Florida Power & Light Company, a subsidiary of NextEra Energy Inc. (NEE), announced that its customers can install solar-powered upgrades to their homes and businesses at lower rates from June 21 via a new pilot program approved by Florida Public Service Commission.
Florida Power & Light Company stated the rebates will be offered on a first-come, first-served basis for residential and business customers.
Moreover, through its net-metering program, Florida Power & Light will connect the customers' solar photovoltaic systems to the electric grid. Customers would receive a credit for the electricity they produce but do not consume.
These new solar incentives are part of Florida Power & Light’s expansive energy-efficiency program.The unit’s initiatives to save energy helped it to avoid building 13 medium-sized power plants over the past three decades.
Florida Power & Light is also taking initiatives to install solar water heaters in new construction for low-income families. Moreover, it intends to build at least one Next Generation Solar Education Station in 28 school districts throughout Florida.
In the first quarter of 2011, Florida Power & Light registered revenue of $2.2 billion, down 3.5% year over year. Despite an annualized growth in the customer base and an increase in average price, lower revenue resulted from a 12.4% reduction in energy sales to residential consumers. The new solar incentives are thus expected to ease the top-line pressure at the segment in future.
NextEra’s first quarter 2011 operating earnings came in at 94 cents per share, below the Zacks Consensus Estimate but at par with the year-ago quarter. The company raised 2011 earnings guidance to a range of $4.35 to $4.65 per from the prior range of $4.25 to $4.55 per share. NextEra also expects earnings to grow at an average rate of 5% to 7% from 2011 through 2014.
The Zacks Consensus Estimate for second-quarter 2011 is $1.06 per share. For full years 2011 and 2012, the Zacks Consensus Estimates are, respectively, $4.46 per share and $4.74 per share.
We maintain our Neutral rating on NextEra Energy Inc. The quantitative Zacks #3 Rank (short term Hold rating) on the stock indicates no clear directional pressure on the shares over the near term.
Based in Juno Beach, Florida, NextEra Energy Inc., through its subsidiaries, engages in the generation, transmission, distribution and sale of electric energy in Florida. In competes with Progress Energy Inc. (PGN).
NEXTERA ENERGY (NEE): Free Stock Analysis Report
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