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10

2012 2013 2014 2015E 2016E 2017E 2018E 2019E

Capital expenditures ($B) historical and forecast*

`

*The above reflect both "committed" and "incremental" capital expenditures that are calculated, apportioned, and/or estimated per RRA adjustments.

Source: NextEra Energy

May 1, 2015 NEXTERA ENERGY (NEE)

Key Statistics:

Sr. Unsec Long-term IssuerClosing Price as of 4/30/2015 $100.93 Year Ended EPS S&P BBB A-Shares Outstanding (000s) 444,124 12/31/14 $5.40 18.7 x Moody's - Baa1Market Cap. ($M) 44,825 12/31/15E $5.55 18.2 x Fitch - A-Market/Book 225% 12/31/16E $6.00 16.8 xReturn on Equity 12.4% Rate Yield Payout

$3.08 3.1% 57.0%

P/E

Credit Ratings: Holding Co.EarningsPricing Information

Dividend

Summary

As has been the case for several years, NEE continues to focus on growth opportunities at utility subsidiary Florida Power & Light (FP&L) and independent energy subsidiary NextEra Energy Resources (NEER). The Florida economy and housing market have improved significantly and over the long-term should support above-industry-average customer and sales growth at FP&L. In addition, the Florida regulatory environment is constructive, as evidenced by the Florida Public Service Commission's (PSC's), December 2012 adoption of a multi-year rate settlement for FP&L.

Major projects at FP&L include the conversion

of three generating plants to high-efficiency gas units; the first and second achieved commercial operation in 2013 and 2014, respectively, with the third expected to be completed in mid-2016. FP&L is also investing in storm-hardening of its delivery system and is constructing a third (600-mile) natural gas pipeline that will extend into central Florida. NEER, at year-end 2014, owned about 19,800 MW of unregulated generation (up from 18,300 MW at year-end 2013), of which approximately 12,270 MW was wind- or solar-powered, making the company one of the largest wind and solar generators in North America. During the years 2015 and 2016, NEER expects to increase its generation portfolio by 1,100 MW to 1,300 MW of wind capacity and 150 MW to 250 MW of solar capacity. In an endeavor to better capitalize on the value of its renewables portfolio, NEE, in June 2014 launched a "yieldco," NextEra Energy Partners, LP.

NEE estimates capital expenditures of at least

$22.85 billion from 2015 through 2019. The company's financials, which are among the strongest in the utility sector, should continue to provide flexibility and resiliency in a difficult pricing environment for wholesale power markets. In addition, the company has reduced its exposure to pricing variability in merchant generation markets by increasing its non-regulated capacity that is under contract.

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0

10

20

4/30/14 6/30/14 8/31/14 10/31/14 12/31/14 2/28/15 4/30/15

Sto

ck P

rice

(%)

NEE stock price performance (%) 4/30/14 to 4/30/15

NEE (+1.08%) DJIA (+7.60%)Source: SNL Energy Total Return: NEE (+4.09%)

Natural Gas27%

Hydro / Solar / Oil / Coal3%

Nuclear28%

Wind42%

Source: NextEra Energy

NextEra Energy 2014 Fuel Mix (MWh)

May 4, 2015

Utility Market Comment – Week Ended May 1, 2015 Broad markets, utilities down on economic and Fed hike uncertainties Broad markets and utilities moved down last week primarily on continued uncertainty concerning the timing of a rate hike by the Fed, much weaker-than-expected Q1 U.S. GDP, and continued mixed signals regarding the direction of jobs, manufacturing, and consumer sentiment. The RRA Index, Dow Jones Industrial Average, S&P 500, and NASDAQ were down 1.7%, 0.3%, 0.4%, and 1.7%, respectively. Thus far in 2015, the DJIA, S&P 500, and NASDAQ are up 1.1%, 2.4%, and 5.7%, respectively, whereas the RRA Index is down 6%. Over the last 12 months, the RRA Index was up about 3%, while the other indices we track posted gains within a range of 9% to 21%. Best performers for the week PG&E Corp. rose 1.4% last week, and was the group’s best performer. On April 29, the company reported adjusted earnings that beat consensus (and were considerably stronger than the results for the same period last year), due primarily to the timing of expense recoveries authorized in Pacific Gas & Electric's (PG&E's) 2014 general rate case. However, on a GAAP basis, earnings fell by greater than 85% from the impact of fines levied by the California Public Utilities Commission (PUC) related to the San Bruno accident (see the April 29 SNL Energy article for additional details). PCG plans to issue between $700 million and $800 million of equity in 2015 to offset the impact of the $1.6 billion in PUC fines to date (see April 29 SNL Energy article for additional information). PG&E may face additional CPUC fines, and up to $1.13 billion in federal fines should the company be found guilty of knowingly and willfully violating the federal Pipeline Safety Act and obstructing the National Transportation Safety Board's investigation into the San Bruno explosion (see April 30 SNL Energy article for additional information). Exelon Corp. advanced 0.2% last week on stronger-than-expected earnings due primarily to lower storm costs and favorable weather at subsidiary PECO Energy Co., lower costs at its merchant business Exelon Generation Co., and higher distribution revenue at Baltimore Gas & Electric from increased rates (see April 29 SNL Energy article for additional information). For a comprehensive analysis of the company, see the recent RRA Company Report on EXC. CenterPoint Energy was unchanged last week, though it has underperformed meaningfully this year, losing over 10% year-to-date. Despite strong results at its electric and natural gas utility operations in 2014, concerns remain regarding the future performance of the

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5

10

15

5/1/14 7/1/14 9/1/14 11/1/14 1/1/15 3/1/15 5/1/15

Source: SNL Energy

Index (%) Price Change - 05/01/14 to 05/01/15

DJIA RRA Index

8.8

3.3

Index PerformancePrice Change through 05/01/15 (%)

WeekYear-

to-DateLast

12 mos.RRA -1.7 -6.0 3.3DJIA -0.3 1.1 8.8S&P 500 -0.4 2.4 11.9NASDAQ Composite -1.7 5.7 21.3Source: SNL Energy

RRA Index - Best PerformersWeek-to-Week (4/24/15 to 5/1/15) and Year-to-Date Performance

Top Performers Week YTDPG&E Corp. 1.4 0.5Exelon Corp. 0.2 -8.0CenterPoint Energy Inc. 0.0 -10.1Edison International -0.1 -6.0Southern Co. -0.1 -8.7Source: SNL Energy

% Change

RRA Index - Worst PerformersWeek-to-Week (4/24/15 to 5/1/15) and Year-to-Date Performance

Bottom Performers Week YTDSouthw est Gas Corp. -5.7 -11.1Portland General Electric Co. -5.1 -6.9Pinnacle West Capital Corp. -5.1 -11.5IDACORP Inc. -4.5 -9.6Vectren Corp. -3.7 -6.5Source: SNL Energy

% Change

RRARegulatory Research Associates: Coverage, proprietary data and services

RRA Research Notes• Real-time online updates of regulatory developments• Customize access based on states/companies that are of most interest to you.• Compiled weekly in RRA Focus Notes

Rate Case History• Historical rate case data dating back to 1980• Summary information on pending cases• Filterable by state, date and company• Statistical analysis• Exportable custom spreadsheets• Rate Case Profiles provide detail on individual cases, including RRA’s analytical Rate Case Final Reports

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Research Reports• Periodic and topical research reports on industry issues• Quarterly reports on pending and completed cases, with

analysis of statistics and trends• Regulatory Risk assessments through RRA Regulatory

Rankings

Commissioner meetings• Attend periodic client only meetings for informal discussions with commissioners from individual states

Access to RRA Analysts• RRA experts are available for personal consultation

Events Calendar• Find upcoming developments in rate cases, court proceedings and commissioner changes• Filterable by company, state and time period

RRA Research Library• Faceted search based on

jurisdiction/company/report type/topic

Company Reports• Discussion of strategic overview and business model• Earnings and market performance analysis• Challenges and outlook• Detailed service territory and asset map

Monthly Reports• Overview of market performance of RRA Index companies• Analysis of weather data and impact on utility earnings

Topical Special Reports• Comparative information and analysis concerning such topics as capital expenditures, dividends and retail electricity prices

Quality Measures• Comparative analysis and ranking of interest and fixed charge coverage, ROE, ROR and Capital Structure• Separate reports for RRA Index parent companies and their operating subsidiaries• User template available

Weekly Market Commentary• Weekly market performance data for RRA Index companies• Financial metrics such as earnings, earned ROE dividend payout• Best and worst performers

ME7

NH 6MA 8

CT 8RI 8

NJ 4

DE 5

MD 3

WA-18

MT-17

ND-13

SD-14

WY-12

WI-11

ID-11

VT7MN

-14OR-18

IA-12NE

-11

NY5

PA2

IN-6

NV-12 UT

-10

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OH-1

IL-9

WV-1CO

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KS-13

VA0MO

-11

AZ-2

OK-11

NC-4TN

-4

TX1

NM1

AL-8MS

-9

GA-8

SC-7

AR-6

LA-13

FL-12

MI-5

As of April 6, 2015Source: SNL Energy

Heating Degree Days - State/Regional PerspectiveQuarterly View - 1st Quarter 2015 vs 1st Quarter 2014

EastNorth

Central

WestNorth

Central

Paci�c

Mountain

SouthAtlantic

MiddleAtlantic

EastSouth

CentralWestSouth

Central

New England

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(Percent Change)

Percent Change

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5% to 8%

-2- November 10, 2014

Regarding the slight projected spending fall-off in 2015 and 2016, we attribute this (forecasted) decline to the completion of large generation projects and environmental projects undertaken to comply with the Mercury and Air Toxins Standards (MATS) and other standards promulgated by the Environmental Protection Agency (EPA). However, it should be noted that there are a still a number of other rules promulgated by the EPA that will likely increase environmental capital expenditures in the future.

Given the new industry standard of moderate-to-low customer growth and slow sales expansion (relative to pre-recession levels), a decline in capital expenditures and more moderate pace of rate base expansion at regulated utilities are suggestive of a decline in profit expansion forecasts. While cost-cutting initiatives and productivity increases should help to offset some of these affects, without sustained robust investments, the utility sector may have difficulty replicating the healthy earnings expansion seen over the previous few years.

One final thought on the issue of lower-trending spending levels -- it is worth noting that most companies provide three-year formal capital expenditure forecasts (at best), and their projections in years two and three often suggest a spending decline. Accordingly, despite the modest projected reduction in industry-wide capital expenditures, we emphasize that considerable reasons exist for spending to remain robust. The rate case front

With the demand for power currently in a slow-growth pattern, and consumers tiring from the challenges

of rate increases endured in recent years, passing along the costs associated with capital investments to ratepayers will become more challenging over time. Constructive and innovative regulatory policies, such as those that may be explored through the "Reforming Energy Vision" proceeding in New York (see the RRA articles dated Aug. 26 and Oct. 30 for details), will likely become more common as utilities attempt to recover their operating and capital investment costs going forward.

Rate case activity over the past several years has been relatively high, particularly in the electric sector, where the bulk of utility spending has been focused. Table 1, shows that total electric base rate increases nationwide peaked at $5.6 billion in 2010 (77 decisions), about four times the $1.4 billion aggregate level authorized in 2007 (46 decisions). In 2011, electric rate case activity declined significantly, with total increases falling to $2.9 billion (56 decisions). However, in 2012, total electric rate activity and increases rebounded to $3.1 billion (70 decisions), and increased again to $3.5 billion in 2013 on a smaller case volume (64 decisions). Year-to-date, through Sept. 30, 2014, electric base rate increases -- $908 million (30 cases) -- declined significantly compared to the same time period in 2013 -- $2.2 billion (38 cases). In the gas sector, where substantial pipeline replacement spending has been under way nationwide for the past several years, investment levels compared to the electric sector are considerably lower. In 2012, total gas base rate increases were $264 million (41 decisions), down from the peak in 2008 of $885 million (41 decisions). However, in 2013, gas base rate increases rebounded significantly to $494 million (37 cases). Year-to-date, through Sept. 30, 2014, gas base rate increases were $415 million (32 decisions), compared to $304 million (21 decisions) in the same period of 2013.

Noteworthy in our analysis of rate case activity is the trend toward lower authorized returns on equity (ROEs). Table 1 shows that the average allowed ROEs for electric utilities declined from 10.54% in 2005 to a low of 10.02% in 2013. Thus far in 2014, electric ROEs have fallen further to 10.00%. During the same period, average authorized ROEs for gas utilities fell from 10.46% in 2005 to 9.68% in 2013, and have declined to 9.63% for the nine-months-ended Sept. 30, 2014.

Table 1

ROE %Amount

($M) # Cases ROE %Amount

($M) # Cases2005 10.54 1,373.7 36 10.46 458.4 34

2006 10.36 1,465.0 42 10.43 444.0 25

2007 10.36 1,401.9 46 10.24 813.4 48

2008 10.46 2,899.4 42 10.37 884.8 41

2009 10.48 4,192.3 58 10.19 475.0 37

2010 10.34 5,567.7 77 10.08 816.7 49

2011 10.29 2,853.5 56 9.92 436.3 31

2012 10.17 3,131.5 70 9.94 263.9 41

2013 10.02 3,464.6 64 9.68 493.7 37

YTD 9/30/14 10.00 907.6 30 9.63 414.7 32

Source: RRA

Base Rate IncreasesElectric Gas

Table II

Overall Fixed Charge Cash flow Coverage ofRank Pretax Interest Coverage (x) Coverage (x) Dividends (x) Dividend Payout Ratio (%)

1 PS Enterprise Grp 7.01 PS Enterprise Grp 4.60 Edison International 8.29 AES Corporation 152 Questar Corporation 6.57 Questar Corporation 4.57 Southwest Gas Corp 6.92 Edison International 313 AGL Resources Inc. 6.16 AGL Resources Inc. 4.21 PNM Resources, Inc. 6.82 ONE Gas, Inc. 404 Southern Company 5.20 Southern Company 4.03 ONE Gas, Inc. 6.54 AGL Resources Inc. 415 Wisc Energy 4.93 Edison International 3.68 Entergy 6.33 IDACORP, Inc. 466 ONE Gas, Inc. 4.90 OGE Energy Corp. 3.67 Portland General Elec 5.92 OGE Energy Corp. 477 OGE Energy Corp. 4.83 Vectren Corporation 3.49 PG&E Corporation 5.76 Southwest Gas Corp 478 Northeast Utilities 4.62 Wisc Energy 3.43 Great Plains 4.98 PNM Resources, Inc. 509 Hawaiian El Industries 4.58 IDACORP, Inc. 3.43 AGL Resources Inc. 4.96 Portland General Elec 5110 Vectren Corporation 4.56 ONE Gas, Inc. 3.41 DTE Energy 4.93 Exelon 5211 Edison International 4.48 Northeast Utilities 3.32 NextEra Energy, Inc. 4.82 PG&E Corporation 5212 Pinnacle West 4.33 Alliant 3.28 CMS Energy 4.74 PS Enterprise Grp 54 Source: SNL Energy13 Southwest Gas Corp 4.05 Hawaiian El Industries 3.26 Xcel Energy Inc. 4.67 SCANA Corporation 5514 Duke Energy 4.01 PG&E Corporation 3.24 OGE Energy Corp. 4.64 NextEra Energy, Inc. 5515 American El Power 3.96 Pinnacle West 3.14 Alliant 4.52 Sempra Energy 5516 Xcel Energy Inc. 3.93 Sempra Energy 3.14 CenterPoint 4.51 FirstEnergy Corp. 5617 Con Edison 3.90 Duke Energy 2.98 NiSource Inc. 4.51 Entergy 5718 Integrys Energy 3.86 Southwest Gas Corp 2.96 American El Power 4.50 DTE Energy 5819 Ameren Corp 3.83 Exelon 2.94 Ameren Corp 4.48 Xcel Energy Inc. 5820 NextEra Energy, Inc. 3.77 Xcel Energy Inc. 2.94 Exelon 4.40 Questar Corporation 5921 DTE Energy 3.75 Con Edison 2.94 Pinnacle West 4.38 Alliant 5922 PG&E Corporation 3.71 DTE Energy 2.90 Westar Energy, Inc. 4.36 American El Power 5923 Sempra Energy 3.68 American El Power 2.90 Pepco Holdings, Inc. 4.31 NorthWestern Corp 5924 IDACORP, Inc. 3.64 NextEra Energy, Inc. 2.84 PS Enterprise Grp 4.20 Northeast Utilities 5925 Entergy 3.61 Portland General Elec 2.83 Sempra Energy 4.16 NiSource Inc. 5926 Exelon 3.56 SCANA Corporation 2.72 Vectren Corporation 4.14 Westar Energy, Inc. 5927 Alliant 3.54 Ameren Corp 2.72 FirstEnergy Corp. 4.08 Great Plains 6028 Westar Energy, Inc. 3.52 Westar Energy, Inc. 2.70 SCANA Corporation 4.00 Wisc Energy 6029 SCANA Corporation 3.52 Dominion Resources 2.68 Northeast Utilities 4.00 PPL Corporation 6130 Portland General Elec 3.46 Entergy 2.67 IDACORP, Inc. 3.96 CMS Energy 61 Source: SNL Energy31 PPL Corporation 3.36 Integrys Energy 2.62 PPL Corporation 3.86 Pinnacle West 6432 TECO Energy, Inc. 3.14 PPL Corporation 2.59 Questar Corporation 3.86 Vectren Corporation 6433 Dominion Resources 3.06 NorthWestern Corp 2.40 Wisc Energy 3.79 Con Edison 6534 NiSource Inc. 2.93 TECO Energy, Inc. 2.33 Con Edison 3.70 Ameren Corp 6735 Great Plains 2.89 Great Plains 2.26 Duke Energy 3.52 Duke Energy 6936 CMS Energy 2.81 NiSource Inc. 2.23 NorthWestern Corp 3.44 Dominion Resources 7037 CenterPoint 2.74 Pepco Holdings, Inc. 2.19 TECO Energy, Inc. 3.31 Hawaiian El Industries 7438 Pepco Holdings, Inc. 2.71 CMS Energy 2.19 Hawaiian El Industries 3.27 Southern Company 7439 PNM Resources, Inc. 2.58 CenterPoint 2.16 Integrys Energy 3.26 CenterPoint 7540 NorthWestern Corp 2.27 FirstEnergy Corp. 2.08 Southern Company 2.96 Pepco Holdings, Inc. 8541 FirstEnergy Corp. 2.04 PNM Resources, Inc. 2.00 Dominion Resources 2.87 TECO Energy, Inc. 8642 AES Corporation 1.93 AES Corporation 1.64 WGL Holdings, Inc.* NA Integrys Energy 8843 WGL Holdings, Inc.* NA WGL Holdings, Inc.* NA Pied. Nat.Gas* NA WGL Holdings, Inc.* NA44 Pied. Nat.Gas* NA Pied. Nat.Gas* NA Atmos Energy Corp* NA Pied. Nat.Gas* NA45 Atmos Energy Corp* NA Atmos Energy Corp* NA AES Corporation nm Atmos Energy Corp* NA

45 Co. Average 3.86 2.96 4.55 58 Source: SNL Energy

* Data omitted from this study (fiscal-year is not the calendar year).

SUMMARY OF QUALITY RANKINGS AS OF DECEMBER 31, 2014

7.01 6.57 6.16 5.20 4.93 4.90 4.83 4.62 4.58 4.56

0.001.002.003.004.005.006.007.008.00

Top 10 - Pre-tax interest Coverage - 12 months

8.29

6.92 6.82 6.54 6.33 5.92 5.76 4.98 4.96 4.93

0.001.002.003.004.005.006.007.008.009.00

Top 10 - Cash flow Coverage of Dividend - 12 months

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40 41 46 47 47 50 51 52

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60

10 Lowest - Dividend Payout Rankings - 12 months

April 13, 2015

MAJOR RATE CASE DECISIONS--January-March 2015

The average return on equity (ROE) authorized electric utilities was 10.37% in the first quarter of 2015, compared to 9.91% in calendar-2014. There were nine electric ROE determinations for the first three months of 2015, versus 38 in all of 2014. We note that the data includes several surcharge/rider generation cases in Virginia that incorporate plant-specific ROE premiums. Virginia statutes authorize the State Corporation Commission to approve ROE premiums of up to 200 basis points for certain generation projects (see the Virginia Commission Profile). Excluding these Virginia surcharge/rider generation cases from the data, the average authorized electric ROE was 9.67% in the first quarter of 2015 versus 9.76% in 2014. The average ROE authorized gas utilities was 9.47% for the first three months in 2015 compared to 9.78% in calendar-2014. There were three gas cases that included an ROE determination in the first quarter of 2015, versus 26 in 2014. The 2014 averages do not include a Feb. 20, 2014 New York Public Service Commission steam rate decision for Consolidated Edison Co. of New York that adopted a 9.3% ROE. (We note that this report utilizes the simple mean for the return averages.)

As shown in Graph 2 below, after reaching a low in the early-2000s, the number of rate case decisions for energy companies generally increased for the next several years, peaking in 2010 at more than 125 cases.