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Risks
1. Retail Competition Risk: Retail competition risk is a concern for NextEra since customers have the option to choose from a variety of energy providers.
2. Regulatory Risk: NextEra is subject to regulatory risks as it operates in a highly regulated industry. Changes in laws or government policies such as pricing, taxation, and environmental regulation could impede the company's ability to generate revenue.
3. Market Price Risk: Market price risk arises from the volatility of the prices of electricity and natural gas. Changes in prices can impact the company's revenues and profitability.
4. Operating Risk: Operating risks refer to the risks associated with natural disasters, operational complexity, labor disputes, and legal and IT security.
5. Cybersecurity Risk: Cybersecurity is a major risk for NextEra as the company's electric grid is vulnerable to cyber-attacks.
6. Credit Risk: Credit risk is linked to the inability of the company's customers to pay their bills, which could lead to financial losses for NextEra.