Number of FPL customer accounts (millions of accounts)

Number of people served by FPL (millions of people)

Value at Risk for Trading (FPL) (USD millions)

Value at Risk for Trading (NEER) (USD millions)

Value at Risk for Trading (NEE) (USD millions)

Value at Risk for Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses (FPL) (USD millions)

Value at Risk for Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses (NEER) (USD millions)

Value at Risk for Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses (NEE) (USD millions)

Value at Risk Total (FPL) (USD millions)

Value at Risk Total (NEER) (USD millions)

Value at Risk Total (NEE) (USD millions)

efb36588744cb2b5b8b48bc059c364d4f286fce7c82db4444bd7764aae493a13

Current Assets (USD, millions)

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Inventory (USD, millions)

Non-Current Assets (USD, millions)

Property, Plant, and Equipment (PP&E) (USD, millions)

Goodwill (USD, millions)

Intangible Assets (USD, millions)

Current Liabilities (USD, millions)

Accounts Payable (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Non-Current Liabilities (USD, millions)

Long-term Debt (USD, millions)

Lease Liabilities (USD, millions)

Deferred Tax Liabilities (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

aa51edcc51c18572a99629e2a4747c27c5863ec4ea998e50e5ce0b736845fcc1

Florida Power & Light

NextEra Energy Resources

Corporate and Other

Total Revenue

b6336b2651564484a1fc1a373b2bece8b2a42e07f813910426ca35a00adfee4e

NextEra Energy, Inc. (NEE) is a leading clean energy company based in Juno Beach, Florida, primarily operating through Florida Power & Light Company (FPL) and NextEra Energy Resources, LLC (NEER) **[0000753308-24-000055_neeq32024exhibit99.htm:3]**. FPL is the largest electric utility in the United States, delivering clean, affordable, and reliable electricity to approximately 5.9 million customer accounts in Florida, serving over 12 million people **[0000753308-24-000010_exhibit99btoneedated02x27x.htm:3]**. NEER is recognized as the world's largest generator of renewable energy from wind and solar sources and is a leader in battery storage **[0000753308-24-000010_exhibit99atoneedated02x27x.htm:3]**. The company focuses on providing clean energy solutions and operates both rate-regulated and competitive energy businesses **[0000753308-24-000057_nee-20240930.htm:62]** **[0001104659-24-041966_tm247418-2_def14a.htm:4]**.

1. **Florida Power & Light Company (FPL)** - Provides clean, affordable, and reliable electricity to millions of customers in Florida, operating as a rate-regulated utility business.
2. **NextEra Energy Resources, LLC (NEER)** - Generates renewable energy from wind and solar sources and leads in battery storage, operating competitive energy and rate-regulated transmission businesses.
3. **Corporate and Other** - Includes various corporate-level activities and other business operations contributing to the overall revenue.

5d6142619fa0825e7551738de31cba35274d297ae40c30f40b4160a443569a24

1. Given the challenges you mentioned in addressing the remaining convertible equity portfolio financings due in 2027 and beyond  **[NEE_3370793_4]** **[NEE_3370793_5]** **[NEE_3370793_9]** , could you provide more details on the specific alternatives you are evaluating to manage these obligations without impacting NEP's growth trajectory?

2. While you've highlighted plans to invest approximately $1.9 billion through 2027 in competitive transmission projects  **[NEE_3370793_4]** **[NEE_3370793_15]** **[NEE_3370793_5]** , transmission development often faces regulatory and execution risks; how are you mitigating these risks, and what impact could potential delays or cost overruns have on your expected returns and growth targets?

3. Considering the draft hydrogen guidance that requires hourly matching, which increases costs and may limit project feasibility  **[NEE_3370793_12]** , how confident are you in the viability of your hydrogen initiatives, and what are your contingency plans if the regulatory framework remains unchanged?

4. Wind origination has been lower compared to solar and storage, with higher interconnection costs affecting certain projects  **[NEE_3370793_18]** **[NEE_3370793_13]** ; what specific strategies are you implementing to bolster wind additions to meet your 2025 and 2026 targets, and how do you plan to overcome these challenges?

5. With plans to repower approximately 985 megawatts of wind projects through 2026  **[NEE_3370793_5]** **[NEE_3370793_3]** **[NEE_3370793_9]** , repowering requires significant capital investment; how do you intend to fund these repowering projects without straining your balance sheet, especially considering the upcoming convertible equity portfolio financings that need to be addressed?

017e78ff6b3d4bea2f658f39773957766a9e1dd78c1fa98a41489f92a2faa582

Wind Capacity (MW)

Solar Capacity FPL (MW)

Solar Capacity Energy Resources (MW)

Solar Capacity Backlog (MW)

Solar Capacity New Projects (MW)

Wind Projects CapEx ($ million)

Solar Projects CapEx ($ million)

17a7d3dc5f97cbb966e8f39e7b2863aeb3aa7064903846c0f28e2b5f0f1b44c2

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

96042f8c41d39b895d55b7959f2292975e20c3e2f945f32651aa0259963dc4fa

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Program Details            | Program 1       |
|----------------------------|-----------------|
| Approval Date              | **May 2017**  **[0000753308-24-000057_nee-20240930.htm:89]**  |
| End Date/Duration          | **N/A**         |
| Total additional amount    | **180 million shares**  **[0000753308-24-000057_nee-20240930.htm:89]**  |
| Remaining authorization amount | **180 million shares**  **[0000753308-24-000057_nee-20240930.htm:89]**  |
| Details                    | Adjusted after a four-for-one stock split effective October 26, 2020  **[0000753308-24-000057_nee-20240930.htm:89]**  |

340ee50b1b6bc4f54d7eb104e2841550bbc44f284effbeea526908492d212b6c

NextEra Energy, Inc.

- Florida Power & Light

d966c9871c994d1061df53a87569051f7073e16c36ed9caa45258445095a668b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

1f670c9ac0f3a3dc78e806b9c3607e35b81613993fffab985e5b8dca5f8f5781

- NEE anticipates continued strong **customer growth** in its service territory, leading to expected growth and significant capital investments in the coming years. The company is positive about upcoming regulatory outcomes due to its focus on delivering value to customers.  **[NEE_3413234_13]**
- NEE has effectively managed its **interest rate risk** by implementing **$32 billion** of interest rate swaps at an average coupon of **3.9%**, which minimizes the impact of interest rate fluctuations on its earnings.  **[NEE_3413234_16]**
- NEE is exploring opportunities to **recommission the Duane Arnold nuclear plant**, which is in **good condition**. This could add valuable nuclear capacity to NEE's portfolio and demonstrates its leadership in nuclear operations.  **[NEE_3413234_10]**

7bc38f0a106a861c2d7ac7b03d57ab811b7d490e0fd167178bd74303c8b183c1

- NextEra Energy expects growth in their service territory to **slow down over the next four years** compared to post-pandemic levels, which could impact revenue growth.  **[NEE_3413234_13]**
- The company had to tap into its reserve mechanism due to **higher inflation and interest rates**, leading to **higher capital expenditures** than expected, potentially putting pressure on margins.  **[NEE_3413234_13]**
- **Rising costs and delays** in gas-fired generation projects, with costs **tripling** in price, may make these projects less economically viable and impact future growth plans.  **[NEE_3413234_11]**

c3f87932d064df13b71eccd727f5f08b4fc4532d1152583dd555498bd9a0e333

1. **Partnership with GE Renova**  
   **Q:** Will you co-own projects with GE Renova?  
   **A:** Yes, we will co-own gas-fired generation projects with **GE Renova** in a **50-50 joint venture**, focusing on long-term contracted assets and targeting large load customers by combining gas-fired generation with renewables and battery storage.  **[NEE_3413234_8]** 

2. **Administration Policies Impact**  
   **Q:** Any concerns about wind lease limits and IRA risks?  
   **A:** We support the new administration's mandates and believe in the need for all energy solutions, including gas, nuclear, renewables, and storage. Our onshore wind projects are mostly on private land, and we remain optimistic about working through any issues. Regarding the IRA, we emphasize that renewables are critical for meeting current power demand and create jobs, with **80% of our investments occurring in Republican states**. We plan to invest **$120 billion** over the next four years.  **[NEE_3413234_9]** 

3. **Duane Arnold Nuclear Recommissioning**  
   **Q:** What's the status and condition of Duane Arnold?  
   **A:** We've filed with the NRC to recommission Duane Arnold and are in active discussions with customers. The plant is in good shape; the only issue was damage to the cooling tower, which is conventional to rebuild. We see nuclear, including recommissioning existing plants, as contributing to meeting power demand over the next 3–5 years.  **[NEE_3413234_10]** 

4. **Gas-Fired Generation Timing**  
   **Q:** When will gas projects contribute to growth?  
   **A:** Given the time needed for site development, permitting, obtaining turbines, and construction, we expect gas-fired generation to contribute to growth around **2030 and beyond**. Costs have increased significantly, with gas turbine prices more than doubling and EPC labor costs tripling since our last gas plant. Some regions like ERCOT may see earlier development, but overall, we are being practical about timelines and costs.  **[NEE_3413234_11]** 

5. **FPL Growth and ROE Expectations**  
   **Q:** What's the outlook for FPL growth and ROE?  
   **A:** We continue to see strong growth in our service territory and expect to invest above the roughly **$36 billion** planned over the next four years. Our surplus reserve mechanism sits at around **$800 million** after using $400 million in 2024. We anticipate our **ROE to be slightly above 11.4%** in 2025.  **[NEE_3413234_13]** 

6. **Renewables Policy Impact on Customers**  
   **Q:** Are policies affecting customer conversations?  
   **A:** No, customers are primarily concerned about getting projects built to meet their power needs. They need resources now and focus on solutions available today at the lowest cost with high confidence. Time and money are top of mind for them.  **[NEE_3413234_15]** 

7. **Interest Rate Hedging**  
   **Q:** How are you managing interest rate exposure?  
   **A:** We've put **$32 billion** of interest rate swaps in place with an average coupon of around **3.9%**. Our sensitivities are about **$0.01 to $0.03** on EPS for 2025 and 2026, and **$0.03 to $0.05** for 2027, which we consider very manageable.  **[NEE_3413234_16]** 

8. **Customer Demand for Gas**  
   **Q:** Are customers more open to gas now?  
   **A:** Yes, there's increased interest in natural gas to enable capacity value, especially as customers focus on speed to market and reliable resources. Discussions include pairing gas with renewables, and some interest in behind-the-meter gas solutions, though we don't see that becoming the prevalent way to meet demand.  **[NEE_3413234_17]** 

fa952441d9a816271321fd2f90a3fb3e3e9da967f77f3a94f466f1aa381b452d

84d7c9c9c270bec4d86bcb745c1e2590c018be1a06351e8cc403d80432aa1e45

**Annual guidance for FY 2025, FY 2026, and FY 2027:**
- **Adjusted EPS**: at or near the top end of expectations (no prior guidance)  **[NEE_3413234_7]**   
- **Operating Cash Flow**: average annual growth from 2023 to 2027 at or above adjusted EPS CAGR (no prior guidance)  **[NEE_3413234_7]**   
- **Dividends per share**: plan to grow ~10% per year through at least FY 2026, based on a 2024 base (no prior guidance)  **[NEE_3413234_7]**   
- **Regulatory capital employed growth for FPL**: ~10% average annual growth through FY 2025 (no prior guidance)  **[NEE_3413234_5]**   
- **FPL’s base rate adjustments proposal**: $1.55B starting Jan 2026 and $930M starting Jan 2027 (no prior guidance)  **[NEE_3413234_5]**   
- **Interest rate hedges**: $28.5B in hedges; $32B in swaps at ~3.9% average coupon (no prior guidance)  **[NEE_3413234_7]** **[NEE_3413234_16]**   

c64abb8005379d7e0264f95596359505bdc48ed05af57267d3060e0bb4dac0f2

NEE’s Q4 shows slower growth ahead but a strong hedge against rates: $32B in swaps at a 3.9% average rate, limiting EPS impact to $0.01–$0.03 through 2026. This move highlights management’s focus on stable returns amid rising costs and capital investments.

cc77987fbc289ef8d9f47c3565567e90620d457624c929a0aeef3840febeb6a5

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1950  **[0000753308-24-000008_nee-20231231.htm:100]**    | Present  | Current auditor   |

8884fd4bd61d74d0acc353655111badd1012387c0f58183aae6494de0eaa1736

| Year  | Amount Due (in millions) | Debt Type                                                                                     | Interest Rate | % of Total Debt |
|-------|--------------------------|----------------------------------------------------------------------------------------------|---------------|-----------------|
| 2025  | $6,925 **[0000753308-24-000057_nee-20240930.htm:44]** **[0000753308-24-000057_nee-20240930.htm:76]**   | Revolving credit facilities, Bilateral revolving credit facilities for FPL and NEECH         | Variable      | 9.4% = (6,925 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2026  | $6,500 **[0000753308-24-000057_nee-20240930.htm:44]** **[0000753308-24-000057_nee-q32024xex22.htm:0]**   | Variable debentures, Floating rate debentures, Fixed debentures                              | 4.90% - 5.55% | 8.8% = (6,500 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2027  | $4,400 **[0000753308-24-000057_nee-20240930.htm:44]** **[0000753308-24-000057_nee-20240930.htm:76]**   | Exchangeable senior notes, Bilateral revolving credit facilities for NEECH                   | 3.00%         | 6.0% = (4,400 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2028  | $4,900 **[0000753308-24-000057_nee-20240930.htm:44]**           | Fixed debentures                                                                             | 1.90% - 4.90% | 6.7% = (4,900 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2029  | $5,700 **[0000753308-24-000057_nee-20240930.htm:44]**           | First mortgage bonds, Debentures related to equity units, Fixed debentures                   | 2.75% - 5.15% | 7.7% = (5,700 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2030  | $2,250 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Fixed debentures                                                                             | 2.25% - 5.00% | 3.1% = (2,250 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2031  | $744 **[0000753308-24-000057_nee-20240930.htm:44]**             | Canadian dollar-denominated debentures                                                       | 4.85%         | 1.0% = (744 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2032  | $2,440 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Fixed debentures                                                                             | 2.44% - 5.00% | 3.3% = (2,440 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2033  | $5,050 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Fixed debentures                                                                             | 5.05%         | 6.9% = (5,050 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2034  | $5,250 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Fixed debentures                                                                             | 5.25%         | 7.1% = (5,250 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2054  | $4,900 **[0000753308-24-000057_nee-20240930.htm:44]**           | First mortgage bonds, Junior subordinated debentures                                         | 5.55% - 6.75% | 6.7% = (4,900 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2055  | $363 **[0000753308-24-000057_nee-20240930.htm:44]**             | Senior secured limited-recourse notes                                                        | 5.93%         | 0.5% = (363 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2062  | $4,300 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Fixed debentures                                                                             | 4.30%         | 5.8% = (4,300 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2077  | $2,000 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Junior subordinated debentures                                                               | N/A           | 2.7% = (2,000 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |
| 2082  | $5,250 **[0000753308-24-000057_nee-q32024xex22.htm:0]**           | Junior subordinated debentures                                                               | N/A           | 7.1% = (5,250 / 73,657) * 100 **[0000753308-24-000057_nee-20240930.htm:84]** **[0000753308-24-000057_nee-20240930.htm:34]** |

7149124241cc9d59a098b23c7e749c8768d9a675c63ab2777028204d40a86aad

- **Potential changes in U.S. political leadership could threaten the sustainability of the Inflation Reduction Act (IRA) provisions**, which are critical for NextEra Energy's renewable energy projects.  **[NEE_3370793_11]**
- **NextEra Energy had to remove 350 MW from their project backlog due to higher interconnection costs and project-specific issues**, indicating potential risks of delays and increased costs in their renewable energy project development pipeline.  **[NEE_3370793_18]**
- **NextEra Energy's financing plans rely heavily on tax equity and the monetization of tax credits through transferability**, which could pose risks if market conditions change or demand for tax credits decreases.  **[NEE_3370793_16]**

9b92ae0c21da8f86b9e085f051f2edd33695145f6df326892dd9aa61f01276ab

1. **Funding Plan & Tax Credit Transferability**  
   **Q:** How does tax credit transferability impact your funding plan?  
   **A:** John Ketchum explained that **$1 billion** in tax transfers creates **$6.5 billion** of equity content by dividing the $1 billion by the **18% FFO-to-debt ratio**, netting **$5.5 billion**, and adding the $1 billion cash received.  **[NEE_3361636_9]**  The cash shows up in **cash flow from operations**, and the equity content benefits other sources, including corporate debt issuances.  **[NEE_3361636_10]**  Demand for tax credit transfers is **extremely robust**, with relationships built with **50 top U.S. taxpayers**, leveraging their strong balance sheet to get preferred pricing.  **[NEE_3361636_16]** 

2. **Interest Rate Exposure & Hedging**  
   **Q:** How are you managing interest rate risk and exposure?  
   **A:** John Ketchum stated they use interest rate swaps with **5- to 10-year tenors** and an average coupon of **375 basis points**, protecting against interest rate sensitivity.  **[NEE_3361636_20]**  The impact is **zero** in '23 to '24 and **$0.03 to $0.05** in '25 and '26.  **[NEE_3361636_20]**  They hedge about **70%** of project debt, including exposure on project and corporate debt issuances.  **[NEE_3361636_11]** 

3. **Renewables Demand & Returns**  
   **Q:** How is demand and returns in the renewables market?  
   **A:** Rebecca Kujawa reported a record **3.2 gigawatts** of signings this quarter, indicating strong demand despite higher capital costs.  **[NEE_3361636_12]**  Returns for storage and wind projects are over **20%**, maintained through their competitive advantages in scale and execution.  **[NEE_3361636_15]**  Adoption of storage is expanding beyond California into the Midwest  **[NEE_3361636_22]** , and they feel good about long-term demand for wind and repowering projects.  **[NEE_3361636_22]** 

4. **NEP's Texas Pipeline Sale**  
   **Q:** Any updates on the Texas Pipeline sale process?  
   **A:** John Ketchum said they are working diligently, with progress advancing despite a more challenging macroeconomic environment.  **[NEE_3361636_13]**  They aim to maximize value for unitholders and will provide further updates on the fourth-quarter call or before.  **[NEE_3361636_13]** 

5. **Sources & Uses of Cash**  
   **Q:** Are there levers to offset equity needs if markets become challenging?  
   **A:** John Ketchum is focused on costs, capital productivity, and efficiency.  **[NEE_3361636_14]**  He expects to recycle more than **$3 billion** in asset sales, leveraging their success in selling renewable projects to NEP and third parties.  **[NEE_3361636_14]**  He feels good about their sources plan and ability to execute against it.  **[NEE_3361636_14]** 

6. **Supply Chain Status**  
   **Q:** What is the status of your supply chains?  
   **A:** John Ketchum stated that supply chain issues have **improved significantly**.  **[NEE_3361636_23]**  Circumvention and forced labor issues have been addressed.  **[NEE_3361636_23]**  They have significant inventory of grid-level equipment like transformers, having gone long on these items.  **[NEE_3361636_23]**  Their scale allows them to secure manufacturing lines, a competitive advantage.  **[NEE_3361636_23]** 

7. **Florida PSC Rate Case Settlement**  
   **Q:** What are your expectations regarding the Florida PSC rate case settlement process?  
   **A:** Armando Pimentel explained that the Supreme Court remanded the settlement to the PSC, which will take it up soon and likely resubmit in the **first quarter of next year**.  **[NEE_3361636_24]**  They don't expect the record to be reopened, similar to the process followed in the Duke case.  **[NEE_3361636_24]** 

d28cc1a1bb6184a2fbe18066703e76386b713f46d6085da61a382b4745e63217

- **Regulatory uncertainty**: The Florida State Supreme Court remanded NextEra Energy's settlement agreement back to the Public Service Commission, creating uncertainty about the approval of the rate case settlement and potential impacts on timing and outcomes.  **[NEE_3361636_8]**
- **Sustainability of high returns in renewables**: NextEra Energy reported over **20% returns for storage and wind**, higher than previously indicated, raising concerns about whether this level of return is sustainable given increased competition and the potential impact of higher PPA prices on demand in the renewables market.  **[NEE_3361636_15]**
- **Reliance on complex financial strategies**: The company's funding plan relies on tax credit transferability and asset recycling, including raising approximately **$3 billion of equity** and **$3 billion from asset sales**. This dependence may pose risks if capital market conditions become more challenging, potentially affecting their ability to meet funding needs without impacting the balance sheet metrics.  **[NEE_3361636_19]** **[NEE_3361636_9]** **[NEE_3361636_14]**

702400a76e5be1fe4b0c037fe42af9ef98d5edfe7e9b6803d4c55004d2aa3bdb

1. **IRA Provisions Stability**  
   **Q:** How will a Republican trifecta affect IRA provisions?  
   **A:** Management believes that repeal of the IRA is unlikely even if Republicans gain control. They note that tax credits have never been repealed despite past political shifts, and that the IRA benefits both parties, particularly Republican states and rural communities that gain jobs and economic growth from renewable projects.  **[NEE_3370793_11]** 

2. **Capital Allocation and Dividend Growth**  
   **Q:** How do you balance growth funding and dividend growth?  
   **A:** The company prioritizes allocating capital to renewables and transmission due to high returns—**low 20%** levered ROE in wind and storage, and **mid-teens** in solar. Funding is traditionally through tax equity, project finance, and transferability provisions, focusing on investments with the best returns.  **[NEE_3370793_17]** 

3. **Monetizing Tax Credits**  
   **Q:** What's your plan to monetize tax credits: tax equity or transferability?  
   **A:** They're encouraged by the transferability market, seeing strong demand for NextEra Energy tax credits. They will optimize between project finance, transferability, and tax equity within their 2024–2026 funding plan, utilizing transferability as an option going forward.  **[NEE_3370793_16]** 

4. **Repowering Funding and Financing Needs**  
   **Q:** How are you funding repowering, and updates on financing issues?  
   **A:** For repowering, they consider project financing paired with transferability and tax equity. Regarding convertible equity portfolio financings due in **2027 and beyond**, they are exploring all options to maximize unitholder value, without a specific update timeline.  **[NEE_3370793_9]** 

5. **Renewables Targets Confidence**  
   **Q:** Confidence in achieving '25–'26 wind targets?  
   **A:** Management feels good about meeting development expectations overall. While the mix is more towards solar and storage, wind has a short development cycle—projects can be in service in as little as **9 months**—so there's still time to add more wind projects before 2026.  **[NEE_3370793_13]** 

6. **FEC Investigation Update**  
   **Q:** Any updates on the FEC investigation?  
   **A:** There are no updates; they have not been contacted by the FEC. Historically, it takes **12–18 months** after notification to hear back. The allegations involve small amounts (around **$1.3–$1.5 million**), which are not material. How and when they update investors depends on what they hear from the FEC.  **[NEE_3370793_10]** 

7. **Transmission Growth Prospects**  
   **Q:** What's the outlook for transmission growth and EBITDA contribution?  
   **A:** They're thrilled with recent transmission awards, with in-service dates out to **2027**. As they invest capital, transmission will become a more material contribution over time. Transmission is crucial to unlock renewables opportunities, and they plan to provide more details at the investor conference.  **[NEE_3370793_15]** 

8. **Data Center Strategy and Hydrogen**  
   **Q:** Updates on data center strategy and thoughts on hydrogen rules?  
   **A:** There's explosive demand in data centers, especially due to generative AI, and they have over **3 GW** of projects in the backlog for these customers. On hydrogen, current draft guidance increases costs due to hourly matching requirements; they advocate for relaxed rules to kick-start the hydrogen market.  **[NEE_3370793_12]** 

9. **Backlog Additions and Removals**  
   **Q:** Can you explain the changes in your backlog?  
   **A:** Backlog additions are strong, but some projects were removed due to project-specific issues like higher interconnection costs. These projects may return after issues are resolved. Such adjustments are normal in development, and the overall impact is minimal in a **20+ GW** portfolio.  **[NEE_3370793_18]** 

10. **Market Share Opportunities**  
    **Q:** Are you gaining market share from small developers?  
    **A:** They prioritize their greenfield portfolio but remain opportunistic about acquiring development rights. The challenging environment for small developers may present opportunities, but they focus on serving customers through their own development efforts for long-term growth.  **[NEE_3370793_14]** 

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- **NextEra Energy reported a record quarter of new renewables and storage origination, adding approximately 3,245 megawatts** to the backlog, indicating strong demand and growth prospects in the renewable energy market.  **[NEE_3361636_12]**
- The company expects **return on equity for its backlog to be in the mid-teens for solar and over 20% for wind and storage**, maintaining high returns despite higher interest rates.  **[NEE_3361636_15]** ,  **[NEE_3361636_12]**
- **NextEra Energy's strong balance sheet provides a significant competitive advantage**, allowing it to fund growth without issuing additional equity in 2023 and **limiting total equity needs to no more than $3 billion from 2024 through 2026**.  **[NEE_3361636_3]** ,  **[NEE_3361636_9]**

261b9b093709366845bd79bf2716be6d5ca3539bdc2175c7ed6c789980c1e089

- **Explosive demand from data centers driven by generative AI**: NEE is experiencing enormous demand growth from data centers, specifically due to **generative AI**. They have over **3 gigawatts** of projects in their backlog for these customers, which is just the **"tip of the iceberg"**, indicating significant growth potential.  **[NEE_3370793_12]**
- **Strong backlog and resilience despite development challenges**: Despite minor project-specific removals due to higher interconnection costs, NEE has a strong backlog exceeding **20 gigawatts**. These removals are **"de minimis"** in context, and the company has navigated past issues like antidumping duties, inflationary pressures, and interest rates, returning to **"normal development"**.  **[NEE_3370793_18]**
- **Stable policy environment with low risk of IRA repeal**: NEE believes that the Inflation Reduction Act provisions are unlikely to be repealed, citing over **21 years** without a repeal of tax credits, and highlighting that IRA benefits both parties, supporting economic growth in rural communities. This stability supports NEE's renewable energy growth prospects.  **[NEE_3370793_11]**

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Nextera Energy Inc (NEE)

Financials