NextEra Energy

NextEra operates a regulated utility plus wholesale power-generation model. Through Florida Power & Light, it earns a regulator-approved return on the capital invested in its electric infrastructure (rate base) — customers pay monthly bills for delivered electricity, and revenue is recognized as power is distributed. Separately, NextEra Energy Resources develops, owns, and operates wind, solar, and battery assets, selling the output under long-term power purchase agreements (PPAs) to utilities, corporations, and municipalities. Revenue here is recognized as electricity is delivered under contract. The structural economics are capital-intensive: the business earns a regulated return on the utility side and a contracted spread between construction cost and PPA pricing on the renewables side. Scale matters because NextEra can drive down equipment procurement and financing costs across its massive project pipeline, improving the return on invested capital for each new gigawatt built. The model is not subsidized by advertising, transactions, or software — it is built on physical infrastructure and contractual cash flows.