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Today, NextEra Energy Inc . (NYSE:NEE) and its subsidiary Florida Power & Light Company (FPL) announced a filing with the Florida Public Service Commission (FPSC) requesting approval for a new four-year base rate plan, set to begin in January 2026. This plan would replace the current base rate settlement agreement in place since 2022.
The proposal outlines a series of base annual revenue requirement increases, starting with approximately $1.545 billion in January 2026 and followed by approximately $927 million in January 2027. Additionally, the plan introduces a Solar and Battery Base Rate Adjustment (SoBRA) to recover costs associated with the development of 1,490 megawatts of solar and 596 megawatts of battery storage projects in 2028, and 1,788 megawatts of solar and 596 megawatts of battery storage projects in 2029. With current revenue of $24.75 billion and an EBITDA of $13.12 billion, these proposed increases could significantly impact NextEra’s financial profile. For detailed financial analysis and more insights, check out the comprehensive Pro Research Report available on InvestingPro.
FPL’s proposal also seeks to implement a non-cash tax adjustment mechanism, akin to the depreciation reserve surplus mechanisms used in previous rate settlements. Moreover, it includes a storm cost recovery framework and a process to address potential tax law changes, similar to provisions in the 2021 rate agreement.
If the FPSC approves the proposed rate adjustments, FPL commits not to request further general base rate increases before January 2030. The requested increases are based on a regulatory return on common equity of 11.90% and the continuation of FPL’s regulatory capital structure, which has been approved in past rate cases.
The filing includes testimony and exhibits from FPL’s witnesses and the required FPSC schedules supporting the general base rate increases and charges for 2026 and 2027. Hearings on the base rate proceeding are anticipated in the third quarter of 2025, with a final decision expected in the fourth quarter of 2025. Based on InvestingPro’s Fair Value analysis, NextEra Energy is currently trading near its Fair Value, with analysts maintaining a positive outlook as reflected in their price targets. The platform offers 6 additional exclusive ProTips about NEE’s financial position and market performance.
NextEra Energy and FPL caution that the statements contained in the filing are forward-looking and subject to various risks and uncertainties. These include regulatory decisions, political and economic factors, and the potential impact of new laws and regulations, among others. The companies advise that actual future results may differ materially from current expectations due to these risks.
The information for this report is based on a press release statement.
In other recent news, NextEra Energy Inc. has announced a new four-year base rate plan for its subsidiary, Florida Power & Light Company, seeking approval from the Florida Public Service Commission. The plan proposes an increase in base annual revenue requirements by approximately $1.545 billion starting in January 2026 and an additional $927 million in January 2027. Meanwhile, NextEra Energy and Florida Power & Light completed a significant financial event with the sale of $2 billion in First Mortgage Bonds, divided into three series with varying maturities. In another financial move, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, issued $2.5 billion in junior subordinated debentures, marking a strategic step in its capital allocation plans.
Additionally, the company has raised its quarterly common stock dividend by 10% to $0.5665 per share, aligning with its plan to grow dividends annually by approximately 10% through at least 2026. These recent developments reflect the company’s ongoing efforts to manage its financial structure and support its growth strategies. The information regarding these activities has been disclosed in various filings with the Securities and Exchange Commission, ensuring transparency and regulatory compliance.
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