Summary of Significant Accounting and Reporting Policies

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting and Reporting Policies

Rate Regulation – In March 2024, the FPSC issued a supplemental final order regarding FPL's 2021 rate agreement. The order affirmed the FPSC's prior approval of the 2021 rate agreement and is intended to further document, as requested by the Florida Supreme Court, how the evidence presented led to and supports the FPSC's decision to approve FPL's 2021 rate agreement. In April 2024, Florida Rising, Inc., Environmental Confederation of Southwest Florida, Inc. and League of United Latin American Citizens of Florida submitted a notice of appeal to the Florida Supreme Court regarding the FPSC's supplemental final order. The Florida Supreme Court issued an order granting FPL's motion to expedite the schedule, and briefing is expected to be concluded by July 1, 2024.

In April 2024, the FPSC approved FPL’s March 2024 request for a mid-course correction to reduce the 2024 fuel cost recovery factors and refund customers approximately $662 million over eight months effective May 2024.

Restricted Cash – At March 31, 2024 and December 31, 2023, NEE had approximately $571 million ($15 million for FPL) and $730 million ($15 million for FPL), respectively, of restricted cash, which is included in current other assets on NEE's and FPL's condensed consolidated balance sheets. Restricted cash is primarily related to debt service payments and margin cash collateral requirements at NEER and bond proceeds held for construction at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $214 million is netted against derivative assets and $616 million is netted against derivative liabilities at March 31, 2024 and $194 million is netted against derivative assets and $815 million is netted against derivative liabilities at December 31, 2023. See Note 2.

Property Plant and Equipment – Property, plant and equipment consists of the following:


	NEE				FPL
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
	(millions)
Electric plant in service and other property	$	144,982	$	139,049	$	83,520	$	79,801
Nuclear fuel	1,639		1,564		1,155		1,125
Construction work in progress	16,682		18,652		6,050		8,311
Property, plant and equipment, gross	163,303		159,265		90,725		89,237
Accumulated depreciation and amortization	(34,110)		(33,489)		(18,694)		(18,629)
Property, plant and equipment – net	$	129,193	$	125,776	$	72,031	$	70,608

During the three months ended March 31, 2024 and 2023, FPL recorded AFUDC of approximately $65 million and $39 million, respectively, including AFUDC – equity of $53 million and $30 million, respectively. During the three months ended March 31, 2024 and 2023, NEER capitalized interest on construction projects of approximately $97 million and $58 million, respectively.

Structured Payables – At March 31, 2024 and December 31, 2023, NEE's outstanding obligations under its structured payables program were approximately $0.6 billion and $4.7 billion, respectively, substantially all of which is included in accounts payable on NEE's condensed consolidated balance sheets.

Income Taxes – For taxable years beginning after 2022, renewable energy tax credits generated during the taxable year can be transferred to an unrelated purchaser for cash and are accounted for under Accounting Standards Codification 740 – Income Taxes. Proceeds resulting from the sales of renewable energy tax credits, approximately $198 million during the three months ended March 31, 2024, are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE's condensed consolidated statements of cash flows.

Noncontrolling Interests – At March 31, 2024 and December 31, 2023, approximately $8,870 million and $8,857 million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relates to differential membership interests. For the three months ended March 31, 2024 and 2023, NEE recorded earnings of approximately $348 million and $339 million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests on NEE's condensed consolidated statements of income.