Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Financial assets and liabilities and other fair value measurements

NEE's and FPL's financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:

	December 31, 2011
	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting(a)			Total
	(millions)
Assets:
Cash equivalents:
NEE - equity securities	$	159	$	—		$	—	$	—		$	159
FPL - equity securities	$	11	$	—		$	—	$	—		$	11
Special use funds:
NEE:
Equity securities	$	709	$	1,206	(b)	$	—	$	—		$	1,915
U.S. Government and municipal bonds	$	508	$	167		$	—	$	—		$	675
Corporate debt securities	$	—	$	516		$	—	$	—		$	516
Mortgage-backed securities	$	—	$	511		$	—	$	—		$	511
Other debt securities	$	—	$	47		$	—	$	—		$	47
FPL:
Equity securities	$	128	$	1,056	(b)	$	—	$	—		$	1,184
U.S. Government and municipal bonds	$	458	$	134		$	—	$	—		$	592
Corporate debt securities	$	—	$	359		$	—	$	—		$	359
Mortgage-backed securities	$	—	$	434		$	—	$	—		$	434
Other debt securities	$	—	$	32		$	—	$	—		$	32
Other investments:
NEE:
Equity securities	$	4	$	—		$	—	$	—		$	4
U.S. Government and municipal bonds	$	8	$	—		$	—	$	—		$	8
Corporate debt securities	$	—	$	43		$	—	$	—		$	43
Mortgage-backed securities	$	—	$	33		$	—	$	—		$	33
Other	$	5	$	5		$	—	$	—		$	10
Derivatives:
NEE:
Commodity contracts	$	2,448	$	3,478		$	1,071	$	(5,477	)	$	1,520	(c)
Interest rate swaps	$	—	$	37		$	—	$	—		$	37	(c)
Foreign currency swaps	$	—	$	27		$	—	$	—		$	27	(c)
FPL - commodity contracts	$	—	$	8		$	6	$	(2	)	$	12	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	2,588	$	3,582		$	585	$	(5,453	)	$	1,302	(c)
Interest rate swaps	$	—	$	320		$	—	$	—		$	320	(c)
Foreign currency swaps	$	—	$	9		$	—	$	—		$	9	(c)
FPL - commodity contracts	$	—	$	513		$	2	$	(2	)	$	513	(c)

__________________________________

(a) Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts.

(b) At NEE, approximately $1,086 million ($979 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.

(c) See Note 3 for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.

	December 31, 2010
	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting(a)			Total
	(millions)
Assets:
Cash equivalents:
NEE - equity securities	$	—	$	122		$	—	$	—		122
FPL - equity securities	$	—	$	7		$	—	$	—		7
Special use funds:
NEE:
Equity securities	$	741	$	1,245	(b)	$	—	$	—		1,986
U.S. Government and municipal bonds	$	495	$	127		$	—	$	—		622
Corporate debt securities	$	—	$	486		$	—	$	—		486
Mortgage-backed securities	$	—	$	447		$	—	$	—		447
Other debt securities	$	—	$	108		$	—	$	—		108
FPL:
Equity securities	$	125	$	1,082	(b)	$	—	$	—		1,207
U.S. Government and municipal bonds	$	458	$	111		$	—	$	—		569
Corporate debt securities	$	—	$	334		$	—	$	—		334
Mortgage-backed securities	$	—	$	381		$	—	$	—		381
Other debt securities	$	—	$	41		$	—	$	—		41
Other investments:
NEE:
Equity securities	$	3	$	1		$	—	$	—		4
U.S. Government and municipal bonds	$	8	$	4		$	—	$	—		12
Corporate debt securities	$	—	$	32		$	—	$	—		32
Mortgage-backed securities	$	—	$	58		$	—	$	—		58
Other	$	5	$	10		$	—	$	—		15
Derivatives:
NEE:
Commodity contracts	$	1,755	$	1,538		$	824	$	(3,177	)	$	940	(c)
Interest rate swaps	$	—	$	107		$	—	$	—		$	107	(c)
Foreign currency swaps	$	—	$	48		$	—	$	—		$	48	(c)
FPL - commodity contracts	$	—	$	14		$	8	$	(13	)	$	9	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,821	$	1,509		$	528	$	(3,206	)	$	652	(c)
Interest rate swaps	$	—	$	123		$	—	$	—		$	123	(c)
Foreign currency swaps	$	—	$	4		$	—	$	—		$	4	(c)
FPL - commodity contracts	$	—	$	257		$	1	$	(13	)	$	245	(c)

__________________________________

(a) Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts.

(b) At NEE, approximately $1,084 million ($980 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.

(c) See Note 3 for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.

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,
	2011						2010						2009
	NEE			FPL			NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	296		$	7		$	364		$	11		$	404		$	(1	)
Realized and unrealized gains (losses):
Included in earnings(a)	454			—			407			—			555			—
Included in regulatory assets and liabilities	3			3			1			1			7			7
Purchases, sales, settlements and issuances(b)	(258		)	(6		)	(432		)	(5		)	(521		)	6
Transfers in(c)	6			—			2			—			16			—
Transfers out(c)	(15		)	—			(46		)	—			(97		)	(1		)
Fair value of net derivatives based on significant unobservable inputs at December 31	$	486		$	4		$	296		$	7		$	364		$	11
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date(d)	$	423		$	—		$	170		$	—		$	270		$	—

__________________________________

(a) For the years ended December 31, 2011, 2010 and 2009, $441 million, $384 million and $555 million, respectively, of realized and unrealized gains are reflected in the consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.

(b) For the year ended December 31, 2011, includes $270 million of purchases, $166 million of settlements and $362 million of issuances.

(c) Transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data.  NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.

(d) For the years ended December 31, 2011, 2010 and 2009, $423 million, $153 million and $270 million, respectively, of unrealized gains are reflected in the consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.