NEXTERA ENERGY INC - Quarter Report: 2024 June (Form 10-Q)

Depreciation and amortization Taxes other than income taxes and other – net Total operating expenses – net

GAINS ON DISPOSAL OF BUSINESSES/ASSETS – NET

OPERATING INCOME OTHER INCOME (DEDUCTIONS)Interest expense()()()()Equity in earnings of equity method investees Allowance for equity funds used during construction

Equity in earnings of equity method investees()()Distributions of earnings from equity method investees Gains on disposal of businesses, assets and investments – net()()Recoverable storm-related costs()()Other – net ()Changes in operating assets and liabilities:Current assets() Noncurrent assets()()Current liabilities ()Noncurrent liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditures of FPL()()Independent power and other investments of NEER()()Nuclear fuel purchases()()Other capital expenditures()()Sale of independent power and other investments of NEER Proceeds from sale or maturity of securities in special use funds and other investments Purchases of securities in special use funds and other investments()()Other – net() Net cash used in investing activities()()CASH FLOWS FROM FINANCING ACTIVITIESIssuances of long-term debt, including premiums and discounts Retirements of long-term debt()()Net change in commercial paper() Proceeds from other short-term debt Repayments of other short-term debt()()Payments to related parties under a cash sweep and credit support agreement – net()()Issuances of common stock/equity units – net() Dividends on common stock()()Other – net()()Net cash provided by financing activities Effects of currency translation on cash, cash equivalents and restricted cash() Net decrease in cash, cash equivalents and restricted cash()()Cash, cash equivalents and restricted cash at beginning of period Cash, cash equivalents and restricted cash at end of period$ $ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONCash paid for interest (net of amount capitalized)$ $ Cash paid (received) for income taxes – net$()$ SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIESAccrued property additions$ $

Right-of-use asset in exchange for finance lease liability

$ $

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions, except per share amounts)

(unaudited)

Common Stock

Additional

Paid-In

Capital

Accumulated
Other
Comprehensive
Loss

Retained

Earnings

Total Common

Shareholders'

Equity

Non-

controlling

Interests

Total
Equity

Redeemable Non-controlling Interests

Three Months Ended June 30, 2024

Aggregate

Par Value

Balances, March 31, 2024

()

Net income (loss)

—

()

Issuances of common stock/equity units – net

—

()

—

()

—

Share-based payment activity

—

Dividends on common stock(a)

—

()

—

Other comprehensive loss

—

()

—

()

—

Premium on equity units

—

()

—

()

—

Other differential membership interests activity

—

()

Other – net

—

()

Balances, June 30, 2024

()

———————————————

(a) for the three months ended June 30, 2024.

Common Stock

Additional
Paid-In
Capital

Accumulated

Other

Comprehensive

Loss

Retained
Earnings

Total
Common
Shareholders'
Equity

Non-
controlling
Interests

Total
Equity

Redeemable Non-controlling Interests

Six Months Ended June 30, 2024

Aggregate
Par Value

Balances, December 31, 2023

()

Net income (loss)

—

()

Issuances of common stock/equity units – net

—

()

—

()

—

Share-based payment activity

—

Dividends on common stock(a)

—

()

—

Other comprehensive loss

—

()

—

()

—

Premium on equity units

—

()

—

()

—

Other differential membership interests activity

—

()

Other – net

—

()

Balances, June 30, 2024

()

———————————————

(a) for each of the three months ended June 30, 2024 and March 31, 2024.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions, except per share amounts)

(unaudited)

Common Stock

Additional

Paid-In

Capital

Accumulated

Other

Comprehensive

Loss

Retained

Earnings

Total

Common

Shareholders'

Equity

Non-

controlling

Interests

Total

Equity

Redeemable Non-controlling Interests

Three Months Ended June 30, 2023

Aggregate

Par Value

Balances, March 31, 2023

()

Net income (loss)

—

()

Share-based payment activity

—

Dividends on common stock(a)

—

()

—

Other comprehensive income

—

Other differential membership interests activity

—

()

—

()

Disposal of subsidiaries with noncontrolling interests(b)

—

()

—

Other – net

—

()

—

Balances, June 30, 2023

()

———————————————

(a) for the three months ended June 30, 2023.

(b)

Common Stock

Additional
Paid-In
Capital

Accumulated
Other
Comprehensive
Loss

Retained
Earnings

Total
Common
Shareholders'
Equity

Non-
controlling
Interests

Total
Equity

Redeemable
Non-controlling
Interests

Six Months Ended June 30, 2023

Aggregate
Par Value

Balances, December 31, 2022

()

Net income (loss)

—

()

Share-based payment activity

—

Dividends on common stock(a)

—

()

—

Other comprehensive income

—

Issuances of common stock/equity units – net

—

Other differential membership interests activity

—

()

—

()

Disposal of subsidiaries with noncontrolling interests(b)

—

()

—

Other – net

—

()

—

()

Balances, June 30, 2023

()

_______________________

(a) for each of the three months ended June 30, 2023 and March 31, 2023.

(b)

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
OPERATING REVENUES	$	$	$	$
OPERATING EXPENSES
Fuel, purchased power and interchange
Other operations and maintenance
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY	$	$

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)


	Six Months Ended June 30,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	$
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
Nuclear fuel and other amortization
Deferred income taxes
Cost recovery clauses and franchise fees
Recoverable storm-related costs	()	()
Other – net	()
Changes in operating assets and liabilities:
Current assets	()	()
Noncurrent assets	()	()
Current liabilities
Noncurrent liabilities	()
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	()	()
Nuclear fuel purchases	()	()
Proceeds from sale or maturity of securities in special use funds
Purchases of securities in special use funds	()	()
Other – net	()
Net cash used in investing activities	()	()
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts
Retirements of long-term debt	()	()
Net change in commercial paper	()	()
Repayments of other short-term debt	()
Capital contributions from NEE
Dividends to NEE	()	()
Other – net	()	()
Net cash provided by financing activities
Net increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period
Cash, cash equivalents and restricted cash at end of period	$	$
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)	$	$
Cash paid for income taxes – net	$	$
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	$

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY

(millions)

(unaudited)

Three Months Ended June 30, 2024

Common
Stock

Additional
Paid-In Capital

Retained
Earnings

Common
Shareholder's
Equity

Balances, March 31, 2024

Net income

—

Dividends to NEE

—

()

Balances, June 30, 2024

Six Months Ended June 30, 2024

Common
Stock

Additional
Paid-In Capital

Retained
Earnings

Common
Shareholder's
Equity

Balances, December 31, 2023

Net income

—

Capital contributions from NEE

—

Dividends to NEE

—

()

Other

—

()

Balances, June 30, 2024

Three Months Ended June 30, 2023

Common
Stock

Additional
Paid-In Capital

Retained
Earnings

Common
Shareholder's
Equity

Balances, March 31, 2023

Net income

—

Dividends to NEE

—

()

Balances, June 30, 2023

Six Months Ended June 30, 2023

Common
Stock

Additional
Paid-In Capital

Retained
Earnings

Common
Shareholder's
Equity

Balances, December 31, 2022

Net income

—

Dividends to NEE

—

()

Distribution of a subsidiary to NEE

—

()

—

Other

—

()

Balances, June 30, 2023

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The accompanying condensed consolidated financial statements should be read in conjunction with the 2023 Form 10-K. In the opinion of NEE and FPL management, all adjustments considered necessary for fair financial statement presentation have been made. All adjustments are normal and recurring unless otherwise noted. Certain amounts included in the prior year's condensed consolidated financial statements have been reclassified to conform to the current year's presentation. The results of operations for an interim period generally will not give a true indication of results for the year.

billion ($ billion at FPL) and $ billion ($ billion at FPL) for the three months ended June 30, 2024 and 2023, respectively, and $ billion ($ billion at FPL) and $ billion ($ billion at FPL) for the six months ended June 30, 2024 and 2023, respectively. NEE's and FPL's receivables are primarily associated with revenues earned from contracts with customers, as well as derivative and lease transactions at NEER, and consist of both billed and unbilled amounts, which are recorded in customer receivables and other receivables on NEE's and FPL's condensed consolidated balance sheets. Receivables represent unconditional rights to consideration and reflect the differences in timing of revenue recognition and cash collections. For substantially all of NEE's and FPL's receivables, regardless of the type of revenue transaction from which the receivable originated, customer and counterparty credit risk is managed in the same manner and the terms and conditions of payment are similar.

FPL – FPL’s revenues are derived primarily from tariff-based sales that result from providing electricity to retail customers in Florida with no defined contractual term. Electricity sales to retail customers account for approximately % of FPL’s operating revenues, the majority of which are to residential customers. FPL's retail customers receive a bill monthly based on the amount of monthly kWh usage with payment due monthly. For these types of sales, FPL recognizes revenue as electricity is delivered and billed to customers, as well as an estimate for electricity delivered and not yet billed. The billed and unbilled amounts represent the value of electricity delivered to the customer. At June 30, 2024 and December 31, 2023, FPL's unbilled revenues amounted to approximately $ million and $ million, respectively, and are included in customer receivables on NEE's and FPL's condensed consolidated balance sheets. Certain contracts with customers contain a fixed price which primarily relate to certain power purchase agreements with maturity dates through 2041. As of June 30, 2024, FPL expects to record approximately $ million of revenues related to the fixed capacity price components of such contracts over the remaining terms of the related contracts as the capacity is provided. These contracts also contain a variable price component for energy usage which FPL recognizes as revenue as the energy is delivered based on rates stipulated in the respective contracts.

billion of revenues related to the fixed price components of such contracts over the remaining terms of the related contracts as the capacity is provided. The power purchase agreements also contain a variable price component for energy usage which NEER recognizes as revenue as the energy is delivered based on rates stipulated in the respective contracts.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

At June 30, 2024, NEE's AOCI included immaterial amounts related to discontinued interest rate cash flow hedges with expiration dates through October 2033 and foreign currency cash flow hedges with expiration dates through September 2030.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $()$ Interest rate contracts$ $ $ $() Foreign currency contracts$ $ $ $ Total derivative assets$

FPL – commodity contracts

$ $ $ $()$ Liabilities:NEE:Commodity contracts$ $ $ $()$ Interest rate contracts$ $ $ $() Foreign currency contracts$ $ $ $ Total derivative liabilities$

FPL – commodity contracts

$ $ $ $()$ Net fair value by NEE balance sheet line item:

Current derivative assets(b)

Noncurrent derivative assets(c)

Total derivative assets$

Current derivative liabilities(d)

Noncurrent derivative liabilities

Total derivative liabilities$ Net fair value by FPL balance sheet line item:Current other assets$ Noncurrent other assets Total derivative assets$ Current other liabilities$ Noncurrent other liabilities Total derivative liabilities$

———————————————

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

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

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

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

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $()$ Interest rate contracts$ $ $ $ Foreign currency contracts$ $ $ $ Total derivative assets$

FPL – commodity contracts

$ $ $ $()$ Liabilities:NEE:Commodity contracts$ $ $ $()$ Interest rate contracts$ $ $ $ Foreign currency contracts$ $ $ $ Total derivative liabilities$

FPL – commodity contracts

$ $ $ $()$ Net fair value by NEE balance sheet line item:

Current derivative assets(b)

Noncurrent derivative assets(c)

Total derivative assets$

Current derivative liabilities(d)

Noncurrent derivative liabilities

———————————————

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

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

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

At June 30, 2024 and December 31, 2023, NEE had approximately $ million ( at FPL) and $ million ($ million at FPL), respectively, in margin cash collateral received from counterparties that was not offset against derivative assets in the above presentation. These amounts are included in current other liabilities on NEE's condensed consolidated balance sheets. Additionally, at June 30, 2024 and December 31, 2023, NEE had approximately $ million ( at FPL) and $ million ( at FPL), respectively, in margin cash collateral paid to counterparties that was not offset against derivative assets or liabilities in the above presentation. These amounts are included in current other assets on NEE's condensed consolidated balance sheets.

Significant Unobservable Inputs Used in Recurring Fair Value Measurements – The valuation of certain commodity contracts requires the use of significant unobservable inputs. All forward price, implied volatility, implied correlation and interest rate inputs used in the valuation of such contracts are directly based on third-party market data, such as broker quotes and exchange settlements, when that data is available. If third-party market data is not available, then industry standard methodologies are used to develop inputs that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs, including some forward prices, implied volatilities and interest rates used for determining fair value are updated daily to reflect the best available market information. Unobservable inputs which are related to observable inputs, such as illiquid portions of forward price or volatility curves, are updated daily as well, using industry standard techniques such as interpolation and extrapolation, combining observable forward inputs supplemented by historical market and other relevant data. Other unobservable inputs, such as implied correlations, block-to-hourly price shaping, customer migration rates from full

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ Discounted cash flowForward price (per MWh)$()—$$

Forward contracts – gas

Discounted cash flowForward price (per MMBtu)$—$$

Forward contracts – congestion

Discounted cash flowForward price (per MWh)$()—$$

Options – power

Option modelsImplied correlations%—%%Implied volatilities%—%%

Options – primarily gas

Option modelsImplied correlations%—%%Implied volatilities%—%%

Full requirements and unit contingent contracts

Discounted cash flowForward price (per MWh)$—$$

Customer migration rate(b)

%—%%

Forward contracts – other

Total$ $

———————————————

(a)Unobservable inputs were weighted by volume.

(b)Applies only to full requirements contracts.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $()Realized and unrealized gains (losses): Included in operating revenues Included in regulatory assets and liabilities Purchases Settlements()()()()Issuances() ()

Transfers in(a)

Transfers out(a)

() ()

Fair value of net derivatives based on significant unobservable inputs at June 30

$ $ $ $ Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date$ $ $ $

———————————————

(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.


	Six Months Ended June 30,
	2024			2023
	NEE		FPL	NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$		$	$	()	$
Realized and unrealized gains (losses):
Included in operating revenues

Included in regulatory assets and liabilities
Purchases

Settlements	()		()	()		()
Issuances	()			()

Transfers in(a)
Transfers out(a)
Fair value of net derivatives based on significant unobservable inputs at June 30	$		$	$		$
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	()	$	$		$

———————————————

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

unrealized losses, $ unrealized gains, $ unrealized losses and $ unrealized gains, respectively)$()$ $()$

Foreign currency contracts – interest expense (including $ unrealized losses, $ unrealized gains, $ unrealized losses and $ unrealized gains, respectively)

()()()()

Interest rate contracts – interest expense (including $ unrealized losses, $ unrealized gains, $ unrealized gains and $ unrealized losses, respectively)

Gains (losses) reclassified from AOCI to interest expense:

Interest rate contracts

Foreign currency contracts

()() ()Total$()$ $ $

———————————————

(a)For the three and six months ended June 30, 2024, FPL recorded gains of approximately $ million and $ million, respectively, related to commodity contracts as regulatory liabilities on its condensed consolidated balance sheets. For the three and six months ended June 30, 2023, FPL recorded approximately $ million of gains and $ million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.

Notional Volumes of Derivative Instruments – The following table represents net notional volumes associated with derivative instruments that are required to be reported at fair value in NEE's and FPL's condensed consolidated financial statements. The table includes significant volumes of transactions that have minimal exposure to commodity price changes because they are variably priced agreements. These volumes are only an indication of the commodity exposure that is managed through the use of derivatives. They do not represent net physical asset positions or non-derivative positions and the related hedges, nor do they represent NEE’s and FPL’s net economic exposure, but only the net notional derivative positions that fully or partially hedge the related asset positions.

)MWh ()MWh Natural gas()MMBtu MMBtu()MMBtu MMBtuOil()barrels ()barrels

At June 30, 2024 and December 31, 2023, NEE had interest rate contracts with a net notional amount of approximately $ billion and $ billion, respectively, and foreign currency contracts with a notional amount of approximately $ billion and $ billion, respectively.

Credit-Risk-Related Contingent Features – Certain derivative instruments contain credit-risk-related contingent features including, among other things, the requirement to maintain an investment grade credit rating from specified credit rating agencies and certain financial ratios, as well as credit-related cross-default and material adverse change triggers. At June 30, 2024 and December 31, 2023, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $ billion ($ million for FPL) and $ billion ($ million for FPL), respectively.

If the credit-risk-related contingent features underlying these derivative agreements were triggered, certain subsidiaries of NEE, including FPL, could be required to post collateral or settle contracts according to contractual terms which generally allow netting of contracts in offsetting positions. Certain derivative contracts contain multiple types of credit-related triggers. To the extent these contracts contain a credit ratings downgrade trigger, the maximum exposure is included in the following credit ratings collateral posting requirements. If FPL's and NEECH's credit ratings were downgraded to BBB/Baa2 (a three-level downgrade for FPL and a one level downgrade for NEECH from the current lowest applicable rating), applicable NEE subsidiaries would be required to post collateral such that the total posted collateral would be approximately $ million ( at FPL) at June 30, 2024 and $ million ( at FPL) at December 31, 2023. If FPL's and NEECH's credit ratings were downgraded to below investment grade, applicable NEE subsidiaries would be required to post additional collateral such that the total posted collateral would be approximately $ billion ($ million at FPL) at June 30, 2024 and $ billion ($ million at FPL) at December 31, 2023. Some derivative contracts do not contain credit ratings downgrade triggers, but do contain provisions that require certain financial measures be maintained and/or have credit-related cross-default triggers. In the event these provisions were triggered,

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

billion ($ million at FPL) at June 30, 2024 and $ billion ($ million at FPL) at December 31, 2023.

Collateral related to derivatives, including amounts posted for margin, current exposures and future performance with exchanges and independent system operators, may be posted in the form of cash or credit support in the normal course of business. At June 30, 2024 and December 31, 2023, applicable NEE subsidiaries have posted approximately $ million ( at FPL) and $ million ( at FPL), respectively, in cash, and $ million ( at FPL) and $ million ( at FPL), respectively, in the form of letters of credit and surety bonds, each of which could be applied toward the collateral requirements described above. FPL and NEECH have capacity under their credit facilities generally in excess of the collateral requirements described above that would be available to support, among other things, derivative activities. Under the terms of the credit facilities, maintenance of a specific credit rating is not a condition to drawing on these credit facilities, although there are other conditions to drawing on these credit facilities.

Additionally, some contracts contain certain adequate assurance provisions whereby a counterparty may demand additional collateral based on subjective events and/or conditions. Due to the subjective nature of these provisions, NEE and FPL are unable to determine an exact value for these items and they are not included in any of the quantitative disclosures above.

million and $ million at June 30, 2024 and December 31, 2023, respectively, and are included in noncurrent other assets on NEE's condensed consolidated balance sheets. Adjustments to carrying values are recorded as a result of observable price changes in transactions for identical or similar investments of the same issuer.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $

FPL – equity securities

$ $ $ $

Special use funds:(b)

NEE: Equity securities$ $

(c)

$ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Asset-backed securities$ $ $ $ Other debt securities$ $ $ $ FPL: Equity securities$ $

(c)

$ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Asset-backed securities$ $ $ $ Other debt securities$ $ $ $

Other investments:(d)

NEE: Equity securities$ $ $ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Other debt securities$ $ $ $ FPL:Equity securities$ $ $ $
———————————————

(a)Includes restricted cash equivalents of approximately $ million ($ 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $

FPL – equity securities

$ $ $ $

Special use funds:(b)

NEE: Equity securities$ $

(c)

$ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Asset-backed securities$ $ $ $ Other debt securities$ $ $ $ FPL: Equity securities$ $

(c)

$ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Asset-backed securities$ $ $ $ Other debt securities$ $ $ $

Other investments:(d)

NEE: Equity securities$ $ $ $ U.S. Government and municipal bonds$ $ $ $ Corporate debt securities$ $ $ $ Other debt securities$ $ $ $ FPL:Equity securities$ $ $ $

———————————————

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

(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.

Contingent Consideration – NEER had approximately $ million and $ million of contingent consideration liabilities related to acquisitions included in noncurrent other liabilities on NEE's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively. Significant inputs and assumptions used in the fair value measurement of the contingent consideration, some of which are Level 3 and require judgment, include the projected timing and amount of future cash flows, estimated probability of completing future development projects as well as discount rates.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $

Other receivables, net of allowances(b)

$ $ $ $ Long-term debt, including current portion$ $

(c)

FPL:

Special use funds(a)

$ $ $ $ Long-term debt, including current portion$ $

(c)

$ $

(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 $ million and $ million is included in current other assets and $ million and $ million is included in noncurrent other assets on NEE's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively (primarily Level 3).

(c)At June 30, 2024 and December 31, 2023, substantially all is Level 2 for NEE and FPL.

Special Use Funds and Other Investments Carried at Fair Value – The special use funds noted above and those carried at fair value (see Recurring Non-Derivative Fair Value Measurements above) consist primarily of NEE's nuclear decommissioning fund assets of approximately $ million ($ million for FPL) and $ million ($ million for FPL) at June 30, 2024 and December 31, 2023, respectively. The investments held in the special use funds and other investments consist of equity and available for sale debt securities which are primarily carried at estimated fair value. The amortized cost of debt securities is approximately $ million ($ million for FPL) and $ million ($ million for FPL) at June 30, 2024 and December 31, 2023, respectively. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at June 30, 2024 of approximately at NEE and at FPL. Other investments primarily consist of debt securities with a weighted-average maturity at June 30, 2024 of approximately . The cost of securities sold is determined using the specific identification method.

For FPL's special use funds, changes in fair value of debt and equity securities, including any estimated credit losses of debt securities, result in a corresponding adjustment to the related regulatory asset or liability accounts, consistent with regulatory treatment. For NEE's non-rate regulated operations, changes in fair value of debt securities result in a corresponding adjustment to OCI, except for estimated credit losses and unrealized losses on debt securities intended or required to be sold prior to recovery of the amortized cost basis, which are recognized in other – net in NEE's condensed consolidated statements of income. Changes in fair value of equity securities are primarily recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE’s condensed consolidated statements of income.

$ $ $ $ $ $ $

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $ $ $ $ $ Realized losses$ $ $ $ $ $ $ $ Proceeds from sale or maturity of securities$ $ $ $ $ $ $ $

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

June 30, 2024

December 31, 2023

June 30, 2024

December 31, 2023

(millions)

Unrealized gains

Unrealized losses(a)

Fair value

———————————————

(a) Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at June 30, 2024 and December 31, 2023 were not material to NEE or FPL.

Regulations issued by the FERC and the NRC provide general risk management guidelines to protect nuclear decommissioning funds and to allow such funds to earn a reasonable return. The FERC regulations prohibit, among other investments, investments in any securities of NEE or its subsidiaries, affiliates or associates, excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants are included in the NRC operating licenses for those facilities or in NRC regulations applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for Seabrook, decommissioning fund contributions and withdrawals are also regulated by the New Hampshire Nuclear Decommissioning Financing Committee pursuant to New Hampshire law.

The nuclear decommissioning reserve funds are managed by investment managers who must comply with the guidelines of NEE and FPL and the rules of the applicable regulatory authorities. The funds' assets are invested giving consideration to taxes, liquidity, risk, diversification and other prudent investment objectives.

Nonrecurring Fair Value Measurements – NEE tests its equity method investments for impairment whenever events or changes in circumstances indicate that the fair value of the investment is less than the carrying value. Indicators of impairment may include, among other things, an observable market price below NEE’s carrying value. Investments that are OTTI are written down to their estimated fair value on the reporting date and an impairment loss is recognized.

NextEra Energy Resources owns a noncontrolling interest in NEP, primarily through its limited partner interest in NEP OpCo, and accounts for this ownership interest as an equity method investment. During the latter part of the second quarter, NextEra Energy Resources’ evaluated its investment in NEP for impairment when the trading price of NEP's common units fell below NEE’s carrying value per unit of $. NEE evaluated whether NextEra Energy Resources' investment in NEP was OTTI and determined the impairment of approximately $ million ($ million after tax) was not OTTI at June 30, 2024. In making this conclusion, NEE's analysis considered, among other things, the extent to which the market value is less than its carrying value, the short duration of the impairment, the condition and trend of the economic cycle, analyst valuation reports, performance and trading yields of NEP and comparable public companies and trends in the general market. Should NEE determine, based on future analysis, that the impairment is other-than-temporary, an impairment loss would be recorded in equity in earnings of equity method investees in NEE’s consolidated statements of income, which could impact future results.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

% % % % % % % %Increases (reductions) resulting from:

State income taxes – net of federal income tax benefit

Taxes attributable to noncontrolling interests

Renewable energy tax credits

()()()()()()()()Amortization of deferred regulatory credit()()()()()()()()

Other – net

()()()()()()Effective income tax rate()% % % % % % % %

NEE recognizes PTCs as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year. NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the expected value of most wind and some solar projects and a fundamental component of such wind and solar projects' results of operations. PTCs, as well as ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income or loss. The amount of PTCs recognized can be significantly affected by wind and solar generation and by the roll off of PTCs after of production absent a repowering of the wind and solar projects.

biogas projects, of which is an operating renewable natural gas facility and the others of which are primarily operating landfill gas-to-electric facilities. The purchase price included approximately $ billion in cash consideration and the assumption of approximately $ million of debt, excluding post-closing adjustments.

Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair value. NEE acquired identifiable assets of approximately $ billion, primarily relating to property, plant and equipment and intangible assets associated with biogas rights agreements and above-market purchased power agreements, and assumed liabilities of approximately $ billion and noncontrolling interests of approximately $ billion. The excess of the purchase price over the fair value of assets acquired and liabilities assumed resulted in approximately $ billion of goodwill which has been recognized on NEE's condensed consolidated balance sheets, of which approximately $ billion is expected to be deductible for tax purposes. Goodwill associated with the RNG acquisition is reflected within NEER and, for impairment testing, is included in the clean energy assets reporting unit. The goodwill arising from the transaction represents expected benefits of synergies and expansion opportunities for NEE's clean energy businesses.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

million and $ million, respectively, and are included in accounts payable. Fee income related to the CSCS agreement and the service agreements totaled approximately $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and $ million and $ million for the six months ended June 30, 2024 and 2023, respectively, and is included in operating revenues in NEE's condensed consolidated statements of income. Amounts due from NEP of approximately $ million and $ million are included in other receivables and $ million and $ million are included in noncurrent other assets at June 30, 2024 and December 31, 2023, respectively. NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $ billion at June 30, 2024 primarily related to obligations on behalf of NEP's subsidiaries with maturity dates ranging from 2024 to 2059, including certain project performance obligations and obligations under financing and interconnection agreements. Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries are the guarantor are recorded on NEE’s condensed consolidated balance sheets at fair value. At June 30, 2024, approximately $ million related to the fair value of the credit support provided under the CSCS agreement is recorded as noncurrent other liabilities on NEE's condensed consolidated balance sheet.

During 2024 and 2023, certain services, primarily engineering, construction, transportation, storage and maintenance services, were provided to subsidiaries of NEE by related parties that NEE accounts for under the equity method of accounting. Charges for these services amounted to approximately $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and $ million and $ million for the six months ended June 30, 2024 and 2023, respectively.

See also Note 11 – Disposal of Businesses for a sale to NEP in 2023.

indirect subsidiaries of NextEra Energy Resources have an ownership interest ranging from approximately % to % in entities which own and operate solar generation facilities with generating capacity of approximately MW. Each of the subsidiaries is considered a VIE since the non-managing members have no substantive rights over the managing members, and is consolidated by NextEra Energy Resources. These entities sell their electric output to third parties under power sales contracts with expiration dates ranging from 2035 through 2052. These entities have third-party debt which is secured by liens against the assets of the entities. The debt holders have no recourse to the general credit of NextEra Energy Resources for the repayment of debt. The assets and liabilities of these VIEs were approximately $ million and $ million, respectively, at June 30, 2024, and $ million and $ million, respectively, at December 31, 2023. At June 30, 2024 and December 31, 2023, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and long-term debt.

NEE consolidates a NEET VIE which owns and operates an approximately -mile electric transmission line. A NEET subsidiary is the primary beneficiary and controls the most significant activities of the VIE. NEET is entitled to receive % of the profits and losses of the entity. The assets and liabilities of the VIE totaled approximately $ million and $ million, respectively, at June 30, 2024, and $ million and $ million, respectively, at December 31, 2023. At June 30, 2024 and December 31, 2023, the assets and liabilities of this VIE consisted primarily of property, plant and equipment and long-term debt.

NextEra Energy Resources consolidates a VIE which has a % direct ownership interest in wind and solar generation facilities which have the capability of producing approximately MW and MW, respectively. These entities sell their electric output under power sales contracts to third parties with expiration dates ranging from 2025 through 2040. These entities are also considered a VIE because the holders of differential membership interests in these entities do not have substantive rights over the significant activities of these entities. The assets and liabilities of the VIE were approximately $ million and $ million, respectively, at June 30, 2024, and $ million and $ million, respectively, at December 31, 2023. At June 30, 2024 and December 31, 2023, the assets of this VIE consisted primarily of property, plant and equipment.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

VIEs that primarily relate to certain subsidiaries which have sold differential membership interests in entities which own and operate wind generation, solar generation and battery storage facilities with the generating/storage capacity of approximately MW, MW and MW, respectively. These entities sell, or will sell, their electric output either under power sales contracts to third parties with expiration dates ranging from 2024 through 2053 or in the spot market. These entities are considered VIEs because the holders of differential membership interests do not have substantive rights over the significant activities of these entities. NextEra Energy Resources has financing obligations with respect to these entities, including third-party debt which is secured by liens against the generation facilities and the other assets of these entities or by pledges of NextEra Energy Resources' ownership interest in these entities. The debt holders have no recourse to the general credit of NEER for the repayment of debt. The assets and liabilities of these VIEs totaled approximately $ million and $ million, respectively, at June 30, 2024. There were of these consolidated VIEs at December 31, 2023 and the assets and liabilities of those VIEs at such date totaled approximately $ million and $ million, respectively. At June 30, 2024 and December 31, 2023, the assets of these VIEs consisted primarily of property, plant and equipment, and as of December 31, 2023, the liabilities of these VIEs consisted primarily of accounts payable.

Other – At June 30, 2024 and December 31, 2023, several NEE subsidiaries had investments totaling approximately $ million ($ million at FPL) and $ million ($ million at FPL), respectively, which are included in special use funds and noncurrent other assets on NEE's condensed consolidated balance sheets and in special use funds on FPL's condensed consolidated balance sheets. These investments represented primarily commingled funds and asset-backed securities. NEE subsidiaries, including FPL, are not the primary beneficiaries and therefore do not consolidate any of these entities because they do not control any of the ongoing activities of these entities, were not involved in the initial design of these entities and do not have a controlling financial interest in these entities.

Certain subsidiaries of NEE have noncontrolling interests in entities accounted for under the equity method, including NEE's noncontrolling interest in NEP OpCo. These entities are limited partnerships or similar entity structures in which the limited partners or non-managing members do not have substantive rights over the significant activities of these entities, and therefore are considered VIEs. NEE is not the primary beneficiary because it does not have a controlling financial interest in these entities, and therefore does not consolidate any of these entities. NEE’s investment in these entities totaled approximately $ million and $ million at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, subsidiaries of NEE had guarantees related to certain obligations of of these entities, as well as commitments to invest an additional approximately $ million in several of these entities. See further discussion of such guarantees and commitments in Note 12 – Commitments and – Contracts, respectively.

$ $ $ $ $ $ $ Interest cost Expected return on plan assets()() ()()

Special termination benefit(a)

Net periodic cost (income) at NEE$()$()$ $ $()$()$ $ Net periodic cost (income) allocated to FPL$()$()$ $ $()$()$ $

Pollution control, solid waste disposal and industrial development revenue bonds(a)

$ 2054 Junior subordinated debentures$ %– %

(c)

2054

Exchangeable senior notes(d)

$ %2027 Revolving credit facilities$

(b)

2025

———————————————

(a)Includes tax exempt bonds that permit individual bondholders to tender the bonds for purchase at any time prior to maturity. In the event these tax exempt bonds are tendered for purchase, they would be remarketed by a designated remarketing agent in accordance with the related indenture. If the remarketing is unsuccessful, FPL would be required to purchase these tax exempt bonds. FPL's syndicated revolving credit facilities are available to support the purchase of tax exempt bonds. Variable interest rate is established at various intervals by the remarketing agent.

(b)Variable rate is based on an underlying index plus a specified margin.

(c)Debentures issued in March 2024 and June 2024 will bear interest at the stated rate until September 1, 2029 and June 15, 2034, respectively, and thereafter will bear interest based on an underlying index plus a specified margin, reset every five years.

(d)See additional discussion of the exchangeable senior notes below.

(e)A foreign currency swap has been entered into with respect to this debt issuance. See Note 2.

In March 2024, NEECH issued $ billion principal amount of its exchangeable senior notes due 2027 (the notes). A holder may exchange all or a portion of its notes at any time prior to the maturity date in accordance with the related indenture. Upon exchange, NEECH will pay cash up to the aggregate principal amount of the notes being exchanged and has the right, at its sole discretion, to pay or deliver cash, shares of NEE common stock or a combination of both, in respect of the remainder, if any, of NEECH's exchange obligation in excess of the aggregate principal amount of the notes being exchanged. At June 30, 2024, the exchange rate, which is subject to certain adjustments as set forth in the indenture, is 14.6927 shares of NEE common stock per $1,000 in principal amount of notes, which is equivalent to an exchange price of approximately $ per share of NEE common stock.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

million of the net proceeds from the sale of the notes to enter into capped call transactions. Under the capped call transactions, NEECH purchased capped call options with an initial strike price of $ and an initial cap price of $ in each case per share of NEE common stock and subject to adjustment in certain circumstances. The capped call transactions may be settled with cash or, at NEE's election, with shares of NEE common stock. Any capped call settlement value is expected to offset the value to be delivered upon exchange of the notes as a result of share price improvement up to the cap price.

In June 2024, NEE sold $ billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $ and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a % undivided beneficial ownership interest in a Series N Debenture due June 1, 2029, issued in the principal amount of $1,000 by NEECH. Each stock purchase contract requires the holder to purchase by no later than June 1, 2027 (the final settlement date) for a price of $ in cash, a number of shares of NEE common stock (subject to antidilution adjustments), based on a price per share range described in the following sentence. If purchased on the final settlement date, as of June 30, 2024, the number of shares issued per equity unit would (subject to antidilution adjustments) range from shares if the applicable market value of a share of NEE common stock is less than or equal to $ (the reference price) to shares if the applicable market value of a share is equal to or greater than $ (the threshold appreciation price), with the applicable market value to be determined using the average closing prices of NEE common stock over a -day trading period ending on May 26, 2027. Total annual distributions on the equity units are at the rate of %, consisting of interest on the debentures (% per year) and payments under the stock purchase contracts (% per year). The interest rate on the debentures is expected to be reset on or after December 1, 2026. A holder of an equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder's obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

10.

$ $ $

———————————————

(a)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.

Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains on Cash Flow Hedges

Net Unrealized Gains (Losses) on Available for Sale Securities

Defined Benefit Pension and Other Benefits Plans

Net Unrealized Gains (Losses) on Foreign Currency Translation

Other Comprehensive Income Related to Equity Method Investees

Total

(millions)

Three Months Ended June 30, 2023

Balances, March 31, 2023

()

Other comprehensive income (loss) before reclassifications

()

Amounts reclassified from AOCI

(a)

Net other comprehensive income (loss)

()

Less other comprehensive income attributable

to noncontrolling interests

()

Balances, June 30, 2023

()

Attributable to noncontrolling interests

()

———————————————

(a)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$()$()$()$ $()

Other comprehensive income (loss) before reclassifications

() Amounts reclassified from AOCI

(a)

(b)

Net other comprehensive income Less other comprehensive income attributable to noncontrolling interests () ()

Balances, June 30, 2023

$ $()$()$()$ $()Attributable to noncontrolling interests$ $ $ $()$ $()

———————————————

(a)Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 – Income Statement Impact of Derivative Instruments.

(b)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.

11.

million over effective May 2024.

million ($ million for FPL) and $ million ($ million for FPL), respectively, of restricted cash, which is included in current other assets on NEE's and FPL's condensed consolidated balance sheets. Restricted cash is primarily related to debt service payments and margin cash collateral requirements at NEER and bond proceeds held for construction at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $ million is netted against derivative assets and $ million is netted against derivative liabilities at June 30, 2024 and $ million is netted against derivative assets and $ million is netted against derivative liabilities at December 31, 2023. See Note 2.

MW, which is expected to result in the deconsolidation of the portfolio. NEER expects to close the sale by the end of the third quarter of 2024, subject to the satisfaction of customary closing conditions and the receipt of regulatory approvals, for cash proceeds of approximately $ million, subject to closing adjustments.

In June 2023, subsidiaries of NextEra Energy Resources sold to a NEP subsidiary their % ownership interests in wind generation facilities and solar generation facilities located in geographically diverse locations throughout the U.S. with a total generating capacity of MW for cash proceeds of approximately $ million, plus working capital of $ million. A NextEra Energy Resources affiliate continues to operate the facilities included in the sale.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $ Nuclear fuel Construction work in progress Property, plant and equipment, gross Accumulated depreciation and amortization()()()()Property, plant and equipment – net$ $ $ $

During the three months ended June 30, 2024 and 2023, FPL recorded AFUDC of approximately $ million and $ million, respectively, including AFUDC – equity of approximately $ million and $ million, respectively. During the six months ended June 30, 2024 and 2023, FPL recorded AFUDC of approximately $ million and $ million, respectively, including AFUDC – equity of $ million and $ million, respectively. During the three months ended June 30, 2024 and 2023, NEER capitalized interest on construction projects of approximately $ million and $ million, respectively. During the six months ended June 30, 2024 and 2023, NEER capitalized interest on construction projects of approximately $ million and $ million, respectively.

billion and $ billion, respectively, substantially all of which is included in accounts payable on NEE's condensed consolidated balance sheets.

million are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE's condensed consolidated statements of cash flows.

million and $ million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relates to differential membership interests. For the three months ended June 30, 2024 and 2023, NEE recorded earnings of approximately $ million and $ million, respectively, and for the six months ended June 30, 2024 and 2023 approximately $ million and $ million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests on NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

12.

$ $ $ $ $ Existing

Transmission and distribution(c)

Nuclear fuel General and other Total$ $ $ $ $ $

NEER:(d)

Wind(e)

$ $ $ $ $ $

Solar(f)

Other clean energy(g)

Nuclear, including nuclear fuel

Rate-regulated transmission(h)

Other

Total$ $ $ $ $ $ ———————————————

(a)Includes AFUDC of approximately $ million, $ million, $ million, $ million and $ million for the remainder of 2024 through 2028, respectively.

(b)Includes land, generation structures, transmission interconnection and integration and licensing.

(c)Includes AFUDC of approximately $ million, $ million, $ million, $ million and $ million for the remainder of 2024 through 2028, respectively.

(d)Represents capital expenditures for which applicable internal approvals and also, if required, regulatory approvals have been received.

(e)Consists of capital expenditures for new wind projects and repowering of existing wind projects totaling approximately MW, and related transmission.

(f)Includes capital expenditures for new solar projects (including solar plus battery storage projects) totaling approximately MW and related transmission.

(g)Includes capital expenditures primarily for battery storage projects and renewable fuels projects.

(h)Includes AFUDC of approximately $ million, $ million, $ million, $ million and $ million for the remainder of 2024 through 2028, respectively.

The above estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

In addition to guarantees noted in Note 6 with regards to NEP, NEECH has guaranteed or provided indemnifications or letters of credit related to third parties, including certain obligations of investments in joint ventures accounted for under the equity method, totaling approximately $ million at June 30, 2024. These obligations primarily related to guaranteeing the residual value of certain financing leases. Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries are the guarantor are recorded at fair value and are included in noncurrent other liabilities on NEE’s condensed consolidated balance sheets. Management believes that the exposure associated with these guarantees is not material.

Contracts – In addition to the commitments made in connection with the estimated capital expenditures included in the table in Commitments above, FPL has firm commitments under long-term contracts primarily for the transportation of natural gas with expiration dates through 2042.

At June 30, 2024, NEER has entered into contracts primarily for the purchase of wind turbines, wind towers, solar modules and batteries and related construction and development activities, as well as for the supply of uranium, and the conversion, enrichment and fabrication of nuclear fuel with expiration dates through 2033. Approximately $ billion of related commitments are included in the estimated capital expenditures table in Commitments above. In addition, NEER has contracts primarily for the transportation and storage of natural gas with expiration dates through 2044.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

$ $ $ $ $

NEER(b)(c)(d)

$ $ $ $ $ $ ———————————————

(a)Includes approximately $ million, $ million, $ million, $ million, $ million and $ million for the remainder of 2024 through 2028 and thereafter, respectively, of firm commitments related to the natural gas transportation agreements with Sabal Trail and Florida Southeast Connection. The charges associated with these agreements are recoverable through the fuel clause. For the three and six months ended June 30, 2024, the charges associated with these agreements totaled approximately $ million and $ million, respectively, of which $ million and $ million, respectively, were eliminated in consolidation at NEE. For the three and six months ended June 30, 2023, the charges associated with these agreements totaled approximately $ million and $ million, respectively, of which $ million and $ million, respectively, were eliminated in consolidation at NEE.

(b)Includes a natural gas transportation agreement (approximately $ million per year) with Mountain Valley Pipeline, a joint venture in which NEER has a % equity investment. The natural gas pipeline completed construction in June 2024 and the transportation agreement commitments commenced in July 2024.

(c)Includes approximately $ million of commitments to invest in technology and other investments through 2031. See Note 7 – Other.

(d)Includes approximately $ million and $ million for the remainder of 2024 and 2025, respectively, of joint obligations of NEECH and NEER.

Insurance – Liability for accidents at nuclear power plants is governed by the Price-Anderson Act, which limits the liability of nuclear reactor owners to the amount of insurance available from both private sources and an industry retrospective payment plan. In accordance with this Act, NEE maintains $ million of private liability insurance per site, which is the maximum obtainable, except at Duane Arnold which obtained an exemption from the NRC and maintains a $ million private liability insurance limit. Each site, except Duane Arnold, participates in a secondary financial protection system, which provides up to $ billion of liability insurance coverage per incident at any nuclear reactor in the U.S. Under the secondary financial protection system, NEE is subject to retrospective assessments of up to $ million ($ million for FPL), plus any applicable taxes, per incident at any nuclear reactor in the U.S., payable at a rate not to exceed $ million ($ million for FPL) per incident per year. NextEra Energy Resources and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook and St. Lucie Unit No. 2, which approximates $ million and $ million, plus any applicable taxes, per incident, respectively.

NEE participates in a nuclear insurance mutual company that provides $ billion of limited insurance coverage per occurrence per site for property damage, decontamination and premature decommissioning risks at its nuclear plants and a sublimit of $ billion for non-nuclear perils, except for Duane Arnold which has a limit of $ million for property damage, decontamination risks and non-nuclear perils. NEE participates in co-insurance of % of the first $ million of losses per site per occurrence, except at Duane Arnold. The proceeds from such insurance, however, must first be used for reactor stabilization and site decontamination before they can be used for plant repair. NEE also participates in an insurance program that provides limited coverage for replacement power costs if a nuclear plant is out of service for an extended period of time because of an accident. In the event of an accident at one of NEE's or another participating insured's nuclear plants, NEE could be assessed up to $ million ($ million for FPL), plus any applicable taxes, in retrospective premiums in a policy year. NextEra Energy Resources and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook, Duane Arnold and St. Lucie Unit No. 2, which approximates $ million, $ million and $ million, plus any applicable taxes, respectively.

Due to the high cost and limited coverage available from third-party insurers, NEE does not have property insurance coverage for a substantial portion of either its transmission and distribution property or natural gas pipeline assets. If FPL's storm restoration costs exceed the storm reserve, such storm restoration costs may be recovered, subject to prudence review by the FPSC, through surcharges approved by the FPSC or through securitization provisions pursuant to Florida law.

In the event of a loss, the amount of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered from customers in the case of FPL, would be borne by NEE and FPL and could have a material adverse effect on NEE's and FPL's financial condition, results of operations and liquidity.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

13.

reportable segments, FPL, a rate-regulated utility business, and NEER, which is comprised of competitive energy and rate-regulated transmission businesses. Corporate and Other represents other business activities, includes eliminating entries, and may include the net effect of rounding.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

(unaudited)

$ $ $ $ $ $ $

Operating expenses – net

$ $ $ $ $ $

$ Gains (losses) on disposal of businesses/assets – net$ $ $()$ $ $()$ $ Net loss attributable to noncontrolling interests$ $ $ $ $ $ $ $

Net income (loss) attributable to NEE

(b)

$()$ $

(b)

$ $


	Six Months Ended June 30,
	2024							2023
	FPL		NEER(a)		Corporate and Other		NEE Consoli- dated	FPL		NEER(a)			Corporate and Other		NEE Consoli- dated
							(millions)
Operating revenues	$		$		$		$	$		$			$		$
Operating expenses – net	$		$		$		$	$		$			$		$
Gains (losses) on disposal of businesses/assets – net	$		$		$	()	$	$		$	()		$		$
Net loss attributable to noncontrolling interests	$		$		$		$	$		$			$		$
Net income (loss) attributable to NEE	$	(b)	$	(b)	$	()	$	$	(b)	$		(b)	$	()	$

———————————————

(a)Interest expense allocated from NEECH to NextEra Energy Resources' subsidiaries is based on a deemed capital structure of % debt and differential membership interests sold by NextEra Energy Resources' subsidiaries. Residual NEECH corporate interest expense is included in Corporate and Other.

(b)Includes amounts that were recognized based on its tax sharing agreement with NEE. See Note 4 – Income Taxes.

June 30, 2024

December 31, 2023

FPL

NEER

Corporate
and Other

NEE
Consoli-
dated

FPL

NEER

Corporate
and Other

NEE
Consoli-
dated

(millions)

Total assets

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW

NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves approximately 5.9 million customer accounts in Florida and is one of the largest electric utilities in the U.S., and NEER, which together with affiliated entities is the world's largest generator of renewable energy from the wind and sun based on 2023 MWh produced on a net generation basis, as well as a world leader in battery storage. The table below presents net income (loss) attributable to NEE and earnings (loss) per share attributable to NEE, assuming dilution, by reportable segment, FPL and NEER. Corporate and Other is primarily comprised of the operating results of other business activities, as well as other income and expense items, including interest expense, and eliminating entries, and may include the net effect of rounding. See Note 13 for additional segment information. The following discussions should be read in conjunction with the Notes contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2023 Form 10-K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussions, all comparisons are with the corresponding items in the prior year periods.


	Net Income (Loss) Attributable to NEE				Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution				Net Income (Loss) Attributable to NEE				Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution
	Three Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023		2024		2023		2024		2023
	(millions)								(millions)
FPL	$	1,232	$	1,152	$	0.60	$	0.57	$	2,404	$	2,223	$	1.17	$	1.10
NEER(a)	552		1,462		0.27		0.72		1,518		2,902		0.74		1.44
Corporate and Other	(162)		181		(0.08)		0.09		(32)		(244)		(0.02)		(0.12)
NEE	$	1,622	$	2,795	$	0.79	$	1.38	$	3,890	$	4,881	$	1.89	$	2.42

———————————————

(a) NEER’s results reflect an allocation of interest expense from NEECH to NextEra Energy Resources' subsidiaries based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.

Adjusted Earnings

NEE prepares its financial statements under GAAP. However, management uses earnings adjusted for certain items (adjusted earnings), a non-GAAP financial measure, internally for financial planning, analysis of performance, reporting of results to the Board of Directors and as an input in determining performance-based compensation under NEE’s employee incentive compensation plans. NEE also uses adjusted earnings when communicating its financial results and earnings outlook to analysts and investors. NEE’s management believes that adjusted earnings provide a more meaningful representation of NEE's fundamental earnings power. Although these amounts are properly reflected in the determination of net income under GAAP, management believes that the amount and/or nature of such items make period to period comparisons of operations difficult and potentially confusing. Adjusted earnings do not represent a substitute for net income, as prepared under GAAP.

The following table provides details of the after-tax adjustments to net income considered in computing NEE's adjusted earnings discussed above.


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(millions)
Net gains (losses) associated with non-qualifying hedge activity(a)	$	(254)	$	1,079	$	77	$	1,461
Differential membership interests-related – NEER	$	—	$	(11)	$	(5)	$	(27)
NEP investment gains, net – NEER	$	(24)	$	(31)	$	(47)	$	(29)

Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds and OTTI, net – NEER	$	(68)	$	(7)	$	24	$	60

Impairment charges related to investment in Mountain Valley Pipeline(c)	12		39
Change in net income less net loss attributable to noncontrolling interests	$	(910)	$	(1,384)

———————————————

(a) Reflects after-tax project contributions, including the net effect of deferred income taxes and other benefits associated with renewable energy tax credits for wind, solar and storage projects, as applicable, but excludes allocation of interest expense and corporate general and administrative expenses except for an allocated credit support charge related to guarantees issued to conduct business activities. Results from projects, pipelines and rate-regulated transmission facilities and transmission lines are included in new investments during the first twelve months of operation or ownership. Project results, including repowered wind projects, are included in existing clean energy, pipeline results are included in gas infrastructure and rate-regulated transmission facilities and transmission lines are included in NEET beginning with the thirteenth month of operation or ownership.

(b) Excludes allocation of interest expense and corporate general and administrative expenses except for an allocated credit support charge related to guarantees issued to conduct business activities.

New Investments

Results from new investments for the three and six months ended June 30, 2024 increased primarily due to higher earnings related to new wind and solar generation and battery storage facilities that entered service during or after the three and six months ended June 30, 2023.

Existing Clean Energy

Results from existing clean energy for the three months ended June 30, 2024 increased primarily due to higher wind resource. Additionally, for both the three and six months ended June 30, 2024, results increased due to the absence of a 2023 refueling outage at the Seabrook nuclear facility.

Gas Infrastructure

Results from gas infrastructure for the three and six months ended June 30, 2024 decreased primarily due to higher depletion caused by lower expected future production and higher O&M expenses.

Other Factors

Supplemental to the primary drivers of the changes in NEER's results discussed above, the discussion below describes changes in certain line items set forth in NEE's condensed consolidated statements of income as they relate to NEER.

Operating Revenues

Operating revenues for the three months ended June 30, 2024 decreased $911 million primarily due to:

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $284 million of losses for the three months ended June 30, 2024 compared to $857 million of gains for the comparable period in 2023), and

•other net decreases in revenues of $32 million primarily relating to the customer supply and gas infrastructure businesses,

partly offset by,

•revenues from new investments of $157 million, and

•higher revenues from existing clean energy assets of $105 million primarily due to the absence of a 2023 refueling outage at the Seabrook nuclear facility and higher wind resource compared to the prior year period.

Operating revenues for the six months ended June 30, 2024 decreased $1,838 million primarily due to:

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $217 million of losses for the six months ended June 30, 2024 compared to $1,953 million of gains for the comparable period in 2023), and

•other net decreases in revenues of $106 million,

partly offset by,

•revenues from new investments of $262 million,

•increases in revenues of $89 million from the customer supply and gas infrastructure businesses, and

•higher revenues from existing clean energy assets of $87 million primarily due the absence of a 2023 refueling outage at the Seabrook nuclear facility.

Operating Expenses – net

Operating expenses – net for the three months ended June 30, 2024 increased $351 million primarily due to increases of $213 million in depreciation and amortization, $76 million in O&M expenses and $51 million in fuel, purchased power and interchange expenses. Operating expenses – net for the six months ended June 30, 2024 increased $583 million primarily due to increases of $325 million in depreciation and amortization, $157 million in O&M expenses and $70 million in fuel, purchased power and interchange expenses. The increases for both periods were primarily associated with growth across the NEER businesses as well as higher depletion and higher O&M expenses at the gas infrastructure business.

Interest Expense

NEER’s interest expense for the three months ended June 30, 2024 increased $192 million reflecting approximately $88 million of unfavorable impacts related to changes in the fair value of interest rate derivative instruments as well as higher average interest rates and higher average debt balances.

Change in Unrealized Gains (Losses) on Equity Securities Held in NEER's Nuclear Decommissioning Funds – net

For the three months ended June 30, 2024, changes in the fair value of equity securities in NEER's nuclear decommissioning funds related to unfavorable market conditions in 2024 compared to the prior year period.

Income Taxes

PTCs from wind and solar projects and ITCs from solar, battery storage and certain wind projects are included in NEER’s earnings. PTCs are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes. NEER's effective income tax rate is primarily based on the composition of pretax income (loss) in the periods presented, which for the three and six months ended June 30, 2024 was primarily impacted by unfavorable non-qualifying hedge activity compared to the prior year periods. The effective tax rate is also impacted by the amount of renewable energy tax credits in the periods presented. During the three and six months ended June 30, 2024, renewable energy tax credits increased by approximately $160 million and $263 million, respectively. See Note 4.

RNG Acquisition

On March 21, 2023, a wholly owned subsidiary of NextEra Energy Resources acquired a portfolio of renewable energy projects as well as the related service provider. See Note 5 – RNG Acquisition.

Corporate and Other: Results of Operations

Corporate and Other is primarily comprised of the operating results of other business activities, as well as corporate interest income and expenses. Corporate and Other allocates a portion of NEECH's corporate interest expense to NextEra Energy Resources. Interest expense is allocated based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.

Corporate and Other's results decreased $343 million during the three months ended June 30, 2024 primarily due to unfavorable after-tax impacts of approximately $370 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments. Corporate and Other's results increased $212 million during the six months ended June 30, 2024 primarily due to more favorable after-tax impacts of approximately $187 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments.

LIQUIDITY AND CAPITAL RESOURCES

NEE and its subsidiaries require funds to support and grow their businesses. These funds are used for, among other things, working capital, capital expenditures (see Note 12 – Commitments), investments in or acquisitions of assets and businesses (see Note 5), payment of maturing debt and related derivative obligations (see Note 9 and Note 2) and, from time to time, redemption or repurchase of outstanding debt or equity securities. It is anticipated that these requirements will be satisfied through a combination of cash flows from operations, short- and long-term borrowings, the issuance of short- and long-term debt (see Note 9) and, from time to time, equity securities, proceeds from differential membership investors, the sale of renewable energy tax credits (see Note 11 – Income Taxes) and sales of assets to NEP or third parties (see Note 11 – Disposal of Businesses), consistent with NEE’s and FPL’s objective of maintaining, on a long-term basis, a capital structure that will support a strong investment grade credit rating. NEE, FPL and NEECH rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows. The inability of NEE, FPL and NEECH to maintain their current credit ratings could affect their ability to raise short- and long-term capital, their cost of capital and the execution of their respective financing strategies, and could require the posting of additional collateral under certain agreements.

Cash Flows

NEE's sources and uses of cash for the six months ended June 30, 2024 and 2023 were as follows:


	Six Months Ended June 30,
	2024		2023
	(millions)
Sources of cash:
Cash flows from operating activities	$	7,010	$	4,759
Issuances of long-term debt, including premiums and discounts	14,111		9,978
Sale of independent power and other investments of NEER	951		1,001
Issuances of common stock/equity units – net	—		2,503
Net increase in commercial paper and other short-term debt	1,931		2,264
Other sources – net	—		132
Total sources of cash	24,003		20,637
Uses of cash:
Capital expenditures, independent power and other investments and nuclear fuel purchases	(14,634)		(13,047)
Retirements of long-term debt	(6,499)		(4,959)
Payments to related parties under the CSCS agreement – net	(830)		(255)
Issuances of common stock/equity units – net	(34)		—
Dividends on common stock	(2,115)		(1,876)
Other uses – net	(1,207)		(1,187)
Total uses of cash	(25,319)		(21,324)
Effects of currency translation on cash, cash equivalents and restricted cash	(2)		—
Net decrease in cash, cash equivalents and restricted cash	$	(1,318)	$	(687)

NEE's primary capital requirements are for expanding and enhancing FPL's electric system and generation facilities to continue to provide reliable service to meet customer electricity demands and for funding NEER's investments in independent power and other projects. See Note 12 – Commitments for estimated capital expenditures for the remainder of 2024 through 2028.

The following table provides a summary of capital investments for the six months ended June 30, 2024 and 2023.


	Six Months Ended June 30,
	2024		2023
	(millions)
FPL:
Generation:
New	$	1,324	$	878
Existing	554		847
Transmission and distribution	2,258		2,503
Nuclear fuel	148		68
General and other	226		299
Other, primarily change in accrued property additions and the exclusion of AFUDC – equity	(102)		137
Total	4,408		4,732

Noncurrent derivative liabilities(2,051)

NEE's total mark-to-market energy contract net liabilities

$(335)

The sources of fair value estimates and maturity of energy contract derivative instruments at June 30, 2024 were as follows:


	Maturity
	2024		2025		2026		2027		2028		Thereafter		Total
	(millions)
Trading:
Quoted prices in active markets for identical assets	$	(346)	$	(275)	$	(4)	$	(16)	$	45	$	67	$	(529)
Significant other observable inputs	292		425		199		161		59		29		1,165
Significant unobservable inputs	246		109		39		10		8		261		673
Total	192		259		234		155		112		357		1,309
Owned Assets – Non-Qualifying:
Quoted prices in active markets for identical assets	(28)		(78)		(52)		(19)		(5)		(4)		(186)
Significant other observable inputs	(89)		(350)		(322)		(238)		(138)		(306)		(1,443)
Significant unobservable inputs	15		(45)		(43)		(48)		(10)		27		(104)
Total	(102)		(473)		(417)		(305)		(153)		(283)		(1,733)
Owned Assets – FPL Cost Recovery Clauses:
Quoted prices in active markets for identical assets	—		—		—		—		—		—		—
Significant other observable inputs	(7)		(9)		(1)		(1)		—		—		(18)
Significant unobservable inputs	20		28		8		1		—		—		57
Total	13		19		7		—		—		—		39





358


			Hedges on Owned Assets
	Trading		Non- Qualifying		FPL Cost Recovery Clauses		NEE Total
	(millions)
Six Months Ended June 30, 2023
Fair value of contracts outstanding at December 31, 2022	$	1,177	$	(3,921)	$	16	$	(2,728)
Reclassification to realized at settlement of contracts	(150)		259		(2)		107
Value of contracts acquired	—		90		—		90
Net option premium purchases (issuances)	130		6		—		136
Changes in fair value excluding reclassification to realized	108		1,811		(9)		1,910
Fair value of contracts outstanding at June 30, 2023	1,265		(1,755)		5		(485)
Net margin cash collateral paid (received)							843
Total mark-to-market energy contract net assets (liabilities) at June 30, 2023	$	1,265	$	(1,755)	$	5	$	358

With respect to commodities, NEE's Exposure Management Committee (EMC), which is comprised of certain members of senior management, and NEE's chief executive officer are responsible for the overall approval of market risk management policies and the delegation of approval and authorization levels. The EMC and NEE's chief executive officer receive periodic updates on market positions and related exposures, credit exposures and overall risk management activities.

NEE uses a value-at-risk (VaR) model to measure commodity price market risk in its trading and mark-to-market portfolios. The VaR is the estimated loss of market value based on a one-day holding period at a 95% confidence level using historical simulation methodology. The VaR figures are as follows:


	Trading(a)						Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses(b)						Total
	FPL		NEER		NEE		FPL		NEER		NEE		FPL		NEER		NEE
									(millions)
December 31, 2023	$	—	$	4	$	4	$	2	$	114	$	116	$	2	$	113	$	111
June 30, 2024	$	—	$	4	$	4	$	8	$	123	$	122	$	8	$	121	$	121
Average for the six months ended June 30, 2024	$	—	$	5	$	5	$	5	$	123	$	123	$	5	$	122	$	121

———————————————

(a) The VaR figures for the trading portfolio include positions that are marked to market. Taking into consideration offsetting unmarked non-derivative positions, such as physical inventory, the trading VaR figures were approximately $1 million and $1 million at June 30, 2024 and December 31, 2023, respectively.

(b) Non-qualifying hedges are employed to reduce the market risk exposure to physical assets or contracts which are not marked to market. The VaR figures for the non-qualifying hedges and hedges in FPL cost recovery clauses category do not represent the economic exposure to commodity price movements.

Interest Rate Risk

NEE's and FPL's financial results are exposed to risk resulting from changes in interest rates as a result of their respective outstanding and expected future issuances of debt, investments in special use funds and other investments. NEE and FPL manage their respective interest rate exposure by monitoring current interest rates, entering into interest rate contracts and using a combination of fixed rate and variable rate debt. Interest rate contracts are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by financing agreements.

The following are estimates of the fair value of NEE's and FPL's financial instruments that are exposed to interest rate risk:


	June 30, 2024				December 31, 2023
	Carrying Amount		Estimated Fair Value(a)		Carrying Amount		Estimated Fair Value(a)
	(millions)
NEE:

Special use funds	$	2,245	$	2,245	$	2,222	$	2,222
Other investments, primarily debt securities	$	1,936	$	1,936	$	1,802	$	1,802
Long-term debt, including current portion	$	75,797	$	71,380	$	68,306	$	64,103
Interest rate contracts – net unrealized losses	$	(165)	$	(165)	$	(249)	$	(249)
FPL:

Special use funds	$	1,696	$	1,696	$	1,658	$	1,658

Long-term debt, including current portion	$	26,224	$	24,206	$	25,274	$	23,430

———————————————

(a)See Notes 2 and 3.

The special use funds of NEE and FPL consist of restricted funds set aside to cover the cost of storm damage for FPL and for the decommissioning of NEE's and FPL's nuclear power plants. A portion of these funds is invested in fixed income debt securities primarily carried at estimated fair value. At FPL, changes in fair value, including any credit losses, result in a corresponding adjustment to the related regulatory asset or liability accounts based on current regulatory treatment. The changes in fair value for NEE's non-rate regulated operations result in a corresponding adjustment to OCI, except for credit losses and unrealized losses on available for sale securities intended or required to be sold prior to recovery of the amortized cost basis, which are reported in current period earnings. Because the funds set aside by FPL for storm damage could be needed at any time, the related investments are generally more liquid and, therefore, are less sensitive to changes in interest rates. The nuclear decommissioning funds, in contrast, are generally invested in longer-term securities.

At June 30, 2024, NEE had interest rate contracts with a net notional amount of approximately $22.1 billion to manage exposure to the variability of cash flows primarily associated with expected future and outstanding debt issuances at NEECH and NEER. See Note 2.

Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE's net liabilities would increase by approximately $3,160 million ($1,170 million for FPL) at June 30, 2024.

Equity Price Risk

NEE and FPL are exposed to risk resulting from changes in prices for equity securities. For example, NEE’s nuclear decommissioning reserve funds include marketable equity securities carried at their market value of approximately $5,783 million and $5,290 million ($3,925 million and $3,536 million for FPL) at June 30, 2024 and December 31, 2023, respectively. NEE's and FPL’s investment strategy for equity securities in their nuclear decommissioning reserve funds emphasizes marketable securities which are broadly diversified. At June 30, 2024, a hypothetical 10% decrease in the prices quoted on stock exchanges would result in an approximately $540 million ($359 million for FPL) reduction in fair value. For FPL, a corresponding adjustment would be made to the related regulatory asset or liability accounts based on current regulatory treatment, and for NEE’s non-rate regulated operations, a corresponding amount would be recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE's condensed consolidated statements of income. See Note 3.

Credit Risk

NEE and its subsidiaries, including FPL, are also exposed to credit risk through their energy marketing and trading operations. Credit risk is the risk that a financial loss will be incurred if a counterparty to a transaction does not fulfill its financial obligation. NEE manages counterparty credit risk for its subsidiaries with energy marketing and trading operations through established policies, including counterparty credit limits, and in some cases credit enhancements, such as cash prepayments, letters of credit, cash and other collateral and guarantees.

Credit risk is also managed through the use of master netting agreements. NEE’s credit department monitors current and forward credit exposure to counterparties and their affiliates, both on an individual and an aggregate basis. For all derivative and contractual transactions, NEE’s energy marketing and trading operations, which include FPL’s energy marketing and trading division, are exposed to losses in the event of nonperformance by counterparties to these transactions. Some relevant considerations when assessing NEE’s energy marketing and trading operations’ credit risk exposure include the following:

•Operations are primarily concentrated in the energy industry.

•Trade receivables and other financial instruments are predominately with energy, utility and financial services related companies, as well as municipalities, cooperatives and other trading companies in the U.S.

•Overall credit risk is managed through established credit policies and is overseen by the EMC.

•Prospective and existing customers are reviewed for creditworthiness based upon established standards, with customers not meeting minimum standards providing various credit enhancements or secured payment terms, such as letters of credit or the posting of margin cash collateral.

•Master netting agreements are used to offset cash and noncash gains and losses arising from derivative instruments with the same counterparty. NEE’s policy is to have master netting agreements in place with significant counterparties.

Based on NEE’s policies and risk exposures related to credit, NEE and FPL do not anticipate a material adverse effect on their financial statements as a result of counterparty nonperformance. At June 30, 2024, NEE's credit risk exposure associated with its energy marketing and trading operations, taking into account collateral and contractual netting rights, totaled approximately $3.0 billion ($86 million for FPL), of which approximately 92% (99% for FPL) was with companies that have investment grade credit ratings. See Note 2.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Management's Discussion – Energy Marketing and Trading and Market Risk Sensitivity.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As of June 30, 2024, each of NEE and FPL had performed an evaluation, under the supervision and with the participation of its management, including NEE's and FPL's chief executive officer and chief financial officer, of the effectiveness of the design and operation of each company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, the chief executive officer and the chief financial officer of each of NEE and FPL concluded that the company's disclosure controls and procedures were effective as of June 30, 2024.

(b) Changes in Internal Control Over Financial Reporting

NEE and FPL are continuously seeking to improve the efficiency and effectiveness of their operations and of their internal controls. This results in refinements to processes throughout NEE and FPL. However, there has been no change in NEE's or FPL's internal control over financial reporting (as defined in the Securities Exchange Act of 1934 Rules 13a-15(f) and 15d-15(f)) that occurred during NEE's and FPL's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, NEE's or FPL's internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

See Note 12 – Legal Proceedings.

With regard to environmental proceedings to which a governmental authority is a party, NEE's and FPL's policy is to disclose any such proceeding if it is reasonably expected to result in monetary sanctions of greater than or equal to $1 million.

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in the 2023 Form 10-K. The factors discussed in Part I, Item 1A. Risk Factors in the 2023 Form 10-K, as well as other information set forth in this report, which could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects should be carefully considered. The risks described in the 2023 Form 10-K are not the only risks facing NEE and FPL. Additional risks and uncertainties not currently known to NEE or FPL, or that are currently deemed to be immaterial, also may materially adversely affect NEE's or FPL's business, financial condition, results of operations and prospects.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

(a)Information regarding purchases made by NEE of its common stock during the three months ended June 30, 2024 is as follows:


Period	Total Number of Shares Purchased(a)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under the Program(b)
4/1/24 – 4/30/24	—	$	—	—	180,000,000
5/1/24 – 5/31/24	12,923	$	76.91	—	180,000,000
6/1/24 – 6/30/24	—	$	—	—	180,000,000
Total	12,923	$	76.91	—

————————————

(a)Includes shares of common stock withheld from employees to pay certain withholding taxes upon the vesting of stock awards granted to such employees under the NextEra Energy, Inc. 2021 Long Term Incentive Plan and the NextEra Energy, Inc. Amended and Restated 2011 Long Term Incentive Plan.

(b)In May 2017, NEE's Board of Directors authorized repurchases of up to 45 million shares of common stock (180 million shares after giving effect to the four-for-one stock split of NEE common stock effective October 26, 2020) over an unspecified period.

Item 5. Other Information

(c) During the three months ended June 30, 2024, no director or officer of NEE or FPL or a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Exhibit Number

Description

NEE

FPL

4(a)

One Hundred Thirty-Seventh Supplemental Indenture dated as of May 1, 2024 between Florida Power & Light Compa ny and Deutsche Bank Trust Company Americas, Trustee

4(b)

Purchase Contract Agreement, dated as of June 1, 2024, between NextEra Energy, Inc. and The Bank of New York Mellon, as Purchase Contract Agent

4(c)

Pledge Agreement, dated as of June 1, 2024, between NextEra Energy, Inc., Deutsche Bank Trust Company Americas, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York Mellon, as Purchase Contract Agent

4(d)

Officer's Certificate of NextEra Energy Capital Holdings, Inc., dated June 7 , 2024 , creating the Series R Junior Subordinated De bentures due June 15, 2054

4(e)

Officer's Certificate of NextEra Energy Holdings, In c., dated June 20, 202 4 , creat ing the Series N Debentures due June 1, 2029

4(f)

Officer's Certificate of Florida Power & Light Company , dated Jul y 1, 2024, creating the Floating Rate Notes, Series due Jul y 2, 2074

10(a)

Form of Restricted Stock Award Agreement under the NextEra Energy, Inc. 2021 Long Term Incentive Plan for certain executive officers

10(b)

Form of Restricted Stock Award Agreement under the NextEra Energy, Inc. 2021 Long Term Incentive Plan for certain executive officers

10(c)

E xecutive Retention Employment Agreement between NextEra Energy , Inc. and Brian Bolster dated as of May 6, 2024

Guaranteed Securities

31(a)

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of NextEra Energy, Inc.

31(b)

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of NextEra Energy, Inc.

31(c)

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Florida Power & Light Company

31(d)

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Florida Power & Light Company

32(a)

Section 1350 Certification of NextEra Energy, Inc.

32(b)

Section 1350 Certification of Florida Power & Light Company

101.INS

XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Schema Document

101.PRE

Inline XBRL Presentation Linkbase Document

101.CAL

Inline XBRL Calculation Linkbase Document

101.LAB

Inline XBRL Label Linkbase Document

101.DEF

Inline XBRL Definition Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

NEE and FPL agree to furnish to the SEC upon request any instrument with respect to long-term debt that NEE and FPL have not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

Date: July 24, 2024


NEXTERA ENERGY, INC. (Registrant)


JAMES M. MAY
James M. May Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)




FLORIDA POWER & LIGHT COMPANY (Registrant)


KEITH FERGUSON
Keith Ferguson Vice President, Accounting and Controller (Principal Accounting Officer)

NEXTERA ENERGY INC - Quarter Report: 2024 June (Form 10-Q)

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