NEXTERA ENERGY INC

Previous wording

NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves approximately 5.9 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 2023 MWh produced on a net generation basis, as well as a world leader in battery storage. The table below presents net income (loss) attributable to NEE and earnings (loss) per share attributable to NEE, assuming dilution, by reportable segment, FPL and NEER. Corporate and Other is primarily comprised of the operating results of other business activities, as well as other income and expense items, including interest expense, and eliminating entries, and may include the net effect of rounding. See Note 13 for additional segment information. The foll owing discussions should be read in conjunction with the Notes contained hereinand Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2023 Form 10-K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussions, all comparisons are with the corresponding items in the prior year period.

Current wording

NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves approximately 5.9 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 2023 MWh produced on a net generation basis, as well as a world leader in battery storage. The table below presents net income (loss) attributable to NEE and earnings (loss) per share attributable to NEE, assuming dilution, by reportable segment, FPL and NEER. Corporate and Other is primarily comprised of the operating results of other business activities, as well as other income and expense items, including interest expense, and eliminating entries, and may include the net effect of rounding. See Note 13 for additional segment information. The foll owing discussions should be read in conjunction with the Notes contained hereinand Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2023 Form 10-K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussions, all comparisons are with the corresponding items in the prior year periods.

Previous wording

(a) For the three months ended March 31, 2024 and 2023, approximately $74 million and $682 million of gains, respectively, are included in NEER's net income; the balance is included in Corporate and Other. The change in non-qualifying hedge activity is primarily attributable to changes in forward power and natural gas prices, interest rates and foreign currency exchange rates, as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized.

Current wording

(a) For the three months ended June 30, 2024 and 2023, approximately $221 million of losses and $742 million of gains, respectively, and for the six months ended June 30, 2024 and 2023, $147 million of losses and $1,424 million of gains, respectively, are included in NEER's net income; the balance is included in Corporate and Other. The change in non-qualifying hedge activity is primarily attributable to changes in forward power and natural gas prices, interest rates and foreign currency exchange rates, as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized.

Previous wording

Net income attributable to NEE increased by $182 million for the three months ended March 31, 2024 reflecting higher results at FPL and Corporate and Other, partly offset by lower results at NEER.

Current wording

Net income attributable to NEE decreased by $1,173 million for the three months ended June 30, 2024 reflecting lower results at NEER and Corporate and Other, partly offset by higher results at FPL. Net income attributable to NEE decreased by $991 million for the six months ended June 30, 2024 reflecting lower results at NEER, partly offset by higher results at FPL and Corporate and Other.

Previous wording

FPL's increase in net income for the three months ended March 31, 2024 was primarily driven by continued investments in plant in service and other property.

Current wording

FPL's increase in net income for the three and six months ended June 30, 2024 was primarily driven by continued investments in plant in service and other property.

Previous wording

NEER's results decreased for the three months ended March 31, 2024 primarily reflecting less favorable non-qualifying hedge activity compared to 2023, partly offset by higher earnings from new investments.

Current wording

NEER's results decreased for the three and six months ended June 30, 2024 primarily reflecting unfavorable non-qualifying hedge activity compared to 2023 and lower earnings from gas infrastructure, partly offset by higher earnings from new investments and existing clean energy.

Previous wording

Corporate and Other's results increased for the three months ended March 31, 2024 primarily due to favorable non-qualifying hedge activity compared to 2023.

Current wording

Corporate and Other's results decreased for the three months ended June 30, 2024 primarily due to unfavorable non-qualifying hedge activity compared to 2023. Corporate and Other's results increased for the six months ended June 30, 2024 primarily due to favorable non-qualifying hedge activity compared to 2023.

Previous wording

NEE's effective income tax rates for the three months ended March 31, 2024 and 2023 were approximately 11% and 18%, respectively. See Note 4 for a discussion of NEE's and FPL's effective income tax rates.

Current wording

NEE's effective income tax rates for the three months ended June 30, 2024 and 2023 were approximately (5)% and 16%, respectively. NEE's effective income tax rates for the six months ended June 30, 2024 and 2023 were approximately 5% and 17%, respectively. See Note 4 for a discussion of NEE's and FPL's effective income tax rates.

Previous wording

Investments in plant in service and other property grew FPL's average rate base by approximately $6.8 billion for the three months ended March 31, 2024, when compared to the same period in the prior year, reflecting, among other things, solar generation additions and ongoing transmission and distribution additions.

Current wording

Investments in plant in service and other property grew FPL's average rate base by approximately $6.6 billion and $6.7 billion for the three and six months ended June 30, 2024, respectively, when compared to the same periods in the prior year, reflecting, among other things, solar generation additions and ongoing transmission and distribution additions.

Previous wording

The use of reserve amortization is permitted by FPL's 2021 rate agreement. 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 general, the net impact of these income statement line items must be adjusted, in part, by reserve amortization to earn the targeted regulatory ROE. In certain periods, reserve amortization is reversed so as not to exceed the targeted regulatory ROE. The drivers of FPL's net income not reflected in the reserve amortization calculation typically include wholesale and transmission service revenues and expenses, cost recovery clause revenues and expenses, AFUDC – equity and revenue and costs not recoverable from retail customers. During the three months ended March 31, 2024 and 2023, FPL recorded reserve amortization of approximately $572 million and $373 million, respectively. See Depreciation and Amortization Expense below. During both 2024 and 2023, FPL earned an approximately 11.80% regulatory ROE on its retail rate base, based on a trailing thirteen-month average retail rate base as of March 31, 2024 and March 31, 2023.

Current wording

The use of reserve amortization is permitted by FPL's 2021 rate agreement. 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 general, the net impact of these income statement line items must be adjusted, in part, by reserve amortization to earn the targeted regulatory ROE. In certain periods, reserve amortization is reversed so as not to exceed the targeted regulatory ROE. The drivers of FPL's net income not reflected in the reserve amortization calculation typically include wholesale and transmission service revenues and expenses, cost recovery clause revenues and expenses, AFUDC – equity and revenue and costs not recoverable from retail customers. During the three and six months ended June 30, 2024, FPL recorded reserve amortization of approximately $66 million and $637 million, respectively. During the three and six months ended June 30, 2023, FPL recorded reserve amortization of approximately $78 million and $451 million, respectively. See Depreciation and Amortization Expense below. During all periods presented, FPL earned an approximately 11.80% regulatory ROE on its retail rate base, based on a trailing thirteen-month average retail rate base as of June 30, 2024 and June 30, 2023. In July 2024, FPL reduced the targeted regulatory ROE for the full-year 2024 to 11.40%.

Previous wording

FPL implemented an interim storm restoration charge in April 2023 for eligible storm restoration costs of approximately $1.3 billion, primarily related to surcharges for Hurricanes Ian and Nicole which impacted FPL's service area in 2022.

Current wording

FPL completed a twelve-month interim storm restoration charge that began in April 2023 for eligible storm restoration costs of approximately $1.3 billion, primarily related to surcharges for Hurricanes Ian and Nicole which impacted FPL's service area in 2022.

Previous wording

During the three months ended March 31, 2024, operating revenues decreased $85 million primarily reflecting a decrease in fuel revenues of approximately $160 million, partly offset by an increase in storm cost recovery revenues of $110 million primarily associated with Hurricanes Ian and Nicole, as discussed above. The decrease in fuel revenues primarily related to lower fuel and energy prices. Additionally, during the three months ended March 31, 2024, retail base revenues decreased approximately $7 million, primarily related to a decrease of approximately 3.2% in the average usage per retail customer driven by unfavorable weather when compared to the prior year period, partly offset by an increase of 1.7% in the average number of customer accounts.

Current wording

During the three and six months ended June 30, 2024, operating revenues decreased $385 million and $469 million, respectively, primarily reflecting decreases in storm cost recovery revenues of approximately $369 million and $259 million, respectively, primarily associated with the completion of surcharges for Hurricanes Ian and Nicole, as discussed above. Additionally, fuel revenues decreased approximately $114 million and $274 million during the three and six months ended June 30, 2024, respectively, primarily relating to lower fuel prices. The decreases in operating revenues for the three and six months ended June 30, 2024 were partly offset by increases in retail base revenues of approximately $120 million and $113 million, respectively. During the three months ended June 30, 2024, the increase in retail base revenues was primarily related to an increase of approximately 1.9% in the average number of customer accounts and an increase of 1.7% in the average usage per retail customer driven by favorable weather when compared to the prior year period. During the six months ended June 30, 2024, the increase in retail base revenues was primarily related to an increase of approximately 1.8% in the average number of customer accounts, partly offset by a decrease of 0.4% in the average usage per retail customer.

Previous wording

Fuel, purchased power and interchange expense decreased $180 million for the three months ended March 31, 2024 primarily reflecting lower fuel and energy prices.

Current wording

Fuel, purchased power and interchange expense decreased $131 million and $311 million for the three and six months ended June 30, 2024, respectively, primarily reflecting lower fuel prices.

Previous wording

Depreciation and amortization expense decreased $32 million during the three months ended March 31, 2024. The decrease for the three months ended March 31, 2024 primarily reflects the impact of reserve amortization, partly offset by the amortization of deferred storm cost expenses primarily associated with Hurricanes Ian and Nicole, as discussed above. During the three months ended March 31, 2024 and 2023, FPL recorded reserve amortization of approximately $572 million and $373 million, respectively. Reserve amortization, or reversal of such amortization, reflects adjustments to accrued asset removal costs provided under the 2021 rate agreement in order to achieve the targeted regulatory ROE. Reserve amortization is recorded as either an increase or decrease to accrued asset removal costs which is reflected in noncurrent regulatory assets on the condensed consolidated balance sheets. At March 31, 2024, approximately $651 million of reserve amortization remains available under the 2021 rate agreement.

Current wording

Depreciation and amortization expense decreased $290 million and$322 million during the three and six months ended June 30, 2024, respectively. The decrease for the three months ended June 30, 2024 primarily reflects approximately $369 million of lower amortization of deferred storm cost expenses primarily associated with Hurricanes Ian and Nicole, as discussed above, partly offset by increased depreciation related to higher plant in service balances. The decrease for the six months ended June 30, 2024 primarily reflects approximately $259 million of lower amortization of deferred storm cost expenses primarily associated with Hurricanes Ian and Nicole, as discussed above, and the impact of reserve amortization, partly offset by increased depreciation related to higher plant in service balances. During the three months ended June 30, 2024 and 2023, FPL recorded reserve amortization of approximately $66 million and $78 million, respectively. During the six months ended June 30, 2024 and 2023, FPL recorded reserve amortization of approximately $637 million and $451 million, respectively. Reserve amortization, or reversal of such amortization, reflects adjustments to accrued asset removal costs provided under the 2021 rate agreement in order to achieve the targeted regulatory ROE. Reserve amortization is recorded as either an increase or decrease to accrued asset removal costs which is reflected in noncurrent regulatory assets on the condensed consolidated balance sheets. At June 30, 2024, approximately $586 million of reserve amortization remains available under the 2021 rate agreement.

Previous wording

NEER’s results decreased$474 million forthe three months ended March 31, 2024. The primary drivers, on an after-tax basis, of the changes are in the following table.

Current wording

NEER’s results decreased $910 million and $1,384 million for the three and six months ended June 30, 2024, respectively. The primary drivers, on an after-tax basis, of the changes are in the following table.

Previous wording

Results from new investments for the three months ended March 31, 2024 increased primarily due to higher earnings related to new wind and solar generation and battery storage facilities that entered service during or after the three months ended March 31, 2023.

Current wording

Results from new investments for the three and six months ended June 30, 2024 increased primarily due to higher earnings related to new wind and solar generation and battery storage facilities that entered service during or after the three and six months ended June 30, 2023.

Previous wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $51 million of gains for the three months ended March 31, 2024 compared to $1,095 million of gains for the comparable period in 2023), and

Current wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $284 million of losses for the three months ended June 30, 2024 compared to $857 million of gains for the comparable period in 2023), and

Previous wording

•revenues from new investments of $124 million, and

Current wording

•revenues from new investments of $157 million, and

Previous wording

•other net decreases in revenues of $125 million,

Current wording

•other net decreases in revenues of $106 million,

Previous wording

•increases in revenues of $117 million from the customer supply and gas infrastructure businesses.

Current wording

•increases in revenues of $89 million from the customer supply and gas infrastructure businesses, and

Previous wording

Operating expenses – net for the three months ended March 31, 2024 increased $231 million primarily due to increases of $112 million in depreciation and amortization expenses, $81 million in O&M expenses and $19 million in fuel, purchased power and interchange expenses. The increases were primarily associated with growth across the NEER businesses.

Current wording

Operating expenses – net for the three months ended June 30, 2024 increased $351 million primarily due to increases of $213 million in depreciation and amortization, $76 million in O&M expenses and $51 million in fuel, purchased power and interchange expenses. Operating expenses – net for the six months ended June 30, 2024 increased $583 million primarily due to increases of $325 million in depreciation and amortization, $157 million in O&M expenses and $70 million in fuel, purchased power and interchange expenses. The increases for both periods were primarily associated with growth across the NEER businesses as well as higher depletion and higher O&M expenses at the gas infrastructure business.

Previous wording

NEER’s interest expense for the three months ended March 31, 2024 decreased $176 million primarily reflecting approximately $263 million of favorable impacts related to changes in the fair value of interest rate derivative instruments, partly offset by higher average interest rates and higher average debt balances.

Current wording

NEER’s interest expense for the three months ended June 30, 2024 increased $192 million reflecting approximately $88 million of unfavorable impacts related to changes in the fair value of interest rate derivative instruments as well as higher average interest rates and higher average debt balances.

Previous wording

PTCs from wind and solar projects and ITCs from solar, battery storage and certain wind projects are included in NEER’s earnings. PTCs are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes. See Note 4.

Current wording

PTCs from wind and solar projects and ITCs from solar, battery storage and certain wind projects are included in NEER’s earnings. PTCs are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes. NEER's effective income tax rate is primarily based on the composition of pretax income (loss) in the periods presented, which for the three and six months ended June 30, 2024 was primarily impacted by unfavorable non-qualifying hedge activity compared to the prior year periods. The effective tax rate is also impacted by the amount of renewable energy tax credits in the periods presented. During the three and six months ended June 30, 2024, renewable energy tax credits increased by approximately $160 million and $263 million, respectively. See Note 4.

Previous wording

Corporate and Other's results increased $554 million during the three months ended March 31, 2024 primarily due to favorable after-tax impacts of approximately $557 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments.

Current wording

Corporate and Other's results decreased $343 million during the three months ended June 30, 2024 primarily due to unfavorable after-tax impacts of approximately $370 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments. Corporate and Other's results increased $212 million during the six months ended June 30, 2024 primarily due to more favorable after-tax impacts of approximately $187 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments.

Previous wording

NEE and its subsidiaries require funds to support and grow their businesses. These funds are used for, among other things, working capital, capital expenditures (see Note 12 – Commitments), investments in or acquisitions of assets and businesses (see Note 5), payment of maturing debt and related derivative obligations (see Note 9 and Note 2) and, from time to time, redemption or repurchase of outstanding debt or equity securities. 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 9) and, from time to time, equity securities, proceeds from differential membership investors, the sale of renewable energy tax credits (see Note 11 – Income Taxes) and sales of assets to NEP or third parties, 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. NEE, FPL and NEECH rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows. The inabilityof NEE, FPL and NEECH to maintain their current credit ratings could affect their ability to raise short- and long-term capital, their cost of capital and the execution of their respective financing strategies, and could require the posting of additional collateral under certain agreements.

Current wording

NEE and its subsidiaries require funds to support and grow their businesses. These funds are used for, among other things, working capital, capital expenditures (see Note 12 – Commitments), investments in or acquisitions of assets and businesses (see Note 5), payment of maturing debt and related derivative obligations (see Note 9 and Note 2) and, from time to time, redemption or repurchase of outstanding debt or equity securities. 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 9) and, from time to time, equity securities, proceeds from differential membership investors, the sale of renewable energy tax credits (see Note 11 – Income Taxes) and sales of assets to NEP or third parties (see Note 11 – 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. NEE, FPL and NEECH rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows. The inabilityof NEE, FPL and NEECH to maintain their current credit ratings could affect their ability to raise short- and long-term capital, their cost of capital and the execution of their respective financing strategies, and could require the posting of additional collateral under certain agreements.

Previous wording

NEE's sources and uses of cash for the three months ended March 31, 2024 and 2023 were as follows:

Current wording

NEE's sources and uses of cash for the six months ended June 30, 2024 and 2023 were as follows:

Previous wording

The following table provides a summary of capital investments for the three months ended March 31, 2024 and 2023.

Current wording

The following table provides a summary of capital investments for the six months ended June 30, 2024 and 2023.

Previous wording

At March 31, 2024, NEE's total net available liquidity was approximately $10.8 billion. The table below provides the components of FPL's and NEECH's net available liquidity at March 31, 2024.

Current wording

At June 30, 2024, NEE's total net available liquidity was approximately $13.6 billion. The table below provides the components of FPL's and NEECH's net available liquidity at June 30, 2024.

Previous wording

(a) Provide for the funding of loans up to the amount of the credit facility and the issuance of letters of credit up to $3,200 million ($450 million for FPL and $2,750 million for NEECH). The entire amount of the credit facilities is available for general corporate purposes and to provide additional liquidity in the event of a loss to the companies’ or their subsidiaries’ operating facilities (including, in the case of FPL, a transmission and distribution property loss). FPL’s syndicated revolving credit facilities are also available to support the purchase of $1,319 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 $1,812 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity. As of March 31, 2024, approximately $3,664 million of NEECH's syndicated revolving credit facilities expire over the next 12 months.

Current wording

(a) Provide for the funding of loans up to the amount of the credit facility and the issuance of letters of credit up to $3,200 million ($450 million for FPL and $2,750 million for NEECH). The entire amount of the credit facilities is available for general corporate purposes and to provide additional liquidity in the event of a loss to the companies’ or their subsidiaries’ operating facilities (including, in the case of FPL, a transmission and distribution property loss). 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 $1,812 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity. Approximately $575 million of FPL's and $3,422 million of NEECH's syndicated revolving credit facilities expire over the next 12 months.

Previous wording

(b) Only available for the funding of loans. As of March 31, 2024, approximately $550 million of FPL's and $1,250 million of NEECH's bilateral revolving credit facilities expire over the next 12 months.

Current wording

(b) Only available for the funding of loans. Approximately $2,350 million of FPL's and $1,700 million of NEECH's bilateral revolving credit facilities expire over the next 12 months.

Previous wording

(c) Only available for the issuance of letters of credit. As of March 31, 2024, approximately $980 million of the letter of credit facilities expire over the next 12 months.

Current wording

(c) Only available for the issuance of letters of credit. Approximately $1,680 million of the letter of credit facilities expire over the next 12 months.

Previous wording

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 11– Structured Payables) and a natural gas pipeline project under construction, as well as a related natural gas transportation agreement. Commitments associated with these activities are included in the contracts table in Note 12.

Current wording

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 11– Structured Payables) and a natural gas pipeline project, as well as a related natural gas transportation agreement. Commitments associated with these activities are included in the contracts table in Note 12.

Previous wording

In addition, at March 31, 2024, NEE subsidiaries had approximately $5.7 billion in guarantees related to obligations under purchased power and acquisition agreements, nuclear-related activities, payment obligations related to PTCs, support for NEER's retail electricity provider activities, as well as other types of contractual obligations (see Note 12 – Commitments).

Current wording

In addition, at June 30, 2024, NEE subsidiaries had approximately $5.8 billion in guarantees related to obligations under purchased power and acquisition agreements, nuclear-related activities, payment obligations related to PTCs, support for NEER's retail electricity provider activities, as well as other types of contractual obligations (see Note 12 – Commitments).

Previous wording

In some instances, subsidiaries of NEE elect to issue guarantees instead of posting other forms of collateral required under certain financing arrangements, as well as for other project-level cash management activities. At March 31, 2024, these guarantees totaled approximately $1.2 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.

Current wording

In some instances, subsidiaries of NEE elect to issue guarantees instead of posting other forms of collateral required under certain financing arrangements, as well as for other project-level cash management activities. At June 30, 2024, these guarantees totaled approximately $1.1 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.

Previous wording

Subsidiaries of NEE also issue guarantees to support customer supply and proprietary power and gas trading activities, including the buying and selling of wholesale energy commodities. At March 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 March 31, 2024) plus contract settlement net payables, net of collateral posted for obligations under these guarantees, totaled approximately $1.6 billion.

Current wording

Subsidiaries of NEE also issue guarantees to support customer supply and proprietary power and gas trading activities, including the buying and selling of wholesale energy commodities. At June 30, 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 June 30, 2024) plus contract settlement net payables, net of collateral posted for obligations under these guarantees, totaled approximately $1.7 billion.

Previous wording

At March 31, 2024, subsidiaries of NEE also had approximately $5.2 billion of standby letters of credit and approximately $1.7 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.

Current wording

At June 30, 2024, subsidiaries of NEE also had approximately $5.4 billion of standby letters of credit and approximately $2.1 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.

Previous wording

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three months ended March 31, 2024 were as follows:

Current wording

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three and six months ended June 30, 2024 were as follows:

Previous wording

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three months ended March 31, 2023 were as follows:

Current wording

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three and six months ended June 30, 2023 were as follows:

Previous wording

(a) The VaR figures for the trading portfolio include positions that are marked to market. Taking into consideration offsetting unmarked non-derivative positions, such as physical inventory, the trading VaR figures were approximately $0 million and $1 million at March 31, 2024 and December 31, 2023, respectively.

Current wording

(a) The VaR figures for the trading portfolio include positions that are marked to market. Taking into consideration offsetting unmarked non-derivative positions, such as physical inventory, the trading VaR figures were approximately $1 million and $1 million at June 30, 2024 and December 31, 2023, respectively.

Previous wording

At March 31, 2024, NEE had interest rate contracts with a net notional amount of approximately $17.5 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 2.

Current wording

At June 30, 2024, NEE had interest rate contracts with a net notional amount of approximately $22.1 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 2.

Previous wording

Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE's net liabilities would increase by approximately $2,782 million ($1,057 million for FPL) at March 31, 2024.

Current wording

Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE's net liabilities would increase by approximately $3,160 million ($1,170 million for FPL) at June 30, 2024.