Item 8. Financial Statements and Supplementary Data

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Item 8. Financial Statements and Supplementary Data

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

NextEra Energy, Inc.'s (NEE) and Florida Power & Light Company's (FPL) management are responsible for establishing and maintaining adequate internal control over financial reporting as defined in the Securities Exchange Act of 1934 Rules 13a-15(f) and 15d-15(f). The consolidated financial statements, which in part are based on informed judgments and estimates made by management, have been prepared in conformity with generally accepted accounting principles applied on a consistent basis.

To aid in carrying out this responsibility, we, along with all other members of management, maintain a system of internal accounting control which is established after weighing the cost of such controls against the benefits derived. In the opinion of management, the overall system of internal accounting control provides reasonable assurance that the assets of NEE and FPL and their subsidiaries are safeguarded and that transactions are executed in accordance with management's authorization and are properly recorded for the preparation of financial statements. In addition, management believes the overall system of internal accounting control provides reasonable assurance that material errors or irregularities would be prevented or detected on a timely basis by employees in the normal course of their duties. Any system of internal accounting control, no matter how well designed, has inherent limitations, including the possibility that controls can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation and reporting.

The system of internal accounting control is supported by written policies and guidelines, the selection and training of qualified employees, an organizational structure that provides an appropriate division of responsibility and a program of internal auditing. NEE's written policies include a Code of Business Conduct & Ethics that states management's policy on conflicts of interest and ethical conduct. Compliance with the Code of Business Conduct & Ethics is confirmed annually by key personnel.

The Board of Directors pursues its oversight responsibility for financial reporting and accounting through its Audit Committee. This Committee, which is comprised entirely of independent directors, meets regularly with management, the internal auditors and the independent auditors to make inquiries as to the manner in which the responsibilities of each are being discharged. The independent auditors and the internal audit staff have free access to the Committee without management present to discuss auditing, internal accounting control and financial reporting matters.

Management assessed the effectiveness of NEE's and FPL's internal control over financial reporting as of December 31, 2024, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the Internal Control – Integrated Framework (2013). Based on this assessment, management believes that NEE's and FPL's internal control over financial reporting was effective as of December 31, 2024.

NEE's and FPL's independent registered public accounting firm, Deloitte & Touche LLP, is engaged to express an opinion on NEE's and FPL's consolidated financial statements and an opinion on NEE's and FPL's internal control over financial reporting. Their reports are based on procedures believed by them to provide a reasonable basis to support such opinions. These reports appear on the following pages.

JOHN W. KETCHUMBRIAN W. BOLSTER
John W. Ketchum Chairman, President and Chief Executive Officer of NEE and Chairman of FPLBrian W. Bolster Executive Vice President, Finance and Chief Financial Officer of NEE and FPL
JAMES M. MAY
James M. May Vice President, Controller and Chief Accounting Officer of NEE
ARMANDO PIMENTEL, JR.KEITH FERGUSON
Armando Pimentel, Jr. President and Chief Executive Officer of FPLKeith Ferguson Vice President, Accounting and Controller of FPL

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of

NextEra Energy, Inc. and Florida Power & Light Company

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of NextEra Energy, Inc. and subsidiaries (NEE) and Florida Power & Light Company and subsidiaries (FPL) as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, NEE and FPL maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024 of NEE and FPL and our report dated February 14, 2025, expressed unqualified opinions on those financial statements.

Basis for Opinion

NEE's and FPL’s management are responsible for maintaining effective internal control over financial reporting and for their assessments of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on NEE’s and FPL’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to NEE and FPL in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audits included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

DELOITTE & TOUCHE LLP

Boca Raton, Florida

February 14, 2025

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of

NextEra Energy, Inc. and Florida Power & Light Company

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of NextEra Energy, Inc. and subsidiaries (NEE) and the related separate consolidated balance sheets of Florida Power & Light Company and subsidiaries (FPL) as of December 31, 2024 and 2023, and NEE's and FPL's related consolidated statements of income and cash flows, NEE's consolidated statements of comprehensive income and equity, and FPL’s consolidated statements of common shareholder’s equity, for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of NEE and FPL as of December 31, 2024 and 2023, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), NEE’s and FPL’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 14, 2025, expressed unqualified opinions on NEE’s and FPL’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of NEE’s and FPL’s management. Our responsibility is to express opinions on NEE’s and FPL’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to NEE and FPL in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinions.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements of NEE and FPL that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

NEE – Operating Revenue – Unrealized Losses – Refer to Note 3 to the financial statements

Critical Audit Matter Description

NEE enters into complex energy derivatives and transacts in certain markets that are thinly traded, which may result in subjective estimates of fair value that include unobservable inputs. Changes in the derivatives’ fair value for power purchases and sales, fuel sales and trading activities are primarily recognized on a net basis in operating revenues. For the year ended December 31, 2024, unrealized losses associated with Level 3 transactions of $25 million are included in operating revenues in the consolidated statement of income of NEE.

Given management uses complex proprietary models and unobservable inputs to estimate the fair value of Level 3 derivative assets and liabilities, performing audit procedures to evaluate the appropriateness of these models and inputs required a high degree of auditor judgment and an increased extent of effort, including the need to involve our firm specialists who possess significant quantitative and modeling expertise.

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How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to operating revenue – unrealized losses included the following, among others:

  • We tested the effectiveness of controls relating to commodity valuation models, their related Level 3 unobservable inputs, and market data validation.

  • We selected a sample of transactions, obtained an understanding of the business rationale of transactions, and read the underlying contractual agreements.

  • We used personnel in our firm who specialize in energy transacting to independently value Level 3 transactions. For certain fair value models, we used our firm specialists to directly test the underlying assumptions of the unobservable inputs used by management.

  • We evaluated NEE’s disclosures related to the proprietary models and unobservable inputs to estimate the fair value of Level 3 derivative assets and liabilities, including the balances recorded and significant assumptions.

FPL – Impact of Rate Regulation on the Financial Statements – Refer to Note 1 to the financial statements

Critical Audit Matter Description

FPL is subject to rate regulation by the Florida Public Service Commission (the “FPSC”), which has jurisdiction with respect to the rates of electric utility companies. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment; regulatory assets and liabilities; operating revenues; fuel expense; operation and maintenance expense; and depreciation expense.

Rates are determined and approved in regulatory proceedings based on an analysis of FPL’s costs to provide utility service and a return on, and recovery of, FPL’s investment in the assets required to deliver utility service. Accounting guidance for FPL’s regulated operations provides that rate-regulated entities report assets and liabilities consistent with the recovery of those incurred costs in rates, if it is probable that such rates will be charged and collected. The FPSC has the authority to disallow recovery of costs that it considers excessive or imprudently incurred. Future FPSC decisions could impact the accounting for regulated operations, including decisions about the amount of recoverable costs and any refunds that may be required. As a result of this cost-based regulation, FPL follows the accounting guidance that allows regulators to create assets and impose liabilities, based on the probability of future cash flows, that would not be recorded by non-rate regulated entities. Regulatory assets and liabilities represent probable future revenues that will be recovered from or refunded to customers through the ratemaking process.

We identified the impact of rate regulation as a critical audit matter due to the requirement to have auditors with deep knowledge of and significant experience with accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the impact of rate regulation included the following, among others:

  • We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets, and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities. We also tested the effectiveness of management’s controls over the initial recognition of amounts as property, plant, and equipment and regulatory assets or liabilities, including storm restoration costs; the depreciation and amortization of such amounts in accordance with FPSC orders; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs recognized as property, plant and equipment and regulatory assets in future rates or of a refund or future reduction in rates that should be recognized as a regulatory liability.

  • We assessed the likelihood of (1) recovery of recorded regulatory assets and (2) obligations requiring future reductions in rates by obtaining, reading, and evaluating relevant regulatory orders issued by the FPSC to FPL, and considering regulatory precedents established by the FPSC. We also evaluated such regulatory orders and other publicly available filings made by FPL and compared them to management’s recorded regulatory asset and liability balances for completeness.

  • We evaluated FPL's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

DELOITTE & TOUCHE LLP

Boca Raton, Florida

February 14, 2025

We have served as NEE’s and FPL’s auditor since 1950.

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NEXTERA ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(millions, except per share amounts)

Years Ended December 31,
202420232022
OPERATING REVENUES$24,753$28,114$20,956
OPERATING EXPENSES
Fuel, purchased power and interchange5,0295,4576,389
Other operations and maintenance4,8574,6814,428
Depreciation and amortization5,4625,8794,503
Taxes other than income taxes and other – net2,2782,2652,077
Total operating expenses – net17,62618,28217,397
GAINS ON DISPOSAL OF BUSINESSES/ASSETS – NET352405522
OPERATING INCOME7,47910,2374,081
OTHER INCOME (DEDUCTIONS)
Interest expense(2,235)(3,324)(585)
Equity in earnings (losses) of equity method investees(246)(648)203
Allowance for equity funds used during construction198161112
Gains on disposal of investments and other property – net16312580
Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net107159(461)
Other net periodic benefit income235245202
Other – net336333200
Total other income (deductions) – net(1,442)(2,949)(249)
INCOME BEFORE INCOME TAXES6,0377,2883,832
INCOME TAXES3391,006586
NET INCOME5,6986,2823,246
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS1,2481,028901
NET INCOME ATTRIBUTABLE TO NEE$6,946$7,310$4,147
Earnings per share attributable to NEE:
Basic$3.38$3.61$2.10
Assuming dilution$3.37$3.60$2.10

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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NEXTERA ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

Years Ended December 31,
202420232022
NET INCOME$5,698$6,282$3,246
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive loss to net income (net of $1 tax benefit, $1 tax benefit and $2 tax benefit, respectively)126
Net unrealized gains (losses) on available for sale securities:
Net unrealized gains (losses) on securities still held (net of $1 tax benefit, $6 tax expense and $29 tax benefit, respectively)(3)17(84)
Reclassification from accumulated other comprehensive loss to net income (net of $2 tax benefit, $4 tax benefit and $3 tax benefit, respectively)51310
Defined benefit pension and other benefits plans:
Net unrealized gains (losses) and unrecognized prior service benefit (cost) (net of $19 tax expense, $7 tax expense and $41 tax benefit, respectively)6021(133)
Reclassification from accumulated other comprehensive loss to net income (net of $0 tax benefit, $0 tax benefit and $2 tax benefit, respectively)—17
Net unrealized gains (losses) on foreign currency translation(27)13(44)
Other comprehensive income related to equity method investees (net of $0 tax expense, $0 tax expense and $0 tax expense, respectively)111
Total other comprehensive income (loss), net of tax3768(237)
COMPREHENSIVE INCOME5,7356,3503,009
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS1,2381,025920
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE$6,973$7,375$3,929

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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NEXTERA ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(millions, except par value)

December 31,
20242023
ASSETS
Current assets:
Cash and cash equivalents$1,487$2,690
Customer receivables, net of allowances of $56 and $52, respectively3,3363,609
Other receivables1,180944
Materials, supplies and fuel inventory2,2142,106
Regulatory assets1,4171,460
Derivatives8791,730
Contract assets2521,487
Other1,1861,335
Total current assets11,95115,361
Other assets:
Property, plant and equipment – net ($25,632 and $26,900 related to VIEs, respectively)138,852125,776
Special use funds9,8008,698
Investment in equity method investees6,1186,156
Prepaid benefit costs2,4962,112
Regulatory assets4,8284,801
Derivatives1,7741,790
Goodwill4,8665,091
Other9,4597,704
Total other assets178,193162,128
TOTAL ASSETS$190,144$177,489
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Commercial paper$1,670$4,650
Other short-term debt217255
Current portion of long-term debt ($25 and $66 related to VIEs, respectively)8,0616,901
Accounts payable ($631 and $1,718 related to VIEs, respectively)6,9828,504
Customer deposits694638
Accrued interest and taxes1,016970
Derivatives1,073845
Accrued construction-related expenditures2,3461,861
Regulatory liabilities279340
Other3,0172,999
Total current liabilities25,35527,963
Other liabilities and deferred credits:
Long-term debt ($436 and $1,374 related to VIEs, respectively)72,38561,405
Asset retirement obligations3,6713,403
Deferred income taxes11,74910,142
Regulatory liabilities10,63510,049
Derivatives2,0082,741
Other3,4802,762
Total other liabilities and deferred credits103,92890,502
TOTAL LIABILITIES129,283118,465
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – VIEs4011,256
EQUITY
Common stock ($0.01 par value, authorized shares – 3,200; outstanding shares – 2,057 and 2,052, respectively)2121
Additional paid-in capital17,26017,365
Retained earnings32,94630,235
Accumulated other comprehensive loss(126)(153)
Total common shareholders' equity50,10147,468
Noncontrolling interests ($10,206 and $10,180 related to VIEs, respectively)10,35910,300
TOTAL EQUITY60,46057,768
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY$190,144$177,489

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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NEXTERA ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

Years Ended December 31,
202420232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$5,698$6,282$3,246
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization5,4625,8794,503
Nuclear fuel and other amortization299272287
Unrealized losses (gains) on marked to market derivative contracts – net(492)(1,949)1,378
Unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds – net(107)(159)461
Foreign currency transaction losses (gains)(85)92(104)
Deferred income taxes1,308708534
Cost recovery clauses and franchise fees1,0161,104(1,465)
Equity in losses (earnings) of equity method investees246648(203)
Distributions of earnings from equity method investees811712541
Gains on disposal of businesses, assets and investments – net(515)(530)(602)
Recoverable storm-related costs(676)(399)(811)
Other – net1353485
Changes in operating assets and liabilities:
Current assets(382)58(1,340)
Noncurrent assets(473)(408)(89)
Current liabilities767(1,109)1,702
Noncurrent liabilities24866139
Net cash provided by operating activities13,26011,3018,262
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL(7,992)(9,302)(9,067)
Independent power and other investments of NEER(16,215)(15,565)(9,541)
Nuclear fuel purchases(399)(185)(223)
Other capital expenditures(123)(61)(452)
Proceeds from the sale of Florida City Gas business—924—
Sale of independent power and other investments of NEER2,6591,8831,564
Proceeds from sale or maturity of securities in special use funds and other investments5,4454,8753,857
Purchases of securities in special use funds and other investments(5,623)(5,926)(4,586)
Other – net(16)(110)89
Net cash used in investing activities(22,264)(23,467)(18,359)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts24,76913,85713,856
Retirements of long-term debt(10,113)(7,978)(4,525)
Proceeds from differential membership investors2,2572,7454,158
Payments to differential membership investors(740)(75)(179)
Net change in commercial paper(2,980)2,941327
Proceeds from other short-term debt6,5751,9801,755
Repayments of other short-term debt(6,613)(2,613)(1,125)
Cash swept from (repayments to) related parties – net(1,371)1,213240
Issuances of common stock/equity units484,5141,514
Dividends on common stock(4,235)(3,782)(3,352)
Other – net(597)(653)(440)
Net cash provided by financing activities7,00012,14912,229
Effects of currency translation on cash, cash equivalents and restricted cash(14)(4)(7)
Net increase (decrease) in cash, cash equivalents and restricted cash(2,018)(21)2,125
Cash, cash equivalents and restricted cash at beginning of year3,4203,4411,316
Cash, cash equivalents and restricted cash at end of year$1,402$3,420$3,441
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)$2,737$2,463$1,375
Cash paid (received) for income taxes – net$(760)$321$(32)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions$6,835$7,104$6,005
Decrease in property, plant and equipment – net and contract liabilities (2023 and 2022 activity, see Note 1)$—$251$668
Right-of-use asset in exchange for finance lease liability$533$124$204

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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NEXTERA ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(millions)

Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal Common Shareholders' EquityNon- controlling InterestsTotal EquityRedeemable Non-controlling Interests
SharesAggregate Par Value
Balances, December 31, 20211,963(a)$20$11,271$—$25,911$37,202$8,222$45,424$245
Net income (loss)————4,1474,147(909)8
Issuances of common stock/equity units – net22—1,446——1,446——
Share-based payment activity2—171——171——
Dividends on common stock(a)————(3,352)(3,352)——
Other comprehensive loss———(218)—(218)(19)—
Premium on equity units——(127)——(127)——
Other differential membership interests activity——(39)——(39)3,131859
Disposal of subsidiaries with noncontrolling interests(b)—————(1,494)—
Other – net——(2)—1(1)166(2)
Balances, December 31, 20221,9872012,720(218)26,70739,2299,097$48,3261,110
Net income (loss)————7,3107,310(1,049)21
Issuances of common stock/equity units – net6114,513——4,514——
Share-based payment activity4—155——155——
Dividends on common stock(a)————(3,782)(3,782)——
Other comprehensive income———65—653—
Other differential membership interests activity——(21)——(21)2,545125
Disposal of subsidiaries with noncontrolling interests(b)——————(165)—
Other – net——(2)——(2)(131)—
Balances, December 31, 20232,0522117,365(153)30,23547,46810,300$57,7681,256
Net income (loss)————6,9466,946(1,266)18
Issuances of common stock/equity units – net——(70)——(70)——
Share-based payment activity5—255——255——
Dividends on common stock(a)————(4,235)(4,235)——
Other comprehensive income———27—2710—
Premium on equity units——(226)——(226)——
Other differential membership interests activity——(10)——(10)2,380(873)
Disposal of subsidiaries with noncontrolling interests(b)——————(846)—
Other – net——(54)——(54)(219)—
Balances, December 31, 20242,057$21$17,260$(126)$32,946$50,101$10,359$60,460$401

(a)Dividends per share were $2.06, $1.87 and $1.70 for the years ended December 31, 2024, 2023 and 2022, respectively.

(b)See Note 1 – Disposal of Businesses/Assets.

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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FLORIDA POWER & LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(millions)

Years Ended December 31,
202420232022
OPERATING REVENUES$17,019$18,365$17,282
OPERATING EXPENSES
Fuel, purchased power and interchange4,1884,7615,688
Other operations and maintenance1,6091,6661,857
Depreciation and amortization2,8273,7892,695
Taxes other than income taxes and other – net1,9041,9591,752
Total operating expenses – net10,52812,17511,992
GAINS ON DISPOSAL OF BUSINESSES/ASSETS – NET14074
OPERATING INCOME6,4926,5975,294
OTHER INCOME (DEDUCTIONS)
Interest expense(1,178)(1,114)(768)
Allowance for equity funds used during construction189155105
Other – net103717
Total other deductions – net(979)(922)(646)
INCOME BEFORE INCOME TAXES5,5135,6754,648
INCOME TAXES9701,123947
NET INCOME(a)$4,543$4,552$3,701

(a)FPL's comprehensive income is the same as reported net income.

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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FLORIDA POWER & LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

December 31,
20242023
ASSETS
Current assets:
Cash and cash equivalents$32$57
Customer receivables, net of allowances of $9 and $8, respectively1,4001,706
Other receivables380319
Materials, supplies and fuel inventory1,3091,339
Regulatory assets1,4051,431
Other257144
Total current assets4,7834,996
Other assets:
Electric utility plant and other property – net76,16670,608
Special use funds6,8756,050
Prepaid benefit costs1,9541,853
Regulatory assets4,4644,343
Goodwill2,9652,965
Other934654
Total other assets93,35886,473
TOTAL ASSETS$98,141$91,469
LIABILITIES AND EQUITY
Current liabilities:
Commercial paper$1,430$2,374
Other short-term debt—255
Current portion of long-term debt1,7191,665
Accounts payable996977
Customer deposits669610
Accrued interest and taxes443661
Accrued construction-related expenditures860486
Regulatory liabilities273335
Other1,105713
Total current liabilities7,4958,076
Other liabilities and deferred credits:
Long-term debt25,02623,609
Asset retirement obligations2,2762,143
Deferred income taxes9,4388,542
Regulatory liabilities10,4659,893
Other365371
Total other liabilities and deferred credits47,57044,558
TOTAL LIABILITIES55,06552,634
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock (no par value, 1,000 shares authorized, issued and outstanding)1,3731,373
Additional paid-in capital26,86823,470
Retained earnings14,83513,992
TOTAL EQUITY43,07638,835
TOTAL LIABILITIES AND EQUITY$98,141$91,469

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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FLORIDA POWER & LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

Years Ended December 31,
202420232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$4,543$4,552$3,701
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization2,8273,7892,695
Nuclear fuel and other amortization172158177
Deferred income taxes602(161)942
Cost recovery clauses and franchise fees1,0161,104(1,465)
Gains on disposal of businesses/assets – net(1)(407)(4)
Recoverable storm-related costs(676)(399)(811)
Other – net(14)(27)20
Changes in operating assets and liabilities:
Current assets262(200)(534)
Noncurrent assets(167)(185)(73)
Current liabilities(23)60175
Noncurrent liabilities(35)1271
Net cash provided by operating activities8,5068,2964,894
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(7,992)(9,302)(9,067)
Nuclear fuel purchases(222)(98)(118)
Proceeds from the sale of Florida City Gas business—924—
Proceeds from sale or maturity of securities in special use funds3,6283,7302,437
Purchases of securities in special use funds(3,801)(3,754)(2,607)
Other – net3(15)(3)
Net cash used in investing activities(8,384)(8,515)(9,358)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts3,2055,6782,942
Retirements of long-term debt(1,721)(1,548)(441)
Net change in commercial paper(944)665327
Proceeds from other short-term debt—55—
Repayments of other short-term debt(255)——
Capital contributions from NEE3,400—3,625
Dividends to NEE(3,700)(4,545)(2,000)
Other – net(46)(72)(39)
Net cash provided by (used in) financing activities(61)2334,414
Net increase (decrease) in cash, cash equivalents and restricted cash6114(50)
Cash, cash equivalents and restricted cash at beginning of year7258108
Cash, cash equivalents and restricted cash at end of year$133$72$58
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)$1,143$1,034$707
Cash paid for income taxes – net$640$981$22
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions$1,169$958$1,024

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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FLORIDA POWER & LIGHT COMPANY

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY

(millions)

Common StockAdditional Paid-In CapitalRetained EarningsCommon Shareholder's Equity
Balances, December 31, 2021$1,373$19,936$12,285$33,594
Net income——3,701
Capital contributions from NEE—3,625—
Dividends to NEE——(2,000)
Balances, December 31, 20221,37323,56113,986$38,920
Net income——4,552
Dividends to NEE——(4,545)
Distribution of a subsidiary to NEE—(90)—
Other—(1)(1)
Balances, December 31, 20231,37323,47013,992$38,835
Net income——4,543
Capital contributions from NEE—3,400—
Dividends to NEE——(3,700)
Other—(2)—
Balances, December 31, 2024$1,373$26,868$14,835$43,076

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

1. Summary of Significant Accounting and Reporting Policies

Basis of Presentation – The operations of NextEra Energy, Inc. (NEE) are conducted primarily through Florida Power & Light Company (FPL), a wholly owned subsidiary, and NextEra Energy Resources, LLC (NextEra Energy Resources) and NextEra Energy Transmission, LLC (NEET) (collectively, NEER), wholly owned indirect subsidiaries that are combined for segment reporting purposes.

FPL's principal business is a rate-regulated electric utility which supplies electric service to more than six million customer accounts throughout most of the east and lower west coasts of Florida and eight counties throughout northwest Florida. NEER invests in independent power projects through both controlled and consolidated entities and noncontrolling ownership interests in joint ventures. NEER participates in natural gas, natural gas liquids and oil production primarily through operating and non-operating ownership interests and in pipeline infrastructure through noncontrolling or joint venture interests. NEER also invests in rate-regulated transmission facilities and transmission lines that connect its electric generation facilities to the electric grid through controlled and consolidated entities and a noncontrolling ownership interest.

The consolidated financial statements of NEE and FPL include the accounts of their respective controlled subsidiaries. They also include NEE's and FPL's share of the undivided interest in certain assets, liabilities, revenues and expenses. Amounts representing NEE's interest in entities it does not control, but over which it exercises significant influence, are included in investment in equity method investees; the earnings/losses of these entities is included in equity in earnings (losses) of equity method investees. Intercompany balances and transactions have been eliminated in consolidation. Certain amounts included in prior years' consolidated financial statements have been reclassified to conform to the current year's presentation. The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Operating Revenues – FPL and NEER generate substantially all of NEE’s operating revenues, which primarily include revenues from contracts with customers as further discussed in Note 2, as well as, at NEER, derivative and lease transactions. FPL's operating revenues include amounts resulting from base rates, cost recovery clauses (see Rate Regulation below), franchise fees, gross receipts taxes and surcharges related to storms (see Storm Funds, Storm Reserves and Storm Cost Recovery below). Franchise fees and gross receipts taxes are imposed on FPL; however, the Florida Public Service Commission (FPSC) allows FPL to include in the amounts charged to customers the amount of the gross receipts tax for all customers and the franchise fee for those customers located in the jurisdiction that imposes the amount. Accordingly, FPL's franchise fees and gross receipts taxes are reported gross in operating revenues and taxes other than income taxes and other in NEE's and FPL's consolidated statements of income and were approximately $1,053 million, $1,139 million and $1,035 million in 2024, 2023 and 2022, respectively. FPL also collects municipal utility taxes which are reported gross in customer receivables and accounts payable on NEE's and FPL's consolidated balance sheets. Certain NEER commodity contracts for the purchase and sale of power that meet the definition of a derivative are recorded at fair value with subsequent changes in fair value recognized as revenue. See Energy Trading below and Note 3.

Rate Regulation – FPL, the most significant of NEE's rate-regulated subsidiaries, is subject to rate regulation by the FPSC and the Federal Energy Regulatory Commission (FERC). Its rates are designed to recover the cost of providing service to its customers including a reasonable rate of return on invested capital. As a result of this cost-based regulation, FPL follows the accounting guidance that allows regulators to create assets and impose liabilities that would not be recorded by non-rate regulated entities. Regulatory assets and liabilities represent probable future revenues that will be recovered from or refunded to customers through the ratemaking process.

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NEE's and FPL's regulatory assets and liabilities are as follows:

NEEFPL
December 31,December 31,
2024202320242023
(millions)
Regulatory assets:
Current:
Early retirement of generation facilities and transmission assets(a)$162$160$162$160
Deferred clause and franchise expenses(b)981,014981,014
Storm restoration costs1,019(c)351,019(c)35
Other138251126222
Total$1,417$1,460$1,405$1,431
Noncurrent:
Early retirement of generation facilities and transmission assets(a)$2,037$2,166$2,037$2,166
Accrued asset removal costs(d)1,3981,0211,3731,021
Other1,3931,6141,0541,156
Total$4,828$4,801$4,464$4,343
Regulatory liabilities:
Current:
Deferred clause revenues$224$330$224$330
Other5510495
Total$279$340$273$335
Noncurrent:
Asset retirement obligation regulatory expense difference$4,809$4,066$4,809$4,066
Accrued asset removal costs(d)745701698660
Deferred taxes3,5943,8903,4913,786
Other1,4871,3921,4671,381
Total$10,635$10,049$10,465$9,893

(a)The majority of these regulatory assets are being amortized over 20 years.

(b)The majority of these regulatory assets are being amortized over a 21-month period that began April 2023.

(c)The majority of these regulatory assets are being amortized over a 12-month period that began in January 2025. See Storm Funds, Storm Reserves and Storm Cost Recovery below.

(d)See Electric Plant, Depreciation and Amortization below.

Cost recovery clauses, which are designed to permit full recovery of certain costs and provide a return on certain assets allowed to be recovered through various clauses, include substantially all fuel, purchased power and interchange expense, costs associated with an FPSC-approved transmission and distribution storm protection plan, certain costs associated with the acquisition and retirement of several electric generation facilities, certain construction-related costs for certain of FPL's solar generation facilities, and conservation and certain environmental-related costs. Revenues from cost recovery clauses are recorded when billed; FPL achieves matching of costs and related revenues by deferring the net under-recovery or over-recovery. Any under-recovered costs or over-recovered revenues are collected from or returned to customers in subsequent periods.

If FPL were no longer subject to cost-based rate regulation, the existing regulatory assets and liabilities would be written off unless regulators specify an alternative means of recovery or refund. In addition, the FPSC has the authority to disallow recovery of costs that it considers excessive or imprudently incurred. The continued applicability of regulatory accounting is assessed at each reporting period. Regulatory assets and liabilities are discussed within various subsections below.

Base Rates Effective January 2022 through December 2025 – In December 2021, the FPSC issued a final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding (2021 rate agreement).

Key elements of the 2021 rate agreement, which is effective from January 2022 through December 2025, include, among other things, the following:

  • New retail base rates and charges were established resulting in the following increases in annualized retail base revenues:

◦$692 million beginning January 1, 2022, and

◦$560 million beginning January 1, 2023.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

  • In addition, FPL received base rate increases associated with the addition of up to 894 megawatts (MW) annually of new solar generation (through a Solar Base Rate Adjustment (SoBRA) mechanism) in each of 2024 and 2025. FPL's recovery through the SoBRA mechanism was limited to an installed cost cap of $1,250 per kilowatt.

  • FPL's authorized regulatory return on common equity (ROE) was 10.60%, with a range of 9.70% to 11.70%. However, in the event the average 30-year U.S. Treasury rate was 2.49% or greater over a consecutive six-month period, FPL was authorized to increase the regulatory ROE to 10.80% with a range of 9.80% to 11.80%. During August 2022, this provision was triggered and effective September 1, 2022, FPL's authorized regulatory ROE and ROE range were increased. If FPL's earned regulatory ROE falls below 9.80%, FPL may seek retail base rate relief. If the earned regulatory ROE rises above 11.80%, any party with standing may seek a review of FPL's retail base rates.

  • Subject to certain conditions, FPL may amortize, over the term of the 2021 rate agreement, up to $1.45 billion of depreciation reserve surplus, provided that in any year of the 2021 rate agreement FPL must amortize at least enough reserve amount to maintain its minimum authorized regulatory ROE and also may not amortize any reserve amount that would result in an earned regulatory ROE in excess of its maximum authorized regulatory ROE.

  • FPL is authorized to expand SolarTogether®, a voluntary community solar program that gives FPL electric customers an opportunity to participate directly in the expansion of solar energy where participants pay a fixed monthly subscription charge and receive credits on their related monthly customer bill, by constructing an additional 1,788 MW of solar generation from 2022 through 2025, such that the total capacity of SolarTogether® would be 3,278 MW.

  • Future storm restoration costs would be recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $4 for every 1,000 kilowatt-hour (kWh) of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge. See Storm Funds, Storm Reserves and Storm Cost Recovery below.

  • If federal or state permanent corporate income tax changes become effective during the term of the 2021 rate agreement, FPL will prospectively adjust base rates after a review by the FPSC.

In March 2024, the FPSC issued a supplemental final order regarding FPL's 2021 rate agreement. The order affirmed the FPSC's prior approval of the 2021 rate agreement and is intended to further document, as requested by the Florida Supreme Court, how the evidence presented led to and supports the FPSC's decision to approve FPL's 2021 rate agreement. In April 2024, Florida Rising, Inc., Environmental Confederation of Southwest Florida, Inc. and League of United Latin American Citizens of Florida (collectively, the appellants) submitted a notice of appeal to the Florida Supreme Court regarding the FPSC's supplemental final order. The Florida Supreme Court issued an order granting FPL's motion to expedite the schedule. Oral arguments were held in October 2024, and the appeal remains pending.

FPL 2025 Base Rate Proceeding – On December 30, 2024, FPL filed a formal notification with the FPSC indicating its intent to initiate a base rate proceeding by submitting a four-year rate plan that would begin in January 2026 replacing the 2021 rate agreement. The notification states that, based on preliminary estimates, FPL expects to request a general base revenue requirement increase of approximately $1.55 billion effective January 2026 and a subsequent increase of approximately $930 million effective January 2027. The plan is also expected to request authority for a Solar and Battery Base Rate Adjustment mechanism to recover, subject to FPSC review, the revenue requirements associated with building and operating additional solar and battery storage projects in 2028 and 2029. In addition, FPL expects to propose an allowed regulatory ROE midpoint of 11.90% and to incorporate the continued application of FPL's longstanding equity ratio approved in prior base rate cases. FPL expects to file its formal request to initiate a base rate proceeding on or around February 28, 2025.

Electric Plant, Depreciation and Amortization – The cost of additions to units of property of FPL and NEER is added to electric plant in service and other property. In accordance with regulatory accounting, the cost of FPL's and NEER's rate-regulated transmission businesses' units of utility property retired, less estimated net salvage value, is charged to accumulated depreciation. Maintenance and repairs of property as well as replacements and renewals of items determined to be less than units of utility property are charged to other operations and maintenance (O&M) expenses. The American Recovery and Reinvestment Act of 2009, as amended, provided for an option to elect a cash grant (convertible investment tax credits (ITCs)) for certain renewable energy property (renewable property). Convertible ITCs are recorded as a reduction in property, plant and equipment on NEE's and FPL's consolidated balance sheets and are amortized as a reduction to depreciation and amortization expense over the estimated life of the related property. At December 31, 2024 and 2023, convertible ITCs, net of amortization, were approximately $607 million ($100 million at FPL) and $633 million ($106 million at FPL).

Depreciation of FPL's electric property is provided on a straight-line basis, primarily over its average remaining useful life. FPL includes in depreciation expense a provision for electric generation plant dismantlement, interim asset removal costs, accretion related to asset retirement obligations (see Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs below) and storm recovery amortization. For substantially all of FPL's property, depreciation studies are performed periodically and filed with the FPSC which result in updated depreciation rates. Reserve amortization is recorded as either an increase or decrease to accrued asset removal costs which is reflected in noncurrent regulatory assets on NEE's and FPL's consolidated balance sheets. FPL files a twelve-month forecast with the FPSC each year which contains a regulatory ROE intended to be earned based on the best information FPL has at that time assuming normal weather. This forecast establishes a targeted regulatory ROE. In order to earn the targeted regulatory ROE in each reporting period subject to the conditions of the

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

effective rate agreement, reserve amortization is calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items is adjusted, in part, by reserve amortization or its reversal to earn the targeted regulatory ROE. See Rate Regulation – Base Rates Effective January 2022 through December 2025 above.

NEER's electric plant in service and other property less salvage value, if any, are depreciated primarily using the straight-line method over their estimated useful lives. NEER reviews the estimated useful lives of its fixed assets on an ongoing basis. NEER's natural gas and oil production assets are accounted for under the successful efforts method. Depletion expenses for the acquisition of reserve rights and development costs are recognized using the unit of production method. Depreciation of NEER’s rate-regulated transmission assets are provided on a straight-line basis, primarily over their average remaining useful life. NEER includes in depreciation expense a provision for dismantlement, interim asset removal costs and accretion related to asset retirement obligations. For substantially all of NEER’s rate-regulated transmission assets, depreciation studies are performed periodically and filed with FERC which result in updated depreciation rates.

Nuclear Fuel – FPL and NEER have several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel. See Note 15 – Contracts. FPL's and NEER's nuclear fuel costs are charged to fuel expense on a unit of production method.

Construction Activity – Allowance for funds used during construction (AFUDC) is a noncash item which represents the allowed cost of capital, including an ROE, used to finance construction projects. FPL records the portion of AFUDC attributable to borrowed funds as a reduction of interest expense and the remainder as other income. FPSC rules limit the recording of AFUDC to projects that have an estimated cost in excess of 0.4% of a utility's plant in service balance and require more than one year to complete. FPSC rules allow construction projects below the applicable threshold as a component of rate base.

FPL's construction work in progress includes construction materials, progress payments on major equipment contracts, engineering costs, AFUDC and other costs directly associated with the construction of various projects. Upon completion of the projects, these costs are transferred to electric utility plant in service and other property. Capitalized costs associated with construction activities are charged to O&M expenses when recoverability is no longer probable.

NEER capitalizes project development costs once it is probable that such costs will be realized through the ultimate construction of the related asset or sale of development rights. At December 31, 2024 and 2023, NEER's capitalized development costs totaled approximately $1.6 billion and $1.5 billion, respectively, which are included in noncurrent other assets on NEE's consolidated balance sheets. These costs include land rights and other third-party costs directly associated with the development of a new project. Upon commencement of construction, these costs either are transferred to construction work in progress or remain in other assets, depending upon the nature of the cost. Capitalized development costs are charged to O&M expenses when it is probable that these costs will not be realized.

NEER's construction work in progress includes construction materials, progress payments on major equipment contracts, third-party engineering costs, capitalized interest and other costs directly associated with the construction and development of various projects. Interest expense allocated from NextEra Energy Capital Holdings, Inc. (NEECH) to NextEra Energy Resources is based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries. Upon commencement of project operation, costs associated with construction work in progress are transferred to electric plant in service and other property.

Asset Retirement Obligations – NEE and FPL each account for asset retirement obligations and conditional asset retirement obligations (collectively, AROs) under accounting guidance that requires a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated, with the offsetting associated asset retirement costs capitalized as part of the carrying amount of the long-lived assets. 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. See Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs below and Note 11.

For NEE's rate-regulated operations, including FPL, the asset retirement cost is allocated to a regulatory liability or regulatory asset using a systematic and rational method over the asset's estimated useful life. Changes in the ARO resulting from the passage of time are recognized as an increase in the carrying amount of the ARO and a decrease in the regulatory liability or regulatory asset. Changes resulting from revisions to the timing or amount of the original estimate of cash flows are recognized as an increase or a decrease in the ARO and asset retirement cost, or regulatory liability when asset retirement cost is depleted.

For NEE's non-rate regulated operations, the asset retirement cost is allocated to expense using a systematic and rational method over the asset's estimated useful life. Changes in the ARO resulting from the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense, which is included in depreciation and amortization expense in NEE's consolidated statements of income. Changes resulting from revisions to the timing or amount of the original

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

estimate of cash flows are recognized as an increase or a decrease in the ARO and asset retirement cost, or income when asset retirement cost is depleted.

Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs – For ratemaking purposes, FPL accrues for the cost of end of life retirement and disposal of its nuclear and other generation plants over the expected service life of each unit based on nuclear decommissioning and other generation dismantlement studies periodically filed with the FPSC. In addition, FPL accrues for interim removal costs over the life of the related assets based on depreciation studies approved by the FPSC. As approved by the FPSC, FPL previously suspended its annual nuclear decommissioning accrual. Any differences between expense recognized for financial reporting purposes and the amount recovered through rates are reported as a regulatory asset or liability in accordance with regulatory accounting. See Rate Regulation, Electric Plant, Depreciation and Amortization, and Asset Retirement Obligations above and Note 11.

Nuclear decommissioning studies are performed at least every five years and are filed with the FPSC for approval. FPL filed updated nuclear decommissioning studies with the FPSC in December 2020. These studies reflect, among other things, the expiration dates of the operating licenses for FPL's nuclear units at the time of the studies. The 2020 studies provide for the dismantlement of Turkey Point Units Nos. 3 and 4 following the end of plant operation with decommissioning activities commencing in 2052 and 2053, respectively; however, in 2022, the U.S. Nuclear Regulatory Commission (NRC) amended Turkey Point Units Nos. 3 and 4 license renewals by removing the 20 additional years of operation reflected in the studies. FPL filed a site-specific environmental impact statement with the NRC related to the previously approved 20-year renewal application for both Turkey Point operating licenses. Approval of the additional 20 years occurred in September 2024. The studies filed in 2020 also provide for St. Lucie Unit No. 1 to be mothballed beginning in 2036 with decommissioning activities to be integrated with the dismantlement of St. Lucie Unit No. 2 in 2043. These studies also assume that FPL will be storing spent fuel on site pending removal to a United States (U.S.) government facility. FPL's portion of the ultimate costs of decommissioning its four nuclear units, including costs associated with spent fuel storage above what is expected to be refunded by the U.S. Department of Energy (DOE) under a spent fuel settlement agreement, is estimated to be approximately $9.6 billion, or $2.5 billion expressed in 2024 dollars. The ultimate costs of decommissioning reflect the applications submitted to the NRC for the extension of St. Lucie Units Nos. 1 and 2 licenses for an additional 20 years.

Restricted funds for the payment of future expenditures to decommission FPL's nuclear units are included in nuclear decommissioning reserve funds, which are included in special use funds on NEE's and FPL's consolidated balance sheets. Marketable securities held in the decommissioning funds are primarily carried at fair value. See Note 4. Fund earnings, consisting of dividends, interest and realized gains and losses, net of taxes, are reinvested in the funds. Fund earnings, as well as any changes in unrealized gains and losses and estimated credit losses on debt securities, are not recognized in income and are reflected as a corresponding offset in the related regulatory asset or liability accounts. FPL does not currently make contributions to the decommissioning funds, other than the reinvestment of fund earnings. During 2024, 2023 and 2022 fund earnings on decommissioning funds were approximately $238 million, $144 million and $58 million, respectively. The tax effects of amounts not yet recognized for tax purposes are included in deferred income taxes.

Other generation plant dismantlement studies are performed periodically and are submitted to the FPSC for approval. As part of the 2021 rate agreement, the FPSC approved an annual expense of $48 million based on FPL's dismantlement studies which became effective January 1, 2022. At December 31, 2024, FPL's portion of the ultimate cost to dismantle its other generation units is approximately $2.5 billion, or $1.2 billion expressed in 2024 dollars.

NEER's AROs primarily include nuclear decommissioning liabilities for Seabrook Station (Seabrook), Duane Arnold Energy Center (Duane Arnold) and Point Beach Nuclear Power Plant (Point Beach) and dismantlement liabilities for its wind and solar facilities. The liabilities are being accreted using the interest method through the date decommissioning or dismantlement activities are expected to be complete. See Note 11. At December 31, 2024 and 2023, NEER's ARO was approximately $1.4 billion and $1.3 billion, respectively, and was determined using various internal and external data and applying a probability percentage to a variety of scenarios regarding the life of the plant and timing of decommissioning or dismantlement. NEER's portion of the ultimate cost of decommissioning its nuclear plants, including costs associated with spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approximately $9.8 billion, or $2.2 billion expressed in 2024 dollars. The ultimate cost to dismantle NEER's wind and solar facilities is estimated to be approximately $3.6 billion.

Seabrook files a comprehensive nuclear decommissioning study with the New Hampshire Nuclear Decommissioning Financing Committee (NDFC) every four years; the most recent study was filed in 2023. Seabrook's decommissioning funding plan is also subject to annual review by the NDFC. Currently, there are no ongoing decommissioning funding requirements for Seabrook, Duane Arnold and Point Beach, however, the NRC, and in the case of Seabrook, the NDFC, has the authority to require additional funding in the future. NEER's portion of Seabrook's, Duane Arnold's and Point Beach's restricted funds for the payment of future expenditures to decommission these plants is included in nuclear decommissioning reserve funds, which are included in special use funds on NEE's consolidated balance sheets. Marketable securities held in the decommissioning funds are primarily carried at fair value. See Note 4. Market adjustments for debt securities result in a corresponding adjustment to other comprehensive income (OCI), except for estimated credit losses and unrealized losses on debt securities intended or

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

required to be sold prior to recovery of the amortized cost basis, which are recognized in other – net in NEE's consolidated statements of income. Market adjustments for equity securities are recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE's consolidated statements of income. Fund earnings, consisting of dividends, interest and realized gains and losses are recognized in income and are reinvested in the funds. The tax effects of amounts not yet recognized for tax purposes are included in deferred income taxes.

Major Maintenance Costs – FPL expenses costs associated with planned maintenance for its non-nuclear electric generation plants as incurred. FPL recognizes costs associated with planned major nuclear maintenance in accordance with regulatory treatment. FPL defers nuclear maintenance costs for each nuclear unit’s planned outage to a regulatory asset as the costs are incurred. FPL amortizes the costs to O&M expense using the straight-line method over the period from the end of the current outage to the next planned outage where the respective work scope is performed.

NEER uses the deferral method to account for certain planned major maintenance costs. NEER's major maintenance costs for its nuclear generation units, combustion turbines and battery storage are capitalized (included in noncurrent other assets on NEE's consolidated balance sheets) and amortized to O&M expense using the straight-line method over the period from the end of the current outage to the next planned outage where the respective work scope is performed.

Cash Equivalents – Cash equivalents consist of short-term, highly liquid investments with original maturities of generally three months or less.

Restricted Cash – At December 31, 2024 and 2023, NEE had approximately $159 million ($101 million for FPL) and $730 million ($15 million for FPL), respectively, of restricted cash, which, at December 31, 2024, was offset by $244 million of cash received on exchange-traded derivative positions resulting in a balance of $(85) million. Restricted cash accounts are included in current other assets on NEE's and FPL's consolidated balance sheets and primarily relate to debt service payments and margin cash collateral requirements (funding) at NEER and bond proceeds held for construction at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $279 million is netted against derivative assets at December 31, 2024 and $194 million is netted against derivative assets and $815 million is netted against derivative liabilities at December 31, 2023. See Note 3.

Allowance for Doubtful Accounts and Credit Losses – NEE, including FPL, follows the current expected credit loss model to account for credit losses for financial assets measured at amortized cost, which includes customer accounts receivable. FPL maintains an accumulated provision for uncollectible customer accounts receivable that is estimated using a percentage derived from historical revenue and write-off trends, adjusted for current events and forecasts. NEER regularly reviews collectibility of its receivables and establishes a provision for losses estimated as a percentage of accounts receivable based on the historical bad debt write-off trends, adjusted for current events and forecasts. When necessary, NEER uses the specific identification method for all other receivables. NEE's credit department monitors current and forward credit exposure to counterparties and their affiliates using established standards and credit quality indicators such as credit ratings, certain financial ratios and delinquency trends. NEE requires credit enhancements or secured payment terms from customers who do not meet the minimum criteria.

For the years ended December 31, 2024, 2023 and 2022, NEE recorded approximately $52 million, $77 million and $113 million, respectively, of bad debt expense, including credit losses, which are included in O&M expenses in NEE’s consolidated statements of income.

Inventory – FPL values materials, supplies and fuel inventory using a weighted-average cost method. NEER's materials, supplies and fuel inventories, which include emissions allowances and renewable energy credits, are carried at the lower of weighted-average cost and net realizable value, unless evidence indicates that the weighted-average cost will be recovered with a normal profit upon sale in the ordinary course of business.

Energy Trading – NEE provides full energy and capacity requirements services primarily to distribution utilities, which include load-following services and various ancillary services, in certain markets and engages in power and fuel marketing and trading activities to optimize the value of electricity and fuel contracts, generation facilities and natural gas and oil production assets, as well as to take advantage of projected favorable commodity price movements. Trading contracts that meet the definition of a derivative are accounted for at fair value and realized gains and losses from all trading contracts, including those where physical delivery is required, are recorded net for all periods presented. See Note 3.

Storm Funds, Storm Reserves and Storm Cost Recovery – The storm funds provide coverage toward FPL's storm damage costs. Marketable securities held in the storm funds are carried at fair value. See Note 4. Fund earnings, consisting of dividends, interest and realized gains and losses, net of taxes, are reinvested in the funds. Fund earnings, as well as any changes in unrealized gains and losses, are not recognized in income and are reflected as a corresponding adjustment to the storm reserve. The tax effects of amounts not yet recognized for tax purposes are included in deferred income taxes. The storm funds are included in special use funds and the storm reserves in noncurrent regulatory liabilities or, in the case of a deficit, in regulatory assets on NEE's and FPL's consolidated balance sheets.

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In December 2024, the FPSC approved FPL's request to begin a surcharge to recover eligible storm costs and replenish the storm reserve totaling approximately $1.2 billion, related to Hurricanes Debby, Helene and Milton which impacted FPL's service area in 2024. The amount is being collected through an interim surcharge that will apply for a 12-month period that began January 2025 and is subject to refund based on an FPSC prudence review. Recoverable storm costs are recorded as current regulatory assets on NEE's and FPL's consolidated balance sheets. The unpaid portion of the storm restoration costs at December 31, 2024, of approximately $557 million, including estimated capital costs, is included in current other liabilities on NEE’s and FPL’s 2024 consolidated balance sheet.

During 2023, the FPSC approved FPL's request to recover eligible storm costs and replenishment of the storm reserve totaling approximately $1.3 billion primarily related to Hurricanes Ian and Nicole which impacted FPL's service area in 2022. The amount was collected through an interim surcharge for a 12-month period that concluded in March 2024.

Contract Assets – From time to time, NEER enters into agreements to build and sell renewable generation facilities and other assets to third parties. At December 31, 2024 and 2023, contract assets on NEE’s consolidated balance sheets primarily represent costs for such facilities and assets that are expected to be sold in less than 12 months.

Impairment of Long-Lived Assets – NEE evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The impairment loss to be recognized is the amount by which the carrying value of the long-lived asset exceeds the asset's fair value. In most instances, the fair value is determined by discounting estimated future cash flows using an appropriate interest rate.

Impairment of Equity Method Investments – NEE evaluates its equity method investments for impairment when events or changes in circumstances indicate that the fair value of the investment is less than the carrying value and the investment may be other than temporarily impaired (OTTI). An impairment loss is required to be recognized if the impairment is deemed to be other than temporary. Investments that are OTTI are written down to their estimated fair value and cannot subsequently be written back up for increases in estimated fair value. Impairment losses are recorded in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income. See Note 4 – Nonrecurring Fair Value Measurements.

Goodwill and Other Intangible Assets – NEE's goodwill and other intangible assets are as follows:

Weighted- Average Useful LivesDecember 31,
20242023
(years)(millions)
Goodwill (by reporting unit):
FPL segment, primarily rate-regulated utilities$2,965$2,965
NEER segment:
Rate-regulated assets, primarily transmission1,1671,218
Gas infrastructure(a)—487
Clean energy assets424315
Customer supply29995
Corporate and Other1111
Total goodwill$4,866$5,091
Other intangible assets not subject to amortization, primarily land easements$137$136
Other intangible assets subject to amortization:
Purchased power agreements (see Note 6)17$633$988
Biogas rights agreements (see Note 6)28933531
Other, primarily transportation contracts and customer lists19214187
Total1,7801,706
Accumulated amortization(202)(150)
Total other intangible assets subject to amortization – net$1,578$1,556

(a)During the fourth quarter of 2024, as a result of selling ownership interests in certain natural gas and oil shale formations and in certain natural gas pipeline facilities (see Disposal of Businesses/Assets below), NEER reassessed and changed its reporting unit structure to no longer report gas infrastructure as a separate reporting unit.

NEE's, including FPL's, goodwill relates to various acquisitions which were accounted for using the acquisition method of accounting. Other intangible assets are included in noncurrent other assets on NEE's consolidated balance sheets. NEE's other intangible assets subject to amortization are amortized, primarily on a straight-line basis, over their estimated useful lives. Amortization of the other intangible assets was approximately $62 million, $58 million and $18 million for the years ended

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December 31, 2024, 2023 and 2022, respectively, and is expected to be approximately $55 million, $54 million, $50 million, $46 million and $45 million for 2025, 2026, 2027, 2028 and 2029, respectively.

Goodwill and other intangible assets not subject to amortization are assessed for impairment at least annually by applying a fair value-based analysis. Other intangible assets subject to amortization are periodically reviewed when impairment indicators are present to assess recoverability from future operations using undiscounted future cash flows.

Pension Plan – NEE records the service cost component of net periodic benefit income to O&M expense and the non-service cost component to other net periodic benefit income in NEE's consolidated statements of income. NEE allocates net periodic pension income to its subsidiaries based on the pensionable earnings of the subsidiaries' employees. Accounting guidance requires recognition of the funded status of the pension plan in the balance sheet, with changes in the funded status recognized in other comprehensive income within shareholders' equity in the year in which the changes occur. Since NEE is the plan sponsor, and its subsidiaries do not have separate rights to the plan assets or direct obligations to their employees, this accounting guidance is reflected at NEE and not allocated to the subsidiaries. The portion of previously unrecognized actuarial gains and losses and prior service costs or credits that are estimated to be allocable to FPL as net periodic (income) cost in future periods and that otherwise would be recorded in accumulated other comprehensive income (loss) (AOCI) are classified as regulatory assets and liabilities at NEE in accordance with regulatory treatment. See Note 12 – Employee Pension Plan and Other Benefits Plans.

Stock-Based Compensation – NEE accounts for stock-based payment transactions based on grant-date fair value. Compensation costs for awards with graded vesting are recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures of stock-based awards are recognized as they occur. See Note 14 – Stock-Based Compensation.

Retirement of Long-Term Debt – For NEE's rate-regulated subsidiaries, including FPL, gains and losses that result from differences in reacquisition cost and the net book value of long-term debt which is retired are deferred as a regulatory asset or liability and amortized to interest expense ratably over the remaining life of the original issue, which is consistent with their treatment in the ratemaking process. NEE's non-rate regulated subsidiaries recognize such differences in interest expense at the time of retirement.

Structured Payables – Under NEE's structured payables program, subsidiaries of NEE issue negotiable drafts, backed by NEECH guarantees, to settle invoices with suppliers with payment terms (on average approximately 90 days) that extend the original invoice due date (typically 30 days) and include a service fee. At their discretion, the suppliers may assign the negotiable drafts and the rights under the NEECH guarantees to financial institutions. NEE and its subsidiaries are not party to any contractual agreements between their suppliers and the applicable financial institutions.

At December 31, 2024 and 2023, NEE's outstanding obligations under its structured payables program were approximately $4.0 billion and $4.7 billion, respectively, substantially all of which is included in accounts payable on NEE's consolidated balance sheets.

A rollforward of NEE's structured payables is as follows:

December 31,
2024
(millions)
Obligations outstanding at the beginning of the year$4,701
Invoices added to the program6,363
Invoices paid(7,076)
Obligations outstanding at the end of the year$3,988

Income Taxes – Deferred income taxes are recognized on all significant temporary differences between the financial statement and tax bases of assets and liabilities, and are presented as noncurrent on NEE's and FPL's consolidated balance sheets. In connection with the tax sharing agreement between NEE and certain of its subsidiaries, the income tax provision at each applicable subsidiary reflects the use of the "separate return method," except that tax benefits that could not be used on a separate return basis, but are used on the consolidated tax return, are recorded by the applicable subsidiary that generated the tax benefits. Any remaining consolidated income tax benefits or expenses are recorded at the corporate level. Included in other regulatory assets and other regulatory liabilities on NEE's and FPL's consolidated balance sheets is the revenue equivalent of the difference in deferred income taxes computed under accounting rules, as compared to regulatory accounting rules. The net regulatory liability totaled $2,916 million ($2,880 million for FPL) and $3,195 million ($3,145 million for FPL) at December 31, 2024 and 2023, respectively, and is being amortized in accordance with the regulatory treatment over the estimated lives of the assets or liabilities for which the deferred tax amount was initially recognized.

Production tax credits (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 and are recorded as a reduction of current income taxes payable, unless

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limited by tax law in which instance they are recorded as deferred tax assets. NEER recognizes ITCs as a reduction to income tax expense when the related energy property is placed into service. FPL recognizes ITCs as a reduction to income tax expense over the depreciable life of the related energy property. At December 31, 2024 and 2023, FPL’s accumulated deferred ITCs were approximately $966 million and $997 million, respectively, and are included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets. For taxable years beginning after 2022, renewable energy tax credits generated during the taxable year can be transferred to an unrelated purchaser for cash and are accounted for under Accounting Standards Codification 740 – Income Taxes. Proceeds resulting from the sales of renewable energy tax credits for the years ended December 31, 2024 and 2023 of approximately $1,304 million and $370 million, respectively, are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE’s consolidated statements of cash flows.

A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets when it is more likely than not that such assets will not be realized. NEE recognizes interest income (expense) related to unrecognized tax benefits (liabilities) in interest income and interest expense, respectively, net of the amount deferred at FPL. At FPL, the offset to accrued interest receivable (payable) on income taxes is classified as a regulatory liability (regulatory asset) which will be amortized to income (expense) over a five-year period upon settlement in accordance with regulatory treatment. All tax positions taken by NEE in its income tax returns that are recognized in the financial statements must satisfy a more-likely-than-not threshold. NEE and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states, the most significant of which is Florida, and certain foreign jurisdictions. Federal tax liabilities, with the exception of certain refund claims, are effectively settled for all years prior to 2019. State and foreign tax liabilities, which have varied statutes of limitations regarding additional assessments, are generally effectively settled for years prior to 2019. At December 31, 2024, NEE had unrecognized tax benefits of approximately $130 million that, if recognized, could impact the annual effective income tax rate. The amounts of unrecognized tax benefits and related interest accruals may change within the next 12 months; however, NEE and FPL do not expect these changes to have a significant impact on NEE’s or FPL’s financial statements. See Note 5.

Noncontrolling Interests – Noncontrolling interests represent the portions of net assets in consolidated entities that are not owned by NEE and are reported as a component of equity on NEE's consolidated balance sheets. At December 31, 2024, noncontrolling interests on NEE's consolidated balance sheets primarily reflects the interests related to differential membership interests discussed below, as well as other noncontrolling interests in certain wind and solar generation and transmission facilities sold to non-affiliated parties and XPLR Infrastructure Partners, LP (XPLR) (formerly NextEra Energy Partners, LP).

Certain subsidiaries of NextEra Energy Resources have sold Class B noncontrolling membership interests in entities that have ownership interests in wind generation, solar generation and battery storage facilities, with generating/storage capacity in operation or under construction totaling approximately 11,258 MW, 4,084 MW and 1,919 MW, respectively, at December 31, 2024, to third-party investors (differential membership interests). The third-party investors are allocated earnings, tax attributes and cash flows in accordance with the respective limited liability company agreements. Those economics are allocated primarily to the third-party investors until they receive a targeted return (the flip date) and thereafter to NEE. NEE has the right to call the third-party interests at specified amounts if and when the flip date occurs. NEE has determined the allocation of economics between the controlling party and third-party investor should not follow the respective ownership percentages for each wind generation, solar generation and battery storage project but rather the hypothetical liquidation of book value (HLBV) method based on the governing provisions in each respective limited liability company agreement. Under the HLBV method, the amounts of income and loss attributable to the noncontrolling interest reflects changes in the amount the owners would hypothetically receive at each balance sheet date under the respective liquidation provisions, assuming the net assets of these entities were liquidated at the recorded amounts, after taking into account any capital transactions, such as contributions and distributions, between the entities and the owners. At the point in time that the third-party investor, in hypothetical liquidation, would achieve its targeted return, NEE attributes the additional hypothetical proceeds to the differential membership interests based on the call price. A loss attributable to noncontrolling interests on NEE’s consolidated statements of income represents earnings attributable to NEE.

At December 31, 2024 and 2023, approximately $9,062 million and $8,857 million, respectively, of noncontrolling interests on NEE's consolidated balance sheets relates to differential membership interests. For the years ended December 31, 2024, 2023 and 2022, NEE recorded earnings of approximately $1,329 million, $1,135 million and $987 million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests on NEE's consolidated statements of income.

Redeemable Noncontrolling Interests – Certain subsidiaries of NextEra Energy Resources sold Class B noncontrolling membership interests in entities that have ownership interests in wind generation, as well as solar and solar plus battery storage facilities to third-party investors. As specified in the respective limited liability company agreements, if, subject to certain contingencies, certain events occur, including, among others, those that would delay completion or cancel any of the underlying projects, an investor has the option to require NEER to return all or part of its investment. As these potential redemptions were outside of NEER’s control, these balances were classified as redeemable noncontrolling interests on NEE's consolidated balance sheets as of December 31, 2024 and 2023. During 2024, the contingencies associated with the December 31, 2023 balance

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were resolved and reclassified to noncontrolling interests. The contingencies associated with the December 31, 2024 balance are expected to be resolved in 2025.

Variable Interest Entities (VIEs) – An entity is considered to be a VIE when its total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, or its equity investors, as a group, lack the characteristics of having a controlling financial interest. A reporting company is required to consolidate a VIE as its primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. NEE and FPL evaluate whether an entity is a VIE whenever reconsideration events as defined by the accounting guidance occur. See Note 9.

Leases – NEE and FPL determine if an arrangement is a lease at inception. NEE and FPL recognize a right-of-use (ROU) asset and a lease liability for operating and finance leases by recognizing and measuring leases at the commencement date based on the present value of lease payments over the lease term. For sales-type leases, the book value of the leased asset is removed from the balance sheet and a net investment in sales-type lease is recognized based on fixed payments under the contract and the residual value of the asset being leased. NEE and FPL have elected not to apply the recognition requirements to short-term leases and not to separate nonlease components from associated lease components for all classes of underlying assets except for purchased power agreements. ROU assets are included in noncurrent other assets, lease liabilities are included in current and noncurrent other liabilities and net investments in sales-type leases are included in current and noncurrent other assets on NEE’s and FPL's consolidated balance sheets. Operating lease expense is included in O&M or fuel, purchased power and interchange expenses, interest and amortization expenses associated with finance leases are included in interest expense and depreciation and amortization expense, respectively, and rental income associated with operating leases and interest income associated with sales-type leases are included in operating revenues in NEE’s and FPL’s consolidated statements of income. See Note 10.

Disposal of Businesses/Assets – In 2023, FPL sold its ownership interests in its Florida City Gas business for cash proceeds of approximately $924 million. In connection with the sale, a gain of approximately $406 million ($306 million after tax at NEE and $300 million after tax at FPL) was recorded in NEE's and FPL's consolidated statements of income for the year ended December 31, 2023 and is included in gains on disposal of businesses/assets – net.

In September 2024, subsidiaries of NextEra Energy Resources sold 100% ownership interests in certain natural gas and oil shale formations and, as part of a joint venture (pipeline joint venture), sold an ownership interest, representing an approximately 15% economic interest, in three natural gas pipeline facilities located in the southern U.S. for total cash proceeds of approximately $101 million (subject to post-closing adjustments). A NextEra Energy Resources subsidiary has operated and continues to operate two of the pipeline facilities included in the sale. In connection with the sale, a gain of approximately $120 million ($77 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2024 and is included in gains on disposal of businesses/assets – net. Total assets of approximately $2,211 million, primarily property, plant and equipment and investment in equity method investees, and total liabilities of approximately $1,833 million, primarily long-term debt, were removed from NEE's balance sheet and an equity method investment of approximately $396 million was recorded as a result of the transaction. NEE’s remaining interest, an approximately 85% economic interest, in the pipeline joint venture is a noncontrolling interest based on the governance structure of the joint venture. The fair value of NEE’s retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices.

In September 2024, subsidiaries of NextEra Energy Resources sold an ownership interest, representing an approximately 65% economic interest, as part of a joint venture (renewable assets joint venture), consisting of a portfolio of five wind generation facilities and three solar generation facilities located in geographically diverse locations throughout the U.S. with a total generating capacity of 1,634 MW, for cash proceeds of approximately $900 million. A NextEra Energy Resources subsidiary continues to operate the facilities included in the sale. In connection with the sale, a gain of approximately $103 million ($76 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2024 and is included in gains on disposal of businesses/assets – net. Total assets of approximately $2,520 million, primarily property, plant and equipment, and total noncontrolling interests of approximately $844 million were removed from NEE's balance sheet and an equity method investment of approximately $831 million was recorded as a result of the transaction. NEE’s remaining interest, an approximately 35% economic interest, in the renewable assets joint venture is a noncontrolling interest based on the governance structure of the joint venture. Upon the projects in the renewable assets joint venture obtaining financing in the fourth quarter of 2024, NEE received a distribution of approximately $386 million. The fair value of NEE’s retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices.

In 2023, subsidiaries of NextEra Energy Resources sold to an XPLR subsidiary their 100% ownership interests in five wind generation facilities and three solar generation facilities located in geographically diverse locations throughout the U.S. with a

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total generating capacity of 688 MW for cash proceeds of approximately $566 million, plus working capital of $32 million. A NextEra Energy Resources subsidiary continues to operate the facilities included in the sale.

In 2022, subsidiaries of NextEra Energy Resources sold (i) a 49% controlling ownership interest in three wind generation facilities and one solar plus battery facility located in geographically diverse locations throughout the U.S. with a total generating capacity of 1,437 MW and 65 MW of battery storage capacity, two of which facilities were under construction, and (ii) their 100% ownership interest in three wind generation facilities located in the Midwest region of the U.S. with a total generating capacity of 347 MW to an XPLR subsidiary for cash proceeds of approximately $805 million, plus working capital and other adjustments of $8 million. NEER continued to consolidate one of the projects under construction for accounting purposes through March 2023 and the second project under construction through July 2023. A NextEra Energy Resources subsidiary continues to operate the facilities included in the sale. In connection with the sale, a gain of approximately $301 million ($230 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2022 and is included in the gains on disposal of businesses/assets – net. In connection with the two facilities that were under construction, approximately $251 million of cash received was recorded as contract liabilities on NEE's consolidated balance sheet. The contract liabilities related to sale proceeds from XPLR of approximately $150 million and differential membership interests of approximately $101 million. In 2023, the two facilities achieved commercial operations and approximately $251 million of contract liabilities were reversed and the sale of those facilities was recognized for accounting purposes. In addition, NextEra Energy Resources was responsible to pay for all construction costs related to the portfolio. At December 31, 2023, approximately $68 million was included in accounts payable on NEE's consolidated balance sheet and represented amounts owed by NextEra Energy Resources to XPLR to reimburse XPLR for construction costs.

In 2022, subsidiaries of NextEra Energy Resources sold to an XPLR subsidiary a 67% controlling ownership interest in a battery storage facility in California with storage capacity of 230 MW, for cash proceeds of approximately $191 million, plus working capital and other adjustments of $2 million. A NextEra Energy Resources subsidiary continues to operate the facility included in the sale. In connection with the sale, a gain of approximately $87 million ($66 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2022 and is included in gains on disposal of businesses/assets – net.

In 2021, subsidiaries of NextEra Energy Resources sold their 100% ownership interest, comprised of a 50% controlling ownership interest to an XPLR subsidiary and a 50% noncontrolling ownership interest to a third party, in a portfolio of seven wind generation facilities and six solar generation facilities in geographically diverse locations throughout the U.S. representing a total generating capacity of 2,520 MW and 115 MW of battery storage capacity, three of which facilities were under construction. Total cash proceeds for these two separate transactions totaled approximately $1.7 billion. NEER continued to consolidate the three projects under construction for accounting purposes through the first quarter of 2022. A NextEra Energy Resources subsidiary continues to operate the facilities included in the sales. In connection with the three facilities that were under construction, approximately $668 million of cash received was recorded as contract liabilities on NEE’s consolidated balance. Upon the three facilities achieving commercial operations and the resolution of contingencies, the contract liabilities were reversed and the sale of those facilities was recognized for accounting purposes. In addition, a gain of approximately $117 million was recorded in NEE's consolidated statements of income for the year ended December 31, 2022 which is included in gains on disposal of businesses/assets – net.

2. Revenue from Contracts with Customers

Revenue is recognized when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The promised goods or services in the majority of NEE’s contracts with customers is, at FPL, for the delivery of electricity based on tariff rates approved by the FPSC and, at NEER, for the delivery of energy commodities and the availability of electric capacity and electric transmission.

FPL and NEER generate substantially all of NEE’s operating revenues, which primarily include revenues from contracts with customers, as well as derivative (see Note 3) and lease transactions at NEER. For the vast majority of contracts with customers, NEE believes that the obligation to deliver energy, capacity or transmission is satisfied over time as the customer simultaneously receives and consumes benefits as NEE performs. In 2024, 2023 and 2022, NEE’s revenue from contracts with customers was approximately $23.5 billion ($16.9 billion at FPL), $24.8 billion ($18.2 billion at FPL) and $23.0 billion ($17.2 billion at FPL), 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 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.

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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 90% of FPL’s 2024 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 December 31, 2024 and 2023, FPL's unbilled revenues amounted to approximately $573 million and $633 million, respectively, and are included in customer receivables on NEE’s and FPL’s consolidated balance sheets. Certain contracts with customers contain a fixed price with maturity dates through 2054. As of December 31, 2024, FPL expects to record approximately $590 million of revenues related to the fixed price components of such contracts over the remaining terms of the related contracts. Certain of 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.

NEER – NEER’s revenue from contracts with customers is derived primarily from the sale of energy commodities, electric capacity and electric transmission. For these types of sales, NEER recognizes revenue as energy commodities are delivered and as electric capacity and electric transmission are made available, consistent with the amounts billed to customers based on rates stipulated in the respective contracts as well as an accrual for amounts earned but not yet billed. The amounts billed and accrued represent the value of energy or transmission delivered and/or the capacity of energy or transmission available to the customer. Revenues yet to be earned under these contracts, which have maturity dates ranging from 2025 to 2055, will vary based on the volume of energy or transmission delivered and/or available. NEER’s customers typically receive bills monthly with payment due within 30 days. Certain contracts with customers contain a fixed price which primarily relate to electric capacity sales through 2038 and certain power purchase agreements with maturity dates through 2036. At December 31, 2024, NEER expects to record approximately $800 million 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.

3. Derivative Instruments

NEE and FPL use derivative instruments (primarily swaps, options, futures and forwards) to manage the physical and financial risks inherent in the purchase and sale of fuel and electricity, as well as interest rate and foreign currency exchange rate risk associated primarily with outstanding and expected future debt issuances and borrowings, and to optimize the value of NEER's power generation and natural gas and oil production assets. NEE and FPL do not utilize hedge accounting for their cash flow and fair value hedges.

With respect to commodities related to NEE's competitive energy business, NEER employs risk management procedures to conduct its activities related to optimizing the value of its power generation and natural gas and oil production assets, providing full energy and capacity requirements services primarily to distribution utilities, and engaging in power and fuel marketing and trading activities to take advantage of expected future favorable price movements and changes in the expected volatility of prices in the energy markets. These risk management activities involve the use of derivative instruments executed within prescribed limits to manage the risk associated with fluctuating commodity prices. Transactions in derivative instruments are executed on recognized exchanges or via the over-the-counter markets, depending on the most favorable credit terms and market execution factors. For NEER's power generation and natural gas and oil production assets, derivative instruments are used to hedge all or a portion of the expected output of these assets. These hedges are designed to reduce the effect of adverse changes in the wholesale forward commodity markets associated with NEER's power generation and natural gas and oil production assets. With regard to full energy and capacity requirements services, NEER is required to vary the quantity of energy and related services based on the load demands of the customers served. For this type of transaction, derivative instruments are used to hedge the anticipated electricity quantities required to serve these customers and reduce the effect of unfavorable changes in the forward energy markets. Additionally, NEER takes positions in energy markets based on differences between actual forward market levels and management's view of fundamental market conditions, including supply/demand imbalances, changes in traditional flows of energy, changes in short- and long-term weather patterns and anticipated regulatory and legislative outcomes. NEER uses derivative instruments to realize value from these market dislocations, subject to strict risk management limits around market, operational and credit exposure.

Derivative instruments, when required to be marked to market, are recorded on NEE's and FPL's consolidated balance sheets as either an asset or liability measured at fair value. At FPL, substantially all changes in the derivatives' fair value are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel and purchased power cost recovery clause (fuel clause). For NEE's non-rate regulated operations, predominantly NEER, essentially all changes in the derivatives' fair value for power purchases and sales, fuel sales and trading activities are recognized on a net basis in operating revenues and the equity method investees' related activity is recognized in equity in earnings (losses) of equity method investees in NEE's consolidated statements of income. Settlement gains and losses are included within the line items in the consolidated statements of income to which they relate. Transactions for which physical delivery is deemed not to have occurred are presented on a net basis in the consolidated statements of income. For commodity

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derivatives, NEE believes that, where offsetting positions exist at the same location for the same time, the transactions are considered to have been netted and therefore physical delivery has been deemed not to have occurred for financial reporting purposes. Settlements related to derivative instruments are substantially all recognized in net cash provided by operating activities in NEE's and FPL's consolidated statements of cash flows.

For interest rate and foreign currency derivative instruments, all changes in the derivatives' fair value, as well as the transaction gain or loss on foreign denominated debt, are recognized in interest expense and the equity method investees' related activity is recognized in equity in earnings (losses) of equity method investees in NEE's consolidated statements of income. At December 31, 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.

Fair Value Measurements of Derivative Instruments – The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (Level 1) or other pricing inputs that are observable (Level 2) whenever that information is available and using unobservable inputs (Level 3) to estimate fair value only when relevant observable inputs are not available. NEE and FPL use different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or similar assets and liabilities for those assets and liabilities that are measured at fair value on a recurring basis. NEE's and FPL's assessment of the significance of any particular input to the fair value measurement requires judgment and may affect placement within the fair value hierarchy levels. Non-performance risk, including the consideration of a credit valuation adjustment, is also considered in the determination of fair value for all assets and liabilities measured at fair value.

NEE and FPL measure the fair value of commodity contracts using a combination of market and income approaches utilizing prices observed on commodities exchanges and in the non-exchange traded markets, or through the use of industry-standard valuation techniques, such as option modeling or discounted cash flows techniques, incorporating both observable and unobservable valuation inputs. The resulting measurements are the best estimate of fair value as represented by the transfer of the asset or liability through an orderly transaction in the marketplace at the measurement date.

Exchange-traded derivative assets and liabilities are valued using observable settlement prices from the exchanges and are classified as Level 1 or Level 2, depending on whether positions are in active or inactive markets.

NEE, through its subsidiaries, including FPL, also enters into non-exchange traded commodity derivatives. The majority of the valuation inputs are observable using exchange-quoted prices.

NEE, through NEER, also enters into full requirements contracts, which, in most cases, meet the definition of derivatives and are measured at fair value. These contracts typically have one or more inputs that are not observable and are significant to the valuation of the contract. In addition, certain non-exchange traded derivative options at NEE have one or more significant inputs that are not observable, and are valued using industry-standard option models.

In all cases where NEE and FPL use significant unobservable inputs for the valuation of a commodity contract, consideration is given to the assumptions that market participants would use in valuing the asset or liability. The primary input to the valuation models for commodity contracts is the forward commodity curve for the respective instruments. Other inputs include, but are not limited to, assumptions about market liquidity, volatility, correlation and contract duration as more fully described below in Significant Unobservable Inputs Used in Recurring Fair Value Measurements. In instances where the reference markets are deemed to be inactive or do not have transactions for a similar contract, the derivative assets and liabilities may be valued using significant other observable inputs and potentially significant unobservable inputs. In such instances, the valuation for these contracts is established using techniques including extrapolation from or interpolation between actively traded contracts, or estimated basis adjustments from liquid trading points. NEE and FPL regularly evaluate and validate the inputs used to determine fair value by a number of methods, consisting of various market price verification procedures, including the use of pricing services and broker quotes to support the market price of the various commodities. Where there are assumptions and models used to generate inputs for valuing derivative assets and liabilities, the review and verification of the assumptions and models are undertaken by individuals in an independent control function.

NEE uses interest rate contracts and foreign currency contracts to mitigate and adjust interest rate and foreign currency exchange exposure related primarily to certain outstanding and expected future debt issuances and borrowings when deemed appropriate based on market conditions or when required by financing agreements. NEE estimates the fair value of these derivatives using an income approach based on a discounted cash flows valuation technique utilizing the net amount of estimated future cash inflows and outflows related to the agreements.

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The tables below present NEE's and FPL's gross derivative positions at December 31, 2024 and 2023, 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 consolidated balance sheets.

December 31, 2024
Level 1Level 2Level 3Netting**(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 liabilities2,008
Total derivative liabilities$3,081
Net fair value by FPL balance sheet line item:
Current other assets$31
Noncurrent other assets9
Total derivative assets$40
Current other liabilities$3
Noncurrent other liabilities4
Total derivative liabilities$7

(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 $154 million in margin cash collateral received from counterparties.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2023
Level 1Level 2Level 3Netting(a)Total
(millions)
Assets:
NEE:
Commodity contracts$2,640$4,741$1,925$(6,171)$3,135
Interest rate contracts$—$304$—$81385
Foreign currency contracts$—$—$—$——
Total derivative assets$3,520
FPL – commodity contracts$—$1$29$(3)$27
Liabilities:
NEE:
Commodity contracts$3,796$4,664$974$(6,531)$2,903
Interest rate contracts$—$553$—$81634
Foreign currency contracts$—$49$—$—49
Total derivative liabilities$3,586
FPL – commodity contracts$—$13$5$(3)$15
Net fair value by NEE balance sheet line item:
Current derivative assets(b)$1,730
Noncurrent derivative assets(c)1,790
Total derivative assets$3,520
Current derivative liabilities(d)$845
Noncurrent derivative liabilities2,741
Total derivative liabilities$3,586
Net fair value by FPL balance sheet line item:
Current other assets$13
Noncurrent other assets14
Total derivative assets$27
Current other liabilities$9
Noncurrent other liabilities6
Total derivative liabilities$15

(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 $148 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $307 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $815 million in margin cash collateral paid to counterparties.

At December 31, 2024 and 2023, NEE had approximately $47 million ($2 million at FPL) and $78 million ($3 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 consolidated balance sheets. Additionally, at December 31, 2024 and 2023, NEE had approximately $58 million (none at FPL) and $73 million (none 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 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

requirements contracts and some implied volatility curves, are modeled using proprietary models based on historical data and industry standard techniques.

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2024 are as follows:

Transaction TypeFair Value at December 31, 2024Valuation Technique(s)Significant Unobservable InputsRangeWeighted-average(a)
AssetsLiabilities
(millions)
Forward contracts – power$423$401Discounted cash flowForward price (per MWh(b))$(3)—$233$52
Forward contracts – gas29646Discounted cash flowForward price (per MMBtu(c))$1—$16$4
Forward contracts – congestion5339Discounted cash flowForward price (per MWh(b))$(49)—$22$—
Options – power96Option modelsImplied volatilities78%—360%186%
Options – primarily gas100102Option modelsImplied correlations56%—100%99%
Implied volatilities15%—150%52%
Full requirements and unit contingent contracts209203Discounted cash flowForward price (per MWh(b))$20—$297$76
Customer migration rate(d)—%—31%1%
Forward contracts – other249155
Total$1,339$952

(a)Unobservable inputs were weighted by volume.

(b)Megawatt-hours

(c)One million British thermal units

(d)Applies only to full requirements contracts.

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

Significant Unobservable InputPositionImpact on Fair Value Measurement
Forward pricePurchase power/gasIncrease (decrease)
Sell power/gasDecrease (increase)
Implied correlationsPurchase optionDecrease (increase)
Sell optionIncrease (decrease)
Implied volatilitiesPurchase optionIncrease (decrease)
Sell optionDecrease (increase)
Customer migration rateSell power(a)Decrease (increase)

————————————

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

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

Years Ended December 31,
202420232022
NEEFPLNEEFPLNEEFPL
(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year$951$24$(854)$9$170$8
Realized and unrealized gains (losses):
Included in operating revenues339—2,792—(2,343)—
Included in regulatory assets and liabilities49492323158158
Purchases161—412—542—
Settlements(998)(27)(1,521)(11)992(157)
Issuances(128)—(139)—(362)—
Transfers in(a)20(12)(129)1(4)—
Transfers out(a)(7)—3672(7)—
Fair value of net derivatives based on significant unobservable inputs at December 31$387$34$951$24$(854)$9
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date$(25)$—$1,482$—$(1,162)$—

(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.

Income Statement Impact of Derivative Instruments – Gains (losses) related to NEE's derivatives are recorded in NEE's consolidated statements of income as follows:

Years Ended December 31,
202420232022
(millions)
Commodity contracts(a) – operating revenues (including $8 unrealized gains, $2,502 unrealized gains and $2,346 unrealized losses, respectively)$97$2,513$(3,297)
Foreign currency contracts – interest expense (including $58 unrealized losses, $81 unrealized gains and $53 unrealized losses, respectively)(71)(62)(61)
Interest rate contracts – interest expense (including $542 unrealized gains, $634 unrealized losses and $1,021 unrealized gains, respectively)1,349(226)1,221
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts2(1)(5)
Foreign currency contracts(3)(2)(3)
Total$1,374$2,222$(2,145)

(a)For the years ended December 31, 2024, 2023 and 2022, FPL recorded gains of approximately $50 million, $5 million and $211 million, respectively, related to commodity contracts as regulatory liabilities on its 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 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. NEE and FPL had derivative commodity contracts for the following net notional volumes:

December 31, 2024December 31, 2023
Commodity TypeNEEFPLNEEFPL
(millions)
Power(189)MWh—(167)MWh—
Natural gas(1,131)MMBtu503MMBtu(1,452)MMBtu717MMBtu
Oil(25)barrels—(42)barrels—

At December 31, 2024 and 2023, NEE had interest rate contracts with a net notional amount of approximately $35.2 billion and $25.6 billion, respectively, and foreign currency contracts with a notional amount of approximately $1.2 billion and $0.5 billion, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 December 31, 2024 and 2023, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $3.8 billion ($11 million for FPL) and $4.7 billion ($14 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 $500 million (none at FPL) and $510 million (none at FPL) at December 31, 2024 and 2023, respectively. 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 $2.4 billion ($25 million at FPL) and $2.4 billion ($15 million at FPL) at December 31, 2024 and 2023, respectively. 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 $1.4 billion ($70 million at FPL) and $1.7 billion ($50 million at FPL) at December 31, 2024 and 2023, respectively.

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 December 31, 2024 and 2023, applicable NEE subsidiaries have posted approximately $19 million (none at FPL) and $691 million (none at FPL), respectively, in cash and $1,334 million (none at FPL) and $1,595 million (none 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.

4. Non-Derivative Fair Value Measurements

Non-derivative fair value measurements consist of NEE’s and FPL’s cash equivalents and restricted cash equivalents, special use funds and other investments. The fair value of these financial assets is determined by using the valuation techniques and inputs as described in Note 3 – Fair Value Measurements of Derivative Instruments as well as below.

Cash Equivalents and Restricted Cash Equivalents – NEE and FPL hold investments primarily in money market funds. The fair value of these funds is estimated using a market approach based on current observable market prices.

Special Use Funds and Other Investments – NEE and FPL hold primarily debt and equity securities directly, as well as indirectly through commingled funds. Substantially all directly held equity securities are valued at their quoted market prices. For directly held debt securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue of each security. Commingled funds, which are similar to mutual funds, are maintained by banks or investment companies and hold certain investments in accordance with a stated set of objectives. The fair value of commingled funds is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market.

Fair Value Measurement Alternative – NEE holds investments in equity securities without readily determinable fair values, which are initially recorded at cost, of approximately $665 million and $538 million at December 31, 2024 and 2023, respectively, and are included in noncurrent other assets on NEE's 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.

Recurring Non-Derivative Fair Value Measurements – NEE's and FPL's financial assets and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2024
Level 1Level 2Level 3Total
(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities$677$—$—$677
FPL – equity securities$101$—$—$101
Special use funds:(b)
NEE:
Equity securities$2,614$3,321(c)$229$6,164
U.S. Government and municipal bonds$663$59$—$722
Corporate debt securities$5$680$—$685
Asset-backed securities$—$873$—$873
Other debt securities$—$14$—$14
FPL:
Equity securities$1,028$2,987(c)$204$4,219
U.S. Government and municipal bonds$522$39$—$561
Corporate debt securities$4$506$—$510
Asset-backed securities$—$660$—$660
Other debt securities$—$10$—$10
Other investments:(d)
NEE:
Equity securities$48$1$—$49
U.S. Government and municipal bonds$158$3$—$161
Corporate debt securities$—$758$111$869
Other debt securities$—$295$53$348
FPL:
Equity securities$8$—$—$8

(a)Includes restricted cash equivalents of approximately $109 million ($101 million for FPL) in current other assets on the 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 consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2023
Level 1Level 2Level 3Total
(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities$1,972$—$—$1,972
FPL – equity securities$12$—$—$12
Special use funds:(b)
NEE:
Equity securities$2,349$2,742(c)$199$5,290
U.S. Government and municipal bonds$700$57$—$757
Corporate debt securities$3$620$—$623
Asset-backed securities$—$822$—$822
Other debt securities$6$14$—$20
FPL:
Equity securities$863$2,474(c)$199$3,536
U.S. Government and municipal bonds$556$27$—$583
Corporate debt securities$3$455$—$458
Asset-backed securities$—$606$—$606
Other debt securities$5$6$—$11
Other investments:(d)
NEE:
Equity securities$50$—$—$50
U.S. Government and municipal bonds$288$3$—$291
Corporate debt securities$—$408$115$523
Other debt securities$—$196$15$211
FPL:
Equity securities$9$—$—$9

(a)Includes restricted cash equivalents of approximately $34 million ($11 million for FPL) in current other assets on the 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 consolidated balance sheets.

Contingent Consideration – NEER had approximately $124 million and $126 million of contingent consideration liabilities related to acquisitions included in noncurrent other liabilities on NEE's consolidated balance sheets at December 31, 2024 and 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value of Financial Instruments Recorded at Other than Fair Value – The carrying amounts of commercial paper and other short-term debt approximate their fair values. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:

December 31, 2024December 31, 2023
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
(millions)
NEE:
Special use funds(a)$1,342$1,343$1,186$1,187
Other receivables, net of allowances(b)$629$629$777$777
Long-term debt, including current portion$80,446$76,428(c)$68,306$64,103(c)
FPL:
Special use funds(a)$915$916$856$856
Long-term debt, including current portion$26,745$24,718(c)$25,274$23,430(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 $396 million and $567 million is included in current other assets and $233 million and $210 million is included in noncurrent other assets on NEE's consolidated balance sheets at December 31, 2024 and 2023, respectively (primarily Level 3).

(c)At December 31, 2024 and 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 $9,799 million ($6,874 million for FPL) and $8,697 million ($6,049 million for FPL) at December 31, 2024 and 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 $3,720 million ($1,780 million for FPL) and $3,329 million ($1,693 million for FPL) at December 31, 2024 and 2023, respectively. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at December 31, 2024 of approximately nine years at both NEE and FPL. Other investments primarily consist of debt securities with a weighted-average maturity at December 31, 2024 of approximately eight years. The cost of securities sold is determined using the specific identification method.

Unrealized gains (losses) recognized on equity securities held at December 31, 2024, 2023 and 2022 are as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202420232022202420232022
(millions)
Unrealized gains (losses)$917$881$(1,028)$668$598$(677)

Realized gains and losses and proceeds from the sale or maturity of available for sale debt securities are as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202420232022202420232022
(millions)
Realized gains$53$40$30$46$35$24
Realized losses$86$169$141$71$147$111
Proceeds from sale or maturity of securities$2,874$2,380$2,207$2,274$1,921$1,371

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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:

NEEFPL
December 31,December 31,
2024202320242023
(millions)
Unrealized gains$25$41$16$31
Unrealized losses(a)$119$134$61$71
Fair value$2,224$1,862$1,160$872

(a)Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at December 31, 2024 and 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 NDFC 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 XPLR, primarily through its limited partner interest in XPLR Infrastructure Operating Partners, LP (XPLR OpCo), and accounts for this ownership interest as an equity method investment. During the preparation of NEE’s December 31, 2024 financial statements, it was determined that NextEra Energy Resources’ investment in XPLR was OTTI as a result of a significant decline in trading price of XPLR's common units. The impairment reflected NEE’s fair value analysis using the market approach and the observable trading price of XPLR’s common units at December 31, 2024 of $17.80. When making the OTTI determination, NEE considered, among other things, the extent to which the publicly traded unit price was less than cost. Based on the fair value analysis, the equity method investment with a carrying amount of approximately $2.6 billion was written down to its estimated fair value of approximately $1.8 billion, resulting in an impairment charge of $0.8 billion ($0.6 billion after tax), which is recorded in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income for the year ended December 31, 2024. In January 2025, XPLR announced a strategic repositioning, including suspension of the distribution to common unitholders for an indefinite period. This has resulted in the trading price of XPLR's common units to trade below the December 31, 2024 trading price. Should NEE determine, based on future analysis which includes the current and future trading prices of XPLR's common units, that an additional impairment is other-than-temporary, an impairment loss would be recorded, which would impact NEE's consolidated statement of income.

During the preparation of NEE’s September 30, 2023 financial statements, it was determined that NextEra Energy Resources’ investment in XPLR was OTTI as a result of a significant decline in trading price of XPLR's common units during the final three trading days of the third quarter of 2023 following the announcement of a decrease in XPLR’s distribution growth rate expectations. The impairment reflected NEE’s fair value analysis using the market approach and the observable trading price of XPLR’s common units at September 30, 2023 of $29.70. When making the OTTI determination, NEE considered, among other things, the extent to which the publicly traded unit price was less than cost. Based on the fair value analysis, the equity method investment with a carrying amount of approximately $4.2 billion was written down to its estimated fair value of approximately $3.0 billion, resulting in an impairment charge of $1.2 billion ($0.9 billion after tax), which is recorded in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income for the year ended December 31, 2023.

During the first quarter of 2022, NextEra Energy Resources recorded an impairment charge of approximately $0.8 billion ($0.6 billion after tax) related to an investment in Mountain Valley Pipeline, LLC (Mountain Valley Pipeline), which is reflected in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income for the year ended December 31, 2022. The impairment reflected NextEra Energy Resources’ fair value analysis based on the market approach and considered legal and regulatory challenges to the completion of construction and the resulting economic outlook for the pipeline. This impairment charge resulted in the complete write off of NextEra Energy Resources’ equity method investment carrying

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amount as of March 31, 2022 of approximately $0.6 billion, as well as the recording of a liability of approximately $0.2 billion which reflected NextEra Energy Resources’ share of estimated future dismantlement costs.

The Mountain Valley Pipeline fair value estimate was based on a probability-weighted earnings before interest, taxes, depreciation and amortization (EBITDA) multiple valuation technique using a market participant view of the potential different outcomes for the investment. As part of the valuation, NextEra Energy Resources used observable inputs where available, including the EBITDA multiples of recent pipeline transactions. Significant unobservable inputs (Level 3), including the probabilities assigned to the different potential outcomes, the forecasts of operating revenues and costs, and the projected capital expenditures to complete the project, were also used in the estimation of fair value. An increase in the revenue forecasts, a decrease in the projected operating or capital expenditures or an increase in the probability assigned to the full pipeline being completed would result in an increased fair market value. Changes in the opposite direction of those unobservable inputs would result in a decreased fair market value.

5. Income Taxes

The components of income taxes are as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202420232022202420232022
(millions)
Federal:
Current$208$507$11$252$990$3
Deferred(150)368497422(179)684
Total federal58875508674811687
State:
Current126161411162942
Deferred155(30)3718018258
Total state28113178296312260
Total income taxes$339$1,006$586$970$1,123$947

A reconciliation between the effective income tax rates and the applicable statutory rate is as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202420232022202420232022
Statutory federal income tax rate21.0%21.0%21.0%21.0%21.0%21.0%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit3.71.41.64.34.34.4
Taxes attributable to noncontrolling interests4.33.04.9———
Renewable energy tax credits(19.9)(8.3)(6.8)(4.3)(2.0)(1.1)
Amortization of deferred regulatory credit(2.7)(2.5)(4.8)(3.0)(3.2)(4.0)
Other – net(0.8)(0.8)(0.6)(0.4)(0.3)0.1
Effective income tax rate5.6%13.8%15.3%17.6%19.8%20.4%

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The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:

NEEFPL
December 31,December 31,
2024202320242023
(millions)
Deferred tax liabilities:
Property-related$11,558$10,910$9,272$8,563
Pension637609495470
Investments in partnerships and joint ventures2,5342,45933
Other2,1682,1261,4631,431
Total deferred tax liabilities16,89716,10411,23310,467
Deferred tax assets and valuation allowance:
Decommissioning reserves307314331314
Net operating loss carryforwards233262—2
Tax credit carryforwards3,0573,674——
ARO and accrued asset removal costs233227116111
Regulatory liabilities1,1531,2371,1291,212
Other652714219288
Valuation allowance(a)(266)(240)——
Net deferred tax assets5,3696,1881,7951,927
Net deferred income taxes$11,528$9,916$9,438$8,540

(a)Reflects valuation allowances related to deferred state tax credits and state operating loss carryforwards.

Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:

NEEFPL
December 31,December 31,
2024202320242023
(millions)
Noncurrent other assets$221$226$—$2
Deferred income taxes – noncurrent liabilities(11,749)(10,142)(9,438)(8,542)
Net deferred income taxes$(11,528)$(9,916)$(9,438)$(8,540)

The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2024 are as follows:

AmountExpiration Dates
(millions)
Net operating loss carryforwards:
Federal$1Indefinite
State214(a)2025 – 2044
Foreign18(b)2028 – 2044
Net operating loss carryforwards$233
Tax credit carryforwards:
Federal$2,6802036 – 2046
State371(c)2025 – 2044
Foreign62034 – 2044
Tax credit carryforwards$3,057

(a)Includes $78 million of net operating loss carryforwards with an indefinite expiration period.

(b)Includes $1 million of net operating loss carryforwards with an indefinite expiration period.

(c)Includes $192 million of renewable energy tax credit carryforwards with an indefinite expiration period.

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6**. Acquisitions**

RNG Acquisition – On March 21, 2023, a wholly owned subsidiary of NextEra Energy Resources acquired a portfolio of renewable energy projects from the owners of Energy Power Partners Fund I, L.P. and North American Sustainable Energy Fund, L.P., as well as the related service provider (RNG acquisition). The portfolio primarily consisted of 31 biogas projects, one 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 $1.1 billion in cash consideration and the assumption of approximately $34 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 $1.3 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 $0.3 billion and noncontrolling interests of approximately $0.1 billion. The excess of the purchase price over the fair value of assets acquired and liabilities assumed resulted in approximately $0.3 billion of goodwill which has been recognized on NEE's consolidated balance sheets, of which approximately $0.2 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.

7. Property, Plant and Equipment

Property, plant and equipment consists of the following at December 31:

NEEFPL
2024202320242023
(millions)
Electric plant in service and other property$151,677$139,049$87,596$79,801
Nuclear fuel1,6761,5641,1401,125
Construction work in progress21,65818,6527,2148,311
Property, plant and equipment, gross175,011159,26595,95089,237
Accumulated depreciation and amortization(36,159)(33,489)(19,784)(18,629)
Property, plant and equipment – net$138,852$125,776$76,166$70,608

FPL – At December 31, 2024, FPL's gross investment in electric plant in service and other property for the electric generation, transmission, distribution and general facilities of FPL represented approximately 43%, 14%, 36% and 7%, respectively; the respective amounts at December 31, 2023 were 43%, 14%, 36% and 7%. Substantially all of FPL's properties are subject to the lien of FPL's mortgage, which secures most debt securities issued by FPL. The weighted annual composite depreciation and amortization rate for FPL's electric plant in service, including capitalized software, but excluding the effects of decommissioning, dismantlement and the depreciation adjustments discussed in the following sentences, was approximately 3.5%, 3.4% and 3.6% for 2024, 2023 and 2022, respectively. In accordance with the 2021 rate agreement (see Note 1 – Rate Regulation – Base Rates Effective January 2022 through December 2025), FPL recorded reserve amortization in 2024 and 2023 of approximately $328 million and $227 million, respectively. In 2022, FPL recorded a one-time reserve amortization adjustment of approximately $114 million, as required under the 2021 rate agreement, 50% of which was used to reduce the capital recovery regulatory asset balance and the other 50% to increase the storm reserve regulatory liability (see Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery). During 2024, 2023 and 2022, FPL recorded AFUDC of approximately $245 million, $190 million and $136 million, respectively, including the equity component of AFUDC of approximately $189 million, $155 million and $105 million, respectively.

NEER – At December 31, 2024, wind, solar, nuclear and rate-regulated transmission facilities represented approximately 45%, 23%, 6% and 5%, respectively, of NEER's depreciable electric plant in service and other property; the respective amounts at December 31, 2023 were 47%, 18%, 6% and 6%. The estimated useful lives of NEER's plants are primarily 30 to 35 years for wind facilities, 30 to 35 years for solar facilities, 23 to 47 years for nuclear facilities and 40 years for rate-regulated transmission facilities. NEER's natural gas and oil production assets represented approximately 15% and 16% of NEER's depreciable electric plant in service and other property at December 31, 2024 and 2023, respectively. A number of NEER's generation and regulated transmission facilities are encumbered by liens securing various financings. The net book value of NEER's assets serving as collateral was approximately $30.1 billion at December 31, 2024. Interest capitalized on construction projects amounted to approximately $439 million, $310 million and $172 million during 2024, 2023 and 2022, respectively.

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Jointly-Owned Electric Plants – Certain NEE subsidiaries own undivided interests in the jointly-owned facilities described below, and are entitled to a proportionate share of the output from those facilities. The subsidiaries are responsible for their share of the operating costs, as well as providing their own financing. Accordingly, each subsidiary's proportionate share of the facilities and related revenues and expenses is included in the appropriate balance sheet and statement of income captions. NEE's and FPL's respective shares of direct expenses for these facilities are included in fuel, purchased power and interchange expense, O&M expenses, depreciation and amortization expense and taxes other than income taxes and other – net in NEE's and FPL's consolidated statements of income.

NEE's and FPL's proportionate ownership interest in jointly-owned facilities is as follows:

December 31, 2024
Approximate Ownership InterestGross Investment**(a)**Accumulated Depreciation**(a)**Construction Work in Progress
(millions)
FPL:
St. Lucie Unit No. 285%$2,348$1,004$165
Scherer Unit No. 325%$413$194$1
NEER:
Seabrook88%$1,434$556$111
Wyman Station Unit No. 491%$36$15$—
Stanton65%$143$37$2
Transmission substation assets located in Seabrook, New Hampshire88%$168$27$1

(a)Excludes nuclear fuel.

8. Equity Method Investments

At December 31, 2024 and 2023, NEE's equity method investments totaled approximately $6,118 million and $6,156 million, respectively. At December 31, 2024, the principal entities included in investment in equity method investees on NEE's consolidated balance sheet were XPLR, Mountain Valley Pipeline (see Note 4 – Nonrecurring Fair Value Measurements), the renewable assets joint venture (Nitro Renewables Holdings, LLC) (see Note 1 – Disposal of Businesses/Assets), Emerald Breeze Holdings, LLC, the pipeline joint venture (SE Pipeline Holdings, LLC) (see Note 1 – Disposal of Businesses/Assets) and Silver State South Solar, LLC. Principal entities at December 31, 2023 were XPLR, Mountain Valley Pipeline and Sabal Trail Transmission, LLC (see Note 15 – Contracts). As of December 31, 2024, NEE's interest in the principal entities range from approximately 33.3% to 85.0%, and these entities primarily own electric generation facilities or natural gas pipelines.

Summarized combined information for these principal entities is as follows:

20242023
(millions)
Operating revenue$2,121$1,565
Operating income (loss)$(51)$291
Net income(a)$152$839
Total assets$38,929$34,415
Total liabilities$10,641$10,351
Partners'/members' equity(b)$28,288$24,064
NEE's share of underlying equity in the principal entities$6,178$5,168
Difference between investment carrying amount and underlying equity in net assets(c)(1,677)(1,205)
NEE's investment carrying amount for the principal entities$4,501$3,963

(a)In 2023, includes approximately $450 million of income from discontinued operations related to XPLR's sale of natural gas pipelines in December 2023. The income from discontinued operations includes $375 million of net gain on disposal.

(b)Reflects NEE's interest, as well as third-party interests, in XPLR.

(c)In 2024 and 2023, approximately $(2.2) billion and $(2.4) billion, respectively, is associated with Mountain Valley Pipeline, primarily reflecting impairment charges in 2022 and 2020. In addition, approximately $0.3 billion in 2024 and $1.1 billion in 2023 is associated with XPLR. The difference for 2024 reflects the approximately $0.8 billion impairment charge in 2024 related to NextEra Energy Resources' investment in XPLR. See Note 4 – Nonrecurring Fair Value Measurements.

Through XPLR OpCo, XPLR owns, or has a partial ownership interest in, a portfolio of contracted renewable energy assets consisting of wind, solar and battery storage projects as well as a contracted natural gas pipeline. NEE has an approximately

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52.6% noncontrolling interest in XPLR, primarily through its limited partner interest in XPLR OpCo, and accounts for its ownership interest in XPLR as an equity method investment. NextEra Energy Resources operates essentially all of the energy projects owned by XPLR and provides services to XPLR under various related party operations and maintenance, administrative and management services agreements (service agreements). NextEra Energy Resources is also party to a cash sweep and credit support (CSCS) agreement with a subsidiary of XPLR. At December 31, 2024 and 2023, the cash sweep amounts (due to XPLR and its subsidiaries) held in accounts belonging to NextEra Energy Resources or its subsidiaries were approximately $127 million and $1,511 million, respectively, and are included in accounts payable. Fee income related to the CSCS agreement and the service agreements totaled approximately $18 million, $59 million and $174 million for the years ended December 31, 2024, 2023 and 2022, respectively, and is included in operating revenues in NEE's consolidated statements of income. Amounts due from XPLR of approximately $159 million and $84 million are included in other receivables and $128 million and $114 million are included in noncurrent other assets at December 31, 2024 and 2023, respectively. NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $1.3 billion at December 31, 2024 primarily related to obligations on behalf of XPLR's subsidiaries with maturity dates ranging from 2025 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 consolidated balance sheets at fair value. At December 31, 2024, approximately $58 million related to the fair value of the credit support provided under the CSCS agreement is recorded as noncurrent other liabilities on NEE's consolidated balance sheet.

During 2024, 2023 and 2022, 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 $749 million, $656 million and $579 million for the years ended December 31, 2024, 2023 and 2022, respectively.

9. Variable Interest Entities (VIEs)

NEER – At December 31, 2024, NEE consolidates a number of VIEs within the NEER segment. Subsidiaries within the NEER segment are considered the primary beneficiary of these VIEs since they control the most significant activities of these VIEs, including operations and maintenance, and they have the obligation to absorb expected losses of these VIEs.

Eight indirect subsidiaries of NextEra Energy Resources have an ownership interest ranging from approximately 50% to 67% in entities which own and operate solar generation facilities with generating capacity of approximately 765 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 $1,708 million and $520 million, respectively, at December 31, 2024. There were eight of these consolidated VIEs at December 31, 2023 and the assets and liabilities of those VIEs at such date totaled approximately $1,796 million and $1,085 million, respectively. At December 31, 2024 and 2023, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and long-term debt.

NextEra Energy Resources consolidates a VIE which has a 10% direct ownership interest in wind and solar generation facilities which have the capability of producing approximately 400 MW and 599 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 $1,346 million and $76 million, respectively, at December 31, 2024, and $1,434 million and $79 million, respectively, at December 31, 2023. At December 31, 2024 and 2023, the assets of this VIE consisted primarily of property, plant and equipment.

NextEra Energy Resources consolidates 30 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 generating/storage capacity of approximately 10,446 MW, 3,485 MW and 1,719 MW, respectively, and own wind generation and battery storage facilities that, upon completion of construction, which is anticipated in 2025, are expected to have generating/storage capacity of approximately 412 MW and 200 MW, respectively. These entities sell, or will sell, their electric output either under power sales contracts to third parties with expiration dates ranging from 2025 through 2054 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 NextEra Energy Resources for the repayment of debt. The assets and liabilities of these VIEs totaled approximately $23,902 million and $1,546 million, respectively, at December 31, 2024. There were 33 of these consolidated VIEs at December 31, 2023 and the assets and liabilities of those VIEs at such date totaled approximately $24,250 million and $3,148

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million, respectively. At December 31, 2024 and 2023, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and accounts payable.

Other – At December 31, 2024 and 2023, several NEE subsidiaries had investments totaling approximately $5,848 million ($4,506 million at FPL) and $4,962 million ($3,899 million at FPL), respectively, which are included in special use funds and noncurrent other assets on NEE's consolidated balance sheets and in special use funds on FPL's 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 XPLR OpCo (see Note 8). 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 $3,315 million and $3,913 million at December 31, 2024 and 2023, respectively. At December 31, 2024, subsidiaries of NEE had guarantees related to certain obligations of one of these entities, as well as commitments to invest an additional approximately $175 million in several of these entities. See further discussion of such guarantees and commitments in Note 15 – Commitments and – Contracts, respectively.

10. Leases

NEE has operating and finance leases primarily related to land use agreements that convey exclusive use of the land during the arrangement for certain of its renewable energy projects and substations, as well as buildings and equipment. Operating and finance leases primarily have fixed payments with expected expiration dates ranging from 2025 to 2083, with the exception of operating leases related to three land use agreements with an expiration date of 2106, some of which include options to extend the leases up to 34 years and some have options to terminate at NEE's discretion. At December 31, 2024, NEE’s ROU assets and lease liabilities for operating leases totaled approximately $372 million and $387 million, respectively; the respective amounts at December 31, 2023 were $396 million and $412 million. At December 31, 2024, NEE’s ROU assets and lease liabilities for finance leases totaled approximately $826 million and $840 million, respectively; the respective amounts at December 31, 2023 were $440 million and $444 million. NEE’s lease liabilities at December 31, 2024 and 2023 were calculated using a weighted-average incremental borrowing rate at the lease inception of 3.83% and 3.96%, respectively, for operating leases and 4.92% and 4.32%, respectively, for finance leases, and a weighted-average remaining lease term of 44 years and 44 years, respectively, for operating leases and 33 years and 32 years, respectively, for finance leases. At December 31, 2024, expected lease payments over the remaining terms of the leases were approximately $2.6 billion with no one year being material. Operating and finance lease-related amounts were not material to NEE's consolidated statements of income or cash flows for the periods presented.

NEE has operating and sales-type leases primarily related to certain battery storage facilities and a natural gas and oil electric generation facility that sell their electric output under power sales agreements to third parties which provide the customers the ability to dispatch the facilities. At December 31, 2024, the power sales agreements have expiration dates from 2026 to 2044 and NEE expects to receive approximately $3.9 billion of lease payments over the remaining terms of the power sales agreements with no one year being material. Operating and sales-type lease-related amounts were not material to NEE's consolidated statements of income or balance sheets for the periods presented.

11. Asset Retirement Obligations

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.

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A rollforward of NEE's and FPL's AROs is as follows:

NEEFPL
(millions)
Balances, December 31, 2022$3,328$2,176
Liabilities incurred100—
Accretion expense15484
Liabilities settled(90)(a)(66)
Revision in estimated cash flows – net(55)(24)
Balances, December 31, 20233,437(b)2,170(b)
Liabilities incurred15756
Accretion expense16587
Liabilities settled(75)(a)(31)
Revision in estimated cash flows – net1413
Balances, December 31, 2024$3,698(b)$2,295(b)

(a)Includes approximately $39 million and $18 million related to sales of businesses and assets during the years ending December 31, 2024 and 2023, respectively. See Note 1 – Disposal of Businesses/Assets.

(b)Includes the current portion of AROs as of December 31, 2024 and 2023 of approximately $27 million ($19 million for FPL) and $34 million ($27 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). Duane Arnold is in a deferred decommissioning and was granted an exemption from the NRC, which allows for use of the funds for certain other site restoration activities in addition to decommissioning obligations recorded as AROs.

NEEFPL
(millions)
Balances, December 31, 2024$9,799$6,874
Balances, December 31, 2023$8,697$6,049

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.

12. Employee Retirement Benefits

Employee Pension Plan and Other Benefits Plans – NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries. NEE also has a supplemental executive retirement plan (SERP), which includes a non-qualified supplemental defined benefit pension component that provides benefits to a select group of management and highly compensated employees, and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements. The total accrued benefit cost of the SERP and postretirement plans is approximately $212 million ($86 million for FPL) and $231 million ($101 million for FPL) at December 31, 2024 and 2023, respectively.

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Pension Plan Assets, Benefit Obligations and Funded Status – The changes in assets, benefit obligations and the funded status of the pension plan are as follows:

20242023
(millions)
Change in pension plan assets:
Fair value of plan assets at January 1$4,897$4,543
Actual return on plan assets469591
Benefit payments(245)(237)
Fair value of plan assets at December 31$5,121$4,897
Change in pension benefit obligation:
Obligation at January 1$2,785$2,711
Service cost7164
Interest cost131132
Special termination benefit(a)27—
Plan amendments(3)—
Actuarial losses (gains) – net(b)(141)115
Benefit payments(245)(237)
Obligation at December 31(c)$2,625$2,785
Funded status:
Prepaid pension benefit costs at NEE at December 31$2,496$2,112
Prepaid pension benefit costs at FPL at December 31(d)$1,954$1,853

(a)Reflects enhanced early retirement benefit.

(b)Primarily due to the difference in actual versus expected discount rate.

(c)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2024 and 2023 was approximately $2,553 million and $2,719 million, respectively.

(d)Reflects FPL's allocated benefits under NEE's pension plan.

NEE's unrecognized amounts included in accumulated other comprehensive income (loss) yet to be recognized as components of prepaid pension benefit costs are as follows:

20242023
(millions)
Unrecognized prior service benefit (net of $1 tax expense and $1 tax expense, respectively)$1$2
Unrecognized losses (net of $3 tax benefit and $22 tax benefit, respectively)(12)(73)
Total$(11)$(71)

NEE's unrecognized losses included in regulatory assets (liabilities) yet to be recognized as components of net prepaid pension benefit costs were $92 million and $221 million at December 31, 2024 and 2023, respectively.

The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic pension income in the following year.

20242023
Discount rate5.58%4.88%
Salary increase4.90%4.90%
Weighted-average interest crediting rate3.88%3.89%

NEE's investment policy for the pension plan recognizes the benefit of protecting the plan's funded status, thereby avoiding the necessity of future employer contributions. Its broad objectives are to achieve a high rate of total return with a prudent level of risk taking while maintaining sufficient liquidity and diversification to avoid large losses and preserve capital over the long term.

The NEE pension plan fund's current target asset allocation, which is expected to be reached over time, is 43% equity investments, 32% fixed income investments, 20% alternative investments and 5% convertible securities. The pension fund's investment strategy emphasizes traditional investments, broadly diversified across the global equity and fixed income markets, using a combination of different investment styles and vehicles. The pension fund's equity and fixed income holdings consist of both directly held securities as well as commingled investment arrangements such as common and collective trusts, pooled separate accounts, registered investment companies and limited partnerships. The pension fund's convertible security assets are principally direct holdings of convertible securities and include a convertible security oriented limited partnership. The pension

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fund's alternative investments consist primarily of private equity and real estate oriented investments in limited partnerships as well as absolute return oriented limited partnerships that use a broad range of investment strategies on a global basis.

The fair value measurements of NEE's pension plan assets by fair value hierarchy level are as follows:

December 31, 2024**(a)**
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total
(millions)
Equity securities(b)$1,307$3$1$1,311
Equity commingled vehicles(c)—880—880
U.S. Government and municipal bonds2074—211
Corporate debt securities(d)—248—248
Asset-backed securities(e)—453—453
Debt security commingled vehicles—129—129
Convertible securities(f)19262—281
Total investments in the fair value hierarchy$1,533$1,979$13,513
Total investments measured at net asset value(g)1,608
Total fair value of plan assets$5,121
_____________________

(a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs.

(b)Includes foreign investments of $528 million.

(c)Includes foreign investments of $186 million.

(d)Includes foreign investments of $69 million.

(e)Includes foreign investments of $185 million.

(f)Includes foreign investments of $28 million.

(g)Includes foreign investments of $274 million.

December 31, 2023(a)
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total
(millions)
Equity securities(b)$1,444$5$1$1,450
Equity commingled vehicles(c)—754—754
U.S. Government and municipal bonds965—101
Corporate debt securities(d)—252—252
Asset-backed securities(e)—500—500
Debt security commingled vehicles(f)—184—184
Convertible securities(g)8247—255
Other(h)62—8
Total investments in the fair value hierarchy$1,554$1,949$13,504
Total investments measured at net asset value(i)1,393
Total fair value of plan assets$4,897
______________________

(a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs.

(b)Includes foreign investments of $591 million.

(c)Includes foreign investments of $222 million.

(d)Includes foreign investments of $72 million.

(e)Includes foreign investments of $157 million.

(f)Includes foreign investments of $2 million.

(g)Includes foreign investments of $21 million.

(h)Includes foreign investments of $2 million.

(i)Includes foreign investments of $240 million.

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Expected Cash Flows – The following table provides information about benefit payments expected to be paid by the pension plan for each of the following calendar years (in millions):

2025$221
2026$226
2027$217
2028$216
2029$210
2030 – 2034$1,019

Net Periodic (Income) Cost – The components of net periodic (income) cost for the plans are as follows:

Pension BenefitsPostretirement Benefits
202420232022202420232022
(millions)
Service cost$71$64$86$1$1$1
Interest cost13113277995
Expected return on plan assets(405)(392)(363)———
Amortization of actuarial loss—————3
Amortization of prior service benefit——(1)——(4)
Special termination benefit27—52———
Benefit plan settlement——27———
Net periodic (income) cost at NEE$(176)$(196)$(122)$10$10$5
Net periodic (income) cost allocated to FPL$(103)$(127)$(76)$8$8$4

Other Comprehensive Income – The components of net periodic income (cost) recognized in OCI for the pension plan are as follows:

202420232022
(millions)
Prior service benefit (cost) (net of $0 tax expense and $0 tax benefit, respectively)$—$1$(1)
Net gains (losses) (net of $19 tax expense, $7 tax expense and $43 tax benefit, respectively)6023(139)
Amortization of unrecognized losses (net of $2 tax expense)——7
Total$60$24$(133)

Regulatory Assets – The components of net periodic income recognized during the year in regulatory assets for the pension plan are as follows:

20242023
(millions)
Prior service benefit$—$(2)
Unrecognized gains(129)(56)
Total$(129)$(58)

The assumptions used to determine net periodic pension income for the pension plan are as follows:

202420232022
Discount rate4.88%5.05%2.87%
Salary increase4.90%4.90%4.90%
Expected long-term rate of return, net of investment management fees8.00%8.00%7.35%
Weighted-average interest crediting rate3.89%3.82%3.79%

Employee Contribution Plan – NEE offers an employee retirement savings plan which allows eligible participants to contribute a percentage of qualified compensation through payroll deductions. NEE makes matching contributions to participants' accounts. Defined contribution expense pursuant to this plan was approximately $83 million, $78 million and $68 million for NEE ($44 million, $43 million and $41 million for FPL) for the years ended December 31, 2024, 2023 and 2022, respectively.

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13. Debt

Long-term debt consists of the following:

December 31,
20242023
Maturity DateBalanceWeighted- Average Interest RateBalanceWeighted- Average Interest Rate
(millions)(millions)
FPL:
First mortgage bonds – fixed2025-2054$21,9904.41%$19,7904.26%
Pollution control, solid waste disposal and industrial development revenue bonds – variable(a)2027-20541,6632.98%1,3193.75%
Senior unsecured notes – primarily variable(b)(c)2026-20743,1944.30%4,0275.04%
Other long-term debt – primarily fixed2026-20461676.08%3874.74%
Unamortized debt issuance costs and discounts(269)(249)
Total long-term debt of FPL26,74525,274
Less current portion of long-term debt1,7191,665
Long-term debt of FPL, excluding current portion25,02623,609
NEER:
NextEra Energy Resources:
Senior secured limited-recourse long-term debt – variable(c)(d)2026-20358,3996.47%5,9437.53%
Senior secured limited-recourse long-term loans – fixed2029-20491,6675.29%2,3503.45%
Other long-term debt – primarily variable(c)(d)2026-20483,2316.62%1,1837.19%
NEET – long-term debt – primarily fixed(d)2025-20542,0585.35%2,5245.38%
Unamortized debt issuance costs, discounts, and premiums(266)(174)
Total long-term debt of NEER15,08911,826
Less current portion of long-term debt7001,031
Long-term debt of NEER, excluding current portion14,38910,795
NEECH:
Debentures – fixed2025-206224,2804.29%24,3654.06%
Debentures – variable(c)20266005.34%4006.40%
Debentures, related to NEE's equity units – fixed2027-20295,5006.30%2,0004.60%
Junior subordinated debentures – primarily fixed(d)2054-20825,9235.84%3,7235.47%
Canadian dollar denominated long-term debt – fixed(e)20316974.85%——%
Australian dollar denominated long-term debt – fixed(e)20263082.20%3392.20%
Other long-term debt – fixed(e)2025-20301,2102.73%2281.45%
Other long-term debt – variable(c)20273005.44%3006.02%
Unamortized debt issuance costs, discounts, and premiums(206)(149)
Total long-term debt of NEECH38,61231,206
Less current portion of long-term debt5,6424,205
Long-term debt of NEECH, excluding current portion32,97027,001
Total long-term debt$72,385$61,405

(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. At December 31, 2024, these tax exempt bonds totaled approximately $1,663 million. All tax exempt bonds tendered for purchase have been successfully remarketed. FPL's syndicated revolving credit facilities are available to support the purchase of the tax exempt bonds. Variable interest rate is established at various intervals by the remarketing agent.

(b)At December 31, 2024, includes approximately $1,979 million of floating rate notes that permit individual noteholders to require repayment at specified dates prior to maturity. FPL’s syndicated revolving credit facilities are available to support the purchase of the floating rate notes.

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

(d)Interest rate contracts, primarily swaps, have been entered into with respect to certain of these debt issuances. See Note 3.

(e)Foreign currency contracts have been entered into with respect to certain of these debt issuances. See Note 3.

As of December 31, 2024, minimum annual maturities of long-term debt for NEE are approximately $8,064 million, $3,358 million, $11,519 million, $7,357 million and $9,919 million for 2025, 2026, 2027, 2028 and 2029, respectively. The respective amounts for FPL are approximately $1,720 million, $641 million, $328 million, $1,992 million and $948 million.

At December 31, 2024 and 2023, short-term borrowings had a weighted-average interest rate of 4.82% (4.59% for FPL) and 5.62% (5.50% for FPL), respectively. Subsidiaries of NEE, including FPL, had credit facilities with total capacity at December 31, 2024 of approximately $22.3 billion ($4.5 billion for FPL) which provide for the funding of loans and/or issuance of letters of

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credit. At December 31, 2024, letters of credit outstanding under these credit facilities totaled approximately $3.6 billion ($4.0 million for FPL). There were no borrowings outstanding under these facilities at December 31, 2024.

NEE has guaranteed certain payment obligations of NEECH, including most of those under NEECH's debt, including all of its debentures and commercial paper issuances, as well as most of its payment guarantees and indemnifications. NEECH has guaranteed certain debt and other obligations of subsidiaries within the NEER segment.

In August 2022, NEECH completed a remarketing of $1.5 billion aggregate principal amount of its Series J Debentures due September 1, 2024 that were issued in September 2019 as components of equity units issued concurrently by NEE (September 2019 equity units). The debentures were fully and unconditionally guaranteed by NEE. In connection with the remarketing of the debentures, the interest rate on the debentures was reset to 4.255% per year, and interest is payable on March 1 and September 1 of each year, commencing September 1, 2022. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the September 2019 equity units, on September 1, 2022, NEE issued approximately 21.6 million shares of common stock in exchange for $1.5 billion.

In March 2023, NEECH completed a remarketing of $2.5 billion aggregate principal amount of its Series K Debentures due March 1, 2025 that were issued in February 2020 as components of equity units issued concurrently by NEE (February 2020 equity units). The debentures are fully and unconditionally guaranteed by NEE. In connection with the remarketing of the debentures, the interest rate on the debentures was reset to 6.051% per year, and interest is payable on March 1 and September 1 of each year, commencing September 1, 2023. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the February 2020 equity units, on March 1, 2023, NEE issued approximately 33.4 million shares of common stock in exchange for $2.5 billion.

In August 2023, NEECH completed a remarketing of $2.0 billion aggregate principal amount of its Series L Debentures due September 1, 2025 that were issued in September 2020 as components of equity units issued concurrently by NEE (September 2020 equity units). The debentures are fully and unconditionally guaranteed by NEE. In connection with the remarketing of the debentures, the interest rate on the debentures was reset to 5.749% per year, and interest is payable on March 1 and September 1 of each year, commencing September 1, 2023. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the September 2020 equity units, on September 1, 2023, NEE issued approximately 27.3 million shares of common stock in exchange for $2.0 billion.

In March 2024, NEECH issued $1.0 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 December 31, 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 $68.06 per share of NEE common stock.

NEECH used $52 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 $68.06 and an initial cap price of $83.34 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 September 2022, NEE sold $2.0 billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series M Debenture due September 1, 2027, issued in the principal amount of $1,000 by NEECH. Each stock purchase contract requires the holder to purchase by no later than September 1, 2025 (the final settlement date) for a price of $50 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 December 31, 2024, the number of shares issued per equity unit would (subject to antidilution adjustments) range from 0.5670 shares if the applicable market value of a share of NEE common stock is less than or equal to $88.88 (the reference price) to 0.4534 shares if the applicable market value of a share is equal to or greater than $111.10 (the threshold appreciation price), with the applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending August 27, 2025. Total annual distributions on the equity units are at the rate of 6.926%, consisting of interest on the debentures (4.60% per year) and payments under the stock purchase contracts (2.326% per year). The interest rate on the debentures is expected to be reset on or after March 1, 2025. 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

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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.

In June 2024, NEE sold $2.0 billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% 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 $50 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 December 31, 2024, the number of shares issued per equity unit would (subject to antidilution adjustments) range from 0.6915 shares if the applicable market value of a share of NEE common stock is less than or equal to $72.31 (the reference price) to 0.5532 shares if the applicable market value of a share is equal to or greater than $90.38 (the threshold appreciation price), with the applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending on May 26, 2027. Total annual distributions on the equity units are at the rate of 7.299%, consisting of interest on the debentures (5.15% per year) and payments under the stock purchase contracts (2.149% 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.

In October 2024, NEE sold $1.5 billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series O Debenture due November 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 November 1, 2027 (the final settlement date) for a price of $50 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 December 31, 2024, the number of shares issued per equity unit would (subject to antidilution adjustments) range from 0.6034 shares if the applicable market value of a share of NEE common stock is less than or equal to $82.87 (the reference price) to 0.4827 shares if the applicable market value of a share is equal to or greater than $103.58 (the threshold appreciation price), with the applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending on October 27, 2027. Total annual distributions on the equity units are at the rate of 7.234%, consisting of interest on the debentures (4.635% per year) and payments under the stock purchase contracts (2.599% per year). The interest rate on the debentures is expected to be reset on or after May 1, 2027. 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.

Prior to the issuance of NEE’s common stock, the stock purchase contracts, if dilutive, will be reflected in NEE’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of NEE common stock used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that would be issued upon settlement of the stock purchase contracts over the number of shares that could be purchased by NEE in the market, at the average market price during the period, using the proceeds receivable upon settlement.

On February 4, 2025, NEECH sold a total of $4.5 billion principal amount of its fixed-rate debentures, with interest rates ranging from 4.85% to 5.90% and maturity dates ranging from 2028 to 2055, and $500 million of its floating-rate debentures due in 2028.

On February 6, 2025, NEECH sold $1.5 billion principal amount of its Series S Junior Subordinated Debentures due August 15, 2055 and $1.0 billion principal amount of its Series T Junior Subordinated Debentures due August 15, 2055, bearing interest at a rate of 6.375% to August 15, 2030 and 6.50% to August 15, 2035, respectively, and thereafter will bear interest based on an underlying index plus a specified margin, reset every five years, provided that the interest rate will not be lower than the respective initial interest rate.

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14. Equity

Earnings Per Share – The reconciliation of NEE's basic and diluted earnings per share attributable to NEE is as follows:

Years Ended December 31,
202420232022
(millions, except per share amounts)
Numerator – net income attributable to NEE$6,946$7,310$4,147
Denominator:
Weighted-average number of common shares outstanding – basic2,052.92,026.11,972.6
Equity units, stock options, performance share awards, restricted stock and exchangeable notes(a)6.34.76.0
Weighted-average number of common shares outstanding – assuming dilution2,059.22,030.81,978.6
Earnings per share attributable to NEE:
Basic$3.38$3.61$2.10
Assuming dilution$3.37$3.60$2.10

(a)Calculated primarily 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, performance share awards and/or exchangeable notes, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were approximately 33.9 million, 39.1 million and 38.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Common Stock Dividend Restrictions – NEE's charter does not limit the dividends that may be paid on its common stock. FPL's mortgage securing FPL's first mortgage bonds contains provisions which, under certain conditions, restrict the payment of dividends and other distributions to NEE. These restrictions do not currently limit FPL's ability to pay dividends to NEE.

Stock-Based Compensation – Net income for the years ended December 31, 2024, 2023 and 2022 includes approximately $138 million, $139 million and $142 million, respectively, of compensation costs and $29 million, $26 million and $20 million, respectively, of income tax benefits related to stock-based compensation arrangements. Compensation cost capitalized for the years ended December 31, 2024, 2023 and 2022 was not material. At December 31, 2024, there were approximately $207 million of unrecognized compensation costs related to nonvested/nonexercisable stock-based compensation arrangements. These costs are expected to be recognized over a weighted-average period of 2.0 years.

At December 31, 2024, approximately 68 million shares of common stock were authorized for awards to officers, employees and non-employee directors of NEE and its subsidiaries under NEE's: (a) 2021 Long Term Incentive Plan, (b) 2017 Non-Employee Directors Stock Plan and (c) earlier equity compensation plans under which shares are reserved for issuance under existing grants, but no additional shares are available for grant under the earlier plans. NEE satisfies restricted stock and performance share awards by issuing new shares of its common stock or by purchasing shares of its common stock in the open market. NEE satisfies stock option exercises by issuing new shares of its common stock. NEE generally grants most of its stock-based compensation awards in the first quarter of each year.

Restricted Stock and Performance Share Awards – Restricted stock typically vests within three years after the date of grant and is subject to, among other things, restrictions on transferability prior to vesting. The fair value of restricted stock is measured based upon the closing market price of NEE common stock as of the date of grant. Performance share awards are typically payable at the end of a three-year performance period if the specified performance criteria are met. The fair value for the majority of performance share awards is estimated based upon the closing market price of NEE common stock as of the date of grant less the present value of expected dividends, multiplied by an estimated performance multiple which is subsequently trued up based on actual performance.

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The activity in restricted stock and performance share awards for the year ended December 31, 2024 was as follows:

Shares/UnitsWeighted- Average Grant Date Fair Value Per Share/Units
Restricted Stock:
Nonvested balance, January 1, 20242,661,237$75.93
Granted1,647,461$61.78
Vested(924,575)$74.17
Forfeited(220,348)$87.19
Nonvested balance, December 31, 20243,163,775$68.44
Performance Share Awards:
Nonvested balance, January 1, 20241,387,253$71.27
Granted1,230,737$63.23
Vested(647,038)$79.28
Forfeited(126,224)$63.46
Nonvested balance, December 31, 20241,844,728$61.48

The weighted-average grant date fair value per share of restricted stock granted for the years ended December 31, 2023 and 2022 was $72.24 and $75.13, respectively. The weighted-average grant date fair value per share of performance share awards granted for the years ended December 31, 2023 and 2022 was $71.79 and $58.67, respectively.

The total fair value of restricted stock and performance share awards vested was $106 million, $106 million and $175 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Options – Options typically vest within three years after the date of grant and have a maximum term of ten years. The exercise price of each option granted equals the closing market price of NEE common stock on the date of grant. The fair value of the options is estimated on the date of the grant using the Black-Scholes option-pricing model and based on the following assumptions:

202420232022
Expected volatility(a)21.34 – 22.09%19.72 – 20.57%17.91 – 19.37%
Expected dividends2.55 – 3.02%2.45 – 2.86%2.32 – 2.50%
Expected term (years)(b)6.66.66.5
Risk-free rate3.79 – 4.43%3.50 – 4.50%1.91 – 3.85%

(a)Based on historical experience.

(b)Based on historical exercise and post-vesting cancellation experience adjusted for outstanding awards.

Option activity for the year ended December 31, 2024 was as follows:

Shares Underlying OptionsWeighted- Average Exercise Price Per ShareWeighted- Average Remaining Contractual Term (years)Aggregate Intrinsic Value (millions)
Balance, January 1, 202410,983,132$52.78
Granted1,265,263$58.05
Exercised(1,555,235)$30.53
Forfeited(95,814)$64.47
Expired(16,181)$74.40
Balance, December 31, 202410,581,165$56.545.2$181
Exercisable, December 31, 20248,411,495$54.184.3$165

The weighted-average grant date fair value of options granted was $11.62, $14.46 and $10.49 per share for the years ended December 31, 2024, 2023 and 2022, respectively. The total intrinsic value of stock options exercised was approximately $68 million, $22 million and $37 million for the years ended December 31, 2024, 2023 and 2022, respectively.

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Cash received from option exercises was approximately $47 million, $14 million and $14 million for the years ended December 31, 2024, 2023 and 2022, respectively. The tax benefits realized from options exercised were approximately $16 million, $5 million and $9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Preferred Stock – NEE's charter authorizes the issuance of 100 million shares of serial preferred stock, $0.01 par value, none of which are outstanding. FPL's charter authorizes the issuance of 10,414,100 shares of preferred stock, $100 par value, 5 million shares of subordinated preferred stock, no par value, and 5 million shares of preferred stock, no par value, none of which are outstanding.

Accumulated Other Comprehensive Income (Loss) – The components of AOCI, net of tax, are as follows:

Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gains on Cash Flow HedgesNet Unrealized Gains (Losses) on Available for Sale SecuritiesDefined Benefit Pension and Other Benefits PlansNet Unrealized Gains (Losses) on Foreign Currency TranslationOther Comprehensive Income Related to Equity Method InvesteesTotal
(millions)
Balances, December 31, 2021$14$5$25$(49)$5$—
Other comprehensive income (loss) before reclassifications—(84)(133)(44)1(260)
Amounts reclassified from AOCI6(a)10(b)7(c)——23
Net other comprehensive income (loss)6(74)(126)(44)1(237)
Less other comprehensive loss attributable to noncontrolling interests———19—19
Balances, December 31, 202220(69)(101)(74)6(218)
Other comprehensive income before reclassifications—172113152
Amounts reclassified from AOCI2(a)13(b)1(c)——16
Net other comprehensive income2302213168
Less other comprehensive income attributable to noncontrolling interests———(3)—(3)
Balances, December 31, 202322(39)(79)(64)7(153)
Other comprehensive income (loss) before reclassifications—(3)60(27)131
Amounts reclassified from AOCI1(a)5(b)———6
Net other comprehensive income (loss)1260(27)137
Less other comprehensive income attributable to noncontrolling interests———(10)—(10)
Balances, December 31, 2024$23$(37)$(19)$(101)$8$(126)
Attributable to noncontrolling interests$—$—$—$—$—$—

(a)Reclassified to interest expense in NEE's consolidated statements of income. See Note 3 – Income Statement Impact of Derivative Instruments.

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

(c)Reclassified to other net periodic benefit income in NEE's consolidated statements of income.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

15. Commitments and Contingencies

Commitments – NEE and its subsidiaries have made commitments in connection with a portion of their projected capital expenditures. Capital expenditures at FPL include, among other things, the cost for construction of additional facilities and equipment to meet customer demand, as well as capital improvements to and maintenance of existing facilities. At NEER, capital expenditures include, among other things, the cost, including capitalized interest, for development, construction and maintenance of its competitive energy businesses. Also see Note 4 – Contingent Consideration.

At December 31, 2024, estimated capital expenditures, on an accrual basis, for 2025 through 2029 were as follows:

20252026202720282029Total
(millions)
FPL:
Generation:(a)
New(b)$2,185$3,925$3,385$3,385$3,510$16,390
Existing9451,1601,3251,2751,2755,980
Transmission and distribution(c)4,3104,2554,0804,3254,71021,680
Nuclear fuel2053003053953751,580
General and other7808808107907153,975
Total$8,425$10,520$9,905$10,170$10,585$49,605
NEER:(d)
Wind(e)$1,380$1,525$85$55$—$3,045
Solar(f)4,8653,3501,360105459,725
Other clean energy(g)2,8101,0701,325270—5,475
Nuclear, including nuclear fuel4253603853403851,895
Rate-regulated transmission(h)1,1309304604805453,545
Other4352502252202201,350
Total$11,045$7,485$3,840$1,470$1,195$25,035

(a)Includes AFUDC of approximately $115 million, $170 million, $180 million, $175 million and $160 million for 2025 through 2029, respectively.

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

(c)Includes AFUDC of approximately $80 million, $80 million, $75 million, $110 million and $140 million for 2025 through 2029, 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 2,228 MW, and related transmission.

(f)Includes capital expenditures for new solar projects (including solar plus battery storage projects) totaling approximately 8,205 MW and related transmission.

(g)Includes capital expenditures primarily for battery storage projects totaling approximately 4,265 MW and related transmission, as well as natural gas pipelines and renewable fuels projects.

(h)Includes AFUDC of approximately $10 million, $10 million, $20 million, $10 million and $10 million for 2025 through 2029, 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 8 with regards to XPLR, 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 $705 million at December 31, 2024. These obligations primarily related to guaranteeing the residual value of certain financing leases and obligations under purchased power agreements. 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 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 December 31, 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 $3.2 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 2041.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The required capacity and/or minimum payments under contracts, including those discussed above at December 31, 2024, were estimated as follows:

20252026202720282029Thereafter
(millions)
FPL(a)$1,155$1,145$1,115$1,080$1,050$7,165
NEER(b)(c)$3,945$815$250$120$70$370

(a)Includes approximately $405 million, $400 million, $400 million, $400 million, $395 million and $4,765 million in 2025 through 2029 and thereafter, respectively, of firm commitments related to natural gas transportation agreements with affiliates. The charges associated with these agreements are recoverable through the fuel clause and totaled approximately $409 million, $417 million and $418 million for the years ended December 31, 2024, 2023 and 2022, respectively, of which $73 million, $99 million and $102 million, respectively, were eliminated in consolidation at NEE.

(b)Includes approximately $175 million of commitments to invest in technology and other investments through 2031. See Note 9 – Other.

(c)Includes approximately $870 million and $40 million for 2025 and 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 $500 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 $100 million private liability insurance limit. Each site, except Duane Arnold, participates in a secondary financial protection system, which provides up to $15.8 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 $1,161 million ($664 million for FPL), plus any applicable taxes, per incident at any nuclear reactor in the U.S., payable at a rate not to exceed $173 million ($99 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 $20 million and $25 million, plus any applicable taxes, per incident, respectively.

NEE participates in a nuclear insurance mutual company, Nuclear Electric Insurance Limited (NEIL), which provides property damage, nuclear accident decontamination and premature decommissioning insurance for each plant for losses resulting from damage to its nuclear facilities, either due to accidents or acts of terrorism. Additionally, NEIL provides accidental outage coverage for losses in the event of a major accidental outage at an insured nuclear plant. Pursuant to regulations of the NRC, each company’s property damage insurance policies provide that all proceeds from such insurance be applied first to place the plant in a safe and stable condition after a qualifying accident, and second, to decontaminate the plant before any proceeds can be used for decommissioning, plant repair or restoration.

NEE and FPL nuclear facilities each have accident property damage, nuclear accident decontamination and premature decommissioning liability insurance from NEIL with limits of $1.5 billion, except for Duane Arnold which has a limit of $50 million due to being in a deferred decommissioning. All the nuclear facilities, except for Duane Arnold, also share an additional $1.25 billion nuclear accident insurance limit above their dedicated underlying limit. This shared additional excess limit is not subject to reinstatement in the event of a loss. All coverages are subject to sublimits and deductibles.

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 $167 million ($104 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 $3 million, $2 million and $4 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. See Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Legal Proceedings – FPL is the defendant in a purported class action lawsuit filed in the Miami-Dade County Circuit Court in February 2018 that seeks from FPL unspecified damages for alleged breach of contract and gross negligence based on service interruptions that occurred as a result of Hurricane Irma in 2017. A class previously had been certified that encompassed all persons and business owners who reside in and are otherwise citizens of the state of Florida that contracted with FPL for electrical services, were charged storm charges, experienced a power outage after Hurricane Irma and suffered consequential damages because of FPL’s alleged breach of contract or gross negligence. Florida's Third District Court of Appeal (3rd DCA) reconsidered and revoked its previous order approving certification of the class and remanded and stayed the case unless and until the plaintiffs take action at the FPSC regarding FPL's actions during Hurricane Irma. In December 2024, the Florida Supreme Court denied the plaintiffs' request to review the 3rd DCA's order.

NEE, FPL, and certain current and former executives, are the named defendants in a purported shareholder securities class action lawsuit filed in the U.S. District Court for the Southern District of Florida in June 2023 and amended in December 2023 that seeks from the defendants unspecified damages allegedly resulting from alleged false or misleading statements regarding NEE's alleged campaign finance and other political activities. The alleged class of plaintiffs are all persons or entities who purchased or otherwise acquired NEE securities between December 2, 2021 and January 30, 2023. In September 2024, the class action lawsuit was dismissed with prejudice by the U.S. District Court for the Southern District of Florida. In October 2024, the lead plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the 11th Circuit. NEE is vigorously defending against the claims in this proceeding.

NEE, along with certain current and former executives and directors are the named defendants in purported shareholder derivative actions filed in the 15th Judicial Circuit in Palm Beach County, Florida in July 2023 and March 2024, in the U.S. District Court for the Southern District of Florida in October 2023 and November 2023 (which were consolidated in January 2024) and in the U.S. District Court for the Southern District of Florida in July 2024 seeking unspecified damages allegedly resulting from, among other things, breaches of fiduciary duties and, in the consolidated cases and the July 2024 case, violations of the federal securities laws, all purporting to relate to alleged campaign finance law violations and associated matters. The defendants are vigorously defending against the claims in these proceedings. NEE and the plaintiffs in the derivative actions have agreed to a specified stay. NEE also has received demand letters and books and records requests from counsel representing other purported shareholders and containing similar allegations. These demands seek, among other things, a Board of Directors investigation of, and/or documentation regarding, these allegations. NEE and certain of the shareholders demanding an investigation have agreed to a specified stay of all material activities related to the demand.

In September 2023, a participant in the NEE Employee Retirement Savings Plan (Plan), purportedly on behalf of the Plan and all persons who were participants in or beneficiaries of the Plan, at any time between September 25, 2016 and September 25, 2023 (Plan participants), filed a putative ERISA class action lawsuit in the U.S. District Court for the Southern District of Florida against NEE. The complaint alleges that NEE violated its fiduciary duties under the Plan by permitting a third-party administrative recordkeeper to charge allegedly excessive fees for the services provided and allegedly by allowing a large volume of plan assets to be invested in NEE common stock. The plaintiff seeks declaratory, equitable and monetary relief on behalf of the Plan and Plan participants. NEE and the plaintiff have agreed to a specified stay of the action to permit the plaintiff to exhaust the administrative remedies available under the Plan.

In November 2024, NEE was named as defendant in an antitrust lawsuit (Avangrid, Inc. et al. v. NextEra Energy, Inc.) filed in the U.S. District Court for the District of Massachusetts. This lawsuit seeks damages of $350 million, which are tripled in the event of a finding of monopolization under the Sherman Act, from the defendants for alleged violations of federal and state antitrust laws, as well as Massachusetts state laws. In January 2025, NEE filed a motion to dismiss and a motion to transfer venue. NEE does not believe that it should have any liability with respect to the claims in this matter.

16. Segment Information

Effective January 1, 2024, NEE and FPL adopted an accounting standards update that provides guidance on segment reporting and requires additional disclosures related to significant segment expenses and increases the frequency of segment reporting to interim periods (updated segment standard). NEE and FPL adopted the updated segment standard using the full retrospective approach, which changed the presentation of the segment information below.

The tables below present information for NEE's two 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. FPL has a single reportable segment. See Note 2 for information regarding NEE's and FPL's operating revenues.

NEE's and FPL's chief operating decision maker (CODM) is NEE's chief executive officer. The CODM makes key operating decisions and evaluates the reportable segment's operating results, including net income attributable to NEE, for financial planning, analysis of performance and resource allocation.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Net income attributable to NEE and significant expenses for NEE's reportable segments and the FPL reportable segment are shown below.

December 31, 2024
FPLNEERTotal
(millions)
Operating revenues$17,019$7,542$24,561
Corporate and Other192
Total consolidated revenues$24,753
Less:
Fuel, purchased power and interchange4,188914
Other operations and maintenance1,6092,776
Depreciation and amortization2,8272,577
Taxes other than income taxes and other – net1,904371
Interest expense1,1781,114(a)
Income tax expense (benefit)(b)970(655)
Other segment items(c)2001,854
Net income attributable to NEE for reportable segments4,5432,2996,842
Reconciliation of segment profit/(loss)
Corporate and Other104
Net income attributable to NEE$4,543$2,299$6,946

(a)Interest expense allocated from NEECH to NextEra Energy Resources is based on a deemed capital structure of 70% 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 the tax sharing agreement with NEE. See Note 1 – Income Taxes.

(c)Other segment items for each reportable segment include:

FPL – Gains on disposal of businesses/assets – net, allowance for equity funds used during construction and other – net

NEER – Gains on disposal of businesses/assets – net, equity in losses of equity method investees, allowance for equity funds used during construction, gains on disposal of investments and other property – net, change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net, other – net and net loss attributable to noncontrolling interests

December 31, 2023
FPLNEERTotal
(millions)
Operating revenues$18,365$9,672$28,037
Corporate and Other77
Total consolidated revenues$28,114
Less:
Fuel, purchased power and interchange4,761795
Other operations and maintenance1,6662,601
Depreciation and amortization3,7892,009
Taxes other than income taxes and other – net1,959301
Interest expense1,1141,129(a)
Income tax expense (benefit)(b)1,123177
Other segment items(c)599898
Net income attributable to NEE for reportable segments4,5523,5588,110
Reconciliation of segment profit/(loss)
Corporate and Other(800)
Net income attributable to NEE$4,552$3,558$7,310

(a)Interest expense allocated from NEECH to NextEra Energy Resources is based on a deemed capital structure of 70% 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 the tax sharing agreement with NEE. See Note 1 – Income Taxes.

(c)Other segment items for each reportable segment include:

FPL – Gains on disposal of businesses/assets – net, allowance for equity funds used during construction and other – net

NEER – Losses on disposal of businesses/assets – net, equity in losses of equity method investees, allowance for equity funds used during construction, gains on disposal of investments and other property – net, change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net, other – net and net loss attributable to noncontrolling interests

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2022
FPLNEERTotal
(millions)
Operating revenues$17,282$3,720$21,002
Corporate and Other(46)
Total consolidated revenues20,956
Less:
Fuel, purchased power and interchange5,688836
Other operations and maintenance1,8572,259
Depreciation and amortization2,6951,722
Taxes other than income taxes and other – net1,752323
Interest expense768128(a)
Income tax expense (benefit)(b)947(391)
Other segment items(c)1261,442
Net income attributable to NEE for reportable segments3,7012853,986
Reconciliation of segment profit/(loss)
Corporate and Other161
Net income attributable to NEE$3,701$285$4,147

(a)Interest expense allocated from NEECH to NextEra Energy Resources is based on a deemed capital structure of 70% 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 the tax sharing agreement with NEE. See Note 1 – Income Taxes.

(c)Other segment items for each reportable segment include:

FPL – Gains on disposal of businesses/assets – net, allowance for equity funds used during construction and other – net

NEER – Gains on disposal of businesses/assets – net, equity in earnings of equity method investees, allowance for equity funds used during construction, gains on disposal of investments and other property – net, change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net, other – net and net loss attributable to noncontrolling interests

NEE's and FPL's additional segment information is as follows:

2024
FPLNEERTotal Reportable SegmentsCorp. and OtherTotal Consolidated
(millions)
Gains (losses) on disposal of businesses/assets – net$1$361$362$(10)$352
Equity in earnings (losses) of equity method investees$—$(267)$(267)$21$(246)
Net loss attributable to noncontrolling interests$—$1,248$1,248$—$1,248
Capital expenditures, independent power and other investments and nuclear fuel purchases$8,214$16,392$24,606$123$24,729
Property, plant and equipment – net$76,166$62,526$138,692$160$138,852
Total assets$98,141$89,398$187,539$2,605$190,144
Investment in equity method investees$—$6,118$6,118$—$6,118
2023
FPLNEERTotal Reportable SegmentsCorp. and OtherTotal Consolidated
(millions)
Gains (losses) on disposal of businesses/assets – net$407$(3)$404$1$405
Equity in earnings (losses) of equity method investees$—$(649)$(649)$1$(648)
Net loss attributable to noncontrolling interests$—$1,028$1,028$—$1,028
Capital expenditures, independent power and other investments and nuclear fuel purchases$9,400$15,652$25,052$61$25,113
Property, plant and equipment – net$70,608$55,034$125,642$134$125,776
Total assets$91,469$83,145$174,614$2,875$177,489
Investment in equity method investees$—$6,145$6,145$11$6,156

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NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

2022
FPLNEERTotal Reportable SegmentsCorp. and OtherTotal Consolidated
(millions)
Gains (losses) on disposal of businesses/assets – net$4$536$540$(18)$522
Equity in earnings of equity method investees$—$202$202$1$203
Net loss attributable to noncontrolling interests$—$901$901$—$901
Capital expenditures, independent power and other investments and nuclear fuel purchases$9,185$9,645$18,830$453$19,283
Property, plant and equipment – net$64,693$45,840$110,533$526$111,059
Total assets$86,559$70,713$157,272$1,663$158,935
Investment in equity method investees$—$6,572$6,572$10$6,582

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