Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2026

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

The tables below present NEE's and FPL's gross derivative positions as of September 30, 2026 and December 31, 2025, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the condensed consolidated balance sheets.


	September 30, 2026
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	4,788	$	2,992	$	1,818	$	(6,543)	$	3,055
Interest rate contracts	$	—	$	3,391	$	—	$	(104)	3,287
Foreign currency contracts	$	—	$	56	$	—	$	(194)	(138)
Total derivative assets									$	6,204

FPL – commodity contracts	$	—	$	4	$	8	$	(3)	$	9

Liabilities:
NEE:
Commodity contracts	$	4,943	$	3,125	$	1,140	$	(6,492)	$	2,716
Interest rate contracts	$	—	$	107	$	—	$	(104)	3
Foreign currency contracts	$	—	$	273	$	—	$	(194)	79
Total derivative liabilities									$	2,798

FPL – commodity contracts	$	—	$	40	$	11	$	(3)	$	48

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	2,325
Noncurrent derivative assets(c)									3,879
Total derivative assets									$	6,204
Current derivative liabilities(d)									$	1,067

Noncurrent derivative liabilities									1,731
Total derivative liabilities									$	2,798

Net fair value by FPL balance sheet line item:
Current other assets									$	9


Current other liabilities									$	15
Noncurrent other liabilities									33
Total derivative liabilities									$	48

———————————————

(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 $58 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $93 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $100 million in margin cash collateral paid to counterparties.


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

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

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

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

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

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

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

———————————————

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

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

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

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

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy as of September 30, 2026 are as follows:


	Fair Value as of				Valuation	Significant				Weighted-
Transaction Type	September 30, 2026				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	615	$	327	Discounted cash flow	Forward price (per MWh)	$1	—	$172	$55
Forward contracts – gas	568		75		Discounted cash flow	Forward price (per MMBtu)	$1	—	$10	$3
Forward contracts – congestion	76		53		Discounted cash flow	Forward price (per MWh)	$(66)	—	$30	$—
Options – power	39		2		Option models	Implied correlations	59%	—	74%	71%
						Implied volatilities	32%	—	244%	96%
Options – primarily gas	59		64		Option models	Implied correlations	59%	—	100%	97%
						Implied volatilities	17%	—	93%	48%
Full requirements and unit contingent contracts	167		326		Discounted cash flow	Forward price (per MWh)	$16	—	$378	$93
						Customer migration rate(b)	—%	—	10%	1%
Forward contracts – other	294		293
Total	$	1,818	$	1,140

———————————————

(a)Unobservable inputs were weighted by volume.

(b)Applies only to full requirements contracts.

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

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

Significant Unobservable Input

Position

Impact on
Fair Value Measurement

Forward price

Purchase power/gas

Increase (decrease)

Sell power/gas

Decrease (increase)

Implied correlations

Purchase option

Decrease (increase)

Sell option

Increase (decrease)

Implied volatilities

Purchase option

Increase (decrease)

Sell option

Decrease (increase)

Customer migration rate

Sell power(a)

Decrease (increase)

———————————————

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

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

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


	Three Months Ended September 30,
	2026				2025
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of June 30 of prior period	$	755	$	(1)	$	557	$	(36)
Realized and unrealized gains (losses):
Included in operating revenues	(125)		—		379		—

Included in regulatory assets and liabilities	5		5		25		25
Purchases	45		—		66		—

Settlements	34		(7)		(103)		18
Issuances	(32)		—		(19)		—

Transfers in(a)	—		—		—		—
Transfers out(a)	(4)		—		—		—
Fair value of net derivatives based on significant unobservable inputs as of September 30	$	678	$	(3)	$	905	$	7
Gains (losses) included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	(145)	$	—	$	364	$	—

———————————————

(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.


	Nine Months Ended September 30,
	2026				2025
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of December 31 of prior period	$	682	$	32	$	387	$	34
Realized and unrealized gains (losses):
Included in operating revenues	(212)		—		745		—

Included in regulatory assets and liabilities	21		21		(61)		(61)
Purchases	370		—		137		—

Settlements	(40)		(56)		(231)		34
Issuances	(123)		—		(55)		—

Transfers in(a)	(20)		—		(16)		—
Transfers out(a)	—		—		(1)		—
Fair value of net derivatives based on significant unobservable inputs as of September 30	$	678	$	(3)	$	905	$	7
Gains included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	25	$	—	$	581	$	—

———————————————

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

Net notional volumes

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

September 30, 2026

December 31, 2025

Commodity Type

NEE

FPL

NEE

FPL

(millions)

Power

(259)

MWh

—

(249)

MWh

—

Natural gas

(1,063)

MMBtu

283

MMBtu

(1,087)

MMBtu

378

MMBtu

Oil

(30)

barrels

—

barrels

—

Not Designated as Hedging Instrument

Derivative [Line Items]

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

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(millions)

Commodity contracts(a) – operating revenues (including $79 unrealized losses, $352 unrealized gains, $205 unrealized gains and $288 unrealized gains, respectively)	$	(168)	$	347	$	111	$	438

Foreign currency contracts – interest expense (including $4 unrealized losses, $54 unrealized losses, $138 unrealized losses and $30 unrealized losses, respectively)	(5)		(56)		(186)		(40)

Interest rate contracts – interest expense (including $3,005 unrealized gains, $94 unrealized losses, $3,527 unrealized gains and $1,057 unrealized losses, respectively)	3,045		(88)		3,490		(889)
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	—		—		1		1
Foreign currency contracts	(1)		(1)		(2)		(2)
Total	$	2,871	$	202	$	3,414	$	(492)

———————————————

(a)For the three and nine months ended September 30, 2026, FPL recorded gains of approximately $9 million and $2 million, respectively, related to commodity contracts as regulatory liabilities on its condensed consolidated balance sheets. For the three and nine months ended September 30, 2025, FPL recorded approximately $25 million of gains and $79 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets.

- Definition

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

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