Florida-based large-scale utility company NextEra Energy
Resources LLC, a business wing of
NextEra Energy Inc.
), brought online its Limon I and II wind energy programs in
Denver, Colorado. NextEra joined forces with Colorado major,
Xcel Energy Inc.
) in a long-term agreement to sell all the power from the twin
The facility owned and run by NextEra Energy has a total
generating capacity of 400 megawatt (MW) which constitutes dual
200-MW projects covering an area of 55,000 acres in the Arapahoe,
Elbert and Lincoln counties. A single facility comprises of wind
turbines of 125 GE 1.6-MW capacities. Apart from this, the
company constructed a 345 Kilovolt transmission line to connect
the wind farms to the Missile Site substation in Arapahoe.
The Limon facilities are NextEra Energy's fourth and fifth
wind projects and are part of the company's mammoth 1,500 MW U.S.
wind program. The aggregate installed capacity generation from
these projects stands at 975 MW which is expected to power around
450,000 homes in Colorado on an average. The completion of the
1,500 MW program will bring NextEra's overall wind portfolio to
approximately 10,000 MW by year-end 2012.
NextEra engaged more than 300 workers during the peak
construction period and estimates generation of roughly $130
million in state, local tax payments and royalties from this
program within the first 25 years. The Limon endeavors will
provide low-cost and clean energy services in the Colorado
communities. Along with this, the programs are expected to
contribute positively to the indigenous economy by creating job
We believe this long run arrangement will bode well with
NextEra Energy's future business development goals. The company's
consistent growth-via-investment strategy in renewables will spur
near term top-line as usage of green energy is expected to
increase in the U.S. market in the coming years.
However, strong weather variations and uncertainty associated
with cases related to airline tariff and proposed implementation
of market rates on petroleum products could partially offset
NextEra Energy maintained its earnings expectation for 2012,
in the range of $4.35−$4.65 per share. Similarly, the company
upheld its pro forma earnings expectation for 2014 in the band
$5.05−$5.65 per share.
The Zacks Consensus Estimates for the fourth quarter and full
year 2012 currently stand at 94 cents per share and $4.52 per
share, respectively. Its main competitor is
Teco Energy Inc.
The company has a Zacks #3 Rank (Hold rating). Headquartered
in Tampa, the company through its subsidiaries engages in the
generation, transmission, distribution, and sale of electric
energy in the United States and Canada.
NEXTERA ENERGY (NEE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
XCEL ENERGY INC (XEL): Free Stock Analysis
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