By Laila Kearney, Seher Dareen

(Reuters) – NextEra Energy is evaluating the potential restart of its Duane Arnold nuclear power plant in Iowa, according to company executives on Wednesday.

Growing energy demand from AI data centers and the electrification of buildings and transportation has significantly impacted the electric utility sector, resulting in unprecedented power contracts.

NextEra is assessing the condition of the Duane Arnold nuclear power plant, engaging with regulators at the Nuclear Regulatory Commission. CEO John Ketchum expressed interest in recommissioning the plant, noting that the boiling water reactor design simplifies the restart process compared to other systems.

Currently, two U.S. nuclear power plants, including Three Mile Island in Pennsylvania, are in the process of being restarted. Historically, no fully shut nuclear plant has been revived, but Ketchum's optimism stems from the recent developments which he believes could make the process more feasible and cost-effective.

NextEra, which encompasses the largest renewables company and one of the biggest regulated electric utilities in the U.S., has entered into agreements to develop 10.3 gigawatts of renewable energy and storage.

The company's third-quarter profits surpassed Wall Street estimates, buoyed by its renewables sector, while the S&P index for utilities saw an 18.4% increase. NextEra Energy Resources reported a backlog of 24 gigawatts in Q3, up from nearly 22.6 GW in Q2. Florida Power & Light, a regulated utilities segment, reported a net income increase to $1.29 billion.

However, NextEra's total quarterly revenue of $7.57 billion fell short of the expected $8.10 billion. The Florida-based company kept its 2024 adjusted earnings-per-share forecast steady, with expectations for 2025 earnings in the range of $3.45 to $3.70.

On an adjusted basis, NextEra reported earnings of $1.03 per share, exceeding the estimate of 98 cents. NextEra Energy Partners announced plans to repower an additional 225 megawatts of wind facilities, totaling around 1.6 GW repowered by 2026, despite a reported loss of $40 million due to higher interest payments and operational losses, a drop from last year's net income of $53 million. Shares of the company declined by 11.5% in early morning trade.