NextEra Energy(US:NEE)2025-02-14 19:23Internal Control and Financial Reporting - NextEra Energy, Inc. (NEE) and Florida Power & Light Company (FPL) reported effective internal control over financial reporting as of December 31, 2024[330]. - NEE and FPL's consolidated financial statements present a fair view of their financial position as of December 31, 2024, in accordance with GAAP[340]. - The management assessed the internal control effectiveness based on the criteria set forth by COSO, indicating reasonable assurance of safeguarding assets[330]. - NEE's and FPL's independent auditors expressed unqualified opinions on the financial statements for the year ended December 31, 2024[341]. - The overall system of internal accounting control is designed to prevent or detect material errors or irregularities in financial reporting[327]. - NEE's management believes that the internal control over financial reporting was effective as of December 31, 2024[330]. - The Audit Committee, comprised entirely of independent directors, oversees financial reporting and accounting practices[329]. Financial Performance - NEE's operating revenues for the year ended December 31, 2024, were $24,753 million, a decrease of 12.1% from $28,114 million in 2023[353]. - Operating income for 2024 was $7,479 million, down 26.9% from $10,237 million in 2023[353]. - Net income attributable to NEE for 2024 was $6,946 million, a decrease of 5.0% compared to $7,310 million in 2023[353]. - Basic earnings per share attributable to NEE decreased to $3.38 in 2024 from $3.61 in 2023, reflecting a decline of 6.4%[353]. - Total operating expenses for 2024 were $17,626 million, a slight decrease of 3.6% from $18,282 million in 2023[353]. - Comprehensive income attributable to NEE for 2024 was $6,973 million, down from $7,375 million in 2023[356]. - Net income for 2024 was reported at $5.698 billion, a decrease of 9.3% from $6.282 billion in 2023[361]. - Net income for 2024 was $4,543 million, slightly down from $4,552 million in 2023, reflecting a decrease of 0.2%[370]. Assets and Liabilities - Total assets increased to $190.144 billion in 2024, up from $177.489 billion in 2023, representing a growth of approximately 7.4%[359]. - Total current liabilities decreased to $25.355 billion in 2024, down from $27.963 billion in 2023, a reduction of approximately 9.3%[359]. - Long-term debt increased to $72.385 billion in 2024, up from $61.405 billion in 2023, reflecting a rise of about 18%[359]. - Total common shareholders' equity grew to $50.101 billion in 2024, compared to $47.468 billion in 2023, an increase of 5.5%[359]. - Total assets increased to $98,141 million in 2024, up from $91,469 million in 2023, representing a growth of 7.9%[373]. - Long-term debt rose to $25,026 million in 2024, compared to $23,609 million in 2023, indicating an increase of 6.0%[373]. - Retained earnings increased to $14,835 million in 2024, up from $13,992 million in 2023, reflecting a growth of 6.0%[373]. Cash Flow and Investments - Cash provided by operating activities rose to $13.260 billion in 2024, compared to $11.301 billion in 2023, marking an increase of 17.3%[361]. - Net cash used in investing activities was $22.264 billion in 2024, slightly lower than $23.467 billion in 2023, indicating a decrease of 5.1%[361]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $1.402 billion at the end of 2024, down from $3.420 billion at the end of 2023[361]. - Cash and cash equivalents decreased to $32 million in 2024 from $57 million in 2023, a decline of 43.9%[373]. - NEE's restricted cash at December 31, 2024, was approximately $159 million, compared to $730 million at December 31, 2023[423]. Dividends and Shareholder Returns - Dividends on common stock increased to $4.235 billion in 2024, compared to $3.782 billion in 2023, an increase of 12%[361]. - Dividends per share for 2024 were $2.06, compared to $1.87 in 2023, marking an increase of 10.2%[374]. - Dividends to NEE decreased to $3,700 million in 2024 from $4,545 million in 2023[379]. Regulatory and Rate Adjustments - FPL's accounting for rate regulation impacts multiple financial statement line items, including operating revenues and regulatory assets[348]. - The Florida Public Service Commission (FPSC) has the authority to disallow recovery of costs deemed excessive, which could affect future financial statements[348]. - FPL established new retail base rates resulting in annualized retail base revenue increases of $692 million starting January 1, 2022, and $560 million starting January 1, 2023[393]. - FPL plans to request a general base revenue requirement increase of approximately $1.55 billion effective January 2026 and an additional increase of approximately $930 million effective January 2027[396]. Capital Expenditures and Development Costs - Capital expenditures of FPL were $7.992 billion in 2024, down from $9.302 billion in 2023, a decrease of 14.1%[361]. - At December 31, 2024, NEER's capitalized development costs totaled approximately $1.6 billion, up from $1.5 billion in 2023[405]. Decommissioning and Asset Retirement Obligations - FPL's estimated costs for decommissioning its four nuclear units are approximately $9.6 billion, or $2.5 billion in 2024 dollars[413]. - NEER's Asset Retirement Obligations (ARO) were approximately $1.4 billion and $1.3 billion for 2024 and 2023, respectively[416]. - NEER's estimated ultimate cost of decommissioning its nuclear plants is approximately $9.8 billion, or $2.2 billion expressed in 2024 dollars[416]. Derivative Instruments and Risk Management - NEE and FPL utilize derivative instruments to manage risks associated with fuel and electricity purchases, with changes in fair value recognized in operating revenues for NEER's non-rate regulated operations[472]. - NEE employs risk management procedures to optimize the value of its power generation and natural gas and oil production assets, utilizing derivative instruments to hedge against fluctuating commodity prices[473]. - As of December 31, 2024, total derivative assets amounted to $2,653 million, a decrease from $3,520 million in 2023, reflecting a decline of approximately 24.6%[490]. - Total derivative liabilities were reported at $3,081 million for 2024, compared to $3,586 million in 2023, indicating a reduction of about 14.0%[490]. - NEE recorded total gains from derivative instruments of $1.374 billion in 2024, compared to $2.222 billion in 2023, with commodity contracts contributing $97 million in 2024[500]. Sales and Gains from Asset Dispositions - In 2023, FPL sold its Florida City Gas business for cash proceeds of approximately $924 million, resulting in a gain of approximately $406 million[458]. - In September 2024, NEE sold a 15% economic interest in three natural gas pipeline facilities for total cash proceeds of approximately $101 million, recording a gain of approximately $120 million[459]. - NEE sold a 65% economic interest in a joint venture of renewable assets for cash proceeds of approximately $900 million, with a gain of approximately $103 million recorded[460]. Tax and Regulatory Assets - NEE recorded a net regulatory liability of $2,916 million as of December 31, 2024, compared to $3,195 million in 2023, which is being amortized over the estimated lives of the related assets or liabilities[445]. - FPL's accumulated deferred investment tax credits (ITCs) were approximately $966 million and $997 million as of December 31, 2024 and 2023, respectively[448]. - NEE recognized proceeds from the sales of renewable energy tax credits of approximately $1,304 million in 2024, significantly up from $370 million in 2023[448].