NextEra's FPL utility proposes plan to refund $400M to customers

Sep. 23, 2022 9:29 AM ETNextEra Energy, Inc. (NEE)By: Carl Surran, SA News Editor

Power lines and sunset landscape

Gargolas/iStock via Getty Images

NextEra Energy (NYSE:NEE) -1.1% pre-market Friday after its Florida Power & Light unit said it plans to refund nearly $400M in federal tax savings to its 5.8M utility customers.

FPL said the savings are the result of a federal production tax credit for the development of solar energy centers, which the company is building across Florida as part of the largest solar expansion in the U.S.

The utility said it will provide a one-time $25M refund in January and phase in nearly $360M in additional federal tax savings during 2023-25.

FPL's 2022-25 rate agreement, which was approved last year by state regulators, includes a provision that accounts for changes to federal tax law, which the company said will facilitate the quick implementation of bill adjustments over the remainder of FPL's rate agreement.

Given the massive investments needed toward NextEra Energy's (NEE) long-term renewables strategy, "at its current valuations, buy at your own peril," JR Research writes in a bearish analysis published recently on Seeking Alpha.

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