NEXTERA ENERGY INC NEE

Florida Power & Light (FPL) demonstrated strong performance with a 9.3% growth in regulatory capital employed and a 0.6% weather-normalized retail sales increase, driven by over 90,000 new customers. FPL's typical residential bill remains approximately 30% below the national average, supported by operational efficiency (non-fuel O&M 70% better than industry average) and top-decile reliability. The company updated its large load expectation from 6 GW to 8 GW by 2032, with 21 GW of interest and 12 GW in advanced discussions, expecting to announce a transaction by year-end. Each gigawatt of large load is projected to be equivalent to $2 billion in CapEx and earn the same return on equity as other FPL investments.

NextEra Energy Resources (NEER) added 3.6 GW of renewables and storage projects to its backlog in Q2, bringing the total to 35.1 GW. Battery storage accounted for 2 GW of these additions, highlighting its importance as a growth driver. NEER also successfully recontracted over 500 MW of existing projects at a premium of approximately $20/MWh above recent realized pricing, with new contract terms averaging 15 years. This recontracting success, along with strong origination, is contributing to improved returns and is reflected in the company's internal forecasts.

NEER is actively pursuing a data center hub strategy, with 30 potential hubs currently under discussion, expected to increase to 40 by year-end. The company aims to secure 15 GW of new generation for large load by 2035 (with an upside to 30 GW+), leveraging its vertically integrated capabilities across renewables, storage, gas-fired generation, and potentially nuclear. Discussions are progressing on 9.5 GW of gas-fired generation projects in Texas and Pennsylvania with the U.S. and Japanese governments, with no change to the expected online timing despite negotiation complexities.

The proposed combination with Dominion Energy is advancing, with merger approval filings submitted to state and federal commissions, and the S-4 registration statement becoming effective. Shareholder meetings are anticipated in early September, with an expected close in H2 2027. Management reiterated the merger's benefits, including $2.25 billion in shareholder-funded bill credits for Dominion customers, an expected 11% annual growth in regulatory capital employed, and 9%+ adjusted EPS growth through 2032 for the combined entity. The rationale centers on leveraging NextEra's scale and operating platform to drive affordability, create jobs, and deliver diverse energy infrastructure.

NextEra is actively involved in nuclear initiatives, including the recommissioning of the Duane Arnold nuclear plant, on track for Q1 2029, and the evaluation of advanced Small Modular Reactors (SMRs), with 6 GW of SMR co-location opportunities. Any new nuclear build would require appropriate risk-sharing mechanisms. The company is also renewing its focus on gas pipeline development, seeing opportunities for expansion in the Southeast and for laterals to support its hub strategy, with optimism for future investment opportunities.

NextEra Energy Transmission energized a new 137-mile 345 kV transmission line in New Mexico ahead of schedule and on budget, projected to reduce typical residential electric bills by $13 per month in 2031. The company also secured a 43% ownership stake in two large-scale 765 kV transmission projects in Illinois (totaling ~$1.6 billion) as part of a MISO consortium. These projects underscore the company's focus on delivering critical transmission infrastructure to reliably deliver electricity and support economic growth.