NextEra Energy(US:NEE)2026-02-13 21:19Generation Capacity and Resources - NEE has approximately 80 gigawatts of net generation and storage capacity, primarily from natural gas, wind, solar, and nuclear sources as of December 31, 2025[16]. - FPL's net generating capacity is 35,963 MW, with approximately 93,000 circuit miles of transmission and distribution lines[20]. - NEER has a total net generating capacity of approximately 37,505 MW as of December 31, 2025, making it one of the largest wholesale generators in the U.S.[59]. - NEER's generation assets include approximately 12,794 MW of solar facilities and 27,855 MW of wind facilities as of December 31, 2025[78]. - NEER has a net generating capacity of approximately 1,584 MW from natural gas generation facilities as of December 31, 2025[82]. - NEER added approximately 1,799 MW of battery storage capacity during 2025, bringing total net ownership interests in battery storage to approximately 5,177 MW across 18 states in the U.S. and 1 province in Canada[83]. - FPL plans to expand its SolarTogether program by constructing an additional 1,788 MW of solar generation from 2022 through 2025[55]. Regulatory Framework and Financials - FPL's regulatory framework includes oversight from the FPSC, FERC, and NRC, impacting rates and operational standards[44]. - FPL's base rates, effective from January 2026 through December 2029, are designed to recover costs and provide a reasonable return on invested capital[47]. - FPL's authorized regulatory ROE is 10.95%, with a range of 9.95% to 11.95%, allowing for retail base rate relief if the earned ROE falls below 9.95%[49]. - FPL is authorized to implement a rate stabilization mechanism (RSM) up to approximately $1.5 billion after tax, subject to conditions[49]. - FPL's operating revenues from wholesale and industrial electric customers represented approximately 5% of total operating revenues in 2025[29]. - FPL's base rate increases in 2024 and 2025 will be associated with the addition of 894 MW of new solar generation[55]. Environmental and Regulatory Risks - Compliance with environmental laws may result in significant capital expenditures and increased operating costs, affecting overall profitability[136]. - New greenhouse gas emission limits could impose additional costs on NEE and FPL, potentially affecting their financial performance[140]. - Regulatory compliance failures could lead to substantial monetary penalties and increased operational costs for NEE and FPL[141]. - The evolving regulatory landscape may require additional approvals, impacting the timeline and costs of energy projects[134]. - Political and economic factors may adversely affect regulatory decisions, potentially leading to delays or cancellations of planned projects[128]. - Changes in governmental incentives for clean energy could hinder the development and financing of new projects, impacting NEE and FPL's business[130]. Operational and Market Risks - Weather conditions and severe weather events can significantly impact demand for electricity and natural gas, affecting revenue and operational costs[156]. - Changes in weather can affect electricity production at NEER's wind and solar facilities, leading to variable financial results[159]. - Cyberattacks and geopolitical factors pose risks to NEE's and FPL's operations and financial condition[160]. - The use of AI technologies presents risks that could adversely affect NEE's and FPL's business and operational efficiency[155]. - Disruptions in power transmission or natural gas operations could limit NEE and FPL's ability to sell and deliver energy, materially affecting their business[171]. - Employee strikes or work stoppages could disrupt operations, leading to revenue loss and increased personnel costs due to inflation and competitive pressures[185]. Financial Performance and Market Conditions - NEE's revenue is primarily derived from the output of its generation facilities, with a focus on providing structured and customized power and fuel products[109]. - NEE's common stock price is subject to fluctuations due to disruptions in credit and capital markets, which may adversely affect its market price[210]. - A prolonged period of low natural gas and oil prices could lead to delays or cancellations of production projects, negatively affecting NEE's business and financial performance[164]. - NEE's defined benefit pension plan is sensitive to market performance and interest rates, which could increase funding requirements and adversely affect financial condition[201][202]. Cybersecurity Measures - NEE operates a comprehensive cybersecurity risk management program to protect its information systems and operations from cybersecurity threats[212]. - The cybersecurity program includes controls to mitigate risks and is regularly assessed by outside experts for effectiveness[213]. - NEE conducts periodic cybersecurity drills and participates in industry forums to enhance its incident preparedness capabilities[214]. - Third parties assess NEE's cybersecurity protocols to ensure alignment with U.S. Department of Energy standards and regulatory requirements[215]. - NEE has implemented a cybersecurity training program to educate employees on risks and data protection[215]. Competition and Market Position - FPL faces limited competition in Florida's retail electricity market, but any changes in regulations could adversely affect its business[132]. - NEE faces significant competition for acquisition opportunities due to the consolidation of the energy industry, which may hinder its ability to identify and integrate acquisitions successfully[186][187]. - NEE and FPL's nuclear generation facilities are subject to environmental, health, and financial risks, which could lead to increased costs and capital expenditures[188].