NextEra Energy Stock

Next up, we've got NextEra. CEO, John Ketchum. John's got some comments and slides. He's kind enough to let me eat some lunch and watch him. And then we'll have...

Unfair, Steve. Unfair.

Don't go too fast. And then we'll have a discussion after.

So John, I'll turn it to you.

Okay. Terrific. Hey, great to be here, Steve. Thank you again for inviting us. Just a terrific conference you put on every year. Typical cautionaries, you are all familiar with, I won't spend a lot of time with that.

One of the things I want to talk about, and I'm sure Steve and I will spend a lot of time on this today, is if we all go back to December, you -- and really October, when I was up here last year, I said 2026 would be the year of execution for NextEra. And it has been. I'm proud to say we've really delivered against it. I'm going to talk a little bit about the 12 ways to grow that we put up at this conference last year, we talked a lot about in December.

But this slide really just deals with what we've been able to accomplish in the last 60 days. This is 60 days of performance. So since the Q2 call, we have 16 gigawatts now of federal hub opportunities, right? 10 gigawatts with the Japanese fund, and we already have $3.3 billion of capital in the door on those first 10 gigawatts. That's since the Q2 call.

We just announced yesterday, I was up in Washington, the Oval Office with the President and his Cabinet, we announced a 6.5 gigawatt opportunity that we're calling Project Star, the first project done with Korea and with the Department of Commerce. So that brings us to 16 gigawatts. I'm going to talk more about the federal hubs in a minute and I think some of the misconceptions that I see out there in the marketplace.

We also, since the Q2 call, announced 4.6 gigawatts at Paducah, with the Department of Energy. So that puts us at 20.5 gigawatts. Half of that Paducah opportunity is gas and the other half is storage. So if you put -- add up the tally on the gas build, 18 gigawatts, right?

To put that in perspective, the installed gas build at FPL today, which has the largest gas-fired generation in the United States, is 24 gigawatts, right? So in 60 days, we put up 18 gigawatts of gas opportunities with the federal government. Obviously, we have a very large pipeline behind that, 40 gigawatts of -- I mean, 40 data center hubs, which we'll talk more about later.

We also were able to recontract Point Beach, in a very attractive contract for us there. You can see the EPS contribution, which is very strong. Obtained a $2 billion loan from the Department of Energy for the recommissioning of Duane Arnold, which is going very well. I'm sure we'll talk more about that today as well. As you all know, we're recommissioning that plant. Google is the offtaker there on that facility; they will pay for 100% of the power generation.

And we also announced a 49% interest in a gas pipeline that's being built in Florida by Chesapeake. So that's just 60 days of hard work by the NextEra team.

And this is really tying out some of the accomplishments that we've seen since December. When you look at over the last 9 months, in addition to what I just mentioned, Florida Power & Light is executing on all cylinders. We had a very favorable rate settlement agreement that came out at the end of last year. We've had 9.3% regulatory capital employed growth at FPL. We've taken the large load growth estimate up in Florida from 6 gigawatts to 8 gigawatts. We continue to say that we'd be disappointed not to be announcing a large load deal in Florida by the end of the year.

We've had a lot of success too on the linear infrastructure program. So I mentioned the gas pipeline opportunity, but we've also brought forward 2 major transmission projects. So the CAGR that we had on the linear infrastructure, whether it's electric transmission or gas-fired -- or the gas pipeline business, was a 20% CAGR a year. Just in the first 9 months, we are already at a 25% CAGR for that business.

The renewable business continues to perform very well. We've already had roughly 7.5 gigawatts for renewables and storage. The demand we see in the market, extremely strong going forward. We've been able to recontract roughly 2 gigawatts of PPAs. We have an 8 gigawatt target as we look through 2032, making excellent progress there, being able to recontract into a much higher priced market across the board.

And the customer supply business continues to execute well with our acquisition of Symmetry. We're now the third largest gas marketer in the United States, third largest power marketer in the U.S. Those are skill sets that are really, really important when we think about meeting the demands of hyperscalers.

And we've had tremendous success on the artificial, or super intelligence, front across the board, and an extremely successful effort that we just had on our REWIRE initiative on how to leverage technology in a way unlike any company in this sector and to continue to design products that can be used by the utility industry across the board through our partnership with Google, which remains very strong, and that relationship has been terrific.

I said I wanted to spend a little bit of time on federal hubs just to address some misconceptions out there. So the message I want you to walk away with is this. We do not have to put $0.01 into these projects, not 1 penny. These projects are owned by the federal government and the country of Japan or the country of Korea, right, not NextEra. But we get fee income streams back. That fee income stream is roughly 50% of the adjusted EPS that we would earn if we built the gas plant on our own balance sheet. So we don't put -- not $0.01 of equity or capital goes into these projects, we get 50% of the EPS profile that we would get if we built these on our own.

So if we do the simple math on that and we say we have 16 gigawatts of federal hubs now secured, and we cut that in half based on the EPS contribution to 8 gigawatts, what I told you was our expectations back in December were 4 to 8 gigs of gas. We're already at the high end of that for 2032. If you add on the 2 gigawatts of gas for Paducah, that takes us to 10 gigawatts, we're already chipping away at 2033.

We've done that in just a short number of months. I would expect that there could be more opportunities to follow on the Department of Commerce and the Department of Energy front as we look to the future. And like I said before, we've had $3.3 billion of capital coming on the Japanese project, the first 10 gigawatts, we just got funded today. $2.4 billion on Project Star, which we announced yesterday. So these projects are moving forward.

I know there's a lot of focus from investors on, well, when are you going to get contracts on these? The way the federal government is looking at them is we're going to build these projects. The contracts will come.

Project Star, one of our partners is a leading DCO in the Related Companies. And that project is being built on Rod Lewis' land, who has been a partner of ours on the upstream side. So it's all on private land. That's where the data center will be built. That's also where the power generation will be built, right over an existing gas field. And the Anderson project right outside of Dallas, 5.2 gigawatts, our partner -- or one of our relationships there is with Comstock, who will provide the gas supply for that facility as well. So those projects are in good hands and are moving forward as we speak.

One of the things that we have not talked about, this is new news, is all these federal hubs, so these 16 gigawatts of federal hubs, we have all the rights to build the battery storage capacity that will serve these 3 hubs. These are not in our financial expectations. So there's a 6 to 11 gigawatt incremental battery storage build opportunity that is an upside to the existing forecast expectations that we have laid out for investors.

It's a bit of a busy slide, this is our 12 ways to grow. I've covered most of this. Your takeaway should be that we said we'd grow in 12 ways; we are growing in 12 ways. And we have made substantial progress against each of these metrics and targets that feed into our financial expectations as communicated back in December.

I want to switch gears and just talk a little bit about affordability. I know affordability is top of mind across the country, and we take great pride in driving very strong affordability for our customers, which is a message that we're bringing forward as part of the Virginia, South Carolina and North Carolina messaging around the Dominion combination.

So if you look at our bills in Florida, we've been accommodating growth for 20 years in the state, one of the fastest-growing states in the country, 14th largest economy in the free world if Florida were a country. Our bill today is actually 20% less than it was 20 years ago in real dollars. Our bill is 37% lower than national average. Our reliability is 60% better than national average. Our O&M on a dollar per megawatt hour basis is 70% lower than the industry average. And our O&M is 50% better than second best in the industry. And our customer service under J.D. Power's 2025 study is top decile.

So we don't cut corners. We deliver on affordability. We know how to leverage scale benefits. We know how to deliver affordability and reliability to customers. But we're doing it not only in Florida, we're now going to be doing it across all 50 states. We're going to do it in Virginia, we're going to do in South Carolina, we're going to do it in North Carolina.

And with the combination, I think it's just a great story. Moving from 110 gigawatts to roughly 240 gigawatts by 2032 is the expectation, doubling the -- more than doubling the size of the company with regulatory capital employed growth of roughly 11%, 9% plus adjusted EPS growth going forward, as filed in our S-4.

So as I look back at what we said to investors in December, I fast-forward to today, we are really performing and executing across the board on the 12 ways to grow, and we've added a combination that's day 1 accretive to shareholders on top of that.

And with that, Steve, I'll take your questions.

All right. Okay. Thanks, John. That was a great intro.

And so maybe just with the new news on the projects, with the gas projects and the scale of those projects, you could talk a little bit more about the -- so the earnings are basically kind of half of what you'd get. But is the cash flow maybe even better just because -- or is the cash flow -- because you're not adding any debt, so then cash flow to debt, and just the overall balance sheet of the company in that context?

Yes. No, that's right. I mean it inures to FFO. We don't have the financing cost. The resources that we put up against supporting these projects are paid for dollar for dollar under the structure of the transaction. And so from a cash flow standpoint, very strong contribution.

And the way to think about it is we get development fees, milestone fees for meeting certain requirements as we build. And then 2 pieces of operating fees once we go COD: one that's fixed, one that's variable.

And just as -- what -- compared to building plants yourself and the like, what risk do you take on, if any, in terms of these deals?

Yes. I mean these are not our projects, right? These are projects for the federal government and for the countries of Japan and Korea. So our obligation is to get them built. We put some of our fees at risk in terms of median milestones and certain operating requirements, but they're things that we're quite comfortable on our capability of achieving.

And then -- I'll get to in a minute. And then how did you -- what's your sense on kind of how you got chosen to do these? Just what drove that?

I think it's really reputational. And so when you look at the market today, I think one of the things that's really unusual about NextEra and where power demand is headed in this country is it requires more than ever a company that can participate and contribute and has experience in every part of the energy value chain. Because the requirements to provide solutions for customers at scale is different by customer, it's different by location, it's different by profile of what they want to achieve.

Some examples are, I mean, a lot of customers we talk to, they have a speed-to-power need, right? And a way to get them up and running very quickly is with solar and storage. And then once they're up and running with solar and storage, bring gas in behind it. But depending on where we're located, we might have to bring a gas pipeline and/or build new transmission.

They may, if it's a toll, we may need gas marketing capability, if we're needing to understand gas flows, on where to locate. Power marketing may be required for certain hedging requirements. Battery storage optimization with the software capabilities that we have and the edge that we have developed there, really, really important. All these combinations of skills are really critical to being able to deliver cost-effective solutions for hyperscalers.

And the other thing I would mention is, if you look at the FERC show cause order and you look at kind of where we are today, I think a lot of the way the market has evolved is if we look 3 or 4 years ago, there was a lot of excess capacity on the system. That's gone, right? That's been spoken for.

And so now what you're seeing is with the FERC show cause order and the focus and the doubling down by ISOs is, show me -- if you're going to build load, pair it with generation, right? And I'll look at the SPP model, right? Those have to be 2 substations away. That's already been approved by FERC. If that's the kind of the model or some subset of that structure that moves forward, it's going to become critically important that load and generation are working together early on.

The opportunity cost has never been higher on being wrong, right? So if you're a hyperscaler and you're making a $100 billion bet on chips, if you're wrong because you chose the wrong power supplier, you're wrong because you chose the wrong location to build in, you're wrong because you didn't select somebody who has the supply chain capability and the ability to execute, deliver power where and when it's needed, on time, on schedule, on budget, you're in trouble. I mean the opportunity cost is massive.

And so what we're now seeing too in our dialogue with hyperscalers is, hey -- and a lot of lessons learned, is, look, a real willingness to work together early on. And so we have really strong relationships across the board. It's where I'm heading right after this meeting, is out to the West Coast to spend a lot of time with one of our customers out there. And it's just never been more important. And I think that's why we were picked by the government.

I was there in the Oval Office with all 3 Cabinet secretaries yesterday: Secretary Lutnick, Secretary Wright, Secretary Burgum. And they just all have a lot of confidence in NextEra and our capability to build and to deliver.

And then I think you kind of said there that there might be more of these. Is there any sense on kind of how much more there could be of these or similar-type projects?

Yes. I don't want to put a number on it, Steve, but I think, look, we need super intelligence in this country, and power is a limiting factor. We have a supply-demand imbalance. And that's what the Trump administration is trying to address, is to make sure that we have the supply to meet the demand. And so I do think there's the potential for more opportunities here to partner together.

And our whole strategy, if you look back 18 or 24 months ago, was we knew this was where this was heading. Our bet was this was going to be a bring-your-own-generation rather than a recontracting market. Because you can't recontract low-cost generation because somebody pays for that, right? And that's the residential customers. So that we didn't think that would work long term.

And so our focus was bring your own generation, get land positions, get hubs up and running as quickly as we could, in the right locations where we think hyperscalers will want to be based on the artificial intelligence tools -- super intelligence tools that we've developed across the board at NextEra, many of which you've all seen in practice during some of the investor events we've had on campus in Florida.

I guess last question on this topic is just there's a history of new presidents coming in, including the current one, and not liking the stuff that the prior President did and was involved in administration. Just how are you kind of dealing with the risk of that happening in the future? Because I assume these will still be getting built during that time.

These are going to be fast-moving projects, right, that are going to get, I think, funded rather quickly. I mean you look at already on the Japan project's at almost $3.5 billion of capital. Those are just the first 2 capital calls; it could be more as we get through the year. So the capital is already coming in at a pretty brisk pace.

We already have a 10% funding on the Korean project today that's sitting in the bank account, for $2.5 billion, for us to get going on supply chain commitments. So these are moving, and they're going to move quickly. And capital is going to be committed in a way that we get these projects up and running fast. So I'm not too concerned about that.

But [ in the potential that it will happen ], and you didn't really answer the question about what kind of protection to the contracts are there for that new administration.

Well, we're not at risk. I mean this isn't my -- at the end of the day, we're taking the capital and we're buying equipment or we're going to engage in services, we're not putting our balance sheet at risk for that. So the exposure that we're taking on is tied directly to the capital that flows into the door. And so we're never overextended or overcommitted to a supplier of equipment or to a supplier of services on the EPC side. We take no risk in this.

So basically our government and the other, yes, the other governments...

Exactly. They have the owner risk on this. But it's our job too to make sure that we advise them and that we make smart moves on how we structure these contracts. But this is what we do every day. This is nothing new for us. I mean we are very comfortable structuring milestone payments to equipment suppliers and to EPC contractors in a risk-mitigated way to where we never are out in front of our skis, so to speak.

And then -- actually I lied, one more question on this. The behind-the-meter, front-of-the-meter, I think a lot of these start behind-the-meter or -- and then move front-of-the -- and then add front-of-the-meter. Maybe you could just talk to ...

Yes. I mean I think when you look at these projects, I mean, we're very comfortable with them starting behind-the-meter. We're able to show a front-of-the-meter opportunity going forward.

But it doesn't have to be one for one either. We can rely on the way we've designed and built these projects in a way where you don't have to have perfect redundancy on load interconnects to be able to supply -- to get a load interconnect to be able to cover a 6.5 gigawatt project, you're not going to get, right? But having enough in an emergency situation with enough redundancy in the build and the structure and the engineering of the underlying project is what's critically important.

And I look for battery storage too, Steve, to play a bigger role. It's not only in terms of backup generation capability as a diesel substitute. But I would also look for the battery storage market to move, not only from a capacity opportunity, but to a voltage regulation compliance market opportunity as well. Because you've seen some impacts from voltage fluctuations, right, that have been attributed to some data centers, and battery storage can play a critical role in that. And we're very, very focused on that as a huge, huge business opportunity for us.

And then maybe just on -- when we think about these announcements, the list of things on the page there relative to the growth rate and plan that you had out there, what would you say is already kind of embedded in some way? And what would be an upside to that?

Well, if you look at our S-4, we had 1 federal hub in our S-4. We've got 3 now. I mentioned the battery storage opportunity now being 6 to 11 gigawatts. It's not even in our development expectations. So we reserve for our own build opportunity.

And what I remind the team of is every time we build a gas project across the country, that comes also with a couple of opportunities. I mean the first one is a storage opportunity, whether that's on the compliance side or that's on the backup generation side.

It also comes with the CFE element as well and combining technologies together. And that's one of the things that when I look at kind of how we're positioned today, not only across the supply chain, but strategically with the vertical integration and the participation across the value chain with the different capabilities that we have at NextEra, it positions us in a way unlike any other company to be able to combine different resources together, which is critically important. Because there isn't one conversation that we're having with a major hyperscaler at scale that is just a one size fits all, well, just build me gas. Just build me an SMR. Just build me solar and storage.

It's always a conversation about, well, what if we start out at 1 gig of compute capacity and we move to 3 or 4 or 5, what does that look like? What does that look like in terms of my storage needs? What does that look like in terms of available transmission capacity, load interconnect? All these things and tools we've designed over the last 3 to 5 years where we have a massive data and super intelligence advantage over this industry, and then the products that we're developing in partnership with Google to really go after being able to even further distance our competitive advantage by driving technology solutions.

Two other questions for me and then I'm going to open it up. The Florida, and I think you talked about getting a data center announcement there by the end of this year, how are you feeling about hitting that? And just is the election there kind of having any impact on data center demand and interest?

Yes. So the first part of that, we took our forecast up from 6 to 8 gigawatts here recently on large load opportunities. So we feel bullish about large load opportunities in Florida. We'll continue to be disciplined about that. We'll announce something by the end of the year on that front.

When I think about the election going forward, look, at the end of the day, this is good for Florida. I mean this is going to create good-paying jobs. It's going to stimulate local economies. But it's got to be done in the right way.

I mean one of the things I spend a lot of time talking to the leaders of the hyperscalers about is kind of our track record over the last 20 years developing in communities. And you have to go in, and we have a really stringent large load tariff in Florida, one of the most customer protective in the country. We make sure that residential customers don't shoulder the burden of the build that we have on serving hyperscalers. That's the first piece.

Second piece is going in and making sure the hyperscaler is going to pay their property taxes. Third is they're not going to use the water, right? They're going to use closed-loop cooling, they're going to use water from water treatment facilities.

The fourth piece is the aesthetics. How hard is it to build like a facade that makes the facility look like an office building. Like when I go to Northern Virginia, a lot of the data centers have windows around it. You wouldn't even know if it was an office building, a data center or a warehouse. You have no idea, right? But how hard is it to make an investment in aesthetics and vegetation?

And give something back to the community. What's in it for them? Get behind workforce training, job training. One of the things we're supporting with Meta with Dina Powell McCormick, I have a very good relationship with, is the American Workforce Academy, taking folks coming out of that academy and repurposing with EPC jobs and putting them into roles in energy infrastructure, which is what we're doing. We've already committed to take 1,000 workers out of the AWA program.

Giving bonuses to teachers, like Meta has done with the $50,000 bonuses to teachers in the Parish in Louisiana. I mean there are really smart things that we could do around being a responsible community citizen. Giving back to first responders. Be a good corporate citizen. Be a job creator in those communities. Give back to workforce development.

There's a right way to do it and there's a wrong way to do it. And we're doing it -- we're trying to do it the right way, and we're trying to partner with people that are doing it the right way.

Last for me and I'll open up, Dominion deal, we haven't talked about that. I don't know if that was because something has changed or just you're trying to remind people that you got a lot of growth on your own. But just how are you feeling about Dominion deal in terms of getting it done and then, and then opportunity once you do?

We're feeling really good about it. First of all, one of the things that we've really tried to do is listen, right, and take feedback. And so we've had hundreds of stakeholder meetings in Virginia. And we wanted to make sure that we were putting our best foot forward and that we were really listening to the community on what was important.

And what's been really clear are 3 things that have come out of that. One is jobs; two is affordability; and three is clean energy. And not necessarily in that order.

But on the affordability side, we were able to work with the data center community. Amazon actually filed right before we filed our additional commitments on the Friday before, that they were willing to give up their credits, right? And they were getting most of the large load credits in Virginia, and reallocate those over to residential. And then we topped that off with another $85 million commitment. But that took residential credits from 2 years to 4 years there.

We put $100 million behind the low-income bill assistance program that they have in Virginia, which gets paid out through 2038. We put $100 million behind workforce development. We put -- committed to 1,000 jobs, 600 coming from NextEra, which is doubling the size anyways, and then 400 new jobs coming from suppliers.

Build in a new office tower to be able to house those folks in Richmond, which Richmond has been -- was hit hard by the banking community having moved to Charlotte. And it's now a chance, by creating an ecosystem around Virginia, for -- Virginia already leads in tech, they lead in defense. When you put these 2 companies together, you have the global leader in power and it's a chance to have a co-headquarters of the global leader in power. And so suppliers want to be there. By creating a workforce development and a supplier support program, here we're committing to spend $1 billion a year in Virginia for suppliers doing business in Virginia, this creates an ecosystem for natural growth around the state.

And so I feel like we've really put our best foot forward, and that's why I answered the question the way I did. In South Carolina, we're committing to make investments in generation and transmission, just like in Virginia. Generation and transmission. It's important for Virginia to become more energy independent, less reliant on expensive imports from PJM. And we think we can get that done. They have 20 gigawatts of storage that has to be built under statutory mandate by 2044. Well, who better to do that than the world's leader in batteries?

A lot of the 600 jobs that we will be bringing to Virginia around renewables, around battery storage, battery storage excellence center, SMRs, AI, cybersecurity, we think it's a really good fit. If the focus is on jobs, affordability and clean energy, I can't think of a better match for Virginia than NextEra combining with Dominion.

All right. Let me open it up to the audience. Jeff?

[indiscernible] provisions for that in the contract? And are there any penalties if you guys don't...

Yes. I mean without getting into too many of the details because it is sensitive in terms of what we can talk about, what we can't talk about, the way it's set up is that just like any energy infrastructure projects, right, there are certain milestone payments that you have to make along the way, right? You've got to reserve turbine slots. You've got to make milestone payments to your EPC contractor, you get the labor commitment upfront to build. And those payments have to be made over time.

This is being structured through a special purpose vehicle, private. It's outside the government infrastructure with funding commitments coming from the Japanese government, the Korean government, who have said, look, instead of facing tariffs with the U.S. government, they now have a chance to earn a return on investments here in the United States. And so the way the milestone payments are structured is such that we accommodate that build going forward.

But from our standpoint, we're not the owner of the facility. And so the way we will structure these milestone payments, they're due on certain dates to maintain schedule. This government is -- this administration is very, very focused on making sure that these projects get up and running as soon as possible because we're desperately short energy generation in this country to accommodate data center supply.

Other questions?

John, can you speak a bit to the interest rate, the macro outlook, the interest rate environment? You guys have done a fair bit of interest rate hedging, which has been advantageous. But also your read on how that plays out and what might that do to the hyperscaler CapEx and financing [ views of it ]? And you're working with a lot of them, so it'd be great to...

Yes. I mean I think, first of all, if you think about the macro overlay with our company, and I'll start with the gas build, right? Since we're not committing capital, we're not exposed to rates, right, on the gas build. So that's simple, right?

When I move over to the renewable side and storage, you all know we match-fund, and so we have $46 billion of hedges in place. Our interest rate sensitivity in today's interest rate environment is $0.01 to $0.03 in '28, because we have hedges in place, right? And as we move forward on future origination, the cost advantage that we're seeing on the solar and storage side will be able to absorb those higher costs of capital. So I don't see any downturn in the demand for the renewable or the storage opportunities that we have going forward.

And don't forget on the equipment side, we bought our equipment out through 2030. We're already physically and financially hedged. We have our equipment. But signed up and contracted through 2030. We don't just sit here and wait for things to happen to us. We plan ahead. We constantly plan ahead. We think strategically about the supply chain and how we risk-mitigate our business so we don't wear window risk, right? And we lock things in a match fund when we sign contracts. And so that's the first piece.

On the hyperscaler side, when you think about the super intelligence effort across the country and how critically important it is for not only global economic superiority in progress, but also some of the military and defense setbacks we could experience by not investing in it, they're substantial. These models are moving quickly. There's been a lot of discussion with the federal government and how to manage those things.

But I just don't see that demand slowing down anytime soon. The opportunity cost of not investing is so substantial. We cannot afford for other countries to get ahead of us. And so I just don't see much of a slowdown at all in that area.

I think we're pretty -- yes.

You mentioned you just met with some Cabinet members yesterday. What, if any, changes in discussions that you have as to why there haven't been any nuclear facilities announced yet, what might be challenges in announcing those?

Yes. I think the federal government is really getting behind nuclear. So like part of the announcement yesterday -- Westinghouse was there. I mean it's 3 projects, right? It was the Alaska Pipeline. It was a Westinghouse investment in 8 nuclear units. And then it was our 6.5-gigawatt award on Project Star. So the government is really getting behind nuclear. It's a big part of it and a big part of that push. Secretary Wright, I think, has really tried to get behind that, together with Secretary Lutnick.

And I think now with the funding that's in place, your question really is, well, when will we see folks start to sign up? And I think it's going to be important that the [ 5-wallet piece ] lines up, right, which is, number one -- I view all this as forming a risk tower, if you think about insurance, right? Where is the primary layer, the secondary? Who takes the last-dollar risk?

I guess, just on announcing specifically of yourself or other utilities on this group [indiscernible]?

Yes. I mean, sure, they are out there having conversations, undoubtedly, with the industry. I mean I think I'll speak from a NextEra standpoint. The way we look at nuclear has not changed. I mean we spend a lot of time focusing on small modular reactors for example.

But the cost sharing has to be right. I mean we are not going to take last-dollar risk for our shareholder. We put a little bit of risk maybe fees or other things that are capped at risk. Sure. But there's a lot of other folks involved in the value chain. You have the EPC -- the OEM. You have the EPC contractor. You have the developer. You have the federal government. And so the package would have to come together in a way where it was appropriately risk-mitigated. We just can't take on untold risk for our shareholder, which I would never be willing to do, and -- or for our customers.

I think we got to leave it there. John, thank you. Great to see you.

Yes. Thank you.

Good day, and welcome to the NextEra Energy, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Michael Dowling, Director of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining our second quarter 2026 financial results conference call for NextEra Energy. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunne, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Vice Chairman of NextEra Energy; Scott Bores, President and Chief Executive Officer of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy.

John will start with opening remarks, and then Mike will provide an overview of our results. Our executive team will then be available to answer your questions.

We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.nexteraenergy.com. We do not undertake any duty to update any forward-looking statements.

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure.

With that, I will turn the call over to John.

Thanks, Michael, and good morning, everyone. NextEra Energy delivered a strong second quarter with adjusted earnings per share of $1.15, reflecting continued operational and financial execution across both FPL and Energy Resources. Through the first 6 months of the year, our adjusted earnings per share increased 9.8% year-over-year. NextEra Energy continues to be well positioned to deliver on its growth opportunities in its regulated and long-term contracted businesses in 2026 and beyond.

Power demand continues to accelerate. NextEra Energy is uniquely positioned to meet the power demand needs of our customers because we have the scale, financial strength, supply chain, development expertise and technology to build all forms of energy. Customers can't afford to wait for an energy partner to secure equipment, land or financing. And states shouldn't have to choose between economic growth and affordable electric bills.

Today, energy partners must deliver both. This is exactly what FPL and Energy Resources consistently do as we execute against our 12 ways to grow. Our deeply experienced teams are focused on serving our customers and delivering them the solutions they need when and where they need it.

We believe FPL continues to be one of the best examples of how to serve rapid growth while keeping customer bills low and reliability high. The state remains one of the fastest growing in the nation supported by a large and increasingly diverse economy, continued net in migration, job creation and business investment. In fact, Florida's $1.8 trillion annual economy is now the 14th largest in the world, recently surpassing Australia and Mexico.

That growth translates directly into electricity demand across our service area, including the Space Coast, and FPL is uniquely positioned to meet it. FPL added more than 90,000 customers in the second quarter compared to the prior year comparable quarter. What differentiates FPL is that we don't choose between affordability, reliability and serving growth. We consistently deliver all 3 at the same time.

Today, FPL's typical residential bill remains approximately 30% below the national average and is only projected to increase 2% annually on average through the end of the decade. We drive consistently low bills through exceptional operational efficiency. FPL's nonfuel O&M is more than 70% better than the industry average on a $1 per megawatt hour basis.

Customers also continue to benefit from top decile reliability. That's more than 60% better than the national average. This performance is the direct result of a proven long-term strategy centered on sustained, disciplined capital investment; scale; a strong balance sheet and credit rating; a highly efficient operating model; and a diverse generation fleet. In fact, during the quarter, FPL placed into service 4 new cost-effective solar sites to support Florida's growth. And we remain on track to meet our full year expectations to install approximately 900 megawatts of solar and over 1.4 gigawatts of battery storage. It's why FPL continues to own and operate more solar and storage than any utility in America.

Importantly, FPL is positioned to develop new cost-effective solar and storage for the benefit of its customers because approximately 90% of our generation mix is anchored in baseload gas-fired and nuclear generation, the result of sustained investments over the last 25 years to modernize our power plant fleet while meeting power demand from significant population growth.

We continue to see very strong interest from hyperscalers and other large load customers that value speed to market, reliability and competitive power pricing. That is why in May, we updated our expectations from 6 gigawatts to 8 gigawatts of large load by 2032. As part of FPL's new 4-year rate agreement, we designed our large load tariff to protect our existing customers. We believe our large load tariff is industry-leading. In fact, in May, Florida's governor signed a bill that codified many aspects of FPL's large load tariff into law. And yesterday, along with Dominion Energy and certain other utilities, we announced our support for the White House's Ratepayer Protection Pledge, which reinforces this principle of large load customers paying their fair share.

Importantly, it's aligned with how we already approach our infrastructure projects to serve large load customers. We have roughly 21 gigawatts of large load interest at FPL. Of that, we are in advanced discussions on 12 gigawatts, a portion of which we believe we could begin serving as soon as 2028.

FPL is advancing negotiations with large load customers and continues to expect to announce at least one large load transaction under FPL's tariff by the end of the year. Initially, we expect every gigawatt of large load under FPL's approved tariff to be equivalent to roughly $2 billion of CapEx and to earn the same return on equity as other FPL investments.

Bottom line, we believe FPL's opportunity set has never been clearer, a rapidly growing service area, a disciplined and constructive regulatory framework, scale complemented by a best-in-class operating model and a long runway of investment opportunities, all while continuing to do what matters most, which is delivering reliable, affordable electricity for our customers every single day.

Turning to NextEra Energy Transmission. During the quarter, it energized a new transmission line in New Mexico to strengthen the grid in a growing part of the state, demonstrating why it is one of America's leading independent electric transmission companies. The team delivered the 137-mile, 345 kV line ahead of schedule and on budget. This project is projected to reduce typical residential electric bills in 2031 by approximately $13 per month based on an independent study performed by the Southwest Power Pool, providing a clear and tangible example of how smart transmission investments can directly improve affordability for customers.

The project took just 31 months from being awarded to being placed in service, one of the fastest transmission development and construction projects anywhere in the industry. This reinforces what we believe is a core differentiator for Energy Resources, our ability to consistently execute and bring critical infrastructure online at a time when speed matters most for customers.

NextEra Energy Transmission also continues to win new competitive transmission projects across the United States. During the quarter, MISO selected NextEra Energy Transmission as part of a consortium to develop 2 large-scale 765 kV transmission projects in Illinois. NextEra Energy Transmission would have 43% ownership of the approximately $1.6 billion project, which aims to serve as a backbone system to deliver reliable, cost-competitive energy across the Midwest.

As I've said many times, power generation alone can't and won't meet this unique moment. This country also needs a new transmission infrastructure to reliably deliver electricity to our communities. It's why NextEra Energy Transmission is focused on delivering the solutions for customers.

Including both transmission and generation, Energy Resources has one of the strongest and differentiated energy infrastructure platforms in the country. At a time when customers need tailored solutions, more capacity and speed to market, Energy Resources is uniquely positioned to deliver. For the quarter, Energy Resources added 3.6 gigawatts of renewables and storage projects to its backlog, its second largest quarter of additions coming on the heels of last quarter's record 4 gigawatts.

Battery storage represented 2 gigawatts of additions this quarter. Battery storage remains an important growth driver, and we believe we are exceptionally well positioned to deliver this capacity solution for customers. That's because we have several ways to develop storage. We can build it as a stand-alone project. We can co-locate storage across our existing renewable sites. We can develop batteries as grid solutions, and we can expand 4-hour batteries to 8 hours at our existing storage sites.

Put simply, the opportunity set for battery storage is significant. And because of the size and diversity of our asset portfolio, co-located storage is a meaningful differentiator for us. Our stand-alone and co-located battery storage pipeline sits at over 110 gigawatts without including our expansion opportunities. More broadly, our backlog provides meaningful visibility into future growth and underscores the value of our long-term contracted business.

We also continue to execute on recontracting projects within our operating portfolio that are coming off contract. Since the last earnings call, we recontracted over 500 megawatts of existing projects. This brings our year-to-date recontracting total to over 1,100 megawatts of renewables. This quarter's recontractings have been priced on average at a premium of roughly $20 per megawatt hour above recent realized pricing for these projects. And we have also looked -- we have also locked in contracts for approximately 15 years on average, reflecting the strong electricity demand environment we're seeing today.

As a reminder, Energy Resources has up to 6 gigawatts of renewables and 1.5 gigawatts of nuclear recontracting opportunities through 2032.

Another major area of opportunity is large load demand and our data center hub strategy. Hyperscalers and other large load customers are increasingly focused on speed, certainty and scalability, and that plays directly to our strengths. We believe Energy Resources is one of the few companies in the country that can support these customers with a full suite of solutions from renewables and battery storage in the near term to gas-fired generation and potentially nuclear over time. In fact, we now have 30 potential hubs we are discussing with the market, and we continue to expect that number to rise to 40 by year-end.

We also have 4 origination channels feeding into our base case goal of securing 15 gigawatts of new generation to serve large load by 2035. These 4 origination channels won't just help us achieve our base case of 15 gigawatts, they can also help us achieve our upside case of 30 gigawatts or more by 2035. Our channels include working directly with hyperscalers, with investor-owned utilities, with cooperative and municipal utilities and with federal partners.

Importantly, we continue to position Energy Resources to where the market is moving. Our bring-your-own generation approach with hyperscalers resonates because it provides a way to meet incremental demand either in front of the meter or behind the meter, while helping protect affordability for existing retail customers. We believe FERC's Section 206 show cause orders that were announced in June will create yet another market shift and generate strong demand for the ability to match load with generation. We spent the last 18 months preparing and positioning our business to deliver that solution for customers.

The recommissioning of our Duane Arnold nuclear plant is a perfect example of matching electric load with power generation. We remain on track to bring the plant back online no later than Q1 2029. Since our last call, the Iowa Utilities Commission approved a generating certificate for the plant, and we also successfully closed on the acquisition of the final 30% minority interest in the plant held by our 2 cooperative partners, making us the sole owner.

We continue to advance development of up to 9.5 gigawatts of gas-fired generation projects in Texas and Pennsylvania. In March, the President approved the projects which are drawn from our existing inventory of data center hubs. While not yet complete, we continue to progress discussions on definitive agreements with the U.S. and Japanese governments.

We also continue to evaluate advanced nuclear, closely evaluating the capabilities of various SMR OEMs. We have 6 gigawatts of SMR co-location opportunities at our nuclear sites, and we are working to develop new greenfield sites. Of course, any new nuclear build would have to include the right commercial terms and conditions with appropriate risk-sharing mechanisms that limit our ultimate exposure.

In short, we're off to a strong first half of the year, and I'm as confident and as excited as ever about our prospects to deliver on our 12 ways to grow in the second half of 2026 and beyond.

At the same time, we continue to advance our combination with Dominion Energy. On July 15, we filed for merger approval with the Virginia State Corporation Commission, North Carolina Utilities Commission and the Public Service Commission of South Carolina. The Virginia filing initiated the state's statutory 6-month review process. The company has also filed for merger approval with the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. And we filed the S-4 with the Securities and Exchange Commission on July 9, which became effective yesterday. We expect to distribute proxy materials to shareholders in the near future and expect Dominion to do the same and are anticipating both shareholder meetings to be held in early September.

We believe our proposed combination is a natural extension of our capabilities and experience. We're putting a larger NextEra Energy platform behind Dominion Energy at the exact time when scale matters more than ever to face a set of challenges unlike anything the utility industry has seen in decades. As I've said before, this is a merger of addition, not subtraction. The rare example of when 1 plus 1 equals 3.

Simply put, combining NextEra Energy and Dominion Energy would drive affordability, create local jobs and deliver all forms of energy infrastructure, including battery storage by leveraging the strengths of 2 industry leaders and sharing best practices in grid modernization, storm restoration, customer service, workforce tools, data analytics, artificial intelligence and process improvement, just to name a few.

Let's start with affordability. As we said in May, in the near term, we are offering $2.25 billion in shareholder-funded bill credits to Dominion Energy's customers in Virginia, North Carolina and South Carolina. This is a meaningful, concrete and substantial benefit, but the combination also adds capabilities that will benefit customers long after we've delivered these initial bill credits.

The increased scale and enhanced operating platform of the 2 companies will help maintain affordability at a time when power demand requires more investment in generation and transmission. Buying, building, financing and operating energy infrastructure more efficiently benefits customers over time. It's exactly what we've done at FPL, which is why our typical customer bill today is 20% lower than it was 20 years ago in real dollars.

The proposed combination would also serve as an economic catalyst. We expect to more than double the size of our combined company by 2032, which would mean good jobs for many years to come for our talented teams across the 4 states we would serve and across America where we operate. As with NextEra Energy, Dominion Energy's employees are one of the company's greatest strengths with an unmatched understanding of the customers and communities they serve.

In addition, the fabric of a well-run utility is a company that's strongly embedded in the community it serves. That's exactly why the combined company will maintain dual headquarters in Richmond, Virginia, and Juno Beach, Florida, along with an operational headquarters in Cayce, South Carolina. We also have a retention commitment for Dominion Energy employees, but that just scratches the surface.

Remember, building new energy infrastructure creates new jobs. And building that new infrastructure while maintaining affordable and reliable power attracts new residents and businesses, which then requires new infrastructure. The cycle then repeats. Meeting this moment requires all forms of energy infrastructure. That's exactly what this combination would deliver.

As I mentioned earlier, we are not dependent on a single piece of technology. NextEra Energy is the world leader in renewables and storage. We're also a leader in gas-fired and nuclear generation, and we're a leader in transmission. And we build and operate energy infrastructure better than anyone in our industry. We'd be taking these capabilities and pairing them up with Dominion Energy's local operations, leadership, expertise, community presence and history of outstanding service, better positioning the company over the long term.

To be clear, this isn't about changing what's worked for Dominion Energy. Rather, this combination is about Dominion Energy adding the undeniable benefits of being part of a larger combined company with deep skill sets and experience across the energy value chain, providing access to scale and an industry-leading platform and balance sheet. Scale matters because it creates efficiencies that compound over time into lower cost, better experience and stronger outcomes for customers, which has never been more important given the challenges being faced today.

As we discussed in May, the combined company is expected to support approximately 11% annual growth in regulatory capital employed through 2032 and 9% plus adjusted EPS growth through 2032 with a 9% plus target through 2035, all off a 2025 base. Just as importantly, the opportunity set becomes broader and more diversified. We expect the combination will close in the second half of 2027.

With that, I'll turn the call over to Mike.

Thanks, John. Let's begin with FPL's detailed results. For the second quarter of 2026, FPL's earnings per share increased $0.05 year-over-year. Regulatory capital employed growth of approximately 9.3% was a significant driver of FPL's earnings per share growth versus the prior year comparable quarter. FPL's capital expenditures were approximately $2.8 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion.

For the 12 months ending June 2026, FPL's reported return on equity for regulatory purposes will be approximately 11.7%. During the second quarter, we reversed approximately $110 million of the rate stabilization mechanism, leaving FPL with an after-tax balance of approximately $1.3 billion.

Key indicators show that economies -- Florida's economy remains healthy. Florida continues to be one of the fastest-growing states in the nation and is currently ranked #1 in GDP growth and #1 in net migration by U.S. News. And as John mentioned, FPL had a strong quarter of customer growth with the average number of customers increasing by over 90,000 from the comparable prior year period.

FPL's second quarter retail sales increased by approximately 0.4% year-over-year. After taking weather into account, second quarter retail sales increased by roughly 0.6% on a weather-normalized basis from the comparable prior year period, driven primarily by continued favorable underlying population growth.

Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 18% year-over-year. Contributions from new investments increased $0.09 per share year-over-year, primarily reflecting continued growth in our power generation portfolio. On a net basis, the remaining drivers for Energy Resources were roughly flat as various onetime items and timing impacts offset each other.

We remain well positioned to navigate the current interest rate environment through our over $46 billion interest rate hedging program. We have also planned for potential trade impacts and positioned ourselves to deliver and execute for our customers. That's why we've proactively secured supply to support both FPL and Energy Resources development plans, including the development of our national data center hub footprint.

For solar, we've secured panels through 2029. We're also well protected for battery storage with competitively priced domestic supply also secured through 2029. We have sufficient wind sites with expected federal permits to meet development expectations through 2029. And we have sufficient transformer capacity to support our build forecast through the end of the decade.

Energy Resources had a strong quarter of new renewables and storage origination with 3.6 gigawatts added to the backlog. With these additions, our backlog now totals approximately 35.1 gigawatts after taking into account 1.1 gigawatts of new projects placed into service since our last earnings call. This highlights the continued strong demand for renewables and storage. Energy Resources 2026 to 2029 backlog represents approximately 2/3 of its development expectations midpoint through 2029. Overall, we are well positioned with approximately 2 years to add 18.6 gigawatts to our backlog to be at the midpoint of those expectations.

Turning now to our second quarter 2026 consolidated results. Adjusted earnings from Corporate and Other decreased by $0.04 per share year-over-year. Our 2026 adjusted earnings per share expectations range of $3.92 to $4.02 remains unchanged, and we are targeting the high end of that range. We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and are targeting the same from 2032 through 2035, all off the 2025 base of $3.71 of adjusted earnings per share.

From 2025 to 2032, we expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range. And we also continue to expect to grow our dividends per share roughly 10% per year through 2026 off a 2024 base and 6% per year from year-end 2026 through 2028. As always, our expectations assume our caveats.

That concludes our prepared remarks. And with that, we will open the line for questions.

[Operator Instructions] The first question today comes from Steve Fleishman with Wolfe Research.

Thanks for the updates today. So just, I guess, two questions. First, on the S-4 filing. Obviously, as always, they have in there some -- an internal forecast for the company. And based on share count they use, it looked like it might imply earnings growth for the stand-alone company, 9% or better. And then the NEER EBITDA, it looks like it might be even like $5 billion higher 2032 than the Analyst Day number. So maybe you could just give us some color on are you just conservative with your guidance? Is there certain things assumed in there that were different than assumed in the guidance? Just how should we think about that forecast in the S-4?

Thanks, Steve. Mike Dunne here. Let me address those. So as we look, you obviously know that we are continuously revising our forecast internally. And that's one of the things that we do well in providing new forecast 8 to 10x per year. When you look at our S-4, key pieces that you will see, one is that our adjusted EBITDA at Energy Resources is roughly $4 billion higher in 2032 than we had in our December investor conference. The key driver of that $4 billion increase is the performance that we are seeing in our originations on the renewables and storage side is better than what we had anticipated and what we had forecasted in December. Our overall expectations in terms of development is the same development expectations. We have not made material changes to our forecast.

One thing you will see is that, as we've talked, FPL has increased its large load expectations from 6 gigawatts to 8 gigawatts. So the key driver of the increased performance is really the returns and earnings profile that we are seeing in our renewables and storage development and our originations as we move forward.

And I think, as you mentioned, Steve, people can do the math in terms of what that forecast looks like. We're obviously not changing our current development -- our current earnings expectations. They remain at 8% plus through 2032 with a target of 8% plus through 2035. But we also stand by the projections that those are our best forecast of what this business can achieve at the current time.

Okay. That was very clear and helpful. The other question is just on the federal hub projects. John, I think you said in the last call, 2 to 3 months, hopefully, have them done and that's kind of now. So maybe you could just talk to what's caused any delay? Is it just more logistical timing things? Or is there some issues in terms of just actually getting them to the goal line?

Yes. Thanks for the question, Steve. Let me just talk -- start by talking about the federal hub program -- well, just the hub program in general. And then I'm going to -- I'll turn to the federal hub. First of all, we feel really, really good about where we are on our hub strategy in addition to the execution we've seen on the renewable origination side. I would characterize it as we feel like we're ahead of schedule. And when I look at the second half of the year and beyond, shaping up very well. You can't -- so we're making a lot of progress. You can't always time these things around these calls, but I think the takeaway for investors should be ahead of schedule.

Let me turn quickly to your question at hand, which is talking about the 9.5 gigawatts we're working with the United States government and the Japanese government on -- that continues to progress. As I said in our prepared remarks, continuing to make progress. And it's just when you bring 2 large nation states together, things don't always go according to schedule in terms of getting things done as fast as you might want. But I wouldn't read too much into that.

When I look at our overall origination program, Mike hit on this, but you look at where we are, some of this is reflected in the S-4, just continuing to make a lot of progress there. So if you take kind of our 4-year program and you look through '29 on the renewables and storage side, we're ahead of schedule. You basically have to do 9 gigawatts a year over the next 2 years, hit the midpoint of our expectations over that 4-year period through 2029. We're taking our federal hubs up from 30 to 40, which is going to give us even more opportunities in the market. And I think a lot of those hubs are located in the right areas because we have terrific data sets and technology and a lot of lessons learned on where hyperscalers want to be.

So the bottom line is things are continuing to track well and feel good about where we are, and also at FPL. That's why we took our forecast up from 6 to 8 gigawatts, continue to see a lot of interest in Florida and feel good about our ability to announce a large load transaction there by the end of the year, which is the expectation we continue to express to investors.

The next question comes from Julien Dumoulin-Smith with Jefferies.

Nicely done. Maybe to pick up where Steve left off really. Why don't we pick up -- the 6 to 8, can you talk a little bit about what you're seeing on the ground in terms of Florida and the additional data center development? I mean this has really been a nice blossoming here. Can you speak to what you're seeing on the ground? And also just a nuance in what you responded to a second ago, would you expect to announce these on the quarterly calls? Or just given the material nature, would this be sort of necessitate some sort of 8-K intra-quarter?

Yes. So let me just start with the first one. I'll turn it over to Scott here in a minute. But I think a lot of what we're seeing in Florida, Julien, is just a testament to a lot of what I spent my time talking about in the prepared remarks. We've just done a really solid job in execution across Florida. I think that's recognized across the hyperscale space. I think the fact that we can build at a low cost is appealing to folks.

And when you think about where the market is heading and what's happened over the last couple of years, a lot of low-hanging fruit from utilities that might have been in an excess generation position. That surplus generation has been sold off, right? And now if you look at FERC show cause order matching load with gen and making sure large load pays their own way, I mean, it's really going to, I think, shift the scales to creating a level playing field where people are going to have to compete on cost. And I think that makes Florida very compelling because of the execution track record that we have been able to demonstrate at FPL over a number of years.

But with that, Scott, I'll turn it over to you to add any additional points you want to make.

Yes. Thanks, John. I think the only other point I would add to this, Julien, is number one, having that legislation come in place in May allows for a lot of certainty for these customers that are going to make multibillion-dollar investments in the state of Florida. So I think that gives us a good foundation to build upon.

I think the other thing that's important is what John mentioned in his prepared remarks, having 90% of our fleet in baseload gas generation and nuclear really allows us to quickly and easily integrate additional generation to provide the speed to market that all these customers are looking at. And so we feel really good about the 12 gigawatts that we have in advanced discussions. And as John said, we feel really confident about making a large load announcement before the end of the year.

Got it. Even into...

Yes. Last thing I'd just note there is when things are important to our business, we're going to tell the market. So we won't wait until the quarter just to have a story for a quarterly call.

Excellent. I know people love to debate that. And then just if you can elaborate briefly here, how do you think about potentially looking at the strategic nature of your business and expanding your footprint? I know you guys have looked at, for instance, linear infrastructure at times. Just obviously, Dominion now pending here, but how do you think about leaning further into this data center opportunity and sort of the adjacencies that you guys have been dabbling with, shall we say, prior to this latest deal?

Yes. Great question, Julien. When I think strategically about the business, we have put a big priority on vertical integration. And if I think you look at the vertical integration that we have at NextEra across the board, which really translates into our operating platform, we have all the pieces. And so when you're not only trying to solve just, what I'll call, more rudimentary or customary energy solutions for customers, we certainly have the capability to do that. But when you start to think about large load and all the capabilities that have to come together, not only renewable expertise, storage, gas-fired generation, potentially nuclear under the right structure, the ability to bring transmission, the ability to build gas pipelines and laterals, the ability to have a retail energy business to help with the large load queue process, the ability to manage molecules and power flows across the country. The Symmetry acquisition is a good example of improving vertical integration being the third largest gas marketer now in the country.

We have a very good understanding of where those gas flows occur and how they translate into valuable solutions for customers. We have similar expertise on the power marketing side as well. And there's really -- when I look across the board and you think about that vertical integration skill set and then you couple that with who is really out there building, there really aren't that many folks out there building, right, new generation solutions because it takes experience and it takes the ability to have all those vertically integrated skill sets come together. And that is what puts us in a unique position.

And that goes back to my answer to Steve, which is I feel like we're ahead of schedule. And a lot of the opportunities that we've put forward and a lot of the work we've done over the 18 months as we anticipated the shift to BYG being the right answer rather than recontracting existing assets, I think we have a definite first-mover advantage and very excited about the market potential that we see across the board. Obviously, all of those vertically integrated skill sets will, I think, help in the Dominion merger immensely, right? Because we have those vertically integrated skill sets, and we have them at scale.

And it really translates in the ability to deliver on affordability, to create jobs, to create economic development in those states and to be able to deliver the right growth solutions that are right for each of those jurisdictions and do it in a way that results in good outcomes for customers. But it's complicated, too. When you think about everything that's going on with PJM and the FERC show cause order, it requires, I think, an energy thought leader that has experience across the United States. And we've seen what every ISO does. We've had 20 years of experience working across this country. And I think we'll also be a valuable thought leader being able to bring constructive ideas forward in a very economic and affordable way that will translate into affordable solution for customers over time and reliable solutions for customers over time.

The next question comes from Nick Campanella with Barclays.

Thanks for all the details. I just wanted to maybe ask first on -- you brought up renewables recontracting average premium of $20 to realized pricing with a 15-year term. And I know you have more on the contracting side to go. So I guess just in the context of the 8% plus and the stand-alone plan that you recently updated, is that included and trending better to plan? And I guess, could you maybe -- if the performance in origination is trending better on the storage and renewables side, maybe an update on where you're seeing returns?

Yes. I'll go ahead and start and then turn things over to Brian. So first of all, when you think about renewables and contracting, we've always said that there's immense option value that translates in the terminal value on all the investments that we make. And so when you look at the investment footprint we have across the board on renewables, it translates into a couple -- 2 or 3 different opportunities. One is recontracting. And obviously, we benefit from the fact that we have substantial energy demand that's trying to be met by generation solutions, but supply is not matching demand today, which is resulting in higher pricing across the board, and that's creating significant opportunities that is really improving the terminal value of our entire portfolio.

Then you think about the option value embedded in everything that we've been -- built. And yes, I talked a lot about storage as being a co-location opportunity around our solar and wind portfolio. But basically, every asset that we build comes with an immense storage opportunity. And think about -- one of the things I don't think we probably spent enough time talking about is the hubs as well on that option value creation opportunity because when you think about building a hub that's rooted in gas-fired generation, for example, to meet NERC requirements, it's going to have to also come with a behind-the-meter reliability solution around storage.

And there'll be significant -- every hub we build is a massive enabler for battery storage, which we don't really spend enough time talking about. And then when you think about bringing these hubs together and you think about speed to power and you think about long-term solutions as you ramp with your hyperscale customer as they grow into their compute capacity at a site, that speed to power solution, many times we're finding is starting with a renewable solution because we can get that on the market in 12 to 18 months quickly, then we're moving to gas, then we're moving to more battery storage to provide that redundancy behind the meter. So there's just an immense option value in what we've built.

On the return side, continuing to see returns trend up across the board. And I think as you -- we move forward with these scale solutions around hubs, those command because of the ability to provide a comprehensive solution across generation types and to bring other benefits to bear through our vertical integration strategy and our operating platform, there's a premium to be paid because it's a unique skill set that nobody has, and the market is willing to pay you for that. So that's kind of how I look at it, Nick.

Brian, I don't know if you have anything you want to add to that.

No, I think it's -- the experience we're seeing in the market is that projects are getting bigger, they're getting more complex and they require, as you said earlier, builders. And so what we're seeing is obviously a need for power, a need for skill set. And I think that's being reflected in the returns that we're seeing in our projects.

And Nick, just to bring this back to the financial questions that you asked, these recontractings and these increased returns that we are seeing are all reflected in the numbers as we discussed in the S-4.

Really appreciate it. And then maybe just moving to the transaction with Dominion. You announced it in May. You've had a lot of time to interact with state-level leadership and stakeholders. Just anything you can share from your conversations and reactions from local constituents? And as you've made these filings, given the complexity, is there anywhere that you're skewing within the 12 to 18 months to get this deal closed?

Yes. I would characterize the decisions -- or the conversations as going well. And our whole philosophy and approach is much like the approach we've taken at Florida Power & Light and the track record that we have in Florida Power & Light. And it's a customer-first approach. And what we've been able to explain local leadership is when we look at this opportunity, we really look at an opportunity to help the customer and help the customer at a time when there is accelerating power demand.

And the ability to meet the growth to provide the generation solutions at scale at a lower cost is extremely important to be able to drive affordability over time. And then the ability to bring a suite of generation solutions to really help drive reliability, I think, is extremely attractive. Our track record on customer service as well. But when you really look at being able to demonstrate the most tangible example we can bring forward for state leadership is, again, Florida Power & Light. When you have a bill that's more than 30% lower than the national average, 20% lower than it was in 2006 and in real dollars, O&M on $1 per megawatt hour basis, that's 70% better than the industry average, top decile reliability that's 60% better than the industry average, so on and so forth.

Storm response in 3 states where storm response is very important, our track record there, very compelling, right? And the ability to do what these 3 states are facing because we've done it for 20 years in Florida. We faced significant growth in Florida for 20 straight years and have been able to do it by investing in new generation while keeping bills affordable. That track record speaks volumes for what the potential could be here. And then being able to do that in a way that preserves what those states are accustomed to seeing, which is that local feel, all that experience that Dominion brings at the local level, being able to interact with the same folks that are wearing the same shirts, the same name on the bucket trucks.

The interaction at the local level is not going to change. We're going to leverage what Dominion does best locally and its strong track record of operations, the cross learnings that we'll be able to have, but be able to support that local leadership with the scale and the operating platform that comes with the NextEra business, which just translates into affordability for customers across the board. So that message, I think, has been very well received.

And I look at it even broader than that, which is the ability to create jobs by a company that's doubling its generation fleet by 2032, which is our expectation. And then the economic development partnership that comes for all 3 states. When you think about a company that's #1 in gas, the combined company, the #2 in nuclear, world's leader in renewables, world's leader in battery storage, a leader in transmission. We have the ability to bring economic growth to those states through OEMs, through EPC contractors and whatnot that have to be there to serve our needs. And also, given the scale and the buying power that we have, are going to be encouraged to help support economic development in the states where we're located.

So I think when you put that whole package together, so far, it's been well received. But look, ultimately, it'd be up to the states to decide. But so far, the conversations at the local level have gone well.

In terms of your question on timing. Look, we still are looking at, I think, the second half of 2027, but we would obviously look for opportunities to move that up wherever we can.

The next question comes from Jeremy Tonet with JPMorgan.

Just wanted to shift gears a little bit, if I could, towards nuclear. And just wondering, there's a lot of talk out there, but want to see your updated thoughts on, I guess, what the possible time line could be for this coming to fruition in your view?

Well, when I think about nuclear, Jeremy, first of all, we are doing a lot on the nuclear front. Not only recommissioning Duane, which is going very well, very happy with the execution that I've seen out of the team there, which I think benefits a lot from many of the things we spent time talking about on this call. But the focus also that we've had on SMRs and all the work we've done around the OEMs, the commercial, the technical viability assessment that we've had there, encouraging.

But I think, again, I'll come back to -- anything we do on the nuclear side has to be done under the right commercial structure. And so it's finding a way how do we advance from first of a kind to nth of a kind in a way where we're not taking on customer overrun risk, right, which we would not do, but there are a lot of, I'll call them, the 4 or 5 wallets that come to the table. It's not only us as a developer. We would put a little bit of capital at risk, but have to be sensible. It have to be capped.

You have the hyperscaler or the customer, whoever that might be. You have the U.S. government. You have the OEM. You have potentially an EPC contractor that's working as part of that. So I do remain encouraged that we'll be able to figure out a financial structure, build what I call an insurance tower that equitably allocates risk to the right places. So again, the end result is we're not taking cost overrun risk, and we're doing this in a measured way that makes sense for all of our stakeholders, including our shareholders.

Got it. That's helpful. And then I just wanted to shift back towards natural gas pipelines, if we could. We haven't really seen meaningful new greenfield development since Mountain Valley, your JV, completed a few years back, and there seems to be a lot of need for moving molecules across the country. It seems like the regulatory backdrop is more favorable than it has been in the past, and there's a lot of need for new logistics solutions. How do you see this moving forward at this point in time? And what would NextEra look to be involved?

Well, we're encouraged. I think you all know, we brought a senior executive over from Energy Transfer, who now leads our gas pipeline effort. We have a substantial gas pipeline opportunity set already put together. Obviously, there's a lot of expansion needs around the Southeast as you start thinking about accommodating a lot of the large load demand here and the need that the states in the Southeast are going to have, the expansion opportunities off of MVP. And then as we look at our hub strategy, the need for additional gas supply, whether it comes from laterals or actual gas pipeline development connected with that build, that's encouraging in terms of what the investment opportunity might look like there.

So I'm very happy with the way things are trending. And I think we'll have some nice opportunities as we look to the future and have a renewed focus on gas pipeline development.

No, John, I agree with that. We're seeing -- we went on with our expectations. We talked about our transmission business jointly with electric and gas moving from mid-single digits into the 20s. And so I think that reflects some of our optimism. You've seen what we're doing around MVP and some of the opportunities for extensions or expansions on that. And I think John ran through it, we're participating on a number of different fronts. So our outlook is -- it feels good over the next several years to deliver against those expectations we laid out back in December.

And just a quick one there. With Texas development, specifically Permian egress and servicing LNG, any of those factors be of interest to NextEra?

Yes. You're not going to see us participating in LNG, if that's your question.

Yes. Jeremy, I think the key piece here is that as we're building through, we're putting together capabilities that allow us to provide solutions for our customers. And as we look at our customers, that's our customers in Florida, that's our customers in as we combine with Dominion in South Carolina, Virginia and North Carolina to our hyperscalers and to our customers across the country. We don't see things like LNG as being part of that. This is all about how do we provide solutions that allow us to grow our company and to help our customers.

Next question comes from Carly Davenport with Goldman Sachs.

Maybe just a couple of follow-ups. One on the FPL large load opportunity. It certainly seems like the customer interest is strong. Just curious what appetite you've seen from local communities in Florida to hosting data centers. Do you see any risks around local level pushback to kind of realizing that opportunity set?

Carly, it's Scott. I think the important points here are finding the right locations that are going to welcome that and transparency in the process, right? I think we all saw Project Tango in West Palm Beach. I want to reiterate, that was never part of our development expectations and shows the importance of site selection and transparency. So I think there are a lot of spots in the state of Florida, and we are working with those communities that are really interested and have good locations that will be the perfect host for data centers. And so I think as we've said a few times on this call, we're very confident, and that's why we increased our development expectations to 8 gigawatts by 2032.

Great. Okay. That's really clear. And then just one other follow-up on the federal hubs. I think you had previously indicated that the Texas project could start up on the earlier side, maybe late '27, early '28. I guess just with the timing of the definitive agreements maybe taking a bit longer, any shifts to the earlier start potential of that particular project? Or perhaps, asked another way, is there a time that you would need to see movement in order to hit those targets?

Yes. Our timing hasn't changed, Carly, from where the negotiations are to where we're looking for those projects to come online. So we're continuing to move the development in the background while we work out the Ts and Cs with the government entities. So our expectation around when those projects will come online remains the same.

This concludes our question-and-answer session and concludes our conference call today. Thank you for attending today's presentation. You may now disconnect.

Good morning, everyone. Welcome to the Annual Meeting of the Shareholders of NextEra Energy. I'm John Ketchum, your Chairman and CEO, and I hereby call this meeting to order. Let me begin by thanking all of you for attending this meeting or for listening via webcast.

I'd like to begin by making a few introductions. First, on the dais with me today is Charles Sieving, Executive Vice President and our Chief Legal Officer. Also in the room is David Flechner, Vice President of Compliance and Corporate Secretary, who will assist in the business of the meeting. Also with us today are other senior officers of NextEra Energy, Florida Power & Light Company and NextEra Energy Resources.

Next, I will introduce the individuals who are joining me today as nominees for election to our Board of Directors. Please stand when I call your name.

The nominees are: Nicole Arnaboldi, a partner of Oak Hill Capital, Nicole has been a Director since 2022.

Jim Camaren, former Chairman and CEO of Utilities, Inc. Jim has been a Director since 2002.

Naren Gursahaney, former CEO of the ADT Corporation, former Chairman of Terminix Global Holdings, previously known as ServiceMaster, as well as former CEO of ServiceMaster. Naren has been a Director since 2014.

Kirk Hachigian, former Chairman and CEO of JELD-WEN Holding, Inc. and former Chairman and CEO of Cooper Industries. Kirk has been a Director since 2013.

Maria Henry, former Chief Financial Officer of Kimberly-Clark Corporation. Maria has been a Director since 2023.

Amy Lane, former Managing Director and Group Leader of the global Retailing Investment Banking Group of Merrill Lynch & Co., Amy has been a Director since 2015.

Geoff Martha, Chairman and CEO of Medtronic. Geoff has been a Director since 2024.

David Porges, former Chairman of Equitrans Midstream Corporation and former Chairman and CEO of EQT Corporation. David has been a Director since 2020.

Dev Stahlkopf, Executive Vice President and Chief Legal Officer of Cisco Systems. Dev has been a Director since 2023.

Art Stall, former President of NextEra Energy's nuclear division and former Chief Nuclear Officer. Art has been a Director since 2022.

And Darryl Wilson, Former Vice President of GE Power. Darryl has been a Director since 2018.

I'd also like to confirm the attendance of our independent auditors, Deloitte & Touche. Representing the firm this morning are Tim Wilhelmy and Sarah Goldberg.

Now let's get to the business of the meeting, which will include a description of the items of business that require approval of shareholders, a discussion of those items only and a vote on those items. When we finish the business of the meeting, I will adjourn the meeting.

With that, I will ask for confirmation that we have a quorum present so we may conduct the business of the meeting.

Mr. Chairman, 90% of our outstanding shares entitled to vote are present, so we have a quorum.

Thank you, Charlie. We have 5 items of business today, including 2 shareholder proposals. Those shareholders or representatives are here to present them.

Item #1 is the election as directors of the nominees specified in the proxy statement.

Item #2 is the ratification of the appointment of Deloitte & Touche LLP as NextEra Energy's independent registered public accounting firm for 2026.

Item #3 is the approval by nonbinding advisory vote of NextEra Energy's compensation of its named executive officers as disclosed in the proxy statement.

Item #4 is proposed by Trillium Asset Management. Is the proponent or a representative of the proponent here today? If so, please step to the microphone, introduce yourself and present your proposal.

Thank you. Good morning to the Board, management and fellow shareholders. My name is Andrea Ranger, and I'm from Trillium Asset Management, and I'm a Director of Shareholder Advocacy there. And I'm here to move Proposal #4, which asks NextEra's Board of Directors to issue a report describing if and how it could align its operations and investments with the goals of the Paris Agreement.

First, I would like to express appreciation that you continue to hold the annual meeting in person, which we consider a best practice. Today, just as we're marking a tectonic shift in NextEra's business, we're also on the threshold of a new super cycle of utility infrastructure development.

The proposed acquisition of Dominion Energy would position NextEra to meet rising electricity demand in a much larger growing market. However, this new shift is not without risks. The company's new geographic range covers territories experiencing the same hurricanes and severe weather as Florida and will require ongoing system hardening to address climate risk. State and federal approvals must be obtained. And these are not the only challenges, public trust in utility companies appears to be at an all-time low with affordability being a primary concern.

When you pair this with the growing and vociferous opposition to data centers, it suggests NextEra must focus on building goodwill, trust and credibility to achieve success. Yet 6 months ago, we believe NextEra breached this trust by dropping its industry-leading zero emissions by 2045 target, which has been a positive signal for investors who care about climate change and long-term risks to their portfolios. It also announced plans to build natural gas plants to serve hyperscalers, threatening to lock in decades of emissions and create even greater risk for universal owners for whom climate change poses an undiversifiable and unhedgeable risk.

NextEra's rapid transition from a leading energy company to an all of the above energy company suggests it has not fully integrated its zero emissions by 2045 target into its long-term planning or prepared contingencies. That is, it appears that when NextEra announced this 2045 target, it seemed achievable. But with headwinds and data centers on the horizon, it simply became an impediment.

We believe a company of NextEra's scale and expertise is capable of finding meaningful solutions. There are opportunities to direct capital differently toward, for example, projects where NextEra could be the sole owner of renewable energy credits, investing in hydrogen generation and increasing investments in the venture capital arm.

In addition, demand-side management programs beyond short-term bill credits could reduce emissions while delivering long-term savings for the company's ratepayers. The proposal offers NextEra the opportunity to reexamine, reenvision a low emissions pathway, which we believe is a critical step to enhance trust and credibility with its customers, regulators and investors. Thank you for your time.

Thank you. I declare that Item #4 is properly presented.

Since no one has attended the meeting to present this proposal, I declare that Item #4 (sic) [ Item #5 ] is not properly presented. I think I said the wrong number.

It's presented properly.

I'm sorry. I mean it's Item #5. And Item #5 is proposed by Bauer Research. Is the proponent or a representative of the proponent here today? So please step to the microphone and introduce yourself and present your proposal. Thank you. I declare that Item #5 is not properly presented. Since no one has attended the meeting to present this proposal, I declare Item #5 is not properly presented and no votes will be cast on behalf of Item #5.

We will now have a discussion on the items of business on the ballot only. If you are a shareholder and have a comment or question on these items of business, please come to the microphone, state your name and the number of shares you own to introduce yourself. Are there any comments or questions on these items of business?

Seeing no other questions, and since under our bylaws, no other nominations or proposals would be timely, we will now conduct the vote. Those who want to cast a ballot or submit a proxy, please raise your hand and a balloting representative will assist you. If you have already sent in your proxy or submitting it now, you do not need to fill out a ballot.

[Voting]

It appears that all shareholders wishing to vote by ballot have done so, so I hereby declare the polls closed. I believe that the Inspector of Elections has provided the preliminary results of the vote to the Chief Legal Officer. Charlie, would you please announce the preliminary results?

Sure. Mr. Chairman, the preliminary results are as follows.

On Item #1, the election of directors, all nominees received at least 91% of the votes cast, and therefore, all of them have been elected.

On Item #2, 93% of the votes cast have approved Deloitte & Touche as our independent registered public accounting firm for 2026. So the appointment has been ratified.

On Item #3, 88% of the votes cast have approved by nonbinding advisory vote the compensation of our named executive officers, so the compensation has been approved.

On Item #4, nearly 35% of the votes cast are for the shareholder proposal related to Paris Agreement alignment. So that proposal has not been approved.

And on Item #5, related to a report on net zero business performance risks. That proposal was not properly presented, so no votes have been cast on that proposal. Had the proposal been properly presented, 1% of the proxies received were for it, so it would have failed.

Thank you, Charlie. As we have completed our business, I hereby declare that the NextEra Energy Annual Meeting of Shareholders is adjourned. Please be safe and enjoy the rest of your day.

Good day, and welcome to the NextEra Energy, Inc. First Quarter 2016 Earnings Call. [Operator Instructions] Please note that today's event is being recorded. At this time, I would now like to turn the conference over to Mark Edelman, Director of Investor Relations. Please go ahead, sir.

Good morning, everyone, and thank you for joining our first quarter 2026 Financial Results conference call for NextEra Energy.

With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunn, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Chief Executive Officer of Florida Power & Light Company; Scott Boris, President of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy.

John will start with opening remarks and then Mike will provide an overview of our results. Our executive team will then be available to answer your questions. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties.

Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of other factors discussed in today's earnings news release and the comments made during this conference call in the Risk Factors section of the company presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.nexteraenergy.com.

We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure.

With that, I'll turn the call over to John.

Thanks, Mark, and good morning, everyone. NextEra Energy is off to a terrific start to the year, delivering strong first quarter results.

Adjusted earnings per share increased by 10% year-over-year reflecting strong financial and operational performance at both FPL and Energy Resources.

Over the past several months, I've been working closely with our customers, policymakers and stakeholders, 2 things could not be clear to me. First, demand for electricity in this country is not slowing down. In fact, it's accelerating.

Our customers need power now and speed to power is essential. Second, building new power infrastructure must be done in a way that addresses affordability challenges and keeps bills low for existing customers.

NextEra Energy is doing both. We're able to meet this increased power demand while keeping power prices low, and we're doing it by leveraging our common platform. We build all forms of energy infrastructure.

We have experience across the entire energy value chain at massive scale with a balance sheet to back it up and we continuously drive operational efficiency across our portfolio to deliver value and affordability to customers.

At FPL, our value proposition is clear. Leverage a diverse generation mix and a resilient grid to provide low-cost, highly reliable electricity to our customers every single day.

At Energy Resources, customers choose us because -- they know we have an unmatched decades-long track record of building energy infrastructure that delivers cost-effective solutions tailored to their needs.

NextEra Energy was built for this moment of extraordinary growth with a service area that spans 49 states and with more than 12 ways to grow, I couldn't be more excited about our ability to deliver for our customers, our shareholders and our country.

Importantly, our forecasted growth is visible and balanced between our regulated and long-term contracted businesses. Florida is a prime example of how we reliably serve growth while keeping bills low.

The Sunshine State has been one of the fastest-growing states for decade and continues its rapid expansion today. Florida is already a $1.8 trillion economy, the 15th largest in the world, and the growth isn't slowing down.

Florida's GDP is forecasted to grow 4.7% annually through 2040. In fact, in the first quarter, FPL added nearly 100,000 customers compared to the prior year comparable period. For perspective, roughly 90% of utilities nationwide serve less than that day to day.

FPL added these customers to our system in just the last 12 months. FPL supports this growth by building the right new power generation and the right new transmission infrastructure across the state.

In fact, FPL expects to invest between $90 billion and $100 billion through 2032, primarily to support Florida's growing economy. Earlier this month, FPL filed its annual 10-year Ciplan, detailing its approach to reliably and cost-effectively meet the growing need for electricity in Florida.

The plan shows roughly 4 gigawatts of new gas-fired generation, complementing over 12 gigawatts of solar and over 7 gigawatts of storage solutions over the next 10 years which would further diversify FPL's generation fleet.

Yet even with significant capital investment, bills have actually gone down over time. When you adjust for inflation, the typical FPL residential customer bill is 20% lower today than it was 20 years ago.

In nominal terms, FPL's bills are approximately 30% below the national average and only projected to grow on average about 2% annually through the end of the decade. On top of that, FPL delivers customers top decile reliability.

That's approximately 68% better than the national average. Low bills and high reliability don't happen by accident. Instead, this performance is a direct result of smart, disciplined capital investments, coupled with the relentless focus on operating efficiently.

This is a value proposition that not only best serves our existing customers, but also works really well for new large load customers like hyperscalers who value reliability, cost and speed to market, all things we can deliver. As part of FPL's approved 4-year rate settlement agreement that went into effect in January, we proactively developed a large load tariff to provide the necessary certainty for both customers and regulators, balancing consumer protections with a competitive rate.

Again, both things are possible with the right structure and a smart approach. FPL's speed-to-market advantages, combined with its best-in-class service is creating significant large load interest. So far, we have about 21 gigawatts of large load interest at FPL.

Of that, we are in advanced discussions on about 12 gigawatts, a portion of which we believe we could begin serving as soon as 2028. We are making good progress on this front, and we continue to expect at least one large load customer to sign up for capacity under FPL's tariff by the end of the year.

Initially, we expect every gigawatt of large load under FPL's approved tariff to be equivalent to roughly $2 billion of CapEx and to earn the same return on equity as other FPL investments.

Energy Resources continues to grow its regulated electric and gas transmission portfolio. It can't be stressed enough. -- linear infrastructure is absolutely vital to meeting America's electricity demand. Pipelines fuel power plants and transmission lines deliver electricity into communities.

NextEra Energy Transmission is one of America's leading independent electric transmission companies. Our scale and experience position us well as we execute on new transmission opportunities across America. In fact, just this week, one of NextEra Energy transmission subsidiaries, Lone Star Transmission received ERCOT approval to build portions of 2 new transmission lines in North Central Texas to improve reliability in the region.

Lonestar's investment share of approximately $300 million represents a roughly 40% increase in Lone Star's rate base. NextEra Energy Transmission has now secured more than $5 billion in new projects since 2023.

In total, NextEra Energy Transmission has regulated and secured capital of $8 billion almost twice the rate base size of Gulf Power when we bought the company in 2019.

We also continue to execute against our plan to grow our gas transmission business. Energy Resources now has ownership interest in more than 1,000 miles of FERC-regulated pipelines. Importantly, it's a portfolio with a number of organic expansion opportunities.

All told, we expect our combined electric and gas transmission business at Energy Resources to grow to $20 billion of total regulated and investment capital by 2032, a 20% compounded annual growth rate off a 2025 base. We recently added new senior leadership to our pipeline business to focus on growth opportunities, demonstrating our commitment to expanding our gas transmission business.

Turning to Energy Resources' long-term contracted business. As I said at the outset, it simply can't be overstated. Our customers need a lot of power, and they need it now. Renewables and storage continue to be the fastest way to get new electrons on the grid until additional gas-fired generation can be built.

This is why we had a record quarter at Energy Resources, adding to backlog 4 gigawatts of new long-term contracted renewables and storage projects. This includes another strong quarter of battery storage origination at 1.3 gigawatts.

Importantly, we have 4 growth avenues for battery storage. We build stand-alone battery storage co-locate storage at existing sites, develop storage as a grid solution and expand batteries from 4 hours to 8 hours at existing storage projects.

Our stand-alone and co-located battery storage pipeline sits at over 10 gigawatts, excluding expansion opportunities. Bottom line, in a market driven by a significant need for quick capacity solutions Energy Resources remains well positioned to serve customers with battery storage.

We are also off to a terrific start executing against our data center hub strategy, which is built on the power of scale. Scale shortens development pipelines reduces execution risk and keeps costs low as we build the infrastructure needed to meet data center power demand.

To this end, last month, the U.S. Department of Commerce selected Energy Resources to build 9.5 gigawatts of new gas-fired generation to serve large load. The projects are in connection with Japan's $550 billion investment commitment to the United States as part of the U.S.-Japan trade deal.

These are 2 separate projects, 1 located in Texas, and the other located in Pennsylvania. Both are designed to serve large load in each state. The U.S. and Japan would own the projects while Energy Resources would develop, build and operate them.

We are actively developing both projects, advancing site development, procurement, permitting and commercial structuring as we work toward definitive agreements with the U.S. and Japan.

The projects are drawn from our existing group of data center hubs, a group that totals over 30 hubs with a year-end goal to secure roughly 40. We now have 4 origination channels feeding into our base case goal of securing 15 gigawatts of new generation to serve large load by 2035.

These 4 origination channels can also help us achieve our upside case of 30 gigawatts or more by 2035. We are working hard to meet this goal with all forms of energy, approximately 50% from gas-fired generation and the remainder from all other forms of energy.

The first channel is working directly with hyperscalers to power their data centers. These are companies we have good, long-standing relationships with. A great example is our collaboration with Google to recommission our Glenora nuclear plant outside Cedar Rapids, Iowa.

Our second channel is working with investor-owned utilities. A perfect example is the joint development agreement, which we signed with Excel earlier this week to jointly plan and rapidly deploy new generation, storage and transmission to capture accelerating data center demand across Excel's 8 state service territory.

Our third channel comes through our strong relationships with co-ops and municipalities. Our plan to work with Basin Electric to develop a 1.5 gigawatt combined cycle plant in North Dakota is a great example.

Our co-op and municipality customers value our skills our capabilities, our customer relationships with hyperscalers and our balance sheet, making us the perfect partner. Working with the federal government to build new natural gas power generation is our fourth channel.

On Duane Arnold, we continue to make good progress. Earlier this month, the Nuclear Regulatory Commission approved a license transfer from the plant's minority owners Central Iowa Power Cooperative and Corn Belt Power Cooperative to NextEra Energy.

This key federal approval clears the way for Energy Resources to finalize the acquisition of their 30% ownership stake, which will give us full ownership of Duane Arnold. At the same time, the process to regain interconnection rights for an Duane Arnold continues to progress as expected. The plant remains on track to reenter service no later than Q1 2029.

We also continued to evaluate Advanced Nuclear closely evaluating the capabilities of various SMR OEMs. We have 6 gigawatts of SMR colocation opportunities at our nuclear sites, and we are working to develop new greenfield sites.

Of course, any new nuclear build would have to include the right commercial terms and conditions with appropriate risk sharing mechanisms that limit our ultimate exposure. Given that we built more energy infrastructure over the last 20 over the last 2 decades than any other company, that means we have a lot of operating assets coming off contract.

In fact, we have up to 6 gigawatts of renewables and 1.5 gigawatts of nuclear recontracting opportunities through 2032. The timing couldn't be better. The projects were generally built and contracted years ago during much less favorable market conditions.

As the PPAs begin to expire over the next several years, we believe recontracting will command a higher price. In fact, in the first quarter, we contracted over 600 megawatts of existing projects, locking in contracts for an average of over 18 years, reflecting the strong electricity demand environment we're seeing today.

Energy Resources customer supply business advanced its growth strategy during the first quarter, highlighted by our strategic acquisition of Symmetry Energy Solutions which is 1 of the U.S.'s leading natural gas suppliers.

Symmetry operates in 34 states and provides us access to additional physical assets, enabling us to deliver a broad range of solutions for our customers. In fact, across all of our businesses, we now transport and deliver approximately 2.9 trillion cubic feet of natural gas annually or about 8 billion cubic feet per day making us one of the largest and most active gas suppliers serving wholesale, retail and industrial customers nationwide.

And while we continue to grow and to deliver value and innovative solutions for customers every single day, we're also focused on making ourselves better and taking steps to redefine the future of the entire electric industry.

We're doing this through our new Rewire initiative and a partnership with Google Cloud. Rewire is a company-wide initiative to reimagine how we work and how we do business paired with an enterprise-wide AI transformation that we expect to unlock top line growth and cost savings opportunities for our customers.

At the same time, Rewire is serving as our AI product development platform. We believe the new AI tools and solutions that we build will not only redefine how we do business and create competitive advantage, but will also help transform how our industry generates and delivers electricity and serves customers.

Partnering with Google, we are delivering these products to the utility industry to unlock savings for American homes and businesses. In the first quarter, we brought to market our first Rewire products.

For example, Conduit is an AI-powered tool designed to upskill our already best-in-class renewables workforce, increasing their efficiency in the field and keeping our power plants up and running.

Another product called Generation Entitlement proactively identifies abnormal equipment conditions, enabling teams to take early action and optimize power plant performance across the fleet.

And a product called Grid Composer uses AI to optimize and orchestrate all aspects of the power generation process. It brings real-time recommendations into one place to enable faster more informed decisions around unit commitment, power and fuel dispatch and maintenance scheduling.

Importantly, we believe these tools have the potential to drive significant savings for customers. FPL's bill today is already approximately 30% below the national average. One of the reasons that's possible is because of our relentless focus on technology and driving costs out of the business.

FPL's nonfuel O&M is more than 71% lower than the industry average. In fact, we're 50% more cost efficient than the second best utility in America. We believe our Rewire products reinforce our position as the lowest cost electric utility operator in the country.

But it doesn't stop there. By working closely with hyperscalers, we're structuring solutions that support growth while keeping power prices affordable for American families. As we've discussed previously, that's why Energy Resources has been focused on the bring your own generation, our BYOD model that ensures large load customers pay their fair share.

Not coincidentally, that happens to be perfectly aligned with where the market and policymakers are moving. The concept is simple. We build energy infrastructure for hyperscalers and they pay for it. Everyday Americans do not. That's the way to power America's growth and keep power bills affordable but we believe there's much more to the story.

Remember, many parts of the country are starting at real capacity deficits as we approach the end of the decade. BYOD Power Solutions could become critical elements of a resilient grid, if we start to think about them as dispatchable resources during times have extreme demand.

It's exactly what we're working on with NVIDIA a collaboration we announced in the first quarter. Just think about being able to temporarily cycle down or shift data center activity for a few hours during extreme cold or extreme heat.

That would allow local load serving entities to use that power to meet customer demand when power is scarce and at a higher cost, increasing reliability and lowering power bills for everyday Americans. This is another example of how we're trying to lead and move to where we believe the market is going to be.

Bottom line at this unique moment in our industry, scale, experience, innovation matter more than ever. And our common platform provides us with what we believe is an unmatched competitive advantage -- it's more than just our operating scale.

We have a robust supply chain. We have global banking relationships. We worked hard to maintain one of the largest and strongest balance sheets in the sector and we use technology and data to deliver solutions for our customers.

This platform is what enables us to build all forms of energy across the energy value chain. It's also hard to replicate -- that's because we've been building it, refining it and optimizing it for decades.

It's how we deliver customers a reliable and affordable solutions they need when they need it, no matter where they are in America. And as power demand rises, these unique capabilities become increasingly important, all of which is a big one for our customers, stakeholders and shareholders, we are honored to serve.

I'm pleased with how we've started the year and even more excited for the rest of 2026 as we execute on our more than 12 ways to grow. With that, I'll turn the call over to Mike.

Thanks, John. Let's begin with FPL's detailed results. For the first quarter of 2026, FPL's earnings per share increased $0.06 year-over-year. .

Regulatory capital and growth of approximately 8.8% was a significant driver of FPL's earnings per share growth versus the prior year comparable quarter.

FPL's capital expenditures were approximately $3.2 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion. For the 12 months ending March 2026, FPL has reported return on equity for regulatory purposes will be approximately 11.7%.

During the first quarter, we utilized approximately $306 million of the rate stabilization mechanism, leaving FPL with an after-tax balance of approximately $1.2 billion. This quarter, FPL placed into service approximately 600 megawatts of new cost-effective solar, putting FPLs owned and operated solar portfolio at over 8.5 gigawatts.

Key indicators show Florida economy remains healthy. Florida continues to be one of the fastest-growing states in the nation and had 3 of the 5 fastest-growing U.S. metro areas between 2024 and 2025.

And as John mentioned, FPL had a strong quarter of customer growth with the average number of customers increasing by nearly 100,000 from the comparable prior year period. FPL's first quarter retail sales increased by approximately 3.4% and year-over-year.

After taking weather into account, first quarter retail sales increased by roughly 0.3% on a weather-normalized basis from the comparable prior year period driven primarily by continued favorable underlying population growth.

Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 14% year-over-year. Contributions from new investments increased $0.04 per share year-over-year, primarily reflecting continued growth in our power generation portfolio.

Our existing clean energy portfolio increased $0.01 per share during the quarter. The comparative contribution from a customer supply business decreased by $0.04 per share primarily driven by lower production volume in our upstream operations and continued normalization of margins in our full requirements business.

Contributions from NextEra Energy Transmission increased $0.05 per share year-over-year, net of financing costs, driven by the sale of a 50% equity interest in a transmission asset located in California.

We had no change from other impacts as lower tax costs were largely offset by higher financing costs, which are primarily related to new borrowings to support our new investments.

We remain well positioned to navigate the current interest rate environment through our over $43 billion interest rate hedging program. We have also planned for potential trade impacts and positioned ourselves to deliver and execute for our customers.

That's why we proactively secured supply to support both FPL and Energy Resources development plans, including the development of our national data center hub footprint.

For solar, we have secured panels through 2029. We're also well protected for battery storage with competitively priced domestic supply also secured through 2029. We've secured key wind components domestically for our new build expectations through 2027.

And we have sufficient transformer capacity to support our build forecast through the end of the decade. Energy Resources had a record quarter of new renewables and storage origination with 4 gigawatts added to the backlog.

With these additions, our backlog now totals approximately 33 gigawatts after taking into account 0.3 gigawatts of new projects placed into service since our last earnings call.

This highlights the continued strong demand for renewables and storage. And our backlog additions reflect the diverse power demand we're seeing across our customers. Roughly 30% of our backlog additions are driven by hyperscalers while the remaining 70% comes from power utility customers, including cooperatives and municipalities.

Turning now to our first quarter 2026 consolidated results. Adjusted earnings from Corporate and Other decreased by $0.02 per share year-over-year. Our 2026 adjusted earnings per share expectations range of $3.92 to $4.02 remains unchanged, and we are targeting the high end of that range.

We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and are targeting the same from 2032 through 2035. And all off the 2025 base of $3.71 adjusted earnings per share.

From 2025 to 2032, we expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range. And we also continue to expect to grow our dividends per share at roughly 10% per year through '26 and of a 2024 base and 6% per year from year-end 2026 through 2028.

As always, our expectations assume our caveats. This concludes our prepared remarks. And with that, we will open the line for questions.

[Operator Instructions] And today's first question comes from Steve Fleishman with Wolf Research.

So the -- just a couple of questions on the U.S. Japan projects. First of all, I guess, have anything you could share on milestones and time line to get to a final agreement there? And just do you have the turbines for these projects?

And also just like pipeline and transmission access, is that something you might be able to participate in as well helping to build pipe or transmission for these projects?

Yes. Steve, I'll go ahead and take this. This is John. First of all, on the milestones, we continue to be heavily engaged, as you would expect, with both the Department of Commerce and the Japanese government. .

Right now, as we negotiate definitive agreements, we're looking to have those completed in the next 2- to 3-month period on both of those projects. So that's the first piece on milestones and time line. And then after those are executed, you can imagine the agreements themselves will contain a series of milestones with payments tied to those milestones as they are achieved.

On the second piece, in terms of product development or project development, we are heavily engaged at both sites, both the Texas site and the Pennsylvania site in terms of advancing those sites forward in terms of turbine supply, we'll have ample supply to turbines.

Not concerned about that for both of those projects. And in terms of gas pipeline access, obviously, that's one of the skills that we bring to the table.

Anderson at Texas is strategically located because it's one of our partners there is Comstock, and so we have [indiscernible] gas supply available in the region, which makes that project extremely attractive. And then as we advance Pennsylvania, that will be a key part of the decision-making matrix as we look to further the development activities there and then, obviously, transmission access on both of those sites is something that we will obtain as we move those projects forward and the development pieces, that's what we do.

That's what we do every day. And I think that was a big part of what I was trying to get across in my remarks. When I look at the environment today, and I think a big reason we got these awards with -- from the DoC is there's really nobody that looks like us today. There's nobody out building generation at scale.

We intentionally went out and shifted our strategy last year to bring your own generation. We knew that was where the market was heading. We saw it ahead of time. I think based on where our peers are and we set up our strategy around it, our supply chain around it, our development activities around it.

And a lot of what we're doing, not only with the federal hubs, but outside of it with the data center hubs is we know the market wants power solutions at scale. And to do that, you have to have a combination of capabilities and skill sets that we've been building for 2 to 3 decades at this company. They're very hard to find.

They're very hard to put together if you don't have them today. And so being a builder in today's market across 49 states, with all the know-how and capability sets that we have, I think, really sets us apart from the competition.

Great. Just one other unrelated question. Good to see the 600 megawatts of recontracting being done. Do you have any data point on the price increase price change in the new contracts versus the old ones?

Yes, Steve. The pricing on the new contracts is roughly a $20 per megawatt hour on average increase relative to the prior realized pricing. .

And today's next question comes from Julian Dumolin Smith with Jefferies.

Genuinely. I just wanted to follow up a little bit on the linear infrastructure. How do you think about expanding this business? I mean you talk about hires, et cetera. But can you talk a little bit about -- is this an acquisitive strategy potentially? Or how do you think about building or building, rebuilding, however you want to frame it?

Yes. So I'll take it in pieces. I'll start with transmission, then I'll talk about pipelines. But first of all, when you think about the transmission business, I mean, this is really just leveraging all the skill sets that we have on the generation side because when you think about what it takes to build generation and what it takes to build linear infrastructure.

It's a lot of the same skill sets, right? You've got to have a very sophisticated land operation. You have to be able to really understand how to manage the permitting and approval process. You have to have a good ground game in terms of reaching out to local communities, working with stakeholders at the state and the federal level.

And you have to find projects that make sense that will result in affordability for customers. And these are the things that we do on the generation side every day that transcend over into linear infrastructure around transmission.

And then given all the know-how we already have from FPL and the success we've had building transmission in Florida, all that from an operations standpoint, extends out into what we're doing there.

So terrific greenfield opportunities. It's a lot of the same strategic steps we take around generation. So I think those give us a big leg up. In terms of acquisitions, sure, I mean the -- if we found the right project that made sense, we could look at acquisition.

It would depend on what stage of development it is. I mean sometimes there are good development assets that make sense that could be a good fit with our overall portfolio. Wallis lean towards greenfield for the reasons I just gave.

Buying operating transmission assets, sure. I mean, if we could be opportunistic about that and then they made sense and we're in the right places. That's something that we could continue to look at as well.

But where we've seen a lot of success on the transmission side is our ability to partner with incumbents. And the relationships that we've been able to build across the investor-owned utility co-op and municipality space, I think, not only lens and serves us well on generation, but on transmission as well.

And we're just seeing a lot of success through those partnering arrangements. So I feel great about where the transmission of linear infrastructure opportunity set sits. And then on pipelines, that's just naturally capitalizing on all those same greenfield skill sets I already talked about around generation and transmission, they equally applied to the pipeline business.

And then you think about all the different skill sets that we have just around market knowledge on where transmission can -- where gas transmission can make sense. The Symmetry acquisition being a big part of that.

I mean, you're one of the largest movers of gas molecules in the United States, you also probably have more information and more knowledge as to where gas pipeline expansions are required.

It really helps inform our decision-making around our data center hubs on where they're going to be most economical and really can be optimized around gas.

So all the investments and other pieces that we have around customer supply and symmetry feed in equally well in the pipeline business. And it's a natural extension of our ability to enable data center hubs, right, by being able to build gas or build transmission to be able to serve hyperscalers because we've really moved away from, hey, let's go build 200 or 300 megawatts.

That just doesn't get it done for hyperscaler. We're looking at building 2 to 5 gigawatts for hyperscalers. You would just be amazed at the amount of interest and the amount of demand that we are seeing in the -- for that solution we are really unique in the ability to deliver that product because you have to have all the things I talked about in my prepared remarks to be able to do it and to be able to do it right.

Awesome. And if I can just squeeze in a quick follow-up here, maybe this where Steve was going. I mean, how would you set expectations for other non-Japanese tide projects as far as the BTM effort goes.

I mean BTM is obviously linked to this time to power dynamic, creating a little bit of an accelerated time line, I suspect, but I'm curious how you'd frame that.

Yes. Doug, great question, Julien. I mean -- and so -- we've talked a lot about our ability to work with co-ops and municipalities, and that really helps enable situations where we can move behind the meter in those service territories. -- maybe build something out that ultimately has what I call the extension core, right, the access to the grid over time.

A lot of -- because even if you start behind the meter, you have to be able to demonstrate a path to be front of the meter within 3, 4, 5 years. But a lot of the discussions that we're having around our data center hubs are starting behind the meter, right, islanded solutions, I think more and more of the market is going to go there, particularly in areas of the country where the load interconnect process is taking 5 to 7 years to clear. People can't wait.

There's too big of an opportunity cost around the data center business model and the cloud storage model to wait 5 to 7 years for load interconnect. We solve that problem with the behind-the-meter solution, but you have to know what you're doing.

You have to know where to site those. You have to know how to bring a number of technologies to bear. And you have to have the foresight to the plan and incredibly lay out a situation where you can be interconnected within 3, 4, 5 years because that interconnection allows you to really optimize the value of that data center because I truly believe that we need to be as a country looking at data centers as giant batteries that sit behind the grid.

And I talked about our NVIDIA collaboration being able to flex chips in terms of how they consume and use power. And given all the software we've developed around dispatchability of batteries, we're uniquely positioned to design a product.

And if you combine it with our customer supply business to firm and shape products are in scarcity intervals, hot summer day, cold winter day, where a data center can be dispatched like a battery and think about what that does for affordability for customers in the region when you're providing that excess supply that really helps to take a big hit out of the bill for everyday Americans that may struggle to pay those during the scarcity times that we have seen over the last 5, 10 years in this industry.

So something we're very focused on, something hyperscalers are very interested in.

And I think it's unique for NextEra because we have all the expertise around technology, our partnership with Google being a part of that.

Next question comes from Shar Purreza with Wells Fargo.

John, just on large-scale nuclear. I know the government and hyperscalers have indicated some level of interest in the AP1000. And there seems to be this consortium of regulated utilities forming that could consider new nuclear development as a group with a good portion of the cost inflation above budgeted amounts being borne by the hyperscalers, so the off-takers Turkey Point is obviously under an active review with the NRC. Are you sort of part of this consortium?

Is it something you would consider with the right cost overrun protections? Or are you just really focused on recontracting like Point Beach?

Yes. So let me take those in pieces. So the first part, you're right. I mean, Turkey Point is kind of an unusual position because Turkey Point 6 and 7 already have the licenses, right?

And so you kind of skipped to the front of line on 7 to 8 years of approvals that would otherwise be required. So we've always had Turkey Point as a what I'll call a natural gas fuel hedge if we wanted to do something there around an AP 1000.

That being said, for us, I think we would probably be more inclined to a toe in the water or maybe an SMR down at Turkey Point rather than an AP 1000. And we would do it in a way where we could combine, like I always like to talk about the 4 wallets, right, which is the OEM, the developer, the hyperscaler and the federal government because we asked you have to, one, be comfortable with the technology and the technical feasibility of it will work at the end of the day.

And number two, as we keep saying, it has to be structured in a way that protects our customers and protect our shareholders. And so that's what we would look to do. We would not be interested in doing that together with a consortium.

We have a lot of experience here. We feel very comfortable in our ability to do this on our own. But you got to get the insurance tower, so to speak, right, in terms of who takes that ultimate cost overrun risk.

And so beyond Turkey Point and if you think outside of Florida, we are working closely with OEMs and with hyperscalers. As you know, we have our national collaboration with Google, for example, around advanced nuclear we're looking together with Google where that might make the most sense.

We have 6 gigawatts of SMR capacity at our existing sites. We have the ability to greenfield development as well. But again, any of those opportunities have to include those 4 wallets, and we have to get the technical and the commercial risk sharing right for those to advance.

Got it. So I guess your view is despite the learning curves of Vogtle, the SMRs are still more economical than an AP-1 down?

Yes. I mean, I just -- I look at it there's 2 types of SMRs, right? There's Gen 3, which are just what I would call a downsized AP1000, right? So you're looking at building an AP1000 just in a smaller chunk, a little bit of a smaller bet GE has got the Ontario project going on now, he'll be a lot of lessons aren't coming out of that.

And the Gen 4s really are -- you're taking 2 step changes around Gen 4, Gen 4 is the technology, which is not really an extension of an AP1000 that tried proven and you're jumping into an additional fuel risk withthe highly enriched uranium, which we still haven't really perfected in this country. So our focus would be more around the Gen 3 technology.

Got it. And then just lastly on Point Beach, we're getting close to when a decision needs to be made on the PPA, especially for the offtaker who's going to need to plan ahead on new generation needs if the PPAs aren't renewed.

I guess how are the dialogues going with WEC? Do you have an interest there from a hyperscaler? I guess when can we get an update around Point Beach?

Yes. Thanks, Shar. There is a lot of interest for Point Beach, as you might imagine, right? I mean a lot of interest from a number of folks. And so we are just being diligent and making sure that we make the right decision around Point Beach.

I'm not going to call out who exactly we're talking to what the names are. But needless to say, just a lot of interest around that asset for obvious reasons, given where it's located and all the hyperscaler opportunities around it.

And so discussions are continuing to progress there. And we like what we see, and it's an attractive and a valuable asset.

The next question is from Bill Appicelli with UBS.

Just addressing the backlog update. I think you've seen some strong progression here from about 3 gigs in Q3 to 3.6 to now 4 gig. So would you say this reflects some acceleration of the contracting ahead of the tax credit roll off at the end of the decade? Or is this just underlying demand being exceedingly strong irrespective of the tax credits?

It's Brian. I'd say at this point, we're actually -- we haven't actually stepped into the acceleration yet. This is just a reflection of some of the growth that we've seen out in the market.

And so it's really the reflection of the growth as opposed to acceleration. We'll probably see that as we start to move out here in the coming quarters, but this is just kind of fundamental demand for fundamental growth that's tied to what's the best economic answer for the demand that's in front of us as opposed to people trying to move in, in advance of the tax credits.

Yes. And the other thing I would add to that is I may comment in the prepared remarks about where we stand in our supply chain, right, with solar panels, bought through 29 transformers through the end of the decade, batteries are 29 wind components so on and so forth.

We are so well positioned to capitalize on this back-end demand that we see coming, which is again, I think, going to be a fantastic opportunity for this company. And you combine that with the safe harbor position that we already have that we were quite aggressive on a while back.

I just can't imagine there's any company in America better positioned to seize upon the demand that we are going to see over the next 3 to 4 years and beyond for renewables.

And for storage, particularly given how long it's taking to build gas-fired generation in this country. And like I keep saying, we're building it all. We're a big believer that gas is needed and is going to provide a big impact.

But it's not quick, right, to get the market in solar and storage are. And -- and we have positioned our company around the ability to seize upon those opportunities. I think you'll see in the first showing of that here this quarter, and we look forward to many more strong quarters to come.

So there's upside to 4 gig a quarter run rate, I guess, is another way to put that. Well, you said it, I didn't, but we feel really, really good about where we sit.

Okay. And then just shifting gears outside of the Texas and Pennsylvania projects, can you just speak a little bit to the gas generation build contracting. I know it's sort of subsumed in some of the hub strategy, but it does seem like there's some complexities in the market around getting deals announced on on our new build gas contract to your point that you just made there in those in my prior question.

Is there anything you can point to in terms of gating factors? Is it just the complexity around managing fuel risk? Or is it getting the offtakers to be able to commit to that? Just curious there.

Yes. No. I mean, look, I think that gas build-out continues to advance around the country. But remember, we were starting gas-fired generation development we be in the industry, right, from kind of a standing start a year or 2 ago.

And so we've seen manufacturing start to ramp up. We've seen EPC labor respond as well. But I think the biggest constraint that I see in the market right now is getting gas built faster is labor, right?

It's EPC contractors. We used to have 9, 10, 11 EPC contractors building gas plants back 10, 20 years ago. Some filed bankruptcy, some pivoted and other businesses.

If you look at really what I would call the 4 EPC contractors that we do business with today, a lot fewer than what we've ever had and the squeeze on labor in the market today when you're building a gas plant, pipe fitters, welders, so on and so forth, the same EPC firms are building LNG terminals, they're building data centers there in other parts of the market.

And so lining up the labor, getting the labor secured and in place, that's a piece of it. And then depending on where you're building permitting. We keep talking about permitting reform. We have got to get permitting reform done in this country.

It is imperative that we get that done, both for linear facilities. And also just to expedite permitting at the state and the federal level.

Those are the things more than anything that I think are contributed. The gas will be built, that will come online. And NextEra is one of the companies that will drive that, but it's just not as fast as other other forms of generation.

So that's why we keep saying we need it all, right? We need to put it all together. And when you get every electron on this grid as fast as possible, speed to power is essential and that will allow us to unleash American Energy dominance across America.

The next question comes from Nick Campanella with Barclays.

A lot of good updates. So I just wanted to ask quickly on the 1 gigawatt you want to deliver on at FPL. Is that already kind of in the plan? And just we noticed the capital expenditures are now $12 billion to $13 billion for '26 million.

And I think at the analyst event, there was $10 billion to $11 billion. So a nice increase there. And -- just wondering if that's for the 1 gigawatt you were already talking about. Is that kind of the new run rate we should expect going forward for FPL understanding that I think you just reaffirmed the total CapEx outlook today.

So a few things on nice Don here, do things on that. I think, firstly, we've not said how many gigawatts or gigawatt of large OE expected I think we've only said that we expect to have a large load transaction finalized this year.

And so -- but we have not set at 1 gigawatt or what that number would be. Second piece is, as you do look at the CapEx increase, this is really aligned with what John said earlier about being prepared.

So as we brought in and secured solar supply, a piece of that solar supply is bringing that in today at locked-in prices to remove any trade impacts and we'll be able to use that to cost effectively serve our customers in Florida in the future, but that a piece that was pulling in some of those capital expenditures.

So FPL situated extremely well for low cost to our customers by taking proactive measures to reduce any trade impacts.

Understood. Okay. And then just maybe if I can one follow-up on the Japan deal and framework. It's just our understanding that, that's a bit of a kind of capital-light opportunity, they're the owners, they're the builders.

So just how would you kind of view the return of that opportunity to like the 13% to 20% plus equity IRR that you had out there at the investor conference.

It's just the 9.5 gigawatts is a very large number and trying to understand how that supports or accelerates the 8% plus EPS view.

Right. So to your first piece, remember, this is a capital light investment essentially 0 capital for us. So from a returns perspective, it's essentially infinite. We are putting no capital down, and we would potentially receive fee streams for a long period of time.

Importantly, in order for us to capture that, our incentives are 100% aligned with the U.S. government and with Japan because we will need to perform in order to receive those payments.

And they're also through the duration of the assets. So they are not just development payments or construction payments but also ongoing O&M payments.

As you look at what those fees can be and what that value can be to NextEra, I think we'd like to take the time to make certain that we have the contracts in place before we know what that will be.

But we are looking at these investments at making this time investment and working through these because they can be value accretive to our shareholders.

And at this time, this concludes our question-and-answer session as well as today's conference. Thank you for attending today's presentation. You may now disconnect your lines, and have a pleasant day.

Good morning, and welcome to the NextEra Energy, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead, sir.

Good morning, everyone, and thank you for joining our Fourth Quarter and Full Year 2025 financial results conference call for NextEra Energy. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunne, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Chief Executive Officer of Florida Power & Light Company; Scott Bores, President of Florida Power & Life Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy. John will start with opening remarks, and then Mike will provide an overview of our results.

Our executive team will then be available to answer your questions. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements, including if any of our key assumptions are incorrect because of other factors discussed in today's earnings news release and the comments made during this conference call and the Risk Factors section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.nexteraenergy.com. We do not undertake any duty to update any forward-looking statements.

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure.

With that, I'll turn the call over to John.

Thanks, Mark, and good morning, everyone. NextEra Energy had strong operational and financial performance in 2025, delivering full year adjusted earnings per share of $3.71, up over 8% from 2024 and slightly better than what we communicated as the top end of our range at our investor conference in December. Our expectations are to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032, and we are targeting the same from 2032 through 2035, all off the 2025 base.

As we enter a new year, we're focused on the opportunity in front of us. America needs more electrons on the grid, and America needs a proven energy infrastructure builder to get the job done. That's who we are, and that's what we do. NextEra Energy develops, builds and operates energy infrastructure across the energy value chain, whether it's power generation, storage or linear electric and gas infrastructure. It's why I believe we are well positioned for the future as we execute against our strategic plan with the over 12 ways to grow that we presented in December. Importantly, our forecasted growth is visible and balanced between our regulated and long-term contracted businesses.

Last year was about laying the groundwork for the future of our business. This year is about execution, which is our strong suit. Let's start with FPL, which begins the year with a new 4-year rate agreement that runs through the remainder of the decade. The Florida Public Service Commission unanimously approved the agreement in November and issued its final order last week. The agreement allows us to make smart, long-term infrastructure investments on behalf of our customers while keeping bills well below the national average. FPL expects to invest between $90 billion and $100 billion through 2032, primarily to support Florida's growth while continuing its track record of keeping customer bills low and reliability high.

While customer affordability is a major concern throughout many parts of the U.S., FPL's typical retail bill today is more than 30% lower than the national average. And FPL expects typical residential customer bills to increase only about 2% annually between 2025 and 2029, which is lower than the current inflation rate of about 3%. Keeping customer bills low is our #1 priority, and we do that by continuously investing in and executing against the best-in-class operating model. That discipline delivers real results. FPL's nonfuel O&M is more than 71% lower than the industry average, reinforcing our position as the lowest cost electric utility operator in the country.

The 4-year rate agreement also provides an allowed midpoint regulatory return on equity of 10.95% with a range of 9.95% to 11.95%. FPL's equity ratio remains at 59.6%, and the agreement includes a rate stabilization mechanism. FPL's agreement also includes a large load tariff. We believe the tariff strikes the right balance by providing hyperscalers with speed to market at a competitive price while just as importantly, protecting our existing customers from bearing infrastructure build-out costs needed to support hyperscalers.

FPL's speed-to-market advantages, combined with its best-in-class service is creating significant large load interest to the tune of over 20 gigawatts to date. Of that, we are in advanced discussions on about 9 gigawatts, a portion of which we now believe we could begin serving as soon as 2028.

For context, every gigawatt is equivalent to roughly $2 billion of CapEx and earns the same return on equity as other FPL investments. Florida's growth requires continued investment in energy infrastructure. The state is expected to surpass 26 million residents by 2040, but it's more than just people moving into the state. Today, Florida is a $1.8 trillion economy, the 15th largest economy in the world if the state were a stand-alone country. Florida leads the nation in key economic indicators like income migration, manufacturing job growth and corporate headquarter relocations. And that's what makes Florida's growth different than in the past. A diverse set of high-growth industries is bringing new businesses to the state from the space coast to Miami and all across Florida. It's why Florida expects to add 1.5 million new jobs by 2034. This is high-quality economic development with high wage jobs and innovative industries. FPL's continued infrastructure investments help make this economic transformation possible.

Energy Resources also continues to grow its regulated portfolio, electric and gas transmission. NextEra Energy Transmission is one of America's leading independent electric transmission companies with total regulated and secured capital of $8 billion. In fact, it's almost twice the rate base size of Gulf Power when we bought the company in 2019. Our scale and experience position us well as we execute on new transmission opportunities across America. NextEra Energy Transmission has secured roughly $5 billion in new projects since 2023. This includes PJM's recommendation in December that NextEra Energy Transmission and [ Exelon ] be selected to develop a new $1.7 billion high-voltage transmission line which is expected to enhance the flow of more than 7 gigawatts of power across the region. We expect PJM to make the decision on this project next month. We also continue to execute against our plan to grow our gas transmission business. Energy Resources has ownership interest in more than 1,000 miles of FERC-regulated pipelines a portfolio with organic expansion opportunities.

For example, Mountain Valley Pipeline has multiple ways to grow and is ideally positioned to bring gas from the [ Marcellus ] Shale even further into the Southeast where gas demand is already high. It's why we acquired a portion of [ Con Ed's ] interest in MVP earlier this month. And we'll continue to look for opportunities to optimize and expand our regulated gas pipeline portfolio as we provide energy infrastructure solutions to enable large loads across the country. Putting it all together, we expect our combined electric and gas transmission business at Energy Resources to grow to $20 billion of total regulated and invested capital by 2032, a 20% compounded annual growth rate off a 2025 base.

Energy Resources had another record year, originating new long-term contracted generation and storage projects. We added approximately 13.5 gigawatts to our backlog, which includes a record quarter of origination of 3.6 gigawatts since our last call. We have now originated approximately 35 gigawatts over the last 3 years. To put that into context, 35 gigawatts of power generation would rank as the fourth largest public utility in the U.S. What's also important is adding electrons to the grid, again, that's what America needs right now and that's what Energy Resources did, putting 7.2 gigawatts of projects into commercial operations since last year and Energy Resources record for a single year. Together, FPL and Energy Resources placed into service approximately 8.7 gigawatts of new generation and storage projects in 2025.

We continue to be well positioned to build more renewables, which remain the lowest cost and fastest solution to meet our customers' immediate needs. We've secured solar panels to meet our development expectations through 2029, we've begun construction on those projects, too. We've also secured 1.5x our project inventory against our forecast, providing us permitting protection. Few companies in our industry are positioned like us. We've taken the same approach for battery storage, securing a domestic battery supply through 2029, that's important because battery storage now represents almost 1/3 of our 30 gigawatt backlog with nearly 5 gigawatts originated over the past 12 months. We don't see this demand slowing.

Nearly every region in the country needs capacity and battery storage is the only new capacity resource available at scale. With a national footprint and large land position, we can work with customers across the country on stand-alone storage. But that's just the beginning. We can also take advantage of our existing footprint by co-locating storage where we already have connections to the grid, effectively doubling down or doubling capacity at a site, while it's the early innings we're looking at long duration opportunities in to.

In all, if you just look at stand-alone and co-located battery storage assets, we have a 95 gigawatt pipeline. If you assume we can ultimately expand each of these sites, we could potentially double our total backlog. It's a huge competitive advantage and positions us well in a market that's showing strong demand.

We also continue to advance our potential gas-fired generation build with a pipeline that's now topped 20 gigawatts. To get us started, we've secured gas turbine slots with [ GE Venova ] to support 4 gigawatts of gas-fired generation projects. We have a lot of experience building gas-fired generation as no one has built more over the last 20 years in NextEra Energy. Energy Resources remains focused on both optimizing and adding generating to its nuclear fleet. We continue to advance the recommissioning of our Duane Arnold nuclear plant in Iowa made possible by the 25-year power purchase agreement with Google we announced last year.

Our nuclear fleet outside Florida is also ripe for advanced nuclear development. That's why we are spending time closely evaluating the capabilities of various SMR OEMs. All told, we have 6 gigawatts of SMR colocation opportunities at our nuclear sites and are working to develop new greenfield sites. Of course, any nuclear new build would have to include the right commercial terms conditions with appropriate risk-sharing mechanisms that limit our ultimate exposure.

In addition to Duane Arnold, we have capacity available at our nuclear plants in New Hampshire and Wisconsin. Last year, Point Beach received a subsequent license renewal to operate for another 20 years in Wisconsin and then signed a PPA extension for 14% of the plant's capacity. That deal alone contributed $0.03 of annual adjusted earnings per share. Extrapolate that to the rest of the plan and you would get $0.21 of annual earnings per share, which is a meaningful increase to the annual earnings per share contribution from the current contract. We are also seeing similar interest at our Seabrook nuclear plant in New Hampshire. Between the 2 of them, we have 1.7 gigawatts of capacity we're offering to the market.

Our ability to build all these forms of energy infrastructure is why Energy Resources continues to be a partner of choice for hyperscalers. Remember, companies investing tens of billions of dollars in technology infrastructure, don't have time and can't afford to take a chance on a failed project. We come to the table with a national footprint decades of development experience, unmatched energy infrastructure capabilities and a strong balance sheet to support their needs. Our breadth and depth allow us to have a multiyear, multi-gigawatt, multi-technology discussion with hyperscalers. These data center hub opportunities, as we call them, represent a powerful channel to originate large generation projects with expansion opportunities where we can grow alongside our hyperscaler partner rather than building on a project-by-project basis.

As we discussed in December, our data center hub strategy is all part of our new [ 1535 ] origination channel and goal for energy resources to place in service 15 gigawatts of new generation for data center hubs by 2035. This dedicated work stream to power data center hubs is expected to help us achieve our existing development expectations through a mix of new renewables, battery storage and gas generation. And it gives us one potential path to achieve the 6 gigawatts, the midpoint of our development expectations of new gas-fired generation build through 2032. We currently have 20 potential hubs we are discussing with the market, and we expect that number to rise to 40% by year-end. While we won't convert every single hub, I'll be disappointed if we don't double our goal and deliver at least 30 gigawatts through this channel by 2035.

To get there, Energy Resources is laser-focused on positioning the company to where we see the large load market going. And that's to Bring Your Own Generation or BYOG. And it makes sense given affordability concerns across the U.S. hyperscalers can solve that problem by bringing and paying for their own power generation infrastructure. In fact, this issue took center stage earlier this month when the White House and a bipartisan group of Mid-Atlantic governors came forward with the framework of a potential solution to address the mounting affordability challenges in the PJM market.

We believe we are uniquely positioned to deliver for the BYOD market across America. That's because at our core, Energy Resources is a builder. We also have a strong balance sheet, and we have decades of experience and the team required to get the job done. Here's what also separates us. We can work with hyperscalers in the local service provider, whether it's an investor-owned utility, a municipal utility, a cooperative or retail electric provider in a competitive market. We have deep, long-standing relationships across the board. That matters.

On top of that, our renewables and storage portfolio provides us with the speed-to-market solution to get the initial phase of a data center off the ground and built. Think of it as a hook, so to speak, that's important for 2 reasons. First, it means the hyperscaler doesn't have to wait. Second, it allows us to then grow with our data center customers over time by providing additional capacity through other power generation solutions like new gas-fired generation or SMRs.

Importantly, we've done the work to make sure we are ready to build what our customers need when and where they need it. And we're not just building new infrastructure. We are also working to maximize the value of our existing assets. I talked about our recontracting opportunity at our nuclear sites. It's the same story across our renewables fleet, where we have up to 6 gigawatts of recontracting opportunities through 2032. The PPAs for these projects were signed more than a decade ago during much different market conditions. As the PPAs begin to expire over the next several years, we believe recontracting will command a higher price.

Energy Resources customer supply business also creates a key competitive advantage, providing significant market insight. And that portfolio and knowledge base is growing. On January 9, we successfully closed on our acquisition of Symmetry Energy Solutions, which is one of the leading suppliers of natural gas in the U.S. and an ideal addition to our footprint. Symmetry operates in 34 states and provides us access to additional physical assets, enabling us to deliver a broad range of solutions for our customers. We expect more gas-fired generation to be built across America, including by NextEra Energy. So having the ability to move molecules around the country is a critical skill set.

We are also spending a considerable amount of time accelerating our use of artificial intelligence. In fact, I expect our team to leverage AI better than anyone in America. As we announced at our investor conference last month, NextEra Energy and Google Cloud have entered into a landmark strategic technology partnership to redefine the future of the electric industry. Google Cloud is helping us drive and accelerate our own enterprise-wide AI transformation called Rewire, and Rewire will also help us identify and ultimately build AI-first products leveraging Google Cloud's platform.

The plan is for our first products to help enable dynamic AI-enhanced field operations and a more reliable and resilient grid. In fact, we expect to launch our first product at an industry event in early February as our partnership with Google is off and running. As I said at our investor conference last month, past performance doesn't guarantee future results, but I believe it's a strong indicator when the road ahead looks a lot like the road NextEra Energy has already traveled.

Across economic cycles, NextEra Energy's financial performance has remained consistent. The difference today is that we have more ways to grow and an opportunity like never before to build new energy infrastructure to meet growing power demand across our country. As we move forward, we will remain focused on what has long defined us, being America's leading utility company and leading energy infrastructure developer and builder of all forms of energy. I couldn't be more excited about our future.

With that, I'll turn it over to Mike.

Thanks, John. Let's begin with FPL's detailed results. For the full year 2025, FPL's earnings per share increased $0.21 versus 2024. The principal driver of FPL's 2025 full year performance was regulatory capital employed growth of approximately 8.1%. FPL [indiscernible] roughly $8.9 billion. FPL's reported return on equity for regulatory purposes is expected to be approximately 11.7% for the 12 months ending December 31, 2025.

During the fourth quarter, FPL utilized approximately $170 million of reserve amortization resulting in a remaining pretax balance of approximately $300 million at year-end 2025. Consistent with prior rate agreements, the Florida Public Service Commission approved a rate stabilization mechanism that allows us flexible amortization over the 4-year period. Under FPL's new rate agreement, this $300 million will be available for future amortization to the approved rate stabilization mechanism. When combined with the other components of the rate stabilization mechanism which are maintained on an after-tax basis, FPL will have an aggregate after-tax balance of approximately $1.5 billion available over the term of the agreement. This compares to the pretax balance of $1.45 billion that was approved in our prior 4-year settlement in 2021.

Key indicators show that the Florida economy remains strong and Florida's population continues to be one of the fastest growing in the country. Its annual gross domestic product is now roughly $1.8 trillion or the 15th largest economy in the world, if Florida were its own country. For the fourth quarter of 2025, FPL's retail sales increased 1.7% from the prior year on a weather-normalized basis, driven primarily by continued strong customer growth. In the fourth quarter of 2025, we added over 90,000 customers as compared to the prior year comparable quarter.

For the full year 2025, FPL's retail sales increased 1.7% from the prior year on a weather-normalized basis, also driven primarily by the strong customer growth in our service territory.

Now let's turn to Energy Resources, which reported full year adjusted earnings growth of approximately 13% year-over-year. For the full year, contributions from new investments increased by $0.47 per share, reflecting continued demand growth for our generation in storage portfolio. Contributions from our existing clean energy assets decreased $0.04 per share. Increased contributions from our nuclear fleet were more than offset by the absence of earnings due to the minority sale of certain pipeline assets in 2024 and other headwinds, including wind resource. Our customer supply and trading business increased results by $0.04 per share, driven by increased origination activity and higher margins. Other impacts decreased results by $0.30 per share year-over-year. This decline reflects higher financing costs of $0.17 per share, mostly related to borrowing costs to support our new investments as well as increased development activity to support business growth and higher state taxes.

For the fourth year in a row, Energy Resources again delivered our best year ever for origination, adding nearly 13.5 gigawatts of new generation and battery storage projects to our backlog. This includes approximately 3.6 gigawatts since our last call, 1.7 gigawatts or almost 50% of our fourth quarter additions or solar projects. Our 2025 origination performance reflects growing demand, including from hyperscalers that are looking for speed to market power solutions. Our backlog now stands at approximately 30 gigawatts after taking into account roughly 3.6 gigawatts of new projects placed into service since our third quarter call.

In 2025, we placed over 2 gigawatts of battery storage into service, increasing our annual battery storage build from 2024 by roughly 220%. We believe our 30 gigawatt backlog provides terrific visibility into Energy Resources' ability to deliver attractive growth in the years ahead.

Turning now to the consolidated results for NextEra Energy. For the full year, adjusted earnings per share from our Corporate and Other segment decreased by $0.12 per share year-over-year, primarily driven by higher interest costs. NextEra Energy delivered 3- and 5-year compound annual growth rates in operating cash flow of over 14% and over 9%, respectively.

Our 2026 adjusted earnings per share expectation ranges of $3.92 to $4.02 per share remain unchanged. And as we said in December, we are targeting the high end of that range. NextEra Energy has met or exceeded its annual financial expectations since 2010 which is a record we are proud of. This provides us confidence in our 10 years of financial visibility that we shared with you at last month's investor conference. We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and are targeting the same from 2032 through 2035. And all of the 2025 base of $3.71 of adjusted earnings per share.

From 2025 to 2032, we expect that our average growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range. And we also continue to expect to grow our dividends per share at roughly 10% per year through 2026 over 2024 base and 6% per year from year-end 2026 through 2028. As always, our expectations assume our caveats.

That concludes our prepared remarks. And with that, we will open the line for questions.

[Operator Instructions] The first question comes from Steve Fleishman with Wolfe Research.

So subsequent to your Investor Day, I think Google announced the acquisition of Intersect, the renewables developer. So I'm curious kind of how does that fit in with how you're thinking about your partnership with Google. And if we do see other hyperscalers acquired developers, kind of how do you think that -- about that as a competitive risk? Or how are you just thinking about that if that becomes a thematic?

Yes, Steve, it's John. Thank you for the question. And first of all, the short answer is, it has no impact on our partnership. Google called us in advance of the announcement and set as much to us. And here's why. I mean, we have a lot of respect for Intersect, but they're a smaller developer. They're really concentrated in 2 states, California and ERCOT. And when you buy into a smaller developer, you're buying into their existing position. And you've really got to think through what that existing position comes with. Where are they on safe harbor, right? Those deadlines have already passed for tax credits.

So you're stuck with whatever safe harbor position that they have a smaller developers always are going to have a small safe harbor position just given the obvious limitations, [ FIAC ] right, is another safe harbor where the deadline has passed as well. We are an outstanding position in both of those areas and have a ton of flexibility to add a lot of generation.

You're also kind of stuck with their inventory. Where are the permitted sites? We have permitted sites across the United States. We have 1.5x coverage on those sites. You're also kind of stuck with their supply chain position and their relationships. Have they remember there's long lead time equipment that has to be secured. So if you weren't planning on an acquisition, you probably didn't have a lot of inventory to start with to go engage in a large build. And so I think that's certainly a limiting factor. We've been very vocal. I know we've been out buying equipment for -- across the energy value chain, secured our solar and storage inventory through 2029. I don't think a lot many small developers can say that.

And then experience across technologies, you got to really find somebody that knows all 50 states that can do business in 50 states, understands the ISOs in and out, working with FERC, working with Washington and experience across wind and solar and storage and transmission, whether it's electric or gas. All of those things are nuclear and gas-fired generation. It's very rare and unusual and unique the position that NextEra is in.

And so I think when you put all those factors together, addressing your other question, the competitive risk, I just don't see it. We are in a period of significant power demand, needing to put electrons on the grid. We have great sites. We have 20 data center hubs on the -- that we're developing currently trying to expand that to 40. Small developers just don't have that. And so we're in a great spot, and I couldn't be less concerned.

Understood. One other question, just on -- we've seen a little more noise just on kind of data center citing opposition or concerns about causing rates to go up and including some, I think, in Florida. Just could you maybe just talk to how you're feeling about that overall, but maybe specific in your Florida plant?

Sure. I'll turn that over to Scott Bores to address the Florida question, then I'll come back and talk about the [ NAD ] what we're seeing on the national level.

Steve, it's Scott. In Florida, right now, we are in legislative session. There are 2 pieces of legislation out there, 1 by the house, 1 by the Senate. The Senate is the one that's advanced through already through a committee. I will say, is the more constructive legislation. What that is really pushing for is, I'll say, a lot of what our tariff already does, providing protection to the general body of customers. And so we are going to continue to support that legislation as it advances.

And I think ultimately, that is going to allow us to continue to move our tariff forward and hopefully continue to get some customers signed up and move that forward. But nothing we're concerned about in Florida.

Yes. When I look at things nationally, that's what's so beneficial about what NextEra Energy brings to the table, right? One, we have a national footprint. Two, we have the ability to really help our customers design affordable and reliable solutions, given what we can bring to the table across the energy value chain, we really can help them actually come up with a solution that really threads the needle around affordability, but also bringing the necessary electrons that are required to create that job creation, create that property tax base.

And like I said in my prepared remarks, I mean, we really see this heading more towards Bring Your Own Generation. And I think that's how we've set up our entire pipeline in our development effort. And we are one of the very few companies that are out there building and if investors are looking for a way to get exposure to a builder, I think we're the perfect answer for that. And I think that's where Washington is heading. I think that's where the various ISOs are heading because it's going to be really important that the hyperscaler shoulder the cost associated with the incremental generation that has to be built to power the data center. And I think we're the perfect partner to do that given the relationships that we have given our ability to do things on a -- at a much lower cost than our competition. And so feel good about where things stand.

Next question from Julien Dumoulin-Smith with Jefferies.

Thank you very much for the time. I appreciate it. Maybe pick it up where we left [indiscernible], I mean, look, I'd love to hear a little bit about how you think and what's the expectations on the cadence of announcements to hit these targets, whether the 15 or 30 gigawatts. And specifically, what the success in 2026 look like in order to ensure you're tracking against those 15-plus what have you?

And then within that, John, how do you think about the kind of resource mix? Is 15? What's the composition of gas versus renewables, et cetera, et cetera, if you can? And then maybe a subpart to that tie back to what Steve said, how would you set milestones or expectations in FPL specifically? I know you guys talked about the 2028s [indiscernible] data centers. Is that coming sooner or later relative to the new efforts on the hubs?

Yes. Let me go ahead and take those in order, Julien. So first of all, let's just talk about the development expectations that we laid out at the investor conference. As I've said before, they're not heroic, right? I mean they're basically as long as we can do through 2032, what we've done over the last 10 or 20 years, we're going to be a great shape, right. I mean we're counting on market share that is very consistent with what we've been able to achieve over the last 1 to 2 decades. In renewables, it's about 15% to 20% and storage is about 20% to 30%. And in gas, through 2032, it's only 5% to 10% market share. So we feel very good, first of all, with the base forecast.

Second, when you mentioned the 15 by 35, one of the things that I want to make really clear is that [ 15 by 35 ] is just an origination channel, right? That's a program that we have on the origination side to hit those very reasonable, very realistic development expectation. It's one of many ways to get there. And when you unpack that 15 to 35 gigawatts, the composition of it is roughly 6 gigawatts of gas-fired generation by 2035. And it's going COD by 2035 to hit that. And it's a mix of renewables in storage for the balance. So we feel good about where we stand. And we hope to be able to do a little bit better than that.

Actually, let me make one clarification. That's 6 gigawatts of gas by 2032. I said 2035 by 2032. And second, let me talk about the milestones for Florida real quick, and then we'll turn things over to Armando to add some points on Florida.

For FPL, we feel really good about where things stand. Right now, we have 20 gigawatts of interest in Florida. And we have advanced discussions with customers on roughly 9 gigawatts for all the reasons that I had in my prepared remarks, Florida is a terrific data center opportunity for the right partner. I think folks see that. And they realize the benefits and the growth that we're going to be seeing in Florida, the fiber latency issues that need to be close to where businesses developing in South Florida, all the development that we're seeing across the state.

But second, what's really attractive and what's really appealing, I think, for hyperscalers is look, we have a really -- we have a low bill. We know how to get things done. We have a long track record of being able to work with the state at all levels. And but most importantly, from a customer standpoint, we have a large load tariff that make sure that the hyperscaler is paying the cost of the additional build, not the customers in Florida.

Armando, do you have anything you'd like to add?

Yes. Just real quick, Julien. So John had in the prepared remarks, a Senate had said 2025 was about laying the groundwork in 2026 is about execution. That applies to both companies and certainly to FPL.

To answer your question as specific as I can, my expectations is that in 2026, that there will be announcements regarding large load in our service territory. That's certainly what we are shooting for and working for. And that's what 2026 for us is all about.

And Julien, just on the question around what does 2026 look like for us for success. I'd just go back to 13 -- comment about 13 is our expectations. This is our kind of road map that we're going to track against from the standpoint of where do we think we'll be developing. And so this is -- the channel feeds into this, as John mentioned. So we're looking at the expectation of what we're laying out here on Page 13 and continue to track against those.

And just as a quick follow-up in terms of disclosures maybe and not to pin down too much on '26. But how do you think about, say, chunkier announcements, say, with Google here and making specific announcements around that versus the typical quarterly announcement cadence of singles and doubles to kind of chip away against that 15-plus gigawatt target on the near side. Should we expect bigger [indiscernible] here? Or is this going to be more of a regular quarterly cadence of chipping away?

Yes. I mean I'll say 2 things about that, Julien. I mean, first of all, we are -- we have a lot going on as a company, a lot of opportunities, a lot of discussions that we're having with customers that are in various stages. You should not expect us to wait for quarterly calls to announce those things. So as they happen, we will come forward with them on those chunkier deals as you call them.

The next question comes from Shar Pourreza with Wells Fargo.

John, just in terms of the nuclear recontracting, maybe just an update in Wisconsin since the existing counterparties need to make a source decision kind of soon. I guess where do we stand on marketing the open capacity? And just given the amount of acreage that's around the site, could we see sort of a behind-the-meter deal structure there? Or should we continue to assume a virtual deal just given the [ BOG ] initiatives, et cetera?

Yes. I mean, first of all, on Wisconsin endpoint, I'd say this about all of our nuclear plants. We saw how much interest there was around Duane Arnold. There's a lot of interest around Point Beach. Wisconsin is in a great spot for data center build-out. It's no secret how much interest there's been there, [ Foxconn and Clover Leaf ] and some of the other expansion opportunities around the state, very conducive to data center buildout. And so with that becomes a lot of interest around power generation solutions. And given the relationships that we have with utilities in the Midwest region and with cooperatives, in the area.

You saw the whip deal that we announced with 14% of the generation already having been secured, as one example of that. We feel very good about how that asset is positioned. We're going to be careful and methodical about our approach and make sure that we are doing the right thing by our shareholders in terms of what we ultimately do with that asset.

Got it. Okay. Appreciate that. And then just on PJM, specifically, a lot of different data points there. But would you participate in the backstop auction there, just either on the renewable or gas side? Is it sort of becoming a little bit more constructive as a solution?

Yes. I think Shar, the way I would answer that is still a lot to play out, right? And you got to have regulatory certainty before you allocate capital against any investment. And so we would have to have real regulatory certainty around outcomes here in order to drive new investment. And I think that is exactly what the administration is trying to do. And I think that's what the 13 governors that signed on to the recent framework agreement that -- or framework proposal that was announced. But PJM has more work to do in terms of coming up with what exactly they plan for the future of that market.

But certainly, under the right construct, it could be attractive for new generation, but you have to have a long-term certainty around what capacity prices are going to be. They have to be at the right level in order to support new investment in that area. And as I look at it with how we're positioned to ramp BYOG, we have so many opportunities around the United States right now. that we are pursuing. But certainly, we have a close keen eye on PJM as well and are watching to see how things play out.

The next question comes from Nicholas Campanella with Barclays.

I just wanted to come back in the FPL large load discussion. Just I wanted to just understand, you have the tariff framework in place so what is the kind of gating items more on the customer side? Like what are your customers telling you they're still trying to get done before being able to kind of move forward with an agreement? Is it like water, land permitting reasoning? I guess just what needs to kind of fall into place to see some announcements here in '26? Appreciate it.

Thanks. So look, customers want to make sure that when they're plopping down the $10 billion or so for all the capital that's needed for one of these, they're in a place that they feel comfortable long term. And while we have a tariff, there is current legislation being cost up in Tallahassee that may make a difference in terms of water usage may make a difference in terms of items that the hyperscalers are large load company entities can get from local municipalities or from the state, and they're waiting to see how that shakes itself out.

Scott answered a question before on what's going on in Tallahassee, we feel quite comfortable that we are going -- we are all going to get to a very constructive outcome in terms of what test data centers have to look at in order to do business in Florida. But my expectation is, as I answered the question before, is that in 2026, based on what we are seeing, the interest that we are seeing on the ground here in Florida, and particularly in the FPL service territory, that there will be some announcements in 2026.

So again, I expect there to be a constructive outcome to the legislation that's being discussed up in Tallahassee. And I also think it's very likely that we will have announcements in 2026 regarding large load in our service territory.

Right [indiscernible] for yourself. And then maybe just a quick update on supply chain. I know you have the 4 to 8 gigawatt gas target. You talked about having secured supply for 4 gigs. Just when would you kind of secure the additional 4? And where do you see pricing right now through 2032 and availability?

Yes, Nicholas. So first of all, we have the 4-gig position on gas, which we would put against the opportunity set, mainly those data center hub opportunities that we see and are continuing to advance I've talked a lot about on this call.

From a when we secure more as our discussions continue to advance, and we continue to have very good discussions kind of across the board on those 20 gigawatts of data center hubs that we hope to grow to 40 by the end of this year. And we always make prudent decisions around how we manage our supply chain position. I don't worry too much about it in terms of gas turbine availability though. I mean given the relationship, the partnership that we have with [ GE Vernova ], getting our hands on gas turbines at an economic and competitive prices, not the top of my list of things to be concerned about.

And so I think that probably also addresses the pricing point. I can't give you specific pricing terms and conditions that we would get or that we would see. But they're -- I would say they're just remain consistent with what we told you back in December.

The next question comes from Jeremy Tonet with JPMorgan.

Just want to start off with wind additions, if I could. It looked like a little uptick there. Just wondering if you could frame a bit more what you're seeing. Are there some green shoots that could be developing there?

Sure. We had some wind additions that you saw in '28 and '29, if you're looking at the backlog page. And listen, we continue to see balance across our business from the standpoint of opportunities for people are looking for electrons. And so from a green shoots perspective, I do think we'll continue to see more solar, more storage and then ultimately, gas relative to wind. I think that's a trend that continues to move forward. But we still see interest across the various products. We've got a national footprint and a national customer base and the need for electronics kind of varies.

So we're glad to add them, but I think the trend is still going to be more towards solar and batteries as we think about those various products.

Got it. Understood. And if I could just pivot towards SMRs. I think we started to see hyperscalers and other, I guess, end users start to adopt, I guess, one technology to run with. And so granted it's ways off at this point. But just wondering your thoughts on this and whether you might look to partner with one technology here to go for as everyone tries to go from [ FOAX, NOAC ]. And just wondering rough timing around design approval and then construction time lines if you were to go in that direction.

Yes, good question. And we've done a lot of work around the OEMs. I think we said back in December, we kind of took the 96% or so folks that call the SMR OEMs and called that down to about 12 and then deep dives on technology, commercial assessment around the balance. And we have a very good feel as to who may make sense to advance discussions with there. But whether or not we partner with one, partnering is not something that we've historically done. We like to create competition amongst our suppliers unless one particular supplier has a concentration in a specific area or has a unique technology offering, and we can enter into attractive long-term pricing arrangement that creates win-wins. But we're always careful about locking ourselves in with just one -- with one counterparty.

But obviously, for us to advance on SMR, which is something we are -- we have an SMR team, first of all, I should say, we are taking this very seriously. We have a development -- a part of our development organization that is focused 100% on SMRs. So we're not only looking at development around our existing nuclear sites, but we're also looking at greenfield opportunities as well and how an SMR could fit into a long-term solution around a data center hub as we look to the future.

But again, any movement from us on SMRs and go back to what I said in the prepared remarks, has to be under the right commercial terms and conditions where there's appropriate risk sharing capping on financial exposure because we're going to be very prudent and careful how we approach that market. But excited about the potential. You also asked about some of these announcements where you see hyperscalers teaming up with one specific OEM. Not sure how much I would read into that. I think really folks are just trying to learn more and see who has viable solutions out there. We'll see which ones actually advance over time, but that's what we are keenly focused on.

And in any discussion, it's not around SMRs, it's not only with the OEM, it's with the hyperscaler as well. It's with the government, right? I mean it's going to take 4 parties coming together to come up with the right structure that makes sense, but it's something we're very focused on.

Yes. And then the only thing I'd add, which I know we said before is while we are spending a lot of time, it's not in our -- that would be upside to our plan. If we were able to put something together, we are spending all that time that John talked about it, and it would be upside to our plan.

But our base plan doesn't have SMRs in it. And so -- but we do think it could be good upside, and we're spending real time on it because I think there's an opportunity that we're excited about.

Got it. Makes sense. One quick last one, if I could. It does seem like the federal government is putting in very significant billions of dollars to support SMR and nuclear development here. Just curious, I think, if there's anything missing or what more could be put in there to get the market going in this direction?

Yes. I think -- first of all, I think the administration is doing all the right things. Like you said, I mean, they are really trying to enable American Energy dominance across board and excited about many of the programs that they're coming forward with around nuclear in particular, around SMRs and advanced nuclear. I think that just those programs that they've already established create that the opportunity for that 4-way discussion that I just mentioned in a very constructive way that I think could hopefully get one of these projects off and running under the appropriate commercial structure.

But more work to do there, right? I mean I think we've made some very good progress in that area. And I think the government is doing the right things. And so up to developers and OEMs and customers to come together to work with the government on the right framework.

The next question comes from Carly Davenport with Goldman Sachs.

You had mentioned earlier the PJM recommendation for the transmission project with [ Exelon ]. I guess there's been some degree of pushback in Pennsylvania on that project given the cost and some of the shifts on the PJM load forecast. Can you just talk a little bit about that and your confidence in that project moving forward?

Sure. Listen, I think our confidence continues to be high. PJM management to recommend, and we expect them to continue to recommend for the Board and the ultimate Board meeting. We're listening to everyone, all the stakeholders, the OCA as they continue to think about this project, but we think this is important for reliability. It's the lowest-cost answer in the region to achieve that reliability and it continues to be supported by PJM. So we're -- we feel good and continue to feel good, and we'll continue to listen to all the stakeholders throughout the process.

Great. And then just on the adjusted EBITDA outlook for '26 at near, if we look at the year-over-year guidance both gas pipes and gas infrastructure that looks down year-over-year. So just curious, given the asset purchases in that area this year, kind of what drives that decline? And if you see any potential upside, obviously, recognizing that's a smaller piece of the pie today.

Yes. I think as we've mentioned on the natural gas pipelines, it's going to be an area that we continue to grow over the course of the next decade. If you look at what occurred between 2025 and what we look at for 2026 is simply as you looked at our proportionate ownership share in [ EXPLORER ], they had a pipeline of mean that they divested at [ EXPLORER ], and that brought down that EBITDA. But as we look on a go-forward basis, pipelines will be critical piece of our growth trajectory for 2026 and beyond.

And this as you look at gas infrastructure, I think the reduction in EBITDA is relatively small, $50-ish million or so. So as you look at that piece, we'll continue to see that have a place in our overall structure, but I wouldn't necessarily expect that to be a key piece of our growth trajectory.

At this time, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

[Presentation]

Please welcome to the stage, Director of Investor Relations, Mark Eidelman.

Before we begin, I'd like to remind you that today's presentations will include forward-looking statements and references to certain non-GAAP financial measures. Please refer to the cautionary statements and risk factors as well as the non-GAAP reconciliations included in the appendix of today's materials and in our recent SEC filings.

After John's opening remarks, Scott Bores will lead our discussion of FPL. We'll then take a short 15-minute break. Following the break, you will hear from Brian Bolster of Energy Resources, and then Mike Dunne will provide an overview of our financial outlook. Our full executive team will then be available to answer your questions. Now let's begin.

[Presentation]

Please welcome to the stage, Chairman and CEO of NextEra Energy, John Ketchum.

All right. Thank you, Mark and good morning, everyone. We are thrilled to be in New York during an unprecedented time in the energy sector. There is so much to share with you today.

Let me start with why NextEra Energy is positioned to win in this environment. We're the world's largest power company. We're America's only all forms of energy infrastructure company with a national footprint. Nobody has our scale, nobody has our scope and nobody has our track record of execution and the balance sheet to build all forms of energy at scale. You name it, we develop it, build it and operate it better than anyone in America, including gas generation, nuclear, electric transmission, gas pipelines, and, of course, renewables and storage. I don't say this to boast. I say it because this country is at an inflection point. America needs affordable and reliable power now and require all forms of power generation to get us there. The stakes couldn't be higher.

Most of you know NextEra Energy well. We are anchored by two world-class businesses, the nation's largest rate-regulated utility and the nation's largest developer and builder of energy infrastructure. We are built to win in any environment, focused on building what our customers need, when and where they need it. We're a big developer. We're a big builder, and we do it all, which is exactly what America needs to be dominant in energy and meet power demand today.

We've also done the work, securing land and transmission interconnection positions while mitigating permitting risks, leveraging the scale and strength of our robust global supply chain to navigate trade policy and secure equipment at what we believe are the best prices.

Our customer supply business gives us market knowledge and unmatched expertise in power and gas markets. We use next-generation AI tools to cut through complexity and provide our customers with tailor-made solutions. In many cases, we know their system better than they do. I'm not just saying that. Google put their stamp on it. As you'll see today, we're teaming up with them to launch an AI partnership across our sector, which I believe will be nothing short of transformational for our company and the power sector. Bottom line, when you've done what we've done for decades, you accumulate something that can't be acquired. It takes scale, skills and a wide scope of capabilities across the energy value chain to meet the complex needs and create ready-now power solutions for our customers.

Simply put, there's no company better positioned to capitalize on this golden age of power demand, and that's what I'm so excited to talk to you about today. When I'm done, you should be left with four key takeaways. Takeaway number one, the large load marketplace is quickly evolving. Let me walk you through it.

Recontracting with existing merchant assets is getting more difficult due to affordability concerns. We are seeing this play out in PJM right now. It's a similar story for utilities, that's because much of their excess generation is now spoken for and building new generation can prompt affordability concerns absent a well-structured large load tariff. That's why we think more of the opportunity will be where the market is quickly moving to and that's bring your own generation or BYOG, as we like to call it. And it makes sense given affordability concerns. Hyperscalers can solve that problem by bringing and paying for their own power generation and infrastructure.

That could be through a well-structured large load tariff, a power purchase agreement or a behind-the-meter solution. It can also result in new generation coming online even quicker with an experienced partner. We are positioning our company around BYOG, and we are uniquely positioned to win here. Energy Resources is doing this throughout the U.S., working across markets with both hyperscalers and utilities, municipalities and cooperatives to build new generation in their service territories. And we are working on behind-the-meter solutions that come with front-of-the-meter optionality over time.

Our renewables and storage portfolio provides us with a speed-to-market solution to get the initial phase of a data center off the ground and built. We can then follow that up with new gas-fired generation. A good example of BYOG is Duane Arnold, where Google entered into a power purchase agreement with us to recommission the plant in CIPCO service territory. Google is paying for the plant, so Iowa customers don't have to.

And that also brings significant jobs and economic growth to that region. Basin, which I'll talk a little bit about later this morning, Brian will as well, is another example where a hyperscaler is expected to support the commissioning of a new gas plant. NextEra Energy is the ideal partner for both hyperscalers and utilities, municipalities and co-ops for BYOG. And given our deep long-standing relationships with all three, we are in a terrific position to deliver for them. We bring the skills, supply chain, construction expertise, a balance sheet that no one else in this industry can match.

Takeaway number two, gas-fired generation will play a large role in BYOG and addressing the demands of large load customers. And we are making excellent progress in our development efforts here. Our gas generation pipeline has now eclipsed 20 gigawatts. We have a new origination channel for large loads. We call it data center hubs, which we expect to largely support our gas-fired build forecast. I'll talk more about that in a few minutes. We recently secured gas turbine slots with GE Vernova totaling 4 gigawatts as we advance our gas build. We have several announcements today that highlight our progress in gas generation.

If ultimately successful, these announcements alone could satisfy our gas generation build assumptions of 4 to 8 gigawatts through 2032 and contribute to our target through 2035. We have a lot of experience building gas-fired generation. In fact, no one has built more gas-fired generation in this country over the last 20 years than NextEra Energy. And nobody has a development platform quite like ours, a platform that transcends all technologies.

Takeaway number three, we are America's quintessential, all forms of energy company. There's simply no one else positioned better to do what we do, in every part of the country, with every technology, in every part of the energy value chain. With our unmatched development platform and operating expertise, not to mention the balance sheet required to back it up. We have the development platform, the supply chain and the skills, scale and scope to meet the needs of just about any customer.

Takeaway number four, we have a very strong financial outlook backed by our two world-class businesses. We normally only provide financial expectations 4 years out. Not this time. We have 10 years of financial visibility. And we expect to grow adjusted EPS at 8% plus through 2032 and are targeting the same from 2033 through 2035, all off a 2025 base. That's because we have more than a dozen ways to grow. Almost all of our cash flows come from regulated and long-term contracted investments at premium returns. This provides diversification, visibility and what we believe is one of the best risk-adjusted investor value propositions, not only this decade, but the next.

Let me say, we didn't arrive at this conclusion lightly. We have spent significant time on our 10-year forecast. We feel very good about what we're going to share with you today. In fact, we will very clearly and concisely lay out our assumptions. And as you will see, they are very consistent with the performance we've had over the last 10 years.

At the conclusion of our presentation, Mike will walk you through the building blocks that underpin our financial assumptions through 2032, which have been painstakingly built up, bottoms up after a detailed review reflecting our experience across markets with each technology. Our strategy is simple and straightforward. It fits on one page, and we have more than 12 ways to grow. And the entirety of America is our playing field. I'll be making some new announcements today, proof points, so to speak, to make all of this very tangible as we're already making terrific progress against our plan. There's no company quite like NextEra Energy. There's no better team in the industry, and there's never been an opportunity quite like this, and we are ready to seize it. And I couldn't be more excited to tell our story.

We are in a golden age of power demand. And NextEra Energy is leading the way. We're doing it as builders. Not a day goes by when we're not building energy infrastructure somewhere in this country and it's going to take a builder to get this done. I'm not telling you anything you don't already know. America needs more electrons, new electrons can't get on the grid fast enough. Demand for new electricity in this country over the next two decades is forecasted to be 6x higher than the previous two decades. Hyperscalers will tell you, this is their biggest issue in building new data centers. Without more electricity America can't win the global AI race.

All that said, here's the reality. Data centers and AI grab all the headlines, but hyperscalers are competing for new electrons. That's because demand for electricity is coming from across the U.S. economy. Demand is coming from the residential sector and commercial and industrial customers as well as we redomesticate manufacturing back into the United States. About 1/5 of demand is coming from the transportation sector. Importantly, this isn't power demand that's coming someday, power demand is here today, but we don't see it slowing down anytime soon.

Simply put, America needs all forms of energy from renewables and storage to gas and advanced nuclear. In fact, ICF projects more than 500 gigawatts of nameplate capacity is needed on the grid by 2032. That's a 60% increase over the next 7 years compared to the prior 7 and we believe there's no margin for error. Many regions of the country are projected to be dealing with capacity deficits as we approach the back half of the decade, even when you factor in plans for more generation.

Here's what matters. If all these projections are right or even somewhat right, there is no time to waste. The moment to build new power infrastructure in this country is here right now. America needs all forms of energy. It's not an either or proposition. Here's how we approach it. We build what our customers want. We're clear-eyed with them about what technology is available right now and what needs more time. We also show them what technology is available and at what price point it comes at. We're finding customers are combining all forms of energy. Renewables and storage to meet immediate demands today and next decade as these technologies will still be competitive.

And then other technologies like gas-fired generation and potentially nuclear down the road when they're ready. In fact, this is at the core of how we serve hyperscalers building side-by-side with them as they grow. Here's what's important. We believe that competing for new data centers is all about building new electrons, not trading around existing assets. We believe this is the future of our business, and we're the only company that could do this on a national scale right now.

This is complex for customers and may be confusing. That's where our AI tools come in. And here's exactly what we show our customers.

[Presentation]

I'm going to talk to you much more about how we're using technology across the country. Many of you have seen our AI tools in action during our development days in Florida. Simply put, we cut through all the market complexity so customers don't have to. This is not some data set that you can just buy off the shelf. It's massive. We're collecting more than 500 billion pieces of data a day, accumulated over decades of developing, building and operating projects. And we have used this data to design a number of tools beyond 360, including TerraGrid and Routify.

Truly to say this is remarkable, would be an understatement. It has completely changed how we originate and absolutely blows customers away. When you put it all together, it's easy to see why NextEra Energy is the industry leader. NextEra Energy is America's leading energy infrastructure company. No one invests more in American energy infrastructure than we do. We develop and we build new power generation, gas pipelines and electric transmission. We are powered by two world-class businesses.

Florida Power & Light Company and NextEra Energy Resources. FPL is the nation's largest rate-regulated utility. It offers what I believe is the best value proposition of any utility in America. NextEra Energy Resources is America's largest energy infrastructure developer. We build regulated linear infrastructure through electric and gas transmission. And we build generation and deliver that power through long-term contracts.

The opportunity set for energy resources is enormous. Our ability to be both nimble and fast while solving complex problems with affordable positions is what positions us to win.

For us, our opportunities are not limited to a single service territory. That's because we serve America. We do business in 49 states, all but Alaska. We work in competitive states. We work with municipal utilities and cooperatives, which as you can see, take up a gigantic geographical footprint from coast to coast. We have really strong relationships with munis and co-ops, many of whom have not had to build for growth in a very long time and value our skills, our capabilities and our balance sheet, making us the perfect partner.

We also work with investor-owned utilities across the country with whom we have very deep relationships. It's why when you look at where we have infrastructure, you'll see it's practically everywhere. No matter what the market, no matter the customer, we have what it takes to build energy infrastructure, get electrons on the grid and move them around the country to serve new load.

Importantly, FPL and Energy Resources leverage a shared platform, creating an unmatched competitive advantage. Just look at how extensive this platform is. Our operating scale and supply chain are massive. We have global banking relationships. We have one of the largest and strongest balance sheets in the sector. We leverage technology and data unlike anyone else in our space, our culture of never settling for the status quo is contagious. FPL's century of experience running a rate-regulated utility helps energy resources offer solutions to customers across America, including investor-owned utilities, municipalities, co-ops, C&I and hyperscalers. Energy Resources drives FPL to use analytics and AI to lower cost and FPL customers get the benefit that come with a combined scale of the two businesses.

Bottom line, you'd be hard-pressed to find anyone in our space who can replicate that platform. That's because we've been building it, refining it, and optimizing it for decades. And we've done it by developing, building and operating all forms of energy. For years, NextEra Energy has been the world's largest renewable and storage company. We also own and operate the largest rate-regulated utility in the country. We own and operate the nation's largest gas-fired power plant fleet. We have one of the largest nuclear fleets in America that's about to get even bigger with the Duane Arnold restart. We own one of America's largest transmission and distribution businesses. We co-developed the last multistate gas pipeline. And we're a leader in artificial intelligence and technology, making ourselves even better.

Some companies trade around their assets, not us. We develop, we build. And as you can see, we build a lot. In fact, from just 2020 to 2024, we built more than 33 gigawatts of new generation. That's more than the next 20 largest utilities combined. Nobody has our scale, nobody has our scope and nobody has our skills, and it translates into exceptional value for our customers and for our shareholders.

On the right-hand side of the slide, just look at how much we bought over the last 4 years. As you can imagine, this means incredible buying power. It's why our supply chain has long been one of our core competitive advantages. Simply put, our buying power reduces business risk. Building everything I just showed you is only possible with a robust supply chain and a team that's always thinking several steps ahead. That's why we've secured a domestic battery supply to meet our expectations through 2029. We've secured solar panels to meet our expectations through 2029 as well. And we're making really good progress in solar and batteries through 2030. The majority of wind components are sourced here in America.

We secured 4 gigawatts of gas turbines with more to come as we look to advance our gas-fired generation efforts. We purchased switchgears, breakers through 2029 and transformers through 2030. So we're not late bringing projects online, on time or on budget. And we're advancing bridge power solutions, including aeroderivatives with GE Vernova. We safe harbor for tax credits, and we've safe harbored for FEOC compliance. Let me tell you, no one else can do this quite like us. I don't believe anyone else has done this like us. On top of this, we've secured 1.5x of our project inventory against our forecast, which provides us with permitting protection.

We also have a track record of delivering on our expectations. About 18 months ago, we had our 2024 investor conference. You can see the results. We've grown adjusted EPS at 8% plus and maintain our credit rating and our strong balance sheet. We continue to offer the best utility value proposition in the country at FPL with a rate case outcome that's constructive for customers and for shareholders provided another 4 years of certainty.

Energy Resources is breaking origination records year after year building and is also building a large transmission utility from within and serving hyperscalers. In fact, we've secured $5.1 billion in new transmission rate base with even more on tap. To be clear, I'm pleased with our performance but there's so much more for us to look forward to.

Nothing differentiates us more than our team. Our people are our greatest asset. Our people and our culture drive these results. You can see the numerous awards, including Fortune's Most Admired almost every year for the last two decades. I'm grateful our team is being recognized, but we're not here for individual accolades. We're in it to serve America and to make a meaningful difference in people's lives. And we do it by staying true to what we've always done and what we'll always do, making decisions with data and analytics, running the business with financial discipline and with operational excellence. Moreover, we have a culture of innovation with a team that never settles and is always working to be the best.

Our current generation portfolio is unmatched. It's massive. But what's even more impressive is that we operate it better than anyone. This is because of our people. It doesn't matter the technology. Our team performs better across the board. Just look at the numbers. We aren't just better than top decile. We are in a category all by ourselves. In fact, we're using remote control technology to help our fleet, which no one else is doing. The platform we've built gives us an enormous operating scale advantage. And scale matters more than ever in this industry. It allows us to get operating data in real time.

Here's why this matters. We take every piece of data from our operating assets. And we use it to not only enhance how we operate, but also how we develop future projects. No one else has this type of data to guide future development in operations.

NextEra Energy's credit rating has remained consistent, no matter the challenge. And there have been many from a great recession, countless hurricanes and a global pandemic, just to name a few. We don't take this for granted. It's not the same across the industry. Many of our peers have not maintained the same credit quality. This matters because the industry requires real investment to drive growth. Unlike any we've ever seen before, and the only way to do that is with a strong balance sheet and hyperscalers are taking notice. Here's what's -- what our experience tells us. Hyperscalers aren't about to spend capital at a 4:1 ratio to our investment unless they have the confidence a developer can deliver. That starts and ends with a strong balance sheet.

When you put it all together, you can see why hyperscalers want to work with us. We have 28 gigawatts of origination and projects we are otherwise advancing with the top hyperscalers. Again, companies investing tens of billions of dollars in technology and infrastructure, they don't have the time to take a chance on a failed project. They simply can't afford to. They need a trusted partner, one with a national footprint, experience, capabilities and a balance sheet. We check every single box. Through it all, we've consistently delivered strong cash and adjusted earnings per share growth.

Again, our track record shows that we do what we say. We understand what it takes to get the job done. It's all about execution. And we believe there has never been a more important time to invest and execute in the energy sector than right now. Think of it like this. Our competitors are just now trying to do what we've been doing for well over 2 decades to drive shareholder value. When you buy NextEra, you're buying a team of strategy and an opportunity set, a company with an unmatched track record in our sector that plans for what's next. So how do we do it?

Let's talk about how we're growing America's premier energy infrastructure company. We have three core growth areas. First, we have Florida Power & Light Company, America's largest electric utility. Second, we have an electric and gas transmission business within Energy Resources. Importantly, both of those businesses are rate regulated. Third, Energy Resources has long-term contracted power generation and storage business. While these are not rate regulated in the traditional sense, they largely mimic it through long-term power purchase agreements. Tying it all together is a leading customer supply business with a hand in every part of the energy value chain, providing unmatched insights and market knowledge.

When you put it all together, it's clear. We are built to win in any environment. We have a national footprint. We have more than 12 ways to grow. We have scale, we have the skills, we have the scope, and we have the track record and the vision to stay ahead of the competition. Think about it. Some companies focus on one technology or one region. In a lot of cases, they are either new to the game or haven't built in a while. We develop, build and operate practically everywhere. And we develop, build and operate practically everything in every part of the energy value chain, because we've done this for decades. We skate to where the puck is, and once we get there, we rarely miss.

Bottom line, we believe NextEra Energy is well positioned to deliver strong growth over the next decade.

This is our strategy on one slide. It's straightforward. Here's what's important. Some areas of the business are driving growth today and have for a long time. They're the ones you see up here right now. Talk about Florida Power & Light Company and our renewables and storage business outside of Florida. To be clear, they will continue to drive growth.

We're also investing in other parts of the business right now, areas that will start to drive earnings as we near the end of the decade and move into the 2030s.

We will talk you through each of these areas this morning. We're going to explain how we plan to grow while prioritizing and maintaining our regulated business mix.

We are already executing on our key growth strategies. Look at what we've done in just the last 2 quarters with a lot more that we're advancing, that's not even listed on this page. In fact, you can expect off-cycle announcements from us moving forward. FPL gained approval on a rate settlement agreement a few weeks ago, which included a large load tariff. In fact, FPL has already received more than 50 large load inquiries.

Energy Resources regulated business continues to grow. NextEra Energy Transmission continues to win bids in PJM to meet demand, including one we'll talk about today. On the gas side, we're acquiring Symmetry Energy Solutions, adding their portfolio and skill sets to our gas team as we grow our pipeline business. We also intend to exercise our right to buy part of Con Ed's ownership interest, MVP.

And Energy Resources continues to deliver long-term contracted power generation projects. We're doing it in the renewables and storage space with Meta. We're partnering with Comstock Resources to build gas. We're teaming up with Google to restart Iowa's only nuclear plant, build three new data center hubs and collaborate on advanced nuclear. Combining -- we're also combining forces with ExxonMobil and with Basin to serve large loads. And the Exxon partnership includes CCS. And we're recontracting expiring PPAs to maximize the value of our existing assets. And as we'll talk about later, we have a transformational partnership with Google in the AI space.

Almost half the announcements on that slide were large load. As I mentioned a bit earlier, when you think about large load, here's what you need to know. The market is heading towards bring your own generation. At the end of the day, someone must pay for new power plants, relying exclusively on recontracting or using existing or new utility power plants could be faced with affordability concerns. We're already seeing this across the country. BYOG is a big opportunity for Energy Resources and it's low risk for hyperscalers. Working with a company like us means working with a company that has a track record of balance sheet to get the job done.

So this morning, I'm pleased to announce our new goal to place in service 15 gigawatts of new generation for data center hubs by 2035. So what exactly is the data center hub? It's exactly what it sounds like. It's a power generation complex that we can scale over time, leveraging all forms of energy. Brian is going to walk you through this later this morning including how delivering quick solutions acts as a hook with hyperscalers and unlocks the opportunity to build out a data center hub.

Back to our goal. We believe our 15 by '35 target is fairly conservative. It's what's baked into the financial expectations we are sharing with you today. Quite frankly, based on what we're seeing today, we'll be disappointed if we don't do more. We've already identified 20 potential hubs and we're working to double it to 40 by the end of 2026. The data center hubs we're announcing today alone to get us a long way towards our 15 gigawatt goal by 2035 if they're successful.

That's why we feel there's real upside here to double that goal and get to 30 gigawatts by 2035. All that said, you're not going to see large load as a separate line item in our expectations. Instead, think of large load as a new origination channel to meet our other targets like new gas build. I think data center hubs will help us get the majority of the 4 to 8 gigawatts of new gas build in our forecast through 2032 and considerably more through 2035.

Finally, let's talk about how we're leveraging technology across our business. Embracing new technology is in our DNA, making us more responsive to our customers, allowing us to work smarter and faster. Just think about how we built state-of-the-art power plants in the '60s to launch America into space from Cape Canaveral. And then tore those plants down in the early 2000s, we did it because better technology was available. Building new plants has saved customers more than $16 billion in fuel we haven't had to buy. We're pioneers in wind and solar and then battery storage. We also pioneered smart grid technology, including smart meters, improving day-to-day reliability and speeding up our storm response.

We bought a supercomputing business in 2006 and now we've leveraged that business to design AI-driven tools to help customers determine what energy infrastructure they need and when and where they should build it. For us, it's all led up to this moment, where electricity is required to power a new economy driven by technology. You might say the energy industry and the tech industry have been on a collision course for quite some time.

Well, I'm here to tell you the time has come for both sectors to work together like never before. Technology is disrupting every industry, including ours. New technologies require more electricity to power industries and homes. As a matter of fact, this new industrial revolution is powered by electricity. Now we talked much this morning about how much power demand we need in this country. But what can't be overstated is how technology is also powering our business and changing our industry. Power and technology are converging. We use data and technology every single day to reshape how power is generated and delivered.

As we discussed this morning, our data set is enormous and constantly growing, a major competitive advantage that cannot be replicated. And we use our data and technology to constantly refine how we cite, develop, construct and ultimately operate our projects. For us, data and technology is synonymous with our company as technology is the next frontier of power. It's how we challenge ourselves to think differently and work more efficiently. It's how we deliver for our customers all across America.

Being a leader in artificial intelligence is a very logical and natural next step for NextEra Energy. For us, this is simply a continuation of what we've always done, embrace new technology and most importantly, use it better than anyone else to redefine our business and our industry. We're already doing it with tools like Routify, TerraGrid, Discover, NextEra 360, Contracts.AI. And we're on a mission to use AI, not only to transform how we operate, but also to reimagine how utilities operate. Take a look.

[Presentation]

This is a game changer. Again, not just for the entire energy sector, our partnership with Google exemplifies this singular moment when energy and technology are becoming inextricably intertwined. By combining NextEra Energy's unmatched skills as America's leading infrastructure builder and operator with Google's world-class technology expertise, we are aiming to transform and literally reshape the energy sector. Google is going to help us drive and accelerate NextEra's own enterprise-wide digital transformation. This collaboration will help us accelerate our industry-leading technological innovation and AI deployment. We will also work with Google to accelerate revenue growth for NextEra Energy's Software as a Service business, platform growth for Google Cloud and further establish both as leaders in energy AI solutions.

The partnership with Google Cloud will be built on REWIRE, NextEra Energy's enterprise-wide AI transformation. REWIRE is the evolution of project momentum, accelerate. And Velocity through its NextEra Energy has achieved over $3.3 billion in cumulative annual run rate savings since 2013. And now with REWIRE, which is a completely new initiative, we expect to reimagine our work processes and accelerate innovation and unlock growth on the top line. REWIRE's objective is to transform NextEra Energy's business landscape, leveraging AI to drive measurable efficiency and productivity at an unprecedented scale. REWIRE will also serve as a product development platform for our Google technology partnership and its goal is to drive significant cost savings across the business.

We will use the Google Cloud platform to build differentiated AI-first products that can be offered to the energy sector through NextEra Energy Software as a Service business. NextEra Energy and Google will collaborate to enhance NextEra Energy's AI solutions and to accelerate joint go-to-market activities to modernize the energy sector. But there's more, we plan for our technology collaboration with Google and our Software as a Service offerings to also serve as yet another origination channel that will help tap into new opportunities to put more gigawatts on the grid. So we expect to not only be paid in cash, but to be paid in more gigawatts.

We're designing the future of energy technology and intending to set a new standard for innovation in the energy sector. We're going to take some moonshots and we're not just looking to build solutions. We're planning to use them across the entire energy value chain. By leveraging both companies' reach and reputation, we are looking to address the most pressing challenges facing utilities. Our focus is on selling real impact and unlocking growth in the energy industry. Helping customers see how our tools drive efficiency, security and resiliency in their operations. We plan for our first products to help enable dynamic AI-enhanced field operations and a more reliable and resilient grid. We'll help companies better predict equipment issues so they can proactively respond and they will have better insights into system optimization opportunities.

Our aim is for our first commercial product to be available in the Google marketplace by next year, supporting both Google's and NextEra Energy's ambitions to partner and to lead in digital innovation and transformation.

We walked you through our strategy and our proof points this morning. So what does it all mean for you? We expect to continue our long track record of creating value for shareholders. In fact, we expect to grow adjusted EPS at 8% plus through 2032 off a 2025 base. We're also targeting similar growth for 2033 to 2035 off our 2025 base. Very few give a 10-year financial view, but we are doing this today because we believe our growth is visible and diversified as we are investing in our key growth areas right now. If you believe we can achieve our expectations through 2032, you should believe in us to do the same through 2035 because the same market share assumptions underpin our plan, as Mike will walk you through.

While past performance doesn't guarantee future results, we believe it's a pretty good indicator when the road ahead looks a lot like the road we've already traveled. Remember what we've done every single year in every changing macro environment. NextEra Energy's financial performance has been the constant. We have consistently delivered year in and year out, while others have not. It doesn't matter what time period you look at. Not many other companies can say this. That's why I'm so excited for what's ahead.

Importantly, our forecasted growth is visible and balanced between our regulated and long-term contracted businesses. That's important considering that we have more than 12 ways to grow. We expect about 10% regulated growth through 2032. FPL's rate case outcome provides 4 years of expected certainty. And FPL's large load tariff positions FPL for additional regulated growth opportunities we haven't had before. Transmission and gas pipelines are expected to grow capital employed more than 20% on through 2032. On the long-term contracted front, renewables will continue to be a major growth driver while we rapidly expand storage.

We are also advancing our gas generation and our nuclear businesses. We're introducing a multi-gigawatt data center hub strategy and a new origination channel to capture that growth opportunity. And again, we're announcing an AI partnership with Google. All of this is expected to result in 8% plus adjusted EPS through 2032, and we are targeting the same from 2033 to 2035. And we'll do it all with one of the sector's strongest balance sheets.

What I want you to take away from all of this is not the art of what's possible. Instead, you should understand that we have a track record of doing this and we are poised to make the expectations that we've laid out a reality. There has never been an opportunity like this. And there has never been a company quite like NextEra Energy. We are a technology company that delivers electricity through all forms of energy. The Google announcement is just one example of that. At our core, we are a large energy infrastructure developer and builder that invests across the energy value chain, helping power Florida and our country.

This is a unique moment in our sector, and there is no better team to lead for America. There is no one else who can do what we do at our scale in every corner of this country. We have a scope and the skills to deliver where and when it matters most. I personally put almost 24 years of my own blood, sweat and tears into this company. I promise you we're not about to stop now. You have my commitment, no team will work harder for our customers or for our shareholders.

With that, let's dive into Florida Power & Light. Before I turn things over to our new FPL President, Scott Bores, I want to say a few words about him. You've all had a chance to see him in action at our Development Days and prior Analyst Days. He is wicked smart, has a terrific financial and strategic mind, knows our business inside and out, and was instrumental in helping lead FPL through its last rate case. He puts customers first and is an outstanding leader. If you have a chance to get to know him better will undoubtedly see what we get a chance to witness every single day. Scott come on up.

Thank you, John. Good morning. It's great to see so many familiar faces here in the audience. And for those who I do not yet know, I look forward to getting the opportunity to meet you.

I'm honored to step into the role of President of Florida Power & Light and lead this terrific team forward. Before I get into the FPL remarks, I want to take a moment to introduce myself and walk briefly through FPL's objectives.

I have roughly 20 years in the energy industry. The first 6 of those years were on the unregulated side as an independent power producer. The last 14 years have all been on the regulated side at FPL. At FPL, I've spent most of my career in financial roles, but with roles that have afforded me the opportunity to engage with the operating business units and really drive the strategy for FPL. I've been a part of FPL's last 4 successful rate case outcomes, and I've testified in front of our commission more times than I can count.

We recently received approval for our settlement agreement giving us 4 years of rate certainty. This stability will enable us to continue making smart, disciplined investments to support customer growth and maintain reliability. Across the country, affordability is a major concern. At FPL, that will not be the case. Our bills remain well below the national average and maintaining that advantage is our #1 priority. We are continuing to focus on improving our best-in-class operating cost performance. That is why REWIRE is going to be very important to our success and a real focus area of mine. We're really good, but we can always improve and get better.

That culture of continuous improvement is what truly differentiates FPL, embracing efficiency and adopting new technologies to make the business better and deliver more value to our customers. Florida has always grown, but today's demand tailwinds are stronger and more diverse than ever. We are in prime position to capture significant large load opportunities, from data centers to advanced manufacturing. We have developed a compelling new tariff for large load customers. It leverages our low-cost, reliable, clean system and positions FPL as one of the most attractive destinations in the country for large energy users. This represents meaningful growth later this decade and beyond.

With regulatory stability, a strong culture, disciplined execution and a unique growth runway. FPL is exceptionally well positioned for the future. And I'm really excited to lead the team in delivering value for our customers.

Before we dive in, I want to point the bar going along the top of the slides. As John talked about, we have more than 12 ways to grow. The tabs along the top are going to change colors as we move throughout the presentation. so you can follow along and know exactly which growth driver we're talking about.

Now let's talk about FPL, America's largest electric utility, where we serve over 6 million customer accounts all across Florida. Our scale and infrastructure are substantial. We own and operate more than 36 gigawatts of generating capacity. We have over 91,000 circuit miles of transmission and distribution lines. This extensive network positions us as a critical engine for Florida's continued economic growth. What sets us apart is not just our size, but our fuel diversity and operational excellence. FPL has the largest natural gas fleet in America, ensuring dependable 24/7 baseload generation to power Florida's growing communities and businesses. Florida's long-standing constructive and stable regulatory environment allows for continued smart investment to support customer growth and maintain our top decile reliability.

I don't know the last time you all had a chance to visit Florida, but let me tell you, it continues to grow. Florida remains one of the fastest-growing states in the United States with no signs of slowing down. Florida's population continues to grow. The state is expected to surpass 26 million residents by 2040. Businesses also continue to pour into the state which is no surprise given Florida's long-standing, attractive business climate. Today, Florida is a $1.8 trillion economy, the 15th largest economy in the world, if Florida were a stand-alone country. It is forecasted to grow 140% in just the next 20 years.

As we've done for a century, FPL powers that growth, and we do it by constantly planning ahead. Our relentless focus on operating efficiency has delivered nonfuel operating and maintenance costs that are greater than 70% below the national average. That results in $3 billion in savings, annual savings for our customers compared to the average utility. Our customers also care about the reliability. Our reliability is top decile, 68% better than the national average. And we make smart investments that benefit our customers over the long term. That's why our bills today are 20% lower than they were 20 years ago when adjusted for inflation. This is a proven formula, one that we keep using to serve a growing state and deliver exceptional value for our customers.

FPL's rate settlement builds on this proven formula. Affordability is a big deal across the country. It's a great place to be sitting in right now to have a rate case behind us in 4 years of rate certainty. Our 4-year rate settlement agreement enables us to continue our track record of keeping bills low and our reliability high. The plan starts in January of 2026 and runs through the end of 2029. Under the terms of the settlement, we can earn up to an 11.95% return on equity and our equity ratio remains unchanged at 59.6%. As they have done in prior settlement agreements, the commission has approved a noncash mechanism that allows us flexible amortization over the 4-year period.

For our customers, this is a huge win. The typical residential bill is going to grow at just 2% annually from 2025 through 2029. That is how you neutralize an affordability concern. The settlement also includes a large load tariff, it strikes the right balance, provides hyperscaler speed to market at a competitive price, but just as important, it protects our general body of customers.

Four years of rate certainty means 4 years of being able to stay laser-focused on how we operate. For us, this means continuing to drive costs out of the business by leveraging artificial intelligence. As John pointed out, this is not new for us. At FPL, we relentlessly drive costs out of the business by embracing innovation and operational excellence, which keeps bills low for our customers.

In 2024, we avoided 44,000 truck rolls by leveraging AI algorithms. And our AI-powered smart grid helped us prevent 2.7 million customer outages. Now with REWIRE, we're excited to transform our business even further. A key focus area for us is reinventing how we operate the grid, optimizing every step from generation dispatch, to transmission, to fuel procurement and maintenance. This end-to-end approach means greater efficiency, smarter operations and even more cost savings we can pass along to our customers. At FPL, innovation isn't just about technology, it's about delivering real value for our customers.

Florida's pro-business tax climate, growing workforce and strategic access to global markets, makes Florida an attractive place to do business. Florida is growing differently than it has in the past. We have always had strong residential customer growth and we expect that to continue. But in addition, we're seeing new growth. And that growth is being driven by a diverse set of high-growth industries. Florida leads the nation in a number of key economic indicators. We're #1 in income migration, #1 in manufacturing job growth and #1 in corporate headquarter relocations, just to name a few. The state expects to add 1.5 million new jobs by 2034. And over the last 6 years, Florida has added 3 million new businesses. This is high-quality economic development with high wage jobs and innovative industries, creating unprecedented energy demand. Florida stands ready -- or FPL stands ready to serve and our smart infrastructure investments help make this economic transformation possible.

Together, Florida and FPL are ready for large loads and data centers. And what's not to like, we have low bills, high reliability, low latency, one of the biggest population clusters in America in one of America's most pro-business states. We have the tariffs in place to serve and it's important to note there is no limit. While our first tariff is limited to 3 gigawatts in specified zones, we have a second tariff that allows us to serve incremental demand at a contracted formulaic price. FPL brings superior service and reliability, along with the ability to develop, build and operate all forms of energy.

An FPL system, has the flexibility to meet this large load demand. This is not the case for other utilities across the United States who do not have the same efficient baseload fleet as FPL. The drumbeat of our system, it's our efficient natural gas and nuclear, accounting for roughly 90% of our energy mix. This has allowed us to layer in cost-effective solar and battery storage. And you can see how they work together in an integrated system, charging the batteries when the demand is lowest and at the lowest marginal cost, then discharging that to the grid when the batteries and the electrons are needed most. Together, this diverse energy mix gives us the ability to optimize how we're dispatching our assets and accommodating large load.

All of this to say, hyperscalers understand the need to be in Florida. It is such a compelling proposition, a competitive price, an efficient and dependable generation fleet and superior reliability. There is significant interest. We've already had more than 50 inquiries representing more than 20 gigawatts of power. And importantly, we have the ability to quickly build the generation infrastructure needed to keep supporting that kind of demand as it continues to grow.

Here's a simple way for you guys to think about it. Every gigawatt of large load is equivalent to roughly $2 billion of CapEx opportunity to FPL. And that CapEx for large loads earns the same return on equity and has the same equity ratio as all other FPL CapEx. As I mentioned, Florida is already a top state to do business and the law passed earlier this year, gives qualifying data centers, a 10-year sales tax exemption. When you put it all together, you're looking at an opportunity to bring data centers to Florida on top of the growth that you traditionally expect from FPL.

FPL was very thoughtful in designing its tariff. We wanted to ensure it would achieve the right balance. One that will attract large load customers but at the same time, protect the general body of customers by ensuring these large load customers pay their fair share of costs. Again, this is not the same elsewhere in the country where affordability and rising utility bills are becoming a major concern. As I mentioned earlier, FPL bills are consistently well below the national average for a reason and we intend to keep it that way. That's why we've designed our tariff to make sure our customers are not footing the bill. And we've done it while still offering the hyperscalers a competitive price, along with all the other benefits of being an FPL customer like high reliability and unmatched storm response and outstanding customer service.

And you can see the progress we're already making. As I mentioned, we have more than 20 gigawatts of interest. Roughly 8 gigawatts are in active origination. So think of that as the early stages of doing a deal, doing their due diligence. We have 9 gigawatts in advanced discussions. These are customers who have completed an engineering study, and we believe we can begin serving as soon as 2028. All of this is really exciting.

But here is what's so important to understand. FPL has been growing regulatory capital employed at close to 9% for years. We expect that to continue moving forward. That's because Florida is a growing state, which requires continued investment. The difference is that we now have so many more ways to do it, including large load.

Powering a growing state, while keeping reliability high requires sustained smart capital investments. That's why we expect to invest $90 billion to $100 billion at FPL and grow regulatory capital employed at a 9% compound annual growth rate through 2032. This is going to require continued investment in our transmission and distribution system. We're also going to continue to make the storm hardening investments as we see those benefits.

As Florida continues to grow, we're going to need to continue to invest in new generation assets. Right now, that's solar and batteries, which are the perfect complement to the backbone of our system, nuclear and natural gas. This is likely to change as we start to add large load to our system in 2028 and beyond. In the near term, it's likely going to mean more battery storage. But eventually, FPL is going to need to add new gas generation. Bottom line, while technologies may shift, the need to invest in more generation and support growth in Florida will not. FPL's commitment to smart, sustained investments ensures we're ready to power Florida's continued growth.

As we look at Florida's remarkable growth and the opportunities ahead, I want to emphasize what truly sets FPL apart. Our commitment to putting customers first, the virtuous cycle. It's not just the concept. It's the foundation of everything we do at FPL. It's how we create lasting value, enabling us to continue making smart investments to keep bills low, while maintaining our high reliability. Our unmatched scale, deep experience and technology help us deliver on this commitment.

And we will continue to take the long view, as we've done for our entire 100-year history to making smart, long-term capital investments that will benefit both our customers and our shareholders. Our track record positions us as the ideal partner to meet Florida's expanding large load growth and power the state's next wave of economic transformation. I could not be more excited about our growth opportunities and to lead this great FPL team.

Now it's time for a short break. After the break, we're going to bring Brian up to talk through Energy Resources.

I have 9:42, so we're going to do 9 -- 15 minutes. We'll say 9:57, we'll come back and start. Thank you.

[Break]

Please welcome to the stage President and CEO of NextEra Energy Resources, Brian Bolster.

Get that picture of me as quickly as possible. So good morning, and welcome back from the break. I'm thrilled to walk you through the enormous opportunities we have ahead of us at Energy Resources. So let's start with the regulated side of the business.

The golden age of power isn't just about generation. This country needs new transmission infrastructure. Electric transmission investments are expected to double in just 12 years. The country also needs more gas pipelines. The gas distribution network in this country was already constrained before demand took off. Now natural gas demand is expected to jump 25%. The U.S. needs to expand the current natural gas infrastructure, and this need is a major opportunity for us.

On the electric side, we have a great starting point. NextEra Energy Transmission has a total installed and secured rate base of $8 billion. That is a small utility that's about to get a whole lot bigger inside of energy resources. To put that in perspective, NEET is about twice the size of Gulf Power when we bought it back in 2019. But this small utility has access to proprietary and cutting-edge technologies like TerraGrid and Routify. Many of you have seen that technology in action at our previous investor events. It gives us a huge competitive advantage, and it helps us play in every region in the U.S. and in Canada.

Today, we're finding investments in this business across multiple channels. First, there's new build opportunities that's both competitive and greenfield projects. Second, we can partner with people who've developed their own projects. We're seeing a lot of interest from municipal utilities, co-ops and investor-owned utilities. Finally, our existing footprint generates system upgrades. This is built-in growth that will compound as our footprint scales. When we put it all together, we think we can grow this $8 billion utility to $20 billion by 2030, and then to the mid-$30 billion by 2035.

This is a recent win on the new build development side. MARL is a 105-mile 500 kV line in PJM. This represents $500 million of future CapEx, and this project is critical to this region. It unlocks bi-directional power between West Virginia and Virginia. And it also facilitates 4 gigawatts of import capacity to PJM. It's an example of new power demand, creating new opportunities for NEET.

PJM also just recommended NEET to build out a 765 kV transmission line in partnership with Exelon. In fact, that news just came out last week. This is $1.7 billion of capital investment opportunity. By the way, that represents 20% market share on this $10 billion tranche that was awarded by PJM last week. This line will serve as a catalyst for economic development in the region. It will also facilitate more than 7 gigawatts of power generation. Again, new power plants need new transmission. They go hand in hand.

Turning to natural gas. We have a massive national footprint. Today, we have 1,000 miles of FERC-regulated pipeline, and our pipeline capacity stands at 3.5 Bcf per day. And together with Symmetry, which I'll talk about in a minute, we transported about 4,900 trillion BTUs. We talk a lot about being a big consumer of gas. I hope this picture makes it very clear. We have a very sophisticated understanding about how to move gas around this country.

Our announced acquisition of Symmetry Energy Solutions is a perfect addition to this footprint. Symmetry does business in 34 states. It has 5,500 C&I customers. With Symmetry, we're expanding our core competencies and adding more customer relationships in the gas space. In a world we're adding gigawatts of gas generation, understanding how to move gas around the country is the skill set that cannot be underestimated. Symmetry is another way we're able to distinguish ourselves from our competitors in the current market environment.

As we look to grow our gas business organically, we don't have to look further than our existing footprint. We're a big player in natural gas in the Southeast. I'm confident we're going to see new projects in this region. Just look at the demonstrated demand for natural gas. It's going to create new opportunities for us. It's also going to allow us to expand our existing assets. MVP by itself has multiple ways to grow. It's an obvious path to bring competitive Marcellus gas further down into the Southeast. That strategic value is why we intend to exercise our option to acquire Con Ed's ownership interest in MVP. Overall, when you look at the market and our positioning, you have to get excited about our prospects in this business.

Putting both opportunities together, this is what our regulated business looks like over time. We expect to grow regulatory capital more than 20% per year over the next 7 years. Our national footprint, our balance sheet and our deep domain expertise are going to allow us to create another major utility outside of Florida. And we'll do it by working with the same customers in the same regions that we've worked with for decades. No one else can replicate the breadth and depth of opportunities that we have, and we look forward to delivering on the growth in front of us.

Now let's move to our generation, storage and customer supply business. We have a lot of ways to win, as you can see on the screen. These are all businesses that we understand very well. And these are businesses that play to our strengths. So let's dig into them one by one.

We have never been better positioned in renewables and storage. You can see it in the scale and growth rate of the backlog. And I'd like you to look at the blue line that's on the page. That's CapEx. That's what drives earnings. We get paid to put capital to work and our growth rate in capital is over 20%. And one of the benefits of the capital intensity per megawatt increasing is we can be picky about which megawatts we choose to develop. We are focused on getting the best returns on our capital.

And you can see how we've protected that backlog. We've protected our tax credits. We've mitigated our tariff exposure. We've largely domesticated our supply chain to address FEOC, and we've hedged interest rates. And we have an inventory of backup projects that is 1.5x our backlog, and that's why we're winning in the current environment. We are very well positioned in this what is becoming a seller's market.

An increasing percentage of that storage is -- that backlog is storage. So I want to spend a couple of minutes on that topic. The opportunity in storage is really hard to overstate. Nearly every region in the country needs capacity. Energy storage is the only capacity resource available in scale through the end of the decade. You can see the clear advantages for energy storage versus a gas peaker that are on this page, and it's not just cost. You can charge a battery with all forms of energy. You can put it pretty much anywhere you want, and you're certainly not waiting for a gas pipeline to hook it up.

That's why energy storage is the fastest part -- fastest-growing part of our backlog. Three years ago, in 2022, we added 1 gigawatts of energy storage to our backlog. That represented about 12% of that year's backlog. Over the last 12 months, we've added 4.7 gigawatts of energy storage that now represents about 1/3 of that period's additions.

We're clearly a market leader in energy storage. We're seeing success because we attack it from so many different angles. Based on our national footprint and our massive land position, we can work with nearly every customer in every market on stand-alone storage, but we can also take advantage of our existing footprint by co-locating storage where we already have connections to the grid. Our in-depth understanding of the grid also allows us to create opportunities by offering solutions to grid operators.

And those traditional use cases are being supplemented by others. We're seeing emerging customer demand to add more storage to existing sites, to double capacity at that site. And while it's early innings, we're looking at long duration opportunities.

Let's spend a minute on this emerging expansion opportunity. The beauty of it is you're on an existing site already permitted and connected to the grid. You have the existing assets on the backbone infrastructure. Expanding is as simple as hooking into the existing inverter from the initial project. Again, the land is there, the interconnection is there. We have speed to market, no land or upgrade cost. It's a cheap and fast way to supplement capacity.

Bringing all those markets together, here's our expected battery storage pipeline through 2032. If you look at new and co-located assets alone, we have a 95 gigawatt inventory. If you assume we can ultimately expand each of these sites, we could literally double our backlog. It's a huge position in a market that's showing amazing demand. We're an advantaged player in an advantaged market, and we expect to put a lot of capital to work here.

All right, well, we love our storage position, but don't discount solar and wind. Solar and wind are competitive today, and that's going to be true into the future. We think that's going to be true even after tax credits go away. But the expiration of tax credit should create a major market opportunity for us. Listen, the reality is we've seen this movie before. As we get closer to the end of tax credits, people will be scrambling for the remaining inventory, and that's going to be a great time to be us.

Look at how the market is setting up. Electricity demand isn't slowing, but the pool of developers that are actually able to have inventory in 2029 and 2030 is pretty thin. Remember, very few people have the ability to safe harbor equipment. Fewer still have the supply chain expertise to deal with tariffs. And no one has the inventory that we have. For us, this market should allow us to secure premium returns. And in fact, I'm hopeful to take market share in this market. It's not in our base case, but I wouldn't bet against us picking up share at this time.

So what does it mean for the business? There we go. We're going to build a lot of generation. The scale is unprecedented for the company or the industry, and I don't think anyone else can do this. We're the only national power company. Our existing backlog gives us a huge head start. Our existing footprint creates a lot of proprietary opportunities, and we're the biggest player in storage, which is the biggest part of the market. We are firing on all cylinders in what many consider to be our most complicated market. We have never felt better about our market position.

By the way, you don't have to take our word for it. Look at what Meta is doing with us. We're now up to 2.5 gigawatts of agreements with them. And we're working with them in multiple markets on multiple deals. In New Mexico, we're using solar and storage to power data center, but we have over 10 deals with them. And they keep coming back to us because we're truly a one-stop shop for them. Remember, we're not trading around assets. We're building what they need, where they need it. And I'm proud to say together, we're going to create nearly 2,500 construction jobs and bring meaningful economics to each of these regions.

Okay, let's move to gas generation. This is not a new market for us. We've been doing it for decades. In fact, no one has built more gas-fired generation over the last 20 years than NextEra Energy. NextEra Energy owns and operates the largest gas fleet in America. As America looks to add gas generation, we are clearly the partner of choice.

And our pipeline shows it. We have about 20 gigawatts of new gas generation opportunities in 11 states. Some of these are at our hubs, but many are stand-alone opportunities to serve native load. We secured 4 gigawatts worth of turbine slots from GEV to support that pipeline, and that's just to get us started. We know as we move forward, we're going to have access to more turbines when we need them. We'll talk about some of these projects in a little bit, but as we sit here today, we're confident our existing pipeline alone has us positioned to deliver against the expectations we're laying out today.

All right, well, the gas opportunity will start to deliver at the end of the decade, the nuclear opportunity actually starts now. Point Beach just received its subsequent license renewal to operate for another 20 years, and we're seeing real interest for that capacity. Case in point is our recent PPA with WPPI for 14% of that plant's capacity. This deal alone contributes $0.03 of EPS. If you were to extrapolate that to the rest of the plant, you get $0.21, which is a meaningful premium from the current attractive contract that we have. We're also seeing similar interest at Seabrook. And between the two of them, we have 1.7 gigawatts of available capacity we're offering to the market.

Our experience at these plants as well as Duane Arnold tells us this is a premium product and we're exploring a lot of interest from hyperscalers. It checks the box on additionality and it's carbon-free. And don't forget each of these sites has space for multiple gigawatts of SMRs, and we're laser-focused on developing the SMR opportunity. We're spending time digging in with the various OEMs. We're also making sure when we move forward, we have the right risk sharing in place. We know that's important.

And this is time that's well spent. We know hyperscalers like the product. We have 6 gigawatts of co-location opportunities at our nuclear sites and we have the ability to build a greenfield sites in our land position throughout the country. The market has huge upside for us, and we're well positioned to develop it.

Okay, let's turn to capturing large load. Our experience has shown that you need to offer more than just a bunch of megawatts. Speed matters, the ability to unlock sites with transmission and market solutions matter, unlocking that first gigawatt is the key. Once you show the party that you can bring solutions to the table, the opportunity to add scale really comes into focus. And at that point, you're creating some very interesting opportunities. But multi-gigawatt opportunities don't just fall in your lap. To get multi-gigawatt sites, you're going to need to be able to deliver the total package. And here's a video which brings that idea to life.

[Presentation]

Our Duane Arnold restart is the perfect example of delivering a near-term solution and building on it. In the short term, we've increased our plant ownership to 100% and locked in a 25-year PPA with Google. We expect the 615-megawatt plant to be online no later than Q1 2029, pending regulatory approvals. And this would be a huge win for Eastern Iowa. We're going to create more than 1,600 jobs and inject more than $9 billion into the economy. But there's more to the story. As we talked about on our last earnings call, Duane Arnold establishes a scalable data center build-out over the next decade. It's also facilitating a national conversation with Google. And today, we're announcing that we're building on our partnership with Google through a new JDA. This is separate and apart from the technology partnership that John discussed earlier.

Together, the companies will partner to develop three already identified gigawatt scale data center hubs. By the way, these are just the first three. We are certainly looking to do more with them. And our expectation is that these sites will each create multiple gigawatts of incremental generation opportunities over time.

Our recent collaboration with Comstock represents another potential path to developing a data center hub. By working with Comstock to secure land and create a path to near-term power, we're demonstrating the viability of a multi-gigawatt site. We think we can build 8 gigawatts at this site to support data center development. Here, the hook has been able to deliver multiple gigawatts at scale in 2 to 3 years. We're currently in negotiations with the hyperscaler to be the anchor tenant at this site. And that combination of scale and speed to market is what drew that party to the site. We hope to be able to talk more about this opportunity in the first several months of next year.

We have a similar story in North Dakota. Here, we're partnering with the local co-op Basin. We think this region is going to be very attractive to the hyperscaler community. And by working with Basin, we're able to show them a path to grow in the region. The plan is to develop a 1.5 gigawatt combined cycle plant to anchor the site. There's also an opportunity to expand with incremental renewables, storage and gas in the region. We think there's a lot to like about this opportunity and are actively engaging the market in partnership with Basin.

All right, with ExxonMobil, we're testing hyperscaler demand for gas generation paired with carbon sequestration. We think decarbonization is important to hyperscalers, and we are very excited to partner with ExxonMobil here. The partnership takes Exxon's sequestration expertise and pairs it with our power development expertise. We have 2,500 acres secured and advantaged access to high-voltage transmission. We'll jointly market this 1.2 gigawatt site to hyperscalers in Q1. Based on our work with hyperscalers to date, we think this is going to turn out to be an attractive site. And there's more to come with ExxonMobil if we're able to prove out demand at this site.

Our ability to meet hyperscalers exactly where they are today and grow with them over time is what sets us apart. It's clear. One size does not fit all. So we are pursuing multiple different paths to offer compelling solutions to some of the most sophisticated customers in the country. And these initial hubs are primed to grow significantly as we continue building to meet demand. No one can put together a portfolio like this because no one can offer the variety of solutions that we can.

And these examples are just a few of the opportunities that we're working on with hyperscalers. Hyperscalers are a massive channel for us, and we're in a class of our own. As a result, we have a big backlog of alternatives beyond the deals that we've highlighted today. As we sit here today, we have 50 gigawatts of opportunities in various stages of readiness. That puts us in a great position to meet our expectations.

All right, let's move on. Not every source of growth requires us to develop new assets. The optionality in our existing footprint is also expected to drive meaningful shareholder value. We expect about 6 gigawatts of repowering through 2032 and about 7.5 gigawatts of recontracting opportunities over the same time period. The PPAs for these projects were signed about a decade ago. I'll point out the obvious, it was a much different pricing environment at the time. As those PPAs start to expire over the next several years, recontracting will command a much higher price.

Similarly, our customer supply business is a great source of capital-light growth. This is a business where we get paid to move gas and electrons for customers, and we do it at scale. We are a top 3 player in both markets. We have more than 1,000 enabling agreements with power and natural gas entities. The team actively manages roughly 40 gigawatts of generation for energy resources and third parties, and the team delivered more than 220 million megawatt hours of physical power in 2024. As demand for power grows, we will expect to move more molecules and more electrons.

What's really interesting about this business is what it does for our other businesses. For example, we get a real benefit from customer supply as we develop data center hubs. It puts us in every market and creates relationships with nearly every market participant. You add that market footprint to our ability to help supply services in the early stages of a project and you create a real competitive advantage. For example, we can procure gas to enable expansion. We can deliver power before the assets are even in place. The bottom line is our customer supply business can help us provide a comprehensive energy solution nationwide.

All right, finally, like the rest of the enterprise, Energy Resources is all in on our new REWIRE initiative. This is a path to improve our processes, drive our explosive growth and cut costs. We're targeting $150 million of savings out of this process at Energy Resources. More importantly, I firmly believe we're going to make the best team better. We are just scratching the surface on what AI can do for us.

So that's our opportunity set at Energy Resources. And I wouldn't trade our position for any energy company in the country. We're the only national power company. We're the only company in the country that can respond to every aspect of the golden age of power. Energy Resource has an unmatched platform that can stand toe-to-toe with every customer that's in this market. Our expertise spans technologies and geographies. Our solution orientation allows us to innovate, execute and lead in an era of American energy dominant with so many ways to win. It is hard to express how fortunate I feel to be leading this amazing team.

With that, I'm going to hand it over to Mike, who will walk us through our financial outlook. Mike, the stage is yours.

Thank you, Brian, and good morning, everyone. I'll spend time walking through how the enormous opportunities in front of us translate into long-term, strong financial performance. And as John mentioned at the outset, we have 10 years of financial visibility. We expect to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032. And we are targeting that same growth through 2035, all off a 2025 base. We are tightening our 2025 adjusted earnings per share expectation range to $3.62 to $3.70 per share, and we are raising our 2026 adjusted earnings per share expectation range to $3.92 to $4.02 per share. Importantly, we are targeting the high end of our adjusted earnings per share expectation ranges in both 2025 and 2026.

And what provides us that confidence? We start with our history and the capabilities that we have developed to meet this moment. Despite the industry having limited to no load growth, we have consistently grown adjusted earnings per share above 8% over the past 20 years. It doesn't matter what time period you pick. The result is the same. Earnings per share growth above 8%, while our peers have averaged less than 3% earnings growth over that same 20-year period.

But load is growing, and many peers in our industry have increased their expected earnings per share growth rates. Historically, one company has delivered. From 2021 to 2024, NextEra Energy exceeded consensus earnings estimates by 2.5%. We are the only company to outperform. Why? Because there is no company that matches our core strength of building America's energy infrastructure. And today, there's an opportunity set that perfectly matches our skill set. We have multiple ways to grow, stable earnings and stable cash flows across both our regulated and long-term contracted businesses. I'll provide an overview of those growth drivers and then provide the building blocks that underpin our forecast.

Now in the near term, when customer affordability is in focus, FPL offers certainty. A 4-year commission approved rate case settlement that allows for smart investments while keeping customer bills low. Energy Resources continues that certainty with a 30 gigawatt backlog of investment opportunities. To put that in context, 30 gigawatts is roughly equivalent to FPL's current generation fleet and represents $45 billion in visible investments. Now we are investing and originating today for the projects that will be our earnings drivers in 2028 and beyond, turning three key earnings drivers into more than a dozen. We're not dependent on any one earnings driver, but this balanced approach creates multiple paths for success.

We believe that this balanced approach will also allow us to maintain our 70% regulated business mix for the next 10 years, with 90% of our cash flows coming from our regulated and long-term contracted businesses.

Now the first building block in our growth is our regulated growth, the bedrock of NextEra and 70% of our business. Historically, that has meant FPL, which has grown regulatory capital employed at 9% per year. Now we expect to grow regulatory capital employed at a compound annual growth rate of 10% across NextEra's regulated businesses.

And we have many ways to achieve this growth. We have our traditional growth at FPL, driven by diversified load growth in one of the fastest-growing states in the nation. We have a large load at FPL, based on a competitively priced tariff speed-to-market advantages while protecting customers. We have a national technology-enabled electric transmission utility that we are building much bigger. And we have a strategically positioned natural gas transmission business.

We believe that our disciplined approach to regulatory capital deployment creates a repeatable model for long-term shareholder value creation. And Armando has mentioned this before, but we have a simple earnings equation that underpins our regulatory growth strategy. Capital employed times our adjusted equity ratio times our return on equity equals net income. It is that simple. And FPL's allowed equity ratio is 59.6% with a return on equity upper bound of 11.95%.

Our transmission businesses have similar allowed equity ratios of 50% to 60%. And they generally achieve FERC-regulated equity returns of 10% or higher. And this formula has driven our ability to deliver consistent long-term value for shareholders and customers.

And for our long-term contracted business, there is a simple equation as well. Our market opportunity times our market share equals our development expectations. And the market opportunity is massive. The golden age of power demand is creating the need for all forms of generation. And we see a generation market opportunity of over 500 gigawatts across renewables, storage and gas-fired generation. To put this in context, it represents a nearly $1 trillion investment opportunity across the United States. And this comes at a time when our development advantages have never been more pronounced.

NextEra Energy is the only company with a national scale and the ability to take full advantage of this opportunity. Just look at our capabilities. It is not one single thing that gives us an edge, but all of them combined. They build on top of each other, allowing us to build great projects with solid returns. We achieved levered equity returns between 13% and 20% plus on our projects. And we have a positive spread to WACC of 350 to 450 basis points. These are projects that create significant shareholder value under any measure. And over the last 12 months, we've moved more projects to the high end of our ranges, increasing our average returns by over 250 basis points or nearly a 20% increase in earnings power.

And when we look at what drives our growth in the future, we again need to look at our past. Historically, we've had a 15% to 20% market share in renewables, a 20% to 30% market share in storage. And we have built more gas generation than anyone. To grow our earnings through 2032, we fully expect to do the exact same thing. Same renewables, same storage market share, a 5% to 10% market share in gas-fired generation and having multiple channels to originate. We will continue to work with utilities, municipalities and cooperatives to provide load growth solutions. We will continue our work with commercial and industrial customers to meet their needs, and we are leading the way in bring your own generation with hyperscalers.

When we combine our competitive advantages and the opportunity set in front of us, this is what it looks like, 80 to 110 gigawatts of new generation through 2032, more than doubling our current generation capacity. Now we've made a few changes to the layout of our development expectations as we provide more customer solutions for our customers. We've added gas and nuclear generation, and we've included repowerings in the wind category. And John mentioned this earlier, but what's not included explicitly as a category in our development expectations is large load.

Large load is an important origination channel, and it is included in our development expectations across storage, across nuclear, across natural gas, and renewables.

And while our 2026 and 2027 development expectations have decreased by about 2 gigawatts, this is offset by the increased CapEx per gigawatt that we're investing in and the higher returns we are achieving on our projects. Recall, we've seen the earnings power of our investments increased by 20% over the last year alone. Now in 2028 and beyond, we see robust market demand with a pull forward of renewables through 2030 and strong growing demand for storage. We expect that our gas-fired generation pipeline including the announcements today with Comstock, Exxon and Basin, to become the backlog for our gas-fired generation expectations as we sign definitive agreements over the next 12 to 24 months. But don't expect us to wait until quarterly calls to make those announcements, they will come as soon as we sign the deals.

On the nuclear side, Duane Arnold is expected to come online in 2029. And although not in our expectations, small modular reactors could deliver growth through 2035. We are also focused on optimizing the value of our existing portfolio. We have the opportunity to recontract approximately 7.5 gigawatts through 2032, 1.5 gigawatts of nuclear and 6 gigawatts of renewables. And our existing PPAs were set at prices much lower than the current pricing environment. And we believe that our recontracting on our renewable fleet can be done at ranges of $15 to $30 in excess of where they were contracted 10 years ago.

As Brian mentioned, customer supply is an important business for us. It is at the center of the energy value chain and helps provide comprehensive energy solutions for our customers. To maintain these competitive advantages, we'll maintain customer supply at roughly 10% of NextEra Energy's adjusted EBITDA. And through REWIRE, we have a unique opportunity to grow our industry-leading technology while reducing costs. And we expect to achieve pretax cost savings at Energy Resources of $150 million per year.

Now with over 12 ways to grow, we have multiple levers that can drive outperformance. We can increase our regulatory growth to additional large loaded FPL where we can accelerate the build of our national transmission utility. In our contracted business, we can increase market share, we can increase returns and we are aiming to do both. One area to focus on is gas-fired generation. It moves the needle. It provides roughly 2x or more the CapEx opportunity per gigawatt than renewables or storage. And based on the conversations that we are having today, it provides mid-teens to 20% levered equity returns.

Now we only have 4 to 8 gigawatts of gas-fired generation in our expectations through 2032, but we have a current pipeline of over 20 gigawatts, and I know that it can be confusing, but that pipeline excludes everything in our data center hub strategy. And if we executed on that pipeline, it would create an additional $30 billion to $50 billion of investment opportunities in excess of our expectations. In addition, our data center hub strategy demonstrates the power of our platform. We combine our capabilities and scale with hyperscalers that need power nationwide. The result of a repeatable platform for attractive investments.

Our base case is 15 gigawatts by 2035, but our upside case is 30 gigawatts by 2035. Executing on our upside case would be an additional $30 billion to $40 billion of investment opportunities. When you combine that with our gas-fired generation opportunity, that creates an additional opportunity set of $60 billion to $90 billion or a 20% increase to 30% increase to our capital investment expectations.

Our expectations also do not include small modular reactors, project M&A nor potential revenue opportunities from our Google partnership. We have a differentiated platform, which allows us to be first movers in an evolving market. and invest in new opportunities before others can see them.

Turning now to our financing plan, where we start with our focus on credit quality. We match high-quality, regulated and long-term contracted cash flows with financial discipline to drive superior ratings. And the numbers speak for themselves. NextEra Energy has the #1 ranking amongst S&P utilities for adjusted equity ratio, adjusted FFO to debt and debt to adjusted EBITDA and a strong balance sheet creates shareholder value. It provides access to global capital markets. It provides unfettered liquidity, and it provides customer confidence that we can deliver. NextEra Energy is the partner of choice.

Now our funding plan is centered on these stable cash flows and access to large liquid markets. We believe that this balanced approach supports accretive investments, which drive shareholder returns. And we access diverse markets, which makes our plan resilient to market disruptions. And as we invest in our long-term contracted assets, they produce stable contracted cash flows for 20-plus years, and they support an investment-grade capital structure that is based on prudent corporate finance principles of matching long-term assets with long-term amortizing liabilities.

When contracts end, there are no surprises or bullet debt waiting to be paid. We combine this conservative financing structure with our corporate cash flows to fund 96% of our capital investments. The result is a diverse set of predictable cash flow streams. And we use that cash flow to fund growth and accretive investments. And as a result, NextEra Energy's expected equity issuances average only $2 billion a year. That's in line with our historical practice and represents approximately 1% of our market cap and 1% of our average daily trading volume.

Now because of these attractive growth opportunities, we are adjusting our dividend per share growth expectations. We're maintaining 10% growth through 2026 and adjusting '27 and '28 growth to 6%, all off a 2026 base. We believe that this will allow us to make accretive investments while keeping any equity needs to a minimum. And we believe in diversifying all of our financing sources, equity is no different. So we are putting in place a $4 billion at-the-market issuance program, which will allow us to issue small amounts of equity in the open market. We'll access this program periodically over time. But I do want to make two things clear. First, we expect to utilize equity units as our primary means of issuing equity; and two, we will not be issuing equity in 2025.

Now in 2025, almost 40% of Capital Holdings' debt issuances were raised internationally. And not only does this mitigate market risk, but allows us to access the most efficient capital. We estimate that our financing strategy saves us 5 to 10 basis points on every dollar that we raise. And while 5 to 10 basis points may not seem significant, with up to $150 billion of planned issuances through 2032, this could save us up to $150 million per year in interest expense. And our access to liquidity is unmatched. We partner with over 85 banks globally, providing 2x more liquidity than our next closest peer. This provides us with the flexibility to move quickly and the raising of capital has never been a constraint.

And when you have a 25-year track record of building projects with investment-grade off-takers and 15- to 20-year PPAs, and you build them on time and on budget with top decile O&M and conservative investment-grade metrics, investors want to partner with you. They understand the difference in quality and adjust the returns accordingly. The result increases our project levered equity returns by 100 to 200 basis points versus our peers.

So now that you have the building blocks and our financing plan, I'll pull all this together and answer what it means for shareholder value. Now I've said this before, but it's worth repeating. We have 10 years of growth visibility. We expect to grow NextEra Energy's adjusted earnings per share at a compound annual growth rate of 8% plus through 2032. We are targeting that same growth rate through 2035, all off a 2025 base. And our 10-year visibility is not only related to earnings. We expect that our growth in operating cash flow will meet or exceed our adjusted earnings per share compound annual growth rate through 2032. And we are targeting that same growth in operating cash flow through 2035.

Ten years of visibility across earnings and operating cash flow and significant upside potential. That's why NextEra Energy stands in a category of one. One company with a 2-decade track record of execution. One company with a national footprint and over 12 ways to grow, all driven by one core key strength. Building America's energy infrastructure. And we have one goal to deliver shareholder value.

Thank you for being here this morning. This concludes our prepared remarks.

[Presentation]

The NextEra Energy executive management team will now host a Q&A session. If you have a question, please raise your hand and a member of our Investor Relations team will provide you with a microphone.

So good morning again, and thank you so much for joining us. In just a moment, we'll begin our Q&A session with the NextEra Energy executive team. We appreciate your patience. So we set up the stage here. Joining us this morning will be John Ketchum and Scott Bores, who you heard from this morning, and FPL CEO, Armando Pimentel will also join us on stage, along with Brian Bolster and Mike Dunne. Again, if you have a question, please raise your hand. There are different Investor Relations personnel in the back. They'll come forward to you. I see Shar, you already have a question. You just need to wait for executives to get on stage. So we'll start with you. So I'll ask the executives to come join us then. So Shar, you're up.

It's Shar Pourreza with Wells Fargo. Just quickly, just on the Comstock and Basin electric deals, lots of opportunities around gas. As we wait kind of for those deal announcements, any sense on how we should think about pricing, especially versus the clean energy attributes of nuclear, we do have some pricing points with nuclear. Then maybe how should we think about risk mitigation, including like kind of gas hedging and execution risk with contracted deadlines, right? So some things could be out of your control like labor. So just maybe how do we think about that?

Yes. So when we look at our gas opportunities, I think we've said before, we're kind of targeting, Mike, had it in his presentation, 15% to 20% levered equity returns in that business. A lot of progress on the gas side, not only with Comstock, with Basin, with Exxon and with the CCS opportunity as well. And then all these data center hubs opportunities, right, that 15 by '35. A lot of those will get started with what I call bridge power solutions, which might be renewables. It might be storage, it might be aero derivatives, but then as we're accommodating that first phase of that build-out for the data center, we are going to go ahead and build along with them.

So we're also at that same time, planning for the gas to come behind it. And that creates, as Mike said, a big upside opportunity for us going forward. And so as we think about what the future of that business looks like in terms of labor supply, the ability to contract with EPC contractors, to be able to work with GE Vernova to get access to turbines. We mentioned the 4 gig, we've already got reservation rights in place on. It comes back to scale and buying power, Shar. I mean when you think about the EPC contractors that we would do business in that space, they're the same folks that we've been doing business with for 20 years. And we will, I think, have front of the line commitments from those folks.

So I really don't worry about the labor supply. I don't worry about getting our hands on turbines. I think the returns are going to be very strong. I think the CapEx opportunity is substantial. I think it's well -- I do think, as I said in my remarks, we're being conservative on the 15 by '35. I'll be disappointed not to be at 30 by '35, just given what we've seen. We already have 20 hubs, already in motion, expecting to have another 40 hubs in our pipeline by the end of 2026. So in great position there and not concerned about labor, access to equipment, all those things, we're in great shape.

One gigawatts at Point Beach remains open, and that's obviously excluded from your deck post the PPAs. Any sense on sort of how the conversations are going with the counterparty? And just from your messaging today around BYOG, should we assume a hyperscale deal there would be a little bit more challenging? Or are there options there? It's an existing site. So I guess how does that hit on your additionality point...

Yes, it is a terrific site and a really attractive site to hyperscalers. And so one of the things that we highlighted today is the WPPI PPA, for example, I think that's for about 175 megawatts that would take us for another 20 years basically through the second license extension in the 2050s. And just that 14% of the capacity that they have is $0.03 of EPS on a full plant basis, that would be $0.21 of EPS, but just think about the possibilities on the other 85% or so of that plant in an area of the country that is really attractive for hyperscale build-out. I mean it's really an opportunity that could create in and of its own a data center hub, right?

You may initially start with renewables. You may combine it with the remaining 85% of Point Beach. You could bring in a gas solution as part of it. That's exactly what we're talking about with data center hubs. You start with 1 gigawatts to get them up and running. Remember, why 1 gigawatt? One gigawatt because the hyperscaler wants that first phase in place, so they can go sign up customers for their cloud capacity. And then it takes them time to be able to expand for maybe a 1,000 acre campus that has 1 gigawatt of compute capacity to a 5,000-acre campus that has 5 gigawatts of compute capacity. But that 5 gig of compute capacity comes with 6 gigs of generation upside opportunity. So we grow along with them as they're acquiring more customers to sign up for cloud capacity, we're going side by side and building out the energy infrastructure required to do it.

Dave Arcaro?

Dave Arcaro with Morgan Stanley. I was wondering if you could maybe elaborate on how you're serving data centers with battery storage. We've heard a couple of applications if data centers could be flexible and disconnect from the grid and use batteries is kind of a peaking option there or even load leveling to handle the spikes in data center power use. Wondering if that's an application. I didn't see too much detail on it in your presentation, but could that be...

Yes, absolutely. They actually -- I'm not going to give the name of one of the ones that we talked about on here because I can't for confidential reasons. But it's actually an enabling factor on one of those transactions because what happens is when you have a hyperscaler, right? The first thing that they're trying to do to get that initial phase built, right? That one gigawatt. They need to load interconnect, right? And the LSE is saying, look, you have two choices, get in a long line like 4 to 7 years to get a load interconnect done, because I'm going to have to go figure out how to build the generation or bring your own generation solution.

You bring your own generation solution, I'll throw you to the front of the line, right? And batteries is a way to do that. So we do with the hyperscaler. We say, look, let's figure out a battery storage solution that can actually help us jump the line, get a load interconnect immediately, so we can work on those additional phase build-outs. But what's really interesting, David, for us is that don't just limit your thinking the batteries. Batteries is one way to do it. We could do it with wind. We can do it with solar, aeroderivatives, recip engines. Another way we're doing it is the customer supply business. For example, we're able to go out and do a firm and shape 3-year product or a 5-year product that can accommodate the load interconnect to get these data centers off the ground.

I'll hit you with even another one. Our transmission business, there are pockets of the country. We already have a couple of deals in the pipeline right now that are part of that -- those 20 data center hubs that we talked about, where transmission solutions. So if we go to GridLiance, right, and GridLiance can say, "Hey, I have an idea. We've been able to use our tools and we can free up a gigawatt of transmission capacity that didn't exist there with an upgrade." Maybe it's a transmission solution. Maybe it's just a battery that's being used as a grid solution as well. But we can use our transmission business also to free up that initial gigawatts. So when it comes to bridge power solutions, we can cover the waterfront. And that's what is so unusual about the platform that we have and one of the huge benefits of being part of every aspect of the energy value chain.

And David, I think you were also asking, when you have a load that can now change its needs in a very short amount of time. And since there's one large load that can actually change what the grid needs. How do you have generation stores that can match that. And batteries obviously provide that in space because they are the quickest to move. And so therefore, if you did have significant fluctuations on your data center and what it did in terms of what its need of load were, you could match that with a battery is another application that we're seeing people really look at as something that they need.

Jeremy Tonet at JPMorgan. Thank you for all the details today. Just want to come back to the guidance. And clearly, 10-year guidance is very impressive, very few in the space. We're able to do that. I want to focus maybe a little bit more on the front end of that 8% plus as you outlined there. And just curious, I guess, recently, you've been able to achieve numbers higher than that 10%, a bit over 10%. So maybe digging into that plus a little bit more. Is there anything that holds you back from kind of hitting the levels that you have recently? What could that 8% plus look like?

Yes. I'm going to start, Mike, and then I'll turn it over to you. But I look at it very simply. You look at our track record, first of all, and I think it speaks for itself. I mean we've got last decade, over 10%, you go back 20 years, similar numbers. And the forecast that we've been able to build to put together, and like I said, we spent a lot of time on this going through the 10-year forecast is built around 8% plus, plus, right? And then you have to turn your attention to the -- all the upside opportunities that we have and that we've always been able to find as a company. And so when you think about -- I'll just take the renewable business, if we're able to do better, right, improve the market share that we have in the renewable business that based on what's in those slides, all the storage opportunities with 190 gigawatt pipeline, having large load for the first time ever in Florida, having the rate case outcome that we had with the top end 11.95% ROE, and then you move on to the Energy Resources side of the business, the data center hub strategy for example, right?

Just going -- we said 15 to 35 somewhat conservative. We're really shooting for that 15 by 35. That 15 by 35 is upside. A lot of that comes with gas. Mike gave you the numbers, $60 billion to $90 billion of CapEx, if we just hit or do a little bit better on the gas forecast that we've laid out for you, combined with being able to go from 15 to 35 on that data center hub strategy. So so many different ways for us to be able to accomplish what we've set out to do. And that plus is there for reason. Mike, anything you'd like to add to that?

No, I'd just say this is a management team that looks to outperform each and every day. But if you look at everything we put together, we are talking about investing today for the 12 ways to grow in 2028 plus. And if you look across each and every one of those large loaded FPL, Scott told you 2028 plus. We went through the transmission side at NextEra Energy Transmission. And if you look at when those reach COD, MARL 2031, you see our partnership with Exelon for 2031. When we talk about our large load and the like, you see 4 to 8 gigawatts in the 2030 time period. We are building a company that is built for long-term financial success. And when you look at where those upsides should come and when they really come together, they create the full value and the power of this platform, it really is as those 3 ways to grow, move to 12.

And get ready. I mean, like I said before, those announcements we put up today, it's like 2 quarters of work.

I think that's the other key piece...

Two quarters. Just think about what's to come.

Other key pieces you will get visibility into that growth earlier, right? Because we'll be winning the projects, we'll be having the analysis. We'll be having those definitive agreements. So we will be telling you because of the investment time period, well in advance of 2028 or '29 or 2030, what we're winning and how that translates into growth. So although the earnings growth can be when we have the 12 ways to grow, the knowledge of that, the knowing of that, the catalyst of that will be far earlier.

That's very helpful. If I could just ask a quick second one unrelated. As it relates to SMRs, just curious if there's any technology that has caught your eye so far? And what would you need to see to believe one of these technologies is commercially viable?

Yes. So we have done a lot of work on SMRs. I talked to a lot of you, I think, at EEI about this, Brian had a slide on as well. We started with 96 OEMs who claim to be SMR manufacturers or in the SMR business. We kind of called that down to 12. We've done a very deep technical and commercial dive on those 12. We've taken that down to 3. We're more focused on Gen 3 than Gen 4 right now, just for obvious reasons. I think it's just how far along they are in the technology and then also a lot of the Gen 4s rely more on a halo, which isn't quite there with the LEU fuel type.

So we're more focused on the Gen 3s. And what we're looking for ultimately is I like to say there's 4 wallets, right, that come to the table and building successfully an SMR project that's the OEM, it's the federal government. It's the counterparty, right? It would be a hyperscaler and it would ultimately be us as a developer, but I also haven't been shy in saying that, look, we're going to be smart about it, right? That's why we're going to do our homework on commercial and technical viability. And we're not going to take uncapped risk, right? We're going to be smart about capping our -- the financial exposure that we would have here. But if we could find the right opportunity, there is a lot of demand from the hyperscale community for them, and there could be a smart way to make these work. And that's why we're focused on it.

It's Bill Appicelli from UBS. Just a question on FPL. You talked about the large load growth opportunities. How much of that is embedded in the $90 billion to $100 billion of CapEx that you laid out today? And how much would sort of be upside?

Yes. So I'll call it the roughly 20 gigawatts of pipeline that I talked about. We have 6 gigawatts based into our expectations through 2032. So using the simple math I threw in there, think about that as about $12 billion of CapEx or a little more than 10% of our CapEx that we're going to spend through 2032.

Okay. And then following up, what should we assume or what's embedded in the plan for the earned return, right? So you've got the rate stabilization mechanism. So should we assume that you can achieve the high end throughout the forecast period?

I think you should think about it in the same way you looked at prior rate agreements, right? The rate stabilization mechanism was framed up instead of taking cash for really years 3 and 4. I highlighted REWIRE, and we are going to have to focus on improving the business and cost productivity, just like we have through momentum accelerate velocity. And so I think looking at our historical performance under multiyear settlement agreements is probably a good benchmark to think about how we'll perform going forward.

One other thing I want to make sure that you understand on the regulated side is that the power of the diversity of our platform. Because when you look at the Energy Resources regulatory businesses, they will grow capital employed by about $15 billion between now and 2032. That $15 billion is greater than the large load expectations included within FPL. So when you look across these different pieces, we have multiple ways to grow our regulatory capital employed and the large load at FPL becomes an upside that creates a real earnings power across the company.

Ryan Levine with Citi. Given the announcements this morning around Google and Meta, can you speak to how you're managing customer concentration risk as the hyperscale or data center market evolves?

Sure. I mean, first of all, we have amazing diversity across our portfolio. I think we put some of those...

And when you look across over 400 different off-takers or 400 different projects, over 300 different off-takers, the amount of diversity that we have amongst our assets is substantial. When we've looked across this, and I think this is a number of conversations we've had with all of the credit agencies, is that any one project is so minimal that it could -- we could remove that project and would not impact our corporate cash flows. So our broad set is that we are a very, very diverse set of cash flows that come to us.

Okay. And then in terms of your dividend policy, as you look out beyond the forecast time horizon, are you assuming that, that growth rate continues to be less than the EPS growth rate?

You will see that in our projections, you can do the math as a total there that it's roughly that 6% dividend per share growth rate. If you look at what our opportunity set is, we have an amazing opportunity to make accretive investments for our shareholders. And then we also look and say look at the significant upside potential that we have in new investments. And to be honest with you, we're making significant upside potential for new investments, that's going to come with equity. And so as we make those investments that drive earnings per share growth above 8% for our shareholders, we'd rather keep that dry powder and rather than growing our dividends per share at a higher amount to make sure that we can minimize the amount of equity needed to achieve any growth in our forecast.

Nick Campanella at Barclays. So just maybe sticking with the financing slide, the $115 million to $145 million of project level finance. Is that still leaning on traditional tax equity financing? Or are you kind of moving more towards project level financing or private credit? And then how does that kind of change as you get to the end of the decade and tax equity becomes less available?

I'd say a few things. One, at the asset level, like I said in our slides, we have probably the best access in the industry. The inbound calls that we receive from investors is significant. When I look at tax equity, there are a number of parties who we are their only customer. Why? Because they want it done right. So let's look at that total amount. It's going to be a mix of tax equity. It's going to be a mix of project debt and when applicable will also look at private capital. And as we look at one key questions to ask, is it available? And is it viable for NextEra. Answer to that is absolutely.

The second piece is, is this an area where you have a competitive advantage? And the answer to that is absolutely as well because -- I guess when we work with our partners, they know that our projects are resilient, that they stand the test of time and that they're high quality, and those parties want to invest with us. So we are essentially the first pig at the trough, if you will, in terms of receiving allocations in terms of working with investors, and they all want to work with us.

And then I guess, the asset recycling, you kind of moved the business to this all of the above kind of energy approach, but just are there -- is this about just selling down stakes in existing projects like many renewable developers do? Or are there specific businesses that you're targeting to kind of get out of?

No. I think, listen, when you are -- we have a $300 billion investment plan in -- as you look now through 2032. With a $300 billion investment plan, you're going to also be selling assets over time as you look in -- as you receive prices that may be better than what we see for our shareholders. And if someone is willing to pay us a price for an asset, that's higher than the value that we see for, we will sell. And so that's what kind of drove that. Is looking at historically how many times have we seen people look and say, "Hey, we love this asset and we're paying -- we want to pay more for you, more for it than you value it for." And when we have that, of course, we'll sell to create shareholder value. So that's really what that represents. It's not something that's saying, hey, we are targeting selling x, than at all.

One more on this, we'll move to that, Andrew.

Andrew Weisel with Scotiabank. First question on the 15 by 35. Is that starting from 0 today? Or does that include the 3.5 gigawatts with Google and 2.5 with Meta, if I got that right? And does that -- do you have specific line of sight into projects over the next few years? Or how much of that is stuff not yet under contract business to be won?

Yes. It's starting from 0. So we're not taking credit for all the wins we've already had. So we're starting from scratch. But we're not starting from scratch in that we've already been making a lot of headway on these deals. Brian talked about Google, for example, right? I mean, we spent a lot of time talking about the AI partnership today. The other part of that is there are 3 data center hubs that were announced today as well, right, with Google. That is part of the 15 by 35 initiative going forward for us, right, those 3 hubs.

Comstock, if we're successful there. Basin if we're successful there. So like I said, I mean, we're not taking credit for the stuff we've done in the past, but we already have a terrific head start now on that 15% by 35%. And if you add up those 3 deals I just went through and throw Exxon in the mix, we're pretty close to hitting the target already. So I feel pretty good about getting to 30 by 35, and that's where I'm pressing and holding the team accountable to deliver.

Great. And just a couple on the CAGR. Just to clarify, when you say based on '25, is that the original midpoint or the revised midpoint or where you ultimately end up, which like you said you're expecting the high end? And then I appreciate the 10 years of visibility that's great, that's unique. But just curious why have it broken into 2 phases? Are you trying to emphasize something specific about 2032? Is that a nod to the tax credits in 2030, which may or may not change? Why pose it as sort of 2 phases, even though it's the same number.

Here's what I would say is when you look at all the things we're doing, Comstock, Basin, Exxon, Google, the Excel announcement, MARL, the large load that Scott is having originations. And if you look at what that means from a growth driver those assets -- those investments come in '29, 2030, 2031. So we are originating and investing today for the '29, 2030, 2031 time period, which has given you the earnings growth through 2032. So for us, when we're talking about those expectations, those expectations are just like you totally looking at the next 3 years because that's the world we are living in today.

As we look at 2033, 2034, 2035, we're having conversations with those same investors. But those originations, those PPAs, those pieces will come into play in 2028, '29, 2030. So that's the real difference is through 2032, that is the time period we are focused our team on in terms of execution, origination investments today.

Yes. And the one thing I would add to what Mike said is we look at 33, 34 and 35, we feel really good about those years. We would never have given you a target. Had we not and the assumptions that underlie that 33, 34 to 35, they're identical to what we've been doing in the last 2 decades, there's nothing heroic in those assumptions at all. So I think my takeaway if I'm an investor is, "Hey, they felt really good about 33, 34 or 35, so good they gave us a target and the assumptions that underlie it are the same assumptions that underlie the rest of our financial plan.

And you also had a question on 2025. We are targeting the high end of our range, and our expectations are based on that target. So only the go-forward compound annual growth rate.

Nick Amicucci with Evercore ISI. I just wanted to touch upon too, because you guys had mentioned kind of the idea to get -- bring your own generation first and then the appetite, I guess, for the hyperscalers to actually ultimately be grid tied and act as kind of like a reliability resource. Just kind of any kind of context we could provide around that and kind of the timing around that?

Yes. I mean what's really interesting about the BYOG strategy. So if you take the national footprint, and I have the slide up there about co-ops and municipalities, the unregulated markets, the utilities, I'll take co-ops, for example, right? Look at what we've done with CIPCO around Duane Arnold. Look what we're doing with Basin around the 1.5 gigs we announced there on the gas project. We have 20 years of experience working with co-ops. Really a lot -- it's always been a big part of our market. Co-ops, just like utilities, they want to be part of the hyperscale conversation. Why? Because they want to be viewed as having brought economic investment and jobs to their service territories as well. And so one of the real interesting strategic opportunities that we have is to find a generation opportunity that could be a bring-your-own generation opportunity, take it to one of our co-op muni customers or maybe it's an unregulated part of the market like the Comstock opportunity where we're doing something behind the meter.

Maybe it's worked with one of our utilities where we say, hey, let's team up. We've got great hyperscale relationships at NextEra. What about if we brought that load to your service territory, we found a way to get a 50-50 win out of this, maybe some PPAs, maybe some BOTs. That's what we're talking about with BYOD. But if we do a behind-the-meter solution, there are some hyperscalers that are telling us right now. Look, we want -- we need to be up and running immediately. And so we can wait and afford to wait for the optionality that comes with becoming front of the meter.

And some are saying, they're okay with just behind the meter stand-alone, but most of them are going to want some path forward to take it a behind-the-meter solution, making it front of the meter, which we can do through the transmission solutions that we can bring to bear and the relationships that we always have with the LSE, right? I mean, the chances are that load service entity that we're trying to interconnect with, we've been working with for 20 years, given our national footprint. So that's what's really intriguing and unusual about the opportunity.

And just the only thing I'd add is I think you put in your comment, but these customers, we call them hyperscale, but they are -- they have different needs. They have different ones. They think about the world very differently. And so I think that's the power of the platform, right, because we can meet each of these customers where they are. And that's why we tried to walk you through the variety of examples that we're working on because you sit down with one and they'll say, listen, I want to be up. I want to be up quick. I don't care about being connected to the grid. Just give me as much as you can, as fast as you can. Whereas others will say, listen, I want to be on the grid. I want to take the time. The load ramp looks different. And so as you think about growing those hubs that we're picking up, we're not -- it's not just cookie-cutter, right? We are looking at different hubs that reflect our conversations with the hyperscalers.

And you get in this kind of virtuous cycle with hyperscalers, too, is because once you start to show them the ability to give them the solutions that meet their need. You get in a very different, much richer dialogue with them because then they start to say, oh, my gosh, you can -- let's see what else you've got that meets what I need, where we are in the country. And so I think what we're trying to give you a sense of with all those is. Listen, we're going to show you nuclear. We can show you carbon sequestration. You want to get them fast. We'll show you fast. You want to look at something in a different region, we can show you that. And I think that's what really -- the difference in the hyperscalers and our platform are just a really good match.

Great. And then, John, you had mentioned before, too, just kind of in passing that you're not really worried about turbine getting the turbines on the natural gas side. Just as we think about that because obviously, with Chevron Engine 1, we kind of saw a trading of those slot reservations. Is that kind of the current market contract where you could see some of those slot reservation shift? And do you guys then have kind of a preferential treatment because you're able to deploy things quickly and they're able to capture the LTSA agreement?

Yes. I mean there's -- I think there's probably two ways to look at it. One is that sure, there's always a secondary market for slot reservations where somebody went long and they have a project that doesn't materialize and somebody can swoop in and take that turbine off that person's hands. I mean, we've done that with solar panels and wind turbines and batteries throughout our history, definitely a way to do it, but we typically would expect to pick those up at a discount if we're going to do that.

The other point, though, is that I was trying to make is, I mean, your -- you all know about our close relationship with GE Vernova and Scott Strazik's team and just the overall buying power that we have across this complex. And so when NextEra needs equipment, and you're usually the supplier's largest customer in the world, which we typically are, whoever we're dealing with. I'm not going to take no for an answer. So they better figure out a way to make it happen.

We haven't had any problem getting a deal done for lack of equipment. Not at all. It's -- that's not a constraint for us in getting transactions taken care of.

We have time for 2 more -- we'll do 3. We'll do Michael, Ross and then Carly.

Michael Sullivan, Wolfe Research. I was just going to ask for a little more details on the Google JDA that you announced. Is this going to be more traditional where you're just supplying the power generation? Or are you involved on the data center side at all? And any more color on just time line for when it could come online and when it could be more formalized.

Yes. I mean, Michael, the way we're looking at these is that we have tremendous land capability, right? We're really in the models like we spent a lot of time talking about 360. Some of you probably know what that is. Some don't. We've shown it's a development day. It's a model like when we use it with a hyperscaler that's designed to think like they do like what do they care about? Water access, right, fiber latency, population density and then all the -- it combines all the things we care about, right, transmission congestion, pipeline access, wind resource, all those things come together to find the best site.

When we find the right site, there can be opportunities on the land side, where what we're typically doing with the land is we're telling the land team, look, don't only go tie up the generation site. Let's play the long game and go get the data center site too at the same time. Sometimes, the hyperscaler will say, look, I've already got my own site, I've got -- that I would prefer. But there's a lot of times where the hyperscalers coming back and saying, hey, I really like what's attractive about what you just showed me is not only the power solution, but that data center site based on your technology and the way you thought about it makes a lot of sense for me as well. And so the 2 could be an opportunity. We're not looking to build the data center itself, but we can come with the land for the data center. We can come -- obviously, we're coming with the land for the power generation.

And with the Google relationship, I mean, all the different pieces, right? You think about Duane Arnold, potential expansion opportunities off of that. You think about the joint development agreement where we're looking at multi-gigawatt opportunities for data center hubs, right, around the U.S. We're working on 3 right now, more to come behind that. The timing for those are, look, I mean we're going through the development process right now. I mean, we are trying to get those through that development process as quickly as we can to be able to turn them into transaction that both sides can move forward with. But it's not going to just stop with those 3. I mean we've got a lot behind it with them, and we work with all hyperscalers on that basis as well.

And that's the secret behind the data center hub strategy is putting a lot of thought into what land we're going to tie up, where, why, how and because it's got to solve a lot of different problems. Otherwise, all you're doing is wasting your time and their time -- and so our analytics really give us a leg up and find the 20% we already have. And again, like I said, I mean, we're expecting that to better be over 40% by the end of '26. It will be over 40% by the end of '26.

Great. And I'll try one more on the 8% plus EPS CAGR. So just as we roll through forward, is it possible that you can guide above that in an individual year? I know we only have ranges out to '26 right now. And then can you compound off of that?

Yes. I mean there's always -- look, we have a history of rebasing, right, throughout our history. I mean, so we always have the ability to do that going forward. But look, I mean, our plan is built not around 8%, right? Our plan is built around 8% plus. The plan we put together for you is an 8% plus plan, not an 8% plan, 8% plus. And then we have all these upside opportunities that we talked to you about as well. And then you're all well aware of the track record performance.

And Michael, like I said before, although we've talked about a lot of this coming together when our 12 ways to grow come together, the origination of that will occur earlier than when it appears in earnings. So the visibility that people will have in terms of what that -- how to quantify that plus will come earlier. It won't just be like we'll sit there in '29 or '28 and you'll just see an uplift. We will be known about that over the course of the next years as we originate as our strategy develops.

Just 2 more quickly, Ross?

Ross Fowler, Bank of America. Just going back to the natural gas opportunity that you've added to the backlog. As you're having discussions around these data center hubs with the hyperscalers, are you passing the fuel commodity costs through inside that long-term PPA? Or if it's on you to take that risk, what strategies are you using to hedge that out over the long term?

Yes. Listen, we're looking at toll type structures, right? We're not in the business of taking the commodity risk as we look at that. And so that's very similar in what we're doing in all our transactions that have fuel. So we'll look to own the operating risk. That's what we're in the business of doing and pass along the fuel risk.

And that's the area where customer supply then provides another unique place because now we pass that fuel risk on to the counterparty. That counterparty is not necessarily a fuel guy, if it's Google or Meta or any hyperscaler, they're not in the business of commodities. So we can go with them and then say, hey, here's how you can hedge your fuel risk. It's not risk that we're taking, but here's ways for you to hedge your fuel risk for the next year. So then they are looking at something that's far more like a fixed price contract, but it's not a risk that we are taking in our PPAs.

Carly Davenport, Goldman Sachs. You announced Symmetry today and highlighted M&A as a potential upside growth driver. Any color that you can provide in terms of what types of assets you might consider there and also the level of scale that you'd be willing to consider on the M&A front?

Yes. I mean you want to talk about Symmetry and then I'll talk about the...

Sure. I mean Symmetry was a transaction that made a lot of sense in light of our customer supply footprint. You saw how that expanded it out. It really was a nice extension of a business that we like a lot. And so if you think about the relative size of that business to the entire business, it's big but not really big relative to ours. And so we're always going to be on the look for -- listen, we'll look at project M&A if we can find the right opportunity or the right fit. We'll look at businesses that complement existing businesses. And so that's the question earlier was about asset recycling. I mean we look at -- we're an investor on our side of the business. Everything is for sale, but we're always looking for opportunities to put capital to work, and that's what we're going to do. We're going to deploy hundreds of billions of dollars of capital, largely in organic growth. But if we see an attractive M&A opportunity that fits in nicely, that adds to our story, we're absolutely going to do it.

Same way, we're going to -- if we see someone who wants to -- who is a better owner of some of our assets, and that's accretive to what we're trying to achieve, we're going to do that, too, right? So we're always looking and always thinking about what are the opportunities to both buy and to sell assets on my side of the business.

Yes. And I think, too, just going -- hitting Symmetry one more time, too. You saw the map that Brian put up on the Board with the AMA positions that Symmetry has. I mean it's -- when you think about that strategically, just think about the customer relationships and the market knowledge that comes that will help our gas pipeline business and that will help our large load decision-making around where to locate new opportunities and how that can help facilitate large load opportunities. And so very strategic for us as well, fits very well within the business model that we're moving forward with.

And on the project M&A side, we're in every part of the energy value chain. So I'm not going to narrow it down to one specific area. If it drives value for shareholders, and we can leverage the scale and the technology and all the capabilities that we have to really drive value and it can move the needle, we're going to take a look at it. And renewables, I may point out just as one example. I mean there are a lot of folks in the renewable space that haven't safe harbored credits, haven't safe harbored for fiat compliance, haven't taken the steps we have around supply chain, maybe don't -- are short on transformers, don't have electric switchgear, don't have a way to get projects online.

Brian showed the slide about how we expect some of the competition to actually decline because of those things. It's not only that will the competition decline because of some of those things, we'll probably also see developers who didn't plan ahead, sell assets. And those could create real buying opportunities for us, too, that aren't even, of course, in our base plan that can move the needle. Same thing on the storage side. Same thing across the board across technologies for us. So that's something that we can always consider and always evaluate and Mark Hickson and his team is constantly looking at those opportunities.

Awesome. And then just on the balance sheet, should we assume that the 18% FFO to debt target you have for '25 that, that holds through 2032? Or just how should we think about any ebbs and flows to that metric over the course of the plan?

Yes. Listen, we've made commitments to all of our agencies and at 18% at S&P, we have Gabe sitting in the middle back there. We are maintaining our commitment to 18% year in and year out through 2032. It's not going to be at 18% now and down to 16% and then begging Gabe for forgiveness. No, we will be at 18% through 2032. And you've also seen that Moody's recently had their publication where now rather than having a look-through for a nonrecourse debt, they have established 2 parameters. One, a 17% CFO to total debt, which gives off credit treatment for nonrecourse debt. And secondly, a 14% consolidated cash flows from operations to total debt. We need to meet both. And we will meet both now through 2032 without deviation.

Well, thank you. This concludes the 2025 NextEra Energy Investor Conference. Thank you for taking the time to join us in person this morning, and thank you for everyone who joined us on the WebEx. Have a great rest of the day.

Good day, and welcome to NextEra Energy, Inc. Q3 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.

Thank you, Steve. Good morning, everyone, and thank you for joining our third quarter 2025 financial results conference call for NextEra Energy.

With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunne, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, President and Chief Executive Officer of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy.

John will start with opening remarks and then Mike will provide an overview of our third quarter results. Our executive team will then be available to answer your questions.

We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our -- are incorrect or because of other factors discussed in today's earnings news release and the comments made during this conference call and the Risk Factors section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission. each of which can be found on our website, www.nexteraenergy.com. We do not undertake any duty to update any forward-looking statements.

Today's presentation also includes references to non-GAAP financial measures. Please refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure.

With that, I'll turn the call over to John.

Thanks, Mark, and good morning, everyone. NextEra Energy delivered strong third quarter results with adjusted earnings per share increasing 9.7% year-over-year. In addition, through the first 9 months of the year, our adjusted earnings per share has increased 9.3% year-over-year. The continued strong financial and operational performance at both FPL and Energy Resources positions our company well to meet its overall objectives for the year.

America is in a golden age of power demand. The country needs more electricity than ever. New electrons can't get on the grid fast enough. NextEra Energy is uniquely positioned to help lead this pivotable moment for our sector. We develop, build and operate all forms of energy infrastructure. At our core, we're a development company. We have a world-class platform that enables us to quickly build low-cost generation in electric and gas transmission. We're not just recontracting around existing assets. We're also building new energy infrastructure needed to power America. Our 2 world-class companies, Florida Power & Light Company and NextEra Energy Resources are the perfect complement to 1 another. Day in and day out, we are powering today and building tomorrow.

Importantly, we are in a terrific position to continue delivering near-term and long-term value to our customers and shareholders. As we discussed with you earlier this month, our long-term earnings growth drivers are extensive, both inside and outside Florida. Simply put, we have many ways to grow across our platform, both this decade and the next. We are excited to discuss this in much more in greater detail with you at our investor conference on December 8.

The Florida economy continues to see significant economic growth and Florida Power & Light Company continues to make smart long-term investments to serve that growth while keeping bills low and reliability high. We put our customers first and the results speak for themselves. FPL customers experienced top decile reliability that's nearly 60% better than the national average. -- and typical FPL residential bills are 20% lower than they were 20 years ago when adjusted for inflation. And that's not by accident. FPL's nonfuel O&M costs are 70% lower than national average and over 50% lower than second best in our industry. And approximately 90% of FPL's power generation comes from the nation's largest gas-fired fleet and 4 nuclear units.

This baseload powers the backbone of our system, giving us the flexibility to meet our customers' needs with the lowest cost forms of energy right now, solar and storage. Remember, a robust gas and nuclear fleet means we don't necessarily need nighttime electrons. We need more low-cost electrons to meet our daytime peak, which is why solar and storage are the perfect complement and choice for FPL system and customers today.

FPL is also preparing for the future, which will require even [Audio Gap] 5.3 gigawatts in solar, 3.4 gigawatts in battery storage and a gas peaker plant that is pending regulatory approvals. We look forward to continuing the successful multi-decade approach of adding low-cost generation to meet Florida's growing need for power, while also increasing reliability and keeping customer bills low. This approach is at the heart of our new 4-year rate proposal. As a reminder, on February 28, we initiated FPL's 2025 base rate proceeding for new rates effective in January 2026.

We reached a proposed settlement agreement in August with most of the interveners in the proceeding, reflecting a broad set of constituents across our customer base. The 4-year proposed agreement would provide an allowed midpoint regulatory return on equity of 10.95%, with a range of 9.95% to 11.95%. There would be no change to FPL's equity ratio of 59.6%. The proposed agreement also includes a rate stabilization mechanism similar to what we filed in February. The proposed settlement also includes 2 new large low tariffs that are designed to ensure large load customers pay for the incremental generation needed to serve them.

We believe the proposed settlement is fair, balanced and constructive and supports our continued ability to provide highly reliable, low-cost service for our customers through the end of the decade. If the proposed agreement is approved, typical residential customer bills would increase only about 2% annually between 2025 and 2029. This means bills would remain well below the current national average, providing our customers with the economic certainty that comes from a 4-year rate agreement. We completed evidentiary hearings earlier this month and expect the Florida Public Service Commission to provide a final decision on the proposed settlement agreement on November 20.

This summer, we received a constructive outcome on federal tax credits, providing policy certainty for our renewables build at Energy Resources. We expect to receive tax credits for our renewable development plan through 2030, while our suppliers are positioned to be FIAC compliant. We've also been able to reduce development risk for a large part of our planned build, that's because Energy Resources has approximately 1.5x coverage of the project inventory required to support its development expectations through 2030. This provides us the runway we need to continue delivering low-cost power solutions to our customers, who need power today and tomorrow.

Renewables are just the start. We also plan on delivering power through battery storage, gas-fired generation and nuclear. Over the second and third quarters alone, we have originated 2.8 gigawatts of new battery storage opportunities as we continue to grow the world's leading storage business backed by domestic supply base with batteries made in America. We're also leading the much-needed development of linear transmission infrastructure, both electric and gas, and our customer supply businesses proven integral to serving data center customers. We're tying it all together through our AI-driven world-class development platform and decades of experience. And we are doing it at a time when the combination of development capabilities and a strong balance sheet are more important than ever. It's why we are ideally positioned to work with hyperscalers who are increasingly looking to power their business by bridging -- by bringing their own generation.

We are unique, in that we combine a national footprint, a strong balance sheet, supply chain capabilities and experience in building all forms of generation and transmission, together with unmatched customer relationships and an industry-leading team on a development platform, second to none. And that's what we believe it takes to serve this new customer class, which is investing tens of billions of dollars per project. Hyperscalers, data center operators and load serving entities continue to tell us they need solutions for large load today and tomorrow to address growing energy demand across America.

As a leader in serving this demand, I am pleased to announce that we have entered into a 25-year power purchase agreement with Google that pending regulatory approvals enables us to recommission our Duane Arnold Energy Center Nuclear Plant in Palo, Iowa just outside of Cedar. The 615-megawatt plant is just the beginning and will help power Google's growing cloud and AI infrastructure in Iowa once it returns to operation, which we expect to occur no later than the first quarter of 2029 and perhaps as early as the fourth quarter of 2028.

Duane Arnold shut down in August 2020 after safely and reliably serving Eastern Iowa for decades. And because we carefully and methodically went through the decommissioning process, we have confidence in the investment required to restart it. During our evaluation of recommissioning Duane Arnold, we collaborated closely with the plant's minority owners, Central Iowa Power Cooperative known as CIPCO, which provides power to the local community, and Corn Belt Power Cooperative. As part of that collaboration, CIPCO will purchase 50 megawatts of the plant's output on terms and conditions consistent with the Google PPA. And we have signed definitive agreements to acquire CIPCO and Corn Belts combined 30% interest in the plant, which will bring our ownership to 100%.

Restarting Duane Arnold marks an important milestone for NextEra Energy. Our partnership with Google not only brings nuclear energy back to Iowa, it also accelerates the development of next-generation nuclear technology. With the support of the Trump administration, Google and NextEra Energy are creating more than 1,600 jobs and adding more than $9 billion of local economy, creating a win for the U.S., a win for both companies and a win for Iowa.

As a demonstration of the pride of working at Duane Arnold and for NextEra Energy, a significant number of Duane Arnold's previous workforce are looking to return to work at the facility. And our team working to recommission Duane Arnold includes many of the same employees, who decommissioned the plant 5 years ago. Beyond the nuclear plant, we have ample land available to provide additional power and capacity solutions, including battery storage to support data center build and potential future expansion.

As part of the agreement, NextEra Energy and Google have also signed an agreement to explore the development of advance nuclear generation to be deployed in the U.S., which will help power America's growing electricity needs. Of course, to move that forward, we'll be certain to appropriately mitigate and limit our financial exposure as new nuclear technologies continue to advance. We expect Duane Arnold will be eligible for nuclear production tax credit with a 10% energy community bonus. And once restarted, we expect Duane Arnold to contribute at the same -- data center hubs we are developing across the country.

When you put it all together, our opportunity set is not contained to a single utility service. Bottomline, we have many ways to grow, and we remain well positioned not just for the rest of the decade, but into the next decade as well. We look forward to sharing many more details with you in December.

With that, I'll turn the call over to Mike to walk you through detailed results from the quarter.

Thank you, John, and good morning, everyone. For the third quarter of 2025, FPL's earnings per share increased by $0.08 year-over-year. The principal driver of this performance was FPL's regulatory capital employed growth of approximately 8% year-over-year. FPL's capital expenditures were approximately $2.5 billion for the quarter, and we expect FPLs -- full year capital investments to be between $9.3 billion and $9.8 billion. For the 12 months ending September 2025, FPL's reported return on equity for regulatory purposes will be approximately 11.7%. During the third quarter, we reversed approximately $218 million of reserve amortization, leaving FPL with a balance of roughly $473 million.

Looking forward, we expect to use a portion of the remaining reserve amortization balance for the remainder of the year. FPL's third quarter retail sales decreased 1.8% from the prior year comparable period due to milder weather. On a weather-normalized basis, from the prior year comparable period, retail sales increased by 1.9% due to an increase in customer growth and underlying usage.

Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 13% year-over-year. At Energy Resources, adjusted earnings per share increased by $0.06 year-over-year. Contributions from new investments increased $0.09 per share, primarily driven by continued growth in our renewables portfolio. Contributions from our existing clean energy portfolio remained unchanged year-over-year despite weaker wind resource due to better performance at our nuclear fleet. Wind resource for the third quarter of 2025 was approximately 90% of the long-term average versus 93% in the third quarter of 2024. The comparative contribution from our customer supply business increased by $0.06 per share, primarily driven by timing origination activity during the quarter.

All other impacts decreased by $0.09 per share, driven by asset recycling during the third quarter last year as well as higher financing costs, mostly related to borrowing costs to support our new investments. Energy Resources had a strong quarter of new renewables and storage origination, adding 3 gigawatts to the backlog. With these additions, our backlog now totals nearly 30 gigawatts after taking into account more than 1.7 gigawatts of new projects placed into service since our last earnings call. We expect that backlog additions will go into service over the next few years and into 2029. This marks the sixth consecutive quarter that Energy Resources has added -- three or more gigawatts to its backlog.

We continue to see strong customer demand for ready now capacity solutions as we had our strongest quarter ever. From 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted earnings per share compound annual growth rate range. And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base. As always, our expectations assume our caveats.

This concludes our prepared remarks. And with that, we will open the line for questions.

[Operator Instructions] The first question comes from Steve Fleishman with Wolfe Research.

Congrats on Duane Arnold news. Maybe just on that topic, John, can you give us any sense on what the cost of restart might be and also the buy-in price of the 30% that you're buying in Duane Arnold?

Yes. Thanks, Steve. Appreciate the question. So first of all, just the sensitivities, we're not going to go into the CapEx number on the call. But needless to say, we feel very good about our ability to build this -- to recommission Duane very efficiently. The plant is in great shape. As I said before, the team that will be doing the -- commission, the same team that did the decommissioning, I've been out there recently, toured the facility. It's in good shape. So we'll provide more details on that as we move forward.

On your second question on the 30% buyout of CIPCO and Corn Belt, it's really pretty straightforward. I mean that buyout was done in exchange for us assuming their decommissioning liability. It's pretty much that straightforward. And from our standpoint, we have more than ample decommissioning funds that had already been set aside. So I think it's attractive for us. I think it's attractive for CIPCO and Corn belt as well, win-win for all parties involved.

Okay. And then one other question, different topic. Just -- it was great to see another 3 gigawatt quarter ad, but there was a gigawatt removed from the backlog. Could you maybe just talk about that 1 gigawatt removal and what's driving that?

Yes, absolutely, Steve. This is pretty straightforward. So as you said, we added 3 gigawatts. I mean another really strong quarter of origination. And we are just seeing a lot of demand for renewables and storage in the market. And remember, so out of that 3 gigawatts, we put 1.7 gigawatts into service in the quarter. And really, I think what you're referencing is the 900 megawatts. Let me just break that down. So we removed 650 megawatts from backlog, which was pretty conservative by us, I think you know we're pretty conservative on how we manage the backlog. We did that for various development reasons. And this is really on some smaller projects that are -- we are really -- that we're continuing to manage as we move forward.

I think we're going to get it all back in '26 and '27 on that 650 megawatts. So it will just come a little bit later. And then there was another $250 million megawatts that we just had a little bit of a permitting delay on. So we're just shifting that from 25% to 26%. And when you put that 900 megawatts together, it's what, call it -- of the backlog, but feel good about getting all of that back. It just comes a little bit later in time. Otherwise, had you included that, we would have been at the bottom of the 24-25 range. And I think as investors saw, we've reaffirmed our expectations through '27, including the fact we'd be disappointed not to be at the high and in the range. And so these moves really just don't have any impact on our ability to meet our financial expectations that we've communicated to investors.

And as you look out, a lot of positives to see in the backlog. I mean, 28 and beyond are shaping up unbelievably well. We just got a great histo on those years. So overall, we're really, really good shape where we sit now, and I have no concerns about where the backlog sits and it's as strong as it's ever been.

The next question comes from the line of Shar -- with Wells Fargo.

John, I just -- I know you kind of mentioned to Steve, you want to get into the actual CapEx numbers of Duane Arnold, but let me try to maybe ask it a little bit differently and just get into the qualitative part of the plan. I know there's obviously a bogey of $1.6 billion for a Pennsylvania plant that's kind of under budget now. You kind of mentioned that this current plant is in good shape. Can you just maybe directionally talk about what you're seeing with that plant and how we should view it without going into the numbers?

Yes. Thanks, Shar, welcome back, by the way. Yes. Yes. It's great to hear from you. So sure. I mean, I'll just kind of without going into the numbers, again, we spent a lot of time going through Duane Arnold, a lot of diligence and -- I'm going to go back to what I said before, having the same team that did the decommissioning, leading the recommissioning is an enormous advantage because folks know exactly what was done. And so the plan that we have, we have a lot of certainty around, right? And so I think the scope is pretty well defined. And we know what needs to be done.

The facility is, like I said, in a really good shape. I mean when I went through it, it was like we just kind of put a lock on the door and got the keys out and open the lock back up, and then we're going back through it. And there's obviously some things -- some work that has to be done to bring the plant back online. But the plant is in good shape. And we feel very good about our ability to execute against what's in front of us.

Fantastic. And then, John, just 1 last 1 is just, I guess, given the lack of additional nuclear sites to kind of repower for you guys, do you see kind of the next wave of deals moving to CCGT for Ag resources? Are you seeing demand there, especially given the partnership you have with GE .

Yes. Thanks, Shar. So we have many ways to grow, which we talked about a month ago. And I'll talk more about those in a minute. But one of those ways to grow is through new gas-fired technology. Nobody has built more gas-fired generation in this country in the last 20 years than NextEra has. And so we've got a lot of experience at it. And we're really a natural to get back into that area because of our development platform, it's so easy for us to take what we already have in terms of land agents, permitting all the supply chain capability that we have. You mentioned the partnership that we have with GE, and the strong relationship that we have there, the customer relationships, all the things that go with that development platform, it's easy for us to pivot into gas.

And I've said before, we have roughly a 20 gigawatt pipeline already developed because of that development platform and the efficiency that's built into it. And we're excited about what we're seeing on the combined cycle side and some of the opportunities that we have. And we'll talk more about this in December, but a unique advantage that we have is because it takes a little longer time to build gas-fired generation, call it, 4, 5, 6 years, a huge leg up that we have that we haven't talked as much about. And again, we'll focus on this in December, is all the renewables and storage that we have. And so when data centers want to get online now and quickly, and they want to secure a load interconnect by bringing their own generation, we can accommodate that because we have the solar in the storage that's ready to go and then the gas can come behind it. So we're in a bit of a unique position there in terms of our ability to really kind of hook and anchor data center build-out as we position our portfolio for these larger scale data center build-outs, we call it data center hubs that can be followed on by gas, maybe SMR technology going back to the collaboration nationally that we have with Google. So just a lot to be excited about.

The next question comes from the line of Nicholas Campanella with Barclays.

Thanks for all the updates. I just wanted to ask, going back on nuclear, there's a lot of momentum right now for AP1000. And just curious what your appetite would be in participating in something like that? Or in terms of new nuclear, should we be solely kind of focused on SMR and restarts of current large-scale plants?

Yes. I think for us right now, I mean, we have Duane Arnold that we talked about. We have Point Beach, we have Seabrook, we have we'll be turning our attention to those 2 facilities as we optimize. But one thing that's really exciting is that we probably have 6 gigawatts of SMR capacity across those 3 sites, not to mention back to the development platform, and we are a nationwide development company, right, that has a national footprint. So we also are looking at greenfield as well going back to that anchor point around having existing generation ready to go that can accommodate Phase I, II, 3 of a data center build-out as we wait for gas-fired generation to come or SMR technology to come behind that. And we're doing a lot of work around SMR, so we'll talk more about in December.

But I also want to go back to what I said about SMRs, which is that we're going to be very disciplined in our capital allocation strategy and making sure that we have the right commercial and financial structure where we limit any financial exposure that we have as we invest in those facilities. But when you think about NextEra, I mean we're really unique because the hyperscaler is investing tens of billions of dollars. This is not like the business 4 or 5 years ago, competing against a lot of small developers, they can't do this, right? The folks that can do this are large-scale developers like next era that have a strong balance sheet, a track record, the credibility to be able to match what the hyperscaler needs and the ability to build across generation types, whether it's renewables, whether it's storage, whether it's gas, whether it's nuclear, whether we need to bring a transmission solution to bear, whether we need to build a gas pipeline lateral to enable a gas build-out.

I mean all the things that we bring to the table are pretty unique. And again, combined with that large balance sheet, the team and the customer relationships and the ability to secure load interconnects and work with utilities and co-ops and municipalities. And that really kind of puts us in a pretty small group of folks. And so as we look at the market really, I think -- I look at the DOE letter that was sent recently over to FERC and more of a focus on bring your own generation. I mean I think that's just absolutely placed all of our strengths and advantages, and it's -- the future is exciting.

That's great. I really appreciate that. Good points. And I know that you've been doing this 6% to 8% outlook for a long time. You've basically been beating that every year. And you look at some other premium companies out there now doing 7 to 9 what's your philosophy and how you're thinking about long-term growth? And is that a consideration at all as we are thinking about what could be out there on the Analyst Day?

All great questions, and we'll address those on December 8. Have a great day.

The next question comes from the line of Julien Dumoulin-Smith with Jefferies.

Congratulations, Steve. Good to hear from you. Look, I just wanted to follow up on a couple of things here. First, with respect to the gas and contracted gas strategy, can you speak a little bit to what you're expecting or what you -- what success you've had thus far? I know this may be digging a little bit into the December update. But to the extent possible, can you discuss a little bit of the latest progress? And should we expect more of these hyperscale type announcements like Google, but to be parlayed back in the contracted gas? And is there a cadence that you'd care to share as you think about this ramps up? I mean I know it's early days in that longer-dated 2030-plus time frame. But how would you begin to characterize that opportunity as it stands today?

Yes. So a lot in the hopper is how I would describe it, Julien. A lot of different things that we are working on. And I mentioned our data center hub strategy, which I don't want to spend too much time on today because, again, we're going to get into that in December, obviously, building out combined cycle units is a big part of that. We think the things that we have in front of us are attractive across the class of hyperscalers that we see. We think the position that we have around our existing renewable portfolio is an enticing way to secure an early-stage load interconnect as the gas comes later. And so the ability to provide gas with renewables and storage or with SMR technology, the ability to build out the infrastructure necessary to accommodate all that, whether it's transmission, whether it's gas pipelines. I think all plays to our strengths and our advantages, together with the supply chain capability that we have.

And so in terms of cadence, look, we look forward to kind of laying this out for you guys in December, but I feel really good about the competitive positioning that we have today. Because again, I go back to the fact that -- there are very few folks that can actually garner the trust, the confidence, the balance sheet, all the things that you saw with the partnership that we have with Google, that we're having a lot of success with other hyperscalers as well that looks promising for our future. So more to come.

Excellent. I appreciate it. And then related here, just to elaborate a little bit further on that net originations discussion here. Can you elaborate a little bit? I mean, obviously, there's been some media attention around ESMrELdA and Jackalope, for instance. Can you speak a little bit how that fits in? Were they in your backlog or the position? I mean just trying to juxtapose the broader media conversation, which isn't particularly articulate about this versus what we're seeing in the quarterly update?

Yes, absolutely. So as Mirela, it's just a development project. It was not in our backlog. It was a development project for the future. on BLM land. I think the BLM was actually pretty clear that while they were not looking to permit this as 1 large project, they were going to entertain applications around individual projects. But remember, we have a massive pipeline, right? So this was just 1 piece of it. We spent no money on ESMrELdA. It's a project in development that we could develop some day down the road. So really, there's really nothing to see there. And then on Jackalope, that project we'll extend out a little bit more. We continue to work with the customer there, and we'll see what happens. But I mean, again, that's just one small project in the grand scheme of things for a massive backlog that we have.

And again, don't forget, I mean that's why we have 1.5x coverage on our inventory. I don't worry about it at all. We can easily draw from other projects in our pipeline to be able to satisfy customer needs as we go forward. And that puts us in an incredibly good position.

The next question comes from the line of Carly Davenport with Goldman Sachs.

Maybe just another quick follow-up on the backlog. A lot of the additions this quarter coming beyond the 2027 time frame. So just as we think about that potential pull forward in demand related to the tax credits rolling off that you all have referred to, is that strictly a 2028 plus opportunity? Or is there any opportunity to see that impact '26, '27 as well?

Yes. I think the pull forward of demand, Carly, I think it just escalates as you get closer to 2030. So you just continue to see step-ups there. And so for '26 and '27, we feel very good about where we sit right now. I think we've got more quarters to go in terms of filling the '27 piece. But again, we look at our financial plan for '26 and '27 in good shape. And what I'm really focused on is that '28, '29, '30 because there's just so many opportunities as you look to the back end of that decade and that natural pull forward that you mentioned that we've seen historically where we could see a lot of customer demand not only in '28, but in '29 and '30, and we're so well positioned around FIAC and around our safe harbor position. I think we have some very unique competitive advantages that we will highlight and spend more time on in December.

So as I look at the pipeline shaping up around 30 gigs -- and the way it's shaping up by year, I feel very good about where we sit.

Great. And then maybe just back on Duane oral. The $0.16 of average accretion that you mentioned in the first 10 years of the PPA, is there any color that you can provide on the cadence or if there's significant variability year-to-year that we should be thinking about?

There is not significant variability year-to-year. The reason we said that is remember, there's refueling outages for nuclear. And then refueling years, it's not that significant of an impact. But it moves around a little bit around refueling outages. So that's why we use that language.

Next question comes from Will Appicelli with UBS.

Just going back to follow up on Carly's question around the pull forward and just maybe you can speak to the development capabilities, right? You've sort of been averaging around this around 3 gigs a quarter and the low end of that. where can that go potentially in terms of just from a capability, supply chain perspective?

Well, we're really well positioned on our -- not only on our supply chain and the things we've been able to do around batteries and the supply chain positioning we have around the rest of the parts and equipment that we plan to the purchase. You guys know well. I mean transformers, electric switch gear, other parts of the supply chain. I mean, I think that's going to create a natural competitive advantage, which goes with having a strong balance sheet and a world-class supply chain capability as we go into '28, '29, '30, that uniquely positions us for the opportunity that could come there, right, which -- because we can do some things that others can't.

So I feel very good about -- and if you look historically on pull forward years, we have fared very well on a market share basis compared to our competition there. And also as we start thinking about being able to not only do what I call kind of the bread and butter business around origination, but then also adding on being able to fold in renewables and storage into large load solutions. As I've mentioned a couple of times on this call, I mean it's really an incremental opportunity that we haven't had before as you think about serving that large load customer. So the demand pull forward is something that we're obviously very focused on and have positioned the business around, and I think we're going to be uniquely capable and positioned to capitalize on the opportunity it's going to bring.

Great. And then just shifting gears on -- at FPL, the large load growth, I guess how was the valuation of that going? I think you've talked about maybe 3 gigs of initial sites or capability. I'm sure you'll speak more to this in December, but any color there around tariff structure or sort of the work and the conversations around bringing those customers in?

Yes. I'll turn that over to Armando.

All right. Thank you. So we've got a couple of tariffs that are up for approval at the commission that we are going to hear about on November 20. Regardless of that, we've had folks that have been pinging us all year. on availability of getting onto our system, when can they get on to our system and so on. So we are no different at Florida Power & Light than many of the utilities that you guys follow around the nation. These hyperscalers and these data center operators are looking to figure out where they can plug in and how quickly they can plug in. I think what John and Mike Dunne had mentioned before is that this is a potential opportunity at FPL later this decade. And I think for now, that's right. That could certainly change. but we are spending a lot of time doing engineering studies for everyone that you could imagine. And we hope that the environment here in Florida is one that the hyperscalers and data center operators will come to embrace. I mean, why not? We've got a great system at a low cost. So we feel really good about it.

The next question comes from the line of David Arcaro with Morgan Stanley.

I was wondering if you could talk about how renewables are interacting with data centers, especially over the next couple of years for projects that you've been working on. I was curious if there's any percentage of that you find are typically covered by renewables when you're powering data centers? Are you seeing any co-location opportunities? And how does battery storage get involved. So curious if you could give kind of a sense of the typical relationship or design that you're seeing there?

Yes, David, what we're seeing there is data centers want to get going immediately, right? And so they want to build out the initial phases of their campus, which could be -- end up being 1,000 to 3,000, 4,000, 5,000 acre campuses, every 1,000 acres is about 1 gigawatt of capacity. But -- as they think about permitting and constructing their facility, I mean, the first thing they're looking for is a load interconnect. And a lot of parts of the country in securing a load interconnect, you've got to bring your own generation. And so what's unique, I think, about what we can do around renewables is we can get them over the hump over those first few years of being able to identify a site being able to identify a generation solution that's sufficient to get them that load interconnect, whether it's through a combination of renewables or renewables and battery storage. We've seen that in a number of places.

We've also seen the ability to leverage like grid line where we can do upgrades on a system that can actually free up additional megawatts needed to secure that initial load interconnect. But that's the key. You got to get the load interconnect to be able to take the power off the grid to be able to satisfy the initial phases. And many of the load serving entities are saying, well, bring your own generation to make that happen, and we're able to do that with renewables with storage with grid lines and then the plan is to bring the base load generation behind it. And so when you can combine a comprehensive solution for the hyperscale or that's what they're looking for and a trusted partner that they know can get it done over time, and we can grow right alongside with them as they're expanding their existing facility.

Got it. Makes sense. That's helpful. And I was wondering if you could talk about what you're seeing in terms of project returns, the trajectory there? And is there a case for higher returns, too, as we go forward after the end of the year.

Yes, that's a great question. And I said this a month ago, returns have been higher than I've ever seen in this industry. And I think that's due in part to the unique competitive advantage that we have, and it's exciting for us because as I think about all the opportunities that we have, not only this decade, but into the next, recontracting is a big piece of that. And so we have a lot of existing generation that rolls off a contract by the end of the decade that we're going to be able to recontract into the market at much higher premiums. But look, it's just supply and demand. It's that simple. There's a lot of demand out there, and there's just not as much supply to match it. And so that's commanding premiums in the market in high and attractive returns. And that's why it's great to be in a position where we have a really strong pipeline and a real strong supply chain position. And I think we're going to be uniquely position going forward to be able to capitalize on what is going to become just a growing market demand, particularly as we get to the end of this decade and into the next.

The next question comes from the line of Nick Amicucci with Evercore ISI.

I just wanted to touch upon kind of the evolution that we just kind of left upon. So as we kind of think about over the balance of this decade into the next. How should we be thinking about the kind of the portfolio the kind of culmination of that and kind of if we think about it by energy and generation source. Obviously, we saw storage kind of pick up here from a backlog perspective, just interested in kind of hearing your thoughts around it.

Yes. I mean -- so as I think about the next decade, we've always had Florida Power & Light and Florida Power & Light benefits from being in fastest-growing state in the United States, 16th largest economy in the world, strong growth as we accommodate all that population that continues to move into Florida. Don't see that slowing down next decade. But -- as you think about our regulated businesses, it's not just what I call kind of the baseload Florida Power and it's the large load. -- with the large load tariff that we have not had before. It's electric transmission. There's an incredible demand for transmission around the country. We have the leading competitive transmission business in NextEra Energy Transmission.

So a lot of CapEx opportunities and growth opportunities for neat as we go forward. And then you add on gas transmission as well, not only around the existing pipeline assets that we own today, but also, I think, some long-haul greenfield opportunities that we'll be talking more about gas laterals to accommodate hyperscale build-outs. So that really helps to frame even a larger regulated business than we have had historically. And then you think about all the other levers and ways to grow that we have on the Energy Resources side, not just the renewable business, it just gets stronger and stronger as we get into the end of this decade and then that will carry into the next.

But storage as well. We are in a capacity short market. Storage is economically advantaged. It's flexible. It can be built very quickly. in 16 to 18 months, whereas gas-fired peakers take 4 to 5 years in many cases. So very flexible, very low cost -- and that -- we are the world leader in storage and have a unique position with our battery supply agreement that's all domestic and is derisked from a FIC standpoint. And then I think about nuclear, the agreement that we announced not only around Duane Arnold, but the collaboration around Advanced Nuclear nationwide, all the opportunities we have around Point Beach we have around Seabrook and then greenfield advanced nuclear build-out.

And then gas-fired generation as well, having been the leader in gas-fired generation development over the last years, leveraging the development platform that we have today, the 20 gigawatt pipeline that's in place. And then you combine all those capabilities into serving the large load customer. which really, as I said before, creates a unique position for us when you combine all the capabilities we have around generation, all the capabilities we have around electric transmission and gas pipelines and also our customer supply business. Because remember, whenever you're trying to secure a load interconnect, you've got to have a retail energy capability to get that load interconnect from load-serving entities.

The customer slide business plays a very important role. You have to be able to do many, many things to be able to enable a large load transaction, and you have to have the balance sheet and you have to have the team. And we also have a 50-state footprint to be able to execute against that, which is really, really unique, given that we've been doing that for 20 years. And then the recontracting opportunity that I mentioned before, and we have a massive long power position that becomes open as we get to the end of this decade. And then all the artificial intelligence things that we're doing to really help drive efficiencies and cost savings across the business and revenue opportunities for us as well. So you put all those pieces together, we are in really good shape post 2030.

Perfect. That makes a ton of sense. And then just 1 last quick 1 for me, too. As we kind of think about now, obviously, just topic with Duane Arnold and the potential restart, how are you guys seeing the nuclear fuel supply chain kind of shape up as we kind of think about it going forward, just knowing that Russia is going to be coming offline from an enriched uranium capacity in 2028.

Yes. I mean I think the U.S. government is very focused on that. The industry is very focused on that. And we've been very disciplined in terms of how we secure our long-term fuel going forward. So I feel good about where we stand. We baked into our numbers that we gave you on Google our position around where nuclear fuel sits today. .

Thank you. This concludes the question-and-answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Thank you.

He's ready. Yes.

Okay.

Yes.

Why don't we go ahead and get started? I'm going to open with some remarks, and then we'll turn to some questions from Steve. You guys are all familiar with the company, 2 main businesses. I want to point you to the bottom part, terrific development platform with many skills that transcend all the opportunities that we have coming that we'll talk a lot more about today. And from a generation standpoint, we are really the classic quintessential all-of-the-above energy company. We're the largest gas fleet in the United States. Nobody has developed more natural gas-fired generation in this country than NextEra has over the last 20 years. Obviously, we're a world leader in renewables, world leader in storage. We have one of America's largest nuclear fleets. We're a leader in transmission, one of the leading competitive transmission businesses across the U.S. and the last company in America to co-develop a long-haul natural gas pipeline.

And we have a massive data set, a huge artificial intelligence, I think, first-mover advantage that I'll talk a little bit more about as well. Let me talk about this year. So this year, we came into 2025 with 2 major issues. One was the FPL rate case. The second one was addressing tax credits in Washington, which I'll get to in a minute. I feel really good on both as to where we stand. So with the rate case, we filed the settlement agreement. We have -- 10 of the 13 parties have joined on that settlement agreement. We have hearings that start next week that will run 2 weeks up in Tallahassee, but really a terrific settlement agreement for customers. This settlement agreement results in about 2% compound annual growth rate in bills. So we've been able to keep bills down by being low cost. We've got a terrific performance story that we're going to bring forward to the commission as we go through settlement hearings.

We've had one of the lowest bills in the United States, 30% to 40% lower than the national average. O&M that's 70% lower than the industry average on a dollar per megawatt hour basis, top decile on reliability, outstanding storm response. So I feel very good about the position that we're in heading into this rate case. And the settlement agreement, some key terms, an ROE at 10.95%, maintaining the equity ratio, a noncash mechanism and then a large load tariff as well, which we have not had, right? And I want to spend a little bit more time talking about that because that's a new opportunity for FPL. And credits ended up in good shape there, wind, solar through 2030, nuclear and storage through 2039 before the phase downs occur. So that really helps enable a lot of the growth that we have not only through this decade but into the next decade as well. Battery storage. Oh my gosh, we are seeing a ton of demand right now around battery storage. And it's not a surprise, right?

We're in a capacity short market. But if you look over to the right-hand side here, you can see that battery storage has a big cost advantage against gas-fired peakers. And it's not even close, and it's across all ISOs. It's a flexible generation source. You don't need a fuel supply, and we can locate it where it needs to be very quickly. And on battery storage, there's 4 big opportunities for us. I mean, one is colocation. Because we're going to have a 75 gigawatt portfolio of renewable assets by the time we get to the end of '27, all kinds of opportunities to co-locate batteries at those facilities. So a huge development pipeline to start with. Then there's stand-alone storage opportunities that we're pursuing in this capacity-short market. Third, grid solutions, right? So if we put this together with our transmission business, there's pockets where we can add battery storage to alleviate the need for transmission upgrades. And then fourth, expansion opportunities.

So one of the things that we've seen are where we're putting 4-hour batteries in today and co-locating 4-hour batteries, we think by 2030, '31, we'll be able to put another 4 hours there, taking those facilities up to 8 hours. But think about the economics about that 4-hour incremental expansion. You already have the land, you already have the substation, you already have the interconnection. You already have the balance of plant that already exists. So those would be hugely profitable additions to existing facilities. And you think about our footprint, I mean, just a massive battery expansion opportunity for us going forward. When you put all the pieces together, we have a long track record of outperformance. You can look at us on a 3-year basis, a 5-year basis, 7-year basis, 10-year basis, 15, 20, take your pick. This is how we've performed against the peer average, and we have a ton of growth opportunities going forward. So the future looks very bright.

This is a slide I want to spend a little bit of time talking about, though, because I think most of you would think about our business as what I would call FPL classic plus renewables plus storage. Well, the opportunity set is much bigger than that. Going back to one of the earlier slides about our leadership position in gas-fired generation, being one of the leading nuclear developers, our position in transmission, we have a lot of ways to grow. And our plan that we'll be bringing forward at our December 8 Analyst Day really ties back to what I'm showing you right here. So first of all, I talked about FPL classic, right? And so FPL benefiting from that settlement agreement that we feel very good about going forward. I think we've not only got good growth through the end of the decade, 4 years of certainty through 2029, but then post 2030 in one of the fastest-growing states in the United States, 15th largest economy in the world, a lot of growth opportunity at FPL as we look to the future, I feel great about the position that we're in there.

But one thing we haven't had is a large load tariff. And so large load has not been something that we've talked a whole lot about in Florida. As part of the settlement agreement, we have a large load tariff. So now we're going to be able to enter the hyperscale discussion and talk about bringing data centers to Florida. And in a way that will protect customers because I think the large load tariff is very balanced. And then kind of sticking with the regulated theme, electric transmission. We have significant opportunities for transmission build-out outside of Florida through our competitive transmission business. Right now, this may surprise you, we already have $6 billion of rate base investment, $2 billion that we've made, $4 billion that's secured and that's in progress of being constructed and then a lot more to come. We have a multibillion-dollar pipeline of potential transmission opportunities going forward. We've been very successful working with incumbent utilities in partnership.

We've been very successful working with co-ops and munis. So a big, big opportunity to build out transmission not only through the end of this decade, but well into the next decade. That will really start to show up contributing earnings in 2030 and beyond. Then you think about gas transmission, you all know we have the Mountain Valley Pipeline. We have Sabal Trail. We have Lowman Pipeline in Alabama. We have Florida Southeast Connection. There's an opportunity to expand off the MVP pipeline with our Southgate project in North Carolina, yes, the -- some compression expansion projects. And then you think about how uniquely located that pipeline is, Marcellus, Utica taking gas down to the Southeast. Florida may need more pipeline capacity at some point, too, Southeast expansions. And then when I think about large load opportunities that I'll talk about in a minute, the ability to bring gas laterals and gas pipeline capability to bear there provides for a nice footprint as we make investments now, that will start contributing 2030 and later.

So that's the first piece. Now let's drop down to the Energy Resources business. Renewables. Renewables demand is stronger than it's ever been, and we're getting some of the highest returns that we've ever seen in our business. Storage, I talked about, tons of demand for storage. Those credits go through 2039. They don't come with permitting restrictions, in really good shape there. I'm going to skip large load and come back to it. Nuclear, we've looked at the top 95 SMR manufacturers, cooled that down to 12. We've been doing commercial technology reviews of SMR OEMs, trying to see who we think the 2 or 3 top folks are. And can we come to a commercial arrangement with them, maybe partner with the DOE, approach us with some hyperscalers that would like to look at SMR as a potential solution where we can enter into a risk sharing arrangement that's tolerable to us to perhaps have SMRs that contribute by the middle of the next decade. And then finally, gas-fired generation.

Gas-fired generation, we have a 20-gigawatt pipeline already of gas-fired generation sites around the United States. This is not new for us. Like I said, nobody has built more gas-fired generation over the last 20 years than we have. We have the know-how. We have the relationships to do it. And when you think about these things, none of this is new. It's not like we're jumping outside of our lane. These are things that we've been doing for 2 decades. So we don't feel like we're taking a whole lot of risk on going into these areas, and we are able to leverage a development platform that already exists today. So with our developed platform, we already have land agents. We already have a permitting capability. We have an environmental team. We have state regulatory. We have federal regulatory. We have the customer relationships. And we have the customer supply business, right, and the retail business that can help us get large load interconnects. And we could put all the pieces together in a way that nobody else can.

And when I look at this data center and hyperscale opportunity, I think it's going to be divided into 2 camps. One is what you're seeing from the IPPs, which is really trading around existing assets and contracting around existing assets. The second piece that doesn't get talked about as much is the bring your own generation piece, right, which is going to require development expertise to be able to bring these projects to fruition. And there's not going to be as much competition for them because like what we see in renewables today, it's a smaller scale developer that can compete, well, not with these large-scale solutions because when you're talking about investing $3 billion or $4 billion in a gas plant, combining that maybe with some solar and some storage, perhaps SMRs later on down the road, transmission, gas pipelines, you have to have scale, scope, skills and a giant balance sheet, right, to be able to pull that off and to make that work. There's really not many folks that can do what we can do.

And our service territory isn't limited to 1 or 2 states. Our service territory is all 50 states, right? We could do this across the country. We can do it with co-ops. We can do it with munis. We can do it in deregulated areas. We can do with oil and gas majors, gas producers. We can do it alone. And we can work with small to midsized utilities that may be tapped out on balance sheet constraints as they approach their downgrade threshold metrics, which can create win-win opportunities kind of like what we do with renewables, some PPAs, some balance, some build-own transfers as part of that. So really exciting about what the future holds there, and we're having a lot of success also on the large load outside of Florida for all the factors that I just mentioned. And then the final 2 pieces before we turn to questions from Steve are, one, remember, we have a long power portfolio. So we have assets that are rolling off of contract by 2030. So if you think back to 2010 through 2015, we entered into a lot of contracts when power was cheap at $15 a megawatt hour, $20 a megawatt hour.

Well, today's world is much different. We could get $20-plus premiums by recontracting those renewable projects that are rolling off a contract that would largely displace the lost value of the tax credit. So a lot of option value embedded in those assets, along with the ability to put storage at those sites, as I mentioned before. And then the last piece is artificial intelligence. I feel like we are way ahead of the rest of the industry from an AI standpoint. We have a massive data advantage. Those of you who have been down to Florida for our Development Day have seen our tools in action. We bought a supercompute business back in 2005 that we've grown to include software engineers, data scientists, PhD mathematicians. We are unleashing a massive artificial intelligence effort at our company right now.

We're going to redefine every process, redefine every job, and we're going to come up with ways to more efficiently run our business and to more effectively, even though we're doing the day, originate do deals because we use these tools and the data advantage that we have to prospect for the best sites, whether it's renewables, whether it's gas, whether it's how we site transmission, where we put gas pipelines. These tools give us an enormous competitive advantage. And as you can see the way the lines line up, look at all the growth drivers that we have top to bottom 2030 and beyond. So many levers, so many ways to grow. So feel great about the business through the end of this decade, feel great about the business post 2030. And with that, Steve, I'll turn it over to you for questions.

Great. Maybe we'll each go over and see there to the...

Yes. There we go.

Kind of get there earlier. That was a great intro. You even gave me a chance to not be talking so much. So -- but John, not to be blunt, but the main question that I get and you've gotten probably somewhat this year, is there going to be an earnings cliff as the tax credits roll off? Or an earnings slowdown at NextEra? Anything about that?

No. Look at the right-hand side of this chart behind me, right? I mean that -- when you look at all the different ways that we have to grow post-2030, we feel great about the business this decade. We feel great about the business next decade.

And how -- and in some ways, it's a little unfair or tough because you're probably the one company that I work on where people want to know what's going to happen in the first half of 2030. So when you do this Analyst Day and the like, how much are you willing and able to kind of communicate with specifics out there?

Yes. Great question, Steve. I mean so one of the things that we're thinking about for the Analyst Day is really trying to give you color as to how we get a lot of comfort around each of these things being growth drivers. And so when you see the investment horizon associated with these initiatives, we're going to give you milestones, right, to kind of gauge how we're doing. Are we actually doing what we thought we could do in transmission? Are we doing what we thought we could do around gas pipelines? Are we doing what we thought we could do around new build gas-fired generation? And so kind of like what we do with renewables where we give you megawatt targets, we're going to give you tangible targets around these different areas. So it will actually change kind of the tone of the call.

It's not just going to be getting on a call and talking about, well, how -- what was the regulatory capital employed growth at FPL and how many megawatts did you do on the renewables side. We're going to be looking at these other factors as well to kind of track progress going forward. And when I think about the post 2030, we're going to give you enough detail to think about in terms of market share, perhaps, maybe CapEx numbers. We're still working through that piece of it to where you'll -- investors will leave comfortable that, yes, post 2030, these folks haven't figured out they're good to go. They have so many growth drivers ahead. And with where the market is heading, we're in great shape.

That's good. On the data center story at NEER, you make a compelling case for all the advantages you have and the like, and I know you've done several renewable projects with data centers. But we haven't really seen kind of the evidence of doing a big deal with hyperscalers across these different businesses and the like. What -- how confident are you that we're going to start seeing some kind of tangible evidence of those in the next coming months?

Yes. So we've been working on them. We'll talk a lot more about it at the Analyst Day. I mean one of the things that we've been -- that we're able to do with our land team is you could take the average data center customer and the needs and demands that they have just continue to grow. And so where they used to want to come with maybe a 1,000-acre opportunity, which is like 1 gig of compute capacity. Now we're seeing that inch up to 3,000. Just had somebody recently come and say, show me 6,000 acre site, 6 gigs of compute capacity. Think about what that requires. And what they want is somebody that can come with electrons right now that they can then grow into over time.

So to the extent we're able to provide a renewable solution, for example, like a solar and storage off the bat that can then bring a data center customer to a certain area, but then we can show gas expansion off of that. Now they have a way to combine the 2 together. They've got an offset against the gas emissions with the renewables, really attractive low-cost product that can provide certainty to where they want to be. And so what we're trying to do with the sites that we're developing is make sure they're big enough from the get-go when the way we're thinking about and how we're designing and constructing them and the land positions that we're taking to where we can grow into their needs over time because these are sticky customers.

When they come, they may come with 1 gig of compute capacity to start with, but they're probably going to want to grow into 3 to 5 to 6 gigs over time. And so the embedded option value in having one site from the start is enormous if you've planned ahead and have been able to design and structure a development site that has a lot of expansion capability around the things that are right behind me.

Okay. But in...

And in terms of announcements, we continue to work on those and our discussions continue to progress. Is it going to be in the next 2 or 3 -- I'm not going to pin myself down on that, but you will see deals come forward. And I feel good about that.

Okay. Didn't hear you specifically mention Duane Arnold in all this, I might have missed it. Just how are you feeling about the Duane Arnold -- yes?

Feel great. I mean Duane Arnold is going terrifically. I was actually out at the site at the end of August, toured it. The plant looked almost identical to when it was shut down. I mean we really did a great job of just preserving what's already there. We have a cooling tower we got to build. But other than that, it's basically just doing a lot of retrofitting around the existing equipment. The site is in great condition. The plant facility is in great, great condition. We've already filed with FERC for the interconnect. We're working with the NRC, I think, as a lot of you know, and the commercial discussions continue to progress well.

So one thing that you talked less about, maybe a little bit less, is renewables. And I think some of that might be you have a lot of other things that you're doing. But maybe devil's advocate say this, well, maybe are things not as good as renewables as they used to be. Maybe you want to talk about how much renewables still -- how well it's going to do over the next...?

Yes. Actually, what we're seeing in renewables, it's better than ever. I mean the volume and the interest from customers is stronger than it's ever been for us. The inbounds just continue to come. And we've done a lot of work on making sure we have fully permitted sites, that we have sites that are ready to go from an interconnect standpoint. And so we feel great about where that business stands. And then on the storage side, oh my gosh, I mean, the amount of inbounds we're getting on storage and the need and the voracious appetite of this market around storage. So I didn't talk a lot about it.

The renewable business is going really well and the storage business is going really well because the market needs electrons now, and these are ready to go electrons. So when I look at like a hyperscale customer, I could -- we could provide them with a wind, solar storage solution. We could provide them with recips and air derivatives to get them up and going until a gas turbine can come online in 2030, '31. I mean there's a lot of different ways to approach this. But having ready-now electrons gets your foot in the door and then your ability to add on to what the generation mix could look like going forward, which is a nice anchor to have for these opportunities as we look to the future.

Great. Well, I want to start opening up to questions from the audience. Maybe I'll just -- I'll ask one more before we get there, in terms of just the recontracting aspect. Is there any way to kind of size that up? And just when you kind of compare that related to tax credits rolling off, is it -- do they largely offset each other? Or I guess we'll see where prices are then?

Yes. Yes. We'll see where prices are. I mean it is a very nice EPS contributor when we look out to the long run. It's one that's just kind of a continuing annuity because every year, you're going to have -- because we started building renewable projects back in '01, 2002, you're constantly seeing projects roll off the contracts. And as our development volumes started to pick up post 2010, that continuing annuity just gets bigger and bigger every year as you go because most of our contracts are 15 to 20 years and you're -- they're expiring into, as we all know, kind of a nice long power supportive environment that given the low prices we're entered into compared to where you are today compared against new build costs, puts us in a great position.

And then what we're also finding is that with some of those sites, those can be anchors for these data center hubs where you can actually take an existing renewable project and then bring gas to it, bring storage to it. And now you've got a nice footprint that can -- that's a ready-to-go expansion for -- to accommodate a data center need because a mix of technologies is something that definitely sells.

And would you also be repowering?

We would, yes, we'll be repowering a lot of these sites through 2030 as well, both wind and solar. We're looking at solar repowering as well. So those are opportunities on top of it.

Great. Well, let me open up for questions from the audience. Well, you hit it really well, John. Go ahead, Dave.

Well, I think you toughed on what Steve was asking as you think about repowering and with the battery. How do you think about the [indiscernible] of the big megawatt solar site today, let's say, an 50-megawatt battery. You can't run at 100 megawatts because you have to put power into battery, [indiscernible] and you're thinking about [indiscernible] like you can repower [indiscernible]...

Yes. I mean the amount of the charge time, right, when you're actually having to charge that battery, you're really trying to look at an energy arbitrage opportunity. So hopefully, you're charging the battery during low-price hours and then discharging at higher-price hours. If you're under a contract, you're already embedding that into your financial decision. So we run a DCF analysis, and we know we're going to put a battery there. We call that clipping. So we'll actually clip the generation for that 4 hours a day, and it's already taken into the economics and how we look at the stand-alone repower economics versus the battery dispatch economics.

Yes, right.

Can you give us some guidance towards how the mix shifts as we get beyond 2030 [indiscernible] between the [indiscernible] and the [indiscernible]?

Yes. I mean right now, Marie, we're at like 75% regulated when you look at the business mix today. And you look at all the growth opportunities behind me on the energy resources side, but yes, also looking at where we are on the regulated side. So if you look at FPL classic and the growth opportunities we have there and then you start thinking about large load for Florida, and then looking at that NextEra Energy Transmission bucket, which will give you CapEx numbers, right, it's a big opportunity around NextEra Energy Transmission. We can approach $16 billion of CapEx by 2030. We could double that by 2035. And then you think about the gas pipeline business. So the ballast that you're getting from that regulated bucket, I think, would largely offset a lot of what you're going to see in the growth opportunities that we have on the Energy Resources side. So we feel really good about the business mix, not only as we think about this through the end of the decade, but into the next decade as well.

There was a question, hey, Jim?

Returns on capital employed all over this period, I mean a lot of investing going on [indiscernible]?

They go up. They go up. I mean what we've been -- what we've seen -- I say that for 2 reasons. I mean, one is that we have a scarce commodity around our renewable business right now, which is fully permitted sites that have interconnects. And so that is an opportunity set that a lot of our competition doesn't have. And we're already seeing that from certain customers coming back because somebody has backed away from them because they didn't have fully permitted interconnected sites. We've safe harbored around credits. We've safe harbored around [indiscernible]. We've planned around our supply chain. We've done the things that you would expect us to do. And so that creates a nice supply for us, but all those factors also create scarcity in the market around what can be built. And so that's why it supports higher returns, a higher return on capital employed.

And when I think about the hyperscaler or large load opportunities, it's kind of the same thing because when you start thinking about bring your own generation and having to build out these multi-gigawatt power solutions, there just aren't that many people that can do it because they just -- they don't have the balance sheet to write $5 billion, $10 billion checks, first of all. But then they also don't have an all-of-the-above energy capability, a transmission capability, a pipeline capability, a marketing company with a retail presence. I mean, all the pieces that have to come together for that to work, supply chain, scale, operating scale, it creates kind of a much smaller pool of obvious candidates that can bring those forward. Plus what we're also seeing as a hyperscaler that is looking at this market and saying, look, I can't afford -- it's kind of where utilities ended up a couple of years ago post AD/CVD, where they got burned by a lot of small developers that just backed away. They -- a lot of small developers just viewed their contracts as option contracts and walked away.

A lot of that business came our way because we had the equipment to actually get those projects built. And I think what a lot of hyperscalers are doing now are saying, well, who can really get this done for us. And we can't afford to take chances because the power doesn't show up and we're 4:1 on the CapEx on our data center build-out, boy, we got to make sure we're partnering with somebody that we know that can actually deliver and be there. And so that's why I think a lot of that bring your own generation business comes our way, and we're in a very limited pool of people who can actually execute in that business. And I think it's an underappreciated part of the hyperscale build-out opportunity set going forward.

Other questions?

[indiscernible]?

Yes. I mean all good conversation is for December 8, just not to front-run that. But look, long story short, we feel really good about the business through 2030 and we feel really good about the business post-2030. And we're in the golden age of power I mean. And we are a -- what I would call as the premier energy infrastructure developer in this country, and I like our chances.

For gas transmission, is that something you'll approach [indiscernible] partnership, I guess, type of approach or is it something you're potentially [indiscernible]?

We've done it both ways. I mean we've done partnership build-outs on long haul, like we saw with MVP, with EQT. We've done it on our own. When you look at Florida Southeast Connection, for example, Lowman in Alabama with PowerSouth. It will depend on the opportunity set. And it will depend on where the long-haul pipe opportunities is located, the interconnection. There's a lot of factors that go into that.

Yes. Go ahead, [ Noah ] and then [ Jeff ].

John, from the standpoint of [indiscernible] are you seeing this [indiscernible] like to optimize or like a revenue line or something that can help [indiscernible]?

Yes, great question. So both. So on the revenue side, I mean, I see 2 big opportunities for us. I mean, one is we use our AI tools today and our data advantage for origination, and it's been enormously effective. So what we do, we can go into any utility in the country, any co-op, any muni. We can do a 10-year site plan for them, and I'm not kidding, no, in a week, right? It takes most of these shops 6 months to a year to do a 10-year site plan. And we usually are within 95% of kind of where they come, but there's always new learnings for them coming out of it because of our experience across generation types. So a lot of times, they'll miss in terms of what the right solution is. They may think it's solar or battery when it's a gas-fired unit or vice versa. And so we have all technologies already loaded into that. We can help them make informed decisions around when to take projects offline and replace them with new generation and where the right pockets are to do the build-out that they're looking to support. If it's transmission.

We have a product called TeraGrid, which is a digital twin of the entire United States grid that has an amazing amount of information in it when you're thinking about where to interconnect, where to locate land. We have a product called Ratify that comes with the lowest cost route for any transmission expansion. We share that with the ISOs to try to encourage them to build new projects, but we also share that with our customers as well. So that's a big revenue opportunity that we use as a frontline origination function. Second, as we use AI to make our business better, like the way we approach operations, I mean, imagine a real project, right? We have somebody in our gas plant wearing meta glasses looking at a turbine fault and they're taking a picture of it. The hands are free. They've got an iPad. They're using AI to come up with a tenfold parameters associated with what's coming through the meta glasses.

And they're picking -- trying to pick the 2 or 3 things that are driving that. Central maintenance is looking at the visual image of that back home, trying to dissect what exactly the problem is. The 2 of them come together with an instantaneous solution. We then use AI to go run a reverse RFP on the part that needs to be delivered. It's transported overnight. We have it, and we ran an RFP to get the best price in the world. And we did that with very few human beings involved. I mean that's just one example of the many, many things that -- and we'll do that across power delivery, across nuclear, across gas-fired generation, wind, solar, the scalability of this platform is enormous. The cost-out opportunity is enormous on top of growing the top line. And that's a product that I think we could license and create into a software product that we can sell not only across the United States, but probably globally.

I'll let you, John, just on -- because it's hard to imagine -- you're talking about this as another whole initiative to lower costs. Maybe you can talk about how much lower your costs already are versus peers and such in that context. It's kind of hard to imagine.

Yes. It's not even close. I mean like when you look on an O&M on a dollar per megawatt basis, I'll go back to FPL, I mean, FPL's O&M is 70% lower than the industry average. When we show you guys the chart, you have to find our dot. It's so low compared to where everybody else is. If you look at us on nuclear, I mean, we have a massive O&M advantage on nuclear. We have a massive O&M advantage on gas, on wind, on solar, on storage, top decile across the board and only getting better. And when you think about taking cost out with the capital investment that's coming, affordability concerns that you'll start seeing across the sector, being really low cost is not only going to help us control bills and keep bills low inside of Florida, it will help us do it outside of Florida as well.

It's [ Jeff ], right, yes?

How about the M&A? [indiscernible] any assets you're thinking about [indiscernible]?

Yes. I mean, look, I mean, we can always be opportunistic around M&A given all the advantages that we have, not only the competitive advantage that we've gone through, the capabilities across technologies. M&A would be a little bit different, I mean M&A before was generation displacement. Now it's more generation growth driven, right, but driving CapEx investments while taking cost out of the system. So the ability to leverage the scaled platform to be able to take cost out to address affordability concerns in high-growth utility areas is going to be extremely important.

John, how are you thinking about financing all these -- I'm looking at the slide there, all the growth and just you're already doing a lot at FPL and renewables, and with a lot of other things, do you feel good about the financing?

Yes. We do, so we have a great financing plan put together. I got the best CFO in the space back there, and Mike Dunne. His brain has been all over this. But you'll see it on December 8, Steve. A very manageable finance plan, feel very good about it. There's a lot of cash flow coming off the existing assets. You look at our ability to leverage project finance, tax equity, the dollars there, the tax transferability program with our monetizing credits, we're in great shape from a financing standpoint. And living within our means as well, right, within the metrics. We're never willing to compromise the balance sheet that we have. So we feel great about where we are and very comfortable with the finance plan that supports these growth initiatives.

Other questions? Well, great. John, thank you.

All right, great, Steve.

Yes.