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NextEra Unit to Cut Rates to Aid Users Amid COVID-19 Crisis
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NextEra Energy (NEE - Free Report) announced that its unit Florida Power & Light Company (“FPL”) has sought approval from the Florida Public Service Commission to lower electricity rates from May 1. FPL has plans to make a one-time decrease of around 25% for the typical residential customer bill (using 1,000-kWh on average). The company intends to pass on the benefits of lower fuel costs and help customers who are under significant financial distress on account of the coronavirus pandemic.
Previously in January, the company lowered its customer bill by 4%. If the proposed decline is approved by the commission, the average monthly bill of the typical residential customer of $99.90 in December 2019 will fall to nearly $74 per month in May 2020, making the utility bills nearly 30% lower than the U.S. average.
COVID-19 is Hurting but the Fight is On
The novel coronavirus pandemic is hurting millions of people financially and thousands of Americans are getting infected with each passing day. The outbreak of coronavirus has resulted in the shutdown of factories and other commercial activities in the United States, as a consequence millions are out of job and in financial distress. For the week ended Mar 21, jobless aid claims were nearly 3.3 million. The guidelines for social distancing will stay in place through Apr 30, which is not going to help millions of FPL’s customers.
The $2.2-trillion stimulus package is designed to provide assistance to millions of unemployed and tax payers who are in lower-income bracket to meet their financial obligations in the near term. In fact, the FPL’s decision to lower utility bill further from May will provide some relief to millions of customers.
Continuation of Services Despite Non-payment
As more and more people are forced to stay back at home, domestic electricity consumption has increased. Since 24X7 electricity supply is among the basic requirement, and will play an integral part in assisting the millions of customers to fight back the pandemic. In such a scenario, the utility service providers are ensuring continuation of services despite non-payment of dues. FPL is also assisting in providing payment extensions and is waiving late payment fees for customers who are under financial pressure due to the coronavirus-induced crisis.
A few more utilities like Duke Energy Corporation (DUK - Free Report) , American Electric Power (AEP - Free Report) , and Dominion Energy (D - Free Report) , among others, have decided to continue providing services even in the event of non-payment of dues.
Zacks Rank
NextEra Energy currently has a Zacks Rank #3 (Hold).
NextEra Energy’s shares have outperformed the industry in the past three months.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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NextEra Unit to Cut Rates to Aid Users Amid COVID-19 Crisis
NextEra Energy (NEE - Free Report) announced that its unit Florida Power & Light Company (“FPL”) has sought approval from the Florida Public Service Commission to lower electricity rates from May 1. FPL has plans to make a one-time decrease of around 25% for the typical residential customer bill (using 1,000-kWh on average). The company intends to pass on the benefits of lower fuel costs and help customers who are under significant financial distress on account of the coronavirus pandemic.
Previously in January, the company lowered its customer bill by 4%. If the proposed decline is approved by the commission, the average monthly bill of the typical residential customer of $99.90 in December 2019 will fall to nearly $74 per month in May 2020, making the utility bills nearly 30% lower than the U.S. average.
COVID-19 is Hurting but the Fight is On
The novel coronavirus pandemic is hurting millions of people financially and thousands of Americans are getting infected with each passing day. The outbreak of coronavirus has resulted in the shutdown of factories and other commercial activities in the United States, as a consequence millions are out of job and in financial distress. For the week ended Mar 21, jobless aid claims were nearly 3.3 million. The guidelines for social distancing will stay in place through Apr 30, which is not going to help millions of FPL’s customers.
The $2.2-trillion stimulus package is designed to provide assistance to millions of unemployed and tax payers who are in lower-income bracket to meet their financial obligations in the near term. In fact, the FPL’s decision to lower utility bill further from May will provide some relief to millions of customers.
Continuation of Services Despite Non-payment
As more and more people are forced to stay back at home, domestic electricity consumption has increased. Since 24X7 electricity supply is among the basic requirement, and will play an integral part in assisting the millions of customers to fight back the pandemic. In such a scenario, the utility service providers are ensuring continuation of services despite non-payment of dues. FPL is also assisting in providing payment extensions and is waiving late payment fees for customers who are under financial pressure due to the coronavirus-induced crisis.
A few more utilities like Duke Energy Corporation (DUK - Free Report) , American Electric Power (AEP - Free Report) , and Dominion Energy (D - Free Report) , among others, have decided to continue providing services even in the event of non-payment of dues.
Zacks Rank
NextEra Energy currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
NextEra Energy’s shares have outperformed the industry in the past three months.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>