NextEra: Buy America’s Biggest Renewables Company On FP&L Drama


  • On January 24th, the stock of renewables pioneer NextEra – now the U.S.’s largest utility company – dropped 8.8% on news the head of its FP&L unit was retiring.
  • The retirement and subsequent stock drop came on the heels of a Bloomberg report that the company had violated Florida’s campaign finance laws.
  • While NextEra refutes the allegations, even if true, a ~$14.5 billion haircut to the company’s market cap is arguably an overreaction.
  • Shares are a Buy based on a diverse portfolio of power-generating assets, a leading position in renewables, and perfectly positioned to receive a lion’s share of IRA Act tax credits.

Photo of FPL Florida Power and Light solar trees at Young Circle Arts Park Hollywood FL

Florida Power and Light solar trees at Young Circle Arts Park in Hollywood FL

felixmizioznikov/iStock Editorial via Getty Images

In late January, the stock of renewables pioneer NextEra (NYSE:NEE) took a big haircut (see below) on news that Florida Power & Light’s

Data by YCharts

FP&L Metrics


NEE Transmission Growth Projects


Data by YCharts

Disclosure: I/we have a beneficial long position in the shares of XLU, VOO, QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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