Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020 and December 31, 2019, 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 (see Note 5 - Recurring Fair Value Measurements for netting information), as well as the location of the net derivative position on the condensed consolidated balance sheets.

	June 30, 2020
	Gross Basis				Net Basis
	Assets		Liabilities		Assets			Liabilities
	(millions)
NEE:
Commodity contracts	$	5,473	$	3,428	$	2,463		$	546
Interest rate contracts	38		1,470		8			1,440
Foreign currency contracts	—		67		(1		)	66
Total fair values	$	5,511	$	4,965	$	2,470		$	2,052
FPL:
Commodity contracts	$	4	$	13	$	2		$	11
Net fair value by NEE balance sheet line item:
Current derivative assets(a)					$	708
Noncurrent derivative assets(b)					1,762
Current derivative liabilities(c)								$	337
Noncurrent derivative liabilities								1,715
Total derivatives					$	2,470		$	2,052
Net fair value by FPL balance sheet line item:
Current other assets					$	2
Current other liabilities								$	11
Total derivatives					$	2		$	11

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(a) Reflects the netting of approximately $1 million in margin cash collateral received from counterparties.

(b) Reflects the netting of approximately $202 million in margin cash collateral received from counterparties.

(c) Reflects the netting of approximately $75 million in margin cash collateral paid to counterparties.

	December 31, 2019
	Gross Basis				Net Basis
	Assets		Liabilities		Assets		Liabilities
	(millions)
NEE:
Commodity contracts	$	5,050	$	3,201	$	2,350	$	576
Interest rate contracts	26		742		9		725
Foreign currency contracts	26		38		27		39
Total fair values	$	5,102	$	3,981	$	2,386	$	1,340
FPL:
Commodity contracts	$	4	$	14	$	3	$	13
Net fair value by NEE balance sheet line item:
Current derivative assets(a)					$	762
Noncurrent derivative assets(b)					1,624
Current derivative liabilities(c)							$	344
Current other liabilities(d)							133
Noncurrent derivative liabilities							863
Total derivatives					$	2,386	$	1,340
Net fair value by FPL balance sheet line item:
Current other assets					$	3
Current other liabilities							$	12
Noncurrent other liabilities							1
Total derivatives					$	3	$	13

———————————————

(a) Reflects the netting of approximately $2 million in margin cash collateral received from counterparties.

(b) Reflects the netting of approximately $139 million in margin cash collateral received from counterparties.

(c) Reflects the netting of approximately $66 million in margin cash collateral paid to counterparties.

(d) See Note 11 - Disposal of Businesses.

Net Notional Volumes

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

	June 30, 2020					December 31, 2019
Commodity Type	NEE			FPL		NEE			FPL
	(millions)
Power	(72	)	MWh	—	MWh	(81	)	MWh	1	MWh
Natural gas	(120	)	MMBtu	229	MMBtu	(1,723	)	MMBtu	161	MMBtu
Oil	(13	)	barrels	—		(13	)	barrels	—

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Schedule of 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,
	2020			2019			2020			2019
	(millions)
Commodity contracts(a) - operating revenues	$	(53	)	$	276		$	572		$	272
Foreign currency contracts - interest expense	16			11			(63		)	(8		)
Interest rate contracts - interest expense	64			(204		)	(841		)	(530		)
Losses reclassified from AOCI:
Interest rate contracts(b)	(1		)	(6		)	(27		)	(18		)
Foreign currency contracts - interest expense	(1		)	(1		)	(2		)	(2		)
Total	$	25		$	76		$	(361	)	$	(286	)

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(a) For the three and six months ended June 30, 2020, FPL recorded gains of approximately $1 million and losses of approximately $2 million, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets. For the three and six months ended June 30, 2019, FPL recorded gains of approximately $1 million and $4 million, respectively, related to commodity contracts as regulatory liabilities on its condensed consolidated balance sheets.

(b) For the six months ended June 30, 2020, approximately $23 million was reclassified to gains on disposal of businesses/assets - net (see Note 11 - Disposal of Businesses); remaining balances were reclassified to interest expense on NEE's condensed consolidated statements of income.