Non-Derivative Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Financial assets and liabilities and other fair value measurements

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:

	September 30, 2023
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	677	$	—		$	—	$	677
FPL – equity securities	$	36	$	—		$	—	$	36
Special use funds:(b)
NEE:
Equity securities	$	2,237	$	2,520	(c)	$	—	$	4,757
U.S. Government and municipal bonds	$	699	$	43		$	—	$	742
Corporate debt securities	$	—	$	554		$	—	$	554
Asset-backed securities	$	—	$	775		$	—	$	775
Other debt securities	$	—	$	12		$	—	$	12
FPL:
Equity securities	$	903	$	2,280	(c)	$	—	$	3,183
U.S. Government and municipal bonds	$	572	$	15		$	—	$	587
Corporate debt securities	$	—	$	389		$	—	$	389
Asset-backed securities	$	—	$	582		$	—	$	582
Other debt securities	$	—	$	5		$	—	$	5
Other investments:(d)
NEE:
Equity securities	$	49	$	—		$	—	$	49
U.S. Government and municipal bonds	$	291	$	265		$	—	$	556
Corporate debt securities	$	—	$	358		$	114	$	472
Other debt securities	$	—	$	190		$	15	$	205
FPL:
Equity securities	$	9	—			$	—	$	9
Debt securities	$	—	$	262		$	—	$	262

———————————————

(a)Includes restricted cash equivalents of approximately $20 million ($11 million for FPL) in current other assets on the condensed 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 and FPL's condensed consolidated balance sheets.

	December 31, 2022
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	961	$	—		$	—	$	961
FPL – equity securities	$	36	$	—		$	—	$	36
Special use funds:(b)
NEE:
Equity securities	$	2,062	$	2,375	(c)	$	—	$	4,437
U.S. Government and municipal bonds	$	641	$	63		$	—	$	704
Corporate debt securities	$	6	$	716		$	—	$	722
Asset-backed securities	$	—	$	615		$	—	$	615
Other debt securities	$	1	$	19		$	—	$	20
FPL:
Equity securities	$	743	$	2,162	(c)	$	—	$	2,905
U.S. Government and municipal bonds	$	505	$	29		$	—	$	534
Corporate debt securities	$	6	$	547		$	—	$	553
Asset-backed securities	$	—	$	473		$	—	$	473
Other debt securities	$	1	$	11		$	—	$	12
Other investments:(d)
NEE:
Equity securities	$	30	$	1		$	—	$	31
U.S. Government and municipal bonds	$	117	$	118		$	—	$	235
Corporate debt securities	$	—	$	125		$	108	$	233
Other debt securities	$	—	$	57		$	10	$	67
FPL:
Equity securities	$	9	$	—		$	—	$	9
Debt securities	$	—	$	114		$	—	$	114

———————————————

(a)Includes restricted cash equivalents of approximately $69 million ($33 million for FPL) in current other assets on the condensed 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 and FPL's condensed consolidated balance sheets.

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, 2023 are as follows:

	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	September 30, 2023				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	543	$	482	Discounted cash flow	Forward price (per MWh)	$(6)	—	$166	$49
Forward contracts – gas	343		50		Discounted cash flow	Forward price (per MMBtu)	$1	—	$15	$4
Forward contracts – congestion	70		34		Discounted cash flow	Forward price (per MWh)	$(20)	—	$30	$1
Options – power	44		9		Option models	Implied correlations	49%	—	63%	58%
						Implied volatilities	52%	—	190%	110%
Options – primarily gas	129		126		Option models	Implied correlations	49%	—	63%	58%
						Implied volatilities	18%	—	140%	51%
Full requirements and unit contingent contracts	481		280		Discounted cash flow	Forward price (per MWh)	$(2)	—	$427	$69
						Customer migration rate(b)	—%	—	65%	6%
Forward contracts – other	155		93
Total	$	1,765	$	1,074

———————————————

(a)Unobservable inputs were weighted by volume.

(b)Applies only to full requirements contracts.

Fair Value, by Balance Sheet Grouping

The carrying amounts of commercial paper and other short-term debt approximate their fair values. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:

	September 30, 2023					December 31, 2022
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)
NEE:
Special use funds(a)	$	1,181	$	1,181		$	998	$	999
Other receivables, net of allowances(b)	$	696	$	696		$	246	$	246
Long-term debt, including current portion	$	67,162	$	60,952	(c)	$	61,889	$	57,892	(c)
FPL:
Special use funds(a)	$	850	$	850		$	744	$	744
Long-term debt, including current portion	$	24,889	$	22,275	(c)	$	21,002	$	19,364	(c)

———————————————

(a)Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis (Level 2).

(b)Approximately $475 million and $25 million is included in current other assets and $221 million and $221 million is included in noncurrent other assets on NEE's condensed consolidated balance sheets at September 30, 2023 and December 31, 2022, respectively (primarily Level 3).

(c)At September 30, 2023 and December 31, 2022, substantially all is Level 2 for NEE and FPL.

Unrealized Gains (Losses) Recognized On Equity Securities Still Held at The Reporting Date

Unrealized gains (losses) recognized on equity securities held at September 30, 2023 and 2022 are as follows:

	NEE								FPL
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022		2023		2022		2023		2022
	(millions)
Unrealized gains (losses)	$	(180)	$	(222)	$	396	$	(1,317)	$	(114)	$	(135)	$	279	$	(857)

Gains and Losses on Available-for-sale Debt Securities

Realized gains and losses and proceeds from the sale or maturity of available for sale debt securities are as follows:

	NEE								FPL
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022		2023		2022		2023		2022
	(millions)
Realized gains	$	12	$	8	$	31	$	26	$	11	$	6	$	27	$	20
Realized losses	$	64	$	41	$	140	$	100	$	60	$	36	$	122	$	79
Proceeds from sale or maturity of securities	$	781	$	681	$	1,801	$	1,901	$	688	$	324	$	1,428	$	1,001

The unrealized gains and unrealized losses on available for sale debt securities and the fair value of available for sale debt securities in an unrealized loss position are as follows:

	NEE				FPL
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(millions)
Unrealized gains	$	5	$	4	$	4	$	3
Unrealized losses(a)	$	260	$	285	$	152	$	193
Fair value	$	2,797	$	2,315	$	1,480	$	1,466

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(a)    Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at September 30, 2023 and December 31, 2022 were not material to NEE or FPL.