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NextEra Energy

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NextEra Energy, Inc.
FormerlyFPL Group (1984–2010)
Company typePublic
Industry
Founded1984; 40 years ago (1984) as FPL Group
Headquarters
Juno Beach, Florida
,
U.S.
Area served
United States and Canada
Key people
Services
RevenueIncrease US$28.11 billion (2023)
Increase US$10.24 billion (2023)
Increase US$6.282 billion (2023)
Total assetsIncrease US$177.5 billion (2023)
Total equityIncrease US$57.77 billion (2023)
Number of employees
c. 16,800 (2023)
Subsidiaries
Websitenexteraenergy.com
Footnotes / references
[1][2][3]

NextEra Energy, Inc. is an American energy company with about 58 GW of generating capacity (24 GW of which were from fossil fuel sources[4]), revenues of over $18 billion in 2020, and about 14,900 employees throughout the US and Canada.[5][4] It is the world's largest electric utility holding company by market capitalization, with a valuation of over $170 billion as of Oct 2024.[6] Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources (NEER), NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.

FPL, the largest of the subsidiaries, delivers rate-regulated electricity to approximately 5 million customer accounts, or an estimated 10 million people, across nearly half of Florida and is the third largest electric utility company in the United States.[7] NEER, together with its affiliated entities, is the world's largest generator of renewable energy from wind and solar.[8] In addition to wind and solar, NextEra Energy Resources owns and operates generating plants powered by natural gas, nuclear energy, and oil.[7] As of 2020, approximately 41% of NextEra Energy's generating capacity was from fossil fuels and non-renewables.[4] The company ranked 167th on the 2018 Fortune 500 of the largest United States corporations by revenue.[9]

Corporate history

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See also: Florida Power & Light § History

NextEra Energy traces its origins to 1925 with the formation of Florida Power & Light and the formation of FPL Group in 1984.[10][11]

The company purchased Colonial Penn in 1985[12] and sold it in 1991.[13] In 1998, FPL Group created FPL Energy, a subsidiary to manage FPL Group efforts outside of FPL's service area.[12] The same year, the company moved to acquire 37 power stations in Maine, Massachusetts, and New Jersey.[14] After a federal ruling would have limited the company's access to the New England power grid, FPL Group attempted to break off its purchase agreement in Maine,[15] but ultimately completed the purchase in March 1999.[16]

Through the early 2000s, FPL Group was the subject of multiple merger discussions, including with Iberdrola,[17][18] Entergy,[19] and Constellation Energy.[20]

In 2005, FPL Group acquired Gexa Energy.[12]

The Environmental Protection Agency recognized FPL Group for achieving its goal to reduce its emissions by 21 percent per kilowatt hour in 2008.[21] The FPL Group Foundation, the company's philanthropic arm, donated $1 million to the Salvation Army in 2009 to help customers in danger of having service turned off pay their power bills.[22] The following year, FPL Group rebranded as NextEra Energy. At the time, it provided power in 28 states and Canada.[12]

NextEra Energy subsidiary New Hampshire Transmission (NHT) reached a $6.8 million settlement with the Federal Energy Regulatory Commission (FERC) in 2016 after charging customers for the development of an electric power transmission project that was not approved.[23][24] During the 2016 Republican Party presidential primaries, NextEra Energy donated $1 million to a super PAC supporting Jeb Bush's candidacy.[25]

Mergers and acquisitions

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In June 2005, FPL Energy, a subsidiary of FPL Group, acquired Houston-based Gexa Energy in June 2005 for $80.6 million.[26]

On December 4, 2014, NextEra Energy announced its plans to purchase Hawaiian Electric Industries for $4.3 billion.[27] However, in July 2016, Hawaii's Public Utilities Commission rejected the offer in a 2-0 vote over doubts of NextEra Energy's commitment to the state's renewable energy goal, which terminated the merger agreement.[28] The proposed merger had support from over 25 local groups, including the Hawaii State AFL–CIO and the Hawaii Chamber of Commerce.[29]

NextEra Energy and Energy Future Holdings, parent company of Texas-based utility Oncor Electric Delivery, reached a $18.7 billion merger agreement on July 29, 2016, but the agreement was terminated in July 2017 after the Texas Public Utility Commission rejected the offer over disagreement on the control of Oncor's board of directors. Two other competing bids were submitted in July 2017 for purchasing Oncor, including a $17.5 billion bid from Berkshire Hathaway Energy and a $18.5 billion bid from Elliott Management Corporation.[30]

In January 2018, NextEra Energy expressed interest with members of the South Carolina Senate over a possible purchase of SCANA and Santee Cooper. Dominion Energy offered $14.6 billion to buy SCANA, but South Carolina lawmakers harshly criticized the proposal over a lack of future taxpayer relief.[31] In February 2018, NextEra Energy floated a $15.9 billion proposal to buy Santee Cooper and briefed South Carolina lawmakers.[32]

In May 2018, NextEra Energy announced that it planned to buy Gulf Power Company, the largest electricity producer in Northwest Florida, from Southern Company in a $6.4 billion deal, pending approval from regulators.[33] The acquisition, which expanded NextEra Energy's combined residential customer base in Florida to approximately 51 percent of the state's population and also included Florida City Gas, was completed on January 1, 2019.

Corporate affairs

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Litigation

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In 2018, NextEra Energy and Entergy left the Nuclear Energy Institute.[34] In February of that year, it filed a lawsuit against the Institute alleging that the trade group had inappropriately cut off its access to a database of nuclear power workers. The lawsuit stated NEE disagreed with the Institute's priorities and that the trade group was advocating for policies that would be damaging to NextEra Energy's business; it also alleged the group was extorting NextEra Energy for $860,000 to regain access to the database. The Institute called the allegations "baseless".[35] A judge in Florida rejected NEE's claims in September 2018.[36]

In June 2018, the United States Court of Appeals for the Eleventh Circuit rejected NextEra Energy's claim for a $97 million tax deduction for $200 million paid in contract fees to the federal government toward the Nuclear Waste Fund. NextEra Energy sought to deduct payments made between 2003 and 2010 for "the disposal of radioactive waste produced by nuclear power plants".[37]

In August 2018, NextEra Energy received a cease and desist order by Oklahoma state officials concerning the construction of wind turbines violating a state law intended to protect open air space. The law requires that developers obtain appropriate permitting from the Federal Aviation Administration or the United States Department of Defense. NextEra Energy had filed obstruction evaluation cases for the construction of wind turbines in Oklahoma with the FAA in March 2018, but the FAA had yet to issue determinations at the time that the cease and desist order was issued.[38] The construction of the wind farm was cancelled in May 2019.[39]

In 2022, NextEra paid $8 million for the deaths of over 150 eagles at wind farms missing eagle permits.[40]

Criticism

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Avangrid transmission line project

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In 2021, NextEra was accused of lobbying heavily against a transmission line project proposed by Avangrid, Inc. The 145-mile line, to be known as New England Clean Energy Connect (NECEC), would have delivered hydroelectric power from Quebec to utilities in Massachusetts and Maine.[41] In a complaint to federal regulators, the rival company said NextEra had “taken every opportunity, both in the open and behind the scenes, to oppose, delay, and derail” the project, including funding opposition groups because the hydropower would have provided competition to NextEra's oil-fired power plant in Yarmouth.[42] “In doing so,” Avangrid wrote, “NextEra is purposely trying to thwart the goals of Maine and Massachusetts to obtain more renewable power.”[43] According to Daily Energy Insider, Avangrid had obtained every regulatory approval required at the state and federal levels, and the project was supported by Maine Gov. Janet Mills, Massachusetts Gov. Charlie Baker, U.S. Energy Secretary Jennifer Granholm, and the stateʻs major newspapers.[44] In November 2021, the voters of Maine approved a ballot initiative to prohibit construction of the $1 billion transmission line project, which had been represented as a choice between clean energy and the protection of pristine woodlands.[45]

Solar power ballot initiatives

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NextEra Energy has backed failed ballot amendment campaigns to impose fees and barriers to installations of rooftop solar panels. In 2016, Florida Power & Light, which is a subsidiary of NextEra Energy, joined forces with Devon Energy, and Tampa Electric Company.[46] As a group they spent $20 million promoting a failed ballot initiative in Florida that would have curbed rooftop solar installations. It drew criticism from Al Gore. “Over the last several years, NextEra has been very aggressive against customer-owned solar,” says Alissa Schafer, a researcher with the Energy and Policy Institute, a clean energy advocacy group.[43]

In 2021, investigative reporting by the Miami Herald revealed that NextEra Energy had lobbied Florida legislators to undermine rooftop solar by preventing homeowners and businesses to engage in net metering (selling excess power back to FPL).[47] NextEra Energy made a $10,000 donation to Women Building the Future, drafted a bill, had their lobbyist deliver the bill to Florida legislator Jennifer Bradley, and subsequently donated $10,000 to her re-election campaign.[48] “This is a tired tactic that utilities have used to maintain their monopoly grip on electricity markets,” said Will Giese, southeast regional director for the Solar Energy Industries Association.[49] Opponents of the legislation claim that if such bills pass, the fast-growing green power industry would quickly start to collapse.[50]

Florida legislature candidates

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In 2021, investigative reporting by the Orlando Sun Sentinel revealed that FPL funded political consultants more than $3 million to promote "ghost" spoiler candidates in key Florida legislature races. The spoiler candidates were on the ballot as a no-party option and were intended to confuse voters and dilute support for the Democratic candidate in each race.[47][51] The accomplice named "Rodriguez" ran as a sham candidate and siphoned away votes from the Democratic candidate, also named Rodriguez. The mailing campaign employed the language of the Democratic candidate and had the accomplice focusing on fixing health care, and fighting climate change, all paid for by new, out-of-state political committees.[52] The Democrats lost by a mere thirty two votes.[53] Former senator Frank Artiles and his accomplice were each charged with three third-degree felony charges related to violating campaign finance law, conspiracy to make campaign contributions in excess of legal limits, also making these excess contributions, and false swearing in connection to an election.[54]

Artiles has for years associated with Florida utilities, including NextEra and its subsidiary FPL. Artiles obtained over $30,000 in political contributions from Florida utilities throughout his time in office, which included a direct contribution of $6,000 from NextEra. Veterans for Conservative Principles, his political committee, accepted close to $13,000 from NextEra.[52] Prior to his resignation from the Florida Senate in April 2017,[55] Artiles fast-tracked pro-utility bills as former chairman of the Florida Senate’s Communications, Energy and Public Utilities Committee, including a bill that would have permitted NextEra to charge its fracking costs to Florida ratepayers.[52]

In 2018, Senator Keith Perry won re-election against Democrat Kayser Enneking by around 2,000 votes, due to independent Charles Goston pulling votes away from Enneking. According to the Sentinel, FPL donated $14.15 million to a political ad nonprofit whose consultants were connected to one of the groups that paid for Goston's ads.[56] FPL has also donated $20,000 to Perry’s political committee, Building a Prosperous Florida. The year before, Perry voted in support of NextEra’s exploratory fracking legislation while serving on the committee chaired by Artiles. Perry has accepted $13,500 in direct political donations from Florida utilities, including $1,000 from NextEra, according to campaign finance filings.[52]

Environmental issues

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In 2007, Florida's Public Service Commission rejected a plan by NextEra Energy to build a coal-burning power plant on 5,000 acres (20 km2) in Moore Haven, Florida, near the Everglades National Park. The National Park Service raised concerns that the coal plant would contaminate Lake Okeechobee with mercury and harm the Everglades.[57][58]

References

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  1. ^ "SEC Form 10-K". U.S. Securities and Exchange Commission. February 16, 2024. Retrieved March 9, 2024.
  2. ^ "Board of Directors". NextEra Energy. Retrieved October 20, 2024.
  3. ^ "Our Leadership". NextEra Energy. Retrieved October 30, 2024.
  4. ^ a b c "NextEra Energy, Inc. – United States Securities and Exchange Commission Annual Report, Form 10-K (2020)". NextEra Energy, Inc. Archived from the original on July 9, 2021. Retrieved July 4, 2021.
  5. ^ "Company Information". NextEra Energy, Inc. Archived from the original on June 13, 2017. Retrieved March 17, 2018.
  6. ^ [1], Yahoo Finance.
  7. ^ a b "Our Subsidiaries". NextEra Energy, Inc. Archived from the original on March 17, 2018. Retrieved March 17, 2018.
  8. ^ Nicholas, Simon (February 16, 2018). "World's #1 Renewable Energy Installer, NextEra, Powers on with Renewables Despite Trump". CleanTechnica. Archived from the original on July 2, 2018. Retrieved July 1, 2018.
  9. ^ "Fortune 500 Companies 2018". Archived from the original on January 15, 2019. Retrieved March 18, 2019.
  10. ^ "SEC Form 10-K". U.S. Securities and Exchange Commission. 2018. pp. 4–5. Retrieved August 23, 2023.
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  12. ^ a b c d Salisbury, Susan (March 21, 2010). "Juno-based FPL Group to become NextEra Energy". The Palm Beach Post. Archived from the original on March 11, 2016. Retrieved June 8, 2023.
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  15. ^ Hillman, Leslie (March 11, 1999). "FPL in court today". Sun Sentinel. Archived from the original on February 11, 2022. Retrieved June 8, 2023.
  16. ^ Norris, John (March 15, 1999). "FPL Energy Closes on Maine Power Plants". Natural Gas Intelligence. Retrieved June 8, 2023.
  17. ^ Deogun, Nikhil; Vitzthum, Carlta; Smith, Rebecca (March 27, 2000). "Spain's Iberdrola Is in Discussions To Acquire Florida Utility Parent". The Wall Street Journal. Retrieved June 8, 2023.
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  19. ^ Sidel, Robin (April 3, 2001). "FPL, Entergy Blame Each Other As They Call Off $8 Billion Merger". The Wall Street Journal. Retrieved June 8, 2023.
  20. ^ Humer, Caroline (January 18, 2007). "FPL, Constellation scrap $12.5 billion merger". Reuters. Retrieved June 8, 2023.
  21. ^ Dorschner, John (October 10, 2008). "FPL Group lauded for lowering greenhouse emissions". Miami Herald.
  22. ^ Mundy, Michelle (January 26, 2009). "Program helps families facing power shutoff". Port St. Lucie News.
  23. ^ "New Hampshire Transmission to Refund New England Ratepayers $6.8 Million". Massachusetts Office of the Attorney General. May 26, 2016. Retrieved August 30, 2023.
  24. ^ Martinez, Joel (May 26, 2016). "Electric customers wrongfully charged can expect refunds". WWLP. Retrieved August 30, 2023.
  25. ^ "Million-Dollar Donors in the 2016 Presidential Race". The New York Times. February 9, 2016. Retrieved June 8, 2023.
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  28. ^ Staff Writer (July 18, 2016). "NextEra Ends Merger Deal, Will Pay Hawaiian Electric $95 Million". The Honolulu Star-Advertiser. Archived from the original on March 17, 2018. Retrieved March 17, 2018.
  29. ^ Staff Writer (November 30, 2015). "Support for Proposed Merger of NextEra Energy and Hawaiian Electric Industries Grows". Maui Electric. Archived from the original on March 18, 2018. Retrieved March 17, 2018.
  30. ^ Hurtibise, Ron (July 10, 2017). "Texas Utility Formally Ends $18.7 Billion Merger with NextEra Energy". The Sun-Sentinel. Archived from the original on March 18, 2018. Retrieved March 17, 2018.
  31. ^ Staff Writer (January 26, 2018). "#NukeGate: SC Senator in Talks With NextEra Energy". FITSNews. Archived from the original on March 18, 2018. Retrieved March 17, 2018.
  32. ^ Wilks, Avery G. (February 15, 2018). "NextEra Energy Floats $15.9 Billion Proposal to Buy Santee Cooper after Nuclear Fiasco". The State. Archived from the original on July 3, 2018. Retrieved July 3, 2018.
  33. ^ Klas, Mary Ellen (May 23, 2018). "FPL Parent Wants to Expand its Florida Footprint with New Purchase". The Miami Herald. Archived from the original on July 3, 2018. Retrieved July 3, 2018.
  34. ^ Pierobon, Jim (January 18, 2018). "Two utilities withdraw from leading nuclear energy trade group". Southeast Energy News. Energy News Network. Archived from the original on January 19, 2018. Retrieved June 8, 2023.
  35. ^ Pyper, Julia (February 5, 2018). "NextEra Sues NEI, Citing Efforts to 'Distort Electric Energy Markets'". Greentech Media. Retrieved August 30, 2023.
  36. ^ "Judge sides with nuclear group in FPL dispute". December 12, 2018. Retrieved August 30, 2023.
  37. ^ Tucker, Katheryn (June 29, 2018). "11th Circuit Shuts Down $97M Tax Refund for NextEra". Fulton County Daily Report. Archived from the original on July 2, 2018. Retrieved July 2, 2018.
  38. ^ Cameron, Alex (September 7, 2018). "NextEra Energy Receives Cease and Desist Order After Violating OK Law". News 9 Now. Archived from the original on September 25, 2018. Retrieved September 25, 2018.
  39. ^ Money, Jack (May 18, 2019). "NextEra Energy Resources scraps wind farm plans because of airspace concerns". The Oklahoman. Retrieved June 18, 2024.
  40. ^ "A wind energy company has pleaded guilty after killing at least 150 eagles". NPR. April 6, 2022. Retrieved September 2, 2024.
  41. ^ Kovaleski, Dave (November 3, 2021). "Maine voters reject plan to complete transmission line, Avangrid subsidiaries file suit". Daily Energy Insider. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  42. ^ Piper, Jessica (October 18, 2021). "Fact-checking the most misleading claims on both sides of the CMP corridor debate". Bangor Daily News. Archived from the original on October 18, 2021. Retrieved October 18, 2021.
  43. ^ a b Baker, David R. (December 3, 2020). "America's Greenest Energy Giant Isn't Trying to Save the Planet". BloombergQuint. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  44. ^ "Kovaleski op cit".
  45. ^ "Maine voters reject Quebec hydropower transmission line". Reuters. November 3, 2021. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  46. ^ "Blocking Rooftop Solar | U.S. PIRG". uspirg.org. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  47. ^ a b "Florida's largest electric utility conspired against solar power, documents show". Tampa Bay Times. Archived from the original on January 28, 2022. Retrieved January 28, 2022.
  48. ^ Floodlight, Mary Ellen Klas for the Miami Herald and Mario Alejandro Ariza for (December 20, 2021). "Revealed: the Florida power company pushing legislation to slow rooftop solar". The Guardian. Archived from the original on February 10, 2022. Retrieved February 11, 2022.
  49. ^ "Florida's largest electric utility conspired against solar power, documents show". Tampa Bay Times. Archived from the original on February 2, 2022. Retrieved February 11, 2022.
  50. ^ Steve Contorno (January 23, 2022). "Could Florida turn off the sun? Advocates say a utility-backed bill imperils rooftop solar in the Sunshine State". CNN. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  51. ^ "Florida Power & Light execs worked closely with consultants behind 'ghost' candidate scheme, records reveal | Special Report". Orlando Sun Sentinel. 2021. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  52. ^ a b c d "NextEra, Florida utilities closely aligned with election fraud suspect Frank Artiles". Energy and Policy Institute. March 26, 2021. Archived from the original on February 11, 2022. Retrieved February 11, 2022. Text was copied from this source, which is available under a Creative Commons Attribution 3.0 (CC BY 3.0) Archived February 23, 2011, at the Wayback Machine license.
  53. ^ "Ex-Florida senator Artiles paid no-party candidate more than $40K, arrest warrant charges". Tampa Bay Times. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  54. ^ "Frank Artiles Charged with Campaign Finance Violations". Florida Political Review. March 31, 2021. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  55. ^ Iannelli, Jerry. "Artiles Still Spending Campaign Money After Resigning for Racial Slur". Miami New Times. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  56. ^ Skolnik, Jon (December 11, 2021). "Mystery of Florida's "ghost" candidates grows: Major energy company linked to GOP scheme". Salon. Archived from the original on February 11, 2022. Retrieved February 11, 2022.
  57. ^ "State: PSC bars coal-fired plant". February 18, 2008. Archived from the original on February 18, 2008. Retrieved March 12, 2022.
  58. ^ Hollis, Mark (May 18, 2007). "Groups oppose coal-powered FPL plant". Sun-Sentinel. Archived from the original on March 11, 2016. Retrieved March 9, 2016.
[edit]
  • Official website
  • Business data for NextEra Energy, Inc.:
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