Florida Power & Light Company Shining a Light on Florida’s Future

Florida Power & Light Company Shining a Light on Florida’s Future Christopher G. Cothran Manager, Property Tax December 4, 2012 Proprietary & Confidential Information

Agenda • Foundation – Growth – History • Power Generation • Smart Meters/Smart Grid • Renewable Energy in Florida • 2012 Hurricane Season Update

Florida Power & Light Company • Who we are today: • Largest Electric Utility in Florida • Third Largest Rate-Regulated Utility in the United States • We Serve 35 of Florida’s 67 Counties • Florida’s leading employer with approximately 10,000 Employees • The Largest Taxpayer and Investor in Florida

Florida is More than the First Word in our Name • What is now Florida Power & Light Company was born in the final days of 1925 • Florida was experiencing the greatest land boom the nation had seen • Cities were springing up overnight • Residents were pouring into the state by the thousands • A dependable supply of electricity was desperately needed • Without infrastructure Florida’s growth would have stalled • Capital Costs and Challenging Terrain throughout service territory

Major Events in History • Florida’s Land Boom of mid-1920’s • Fueled by many of the same factors that are still present in Florida’s economy today • Agriculture, Tourism, and International Trade • Post-Depression Years • By 1939 the customer base had nearly doubled since 1925 • World War II • Challenging demands placed on whole nation plant seed for conversation. Doing more with less…

Adolescence: Becoming What We are Today • Post War Boom • Between 1945 and 1960 new residents poured into Florida at a rate of 3,000 per week • FPL Quadrupled its generating capacity by • Building new plants at Palatka, Riviera, Sarasota, Fort Myers and Cutler • Expanding facilities at Miami, Sanford, and Lauderdale • Financing the Growth • FPL Joined the New York Stock Exchange in 1950

Introduction of a New Industry • Space Age to Nuclear Age 1960 - 1972 • Demand for more power caused by population growth across service territory: • Residents and Industry coming from all directions • Kennedy Space Center to the North • Cuban Revolution and Miami’s Transition to International Business Center • In 1960 FPL built a new unit at Port Everglades • In 1964 the Cape Canaveral Plant was constructed • Turkey Point Nuclear Plant • Announced 1965 • On line: Unit 3 – 1972 Unit 4 – 1973

Multiple Issues Force Change • The 1970’s presented Florida and the US with Challenges • OPEC Oil Embargo • Oil prices jumped from $4 to more than $30 per barrel • Greater than 50% of FPL’s generating fleet was dependent on oil • A recession gripped the nation with double-digit inflation and interest rates • FPL’s Response to Challenge (Reduced Oil to 26% of Generation) • Converted some oil-fired plants to natural gas • Added nuclear units (St. Lucie: Unit 1 – 1976 Unit 2 – 1983) • Contracted with neighbors to purchase coal-fired power

How Things Have Changed in Over 85 Years First Year of Service: How Things Look Today: 4.6 Million Electric Customers Over 70,000 miles of power lines Generating Capacity of Approx. 23,700 megawatts • 76,000 Electric & Gas Customers • Approx. 1,400 miles of power lines • Generating Capacity of 70 megawatts

FPL Power Generation 2012

Power Generation – How are we getting the job done today? Sources of Electricity Generation for the 12 months ended November 30, 2011 • Fuel Source • Natural Gas: 63.83% • Nuclear: 20.12% • Purchased Power: 9.95% • Coal: 5.10% • Oil: 0.94% • Solar: 0.06% Planned repowers and uprates are focused on gaining efficiency and taking advantage of low cost abundant fuel

Maintaining/Improving our Fleet and Service http://youtu.be/nGDFXzlyE8E

A New “Generation” of Power Plants • State-of-The-Art combined cycle units • Natural Gas Fired • Efficient • Deployment of Technology • Martin Plant 1994 • Fort Lauderdale Plant repowered to nearly triple original nameplate • In 2002 Fort Myers & Sanford saw more than 1,000 MW added in repower • Additional 1,900 MW added with at Martin and Manatee • Added 1,150 MW with Turkey Point Unit 5 • West County Energy Center (Palm Beach) 3,750 MW

FPL made consistent and meaningful investments over the past several years to improve the efficiency and reliability of our generation, transmission, and distribution of electricity Assessed Value Over Time US$ in Billions Value increases are driven by West County Energy Center Unit 3 and Nuclear Uprate Projects

FPL has seen significant growth in Property Taxes Paid since 2000 due to reinvestment in power generation assets and “the Grid” Real & Personal Property Taxes Paid 2000 - 2012 US$ in Millions The Compound Annual Growth Rate for Property Taxes Paid by FPL between 2000 and 2012 is 5.62%

The Cape Canaveral Repower http://youtu.be/upsLeHVJB2M

Riviera Beach Modernization • Supplying power for future needs: • Scheduled to open in 2016 • The plant will be capable of producing 1,250 MW of electricity • Economic benefits: • Estimated tax revenue of between $7.0 to $9.0 million in 1st year of operation • Uses 33% less fuel that current facility, producing the same power • Environmental benefits: • Compared to the former plant, the new plant would cut emissions by more than 50% • FPL will construct a Manatee Viewing Area. Artist rendering of Riviera Beach Repower

Overview and Status Update on Port Everglades • Supplying power for future needs: • Scheduled to open in 2016 • Combined cycle natural gas plant capable of producing 1,277 MW • Economic benefits: • Estimated $1.0 billion investment • Uses 35% less fuel that current facility • Efficiencies gained would produce net savings of over $400 million • Environmental benefits: • Compared to the former plant, the new plant would cut the carbon dioxide emissions rate in half and reduce air emissions by more than 90% Artist rendering of Port Everglades Repower

Power Generation – Doing more with the same plants. The Nuclear Up-Rate projects at St. Lucie and Turkey Point are allowing us to increase production and improve efficiency Overview of Nuclear Up-Rates • Additional Output per Unit • PSL Unit 1 – 129 MW (June/July 2012) • PSL Unit 2a – 31 MW (May 2011) • PSL Unit 2b – 84 MW (October 2012) • TP Unit 3 – 123 MW (July 2012) • TP Unit 4 – 123 MW (March 2013) • Cost Summary • Current cost estimates are $2.5 billion St. Lucie Nuclear Power Plant Improving our existing low cost, low emission assets is the overriding goal

FPL’s Investment in Smart Grid Technology • We have invested in smart grid technology to keep service reliability high and give customers more information to better manage their energy use and monthly bills • Improved Reliability • Faster Restoration • Customers in Control • Better Service • More Convenience • No Estimated Bills • Fleet Performance and Diagnostic Center • Control/Monitoring Center of NextEra’s entire Generation Fleet

There have been very few incentives and no new legislation passed during recent session to attract renewable energy investments to Florida. Renewable Energy in Florida FPL’s Desoto Solar Plant As in past years, FPL continues to explore opportunities to expand our current portfolio of 110MW of renewable power generation.

2012 Hurricane Season Update • Seventh-Consecutive Year Without a Direct Hit from a Hurricane • Four Names Systems • Tropical Storm Beryl - May • Tropical Storm Debbie – June • Tropical Storm Isaac – August • Hurricane Sandy – October • Collectively these storms disrupted service to 900,000 of FPL’s customers • 80% restored within 8 hours

Mutual Assistance • FPL Received Mutual Assistance Twice in 2012 • FPL pre-staged almost 2,500 additional line personnel and contractors to respond to Isaac • For Hurricane Sandy, FPL secured more than 100 additional line workers • FPL Provided Mutual Assistance Twice During 2012 • FPL Sent 135 workers to Maryland in response to the Super Derecho storm that impacted several mid-Atlantic states. • FPL deployed nearly 1,000 employees and contractors, along with bucket trucks, tankers, fuel pumper trucks and other equipment to assist 11 utilities from Virginia to New Jersey to restore power

Preparing for the Storm • FPL has made significant investment to make its system more resilient to storms • Technological advancements (Smart Grid) • How crews and resources are positioned • Increased efficiency of emergency response organization • FPL Command Center • Ready for Action at Start of 2012 Storm Season • Category-5-rated • Located in Riviera Beach

Questions?

Florida Power & Light Company Shining a Light on Florida’s Future