Item 1. Financial Statements

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Item 1. Financial Statements

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions, except per share amounts)

(unaudited)


	Three Months Ended March 31,
		2025		2024
OPERATING REVENUES		$	6,247	$	5,731
OPERATING EXPENSES
Fuel, purchased power and interchange		1,165		1,206
Other operations and maintenance		1,173		1,123



Depreciation and amortization		1,095		898
Taxes other than income taxes and other – net		594		549
Total operating expenses – net		4,027		3,776
GAINS ON DISPOSAL OF BUSINESSES/ASSETS – NET		36		58
OPERATING INCOME		2,256		2,013
OTHER INCOME (DEDUCTIONS)
Interest expense		(1,774)		(323)

Equity in earnings (losses) of equity method investees		(646)		203
Allowance for equity funds used during construction		38		56


Gains (losses) on disposal of investments and other property – net		(2)		15
Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net		(68)		128
Other net periodic benefit income		67		38
Other – net		72		34
Total other income (deductions) – net		(2,313)		151
INCOME (LOSS) BEFORE INCOME TAXES		(57)		2,164
INCOME TAX EXPENSE (BENEFIT)		(521)		227
NET INCOME		464		1,937
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		369		331
NET INCOME ATTRIBUTABLE TO NEE		$	833	$	2,268
Earnings per share attributable to NEE:
Basic		$	0.41	$	1.11
Assuming dilution		$	0.40	$	1.10

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

(unaudited)


	Three Months Ended March 31,
		2025		2024
NET INCOME		$	464	$	1,937
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Net unrealized gains (losses) on available for sale securities:
Net unrealized gains (losses) on securities still held (net of $3 tax expense and $2 tax benefit, respectively)		9		(6)
Reclassification from AOCI to net income (net of $1 tax benefit and $0 tax benefit, respectively)		3		1



Net unrealized losses on foreign currency translation		—		(14)

Total other comprehensive income (loss), net of tax		12		(19)
COMPREHENSIVE INCOME		476		1,918

COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		369		335
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE		$	845	$	2,253

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except par value)

(unaudited)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,419	$	1,487
Customer receivables, net of allowances of $54 and $56, respectively	3,153		3,336
Other receivables	1,436		1,180
Materials, supplies and fuel inventory	2,326		2,214
Regulatory assets	1,116		1,417
Derivatives	971		879

Other	1,227		1,438
Total current assets	12,648		11,951
Other assets:
Property, plant and equipment – net ($26,492 and $25,632 related to VIEs, respectively)	142,223		138,852
Special use funds	9,625		9,800
Investment in equity method investees	5,270		6,118
Prepaid benefit costs	2,548		2,496
Regulatory assets	5,434		4,828
Derivatives	1,710		1,774
Goodwill	4,866		4,866
Other	9,940		9,459
Total other assets	181,616		178,193
TOTAL ASSETS	$	194,264	$	190,144
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Commercial paper	$	2,005	$	1,670
Other short-term debt	217		217
Current portion of long-term debt ($25 and $25 related to VIEs, respectively)	7,642		8,061
Accounts payable ($158 and $631 related to VIEs, respectively)	4,753		6,982
Customer deposits	697		694
Accrued interest and taxes	1,301		1,016
Derivatives	1,659		1,073
Accrued construction-related expenditures	1,917		2,346
Regulatory liabilities	317		279
Other	2,353		3,017
Total current liabilities	22,861		25,355
Other liabilities and deferred credits:
Long-term debt ($450 and $436 related to VIEs, respectively)	79,814		72,385
Asset retirement obligations	3,708		3,671
Deferred income taxes	11,441		11,749
Regulatory liabilities	10,251		10,635
Derivatives	2,191		2,008
Other	3,632		3,480
Total other liabilities and deferred credits	111,037		103,928
TOTAL LIABILITIES	133,898		129,283
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – VIEs	61		401
EQUITY
Common stock ($0.01 par value, authorized shares – 3,200; outstanding shares – 2,059 and 2,057, respectively)	21		21
Additional paid-in capital	17,292		17,260
Retained earnings	32,613		32,946
Accumulated other comprehensive loss	(114)		(126)
Total common shareholders' equity	49,812		50,101
Noncontrolling interests ($10,338 and $10,206 related to VIEs, respectively)	10,493		10,359
TOTAL EQUITY	60,305		60,460
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	194,264	$	190,144

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)


	Three Months Ended March 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	464	$	1,937
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,095		898
Nuclear fuel and other amortization	81		90

Unrealized losses (gains) on marked to market derivative contracts – net	964		(351)

Foreign currency transaction losses (gains)	8		(26)
Deferred income taxes	(400)		398
Cost recovery clauses and franchise fees	(133)		308


Equity in losses (earnings) of equity method investees	646		(203)
Distributions of earnings from equity method investees	123		170
Gains on disposal of businesses, assets and investments – net	(34)		(73)
Recoverable storm-related costs	(177)		(31)
Other – net	122		(62)
Changes in operating assets and liabilities:
Current assets	222		330
Noncurrent assets	(61)		(2)
Current liabilities	(259)		(353)
Noncurrent liabilities	108		47
Net cash provided by operating activities	2,769		3,077
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL	(2,341)		(2,237)
Independent power and other investments of NEER	(5,441)		(7,243)
Nuclear fuel purchases	(153)		(140)
Other capital expenditures	(7)		(91)

Sale of independent power and other investments of NEER	238		565
Proceeds from sale or maturity of securities in special use funds and other investments	1,257		951
Purchases of securities in special use funds and other investments	(1,292)		(1,078)

Other – net	15		(48)
Net cash used in investing activities	(7,724)		(9,321)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts	9,840		7,811
Retirements of long-term debt	(2,852)		(3,994)


Net change in commercial paper	335		(308)
Proceeds from other short-term debt	850		3,408
Repayments of other short-term debt	(850)		(155)
Cash swept from (repayments to) related parties – net	(45)		(68)
Issuances of common stock/equity units	11		6
Dividends on common stock	(1,166)		(1,058)
Other – net	(20)		(604)
Net cash provided by financing activities	6,103		5,038
Effects of currency translation on cash, cash equivalents and restricted cash	—		(1)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,148		(1,207)
Cash, cash equivalents and restricted cash at beginning of period	1,402		3,420
Cash, cash equivalents and restricted cash at end of period	$	2,550	$	2,213
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)	$	631	$	519
Cash received for income taxes – net	$	(114)	$	(195)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	4,182	$	2,702

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions, except per share amounts)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Three Months Ended March 31, 2025	Shares	Aggregate Par Value
Balances, December 31, 2024	2,057	$	21	$	17,260	$	(126)	$	32,946	$	50,101	$	10,359	$	60,460	$	401
Net income (loss)	—	—		—		—		833		833		(372)				3

Share-based payment activity	2	—		38		—		—		38		—				—
Dividends on common stock(a)	—	—		—		—		(1,166)		(1,166)		—				—
Other comprehensive income	—	—		—		12		—		12		—				—

Other differential membership interests activity	—	—		(7)		—		—		(7)		516				(343)

Other – net	—	—		1		—		—		1		(10)				—
Balances, March 31, 2025	2,059	$	21	$	17,292	$	(114)	$	32,613	$	49,812	$	10,493	$	60,305	$	61

———————————————

(a)Dividends per share were $0.5665 for the three months ended March 31, 2025.


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Three Months Ended March 31, 2024	Shares	Aggregate Par Value
Balances, December 31, 2023	2,052	$	21	$	17,365	$	(153)	$	30,235	$	47,468	$	10,300	$	57,768	$	1,256
Net income (loss)	—	—		—		—		2,268		2,268		(345)				14

Share-based payment activity	3	—		38		—		—		38		—				—
Dividends on common stock(a)	—	—		—		—		(1,058)		(1,058)		—				—
Other comprehensive loss	—	—		—		(15)		—		(15)		(4)				—

Other differential membership interests activity	—	—		(9)		—		—		(9)		362				(817)

Other – net	—	—		(52)		1		—		(51)		(18)				—
Balances, March 31, 2024	2,055	$	21	$	17,342	$	(167)	$	31,445	$	48,641	$	10,295	$	58,936	$	453

(a)Dividends per share were $0.515 for the three months ended March 31, 2024.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)


	Three Months Ended March 31,
		2025		2024
OPERATING REVENUES		$	3,997	$	3,834
OPERATING EXPENSES
Fuel, purchased power and interchange		936		1,034
Other operations and maintenance		379		361

Depreciation and amortization		408		303
Taxes other than income taxes and other – net		475		460
Total operating expenses – net		2,198		2,158
OPERATING INCOME		1,799		1,676
OTHER INCOME (DEDUCTIONS)
Interest expense		(317)		(279)
Allowance for equity funds used during construction		37		53
Other – net		12		1
Total other income (deductions) – net		(268)		(225)
INCOME BEFORE INCOME TAXES		1,531		1,451
INCOME TAXES		215		279
NET INCOME(a)		$	1,316	$	1,172

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

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

(unaudited)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	512	$	32
Customer receivables, net of allowances of $7 and $9, respectively	1,349		1,400
Other receivables	348		380
Materials, supplies and fuel inventory	1,327		1,309
Regulatory assets	1,100		1,405

Other	217		257
Total current assets	4,853		4,783
Other assets:
Electric utility plant and other property – net	77,427		76,166
Special use funds	6,748		6,875
Prepaid benefit costs	1,983		1,954
Regulatory assets	5,079		4,464
Goodwill	2,965		2,965
Other	1,009		934
Total other assets	95,211		93,358
TOTAL ASSETS	$	100,064	$	98,141
LIABILITIES AND EQUITY
Current liabilities:
Commercial paper	$	450	$	1,430

Current portion of long-term debt	1,840		1,719
Accounts payable	1,005		996
Customer deposits	673		669
Accrued interest and taxes	866		443

Accrued construction-related expenditures	645		860
Regulatory liabilities	312		273
Other	742		1,105
Total current liabilities	6,533		7,495
Other liabilities and deferred credits:
Long-term debt	26,858		25,026
Asset retirement obligations	2,295		2,276
Deferred income taxes	9,649		9,438
Regulatory liabilities	10,080		10,465

Other	357		365
Total other liabilities and deferred credits	49,239		47,570
TOTAL LIABILITIES	55,772		55,065
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock (no par value, 1,000 shares authorized, issued and outstanding)	1,373		1,373
Additional paid-in capital	26,868		26,868
Retained earnings	16,051		14,835

TOTAL EQUITY	44,292		43,076
TOTAL LIABILITIES AND EQUITY	$	100,064	$	98,141

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)


	Three Months Ended March 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,316	$	1,172
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	408		303
Nuclear fuel and other amortization	35		44
Deferred income taxes	135		175
Cost recovery clauses and franchise fees	(133)		308

Recoverable storm-related costs	(177)		(31)
Other – net	4		(18)
Changes in operating assets and liabilities:
Current assets	23		183
Noncurrent assets	(59)		(20)
Current liabilities	363		145
Noncurrent liabilities	(6)		4
Net cash provided by operating activities	1,909		2,265
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(2,341)		(2,237)
Nuclear fuel purchases	(51)		(108)
Proceeds from sale or maturity of securities in special use funds	751		690
Purchases of securities in special use funds	(792)		(729)
Other – net	80		(9)
Net cash used in investing activities	(2,353)		(2,393)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts	1,996		—
Retirements of long-term debt	(22)		(1,220)
Net change in commercial paper	(980)		(2,024)

Repayments of other short-term debt	—		(55)
Capital contributions from NEE	—		3,400
Dividends to NEE	(100)		—
Other – net	(31)		(8)
Net cash provided by financing activities	863		93
Net increase (decrease) in cash, cash equivalents and restricted cash	419		(35)
Cash, cash equivalents and restricted cash at beginning of period	133		72
Cash, cash equivalents and restricted cash at end of period	$	552	$	37
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)	$	173	$	192
Cash paid for income taxes – net	$	10	$	65
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	875	$	705

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY

(millions)

(unaudited)


Three Months Ended March 31, 2025	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2024	$	1,373	$	26,868	$	14,835	$	43,076
Net income	—		—		1,316

Dividends to NEE	—		—		(100)


Balances, March 31, 2025	$	1,373	$	26,868	$	16,051	$	44,292


Three Months Ended March 31, 2024	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2023	$	1,373	$	23,470	$	13,992	$	38,835
Net income	—		—		1,172
Capital contributions from NEE	—		3,400		—


Other	—		(2)		1
Balances, March 31, 2024	$	1,373	$	26,868	$	15,165	$	43,406

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2024 Form 10-K.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The accompanying condensed consolidated financial statements should be read in conjunction with the 2024 Form 10-K. In the opinion of NEE and FPL management, all adjustments considered necessary for fair financial statement presentation have been made. All adjustments are normal and recurring unless otherwise noted. Certain amounts included in the prior year's condensed consolidated financial statements have been reclassified to conform to the current year's presentation. The results of operations for an interim period generally will not give a true indication of results for the year.

1. Revenue from Contracts with Customers

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 2) 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. NEE’s revenue from contracts with customers was approximately $6.0 billion ($4.0 billion at FPL) and $5.4 billion ($3.8 billion at FPL) for the three months ended March 31, 2025 and 2024, respectively. NEE's and FPL's receivables are primarily associated with revenues earned from contracts with customers, as well as derivative and lease transactions at NEER, and consist of both billed and unbilled amounts, which are recorded in customer receivables and other receivables on NEE's and FPL's condensed consolidated balance sheets. Receivables represent unconditional rights to consideration and reflect the differences in timing of revenue recognition and cash collections. For substantially all of NEE's and FPL's receivables, regardless of the type of revenue transaction from which the receivable originated, customer and counterparty credit risk is managed in the same manner and the terms and conditions of payment are similar.

FPL – FPL’s revenues are derived primarily from tariff-based sales that result from providing electricity to retail customers in Florida with no defined contractual term. Electricity sales to retail customers account for approximately 90% of FPL’s operating revenues, the majority of which are to residential customers. FPL's retail customers receive a bill monthly based on the amount of monthly kWh usage with payment due monthly. For these types of sales, FPL recognizes revenue as electricity is delivered and billed to customers, as well as an estimate for electricity delivered and not yet billed. The billed and unbilled amounts represent the value of electricity delivered to the customer. At March 31, 2025 and December 31, 2024, FPL's unbilled revenues amounted to approximately $594 million and $573 million, respectively, and are included in customer receivables on NEE's and FPL's condensed consolidated balance sheets. Certain contracts with customers contain a fixed price with maturity dates through 2054. As of March 31, 2025, FPL expects to record approximately $580 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. As of March 31, 2025, 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

2. 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 OTC 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 condensed 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 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 condensed consolidated statements of income. Settlement gains and losses are included within the line items in the condensed 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 condensed consolidated statements of income. For commodity 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 condensed 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 condensed consolidated statements of income. At March 31, 2025, 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The tables below present NEE's and FPL's gross derivative positions at March 31, 2025 and December 31, 2024, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the condensed consolidated balance sheets.


	March 31, 2025
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	2,111	$	3,679	$	1,597	$	(4,860)	$	2,527
Interest rate contracts	$	—	$	166	$	—	$	(11)	155
Foreign currency contracts	$	—	$	—	$	—	$	(1)	(1)
Total derivative assets									$	2,681

FPL – commodity contracts	$	—	$	6	$	77	$	(15)	$	68

Liabilities:
NEE:
Commodity contracts	$	2,407	$	3,984	$	1,080	$	(4,561)	$	2,910
Interest rate contracts	$	—	$	845	$	—	$	(11)	834
Foreign currency contracts	$	—	$	107	$	—	$	(1)	106
Total derivative liabilities									$	3,850

FPL – commodity contracts	$	—	$	2	$	19	$	(8)	$	13

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	971
Noncurrent derivative assets(c)									1,710
Total derivative assets									$	2,681
Current derivative liabilities									$	1,659

Noncurrent derivative liabilities(d)									2,191
Total derivative liabilities									$	3,850

Net fair value by FPL balance sheet line item:
Current other assets									$	53
Noncurrent other assets									15
Total derivative assets									$	68
Current other liabilities									$	13

———————————————

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

(b)Reflects the netting of approximately $251 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $54 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $6 million in margin cash collateral paid to counterparties.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


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

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

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

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

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	879
Noncurrent derivative assets(c)									1,774
Total derivative assets									$	2,653
Current derivative liabilities									$	1,073

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

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

———————————————

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

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

At March 31, 2025 and December 31, 2024, NEE had approximately $45 million ($1 million at FPL) and $47 million ($2 million at FPL), respectively, in margin cash collateral received from counterparties that was not offset against derivative assets in the above presentation. These amounts are included in current other liabilities on NEE's condensed consolidated balance sheets. Additionally, at March 31, 2025 and December 31, 2024, NEE had approximately $177 million (none at FPL) and $58 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 condensed consolidated balance sheets.

Significant Unobservable Inputs Used in Recurring Fair Value Measurements – The valuation of certain commodity contracts requires the use of significant unobservable inputs. All forward price, implied volatility, implied correlation and interest rate inputs used in the valuation of such contracts are directly based on third-party market data, such as broker quotes and exchange settlements, when that data is available. If third-party market data is not available, then industry standard methodologies are used to develop inputs that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs, including some forward prices, implied volatilities and interest rates used for determining fair value are updated daily to reflect the best available market information. Unobservable inputs which are related to observable inputs, such as illiquid portions of forward price or volatility curves, are updated daily as well, using industry standard techniques such as interpolation and extrapolation, combining observable forward inputs supplemented by historical market and other relevant data. Other unobservable inputs, such as implied correlations, block-to-hourly price shaping, customer migration rates from full

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 March 31, 2025 are as follows:


	Fair Value at				Valuation		Significant						Weighted-
Transaction Type	March 31, 2025				Technique(s)		Unobservable Inputs		Range				average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	580	$	442	Discounted cash flow		Forward price (per MWh)		$(4)	—	$309		$53
Forward contracts – gas	314		41		Discounted cash flow		Forward price (per MMBtu)		$(1)	—	$13		$4
Forward contracts – congestion	43		30		Discounted cash flow		Forward price (per MWh)		$(55)	—	$23		$—
Options – power	14		3		Option models		Implied correlations		64%	—	74%		68%
							Implied volatilities		37%	—	227%		73%
Options – primarily gas	119		153		Option models		Implied correlations		64%	—	100%		91%
							Implied volatilities		15%	—	145%		48%
Full requirements and unit contingent contracts	195		284		Discounted cash flow		Forward price (per MWh)		$20	—	$385		$85
						Customer migration rate(b)		—%	—	31%		1%
Forward contracts – other	332		127
Total	$	1,597	$	1,080

———————————————

(a)Unobservable inputs were weighted by volume.

(b)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 Input	Position	Impact on Fair Value Measurement
Forward price	Purchase power/gas	Increase (decrease)
	Sell power/gas	Decrease (increase)
Implied correlations	Purchase option	Decrease (increase)
	Sell option	Increase (decrease)
Implied volatilities	Purchase option	Increase (decrease)
	Sell option	Decrease (increase)
Customer migration rate	Sell power(a)	Decrease (increase)

———————————————

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

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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


	Three Months Ended March 31,
	2025				2024
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	387	$	34	$	951	$	24
Realized and unrealized gains (losses):
Included in operating revenues	109		—		33		—

Included in regulatory assets and liabilities	29		29		(16)		(16)
Purchases	38		—		23		—

Settlements	(11)		(5)		(299)		(6)
Issuances	(16)		—		(29)		—

Transfers in(a)	(17)		—		4		—
Transfers out(a)	(2)		—		—		—
Fair value of net derivatives based on significant unobservable inputs at March 31	$	517	$	58	$	667	$	2
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	86	$	—	$	(79)	$	—

———————————————

(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 condensed consolidated statements of income as follows:


	Three Months Ended March 31,
		2025		2024
		(millions)

Commodity contracts(a) – operating revenues (including $12 unrealized gains and $100 unrealized gains, respectively)		$	155	$	26

Foreign currency contracts – interest expense (including $3 unrealized losses and $16 unrealized losses, respectively)		(5)		(23)

Interest rate contracts – interest expense (including $973 unrealized losses and $267 unrealized gains, respectively)		(775)		578
Losses reclassified from AOCI to interest expense:

Foreign currency contracts		(1)		(1)
Total		$	(626)	$	580

———————————————

(a)For the three months ended March 31, 2025 and 2024, FPL recorded approximately $32 million of gains and $20 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.

Notional Volumes of Derivative Instruments – The following table represents net notional volumes associated with derivative instruments that are required to be reported at fair value in NEE's and FPL's condensed consolidated financial statements. The table includes significant volumes of transactions that have minimal exposure to commodity price changes because they are variably priced agreements. These volumes are only an indication of the commodity exposure that is managed through the use of derivatives. They do not represent net physical asset positions or non-derivative positions and the related hedges, nor do they represent NEE’s and FPL’s net economic exposure, but only the net notional derivative positions that fully or partially hedge the related asset positions. NEE and FPL had derivative commodity contracts for the following net notional volumes:


	March 31, 2025				December 31, 2024
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(189)	MWh	—		(189)	MWh	—
Natural gas	(908)	MMBtu	520	MMBtu	(1,131)	MMBtu	503	MMBtu
Oil	(23)	barrels	—		(25)	barrels	—

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

At March 31, 2025 and December 31, 2024, NEE had interest rate contracts with a net notional amount of approximately $39.5 billion and $35.2 billion, respectively, and foreign currency contracts with a notional amount of approximately $1.2 billion and $1.2 billion, respectively.

Credit*-Risk-*Related Contingent Features – Certain derivative instruments contain credit-risk-related contingent features including, among other things, the requirement to maintain an investment grade credit rating from specified credit rating agencies and certain financial ratios, as well as credit-related cross-default and material adverse change triggers. At March 31, 2025 and December 31, 2024, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $4.8 billion ($12 million for FPL) and $3.8 billion ($11 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 $340 million ($10 million at FPL) at March 31, 2025 and $500 million (none at FPL) at December 31, 2024. 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 $2.5 billion ($35 million at FPL) at March 31, 2025 and $2.4 billion ($25 million at FPL) at December 31, 2024. 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 $2.0 billion ($85 million at FPL) at March 31, 2025 and $1.4 billion ($70 million at FPL) at December 31, 2024.

Collateral related to derivatives, including amounts posted for margin, current exposures and future performance with exchanges and independent system operators, may be posted in the form of cash or credit support in the normal course of business. At March 31, 2025 and December 31, 2024, applicable NEE subsidiaries have posted approximately $54 million (none at FPL) and $19 million (none at FPL), respectively, in cash, and $1,419 million (none at FPL) and $1,334 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.

3. 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 2 – 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 $671 million and $665 million at March 31, 2025 and December 31, 2024, respectively, and are included in noncurrent other assets on NEE's condensed consolidated balance sheets. Adjustments to carrying values are recorded as a result of observable price changes in transactions for identical or similar investments of the same issuer.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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:


	March 31, 2025
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	1,408	$	—		$	—	$	1,408
FPL – equity securities	$	448	$	—		$	—	$	448
Special use funds:(b)
NEE:
Equity securities	$	2,561	$	3,166	(c)	$	230	$	5,957
U.S. Government and municipal bonds	$	639	$	64		$	—	$	703
Corporate debt securities	$	6	$	709		$	—	$	715
Asset-backed securities	$	—	$	908		$	—	$	908
Other debt securities	$	2	$	16		$	—	$	18
FPL:
Equity securities	$	1,017	$	2,845	(c)	$	205	$	4,067
U.S. Government and municipal bonds	$	511	$	45		$	—	$	556
Corporate debt securities	$	6	$	520		$	—	$	526
Asset-backed securities	$	—	$	683		$	—	$	683
Other debt securities	$	2	$	9		$	—	$	11
Other investments:(d)
NEE:
Equity securities	$	47	$	1		$	—	$	48
U.S. Government and municipal bonds	$	109	$	3		$	—	$	112
Corporate debt securities	$	—	$	875		$	120	$	995
Other debt securities	$	—	$	302		$	38	$	340
FPL:
Equity securities	$	8	$	—		$	—	$	8

———————————————

(a)Includes restricted cash equivalents of approximately $44 million ($36 million for FPL) in current other assets on the condensed consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


	December 31, 2024
	Level 1		Level 2			Level 3		Total
	(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 condensed consolidated balance sheets.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

Contingent Consideration – NEER had approximately $124 million and $124 million of contingent consideration liabilities related to acquisitions included in noncurrent other liabilities on NEE's condensed consolidated balance sheets at March 31, 2025 and December 31, 2024, 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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:


	March 31, 2025					December 31, 2024
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)
NEE:
Special use funds(a)	$	1,324	$	1,324		$	1,342	$	1,343
Other receivables, net of allowances(b)	$	612	$	612		$	629	$	629
Long-term debt, including current portion	$	87,456	$	84,009	(c)	$	80,446	$	76,428	(c)
FPL:
Special use funds(a)	$	905	$	906		$	915	$	916
Long-term debt, including current portion	$	28,698	$	26,981	(c)	$	26,745	$	24,718	(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 $373 million and $396 million is included in current other assets and $239 million and $233 million is included in noncurrent other assets on NEE's condensed consolidated balance sheets at March 31, 2025 and December 31, 2024, respectively (primarily Level 3).

(c)At March 31, 2025 and December 31, 2024, 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 $9,624 million ($6,747 million for FPL) and $9,799 million ($6,874 million for FPL) at March 31, 2025 and December 31, 2024, 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 $3,818 million ($1,796 million for FPL) and $3,720 million ($1,780 million for FPL) at March 31, 2025 and December 31, 2024, respectively. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at March 31, 2025 of approximately nine years at both NEE and FPL. Other investments primarily consist of debt securities with a weighted-average maturity at March 31, 2025 of approximately nine years. The cost of securities sold is determined using the specific identification method.

For FPL's special use funds, changes in fair value of debt and equity securities, including any estimated credit losses of debt securities, result in a corresponding adjustment to the related regulatory asset or liability accounts, consistent with regulatory treatment. For NEE's non-rate regulated operations, changes in fair value of debt securities result in a corresponding adjustment to OCI, except for estimated credit losses and unrealized losses on debt securities intended or required to be sold prior to recovery of the amortized cost basis, which are recognized in other – net in NEE's condensed consolidated statements of income. Changes in fair value of equity securities are primarily recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE’s condensed consolidated statements of income.

Unrealized gains (losses) recognized on equity securities held at March 31, 2025 and 2024 are as follows:


		NEE					FPL
	Three Months Ended March 31,					Three Months Ended March 31,
		2025		2024			2025		2024
		(millions)
Unrealized gains (losses)		$	(248)	$	430		$	(175)	$	288

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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


		NEE					FPL
	Three Months Ended March 31,					Three Months Ended March 31,
		2025		2024			2025		2024
		(millions)
Realized gains		$	14	$	11		$	13	$	10
Realized losses		$	18	$	11		$	13	$	8
Proceeds from sale or maturity of securities		$	768	$	564		$	535	$	432

The unrealized gains and unrealized losses on available for sale debt securities and the fair value of available for sale debt securities in an unrealized loss position are as follows:


	NEE				FPL
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
	(millions)
Unrealized gains	$	36	$	25	$	21	$	16
Unrealized losses(a)	$	96	$	119	$	47	$	61
Fair value	$	1,579	$	2,224	$	885	$	1,160

———————————————

(a) Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at March 31, 2025 and December 31, 2024 were not material to NEE or FPL.

Regulations issued by the FERC and the NRC provide general risk management guidelines to protect nuclear decommissioning funds and to allow such funds to earn a reasonable return. The FERC regulations prohibit, among other investments, investments in any securities of NEE or its subsidiaries, affiliates or associates, excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants are included in the NRC operating licenses for those facilities or in NRC regulations applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for Seabrook, decommissioning fund contributions and withdrawals are also regulated by the New Hampshire Nuclear Decommissioning Financing Committee pursuant to New Hampshire law.

The nuclear decommissioning reserve funds are managed by investment managers who must comply with the guidelines of NEE and FPL and the rules of the applicable regulatory authorities. The funds' assets are invested giving consideration to taxes, liquidity, risk, diversification and other prudent investment objectives.

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 OpCo, and accounts for this ownership interest as an equity method investment. During the preparation of NEE's March 31, 2025 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 following XPLR's announcement of a strategic repositioning, including suspension of the distribution to common unitholders for an indefinite period. The impairment reflected NEE's fair value analysis using the market approach and the observable trading price of XPLR's common units at March 31, 2025 of $9.50. 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 $1.7 billion was written down to its estimated fair value of $1.0 billion, resulting in an impairment charge of $0.7 billion ($0.5 billion after tax), which is reflected in equity in earnings (losses) of equity method investees in NEE’s condensed consolidated statements of income for the three months ended March 31, 2025. 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 condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

4. Income Taxes

NEE's effective income tax rate is based on the composition of pretax income or loss, which, for the three months ended March 31, 2025, primarily reflects the impact of unfavorable changes in the fair value of interest rate derivative instruments as well as the impairment charge related to the investment in XPLR (see Note 3 – Nonrecurring Fair Value Measurements).

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


	NEE	FPL
	Three Months Ended March 31,	Three Months Ended March 31,
		2025		2024		2025		2024
Statutory federal income tax rate		21.0	%	21.0	%	21.0	%	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit		(29.6)		1.5		4.3		4.3
Taxes attributable to noncontrolling interests		(136.5)		3.4		—		—
Renewable energy tax credits		947.2		(11.7)		(8.2)		(2.7)
Amortization of deferred regulatory credit		75.8		(1.9)		(2.8)		(2.9)


Other – net		36.1		(1.8)		(0.3)		(0.5)
Effective income tax rate		914.0	%	10.5	%	14.0	%	19.2	%

NEE recognizes PTCs as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year. NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the expected value of most wind and some solar projects and a fundamental component of such wind and solar projects' results of operations. PTCs, as well as ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income or loss. The amount of PTCs recognized can be significantly affected by wind and solar generation and by the roll off of PTCs after ten years of production absent a repowering of the wind and solar projects.

5. Related Party Transactions

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 52.5% 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, development and construction, administrative and management services agreements (service agreements). Under these service agreements, NextEra Energy Resources incurred approximately $363 million and $52 million of costs during the three months ended March 31, 2025 and 2024, respectively, primarily in connection with wind repowering, which will be reimbursed by XPLR. NextEra Energy Resources is also party to a CSCS agreement with a subsidiary of XPLR. At March 31, 2025 and December 31, 2024, the cash sweep amounts (due to XPLR and its subsidiaries) held in accounts belonging to NextEra Energy Resources or its subsidiaries were approximately $93 million and $127 million, respectively, and are included in accounts payable. Amounts due from XPLR of approximately $415 million and $159 million are included in other receivables and $132 million and $128 million are included in noncurrent other assets at March 31, 2025 and December 31, 2024, respectively. NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $1.8 billion at March 31, 2025 primarily related to obligations on behalf of XPLR's subsidiaries with maturity dates ranging from 2025 to 2063, including certain project performance obligations and obligations under financing and interconnection agreements. Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries are the guarantor are recorded on NEE’s condensed consolidated balance sheets at fair value. At March 31, 2025, 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 condensed consolidated balance sheet.

During 2025 and 2024, 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 $220 million and $152 million for the three months ended March 31, 2025 and 2024, respectively.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

6. Variable Interest Entities

NEER – At March 31, 2025, 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 2031 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 $1,667 million and $514 million, respectively, at March 31, 2025, and $1,708 million and $520 million, respectively, at December 31, 2024. At March 31, 2025 and December 31, 2024, 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 $1,338 million and $75 million, respectively, at March 31, 2025, and $1,346 million and $76 million, respectively, at December 31, 2024. At March 31, 2025 and December 31, 2024, the assets of this VIE consisted primarily of property, plant and equipment.

NextEra Energy Resources consolidates 31 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 10,835 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 24 MW and 905 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 $25,008 million and $949 million, respectively, at March 31, 2025. There were 30 of these consolidated VIEs at December 31, 2024 and the assets and liabilities of those VIEs at such date totaled approximately $23,902 million and $1,546 million, respectively. At March 31, 2025 and December 31, 2024, the assets of these VIEs consisted primarily of property, plant and equipment, and as of December 31, 2024, the liabilities of these VIEs consisted primarily of accounts payable.

Other – At March 31, 2025 and December 31, 2024, several NEE subsidiaries had investments totaling approximately $5,748 million ($4,365 million at FPL) and $5,848 million ($4,506 million at FPL), respectively, which are included in special use funds and noncurrent other assets on NEE's condensed consolidated balance sheets and in special use funds on FPL's condensed consolidated balance sheets. These investments represented primarily commingled funds and asset-backed securities. NEE subsidiaries, including FPL, are not the primary beneficiaries and therefore do not consolidate any of these entities because they do not control any of the ongoing activities of these entities, were not involved in the initial design of these entities and do not have a controlling financial interest in these entities.

Certain subsidiaries of NEE have noncontrolling interests in entities accounted for under the equity method, including NEE's noncontrolling interest in XPLR OpCo (see Note 5). 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 $2,482 million and $3,315 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, subsidiaries of NEE had guarantees related to certain obligations of one of these entities, as well as commitments to invest an additional approximately $170 million in several of these entities. See further discussion of such guarantees and commitments in Note 11 – Commitments and – Contracts, respectively.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

7. Employee Retirement Benefits

NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements.

The components of net periodic cost (income) for the plans are as follows:


	Pension Benefits		Postretirement Benefits
	Three Months Ended March 31,		Three Months Ended March 31,
				2025		2024		2025		2024
		(millions)
Service cost				$	17	$	18	$	—	$	—
Interest cost				34		33		2		2
Expected return on plan assets				(103)		(102)		—		—



Special termination benefit(a)				—		28		—		—

Net periodic cost (income) at NEE				$	(52)	$	(23)	$	2	$	2
Net periodic cost (income) allocated to FPL				$	(30)	$	(9)	$	2	$	2

———————————————

(a)Reflects enhanced early retirement benefit.

8. Debt

Significant long-term debt issuances and borrowings during the three months ended March 31, 2025 were as follows:


	Principal Amount		Interest Rate						Maturity Date
	(millions)
FPL:
First mortgage bonds	$	2,000	5.30	%	–	5.80	%		2034	–	2065


NEECH:
Debentures – fixed	$	4,500	4.85	%	–	5.90	%		2028	–	2055
Debentures – variable	$	500	Variable					(a)	2028

Junior subordinated debentures	$	2,500	6.38	%	–	6.50	%	(b)	2055

———————————————

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

(b)Two series of junior subordinated debentures were issued in February 2025 and will bear interest at the stated rates until August 15, 2030 and 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 reset below the respective initial interest rates.

9. Equity

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


	Three Months Ended March 31,
		2025		2024
		(millions, except per share amounts)

Numerator – net income attributable to NEE		$	833	$	2,268



Denominator:
Weighted-average number of common shares outstanding – basic		2,055.5		2,051.5
Equity units, stock options, performance share awards, restricted stock and exchangeable notes(a)		5.2		3.7
Weighted-average number of common shares outstanding – assuming dilution		2,060.7		2,055.2
Earnings per share attributable to NEE:
Basic		$	0.41	$	1.11
Assuming dilution		$	0.40	$	1.10

———————————————

(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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 72.3 million and 43.4 million for the three months ended March 31, 2025 and 2024, respectively.

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 Hedges		Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income Related to Equity Method Investees		Total
	(millions)
Three Months Ended March 31, 2025
Balances, December 31, 2024	$	23	$	(37)		$	(19)	$	(101)	$	8	$	(126)
Other comprehensive income before reclassifications	—		9			—		—		—		9
Amounts reclassified from AOCI	—		3		(a)	—		—		—		3
Net other comprehensive income	—		12			—		—		—		12

Balances, March 31, 2025	$	23	$	(25)		$	(19)	$	(101)	$	8	$	(114)

———————————————

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


	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income Related to Equity Method Investees		Total
	(millions)
Three Months Ended March 31, 2024
Balances, December 31, 2023	$	22	$	(39)		$	(79)	$	(64)	$	7	$	(153)
Other comprehensive loss before reclassifications	—		(6)			—		(14)		—		(20)
Amounts reclassified from AOCI	—		1		(a)	—		—		—		1
Net other comprehensive loss	—		(5)			—		(14)		—		(19)
Less other comprehensive loss attributable to noncontrolling interests	—		—			—		5		—		5
Balances, March 31, 2024	$	22	$	(44)		$	(79)	$	(73)	$	7	$	(167)
Attributable to noncontrolling interests	$	—	$	—		$	—	$	(15)	$	—	$	(15)

———————————————

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

10. Summary of Significant Accounting and Reporting Policies

FPL 2021 Rate Agreement – 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 February 28, 2025, FPL filed a petition with the FPSC requesting, among other things, approval of a four-year base rate plan that would begin in January 2026 (proposed four-year rate plan) replacing the current base rate settlement agreement that has been in place since 2022 (2021 rate agreement). The proposed four-year rate plan consists of, among other things: (i) an increase to base annual revenue requirements of approximately $1,545 million effective January 2026; (ii) an increase to base annual revenue requirements of $927 million effective January 2027; and (iii) a Solar and Battery Base Rate Adjustment mechanism to recover, subject to FPSC review, the revenue requirements associated with the

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

cost of building and operating an additional 1,490 MW of solar and 596 MW of battery storage projects in 2028 and 1,788 MW of solar and 596 MW of battery storage projects in 2029. The plan also requests a non-cash tax adjustment mechanism, which would operate in a similar manner to the non-cash depreciation reserve surplus mechanisms that were integral to FPL's prior multi-year rate settlements, as well as a storm cost recovery mechanism and a process to address potential tax law changes, which were included in the 2021 rate agreement. Under this proposed four-year rate plan, FPL commits that if its requested base rate adjustments are approved, it will not request additional general base rate increases that would be effective before January 2030. FPL's requested increases are based on a regulatory ROE of 11.90% on its retail rate base and continuation of FPL's regulatory capital structure, including its longstanding equity ratio approved in prior base rate cases. Accompanying FPL's petition are the testimony and exhibits of FPL's witnesses and the FPSC's required schedules supporting the 2026 and 2027 general base rate increases and charges. Technical hearings on the base rate proceeding are scheduled during the third quarter of 2025 and a final decision is expected in the fourth quarter of 2025.

Restricted Cash – At March 31, 2025 and December 31, 2024, NEE had approximately $131 million ($40 million for FPL) and $159 million ($101 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 condensed 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 $123 million is netted against derivative assets and $6 million is netted against derivative liabilities at March 31, 2025 and $279 million is netted against derivative assets at December 31, 2024. See Note 2.

Storm Cost Recovery – In January 2025, FPL began recovering eligible storm costs and replenishment of the storm reserve through a storm surcharge 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 over a 12-month period 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 condensed consolidated balance sheets. The unpaid portion of the storm restoration costs at March 31, 2025 and December 31, 2024, of approximately $337 million and $557 million, respectively, including estimated capital costs, is included in current other liabilities on NEE's and FPL's condensed consolidated balance sheets.

Structured Payables – At March 31, 2025 and December 31, 2024, NEE's outstanding obligations under its structured payables program were approximately $2.0 billion and $4.0 billion, respectively.

Income Taxes – 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 three months ended March 31, 2025 and 2024 of approximately $105 million and $198 million, respectively, are reported in the cash received for income taxes – net within the supplemental disclosures of cash flow information on NEE's condensed consolidated statements of cash flows. In connection with entering into the agreements to sell renewable energy tax credits, NEECH provides certain indemnifications to the purchasers regarding the existence and qualifications of such credits. NEE has not recorded any liability related to these indemnifications after considering the nature of the indemnifications and NEE’s experience in generating and utilizing renewable energy tax credits. NEE's exposure to refund credits sold generally terminates based on the individual purchaser’s tax return statute of limitations which cannot be estimated.

Noncontrolling Interests – At March 31, 2025 and December 31, 2024, approximately $9,184 million and $9,062 million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relates to differential membership interests. For the three months ended March 31, 2025 and 2024, NEE recorded earnings of approximately $394 million and $348 million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests on NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Property, Plant and Equipment – Property, plant and equipment consists of the following:


	NEE				FPL
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
	(millions)
Electric plant in service and other property	$	156,482	$	151,677	$	90,089	$	87,596
Nuclear fuel	1,866		1,676		1,198		1,140
Construction work in progress	20,972		21,658		6,215		7,214
Property, plant and equipment, gross	179,320		175,011		97,502		95,950
Accumulated depreciation and amortization	(37,097)		(36,159)		(20,075)		(19,784)
Property, plant and equipment – net	$	142,223	$	138,852	$	77,427	$	76,166

During the three months ended March 31, 2025 and 2024, FPL recorded AFUDC of approximately $48 million and $65 million, respectively, including AFUDC – equity of $37 million and $53 million, respectively. During the three months ended March 31, 2025 and 2024, NEER capitalized interest on construction projects of approximately $139 million and $97 million, respectively.

11. 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 3 – Contingent Consideration.

At March 31, 2025, estimated capital expenditures, on an accrual basis, for the remainder of 2025 through 2029 were as follows:


	Remainder of 2025		2026		2027		2028		2029		Total
	(millions)
FPL:
Generation:(a)
New(b)	$	1,595	$	3,925	$	3,385	$	3,385	$	3,510	$	15,800
Existing	645		1,160		1,325		1,275		1,275		5,680
Transmission and distribution(c)	3,260		4,255		4,080		4,325		4,710		20,630
Nuclear fuel	185		300		305		395		375		1,560
General and other	625		880		810		790		715		3,820
Total	$	6,310	$	10,520	$	9,905	$	10,170	$	10,585	$	47,490
NEER:(d)
Wind(e)	$	1,145	$	1,630	$	465	$	65	$	40	$	3,345
Solar(f)	4,605		4,045		1,160		60		—		9,870
Other clean energy(g)	1,825		2,165		960		80		—		5,030
Nuclear, including nuclear fuel	275		370		395		405		425		1,870

Rate-regulated transmission(h)	875		985		640		495		685		3,680
Other	370		265		235		230		235		1,335
Total	$	9,095	$	9,460	$	3,855	$	1,335	$	1,385	$	25,130

———————————————

(a)Includes AFUDC of approximately $100 million, $170 million, $180 million, $175 million and $160 million for the remainder of 2025 through 2029, respectively.

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

(c)Includes AFUDC of approximately $55 million, $80 million, $75 million, $110 million and $140 million for the remainder of 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 2,198 MW, and related transmission.

(f)Includes capital expenditures for new solar projects (including solar plus battery storage projects) totaling approximately 9,035 MW and related transmission.

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

(h)Includes AFUDC of approximately $10 million, $10 million, $20 million, $10 million and $10 million for the remainder of 2025 through 2029, respectively.

The above estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

In addition to guarantees noted in Note 5 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 $701 million at March 31, 2025. 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 condensed consolidated balance sheets. Management believes that the exposure associated with these guarantees is not material.

Contracts – In addition to the commitments made in connection with the estimated capital expenditures included in the table in Commitments above, FPL has firm commitments under long-term contracts primarily for the transportation of natural gas with expiration dates through 2042.

At March 31, 2025, 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 $5.1 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.

The required capacity and/or minimum payments under contracts, including those discussed above, at March 31, 2025 were estimated as follows:


	Remainder of 2025		2026		2027		2028		2029		Thereafter
	(millions)
FPL(a)	$	885	$	1,145	$	1,115	$	1,080	$	1,050	$	7,165

NEER(b)(c)	$	4,280	$	2,015	$	535	$	140	$	95	$	350

———————————————

(a)Includes approximately $305 million, $400 million, $400 million, $400 million, $395 million and $4,765 million for the remainder of 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 $100 million and $102 million for the three months ended March 31, 2025 and 2024, respectively, of which $24 million was eliminated in consolidation at NEE for the three months ended March 31, 2024.

(b)Includes approximately $170 million of commitments to invest in technology and other investments through 2032. See Note 6 – Other.

(c)Includes approximately $925 million and $40 million for the remainder of 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 $175 million ($110 million for FPL), plus any applicable

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 10 – 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.

Legal Proceedings – 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. An appeal of the dismissal, which the lead plaintiffs filed with the U.S. Court of Appeals for the 11th Circuit in October 2024, remains pending. 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 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. All of these derivative cases, demands and requests are effectively stayed pending the appeal of the securities class action lawsuit described above.

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. NEE's motion to dismiss the lawsuit remains pending. NEE is vigorously defending against the claims in this proceeding.

12. Segment Information

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 1 for information regarding NEE's and FPL's operating revenues.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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


	Three Months Ended March 31, 2025
	FPL		NEER			Total
	(millions)
Operating revenues	$	3,997	$	2,163		$	6,160
Corporate and Other						87
Total consolidated revenues						6,247

Less:
Fuel, purchased power and interchange	936		229
Other operations and maintenance	379		659
Depreciation and amortization	408		671
Taxes other than income taxes and other – net	475		119
Interest expense	317		548		(a)
Income tax expense (benefit)(b)	215		(515)
Other segment items(c)	49		(280)
Net income attributable to NEE for reportable segments	1,316		172			1,488

Reconciliation of segment profit/(loss)
Corporate and Other						(655)
Net income attributable to NEE	$	1,316	$	172		$	833

(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 4.

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

FPL – Allowance for equity funds used during construction and other – net

NEER – Gains on disposal of businesses/assets – net, equity in earnings (losses) of equity method investees, allowance for equity funds used during construction, gains (losses) 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


	Three Months Ended March 31, 2024
	FPL		NEER			Total
	(millions)
Operating revenues	$	3,834	$	1,864		$	5,698
Corporate and Other						33
Total consolidated revenues						5,731

Less:
Fuel, purchased power and interchange	1,034		196
Other operations and maintenance	361		692
Depreciation and amortization	303		579
Taxes other than income taxes and other – net	460		89
Interest expense	279		173		(a)
Income tax expense (benefit)(b)	279		(97)
Other segment items(c)	54		734
Net income attributable to NEE for reportable segments	1,172		966			2,138

Reconciliation of segment profit/(loss)
Corporate and Other						130
Net income attributable to NEE	$	1,172	$	966		$	2,268

(b)Includes amounts that were recognized based on the tax sharing agreement with NEE. See Note 4.

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

FPL – Allowance for equity funds used during construction and other – net

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

(unaudited)

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



	FPL		NEER		Total Reportable Segments		Corp. and Other		Total Consolidated
	(millions)
Three Months Ended March 31, 2025

Equity in losses of equity method investees	$	—	$	(646)	$	(646)	$	—	$	(646)
Net loss attributable to noncontrolling interests	$	—	$	369	$	369	$	—	$	369
Capital expenditures, independent power and other investments and nuclear fuel purchases	$	2,392	$	5,543	$	7,935	$	7	$	7,942

March 31, 2025
Property, plant and equipment – net	$	77,427	$	64,633	$	142,060	$	163	$	142,223
Total assets	$	100,064	$	91,631	$	191,695	$	2,569	$	194,264
Investment in equity method investees	$	—	$	5,270	$	5,270	$	—	$	5,270



	FPL		NEER		Total Reportable Segments		Corp. and Other		Total Consolidated
	(millions)
Three Months Ended March 31, 2024

Equity in earnings of equity method investees	$	—	$	183	$	183	$	20	$	203
Net loss attributable to noncontrolling interests	$	—	$	331	$	331	$	—	$	331
Capital expenditures, independent power and other investments and nuclear fuel purchases	$	2,345	$	7,275	$	9,620	$	91	$	9,711

December 31, 2024
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

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