Q1 2020 Earnings Call
Dead dead, good morning, and welcome to the next era energy Inc, and nextera Energy Partners LP earnings conference call. All participants will be in listen-only mode should you need assistance. Please email confirmation specialist by pressing the star key followed by zero after today's presentation. There will be an opportunity to ask questions to ask a question. You may press * then 1 on your touchtone phone. So withdraw your question, please press * then two, please note. This event is being recorded. I would not like to turn the conference over to that raw Scott director of investor relations, please go ahead.
Thank you. Grant. Good morning everyone and thank you for joining our first quarter of 2020 combined earnings conference call for nextera energy and extra Energy Partners with me this morning are Jim Robo chairman and chief executive officer of nextera energy Rebecca. Kiava Executive Vice President and Chief Financial Officer of nextera energy, John Ketchum president and chief executive officer of nextera energy resources and markets and Executive Vice President of nextera energy. All of whom are also officers of nextera Energy Partners as well as Eric selagi president and chief executive officer of Florida Power & Light company will provide some opening remarks and will they took the call over Rebecca for a review of our first quarter results or executive team will then be available to answer your questions?
Well, 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 to differ materially from our forward-looking statements. If any of our jobs options 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 company presentation on our latest reports and filings with the boss. He's an Exchange Commission Each of which can be found on our websites next are energy, and nextera Energy Partners, 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 a company today's presentation for definitional information and reconciliations of historical non-gaap measures to the closest Finance measure with that. I will turn the call over to Jim.
Thanks, Matt and good morning everyone before I begin. I want to take a moment to extend our deepest sympathies to all those who have been personally affected by the covid-19 pandemic.
The country in the world are facing devastating impacts from the spread of the virus, and we remained resolutely focused on doing our part by continuing to deliver affordable and reliable power.
Never before has it been more clear how critical electricity is to the world and our team is laser focused on ensuring it's under uninterrupted delivery. So First Responders can help those nice businesses can continue to operate where possible governments can continue to function in our customers can go about their daily lives to the greatest extent possible during these challenging times.
As part of nextera energy is core commitment to do the right thing at both FPL and Gulf Power. We have taken steps to help customers face. The challenges that the pin demek is created.
Both utilities have suspended electric disconnections during the state of emergency to ensure. Our customers have continued access to power regardless of their economic circumstances additionally a month. The typical Gulf Power residential customers will receive a one-time Bill decrease of approximately 25 and 40% respectively as an accelerated flow back of lower fuel costs them the next door energy companies employees have also committed more than four million in emergency assistance funds to provide critical support to the most vulnerable members Community. Our hope is that these steps will help customers navigate this difficult and unsettling time and support a more rapid recovery for them in the Florida economy, generally.
We remain deeply engaged in helping Florida returned from this pandemic stronger than ever and will continue to do our part to support that outcome.
It is during challenging Times Like These that the culture of nextera energy shines through a culture focused on leadership accountability a passion to be the best and a focus on Flawless execution. Nextera energy is employees have exemplified these characteristics over the past several weeks. I am very proud of how they've stepped up. Once again confirming my belief that we have the best team in the industry and that our culture in our people our most important asset
Despite their daily lives being disrupted by the ongoing effects of the pandemic our employees focused on continuing to do their jobs and deliver an essential resource for customers. And our economy is unwavering Faith. I'd like to take a moment to thank all nextera energy employees for their continued Focus hard work and execution during these challenging times. It is because of them that I've never been more confident in our ability to deliver on all our expectations to our customers shareholders and other stakeholders.
As we focus on execution the safety of our employees and the community is always our number one priority to ensure that are critical operations, including the grid with in Florida and generating facilities. Typically our nuclear sites continue to operate safely and remain available to serve our customers. We have instituted our pandemic plan, which was most recently updated last year off and have taken aggressive message to protect our employees. We understand the critical role that electricity plays in the economy and the daily lives of Floridians an FPL Gulf Power remains steadfast. We focused on meeting their commitments as we Face the challenges created by the pandemic. We are fortunate that preparedness and crisis planning our in our DNA for nearly seventy years wage General drills to prepare for disruptions to our business. And while the circumstances of this situation are unique is that preparation to deal with the unexpected that is allowing our company to continue to deliver.
For our customers through this challenging time.
Our transmission and Distribution Systems continue to perform in line with the typical high reliability standards the more than 5 billion dollars that was invested since 2006 to be a stronger and smarter grid allow us to leverage Automation in manage the T&D system remotely that Automation and its ability to limit humor human intervention has never been more important than today operations at all are generating facilities at FPL Gulf Power and energy resources had been modified to protect the health and safety of our employees in the pandemic is not found any meaningful impact at this time.
In addition to ensuring continued in addition to ensuring continued safe and reliable operations that are plants are nuclear team also delivered outstanding performance during the recent ruling outages at Saint Lucie in Point Beach. In fact, The Point Beach refueling outage was one of the shortest outages in our entire nuclear Fleet in the past twenty years. The ongoing outage has Turkey Point in Seabrook also continued progress. Well, one of our most important core values Is our commitment to Excellence in all that we do.
Over a long period of time we've invested significant time and effort in developing key strategic Partnerships particularly related to our supply chain to help support our ability to execute during challenging times took these over the past several months our key strategic Partners have continued to deliver highlighting the value of deep long-lasting relationships with best-in-class companies these jobs relationships and our position is the industry leader give us confidence that our equipment deliveries should remain on track even if others face supply issues over the coming months our engineering construction team also continues to perform exceptionally. Well keeping the largest construction program in nextera energy is history on schedule and on budget.
Next door energies financial performance for the first quarter reflects this strong operating performance across all our businesses with adjusted EPS increasing more than 8% year-over-year.
Let me now turn to our strategic Focus which remains unchanged at FPL and Gulf Power. Our Focus has been and will continue to be on delivering an outstanding value proposition of low bills have that ability outstanding customer service and clean energy solutions for our customers the value of fpl's smart Capital Investments that we've made over the past several decades have have never has never been a more clear these Investments including FPL highly efficient generation portfolio and a stronger and smarter grid are allowing FPL to continue to efficiently to connect you efficiently delivering affordable reliable and clean energy to our customers.
While we continue to monitor the situation our capital investment program remains on track and Gulf Power the Investments that we're making today, including one of the world's largest solar Thursday are expected to provide meaningful customer benefits over the coming years as we move toward the current challenges. It will be important that we continue to provide low-cost reliable service to our customers to support the recovery.
the flexibility
Reserve immunization mechanism combined with our best-in-class operational cost Effectiveness help position FPL to meet its Financial commitments while making smart long-term investments in a certain time in Gulf Power. We remain committed to delivering on the objectives that we have previously outlined and continue to expect to generate significant customer and shareholder value over the coming years similar to fpl and Gulf Power our strategic vision and energy resources remains unchanged and we believe the market opportunity for low-cost Renewables has never been greater in times when consumers and businesses dealing with the challenges of economic uncertainty. We expect our customers will help ease these impacts by lowering the cost of power for their customers through new renewable generation.
Over the past several months next to her energy is continue to execute across the board.
Reflecting the strong customer demand for Newell's the energy resources team had another terrific quarter of origination adding approximately 1600 megawatts to our backlog since the last earnings call, including our first six hundred megawatts of wind projects for 2022 and Beyond most of this quarter's backlog editions were negotiated remote while employees operated under stay-at-home orders off the ability to add and it was sixteen hundred megawatts despite. These conditions is a testament to our strong customer relationships Pipeline and development skills. Also included in these backlog editions or approximately 460 megawatts of battery storage products projects almost all of which will be added to existing solar sites to take advantage of the ITC and enhance the value of our existing projects for customers.
With a significant recent growth in our battery storage backlog. We increasingly see storage as an important stand-alone business in its own right next to her energies batteries investments in 2021 are now expected to exceed 1 billion dollars, which we believe would be the largest-ever annual battery storage investment by any power company in the world have a total gigawatt our capacity that discharges enough electricity to to power the entire State of Rhode Island for four hours this highlights the rapid transition to the next page Renewables development that pairs low-cost wind and solar energy with a low-cost battery storage solution. We continue to expect that by the middle of this decade without incentives New Jersey near firm wind and new near firm solar will be cheaper than the operating costs of most existing coal nuclear and less efficient oil and gas-fired generation units as a result. We expect that the dog
Return projections for wind and solar that we have previously shared will be achieved or exceeded over the coming decade representing a tremendous growth opportunity for energy resources.
As we celebrate the 50th Anniversary birthday today, we are proud of our track record of improving the environment particularly through the CO2 reductions that we've delivered as a result of our clean Energy's efforts across the country. We are at the Vanguard of building a sustainable energy era that is both clean and affordable and we're driving very hard to continue to be at the Forefront of this ruption. There's a growing within the energy sector the capitalize on the significant growth opportunity energy resources expects to extend its long track record of excellence and execution by leveraging our strong relationships with our equipment suppliers and contractors that I previously mentioned in using the significant experience that we've developed over are more than twenty years in the renewable business. We've been able to keep a construction program on track despite the significant disruptions that are occurring both globally and locally
Energy resources twenty-twenty wind turbine deliveries remain ahead of schedule. We're not current.
We experiencing any significant equipment or labor issues at any of the more than 5,000 megawatts of wind and solar projects that we expect to complete this year while we continue to monitor the situation closely. We took it at all of our plan 2020 removable construction projects will achieve there in service dates this year and believe that we will extend our track record of having never missed a PTC deadline on one of our wind projects dead.
Resources track record of execution has been a key competitive advantage over time in periods of uncertainty. We like we are currently experiencing we expect customers will increasingly want conflict in a company's ability to deliver on its commitments energy resources and extensive experience combined with our customer supplier contractor and financing relationships all separate us from other developers during these challenging times. In addition. We expect that some of our competitors May falter as a result of these challenges and we will look to leverage any opportunities that this may present the support the execution of June 8th power and energy resources strategic objectives over the past several months. We've focused on ensuring nextera energy continued strong access to Capital the strength next energies balance sheet and access to ample liquidity have always been and will always continue to be a core strategic Focus for us in times of financial markets are ruption like we've recently wage
The value of balance sheet strength and access to liquidity had become even more apparent. We entered the year with meaningful pushing against our credit metrics and access to significant liquidity wage largest and most Diversified bank group in our sector and maintenance of the industry's largest credit facilities in the middle of February. We issued two point five billion dollars in equity units to add additional cushion against Bush credit metrics and further supplement our liquidity additionally since the market disruption began. We further improved our quiddity position with an additional roughly four billion dollars in longer-term finance office, including one point 1 billion First Mortgage bonds, one point two five billion of capital Holdings debentures and an additional one point eight billion in capital Holdings term loans.
Following these issuance has nextera energy now has approximately twelve billion dollars in liquidity to help support the largest capital investment program in our history and we plan to continue to be prudent in our financing plans for in summary. Nextera energy remains. Well positioned to continue to execute over both the near and long-term Horizons over a long period of time. We've focused on building a business that is resilient and able to deliver for our customers and shareholders regardless of the economic and market conditions and we remain laser focused on extending that track record today.
Even throughout the greatest market dislocations last month, nextera energy maintained ongoing access to Capital which is a reflection of the strength of its balance sheet as well as the overall resilience of nextera energy underlying businesses FPL and Gulf Power operate and what we believe is one of the most constructive regulatory environments in the country the strength of money in golf Powers balance sheets and capital structures combined with the constructive stable and forward-thinking approach of Florida's regulatory environment and our long track record of execution should prompt investors confidence that both companies will continue to be able to deliver for customers and perform. Well in a variety of economic environments at energy resources. The portfolio is focused off.
on long-term contracted clean energy
You projects with high credit quality customers, which we expect will be largely insulated from changes in the underlying economy despite the current economic challenges and as a result of the strength and diversity of nextera energy underlying businesses. I will be disappointed. If we are not able to deliver Financial results at or near the top end of our adjusted earnings-per-share expectation ranges in 20, 20, 21 and 20 22 while with the same time maintaining our strong credit ratings and most importantly continuing to reliably deliver for our customers while our expectations. I'm assuming normal weather and operating conditions. I have confidence in our ability to meet these expectations, even when accounting for a reasonable range of impacts and outcomes that may result from the current pandemic.
Let me now turn to nextera Energy Partners while the covid-19 pandemic has created significant uncertainty throughout the economy. Nextera Energy Partners remains wage position to continue to deliver on its objectives and its commitments.
We do not currently expect any material Financial or operational impacts as a result of the pandemic additionally as a result of the actions that we took last year including two significant Acquisitions, the organic growth Investments that are being executed in the steps taken to reduce its overall cost of capital nextera Energy Partners entered 20/20 particularly. Well positioned off this favorable positioning is even more valuable during times of uncertainty. Like we're experiencing today the benefit of last year's executions a parent and our first quarter results with adjusted ebitda and cash available for distribution increasing roughly 30% and 200% respectively year-over-year. We expect to achieve next to her Energy Partners mm distribution growth objectives, while maintaining a trailing-twelve-month payout ratio in the mid seventy percent range even after excluding cash distributions from our desert sunlight projects. Yep.
Waiting the significant flexibility any P has going forward while we while we will continue to be opportunistic a favorable position with which nextera Energy Partners entered the bank gives it the flexibility to achieve its long-term distribution growth objectives without the need to make any Acquisitions until 2022 one year later than we previously disclosed.
Nextera Energy Partners liquidity position also supports its flexibility and achieving its long-term growth objectives at the end of the first quarter next year our Energy Partners maintain a liquidity a network box position including cash on hand of approximately 650 million dollars. Nextera Energy Partners. Only near term debt maturity is a 300 million convertible debt issuance that matures in September of this year, which may be converted to units if the conversion price is achieved without any near-term acquisition needs and no other corporate level debt maturities until 2024. Nextera energy Packers maintain significant liquidity to help achieve its objectives the steps that nextera Energy Partners is executed in the past year such as the upsize and extension of its revolving credit facility as well as the project recapitalizations that create significant project Finance debt capacity within the NDP portfolio. Give us confidence that sufficient liquidity will be maintained. We also expect
get the diversification of financing Alternatives that
NEP has pursued since its IPO will provide flexibility and continue to access to Capital regardless of potential disruption in the capital markets by leveraging the significant a private infrastructure Capital that has a strong demand for high-quality long-term contracted clean energy assets. Nextera Energy Partners maintains, an attractive additional financing source and something we believe any p is well-positioned to execute on accretive Acquisitions for LP unit holders going forward with the tremendous expected long-term Renewables growth combined with the strength of next to her Energy Partners, existing portfolio and continued access to low-cost sources of capital. We believe any p is uniquely positioned to take advantage of the disruptive factor is reshaping the energy into a job with access to energy resources unparalleled portfolio of Renewables projects that now totals roughly 25 gigawatts, including the sign backlog as well as the ability to execute on third-party. Yep.
Positions in organic growth opportunities, we have as much confidence in nextera Energy Partners long-term future as we ever have had we look forward to delivering on that potential over the coming years in closing while the covid-19 pandemic has created significant uncertainty throughout the economy is not changed the fundamental value proposition of nextera energy or nextera Energy Partners over a long period of time. We focused on building resilient companies that are able to deliver on all their commitments throughout market and economic cycles, and we entered the current period of disruption uniquely well-positioned despite the ongoing challenges the core strategic Focus across all of our businesses remains unchanged and we believe we are well-positioned on our objectives going forward now turn the call over to Rebecca to review the first quarter results. Thank you, Jim and good morning everyone. Let's now turn to the detailed results beginning with God.
But the first quarter of 2020 FPL reported net income of $642 or a dollar Thirty $1 per share earnings per share increased $0.09 year-over-year regulatory Capital employed increased by approximately 9% over the same quarter last year and was the principal driver of fpl's net income growth of roughly 9% of capital expenditures were approximately 1.5 billion dollars for the quarter and we expect our full-year Capital Investments to be between 5.8 billion and 6.3 billion dollars.
Feels reported r o e for regulatory purposes will be approximately 11.6% for the 12 months ending march 2020, which is at the upper end of the allowed band of 9.6 volt to 11.6% under our current rate agreement during the quarter. We utilize $149 of Reserve amortization to achieve our Target regulatory r o e leaving FPL off a balance of $744 million dollars the amount of Reserve amortization FPL utilize. This quarter was below that was which was utilized in the first quarter of 2019 Chef Lee discussed historically utilizes more reserved amortization in the first half of the Year given the pattern of its underlying revenues and expenses and we expect this year to be no different.
We continue to expect that.
Twenty-twenty with a sufficient amount of Reserve amortization to continue operating under the base rate settlement agreement through 2021 creating further customer benefits by avoiding a base rate increase during this time.
Turning to our development efforts. We recently filed an updated 10-year site plan for FPL and Gulf Power that highlights the next phase of smart capital investment opportunities across Florida Systems off the filing reflects an expectation that FPL and Gulf Power will begin to operate as an integrated Electric System in 2022 as we've previously discussed since the acquisition closed in 2019. Gulf Power have been reviewing the potential benefits of merging into a single larger Florida utility company based on this review the companies expect that the emerging will create both operational Financial benefits for its customers as a result of power plan to take additional steps to merge over the coming months and continue to expect to file a combined rate case in the first quarter of 2021 for new rates effective in January of 2022.
The combined 10-year site plan projects projection approximately 70% increase in the amount of zero Mission electricity is generated in 2029 relative to 2019 as a result of continued rapid expansion of solar energy through the execution of its 30 x 30 plan by the end of this decade FPL projects that will have more than 10,000 megawatts of installed solar capacity including nearly sixteen hundred megawatts within the current Gulf Power service territory of this total capacity. Approximately 1,500. Megawatts are about to be constructed under fpl's recently approved solar together program, which is the nation's largest community solar program.
Since the official launch of the program last month custard demand across all rate classes has been substantial with demand from residential customers in one week surpassing the total residential private solar capacity that has been installed over the past ten years.
The strong demand is a reflection of increasing interest in cost-effective Clean Energy Solutions. The Innovative program is expected to generate $249 of total cost savings or participating and non-participating customers over its life.
Beyond the significance older expansion the 10-year site plan also highlights appeals other efforts to supply its customers with energy that is both clean and affordable relative to last year's site plan is a dramatic increase in the battery storage deployment with a total of approximately 1200 megawatts a storage capacity now expected by Twenty $29 additionally the site plan reflects eliminating essentially all of the coal from its integrated System, including the phase-out of its last operating coal plant with in Florida later this year.
Finally this year site plan reflects further diversifying and generation portfolio with the elimination of the combined cycle natural gas plants and Gulf Power that were previously expected to age-restricted in the middle of this decade this plan reflects our belief that renewable generation and particularly solar paired with battery storage in Florida is an increasingly cost-effective form of generation in most part of the Gulf Power execute on these opportunities to further modernize their combined generation Fleet. We expect to enhance our customer value proposition while also reducing our CO2 emissions rate, which is already among the lowest in the nation and is targeted to be 67% below the 2005 US Electric industry average by 2035.
Despite the channel.
The covid-19 pandemic all of fpl's major capital projects remain on track and on budget in late January 1st, sixth solar together projects, totaling approximately 450 megawatts entered service an additional 450 megawatts of solar together sites as well as the final three hundred megawatts of solar being built under the solar base rate adjustment or sober mechanism of that feels Bates rate settlement agreement remain on track to be placed in service this year.
Beyond solar construction at the highly-efficient roughly twelve hundred megawatt Dania Beach clean energy center remains on schedule and on budget as it continues to advance towards its projected commercial operations date in 2022.
We continue to expect that is ongoing smart investment opportunities will support a compound annual growth rate and Regulatory Capital employed of approximately 9% from 2018 through 2050 to while further enhancing our best-in-class value proposition.
Let me now turn the Gulf Power which reported first-quarter net income of forty million dollars or eight cents per share golf Capital expenditures were $340 for the quarter long as it continues to execute on Smart Capital Investments for the benefits of customers and we continue to expect it's full capital r capital Investments to be between $800 and $900 off as a result of these ongoing Investments regulatory Capital employed increased by approximately 25% Year-over-year golf Powers reported r o e for regulatory purposes will be approximately 11.2% for the 12 months ending. March 2020.
The overall execution of golf Powers Capital program continues to progress. Well golf Powers first solo project the roughly 75 megawatt blue indigo solar energy center was placed in service earlier this month all of its other major Capital Investments, including the north Florida resiliency connection and the cold and natural gas conversion continue to remain on track.
Similar to S&P is one notch upgrade both FPL and Gulf Power and late December which recently upgraded golf credit ratings by one notch as well siding. It's strong financial position resulting from the reduction in monthly cost and ongoing modernization efforts.
We are pleased with these upgrades which we believe are reflection of successful execution since the Gulf Power acquisition closed and which further strengthen an extra energies overall credit position.
Similar to other parts of the country the economy is being impacted by the ongoing covid-19 recent economic data reflects, Florida unemployment rate beginning to increase and a significant decline in consumer confidence as Florida continues to deal with the impacts of the pandemic. We are encouraged that the trailing seven day average have new covid-19 cases has modestly declined in the past two weeks off while it is unclear at this point how severely the economy will be impacted. We believe the strength with which Florida entered this crisis combined with the continued attraction of its low low tax office policies position, Florida. Well for a rebound, once the worst of the pandemic is behind us.
During the quarter.
Average number of customers continued its recent trend of strong underlying growth increasing by approximately $72,000 from the comparable prior-year quarter first quarter retail sales increased 3.3% year-over-year driven primarily by a favorable weather comparison on a weather normalized basis appeals retail sales declined by 7% as customer was more than offset by a reduction and underlying usage for customer.
We continue to evaluate the effects of the pandemic on retail sales which are heavily weighted to residential customers at more than 50% And then we have a very limited exposure to Industrial load off and 3% additionally since approximately 40% of FPL load is cooling related and therefore important for both comfort and building maintenance. We expect this demand driver to remain relatively stable, especially as we head into the warmer months of the year.
Weather normalized retail sales for the past four weeks are down approximately 2% relative to the prior two years with increased residential sales partially offsetting declines in other class. However, its underlying usage decline has been more than offset by strong weather with overall usage in the past four weeks increasing nearly 10% relative to the prior to your average wage or the ultimate impacts of the pandemic on underlying usage cannot be known at this time. We continue to expect that flexibility provided by a reserve amortization mechanism to offset any situation and retail sales or bad debt expense and support a regulatory r o e at the upper end of the allowed band of 9.6 to 11.6% under a current rate agreement.
For Gulf Power the average number of customers increased approximately 1.1% versus the comparable prior-year quarter golf Powers first quarter retail sales increased roughly 6% year-over-year as customer grows and an increase in underlying usage per customer or largely offset by an unfavorable weather comparison relative to 2019 over the last four weeks golf Powers would normalize retail sales have declined approximately 9% versus the prior two year average similar to fpl over this. Strong whether offset the declined and underlying usage overall retail sales increased nearly 4% versus the prior 2 year average.
As a reminder unlike Gulf Power does not have a reserve amortization mechanism under settlement agreement to offset the fluctuations in revenues or costs. So any variability will therefore have more impact the gulf's earnings and then on FPL
as we have often discussed whether normalization is imprecise and is particularly. So when evaluating short periods of time, we are providing our assessment of the changes in load in an effort to be transferred the caution that they should be considered as indicative and assess together with the overall changes in usage additional details on retail sales at FPL and Gulf Power are included in the appendix. Today's presentation.
Let me know.
Two energy resources which reported first-quarter 2020 gaap earnings of $318 or $0.65 per share and adjusted earnings of $529 or a dollar eight thousand. This is an increase in adjusted earnings per share of $0.11 or approximately 11% from last year's comparable quarter results, as a reminder last year's first-quarter results have been restored to reflect the results of our next door energy transmission projects for Middle reported in the corporate another segment.
New Investments including more than 1,500 megawatts of new contracted wind and solar projects that were commissioned during 2019 at at eight cents per share.
Contributions from existing generation assets also increased by $0.09 per share due to an improvement in Wind resource and increased PTC volume from our repowered wind projects a wide wind resource was at 96% of the long-term average versus 91% during the first quarter of 2019. Also contributing favorably were next to our energy transmission. Where wage is increased by $0.04 versus 2019 and our gas infrastructure business, including our existing pipelines, which increased results by $0.02 year-over-year.
These favorable contributions were partially offset by lower contributions from our customer Supply and trading business which declined two cents versus the particularly strong first quarter of last year.
All other impacts reduced results by ten cents per share primarily as a result of increased interest expense reflecting continued growth in the business and share dilution.
Mentioned earlier and did you resources development team had another strong quarter of origination since the last call. We've added $1,590 of renewable projects to our backlog included 600 megawatts of wind 420 megawatts of solar 457 megawatts a battery storage and 113 megawatts of wind repowering projects.
With with this quarter's backlog editions and with two and half years remaining in the. We are now well within the 2019 to 2022 renewable development ranges, that would be introduced in the middle of last year.
At this early stage. We are tracking extremely well against the total development forecast for this. And our backlog continues to track against the assumptions supporting our previously announced Financial expectations.
For the Post 20 20 22. Our backlog now includes wind solar and storage projects totaling approximately 3200 megawatts placing us far ahead of our historical origination at this stage and further supporting energy resources long-term growth visibility.
Beyond Renewables, we continue to work with our partners on Mountain Valley Pipeline and with the relevant agencies to resolve the issues related to MVPs biological opinion. We are encouraged by the tone of the oral arguments at the Supreme Court on the Atlantic coast pipeline is case related to its Appalachian Trail Crossing authorization and remain hopeful that the fourth circuit courts original decision will be overturned resolving similar issues for MVP.
We are also evaluating the recent.
Montana Federal Court decision reporting to enjoy in the Army Corps of Engineers from issuing permits under the Nationwide twelve program. We believe the ruling out of the court is incorrect and anticipate that the federal government will seek to fix the situation rapidly, assuming a successful resolution along the currently expected timeline of all of these issues. We continue to Target a full in-service date for the pipeline. 5:20 and expect an overall project estimate of approximately 5.4 billion dollars turning out to the Consolidated results for an extra energy for the first quarter of 2020 Gaffney income attributable next to her energy was $421 or $0.86 per share extra energy is twenty-twenty first quarter adjusted earnings and adjusted EPS or 1.17 billion and $2.38 per share respectively.
Adjusted earnings from the corporate and other segments were roughly flat year-over-year.
Jim mentioned extra energies current liquidity position is approximately twelve billion dollars ensuring that we are well-positioned execute on our strategic plans regardless of potential Market disruptions off the financing that we have executed year-to-date represent a significant portion of our expected twenty-twenty financing plan and we remain confident about our ability to execute the financing plan for the balance of the year and Beyond.
In the near-term we have to the positive cash balance is helping to ensure ample liquidity as we execute on our current investment programs energy resources currently has commitments for substantial all of its of its expected 2020 tax Equity financing which we expect to close as the renewable projects are placed in service later this year the financial expectations, which we extend lash through 2020 to remain unchanged. We continue to expect the next era energies adjusted EPS compound annual growth rate to be in a range of 68% through 2021 or the 2018 adjusted EPS of $7.70 plus the accretion of $0.15 and twenty cents in 2020 and 2021 respectively from the Florida acquisition.
For 2020 we continue to expect that our adjusted EPS to be in the range of $8.70 to $9.20. And is Jim highlighted we will be disappointed if we are not able to deliver Financial results at or near the top end of this range.
For 2022 we expect to grow adjusted EPs and range of 6 to 8% off of the 2021 adjusted EPS translating to a range of $10 to $10.75 per share from 2018 to 2022. We continue to expect that operating cash flow will grow roughly in line with our adjusted EPS compound annual growth rate range.
Jim noted while our expectations always assumed normal weather and operating conditions as we consider a reasonable range of impacts related to the current pandemic. We feel comfortable with the expectations that we have outlined.
as
We announced in February the board of nextera energy approved the and updated dividend policy for Beyond 2020 which is expected to translate to a growth rate and dividends per share of roughly 10% per year off at least 20 22 off of a 2020 base the board approval to continue to grow our dividend per share in excess of our expected adjusted earnings per share growth rate is reflection of the key strengths in earnings and operating cash flow growth at an extra energy, and we remain well-positioned to support the dividend policy going forward.
Let me now turn to nextera Energy Partners which delivered outstanding operational and financial performance for the quarter.
For school to adjusted ebitda was $294 and cash available for distribution including all distributions from a desert sunlight projects in both periods was a hundred and thirty million dollars up 31,000 and more than 200% respectively against the prior-year comparable quarter.
Including full contributions from the desert sunlight projects next Energy Partners would have achieved Kathy growth of 187% versus 2019.
Contributions from portfolio Acquisitions and an improvement wind resource where the principal drivers of growth new projects added $54 million of adjusted ebitda and forty four million bucks cash available for distribution for the NEP portfolio wind resource was ninety-eight percent of the long-term average versus 89% in the first quarter of 2019 cash available for distribution also benefited from a reduction in Project level Debt Service primarily as a result of the retirement of the outstanding notes that our Genesis Project and the receipt of higher year-over-year pay co-payments off.
The reduction in Project level Debt Service was partially offset by higher corporate level interest expense as a reminder. These results are net of IDR fees since we consider these as an expense.
Additional details are shown on the accompanying slide yesterday the next Energy Partners board declared a quarterly distribution of $55.05 per common unit or $2.22 per common unit off annualized basis continuing our track record of growing distributions at the top end of our 12 to 15% per year growth rate range.
Jim mentioned earlier the transactions that next Energy Partners executed in 2019 allowed it to enter twenty-twenty. Well positioned to withstand the recent Market turmoil during 2019 next to energy partner raised approximately one point eight billion dollars through three convertible Equity portfolio financing with low initial coupons that convertible Equity portfolio financing provide more cash money orders, which we expect will allow next Energy Partners to acquire fewer assets to achieve the same level of future distribution growth and therefore also reduce future financing needs.
The benefits of these financing Czar a large reason the next Energy Partners now has the flexibility to execute on its long-term distribution growth objectives without the need for additional asset off until 2022.
The market stress reduced future asset and financing needs are tremendous advantage and help further improve next Energy Partners ability to execute on its long-term growth objectives.
His neck surgery Partners Advanced towards its organic growth investments in 2019. It took steps to support the financing for these investment opportunities as well through the recapitalisation of the Texas pipelines wage projects and aunts facility related to the Mead pipeline Expansion Project and it's Advanced discussions for tax Equity financing related to the two and repowering next Energy Partners expects to finance these at creative or it's too attractive sources of long-term capital.
Last year next Sunday partner is also purchased all of the outstanding holding company at operating company notes that our Genesis Project assuming favorable resolution for our PG&E related assets about which we continue to remain confident the cash flows from The Genesis Project can support significant long-term financing capacity additionally following PG&E emergence from bankruptcy. We expect cash wage currently trapped or desert sunlight 250 and 300 projects to be distributed.
As of the end of the first quarter approximately $48 million of distributions have been restricted or withheld at the projects the Genesis financing capacity and the release of the desert sunlight trapped cash are additional money sources of capital and liquidity for next Energy Partners.
Finally over the last year extra Energy Partners revolving credit facility was upsized by $500 to 1.25 billion and the term was extended out to 2025. This incremental liquidity further supports next Energy Partners financing position and provides flexibility and how any executes on its long-term growth objectives.
Food and Capital Management is a Hallmark of our approach to how we manage all of our businesses as a result of the actions taken over the past year. We believe next to Angie Partners is particularly well positioned to achieve its long-term growth expectations.
Let me now turn to next Energy Partners expectations, which remain unchanged including full contributions. PG&E related projects year-end 20/20 run-rate cash available for distribution is expected to be in a range of $560 to $640 reflecting calendar year 2121 expectations for the forecasted portfolio at the end of 2012-13 excluding all contributions from the desert sunlight projects. Next Energy Partners continues to expect year-end 20/20 run rate for caste to be in the range of 505 million to 585 million dollars.
You're in 2021 adjusted ebitda is expected to be in a range of 1.225 billion to one point four billion dollars which assumes full contributions from the projects took any as revenue is expected to continue to be recognized.
Similar to nextera energy while their expectations always assumed normal weather and operating conditions as we consider a reasonable range of impacts related to the current pandemic. We continue to feel comfortable with these expectations. As a reminder all of our expectations include the impact of anticipated IDR fees as we treat these as an operating expense.
from the base of
Fourth quarter 2019 distribution for common unit at an annualized rate of $2.14. We continue to see 12 to 15% growth per year and LP distributions as being a reasonable range of expectations through at least 2024. We expect the annualized rate of fourth quarter 2020 distribution. That is payable and February twenty Twenty-One to be in a range of $2.40 to $2.46 per common unit. As I previously noted extra Energy Partners now expect to be able to achieve its long-term distribution growth expectations without the need for additional asset Acquisitions until 2022.
In summary, and it's Jim highlighted. We continue to believe that despite the ongoing challenges in the market and the economy both extra energy and extra Energy Partners continue to execute and maintain excellent prospects for growth. We continue to remain enthusiastic about our future and are focused on delivering shareholder values going forward.
That concludes our prepared remarks and with that we will open up the line for questions.
We will now begin the question-and-answer session. Ask a question. You may press * then 1 on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing the keys off by your question, please press * then two at this time. We will pause momentarily to assemble our roster.
Our first question comes from Julian Smith with Bank of America, please. Go ahead.
Nope, it looks like we're going to go with sharp with Guggenheim Partners, please go ahead.
Hey guys, good morning. Good morning. So a couple of questions here, you know first on the regulatory side, you know, we seen commissions get a bit challenged in 2026. They're doing schedules in some states. The process to re-engage is kind of open-ended. I know you have one of your peers is looking to fall in Florida later this year, and you guys aren't planning to file a GRC Thursday or early next year combining the two entities that said, you know you guys are in the process of preparing your fact-finding you're meeting with various stakeholders within and outside of nextera. Are you seeing any sort of coded related delays, especially as you're currently setting up to follow a case in early next year?
You know, sorry, I appreciate the question and of course regulatory, you know, you know any sort of procedures and and questions that we have in front of The Regulators are are top-of-mind to us wage. But as we've highlighted over the last couple of months and very typical with with prior preparation, you are focused for this year Headed ahead of our potential filing at the beginning of next year is really preparation and laying a lot of groundwork. So at this stage in in April, we've got a lot of time between now and and your end and and really into the beginning of next year to evaluate how things have changed and and Faith adapt accordingly, but at this point our team's focus is very much on the preparation and we continue to progress well on that.
Got it, and then just on near obviously.
Very solid addition to the backlog and you'd certainly you and Jim gave a pretty good, you know development landscape and the prepared remarks, but are you sort of seeing any hesitation on the part of both parties, you know does the current economic drop backdrop kind of deteriorates some of these counterparties and you know, you still have about 4 and 1/2 to 5 gigawatts that are waiting for people is over the next couple of years. So I'm just curious if you're seeing any kind of counterparties bulk.
So we're we're very pleased with where we are. Obviously highlighted in the prepared remarks that we are now well within the range for the development expectations that we laid out last year which at this stage in in in progression towards the end of 2022. We are very well positioned to execute on everything that we've laid out more specifically in the last couple of weeks as we also highlighted in the prepared remarks John and the energy resources team have executed terrifically well and many if not, most of those contracts that we highlighted have been signed since you know, the pandemic was starting to emerge and and ultimately on the top of Mind of our customers. So if you think about the backdrop of why that might be, you know, Renewables are the least cost form of generation and in many cases are far cheaper than the alternative form of generation of of continuing to operate very inexpensive. Excuse me, very expensive and inefficient coal and some
Nuclear facilities and our customers will save their customers money when they turn those plants off and replace them with Renewables. So we would expect it as our customers focus on what's best for their customers. They will continue to continue to want to build Renewables and into their portfolio and we're very well positioned execute and just this is this is John. I may just add on to that.
We are seeing just the terrific development environment in front of us, you know for all the reasons that Rebecca mentioned and the fact that we buy cheaper we build cheaper. We operate cheaper. We have the best development skills in the industry customers more than anything right now want confidence test in service, right that a project is going to get built. So we're actually seeing more opportunities come our way and given that we compete against a lot of small players and Bots solar and wind access to Capital and a balance sheet, which we have are extremely important and are something that we plan to create even more opportunities going forward. So actually the current environment has created a better environment for us wage.
And then just maybe Jim just one strategy question for you and you love to address these there's obviously there's obviously been a lot of valuation dispersions in this space. You know Jackson on Santee Cooper looks like they're done. I mean you've been highlighted in in media with potential interest in Kansas and Missouri. Do you have any sort of refresh thoughts especially given the recent lost opportunity that kind of just mentioned as you sort of think about consolidation. So first of all, I just addressed see any Cooper for for a moment seeing a Cooper is by no means dumb. I think you all saw the Speaker of the House sent a letter to Santee Cooper basic calling them a rogue agency. The governor wants to sell them. So it's not done, you know it, you know, the disagreements in the Senate around what to do with Sandy Cooper wed bit of a standoff around the budget dead.
in the middle of the pandemic and you can you know, obviously it's a topic that is
So quite hotly debated in South Carolina, but I would say by no means is Sandy Cooper. And there there remains a lot of a lot of energy still behind wanting to sell Santee Cooper. So just strategically overall from an m&a standpoint. I am I always like to just remind remind remind everyone always what are what are you know kind of gating gating elements of anything that we would do, you know, it has to make sense logically has to be significantly a creative. You know, you you all know how we Finance these things historically it's been with very little risk. I'm not a big believer in in financing.
These things in a way that either takes risk or puts it puts the balance sheet at risk, you know, a strong credit rating is really critical us and critical to our strategy so often, you know, all those things remain the same. I think what you're going to see in terms of the environment obviously is with the uncertainty in the financial markets and the uncertainty. That's the with the economy that's been driven by the pandemic that I think you're going to see counterparties, you know, take a pause right? I mean, that's a natural that's a natural reaction to the environment that we're in June but, you know our our strategic thinking around it remains unchanged and our approach to it.
You know remains unchanged in the you know, it will be has to be strategic has to be a creative has to be consistent with a very strong balance sheet congrats guys resolved Olga chicken. Thank you.
Question or come from Steve fleshman with both research, please. Go ahead.
Yeah, good morning. Just a couple of questions on any P. Initially the the extension of not needing any new assets.
Through 20 I guess through the end of twenty one to meet your dividend growth targets. Is that also true for any Equity financing?
through then
yes, essentially Steve there wouldn't be any need. Obviously. We have the existing vertical Equity portfolio financing and the convertible debt that would potentially, you know convert into equity in life later this year, but there's no new issuance has required and we highlighted on the in the prepared remarks that we have significant liquidity, you know for an excessive of what we would need particularly since we don't need Acquisitions to meet those distribution growth targets until 2022.
That and then secondly, I think there was a comment and I guess it was Jim slide that the private infrastructure Capital demand for high-quality, you know, clean energy assets provides attractive financing source, even in this environment or regardless of market conditions, maybe give a little more color on on your thought process there. Yes TV is as you well know, you know, one of the things that we've been particularly attuned to over the last 18 months is that there is a lot of private infrastructure capital and and the evidence of that is a package with the convertible Equity portfolio of financing is that we've executed since that time and since the, you know, I'll just call it the pandemic timeframe. So in the last couple of months, there's continued to be a significant amount of inbound interest and continuing conversations with the number of those parties to provide Capital to be in various forms. So we have not seen any changes wage.
an interest
As moving forward and and continue to be very confident our ability to to leverage those type of capital resources as we move forward and we're fortunate position that we don't need to do anything as we highlighted Route 22, but we of course will continue to be opportunistic and to the extent that there are good opportunities for any P that are attractive in a creative to any unit holders. We may well take advantage of
Okay, and then my last question just on Renewables over also, I think if I understood right you're seeing the same or mounted demand for growth. If so, no change them John you mentioned the the the fact that people maybe want a stronger counterparty these days, but then the other thing I think I I heard someone say that was or might have been June say the the opportunities might be there or more for Acquisitions or projects that people struggle to get done in time. Could you maybe talk on that last point and and how meaningful that opportunity could be Steve it's it's it it I think it could be quite meaningful. If you look back at 01809. We had a lot of opportunities in that in that time where you had developers who didn't have great access to Capital and you know, we were a source that we were a source of capital gains.
I just want to reiterate something to John said if anything the renewable Market is better right now than I ever expected it to be it. I you know, we just I just got through with.
A review of our entire portfolio of projects and and activity last week and honestly, I was really struck by the by the acceleration of activity that we're seeing and so it's it is you know, it is Full Speed Ahead on that front and I was very encouraged to see that and you know, it was really as we said in the prepared remarks a Real Testament to the strength of our development team and the strength of our Pipeline and the strength of our people and our relationships.
Okay. Thank you.
Our next question will come from Julian Smith with Bank of America, please go ahead.
Hey guys. Thanks for question. Just coming back to the first part with the the Florida utilities quickly. When you think about the reserve amortization the available balance here palm tree for for load as you see it. And again, I understand numerous caveats. I think I heard it in the comments area, but just want to clarify confidence that the balance that you have for this year will wage, um suffice and then perhaps more importantly and critically as you look towards whatever that normalization is in subsequent years and and a rake a cycle. How do you think about implementing something like reserve amortization subsequently again as you look at the post rate case. Here?
minimize some of that
Okay, I'll let me start with the reserve amortization. We highlighted in the remarks that the balance is now at $744 and we continue to have confidence that would Cost Containment and all the factors that you're pluses and minuses to that reserved memorization balance will continue to be sufficient for us to operate under the settlement agreement through the end of twenty twenty one month to really no change to our expectations that we again would file a rate case of 21 for four new rates effective in in 2022. You know Reserve amortization has been we think of very constructive Concept in in Florida regulation particularly over a number of of different settlement agreements and and ultimately rate case outcomes, but it has come about in in from the settlements and so it's not something you would you would assume that will we will have going forward but we think it has been very good for customers cuz it's been able to provide long-term rate stability phone number.
Through a variety of of of conditions including the one that we find ourselves in today. So we are we are very, you know, pleased with the constructive nature of Regulation that we've been operating on in and again particularly so for the benefit of customers
Got it, and then coming back to the renewable side of the business. Obviously, you guys have an incredible amount of confidence given the backdrop here. You're not seeing even any slippage in Timeline, especially as you think about the the C and I came here. I know the gross amount of backlog that you guys talk about seems pretty confident, but even just execution and prospective backlog that you would conceivably adam22 that that is even off staying relatively firm and I'll leave it there.
Yeah, no, no, no, no drop-off. No slow down and
one of the things that we were able to add this year for this quarter was 602-2022 and Beyond of wind which you know, it's just a bulb Head Start that we're only in the you know here in the first quarter of of twenty-twenty. So just tons of time to continue to be able to work, you know, the wind development pipeline over the next four years with the PTC being essentially at 60% through 2024. Just a lot of demand a lot of folks that own peekers off of folks who don't call very aggressively looking at renewable as an option with ESG as a Tailwind knowing that even if we are in a recessionary environment may be able to Pivot to Renewables not only brings a clean energy store story, but it also makes their economies more competitive and lowers bills for customers at a time. They need it most
Post and so that's what's really driving demand and I was going to add to that something about the you know, one of the important reasons why we continue to be confident about our ability to wage reach our c o d s keep our projects on track and and on budget is really something we've highlighted for years. Now our focus on our supply chain and developing relationships with our with our vendors strategic Partners in in many cases as we went into this year knowing that it was a significant construction development year at at all of our businesses. We had intense focus on our Supreme we always do but even you know more so this year with with how complex and intertwined it may be with how many priorities and and you know deliverables we have and entering into that pasture and and you know facing the circumstances we find ourselves in now positioned us well to manage through these new we pick top quality suppliers where we are significant customer to them.
And we've had many instances over the last couple of weeks. We we've worked closely with them to ensure that
our project stay on track and on budget and I don't think that should be underestimated, you know, focusing on long-term total cost of ownership and ability for our suppliers to deliver is really paying off well for us in this type of environment
Excellent. This is super last Quick clarification on the nwp 12 permit. You guys alluded to it seems like you got pretty good confidence that they're going to narrow that back to just Montana process wise. Make sure I've got it right there on your confidence level. So Julian, I think I think it's premature to say what's going to happen with with that. I think it's obviously a condition to it. It being dealt with quickly as a condition to us being able to deliver the pipeline this year it we think the whole thing was was incorrect and we think the government is going to is going to address of aggressively try to try to correct it that said, you know, it's still early on we don't, you know, we haven't really gotten a lot of feedback yet from from the government about what their approach is going to be dead.
And you know, we are you know continuing to evaluate it and I think it's early days. Honestly joint is what I would say to you right now. And if our prepared remarks LED you to believe that we had confidence that it's going to be done that it's going to get resolved quickly at you know, that that was not what we were trying to say. We were trying to say Thursday for us for us to build the pipeline this year. It needs to be resolved quickly and it remains to be seen whether it will be and it's something that we as a team or very along with life partners are very focused on working with the government to get it resolved and get it resolved quickly.
Excellent. Thank you guys. Best of luck. Stay safe.
Our next question will come from Steven bird with Morgan Stanley, please go ahead. Hi. Good morning morning, Steven.
I wanted to see if if you had a strong view on the potential for further Federal support for clean-energy. I'm thinking just more broadly as part of the stimulus efforts that are underway. Do you see anything that might translate into concrete additional support?
So Stephen, it's I think it's it's it's too early to tell I think there are certainly there's certainly some.
Some interest from the Democrats to include additional clean-energy support in in a in in another stimulus Bill potentially around, you know with a focus on infrastructure month. But as you've seen over the last several weeks things are extraordinarily fluid in Washington, and I I, you know, I would just say it's it's too soon to tell I think off.
It is.
You know, it's it's something as an industry that we need to be very thoughtful about in terms of how we approach it and have it be truly focused on stimulus and wage and and focused on the impacts of the pandemic and and and and make sure that that that's the focus of any of the efforts that go up in the industry. So, you know, we're staying obviously very close to it and you know time will tell but as I said, I think it's a little early and things are quite fluid.
Understood very fair. And then just one last one. You've given some some good info on power demand impacts from covid-19. I wondered if you could just be to the bank customer class impacts. There's a lot of questions about the the magnitude of uplift in terms of residential Demand versus the the downward movement for commercial industrial. I'm curious what you're seeing on the on the residential side, if if you're able to share that. Yeah Stephen one of the things that we did we put it in the appendix slide twenty-five. If you if you have a chance to take a look at it off is to give you some sensitivities for the revenue impacts for a percentage, you know, 1% change in in sales also the breakdown of our composition of choice between residential and I will you know commercial and then separately industrial obviously our load mix which is the significant majority of of the month.
Here the regulated load that we have in our business is heavily weighted towards residential and and small and medium commercial businesses. We have seen pick up in residential's we highlighted and off and it's like down taken in commercial. But is it also highlighted in in the prepared remarks and very consistent with what we've said to you over, you know long period of time, you know our ability to dissect the impacts from weather versus underlying usage are pretty good over a long period of time but in short discreet periods of time or more challenging particularly when weather has a significant impact on on load and in these last couple of weeks since you would say that there have been no significant impacts from from pandemic and officially the stay-at-home orders in I'm in Florida where in effect we've had very favorable weather. So it's hard for us to disaffected. So we are it on the side of providing you some sensitivities so that you can make an assessment on Thursday.
Owned as to what you think might happen. And what would that impact would be in terms of cash revenues at FPL and again to put a finer point to it. Remember with Reserve amortization that often results in in negligible or no impact extent that we have reserved amortization available to us on an earnings basis. This would be just a cash cash impact if it's just you know to give context for what happened in the last major disruption to load which is the 2008/2009 recession the everywhere but excluding here, of course in Florida, that was just a 4-6 and half percent effect to overall, uh, you know the load demand and that was over a course of the year. And obviously we're we're made two year this year. So that gives you said, you know guideposts for how to think about it from from the way that we've approached it so far understood. Yeah, and you've got a lot of insulation to the bottom line from the from the impacts from Cove. It's so I'll leave it Thursday.
Thank you very much. Thank you Stephen.
Hi guys, good morning. Hey, good morning. So what extent is wind repowering at any responsible for or you know contributing to the ability to avoid drugs over the next day year and half or two years certainly a positive as we I think we announce these repairing opportunities, you know at or near the investor conference last year and have planned for it in terms of how we would Finance it and have the tax Equity lined up to to to be able to finance that going forward. It's certainly a positive that will impact results for this year. It's about $25 million dollars worth of Kathy or so as we previously highlighted. So certainly a contributor. I'm also a contributor where the other Acquisitions that any P made last year as well as the recapitalizations that we executed on. So it's the Confluence of birth.
Positions both from energy resources as well as third parties as well as the organic opportunities. So it's a it's a 3/4 in this case. I think last quarter you also talked about the possibility of additional and twenty twenty four, you know due to the extension. Have you ever Quantified any of that what that opportunity Maybe?
We haven't talked about additional repowering opportunities with respect to next Energy Partners as we previously highlighted, you know from a repowering opportunity. We thought the opportunity was particularly strong through the end of 2020 to take advantage of the full hundred percent PTC re-upping but actually this this quarter we're announcing some repowering opportunities and twenty Twenty-One that will take advantage of the the 80% PTC. So so it's a, you know, very positive, you know opportunity for us.
Right gotcha. And one last question about natural gas vs. Renewables. I mean, you know natural gas has had a a it was gotten a lot cheaper. I'm just wondering is how how does show me how to Renewables stack up in a basis these days against also fuels
I'm sorry Michael. How does the L Series for a renewable stack up against against fossil fuels right at fossil fuel prices are really come down, right? They definitely have come down but you would hope that somewhat making a long-term planning decision will think about prices over a long period of time and as we highlight it for FPL 10-year, you know site plan and we looked at what the costs are anticipating at Florida Power and Light and and Gulf Power together, you know solar paired with battery storage are the least cost form of generation and we've kind of you know, put our but all tend to paper and and included that in our 10-year site plan and have now removed the two combined cycle natural gas plants that we had previously in the forecast in the mid 2020s took action of where we think costs are from our customers standpoint. Again, they operate in in many different jurisdictions in some cases wind will be particularly attractive in some cases. It's solar but if you can log
the context the dollar per megawatt-hour cost that we've continued to provide which with incentives are in the in the you know for wind anywhere in the in the fifteens too, you know, very
So twenties for wind even in low wind resource areas. And then for solar in the thirty-plus just dollar megawatt hour with incentives and then post incentives, you know continue to be very attractive than 20 to 30 and 32 $40 a megawatt-hour range. So very cost competitive even with where we think the the fuel complex pricing is but also, you know, remember that Colby and some natural some nuclear facilities are our primary, you know comparisons and that hasn't changed dramatically. Yeah and Michael this is John one thing I would add to that is often as oil prices have come down where it counts have come down in the Permian which means there's a lot less Associated gas which has you know, really actually helped natural gas prices and we've seen a bit of an uptick in natural gas prices particularly recently. And so when we are out originating new Renewables, we really have not seen competition off.
Our next question comes from Michael Weinstein with Credit Suisse, please go ahead.
From gas-fired units, you know for that reason reason they still remain kind of in that 30 to $40 a megawatt-hour range versus, you know win which is you know, still I you know in the teens and most parts of the country and then solar kind of in that in that mid-20s range. So very very competitive when you look at Renewables vs. Gas fired generation, and then the last thing I add is just speakers member gas-fired peakers not only are Target's for new Renewables, but also for battery battery storage costs have come down such that, you know, you mentioned the large stand-alone storage build that we have the billion dollars going in and twenty one. There is a significant opportunity in almost every part of the country were batteries are now more economic than gas-fired peakers. Even at today's natural gas prices good news. Thank you.
Our last question will come from Michael Anthony's with Goldman Sachs, please go ahead you guys for taking my question. I don't know if this one's for Jim or John and I know you come in fact that your own renewable development plans remain on track on and schedule in finance.
You have a great lens into the industry overall, obviously.
Can you talk about where you think for the industry maybe not for next era where the biggest challenges are occurring are they in financing of projects meaning tax Equity money market or they in the supply chain. Is it is it more wind vs. Solar supply chain issues. Is it more kind of keeping sites or or potentially missing Safe Harbor Freight? Can you just talk about the industry perspective which are seeing in the competitive landscape? Even if these aren't think that aren't necessarily impacting that Sarah.
Sure. I I think the first one would be supply chain and Rebecca talked about that for a minute, but given the size of our spend, you know across the complex being right around I you know north of Thirteen billion dollars. We are almost always our suppliers, you know largest customer for not there where their second largest in the world. So if there are minor disruptions that come that come up we're able to Pivot to other manufacturing facilities that that particular vendor May own and so we don't see the same impact that perhaps a smaller player whether it's in wind and solar would see and so while they they may see supply chain disruptions. We we don't need just given the size and the sophistication and the buying power that we have so that's the first one supply chain is something that I would look at for other smaller players. The second one is access wage.
You know again, you know, we always get first dibs and first allocations on tax Equity financing in the script remarks. I think we already said we have all of our tax money he needs for 2020 fully allocated that is not the case necessarily for smaller developers smaller developers might struggle particularly to the extent that that banks have less about a taxable income notwithstanding the 5-year net operating loss carry-back. That was that was passed. I think in the first or second Federal restructuring, so we're very well positioned off a tax Equity standpoint. Whereas maybe smaller developers might not be and so I think for those two reasons, it could create project m&a opportunity that is where the Warriors some of the smaller developers need a rescue plan because they're going to be running up against issues at the end of the year. I think they also it's not only on execution in terms of meeting. Yep.
C o d s or we don't see issues and we have the ability to navigate around them. But as customers now are looking for who to select to build em. There's a PTC declining clock. There's an ITC declining clock they want certainty they want confidence that that developers going to be around to be able to actually actually deliver and so in our appease and just in customer interactions, you know, we're starting to see that theme play out more and more and so we feel really good about our ability to execute and we feel very bullish about our origination activities going forward for those reasons, which not dead might not be the case of what you would hear from a from a smaller developer for those reasons.
John thank you for that one quick follow-up in the supply chain when you're seeing it kind of across the industry obviously not impacting. You guys are the issues greater or smaller wage developers or smaller solar like where where he seems the bottlenecks within the industry more on the supply chain side. I probably a little bit of both, you know, it depends on where they're sourcing from an office which OEM you know that they're using some oems have
more alternatives to parts of the country that are less parts of the world that are that are less affected. But I think you're going to see disruptions on both wind and soul for smaller developers, you know, we have always made selections around our OEM providers and around our panel providers which are pretty diverse inverter off of that nature that give us a lot of flexibility but a smaller developer maybe behold into one particular OEM that might not have the same amount of flexibility or 1,000 flyer given how small their build is that might have a disruption without the ability to Pivot to somebody else. Got it. Thank you John much appreciated.
You're welcome, Michael. Thank you.
This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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