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NextEra Energy (NEE)
Q3 2012 Earnings Call
October 24, 2012 9:00 am ET
Moray P. Dewhurst - Chief Financial Officer, Executive Vice President - Finance and Vice Chairman
Armando Pimentel - Chief Executive Officer and President
James L. Robo - Chief Executive Officer, President, Chief Operating Officer and Director
Stephen Byrd - Morgan Stanley, Research Division
Dan Eggers - Crédit Suisse AG, Research Division
Steven I. Fleishman - BofA Merrill Lynch, Research Division
Paul Patterson - Glenrock Associates LLC
Michael J. Lapides - Goldman Sachs Group Inc., Research Division
Greg Gordon - ISI Group Inc., Research Division
Michael S. Worms - BMO Capital Markets U.S.
James L. Dobson - Wunderlich Securities Inc., Research Division
Previous Statements by NEE
» NextEra Energy Management Discusses Q2 2012 Results - Earnings Call Transcript
» NextEra Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» NextEra Energy's CEO Discusses Q4 2011 Results - Earnings Call Transcript
Thank you, Roxane [ph]. Good morning, everyone, and welcome to our third quarter 2012 earnings conference call. Joining us this morning are Jim Robo, President and Chief Executive Officer of NextEra Energy; Moray Dewhurst, Vice Chairman and Chief Financial Officer of NextEra Energy; Armando Pimentel, President and Chief Executive Officer of NextEra Energy Resources; and Eric Silagy, President of Florida Power & Light Company.
Moray will provide an overview of our results. Following which, our executive team will be available to answer your questions. We will be making statements during this call that are forward-looking. These statements are based on 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 Factors 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-GAAP financial 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. Good morning, everyone. NextEra Energy delivered solid third quarter results despite challenging market conditions in Energy Resources' major markets, and we remain well-positioned to achieve our overall objectives both for this year and for the longer term. We have previously indicated that our focus this year is on executing against plans that are expected to drive growth for the company across both its principal businesses through the middle of the decade, and I'm pleased to be able to report that all our major initiatives continue on track.
At Florida Power & Light, we continue to deliver superior value to our customers, which is the foundation of our strategy and is demonstrated by providing the lowest typical residential bills in the state combined with superior reliability, award-winning customer service and a clean emission profile.
We continue to invest capital at a record rate in major projects that will improve this value proposition over time, including our nuclear uprates and fossil modernization initiatives, all of which made good progress this quarter. The rapid growth in our regulatory capital employed, combined with a consistent earned ROE enabled by the current rate settlement agreement, naturally resulted in strong earnings growth at FPL.
We completed the technical hearing for FPL's base rate case and entered into a proposed settlement agreement with 3 major interveners. Although this proposed agreement is opposed by the Office of Public Counsel, the Florida Public Service Commission has scheduled evidentiary hearings in November and will fully consider it at that time with a decision likely by the end of the year.
At Energy Resources, our financial performance was hampered by the continuing impact of the down power at Seabrook and by disappointingly mild market conditions in Texas, but in other respects, remained solid. I will provide more detail later in the call.
We continue to make good progress on our record backlog of renewables projects, all of which remain on track. We expect to bring into service more than 1,200 megawatts of new U.S. wind capacity in the fourth quarter. Included in this amount is the expected acquisition of 165-megawatt project that is additive to the numbers we have discussed in prior earnings releases.
In addition, we disclosed during the quarter that we signed our first PPA for a 2013 U.S. wind project, a project that is not dependent upon extension of the PTC program, which, as you know, is scheduled -- currently scheduled to lapse at the end of this year. While this additional PPA by itself is not large enough to change the range of our financial expectations, we see it as supportive of the view we have publicly expressed that there will continue to be a Wind Development business in the U.S. post-2012 even if the PTC program is not extended.
Because of the continued progress we have made against our execution objectives, there have been no significant changes to our expectations either for this year or for the longer term. We continue to believe that the major investments we are making at both of our primary businesses will drive our growth in 2013 and beyond and allow us to attain our longer-range expectations.