NEE - Earnings call transcript Q1 2020

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Operator

Good morning everyone and welcome to the NextEra Energy Inc. and NextEra Energy Partners LP earnings conference call. All participants will be in listen-only mode. [Operator Instructions] Please also note today’s event is being recorded.

I would now like to turn the conference call over to Matt Roskot, Director of Investor Relations. ahead. go Please

Matt Roskot

Good our Grant. for and you thank Energy Thank quarter morning XXXX joining Partners. first NextEra call combined for and you, Energy everyone earnings NextEra conference

Energy Chairman me Executive NextEra and Energy; With Officer Kujawa, President NextEra also of Officer Vice Partners, of Energy Chief Executive President are well Resources; President and Company. officers Energy; Energy, of morning President of whom Jim John Executive Rebecca Chief Officer NextEra Ketchum, Officer of Power Silagy, this Mark Eric Executive NextEra are Executive NextEra of as all as Financial Vice of and Chief Robo, and & Hickson, Chief and Florida Light

Rebecca for review first provide results. our some a remarks quarter will then opening to turn will of Jim over and the call

will then available be your to questions. executive Our team answer

forward-looking do reports We Securities on undertake accompanying which this based incorrect any comments to section could filings of this factors statements our the in will the our not to current are discussed found or call, other statements and on forward-looking release, presentation, expectations differ uncertainties. making be statements. subject be during any news can and and assumptions the and are latest which results our We key or earnings the Actual from any nexteraenergy.com Risk conference of risks with assumptions, nexteraenergypartners.com. Exchange Commission, in call in of Factors in made because during forward-looking each update websites, our materially of today’s and if duty

to non-GAAP references measures. also presentation includes Today’s financial

presentation the contained of and financial information closest historical refer today’s non-GAAP to You in information the to the reconciliations slides measure. GAAP measures definitional should for accompanying

over I to that, Jim. the call turn With will

James Robo

Matt, Thanks good morning everyone. and

to to deepest of continuing the delivery facing those clear doing it reliable the is by uninterrupted go to daily responders critical been world, can and personally to deliver the so its laser our I electricity The governments and our we begin, need, team and and remain the extent to take greatest impacts first COVID-XX part who those has during before on on operate can from been times. focused spread resolutely Never the businesses the devastating affordable want and by can world their ensuring extend customers sympathies can help more are these to our possible, in where affected all have continue challenging about focused a lives moment to continue pandemic. power. I to function, possible Before how is country virus, our

suspended FPL this commitment have have their have As continued customers access face disconnections of part utilities the Gulf pandemic thing, circumstances. taken of has the NextEra to the power, our state we created. Energy’s to economic at right Both steps both emergency of to and do that core help regardless to challenges during ensure Power electric customers

fuel bill costs. XX% Gulf next the respectively as of lower flow-back accelerated and and Additionally, typical an XX% Power decrease will FPL customers receive one-time a approximately of residential month

million funds companies also have assistance critical of The $X vulnerable to NextEra Energy more the and the than to employees committed community. support provide members most emergency

in economy that support ever, steps time these pandemic and continue rapid difficult generally. unsettling this will Florida from outcome. our to stronger to Florida and customers support do a navigate them and help the remain helping that for than We is hope part this and recovery engaged return Our more we’ll deeply

best, on the NextEra times these challenging a flawless and focus to like a passion Energy shines accountability, that during execution. It culture focused on is the culture through, of leadership, be a

in that weeks. important the the we over industry confirming they how stepped best that of again characteristics these I exemplified have am belief up, culture most team our and once proud our are employees people Energy’s and past my asset. NextEra several have our very the

NextEra the for focus a for our unwavering. effects like execution their stakeholders. on to It economy of work, by in ongoing the to and their our and moment pandemic, times. has delivering other disrupted customers, all employees resource customers been essential take during expectations that is these being Energy challenging on I’d daily our their to to continuing employees hard our because continued lives ability been focus, Despite them of confident never I’ve thank jobs shareholders, to our deliver and more and all do

have To including our on focus generating always that we grid safety the particularly operations, one continue facilities, our most sites we to Florida to the serve and customers, updated was have plan, priority. ensure aggressive critical execution, pandemic protect our our within our instituted number the of measures community is As employees our available which and operate to and our nuclear safely recently taken last our employees. remain year and

daily the FLP We Floridians, steadfastly on critical the and their in that remain plays Power Gulf lives understand meeting commitments. the role and economy focused of and electricity

As challenges the crisis created we are our preparedness fortunate that in planning we and pandemic, face DNA. the by are

unexpected XX company continue have to business, is through customers deliver that the and to allowing disruptions it drills of while unique, for years, to that annual we our time. circumstances nearly challenging preparation had this situation is our to For for our to with this deal are prepare the

board. NextEra months, across execute several Energy has past the continued to the Over

distribution That system a transmission and a limit team since smarter its build more has never ability automation Our invested billion systems FPL to more that allows and and perform $X than typical today. grid in than manage intervention to us human leverage to been reliability high remotely. automation stronger important the XXXX has D The continue with to standards. and line

Power Energy and caused and Operations time. generating facilities has our meaningful the have to been employees, protect at impacts Gulf this not FPL, modified any and all pandemic safety at Resources health at of our the

Lucie during outstanding outages recent In addition St. delivered nuclear reliable ensuring at our refueling plants, performance to the operations at and continued Beach. Point also safe our team and

also the refueling nuclear of entire progress one and Turkey continue to Beach years. fact, shortest was The In at our in outages in outages well. Point Seabrook ongoing fleet past XX the Point the outage

important most core partnerships, our long invested related execute to strategic commitment challenging like have do. we our Over to all in to times excellence significant time, in that we our and time period developing our supply of is ability key of to a particularly support One effort values help chain, during these.

if highlighting to equipment that deliveries with the our the industry over Over have face companies. issues supply relationships position strategic months, should deliver, our long-lasting and past even the remain coming on value deep, several of partners deep our us key These relationships best-in-class confidence months. as continued give leader the others track,

team to construction well, NextEra Energy’s and engineering and perform schedule Our budget. in construction keeping program also on on continues exceptionally the largest history

for quarter our performance reflects performance financial businesses, NextEra EPS increasing adjusted year-over-year. first this operating Energy’s across X% strong with more the all than

continue affordable, and of These clean delivering been efficient decades over portfolio past a highly to strategic smarter several At proposition our now FPL FPL’s stronger are Power, and and grid including focus, clear. investments, reliable, energy FPL the and that turn has our capital customer outstanding of clean on high customers. to smart which energy Gulf me and reliability, low our efficiently be solutions generation allowing we’ve to FPL’s remains more will been outstanding our focus has value to an and bills, value service, continue unchanged. Let never delivering made investments customers. The for

meaningful situation, provide monitor to are Power. our are expansions, continue track The today, we of customer investment solar over coming program FPL While investments largest at we capital to expected including and the on one years. world’s the remains that Gulf making the benefits

investments FPL’s important we help to immunization it best-in-class combined we As making current with by continue to cost our during this that recovery. uncertain smart, FPL reliable move flexibility be mechanism our low The operational toward the cost support provided provide while commitments to time. its will to financial challenges, their meet effectiveness position customers reserve service long-term

Gulf committed objectives previously delivering years. over coming significant to and to shareholder continue outlined that and At value we customer the expect remain we generate have on to Power, the

uncertainty, opportunity unchanged has low to In been believe Power, consumers the impacts Energy ease and businesses through challenges to customers their we vision are our with will for of Similar and lowering renewables generation. remains power cost strategic these economic Gulf times Resources we of never help FPL expect renewable the dealing our by and cost new, market at the when greater. customers

Resources were of skills. Most add to to backlog stay-at-home a first relationships, testament this employees is under conditions despite nearly operated XXXX the for Energy renewables, of Reflecting terrific approximately X,XXX team the of another projects call, since had adding including wind customer our beyond. X,XXX to additions our the last backlog pipeline, negotiated strong remotely for megawatts customer XXX these megawatts development origination, orders. quarter demand megawatts earnings quarter’s our strong ability The and and while

of Also existing projects, of are battery the and our megawatts which added existing will the included value advantage solar enhance to be take of customers. XXX additions all of these in storage sites for ITC backlog projects approximately to almost

the growth in storage With standalone backlog, increasingly we an in its storage own battery right. our business as recent see important significant

world, expected electricity exceed power hours. annual in $X battery of Rhode NextEra by hour for XXXX billion, ever entire that a are power we the would discharges any to investment capacity the believe Island storage and enough Energy’s storage battery in company investments now which gigawatt the total to have be largest four

a that low-cost pairs of low-cost transition storage battery solution. rapid the phase with wind highlights and This to development energy the solar next renewables

continue and nuclear than will existing of costs We coal, firm biogeneration be to near that efficient and the gas of firm middle units. near wind new this decade, oil the operating solar new incentives, by expect less without and most cheaper

opportunity a the achieved decade, over that As and for Energy previously we be or that growth for representing a Resources. shared wind result, coming have tremendous the we exceeded expect projections solar long-term will

As clean track reductions we we we COX have the the today, of the across of efforts proud celebrate country. our improving record Day a result anniversary of energy are environment of delivered particularly Earth that our as through the XXth

of occurring sector. to the that building to we be at We the energy are energy era a very the is of both continue vanguard driving clean at is disruption affordable, hard and that are forefront and within sustainable

years both projects contractors over and To issues on XX opportunity, the Energy that Resources’ this experience and leveraging to expects significant program than growth remain are using deliveries long execution. than we suppliers year. not disruptions in that any the mentioned developed renewable locally. By at capitalize previously of our we’ve significant significant despite and extend keep track more or construction relationships schedule, equipment we and track of and labor wind of turbine ahead complete any wind significant solar are to more megawatts the X,XXX our the Resources occurring its experiencing expect excellence business, XXXX I’ve able been that globally currently Energy we’ve of and on our our that with to record equipment strong this

continue While never that extend that of closely, renewable our we expect to and track record will of of achieve on projects projects. this our having in-service dates all XXXX this their planned construction one our wind we believe monitor situation deadline PTC will a missed year we

In been these separate Resources’ time. record are like track supplier, will a Resources’ customer, competitive expect periods of financing to want Energy challenging experiencing, on us contractor, with over a of Energy combined advantage we times. ability other customers uncertainty relationships key during company’s increasingly commitments. confidence extensive developers execution experience, from has all our currently deliver and in its we

may of our this we present. will falter of opportunities and a that to as any leverage may some we result addition, expect look challenges, that these In competitors

Power on facilities. and access To disruption ensuring been Energy’s and in market our maintenance support metrics group have always become of continued will core sector apparent. objectives, have of through access sheet Resources’ the credit and most focus year value have entered us. We for credit and and access balance bank the capital. largest the financial access FPL, a liquidity strong of we’ve ample sheet with the and Gulf like over to the be Energy’s NextEra meaningful balance months Energy strength the even to of always diversified largest In NextEra more and focused times of we experienced, to to several liquidity strength continue strategic industry’s execution past The against recently our cushion liquidity to strategic significant

in liquidity. In add equity credit issued the additional our middle to $X.X cushion against and supplement billion of February, metrics units further our we

bonds, have billion our FPL term disruption $X.XX $X roughly Additionally, billion since liquidity mortgage with further loans. an holdings $X.X holdings market we and an financings, position of improved $X.X additional capital additional in debentures, including in longer began, billion capital in billion first term the

history, the prudent billion financing Following NextEra we in going and investment program these help has largest capital liquidity now in support to approximately to our be issuances, plan forward. Energy plan our $XX continue in to

Over to and able continue well is and the period business NextEra on long-term laser is a Energy near we of over of of resilient ongoing on customers focused well Even throughout the both sheet dislocations have NextEra which the that We our overall long remains strength its deliver remain Energy summary, balance a market Energy’s time, that building shareholders, horizons. regardless extending to last record execute conditions. the focused for of economic In positioned and to and as track NextEra underlying greatest month, capital, access businesses. to resilience of reflection maintained as the market today. a

stable both for long-term quality in and regulatory structures constructive, the customers, record forward-thinking investors one that able most At country. Florida’s Power economic be we of to clean and should strength and believe the energy Gulf we of changes high in long largely the confidence and Energy Gulf environments balance contracted capital with in and is perform sheets will customers will operate environments. execution The insulated underlying variety from which our projects portfolio in what environment FPL a continue with of to is combined regulatory of companies and focused expect Resources, FPL provide the on be of the approach constructive economy. credit Power’s deliver the well track

top results be result near to our challenges in we to at as Despite continuing our diversity if Energy’s financial earnings most credit the and at the not XXXX, the end XXXX, customers. same I deliver and our businesses, underlying while time or share and, for strong the of current strength per able NextEra ranges expectation XXXX and of economic maintaining deliver are a of adjusted will ratings importantly, reliably disappointed

conditions, that our may even weather I for expectations expectations result operating to confidence meet from reasonable when current the outcomes impacts in ability While always accounting range of our a and assume normal pandemic. these have and

turn Let Partners. to Energy me NextEra now

to of While significant pandemic a created Energy any the the and commitments. Partners has to on or We throughout as NextEra not currently deliver result continue impacts material positioned pandemic. do operational expect well COVID-XX financial economy, the uncertainty its objectives its remains

overall we taken Additionally, as well today. the even the including cost are a capital, to reduce year, favorable result last that more times of valuable Partners of we the entered of This acquisitions, two that during being is actions growth NextEra organic steps took investments positioned. significant and particularly uncertainty executed its positioning like Energy experiencing XXXX are

quarter last The first and benefit year’s EBITDA results XX% adjusted cash of distribution in execution year-over-year. for XXX% respectively with apparent available and roughly is our increasing

XX-month Desert forward. achieve expect a flexibility distribution XXXX distributions mid-XX% We payout maintaining the range, NextEra the ratio even highlighting objectives projects, to excluding our after from growth Energy Partners’ trailing Sunlight while going has cash in NEP significant

growth NextEra to long-term Energy without previously any distribution objectives While had to we acquisitions we the disclosed. than will until its position the it the year gives continue flexibility with later to which need favorable year one make Partners XXXX, achieve be opportunistic, entered the

Partners’ Energy Energy quarter, supports At flexibility also its its position on of including Partners liquidity position, $XXX long-term a the the objectives. net NextEra end growth achieving liquidity cash first maintained of hand, NextEra approximately million. in

net to NextEra be year in to only Partners’ a its and significant near-term NextEra debt maintains no this maturities issuance help XXXX, Energy any conversion price corporate which may debt $XXX million Without achieve the needs of units objectives. converted debt is matures achieved. Energy liquidity September Partners until other is maturity that level convertible acquisition near-term if

the as such project liquidity credit the of facility NEP capacity the maintained. upsize has significant executed The be create portfolio, within recapitalizations us the debt its extension project finance and sufficient well will steps past Partners that as year, confidence that as give revolving in NextEra Energy that

maintains By the financing of and for capital capital, private pursued assets, strong in We source. provide also expect a Energy disruption significant an NextEra flexibility demand Partners financing markets. capital attractive the leveraging since its has quality, NEP high that that access IPO diversification has clean contracted regardless additional that energy potential will the of long-term infrastructure continued alternatives to

LP we going summary, accretive holders is to well believe positioned In execute unit for forward. acquisitions on NEP

as NextEra with renewables to cost tremendous access existing uniquely of opportunities, well the as execute long-term factors NEP to delivering projects potential With to much we expected gigawatts, combined had. strength access of believe as Energy Partners’ the the organic on the portfolio that including ability With industry. take the forward sources advantage and long-term positioned Energy that Energy confidence to energy years. over continued XX unparalleled capital, of backlog, assigned we on now renewables have future low growth ever party in growth portfolio roughly third look have is we and of disruptive as acquisitions the Partners’ reshaping NextEra We totals Resources’ to coming

market focus believe well and ongoing the current COVID-XX positioned. pandemic building a we our not fundamental on of the of we able the proposition on throughout period the deliver economic all the throughout Partners. time, NextEra NextEra and we businesses remains all objectives uniquely cycles, Over deliver uncertainty are value resilient positioned economy, In long well we’ve of on and unchanged, of closing, are Energy entered Despite Energy while commitments our their it has the to disruption or strategic changed that across significant core has challenges, going created to companies period forward. focused

to I’ll the results. Rebecca to first now call over turn review quarter the

Rebecca Kujawa

everyone. morning good and Jim, you Thank

with to Let’s FPL. detailed beginning the now results, turn

were same quarter $XXX income Earnings or capital For $X.XX over year share. last approximately increased increased we income was our capital the the billion $X.X billion. billion Regulatory between year be year-over-year. X%. FPL’s the first and quarter of full $X.X of $X.XX of per roughly XXXX, quarter, employed investments for expect driver approximately net FPL principal $X.X per FPL’s to expenditures million net growth share reported capital the X% of and and by

FPL’s the will at regulatory agreement. reported XX be of XX.X% XX.X% months approximately purposes rate which for under allowed to X.X% is the upper end ROE band for March the of XXXX, current our ending

reserve quarter, that we amount FPL utilized achieve balance $XXX million. the FPL leaving in reserve utilized of utilized was During the regulatory of million quarter that to ROE, below of with of was a The $XXX amortization which XXXX. target this our quarter first amortization

the expenses, in of year the more revenues discussed, previously no amortization this its we expect and year FPL and to reserve we’ve be As underlying half of pattern historically given first the utilizes different.

expect amount to sufficient further will continue end under a rate to this We with base that continue operating a base FPL agreement customer avoiding benefits XXXX reserve of through XXXX, the during amortization rate increase by settlement time. creating

FPL to efforts, smart for integrated electric an an development investment Turning Gulf Power highlights The updated opportunities FPL and Gulf capital our filed Florida phase we reflects Power expectation filing as in that site system that plan operate to begin the next an of XX-year will and recently across systems. XXXX.

since discussed, company. a potential Florida and merging the Power will previously acquisition been the reviewing its larger Gulf single this utility into closed and Based review, for we’ve benefits financial the a operational create merger on customers. have both in FPL As expect XXXX, benefits of that companies

over take effective XXXX. and continue the Power As expect additional in first January for file a rates quarter of plan to case XXXX result, months the FPL coming in Gulf to rate to new of and combined to a merge steps

electricity current Of decade, of solar megawatts installed FPL recently XX-year ‘XX end program. solar it of its of Power projects solar X,XXX megawatts X,XXX more within emission approved XX% Together including total the be plan. program, this expected of zero which will largest capacity, nation’s is XX,XXX in service the rapid Gulf to territory. by than are under result XXXX increase this the XX continued combined approximately as the have expansion Solar that a generated through community the constructed XXXX nearly an is of capacity, projects FPL’s megawatts FPL’s amount execution site energy The of in By relative to plan approximately

total from official launch across substantial been has been the all innovative reflection participating the generate XX in customer years. cost-effective, clean private is program solar This has strong its demand Since the expected with of that for one residential $XXX over net month, demand energy a solutions. demand week over residential is and non-participating capacity customer increasing last installed cost interest savings classes surpassing total past customers the of rate million life. to customers of program The in

is last with XX-year expected Beyond X,XXX to deployment site by a affordable. customers capacity the also efforts site battery both total and supply megawatts in XXXX. significant that expansion, plan, the approximately highlights other to plan solar there the its of dramatic FPL’s with increase storage a is now year’s storage clean energy of Relative

coal within FPL reflects plan its of of coal essentially plant including eliminating later this from site all last the the system, the year. Additionally, Florida phase-out integrated its operating

our this this site FPL is solar diversifying in FPL of combined-cycle to that form in the Power particularly plan the decade. the of with natural of most be portfolio U.S. further parts Finally, of Gulf battery and the at belief plan This elimination Florida, year’s generation in generation, that gas expected generation its reflects cost effective constructed storage paired increasingly middle plants with previously reflects an renewable and were

these COX and by the value in proposition generation XXXX. already expect is modernize below enhance reducing our combined customer As be U.S. the XXXX our XX% average electric targeted also FPL nation execute further Gulf among fleet, emissions to and while to Power which the to is we opportunities on industry their lowest rate,

COVID-XX first capital solar In the or mechanism in additional base FPL’s rate the entered year. on as Solar late solar built remain agreement, of totaling six service. this on of of SOBR XXX pandemic, sites, An to Together on service all adjustment, placed settlement rate track megawatts budget. projects Despite by FPL’s Solar Together XXX well the challenges track megawatts remain megawatts presented XXX the be projects and final being of approximately major base under as the January,

operations budget projected and towards center in as to remains advance XXXX. the of X,XXX Dania Beach efficient, schedule highly construction date on it commercial clean its solar, on energy roughly Beyond continues megawatt

opportunities We XXXX, employed and from best-in-class X% will ongoing investment continue our annual capital a smart FPL’s enhancing approximately that compound support further to growth proposition. regulatory while of expect value rate XXXX through

me expenditures to to investments per its net or smart continues million. million were as it on $X.XX million for year capital between to Gulf’s customers, the and Power, $XXX million expect reported $XXX now of execute quarter Let benefit income continue capital for and share. full quarter which to first turn Gulf XXXX $XX capital of $XXX we investments be the

ongoing regulatory ROE March a of year-over-year. Gulf be XX.X% capital As reported result these investments, ending employed approximately increased by Power’s the purposes approximately months regulatory XXXX. for will XX XX% for

Gulf execution first project, roughly overall The the to solar in Blue well. center, Indigo energy was XX Power’s of month. service this Power’s earlier continues megawatt program progress placed capital Gulf solar

of resiliency its the coal to natural to the connection including Florida continue capital Plant North remain gas All on investments, major other and conversion Crist track.

costs execution and position. from ongoing ratings Similar notch Gulf these which strengthen acquisition reduction NextEra upgrade Power modernization credit citing by well, believe a recently late position of successful we which as one upgrades, efforts the upgraded Power Fitch Energy’s and We pleased further December, since in to with its operating Gulf’s the S&P’s of strong in resulting overall closed, credit reflection one-notch and Gulf both are FPL financial are

decline by economy consumer in Recent unemployment being Florida to the country, Similar the to is impacted ongoing reflects economic a increase other confidence. parts data pandemic. the significant rates and COVID-XX Florida of beginning

new the past cases of that to in encouraged average has Florida COVID-XX seven-day are with As the pandemic, trailing we impacts the the deal modestly weeks. of two continues declined

position point a rebound low we for it the pandemic While at severely this believe with crisis combined how unclear policies the of is with tax, is be continued economy which us. the the the once of attraction impacted, will this well Florida its strength pro-business worst Florida entered behind

customer FPL’s of increasing increased the quarter. recent was by by from FPL’s strong comparison. trend declined quarter, comparable driven underlying in of basis, reduction its by primarily growth, approximately sales by as During X.X% a year-over-year, usage first quarter more continued the X.X% underlying sales FPL’s prior growth a offset favorable On XX,XXX customers retails average number year than customer. per retail weather-normalized a weather

pandemic to the heavily load very continue limited customers at XX%, and than of than which to on the industrial sales, weighted We evaluate a we residential less retail effects are to at exposure FPL’s X%. have more

Additionally, comfort this driver we as warmer FPL’s both is months related of stable, year. load and especially remain since the maintenance, demand we approximately cooling relatively head and to therefore XX% of building into important the for expect

Weather-normalized retail decline has offset are X% for past usage usage the with the average. however, two-year four to sales years, other to underlying prior this the down more sales weeks two XX% past weeks strong in prior residential four in declines increased increasing the relative offsetting with partially classes; approximately than by been weather relative nearly overall

mechanism to our any retail expect ultimate by provided our known to amortization the support underlying of offset allowed band X.X% the upper under of While the impacts fluctuation in bad the a regulatory end expense on ROE pandemic usage we continue to reserve of debt sales the cannot and be at or agreement. this flexibility at time, current XX.X%

year-over-year year the versus comparable increased increased roughly largely Gulf in quarter. underlying retail prior per number For comparison Gulf of by offset customer sales X.X% Power, to and first quarter customers usage as increase an the approximately an XXXX. customer X.X% were relative Power’s unfavorable average weather growth

increased prior versus prior Similar decline last X% over underlying the have versus usage four the weather-normalized Power’s overall retail in the nearly to X% average. offset sales the period strong declined Gulf two-year two-year this Over weather average. and approximately retail weeks, FPL, sales

Gulf’s costs, Gulf revenues than any As impact more on or unlike reminder, mechanism so FPL, variability under to reserve earnings have does the will to a fluctuations amortization not a Power in its offset and have ROE therefore settlement FPL. agreement

discussed, when As we is evaluating weather-normalization time. imprecise is of often short periods particularly have and so

transparent, the the caution be are of considered as load together We but that assessment be in indicative to should in an and with assessed our effort these providing changes changes in overall usage.

Additional sales appendix FPL Power today’s are included and in the at presentation. details Gulf on of retail

$X.XX quarter Resources, per in which from is earnings quarter $XXX increase turn XX% $X.XX now results. reported per million earnings or share per $X.XX and of or to comparable share earnings approximately of GAAP adjusted me adjusted year’s first Let of This share. an million XXXX last or $XXX Energy

last corporate results in have transmission reported year’s been first projects reflect of a reminder, As NextEra our and segment. quarter Energy the restated the to formerly other results

New was megawatts improvement per that Contributions commissioned per re-powered and of due by increased XX%, more versus new XXXX, existing the where increased contributions our by resource were XX% and Energy wind were in and than during $X.XX gas contracted resource $X.XX an our from wind at XXXX. $X.XX transmission, projects Fleet-wide the also X,XXX first business, during results our favorably year-over-year. solar existing Also wind which share from by $X.XX increased pipeline including of to generation long projects. assets XXXX, NextEra wind volume infrastructure added contributing investments, versus increased share. quarter average, PTC term including

by business partially reflecting per $X.XX and reduced first primarily were from of share contributions by share, favorable growth and dilution. continued the which results increased particularly business, interest as impacts These versus contributions other $X.XX lower All expense in a customer our declined offset result trading supply last strong year. quarter the

our megawatts backlog with call, XXX of this wind had X,XXX two team storage, our and projects As re-powering megawatts the against Since continues solar, now battery XXX forecast megawatts projects. tracking the renewables years Resources’ to within period megawatts supporting the mentioned stage, we the are quarter’s to backlog, we ranges early remaining additions quarter the development financial XXXX to strong total extremely that middle we and well Energy of added in this development XXX At well announced assumptions With and in XXXX previously XXX last this introduced and of are renewable of track the backlog against development Jim origination. including another we our expectations. for year. last of earlier, of half of wind, a megawatts period, have

and and projects post-XXXX X,XXX megawatts, growth originations placing historical the includes far long-term stage now visibility. wind, our of approximately at For period, totalling backlog further supporting our solar Resources’ us ahead storage Energy this

biological to opinion. our resolve on Mountain related Pipeline issues work the Beyond renewables, and MVP’s to with relevant continue we the partners to Valley with agencies

encouraged Pipeline’s Appalachian original and oral by will the tone resolving its crossing similar on Court’s for case hopeful related decision of Supreme are Atlantic Fourth at arguments issues overturned, the We Trail remain the Court Coast that be to authorization the MVP. Circuit the

Corps We court enjoin supporting and that Montana permits out also the under anticipate situation the decision incorrect federal from are the evaluating the Army to Nationwide rapidly. XX Engineers fix ruling program. of the will seek court the is recent government issuing We of to the federal believe

for the $X.X during the we a XXXX all and an continue currently of successful a billion. estimate in-service these issues, along Assuming timeline expected project to pipeline date of resolution approximately overall expect target full of

Energy Turning to now $XXX Energy, share. $X.XX XXXX, the of quarter or consolidated income NextEra for million results NextEra for attributable was to net GAAP first per

billion NextEra EPS year-over-year. earnings adjusted roughly and respectively. and Energy’s flat per were share segment adjusted XXXX from $X.XX and the corporate first quarter $X.XX earnings Adjusted were other

plans year-to-date to to of The a and on expected regardless confident financing As year execute plan, execute NextEra significant our executed position are liquidity our mentioned, the we the financing potential of well that beyond. strategic we plan positioned our Energy’s disruptions. current about Jim $XX have ability ensuring that represents remain approximately XXXX for we portion market is billion, balance the and of financing

are the later positive projects has substantially term, commitments as programs. balances as near placed the tax investment execute currently we Energy service its Resources XXXX for all to ample helping expect our cash we of current financings, we this which the ensure expected close equity renewable year. in to liquidity In have on

expectations extended financial we year last remain The unchanged. XXXX which through

that expect to annual EPS of the off and of XXXX from plus XXXX $X.XX, of and $X.XX EPS Energy’s We Florida XXXX growth to X% in to a respectively in $X.XX X% rate the range compound accretion continue adjusted be of through NextEra acquisitions. the adjusted XXXX

For top are disappointed of highlighted, XXXX, we this be to end near range. $X.XX, in of our will to we able be EPS adjusted the the results and as financial we $X.XX range deliver to at not to continue Jim or expect if

rate XXXX EPS line share. that For in of adjusted of X% a of continue range. XXXX we our growth will XXXX, XXXX, annual to the we grow adjusted range to a roughly off range to to expect operating EPS, X% EPS $XX $XX.XX with cash flow translating adjusted to From grow in compound to expect per

of consider outlined. noted, weather Jim to have assume related expectations our a the normal range while we that current As with the conditions, impacts as reasonable expectations always and operating we feel pandemic, we comfortable

and least of of in approval through growth As a earnings share grow a board in flow dividends the XX% rate to growth going February, NextEra to we expected announced in XXXX, an which dividend well dividend policy share of rate XXXX per positioned policy growth earnings continued off year of at per translate for per the our support expected per of operating Energy, continue reflection at to NextEra Energy our roughly the The board’s strength base. in a updated approved forward. we remain share to adjusted beyond is is dividends to excess XXXX and cash

Partners, Energy turn for outstanding operational me now which Let performance financial and to the NextEra delivered quarter.

Including was cash distributions EBITDA for adjusted projects and $XXX in more full wind Sunlight against both from growth an year improvement quarter. of projects, have achieved respectively our was XXX% versus were the up quarter drivers Desert from in CAFD the contributions and comparable acquisitions XXXX. Partners periods, than XX% Energy available from First growth. all of million the XXX% Contributions portfolio $XXX principal distribution, NextEra prior and resource would Desert million, Sunlight including

cash million $XX available EBITDA for and of $XX added distributions. projects of New adjusted million

the also a of distribution was resource a portfolio, service partially XXXX. the notes higher reduction NEP higher of retirement expense. from our benefited was service at the payco the by interest year-over-year first versus debt Cash debt the XX% of level XX% and the primarily Genesis corporate available offset in of wind [ph] outstanding quarter average long-term in receipt in payments. reduction For project as The of project-level project-level for result

these fees IDR since these operating as As reminder, consider a an we net results expense. are of

on details accompanying shown Additional are the slide.

unit, our to quarterly on XX% per per Energy growth our annualized basis, an common a unit per NextEra end board XX% the continuing distributions common at $X.XX $X.XXX or Partners’ range. the Yesterday, distribution declared rate top of track year record of growing of

executed enter As XXXX turmoil. Jim Energy to transactions the earlier, that the in withstand to market positioned allowed NextEra mentioned well it XXXX recent Partners

LP portfolio level reduce has of Partner’s approximately Partners and and to With NextEra will Energy stress, benefits execute on XXXX, to its objectives raised to initial for the financings $X.X until fewer convertible also three expect need coupons, reduced improve billion future through its large financings are equity financings. and acquire help the financing unit needs XXXX. provide growth of The future assets therefore future allow NextEra long-term of a growth same Energy asset needs. more low acquisitions to we distribution financing now growth NextEra a cash to which During NextEra holders, Energy convertible equity these portfolio are achieve on Energy flexibility advantage asset the objectives. At that Partners reason the tremendous execute without distribution long-term further additional market ability times Partners

re-powerings, discussions attractive Meade wind well. the Partners and these pipelines, Energy long-term NextEra XXXX, expects to equity organic of as Energy for recapitalization of NextEra As capital. the support financing accretive to steps Partners through Texas facility project, related it investments finance pipeline growth its related financing for to its the advanced towards investments two sources a to opportunities tax finance the the project advance Through took investment in these expansion

NextEra and at project. notes our Genesis company purchased the Energy year, of Partners also all Last operating company outstanding holding

to related long-term financing Assuming can support assets, confident, capacity. flows favorable the the from resolution remain about cash PG&E Genesis significant for we our project which continue

Additionally, that currently bankruptcy, cash be trapped we following projects XXX Sunlight at from XXX to our PG&E’s is and distributed. expect Desert emergence

distributions the the NextEra The the trapped and Sunlight cash first As sources additional financing liquidity approximately are and restricted of $XX the have capacity of million capital Energy Genesis or Desert been Partners. withheld of potential quarter, of of for end at projects. the release

Finally, over and term credit growth $XXX in by facility its NextEra revolving Energy flexibility financing further objectives. to and supports the $X.XX This incremental upsized million executes Energy XXXX. last out billion, position to on Partners’ NEP extended was year NextEra long-term how the Partners’ liquidity was provides

to manage of Prudent we a capital all management how of businesses. our is approach hallmark our

particularly NextEra well of the result a the is to we expectations. achieve growth taken Partners Energy over positioned its believe As long-term past actions year,

XXXX of which Let million calendar me full now Partners’ to year distribution at expected forecasted Energy remain of a related is for for turn $XXX the rate XXXX. to to PG&E year-end unchanged. range run $XXX cash million, be Including end available projects, to expectations XXXX expectations, in contributions portfolio NextEra the reflecting

million the XXXX Energy year-end to to projects, contributions all from rate the run to expect range be $XXX $XXX Sunlight Excluding million. for of in continues CAFD Desert NextEra Partners

to rate projects contributions expected which full to run be expected in is related $X.X from is billion of PG&E XXXX billion, range $X.XXX be Year-end EBITDA as assumes the to a adjusted to continue revenue recognized. to

consider impacts with our while normal we expectations. reasonable and to Energy, comfortable pandemic, feel NextEra related always to of assume weather we these conditions, range Similar expectations operating as a continue current to the

of a as anticipated IDR expense. operating the we an include treat as expectations our these As fees of impact all reminder,

distribution to range XXXX of XXXX. per as base fourth XX% expectations unit reasonable $X.XX, in our XX% distributions of per LP a year continue least to we quarter through a of From see common growth annualized at an being rate at

payable range to a XXXX February in annualized the to of expect $X.XX is common per in rate that $X.XX fourth We unit. be distribution quarter XXXX of

I long-term now XXXX. NextEra Energy its to be without As growth previously until the distribution for Partners acquisitions additional noted, expectations able expects need to achieve asset

the In prospects the we highlighted, to and as in NextEra that excellent believe Partners for NextEra summary Jim continue and and economy, the growth. market challenges and continue execute to both despite Energy their Energy maintain ongoing

and We about on future delivering remain continue going focused our shareholder value are enthusiastic to forward.

up that remarks, with open we the prepared questions. line our concludes That will for and

Operator

instructions] [Operator

question ahead. first Please America. of comes Dumoulin-Smith from with go Our Bank Julien

Oh, go to go going it ahead. Guggenheim looks Please we’re with Shahriar like Pourreza with Partners.

Shahriar Pourreza

guys, good morning. Hey

Rebecca Kujawa

morning Good

Shahriar Pourreza

here. questions couple A

they’re commissions two of entities. the next states Florida until schedules. we’ve regulatory on process know this combining I to you to delaying open-ended. is file file a kind In to aren’t planning the challenged in First year, of some peers get XXXX, your seen side, guys year and in one early have who’s later proceedings, you the a looking GRC bit reengage

especially you’re fact in you’re with to stakeholders you’re NextEra. a as early preparing, process of the of outside seeing finding, within case you any of COVID-related up are in meeting sort file you various year? and rate Are setting That currently said, next delays, guys

Rebecca Kujawa

know, laying for this top and the mind regulators course we and are and question, Shahriar, with procedures over have months got of lot potential beginning very of a typical our year the to evaluate highlighted regulatory--you to and last of that I of really beginning prior stage but the year-end in of and focus things as filing a of time sort year next preparation accordingly. groundwork. in front year and any changed of into between lot of we’ve appreciate how the adapt we’ve preparation, of us, ahead is next this our and now really of April, couple at the questions have At

But the at and much on on continue this well preparation, is very to team’s progress point, focus that. we our

Shahriar Pourreza

but in Jim Got to remarks, counterparties? to you seeing the gave pretty waiting the development of just X it, have over gigawatts on couple of so are backdrop that you’re deteriorate for then of still the a just balk. you’ve these very solid on addition seeing PPAs near, current if part some kind obviously any a curious landscape Does I’m of years, and of any You next and kind certainly--you backlog, X.X the are economic the prepared counterparties counterparties? good hesitation about

Rebecca Kujawa

highlighted well year, laid for where the on that that out end of with are pleased are. towards to in everything are the very at last now prepared we we’ve remarks within range very that stage we well we’re we the in which we Shahriar, this expectations out. XXXX, progression the execute positioned Obviously development laid

More was many, mind and pandemic highlighted Resources been we and and also Energy to ultimately emerge those well prepared the terrifically not most team John of have last the specifically highlighted contracts starting remarks, our of if that of executed as signed couple since customers. we top of the the in weeks, have in

about the inefficient, and generation and the alternative of expensive very to and that’s portfolios form replace as renewables. customers cheaper into than are their of with expect save and for renewables think generation why them many least far build form we’re of customers coal cases renewables continue cost facilities, in our be, continuing you If to are those backdrop on our plants that the off might customers will nuclear well operate customers, very would that when they positioned We and execute. focus want they their will what’s their to best to and money some turn

John Ketchum

John. is onto may I Shahriar, just that. add this

built, than we are way. terrific buy front that just Rebecca mentioned. in now seeing a that We build development all a in reasons environment operate cheaper, have for opportunities the The more us, the cheaper, get the fact anything of best cheaper, we right more customers industry, we project seeing want so is to going and are skills development we confidence certainty come our actually that we

extremely leverage small to we both going are have, balance access which against and opportunities we to create to lot in plan are wind, even Given and solar more something forward. and a compete a sheet, of we that that important capital players

So actually, created us. has environment current a the for better environment

Shahriar Pourreza

Jacksonville for these. Santee just Jim, obviously space lot Perfect. it know, done. address strategy valuation like question this - and been There’s looks love in I you you of you one know - Cooper, dispersions to they’re a

recent with you especially about in you think in of You’ve Kansas lost given highlighted sort any as have the Do media opportunities been refreshed I potential interest thoughts, and Missouri. consolidation? just mentioned,

James Robo

for a to address no just moment, means all, by Santee of done. first Cooper is So Santee Cooper

not by in I all Cooper, what the wanting senate quite lot wants of bit hotly Santee topic and behind done, and you to the Cooper the The to in pandemic, Santee to is Cooper so calling no budget energy know, obviously middle a the disagreements around But of the sent led South a do can--you still Santee sell a it’s sell to you around agency. a say of the that to debated Santee Carolina. Cooper. in letter there done. it’s saw a remains is would with of means I them house think The them, rogue standoff speaker a governor

would make standpoint, do. I accretive. be an sense gating It strategically we always strategically, everyone M&A significantly to overall has our what elements remind to of just from that Just always like anything has to

You it’s a risk been critical balance believer things way these that risk. things is little with sheet big puts - critical all our a strategy, finance remain at takes same. risk. these the know not I’m how very to historically strong rating the so in really or those either financing all and we to A credit things in us

the strategic, around of to see the to remains going financial think to I pandemic, with pause. to what That’s in to is markets a our economy terms with sheet. it environment the we’re it and has it and the balance thinking that’s think counterparties see reaction the be But very environment a be you’re driven uncertainty take obviously been uncertainty the I the in our by to you’re consistent unchanged a accretive, remains that has in has approach natural that with to be in. strategic unchanged, strong going

Shahriar Pourreza

again. Congrats, guys, on these results. Congrats

Rebecca Kujawa

Thank you.

Operator

Steve Our Fleishman next question ahead. Research. go with will come Wolfe Please from

Steve Fleishman

Good morning.

couple new through equity any NEP. targets, I financing of a the through end of needing true assets, questions growth guess the for then? your ’XX, meet extension any on Just Initially dividend also not that is to

Rebecca Kujawa

but the There to this need. convertible debt need would targets convert far financings need, to on Yes, convertible highlighted since be we we of and year, what wouldn’t the XXXX. potentially no portfolio until the Obviously don’t we later and acquisitions would that have equity meet equity, distribution that Steve. excess remarks particularly existing into any We required. there’s liquidity prepared significant have essentially issuances new we in those growth it’s

Steve Fleishman

it on or slide, regardless think a provides little for a give color guess this secondly, there. and infrastructure more attractive in your environment high Jim’s can Then process private financing was capital demand of comment, assets even that quality Maybe you there was I I the conditions. thought energy clean market source,

Rebecca Kujawa

the it leverage you and the time things infrastructure lot frame, know, so that the--you the in it portfolio we’ve amount convertible in to be of XX since evidence forms, couple financings private just attuned and NEP number be have significant continued in I’ll inbound ability of last, confident as has we so months, there very been a conversations to time. to that is Steve, to last call continuing interest is move seen apparent know, Since capital, capital equity type the we Yes the of changes pandemic with of executed provide those with well interest resources to one not forward. various in those the there that any that of continue our particularly and months, capital of over of a as forward that parties moving call to a we’ve is

until fortunate We’re as that to do opportunities accretive we opportunistic, and well we’re that holders, but the a and extent to to we highlighted, XXXX, to that. course unit we for need will take are in of NEP of advantage position continue be attractive may are that anything, there good we don’t NEP

Steve Fleishman

question, renewables last Then overall. Okay. a just on

was--it then these counterparty there. no the fact stronger I think days, be? same point of say if get mentioned you have people acquisitions growth, opportunity maybe seeing saying a time. you but projects other you’re Could the someone opportunities and might last thing heard struggle could more amount the meaningful be to that I I understood want right, demand maybe there or in for so change how might for been that on I that the Jim, people talk done John, that think

James Robo

could Steve, I meaningful. think quite be it

a didn’t had and for have source had in that a were If great time we of to opportunities of and ’XX capital where them. capital, we ’XX, you you lot look back developers at who access

ever portfolio our as activity is If got projects the people I it team and was reiterate is I our review to of very to acceleration and that our I activity the encouraged market just with prepared that ahead the remarks, really of testament a we’re anything, something want renewable be. and pipeline by real of a relationships. strength strength see and said the seeing, it in just was honestly the I said. we to through of so struck of now to strength John speed better full and entire on front of that expected week, last It our the that. our right and I really, development that was

Steve Fleishman

Okay, thank you.

Operator

from Dumoulin-Smith Bank Please come go Julien America. will question next with Our of ahead.

Julien Dumoulin-Smith

guys, the Hey question. thanks for

see a as commentary I I about then this it, quickly, perhaps back rate again want reserve part whatever of for available that about more here, confidence to understand to importantly that year critically, the you first it you when at do utilities in again think look have in - the Florida as clarify the with the and heard coming Just the the you suffice, normalization cycle, amortization, and like period the will there’s think minimize caveats, and subsequent you to you just trajectory is numerous the how you towards reserve as load look balance think and case post-rate the implementing earnings some balance amortization I for but that case years vol? something here subsequently

Rebecca Kujawa

continue the the all sufficient so a remarks let file XXXX. that reserve that amortization would in balance in highlighted the to change the really effective containment start ’XX we are is case and with to confidence new amortization. settlement expectations to that pluses be and Okay, factors the us XXXX, to of our no agreement will balance the for under again, for operate end and in through rate rates of reserve continue we, million We cost at minuses me that $XXX to that now have

been for today. has a but going outcomes, But concept agreements rate and assume for conditions, forward. been, not through ourselves regulation, has from it’s in stability different about very long that it’s rate of you customers constructive ultimately have the provide them it will particularly would to something think, able we including settlement Reserve one case we because of find it amortization think FPL settlements, we we so term Florida that good very number been a has in a come variety over

we pleased been and have We for regulations operating on, the again constructive of are benefit customers. nature so of with the very particularly that

Julien Dumoulin-Smith

an it, guys to of of renewable side the backdrop Got excellent. you coming amount the business, the have obviously here. back incredible given Then confidence

you about backlog I there. and pretty are would know in gross not that slippage especially You’re the about confident, execution leave you I’ll timelines, firm? in relatively prospective even seeing is amount that think add just the talking backlog seems that even here? of staying XXXX, you but any C&I customers it guys conceivably even as

John Ketchum

slowdown. drop-off, no No

XXXX, start, just which terrific of we’re of quarter time that head able the to a work XX% of of so PTC that things development through with tons were wind One and being XXX the this wind, beyond we to first to to add XXXX the four to was megawatts just pipeline at year, in is years, the essentially continue this next here able be only or quarter, over XXXX.

so lot tailwind. a a it aggressively own renewables at of what’s coal at to a makes customers of that’s competitive driving Knowing that they an option renewable environment, it looking with bills a not we but that being also really recessionary folks a peakers, their need in clean for lowers economies lot as a lot able very and pivot most, to story Just that only folks even of more demand, ESG own time if brings a as energy are demand.

Rebecca Kujawa

just in I on of highlighted with many something add our years be track we budget, developing important for supply the--you know, CODs, reach chain we’ve projects cases. reasons focus vendors, one continue strategic to now to and confident about partners keep our something our on that really ability about and relationships our going why to was the is - our on to our

at that of went businesses, a on chain. do, intense even this it our all we and so with As us into our development but supply that be We this year may ourselves year, posture construction well in focus we we circumstances year Entering had intertwined complex manage have. into how more the always and we was knowing priorities now with these. to many positioned it significant through deliverables facing how find the and

where We stay I a that underestimated. that should track we’ve last of pick we’ve we on where to our worked them the couple customer top budget. with and don’t had quality be to significant instances closely are think over weeks them, ensure on suppliers projects and many

on environment. deliver well term and this really long type in suppliers off total to Focusing ownership cost our for of paying ability of is us for

Julien Dumoulin-Smith

alluded that the going to that seems back permit it to, NWPXX you sure on there Excellent. good Last make process-wise, Montana, - clarification but confidence level? quick pretty narrow just got on guys like I’ve you’ve they’re got to right your confidence

James Robo

think happen I with to premature Julien, what’s say it’s to that. going

think it’s I still to on. us a think to--it to is early aggressively the year. to dealt able it. think pipeline this with going government said, we to We correct was condition is being That try ruling condition it’s incorrect quickly a the obviously being deliver and

feedback approach continuing gotten we to of and what going really evaluate their to government lot haven’t yet We about are a is from be, it. the

I honestly Julien, early it’s to would I you think that. on right say now is what days,

very are seen quickly, with to If our it it It’s remarks for the to that it as it partners, government were pipeline resolved, were say to resolved team to to was us what resolved whether quickly. that the going remains it’s something are led needs trying be a say. that quickly, had we be. believe resolved that prepared to we with build on trying We it’s focused be get to get it our working you very--along and year, get this confidence will not that be to done--that going we to and

Julien Dumoulin-Smith

luck, Excellent, stay of thank you guys. safe. Best

Operator

Byrd ahead. will with Stephen Morgan next Please go from Our come question Stanley.

Stephen Byrd

good Hi, morning.

Rebecca Kujawa

Stephen. morning Good

Stephen Byrd

wanted see as stimulus see if underway. are might had a to broadly I additional the anything view I’m that Do strong more energy. efforts support? potential on of support that you federal part concrete for translate clean you thinking for into further just

James Robo

Stephen, it’s Jim.

too tell. it’s to think I early

Washington, as the potentially clean energy say is tell. the around--you bill are too things another a seen know, interest stimulus in to to soon there certainly focus last think I with you’ve support include extraordinarily in fluid just some I it’s on additional from Democrats But weeks, and infrastructure. over several would

stimulus focus of about on thoughtful be of and as need something approach an impacts that’s focused industry industry. efforts be of that it’s think very the and I go that it focused that any to the how have sure pandemic, it on on terms we make the we in and the of the in truly

know, we’re as it’s time You quite it little staying very I things and are tell, obviously fluid. I and will to a but said, close think early

Stephen Byrd

Understood, very fair.

one one. Just last

share on COVID-XX. residential what the uplift good You’ve on the curious given - of to questions you’re if I’m customer residential side, from could just demand if the speak movement some versus of lot power demand you’re downward the able for wondering class magnitude impacts there’s that. impacts in info of to a I’m about you seeing commercial industrial. terms

Rebecca Kujawa

Slide it the small the appendix, is you C&I--well, that commercial commercial, to the residential, it, heavily look business, we regulated breakdown give is you Yes load things significant chance and the of for take X% a we revenue percentage--you is that have a know, change our a separately did, composition in medium of and mix Stephen, also for we XX our sales, one if impacts between residential have at in FPL, the in to Obviously of some sensitivities weighted which mix of at the then and industrial. majority businesses. load our towards put

impacts in said of prepared residential, commercial. on over down period to short long we challenging, the are what load. you We tick a to highlighted, are our in of long weather a we’ve has in time, with discrete I also ability significant slight impact particularly very weather a versus and highlighted the But underlying good when of and from in but dissect pick-up pretty over remarks, a usage periods seen as consistent period time have time, more as

had significant been these so we’ve favorable it, and for in would In what very that there weeks FPL. erred here were that at orders to say we us own revenues assessment hard be in think officially you weather, effect, what might that dissect couple your you since stay-at-home you from the make to and terms have would pandemic, Florida impacts of on last happen cash some side of the of you so can on so an in would sensitivities providing it’s as

with on the negligible basis, remember a this would to we reserve be amortization amortization impact. to just impact. that an earnings have cash Again, in us or finer to available that a results no it, put To reserve point extent

XXXX demand, here, happened what load it which think about approached the course, that guideposts was last to about obviously X% To far. give course we’ve that to some Florida, and was for - everywhere of X.X% the was disruption context year. the a of effect recession, load, to in for and major that in it XXXX but to how obviously the so this you gives from over we’re way year, midyear the overall That including

Stephen Byrd

line bottom from Thank the Yes, insulation impacts much. to leave you’ve there. COVID. of you it lot I’ll a got from the very Understood.

Rebecca Kujawa

Stephen. you Thank

Operator

comes Credit with question Weinstein Michael next from Our Please Suisse. ahead. go

Michael Weinstein

what re-powering responsible ability drop-downs the contributing wind at guys. is for half to extent or Hi to a the To year years? next avoid to and over NEP two

Rebecca Kujawa

certainly a it’s Michael, positive.

forward, able going contributor. be so up year. have re-pairing so, finance it’s lined about certainly we’ve last and these near positive tax to that for for conference would or impact results equity that announced year we opportunities terms investor million it a certainly at the think, highlighted, I will worth previously we, in as planned finance of It’s $XX to a CAFD it or of and so how As the have this

from acquisitions well the well Energy as contributor the as last we were organic three-for acquisitions, the so in NEP recapitalizations executed it’s that this that other a year, case. It’s the third as made a parties, as Also as of well confluence as both on. Resources opportunities,

Michael Weinstein

that last think may be? quantified of PTC the due also in XXXX possibility you of the any quarter, talked about additional opportunity that, extension. I you Have to ever what

Rebecca Kujawa

additional about respect talked opportunities with NextEra re-powering haven’t to Partners. Energy We

opportunity PTC XXXX advantage quarter, very PTC, XX% the opportunity highlighted, the advantage we’d strong a will XXX% re-powering we of re-upping. actually of we’re so the opportunities take full of for positive through particularly in a As take this from it’s announcing opportunity to XXXX But previously thought some re-powering that us. the was end

Michael Weinstein

LCOE how question fossil about natural I’m days gas Natural do gas lot Right, wondering against has renewables. got these you. basis cheaper, One renewables stack up just versus on last fuels? and an a gotten

Rebecca Kujawa

I’m - against--? does for sorry, up LCOEs how stack Michael renewables

Michael Weinstein

prices really down, Against fuel come fuels. Fossil fossil right? have

Rebecca Kujawa

of long-term long that a come They have a time. period hope think will about planning down, decision someone definitely over making you would but prices

had and site FPL’s that cost generation, the with have together, storage think Light removed plan, XX-year highlighted Gulf all at As now that included where the two and costs are. looked and natural we’re pen forecast and of that Power are solar put we for we combined-cycle battery in what the that & we’ve in Florida form plan paired to in are mid-XXXXs reflection the anticipating we our at plants previously of least we as paper and site the a costs XX-year gas Power

particularly then pricing so in and which it’s we’ve attractive, you teens to keep standpoint, hour even customer with the From will incentives in again some to fuel incentives, in XXs anywhere wind solar. hour the operate in hour megawatt wind, and the resource to be solar think wind costs with very that attractive incentives where jurisdictions, cases in [XX-plus] megawatt very $XX areas, range, dollar continue in $XX $XX complex that $XX some many the is. for even low competitive with cost per then context cases in to to and for low post different we be But very if provide, in megawatt they are our for wind, continued

primary dramatically. and our coal that hasn’t are remember comparisons, changed that some also, But facilities nuclear and

John Ketchum

solar recently. we most range seen mid-XX would come is really and particularly the is we’ve a out prices, helped this John. Michael, that gas is as renewables, teens I that range. of thing kind parts remain prices, uptick rig and One hour which lot has the really remember not gas, units in the gas come that which down versus to still in down, of natural actually still an reason. $XX that have in $XX originating gas-fired Permian, in then are When megawatt in country, They means add prices competition oil natural have a associated we to of wind, less counts for have in new there’s which from a bit seen

very, you competitive generation. look renewables very when versus So at gas-fired

batteries add mentioned gas-fired have new not are in the significant a The today’s at targets than large renewables, more every natural where that--you is storage. know, gas standalone Remember peakers come we battery for that last in just prices. economic have, of peakers. we the only almost is There thing also storage such part storage I peakers, for now would are opportunity build-out down but country going billion dollars the ’XX. in, Battery gas-fired even costs

Michael Weinstein

you. news, Good thank

Operator

from Goldman Lapides will question Please go Sachs. last Michael Our come with ahead.

Michael Lapides

Jim plans you this guys on development question. remain your own is one you, if know John. my taking or Thank I financed. commented for know and track, that renewable don’t for on schedule I

it safe you’re competitive harbor perspective, if you supply Is or in about industry missing seeing Can are You financing dates? chain? Is biggest you have aren’t it about things for a chain the great Are obviously. the where that these lens talk into occurring? Are are NextEra, more industry they challenges just talk sites potentially the markets? NextEra? versus where more landscape, the tax in equity wind in overall, necessarily maybe Can they the think even issues? of solar keeping not you impacting projects, for industry, what supply the meaning

John Ketchum

Sure.

and to billion, don’t the largest are particular own, first other customer. whether able smaller for impact we’re that size always their largest are spend to that talked right we’re wind north being a our second there $XX vendor so see. in manufacturing across it’s that facilities in would pivot not, see we one world. supply minor but the chain, disruptions the come the perhaps player, be that about almost think that minute; given we’re a Rebecca complex, suppliers’ up, of the solar, our same we of If around and would If may I

have. the may at they look see supply that So don’t, smaller we while for That’s and just other first chain would chain - disruptions, supply one sophistication we and given the the size the something is power I buying that players.

always have is we’re banks is one equity taxable financing. that tax amount whereas developers less the to smaller needs we first tax positioned restructuring, struggle, so we equity access was be. already second developers said tax of income, That think The allocated. first a first standpoint, second that operating think the In of on fully script Again, the carry-back remarks, developers. equity allocations all XXXX I get for dibs we the for case Smaller and necessarily our not might federal very particularly notwithstanding maybe I have not or net from in loss the well smaller might to passed, extent five-year capital.

be rescue M&A running project need they’re for end think issues it opportunities of the a plan against some because these where those reasons, us, could create to I two up at the year. of going for smaller developers

ITC is a in are they on I certainty. them, theme an we be also--it’s select we’re customers that to to just clock, for there’s forward, issues around to around deliver, of able see we confidence for RFPs out in want think going where looking to them more. in as they so execution see only meeting be customer and that developer interactions, actually there’s going not year-end clock, declining navigate They who renewables terms that don’t ability PTC now build have declining more that the CODs, to knowing but and play to and starting want to

what which hear and of for very developer our good case smaller going origination those those we feel reasons. activities be We about would from for execute about not really our bullish ability feel the forward reasons, might you to a

Michael Lapides

follow-up. chain quick on the are the it more In bottlenecks John, you’re solar? smaller or the are chain, side? for seeing issues thank for you Where greater you One you impacting industry, obviously wind the the that. smaller developers the supply within across not supply when seeing guys, industry

John Ketchum

probably that of on which where they’re It bit and think sourcing they're I from using. both. depends a little OEM

of Some are that to for solar you’re to OEMs both going think see have less parts country alternatives the smaller affected, that of more disruptions wind on I are less--parts developers. and world but the

panel or a that pretty diverse things developer beholden OEM ability have smaller but might to be supplier, a made of nature have give have around somebody around of inverters, our their and which is, the lot to We how providers particular the - without given one flexibility of small a always that disruption might pivot providers not OEM amount one are else. same selections may that our that to flexibility, us build

Michael Lapides

you thank it, John. Got appreciated. Much

John Ketchum

You’re welcome, Michael, thank you.

Operator

session. our concludes now question The has This presentation. attending concluded. Thank conference today’s and you answer for

You may disconnect. now

NextEra Energy (NEE) 22 Apr 202020 Q1 Earnings call transcript