Texas Storm Cost NextEra $180 Million in Uncollected Revenue
(Bloomberg) -- NextEra Energy Inc., the world’s biggest investor-owned generator of wind and solar power, said it wasn’t able to collect $180 million in revenue following the Texas energy crisis that left the state’s power market -- and many of its power providers -- in financial distress.
Subsidiary NextEra Energy Resources LLC said in a first-quarter filing Friday that the revenue related to “reimbursable expenses from a counterparty that are deemed not probable of collection.” The company didn’t identify the counterparty.
The deep freeze that gripped Texas in February knocked nearly half of Texas’s generation offline, pushed many companies to the brink of bankruptcy and left the state’s power market facing a nearly $3 billion financial shortfall. During the storm, NextEra faced some of the biggest outages, losing more than 11.7 gigawatts of electricity generation, according to data from the grid operator.
Still, financial losses from the storm appeared negligible, with NextEra posting $1.66 billion in net income in the first quarter. NextEra Energy Partners, the company’s renewable unit that’s separately traded, said in another financial filing that it saw pipeline services revenue increase by $30 million in the first quarter because of the storm.
Separately, NextEra reported about $152 million of bad debt expense also related to the February storm.
A NextEra representative didn’t respond to messages seeking comment.
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