8-KRegulation FDOther EventsExhibits & Filings

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Dec 30, 2024)

Filed December 30, 2024For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

This 8-K filing from NextEra Energy Inc. (NEE) announces that its wholly owned subsidiary, Florida Power & Light Company (FPL), has formally notified the Florida Public Service Commission (FPSC) of its intent to initiate a base rate proceeding in early 2025. This proceeding will propose a four-year rate plan, commencing in January 2026, to replace the current settlement agreement. FPL anticipates requesting significant annual revenue increases in 2026 and 2027 to support its operations and future investments. Key aspects of the proposed plan include an estimated $1.55 billion annual revenue increase effective January 2026 and a subsequent $930 million increase effective January 2027. FPL also plans to seek authorization for a Solar and Battery Base Rate Adjustment (SoBRA) mechanism to recover costs for new solar and battery projects slated for 2028 and 2029. The company expects to propose an allowed regulatory return on common equity of 11.9 percent. The formal filing is expected around February 28, 2025, which investors should monitor for detailed financial implications.

Key Highlights

  • 1FPL intends to initiate a base rate proceeding in early 2025 to establish a new four-year rate plan beginning January 2026.
  • 2The proposed rate plan aims to replace the current base rate settlement agreement in place since 2022.
  • 3FPL expects to request approximately $1.55 billion in annual revenue increase effective January 2026.
  • 4A subsequent annual revenue increase of approximately $930 million is anticipated effective January 2027.
  • 5FPL plans to propose a Solar and Battery Base Rate Adjustment (SoBRA) mechanism for future renewable projects.
  • 6The company expects to propose an allowed regulatory return on common equity midpoint of 11.9 percent.
  • 7The formal filing to initiate the base rate proceeding is scheduled for on or around February 28, 2025.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors and the public that Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, has officially notified the Florida Public Service Commission (FPSC) of its intent to begin a base rate proceeding. This process will lead to a proposal for new electricity rates.

FPL is proposing a four-year rate plan that would begin in January 2026. The requested revenue increases are planned to be effective in January 2026 and January 2027.

FPL estimates it will request a general base annual revenue requirement increase of approximately $1.55 billion effective January 2026 and a subsequent annual increase of approximately $930 million effective January 2027. These are preliminary estimates and subject to FPSC review.

The SoBRA (Solar and Battery Base Rate Adjustment) mechanism is a proposed regulatory tool that FPL intends to request authority for. Its purpose is to allow FPL, subject to FPSC review, to recover the costs associated with building and operating additional solar and battery projects planned for 2028 and 2029.