NextEra Energy, Inc. (NEE) is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy. NextEra Energy owns Florida Power & Light Company (FPL), which is the largest electric utility in the United States. In January 2019, NEE acquired Gulf Power, an electric utility engaged in the generation, transmission, distribution, and sale of electric energy in Florida and one year later, in January 2021, FPL and Gulf Power merged, with FPL as the surviving entity. Following the merger, FPL now serves more than 5.6 million customers and supports more than 11 million residents across Florida with clean electricity.
NextEra Energy also owns a clean energy business, NextEra Energy Resources, LLC (NEER), which is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. In addition, NEER participates in natural gas, natural gas liquids and oil production through operating and non-operating ownership interests, and in pipeline infrastructure construction.
FPL and Gulf Power will continue to be separate operating segments of NEE through 2021.
NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL and NEER as well as Gulf Power, acquired by NEE in January 2019, and the Corporate and Other, which is comprised of the operating results of other business activities.
According to the Annual Report 2020, NEE's operating revenues amounted to $18.0 billion in 2020 compared to $19.2 billion in 2019 and $16.7 billion in 2018. NEE´s consolidated operating revenues decreased by $1.2 billion in 2020, primarily due to operating revenues decreased in the NEER segment.
NEER´s operating revenues for 2020 decreased from $1,807 million in 2019 to $531 million in 2020, resulting in a decrease of $1,276 million or 71% primarily due to the impact of non-qualifying commodity hedges (approximately $244 million of losses during 2020 compared to $342 million of gains for 2019), and lower revenues from existing generation assets of $260 million primarily related to lower nuclear revenues, due to the closure of Duane Arnold in August 2020 and a refuelling outage at the Seabrook nuclear facility, as well as the sale of the Spain projects.
Regarding FPL segment, which obtains its operating revenues primarily from the sale of electricity to retail customers, FPL's operating revenues decreased by $530 million in 2020, primarily related to lower fuel cost recovery revenues of $637 million and $66 million in lower storm-related revenues.
Net income attributable to NEE amounted for $2,919 million in 2020 compared to $3,769 million in 2019 and was lower by $850 million or by 23%. Net income attributable to NEE decreased, primarily due to lower results at NEER, partly offset by higher results at FPL, Gulf Power and Corporate and Other.
Earnings per share attributable to NEE was $1.48 in 2020 compared to $1.94 in 2019. However, for the five years ending December 31, 2020, NEE delivered a total shareholder return of approximately 237.6%, compared to 161.5% for the five years ending December 31, 2019.
Segmentally, FPL's increase in net income in 2020 by $316 million or 13% from $2,334 million to $2,650 million was primarily driven by continued investments in plants in service and other property. The increase was primarily driven by higher earnings from investments in plants in service and other property. Such investments grew FPL's average retail rate base by approximately $3.9 billion in 2020 and reflect, among other things, solar generation additions and ongoing transmission and distribution additions.
FPL’s service area was impacted by Hurricane Dorian in 2019 and by Hurricane Isaias and Tropical Storm Eta in 2020. FPL determined that it would not seek recovery of the Hurricane Dorian, Hurricane Isaias and Tropical Storm Eta storm restoration costs through a storm surcharge from customers and instead recorded costs as storm restoration costs in NEE’s and FPL’s consolidated statements of income.
NEER's net income results decreased in 2020 from $1,807 million to $531 million, or by 71%, primarily driven by an impairment charge related to its investment in Mountain Valley Pipeline, unfavourable non-qualifying hedge activity, the absence of NEP investment gains. For comparison, net income results 2019 decreased by 62% from $4.7 billion in 2018 to $1.8 billion in 2019. However, in 2020 NEER added approximately 2,299 MW of new wind generating capacity, 1,412 MW of wind repowering generating capacity and 625 MW of solar generating capacity in the U.S. and increased its backlog of contracted renewable development projects.
Gulf Power's net income increased by $58 million or 32% from $180 million to $238 million, primarily related to lower operating expenses. Operating expenses decreased by $135 million in 2020, primarily related to decreases in fuel and operating and maintenance (O&M) expenses, as well as the absence of 2019 acquisition-related costs. In September 2020, Gulf Power's service area was impacted by Hurricane Sally and Gulf Power recorded estimated recoverable storm restoration costs of approximately $206 million.
Corporate and Other's net income results increased by $52 million during 2020, due primarily to lower net losses of approximately $130 million associated with non-qualifying hedge activity.
On December 31, 2020, NEE's total net available liquidity was approximately $10.9 billion compared to $8.5 billion in 2019 and $7.0 billion in 2018, representing an increase of 28% and 21% over the respective years.
NEE´s goodwill amounted to $4,254 million in 2020 compared to$4,204 million in 2019 and $891 million at the end of 2018, representing an increase of 1% and 474%, respectively. The drastic increase of the NEE´s goodwill from 2018 to 2019 was driven by the acquisition of Gulf Power in 2019.