Summary

• NextEra Energy, Inc. is a leading clean energy company.
• NEE has two principal businesses, FPL and NEER.
• Recently NextEra Energy Transmission Southwest awarded the Crossroads – Hobbs – Roadrunner

NextEra Energy, Inc. (NYSE: NEE, LSE: 0K80) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is America’s largest electric utility that sells more power than any other utility, providing clean, affordable, reliable electricity to approximately 5.8 million customer accounts, or more than 12 million people across Florida.¹

Recent Developments

NextEra Energy Transmission Southwest awarded the Crossroads – Hobbs – Roadrunner 345-kV Competitive Upgrade project by SPP²

Aug. 29, 2023; NextEra Energy Transmission Southwest, LLC, a subsidiary of NextEra Energy Transmission, LLC, was awarded the Crossroads – Hobbs – Roadrunner 345-kilovolt (kV) Competitive Upgrade project in New Mexico by the Southwest Power Pool (SPP). This is the fifth and largest competitive transmission project that the SPP has released to date and the third competitive project that NextEra Energy Transmission Southwest has been awarded by SPP.

The project emerged from SPP's integrated transmission planning process during which SPP assesses the future transmission needs of its grid to develop transmission solutions that provide reliable and economic delivery of energy and maximize the benefits to customers. The Crossroads – Hobbs – Roadrunner 345-kV Competitive Upgrade project will deliver lower-cost generation to the region and unlock significant customer benefits by building a 345-kV double-circuit transmission line interconnecting the Crossroads, Hobbs and Roadrunner substations.

Financial Highlights

Second-Quarter 2023 Results³

July 25, 2023; NextEra Energy, Inc. (NYSE: NEE) today reported 2023 second-quarter net income attributable to NextEra Energy on a GAAP basis of $2,795 million, or $1.38 per share, compared to net income attributable to NextEra Energy of $1,380 million, or $0.70 per share, for the second quarter of 2022. On an adjusted basis, NextEra Energy's 2023 second-quarter earnings were $1,777 million, or $0.88 per share, compared to $1,593 million, or $0.81 per share, in the second quarter of 2022.

FPL

FPL reported second-quarter 2023 net income of $1,152 million, or $0.57 per share, compared to $989 million, or $0.50 per share, for the prior-year comparable quarter. As America's largest electric utility, FPL's growth in the second quarter of 2023 was principally driven by continued investment in the business. FPL's capital expenditures were approximately $2.5 billion for the second quarter of 2023 and full-year capital investments are now expected to be between $8.5 billion and $9.5 billion. Regulatory capital employed increased by approximately 12.1% over the same quarter last year. FPL's average number of customers increased by more than 66,000 from the prior-year comparable quarter.

During the second quarter, FPL successfully executed on its strategic initiatives, placing in service approximately 225 megawatts (MW) of cost-effective solar, bringing the total 2023 solar additions to nearly 1,200 MW. Longer term, FPL continues to expect capital investments of between $32 billion to $34 billion from 2022 through 2025, with approximately $10 billion invested in new solar generation and approximately $14 billion to $16 billion invested in transmission and distribution infrastructure. By executing on smart capital investments and running the business efficiently, FPL is able to maintain its best-in-class customer value proposition of low bills, high reliability and outstanding customer service.

NextEra Energy Resources

NextEra Energy Resources reported second-quarter 2023 net income attributable to NextEra Energy on a GAAP basis of $1,462 million, or $0.72 per share, compared to $133 million, or $0.07 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings for the second quarter of 2023 were $781 million, or $0.39 per share, compared to $683 million, or $0.35 per share, for the second quarter of 2022.

NextEra Energy Resources delivered another solid quarter of renewables and storage origination, adding approximately 1,665 MW of new renewables and storage to its backlog since the release of the firstquarter 2023 financial results in April. NextEra Energy Resources added approximately 1,215 MW of solar, 150 MW of wind and 300 MW of storage. NextEra Energy Resources' backlog stands at roughly 20 gigawatts (GW) after adding almost 1.7 GW and placing over 1.8 GW into service.

Corporate and Other

In the second quarter of 2023 on a GAAP basis, Corporate and Other results decreased $0.04 per share, compared to the prior-year quarter. On an adjusted basis, Corporate and Other results for the second quarter of 2023 decreased $0.04 per share, compared to the prior-year quarter.

Outlook

NextEra Energy's long-term financial expectations remain unchanged. For 2023 and 2024, NextEra Energy continues to expect adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively. For 2025 and 2026, NextEra Energy expects to grow 6% to 8%, off the 2024 adjusted earnings per share range. This translates to a range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026. NextEra Energy also continues to expect to grow its dividends per share at a roughly 10% rate per year through at least 2024, off a 2022 base.

Company Overview

NextEra Energy, Inc.  (NEE) is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy industry. NEE has two principal businesses, FPL and NEER. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S. FPL’s strategic focus is centered on investing in generation, transmission and distribution facilities to deliver on its value proposition of low customer bills, high reliability, outstanding customer service and clean energy for the benefit of its approximately 5.8 million customer accounts. NEER is the world's largest generator of renewable energy from the wind and sun, as well as a world leader in battery storage. NEER’s strategic focus is centered on the development, construction and operation of long-term contracted assets throughout the U.S. and Canada, primarily consisting of clean energy assets such as renewable generation facilities and battery storage projects, and electric transmission facilities.

In January 2019, NEE acquired Gulf Power Company, a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in northwest Florida. On January 1, 2021, FPL and Gulf Power Company merged, with FPL as the surviving entity. However, during 2021, FPL continued to be regulated as two separate ratemaking entities in the former service areas of FPL and Gulf Power Company. Effective January 1, 2022, FPL became regulated as one electric ratemaking entity with new unified rates and tariffs.

FPL

FPL is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S. At December 31, 2022, FPL had approximately 32,100 MW of net generating capacity, approximately 88,000 circuit miles of transmission and distribution lines and 871 substations. FPL provides service to its electric customers through an integrated transmission and distribution system that links its generation facilities to its customers. FPL also owns a retail gas business, which serves approximately 119,000 residential and commercial natural gas customers in eight counties throughout southern Florida with 3,795 miles of natural gas distribution pipelines. FPL serves more than 12 million people through approximately 5.8 million customer accounts.

At December 31, 2022, FPL's resources for serving load consisted of approximately 33,195 MW of net generating capacity, of which 32,066 MW were from FPL-owned facilities and 1,129 MW were available through PPAs. FPL owned and operated 44 units with generating capacity of 24,236 MW that primarily use natural gas and 50 solar generation facilities with generating capacity totaling 3,611 MW. In addition, FPL owned, or had undivided interests in, and operated 4 nuclear units with net generating capacity totaling 3,502 MW and had joint ownership interests in 3 coal units located in Mississippi and Georgia it did not operate with net generating capacity totaling 717 MW. FPL intends to retire its share of 2 of these coal units in 2024 and together with a joint owner retire the remaining unit in 2028.

NEER

NEER, comprised of NEE's competitive energy and rate-regulated transmission businesses, is a diversified clean energy business with a strategy that emphasizes the development, construction and operation of long-term contracted assets with a focus on clean energy. NEE reports NextEra Energy Resources and NEET, a rate-regulated transmission business, on a combined basis for segment reporting purposes, and the combined segment is referred to as NEER. The NEER segment currently owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the U.S. and Canada and also includes assets and investments in other businesses with a clean energy focus, such as battery storage and renewable fuels. NEER, with approximately 27,400 MW of total net generating capacity at December 31, 2022, is one of the largest wholesale generators of electric power in the U.S., including approximately 26,890 MW of net generating capacity across 40 states and 520 MW of net generating capacity in 4 Canadian provinces. At December 31, 2022, NEER operates facilities, in which it has partial or full ownership interests, with a total generating capacity of approximately 33,800 MW.

Company History

The company was started as Florida Power & Light Company.⁴

• 1925 - Florida Power & Light Company was created on Dec. 28, 1925. In the beginning, FPL owned power plants, water facilities, gas plants, ice companies, laundry services and even an ice cream business. In its first year, the company served approximately 76,000 customers in 58 communities and had a generating capacity of 70 MW.
• 1950 - FPL’s stock was listed on the New York Stock Exchange. Overnight, the company acquired about 14,000 stockholders.
• 1969 - FPL supported the NASA’s Apollo 11 mission by building the Cape Canaveral Plant and strengthening the poles and wires in the Kennedy Space Center.
• 1997 - FPL Energy was established. It would later be renamed NextEra Energy Resources.
• 1998 - The company’s first wind site, Vansycle Ridge Wind Farm, came online near Helix, Oregon.
• 2005 - FPL Group acquired Gexa Corporation, a retail electricity provider in Texas.
• 2009 - FPL Energy’s name was changed to NextEra Energy Resources.
• 2010- FPL Group changed its name to NextEra Energy
• 2012 - NextEra Energy Resources, together with PG&E, opened the 78.2-MW repowered Vasco Wind Energy Center near San Francisco, California.
• 2013 - NextEra Energy completed the largest multi-state nuclear uprate project in U.S. history. The multi-billion-dollar expansion at St. Lucie, Turkey Point and Point Beach involved six separate nuclear units.
• 2014 - The company launched NextEra Energy Partners, a growth-oriented limited partnership. At the time, it was the most successful IPO of its kind.
• 2017- The company is in the process of executing one of the largest solar expansions ever in the eastern U.S. with eight new solar energy centers that will begin providing clean, emissions-free energy to customers by early 2018.
• 2018 - NextEra Energy acquired Florida City Gas.

References

1. ^ https://www.investor.nexteraenergy.com/company-overview
2. ^ https://www.investor.nexteraenergy.com/news-and-events/news-releases/2023/8-29-2023
3. ^ https://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/reports-and-fillings/quarterly-earnings/2023/Q2/2023-0725%20NEEQ22023News%20Release%20Final.pdf
4. ^ https://www.nexteraenergy.com/company/history-timeline.html