XML 37 R20.htm IDEA: XBRL DOCUMENT
v3.24.3

Summary of Significant Accounting and Reporting Policies | 9 Months Ended
--- | ---
Sep. 30, 2024
Accounting Policies [Abstract] |
Summary of Significant Accounting and Reporting Policies | Summary of Significant Accounting and Reporting Policies Rate Regulation – In March 2024, the FPSC issued a supplemental final order regarding FPL's 2021 rate agreement. The order affirmed the FPSC's prior approval of the 2021 rate agreement and is intended to further document, as requested by the Florida Supreme Court, how the evidence presented led to and supports the FPSC's decision to approve FPL's 2021 rate agreement. In April 2024, Florida Rising, Inc., Environmental Confederation of Southwest Florida, Inc. and League of United Latin American Citizens of Florida (collectively, the appellants) submitted a notice of appeal to the Florida Supreme Court regarding the FPSC's supplemental final order. The Florida Supreme Court issued an order granting FPL's motion to expedite the schedule. Oral arguments were held in October 2024, and the appeal remains pending. In April 2024, the FPSC approved FPL’s March 2024 request for a mid-course correction to reduce the 2024 fuel cost recovery factors and refund customers approximately $662 million over eight months effective May 2024. Storm Reserve Deficit – In August 2024 and September 2024, Hurricane Debby and Hurricane Helene, respectively, traveled through the Gulf of Mexico, eventually making landfall in Florida's Big Bend region, causing widespread outages. Although FPL has not finalized its storm restoration costs associated with Hurricanes Debby and Helene, FPL's preliminary estimate of total recoverable storm restoration costs is approximately $0.3 billion. Prior to Hurricane Debby, FPL's storm reserve had a balance of approximately $80 million. At September 30, 2024, the estimated recoverable storm restoration costs exceeded the balance of the storm reserve by approximately $0.2 billion. This deficit has been recorded by FPL as a current regulatory asset on NEE's and FPL's condensed consolidated balance sheets. In October 2024, Hurricane Milton made landfall on the West Coast of Florida and traveled across the peninsula impacting much of FPL's service territory. Although FPL has not finalized its storm restoration costs associated with Hurricane Milton, FPL's preliminary estimate of total recoverable storm restoration costs is approximately $0.8 billion. Pursuant to FPL's 2021 rate agreement, storm restoration costs, plus an additional approximately $150 million to replenish the storm reserve, are recoverable from customers through a surcharge. FPL expects to file a petition in fourth quarter 2024 for a surcharge to be recovered over calendar year 2025 of approximately $1.2 billion. The final storm restoration costs are subject to a prudence review by the FPSC. Restricted Cash – At September 30, 2024 and December 31, 2023, NEE had approximately $311 million ($102 million for FPL) and $730 million ($15 million for FPL), respectively, of restricted cash, which is included in current other assets on NEE's and FPL's condensed consolidated balance sheets. Restricted cash is primarily related to debt service payments and margin cash collateral requirements at NEER and bond proceeds held for construction at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $138 million is netted against derivative assets and $207 million is netted against derivative liabilities at September 30, 2024 and $194 million is netted against derivative assets and $815 million is netted against derivative liabilities at December 31, 2023. See Note 2. Disposal of Businesses – In September 2024, subsidiaries of NextEra Energy Resources sold 100% ownership interests in certain oil and gas shale formations and, as part of a joint venture (pipeline joint venture), sold an ownership interest, representing an approximately 15% economic interest, in three natural gas pipeline facilities located in the southern U.S. for total cash proceeds of approximately $101 million (subject to post-closing adjustments). A NextEra Energy Resources subsidiary has operated and will continue to operate two of the pipeline facilities included in the sale. In connection with the sale, a gain of approximately $120 million ($77 million after tax) was recorded in NEE's condensed consolidated statements of income for the three and nine months ended September 30, 2024 and is included in gains on disposal of businesses/assets – net. Total assets of approximately $2,211 million, primarily property, plant and equipment and investment in equity method investees, and total liabilities of approximately $1,833 million, primarily long-term debt, were removed from NEE's balance sheet as a result of the transaction. NEE’s remaining interest, an approximately 85% economic interest, in the pipeline joint venture is a noncontrolling interest based on the governance structure of the joint venture and is reflected as an equity method investment of approximately $396 million at September 30, 2024. The fair value of NEE’s retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. In September 2024, subsidiaries of NextEra Energy Resources sold an ownership interest, representing an approximately 65% economic interest, as part of a joint venture (renewable assets joint venture), consisting of a portfolio of five wind generation facilities and three solar generation facilities located in geographically diverse locations throughout the U.S. with a total generating capacity of 1,634 MW, for cash proceeds of approximately $900 million. A NextEra Energy Resources subsidiary will continue to operate the facilities included in the sale. In connection with the sale, a gain of approximately $103 million ($76 million after tax) was recorded in NEE's condensed consolidated statements of income for the three and nine months ended September 30, 2024 and is included in gains on disposal of businesses/assets – net. Total assets of approximately $2,520 million, primarily property, plant and equipment and total noncontrolling interests of approximately $844 million were removed from NEE's balance sheet as a result of the transaction. NEE’s remaining interest, an approximately 35% economic interest, in the renewable assets joint venture is a noncontrolling interest based on the governance structure of the joint venture and is reflected as an equity method investment of approximately $831 million at September 30, 2024. NEE expects to receive a distribution of approximately $390 million upon the projects in the renewable assets joint venture obtaining financing in the fourth quarter of 2024. The fair value of NEE’s retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. In June 2023, subsidiaries of NextEra Energy Resources sold to a NEP subsidiary their 100% ownership interests in five wind generation facilities and three solar generation facilities located in geographically diverse locations throughout the U.S. with a total generating capacity of 688 MW for cash proceeds of approximately $566 million, plus working capital of $32 million. A NextEra Energy Resources subsidiary continues to operate the facilities included in the sale. Property Plant and Equipment – Property, plant and equipment consists of the following:
|  | NEE |  | FPL
|  | September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023
|  | (millions)
Electric plant in service and other property |  | $ | 147,386 |  |  | $ | 139,049 |  |  | $ | 85,206 |  |  | $ | 79,801 |
Nuclear fuel |  | 1,750 |  |  | 1,564 |  |  | 1,163 |  |  | 1,125 |
Construction work in progress |  | 20,595 |  |  | 18,652 |  |  | 7,878 |  |  | 8,311 |
Property, plant and equipment, gross |  | 169,731 |  |  | 159,265 |  |  | 94,247 |  |  | 89,237 |
Accumulated depreciation and amortization |  | (35,422) |  |  | (33,489) |  |  | (19,512) |  |  | (18,629) |
Property, plant and equipment – net |  | $ | 134,309 |  |  | $ | 125,776 |  |  | $ | 74,735 |  |  | $ | 70,608 |
During the three months ended September 30, 2024 and 2023, FPL recorded AFUDC of approximately $69 million and $49 million, respectively, including AFUDC – equity of approximately $49 million and $40 million, respectively. During the nine months ended September 30, 2024 and 2023, FPL recorded AFUDC of approximately $180 million and $123 million, respectively, including AFUDC – equity of $139 million and $100 million, respectively. During the three months ended September 30, 2024 and 2023, NEER capitalized interest on construction projects of approximately $134 million and $88 million, respectively. During the nine months ended September 30, 2024 and 2023, NEER capitalized interest on construction projects of approximately $344 million and $220 million, respectively. Structured Payables – At September 30, 2024 and December 31, 2023, NEE's outstanding obligations under its structured payables program were approximately $1.6 billion and $4.7 billion, respectively, substantially all of which is included in accounts payable on NEE's condensed consolidated balance sheets. Income Taxes – For taxable years beginning after 2022, renewable energy tax credits generated during the taxable year can be transferred to an unrelated purchaser for cash and are accounted for under Accounting Standards Codification 740 – Income Taxes. Proceeds resulting from the sales of renewable energy tax credits for the nine months ended September 30, 2024 of approximately $768 million are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE's condensed consolidated statements of cash flows. Noncontrolling Interests – At September 30, 2024 and December 31, 2023, approximately $8,043 million and $8,857 million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relates to differential membership interests. For the three months ended September 30, 2024 and 2023, NEE recorded earnings of approximately $281 million and $212 million, respectively, and for the nine months ended September 30, 2024 and 2023 approximately $986 million and $820 million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests on NEE's condensed consolidated statements of income.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration