NEXTERA ENERGY INC

Previous 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.

Current wording

(a) For the three months ended September 30, 2024 and 2023, approximately $191 million of gains and $127 million of losses, respectively, and for the nine months ended September 30, 2024 and 2023, $44 million and $1,297 million of gains, respectively, are included in NEER's net income (loss); 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 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.

Current wording

Net income attributable to NEE increased by $633 million for the three months ended September 30, 2024 reflecting higher results at NEER and FPL, partly offset by lower results at Corporate and Other. Net income attributable to NEE decreased by $357 million for the nine months ended September 30, 2024 reflecting lower results at Corporate and Other, partly offset by higher results at FPL and NEER.

Previous 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.

Current wording

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

Previous 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.

Current wording

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

Previous 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.

Current wording

NEE's effective income tax rates for the three months ended September 30, 2024 and 2023 were approximately 0% and (5)%, respectively. NEE's effective income tax rates for the nine months ended September 30, 2024 and 2023 were approximately 3% and 14%, 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 $6.6 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.

Current wording

Investments in plant in service and other property grew FPL's average rate base by approximately $6.0 billion and $6.4 billion for the three and nine months ended September 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 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%.

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 nine months ended September 30, 2024, FPL recorded the reversal of reserve amortization of approximately $231 million and reserve amortization of $406 million, respectively. During the three and nine months ended September 30, 2023, FPL recorded the reversal of reserve amortization of approximately $245 million and reserve amortization of $206 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 September 30, 2024 and September 30, 2023. In July 2024, FPL reduced the targeted regulatory ROE for the full-year 2024 to 11.40%.

Previous wording

In March 2024, the FPSC issued a supplemental final order regarding FPL’s 2021 rate agreement. In April 2024, a notice of appeal of the supplemental final order was filed. See Note 11– Rate Regulation.

Current wording

In March 2024, the FPSC issued a supplemental final order regarding FPL’s 2021 rate agreement. An April 2024 appeal of the order filed with the Florida Supreme Court by certain intervenors remains pending. See Note 11– Rate Regulation. In September 2024, the license renewals for Turkey Point Unit No. 3 and Turkey Point Unit No. 4 were approved, extending the operating licenses to 2053 and 2054, respectively. Subsequently, an appeal of the decision dismissing all of the proposed contentions against the subsequent license renewal was filed with the NRC and that appeal is pending.

Previous 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.

Current wording

During the three and nine months ended September 30, 2024, operating revenues decreased $536 million and $1,006 million, respectively, primarily reflecting decreases in storm cost recovery revenues of approximately $486 million and $745 million, respectively, primarily associated with the completion of surcharges for Hurricanes Ian and Nicole, as discussed above. Additionally, fuel revenues decreased approximately $110 million and $384 million during the three and nine months ended September 30, 2024, respectively, primarily relating to lower fuel prices. The decreases in operating revenues for the three and nine months ended September 30, 2024 were partly offset by increases in retail base revenues of approximately $71 million and $184 million, respectively. During the three and nine months ended September 30, 2024, the increase in retail base revenues was primarily related to an increase of approximately 2.1% and 1.9%, respectively, in the average number of customer accounts, partly offset by a decrease of 1.1% and 0.6%, respectively, in the average usage per retail customer driven by unfavorable weather when compared to the prior year periods.

Previous 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.

Current wording

Fuel, purchased power and interchange expense decreased $131 million and $442 million for the three and nine months ended September 30, 2024, respectively, primarily reflecting lower fuel prices.

Previous 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.

Current wording

Depreciation and amortization expense decreased $450 million and$772 million during the three and nine months ended September 30, 2024, respectively. The decrease for the three months ended September 30, 2024 primarily reflects approximately $486 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 nine months ended September 30, 2024 primarily reflects approximately $745 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 September 30, 2024 and 2023, FPL recorded the reversal of reserve amortization of approximately $231 million and $245 million, respectively. During the nine months ended September 30, 2024 and 2023, FPL recorded reserve amortization of approximately $406 million and $206 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 September 30, 2024, approximately $817 million of reserve amortization remains available under the 2021 rate agreement.

Previous 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.

Current wording

NEER’s results increased $1,453 million and $69 million for the three and nine months ended September 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 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.

Current wording

Results from new investments for the three and nine months ended September 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 nine months ended September 30, 2023.

Previous 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

Current wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $574 million of gains for the three months ended September 30, 2024 compared to $346 million of losses for the comparable period in 2023), and

Previous wording

•revenues from new investments of $262 million,

Current wording

•revenues from new investments of $148 million,

Previous wording

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

Current wording

•net decreases in revenues of $194 million from the customer supply and gas infrastructure businesses.

Previous wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $217 million of losses for the six months ended June 30, 2024 compared to $1,953 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 $341 million of gains for the nine months ended September 30, 2024 compared to $1,607 million of gains for the comparable period in 2023), and

Previous wording

•other net decreases in revenues of $32 million primarily relating to the customer supply and gas infrastructure businesses,

Current wording

•net decreases in revenues of $105 million from the customer supply and gas infrastructure businesses,

Previous wording

•revenues from new investments of $157 million, and

Current wording

•revenues from new investments of $338 million, and

Previous wording

•higher revenues from existing clean energy assets of $87 million primarily due the absence of a 2023 refueling outage at the Seabrook nuclear facility.

Current wording

•higher revenues from existing clean energy assets of $185 million primarily due the absence of 2023 refueling outages at the Seabrook and Point Beach nuclear facilities.

Previous 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.

Current wording

Operating expenses – net for the three months ended September 30, 2024 increased $245 million primarily due to increases of $140 million in depreciation and amortization, $70 million in O&M expenses and $28 million in fuel, purchased power and interchange expenses. Operating expenses – net for the nine months ended September 30, 2024 increased $828 million primarily due to increases of $465 million in depreciation and amortization, $227 million in O&M expenses and $99 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 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.

Current wording

NEER’s interest expense for the three months ended September 30, 2024 increased $507 million reflecting approximately $329 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. NEER’s interest expense for the nine months ended September 30, 2024 increased $522 million reflecting approximately $294 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

For the three months ended June 30, 2024, changes in the fair value of equity securities in NEER's nuclear decommissioning funds related to unfavorable market conditions in 2024 compared to the prior year period.

Current wording

For the three months ended September 30, 2024, changes in the fair value of equity securities in NEER's nuclear decommissioning funds related to favorable market conditions in 2024 compared to the prior year period.

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. 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.

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, as well as the amount of renewable energy tax credits in the periods presented. During the three and nine months ended September 30, 2024, renewable energy tax credits increased by approximately $172 million and $435 million, respectively. See Note 4.

Previous 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.

Current wording

Corporate and Other's results decreased $930 million during the three months ended September 30, 2024 primarily due to unfavorable after-tax impacts of approximately $930 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 decreased $718 million during the nine months ended September 30, 2024 primarily due to unfavorable after-tax impacts of approximately $743 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 (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.

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 ownership interests in assets/businesses 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 six months ended June 30, 2024 and 2023 were as follows:

Current wording

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

Previous wording

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

Current wording

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

Previous 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.

Current wording

At September 30, 2024, NEE's total net available liquidity was approximately $12.0 billion. The table below provides the components of FPL's and NEECH's net available liquidity at September 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 $1,663 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.

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 $1,979 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. Approximately $2,350 million of FPL's and $1,700 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 $2,425 million of FPL's and $2,750 million of NEECH's bilateral revolving credit facilities expire over the next 12 months.

Previous wording

(d) Excludes short-term borrowings under NEECH's bilateral revolving credit facilities of $450 million, which are included in borrowings above.

Current wording

(d) Excludes short-term borrowings under NEECH's bilateral revolving credit facilities of $2,100 million, which are included in borrowings above.

Previous 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).

Current wording

In addition, at September 30, 2024, NEE subsidiaries had approximately $6.0 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

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.

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 September 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 September 30, 2024) plus contract settlement net payables, net of collateral posted for obligations under these guarantees, totaled approximately $1.5 billion.

Previous 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.

Current wording

At September 30, 2024, subsidiaries of NEE also had approximately $5.6 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.

Previous 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:

Current wording

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three and nine months ended September 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 and six months ended June 30, 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 nine months ended September 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 $1 million and $1 million at June 30, 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 $2 million and $1 million at September 30, 2024 and December 31, 2023, respectively.

Previous 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.

Current wording

At September 30, 2024, NEE had interest rate contracts with a net notional amount of approximately $30.5 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.

Previous 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.

Current wording

Based upon a hypothetical 10% decrease in interest rates, the fair value of NEE's net liabilities would increase by approximately $3,107 million ($1,144 million for FPL) at September 30, 2024.