BUILDING THE NEXT ERA OF CLEAN ENERGYBUILDING THE NEXT ERA OF CLEAN ENERGY

2010 Mid-America Regulatory Conference -Integrating Renewables to the Grid

F. Allen WileyVice President, Business Management Midwest and Canada

June 7, 2010

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Top 10 U.S. Competitive Generators

NextEra Energy Resources is the 5th largest competitive generator in the U.S. today

29.3

24.9 24.923.4

18.115.5

12.3 11.79.9 9.9

0

5

10

15

20

25

30

35

MW 000s

(1) Proforma for Calpine’s pending acquisition of 4,490 MW from Conectiv (subsidiary of Pepco)(2) Proforma for pending mergerSource: 10-K filings; December 31, 2009; U.S. and Canada capacity

Resourc

es

(1)

(2)

3

NextEra Energy Resources has 18,148 MW located across 26 states and Canada

NextEra Energy Resources Portfolio

States and provinces with NextEra Energy Resources power generation facilities

WindHydroNatural Gas/OilSolarNuclearOther

1,961 MW

3,766 MW

7,247 MW

5,174 MW

As of December 31, 2009

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Other56 MW

NextEra Energy Resources Portfolio by Fuel Type(1)

NextEra Energy Resources’ portfolio consists of primarily low carbon generation capacity

Nuclear2,552 MW

Natural Gas6,693 MW

Wind7,544 MW

Oil796 MW

Hydro359 MW

Solar148 MW

(1) As of December 31, 2009(2) Source: Energy Information Administration

10,603 MW of “No

Carbon” Generation

6,693 MW of “Low Carbon”

Generation

With 95% of “no carbon” to “low carbon” generation assets, NextEra Energy Resources has one of the lowest carbon emission rates of any generator

1,297

361

0

200

400

600

800

1,000

1,200

1,400

IndustryAverage

NextEra EnergyResources

CO2 Emission Rate(2)

Lbs / MWh

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NextEra Energy Resources Capacity Growth 2002-2009

Since 2002, NextEra Energy Resources has added more than 13,000 MW of capacity, primarily through the development of new projects

7,250

11,041 11,520 12,05313,343

15,54316,928

18,148

0

4,000

8,000

12,000

16,000

20,000

2002 2003 2004 2005 2006 2007 2008 2009Existing at 1/1/2002 Development Acquisitions/Divestitures

MW

2002-2009 CAGR(1): 17%

9,594 MW of New Build

3,491 MW of Acquisitions

9,594 MW of new generation built from scratch since January 2002

(1) CAGR from January 1, 2002 to December 31, 2009(2) Includes 550 MW of leased capacity in 2002

(2)

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Integrating Renewable Resources to the Grid

In integrating renewables on the grid, our experience tells us that transmission is key…

• New regional transmission facilities are needed to meet regional and federal policy goals– RPS goals

– Carbon legislation

• The highest quality renewable resources are generally located in regions remote from the grid

• Transmission cost allocation policies will drive the degree and pace of renewable integration and transmission build out

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Transmission Cost Allocation Rules

Getting transmission cost allocation rules right is critical to the development of renewables…

• Transmission cost allocation rules should:– Be supportive of regional and federal renewable policy goals

– Be consistent with FERC policy and precedent

– Spread the cost of regional transmission for renewable developments broadly to regional consumers

– Provide cost certainty for developers

– Be easy to administer and understand

• The rules should not:– Foist new costs onto existing plants

– Be prejudicial to generators

– Discriminate in favor of rate-based generators versus competitive generators

– Distort least-cost economic dispatch

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Transmission Cost Allocation Proposals

Some rules will promote the integration of renewables into the grid, others will not…

• Transmission cost allocation policies that encourage renewable development:– ERCOT’s Competitive Renewable Energy Zones (CREZ)

– SPP’s Highway-Byway proposal

– Transmission Owners proposal in MISO

• Transmission cost allocation policies that discourage renewable development:– MISO’s Injection-Withdrawal and MVP proposals

– Organization of MISO States’ Cost Allocation & Regional Planning proposal (OMS CARP proposal)

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Conclusion

What the Midwest should do…

• Listen to market participants– 78% of stakeholder’s in MISO approved the Transmission

Owner’s proposal

– MISO’s proposal was only approved by 32% of stakeholders

• Propose rules to FERC along the lines of SPP’s Highway-Byway or the Transmission Owners proposal in MISO– Consistent with FERC policy and precedent

– Spreads the cost of regional transmission for renewable developments broadly to regional consumers

– Provides cost certainty for developers

– Does not place additional costs on existing generators

– Non-discriminatory

– Won’t distort market rules