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

2 Top 10 U.S. Competitive Generators NextEra Energy Resources is the 5 th largest competitive generator in the U.S. today MW 000s (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 Resources (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 Wind Hydro Natural Gas/Oil Solar Nuclear Other 1,961 MW 3,766 MW 7,247 MW 5,174 MW As of December 31, 2009

4 Other 56 MW NextEra Energy Resources Portfolio by Fuel Type (1) NextEra Energy Resources’ portfolio consists of primarily low carbon generation capacity Nuclear 2,552 MW Natural Gas 6,693 MW Wind 7,544 MW Oil 796 MW Hydro 359 MW Solar 148 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 CO 2 Emission Rate (2) Lbs / MWh

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

6 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

7 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

8 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)

9 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