By Laila Kearney, Seher Dareen
(Reuters) -NextEra Energy is conducting engineering studies and speaking with federal regulators about the possible restart of its Duane Arnold nuclear power plant in Iowa, company executives said on Wednesday.
Growing power demand from AI data centers, and the electrification of buildings and transportation, has propelled the country’s electric utility industry and led to unprecedented power contracts.
NextEra is assessing the condition of its Duane Arnold nuclear power plant in Iowa and speaking with regulators with the Nuclear Regulatory Commission, NextEra CEO John Ketchum said on a company earnings call.
“We’re very interested in recommissioning the plant,” said Ketchum, adding that the site uses a boiling water reactor, which can be simpler than other systems to revive.
Two U.S. nuclear power plants, including Three Mile Island Pennsylvania, are currently in the process of being restarted. A fully shut nuclear plant has never been revived.
“That gives us optimism of being able to do this at an attractive price and without as much risk,” Ketchum said.
NextEra, which includes the world’s largest renewables company and one of the biggest U.S. regulated electric utilities, has also entered into “incremental framework agreements” with Fortune-50 to develop 10.3 gigawatts renewable energy and storage.
The company’s third-quarter profit beat Wall Street estimates on Wednesday, helped by strength in its renewables unit. The S&P index tracking utilities jumped 18.4% in the third quarter, compared to a 5.5% rise in the S&P 500.
NextEra’s renewables business, NextEra Energy (NYSE:NEE) Resources, projected a backlog of 24 gigawatts (GW) in the third quarter, up from nearly 22.6 GW in the second quarter.
The company’s regulated utilities business, Florida Power & Light, reported net income of $1.29 billion, compared with $1.18 billion a year earlier.
NextEra’s overall quarterly revenue of $7.57 billion, however, missed estimates of around $8.10 billion, according to analysts’ estimates compiled by LSEG.
The company, which is based in Florida, maintained its 2024 adjusted earnings-per-share forecast. Executives said they expect EPS in 2025 to be in a range of $3.45 to $3.70.
On an adjusted basis, NextEra earned $1.03 per share in the quarter, compared with estimate of 98 cents, according to data compiled by LSEG.
NextEra Energy Partners, a unit of the company created to acquire, manage and own contracted energy projects, said it would repower an additional 225 megawatts (MW) of wind facilities, bringing the total backlog of wind repowerings to around 1.6 GW through 2026.
However, the unit reported a loss of $40 million due to higher interest payments and a loss on some continuing operations, compared to year-ago net income of $53 million. Its shares were down 11.5% in early morning trade.