Thursday, October 21, 2010

NextEra Energy - More News, Little Value

Some news on Florida Power & Light (NEE -A/Baa1):

TALLAHASSEE -The 1st District Court of Appeal has denied Florida Power & Light Company's request for an emergency order to allow the Florida Public Service Commission to hear the company's issues without Commissioner Nathan Skop.

The denial issued late Wednesday means that an automatic stay on FPL matters applies to the entire four-member commission.

It appears that FPL's proposed rate case settlement and other issues on Tuesday's agenda will once again be deferred.
That could change if the court rules before Tuesday on FPL's request to bar Skop from hearing its cases, FPL spokesman Mark Bubriski said.
In September FPL asked the court to disqualify Skop, saying he cannot rule fairly when considering its business.
Skop, whose term ends in January, has blamed the fact the nominating council did not interview him for reappointment showed that "FPL owns state government. He has also said that the decision was "retaliation" and "payback" for his having voted to reject a $1.2 billion rate hike the company sought.

Personally, I don't think FPL will have a favorable outcome until Skop is gone and they present a realistic rate case.  Trying to blackmail the PUC with threats of stopping expansion is hardly a business plan.

I am not a big fan of the new regulatory environment in Florida and the relationship between NEE and the regulator.

NEE '19s trade 120/110
35s trade 103/olb

more or less on the screws - Don't see real value here.

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A student of the markets that has held portfolio management, analysis and trading positions for over 15 years.