FPL. :.::fl i..:;: ;J~~ January 13, 2017

Transcription

1 FPL Florida Power & Light Company, 7 Universe Blvd, Juno Beach FL January 13, 217 Mr. Bart Fletcher Public Utilities Supervisor Division of Accounting and Finance Florida Public Service Commission 254 Shumard Oak Blvd. Tallahassee, FL Dear Mr. Fletcher: Enclosed is Florida Power & Light Company's Rate of Return Surveillance Report to the Florida Public Service Commission for November 216. This report was prepared using a thirteen-month average and year-end rate base and adjustments consistent with Docket No EI, Order No. PSC S-EI. The required rate of return was calculated using the return on common equity as authorized in the aforementioned docket and order. The return on common equity is 11.5%. This report was prepared consistent with the guidelines provided in Commission Form PSC/AFA 14. Sincerely, Sr. Director of Regulatory Accounting Enclosures Copy: J. R. Kelly, Office of Public Counsel }.,.. ;:~-~,.,::::::, (. ) ;J~~ - -<., :.::fl i..:;: <~.. -;:l ("') ~"!1'

2 EARNINGS SURVEILLANCE REPORT SUMMARY NOVEMBER, 216 SCHEDULE 1: PAGE 1 OF 1 ACTUAL PER BOOKS FPSC ADJUSTMENTS FPSC ADJUSTED PROFORMA ADJUSTMENTS PROFORMA ADJUSTED I. AVERAGE RATE OF RETURN (JURISDICTIONAL\ NET INCOME 2,161,566,794 (A) (224,292,714) (B) 1,937,274,6 (76, 141,52) RATE BASE 29,632,3,542 (446,576,49) 29,165,452,52 AVERAGE RATE OF RETURN 7.29% 6.64% II. YEAR END RATE OF RETURN!JURISDICTIONAL\ NET INCOME 2,161,566,794 (A) (226,543,635) (B) 1,935,23,158 (76,141,52) 1,861 '132,577 29,185,452, % 1,858,881,656 RATE BASE 3,657,4,529 (349,79,246) 3,37,925,282 3,37,925,282 YEAR END RATE OF RETURN 7.5% 6.38% 6.13% (A) INCLUDES AFUDC EARNINGS (B) INCLUDES REVERSAL OF AFUDC EARNINGS Ill. REQUIRED RATES OF RETURN AVERAGE CAPITAL STRUCTURE!FPSC ADJUSTED BASIS\ LOW 5.72% MIDPOINT 6.18% HIGH 6.64% IV. FINANCIAL INTEGRITY INDICATORS A. TIMES INTEREST EARNED WITH AFUDC 6.64 (SYSTEM PER BOOKS BASIS) B. TIMES INTEREST EARNED WITHOUT AFUDC 6.63 (SYSTEM PER BOOKS BASIS) C. AFUDC AS PERCENT OF NET INCOME 5.19% (SYSTEM PER BOOKS BASIS) D. PERCENT OF CONSTRUCTION GENERATED INTERNALLY 64.31% (SYSTEM PER BOOKS BASIS) E. L TO TO INVESTOR FUNDS 37.9% (FPSC ADJUSTED BASIS) F. SID TO INVESTOR FUNDS 3.4% (FPSC ADJUSTED BASIS) G. RETURN ON COMMON EQUITY (AVERAGE) 11.5% (FPSC ADJUSTED) H. RETURN ON COMMON EQUITY 1.93% (PROFORMA ADJUSTED) NOTE: THIS REPORT HAS BEEN PREPARED USING A THIRTEEN MONTH AVERAGE AND END OF PERIOD RATE BASE AND ADJUSTMENTS CONSISTENT WITH DOCKET NO EI, ORDER NO. PSC S-EI. THIS REPORT DOES NOT NECESSARILY REPRESENT THE OPINION OF THE COMPANY AS TO THE ACTUAL EARNED RATE OF RETURN FOR THE PERIOD COVERED. I AM AWARE THAT SECTION 837.6, FLORIDA STATUES, PROVIDES: WHOEVER KNOWINGLY MAKES A FALSE STATEMENT IN WRITING WITH THE INTENT TO MISLEAD A PUBLIC SERVANT IN THE PERFORMANCE OF HIS OFFICIAL DUTY SHALL BE GUlL TY OF A MISDEMEANOR OF THE SECOND DEGREE, PUNISHABLEI}P~f'ED IN J/ 775~. 775.~ { J KIMBERLYOUSDAHL ~~r~ r /3 17 (VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER) ""(} (SIGNA l'uf\e) l(. QVSctQitd (DATE).

3 AVERAGE RATE OF RETURN RATE BASE NOVEMBER. 216 SCHEDULE 2: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATION NET CONSTRUCTION PLANT IN PROPERTY HELD WORK IN SERVICE FOR FUTURE USE PROGRESS NET WORKING NUCLEAR FUEL UTILITY PLANT CAPITAL RATE BASE SYSTEM PER BOOKS 42,591,661, , , (1,52,516,832) 3 892,871,686 JURISDICTIONAL PER BOOKS ,669,95,271 28,22,277, ,859,32, ,783,41,836 (2,151,38,296) _! 29,632,3,542 FPSC ADJUSTMENTS {2,218,163 29) (452,466,756) (SEE SCHEDULE 2, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 36,474,2,161 12,217,436,515 {1,765,694,273) (288,737) (1,86 472,43) 26,256,583, ,724,3 1,52,83,31 {3,572,455,54) 3,125,876,554 (446,578,49) 667,818,14 28,21,955, ,496,288 29,185,452,52 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMJ;:NTS: PRO FORMA ADJUSTED 36,474,2,161 12,217,436,515 26,256,563, ,724,3 1,52,83,31 667,818,14 28,21,955, ,496,288 29,185,452,52 NOTE: THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL OF THE PROFORMA ADJUSTMENTS THAT WOULD BE MADE IN A BASE RATE FILING.

4 AVERAGE RATE OF RETURN INCOME STATEMENT NOVEMBER, 216 SCHEDULE 2: PAGE 2 OF 3 REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INCOME TAXES (NET) INVESTMENT TAX CREDIT (NET) (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME(A) SYSTEM PER BOOKS 1,873,51,698 3,361,668,668 1,62,878,282 1,483,28,261 1,2,469,655 (159,95, 183) 1,231,883,845 4,476,11 (6,416, 132) 8,719,73,76 2,154,427,992 JURISDICTIONAL PER BOOKS 1,431 '12,378 3,177,6,985 1,543,933,541 1,433,392,695 1' 182~"53,~82 (1 2,5!l,211) 1,1!!1,47726_ - 4,:j7,6Q7 (6,38,83) - 8,36~,45~.~75 2,!>7,643, 13 FPSC ADJUSTMENTS FRANCHISE REVENUE (462,965,377) FRANCHISE EXPENSE GROSS RECEIPTS TAX (242,447,45) FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL REC RETAIL, INCL GAS RESERVES (1) (2,959,559,15) CONSERVATION RECOVERY (68,52,322) CAPACITY RECOVERY (361,741,589) ENVIRONMENTAL RECOVERY (239, 761,86) OTHER RATE CASE ADJUSTMENTS (2) STORM DEFICIENCY RECOVERY (118,223,245) INTEREST TAX DEFICIENCIES INTEREST SYNCHRONIZATION FPSC ADJUSTMENTS (4,453,217,679) (41,142) (2,141,92) (112,132) (117,365) (3, 794,514) (2,91,211,988) (1,31,166) (55,43, 776) (236,596,919) (48,21,765) (61,674,627) (579,987) 743,672 (3, 139,88,97) (199,633,723) (12,592,246) (9,918,96) (34,11.4) (51,436,678) (2,234,224) (15,57,398) (215,25,853) (11,97,469) (451,57,839) (242,244,857) (2,415,313) (1,6,239) (431,751) (352,941) (79,49,41) (173,995,588) 173,995,562 (77,994) 158, ,245 43,255 45,274 11,878,984 (35,88,48) (4,47,294) (18, 135,435) (67,532,41) 661,852 (4,854,996) (266,872) 22,382,879 (94,548,364) 19,68,228 3,91,637 2,512,654 18,56,43 (8,598,231) 35,226, ,91 654,91 (185,93,57) (277,62,32) (277,62,278) 277,62,278 (242,322,851) (124,194) (251,93) 251,93 (1,315,674) 1,315,674 (68,877) 68,877 (72,92) 72,92 (18,915,53) 18,915,53 (2,933,668,895) (25,89, 12) (66,998,579) (1,521,743) (336,864,615) (24,876,974) (161,78,973) (77,98, 113) (1,372,372) 1,372,372 (11,492,381) (7, 73,665) 456,81 (458,81) 13,784,648 (13,784,648) (4,322,848,656) (13,369,24) FPSC ADJUSTED 5,977,884,699 37,252,78 1,344,299,818 1,218,141, ,762,872 (247, 131,575) 1,216,73, 97-4,3Q7,87 (5,725,!)2) 4,4Q,61,62 1,937,274,6 PRO FORMA ADJUSTMENTS (124,47,84) (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 5,853,836,895 37,252,78 1,344,299,818 1,218,141,842 (89,314) 472,673,558 (47,816,988) (294,948,582) 1,216,73,897 4,37,67 (5, 725,92) (47,96,32) (76, 141,52) 3,992,74,318 1,861,132,577 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 97,848,998 AND THE JURISDICTIONAL NOI BY 93,923,691 (B) ECONOMIC DEVELOPMENT S RELATED TO THE PERIOD ARE: ON A COMPANY BASIS 2,323,31 ON A JURISDICTIONAL BASIS 2,242,638 CURRENT MONTH AMOUNT SYSTEM PER BOOKS 77,594,397 JURISDICTIONAL PER BOOKS 737,771,78 231,536, ,43,36 218,862, ,717,48 73,147,987 7,81,856 89,669,873 68,235,95 (25,491,251) (24,363,652) 17,977,31 13,198,551 (33,4) (31,796) (858,233) (638,66) 6,379,73 17,214, ,86, ,911,217 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

5 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS NOVEMBER, 216 SCHEDULE 2: PAGE 2A OF 3 REVENUES OPERATION & MAINTENANCE FUEL& NETINTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INCOME TAXES (NET) INVESTMENT TAX CREDIT (NET) (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1) (124,47,84) (89,314) (47,816,988) (47,96,32) (76, 141,52) PROFORMA ADJUSTMENTS (124,47,84) (89,314) (47,816,988) (47,96,32) (76,141,52). FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

6 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS NOVEMBER, 216 SCHEDULE 2: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY 1,624,589,988 99,438,673 1,541,498,673 94,46,264 FUEL CLAUSE- GAS RESERVES (1) 91,543,589 86,41,834 CAPITALIZED EXECUTIVE COMPENSATION 14,351,73 13,852,818 LOAD CONTROL 5,17,943 5,17,943 ASSET RETIREMENT OBLIGATION CAPITAL LEASES 388,961,17 59,224,688 2,328,127,59 375,456,77 57,168,466 2,218,451,767 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL ACCUM PROV DECOMMISSIONING S (229,963,847) (3,896,127,547) (218,22,111) (3,684,325,884) ASSET RETIREMENT OBLIGATION 33,99,739 32,81,615 ASSET RETIREMENT OBLIGATION DECOMMISSIONING FUEL AND CAPACITY FUEL CLAUSE- GAS RESERVES (1) 3,613,737,4 (34,85,245) (7,951,564) 3,488,272, 85 (32,899,823) (7,55,728) OTHER RATE CASE ADJUSTMENTS (2) (179,46) (171,863) LOAD CONTROL (23,974,519) (23,974,519) CAPITAL LEASES (6,74,295) (552,22,923) (6,471,528) (452,468,756) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS CWIP- CLAUSE PROJECTS (1) 1,886,846,263 28,617,365 1,915,463,628 1,779,39,315 27,81,728 1,86,472,43 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (3,227,852,99) (3,125,876,564) ADJUSTMENTS 463,714, ,678,49 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

7 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT NOVEMBER, 216 SCHEDULE 2: PAGE 3A OF 3 REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME DEFERRED INVESTMENT (GAIN)JLOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS 1,873,51,698 3,361,668,668 1,62,878, ,2,489,655 (159,95, 183) (6,416, 132) ,154,427,992 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION - EXPENSES (462,965,377) (242,447,45) (11,97,469) (451,57,839) (242,244,857) (424,894) (2,218,96) (116,185) (121,587) (173,995,588) (185,93,57) (277,82,32) 173,995,562 (277,82,278) 277,62,278 (77,994) (242,322,851) (124,194) 163,93 (26,991) 26, ,964 (1,362,996) 1,362,996 44,811 (71,354) 71,354 46,92 (74,685) 74,685 EXECUTIVE COMPENSATION ADVERTISING EXPENSES FUEL RECOVERY, INCL GAS RESERVES (1) (3, 127,294,58) (31,92,124) (3,7,212,896) (1,378,455) (13,34,219) (2,434,8) 12,36,244 (19,595,88) 19,595,88 (34,83,825) 19,5,885 (3, 12,696,51) (24,597,998) CONSERVATION RECOVERY CAPACITY RECOVERY ENVIRONMENTAL RECOVERY (68,52,322) (362, 15,415) (239,761,86) (55,43, 776) (9,918,96) (1,8,239) (252,27, 75) (5,915,85) (34, 111,58) (441,688) (63,9,35) (54,29,268) (362,68) (4,47,294) 3,91,637 (66,998,579) (1,521,743) (12,23,257) 2,512,654 (347,6, 183) (15, 144,232) (65,613,828) 18,56,43 69,212 (164,835,444) (74,925,642) OTHER RATE CASE ADJUSTMENTS (2) (2,327,598) 897,871 (1,429, 727) 1,429,727 STORM DEFICIENCY RECOVERY INTEREST TAX DEFICIENCIES INTEREST SYNCHRONIZATION (118,223,245) (598,51) (15,57,398) 77,421 (4,848,28) (11,53,476) (7,719,769) (297,19) 473,231 (473,231) 22,831,16 (8,97,49) 13,923,526 (13,923,526) FPSC ADJUSTMENTS (4,621,361,998) (3,322,24,646) (25,848,98) (218,964,446) (79,529,553) (84,591,731) 34,757,889 69,212 (4,55,727,255) (115,634,743) FPSC ADJUSTED 6,252, 139,7 39,428,221 1,397,29,32 1,264,243,816 49,94,12 (243,686,914) 1,266,641,734 4,476,11 (5,725,92) 4,21~.346,451 2,38,793,249 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 3C OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED (124,47,84) 6,128,91,996 (89,314) 39,428,221 1,397,29,32 1,264,243,816 49,85,788 (47,816,988) (47,96,32) (76,141,52) (291,53,91) 1,286,641,734 4,476,11 (5,725,92) 4,165,44,149 1,962,651,746 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 97,848,998 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

8 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS NOVEMBER, 216 SCHEDULE 2: PAGE 3B OF 3 WORKING CAPITAL ADJUSTMENTS ADJUSTMENTS TO ASSETS PER BOOKS: ACCOUNTS RECEIVABLE- ASSOC COS INTEREST & DIVIDENDS RECEIVABLE NET UNDERRECOVERED FUEL, CAPACITY,ECCR, ECRC FUEL CLAUSE- GAS RESERVES (1) CASH CAPITAL SUB ACCOUNT POlE ATTACHMENTS RENTS RECEIVABLE PREPAYMENTS-ECCR PREPAYMENTS -INTEREST ON COMMERCIAL PAPER TEMPORARY CASH INVESTMENTS STORM DEFICIENCY RECOVERY NUCLEAR RECOVERY JOBBING ACCOUNTS OTH REG ASSETS- ClAUSES MISC. DEFFERED DEBIT- ClAUSES CEDAR BAY TRANSACTION SYSTEM 14,535,424 (31,757) (514,514) 6,139,59 1,866,9 16,43,964 53,899,81 8,547,21 2,162,96 347,156,486 8,462 8,152,778 6,488,6 11,727,239 71,112,589 JURISDICTIONAL 14,1,53 (299,332) 341,777 5,795,35 1,761,384 16,43,964 53,899,81 8,24,321 2,82,61 347,156,486 8,462 7,853,55 6,124,281 11,69,75 663,696,964 ADJUSTMENTS TO ASSETS PER BOOKS ADJUSTMENTS TO LIABILITIES PER BOOKS: ACCOUNTS PAYABLE- ASSOC COS ACCUM DEFERRED RETIREMENT BENEFITS ACCUM. PROV. - PROPERTY & STORM INSURANCE ACCUM. PROV.- RATE REFUNDS GAIN ON SALE OF EMISSION ALLOWANCE JOBBING ACCOUNTS FUEL CLAUSE- GAS RESERVES (1) POLE ATTACHMENT RENTS PAYABLE SJRPP ACCELERATED RECOVERY STORM DEFICIENCY RECOVERY ASSET RETIREMENT OBLIGATION MARGIN CALL CASH COLLATERAL NUCLEAR RECOVERY CEDAR BAY TRANSACTION ADJUSTMENTS TO LIABILITIES PER BOOKS NET ADJUSTMENTS TO WORKING CAPITAL PER BOOKS 1,177,472,78 (1 1,858) (63,8,621) (27,391) (14,335) (14,425,827) 19,299,98 (7,66,27) (24,287,37) (33,883,417) (4,36,949,426) 3,846 (237,617,952) (6,473,1 3) (4,45,325,618) (3,227,852,99) 1,138,198,161 (98,321) (63,8,621) (26,92) (13,62) (13,895,485) 18,217,85 (7,66,27) (22,993,11) (33,883,417) (3,896,79,616) 3,75 (237,617,952) (6,128,145) (4,264,74,724) (3,125,876,564) NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216.

9 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS NOVEMBER, 216 SCHEDULE 2: PAGE 3C OF 3 OPERATION & MAINTENANCE FUEL & REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME DEFERRED INCOME TAXES INCOME TAXES CURRENT ~ INVESTMENT TAX CREDIT (NET} (GAIN}ILOSS ON DISPOSITION EXPENSES NET INCOME(A} WEATHER NORMALIZATION ADJUSTMENT (1) (124,47,84) (89,314) (47,816,988} (47,96,32} (76,141,52) PROFORMA ADJUSTMENTS (124,47,84) (89,314} (47,816,988} (47,96,32} ("76,141,52) FOOTNOTES: (1} ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

10 YEAR END RATE OF RETURN RATE BASE NOVEMBER, 216 SCHEDULE 3: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATION NET CONSTRUCTION PLANT IN PROPERTY HELD WORK IN SERVICE FOR FUTURE USE PROGRESS NET WORKING NUCLEAR FUEL UTILITY PLANT CAPITAL RATE BASE SYSTEM PER BOOKS 43, , ,293,39, (1,52,516,832) 32,13, JURISDICTIONAL PER BOOKS 41,785,383, ,84,668, (2, 151,38 296) 3,657,4,529 FPSC ADJUSTMENTS (2,181,199,185) (494,251,485) (SEE SCHEDULE 3, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3) FPSC ADJUSTED: 39,64,164,116 12,488,463,174 (1,686,947,7) (1,788,8,11) 27,117,72, ,17,472 1,37,993,939 (3 474,955,81) {349,79,246) 656,66,662 29,333,429,15 974,496,288 3,37,925,282 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 39,64,184,116 12,488,463,174 27,117,72, ,17,472 1,37,993, ,66,662 29,333,429,15 974,496,288 3,37,925,282

11 YEAR END RATE OF RETURN INCOME STATEMENT NOVEMBER, 216 SCHEDULE 3: PAGE 2 OF 3 REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS ,361,668,868 1,62,878, ,2,469,655 (159,95,183) 1,231,983, (6,416, 132) JURISDICTIONAL PER BOOKS 1,431,12,378 3,177,6,985 1,543,933,541 1,433,392,695 1,182,253,282 (152,585,211) 1 '181,477,26 4,37,67 (6,36,83) 8, ,275 2,67,643,13 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL REC RETAIL, INCL GAS RESERVES (1) CONSERVATION RECOVERY CAPACITY RECOVERY ENVIRONMENTAL RECOVERY OTHER RATE CASE ADJUSTMENTS (2) STORM DEFICIENCY RECOVERY INTEREST TAX DEFICIENCIES INTEREST SYNCHRONIZATION (482,965,377) (242,447,45) (2,959,559,15) (68,52,322) (361,741,589) (239,761,86) (118,223,245) (4,453,217,679) (11,97,469) (451,57,839) (242,244,857) (41,142) (2,141,92) (112,132) (117,365) (3,794,514) (2,91,211,968) (1,31,166) (12,592,246) (2,415,313) (55,43,776) (9,918,96) (1,6,239) (238,596,919) ( 48,21 '765) (34,11,4) (431,751) (61,674,627) (51,436,678) (352,941) (2,234,224) (579,987) (15,57,398) 743,672 (3, 139,88,97) (199,633,723) (215,25,853) (79,49,41) (173,995,588) (185,93,57) (277,62,32) 173,995,562 (277,62,278) 277,62,278 (77,994) (242,322,851) (124,194) 158,212 (251,93) 251,93 826,245 (1,315,674) 1,315,674 43,255 (68,877) 68,877 45,274 (72,92) 72,92 11,878,984 (18,915,53) 18,915,53 (35,88,48) 19,66,228 (2,933,668,895) (25,89, 12) (4,47,294) 3,91,637 (66,998,579) (1,521,743) (18,135,435) 2,512,654 (336,864,615) (24,876,974) (67,532,41) 18,56,43 654,91 (161,78,973) (77,98, 113) 861,852 (1,372,372) 1,372,372 (4,854,996) (11,492,361) (7, 73,865) (286,872) 456,81 (456,81) 24,633,8 (8,598,231) 16,35,569 (16,35,569) (92,295,443) 35,226, ,91 (4,32,597,734) (132,619,945) FPSC ADJUSTMENTS FPSC ADJUSTED 5,977,884,699 37,252,78 1,344,299,818 1,218,141, ,762,872 (244,86,gs.\) 1,216,73,897 4,37,67 (5,725,92) 4,42,861,541 1,935,23,158 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED (124,47,84) 5,853,836,895 (89,314) 37,252,78 1,344,299,818 1,218,141, ,673,558 (47,816,968) (47,96,32) (76, 141,52) (292,697,641) 1,216,73,897 4,37,67 (5, 725,92) 3,994,955,239 1,858,861,656 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY AND THE JURISDICTIONAL NOI BY 97,848,998 93,923,691 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATIONJDISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

12 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS NOVEMBER, 216 SCHEDULE 3: PAGE 2A OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER TAXES OTHER DEPRECIATION & THAN INCOME TAXES AMORTIZATION INCOME CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON (NET) (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1). (124,47,64) PROFORMA ADJUSTMENTS (124,47,84) (89,314) (47,816,988) (89,314) (47,816,988) (47,96,32) (76,141,52) (47,96,32) (76, 141,52) FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

13 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS NOVEMBER, 216 SCHEDULE 3: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY FUEL CLAUSE- GAS RESERVES (1) 1,629,916, ,72,36 1,546,552,753 18,514,127 CAPITALIZED EXECUTIVE COMPENSATION 16,934,216 16,346,277 LOAD CONTROL 47,787,82 47,787,82 ASSET RETIREMENT OBLIGATION 419,391,323 44,83,479 CAPITAL LEASES 59,224,688 2,287,974,167 57,168,466 2,181,199,185 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL (257,362,691) (244, 199,613) ACCUM PROV DECOMMISSIONING S (4,46,44,751) (3,826,93,274) ASSET RETIREMENT OBLIGATION 19,464,649 18,788,856 ASSET RETIREMENT OBLIGATION DECOMMISSIONING 3,751,28,438 3,62,97,267 FUEL AND CAPACITY (35,697,413) (33,72,3.98) FUEL CLAUSE- GAS RESERVES (1) OTHER RATE CASE ADJUSTMENTS (2) (2,327,598) (2,234,224) LOAD CONTROL (2,655,715) (2,655,715) CAPITAL LEASES (7,381,667) (598,796,749) (7, 125,383) (494,251,485) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS 1,882,96,946 1,772,951,191 CWIP- CLAUSE PROJECTS (1) 15,899,572 1,897,996,518 15,56,919 1,788,8,11 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (3,227,852,99) (3, 125,876,564) ADJUSTMENTS 359,321,26 349,79,246 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

14 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT NOVEMBER, 216 SCHEDULE 3: PAGE 3A OF 3 REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS 1,873,51,698 3,361,668,988 1,62,878,282 1,483,28,281 1,2,489,655 (159,95,183) 1,231,863, (6,416132) 8,719,73, FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE (482,965,377) (11,97,489) (451,57,839) (173,995,588) (185,93,57) (277,62,32) 173,995,562 (277,62,278) 277,62,278 GROSS RECEIPTS TAX (242,447,45) (242,244,857) (77,994) (242,322,851) (124,)94) FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES (424,894) (2,218,98) 163,93 (28,991) 28, ,984 (1,362,996) 1,382,996 ECONOMIC DEVELOPMENT 5% (116,165) 44,811 (71,354) 71,354 AVIATION - EXPENSES EXECUTIVE COMPENSATION (121,587) (31,92, 124) 48,92 (74,685) 74,685 12,36,244 (19,595,88) 19,595,88 FUEL REC RETAIL, INCL GAS RESERVES (1) (3, 127,294,58) (3,7,212,896) (1,378,455) (13,34,219) (2,434,8) (34,63,825) 19,5,585 (3, 12,696,51) (24,597,996) CONSERVATION RECOVERY (68,52,322) (55,43,776) (9,918,96) (1,8,239) (4,47,294) 3,91,637 (66,996,579) (1,521,743) CAPACITY RECOVERY (362,15,415) (252,27, 75) (5,915,85) (34,111,58) (441,666) (12,23,257) 2,512,654 (347,6, 183) (15, 144,232) ENVIRONMENTAL RECOVERY (239, 761,66) (63, 9,35) (54,29,266) (362,68) (65,613,828) 18,58,43 69,212 (184,835,444) (74,925,642) OTHER RATE CASE ADJUSTMENTS (2) STORM DEFICIENCY RECOVERY INTEREST TAX DEFICIENCIES INTEREST SYNCHRONIZATION (118,223,245) (2,327,598) (598,51) (15,57,398) 77, ,871 (1,429, 727) 1,429,727 (4,848,28) (11,53,476) (7, 719, 769) (297,19) 473,231 (473,231) 24,915,85 (8, 97,49) 16,8,315 (16,8,315) FPSC ADJUSTMENTS (4,621,361,996) (3,322,24,846) (25,848,98) (218,984,446) (79,529,553) (82,56,941) 34,757,669 69,212 (4,53,842,466) (117,719,532) FPSC ADJUSTED 6,252,139,7 39,428,221 1,397,29,32 1,284,243,816 49,94,12 (241,82,124) 1,266,841,734 4,476,11 (5, 725,92) 4,215,431,24 2,36, 78,48 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 3, PAGE 3B OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED (124,47,84) 6,128,91,896 (89,314) 39,428,221 1,397,29,32 1,284,243,816 49,85,788 (47,816,966) (47,96,32) (76, 141,52) (289,419,112) 1,266,841,734 4,476,11 (5, 725, 92) 4,167,524,938 1,98,588,957 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 97,848,996 NOTES: (1) AMOUNTS ASSOCIATED WITH FPL'S WOODFORD PROJECT HAVE BEEN MOVED BELOW THE LINE BEGINNING JULY 1, 216. (2) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

15 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS NOVEMBER. 216 SCHEDULE 3: PAGE 3B OF 3 OPERATION & MAINTENANCE FUEL & REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME DEFERRED INCOME TAXES INCOME TAXES CURRENT ~ INVESTMENT TAX CREDIT (NET\ (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME(A\ WEATHER NORMALIZATION ADJUSTMENT (1) (124.47,84) (89,314) (47,816,988) (47.96,32) (76,141,52) PROFORMA ADJUSTMENTS (124.47,84) (89,314) (47,816,988) (47.96,32) (76,141,52) FOOTNOTES (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

16 CAPITAL STRUCTURE FPSC ADJUSTED BASIS NOVEMBER, 216 SCHEDULE 4: PAGE 1 OF 2 LOWPOINT MIDPOINT HIGHPOINT AVERAGE SYSTEM PER BOOKS 1 RETAIL PER BOOKS 2 ADJUSTMENTS PRO RATA SPECIFIC _3 4 ADJUSTED RETAIL 5 RATIO 6 RATE 7 WEIGHTED 8 RATE 9 WEIGHTED 1 RATE 11 WEIGHTED 12 LONG TERM DEBT 8,814,245,739 8,456,383,897 11,77,719 (272,117,221) 8,285,344, % 4.57% 1.3% 4.57% 1.3% 4.57% 1.3% SHORT TERM DEBT 7,94, ,711,628 8,295,85 68,7, % 1.71%.4% 1.71%.4% 1.71%.4% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 13,782,631,453 13,28,575,36 163,129,17 13,371,74, % 9.5% 4.35% 1.5% 4.81% 11.5% 5.27% CUSTOMER DEPOSITS 416,94, ,852,218 5,148,228 () 422,, % 2.9%.3% 2.9%.3% 2.9%.3% DEFERRED INCOME TAX 7,23,555,43 6,731,778,94 78,346,645 (388,48,125) 6,422,77,46 22.%.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 154,593, ,728,822 52,679 (142,463,39) 4,318,111.1% 7.61%.% 8.23%.% 8.85%.% 3,892,871,686 29,632,3, ,5,246 (82,628,736) 29,185,452,52 1.% 5.72% 6.18% 6.64% LOWPOINT MIDPOINT HIGH POINT YEAREND SYSTEM PER BOOKS 1 RETAIL PER BOOKS 2 ADJUSTMENTS PRO RATA SPECIFIC _3 4 ADJUSTED RETAIL 5 RATIO 6 RATE 7 WEIGHTED 8 RATE 9 WEIGHTED 1 RATE 11 WEIGHTED 12 LONG TERM DEBT 8,81,365,353 8,439,6, ,82,774 (271,463,367) 8,29,625, % 4.54% 1.24% 4.54% 1.24% 4.54% 1.24% SHORT TERM DEBT 455,294, ,64,248 6,564,444 () 442,168, % 1.78%.3% 1.78%.3% 1.78%.3% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 14,717,224,143 14,8,738, ,193,12 () 14,292,932, % 9.5% 4.48% 1.5% 4.95% 11.5% 5.42% CUSTOMER DEPOSITS 416,996, ,937,33 6,283, ,22, % 2.16%.3% 2.16%.3% 2.16%.3% DEFERRED INCOME TAX 7,459,917,32 7,138,666,613 11,73,87 (388,48,125) 6,852,348, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 153,879, ,51,358 98,43 (139,519,743) 6,63,44.2% 7.68%.% 8.31%.% 8.94%.% 32,13,676,926 3,657,4, ,951,989 (799,31,235) 3,37,925,282 1.% 5.78% 6.25% 6.72% NOTE: (1) INVESTMENT TAX CREDITS RATES ARE BASED ON THE WEIGHTED AVERAGE OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

17 CAPITAL STRUCTURE PROFORMA ADJUSTED BASIS NOVEMBER, 216 SCHEDULE 4: PAGE 2 OF 2 LOWPOINT MIDPOINT HIGH POINT WEIGHTED WEIGHTED WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE RATE RATE AVERAGE ADJUSTED ADJUSTMENTS ADJUSTED LONG TERM DEBT 8,285,344,395 8,285,344, % 4.57% 1.3% 4.57% 1.3% 4.57% 1.3% SHORT TERM DEBT 68,7,433 68,7, % 1.71%.4% 1.71%.4% 1.71%.4% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 13,371,74,26 13,371,74, % 9.5% 4.35% 1.5% 4.81% 11.5% 5.27% CUSTOMER DEPOSITS 422,, ,, % 2.9%.3% 2.9%.3% 2.9%.3% DEFERRED INCOME TAX 6,422,77,46 6,422,77,46 22.%.%.%.%.%.%.% INVESTMENT TAX CREDITS(1) 4,318,111 4,318,111.1% 7.61%.% 8.23%.% 8.85%.% 29,185,452,52 29,185,452,52 1.% 5.72% 6.18% 6.64% LOWPOINT MIDPOINT HIGH POINT WEIGHTED WEIGHTED WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE RATE RATE YEAR END ADJUSTED ADJUSTMENTS ADJUSTED LONG TERM DEBT 8,29,625,722 8,29,625, % 4.54% 1.24% 4.54% 1.24% 4.54% 1.24% SHORT TERM DEBT 442,168, ,168, % 1.78%.3% 1.78%.3% 1.78%.3% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 14,292,932,81 14,292,932, % 9.5% 4.48% 1.5% 4.95% 11.5% 5.42% CUSTOMER DEPOSITS 423,22, ,22, % 2.16%.3% 2.16%.3% 2.16%.3% DEFERRED INCOME TAX 6,852,348,575 6,852,348, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 6,63,44 6,63,44.2% 7.68%.% 8.31%.% 8.94%.% 3,37,925,282 3,37,925,282 1.% 5.78% 6.25% 6.72% NOTE: (1) INVESTMENT TAX CREDITS RATES ARE BASED ON THE WEIGHTED AVERAGE OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

18 NOVEMBER, 216 SCHEDULE 5: PAGE 1 OF 2 A. TIMES INTEREST EARNED WITH AFUDC EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC TIMES INTEREST EARNED WITH AFUDC D. PERCENT INTERNALLY GENERATED FUNDS 2,165,963,266 NET INCOME 23,91,252 PREFERRED DIVIDENDS DECLARED 1,62,114,15 COMMON DIVIDENDS 3,251,168,668 AFUDC (DEBT & OTHER) DEPRECIATION AND AMORTIZATION EXPENSE 475,279,94 DEFERRED INCOME TAXES INVESTMENT TAX CREDITS 6.84 OTHER SOURCE/USES OF FUNDS INTERNALLY GENERATED FUNDS 1,713,774,614 (2,,,) (97,848,998) 1,483,28,261 1,22,529,153 4,476, ,529,385,7 4 B. TIMES INTEREST EARNED WITHOUT AFUDC CONSTRUCTION EXPENDITURES PERCENT INTERNALLY GENERA TED FUNDS 3,932,96, % EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC 2,165,963,266 (74,757,747) 1,62,114,15 3,153,319,67 475,279,94 E. LONG TERM DEBT AS A PERCENT OF INVESTOR CAPITAL TIMES INTEREST EARNED WITHOUT AFUDC C. PERCENT AFUDC TO NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION X (1 -INCOME_ TAX_RATE) SUB ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION NET INCOME AVAILABLE FOR COMMON AFUDC AS PERCENT OF NET INCOME 6.63 F. SHORT TERM DEBT AS A PERCENT OF INVESTOR CAPITAL AVERAGE RETAIL AMOUNTS JURIS ADJUSTED LONG TERM DEBT JURIS ADJUSTED SHORT TERM DEBT JURIS ADJUSTED PREFERRED STOCK JURIS ADJUSTED COMMON STOCK 23,91, LTD TO INVESTOR FUNDS 14,183,81 STD TO INVESTOR FUNDS ,941, , % G. FPSC ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY 8,285,344,395 68,7, ,337,56, % 3.4% FPSC RATE OF RETURN 6.64% FOOTNOTES CLAUSE OVER/UNDER RECOVERY GAINS ON DISPOSITION OF PROPERTY LONG TERM DEBT RETIREMENTS & REDEMPTIONS INCREASE/DECREASE IN DECOMMISSIONING FUNDS INCLUDES EXPENDITURES FOR NUCLEAR FUELS OF: LESS: RECONCILED AVG. RETAIL WEIGHTED RATES FOR: LONG TERM DEBT 1.3% SHORT TERM DEBT.4% PREFERRED STOCK.% CUSTOMER DEPOSITS.3% TAX CREDITS- WTD.% 211,662,66 SUB 1.37% (6,416,132) 5.27% 25,245,934 DIVIDED BY COMMON EQUITY RATIO 45.82% JURISDICTIONAL RETURN ON COMMON EQUITY 11.5%

19 FINANCIAL INTEGRITY INDICATORS NOVEMBER, 216 SCHEDULE 5: PAGE 2 OF 2 H. PROFORMA ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY PRO FORMA RATE OF RETURN 6.38% LESS: AVERAGE RETAIL WEIGHTED RATES FOR: LONG TERM DEBT 1.3% SHORT TERM DEBT.4% PREFERRED STOCK.% CUSTOMER DEPOSITS.3% TAX CREDITS- WTD.% SUB 1.37% PRO FORMA ROR LESS NON EQUITY 5.1% PRO FORMA COMMON EQUITY RATIO 45.82% PRO FORMA RETURN ON COMMON EQUITY 1.93%