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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of derivative instruments in statement of financial position, fair value

Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the consolidated balance sheets.


	December 31, 2024
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,778	$	3,040	$	1,339	$	(4,032)	$	2,125
Interest rate contracts	$	—	$	577	$	—	$	(44)	533
Foreign currency contracts	$	—	$	—	$	—	$	(5)	(5)
Total derivative assets									$	2,653

FPL – commodity contracts	$	—	$	9	$	47	$	(16)	$	40

Liabilities:
NEE:
Commodity contracts	$	1,983	$	3,364	$	952	$	(3,557)	$	2,742
Interest rate contracts	$	—	$	284	$	—	$	(44)	240
Foreign currency contracts	$	—	$	104	$	—	$	(5)	99
Total derivative liabilities									$	3,081

FPL – commodity contracts	$	—	$	5	$	13	$	(11)	$	7

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	879
Noncurrent derivative assets(c)									1,774
Total derivative assets									$	2,653
Current derivative liabilities									$	1,073

Noncurrent derivative liabilities									2,008
Total derivative liabilities									$	3,081

Net fair value by FPL balance sheet line item:
Current other assets									$	31
Noncurrent other assets									9
Total derivative assets									$	40
Current other liabilities									$	3
Noncurrent other liabilities									4
Total derivative liabilities									$	7

______________________

(a)Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables – net and accounts payable, respectively.

(b)Reflects the netting of approximately $154 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $321 million in margin cash collateral received from counterparties.


	December 31, 2023
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,640	$	4,741	$	1,925	$	(6,171)	$	3,135
Interest rate contracts	$	—	$	304	$	—	$	81	385
Foreign currency contracts	$	—	$	—	$	—	$	—	—
Total derivative assets									$	3,520

FPL – commodity contracts	$	—	$	1	$	29	$	(3)	$	27

Liabilities:
NEE:
Commodity contracts	$	3,796	$	4,664	$	974	$	(6,531)	$	2,903
Interest rate contracts	$	—	$	553	$	—	$	81	634
Foreign currency contracts	$	—	$	49	$	—	$	—	49
Total derivative liabilities									$	3,586

FPL – commodity contracts	$	—	$	13	$	5	$	(3)	$	15

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,730

Noncurrent derivative assets(c)									1,790
Total derivative assets									$	3,520
Current derivative liabilities(d)									$	845

Noncurrent derivative liabilities									2,741
Total derivative liabilities									$	3,586

Net fair value by FPL balance sheet line item:
Current other assets									$	13
Noncurrent other assets									14
Total derivative assets									$	27
Current other liabilities									$	9
Noncurrent other liabilities									6
Total derivative liabilities									$	15

______________________

(b)Reflects the netting of approximately $148 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $307 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $815 million in margin cash collateral paid to counterparties.

Fair Value Inputs, Assets, Quantitative Information

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2024 are as follows:


Transaction Type	Fair Value at December 31, 2024				Valuation Technique(s)	Significant Unobservable Inputs	Range			Weighted-average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	423	$	401	Discounted cash flow	Forward price (per MWh(b))	$(3)	—	$233	$52
Forward contracts – gas	296		46		Discounted cash flow	Forward price (per MMBtu(c))	$1	—	$16	$4
Forward contracts – congestion	53		39		Discounted cash flow	Forward price (per MWh(b))	$(49)	—	$22	$—
Options – power	9		6		Option models	Implied volatilities	78%	—	360%	186%

Options – primarily gas	100		102		Option models	Implied correlations	56%	—	100%	99%
						Implied volatilities	15%	—	150%	52%
Full requirements and unit contingent contracts	209		203		Discounted cash flow	Forward price (per MWh(b))	$20	—	$297	$76
						Customer migration rate(d)	—%	—	31%	1%
Forward contracts – other	249		155
Total	$	1,339	$	952

______________________

(a)Unobservable inputs were weighted by volume.

(b)Megawatt-hours

(c)One million British thermal units

(d)Applies only to full requirements contracts.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The sensitivity of NEE's fair value measurements to increases (decreases) in the significant unobservable inputs is as follows:

Significant Unobservable Input

Position

Impact on
Fair Value Measurement

Forward price

Purchase power/gas

Increase (decrease)

Sell power/gas

Decrease (increase)

Implied correlations

Purchase option

Decrease (increase)

Sell option

Increase (decrease)

Implied volatilities

Purchase option

Increase (decrease)

Sell option

Decrease (increase)

Customer migration rate

Sell power(a)

Decrease (increase)

————————————

(a)Assumes the contract is in a gain position.

Reconciliation of changes in the fair value of derivatives measured based on significant unobservable inputs

The reconciliation of changes in the fair value of derivatives that are based on significant unobservable inputs is as follows:


	Years Ended December 31,
	2024				2023				2022
	NEE		FPL		NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	951	$	24	$	(854)	$	9	$	170	$	8
Realized and unrealized gains (losses):
Included in operating revenues	339		—		2,792		—		(2,343)		—

Included in regulatory assets and liabilities	49		49		23		23		158		158
Purchases	161		—		412		—		542		—

Settlements	(998)		(27)		(1,521)		(11)		992		(157)
Issuances	(128)		—		(139)		—		(362)		—

Transfers in(a)	20		(12)		(129)		1		(4)		—
Transfers out(a)	(7)		—		367		2		(7)		—
Fair value of net derivatives based on significant unobservable inputs at December 31	$	387	$	34	$	951	$	24	$	(854)	$	9
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	(25)	$	—	$	1,482	$	—	$	(1,162)	$	—

______________________

(a)Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data.

Derivative instruments, gain (loss) in statement of financial performance

Gains (losses) related to NEE's derivatives are recorded in NEE's consolidated statements of income as follows:


	Years Ended December 31,
	2024		2023		2022
	(millions)

Commodity contracts(a) – operating revenues (including $8 unrealized gains, $2,502 unrealized gains and $2,346 unrealized losses, respectively)	$	97	$	2,513	$	(3,297)

Foreign currency contracts – interest expense (including $58 unrealized losses, $81 unrealized gains and $53 unrealized losses, respectively)	(71)		(62)		(61)

Interest rate contracts – interest expense (including $542 unrealized gains, $634 unrealized losses and $1,021 unrealized gains, respectively)	1,349		(226)		1,221
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	2		(1)		(5)
Foreign currency contracts	(3)		(2)		(3)
Total	$	1,374	$	2,222	$	(2,145)

______________________

(a)For the years ended December 31, 2024, 2023 and 2022, FPL recorded gains of approximately $50 million, $5 million and $211 million, respectively, related to commodity contracts as regulatory liabilities on its consolidated balance sheets.

Net notional volumes

NEE and FPL had derivative commodity contracts for the following net notional volumes:

December 31, 2024

December 31, 2023

Commodity Type

NEE

FPL

NEE

FPL

(millions)

Power

(189)

MWh

—

(167)

MWh

—

Natural gas

(1,131)

MMBtu

503

MMBtu

(1,452)

MMBtu

717

MMBtu

Oil

(25)

barrels

—

(42)

barrels

—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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