NextEra Energy, Inc.‘s (NEE) subsidiary Florida Power & Light Company announced its plans to invest more than $200 million in 2012 for strengthening its electrical infrastructure and upgrading emergency response systems.
Florida Power & Light Company’s investment efforts are directed towards strengthening its infrastructure against inclement weather and maintaining its reliability. The fund is primarily meant for upgrading its infrastructure and carry on with its several ongoing infrastructure maintenance works including pole inspections, system infrastructure hardening and storm preparedness initiatives.
The company has a long-term plan for development of electric generation and delivery processes, and plans to utilize around $9 billion for development projects in three years (2011-2013).
Florida Power & Light Company applied for a rate hike in January 2012, if approved will result in an increase in the monthly bill of a residential customers using 975 Kwh per month by $6.80 per month.
It is a regular practice for the regulated utility companies to recover their invested funds from consumers through rate hikes. We do believe the increment in monthly power bill stretches the budget of the consumers, but at the same these infrastructure development ensures uninterrupted electricity supply through out the year. We expect that the company might file for another rate increase in near future to recover the fresh infrastructural investment.
NextEra Energy is a well-managed, high-quality, regulated electric utility provider that serves high-growth areas of Florida. Looking ahead, we expect the company’s earnings growth to come from its investments in Florida’s utility infrastructure, and increasing wind and solar investments.
Juno Beach, Florida, based NextEra Energy Inc. is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The company has both regulated and non-regulated energy-related products and services, with operations in 28 states and Canada. The company mainly competes with TECO Energy, Inc. (TE) and Southern Company (SO).
NextEra Energy currently retains a Zacks #3 Rank (short-term Hold rating).
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