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NextEra Energy, Inc. (FPL) filed Quarterly Report for the period ended 2011-09-30.
Fpl Group Inc. has a market cap of $22.6 billion; its shares were traded at around $0 with a P/E ratio of 18.5. The dividend yield of Fpl Group Inc. stocks is 3.2%.
This is the annual revenues and earnings per share of FPL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FPL.
Highlight of Business Operations:
As permitted by the 2010 rate agreement, retail base revenues collected through the capacity clause included approximately $44 million and $69 million for the three and nine months ended September 30, 2011, respectively, related to the placement in service of West County Energy Center (WCEC) Unit No. 3, which occurred in May 2011. For the three months ended September 30, 2011, a 0.5% increase in the average number of customer accounts increased retail base revenues by approximately $6 million, while a 1.2% decrease in usage per retail customer, reflecting weather and other factors, decreased retail base revenues by approximately $19 million. For the nine months ended September 30, 2011, a 0.6% increase in the average number of customer accounts increased retail base revenues by approximately $19 million, while a 1.7% decrease in usage per retail customer, reflecting weather and other factors, decreased retail base revenues by approximately $78 million. In addition, a base rate increase pursuant to an FPSC order which became effective March 1, 2010, increased retail base revenues for the nine months ended September 30, 2011 by approximately $8 million. The usage per retail customer data for the three and nine months ended September 30, 2011 includes two extra days of sales after adjusting for a change from a fiscal month to a calendar month.FPL uses a risk management fuel procurement program which was approved by the FPSC. The FPSC reviews the program activities and results for prudence on an annual basis as part of its annual review of fuel costs. The program is intended to manage fuel price volatility by locking in fuel prices for a portion of FPL's fuel requirements. The current regulatory asset for the change in fair value of derivative instruments used in FPL's fuel procurement program was approximately $263 million and $236 million at September 30, 2011 and December 31, 2010, respectively. Pursuant to an FPSC order, FPL was required to refund, in the form of a one-time credit to retail customers' bills, the 2009 year-end estimated fuel overrecovery; during the first quarter of 2010, approximately $404 million was refunded to retail customers. At December 31, 2009, approximately $356 million of retail fuel revenues were overrecovered, the reversal of which is reflected as net repayment of previously deferred retail fuel revenues in the table above. The difference between the refund and the December 31, 2009 overrecovery is being collected from retail customers during 2011. The decrease in fuel revenues for the three months ended September 30, 2011 reflects approximately $23 million related to a lower average fuel factor and $11 million related to lower energy sales. The increase in fuel revenues for the nine months ended September 30, 2011 reflects the absence of the $404 million refund partly offset by approximately $21 million related to a lower average fuel factor. The decrease from December 31, 2010 to September 30, 2011 in deferred clause and franchise expenses and in deferred clause and franchise revenues was approximately $71 million and positively affected NextEra Energy's and FPL's cash flows from operating activities for the nine months ended September 30, 2011.
Results for the three-month period from NextEra Energy Resources' existing asset portfolio reflect unfavorable wind results of approximately $18 million due to a lower wind resource and unfavorable prices primarily in Texas, partly offset by a change in estimate of the useful lives of certain equipment across the wind portfolio and the impact of lower priced hedges at Seabrook of $12 million. These reductions were substantially offset by favorable results at Point Beach of $19 million due primarily to higher gains on its decommissioning funds, higher generation due to a power uprate which was completed in June 2011 and the absence of an unplanned outage that occurred in 2010. In addition, fossil operations in Texas contributed $8 million to NextEra Energy Resources' results for the three-month period benefiting from high market prices in August 2011. Results for the nine-month period from NextEra Energy Resources' existing asset portfolio reflect higher wind results of approximately $84 million due to a higher wind resource, lower depreciation and amortization expense due to a change in estimate of the useful lives of certain equipment across the wind portfolio and $30 million related to the state ITC benefit (see Note 5), partly offset by lower prices, primarily in Texas. In addition, results for the nine-month period were favorably affected by approximately $20 million from higher prices under a new long-term contract for a natural gas-fired project in California, which is currently held for sale, and by higher results at Point Beach of $13 million primarily due to higher gains on its decommissioning funds and a higher contract price. These results were partially offset by lower results at Seabrook of approximately $68 million primarily due to lower priced hedges and an extended refueling outage in 2011. The effect of the change in estimate of useful lives of certain equipment across the wind portfolio for the year ended December 31, 2011 is expected to reduce depreciation and amortization expense by approximately $75 million, increase net income by $44 million and increase basic and diluted earnings per share by approximately $0.11 (see Note 11).
Operating revenues for the three months ended September 30, 2011 decreased $356 million primarily due to lower revenues of approximately $307 million from the existing portfolio and NextEra Energy Power Marketing, LLC (PMI), and unrealized mark-to-market losses of $32 million from non-qualifying hedges compared to $26 million of gains on such hedges in 2010. Operating revenues for the nine months ended September 30, 2011 decreased $629 million primarily due to lower revenues of approximately $650 million at PMI and the existing asset portfolio, due in part to the extended refueling outage at Seabrook and unfavorable market conditions in the New England Power Pool and Electric Reliability Council of Texas regions, and unrealized mark-to-market losses of $13 million from non-qualifying hedges compared to $65 million of gains on such hedges in 2010. These items were partially offset by higher revenues from project additions of approximately $97 million.
NextEra Energy's cash flows from investing activities for the nine months ended September 30, 2011 reflect capital investments, including nuclear fuel purchases, of approximately $2.4 billion by FPL to expand and enhance its electric system and generating facilities to continue to provide reliable service to meet the power needs of present and future customers and investments in independent power projects, including nuclear fuel, of approximately $1.8 billion by NextEra Energy Resources. NextEra Energy's cash flows from investing activities also reflect approximately $596 million of loan proceeds that are restricted for the construction of a solar thermal facility in California and approximately $503 million (comprised of $301 million at NextEra Energy Resources and $202 million at FPL) of cash grants under the Recovery Act, the purchase and sale of restricted securities held in the special use funds, including the reinvestment of fund earnings, as well as other investment activity, primarily at Capital Holdings. NextEra Energy expects to receive additional cash grants under the Recovery Act during 2011. In addition, NextEra Energy Resources expects to receive net cash proceeds of approximately $825 million, after the repayment of debt, transaction costs and working capital and other adjustments, for the sale of five natural gas-fired generating plants which are expected to close in the fourth quarter of 2011.
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