To contribute a little more toward protecting the environment, NextEra Energy, Inc.’s NEE primary subsidiary, Florida Power & Light Company (“FPL”), announced on Jul 2, 2015, its long-term investments to modernize its fleet of power plants.
FPL’s long-term vision rests upon two primary ideas – phasing out older and less-efficient generating units and adding highly efficient and cleaner energy centers.
In addition to its already existing Cape Canaveral and Riviera Beach combined-cycle facilities, the company has planned to add a new combined-cycle plant on company-owned property in northeastern Okeechobee County, FL. Subject to regulatory approvals, this facility is expected to enter into service by mid-2019.
This facility will complement FPL’s other major system improvement projects including three new large-scale solar power plants that are expected to come online by 2016 end.
Earlier, the company had announced its plan to acquire the 250-megawatt (“MW”) Cedar Bay Generating Plant in Jacksonville only to phase the plant out of service. The company considered the coal-fired facility operationally unviable from economic and environmental perspectives. Moreover, the company retired a 500 MW gas and oil-fired facility in Putnam County and a 400 MW gas and oil based unit in Miami-Dade County last year to enable cost savings.
Accomplishments
These large-scale investments are not only helping the company to meet additional load growth and provide cleaner energy but are also keeping the electric bills very low. The company’s electric rates are 30% below the national average.
Over the last decade and a half, the company has been able to cut down on its foreign oil usage by more than 99% (from more than 40 million barrels to less than 1 million barrels annually today), all made possible by its investments in high-efficiency, natural gas energy centers.
FPL has helped its customers save more than $7.5 billion on fuel costs and has prevented more than 85 million tons of carbon emissions.
Forecasts & Groundwork
FPL expects to increase its customer count to more than 10 million by 2019 from 4.8 million customers today. The company filed a 10-year forecast of future energy requirements with the Florida Public Service Commission where it projected that energy needs in Florida will significantly increase starting from 2019 and more so going beyond.
The three new large-scale solar plants currently underway at FPL are expected to be completed in 2016. The company’s most recent natural gas power plant modernization project – Port Everglades Next Generation Clean Energy Center – is progressing well with scheduled completion in mid-2016.
Zacks Rank
NextEra Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the electric utility space include Enersis S.A. ENI, sporting a Zacks Rank #1 (Strong Buy) and El Paso Electric Co. EE and Pinnacle West Capital Corporation PNW, carrying a Zacks Rank #2 (Buy).
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