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What changed in NextEra Energy's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NextEra Energy's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+394 added−360 removedSource: 10-K (2026-02-13) vs 10-K (2025-02-14)

Top changes in NextEra Energy's 2025 10-K

394 paragraphs added · 360 removed · 313 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

105 edited+44 added−23 removed50 unchanged
Biggest changeIn 2024 and in January 2025, FPL continued to add new solar generation with cost recovery through base rates, through a Solar Base Rate Adjustment (SoBRA) and through SolarTogether ® (a voluntary community solar program that gives FPL electric customers an opportunity to participate directly in the expansion of solar energy where participants pay a fixed monthly subscription charge and receive credits on their related monthly customer bill).
Biggest changeTreasury rate. • Subject to certain conditions, the right to amortize up to $1.45 billion (depreciation reserve), provided that in any 12-month period of the 2021 rate agreement, FPL was required to amortize at least enough of the depreciation reserve amount to maintain its minimum authorized annual regulatory ROE and also could not amortize any depreciation reserve amount that would result in an earned regulatory ROE in excess of its maximum authorized regulatory ROE. • Expansion of SolarTogether ® (a voluntary community solar program that gives FPL electric customers an opportunity to participate directly in the expansion of solar energy where participants pay a fixed monthly subscription charge and receive credits on their related monthly customer bill) by constructing an additional 1,788 MW of solar generation from 2022 through 2025, such that the total capacity of SolarTogether ® is 3,278 MW. • An interim storm cost recovery mechanism for storm restoration costs.
NRC regulations require FPL to submit a plan for decontamination and decommissioning five years before the projected end of plant operation. If the license renewals are approved by the NRC, FPL's plans provide for St. Lucie Unit No. 1 to be shut down in 2056 with decommissioning activities to be integrated with the dismantlement of St.
NRC regulations require FPL to submit a plan for decontamination and decommissioning five years before the projected end of plant operation. If the license renewals are approved by the NRC, FPL's plans provide for St. Lucie Unit 1 to be shut down in 2056 with decommissioning activities to be integrated with the dismantlement of St.
Because any customer may elect to provide their own electric services, FPL effectively must compete for an individual customer's business. As a practical matter, few customers provide their own service at the present time since FPL's cost of service is lower than the cost of self-generation for a significant majority of customers.
Because any customer may elect to provide its own electric services, FPL effectively must compete for an individual customer's business. As a practical matter, few customers provide their own service at the present time since FPL's cost of service is lower than the cost of self-generation for a significant majority of customers.
With the exception of facilities located in ERCOT, the FERC has jurisdiction over various aspects of NEER's business in the continental U.S., including the oversight and investigation of competitive wholesale energy markets, regulation of the transmission and sale of natural gas, and oversight of environmental matters related to natural gas projects and major electricity policy initiatives.
With the exception of facilities located in ERCOT, the FERC has jurisdiction over various aspects of NEER's business in the continental U.S., including the oversight and investigation of competitive wholesale energy markets, regulation of the interstate transmission of electricity, regulation of the transmission and sale of natural gas, and oversight of environmental matters related to natural gas projects and major electricity policy initiatives.
NEE reports NextEra Energy Resources and NEET, a rate-regulated transmission business, on a combined basis for segment reporting purposes, and the combined segment is referred to as NEER.
NEE reports NextEra Energy Resources and NEET, a rate-regulated electric transmission business, on a combined basis for segment reporting purposes, and the combined segment is referred to as NEER.
In addition, FPL owned, or had undivided interests in, and operated four nuclear units with net generating capacity totaling 3,502 MW (see Nuclear Operations below) and had a joint ownership interest in a coal unit located in Georgia which is operated by the joint owner with a net generating capacity of 215 MW (see Note 7 – Jointly-Owned Electric Plants).
In addition, FPL owned, or had undivided interests in, and operated four nuclear units with net generating capacity totaling 3,502 MW (see Nuclear Operations below) an d had a joint ownership interest in a coal unit located in Georgia, which is operated by the joint owner, with a net generating capacity of 215 MW (see Note 7 – Jointly-Owned Electric Plants).
FPL recovers costs from customers through the following clauses: • Fuel – primarily fuel costs, the most significant of the cost recovery clauses in terms of operating revenues (see Note 1 – Rate Regulation); • Storm Protection Plan – costs associated with an FPSC-approved transmission and distribution storm protection plan, substantially all of which includes costs for hardening of overhead transmission and distribution lines, undergrounding of certain distribution lines and vegetation management; • Capacity – primarily certain costs associated with the acquisition and retirement of several electric generation facilities (see Note 1 – Rate Regulation) and capacity payments related to PPAs; • Energy Conservatio n – costs associated with implementing energy conservation programs; and • Environmental – certain costs of complying with federal, state and local environmental regulations enacted after April 1993 and costs associated with certain of FPL's solar facilities placed in service prior to 2016.
FPL recovers costs from customers through the following clauses: • Fuel – primarily fuel costs, the most significant of the cost recovery clauses in terms of operating revenues (see Note 1 – Rate Regulation); • Storm Protection Plan – costs associated with an FPSC-approved transmission and distribution storm protection plan, substantially all of which are costs for hardening overhead transmission and distribution lines, undergrounding of certain distribution lines and vegetation management; • Capacity – primarily certain costs associated with the acquisition and retirement of an electric generation facility (see Note 1 – Rate Regulation) and capacity payments related to PPAs; • Energy Conservatio n – costs associated with implementing energy conservation programs; and • Environmental – certain costs of complying with federal, state and local environmental regulations enacted after April 1993 and costs associated with certain of FPL's solar facilities placed in service prior to 2016.
At December 31, 2024 , essentially all of NEER's generation facilities located in the U.S. have received exempt wholesale generator status as defined under the Public Utility Holding Company Act of 2005. Exempt wholesale generators own or operate a facility exclusively to sell electricity to wholesale customers. They are barred from selling electricity directly to retail customers.
As of December 31, 2025 , essentially all of NEER's generation facilities located in the U.S. have received exempt wholesale generator status as defined under the Public Utility Holding Company Act of 2005. Exempt wholesale generators own or operate a facility exclusively to sell electricity to wholesale customers. They are barred from selling electricity directly to retail customers.
At the time base rates are established, the allowed rate of return on rate base approximates the FPSC's determination of the utility's estimated weighted-average cost of capital, which includes its costs for outstanding debt and an allowed return on common equity. The FPSC monitors the utility's actual regulatory ROE through a surveillance report that is filed monthly with the FPSC.
When base rates are established, the allowed rate of return on rate base approximates the FPSC's determination of the utility's estimated weighted-average cost of capital, which includes its costs for outstanding debt and an allowed return on common equity. The FPSC monitors the utility's actual regulatory ROE through a surveillance report that is filed monthly with the FPSC.
FPL REGULATION FPL's operations are subject to regulation by a number of federal, state and other organizations, including, but not limited to, the following: • the FPSC, which has jurisdiction over retail rates, service area, issuances of securities, and planning, siting and construction of facilities, among other things; • the FERC, which oversees the acquisition and disposition of electric generation, transmission and other facilities, transmission of electricity and natural gas in interstate commerce, proposals to build and operate interstate natural gas pipelines and storage facilities, and wholesale purchases and sales of electric energy, among other things; • the NERC, which, through its regional entities, establishes and enforces mandatory reliability standards, subject to approval by the FERC, to ensure the reliability of the U.S. electric transmission and generation system and to prevent major system blackouts; • the NRC, which has jurisdiction over the operation of nuclear power plants through the issuance of operating licenses, rules, regulations and orders; and • the EPA, which has the responsibility to maintain and enforce national standards under a variety of environmental laws, in some cases delegating authority to state agencies.
FPL REGULATION FPL's operations are subject to regulation by a number of federal, state and other organizations, including, but not limited to, the following: • the FPSC, which has jurisdiction over retail rates, service areas, issuances of securities, and planning, siting and construction of facilities, among other things; • the FERC, which oversees the acquisition and disposition of electric generation, transmission and other facilities, transmission of electricity and natural gas in interstate commerce, proposals to build and operate interstate natural gas pipelines and storage facilities, and wholesale purchases and sales of electric energy, among other things; • the NERC, which, through its regional entities, establishes and enforces mandatory reliability standards, subject to approval by the FERC, to ensure the reliability of the U.S. electric transmission and generation system and to prevent major system blackouts; 8 Table of Content s • the NRC, which has jurisdiction over the operation of nuclear power plants through the issuance of operating licenses, rules, regulations and orders; and • the EPA, which has the responsibility to maintain and enforce national standards under a variety of environmental laws, and in some cases delegates authority to state agencies.
The following map shows FPL's service areas and plant locations as of February 14, 2025, which cover most of the east and lower west coasts of Florida and are in ten counties throughout northwest Florida (see FPL Sources of Generation below). 5 Table of Content s CUSTOMERS AND REVENUE FPL's primary source of operating revenues is from its retail customer base; it also serves a limited number of wholesale customers within Florida.
The following map shows FPL's service areas and plant locations as of February 13, 2026, which cover most of the east and lower west coasts of Florida and are in ten counties throughout northwest Florida (see FPL Sources of Generation below). 5 Table of Content s CUSTOMERS AND REVENUE FPL's primary source of operating revenues is from its retail customer base; it also serves a limited number of wholesale customers within Florida.
FPL’s strategic focus is centered on investing in generation, transmission and distribution facilities to deliver on its value proposition of keeping customer bills as low as possible and delivering high reliability, outstanding customer service and energy from diverse generation sources for the benefit of its more than six million customer accounts.
FPL’s strategic focus is centered on investing in generation, storage, transmission and distribution facilities to deliver on its value proposition of keeping customer bills low and delivering high reliability, outstanding customer service and energy from diverse generation sources for the benefit of its more than six million customer accounts.
At December 31, 2024 , FPL also provided service to customers in 10 other municipalities and to 27 unincorporated areas within its service area without franchise agreements pursuant to the general obligation to serve as a public utility. FPL relies upon Florida law for access to public rights-of-way.
As of December 31, 2025 , FPL also provided service to customers in 10 other municipalities and to 27 unincorporated areas within its service area without franchise agreements, pursuant to the general obligation to serve as a public utility. FPL relies upon Florida law for access to public rights-of-way.
Scheduled nuclear refueling outages require the unit to be removed from service for variable lengths of time. 14 Table of Content s Facility Location Net Generating Capacity (MW) Portfolio Category Beginning of Next Scheduled Refueling Outage (a) Operating License Expiration Date Seabrook New Hampshire 1,102 (b) Merchant (c) April 2026 2050 Point Beach Unit No. 1 Wisconsin 595 Contracted (d) March 2025 2030 (e) Point Beach Unit No. 2 Wisconsin 595 Contracted (d) March 2026 2033 (e) ______________________ (a) NEER has several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel for all nuclear units with expiration dates through 2033 (see Note 15 – Contracts).
Scheduled nuclear refueling outages require the unit to be removed from service for variable lengths of time. 14 Table of Content s Facility Location Net Generating Capacity (MW) Portfolio Category Beginning of Next Scheduled Refueling Outage (a) Operating License Expiration Date Seabrook New Hampshire 1,102 (b) Merchant (c) April 2026 2050 Point Beach Unit 1 Wisconsin 595 Contracted (d) October 2026 2050 Point Beach Unit 2 Wisconsin 595 Contracted (d) March 2026 2053 ______________________ (a) NEER has several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel for all nuclear units with expiration dates through 2033 (see Note 15 – Contracts).
Lucie Unit No. 2 commencing in 2063. FPL's plans provide for the dismantlement of Turkey Point Units Nos. 3 and 4 with decommissioning activities commencing in 2052 and 2053, respectively.
Lucie Unit 2 commencing in 2063. FPL's plans provide for the dismantlement of Turkey Point Units 3 and 4 with decommissioning activities commencing in 2052 and 2053, respectively.
Changing technology (particularly increasing efficiency of solar power generation), tax incentives, economic conditions, regulatory changes, increasing cost-competitiveness of rooftop solar and battery storage and other factors could alter the favorable relative cost position that FPL currently enjoys; however, FPL seeks as a matter of strategy to ensure that it delivers superior value, in the form of customer bills as low as possible, high reliability, outstanding customer service and energy from diverse generation sources.
Changing technology (particularly the increasing efficiency of solar power generation), tax incentives, economic conditions, regulatory changes and other factors could alter the favorable relative cost position that FPL currently enjoys; however, FPL seeks as a matter of strategy to ensure that it delivers superior value in the form of low customer bills, high reliability, outstanding customer service and energy from diverse generation sources.
The collective bargaining agreements have approximately three-to-four-year terms and expire between September 2025 and October 2028. 19 Table of Content s NEE ENVIRONMENTAL MATTERS NEE and its subsidiaries, including FPL, are subject to environmental laws and regulations, including extensive federal, state and local environmental statutes, rules and regulations relating to, among others, air quality, water quality and usage, waste management, wildlife protection and historical resources, for the siting, construction and ongoing operations of their facilities.
The collective bargaining agreements have approximately three-to-four-year terms and expire between September 2026 and December 2028. 20 Table of Content s NEE ENVIRONMENTAL MATTERS NEE and its subsidiaries, including FPL, are subject to environmental laws and regulations, including extensive federal, state and local environmental statutes, rules and regulations relating to, among others, air quality, water quality and usage, waste management, wildlife protection and historical resources, for the siting, construction and ongoing operations of their facilities.
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-K. INFORMATION ABOUT OUR EXECUTIVE OFFICERS (a) Name Age Position Effective Date Brian W.
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-K. 21 Table of Content s INFORMATION ABOUT OUR EXECUTIVE OFFICERS (a) Name Age Position Effective Date Brian W.
FPL also develops and constructs battery storage projects, which, when combined with its solar projects, serve to enhance its ability to meet customer needs for a nearly firm generation source. At December 31, 2024 , FPL had 469 MW of battery storage capacity that delivers energy to the transmission system.
FPL also develops and constructs battery storage projects, which, when combined with its solar projects, serve to enhance its ability to meet customer needs for a nearly firm generation source. As of December 31, 2025 , FPL had 991 MW of battery storage capacity that delivers energy to the transmission system.
Base Rates Effective January 2022 through December 2025 – In December 2021, the FPSC issued a final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding (2021 rate agreement).
Base Rates Effective January 2026 through December 2029 – In January 2026, the FPSC issued a final order approving a stipulation and settlement agreement between FPL and several intervenors in FPL's base rate proceeding (2025 rate agreement).
Sieving 52 Executive Vice President, Chief Legal, Environmental and Federal Regulatory Affairs Officer of NEE Executive Vice President of FPL May 18, 2023 January 1, 2009 ______________________ (a) Information is as of February 14, 2025. Executive officers are elected annually by, and serve at the pleasure of, their respective boards of directors.
Sieving 53 Executive Vice President, Chief Legal, Environmental and Federal Regulatory Affairs Officer of NEE Executive Vice President of FPL May 18, 2023 January 1, 2009 ______________________ (a) Information is as of February 13, 2026. Executive officers are elected annually by, and serve at the pleasure of, their respective boards of directors.
Nuclear Facilities At December 31, 2024 , NextEra Energy Resources was the sole owner of the two Point Beach nuclear units shown in the table below and was the largest joint owner of the Seabrook nuclear facility shown in the table below.
Nuclear Facilities As of December 31, 2025 , NextEra Energy Resources was the sole owner of the two Point Beach nuclear units shown in the table below and was the largest joint owner of the Seabrook nuclear facility shown in the table below.
Information related to contracted generation assets at December 31, 2024 was as follows: • represented approximately 31,569 MW of total net generating capacity; and • weighted-average remaining contract term of the power sales agreements of approximately 14 years, primarily based on forecasted contributions to earnings.
Information related to contracted generation assets as of December 31, 2025 was as follows: • represented approximately 35,627 MW of total net generating capacity; and • weighted-average remaining contract term of the power sales agreements of approximately 14 years, primarily based on forecasted contributions to earnings.
NextEra Energy Resources owns, or has a partial ownership interest in, a portfolio of 29 biogas projects, one of which is an operating renewable natural gas facility and the others of which are primarily operating landfill gas-to-electric facilities.
NextEra Energy Resources owns, or has a partial ownership interest in, a portfolio of 29 biogas projects, eight of which are operating renewable natural gas facilities and the others are primarily operating landfill gas-to-electric facilities.
Lucie operating licenses for an additional 20 years. License renewals are pending. (b) Excludes 147 MW operated by FPL but owned by non-affiliates. (c) In September 2024, the license renewals for both Turkey Point units were approved. An intervenor's appeal of the decision dismissing its proposed contentions against the license renewals is pending before the NRC.
(b) Excludes 147 MW operated by FPL but owned by non-affiliates. (c) In September 2024, the license renewals for both Turkey Point units were approved. An intervenor's appeal of the decision dismissing its proposed contentions against the license renewals is pending before the NRC.
FPL expects to seek recovery through the environmental clause for compliance costs associated with any new environmental laws and regulations. FPL HUMAN CAPITAL FPL had approximately 9,300 employees at December 31, 2024, with approximately 31% of these employees represented by the International Brotherhood of Electrical Workers (IBEW).
FPL expects to seek recovery through the environmental clause for compliance costs associated with any new environmental laws and regulations. FPL HUMAN CAPITAL FPL had approximately 9,400 employees as of December 31, 2025, with approximately 30% of these employees represented by the International Brotherhood of Electrical Workers (IBEW).
Through NextEra Energy Resources' subsidiary, NextEra Energy Marketing, LLC, NEER: • manages risk associated with fluctuating commodity prices and optimizes the value of NEER's power generation and natural gas and oil production assets through the use of swaps, options, futures and forwards; • sells output from NEER's plants that is not sold under long-term contracts and procures fuel for use by NEER's generation fleet; • provides full energy and capacity requirements to customers; and • markets and trades energy-related commodity products, including power and fuel, as well as marketing and trading services to customers. 16 Table of Content s MARKETS AND COMPETITION Electricity markets in the U.S. and Canada are regional and diverse in character.
Through NextEra Energy Resources' subsidiary, NextEra Energy Marketing, LLC, NEER: • manages risk associated with fluctuating commodity prices and optimizes the value of NEER's power generation and natural gas and oil production assets through the use of swaps, options, futures and forwards; • sells output from NEER's plants that is not sold under long-term contracts and procures fuel for use by NEER's generation fleet; • provides full energy and capacity requirements to customers; and • markets and trades energy-related commodity products, including power and fuel, as well as marketing and trading services to customers.
See Markets and Competition below. 11 Table of Content s NEER's generation and battery storage projects, natural gas pipelines and transmission facilities (including noncontrolling or joint venture interests) at December 31, 2024 are as follows: 12 Table of Content s Clean Energy *Primarily natural gas Generation Assets NEER's portfolio of generation assets primarily consists of generation facilities with long-term power sales agreements for substantially all of their capacity and/or energy output.
NEER's generation and battery storage projects, natural gas pipelines and transmission assets (including noncontrolling or joint venture interests) as of December 31, 2025 are as follows: 12 Table of Content s Energy Assets Generation Assets NEER's portfolio of generation assets primarily consists of generation facilities with long-term power sales agreements for substantially all of their capacity and/or energy output.
For taxable years beginning after 2022, clean energy tax credits generated during the year can be transferred to an unrelated purchaser for cash, providing an additional path, along with sales of differential membership interests, for developers to monetize the value of clean energy tax credits. Other countries, including Canada, provide for incentives like feed-in-tariffs for renewable energy projects.
Clean energy tax credits can be transferred to an unrelated purchaser for cash, providing an additional path, along with sales of differential membership interests, for developers to monetize the value of clean energy tax credits. Other countries, including Canada, provide for incentives like feed-in-tariffs for renewable energy projects.
NEER has collective bargaining agreements with the IBEW, the Utility Workers Union of Amer ica and the Security Police and Fire Professionals of America, which collectively repr esent approximately 6% of NEER's employees.
NEER has collective bargaining agreements with the IBEW, the Utility Workers Union of America and the Security Police and Fire Professionals of America, which collectively represent approximately 6% of NEER's employees.
FPL seeks to maintain rates that are as low as possible for its customers, while continuing to deliver reliable service. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from cost savings initiatives.
FPL seeks to maintain low rates for its customers, while continuing to deliver reliable service. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from cost savings initiatives and the use of advanced technologies such as artificial intelligence.
At December 31, 2024 , FPL held 226 franchise agreements with various municipalities and counties in Florida with varying expiration dates through 2054. These franchise agreements cover the vast majority of FPL's retail customer base in Florida.
As of December 31, 2025 , FPL held 226 franchise agreements with various municipalities and counties in Florida with varying expiration dates through 2055. These franchise agreements cover the vast majority of FPL's retail customer base in Florida.
See FPL – FPL Regulation for additional discussion of FERC, NERC, NRC and EPA regulations. Rates of NEER's rate-regulated transmission businesses are set by regulatory bodies as noted in Clean Energy and Other Operations – Other Operations – Rate-Regulated Transmission.
See FPL – FPL Regulation for additional discussion of FERC, NERC, NRC and EPA regulations. Rates of NEER's rate-regulated electric transmission business are set by regulatory bodies as noted in Operations – Regulated Operations – Rate-Regulated Electric Transmission.
This or similar initiatives could limit NEER’s and FPL's ability to obtain or renew necessary approvals, rights-of-way, permits, leases or loans for wind or other energy projects. NEER HUMAN CAPITAL NEER had approximately 7,400 employees at December 31, 2024.
These or similar initiatives could limit NEER’s and FPL's ability to obtain or renew necessary approvals, rights-of-way, permits, leases or loans for wind or other energy projects. NEER HUMAN CAPITAL NEER had approximately 7,900 employees as of December 31, 2025.
The feed-in-tariffs promote renewable energy investments by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology. Other Operations Rate-Regulated Transmission – At December 31, 2024, certain entities within the NEER segment had ownership interests in rate-regulated transmission and related facilities.
The feed-in-tariffs promote renewable energy investments by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology. 16 Table of Content s Regulated Operations Rate-Regulated Electric Transmission – As of December 31, 2025, certain entities within the NEER segment had ownership interests in rate-regulated electric transmission and related facilities.
Merchant generation assets at December 31, 2024 represented approximately 1,842 MW of total net generating capacity, including 805 MW from nuclear generation and 1,032 MW from other peak generation facilities, and are primarily located in the Northeast region of the U.S.
Merchant generation assets as of December 31, 2025 represented approximately 1,878 MW of total net generating capacity, including 841 MW from nuclear generation and 1,032 MW from other peak generation facilities, and are primarily located in the Northeast region of the U.S.
NEER primarily competes on the basis of price, but believes the green attributes of NEER's generation assets, its track record of completing projects on schedule, its creditworthiness and its ability to offer and manage reliable customized risk solutions to wholesale customers are competitive advantages.
NEER primarily competes on the basis of price, but believes that its track record of completing projects on schedule, creditworthiness, operating scale and ability to offer and manage reliable customized risk solutions to wholesale customers are competitive advantages.
FPL owned and operated 44 units with generating capacity of 24,297 MW that primarily use natural gas and 96 solar generation facilities with generating capacity totaling 7,038 MW.
FPL owned and operated 44 units with generating capacity of 24,314 MW that primarily use natural gas and 108 solar generation facilities with generating capacity totaling 7,932 MW.
Generally, in addition to the natural constraints on pricing freedom presented by competition, NEER may also face specific constraints in the form of price caps, or maximum allowed prices, for certain products.
The nature of the products offered varies based on the specifics of regulation in each region. Generally, in addition to the natural constraints on pricing freedom presented by competition, NEER may also face specific constraints in the form of price caps, or maximum allowed prices, for certain products.
At December 31, 2024, FPL had the following significant fuel and transportation contracts in place: • firm transportation contracts with ten different transportation suppliers for natural gas pipeline capacity for an aggregate maximum delivery quantity of 2,836,000 MMBtu/day with expiration dates through 2042 (see Note 15 – Contracts); • several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel with expiration dates through 2039; and • short- and medium-term natural gas supply contracts, with expiration dates through 2028, to provide a portion of FPL's anticipated needs for natural gas, with the remainder of FPL's natural gas requirements being purchased in the spot market. 7 Table of Content s Nuclear Operations At December 31, 2024, FPL owned, or had undivided interests in, and operated the four nuclear units in Florida discussed below.
As of December 31, 2025, FPL had the following significant fuel and transportation contracts in place: • firm transportation contracts with ten different transportation suppliers for natural gas pipeline capacity for an aggregate maximum delivery quantity of 2,836,000 MMBtu/day with expiration dates through 2042 (see Note 15 – Contracts); • several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel with expiration dates through 2039 ; and • short- and medium-term natural gas supply contracts, with expiration dates through 2028, to provide a portion of FPL's anticipated needs for natural gas, with the remainder of FPL's natural gas requirements being purchased in the spot market.
At December 31, 2024, NEER also had generation facilities with a total net generating capacity of approximately 9,196 MW that fall within reliability regions that are not under the jurisdiction of an established RTO or ISO, including 5,806 MW within the Western Electricity Coordinating Council and 2,909 MW within the SERC Reliability Corporation.
As of December 31, 2025, NEER also had generation facilities with a total net generating capacity of approximately 9,788 MW that fall within reliability regions that are not under the jurisdiction of an established RTO or ISO, including 6,121 MW within the Western Electricity Coordinating Council and 2,977 MW within the SERC Reliability Corporation.
Crews served as Vice President, Business Management of NextEra Energy Resources from March 2019 to February 2022 and was Executive Vice President, Finance and Chief Financial Officer of NEE and FPL from March 2022 until May 2024 . Mrs. Daggs served as Vice President, Human Resources for FPL from April 2018 to December 2023. Mr.
Coffey served as Vice President, Nuclear for FPL from May 2019 to June 2021. Mr. Crews served as Vice President, Business Management of NextEra Energy Resources from March 2019 to February 2022 and was Executive Vice President, Finance and Chief Financial Officer of NEE and FPL from March 2022 until May 2024 . Mrs.
(b) Excludes 147 MW operated by NEER but owned by non-affiliates. (c) Includes 297 MW sold under a long-term contract. (d) NEER sells all of the output of Point Beach Units Nos. 1 and 2 under long-term contracts through their current operating license expiration dates.
(b) Excludes 147 MW operated by NEER but owned by non-affiliates. (c) Includes 261 MW sold under a long-term contract. (d) NEER sells all of the output of Point Beach Units 1 and 2 under long-term contracts through 2030 and 2033, respectively, and sells 84 MW from each unit through their respective operating license dates.
Jurisdiction NEET's Rate Base (millions) Miles Substations Kilovolt Location Rate Regulator Ownership Actual/Expected In-Service Dates Operational: CAISO $1,166 223 9 200 (a) – 230 California and Nevada FERC 100% 1960 – 2021 ERCOT $719 354 11 345 Texas PUCT 100% 2013 Independent Electricity System Operator (IESO) $294 280 – 230 Ontario, Canada OEB 48% 2022 NYISO $228 20 2 345 New York FERC 100% 2021 – 2022 Southwest Power Pool (SPP) $89 466 18 69 – 115 Kansas and Oklahoma FERC 100% (b) 1960 – 2021 Other $228 70 3 161 – 345 Illinois, Indiana, Kentucky and New Hampshire FERC 100% (c) 1953 – 1982 Under Construction: SPP (d) 279 – 345 Kansas, Missouri, New Mexico and Oklahoma FERC 100% 2025 – 2026 CAISO 142 6 230 – 500 California and Nevada FERC 100% 2027 – 2029 PJM 105 1 500 Maryland, Pennsylvania, Virginia and West Virginia FERC 100% 2031 ERCOT 43 8 138 – 345 Texas PUCT 100% 2025 – 2028 ______________________ (a) Direct current (b) Includes a 33-mile transmission line and 5 substations, in which NEET owns a 65% interest.
Jurisdiction Miles Substations Kilovolt Location Rate Regulator Ownership Actual/Expected In-Service Dates Operational: Southwest Power Pool (SPP) 607 18 69 – 345 Kansas, Missouri and Oklahoma FERC 100% (a) 1960 – 2025 ERCOT 374 12 138 – 345 Texas PUCT 100% 2013 Independent Electricity System Operator (IESO) 280 – 230 Ontario, Canada OEB 48% 2022 CAISO 223 9 200 (b) – 230 California and Nevada FERC 100% (c) 1960 – 2021 NYISO 20 2 345 New York FERC 100% 2021 – 2022 Other 70 3 161 – 345 Illinois, Indiana, Kentucky and New Hampshire FERC 100% (d) 1953 – 1982 Under Construction: CAISO 142 7 230 – 500 Arizona, California and Nevada FERC 100% 2027 – 2031 MISO 139 – 161 – 765 Minnesota and Wisconsin FERC 40% 2034 SPP 137 – 345 New Mexico FERC 100% 2026 PJM 108 1 500 Maryland, Pennsylvania, Virginia and West Virginia FERC 100% 2031 ERCOT 41 5 345 Texas PUCT 100% 2026 – 2028 ______________________ (a) Includes a 33-mile transmission line and 5 substations, in which NEET owns a 65% interest.
The NERC's regional entities also enforce reliability standards approved by the FERC. FPL is subject to these reliability standards and incurs costs to ensure compliance with continually heightened requirements, and can incur significant penalties for failing to comply with them. FPL Environmental Regulation FPL is subject to environmental laws and regulations as described in the NEE Environmental Matters section below.
FPL is subject to these reliability standards and incurs costs to ensure compliance with continually heightened requirements, and can incur significant penalties for failing to comply with them. 10 Table of Content s FPL Environmental Regulation FPL is subject to environmental laws and regulations as described in the NEE Environmental Matters section below.
The NEER segment also owns, develops, constructs and operates rate-regulated transmission facilities in North America with a total rate base of $2.7 billion at December 31, 2024 .
The NEER segment also owns, develops, constructs and operates rate-regulated electric transmission assets in North America with a total rate base of $3.2 billion as of December 31, 2025 .
Nuclear facilities placed in service after 2024 (including the restart of nuclear facilities previously in decommissioning) are eligible for the 100% PTC or 30% ITC, subject to the same requirements applicable to wind and solar facilities (discussed above).
Nuclear facilities placed in service after 2024 (including the restart of nuclear facilities previously in decommissioning) that begin construction by December 31, 2033 are eligible for the 100% PTC or 30% ITC (no eligibility for facilities that begin construction after 2035), and are subject to the same labor requirements and credit enhancements applicable to wind and solar facilities (discussed above).
May 48 Vice President, Controller and Chief Accounting Officer of NEE March 1, 2019 Armando Pimentel, Jr. 62 President and Chief Executive Officer of FPL February 15, 2023 Ronald R. Reagan 56 Executive Vice President, Engineering, Construction and Integrated Supply Chain of NEE Vice President, Engineering and Construction of FPL January 1, 2020 March 1, 2019 Charles E.
May 49 Treasurer and Assistant Secretary of NEE Treasurer of FPL May 22, 2025 Armando Pimentel, Jr. 63 Chief Executive Officer of FPL February 15, 2023 Ronald R. Reagan 57 Executive Vice President, Engineering, Construction and Integrated Supply Chain of NEE Vice President, Engineering and Construction of FPL January 1, 2020 March 1, 2019 Charles E.
Substantially all of the results of EMT's activities are passed through to customers in the fuel or capacity clauses. See Management's Discussion – Energy Marketing and Trading and Market Risk Sensitivity and Note 3.
The results of EMT's activities are primarily passed through to customers in the fuel or capacity clauses, and beginning in 2026, certain amounts will be recognized in base rates. See Management's Discussion – Energy Marketing and Trading and Market Risk Sensitivity and Note 3.
Customer Supply – NEER provides commodities-related products to customers, engages in energy-related commodity marketing and trading activities and includes the operations of a retail electricity provider and ownership interests in natural gas and oil shale formations located primarily in the South region of the U.S.
(b) In January 2026, NextEra Energy Resources increased its ownership interest to 36.02%. 17 Table of Content s Other Operations Customer Supply – NEER provides commodities-related products to customers, including municipal utilities and cooperatives, engages in energy-related commodity marketing and trading activities and includes the operations of a retail electricity provider and ownership interests in natural gas and oil shale formations located primarily in the South region of the U.S.
NEER, with appr oximately 33,410 MW of total net generating capacity at December 31, 2024 , is one of the largest wholesale generators of electric power in the U.S., including approximately 32,890 MW of net generating capacity across 41 states and 520 MW of net generating capacity in 4 Canadian provinces .
NEER, with appr oximately 37,505 MW of total net generating capacity as of December 31, 2025 , is one of the largest wholesale generators of electric power in the U.S., including approximately 37,145 MW of net generating capacity across 44 states and 360 MW of net generating capacity in 4 Canadian provinces .
For the building of new steam and solar generating capacity of 75 MW or greater, the FPSC requires investor-owned electric utilities, including FPL, to issue a request for proposal (RFP) except when the FPSC determines that an exception from the RFP process is in the public interest.
In 2025, 2024 and 2023, annual operating revenues from wholesale and ind ustrial electric customers combined represented approximately 5% of FPL's total operating revenues. 6 Table of Content s For the building of new steam and solar generating capacity of 75 MW or greater, the FPSC requires investor-owned electric utilities, including FPL, to issue a request for proposal (RFP) except when the FPSC determines that an exception from the RFP process is in the public interest.
Solar Facilities • located in 31 states in the U.S.; • operated photovoltaic and solar thermal facilities with a total generating capacity of approximately 10,157 MW, including capacity associated with noncontrolling and joint venture interests , at December 31, 2024 ; • ownership interests in solar facilities with a total net generating capacity of approximately 7,837 MW at December 31, 2024 ; ◦ essentially all MW are contracted solar facilities located primarily throughout the West and South regions of the U.S.; ◦ includes the impacts of approximately 2,507 MW of generating capacity added in the U.S. in 2024 and an ownership interest in assets sold to a third party totaling approximately 527 MW (see Note 1 – Disposal of Businesses/Assets).
Solar Facilities • located in 35 states in the U.S.; • operated photovoltaic and solar thermal facilities with a total generating capacity of approximately 12,794 MW, including capacity associated with noncontrolling and joint venture interests , as of December 31, 2025 ; • ownership interests in solar facilities with a total net generating capacity of approximately 10,504 MW as of December 31, 2025 ; ◦ essentially all MW are contracted solar facilities located primarily throughout the West and South regions of the U.S.; ◦ includes the impact of approximately 2,859 MW of generating capacity added in the U.S. in 2025, as well as assets sold to a third party totaling approximately 188 MW.
The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the U.S. a nd Canada and also includes assets and investments in other clean energy businesses, such as battery storage and natural gas pipelines.
The NEER segment owns, develops, constructs, manages and operates generation facilities, including renewables, nuclear and natural gas, as well as battery storage facilities in wholesale energy markets in the U.S. a nd Canada.
If a bidder has the most cost-effective alternative, meets other criteria such as financial viability and demonstrates adequate expertise and experience in building and/or operating generating capacity of the type proposed, the investor-owned electric utility would seek to negotiate a PPA with the selected bidder and request that the FPSC approve the terms of the PPA and, if appropriate, provide the required authorization for the construction of the bidder's generating capacity. 6 Table of Content s FPL SOURCES OF GENERATION At December 31, 2024 , FPL's resources for serving load consisted of approximately 35,296 MW of net generating capacity, of which 35,052 MW were from FPL-owned facilities and 244 MW were available through PPAs.
If a bidder has the most cost-effective alternative, meets other criteria such as financial viability and demonstrates adequate expertise and experience in building and/or operating generating capacity of the type proposed, the investor-owned electric utility would seek to negotiate a PPA with the selected bidder and request that the FPSC approve the terms of the PPA and, if appropriate, provide the required authorization for the construction of the bidder's generating capacity.
Dunne served as Vice President Finance of NEE from April 2022 to December 2022. He was previously Managing Director, Global Energy & Power Investment Banking for Bank of America from January 2012 to March 2022. Mr. Ketchum served as President and Chief Executive Officer of NEE from March 2022 to July 2022.
He was previously Managing Director, Global Energy & Power Investment Banking for Bank of America from January 2012 to March 2022. Mr. Gough served as Vice President, Financial Planning and Analysis of NEE from October 2024 to May 2025 and Executive Director, Financial Planning and Analysis of NEE from January 2024 to October 2024.
Lemasney served as Vice President of Power Generation Division Engineering and Operations Support Services of NEE from November 2018 to December 2022. Mr. Pimentel serves as a member of the Board of Directors of Ameriprise Financial, Inc. since September 2022 and previously served as President and Chief Executive Officer of NextEra Energy Resources from October 2011 to March 2019. Mr.
Ketchum served as President and Chief Executive Officer of NEE from March 2022 to July 2022. He previously served as President and Chief Executive Officer of NextEra Energy Resources from March 2019 to February 2022. Mr. Lemasney served as Vice President of Power Generation Division Engineering and Operations Support Services of NEE from November 2018 to December 2022. Mr.
These cost recovery clause charges are calculated annually based on estimated costs and estimated customer usage for the following year, plus or minus true-up adjustments to reflect the estimated over or under recovery of costs for the current and prior periods. An adjustment to the levelized charges may be approved during the course of a year to reflect revised estimates.
Cost recovery clause costs are recovered through levelized monthly charges per kWh or kW, depending on the customer's rate class. These cost recovery clause charges are calculated annually based on estimated costs and estimated customer usage for the following year, plus or minus true-up adjustments to reflect the estimated over- or under-recovery of costs for the current and prior periods.
Lucie Unit No. 1 981 September 2025 2036 (a) St. Lucie Unit No. 2 840 (b) April 2026 2043 (a) Turkey Point Unit No. 3 837 February 2026 2052 (c) Turkey Point Unit No. 4 844 March 2025 2053 (c) ______________________ (a) In 2021, FPL filed an application with the NRC to renew both St.
Lucie Unit 2 840 (b) April 2026 2043 (a) Turkey Point Unit 3 837 February 2028 2052 (c) Turkey Point Unit 4 844 February 2027 2053 (c) ______________________ (a) In 2021, FPL filed an application with the NRC to renew both St. Lucie operating licenses for an additional 20 years. License renewals are pending.
EMT procures natural gas and low sulfur diesel for FPL's use in power generation and sells excess natural gas, low sulfur diesel and electricity. EMT also uses derivative instruments (primarily swaps, options and forwards) to manage the physical and financial risks inherent in the purchase and sale of fuel and electricity.
FPL sells excess fuel and electricity when available and also uses derivative instruments (primarily swaps, options and forwards) to manage the physical and financial risks inherent in the purchase and sale of fuel and electricity.
Fuel Sources FPL relies upon a mix of fuel sources for its generation facilities, the ability of some of its generation facilities to operate on both natural gas and low sulfur diesel, and on purchased power to maintain the flexibility to achieve a more economical fuel mix in order to respond to market and industry developments.
Fuel Sources FPL relies upon a mix of fuel sources for its generation facilities, the ability of some of its generation facilities to operate on both natural gas and low sulfur diesel, the use of battery storage at certain generation facilities and on purchased power to maintain the flexibility to achieve a more economical fuel mix in order to respond to market and industry developments. *approximately 66% has dual fuel capability **certain solar facilities have approximately 582 MW of co-located batteries 7 Table of Content s Significant Fuel and Transportation Contracts.
Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge.
Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs, inclusive of the costs to replenish the storm reserve, exceed the cap, FPL could request an increase to the $5 surcharge.
If the earned regulatory ROE rises above 11.80%, any party with standing may seek a review of FPL's retail base rates. • Subject to certain conditions, FPL may amortize, over the term of the 2021 rate agreement, up to $1.45 billion of depreciation reserve surplus, provided that in any year of the 2021 rate agreement FPL must amortize at least enough reserve amount to maintain its minimum authorized regulatory ROE and also may not amortize any reserve amount that would result in an earned regulatory ROE in excess of its maximum authorized regulatory ROE. • FPL is authorized to expand SolarTogether ® by constructing an additional 1,788 MW of solar generation from 2022 through 2025, such that the total capacity of SolarTogether ® would be 3,278 MW. • Future storm restoration costs would be recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $4 for every 1,000 kWh of usage on residential bills during the first 12 months of cost recovery.
Subject to certain conditions, FPL could amortize the RSM reserve over the term of the 2025 rate agreement, provided that in any 12-month period of the 2025 rate agreement FPL would be required to amortize at least enough RSM reserve amount to maintain its minimum authorized regulatory ROE and also could not amortize any RSM reserve amount that would result in an earned regulatory ROE in excess of its maximum authorized regulatory ROE. • Future storm restoration costs are recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that produces a surcharge of no more than $5 for every 1,000 kWh of usage on residential bills during the first 12 months of cost recovery.
The following diagram depicts NEE's simplified ownership structure: 4 Table of Content s FPL FPL is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S.
NEECH, a wholly owned subsidiary of NEE, owns and provides funding for NEE's operating subsidiaries, other than FPL and its subsidiaries. The following diagram depicts NEE's simplified ownership structure: 4 Table of Content s FPL FPL is a rate-regulated electric utility engaged primarily in the generation, storage, transmission, distribution and sale of electric energy in Florida.
In addition to self-generation by residential, commercial and industrial customers, FPL also faces competition from other suppliers of electrical energy to wholesale and industrial customers and from alternative energy sources. In 2024, 2023 and 2022, operating revenues from wholesale and ind ustrial electric customers combined represented approximately 5%, 5% and 7%, respectively, of FPL's total operating revenues.
In addition to self-generation by residential, commercial and industrial customers, FPL also faces competition from other suppliers of electrical energy to wholesale and industrial customers and from alternative energy sources.
The EPA also works with industries and all levels of government, including federal and state governments, in a wide variety of voluntary pollution prevention programs and energy conservation efforts. 8 Table of Content s FPL Electric Rate Regulation The FPSC sets rates at a level that is intended to allow the utility the opportunity to collect from retail customers total revenues (revenue requirements) equal to its cost of providing service, including a reasonable rate of return on invested capital.
FPL Electric Rate Regulation The FPSC sets rates at a level that is intended to allow the utility the opportunity to collect from retail customers total revenues (revenue requirements) equal to its cost of providing service, including a reasonable rate of return on invested capital.
FPL's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages require the unit to be removed from service for variable lengths of time. Facility Net Generating Capacity (MW) Beginning of Next Scheduled Refueling Outage Operating License Expiration Date St.
Scheduled nuclear refueling outages require the unit to be removed from service for variable lengths of time. Facility Net Generating Capacity (MW) Beginning of Next Scheduled Refueling Outage Operating License Expiration Date St. Lucie Unit 1 981 April 2027 2036 (a) St.
Kujawa 49 President and Chief Executive Officer of NextEra Energy Resources March 1, 2022 Mark Lemasney 49 Executive Vice President, Power Generation Division of NEE Executive Vice President, Power Generation Division of FPL January 1, 2023 James M.
Ketchum 55 Chairman, President and Chief Executive Officer of NEE Chairman of FPL July 29, 2022 February 15, 2023 Mark Lemasney 50 Executive Vice President, Power Generation Division of NEE Executive Vice President, Power Generation Division of FPL January 1, 2023 James M.
Expanded competition in a frequently changing regulatory environment presents both opportunities and risks for NEER. Opportunities exist for the selective acquisition of generation assets and for the construction and operation of efficient facilities 18 Table of Content s that can sell power in competitive markets.
Opportunities exist for the selective acquisition of generation assets and for the construction and operation of efficient facilities that can sell power in competitive markets.
At December 31, 2024, approximately 94% of NEER's net generating capacity was committed under long-term contracts. Where long-term contracts are not in effect, NEER sells the output of its facilities into daily spot markets.
As of December 31, 2025, approximately 95% of NEER's net generating capacity was committed under long-term contracts. As long-term contacts approach maturity, NEER expects to pursue recontracting and other commercial renewals where supported by market conditions and customer demand. Where long-term contracts are not in effect, NEER sells the output of its facilities into daily spot markets.
Owners of wind and solar facilities are eligible to claim an income tax credit (the PTC, or an ITC in lieu of the PTC) upon initially achieving commercial operation.
Owners of wind and solar facilities are eligible to claim an income tax credit (the PTC, or an ITC in lieu of the PTC) upon initially achieving commercial operation. The One Big Beautiful Bill Act (OBBBA) modified several pre-existing provisions, including the phase out of these income tax credits, of the Inflation Reduction Act and other laws.
Energy storage projects and renewable natural gas facilities are eligible for a 10 percentage point increase in the ITC rate if the facilities satisfy certain tax credit enhancement requirements. 15 Table of Content s Nuclear facilities placed in service before August 16, 2022, are eligible for a PTC of $3/MWh (increased to $15/MWh if certain prevailing wage requirements are satisfied) for electricity produced and sold after 2023 and before 2033.
There will be no clean energy tax credits for wind or solar facilities placed in service after 2030. Nuclear facilities placed in service before August 16, 2022, are eligible for a PTC of $3/MWh (increased to $15/MWh if certain prevailing wage requirements are satisfied) for electricity produced and sold after 2023 and before 2033.
NEER utilizes swaps, options, futures and forwards to lock in pricing and manage the commodity price risk inherent in power sales and fuel purchases. 13 Table of Content s NEER Generation Assets' Fuel/Technology Mix During 2024 , NEER generated approximately 111 million MWh utilizing the following mix of fuel sources for generation facilities in which it has an ownership interest: *Primarily natural gas Wind Facilities • located in 23 states in the U.S. and 4 provinces in Canada; • operated a total generating capacity of approximately 26,335 MW, including capacity associated with noncontrolling and joint venture interests, at December 31, 2024; • ownership interests in a total net generating capacity of approximately 20,977 MW at December 31, 2024; ◦ essentially all MW are contracted wind assets located primarily throughout Texas and the West and Midwest regions of the U.S. and Canada; ◦ includes the impacts of approximately 1,365 MW of new generating capacity added in the U.S. in 2024 and an ownership interest in assets sold to a third party totaling approximately 536 MW (see Note 1 – Disposal of Businesses/Assets).
In response to potential customer needs, NEER evaluates opportunities for expanding its portfolio of generation assets, including adding new facilities and repowering its current facilities. 13 Table of Content s NEER Generation Assets' Fuel/Technology Mix During 2025 , NEER generated approximately 121 million MWh utilizing the following mix of fuel sources for generation facilities in which it has an ownership interest: Wind Facilities • located in 23 states in the U.S. and 4 provinces in Canada; • operated a total generating capacity of approximately 27,855 MW, including capacity associated with noncontrolling and joint venture interests, as of December 31, 2025; • ownership interests in a total net generating capacity of approximately 22,404 MW as of December 31, 2025; ◦ essentially all MW are contracted wind assets located primarily throughout Texas and the West and Midwest regions of the U.S. and Canada; ◦ includes the impact of approximately 1,604 MW of new generating capacity added in the U.S. in 2025, as well as ownership interests in assets sold to third parties totaling approximately 165 MW and includes repowering activity related to approximately 132 MW of wind generating capacity.
See Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery. • If federal or state permanent corporate income tax changes become effective during the term of the 2021 rate agreement, FPL will prospectively adjust base rates after a review by the FPSC. In March 2024, the FPSC issued a supplemental final order regarding FPL's 2021 rate agreement.
See Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery. • If federal or state permanent corporate income tax changes become effective during the term of the 2025 rate agreement, FPL will be able to prospectively adjust base rates after a review by the FPSC. • FPL will implement tariffs for large-load customers with new or incremental load of 50 MW or greater and with a load factor of at least 85%.
At December 31, 2024, FPL had 35,052 MW of net generating capacity, approximately 91,000 circuit miles of transmission and distribution lines and 921 substations. FPL provides service to its electric customers through an integrated transmission and distribution system that links its generation facilities to its customers. FPL serves approximately 12 million people through more than 6 million customer accounts.
FPL is the largest electric utility in Florida and the U.S. As of December 31, 2025, FPL had 35,963 MW of net generating capacity, approximately 93,000 circuit miles of transmission and distribution lines and 932 substations. FPL provides electric service through an integrated transmission and distribution system that links its generation facilities to its customers.
Key elements of the 2021 rate agreement, which is effective from January 2022 through December 2025, include, among other things, the following: • New retail base rates and charges were established resulting in the following increases in annualized retail base revenues: ◦ $692 million beginning January 1, 2022, and ◦ $560 million beginning January 1, 2023. • In addition, FPL received base rate increases associated with the addition of up to 894 MW annually of new solar generation through the SoBRA mechanism in each of 2024 and 2025.
Key elements of the 2021 rate agreement, which became effective in January 2022, include, among other things, the following: • New retail base rates and charges which resulted in the following increases in annualized retail base revenues: ◦ $692 million beginning January 1, 2022; and ◦ $560 million beginning January 1, 2023. • Additional base rate increases in 2024 and 2025 associated with the addition of 894 MW of new solar generation through the Solar Base Rate Adjustment mechanism in each year. • Authorized regulatory ROE of 10.60%, with a range of 9.70% to 11.70%, which was increased in 2022 to be 10.80%, with a range of 9.80% to 11.80%, based on a provision associated with an increase in the U.S.
Sieving previously served as Executive Vice President & General Counsel of NEE from December 2008 to May 2023. 20 Table of Content s
He previously served as President of FPL from February 2023 to December 2025 and as President and Chief Executive Officer of NextEra Energy Resources from October 2011 to March 2019. Mr. Sieving previously served as Executive Vice President and General Counsel of NEE from December 2008 to May 2023. 22 Table of Content s
Cost recovery clauses are designed to permit full recovery of certain costs and provide a return on certain assets allowed to be recovered through these clauses. Cost recovery clause costs are recovered through levelized monthly charges per kWh or kW, depending on the customer's rate class.
See Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery. Cost Recovery Clauses . Cost recovery clauses are designed to permit full recovery of certain costs and provide a return on certain assets allowed to be recovered through these clauses.
The PTC is determined based on the amount of electricity produced by the facility during the first ten years of commercial operation. A facility must also meet certain labor requirements to qualify for the 100% PTC or 30% ITC rate or construction must have started on the facility before January 29, 2023.
A facility must also meet certain labor requirements to qualify for the 100% PTC or 30% ITC rate or construction must have started on the facility before January 29, 2023. In addition, the PTC is increased by 10% and the ITC rate is increased by 10 percentage points for facilities that satisfy certain tax credit enhancement requirements.
NEER's rate-regulated transmission facilities and the transmission lines that connect its electric generation facilities, including noncontrolling or joint venture interests, to the electric grid are comprised of approximately 370 substations and 3,885 circuit miles of transmission lines at December 31, 2024 . NEER engages in energy-related commodity marketing and trading activities, including entering into financial and physical contracts.
NEER's rate-regulated electric transmission assets and the transmission lines that connect its electric generation and battery storage facilities, including facilities of noncontrolling or joint venture interests, to the electric grid are comprised of approximately 400 substations and 4,175 circuit miles of transmission lines as of December 31, 2025 .

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeNEE'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.
Biggest changeAny disruptions or deficiencies in existing information systems, or disruptions, delays or deficiencies in the modification or implementation of new information systems, could result in increased costs, the inability to track or collect revenues and the diversion of management's and employees' attention and resources, and could negatively impact the effectiveness of NEE's and FPL's control environment, and/or their ability to timely file required regulatory reports which could materially adversely affect their business, financial condition, results of operations and prospects. 31 Table of Content s 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.
These factors, including the ultimate resolution of income tax matters, may result in material adjustments to tax-related assets and liabilities, which 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.
These factors, including the ultimate resolution of income tax matters, may result in material adjustments to tax-related assets and liabilities, which 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 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, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities or other facilities on schedule or within budget.
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, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities on schedule or within budget.
A disruption or failure of electric generation, transmission or distribution systems or natural gas production, transmission, storage or distribution systems in the event of a hurricane, tornado or other severe weather event, or otherwise, could prevent NEE and FPL from operating their business in the normal course and could result in any of the adverse consequences described above.
A disruption or failure of electric generation, storage, transmission or distribution systems or natural gas production, transmission, storage or distribution systems in the event of a hurricane, tornado or other severe weather event, or otherwise, could prevent NEE and FPL from operating their business in the normal course and could result in any of the adverse consequences described above.
Similarly, any requirement for FPL or NEE to post margin cash collateral under its derivative contracts could have a material adverse effect on its business, financial condition, results of operations and prospects. These risks may be increased during periods of adverse market or economic conditions such as inflation affecting the industry in which NEE and FPL participate.
Similarly, any requirement for NEE or FPL to post margin cash collateral under its derivative contracts could have a material adverse effect on its business, financial condition, results of operations and prospects. These risks may be increased during periods of adverse market or economic conditions such as inflation affecting the industry in which NEE and FPL participate.
This extensive regulatory framework, portions of which are more specifically identified in the following risk factors, regulates, among other things and to varying degrees, NEE's and FPL's industry, businesses, operations, and rates and cost structures, including: permitting, planning, construction and operation of electric generation, storage, transmission and distribution facilities and natural gas, oil and other fuel production, transportation, processing and storage facilities; acquisitions, disposals, depreciation and amortization of facilities and other assets; decommissioning costs and funding; service reliability; wholesale and retail competition; and commodities trading and derivatives transactions.
This extensive regulatory framework, portions of which are more specifically identified in the following risk factors, regulates, among other things and to varying degrees, NEE's and FPL's industry, businesses, operations, and rates and cost structures, including: siting, permitting, planning, construction and operation of electric generation, storage, transmission and distribution facilities and natural gas, oil and other fuel production, transportation, processing and storage facilities; acquisitions, disposals, depreciation and amortization of facilities and other assets; decommissioning costs and funding; service reliability; wholesale and retail competition; and commodities trading and derivatives transactions.
Operational risks could result in, among other things, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines for compliance failures or legal claims, liability to third parties for property and personal injury damage or loss of life, unsatisfied customers, a failure to perform under applicable power sales agreements or other agreements and associated loss of revenues from terminated agreements or liability for liquidated damages under continuing agreements, and replacement equipment costs or an obligation to purchase or generate replacement power at higher prices.
Operational uncertainties and risks could result in, among other things, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines for compliance failures or legal claims, liability to third parties for property and personal injury damage or loss of life, unsatisfied customers, a failure to perform under applicable power sales agreements or other agreements and associated loss of revenues from terminated agreements or liability for liquidated damages under continuing agreements, and replacement equipment costs or an obligation to purchase or generate replacement power at higher prices.
The inability of subsidiaries that have existing project-specific or other financing arrangements to meet the requirements of various agreements relating to those financings, as well as actions by third parties or lenders, could give rise to a project-specific financing default which, if not cured or waived, might result in the specific project, and potentially in some limited instances its parent companies, being required to repay the associated debt or other borrowings earlier than otherwise anticipated.
The inability of subsidiaries that have existing project-specific or other financing arrangements to meet the requirements of various agreements relating to those financings, as well as actions by third parties or lenders, could give rise to a project-specific financing default which, if not cured or waived, might result in the specific project, and potentially in some instances its parent companies, being required to repay the associated debt or other borrowings earlier than otherwise anticipated.
Should NEE or FPL be unsuccessful in obtaining necessary licenses or permits on acceptable terms or resolving third-party challenges to such licenses or permits, should there be any delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any associated investigations or enforcement actions or impose related penalties or disallowances on NEE or FPL, NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected.
Should NEE or FPL be unsuccessful in obtaining or maintaining necessary licenses or permits on acceptable terms or resolving third-party challenges to such licenses or permits, should there be any delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any associated investigations or enforcement actions or impose related penalties or disallowances on NEE or FPL, NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected.
Any of these events could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. NEE and FPL 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.
Any of these events could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. NEE and FPL face risks related to project siting, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede their development and operating activities.
NEE depends heavily on government policies that support clean energy and enhance the economic feasibility of developing and operating clean energy projects in regions in which NEER and FPL operate or plan to develop and operate such facilities.
NEE depends on government policies that support clean energy and enhance the economic feasibility of developing and operating clean energy projects in regions in which NEER and FPL operate or plan to develop and operate such facilities.
Geopolitical factors, terrorist acts, cyberattacks or other similar events affecting NEE's and FPL's systems and facilities, or those of third parties on which NEE and FPL rely, could harm NEE's and FPL's businesses by, for example, limiting their ability to generate, purchase, store or transmit power, natural gas or other energy-related commodities, limiting their ability to bill customers and collect and process payments, and delaying their development and construction of new generation, distribution, storage or transmission facilities or capital improvements to existing facilities.
Geopolitical factors, terrorist acts, cyberattacks or other similar events affecting NEE's and FPL's systems and facilities, or those of third parties on which NEE and FPL rely, could harm NEE's and FPL's businesses by, for example, limiting their ability to generate, purchase, store or transmit power, natural gas or other energy-related commodities, limiting their ability to bill customers and collect and process payments, and delaying their development and construction of new electric generation, storage, distribution or transmission assets or capital improvements to existing facilities.
Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, guidance or policies, including, but not limited to, changes in corporate income tax rates, renewable energy tax credits and transferability of renewable energy tax credits, the issuance of guidance related to the qualification for renewable energy tax credits and bonus credits, the financial condition and results of operations of NEE and FPL and the resolution of audit issues raised by taxing authorities.
Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, guidance or policies, including, but not limited to, changes in corporate income tax rates, clean energy tax credits and transferability of clean energy tax credits, the issuance of guidance related to the qualification for clean energy tax credits and bonus credits, the financial condition and results of operations of NEE and FPL and the resolution of audit issues raised by taxing authorities.
NEE's and FPL's generation, transmission, storage and distribution facilities, information technology systems and other infrastructure facilities and systems could be direct targets of, or otherwise be materially adversely affected by, such activities.
NEE's and FPL's electric generation, storage, transmission and distribution facilities, information technology systems and other infrastructure facilities and systems could be direct targets of, or otherwise be materially adversely affected by, such activities.
Any reductions or modifications to, or the elimination of, governmental incentives or policies that support clean energy, including, but not limited to, tax laws, policies and incentives, RPS and feed-in-tariffs, or the imposition of additional taxes, tariffs, duties or other costs or assessments on clean energy or the equipment necessary to generate, store or deliver it, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new clean energy projects, NEE and FPL abandoning the development of clean energy projects, a loss of investments 21 Table of Content s in clean energy projects and reduced project returns, any of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
Any reductions or modifications to, or the elimination of, governmental incentives or policies that support clean energy, including, but not limited to, tax laws, policies and incentives, RPS and feed-in-tariffs, or changes in or the imposition of additional taxes, tariffs, duties or other costs or assessments on clean energy or the equipment necessary to generate, store or deliver it, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new clean energy projects, NEE and FPL abandoning the development of clean energy projects, a 23 Table of Content s loss of investments in clean energy projects and reduced project returns, any of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
The regulatory process, which may be adversely affected by the geopolitical, political, regulatory, operational and economic environment in Florida and elsewhere, limits or could otherwise adversely impact FPL's earnings.
The regulatory process, which may be adversely affected by the geopolitical, political, regulatory, operational and economic environment in Florida and elsewhere, limits or could otherwise adversely impact NEE's and FPL's earnings.
NEE's and FPL's ability to proceed with projects under development and to complete construction of, and capital improvement projects for, their electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities on schedule and within budget have been, from time to time, and in the future may be, adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms or on schedule, disputes involving contractors, labor organizations, land owners, governmental entities, environmental groups, Native American and aboriginal groups, lessors, joint venture partners, suppliers and other third parties, negative publicity, transmission interconnection issues, geopolitical factors, supply chain disruptions, inflation, rising interest rates and other factors.
NEE's and FPL's ability to proceed with projects under development and to complete construction of, and capital improvement projects for, their electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities on schedule and within budget have been, from time to time, and in the future may be, adversely affected by timely availability of equipment and labor, escalating costs for materials, labor and regulatory compliance, inability to obtain, maintain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms or on schedule, disputes involving contractors, labor organizations, land owners, governmental entities, environmental groups, Native American and aboriginal groups, lessors, joint venture partners, suppliers and other third parties, negative publicity, transmission interconnection issues, geopolitical factors, supply chain disruptions, inflation, rising interest rates and other factors.
NEE's and FPL's electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities are subject to many operational risks.
NEE's and FPL's electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities are subject to many operational uncertainties and risks.
Due to the potential for significant volatility in market prices for fuel, electricity and environmental and other energy-related commodities, NEE's inability or failure to manage properly or hedge effectively the commodity risks within its portfolio could 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, transmission rights and environmental and other energy-related commodities, NEE's inability or failure to manage properly or hedge effectively the commodity risks within its portfolio could materially adversely affect NEE's business, financial condition, results of operations and prospects.
NEE's ability to meet its financial obligations, including, but not limited to, its guarantees, and to pay dividends on its common stock is primarily dependent on its subsidiaries' net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends or to repay funds to NEE.
NEE's ability to meet its financial obligations, including, but not limited to, its guarantees, and to pay dividends on its common stock is primarily dependent on its subsidiaries' net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends, make distributions or to repay funds to NEE.
NEE and FPL are subject to domestic environmental laws, regulations and other standards, including, but not limited to, extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality and usage, soil quality, climate change, greenhouse gas emissions, waste management, hazardous wastes, marine, avian, bat and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health (including, but not limited to, electric and magnetic fields from power lines and substations), safety and RPS, that could, among other things, prevent or delay the development of power generation, storage and transmission, gas transportation, or other development projects, restrict or enjoin the output of some existing facilities, limit the availability and use of some fuels required for the production of electricity, require additional pollution control equipment, and otherwise increase costs, increase capital expenditures and limit or eliminate certain operations.
NEE and FPL are subject to domestic environmental laws, regulations and other standards, including, but not limited to, extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality and usage, soil quality, greenhouse gas emissions, waste management, hazardous wastes, marine, avian, bat and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health (including, but not limited to, electric and magnetic fields from power lines and substations), safety, fire prevention and RPS, that could, among other things, prevent or delay the development of electric generation, storage, transmission and distribution facilities, gas transportation, or other development projects, restrict or enjoin the output of some existing facilities, limit the availability and use of some fuels required for the production of electricity, require additional pollution control and fire prevention equipment, and otherwise increase costs, increase capital expenditures and limit or eliminate certain operations.
There can be no assurance that NEE or FPL would be able to completely recover any such costs or investments, which could have a material adverse effect on their business, financial condition, results of operations and prospects.
There can be no assurance that NEE or FPL would be able to completely recover any such costs or investments, which could have a material adverse effect on its business, financial condition, results of operations and prospects.
Additionally, any actual or 23 Table of Content s alleged compliance failures could result in significant costs and other potentially adverse effects of regulatory investigations, proceedings, settlements, decisions and claims, including, among other items, potentially significant monetary penalties.
Additionally, any actual or alleged compliance failures could result in significant costs and other potentially adverse effects of regulatory investigations, proceedings, settlements, decisions 25 Table of Content s and claims, including, among other items, potentially significant monetary penalties.
If NEE or FPL is unable to recover the additional costs incurred through insurance or, in the case of FPL, through regulatory mechanisms, their business, financial condition, results of operations and prospects could be materially adversely affected.
If NEE or FPL is unable to recover the additional costs incurred through insurance or, in the case of FPL, through regulatory mechanisms, its business, financial condition, results of operations and prospects could be materially adversely affected.
The inability of NEE's subsidiaries, including, without limitation, NEECH and its subsidiaries, to access the capital 31 Table of Content s and credit markets to provide project-specific or other financing for electric generation or other facilities or acquisitions on favorable terms, whether because of disruptions or volatility in those markets or otherwise, could necessitate additional capital raising or borrowings by NEE and/or NEECH in the future and there can be no assurance that NEE or NEECH will have the ability to complete such financings.
The inability of NEE's subsidiaries, including, without limitation, NEECH and its subsidiaries, to access the capital and credit markets to provide project-specific or other financing for electric generation or other facilities or acquisitions on favorable terms, whether because of disruptions or volatility in those markets or otherwise, could necessitate additional capital raising or borrowings by NEE and/or NEECH in the future and there can be no assurance that NEE or NEECH will have the ability to complete such financings.
Uncertainties and risks inherent in operating and maintaining NEE's and FPL's facilities include, but are not limited to: • risks associated with facility start-up operations, such as whether the facility will achieve projected operating performance on schedule and otherwise as planned; • failures in the availability, acquisition or transportation of fuel or other necessary supplies; • the impact of unusual or adverse weather conditions and natural disasters, including, but not limited to, hurricanes, tornadoes, extreme temperatures, icing events, wildfires, floods, severe convective storms, earthquakes and droughts; • performance below expected or contracted levels of output or efficiency; • breakdown or failure, including, but not limited to, explosions, fires, leaks or other major events, of equipment, transmission or distribution systems or pipelines; • availability of replacement equipment; • risks of property damage, human injury or loss of life from energized equipment, hazardous substances or explosions, fires, leaks or other events, especially where facilities are located near populated areas; • potential environmental impacts of natural gas and oil production and transportation operations; • risks associated with potential harm to wildlife; • availability of adequate water resources and ability to satisfy water intake and discharge requirements; • inability to identify, manage properly or mitigate equipment defects in NEE's and FPL's facilities; • use of new or unproven technology; • inability to anticipate or adapt to changes in the reliability of NEE's or FPL's equipment, operating systems or facilities; • risks associated with dependence on a specific type of fuel or fuel source, such as commodity price risk, availability of adequate fuel supply and transportation, and lack of available alternative fuel sources; • increased competition due to, among other factors, new facilities, excess supply, shifting demand and regulatory changes; and • insufficient insurance, warranties or performance guarantees to cover any or all lost revenues or increased expenses from the foregoing.
Uncertainties and risks inherent in operating and maintaining NEE's and FPL's facilities that could cause these results include, but are not limited to: • risks associated with facility start-up operations, such as whether the facility will achieve projected operating performance on schedule and otherwise as planned; • failures in the availability, acquisition or transportation of fuel or other necessary supplies; • the impact of unusual or adverse weather conditions and natural disasters, including, but not limited to, hurricanes, tornadoes, extreme temperatures, icing events, wildfires, floods, severe convective storms, earthquakes and droughts; • performance below expected or contracted levels of output or efficiency; • breakdown or failure of equipment, transmission or distribution systems or pipelines whether as a result of explosions, fires, leaks, other events or otherwise; • lack of availability of replacement equipment; • risks of property damage, human injury or loss of life from energized equipment, hazardous substances or explosions, fires, leaks or other events, including where facilities are located near populated areas; • potential environmental impacts of natural gas and oil production and transportation operations; • risks associated with potential harm to wildlife; • lack of availability of adequate water resources and ability to satisfy water intake and discharge requirements; • inability to identify, manage properly or mitigate equipment defects in NEE's and FPL's facilities; • use of new or unproven technology; 27 Table of Content s • inability to anticipate or adapt to changes in the reliability of NEE's or FPL's equipment, operating systems or facilities; • risks associated with dependence on a specific type of fuel or fuel source, such as commodity price risk, availability of adequate fuel supply and transportation, and lack of available alternative fuel sources; • increased competition due to, among other factors, new facilities, excess supply, shifting demand and regulatory changes; and • insufficient insurance, warranties or performance guarantees to cover any or all lost revenues or increased expenses from the foregoing.
FPL operates in the east and lower west coasts of Florida and in northwest Florida, areas that historically have been prone to severe weather events, such as hurricanes.
For example, FPL operates in the east and lower west coasts of Florida and in northwest Florida, areas that historically have been prone to severe weather events, such as hurricanes.
NEE and FPL are subject to the potentially adverse operating and financial effects of geopolitical factors, terrorist acts and threats, as well as cyberattacks and other disruptive activities of individuals or groups.
NEE and FPL are subject to the potentially adverse operating and financial effects of geopolitical factors, terrorist acts and threats, cyberattacks and other disruptive activities of individuals or groups.
There can be no assurance that FPL or NEER will be able to respond adequately or sufficiently quickly to such rules and developments, which may impact the ability, timeline and cost of interconnecting new or repowered energy projects to the transmission system and the availability of transmission system capacity to deliver energy products to market, or to any changes that reverse or restrict the competitive restructuring of the energy industry in those jurisdictions in which such restructuring has occurred.
There can be no assurance that FPL or NEER will be able to respond adequately to such rules and developments, which may impact the ability, timeline and cost to interconnect new or repowered energy projects to the transmission system and the availability of transmission system capacity to deliver energy products to market, or to any changes that reverse or restrict the competitive restructuring of the energy industry in those jurisdictions in which such restructuring has occurred.
As a result, changes in the underlying assumptions or use of 29 Table of Content s alternative valuation methods could affect the reported fair value of these derivative instruments and have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. NEE and FPL may be materially adversely affected by negative publicity.
As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these derivative instruments and have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. NEE and FPL may be materially adversely affected by negative publicity.
FPL operates as an electric utility and is subject to the jurisdiction of the FPSC over a wide range of business activities, including, among other items, the retail rates charged to its customers through base rates and cost recovery clauses, the terms and conditions of its services, procurement of electricity for its customers and fuel for its plant operations, issuances of securities, and aspects of the siting, planning, construction and operation of its generation plants and transmission and distribution systems for the sale of electric energy.
FPL operates as an electric utility and is subject to the jurisdiction of the FPSC over a wide range of business activities, including, among other items, the retail rates charged to its customers through base rates and cost recovery clauses, the terms and conditions of its services, procurement of electricity for its customers and fuel for its plant operations, issuances of securities, and aspects of the siting, permitting, planning, construction and operation of its generation, storage, transmission and distribution facilities for the sale of electric energy.
Prolonged periods of low oil and gas prices or low production, including from unsuccessful drilling efforts, could also result in the delay or cancellation of natural gas and oil production projects, could cause projects to experience lower returns, and could result in certain assets becoming impaired, which could materially adversely affect NEE's business, financial condition, results of operations and prospects.
Prolonged periods of low oil and gas prices or low production, including from unsuccessful drilling efforts, could also result in the delay or cancellation of natural gas and oil production projects, could cause projects to experience 29 Table of Content s lower returns, and could result in certain assets becoming impaired, which could materially adversely affect NEE's business, financial condition, results of operations and prospects.
If such repayment were not made, the lenders or security holders would generally have rights to foreclose against the project assets and related collateral.
If such repayments were not made, the lenders or security holders would generally have rights to foreclose against the project assets and related collateral.
However, as a result of budgetary constraints, geopolitical factors, political factors or otherwise, governments from time to time may review their laws and policies that support, or do not overly burden, the development and operation of clean energy facilities and, instead, consider actions that would make the laws and policies less conducive to the development and operation of such projects.
However, as a result of budgetary constraints, geopolitical factors, political factors or otherwise, governments from time to time may review their laws and policies that support, or do not overly burden, the development and operation of clean energy facilities and, instead, consider or take actions, such as the OBBBA and related governmental actions, that make or would make the laws and policies less conducive to the development and operation of such projects.
NEE's and FPL's operations and businesses are subject to extensive federal, state and local government regulation, which generally imposes significant and increasing compliance costs on their operations and businesses.
NEE's and FPL's operations and businesses are subject to extensive federal, state and local government regulation, which generally imposes significant and increasing compliance costs.
There can be significant volatility in market prices for fuel, electricity and environmental and other energy-related commodities, both in general and across geographies.
There can be significant volatility in market prices for fuel, electricity, transmission rights and environmental and other energy-related commodities, both in general and across geographies.
As a result, disruptions, uncertainty or volatility in the credit and capital markets may, for example, have a material adverse effect on the market price of NEE's common stock. 33 Table of Content s Widespread public health crises and epidemics or pandemics may have material adverse impacts on NEE’s and FPL's business, financial condition, liquidity, results of operations and prospects.
As a result, disruptions, uncertainty or volatility in the credit and capital markets may, for example, have a material adverse effect on the market price of NEE's common stock. Widespread public health crises and epidemics or pandemics may have material adverse impacts on NEE’s and FPL's business, financial condition, liquidity, results of operations and prospects.
FPL has limited, but growing, competition in the Florida market for retail electricity customers and is not subject to a RPS.
FPL has limited, but growing, competition in the Florida market for retail electricity customers and is not subject to an RPS.
NEE and FPL own, develop, construct, manage and operate electric generation, storage and transmission facilities and natural gas pipelines. A key component of NEE's and FPL's growth is their ability to construct and operate generation, storage, transmission facilities and natural gas pipelines to meet customer needs.
NEE and FPL own, develop, construct, manage and operate electric generation, storage, transmission and distribution facilities and natural gas pipelines. A key component of NEE's and FPL's growth is their ability to site, permit, construct and operate generation, storage, transmission and distribution facilities and natural gas pipelines to meet customer needs.
A lack of growth, or a decline, in the number of customers or in customer demand for electricity or natural gas and other fuels may cause NEE and FPL to fail to fully realize the anticipated benefits from significant investments and expenditures and could have a material adverse effect on NEE's and FPL's growth, business, financial condition, results of operations and prospects.
A lack of growth, or a decline, in the number of customers or in customer demand for electricity or natural gas and other fuels may cause NEE and FPL to fail to fully realize benefits from pending and planned future investments and expenditures and could have a material adverse effect on NEE's and FPL's growth, business, financial condition, results of operations and prospects.
The inability of NEE, NEECH and FPL to maintain their current credit ratings could materially adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, could impact NEE's and FPL's ability to grow their businesses and service indebtedness and refinance or repay borrowings, and would likely increase their interest costs.
The inability of NEE, NEECH and FPL to maintain their current credit ratings could materially adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, would likely increase their interest costs and could impact NEE's and FPL's ability to raise capital to grow and otherwise fund their businesses, including, without limitation, to service indebtedness and refinance or repay borrowings.
In addition, the implementation of security guidelines and measures has resulted 26 Table of Content s in, and is expected to continue to result in, increased costs. Such events or actions may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.
In addition, the implementation of security guidelines and measures has resulted in, and is expected to continue to result in, increased costs. Such events or actions may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.
If any vendor or hedging or other counterparty fails to fulfill its contractual obligations, NEE and FPL may need to make arrangements with other counterparties or vendors, which could result in material financial losses, higher costs, untimely completion of power generation facilities and other projects, or a disruption of their operations.
If any customer, vendor or hedging or other counterparty fails to fulfill its contractual obligations, NEE and FPL may need to make arrangements with other counterparties, customers or vendors, which could result in material financial losses, higher costs, untimely completion of electric generation or storage facilities and other projects, or a disruption of their operations.
Occurrences affecting these operations that may or may not be beyond the control of subsidiaries of NEE, including FPL, (such as geopolitical factors, cyber incidents, physical attacks, severe weather or a generation or transmission facility outage, pipeline rupture, or sudden and significant increase or decrease in wind or solar generation) may limit or halt their ability to sell and deliver power and natural gas, or to purchase necessary fuels and other commodities, which could materially adversely impact NEE's and FPL's business, financial condition, results of operations and prospects.
Occurrences affecting these operations that may or may not be beyond the control of subsidiaries of NEE, including FPL, (such as geopolitical factors, cyber incidents, physical attacks, severe weather or a generation or transmission asset outage, pipeline rupture, or sudden and significant increase or decrease in wind or solar generation) may limit or halt their ability to sell and deliver power and natural gas, or to purchase necessary fuels 30 Table of Content s and other commodities, which could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.
Although certain NEE subsidiaries have used non-recourse or limited-recourse, project-specific or other financing in the past, market conditions, changes to regulatory capital requirements and other factors could adversely affect the future availability of such financing.
Although certain NEE subsidiaries have used non-recourse or limited-recourse, project-specific or other financing structures or arrangements in the past, market conditions, changes to regulatory capital requirements, credit ratings requirements and other factors could adversely affect the future availability of such financing, structures or arrangements.
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.
Changes in tax laws, guidance or policies, including but not limited to, changes in corporate income tax rates and the qualifications for clean energy tax credits, 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.
FPL and NEER are also regulated by FERC as transmission providers and sellers of wholesale power. FERC regulation of transmission and wholesale power transactions, including the ability of new energy infrastructure projects to sell the power they produce under power purchase agreements, evolves over time as a result of rulemaking proceedings and new legislative directives from Congress.
FPL and NEER are also regulated by FERC as transmission providers and sellers of wholesale power. FERC regulation of transmission and wholesale power transactions, including the ability of new energy infrastructure projects to interconnect to the transmission grid and sell the power they produce, evolves over time as a result of rulemaking proceedings and new legislative directives from Congress.
NEE's subsidiaries are separate legal entities and have no independent obligation to provide NEE with funds for its payment obligations. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can provide NEE with funds.
NEE's subsidiaries are separate legal entities and have no independent obligation to provide NEE with funds for its payment obligations. The subsidiaries have financial obligations themselves, including, but not limited to, payment of debt service, which they must satisfy before they can provide NEE with funds or make other payments to NEE.
Any changes in Florida law or regulation, whether through new or modified legislation, regulation or executive action or through citizen-approved state constitutional ballot initiatives, which increase competition in the Florida retail electricity market, such as government incentives that would further facilitate the installation of solar generation facilities on residential or other rooftops, would permit third-party sales of electricity or would mandate the transition to renewable energy at FPL, could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.
Any changes in Florida law or regulation, whether through new, modified, repealed or overturned legislation, regulation or executive action or through citizen-approved state constitutional ballot initiatives, which increase competition in the Florida retail electricity market, such as government incentives that would further facilitate the installation of solar generation facilities on residential or other rooftops or would permit third-party sales of electricity, could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.
NEE is an active participant in energy markets. Liquidity in energy markets can be described as the degree to which a product, such as electricity, gas or transmission rights, can be quickly bought or sold without significantly affecting its price and without incurring significant transaction costs.
Liquidity in energy markets can be described as the degree to which a product, such as electricity, gas or transmission rights, can be quickly bought or sold without significantly affecting its price and without incurring significant transaction costs.
Changes in the structure of the industry or in such laws and regulations could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
Changes in the 24 Table of Content s structure of the industry or in such laws and regulations could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
If NEE or FPL is unable to access regularly the capital and credit markets on terms that are reasonable, it may have to delay raising capital, issue shorter-term securities and incur an unfavorable cost of capital, which, in turn, could adversely affect its ability to maintain and grow its business, could contribute to lower earnings and reduced financial flexibility, and could have a material adverse effect on its business, financial condition, liquidity, results of operations and prospects.
If NEE or FPL is unable to access regularly the capital and credit markets on terms that are as expected, it may have to delay raising capital, issue shorter-term securities, incur an unfavorable cost of capital or reduce or eliminate planned investments, which, in turn, could adversely affect its ability to maintain and grow its business, could contribute to lower earnings or result in losses or reduced financial flexibility and could have a material adverse effect on its business, financial condition, liquidity, results of operations and prospects.
Furthermore, NEE's and FPL's physical plants could be placed at greater risk of damage should changes in the global climate produce unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, particularly relevant to FPL, a change in sea level.
Furthermore, NEE's and FPL's physical plants could be placed at greater risk of damage should there be unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, particularly relevant to FPL, a change in sea level.
For example, the ability of NEE and FPL to develop solar generation and battery storage facilities is dependent on the international supply chain for solar panels, batteries and associated equipment, and governmental or regulatory actions have caused minor, and could in the future cause material, 24 Table of Content s disruptions in the ability of NEE and FPL to acquire solar panels and batteries on time and at acceptable costs.
For example, the ability of NEE and FPL to develop certain generation and storage facilities is dependent on the international supply chain for generation equipment, batteries and other associated equipment, and governmental or regulatory actions have caused 26 Table of Content s minor, and could in the future cause material, disruptions in the ability of NEE and FPL to acquire certain generation equipment and batteries on time and at acceptable costs.
NEE cannot predict the impact of changing FERC rules or policies of the RTOs and ISOs, such as rules governing generator interconnection procedures and transmission planning requirements and cost allocation methodologies, or the effect of changes in levels of wholesale supply and demand, which are typically driven by factors beyond NEE's control.
NEE cannot predict the impact of changing FERC rules or policies of the RTOs and ISOs, such as existing or potential future rules governing economic dispatch, generator and load interconnection procedures, transmission planning requirements, cost allocation methodologies and cost recovery policies, or the effect of changes in levels of wholesale supply and demand, which are typically driven by factors beyond NEE's control.
If cost recovery arrangements for increased supply costs necessary to provide NEER's full energy and capacity requirements services are not favorable, operating costs could increase and materially adversely affect NEE's business, financial condition, results of operations and prospects.
If supply costs necessary to provide NEER's full energy and capacity requirements services are not favorable, operating costs could increase and materially adversely affect NEE's business, financial condition, results of operations and prospects.
NEE's reliance on the joint venture partners, who may not always share NEE's business priorities, may have a material adverse effect on NEE's liquidity, financial condition and results of operations.
NEE's joint venture partners may not always share NEE's business priorities which may have a material adverse effect on NEE's liquidity, financial condition and results of operations.
There can be no assurance that one or more of the ratings of NEE, NEECH and FPL will not be lowered or withdrawn entirely by a rating agency. 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.
There can be no assurance that one or more of the ratings of NEE, NEECH and FPL will not be lowered or withdrawn entirely by a rating agency. 34 Table of Content s NEE's and FPL's liquidity may be reduced if their credit providers are unable to fund their credit commitments to NEE, NEECH or FPL or to maintain their current credit ratings.
NEE expects the laws and regulation applicable to its business and the energy industry, including laws and regulations generally 22 Table of Content s supportive of clean energy project development, generally to be in a state of transition for the foreseeable future.
NEE expects the laws and regulations applicable to its business and the energy industry, including laws and regulations generally supportive of clean energy project development, generally to be in a state of transition for the foreseeable future.
As part of these operations, NEE and FPL must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions.
As part of these operations, NEE and FPL must periodically apply for licenses and permits, including those related to project siting, from various local, state, federal and other regulatory authorities and abide by their respective conditions.
Because the levels of wind and solar resources are variable and difficult to predict, NEER's results of operations for individual wind and solar facilities specifically, and NEE's results of operations generally, may vary significantly from period to period, depending on the level of available resources.
For example, the level of wind resource affects the revenue produced by wind generation facilities. Because the levels of wind and solar resources are variable and difficult to predict, NEER's results of operations for individual wind and solar facilities specifically, and NEE's results of operations generally, may vary significantly from period to period, depending on the level of available resources.
Disruptions, uncertainty or volatility in those capital and credit markets related to, among others, inflation, rising or sustained higher interest rates and political, regulatory and geopolitical events, could increase NEE's and FPL's cost of capital and affect their ability to fund their liquidity and capital needs, to refinance existing indebtedness and to meet their growth objectives.
Disruptions, uncertainty or volatility in those capital and credit markets related to or caused by inflation, rising or sustained higher interest rates, political, regulatory and geopolitical events or other factors could increase NEE's and FPL's cost of capital and limit or eliminate their ability to fund their liquidity and capital needs, to refinance existing indebtedness and to meet their growth objectives.
The supply costs for these transactions may be affected by a number of factors, including, but not limited to, events that may occur after such utilities have committed to supply power, such as weather conditions, transmission constraints, fluctuating prices for, and locational disconnects in, energy and ancillary services, and the ability of the distribution utilities' customers to elect to receive service from competing suppliers.
The supply costs for these transactions may be affected by a number of factors, including, but not limited to, weather conditions, transmission constraints, fluctuating prices for, and locational disconnects in, energy and ancillary services, and the ability of the distribution utilities' customers to elect to receive service from competing suppliers.
Any reductions or modifications to, or the elimination of, governmental incentives or policies that support clean energy, such as PTCs or ITCs, or the imposition of additional taxes, tariffs, duties or other costs or assessments on clean energy or the equipment necessary to generate, store or deliver it, such as policies in place that limit certain imports from China and other Southeast Asian countries, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new clean energy projects, NEE and FPL abandoning the development of clean energy projects, a loss of investments in the projects and reduced project returns, any of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
Any reductions or modifications to, or the elimination of, governmental incentives or policies that support clean energy or changes in or the imposition of additional taxes, tariffs, duties or other costs or assessments on clean energy or the equipment necessary to generate, store or deliver it, could result in, among other items, higher equipment costs, scarcity of equipment, the lack of a satisfactory market for the development and/or financing of new clean energy projects, NEE and FPL abandoning the development of clean energy projects, a loss of investments in the projects and reduced project returns, any of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
The FPSC has the authority to disallow recovery by FPL of costs that it considers excessive or imprudently incurred, including those incurred to transition to lower carbon emission technology, and to determine the level of return that FPL is permitted to earn on invested capital.
The FPSC has the authority to disallow recovery by FPL of costs that it considers excessive or imprudently incurred and to determine the level of return that FPL is permitted to earn on invested capital.
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 is a holding company and, as such, has no material operations of its own. Substantially all of NEE's consolidated assets are held by its subsidiaries.
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, make distributions or repay funds to NEE. NEE is a holding company and, as such, has no material operations of its own.
Changes in the nature of the regulation of NEE's and FPL's business through this type or other types of legal activity could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
Changes in the nature of the regulation of NEE's and FPL's business through this type or other types of legal activity, such as the repeal, revocation or reversal of existing laws, regulations or actions, could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
If any of NEE's or FPL's nuclear generation facilities are not operated for any reason through the life of their respective operating licenses or planned license extensions, NEE or FPL may be required to increase depreciation rates, incur impairment charges and accelerate future decommissioning expenditures, any of which could materially adversely affect their business, financial condition, results of operations and prospects.
If any of NEE's or FPL's nuclear generation facilities are not operated for any reason through the life of their respective operating licenses or planned license extensions, NEE or FPL may be required to increase depreciation rates, incur impairment charges and accelerate future decommissioning expenditures, any of which could materially adversely affect its business, financial condition, results of operations and prospects. 33 Table of Content s NEE's and FPL's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, and for other purposes.
Certain other subsidiaries of NEE are utilities subject to the jurisdiction of their regulators and are subject to similar risks. Regulatory decisions that are important to NEE and FPL may be materially adversely affected by political, regulatory, operational and economic factors.
Certain other subsidiaries of NEE, such as subsidiaries of NEET, are utilities subject to the ratemaking jurisdiction of FERC, the PUCT or the OEB and are subject to similar risks. Regulatory decisions that are important to NEE and FPL may be materially adversely affected by political, regulatory, operational and economic factors.
At FPL and other businesses of NEE where cost recovery is available, recovery of costs to restore service, to repair damaged facilities or for other actions to address severe weather is or may be subject to regulatory approval, and any determination by the regulator not to permit timely and full recovery of the costs incurred could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
At FPL and other businesses of NEE where cost recovery is available, recovery of costs to restore service, to repair damaged facilities or for other actions to address severe weather is or may be subject to regulatory approval, and any determination by the regulator not to permit timely and full recovery of the costs incurred could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. 28 Table of Content s Changes in weather can also affect the production of electricity at power generation facilities, including, but not limited to, NEER's wind and solar facilities.
NEE's inability or failure to manage properly or hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures, based on factors that are either within, or wholly or partially outside of, NEE's control, may materially adversely affect NEE's business, financial condition, results of operations and prospects. 27 Table of Content s Reductions in the liquidity of energy markets may restrict NEE's ability to manage its operational risks, which, in turn, could negatively affect NEE's business, financial condition, results of operations and prospects.
NEE's inability or failure to manage properly or hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures, based on factors that are either within, or wholly or partially outside of, NEE's control, may materially adversely affect NEE's business, financial condition, results of operations and prospects.
In addition, in the event of a subsidiary's liquidation or reorganization, NEE's right to participate in a distribution of assets is subject to the prior claims of the subsidiary's creditors. The dividend-paying ability of some of the subsidiaries is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements.
In addition, in the event of a subsidiary's liquidation or reorganization, NEE's right to participate as an equity holder in a distribution of assets is subject to the prior claims of the subsidiary's creditors. 35 Table of Content s The ability of some of the subsidiaries to pay dividends or make certain other payments is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements.
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 and FPL operate in a highly regulated industry that requires the continuous functioning of sophisticated information technology systems and network infrastructure.
NEE and FPL are highly dependent on sensitive and complex information technology systems, and any failure or breach of those systems, or implementation challenges, could have a material adverse effect on their business, financial condition, results of operations and prospects.
If a defaulting counterparty is in poor financial condition, NEE and FPL may not be able to recover damages for any contract breach. 28 Table of Content s 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 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.
Despite NEE's and FPL's implementation of security measures, all of their technology systems are vulnerable to disability, failures or unauthorized access. If NEE's or FPL's information technology systems were to fail or be breached, sensitive confidential and other data could be compromised and NEE and FPL could be unable to fulfill critical business functions.
If NEE's or FPL's information technology systems were to fail or be breached, sensitive, confidential and other data could be compromised and NEE and FPL could be unable to fulfill critical business functions.
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 business, financial condition, results of operations and prospects could be materially adversely affected.
If planned outages last longer than anticipated or if there are unplanned outages, NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected.
If any of these factors materialize, NEER may not be able to recover all of its increased supply costs, which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.
If any of these factors materialize, costs to supply services may exceed revenues generated or be below expected return levels, which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.
A decline in the market value of the assets held in the decommissioning funds due to poor investment performance or other factors may increase the funding requirements for these obligations.
A decline in the market value of the assets held in the decommissioning funds due to poor investment performance or other factors may increase the funding requirements for these obligations. Any increase in funding requirements may have a material adverse effect on NEE's and FPL's business, financial condition, liquidity, results of operations and prospects.
Personnel costs may also increase due to inflationary or competitive pressures on payroll and benefits costs and revised terms of collective bargaining agreements with union employees. These consequences could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
Personnel costs may also increase due to inflationary or competitive pressures on payroll and benefits costs and revised terms of collective bargaining agreements with union employees.
NEE guarantees many of the obligations of its consolidated subsidiaries, other than FPL, through guarantee agreements with NEECH. These guarantees may require NEE to provide substantial funds to its subsidiaries or their creditors or counterparties at a time when NEE is in need of liquidity to meet its own financial obligations.
These guarantees may require NEE to provide substantial funds to its subsidiaries or their creditors or counterparties at a time when NEE is in need of liquidity to meet its own financial obligations. Funding such guarantees may materially adversely affect NEE's ability to meet its financial obligations or to pay dividends.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeDepartment of Energy’s Cybersecurity Capability Maturity Model standard. Certain functions within NEE, including FPL, are required to comply with certain regulatory standards that are designed to protect against cybersecurity incidents, including the NERC Critical Infrastructure Protection standards, as well as the NRC cybersecurity protection standards.
Biggest changeCertain functions within NEE, including FPL, are required to comply with certain regulatory standards that are designed to protect against cybersecurity incidents, including the NERC Critical Infrastructure Protection standards, as well as the NRC cybersecurity protection standards.
NEE, including FPL, conducts periodic desktop exercises and an annual cybersecurity drill with the participation from time to time of local, state and U.S. federal agencies to test its capability of dealing with a simulated cyberattack.
NEE, including FPL, conducts periodic tabletop exercises and an annual cybersecurity drill with the participation from time to time of local, state and U.S. federal agencies to test its capability of dealing with a simulated cyberattack.
Given geopolitical events, NEE, including FPL, continues to take steps to defend against cybersecurity threats to its critical infrastructure, including communications with personnel to ensure heightened awareness of increased cybersecurity threats worldwide.
Given geopolitical events, NEE, including FPL, continues to take steps to defend against cybersecurity threats to its critical infrastructure, including communications and training with personnel to ensure heightened awareness of increased cybersecurity threats worldwide.
NEE, including FPL, also participates in industry forums and various trade groups, as well as in NERC activities, to learn and apply these incident preparedness learnings to its cybersecurity policies and procedures. NEE, including FPL, uses third parties to periodically assess the extent to which its cybersecurity risk management protocols align with the U.S.
NEE, including FPL, also participates in industry forums and various trade groups, as well as in NERC activities, to learn and apply these incident preparedness learnings to its cybersecurity policies and procedures. 36 Table of Content s NEE, including FPL, uses third parties to periodically assess the extent to which its cybersecurity risk management protocols align with the U.S.
Although there have been no cybersecurity incidents or threats with a material impact on NEE’s nor FPL’s business strategy, results of operations, or financial condition, NEE's or FPL's information technology systems could fail or be breached, and such systems could be inoperable, 34 Table of Content s causing NEE and FPL to be unable to fulfill critical business operations.
Although there have been no cybersecurity incidents or threats with a material impact on NEE’s nor FPL’s business strategy, results of operations, or financial condition, NEE's or FPL's information technology systems could fail or be breached, and such systems could be inoperable, causing NEE and FPL to be unable to fulfill critical business operations.
Added
Department of Energy’s Cybersecurity Capability Maturity Model standard or to the U.S. National Institute of Standards and Technology's Cybersecurity Framework for Protecting Critical Infrastructure.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed4 unchanged
Biggest changeAdditionally, the majority of NEER's generation facilities, pipeline facilities and transmission lines are located on land under easement, rights-of-way or leased from owners of private property or governmental entities. Se e Note 7 – FPL and – NEER.
Biggest changeAdditionally, the majority of NEER's generation facilities, pipeline facilities and transmission lines are located on land under easement, rights-of-way or leased from owners of private property or governmental entities. Se e Note 7 – FPL and – NEER. 37 Table of Content s

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed2 unchanged
Biggest changeInformation regarding purchases made by NEE of its common stock during the three months ended December 31, 2024 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) 10/1/24 – 10/31/24 — $ — — 180,000,000 11/1/24 – 11/30/24 4,053 $ 76.35 — 180,000,000 12/1/24 – 12/31/24 — $ — — 180,000,000 Total 4,053 $ 76.35 — ______________________ (a) Includes 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. 2021 Long Term Incentive Plan.
Biggest changeInformation regarding purchases made by NEE of its common stock during the three months ended December 31, 2025 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) 10/1/25 – 10/31/25 — $ — — 180,000,000 11/1/25 – 11/30/25 7,036 $ 83.88 — 180,000,000 12/1/25 – 12/31/25 1,224 $ 81.65 — 180,000,000 Total 8,260 $ 83.55 — ______________________ (a) Includes 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.
(b) In May 2017, NEE's Board of Directors authorized repurchases of up to 45 million shares of common stock (180 million shares after giving effect to the four-for-one stock split of NEE common stock effective October 26, 2020) over an unspecified period. Item 6. Reserved 36 Table of Content s
(b) In May 2017, NEE's Board of Directors authorized repurchases of up to 45 million shares of common stock (180 million shares after giving effect to the four-for-one stock split of NEE common stock effective October 26, 2020) over an unspecified period. Item 6. Reserved 38 Table of Content s
Item 5. Market for Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Common Stock Data. All of FPL's common stock is owned by NEE. NEE's common stock is traded on the New York Stock Exchange under the symbol "NEE." As of January 31, 2025, there were 13,160 holders of record of NEE's common stock.
Item 5. Market for Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Common Stock Data. All of FPL's common stock is owned by NEE. NEE's common stock is traded on the New York Stock Exchange under the symbol "NEE." As of January 31, 2026, there were 12,314 holders of record of NEE's common stock.
In February 2025, NEE announced that it would increase its quarterly dividend on its common stock from $0.515 per share to $0.5665 per share. 35 Table of Content s Issuer Purchases of Equity Securities.
In February 2026, NEE announced that it would increase its quarterly dividend on its common stock from $0.5665 per share to $0.6232 per share. Issuer Purchases of Equity Securities.
Added
Amended and Restated 2021 Long Term Incentive Plan or the NextEra Energy, Inc. Amended and Restated 2011 Long Term Incentive Plan.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

111 edited+20 added−16 removed110 unchanged
Biggest changeDuring 2023 and 2024, the changes in the fair value of NEE’s consolidated subsidiaries’ energy contract derivative instruments were as follows: Hedges on Owned Assets Trading Non- Qualifying FPL Cost Recovery Clauses NEE Total (millions) Fair value of contracts outstanding at December 31, 2022 $ 1,177 $ (3,921) $ 16 $ (2,728) Reclassification to realized at settlement of contracts (369) 154 (9) (224) Value of contracts acquired 6 95 — 101 Net option premium purchases (issuances) 183 17 — 200 Changes in fair value excluding reclassification to realized 340 2,178 5 2,523 Fair value of contracts outstanding at December 31, 2023 1,337 (1,477) 12 (128) Reclassification to realized at settlement of contracts (373) 190 (24) (207) Value of contracts acquired 2 24 — 26 Net option premium purchases (issuances) (2) 23 — 21 Changes in fair value excluding reclassification to realized 380 (284) 50 146 Fair value of contracts outstanding at December 31, 2024 1,344 (1,524) 38 (142) Net margin cash collateral paid (received) (475) Total mark-to-market energy contract net assets (liabilities) at December 31, 2024 $ 1,344 $ (1,524) $ 38 $ (617) NEE’s total mark-to-market energy contract net assets (liabilities) at December 31, 2024 shown above are included on the consolidated balance sheets as follows: December 31, 2024 (millions) Current derivative assets $ 734 Noncurrent derivative assets 1,391 Current derivative liabilities (960) Noncurrent derivative liabilities (1,782) NEE's total mark-to-market energy contract net liabilities $ (617) 53 Table of Content s The sources of fair value estimates and maturity of energy contract derivative instruments at December 31, 2024 were as follows: Maturity 2025 2026 2027 2028 2029 Thereafter Total (millions) Trading: Quoted prices in active markets for identical assets $ (239) $ 14 $ 5 $ 66 $ 45 $ 33 $ (76) Significant other observable inputs 448 257 185 54 25 (12) 957 Significant unobservable inputs 145 24 4 2 9 279 463 Total 354 295 194 122 79 300 1,344 Owned Assets – Non-Qualifying: Quoted prices in active markets for identical assets (72) (48) (21) 3 3 6 (129) Significant other observable inputs (363) (313) (236) (118) (86) (169) (1,285) Significant unobservable inputs (22) (35) (42) (6) 13 (18) (110) Total (457) (396) (299) (121) (70) (181) (1,524) Owned Assets – FPL Cost Recovery Clauses: Quoted prices in active markets for identical assets — — — — — — — Significant other observable inputs 4 — — — — — 4 Significant unobservable inputs 27 6 1 — — — 34 Total 31 6 1 — — — 38 Total sources of fair value $ (72) $ (95) $ (104) $ 1 $ 9 $ 119 $ (142) With respect to commodities, NEE’s Exposure Management Committee (EMC), which is comprised of certain members of senior management, and NEE's chief executive officer are responsible for the overall approval of market risk management policies and the delegation of approval and authorization levels.
Biggest changeSee Critical Accounting Estimates – Accounting for Derivatives and Hedging Activities and Note 3. 55 Table of Content s During 2024 and 2025, the changes in the fair value of NEE’s consolidated subsidiaries’ energy contract derivative instruments were as follows: Hedges on Owned Assets Trading Non- Qualifying FPL Cost Recovery Clauses NEE Total (millions) Fair value of contracts outstanding as of December 31, 2023 $ 1,337 $ (1,477) $ 12 $ (128) Reclassification to realized at settlement of contracts (373) 190 (24) (207) Value of contracts acquired 2 24 — 26 Net option premium purchases (issuances) (2) 23 — 21 Changes in fair value excluding reclassification to realized 380 (284) 50 146 Fair value of contracts outstanding as of December 31, 2024 1,344 (1,524) 38 (142) Reclassification to realized at settlement of contracts (766) 516 35 (215) Value of contracts acquired 46 (7) — 39 Net option premium purchases (issuances) 29 20 — 49 Changes in fair value excluding reclassification to realized 680 (209) (49) 422 Fair value of contracts outstanding as of December 31, 2025 1,333 (1,204) 24 153 Net margin cash collateral paid (received) (86) Total mark-to-market energy contract net assets (liabilities) as of December 31, 2025 $ 1,333 $ (1,204) $ 24 $ 67 NEE’s total mark-to-market energy contract net assets (liabilities) as of December 31, 2025 shown above are included on the consolidated balance sheets as follows: December 31, 2025 (millions) Current derivative assets $ 935 Noncurrent derivative assets 1,780 Current derivative liabilities (767) Noncurrent derivative liabilities (1,881) NEE's total mark-to-market energy contract net assets $ 67 56 Table of Content s The sources of fair value estimates and maturity of energy contract derivative instruments as of December 31, 2025 were as follows: Maturity 2026 2027 2028 2029 2030 Thereafter Total (millions) Trading: Quoted prices in active markets for identical assets $ (74) $ (32) $ 15 $ (18) $ 17 $ 3 $ (89) Significant other observable inputs 425 222 66 41 5 73 832 Significant unobservable inputs 165 28 46 45 62 244 590 Total 516 218 127 68 84 320 1,333 Owned Assets – Non-Qualifying: Quoted prices in active markets for identical assets (59) (35) (7) 13 8 1 (79) Significant other observable inputs (299) (237) (131) (115) (47) (356) (1,185) Significant unobservable inputs (32) (75) (21) 14 18 156 60 Total (390) (347) (159) (88) (21) (199) (1,204) Owned Assets – FPL Cost Recovery Clauses: Quoted prices in active markets for identical assets — — — — — — — Significant other observable inputs (7) (1) — — — — (8) Significant unobservable inputs 31 1 — — — — 32 Total 24 — — — — — 24 Total sources of fair value $ 150 $ (129) $ (32) $ (20) $ 63 $ 121 $ 153 With respect to commodities, NEE’s Exposure Management Committee (EMC), which is comprised of certain members of senior management, and NEE's chief executive officer are responsible for the overall approval of market risk management policies and the delegation of approval and authorization levels.
In NEE’s non-rate regulated operations, predominantly NextEra Energy Resources, essentially all changes in the derivatives’ fair value for power purchases and sales, fuel sales and trading activities are recognized on a net basis in operating revenues and the equity method investees’ related activity is recognized in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income.
In NEE’s non-rate regulated operations, predominantly NextEra Energy Resources, essentially all changes in the derivatives’ fair value for power purchases and sales, fuel sales and trading activities are recognized on a net basis in operating revenues and the equity method investees’ related activity is recognized in equity in losses of equity method investees in NEE’s consolidated statements of income.
Investments that are other than temporarily impaired are written down to their estimated fair value and cannot subsequently be written back up for increases in estimated fair value. Impairment losses are recorded in equity in earnings (losses) of equity method investees in NEE’s consolidated statements of income. See Note 4 – Nonrecurring Fair Value Measurements.
Investments that are other than temporarily impaired are written down to their estimated fair value and cannot subsequently be written back up for increases in estimated fair value. Impairment losses are recorded in equity in losses of equity method investees in NEE’s consolidated statements of income. See Note 4 – Nonrecurring Fair Value Measurements.
It is anticipated that these requirements will be satisfied through a combination of cash flows from operations, short- and long-term borrowings, the issuance of short- and long-term debt (see Note 13) and, from time to time, equity securities, proceeds from differential membership investors , sales of renewable energy tax credits (see Note 1 – Income Taxes) and sales of ownership interests in assets/businesses (see Note 1 – Disposal of Businesses/Assets) , consistent with NEE’s and FPL’s objective of maintaining, on a long-term basis, a capital structure that will support a strong investment grade credit rating.
It is anticipated that these requirements will be satisfied through a combination of cash flows from operations, short- and long-term borrowings, the issuance of short- and long-term debt (see Note 13) and, from time to time, equity securities, proceeds from differential membership investors , sales of clean energy tax credits (see Note 1 – Income Taxes) and sales of ownership interests in assets/businesses (see Note 1 – Disposal of Businesses) , consistent with NEE’s and FPL’s objective of maintaining, on a long-term basis, a capital structure that will support a strong investment grade credit rating.
For interest rate and foreign currency derivative instruments, all changes in the derivatives' fair value are recognized in interest expense and the equity method investees' related activity is recognized in equity in earnings (losses) of equity method investees in NEE's consolidated statements of income.
For interest rate and foreign currency derivative instruments, all changes in the derivatives' fair value are recognized in interest expense and the equity method investees' related activity is recognized in equity in losses of equity method investees in NEE's consolidated statements of income.
Securities that may be issued under the registration statement include, depending on the registrant, senior debt securities, subordinated debt securities, junior subordinated debentures, first mortgage bonds, common stock, preferred stock, depositary shares, stock purchase contracts, stock purchase units, warrants and guarantees related to certain of those securities. 46 Table of Content s Credit Ratings NEE’s liquidity, ability to access credit and capital markets, cost of borrowings and collateral posting requirements under certain agreements is dependent on its and its subsidiaries credit ratings.
Securities that may be issued under the registration statement include, depending on the registrant, senior debt securities, subordinated debt securities, junior subordinated debentures, first mortgage bonds, common stock, preferred stock, depositary shares, stock purchase contracts, stock purchase units, warrants and guarantees related to certain of those securities. 48 Table of Content s Credit Ratings NEE’s liquidity, ability to access credit and capital markets, cost of borrowings and collateral posting requirements under certain agreements is dependent on its and its subsidiaries credit ratings.
In order to earn a targeted regulatory ROE, subject to limitations associated with the 2021 rate agreement, reserve amortization is calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses.
In order to earn a targeted regulatory ROE, subject to limitations associated with the 2021 rate agreement, reserve amortization was 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.
NEE manages counterparty credit risk for its subsidiaries with energy marketing and trading operations through established policies, including counterparty credit limits, and in some cases credit enhancements, such as cash prepayments, letters of credit, cash and other collateral and guarantees. 55 Table of Content s Credit risk is also managed through the use of master netting agreements.
NEE manages counterparty credit risk for its subsidiaries with energy marketing and trading operations through established policies, including counterparty credit limits, and in some cases credit enhancements, such as cash prepayments, letters of credit, cash and other collateral and guarantees. 58 Table of Content s Credit risk is also managed through the use of master netting agreements.
Such revenues also include a return on investment allowed to be recovered through the cost recovery clauses on certain assets, primarily related to certain solar, environmental projects, storm protection plan investments and the unamortized balance of the regulatory asset associated with FPL's acquisition of certain generation facilities. See Item 1.
Such revenues also include a return on investment allowed to be recovered through the cost recovery clauses on certain assets, primarily related to certain solar, environmental projects, storm protection plan investments and the unamortized balance of the regulatory asset associated with FPL's acquisition of a generation facility. See Item 1.
The purpose of the program is not to cause XPLR’s common units to be delisted from the New York Stock Exchange or to cause the common units to be deregistered with the SEC. As of December 31, 2024, the dollar value of units that may yet be purchased by NEE under this program was $114 million.
The purpose of the program is not to cause XPLR’s common units to be delisted from the New York Stock Exchange or to cause the common units to be deregistered with the SEC. As of December 31, 2025, the dollar value of units that may yet be purchased by NEE under this program was $114 million.
(b) See Note 4 – Nonrecurring Fair Value Measurements for a discussion of impairment charges related to the investment in XPLR in 2024 and 2023. (c) For 2023, approximately $300 million of gains are included in FPL's net income; the balance is included in NEER.
(b) See Note 4 – Nonrecurring Fair Value Measurements for a discussion of impairment charges related to the investment in XPLR in 2025, 2024 and 2023. (c) For 2023, approximately $300 million of gains are included in FPL's net income; the remaining balance is included in NEER.
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.
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 was reversed so as not to exceed the targeted regulatory ROE.
For FPL, a corresponding adjustment would be made to the related regulatory asset or liability accounts based on current regulatory treatment, and for NEE’s non-rate regulated operations, a corresponding amount would be recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE's consolidated statements of income.
For FPL, a corresponding adjustment would be made to the related regulatory asset or liability accounts based on current regulatory treatment, and for NEE’s non-rate regulated operations, a corresponding amount would be recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE's consolidated statements of income. See Note 4.
The historical stock performance of NEE's common stock shown in the performance graph below is not necessarily indicative of future stock price performance. 37 Table of Content s Adjusted Earnings NEE prepares its financial statements under GAAP.
The historical stock performance of NEE's common stock shown in the performance graph below is not necessarily indicative of future stock price performance. 39 Table of Content s Adjusted Earnings NEE prepares its financial statements under GAAP.
The use of reserve amortization is permitted by the 2021 rate agreement. See Item 1. Business – FPL – FPL Regulation – FPL Electric Rate Regulation – Base Rates – Base Rates Effective January 2022 through December 2025 for additional information on the 2021 rate agreement.
The use of reserve amortization was permitted by the 2021 rate agreement. See Item 1. Business – FPL – FPL Regulation – FPL Electric Rate Regulation – Base Rates – Base Rates Effective January 2022 through December 2025 for additional information on the 2021 rate agreement.
New Investments Results from new investments in 2024 increased primarily due to higher earnings related to new wind and solar generation and battery storage facilities that entered service during or after 2023.
New Investments Results from new investments in 2025 increased primarily due to higher earnings related to new wind and solar generation and battery storage facilities that entered service during or after 2024.
The following table illustrates the effect on net periodic pension income of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant: Increase (Decrease) in 2024 Net Periodic Pension Income Change in Assumption NEE FPL (millions) Expected long-term rate of return 0.5% $ 26 $ 16 Discount rate (0.5)% $ 1 $ 1 Salary increase 0.5% $ (2) $ (1) NEE also utilizes actuarial assumptions about mortality to help estimate obligations of the pension plan.
The following table illustrates the effect on net periodic pension income of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant: Increase (Decrease) in 2025 Net Periodic Pension Income Change in Assumption NEE FPL (millions) Expected long-term rate of return 0.5% $ 26 $ 15 Discount rate (0.5)% $ 1 $ 1 Salary increase 0.5% $ (2) $ (1) NEE also utilizes actuarial assumptions about mortality to help estimate obligations of the pension plan.
FPL’s syndicated revolving credit facilities are also available to support the purchase of $1,663 million of pollution control, solid waste disposal and industrial development revenue bonds in the event they are tendered by individual bondholders and not remarketed prior to maturity as well as the repayment of approximately $1,979 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity.
FPL’s syndicated revolving credit facilities are also available to support the purchase of $1,566 million of pollution control, solid waste disposal and industrial development revenue bonds in the event they are tendered by individual bondholders and not remarketed prior to maturity as well as the repayment of approximately $1,975 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity.
The most recent studies, filed in 2020, reflect, among other things, the expiration dates of the operating licenses for FPL’s nuclear units at the time of the studies.
The most recent studies, filed in 2025, reflect, among other things, the expiration dates of the operating licenses for FPL’s nuclear units at the time of the studies.
Because each assessment is based on the facts and circumstances associated with each long-lived asset, the effects of changes in assumptions cannot be generalized. 50 Table of Content s Assumptions and Accounting Approach An impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset.
Because each assessment is based on the facts and circumstances associated with each long-lived asset, the effects of changes in assumptions cannot be generalized. Assumptions and Accounting Approach An impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset.
At December 31, 2024, 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 December 31, 2024) plus contract settlement net payables, net of collateral posted for obligations under these guarantees totaled approximately $1.6 billion.
As of December 31, 2025, 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 as of December 31, 2025) plus contract settlement net payables, net of collateral posted for obligations under these guarantees totaled approximately $1.6 billion.
NEE's primary capital requirements are for expanding and enhancing FPL's electric system and generation facilities to continue to provide reliable service to meet customer electricity demands and for funding NEER's investments in independent power and other projects. See Note 15 – Commitments for estimated capital expenditures in 2025 through 2029.
NEE's primary capital requirements are for expanding and enhancing FPL's electric system and generation facilities to continue to provide reliable service to meet customer electricity demands and for funding NEER's investments in independent power and other projects. See Note 15 – Commitments for estimated capital expenditures in 2026 through 2030.
At December 31, 2024, no cash was deposited with the mortgage trustee for these purposes. 47 Table of Content s In September 2006, NEE and NEECH executed a Replacement Capital Covenant (as amended, September 2006 RCC) in connection with NEECH's offering of $350 million principal amount of Series B Enhanced Junior Subordinated Debentures due 2066 (Series B junior subordinated debentures).
As of December 31, 2025, no cash was deposited with the mortgage trustee for these purposes. 49 Table of Content s In September 2006, NEE and NEECH executed a Replacement Capital Covenant (as amended, September 2006 RCC) in connection with NEECH's offering of $350 million principal amount of Series B Enhanced Junior Subordinated Debentures due 2066 (Series B junior subordinated debentures).
The comparison of the results of operations for the years ended December 31, 2023 and 2022 are included in Management's Discussion in NEE's and FPL's Annual Report on Form 10-K for the year ended December 31, 2023. NEE's effective income tax rate for 2024 and 2023 was approximately 6% and 14%, respectively.
The comparison of the results of operations for the years ended December 31, 2024 and 2023 are included in Management's Discussion in NEE's and FPL's Annual Report on Form 10-K for the year ended December 31, 2024. NEE's effective income tax rate for 2025 and 2024 was approximately (18)% and 6%, respectively.
At December 31, 2024, no retained earnings were restricted by these provisions of the mortgage and, in light of FPL's current financial condition and level of earnings, management does not expect that planned financing activities or dividends would be affected by these limitations.
As of December 31, 2025, no retained earnings were restricted by these provisions of the mortgage and, in light of FPL's current financial condition and level of earnings, management does not expect that planned financing activities or dividends would be affected by these limitations.
NEE estimates the fair value of interest rate and foreign currency 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 48 Table of Content s derivative agreements.
NEE estimates the fair value of interest rate and foreign currency 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 derivative agreements.
These funds are used for, among other things, working capital (see Note 1 – Storm Funds, Storm Reserves and Storm Cost Recovery ), capital expenditures (see Note 15 – Commitments), investments in or acquisitions of assets and businesses (see Note 6), payment of maturing debt and related derivative obligations (see Note 13 and Note 3) and, from time to time, redemption or repurchase of outstanding debt or equity securities.
These funds are used for, among other things, working capital, capital expenditures (see Note 15 – Commitments), investments in or acquisitions of assets and businesses (see Note 6), payment of maturing debt and related derivative obligations (see Note 13 and Note 3) and, from time to time, redemption or repurchase of outstanding debt or equity securities.
Those assumptions for the years ended December 31, 2024, 2023 and 2022 include: 2024 2023 2022 Discount rate 4.88 % 5.05 % 2.87 % Salary increase 4.90 % 4.90 % 4.90 % Expected long-term rate of return, net of investment management fees 8.00 % 8.00 % 7.35 % Weighted-average interest crediting rate 3.89 % 3.82 % 3.79 % In developing these assumptions, NEE evaluated input, including other qualitative and quantitative factors, from its actuaries and consultants, as well as information available in the marketplace.
Those assumptions for the years ended December 31, 2025, 2024 and 2023 include: 2025 2024 2023 Discount rate 5.58 % 4.88 % 5.05 % Salary increase 4.90 % 4.90 % 4.90 % Expected long-term rate of return, net of investment management fees 8.00 % 8.00 % 8.00 % Weighted-average interest crediting rate 3.88 % 3.89 % 3.82 % In developing these assumptions, NEE evaluated input, including other qualitative and quantitative factors, from its actuaries and consultants, as well as information available in the marketplace.
Periodically, NEE is required to update these estimates and projections which can affect the annual expense amounts recognized, the liabilities recorded and the annual funding requirements for nuclear decommissioning costs. For example, an increase of 0.25% in the assumed escalation rates for nuclear decommissioning costs would increase NEE’s AROs at December 31, 2024 by approximately $208 million.
Periodically, NEE is required to update these estimates and projections which can affect the annual expense amounts recognized, the liabilities recorded and the annual funding requirements for nuclear decommissioning costs. For example, an increase of 0.25% in the assumed escalation rates for nuclear decommissioning costs would increase NEE’s AROs as of December 31, 2025 by approximately $179 million.
(b) Included in noncurrent regulatory liabilities on NEE’s and FPL’s consolidated balance sheets, except for $1,373 million and $1,021 million which are related to interim removal costs and are included in noncurrent regulatory assets as of December 31, 2024 and 2023, respectively. See Note 1 – Rate Regulation.
(b) Included in noncurrent regulatory liabilities on NEE’s and FPL’s consolidated balance sheets, except for $2,064 million and $1,373 million which are related to interim removal costs and are included in noncurrent regulatory assets as of December 31, 2025 and 2024, respectively. See Note 1 – Rate Regulation.
Taking into consideration offsetting unmarked non-derivative positions, such as physical inventory, the trading VaR figures were approximately $6 million and $1 million at December 31, 2024 and 2023, respectively. (b) Non-qualifying hedges are employed to reduce the market risk exposure to physical assets or contracts which are not marked to market.
Taking into consideration offsetting unmarked non-derivative positions, such as physical inventory, the trading VaR figures were approximately $5 million and $6 million as of December 31, 2025 and 2024, respectively. (b) Non-qualifying hedges are employed to reduce the market risk exposure to physical assets or contracts which are not marked to market.
The following table provides a summary of capital investments for 2024 , 2023 and 2022 .
The following table provides a summary of capital investments for 2025 , 2024 and 2023 .
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 revenue and costs not recoverable from retail customers. In 2024 and 2023, FPL recorded reserve amortization of approximately $328 million and $227 million, respectively.
The drivers of FPL's net income not reflected in the reserve amortization calculation typically included wholesale and transmission service revenues and expenses, cost recovery clause revenues and expenses, AFUDC – equity and revenue and costs not recoverable from retail customers. In 2025 and 2024, FPL recorded reserve amortization of approximately $593 million and $328 million, respectively.
RESULTS OF OPERATIONS Net income attributable to NEE for 2024 was $6.95 billion compared to $7.31 billion in 2023. In 2024, net income attributable to NEE decreased primarily due to lower results at NEER and FPL, partly offset by higher results at Corporate and Other.
RESULTS OF OPERATIONS Net income attributable to NEE for 2025 was $6.84 billion compared to $6.95 billion in 2024. In 2025, net income attributable to NEE decreased primarily due to lower results at Corporate and Other, partly offset by higher results at FPL and NEER.
NEER’s portion of the ultimate cost of decommissioning its nuclear plants, including costs associated with spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approxima tely $9.8 billion, or $2.2 billion ex pressed in 2024 dollars.
NEER’s portion of the ultimate cost of decommissioning its nuclear plants, including costs associated with spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approxima tely $11.4 billion, or $2.3 billion ex pressed in 2025 dollars.
NEE and its subsidiaries require funds to support and grow their businesses. These funds are primarily provided by cash flows from operations, borrowings or issuances of short- and long-term debt and, from time to time, issuances of equity securities, proceeds from differential membership investors, and sales of tax credits and ownership interests in assets/businesses. See Liquidity and Capital Resources.
These funds are primarily provided by cash flows from operations, borrowings or issuances of short- and long-term debt and, from time to time, issuances of equity securities, proceeds from differential membership investors, and sales of tax credits and ownership interests in assets/businesses. See Liquidity and Capital Resources.
See Note 3. 2024 Summary Net income attributable to NEE for 2024 was lower than 2023 by $364 million, or $0.23 per share, assuming dilution, due to lower results at NEER and FPL, partly offset by higher results at Corporate and Other.
See Note 3. 2025 Summary Net income attributable to NEE for 2025 was lower than 2024 by $111 million, or $0.07 per share, assuming dilution, due to lower results at Corporate and Other, partly offset by higher results at FPL and NEER.
The liabilities are being accreted using the interest method through the date decommissioning or dismantlement activities are expected to be complete. At December 31, 2024 and 2023 , the AROs for decommissioning of NEER’s nuclear plants approximate d $646 million and $ 607 million, respectively.
The liabilities are being accreted using the interest method through the date decommissioning or dismantlement activities are expected to be complete. As of December 31, 2025 and 2024 , the AROs for decommissioning of NEER’s nuclear plants approximate d $688 million and $ 646 million, respectively.
At December 31, 2024, subsidiaries of NEE also had approximately $5.6 billion of standby letters of credit and approximately $1.6 billion of surety bonds to support certain of the commercial activities discussed above. FPL's and NEECH's credit facilities are available to support substantially all of the standby letters of credit.
As of December 31, 2025, subsidiaries of NEE also had approximately $7.1 billion of standby letters of credit and approximately $1.6 billion of surety bonds to support certain of the commercial activities discussed above. FPL's and NEECH's credit facilities are available to support substantially all of the standby letters of credit.
Years Ended December 31, 2024 2023 2022 (millions) Net gains (losses) associated with non-qualifying hedge activity (a) $ 666 $ 1,497 $ (696) Differential membership interests-related – NEER $ (5) $ (49) $ (87) XPLR investment gains, net – NEER (b) $ (852) $ (963) $ 186 Gain on disposal of a business (c) $ — $ 306 $ — Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds and OTTI, net – NEER $ 74 $ 116 $ (324) Impairment charges related to investment in Mountain Valley Pipeline – NEER (d) $ — $ (38) $ (674) ______________________ (a) For 2024, 2023 and 2022, approximately $36 million of losses, $1,729 million of gains and $1,257 million of losses, respectively, are included in NEER's net income; the balance is included in Corporate and Other.
Years Ended December 31, 2025 2024 2023 (millions) Net gains (losses) associated with non-qualifying hedge activity (a) $ (272) $ 666 $ 1,497 Differential membership interests-related – NEER $ — $ (5) $ (49) XPLR investment gains, net – NEER (b) $ (656) $ (852) $ (963) Gain on disposal of a business (c) $ — $ — $ 306 Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds and OTTI, net – NEER $ 80 $ 74 $ 116 Impairment charges related to investment in Mountain Valley Pipeline – NEER $ — $ — $ (38) ______________________ (a) For 2025, 2024 and 2023, approximately $28 million of gains, $36 million of losses and $1,729 million of gains, respectively, are included in NEER's net income; the remaining balance is included in Corporate and Other.
FPL’s portion of the future cost of decommissioning its four nuclear units, including spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approximately $9.6 billion, or $2.5 billion expressed in 2024 dollars.
FPL’s portion of the future cost of decommissioning its four nuclear units, including spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approximately $10.2 billion, or $2.7 billion expressed in 2025 dollars.
During the year ended December 31, 2024, renewable energy tax credits increased by approximately $477 million reflecting growth in NEER's business. See Note 1 – Income Taxes for a discussion of renewable energy tax credits, Note 5 and Note 16.
During the year ended December 31, 2025, clean energy tax credits increased by approximately $585 million reflecting growth in NEER's business. See Note 1 – Income Taxes for a discussion of clean energy tax credits, Note 5 and Note 16.
Income Taxes NEER's effective income tax rate for 2024 and 2023 was approximately (165)% and 7%, respectively, and is primarily based on the composition of pretax income in 2024 and 2023 as well as the impact of renewable energy tax credits.
Income Taxes NEER's effective income tax rate for 2025 and 2024 was approximately (343)% and (165)%, respectively, and is primarily based on the composition of pretax income in 2025 and 2024 as well as the impact of clean energy tax credits.
Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE’s net liabilities would increase by approxim ately $3,475 million ($1,153 million f or FPL) at December 31, 2024. Equity Price Risk NEE and FPL are exposed to risk resulting from changes in prices for equity securities.
Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE’s net liabilities would increase by approxim ately $4,392 million ($1,351 million f or FPL) as of December 31, 2025. Equity Price Risk NEE and FPL are exposed to risk resulting from changes in prices for equity securities.
NEER also provides full energy and capacity requirements services, engages in energy-related commodity marketing and trading activities, owns, develops, constructs and operates rate-regulated transmission facilities and transmission lines and invests in natural gas, natural gas liquids and oil production assets.
NEER also owns, develops, constructs and operates regulated electric and gas transmission assets. In addition, NEER provides full energy and capacity requirements services, engages in energy-related commodity marketing and trading activities and participates in natural gas, natural gas liquids and oil production.
The portion of previously unrecognized actuarial gains and losses and prior service costs or credits that are estimated to be allocable to FPL as net periodic (income) cost in future periods and that otherwise would be recorded in accumulated other comprehensive income are classified as regulatory assets and liabilities at NEE in accordance with regulatory treatment. 49 Table of Content s Net periodic pension income is calculated using a number of actuarial assumptions.
The portion of previously unrecognized actuarial gains and losses and prior service costs or credits that are estimated to be allocable to FPL as net periodic (income) cost in future periods and that otherwise would be recorded in accumulated other comprehensive income are classified as regulatory assets and liabilities at NEE in accordance with regulatory treatment.
Net Income (Loss) Attributable to NEE Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution Years Ended December 31, Years Ended December 31, 2024 2023 2022 2024 2023 2022 (millions) FPL $ 4,543 $ 4,552 $ 3,701 $ 2.21 $ 2.24 $ 1.87 NEER (a) 2,299 3,558 285 1.12 1.75 0.14 Corporate and Other 104 (800) 161 0.04 (0.39) 0.09 NEE $ 6,946 $ 7,310 $ 4,147 $ 3.37 $ 3.60 $ 2.10 ______________________ (a) NEER’s results reflect an allocation of interest expense from NEECH to NextEra Energy Resources based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.
Net Income (Loss) Attributable to NEE Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution Years Ended December 31, Years Ended December 31, 2025 2024 2023 2025 2024 2023 (millions) FPL $ 5,012 $ 4,543 $ 4,552 $ 2.42 $ 2.21 $ 2.24 NEER (a) 2,975 2,299 3,558 1.44 1.12 1.75 Corporate and Other (1,152) 104 (800) (0.56) 0.04 (0.39) NEE $ 6,835 $ 6,946 $ 7,310 $ 3.30 $ 3.37 $ 3.60 ______________________ (a) NEER’s results reflect an allocation of interest expense from NEECH to NextEra Energy Resources based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.
Results from projects, pipelines and rate-regulated transmission facilities and transmission lines are included in new investments during the first twelve months of operation or ownership. Project results, including repowered wind projects, and pipeline results are included in existing clean energy and rate-regulated transmission facilities and transmission lines are included in NEET beginning with the thirteenth month of operation or ownership.
Results from projects and regulated gas transmission assets are included in new investments during the first twelve months of operation or ownership. Project results, including repowered wind projects, and regulated gas transmission assets results are included in existing clean energy beginning with the thirteenth month of operation or ownership.
For example, NEE’s nuclear decommissioning reserve funds include marketable equity securities carried at their market value of approximately $6,164 million and $5,290 million ($4,219 million and $3,536 million for FPL) at December 31, 2024 and 2023, respectively. NEE's and FPL’s investment strategy for equity securities in their nuclear decommissioning reserve funds emphasizes marketable securities which are broadly diversified.
For example, NEE’s nuclear decommissioning reserve funds include marketable equity securities carried at their market value of approximately $7,007 million and $6,164 million ($4,840 million and $4,219 million for FPL) as of December 31, 2025 and 2024, respectively. NEE's and FPL’s investment strategy for equity securities in their nuclear decommissioning reserve funds emphasizes marketable securities which are broadly diversified.
Retail base revenues increased approximately $272 million during the year ended December 31, 2024 primarily related to an increase of 1.9% in the average number of customer accounts and new retail base rates through its SoBRA mechanism under the 2021 rate agreement.
Retail base revenues increased approximately $222 million during the year ended December 31, 2025 primarily related to an increase of 1.7% in the average number of customer accounts and new retail base rates through its Solar Base Rate Adjustment mechanism under the 2021 rate agreement.
At December 31, 2024, these guarantees totaled approximately $1.8 billion and support, among other things, cash management activities, including those related to debt service and operations and maintenance service agreements, as well as other specific project financing requirements.
As of December 31, 2025, these guarantees totaled approximately $3.0 billion and support, among other things, cash management activities, including those related to debt service and operations and maintenance service agreements, as well as other specific project financing requirements.
(c) Included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets, except for $3 million and $14 million which are related to other generation plant dismantlement and are included in noncurrent regulatory assets as of December 31, 2024 and 2023, respectively. See Note 1 – Rate Regulation. (d) Represents total amount accrued for ratemaking purposes.
(c) Included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets, except for $1 million and $3 million which are related to other generation plant dismantlement and are included in noncurrent regulatory assets as of December 31, 2025 and 2024, respectively. See Note 1 – Rate Regulation.
At December 31, 2024, coverage for the 12 months ended December 31, 2024 would have been approximately 7.5 times the annual interest requirements and approximately 3.3 times the aggregate principal requirements.
As of December 31, 2025, coverage for the 12 months ended December 31, 2025 would have been approximately 7.5 times the annual interest requirements and approximately 3.6 times the aggregate principal requirements.
At December 31, 2024, FPL could have issued in excess of $36 billion of additional first mortgage bonds based on the unfunded property additions and retired first mortgage bonds.
As of December 31, 2025, FPL could have issued in excess of $38 billion of additional first mortgage bonds based on the unfunded property additions and retired first mortgage bonds.
In addition, NEE, through NEER, uses derivatives to optimize the value of its power generation and natural gas and oil production assets and engages in power and fuel marketing and trading activities to take advantage of expected future favorable price movements. See Critical Accounting Policies and Estimates – Accounting for Derivatives and Hedging Activities and Note 3.
In addition, NEE, through NEER, uses derivatives to optimize the value of its power generation and natural gas and oil production assets and engages in power and fuel marketing and trading activities to take advantage of expected future favorable price movements.
At December 31, 2024, NEE had interest rate contracts with a net notional amount of approximately $35.2 billion to manage exposure to the variability of cash flows primarily associated with expected future and outstanding debt issuances at NEECH and NEER.
As of December 31, 2025, NEE had interest rate contracts with a net notional amount of approximately $47.3 billion to manage exposure to the variability of cash flows primarily associated with expected future and outstanding debt issuances at NEECH and NEER. See Note 3.
NEER – NEER records liabilities for the present value of its expected nuclear plant decommissioning and its expected wind and solar facilities dismantlement costs which are determined using various internal and external data and applying a probability percentage to a variety of scenarios regarding the life of the plant and facilities, as well as the timing of decommissioning or dismantlement.
(d) Represents total amount accrued for ratemaking purposes. 54 Table of Content s NEER – NEER records liabilities for the present value of its expected nuclear plant decommissioning and its expected wind and solar facilities dismantlement costs which are determined using various internal and external data and applying a probability percentage to a variety of scenarios regarding the life of the plant and facilities, as well as the timing of decommissioning or dismantlement.
At December 31, 2024, NEE's credit risk exposure associated with its energy marketing and trading operations, taking into account collateral and contractual netting rights, totaled approximately $2.6 billion ($64 million for FPL), of which approximately 88% (99% for FPL) was with companies that have investment grade credit ratings. See Note 3.
As of December 31, 2025, NEE's credit risk exposure associated with its energy marketing and trading operations, taking into account collateral and contractual netting rights, totaled approximately $3.4 billion ($113 million for FPL), of which approximately 88% (98% for FPL) was with companies that have investment grade credit ratings. See Note 3.
The table below provides the components of FPL's and NEECH's net available liquidity at December 31, 2024.
The table below provides the components of FPL's and NEECH's net available liquidity as of December 31, 2025.
Corporate and Other's results increased $904 million during 2024 primarily due to favorable after-tax impacts of approximately $934 million, as compared to the prior year, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments used to manage interest rate and foreign currency exchange rate risk associated primarily with outstanding and expected future debt issuances and borrowings (see Note 3).
Corporate and Other's results decreased $1,256 million during 2025 primarily due to unfavorable after-tax impacts of approximately $1,002 million, as compared to the prior year, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments used to manage interest rate and foreign currency exchange rate risk associated primarily with outstanding and expected future debt issuances and borrowings (see Note 3) as well as higher average debt balances.
At December 31, 2024, NEE had an approximately 52.6% noncontrolling interest in XPLR, primarily through its limited partner interest in XPLR OpCo. 42 Table of Content s Cash Flows NEE's sources and uses of cash for 2024, 2023 and 2022 were as follows: Years Ended December 31, 2024 2023 2022 (millions) Sources of cash: Cash flows from operating activities $ 13,260 $ 11,301 $ 8,262 Issuances of long-term debt, including premiums and discounts 24,769 13,857 13,856 Proceeds from differential membership investors 2,257 2,745 4,158 Proceeds from the sale of Florida City Gas business — 924 — Sale of independent power and other investments of NEER 2,659 1,883 1,564 Issuances of common stock/equity units 48 4,514 1,514 Net increase in commercial paper and other short-term debt — 2,308 957 Cash swept from related parties – net — 1,213 240 Other sources – net — — 89 Total sources of cash 42,993 38,745 30,640 Uses of cash: Capital expenditures, independent power and other investments and nuclear fuel purchases (24,729) (25,113) (19,283) Retirements of long-term debt (10,113) (7,978) (4,525) Net decrease in commercial paper and other short-term debt (3,018) — — Payments to differential membership investors (740) (75) (179) Repayments of swept cash to related parties – net (1,371) — — Dividends on common stock (4,235) (3,782) (3,352) Other uses – net (791) (1,814) (1,169) Total uses of cash (44,997) (38,762) (28,508) Effects of currency translation on cash, cash equivalents and restricted cash (14) (4) (7) Net increase (decrease) in cash, cash equivalents and restricted cash $ (2,018) $ (21) $ 2,125 For significant financing activity that occurred subsequent to December 31, 2024, see Note 13.
As of December 31, 2025, NEE had an approximately 52.5% noncontrolling interest in XPLR, primarily through its limited partner interest in XPLR OpCo. 44 Table of Content s Cash Flows NEE's sources and uses of cash for 2025, 2024 and 2023 were as follows: Years Ended December 31, 2025 2024 2023 (millions) Sources of cash: Cash flows from operating activities $ 12,485 $ 13,260 $ 11,301 Issuances of long-term debt, including premiums and discounts 23,394 24,769 13,857 Proceeds from differential membership investors 3,276 2,257 2,745 Proceeds from the sale of Florida City Gas business — — 924 Sale of independent power and other investments of NEER 1,115 2,659 1,883 Issuances of common stock/equity units 2,038 48 4,514 Net increase in commercial paper and other short-term debt 676 — 2,308 Cash swept from related parties – net — — 1,213 Other sources – net 118 — — Total sources of cash 43,102 42,993 38,745 Uses of cash: Capital expenditures, independent power and other investments and nuclear fuel purchases (24,606) (24,729) (25,113) Retirements of long-term debt (10,347) (10,113) (7,978) Net decrease in commercial paper and other short-term debt — (3,018) — Payments to differential membership investors (516) (740) (75) Repayments of cash swept to related parties – net (131) (1,371) — Dividends on common stock (4,680) (4,235) (3,782) Other uses – net (1,223) (791) (1,814) Total uses of cash (41,503) (44,997) (38,762) Effects of currency translation on cash, cash equivalents and restricted cash 5 (14) (4) Net increase (decrease) in cash, cash equivalents and restricted cash $ 1,604 $ (2,018) $ (21) For significant financing activity that occurred subsequent to December 31, 2025, see Note 13.
Increase (Decrease) From Prior Period Year Ended December 31, 2024 (millions) New investments (a) $ 983 Existing clean energy (a) 31 Customer supply (b) (230) NEET (a) 10 Other, including interest expense, corporate general and administrative expenses and other investment income (395) Change in non-qualifying hedge activity (c) (1,765) Change in unrealized gains/losses on equity securities held in nuclear decommissioning funds and OTTI, net (c) (42) XPLR investment gains, net (c) 111 Impairment charges related to investment in Mountain Valley Pipeline (c) 38 Change in net income less net loss attributable to noncontrolling interests $ (1,259) ______________________ (a) Reflects after-tax project contributions, including the net effect of deferred income taxes and other benefits associated with renewable energy tax credits for wind, solar and storage projects, as applicable (see Note 1 – Income Taxes and – Noncontrolling Interests and Note 5), but excludes allocation of interest expense and corporate general and administrative expenses except for an allocated credit support charge related to guarantees issued to conduct business activities.
Increase (Decrease) From Prior Period Year Ended December 31, 2025 (millions) New investments (a) $ 967 Existing clean energy (a) (81) Customer supply (b) 89 NEET 39 Other, including financing costs, corporate general and administrative expenses, asset recycling, state taxes and other investment income (604) Change in non-qualifying hedge activity (c) 64 Change in unrealized gains/losses on equity securities held in nuclear decommissioning funds and OTTI, net (c) 6 XPLR investment gains, net (c) 196 Change in net income less net loss attributable to noncontrolling interests $ 676 ______________________ (a) Reflects after-tax project contributions, including the net effect of deferred income taxes and other benefits associated with clean energy tax credits for wind, solar and battery storage projects, as applicable (see Note 1 – Income Taxes and – Noncontrolling Interests and Note 5), but excludes allocation of interest expense and corporate general and administrative expenses except for an allocated credit support charge related to guarantees issued to conduct business activities.
Interest rate contracts are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by financing agreements. 54 Table of Content s The following are estimates of the fair value of NEE's and FPL's financial instruments that are exposed to interest rate risk: December 31, 2024 December 31, 2023 Carrying Amount Estimated Fair Value (a) Carrying Amount Estimated Fair Value (a) (millions) NEE: Special use funds $ 2,294 $ 2,294 $ 2,222 $ 2,222 Other investments, primarily debt securities $ 2,007 $ 2,007 $ 1,802 $ 1,802 Long-term debt, including current portion $ 80,446 $ 76,428 $ 68,306 $ 64,103 Interest rate contracts – net unrealized gains (losses) $ 293 $ 293 $ (249) $ (249) FPL: Special use funds $ 1,741 $ 1,741 $ 1,658 $ 1,658 Long-term debt, including current portion $ 26,745 $ 24,718 $ 25,274 $ 23,430 ______________________ (a) See Note 3 and Note 4.
Interest rate contracts are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by financing agreements. 57 Table of Content s The following are estimates of the fair value of NEE's and FPL's financial instruments that are exposed to interest rate risk: December 31, 2025 December 31, 2024 Carrying Amount Estimated Fair Value (a) Carrying Amount Estimated Fair Value (a) (millions) NEE: Special use funds $ 2,453 $ 2,453 $ 2,294 $ 2,294 Other investments, primarily debt securities $ 2,280 $ 2,280 $ 2,007 $ 2,007 Long-term debt, including current portion $ 93,056 $ 91,614 $ 80,446 $ 76,428 Interest rate contracts – net unrealized gains (losses) $ (252) $ (252) $ 293 $ 293 FPL: Special use funds $ 1,885 $ 1,885 $ 1,741 $ 1,741 Long-term debt, including current portion $ 28,682 $ 27,354 $ 26,745 $ 24,718 ______________________ (a) See Note 3 and Note 4.
Depreciation and Amortization Expense The major components of FPL’s depreciation and amortization expense are as follows: Years Ended December 31, 2024 2023 (millions) Reserve amortization recorded under the 2021 rate agreement $ (328) $ (227) Other depreciation and amortization recovered under base rates (excluding reserve amortization) and other 2,667 2,468 Depreciation and amortization primarily recovered under cost recovery clauses and storm-recovery cost amortization 488 1,548 Total $ 2,827 $ 3,789 Depreciation expense decreased $962 million during 2024 primarily reflecting lower amortization of deferred storm costs, primarily associated with Hurricanes Ian and Nicole as discussed above, of approximately $1,089 million and lower reserve amortization, partly offset by increased depreciation related to higher plant in service balances.
Depreciation and Amortization Expense The major components of FPL’s depreciation and amortization expense are as follows: Years Ended December 31, 2025 2024 (millions) Reserve amortization recorded under the 2021 rate agreement $ (593) $ (328) Other depreciation and amortization recovered under base rates (excluding reserve amortization) and other 2,850 2,667 Depreciation and amortization primarily recovered under cost recovery clauses and storm-recovery cost amortization 1,521 488 Total $ 3,778 $ 2,827 Depreciation and amortization expense increased $951 million during 2025 primarily reflecting higher amortization of deferred storm costs, primarily associated with Hurricanes Debby, Helene and Milton, as discussed above, of approximately $1,090 million and increased depreciation related to higher plant in service balances, partly offset by the impact of reserve amortization.
NEER’s net income less net loss attributable to noncontrolling interests for 2024 and 2023 was $2,299 million and $3,558 million, respectively, resulting in a decrease in 2024 of $1,259 million. The primary drivers, on an after-tax basis, of the change are in the following table.
NEER’s net income less net loss attributable to noncontrolling interests for 2025 and 2024 was $2,975 million and $2,299 million, respectively, resulting in an increase in 2025 of $676 million. The primary drivers, on an after-tax basis, of the change are in the following table.
Commodity Price Risk 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.
Management has established risk management policies to monitor and manage such market risks, as well as credit risks. Commodity Price Risk 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.
At December 31, 2024, a hypothetical 10% decrease in the prices quoted on stock exchanges would result in an approximately $577 million ($388 million for FPL) reduction in fair value.
As of December 31, 2025, a hypothetical 10% decrease in the prices quoted on stock exchanges would result in an approximately $657 million ($446 million for FPL) reduction in fair value.
The change in 2024 primarily reflects a 2024 impairment charge of approximately $0.8 billion ($0.6 billion after tax) compared to 41 Table of Content s a 2023 impairment charge of $1.2 billion ($0.9 billion after tax) related to the investment in XPLR (see Note 4 – Nonrecurring Fair Value Measurements).
The change in 2025 primarily reflects the impact of an impairment charge of approximately $0.7 billion ($0.5 billion after tax) compared to a 2024 impairment charge of $0.8 billion ($0.6 billion after tax) related to the investment in XPLR (see Note 4 – Nonrecurring Fair Value Measurements).
Gains on Disposal of Businesses/Assets – net In 2024, the change in gains on disposal of businesses/assets – net primarily reflect the September 2024 sales of ownership interests in connection with the pipeline joint venture and the renewable assets joint venture. See Note 1 – Disposal of Businesses/Assets.
See Note 1 – Disposal of Businesses for a discussion of gains related to the September 2024 sales of ownership interests in connection with the pipeline joint venture and the renewable assets joint venture.
NEE subsidiaries issue guarantees related to equity contribution agreements and engineering, procurement and construction agreements, associated with the development, construction and financing of certain power generation facilities (see Note 1 – Structured Payables) and a natural gas pipeline project, as well as a natural gas transportation agreement.
As of December 31, 2025, NEE believes that there is no material exposure related to these guarantee arrangements. 46 Table of Content s NEE subsidiaries issue guarantees related to equity contribution agreements and engineering, procurement and construction agreements, associated with the development, construction and financing of certain power generation facilities (see Note 1 – Structured Payables) and a natural gas pipeline project, as well as a natural gas transportation agreement.
Years Ended December 31, 2024 2023 2022 (millions) FPL: Generation: New $ 2,479 $ 3,163 $ 2,079 Existing 967 1,441 1,804 Transmission and distribution 4,425 4,292 4,553 Nuclear fuel 222 98 118 General and other 636 688 581 Other, primarily change in accrued property additions and the exclusion of AFUDC – equity (515) (282) 50 Total 8,214 9,400 9,185 NEER: Wind 4,355 4,793 3,481 Solar (includes solar plus battery storage projects) 7,327 5,448 2,880 Other clean energy 2,213 2,837 1,052 Nuclear (includes nuclear fuel) 344 228 214 Customer supply – natural gas and oil production 1,167 1,575 1,215 Rate-regulated transmission 650 317 431 Other 336 454 372 Total 16,392 15,652 9,645 Corporate and Other 123 61 453 Total capital expenditures, independent power and other investments and nuclear fuel purchases $ 24,729 $ 25,113 $ 19,283 43 Table of Content s Liquidity At December 31, 2024, NEE's total net available liquidity was approximately $18.0 billion.
Years Ended December 31, 2025 2024 2023 (millions) FPL: Generation: New $ 2,915 $ 2,479 $ 3,163 Existing 1,150 967 1,441 Transmission and distribution 4,498 4,425 4,292 Nuclear fuel 216 222 98 General and other 718 636 688 Other, primarily change in accrued property additions and the exclusion of AFUDC – equity (562) (515) (282) Total 8,935 8,214 9,400 NEER: Wind 3,325 4,355 4,793 Solar (includes solar plus battery storage projects) 6,975 7,327 5,448 Other clean energy 3,295 1,686 2,313 Nuclear (includes nuclear fuel) 577 344 228 Customer supply – natural gas and oil production 257 1,167 1,575 Regulated electric and gas transmission 755 1,177 841 Other 485 336 454 Total 15,669 16,392 15,652 Corporate and Other 2 123 61 Total capital expenditures, independent power and other investments and nuclear fuel purchases $ 24,606 $ 24,729 $ 25,113 45 Table of Content s Liquidity As of December 31, 2025, NEE's total net available liquidity was approximately $18.7 billion.
The VaR figures are as follows: Trading (a) Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses (b) Total FPL NEER NEE FPL NEER NEE FPL NEER NEE (millions) December 31, 2023 $ — $ 4 $ 4 $ 2 $ 114 $ 116 $ 2 $ 113 $ 111 December 31, 2024 $ — $ 6 $ 6 $ 3 $ 99 $ 98 $ 3 $ 89 $ 88 Average for the year ended December 31, 2024 $ — $ 4 $ 4 $ 4 $ 100 $ 100 $ 4 $ 100 $ 99 ______________________ (a) The VaR figures for the trading portfolio include positions that are marked to market.
The VaR figures are as follows: Trading (a) Non-Qualifying Hedges and Hedges in FPL Cost Recovery Clauses (b) Total FPL NEE FPL NEE FPL NEE December 31, 2024 $ — $ 6 $ 3 $ 98 $ 3 $ 88 December 31, 2025 $ — $ 14 $ 9 $ 92 $ 9 $ 83 Average for the year ended December 31, 2025 $ — $ 12 $ 10 $ 90 $ 10 $ 89 ______________________ (a) The VaR figures for the trading portfolio include positions that are marked to market.
For the five years ended December 31, 2024, NEE delivered a total shareholder return of approximately 33.2%, compared to the S&P 500’s 97.0% return, the S&P 500 Utilities' 37.7% return and the Dow Jones U.S. Electricity's 40.0% return.
For the five years ended December 31, 2025, NEE delivered a total shareholder return of approximately 18.2%, compared to the S&P 500’s 96.2% return, the S&P 500 Utilities' 59.1% return and the Dow Jones U.S. Electricity's 64.8% return.
The decrease in operating revenues in 2024 was also impacted by a decrease in fuel cost recovery revenues of approximately $526 million primarily as a result of lower fuel and energy prices. In 2024 and 2023, cost recovery clauses contributed approximately $417 million and $369 million, respectively, to FPL’s net income.
The increase in operating revenues in 2025 was partly offset by a decrease in fuel cost recovery revenues of approximately $353 million primarily as a result of lower fuel rates. In 2025 and 2024, cost recovery clauses contributed approximately $497 million and $417 million, respectively, to FPL’s net income.
Nature of Accounting Estimates The calculation of the future cost of retiring long-lived assets, including nuclear decommissioning and plant dismantlement costs, involves estimating the amount and timing of future expenditures and making judgments concerning whether or not such costs are considered a legal obligation.
NEE's AROs relate primarily to decommissioning obligations of FPL's and NEER's nuclear units and to obligations for the dismantlement of certain of NEER's wind and solar facilities. 53 Table of Content s Nature of Accounting Estimates The calculation of the future cost of retiring long-lived assets, including nuclear decommissioning and plant dismantlement costs, involves estimating the amount and timing of future expenditures and making judgments concerning whether or not such costs are considered a legal obligation.
The components of FPL’s decommissioning of nuclear plants, dismantlement of plants and other accrued asset removal costs are as follows: Nuclear Decommissioning Other Generation Plant Dismantlement Interim Removal Costs and Other Total December 31, December 31, December 31, December 31, 2024 2023 2024 2023 2024 2023 2024 2023 (millions) AROs (a) $ 1,959 $ 1,882 $ 331 $ 283 $ 5 $ 5 $ 2,295 $ 2,170 Less capitalized ARO asset net of accumulated depreciation 58 59 82 28 — — 140 87 Accrued asset removal costs (b) 509 480 191 182 (1,375) (1,023) (675) (361) Asset retirement obligation regulatory expense difference (c) 4,936 4,202 (130) (150) — — 4,806 4,052 Accrued decommissioning, dismantlement and other accrued asset removal costs (d) $ 7,346 $ 6,505 $ 310 $ 287 $ (1,370) $ (1,018) $ 6,286 $ 5,774 ______________________ (a) See Note 11.
The components of FPL’s decommissioning of nuclear plants, dismantlement of plants and other accrued asset removal costs are as follows: Nuclear Decommissioning Other Generation Plant Dismantlement Interim Removal Costs and Other Total December 31, December 31, December 31, December 31, 2025 2024 2025 2024 2025 2024 2025 2024 (millions) AROs (a) $ 1,844 $ 1,959 $ 323 $ 331 $ 3 $ 5 $ 2,170 $ 2,295 Less capitalized ARO asset net of accumulated depreciation — 58 80 82 — — 80 140 Accrued asset removal costs (b) 548 509 201 191 (2,066) (1,375) (1,317) (675) Asset retirement obligation regulatory expense difference (c) 5,784 4,936 (112) (130) — — 5,672 4,806 Accrued decommissioning, dismantlement and other accrued asset removal costs (d) $ 8,176 $ 7,346 $ 332 $ 310 $ (2,063) $ (1,370) $ 6,445 $ 6,286 ______________________ (a) See Note 11.
Substantially all of the guarantee arrangements are on behalf of NEE’s consolidated subsidiaries, as discussed in more detail below. See Note 8 regarding guarantees of obligations on behalf of XPLR subsidiaries. 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.
See Note 8 and Note 15 – Commitments regarding guarantees of obligations on behalf of unconsolidated entities. 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 December 31, 2024 and 2023 , the AROs for dismantling certain of NEER’s wind facilities approximate d $329 million and $296 million, respectively, and for dismantling certain of NEER's solar facilities approximated $315 million and $256 million, respectively.
As of December 31, 2025 and 2024 , the AROs for dismantling certain of NEER’s wind facilities approximated $365 million and $329 million, respectively, and for dismantling certain of NEER's solar facilities approximated $316 million and $315 million, respectively.
Management’s Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves more than six million customer accounts in Florida and is one of the largest electric utilities in the U.S., and NEER, which together with affiliated entities is the world's largest generator of renewable energy from the wind and sun based on 2024 MWh produced on a net generation basis, as well as a world leader in battery storage capacity .
Management’s Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves more than six million customer accounts in Florida and is the largest electric utility in the U.S., and NEER, which together with affiliated entities is one of the largest energy infrastructure developers in the U.S.
The increases were partly offset by a decrease of approximately 0.5% in the average usage per retail customer primarily driven by unfavorable weather when compared to the prior year. See Note 1 – Rate Regulation. In December 2024, FPL filed a formal notification with the FPSC indicating its intent to initiate a base rate proceeding. See Item 1.
The increases were partly offset by a decrease of approximately 1.2% in the average usage per retail customer primarily driven by unfavorable weather when compared to the prior year. See Note 1 – Rate Regulation.

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