2012

EMPLOYEE ANNUAL REPORT

MAKING A DIFFERENCE

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There is little doubt that 2012 is going to go in the books as a record year for Energy Resources. When I look at what we accomplished through dedicated effort and teamwork, it’s nothing short of amazing. Here are a few of the highlights:

» Added approximately 1,500 megawatts (MW) of U.S. wind, the biggest wind program ever completed by us or any other wind company in the country;

» Reached, and subsequently exceeded, the 10,000-MW mark in our total wind portfolio, again reinforcing our position as leading owner and operator of wind energy in North America;

» Stayed on track with our solar energy development goals of adding roughly 900 MW of generation through 2016;

» Met our 2012 earnings plan – the first time in the last three years that we’ve been able to accomplish that; and

» Successfully completed planned outages at all three of our nuclear sites, and with the complexity and coordination involved, that was no small accomplishment.

Not only did we meet these goals, but our Thermal, Solar & Hydro organization broke last year’s company record for reliability, with an equivalent forced outage rate of .39 percent. This performance is virtually unmatched in the industry, and I want to thank each of you who have worked so hard and succeeded in delivering certainty in our generation.

On our financial position, I’m pleased that we were able to meet our forecasted net income for 2012. While we had some challenges in the early part of the year, we were able to make up the deficits in the last quarter by solid execution in daily operations; delivery of our record renewable project backlog; meeting new business goals at PMI; and successful outages at our nuclear facilities.

Our success in 2012 cannot be attributed to just experience and expertise, although our people certainly have those qualities. Our ability to work together has driven our business

success through the years. That teamwork was in play as we planned, prepared and executed the actions necessary to meet our goals for 2012 and beyond. It is this teamwork that makes the difference. In 2012, we made a point of celebrating and recognizing the “difference makers” and our successes throughout the year via various emails, posters and videos. And this annual report will also highlight examples of how our teamwork made a difference in 2012.

Looking ahead now, no one can predict what obstacles and challenges we may face. But I am very optimistic. When I first came to Energy Resources in 2011, the company had faced two years of challenging conditions, characterized by a very weak economy, a difficult energy market and low commodity prices. Now, with the large 2012 U.S. wind program beginning to have an impact in 2013, I believe our business is well positioned to pick up again.

And while 2012 was remarkable in so many ways, I believe it is just a stepping stone to the next level of our business. We have many growth opportunities ahead, including continued investment in wind energy; expansion of our gas infrastructure activities; and potential involvement in the solar rooftop business. I also expect continued growth in our commodities and retail businesses.

Our future is bright. We have made an incredible journey to 10,000 MW of wind along with building an overall portfolio of safe, reliable and efficient thermal, solar, and nuclear power plants. But the journey is far from over. We have a lot more to do, and I’m counting on each of you to continue to make a difference in the success of our company.

Thank you for all you did in 2012, and I look forward to working with our team in the years ahead.

Team,

Armando PimentelPresident and CEO

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Energy Resources’ PortfolioNet Operating Megawatts

Adjusted Earnings GrowthIn Millions

NextEra Energy Resources Generation FacilitiesAs of 12/31/12

Represents net income before the mark-to-market effects of non-qualifying hedges, and beginning in 2006, net OTTI on certain investments, and in 2011, the after-tax charges resulting from the sale of five natural gas-fired generating assets. See www.NextEraEnergy.com/investors for GAAP net income information.

Excludes certain non-recurring items, the mark-to-market effect of non-qualifying hedges, and beginning in 2006, other than temporary impairments. See www.NextEraEnergy.com/investors for GAAP net income information.

’04 ’05 ’06 ’07 ’08 ’09 ’10

18,866

11,520 12,05313,343

15,54316,928

18,148

’11

16,607

2012

18,122

’04 ’05 ’06 ’07 ’08 ’09 ’10

$800

$151

$258

$449

$553

$737$792

’11

$679

2012

$693

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Wind development reached a pinnacle of successTeamwork across the organization was the key factor in Energy Resources’ success in 2012 in achieving two significant milestones:

» Completing a record-setting backlog of approximately 1,500 megawatts (MW) of U.S. wind projects – the largest wind build in our history and for the U.S. wind industry overall; and

» Bringing into service our 10,000th MW of wind power, marking a journey in which Energy Resources now has 100 wind facilities, more than 9,600 wind turbines in 19 states and four Canadian provinces.

The projects below were completed safely, on time and on budget in 2012 – a testimony to the efforts of hundreds of employees working across virtually every business unit.

» 59.8-MW Blackwell in Oklahoma

» 135.4-MW Blue Summit in Texas

» 165.6-MW Cimarron in Kansas

» 22.9-MW Conestogo in Ontario

» 98.9-MW Ensign in Kansas

» 200-MW Limon I in Colorado

» 200-MW Limon II in Colorado

» 79.6-MW Majestic Wind II in Texas

» 78.2-MW Montezuma II in California

» 100.8-MW Minco Wind III in Oklahoma

» 160-MW North Sky River in California

» 99.2-MW Perrin Ranch in Arizona

» 120-MW Tuscola Bay in Michigan

The operations and maintenance team are shown here for the Majestic Wind II Energy Center in Texas.

Josie Wallace, Business Services leader for PGD Wind Operations for the Northeast and Canada regions, stands at the Story County Wind Energy Center in Iowa.

WIND GROWTH SETS RECORD IN 2012

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Senior Director of Construction Joe Marchese oversaw the construction of the 2012 wind projects as well as most of the company's entire wind portfolio.

The Blue Summit Energy Center in Texas also went into service in 2012. From left, Wind Technicians Phil Lindsay, Robert Beckman and Jeremiah Gilchrist are part of the team.

Construction Manager Dave Farkas has a good view of the 43 turbines at the Ensign Wind Energy Center in Kansas.

Kevin Gildea, director of Development, Upper Midwest, led the Limon project development effort. When the last Limon II wind turbine went into service, the company exceeded 10,000 MW of wind energy.

Dean Gosselin, vice president of Business Management, and John DiDonato, vice president of Wind Development, discuss the 2012 wind program.

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Employees move forward on solar projects

A main element of Energy Resources’ growth strategy is solar development, and our solar projects continued as planned in 2012 with significant progress made on the Spain units as well as at Genesis and Desert Sunlight in California. Altogether, Energy Resources expects to add roughly 900 MW of generation through 2016.

The McCoy Solar Project also received approval from the California Public Utility Commission for its 250-MW, 20-year PPA with Southern California Edison. Partial operations are expected in 2015 with full operations planned in 2016.

Teamwork played an important role in the company’s first venture into solar energy in Canada. Virtually every business unit was involved in the acquisition of the Moore and Sombra solar photovoltaic projects, totaling 40 MW. The power is being sold to the Ontario Power Authority via long-term contracts.Units 1 and 2 at the Termosol Solar Project in Spain will begin commercial

operation in the first quarter 2013 and second quarter 2013, respectively.

From left, Solar Field Technician Charles Outhouse and Solar Field Technician Leader Michael Blackmore perform field inspections at the Sombra Solar Energy Center. Energy Resources acquired the Sombra and Moore solar projects in Canada in the first quarter of 2012.

SOLAR DEVELOPMENT MAKES GOOD PROGRESS

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Genesis, the 250-MW solar thermal plant under construction in California, is expected to achieve commercial operation in 2013 and 2014. Work crews completed all foundations for more than 23,000 solar field collector elements in 2012.

Energy Resources has a 50-percent ownership interest in the 550-MW Desert Sunlight solar photovoltaic project, which is under construction in California. Partial operations are expected in 2013 and full operations in 2015.

Both the Genesis and Desert Sunlight projects helped local communities, creating more than 1,000 construction jobs. Here, Jennifer Chaney, project manager for Desert Sunlight, walks down a row of solar panels.

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Power plants demonstrate reliability

The combined equivalent forced outage rate (EFOR) for the Energy Resources’ fleet of power plants stood at 2.99 percent in 2012.

The Thermal, Hydro and Solar (TH&S) organization EFOR was .39 percent. This EFOR places TH&S among the industry’s best performers, setting once again a new company record for reliability. Summer and winter readiness initiatives were credited for the TH&S success in achieving this record, along with the use of human performance tools and individual attention to detail in operations and maintenance.

Nuclear Fleet faced unprecedented year of planned outages

2012 was an unprecedented year for NextEra Energy’s Nuclear Fleet both in terms of challenge and workload. Between the Energy Resources’ Duane Arnold (Iowa), Seabrook (N.H.) and Point Beach (Wis.) nuclear plants and those operated by Florida Power & Light Company, the team executed seven outages in the span of one year.

During a refueling outage, nuclear units are safely shut down so teams can replace about one-third of the fuel assemblies with new fuel and conduct other maintenance and repairs at the plant.

Given the size and scale of the outages across the fleet, the entire team adopted a creative "Mission: Possible" theme to help remind employees to work safely and efficiently.

Conducting the outages, in addition to maintaining safe, reliable normal operation, required strong teamwork and focused attention to detail from each and every member of the team. As a result:

» Duane Arnold made significant material condition improvements to plant equipment that will help improve the station’s reliability;

» Point Beach completed its first post-uprate refueling outage with great safety performance, under the planned duration and budget; and

» Seabrook completed its refueling outage safely, accomplishing all planned work and under budget.

Luke Garner, PGD environmental leader, left, and Bryan Pierce, production technician leader at the Lamar Energy Center in Texas, discuss winter readiness of plant equipment.

FLEET PERFORMANCE ILLUSTRATES OPERATIONAL EXCELLENCE

Solar Tech Field Leader Ron Carver stands at one of the Harper Lake SEGS units. This site achieved excellent operations, including no injuries, no environmental recordable events and 0 percent EFOR.

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The Energy Resources’ Nuclear Fleet accomplished three refueling and maintenance outages in 2012. Here, the Seabrook Station team placed used fuel in the storage pool so new fuel could be loaded into the reactor.

Maintenance Training Coordinator Tammy Riha and Maintenance Supervisor Rick Hankins discuss work plans on the turbine deck during the refueling outage at Point Beach Nuclear Plant.

Wind Technicians Brian Taylor and Lee Dietz are part of the Lake Benton II Wind Energy Center team in Minnesota. The entire wind fleet worked to improve safety and reliability in 2012.

Duane Arnold's Facilities Helper Lee Bendull observes workers on the refueling floor of the station's reactor building as the station conducted its refueling and maintenance outage in October 2012.

From left, Wyman Plant operations staff David Lucas, David Krabbe and Brad Bell use peer-checking as one of the Human Performance tools to enhance performance.

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VALUE OF SAFETY CULTURE IS DEMONSTRATED

VPP, safety enhancements continue

In 2012, Horse Hollow III Wind Energy Center in Texas joined the ranks of Energy Resources’ plants that have earned the Voluntary Protection Program (VPP) Star Status Star Status from the U.S. Occupational Safety and Health Administration (OSHA).

Gray County in Kansas and New Mexico Wind Energy Centers also received recertification for their VPP status, along with the Lamar Energy Center in Texas.

In TH&S, safety initiatives included the rollout of the I-touch smart phone with applications that help employees do their jobs safely, such as heat stress determinations and safety observations.

Employees in the Nuclear Fleet continued to drive improvements in industrial safety, reduce human performance events and enhance a strong nuclear safety culture. The Fleet also focused on reducing most-frequent first aid events through communication, observation and coaching efforts.

Senior PGD Safety Specialist Kevin O’Donnell, middle, discusses tagging procedures with Senior Production Technicians Michael McDougal, front, and Bradley Kelley at the Lamar Energy Center in Texas.

Production Technician Johnny Pacheco operates the SEGS IX solar unit in California.

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The Horse Hollow III team celebrated VPP recognition in May 2012. The site was the 16th Energy Resources’ facility to earn this prestigious safety designation.

Seabrook Nuclear Training Supervisor Mark Leone tracked the movement of fuel from the reactor to the storage pool during the 2012 fall outage. Proper documentation is part of a safety-first approach in nuclear operations.

Wind Technician Tim Hall works at the 112.2-MW Gray County Wind Energy Center, which also earned its VPP recertification in 2012.

PGD Business Services Leader Mark Ellis stands at the Forney Energy Center. Forney received its VPP recertification in 2012.

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Trading Organization Responds to Challenges

PMI rebounded from a difficult year in 2011 to post very strong results in 2012. Market conditions continued to be challenging as abundant natural gas supply depressed prices and volatilities. But PMI’s best-in-class Customer Supply business, coupled with first-rate trading and risk management capabilities, led the way to a very successful year.

In 2012, PMI saw several opportunities to sell power to municipalities and other load-serving entities seeking to lock-in the benefit of current low prices. In some cases, PMI purchases power from our merchant assets to meet our own hedging objectives, but we can also manage much of this business in our trade book.

Transactions require support from multiple groups within PMI, from the originators who maintain customer relationships, to the structuring team that ensures deals are structured properly, to the traders who price and manage risk, to the operations team that ensures flows of power and fuel on a daily basis. In many cases, senior management is actively involved in negotiations.

Gas Trading is now fully integrated into PMI’s Juno Beach offices, and the company continues to grow its capabilities in that area. The organization is well positioned for success in 2013 and the years ahead.

Gas Infrastructure provides another growth opportunity

The Gas Infrastructure group is complementing growth in wind and solar energy with an attractive portfolio of upstream assets (producing oil and gas wells).

NextEra Energy is one of the largest consumers of natural gas in the U.S. power sector and already has a large presence in the gas sector. For Energy Resources, the economics of natural gas is critical to nearly every one of our businesses.

Energy Resources has gained valuable insight into costs, production and technology by being in the gas infrastructure business.

From left, Larry Wall, vice president, Gas Infrastructure and Development; Molly Boyd, executive director, Business Management; and TJ Tuscai, president, Gas Infrastructure, discuss Energy Resources’ drilling operations in 10 U.S. locations with more than 300 producing wells. The investments are in joint-venture partnerships with experienced operators.

TEAMS FOCUS ON GROWTH OPPORTUNITIES

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PMI employees in Juno Beach are part of the team that provides first-rate trading and risk management capabilities.

Senior Gas Portfolio Coordinator Jillian Kaiser schedules and monitors natural gas transportation, purchases and sales on pipeline systems for PMI.

Senior Vice President and Managing Director of Power Marketing Larry Silverstein, standing, discusses trading operations with Vice President of Power and Fuels Trading Jeff Palumbo.

Ruben Lorenzo and Rick Dargento, seated, both directors in PMI’s Mid-Marketing group, track daily market changes in order to provide customized power products.

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Quality program continues to improve efficiency, lower costs

With involvement from employees across Energy Resources and help from the science of Six Sigma, quality initiatives are improving processes and achieving greater efficiency. The potential cost savings for the company is in the millions of dollars.

More than 30 projects were completed in 2012, and the team of trained employees kept growing. Energy Resources has three master black belts, 18 black belts, 86 green belts and 10 yellow belts. Hundreds of other employees are also involved in quality projects, diagnosing the root causes of the issues and designing their own solutions to best meet their goals.

Gexa Energy prepares for future growth

In 2012, Gexa Energy, a subsidiary with retail operations in 13 states and the District of Columbia, began laying the foundation for rapid growth in the years ahead.

Based in Texas, Gexa Energy employees developed and launched a new growth strategy and added very strong capabilities to the team; achieved record residential customer growth in ERCOT in the fourth quarter 2012 through more sophisticated pricing and marketing tactics; and also had successful results in commercial sales in markets outside of ERCOT.

Point Beach, Nuclear Communications earn awards

Teamwork was behind award-winning efforts within the Nuclear Fleet. Point Beach and the Nuclear Communications team earned two of the nuclear industry’s prestigious Top Industry Practice (TIP) Awards at the Nuclear Energy Assembly, held in Charlotte, N.C., in May.

Point Beach’s award recognizes the site’s integrated approach to the power uprate project that was successfully completed in December 2011, which added approximately 170 megawatts of capacity at that site.

The Nuclear Communications team also created and implemented an innovative program to enhance working relationships with spokespersons from local and state government organizations, allowing the company to improve the reach of its community relations activities.

Energy Resources’ Quality and Process Improvement team works with other groups on Six Sigma projects.

Holly Shandera oversees Call Center operations for Gexa Energy, a subsidiary of Energy Resources based in Texas.

ORGANIZATIONS TAKE INITIATIVE TO ENHANCE PERFORMANCE

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The Generation Repair and Service facility allows Energy Resources to repair some of our wind turbine equipment. Here, GRS Technician Paul Hermansen removes a bearing on a Siemens 2.3-MW turbine for replacement.

Employees at WindLogics, our Minnesota weather and research company, helps Energy Resources make science-based decisions in many areas, including wind and solar development.

Energy Resources’ facilities take initiative to be good neighbors in communities. Tony Welsh, right, associate site leader for Peetz Table Wind Energy Center in Colorado, accepts the Business of the Year award.

From left, Bob Gilbertson, Mark Hansen, Jim Wilson and Steve Robitzski accept a Top Industry Practice Award on behalf of the Point Beach Nuclear Plant.

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Employees removed an old turbine rotor for replacement at the Marcus Hook Energy Center. The teamwork and effort involved in the project was extraordinary, including employees from Business Management, Integrated Supply Chain, PGD Technical Services, PGD Central Maintenance, the TH&S organization and the Marcus Hook site.

TEAMWORK MAKES THE DIFFERENCE WITHIN ENERGY RESOURCES

Team raises the performance bar at Marcus Hook Energy CenterWhile Energy Resources’ fossil plants achieved their best reliability on record in 2012, a cross-functional team took action to raise the bar on equipment performance.

“As part of our ongoing ‘Assets Better’ initiative, we decided to upgrade the combined-cycle GE combustion turbines at the 744-megawatt Marcus Hook Energy Center in Pennsylvania,” said Lane Witten, director, Business Management.

The benefits include improved heat rate and increased output while maintaining outstanding reliability and availability. In addition, the plant is expected to realize lower fuel costs and improved revenues.

One turbine replacement was completed in 2012; the hardware replacement for the second unit was completed in November with installation of upgraded software scheduled for the spring of 2013. The last of the three turbines will be changed out in 2015.Duane Arnold Radwaste Operator Dennis Kremer and his colleagues

teamed with more than 1,000 temporary workers in support of the plant’s fall 2012 refueling outage.

Employees worked together to respond after Hurricane Sandy. Production Technician Joe Dzielak at the Sayreville Energy Center in New Jersey adapted a tool to turn the turbine shafts when the plant lost off-site power.

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From left, Jessica Wang, Jim Nealy, Bill Key, Marianne Deane and Winton Kelly are part of the Asset Operations and Trading team that will be managing the operations aspects of the Cimarron wind contract in Kansas.

Nuclear Fleet supports Point Beach inspectionBeing ready for the many highly detailed and rigorous inspections by the Nuclear Regulatory Commission (NRC), the federal agency that oversees all U.S. nuclear power plants, is an area that also required teamwork by the Nuclear Fleet in 2012.

“In early 2013, Point Beach Nuclear Plant is scheduled for a special emergency preparedness inspection,” said Peter Polfleit, fleet emergency preparedness specialist. “In order to ensure that we are really challenging ourselves and looking at the issues from all possible angles, we enlisted the help of technical experts from across the Fleet.”

The team identified strengths and areas needing additional improvement before the NRC inspection that is expected to take place in March 2013.

“Point Beach is addressing the mock inspection findings,” Peter said. “This is just one example of how the plants support each other with the overall goal of excellence throughout the Fleet.”

From left, David Currier (Seabrook), Mitch Epstein (FPL Turkey Point), Peter Polfleit (Juno Beach) and Paul Czaya (FPL Turkey Point) were the mock inspection team that helped prepare Point Beach for an NRC inspection.

Cimarron contract required group effort In December 2012, Energy Resources acquired the 165.6-MW Cimarron Wind Energy Center in Kansas. All of the power from the project is being sold to the Tennessee Valley Authority under a 20-year power purchase agreement (PPA).

The contract was unique, and the Energy Resources’ team had to determine how to meet its requirements.

“Unlike most of our wind PPAs that deliver power to the off-taker at the wind farm location, this contract requires the project to deliver power from Kansas, across several regions, to Tennessee,” said Jessica Wang, executive director of Asset Trading and Operations.

“This complexity required the teamwork and collaboration of many groups, including Development, Project Valuation, PMI, Transmission and Business Management to determine a fair purchase price and operational procedures for the project.”

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TEAMWORK MAKES THE DIFFERENCE WITHIN ENERGY RESOURCES

Employees pulled together at North Sky RiverThere can be many challenges in building a wind farm, and it takes a team to overcome them, as was the case at the North Sky River project in California.

“From topography to transmission, the North Sky River project was the most complex wind endeavor that Energy Resources had ever undertaken,” said John DiDonato, vice president of Wind Development.

“This project was unique in the sense of needing ‘all hands on deck’ for the entire year of 2012 in order to plan and construct this wind farm in time to receive the federal investment tax credit for wind.”

For example, the terrain had steep mountains and valleys, which made building roads to haul equipment to turbine locations

especially difficult. Millions of cubic yards of fill had to be moved in order to accomplish this task.

Another challenge was the number of interfaces with other organizations, including the California power grid operator; the federal agency on whose land Energy Resources had to build a road; the company building the permanent interconnecting transmission line to the site; and the customer for power from North Sky River.

While the obstacles were great, the team overcame them one by one to successfully complete the project and receive the tax credit.

“This project showed undoubtedly how great our company can be when we work as a team,” John said.

From left, Lin Tun, director of Transmission Business Management; Anthony Pedroni, director of Development, Upper Midwest;, Kerry Hattevik, regional director for West Government Affairs; and Mark Thompson, lead professional for Construction, worked in 2012 on the North Sky River Wind Project in California, the most complex wind development project ever accomplished by Energy Resources. The entire team included representatives from Land Services, Project Valuation, Business Management, Interconnection/Transmission, Engineering & Construction, PGD/Operations, PMI, Tax and Accounting, Environmental Services, Special Valuations (Wind Analytics) and WindLogics.

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Can-do approach produces win-win for our business Ingenuity, experience and a can-do attitude led employees to identify opportunities where Energy Resources could produce additional revenue, lower costs or improve efficiency.

“For the first time, the Altamont and Rigging Teams, the Generation Repair and Service (GRS) West Shop Technicians and Business Management Teams worked together to rebuild and sell 12 older style, decommissioned turbines, rather than disposing of them,” said Tony Conti, regional general manager, Central Region.

The transaction allowed maximum recovery of the decommissioned turbines and resulted in additional revenue for Energy Resources.

Another group of employees, including the High Winds team, the GRS Iowa Shop technicians and the Major Component Task Force

members, developed a method for replacing intermediate gears on a wind turbine gearbox – on-site and up tower. Historically, this kind of component replacement would have been performed off-site in our GRS facility.

“The team successfully developed a shop ‘mock up,’ procedure preparation and a field/trial demonstration – another first for the company,” Tony said.

“With this new process, other sites with this type of gearbox will be able to do the on-site and up tower replacements at a significantly reduced material, crane and freight cost.”

GRS Technician Jason West is rebuilding wind blade shafts for turbines at the GRS West facility in California. Twelve turbines were successfully refurbished in 2012 to like-new condition and sold to a third party.

This is a distribution being made only to employees and should not be communicated to anyone outside the company.

NextEra Energy Resources, LLC

700 Universe Boulevard

Juno Beach, Florida 33408

For more information, go to:

www.NextEraEnergy.com

www.NextEraEnergyResources.com