Derivative Instruments (Tables)

9 Months Ended

Sep. 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 September 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.

	September 30, 2024
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,897	$	3,154	$	1,630	$	(4,350)	$	2,331
Interest rate contracts	$	—	$	150	$	—	$	(33)	117
Foreign currency contracts	$	—	$	7	$	—	$	(2)	5
Total derivative assets									$	2,453
FPL – commodity contracts	$	—	$	1	$	42	$	(11)	$	32
Liabilities:
NEE:
Commodity contracts	$	2,405	$	3,291	$	817	$	(4,260)	$	2,253
Interest rate contracts	$	—	$	1,257	$	—	$	(33)	1,224
Foreign currency contracts	$	—	$	51	$	—	$	(2)	49
Total derivative liabilities									$	3,526
FPL – commodity contracts	$	—	$	5	$	9	$	(8)	$	6
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	875
Noncurrent derivative assets(c)									1,578
Total derivative assets									$	2,453
Current derivative liabilities(d)									$	1,122
Noncurrent derivative liabilities									2,404
Total derivative liabilities									$	3,526
Net fair value by FPL balance sheet line item:
Current other assets									$	17
Noncurrent other assets									15
Total derivative assets									$	32
Current other liabilities									$	4
Noncurrent other liabilities									2
Total derivative liabilities									$	6

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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 $112 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $187 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $209 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 September 30, 2024 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	September 30, 2024				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	647	$	400	Discounted cash flow	Forward price (per MWh)	$(3)	—	$162	$48
Forward contracts – gas	314		23		Discounted cash flow	Forward price (per MMBtu)	$1	—	$13	$3
Forward contracts – congestion	53		48		Discounted cash flow	Forward price (per MWh)	$(48)	—	$22	$—
Options – power	10		3		Option models	Implied correlations	35%	—	38%	36%
						Implied volatilities	81%	—	166%	117%
Options – primarily gas	89		83		Option models	Implied correlations	35%	—	100%	99%
						Implied volatilities	18%	—	150%	56%
Full requirements and unit contingent contracts	301		105		Discounted cash flow	Forward price (per MWh)	$20	—	$284	$70
						Customer migration rate(b)	—%	—	31%	1%
Forward contracts – other	216		155
Total	$	1,630	$	817

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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 September 30,
	2024				2023
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at June 30	$	626	$	57	$	755	$	13
Realized and unrealized gains (losses):
Included in operating revenues	335		—		87		—
Included in regulatory assets and liabilities	(6)		(6)		(2)		(2)
Purchases	69		—		27		—
Settlements	(212)		(6)		(320)		(6)
Issuances	(55)		—		(18)		—
Transfers in(a)	13		(12)		(61)		—
Transfers out(a)	43		—		223		2
Fair value of net derivatives based on significant unobservable inputs at September 30	$	813	$	33	$	691	$	7
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	265	$	—	$	85	$	—

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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.

	Nine Months Ended September 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	552		—		2,114		—
Included in regulatory assets and liabilities	51		51		5		5
Purchases	105		—		356		—
Settlements	(812)		(30)		(1,045)		(9)
Issuances	(94)		—		(119)		—
Transfers in(a)	18		(12)		(46)		—
Transfers out(a)	42		—		280		2
Fair value of net derivatives based on significant unobservable inputs at September 30	$	813	$	33	$	691	$	7
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	243	$	—	$	994	$	—

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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:

	September 30, 2024				December 31, 2023
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(159)	MWh	—		(167)	MWh	—
Natural gas	(1,295)	MMBtu	478	MMBtu	(1,452)	MMBtu	717	MMBtu
Oil	(28)	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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(millions)
Commodity contracts(a) – operating revenues (including $577 unrealized gains, $362 unrealized losses, $342 unrealized gains and $1,794 unrealized gains, respectively)	$	636	$	(318)	$	434	$	1,595
Foreign currency contracts – interest expense (including $25 unrealized gains, $5 unrealized losses, $3 unrealized gains and $66 unrealized gains, respectively)	24		(6)		(6)		(73)
Interest rate contracts – interest expense (including $944 unrealized losses, $658 unrealized gains, $859 unrealized losses and $634 unrealized gains, respectively)	(899)		766		(274)		915
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	—		—		1		—
Foreign currency contracts	(1)		(1)		(2)		(2)
Total	$	(240)	$	441	$	153	$	2,435

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(a)For the three and nine months ended September 30, 2024, FPL recorded approximately $6 million of losses and $46 million of gains, respectively, related to commodity contracts as regulatory assets and regulatory liabilities, respectively, on its condensed consolidated balance sheets. For the three and nine months ended September 30, 2023, FPL recorded approximately $2 million of gains and $7 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.