-- -- --- - - --- --- --- --- ---- ---- ----- --- ---- --- --- ---

NextEra Energy Resources 

Proprietary & Confidential Information 
c=) 

2 

Agenda 

• Overview of NextEra Energy 

• Potential Classification as a Swap 

Dealer and Proposed Solution 
---- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

NextEra Energy is a premier U.S. power company comprised 

of two great businesses 

3 

• I=PL 

NEXTeraTM ENERGY:::: ~ ~ 

$22.2 B market capitalization1 

42,588 MW in operation 

$15.3 B in operating revenues 

$53.0 B in total assets NEXTera® 

ENERGY. RESOURCES 

One of the largest U.S. electric utilities 

Vertically integrated, retail rate-regulated 

4.5 million customer accounts 

23,772 MW in operation 

Successful wholesale generator 

U.S. leader in renewable generation 

Assets in 26 states and Canada 

18,886 MW in operation 

$11.0 B operating revenues 

1 Market capitalization as of March 18, 2011 ; source: FactSet. 

All other data as of December 31 , 2010. 

$4.6 billion in operating revenues 

NEXT era ENER~ 
NextEra Energy, Inc. is now one of the largest power 

companies in the United States by any measure 

2nd in Owned Capacity 1 Sth in Retail Customers 2 

50,000 

45,000 

40,000 

35,000 

MW 3o,ooo 

25,000 

20,000 

15,000 

10,000 

5,000 

NextEra Energy I 

42,588 MW J 

r-

,.--- ,.... ...... ....... 

6 

5 

MM 4 

3 

....., , 2 

1 

I 

I 

I 

~ 

~ 

0 I - I' I 'I lo I '' I L I • • • 1o • • • r. 1 1 1 1 1 0 

· · m1r . - ~-

$20 

$18 

$16 

$14 

$8 $12 

$10 

$8 

$6 

$4 

$2 

$0 

(1) 

(2) 

4 (3) 

Jrd in Revenue 3 

NextEra Energy $15.3 B 

$8 

Jrd in Net Income 3 

$3.0 

$2.5 I -

I NextEra Energy L $2.os 

$2.0 r-- ~ 

$1.5 

$1.0 

$0.5 

i . $0.0 -'---- -' 

r-. r-,r-, r-

, , r-, rno 

Source: SNL Financial as of December 31 , 2010. except for NextEra Energy; NextEra Energy portfolio as of December 31, 2010. NEX-1-era 

Source: 2010 Edison Electric Institute DataSource Survey as of December31, 2009; FPL as ofDecember31, 2010. EN ERG~/~ 

Source: 

Energy; 

Bloombe

NextEra Energy 

rg data 

for 

for 

the 

S&P 

year 

Electric 

ended 

Utili

December 

ties Index 

31

components 

, 2010. 

for the 12 months ended September30, 2010, except for NextEra _, ~ 

esouRces 
-- --- --- --- --- ---

NextEra Energy is significantly diversified across its portfolio 

of assets and opportunities 

\ 

I 

" 

5 2% 

Geographical Mix 

~ .- 4·' . ~ 

- -.... ·- -

Generation Mix<1> 

Solar <1% 

Hydro 1% 

Combined 

Cycle 

Natural 

Gas 

40% 

(1) Data as of December 31, 2010. 

Generation by Region<1

> 

Other South 

Florida 

56% 

3% 
... and focused on building a clean energy portfolio 

NextEra Energy Generation Fuel Mix: 200~:-201 0 

45,000 .--- ----- -------- ------------ ------------------------------------------·····---------------------- --- -------- ---- ---------- --- ---- -:-:::: -------

40,000 

35,000 

30,000 4------------------

25,000 

MW 

20,000 

15,000 

10,000 

5,000 

34% 

53% 

l11% 

-- -· . . . t 2% 

2002 2003 2004 2005 2006 2007 2008 2009 2010 

Approximately 90°/o of our generation is clean or renewable 

6 ExTera 

the Beginni~g Martm in Unit ~0108 combined , data does cycle not unit. include 75MW o f new, non-mcremental · solar available for replacing natural gas duct firing at EN ERG:\./ -· 

~ ~ RESOURC~ ES 
-- --- --- --- --- --- --- --- --- ----- ---- --- -----

Our accomplishments are getting noticed ... 

Fortune's "Most Admired" 

2007 2008 2009 2010 2011 

lfSA And 

ora HARD HAT We·ve Done 

TO FILL It Age: in! ~ ~ ~ 

~ ~:~~~~~~~~~~ ~ -6 ~ ~ ~ ~ ~ ~ ' 

1 t 's a h ar d h a. t t o f iII. 

~ '- ~ 4 ................... ....... 

This is our 

~ 

. -- ... -.. .... ... .. ·--

"'--· .. . ...... ... --····· .. 

~ version of a , . . ·-.. ......... - h · , • • • • ••• --~ .. _ 

hat trick . High Five ! 

I+ '• , , .. .. ,.. ' ' " ' ·•• 

It's a 

.. . .. , , ................. .. 

/ Grand Slam. 

I .. , , ..,,.,., _ __ . , , ...... 

r . .. ~a~ -....-l"CCf.:.~~~~trrac."' n:. 

• -- ·- . .. ... . ... .... . 0 -' 

forth( r3lnl~ya. 

t.ttiii4N). 1.:a!au.t"J":.e::.. ;.Qnre:l~' FPI.. Gtow c t;tM:c: No.: .l'1'lll'lQ 

=~.C .. oy . ..,.-:we-....., 

7 
Energy Resources has 18,866 MW located across 26 states 

and Canada 

Energy Resources Portfolio<1> 

• Successful wholesale 

generator 

• U.S. leader in 

renewable generation 

• 4th largest wind energy 

owner in Canada 

• Physical assets in 26 

states and Canada 

• 18,866 MW in 

operation 

• $4.6 billion in 

operating revenues 

• $22.4 billion in total 

assets 

8 

< . ;, ..- ~ • t ' --:;::;;.. . . . 

\ l - \ ~ "'--- . . _/. --: ,--- ~ 

~ / --; I 

NoxtEra Energy Resources 

Goncrotlon F:>cilitles In Opcr:ltion: 

~ Wind ~ Nuclo:>r 

8 Hydroclcctrlc 8 011 

~ Sol::u- e Other 

0 Natum!Gas 

• NcxtEr.l Energy Resources 

Corporate Office 

a Ganadlan provinces with 

projects In oporation 

a u.s. states with projects In opcrotion 

(1) All data as of December 31, 201 0; operating revenues for the 12 months ended December 31, 2010 

----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

, .Q. 
----- ----- ----- ----- ----- ----- -----

NextEra Energy Power Marketing brings power from our 

generating facilities to market and hedges and optimizes the 

output of those facilities 

9 

Asset-Based Market Activity 

• Daily scheduling of units with Independent Scheduling Operators 

(ISO's) in New England, Mid Atlantic, Midwest, Texas and 

California 

• Execute longer-term hedges for our assets with counterparties 

- Many financial deals executed with banks 

• We actively manage many of our competitive assets to take 

advantage of changing market conditions ("Asset Optimization") 

- As market prices for natural gas and electricity change, 

margins for gas-fired generating assets can be increased, 

without increased risk, by repurchasing hedges 

NEx

~ 

-t era 
NextEra Energy Power Marketing also provides full 

requirements services to utilities and municipalities in the 

Northeast, Texas and the Midwest 

Customer Supply Business 

• Many states have deregulated their electric utilities, requiring 

the utilities to divest their generating assets 

• These utilities must procure their power supply from third 

parties 

• As one of the largest asset owners in the nation, NextEra 

Ene~gy Resources is a natural counterp.arty to provide this 

serv1ce 

• Transactions executed with utilities and municipalities in many 

states, including 

- Connecticut, New Jersey, Maine, New Hampshire, 

Massachusetts, Pennsylvania, Maryland, Washington DC, 

Delaware and Texas 

• In most cases, NextEra Energy Power Marketing will hedge 

these transactions in the market with counterparties 

10 

--- --- --- --- --- --- --- --- ---

T era 

ENERGY. 

--- --- --- --- ---- ---
- -- --- --- --- --- --- --- ---

NextEra Energy Resources provides retail energy through its 

subsidiary, Gexa Energy 

Retail Power Business 

• Residential Service in Texas 

• Commercial supply in multiple states across the country 

- Texas, Maine, Connecticut. Illinois, Maine, Maryland, 

Massachusetts, Ohio, Rhode Island, Washington, D.C., 

Pennsylvania, New Hampshire and New Jersey 

• NextEra Energy Power Marketing will hedge these retail sales in 

the market with counterparties 

11 
NextEra Energy Power Marketing hedges our competitive 

assets and our Customer Supply businesses directly with 

counterparties 

Counterparty Transactions 

Counterparties 

End-User 

Transactions 

Proprietary 

Trading 

Sell Power 

Buy Fuel 

Buy Power 

It is critical that 

these swaps 

qualify for the 

end-user 

exemption from 

clearing 

Buy 

Power Fuel 

Competitive 

Assets 

Customer 

Supply 

Portfolio 

I 

I 

I 

I 

I 

Sell I 

Power 

End-User 

Customers 

I 

I 

I 

I 

Trading 

Directly with 

Counterparties 

Trading on ICE 

and NYMEX 

Swaps that 

cannot be 

cleared 

Hedging our assets and customer supply businesses directly with 

counterparties avoids carrying "open" positions on the exchanges 

12 

----- ----- ----- ----- -----
Customer Supply and Proprietary Trading represent -7°/o of 

NextEra Energy Resources' gross margin, and an even smaller 

% of NextEra Energy's business 

201 OE NextEra Energy Resources Gross Margin<1> 

• Nuclear 

• Gas/o11 

• Other Long Term 

Contracted 

Other Assets 

21% 

• Nuclear 

• Hydro 

• Gas/oil 

• Other 

o ClUistomeu- l!.Bpp~y 

lblUlsonesses 

o IPO"OLOO"Deiau-y fcra~d8U1l9J 

0 G~s orr~ras~nJJCti!.JHI'r2: 

(1) Gross margin includes NextEra Energy Resources' share of revenues, pretax effect of production and 

investment tax credits, pretax impact of the Recovery Act, and fuel expense for consolidated and equity 

13 method investments. Gross margin excludes the mark-to-market effect of non-qualifying hedges. 
c=) 

14 

Agenda 

• Overview of NextEra Energy 

• Potential Classification as a Swap 

Dealer and Proposed Solution 
--- --- --- --- --- --- --- ---

NextEra Energy Resources is concerned that it may be a 

"Swap Dealer" as a result of its customer s.upply activity 

15 

Potential Classification as a Swap Dealer 

• The vast majority of NextEra Energy Resources' swaps are 

entered into with financial institutions to hedge commercial risk 

• However, NextEra sometimes enters into swaps with other 

physical commodity market customers who are hedging their 

own commercial risks 

- These transactions may be physically-settled or financial 

depending upon the requirements of the counter party 

• If NextEra Energy Resources is a swap dealer as a result of these 

activities, it would be subject to mandatory capital, margin, and 

clearing and we would need to make substantial investments in 

information technology 

- This would consume large amounts of investment capital that 

could otherwise be devoted to renewable energy projects 

- At least some of these costs would be passed onto consumers, 

manufacturers and employers 
NextEra Energy Resources' customer supply activity is 

integral to its generation business and is an important feature 

of deregulated electricity markets 

16 

Customer Swaps are Integral to Generation Business 

• NextEra Energy Resources' natural long position in electricity 

requires it to enter into a variety of physical and financial hedging 

transactions 

• Those positions involve NextEra Energy Resources in 

commercial relationships with electricity customers and other 

physical market participants who have natural short positions in 

electricity 

• When NextEra enters into a swap with a customer, the swap is 

ancillary or incidental to its regular business of owning and 

operating electricity generation assets 

- NextEra only enters into swaps that are related to its regular 

business as a producer and user of physical commodities, i.e., 

swaps based on energy commodities with price references at 

delivery points in regions where it owns physical assets 

----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
A swap entered into by a generation company that is ancillary 

to its generation business should be deemed a swap entered 

into "not as part of a regular business" 

17 

Customer Swaps are Not Part of a Regular Business 

• The swap dealer definition provides an exception for companies 

that enter into swaps for its own account "but not as part of a 

regular business" 

• This exception should apply 

- to a non-financial entity that produces, processes, uses, or 

merchandizes a physical commodity 

- that enters into a swap for its own account that is ancillary or 

incidental to its regular business 

- the swap must be between commercial participants that have a 

demonstrable capacity to make or take delivery of the commodity 

underlying the swap 

- the swap must be a substitute for a transaction that could have been 

made or taken in a physical marketing channel 

- at least one of the parties must be entering into the swap to hedge or 

manage commercial risk 

--
NextEra Energy Resources proposed additional comments to 

the swap dealer definition in its letter of February 22 

18 

Additonal Comments to Proposed Regulations 

• "Further define" swap dealer to provide market participants with 

practical guidance about which activities fall within or outside of 

the proposed definition 

• Adopt an alternative approach to implementing the de minimis 

exception that focuses on a level of dealing activity that poses 

little or no risk to the U.S. financial system 

- Swaps with a notional amount that is less than .001% (determined 

on a quarterly basis) of the total notional amount of swaps in the 

United States 

----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Proposed Swap Dealer Definition Enhancements 

17 C.F.R. 1.3(ppp) Swap Dealer. 

(1) In general. The term "swap dealer' means any person who: 

(i) Holds itself out as a dealer in swaps; 

(ii) Makes a market in swaps; 

(a) "Makes a market" means regularly quoting bid and offer prices for. and standing ready to enter into. a swap for a person's own 

account for the purpose of responding to customer demand for swaps. 

(iii) Regularly enters into swaps with counterparties as an ordinary course of business for its own account; or 

(iv) Engages in any activity causing it to be commonly known in the trade as a dealer or market maker in swaps. 

provided. however. that in no event shall an entity be considered to be a swap dealer to the extent that it offers to enter into. or enters into. a swap: 

(a) to hedge or mitigate commercial risk. as defined in § 1.3(ttt); 

(b) for the purpose of benefiting from future changes in the price of the underlying commodity; 

(c) on a designated contract market or swap execution facility: or 

(d) that is an option to make or receive delivery of a physical commodity. 

(2) Exception. The term "swap dealer" does not include a person that enters into swaps for such person's own account, either individually or in a 

fiduciary capacity, but not as a part of regular business. 

(4) 

(i) A non-financial entity that produces. processes. uses. or merchandizes. a physical commodity, or the products or by-products thereof. is not a 

swap dealer to the extent that it enters into a swap for its own account that is ancillary or incidental to its regular business. A swap is ancillary 

or incident[al] to a non-financial entity's regular business if it is: 

between oersons that have the caoacity to make or take deliverv of the underlvin 

channel: and 

(c) at least one of the parties thereto is hedging or mitigating commercial risk. 

(ii) "Regular Business" means a usual and significant business activity of a person as measured by, among other things. revenues. profits. 

volume. VaR. exposure and resources devoted to the business. 

De minimis ce~tion . A person shall not be deemed to be a swap dealer as a result of swap dealing activity involving counterparties that meets 

each of the follo>i ng conditioA-s: (i) The jf the swap positions connected with those activities into which the person enters, as of the last day of each 

calendar quarter. over the cour · · · did not exceed one thousandth of one percent (.001 %) of the total 

notional amount of swaps in the United States. For purposes of this paraoraph. if the stated notional amount of a swap is leveraged or enhanced by 

the structure of the swap. the calculation shall be based on the effective notional amount of the swap rather than on the stated notional amount. 

19