|
|
|
|
|
|
|
|
) | | () | |
|
| | | |
|
|
|
|
|
| 2023 |
| | | | $ | | |
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | | | | | | | |
| | | |
Net unrealized gains (losses) on available for sale securities: | | | | | | | |
) | | | |
| | | |
Defined benefit pension and other benefits plans: | | | | | | | |
|
| | | |
) | | | |
|
) | | | |
| | | |
|
| | | |
| | | | $ | | |
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 BALANCE SHEETS
(millions, except par value)
(unaudited)
| | | | | | | | | | | | | | |
| | | March 31, 2024 | | December 31, 2023 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | | | | $ | | |
Customer receivables, net of allowances of $ and $, respectively | | | | | | |
| Other receivables | | | | | | |
| Materials, supplies and fuel inventory | | | | | | |
| Regulatory assets | | | | | | |
| Derivatives | | | | | | |
| Contract assets | | | | | | |
| Other | | | | | | |
| Total current assets | | | | | | |
| Other assets: | | | | |
Property, plant and equipment – net ($ and $ related to VIEs, respectively) | | | | | | |
| Special use funds | | | | | | |
| Investment in equity method investees | | | | | | |
| Prepaid benefit costs | | | | | | |
| Regulatory assets | | | | | | |
| Derivatives | | | | | | |
| Goodwill | | | | | | |
| Other | | | | | | |
| Total other assets | | | | | | |
| TOTAL ASSETS | | $ | | | | $ | | |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | |
| Current liabilities: | | | | |
| Commercial paper | | $ | | | | $ | | |
| Other short-term debt | | | | | | |
Current portion of long-term debt ($ and $ related to VIEs, respectively) | | | | | | |
Accounts payable ($ and $ related to VIEs, respectively) | | | | | | |
| Customer deposits | | | | | | |
| Accrued interest and taxes | | | | | | |
| Derivatives | | | | | | |
| Accrued construction-related expenditures | | | | | | |
| Regulatory liabilities | | | | | | |
| Other | | | | | | |
| Total current liabilities | | | | | | |
| Other liabilities and deferred credits: | | | | |
Long-term debt ($ and $ related to VIEs, respectively) | | | | | | |
| Asset retirement obligations | | | | | | |
| Deferred income taxes | | | | | | |
| Regulatory liabilities | | | | | | |
| Derivatives | | | | | | |
| Other | | | | | | |
| Total other liabilities and deferred credits | | | | | | |
| TOTAL LIABILITIES | | | | | | |
| COMMITMENTS AND CONTINGENCIES | | | | | | |
| EQUITY | | | | |
Common stock ($ par value, authorized shares – ; outstanding shares – and , respectively) | | | | | | |
| Additional paid-in capital | | | | | | |
| Retained earnings | | | | | | |
| Accumulated other comprehensive loss | | () | | | () | |
| Total common shareholders' equity | | | | | | |
Noncontrolling interests ($ and $ related to VIEs, respectively) | | | | | | |
| TOTAL EQUITY | | | | | | |
| TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS 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.
NEXTERA ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
(unaudited)
| | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| | 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 | | | | | | |
| | | |
| Unrealized gains on marked to market derivative contracts – net | | () | | | () | |
| | | |
| Foreign currency transaction gains | | () | | | () | |
| Deferred income taxes | | | | | | |
| Cost recovery clauses and franchise fees | | | | | | |
| | | |
| | | |
| Equity in earnings of equity method investees | | () | | | () | |
| Distributions of earnings from equity method investees | | | | | | |
| Losses (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 ACTIVITIES | | | | |
| Capital 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 ACTIVITIES | | | | |
| Issuances 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 increase (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 INFORMATION | | | | |
| Cash paid for interest (net of amount capitalized) | | $ | | | | $ | | |
| Cash paid (received) 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.
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 March 31, 2024 | Shares | | Aggregate Par Value | | |
Balances, December 31, 2023 | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Net income (loss) | — | | | — | | | — | | | — | | | | | | | | | () | | | | | | |
| | | | | | | | |
| Share-based payment activity | | | | — | | | | | | — | | | — | | | | | | — | | | | | — | |
Dividends on common stock(a) | — | | | — | | | — | | | — | | | () | | | () | | | — | | | | | — | |
Other comprehensive loss | — | | | — | | | — | | | () | | | — | | | () | | | () | | | | | — | |
| | | | | | | | |
| | | | | | | | |
Other differential membership interests activity | — | | | — | | | () | | | — | | | — | | | () | | | | | | | | () | |
Other – net | — | | | — | | | () | | | | | | | | | () | | | () | | | | | — | |
| Balances, March 31, 2024 | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
———————————————
(a) for the three months ended March 31, 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 |
| Three Months Ended March 31, 2023 | Shares | | 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 | | | | — | | | | | | — | | | — | | | | | | — | | | | | — | |
| | | | | | | | |
|
|
|
| | | |
|
|
))| | | | $ | | |
_______________________
(a)
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 BALANCE SHEETS
(millions, except share amount)
(unaudited)
| | | | | | | | | | | | | | |
| March 31, 2024 | | December 31, 2023 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | | | | $ | | |
Customer receivables, net of allowances of $ and $, respectively | | | | | |
| Other receivables | | | | | |
| Materials, supplies and fuel inventory | | | | | |
| Regulatory assets | | | | | |
| | |
| Other | | | | | |
| Total current assets | | | | | |
| Other assets: | | | |
| Electric utility plant and other property – net | | | | | |
| Special use funds | | | | | |
| Prepaid benefit costs | | | | | |
| Regulatory assets | | | | | |
| Goodwill | | | | | |
| Other | | | | | |
| Total other assets | | | | | |
| TOTAL ASSETS | $ | | | | $ | | |
| LIABILITIES AND EQUITY | | | |
| Current liabilities: | | | |
| Commercial paper | $ | | | | $ | | |
| Other short-term debt | | | | | |
| Current portion of long-term debt | | | | | |
| Accounts payable | | | | | |
| Customer deposits | | | | | |
| Accrued interest and taxes | | | | | |
| | |
| Accrued construction-related expenditures | | | | | |
| Regulatory liabilities | | | | | |
| Other | | | | | |
| Total current liabilities | | | | | |
| Other liabilities and deferred credits: | | | |
| Long-term debt | | | | | |
| Asset retirement obligations | | | | | |
| Deferred income taxes | | | | | |
| Regulatory liabilities | | | | | |
| | |
| Other | | | | | |
| Total other liabilities and deferred credits | | | | | |
| TOTAL LIABILITIES | | | | | | |
| COMMITMENTS AND CONTINGENCIES | par value, shares authorized, issued and outstanding) | | | | | |
| Additional paid-in capital | | | | | |
| Retained earnings | | | | | |
| | |
| 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)
| | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| | | 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 | | | | | | |
| | | |
| Other – net | | () | | | () | |
| Net cash provided by financing activities | | | | | | |
| Net increase (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 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 March 31, 2024 | Common Stock | | Additional Paid-In Capital | | Retained Earnings | | Common Shareholder's Equity |
Balances, December 31, 2023 | $ | | | | $ | | | | $ | | | | $ | | |
| Net income | — | | | — | | | | | | |
| Capital contributions from NEE | — | | | | | | — | | | |
| | | | | | |
| | | | | | |
| Other | — | | | () | | | | | | |
| Balances, March 31, 2024 | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2023 | Common Stock | | Additional Paid-In Capital | | Retained Earnings | | Common Shareholder's Equity |
Balances, December 31, 2022 | $ | | | | $ | | | | $ | | | | $ | | |
| Net income | — | | | — | | | | | |
| | | | | | |
| | | | | | |
Distribution of a subsidiary to NEE | — | | | () | | | — | | | |
| | | | | | |
Balances, March 31, 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. The results of operations for an interim period generally will not give a true indication of results for the year.
1.
billion ($ billion at FPL) and $ billion ($ billion at FPL) for the three months ended March 31, 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 March 31, 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 March 31, 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)
2.
At March 31, 2024, NEE's AOCI included immaterial amounts related to discontinued interest rate cash flow hedges with expiration dates through March 2035 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 | | | | | | | | | | |
| 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.
At March 31, 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 March 31, 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.
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
| | $ | | | | Discounted cash flow | | Forward price (per MWh) | | $() | — | $ | | $ | Forward contracts – gas | | | | | | | | Discounted cash flow | | Forward price (per MMBtu) | | $ | — | $ | | $ |
Forward contracts – congestion | | | | | | | | Discounted cash flow | | Forward price (per MWh) | | $() | — | $ | | $ |
Options – power | | | | | | | | Option models | | Implied correlations | | % | — | % | | % |
| | | | | | | | Implied volatilities | | % | — | % | | % |
Options – primarily gas | | | | | | | | Option models | | Implied correlations | | % | — | % | | % |
| | | | | | | | Implied volatilities | | % | — | % | | % |
Full requirements and unit contingent contracts | | | | | | | | Discounted cash flow | | Forward 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 | () | | | | | | () | | | | |
| | | | | | |
|
|
|
| | | | | | |
| | | | $ | | |
| | | | | | |
) | | () | |
| | | | | | |
|
)| | | | $ | | |
———————————————
(a)For the three months ended March 31, 2024 and 2023, FPL recorded losses of approximately $ million and $ million, respectively, related to commodity contracts as regulatory assets 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 | | | | | MMBtu |
| Oil | | () | | | barrels | | | | | | | () | | | barrels | | | | | |
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
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 March 31, 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 March 31, 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 March 31, 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, applicable NEE subsidiaries could be required to post additional collateral of up to approximately $ billion ($ million at FPL) at March 31, 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 March 31, 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.
3.
million and $ million at March 31, 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 | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | |
|
|
|
|
|
|
|
| | | | $ | | |
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 |
| | March 31, 2024 | | December 31, 2023 | | March 31, 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 March 31, 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.
4.
% and %, respectively. NEE's effective income tax rate is based on the composition of pretax income or loss.
% | | | % | | | % | | | | | | | | | Increases (reductions) resulting from: | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
) | | () | | | () | | | () | | | | | | | | |
) | | () | | | () | | | () | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
) | | () | | | () | | | () | | | | | | | | |
| % | | | % | | | % | | | % | | | | | | | |
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
of production absent a repowering of the wind and solar projects.
5.
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.
6.
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 March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 2024 and 2023, respectively.
7.
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
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
million and $ million, respectively, at March 31, 2024, and $ million and $ million, respectively, at December 31, 2023. At March 31, 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 that went into service during the first quarter of 2022. 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 March 31, 2024, and $ million and $ million, respectively, at December 31, 2023. At March 31, 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 March 31, 2024, and $ million and $ million, respectively, at December 31, 2023. At March 31, 2024 and December 31, 2023, the assets of this VIE consisted primarily of property, plant and equipment.
NextEra Energy Resources consolidates 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, and own wind generation, solar generation and battery storage facilities that, upon completion of construction, which is anticipated in 2024, are expected to have 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 March 31, 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 March 31, 2024 and December 31, 2023, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and accounts payable.
Other – At March 31, 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 March 31, 2024 and December 31, 2023, respectively. At March 31, 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.
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
8.
| | $ | | | | $ | | | | $ | | | | | | | | | |
| | | | | | | | | | | | | | | | |
) | | () | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| () | | | $ | () | | | $ | | | | $ | | | | | | | | | |
| () | | | $ | () | | | $ | | | | $ | | | | | | | | | | ———————————————
(a) Reflects enhanced early retirement benefit.
9.
| | | % | – | | % | | 2026 | – | 2054 |
| Debentures – variable | $ | | | | | (a) | 2026 |
| Junior subordinated debentures | $ | | | | | % | (b) | 2054 |
Exchangeable senior notes(c) | $ | | | | | % | | 2027 |
Canadian dollar denominated debentures(d) | $ | | | | | % | | 2031 |
| Revolving credit facilities | $ | | | | | (a) | 2025 |
| | | | |
| |
| | | | | |
| | | | | |
|
| | | | | |
|
|
|
|
|
| | | | | | |
| | | | $ | | |
| | | | | | |
| | | | | | |
| | | | | | |
|
|
| | | | $ | | |
———————————————(a)Calculated using the treasury stock method. Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award.
Common shares issuable pursuant to equity units, stock options and/or performance share awards, exchangeable notes, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were approximately million and million for the three months ended March 31, 2024 and 2023, respectively.
| | $ | () | | | $ | () | | | $ | () | | | $ | | | | $ | () | | Other comprehensive loss before reclassifications | | | | () | | | | | | () | | | | | | () | |
| Amounts reclassified from AOCI | | | | | | (a) | | | | | | | | | | | |
Net other comprehensive loss | | | | () | | | | | | () | | | | | | () | |
Less other comprehensive loss attributable to noncontrolling interests | | | | | | | | | | | | | | | | | |
| Balances, March 31, 2024 | $ | | | | $ | () | | | $ | () | | | $ | () | | | $ | | | | $ | () | |
| Attributable to noncontrolling interests | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | () | |
———————————————
(a)Reclassified to gains (losses) 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 before reclassifications | | | | | | | | | | | | | | | | | |
| Amounts reclassified from AOCI | | | (a) | | | (b) | | | | | | | | | | | |
| Net other comprehensive income | | | | | | | | | | | | | | | | | |
| Less other comprehensive income attributable to noncontrolling interests | | | | | | | | | | () | | | | | | () | |
| Balances, March 31, 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 (losses) 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 March 31, 2024 and $ million is netted against derivative assets and $ million is netted against derivative liabilities at December 31, 2023. See Note 2.
| | $ | | | | $ | | | | $ | | | | 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 March 31, 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 March 31, 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.
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
million during the three months ended March 31, 2024, 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 March 31, 2024 and 2023, NEE recorded earnings of 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.
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 and $ million for the remainder of 2024 through 2027, 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 March 31, 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
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
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.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | |
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 and totaled approximately $ million and $ million for the three months ended March 31, 2024 and 2023, 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, that is constructing a natural gas pipeline. The transportation agreement commitments are subject to the completion of construction which is expected in mid-2024.
(c)Includes approximately $ million of commitments to invest in technology and other investments through 2031. See Note 7 – Other.
(d)Includes approximately $ million, $ million and $ million for the remainder of 2024 through 2026, 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.
NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)
(unaudited)
, , , a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of shares of NEE's common stock until January 31, 2025.•On , , , a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of shares of NEE's common stock until December 31, 2024.
Item 6. Exhibits
` | | | | | | | | | | | | | | | | | | | | |
| Exhibit Number | | Description | | NEE | | FPL |
*4(a) | | | | x | | |
*4(b) | | | | x | | |
*4(c) | | | | x | | |
*4(d) | | | | x | | |
*4(e) | | | | x | | |
*4(f) | | | | x | | |
*4(g) | | | | x | | |
*4(h) | | | | x | | |
*10(a) | | | | x | | |
*10(b) | | | | x | | x |
*10(c) | | | | x | | |
*10(d) | | | | x | | |
| 22 | | | | x | | |
| 31(a) | | | | x | | |
| 31(b) | | | | x | | |
| 31(c) | | | | | | x |
| 31(d) | | | | | | x |
| 32(a) | | | | x | | |
| 32(b) | | | | | | x |
| 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 | | x | | x |
| 101.SCH | | Inline XBRL Schema Document | | x | | x |
| 101.PRE | | Inline XBRL Presentation Linkbase Document | | x | | x |
| 101.CAL | | Inline XBRL Calculation Linkbase Document | | x | | x |
| 101.LAB | | Inline XBRL Label Linkbase Document | | x | | x |
| 101.DEF | | Inline XBRL Definition Linkbase Document | | x | | x |
| 104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | | x | | x |
_________________________
* Incorporated herein by reference
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: April 23, 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) |
Similar companies
See also SOUTHERN CO -
Annual report 2022 (10-K 2022-12-31)
Annual report 2023 (10-Q 2023-09-30)
See also DOMINION ENERGY, INC -
Annual report 2022 (10-K 2022-12-31)
Annual report 2023 (10-Q 2023-09-30)
See also AMERICAN ELECTRIC POWER CO INC -
Annual report 2022 (10-K 2022-12-31)
Annual report 2023 (10-Q 2023-09-30)
See also ENEL SOCIETA PER AZIONI
See also EVERSOURCE ENERGY -
Annual report 2022 (10-K 2022-12-31)
Annual report 2023 (10-Q 2023-09-30)