Financial Policy

Organizational Chart

NextEra Energy (NEE) has two principal businesses, Florida Power & Light (FPL) and NextEra Energy Resources (NEER). FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S. NEER is the world's largest generator of renewable energy from the wind and sun. NEE conducts its operations principally through its two wholly owned subsidiaries, FPL and NEER, which also constitutes NEE's reportable segments for financial reporting. NextEra Energy Capital Holdings (NEECH), another wholly owned subsidiary of NEE, owns and provides funding for NEER's and NEE's operating subsidiaries, other than FPL. In January 2019, NEE acquired Gulf Power Company (Gulf Power), 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 merged, with FPL as the surviving entity. All of Gulf Power's assets and debts have been assumed by FPL. However, during 2021, FPL continued to be regulated as two separate ratemaking entities in the former service areas of FPL and Gulf Power. Effective January 1, 2022, FPL became regulated as one ratemaking entity with new unified rates and tariffs.    

NextEra Energy, Inc.

Issuer Rating:
A-/Baa1/A-

Corporate Guarantee of Debt

 

Florida Power & Light Company

Issuer Rating: A/A1/A

NextEra Energy Capital Holdings, Inc.

Issuer Rating: A-/Baa1/A-

NextEra Energy Resources, LLC

Not Rated

NextEra Energy Transmission, LLC

Not Rated

Long-Term Contracted Wind Generation Assets

Long-Term Contracted Solar Generation Assets

FERC Regulated Pipelines

Peripheral Businesses and Other Assets

NextEra Energy Transmission, LLC

Not Rated

Data as of December 31, 2024
Ratings for S&P/Moody’s/Fitch

Key Financing Principles

Our financing strategy is based on a set of key principles that are all premised on supporting our strong credit position, for which we strive to be among the strongest in the industry.

  • Maintain our current credit ratings that are supported by a strong balance sheet
  • Continue to invest in regulated and long-term contracted businesses that provide stable cash flows
  • Recycle capital while maintaining balanced growth
  • Ensure access to a diverse set of funding sources, instruments and markets, both geographically and across institutions
  • Maintain adequate liquidity to avoid constraining the optimization of investing activities, and maintain appropriate liquidity for daily operations and short-term financing needs
  • Build long-term relationships with financing partners
  • Look to lending partners for competitive financing alternatives and liability management solutions
  • Educate and expand our existing investor base
  • Maintain flexibility to take advantage of market opportunities

Business Overview

NEXTERA Energy

www.nexteraenergy.com

NextEra Energy (NEE) is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy industry. NEE, through its subsidiary NextEra Energy Resources (NEER) and its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun in the world. NEE, was incorporated in 1984 under the laws of Florida and conducts its operations principally through its two wholly owned subsidiaries, Florida Power & light (FPL), and NextEra Energy Resources (NEER). NextEra Energy Capital Holdings (NEECH), another wholly owned subsidiary of NEE, owns and provides funding for NEER’s and NEE’s operating subsidiaries, other than FPL. NEE seeks to create value in its two principal businesses by meeting its customers' needs more economically and more reliably than its competitors. Management seeks to grow each business in a manner consistent with the varying opportunities available to it; however, management believes that the diversification and balance represented by FPL and NEER is a valuable characteristic of the enterprise and recognizes that each business contributes to NEE's financial strength in different ways. FPL and NEER share a common platform with the objective of lowering costs and creating efficiencies for their businesses. NEE and its subsidiaries continue to develop and implement enterprise-wide initiatives focused on improving productivity, process effectiveness and quality.

NEE Credit Ratings Summary

  S&P Moody's Fitch
Corporate credit rating A- Baa1 A-
Outlook Stable Stable Stable
   

Florida Power & Light Company

www.fpl.com

FPL was incorporated under the laws of Florida in 1925 and 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. based on retail MWh sales. In January 2019, NEE acquired Gulf Power Company (Gulf Power), 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 merged, with FPL as the surviving entity. All of Gulf Power's assets and debts have been assumed by FPL. However, during 2021, FPL continued to be regulated as two separate ratemaking entities in the former service areas of FPL and Gulf Power. Effective January 1, 2022, FPL became regulated as one ratemaking entity with new unified rates and tariffs. At December 31, 2023, FPL had approximately 33,276 MW of net generating capacity, approximately 90,000 circuit miles of transmission and distribution lines and 883 substations. FPL provides service to its electric customers through an integrated transmission and distribution system that links its generation facilities to its customers. FPL serves more than twelve million people through approximately 5.9 million customer accounts.

FPL maintains a heightened focus on rates and reliability for customers. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from cost savings initiatives. A common benchmark used in the electric power industry for comparing rates across companies is the price of 1,000 kWh of consumption per month for a residential customer. FPL segment's 2023 average bill for 1,000 kWh of monthly residential usage was well below both the average of reporting electric utilities within Florida and the July 2023 national average (the latest date for which this data is available).

FPL Credit Ratings Summary

  S&P Moody's Fitch
Corporate credit rating A A1 A
First mortgage bonds A+ Aa2 AA-
Senior unsecured A A1 A+
Tax-exempt bonds(1) A-1 VMIG-1/P-1 F1
Commercial paper A-1 P-1 F1
Outlook Stable Stable Stable
 

1) Although FPL’s outstanding tax-exempt bonds have long-dated maturities, the corresponding interest rates are variable and generally reset on a daily or weekly basis. As such, FPL’s short-term rating is applicable for these tax-exempt bonds. At FPL's election, a portion or all of the bonds may be adjusted to a long-term interest rate, at which time FPL’s long-term rating would be applicable.

 


For a complete listing of FPL’s debt issuances, click here


FPL Statistics

  • FPL Key Statistics 6.0 million customer accounts
    as of Dec. 31, 2024
  • FPL Key StatisticsEnergy sales of 
    142 billion kWhs YTD
    as of Dec. 31, 2024
       
  • FPL Key StatisticsAverage YTD price of
          11.83 cents/kWh
    as of Dec. 31, 2024(1)
  • FPL Key Statistics2,232 cooling degree-days and 291 heating degree-days YTD
    as of Dec. 31, 2024(2)

1) Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses

2) Cooling degree equivalent days use a 72 degree base temperature and heating degree equivalent days use a 66 degree base temperature


FPL Weather Index


 

FPL’s 2021 Base Rate Case Settlement

  • Unifies the rates and tariffs of FPL and Gulf Power
  • New rates are effective January 1, 2022 through at least December 31, 2025
  • Allowed regulatory ROE midpoint of 10.6% with a range of 9.7% to 11.7%
  • Flexibility to amortize up to $1.45 billion of reserve amount (1)
  • Supports the development of 16 million solar panels across more than 50 new sites and the green hydrogen pilot project in Okeechobee County

(1) Limited to the amortization of $200 MM of reserve during the first year of the 2021 rate agreement


For information on FPL’s rate structure, click here

NextEra Energy Capital Holdings

NextEra Energy Capital Holdings (NEECH) owns and provides funding for NextEra Energy Resources’ (NEER) and NextEra Energy’s operating subsidiaries, other than its Florida-based regulated utilities and subsidiaries. NEECH's business activities are primarily conducted through NEER. The financial results and operating performance of the Company’s regulated electric transmission business, NextEra Energy Transmission (NEET), are consolidated with those of NEER for financial reporting purposes, although NEET is directly owned by NEECH and an affiliate of NEER’s. Until recently, NEET conducted its operations principally through two wholly-owned subsidiaries, Lone Star Transmission (LST), a rate-regulated transmission service provider in Texas, and New Hampshire Transmission (NHT), a rate-regulated transmission owner in New Hampshire. However, on July 16, 2019, NEET acquired Trans Bay Cable, which owns and operates a 53-mile, high-voltage direct current underwater transmission cable system in California extending from Pittsburg to San Francisco, with utility rates set by the Federal Energy Regulatory Commission (FERC) and revenues paid by the California Independent System Operator (CAISO). Furthermore, on March 31, 2021, a wholly owned subsidiary of NEET acquired GridLiance Holdco, LP and GridLiance GP, LLC (GridLiance).  GridLiance owns and operates three FERC-regulated transmission utilities with approximately 700 miles of high-voltage transmission lines across six states, five in the Midwest and Nevada.

NEECH Credit Ratings Summary

  S&P Moody's Fitch
Corporate credit rating A- Baa1 A-
Debentures BBB+ Baa1 A-
Junior subordinated debentures (hybrids) BBB Baa2 BBB
Commercial paper A-2 P-2 F2
Outlook Stable Stable Stable
 

 

For a complete listing of NEECH’s debt issuances click here

NextEra Energy
Resources

www.nexteraenergyresources.com

NextEra Energy Resources (NEER) 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 renewable projects. The NEER segment currently owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets primarily in the U.S. and Canada. NEER, with approximately 30,600 MW of total net generating capacity at December 31, 2023, is one of the largest wholesale generators of electric power in the U.S., including approximately 30,080 MW of net generating capacity across 41 states and 520 MW of net generating capacity in 4 Canadian provinces. At December 31, 2023, NEER operates facilities, in which it has ownership interests, with a total generating capacity of 37,700 MW. NEER produces the majority of its electricity from clean and renewable sources as described more fully below. In addition, NEER develops and constructs battery storage projects, which when combined with its renewable projects, serve to enhance its ability to meet customer needs for a nearly firm generation source. NEER is the world's largest generator of renewable energy from the wind and sun based on 2023 MWh produced on a net generation basis, as well as a world leader in battery storage. NEER also owns, develops, constructs and operates rate-regulated transmission facilities in North America. At December 31, 2023, NEER's rate-regulated transmission facilities and the transmission lines that connect its electric generation facilities to the electric grid are comprised of approximately 330 substations and 3,585 circuit miles of transmission lines.

For a complete listing of NEER’s debt issuances, click here

For information on NEER's portfolio, click here