Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring 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 consolidated balance sheets.

	December 31, 2022
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	5,372	$	7,559	$	2,094	$	(12,030)	$	2,995
Interest rate contracts	$	—	$	583	$	—	$	(49)	534
Foreign currency contracts	$	—	$	—	$	—	$	(4)	(4)
Total derivative assets									$	3,525
FPL – commodity contracts	$	—	$	11	$	25	$	(7)	$	29
Liabilities:
NEE:
Commodity contracts	$	7,185	$	7,620	$	2,948	$	(13,010)	$	4,743
Interest rate contracts	$	—	$	191	$	—	$	(49)	142
Foreign currency contracts	$	—	$	130	$	—	$	(4)	126
Total derivative liabilities									$	5,011
FPL – commodity contracts	$	—	$	4	$	16	$	(7)	$	13
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,590
Noncurrent derivative assets(c)									1,935
Total derivative assets									$	3,525
Current derivative liabilities(d)									$	2,102
Noncurrent derivative liabilities(e)									2,909
Total derivative liabilities									$	5,011
Net fair value by FPL balance sheet line item:
Current other assets									$	19
Noncurrent other assets									10
Total derivative assets									$	29
Current other liabilities									$	12
Noncurrent other liabilities									1
Total derivative liabilities									$	13

______________________

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

(b)Reflects the netting of approximately $299 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $262 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $328 million in margin cash collateral paid to counterparties.

(e)Reflects the netting of approximately $1,213 million in margin cash collateral paid to counterparties.

	December 31, 2021
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,896	$	5,082	$	1,401	$	(6,622)	$	1,757
Interest rate contracts	$	—	$	106	$	—	$	(30)	76
Foreign currency contracts	$	—	$	8	$	—	$	(17)	(9)
Total derivative assets									$	1,824
FPL – commodity contracts	$	—	$	3	$	13	$	(3)	$	13
Liabilities:
NEE:
Commodity contracts	$	2,571	$	4,990	$	1,231	$	(6,594)	$	2,198
Interest rate contracts	$	—	$	739	$	—	$	(30)	709
Foreign currency contracts	$	—	$	86	$	—	$	(17)	69
Total derivative liabilities									$	2,976
FPL – commodity contracts	$	—	$	8	$	5	$	(3)	$	10
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	689
Noncurrent derivative assets(c)									1,135
Total derivative assets									$	1,824
Current derivative liabilities(d)									$	1,263
Noncurrent derivative liabilities(e)									1,713
Total derivative liabilities									$	2,976
Net fair value by FPL balance sheet line item:
Current other assets									$	13
Current other liabilities									$	9
Noncurrent other liabilities									1
Total derivative liabilities									$	10

______________________

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

(b)Reflects the netting of approximately $150 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $56 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $6 million in margin cash collateral paid to counterparties.

(e)Reflects the netting of approximately $172 million in margin cash collateral paid to counterparties

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:

	December 31, 2022
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	961	$	—		$	—	$	961
FPL – equity securities	$	36	$	—		$	—	$	36
Special use funds:(b)
NEE:
Equity securities	$	2,062	$	2,375	(c)	$	—	$	4,437
U.S. Government and municipal bonds	$	641	$	63		$	—	$	704
Corporate debt securities	$	6	$	716		$	—	$	722
Asset-backed securities	$	—	$	615		$	—	$	615
Other debt securities	$	1	$	19		$	—	$	20
FPL:
Equity securities	$	743	$	2,162	(c)	$	—	$	2,905
U.S. Government and municipal bonds	$	505	$	29		$	—	$	534
Corporate debt securities	$	6	$	547		$	—	$	553
Asset-backed securities	$	—	$	473		$	—	$	473
Other debt securities	$	1	$	11		$	—	$	12
Other investments:(d)
NEE:
Equity securities	$	30	$	1		$	—	$	31
Debt securities	$	117	$	300		$	118	$	535
FPL:
Equity securities	$	9	$	—		$	—	$	9
Debt securities	$	—	$	114		$	—	$	114

______________________

(a)Includes restricted cash equivalents of approximately $69 million ($33 million for FPL) in current other assets on the 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 consolidated balance sheets.

	December 31, 2021
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	176	$	—		$	—	$	176
FPL – equity securities	$	58	$	—		$	—	$	58
Special use funds:(b)
NEE:
Equity securities	$	2,538	$	2,973	(c)	$	—	$	5,511
U.S. Government and municipal bonds	$	770	$	75		$	—	$	845
Corporate debt securities	$	7	$	955		$	—	$	962
Asset-backed securities	$	—	$	663		$	—	$	663
Other debt securities	$	2	$	33		$	—	$	35
FPL:
Equity securities	$	862	$	2,690	(c)	$	—	$	3,552
U.S. Government and municipal bonds	$	624	$	44		$	—	$	668
Corporate debt securities	$	6	$	720		$	—	$	726
Asset-backed securities	$	—	$	515		$	—	$	515
Other debt securities	$	2	$	23		$	—	$	25
Other investments:(d)
NEE:
Equity securities	$	70	$	2		$	—	$	72
Debt securities	$	111	$	162		$	12	$	285
FPL – equity securities	$	13	$	—		$	—	$	13

______________________

(a)Includes restricted cash equivalents of approximately $56 million ($53 million for FPL) in current other assets on the 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 consolidated balance sheets.

Fair Value Inputs, Assets, Quantitative Information

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2022 are as follows:

Transaction Type	Fair Value at December 31, 2022				Valuation Technique(s)	Significant Unobservable Inputs	Range			Weighted-average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	222	$	621	Discounted cash flow	Forward price (per MWh(b))	$(9)	—	$564	$51
Forward contracts – gas	349		307		Discounted cash flow	Forward price (per MMBtu(c))	$2	—	$23	$4
Forward contracts – congestion	68		12		Discounted cash flow	Forward price (per MWh(b))	$(21)	—	$26	$1
Options – power	114		5		Option models	Implied correlations	44%	—	90%	56%
						Implied volatilities	32%	—	361%	134%
Options – primarily gas	726		736		Option models	Implied correlations	44%	—	90%	56%
						Implied volatilities	24%	—	298%	59%
Full requirements and unit contingent contracts	457		1,037		Discounted cash flow	Forward price (per MWh(b))	$13	—	$424	$73
						Customer migration rate(d)	—%	—	103%	6%
Forward contracts – other	158		230
Total	$	2,094	$	2,948

______________________

(a)Unobservable inputs were weighted by volume.

(b)Megawatt-hours

(c)One million British thermal units

(d)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.

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,
	2022				2021				2020
	NEE		FPL		NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	170	$	8	$	1,374	$	(1)	$	1,207	$	(8)
Realized and unrealized gains (losses):
Included in earnings(a)	(2,343)		—		(1,488)		—		547		—
Included in other comprehensive income (loss)(b)	—		—		—		—		1		—
Included in regulatory assets and liabilities	158		158		8		8		2		2
Purchases	542		—		243		—		191		—
Sales(c)	—		—		—		—		114		—
Settlements	992		(157)		259		1		(562)		6
Issuances	(362)		—		(196)		—		(123)		—
Transfers in(d)	(4)		—		2		—		18		(1)
Transfers out(d)	(7)		—		(32)		—		(21)		—
Fair value of net derivatives based on significant unobservable inputs at December 31	$	(854)	$	9	$	170	$	8	$	1,374	$	(1)
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date(e)	$	(1,162)	$	—	$	(924)	$	—	$	317	$	—

______________________

(a)For the years ended December 31, 2022, 2021 and 2020, realized and unrealized gains (losses) of approximately $(2,343) million, $(1,488) million and $569 million are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.

(b)Included in net unrealized gains (losses) on foreign currency translation in the consolidated statements of comprehensive income.

(c)See Note 1 – Disposal of Businesses/Assets and Sale of Noncontrolling Ownership Interests.

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

(e)For the years ended December 31, 2022, 2021 and 2020, unrealized gains (losses) of approximately $(1,162) million, $(924) million and $317 million are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.

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

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

	Years Ended December 31,
	2022		2021		2020
	(millions)
Commodity contracts(a) – operating revenues (including $2,346 unrealized losses, $2,235 unrealized losses and $163 unrealized losses, respectively)	$	(3,297)	$	(2,710)	$	352
Foreign currency contracts – interest expense (including $53 unrealized losses, $89 unrealized losses and $26 unrealized gains, respectively)	(61)		(89)		8
Interest rate contracts – interest expense (including $1,021 unrealized gains, $319 unrealized gains and $396 unrealized losses, respectively)	1,221		264		(421)
Losses reclassified from AOCI:
Interest rate contracts(b)	(5)		(7)		(35)
Foreign currency contracts – interest expense	(3)		(3)		(3)
Total	$	(2,145)	$	(2,545)	$	(99)

______________________

(a)For the years ended December 31, 2022, 2021 and 2020, FPL recorded gains of approximately $211 million, $7 million and $6 million, respectively, related to commodity contracts as regulatory liabilities on its consolidated balance sheets.

(b)For the year ended December 31, 2020, approximately $23 million was reclassified to gains on disposal of businesses/assets – net (see Note 1 – Disposal of Businesses/Assets and Sale of Noncontrolling Ownership Interests); remaining balances were reclassified to interest expense on NEE's consolidated statements of income.

Net notional volumes

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

	December 31, 2022				December 31, 2021
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(104)	MWh	—		(103)	MWh	—
Natural gas	(1,307)	MMBtu	258	MMBtu	(1,290)	MMBtu	91	MMBtu
Oil	(38)	barrels	—		(33)	barrels	—