Nextera Energy Inc (NEE)

“Our timing hasn't changed, Carly, from where the negotiations are to where we're looking for those projects to come online.”

“So I think we feel really good about the 12 gigawatts that we have in advanced discussions. And as John said, we feel really confident about making a large load announcement before the end of the year.”

“And also at FPL. That's why we took our forecast up from 6 to 8 gigawatts, continue to see a lot of interest in Florida and feel good about our ability to announce a large load transaction there by the end of the year, which is the expectation we continue to express to investors.”

“We're obviously not changing our current development -- our current earnings expectations. They remain at 8% plus through 2032 with a target of 8% plus through 2035.”

“Our 2026 adjusted earnings per share expectations range of $3.92 to $4.02 remains unchanged, and we are targeting the high end of that range.”

“For solar, we've secured panels through 2029.”

“We talked about our transmission business jointly with electric and gas moving from mid-single digits into the 20s.”

“On the return side, continuing to see returns trend up across the board.”

“And we also continue to expect to grow our dividends per share roughly 10% per year through 2026 off a 2024 base and 6% per year from year-end 2026 through 2028.”

“From 2025 to 2032, we expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range.”

“We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and are targeting the same from 2032 through 2035, all off the 2025 base of $3.71 of adjusted earnings per share.”

“Overall, we are well positioned with approximately 2 years to add 18.6 gigawatts to our backlog to be at the midpoint of those expectations.”

“FPL's capital expenditures were approximately $2.8 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion.”

“We expect the combination will close in the second half of 2027.”

“As we discussed in May, the combined company is expected to support approximately 11% annual growth in regulatory capital employed through 2032 and 9% plus adjusted EPS growth through 2032 with a 9% plus target through 2035, all off a 2025 base.”

“We expect to more than double the size of our combined company by 2032, which would mean good jobs for many years to come for our talented teams across the 4 states we would serve and across America where we operate.”

“We continue to advance development of up to 9.5 gigawatts of gas-fired generation projects in Texas and Pennsylvania.”

“We remain on track to bring the plant back online no later than Q1 2029.”

“We also have 4 origination channels feeding into our base case goal of securing 15 gigawatts of new generation to serve large load by 2035.”

“In fact, we now have 30 potential hubs we are discussing with the market, and we continue to expect that number to rise to 40 by year-end.”

“Initially, we expect every gigawatt of large load under FPL's approved tariff to be equivalent to roughly $2 billion of CapEx and to earn the same return on equity as other FPL investments.”

“FPL is advancing negotiations with large load customers and continues to expect to announce at least one large load transaction under FPL's tariff by the end of the year.”

“That is why in May, we updated our expectations from 6 gigawatts to 8 gigawatts of large load by 2032.”

“Look, we still are looking at, I think, the second half of 2027, but we would obviously look for opportunities to move that up wherever we can.”

“These 4 origination channels won't just help us achieve our base case of 15 gigawatts, they can also help us achieve our upside case of 30 gigawatts or more by 2035.”

“in terms of turbine supply, we'll have ample supply to turbines. Not concerned about that for both of those projects.”

“Our 2026 adjusted earnings per share expectations range of $3.92 to $4.02 remains unchanged, and we are targeting the high end of that range.”

“The plant remains on track to reenter service no later than Q1 2029.”

“6% per year from year-end 2026 through 2028.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through '26 and of a 2024 base and 6% per year from year-end 2026 through 2028.”

“From 2025 to 2032, we expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range.”

“We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and are targeting the same from 2032 through 2035.”

“We've secured key wind components domestically for our new build expectations through 2027.”

“FPL's capital expenditures were approximately $3.2 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion.”

“As the PPAs begin to expire over the next several years, we believe recontracting will command a higher price.”

“We now have 4 origination channels feeding into our base case goal of securing 15 gigawatts of new generation to serve large load by 2035.”

“All told, we expect our combined electric and gas transmission business at Energy Resources to grow to $20 billion of total regulated and investment capital by 2032, a 20% compounded annual growth rate off a 2025 base.”

“Initially, we expect every gigawatt of large load under FPL's approved tariff to be equivalent to roughly $2 billion of CapEx and to earn the same return on equity as other FPL investments.”

“We are making good progress on this front, and we continue to expect at least one large load customer to sign up for capacity under FPL's tariff by the end of the year.”

“FPL's bills are approximately 30% below the national average and only projected to grow on average about 2% annually through the end of the decade.”

“FPL expects to invest between $90 billion and $100 billion through 2032, primarily to support Florida's growing economy.”

“We'll probably see that as we start to move out here in the coming quarters, but this is just kind of fundamental demand for fundamental growth that's tied to what's the best economic answer for the demand that's in front of us as opposed to people trying to move in, in advance of the tax credits.”

“So far, we have about 21 gigawatts of large load interest at FPL. Of that, we are in advanced discussions on about 12 gigawatts, a portion of which we believe we could begin serving as soon as 2028.”

“Sure. Listen, I think our confidence continues to be high. PJM management continues to recommend we expect them to continue to recommend for the board and the ultimate board meeting up.”

“We expect PJM to make a decision on this project next month.”

“I also think it's very likely that we will have announcements in 2026 regarding large load in our service territory.”

“Our 2026 adjusted earnings per share ranges of $3.92 to $4.02 per share remain unchanged, and as we said in December, we are targeting the high end of that range.”

“We won't convert every single hub, but I'll be disappointed if we don't double our goal and deliver at least 30 gigawatts through this channel by 2035.”

“We don't see this demand slowing.”

“But my expectation is, as I answered the question before, is that in 2026, based on what we are seeing, the interest that we are seeing on the ground here in Florida and particularly in the FPL service territory, that there will be some announcements in 2026.”

“To answer your question as specific as I can, my expectations is that in 2026 that there will be announcements regarding large load in our service territory.”

“And when you unpack that 15 to 35 gigawatts, the composition of it is roughly six gigawatts of gas-fired generation by 2035, and it's going COD by 2035”

“In renewables, it's about 15% to 20%. In storage, about 20% to 30%, and in gas, through 2032, it's only 5% to 10%, you know, market share.”

“and 6% per year from year-end 2026 through 2028.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through 2026, off a 2024 base, and 6% per year from year-end 2026 through 2028.”

“From 2025 to 2032, we expect that our average growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range.”

“We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032, and are targeting the same from 2032 through 2035, all off a 2025 base of $3.71 of adjusted earnings per share.”

“As the PPAs begin to expire over the next several years, we believe recontracting will command a higher price.”

“And it gives us one potential path to achieve the six gigawatts, the midpoint of our development expectations, of new gas-fired generation build through 2032.”

“Putting it all together, we expect our combined electric and gas transmission business at Energy Resources to grow to $20 billion of total regulated and invested capital by 2032, a 20% compounded annual growth rate off a 2025 base.”

“FPL expects typical residential customer bills to increase only about 2% annually between 2025 and 2029, which is lower than the current inflation rate of about 3%.”

“FPL expects to invest between $90 billion and $100 billion through 2032, primarily to support Florida's growth while continuing its track record of keeping customer bills low and reliability high.”

“Our expectations are to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032, and we are targeting the same from 2032 through 2035, all off the 2025 base.”

“Of that, we are in advanced discussions on about nine gigawatts, a portion of which we now believe we could begin serving as soon as 2028.”

“And these moves really just don't have any impact on our ability to meet our financial expectations that we've communicated to investors.”

“We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted earnings per share expectation ranges in 2025, 2026 and 2027.”

“We have a lot of existing generation that rolls off a contract by the end of the decade that we're going to be able to recontract into the market at much higher premiums.”

“I think we've got more quarters to go in terms of filling the '27 piece.”

“So we're just shifting that from '25 to '26.”

“I think we're going to get it all back in '26 and '27 on that 650 megawatts.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base.”

“From 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range.”

“We expect the backlog additions will go into service over the next few years and into 2029.”

“And once restarted, we expect Duane Arnold to contribute up to $0.16 of annual adjusted EPS on average over its first 10 years of operation.”

“We expect Duane Arnold will be eligible for a nuclear production tax credit with a 10% energy community bonus.”

“The 615-megawatt plant is just the beginning and will help power Google's growing cloud and AI infrastructure in Iowa once it returns to operation, which we expect to occur no later than the first quarter of 2029 and perhaps as early as the fourth quarter of 2028.”

“We expect to receive tax credits for our renewable development plans through 2030, while our suppliers are positioned to be FEOC compliant.”

“If the proposed agreement is approved, typical residential customer bills would increase only about 2% annually between 2025 and 2029.”

“I wouldn't expect that differential to continue throughout the rest of the year.”

“FPL's capital expenditures were approximately $2 billion for the quarter, and we expect FPL's full year capital investments to be between $8 billion and $8.8 billion.”

“we believe that we've begun construction on a sufficient number of projects to cover our development expectations through 2029.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectation ranges in 2025, 2026 and 2027.”

“If state regulators approve our plan, a typical FPL residential bill will grow at an annual average rate of just 2.5% from 2025 through 2029.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base.”

“From 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range.”

“We expect the backlog additions will go into service over the next few years and into 2029.”

“When I look at the demand and the outlook in the renewable sector going forward, and we always are looking a quarter out or so. I mean, we just continue to see strong demand across the board and with hyperscalers being a nice size part of that.”

“I would expect - that's my point around opportunity that given the position that we're in around tariffs, I expect a lot of opportunity to come our way as small developers just aren't in the position we are.”

“As we previously discussed, FPL historically uses more reserve amortization in the first half of the year. We expect this trend to continue this year.”

“We continue to expect FPL to realize more than 10% average annual growth in regulatory capital employed over our current rate agreement's 4-year term, which runs through 2025.”

“In short, our tariff exposure on batteries is expected to be negligible and we expect our domestic sourcing options to create significant competitive advantages for us and our customers going forward as we originate new battery storage projects.”

“That's $150 million on $75 billion of CapEx. That's less than 0.2%. And we feel like we've got a good shot at getting that to zero.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2025, 2026 and 2027.”

“We also continue to expect to grow our dividends per share at a roughly 10% rate per year through at least 2026 off of a 2024 base.”

“From 2023 to 2027, we expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“We believe that FPL's typical residential customer bill will grow at an average rate of about 2.5% from January in 2025 through the end of 2029, which is expected to result in FPL's typical residential bill being approximately 25% below the projected national average and more than 20% lower than our typical bills 20 years ago when adjusted for inflation.”

“FPL is planning to deploy over 7.6 gigawatts of battery storage, which provides cost-effective capacity.”

“The 2025 plan projects the need for over 17 gigawatts of cost-effective solar generation across our service territory over the next 10 years.”

“Once we work with our customers, we expect our $150 million tariff exposure to be significantly reduced, potentially down to zero.”

“We currently estimate Energy Resources has less than $150 million in tariff exposure through 2028 on over $75 billion in expected capital spend.”

“Assuming we achieve the midpoint of our development expectations range, Energy Resources will be operating in more than 70 gigawatt generation and storage portfolio by the end of 2027.”

“FPL plans to invest nearly $50 billion from 2025 to 2029 and add more than 25 gigawatts of new generation of battery storage by 2034.”

“Looking ahead, at FPL, we continue to see growth on the horizon, and we are projecting to add roughly 335,000 customer accounts through 2029.”

“As a reminder, for the period 2022 through the end of 2025, FPL plans to invest approximately $36 billion with additional significant investments expected in 2026 and beyond to continue to meet the growing needs of Florida's economy.”

“Take our own CapEx. We've been top five infrastructure investor over the last five years, fully expect that to be the case over the next four years.”

“We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2025, 2026 and 2027.”

“NextEra is going to invest $120 billion over the next four years. That's our expectation.”

“we will also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base.”

“From 2023 to 2027, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“If the full amount of the requests were granted under our proposal and assuming other utilities experienced bill increases only at their historical rates of increase, we expect FPL's typical customer bills will continue to remain significantly lower than the national average through 2029.”

“FPL estimates that its proposal, along with the projections for fuel and other costs, will grow a typical residential customer bill by an average annual rate of approximately 2.5% from January 2025 through 2029.”

“assuming we achieve the midpoint of our development expectations range, Energy Resources will be operating a roughly 75 gigawatt renewables portfolio by the end of 2027, which would be larger than the installed renewables capacity of all but seven countries.”

“we expect to add more than 15 gigawatts by 2033.”

“Over the next four years alone, we plan to invest roughly $120 billion across the country, which would allow us to grow our combined fleet to roughly 121 gigawatts.”

“Our expectations going into the next rate case over the next four years is that growth may come down a little bit over the next four years because of what we saw during the pandemic. But we still believe it's going to be fairly strong growth in our service territory.”

“Recently, we filed notice with the Nuclear Regulatory Commission to request a licensing change, an important first step in establishing the regulatory pathway to restore the facility's operating license and potentially restart plant operations as early as the end of 2028.”

“It is clearly a change dynamic in terms of need for what we have to offer. And it's safe to say that there are opportunities for us to improve margin and where that makes sense, we certainly are taking advantage of that. So I would say it's much more of an upward trajectory than staying the same and certainly not going down.”

“So look, that business has done great, and we expect it continue to be a solid contributor going forward, but some of what we saw coming off of '22 has subsided and that's really the commentary that we were trying to get across in our prepared remarks today.”

“NextEra Energy Partners plans to complete its review by no later than the fourth quarter 2024 call and intends to provide its distribution and run rate cash available for distribution expectations at that time.”

“NextEra Energy Partners continue to expect the run rate contribution for adjusted EBITDA from its forecasted portfolio at December 31, 2024 to be in the range of $1.9 billion to $2.1 billion.”

“We still expect the regulatory ROE for the 12 months ending December 2024 and 2025 to be 11.4%.”

“We intend to recover those deferred costs and replenish the storm reserve via storm surcharge on customers' bills over the calendar year 2025.”

“Over the current four year settlement agreement, we expect FPL's capital investments to exceed $34 billion.”

“FPL's capital expenditures were approximately $2 billion for the quarter, and we expect FPL's full year 2024 capital investment to be between $8 billion and $8.8 billion.”

“We have fully derisked our safe harbor program. I mean, we're bought through '29.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2024, 2025, 2026 and 2027.”

“At this point, I would say we continue to feel comfortable with the expectations that we laid out in greater detail at the investor conference in June, where we think our overall 4 year development expectations are in aggregate through 2027.”

“The partnership's organic growth opportunities have expanded and we are increasing our wind repowering target to approximately 1.9 gigawatts of wind projects owned by NextEra Energy Partners through 2026, which is up from the previous target of 1.3 gigawatts.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a base -- off a 2024 base.”

“In 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“This potential growth in the portfolio would enable a long-term co-located storage opportunity set of more than 50 gigawatts by the end of 2027, creating a meaningful opportunity for us to win new business and continue to deliver superior returns.”

“If we achieve the midpoint of our development expectations, this pace of development is expected to more than double our combined renewable generation portfolio, growing from 38 gigawatts today to potentially 81 gigawatts by the end of 2027.”

“Look, I think going forward our preference would be to remain the owner of NextEra Energy Partners.”

“Although FPL has not completed the final accounting, our preliminary estimate of restoration costs that we plan to recover from customers through a surcharge is approximately $1.2 billion inclusive of $150 million, which will be utilized to replenish the storm reserve.”

“I think that is certainly achievable and potentially higher.”

“NextEra Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31, 2024 to be in the ranges of $1.9 billion to $2.1 billion and $730 million to $820 million respectively.”

“We expect the annualized rate of the fourth 2024 distribution that is payable in February 2025 to be $3.73 per common unit.”

“Similar to what we saw this quarter, the increased contributions from new investment driven by the strength of our renewable development program are expected to more than offset any slowing in gas infrastructure growth going forward.”

“Over the current four year settlement agreement, we expect FPL's capital investments to exceed $3 billion, $4 billion.”

“We continue to expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreements four year term, which runs through 2025.”

“FPL fully expects to seek recovery of these increased expenditures in its rate case filing next year.”

“NextEra Energy Partners does not need an acquisition related financing in 2024 to meet its 6% target and does not need gross equity until 2027.”

“We will be disappointed if we're not able to deliver financial results at or near the top-end of our adjusted EPS expectations range in 2024, 2025, 2026 and 2027.”

“An 11.4% percent regulatory ROE is expected to have a $0.06 EPS impact in each of 2024 and 2025, which has already been taken into account in our financial expectations, and we will be disappointed if we are unable to deliver financial results at or near the top of our adjusted earnings per share expectation ranges each year through 2027 at NextEra Energy.”

“At the same time, the partnership's 6% distribution growth target remains for now.”

“NextEra Energy Partners expects the partner's payout ratio to be in the mid to high 90s through 2026.”

“The partnership continue to see 5% to 8% growth per year in LP distributions per unit with the current target of 6% growth per year as being a reasonable product range of expectations through at least 2026.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through at least ‘26 off of 2024 base.”

“From 2023 to 2027, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“We expect the backlog additions will go into service over the next few years and into 2028.”

“mid-teens for solar and above 20% levered returns for wind and storage technologies.”

“We've contracted all of our panel needs through February 26, and we have very minimal exposure to the bifacial exemption being removed.”

“The bottom line, the bifacial exemption, even if it's removed, really has no impact on NextEra.”

“we don't expect any trade action, if it were to occur, to result in delivery stoppages.”

“we expect that any trade actions that would occur this time around will be very manageable and for several reasons”

“NextEra Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31, 2024 to be in the ranges of $1.9 billion to $2.1 billion and $730 million to $820 million respectively.”

“We expect the annualized rate of the fourth quarter 2024 distribution that is payable in February 2025 to be $3.73 per common unit.”

“NextEra Energy Partners does not expect to need an acquisition this year to achieve its 6% targeted growth rate and the partnership does not expect to require growth equity until 2027.”

“The third convertible equity portfolio financing associated with the Meade natural gas pipeline assets is expected to be addressed in 2025.”

“Over the current four-year settlement agreement we now expect FPL's capital investments to be slightly above our previous range of $32 billion to $34 billion.”

“FPL's typical 1000 kilowatt hour residential customer bill is expected to be roughly $14 lower in May than the start of the year and approximately 37% lower than the current national average.”

“As we've previously discussed, FPL historically utilizes more reserve amortization in the first half of the year, and we expect this trend to continue this year.”

“We now expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreements four-year term, which runs through 2025.”

“the Board of Directors of NextEra Energy approved a targeted growth rate in dividends per share of roughly 10% per year through at least 2026 off a 2024 base.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2024, 2025 and 2026.”

“We continue to expect the partnerships payout ratio to be in the mid-90s through 2026.”

“we continue to see 5% to 8% growth per year in LP distributions per unit, with a current target of 6% growth per year as being a reasonable range of expectations through at least 2026.”

“Today we are announcing plans to repower an additional approximately 100 MW of wind facilities through 2026.”

“we continue to focus on executing against the partnerships transition plan and delivering an LP distribution growth target of 6% through at least 2026.”

“From 2021 to 2026, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“We continue to expect to remain on track for our overall renewables development expectations of roughly 33 to 42 gigawatts from 2023 through 2026.”

“the operating fleet could grow to over 100 gigawatts by the end of 2026.”

“My expectations are that as time goes on, that we would likely add more storage to our plans going forward, because it is that attractive in the overall economics, especially as we add solar, which again, continues to be the best proposition from a cost standpoint for our customers.”

“The capital plan of the current rate agreement of $32 billion to $34 billion extends our customer value proposition and provides clear visibility for growth through 2025.”

“NextEra Energy Partners is introducing December 31, 2024 run rate expectations for adjusted EBITDA in a range of $1.9 billion to $2.1 billion and cash available for distribution in a range of $730 million to $820 million reflecting calendar year 2025 expectations for the forecasted portfolio at year end 2024.”

“We expect the annualized rate of the fourth quarter 2024 distribution that is payable in February 2025 to be $3.73 per common unit.”

“While the partnership does not expect to need an acquisition in 2024, the LP distribution growth target of 6% is supported, in part with roughly 175 MW of wind repowers, which are expected to generate attractive cash available for distribution yields.”

“And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2024 off a 2022 base.”

“The third convertible equity portfolio financing associated with the Meade natural gas pipeline assets is expected to be addressed in 2025.”

“We continue this trend in 2023 by placing into service approximately 1, 200 megawatts of cost effective solar and expect to add roughly 4, 800 megawatts over the current rate agreement.”

“Ultimately, all these tailwinds are great for customers, and we believe should drive greater renewables demand in 2024 and beyond, all on the heels of consecutive record years for new renewables originations at Energy Resources in 2022 and 2023, totaling over 17 gigawatts.”

“So overall, with all those comments in context, I feel really good about meeting our development expectations in aggregate.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2024, 2025, and 2026.”

“Energy Resources continues to see strong demand and is well positioned to realize its development expectations over the four year period ending 2026.”

“But we are seeing really good demand for the credits and expect to continue to utilize transferability as an option going forward.”

“We continue to expect the partnership payout ratio to be in the mid-90s through 2026.”

“From an updated base of our fourth quarter 2023 distribution per common unit and an annualized rate of $3.52, we continue to see 5% to 8% growth per year in LP distributions per unit with a current target of 6% growth per year as being a reasonable range of expectations through at least 2026.”

“Today, we are announcing plans to repower an additional approximately 245 MW of wind facilities through 2026.”

“From 2021 to 2026, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“We are executing against the growth plans and have identified approximately 985 megawatts of wind repowers through 2026 making progress against our expectations.”

“Looking ahead to 2024 and beyond, NextEra Energy Partners does not expect the need and acquisition in 2024 to meet the 6% growth and LP distributions per unit target and the partnership does not expect to require growth equity until 2027.”

“Turning to NextEra Energy Partners, we continue to focus on executing against the partnership's transition plans and delivering an LP distribution growth target of 6% through at least 2026.”

“We anticipate deploying approximately $1.9 billion of capital through 2027 to complete these transmission projects, which we estimate could enable up to 12 gigawatts of new renewables.”

“Assuming we achieve the midpoint of the range, Energy Resources will be operating a roughly 63 gigawatt renewable portfolio by the end of 2026.”

“And by 2032, we expect to increase FPL's solar from 5% of our total generation today to roughly 35% by adding over 15, 000 incremental megawatts.”

“By 2026, Energy Resources could operate up to 53 gigawatts of generation with the potential to co-locate battery storage, which represents a great long-term opportunity, especially considering the likely future capacity needs of customers.”

“By 2026, Energy Resources' wind footprint could be roughly 32 gigawatts, and with over a decade to potentially qualify for repowering, it represents a great opportunity set.”

“The demand is extremely robust for tax credit transfers and we're already working on '24 as we speak, having '23 pretty much behind us.”

“We don't expect our record to be reopened and made sure that they put together a conclusion that would be satisfactory in their view with the Supreme Court and send it back to the Supreme Court.”

“NextEra Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distributions from its forecasted portfolio at December 31, 2023 to be in the range of $1.9 billion to $2.1 billion and $730 million to $820 million, respectively.”

“Importantly, NextEra Energy Partners does not expect to need an acquisition in 2024 to meet the 6% growth in distributions per unit target.”

“Going forward, we are encouraged by the trends we are seeing in lower equipment pricing for solar panels and batteries, given increased competition globally, and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices.”

“The expected returns on equity for our backlog are mid-teens for solar and over 20 for wind and storage.”

“We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus mechanism over the remaining settlement period.”

“We do not expect to issue any equity for the balance of 2023 and expect our year-end credit metrics to exceed those specified by the agencies to support our current ratings.”

“Over the current four-year settlement agreement, we continue to expect FPL to make capital investments of between $32 billion to $34 billion.”

“We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current rate agreement's four-year term, which runs through 2025.”

“look at when I think about the $3 billion of equity and the $3 billion of asset recycling, if you look historically at what we've been able to do, I'd be pretty disappointed if we can only do $3 billion of asset recycling, not only through NEP, but third parties”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026.”

“So I believe that we're in a good position to continue realizing strong demand, particularly in that 24 timeframe to 26 timeframe.”

“It has plans to add approximately 20 gigawatts of solar over the next 10 years for the benefit of its customers while undergrounding its distribution system to lower operating costs and withstand the impacts of hurricanes to help keep the Florida economy, which is now the 16th largest in the world, running on all cylinders.”

“We are also focused on delivering LP distribution growth of 6% through at least 2026, and the repowerings we announced today are a good start towards achieving that objective.”

“From a base of our second quarter 2023 distribution per common unit at an annualized rate of $3.42, we continue to see 5% to 8% growth per unit per year in LP distributions per unit, with a current target of 6% growth per year, being a reasonable range of expectations through at least 2026.”

“Today, we're announcing plans to repower approximately 740 megawatts of wind facilities through 2026, which require the final approval of the customer's board of directors, which is expected to be received in the near term.”

“Through the period of our current financial expectations, that would leave a small equity buyout of roughly $147 million on the genesis holding convertible equity portfolio financing in 2026.”

“By reducing the growth rate to 6%, NextEra Energy Partners LP distribution rate is now comparable to its peers, and the partnership does not expect to require growth equity until 2027.”

“From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total with continued reliance on equity units to satisfy our equity needs, which have no dilution for the first three years.”

“We expect to transfer roughly $400 million in tax credits in 2023 and expect this amount to grow over the next couple of years to approximately $1.6 billion to $1.8 billion in 2026.”

“From 2021 to 2026, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range, and we continue to expect to grow our dividends per share at roughly 10% per year for at least 2024 off a 2022 base.”

“Overall, we remain on track to achieve our renewable development expectations of roughly 33 gigawatts to 42 gigawatts through 2026.”

“So for ‘23 through ‘24, we are in great shape. We are already within the range as we had expected to be.”

“NextEra Energy Partners remains well positioned to deliver on its 2023 run rate expectations for adjusted EBITDA and cash available for distribution.”

“We remain confident in our total capital plan through 2025, as our cumulative capital investments of approximately $14 billion through June of 2023 are a little ahead of our original timeline.”

“A lot of it is going to depend on, as I said before, these ‘22 projects continuing to come online in 2023 and those customers that had a little bit of fatigue so to speak. We are around those delays coming back to market which we're starting to see and so that will be the wild card. But we feel good about how the rest of the year continues to shape up.”

“NextEra Energy Partners continue to expect run rate contributions for adjusted EBITDA and cash available for distribution and its forecasted portfolio at December 31, 2023 to be in the ranges of $2.2 billion to $2.42 billion and $770 million to $860 million respectively.”

“For 2023, we expect the annualized rate of the fourth quarter 2023 distribution that is payable in February of 2024 to be in a range of $3.64 to $3.74 per common unit.”

“As we previously shared, we expect strong double-digit growth in the second half of the year and adjusted EBITDA and cash available for distribution to support NextEra Energy Partners, LP distribution per unit growth expectations range for the full year 2023.”

“And we continue to expect to grow our dividends per share at roughly 10% per year, through at least 2024, off a 2022 base.”

“Of that total, we anticipate investing approximately $10 billion in new solar generation and approximately $14 billion to $16 billion in transmission and distribution infrastructure.”

“Over the current four year settlement agreement, we continue to expect FPL with a capital investment of between $32 billion to $34 billion.”

“With two and a half years remaining under the current settlement agreement, FPL expects to add roughly 3,100 megawatts of incremental solar through 2025.”

“We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current settlement agreements four year term, which runs through 2025.”

“So we feel like we are really in great position and on track on that build.”

“Our long-term financial expectations remain unchanged, and we will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges. In each year, from 2023 to 2026, while the same time maintaining our strong balance sheet and credit ratings.”

“However, as we previously shared with you, we expect to grow at or near the bottom end of that range.”

“From a base of our fourth quarter 2022 distribution per common unit and an annualized rate of $3.25, we continue to see 12% to 15% growth per year and LP distributions per unit as being a reasonable range of expectations through at least 2026.”

“From 2021 to 2026, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“Panels are now flowing through the ports, really don't see any material delays to any of our projects, so we feel good about that.”

“So we continue to see a very strong renewables development environment.”

“The transaction is expected to close in the second quarter of this year.”

“With the closing of the transaction announced today, NextEnergy Partners expects to be well positioned to meet its year-end 2023 adjusted EBITDA and cash available for distribution run rate expectations.”

“We also continue to expect to achieve our 2023 distribution growth of 12% to 15%.”

“For 2023, we expect the annualized rate of the fourth quarter 2023 distribution that is payable in February 2024 to be in a range of $3.64 to $3.74 per common unit.”

“NextEra Energy Partners continues to expect run rate contributions for adjusted EBITDA and cash available for distributions from its forecasted portfolio at December 31, 2023, to be in the ranges of $2.22 billion to $2.42 billion and $770 million to $860 million respectively.”

“In any event, the potential unit issuance from these buyouts are not expected to exceed an average of three days of total trading volume per quarter, which we expect will make them quite manageable.”

“For the balance of the year, files are now expected to be limited to the remaining 50% of the STX Midstream convertible equity [ph] portfolio financing and 15% of the net renewables to convertible equity portfolio financing with the equity portion of these buyouts requiring common units of approximately $280 million and $130 million respectively.”

“We also continue to expect to grow our dividends per share at roughly 10% per year through at least 2024 off a 2022 base.”

“All our suppliers are expected to meet the criteria established in the Commerce Department's preliminary determination in the 2022 circumvention case by the end of 2023.”

“With more than 1.5 years remaining before the end of 2024, we are now within the 2023 to 2024 development expectations range.”

“Our long-term expectations of underlying usage growth continues to average between zero and approximately negative 0.5% per year.”

“Finally, construction of our green hydrogen pilot at our Okeechobee Clean Energy Center is on track and projected to go into service later this year.”

“Taking all approved adjustments together, we anticipate that FPL's typical 1,000 kilowatt hour residential customer bills will remain well below the projected national average and among the lowest of all Florida utilities.”

“As we've previously discussed, FPL historically utilizes more reserve amortization in the first half of the year, and we expect this trend to continue this year.”

“I do think the hydrogen opportunity is probably more -- not probably, it is definitively more past 2026 than in 2026 for a lot of practical reasons.”

“Obviously, we're now -- we're at the low end of the range for 2023 and 2024 and continue to feel very well positioned to meet the longer-term expectations across the four-year period.”

“Our long-term financial expectations which we extended earlier this year through 2026 remain unchanged. And we will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 to 2026, while at the same time maintaining our strong balance sheet and credit ratings.”

“From a base of our fourth quarter 2022 distribution per common unit at an annualized rate of $3.25, we continue to see 12% to 15% growth per year in LP distributions as being a reasonable range of expectations through at least 2026.”

“The 2023 plan includes roughly 20,000 megawatts of new low-cost solar capacity across our service territory over the next 10 years, which would result in nearly 35% of FPL's forecasted energy delivery in 2032 coming from cost-effective solar generation up significantly from roughly 5% in 2022.”

“We are confident that we can source panels consistent with these guidelines by the end of the two-year waiver period.”

“Year-end 2023 run-rate adjusted EBITDA expectations are $2.22 billion to $2.42 billion and cash available for distribution of $770 million to $860 million, respectively, reflecting calendar year 2024 contributions expected from the forecasted portfolio at year-end 2023.”

“We also continue to expect to grow our dividends per share at roughly 10% per year through at least 2024, off a 2022 base.”

“We anticipate that Energy Resources' adjusted earnings per share contributions from new investments will be much stronger in 2023, when we expect many of these delayed projects will be completed.”

“we anticipate that FPL's typical 1,000 kilowatt hour residential customer bills as of April 2023 will remain well below the projected national average and the projected average for Florida investor-owned utilities.”

“construction on our green hydrogen pilot at the Okeechobee Clean Energy Center remains on schedule as it continues to advance towards its projected commercial operation date later this year.”

“We continue to expect FPL's average annual growth in regulatory capital employed to be roughly 9% over the four-year term of our current rate agreement.”

“For 2023 and 2024, we expect our adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively.”

“we anticipate commissioning another roughly 1,200 megawatts of low-cost solar in 2023, bringing our total solar buildout to roughly 1.7 gigawatts within the first two years of our current rate agreement.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in each of 2023, 2024, 2025 and 2026, while at the same time maintaining our strong balance sheet and credit ratings.”

“We now believe that we will place into service approximately 32,700 to 41,800 megawatts of new renewables and storage projects from 2023 through the end of 2026.”

“From 2021 to 2026, we expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“We now see 12% to 15% per year growth and per unit distributions as a reasonable range of expectations through at least 2026.”

“Last week, we signed a term sheet for approximately 800 megawatts of new solar generation, which we have not included in our backlog, that is expected to reach commercial operations in 2026 and is expected to support a green hydrogen-related facility in development in the Central United States.”

“By incorporating the IRA benefits, we expect the post-2025 new solar capacity in this year's plan will more than double what it was last year.”

“we are currently evaluating repowering investments for roughly 1.3 gigawatts of wind assets owned by NextEra Energy Partners for 2024 through 2026.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectation ranges for 2022 through 2025, while at the same time, maintaining our strong balance sheet and credit ratings.”

“Our long-term financial expectations through 2025 remain unchanged.”

“With the swaps in place, we're in good shape to manage 2023 and 2024 maturities and new debt issuances despite the current interest rate environment.”

“So it's in line with the plans that we laid out in terms of roughly $8.2 billion to $8.5 billion a year over the settlement terms.”

“It's basically where it is at the '22 levels. It varies a little bit but is exactly what we put forward for the plan here for the last two years that we've had going forward.”

“In terms of timing, which I think was the other part of your question, I think we've been very open that we plan to provide a further update on the next call in January on the Q4 call.”

“Combined with its current yield and the expectation of 12% to 15% annual distributions per unit growth through at least 2025, NextEra Energy Partners has the potential to deliver a total after-tax return of approximately 20% annually through this time frame.”

“NextEra Energy Partners continues to expect year-end 2022 run rate adjusted EBITDA and cash available for distribution in the ranges of $1.785 billion to $1.985 billion and $685 million to $775 million, respectively, reflecting calendar year 2023 contributions from the forecasted portfolio at the end of 2022.”

“We expect the annualized rate of the fourth quarter 2022 distribution that is payable in February of 2023 to be in the range of $3.17 to $3.25 per common unit.”

“At the midpoints, NextEra Energy Partners' new year-end 2023 run rate expectation ranges reflect estimated growth in adjusted EBITDA and cash available for distribution of roughly 23% and 12%, respectively, from the comparable year-end 2022 run rate expectations.”

“Consistent with our long-term growth prospects, today, we are also introducing year-end 2023 run rate expectations, which are built upon NextEra Energy Partners' strong existing portfolio and cash flow generation potential and continued ability to access low-cost capital to acquire accretive renewable energy projects.”

“We also continue to expect to grow our dividends per share at a roughly 10% rate per year through at least 2024 off a 2022 base.”

“In addition, for 2021 to 2025, we continue to expect our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“For 2025, we expect to grow 6% to 8% off the 2024 adjusted earnings per share range, which translates to a range of $3.45 to $3.70.”

“For 2023 and 2024, NextEra Energy expects adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively.”

“For 2022, NextEra Energy expects adjusted earnings per share to be in a range of $2.80 to $2.90.”

“In recent years, we've proactively engaged in liability management initiatives, which we expect to yield significant interest cost savings through 2025.”

“Moreover, the acquisition is expected to deliver double-digit returns.”

“In our base case, we expect that the acquired portfolio delivered more than $220 million of adjusted EBITDA at Energy Resources by 2025, which is included in our financial expectations.”

“In the coming years, we expect to invest roughly $400 million net of the investment tax credit benefit of additional capital into the portfolio of projects, primarily to enable production of renewable natural gas.”

“Our development expectations through 2025 are unchanged from what we disclosed at our investor conference in June and reflect a planned renewables and storage build that is, at the midpoint, more than 20% larger than the entire renewables operating portfolio at Energy Resources today.”

“For the full year 2022, FPL continues to target an 11.6% ROE but is allowed to earn at the high end of the revised range, which may occur based on, among other things, warmer-than-expected weather.”

“FPL's capital expenditures were approximately $2 billion in the third quarter, and we continue to expect our full year capital investments to total roughly $8.5 billion.”

“Last month, we filed with the Florida Public Service Commission our estimate that the solar production tax credits in the IRA are expected to save customers nearly $400 million over the course of our current rate agreement.”

“Considering the potential impacts of the IRA, our expectation regarding the overall tax position for NextEra Energy Partners remains largely unchanged, including that it is not expected to pay any meaningful taxes for at least the next 15 years.”

“But irrespective of that, I feel very comfortable with the development expectations that we've laid out”

“I feel very comfortable with the development expectations that we've laid out that even if there's some disruption with a couple of those contracts, I feel very confident in being able to enter into other contracts and continue the development of other projects such that those ranges that we've provided to you and, of course, gave you again today, remain very much in reach.”

“we remain on track to deliver on our best-in-class 12% to 15% annual distribution per unit growth expectations, which we extended through 2025 last month at our investor conference.”

“we also remain confident in our near-term capital plan to deploy approximately $85 billion to $95 billion into new investments from 2022 through 2025.”

“We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectation ranges in 2022, 2023, 2024 and 2025, while at the same time maintaining our strong balance sheet and credit ratings.”

“We remain confident in our long-term development expectations at Energy Resources, which we increased and extended last month. From 2022 through the end of 2025, Energy Resources expects to build roughly 28 to 37 gigawatts of renewables and storage projects.”

“given the high gas price environment, it certainly provides room for us to have a higher PPA price. And that gives us the ability to offset higher interest rate costs and still maintain our margins.”

“We expect the annualized rate of the fourth quarter 2022 distribution that is payable in February of 2023 to be in the range of $3.17 to $3.25 per common unit.”

“NextEra Energy Partners continues to expect year-end 2022 run rate adjusted EBITDA and cash available for distribution in the ranges of $1.785 billion to $1.985 billion and $685 million to $775 million, respectively, reflecting calendar year 2023 contributions from the forecasted portfolio at the end of 2022.”

“We expect both NextEra Energy Partners' unitholders and NextEra Energy shareholders to benefit from the IDR modification.”

“We also continue to expect to grow our dividends per share at a roughly 10% rate per year through at least 2024 off a 2022 base.”

“from 2021 to 2025, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.”

“At our investor conference, we highlighted roughly $400 million in run rate efficiencies identified through project velocity that we expect to be recognized over the next few years.”

“by the end of that period, we expect our suppliers to be making ingots and wafers outside of China.”

“For the full year 2022, we anticipate the majority of our growth in new investments to occur in the fourth quarter.”

“the approximately $900 million project... is expected to generate nearly $350 million in net cost savings for FPL customers, while reducing carbon emissions by roughly 70% compared to the previous Lauderdale plant.”