Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023, 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.

	June 30, 2024
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,123	$	4,056	$	1,580	$	(5,255)	$	2,504
Interest rate contracts	$	—	$	323	$	—	$	(11)	312
Foreign currency contracts	$	—	$	—	$	—	$	—	—
Total derivative assets									$	2,816
FPL – commodity contracts	$	—	$	—	$	76	$	(19)	$	57
Liabilities:
NEE:
Commodity contracts	$	2,838	$	4,352	$	954	$	(5,305)	$	2,839
Interest rate contracts	$	—	$	488	$	—	$	(11)	477
Foreign currency contracts	$	—	$	70	$	—	$	—	70
Total derivative liabilities									$	3,386
FPL – commodity contracts	$	—	$	18	$	19	$	(19)	$	18
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,218
Noncurrent derivative assets(c)									1,598
Total derivative assets									$	2,816
Current derivative liabilities(d)									$	904
Noncurrent derivative liabilities									2,482
Total derivative liabilities									$	3,386
Net fair value by FPL balance sheet line item:
Current other assets									$	28
Noncurrent other assets									29
Total derivative assets									$	57
Current other liabilities									$	15
Noncurrent other liabilities									3
Total derivative liabilities									$	18

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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 $54 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $249 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $353 million in margin cash collateral paid to counterparties.

	December 31, 2023
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,640	$	4,741	$	1,925	$	(6,171)	$	3,135
Interest rate contracts	$	—	$	304	$	—	$	81	385
Foreign currency contracts	$	—	$	—	$	—	$	—	—
Total derivative assets									$	3,520
FPL – commodity contracts	$	—	$	1	$	29	$	(3)	$	27
Liabilities:
NEE:
Commodity contracts	$	3,796	$	4,664	$	974	$	(6,531)	$	2,903
Interest rate contracts	$	—	$	553	$	—	$	81	634
Foreign currency contracts	$	—	$	49	$	—	$	—	49
Total derivative liabilities									$	3,586
FPL – commodity contracts	$	—	$	13	$	5	$	(3)	$	15
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,730
Noncurrent derivative assets(c)									1,790
Total derivative assets									$	3,520
Current derivative liabilities(d)									$	845
Noncurrent derivative liabilities									2,741
Total derivative liabilities									$	3,586
Net fair value by FPL balance sheet line item:
Current other assets									$	13
Noncurrent other assets									14
Total derivative assets									$	27
Current other liabilities									$	9
Noncurrent other liabilities									6
Total derivative liabilities									$	15

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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 $148 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $307 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $815 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 June 30, 2024 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	June 30, 2024				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	517	$	479	Discounted cash flow	Forward price (per MWh)	$(2)	—	$318	$51
Forward contracts – gas	362		109		Discounted cash flow	Forward price (per MMBtu)	$—	—	$13	$3
Forward contracts – congestion	49		55		Discounted cash flow	Forward price (per MWh)	$(46)	—	$36	$—
Options – power	24		5		Option models	Implied correlations	36%	—	42%	40%
						Implied volatilities	41%	—	582%	109%
Options – primarily gas	80		76		Option models	Implied correlations	36%	—	100%	96%
						Implied volatilities	15%	—	150%	54%
Full requirements and unit contingent contracts	395		153		Discounted cash flow	Forward price (per MWh)	$17	—	$366	$71
						Customer migration rate(b)	—%	—	26%	1%
Forward contracts – other	153		77
Total	$	1,580	$	954

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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 June 30,
	2024				2023
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at March 31	$	667	$	2	$	456	$	(11)
Realized and unrealized gains (losses):
Included in operating revenues	183		—		820		—
Included in regulatory assets and liabilities	73		73		25		25
Purchases	14		—		111		—
Settlements	(299)		(18)		(416)		(1)
Issuances	(11)		—		(28)		—
Transfers in(a)	—		—		6		—
Transfers out(a)	(1)		—		(219)		—
Fair value of net derivatives based on significant unobservable inputs at June 30	$	626	$	57	$	755	$	13
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	151	$	—	$	738	$	—

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(a)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.

	Six Months Ended June 30,
	2024				2023
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	951	$	24	$	(854)	$	9
Realized and unrealized gains (losses):
Included in operating revenues	217		—		2,028		—
Included in regulatory assets and liabilities	57		57		8		8
Purchases	36		—		329		—
Settlements	(601)		(24)		(725)		(4)
Issuances	(39)		—		(102)		—
Transfers in(a)	5		—		16		—
Transfers out(a)	—		—		55		—
Fair value of net derivatives based on significant unobservable inputs at June 30	$	626	$	57	$	755	$	13
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	(4)	$	—	$	1,375	$	—

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(a)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.

Net notional volumes

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

	June 30, 2024				December 31, 2023
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(153)	MWh	—		(167)	MWh	—
Natural gas	(1,132)	MMBtu	594	MMBtu	(1,452)	MMBtu	717	MMBtu
Oil	(31)	barrels	—		(42)	barrels	—

Not Designated as Hedging Instrument

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(millions)
Commodity contracts(a) – operating revenues (including $334 unrealized losses, $1,014 unrealized gains, $234 unrealized losses and $2,156 unrealized gains, respectively)	$	(228)	$	895	$	(202)	$	1,912
Foreign currency contracts – interest expense (including $6 unrealized losses, $87 unrealized gains, $23 unrealized losses and $71 unrealized gains, respectively)	(7)		(48)		(30)		(67)
Interest rate contracts – interest expense (including $182 unrealized losses, $492 unrealized gains, $85 unrealized gains and $24 unrealized losses, respectively)	48		633		625		149
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	1		—		—		—
Foreign currency contracts	(1)		(1)		—		(2)
Total	$	(187)	$	1,479	$	393	$	1,992

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(a)For the three and six months ended June 30, 2024, FPL recorded gains of approximately $72 million and $53 million, respectively, related to commodity contracts as regulatory liabilities on its condensed consolidated balance sheets. For the three and six months ended June 30, 2023, FPL recorded approximately $15 million of gains and $9 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.