NextEra Energy Inc., the company waiting on regulatory approval to buy Hawaii’s largest electrical utility, said Thursday its first-quarter profit dipped 2 percent from the year-earlier period after increased investments in renewables and natural-gas pipelines.
The Florida-based company posted earnings of $636 million, or $1.37 a share, compared with $650 million, or $1.45 a share.
Revenue in the quarter totaled $3.8 billion, down from $4.1 billion a year ago.
NextEra offered to buy Hawaiian Electric Industries — parent company of Hawaiian Electric Co., Maui Electric Co. and Hawaii Electric Light Co. — for $4.3 billion in December 2014. The state Public Utilities Commission is reviewing the application. HEI and NextEra said that the purchase agreement expires June 3. State regulators have said they do not view that as a deadline for their decision.
NextEra has two principal subsidiaries: Florida Power & Light and NextEra Energy Resources. First-quarter profit for NextEra Energy Resources, the energy resources development subsidiary of NextEra, was $224 million, or 48 cents a share, a decline from $280 million, or 62 cents a share, in the year-earlier quarter.
“NextEra Energy Resources is well positioned to capitalize on what we believe is one of the best environments for renewables development in recent history,” said Jim Robo, chairman and chief executive officer of NextEra Energy.
During the first quarter NextEra Energy Resources signed contracts for approximately 250 megawatts of wind in the United States for delivery after 2016. Earlier in April the company finalized the purchase of a 100-megawatt wind facility in New Mexico.
Over the last decade NextEra Energy Resources invested roughly $23 billion in wind and solar generation. In 2015 the business signed contracts for approximately 2,100 megawatts of new renewables projects.
The company said with the additions and the purchase of the New Mexico wind facility, NextEra Energy Resources’ total 2015-2016 renewables development is more than 4,000 megawatts.
Florida Power & Light is a rate-regulated electric utility that serves 4.8 million customers in Florida. FPL reported first-quarter net income of $393 million, or 85 cents a share, up from $359 million, or 80 cents a share, for the prior-year quarter. FPL’s first-quarter retail sales increased 0.4 percent year over year, due in part to a leap year day in 2016.
“FPL performed well during the quarter, with growth driven primarily by investments in the business to further strengthen its customer value proposition,” Robo said.
During the quarter, the utility requested a base rate adjustment that would increase customer bills by 2.8 percent every year from January 2016 through 2020.
FPL said the increase would allow for more investments to modernize its power plant system and improve the reliability and resilience of its grid for customers.
