In this list
Electric Power

NextEra Energy sees opportunities in Biden infrastructure, clean energy plans

Commodities | Energy | Electric Power | Renewables | Natural Gas

Hydrogen: Beyond the Hype

Energy | Electric Power

Platts Forward Curves – Gas and Power

Natural Gas | Energy | Electric Power | Renewables | Oil | Coal | Emissions | Energy Transition

COP26

Metals | Energy | Coal | Natural Gas | Non-Ferrous | Steel | Emissions

Chinese magnesium prices breach crucial level on stock uncertainty

Metals | Non-Ferrous | Steel

Steel, aluminum demand to see boost on passage of long-awaited US infrastructure package

NextEra Energy sees opportunities in Biden infrastructure, clean energy plans

Highlights

Net effect of tax plan less certain

Quarterly earnings up sharply on year

Houston — The Biden administration's infrastructure and clean energy plans offer significant opportunities for NextEra Energy, but it is too early to determine how Biden's tax plans might affect the company, Chairman and CEO Jim Robo said April 21.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

    "There's obviously a lot in [Biden's] plan that's very positive from a renewable standpoint," Robo said in a first-quarter earnings call. "We are excited to work with the administration on the plan that I think is really going to accelerate the decarbonization of the US economy ... over the next several years."

    NextEra Energy already has a large renewable portfolio. Its NextEra Energy Resources merchant subsidiary has 15.6 GW of wind generation scattered across the US, primarily in Texas, the Midwest and the West. It also has about 3 GW of solar scattered mainly through the central and Southwest US.

    NextEra Energy Partners unit has 4.7 GW, primarily in the Midwest, West and the South, and it recently announced plans to acquire 391 MW of wind generation, mainly on the West Coast. NextEra Energy Partners also has 1.3 GW of solar, mainly in the West.

    NextEra Energy's Florida Power & Light subsidiary has about 2.6 GW of solar, which the company said is more than any other utility in the country.

    According to a presentation April 21 by a Husch Blackwell attorney who monitors federal policy issues, President Joe Biden's infrastructure plan includes the following:

    • In effect, a national renewable portfolio standard with a goal of net-zero carbon dioxide emissions by 2035
    • 10-year extension and phase down of renewable power investment and production tax credits
    • Installation of 500,000 electric vehicle charging stations by 2030
    • Tax credits for new transmission
    • $100 billion for new transmission
    • Spending more on clean energy development, including green hydrogen and carbon capture

    Tax plan uncertainty

    Biden's Made In America Tax Plan would increase the corporate tax rate from 21% to 28%, which Robo conceded would be a "headwind."

    "On the tax front, I think, obviously, that there are a lot of puts and takes with taxes, particularly in a company that has both utility assets as well as renewable assets, and we're working through it," Robo said, adding that he is "not particularly worried" about the increased corporate tax rate "in the context of all the other things that would be positive for our company if the infrastructure bill gets passed."

    Robo acknowledged that the narrow Democratic majority in both houses implies that "none of this is going to be easy to get done."

    Quarterly earnings

    NextEra Energy reported first-quarter net income of $1.666 billion, or 84 cents a share, compared with $421 million, or 21 cents a share for Q1 2020, on a GAAP basis. On an adjusted basis, NextEra Energy reported Q1 earnings of $1.33 billion, or 67 cents a share, compared with $1.17 billion, or 59 cents a share in Q1 2020.

    Adjustments exclude the effects of non-qualifying hedges, NextEra Energy Partners limited partnership net investment gains, the gain on disposal of a business, and changes on unrealized gains and losses on equity securities.

    The adjusted earnings growth reflected strong performance by FPL, which earned $720 million, or 37 cents/share, in the first quarter, compared with $642 million or 33 cents a share for Q1 2020. This growth was mainly driven by a 10.8% increase in regulatory capital deployed in the region, and the average number of customers increased by about 71,400 compared with Q1 2020, the company said.

    NextEra Energy Resources reported a Q1 2021 contribution to net income of $491 million or 25 cents/share, compared with $318 million, or 16 cents/share for Q1 2020.

    NextEra Energy's outlook remained unchanged, with adjusted earnings per share ranging from $2.40 to $2.54 in 2021, raising to $2.55 to $2.75 for 2022 and $2.77 to $2.97 in 2023.

    NextEra Energy wind portfolio performance
    NextEra Energy Resources wind production index*
    Location
    GW for Q1-Q3 2020
    Jan-20
    Feb-20
    Mar-20
    Q1 2020
    Q2 2020
    Q3 2020
    GW for Q4 2020
    Q4 2020
    GW for Q1 2021
    Jan-21
    Feb-21
    Mar-21
    Q1 2021
    Midwest
    3.844
    86%
    99%
    94%
    93%
    97%
    99%
    4.004
    102%
    4.406
    82%
    85%
    109%
    91%
    West
    3.285
    114%
    104%
    91%
    103%
    100%
    104%
    3.285
    102%
    3.285
    100%
    97%
    103%
    100%
    Texas
    4.572
    96%
    102%
    86%
    95%
    98%
    98%
    4.581
    99%
    4.758
    93%
    90%
    118%
    101%
    Other South
    2.646
    97%
    104%
    84%
    95%
    105%
    90%
    2.646
    101%
    2.646
    93%
    92%
    112%
    100%
    Canada
    0.524
    87%
    103%
    102%
    97%
    98%
    96%
    0.524
    101%
    0.524
    71%
    94%
    123%
    95%
    Total
    14.871
    97%
    102%
    89%
    96%
    99%
    98%
    15.039
    102%
    15.617
    90%
    90%
    111%
    97%
    NextEra Energy Partners wind production index*
    Location
    GW for all 2020
    Jan-20
    Feb-20
    Mar-20
    Q1 2020
    Q2 2020
    Q3 2020
    Q4 2020
    GW for Q1 2021
    Jan-21
    Feb-21
    Mar-21
    Q1 2021
    Midwest
    1.213
    86%
    98%
    95%
    93%
    98%
    100%
    104%
    1.213
    80%
    91%
    106%
    92%
    West
    1.104
    121%
    109%
    89%
    106%
    98%
    103%
    103%
    1.104
    96%
    96%
    100%
    98%
    Texas
    0.700
    107%
    110%
    104%
    107%
    93%
    94%
    108%
    0.780
    97%
    93%
    116%
    103%
    Other South
    1.559
    98%
    105%
    85%
    95%
    105%
    91%
    102%
    1.559
    94%
    97%
    111%
    101%
    Total
    4.575
    100%
    105%
    91%
    98%
    100%
    96%
    103%
    4.655
    91%
    94%
    108%
    98%
    *Wind production index represents a measure of actual wind speeds relative to long-term average wind speeds.
    Source: NextEra Energy