NEE

BEPC is caught up in the utilities selloff triggered by NEP and NEE. They face some of the same issues as NEP, namely their reliance on floating-rate project debt narrowing their interest rate spread as reference rates like SOFR rise. This means it has recently become much more expensive for them to borrow the money to fund power development projects, relative to the cash flows that those completed projects would provide. However, BEPC does point out in recent presentations (slide 50)that ~70% of their revenues are from power purchase agreements …