Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Jointly-Owned Electric Plants [Abstract]

Property, plant and equipment consists of the following at December 31:


	NEE				FPL
	2021		2020		2021		2020
	(millions)
Electric plant in service and other property	$	112,500	$	105,860	$	67,771	$	62,963
Nuclear fuel	1,606		1,604		1,170		1,143
Construction work in progress	14,141		10,639		6,326		5,361
Property, plant and equipment, gross	128,247		118,103		75,267		69,467
Accumulated depreciation and amortization	(28,899)		(26,300)		(17,040)		(15,588)
Property, plant and equipment – net	$	99,348	$	91,803	$	58,227	$	53,879

FPL – At December 31, 2021, FPL's gross investment in electric plant in service and other property for the electric generation, transmission, distribution and general facilities of FPL represented approximately 46%, 13%, 35% and 6%, respectively; the

respective amounts at December 31, 2020 were 47%, 12%, 35% and 6%. Substantially all of FPL's properties are subject to the lien of FPL's mortgage, which secures most debt securities issued by FPL. The weighted annual composite depreciation and amortization rate for FPL's electric plant in service, including capitalized software, but excluding the effects of decommissioning, dismantlement and the depreciation adjustments discussed in the following sentence, was approximately 3.8%, 3.8% and 3.9% for 2021, 2020 and 2019, respectively. In accordance with the 2016 rate agreement (see Note 1 – Rate Regulation – Base Rates Effective January 2017 through December 2021), FPL recorded reserve amortization (reversal) of approximately $429 million, $(1) million and $(357) million in 2021, 2020 and 2019, respectively. During each of 2021, 2020 and 2019, the FPL segment capitalized AFUDC at a rate of 6.22%, which amounted to approximately $124 million, $79 million and $80 million, respectively. During each of 2021, 2020 and 2019, Gulf Power capitalized AFUDC at a rate of 5.73%, which amounted to approximately $53 million, $38 million and $6 million, respectively.

NEER – At December 31, 2021, wind, solar and nuclear plants represented approximately 53%, 14% and 8%, respectively, of NEER's depreciable electric plant in service and other property; the respective amounts at December 31, 2020 were 55%, 13% and 8%. The estimated useful lives of NEER's plants range primarily from 30 to 35 years for wind plants, 30 to 35 years for solar plants and 23 to 47 years for nuclear plants. NEER's oil and gas production assets represented approximately 14% and 14% of NEER's depreciable electric plant in service and other property at December 31, 2021 and 2020, respectively. A number of NEER's generation, regulated transmission and pipeline facilities are encumbered by liens securing various financings. The net book value of NEER's assets serving as collateral was approximately $13.5 billion at December 31, 2021. Interest capitalized on construction projects amounted to approximately $139 million, $168 million and $135 million during 2021, 2020 and 2019, respectively.

Jointly-Owned Electric Plants – Certain NEE subsidiaries own undivided interests in the jointly-owned facilities described below, and are entitled to a proportionate share of the output from those facilities. The subsidiaries are responsible for their share of the operating costs, as well as providing their own financing. Accordingly, each subsidiary's proportionate share of the facilities and related revenues and expenses is included in the appropriate balance sheet and statement of income captions. NEE's and FPL's respective shares of direct expenses for these facilities are included in fuel, purchased power and interchange expense, O&M expenses, depreciation and amortization expense and taxes other than income taxes and other – net in NEE's and FPL's consolidated statements of income.

NEE's and FPL's proportionate ownership interest in jointly-owned facilities is as follows:


	December 31, 2021
	Ownership Interest		Gross Investment(a)		Accumulated Depreciation(a)		Construction Work in Progress
			(millions)
FPL:
St. Lucie Unit No. 2	85	%	$	2,284	$	1,044	$	90
Daniel Units Nos. 1 and 2(b)	50	%	$	759	$	274	$	16
Scherer Unit No. 3(c)	25	%	$	449	$	204	$	3
NEER:

Seabrook	88.23	%	$	1,330	$	453	$	58
Wyman Station Unit No. 4	91.19	%	$	30	$	11	$	—
Stanton	65	%	$	139	$	19	$	—
Transmission substation assets located in Seabrook, New Hampshire	88.23	%	$	114	$	8	$	22

______________________

(a)Excludes nuclear fuel.

(b)FPL intends to retire its share of these units in 2024. Net book value is reflected in other property on NEE's and FPL's consolidated balance sheets.

(c)Together with its joint interest owner, FPL intends to retire this unit in 2028. Net book value is reflected in other property on NEE's and FPL's consolidated balance sheets.