compound annual rate of 7 percent for the 10 years ended  Dec. 31, 2011, compared to a 4.9 percent rate for the S&P  500 Electric Utilities Index. Over the 10 years ended Dec.  31, 2011, our total shareholder return was 209 percent,  compared to 129 percent for the S&P 500 Electric Utilities  Index and 33 percent for the S&P 500 Index. In February  2012, we announced an increase in our quarterly dividend  to 60 cents per share, which is consistent with the current  expectation of the Board of Directors to target a payout  ratio, expressed relative to adjusted earnings, of about  55 percent in 2014. We remain focused on building long- term value for our shareholders by investing in energy  technologies that are designed to provide affordable and  reliable power for our customers for years to come. Operationally, FPL’s fossil fuel fleet set a new record for its  fuel efficiency in 2011, bringing its systemwide heat rate  − a key measure of power plant efficiency  −  down to 7,803  British thermal units (BTU) per kilowatt-hour. The average  fossil heat rate for the electric utility industry was 10,045  BTUs per kilowatt-hour for 2010, the most recent year for  which data is available. Since 2001, FPL’s fossil heat rate  has improved by 19 percent, and greater fuel efficiency has  saved our customers more than $5.5 billion in fuel costs,  including more than $650 million in 2011 alone. As fuel  costs for our customers have averaged nearly $5 billion per  year over the five years ended in 2011, FPL’s fuel efficiency  since 2001 has saved our customers the equivalent of  approximately one year’s supply of fuel.  FPL also had a very good year in keeping operations and  maintenance (O&M) costs low, and reliability high. FPL’s  O&M expenses for all of 2011 were 1.64 cents per retail  kilowatt-hour sales, compared with the latest available  industry average of 2.28 cents per retail kilowatt-hour  sales. FPL’s service reliability, as measured by the System  Average Interruption Duration Index (SAIDI), was the best  among Florida investor-owned utilities during the five years  ended in 2011. We are proud of the affordable and reliable electric power  FPL delivered to our 4.6 million customers in 2011, and  we believe our investments will continue to benefit our  customers going forward. Through 2013, we expect to  invest an average of approximately $3 billion per year in  generation and infrastructure projects that benefit our  customers, including new, clean, efficient power generation.  In part to help pay for these investments and to maintain  our superior performance for customers, FPL has filed  with the Florida Public Service Commission a request for  an increase, currently estimated at $6.97 per month, or  about 23 cents per day, on the base portion of a typical  residential bill beginning in 2013. We know there is never  a good time to ask for a rate increase. Yet because of  projected fuel savings resulting from investments in more  efficient power generation, as well as lower fuel prices and  For the full year 2011, FPL reported net income of $1.07  billion, or $2.55 per share, compared with $945 million, or  $2.29 per share, in 2010. The main drivers of this earnings  growth were our investments in clean and efficient power  generation. These investments provide significant benefits  for our customers, who have electric bills that are the  lowest in Florida and 25 percent lower than the national  average. Our customers enjoy reliability that ranks as the  best in the state among investor-owned utilities as well  as award-winning customer service. FPL customers also  benefit from an emissions profile that is among the best in  the industry. During 2011, FPL deployed more than $3 billion in capital on  projects providing significant customer benefits. In addition  to Cape Canaveral, other major capital investments also  moved forward last year. Unit 3 at our West County Energy  Center in Palm Beach County came into service on time  and under budget. Local officials and residents from Riviera  Beach, also in Palm Beach County, enjoyed witnessing  firsthand the demolition of the old Riviera plant, paving the  way for another modernization. We began to pursue a third  modernization project, Port Everglades in Broward County,  which is also expected to save customers hundreds of  millions of dollars over and above the cost of the plant. Florida Power & Light Company ANNUAL REPORT AR-2