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NextEra Energy plans base rate increase for 2026

EditorAhmed Abdulazez Abdulkadir
Published 31/12/2024, 05:56 am
NEE
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NextEra Energy Inc . (NYSE:NEE) and its subsidiary, Florida Power & Light Company (FPL), have announced their intention to initiate a base rate proceeding in early 2025. The announcement was made today to the Florida Public Service Commission (FPSC), outlining a plan to replace the current base rate agreement set in 2022.

These forward-looking statements are based on current expectations and are subject to a variety of risks and uncertainties. Factors that could affect future results include regulatory decisions, changes in tax laws, and the impact of new or revised laws and regulations related to environmental concerns and greenhouse gas emissions.

Analysts maintain a generally positive outlook, with a consensus target price suggesting potential upside, though 4 analysts have recently revised their earnings expectations downward. For comprehensive analysis and detailed insights, including the full Pro Research Report covering NEE's financial health, valuation metrics, and future prospects, visit InvestingPro.

Analysts maintain a generally positive outlook, with a consensus target price suggesting potential upside, though 4 analysts have recently revised their earnings expectations downward. For comprehensive analysis and detailed insights, including the full Pro Research Report covering NEE's financial health, valuation metrics, and future prospects, visit InvestingPro.

FPL aims to set an allowed regulatory return on common equity at a midpoint of 11.9 percent and to continue applying the equity ratio approved in prior base rate cases.

These forward-looking statements are based on current expectations and are subject to a variety of risks and uncertainties. Factors that could affect future results include regulatory decisions, changes in tax laws, and the impact of new or revised laws and regulations related to environmental concerns and greenhouse gas emissions.

The company's ability to recover costs and achieve a reasonable return on invested capital through regulatory mechanisms is subject to political, regulatory, operational, and economic considerations.

The actual results of NextEra Energy and FPL may differ materially from those expressed in the forward-looking statements due to these and other risks outlined in the SEC filings, including their annual report for the year ended December 31, 2023.

The information provided in this article is based on a press release statement and the latest Form 8-K filed with the SEC by NextEra Energy, Inc. and Florida Power & Light Company.

In other recent news, NextEra Energy has successfully raised $1.5 billion in an equity units sale led by J.P. Morgan Securities LLC, Mizuho (NYSE:MFG) Securities USA LLC, and Goldman Sachs (NYSE:GS) & Co. LLC. The equity units consist of a contract to purchase NextEra Energy common stock and a 5% interest in a Series O Debenture due November 1, 2029. The company reported a 10% year-over-year growth in earnings per share, and Goldman Sachs has reaffirmed its confidence in NextEra Energy, increasing its 12-month price target.

NextEra Energy also added 3 gigawatts to its backlog, now totaling 11 gigawatts, and announced framework agreements with two Fortune 50 customers, indicating potential projects reaching up to 10.5 gigawatts by 2030. These developments are recent and reflect the company's steady path to achieving its financial goals in the renewable energy sector.

However, it's important to note that the company also faced challenges such as significant impacts from Hurricanes Helene and Milton, and a decline in adjusted EBITDA for NextEra Energy Partners due to asset divestitures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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