NextEra Energy (NEE)
Q4 2012 Earnings Call
January 29, 2013 9:00 am ET
Moray P. Dewhurst - Chief Financial Officer, Executive Vice President - Finance and Vice Chairman
James L. Robo - Chief Executive Officer, President, Chief Operating Officer and Director
Armando Pimentel - Chief Executive Officer and President
Dan Eggers - Crédit Suisse AG, Research Division
Stephen Byrd - Morgan Stanley, Research Division
Paul Patterson - Glenrock Associates LLC
Michael J. Lapides - Goldman Sachs Group Inc., Research Division
Hugh Wynne - Sanford C. Bernstein & Co., LLC., Research Division
James L. Dobson - Wunderlich Securities Inc., Research Division
Previous Statements by NEE
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Thank you, Anne. Good morning, everyone, and welcome to our fourth quarter and full year 2012 earnings conference call. With me this morning are Jim Robo, President and Chief Executive Officer of NextEra Energy; Moray Dewhurst, NextEra Energy's Vice Chairman and Chief Financial Officer; Armando Pimentel, President and Chief Executive Officer of NextEra Energy Resources; and Eric Silagy, President of Florida Power and Light. Moray will provide an overview of our results, following which, our executive team will be available to answer your questions.
We will be making forward-looking statements during today's call. These statements are based on our current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the risk factor section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found in the Investor Relations section of our website, nexteraenergy.com. We do not undertake any duty to update any forward-looking statements.
Please also note that today's presentation includes references to adjusted earnings and adjusted EBITDA, which are non-financial GAAP measures. You should refer to the information contained in the slides accompanying this presentation for definitional information and reconciliations of the non-GAAP measure to the closest GAAP financial measure.
With that, I will turn the call over to Moray.
Moray P. Dewhurst
Thank you, Julie, and good morning, everyone. NextEra Energy delivered solid financial results in 2012, and both principal businesses executed on the objectives we set for ourselves and shared with you in 2011.
The progress we made across both major businesses this past year reinforces our growth prospects through the middle of the decade. We also began to devote significant effort to projects that will drive our growth in the second half of the decade.
Throughout the year, we indicated that we were focused on execution, and I'm pleased to note that we met all our principal execution objectives. At FPL, we continued to deliver the best customer value in the state, our major capital projects all progressed well and we successfully resolved our base rate case. At Energy Resources, we completed our record backlog of U.S. wind projects and met our milestones for the development of our Canadian wind portfolio and our solar portfolio. We also had good execution in our day-to-day operations with a strong finish to the year. And finally, construction of our Lone Star Transmission line continued, and we remain on track for the start of operations later this quarter. All in all, it was a very strong year that positions us well for the future.
Before discussing the financial results, I'd like to take a few minutes to highlight what we accomplished in 2012.
At FPL, our strategy is founded upon offering the best customer value in the state and on finding ways to improve our value delivery over time. 2012 was an excellent year in this respect. We maintained our position as a service provider offering the lowest typical residential bills among all 55 utilities in Florida and a bill that is 26% below the national average. We had our best year ever in terms of overall transmission and distribution reliability. And for the ninth year in a row, FPL received the prestigious ServiceOne award for outstanding customer service.
FPL also improved its national ranking in the ongoing J.D. Power & Associates Residential Customer Satisfaction Survey and retained its top ranking in Florida.
In terms of reliability, we continued to rank in the top quartile nationally, and our 5-year average for the System Average Interruption Duration Index or SAIDI was the lowest among all Florida investor-owned utilities for the period 2007 to 2011. Looking forward, we believe we can improve our performance further.
In 2012, we continued to improve the electric grid through our Energy Smart Florida program, including the installation of another 1.5 million smart meters throughout the state, bringing the cumulative total today to approximately 4.3 million. The project is now 96% complete and will serve as the platform for future reliability and customer service enhancements.
Through realtime access to data at the meter, FPL can now better detect and prevent outages and restore service faster when outages do occur. Data is also available to customers through an energy dashboard available online and via mobile device, which is designed to help them monitor energy consumption and make more informed decisions about their usage.