, while Units 1 and 2 came online in 2009. Nuclear Power As of Dec. 31, 2010, NextEra Energy had eight nuclear power units totaling 5,493 MW operating at five locations in four states. Nuclear power plants enjoy low operating costs and produce no greenhouse gas emissions during operations. The situation that occurred at Japan's Fukushima-Daiichi nuclear facility in March 2011 was very serious. Though it is extremely unlikely that any unit in the NextEra Energy nuclear fleet would ever experience a similar situation, we have taken a number of immediate, proactive steps to ensure that our plants are fully capable of responding to similar types of extreme events. For example, in the month following the Japanese event: » each of our units revalidated the readiness and functionality of the emergency response equipment we put in place after Sept. 11, 2001; » we completed a full review of our ability to respond to "station blackout" conditions resulting in a complete loss of power to critical systems; » we completed an evaluation of our flooding protection and response capabilities; and » we conducted an analysis of every plant's ability to deal with seismic and other extreme natural events. Having completed these initial actions, our team is now working with the rest of the industry to develop proactive guidelines and a set of longer-term recommendations to ensure we maintain the highest possible safety margins for all operating nuclear plants. In December 2010, following a rigorous environmental and safety review, the U.S. Nuclear Regulatory Commission approved a 20-year license extension for our Duane Arnold Energy Center (DAEC) in Iowa. The plant's initial operating license was set to expire in 2014. We also remain on schedule with our existing plans to boost the output of our nuclear fleet through a series of "uprates" to the non-nuclear components of the plants. In Florida, we expect to invest more than $2 billion in our Turkey Point and St. Lucie nuclear power plants, adding at least 400 MW of generation which is the equivalent of a medium-sized power plant all by itself. We continue to plan to move forward in a step-wise fashion to create the option to build two additional nuclear units at Turkey Point. Creating the option at this stage is limited to obtaining the necessary federal, state and local approvals.
conventional steam units with new highly efficient, gas-fired combined-cycle units beginning with the Lauderdale plant. Then in 2004, FPL began installing emission controls beginning with installation of electrostatic precipitators (ESPs) on some of its oil-fired conventional steam units to remove particulate matter (soot) and hazardous air pollutants (HAPs) during use of fuel oil at the plant. In response to the proposed regulation by the U.S. Environmental Protection Agency (EPA) of SO2, NOx and mercury from coal-fired units, FPL committed to install selective catalytic reduction (SCR), flue gas desulphurization (FGD), and activated carbon sorbent injection at its Scherer plant in Georgia. This action, which represents the maximum achievable control technology, will result in the Scherer unit having one of the lowest emission rates of air pollutants of coal-fired units in the United States once construction is complete in 2012. FPL also installed SCR to reduce NOx and mercury emissions at its other coal-fired unit (St. Johns River in Jacksonville). In 2010, the Florida Public Service Commission (PSC) approved FPL's installation of ESPs at the oil-fired steam electric generating units at its Martin and Manatee plants as maximum achievable control technologies to curb emissions of particulates and HAPs.
Growth in Transmission Infrastructure
In addition to building renewable generation, we are also developing transmission to carry that power from the remote locations where it is generated to the population centers that use it. We own various transmission lines across the country and are pursuing additional large-scale opportunities to develop, build and operate transmission facilities. Lone Star Transmission, NextEra Energy's regulated utility in Texas, has the capability to license, construct, operate and maintain Competitive Renewable Energy Zone transmission facilities in Texas. In 2010, Lone Star Transmission received approval to build a roughly 320-mile-long transmission line intended to pave the way for expansion of renewable energy in the state.
Voluntary Efforts to Reduce Greenhouse Gases
On the strength of our clean energy generation portfolio, NextEra Energy has set and met various voluntary greenhouse gas (GHG) reduction targets.
Improving Power Plant Efficiency
Under the World Wildlife Fund's PowerSwitch! program, for example, we committed to a 15 percent improvement in the efficiency of our power plant fleet by 2020 from a 2002 baseline. As a result of our investments in highefficiency, combined-cycle natural gas plants, which displace generation from older, less efficient plants, we exceeded our improvement goal in 2009, 11 years ahead of target.
4. Installing the best available environmental controls to dramatically lower air pollutant emissions.
Beginning in the 1990s, to reduce emissions at its conventional steam electric generating units, FPL committed to burning lower-emitting fuels including natural gas and low-sulfur coal and oil. At that same time, FPL also began repowering its older
An Environmental Leader An Environmental Leader
Making Our Vehicle Fleet Cleaner
In pursuing a clean energy future, we go beyond our power generation infrastructure. Nearly 1,700 biodiesel-powered vehicles and more than 370 hybrid electric vehicles are in use at NextEra Energy today. Those vehicles represent 85 percent of our entire vehicle fleet. Using those vehicles saved the company more than 538,000 gallons of fuel in 2010 and reduced our carbon footprint by 4,700 metric tons of CO2 - the equivalent of taking more than 900 cars off the road. We also have 41 plug-in electric vehicles (PEVs) in use as of Sept. 22, 2011. They include 13 Nissan Leaf and four Think City cars, and 10 Ford Transit Connect and four Navistar eStar vans. Industrial hybrid-electric trucks use 40 to 60 percent less fuel than traditional diesel-burning trucks, and when used with biodiesel they reduce exhaust emissions as much as 90 percent. Our biodiesel hybrids operate on a custom-blended mixture of 20 percent soybean oil and 80 percent diesel fuel.
in 2009 NextEra Energy Resources launched the EarthEra Renewable Energy Trust. EarthEra provides individuals, organizations and governments with innovative ways to reduce greenhouse gas emissions with confidence. When customers purchase EarthEra renewable energy certificates and emissions reduction products, 100 percent of the proceeds go into the EarthEra Renewable Energy Trust and are used to build projects owned and managed by NextEra Energy Resources or its subsidiaries. An independent trustee, U.S. Bank, as well as the EarthEra Advisory Board, verifies the Trust uses 100 percent of funds to build renewable energy facilities. All marketing, administrative and other overhead expenses are paid by NextEra Energy Resources. As of Dec. 31, 2010, approximately $39 million has been committed to the EarthEra Renewable Energy Trust. Participants include Whole Foods, BNY Mellon, Citigroup, HSBC Bank, The PGA of America, Avis Budget Group, ING, Neenah Paper, Dow Corning, Office Depot, International Speedway Corp., City of Denton, Texas, and many more. The EarthEra team continues to develop new partnerships. At EarthEra.com, individuals and organizations can use the convenient carbon calculator to assess and offset their carbon footprint. More information about EarthEra and the Trust is available at www.EarthEra.com.
standards vary, the majority include requirements to meet 10 to 25 percent of the electricity providers' retail sales with renewable energy by 2025. » Beginning in January 2009, our generating facilities in Northeast and Mid-Atlantic states began to report carbon dioxide emissions under the guidelines of the Regional Greenhouse Gas Initiative (RGGI). Through RGGI, 10 member states agreed to cap CO2 emissions from power plants at 2009 levels through the end of 2014, and reduce emissions by another 10 percent by the end of 2018. Twelve of our generation units fall under this mandate, requiring the units reduce emissions or acquire CO2 emissions allowances. Our Bayswater facility in New York, which was allocated 21,894 allowances in 2010, was the only plant in our fleet allocated RGGI allowances last year. » We own generation facilities in California, which recently enacted a robust renewable portfolio standard into law, requiring load-serving entities to obtain 33 percent of their power from renewable sources by 2020. With this effort, California made itself one of the nation's most attractive renewable energy markets, and NextEra Energy looks forward to doing additional business in the state. In each of these locations, our regulatory risk from future GHG reduction requirements is mitigated by generating electricity primarily from natural gas, nuclear and renewables.
generating units identified that both FPL and NextEra Energy Resources are likely to be allocated sufficient allowances to meet the emission limits set by EPA but would likely not have a wide compliance margin that would result in large numbers of banked allowances. » In March 2011, EPA signed and released the proposed Clean Water Act Section 316(b) Rule regulating intakes and once-through cooling systems at existing facilities. The rule is intended to require power plants or other industrial plants that use more than 2 million gallons of surface water per day for cooling purposes to utilize the Best Technology Available (BTA) to reduce adverse environmental impacts, mainly to fish and shellfish. A significant number of our facilities may be impacted by this rule, which is expected to be finalized in summer 2012. » Also in March 2011, EPA issued a proposed rule that would reduce emissions of toxic air pollutants from new and existing coal- and oil-fired electric utility steam generating units. The proposed toxics rule would reduce emissions of heavy metals, including mercury, arsenic, chromium and nickel, and acid gases, including hydrogen chloride and hydrogen fluoride. EPA estimates that there are approximately 1,350 units affected by this action. As a result of control installations at NextEra Energy facilities, only a few of our oil- and coal-fired facilities would be affected. A range of practices are available to power plants to meet the proposed emission limits, including wet and dry scrubbers, dry sorbent injection systems and activated carbon injection systems. A final rule is expected by November 2011. » In December 2010, EPA released its final rule governing electrical transmission and distribution equipment use. This source category consists of all equipment and servicing inventory insulated with or containing sulfurhexafloride or perfluorocarbons. Affected operators, including FPL, began collecting data in January 2011 and the first emissions report is due March 31, 2012, for the 2011 period. For a more complete discussion of EPA actions impacting our company, please see pp. 15-17 of the NextEra Energy 2010 Form 10-K at www.NextEraEnergy.com.
Status of GHG EmissionsReduction Programs
These Navistar E-Star (l) and Ford Transit Connect (r) vans are among a number of plug-in electric vehicles (PEVs) in service or on order at FPL.
In some regions and states where NextEra Energy owns facilities, mandatory greenhouse gas emissions-reduction programs are being developed, and the company is actively participating in discussions about the structure of those programs. For example: » Renewable portfolio standards, in place in approximately 30 states and the District of Columbia as of Dec. 31, 2010, require electricity providers to meet a certain percentage of their retail sales with renewable energy. While these
EPA Actions Affecting Our Industry
Meantime, EPA is implementing a variety of regulatory actions pursuant to federal law, and NextEra Energy is committed to compliance. Here are a few recent examples: » On July 6, 2011, EPA finalized the Cross-State Air Pollution Rule, which replaces the Clean Air Interstate Rule. The rule requires 27 states to significantly improve air quality by reducing power plant emissions that contribute to ozone or fine particle pollution in other states. A review of the rule's impact on NextEra Energy's
Expanding EarthEra Renewable Energy Trust
Realizing that many individuals, businesses and organizations are seeking strategies to contribute to a low-carbon economy,
Helping Our Customers `Drive Electric'
We want to use our experience and commitment to electric vehicles to help our customers make smart choices when it comes to getting ready to bring home a PEV. We are helping them understand the equipment, as well as the permitting and installation requirements to charge these vehicles at home. We stress that it's important to ask a dealer what type of charging is recommended by the vehicle's manufacturer, where to purchase a charging station, and the permitting required for installing the charging station at home. The dealer should also notify FPL - prior to delivering the vehicle - that the customer will be charging at home. We're gathering this information to determine whether future electric infrastructure upgrades are needed in areas showing a high concentration of PEVs. For more information on FPL's electric vehicle program, go to www.FPL.com/EV.
Avoided CO2 from NextEra Energy Zero-Emitting Generation and Demand-Side Management - 2010
Source Wind Solar (SEGS-Calif.) Solar (DeSoto-Fla.) Solar (Space Coast-Fla.) Hydro (Maine) Nuclear (St. Lucie-Fla.) Nuclear (Turkey Point-Fla.) FPL's Marie Bertot (r) conducts an interview at an electric vehicle charging station ribbon-cutting ceremony in West Palm Beach, Fla., on June 3, 2011.
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19,880,999 296,783 53,268 13,994 1,621,291 11,540,590 11,305,404
CO2 Avoided (Tons) 18,161,019 153,971 28,259 7,424 555,292 6,122,283 5,997,517
Source Nuclear (Duane Arnold-Iowa) Nuclear (Point Beach-Wisc.) Nuclear (Seabrook-NH) Demand Side Management (Fla.)
3,115,448 8,297,509 9,622,668 4,459,732 70,207,686
CO2 Avoided (Tons) 2,964,349 7,106,816 3,141,801 2,365,888 46,604,619
The environmental or green attributes attributable to the electric generation from NextEra Energy, Inc.'s facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights to all renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants that contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere (collectively, "Environmental Attributes"). In disclosing the information herein, NextEra Energy, Inc., is not claiming ownership of any Environmental Attributes for any purpose, including compliance with any federal or state law or reporting to any federal or state agency, or for any other present or future federal, state, local, international, foreign or voluntary emissions trading program.
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Expanding Water Conservation
NextEra Energy is committed to balancing the water needs of the environment and our society's need for electricity. Water is a critical input to the production of electricity. In the process of generating electricity, our facilities withdraw water to produce steam to spin turbines connected to electric generators, and to cool various components of the power plant. The NextEra Energy fleet employs a range of power generation technologies that have different water requirements often driven by regional water availability. Once-through cooled power plants are located adjacent to large water bodies such as the ocean. These plants withdraw water in the power generation process and return the water after it cools the steam needed to generate electricity. The NextEra Energy fleet also contains a number of combined-cycle plants that create nearly twice the electricity for the same amount of cooling water as traditional steam generators. To further reduce water withdrawal, we employ cooling towers at several power plants, reducing water withdrawal by up to 90 percent compared to a once-through plant. This reduction in water withdrawal comes at a cost - most of the water withdrawn (approximately 75 percent) evaporates in the cooling tower, resulting in less water returned to the source from which it was withdrawn. We also have cooling ponds at many of our facilities that reduce the amount of water withdrawn from other surface water and groundwater sources. In 2010, approximately 1.7 trillion gallons of water were withdrawn from different sources by the NextEra Energy power generation fleet. This represents a withdrawal rate1 of 9,900 gallons of water per megawatt hour (gal/MWh) of electricity 1,699 1,666 produced. We have reduced this rate significantly. It 2007, it was
13,900 gal/MWh, in 2008 it was 13,600 gal/MWh, and in 2009 it was 11,900 gal/MWh. Our 2010 withdrawal rate of 9,900 gal/ MWh was the lowest rate among all participants at the 2010 Utility Environmental Benchmarking Forum. And almost one in eight of the megawatt hours we generated in 2010 were generated by wind or solar plants renewable energy sources that require no water withdrawal for operations. Of note, our water withdrawal rate is declining both because our generation from renewable energy sources is increasing, and our generation from sources requiring water use is becoming more efficient. Water used by NextEra Energy generation stations comes from several different sources. More than 99 percent comes from surface sources, 0.3 percent from groundwater sources, 0.2 percent is purchased from municipal sources, and 0.2 percent is reclaimed water from publicly owned treatment works (i.e., sewage treatment plants). Of the surface water, 78 percent is from marine (ocean and estuarine) sources, which have virtually no availability risk during droughts. The remaining surface water withdrawn (22 percent) comes from freshwater sources. Approximately 98 percent of the water NextEra Energy withdraws for power plant cooling purposes is returned to its original water source.
cycle natural gas facilities could result in a lower water risk. Other generating companies that use conventional steam plants requiring the withdrawal of larger quantities of water for cooling may face a higher water risk.
or EPA to ensure that the plant water intakes are designed and located to minimize adverse environmental impacts. In most states, generating stations using groundwater, fresh surface water and, in some cases, saltwater are regulated by various governmental entities. Generally, facilities are required to obtain withdrawal permits and to evaluate their uses of water every 5 to 20 years. These evaluations generally include looking at opportunities for recycling, minimizing usage and finding ways to use "lower quality" water such as reclaimed or non-potable water. For example, FPL's 3,660-MW West County Energy Center in Palm Beach County, Fla., recently signed a long-term contract with the county to purchase reclaimed water in place of surface or groundwater, both of which are more susceptible to drought and competing uses (see sidebar). NextEra Energy has focused on expanding generation technologies that minimize water withdrawal, thereby lowering water-supply risks to the company's operations. NextEra Energy Resources' growth in wind and other renewable energy has resulted in significant increases in generation that require essentially no water resources to generate electricity. In 2009, FPL welcomed President Obama to the commissioning of the DeSoto County Next Generation Solar Energy Center in Florida, which opened as the largest solar photovoltaic facility in the country at 25 MW. This facility uses no water in the production of electricity. Also, our company's proposed 250-MW Genesis solar thermal generating station in California will use air-cooled condensers in place of watercooled condensers to minimize water use.
Addressing Regulatory Risks to Operations
Future regulatory limits on water intake and discharge are likely to require controls or changes in plant operation. Also, water limitations or competition for water supplies may limit the availability of suitable power plant sites for future generating facilities. Reduced water resources or tighter limits on intake or discharge will make siting power plants more difficult and costly for the company and customers in the future. NextEra Energy's facilities that use once-through cooling systems are likely to face additional regulation under section 316(b) of the Clean Water Act. Anticipating that development, we are participating with the Utility Water Act Group and the Edision Electric Institute (EEI) to advocate a reasonable cost-benefit approach to the implementation of future 316(b) regulation. Our company's position is that EPA use site-specific evaluations and a cost-benefit analysis to ensure that unintended consequences, such as increased cost and efficiency losses, do not occur as a result of 316(b) implementation. Further, we have already initiated facility demonstration studies to evaluate the impact of oncethrough cooling at each of NextEra Energy's facilities and to help identify the appropriate level of environmental protection.
Water Stewardship Opportunities Presented by Water-Related Risks
Because water is an essential component of power production, NextEra Energy employs a management strategy that emphasizes conservation, efficiency and use-reduction technologies, and best management practices to decrease our generating stations' environmental footprint while increasing operational and financial performance. The company's current generation portfolio and projected growth of wind and solar generating facilities and combined-
Addressing Water Withdrawal and Supply Risk
All withdrawals of surface water used as plant cooling water are regulated by the states, local water management districts
Preserving Groundwater in South Florida
The use of water as a coolant is an essential step in the generation of electricity for Florida residents. Several years ago, FPL and Palm Beach County partnered to develop an innovative reclaimed water project. Completed in 2010 at $8 million under budget and three months ahead of schedule, the project creates a more sustainable future for Florida by reusing municipal wastewater that would otherwise be discarded, and avoids the use of more than 8 billion gallons of groundwater each year. This unique project provides an average of 22 million gallons and up to 27 million gallons of reclaimed water per day for the operation of three highly efficient natural gas-fired power generation units at FPL's West County Energy Center, located in western Palm Beach County. Today, this innovative project is the largest single user of reclaimed water in Florida, the nation's second largest use of 13.9 13.6 11.9 reclaimed water by a power plant, and continues to provide a 9.9 beneficial solution for the reuse of municipal wastewater.
By reusing municipal wastewater, FPL and Palm Beach County save the use of more than 8 billion gallons of groundwater annually.
Plant Water Utilization
Water utilized by Florida Power & Light plants by category
NextEra Energy Water Withdrawal Rate
In thousands of gallons per MWh
10 Surface-Estuarine 35.1% Consumed Reused
Returned Surface-Ocean 42.0%
Water Withdrawn, Consumed, Reused and Returned at NextEra Energy
In billions of gallons, 2010
1,699 Surface-Fresh 22.2%
City, Ground, Reclaimed 0.7%
38 Withdrawn Consumed
10 Reused Returned
The partnership was named a finalist in the 2011 Best Practice Awards competition sponsored by the Collins Center 2007 2008 2009 2010 Sustainable Florida.
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These calculations do not include water used for power production at NextEra Energy's hydroelectric generating facilities in Maine, which harness the natural energy in flowing water.
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Mitigating Supply Risk through Water Conservation
To help facilitate water conservation efforts, NextEra Energy uses tools and metrics to improve processes and identify technologies that make water usage at our facilities more manageable and sustainable. At existing facilities we employ a variety of water management measures that promote the responsible use of water through water use reduction, conservation and recycling technologies. NextEra Energy's two subsidiaries FPL and NextEra Energy Resources operate in 28 states and Canada, so site-specific factors often determine water usage strategies for each location. Because addressing water supply risks is intrinsic to our business strategy, our first step when planning for new electric power generation facilities is conducting a site-specific water analysis to select the appropriate generation and cooling technologies for the location. Our experience in operating power generating facilities in such diverse environments as Florida (which averages 55" of rain annually) to California's Mojave Desert (which averages just 5" of rain annually) gives us a keen appreciation of the influence that local or regional water availability can have on water management strategies. Selecting the appropriate electric power generating equipment is an important aspect of minimizing the water-related impact of our operations. Next, where feasible we try to identify the lowest-quality water sources that meet our needs. In areas where fresh water is limited we utilize reclaimed municipal wastewater, recycled storm water and brackish or saltwater from the ocean, and deep wells in lower quality aquifers. This helps us to avoid
impacting potable water supplies or competing with the freshwater needs of society and the environment. For existing electric generating sites, water conservation efforts are part of our ongoing strategy for minimizing water demand. Once facilities are operating, we employ water management and governance practices and goals that exemplify NextEra Energy's corporate culture of continuous improvement. Existing facilities are challenged to be innovative and to fine-tune their operations. For example, our Turkey Point site recently enhanced its coolingtower water quality control program to provide water withdrawal savings of nearly 1 million gallons per day. Practices such as these are shared and implemented fleet wide, whenever feasible. Using tools such as our Environmental Management System, we identify processes, procedures and best management practices that can be developed into corporate water sustainability and conservation policies. Our culture of continuous improvement was the stimulus for establishing a Water Strategy Team to develop comprehensive corporatewide water management policies, strategies and plans that build on site-specific efforts and reflect our company's environmental commitment. The team is currently developing and implementing water use and management metrics and targets as well as risk assessment metrics that will help our facilities use water in a more sustainable way.
risk of increased water scarcity. One option is to expand water reuse at our facilities. Reclaimed water is used for cooling at three of our facilities the Rhode Island State Energy Center, Forney Energy Center in Texas and West County Energy Center in Florida. Using reclaimed water to generate electricity offsets the demand for higher-quality water while providing a secondary beneficial reuse of municipal wastewater. Should the proposed new nuclear units 6 & 7 be built at our Turkey Point site south of Miami, reclaimed water is planned for use there, and will also replace current groundwater withdrawals at unit 5. In addition, a number of solar thermal projects under evaluation may use reclaimed water for cooling in the generation of electricity. To minimize water demands, air-cooled condensers are used at our Bellingham power plant in Massachusetts, Doswell facility in Virginia and Sayreville plant in New Jersey, and are proposed for our Genesis solar thermal power plant under development in California. While several of our facilities are "zero liquid discharge" facilities and reuse 100 percent of their water, we currently do not measure the volume of recycled water in a consistent manner across the generating fleet. Future corporate water policy objectives include establishing tracking metrics for water use. Desalinization plants are currently being evaluated both as a water supply for electric generation at existing oncethrough cooling facilities, and to help local water utilities provide potable water and reduce water withdrawal from the environment. Studies and discussions with agencies have occurred in conjunction with multiple FPL plants.
from an archaeological perspective. Pottery fragments and other artifacts have been found on the site, indicating use by Native Americans between 300 and 900 years ago. The swamp was closed to the public as a security measure after Sept. 11, 2001, but in 2010, FPL partnered with the Treasured Lands Foundation (TLF), a local non-profit organization, to provide free, public tours of the swamp. As part of the reopening initiative, FPL also conducted repairs and invasive plant maintenance. Barley Barber opened to the public in November 2010 and the tours have been extremely popular, with many of the weekend time slots filled to capacity. In November and December 2010, 890 people participated in the tours. TLF and FPL have also established special tours for naturalists, photographers and school groups, including early-morning birding tours and fullmoon owl watching tours. In 2011, leading environmentalist Nathaniel Reed visited the swamp. For detailed tour information, please visit www.BarleyBarber.org.
Mitigation Banking to Help Restore the Everglades
"Mitigation banking" generally involves creating, enhancing and preserving wetlands on a large tract at one location to provide mitigating "credits" to offset unavoidable wetland impacts elsewhere. FPL's Everglades Mitigation Bank is a critical link to the success of restoring the Everglades ecosystem to its natural condition. The 13,249-acre project is located in southern Miami-Dade County adjacent to our Turkey Point plant. Home to 46 protected species of wildlife designated as endangered, threatened or of special concern, it contains several unique ecosystems. The size and location of the mitigation bank makes it a major contributor to a seamless wildlife corridor between two national parks, Biscayne and Everglades. These environmentally sensitive lands are a key component to the Comprehensive Everglades Restoration Plan.
Addressing Supply Risk through Alternative Water Sources
As NextEra Energy seeks to respond to customer growth and increased electricity production needs, we are evaluating potential alternatives for future water supplies to mitigate the
Headquarters Facility Achieves U.S. Green Building Council's Gold LEED Certification
NextEra Energy's headquarters, home to Florida Power & Light Company, NextEra Energy Resources and other NextEra Energy subsidiaries, achieved the prestigious Gold-level Leadership in Energy and Environmental Design (LEED) certification in 2010 for Existing Buildings: Operations & Maintenance. Developed by the U.S. Green Building Council, LEED is the nationally accepted benchmark for the design, construction and operation of high-performance "green" buildings. It serves as third-party verification that a facility employs proven strategies to maximize operational efficiency while minimizing environmental impacts across a variety of metrics, from energy and water efficiency and indoor environmental quality to solid waste management and sustainable purchasing. "This recognition underscores our company's core commitment to operational excellence and environmental sustainability," said Bob McGrath, NextEra Energy executive vice president of engineering, construction and corporate services. "While we continue to enhance our own performance, we also work with our like-minded neighbors in the business community to implement similar innovative, energy-reducing programs that contribute to a more energyefficient, environmentally friendly Florida." NextEra Energy's headquarters comprises five buildings in Juno Beach, Fla. While LEED-certified single-structure new
Conserving Land Resources
As an energy company with a presence in varied geographies in 28 states, Canada and Spain, we respect the land on and around which our facilities are located. We are constantly looking for ways to preserve and protect that land. The following are a few examples of the kind of protective actions we take on behalf of these resources.
construction is becoming more common, converting existing facilities can present a substantial challenge. Employees of NextEra Energy and its subsidiaries worked for three years to integrate a series of measures designed to achieve significant energy savings while ensuring the smooth operation of the campus' many operational units some of which operate 24 hours a day to monitor the electric grid and power plants in Florida and across North America. Key areas of the intensive greening process included: » Installing heating, ventilation and air-conditioning improvements and lighting upgrades » Converting to the use of environmentally positive materials, including chemicals, paper and carpeting » Implementing programs that now result in the recycling of 240 tons of paper a year, which is the equivalent of saving 4,080 mature trees annually » Surveying more than 2,800 campus employees to understand their transportation habits
Helping Preserve South Florida's Natural Beauty
Protecting the Barley Barber Swamp
In 1972, when constructing the Martin power plant and cooling pond, FPL set aside the Barley Barber Swamp as a wildlife preserve. Its natural beauty remains intact and provides a rare glimpse of "Old Florida." Located in western Martin County, the 400-acre Barley Barber Swamp consists of a cypress-stand ecosystem. A slough that retains surface water throughout much of the year, the Barley Barber Swamp sustains ancient cypress trees and other hydrophilic (water-loving) plants. The slow-moving, coffee-colored water is home to diverse wildlife, from alligators to wading birds and turtles. Dappled sunlight filters through the cypress branches, illuminating the diverse vegetation below. Eagles soar overhead, and the echoes of drumming woodpeckers and singing birds comprise the soundtrack of the swamp. In addition to being a wildlife sanctuary, the site is also significant
The Everglades Mitigation Bank is a major contributor to the seamless corridor between Biscayne National Park and Everglades National Park. 17
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Construction of Phase I of our mitigation bank is complete, all credits released, and the restoration successful. We are working on Phase II, which involves restoring the historical water distribution pattern for more than 9,000 acres of sawgrass marsh, high marsh, forested tree islands and mangrove habitat. We have installed more than 40 culverts to restore historical water flows using freshwater that is lost to discharge in Card Sound. These culverts will evenly distribute freshwater to restore historic water flows, increasing and expanding the healthy sawgrass and needle rush marshes, as well as improve the health of stunted mangroves due to hyper-saline conditions. In addition to restoring important nursery areas, the Card Sound and Little Card areas will benefit from improved salinity conditions and an increase in fish populations. We also removed hydrological barriers on Tallahassee Road and built and maintained four acres of new crocodile nesting habitat. Our Everglades Mitigation Bank has earned the support of various state and local environmental organizations, including Friends of the Everglades and the Wilderness Society. In addition, EEI presented us its national Land Management Award in 2001 for our environmental stewardship and management of wetlands, including the Everglades Mitigation Bank.
software, and field investigations. Many criteria are evaluated during initial discussions about locating infrastructure, including the potential presence of threatened or endangered species and the proximity to valuable wildlife corridors, wetlands or other ecologically important areas. Efforts are made to avoid these areas entirely. If development cannot be avoided, we seek to minimize the impact to affected areas, and a policy of avoidance, minimization and mitigation is used throughout our company. We also maintain formal systems to ensure that wildlife protection policies are implemented. We hold lectures and show videos to familiarize construction personnel with particular sites and wildlife issues. Once construction is complete, personnel are trained prior to the start of a facility's operation. While environmental personnel generally conduct the training, we often ask for the participation of regulatory agency personnel and members of environmental organizations to further enhance the curriculum. In addition, we review all permits and licenses to ensure that all environmental requirements they contain are understood and met.
Promoting Sound Bird Research and Science More than 400 species of birds call Florida home and the state is also home to more than 1,300 bald eagle nests. In an effort to conserve these bird species, FPL submitted a voluntary Avian Protection Plan to the U.S. Fish & Wildlife Service in May 2007. The plan consisted of voluntary modifications to poles to make them avian friendly. FPL partnered with Pandion Systems, Inc., to develop a unique and innovative predictive model for Avian Risk Assessment through its service territory. As part of our efforts, we retrofitted more than 21,000 poles since 2004 to meet avian-friendly standards. Monitoring and Caring for Sea Turtles FPL has embraced the protection and monitoring of sea turtles for more than 30 years. Near our St. Lucie nuclear power plant on Florida's Atlantic coast, female sea turtles use the 2.5 miles of beach just east of the power plant as one of their most important nesting areas in the state. Due to the location of the plant and the design and operation of its intake cooling water system, sea turtles sometimes inadvertently enter the plant's cooling canal system. We use trained biologists to monitor for turtles that may have entered the canal system. Turtles that are found in the canal are removed, and a health assessment is performed on them. These assessments have allowed us to build a unique, longterm database. The overwhelming majority of turtles we find are healthy and are returned to the ocean. Those with injuries or health issues are transported to the Loggerhead Marinelife Center in Juno Beach, a sea turtle hospital and educational
center that has operated for more than 25 years. The Center opened a state-of-the-art care facility in 2008, thanks in part to a $250,000 contribution by our shareholders. In early 2010, southeast Florida experienced extremely cold temperatures for a prolonged period of time. In January and February, the cold weather resulted in a significant impact on sea turtles. The rapid drop in air and water temperature caused sea turtles across the state to become "cold stunned," a condition similar to hypothermia. Facilities at our St. Lucie plant became a temporary refuge from the cold for a total of 311 "cold stunned" turtles from Brevard, Indian River, Martin and St. Lucie counties. During the cold snap, biologists monitored the turtles until it was determined that they could be released back into Florida's coastal waters. During the summer months, FPL staff members conduct popular "turtle walks" along the beach to allow visitors to observe nesting turtles in their native habitat. Enhancing Habitat for American Crocodiles The American crocodile was on the brink of extinction in the late 1970s. Today, more than three decades after FPL created a unique crocodile habitat at its Turkey Point power plant south of Miami, the crocodile is flourishing, and the U.S. government downlisted it from an endangered species to a threatened species a notable accomplishment. Turkey Point's 5,900-acre man-made cooling canal system offers ideal nesting conditions for the crocodile. Over the past 33 years, 5,675 hatchlings have been tagged from 362
Recreation Access and Wetlands Protection in New Jersey
On the property of our new 5-MW Paradise solar field in West Deptford, NJ, we will be protecting two archeological areas discovered during extensive cultural surveys of the site. We have also established wetland buffers, a public kiosk and a mulch walking trail to allow public access to the nearby water bodies of Mantua and Little Mantua Creek.
Enhancing Wildlife Protection Programs
A Localized Approach
To enhance our commitment to sustainable operations, NextEra Energy adopts environmental policies and programs at the local level, where we can monitor the impact of existing operations and the potential impact of future operations on wildlife. Many of those initiatives are detailed in the pages that follow. We have multiple reporting systems to track key data on threatened and endangered species, as well as processes to evaluate techniques for minimizing impact on wildlife. At NextEra Energy Resources, these policies include a wildlife reporting system, habitat mapping, bird surveys, bat acoustical monitoring, post-construction wildlife monitoring, and a research partnership with five universities and two federal agencies to promote scientific advances in protecting wildlife. FPL has an avian protection plan, manatee protection plans, a crocodile monitoring program, a sea turtle monitoring program, corporate endangered species management procedures and a scrub-jay habitat vegetation management plan. To evaluate the potential impact of proposed projects, we use numerous tools and processes, including wildlife risk assessments, Geographic Information Systems mapping
18 At the Loggerhead Marinelife Center in Juno Beach, Fla., sea turtles with injuries or health issues receive care and rehabilitation. NextEra Energy supports the Center and has embraced the protection and monitoring of sea turtles for more than 30 years.
Protecting Threatened and Endangered Animals
Over the years, NextEra Energy has earned a reputation as a leader in the protection of threatened and endangered species. The International Union for Conservation of Nature's Red List is the world's most comprehensive inventory of the global conservation status of plant and animal species. It uses a set of criteria to evaluate the endangerment risk to thousands of species and subspecies, and is recognized as the authoritative guide to the status of biological diversity in the world. Florida Power & Light is making an important contribution to a number of vulnerable species monitored by the Red List including the crocodile, Florida scrub-jay and loggerhead turtle. NextEra Energy Resources is working with scientists and federal agencies to study and protect the black-capped vireo, a variety of bats, and whooping cranes.
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Over the past 33 years, 5,675 American crocodile hatchlings have been recorded at FPL's Turkey Point power plant site south of Miami. The crocodile is flourishing in the unique habitat FPL created at the site, and the U.S. government has downlisted the species from an endangered species to a threatened species a notable accomplishment.
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recorded nests at Turkey Point. For the 2010 nesting season, FPL recorded 16 successful nests and 196 hatchlings. While the recorded hatchlings were lower than in previous years, they were comparable to the below-normal nest and hatchling numbers documented for North Key Largo and the Everglades National Park populations in 2010. During the winter of 2009-2010, South Florida experienced prolonged, record-low temperatures, which seem to have had an effect on crocodile reproduction. FPL will continue its monitoring efforts in order to better understand the potential trends for the Turkey Point crocodile population and its contribution to the recovery of the species.
FPL has taken on a number of new initiatives recently on behalf of manatees. » At our Riviera power plant - In January 2010, FPL launched an online "Manatee Cam," inviting the public to view these gentle giants taking advantage of Riviera's warm water refuge. The website received 95,834 hits worldwide in 2010. FPL also sponsored its 119th aerial survey since 1977. These surveys have been critical in helping scientists and resource managers determine the manatee distribution and population throughout Florida. On Feb. 18, 2010, the survey record was broken with 2,750 manatees counted. FPL demolished the aging Riviera Beach plant in 2011 to make way for the new, state-of-the-art Riviera Beach Next Generation Clean Energy Center, and FPL has committed to build a manatee-viewing center adjacent to this modernized site. » At our Canaveral power plant - In September 2010, FPL placed into service a similar temporary heating system at our Cape Canaveral plant in Brevard County. With the additional heat from supplementary heaters, this system provided warm water to manatees during the demolition of this plant in 2010 to make way for FPL's new Cape Canaveral Next Generation Clean Energy Center. The system will remain in service during the construction of the new facility. Over the past year, FPL provided 8,000 manatee brochures and bumper stickers to the public to promote manatee protection and conservation. Monitoring Bat Activity In our efforts to understand the potential effects of wind farms on our ecosystems, NextEra Energy Resources in 2010 was one of the first wind energy companies to put a stateof-the-art, full-spectrum acoustic monitoring system on a turbine to measure bat activity at an operating wind farm. This pioneering approach, paired with a second year of mortality data from other field work, generated a rich database that is being analyzed to gain a better understanding of how bats navigate the wind farm and the turbines. In addition to this bat monitoring project, NextEra Energy Resources has conducted extensive pre-construction bat acoustic monitoring at numerous other locations in the U.S. and Canada to help identify species and numbers of bats in prospective wind site development areas. Understanding Breeding and Grassland Birds NextEra Energy Resources is working hard to understand how birds nest and interact with habitats on a wind farm. In 2009, we launched field testing of more effective methods for gathering data and generating accurate estimates of important biological metrics such as nest success. Since 2009, we have gathered and analyzed extensive data on grassland and nesting birds including the scissor-tailed flycatcher, eastern meadowlark, dickcissel, northern cardinal, white-eyed vireo, and lark sparrow. In 2010, a workshop was held for U.S. Fish and Wildlife Service (FWS) personnel to discuss findings and future areas of study. Results were also presented at two national conferences. Researchers are submitting their work for
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publication in peer-reviewed scientific journals so findings can be shared with the wind industry and policy makers. Safeguarding Habitat for Whooping Cranes To enhance the conservation and maintenance of a migratory habitat for the endangered whooping crane in North Dakota, we have entered into a unique partnership with the American Foundation for Wildlife and Ducks Unlimited. Through our Baldwin Wind Energy Center, our company will provide the $200,000 Protection Fund, which will support conservation easements in the area, known as a high-use whooping crane migration corridor.
Energy Resources' Maine Hydro has worked to improve loon reproduction at the Mooselookmeguntic, Richardson, Aziscohos, Indian Pond, Wyman Lake, Brassua and Flagstaff hydro reservoirs. Artificial nesting islands or "rafts" were created as the primary management tool in reducing the impacts of water level fluctuations on nesting loons. These rafts are floating platforms constructed from natural materials such as logs and moss, and have canopies that help protect the eggs. The rafts are deployed by boat at specific nest sites. NextEra Energy Resources conducts weekly surveys and actively manages the loon populations by using these rafts on its reservoirs. The impact of these management efforts is extremely encouraging. Since the implementation of the loon raft program at these reservoirs in 2000, the overall loon chick productivity has doubled. Studying the Black-Capped Vireo At NextEra Energy Resources, we have assisted the FWS for several years in gathering data about the Black-Capped Vireo (BCV), an endangered, thumb-sized bird that lives in Texas and winters in Mexico. In 2010, we funded research to support an in-depth study of the BCV at our Horse Hollow wind facility to understand the nature and extent of the relationship between commercial wind energy facilities and the habitat and fitness of shrub-nesting songbirds, especially the BCV. Results from the first field season were presented at a national conference on wind and wildlife, and a workshop was held for FWS personnel interested in the BCV. In 2011, we are once again the lead financial supporter for this BCV study, working in partnership with the American Wind and Wildlife Institute to ensure a second, critical field season.
Crocodile Nests at FPL's Turkey Point Property
30 25 20 15 10 5
Loons receive special attention at NextEra Energy Resources' locations in Maine.
1978 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 2010
Protecting Manatees For decades, FPL has been committed to protecting the endangered Florida manatee and to fostering public and employee education and support. In November 2009, FPL placed a temporary heating system into service at our Riviera Beach power plant, heating water during the winter to protect manatees while the plant was not operating. The 2009-2010 winter was one of the coldest on record and caused at least 193 manatee fatalities related to cold stress in Florida, but only three occurred in Palm Beach County. Independent biologists confirmed that several manatees actually were in better condition when they left Riviera's warm water refuge than when they arrived.
Fostering Loon Nesting The common loon is a water bird found in many parts of North America. Red-eyed with distinctive black and white markings, loons are excellent swimmers, but are unable to walk on land. As a result, loons go ashore only to mate and incubate eggs, building their nests within a few inches of water and preferring sites such as islands or emergent vegetation. Due to the nests' proximity to water, changes in water levels can negatively impact nesting loons. For years, NextEra
Research Partnership Continues to Bear Fruit
In March 2008, NextEra Energy Resources entered into a research partnership with Texas Christian University and Oxford University to provide new, scientifically robust information about sustainably integrating renewable energy into our environment. This partnership unites the extensive operational experience of NextEra Energy Resources with cutting-edge academic research. Researchers have access to our renewable energy fleet and its extensive real-time databases. This treasure trove of data provides a solid foundation for study and analysis. The team is focusing on research in three primary areas: bird, bat and ecological protection; socioeconomic impacts; and carbon minimization and renewable integration. » In the first area, the team is using pre-and postconstruction data to research and assess how wind power can co-exist with bird and bat populations. » Researchers are also studying the direct and indirect impacts of renewable energy development on wages, land use revenues, taxes and employment, as well as community perceptions about wind energy. » And finally, the project is examining how wind and solar power can best be integrated into power systems. During the last three years, research has included rigorous testing of economic development models; interviews with community leaders and landowners in west Texas to gauge
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their perception of wind power; and field research related to bird and bat monitoring and mortality. Some of the results include: » The economic benefit to Texas from the construction and operation of two Texas wind farms is estimated at $1.7 billion over 20 years. » Community support for wind farms grew after plant construction, from 75 to 82 percent. » There have been no adverse impacts on the nesting success of the black-capped vireo and five other species from wind farm operation. The research partnership has also grown to include the University of Minnesota, the United States Geological Survey, Iowa State University, the American Wind and Wildlife Institute, and the University of California at Los Angeles.
During cold weather, manatees congregate at the warm water outflows near FPL power plants. FPL has sponsored well over 100 aerial surveys of manatees since 1977. The January 2010 survey counted 5,076 manatees statewide. 20
The results of this work will be submitted for peer review and publication late in 2011. Operating Fish Passages Working with state and federal agencies, NextEra Energy operates a number of state-of-the art upstream fish passage facilities at our Maine hydroelectric projects. These facilities help fish migrate past dams on their return from the ocean. Protecting Desert Tortoises In California's Mojave Desert, we have installed fencing around one of our solar energy sites to protect the endangered desert tortoise and ensure that it can thrive in its natural habitat. We also include information about the area's endangered wildlife in the orientations we provide to our contractors.
» manufactured adaptors for substations and FPL-patented streetlight shields and critical outage-related items through an on-site fabrication center, generating more than $240,000 in revenues and credits.
» Our environmental auditing section periodically performs environmental compliance and management system audits of all NextEra Energy operations; » Our power generation division assesses its assets annually, giving each facility a grade based on its implementation of environmental management systems and each facility's field conditions. This division also conducts monthly reviews with senior management on environmental performance; » Our nuclear fleet has standardized its environmental program; » Our distribution unit assessed the environmental management systems at its service centers across Florida; and » Our vehicle fleet team conducts annual audits of environmental management systems at its service centers and garages to assess compliance.
Underscoring It All: A Strong Environmental Commitment and Thorough Management Processes
Holding Each Other Accountable
The NextEra Energy "Environmental Commitment" establishes a core environmental policy as part of our company's Code of Business Conduct & Ethics. Each year, officers and managers certify their compliance in writing and ensure that discussion sessions are held with employees. The policy reads: "It has been, and will continue to be, the intent of the Company to conduct its business in an environmentally responsible manner. Accordingly, the Company undertakes to: comply with the spirit and intent, as well as the letter, of environmental laws, regulations and standards; incorporate environmental protection and stewardship as an integral part of the design, construction, operation and maintenance of its facilities; encourage the wise use of energy to minimize the impact on the environment; communicate effectively on environmental issues; and conduct periodic selfevaluations and report performance."
» NextEra Energy was named to the Dow Jones Sustainability Index (DJSI) of the leading companies in North America for corporate sustainability in 2009 and 2010. The DJSI North America selects the top 20 percent of companies in sustainability performance from the 600 largest companies in North America. According to Dow Jones, corporate sustainability leaders achieve long-term shareholder value by "gearing their strategies and management to harness the market's potential for sustainability products and services while successfully reducing and avoiding sustainability costs and risks." » In 2010, FPL was recognized by the Southeastern Electric Exchange with a special Chairman's Award for outstanding performance in constructing the largest photovoltaic power plant in the United States. The DeSoto Next Generation Solar Energy Center was deemed "best of the best" among all entrants in the Exchange's 11 award categories. » For the ninth consecutive year, FPL in 2011 received the Tree Line USA Award. Sponsored by the Arbor Day Foundation in cooperation with the National Association of State Foresters, the award recognizes utilities that demonstrate quality tree care practices, annual worker training and public education programs, such as the foundation's "Right Tree, Right Place" campaign. » In 2011, FPL's Martin Next Generation Solar Energy Center earned NextEra Energy recognition as a finalist in the competition for the Edison Award, presented annually by EEI. The award for "distinguished leadership, innovation and contribution to the advancement of the electric industry for the benefit of all" is EEI's most prestigious award.
Environmental Protection Expenditures
Both FPL and NextEra Energy Resources are subject to environmental laws and regulations. During 2010, FPL spent approximately $181 million on capital additions related to environmental matters. Such expenditures are estimated to be $228 million for 2011 through 2013, including approximately $122 million in 2011. NextEra Energy Resources spent approximately $6 million on environmental-related capital additions in 2010, and estimates it will spend $5 million for 2011 through 2013, including $3 million in 2011.
Part of the orientation given to contractors of NextEra Energy Resources' solar operations in California involves awareness of the desert tortoise and its habitat.
An Integral Part of Our Management Processes
Chairman and CEO Lew Hay regards environmental protection as a critical issue and is directly involved in leading our company's sustainability efforts. He and the NextEra Energy Board of Directors regularly review environmental issues, including the company's emissions risk profile and strategy. Day-to-day tracking of environmental issues and reporting of emissions is the responsibility of the executive vice president and chief strategy, policy and business process improvement officer and the vice president of environmental services. Compliance with the RGGI state regulations is the responsibility of the president and chief operating officer and the executive vice president of power generation. The president and CEO of FPL and the president and CEO of NextEra Energy Resources are also directly involved in company strategy as well as environmental policy and strategy. NextEra Energy links environmental decisions and behaviors to employee performance metrics. Generation efficiency, a component of operations, results in reduced air emissions. All plant operators and general managers have a direct connection to efficiency as part of their performance evaluations. Similarly, account managers responsible for FPL's demand-side management programs have incentives to help both commercial and residential customers achieve energy efficiency improvements. Environmental management systems are utilized by every major department in our company. For example:
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Environmental Awards and Recognition
NextEra Energy's environmental performance attracts positive attention on a national scale.
Minimizing Waste Across Our Operations
FPL has a major recycling program located at our Physical Distribution Center in West Palm Beach, Fla. Working closely with our field operations team, our goal is to minimize waste sent to local landfills. In 2010, we: » refurbished more than $2.2 million in hardware, which was returned to inventory; » decommissioned more than 17,200 units of oil-filled equipment amounting to $3.2 million in revenues (these units also produced 449,500 gallons of mineral oil sold to recyclers at a value of nearly $600,000); » recovered and recycled more than 3 million pounds of scrap wire, resulting in revenues and credits of nearly $1.7 million; » converted 7,411 yards of "clean" wood into mulch for landscaping, for a cost avoidance of more than $50,000; » processed 691,082 pounds of paper and cardboard for recycling using the labor of employees from Palm Beach Habilitation, an organization that provides employment for individuals with mental, emotional and physical disabilities; and
Two Texas Plants Recognized for Environmental Excellence
When it comes to protecting the environment, NextEra Energy Resources' Lamar and Forney Energy Centers in Texas are leaders - and others are seeing it that way, too. These two natural gas plants - totaling 2,792 MW of capacity, or enough to power about 2.6 million homes - have just been accepted into the prestigious Clean Texas program, a voluntary environmental leadership program established to protect air, water and land resources in Texas. "Forney and Lamar are two of only nine organizations in the state of Texas to be awarded the Clean Texas Gold designation," said Gary Kowalczyk, regional plant general manager. "This level of state-recognized environmental award is unprecedented within NextEra Energy Resources." Employees have been involved in a 10-month effort to earn membership in the Clean Texas program, managed by the Texas Commission on Environmental Quality (TCEQ). The program involves an extensive third-party documentation review of the plant's Environmental Management System (EMS), as well as a site verification inspection by a TCEQ team. The plants' EMS provided the strong foundation for the award. "Our EMS is a holistic program that includes environmental policy, objectives, training, tools and procedures," said Luke Garner, NextEra Energy Resources' regional environmental leader. "When taken together, these elements help ensure our industry-leading environmental performance." The award recognizes organizations for creatively resolving environmental challenges and setting pollution prevention goals beyond existing regulatory compliance. Annual pollution prevention measures at both plants included: » Conservation of more than 200 million gallons of water; » Recycling of more than 5 million pounds of non-hazardous waste; » Reduction of nitrogen oxide emissions by more than 100 tons; and » Recycling of more than four tons of oily absorbent waste. As members of the Clean Texas Gold program, the plants now receive several regulatory benefits, such as expedited administrative and technical review of state permits.
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Additional Environmental Metrics
Installed Capacity, by Primary Energy Source and Regulatory Regime
NextEra Energy Primary Energy Source Natural Gas Wind Nuclear Oil Coal Hydro Solar Total Installed Capacity (MW) 22,791 8,298 5,493 4,546 914 359 188 42,588 % of Total 53.5 19.5 12.9 10.7 2.1 0.8 0.4 100
Net Energy Output, by Primary Energy Source and Regulatory Regime
NextEra Energy1 Primary Energy Source Natural Gas Nuclear Wind Coal Oil Hydro Solar Total Net Energy Output (MWh) 90,262,444 43,881,619 19,880,999 6,006,763 4,494,905 1,621,291 364,045 166,512,066 % of Total 54.2 26.4 11.9 3.6 2.7 1.0 0.2 100
Average Generation Efficiency of Thermal Plants, by Energy Source and Regulatory Regime
Florida Power & Light (rate-regulated) Primary Energy Source Gas Heavy Oil Light Oil Coal Weighted Average3 Average Heat Rate1 7,695 10,515 10,721 10,315 8,051 Efficiency 2 44% 32% 32% 33% 42%
Events resulting in a notice of violation, penalty or fine
Power Generation Division Company NextEra Energy Resources Florida Power & Light Nuclear Division Company 2005 0 0 2006 0 0 2007 0 0 2008 0 0 2009 0 0 2010 0 1 NextEra Energy Resources Florida Power & Light 2005 0 0 2006 0 1 2007 0 0 2008 0 0 2009 0 0 2010 0 0
NextEra Energy Resources (competitve) Primary Energy Source Gas Oil Coal Weighted Average 3 Average Heat Rate1 7,714 14,923 14,815 7,798
Efficiency 2 44% 23% 23% 44%
Florida Power & Light (rate-regulated) Primary Energy Source Natural Gas Nuclear Oil Coal Solar Total Installed Capacity (MW) 16,098 3,750 2,939 900 35 23,722 % of Total 67.9 15.8 12.4 3.8 0.1 100
The generation mix of electricity delivered to NextEra Energy customers is different from AverageHeat Rate Efficiency that shown in the table. Certain of the fuel types generate renewable energy attributes that are sold to third-party buyers, and such attributes may be sold separately from the electricity.
Transmission Operations Company 2005 0 0 2006 0 0 2007 0 0 2008 0 2 2009 0 1 2010 0 2 NextEra Energy Resources Florida Power & Light
Florida Power & Light1 (rate-regulated) Primary Energy Source Natural Gas Nuclear Coal Oil 10,060 Net Energy Output (MWh) 66,910,034 7,991 22,845,994 5,887,089 4,336,389 67,262 100,046,768 % of Total 66.9 43 22.8 5.9 4.3 0.1 100 34
Average Heat Rate
GOOD 10,060 7,991 43 34
Distribution Operations Company NextEra Energy Resources Florida Power & Light 2005 0 0 2006 0 0 2007 0 0 2008 0 0 2009 0 0 2010 0 0
NextEra Energy Resources (competitive) Primary Energy Source Wind Gas Nuclear Oil Hydro Solar Coal Total
As of Dec. 31, 2010
Installed Capacity (MW) 8,298 6,693 2,554 796 359 153 14 18,866
% of Total 44 35.5 13.5 4.2 1.9 0.8 0.1 100
Certain power plants owned by FPL generate renewable energy attributes, and those renewable attributes are for the benefit of FPL customers.
NextEra Energy Resources1 (competitive) Primary Energy Source Natural Gas Nuclear Wind Hydro Solar Oil Coal Total
NextEra Energy % of Total 35.1 NextEra 31.6 Energy 29.9 2.4 0.4 0.2 0.2 100
Net Energy Output (MWh) 23,352,411 NextEra Industry 21,035,625 Energy 19,880,999 NOTE: Weighted Average 1,621,291 296,783 158,516 119,674 66,465,298
Heat rate is a measure of a power plant's efficiency in converting fuel to electricity. It is calculated as the number of British Thermal Units (BTU) required to generate a kilowatt-hour (kWh) of electricity. Lower heat rates are associated with more efficient generating units. Efficiency is the ratio of electrical power output to fuel energy input. By megawatt-hour (fossil plants). Weighted average.
For Nuclear Division, our St. Lucie (Fla.) plant experienced a non-radioactive release of approximately 400 pounds of sodium hypochlorite solution on Oct. 7, 2009, resulting from a pipe flush line valve left open for several hours, causing an overflow of the tank. Environmental impact was minimal and there was no equipment damage and no personal injuries. The EPA issued a notice of violation in 2010 and levied an administrative fee against the site for approximately $5,800. For Transmission Operations, the spills that occured during 2008 to 2010 were from sudden and unexpected releases of mineral oil due to oil-filled equipment failures occurring in Miami-Dade County. To assist in preventing future spills, field inspections to assess the condition of equipment have increased.
In-use Inventory of PCBs Contained in Equipment
PCB Type HighLevel NextEra Energy Resources FPL No known PCB units in use. 9 newly identified units (transformers) have been decommissioned. No known PCB units in use. 265 newly identified units (transformers) have been decommissioned.
NOTE: Weighted Average
The generation mix of electricity delivered to NextEra Energy Resources customers is different from that shown in the table. Certain of the fuel types generate renewable energy attributes that are sold to third-party buyers, and such attributes may be sold separately from the electricity.
AverageHeat Rate GOOD 10,060
Note: FPL does not have an identified inventory of 50 ppm PCB oil-filled equipment. Equipment known to contain PCB 50 ppm have been removed or retro-filled. During the course of normal operations and maintenance, oil-filled equipment that is discovered to contain 50 ppm PCB oil is removed from service.
GOOD 7,991 24 43
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A Customer-Focused Business
At the heart of everything we do at NextEra Energy are our valued customers. We begin by providing our utility customers in Florida electric service that is affordable and reliable. Our typical residential and business customer bills are the lowest in Florida and we provide programs that help our customers save even more. We also delivered 99.98 percent reliability in 2010. That's due in part to investments in the smart grid and other state-of-theart technologies that are aimed at detecting problems on the grid and preventing outages before they occur. Though the business environment in which we have been operating over the past couple of years has been very difficult and we and our customers have been impacted in numerous
In 2010, FPL delivered to its customers 99.98 percent reliability and a typical residential bill that was the lowest of all 55 electric companies in Florida.
ways, we've worked hard through it all and have managed to achieve good results. Over the last 10- and 5-year periods, we have generated a total return for shareholders that exceeded that of both a key peer group and the broader market. And we have a long history of healthy dividend payments. Despite challenging market conditions, our 2010 performance was strong, and in both of our principal businesses we have good growth opportunities. We expect to invest approximately $17 billion in capital projects between 2011 and 2014. We could not maintain this growth trajectory without financial strength, which enables us to access capital at attractive rates. Our credit ratings are among the strongest in the industry.
A Customer-Focused Business
Our success has also spurred a wide range of benefits including hundreds of millions of dollars in tax payments to localities and new business opportunities for countless suppliers large and small. Underscoring all of this is our commitment to acting with integrity, managing our risks carefully and working each day to get a little bit better in everything we do. That passion for quality and continuous improvement has been a hallmark of NextEra Energy for decades. Hundreds of our employees are trained in Six Sigma methodologies, our annual James L. Broadhead Award competition draws dozens of teams into a spirited quest for the most innovative ways to solve customer problems cost effectively, and our annual Quality
A Customer-Focused Business
and Safety Expo draws scores of employees to South Florida to demonstrate and celebrate additional team successes. We empathize with those who have been hit hard by the current economic downturn, and continue to offer assistance to them. We work closely with a variety of state and local governments, community groups and nonprofit organizations that provide support, representation and advocacy on behalf of our customers in need. Whether it is providing efficiency education to low-income homeowners or helping needy seniors access support agencies, we take an active role in doing the right thing by our customers.
Low Bills and High Reliability
Most Affordable Electric Service in Florida
FPL's typical residential and business customer bills are the lowest in Florida and below the national average. FPL's typical 1,000 kWh residential customer bill is more than 20 percent below the national average and business customer bills range from 81 to 302 percent below the national average.
FPL's Typical Residential Customer Bill is More Than 20 Percent Below the National Average
surveys. We provided more than $160 million in program rebates and incentives to reduce our customers' upfront costs for efficiency upgrades that, in turn, decrease their monthly electric bills. And we eliminated the need to build 13 mediumsized power plants since 1981, thanks to our customers' participation in our energy-efficiency programs. In 2010 alone, these energy-efficiency savings are equivalent to avoiding nearly 4.5 million MWh of electricity and an associated 2.37 million tons of CO2 emissions. As part of FPL's volunteer OnCall Savings Program, customers receive a credit on their monthly bill for allowing FPL to cycle off select equipment for brief periods of time. Nearly 800,000 customers are enrolled in the program, which has helped support greater efficiency in the electrical system. In 2010, FPL also proposed a demand-side management (DSM) plan to the Florida Public Service Commission (PSC) to meet the utility's significantly higher DSM goals. This proposed plan includes several new initiatives, such as a portfolio with several solar programs, an enhanced portfolio for customers in lower economic brackets, and several new programs to assist FPL's residential and business customers with their energy efficiency needs. In January 2011, the PSC approved the solar portfolio of the proposed DSM plan. The solar portfolio includes rebate programs such as solar water heating and photovoltaic technologies for residential and business customers. The portfolio also includes renewable research projects and accommodates for customers in lower economic brackets as well as a program designed for schools.
FPL's Service Reliability is 32 Percent Better than the National Average
Average minutes without power
In 2010, we invested in reliability and storm preparedness by: » inspecting 141,000 poles for strength and health, reinforcing and replacing them as needed; » trimming trees and clearing vegetation from more than 13,000 miles of power lines;
» performing climbing inspections on 11,000 transmission structures; » upgrading 1,400 transmission structures from wood to concrete or steel; and
As measured by System Average Interruption Duration Index (SAIDI). Industry data is the most current available.
Source: Edison Electric Institute Typical Bills and Average Rates Report for Winter 2011 published May 2011. FPL data is average of July 2010 ($94.36) and January 2011 ($95.01) monthly bills.
Contributing to our low bills is the efficiency of our power plant fleet, which has improved by 17 percent since 2001. The FPL fossil fleet uses 8,051 British Thermal Units of heat from fuel to produce a kilowatt-hour of electricity, or nearly 20 percent less than the fossil industry average of 10,060 in 2009, the latest data available. Since 2001 alone, our investments in making FPL's power plants more efficient have saved our customers an estimated $5 billion in fuel costs.
We achieved these results by executing on our long-term, comprehensive reliability plan. Our plan includes overhead line inspections, line clearing, system upgrades, replacement of underground feeder and lateral cable, priority feeders and vault inspections. We also collect and analyze system performance data, better understanding how to predict and prevent more power outages before they start. Because of our comprehensive reliability initiatives, plans and proactive approach, we have reduced the average frequency of customer outages by more than 30 percent since 2006. In 2010, the average number of outages our customers experienced during the year improved to 1.21, down from 1.43 in 2009. Our average time to restore service to an FPL customer once an interruption occurred was 67.4 minutes in 2010, a performance that ranks second nationally among major utilities, according to the most recent available data (2009).
» upgrading 44 main power lines serving critical and community facilities, including hospitals, 911 communication facilities, police and fire stations. While no utility can ever be 100 percent interruption-proof, we are committed to delivering exceptional value and service to our customers.
Using Technology to Detect Potential Problems
At FPL's Distribution Performance & Diagnostic Center (DPDC), we are applying state-of-the-art technology to increase service reliability and provide value to our customers today and in the future. Investments in new smart grid technologies are aimed at detecting problems on the grid and preventing outages before they occur. We are also applying a similar model to our transmission network in Florida. At the Transmission Performance & Diagnostic Center (TPDC), a remote condition assessment process works with other systems to maximize the value of field instrumentation. This enables early detection and response to system anomalies, improving overall grid reliability and efficiency.
Helping Customers Save Energy and Lower Their Bills
Beyond our efforts to keep our customers' bills low, our efficiency programs can help each and every customer who wants to save energy and money. In 2010, we provided personalized energy efficiency recommendations to 155,000 residential and business customers through our energy
More than 99.98 Percent Service Reliability
At FPL, we delivered to our customers more than 99.98 percent service reliability in 2010. The average amount of time FPL customers were without power was 81.3 minutes, an improvement of more than one minute from our 2009 performance and 32 percent better than the latest national average of 120.0 minutes in 2009.
Megawatts Saved Through Demand-Side Management Programs
Company Southern California Edison Florida Power & Light Pacific Gas & Electric Northern States Power Progress Energy Florida Alabama Power Commonwealth Edison Progress Energy Carolinas Public Service of Colorado Wisconsin Electric Power
Source: U.S. Department of Energy, 2009
Customer Participation in FPL's Demand-Side Management Programs (1981-2010)
MW 4,554 3,871 3,184 2,438 1,689 1,351 1,199 908 857 761 Commercial Efficiency Programs Business Energy Evaluations FPL Business On Call
Residential Efficiency Programs Home Energy Surveys High-efficiency A/C systems Building Envelope FPL Residential On Call
2.89 million 1.34 million 794,311 791,791 494,863 24,604
A/C duct system tests and repairs FPL BuildSmart® homes constructed
154,422 20,345 19,608 15,737 After this test at the FPL Reliability Assurance Center's High Voltage Test Lab, a lightning arrestor was added to this transmission line insulator (at left), solving a problem that had been causing interruptions in service to customers.
A Customer-Focused Business
Upgraded lighting systems High-efficiency A/C systems
Monthly bill for 1,000 KW, 400,000 kWh business customer. Monthly bill for 50,000 KW, 15,000,000 kWh business customer.
A Customer-Focused Business
On a third track, our Reliability Assurance Center (RAC) works with the National Electric Energy Testing Research & Applications Center (NEETRAC) to analyze evidence of field failures in a controlled environment, isolating root causes and implementing comprehensive solutions, thereby minimizing the risk of repeat failures.
Cumulative Smart Meter Deployment at FPL
4,463,698 3,711,696 2,709,026 1,468,099 93,496 2007-'08 190,196 2009 2010 2011* 2012* 2013*
Investing in the Smart Grid
FPL is investing in smart grid technologies, including 4.5 million smart meters, as part of its commitment to building a stronger, smarter, cleaner and more efficient electric infrastructure. The company's smart grid initiative, Energy Smart Florida, will help keep service reliability high and give customers more information than ever before to better manage their energy use and costs. The company is also deploying more than 9,000 additional intelligent devices to enhance the performance of the electric grid. FPL expects to complete smart grid technology deployment in 2013. Other innovative technologies, including in-home energy displays and controllers, are being tested with randomly selected customers in 2011.
Solid Financial Performance
Outperforming Our Peers in Total Shareholder Return
NextEra Energy continues to provide a strong track record of outperformance compared with our peers and the broader market. For the five years ending on Dec. 31, 2010, we delivered a total shareholder return of 48 percent, outpacing both the S&P 500 Index's 12 percent and the S&P Electric Utilities Index's 20 percent. Over the last decade, our performance is even more impressive, with a total return of 107 percent, compared with 15 percent for the S&P 500 Index and 57 percent for the S&P Electric Utilities Index. Dividends and dividend growth remain a core part of the overall value to NextEra Energy shareholders. From 2002 through 2011, we will have achieved a compound annual growth rate in dividends per share of 7.4 percent.
Benefits of a Smart Grid
enhanced reliability » Prevents outages through advanced diagnostics » Identifies outages to re-route power around trouble spots » Restores service faster through advanced grid monitoring More customer control An automated feeder switch receives attention from an FPL employee in Miami, Fla. In 2010, FPL delivered 99.98 percent service reliability to its 4.5 million customers. » Gives customers more information than ever before » Provides customers access to FPL's "energy dashboard" to view energy use by the hour, day or month » Helps customers better manage their energy use and monthly bills Greater convenience » Reads smart meters remotely » Results in fewer estimated or pro-rated bills
Total Shareholder Return
107% 10 Years 57% 5 Years
12% S&P Electric NextEra Utilities Index Energy
Reducing the Impact of Outages on Our Customers
The thousands of smart grid technologies that FPL is installing throughout the electric system are starting to pay off in measurable reliability benefits for customers. One early example occurred on April 17, 2011, when a strong storm caused a tree branch to hit a power line and trip the main feeder breaker much like a circuit breaker in a home trips when it's overloaded. More than 1,800 customers served by the electrical feeder in South Florida were affected. Thanks to a smart grid device known as an automated feeder switch (AFS), the impact for hundreds of those customers was reduced markedly. Following a four-second "momentary" outage, one AFS opened and another one closed, reconfiguring the power line to isolate the disturbance and prevent it from spreading to neighboring areas.
S&P Electric NextEra Utilities Index Energy
"These switches can identify the trouble spot and isolate it, allowing us to reduce the number of customers impacted," said Rick Teigland, FPL technical manager distribution. "While we strive to prevent problems altogether, we're excited that many of the smart grid technologies will help us improve service reliability and reduce the impact of outages on our customers." While the company continues to install smart grid technologies, as of June 2011, there already have been more than 15 successful operations of the new feeder switches. Looking ahead, FPL's smart grid program will benefit customers through fewer outages, smaller outages and faster service restoration as the utility deploys additional AFS and other advanced technologies through 2013.
A Customer-Focused Business
Source: FactSet. 10-year data Dec. 31, 2000 - Dec. 31, 2010; 5-year data Dec. 31, 2005 - Dec. 31, 2010.
Solid 2010 Performance
In 2010, NextEra Energy delivered solid financial results. Net income on a GAAP basis was $1.96 billion, or $4.74 per share, compared with $1.62 billion, or $3.97 per share, in 2009. On an adjusted3 basis, NextEra Energy's 2010 earnings were $1.78 billion, or $4.30 per share a 6.2 percent increase over 2009. One key area that sets our company apart is that we have two great businesses under one roof: FPL and NextEra Energy Resources. FPL, our rate-regulated utility subsidiary, is one of the nation's largest, most efficient and cleanest utilities. In 2010, FPL
An FPL employee tests the accuracy of the company's new smart meters. Through April 2011, FPL has installed 2 million smart meters as part of its Energy Smart Florida initiative to keep service reliability high and help customers better manage their energy use.
A Customer-Focused Business
See Financial Reconciliations on page 61 for reconciliations of adjusted amounts to GAAP amounts.
continued to provide customers with the lowest typical monthly bill in Florida, exceptional reliability and one of the industry's cleanest environmental profiles. Perhaps the most important development of the year was reaching a base rate settlement agreement that will effectively freeze customer base rates as well as provide more predictability for investors through the end of 2012. In 2010, FPL's net income was $945 million, or $2.29 per share, compared with $831 million, or $2.04 per share, in 2009.
Continued Growth Opportunities
We have good growth opportunities at both of our businesses. At FPL, we have more than $11 billion of capital earmarked for deployment through 2014, including $5.8 billion of major generation and advanced metering projects. Our retail rate base is estimated to grow at an approximate 8.5 percent compound annual growth rate from 2009 through 2014.
Maintaining Financial Strength and Discipline
One of the keys to our company's success has been financial strength, and our credit ratings are among the strongest in the industry. Our issuer credit rating is an "A-" at Standard & Poor's and a "Baa1" at Moody's - a result of pursuing projects that are strategic, financeable and enhance shareholder value. Our financial position remains a key competitive advantage, particularly in a challenging economy. The company raised $3.7 billion in debt at attractive rates in 2010, of which $1.2 billion is project debt. We also issued $711 million in equity and equity units to support our strong credit position and enable us to invest wisely in future growth.
In total, NextEra Energy's 2010 property taxes were approximately $400 million nationwide. These funds are paid to local communities and typically used by governments for education, with some funding for local government services. When it comes to suppliers, NextEra Energy sees the value of a diverse business environment and promotes partnerships with qualified small, minority- and women-owned businesses. From Oct. 1, 2009, through Sept. 30, 2010, small firms in Florida benefited from more than $114 million in contracts, minority-owned businesses earned contracts valued at nearly $44 million, and women-owned businesses $38 million. In 2011, FPL was given honorable mention by Vetrepreneur magazine, the voice of the National Veteran-Owned Business Association (NaVOBA), in a ranking of Best 10 Corporations for Veteran-Owned Businesses. And while we have no specific policy requiring the use of local suppliers, certain major construction projects do have policies to seek local resources and, as a practical matter, many services are provided most economically from local sources.
At NextEra Energy Resources, we plan to invest in new generation opportunities where risk and return are aligned. The main drivers of FPL's full-year 2010 earnings were cost This includes between NEE Installed Capacity Growth$2.3 billion and $2.7 billion in identified recovery on the company's investment in West County Energy solar generation projects that have long-term contracts Center Units 1 & 2, higher electricity usage due to weather, already in place, and we expect to grow the wind business by and an increase in the company's base rates. These were a total of 1,400 to 2,000 MW in 2011 and 2012. offset by higher expenses for operations and maintenance NextEra Energy Total Installed Capacity (O&M) and depreciation, as well as a reduction in the Megawatts company's Allowance for Funds Used During Construction 42,678 42,5881 (AFUDC). Retail sales of electricity for full-year 2010 rose by 39,015 37,678 2.2 percent over the prior year, to 105.0 million MWh from 34,324 32,830 102.8 million MWh. And though FPL had approximately 30,097 30,460 28,000 more customers during the fourth quarter of 2010 than 24,891 during the comparable period of 2009, that growth is much lower than historical levels. The nation's leading producer of renewable energy from the wind and the sun, our NextEra Energy Resources subsidiary has a growing portfolio of facilities with 18,866 MW of generating capacity as of Dec. 31, 2010. Approximately 96 percent of its electricity is derived from clean or renewable sources natural gas, nuclear, wind, hydro and solar. Primarily a wholesale power generator, NextEra Energy Resources operates power plants and sells the output to utilities, retail electricity providers, power cooperatives, municipal electric providers and large industrial companies.
Total Installed Capacity 42,588 NextEra Megawatts Energy Resources reported net income on a GAAP
NextEra Energy Key Success Factors
Customer Focus Operational Excellence Strategic Focus Financial Strength Listen to customers, understand their concerns, anticipate their needs and provide them with outstanding value Leverage significant scale, scope and skills to derive maximum value from current assets Invest in clean-energy generation and related opportunities Maintain a strong balance sheet and credit profile to support significant capital investment plans Only pursue opportunities that are strategic, financeable and enhance shareholder value Sustain a high-performing culture by fostering a team environment and encouraging continuous improvement
Integrity and Ethics Are Core to Who We Are
At NextEra Energy, our three core values are: We are committed to excellence, we do the right thing, and we treat people with respect. Integrity and unquestioned ethics are at the very foundation of who we are, what we do, and how we do it. We expect all representatives of our company and our subsidiaries to act with the highest standards of personal and professional integrity, and to comply with all applicable laws, regulations and company policies. We put these values into action in numerous ways. A Code of Business Conduct & Ethics applies to all representatives of NextEra Energy, including directors, officers and employees, temporary employees and all others who work with or represent us, directly or indirectly. Senior executive and financial leaders are also subject to a separate Code of Ethics for Senior Executive and Financial Officers. Both documents are available at www.NextEraEnergy.com, under Our Company, then Governance. Every year our company's internal audit and compliance department compiles a list of key personnel, including employees involved in procurement, and sends a mandatory electronic questionnaire certifying understanding and adherence to our Code of Business Conduct & Ethics. In 2011, all non-bargaining employees are required to complete a course to help ensure consistent understanding of and compliance with the Code of Business Conduct & Ethics. Many of today's most challenging ethical issues involve how companies and their employees interact with governments and elected officials. At NextEra Energy, we want all of our interactions with governments to be beyond reproach. Our Code of Business Conduct & Ethics confirms that, in accordance with the Foreign Corrupt Practices Act, employees of NextEra Energy are prohibited from offering incentives to any
Financial Discipline Employee Engagement
The net decrease of 90 MW from 2009 to 2010 was the result primarily of the demolition of the 800-MW Cape Canaveral power plant in Florida for modernization/expansion to 1,200 MW by 2013, and the sale of a 44-MW asset in California, offset primarily by the addition of new wind projects across the United States and in Canada.
Growth at NextEra Energy
Cumulative Capital Deployed In billions of dollars $34.7
basis of $980 million, or $2.37 per share in 2010, compared with $759 million, or $1.86 per share, in 2009. On an adjusted4 24,341 basis, Energy Resources' earnings were $800 million, or $1.93 per share, compared with $792 million, or $1.94 per share, in the year-ago period. The main drivers of NextEra Energy Resources' full-year 2010 earnings were the addition of new wind projects, 2002 '03 '04 '05 '06 '07 '08 '09 2010 higher production from the company's nuclear plants and existing wind projects, and gains from the company's gas infrastructure business. These were offset by higher interest $4.30 Adjusted EPS costs (primarily due to the growth of the business), lower In dollars earnings from the company's proprietary power and gas trading, and write-offs associated with the future repowering $2.41 of two wind projects in California. And amid challenging market conditions, NextEra Energy Resources secured 1,238 MW of new power purchase agreements in 2010, including contracts for 553 MW expected to be placed in service in 2011 and 2012.
2002 '03 '04 '05 '06 '07 '08 '09 2010
Positive Ripple Effects with Communities and Suppliers
Being a large and successful company enables us to benefit our communities in a variety of ways. These benefits include tax payments to localities, direct jobs, capital expenditures, and opportunities for countless suppliers large and small.
$3.4 2002 '03 '04 '05 '06 '07 '08 '09 2010
Dividends Per Share 1 In dollars
In Florida, NextEra Energy was the No. 1 taxpayer in 2010 with more than $1 billion in taxes paid. We were also a leading investor with $2.5 billion in spending on capital projects. We employed more than 11,000 men and women in challenging jobs and served as a strong economic engine for the state with our $1.1 billion supply chain. In property taxes alone, NextEra Energy paid $289 million to Florida in 2010. Property taxes are administered at the county level with all funds going directly into the communities the company serves. A breakdown of 2010 payments is as follows: » 45.4 percent, or $131 million, went to local government in the form of support for county fire, police and other government services;
» 40.2 percent, or $116 million, went directly to schools; » 11.3 percent, or $33 million, went to city governments; and » 3.1 percent, or $9 million, went to other organizations such as water management districts.
A Customer-Focused Business
Annualized split-adjusted quarterly dividend; dividend declarations are subject to the discretion of the board of directors of NextEra Energy. See Financial Reconciliations on page 61 for reconciliation of adjusted amounts to GAAP amounts.
A Customer-Focused Business
foreign or domestic government official or agent in the hopes of influencing that individual. Moreover, company funds, services or labor must not be given, directly or indirectly, to anyone in an improper effort to obtain or retain business for our company or to obtain any special or unusual treatment in connection with a business transaction. Employees of NextEra Energy must discuss in advance with their managers any expenditures and transactions of any kind involving foreign governmental officials, including social meetings. Any such expenditure or transaction must be accurately recorded in our company's books and records. In addition, under the Honest Leadership and Open Government Act of 2007, our company and our employees and lobbyists are prohibited from providing gifts, food, beverages and travel to members of Congress, their staffs and employees. The laws of many states contain similar restrictions with respect to state legislators, their staffs and employees. Generally, NextEra Energy PAC, the company's political action committee, which is funded by personal contributions made by employees, is the only permissible source for funding federal political contributions on matters important to our company. The NextEra Energy Supplier Code of Conduct also prohibits those doing business with our company from offering inappropriate inducements, and mandates that they report any solicitation for favors. The Supplier Code of Conduct is available online at http://www.FPL.com/doingbusiness/isc/pdf/supplier_ code.pdf. Its tenets are made a part of legal contracts once a supplier is retained. The contract terms require that suppliers agree to the ethical behavior we expect, including the prohibition on any improper gifts and entertainment and a requirement to report any improper request from any of our employees. If these terms are violated, the supplier risks loss of its business relationship with us. The company has made available to employees many ways to report any actual or suspected violations of applicable laws or regulations, any actual or suspected fraud and any other violation or suspected violation of the Code of Business Conduct & Ethics. One option is via a 24-hour hotline administered by a leading third-party global provider of employee hotline services. The company prohibits any retaliatory action against any individual for raising in good faith concerns or questions regarding compliance with laws, regulations, our Code of Business Conduct & Ethics or other ethics matters.
chief financial officer, senior vice president of internal audit & compliance, and general counsel. On a quarterly basis, our company's Corporate Risk Management Committee, comprising a broad range of officers and managers, meets to discuss our company's risks and the appropriateness of any mitigation, and to reach consensus on the top risks our company faces. The assistant controller serves as the committee chair and meets with our Risk Lead Team (composed of our chief executive officer, chief operating officer, chief financial officer, chief compliance officer and general counsel) on a semi-annual basis to discuss the findings of the Corporate Risk Management Committee. Also on a semi-annual basis, our Corporate Risk Management Committee chair provides the Board of Directors' Audit Committee with a high-level assessment of company risks. For example, to manage risks associated with evolving environmental standards, we evaluate those risks and establish a plan to manage or mitigate them once they have been identified. Our environmental issue management team, including in-house subject-matter experts together with legislative and regulatory affairs staff, contacts the potentially affected facility or business unit to include its expertise in the development of the plan. Input on legislative or regulatory initiatives with the potential to significantly affect our businesses is provided by management up to, and including, executive and board levels. Actions may include: » Modeling cost impacts of proposed environmental regulations into existing and new electric generating facilities; » Modeling dispatch effects related to installation of new control equipment or regulatory standards that affect operational abilities; » Performing regulatory analyses to evaluate the impacts of different regulatory options on various technologies, companies, facilities and market regions to identify appropriate advocacy strategies; » Participating in and tracking development of new technologies that may affect the availability of CO2 allowances, the capture and storage of carbon or the efficiency of future generation; » Providing written comments on draft regulations and guidance documents; » Meeting with legislators or regulators; » Working with government agencies, industry groups, non-governmental organizations, academia and the scientific community; and » Convening internal cross-functional teams to proactively identify and manage issues that, although not imminently affecting operations, could potentially become either risks or opportunities in the future. To us, good risk management means understanding all the things that can go wrong and their potential impact on our business, then making sensible choices about them. It also means understanding all the things that can go right - better than our base expectations - and making sensible trade-offs. A good risk management culture is one that understands the uncertainties that can affect our results and that takes
A Customer-Focused Business
appropriate actions in response to that knowledge. Our aim is to be prudent and in control, not to avoid taking risks. For a more complete list of risks related to our business, please refer to pages 19 to 28 of NextEra Energy's Form 10-K for the fiscal year ended Dec. 31, 2010.
work groups from across the company each of which has innovated and deployed methods to improve quality, service or operations to compete for special recognition. In 2011, the Maine Hydro Forward Reserve Team captured the Broadhead Award. The team used seven years of hydrological data, a new statistical model and other Six Sigma tools and processes to increase ancillary revenues by more than $1.2 million per year. The team also developed a threestep risk-mitigation process. The 10 projects that competed for the 2011 Broadhead Award were projected to represent a net present value of more than $27 million over the next five years.
A Culture of Quality and Continuous Improvement
A passion for quality, continuous improvement and innovation has been a hallmark of NextEra Energy for decades and continues to play a major role in our ability to serve our customers effectively and efficiently. In 1989, we became the first U.S. company to earn Japan's prestigious Deming Award for quality, and that legacy lives on today in our company on a variety of fronts. Most recently, Fortune magazine, as part of its "World's Most Admired Companies" analysis in 2010, ranked NextEra Energy as one of the world's 10 most innovative companies, joining Apple, Google, Nike and others.
Quality and Safety Expo
Although the theme was "quality and safety," the mood clearly was light at the 17th Annual Quality & Safety Expo, held April 15, 2011, in the company's Juno Beach, Fla., office atrium. The Expo, an annual showcase of team projects, is yet another venue for employees to share ideas on how they are serving customers in new ways and keeping safety top of mind. Thousands of employees visited nearly 70 booths, featuring electric vehicles, spinning wheels, interactive quizzes and a list of giveaway gifts and prizes. Outside, employees experienced Fleet Services' vehicle technology, a jet engine inspection and a Clipper Windpower gearbox. "This year's Expo was an amazing display of our employees' dedication when it comes to demonstrating quality and safety," said Teri Ivaniszyn, director of corporate operational excellence. "The teams were impressive not only in their creativity, but also in their enthusiasm and energy." NextEra Energy Chairman and CEO Lew Hay opened the Expo with recognition of the Broadhead Award competitors and winner, and welcoming words to several visiting NextEra Energy customers. Whether measured by Six Sigma competency, participation in the Broadhead Award competition, or involvement in the annual Quality and Safety Expo, the spirit of quality and continuous improvement permeates NextEra Energy's culture across all business units and all geographic regions.
Six Sigma Program
First introduced at NextEra Energy in 2004, the Six Sigma program is a proven approach to help improve business performance. Since then, more than 17,500 employees have been trained in quality courses offered through NextEra University's School of Operational Excellence, including 19 Master Black Belts, 160 Black Belts and 464 Green Belts. As of Feb. 28, 2011, 294 employees are in Green Belt training, 35 employees are in Black Belt training and three employees are in the process of earning their Master Black Belts. Six Sigma trainees are making tremendous contributions to the company's bottom line. As part of a Green Belt project in 2010, one NextEra Energy employee discovered 11 out of the 52 wind turbines at the Cabazon Wind Energy Center in California could be more efficient. Due to his research, improvements there have increased power production at the site, and revenue grew 7 percent. More importantly, net income from project contributions will increase by more than 120 percent. Thanks to the company's Corporate Operational Excellence (COE) team, successful process improvements like those at the Cabazon Wind Energy Center happen all the time. COE is available to the entire company for a wide range of advanced analytical and process-improvement services. Each team member has earned, or is in the process of earning, a Black Belt or Master Black Belt certification. As part of a recent project, COE was able to help the wind fleet reduce its forcedoutage rate by 42 percent a measure that far exceeded the team's stretch goal.
We Manage Risk Carefully and Thoroughly
In addition to doing the right thing, we believe that being successful requires careful and thorough attention to risk in its many forms. Being disciplined in managing risk plays a major role in our financial success. At NextEra Energy, our chief executive officer also serves as our chief risk officer. In addition, many analytical and monitoring functions are conducted under the direction of our
James L. Broadhead Award
From this foundation, the company continues to demonstrate a strong commitment to quality through the annual James L. Broadhead Award competition, named for the longtime NextEra Energy chairman and chief executive officer whose commitment to quality remains an inspiration to employees. The Broadhead Award brings together business units and
A Customer-Focused Business
The company's annual Quality and Safety Expo draws hundreds of employees to Florida to share best practices on innovative ways to serve customers.
Innovation Takes Many Forms
Over the past decade, we've leveraged our knowledge developing, building and operating wind farms into our current position as the leading wind energy owner in the United States. We were opportunistic in entering the solar energy business, have since grown our capabilities and today are the largest U.S. operator of solar power. Around here we call it our "toe-in-the-water" approach one that's also served us well as we've entered the transmission and gas businesses over the last few years. Most recently, we have taken steps to capitalize on the deep intellectual property that our team possesses and are slowly growing our patent culture. Whether measured by Six Sigma competency, participation in our Broadhead Award competition, involvement in our annual Quality and Safety Expo or using our core competencies to grow new lines of businesses, the spirit of quality, continuous improvement and innovation permeates NextEra Energy's culture across all business units and all geographic regions.
FPL Care to Share®
This program provides emergency assistance to customers who are in crisis and are unable to pay their electric bills. In 2010, for the fifth consecutive year, NextEra Energy contributed $1 million to this effort. More than 1,700 employees pledged nearly $90,000 through payroll deductions, and customers donated almost $350,000. Every dollar donated is given directly to those in need through partner agencies such as The Salvation Army, and no taxdeductible donations are used for fundraising or administrative costs. Since 1994, Care to Share has raised more than $14.3 million and helped approximately 63,000 families in need.
Helping Local Governments Provide Emergency Services
In 2010, NextEra Energy Resources purchased a fire truck from the Muenster, Texas, Fire Department, which serves the community that is home to our Wolf Ridge Wind Farm, and donated the fire truck to the Montezuma, Kan., Fire Department. The territory for this fire department includes the community that is home to our Gray County Wind Energy Center. This provided Muenster with much-needed funds, while emergency officials in Montezuma got a quality used vehicle.
NextEra Energy also provides pro-bono legal assistance to families facing home foreclosure. The first pro-bono clinic was held at the Legal Aid offices in downtown West Palm Beach in January 2010. Since then, on one Tuesday night every month, 10 of NextEra Energy's lawyers volunteer to staff the foreclosure clinic. In total, over 250 families have been helped since NextEra partnered with Legal Aid. Even more impressive is that there has been greater than 80 percent participation by NextEra lawyers with many individuals attending the monthly clinic more than the suggested two times per year. These efforts do not go unnoticed. In March 2010, the law department received the first-ever Corporate Pro Bono Recognition Award given by the Legal Aid Society of Palm Beach County for the groundbreaking foreclosure program, and was recently mentioned in Corporate Counsel magazine.
Assisting Elderly Customers
FPL works to maximize funding to maintain services to elderly customers through sponsorships of various groups, including Meals on Wheels, a variety of statewide organizations, and employee initiatives.
FPL's AWARE Program
Through observation and reporting as part of our AWARE program, FPL employees refer needy seniors and others to various social service organizations. In 2010, our employee team made more than 50 reports, and many elderly men and women benefited from assistance and services they might not otherwise have received.
Supporting Low-Income Families and Other Customers in Need
Due to our nation's current economic difficulties, the number of our customers in need remains high. We believe it is imperative to engage partners, maximize resources, streamline processes and strive to provide the best possible services and assistance to those who need it most.
FPL is proud to partner with local communities to help customers learn about energy efficiency. This Home Energy Makeover was completed in November 2010 in Bradenton, Fla.
Non-Profit Energy Makeovers
A similar outreach program, which helps non-profit organizations save thousands of dollars by making their facilities more energy efficient, benefited St. Martha's Early Learning Center in Sarasota, the Cooperative Feeding Program in Fort Lauderdale, and Mustard Seed Ministries in Port St. Lucie, in 2010.
Florida Council on Aging
In 2010, for the second straight year, FPL provided a grant to a longtime partner, the Florida Council on Aging (FCOA), to support advocacy efforts on behalf of seniors and the community aging programs from which they benefit.
FPL's ASSIST Program
One tangible example is FPL's ASSIST Program, encompassing a vast network of more than 850 partner organizations including social service, governmental and nonprofit organizations that serve low-income, elderly and specialneeds customers. Through a web portal, agencies can quickly access customer information needed for the qualification process, and now have the ability to enter payment assistance commitments without an FPL representative. Here are other tangible examples of how we are supporting customers in need:
Educating Consumers About Efficiency
In addition to completing Home Energy Makeovers, FPL also offered Home Energy Surveys to customers as they qualified for residential payment assistance, sponsored numerous energy efficiency workshops for local groups and, in partnership with the Florida Energy Affordability Coalition (FLEAC), developed the "Ways to Save Energy and Money" video with no-cost and low-cost efficiency tips. In 2010, the video and tips brochure was distributed to more than 175 partner organizations across the state.
Assisting Special Needs Customers
There are several methods by which FPL employees address language, cultural, low-literacy and disability-related needs, ensuring all customers have access to the electricity-related services they need. There are no known inhabited areas within FPL's service territory where the utility does not provide service.
Home Energy Makeovers
Volunteers from FPL work with local governments, community organizations, conservation contractors and others to provide lowincome homeowners with free Home Energy Makeovers, which can help homeowners save up to 25 percent annually on their utility bills. Through this collaborative effort, free energy-efficiency upgrades have been made to the homes of more than 550 lowincome families through 2010 - more than 150 in 2010 alone. In June 2010, FPL partnered with Florida City in Miami-Dade County to deliver 50 Home Energy Makeovers in one day. "By working with FPL and other organizations, we're helping provide the residents of our growing community with access to tools and information that can save them money and have a positive impact on their daily lives," said Florida City Mayor Otis T. Wallace, who participated in several of the Home Energy Makeovers that day.
Helping Customers Learn About Available Financial Assistance
To ensure customers know about financial help that may be available to them, FPL developed and implemented a referral process, providing phone and email outreach to potentially eligible customers, advising them of agency contact information to apply for payment assistance. Hundreds of thousands of customers are helped annually.
Addressing Language and Literacy Barriers
The content on FPL's website (www.FPL.com), as well as informational brochures and customer letters that pertain to safety, efficiency, savings, payment options and hurricane information, are available to customers in both English and Spanish. Additionally, nearly 35 percent of our Customer Care Center staff is bilingual, speaking Spanish and English, while nearly 2 percent can handle inquiries from our Creolespeaking customers. There are also process scripts available in Spanish to assist our bilingual agents. Our Care Center's Integrated Voice Response Unit provides account information to customers in both English and Spanish. For the hearing impaired, FPL uses the 711-relay system.
The Amarillo (Texas) Police Department has received this police dog courtesy of NextEra Energy Resources. The dog was raised in Europe and trained in Louisiana, and will support the Amarillo community for seven years. The dog will be named through a contest at local elementary schools.
A Customer-Focused Business
Energy Affordability Coalitions
We are continuing our partnership with FLEAC, which we helped initiate in 2006 to advance initiatives that maximize payment assistance for eligible customers. We also work with utility partners outside Florida through the Coalition for Affordable Energy for All (CAEA), which reaches out to members of Congress advocating for low-income home energy assistance.
A Customer-Focused Business
Medically Essential Service Program (MESP)
For customers requiring electricity for special ongoing medical needs, FPL provides unique support, including referrals to social service agencies that provide financial assistance,
bill extensions for those customers who qualify, special notification prior to disconnection of service for non-payment, and protection from being billed for deposit adjustments. Supplementing MESP is the Easing Assistance with Storm Emergencies (EASE) program, which provides pre- and post-storm support for MESP customers, including kits with emergency staples.
$500,000 in steam plant building repair. For NASA's Kennedy Space Center, FPLS implemented innovative energy reduction solutions worth $1 million in annual cost savings. Creating better, more sustainable learning environments: FPLS and FPLES have helped school systems across Florida save more than $31 million in operating costs through the reduction of electricity and water consumption. Following an advanced energy audit in the Manatee County School District, we proposed and implemented a comprehensive lighting retrofit at eight elementary schools, saving hundreds of thousands of dollars in energy usage. While our initial feasibility study guaranteed the schools annual savings of more than $100,000, they have already realized more than $500,000 since 2007. In an effort to trim annual operating expenses and be a better environmental steward, the Lee County School Board engaged FPLS to design, build and monitor savings for a comprehensive slate of energy and water conservation measures at 38 area schools, work that is estimated to help save more than $10 million during the 13year contract period. Helping correctional facilities fund capital improvements through efficiency: Over the past decade, FPLS' and FPLES' solutions have yielded savings of $16 million for correctional facilities and local governments, reducing electricity consumption by 64,000 MWh and water consumption by more than 1.1 billion gallons. For example, the Florida Department of Corrections (DOC) entered into a series of performance contracts with FPLS in 2005 to lower energy costs, upgrade old equipment and reduce maintenance time and expenses at 19 facilities, yielding more than $5.4 million in savings over the past six years. By the end of the contract in 2026, it's estimated the DOC will save more than $55 million. Similarly, in Gainesville, Fla., and surrounding Alachua County, government officials turned to FPLES to help achieve their goal of controlling costs and improving operations within the county's jail building. We determined we could help the county reduce water use by more than 17 million gallons per year, saving $165,000 on annual utility bills and eliminating the need for a $300,000 upgrade to the sewer system. By the time current FPLS and FPLES contracts are complete, the last in 2026, more than 765,000 tons of CO2, 1,075 tons of NOx, 1,700 tons of SO2, and 1.3 million MWh of power will have been avoided equivalent to the annual emissions of 147,779 cars. The avoided 4 billion gallons of water would be enough to meet the average annual residential water need of more than 120,000 people. These savings will continue growing as FPLS and FPLES develop additional projects with new and existing customers.
Customer and Business Awards and Recognition
NextEra Energy's efforts to provide exceptional value to its customers and its history of solid financial performance have attracted positive attention from a number of national organizations. » In Fortune magazine's 2011 list of "World's Most Admired Companies," NextEra Energy tied for first place as the most admired company in the utility industry. This is the fifth consecutive year NextEra has ranked in the No. 1 spot, an industry record. » In 2010, NextEra Energy was also ranked by Fortune as one of the top 10 companies worldwide for innovation, joining Apple, Google, Nike and others. » The nation's leading chain and multi-site businesses recognized FPL with the Edison Electric Institute's 2011 National Key Accounts Award for Outstanding Customer Service. The award is given to companies that provide service to national account organizations above and beyond normal expectations by truly recognizing and responding to the account's "uniqueness." More than 700 companies voted in the awards program, including national brands such as Best Buy, HealthSouth, Staples, Starwood Hotels, The Limited and Wal-Mart. » On corporate governance, NextEra Energy was one of only 43 companies out of more than 4,200 evaluated to receive a perfect score of 10.0 from Governance Metrics International. The ratings are based on six categories: board accountability, financial disclosure and internal controls, shareholder rights, remuneration, market for control and corporate behavior. » Vetrepreneur magazine, the voice of the National VeteranOwned Business Association (NaVOBA), gave FPL honorable mention in its compilation of the 2011 Best 10 Corporations for Veteran-Owned Businesses. » The Southern Florida Minority Supplier Development
Expanding FPL Services and FPL Energy Services to Be the Most Trusted Providers of Sustainable Energy-Related Solutions
Mainly through two subsidiaries, FPL Services, LLC (FPLS), and FPL Energy Services, Inc. (FPLES), NextEra Energy has spent the past two decades providing energy and water conservation solutions to large public and private institutions. From 1997 to 2011, FPLS and FPLES helped these institutions save more than $90 million, reducing electricity consumption by more than 807,000 MWh and water consumption by more than 1.8 billion gallons enough energy to power almost 67,250 homes for one year and enough water to fill 3,000 Olympic-sized swimming pools. Additionally, the reduced energy consumption avoided emissions equivalent to the annual use of more than 85,000 cars. The following projects demonstrate some of the tangible results of our initiatives: Improvements to Miami International Airport: In June 2010, FPLS entered the second phase of a comprehensive, energyefficiency program at the Miami International Airport, which serves nearly 34 million passengers annually. By retrofitting 40,000 lighting fixtures, adding occupancy sensors and installing 10 new high-efficiency motors and chilled-water pumps, the airport's annual carbon dioxide emissions are expected to be reduced by 5,035 metric tons over the next 15 years equivalent to the annual GHG emissions from more than 960 passenger vehicles. In addition, the airport's more than 30 million annual passengers and its 35,000 employees will enjoy improved infrastructure reliability, reduced equipment failures and the enhanced safety and aesthetics of improved lighting levels. "Without a doubt, our long-term partnership with FPL Services enables us to aggressively reduce our energy footprint, conserve valuable resources and manage the costs of running a major international airport more effectively," said Miami-Dade Aviation Department Aviation Director José Abreu. Helping government facilities meet energy goals: With a history of government partnerships, FPLS and FPLES have helped government facilities save 196 million gallons of water and more than $35 million through reduced electricity consumption in the past nine years. For Patrick Air Force Base, near Cape Canaveral, Fla., we provided upgrades and modifications projected to yield more than $14 million in energy savings by the year 2027, helping the base avoid
Council (SFMSDC) awarded FPL with the 2010 "Local Corporation of the Year Award," the highest award presented to a current local corporate member of the SFMSDC. This award recognizes a corporation for consistently demonstrating a commitment to minority purchasing, as well as technical and managerial assistance and sponsorship of minority programs. » In 2010, FPL was honored to receive the Edison Electric Institute's Supplier Diversity Vendor Opportunity Award. This award was significant in that diverse suppliers voted for the EEI member utility company or individual that in their opinion has done the most to provide opportunities for small and diverse suppliers. » In 2011, EnergyBiz magazine named NextEra Energy Chairman and CEO Lew Hay "CEO of the Year," recognizing the value proposition FPL offers customers in the form of low bills, high reliability and a clean power generating fleet. » Ernst & Young presented Chairman and CEO Lew Hay its "Florida Lifetime Achievement Award" in June 2010 at its Entrepreneur of the Year ceremony. The award is given to "men and women who put everything on the line in order to translate an idea into a viable, sustainable enterprise." Lew was recognized for helping transform NextEra Energy into one of the largest, cleanest and most profitable electric power companies in the nation. "I want to thank our 15,000 employees for making these achievements possible," he said.
World's Most Admired Companies for Innovation 2010
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Source: Fortune magazine
proctor & Gamble McDonald's intel ups nextera energy
In 2011, the Maine Hydro Forward Reserve Team captured the James L. Broadhead Award, NextEra Energy's highest honor given to employee teams for quality improvement efforts. Honoring the team were Jim Broadhead (left center), Chairman and CEO Lew Hay (far left) and Executive Vice President Chris Bennett (far right).
A Customer-Focused Business A Customer-Focused Business
A Commitment to Our Communities and Our Employees
At NextEra Energy, we take great pride in serving the communities in which we live and work. Our strongest link to the community is in our own employees, who donate thousands of hours annually to a wide range of projects that are close to their own hearts. Our people also contribute generously to company-sponsored events like United Way and the Susan G. Komen Race for the Cure. We also support education at all levels. In the pages that follow, you'll read about how we are encouraging our young people to study science, technology, engineering and math with a solar-education program at local grade schools. We're also taking education programs on the road, mentoring high school students, training teachers, sponsoring scholarships and equipping schools with computers and related items. At the college and university levels, we have a variety of partnership programs under way with colleges and universities to prepare students for careers in the energy field. Being a good corporate citizen also means being open and accessible. Community outreach is important to us. We listen and respond to community groups and local leaders who may have questions or concerns about our company's current or
A Commitment to Our Communities and Our Employees
In 2010, FPL donated 5-kilowatt solar installations at six schools and two non-profit organizations to give students and others a hands-on tool to learn how solar power works.
planned projects, and we continue to improve our proactive communications as well. We provide guest speakers in the community, we employ the latest in technology to interact with interested parties, and we are committed to making available to our customers a wide range of ideas and solutions to help them better manage their energy usage.
A Commitment to Our Communities and Our Employees
Volunteering Our Time
NextEra Energy employees volunteer tens of thousands of hours every year to support the communities where they live and work.
Susan G. Komen Race for the Cure
For more than a decade, FPL has served as the local presenting sponsor for the Susan G. Komen Race for the Cure in West Palm Beach, Fla. The proceeds of this event go toward breast cancer awareness, treatment and research. "Team FPL" traditionally has been the largest team at the West Palm Beach event. In 2010 and 2011, more than 1,500 NextEra Energy employees united to raise nearly $150,000 to battle breast cancer and support race-day activities in West Palm Beach, Orlando, Fort Myers and Miami.
NextEra Energy Charitable Giving - 2010
Civic & Community 34% Education 18%
Power to Care Week
Our third annual Power to Care event took place in May 2011 with nearly 650 employees and their families participating in more than 21 community volunteer projects. Top company executives worked alongside the volunteers as they helped clean up beaches, landscape gardens, spruce up parks, paint homes and more.
Health & Human Services 42%
Next Generation Solar Education Program: FPL piloted the Next Generation Solar Education Program in 2009 with 11 teachers throughout Florida. Expanding the program in 2010, FPL trained 140 teachers, and held three workshops at FPL's new commercial solar plants, introducing educators to FPL's achievements in diversifying Florida's energy sources. Due to substantial interest in the schools, grant applications by teachers increased 50 percent from 2009 to 2010, and the Next Generation Solar Education Program has an additional 100 teachers on the waiting list. In 2010 FPL donated 5-kilowatt solar installations at six schools and two non-profit organizations to give students a handson tool to learn how solar power works. Another 97 schools received grants ranging from $500 to $1,000 to help teachers introduce lessons on renewable energy in the classroom. School Shows and Programs: Our employees visit schools and classrooms across the country to involve students in new learning experiences. One example is the "Kid Wind" program, which educates teachers on wind energy so they can help their students better understand the value of renewable energy resources. Additionally, FPL puts "Captain Conservation" and "Professor Whys" on the road for more than 350 shows in 34 Florida counties annually, serving approximately 100,000 students. NextEra Energy also held five "Professor Whys" shows in two other states to help middle school students understand both how energy is created and why it's important. Easy-to-Access Educational Resources: Situated near three of NextEra Energy's nuclear power plants, energy education centers offer the public opportunities to learn about electricity, energy and, more specifically, nuclear energy. Along with inspiring and educating the public, these facilities demystify nuclear energy and the plants that produce it by opening lines of communication to build trust in the communities they serve. Located near our St. Lucie nuclear power plant on Florida's South Hutchinson Island, FPL Energy Encounter offers interactive exhibits and programs that enable visitors to take an inside look into a "nuclear reactor" and learn how electricity reaches their homes. Teacher workshops and nuclear science merit badges for Boy Scouts are offered annually. Similarly, the Science & Nature Center at our Seabrook Station in New Hampshire is a well-known destination for groups interested in learning about nuclear energy and the thriving ecosystem that surrounds the facility. At the center, the Owascoag Trail leads visitors along the edge of a salt march estuary. At our Point Beach nuclear plant in Wisconsin, presentations cover a variety of energy-related topics, a Super Science Bowl is held each winter for students and teachers, and a workshop is conducted each fall for Boy Scouts and their leaders. An Energy Education Website Just for Students: Our kidfriendly website, Clean Energy for Kids (www.NextEraEnergy. apogee.net/kids/) provides young people with games, activities, quizzes, experiments and general information on subjects such as energy conservation, global warming and renewable energies of the future. The website also has a special "Teacher Feature" as well as links to other popular websites.
Dollars for Doers
This program provides $250 to an organization for which an employee has volunteered 40 hours of service. Employees and their families dedicated more than 20,000 hours of their time in 2010, resulting in more than 100 Dollars for Doers grants that are making a difference in their communities today.
Total does not add to 100% due to rounding
Environment 4% Arts & Culture 1% Total: $4.6 Million
Since 2000, NextEra Energy and its employees have donated more than $33 million and countless hours of volunteer work to United Way to improve lives and build stronger communities.
Employee Volunteerism at NextEra Energy
Supporting Education at All Levels
The success of NextEra Energy and the communities in which we operate depends largely on maintaining an educated and skilled workforce. Whether it is a solar education program sparking an early interest in science at local grade schools or nuclear science training at colleges and universities, we are passionate about education and workforce development. In 2010, NextEra Energy supported a variety of educational programs for elementary, middle, high school and college students. Here are some examples of those efforts:
Each year, countless children and families benefit from the generosity of NextEra Energy employees who join in the Salvation Army's Angel Tree program.
Supporting Elementary, Middle and High Schools
A Renewed Commitment to Science, Technology, Engineering and Math: In 2010, NextEra Energy took a more focused approach to supporting science, technology, engineering and math (STEM) education in Florida, using solar education as the platform to excite elementary, middle and high school students about this emerging clean energy technology.
Band members and cheerleaders from Palm Beach Gardens (Fla.) High School helped NextEra Energy kick off its 2010 United Way campaign. Welcoming the students were Sam Forrest, FPL vice president of energy marketing and trading (left center); Lew Hay, NextEra Energy chairman and CEO (center); and Pam Rauch, FPL vice president of development and external affairs (center right). 42
A Commitment to Our Communities and Our Employees
Sixth-graders Kristen Dawson, Leidys Saurez and Cleona Scarborough demonstrate how solar panels can be used as a source of power at New River Middle School in Fort Lauderdale, Fla. As participants in FPL's Next Generation Solar Education Program, the girls constructed this model home using alternative energy sources such as solar panels, a solar oven and a wind turbine.
A Commitment to Our Communities and Our Employees
Teacher Training and Curriculum: Through the "Winds for Schools" program, we provide hands-on alternative energy education to students and teachers in multiple school districts across northern Arizona. Our support will fund the installation of two small wind turbines in 2011, as well as training for dozens of teachers. Mentoring and College Prep: In addition to providing energy education, NextEra Energy provides other tools and resources to help prepare students for success after high school. Students at William T. Dwyer High School in Palm Beach Gardens, Fla., are learning first-hand what it is like to run a business, thanks to the school's partnership with our company. Dwyer High's Academy of Finance program, running throughout an entire academic year, is focused on teaching 11th grade students cash-flow models, depreciation, net-present-value and production tax credits. In 2010, 19 teams of four students each participated in the program. School Scholarships: Across the country, NextEra Energy Resources employees are supporting local schools, showing they are good neighbors to the communities in which they live and work. Starting in the spring of 2010, nine schools in Alabama, South Carolina, Kansas, Oklahoma and Texas each received a $2,000 grant to provide scholarships to students set to attend college. These scholarships will be given annually. NextEra Energy Resources has also provided educational support in Texas through the Forney Education Leadership Foundation with an annual $25,000 donation for the past six years.
Promoting University Relations: Education and Workforce Development
With a special focus on trying to fill entry-level positions with local men and women, we visit local college job fairs and speak regularly at campuses. We offer college students realworld experience via summer internship programs, mentoring and other education programs. And we have partnerships with a number of community colleges and universities. The following are examples of some of these programs: Nuclear Joint Apprenticeship Program: FPL and the International Brotherhood of Electrical Workers established a relationship with Indian River State College (IRSC), located near our St. Lucie nuclear power plant, and Miami Dade College (MDC), near our Turkey Point nuclear power plant, to prepare students to become mechanical maintenance, electrical maintenance and instrument and control specialists. Indian River State College Dynamic Flow-Loop Simulator Project: With support from FPL and a Department of Energy grant, IRSC is scheduled to open a new energy education and training facility in 2012. FPL is providing the center's Nuclear Energy Lab with a "dynamic flow loop" training device that includes pumps, valves, instruments and controls to illustrate the basic principles of thermodynamics, pressure and fluid flow, so the next generation of energy technicians can practice on a fully functional device. Accompanying curriculum will include instrumentation and control, electrical, mechanical, operations, radiation protection and engineering training.
IRSC is also working with the National Science Foundation to become a Regional Center of Excellence for Nuclear Training and Education in 2011. Electric Power Technology Program: In partnership with FPL, Palm Beach State College is preparing students for work in the power industry. With an associate of science degree in electrical power technology, students have the opportunity to complete an internship at a local FPL facility. Education Partnership Program: We work with colleges and universities to prepare students for employment with our company, and also offer opportunities for our workforce to continue their education. One example is our expanding relationship with MDC, which developed a bachelor's degree in electrical engineering. This degree will be customized to meet the continuing educational needs of our workforce, and many of the courses will be offered at our Turkey Point nuclear plant training facility. In addition to these programs, we regularly engage with college students and new graduates in a number of ways. Here are some examples: Business Rotation Program: NextEra Energy Resources helps maintain its competitive edge by developing top young talent, enrolling high-potential college graduates into an 18-month rotational training program. After three six-month rotations in areas such as business asset management, energy portfolio strategy and project development, these freshly minted graduates assume permanent positions within our company.
Educating Future Sustainability Leaders: As part of NextEra Energy Resources' research partnership reviewed earlier in this report, we are educating future leaders and experts in the renewable energy field. Five of the ecological projects being conducted are spearheaded by graduate students. As of January 2011, 29 research assistants, graduate students and undergraduates have worked in the field, analyzed data, and presented results at conferences as part of this research initiative. This work is educating a new crop of scientists, policy makers and citizens through hands-on experience with the nuts and bolts of sustainability.
The need for excellence in science, technology, engineering and math education has prompted NextEra Energy to work with state and local leaders to find solutions. Buck Martinez, FPL senior director for development, outlined the company's views at a 2010 event.
NextEra Energy, FPL and Scripps Research Institute Collaborate on Next-Generation Clean Energy Research
NextEra Energy and FPL have partnered with The Scripps Research Institute one of the world's largest independent, non-profit research organizations and its Scripps Florida division to focus on finding creative, clean-energy solutions. The multi-year partnership began in 2011 and will address three key challenges: » Improving the economic viability of large-scale clean energy expansions; » Increasing the output of next-generation renewable energy technologies; and » Enhancing the efficiency and storage capabilities of the nation's electric grid. The new partnership will expand solar power technology
A Commitment to Our Communities and Our Employees
research at NextEra Energy's Next Generation Living Lab I in Juno Beach, Fla., by creating the Next Generation Clean Energy Living Lab II at Scripps Florida headquarters in Jupiter, Fla. NextEra Energy and FPL experts will work with Scripps Florida scientists, who are addressing sustainability and energy security with fundamentally new chemistry to create next-generation technologies. The partnership will also include educational programs in the local community. "We are delighted to participate in this partnership, which advances the knowledge-based economy in the state," said Harry Orf, vice president for scientific operations at Scripps Florida. "These kinds of collaborations are critical to the economic future of Florida."
Honors students at Florida Atlantic University (FAU) listen to an environmental presentation given by a team of FPL employees. Several FPL leaders are graduates of FAU. 44
A Commitment to Our Communities and Our Employees
Matching Gifts for Education
A guaranteed opportunity to double an investment is rare, making NextEra Energy's Education Matching Gift program so beneficial. Full-time employees of our company can donate up to $10,000 to any eligible school, and our foundation will match that contribution, dollar for dollar, up to a maximum of $50,000 annually per school. Eligible schools include any accredited secondary schools, colleges and universities in the United States that can document their non-profit status.
providing a series of free webinars designed to meet specific interests and help small-, medium- and large-business customers run their companies in an energy-efficient manner. A December webinar proved extremely popular, reaching 600 people, compared to average attendance of 100.
Average Hours of Training in 2010
Per Employee, by Category
21.6 17.3 14.0
Webcams as a Window to Our World
We also use webcam technology to provide the public an opportunity to view selected events and activities involving company initiatives. Providing a "behind the gates" look into a small but fascinating aspect of our company's operations, FPL in 2009 installed a webcam at our power plant in Riviera Beach, Fla., allowing thousands of people to view manatees in the wild. In 2010, the activity monitored by the "manateecam" recorded more than 95,000 page views from around the world. The webcam at the Loggerhead Marinelife Center in Juno Beach, Fla., which enables people to watch sea turtles, received more than 47,000 hits in 2010. In addition, NextEra Energy Resources uses a public webcam to capture the nesting and birthing habits of a pair of bald eagles in Maine, at www.briloon.org/ oae/webcams/eaglecam1. Web hits exceeded 258,000 views since installation in 2006.
Bargaining Unit Exempt Non-Exempt
As a core believer in strength through differences, NextEra Energy makes every effort to recruit diverse talent and offer professional diversity organizations, diversity classes and special events to ensure long-term engagement. Our commitment to leveraging diverse talents, perspectives and ideas is rooted in our Employment Equal Opportunity (EEO) program.
Engaging Interested Customers
Soliciting Community Feedback
At NextEra Energy, we view our social responsibility as extending beyond supporting customers in need, equipping young people in schools and colleges, and helping meet other community concerns. We also believe strongly in seeking feedback from interested customers through outreach. This engagement is a core activity across NextEra Energy. For decades, we have conducted community outreach to take into consideration the thoughts and concerns of citizens and community leaders. We identify and engage interested parties in two primary ways: We work with those who are in geographic proximity to our ongoing operations, as well as with individuals, businesses and other groups that will be impacted by potential new projects, including low-income and elderly customers. Traditionally, these stakeholder groups include residential and business customers, community organizations, government accounts, media, faith-based organizations, associations and non-profits and, of course, our own employees.
Investing in Our Employees
At NextEra Energy, we take pride in providing our employees with a positive and engaging work environment, and we actively promote a culture of health, safety, continued learning and diversity. We believe an investment in our employees is a direct investment in our company's success. For 20 years, our award-winning NextEra Health & Well-Being program has provided information and onsite facilities to help employees care for themselves and their families. When it comes to safety, Our ZERO Today! safety program intends to help achieve a zero-injury record across our operations and builds safety into our employee performance reviews. With an emphasis on continued learning and more than 200 training classes, NextEra University serves as the corporate platform for oversight, coordination and delivery of corporate and technical development. Our "Partners in Performance" program is the method we use to measure and motivate employees to improve their performance and our engagement surveys show that it's had a measurable impact.
NextEra Health & Well-Being: A Wellness Program for Everyone
As important as wind turbines, poles, wires and smart meters are to the business of NextEra Energy, our people make it all happen. As a company, we take the health, safety and overall mental well-being of our most important assets very seriously, and we invest in them accordingly. One prime example of this commitment is our awardwinning NextEra Health & Well-Being program, which has provided information, motivation and onsite facilities to help employees better care for themselves and their families since its inception in 1991. The program consists of five distinct, but integrated, areas to help treat the whole person, including: fitness centers, health centers, health promotion and nutrition services and an Employee Assistance Program (EAP), which helps employees and their families proactively address psychological concerns. While providing health services is certainly good for our employees' well-being, it is also a sound financial investment. NextEra Energy saw a $2.29 return on investment for every dollar spent on health services offered in 2010.
An Annual Report to Customers
To ensure customers are well informed about our service, FPL delivered an "Annual Report to Customers" in Energy News, the newsletter accompanying the monthly bills we provide our customers. The report ensures our customers are informed about FPL's performance and progress on important initiatives. A video of FPL's year-end highlights was also posted online at www.FPL.com/yearbook.
Enhanced Education, Awareness and Communications
Guest Speakers Helping in the Community
In 2010, FPL's Community Outreach Team delivered 159 free and informative seminars to business and residential customers across Florida as part of the company's Community Ambassador Program. Topics included improving residential efficiency, energy savings tips, storm preparedness, clean energy and more. The team is a dynamic group of 60 professionally trained volunteers from across our company.
Using Technology to Reach Customers
Whether it's producing a DVD that helps low-income customers better manage their energy use, or hosting webinars to help business customers enhance their electric usage, FPL's customer service team is using technology to meet customer needs. Working in partnership with state agencies and Jacksonville Electric Authority, now known as JEA, FPL's customer service team created "Ways to Save Energy and Money" a seven-minute DVD with conservation tips. The field operations team also worked with business customers,
Instrument and control specialist Lupi Orpha Harper-Roberts at the company's Turkey Point nuclear power plant in October 2010. The company's commitment to a diverse workforce includes training programs at local colleges and attendance by company recruiters at a variety of targeted recruiting events.
A Commitment to Our Communities and Our Employees
Since 1991, the award-winning NextEra Health & Well-Being program has provided information, motivation and on-site facilities to help employees better care for themselves and their families. Pictured here at one of the company's 65 fitness centers is Shaun Francis, executive vice president, human resources.
A Commitment to Our Communities and Our Employees
Ninety percent of NextEra Energy employees reported that they participated in at least one NextEra Health & Well-Being program in the past year, and participation levels and satisfaction levels were high across all areas: » Fitness Centers: On-site fitness centers are offered at 65 company locations, and 66 percent of eligible employees are enrolled, with 50 percent of those enrolled as active users. Sites with no fitness center have access to NextEra Energy's team of fitness professionals, who are available to design and send personalized workout information anywhere in the company. » Health Centers: With more than 20,000 visits to our on-site health centers in 2010, our employees and their family members received high-quality primary care, and 96 percent were satisfied with their experience. More than 4,800 employees participated in on-site health screenings in 2010, a 31 percent increase over 2009. » Health Promotion and Nutrition Services: NextEra Health & Well-Being staff professionals made 250 on-site presentations to more than 7,900 employees in 2010 on topics ranging from sun protection to back health and conflict resolution, with an average employee rating for such programs at 4.8 on a 5.0-point scale. The percentage of employees who participated in our programs continuously for three or more years increased from 35 percent to 45 percent in 2010. » Employee Assistance Program: More than 3,800 employees received some type of EAP counseling services in 2010, while the company provided 138 on-site educational presentations to more than 1,800 employees. This program achieved a 93-percent employee satisfaction rate in 2010. Positive behavior and choices on the part of employees also have resulted in partial corporate funding of health reimbursement accounts and reductions in health care premiums. Rebates through NextEra Health & Well-Being for weight management, tobacco cessation and fitness were given to more than 700 employees and spouses in 2010.
Employees can reduce their biweekly premiums by $15 per paycheck by completing an online health assessment, and an additional $15 if their spouse completes the assessment. Our goal for 2011 is to further extend our outreach efforts to underserved populations, including employees outside of Florida, newly hired employees and family members.
Managing a Safe and Secure Workplace
At NextEra Energy, we are working on many fronts to keep our more than 15,000 employees safe, healthy, well-trained and engaged. A top-notch workforce helps us remain on the path to growth and continued success, and in 2010, we had the best safety record in recent history. Underscoring our commitment to health and safety, 19 NextEra Energy locations are now recognized as STAR sites by the U.S. Department of Labor Occupational Safety & Health Administration's (OSHA) Voluntary Protection Program, and 23 sites are pursuing this designation. Under this program, OSHA evaluates work groups that have maintained low injury rates, focused on employee engagement and achieved performance improvements in specific safety processes and procedures, and recognizes those groups with VPP STAR site awards.
» To further our ZERO Today! safety vision, the company has developed Hazard Assessment training aimed at operations and staff employees, and additional risk-specific Hazard Assessment training is under development. In 2010, Hazard Assessments were completed by 75 percent of the employee population (operations and staff). As a key part of the Hazard Assessment initiative in 2010, all employees were encouraged to participate in the "A-HA Moment" safety campaign. The campaign challenged every employee to stop and ask themselves before starting any activity at work or home: "What could go wrong here?" and take a moment to perform a quick assessment of potential dangers, big or small. It featured training and an employee contest in which 52 teams comprising more than 150 employees voluntarily submitted videos and photo essays illustrating their "A-HA Moments" of hazard recognition. » Many areas of the company have included additional safety training to their curriculum, focusing on areas such as safety leadership, driver safety and enhanced technical training. » Incident investigation processes were further strengthened to better identify and understand root causes of various issues, leading to more effective countermeasures. » The company holds an annual "Quality and Safety Expo" to give safety teams an opportunity to showcase the work they have done to further safety in their area. » We are enhancing our focus on employee engagement and safety culture with the goal of involving employees in the process. In 2010, we created a safety music video involving our own employees as a way to reinforce the safety message. As a result of these ongoing safety initiatives, NextEra Energy has been successful at keeping rates of injury, occupational disease, lost days and absenteeism low, while keeping workrelated fatalities at zero. NextEra Energy's OSHA 2010 rate of 1.47 in Florida and 0.63 outside of Florida were both lower than the industry average of 1.82, based on the most recently published EEI data from 2010.
of Electrical Workers' System Council U-4 has a very detailed company-union program including Local Joint Safety Advisory Committees, Business Unit Joint Safety Committees and a Corporate Joint Safety Committee. It also includes a comprehensive program for serious incident investigations using a specially trained union-management team. Extending our safety focus outside of the company, we also require suppliers who work on our property for 240 hours or more in a 12-month period to adhere to our safety standards by posting a workers' compensation Experience Modification Ratio (EMR) rating of 1.0 or less meaning its workers' compensation claims rate is average or better as determined by performance across their particular industry. An EMR rating higher than 1.0 triggers a thorough investigation and requires management's signature to approve the supplier.
Enhancing Safety Training, Awareness, Recognition and Certifications
ZERO Today! stresses that safety is everyone's job. All managers now ask every employee (operations and staff) to include at least one safety goal as part of their annual performance review. We also recognize every employee in the company for their number of years worked injury-free with letters and certificates and each site location is acknowledged for the number of hours and years it has operated without injury. Several new initiatives are also under way to further engage employees in the safety process.
Helping Employees Stay Safe and Healthy: ZERO Today! It's More Than a Motto
NextEra Energy's ZERO Today! safety vision is intended to help the company achieve a zero-injury record across its operations. Under ZERO Today!: » The company continues to refine its new Safety Information Management System; this system helps to drive a heightened level of safety responsibility among employees, supervisors and managers. Additionally, the new system further prompts the capture of all unintended events and collects additional specific event information that supports a higher level of analysis and loss prevention.
Representation in Formal Joint ManagementWorker Health and Safety Committees that Help Monitor and Advise on Occupational Health and Safety Programs
Work Category Employees directly or indirectly represented in formal joint management-worker safety and health committees. Employees directly represented on sitebased joint safety committees consisting of management and bargaining unit employees. Non-bargaining field personnel represented in safety committees that operate at the local level within their organization. Among the staff groups at some of NextEra Energy's larger locations, there is a Site Safety Committee that indirectly represents all employees who work at that location for safety and health concerns. Percentage 100
Safety in Collective Bargaining Agreements and Supplier Contracts
This focus on safety permeates all 10 collective bargaining agreements with NextEra Energy's family of companies, with specific provisions for safety equipment, hazardous working conditions, and joint company-union involvement in the development of safety standards. For example, the agreement between FPL and the International Brotherhood
OSHA Injury Rates, OSHA Illness Rates, Lost-Time Injury Rates and Number of Work-Related Fatalities for Each Region - 2010
Location Fla. Region Non-Fla. Region FPL's Fort Myers power plant is one of 19 NextEra Energy locations to earn STAR safety status in the OSHA Voluntary Protection Program. Raising a flag in celebration of the achievement are FPL's Paul Pape and Carl Hunter. 48
A Commitment to Our Communities and Our Employees
Hours Worked 19,851,763 9,828,545 29,680,308
Fatalities 0 0 0
All OSHA Cases 146 31 177
Lost-Time Cases 41 11 52
Illness Cases 9 1 10
Injury Cases 137 30 167
Lost-Time Rate 0.41 0.22
Illness Rate 0.09 0.02
Injury Rate 1.38 0.61
OSHA Rate 1.47 0.63
Lost-Time Rate = no. of lost-time cases x 200,000 divided by actual hours worked; Illness Rate = no. of OSHA illness cases x 200,000 divided by actual hours worked; Injury Rate = no. of OSHA injury cases x 200,000 divided by actual hours worked; OSHA Rate = no. of OSHA injury cases + no. of OSHA illness cases x 200,000 divided by actual hours worked.
A Commitment to Our Communities and Our Employees
Improving the Skyline, the Environment and Addressing Community Needs
Enhancing Learning and Development Opportunities
Founded in 2002, NextEra University serves as the corporate platform to coordinate and deliver strategically aligned, enterprisewide and business-unit-specific training and development. It plays a key role in the support of employee development plans with more than 1,000 classroom and online offerings in the following curriculum focus areas: Career Development, Commercial Skills, Corporate Culture, Leadership Development, Personal & Professional Effectiveness, Process & Project Management. Our functional colleges represent the major sectors of our business: College of Customer Service, College of Information Management, College of Nuclear Power, College of Power Generation, College of Distribution and College of Transmission/ Substation. These provide employees of specific business units the knowledge and skills necessary to thrive at their jobs. In response to employee feedback, NextEra University in 2010 began offering a curriculum of accredited courses aligned with the Project Management Institute (PMI), a premier membership association for the project management profession. Our employees completed 20,836 corporate training courses, including online and instructor-led courses, in 2010. The cost for corporate trainings courses was approximately $81 per employee. In 2010 employees invested a total of 258,662 hours in training.
year not just annually and that engagement initiatives continuously assess and address employee needs.
Motivating Our Workforce
A strong work ethic permeates NextEra Energy, and the expectation to achieve great results is high. The Partners in Performance (PIP) program is the standard method we use to measure and motivate employees to achieve ever-improving levels of performance. Managers are required to deliver performance and development feedback three times per year and are encouraged to do so continuously throughout the year. In 2010, the organization received a 100 percent completion of eligible employees for all phases of PIP. We use a pay-for-performance philosophy linking total compensation to corporate, business unit and individual goals. Data clearly shows the greater the line of sight to performance indicators, the greater share of performance-related compensation is earned as a percentage of total compensation.
NextEra Energy Values & Leadership Behaviors
Committed to Excellence We Are Committed to Excellence We Put Safety First We Take Ownership Do the Right Thing We Build Trust We Act with Integrity Treat People with Respect We Show Respect for All Individuals We Are Inclusive and Value Diversity We Communicate Effectively We Promote Teamwork We Value Employee Development
Valuing Talent and Performance
In addition to enhancing talent through education, NextEra Energy applies a rigorous methodology to ensure employee performance is monitored and evaluated throughout the
Developing Wind Technicians in Colorado, Texas and North Dakota
Alan Harrison, wind training manager at NextEra Energy Resources, knows that getting the best wind technicians can be accomplished when we partner with local community colleges, such as Northeastern Junior College (NJC) in Sterling, Colo. Located near our Peetz, Logan and Northern Colorado wind energy facilities, NJC saw the opportunity for students to learn skills that support good-paying careers in the wind industry. NextEra Energy Resources stepped in to help NJC develop the kind of training program that would result in qualified wind technicians. That's a win-win for the company and the students.
A Commitment to Our Communities and Our Employees
When people think about a new power plant, they probably don't consider many of the benefits outside of the electricity it will produce. In plans for FPL's Cape Canaveral Next Generation Clean Energy Center in Brevard County, Fla., a lot more is at stake: the skyline, the environment and even the local economy. In August 2010, FPL demolished its 45-year-old Cape Canaveral power plant in Cocoa, Fla., in preparation for the new clean energy center. The new facility's combined-cycle, natural gas technology will use about 33 percent less fuel per megawatt-hour of power generated and is capable of producing enough power for 250,000 homes and businesses. The sleeker stacks, half as high as those taken down, will improve the Space Coast skyline, and the plant's air emissions profile will improve as well.
And the benefits don't stop there. When it comes to the economy, the Cape Canaveral Next Generation Clean Energy Center is expected to generate an additional $12 million in tax revenue in its first full year of operation: $5.3 million for Brevard County schools, $4.8 million for the rest of Brevard County, and $1.6 million for other taxing authorities. The plant will create hundreds of direct and indirect jobs during the construction period. "This FPL project is a perfect example of how making the energy infrastructure in Florida more advanced can add jobs and environmentally friendly solutions," said Florida Senate President Mike Haridopolos.
"We provided cash and equipment donations that allowed NJC to launch its program," Harrison said. "The site lead at our Peetz wind farm was involved in the school's advisory council to share information about the skills and qualifications needed for wind techs. Student tours of our wind farm were also provided." NextEra Energy Resources works with other community colleges in Texas, North Dakota and Iowa on similar training programs. Some student internships have also been available. "Partnerships like this benefit both organizations," Harrison emphasized, "and we'll continue looking for opportunities to be involved with community colleges."
A Commitment to Our Communities and Our Employees
All complaints of discrimination are thoroughly investigated, and appropriate remedial action is taken where warranted. No employee is subject to retaliation for good-faith reporting of harassing or discriminatory conduct. Each allegation is handled promptly and confidentially. The NextEra Energy Code of Business Conduct and Ethics also addresses workplace responsibilities, reinforcing our commitment to providing equal employment opportunity and a work environment that is free of discrimination and harassment. Every new employee is required to read the Code, and employees are regularly reminded of its importance. A training course on the Code is mandatory for all non-bargaining employees. Employees may report any actual or suspected Code violation by calling a third-party-monitored 24-hour hotline or contacting either a compliance officer or any member of the Audit Committee of the NextEra Energy Board of Directors. We also are committed to continually improving our compliance and reporting processes. For example, we have created the position of senior vice president of internal audit and compliance to further improve the enforcement of our Code of Business Conduct & Ethics by consolidating auditing and corporate compliance activities into one department.
By leading respectfully, promoting teamwork, building a diverse and inclusive team, and investing in development, we strengthen and engage our greatest asset our people.
» Community Outreach NextEra Energy actively supports various local and national partnerships, including the Urban League of Palm Beach County, Catalyst, American Association of Blacks in Energy, Executive Women of the Palm Beaches and more.
A Core Belief in Strength Through Differences
NextEra Energy is committed to fostering an inclusive business environment that values and leverages the diverse talents, perspectives and ideas of all employees. We believe that a focus on diversity and inclusion can directly impact our bottom line. Our customer base is very diverse, and we believe it is important to have a workforce whose diverse perspectives and experience enable it to be responsive to the varied needs of our customers. We have integrated the standards of diversity and inclusion into our corporate culture, creating a variety of mechanisms to ensure the company is maximizing the power of diversity. These initiatives are led by the Office of Diversity and Inclusion, in partnership with the Corporate Diversity Council, which is composed of 13 business leaders who provide highlevel guidance and direction to this strategic goal. Some of these initiatives include: » Employee Network Groups (ENGs) ENGs promote an inclusive business environment and enhance employee engagement through information sharing, career development, team building and networking opportunities. The first ENGs were implemented in 2009, and there now are 12 ENGs, consisting of more than 800 actively engaged employees. They are involved in supporting our corporate initiatives, such as United Way, Power to Care Week and other internal and external outreach efforts. » Employee Engagement Survey In our effort to solicit valuable employee feedback, we included a set of four diversity and inclusion questions on the company's employee engagement survey. » Diversity & Inclusion Training Online and classroom resources are available to help employees embrace our commitment to diversity and inclusion. The Leading Diversity and Inclusion classroom course for managers is part of the core-training curriculum for leaders.
Diversity Through Recruiting Practices
In seeking to ensure a diverse candidate pool, our internal recruiting team leverages a suite of recruiting tools and practices. Our approach includes utilizing print media, advanced Internet searches, candidate referrals, college recruiting, third-party staffing and executive search firms, and posting to targeted websites. Our recruiters also attend multiple events, which represent diversity organizations, professional associations, military and veterans groups, and individuals with disabilities across the country. Here are some examples of these efforts: » Professional Diversity Organizations and Events: In 2011, we have attended or are scheduled to attend career fairs for organizations such as the American Association of Blacks in Energy, the Society of Women Engineers, the National Society of Black Engineers, the 10th Annual Asian Diversity Career Expo, Asian MBA Expo & Career Fair, Careers and the Disabled Career Expo for People with Disabilities, Women for Hire Career Fairs, National Urban League Conference & Career Fair, Kappa Alpha Psi National Conference, and many others. » Military Recruiting and Partnerships: In partnership with the Non-Commissioned Officers Association (NCOA) and Military.com, our recruiting team is scheduled to attend at least 16 military career fairs during 2011. Events will include those taking place at Patrick Air Force Base (Melbourne, Fla.), Fort Hood (Killeen, Texas), Ft. Bragg (Fayetteville, NC), Peterson Air Force Base (Colo.), and the Wounded Warriors Career Fair (Quantico, Va.). We also participate in other Wounded Warriors events as well as attending annual events for specific branches of the military. We partner with military transition offices and local veteran employment representatives seeking advance notice of exiting military personnel, and we are continuing NextEra Energy's relationship with the U.S. Army's Partnership for Youth Success (PaYS) program. PaYS provides youth with an opportunity to serve their country and then interview for a job with our company after completing a one-term enlistment.
Employees at all levels of the company are expected to comply with NextEra Energy's Code of Business Conduct and Ethics. "Doing the Right Thing," one of the company's corporate values, is all about building trust and acting with integrity.
Valuing Employee Engagement
Since 2007, we at NextEra Energy have surveyed employees on a regular basis to gain insight into their opinions on work at the company. Four areas of special focus have emerged: career development, trust and leadership, work-life balance, and rewards and recognition. To address areas of concern, the company initiated senior executive outreach sessions, a career discovery workshop, an enhanced onboarding experience for new employees, and career mapping to help employees better plan and manage their opportunities for advancement. In the spring of 2010, 77 percent of employees participated in the third corporate survey. Our overall engagement score in 2010 remained approximately the same as in the prior survey, even through the events of the economic downturn. According to the survey administrator, this trend is very positive compared to external data of other companies experiencing decreased levels of engagement. Since the 2010 corporate survey, corporate values now are emphasized through communications, education and accountability. Senior executives increased their communications by conducting biannual town hall sessions open to all employees. Business unit executives are expanding accessibility and visibility with their organizations and across functions. The next corporate survey is scheduled for January 2012.
Entry Level Jobs at NextEra Energy Far Exceed Minimum Wage at Key Florida Locations
FPL call center representative (standard entry-level job) $7.25/hr. minimum wage (U.S. and Florida)
Human Rights-Related Training at NextEra Energy, 2010
Course Description It Is All about Respect - Employees It Is All about Respect - Managers Prelude: Controlled Substance Abuse Prelude: Integrated Disability Mgmt. Prelude: Progressive Discipline Prelude: Security for Supervisors Total Total Hours 1,423 515 175 167 99 179 2,558 Courses Taken 1,423 343 117 111 99 119 2,212
Enforcing Equal Employment Opportunity and Non-Discrimination
At NextEra Energy, we adhere strictly to U.S. equal opportunity and non-discrimination laws. Even as our operations outside the United States are very limited, we support global efforts to oppose child labor, forced compulsory labor and violations of indigenous peoples. Our equal employment opportunity policy requires employees and supervisors to promptly report any harassing conduct or discriminatory practice they experience, witness or of which they have knowledge. We provide multiple reporting avenues. Employees are encouraged to report concerns to their supervisors, a company human resources representative, or our equal employment opportunity office via a toll-free hotline where they can raise their concerns confidentially.
Military Veteran Now Serving Our Nation in a New Way
"I did eight years in the U.S. Marine Corps. What I brought to our team was a strong safety background, and (I) was able to walk right into our safety culture here at NextEra Energy. Coming from a military background and serving our country and everything, it's nice to step aside and service our country in slightly a different way. Everybody uses electricity and it's nice to be able to provide that in a greener manner. I like the diversity in our daily job as a wind technician. When people find out I work here and that I work
A Commitment to Our Communities and Our Employees
Total Workforce by Employment Type
Employment Type Exempt Non-Exempt Bargaining Unit Total 12/31/2010 7,057 3,829 4,091 14,977 % 47 26 27 100
for NextEra Energy, there's nothing but smiles and questions, and I try to answer them all. Having the ability to produce clean, renewable energy, it does make me feel proud because it's looking out for our family and our children's children, and the next generation. That's really what it's all about, making the place better than when you first got here and the more power we produce through wind, the better it is ..." Rob Kramer, NextEra Energy Resources wind technician since August 2009
A Commitment to Our Communities and Our Employees
Enhancing Recruiting Company Wide
In 2010, NextEra Energy's talent acquisition team maintained its focus on recruitment while enhancing a number of targeted processes to ensure a pipeline of new talent. Working with an aggressive sourcing model, our team used new technology to identify active and passive candidates and applicants. To increase our exposure within the recruiting market, we initiated new website partnerships, while modifying and improving existing relationships. Additionally, we implemented a technology partner to assist in efficient talent searches, enabling us to access and source multiple websites simultaneously. We also partner with local and national universities and community colleges to identify student candidates who may be considering our business as a robust and sustainable career pathway and attract them to our organization. On the subject of local hiring of senior management, of 35 senior managers (grade G1 and above) hired at NextEra Energy in 2010, 10 were local to the state in which the positions are located.
Utility Large Business Customers. FPL received a rating of 8.6 out of 10, with FPL's account management team leading the utility to high marks. The ranking is based on survey responses from more than 1,400 U.S. utility large business customers. » NextEra Energy ranks in the top 10 among companies worldwide for social responsibility, according to the 2011 "World's Most Admired Companies" report released by Fortune magazine. » For the fifth consecutive year, in 2011 NextEra Energy was named one of the World's Most Ethical Companies by Ethisphere magazine. According to Ethisphere, the designation "recognizes companies that truly go beyond making statements about doing business `ethically' and translate those words into action." Of the 110 firms named to the World's Most Ethical Companies list this year, only two were from the U.S. energy and utility sector. NextEra Energy is one of just 24 companies worldwide to receive the Ethisphere honor all five years it has existed. » NextEra Energy in 2010 was awarded "Best Employer for Healthy Lifestyles" by the National Business Group on Health for the fifth time for innovative health-promotion programs and measureable results from our NextEra Health & Well-Being program. The National Business Group on Health is a non-profit organization of 266 large employers. » In 2010, OSHA awarded FPL's Fort Lauderdale, Fort Myers, Gas Turbine Power Park and Putnam plants and NextEra Energy Resources' Marcus Hook, Forney, Calhoun and Rhode Island State Energy Center plants with STAR awards in its Voluntary Protection Program (VPP). The VPP promotes effective worksite-based safety and health, and the STAR status is reserved for worksites that implement exemplary programs and achieve injury and illness rates below the national average for their respective industries. » NextEra Energy was named in 2010 one of the nation's top 60 "Diversity Elite" companies by HispanicBusiness magazine. To determine the 60-member "Diversity Elite 2010" list, HispanicBusiness magazine analyzed data on companies' boards of directors and leadership, recruitment, retention and promotion, marketing and community outreach, and supplier diversity.
Global Reporting Initiative (GRI) Reference Table
indicator 1.1 1.2 Description Statement from most senior decision-maker Description of key impacts, risks and opportunities section(s) Chairman's letter Environment, Business Company Profile Company Profile Company Profile Company Profile Company Profile Company Profile Company Profile Environment, Business, Communities and Employees Environment Environment Environment Company Profile Company Profile Company Profile Company Profile Company Profile Company Profile Company Profile Global Reporting Initiative-Reference Table Company Profile Company Profile Company Profile Company Profile Company Profile Environment, Business, Communities and Employees page(s) 1 12-17, 32-35 59 59 60 59 59 60 59-60 23, 39, 54 Strategy and Analysis
Organizational Profile 2.1 2.2 2.3 2.4 2.5 2.7 2.8 2.10 Name of Organization Primary brands, products and services Operating structure Location of headquarters Number and names of countries in which organization operates Markets served Scale of organization Awards received in the reporting period
Electric Utility SectorSpecific Organizational Profile Disclosures EU1 EU2 EU5 3.1 3.2 3.3 3.4 3.5 3.6 3.9 3.12 Governance 4.1 4.2 4.3 4.6 4.7 Governance structure Whether chair of highest governance body is also an executive officer Number of members of highest governance body that are independent and/or nonexecutive members Processes in place to ensure that conflicts of interests are avoided Process for determining qualifications and expertise of members of highest governance body for guiding organization's strategy on economic, environmental and social topics 59 59 59 59 59 4-5, 14, 17, 18, 22, 26-27, 3334, 40-41, 52, 53 Installed capacity, by primary energy source and regulatory regime Net energy output, by primary energy source and regulatory regime Allocation of CO2 emissions allowances or equivalent by carbon trading framework Reporting period for information Date of most recent previous report Reporting cycle (annual, biennial, etc.) Contact point for questions Process for defining report content Boundary of report Data measurement techniques and basis of calculations Table identifying location of Standard Disclosures in the report 24 24 13 59 59 59 59 59 59 59 55-58
Community and Employee Awards and Recognition
» Corporate Responsibility magazine named NextEra Energy Inc. one of the 100 Best Corporate Citizens in the United States for 2010. » For the seventh consecutive year, in 2010 FPL received the prestigious ServiceOne Award for exceptional customer service, the only utility to win this award seven times. The company also received four additional awards recognizing excellence in specific areas of customer service. PA Consulting Group presents the ServiceOne Award annually, recognizing utilities for customer service excellence, including the contact center, billing, payment, revenue protection, credit and collections, meter reading and safety. To qualify for the ServiceOne Award, FPL performed in the top 25 percent versus other companies, based on 26 measures of excellence. » FPL tied for second place with two other utilities in the 2010 E Source Gap and Priority Benchmark: A Survey of
Women have played an important role at NextEra Energy since the early days of FPL. Here are just a few highlights from a long history of making strides:
1940s: 1960s: 1970s: 1990s: When more than one-fourth of the company's employees went off to World War II, women including the wives of employees at war - took on men's jobs. In what now elicits chuckles, FPL's Sunshine Service News in 1963 published its "Fashion Classics," guidelines for women's dress at the office. A sign of the times, it instructed, "Girls should dress for the man's world in which they work." The first woman was appointed to an executive officer position for FPL. The first woman was appointed vice president for the company.
Statements of mission or values, codes of conduct, and principles
Commitments to External Initiatives 4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses Environment, Communities and Employees 13, 52
2000s: Another first, women employees at FPL formed the Women in Energy Employee Network Group in 2009. Today, the network group has three chapters and more than 200 members.
A Commitment to Our Communities and Our Employees
Stakeholder Engagement 4.14 4.15 4.16 List of stakeholder groups engaged Basis for identification and selection of stakeholders engaged Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Communities and Employees Communities and Employees Communities and Employees 46 46 46
Products and Services EN26 Employment EU14 Programs and processes to ensure the availability of a skilled workforce Communities and Employees 43-46, 47-49, 51-54 Initiatives to mitigate environmental impact of products/services, and intent of impact mitigation Environment 4-23
Availability and Reliability EU6 Management approach to ensure short- and long-term electricity availability and reliability Business 28-31
Labor/Management Relations LA4 Percentage of employees covered by collective bargaining agreements Communities and Employees 52
Demand-Side Management EU7 Demand-side management programs including residential, commercial, institutional and industrial Business 28
Occupational Health and Safety LA6 LA7 Business 33 LA8 LA9 Communities and Employees Communities and Employees 52 44-45 Percent of total workforce represented in joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs Rates of injury, occupational diseases, lost days and absenteeism, and number of workrelated fatalities by region Education, training, counseling, prevention and risk-control programs in place to assist employees, families or community members regarding serious diseases Health and safety topics covered in formal agreements with trade unions Communities and Employees Communities and Employees Communities and Employees Communities and Employees 49 49 47-48 49
Economic Performance EC6 Policy-practices and proportion of spending on locally based suppliers at significant locations
Market Presence EC5 EC7 Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation Procedures for local hiring
Training and Education LA10 LA11 Average hours of training per year per employee by employee category Programs for skills management and lifelong learning that support continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews Communities and Employees Communities and Employees Communities and Employees 47 47, 51 51
Indirect Economic Impacts EC8 Impact of services provided primarily for public benefit (i.e., pro-bono) Business, Communities and Employees 36-37, 46
System Efficiency EC11 Average generation efficiency of thermal plants by energy source and by regulatory regime Environment 25
Investment and Procurement Practices HR3 HR6 Business Environment, Business, Communities and Employees Environment Environment Environment Environment Environment Environment Environment Environment Environment Environment 28 6-12, 16, 21, 22, 23, 28, 38, 45, 46 14 14-17 17-18 17-18 18-22 17-22 18 6, 7, 9, 11, 12, 13 9 25 57 HR9 Community EU19 Corruption SO3 Public Policy SO5 HR7 Public policy position and participation in public policy development and lobbying Operations identified as having significant risks for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor Business Communities and Employees 34, 36-37 52 Percentage of employees training in organization's anti-corruption policies and procedures Business 33-34 Stakeholder participation in the decision-making process related to energy planning and infrastructure development Communities and Employees 46 HR7 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations Operations identified as having significant risks for incidents of child labor, and measures taken to contribute to the elimination of child labor Operations identified as having significant risks for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor Communities and Employees Communities and Employees Communities and Employees 52 52 52
Environmental EN5 Energy saved due to conservation and efficiency improvements Initiatives to provide energy-efficient or renewable energy-based products and services and reductions in energy requirements as a result of these initiatives Total water withdrawal by source Water sources significantly affected by withdrawal of water Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Habitats protected or restored Strategies, current actions, future plans for managing impacts on biodiversity Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk Initiatives to reduce greenhouse gas emissions and reductions achieved NOx, SOx and other significant air emissions by type and weight Total number and volume of significant spills
Human Rights HR8 Percentage of security personnel trained in company's policies or procedures concerning aspects of human rights that are relevant to operations Total number of incidents of violations involving rights of indigenous people and actions taken Communities and Employees Communities and Employees 52 52
EN8 EN9 EN11 EN12 EN13 EN14 EN15 EN18 EN20 EN23 56
indicator Access EU23 Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services Business, Communities and Employees 28, 36-37, 46 Description section(s) page(s)
Provision of Information EU24 Access EU28 EU29 Power outage frequency Average power outage duration Business Business 29 29 Practices to address language, cultural, low literacy and disability-related barriers to accessing and safely using electricity and customer support services Business 37
Product Responsibility Performance Indicators EU26 Percentage of population unserved in licensed distribution or service areas Business 37
NextEra Energy, Inc., (NYSE: NEE) is a leading clean energy company with 2010 revenues of more than $15 billion, nearly 43,000 megawatts of generating capacity, and approximately 15,000 employees in 28 states and Canada. Headquartered in Juno Beach, Fla., NextEra Energy's principal subsidiaries are NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves approximately 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country. Through its subsidiaries, NextEra Energy collectively operates the third largest U.S. nuclear power generation fleet. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.NextEraEnergyResources.com, www.FPL.com
Environmental and Sustainability Reporting History
FPL was one of the first electric utilities in the United States to form an environmental department. Starting in the mid-1970s, FPL began reporting on its environmental performance on a regular basis in the form of environmental reports. Over time, these reports have become broader and more detailed. Today, FPL's parent company, NextEra Energy, produces a regular sustainability report. This is the company's fifth such report. The first covered mainly 2006 activities, the second covered the company's environmental and social initiatives in 2007, and the most recent reports, published in 2009 and 2010, covered 2008 and 2009 activities, respectively, related to environmental excellence, social involvement and economic performance. This 2011 edition of the report includes mainly 2010 activities and covers operations in the United States and Canada for both of NextEra Energy's principal subsidiaries NextEra Energy Resources and FPL in addition to certain aspects of supplier relationships. In producing the report, NextEra Energy has used generally accepted reporting measures in the electric utility industry. Over time, NextEra Energy has made a significant effort to ensure the report reaches a wide variety of stakeholders. In 2010, a cross-functional team determined that these reports should contain more information on the company's environmental, economic and social performance and reach a more comprehensive audience than ever before, including investors, community leaders, state and local government leaders, and environmental and social-interest groups. Much of the information contained within the report is also reported to state and federal regulatory agencies such as state public service commissions, the U.S. Securities and Exchange Commission, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and other agencies. We intend to continue to produce these reports annually. Feedback on our sustainability initiatives is welcome and encouraged. Please contact NextEra Energy at 561-691-2655 or via email at [email protected]
Environmental Performance Indicators EN1 EN10 EN21 EN25 EN30 Materials used by weight or volume Percentage and total volume of water recycled and reused Total water discharge by quality and destination Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by our discharges of water and runoff Total environmental protection expenditures and investments by type Environment Environment Environment Environment Environment 22 14 14-17 14-18 23
Board of Directors Composition by Classification » Executive directors: 1 (chairman) » Independent directors: 12 » Total: 13 NextEra Energy's chief executive officer serves as Chairman of the company's Board of Directors, and the Board also has an independent Lead Director. The Governance & Nominating Committee is responsible for the selection and nomination of Board members. The company's Corporate Governance Principles & Guidelines, a copy of which is available in the Governance section of our website at www.NextEraEnergy.com/pdf/corporate_governance.pdf contains Board membership qualifications, including experience, skills and attributes that are considered by the Governance & Nominating Committee in recommending non-employee nominees for a position on the Board. The selection of top management is a Board function, with remuneration set by the Compensation Committee. All corporate governance documents comply with applicable New York Stock Exchange and U.S. Securities and Exchange Commission requirements. Non-executive directors are required to own shares valued at five times their annual retainer within three years of Board election. The full Board and each Committee perform annual self-assessments. A variety of processes are also in place for the Board to ensure that conflicts of interest (COI) and even the appearance of conflicts are avoided. NextEra Energy has implemented a variety of methods for preventing and reporting COIs in the workplace, including processes for disclosing potential COIs, auditing mechanisms to detect conflicts, and employee communications and training to promote compliance.
NextEra Energy Highlights (2010)
Operating Revenues ................................................. $15.3 billion Operating Expenses ................................................. $12.1 billion Net Income.................................................................$2.0 billion Earnings per Share (assuming dilution) ............................... $4.74 Net unrealized mark-to-market gains associated with non-qualifying hedges .............................($0.43) Other than temporary impairment losses net ................. ($0.01) Adjusted Earnings per Share (assuming dilution) ............... $4.30 Retained Earnings ......................................................$8.9 billion Cash Flows from Operating Activities .........................$3.8 billion Capital Expenditures ..................................................$5.7 billion Total Assets ..............................................................$53.0 billion Total Capitalization ...................................................$32.5 billion Total Generating Capacity1 ............................ 42,588 megawatts Employees (year-end) ....................................................... 14,997 Geographic Presence .................... 28 states, Canada and Spain
Operating Structure, Including Main Divisions, Operating Companies, Subsidiaries and Joint Ventures
NextEra Energy, Inc. Florida Power & Light Company NextEra Energy Resources, LLC FPL Fibernet, LLC FPL Group Resources, LLC NextEra Energy Power Marketing, LLC NextEra Energy Project Management, LLC NextEra Energy Operating Services, LLC NextEra Energy Seabrook, LLC NextEra Energy Duane Arnold, LLC NextEra Energy Point Beach, LLC NextEra Energy New Mexico Operating Services, LLC NextEra Energy Maine Operating Services, LLC Gexa Energy, LP WindLogics, Inc. NextEra Energy Canadian Operating Services, Inc. FPL Energy Services, Inc. NextEra Energy Canadian, ULC Lone Star Transmission, LLC NextEra FiberNet, LLC
NextEra Energy, Inc., Net Income by Segment
NextEra Energy, Inc., Earnings Per Share by Segment
2010 $945 980 32 $1,957 Florida Power & Light NextEra Energy Resources Corporate and Other NextEra Energy, Inc., Consolidated 2009 $2.04 1.86 0.07 $3.97 2010 $2.29 2.37 0.08 $4.74
2009 $831 759 25 $1,615
Florida Power & Light NextEra Energy Resources Corporate and Other NextEra Energy, Inc., Consolidated
NextEra Energy, Inc., Reconciliation of Adjusted Earnings to Net Income
NextEra Energy Resources, LLC, Reconciliation of Adjusted Earnings to Net Income
2009 $ 1,615 2010 $1,957
2009 $ 759
2010 $ 980
Net Income Adjustments, net of income taxes: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges Other than temporary impairment losses, net Cumulative effect of change in accounting principle, net Impairment/other charges, net Merger-related expenses adjusted earnings
Net Income Adjustments, net of income taxes: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges Other than temporary impairment losses, net Cumulative effect of change in accounting principle, net Impairment/other charges, net Merger-related expenses
Includes purchased power.
Note: In 2010, and to date in 2011, NextEra Energy has issued no restatements of financial results.
Markets Served by NextEra Energy
As of Dec. 31, 2010
NextEra Energy, Inc., Reconciliation of Adjusted Earnings Per Share to Earnings Per Share
Types of Customers Residential, commercial, industrial Utilities, retail and marketing and trading counterparties Earnings Per Share (assuming dilution) Adjustments: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges Other than temporary impairment losses, net Cumulative effect of change in accounting principle, net Impairment/other charges, net Merger-related expenses Adjusted Earnings Per Share 2009 2010 $ 3.97 $ 4.74
NextEra Energy Resources, LLC, Reconciliation of Adjusted Earnings Per Share to Earnings Per Share
Earnings (Loss) Per Share (assuming dilution) Adjustments: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges Other than temporary impairment losses, net Cumulative effect of change in accounting principle, net Impairment/other charges, net Merger-related expenses Adjusted Earnings Per Share 2009 2010 $ 1.86 $ 2.37
Majority Subsidiary Florida Power & Light NextEra Energy Resources
Geography 35 Florida counties 26 states, Canada and Spain
Sectors Retail Wholesale and retail
NextEra Energy Governance Structure
Below is a list of members of the Board of Directors and the committees on which they serve. For a description of each committee charter, please go to http://www.NextEraEnergy.com/investors/governance.shtml. C = Chairperson / M = Member
Director Sherry S. Barrat Robert M. Beall, II J. Hyatt Brown James L. Camaren Kenneth B. Dunn J. Brian Ferguson Lewis Hay, III Toni Jennings Oliver D. Kingsley, Jr Rudy E. Schupp William H. Swanson Michael H. Thaman Hansel E. Tookes, II 60 M C M M M M M M M C M M C M C M M M M M M Audit Compensation M M M M M C Executive Finance & Investment Governance & Nominating M Nuclear
Cautionary statements and Risk Factors that May affect Future Results In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), NextEra Energy, Inc. (NextEra Energy), and Florida Power & Light Company (FPL) are hereby providing cautionary statements identifying important factors that could cause NextEra Energy's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of NextEra Energy and FPL in this report, on their respective websites, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, strategies, future events or performance (often, but not always, through the use of words or phrases such as will, will likely result, are expected to, will continue, is anticipated, aim, believe, could, should, would, estimated, may, plan, potential, projection, goals, target, outlook, predict and intend or words of similar meaning) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could have a significant impact on NextEra Energy's and/or FPL's operations and financial results, and could cause NextEra Energy's and/or FPL's actual results to differ materially from those contained or implied in forward-looking statements made by or on behalf of NextEra Energy and/or FPL. Any forward-looking statement speaks only as of the date on which such statement is made, and NextEra Energy and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. The business, financial results, financial condition and prospects of NextEra Energy and FPL are subject to a variety of significant risks, many of which are beyond their control. The following is a description of some of the important risk factors that may adversely affect the business and may cause the actual results of NextEra Energy and FPL in future periods to differ substantially from those that NextEra Energy or FPL currently expects or seeks. Many of the risks set forth below may only apply to a portion of the businesses of subsidiaries of NextEra Energy, such as its FPL business, its wind or solar generation development businesses, its transmission business or its gas infrastructure business. Accordingly, references to "NextEra Energy" below in some instances refer to the applicable businesses or subsidiaries of NextEra Energy. Risks specifically applicable to FPL generally include a reference to "FPL." NextEra Energy's and FPL's financial results may be adversely affected by the extensive regulation of their businesses. » The operations of NextEra Energy and FPL are subject to complex and comprehensive federal, state and other regulation. This extensive regulatory framework, some but not all of which is more specifically identified in the following risk factors, regulates, among other things, NextEra Energy's and FPL's industry, rate and cost structure, operation of nuclear power facilities, construction and operation of generation, transmission and distribution facilities, acquisition, disposal, depreciation and amortization of assets and facilities, decommissioning costs, transmission reliability, wholesale and retail competition, and commodities trading and derivatives transactions. In their business planning and in the management of their operations, NextEra Energy and FPL must address the effects of regulation on their businesses and proposed changes in the regulatory framework. Significant changes in the nature of the regulation of NextEra Energy's and FPL's businesses could require changes to their business planning and management of their businesses and could adversely affect their financial results, including, but not limited to, the value of their assets. NextEra Energy and FPL must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions. Should NextEra Energy or FPL be unsuccessful in obtaining necessary licenses or permits on acceptable terms, should there be a delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any investigations or enforcement actions or impose penalties or disallowances on NextEra Energy or FPL, NextEra Energy's and FPL's businesses could be adversely affected. NextEra Energy's and FPL's financial results could be negatively affected if they or their rate-regulated businesses are unable to recover, in a timely manner, certain costs, a return on certain assets or an appropriate return on capital from customers through regulated rates and, in the case of FPL, cost recovery clauses. » FPL is a regulated entity subject to the jurisdiction of the Florida Public Service Commission (FPSC) over a wide range of business activities, including, among other items, the retail rates charged to its customers, the terms and conditions of its services, procurement of electricity for its customers, issuance of securities, transfers of some utility assets and facilities to affiliates, and aspects of the siting and operation of its
generating plants and transmission and distribution systems for the sale of electric energy. Lone Star Transmission, LLC (Lone Star), which is a wholly owned subsidiary of NextEra Energy, is a regulated entity subject to the jurisdiction of the Public Utility Commission of Texas (PUCT) over a wide range of business activities. The FPSC and PUCT have the authority to disallow recovery by FPL and Lone Star, respectively, of costs that it considers excessive or imprudently incurred. The regulatory process, which may be adversely affected by the political, regulatory and economic environment in Florida, Texas and elsewhere, can restrict NextEra Energy's and FPL's ability to grow earnings and does not provide any assurance as to achievement of authorized or other earnings levels. NextEra Energy's and FPL's financial results could be materially adversely affected if any material amount of costs, a return on certain assets or an appropriate return on capital cannot be recovered through base rates, cost recovery clauses or other regulatory mechanisms. » Decisions of the FPSC and the PUCT have been and, in the future, may be adversely affected by the local and national political, regulatory and economic environment and may adversely affect the financial results of NextEra Energy and FPL. These decisions may require, for example, NextEra Energy or FPL to cancel or delay planned development activities and to reduce or delay other planned capital expenditures which could reduce the earnings potential of NextEra Energy and FPL. NextEra Energy and FPL are subject to federal regulatory compliance and proceedings which have significant compliance costs and expose them to substantial monetary penalties and other sanctions. » In addition to the regulatory risks that may affect NextEra Energy and FPL described above, the extensive federal regulation of the operations of NextEra Energy and FPL exposes the companies to significant and increasing compliance costs. NextEra Energy and FPL also are subject to costs and other potentially adverse effects of regulatory investigations, proceedings, settlements, decisions and claims, including, among other items, potentially significant monetary penalties for non-compliance. As an example, under the Energy Policy Act of 2005, NextEra Energy and FPL, as owners and operators of bulk power transmission systems and/or electric generation facilities, are subject to mandatory reliability standards. Compliance with these mandatory reliability standards may subject NextEra Energy and FPL to higher operating costs and may result in increased capital expenditures. If FPL or NextEra Energy is found not to be in compliance with these standards, it may incur substantial monetary penalties and other sanctions. NextEra Energy and FPL may be adversely affected by increased governmental and regulatory scrutiny or negative publicity. » From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting NextEra Energy and FPL. Adverse press coverage and other adverse statements may result in investigations by regulators, legislators and law enforcement officials or in lawsuits. Responding to these investigations and lawsuits, regardless of the ultimate outcome of the proceeding, can divert the time and effort of senior management from NextEra Energy's and FPL's businesses. Addressing any adverse publicity, governmental scrutiny or enforcement or other legal proceedings is time consuming and expensive and, regardless of the factual basis for the assertions being made, can also have a negative impact on the reputation of NextEra Energy and FPL and on the morale and performance of their employees, which could adversely affect their financial results. NextEra Energy's and FPL's businesses are subject to risks associated with legislative and regulatory initiatives. » NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives, including, for example, initiatives regarding regulation, deregulation or restructuring of the energy industry and regulation of the commodities trading and derivatives markets. NextEra Energy and its subsidiaries will need to adapt to any changes and may face increasing costs and competitive pressures in doing so. NextEra Energy produces the majority of its electricity from clean and renewable fuels, such as nuclear, natural gas and wind, operates in the competitive segment of the electric industry, has targeted the competitive segments of the electric industry for some of its future growth and relies on the efficient operation of the commodities trading and derivatives markets. NextEra Energy's financial results and growth prospects could be adversely affected as a result of new, or changes in, laws, regulations or interpretations, or other regulatory initiatives, including, but not limited to, those that reverse or restrict the competitive restructuring of the energy industry or the effective operation of the commodities trading or derivatives markets. NextEra Energy and FPL are subject to numerous environmental laws and regulations that require capital expenditures, increase their cost of operations and may expose them to liabilities. » NextEra Energy and FPL are subject to domestic and foreign environmental laws and regulations, including, but not limited to, extensive federal, state, and local environmental statutes, rules and regulations relating to air quality, water quality and usage, climate change, greenhouse gas (GHG), including, but not limited to, carbon dioxide (CO2) emissions, waste management, hazardous wastes, marine, avian and other wildlife mortality and habitat protection, natural resources, health, safety and renewable portfolio standards (RPS) that could, among other things,
prevent or delay the development of power generation, power or natural gas transmission, or other infrastructure projects, restrict the output of some existing facilities, limit the use of some fuels required for the production of electricity, require additional pollution-control equipment, and otherwise increase costs or limit or eliminate certain operations. There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future as a result of new legislation, the current trend toward more stringent standards, and stricter and more expansive application of existing environmental regulations. For example, among other potential or pending changes described elsewhere in this report, the process of hydraulic fracturing or similar technologies to drill for natural gas and related compounds used by NextEra Energy's gas infrastructure business are currently being debated for potential regulation at the state and federal levels. Violations of current or future laws, rules and regulations could expose NextEra Energy and FPL to regulatory proceedings, disputes with, and legal challenges by, third parties, and potentially significant civil fines, criminal penalties and other sanctions. NextEra Energy's and FPL's businesses could be negatively affected by federal or state laws or regulations mandating new or additional limits on the production of GHG emissions. » Federal or state laws or regulations may be adopted that would impose new or additional limits on GHG, including, but not limited to, CO2 and methane, from electric generating units storing and combusting fossil fuels like coal and natural gas. The potential effects of such GHG emission limits on NextEra Energy's and FPL's electric generating units are subject to significant uncertainties based on, among other things, the timing of the implementation of any new requirements, the required levels of emission reductions, the nature of any market-based or tax-based mechanisms adopted to facilitate reductions, the relative availability of GHG emission reduction offsets, the development of cost-effective, commercial-scale carbon capture and storage technology and supporting regulations and liability mitigation measures, and the range of available compliance alternatives. While NextEra Energy's and FPL's electric generating units emit GHGs at a lower rate of emissions than most of the U.S. electric generation sector, the financial results of NextEra Energy and FPL could be adversely affected to the extent that any new GHG emission limits, among other potential impacts: create substantial additional costs in the form of taxes or emission allowances; make some of NextEra Energy's and FPL's electric generating units uneconomical to operate in the long term; require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or affect the availability or cost of fossil fuels. The construction, operation and maintenance of nuclear generation facilities involve risks that could result in fines or the closure of nuclear generation facilities owned by NextEra Energy or FPL and in increased costs and capital expenditures. » Together, FPL and NextEra Energy's other subsidiaries own, or hold undivided interests in, eight nuclear generation units in four states. The construction, operation and maintenance of the facilities involve inherent risks, including, but not limited to, the following: » The nuclear generation facilities are subject to environmental, health and financial risks, such as risks relating to site storage of spent nuclear fuel, the disposition of spent nuclear fuel, leakage and emissions of tritium and other radioactive elements in the event of a nuclear accident or otherwise, the threat of a terrorist attack and other potential liabilities arising out of the ownership or operation of the facilities. Although NextEra Energy and FPL maintain decommissioning funds and external insurance coverage which are intended to reduce the financial exposure to some of these risks, the cost of decommissioning the facilities could exceed the amount available in the decommissioning funds, and the liability and property damages could exceed the amount of insurance coverage. In the event of an incident at any nuclear generation facility in the United States or at certain nuclear generation facilities in Europe, NextEra Energy and FPL could be assessed significant retrospective assessments and/or retrospective insurance premiums as a result of their participation in a secondary financial protection system and a nuclear insurance mutual company. » The U.S. Nuclear Regulatory Commission (NRC) has broad authority to impose licensing and safety-related requirements for the construction of nuclear generation facilities, the addition of capacity at existing nuclear generation facilities, and the operation and maintenance of nuclear generation facilities, and such requirements are subject to change. In the event of non-compliance, the NRC has the authority to impose fines or shut down a nuclear generation facility, or to take both of these actions, depending upon its assessment of the severity of the situation, until compliance is achieved. NRC orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require NextEra Energy and FPL to incur substantial operating and capital expenditures at their nuclear generation facilities. In addition, any serious nuclear incident occurring at a NextEra Energy or FPL plant could result in substantial remediation costs and other expenses. A major incident at a nuclear facility anywhere in the world could cause the NRC to limit or prohibit the operation or licensing
of any domestic nuclear generation facility. An incident at a nuclear facility anywhere in the world also could cause the NRC to impose additional conditions or other requirements on the industry, which could increase costs and result in additional capital expenditures. » The operating licenses for NextEra Energy's and FPL's nuclear generation facilities extend through at least 2030. If any of NextEra Energy's or FPL's nuclear generation units cannot be operated through the end of their respective operating licenses, NextEra Energy or FPL may be required to increase depreciation rates, incur impairment charges and accelerate future decommissioning expenditures, which could adversely affect their financial results. » Terrorist threats and increased public scrutiny of nuclear generation facilities could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict. NextEra Energy's and FPL's operating results could suffer if they do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, generation, transmission, distribution or other facilities on schedule or within budget. » NextEra Energy and FPL may incur significant costs for development of projects, including, but not limited to, preliminary engineering, permitting, legal and other expenses before it can be established whether a project is feasible, economically attractive, capable of being financed or, in some cases, approved for regulatory recoveries. The ability of NextEra Energy and FPL to complete construction of, and capital improvement projects for, their generation, transmission, distribution, gas infrastructure and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms, delays in obtaining or renewing necessary licenses, permits, rights-of-way and other approvals, disputes involving contractors, labor organizations, land owners and other third parties, negative publicity, transmission interconnection issues and other factors or failures. If any development project or construction or capital improvement project is not completed or is delayed or subject to cost overruns, NextEra Energy's and FPL's operational and financial results may be adversely affected. In any such event, among other matters, NextEra Energy and FPL could be subject to additional costs, which, in some cases, may not be recoverable through regulatory mechanisms, and could result in delay or termination payments and other damages under committed contracts, loss of tax credits and the write-off of their investment in the project. The operation and maintenance of power generation, transmission and distribution facilities involve significant risks that could adversely affect the financial results of NextEra Energy and FPL. » The operation and maintenance of power generation, transmission and distribution facilities involve many risks, such as those identified elsewhere in these risk factors and those arising due to: risks of start-up operations; failures in the supply, availability or transportation of fuel; the impact of unusual or adverse weather conditions, including, but not limited to, natural disasters such as hurricanes, floods, earthquakes and droughts; performance below expected or contracted levels of output or efficiency; breakdown or failure of equipment, transmission and distribution lines or pipelines; availability of replacement equipment; risks of human injury from energized equipment; availability of adequate water resources and ability to satisfy water discharge requirements; inability to properly manage or mitigate known equipment defects throughout NextEra Energy's and FPL's generation fleets and transmission and distribution systems; use of new or unproven technology; and dependence on a specific fuel source. The occurrence of any of these effects or events could result in, among other matters, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines, replacement equipment costs or an obligation to purchase or generate replacement power at potentially higher prices to meet contractual obligations. Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses. Breakdown or failure of an operating facility of NextEra Energy, for example, may prevent NextEra Energy from performing under applicable power sales agreements which, in some situations, could result in termination of the agreement or subject NextEra Energy to liability for liquidated damages. The operation and maintenance of NextEra Energy's gas infrastructure and power transmission businesses also are subject to many of the foregoing risks or substantially similar risks. NextEra Energy and FPL are subject to operating risks associated with their natural gas and oil storage and pipeline infrastructure, and the use of such fuels in their generation facilities. » NextEra Energy's and FPL's operations are subject to operating risks incident to handling, storing, transporting and consuming natural gas, natural gas liquids and oil including, but not limited to, adverse weather
conditions, explosions, pollution, release of toxic substances, fires and other hazards, any of which could result in damage to or destruction of their facilities and other property or human injury. If any of these events were to occur, NextEra Energy and FPL could suffer substantial losses. Moreover, as a result of any such event, NextEra Energy and FPL may be from time to time a defendant in related legal proceedings. As a result, NextEra Energy's and FPL's financial results and liquidity could be materially adversely affected if a significant event occurs that is not fully covered by insurance. NextEra Energy's competitive energy business is subject to development and operating risks that could limit the revenue growth of this business and have other negative effects on NextEra Energy's financial results. » To operate successfully in the competitive wholesale energy markets, NextEra Energy must, among other things, efficiently develop and operate its generating assets, procure adequate supplies of fuel and associated transportation at acceptable prices, successfully and timely complete project restructuring activities, maintain the qualifying facility status of certain projects and complete its energy deliveries in a timely manner. Its ability to do so is subject to a variety of risks. In addition to risks such as those identified elsewhere in these risk factors, risks that specifically affect NextEra Energy's success in competitive wholesale markets and in the gas infrastructure business include: NextEra Energy may face increased competition, including, but not limited to, from other and new sources of power generation, excess generation capacity and shifting demand for power, legal and regulatory developments and general economic conditions. Risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project agreements may impede development activities. There can be significant volatility in market prices for fuel, electricity and renewable and other energy commodities. NextEra Energy's inability or failure to hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures could significantly impair NextEra Energy's financial results. A portion of NextEra Energy's power generation facilities operate wholly or partially without long-term power purchase agreements. As a result, power from these facilities is sold on the spot market or on a short term contractual basis, which may increase the volatility of NextEra Energy's financial results. NextEra Energy depends upon power transmission and natural gas transportation facilities owned and operated by others. If transmission or transportation of sufficient power or natural gas is unavailable or disrupted, NextEra Energy's ability to sell and deliver its wholesale power or natural gas may be limited. NextEra Energy's competitive energy business is dependent on continued public policy support and governmental support for renewable energy, particularly wind and solar projects. » NextEra Energy's competitive energy business, NextEra Energy Resources, LLC (NextEra Energy Resources), depends heavily on government policies that support renewable energy and enhance the economic feasibility of developing wind and solar energy projects. The federal government, a majority of the 50 U.S. states and portions of Canada and Spain provide incentives, such as tax incentives, RPS or feed-in tariffs, that support the sale of energy from renewable sources, such as wind and solar energy. The applicable legislation often grants the relevant state public utility commission the ability to reduce electric supply companies' obligations to meet the requirements in specified circumstances. Any reduction or elimination of existing supportive policies, including, but not limited to, RPS or feed-in tariffs, and ultimately any failure to renew or increase existing supportive policies, could result in less demand for generation from NextEra Energy's wind and solar energy projects. » The American Recovery and Reinvestment Act of 2009, as amended, includes, among other things, provisions that allow companies building wind facilities the option to choose among the following three investment cost recovery mechanisms: (1) production tax credits which were extended for wind facilities placed in service prior to 2013, (2) investment tax credits (ITCs) of 30% of the cost for qualifying wind facilities placed in service prior to 2013, or (3) an election to receive a cash grant of 30% of the cost of qualifying wind facilities placed in service in 2009, 2010 or 2011, or if construction began prior to December 31, 2011, and the wind facility is placed in service prior to 2013. An election to receive a cash grant of 30% in lieu of the 30% ITC also applies to the cost of qualifying solar facilities placed in service in either 2009, 2010 or 2011, or if construction began prior to December 31, 2011, and the solar facility is placed in service prior to 2017. In order for NextEra Energy to continue to economically develop wind and solar energy projects in the future, it will need to utilize the investment cost recovery mechanisms currently available as well as requiring similar public policy support in the future. NextEra Energy and FPL are subject to credit and performance risk from customers, counterparties and vendors. » NextEra Energy and FPL are exposed to risks associated with the creditworthiness and performance of their customers, hedging counterparties and vendors under contracts for the supply of equipment,
materials, fuel and other goods and services required for their business operations and for the construction and operation of, and for capital improvements to, their facilities. Adverse conditions in the energy industry or the general economy, as well as circumstances of individual customers, counterparties and vendors, may affect the ability of some customers, counterparties and vendors to perform as required under their contracts. If any counterparty or vendor fails to fulfill its contractual obligations, NextEra Energy and FPL may need to make arrangements with other counterparties or vendors, which could result in higher costs, untimely completion of power generation facilities and other projects, and/ or a disruption of their operations. If a defaulting counterparty is in poor financial condition, NextEra Energy and FPL may not be able to recover damages for any contract breach. NextEra Energy's and FPL's financial results may continue to be negatively affected by slower customer growth and customer usage. » NextEra Energy's and FPL's results of operations are affected by the growth in customer accounts and by customer usage, each of which directly influences the demand for electricity and the need for additional power generation and power delivery facilities. A lack of growth or slower growth in the number of retail customers or in non-weatherrelated customer usage, such as that which has occurred over the past several years, could adversely affect NextEra Energy's and FPL's results of operations. Customer growth and customer usage are affected by a number of factors outside the control of NextEra Energy and FPL, such as mandated energy efficiency measures, demand-side management goals, and economic and demographic conditions, such as population, job and income growth, housing starts and new business formation. NextEra Energy's and FPL's financial results may also be adversely affected by FPL's ability to negotiate or renegotiate franchise agreements on acceptable terms with municipalities and counties in Florida. As a result, NextEra Energy and FPL may make, but not fully realize the anticipated benefits from, significant investments and expenditures, which could adversely affect their financial results. NextEra Energy's and FPL's financial results are subject to risks associated with weather conditions, such as the impact of severe weather. » NextEra Energy's and FPL's financial results can be negatively affected by changes in the weather. Weather conditions directly influence the demand for electricity and natural gas, affect the price of energy and energyrelated commodities, and can affect the production of electricity at power generating facilities, including, but not limited to, wind, solar and hydropowered facilities. For example, the level of wind resource affects the results of operations of wind generating facilities. Since the levels of wind, solar and hydro resources are variable and difficult to predict, NextEra Energy's results of operations for individual wind, solar and hydro facilities vary or may vary significantly from period to period depending on the level of available resources. To the extent that resources are not available at planned levels, the returns from these facilities may be less than expected. » In addition, NextEra Energy's and FPL's financial results would be affected by the impact of severe weather, such as hurricanes, floods and earthquakes, which can be destructive and cause power outages and property damage, reduce revenue, affect fuel supply, and require NextEra Energy and FPL to incur additional costs to restore service and repair damaged facilities. As a company that provides electric service throughout most of the east and lower west coasts of Florida, FPL operates in an area that historically has been more prone to severe weather events, such as hurricanes. A disruption or failure of electric generation, transmission or distribution systems or natural gas production, transmission, storage or distribution systems in the event of a hurricane, tornado, or other severe weather event, or otherwise, could prevent NextEra Energy and FPL from operating their businesses in the normal course and could result in any of the adverse consequences described above. At FPL and other regulated businesses of NextEra Energy, recovery of costs to restore service and repair damaged facilities is or may be subject to regulatory approval, and any determination by the regulator not to permit timely and full recovery of the costs incurred would result in a negative financial impact on NextEra Energy and FPL. Disruptions, uncertainty or volatility in the credit and capital markets may negatively affect NextEra Energy's and FPL's ability to fund their liquidity and capital needs and to meet their growth objectives, and can also adversely affect the results of operations and financial condition of NextEra Energy and FPL and exert downward pressure on the market price of NextEra Energy's common stock. » NextEra Energy and FPL rely on access to capital and credit markets as significant sources of liquidity for capital requirements and other operations requirements that are not satisfied by operating cash flows. Disruptions, uncertainty or volatility in those capital and credit markets, such as conditions that have existed in the recent past, could increase NextEra Energy's and FPL's cost of capital. If NextEra Energy or FPL is unable to access regularly the capital and credit markets on terms that are reasonable, it may have to delay raising capital, issue shorter-term securities and incur an unfavorable cost of capital, which, in turn, could adversely affect its ability to grow its businesses and could contribute to lower earnings and reduced financial flexibility. The market price and trading volume of NextEra Energy's common stock are subject to fluctuations as a result of, among other factors, general stock market
conditions and changes in market sentiment regarding the operations, business, growth prospects and financing strategies of NextEra Energy and its subsidiaries. » Although NextEra Energy's competitive energy subsidiaries have used non-recourse or limited-recourse, project-specific financing in the past, market conditions and other factors could adversely affect the future availability of such financing. The inability of NextEra Energy's subsidiaries to access the capital and credit markets to provide project-specific financing for electric-generating and other energy facilities on favorable terms, whether because of disruptions or volatility in those markets or otherwise, could necessitate additional capital raising or borrowings by NextEra Energy and/or NextEra Energy Capital Holdings, Inc. (Capital Holdings), in the future. » The inability of subsidiaries that have existing project-specific financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default which, if not cured or waived, might result in the specific project, and potentially in some limited instances its parent companies, being required to repay the associated debt or other borrowings earlier than otherwise anticipated, and if such repayment were not made, the lenders or security holders would generally have rights to foreclose against the project assets and related collateral, any of which actions could negatively affect NextEra Energy's financial results, as well as the availability or terms of future financings for NextEra Energy or its subsidiaries. NextEra Energy's, Capital Holdings' and FPL's inability to maintain their current credit ratings may adversely affect NextEra Energy's and FPL's liquidity, limit the ability of NextEra Energy and FPL to grow their businesses, and increase interest costs, while the liquidity of the companies also could be impaired by the inability of their credit providers to maintain their current credit ratings or to fund their credit commitments. » The inability of NextEra Energy, Capital Holdings and FPL to maintain their current credit ratings could adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, could impact NextEra Energy's and FPL's ability to grow their businesses and service indebtedness and repay borrowings, and would likely increase their interest costs. Some of the factors that can affect credit ratings are cash flows, liquidity, the amount of debt as a component of total capitalization, and political, legislative and regulatory actions. There can be no assurance that one or more of the ratings of NextEra Energy, Capital Holdings and FPL will not be lowered or withdrawn entirely by a rating agency. » The inability of NextEra Energy's, Capital Holdings' and FPL's credit providers to maintain credit ratings acceptable under various agreements, or to fund their credit commitments, could require NextEra Energy, Capital Holdings or FPL, among other things, to renegotiate requirements in agreements, find an alternative credit provider with acceptable credit ratings to meet funding requirements, or post cash collateral. The use of derivative contracts by NextEra Energy and FPL in the normal course of business could result in financial losses or the payment of margin cash collateral that could adversely affect their financial results and liquidity. » NextEra Energy and FPL use derivative instruments, such as swaps, options, futures and forwards, some of which are traded in the over-thecounter (OTC) markets or on exchanges, to manage their commodity and financial market risks, and for NextEra Energy to engage in trading and marketing activities. NextEra Energy could recognize financial losses as a result of volatility in the market values of these derivative instruments or if a counterparty fails to perform or make payments under these derivative instruments. NextEra Energy also could suffer a reduction in operating cash flows as a result of the requirement to post margin cash collateral. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management's judgment or use of estimates. Although NextEra Energy and FPL execute transactions in derivative instruments on either recognized exchanges or via the OTC markets, depending on the most favorable credit and market execution factors, there is greater volatility and less liquidity in transactions executed in OTC markets and, as a result, NextEra Energy and FPL may not be able to execute such transactions in times of market volatility. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these derivative instruments. In addition, FPL's use of such instruments could be subject to prudence challenges and, if found imprudent, could result in disallowances of cost recovery for such use by the FPSC. » NextEra Energy provides full energy and capacity requirement services, which include, for example, load-following services and various ancillary services, primarily to distribution utilities to satisfy all or a portion of such utilities' power supply obligations to their customers. The supply costs for these transactions may be affected by a number of factors, including, but not limited to, events that may occur after NextEra Energy has committed to supply power, such as weather conditions, fluctuating prices for energy and ancillary services, and the ability of the distribution utilities' customers to elect to receive service from competing suppliers. If the supply costs are not favorable, NextEra Energy's operating costs could increase and adversely affect its results of operations. » NextEra Energy is an active participant in energy markets. The liquidity of regional energy markets is an important factor in the company's ability to manage risks in these operations. Over the past several years, other
market participants have ceased or significantly reduced their activities in energy markets as a result of several factors, including, but not limited to, government investigations, changes in market design, and deteriorating credit quality. Liquidity in the energy markets can be adversely affected by price volatility, restrictions on the availability of credit, and other factors. As a result, reductions in liquidity may restrict the ability of NextEra Energy to manage its risks, and this could negatively affect NextEra Energy's financial results. » NextEra Energy and FPL have hedging and trading procedures and associated risk-management tools, such as separate but complementary financial, credit, operational, compliance and legal reporting systems, internal controls, management review processes and other mechanisms, that may not work as planned. Risk-management tools and metrics such as daily value at risk, earnings at risk, stop loss limits and liquidity guidelines are based on historical price movements. If price movements significantly or persistently deviate from historical behavior, the riskmanagement tools may not protect against significant losses. As a result of these and other factors, NextEra Energy and FPL cannot predict with precision the impact that risk-management decisions may have on their financial results and liquidity. NextEra Energy's and FPL's financial results and liquidity could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of its provisions regarding the regulation of OTC financial derivatives and make them applicable to NextEra Energy and FPL. » The Dodd-Frank Act was enacted into law in July 2010 which, among other things, provides for the regulation of the OTC derivatives market. While the legislation is broad and detailed, substantial portions of the legislation require implementing rules to be adopted by federal governmental agencies including, but not limited to, the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission. NextEra Energy and FPL cannot predict the final rules that will be adopted to implement the OTC derivatives market provisions of the Dodd-Frank Act. Those rules could negatively affect NextEra Energy's and FPL's ability to hedge their commodity and interest rate risks, which could have a material adverse effect on NextEra Energy's and FPL's financial results. The rules also could require NextEra Energy Resources to restructure part of its energy marketing and trading operations or to discontinue certain portions of its business. In addition, if the rules require NextEra Energy and FPL to post cash collateral with respect to swap transactions, NextEra Energy's and FPL's liquidity could be materially adversely affected, and their ability to enter into OTC derivatives to hedge commodity and interest rate risks could be significantly limited. Reporting and compliance requirements of the rules also could significantly increase operating costs and expose NextEra Energy and FPL to penalties for noncompliance. NextEra Energy's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry. » NextEra Energy is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry in general. In addition, NextEra Energy may be unable to identify attractive acquisition opportunities at favorable prices and to complete and integrate them successfully and in a timely manner. NextEra Energy may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to NextEra Energy or if NextEra Energy is required to perform under guarantees of obligations of its subsidiaries. » NextEra Energy is a holding company and, as such, has no material operations of its own. Substantially all of NextEra Energy's consolidated assets are held by subsidiaries. NextEra Energy's ability to meet its financial obligations, including, but not limited to, its guarantees, and to pay dividends on its common stock is primarily dependent on the subsidiaries' net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends or to repay funds to NextEra Energy. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can fund NextEra Energy. NextEra Energy's subsidiaries are separate legal entities and have no obligation to provide NextEra Energy with funds for its payment obligations. In addition, the dividend-paying ability of some of the subsidiaries is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements. The future enactment of laws or regulations also may prohibit or restrict the ability of NextEra Energy's subsidiaries to pay upstream dividends or to repay funds. NextEra Energy guarantees many of the obligations of its consolidated subsidiaries, other than FPL, through guarantee agreements with Capital Holdings. These guarantees may require NextEra Energy to provide substantial funds to its subsidiaries or their creditors or counterparties at a time when NextEra Energy is in need of liquidity to fund its own obligations or to pay dividends. In addition, in the event of a subsidiary's liquidation or reorganization, NextEra Energy's right to participate in a distribution of assets is subject to the prior claims of the subsidiary's creditors.
Changes in tax laws, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could adversely affect NextEra Energy's and FPL's financial results, financial condition and liquidity. » NextEra Energy's and FPL's provision for income taxes and reporting of tax-related assets and liabilities requires significant judgments and the use of estimates. Amounts of tax-related assets and liabilities involve judgments and estimates of the timing and probability of recognition of income, deductions and tax credits, including, but not limited to, estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax credit carryforwards. Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, regulations and interpretations, financial condition and results of operations of NextEra Energy and its subsidiaries, including, but not limited to, FPL, as well as the resolution of audit issues raised by taxing authorities. Ultimate resolution of income tax matters may result in material adjustments to tax-related assets and liabilities which could negatively affect NextEra Energy's and FPL's financial results, financial condition and liquidity. NextEra Energy's and FPL's retail businesses are subject to the risk that sensitive customer data may be compromised, which could result in an adverse impact to their reputation and/or the financial results of the retail business. » NextEra Energy's and FPL's retail businesses require access to sensitive customer data in the ordinary course of business. NextEra Energy's and FPL's retail businesses may also need to provide sensitive customer data to vendors and service providers who require access to this information in order to provide services, such as call center services, to the retail businesses. If a significant breach occurred, the reputation of NextEra Energy and FPL could be adversely affected, customer confidence could be diminished, customer information could be used for identity theft purposes, NextEra Energy and FPL would be subject to costs associated with the breach and/or NextEra Energy and FPL could be subject to fines and legal claims, any of which may have a negative impact on the businesses and/or NextEra Energy's and FPL's financial results. A failure in NextEra Energy's and FPL's operational systems or infrastructure, or those of third parties, could impair their liquidity, disrupt their businesses, result in the disclosure of confidential information and adversely affect their financial results. » NextEra Energy's and FPL's businesses are highly dependent on their ability to process and monitor, on a daily basis, a very large number of transactions, many of which are highly complex, and cross numerous and diverse markets. Due to the size, scope and geographical reach of NextEra Energy's and FPL's businesses, and due to the complexity of the process of power generation, transmission and distribution, the development and maintenance of NextEra Energy's and FPL's operational systems and infrastructure is challenging. NextEra Energy's and FPL's operating systems and facilities may fail to operate properly or become disabled as a result of events that are either within, or wholly or partially outside, their control, such as operator error, severe weather or terrorist activities. Any such failure or disabling event could adversely affect NextEra Energy's and FPL's ability to process transactions and provide services, and their financial results and liquidity. » NextEra Energy and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including, but not limited to, integrating the modified, new or replacement system with existing systems and processes, implementing associated changes in accounting procedures and controls, and ensuring that data conversion is accurate and consistent. Any disruptions or deficiencies in existing information systems, or disruptions, delays or deficiencies in the modification or implementation of new information systems, could result in increased costs, the inability to track or collect revenues, the diversion of management's and employees' attention and resources, and could negatively impact the effectiveness of the companies' control environment, and/or the companies' ability to timely file required regulatory reports. » NextEra Energy and FPL also face the risks of operational failure, termination, or capacity constraints of third parties, including, but not limited to, those who provide power transmission and natural gas transportation services. Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt NextEra Energy's and FPL's businesses, or the businesses of third parties, may impact the operations of NextEra Energy and FPL in unpredictable ways and could adversely affect NextEra Energy's and FPL's financial results and liquidity. » NextEra Energy and FPL are subject to the potentially adverse operating and financial effects of terrorist acts and threats, as well as cyber attacks and other disruptive activities of individuals or groups. NextEra Energy's and FPL's generation, transmission and distribution facilities, fuel storage facilities, information technology systems and other infrastructure facilities and systems and physical assets, could be direct targets of, or indirectly affected by, such activities. Terrorist acts or other similar events could harm NextEra Energy's and FPL's businesses by limiting their ability to generate, purchase or transmit power and by delaying their development and construction of new generating facilities and capital improvements to
existing facilities. These events, and governmental actions in response, could result in a material decrease in revenues and significant additional costs to repair and insure NextEra Energy's and FPL's assets, and could adversely affect NextEra Energy's and FPL's operations by contributing to disruption of supplies and markets for natural gas, oil and other fuels. They could also impair NextEra Energy's and FPL's ability to raise capital by contributing to financial instability and lower economic activity. » NextEra Energy and FPL operate in a highly regulated industry that requires the continued operation of sophisticated information technology systems and network infrastructure. Despite NextEra Energy's and FPL's implementation of security measures, all of their technology systems are vulnerable to disability, failures or unauthorized access due to such activities. If NextEra Energy's or FPL's technology systems were to fail or be breached and be unable to recover in a timely way, NextEra Energy and FPL would be unable to fulfill critical business functions, and sensitive confidential and other data could be compromised, which could have a material adverse effect on NextEra Energy's and FPL's financial results. » The implementation of security guidelines and measures and maintenance of insurance, to the extent available, addressing such activities could increase costs. These types of events could materially adversely affect NextEra Energy's and FPL's financial results. In addition, these types of events could require significant management attention and resources, and could adversely affect NextEra Energy's and FPL's reputation among customers and the public. » A disruption of the regional electric transmission grid, natural gas pipeline infrastructure or other fuel sources, could negatively impact NextEra Energy's and FPL's businesses. Because generation, transmission systems and natural gas pipelines are part of an interconnected system, NextEra Energy and FPL face the risk of possible loss of business due to a disruption caused by the impact of an event on the interconnected system (such as severe weather or a generator or transmission facility outage, pipeline rupture, or a sudden and significant increase or decrease in wind generation) within NextEra Energy's and FPL's systems or within a neighboring system. Any such disruption could have a material adverse effect on NextEra Energy's and FPL's financial results. The ability of NextEra Energy and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NextEra Energy's and FPL's insurance coverage may not provide protection against all significant losses. » The ability of NextEra Energy and FPL to obtain insurance, as well as the cost and coverage of such insurance, could be affected by developments affecting their businesses, as well as by international, national, state or local events, as well as the financial condition of insurers. Insurance coverage may not continue to be available at all or at rates or on terms similar to those presently available to NextEra Energy and FPL. A loss for which NextEra Energy and FPL are not fully insured could materially and adversely affect their financial results. NextEra Energy's and FPL's insurance may not be sufficient or effective under all circumstances and against all hazards or liabilities to which the companies may be subject. The businesses and financial results of NextEra Energy and FPL could be negatively affected by the lack of a qualified workforce, work strikes or stoppages and increasing personnel costs. » NextEra Energy and FPL may not be able effectively and profitably to obtain new customers, or grow their customer base, service existing customers and meet their other business plan goals if they do not attract and retain a qualified workforce. The lack of a qualified workforce, including, for example, the loss or retirement of key executives and other employees, may adversely affect service and productivity and contribute to higher training and safety costs. Over the next several years, a significant portion of NextEra Energy's and FPL's workforce, including, but not limited to, many workers with specialized skills maintaining and servicing the nuclear generation facilities and electrical infrastructure, will be eligible to retire. Such highly skilled individuals may not be able to be replaced quickly due to the technically complex work they perform. Personnel costs also may increase due to inflationary or competitive pressures on payroll and benefits costs and revised terms of collective bargaining agreements with union employees. Employee strikes or work stoppages could disrupt operations and lead to a loss of customers and revenue. Certain of NextEra Energy's and FPL's investments are subject to changes in market value and other risks, which may adversely affect NextEra Energy's and FPL's liquidity and financial results. » NextEra Energy and FPL are required to maintain decommissioning funds to satisfy their future obligations to decommission their nuclear power plants. In addition, NextEra Energy sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NextEra Energy and its subsidiaries. A decline in the market value of the assets held in the decommissioning funds or in the defined benefit pension plan due to poor investment performance or other factors may increase the funding requirements for these obligations. Moreover, NextEra Energy's and FPL's defined benefit pension plan is sensitive to changes in interest rates, since, as interest rates decrease, the funding liabilities increase, potentially increasing benefits costs and funding requirements. Any increase in benefits costs or funding requirements may have an adverse effect on NextEra Energy's and FPL's liquidity and financial results.
» NextEra Energy holds other investments where changes in the fair value affect NextEra Energy's financial results. In some cases there may be no observable market values for these investments, requiring fair value estimates to be based on other valuation techniques. This type of analysis requires significant judgment and the actual values realized in a sale of these investments could differ materially from those estimated. A sale of an investment below previously estimated value, or other decline in the fair value of an investment, could result in losses or the write-off of such investment, and may have an adverse effect on NextEra Energy's financial results. Increasing costs associated with health care plans may adversely affect NextEra Energy's and FPL's financial results. » The costs of providing health care benefits to employees and retirees have increased substantially in recent years. NextEra Energy and FPL believe that their employee benefit costs, including, but not limited to, costs related to health care plans for employees and former employees, will continue to rise. The increasing costs and funding requirements associated with NextEra Energy's and FPL's health care plans may adversely affect the companies' financial results. The risks described herein are not the only risks facing NextEra Energy and FPL. Additional risks and uncertainties not currently known to NextEra Energy or FPL, or that are currently deemed to be immaterial, also may materially adversely affect NextEra Energy's or FPL's business, financial condition, future financial results and/or liquidity.
NextEra Energy 2010-11 Sustainability Highlights-At-A-Glance
No. 1 provider of renewable energy in North America from both the wind and the sun. Recorded our lowest air emissions rates ever in 2010. Since 1990, our generation fleet has grown 249 percent, but our SO2 emissions rate declined 90 percent, our NOx emissions rate declined 91 percent, and our CO2 emissions rate declined 34 percent. Produced 96 percent of our electricity in 2010 using clean natural gas or zero-emission nuclear power and renewables. Largest generator of wind-powered electricity in North America in 2010. Largest generator of utility-scale solar power in United States in 2010. Using hybrid-electric vehicles saved more than 538,000 gallons of fuel in 2010 - the equivalent of taking more than 900 cars off the road. Our 2010 water withdrawal rate of 9,900 gal/MWh was lowest rate among all participants at 2010 Utility Environmental Benchmarking Forum. Recorded 16 successful crocodile nests and 196 hatchlings in 2010 at FPL's Turkey Point power plant. Provided 8,000 manatee brochures and bumper stickers to the public to promote manatee protection and conservation. In 2010, NextEra Energy Resources was first wind producer to put state-of-the-art acoustic monitor on a turbine to measure bat activity at an operating wind farm. At our world headquarters in Florida, we achieved the prestigious Gold-level Leadership in Energy and Environmental Design (LEED) certification in 2010 for Existing Buildings: Operations & Maintenance. Refurbished more than $2.2 million in hardware and returned it to inventory. Processed 691,082 pounds of paper and cardboard for recycling. NextEra Energy was named to the Dow Jones Sustainability Index of leading companies in North America for corporate sustainability in 2009 and 2010. In 2010, FPL was recognized by the Southeastern Electric Exchange with its Chairman's Award for outstanding performance in constructing the largest photovoltaic power plant in the United States. For the ninth consecutive year, FPL in 2011 received the Tree Line USA award for its vegetation management practices. In Fortune magazine's 2011 list of "World's Most Admired Companies," NextEra Energy tied for first place as the most admired company in the utility industry. This is the fifth consecutive year NextEra Energy has ranked in the No. 1 spot, an industry record. In 2011, NextEra Energy was also named by Fortune as one of the top 10 companies worldwide for social responsibility. The nation's leading chain and multi-site businesses recognized FPL with EEI's 2011 National Key Accounts Award for Outstanding Customer Service. The Southern Florida Minority Supplier Development Council awarded FPL its 2010 Local Corporation of the Year Award. In 2010, FPL received EEI's Supplier Diversity Vendor Opportunity Award. In 2011, EnergyBiz magazine awarded Chairman and CEO Lew Hay its "CEO of the Year" Award, recognizing the value proposition FPL offers customers in the form of low bills, high reliability and a clean power generating fleet. Ernst & Young presented Chairman and CEO Lew Hay its "Florida Lifetime Achievement Award" in June 2010 at its Entrepreneur of the Year ceremony.
What are we smiling about?
Our Communities and Our Employees
In 2011, more than 400 employees and their families kicked off Power to Care Week by undertaking 12 community projects in five counties across Florida. In 2010 and 2011, more than 1,500 FPL employees raised nearly $150,000 to battle breast cancer and support Komen for the Cure activities in West Palm Beach, Orlando, Fort Myers and Miami. Employees and their families dedicated more than 20,000 hours of time in 2010, resulting in more than 100 Dollars for Doers grants to community groups. Supported science, technology, engineering and math (STEM) education in Florida using solar education in our schools. Starting in spring 2010, nine schools in Alabama, South Carolina, Kansas, Oklahoma and Texas each received a $2,000 grant to provide college scholarships for students. Completed 20,836 corporate training courses in 2010 through NextEra University. In 2010, FPL's Community Outreach Team delivered 159 free and informative seminars to business and residential customers across Florida. Employees and their family members made more than 20,000 visits to our on-site health centers in 2010. In 2010, safety hazard assessments were completed by 75 percent of employees. More than 3,800 employees received EAP counseling services in 2010, while the company provided 138 on-site educational presentations to more than 1,800 employees. NextEra Energy's OSHA 2010 rate of 1.47 in Florida and 0.63 outside of Florida were both lower (better) than the 2010 industry average of 1.82 reported by the EEI. Corporate Responsibility magazine named NextEra Energy one of the 100 Best Corporate Citizens in the United States for 2010. In 2010, FPL received the prestigious ServiceOne Award for exceptional customer service, the only utility to win this award seven times. NextEra Energy ranks in the top 10 among companies worldwide for social responsibility, according to the 2011 "World's Most Admired Companies" report released by Fortune magazine. For the fifth consecutive year, in 2011 NextEra Energy was named one of the World's Most Ethical Companies by Ethisphere magazine. Honored as a "Best Employer for Healthy Lifestyles" in 2011 by National Business Group on Health for innovative health-promotion programs. Named one of the nation's top 60 "Diversity Elite" companies by HispanicBusiness magazine in 2010.
every day, the 15,000 employees of nextera energy, inc., Florida power & light Company and nextera energy Resources focus on excellence. the results speak for themselves.
Our Customers and Our Business
FPL's typical residential customer bill is the lowest in Florida and more than 20 percent below the national average. FPL delivered its customers 99.98 percent service reliability in 2010. Delivered total shareholder return of 48 percent for five years ending Dec. 31, 2010, outpacing both S&P 500 Index's 12 percent and S&P Electric Utilities Index's 20 percent. More than 150 free energy-efficiency upgrades were made to homes of low-income families in 2010. More than 250 families have been helped with foreclosure counseling since NextEra Energy partnered with Legal Aid. Provided FPL grant to Florida Council on Aging to support advocacy efforts on behalf of seniors and community aging programs. In Florida, NextEra Energy was the No. 1 taxpayer in 2010 with more than $1 billion in taxes paid and a leading investor with $2.5 billion in spending on capital projects. From Oct. 1, 2009, through Sept. 30, 2010, small firms doing business with NextEra Energy in Florida benefited from more than $114 million in contracts, minority-owned businesses nearly $44 million, and women-owned businesses $38 million.
Fortune magazine "Most Admired"
no. 1 RankinG oveRall FoR Most aDMiReD aMonG eleCtRiC anD Gas utilities FoR tHe FiFtH ConseCutive yeaR RankeD in tHe top 10 CoMpanies woRlDwiDe FoR soCial Responsibility
NextEra Energy, Inc. 700 Universe Boulevard Juno Beach, Florida 33408 For more information, go to: www.NextEraEnergy.com www.NextEraEnergyResources.com www.FPL.com