Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The tables below present NEE's and FPL's gross derivative positions at March 31, 2021 and December 31, 2020, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. 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 condensed consolidated balance sheets.

	March 31, 2021
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	775	$	1,893	$	1,499	$	(2,197)	$	1,970
Interest rate contracts	$	—	$	218	$	—	$	(69)	149
Foreign currency contracts	$	—	$	35	$	—	$	(40)	(5)
Total derivative assets									$	2,114
FPL - commodity contracts	$	—	$	1	$	2	$	(1)	$	2
Liabilities:
NEE:
Commodity contracts	$	858	$	1,639	$	342	$	(2,176)	$	663
Interest rate contracts	$	—	$	418	$	—	$	(69)	349
Foreign currency contracts	$	—	$	60	$	—	$	(40)	20
Total derivative liabilities									$	1,032
FPL - commodity contracts	$	—	$	5	$	4	$	(1)	$	8
Net fair value by NEE balance sheet line item:
Current derivative assets									$	496
Noncurrent derivative assets(b)									1,618
Total derivative assets									$	2,114
Current derivative liabilities(c)									$	437
Noncurrent derivative liabilities									595
Total derivative liabilities									$	1,032
Net fair value by FPL balance sheet line item:
Current other assets									$	2
Current other liabilities									$	8

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(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 condensed consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.

(b)Reflects the netting of approximately $66 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $45 million in margin cash collateral paid to counterparties.

	December 31, 2020
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	919	$	1,881	$	1,679	$	(2,325)	$	2,154
Interest rate contracts	$	—	$	81	$	—	$	(41)	40
Foreign currency contracts	$	—	$	57	$	—	$	(34)	23
Total derivative assets									$	2,217
FPL - commodity contracts	$	—	$	1	$	2	$	—	$	3
Liabilities:
NEE:
Commodity contracts	$	1,004	$	1,468	$	305	$	(2,277)	$	500
Interest rate contracts	$	—	$	1,042	$	—	$	(41)	1,001
Foreign currency contracts	$	—	$	43	$	—	$	(34)	9
Total derivative liabilities									$	1,510
FPL - commodity contracts	$	—	$	—	$	3	$	—	$	3
Net fair value by NEE balance sheet line item:
Current derivative assets									$	570
Noncurrent derivative assets(b)									1,647
Total derivative assets									$	2,217
Current derivative liabilities(c)									$	311
Noncurrent derivative liabilities									1,199
Total derivative liabilities									$	1,510
Net fair value by FPL balance sheet line item:
Current other assets									$	3
Current other liabilities									$	2
Noncurrent other liabilities									1
Total derivative liabilities									$	3

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(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 condensed consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.

(b)Reflects the netting of approximately $184 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $136 million in margin cash collateral paid to counterparties.

Significant unobservable inputs used in valuation of contracts categorized as Level 3

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at March 31, 2021 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	March 31, 2021				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts - power	$	703	$	92	Discounted cash flow	Forward price (per MWh)	$1	—	$133	$30
Forward contracts - gas	277		34		Discounted cash flow	Forward price (per MMBtu)	$1	—	$8	$3
Forward contracts - congestion	23		5		Discounted cash flow	Forward price (per MWh)	$(8)	—	$75	$—
Options - power	38		9		Option models	Implied correlations	39%	—	85%	54%
						Implied volatilities	7%	—	236%	59%
Options - primarily gas	137		120		Option models	Implied correlations	39%	—	85%	54%
						Implied volatilities	16%	—	115%	29%
Full requirements and unit contingent contracts	295		70		Discounted cash flow	Forward price (per MWh)	$5	—	$318	$50
						Customer migration rate(b)	—%	—	49%	1%
Forward contracts - other	26		12
Total	$	1,499	$	342

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(a)Unobservable inputs were weighted by volume.

(b)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)

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(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:

	Three Months Ended March 31,
	2021				2020
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	1,374	$	(1)	$	1,207	$	(8)
Realized and unrealized gains (losses):
Included in earnings(a)	(130)		—		387		—
Included in regulatory assets and liabilities	(2)		(2)		(2)		(2)
Purchases	38		—		81		—
Sales(b)	—		—		114		—
Settlements	(89)		1		(206)		1
Issuances	(21)		—		(32)		—
Transfers out(c)	(13)		—		(30)		—
Fair value of net derivatives based on significant unobservable inputs at March 31	$	1,157	$	(2)	$	1,519	$	(9)
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date(d)	$	(125)	$	—	$	308	$	—

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(a)For the three months ended March 31, 2021 and 2020, realized and unrealized gains (losses) of approximately $(130) million and $405 million, respectively, are included in the condensed consolidated statements of income in operating revenues and the balance is included in interest expense.

(b)See Note 11 - Disposal of a Business.

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

(d)For the three months ended March 31, 2021 and 2020, unrealized gains (losses) of approximately $(125) million and $319 million, respectively, are included in the condensed consolidated statements of income in operating revenues and the balance is included in interest expense.

Net notional volumes

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

	March 31, 2021				December 31, 2020
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(104)	MWh	—		(90)	MWh	—
Natural gas	(811)	MMBtu	241	MMBtu	(607)	MMBtu	87	MMBtu
Oil	(23)	barrels	—		(6)	barrels	—

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

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

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

	Three Months Ended March 31,
	2021		2020
	(millions)
Commodity contracts(a) - operating revenues	$	(488)	$	625
Foreign currency contracts - interest expense	(40)		(79)
Interest rate contracts - interest expense	747		(905)
Losses reclassified from AOCI:
Interest rate contracts(b)	(1)		(25)
Foreign currency contracts - interest expense	(1)		(1)
Total	$	217	$	(385)

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(a)For the three months ended March 31, 2021 and 2020, FPL recorded losses of approximately $7 million and $3 million, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets.

(b)For the three months ended March 31, 2020, approximately $23 million was reclassified to gains on disposal of businesses/assets - net (see Note 11 - Disposal of a Business); remaining balances were reclassified to interest expense on NEE's condensed consolidated statements of income.