Non-Derivative Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Financial assets and liabilities and other fair value measurements

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

	September 30, 2021
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	150	$	—		$	—	$	150
FPL – equity securities	$	81	$	—		$	—	$	81
Special use funds:(b)
NEE:
Equity securities	$	2,445	$	2,849	(c)	$	—	$	5,294
U.S. Government and municipal bonds	$	816	$	66		$	—	$	882
Corporate debt securities	$	1	$	862		$	—	$	863
Mortgage-backed securities	$	—	$	439		$	—	$	439
Other debt securities	$	—	$	144		$	—	$	144
FPL:
Equity securities	$	833	$	2,594	(c)	$	—	$	3,427
U.S. Government and municipal bonds	$	652	$	49		$	—	$	701
Corporate debt securities	$	—	$	640		$	—	$	640
Mortgage-backed securities	$	—	$	314		$	—	$	314
Other debt securities	$	—	$	129		$	—	$	129
Other investments:(d)
NEE:
Equity securities	$	66	$	1		$	—	$	67
Debt securities	$	125	$	173		$	23	$	321
FPL – equity securities	$	13	$	—		$	—	$	13

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(a)Includes restricted cash equivalents of approximately $68 million ($67 million for FPL) in current other assets on the condensed consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

	December 31, 2020
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	742	$	—		$	—	$	742
FPL – equity securities	$	137	$	—		$	—	$	137
Special use funds:(b)
NEE:
Equity securities	$	2,237	$	2,489	(c)	$	—	$	4,726
U.S. Government and municipal bonds	$	590	$	127		$	—	$	717
Corporate debt securities	$	1	$	870		$	—	$	871
Mortgage-backed securities	$	—	$	422		$	—	$	422
Other debt securities	$	—	$	124		$	—	$	124
FPL:
Equity securities	$	752	$	2,260	(c)	$	—	$	3,012
U.S. Government and municipal bonds	$	449	$	87		$	—	$	536
Corporate debt securities	$	—	$	627		$	—	$	627
Mortgage-backed securities	$	—	$	335		$	—	$	335
Other debt securities	$	—	$	119		$	—	$	119
Other investments:(d)
NEE:
Equity securities	$	62	$	—		$	—	$	62
Debt securities	$	91	$	127		$	—	$	218
FPL – equity securities	$	12	$	—		$	—	$	12

———————————————

(a)Includes restricted cash equivalents of approximately $111 million ($91 million for FPL) in current other assets and $42 million ($42 million for FPL) in noncurrent other assets on the condensed consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

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 September 30, 2021 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	September 30, 2021				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	483	$	247	Discounted cash flow	Forward price (per MWh)	$(3)	—	$189	$37
Forward contracts – gas	207		86		Discounted cash flow	Forward price (per MMBtu)	$2	—	$18	$4
Forward contracts – congestion	31		8		Discounted cash flow	Forward price (per MWh)	$(8)	—	$72	$—
Options – power	78		11		Option models	Implied correlations	34%	—	85%	53%
						Implied volatilities	25%	—	268%	73%
Options – primarily gas	865		717		Option models	Implied correlations	34%	—	85%	53%
						Implied volatilities	16%	—	160%	46%
Full requirements and unit contingent contracts	125		1,192		Discounted cash flow	Forward price (per MWh)	$3	—	$301	$71
						Customer migration rate(b)	—%	—	14%	1%
Forward contracts – other	44		20
Total	$	1,833	$	2,281

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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)

———————————————

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

Fair Value, by Balance Sheet Grouping

The carrying amounts of commercial paper and other short-term debt approximate their fair values. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:

	September 30, 2021					December 31, 2020
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)
NEE:
Special use funds(a)	$	863	$	864		$	919	$	920
Other investments(b)	$	73	$	73		$	29	$	29
Long-term debt, including current portion	$	51,047	$	55,102	(c)	$	46,082	$	51,525	(c)
FPL:
Special use funds(a)	$	649	$	650		$	718	$	719
Long-term debt, including current portion	$	17,324	$	20,273	(c)	$	17,236	$	21,178	(c)

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(a)Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis (Level 2).

(b)Included in noncurrent other assets on NEE's condensed consolidated balance sheets.

(c)At September 30, 2021 and December 31, 2020, substantially all is Level 2 for NEE and FPL.

Unrealized Gains (Losses) Recognized On Equity Securities Still Held at The Reporting Date

Unrealized gains (losses) recognized on equity securities held at September 30, 2021 and 2020 are as follows:

	NEE								FPL
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020		2021		2020		2021		2020
	(millions)
Unrealized gains (losses)	$	(25)	$	223	$	565	$	65	$	(13)	$	129	$	375	$	50

Gains and Losses on Available-for-sale Debt Securities

Realized gains and losses and proceeds from the sale or maturity of available for sale debt securities are as follows:

	NEE								FPL
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020		2021		2020		2021		2020
	(millions)
Realized gains	$	17	$	30	$	61	$	86	$	14	$	21	$	46	$	66
Realized losses	$	14	$	17	$	58	$	50	$	11	$	10	$	46	$	38
Proceeds from sale or maturity of securities	$	245	$	555	$	1,303	$	2,046	$	191	$	475	$	988	$	1,747

The unrealized gains and unrealized losses on available for sale debt securities and the fair value of available for sale debt securities in an unrealized loss position are as follows:

	NEE				FPL
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
	(millions)
Unrealized gains	$	81	$	134	$	65	$	104
Unrealized losses(a)	$	12	$	9	$	8	$	9
Fair value	$	799	$	201	$	556	$	150

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(a)    Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at September 30, 2021 and December 31, 2020 were not material to NEE or FPL.