NextEra Energy, Inc. (NYSE:NEE) Q2 2016 Earnings Conference Call - Preliminary Transcript

Jul 27, 2016 • 09:00 am ET

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NextEra Energy, Inc. (NYSE:NEE) Q2 2016 Earnings Conference Call - Preliminary Transcript

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Q & A
Operator
Operator

Thank you very much, sir. We will now take our next question from Stephen Byrd from Morgan Stanley. Please go ahead sir.

Analyst
Stephen Calder Byrd

Hi. Good morning.

Executive
John W. Ketchum

Good morning, Stephen.

Analyst
Stephen Calder Byrd

Wanted to discuss the repowering update you provided on the Wind business. It sounds like you're making some good progress. Could you give us a sense of what portion of your fleet would either be sufficiently old that it's run through the PTC or the elected the CITC. Is there a rough portion we should be thinking about that could potentially be eligible for repowering?

Executive
Armando Pimentel

Stephen, it's Armando. Obviously, a question that everybody wants to know so they can give some size to the program. I think what I can tell you is that it's a fair amount of our program that would be eligible for repowering. I'd say that anywhere from maybe 3 gigawatts to 4 gigawatts are potential repowering candidates. But what we say internally and what I want you and others to understand is, each one of these repowering projects that we're looking at is a whole new project, right? I mean, we've got to look at has the permitting changed, have the environmental regulations changed, what do the land leases look like, what discussions can we have with the customers, what do the old PPA's look like? If it's a merchant project, how comfortable are we with revenues and/or hedges that we have to take a look at. So, we've actually got a very large spreadsheet where we're looking at these projects, but I can tell you that in detail at this point, we've only looked at a very small amount of the projects that we feel comfortable with and most of what we are seeing, again, it's still very early because all of these things are just like their own mini projects. Most of what we're seeing, we think would likely go COD in 2019 and 2020.

There is obviously going to be a portion, if they work that are going to go in 2017 and 2018, and unfortunately it's going to probably be dribs and drabs like you have today when we announced these 327 megawatts, but a large portion of these look like, if they are going to make sense would be in 2019 and 2020. So a very small piece and we're very happy to announce it today, because it was -- certainly, it wasn't something that we were thinking about six months ago, but you'll probably continue to hear from us that, hey, this works and this doesn't work and so on.

Analyst
Stephen Calder Byrd

That's very helpful color, Armando. Thank you. And then just shifting over to natural gas infrastructure you've had good success in growing the business. From here, when you look out at additional growth opportunities in natural gas infrastructure, are there logical growth opportunities that you really need in the near term or should we be thinking that, while it's a great opportunity, it's going to progress over an extended period of time.