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| 8-K - FORM 8-K DATED OCTOBER 31, 2014 - NEXTERA ENERGY INC | form8k10312014.htm |
Exhibit 99
 | |
NextEra Energy, Inc. Media Line: (561) 694-4442 Oct. 31, 2014 FOR IMMEDIATE RELEASE | |
NextEra Energy reports 2014 third-quarter financial results
• | NextEra Energy delivered strong financial and operating performance |
• | Florida Power & Light Company continued to invest in the business to provide long-term customer benefits |
• | NextEra Energy Resources benefited from the addition of new contracted renewables projects |
JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2014 third-quarter net income attributable to NextEra Energy on a GAAP basis of $660 million, or $1.50 per share, compared to $698 million, or $1.64 per share, in the third quarter of 2013. On an adjusted basis, NextEra Energy’s earnings were $688 million, or $1.55 per share, compared to $607 million, or $1.43 per share, in the third quarter of 2013.
Adjusted earnings for these periods exclude the mark-to-market effects of non-qualifying hedges, as well as the net effect of other than temporary impairments (OTTI) on certain investments and operating results from the Spain solar project. All of these items relate primarily to the business of NextEra Energy Resources, LLC and its affiliated entities.
NextEra Energy’s management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the board of directors, and as an input in determining performance-based compensation under the company’s employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and earnings outlook to analysts and investors. NextEra Energy management believes that adjusted earnings provide a more meaningful representation of NextEra Energy’s fundamental earnings power. The attachments to this news release include a reconciliation of historical adjusted earnings to net income attributable to NextEra Energy, which is the most directly comparable GAAP measure.
“NextEra Energy delivered strong financial and operational performance for the third quarter,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “NextEra Energy Resources delivered excellent adjusted earnings growth, driven by strong contributions from growth in the contracted renewables portfolio. NextEra Energy Resources also had a very strong quarter in terms of new contracted renewables origination and significantly firmed up strong origination prospects for the fourth quarter of this year. FPL also delivered solid results and performed very well operationally. We were pleased that the Florida Supreme Court unanimously affirmed the Florida Public Service Commission’s approval of FPL’s 2012 base rate settlement agreement. This four-year agreement benefits FPL customers by supporting our ability to deliver clean, reliable electricity, while keeping our typical residential customer’s monthly electric bill well below the national average.”
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Florida Power & Light Company
NextEra Energy’s principal rate-regulated utility subsidiary, Florida Power & Light Company, reported third-quarter net income of $462 million, or $1.05 per share, compared to $422 million, or $0.99 per share, for the prior-year quarter.
FPL’s earnings per share growth of approximately 6 percent over the prior-year comparable quarter was driven by continued investment in the business and by growth in wholesale power sales. FPL’s capital expenditures were approximately $670 million in the quarter, and regulatory capital employed grew 5.2 percent over the same quarter of 2013. FPL’s continued investment in the business enhances its customer value proposition that includes high reliability, award-winning customer service, a clean emissions profile and the lowest typical residential customer bill in Florida. Growth in FPL’s wholesale operations added $0.04 per share.
During the quarter, FPL continued to make progress on the Port Everglades Clean Energy Center, which is the third of three combined-cycle natural gas generation modernization projects. Expected to come online in mid-2016, Port Everglades remains on schedule and on budget. During the operating lifetimes of the three new, highly efficient power plants (Cape Canaveral, Riviera Beach and Port Everglades), FPL estimates that customers will save more than $1 billion in fuel and other costs. By modernizing its generation fleet and being more fuel efficient, FPL has saved customers $6.8 billion in fuel costs since 2001. FPL now operates one of the most modern, clean, fuel-efficient generation fleets in the nation.
During the quarter, FPL also continued to invest in its transmission and distribution network to improve its resilience during severe weather such as hurricanes, as well as to provide increased reliability to its customers on a daily basis.
FPL averaged approximately 82,000, or 1.8 percent, more customer accounts during the third quarter of 2014 than in the comparable prior-year quarter. Customer growth increased sales by approximately 1.2 percent over the prior-year comparable quarter, and overall usage grew 1.9 percent. The 12-month average of low-usage accounts fell to 8.0 percent, down from 8.3 percent in September 2013.
These customer metrics are consistent with continued improvement in Florida’s economy. According to the Florida Department of Economic Opportunity, the state’s seasonally adjusted unemployment rate in September 2014 was 6.1 percent, down 0.8 percentage points from a year earlier. The number of jobs in Florida grew by 206,000 positions, or 2.7 percent, compared to a year earlier. Over the long term, the company continues to expect that Florida will experience above-average economic growth.
In a unanimous decision in late August, the Florida Supreme Court affirmed the Florida Public Service Commission’s (PSC) approval of FPL’s 2012 base rate settlement agreement. The court’s decision upheld all aspects of this four-year rate agreement, which was developed and supported by key customer advocacy groups and thoroughly examined by the PSC. FPL’s typical residential customer’s electric monthly bill is approximately 25 percent below the national average and the lowest in Florida for the fifth consecutive year. Beginning in 2015, FPL’s typical residential customer’s electric bill will further decrease by nearly $2 per month.
FPL’s petition with the Florida PSC seeking approval to invest in long-term natural gas supplies remains in progress, with a decision expected by the end of 2014 or in early 2015. If approved, FPL would partner to develop natural gas production wells in the Woodford Shale region in southeastern Oklahoma. While the proposed initial program of up to roughly $200 million of capital investment is modest in size relative to its overall natural gas needs, FPL views the transaction as an important first step in what it expects could become a larger program that
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would further improve the value it delivers to its customers. FPL has also requested that the PSC approve a set of guidelines for subsequent natural gas production projects that would allow the company and, in turn, its customers to take advantage of future beneficial natural gas investment opportunities.
NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a third-quarter contribution to net income attributable to NextEra Energy on a GAAP basis of $204 million, or $0.46 per share, compared to $281 million, or $0.66 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources’ earnings for the third quarter of 2014 were $231 million, or $0.52 per share, compared to $190 million, or $0.45 per share, for the third quarter of 2013.
NextEra Energy Resources’ adjusted earnings per share increased $0.07 year-over-year, or 16 percent, primarily as a result of additional investments in its contracted renewables business. Growth in the contracted renewables portfolio added $0.09 per share, reflecting new wind and solar investments placed into service during or after the third quarter of 2013, while existing assets added $0.01 per share. The customer supply and trading business added $0.03 per share year-over-year. Lower contributions from the gas infrastructure business decreased earnings by $0.03 per share year-over-year. All other factors reduced results by $0.03 per share.
During the quarter, NextEra Energy Resources signed contracts for 445 megawatts (MW) of new contracted renewables projects, adding 91 MW of U.S wind, 50 MW of Canadian wind and 304 MW of U.S. solar. All of the new projects are expected to be in operation by the end of 2016. With these additions and expected fourth-quarter originations in wind and solar, NextEra Energy Resources now expects its U.S. wind development program for 2013 through 2015 to be more than 2,500 MW, its 2013 through 2016 Canadian wind program to be 640 MW and its 2013 through 2016 U.S. solar program to be in the range of 1,600 MW to 1,800 MW.
Corporate and Other
In the third quarter of 2014, Corporate and Other earnings decreased by $0.01 per share, compared to the prior-year quarter, on an adjusted basis, but were flat year-over-year on a GAAP basis.
The company’s natural gas pipeline projects, Sabal Trail Transmission and Florida Southeast Connection, continue to progress well through the development process. Florida Southeast Connection filed its certification application with the Federal Energy Regulatory Commission (FERC) in September 2014, and Sabal Trail expects to file its FERC certification application in November 2014. Both projects expect FERC decisions by year-end 2015, with construction of the proposed interstate pipeline system beginning in 2016 and operations commencing in mid-2017.
During the third quarter of 2014, the company formed the Mountain Valley Pipeline joint venture with EQT Corporation. The joint venture completed a binding open season for the approximately 300-mile Mountain Valley natural gas pipeline project, which is designed to connect the Marcellus and Utica natural gas supply to markets in the U.S. Southeast to support growing demand and to improve reliability.
Outlook
NextEra Energy continues to expect full-year 2014 adjusted earnings per share to be in the range of $5.15 to $5.35. For 2015, the company expects full-year adjusted earnings per share to be in the range of $5.40 to $5.70. NextEra Energy also continues to expect 2016 full-year adjusted earnings per share to be in the range of $5.50 to $6.00.
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NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, as well as net OTTI losses on securities held in NextEra Energy Resources’ nuclear decommissioning funds, none of which can be determined at this time, and operating results from the Spain solar project. Adjusted earnings expectations also exclude the 2014 gain associated with the Maine fossil assets. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; supportive commodity markets; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; access to capital at reasonable cost and terms; no acquisitions or divestitures; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.
As previously announced, NextEra Energy’s third-quarter earnings conference call is scheduled for 9 a.m. ET today. The webcast is available on NextEra Energy’s website by accessing the following link: www.NextEraEnergy.com/investors. The slides and news release accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors, beginning at 7:30 a.m. ET today. A replay will be available for 90 days by accessing the same link as listed above. | |||||
This news release should be read in conjunction with the attached unaudited financial information.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $15.1 billion, approximately 42,500 megawatts of generating capacity, and approximately 13,900 employees in 26 states and Canada as of year-end 2013. Headquartered in Juno Beach, Fla., NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.7 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and 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. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been named No. 1 overall among electric and gas utilities on Fortune’s list of “World’s Most Admired Companies” for eight consecutive years, which is an unprecedented achievement in its industry. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
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Cautionary Statements and Risk Factors That May Affect Future Results
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “may result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “aim,” “potential,” “projection,” “forecast,” “predict,” “goals,” “target,” “outlook,” “should,” “would” or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or an appropriate return on capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory and economic factors on regulatory decisions important to NextEra Energy and FPL; disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions to or elimination of governmental incentives that support renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional taxes or assessments on renewable energy; impact of new or revised laws, regulations or interpretations or other regulatory initiatives on NextEra Energy and FPL; effect on NextEra Energy and FPL of potential regulatory action to broaden the scope of regulation of over-the-counter (OTC) financial derivatives and to apply such regulation to NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations; effect on NextEra Energy and FPL of changes in tax laws and in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to manage properly or hedge effectively the commodity risk within its portfolio; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; increasing costs of health care plans; lack of a qualified workforce or the loss or retirement of key employees; occurrence of work
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strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with NextEra Energy's and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; liability of NextEra Energy and FPL for increased nuclear licensing or compliance costs resulting from hazards, and increased public attention to hazards, posed to their owned nuclear generation facilities; risks associated with outages of NextEra Energy's and FPL's owned nuclear units; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of creditors to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; and effect of disruptions, uncertainty or volatility in the credit and capital markets of the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2013 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary | ||||||||||||||||||
Three Months Ended September 30, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||||
Operating Revenues | $ | 3,315 | $ | 1,242 | $ | 97 | $ | 4,654 | ||||||||||
Operating Expenses | ||||||||||||||||||
Fuel, purchased power and interchange | 1,255 | 292 | 19 | 1,566 | ||||||||||||||
Other operations and maintenance | 414 | 325 | 33 | 772 | ||||||||||||||
Impairment charge | — | — | — | — | ||||||||||||||
Depreciation and amortization | 489 | 275 | 18 | 782 | ||||||||||||||
Taxes other than income taxes and other | 323 | 43 | 5 | 371 | ||||||||||||||
Total operating expenses | 2,481 | 935 | 75 | 3,491 | ||||||||||||||
Operating Income | 834 | 307 | 22 | 1,163 | ||||||||||||||
Other Income (Deductions) | ||||||||||||||||||
Interest expense | (112 | ) | (167 | ) | (37 | ) | (316 | ) | ||||||||||
Benefits associated with differential membership interests - net | — | 23 | — | 23 | ||||||||||||||
Equity in earnings (losses) of equity method investees | — | 39 | (1 | ) | 38 | |||||||||||||
Allowance for equity funds used during construction | 7 | — | — | 7 | ||||||||||||||
Interest income | — | 6 | 12 | 18 | ||||||||||||||
Gains on disposal of assets - net | — | 12 | — | 12 | ||||||||||||||
Gain (loss) associated with Maine fossil | — | — | — | — | ||||||||||||||
Other - net | — | 3 | (5 | ) | (2 | ) | ||||||||||||
Total other deductions - net | (105 | ) | (84 | ) | (31 | ) | (220 | ) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 729 | 223 | (9 | ) | 943 | |||||||||||||
Income Tax Expense (Benefit) | 267 | 15 | (3 | ) | 279 | |||||||||||||
Income (Loss) from Continuing Operations | 462 | 208 | (6 | ) | 664 | |||||||||||||
Gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||||||
Net Income (Loss) | 462 | 208 | (6 | ) | 664 | |||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (4 | ) | — | (4 | ) | ||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 462 | $ | 204 | $ | (6 | ) | $ | 660 | |||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 462 | $ | 204 | $ | (6 | ) | $ | 660 | |||||||||
Adjustments, net of income taxes: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 11 | (1 | ) | 10 | |||||||||||||
Loss (income) from other than temporary impairments losses - net | — | 2 | 2 | 4 | ||||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | — | — | — | ||||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | 14 | — | 14 | ||||||||||||||
Adjusted Earnings (Loss) | $ | 462 | $ | 231 | $ | (5 | ) | $ | 688 | |||||||||
Earnings (Loss) Per Share (assuming dilution) Attributable to NextEra Energy, Inc. | $ | 1.05 | $ | 0.46 | $ | (0.01 | ) | $ | 1.50 | |||||||||
Adjustments: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 0.03 | (0.01 | ) | 0.02 | |||||||||||||
Loss (income) from other than temporary impairments losses - net | — | — | — | — | ||||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | — | — | — | ||||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | 0.03 | — | 0.03 | ||||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 1.05 | $ | 0.52 | $ | (0.02 | ) | $ | 1.55 | |||||||||
Weighted-average shares outstanding (assuming dilution) | 440 | |||||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | ||||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | ||||||||||||||||||
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary | ||||||||||||||||||
Three Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||||
Operating Revenues | $ | 3,020 | $ | 1,281 | $ | 93 | $ | 4,394 | ||||||||||
Operating Expenses | ||||||||||||||||||
Fuel, purchased power and interchange | 1,141 | 280 | 17 | 1,438 | ||||||||||||||
Other operations and maintenance | 443 | 345 | 30 | 818 | ||||||||||||||
Impairment charge | — | — | — | — | ||||||||||||||
Depreciation and amortization | 351 | 242 | 12 | 605 | ||||||||||||||
Taxes other than income taxes and other | 307 | 37 | 4 | 348 | ||||||||||||||
Total operating expenses | 2,242 | 904 | 63 | 3,209 | ||||||||||||||
Operating Income | 778 | 377 | 30 | 1,185 | ||||||||||||||
Other Income (Deductions) | ||||||||||||||||||
Interest expense | (105 | ) | (136 | ) | (47 | ) | (288 | ) | ||||||||||
Benefits associated with differential membership interests - net | — | 37 | — | 37 | ||||||||||||||
Equity in earnings (losses) of equity method investees | — | 21 | 1 | 22 | ||||||||||||||
Allowance for equity funds used during construction | 12 | — | — | 12 | ||||||||||||||
Interest income | 1 | 6 | 13 | 20 | ||||||||||||||
Gains on disposal of assets - net | — | 20 | — | 20 | ||||||||||||||
Gain (loss) associated with Maine fossil | — | — | — | — | ||||||||||||||
Other - net | (1 | ) | 3 | (15 | ) | (13 | ) | |||||||||||
Total other deductions - net | (93 | ) | (49 | ) | (48 | ) | (190 | ) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 685 | 328 | (18 | ) | 995 | |||||||||||||
Income Tax Expense (Benefit) | 263 | 47 | (13 | ) | 297 | |||||||||||||
Income (Loss) from Continuing Operations | 422 | 281 | (5 | ) | 698 | |||||||||||||
Gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||||||
Net Income (Loss) | 422 | 281 | (5 | ) | 698 | |||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | — | — | — | ||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 422 | $ | 281 | $ | (5 | ) | $ | 698 | |||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 422 | $ | 281 | $ | (5 | ) | $ | 698 | |||||||||
Adjustments, net of income taxes: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (76 | ) | — | (76 | ) | ||||||||||||
Loss (income) from other than temporary impairments losses - net | — | — | — | — | ||||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | — | — | — | ||||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | (15 | ) | — | (15 | ) | ||||||||||||
Adjusted Earnings (Loss) | $ | 422 | $ | 190 | $ | (5 | ) | $ | 607 | |||||||||
Earnings (Loss) Per Share (assuming dilution) Attributable to NextEra Energy, Inc. | $ | 0.99 | $ | 0.66 | $ | (0.01 | ) | $ | 1.64 | |||||||||
Adjustments: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (0.18 | ) | — | (0.18 | ) | ||||||||||||
Loss (income) from other than temporary impairments losses - net | — | — | — | — | ||||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | — | — | — | ||||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | (0.03 | ) | — | (0.03 | ) | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 0.99 | $ | 0.45 | $ | (0.01 | ) | $ | 1.43 | |||||||||
Weighted-average shares outstanding (assuming dilution) | 427 | |||||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | ||||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | ||||||||||||||||||
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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary | ||||||||||||||||||
Nine Months Ended September 30, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||||
Operating Revenues | $ | 8,739 | $ | 3,312 | $ | 306 | $ | 12,357 | ||||||||||
Operating Expenses | ||||||||||||||||||
Fuel, purchased power and interchange | 3,367 | 903 | 67 | 4,337 | ||||||||||||||
Other operations and maintenance | 1,186 | 1,014 | 96 | 2,296 | ||||||||||||||
Impairment charge | — | — | — | — | ||||||||||||||
Depreciation and amortization | 1,046 | 761 | 52 | 1,859 | ||||||||||||||
Taxes other than income taxes and other | 892 | 104 | 16 | 1,012 | ||||||||||||||
Total operating expenses | 6,491 | 2,782 | 231 | 9,504 | ||||||||||||||
Operating Income | 2,248 | 530 | 75 | 2,853 | ||||||||||||||
Other Income (Deductions) | ||||||||||||||||||
Interest expense | (325 | ) | (496 | ) | (119 | ) | (940 | ) | ||||||||||
Benefits associated with differential membership interests - net | — | 146 | — | 146 | ||||||||||||||
Equity in earnings (losses) of equity method investees | — | 61 | (1 | ) | 60 | |||||||||||||
Allowance for equity funds used during construction | 27 | — | 1 | 28 | ||||||||||||||
Interest income | 2 | 19 | 39 | 60 | ||||||||||||||
Gains on disposal of assets - net | — | 88 | 1 | 89 | ||||||||||||||
Gain (loss) associated with Maine fossil | — | 21 | — | 21 | ||||||||||||||
Other - net | (1 | ) | 22 | (30 | ) | (9 | ) | |||||||||||
Total other deductions - net | (297 | ) | (139 | ) | (109 | ) | (545 | ) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 1,951 | 391 | (34 | ) | 2,308 | |||||||||||||
Income Tax Expense (Benefit) | 720 | 16 | (13 | ) | 723 | |||||||||||||
Income (Loss) from Continuing Operations | 1,231 | 375 | (21 | ) | 1,585 | |||||||||||||
Gain from Discontinued Operations, net of Income Taxes | — | — | — | — | ||||||||||||||
Net Income (Loss) | 1,231 | 375 | (21 | ) | 1,585 | |||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | (4 | ) | — | (4 | ) | ||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,231 | $ | 371 | $ | (21 | ) | $ | 1,581 | |||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,231 | $ | 371 | $ | (21 | ) | $ | 1,581 | |||||||||
Adjustments, net of income taxes: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 274 | 9 | 283 | ||||||||||||||
Loss (income) from other than temporary impairments losses - net | — | (1 | ) | 2 | 1 | |||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | (12 | ) | — | (12 | ) | ||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | 22 | — | 22 | ||||||||||||||
Adjusted Earnings (Loss) | $ | 1,231 | $ | 654 | $ | (10 | ) | $ | 1,875 | |||||||||
Earnings (Loss) Per Share (assuming dilution) Attributable to NextEra Energy, Inc. | $ | 2.80 | $ | 0.84 | $ | (0.04 | ) | $ | 3.60 | |||||||||
Adjustments: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | 0.62 | 0.02 | 0.64 | ||||||||||||||
Loss (income) from other than temporary impairments losses - net | — | — | — | — | ||||||||||||||
Gain from discontinued operations (Hydro) | — | — | — | — | ||||||||||||||
Loss (gain) associated with Maine fossil | — | (0.03 | ) | — | (0.03 | ) | ||||||||||||
Impairment charge and valuation allowance | — | — | — | — | ||||||||||||||
Operating loss (income) of Spain solar projects | — | 0.05 | — | 0.05 | ||||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 2.80 | $ | 1.48 | $ | (0.02 | ) | $ | 4.26 | |||||||||
Weighted-average shares outstanding (assuming dilution) | 440 | |||||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | ||||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | ||||||||||||||||||
9
NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unudited)
Preliminary | ||||||||||||||||||
Nine Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | ||||||||||||||
Operating Revenues | $ | 7,905 | $ | 3,343 | $ | 258 | $ | 11,506 | ||||||||||
Operating Expenses | ||||||||||||||||||
Fuel, purchased power and interchange | 2,979 | 734 | 53 | 3,766 | ||||||||||||||
Other operations and maintenance | 1,254 | 1,001 | 83 | 2,338 | ||||||||||||||
Impairment charge | — | 300 | — | 300 | ||||||||||||||
Depreciation and amortization | 780 | 704 | 39 | 1,523 | ||||||||||||||
Taxes other than income taxes and other | 847 | 121 | 10 | 978 | ||||||||||||||
Total operating expenses | 5,860 | 2,860 | 185 | 8,905 | ||||||||||||||
Operating Income | 2,045 | 483 | 73 | 2,601 | ||||||||||||||
Other Income (Deductions) | ||||||||||||||||||
Interest expense | (310 | ) | (374 | ) | (141 | ) | (825 | ) | ||||||||||
Benefits associated with differential membership interests - net | — | 119 | — | 119 | ||||||||||||||
Equity in earnings (losses) of equity method investees | — | 27 | — | 27 | ||||||||||||||
Allowance for equity funds used during construction | 42 | — | 8 | 50 | ||||||||||||||
Interest income | 3 | 15 | 40 | 58 | ||||||||||||||
Gains on disposal of assets - net | — | 40 | — | 40 | ||||||||||||||
Gain (loss) associated with Maine fossil | — | (67 | ) | — | (67 | ) | ||||||||||||
Other - net | (2 | ) | 14 | (12 | ) | — | ||||||||||||
Total other deductions - net | (267 | ) | (226 | ) | (105 | ) | (598 | ) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 1,778 | 257 | (32 | ) | 2,003 | |||||||||||||
Income Tax Expense (Benefit) | 677 | 3 | (27 | ) | 653 | |||||||||||||
Income (Loss) from Continuing Operations | 1,101 | 254 | (5 | ) | 1,350 | |||||||||||||
Gain from Discontinued Operations, net of Income Taxes | — | 216 | 15 | 231 | ||||||||||||||
Net Income (Loss) | 1,101 | 470 | 10 | 1,581 | ||||||||||||||
Less Net Income Attributable to Noncontrolling Interests | — | — | — | — | ||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | ||||||||||
Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings: | ||||||||||||||||||
Net Income (Loss) Attributable to NextEra Energy, Inc. | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | ||||||||||
Adjustments, net of income taxes: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (15 | ) | — | (15 | ) | ||||||||||||
Loss (income) from other than temporary impairments losses - net | — | (1 | ) | — | (1 | ) | ||||||||||||
Gain from discontinued operations (Hydro) | — | (216 | ) | (15 | ) | (231 | ) | |||||||||||
Loss (gain) associated with Maine fossil | — | 41 | 2 | 43 | ||||||||||||||
Impairment charge and valuation allowance | — | 342 | — | 342 | ||||||||||||||
Operating loss (income) of Spain solar projects | — | (15 | ) | — | (15 | ) | ||||||||||||
Adjusted Earnings (Loss) | $ | 1,101 | $ | 606 | $ | (3 | ) | $ | 1,704 | |||||||||
Earnings (Loss) Per Share (assuming dilution) Attributable to NextEra Energy, Inc. | $ | 2.59 | $ | 1.11 | $ | 0.02 | $ | 3.72 | ||||||||||
Adjustments: | ||||||||||||||||||
Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges | — | (0.04 | ) | — | (0.04 | ) | ||||||||||||
Loss (income) from other than temporary impairments losses - net | — | — | — | — | ||||||||||||||
Gain from discontinued operations (Hydro) | — | (0.51 | ) | (0.03 | ) | (0.54 | ) | |||||||||||
Loss (gain) associated with Maine fossil | — | 0.10 | — | 0.10 | ||||||||||||||
Impairment charge and valuation allowance | — | 0.80 | — | 0.80 | ||||||||||||||
Operating loss (income) of Spain solar projects | — | (0.03 | ) | — | (0.03 | ) | ||||||||||||
Adjusted Earnings (Loss) Per Share | $ | 2.59 | $ | 1.43 | $ | (0.01 | ) | $ | 4.01 | |||||||||
Weighted-average shares outstanding (assuming dilution) | 425 | |||||||||||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | ||||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | ||||||||||||||||||
Based on the decision in the first quarter of 2014 to retain the Maine fossil assets, the related loss recorded in 2013 was reclassified from discontinued operations to income from continuing operations. | ||||||||||||||||||
10
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
Preliminary | |||||||||||||||||
September 30, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Electric plant in service and other property | $ | 38,836 | $ | 25,911 | $ | 1,476 | $ | 66,223 | |||||||||
Nuclear fuel | 1,311 | 839 | — | 2,150 | |||||||||||||
Construction work in progress | 1,458 | 3,031 | 49 | 4,538 | |||||||||||||
Less accumulated depreciation and amortization | (11,385 | ) | (6,089 | ) | (370 | ) | (17,844 | ) | |||||||||
Total property, plant and equipment - net | 30,220 | 23,692 | 1,155 | 55,067 | |||||||||||||
Current Assets | |||||||||||||||||
Cash and cash equivalents | 29 | 416 | 40 | 485 | |||||||||||||
Customer receivables, net of allowances | 1,051 | 922 | 49 | 2,022 | |||||||||||||
Other receivables | 121 | 588 | (320 | ) | 389 | ||||||||||||
Materials, supplies and fossil fuel inventory | 835 | 430 | 4 | 1,269 | |||||||||||||
Regulatory assets: | |||||||||||||||||
Deferred clause and franchise expenses | 237 | — | — | 237 | |||||||||||||
Other | 146 | — | 7 | 153 | |||||||||||||
Derivatives | 3 | 524 | 35 | 562 | |||||||||||||
Deferred income taxes | — | 180 | (149 | ) | 31 | ||||||||||||
Other | 119 | 362 | 4 | 485 | |||||||||||||
Total current assets | 2,541 | 3,422 | (330 | ) | 5,633 | ||||||||||||
Other Assets | |||||||||||||||||
Special use funds | 3,434 | 1,596 | — | 5,030 | |||||||||||||
Other investments | 75 | 479 | 830 | 1,384 | |||||||||||||
Prepaid benefit costs | 1,177 | — | 338 | 1,515 | |||||||||||||
Regulatory assets: | |||||||||||||||||
Securitized storm-recovery costs | 311 | — | — | 311 | |||||||||||||
Other | 435 | — | 38 | 473 | |||||||||||||
Derivatives | 1 | 839 | 2 | 842 | |||||||||||||
Other | 209 | 1,392 | 337 | 1,938 | |||||||||||||
Total other assets | 5,642 | 4,306 | 1,545 | 11,493 | |||||||||||||
Total Assets | $ | 38,403 | $ | 31,420 | $ | 2,370 | $ | 72,193 | |||||||||
Capitalization | |||||||||||||||||
Common stock | $ | 1,373 | $ | — | $ | (1,369 | ) | $ | 4 | ||||||||
Additional paid-in capital | 6,279 | 9,004 | (8,728 | ) | 6,555 | ||||||||||||
Retained earnings | 5,464 | 6,399 | 341 | 12,204 | |||||||||||||
Accumulated other comprehensive income | — | 30 | 17 | 47 | |||||||||||||
Noncontrolling interests | 71 | 263 | — | 334 | |||||||||||||
Total common shareholders' equity | 13,187 | 15,696 | (9,739 | ) | 19,144 | ||||||||||||
Long-term debt | 9,413 | 5,838 | 9,602 | 24,853 | |||||||||||||
Total capitalization | 22,600 | 21,534 | (137 | ) | 43,997 | ||||||||||||
Current Liabilities | |||||||||||||||||
Commercial paper | 280 | — | 405 | 685 | |||||||||||||
Short-term debt | — | — | 500 | 500 | |||||||||||||
Current maturities of long-term debt | 58 | 1,716 | 1,611 | 3,385 | |||||||||||||
Accounts payable | 674 | 807 | 15 | 1,496 | |||||||||||||
Customer deposits | 453 | 4 | — | 457 | |||||||||||||
Accrued interest and taxes | 984 | 259 | (412 | ) | 831 | ||||||||||||
Derivatives | 39 | 705 | 13 | 757 | |||||||||||||
Accrued construction-related expenditures | 198 | 551 | 7 | 756 | |||||||||||||
Other | 337 | 315 | 53 | 705 | |||||||||||||
Total current liabilities | 3,023 | 4,357 | 2,192 | 9,572 | |||||||||||||
Other Liabilities and Deferred Credits | |||||||||||||||||
Asset retirement obligations | 1,337 | 598 | — | 1,935 | |||||||||||||
Deferred income taxes | 6,480 | 1,596 | (77 | ) | 7,999 | ||||||||||||
Regulatory liabilities: | |||||||||||||||||
Accrued asset removal costs | 1,876 | — | 5 | 1,881 | |||||||||||||
Asset retirement obligation regulatory expense difference | 2,186 | — | — | 2,186 | |||||||||||||
Other | 450 | — | 72 | 522 | |||||||||||||
Derivatives | 10 | 465 | 93 | 568 | |||||||||||||
Deferral related to differential membership interests | — | 1,847 | — | 1,847 | |||||||||||||
Other | 441 | 1,023 | 222 | 1,686 | |||||||||||||
Total other liabilities and deferred credits | 12,780 | 5,529 | 315 | 18,624 | |||||||||||||
Commitments and Contingencies | |||||||||||||||||
Total Capitalization and Liabilities | $ | 38,403 | $ | 31,420 | $ | 2,370 | $ | 72,193 | |||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | |||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | |||||||||||||||||
11
NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
Preliminary | |||||||||||||||||
December 31, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Electric plant in service and other property | $ | 36,838 | $ | 24,425 | $ | 1,436 | $ | 62,699 | |||||||||
Nuclear fuel | 1,240 | 820 | (1 | ) | 2,059 | ||||||||||||
Construction work in progress | 1,818 | 2,835 | 37 | 4,690 | |||||||||||||
Less accumulated depreciation and amortization | (10,944 | ) | (5,455 | ) | (329 | ) | (16,728 | ) | |||||||||
Total property, plant and equipment - net | 28,952 | 22,625 | 1,143 | 52,720 | |||||||||||||
Current Assets | |||||||||||||||||
Cash and cash equivalents | 19 | 370 | 49 | 438 | |||||||||||||
Customer receivables, net of allowances | 757 | 966 | 54 | 1,777 | |||||||||||||
Other receivables | 137 | 469 | (94 | ) | 512 | ||||||||||||
Materials, supplies and fossil fuel inventory | 742 | 408 | 3 | 1,153 | |||||||||||||
Regulatory assets: | |||||||||||||||||
Deferred clause and franchise expenses | 192 | — | — | 192 | |||||||||||||
Other | 105 | — | 11 | 116 | |||||||||||||
Derivatives | 48 | 423 | 27 | 498 | |||||||||||||
Deferred income taxes | 98 | 615 | 40 | 753 | |||||||||||||
Other | 115 | 268 | 20 | 403 | |||||||||||||
Total current assets | 2,213 | 3,519 | 110 | 5,842 | |||||||||||||
Other Assets | |||||||||||||||||
Special use funds | 3,273 | 1,507 | — | 4,780 | |||||||||||||
Other investments | 4 | 380 | 737 | 1,121 | |||||||||||||
Prepaid benefit costs | 1,142 | — | 314 | 1,456 | |||||||||||||
Regulatory assets: | |||||||||||||||||
Securitized storm-recovery costs | 372 | — | — | 372 | |||||||||||||
Other | 396 | — | 30 | 426 | |||||||||||||
Derivatives | — | 1,156 | 7 | 1,163 | |||||||||||||
Other | 136 | 967 | 323 | 1,426 | |||||||||||||
Total other assets | 5,323 | 4,010 | 1,411 | 10,744 | |||||||||||||
Total Assets | $ | 36,488 | $ | 30,154 | $ | 2,664 | $ | 69,306 | |||||||||
Capitalization | |||||||||||||||||
Common stock | $ | 1,373 | $ | — | $ | (1,369 | ) | $ | 4 | ||||||||
Additional paid-in capital | 6,179 | 8,452 | (8,220 | ) | 6,411 | ||||||||||||
Retained earnings | 5,532 | 6,028 | 9 | 11,569 | |||||||||||||
Accumulated other comprehensive income | — | 45 | 11 | 56 | |||||||||||||
Noncontrolling interests | — | — | — | — | |||||||||||||
Total common shareholders' equity | 13,084 | 14,525 | (9,569 | ) | 18,040 | ||||||||||||
Long-term debt | 8,473 | 5,726 | 9,770 | 23,969 | |||||||||||||
Total capitalization | 21,557 | 20,251 | 201 | 42,009 | |||||||||||||
Current Liabilities | |||||||||||||||||
Commercial paper | 204 | — | 487 | 691 | |||||||||||||
Short-term debt | — | — | — | — | |||||||||||||
Current maturities of long-term debt | 356 | 1,941 | 1,469 | 3,766 | |||||||||||||
Accounts payable | 611 | 575 | 14 | 1,200 | |||||||||||||
Customer deposits | 447 | 4 | 1 | 452 | |||||||||||||
Accrued interest and taxes | 272 | 249 | (48 | ) | 473 | ||||||||||||
Derivatives | 1 | 709 | 128 | 838 | |||||||||||||
Accrued construction-related expenditures | 202 | 635 | 2 | 839 | |||||||||||||
Other | 437 | 395 | 98 | 930 | |||||||||||||
Total current liabilities | 2,530 | 4,508 | 2,151 | 9,189 | |||||||||||||
Other Liabilities and Deferred Credits | |||||||||||||||||
Asset retirement obligations | 1,285 | 565 | — | 1,850 | |||||||||||||
Deferred income taxes | 6,355 | 1,883 | (94 | ) | 8,144 | ||||||||||||
Regulatory liabilities: | |||||||||||||||||
Accrued asset removal costs | 1,839 | — | — | 1,839 | |||||||||||||
Asset retirement obligation regulatory expense difference | 2,082 | — | — | 2,082 | |||||||||||||
Other | 386 | — | 76 | 462 | |||||||||||||
Derivatives | — | 428 | 45 | 473 | |||||||||||||
Deferral related to differential membership interests | — | 2,001 | — | 2,001 | |||||||||||||
Other | 454 | 518 | 285 | 1,257 | |||||||||||||
Total other liabilities and deferred credits | 12,401 | 5,395 | 312 | 18,108 | |||||||||||||
Commitments and Contingencies | |||||||||||||||||
Total Capitalization and Liabilities | $ | 36,488 | $ | 30,154 | $ | 2,664 | $ | 69,306 | |||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | |||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | |||||||||||||||||
12
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
Preliminary | |||||||||||||||||
Nine Months Ended September 30, 2014 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net income (loss) | $ | 1,231 | $ | 375 | $ | (21 | ) | $ | 1,585 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 1,046 | 761 | 52 | 1,859 | |||||||||||||
Nuclear fuel and other amortization | 149 | 93 | 17 | 259 | |||||||||||||
Impairment charge | — | — | — | — | |||||||||||||
Unrealized losses (gains) on marked to market energy contracts | — | 279 | 2 | 281 | |||||||||||||
Deferred income taxes | 249 | 240 | 227 | 716 | |||||||||||||
Cost recovery clauses and franchise fees | (93 | ) | — | — | (93 | ) | |||||||||||
Benefits associated with differential membership interests - net | — | (146 | ) | — | (146 | ) | |||||||||||
Equity in losses (earnings) of equity method investees | — | (61 | ) | 1 | (60 | ) | |||||||||||
Allowance for equity funds used during construction | (27 | ) | — | (1 | ) | (28 | ) | ||||||||||
Gains on disposal of assets - net | — | (88 | ) | (1 | ) | (89 | ) | ||||||||||
Gain from discontinued operations, net of income taxes | — | — | — | — | |||||||||||||
Loss (gain) associated with Maine fossil | — | (21 | ) | — | (21 | ) | |||||||||||
Other - net | 114 | 126 | 79 | 319 | |||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Customer and other receivables | (288 | ) | 37 | (12 | ) | (263 | ) | ||||||||||
Materials, supplies and fossil fuel inventory | (92 | ) | (18 | ) | (2 | ) | (112 | ) | |||||||||
Other current assets | (33 | ) | (36 | ) | 4 | (65 | ) | ||||||||||
Other assets | (92 | ) | (70 | ) | (20 | ) | (182 | ) | |||||||||
Accounts payable and customer deposits | 90 | 59 | (2 | ) | 147 | ||||||||||||
Margin cash collateral | — | (321 | ) | — | (321 | ) | |||||||||||
Income taxes | 391 | (234 | ) | (187 | ) | (30 | ) | ||||||||||
Interest and other taxes | 343 | 20 | 15 | 378 | |||||||||||||
Other current liabilities | (92 | ) | (49 | ) | (8 | ) | (149 | ) | |||||||||
Other liabilities | (27 | ) | — | 10 | (17 | ) | |||||||||||
Net cash provided by operating activities | 2,869 | 946 | 153 | 3,968 | |||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures of FPL | (2,235 | ) | — | — | (2,235 | ) | |||||||||||
Independent power and other investments of NEER | — | (2,471 | ) | — | (2,471 | ) | |||||||||||
Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 321 | — | 321 | |||||||||||||
Nuclear fuel purchases | (129 | ) | (108 | ) | — | (237 | ) | ||||||||||
Other capital expenditures and other investments | — | — | (115 | ) | (115 | ) | |||||||||||
Sale of independent power investments | — | 307 | — | 307 | |||||||||||||
Change in loan proceeds restricted for construction | — | (18 | ) | — | (18 | ) | |||||||||||
Proceeds from sale or maturity of securities in special use funds and other investments | 2,530 | 563 | 486 | 3,579 | |||||||||||||
Purchases of securities in special use funds and other investments | (2,578 | ) | (586 | ) | (537 | ) | (3,701 | ) | |||||||||
Proceeds from the sale of a noncontrolling interest in subsidiaries | — | 438 | — | 438 | |||||||||||||
Other - net | 36 | 14 | 4 | 54 | |||||||||||||
Net cash used in investing activities | (2,376 | ) | (1,540 | ) | (162 | ) | (4,078 | ) | |||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Issuances of long-term debt | 998 | 1,216 | 2,030 | 4,244 | |||||||||||||
Retirements of long-term debt | (355 | ) | (1,201 | ) | (2,132 | ) | (3,688 | ) | |||||||||
Proceeds from sale of differential membership interests | — | 39 | — | 39 | |||||||||||||
Payments to differential membership investors | — | (53 | ) | — | (53 | ) | |||||||||||
Net change in short-term debt | 76 | — | 419 | 495 | |||||||||||||
Issuances of common stock - net | — | — | 57 | 57 | |||||||||||||
Dividends on common stock | — | — | (945 | ) | (945 | ) | |||||||||||
Dividends & capital distributions from (to) NextEra Energy, Inc. - net | (1,200 | ) | 552 | 648 | — | ||||||||||||
Other - net | (2 | ) | 87 | (77 | ) | 8 | |||||||||||
Net cash provided by (used in) financing activities | (483 | ) | 640 | — | 157 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 10 | 46 | (9 | ) | 47 | ||||||||||||
Cash and cash equivalents at beginning of period | 19 | 370 | 49 | 438 | |||||||||||||
Cash and cash equivalents at end of period | $ | 29 | $ | 416 | $ | 40 | $ | 485 | |||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | |||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | |||||||||||||||||
13
NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
Preliminary | |||||||||||||||||
Nine Months Ended September 30, 2013 | Florida Power & Light | NEER | Corporate & Other | NextEra Energy, Inc. | |||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net income (loss) | $ | 1,101 | $ | 470 | $ | 10 | $ | 1,581 | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 780 | 704 | 39 | 1,523 | |||||||||||||
Nuclear fuel and other amortization | 137 | 106 | 19 | 262 | |||||||||||||
Impairment charge | — | 300 | — | 300 | |||||||||||||
Unrealized losses (gains) on marked to market energy contracts | — | (84 | ) | — | (84 | ) | |||||||||||
Deferred income taxes | 465 | 186 | 148 | 799 | |||||||||||||
Cost recovery clauses and franchise fees | (126 | ) | — | — | (126 | ) | |||||||||||
Benefits associated with differential membership interests - net | — | (119 | ) | — | (119 | ) | |||||||||||
Equity in losses (earnings) of equity method investees | — | (27 | ) | — | (27 | ) | |||||||||||
Allowance for equity funds used during construction | (42 | ) | — | (8 | ) | (50 | ) | ||||||||||
Gains on disposal of assets - net | — | (40 | ) | — | (40 | ) | |||||||||||
Gain from discontinued operations, net of income taxes | — | (216 | ) | (15 | ) | (231 | ) | ||||||||||
Loss (gain) associated with Maine fossil | — | 67 | — | 67 | |||||||||||||
Other - net | 106 | 67 | (10 | ) | 163 | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Customer and other receivables | (265 | ) | (114 | ) | (5 | ) | (384 | ) | |||||||||
Materials, supplies and fossil fuel inventory | (30 | ) | (39 | ) | — | (69 | ) | ||||||||||
Other current assets | (5 | ) | (4 | ) | 5 | (4 | ) | ||||||||||
Other assets | (19 | ) | 9 | (13 | ) | (23 | ) | ||||||||||
Accounts payable and customer deposits | 88 | 34 | 1 | 123 | |||||||||||||
Margin cash collateral | — | (448 | ) | — | (448 | ) | |||||||||||
Income taxes | 371 | (344 | ) | (147 | ) | (120 | ) | ||||||||||
Interest and other taxes | 314 | 22 | 14 | 350 | |||||||||||||
Other current liabilities | (65 | ) | (19 | ) | 67 | (17 | ) | ||||||||||
Other liabilities | (18 | ) | (12 | ) | (6 | ) | (36 | ) | |||||||||
Net cash provided by operating activities | 2,792 | 499 | 99 | 3,390 | |||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures of FPL | (2,093 | ) | — | — | (2,093 | ) | |||||||||||
Independent power and other investments of NEER | — | (2,244 | ) | — | (2,244 | ) | |||||||||||
Cash grants under the American Recovery and Reinvestment Act of 2009 | — | 170 | — | 170 | |||||||||||||
Nuclear fuel purchases | (116 | ) | (84 | ) | — | (200 | ) | ||||||||||
Other capital expenditures and other investments | — | — | (122 | ) | (122 | ) | |||||||||||
Sale of independent power investments | — | — | — | — | |||||||||||||
Change in loan proceeds restricted for construction | — | 245 | — | 245 | |||||||||||||
Proceeds from sale or maturity of securities in special use funds and other investments | 1,967 | 637 | 179 | 2,783 | |||||||||||||
Purchases of securities in special use funds and other investments | (2,020 | ) | (657 | ) | (177 | ) | (2,854 | ) | |||||||||
Proceeds from the sale of a noncontrolling interest in subsidiaries | — | — | — | — | |||||||||||||
Other - net | 28 | 20 | 1 | 49 | |||||||||||||
Net cash used in investing activities | (2,234 | ) | (1,913 | ) | (119 | ) | (4,266 | ) | |||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Issuances of long-term debt | 498 | 1,870 | 1,285 | 3,653 | |||||||||||||
Retirements of long-term debt | (453 | ) | (491 | ) | (725 | ) | (1,669 | ) | |||||||||
Proceeds from sale of differential membership interests | — | 201 | — | 201 | |||||||||||||
Payments to differential membership investors | — | (47 | ) | — | (47 | ) | |||||||||||
Net change in short-term debt | 475 | — | (970 | ) | (495 | ) | |||||||||||
Issuances of common stock - net | — | — | 415 | 415 | |||||||||||||
Dividends on common stock | — | — | (836 | ) | (836 | ) | |||||||||||
Dividends & capital distributions from (to) NextEra Energy, Inc. - net | (1,070 | ) | 22 | 1,048 | — | ||||||||||||
Other - net | 6 | (37 | ) | (86 | ) | (117 | ) | ||||||||||
Net cash provided by (used in) financing activities | (544 | ) | 1,518 | 131 | 1,105 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 14 | 104 | 111 | 229 | |||||||||||||
Cash and cash equivalents at beginning of period | 40 | 257 | 32 | 329 | |||||||||||||
Cash and cash equivalents at end of period | $ | 54 | $ | 361 | $ | 143 | $ | 558 | |||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | |||||||||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | |||||||||||||||||
Based on the decision in the first quarter of 2014 to retain the Maine fossil assets, the related loss recorded in 2013 was reclassified from discontinued operations to loss (gain) associated with Maine fossil. | |||||||||||||||||
14
NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
Preliminary | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Year-To-Date | |||||||||||||
NextEra Energy, Inc. - 2013 Earnings Per Share | $ | 0.64 | $ | 1.44 | $ | 1.64 | $ | 3.72 | ||||||||
Florida Power & Light - 2013 Earnings Per Share | $ | 0.68 | $ | 0.92 | $ | 0.99 | $ | 2.59 | ||||||||
Increased profitability | 0.07 | — | — | 0.07 | ||||||||||||
New investment growth | 0.06 | 0.06 | 0.05 | 0.17 | ||||||||||||
Cost recovery clause results, primarily nuclear uprates in base rates | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.05 | ) | ||||||||
Allowance for funds used during construction | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | ||||||||
Wholesale operations | 0.01 | 0.02 | 0.04 | 0.07 | ||||||||||||
Project momentum transition costs, other and share dilution | — | (0.01 | ) | (0.01 | ) | (0.02 | ) | |||||||||
Florida Power & Light - 2014 Earnings Per Share | $ | 0.79 | $ | 0.96 | $ | 1.05 | $ | 2.80 | ||||||||
NEER - 2013 Earnings (Loss) Per Share | $ | (0.09 | ) | $ | 0.54 | $ | 0.66 | $ | 1.11 | |||||||
New investments | 0.06 | 0.05 | 0.09 | 0.20 | ||||||||||||
Existing assets | 0.14 | (0.05 | ) | 0.01 | 0.11 | |||||||||||
Gas infrastructure | 0.01 | — | (0.03 | ) | (0.03 | ) | ||||||||||
Customer supply and proprietary power & gas trading | (0.11 | ) | 0.07 | 0.03 | (0.02 | ) | ||||||||||
Asset sales | — | 0.06 | — | 0.06 | ||||||||||||
NEP initial public offering transaction costs | — | (0.05 | ) | — | (0.05 | ) | ||||||||||
NEP Canadian structuring charges | — | (0.10 | ) | — | (0.10 | ) | ||||||||||
Non-qualifying hedges impact | (0.16 | ) | (0.30 | ) | (0.21 | ) | (0.66 | ) | ||||||||
Gain from discontinued operations (Hydro) | (0.51 | ) | — | — | (0.51 | ) | ||||||||||
Change in Maine fossil gain/loss | 0.13 | — | — | 0.13 | ||||||||||||
Charges associated with impairment of the Spain solar projects | 0.81 | — | — | 0.80 | ||||||||||||
Operating results of Spain solar projects | (0.03 | ) | 0.02 | (0.06 | ) | (0.08 | ) | |||||||||
Change in other than temporary impairment losses - net | (0.01 | ) | — | — | — | |||||||||||
Other, including interest expense and share dilution | (0.04 | ) | (0.06 | ) | (0.03 | ) | (0.12 | ) | ||||||||
NEER - 2014 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 0.20 | $ | 0.18 | $ | 0.46 | $ | 0.84 | ||||||||
Corporate and Other - 2013 Earnings (Loss) Per Share | $ | 0.05 | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.02 | ||||||
NextEra Energy Transmission | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||
Non-qualifying hedges impact | — | (0.01 | ) | 0.01 | (0.02 | ) | ||||||||||
Gain from discontinued operations (Hydro) | (0.03 | ) | — | — | (0.03 | ) | ||||||||||
Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution | (0.02 | ) | 0.02 | — | 0.01 | |||||||||||
Corporate and Other - 2014 Loss Per Share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
NextEra Energy, Inc. - 2014 Earnings Per Share Attributable to NextEra Energy, Inc. | $ | 0.98 | $ | 1.12 | $ | 1.50 | $ | 3.60 | ||||||||
Corporate & Other allocates a portion of corporate interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other. | ||||||||||
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. | ||||||||||
The sum of the quarterly amounts may not equal the total for the year due to rounding. | ||||||||||
15
NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)
Preliminary | |||||||||
September 30, 2014 | Per Books | Adjusted (1) | |||||||
Long-term debt, including current maturities, short-term debt and commercial paper | |||||||||
Junior Subordinated Debentures | $ | 2,978 | $ | 1,489 | |||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Non-Recourse Debt: | |||||||||
Natural gas-fired assets | 1,508 | ||||||||
Wind assets | 3,534 | 1,390 | |||||||
Solar | 1,673 | 759 | |||||||
Other | 954 | ||||||||
Storm Securitization Debt | 331 | ||||||||
Other(2) | 1,406 | ||||||||
Other long-term debt, including current maturities, short-term debt and commercial paper(3) | 16,695 | 16,695 | |||||||
Total debt per Balance Sheet | 29,423 | 21,739 | |||||||
Junior Subordinated Debentures | 1,489 | ||||||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Common shareholders' equity | 19,144 | 19,144 | |||||||
Total capitalization, including debt due within one year | $ | 48,567 | $ | 44,122 | |||||
Debt ratio | 61 | % | 49 | % | |||||
December 31, 2013 | Per Books | Adjusted (1) | |||||||
Long-term debt, including current maturities and commercial paper | |||||||||
Junior Subordinated Debentures | $ | 3,353 | $ | 1,677 | |||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Non-Recourse Debt: | |||||||||
Natural gas-fired assets | 1,613 | ||||||||
Wind assets | 3,794 | 949 | |||||||
Solar | 957 | ||||||||
Other | 555 | ||||||||
Storm Securitization Debt | 386 | ||||||||
Other(2) | 1,486 | ||||||||
Other long-term debt, including current maturities, short-term debt and commercial paper(3) | 16,018 | 16,018 | |||||||
Total debt | 28,426 | 20,130 | |||||||
Junior Subordinated Debentures | 1,676 | ||||||||
Debentures, related to NextEra Energy's equity units | 1,750 | ||||||||
Common shareholders' equity | 18,040 | 18,040 | |||||||
Total capitalization, including debt due within one year | $ | 46,466 | $ | 41,596 | |||||
Debt ratio | 61 | % | 48 | % | |||||
________________________
(1) | Adjusted debt calculation is based on NextEra's interpretation of S&P's credit metric methodology which can be found in their Corporate Ratings Criteria on S&P's website. |
(2) | Other includes imputed debt of purchase power agreements, a portion of the deferral related to differential membership interests and certain accrued interest. |
(3) | Includes premium and discount on all debt issuances. |
16
Florida Power & Light Company
Statistics
(unaudited)
Preliminary | |||||||||||||
Quarter | Year-to-Date | ||||||||||||
Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | |||||||||
Energy sales (million kWh) | |||||||||||||
Residential | 17,241 | 16,848 | 42,655 | 40,898 | |||||||||
Commercial | 12,768 | 12,626 | 34,587 | 33,989 | |||||||||
Industrial | 766 | 759 | 2,221 | 2,241 | |||||||||
Public authorities | 153 | 144 | 421 | 417 | |||||||||
Increase (decrease) in unbilled sales | (216 | ) | (582 | ) | 511 | 563 | |||||||
Total retail | 30,712 | 29,795 | 80,395 | 78,108 | |||||||||
Electric utilities | 1,771 | 582 | 4,301 | 1,655 | |||||||||
Interchange power sales | 403 | 438 | 2,187 | 1,926 | |||||||||
Total | 32,886 | 30,815 | 86,883 | 81,689 | |||||||||
Average price (cents/kWh)(1) | |||||||||||||
Residential | 11.21 | 10.58 | 11.13 | 10.50 | |||||||||
Commercial | 8.89 | 8.33 | 9.04 | 8.52 | |||||||||
Industrial | 6.90 | 6.39 | 6.95 | 6.50 | |||||||||
Total | 9.97 | 9.50 | 9.97 | 9.47 | |||||||||
Average customer accounts (000s) | |||||||||||||
Residential | 4,173 | 4,101 | 4,162 | 4,086 | |||||||||
Commercial | 526 | 517 | 525 | 515 | |||||||||
Industrial | 11 | 10 | 10 | 9 | |||||||||
Other | 4 | 4 | 4 | 5 | |||||||||
Total | 4,714 | 4,632 | 4,701 | 4,615 | |||||||||
September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
End of period customer accounts (000s) | |||||||||||||
Residential | 4,177 | 4,113 | |||||||||||
Commercial | 527 | 518 | |||||||||||
Industrial | 11 | 10 | |||||||||||
Other | 4 | 3 | |||||||||||
Total | 4,719 | 4,644 | |||||||||||
2014 | Normal | 2013 | |||||||||||
Three Months Ended September 30, | |||||||||||||
Cooling degree-days(2) | 917 | 927 | 901 | ||||||||||
Heating degree-days(2) | — | — | — | ||||||||||
Nine Months Ended September 30, | |||||||||||||
Cooling degree-days(2) | 1,669 | 1,650 | 1,598 | ||||||||||
Heating degree-days(2) | 202 | 262 | 220 | ||||||||||
________________________
(1) | Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund. |
(2) | Cooling degree days for the periods above use a 72 degree base temperature and heating degree days use a 66 degree base temperature. |
17