NextEra Energy, Inc. (NYSE:NEE) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 09:00 am ET

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NextEra Energy, Inc. (NYSE:NEE) Q4 2019 Earnings Conference Call - Final Transcript

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Executive
James L. Robo

shareholder return of approximately 43%, significantly outperforming both the S&P 500 and the S&P 500 Utilities Index and continuing to outperform both indices in terms of total shareholder return on a one, three, five, seven, and 10 year basis. Over the past 15 years, we have outperformed all of the other companies in the S&P Utilities Index and 85% of the companies in the S&P 500, while more than tripling the total shareholder return of both indices.

Although we are proud of our long-term track record of creating shareholder value, we remain utterly focused on the future and committed to continuing that track record going forward.

During 2019, FPL successfully executed on its ongoing capital plan, including placing the highly efficient Okeechobee Clean Energy Center and an additional 300 megawatts of cost-effective solar in service on time and on budget. Smart capital investments such as these help FPL improve its already best-in-class customer value proposition despite customer bills that were already nearly 30% below the national average and among the lowest of all 54 electric providers in the state of Florida. Earlier this month, the typical FPL residential customer bill decreased by nearly $4 or roughly 4%. FPL had continued success with its cost savings initiatives, reducing its already best-in-class dollar per retail-megawatt-hour non-fuel O&M costs by more than 5% year-over-year.

These ongoing cost savings combined with the flexibility afforded by FPL's current settlement agreement enabled FPL to avoid a customer surcharge for the roughly $260 million of storm restoration costs related to Hurricane Dorian. In addition to low bills, FPL delivered its best-ever service reliability performance in 2019 and was recognized for the fourth time in five years as being the most reliable electric utility in the nation.

Finally, last quarter, we were pleased that following an extensive and thorough 18-month review, the Nuclear Regulatory Commission granted Turkey Point units 3 and 4 their second 20-year license extensions. These units are the first nuclear power plants in the United States to achieve this milestone and this decision supports the continued production of clean, zero-emission, reliable and affordable nuclear power in Florida for many years to come.

Beyond executing on its strategic initiatives, during 2019, FPL positioned itself well for continued long-term growth. Early in the year, FPL announced its groundbreaking 30-by-30 plan, which is one of the world's largest solar expansions and will result in roughly 10,000 megawatts of incremental solar capacity on FPL's solar system -- FPL system.

This solar expansion, combined with low-cost battery storage solutions such as the Manatee Energy Storage Center that was announced during 2019, represent the next phase of FPL's generation modernization efforts, and are expected to further reduce FPL's CO2 emissions rates, which is already among the lowest in the nation and has declined more than 30% since 2005. In addition to the terrific progress in generation, during the year, Florida past the Public Utility Storm Protection Plans law that allows for clause recovery of storm hardening investments, including undergrounding. This new