Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

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 consolidated balance sheets.

	December 31, 2020
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	919	$	1,881	$	1,679	$	(2,325)	$	2,154
Interest rate contracts	$	—	$	81	$	—	$	(41)	40
Foreign currency contracts	$	—	$	57	$	—	$	(34)	23
Total derivative assets									$	2,217
FPL - commodity contracts	$	—	$	1	$	2	$	—	$	3
Liabilities:
NEE:
Commodity contracts	$	1,004	$	1,468	$	305	$	(2,277)	$	500
Interest rate contracts	$	—	$	1,042	$	—	$	(41)	1,001
Foreign currency contracts	$	—	$	43	$	—	$	(34)	9
Total derivative liabilities									$	1,510
FPL - commodity contracts	$	—	$	—	$	3	$	—	$	3
Net fair value by NEE balance sheet line item:
Current derivative assets									$	570
Noncurrent derivative assets(b)									1,647
Total derivative assets									$	2,217
Current derivative liabilities(c)									$	311
Noncurrent derivative liabilities									1,199
Total derivative liabilities									$	1,510
Net fair value by FPL balance sheet line item:
Current other assets									$	3
Current other liabilities									$	2
Noncurrent other liabilities									1
Total derivative liabilities									$	3

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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 consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.

(b)Reflects the netting of approximately $184 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $136 million in margin cash collateral paid to counterparties.

	December 31, 2019
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,229	$	2,082	$	1,739	$	(2,700)	$	2,350
Interest rate contracts	$	—	$	24	$	2	$	(17)	9
Foreign currency contracts	$	—	$	26	$	—	$	1	27
Total derivative assets									$	2,386
FPL - commodity contracts	$	—	$	3	$	1	$	(1)	$	3
Liabilities:
NEE:
Commodity contracts	$	1,365	$	1,446	$	390	$	(2,625)	$	576
Interest rate contracts	$	—	$	598	$	144	$	(17)	725
Foreign currency contracts	$	—	$	38	$	—	$	1	39
Total derivative liabilities									$	1,340
FPL - commodity contracts	$	—	$	5	$	9	$	(1)	$	13
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	762
Noncurrent derivative assets(c)									1,624
Total derivative assets									$	2,386
Current derivative liabilities(d)									$	344
Current other liabilities(e)									133
Noncurrent derivative liabilities									863
Total derivative liabilities									$	1,340
Net fair value by FPL balance sheet line item:
Current other assets									$	3
Current other liabilities									$	12
Noncurrent other liabilities									1
Total derivative liabilities									$	13

______________________

(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 consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.

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

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

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

(e)See Note 1 - Disposal of Businesses/Assets.

NEE's and FPL's financial assets and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:

	December 31, 2020
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE - equity securities	$	742	$	—		$	—	$	742
FPL - equity securities	$	78	$	—		$	—	$	78
Special use funds:(b)
NEE:
Equity securities	$	2,237	$	2,489	(c)	$	—	$	4,726
U.S. Government and municipal bonds	$	590	$	127		$	—	$	717
Corporate debt securities	$	1	$	870		$	—	$	871
Mortgage-backed securities	$	—	$	422		$	—	$	422
Other debt securities	$	—	$	124		$	—	$	124
FPL:
Equity securities	$	752	$	2,260	(c)	$	—	$	3,012
U.S. Government and municipal bonds	$	449	$	87		$	—	$	536
Corporate debt securities	$	—	$	627		$	—	$	627
Mortgage-backed securities	$	—	$	335		$	—	$	335
Other debt securities	$	—	$	119		$	—	$	119
Other investments:(d)
NEE:
Equity securities	$	62	$	—		$	—	$	62
Debt securities	$	91	$	127		$	—	$	218

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(a)Includes restricted cash equivalents of approximately $111 million ($56 million for FPL) in current other assets and $42 million ($17 million for FPL) in noncurrent other assets on the consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's consolidated balance sheet.

	December 31, 2019
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE - equity securities	$	363	$	—		$	—	$	363
FPL - equity securities	$	156	$	—		$	—	$	156
Special use funds:(b)
NEE:
Equity securities	$	1,875	$	2,088	(c)	$	—	$	3,963
U.S. Government and municipal bonds	$	567	$	150		$	—	$	717
Corporate debt securities	$	—	$	748		$	—	$	748
Mortgage-backed securities	$	—	$	517		$	—	$	517
Other debt securities	$	—	$	117		$	—	$	117
FPL:
Equity securities	$	596	$	1,895	(c)	$	—	$	2,491
U.S. Government and municipal bonds	$	429	$	106		$	—	$	535
Corporate debt securities	$	—	$	533		$	—	$	533
Mortgage-backed securities	$	—	$	395		$	—	$	395
Other debt securities	$	—	$	111		$	—	$	111
Other investments:(d)
NEE:
Equity securities	$	34	$	12		$	—	$	46
Debt securities	$	82	$	69		$	—	$	151

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(a)Includes restricted cash equivalents of approximately $60 million ($54 million for FPL) in current other assets and $64 million ($64 million for FPL) in noncurrent other assets on the consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's consolidated balance sheet.

Fair Value Inputs, Assets, Quantitative Information

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2020 are as follows:

Transaction Type	Fair Value at December 31, 2020				Valuation Technique(s)	Significant Unobservable Inputs	Range			Weighted-average(a)
	Assets		Liabilities
	(millions)
Forward contracts - power	$	792	$	(1)	Discounted cash flow	Forward price (per MWh)	$—	—	$137	$29
Forward contracts - gas	305		25		Discounted cash flow	Forward price (per MMBtu)	$1	—	$8	$3
Forward contracts - congestion	27		7		Discounted cash flow	Forward price (various)	$(6)	—	$30	$—
Options - power	35		10		Option models	Implied correlations	40%	—	84%	55%
						Implied volatilities	5%	—	357%	84%
Options - primarily gas	128		131		Option models	Implied correlations	40%	—	96%	55%
						Implied volatilities	16%	—	310%	36%
Full requirements and unit contingent contracts	363		121		Discounted cash flow	Forward price (per MWh)	$5	—	$330	$46
						Customer migration rate(b)	—%	—	122%	2%
Forward contracts - other	29		12
Total	$	1,679	$	305

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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)

————————————

(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:

	Years Ended December 31,
	2020				2019				2018
	NEE		FPL		NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	1,207	$	(8)	$	647	$	(36)	$	566	$	—
Realized and unrealized gains (losses):
Included in earnings(a)	547		—		923		—		35		(1)
Included in other comprehensive income (loss)(b)	1		—		5		—		7		—
Included in regulatory assets and liabilities	2		2		1		1		(18)		(18)
Purchases	191		—		141		—		152		(16)
Sales(c)	114		—		—		—		—		—
Settlements	(562)		6		(356)		25		28		(2)
Issuances	(123)		—		(87)		—		(115)		—
Impact of adoption of revenue standard	—		—		—		—		(30)		—
Transfers in(d)	18		(1)		(5)		—		—		—
Transfers out(d)	(21)		—		(62)		2		22		1
Fair value of net derivatives based on significant unobservable inputs at December 31	$	1,374	$	(1)	$	1,207	$	(8)	$	647	$	(36)
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date(e)	$	317	$	—	$	611	$	—	$	100	$	(1)

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(a)For the years ended December 31, 2020, 2019 and 2018, realized and unrealized gains of approximately $569 million, $956 million and $48 million are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.

(b)Included in net unrealized gains (losses) on foreign currency translation in the consolidated statements of comprehensive income.

(c)See Note 1 - Disposal of Businesses/Assets.

(d)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.

(e)For the years ended December 31, 2020, 2019 and 2018, unrealized gains of approximately $317 million, $638 million and $112 million are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.

Derivative instruments, gain (loss) in statement of financial performance

Gains (losses) related to NEE's derivatives are recorded in NEE's consolidated statements of income as follows:

	Years Ended December 31,
	2020		2019		2018
	(millions)
Commodity contracts:(a)
Operating revenues	$	352	$	762	$	377
Fuel, purchased power and interchange	—		—		(2)
Foreign currency contracts - interest expense	8		(7)		19
Interest rate contracts - interest expense	(421)		(699)		(280)
Losses reclassified from AOCI:
Interest rate contracts(b)	(35)		(32)		(30)
Foreign currency contracts - interest expense	(3)		(4)		(4)
Total	$	(99)	$	20	$	80

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(a)For the years ended December 31, 2020, 2019 and 2018, FPL recorded gains (losses) of approximately $6 million, $9 million and $(31) million, respectively, related to commodity contracts as regulatory liabilities (assets) on its consolidated balance sheets.

Net notional volumes

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

	December 31, 2020				December 31, 2019
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(90)	MWh(a)	—		(81)	MWh(a)	1	MWh(a)
Natural gas	(607)	MMBtu(b)	87	MMBtu(b)	(1,723)	MMBtu(b)	161	MMBtu(b)
Oil	(6)	barrels	—		(13)	barrels	—

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(a)Megawatt-hours

(b)One million British thermal units