NextEra Energy Inc. 's ( NEE ) business wing
Florida Power & Light ("FPL") announced the conclusion of its
large-scale modernization program at the Turkey Point Unit 4 and
St. Lucie nuclear power facilities located in Miami-Dade County and
St Lucie County, respectively.
It took the company five years to complete the plant upgrades.
The last to complete the modernization work was Turkey Unit 4 and
was linked to Florida's power grid yesterday.
The generation capacity from the upgrade of these plants reached
over 500 megawatts ("MW"), exceeding the prior projection of 399 MW
made at the end of 2012. The "extended power uprates" as the
upgrades are called involved installation of 38,000 (over seven
miles) electric wiring conduit, roughly 16,000 linear feet of pipe
which translates to about three miles and 288,500 feet (over 50
miles) of power cables.
In 2012, NextEra Energy completed the modernization of Turkey
Unit 3, St Lucie 1 and 2. The company's investments in nuclear
energy are expected to result in major advantages in terms of fuel
cost savings and low-emissions. Customers in Florida will thus
enjoy lower electricity bills on the back of these considerable
The savings from the first year of operation is estimated to be
over $100 million from fossil fuels, which will definitely be
passed on to customers in the guise of lower bills. As of now, the
company's power prices are 26% below the national average. Further,
the program will help in reducing 33 million tons of greenhouse gas
Currently, the company charges $95 to an average residential
customer consuming 1,000 Kilowatt-hours (kWh), which includes a
nuclear cost recovery rate of $1.65 (5 cents per day). With the
present nuclear upgrade coming into effect, NextEra plans to cut
the nuclear cost recovery rates to about 50 cents equivalent to
less than 2 cents per day in 2014.
In early Mar 2013, NextEra Energy disclosed its plans to invest
$200 million for equipping its power infrastructure against severe
storms as well as improve service reliability.
NextEra Energy's diversified assets enable the company to
maintain a stable revenue position. The housing construction market
in Florida is expected to gain traction which will lead to increase
in power demand. In this light the upgrade work on its nuclear
assets seems timely. These upgrades are also anticipated to enhance
operational quality which will lead to customer retention.
NextEra Energy at present maintains a Zacks Rank #3 (Hold).
Other utility stocks that look attractive and are worth
accumulating now are Brookfield Infrastructures Partners
L.P. ( BIP
), Pike Electric Corp. ( PIKE ) and
Empresa Nacional Electricidad SA ( EOC ). All these are
Zacks Rank #1(Strong Buy) stocks.
Headquartered in Juno Beach, FL, NextEra Energy Inc. is a public
utility holding company engaged in the generation, transmission,
distribution and sale of electric energy.BROOKFIELD INFR (BIP): Free Stock Analysis
ReportENDESA-CHILE (EOC): Free Stock Analysis ReportNEXTERA ENERGY (NEE): Free Stock Analysis
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