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Unregulated Business Drove NextEra Energy’s 3Q15 Revenues

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NextEra Energy’s 3Q15 revenues

NextEra Energy (NEE) reported $5.0 billion in revenues in 3Q15, up 6.4% from 3Q14’s $4.7 billion. Revenues also came in higher than the analysts’ estimates of $4.9 billion. Warmer weather across the US during 3Q15 helped boost demand for electricity for cooling, which positively impacted NextEra Energy’s 3Q15 revenues.

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Florida Power and Light (or FPL)

While NextEra Energy’s 3Q15 revenues saw a substantial uptick, revenues of its regulated arm, FPL, dropped marginally to $3.27 billion in 3Q15 from $3.32 billion in 3Q14.

  • Retail base – FPL’s base revenues increased marginally to $1.6 billion in 3Q15 compared to $1.6 billion in 3Q14. The number of customers rose by 1.4% and average usage per customer rose by 1.2%, resulting in higher retail base revenues.
  • Fuel cost recovery – Fuel cost recovery revenues refer to pass-through of fuel costs. FPL’s fuel cost recovery revenues dropped to $1.08 billion in 3Q15 compared to $1.12 billion in 3Q14 due to lower fuel costs during the quarter.
  • Others – Other revenues dropped to $587 million in 3Q15 compared to $627 million in 3Q14.

NextEra Energy Resources (or NEER)

NEER was the driving factor behind growth in NextEra Energy’s 3Q15 revenues. NEER’s revenues came in at $1.6 billion in 3Q15 compared to $1.2 billion in 3Q14. The company added 1,401 megawatts of wind assets (FAN) and 386 megawatts of solar assets during or after 3Q14, leading to the substantial increase in revenues in 3Q15.

NEE’s regional peer, Southern Company (SO), also reported an increase in 3Q15 revenues.

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