NextEra Energy, Inc. (NEE), Dominion Resources, Inc. (D) – This Week in Utilities: 3 Dividend Stocks You Need to Watch

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Florida gets its gas fill

NextEra Energy, Inc. (NYSE:NEE) announced this week that it is investing around $3 billion with Spectra Energy Corp. (NYSE:SE) to bring Florida its third major natural gas pipeline. According to NextEra Energy, Inc. (NYSE:NEE), Florida’s current pipelines are near capacity, making its new project crucial to Florida — and profitable for NextEra Energy, Inc. (NYSE:NEE).

Stretching from Alabama through Georgia to Florida, the pipeline will connect natural gas reserves to the Sunshine State, where more natural gas is used to generate electricity than any other state besides Texas.

NextEra Energy, Inc. (NYSE:NEE) is probably most known for its status as the nation’s largest producer of renewable energy. With more than 10,000 net MW of wind capacity, the title is well deserved. But this latest project once again highlights that the utility isn’t putting all its eggs in one basket. While it’s far from renewable, natural gas avoids costly environmental regulations and remains at a competitive cost compared with other energy sources. NextEra Energy, Inc. (NYSE:NEE) also noted in its announcement that it will contract pipeline capacity to other operations, adding a lucrative “tollbooth” business model to its operations.

The article This Week in Utilities: 3 Dividend Stocks You Need to Watch originally appeared on Fool.com is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Dominion Resources (NYSE:D) and Spectra Energy.

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