BUILDING THE NEXT ERA OF CLEAN ENERGY

2010 Mid-America Regulatory Conference Integrating Renewables to the Grid

F. Allen Wiley Vice President, Business Management Midwest and Canada June 7, 2010

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

Top 10 U.S. Competitive Generators

MW 000s 35 30 29.3

25 20 24.9

24.9

23.4

18.1

15.5

15 10 5 12.3

11.7

9.9

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0 C al pi ne + C on ec tiv R R I + M E ir xe an lo t n G en er at io n NRG N ex tE ra E ne rg y P SE G P D ow yn er eg y G en er P at PL io E n ne rg y S up pl E y di so n M is si on

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

A ES 9.9

1,961 MW NextEra Energy Resources has 18,148 MW located across 26 states and Canada

NextEra Energy Resources Portfolio

3,766 MW 5,174 MW Wind Hydro Natural Gas/Oil Solar Nuclear Other States and provinces with NextEra Energy Resources power generation facilities

3 As of December 31, 2009

7,247 MW

NextEra Energy Resources’ portfolio consists of primarily low carbon generation capacity NextEra Energy Resources Portfolio by Fuel Type (1) Hydro 359 MW Solar 148 MW CO 2 Emission Rate (2) 10,603 MW of “No Carbon” Generation Nuclear 2,552 MW Natural Gas 6,693 MW Wind 7,544 MW 6,693 MW of “Low Carbon” Generation Oil 796 MW Other 56 MW Lbs / MWh 1,400 1,200 1,000 800 600 400 200 0 1,297 361 Industry Average NextEra Energy Resources With 95% of “no carbon” to “low carbon” generation assets, NextEra Energy Resources has one of the lowest carbon emission rates of any generator

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

Since 2002, NextEra Energy Resources has added more than 13,000 MW of capacity, primarily through the development of new projects MW 20,000

NextEra Energy Resources Capacity Growth 2002-2009

18,148 16,928 16,000 15,543 3,491 MW of Acquisitions 13,343 12,053 12,000 11,041 11,520 9,594 MW of New Build 8,000 7,250 4,000

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0 2002 (2) 2003 2004 Existing at 1/1/2002 2005 2006 Development 2007 2008 2009 Acquisitions/Divestitures 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

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

Integrating Renewable Resources to the Grid

• • •

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

Transmission Cost Allocation Rules

• •

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

Transmission Cost Allocation Proposals

• •

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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What the Midwest should do…

• •

Conclusion

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