FPL GroupFPL

Morningstar Rating

Stock Research and Analysis

by Ryan McLean

FPL Group's regulated Florida utility should see above-average long-term demand growth, while its merchant generation business is expanding boldly into wind generation throughout the country. A sharp deterioration in Florida's regulatory environment, Read more

Bulls Say

Florida enjoys above-average long-term customer and usage growth. The firm's large mix of residential users tend to be less price-sensitive than industrial users and less able to pursue self-generation.

NextEra has benefited from the federal tax credit program for wind generation and plans to continue to capitalize on this recently extended incentive by building additional wind capacity.

The frequency and severity of hurricanes in Florida have increased push to invest in storm-preparation initiatives, giving the firm additional rate base expansion potential.

NextEra is geographically diversified and employs a low-cost generation fleet that includes several wind and nuclear facilities. Read more

Bears Say

Florida's regulatory environment has taken a sharp turn for the worse after state regulators set the company's allowed return on equity at an industry-lagging 10%.

Ongoing economic malaise bodes poorly for both of FPL Group's segments in the near term.

NextEra's economic viability depends in part on federal wind production tax credits that are not guaranteed in the long term. Read more

Strategy

To diversify its fuel base, FP&L is expanding its clean-coal fleet and adding to its gas-fired generation capacity. NextEra is seeking to strengthen its merchant generation platform through the continued Read more

Management

CEO Lewis Hay joined FPL Group in 1999 as CFO and was promoted to president of FPL Energy in 2000. Before joining FPL, Hay was part of the executive team at U.S. Foodservice and served as a management consultant at Mercer. Under Hay's leadership, FPL Read more

Profile

FPL Group is a leading electricity provider whose regulated segment, FP&L, distributes power to 4.4 million customers in Florida. Consolidated generation capacity, which Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

How One Utility Outshines
Watch more