Debt

Long-term debt consists of the following:



		December 31,
		2014					2013
	Maturity Date	Balance			Weighted- Average Interest Rate		Balance			Weighted- Average Interest Rate
		(millions)					(millions)
FPL:
First mortgage bonds - fixed	2017 - 2044	$	8,490		4.95	%	$	7,490		5.12	%
Storm-recovery bonds - fixed^(a)	2017 - 2021	331			5.24	%	386			5.22	%
Pollution control, solid waste disposal and industrial development revenue bonds - variable^(b)(c)	2020 - 2029	633			0.05	%	633			0.07	%
Other long-term debt - variable^(c)	2014	—					300			0.66	%
Other long-term debt - fixed	2014 - 2040	55			4.96	%	55			4.96	%
Unamortized discount		(36		)			(35		)
Total long-term debt of FPL		9,473					8,829
Less current maturities of long-term debt		60					356
Long-term debt of FPL, excluding current maturities		9,413					8,473
NEECH:
Debentures - fixed^(d)	2015 - 2023	3,125			3.87	%	2,550			4.43	%
Debentures, related to NEE's equity units - fixed	2014 - 2018	2,152			1.54	%	2,503			1.55	%
Junior subordinated debentures - fixed	2044 - 2073	2,978			5.84	%	3,353			6.16	%
Senior secured bonds - fixed^(e)	2030	500			7.50	%	500			7.50	%
Japanese yen denominated senior notes - fixed^(d)	2030	83			5.13	%	95			5.13	%
Japanese yen denominated term loans - variable^(c)(d)	2014 - 2017	459			1.83	%	419			1.45	%
Other long-term debt - fixed	2016 - 2044	510			2.70	%	150			0.86	%
Other long-term debt - variable^(c)	2014 - 2019	716			2.44	%	1,665			1.27	%
Fair value hedge adjustment (see Note 3)		20					4
Unamortized discount		(1		)			—
Total long-term debt of NEECH		10,542					11,239
Less current maturities of long-term debt		1,787					1,469
Long-term debt of NEECH, excluding current maturities		8,755					9,770
NEER:
Senior secured limited-recourse bonds and notes - fixed	2017 - 2038	2,273			6.02	%	2,523			5.84	%
Senior secured limited-recourse term loans - primarily variable^(c)(d)	2015 - 2032	4,242			3.12	%	3,874			3.18	%
Other long-term debt - primarily variable^(c)(d)(f)	2015 - 2030	656			3.71	%	808			3.48	%
Canadian revolving credit facilities - variable^(c)	2014 - 2016	704			2.33	%	472			2.33	%
Unamortized discount		(8		)			(10		)
Total long-term debt of NEER		7,867					7,667
Less current maturities of long-term debt^(f)		1,668					1,941
Long-term debt of NEER, excluding current maturities		6,199					5,726
Total long-term debt		$	24,367				$	23,969

______________________


(a)	Principal on the storm-recovery bonds is due on the final maturity date (the date by which the principal must be repaid to prevent a default) for each tranche, however, it is being paid semiannually and sequentially.

(b)

Tax exempt bonds that permit individual bond holders to tender the bonds for purchase at any time prior to maturity. In the event bonds are tendered for purchase, they would be remarketed by a designated remarketing agent in accordance with the related indenture. If the remarketing is unsuccessful, FPL would be required to purchase the tax exempt bonds. As of December 31, 2014, all tax exempt bonds tendered for purchase have been successfully remarketed. FPL's bank revolving line of credit facilities are available to support the purchase of tax exempt bonds.


(c)	Variable rate is based on an underlying index plus a margin except for in 2014 approximately $983 million and in 2013 approximately $1.1 billion of NEER's senior secured limited-recourse term loans is based on the greater of an underlying index or a floor, plus a margin.


(d)	Interest rate contracts, primarily swaps, have been entered into for the majority of these debt issuances. See Note 3.


(e)	Issued by a wholly-owned subsidiary of NEECH and collateralized by a third-party note receivable held by that subsidiary. See Note 4 - Fair Value of Financial Instruments Recorded at the Carrying Amount.


(f)	See Note 13 - Spain Solar Projects for discussion of events of default related to debt associated with the Spain solar projects.

Minimum annual maturities of long-term debt for NEE are approximately $3,515 million, $1,285 million, $2,608 million, $1,440 million and $1,943 million for 2015, 2016, 2017, 2018 and 2019, respectively. The respective amounts for FPL are approximately $60 million, $64 million, $367 million, $72 million and $76 million.

At December 31, 2014 and 2013, short-term borrowings had a weighted-average interest rate of 0.40% (0.40% for FPL) and 0.20% (0.11% for FPL), respectively. Available lines of credit aggregated approximately $7.9 billion ($4.9 billion for NEECH and $3.0 billion for FPL) at December 31, 2014. These facilities provide for the issuance of letters of credit of up to approximately $6.6 billion ($4.1 billion for NEECH and $2.5 billion for FPL). The issuance of letters of credit is subject to the aggregate commitment under the applicable facility. While no direct borrowings were outstanding at December 31, 2014, letters of credit totaling $843 million and $3 million were outstanding under the NEECH and FPL credit facilities, respectively.

NEE has guaranteed certain payment obligations of NEECH, including most of those under NEECH's debt, including all of its debentures and commercial paper issuances, as well as most of its payment guarantees and indemnifications. NEECH has guaranteed certain debt and other obligations of NEER and its subsidiaries.

In May 2012, NEE sold $600 million of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series E Debenture due June 1, 2017 issued in the principal amount of $1,000 by NEECH (see table above). Each stock purchase contract requires the holder to purchase by no later than June 1, 2015 (the final settlement date) for a price of $50 in cash, a number of shares of NEE common stock (subject to antidilution adjustments) based on a price per share range of $64.35 to $77.22. If purchased on the final settlement date, as of December 31, 2014, the number of shares issued would (subject to antidilution adjustments) range from 0.7835 shares if the applicable market value of a share of common stock is less than or equal to $64.35, to 0.6529 shares if the applicable market value of a share is equal to or greater than $77.22, with applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending May 27, 2015. Total annual distributions on the equity units will be at the rate of 5.599%, consisting of interest on the debentures (1.70% per year) and payments under the stock purchase contracts (3.899% per year). The interest rate on the debentures is expected to be reset on or after March 1, 2015. The holder of the equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder’s obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

Also, in May 2012, NEECH completed a remarketing of $350 million aggregate principal amount of its Series C Debentures due June 1, 2014 (Debentures). The Debentures were issued in May 2009 as components of equity units issued concurrently by NEE (2009 equity units). The Debentures were fully and unconditionally guaranteed by NEE. In connection with the remarketing of the Debentures, the interest rate on the Debentures was reset to 1.611% per year, and interest was payable on June 1 and December 1 of each year, commencing June 1, 2012. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the 2009 equity units, on June 1, 2012, NEE issued 5,400,500 shares of common stock in exchange for $350 million.

In September 2012, NEE sold $650 million of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series F Debenture due September 1, 2017 issued in the principal amount of $1,000 by NEECH (see table above). Each stock purchase contract requires the holder to purchase by no later than September 1, 2015 (the final settlement date) for a price of $50 in cash, a number of shares of NEE common stock (subject to antidilution adjustments) based on a price per share range of $67.15 to $80.58. If purchased on the final settlement date, as of December 31, 2014, the number of shares issued would (subject to antidilution adjustments) range from 0.7507 shares if the applicable market value of a share of common stock is less than or equal to $67.15, to 0.6256 shares if the applicable market value of a share is equal to or greater than $80.58, with applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending August 27, 2015. Total annual distributions on the equity units will be at the rate of 5.889%, consisting of interest on the debentures (1.60% per year) and payments under the stock purchase contracts (4.289% per year). The interest rate on the debentures is expected to be reset on or after March 1, 2015. The holder of the equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder’s obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

In August 2013, NEECH completed a remarketing of approximately $402.4 million aggregate principal amount of its Series D Debentures due September 1, 2015, which constitutes a portion of the $402.5 million aggregate principal amount of such debentures (Debentures) that were issued in September 2010 as components of equity units issued concurrently by NEE (2010 equity units). The Debentures are fully and unconditionally guaranteed by NEE. In connection with the remarketing of the Debentures, the interest rate on the Debentures was reset to 1.339% per year, and interest is payable on March 1 and September 1 of each year, commencing September 1, 2013. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the 2010 equity units, in August and September 2013, NEE issued a total of 5,946,530 shares of common stock in exchange for $402.5 million.

In September 2013, NEE sold $500 million of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series G Debenture due September 1, 2018 issued in the principal amount of $1,000 by NEECH (see table above). Each stock purchase contract requires the holder to purchase by no later than September 1, 2016 (the final settlement date) for a price of $50 in cash, a number of shares of NEE common stock (subject to antidilution adjustments) based on a price per share range of $82.70 to $99.24. If purchased on the final settlement date, as of December 31, 2014, the number of shares issued would (subject to antidilution adjustments) range from 0.6062 shares if the applicable market value of a share of common stock is less than or equal to $82.70 to 0.5051 shares if the applicable market value of a share is equal to or greater than $99.24, with applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending August 29, 2016. Total annual distributions on the equity units will be at the rate of 5.799%, consisting of interest on the debentures (1.45% per year) and payments under the stock purchase contracts (4.349% per year). The interest rate on the debentures is expected to be reset on or after March 1, 2016. The holder of the equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder's obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

Prior to the issuance of NEE’s common stock, the stock purchase contracts, if dilutive, will be reflected in NEE’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of NEE common stock used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that would be issued upon settlement of the stock purchase contracts over the number of shares that could be purchased by NEE in the market, at the average market price during the period, using the proceeds receivable upon settlement.