Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of derivative instruments in statement of financial position, fair value

Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the consolidated balance sheets.


	December 31, 2025
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,914	$	2,958	$	1,850	$	(4,007)	$	2,715
Interest rate contracts	$	—	$	311	$	—	$	(77)	234
Foreign currency contracts	$	—	$	34	$	—	$	12	46
Total derivative assets									$	2,995

FPL – commodity contracts	$	—	$	5	$	48	$	(13)	$	40

Liabilities:
NEE:
Commodity contracts	$	2,082	$	3,319	$	1,168	$	(3,921)	$	2,648
Interest rate contracts	$	—	$	563	$	—	$	(77)	486
Foreign currency contracts	$	—	$	115	$	—	$	12	127
Total derivative liabilities									$	3,261

FPL – commodity contracts	$	—	$	13	$	16	$	(13)	$	16

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	997
Noncurrent derivative assets(c)									1,998
Total derivative assets									$	2,995
Current derivative liabilities(d)									$	1,113

Noncurrent derivative liabilities									2,148
Total derivative liabilities									$	3,261

Net fair value by FPL balance sheet line item:
Current other assets									$	39
Noncurrent other assets									1
Total derivative assets									$	40
Current other liabilities									$	15
Noncurrent other liabilities									1
Total derivative liabilities									$	16

______________________

(a)Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables – net and accounts payable, respectively.

(b)Reflects the netting of approximately $68 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $99 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $81 million in margin cash collateral paid to counterparties.


	December 31, 2024
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,778	$	3,040	$	1,339	$	(4,032)	$	2,125
Interest rate contracts	$	—	$	577	$	—	$	(44)	533
Foreign currency contracts	$	—	$	—	$	—	$	(5)	(5)
Total derivative assets									$	2,653

FPL – commodity contracts	$	—	$	9	$	47	$	(16)	$	40

Liabilities:
NEE:
Commodity contracts	$	1,983	$	3,364	$	952	$	(3,557)	$	2,742
Interest rate contracts	$	—	$	284	$	—	$	(44)	240
Foreign currency contracts	$	—	$	104	$	—	$	(5)	99
Total derivative liabilities									$	3,081

FPL – commodity contracts	$	—	$	5	$	13	$	(11)	$	7

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	879

Noncurrent derivative assets(c)									1,774
Total derivative assets									$	2,653
Current derivative liabilities									$	1,073

Noncurrent derivative liabilities									2,008
Total derivative liabilities									$	3,081

Net fair value by FPL balance sheet line item:
Current other assets									$	31
Noncurrent other assets									9
Total derivative assets									$	40
Current other liabilities									$	3
Noncurrent other liabilities									4
Total derivative liabilities									$	7

______________________

(b)Reflects the netting of approximately $154 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $321 million in margin cash collateral received from counterparties.

Fair Value Inputs, Assets, Quantitative Information

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy as of December 31, 2025 are as follows:


Transaction Type	Fair Value at December 31, 2025				Valuation Technique(s)	Significant Unobservable Inputs	Range			Weighted-average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	486	$	378	Discounted cash flow	Forward price (per MWh(b))	$—	—	$333	$53
Forward contracts – gas	455		129		Discounted cash flow	Forward price (per MMBtu(c))	$—	—	$15	$4
Forward contracts – congestion	47		23		Discounted cash flow	Forward price (per MWh(b))	$(63)	—	$58	$—
Options – power	23		1		Option models	Implied correlations	69%	—	75%	71%
						Implied volatilities	37%	—	312%	91%
Options – primarily gas	71		82		Option models	Implied correlations	69%	—	100%	94%
						Implied volatilities	16%	—	145%	46%
Full requirements and unit contingent contracts	193		296		Discounted cash flow	Forward price (per MWh(b))	$19	—	$430	$90
						Customer migration rate(d)	—%	—	28%	1%
Forward contracts – other	575		259
Total	$	1,850	$	1,168

______________________

(a)Unobservable inputs were weighted by volume.

(b)Megawatt-hours

(c)One million British thermal units

(d)Applies only to full requirements contracts.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The sensitivity of NEE's fair value measurements to increases (decreases) in the significant unobservable inputs is as follows:

Significant Unobservable Input

Position

Impact on
Fair Value Measurement

Forward price

Purchase power/gas

Increase (decrease)

Sell power/gas

Decrease (increase)

Implied correlations

Purchase option

Decrease (increase)

Sell option

Increase (decrease)

Implied volatilities

Purchase option

Increase (decrease)

Sell option

Decrease (increase)

Customer migration rate

Sell power(a)

Decrease (increase)

————————————

(a)Assumes the contract is in a gain position.

Reconciliation of changes in the fair value of derivatives measured based on significant unobservable inputs

The reconciliation of changes in the fair value of commodity contract derivatives that are based on significant unobservable inputs is as follows:


	Years Ended December 31,
	2025				2024				2023
	NEE		FPL		NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of December 31 of prior year	$	387	$	34	$	951	$	24	$	(854)	$	9
Realized and unrealized gains (losses):
Included in operating revenues	587		—		339		—		2,792		—

Included in regulatory assets and liabilities	(24)		(24)		49		49		23		23
Purchases	204		—		161		—		412		—

Settlements	(357)		22		(998)		(27)		(1,521)		(11)
Issuances	(97)		—		(128)		—		(139)		—

Transfers in(a)	(17)		—		20		(12)		(129)		1
Transfers out(a)	(1)		—		(7)		—		367		2
Fair value of net derivatives based on significant unobservable inputs as of December 31	$	682	$	32	$	387	$	34	$	951	$	24
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	395	$	—	$	(25)	$	—	$	1,482	$	—

______________________

(a)Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data.

Derivative instruments, gain (loss) in statement of financial performance

Gains (losses) related to NEE's derivatives are recorded in NEE's consolidated statements of income as follows:


	Years Ended December 31,
	2025		2024		2023
	(millions)

Commodity contracts(a) – operating revenues (including $299 unrealized gains, $8 unrealized gains and $2,502 unrealized gains, respectively)	$	470	$	97	$	2,513

Foreign currency contracts – interest expense (including $20 unrealized gains, $58 unrealized losses and $81 unrealized gains, respectively)	(25)		(71)		(62)

Interest rate contracts – interest expense (including $518 unrealized losses, $542 unrealized gains and $634 unrealized losses, respectively)	(392)		1,349		(226)
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	1		2		(1)
Foreign currency contracts	(3)		(3)		(2)
Total	$	51	$	1,374	$	2,222

______________________

(a)For the years ended December 31, 2025, 2024 and 2023, FPL recorded gains (losses) of approximately $(49) million, $50 million and $5 million, respectively, related to commodity contracts as regulatory liabilities (assets), respectively, on its consolidated balance sheets.

Net notional volumes

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

December 31, 2025

December 31, 2024

Commodity Type

NEE

FPL

NEE

FPL

(millions)

Power

(249)

MWh

—

(189)

MWh

—

Natural gas

(1,087)

MMBtu

378

MMBtu

(1,131)

MMBtu

503

MMBtu

Oil

barrels

—

(25)

barrels

—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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