The paragraph introduces the NextEra Energy Fourth Quarter and Full Year 2024 Earnings Conference Call, noting that it's in a listen-only mode initially but includes a question session after the presentation. The event is recorded, and Mark Eidelman, Director of Investor Relations, introduces key executives like John Ketchum, Brian Bolster, Armando Pimentel, Rebecca Kujawa, and Mark Hickson. It mentions that forward-looking statements will be made during the call, which are based on current assumptions and are subject to risks and uncertainties, with potential for actual outcomes to differ materially from these statements. The paragraph also notes that the presentation will include non-GAAP financial measures and refers to additional information and risk factors available on their website and in their latest SEC filings.

The paragraph highlights NextEra Energy's strong operational and financial performance in 2024, noting an 8% increase in adjusted earnings per share from 2023 and a compound annual growth rate in adjusted EPS of over 10% since 2021. The company's consistent success is attributed to its team's execution and its strategic positioning with two robust businesses: Florida Power & Light (FPL) and Energy Resources, a leader in renewables and storage. NextEra Energy is a major player in the U.S. energy sector, operating significant natural gas, nuclear, and renewable energy infrastructure, and has invested over $150 billion in energy infrastructure in the last decade.

The paragraph outlines FPL's plan to invest $120 billion over the next four years to expand its fleet to 121 gigawatts. FPL and Energy Resources have successfully provided value to customers and shareholders, placing 8.7 gigawatts of renewables and storage into service in 2024. As FPL nears its 100th anniversary, it remains committed to smart investments, cost leadership, reliability, and low customer bills. The company's enhancements to its grid, including storm resilience and smart technology, have reduced outages significantly. Investments in low-cost solar and battery storage continue to reduce fuel costs, allowing FPL to maintain bills 40% below the national average.

The paragraph highlights FPL's achievements and future plans in enhancing its energy services. In the past year, the company added over 2.2 gigawatts of solar power and plans to add 15 gigawatts by 2033. These efforts, along with modernization initiatives, have saved customers over $16 billion since 2001. FPL focuses on operational efficiency, with non-fuel O&M costs significantly lower than the national average, saving customers over $3 billion annually. Innovation, such as remote operation of its fossil fleet from a central control center, plays a critical role in reducing costs and providing excellent service. FPL has filed for a rate proceeding for 2026 with the Florida Public Service Commission, leveraging multi-year rate plans to keep customer bills low and maintain financial strength. The company emphasizes its role in supporting Florida's growth with reliable, low-cost energy solutions.

The paragraph discusses strategies to support Florida's expected population growth, projected to surpass the national average by 2030, through investments in energy infrastructure. Energy Resources had a record-breaking year in adding more than 12 gigawatts to its renewables and storage backlog, exceeding previous achievements and reflecting strong demand. This includes substantial solar and battery storage projects, with 3.4 gigawatts deployed and 7.2 gigawatts in backlog. The company's existing sites with vast storage interconnection capacity provide a competitive edge for rapid deployment. It also serves data center customers with a total renewables portfolio of 8.3 gigawatts. The increasing power demand spans all sectors, including utilities and municipalities, as indicated by the 12 gigawatts of new backlog additions.

The paragraph discusses the growing demand for power and the need to quickly increase generation capacity, emphasizing the role of renewable energy. It highlights a company's achievements in expanding its renewables portfolio to 75 gigawatts by 2027, surpassing the installed capacity of most countries. The company has made significant agreements with major corporations to develop up to 15 gigawatts of renewables and storage projects by 2030, showcasing its market leadership. Additionally, it announces a new partnership with GE Vernova to develop natural gas-powered generation solutions, aiming to offer a comprehensive energy solution to meet customer needs.

The paragraph discusses a collaboration between NextEra Energy and GE Vernova to support energy infrastructure by combining renewable energy with gas-fired generation. The partnership aims to enhance power capacity, particularly for data centers and industrial clients, while identifying strategic grid locations for development over the next four years. GE Vernova will contribute its gas generation technology and financial expertise, while NextEra Energy will focus on providing integrated renewable and gas solutions. The agreement underscores the importance of expanding the U.S. power infrastructure to meet the growing energy demand and aligns with the current administration's energy agenda.

NextEra Energy, a major American energy producer, supports a diverse energy strategy to meet rising electricity demand and prevent increasing power prices and economic slowdown. They advocate for renewables and storage solutions, which are ready to lower costs, while gas-fired generation will not be widely available until 2030 and is increasingly expensive. Nuclear energy is seen as a long-term solution, focusing on recommissioning existing plants like the Duane Arnold facility in Iowa. The company has initiated regulatory steps to potentially restart this plant by the end of 2028 and is also considering alternatives like Small Modular Reactors (SMRs). They are engaging with various stakeholders and have received positive feedback.

The paragraph discusses the challenges and strategies for energy generation in the coming decade, highlighting the necessity of renewables and energy storage due to the slow pace of nuclear development. It emphasizes the importance of a diverse energy mix, including natural gas and, to a lesser extent, nuclear power, to meet current demand. The focus is on providing reliable and cost-effective energy, leveraging significant experience in the energy sector. The text shifts to financial details about Florida Power & Light (FPL) in 2024, where adjusted earnings per share rose by $0.12, driven by a 10% growth in regulatory capital, with an expected consistent growth rate through 2025. FPL's 2024 return on equity is around 11.4%, and it utilized $328 million of reserve amortization, ending the year with a balance of $895 million.

In the fourth quarter, FPL's capital expenditures reached approximately $1.8 billion, totaling around $8.2 billion for the year. Florida's economy and population are growing rapidly, with the state's GDP increasing by 7% to $1.7 trillion. FPL's retail sales rose by 1.1% in Q4 2024, due to customer growth, adding nearly 119,000 new customers and exceeding 6 million total customer accounts. For the full year 2024, retail sales increased by 1.9% from strong customer growth. FPL plans to propose a base rate change for 2026-2029 to give customers cost visibility and intends to invest $36 billion by the end of 2025 with more investments expected post-2026. The investment aims to enhance grid reliability and efficiency, with periodic rate adjustments needed for recovery of these investments.

Florida Power & Light (FPL) is planning a proposal that includes base rate adjustments of $1.55 billion starting in 2026 and $930 million in 2027. The proposal also seeks support for low-cost generation and capacity projects, continuing the solar and battery base rate adjustment mechanism. FPL aims for an 11.9% return on equity (ROE) with a 1% fluctuation range, reflecting current higher interest rates and market conditions. The proposal maintains FPL's historic equity ratio to ensure access to capital through 2029. FPL anticipates average annual residential customer bill increases of about 2.5% from 2025 to 2029 but projects its bills will remain below the national average.

The paragraph discusses a proposal by FPL that aims to reduce customer bills by nearly 21% in real terms by January 2026, despite planned base rate increases. FPL intends to make a formal filing with testimony and data in February and anticipates a final decision by the commission in the fourth quarter for new rates to take effect in January 2026. The company is open to a fair settlement agreement and aims for a thorough review of its case to continue its successful strategy. Additionally, Energy Resources reported a 13% year-over-year growth in adjusted earnings, with increased contributions from new investments in renewables and storage, slight gains from existing clean energy assets, and a decrease in contributions from its gas infrastructure business.

The paragraph discusses the financial performance and outlook of NextEra Energy. It notes that a combination of factors, including higher depletion expense, non-recurring items, and the sale of a Texas pipeline portfolio, led to lower earnings in a particular quarter. Contributions have remained stable, and a previous decrease in earnings was attributed to normalization in the customer supply and trading business and other factors, including increased interest costs. Energy Resources reported its best year for origination for the third consecutive year, adding over 12 gigawatts of new renewable and battery storage projects, contributing to a total backlog of over 25 gigawatts. This backlog provides strong growth visibility. Overall, the Corporate and Other segment's adjusted earnings per share decreased by $0.01 year-over-year.

The paragraph discusses NextEra Energy's financial performance and projections. The company achieved a 17% growth in operating cash flow for 2024, surpassing adjusted earnings. It has $28.5 billion in interest rate hedges to protect project economics and minimize refinancing costs. A 50 basis point increase in the yield curve would have a negligible impact on adjusted EPS expectations for 2025-2027. Despite the current interest rate environment, NextEra's funding plans for 2024-2027 remain unchanged, with a strong track record of meeting or exceeding financial expectations over the past 15 years. The company anticipates continued growth in cash flow and dividends per share through at least 2026. The paragraph ends with an invitation for questions.

The paragraph describes a discussion between Steve Fleishman from Wolfe Research and John Ketchum regarding a new framework agreement between NextEra and GE Vernova for gas-fired generation projects. NextEra is excited about this partnership due to their extensive experience in gas-fired generation and a long-standing relationship with GE. The projects under this agreement will target large load customers, integrating gas-fired generation with renewable battery storage solutions. Ownership of these projects will be a 50-50 joint venture, focusing on long-term contracted assets, but they may also consider build-on-transfer projects in collaboration with the right customer.

The paragraph discusses the urgency of increasing power generation in the U.S. under the new administration's energy policies. John W. Ketchum supports the executive orders aimed at achieving American energy dominance, emphasizing the need for a diverse mix of energy sources including gas, nuclear, renewables, and storage to meet high and growing power demand. He highlights the varying timelines for developing different energy projects, noting that renewables such as wind and solar can be implemented relatively quickly, whereas gas-fired generation requires more time due to site and infrastructure development.

The paragraph discusses the urgent need for increased power generation as customers and utilities are already relying on new renewable energy projects, particularly wind, to meet current power demands. It highlights the lack of reliability due to existing power shortages and the importance of onshore wind projects on private land due to easier permitting processes. The speaker expresses confidence in overcoming potential challenges and emphasizes support for domestic job creation and low-cost energy by the administration. Additionally, there is a focus on advocating in Washington for the Inflation Reduction Act (IRA) to address immediate power needs.

The paragraph discusses the key role of renewable energy, supported by gas and future nuclear power, in preventing a power crisis. It emphasizes the economic benefits and job creation associated with renewable infrastructure investment, particularly in Republican states. NextEra plans to invest $120 billion over four years, with 80% going to these states. The company is communicating these benefits in Washington. Additionally, there is a discussion about the timeline for nuclear power between 2027 and 2030, specifically regarding the Duane Arnold project, including potential expansion and cost estimates pending government support.

The paragraph discusses NextEra Energy's recent licensing filing with the NRC to recommission nuclear facilities and the ongoing customer negotiations related to these activities. The focus is on recommissioning the Palisades and Duane Arnold facilities over the next few years, while also planning for the future development of small modular reactors, which face uncertainties and are considered a solution for the latter part of the next decade. John Ketchum mentions that the Duane Arnold plant is in good condition.

The paragraph discusses the challenges and opportunities in developing new gas facilities. While building cooling towers is straightforward, the broader process of establishing a gas facility involves finding a suitable site, acquiring permits, securing gas supply, and overcoming equipment limitations. John Ketchum highlights the increased demand and costs associated with gas turbines, both domestically and internationally, as well as a shortage of EPC (Engineering, Procurement, and Construction) labor, which has significantly raised costs. Despite these challenges, there's a promising opportunity for growth in this sector for NextEra, especially as supply chain issues begin to ease.

The paragraph discusses the rising cost of building facilities, specifically in terms of dollar per kilowatt, which has tripled. It emphasizes the importance of considering both time and money when proposing economic solutions for customers, especially for projects aimed at the 2030 and beyond timeframe. The paragraph highlights regional differences in building infrastructure, noting that ERCOT is quicker to build in than other regions like PJM, where legal challenges make construction difficult. The speaker mentions potential reforms by the new administration to ease such processes, though litigation might still occur. Ultimately, they view these projects as more feasible later in the decade. Following this, Julien Dumoulin-Smith from Jefferies asks about strategic entry into the gas business, possibly through acquisitions, to enhance origination prospects.

John Ketchum addresses questions about their business strategy, particularly regarding the gas and renewable sectors. He emphasizes that their company, being a significant development entity with established infrastructure and capabilities, doesn't need acquisitions to expand its gas business. He avoids detailed discussion on XPLR until an upcoming call but reassures that their capital recycling and equity plans remain unchanged, affirming confidence in their current strategy without impacting equity needs.

The paragraph is a conversation during a financial update call discussing Florida Power & Light's (FPL) customer growth and financial outlook. Nick Campanella from Barclays inquires about FPL's customer growth and financial mechanisms. John Ketchum responds, noting positive growth trends since the pandemic but expects growth to moderate slightly over the next four years. He also mentions plans for substantial capital investments of over $36 billion in the '26-'29 period, surpassing the current four-year plan ending in 2025. More details will be provided in an upcoming rate case filing expected by the end of February.

The paragraph discusses the company's financial position and outlook regarding its reserve mechanism and future expectations. They currently have approximately $800 million in reserves after using $400 million in 2024. The company is cautious about potential risks in 2025 but anticipates a slight increase in their return on equity (ROE). They are preparing to present their case to regulators, highlighting their customer-centric actions. Nick Campanella inquires about the inclusion of XPLR's earnings and EBITDA in their outlook, to which Brian Bolster responds that the accounting remains unchanged, with further details to be discussed soon. Carly Davenport from Goldman Sachs asks about the impact of renewable projects on customer conversations and potential policy changes.

In the paragraph, John Ketchum and Rebecca Kujawa discuss the importance of ensuring that renewable energy projects are completed on time for utilities, co-ops, municipalities, and commercial and industrial customers. These entities have already made investments and need the energy from these projects to avoid disruptions. Delays would adversely affect their ability to provide power or increase costs. Customers are primarily concerned with the timely completion and cost efficiency of these projects. Carly Davenport then asks about the company's strategy to manage interest rate exposure, noting some changes in interest rate sensitivities.

The paragraph discusses a conversation about financial strategies and customer interactions at a company, touching on interest rate swaps and their impact on earnings per share (EPS). They have $32 billion in interest rate swaps with an average coupon of 3.9%, which they believe effectively manages interest rate risk. The discussion then shifts to customer engagement, specifically with hyperscalers, regarding renewable energy and openness to gas. The focus is on meeting customer commitments with speed, available resources, cost efficiency, and high confidence, aligning with corporate and state goals.

The paragraph discusses the increasing demand for natural gas to complement renewable energy sources like wind and solar. This demand surge is part of a broader industry transformation over the past 15 to 18 months. Developing new energy resources can take three to five years, highlighting the importance of having diverse supply options, including small modular reactors, ready by the 2030s. The conversation also touches on behind-the-meter gas solutions, which present challenges in ensuring reliable energy supply without grid support. Mega-scale projects might address some of these issues, and ongoing discussions with customers are evident.

The paragraph discusses the value of the existing electric grid in Florida, emphasizing the need for various power supply solutions to meet different customer demands. It mentions the importance of providing options now and hints at a forthcoming discussion on how XPLR fits into NEE's strategy. The conversation on XPLR is scheduled for a later date. The session concludes with the end of the question-and-answer segment and the conference call.

This summary was generated with AI and may contain some inaccuracies.