Equity Method Investments

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method InvestmentsAt December 31, 2022 and 2021, NEE's equity method investments totaled approximately $6,582 million and $6,159 million, respectively. The principal entities included in investment in equity method investees on NEE's consolidated balance sheets are NEP OpCo and Sabal Trail Transmission, LLC (Sabal Trail) (see Note 15 – Contracts), and in 2021 also included Mountain Valley Pipeline (see Note 4 – Nonrecurring Fair Value Measurements and Note 15 - Contracts) and Silver State South Solar, LLC. As of December 31, 2022, NEE's interest in the principal entities range from approximately 43% to 54%, and these entities primarily own natural gas pipelines or electric generation facilities.

Summarized combined information for these principal entities is as follows:


	2022		2021
	(millions)
Operating revenue	$	1,705	$	1,469
Operating income	$	1,423	$	559
Net income	$	1,380	$	739
Total assets	$	26,058	$	29,537
Total liabilities	$	9,779	$	9,501
Partners'/members' equity(a)	$	16,279	$	20,036

NEE's share of underlying equity in the principal entities	$	2,379	$	4,352
Difference between investment carrying amount and underlying equity in net assets(b)	2,589		1,133
NEE's investment carrying amount for the principal entities	$	4,968	$	5,485

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(a)Reflects NEE's interest, as well as third-party interests, in NEP OpCo.

(b)Approximately $2.5 billion in 2022 and $2.6 billion in 2021 is associated with NEP OpCo, of which approximately 75% relates to goodwill and is not being amortized and the remaining balance is being amortized primarily over a period of 13 to 25 years. The difference for 2021 is net of an approximately $1.5 billion impairment charge in 2020 related to NextEra Energy Resources' investment in Mountain Valley Pipeline. See Note 4 – Nonrecurring Fair Value Measurements for a discussion of impairment charges in 2020 and 2022.

NextEra Energy Resources provides operational, management and administrative services as well as transportation and fuel management services to NEP and its subsidiaries under various agreements (service agreements). NextEra Energy Resources is also party to a cash sweep and credit support (CSCS) agreement with a subsidiary of NEP. At December 31, 2022 and 2021, the cash sweep amounts (due to NEP and its subsidiaries) held in accounts belonging to NextEra Energy Resources or its subsidiaries were approximately $298 million and $57 million, respectively, and are included in accounts payable. Fee income related to the CSCS agreement and the service agreements totaled approximately $174 million, $148 million and $120 million for the years ended December 31, 2022, 2021 and 2020, respectively, and is included in operating revenues in NEE's consolidated statements of income. Amounts due from NEP of approximately $94 million and $113 million are included in other receivables and $101 million and $40 million are included in noncurrent other assets at December 31, 2022 and 2021, respectively. See also Note 1 – Disposal of Businesses/Assets and Sale of Noncontrolling Ownership Interests for amounts due to NEP for reimbursement of construction-related costs. NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $4,600 million at December 31, 2022 primarily related to obligations on behalf of NEP's subsidiaries with maturity dates ranging from 2023 to 2059, including certain project performance obligations, obligations under financing and interconnection agreements and obligations, primarily incurred and future construction payables, associated with the December 2022 sale of projects to NEP (see Note 1 – Disposal of Businesses/Assets and Sale of Noncontrolling Ownership Interests). Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries are the guarantor are recorded on NEE’s consolidated balance sheets at fair value. At December 31, 2022, approximately $56 million related to the fair value of the credit support provided under the CSCS agreement is recorded as noncurrent other liabilities on NEE's consolidated balance sheet.

During 2022, 2021 and 2020, certain services, primarily engineering, construction and maintenance services, were provided to subsidiaries of NEE by related parties that NEE accounts for under the equity method of accounting. Charges for these services amounted to approximately $579 million, $691 million and $721 million for the years ended December 31, 2022, 2021 and 2020, respectively.