Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring 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 consolidated balance sheets.

	December 31, 2023
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,640	$	4,741	$	1,925	$	(6,171)	$	3,135
Interest rate contracts	$	—	$	304	$	—	$	81	385
Foreign currency contracts	$	—	$	—	$	—	$	—	—
Total derivative assets									$	3,520
FPL – commodity contracts	$	—	$	1	$	29	$	(3)	$	27
Liabilities:
NEE:
Commodity contracts	$	3,796	$	4,664	$	974	$	(6,531)	$	2,903
Interest rate contracts	$	—	$	553	$	—	$	81	634
Foreign currency contracts	$	—	$	49	$	—	$	—	49
Total derivative liabilities									$	3,586
FPL – commodity contracts	$	—	$	13	$	5	$	(3)	$	15
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,730
Noncurrent derivative assets(c)									1,790
Total derivative assets									$	3,520
Current derivative liabilities(d)									$	845
Noncurrent derivative liabilities									2,741
Total derivative liabilities									$	3,586
Net fair value by FPL balance sheet line item:
Current other assets									$	13
Noncurrent other assets									14
Total derivative assets									$	27
Current other liabilities									$	9
Noncurrent other liabilities									6
Total derivative liabilities									$	15

______________________

(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 $148 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $307 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $815 million in margin cash collateral paid to counterparties.

	December 31, 2022
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	5,372	$	7,559	$	2,094	$	(12,030)	$	2,995
Interest rate contracts	$	—	$	583	$	—	$	(49)	534
Foreign currency contracts	$	—	$	—	$	—	$	(4)	(4)
Total derivative assets									$	3,525
FPL – commodity contracts	$	—	$	11	$	25	$	(7)	$	29
Liabilities:
NEE:
Commodity contracts	$	7,185	$	7,620	$	2,948	$	(13,010)	$	4,743
Interest rate contracts	$	—	$	191	$	—	$	(49)	142
Foreign currency contracts	$	—	$	130	$	—	$	(4)	126
Total derivative liabilities									$	5,011
FPL – commodity contracts	$	—	$	4	$	16	$	(7)	$	13
Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,590
Noncurrent derivative assets(c)									1,935
Total derivative assets									$	3,525
Current derivative liabilities(d)									$	2,102
Noncurrent derivative liabilities(e)									2,909
Total derivative liabilities									$	5,011
Net fair value by FPL balance sheet line item:
Current other assets									$	19
Noncurrent other assets									10
Total derivative assets									$	29
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 $299 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $262 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $328 million in margin cash collateral paid to counterparties.

(e)Reflects the netting of approximately $1,213 million in margin cash collateral paid to counterparties

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, 2023
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	1,972	$	—		$	—	$	1,972
FPL – equity securities	$	12	$	—		$	—	$	12
Special use funds:(b)
NEE:
Equity securities	$	2,349	$	2,742	(c)	$	199	$	5,290
U.S. Government and municipal bonds	$	700	$	57		$	—	$	757
Corporate debt securities	$	3	$	620		$	—	$	623
Asset-backed securities	$	—	$	822		$	—	$	822
Other debt securities	$	6	$	14		$	—	$	20
FPL:
Equity securities	$	863	$	2,474	(c)	$	199	$	3,536
U.S. Government and municipal bonds	$	556	$	27		$	—	$	583
Corporate debt securities	$	3	$	455		$	—	$	458
Asset-backed securities	$	—	$	606		$	—	$	606
Other debt securities	$	5	$	6		$	—	$	11
Other investments:(d)
NEE:
Equity securities	$	50	$	—		$	—	$	50
U.S. Government and municipal bonds	$	288	$	3		$	—	$	291
Corporate debt securities	$	—	$	408		$	115	$	523
Other debt securities	$	—	$	196		$	15	$	211
FPL:
Equity securities	$	9	$	—		$	—	$	9

______________________

(a)Includes restricted cash equivalents of approximately $34 million ($11 million for FPL) in current 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 and FPL's 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 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 consolidated balance sheets.

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, 2023 are as follows:

Transaction Type	Fair Value at December 31, 2023				Valuation Technique(s)	Significant Unobservable Inputs	Range			Weighted-average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	500	$	470	Discounted cash flow	Forward price (per MWh(b))	$(3)	—	$210	$49
Forward contracts – gas	377		77		Discounted cash flow	Forward price (per MMBtu(c))	$1	—	$13	$3
Forward contracts – congestion	63		56		Discounted cash flow	Forward price (per MWh(b))	$(30)	—	$32	$—
Options – power	48		5		Option models	Implied correlations	50%	—	61%	57%
						Implied volatilities	33%	—	310%	119%
Options – primarily gas	100		97		Option models	Implied correlations	50%	—	61%	57%
						Implied volatilities	20%	—	233%	50%
Full requirements and unit contingent contracts	674		146		Discounted cash flow	Forward price (per MWh(b))	$(2)	—	$340	$67
						Customer migration rate(d)	—%	—	66%	4%
Forward contracts – other	163		123
Total	$	1,925	$	974

______________________

(a)Unobservable inputs were weighted by volume.

(b)Megawatt-hours

(c)One million British thermal units

(d)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,
	2023				2022				2021
	NEE		FPL		NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	(854)	$	9	$	170	$	8	$	1,374	$	(1)
Realized and unrealized gains (losses):
Included in operating revenues	2,792		—		(2,343)		—		(1,488)		—
Included in regulatory assets and liabilities	23		23		158		158		8		8
Purchases	412		—		542		—		243		—
Settlements	(1,521)		(11)		992		(157)		259		1
Issuances	(139)		—		(362)		—		(196)		—
Transfers in(a)	(129)		1		(4)		—		2		—
Transfers out(a)	367		2		(7)		—		(32)		—
Fair value of net derivatives based on significant unobservable inputs at December 31	$	951	$	24	$	(854)	$	9	$	170	$	8
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	1,482	$	—	$	(1,162)	$	—	$	(924)	$	—

______________________

(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.

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,
	2023		2022		2021
	(millions)
Commodity contracts(a) – operating revenues (including $2,502 unrealized gains, $2,346 unrealized losses and $2,235 unrealized losses, respectively)	$	2,513	$	(3,297)	$	(2,710)
Foreign currency contracts – interest expense (including $81 unrealized gains, $53 unrealized losses and $89 unrealized losses, respectively)	(62)		(61)		(89)
Interest rate contracts – interest expense (including $634 unrealized losses, $1,021 unrealized gains and $319 unrealized gains, respectively)	(226)		1,221		264
Losses reclassified from AOCI to interest expense:
Interest rate contracts	(1)		(5)		(7)
Foreign currency contracts	(2)		(3)		(3)
Total	$	2,222	$	(2,145)	$	(2,545)

______________________

(a)For the years ended December 31, 2023, 2022 and 2021, FPL recorded gains of approximately $5 million, $211 million and $7 million, respectively, related to commodity contracts as regulatory liabilities on its consolidated balance sheets.

Net notional volumes

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

	December 31, 2023				December 31, 2022
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(167)	MWh	—		(104)	MWh	—
Natural gas	(1,452)	MMBtu	717	MMBtu	(1,307)	MMBtu	258	MMBtu
Oil	(42)	barrels	—		(38)	barrels	—