UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended~~September 30, 2017~~March 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________



Commission File Number	Exact name of registrants as specified in their charters, address of principal executive offices and registrants' telephone number	IRS Employer Identification Number
1-8841	NEXTERA ENERGY, INC.	59-2449419
2-27612	FLORIDA POWER & LIGHT COMPANY	59-0247775
	~~700 Universe Boulevard~~ ~~Juno Beach, Florida 33408~~ ~~(561) 694-4000~~

700 Universe Boulevard

Juno Beach, Florida33408

(561) 694-4000

State or other jurisdiction of incorporation or organization: Florida

Securities registered pursuant to Section 12(b) of the Act:



Registrants	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
NextEra Energy, Inc.	Common Stock, $0.01 Par Value	NEE	New York Stock Exchange
	4.872% Corporate Units	NEE.PRO	New York Stock Exchange
	5.279% Corporate Units	NEE.PRP	New York Stock Exchange

Florida Power & Light Company	None

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) have been subject to such filing requirements for the past 90 days.

~~NextEra Energy, Inc. Yes~~ þ No ¨ ~~Florida Power & Light Company Yes~~ þ No ¨

NextEra Energy, Inc. Yes☑ No ☐ Florida Power & Light Company Yes☑ No ☐

Indicate by check mark whether the registrants have submitted electronically ~~and posted on their corporate website, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation ~~S-T~~S‑T during the preceding 12 months.

~~NextEra Energy, Inc. Yes~~ þ No ¨ ~~Florida Power & Light Company Yes~~ þ No ¨

NextEra Energy, Inc. Yes☑ No ☐ Florida Power & Light Company Yes☑ No ☐

Indicate by check mark whether the registrants are a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. ~~See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Securities Exchange Act of 1934.~~



~~NextEra Energy, Inc.~~	~~Large Accelerated Filer~~þ	~~Accelerated Filer~~¨	~~Non-Accelerated Filer~~¨	~~Smaller Reporting Company~~¨	~~Emerging Growth Company~~¨
~~Florida Power & Light Company~~	~~Large Accelerated Filer~~¨	~~Accelerated Filer~~ ¨	~~Non-Accelerated Filer~~þ	~~Smaller Reporting Company~~¨	~~Emerging Growth Company~~¨

NextEra Energy, Inc. Large Accelerated Filer☑ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

Florida Power & Light Company Large Accelerated Filer ☐ Accelerated Filer ☐Non-Accelerated Filer☑ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934. o☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨☐ No þ☑

Number of shares of NextEra Energy, Inc. common stock, ~~$0.01~~$0.01 par value, outstanding ~~as of September 30, 2017: 470,397,581~~at March 31, 2020: 489,450,050

Number of shares of Florida Power & Light Company common stock, without par value, outstanding ~~as of September 30, 2017,~~at March 31, 2020, all of which were held, beneficially and of record, by NextEra Energy, Inc.: 1,000

This combined Form 10-Q represents separate filings by NextEra Energy, Inc. and Florida Power & Light Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Florida Power & Light Company makes no representations as to the information relating to NextEra Energy, Inc.'s other operations.

Florida Power & Light Company meets the conditions set forth in General Instruction H.(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

DEFINITIONS

Acronyms and defined terms used in the text include the following:



Term	Meaning
AFUDC	allowance for funds used during construction
AFUDC - equity	equity component of AFUDC
AOCI	accumulated other comprehensive income
~~capacity clause~~	~~capacity cost recovery clause, as established by the FPSC~~
Duane Arnold	Duane Arnold Energy Center
~~EPA~~	~~U.S. Environmental Protection Agency~~
~~FASB~~	~~Financial Accounting Standards Board~~
FERC	U.S. Federal Energy Regulatory Commission
Florida Southeast Connection	Florida Southeast Connection, LLC, a wholly owned ~~NEER~~NextEra Energy Resources subsidiary
FPL	Florida Power & Light Company
FPSC	Florida Public Service Commission
fuel clause	fuel and purchased power cost recovery clause, as established by the FPSC
GAAP	generally accepted accounting principles in the U.S.
Gulf Power	Gulf Power Company
ISO	independent system operator
ITC	investment tax credit
kWh	kilowatt-hour(s)
Management's Discussion	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
MMBtu	One million British thermal units
MW	megawatt(s)
MWh	megawatt-hour(s)
NEE	NextEra Energy, Inc.
NEECH	NextEra Energy Capital Holdings, Inc.
NEER	a segment comprised of NextEra Energy Resources ~~LLC~~and NEET
NEET	NextEra Energy Transmission, LLC
NEP	NextEra Energy Partners, LP
NEP OpCo	NextEra Energy Operating Partners, LP
net generating capacity	net ownership interest in plant(s) capacity
net generation	net ownership interest in plant(s) generation
NextEra Energy Resources	NextEra Energy Resources, LLC
Note __	Note __ to condensed consolidated financial statements
NRC	U.S. Nuclear Regulatory Commission
O&M expenses	other operations and maintenance expenses in the condensed consolidated statements of income
OCI	other comprehensive income
OTC	over-the-counter
OTTI	other than temporary impairment
PTC	production tax credit
PV	photovoltaic
Recovery Act	American Recovery and Reinvestment Act of 2009, as amended
regulatory ROE	return on common equity as determined for regulatory purposes
Sabal Trail	Sabal Trail Transmission, LLC, an entity in which a ~~wholly owned NEER~~NextEra Energy Resources' subsidiary has a 42.5% ownership interest
Seabrook	Seabrook Station
SEC	U.S. Securities and Exchange Commission
U.S.	United States of America

NEE, FPL, NEECH, NextEra Energy Resources and ~~NEER~~NEET each has subsidiaries and affiliates with names that may include NextEra Energy, FPL, NextEra Energy Resources, NextEra Energy Transmission, NextEra, FPL Group, FPL ~~Group Capital, FPL~~ Energy, FPLE, NEP and similar references. For convenience and simplicity, in this report the terms NEE, FPL, NEECH, NextEra Energy Resources, NEET and NEER are sometimes used as abbreviated references to specific subsidiaries, affiliates or groups of subsidiaries or affiliates. The precise meaning depends on the context.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, strategies, future events or performance (often, but not always, through the use of words or phrases such as may result, are expected to, will continue, is anticipated, ~~aim,~~ believe, will, could, should, would, estimated, may, plan, potential, future, projection, goals, target, outlook, predict and intend or words of similar meaning) are not statements of historical facts and may be forward looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could have a significant impact on NEE's and/or FPL's operations and financial results, and could cause NEE's and/or FPL's actual results to differ materially from those contained or implied in forward-looking statements made by or on behalf of NEE and/or FPL in this combined Form 10-Q, in presentations, on their respective websites, in response to questions or otherwise.

Regulatory, Legislative and Legal Risks

NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected by the extensive regulation of their business.

NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected if they are unable to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise.

Regulatory decisions that are important to NEE and FPL may be materially adversely affected by political, regulatory and economic factors.

FPL's use of derivative instruments could be subject to prudence challenges and, if found imprudent, could result in disallowances of cost recovery for such use by the FPSC.

Any reductions or modifications to, or the elimination of, governmental incentives or policies that support utility scale renewable energy, including, but not limited to, tax laws, policies and incentives, renewable portfolio standards or feed-in tariffs, ~~or the EPA's final rule under Section 111(d) of the Clean Air Act,~~ or the imposition of additional taxes or other assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy projects, NEER abandoning the development of renewable energy projects, a loss of NEER's investments in renewable energy projects and reduced project returns, any of which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected as a result of new or revised laws, regulations, interpretations or ~~other~~ballot or regulatory initiatives.

NEE and FPL are subject to numerous environmental laws, regulations and other standards that may result in capital expenditures, increased operating costs and various liabilities, and may require NEE and FPL to limit or eliminate certain operations.

NEE's and FPL's business could be negatively affected by federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions.

Extensive federal regulation of the operations and businesses of NEE and FPL exposes NEE and FPL to significant and increasing compliance costs and may also expose them to substantial monetary penalties and other sanctions for compliance failures.

Changes in tax laws, guidance or policies, including but not limited to changes in corporate income tax rates, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected due to adverse results of litigation.

Development and Operational Risks

NEE's and FPL's business, financial condition, results of operations and prospects could suffer if NEE and FPL do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget.

NEE and FPL ~~may~~ face risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede their development and operating activities.

The operation and maintenance of NEE's and FPL's electric generation, transmission and distribution facilities, gas infrastructure facilities, retail gas distribution system in Florida and other facilities are subject to many operational risks, the consequences of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

NEE's and FPL's business, financial condition, results of operations and prospects may be negatively affected by a lack of growth or slower growth in the number of customers or in customer usage.

NEE's and FPL's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather.

Threats of terrorism and catastrophic events that could result from terrorism, ~~cyber attacks,~~cyberattacks, or individuals and/or groups attempting to disrupt NEE's and FPL's business, or the businesses of third parties, may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

The ability of NEE and FPL to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NEE's and FPL's insurance coverage does not provide protection against all significant losses.

NEE invests in gas and oil producing and transmission assets through NEER’s gas infrastructure business. The gas infrastructure business is exposed to fluctuating market prices of natural gas, natural gas liquids, oil and other energy commodities. A prolonged period of low gas and oil prices could impact NEER’s gas infrastructure business and cause NEER to delay or cancel certain gas infrastructure projects and ~~for~~could result in certain ~~existing~~ projects ~~to be~~becoming impaired, which could materially adversely affect NEE's results of operations.

If supply costs necessary to provide NEER's full energy and capacity requirement services are not favorable, operating costs could increase and materially adversely affect NEE's business, financial condition, results of operations and prospects.

Due to the potential for significant volatility in market prices for fuel, electricity and renewable and other energy commodities, NEER's inability or failure to manage properly or hedge effectively the commodity risks within its portfolios could materially adversely affect NEE's business, financial condition, results of operations and prospects.

Reductions in the liquidity of energy markets may restrict the ability of NEE to manage its operational risks, which, in turn, could negatively affect NEE's results of operations.

NEE's and FPL's hedging and trading procedures and associated risk management tools may not protect against significant losses.

If price movements significantly or persistently deviate from historical behavior, NEE's and FPL's risk management tools associated with their hedging and trading procedures may not protect against significant losses.

If power transmission or natural gas, nuclear fuel or other commodity transportation facilities are unavailable or disrupted, ~~FPL's and NEER's~~the ability for subsidiaries of NEE, including FPL, to sell and deliver power or natural gas may be limited.

NEE and FPL are subject to credit and performance risk from customers, hedging counterparties and vendors.

NEE and FPL could recognize financial losses or a reduction in operating cash flows if a counterparty fails to perform or make payments in accordance with the terms of derivative contracts or if NEE or FPL is required to post margin cash collateral under derivative contracts.

NEE and FPL are highly dependent on sensitive and complex information technology systems, and any failure or breach of those systems could have a material adverse effect on their business, financial condition, results of operations and prospects.

NEE's and FPL's retail businesses are subject to the risk that sensitive customer data may be compromised, which could result in a material adverse impact to their reputation and/or have a material adverse effect on the business, financial condition, results of operations and prospects of NEE and FPL.

NEE and FPL could recognize financial losses as a result of volatility in the market values of derivative instruments and limited liquidity in OTC markets.

NEE and FPL may be materially adversely affected by negative publicity.

NEE's and FPL's business, financial condition, results of operations and prospects may be ~~materially~~ adversely affected if ~~FPL is~~they are unable to maintain, negotiate or renegotiate franchise agreements on acceptable terms with municipalities and counties in Florida.

NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected by work strikes or stoppages and increasing personnel costs.

NEE's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the ~~power~~energy industry.

NEP’s acquisitions may not be completed and, even if completed, NEE may not realize the anticipated benefits of any acquisitions, which could materially adversely affect NEE’s business, financial condition, results of operations and prospects.

Nuclear Generation Risks

The operation and maintenance of NEE's and FPL's nuclear generation facilities involve environmental, health and financial risks that could result in fines or the closure of the facilities and in increased costs and capital expenditures.

In the event of an incident at any nuclear generation facility in the U.S. or at certain nuclear generation facilities in Europe, NEE and FPL could be assessed significant retrospective assessments and/or retrospective insurance premiums as a result of their participation in a secondary financial protection system and nuclear insurance mutual companies.

NRC orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require NEE and FPL to incur substantial operating and capital expenditures at their nuclear generation facilities and/or result in reduced revenues.

The inability to operate any of NEE's or FPL's nuclear generation units through the end of their respective operating licenses, or in the case of Duane Arnold through expected shutdown, could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

NEE's and FPL's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, and for other purposes. If planned outages last longer than anticipated or if there are unplanned outages, NEE's and FPL's results of operations and financial condition could be materially adversely affected.

Liquidity, Capital Requirements and Common Stock Risks

Disruptions, uncertainty or volatility in the credit and capital markets, among other factors, may negatively affect NEE's and FPL's ability to fund their liquidity and capital needs and to meet their growth objectives, and can also materially adversely affect the results of operations and financial condition of NEE and FPL.

NEE's, NEECH's and FPL's inability to maintain their current credit ratings may materially adversely affect NEE's and FPL's liquidity and results of operations, limit the ability of NEE and FPL to grow their business, and increase interest costs.

NEE's and FPL's liquidity may be impaired if their credit providers are unable to fund their credit commitments to the companies or to maintain their current credit ratings.

Poor market performance and other economic factors could affect NEE's defined benefit pension plan's funded status, which may materially adversely affect NEE's and FPL's business, financial condition, liquidity and results of operations and prospects.

Poor market performance and other economic factors could adversely affect the asset values of NEE's and FPL's nuclear decommissioning funds, which may materially adversely affect NEE's and FPL's liquidity, financial condition and results of operations.

Certain of NEE's investments are subject to changes in market value and other risks, which may materially adversely affect NEE's liquidity, financial condition and results of operations.

NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to NEE.

NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if NEE is required to perform under guarantees of obligations of its subsidiaries.

NEP may not be able to access sources of capital on commercially reasonable terms, which would have a material adverse effect on its ability to consummate future acquisitions and on the value of NEE’s limited partner interest in NEP OpCo.

Disruptions, uncertainty or volatility in the credit and capital markets may exert downward pressure on the market price of NEE's common stock.

Coronavirus Pandemic Risks

The coronavirus pandemic may have a material adverse impact on NEE’s and FPL's business, financial condition, liquidity and results of operations.

These factors should be read together with the risk factors included in Part I, Item 1A. Risk Factors in NEE's and FPL's Annual Report on Form 10-K for the year ended December 31, ~~2016 (2016~~2019 (2019 Form 10-K), and Part II, Item 1A. Risk Factors in this Form 10-Q, and investors should refer to ~~that section~~those sections of the ~~2016~~2019 Form ~~10-K.~~10-K and this Form 10-Q. Any forward-looking statement speaks only as of the date on which such statement is made, and NEE and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.

Website Access to SEC Filings.NEE and FPL make their SEC filings, including the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, available free of charge on NEE's internet website, www.nexteraenergy.com, as soon as reasonably practicable after those documents are electronically filed with or furnished to the SEC. The information and materials available on NEE's website (or any of its subsidiaries' or affiliates' websites) are not incorporated by reference into this combined Form 10-Q. ~~The SEC maintains an internet website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC at www.sec.gov.~~

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions, except per share amounts)

(unaudited)



	Three Months Ended March 31,
	2020			2019
OPERATING REVENUES	$	4,613		$	4,075
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange	821			967
Other operations and maintenance	830			815
Depreciation and amortization	848			772
Gains on disposal of businesses/assets - net	(273		)	(26		)
Taxes other than income taxes and other - net	406			412
Total operating expenses - net	2,632			2,940
OPERATING INCOME	1,981			1,135
OTHER INCOME (DEDUCTIONS)
Interest expense	(1,311		)	(714		)
Equity in earnings (losses) of equity method investees	(390		)	16
Allowance for equity funds used during construction	22			26
Interest income	13			12
Gains on disposal of investments and other property - net	24			23
Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds - net	(328		)	117
Other net periodic benefit income	52			51
Other - net	10			14
Total other income (deductions) - net	(1,908		)	(455		)
INCOME BEFORE INCOME TAXES	73			680
INCOME TAX EXPENSE (BENEFIT)	(235		)	74
NET INCOME	308			606
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	113			74
NET INCOME ATTRIBUTABLE TO NEE	$	421		$	680
Earnings per share attributable to NEE:
Basic	$	0.86		$	1.42
Assuming dilution	$	0.86		$	1.41

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
OPERATING REVENUES $ 4,808
$ 4,805
$ 13,185
$ 12,457
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange 1,176
1,217
3,093
3,105
Other operations and maintenance 769
833
2,400
2,474
Merger 2
123
17
129
Depreciation and amortization 1,070
983
2,576
2,262
Gains on disposal of a business/assets - net (5 ) (4 ) (1,106 ) (257 )
Taxes other than income taxes and other - net 397
374
1,115
1,062
Total operating expenses - net 3,409
3,526
8,095
8,775
OPERATING INCOME 1,399
1,279
5,090
3,682
OTHER INCOME (DEDUCTIONS)
Interest expense (381 ) (369 ) (1,171 ) (1,480 )
Benefits associated with differential membership interests - net 67
59
311
220
Equity in earnings of equity method investees 56
70
153
147
Allowance for equity funds used during construction 21
20
68
62
Interest income 20
23
59
61
Gains on disposal of investments and other property - net 15
9
64
36
Revaluation of contingent consideration —
101
—
118
Other - net 23
15
7
21
Total other deductions - net (179 ) (72 ) (509 ) (815 )
INCOME BEFORE INCOME TAXES 1,220
1,207
4,581
2,867
INCOME TAXES 364
418
1,329
879
NET INCOME 856
789
3,252
1,988
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 9

36

29

42
NET INCOME ATTRIBUTABLE TO NEE $ 847
$ 753
$ 3,223

$ 1,946
Earnings per share attributable to NEE:
Basic $ 1.80
$ 1.63
$ 6.88
$ 4.21
Assuming dilution $ 1.79
$ 1.62
$ 6.83
$ 4.19
Dividends per share of common stock $ 0.9825
$ 0.87
$ 2.9475
$ 2.61
Weighted-average number of common shares outstanding:
Basic 469.4
463.3
468.3
461.7
Assuming dilution 473.5
466.0
472.0
464.7

~~This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the~~ ~~2016~~ ~~Form 10-K.~~

~~NEXTERA ENERGY, INC.~~

~~CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

~~(millions)~~

~~(unaudited)~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
NET INCOME $ 856
$ 789
$ 3,252
$ 1,988
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive income (loss) to net income (net of $4, $3, $9 and $26 tax expense, respectively) 10
17
24
53
Net unrealized gains (losses) on available for sale securities:

Net unrealized gains on securities still held (net of $23, $23, $68 and $42 tax expense, respectively) 31
31
91
56
Reclassification from accumulated other comprehensive income (loss) to net income (net of $4, $2, $15 and $6 tax benefit, respectively) (6 ) (2 ) (23 ) (8 )
Defined benefit pension and other benefits plans (net of less than $1 tax benefit, $4 tax expense and $4 tax benefit, respectively) (1 ) —
6
(7 )
Net unrealized gains (losses) on foreign currency translation (net of less than $1, $1 and $1 tax expense and $2 tax benefit, respectively) 10
(9 ) 30
19
Other comprehensive income (loss) related to equity method investee (net of less than $1 tax expense, $0, less than $1 tax expense and $3 tax benefit, respectively) 1
3
1
(1 )
Total other comprehensive income, net of tax 45
40
129
112
COMPREHENSIVE INCOME 901
829
3,381
2,100
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 9
30
40
22
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE $ 892
$ 799
$ 3,341
$ 2,078

~~This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the~~ ~~2016~~ ~~Form 10-K.~~

~~NEXTERA ENERGY, INC.~~

~~CONDENSED CONSOLIDATED BALANCE SHEETS~~

~~(millions, except par value)~~

~~(unaudited)~~

September 30,
2017 December 31,
2016
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property $ 84,045
$ 80,150
Nuclear fuel 2,011
2,131
Construction work in progress 6,492
4,732
Accumulated depreciation and amortization (21,460 ) (20,101 )
Total property, plant and equipment - net ($14,186 and $14,632 related to VIEs, respectively) 71,088
66,912
CURRENT ASSETS

Cash and cash equivalents 1,381
1,292
Customer receivables, net of allowances of $9 and $5, respectively 2,147
1,784
Other receivables 603
655
Materials, supplies and fossil fuel inventory 1,352
1,289
Regulatory assets 551
524
Derivatives 442
885
Assets held for sale —
452
Other 551
528
Total current assets 7,027
7,409
OTHER ASSETS

Special use funds 5,894
5,434
Other investments ($474 and $479 related to a VIE, respectively) 2,983
2,482
Prepaid benefit costs 1,217
1,177
Regulatory assets ($53 and $107 related to a VIE, respectively) 3,290
1,894
Derivatives 1,546
1,350
Other 3,736
3,335
Total other assets 18,666
15,672
TOTAL ASSETS $ 96,781
$ 89,993
CAPITALIZATION

Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 470 and 468, respectively) $ 5
$ 5
Additional paid-in capital 9,046
8,948
Retained earnings 17,299
15,458
Accumulated other comprehensive income (loss) 48
(70 )
Total common shareholders' equity 26,398
24,341
Noncontrolling interests 923
990
Total equity 27,321
25,331
Long-term debt ($5,909 and $5,080 related to VIEs, respectively) 30,345
27,818
Total capitalization 57,666
53,149
CURRENT LIABILITIES

Commercial paper 2,074
268
Other short-term debt 255
150
Current maturities of long-term debt 2,285
2,604
Accounts payable 2,256
3,447
Customer deposits 449
470
Accrued interest and taxes 873
480
Derivatives 257
404
Accrued construction-related expenditures 921
1,120
Regulatory liabilities 157
299
Liabilities associated with assets held for sale —
451
Other 2,077
1,226
Total current liabilities 11,604
10,919
OTHER LIABILITIES AND DEFERRED CREDITS

Asset retirement obligations 2,882
2,736
Deferred income taxes 12,563
11,101
Regulatory liabilities 4,895
4,906
Derivatives 514
477
Deferral related to differential membership interests - VIEs 4,542
4,656
Other 2,115
2,049
Total other liabilities and deferred credits 27,511
25,925
COMMITMENTS AND CONTINGENCIES

TOTAL CAPITALIZATION AND LIABILITIES $ 96,781
$ 89,993

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2016~~2019 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~COMPREHENSIVE INCOME

(millions)

(unaudited)

Nine Months Ended
September 30,
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,252
$ 1,988
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 2,576
2,262
Nuclear fuel and other amortization 210
275
Unrealized losses on marked to market derivative contracts - net 45
369
Foreign currency transaction losses (gains) (23 ) 99
Deferred income taxes 1,316
766
Cost recovery clauses and franchise fees 61
111
Acquisition of purchased power agreement (258 ) —
Benefits associated with differential membership interests - net (311 ) (220 )
Gains on disposal of a business/assets - net (1,170 ) (291 )
Recoverable storm-related costs (334 ) (17 )
Other - net 106
(161 )
Changes in operating assets and liabilities:
Current assets (544 ) (204 )
Noncurrent assets (77 ) (17 )
Current liabilities 299
362
Noncurrent liabilities 12
(28 )
Net cash provided by operating activities 5,160
5,294
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL (3,676 ) (2,976 )
Independent power and other investments of NEER (4,678 ) (4,610 )
Nuclear fuel purchases (175 ) (194 )
Other capital expenditures and other investments (58 ) (149 )
Proceeds from sale of the fiber-optic telecommunications business 1,482
—
Sale of independent power and other investments of NEER 159
395
Proceeds from sale or maturity of securities in special use funds and other investments 2,059
2,635
Purchases of securities in special use funds and other investments (2,146 ) (2,711 )
Proceeds from sales of noncontrolling interests in NEP —
645
Other - net 198
(18 )
Net cash used in investing activities (6,835 ) (6,983 )
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt 5,196
4,644
Retirements of long-term debt (3,892 ) (2,654 )
Proceeds from differential membership investors 340
328
Net change in commercial paper 1,806
254
Proceeds from other short-term debt 200
500
Repayments of other short-term debt (2 ) (362 )
Issuances of common stock - net 36
528
Dividends on common stock (1,382 ) (1,205 )
Other - net (538 ) (234 )
Net cash provided by financing activities 1,764
1,799
Net increase in cash and cash equivalents 89
110
Cash and cash equivalents at beginning of period 1,292
571
Cash and cash equivalents at end of period $ 1,381
$ 681
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions $ 2,036
$ 2,655
Decrease (increase) in property, plant and equipment - net as a result of cash grants primarily under the Recovery Act $ (145 ) $ 403
Increase in property, plant and equipment - net as a result of a settlement/noncash exchange $ (92 ) $ (70 )
Proceeds from differential membership investors used to reduce debt $ —
$ 100



	Three Months Ended March 31,
	2020			2019
NET INCOME	$	308		$	606
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive income (loss) to net income (net of $1 tax benefit and $3 tax expense, respectively)	2			10
Net unrealized gains (losses) on available for sale securities:
Net unrealized gains (losses) on securities still held (net of $4 tax benefit and $3 tax expense, respectively)	(8		)	8
Reclassification from accumulated other comprehensive income (loss) to net income (net of less than $1 and $1 tax expense, respectively)	(1		)	2
Defined benefit pension and other benefits plans:
Net unrealized gain (loss) and unrecognized prior service benefit (cost) (net of $16 tax benefit)	—			(52		)
Reclassification from accumulated other comprehensive income (loss) to net income (net of less than $1 and less than $1 tax benefit, respectively)	3			(1		)
Net unrealized gains (losses) on foreign currency translation	(35		)	10
Other comprehensive income (loss) related to equity method investees (net of less than $1 tax benefit)	—			(1		)
Total other comprehensive loss, net of tax	(39		)	(24		)
IMPACT OF DISPOSAL OF A BUSINESS (NET OF $19 TAX BENEFIT)	10			—
COMPREHENSIVE INCOME	279			582
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	119			74
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE	$	398		$	656

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2016~~2019 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED ~~STATEMENTS OF EQUITY~~BALANCE SHEETS

~~(millions)~~(millions, except par value)

(unaudited)

Common Stock
Additional
Paid-In
Capital

Accumulated
Other
Comprehensive
Income
(Loss)

Retained
Earnings

Total
Common
Shareholders'
Equity

Non-
controlling
Interests

Total
Equity
Shares
Aggregate
Par Value

Balances, December 31, 2016 468
$ 5
$ 8,948
$ (70 ) $ 15,458
$ 24,341
$ 990
$ 25,331
Net income —
—
—
—
3,223
3,223
29

Issuances of common stock, net of issuance cost of less than $1 2
—
24
—
—
24
—

Share-based payment activity —
—
77
—
—
77
—

Dividends on common stock —
—
—
—
(1,382 ) (1,382 ) —

Other comprehensive income —
—
—
118
—
118
11

Sale of NEER assets to NEP —
—
—
—
—
—
(17 )
Distributions to noncontrolling interests —
—
—
—
—
—
(64 )
Other —
—
(3 ) —
—
(3 ) (26 )
Balances, September 30, 2017 470
$ 5
$ 9,046
$ 48
$ 17,299
$ 26,398
$ 923
$ 27,321



	March 31, 2020			December 31, 2019
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property	$	97,717		$	96,093
Nuclear fuel	1,839			1,755
Construction work in progress	10,201			9,330
Accumulated depreciation and amortization	(25,884		)	(25,168		)
Total property, plant and equipment - net ($11,916 and $11,893 related to VIEs, respectively)	83,873			82,010
CURRENT ASSETS
Cash and cash equivalents	3,335			600
Customer receivables, net of allowances of $19 and $19, respectively	2,068			2,282
Other receivables	553			525
Materials, supplies and fossil fuel inventory	1,371			1,328
Regulatory assets	349			335
Derivatives	994			762
Other	1,055			1,576
Total current assets	9,725			7,408
OTHER ASSETS
Special use funds	6,113			6,954
Investment in equity method investees	6,862			7,453
Prepaid benefit costs	1,471			1,437
Regulatory assets	3,246			3,287
Derivatives	1,936			1,624
Goodwill	4,201			4,204
Other	3,210			3,314
Total other assets	27,039			28,273
TOTAL ASSETS	$	120,637		$	117,691
CAPITALIZATION
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 489 and 489, respectively)	$	5		$	5
Additional paid-in capital	11,668			11,970
Retained earnings	24,922			25,199
Accumulated other comprehensive loss	(192		)	(169		)
Total common shareholders' equity	36,403			37,005
Noncontrolling interests ($4,467 and $4,350 related to VIEs, respectively)	4,472			4,355
Total equity	40,875			41,360
Redeemable noncontrolling interests	238			487
Long-term debt ($490 and $498 related to VIEs, respectively)	41,116			37,543
Total capitalization	82,229			79,390
CURRENT LIABILITIES
Commercial paper	1,576			2,516
Other short-term debt	2,025			400
Current portion of long-term debt ($27 and $27 related to VIEs, respectively)	2,489			2,124
Accounts payable	3,350			3,631
Customer deposits	502			499
Accrued interest and taxes	711			558
Derivatives	448			344
Accrued construction-related expenditures	887			1,152
Regulatory liabilities	312			320
Other	1,422			2,309
Total current liabilities	13,722			13,853
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	3,479			3,457
Deferred income taxes	8,082			8,361
Regulatory liabilities	9,282			9,936
Derivatives	1,856			863
Other	1,987			1,831
Total other liabilities and deferred credits	24,686			24,448
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	120,637		$	117,691

Common Stock
Additional
Paid-In
Capital

Accumulated
Other
Comprehensive
Income
(Loss)

Retained
Earnings

Total
Common
Shareholders'
Equity

Non-
controlling
Interests

Total
Equity
Shares
Aggregate
Par Value

Balances, December 31, 2015 461
$ 5
$ 8,596
$ (167 ) $ 14,140
$ 22,574
$ 538
$ 23,112
Net income —
—
—
—
1,946
1,946
42

Issuances of common stock, net of issuance cost of less than $1 5
—
523
—
—
523
—

Share-based payment activity 1
—
96
—
—
96
—

Dividends on common stock —
—
—
—
(1,205 ) (1,205 ) —

Premium on equity units —
—
(200 ) —
—
(200 ) —

Other comprehensive income (loss) —
—
—
131
—
131
(19 )
Sale of NEER assets to NEP —
—
49
—
—
49
440

Distributions to noncontrolling interests —
—
—
—
—
—
(37 )
Other —
—
(25 ) —
18
(7 ) (2 )
Balances, September 30, 2016 467
$ 5
$ 9,039
$ (36 ) $ 14,899
$ 23,907
$ 962
$ 24,869

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2016~~2019 Form 10-K.

~~FLORIDA POWER & LIGHT COMPANY~~

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF ~~INCOME~~CASH FLOWS

(millions)

~~(unaudited)~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
OPERATING REVENUES $ 3,477
$ 3,283
$ 9,095
$ 8,337
OPERATING EXPENSES (INCOME)

Fuel, purchased power and interchange 1,036
1,045
2,696
2,556
Other operations and maintenance 362
403
1,137
1,203
Depreciation and amortization 704
587
1,514
1,207
Taxes other than income taxes and other - net 353
327
975
908
Total operating expenses - net 2,455
2,362
6,322
5,874
OPERATING INCOME 1,022
921
2,773
2,463
OTHER INCOME (DEDUCTIONS)

Interest expense (121 ) (114 ) (360 ) (342 )
Allowance for equity funds used during construction 20
17
55
55
Other - net 1
—
2
3
Total other deductions - net (100 ) (97 ) (303 ) (284 )
INCOME BEFORE INCOME TAXES 922
824
2,470
2,179
INCOME TAXES 356
309
933
823
NET INCOME^(a)
$ 566
$ 515
$ 1,537
$ 1,356

~~_______________________~~


~~(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~~ ~~2016~~ ~~Form 10-K.~~

~~FLORIDA POWER & LIGHT COMPANY~~

~~CONDENSED CONSOLIDATED BALANCE SHEETS~~

~~(millions, except share amount)~~

(unaudited)

September 30,
2017 December 31,
2016
ELECTRIC UTILITY PLANT AND OTHER PROPERTY
Plant in service and other property $ 46,394
$ 44,966
Nuclear fuel 1,260
1,308
Construction work in progress 3,341
2,039
Accumulated depreciation and amortization (12,730 ) (12,304 )
Total electric utility plant and other property - net 38,265
36,009
CURRENT ASSETS

Cash and cash equivalents 8
33
Customer receivables, net of allowances of $5 and $2, respectively 1,212
768
Other receivables 225
148
Materials, supplies and fossil fuel inventory 903
851
Regulatory assets 551
524
Derivatives 7
209
Other 176
213
Total current assets 3,082
2,746
OTHER ASSETS

Special use funds 3,963
3,665
Prepaid benefit costs 1,332
1,301
Regulatory assets ($53 and $107 related to a VIE, respectively) 2,971
1,573
Other 302
207
Total other assets 8,568
6,746
TOTAL ASSETS $ 49,915
$ 45,501
CAPITALIZATION

Common stock (no par value, 1,000 shares authorized, issued and outstanding) $ 1,373
$ 1,373
Additional paid-in capital 8,291
8,332
Retained earnings 7,682
6,875
Total common shareholder's equity 17,346
16,580
Long-term debt ($74 and $144 related to a VIE, respectively) 10,055
9,705
Total capitalization 27,401
26,285
CURRENT LIABILITIES

Commercial paper 1,079
268
Other short-term debt 250
150
Current maturities of long-term debt 463
367
Accounts payable 764
837
Customer deposits 446
466
Accrued interest and taxes 637
240
Accrued construction-related expenditures 218
262
Regulatory liabilities 145
294
Other 1,576
497
Total current liabilities 5,578
3,381
OTHER LIABILITIES AND DEFERRED CREDITS

Asset retirement obligations 2,001
1,919
Deferred income taxes 9,554
8,541
Regulatory liabilities 4,855
4,893
Other 526
482
Total other liabilities and deferred credits 16,936
15,835
COMMITMENTS AND CONTINGENCIES

TOTAL CAPITALIZATION AND LIABILITIES $ 49,915
$ 45,501



	Three Months Ended March 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	308		$	606
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	848			772
Nuclear fuel and other amortization	74			90
Unrealized losses on marked to market derivative contracts – net	563			386
Foreign currency transaction gains	(39		)	(5		)
Deferred income taxes	(180		)	220
Cost recovery clauses and franchise fees	(10		)	(41		)
Equity in losses (earnings) of equity method investees	390			(16		)
Distributions of earnings from equity method investees	100			84
Gains on disposal of businesses, assets and investments – net	(297		)	(49		)
Other - net	311			(112		)
Changes in operating assets and liabilities:
Current assets	142			283
Noncurrent assets	(56		)	(123		)
Current liabilities	(245		)	(514		)
Noncurrent liabilities	(15		)	16
Net cash provided by operating activities	1,894			1,597
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL	(1,394		)	(1,104		)
Acquisition and capital expenditures of Gulf Power	(340		)	(4,551		)
Independent power and other investments of NEER	(1,492		)	(1,162		)
Nuclear fuel purchases	(57		)	(97		)
Other capital expenditures, acquisitions and other investments	(1		)	(115		)
Proceeds from sale or maturity of securities in special use funds and other investments	1,081			966
Purchases of securities in special use funds and other investments	(1,084		)	(1,019		)
Other - net	152			137
Net cash used in investing activities	(3,135		)	(6,945		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	4,354			2,768
Retirements of long-term debt	(312		)	(166		)
Net change in commercial paper	(940		)	(448		)
Proceeds from other short-term debt	1,625			—
Repayments of other short-term debt	—			(50		)
Payments from (to) related parties under a cash sweep and credit support agreement – net	48			(24		)
Issuances of common stock/equity units - net	(57		)	20
Dividends on common stock	(685		)	(598		)
Other - net	(72		)	(75		)
Net cash provided by financing activities	3,961			1,427
Effects of currency translation on cash, cash equivalents and restricted cash	6			9
Net increase (decrease) in cash, cash equivalents and restricted cash	2,726			(3,912		)
Cash, cash equivalents and restricted cash at beginning of period	1,108			5,253
Cash, cash equivalents and restricted cash at end of period	$	3,834		$	1,341
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	3,194		$	1,874
Increase in property, plant and equipment related to an acquisition	$	353		$	—
Decrease in joint venture investments related to an acquisition	$	145		$	—

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2016~~2019 Form 10-K.

~~FLORIDA POWER & LIGHT COMPANY~~

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~EQUITY

~~(millions)~~(millions, except per share amounts)

(unaudited)

Nine Months Ended
September 30,
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,537
$ 1,356
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization 1,514
1,207
Nuclear fuel and other amortization 153
167
Deferred income taxes 987
569
Cost recovery clauses and franchise fees 61
111
Acquisition of purchased power agreement (258 ) —
Recoverable storm-related costs (334 ) (17 )
Other - net (63 ) (15 )
Changes in operating assets and liabilities:

Current assets (578 ) (185 )
Noncurrent assets (45 ) 12
Current liabilities 507
679
Noncurrent liabilities (13 ) (94 )
Net cash provided by operating activities 3,468
3,790
CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures (3,676 ) (2,976 )
Nuclear fuel purchases (104 ) (121 )
Proceeds from sale or maturity of securities in special use funds 1,241
1,775
Purchases of securities in special use funds (1,320 ) (1,836 )
Other - net 29
32
Net cash used in investing activities (3,830 ) (3,126 )
CASH FLOWS FROM FINANCING ACTIVITIES

Issuances of long-term debt 200
150
Retirements of long-term debt (73 ) (262 )
Net change in commercial paper 811
408
Proceeds from other short-term debt 200
500
Repayments of other short-term debt (2 ) (150 )
Dividends to NEE (800 ) (1,300 )
Other - net 1
13
Net cash provided by (used in) financing activities 337
(641 )
Net increase (decrease) in cash and cash equivalents (25 ) 23
Cash and cash equivalents at beginning of period 33
23
Cash and cash equivalents at end of period $ 8
$ 46
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

Accrued property additions $ 400
$ 475
Increase in electric utility plant and other property - net as a result of a noncash exchange $ (96 ) $ —



	Common Stock			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
	Shares	Aggregate Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
Balances, December 31, 2019	489	$	5	$	11,970		$	(169	)	$	25,199		$	37,005		$	4,355		$	41,360
Net income (loss)	—	—		—			—			421			421			(112		)
Premium on equity units	—	—		(253		)	—			—			(253		)	—
Share-based payment activity	—	—		4			—			—			4			—
Dividends on common stock^(a)	—	—		—			—			(685		)	(685		)	—
Other comprehensive loss	—	—		—			(33		)	—			(33		)	(6		)
Issuances of common stock/equity units - net	—	—		(51		)	—			—			(51		)	—
Impact of disposal of a business^(b)	—	—		—			10			—			10			—
Adoption of accounting standards update^(c)	—	—		—			—			(11		)	(11		)	—
Other differential membership interests activity	—	—		(2		)	—			—			(2		)	219
Other	—	—		—			—			(2		)	(2		)	16
Balances, March 31, 2020	489	$	5	$	11,668		$	(192	)	$	24,922		$	36,403		$	4,472		$	40,875

———————————————


(a)	Dividends per share were $1.40 for the three months ended March 31, 2020.


(b)	See Note 11 - Disposal of a Business.


(c)	See Note 11 - Measurement of Credit Losses on Financial Instruments.



	Common Stock			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
	Shares	Aggregate Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
Balances, December 31, 2018	478	$	5	$	10,490		$	(188	)	$	23,837		$	34,144		$	3,269		$	37,413
Net income (loss)	—	—		—			—			680			680			(74		)
Share-based payment activity	1	—		30			—			—			30			—
Dividends on common stock^(a)	—	—		—			—			(598		)	(598		)	—
Other comprehensive loss	—	—		—			(24		)	—			(24		)	—
Other differential membership interests activity	—	—		—			—			—			—			389
Other	—	—		(5		)	(1		)	—			(6		)	30
Balances, March 31, 2019	479	$	5	$	10,515		$	(213	)	$	23,919		$	34,226		$	3,614		$	37,840

———————————————


(a)	Dividends per share were $1.25 for the three months ended March 31, 2019.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2016~~2019 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)



	Three Months Ended March 31,
	2020			2019
OPERATING REVENUES	$	2,540		$	2,618
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange	586			729
Other operations and maintenance	317			340
Depreciation and amortization	402			375
Taxes other than income taxes and other - net	320			317
Total operating expenses - net	1,625			1,761
OPERATING INCOME	915			857
OTHER INCOME (DEDUCTIONS)
Interest expense	(152		)	(139		)
Allowance for equity funds used during construction	16			24
Other - net	—			2
Total other deductions - net	(136		)	(113		)
INCOME BEFORE INCOME TAXES	779			744
INCOME TAXES	137			156
NET INCOME^(a)	$	642		$	588

_______________________


(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 2019 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

(unaudited)



	March 31, 2020			December 31, 2019
ELECTRIC UTILITY PLANT AND OTHER PROPERTY
Plant in service and other property	$	55,481		$	54,523
Nuclear fuel	1,221			1,153
Construction work in progress	3,326			3,351
Accumulated depreciation and amortization	(14,232		)	(13,953		)
Total electric utility plant and other property - net	45,796			45,074
CURRENT ASSETS
Cash and cash equivalents	1,001			77
Customer receivables, net of allowances of $5 and $3, respectively	963			1,024
Other receivables	359			333
Materials, supplies and fossil fuel inventory	754			722
Regulatory assets	237			227
Other	180			136
Total current assets	3,494			2,519
OTHER ASSETS
Special use funds	4,236			4,771
Prepaid benefit costs	1,496			1,477
Regulatory assets	2,506			2,549
Goodwill	300			300
Other	489			498
Total other assets	9,027			9,595
TOTAL ASSETS	$	58,317		$	57,188
CAPITALIZATION
Common stock (no par value, 1,000 shares authorized, issued and outstanding)	$	1,373		$	1,373
Additional paid-in capital	12,051			10,851
Retained earnings	9,816			9,174
Total common shareholder's equity	23,240			21,398
Long-term debt	15,401			14,131
Total capitalization	38,641			35,529
CURRENT LIABILITIES
Commercial paper	210			1,482
Current portion of long-term debt	21			30
Accounts payable	722			768
Customer deposits	461			459
Accrued interest and taxes	415			266
Accrued construction-related expenditures	288			426
Regulatory liabilities	283			284
Other	422			510
Total current liabilities	2,822			4,225
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	2,293			2,268
Deferred income taxes	5,534			5,415
Regulatory liabilities	8,622			9,296
Other	405			455
Total other liabilities and deferred credits	16,854			17,434
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	58,317		$	57,188

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2019 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)



	Three Months Ended March 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	642		$	588
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	402			375
Nuclear fuel and other amortization	42			45
Deferred income taxes	212			203
Cost recovery clauses and franchise fees	—			(27		)
Other - net	(16		)	10
Changes in operating assets and liabilities:
Current assets	36			(35		)
Noncurrent assets	(23		)	(19		)
Current liabilities	(53		)	31
Noncurrent liabilities	(31		)	(35		)
Net cash provided by operating activities	1,211			1,136
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,394		)	(1,104		)
Nuclear fuel purchases	(42		)	(36		)
Proceeds from sale or maturity of securities in special use funds	657			562
Purchases of securities in special use funds	(666		)	(596		)
Other - net	(13		)	1
Net cash used in investing activities	(1,458		)	(1,173		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	1,558			643
Retirements of long-term debt	(284		)	(39		)
Net change in commercial paper	(1,271		)	(860		)
Capital contributions from NEE	1,200			250
Other - net	(18		)	(12		)
Net cash provided by (used in) financing activities	1,185			(18		)
Net increase (decrease) in cash, cash equivalents and restricted cash	938			(55		)
Cash, cash equivalents and restricted cash at beginning of period	195			254
Cash, cash equivalents and restricted cash at end of period	$	1,133		$	199
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	552		$	585

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2019 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY

(millions)

(unaudited)



	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2019	$	1,373	$	10,851	$	9,174	$	21,398
Net income	—		—		642
Capital contributions from NEE	—		1,200		—
Balances, March 31, 2020	$	1,373	$	12,051	$	9,816	$	23,240



	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2018	$	1,373	$	10,601	$	9,040	$	21,014
Net income	—		—		588
Capital contributions from NEE	—		250		—
Other	—		1		—
Balances, March 31, 2019	$	1,373	$	10,852	$	9,628	$	21,853

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2019 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 ~~2016~~2019 Form 10-K. In the opinion of NEE and FPL management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. 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 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 $3.9 billion ($2.5 billion at FPL) and $3.8 billion ($2.6 billion at FPL) for the three months ended March 31, 2020 and 2019, 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, 2020 and December 31, 2019, FPL's unbilled revenues amounted to approximately $434 million and $389 million, respectively, and are included in customer receivables on NEE's and FPL's condensed consolidated balance sheets.

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 from2020 to 2053, 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 associated with ISO annual auctions through 2024 and certain power purchase agreements with maturity dates through 2034. At March 31, 2020, NEER expects to record approximately $965 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.

2. NEP

NextEra Energy Resources provides management, administrative and transportation and fuel management services to NEP and its subsidiaries under various agreements (service agreements). NextEra Energy Resources is also party to a cash sweep and credit support (CSCS) agreement with a subsidiary of NEP. At March 31, 2020 and December 31, 2019, the cash sweep amounts (due to NEP and its subsidiaries) held in accounts belonging to NextEra Energy Resources or its subsidiaries were approximately $60 million and $12 million, respectively, and are included in accounts payable. Fee income totaling approximately $28 million and $24 million for the three months ended March 31, 2020 and 2019, respectively, related to the CSCS agreement and the service agreements and is included in operating revenues in NEE's condensed consolidated statements of income. Amounts due from NEP of approximately $71 million and $53 million are included in other receivables and $32 million and $33 million are included in noncurrent other assets at March 31, 2020 and December 31, 2019, respectively. Under the CSCS agreement, NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $656 million at March 31, 2020 primarily related to obligations on behalf of NEP's subsidiaries with maturity dates ranging from 2020 to 2059 and included certain project performance obligations, obligations under financing and interconnection agreements and obligations related to the sale of differential membership interests. 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, 2020, approximately $31 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Summarized financial information of NEP is as follows:



	Three Months Ended March 31,
	2020			2019
	(millions)
Operating revenues	$	212		$	177
Operating income	$	49		$	34
Net loss	$	(720	)	$	(121	)
Net loss attributable to NEP	$	(222	)	$	(22	)

3. 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 ~~(income) cost~~income for the plans are as follows:



	Pension Benefits						Postretirement Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
	2020			2019			2020			2019
	(millions)
Service cost	$	21		$	20		$	—		$	—
Interest cost	23			29			2			3
Expected return on plan assets	(80		)	(79		)	—			—
Amortization of prior service benefit	—			—			(4		)	(4		)
Amortization of actuarial loss	4			—			1			—
Special termination benefits^(a)	2			—			—			—
Net periodic income at NEE	$	(30	)	$	(30	)	$	(1	)	$	(1	)
Net periodic income allocated to FPL	$	(19	)	$	(18	)	$	(1	)	$	(1	)

Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits
Three Months Ended
September 30, Three Months Ended
September 30, Nine Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016 2017 2016 2017 2016
(millions)
Service cost $ 16
$ 16
$ —
$ —
$ 49
$ 47
$ 1
$ 1
Interest cost 21
26
2
3
63
78
6
10
Expected return on plan assets (67 ) (65 ) —
—
(202 ) (195 ) —
—
Amortization of prior service cost (benefit) —
—
(4 ) —
(1 ) 1
(6 ) (2 )
Special termination benefits —
—
—
—
38
—
—
—
Postretirement benefits settlement —
—
—
—
—
—
1
—
Net periodic (income) cost at NEE $ (30 ) $ (23 ) $ (2 ) $ 3
$ (53 ) $ (69 ) $ 2
$ 9
Net periodic (income) cost at FPL $ (20 ) $ (15 ) $ (2 ) $ 2
$ (32 ) $ (44 ) $ 1
$ 7
_________________________


(a)	Reflects enhanced early retirement benefits.

~~Amendments to Presentation of Retirement Benefits~~ - In March 2017, the FASB issued an accounting standards update that requires certain changes in classification of components of net periodic pension and postretirement benefit costs within the income statement and allows only the service cost component to be eligible for capitalization. This standards update will be applied using the retrospective approach for presentation of the components of net periodic pension and postretirement benefit costs and the prospective approach for capitalization of service cost. NEE and FPL will apply this standards update on January 1, 2018, and are currently evaluating the impact the adoption will have on their consolidated financial statements.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

4. 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 gas infrastructure 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 gas infrastructure assets, providing full energy and capacity requirements services primarily to distribution utilities, and engaging in power and gas 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 gas infrastructure 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 gas infrastructure 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.

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

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; fuel purchases used in the production of electricity are recognized in fuel, purchased power and interchange expense;~~revenues and the equity method investees' related activity is recognized in equity in earnings 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 primarily 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 of equity method investees in NEE's condensed consolidated statements of income. In addition, for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016,~~March 31, 2019, NEE reclassified from AOCI approximately $2$23 million ($~~1 million after-tax) and $17 million ($10~~3 million after tax)~~, respectively, from AOCI~~ to gains on disposal of businesses/assets - net (see Note 11 - Disposal of a Business) and $6 million ($5 million after tax) to interest expense, ~~primarily~~respectively, because it became probable that related future transactions being hedged would not occur. At ~~September 30, 2017,~~March 31, 2020, NEE's AOCI included amounts related to discontinued interest rate cash flow hedges with expiration dates through March 2035 and foreign currency cash flow hedges with expiration dates through September 2030. Approximately ~~$27~~$8 million of net losses included in AOCI at ~~September 30, 2017 is~~March 31, 2020 are expected to be reclassified into earnings within the next 12 months as the principal and/or interest payments are made. Such amounts assume no change in scheduled principal payments.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Fair Value of Derivative Instruments - The tables below present NEE's and FPL's gross derivative positions at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, 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 (see Note 35 - Recurring Fair Value Measurements for netting information), as well as the location of the net derivative position on the condensed consolidated balance sheets.


	September 30, 2017								March 31, 2020
	Gross Basis				Net Basis				Gross Basis				Net Basis
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
	(millions)								(millions)
NEE:
Commodity contracts	$	4,081	$	2,546	$	1,885	$	403	$	6,367	$	4,103	$	2,900	$	710
Interest rate contracts	76		299		92		315		39		1,517		9		1,487
Foreign currency contracts	—		42		11		53		21		107		21		107
Total fair values	$	4,157	$	2,887	$	1,988	$	771	$	6,427	$	5,727	$	2,930	$	2,304

FPL:
Commodity contracts	$	11	$	7	$	7	$	3	$	5	$	17	$	3	$	15

Net fair value by NEE balance sheet line item:
Current derivative assets^(a)					$	442							$	994
Noncurrent derivative assets^(b)					1,546								1,936
Current derivative liabilities(c)							$	257							$	448
Noncurrent derivative liabilities^(c)							514								1,856
Total derivatives					$	1,988	$	771					$	2,930	$	2,304

Net fair value by FPL balance sheet line item:
Current derivative assets					$	7
Current other assets													$	3
Current other liabilities							$	3							$	15
Total derivatives					$	7	$	3					$	3	$	15

———————————————


(a)	Reflects the netting of approximately ~~$74~~$27 million in margin cash collateral received from counterparties.


(b)	Reflects the netting of approximately ~~$12~~$160 million in margin cash collateral received from counterparties.


(c)	Reflects the netting of approximately ~~$33~~$113 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, 2019
	Gross Basis				Net Basis
	Assets		Liabilities		Assets		Liabilities
	(millions)
NEE:
Commodity contracts	$	5,050	$	3,201	$	2,350	$	576
Interest rate contracts	26		742		9		725
Foreign currency contracts	26		38		27		39
Total fair values	$	5,102	$	3,981	$	2,386	$	1,340

FPL:
Commodity contracts	$	4	$	14	$	3	$	13

Net fair value by NEE balance sheet line item:
Current derivative assets^(a)					$	762
Noncurrent derivative assets^(b)					1,624
Current derivative liabilities^(c)							$	344
Current other liabilities^(d)							133
Noncurrent derivative liabilities							863
Total derivatives					$	2,386	$	1,340

Net fair value by FPL balance sheet line item:
Current other assets					$	3
Current other liabilities							$	12
Noncurrent other liabilities							1
Total derivatives					$	3	$	13

December 31, 2016
Gross Basis Net Basis
Assets Liabilities Assets Liabilities
(millions)
NEE:
Commodity contracts $ 4,590
$ 2,968
$ 1,938
$ 483
Interest rate contracts 288
284
296
292
Foreign currency contracts 1
106
1
106
Total fair values $ 4,879
$ 3,358
$ 2,235
$ 881

FPL:
Commodity contracts $ 212
$ 4
$ 209
$ 1

Net fair value by NEE balance sheet line item:
Current derivative assets^(a)
$ 885

Noncurrent derivative assets^(b)
1,350

Current derivative liabilities $ 404
Noncurrent derivative liabilities 477
Total derivatives $ 2,235
$ 881

Net fair value by FPL balance sheet line item:
Current derivative assets $ 209

Current other liabilities $ 1
Total derivatives $ 209
$ 1

———————————————


(a)	Reflects the netting of approximately ~~$96~~$2 million in margin cash collateral received from counterparties.


(b)	Reflects the netting of approximately ~~$71~~$139 million in margin cash collateral received from counterparties.


(c)	Reflects the netting of approximately $66 million in margin cash collateral paid to counterparties.


(d)	See Note 11 - Disposal of a Business.

At ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, NEE had approximately ~~$13~~$37 million and $5$10 million (none 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 ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, NEE had approximately ~~$177~~$330 million and ~~$129~~$360 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.

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
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(millions)
Commodity contracts:^(a)

Operating revenues $ 114
$ 264
$ 538
$ 502
Fuel, purchased power and interchange —
1
—
(1 )
Foreign currency contracts - interest expense (4 )
15
53
96
Foreign currency contracts - other - net (2 ) 1
(5 ) (2 )
Interest rate contracts - interest expense (41 ) (58 ) (232 ) (515 )
Losses reclassified from AOCI to interest expense:
Interest rate contracts (13 ) (18 ) (36 ) (71 )
Foreign currency contracts (1 ) (3 ) (80 ) (9 )
Total $ 53
$ 202
$ 238
$ —



	Three Months Ended March 31,
	2020			2019
	(millions)
Commodity contracts^(a) - operating revenues	$	625		$	(4	)
Foreign currency contracts - interest expense	(79		)	(19		)
Interest rate contracts - interest expense	(905		)	(326		)
Losses reclassified from AOCI:
Interest rate contracts^(b)	(25		)	(12		)
Foreign currency contracts - interest expense	(1		)	(1		)
Total	$	(385	)	$	(362	)

———————————————

(a)

For the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2020 and 2019, FPL recorded losses of approximately ~~$12~~$3 million and ~~$164~~gains of $2 million, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets. For the three and nine months ended September 30, 2016, FPL recorded approximately $35 million of losses and $35 million of gains, respectively, related to commodity contracts as regulatory assets and regulatory liabilities, respectively, on its condensed consolidated balance sheets.


(b)	For the three months ended March 31, 2020, approximately $23 million was reclassified to gains on disposal of businesses/assets - net (see Note 11 - Disposal of a Business); remaining balances were reclassified to interest expense on NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 their 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, 2020					December 31, 2019
Commodity Type	NEE			FPL		NEE			FPL
	(millions)
Power	(76	)	MWh	1	MWh	(81	)	MWh	1	MWh
Natural gas	(158	)	MMBtu	283	MMBtu	(1,723	)	MMBtu	161	MMBtu
Oil	(10	)	barrels	—		(13	)	barrels	—

September 30, 2017 December 31, 2016
Commodity Type NEE FPL NEE FPL
(millions)
Power (107 ) MWh —
(84 ) MWh —

Natural gas 312
MMBtu 255
MMBtu 1,002
MMBtu 618
MMBtu
Oil (3 ) barrels —
(7 ) barrels —

At ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, NEE had interest rate contracts with a net notional ~~amounts totaling~~amount of approximately ~~$13.6~~$8.3 billion and ~~$15.1~~$8.9 billion, respectively, and foreign currency contracts with a net notional ~~amounts totaling~~amount of approximately ~~$714 million~~$1.0 billion and ~~$705 million,~~$1.0 billion, respectively.

Credit-Risk-Related ContingentFeatures - 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 ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately ~~$1.1~~$2.7 billion ($712 million for FPL) and ~~$1.3~~$1.7 billion ($512 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 ~~two~~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 ~~$130~~$150 million ~~(none~~(NaN at FPL) ~~as of September 30, 2017~~at March 31, 2020 and ~~$110~~$215 million ~~(none~~(NaN at FPL) ~~as of~~at December 31, ~~2016.~~2019.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 $1.1 billion ($4030 million at FPL) ~~as of September 30, 2017~~at March 31, 2020 and ~~$990 million~~$1.2 billion ($1035 million at FPL) ~~as of~~at December 31, ~~2016.~~2019. 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 ~~$220 million~~$1.4 billion ($~~140~~60 million at FPL) ~~as of September 30, 2017~~at March 31, 2020 and ~~$225~~$590 million ($~~115~~75 million at FPL) ~~as of~~at December 31, ~~2016.~~2019.

Collateral related to derivatives may be posted in the form of cash or credit support in the normal course of business. At ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, applicable NEE subsidiaries have posted approximately $2 million ~~(none~~(NaN at FPL) and $1$2 million ~~(none~~(NaN at FPL), respectively, in cash and ~~$26~~$62 million ~~(none~~(NaN at FPL) and ~~$30~~$88 million ~~(none~~(NaN at FPL), respectively, in the form of letters of credit, 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 ~~where~~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.

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

3.5. Fair Value Measurements

The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (Level 1) or 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 several 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 comparable 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.

Cash Equivalentsand Restricted Cash Equivalents - NEE and FPL hold investments 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.

Derivative Instruments - 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 OTC 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.

Most exchange-traded derivative assets and liabilities are valued directly using unadjusted quoted prices. For exchange-traded derivative assets and liabilities where the principal market is deemed to be inactive based on average daily volumes and open interest, the measurement is established using settlement prices from the exchanges, and therefore considered to be valued using other observable inputs.

NEE, through its subsidiaries, including FPL, also enters into OTC commodity contract derivatives. The majority of these contracts are transacted at liquid trading points, and the prices for these contracts are verified using quoted prices in active markets from exchanges, brokers or pricing services for similar contracts.

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 exchange and 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 multiple broker quotes to support the market price of the various commodities. In all cases where there are assumptions and models used to generate inputs for valuing derivative assets and liabilities, the review and verification of the assumptions, models and changes to the models are undertaken by individuals that are independent of those responsible for estimating fair value.

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)

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


	September 30, 2017													March 31, 2020
	Level 1		Level 2			Level 3		Netting^(a)			Total			Level 1		Level 2			Level 3		Netting^(a)			Total
	(millions)													(millions)
Assets:
Cash equivalents and restricted cash:^(b)
Cash equivalents and restricted cash equivalents:^(b)
NEE - equity securities	$	999	$	—		$	—				$	999		$	3,115	$	—		$	—				$	3,115
FPL - equity securities	$	112	$	—		$	—				$	112		$	1,127	$	—		$	—				$	1,127
Special use funds:^(c)
NEE:
Equity securities	$	1,590	$	1,695	^(d)	$	—				$	3,285		$	1,505	$	1,661	^(d)	$	—				$	3,166
U.S. Government and municipal bonds	$	404	$	138		$	—				$	542		$	503	$	168		$	—				$	671
Corporate debt securities	$	1	$	772		$	—				$	773		$	1	$	732		$	—				$	733
Mortgage-backed securities	$	—	$	452		$	—				$	452		$	—	$	505		$	—				$	505
Other debt securities	$	—	$	126		$	—				$	126		$	—	$	107		$	—				$	107
FPL:
Equity securities	$	442	$	1,545	^(d)	$	—				$	1,987		$	484	$	1,505	^(d)	$	—				$	1,989
U.S. Government and municipal bonds	$	301	$	115		$	—				$	416		$	396	$	112		$	—				$	508
Corporate debt securities	$	—	$	542		$	—				$	542		$	—	$	529		$	—				$	529
Mortgage-backed securities	$	—	$	343		$	—				$	343		$	—	$	375		$	—				$	375
Other debt securities	$	—	$	114		$	—				$	114		$	—	$	99		$	—				$	99
Other investments:(e)
NEE:
Equity securities	$	25	$	10		$	—				$	35		$	30	$	11		$	—				$	41
Debt securities	$	32	$	109		$	—				$	141		$	65	$	79		$	—				$	144
Derivatives:
NEE:
Commodity contracts	$	1,168	$	1,503		$	1,410	$	(2,196	)	$	1,885	^(e)	$	1,628	$	2,714		$	2,025	$	(3,467	)	$	2,900	^(f)
Interest rate contracts	$	—	$	76		$	—	$	16		$	92	^(e)	$	—	$	39		$	—	$	(30	)	$	9	^(f)
Foreign currency contracts	$	—	$	—		$	—	$	11		$	11	^(e)	$	—	$	21		$	—	$	—		$	21	^(f)
FPL - commodity contracts	$	—	$	10		$	1	$	(4	)	$	7	^(e)	$	—	$	3		$	2	$	(2	)	$	3	^(f)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,144	$	900		$	502	$	(2,143	)	$	403	^(e)	$	1,838	$	1,780		$	485	$	(3,393	)	$	710	^(f)
Interest rate contracts	$	—	$	171		$	128	$	16		$	315	^(e)	$	—	$	1,496		$	21	$	(30	)	$	1,487	^(f)
Foreign currency contracts	$	—	$	42		$	—	$	11		$	53	^(e)	$	—	$	107		$	—	$	—		$	107	^(f)
FPL - commodity contracts	$	—	$	5		$	2	$	(4	)	$	3	^(e)	$	—	$	6		$	11	$	(2	)	$	15	^(f)

———————————————

(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)	Includes restricted cash equivalents of approximately ~~$137~~$79 million ($9977 million for FPL) in current other ~~current~~assets and $55 million ($55 million for FPL) in noncurrent other assets on the condensed consolidated balance sheets.


(c)	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.


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


(e)	Included in noncurrent other assets on NEE's condensed consolidated balance sheet.


(f)	See Note 24 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to 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, 2016													December 31, 2019
	Level 1		Level 2			Level 3		Netting^(a)			Total			Level 1		Level 2			Level 3		Netting^(a)			Total
	(millions)													(millions)
Assets:
Cash equivalents and restricted cash:^(b)
Cash equivalents and restricted cash equivalents:^(b)
NEE - equity securities	$	982	$	—		$	—				$	982		$	363	$	—		$	—				$	363
FPL - equity securities	$	120	$	—		$	—				$	120		$	156	$	—		$	—				$	156
Special use funds:^(c)
NEE:
Equity securities	$	1,410	$	1,503	^(d)	$	—				$	2,913		$	1,875	$	2,088	^(d)	$	—				$	3,963
U.S. Government and municipal bonds	$	296	$	170		$	—				$	466		$	567	$	150		$	—				$	717
Corporate debt securities	$	1	$	763		$	—				$	764		$	—	$	748		$	—				$	748
Mortgage-backed securities	$	—	$	498		$	—				$	498		$	—	$	517		$	—				$	517
Other debt securities	$	—	$	81		$	—				$	81		$	—	$	117		$	—				$	117
FPL:
Equity securities	$	373	$	1,372	^(d)	$	—				$	1,745		$	596	$	1,895	^(d)	$	—				$	2,491
U.S. Government and municipal bonds	$	221	$	141		$	—				$	362		$	429	$	106		$	—				$	535
Corporate debt securities	$	—	$	547		$	—				$	547		$	—	$	533		$	—				$	533
Mortgage-backed securities	$	—	$	384		$	—				$	384		$	—	$	395		$	—				$	395
Other debt securities	$	—	$	70		$	—				$	70		$	—	$	111		$	—				$	111
Other investments:(e)
NEE:
Equity securities	$	26	$	9		$	—				$	35		$	34	$	12		$	—				$	46
Debt securities	$	8	$	153		$	—				$	161		$	82	$	69		$	—				$	151
Derivatives:
NEE:
Commodity contracts	$	1,563	$	1,827		$	1,200	$	(2,652	)	$	1,938	^(e)	$	1,229	$	2,082		$	1,739	$	(2,700	)	$	2,350	^(f)
Interest rate contracts	$	—	$	285		$	3	$	8		$	296	^(e)	$	—	$	24		$	2	$	(17	)	$	9	^(f)
Foreign currency contracts	$	—	$	1		$	—	$	—		$	1	^(e)	$	—	$	26		$	—	$	1		$	27	^(f)
FPL - commodity contracts	$	—	$	208		$	4	$	(3	)	$	209	^(e)	$	—	$	3		$	1	$	(1	)	$	3	^(f)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,476	$	980		$	512	$	(2,485	)	$	483	^(e)	$	1,365	$	1,446		$	390	$	(2,625	)	$	576	^(f)
Interest rate contracts	$	—	$	171		$	113	$	8		$	292	^(e)	$	—	$	598		$	144	$	(17	)	$	725	^(f)
Foreign currency contracts	$	—	$	106		$	—	$	—		$	106	^(e)	$	—	$	38		$	—	$	1		$	39	^(f)
FPL - commodity contracts	$	—	$	1		$	3	$	(3	)	$	1	^(e)	$	—	$	5		$	9	$	(1	)	$	13	^(f)

———————————————

(a)


(b)	Includes restricted cash equivalents of approximately ~~$164~~$60 million ($~~120~~54 million for FPL) in current other ~~current~~assets and $64 million ($64 million for FPL) in noncurrent other assets on the condensed consolidated balance sheets.


(c)	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.


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


(e)	Included in noncurrent other assets on NEE's condensed consolidated balance sheet.


(f)	See Note 24 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to 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)

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

All price, volatility, correlation and customer migration inputs used in valuation are subject to validation by the Trading Risk Management group. The Trading Risk Management group performs a risk management function responsible for assessing credit, market and operational risk impact, reviewing valuation methodology and modeling, confirming transactions, monitoring approval processes and developing and monitoring trading limits. The Trading Risk Management group is separate from the transacting group. For markets where independent third-party data is readily available, validation is conducted daily by directly reviewing this market data against inputs utilized by the transacting group, and indirectly by reviewing daily risk reports. For markets where independent third-party data is not readily available, additional analytical reviews are performed on at least a quarterly basis. These analytical reviews are designed to ensure that all price and volatility curves used for fair valuing transactions are adequately validated each quarter, and are reviewed and approved by the Trading Risk Management group. In addition, other valuation assumptions such as implied correlations and customer migration rates are reviewed and approved by the Trading Risk Management group on a periodic basis. Newly created models used in the valuation process are also subject to testing and approval by the Trading Risk Management group prior to use and established models are reviewed annually, or more often as needed, by the Trading Risk Management group.

On a monthly basis, the Exposure Management Committee (EMC), which is comprised of certain members of senior management, meets with representatives from the Trading Risk Management group and the transacting group to discuss NEE's and FPL's energy risk profile and operations, to review risk reports and to discuss fair value issues as necessary. The EMC develops guidelines required for an appropriate risk management control infrastructure, which includes implementation and monitoring of compliance with Trading Risk Management policy. The EMC executes its risk management responsibilities through direct oversight and delegation of its responsibilities to the Trading Risk Management group, as well as to other corporate and business unit personnel.

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at ~~September 30, 2017~~March 31, 2020 are as follows:


	Fair Value at				Valuation	Significant				Fair Value at				Valuation	Significant				Weighted-
Transaction Type	September 30, 2017				Technique(s)	Unobservable Inputs	Range			March 31, 2020				Technique(s)	Unobservable Inputs	Range			average^(a)
	Assets		Liabilities							Assets		Liabilities
	(millions)									(millions)
Forward contracts - power	$	860	$	263	Discounted cash flow	Forward price (per MWh)	$—	—	$87	$	864	$	111	Discounted cash flow	Forward price (per MWh)	$2	—	$194	$26
Forward contracts - gas	28		14		Discounted cash flow	Forward price (per MMBtu)	$1	—	$6	271		22		Discounted cash flow	Forward price (per MMBtu)	$1	—	$6	$2
Forward contracts - congestion										21		4		Discounted cash flow	Forward price (per MWh)	$(13)	—	$32	$—
Options - power	48		19		Option models	Implied correlations	1%	—	100%	33		10		Option models	Implied correlations	31%	—	84%	50%
						Implied volatilities	8%	—	227%						Implied volatilities	13%	—	295%	45%
Options - primarily gas	149		195		Option models	Implied correlations	1%	—	100%	238		248		Option models	Implied correlations	31%	—	100%	53%
						Implied volatilities	1%	—	104%						Implied volatilities	14%	—	278%	36%
Full requirements and unit contingent contracts	325		11		Discounted cash flow	Forward price (per MWh)	$(19)	—	$206	574		69		Discounted cash flow	Forward price (per MWh)	$6	—	$748	$46
						Customer migration rate^(a)	—%	—	20%						Customer migration rate^(b)	—%	—	13%	—%
Forward contracts - other										24		21
Total	$	1,410	$	502						$	2,025	$	485

———————————————


(a)	Unobservable inputs were weighted by volume.


(b)	Applies only to full requirements contracts.

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

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)~~


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

In addition, the fair value measurement of interest rate contract net liabilities related to the solar projects in Spain of approximately $128 million at September 30, 2017 includes a significant credit valuation adjustment. The credit valuation adjustment, considered an unobservable input, reflects management's assessment of non-performance risk of the subsidiaries related to the solar projects in Spain that are party to the contracts.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 September 30,												Three Months Ended March 31,
	2017						2016						2020						2019
	NEE			FPL			NEE			FPL			NEE			FPL			NEE			FPL
	(millions)												(millions)
Fair value of net derivatives based on significant unobservable inputs at June 30	$	724		$	(2	)	$	532		$	(1	)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period													$	1,207		$	(8	)	$	647		$	(36	)
Realized and unrealized gains (losses):
Included in earnings^(a)	158			—			153			—			387			—			180			—
Included in other comprehensive income (loss)^(b)	(5		)	—			—			—			—			—			3			—
Included in regulatory assets and liabilities													(2		)	(2		)	(2		)	(2		)
Purchases	38			—			28			—			81			—			24			—
Sales^(c)													114			—			—			—
Settlements	(77		)	1			(72		)	1			(206		)	1			(39		)	20
Issuances	(59		)	—			(16		)	—			(32		)	—			(14		)	—
Transfers in^(c)	—			—			1			—
Transfers out^(c)	1			—			36			—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	780		$	(1	)	$	662		$	—
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date^(d)	$	213		$	—		$	150		$	—
Transfers out^(d)													(30		)	—			45			2
Fair value of net derivatives based on significant unobservable inputs at March 31													$	1,519		$	(9	)	$	844		$	(16	)
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date^(e)													$	308		$	—		$	116		$	—

———————————————


(a)	For the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016,~~2019, realized and unrealized gains of approximately ~~$164~~$405 million and ~~$198~~$194 million, respectively, are ~~reflected~~included in the condensed consolidated statements of income in operating revenues and the balance is ~~primarily reflected~~included in interest expense.


(b)	~~Reflected~~Included in net unrealized gains (losses) on foreign currency translation onin the condensed consolidated statements of comprehensive income.


(c)	~~Transfers into Level 3 were~~See Note 11 - Disposal of a ~~result of decreased observability of market data and transfers~~Business.


(d)	Transfers from Level 3 to Level 2 were a result of increased observability of market data. ~~NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.~~


~~(d)~~(e)	For the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016,~~2019, unrealized gains of approximately ~~$219~~$319 million and ~~$194~~$130 million, respectively, are ~~reflected~~included in the condensed consolidated statements of income in operating revenues and the balance is ~~reflected~~included in interest expense.

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

Nine Months Ended September 30,
2017 2016
NEE FPL NEE FPL
(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period $ 578
$ 1
$ 538
$ —
Realized and unrealized gains (losses):
Included in earnings^(a)
518
—
373
—
Included in other comprehensive income^(b)
(16 ) —
(3 ) —
Included in regulatory assets and liabilities (2 ) (2 ) —
—
Purchases 83
—
203
—
Settlements (234 ) —
(300 ) —
Issuances (162 ) —
(159 ) —
Transfers in^(c)
14
—
4
—
Transfers out^(c)
1
—
6
—
Fair value of net derivatives based on significant unobservable inputs at September 30 $ 780
$ (1 ) $ 662
$ —
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date^(d)
$ 461
$ —
$ 231
$ —

~~———————————————~~


~~(a)~~	For the nine months ended September 30, 2017 and 2016, realized and unrealized gains of approximately $519 million and $443 million, respectively, are reflected in the condensed consolidated statements of income in operating revenues and the balance is primarily reflected in interest expense.


~~(b)~~	~~Reflected in net unrealized gains on foreign currency translation on the condensed consolidated statements of comprehensive income.~~


~~(c)~~	Transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.


~~(d)~~	For the nine months ended September 30, 2017 and 2016, unrealized gains of approximately $462 million and $302 million, respectively, are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in interest expense.

~~Contingent Consideration~~ - NEE recorded a liability related to a contingent holdback as part of the 2015 acquisition of a portfolio of seven long-term contracted natural gas pipeline assets located in Texas (Texas pipelines). The contingent holdback was payable if the Texas pipelines entered into one or more written contracts by December 31, 2016 related to certain financial performance and capital expenditure thresholds. The significant inputs and assumptions used in the fair value measurement included the estimated probability of executing contracts related to financial performance and capital expenditure thresholds as well as the appropriate discount rate. During the three and nine months ended September 30, 2016, NEE recorded approximately $101 million and $118 million, respectively, in fair value adjustments to decrease the contingent consideration based on updated estimates associated with management's probability assessment as of September 30, 2016. The fair value adjustments are included in revaluation of contingent consideration in NEE's condensed consolidated statements of income.

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:


	September 30, 2017					December 31, 2016						March 31, 2020					December 31, 2019
	Carrying Amount		Estimated Fair Value			Carrying Amount			Estimated Fair Value			Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)											(millions)
NEE:
Special use funds^(a)	$	716	$	716		$	712		$	712		$	931	$	930		$	892	$	891
Other investments - primarily notes receivable^(b)	$	512	$	695		$	526		$	668
Long-term debt, including current maturities	$	32,625	$	34,846	^(c)	$	30,418	^(d)	$	31,623	^(c)(d)
Other investments^(b)												$	23	$	23		$	30	$	30
Long-term debt, including current portion^(c)												$	43,605	$	45,791	^(d)	$	39,667	$	42,928	^(d)
FPL:
Special use funds^(a)	$	561	$	561		$	557		$	557		$	736	$	735		$	706	$	705
Long-term debt, including current maturities	$	10,518	$	11,941	^(c)	$	10,072		$	11,211	^(c)
Long-term debt, including current portion												$	15,422	$	17,721	^(d)	$	14,161	$	16,448	^(d)

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

Special Use Funds - The special use funds noted above and those carried at fair value (see Recurring Fair Value Measurements above) consist of NEE's nuclear decommissioning fund assets of ~~$5,894~~approximately $6,037 million and ~~$5,434~~$6,880 million at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, respectively, ($~~3,963~~4,160 million and ~~$3,665~~$4,697 million, respectively, for FPL). and FPL's storm fund assets of $76 million and $74 million at March 31, 2020 and December 31, 2019, respectively. The investments held in the special use funds consist of equity and available for sale debt securities which are primarily ~~classified as available for sale and~~ carried at estimated fair value. The amortized cost of debt ~~and equity~~ securities is approximately ~~$1,863~~$2,009 million and ~~$1,604~~$2,030 million at March 31, 2020 and December 31, 2019, respectively, ($1,508 million and $1,523 million, respectively, at September 30, 2017 and $1,820 million and $1,543 million, respectively, at December 31, 2016 ($1,392 million and $808 million, respectively, at September 30, 2017 and $1,373 million and $764 million, respectively, at December 31, 2016 for FPL).

Effective January 1, 2020, NEE and FPL adopted an accounting standards update that provides a modified version of the other than temporary impairment model for debt securities. The new available for sale debt security impairment model no longer allows

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

consideration of the length of time during which the fair value has been less than its amortized cost basis when determining whether a credit loss exists. Credit losses are required to be presented as an allowance rather than as a write-down on securities not intended to be sold or required to be sold. NEE and FPL adopted this model prospectively. See Note 11 - Measurement of Credit Losses on Financial Instruments.

For FPL's special use funds, ~~consistent with regulatory treatment,~~ changes in fair value of debt and equity securities, including any ~~other than temporary impairment~~estimated credit losses of debt securities, result in a corresponding adjustment to the related regulatory asset or liability ~~accounts.~~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 ~~associated with marketable~~on debt securities ~~considered~~intended or required to be ~~other than temporary, including any credit losses,~~sold prior to recovery of the amortized cost basis, which are recognized ~~as other than temporary impairment losses on securities held in nuclear decommissioning funds and included~~ in other - net in NEE's condensed consolidated statements of income. Changes in fair value of equity securities are 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.

The unrealized gains (losses) recognized during the three months ended March 31, 2020 and 2019 on equity securities held at March 31, 2020 and 2019 were $(808) million and $367 million, respectively ($(502) million and $234 million for the three months ended March 31, 2020 and 2019 for FPL). Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at ~~September 30, 2017~~March 31, 2020 of approximately eight years at ~~both~~ NEE and nine years at FPL. FPL's storm fund primarily consists of debt securities with a weighted-average maturity at March 31, 2020 of approximately one year. The cost of securities sold is determined using the specific identification method.

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

The unrealized gains ~~on available for sale securities are as follows:~~

NEE FPL
September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
(millions)
Equity securities $ 1,690
$ 1,396
$ 1,188
$ 1,007
Debt securities $ 40
$ 22
$ 31
$ 17

~~The~~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:

Unrealized losses^(a)

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.

NEE's effective income tax rate for the three months ended March 31, 2020 and 2019 was approximately (321.9)% and 10.9%, respectively. NEE's effective income tax rate for the three months ended March 31, 2020 is based on the composition of pre-tax

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~4. Income Taxes~~income and primarily reflects the impact of unfavorable changes in the fair value of interest rate derivative instruments and equity securities held in NEER's nuclear decommissioning funds, and the gain on the sale of the Spain solar projects that was not taxable for federal and state income tax purposes (see Note 11 - Disposal of a Business).

~~NEE's~~A reconciliation between the effective income tax rates ~~for~~and the three months ended September 30, 2017 and 2016 were approximately 30% and 35%, respectively. The rates for both periods reflect the benefit of PTCs of approximately $27 million and $19 million, respectively, related to NEER's wind projects,applicable statutory rate is as well as ITCs and deferred income taxes associated with grants under the Recovery Act (convertible ITCs) totaling approximately $51 million and $34 million, respectively, related to solar and certain wind projects at NEER.follows:



	NEE				FPL
	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2020		2019
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	(61.0	)	4.7		4.3		4.4
Taxes attributable to noncontrolling interests	32.7		2.3		—		—
PTCs and ITCs - NEER	(86.5	)	(8.3	)	—		—
Amortization of deferred regulatory credit	(55.5	)	(4.8	)	(5.0	)	(3.8	)
Foreign operations	(76.9	)	0.3		—		—
Other - net	(95.7	)	(4.3	)	(2.7	)	(0.7	)
Effective income tax rate	(321.9	)%	10.9	%	17.6	%	20.9	%

NEE recognizes PTCs as wind 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 financial viability of most wind projects and a fundamental component of such wind projects' results of operations. PTCs, as well as ITCs, ~~and deferred income taxes associated with convertible ITCs,~~ can significantly affect NEE's effective income tax rate depending on the amount of pretax income. The amount of PTCs recognized can be significantly affected by wind generation and by the roll off of PTCs after ten years of ~~production (PTC roll off).~~production.

In April 2016, a court decision was issued approving a reorganization of certain Canadian assets that provided for tax bases in certain of these assets (Canadian tax restructuring). NEE recorded approximately $30 million of the associated income tax benefits during the nine months ended September 30, 2016, which effectively reversed a portion of the income tax charge NEE recorded in the second quarter of 2014 associated with structuring Canadian assets. In addition, consolidating income tax adjustments for the nine months ended September 30, 2016 include an approximately $58 million income tax charge related to the sale of NEER's ownership interest in merchant natural gas generation facilities located in Texas with a total generating capacity of 2,884 MW (Texas natural gas generation facilities). See Note 9 - Assets and Liabilities Associated with Assets Held for Sale.

Under the acquisition method, the purchase price was allocated to the assets acquired and ~~Energy Future Intermediate Holding Company LLC (EFIH), Texas Transmission Holdings Corporation (TTHC), Oncor Management Investment LLC and certain of~~liabilities assumed on January 1, 2019 based on their ~~affiliates, which would have resulted in NEE owning 100% of Oncor Electric Delivery Company LLC (Oncor) if the transactions contemplated by those agreements would have been consummated.~~fair value. The ~~agreements with EFH and EFIH and TTHC were subject to, among other things,~~ approval by the ~~Public Utility Commission~~FPSC of ~~Texas (PUCT). On April 13, 2017,~~Gulf Power's rates, which is intended to allow Gulf Power to collect from retail customers total revenues equal to Gulf Power's costs of providing service, including a reasonable rate of return on invested capital, is considered a fundamental input in measuring the ~~PUCT issued~~fair value of Gulf Power's assets and liabilities and, as such, NEE concluded that the carrying values of all assets and liabilities recoverable through rates are representative of their fair values. As a ~~final order denying NEE's purchase~~result, NEE acquired assets of ~~Oncor. On July 6, 2017, EFH~~approximately $5.2 billion, primarily relating to property, plant and ~~EFIH provided a written notice (notice) to NEE terminating the agreement~~equipment of $4.0 billion and ~~plan~~regulatory assets of ~~merger, dated as~~$494 million, and assumed liabilities of ~~July 29, 2016, as amended (merger agreement), under which EFH Merger Co., LLC (Merger Sub), a direct wholly owned subsidiary~~approximately $3.4 billion, including $1.3 billion of ~~NEE, would have acquired 100%~~long-term debt, $635 million of regulatory liabilities and $562 million of deferred income taxes. The excess of the ~~equity~~purchase price over the fair value of ~~reorganized EFH~~assets acquired and ~~certain~~liabilities assumed resulted in approximately $2.7 billion of ~~its subsidiaries, including its indirect ownership of approximately 80% of~~goodwill which has been recognized on NEE's condensed consolidated balance sheet at March 31, 2020. Goodwill associated with the ~~outstanding equity interests of Oncor. Subsequently, NEE, EFH~~Gulf Power acquisition is reflected within Corporate and ~~EFIH~~Other and, ~~a large creditor of EFIH commenced legal proceedings~~for impairment testing, is included in the ~~U.S. Bankruptcy Court for~~Gulf Power reporting unit. The goodwill arising from the ~~District~~transaction represents expected benefits from continued expansion of Delaware (bankruptcy court) in which the chapter 11 bankruptcy proceedings of EFH and EFIH are taking place to determine whether NEE is entitled to receive the $275 million termination fee to which NEE believes it is entitled under the merger agreement and a September 2016 order of the bankruptcy court approving the termination fee payment provisions of the merger agreement (2016 termination fee approval order). In October 2017, the judge presiding over these proceedings issued an opinion and order in one of these legal proceedings that the bankruptcy court's issuance of the 2016 termination fee approval order was based upon a fundamental misapprehension of critical facts by the bankruptcy court and, accordingly, ordered that EFH and EFIH are not authorized to pay the fee. NEE intends to appeal this decision and believes it is erroneous. Until that appeal is ultimately resolved, the remaining legal proceedings in the bankruptcy court between NEE, EFH and EFIHNEE's regulated businesses and the ~~large creditor~~indefinite life of ~~EFIH as to whether NEE would be entitled to the termination fee if the foregoing appeal is successful have been stayed.~~Gulf Power's service territory franchise.

NEE is continuing to perform its obligations under the TTHC merger agreement. The TTHC merger agreement becomes terminable by NEE and separately by TTHC and its primary owners (acting together) if the PUCT has not approved the TTHC transaction by October 31, 2017. The TTHC merger agreement contemplates the payment by NEE of a termination fee of $72.3 million in connection with certain specified terminations of the TTHC merger agreement.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair value. The approval by the FERC of Trans Bay’s rates, which is intended to allow Trans Bay to collect total revenues equal to Trans Bay's costs for the development, financing, construction, operation and maintenance of Trans Bay, including a reasonable rate of return on invested capital, is considered a fundamental input in measuring the fair value of Trans Bay's assets and liabilities and, as such, NEE concluded that the carrying values of all assets and liabilities recoverable through rates are representative of their fair values. As a result, NEE acquired assets of approximately $703 million, primarily relating to property, plant and equipment, and assumed liabilities of approximately $643 million, primarily relating to long-term debt. The excess of the purchase price over the fair value of assets acquired and liabilities assumed resulted in approximately $610 million of goodwill which has been recognized on NEE's condensed consolidated balance sheet at March 31, 2020, of which approximately $572 million is expected to be deductible for tax purposes. Goodwill associated with the Trans Bay acquisition is reflected within NEER and, for impairment testing, is included in the rate-regulated transmission reporting unit. The goodwill arising from the transaction represents expected benefits from continued expansion of NEE's regulated businesses. The valuation of the acquired net assets is subject to change as NEE obtains additional information for its estimates during the measurement period.

~~FPL~~NEER - FPL is considered the primary beneficiary of, and therefore consolidates, a VIE that is a wholly owned bankruptcy remote special purpose subsidiary that it formed in 2007 for the sole purpose of issuing storm-recovery bonds pursuant to the securitization provisions of the Florida Statutes and a financing order of the FPSC. FPL is considered the primary beneficiary because FPL has the power to direct the significant activities of the VIE, and its equity investment, which is subordinate to the bondholder's interest in the VIE, is at risk. Storm restoration costs incurred by FPL during 2005 and 2004 exceeded the amount in FPL's funded storm and property insurance reserve, resulting in a storm reserve deficiency. In 2007, the VIE issued $~~652 million~~ aggregate principal amount of senior secured bonds (storm-recovery bonds), primarily for the after-tax equivalent of the total of FPL's unrecovered balance of the 2004 storm restoration costs, the 2005 storm restoration costs and to reestablish FPL's storm and property insurance reserve. In connection with this financing, net proceeds, after debt issuance costs, to the VIE (approximately $~~644 million~~) were used to acquire the storm-recovery property, which includes the right to impose, collect and receive a storm-recovery charge from all customers receiving electric transmission or distribution service from FPL under rate schedules approved by the FPSC or under special contracts, certain other rights and interests that arise under the financing order issued by the FPSC and certain other collateral pledged by the VIE that issued the bonds. The storm-recovery bonds are payable only from and are secured by the storm-recovery property. The bondholders have no recourse to the general credit of FPL. The assets of the VIE were approximately $~~143 million~~ ~~and $216 million~~ at ~~September 30, 2017~~ ~~and~~ ~~December~~At March 31, ~~2016~~, respectively, and consisted primarily of storm-recovery property, which are included in both current and noncurrent regulatory assets on NEE's and FPL's condensed consolidated balance sheets. The liabilities of the VIE were approximately $~~145 million~~ ~~and $214 million~~ at ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, respectively, and consisted primarily of storm-recovery bonds, which are included in current maturities of long-term debt and long-term debt on NEE's and FPL's condensed consolidated balance sheets.~~

~~NEER~~ -2020, NEE consolidates ~~thirty-two~~32 VIEs within the NEER ~~VIEs.~~segment. Subsidiaries within the NEER issegment are considered the primary beneficiary of these VIEs since ~~NEER controls~~they control the most significant activities of these VIEs, including operations and maintenance, and ~~has~~they have the obligation to absorb expected losses of these VIEs.

~~A subsidiary of NEER is the primary beneficiary of, and therefore~~NextEra Energy Resources consolidates NEP, which consolidates NEP OpCo because of NEP’s controlling interest in the general partner of NEP OpCo. NEP is a limited partnership formed to acquire, manage and own contracted clean energy projects with stable, long-term cash flows through a limited partner interest in NEP OpCo. NEE owns a controlling non-economic general partner interest in NEP and a limited partner interest in NEP OpCo, and presents NEP's limited partner interest as a noncontrolling interest in NEE's consolidated financial statements. At September 30, 2017, NEE owned common units of NEP OpCo representing a noncontrolling interest in NEP’s operating projects of approximately 65.1%. The assets and liabilities of NEP were approximately $7.8 billion and $5.7 billion, respectively, at September 30, 2017, and $7.2 billion and $5.0 billion, respectively, at December 31, 2016, and primarily consisted of property, plant and equipment and long-term debt. During the third quarter of 2017, changes to NEP's governance structure were made that, among other things, enhanced NEP unitholder governance rights. As a result of these governance changes, NEE expects to deconsolidate NEP beginning in January 2018.

A ~~NEER VIE consolidates two entities~~2 VIEs, which own and operate natural gas/oil electric generation facilities with the capability of producing ~~110~~1,450 MW. These entities sell their electric output to third parties under power sales contracts ~~to a third party,~~ with expiration dates in ~~2018~~2021 and ~~2020~~.2031. The power sales contracts provide the offtaker the ability to dispatch the facilities and require the offtaker to absorb the cost of fuel. The entities have third-party debt which is secured by liens against the generation facilities and the other assets of these entities. The debt holders have no recourse to the general credit of NEER for the repayment of debt. The assets and liabilities of ~~the VIE~~these VIEs were approximately $83$204 million and $28$23 million,, respectively, at ~~September 30, 2017~~March 31, 2020 and $95$216 million and $42$25 million,, respectively, at December 31, ~~2016~~,2019. At March 31, 2020 and December 31, 2019, the assets of these VIEs consisted primarily of property, plant and ~~equipment and long-term debt.~~equipment.

~~Two~~NaN indirect subsidiaries of ~~NEER each contributed, to a NEP subsidiary,~~NextEra Energy Resources have an approximately 50% ownership interest in ~~three~~5 entities which own and operate solar PVphotovoltaic (PV) facilities with the capability of producing a total of approximately ~~277~~409.3 MW. Each of the ~~two indirect~~3 subsidiaries ~~of NEER~~ is considered a VIE since the non-managing members have no substantive rights over the managing members, and is consolidated by ~~NEER.~~NextEra Energy Resources. These ~~three~~5 entities sell their electric output to third parties under power sales contracts with expiration dates in ranging from2035 ~~and 2036.~~through 2042. The ~~three~~5 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 ~~NEER~~NextEra Energy Resources for the repayment of debt. The assets and liabilities of these VIEs were approximately ~~$574~~$778 million and ~~$481~~$635 million, respectively, at ~~September 30, 2017~~March 31, 2020 and ~~$571~~$776 million and ~~$487~~$598 million, respectively, at December 31, ~~2016,~~2019. At March 31, 2020 and December 31, 2019, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and long-term debt.

~~NEER~~NEE consolidates a ~~special purpose entity~~NEET VIE that ~~has insufficient equity at risk~~is constructing an approximately 280-mile electricity transmission line. A NEET subsidiary is the primary beneficiary and controls the most significant activities during the construction period, including controlling the construction budget. NEET is ~~considered a VIE. The entity provided a loan in~~entitled to receive 50% of the ~~form~~profits and losses of ~~a note receivable (see Note 3 - Fair Value of Financial Instruments Recorded at Other than Fair Value) to an unrelated third party, and also issued senior secured bonds which are collateralized by~~ the ~~note receivable.~~entity. The assets and liabilities of the VIE ~~were~~totaled approximately ~~$505~~$235 million and $56 million, respectively, at March 31, 2020, and $173 million and ~~$493~~$29 million, ~~respectively, at September 30, 2017, and $502 million and $511 million,~~

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

respectively, at December 31, ~~2016,~~2019. At March 31, 2020 and December 31, 2019, the assets of this VIE consisted primarily of ~~notes receivables (included in other investments~~property, plant and ~~classified as held for sale as of September 30, 2017) and long-term debt.~~equipment.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Certain subsidiaries of NEE have noncontrolling interests in entities accounted for under the equity ~~method.~~method, including NEE's noncontrolling interest in NEP OpCo. These entities are limited partnerships or similar entity structures in which the limited partners or ~~nonmanaging~~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 ~~$268~~$3,731 million and ~~$234~~$4,254 million at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016, respectively, which~~2019, respectively. At March 31, 2020, subsidiaries of NEE had commitments to invest additional amounts in 5 of the entities. Such commitments are included in ~~other investments on NEE’s condensed consolidated balance sheets. Subsidiaries of NEE had committed to invest an additional approximately $90 million~~the NEER amounts in ~~three of~~ the ~~entities as of September 30, 2017 and $30 million~~table in ~~two of the entities as of December 31, 2016.~~Note 12 - Contracts.

Common shares issuable pursuant to ~~equity units,~~ stock options, ~~and~~ performance share awards and/or equity units, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were ~~less than one~~approximately 6.2 million and ~~approximately 11.2~~0.5 million for the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016, respectively, and 4.1 million and 3.9 million for the nine months ended September 30, 2017 and 2016,~~2019, respectively. NEP's senior unsecured convertible notes (see Note 8) are potentially dilutive securities, however, their effect on the calculation of NEE's diluted EPS for the three and nine months ended September 30, 2017 was not material.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~NEP Series A Preferred Unit Purchase Agreement -~~ In June 2017, NEP entered into a Series A Preferred Unit Purchase Agreement to issue and sell, on or before December 31, 2017, $550 million of Series A convertible preferred units representing limited partner interests in NEP (NEP preferred units). When issued, holders of the NEP preferred units will be entitled to receive certain cumulative quarterly distributions from NEP, which may be paid, at NEP’s election and subject to certain limitations, in cash, additional NEP preferred units or a combination thereof. Each holder of NEP preferred units (together with its affiliates) may elect to convert all or any portion of its NEP preferred units into common units of NEP initially on a one-for-one basis, subject to certain adjustments (the conversion rate), at any time after June 20, 2019, subject to certain conditions. NEP may elect to convert all or a portion of the NEP preferred units into NEP common units based on the conversion rate at any time after the first anniversary of the date of issuance of the NEP preferred units being converted if certain conditions are met and subject to certain maximum conversion amounts prior to the third anniversary of the final closing date.

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

Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investee Total

(millions)
Three Months Ended September 30, 2017
Balances, June 30, 2017 $ (96 )
$ 268

$ (76 )
$ (71 )
$ (22 )
$ 3
Other comprehensive income before reclassifications —

31

—

10

1

42
Amounts reclassified from AOCI 10
^(a)
(6 )
^(b)
(1 )
—

—

3
Net other comprehensive income (loss) 10

25

(1 )
10

1

45
Less other comprehensive income attributable to noncontrolling interests (1 ) —
—
1
—
—
Balances, September 30, 2017 $ (85 )
$ 293

$ (77 )
$ (62 )
$ (21 )
$ 48



	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investees		Total
	(millions)
Three Months Ended March 31, 2020
Balances, December 31, 2019	$	(27	)		$	11			$	(114	)		$	(42	)		$	3	$	(169	)
Other comprehensive loss before reclassifications	—				(8		)		—				(35		)		—		(43		)
Amounts reclassified from AOCI	2			^(a)	(1		)	^(b)	3			^(c)	—				—		4
Net other comprehensive income (loss)	2				(9		)		3				(35		)		—		(39		)
Impact of disposal of a business	23			^(d)	—				—				(13		)	^(d)	—		10
Balances, March 31, 2020	$	(2	)		$	2			$	(111	)		$	(90	)		$	3	$	(198	)
Attributable to noncontrolling interests	$	—			$	—			$	—			$	(6	)		$	—	$	(6	)
Attributable to NEE	$	(2	)		$	2			$	(111	)		$	(84	)		$	3	$	(192	)



	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investees			Total
	(millions)
Three Months Ended March 31, 2019
Balances, December 31, 2018	$	(55	)		$	(7	)		$	(65	)		$	(63	)	$	2		$	(188	)
Other comprehensive income (loss) before reclassifications	—				8				(52		)		10			(1		)	(35		)
Amounts reclassified from AOCI	10			^(a)	2			^(b)	(1		)	^(c)	—			—			11
Net other comprehensive income (loss)	10				10				(53		)		10			(1		)	(24		)
Acquisition of Gulf Power	(1		)		—				—				—			—			(1		)
Balances, March 31, 2019	$	(46	)		$	3			$	(118	)		$	(53	)	$	1		$	(213	)

Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investee Total
(millions)
Three Months Ended September 30, 2016
Balances, June 30, 2016 $ (134 ) $ 193
$ (69 ) $ (44 ) $ (28 )
$ (82 )
Other comprehensive income (loss) before reclassifications —
31
—
(9 ) 3

25
Amounts reclassified from AOCI 17
^(a)
(2 )
^(b)
—
—
—

15
Net other comprehensive income (loss) 17
29
—
(9 ) 3

40
Less other comprehensive loss attributable to noncontrolling interests —
—
—
(6 ) —
(6 )
Balances, September 30, 2016 $ (117 ) $ 222
$ (69 ) $ (47 ) $ (25 )
$ (36 )

~~———————————————~~

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investee Total

(millions)
Nine Months Ended September 30, 2017
Balances, December 31, 2016 $ (100 ) $ 225
$ (83 ) $ (90 ) $ (22 ) $ (70 )
Other comprehensive income before reclassifications —
91
7
30
1
129
Amounts reclassified from AOCI 24
^(a)
(23 )
^(b)
(1 ) —
—
—
Net other comprehensive income 24
68
6
30
1
129
Less other comprehensive income attributable to noncontrolling interests 9
—
—
2
—
11
Balances, September 30, 2017 $ (85 ) $ 293
$ (77 ) $ (62 ) $ (21 ) $ 48

~~———————————————~~

Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains (Losses) 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 (Loss) Related to Equity Method Investee Total
(millions)
Nine Months Ended September 30, 2016
Balances, December 31, 2015 $ (170 ) $ 174
$ (62 ) $ (85 ) $ (24 ) $ (167 )
Other comprehensive income (loss) before reclassifications —
56
(7 ) 19
(1 ) 67
Amounts reclassified from AOCI 53
^(a)
(8 )
^(b)
—
—
—
45
Net other comprehensive income (loss) 53
48
(7 ) 19
(1 ) 112
Less other comprehensive loss attributable to noncontrolling interests —
—
—
(19 ) —
(19 )
Balances, September 30, 2016 $ (117 ) $ 222
$ (69 ) $ (47 ) $ (25 ) $ (36 )

~~———————————————~~

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

Significant long-term debt issuances and borrowings ~~by subsidiaries of NEE~~ during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 were as follows:

Principal Amount Interest Rate Maturity Date
(millions)
FPL:
Other long-term debt $ 200
Variable
^(a)
2018
NEECH:
Debentures $ 1,250
3.55 % 2027
Japanese yen denominated term loan $ 535
Variable
^(a)
2020
Junior subordinated debentures $ 755
5.11 % 2057
NEER:
Senior secured limited-recourse term loans $ 308
Variable
^(a)
2026
Senior unsecured NEP convertible notes $ 300
1.50 %
^(b)
2020
Senior unsecured notes $ 1,100
4.25% - 4.50%
2024 - 2027
Senior secured limited-recourse notes $ 200
3.50 % 2037
Other long-term debt $ 480
Variable
^(a)
2018 - 2019



	Principal Amount		Interest Rate			Maturity Date
	(millions)
FPL:
First mortgage bonds	$	1,100	2.85	%		2025
Senior unsecured notes	$	175	Variable		^(a)	2070
NEECH:
Debentures, related to NEE's equity units	$	2,500	1.84	%		2025

~~9. Summary of Significant Accounting and Reporting Policies~~

~~Revenue Recognition -~~ In May 2014, the FASB issued an accounting standards update, which was subsequently amended, that provides guidance on the recognition of revenue from contracts with customers and requires additional disclosures regarding such contracts. FPL and NEER generate substantially all of NEE’s operating revenues. FPL’s operating revenues are derived primarily from tariff-based sales that result from providing electricity to retail customers with no defined contractual term. For these types of sales, FPL expects that the operating revenues will be equivalent to the electricity delivered and billed in that period under the standards update, which is consistent with current practice. NEER’s operating revenues are derived primarily from the sale of energy. NEER continues to evaluate its individual contracts to determine if the amount or timing of recognition will differ materially from its current revenue recognition practice. NEE and FPL intend to apply this standards update using the modified retrospective approach with the cumulative effect, if any, recognized as an adjustment to retained earnings as of January 1, 2018.

~~Accounting for Partial Sales of Nonfinancial Assets~~ - In February ~~2017,~~2020, NEE sold $2.5 billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series K Debenture due March 1, 2025, issued in the ~~FASB issued an accounting standards update regarding~~principal amount of $1,000 by NEECH. Each stock purchase contract requires the ~~accounting~~holder to purchase by no later than March 1, 2023 (the final settlement date) for ~~partial sales~~a price of nonfinancial assets. NEE and FPL intend to apply this standards update retrospectively with the cumulative effect recognized as an adjustment to retained earnings and/or additional paid-in capital as of January 1, 2018, concurrent with the FASB's revenue recognition standards update. Based on NEE’s current analysis, this standards update is expected to affect the accounting and related financial statement presentation for the sales of differential membership interests to third-party investors and the sales of NEER assets to indirect subsidiaries of NEP. NEE anticipates the liability reflected as deferral related to differential membership interests - VIEs on NEE's consolidated balance sheets will be reclassified to noncontrolling interests and the amount currently being recognized$50 in benefits associated with differential membership interests - net in NEE's consolidated statements of income will be reflected as a reduction to net income attributable to noncontrolling interests. Additionally, NEE continues to evaluate the sales of differential membership interests to third-party investors to determine if the amount or timing of income attributed to differential membership interests could change materially from amounts recorded under its current accounting method. For NEER asset sales to NEP, NEE anticipates the profit sharing liability currently reflected in noncurrent other liabilities on NEE’s consolidated balance sheets will be reclassified to additional paid-in capital and will no longer be amortized into income. While NEE continues to evaluate this standards update for other potential impacts the adoption may have on its consolidated financial statements, the adoption of this standards update is not expected to have an impact on FPL.

~~Electric Plant, Depreciation and Amortization~~ - NEER reviews the estimated useful lives of its fixed assets on an ongoing basis. NEER's most recent review indicated that the actual lives of certain equipment at its wind plants are expected to be longer than those previously estimated for depreciation purposes. As a result, effective January 1, 2017, NEER changed the estimated useful lives of certain wind plant equipment from 30 years to 35 years to better reflect the period during which these assets are expected to remain in service. This change increased net income attributable to NEE by approximately $15 million and $45 million and basic

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~and diluted earnings~~cash, a number of shares of NEE common stock (subject to antidilution adjustments) based on a price per share ~~attributable~~range of $282.04 to $352.55. If purchased on the final settlement date, as of March 31, 2020, the number of shares issued would (subject to antidilution adjustments) range from 0.1773 shares if the applicable market value of a share of common stock is less than or equal to $282.04 to 0.1418 shares if the applicable market value of a share is equal to or greater than $352.55, with applicable market value to be determined using the average closing prices of NEE ~~by approximately $0.03~~common stock over a 20-day trading period ending February 24, 2023. Total annual distributions on the equity units are at the rate of 5.279%, consisting of interest on the debentures (1.84% per year) and ~~$0.09 for~~payments under the ~~three and nine months ended September 30, 2017, respectively. For~~stock purchase contracts (3.439% per year). The interest rate on the ~~year ended December 31, 2017 the change~~debentures is expected to ~~increase net income attributable~~be reset on or after August 25, 2022. A holder of an equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder's obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

In April 2020, NEECH sold $1.25 billion principal amount of its 2.75% Debentures, Series due May 1, 2025, which are fully and unconditionally guaranteed by NEE.

In the second quarter of 2016, a subsidiary of NEER completed the sale of the Texas natural gas generation facilities for net cash proceeds of approximately $456 million, after transaction costs and working capitalother adjustments. In connection with the sale, ~~and the related consolidating state income tax effects,~~ a gain of approximately ~~$254~~$260 million ~~($106 million~~(pretax and after tax) was recorded in NEE's condensed consolidated statements of income for the ~~nine~~three months ended ~~September 30, 2016 and is~~March 31, 2020. The carrying amounts of the major classes of assets related to the facilities that were classified as held for sale, which are included in ~~gains~~current other assets on ~~disposal of a business/assets - net.~~

~~Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve~~ - In September 2017, Hurricane Irma passed through Florida causing damage to much of FPL’s service territory. Damage to FPL’s property was primarily to its distribution facilities. Although FPL has not finalized its estimate of storm restoration costs associated with Hurricane Irma, as of September 30, 2017, FPL estimated storm restoration costs expected to be recoverable from customers through a surcharge to be approximately $1.3 billion, subject to prudence review by the FPSC. Prior to Hurricane Irma, the storm and property insurance reserve (storm reserve) had a deficit balance; therefore, the accrued storm restoration costs eligible for recovery have been deferred and recorded as a noncurrent regulatory asset (approximately $1.1 billion) with the remaining balance recorded as a current regulatory asset on NEE’s and FPL’sNEE's condensed consolidated balance sheets, aswere approximately $440 million at December 31, 2019 and primarily represent property, plant and equipment. Liabilities associated with assets held for sale, which are included in current other liabilities on NEE's condensed consolidated balance sheets, were approximately $647 million at December 31, 2019 and primarily represent long-term debt and interest rate derivatives.

Allowance for Doubtful Accounts - FPL maintains an accumulated provision for uncollectible customer accounts receivable that is estimated primarily using a surcharge equivalent to $4 on a 1,000 kWh residential bill beginning in March of 2018 to recover a portion of storm restoration costs. FPL expects to subsequently petition the FPSC to recover the remaining storm restoration costs, as well as to replenish the storm reserve to approximately $112 million, by the end of 2020. The unpaid portionpercentage, derived from historical revenue and write-off trends, of the ~~storm restoration costs at September 30, 2017, approximately $1.2 billion, is included in~~previous four months of revenue. NEER regularly reviews collectibility of its receivables and establishes a provision for losses estimated as a percentage of accounts receivable based on the historical bad debt write-off trends for its retail electricity provider operations. When necessary, NEER uses the specific identification method for all other ~~current liabilities~~receivables. Current events and reasonable and supportable forecasts are considered when reviewing all receivables for collectibility.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

At ~~September 30, 2017~~,March 31, 2020, estimated capital expenditures for the remainder of ~~2017~~2020 through ~~2021~~2024 for which applicable internal approvals (and also, if required, regulatory approvals such as FPSC approvals for FPL ~~or regulatory approvals for acquisitions)~~and Gulf Power) have been received were as follows:


	Remainder of 2017		2018		2019		2020		2021		Total		Remainder of 2020		2021		2022		2023		2024		Total
	(millions)												(millions)
FPL:
Generation:^(a)
New^(b)	$	350	$	625	$	550	$	1,310	$	950	$	3,785	$	980	$	885	$	550	$	490	$	710	$	3,615
Existing	380		845		675		615		475		2,990		750		950		1,075		1,155		885		4,815
Transmission and distribution(c)	590		2,725		2,530		2,465		2,680		10,990		2,450		4,040		4,110		4,450		4,450		19,500
Nuclear fuel	20		170		150		135		145		620		135		220		165		120		145		785
General and other	190		280		250		220		250		1,190		560		500		440		415		420		2,335
Total	$	1,530	$	4,645	$	4,155	$	4,745	$	4,500	$	19,575	$	4,875	$	6,595	$	6,340	$	6,630	$	6,610	$	31,050
Gulf Power													$	620	$	810	$	645	$	650	$	680	$	3,405
NEER:
Wind^(c)	$	350	$	1,925	$	1,175	$	45	$	20	$	3,515
Solar^(d)	115		40		5		—		—		160
Wind^(d)													$	2,580	$	180	$	10	$	10	$	10	$	2,790
Solar^(e)													855		485		—		5		—		1,345
Battery storage													85		455		—		—		—		540
Nuclear, including nuclear fuel	85		265		225		205		195		975		95		210		165		120		180		770
Natural gas pipelines^(e)	105		915		40		20		10		1,090
Natural gas pipelines^(f)													525		280		25		—		—		830
Rate-regulated transmission													235		140		30		10		15		430
Other	50		60		70		60		55		295		550		55		65		50		60		780
Total	$	705	$	3,205	$	1,515	$	330	$	280	$	6,035	$	4,925	$	1,805	$	295	$	195	$	265	$	7,485
Corporate and Other	$	20	$	60	$	85	$	55	$	40	$	260

Includes AFUDC of approximately $30$25 million,~~, $~~85 $70 million,~~, $~~49 $40 million,~~, $56~~ $20 million and ~~$35~~$30 million for the remainder of ~~2017~~2020 through ~~2021,~~2024, respectively.

Includes AFUDC of approximately $30 million, $55 million, $55 million, $40 million and $35 million for the remainder of 2020 through 2024, respectively.

Includes capital expenditures for new solar projects and related transmission totaling approximately ~~175~~1,580 MW.

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)~~

~~contract conditions. FPL has contracts with expiration dates through 2042 for the purchase and~~ transportation of natural gas and coal ~~and storage of natural gas. See Commitments above.~~with expiration dates through 2042.

~~As of~~ ~~September 30, 2017~~,At March 31, 2020, NEER has entered into contracts with expiration dates ranging from late ~~October 2017~~April 2020 through ~~2032~~2033 primarily for the purchase of wind turbines, wind towers and solar modules and related construction and development activities, as well as for the supply of uranium, and the conversion, enrichment and fabrication of nuclear fuel, and has made commitments for the construction of ~~the~~ natural gas ~~pipelines.~~pipelines and a rate-regulated transmission facility. Approximately ~~$2.5~~$4.0 billion of related commitments are included in the estimated capital expenditures table in Commitments above. In addition, NEER has contracts primarily for the ~~purchase,~~ transportation and storage of natural gas with expiration dates ranging from late ~~October 2017~~April 2020 through ~~2020.~~2040.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The required capacity and/or minimum payments under contracts, including those discussed above, ~~as of~~ ~~September 30, 2017~~at March 31, 2020 were estimated as follows:

Remainder of 2017 2018 2019 2020 2021 Thereafter
(millions)
FPL:
Capacity charges^(a)
$ 20
$ 65
$ 50
$ 20
$ 20
$ 250
Minimum charges, at projected prices:^(b)

Natural gas, including transportation and storage^(c)
$ 480
$ 1,305
$ 865
$ 910
$ 905
$ 12,135
Coal, including transportation $ 35
$ 35
$ 5
$ —
$ —
$ —
NEER $ 570
$ 1,455
$ 135
$ 105
$ 80
$ 390
Corporate and Other^(d)(e)
$ 55
$ 45
$ 15
$ 15
$ 10
$ —



	Remainder of 2020		2021		2022		2023		2024		Thereafter
	(millions)
FPL^(a)	$	800	$	1,010	$	990	$	975	$	970	$	11,350
NEER^(b)(c)(d)	$	3,170	$	585	$	260	$	180	$	185	$	1,395

———————————————

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 $~~450~~$450 million of private liability insurance per site, which is the maximum obtainable, and participates in a secondary financial protection system, which provides up to $~~13.0~~$13.5 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 $~~1.0~~$1.1 billion ($~~509~~550 million for FPL), plus any applicable taxes, per incident at any nuclear reactor in the U.S., payable at a rate not to exceed $~~152~~$164 million ($7682 million for FPL) per incident per year. NEE 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 $15$16 million,~~, $~~38 $41 million and $19$20 million,, plus any applicable taxes, per incident, respectively.

NEE participates in a nuclear insurance mutual company that provides $~~2.75~~$2.75 billion of limited insurance coverage per occurrence per site for property damage, decontamination and premature decommissioning risks at its nuclear plants and a sublimit of $1.5 billion for non-nuclear perils, except for Duane Arnold which has a sublimit of ~~$1.0 billion.~~$500 million. NEE participates in co-insurance of 10% of the first $400 million of losses per site per occurrence. The proceeds from such insurance, however, must first be used for reactor stabilization and site decontamination before they can be used for plant repair. 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 $~~178~~$173 million ($~~108~~106 million for FPL), plus any applicable taxes, in retrospective premiums in a policy year. NEE 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 $2$2 million,~~, $~~5 $4 million and $4$4 million,, plus any applicable taxes, respectively.

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

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 either FPL's or Gulf Power's future storm restoration costs exceed ~~the~~their respective storm reserve, FPL and Gulf Power may recover their storm restoration costs, subject to prudence review by the FPSC, ~~either~~ through surcharges approved by the FPSC or through securitization provisions pursuant to Florida law. ~~See Note 9 - Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve.~~

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 or Gulf Power, would be borne by NEE and either FPL or Gulf Power, and could have a material adverse effect on NEE's and FPL's financial condition, results of operations and liquidity.

~~11.~~

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

(unaudited)

The table below presents information for NEE's reportable segments, ~~are~~ FPL, a rate-regulated ~~electric~~ utility business, and NEER, awhich is comprised of competitive energy ~~business.~~and rate-regulated transmission businesses, as well as for Gulf Power, a rate-regulated utility business acquired in January 2019 (see Note 7 - Gulf Power). Corporate and Other represents other business activities and includes eliminating entries. ~~NEE's~~During the fourth quarter of 2019, NEET, which was previously reported in Corporate and Other, was moved to the NEER segment. Prior year amounts for NEER and Corporate and Other were adjusted to reflect this segment ~~information is as follows:~~change.

Three Months Ended September 30,
2017 2016
FPL
NEER^(a)

Corporate
and Other

NEE
Consoli-
dated
FPL
NEER^(a)

Corporate
and Other

NEE
Consoli-
dated
(millions)
Operating revenues $ 3,477
$ 1,333
$ (2 ) $ 4,808
$ 3,283
$ 1,430
$ 92
$ 4,805
Operating expenses (income) - net $ 2,455
$ 964
$ (10 ) $ 3,409
$ 2,362
$ 974
$ 190
$ 3,526
Net income (loss) attributable to NEE $ 566
$ 292
^(b)
$ (11 ) $ 847
$ 515
$ 307
^(b)
$ (69 ) $ 753



	March 31, 2020										December 31, 2019
	FPL		Gulf Power		NEER		Corporate and Other		NEE Consoli- dated		FPL		Gulf Power		NEER		Corporate and Other		NEE Consoli- dated
									(millions)
Total assets	$	58,317	$	6,240	$	51,455	$	4,625	$	120,637	$	57,188	$	5,855	$	51,516	$	3,132	$	117,691

September 30, 2017 December 31, 2016
FPL NEER
Corporate
and Other

NEE
Consoli-
dated
FPL NEER
Corporate
and Other

NEE
Consoli-
dated
(millions)
Total assets $ 49,915
$ 44,991
$ 1,875
$ 96,781
$ 45,501
$ 41,743
$ 2,749
$ 89,993

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

~~NEECH, a~~ ~~100%~~ owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL. NEECH’s debentures and junior subordinated debentures including those that were registered pursuant to the Securities Act of 1933, as amended, are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows:

~~Condensed Consolidating Statements of Income~~

Three Months Ended September 30,
2017 2016

NEE
(Guarantor)
NEECH
Other^(a)

NEE
Consoli-
dated

NEE
(Guarantor)
NEECH
Other^(a)

NEE
Consoli-
dated
(millions)
Operating revenues $ —
$ 1,365
$ 3,443
$ 4,808
$ —
$ 1,526
$ 3,279
$ 4,805
Operating expenses - net (3 ) (982 ) (2,424 ) (3,409 ) (5 ) (1,032 ) (2,489 ) (3,526 )
Interest expense (1 ) (259 ) (121 ) (381 ) —
(255 ) (114 ) (369 )
Equity in earnings of subsidiaries 830
—
(830 ) —
765
—
(765 ) —
Other income - net —
181
21
202
4
276
17
297
Income (loss) before income taxes 826
305
89
1,220
764
515
(72 ) 1,207
Income tax expense (benefit) (21 ) 30
355
364
11
141
266
418
Net income (loss) 847
275
(266 ) 856
753
374
(338 ) 789
Less net income attributable to noncontrolling interests —
9
—
9
—
36
—
36
Net income (loss) attributable to NEE $ 847
$ 266
$ (266 ) $ 847
$ 753
$ 338
$ (338 ) $ 753

~~———————————————~~

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(unaudited)~~

~~Condensed Consolidating Statements of Comprehensive Income~~

~~———————————————~~

~~Condensed Consolidating Balance Sheets~~

September 30, 2017 December 31, 2016

NEE
(Guaran-
tor)
NEECH
Other^(a)

NEE
Consoli-
dated

NEE
(Guaran-
tor)
NEECH
Other^(a)

NEE
Consoli-
dated
(millions)
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property $ 23
$ 41,530
$ 50,995
$ 92,548
$ 28
$ 38,671
$ 48,314
$ 87,013
Accumulated depreciation and amortization (16 ) (8,714 ) (12,730 ) (21,460 ) (18 ) (7,778 ) (12,305 ) (20,101 )
Total property, plant and equipment - net 7
32,816
38,265
71,088
10
30,893
36,009
66,912
CURRENT ASSETS

Cash and cash equivalents 1
1,370
10
1,381
1
1,258
33
1,292
Receivables 340
1,441
969
2,750
88
1,615
736
2,439
Other 4
1,257
1,635
2,896
2
1,877
1,799
3,678
Total current assets 345
4,068
2,614
7,027
91
4,750
2,568
7,409
OTHER ASSETS

Investment in subsidiaries 26,139
—
(26,139 ) —
24,323
—
(24,323 ) —
Other 821
10,152
7,693
18,666
867
8,992
5,813
15,672
Total other assets 26,960
10,152
(18,446 ) 18,666
25,190
8,992
(18,510 ) 15,672
TOTAL ASSETS $ 27,312
$ 47,036
$ 22,433
$ 96,781
$ 25,291
$ 44,635
$ 20,067
$ 89,993
CAPITALIZATION

Common shareholders' equity $ 26,398
$ 8,732
$ (8,732 ) $ 26,398
$ 24,341
$ 7,699
$ (7,699 ) $ 24,341
Noncontrolling interests —
923
—
923
—
990
—
990
Long-term debt —
20,290
10,055
30,345
—
18,112
9,706
27,818
Total capitalization 26,398
29,945
1,323
57,666
24,341
26,801
2,007
53,149
CURRENT LIABILITIES

Debt due within one year —
2,821
1,793
4,614
—
2,237
785
3,022
Accounts payable 1
1,559
696
2,256
1
2,668
778
3,447
Other 286
1,885
2,563
4,734
231
2,624
1,595
4,450
Total current liabilities 287
6,265
5,052
11,604
232
7,529
3,158
10,919
OTHER LIABILITIES AND DEFERRED CREDITS

Asset retirement obligations —
880
2,002
2,882
—
816
1,920
2,736
Deferred income taxes 37
3,439
9,087
12,563
82
3,002
8,017
11,101
Other 590
6,507
4,969
12,066
636
6,487
4,965
12,088
Total other liabilities and deferred credits 627
10,826
16,058
27,511
718
10,305
14,902
25,925
COMMITMENTS AND CONTINGENCIES

TOTAL CAPITALIZATION AND LIABILITIES $ 27,312
$ 47,036
$ 22,433
$ 96,781
$ 25,291
$ 44,635
$ 20,067
$ 89,993

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)~~

~~(unaudited)~~

~~Condensed Consolidating Statements of Cash Flows~~

~~———————————————~~

Per Share Attributable to NEE,

~~Adjusted earnings exclude the effect of non-qualifying hedges (as described below) and~~ ~~OTTI~~ ~~losses on securities held in~~ ~~NEER’s nuclear decommissioning funds, net~~The following table provides details of the ~~reversal of previously recognized~~ ~~OTTI~~ ~~losses on securities sold and losses on securities where price recovery was deemed unlikely (collectively,~~ ~~OTTI~~ ~~reversals). However, other~~after-tax adjustments ~~may be made from time~~ to ~~time with the intent to provide more meaningful and comparable results of ongoing operations.~~net income considered in computing NEE's adjusted earnings discussed above.



	Three Months Ended March 31,
	2020			2019
	(millions)
Net losses associated with non-qualifying hedge activity^(a)	$	(718	)	$	(366	)
Differential membership interests-related - NEER	$	(25	)	$	(22	)
NEP investment gains, net - NEER	$	(36	)	$	(36	)
Gain on disposal of a business - NEER^(b)	$	258		$	—
Change in unrealized gains (losses) on NEER's nuclear decommissioning funds and OTTI, net - NEER	$	(229	)	$	84
Operating results of solar projects in Spain - NEER	$	1		$	1
Acquisition-related - Corporate and Other	$	—		$	(41	)

NEE segregates into two categories unrealized mark-to-market gains and losses and timing impacts related to derivative transactions. The first category, referred to as non-qualifying hedges, represents certain energy derivative, interest rate derivative

In order to make period to period comparisons more meaningful, adjusted earnings also exclude expenses associated with the proposed merger between NEE, Hawaiian Electric Industries, Inc. (HEI) and two wholly owned direct subsidiaries of NEE, which was terminated effective July 16, 2016, and expenses associated with the Oncor-related transactions discussed in Note 5, the after-tax operating results associated with the solar projects in Spain, the after-tax gains, including consolidating state income tax effects, on the January 2017 sale of the fiber-optic telecommunications business and the April 2016 sale of NEER's ownership interests in the Texas natural gas generation facilities (see Note 9 - Assets and Liabilities Associated with Assets Held for Sale) and the resolution of contingencies related to a previous asset sale which was recorded in the first quarter of 2016 as gains on disposal of investments and other property - net in NEE's condensed consolidated statements of income.

~~The following table provides details of the after-tax adjustments to net income considered in computing NEE's adjusted earnings discussed above.~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(millions)
Net gains (losses) associated with non-qualifying hedge activity^(a)
$ (39 ) $ 27
$ (21 ) $ (389 )
Income (losses) from OTTI on securities held in NEER's nuclear decommissioning funds, net of OTTI reversals^(b)
$ 5
$ —
$ 4
$ (4 )
Operating results of solar projects in Spain - NEER $ 8
$ —
$ 8
$ (4 )
Merger-related expenses - Corporate and Other $ (2 ) $ (83 ) $ (28 ) $ (88 )
Gain on sale of the fiber-optic telecommunications business - Corporate and Other $ —
$ —
$ 685
$ —
Gain on sale of the Texas natural gas generation facilities^(c)
$ —
$ —
$ —
$ 106
Resolution of contingencies related to a previous asset sale - NEER $ —
$ —
$ —
$ 5

~~———————————————~~

The change in non-qualifying hedge activity is primarily attributable to changes in forward power and natural gas prices, interest rates and foreign currency exchange rates, as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized.

FPL's increase in net income for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2020 was primarily driven by continued investments in plant in service and other ~~property while earning~~property. During both 2020 and 2019, FPL earned an ~~11.50%~~11.60% regulatory ROE on its retail rate ~~base.~~base, based on a trailing thirteen-month average retail rate base as of March 31, 2020 and March 31, 2019, respectively.

~~NEER's~~Gulf Power's results ~~decreased~~increased slightly for the three months ended ~~September 30, 2017~~March 31, 2020.

NEER's results decreased slightly for the three months ended March 31, 2020 primarily reflecting ~~losses from~~unfavorable changes in the fair value of equity securities in NEER's nuclear decommissioning funds compared to 2019, mostly offset by the gain recognized on the sale of the Spain projects and higher earnings on existing generation assets and new investments.

~~Corporate and Other's results~~ ~~increased for the~~ ~~three months ended September 30, 2017~~ ~~primarily due to lower merger-related expenses, partly offset by higher losses from non-qualifying hedge activity. Corporate and Other's results increased for the~~ ~~nine months ended September 30, 2017~~ primarily due to the gain on sale of the fiber-optic telecommunications business, lower merger-related expenses and the absence of a 2016 income tax charge related to the sale of the Texas natural gas generation facilities.

NEE's effective income tax rates for the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016~~2019 were approximately ~~30%~~(322)% and ~~35%, respectively, and for the nine months ended September 30, 2017 and 2016 were 29% and 31%~~11%, respectively. ~~The rates~~See Note 6 for ~~all periods reflect the benefit~~a discussion of ~~PTCs for NEER's wind projects, as well as ITCs~~NEE's and ~~deferred income taxes associated with convertible ITCs for solar and certain wind projects at NEER. PTCs, ITCs and deferred income taxes associated with convertible ITCs can~~

~~significantly affect NEE's~~FPL's effective income tax ~~rate depending on~~rates.

NEE and FPL are closely monitoring the ~~amount~~global outbreak of ~~pretax income. The amount of PTCs recognized can be significantly affected~~COVID-19 and are taking steps intended to mitigate the potential risks to NEE and FPL posed by wind generation and by PTC roll off. PTCs for the three months ended September 30, 2017 and 2016 were approximately $27 million and $19 million, respectively, and for the comparable nine-month periods were $85 million and $92 million. ITCs and deferred income taxes associated with convertible ITCs for the ~~three months ended September 30, 2017 and 2016~~ were approximately $51 million and $34 million, respectively, and for the comparable nine-month periods were $220 million and $115 million. In addition, the rates for the nine months ended September 30, 2016 reflect a consolidating income tax adjustment of approximately $58 million related to the sale of the Texas natural gas generation facilities and noncash income tax benefits of approximately $30 million ($26 million attributable to NEE) related to the Canadian tax restructuring.COVID-19. See Note 4.12 - Coronavirus Pandemic.

~~The $51 million and $181 million increase in FPL's net income for the three and nine months ended September 30, 2017, respectively, was primarily driven by higher earnings from investments~~Investments in plant in service and other ~~property. Such investments~~property grew FPL's average retail rate base for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2020 by approximately ~~$2.8~~$3.7 billion, ~~and $3.1 billion, respectively,~~ when compared to the same ~~periods~~period in the prior year, reflecting, among other things, ~~the replacement of certain gas turbines with high-efficiency, low-emission turbines,~~solar generation additions and ongoing transmission and distribution additions and, ~~for~~at the ~~nine months ended September 30, 2017,~~end of the ~~modernized Port Everglades~~first quarter of 2019, the Okeechobee Clean Energy Center, ~~that was placed in service on April 1, 2016 (Port Everglades power plant).~~an approximately 1,750 MW natural gas-fired combined-cycle unit, achieved commercial operation.

The use of reserve amortization ~~for the three and nine months ended September 30, 2017~~ is permitted by a December 2016 FPSC final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding (2016 rate agreement) ~~and, for the prior periods, a January 2013 FPSC final order approving a stipulation and settlement between FPL and several intervenors in a prior base rate proceeding (2012 rate agreement)~~. In order to earn a targeted regulatory ROE, subject to limitations associated with the 2016 ~~and 2012~~ rate ~~agreements,~~agreement, reserve amortization is calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items must be adjusted, in part, by reserve amortization to earn the targeted regulatory ROE. In certain periods, reserve amortization is reversed so as not to exceed the targeted regulatory ROE. The drivers of FPL's net income not reflected in the reserve amortization calculation typically include wholesale and transmission service revenues and expenses, cost recovery clause revenues and expenses, AFUDC - equity ~~and~~as well as revenue and costs not recoverable from retail customers by the FPSC. During the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016, FPL recorded the reversal of reserve amortization of approximately $124 million and $159 million, respectively. During the nine months ended September 30, 2017 and 2016,~~2019, FPL recorded reserve amortization of approximately ~~$104~~$149 million and ~~$33~~$156 million, respectively.

In ~~September 2017, Hurricane Irma passed through Florida causing damage~~March 2020, the FPSC approved FPL’s SolarTogether program, a voluntary community solar program that gives FPL customers an opportunity to ~~much~~participate directly in the expansion of ~~FPL’s~~solar energy and receive credits on their monthly FPL bill for savings generated. The program includes the addition of 20 dedicated 74.5 MW new solar power plants owned and operated by FPL. As of March 31, 2020, 6 of the 20 plants have been placed into service. The remainder of the plants are expected to be placed into service territory, resulting in approximately 4.4 million of FPL’s customers losing electrical service. FPL restored power to approximately 50% of its affected customers within one day and to approximately 95% of affected customers within seven days. See Note 9 - Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve.by mid-2021.

During the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2020, FPL’s operating revenues ~~increased $194~~decreased $78 million. The decrease reflects lower fuel revenues of approximately $141 million ~~and $758 million, respectively,~~ primarily related to ~~increases~~lower fuel and energy prices as well as lower storm-related revenues. These decreases were partly offset by an increase of ~~approximately $87~~$94 million ~~and $310 million, respectively,~~ in retail base revenues increases of $92 million and $194 million, respectively, in storm fund revenues, increases of $61 million and $140 million, respectively, in fuel cost recovery and, for the three months ended September 30, 2017, the absence of $79 million of net recognition of deferred retail fuel revenues in the prior year comparable period. The increases in retail base revenues reflectreflecting additional revenues ~~during the three and nine months ended September 30, 2017~~ of ~~approximately $115 million and $262 million, respectively, related to new retail base rates under the 2016 rate agreement. The increase for the~~ ~~nine months ended September 30, 2017~~ ~~also reflects~~ approximately $45 million ~~of additional revenues~~ related to retail base rate increases primarily associated with the ~~Port Everglades power plant.~~Okeechobee Clean Energy Center and the addition of new solar generation in 2019. Retail base revenues during the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2020 were also impacted by ~~a 4.3% decrease and 2.5% decrease, respectively,~~an increase of 1.8% in the average usage per retail customer and ~~a 1.3%~~an increase ~~for both periods~~of 1.4% in the average number of customer accounts. Hurricane Irma contributed to the decrease in retail usage for the three and nine months ended September 30, 2017, resulting in a decrease in retail base revenues of approximately $60 million for both periods which represents a 1.9% and 0.7% decrease in operating revenues, respectively. The increases in storm fund revenues relate to FPL's recovery of eligible storm restoration costs following hurricanes impacting FPL's service territory in 2016 and replenishment of the storm reserve for a 12-month period beginning on March 1, 2017. The increases in fuel cost recovery revenues primarily reflect higher average fuel factors resulting in higher revenues of approximately $106 million and $186 million during the three and nine months ended September 30, 2017, respectively, partly offset by decreased revenues related to lower energy sales. During the three months ended September 30, 2016, FPL’s revenues included the recognition of deferred retail fuel revenues of approximately $79 million due to the overrecovery of costs through rates largely related to lower natural gas costs than previously estimated.

Fuel, purchased power and interchange expense decreased ~~$9 million and increased $140~~$143 million for the three ~~and nine~~ months ended ~~September 30, 2017, respectively. The increase for the nine months ended September 30, 2017~~March 31, 2020 primarily ~~relates to approximately $243 million of higher~~reflecting lower fuel and energy ~~prices, partly offset by a decrease of $76 million in capacity fees primarily~~prices.

related to the Indiantown generation facility long-term purchased power agreement after FPL assumed ownership of the Indiantown generation facility in January 2017 (see Note 10 - Contracts) and lower volumes due to lower energy sales.

Depreciation and amortization expense increased ~~$117 million and $307~~$27 million during the three ~~and nine~~ months ended ~~September 30, 2017, respectively,~~March 31, 2020. The increase in depreciation and amortization expense during the three months ended March 31, 2020 primarily ~~reflecting~~reflects increased depreciation related to higher ~~depreciation rates~~plant in service balances partly offset by lower storm-recovery cost amortization primarily as a result of the ~~2016 rate agreement and higher plant~~final payment of the storm-recovery bonds in ~~service balances. FPL recorded a reversal~~the third quarter of ~~$124 million reserve amortization in~~2019. During the three months ended ~~September 30, 2017 compared to a reversal of $159 million in the three months ended September 30, 2016. In the nine months ended September 30, 2017,~~March 31, 2020 and 2019, FPL recorded reserve amortization of ~~$104~~approximately $149 million ~~compared to $33~~and $156 million, ~~in the nine months ended September 30, 2016.~~respectively. Reserve amortization reflects adjustments to ~~accumulated depreciation and the fossil dismantlement reserve~~accrued asset removal costs provided under the 2016 ~~and 2012~~ rate ~~agreements~~agreement in order to achieve the targeted regulatory ROE. ~~At September 30, 2017, approximately $1,146 million of the reserve remains available for future amortization over the term of the 2016 rate agreement.~~ Reserve amortization is recorded as a reduction to accrued asset removal costs which is reflected in noncurrent regulatory liabilities on the condensed consolidated balance sheets. At March 31, 2020, approximately $744 million remains in accrued asset removal costs related to reserve amortization.

~~During~~Gulf Power's net income attributable to NEE increased $3 million for the ~~nine~~three months ended ~~September 30, 2017, FPL commenced construction on eight 74.5 MW solar sites being developed under~~March 31, 2020. Operating revenues were approximately $328 million for both the 2016 rate agreement, which provides for base rate increases associated with the addition of up to 300 MW annually in each of 2017 through 2020. In addition, FPL expects to develop an additional 1,000 MW of solar projects planned forthree months ended March 31, 2020 and 2019 and ~~beyond. In October 2017, FPL filed a need petition with~~operating expenses decreased $1 million for the FPSC to modernize its two generating units at its Lauderdale facility to a highly efficient, clean-burning natural gas unit (Dania Beach Clean Energy Center). The Dania Beach Clean Energy Center is expected to provide approximately 1,200 MW of generating capacity, be in service by mid-2022 and cost approximately $900 million. The Dania Beach Clean Energy Center is contingent upon, among other things, FPSC approval and approval of the Siting Board (comprised of the governor and cabinet) under the Florida Electrical Power Plant Siting Act. The Office of Public Counsel has intervened in the FPSC approval process.three months ended March 31, 2020.

In October 2017, FPL entered into a purchase agreement with the City of Vero Beach to purchase substantially all of the assets of the municipal electric system, which services approximately 34,000 customers, for approximately $185 million. The purchase agreement is contingent upon, among other things, FPSC and other regulatory approvals and is expected to close in late 2018.

NEER: Results of Operations

Gas infrastructure^(a)

Customer supply and proprietary power and gas trading^(b)

Interest and other general and administrative expenses^(c)

Change in non-qualifying hedge activity^(d)

Operating results of the solar projects in Spain^(d)

Results from new investments for the three months ended ~~September 30, 2017~~March 31, 2020 increased primarily due ~~to:~~

~~Results from new investments for the nine months ended September 30, 2017 increased primarily due to:~~

~~The decrease in results~~Results from existing assets for the three months ended ~~September 30, 2017~~March 31, 2020 increased primarily ~~relates~~due to ~~lower wind resource. The decrease in~~higher results from ~~existing assets for the nine months ended September 30, 2017 primarily relates to lower results~~wind generation facilities related to ~~the sale of natural gas generation facilities in 2016 and the absence of the 2016 income tax benefits related~~more favorable wind resource as compared to the ~~Canadian~~prior year period and increased tax ~~restructuring (see Note 4).~~credits from repowered wind generation facilities.

The decrease in gas infrastructure results for the three and nine months ended September 30, 2017 reflects the absence of $41 million and $48 million, respectively, of after-tax fair value adjustments recorded in 2016 to reduce the contingent holdback (see Note 3 - Contingent Consideration), partly offset by lower depreciation expense reflecting lower depletion rates and higher results due to additional production. The decrease in gas infrastructure results for the nine months ended September 30, 2017 also reflects lower gains from exiting the hedged positions on a number of future gas production opportunities; such gains were previously reflected in non-qualifying hedge activity. NEER continues to monitor its oil and gas producing properties for potential impairments due to low prices for oil and natural gas commodity products.

~~For the three and nine months ended September 30, 2017, interest and other general and administrative expenses reflect higher borrowing and other costs to support the growth of the business.~~

Supplemental to the primary drivers of the changes in NEER's net income less net ~~income~~loss attributable to noncontrolling interests discussed above, the discussion below describes changes in certain line items set forth in NEE's condensed consolidated statements of income as they relate to NEER.

Operating revenues for the three months ended ~~September 30, 2017 decreased $97~~March 31, 2020 increased $612 million primarily due to:

~~partly offset by,~~

~~Operating revenues for the nine months ended September 30, 2017 increased $211 million primarily due to:~~

Operating expenses - net for the three months ended ~~September 30, 2017~~March 31, 2020 decreased ~~$10~~$159 million primarily due ~~to:~~

~~partly offset by,~~

~~Operating expenses - net for the nine months ended September 30, 2017 increased $277 million primarily due to:~~

~~partly offset by,~~

NEER’s interest expense for the three months ended ~~September 30, 2017 decreased~~March 31, 2020 increased approximately ~~$27~~$107 million primarily reflecting $7$125 million of ~~favorable~~unfavorable impacts related to changes in the fair value of interest rate derivative ~~instruments~~instruments.

NEER recognized $390 million of equity in losses of equity method investees for the three months ended March 31, 2020 compared to ~~$44~~$16 million of ~~unfavorable changes~~equity in ~~the comparable period in 2016. NEER’s interest expense~~earnings of equity method investees for the ~~nine~~prior year period. The change for the three months ended ~~September 30, 2017~~ ~~decreased approximately $253 million~~March 31, 2020 primarily ~~reflecting $38 million~~reflects equity in losses of NEP recorded in 2020 primarily related to unfavorable impacts related to changes in the fair value of interest rate derivative ~~instruments compared to $355 million of unfavorable changes in~~instruments. The losses during the ~~comparable period in 2016. The decreases discussed above~~three months ended March 31, 2020 were partly offset by ~~higher borrowing costs to support growth~~increased equity in earnings of ~~the business.~~other equity method investees.

Benefits associated with differential membership interests - net for all periods presented reflect benefits recognized by NEER as third-party investors received their portion of the economic attributes, including income tax attributes, of the underlying wind and solar projects, net of associated costs. The increase of approximately $91 million for the nine months ended September 30, 2017 primarily relates to lower interest costs associated with the ongoing paydown of the differential membership interest obligations and sales of differential membership interests.

For the three ~~and nine~~ months ended September 30, 2016, revaluation of contingent consideration reflects fair value adjustments of approximately $101 million and $118 million, respectively, to reduce the contingent holdback associated with the acquisition of the Texas pipelines. For the three and nine months ended September 30, 2016, approximately $35 million and $40 million, respectively, ofMarch 31, 2020, changes in the fair value ~~adjustments is attributable~~of equity securities in NEER's nuclear decommissioning funds, primarily equity securities in NEER's special use funds, relate to ~~noncontrolling interests. See Note 3 - Contingent Consideration.~~unfavorable market conditions in 2020 compared to favorable market conditions in 2019.

During the nine months ended September 30, 2017, NEER placed into service approximately 99 MW of new wind generation, 635 MW of wind repowering generation and 145 MW of new solar generation. NEER expects to add approximately 5,400 MW to 8,400 MW of new wind generation, 3,300 MW to 4,300 MW of wind repowering generation and 1,400 MW to 3,800 MW of new solar generation during 2017 through 2020. In addition, during the second quarter of 2017, the Sabal Trail and Florida Southeast Connection natural gas pipeline projects commenced commercial operations.

In May 2017, an indirect subsidiary of NEER sold a 249 MW wind generation facility located in El Paso County, Colorado to an indirect subsidiary of NEP. In October 2017, an indirect subsidiary of NEER agreed to sell interests in four wind and solar generation facilities with generating capacity totaling approximately 691 MW to an indirect subsidiary of NEP. NEER expects to complete the sale before December 31, 2017, subject to customary closing conditions and the receipt of certain regulatory approvals.

During the third quarter of 2017, changes to NEP's governance structure were made that, among other things, enhanced NEP unitholder governance rights. The new governance structure established a NEP board of directors where NEP unitholders will have the ability to nominate and elect board members, subject to certain limitations and requirements. As a result of these governance changes, NEE expects to deconsolidate NEP beginning in January 2018, which is when the term of office of the first NEP unitholder-

elected directors is expected to take effect. As a result of the deconsolidation of NEP, NEE will reflect its ownership interest in NEP as an equity method investment and future earnings from NEP as earnings from equity method investments in its consolidated financial statements. The equity method investment will be recorded at fair value which is expected to result in a material gain to NEE at the time of deconsolidation. Additionally, sales of assets to NEP after deconsolidation will be accounted for as third-party sales because NEP will no longer be under common control.

Corporate and Other's results ~~increased $58 million and $792~~decreased $313 million during the three ~~and nine~~ months ended ~~September 30, 2017, respectively.~~March 31, 2020. The ~~increase~~decrease for the three months ended ~~September 30, 2017~~March 31, 2020 primarily reflects higher after-tax losses of approximately $345 million related to non-qualifying hedge activity as a ~~decrease~~result of unfavorable impacts related to changes in ~~merger-related expenses,~~the fair value of interest rate derivative instruments, partly offset by higher interest expense primarily related to higher net after-tax losses on interest rate and foreign currency derivative instruments and foreign currency transaction losses compared to the prior year period. The increase for the nine months ended September 30, 2017 is primarily due to the approximately $685 million after-tax gain on sale of the fiber-optic telecommunications business in January 2017. See Note 9 - Assets and Liabilities Associated with Assets Held for Sale. In addition, Corporate and Other's results reflect a decrease in merger-related expenses and the absence of ~~a 2016 income tax charge of approximately $58 million related to the sale of the Texas natural gas generation facilities (see Note 4).~~acquisition and integration costs incurred in 2019.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

NEE's sources and uses of cash for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016~~2019 were as follows:


	Nine Months Ended September 30,						Three Months Ended March 31,
	2017			2016			2020			2019
	(millions)						(millions)
Sources of cash:
Cash flows from operating activities	$	5,160		$	5,294		$	1,894		$	1,597
Long-term borrowings	5,196			4,644
Proceeds from differential membership investors	340			328
Proceeds from sale of the fiber-optic telecommunications business	1,482			—
Sale of independent power and other investments of NEER	159			395
Issuances of long-term debt							4,354			2,768
Payments from related parties under a cash sweep and credit support agreement – net							48			—
Issuances of common stock - net	36			528			—			20
Net increase in commercial paper and other short-term debt	2,004			392			685			—
Proceeds from sales of noncontrolling interests in NEP	—			645
Other sources - net	198			—			152			137
Total sources of cash	14,575			12,226			7,133			4,522
Uses of cash:
Capital expenditures, independent power and other investments and nuclear fuel purchases	(8,587		)	(7,929		)
Capital expenditures, acquisitions, independent power and other investments and nuclear fuel purchases^(a)							(3,284		)	(7,029		)
Retirements of long-term debt	(3,892		)	(2,654		)	(312		)	(166		)
Net decrease in commercial paper and other short-term debt							—			(498		)
Payments to related parties under a cash sweep and credit support agreement – net							—			(24		)
Issuances of common stock/equity units - net							(57		)	—
Dividends	(1,382		)	(1,205		)	(685		)	(598		)
Other uses - net	(625		)	(328		)	(75		)	(128		)
Total uses of cash	(14,486		)	(12,116		)	(4,413		)	(8,443		)
Net increase in cash and cash equivalents	$	89		$	110
Effects of currency translation on cash, cash equivalents and restricted cash							6			9
Net increase (decrease) in cash, cash equivalents and restricted cash							$	2,726		$	(3,912	)

Corporate and Other (2019 primarily related to the acquisition of Gulf Power, see Note 7)^(a)

In October 2017, NEECH announced that on November 9, 2017 it will redeem approximately $309 million aggregate principal amount of its 5 7/8% Junior Subordinated Debentures, Series due 2044, the sole asset of an unconsolidated trust created by NEE in 2004. This redemption will result in the redemption by the trust of $300 million aggregate amount of FPL Group Capital Trust I's 5 7/8% Preferred Trust Securities.

~~Additionally, at September 30, 2017, certain subsidiaries of NEP had credit or loan facilities with available liquidity as set forth in the table below.~~

Amount
Amount
Remaining
Available at
September 30, 2017
Rate
Maturity
Date
Related Project Use
(millions)
Senior secured revolving credit facility^(a)
$250 $250 Variable 2019 Working capital, expansion projects, acquisitions and general business purposes
Senior secured limited-recourse revolving loan facility^(b)
$150 $— Variable 2020 General business purposes

~~———————————————~~

In June 2017, NEP entered into a Series A Preferred Unit Purchase Agreement to issue and sell, on or before December 31, 2017, $550 million of Series A convertible preferred units representing limited partner interests in NEP. See Note 7 - NEP Series A Preferred Unit Purchase Agreement for more information.

Certain subsidiaries of NEE issue guarantees and obtain letters of credit and surety bonds, as well as provide indemnities, to facilitate commercial transactions with third parties and financings. Substantially all of the guarantee arrangements are on behalf of NEE’s consolidated subsidiaries, as discussed in more detail below. NEE is not required to recognize liabilities associated with guarantee arrangements issued on behalf of its consolidated subsidiaries unless it becomes probable that they will be required to perform. At ~~September 30, 2017,~~March 31, 2020, NEE believes that there is no material exposure related to these guarantee arrangements.

NEE subsidiaries issue guarantees related to equity contribution agreements associated with the development, construction and financing of certain power generation facilities, engineering, procurement and construction agreements and equity contributions associated with natural gas pipeline projects under development ~~projects.~~and construction and a related natural gas transportation agreement. Commitments associated with these activities are included in the contracts table in Note ~~10.~~12.

In addition, ~~as of September 30, 2017,~~at March 31, 2020, NEE subsidiaries had approximately ~~$2.6~~$3.5 billion in guarantees related to obligations under purchased power agreements, nuclear-related activities, payment obligations related to PTCs, as well as other types of contractual obligations.

In some instances, subsidiaries of NEE elect to issue guarantees instead of posting other forms of collateral required under certain financing arrangements, as well as for other project-level cash management activities. ~~As of September 30, 2017,~~At March 31, 2020, these guarantees totaled approximately ~~$743~~$366 million and support, among other things, cash management activities, including those related to debt service and O&M service agreements, as well as other specific project financing requirements.

Subsidiaries of NEE also issue guarantees to support customer supply and proprietary power and gas trading activities, including the buying and selling of wholesale and retail energy commodities. ~~As of September 30, 2017,~~At March 31, 2020, the estimated mark-to-market exposure (the total amount that these subsidiaries of NEE could be required to fund based on energy commodity market prices at ~~September 30, 2017)~~March 31, 2020) plus contract settlement net payables, net of collateral posted for obligations under these guarantees totaled approximately ~~$703~~$566 million.

~~As of September 30, 2017,~~

At March 31, 2020, subsidiaries of NEE also had approximately ~~$1.1~~$1.6 billion of standby letters of credit and approximately ~~$401~~$672 million of surety bonds to support certain of the commercial activities discussed above. FPL's and NEECH's credit facilities are available to support the amount of the standby letters of credit.

In addition, as part of contract negotiations in the normal course of business, certain subsidiaries of NEE have agreed and in the future may agree to make payments to compensate or indemnify other parties, including those associated with asset divestitures, for possible unfavorable financial consequences resulting from specified events. The specified events may include, but are not limited to, an adverse judgment in a lawsuit or the imposition of additional taxes due to a change in tax law or interpretations of the tax law, or the triggering of cash grant recapture provisions under the Recovery Act. NEE is unable to estimate the maximum potential amount of future payments under some of these contracts because events that would obligate them to make payments have not yet occurred or, if any such event has occurred, they have not been notified of its occurrence.

Certain guarantee arrangements described above contain requirements for NEECH and FPL to maintain a specified credit rating.

NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL and Gulf Power. NEE has fully and unconditionally guaranteed certain payment obligations of NEECH, including most of its debt and all of its debentures registered pursuant to the Securities Act of 1933 and commercial paper issuances, as well as most of its payment guarantees and indemnifications, and NEECH has guaranteed certain debt and other obligations of subsidiaries within the NEER segment.



	Three Months Ended March 31, 2020						Year Ended December 31, 2019
	NEE (Guarantor)			NEECH			NEE (Guarantor)			NEECH
	(millions)
Operating revenues	$	—		$	1,782		$	—		$	5,671
Operating income (loss)	$	(58	)	$	1,065		$	(209	)	$	2,002
Net income (loss)	$	421		$	(391	)	$	3,769		$	900
Net income (loss) attributable to NEE/NEECH	$	421		$	(278	)	$	3,769		$	1,281



	March 31, 2020				December 31, 2019
	NEE (Guarantor)		NEECH		NEE (Guarantor)		NEECH
	(millions)
Total current assets	$	147	$	5,662	$	98	$	4,637
Total noncurrent assets	$	36,757	$	48,168	$	37,247	$	47,681
Noncontrolling interests	$	—	$	4,472	$	—	$	4,355
Total current liabilities	$	307	$	9,755	$	170	$	8,533
Total noncurrent liabilities	$	194	$	31,024	$	170	$	27,893

~~Accounting for Partial Sales of Nonfinancial Assets~~ ~~- In February 2017, the FASB issued an accounting standards update regarding the accounting for partial sales of nonfinancial assets. See Note 9 - Accounting for Partial Sales of Nonfinancial Assets.~~

ENERGY MARKETING AND TRADING AND MARKET RISK SENSITIVITY

Commodity Price Risk

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2020 were as follows:



				Hedges on Owned Assets
	Trading			Non- Qualifying			FPL Cost Recovery Clauses			Gulf Power Cost Recovery Clauses			NEE Total
	(millions)
Three months ended March 31, 2020
Fair value of contracts outstanding at December 31, 2019	$	651		$	1,209		$	(10	)	$	(1	)	$	1,849
Reclassification to realized at settlement of contracts	(138		)	(119		)	2			1			(254		)
Value of contracts acquired	86			(40		)	—			—			46
Net option premium purchases (issuances)	—			1			—			—			1
Changes in fair value excluding reclassification to realized	111			515			(4		)	—			622
Fair value of contracts outstanding at March 31, 2020	710			1,566			(12		)	—			2,264
Net margin cash collateral paid (received)													(74		)
Total mark-to-market energy contract net assets (liabilities) at March 31, 2020	$	710		$	1,566		$	(12	)	$	—		$	2,190

Hedges on Owned Assets
Trading Non-
Qualifying FPL Cost
Recovery
Clauses NEE Total
(millions)
Three months ended September 30, 2017
Fair value of contracts outstanding at June 30, 2017 $ 436
$ 1,074
$ 16
$ 1,526
Reclassification to realized at settlement of contracts (74 ) (4 ) 1
(77 )
Inception value of new contracts 4
—
—
4
Net option premium purchases (issuances) (23 ) —
—
(23 )
Changes in fair value excluding reclassification to realized 81
37
(13 ) 105
Fair value of contracts outstanding at September 30, 2017 424
1,107
4
1,535
Net margin cash collateral paid (received) (53 )
Total mark-to-market energy contract net assets (liabilities) at September 30, 2017 $ 424
$ 1,107
$ 4
$ 1,482

Hedges on Owned Assets
Trading
Non-
Qualifying

FPL Cost
Recovery
Clauses
NEE Total
(millions)
Nine months ended September 30, 2017
Fair value of contracts outstanding at December 31, 2016 $ 430
$ 984
$ 208
$ 1,622
Reclassification to realized at settlement of contracts (194 ) (151 ) (40 ) (385 )
Inception value of new contracts 8
—
—
8
Net option premium purchases (issuances) (91 ) 4
—
(87 )
Changes in fair value excluding reclassification to realized 271
270
(164 ) 377
Fair value of contracts outstanding at September 30, 2017 424
1,107
4
1,535
Net margin cash collateral paid (received) (53 )
Total mark-to-market energy contract net assets (liabilities) at September 30, 2017 $ 424
$ 1,107
$ 4
$ 1,482

NEE's total mark-to-market energy contract net assets (liabilities) at ~~September 30, 2017~~March 31, 2020 shown above are included on the condensed consolidated balance sheets as follows:

The sources of fair value estimates and maturity of energy contract derivative instruments at ~~September 30, 2017~~March 31, 2020 were as follows:

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three ~~and nine~~ months ended ~~September 30, 2016~~March 31, 2019 were as follows:

Hedges on Owned Assets
Trading
Non-
Qualifying

FPL Cost
Recovery
Clauses

NEE
Total
(millions)
Three months ended September 30, 2016
Fair value of contracts outstanding at June 30, 2016 $ 445
$ 1,010
$ 39
$ 1,494
Reclassification to realized at settlement of contracts (73 ) (56 ) 25
(104 )
Inception value of new contracts 10
(2 ) —
8
Changes in fair value excluding reclassification to realized 24
240
(36 ) 228
Fair value of contracts outstanding at September 30, 2016 406
1,192
28
1,626
Net margin cash collateral paid (received)

(241 )
Total mark-to-market energy contract net assets (liabilities) at September 30, 2016 $ 406
$ 1,192
$ 28
$ 1,385

Hedges on Owned Assets
Trading
Non-
Qualifying

FPL Cost
Recovery
Clauses

NEE
Total
(millions)
Nine months ended September 30, 2016
Fair value of contracts outstanding at December 31, 2015 $ 359
$ 1,185
$ (218 ) $ 1,326
Reclassification to realized at settlement of contracts (146 ) (338 ) 211
(273 )
Inception value of new contracts 29
15
—
44
Net option premium purchases (issuances) (13 ) 3
—
(10 )
Changes in fair value excluding reclassification to realized 177
327
35
539
Fair value of contracts outstanding at September 30, 2016 406
1,192
28
1,626
Net margin cash collateral paid (received)

(241 )
Total mark-to-market energy contract net assets (liabilities) at September 30, 2016 $ 406
$ 1,192
$ 28
$ 1,385



				Hedges on Owned Assets
	Trading			Non- Qualifying			FPL Cost Recovery Clauses			Gulf Power Cost Recovery Clauses			NEE Total
	(millions)
Three months ended March 31, 2019
Fair value of contracts outstanding at December 31, 2018	$	593		$	794		$	(41	)	$	—		$	1,346
Reclassification to realized at settlement of contracts	(47		)	7			26			1			(13		)
Value of contracts acquired	—			—			—			(6		)	(6		)
Net option premium purchases (issuances)	10			—			—			—			10
Changes in fair value excluding reclassification to realized	53			(57		)	1			—			(3		)
Fair value of contracts outstanding at March 31, 2019	609			744			(14		)	(5		)	1,334
Net margin cash collateral paid (received)													(61		)
Total mark-to-market energy contract net assets (liabilities) at March 31, 2019	$	609		$	744		$	(14	)	$	(5	)	$	1,273

NEE uses a value-at-risk (VaR) model to measure commodity price market risk in its trading and mark-to-market portfolios. The VaR is the estimated ~~nominal~~ loss of market value based on a one-day holding period at a 95% confidence level using historical simulation methodology. The VaR figures are as follows:

Trading
Non-Qualifying Hedges
and Hedges in FPL Cost
Recovery Clauses^(a)
Total
FPL NEER NEE FPL NEER NEE FPL NEER NEE
(millions)
December 31, 2016 $ —
$ 4
$ 4
$ 46
$ 62
$ 23
$ 46
$ 57
$ 23
September 30, 2017 $ —
$ 1
$ 1
$ 5
$ 22
$ 21
$ 5
$ 22
$ 21
Average for the nine months ended September 30, 2017 $ —
$ 3
$ 3
$ 26
$ 30
$ 19
$ 26
$ 29
$ 18



	Trading						Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses^(a)						Total
	FPL		NEER		NEE		FPL		NEER		NEE		FPL		NEER		NEE
									(millions)
December 31, 2019	$	—	$	2	$	2	$	—	$	25	$	25	$	—	$	26	$	26
March 31, 2020	$	—	$	4	$	4	$	1	$	64	$	64	$	1	$	64	$	64
Average for the three months ended March 31, 2020	$	—	$	2	$	2	$	1	$	39	$	39	$	1	$	40	$	40

The following are estimates of the fair value of NEE's and FPL's financial instruments that are exposed to interest rate risk:

September 30, 2017 December 31, 2016

Carrying
Amount

Estimated
Fair Value

Carrying
Amount

Estimated
Fair Value

(millions)
NEE:
Fixed income securities:
Special use funds $ 1,893
$ 1,893
^(a)
$ 1,809
$ 1,809
^(a)
Other investments:
Debt securities $ 139
$ 139
^(a)
$ 123
$ 123
^(a)
Primarily notes receivable^(b)
$ 512
$ 695
^(c)
$ 526
$ 668
^(c)
Long-term debt, including current maturities^(b)
$ 32,625
$ 34,846
^(d)
$ 30,418
$ 31,623
^(d)
Interest rate contracts - net unrealized gains (losses) $ (223 ) $ (223 )
^(e)
$ 4
$ 4
^(e)
FPL:
Fixed income securities - special use funds $ 1,415
$ 1,415
^(a)
$ 1,363
$ 1,363
^(a)
Long-term debt, including current maturities $ 10,518
$ 11,941
^(d)
$ 10,072
$ 11,211
^(d)



	March 31, 2020						December 31, 2019
	Carrying Amount			Estimated Fair Value^(a)			Carrying Amount			Estimated Fair Value^(a)
	(millions)
NEE:
Fixed income securities:
Special use funds	$	2,016		$	2,016		$	2,099		$	2,099
Other investments, primarily debt securities	$	167		$	167		$	181		$	181
Long-term debt, including current portion	$	43,605		$	45,791		$	39,667		$	42,928
Interest rate contracts - net unrealized losses	$	(1,478	)	$	(1,478	)	$	(716	)	$	(716	)
FPL:
Fixed income securities - special use funds	$	1,511		$	1,511		$	1,574		$	1,574
Long-term debt, including current portion	$	15,422		$	17,721		$	14,161		$	16,448

The special use funds of NEE and FPL consist of restricted funds set aside to cover the cost of storm damage for FPL and for the decommissioning of NEE's and FPL's nuclear power plants. A portion of these funds is invested in fixed income debt securities primarily carried at estimated fair value. At FPL, changes in fair value, including any ~~OTTI~~credit losses, result in a corresponding adjustment to the related regulatory asset or liability accounts based on current regulatory treatment. The changes in fair value of NEE's non-rate regulated operations result in a corresponding adjustment to OCI, except for ~~impairments deemed~~credit losses and unrealized losses on available for sale securities intended or required to be ~~other than temporary, including any credit losses,~~sold prior to recovery of the amortized cost basis, which are reported in current period earnings. Because the funds set aside by FPL for storm damage could be needed at any time, the related investments are generally more liquid and, therefore, are less sensitive to changes in interest rates. The nuclear decommissioning funds, in contrast, are generally invested in longer-term ~~securities, as decommissioning activities are not scheduled to begin until at least 2030 (2032 at FPL).~~securities.

~~As of September 30, 2017,~~At March 31, 2020, NEE had interest rate contracts with a net notional amount of approximately ~~$13.6~~$8.3 billion related to ~~outstanding~~expected future and ~~expected future~~outstanding debt issuances and ~~borrowings,~~borrowings. The net notional amount consists of ~~which~~ approximately ~~$11.2~~$9.0 billion ~~manages~~to manage exposure to the variability of cash flows associated with ~~outstanding~~expected future and ~~expected future~~outstanding debt issuances at NEECH and NEER. ~~The remaining $2.4 billion of notional amount of interest rate contracts~~This is offset by approximately $700 million that effectively convert fixed-rate debt to variable-rate debt instruments at NEECH. See Note 2.4.

Based upon a hypothetical 10% decrease in interest rates, which is a reasonable near-term market change, the ~~net~~ fair value of NEE's net liabilities would increase by approximately ~~$1,552~~$1,584 million ($~~437~~628 million for FPL) at ~~September 30, 2017~~.March 31, 2020.

Trade receivables and other financial instruments are predominately with energy, utility and financial services related companies, as well as municipalities, cooperatives and other trading companies in the ~~U.S.~~

Master netting agreements are used to offset cash and noncash gains and losses arising from derivative instruments with the same counterparty. NEE’s policy is to have master netting agreements in place with significant counterparties.

~~Master netting agreements are used to offset cash and non-cash gains and losses arising from derivative instruments with the same counterparty.~~ ~~NEE’s policy is to have master netting agreements in place with significant counterparties.~~

Based on NEE’s policies and risk exposures related to credit, NEE and FPL do not anticipate a material adverse effect on their financial statements as a result of counterparty nonperformance. ~~As ofSeptember 30, 2017~~At March 31, 2020, approximately ~~96%~~89% of NEE’s and 100% of FPL’s energy marketing and trading counterparty credit risk exposure is associated with companies that have investment grade credit ratings.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

See Management's Discussion - Energy Marketing and Trading and Market Risk Sensitivity.

PART II - OTHER INFORMATION

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in the ~~2016~~2019 Form ~~10-K.~~ 10-K except as follows:

The coronavirus pandemic may have a material adverse impact on NEE’s and FPL's business, financial condition, liquidity and results of operations.

NEE and FPL are closely monitoring the global outbreak of COVID-19. At this time, NEE and FPL are unable to determine the ultimate severity or duration of the outbreak or its effects on, among other things, the global, national or local economy, the capital and credit markets, or NEE’s and FPL’s workforce, customers and suppliers. As a result, NEE and FPL cannot predict whether COVID-19 will have a material adverse impact on their businesses, financial condition, liquidity and results of operations.

The factors discussed in Part I, Item 1A. Risk Factors in the ~~2016~~2019 Form 10-K, as well as other information set forth in this report, which could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects should be carefully considered. The risks described above and in the ~~2016~~2019 Form 10-K are not the only risks facing NEE and FPL. Additional risks and uncertainties not currently known to NEE or FPL, or that are currently deemed to be immaterial, also may materially adversely affect NEE's or FPL's business, financial condition, results of operations and prospects.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


(a)	Information regarding purchases made by NEE of its common stock during the three months ended ~~September 30, 2017~~March 31, 2020 is as follows:

Period
Total Number
of Shares Purchased^(a)

Average Price Paid
Per Share

Total Number of Shares
Purchased as Part of a
Publicly Announced
Program

Maximum Number of
Shares that May Yet be
Purchased Under the
Program^(b)
7/1/17 - 7/31/17 —
—
— 45,000,000
8/1/17 - 8/31/17 4,703
$ 149.05
— 45,000,000
9/1/17 - 9/30/17 457
$ 149.79
— 45,000,000
Total 5,160
$ 149.12
—



Period	Total Number of Shares Purchased^(a)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under the Program^(b)
1/1/20 - 1/31/20	—	—		—	45,000,000
2/1/20 - 2/29/20	59,481	$	278.52	—	45,000,000
3/1/20 - 3/31/20	509	$	204.07	—	45,000,000
Total	59,990	$	277.89	—

————————————

(a)

Includes: (1) in ~~August 2017,~~February 2020, shares of common stock withheld from employees to pay certain withholding taxes upon the vesting of stock awards granted to such employees under the NextEra Energy, Inc. Amended and Restated 2011 Long Term Incentive Plan; and (2) in ~~September 2017,~~March 2020, shares of common stock purchased as a reinvestment of dividends by the trustee of a grantor trust in connection with NEE's obligation under a February 2006 grant under the NextEra Energy, Inc. Amended and Restated Long-Term Incentive Plan to an executive officer of deferred retirement share awards.


(b)	In May 2017, NEE's Board of Directors authorized ~~common stock~~ repurchases of up to 45 million shares of common stock over an unspecified period.

Item 6. Exhibits



Exhibit Number	Description	NEE	FPL
*4(a)	~~Indenture,~~Purchase Contract Agreement, dated as of ~~September 25, 2017,~~February 1, 2020, between NextEra Energy, ~~Operating Partners, LP~~Inc. and The Bank of New York Mellon, as ~~trustee (filed as Exhibit 4.1 to Form 8-K dated September 25, 2017, File No. 1-8841)~~Purchase Contract Agent	x
*4(b)	~~Guarantee~~Pledge Agreement, dated as of ~~September 25, 2017,~~February 1, 2020, between NextEra Energy, ~~Partners, LP~~Inc., Deutsche Bank Trust Company Americas, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York Mellon, as ~~guarantee trustee (filed as Exhibit 4.2 to Form 8-K dated September 25, 2017, File No. 1-8841)~~Purchase Contract Agent	x
*4(c)	~~Guarantee Agreement dated as~~Officer's Certificate of ~~September 25, 2017, between~~ NextEra Energy ~~US Partners~~Capital Holdings, ~~LLC and The Bank of New York Mellon, as guarantee trustee (filed as Exhibit 4.3 to Form 8-K~~Inc., dated ~~September 25, 2017, File No. 1-8841)~~February 21, 2020, creating the Series K Debentures due March 1, 2025	x
*4(d)	Officer's Certificate of Florida Power & Light Company, dated March 13, 2020, creating the Floating Rate Notes, Series due March 13, 2070 (filed as Exhibit 4 to Form 8-K dated March 13, 2020, File No. 2-27612)	x	x
4(e)	One Hundred Thirty-First Supplemental Indenture dated as of March 1, 2020 between Florida Power & Light Company and Deutsche Bank Trust Company Americas, Trustee	x	x
*4(f)	Officer's Certificate of NextEra Energy ~~Operating Partners, LP,~~Capital Holdings, Inc. dated ~~September 25, 2017,~~April 6, 2020, creating the ~~4.25% Senior Notes~~2.75% Debentures, Series due ~~2024 and the 4.50% Senior Notes due 2027~~May 1, 2025 (filed as Exhibit ~~4.4~~4 to Form 8-K dated ~~September 25, 2017,~~April 6, 2020, File No. 1-8841)	x
*4(e)22	Officer's Certificate of NextEra Energy Capital Holdings, Inc., dated September 29, 2017, creating the Series L Junior Subordinated Debentures due September 29, 2057 (filed as Exhibit 4(c) to Form 8-K dated September 29, 2017, File No. 1-8841)	x
~~12(a)~~	~~Computation of Ratios~~Guaranteed Securities	x
~~12(b)~~	~~Computation of Ratios~~		x
31(a)	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of NextEra Energy, Inc.	x
31(b)	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of NextEra Energy, Inc.	x
31(c)	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Florida Power & Light Company		x
31(d)	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Florida Power & Light Company		x
32(a)	Section 1350 Certification of NextEra Energy, Inc.	x
32(b)	Section 1350 Certification of Florida Power & Light Company		x
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	x	x
101.SCH	Inline XBRL Schema Document	x	x
101.PRE	Inline XBRL Presentation Linkbase Document	x	x
101.CAL	Inline XBRL Calculation Linkbase Document	x	x
101.LAB	Inline XBRL Label Linkbase Document	x	x
101.DEF	Inline XBRL Definition Linkbase Document	x	x
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	x	x

_________________________


*	Incorporated herein by reference

NEE and FPL agree to furnish to the SEC upon request any instrument with respect to long-term debt that NEE and FPL have not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

Date: ~~October 26, 2017~~April 23, 2020

NEXTERA ENERGY, INC.

(Registrant)

~~TERRELL KIRK CREWS, II~~JAMES M. MAY

~~Terrell Kirk Crews, II~~James M. May

Vice President, Controller and Chief Accounting Officer

~~of NextEra Energy, Inc.~~

(Principal Accounting ~~Officer of NextEra Energy, Inc.)~~Officer)

FLORIDA POWER & LIGHT COMPANY

(Registrant)

~~KIMBERLY OUSDAHL~~KEITH FERGUSON

~~Kimberly Ousdahl~~Keith Ferguson

~~Vice President and Chief Accounting Officer~~

~~of Florida Power & Light Company~~Controller

(Principal Accounting ~~Officer of~~

~~Florida Power & Light Company)~~Officer)

5549



		Page No.

Definitions		2
Forward-Looking Statements		4

	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3935
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5246
Item 4.	Controls and Procedures	5246

	PART II - OTHER INFORMATION

Item 1A.	Risk Factors	5347
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5347
Item 6.	Exhibits	5448

Signatures		5549



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
OPERATING REVENUES	$	4,808		$	4,805		$	13,185		$	12,457
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange	1,176			1,217			3,093			3,105
Other operations and maintenance	769			833			2,400			2,474
Merger	2			123			17			129
Depreciation and amortization	1,070			983			2,576			2,262
Gains on disposal of a business/assets - net	(5		)	(4		)	(1,106		)	(257		)
Taxes other than income taxes and other - net	397			374			1,115			1,062
Total operating expenses - net	3,409			3,526			8,095			8,775
OPERATING INCOME	1,399			1,279			5,090			3,682
OTHER INCOME (DEDUCTIONS)
Interest expense	(381		)	(369		)	(1,171		)	(1,480		)
Benefits associated with differential membership interests - net	67			59			311			220
Equity in earnings of equity method investees	56			70			153			147
Allowance for equity funds used during construction	21			20			68			62
Interest income	20			23			59			61
Gains on disposal of investments and other property - net	15			9			64			36
Revaluation of contingent consideration	—			101			—			118
Other - net	23			15			7			21
Total other deductions - net	(179		)	(72		)	(509		)	(815		)
INCOME BEFORE INCOME TAXES	1,220			1,207			4,581			2,867
INCOME TAXES	364			418			1,329			879
NET INCOME	856			789			3,252			1,988
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	9			36			29			42
NET INCOME ATTRIBUTABLE TO NEE	$	847		$	753		$	3,223		$	1,946
Earnings per share attributable to NEE:
Basic	$	1.80		$	1.63		$	6.88		$	4.21
Assuming dilution	$	1.79		$	1.62		$	6.83		$	4.19
Dividends per share of common stock	$	0.9825		$	0.87		$	2.9475		$	2.61
Weighted-average number of common shares outstanding:
Basic	469.4			463.3			468.3			461.7
Assuming dilution	473.5			466.0			472.0			464.7



	September 30, 2017			December 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property	$	84,045		$	80,150
Nuclear fuel	2,011			2,131
Construction work in progress	6,492			4,732
Accumulated depreciation and amortization	(21,460		)	(20,101		)
Total property, plant and equipment - net ($14,186 and $14,632 related to VIEs, respectively)	71,088			66,912
CURRENT ASSETS
Cash and cash equivalents	1,381			1,292
Customer receivables, net of allowances of $9 and $5, respectively	2,147			1,784
Other receivables	603			655
Materials, supplies and fossil fuel inventory	1,352			1,289
Regulatory assets	551			524
Derivatives	442			885
Assets held for sale	—			452
Other	551			528
Total current assets	7,027			7,409
OTHER ASSETS
Special use funds	5,894			5,434
Other investments ($474 and $479 related to a VIE, respectively)	2,983			2,482
Prepaid benefit costs	1,217			1,177
Regulatory assets ($53 and $107 related to a VIE, respectively)	3,290			1,894
Derivatives	1,546			1,350
Other	3,736			3,335
Total other assets	18,666			15,672
TOTAL ASSETS	$	96,781		$	89,993
CAPITALIZATION
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 470 and 468, respectively)	$	5		$	5
Additional paid-in capital	9,046			8,948
Retained earnings	17,299			15,458
Accumulated other comprehensive income (loss)	48			(70		)
Total common shareholders' equity	26,398			24,341
Noncontrolling interests	923			990
Total equity	27,321			25,331
Long-term debt ($5,909 and $5,080 related to VIEs, respectively)	30,345			27,818
Total capitalization	57,666			53,149
CURRENT LIABILITIES
Commercial paper	2,074			268
Other short-term debt	255			150
Current maturities of long-term debt	2,285			2,604
Accounts payable	2,256			3,447
Customer deposits	449			470
Accrued interest and taxes	873			480
Derivatives	257			404
Accrued construction-related expenditures	921			1,120
Regulatory liabilities	157			299
Liabilities associated with assets held for sale	—			451
Other	2,077			1,226
Total current liabilities	11,604			10,919
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	2,882			2,736
Deferred income taxes	12,563			11,101
Regulatory liabilities	4,895			4,906
Derivatives	514			477
Deferral related to differential membership interests - VIEs	4,542			4,656
Other	2,115			2,049
Total other liabilities and deferred credits	27,511			25,925
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	96,781		$	89,993



	Common Stock			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
	Shares	Aggregate Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
Balances, December 31, 2016	468	$	5	$	8,948		$	(70	)	$	15,458		$	24,341		$	990		$	25,331
Net income	—	—		—			—			3,223			3,223			29
Issuances of common stock, net of issuance cost of less than $1	2	—		24			—			—			24			—
Share-based payment activity	—	—		77			—			—			77			—
Dividends on common stock	—	—		—			—			(1,382		)	(1,382		)	—
Other comprehensive income	—	—		—			118			—			118			11
Sale of NEER assets to NEP	—	—		—			—			—			—			(17		)
Distributions to noncontrolling interests	—	—		—			—			—			—			(64		)
Other	—	—		(3		)	—			—			(3		)	(26		)
Balances, September 30, 2017	470	$	5	$	9,046		$	48		$	17,299		$	26,398		$	923		$	27,321



	Nine Months Ended September 30,
	2017						2016
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	578		$	1		$	538		$	—
Realized and unrealized gains (losses):
Included in earnings^(a)	518			—			373			—
Included in other comprehensive income^(b)	(16		)	—			(3		)	—
Included in regulatory assets and liabilities	(2		)	(2		)	—			—
Purchases	83			—			203			—
Settlements	(234		)	—			(300		)	—
Issuances	(162		)	—			(159		)	—
Transfers in^(c)	14			—			4			—
Transfers out^(c)	1			—			6			—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	780		$	(1	)	$	662		$	—
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date^(d)	$	461		$	—		$	231		$	—


(a)	Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring ~~basis.~~


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


(c)	Excludes debt totaling ~~$373~~approximately $463 million ~~reflected in liabilities associated with assets~~classified as held for sale, which is included in current other liabilities on NEE's condensed consolidated balance sheet at December 31, 2019, for which the carrying amount ~~approximates~~approximated fair value. See Note 911 - ~~Assets~~Disposal of a Business.


(d)	At March 31, 2020 and ~~Liabilities Associated with Assets Held~~December 31, 2019, substantially all is Level 2 for ~~Sale.~~NEE and all is Level 2 for FPL.


(a)	Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016~~2019 were not material to NEE or FPL.


(a)	The NEP Series A convertible preferred units and the NEP senior unsecured convertible notes were both antidilutive for the three months ended March 31, 2020 and 2019.


(b)	Calculated 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.


(a)	Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 24 - Income Statement Impact of Derivative Instruments.


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


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


(d)	Reclassified to gains on disposal of businesses/assets - net and interest expense in NEE's condensed consolidated statements of income. See Note 24 - Income Statement Impact of Derivative Instruments.


~~(b)~~	~~Reclassified to gains on disposal~~ See Note 11 - Disposal of ~~investments and other property - net in NEE's condensed consolidated statements of income.~~a Business.


~~(a)~~	~~Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 - Income Statement Impact of Derivative Instruments.~~


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


(a)	Variable rate is based on an underlying index ~~plus~~less a specified margin. ~~Interest rate swap agreements have been entered into with respect~~Permit individual noteholders to ~~certain of these issuances and a foreign currency swap has been entered into with respect~~require repayment at specified dates prior to ~~the Japanese yen denominated term loan. See Note 2.~~


~~(b)~~	A holder may convert all or a portion of its notes into NEP common units and cash in lieu of any fractional common unit at the conversion rate. At September 30, 2017, the conversion rate, subject to certain adjustments, is 18.9170 NEP common units per $1,000 principal amount of the convertible notes.maturity.


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


(d)	Consists of capital expenditures for new wind projects, repowering of existing wind projects and related transmission totaling approximately ~~4,075~~4,215 MW.


~~(e)~~(f)	~~Includes equity contributions associated with an equity investment in a joint venture that is constructing a~~Construction of two natural gas ~~pipeline. The~~pipelines are subject to certain conditions, including applicable regulatory approvals. In addition, completion of another natural gas pipeline is ~~pending FERC approval~~subject to ~~proceed with construction.~~final permitting.


(c)	Includes approximately $110 million of commitments to invest in technology investments through 2029.


(d)	Includes an approximately ~~$90~~$230 million, ~~commitment to invest in clean power~~$20 million, $20 million, $20 million, $10 million and ~~technology businesses through 2021.~~


~~(e)~~	~~Excludes approximately $170~~$15 million for the remainder of ~~2017~~2020 through 2024 and thereafter, respectively, of joint obligations of NEECH and ~~NEER which are included in the NEER amounts above.~~NEER.


(a)	Interest expense allocated from NEECH is based on a deemed capital structure of 70% ~~debt. For this purpose, the deferred credit associated with~~debt and differential membership interests sold by ~~NEER subsidiaries is included with debt.~~NextEra Energy Resources' subsidiaries. Residual NEECH corporate interest expense is included in Corporate and Other.


(b)	See Note 46 for a discussion of NEER's tax benefits related to PTCs.


~~(a)~~	~~Represents primarily FPL and consolidating adjustments.~~