NextEra Energy, Inc. (NEE, Financial), through its wholly owned subsidiary Florida Power & Light Company (FPL), has announced its intention to initiate a base rate proceeding with the Florida Public Service Commission (FPSC) in early 2025. This strategic move aims to implement a new four-year rate plan starting January 2026, replacing the existing base rate settlement agreement that has been effective since 2022.
According to the formal notification filed on December 30, 2024, FPL anticipates requesting a general base annual revenue requirement increase of approximately $1.55 billion, effective January 2026. This will be followed by an additional annual increase of around $930 million, effective January 2027. The proposed plan also includes a request for a Solar and Battery Base Rate Adjustment (SoBRA) mechanism, which would allow FPL to recover costs associated with the development and operation of new solar and battery projects in 2028 and 2029, subject to FPSC review.
Furthermore, FPL intends to propose an allowed regulatory return on common equity midpoint of 11.9 percent, maintaining the equity ratio that has been approved in previous base rate cases. The formal request to initiate this base rate proceeding is expected to be filed on or around February 28, 2025.
This development marks a significant step for NextEra Energy (NEE, Financial) and its subsidiary, as they continue to adapt and expand their energy infrastructure to meet future demands. Investors and stakeholders will be closely monitoring the proceedings and the potential impacts on the company's financial performance and strategic direction.
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