NextEra, FPL post higher profits
Improving economy, hot summer boost FPL accounts, sales figures.
JUNO BEACH — Juno Beachbased NextEra Energy reported Wednesday that its third-quarter adjusted earnings rose 3 percent to $730 million, or $1.60 per share, compared with $688 million, or $1.55 per share, in the third quarter of 2014.
Wednesday’s earnings report fell just below what analysts had forecast — $1.65 a share. However, revenue increased to $4.95 billion for the quarter from $4.65 billion a year ago, above the $4.83 billion analysts had expected.
NextEra Energy’s principal rate-regulated electric utility subsidiary, Florida Power & Light, reported third-quarter earnings of $489 million, or $1.07 per share, compared with $462 million, or $1.05 per share, for the prior-year quarter.
As Florida’s economy improves, FPL reached a record number of customer accounts, pegged at 4.786 million as of Sept. 30, said John Ketchum, NextEra’s senior vice president of finance. That compares with 4.719 million a year ago. The average number of inactive accounts decreased by 16 percent.
Electricity sales increased 2.6 percent compared with the same quarter last year. FPL estimates 1.4 percent of the growth was related to a hotter-than-normal summer.
Underlying electricity demand is down slightly because of energy efficien- cy and conservation programs. However, FPL President and CEO Eric Silagy said FPL feels good about its prospects going forward because of the company’s overall strong performance and the state’s growth.
The current customer base rates expire at the end of 2016, and FPL plans to file a new rate case early next year.
FPL plans to invest $3 billion to $4 billion on upgrading transmission and distribution infrastructure through 2018, and $900 million of that will be deployed this year, Ketchum said.
The new Port Everglades combined-cycle natural gasfired plant in Hollywood is projected to come online in mid2016. FPL also has asked the Florida Public Service Commission to approve the need for a similar new power plant in Okeechobee County.
The $1.2 billion plant is expected to be in service by 2019.
In addition, FPL has three new solar projects of 74 megawatts each. The solar facilities are slated to be completed in 2016 and will triple FPL’s solar capacity and add to its overall fuel diversity, Ketchum said.
This week the U.S. Environmental Protection Agency filed a negative report with the Federal Energy Regulatory Commission about the proposed 515-mile Sabal Trail and Florida Southeast Connections natural gas pipeline. The EPA recommended that a different route be selected to avoid environmentally sensitive lands such as wetlands, sinkhole-prone areas and adverse impacts on the Floridan Aquifer, which supplies water to millions of people in Florida and Georgia.
Sabal Trail is a joint venture of Spectra Energy, NextEra Energy and Duke Energy. The pipeline will serve FPL’s South Florida plants.
On Wednesday, NextEra executives made no mention of the EPA’s recommendations. Ketchum said the venture expects to receive FERC approval in early 2016 to enable the pipeline to be in operation by mid-2017.