Florida Power & Light Company (FPL), a subsidiary of public utility holding company, NextEra Energy, Inc. NEE, received the green signal from Florida Public Service Commission to build a 1,633 megawatt (”MW”) clean energy center in Okeechobee County.
FPL intends to invest nearly $1.3 billion in this high-efficiency power plant which will be powered by U.S-produced natural gas. The plant is expected to be the most cost-effective and energy-efficient way of serving the state’s growing population.
On receipt of the remaining approvals and permits, the Okeechobee facility will begin construction in 2017, with the goal of going online by Jun 2019.
FPL uses natural gas to generate close to 70 % of the electricity it sells to its 4.8 million customers across nearly half of the state of Florida.
FPL, which has been making substantial investments in clean energy, stated that the Okeechobee plant is part of a series of projects undertaken to modernize the energy grid by investing in fuel-efficient power generation while phasing out older, less fuel-efficient facilities using coal and oil. The goal is to rely more on U.S.-produced natural gas, zero-emission nuclear and solar energy. This would help to lower emissions and adhere to the various environmental mandates.
The company is on track with its Port Everglades Clean Energy Center with expected commencement in mid 2016. The construction of three large-scale solar energy centers, each with a capacity of 74 MW, is underway and should be completed in 2016. The company took over Cedar Bay Generating Plant in the third quarter of 2015.
With production largely outplaying demand, natural gas prices have hit record lows. This is enabling utilities to exploit the low prices and provide low-cost, cleaner sources of power. Natural gas prices are not expected to rally anytime soon in view of the production glut.
Zacks Rank
NextEra Energy carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the same industry are Abengoa Yield plc ABY, sporting a Zacks Rank #1 (Strong Buy), and Northwestern Corporation NWE and FirstEnergy Corp. FE, both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report NEXTERA ENERGY (NEE): Free Stock Analysis Report FIRSTENERGY CP (FE): Free Stock Analysis Report NORTHWESTERN CP (NWE): Free Stock Analysis Report ABENGOA YIELD (ABY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research