Rate Regulation – In February 2026, the Office of Public Counsel, Floridians Against Increased Rates, Inc. and, as a group, Florida Rising, Inc., Environmental Confederation of Southwest Florida, Inc. and League of United Latin American Citizens of Florida (collectively, the non-signatories) filed with the FPSC a joint motion for reconsideration and a joint request for oral argument, and filed notices of appeal with the Florida Supreme Court, in each case challenging the FPSC's final order approving the 2025 rate agreement. In April 2026, the FPSC denied substantially all of the non-signatories' joint motion for reconsideration, granting only a limited correction to expand on the discussion of FPL's performance under the Florida Energy Efficiency and Conservation Act in the final order. In May 2026, notices of appeal were filed with the Florida Supreme Court challenging the FPSC's order denying reconsideration of the FPSC's final order approving the 2025 rate agreement. In June 2026, the Florida Supreme Court consolidated the appeals into a single proceeding. The rate case docket will remain open pending resolution of the consolidated appeal before the Florida Supreme Court.

The use of RSM for the three and nine months ended September 30, 2026 is permitted by the 2025 rate agreement, and, for the prior year periods the use of reserve amortization was permitted by the 2021 rate agreement. The RSM reserve, which is authorized up to approximately $1.5 billion, after tax, over the term of the 2025 rate agreement, includes ITC amortization for battery storage projects placed in service in 2025, the remaining balance from FPL's previous reserve amortization mechanism as of January 1, 2026 and certain amounts related to deferred tax liabilities. In accordance with the terms of the 2025 rate agreement, RSM amortization is recorded as either an increase or decrease to noncurrent regulatory assets or liabilities, as applicable, on NEE’s and FPL’s condensed consolidated balance sheets. In accordance with the terms of the 2021 rate agreement, reserve amortization was recorded as either an increase or decrease to noncurrent regulatory assets on NEE's and FPL's condensed consolidated balance sheets. FPL files a twelve-month forecast with the FPSC each year which contains a regulatory ROE intended to be earned based on the best information FPL has at that time, assuming normal weather. This forecast establishes a targeted regulatory ROE.

In order to earn a targeted regulatory ROE in each reporting period, subject to conditions of the effective rate agreement, RSM amortization and reserve amortization, as applicable, are calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items is adjusted, in part, by the RSM amortization or reserve amortization, as applicable, to earn the targeted regulatory ROE. In certain periods, the RSM amortization or reserve amortization, as applicable, are reversed so as not to exceed the targeted regulatory ROE. During the three months ended September 30, 2026, FPL recorded the reversal of RSM amortization of approximately $172 million, after tax, which is reflected as an increase of $126 million in income taxes and an increase of $62 million in depreciation and amortization expense ($46 million after tax) in NEE and FPL’s condensed consolidated statements of income. During the nine months ended September 30, 2026, FPL recorded RSM amortization of approximately $24 million, after tax, which is reflected as a decrease of $24 million in income taxes in NEE and FPL’s condensed consolidated statements of income. During the three and nine months ended September 30, 2025, FPL recorded the reversal of reserve amortization of approximately $218 million and reserve amortization of $423 million, respectively, which are reflected as pre-tax depreciation and amortization expense on NEE and FPL’s condensed consolidated statements of income.

Storm Cost Recovery – In October 2026, Hurricane Isaias made landfall near the Florida panhandle causing damage to FPL's service territory. Although FPL has not finalized its storm restoration costs with respect to Hurricane Isaias, FPL's preliminary estimate of total recoverable storm restoration costs is in the range of approximately $450 million - $500 million. Storm restoration costs that exceed the amount in FPL’s storm reserve, which totaled approximately $119 million as of September 30, 2026, will be deferred and recorded as a regulatory asset on NEE’s and FPL’s balance sheets.

Under the 2025 rate agreement, future storm restoration costs are recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $5 for every 1,000 kWh of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs, inclusive of the costs to replenish the storm reserve, exceed the cap, FPL could request an increase to the $5 surcharge. Final storm restoration costs are subject to a prudence review by the FPSC. FPL intends to seek recovery of eligible storm restoration costs and replenishment of the storm reserve in accordance with the 2025 rate agreement.

Restricted Cash – As of September 30, 2026 and December 31, 2025, NEE had approximately $283 million ($40 million for FPL) and $194 million ($46 million for FPL), respectively, of restricted cash. 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 at NEER and restricted bond proceeds at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $29 million is netted against derivative assets and $100 million is netted against derivative liabilities as of September 30, 2026 and $50 million is netted against derivative assets and $81 million is netted against derivative liabilities as of December 31, 2025. See Note 2.

Income Taxes – Clean 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 clean energy tax credits for the nine months ended September 30, 2026 and 2025 of approximately $1,684 million ($169 million at FPL) and $766 million ($0 million at FPL), respectively, are reported in the cash received for income taxes – net within the supplemental disclosures of cash flow information on NEE's and FPL's condensed consolidated statements of cash flows. In connection with entering into the agreements to sell clean energy tax credits, NEECH provides certain indemnifications to the purchasers regarding the existence and qualifications of such credits. NEE has not recorded any material liability related to these indemnifications after considering the nature of the indemnifications and NEE’s experience in generating and utilizing clean 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.

Differential Membership Interests – As of September 30, 2026 and December 31, 2025, approximately $9,685 million and $10,654 million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relate to differential membership interests. For the three months ended September 30, 2026 and 2025, NEE recorded earnings of approximately $412 million and $309 million, respectively, and for the nine months ended September 30, 2026 and 2025 approximately $1,459 million and $1,120 million, respectively, associated with differential membership interests, which are reflected as net loss attributable to noncontrolling interests in NEE's condensed consolidated statements of income.

Project Minority Interests – In September 2026, certain subsidiaries of NextEra Energy Resources sold noncontrolling membership interests in entities that have ownership interests in wind generation, solar generation and battery storage facilities (see Note 7 - NEER) to third party investors for proceeds totaling $1,559 million. The project minority investors provide capital to the projects and receive a disproportionate share of the projects' earnings and cash flows during certain periods until they achieve a targeted return. NEE has the right to call certain third-party interests at specified amounts upon achievement of the targeted return or during specified periods. The earnings allocated to the project minority investors are reflected as a reduction of earnings attributable to NEE.

Redeemable Noncontrolling Interests – Certain of the agreements related to project minority and differential membership interests arrangements provide investors with redemption rights upon the occurrence of specified events, including, among others, events that would delay completion or result in the cancellation of an underlying project. As these potential redemptions are outside of NEER’s control, these balances were classified as redeemable noncontrolling interests on NEE's condensed consolidated balance sheet as of September 30, 2026. Substantially all of the contingencies associated with the September 30, 2026 balance are expected to be resolved in 2026 and 2027.

Disposal of a Business – In March 2026, a subsidiary of NEET sold an ownership interest, representing an approximately 50% economic interest, as part of a joint venture (transmission joint venture), consisting of a rate-regulated electric transmission asset located in California, for cash proceeds of approximately $287 million, subject to post-closing adjustments. A NEET subsidiary continues to operate the rate-regulated electric transmission asset included in the sale. In connection with the sale and extinguishment of the related debt, a net gain of approximately $133 million ($107 million after tax) was recorded in NEE's condensed consolidated statements of income for the nine months ended September 30, 2026. Approximately $253 million is included in gains on disposal of businesses/assets – net, offset by $120 million recorded as interest expense. Total assets of approximately $831 million, primarily property, plant and equipment and total liabilities of approximately $512 million, primarily long-term debt, were removed from NEE's balance sheet and an equity method investment of approximately $287 million was recorded as a result of the transaction. NEE's remaining interest, an approximately 50% economic interest, in the transmission joint venture is a noncontrolling interest based on the governance structure of the joint venture. The fair value of NEE's retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices.

Environmental Credits – In May 2026, the Financial Accounting Standards Board issued an accounting standards update related to environmental credits (such as renewable energy credits) and environmental credit obligations. The update provides recognition, measurement, presentation and disclosure requirements for all entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. The standards update will be effective for NEE and FPL beginning January 1, 2028. The requirements will be applied retrospectively with early adoption permitted. NEE and FPL are currently evaluating the effect of adopting this update on their consolidated financial statements.


	NEE				FPL
	September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
	(millions)
Electric plant in service and other property	$	183,745	$	170,129	$	100,116	$	94,837
Nuclear fuel	2,095		2,026		1,290		1,201
Construction work in progress	34,741		24,556		9,294		7,673
Property, plant and equipment, gross	220,581		196,711		110,700		103,711
Accumulated depreciation and amortization	(43,503)		(40,514)		(23,291)		(21,956)
Property, plant and equipment – net	$	177,078	$	156,197	$	87,409	$	81,755

During the three months ended September 30, 2026 and 2025, FPL recorded AFUDC of approximately $83 million and $60 million, respectively, including AFUDC – equity of $63 million and $46 million, respectively. During the nine months ended September 30, 2026 and 2025, FPL recorded AFUDC of approximately $223 million and $159 million, respectively, including AFUDC – equity of $171 million and $123 million, respectively. During the three months ended September 30, 2026 and 2025, NEER capitalized interest on construction projects of approximately $281 million and $179 million, respectively. During the nine months ended September 30, 2026 and 2025, NEER capitalized interest on construction projects of approximately $683 million and $477 million, respectively.