NextEra Energy, Inc. (NEE): Business Model Canvas [Dec-2025 Updated]

You're looking at how NextEra Energy, Inc. (NEE) manages its unique two-part strategy: using the predictable cash flow from its regulated Florida utility to fuel one of the world's largest clean energy build-outs. Honestly, it's a masterclass in balancing stability with aggressive growth, especially as they target a massive $74.6 billion capital deployment from 2025-2029 while the Florida Power & Light (FPL) segment alone expects $9.3 billion to $9.8 billion in capital expenditures just for 2025. This Business Model Canvas breaks down exactly how they line up their key partnerships, like those with Microsoft and NVIDIA, their diverse revenue streams from regulated sales and long-term Power Purchase Agreements (PPAs), and the critical resources that let them capture the exponential energy demand from AI hyperscalers. Dive in to see the precise structure behind this energy giant's engine.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel NextEra Energy, Inc.'s massive growth engine, especially as power demand from AI explodes. These partnerships are how the company secures capital, technology, and long-term revenue certainty. Honestly, it's a complex web, but the numbers tell a clear story about scale.

AI Infrastructure Partnership with Microsoft, NVIDIA, BlackRock

NextEra Energy, Inc. is actively collaborating with the AI Infrastructure Partnership (AIP) to scale up the energy solutions needed for data centers. AIP, which includes BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX, expanded in March 2025 to include NVIDIA and xAI. NextEra Energy, alongside GE Vernova, works with AIP to accelerate the delivery of critical and diverse energy solutions for these AI facilities. The initial goal for AIP was to unlock $30 billion in capital from investors and corporations, which is projected to mobilize up to $100 billion in total investment potential when factoring in debt financing. NextEra Energy, the world's top provider of wind energy, is key in providing the necessary clean power capacity.

• AIP initial capital target: $30 billion.
• Total potential mobilization with debt: up to $100 billion.
• NextEra Energy, Inc. role: Accelerate scaling of diverse energy solutions.

Long-term Power Purchase Agreement (PPA) counterparties like Google, Entergy

The regulated utility, Florida Power & Light Company (FPL), serves approximately 5.9 million customer accounts, or over 12 million people in Florida. For NextEra Energy Resources (NEER), the competitive clean energy business, revenue stability comes from long-term contracted investments. These contracts primarily have an average counterparty credit rating of A-, based on S&P's methodology, and are designed to provide predictable cash flows. While specific details on PPA counterparties like Google or Entergy aren't in the latest public filings, the overall structure is built on securing long-term sales with creditworthy off-takers. The renewables and storage backlog of signed contracts stood at 27.7 GW as of April 23, 2025.

NextEra Energy Partners, LP, which focuses on acquiring these contracted assets, previously reported having 85 customers across 30 states with an average remaining contract life of approximately 14 years.

Equipment suppliers for wind turbines, solar panels, and battery storage

NextEra Energy, Inc. maintains long-term strategic relationships with equipment providers and secures supplies well in advance to manage supply chain risks. The company fully sources its wind turbines within the U.S. and has secured contracts to source batteries domestically for a significant portion of its backlog. To mitigate tariff risks, NextEra estimates less than $150 million in tariff exposure through 2028, against a consolidated capital expenditure (capex) forecast exceeding $85 billion over 2025-2027. The renewables division added 8.7 GW of new renewables and storage projects in 2025 alone, showing the scale of equipment procurement required.

Here's a quick look at the capital allocation supporting these equipment needs for 2025:

Financial institutions for tax equity and project-specific non-recourse debt

Access to capital markets for both corporate credit and project finance remains strong for NextEra Energy, Inc. As of March 31, 2025, the company reported $18.4 billion in net available liquidity, excluding nonrecourse project financing. Committed corporate credit facilities for NextEra Energy and FPL aggregated to approximately $22.3 billion at that same date. The company's conservative use of debt is reflected in its adjusted debt as a percentage of total capitalization, which stood at 49% as of September 30, 2025, the lowest among its key peers listed in one analysis. Should the transferability of federal tax credits change, NextEra Energy plans to lean on its established relationships with tax equity investors to fund its growth pipeline.

For context on the debt structure, FPL's Total Debt as of September 30, 2025, was $28,420 million, with $26,271 million being long-term debt.

GE Vernova for natural gas-fired power generation projects

NextEra Energy, Inc. has a framework agreement with GE Vernova to speed up the development of natural gas turbine projects, which will be co-owned. These projects are specifically aimed at serving large load customers, like data centers, and are expected to generate multiple gigawatts of power. The development timeline is lengthy; CEO John Ketchum noted that completion for these new gas plants could extend to 2030, contrasting with the 12 to 18 months for wind and solar projects. This partnership is designed to provide integrated solutions combining gas-fired generation with renewables and storage to ensure baseload reliability.

• Gas plant completion target: Potentially by 2030.
• GE Vernova role: Providing natural gas combustion turbine generators and supply chain planning.
• Expected output: Multiple gigawatts of power generation capacity.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Key Activities

You're looking at the core engine driving NextEra Energy, Inc. (NEE) right now-the sheer volume of work required to keep both the regulated utility and the competitive clean energy business running and growing. This isn't just about flipping switches; it's about massive, multi-year execution plans.

Large-scale capital deployment, targeting $74.6 billion from 2025-2029

NextEra Energy, Inc. is executing on a massive capital plan, projecting a total capital expenditure (CapEx) of $74.65 billion between 2025 and 2029. This deployment is split between the regulated utility and the competitive renewables arm, which is where the real growth is targeted.

Here's the quick math on the planned CapEx allocation for that five-year period:

• Florida Power & Light (FPL) Grid Modernization: $49.61 billion total CapEx.
• NextEra Energy Resources (NEER) Clean Energy Buildout: Earmarking $25.04 billion over the same period.

The NEER segment, specifically, has a plan to invest roughly $50 billion from 2025 through 2029 to scale its clean energy portfolio.

Developing and constructing massive wind, solar, and battery storage projects

The development pipeline is the lifeblood of the NextEra Energy Resources segment. They are actively building out a portfolio designed to meet surging demand, particularly from data centers and AI infrastructure.

The current development visibility is substantial, anchored by a large backlog of signed contracts:

For FPL, the activity involves a strategic shift in its generation mix. Its Ten-Year Site Plan projects that solar will comprise approximately 35% of all energy produced across the FPL system by 2034, up from 9% in 2024.

Operating and maintaining a regulated electric grid in Florida (FPL)

Operating the regulated utility, Florida Power & Light (FPL), is a key activity focused on reliability for a rapidly growing service area. FPL is America's largest electric utility by sales volume.

Key operational statistics for FPL include:

• Customer Accounts: Over 6.0 MM.
• People Served: Approximately 12 million.
• Q2 2025 Net Income: $1.275 billion.
• Q2 2025 Earnings Per Share (EPS): $0.62 per share.

This segment benefits from stable demand in Florida and a constructive regulatory environment that allows for rate base growth. For instance, FPL's regulatory capital employed grew by approximately 8.1% year-over-year in Q1 2025.

Securing long-term Power Purchase Agreements (PPAs) for energy sales

For NextEra Energy Resources, securing long-term Power Purchase Agreements (PPAs) is the primary activity for locking in predictable, contracted revenue streams. This de-risks the massive capital deployment in competitive markets.

The company is using these agreements to secure long-term off-takes for its diverse generation fleet. A notable example is the plan to restart the Duane Arnold nuclear facility under a 25-year PPA with Google, specifically targeting 24/7 clean power for data centers.

The revenue profile of NEER shows the impact of this strategy, though it can be volatile based on contract timing. Operating revenues were $9.7 billion in 2023 before declining to $7.5 billion in 2024.

Regulatory engagement with the Florida Public Service Commission

Constant engagement with the Florida Public Service Commission (FPSC) is critical for FPL to recover its investments and earn a regulated return. This involves filing and negotiating multi-year rate cases.

The most recent major activity was the FPSC approval of a multi-year base rate settlement on November 20, 2025, which is effective from January 2026 through at least December 2029.

Key terms from this regulatory settlement include:

• Base Rate Increase (2026): $945 million annualized retail base revenue.
• Base Rate Increase (2027): An additional $705 million annualized retail base revenue.
• Authorized Regulatory Return on Equity (ROE): 10.95%, within a 9.95% - 11.95% band.
• Assumed Equity Ratio: 59.6%.
• Solar and Battery Rate Adjustment (SoBRA): Mechanism to recover costs for solar projects in 2027-2029 and storage projects in 2028-2029.

This settlement implies an estimated average annual increase in total customer bills of approximately 2.5% from 2025 through the end of 2029. Finance: draft 13-week cash view by Friday.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Key Resources

You're looking at the core assets that power NextEra Energy, Inc.'s entire operation; these are the tangible and intangible things they absolutely must have to deliver power and grow. Honestly, the scale of these resources is what sets NextEra Energy apart from nearly everyone else.

Nearly 30 GW renewables and storage project backlog as of late 2025

The development pipeline remains massive, showing the company's commitment to future capacity additions. This backlog is the contracted future revenue stream you want to see.

• Renewables and storage backlog of signed contracts was 27.7 GW as of April 23, 2025.
• NextEra Energy Resources expanded its renewables backlog to 29.5 GW as of July 23, 2025.
• The total backlog was reported near 30 GW in mid-2025.
• The backlog totaled 29.6 GW after accounting for more than 1.7 GW of projects placed into service as of October 28, 2025.
• Approximately 6 GW of the backlog is specifically for technology and data center customers.
• The company aims to add 36.5 GW to 46.5 GW of new renewables and storage projects between 2024 and 2027.

Extensive regulated transmission and distribution infrastructure in Florida

This is the bedrock of stable earnings, primarily through Florida Power & Light Company (FPL). It's the infrastructure that keeps the lights on reliably for millions.

FPL operates nearly 91,000 circuit miles of transmission and distribution lines and 921 substations to serve its customers. The company plans capital investments of between $9.3 billion and $9.8 billion for FPL in the full year 2025. Over the 2025-2029 period, NextEra plans to invest $21.68 billion to expand these T&D lines further. FPL's regulatory capital employed grew from $66.0 billion in Q1 2024 to $71.4 billion in Q1 2025.

Strong investment-grade credit rating for low-cost capital access

Maintaining top-tier credit ratings is crucial because it directly translates to lower borrowing costs for funding those massive capital programs. You don't build a clean energy giant on expensive debt.

Committed corporate credit facilities for NextEra Energy and FPL aggregated to approximately $22.3 billion as of March 31, 2025. Net available liquidity stood at $18.4 billion as of March 31, 2025.

Large portfolio of operating wind, solar, and nuclear generation assets

This is the existing fleet that generates current cash flow and provides the foundation for future contracted growth. NextEra Energy Resources is the world's largest operator of wind and solar projects.

As of January 24, 2025, NextEra Energy Resources had approximately 36 GW of generation and storage capacity in operation. The 2024 net generation mix for NEER was:

• Wind: 64%
• Nuclear: 19%
• Solar: 17%

NextEra Energy manages seven commercial-scale nuclear reactors across Florida, New Hampshire, and Wisconsin. The company also has approximately 26 GW of Gas capacity and ~6 GW of Nuclear capacity listed in a September 2025 presentation.

Proprietary site control and development pipeline across North America

This is the intangible asset-the data, technology, and land control that feeds the massive backlog. It's how they find the best sites faster than competitors.

NextEra Energy Resources uses proprietary data and technology to evaluate over 30+ MM land clusters per night on approximately 100 attributes for project siting. Their solar panel allocation algorithm optimizes over 200 MM scenarios annually to deploy about 20 MM solar panels. The company operates the largest drone fleet in the industry, completing 145,000 flights yearly. NextEra plans to invest approximately $50 billion from 2025-2029 to add more than 25 GW of new generation and storage by 2034. Finance: draft 13-week cash view by Friday.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Value Propositions

Low-cost, high-reliability electricity for Florida's growing population

Florida Power & Light (FPL), NextEra Energy, Inc.'s regulated utility, provides power to about 12 million people across Florida. You can expect predictable returns from this segment, which is supported by a constructive regulatory framework. The Q3 2025 adjusted earnings per share (EPS) for FPL was $0.71, with FPL earnings improving to $1.4 billion in that quarter.

The approved 2025 base rate settlement locks in substantial revenue visibility for FPL, with annualized retail base revenue increases of $945 million beginning January 1, 2026, and an additional $705 million starting January 1, 2027. FPL is expanding its rate base at roughly 8% annually, supported by a projected customer base growth of approximately 335,000 accounts through 2029. Still, typical FPL residential bills remain about 20% below the national average when adjusted for inflation compared to 20 years ago.

Scalable, long-term contracted clean energy for corporate and utility clients

NextEra Energy Resources, the non-regulated arm, focuses on long-term contracted renewable generation. The company's backlog of signed contracts for renewables and storage stood at 27.7 GW as of April 23, 2025. By the end of Q3 2025, this backlog had grown to nearly 29.6 GW after adding 3 GW of new renewables and storage in that quarter alone. Management plans to develop between 36.5 GW and 46.5 GW of renewable and battery storage projects over the 2024-2027 period. Adjusted EBITDA from regulated and contracted businesses is expected to make up 90% to 95% of total consolidated EBITDA over the next three years.

• Record addition of 3.2 GW in new renewables and storage in Q1 2025.
• Landmark agreement with Entergy for up to 4.5 GW of solar and energy storage.
• Agreements signed for over 3 GW of renewables, including an 860-MW deal with Google.
• Aim to operate a 70-gigawatt generation and storage portfolio by 2027.

Grid stability and resilience via Battery Energy Storage Systems (BESS)

NextEra Energy is making substantial capital commitments to BESS to firm up its renewable portfolio and ensure grid reliability. NextEra Energy Resources added 8.7 GW of new renewables and storage projects in 2025. For 2025, NextEra Energy Resources invested $7.33 billion in solar and solar-plus-battery storage projects. The company secured a $301 million deal for 6.3 GWh of energy storage system (ESS) batteries. The strategy includes FPL planning to deploy 7.6 gigawatts of battery storage over the next decade.

Enabling the exponential energy demand of hyperscalers and AI data centers

The value proposition here is becoming the go-to provider for power-hungry digital infrastructure. Estimates suggest U.S. data centers could require an additional 22.5 to 30 gigawatts (GW) of energy by 2030. NextEra Energy has a massive $74 billion investment plan earmarked for clean energy and storage, explicitly targeting this AI-driven demand. The company's Q1 2025 record addition of 3.2 GW in new capacity was directly aimed at this burgeoning demand. A key example is the 25-year nuclear power purchase agreement (PPA) with Google, which accelerates the Duane Arnold restart, a project expected to add about $0.16 to annual EPS once operational.

Predictable, regulated returns from the Florida Power & Light (FPL) rate base

The regulated utility business provides a foundation of stable, predictable returns. The authorized regulatory ROE for FPL is set at 10.95%, with a defined band of 9.95% to 11.95%, and a regulatory equity ratio of 59.6%. Management reaffirmed an adjusted EPS growth outlook for NextEra Energy of 6-8% through 2027. The Q3 2025 adjusted EPS for the entire company was $1.13, up 9.7% year-over-year.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Customer Relationships

You're looking at how NextEra Energy, Inc. manages its two very different customer bases: the regulated residential/commercial base served by Florida Power & Light (FPL) and the wholesale/contracted customers of NextEra Energy Resources (NEER). The relationship style is fundamentally different for each.

Regulated relationship with FPL customers via public service commission oversight

For Florida Power & Light (FPL), the relationship is strictly defined by the Florida Public Service Commission (PSC) oversight. This structure dictates rate recovery and service standards. FPL is America's largest electric utility, serving approximately 6.0 MM customer accounts or about 12 million people across Florida as of late 2024. The current regulatory relationship is shaped by FPL's 2025 base rate proceeding filing, which requests base rate adjustments of approximately $1.6 billion in 2026 and $0.9 billion for 2027. If approved, this plan targets an estimated average annual increase in total customer bills of approximately 2.5% from January 2025 through the end of 2029. This regulated environment also mandates high performance; FPL's distribution service reliability was 59% better than the national average in 2024.

The relationship is also defined by managing growth and investment recovery:

• FPL added about 275,000 customers since 2021.
• The utility expects to add about 335,000 more customers through the end of 2029.
• Smart-grid devices helped avoid 2.7 million customer outages across 2024.
• The company plans to invest approximately $50 billion from 2025-2029.

Dedicated account management for large-scale wholesale customers (NEER)

NextEra Energy Resources (NEER) deals with sophisticated, large-scale wholesale customers like utilities, municipalities, and major corporations, often centered around long-term Power Purchase Agreements (PPAs). This requires dedicated account management, focusing on customized energy solutions rather than standard service delivery. NEER is the '#1 originator for U.S. power and commercial & industrial customers'. The company is actively growing its contracted portfolio, adding 3.2 gigawatts (GW) to its backlog in the second quarter of 2025 alone.

Here's a look at the scale of these wholesale relationships:

Long-term, contract-based relationships with PPA counterparties

The core of the NEER relationship model is the long-term, fixed-rate contract, which provides revenue predictability for NextEra Energy, Inc. and helps counterparties meet their own sustainability goals. These are not month-to-month arrangements; they are multi-year commitments. For example, a recent PPA with Nucor Corporation supports a solar project expected to begin commercial operation in December 2025. These non-regulated assets generate predictable revenue backed by these long-term, fixed-rate contracts. The commitment to long-term contracted investments is a key feature of the business model.

Automated digital self-service tools for FPL residential customers

For the millions of FPL residential customers, the relationship leans heavily on digital self-service to manage routine interactions efficiently. While specific usage statistics for digital tools aren't provided, the focus on technology is clear through reliability metrics. Customers use digital channels to track outages and manage accounts, which supports the utility's efficiency goals. The company's commitment to technology is evident in its investment plans, including adding new solar generation with cost recovery through programs like SolarTogether®, a voluntary community solar program where participants pay a fixed monthly subscription charge.

Proactive communication during storm preparation and restoration

When severe weather hits, the relationship shifts to urgent, proactive communication to manage expectations and demonstrate rapid response. Following Hurricane Milton in October 2024, FPL restored power to more than 1.9 million customers, which was over 95% of those impacted, utilizing a restoration workforce of 20,000 men and women from 41 states and Canada. Just prior to that, after Hurricane Helene in September 2024, FPL restored power to 93% of affected customers within 24 hours of the storm exiting the state, restoring over 634,000 customers. Even in August 2024, during Hurricane Debby, smart grid technology helped avoid nearly 85,000 outages while crews restored power to nearly 250,000 customers.

Here's a snapshot of recent storm response performance:

• Hurricane Milton (Oct 2024): Restored power to over 95% of 1.9 million impacted customers.
• Hurricane Helene (Sep 2024): Restored 93% of affected customers within 24 hours of storm exit.
• Hurricane Debby (Aug 2024): Avoided nearly 85,000 outages via smart grid tech.

Finance: draft 13-week cash view by Friday.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Channels

Regulated transmission and distribution grid to Florida end-users (FPL)

Florida Power & Light Company, America's largest electric utility, delivers power through its regulated grid infrastructure. This channel serves more than 6 million customer accounts, which equates to approximately 12 million people across nearly half of Florida. The operational scale includes approximately 36 gigawatts (GW) of owned generating capacity. To maintain and expand this service, FPL operates nearly 91,000 circuit miles of transmission and distribution lines, supported by 921 substations. The capital plan for this channel includes investing approximately $21.7 billion through 2029 on T&D infrastructure. For Q3 2025, FPL's earnings per share (EPS) reached $0.71. The utility's revenue for Q2 2025 was up 7.3% year-over-year, totaling $4.71 billion. FPL's rate base is expected to expand at roughly 8% annually.

Direct long-term Power Purchase Agreements (PPAs) with wholesale buyers

NextEra Energy Resources (NEER) utilizes direct, long-term PPAs as a primary channel to wholesale buyers, including corporations and other utilities. The renewables and storage backlog stood at nearly 29.6 GW as of the latest reports. In Q2 2025 alone, NEER added 3.2 gigawatts of new renewables and storage capacity to this backlog. This segment reported earnings of $1.27 billion with an EPS of $0.62 in Q3 2025. Revenue from the NextEra Energy Resources unit jumped 16.4% year-over-year in Q2 2025, reaching $1.91 billion. The company is executing on long-term contracts, such as a landmark agreement for up to 4.5 GW with Entergy and a 25-year PPA with Google for the restarted Duane Arnold nuclear facility.

Interconnection points to regional transmission organizations (RTOs)

NextEra Energy Transmission is a competitive transmission company facilitating the movement of power from generation sources, including NEER's renewables, to various markets. The transmission business has a backlog exceeding 25 GW and a total renewables and storage pipeline of ~300 GW. The build-out of high-voltage transmission lines is critical for connecting resource-rich regions to high-demand markets served by RTOs. NEER's operations span 49 U.S. states and four Canadian provinces, indicating a vast network of interconnection points across multiple RTOs and independent system operators.

NextEra Energy Resources' direct sales team for corporate clients

The direct sales effort targets large Commercial & Industrial (C&I) customers, with a significant focus on the technology and data center sector. Approximately 6 GW of the current backlog is specifically earmarked for these technology and data center customers, including AI-focused hyperscalers. Over the last 12 months, the company originated approximately 12.7 GW of new renewables and battery storage projects, much of which is secured via direct sales channels. Strong C&I demand is creating valuable recontracting opportunities for assets with PPAs expiring between 2030 and 2035.

Digital platforms for customer billing and outage reporting

The regulated utility channel, FPL, manages billing and outage reporting for its 6 million customer accounts through its digital platforms. NextEra Energy is actively engaged in digital transformation strategies and innovation programs. The company has utilized AI solutions, such as partnering with HData, to enhance regulatory analytics for its competitive business.

• FPL Customer Accounts: >6 million accounts.
• Digital Focus: Insights into digital transformation strategies and innovation programs.
• Technology Partnership Example: HData for regulatory analytics.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Customer Segments

You're looking at the customer base for NextEra Energy, Inc. as of late 2025. It's a split operation: the regulated utility side serving Florida, and the competitive energy resources arm serving wholesale and corporate buyers across North America. Honestly, the numbers show where the immediate growth engine is firing.

Regulated residential, commercial, and industrial customers in Florida

This is the Florida Power & Light (FPL) segment. They are the bedrock of the company's stability. FPL is the largest electric utility in the U.S. by retail megawatt-hour sales. You need to know the scale here to appreciate the cash flow predictability.

• FPL serves more than 6 million customer accounts.
• This represents approximately 12 million people across Florida.
• FPL's Q1 2025 net income was $1.316 billion.
• For Q2 2025, FPL segment net income rose to $2.028 billion.
• FPL's Q1 2025 revenue reached $3.99 billion.
• The utility has about 36 gigawatts (GW) of generation capacity.
• FPL is planning for approximately 352,000 new customer accounts in 2026.

Large-scale wholesale energy buyers and utilities across North America

NextEra Energy Resources (NEER) handles this. They are selling power, often from renewables, to other utilities and large entities. Their pipeline growth is the key metric here, showing future contracted revenue.

• NEER's total backlog of signed renewable and storage contracts was roughly 28 GW as of Q1 2025.
• In Q1 2025 alone, NEER added about 3.2 GW to this backlog.
• NEER reported Q1 2025 revenue of $2.16 billion.
• Adjusted earnings for NEER in Q1 2025 were $908 million.

Hyperscalers and technology companies demanding clean power

This group falls under NEER's wholesale buyers, but their demand is driving specific project development. They want clean power fast, and NEER is structuring deals to meet that urgency.

• NEER added over 1 gigawatt (GW) of capacity specifically for hyperscalers in Q2 2025 backlog additions.
• The overall development plan targets 36.5 GW to 46.5 GW of renewable and battery storage projects between 2024-2027.

Financial investors seeking tax equity in renewable energy projects

While not direct power customers, financial partners are crucial for funding the massive capital deployment. These transactions often involve selling stakes to realize tax benefits, like the one with Blackstone.

Here's a look at the scale of investment and a relevant transaction:

Government and military installations requiring reliable, clean power

This segment is served through the broader wholesale and regulated utility contracts, but specific, publicly itemized contract values for military bases weren't readily available in the latest disclosures. Still, the overall commitment to grid modernization and reliability supports this need.

The core customer segmentation financial snapshot looks like this:

Finance: draft 13-week cash view by Friday.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that power NextEra Energy, Inc.'s massive operations, which is definitely a capital-intensive game. The cost structure is dominated by the need to constantly fund growth and maintain a vast, complex asset base across Florida Power & Light (FPL) and NextEra Energy Resources (NEER).

Massive capital expenditures, FPL projected at $9.3 billion to $9.8 billion in 2025

The sheer scale of investment required to serve Florida's growing population is a primary cost driver. For the full year 2025, Florida Power & Light projects its capital investments to land between $9.3 billion and $9.8 billion. This spending supports grid modernization, storm hardening, and new generation capacity, including solar and battery storage. For context, FPL's capital expenditures for the third quarter of 2025 alone were approximately $2.5 billion.

High interest expense and debt service costs on long-term debt

Financing this growth means carrying significant debt. As of September 30, 2025, NextEra Energy's long-term debt stood at $84.17 billion. This level of leverage translates directly into substantial interest costs. For the three months ending September 2025, the reported Interest Expense on Debt was $1.153 billion (based on the $-1,153 Mil figure reported for that quarter). The company's net debt to EBITDA ratio was reported at 6.4 as of July 1, 2025, indicating a heavy debt load that requires careful management.

Fuel and purchased power costs for generation and grid balancing

While NextEra Energy Resources leans heavily on contracted renewables, FPL still relies on fuel and purchased power, though costs are largely recoverable. For the third quarter of 2025, the combined Fuel, purchased power and interchange expense across FPL and NEER was $1,423 million. FPL utilizes cost recovery clauses to pass substantially all fuel and purchased power costs directly to customers, which matches the cost with related revenue when billed. Still, market volatility, like the forecasted 59% year-over-year increase in natural gas prices from 2024 to 2025, remains a risk factor, even with hedging.

Operations and maintenance (O&M) expenses for a large asset base

Running and maintaining the utility and renewable generation fleets requires consistent O&M spending. The total operating expenses for NextEra Energy for the twelve months ending September 30, 2025, reached $18.665 billion. The specific Operations and Maintenance component for the third quarter of 2025 was significant:

This table shows the quarterly breakdown for Other operations and maintenance expenses for the period ending September 30, 2025.

Regulatory compliance and depreciation of energy assets

Depreciation is a non-cash cost reflecting the aging and utilization of the utility's physical assets, while regulatory compliance costs cover items like environmental mandates. Depreciation and amortization is a major line item, as seen in the third quarter of 2025:

The regulatory environment in Florida is generally viewed as supportive, allowing for timely cost recovery. For instance, FPL is requesting rate increases of approximately $1.55 billion in 2026 and $927 million in 2027 through rate cases and the Solar and Battery Base Rate Adjustment (SoBRA) mechanism, which helps recover costs for investments and compliance efforts.

You should review the full quarterly breakdown for a complete picture of operating costs:

• For the three months ended September 30, 2025, Total operating expenses - net were $5,582 million.
• The Fuel, purchased power and interchange cost for Q3 2025 was $1,423 million.
• Other operations and maintenance for Q3 2025 totaled $1,410 million.
• Depreciation and amortization for Q3 2025 was $2,096 million.
• Taxes other than income taxes and other - net for Q3 2025 totaled $653 million.

Finance: draft 13-week cash view by Friday.

NextEra Energy, Inc. (NEE) - Canvas Business Model: Revenue Streams

You're looking at the core ways NextEra Energy, Inc. brings in cash as of late 2025. The largest piece comes from its regulated utility, Florida Power & Light (FPL). FPL brought in $3.99 billion in revenue just in the first quarter of 2025. This revenue is directly tied to the recovery of capital investments through the regulated rate base, which is a key driver for FPL's earnings growth. To support this, FPL spent approximately $2.4 billion in capital expenditures during that same quarter. The regulatory capital employed for FPL grew by about 8.1% year-over-year as of Q1 2025. Also, FPL has proposed base rate adjustments of roughly $1.6 billion in 2026 and $0.9 billion for 2027 to continue recovering these requirements.

Here's a quick look at the top-line revenue components from the first quarter of 2025:

NextEra Energy Resources (NEER), the competitive arm, generates substantial revenue through long-term contracted energy sales via Power Purchase Agreements (PPAs). For Q1 2025, NEER reported revenue of $2.16 billion. This business focuses heavily on securing long-term contracted renewable generation. The company is actively growing its development pipeline; in Q1 2025, NEER added about 3.2 gigawatts of new renewables and storage projects to its backlog, bringing the total backlog to roughly 28 gigawatts. This growth is supported by the expectation that current federal tax structures, like those from the Inflation Reduction Act, will continue.

Other revenue components flow through the segments:

• NextEra Energy Transmission contributed $0.01 to the adjusted Earnings Per Share (EPS) breakdown for Energy Resources in Q1 2025.
• The regulated business mix, driven by FPL rate base growth and new FERC-regulated transmission investments, is estimated to make up about 75% of NextEra's EBITDA in 2024, staying in the upper half of the 70% to 75% range through 2027.
• The company continues to secure new Federal Energy Regulatory Commission-regulated transmission investments.

Finance: review the impact of the proposed 2026/2027 base rate adjustments on next quarter's regulatory asset recovery forecast by end of next month.