Strings Attached: How utilities use charitable giving to influence politics and increase investor profits

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NextEra Energy

NextEra Energy is an international utility company based in Florida. It serves approximately 4.9 million customer accounts in Florida via its retail utility, Florida Power and Light.

Basic Facts:

1. EPI estimate of NextEra Energy’s total charitable giving in most recent 5 years (2013-2017): $44,020,196. (1)
2. Name of Foundation: NextEra Energy Foundation
3. NextEra Energy Foundation Giving (2013-2017): $10,007,430
   • 2017: $3,407,214
   • 2016: $1,907,431
   • 2015: $1,706,528
   • 2014: $1,563,367
   • 2013: $1,492,890
4. Corporate Charitable Giving (2013-2017)*
   • Sum of total giving according to NextEra’s annual Corporate Responsibility Executive Digest: $42,900,000
     1. 2017: $13,000,000. (2)
     2. 2016: $15,000,000. (3)
     3. 2015: $8,900,000. (4)
     4. 2014: $6,000,000. (5)
     5. 2013: Unknown
   • Sum of total charitable giving in most recent 5 years according to FERC Form 1 filings: $19,669,170
     • 2017: $8,062,925
     • 2016: $1,964,397
     • 2015: $4,575,751
     • 2014: $2,945,901
     • 2013: $2,120,196
5. NextEra Energy Foundation Executive Director:
   1. None listed
6. NextEra Energy Foundation Board of Directors:
   • John W. Ketchum, President, NextEra Energy Partners
   • Rebecca J. Kujawa, Chief Financial Officer and Executive Vice President of Finance, NextEra Energy
   • James L. Robo, President and CEO, NextEra Energy
   • Charles E. Sieving. Executive Vice President and General Counsel, NextEra Energy
   • Eric Silagy, President and CEO, Florida Power & Light

• *NextEra’s giving totals from corporate responsibility reports differ from giving reported to FERC as well as information currently posted on its website (screenshot below). For example, the 2016 Corporate Sustainability Report stated that employees and the company donated $15 million in 2016; NextEra’s website states the figure is just over $12 million, and its FERC Form 1 donations are listed at nearly $2 million. The reason for the discrepancies is not clear, although some of the reported totals seemed to also include donations made through NextEra’s employee donation program.

Examples of NextEra using charitable giving to manipulate policy:

Energy Efficiency

In June of 2019, Broward County was considering a resolution that would recommend that the Public Service Commission (PSC) set meaningful energy efficiency goals for the investor-owned utilities in Florida, which would include Florida Power and Light (FPL). The resolution was in relation to the 2019 Florida Energy Efficiency and Conservation Act (FEECA) proceedings which were currently underway, and in which FPL had proposed a goal of nearly zero.

FPL was not supportive of higher efficiency goals, such as the ones suggested in the resolution. When the item was presented for public comment and discussion at the County Commission meeting, the majority of the speakers who signed up to speak on the topic were either employed by FPL or connected to organizations that receive some form of support from FPL, including Broward Legal Aid and the Broward Urban League.

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Those speakers stated that energy efficiency goals would make electric rates go up, and so asked the board not to approve the resolution. As a result, the resolution was voted to be deferred until the next meeting two months later before the sponsor of the resolution, Commissioner Nan Rich (Former Senator), was allowed to present her thoughts on the merits of energy efficiency goals. FPL external affairs manager Jouliet Rhoulac argued that energy efficiency programs as outlined in the resolution would especially harm low-income customers, despite section four of the resolution specifically addressing this concern, stating that programs should be designed in a manner that assist low- to moderate-income households. The resolution did ultimately pass two months later, with one no vote.

2016 Rate Increase

In 2016, Florida Power and Light came before the Public Service Commission (PSC) requesting a $1.3 billion dollar rate increase. As part of the rate case process, the PSC held a series of public hearings around the state to receive public comment for its consideration. All public comments at these hearings become part of the official case docket and had to be considered by the PSC. Several FPL customers connected to community and charity groups that receive support from the NextEra Energy Foundation and from FPL itself lined up at each hearing to speak out in support of FPL, while the vast majority of the public comments, as well as the comments submitted to the docket in writing from customers, spoke out explicitly against the increase. The majority of customers who spoke in favor of the rate increase also indicated that they were asked by FPL, or by a friend or family member who worked at FPL, to attend and share their comments. At the Fort Lauderdale hearing, Marlene Santos, a Vice President of Customer Service at FPL, opened the hearing with a statement explaining the $1.3 billion dollar rate increase. In her comments, she emphasized the vast amount of work that FPL does in the community, citing partnerships with local public schools, a non-profit called Young At Art Museum, and local libraries.

At the Fort Myers hearing, Carrie Blackwell Hussey, a United Way employee, was careful to include the phrase “I can’t speak to any rate hikes” but shared that United Way and FPL enjoyed a “terrific partnership.” According to the 990 forms for the NextEra Foundation alone, not counting any direct contributions from NextEra Energy, that partnership involved nearly $2 million dollars in contributions to United Way chapters over the five year period of 2013-2017. The bulk of the contributions went to the Palm Beach and Broward County chapters, with their annual amount consistently being reported as $100,000 to Palm Beach and $85,000 to Broward. NextEra Foundation president and FPL CEO Eric Silagy is also a regular speaker at United Way galas and events.

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Table 1: Contributions from NextEra Foundation to multiple Florida United Way chapters, 2013 – 2017, as reported in NextEra Foundation 990 forms  

Year	Amount
2013	$432,000
2014	$359,000
2015	$351,800
2016	$365,200
2017	$352,000
5 Year Total to United Way Foundation	$1,860,500

There are many additional examples of charities and non-profit organizations who have received monetary support from FPL attending the rate hearings and providing supportive comments. The Office of Public Counsel often asked speakers to identify if they received support from FPL and if they were asked to attend by FPL, although those questions were not asked with 100% consistency. Thanks to the questions from the Office of Public Counsel, the public was able to hear that many organizations present in support of FPL received some form of funding or support from FPL.

There are many additional examples of charities and non-profit organizations who have received monetary support from FPL attending the rate hearings and providing supportive comments. The Office of Public Counsel often asked speakers to identify if they received support from FPL and if they were asked to attend by FPL, although those questions were not asked with 100% consistency. Thanks to the questions from the Office of Public Counsel, the public was able to hear that many organizations present in support of FPL received some form of funding or support from FPL. 

Several Chamber of Commerce chapters were well represented, mostly present to remind the PSC of the charitable work that FPL does, while declining to explicitly state their support of the rate increase. FPL CEO Eric Silagy is a board member of the Florida Chamber of Commerce Foundation, and FPL made a $150,000 commitment to the organization in addition to $100,000 contributions in 2016 and 2017, as reported on the NextEra Foundation 990. Dennis Grady, CEO of the Chamber of Commerce of Palm Beaches, stated his support of FPL and thanked FPL for its support while noting that many of the leadership roles on the chamber are filled by FPL employees. When the rate hearing took place in Miami, the Coral Gables chapter president Mark Towbridge thanked FPL for its sponsorship of the annual Commerce Education Breakfast and stated that FPL supported more than 1,500 non-profits, donating $5.7 million to these efforts, as well as an additional $3.9 million from employees.

FPL received additional supportive testimony from smaller, local charitable efforts that receive financial support from the utility throughout the rate hearings. Seafarers House is one example. Ron Perkins, Chaplain at the Seafarer’s House, a non-profit ministry that works with seafarers in the port area, stated that he had been made aware of the rate increase hearing by FPL employees and that he was there to share his support of the proposed rate increase. Perkins verified that FPL directly supports their organization financially in his testimony. In Lee County, non-profit Community Cooperative is another example. Community Cooperative Director of Development Stefanie Ink spoke out in support of the rate increase explicitly, stating that she was providing comment on behalf of the non-profit. She stated that FPL has been a great supporter of theirs. She clarified that this included financial support.

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Footnotes

(1) Estimate based on 990s and CSR reports 2014 – 2017 (CSR methodology for totals is not clear but may include Foundation giving, so the total range would be between 44,020,196 – 54,027,626, depending on whether foundation giving is included or not); FERC Form 1 for 2013

(2) NextEra disclosed “more than $13 million”

(3) NextEra disclosed “$15 million”, did not indicate if this is rounded figure

(4) NextEra disclosed $8.9 million in “sponsorships and donations” in its “Global Reporting Initiative Index”

(5) NextEra disclosed “Almost $6 million”

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