Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024, 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.

	March 31, 2025
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,111	$	3,679	$	1,597	$	(4,860)	$	2,527
Interest rate contracts	$	—	$	166	$	—	$	(11)	155
Foreign currency contracts	$	—	$	—	$	—	$	(1)	(1)
Total derivative assets									$	2,681
FPL – commodity contracts	$	—	$	6	$	77	$	(15)	$	68
Liabilities:
NEE:
Commodity contracts	$	2,407	$	3,984	$	1,080	$	(4,561)	$	2,910
Interest rate contracts	$	—	$	845	$	—	$	(11)	834
Foreign currency contracts	$	—	$	107	$	—	$	(1)	106
Total derivative liabilities									$	3,850
FPL – commodity contracts	$	—	$	2	$	19	$	(8)	$	13
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	971
Noncurrent derivative assets(c)									1,710
Total derivative assets									$	2,681
Current derivative liabilities									$	1,659
Noncurrent derivative liabilities(d)									2,191
Total derivative liabilities									$	3,850
Net fair value by FPL balance sheet line item:
Current other assets									$	53
Noncurrent other assets									15
Total derivative assets									$	68
Current other liabilities									$	13

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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 $251 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $54 million in margin cash collateral received from counterparties.

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

	December 31, 2024
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,778	$	3,040	$	1,339	$	(4,032)	$	2,125
Interest rate contracts	$	—	$	577	$	—	$	(44)	533
Foreign currency contracts	$	—	$	—	$	—	$	(5)	(5)
Total derivative assets									$	2,653
FPL – commodity contracts	$	—	$	9	$	47	$	(16)	$	40
Liabilities:
NEE:
Commodity contracts	$	1,983	$	3,364	$	952	$	(3,557)	$	2,742
Interest rate contracts	$	—	$	284	$	—	$	(44)	240
Foreign currency contracts	$	—	$	104	$	—	$	(5)	99
Total derivative liabilities									$	3,081
FPL – commodity contracts	$	—	$	5	$	13	$	(11)	$	7
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	879
Noncurrent derivative assets(c)									1,774
Total derivative assets									$	2,653
Current derivative liabilities									$	1,073
Noncurrent derivative liabilities									2,008
Total derivative liabilities									$	3,081
Net fair value by FPL balance sheet line item:
Current other assets									$	31
Noncurrent other assets									9
Total derivative assets									$	40
Current other liabilities									$	3
Noncurrent other liabilities									4
Total derivative liabilities									$	7

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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 $154 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $321 million in margin cash collateral received from 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 March 31, 2025 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	March 31, 2025				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	580	$	442	Discounted cash flow	Forward price (per MWh)	$(4)	—	$309	$53
Forward contracts – gas	314		41		Discounted cash flow	Forward price (per MMBtu)	$(1)	—	$13	$4
Forward contracts – congestion	43		30		Discounted cash flow	Forward price (per MWh)	$(55)	—	$23	$—
Options – power	14		3		Option models	Implied correlations	64%	—	74%	68%
						Implied volatilities	37%	—	227%	73%
Options – primarily gas	119		153		Option models	Implied correlations	64%	—	100%	91%
						Implied volatilities	15%	—	145%	48%
Full requirements and unit contingent contracts	195		284		Discounted cash flow	Forward price (per MWh)	$20	—	$385	$85
						Customer migration rate(b)	—%	—	31%	1%
Forward contracts – other	332		127
Total	$	1,597	$	1,080

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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 March 31,
	2025				2024
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	387	$	34	$	951	$	24
Realized and unrealized gains (losses):
Included in operating revenues	109		—		33		—
Included in regulatory assets and liabilities	29		29		(16)		(16)
Purchases	38		—		23		—
Settlements	(11)		(5)		(299)		(6)
Issuances	(16)		—		(29)		—
Transfers in(a)	(17)		—		4		—
Transfers out(a)	(2)		—		—		—
Fair value of net derivatives based on significant unobservable inputs at March 31	$	517	$	58	$	667	$	2
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	86	$	—	$	(79)	$	—

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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:

	March 31, 2025				December 31, 2024
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(189)	MWh	—		(189)	MWh	—
Natural gas	(908)	MMBtu	520	MMBtu	(1,131)	MMBtu	503	MMBtu
Oil	(23)	barrels	—		(25)	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 March 31,
	2025		2024
	(millions)
Commodity contracts(a) – operating revenues (including $12 unrealized gains and $100 unrealized gains, respectively)	$	155	$	26
Foreign currency contracts – interest expense (including $3 unrealized losses and $16 unrealized losses, respectively)	(5)		(23)
Interest rate contracts – interest expense (including $973 unrealized losses and $267 unrealized gains, respectively)	(775)		578
Losses reclassified from AOCI to interest expense:
Foreign currency contracts	(1)		(1)
Total	$	(626)	$	580

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(a)For the three months ended March 31, 2025 and 2024, FPL recorded approximately $32 million of gains and $20 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.