NextEra Energy’s return on equity
NextEra Energy’s (NEE) consolidated ROE (return on equity) has stayed above 12% for the past couple of quarters. This level is slightly higher than the authorized ROE of 11% and the industry average of 10%, thanks to NEE’s non-utility segments. Notably, non-utility segments are FERC (Federal Energy Regulatory Commission) regulated and generally fetch higher ROE.
By comparison, American Electric Power (AEP) has one of the most geographically diversified utility operations in the US and fetches ROE of above 10%. WEC Energy Group’s (WEC) ROE is 12.7%, which is one of the highest in the industry.
But how does NextEra measure up in terms of credit profile? Continue to the next part to find out.