NextEra Energy, Inc. President and CEO and NextEra Energy Partners, LP CEO John Ketchum issued the following statement regarding yesterday's decision by the U.S. Department of Commerce to initiate an anti-circumvention investigation into the importation of solar panels from select Asian countries.
"Yesterday, the U.S. Department of Commerce announced a decision to initiate an anti-circumvention investigation into the importation of solar panels from Malaysia, Vietnam, Thailand and Cambodia, thereby granting a recent petition filed by Auxin Solar, a small 60-employee solar panel assembler based in California.
"We are disappointed with the Commerce Department's decision to grant Auxin's request to investigate as we believe it has no merit. However, we are optimistic that the investigation will be resolved favorably and that no additional Antidumping and Countervailing Duties tariffs will be put in place.
"While some of NextEra Energy's solar and storage projects may be adversely impacted by the disruption this decision is expected to cause, we will work closely with our suppliers and customers to assess the potential impacts of this investigation and remain confident in our ability to arrive at acceptable mitigation measures.
"Notwithstanding yesterday's decision by the Department of Commerce, we are confirming that NextEra Energy's long-term financial expectations remain unchanged, subject to the usual caveats. For 2022, we continue to expect NextEra Energy's adjusted earnings per share to be in the range of $2.75 to $2.85. For 2023 through 2025, NextEra Energy expects to grow roughly 6% to 8% per year off the expected 2022 adjusted earnings per share. For 2023 through 2025, this translates to adjusted earnings per share ranges for NextEra Energy of $2.93 to $3.08, $3.13 to $3.33, and $3.35 to $3.60, respectively. We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in each of 2022, 2023, 2024 and 2025.
"Additionally, NextEra Energy Partners' long-term distribution per unit growth rate expectations remain unchanged. From a base of its fourth-quarter 2021 distribution per common unit at an annualized rate of $2.83 per common unit, NextEra Energy Partners continues to expect 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024, subject to the usual caveats."
NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards; the effects of non-qualifying hedges and unrealized gains and losses on equity securities held in NextEra Energy Resources, LLC's nuclear decommissioning funds and other than temporary impairments, none of which can be determined at this time. Adjusted earnings expectations also exclude the effects of NextEra Energy Partners, LP net investment gains, differential membership interests-related and an impairment charge and operating results related to NextEra Energy's investment in Mountain Valley Pipeline, LLC. In addition, adjusted earnings expectations assume, among other things, normal weather and operating conditions; supportive commodity markets; current forward curves; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; market demand for pipeline capacity; access to capital at reasonable cost and terms; divestitures to NextEra Energy Partners, LP; no acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.
NextEra Energy Partners' limited partner distribution expectations assume, among other things, normal weather and operating conditions; public policy support for wind and solar development and construction; market demand and transmission expansion support for wind and solar development; market demand for pipeline capacity; and access to capital at reasonable cost and terms. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.