NextEra Energy Inc. (NEE) announced that subsidiary Florida Power&Light Co. (FPL) is selling its gas utility, Florida City Gas, for $923 million. The small gas utility has about 120,000 customers located mostly in southeastern Florida. Although NEE will lose the operating cash flow it receives from the utility after the sale, it can use the proceeds of over $920 million to reinvest in its operations. Given Florida City Gas' relatively smaller size, we expect this transaction will be credit neutral and that NEE's financial performance will consistently remain above our downgrade thresholds. Under our base-case forecast, we assume NEE's regulated utility business will consistently account for more than 70% of its consolidated EBITDA and that its funds from
