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Released April 24, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) continues with several solar, wind and natural gas-fired power projects in Florida. On Friday, the company reported guidance on earnings and capital projects, highlighting strong continued growth in the renewables sector. Industrial Info is tracking $13.5 billion in projects involving NextEra Energy.
In a conference call regarding the first-quarter results, Chief Financial Officer John Ketchum spoke about the company's main subsidiary, Florida Power & Light (FPL) (Juno Beach). "FPL's capital expenditures were approximately $1.7 billion for the quarter, and we expect our full-year capital investments to be between $5.0 and $5.5 billion," said Ketchum.
"During the first quarter, FPL selected the sites for the initial projects being developed under the Solar Base Rate Adjustment, or SoBRA, mechanism of the base rate settlement agreement. The approximately 600 megawatts (MW) of 2017 and 2018 solar is comprised of eight 74.5-megawatt sites, which are expected to commence construction this spring, with commercial operation expected for half of the sites by year-end 2017." Under the SoBra plan, FPL is permitted to recover up to 300 MW of solar project costs per year through 2020 through rates upon commercial operation. For more information, on the eight solar plants proposed by FPL, see April 4, 2017, article - FPL Awards EPC Contracts Totaling $900 Million to Build 596 Megawatts of New Solar. "We continue to develop the sites for the approximately 600 MW of solar capacity planned for 2019 and 2020 under the SoBRA, and will work to advance the additional 900 MW of solar that is included in our Ten-Year Site Plan over the next several years," said Ketchum.
"As part of the new Ten-Year Site Plan, FPL also announced its intention to further modernize the Lauderdale Plant in Dania Beach, Florida, with a new, approximately 1,200-megawatt, high-efficiency natural gas plant that would begin operation by mid-2022. This project, the Dania Beach Clean Energy Center, will help FPL maintain its best-in-class rank among major U.S. utilities for having the lowest operating and maintenance expenses measured on a cost per kilowatt-hour of retail sales," said Ketchum. The Dania Beach Clean Energy Center project has an estimated total investment value of $880 million and could begin construction in early 2020. The project remains in the early planning stages. For more information, see Industrial Info's project report.
The company remains on track to continue its growth in renewables and natural gas build-out. "We anticipate that improved wind and solar economics and low natural gas prices will continue to lead to additional retirements of coal, nuclear and less fuel-efficient oil- and gas-fired generation units, creating significant opportunities for renewables growth going forward," said Ketchum.
One aspect of the renewable business that the company is not keen on is offshore wind. When questioned about the prospects of NextEra entering the offshore wind, Chief Executive Officer Jim Robo called offshore "bad economics for customers," comparing offshore wind financial costs as being more similar to new nuclear builds than onshore wind projects. "We've been very proud that we've done good economic renewables for customers," said Robo, adding that onshore wind and solar projects were about a third of the cost of offshore wind projects. "To say that were not fans would be an understatement...We certainly wouldn't do it; we think it's too risky."
The company reported first-quarter 2017 net earnings of $820 million, compared to $732 million in first-quarter 2016.
Among NextEra's largest non-renewable energy projects being tracked by Industrial Info is the Okeechobee Clean Energy Center, which was reported as being on time and on budget. The project involves constructing a 1,600-MW combined-cycle power plant in Okeechobee, Florida. Zachry Industrial Services Group (San Antonio, Texas) is acting as engineering, procurement and construction firm on the project, which kicked off earlier this year and is expected to be completed in summer 2019. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In a conference call regarding the first-quarter results, Chief Financial Officer John Ketchum spoke about the company's main subsidiary, Florida Power & Light (FPL) (Juno Beach). "FPL's capital expenditures were approximately $1.7 billion for the quarter, and we expect our full-year capital investments to be between $5.0 and $5.5 billion," said Ketchum.
"During the first quarter, FPL selected the sites for the initial projects being developed under the Solar Base Rate Adjustment, or SoBRA, mechanism of the base rate settlement agreement. The approximately 600 megawatts (MW) of 2017 and 2018 solar is comprised of eight 74.5-megawatt sites, which are expected to commence construction this spring, with commercial operation expected for half of the sites by year-end 2017." Under the SoBra plan, FPL is permitted to recover up to 300 MW of solar project costs per year through 2020 through rates upon commercial operation. For more information, on the eight solar plants proposed by FPL, see April 4, 2017, article - FPL Awards EPC Contracts Totaling $900 Million to Build 596 Megawatts of New Solar. "We continue to develop the sites for the approximately 600 MW of solar capacity planned for 2019 and 2020 under the SoBRA, and will work to advance the additional 900 MW of solar that is included in our Ten-Year Site Plan over the next several years," said Ketchum.
"As part of the new Ten-Year Site Plan, FPL also announced its intention to further modernize the Lauderdale Plant in Dania Beach, Florida, with a new, approximately 1,200-megawatt, high-efficiency natural gas plant that would begin operation by mid-2022. This project, the Dania Beach Clean Energy Center, will help FPL maintain its best-in-class rank among major U.S. utilities for having the lowest operating and maintenance expenses measured on a cost per kilowatt-hour of retail sales," said Ketchum. The Dania Beach Clean Energy Center project has an estimated total investment value of $880 million and could begin construction in early 2020. The project remains in the early planning stages. For more information, see Industrial Info's project report.
The company remains on track to continue its growth in renewables and natural gas build-out. "We anticipate that improved wind and solar economics and low natural gas prices will continue to lead to additional retirements of coal, nuclear and less fuel-efficient oil- and gas-fired generation units, creating significant opportunities for renewables growth going forward," said Ketchum.
One aspect of the renewable business that the company is not keen on is offshore wind. When questioned about the prospects of NextEra entering the offshore wind, Chief Executive Officer Jim Robo called offshore "bad economics for customers," comparing offshore wind financial costs as being more similar to new nuclear builds than onshore wind projects. "We've been very proud that we've done good economic renewables for customers," said Robo, adding that onshore wind and solar projects were about a third of the cost of offshore wind projects. "To say that were not fans would be an understatement...We certainly wouldn't do it; we think it's too risky."
The company reported first-quarter 2017 net earnings of $820 million, compared to $732 million in first-quarter 2016.
Among NextEra's largest non-renewable energy projects being tracked by Industrial Info is the Okeechobee Clean Energy Center, which was reported as being on time and on budget. The project involves constructing a 1,600-MW combined-cycle power plant in Okeechobee, Florida. Zachry Industrial Services Group (San Antonio, Texas) is acting as engineering, procurement and construction firm on the project, which kicked off earlier this year and is expected to be completed in summer 2019. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
