NEE's AROs relate primarily to decommissioning obligations of FPL's and NEER's nuclear units and to obligations for the dismantlement of certain of NEER's wind and solar facilities. For NEE's rate-regulated operations, including FPL, the accounting provisions result in timing differences in the recognition of legal asset retirement costs for financial reporting purposes and the method the regulator allows for recovery in rates. See Note 1 – Rate Regulation and – Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs.


	NEE			FPL
	(millions)
Balances, December 31, 2023	$	3,437		$	2,170
Liabilities incurred	157			56
Accretion expense	165			87
Liabilities settled	(75)		(a)	(31)
Revision in estimated cash flows – net	14			13

Balances, December 31, 2024	3,698		(b)	2,295		(b)
Liabilities incurred	102			13
Accretion expense	177			93
Liabilities settled	(53)		(a)	(26)
Revision in estimated cash flows – net	(239)			(205)

Balances, December 31, 2025	$	3,685	(b)	$	2,170	(b)

(a)Includes approximately $24 million and $39 million related to sales of businesses and assets during the years ended December 31, 2025 and 2024, respectively.

(b)Includes the current portion of AROs as of December 31, 2025 and 2024 of approximately $16 million ($12 million for FPL) and $27 million ($19 million for FPL), respectively, which are included in current other liabilities on NEE's and FPL's consolidated balance sheets.

Restricted funds for the payment of future expenditures to decommission NEE's and FPL's nuclear units included in special use funds on NEE's and FPL's consolidated balance sheets are presented below (see Note 4).

NEE and FPL have identified but not recognized ARO liabilities related to the majority of their electric transmission and distribution assets and pipelines resulting from easements over property not owned by NEE or FPL. These easements are generally perpetual and only require retirement action upon abandonment or cessation of use of the property or facility for its specified purpose. The related ARO liability is not estimable for such easements as NEE and FPL intend to use these properties indefinitely. In the event NEE or FPL decide to abandon or cease the use of a particular easement, an ARO liability would be recorded at that time.