Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The tables below present NEE's and FPL's gross derivative positions as of March 31, 2026 and December 31, 2025, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the condensed consolidated balance sheets.


	March 31, 2026
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,371	$	3,380	$	2,101	$	(4,984)	$	2,868
Interest rate contracts	$	—	$	317	$	—	$	(97)	220
Foreign currency contracts	$	—	$	15	$	—	$	(46)	(31)
Total derivative assets									$	3,057

FPL – commodity contracts	$	—	$	6	$	27	$	(4)	$	29

Liabilities:
NEE:
Commodity contracts	$	2,767	$	3,616	$	1,178	$	(5,150)	$	2,411
Interest rate contracts	$	—	$	395	$	18	$	(97)	316
Foreign currency contracts	$	—	$	329	$	—	$	(46)	283
Total derivative liabilities									$	3,010

FPL – commodity contracts	$	—	$	7	$	47	$	(4)	$	50

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,237
Noncurrent derivative assets(c)									1,820
Total derivative assets									$	3,057
Current derivative liabilities(d)									$	1,176

Noncurrent derivative liabilities(e)									1,834
Total derivative liabilities									$	3,010

Net fair value by FPL balance sheet line item:
Current other assets									$	28
Noncurrent other assets									1
Total derivative assets									$	29
Current other liabilities									$	49
Noncurrent other liabilities									1
Total derivative liabilities									$	50

———————————————

(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 $36 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $38 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $190 million in margin cash collateral paid to counterparties.

(e)Reflects the netting of approximately $50 million in margin cash collateral paid to counterparties.


	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

———————————————

(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.

Significant unobservable inputs used in valuation of contracts categorized as Level 3

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy as of March 31, 2026 are as follows:


	Fair Value as of				Valuation	Significant				Weighted-
Transaction Type	March 31, 2026				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	461	$	301	Discounted cash flow	Forward price (per MWh)	$—	—	$181	$52
Forward contracts – gas	641		178		Discounted cash flow	Forward price (per MMBtu)	$(4)	—	$21	$3
Forward contracts – congestion	60		36		Discounted cash flow	Forward price (per MWh)	$(58)	—	$35	$1
Options – power	21		—		Option models	Implied correlations	69%	—	74%	71%
						Implied volatilities	36%	—	195%	73%
Options – primarily gas	70		89		Option models	Implied correlations	69%	—	100%	89%
						Implied volatilities	1%	—	93%	45%
Full requirements and unit contingent contracts	247		276		Discounted cash flow	Forward price (per MWh)	$13	—	$351	$87
						Customer migration rate(b)	—%	—	30%	1%
Forward contracts – other	601		298
Total	$	2,101	$	1,178

———————————————

(a)Unobservable inputs were weighted by volume.

(b)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:


	Three Months Ended March 31,
	2026				2025
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of December 31 of prior period	$	682	$	32	$	387	$	34
Realized and unrealized gains (losses):
Included in operating revenues	(257)		—		109		—

Included in regulatory assets and liabilities	(3)		(3)		29		29
Purchases	265		—		38		—

Settlements	290		(49)		(11)		(5)
Issuances	(61)		—		(16)		—

Transfers in(a)	1		—		(17)		—
Transfers out(a)	6		—		(2)		—
Fair value of net derivatives based on significant unobservable inputs as of March 31	$	923	$	(20)	$	517	$	58
Gains included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	30	$	—	$	86	$	—

———————————————

(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.

Net notional volumes

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

March 31, 2026

December 31, 2025

Commodity Type

NEE

FPL

NEE

FPL

(millions)

Power

(250)

MWh

—

(249)

MWh

—

Natural gas

(1,083)

MMBtu

393

MMBtu

(1,087)

MMBtu

378

MMBtu

Oil

barrels

—

barrels

—

Not Designated as Hedging Instrument

Derivative [Line Items]

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

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


	Three Months Ended March 31,
		2026		2025
		(millions)

Commodity contracts(a) – operating revenues (including $70 unrealized gains and $12 unrealized gains, respectively)		$	(61)	$	155

Foreign currency contracts – interest expense (including $232 unrealized losses and $3 unrealized losses, respectively)		(250)		(5)

Interest rate contracts – interest expense (including $146 unrealized gains and $973 unrealized losses, respectively)		21		(775)
Losses reclassified from AOCI to interest expense:

Foreign currency contracts		(1)		(1)
Total		$	(291)	$	(626)

———————————————

(a)For the three months ended March 31, 2026 and 2025, FPL recorded gains of approximately $12 million and $32 million, respectively, related to commodity contracts as regulatory liabilities on its condensed consolidated balance sheets.

- 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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