Nextera Energy Inc Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shahriar Pourreza - Guggenheim Securities, LLC - Analyst : Just real quick, just on the development expectations, big step-up in '27 with NEER CapEx, I guess, we're asking what's driving that? Do you have any data center demand in those numbers? And then, maybe how does that big step-up play into that 6% to 8% as we roll forward our models into '28? Could it be equated to the 8% given the shape that you sort of highlight, or is there some offsetting factors we should be thinking about? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Let me go ahead and start, and then I'll turn it over to Rebecca. The way I think about it, Shahr, is that first of all, had we held this conference last year, we would have seen similar numbers through 2026. There already was a lot of demand through 2026. This new power demand is resulting in new conversations. And those new conversations have really occurred over the last three to six months. But I'll use the data center as an example. A data center customer comes to NextEra and says, we're looking for an opportunity to build a new facility. And when you start from scratch, you've got to pick a site, you've got to get it permitted, you've got to get it built. How long does that take? Two to three years. That's why we're saying that with this new power demand that's coming, those conversations, yes, they are occurring all over the place. We have significant opportunities. We've got to realize whether it's a data center or somebody building a manufacturing facility -- I'll use a chip manufacturer as an example. Those don't get built overnight. They don't need power until they go COD. And so what we're saying is that the COD years of a lot of that power demand that's coming really starts in 2027, which means, and that's how we've set up our expectations. You can see that with the CapEx that's really escalating from '26 to '27 on the last slide that Rebecca wrapped up on because we see those COD dates coming in '27. And then beyond that, now all of a sudden, we've got a twofold opportunity. Remember, we've always been in a replacement cycle where our business has been based on replacing less efficient, higher cost generation. This is the first time in a long time where we're actually having conversations with customers about actually accommodating new growth and new growth demand. So as you add those two together, this creates a lot of opportunity as you get out once those new facilities that are driving that new growth demand actually get built, go into service, and need power. And yes, the outlook over the long term is substantial for us. Rebecca?

Question: Shahriar Pourreza - Guggenheim Securities, LLC - Analyst : And then just lastly, NEP is obviously noticeably missing from your slide decks. Brian talked about sort of non-core assets, optimization opportunities. I guess where does NEP fit within -- could it fit within those buckets? Any updates there? How are negotiations going with sort of the convert investors? Thanks. John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Thanks, Shahr. On NEP, I think we've been very open. We don't have to do anything this year in 2024. We actually have modest growth plans for '25 as well. And so we continue to look at all alternatives for NEP, and we want to do what's right by unitholders, what makes the most sense for NEP. But I think the point Brian was making on the slide is, we have a modest amount of capital recycling opportunity that we see through 2027. We have plenty of ways to get that done. We are not concerned. There are all kinds of folks, and we've seen this over the last six months to a year that would love to hitch their wagon to Energy Resources as a private capital recycling source, for example. So we feel very good about where we are.