FLORIDA POWER & LIGHT CO

Previous wording

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 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 discussion should be read in conjunction with the Notes to Condensed Consolidated Financial Statements contained hereinand Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2025 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 discussion, 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 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 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 to Condensed Consolidated Financial Statements contained hereinand Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2025 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, 2026 and 2025, approximately $30 million of gains and $45 million of losses, respectively, are included in NEER's net income; the remaining 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, 2026 and 2025, approximately $215 million of gains and $161 million of losses, respectively, and for the six months ended June 30, 2026 and 2025, approximately $245 million of gains and $206 million of losses, respectively, are included in NEER's net income; the remaining 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

(b) The three months ended March 31, 2025 includes an impairment charge related to the investment in XPLR. See Note 3 – Nonrecurring Fair Value Measurements.

Current wording

(b) The six months ended June 30, 2025 includes an impairment charge related to the investment in XPLR. See Note 3 – Nonrecurring Fair Value Measurements.

Previous wording

Net income attributable to NEE increased by $1,349 million for the three months ended March 31, 2026 reflecting higher results at FPL, NEER and Corporate and Other.

Current wording

Net income attributable to NEE increased $1,116 million and $2,464 million for the three and six months ended June 30, 2026, respectively, reflecting higher results at FPL, NEER and Corporate and Other.

Previous wording

FPL's increase in net income for the three months ended March 31, 2026 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, 2026 was primarily driven by continued investments in plant in service and other property.

Previous wording

NEER's results increased for the three months ended March 31, 2026 primarily reflecting the absence of an impairment charge related to the investment in XPLR recorded in 2025, gains on the 2026 sale of ownership interests in a transmission asset and higher earnings from new investments, partly offset by lower earnings from the customer supply business.

Current wording

NEER's results increased for the three months ended June 30, 2026 primarily reflecting favorable non-qualifying hedge activity compared to 2025 and higher earnings from new investments. NEER's results increased for the six months ended June 30, 2026 primarily reflecting the absence of an impairment charge related to the investment in XPLR recorded in 2025, favorable non-qualifying hedge activity compared to 2025 and higher earnings from new investments.

Previous wording

Corporate and Other's results increased for the three months ended March 31, 2026 primarily due to favorable non-qualifying hedge activity compared to 2025.

Current wording

Corporate and Other's results increased for the three and six months ended June 30, 2026 primarily due to favorable non-qualifying hedge activity compared to 2025, partly offset by higher interest expense driven by higher average debt balances.

Previous wording

NEE's effective income tax rates for the three months ended March 31, 2026 and 2025 were approximately (41)% and 914%, 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, 2026 and 2025 were approximately (3)% and (19)%, respectively, and for the six months ended June 30, 2026 and 2025 were (15)% and (59)%, respectively. See Note 4 for a discussion of NEE's and FPL's effective income tax rates.

Previous wording

FPL's net income increased $146 million for the three months ended March 31, 2026. Investments in plant in service and other property grew FPL's average rate base by approximately $6.3 billion for the three months ended March 31, 2026 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

FPL's net income increased $137 million and $283 million for the three and six months ended June 30, 2026, respectively. Investments in plant in service and other property grew FPL's average rate base by approximately $6.8 billion and $6.6 billion for the three and six months ended June 30, 2026, 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 a RSM for the three months ended March 31, 2026 is permitted by the 2025 rate agreement, and, for the prior year period, the use of reserve amortization was permitted by the 2021 rate agreement. The RSM reserve, which is authorized up to approximately $1.5 billion, after tax, over the term of the 2025 rate agreement, includes ITC amortization for battery storage projects placed in service in 2025, the remaining balance from FPL's previous reserve amortization mechanism as of January 1, 2026 and certain amounts related to deferred tax liabilities.

Current wording

The use of RSM for the three and six months ended June 30, 2026 is permitted by the 2025 rate agreement, and, for the prior year periods, the use of reserve amortization was permitted by the 2021 rate agreement. The RSM reserve, which is authorized up to approximately $1.5 billion, after tax, over the term of the 2025 rate agreement, includes ITC amortization for battery storage projects placed in service in 2025, the remaining balance from FPL's previous reserve amortization mechanism as of January 1, 2026 and certain amounts related to deferred tax liabilities.

Previous wording

During the three months ended March 31, 2026, FPL recorded RSM amortization of approximately $306 million, after tax, reflecting ITC and reserve amortization in accordance with the 2025 rate agreement. During the three months ended March 31, 2025, FPL recorded reserve amortization of approximately $622 million, pre-tax. See Depreciation and Amortization Expense and Income Taxes below. FPL earned a regulatory ROE of approximately 11.70% and 11.60% on its retail rate base, based on a trailing thirteen-month average retail rate base as of March 31, 2026 and March 31, 2025, respectively.

Current wording

During the three months ended June 30, 2026, FPL recorded the reversal of RSM amortization of approximately $110 million, after tax, reflecting the reversal of reserve amortization in accordance with the 2025 rate agreement. During the six months ended June 30, 2026, FPL recorded RSM amortization of approximately $196 million, after tax, reflecting ITC and reserve amortization in accordance with the 2025 rate agreement. During the three and six months ended June 30, 2025, FPL recorded pre-tax reserve amortization of approximately $19 million and $641 million, respectively. See Depreciation and Amortization Expense and Income Taxes below. FPL earned a regulatory ROE of approximately 11.70% and 11.60% on its retail rate base, based on a trailing thirteen-month average retail rate base as of June 30, 2026 and June 30, 2025, respectively.

Previous wording

In February 2026, the non‑signatories challenged the FPSC’s final order approving the 2025 rate agreement through a motion for reconsideration with the FPSC and appeals with the Florida Supreme Court. In April 2026, the FPSC denied substantially all of the motion for reconsideration, and the matter remains pending before the Florida Supreme Court. See Note 11 – Rate Regulation.

Current wording

In February 2026, the non‑signatories challenged the FPSC’s final order approving the 2025 rate agreement through a motion for reconsideration with the FPSC and appeals with the Florida Supreme Court. In April 2026, the FPSC denied substantially all of the motion for reconsideration, and the matter remains pending before the Florida Supreme Court. In May 2026, notices of appeal were filed with the Florida Supreme Court challenging the FPSC's order denying reconsideration of the FPSC's final order approving the 2025 rate agreement. In June 2026, the Florida Supreme Court consolidated the appeals into a single proceeding. See Note 11 – Rate Regulation.

Previous wording

During the three months ended March 31, 2026, operating revenues increased $274 million.

Current wording

During the three and six months ended June 30, 2026, operating revenues increased $188 million and $462 million, respectively.

Previous wording

Retail base revenues increased by approximately $284 million reflecting additional revenues of approximately $200 million related to new retail base rates under the 2025 rate agreement. Retail base revenues during the three months ended March 31, 2026 were also impacted by an increase of 1.7% in the average usage per retail customer driven by favorable weather as well as an increase of 1.6% in the number of average customers when compared to the prior year period.

Current wording

Retail base revenues during the three and six months ended June 30, 2026 increased by approximately $276 million and $561 million, respectively, reflecting additional revenues of $251 million and $451 million, respectively, related to new retail base rates under the 2025 rate agreement. Retail base revenues for the three and six months ended June 30, 2026 were also impacted by increases of approximately 1.5% and 1.6%, respectively, in the average number of customer accounts, partly offset by decreases of 1.2% and 0.1%, respectively, in the average usage per retail customer when compared to the prior year periods.

Previous wording

The increase in operating revenues for the three months ended March 31, 2026 also reflects increases in fuel revenues of approximately $70 million, other base revenues of $64 million and storm protection plan cost recovery clause revenues of $62 million. The increase in operating revenues for the three months ended March 31, 2026 was partly offset by a decrease in storm cost recovery revenues of approximately $247 million primarily associated with the completion of surcharges for Hurricanes Debby, Helene and Milton, as discussed above.

Current wording

The increase in operating revenues for the three and six months ended June 30, 2026 also reflects increases in fuel revenues of approximately $137 million and $207 million, respectively, and increases in storm protection plan cost recovery clause revenues of $47 million and $108 million, respectively. The increase in operating revenues for the three and six months ended June 30, 2026 was partly offset by decreases in storm cost recovery revenues of approximately $309 million and $556 million, respectively, primarily associated with the completion of surcharges for Hurricanes Debby, Helene and Milton, as discussed above.

Previous wording

Depreciation and amortization expense increased $257 million during the three months ended March 31, 2026 primarily reflecting the impact of lower RSM amortization (reserve amortization in 2025) as well as higher plant in service balances. During the three months ended March 31, 2026 and 2025, FPL recorded pre-tax RSM amortization (reserve amortization in 2025) of approximately $209 million and $622 million, respectively. For the three months ended March 31, 2026, in order to achieve the targeted regulatory ROE, the use of RSM amortization is permitted by the 2025 rate agreement, and in the prior-year period, the use of reserve amortization was permitted by the 2021 rate agreement. See Note 11 – Rate Regulation.

Current wording

Depreciation and amortization expense increased $206 million during the six months ended June 30, 2026 primarily reflecting the impact of lower RSM amortization (reserve amortization in 2025) as well as higher plant in service balances. During the six months ended June 30, 2026 and 2025, FPL recorded pre-tax RSM amortization (reserve amortization in 2025) of approximately $62 million and $641 million, respectively. The increase in depreciation and amortization expense during the six months ended June 30, 2026 is partly offset by approximately $556 million of lower amortization of deferred storm costs primarily associated with the completion of the surcharges related to Hurricanes Debby, Helene and Milton, as discussed above.

Previous wording

During the three months ended March 31, 2026, FPL’s income taxes decreased $233 million primarily related to approximately $150 million of ITC amortization, utilized as part of the RSM, as well as higher clean energy tax credits as compared to the prior year period. As of March 31, 2026, approximately $1.225 billion, after tax, of total RSM reserve remains available under the 2025 rate agreement. See Note 11 – Rate Regulation and Note 4.

Current wording

During the six months ended June 30, 2026, FPL’s income taxes decreased $276 million primarily related to approximately $150 million of ITC amortization, utilized as part of the RSM, as well as higher clean energy tax credits as compared to the prior year period. As of June 30, 2026, approximately $1.335 billion, after tax, of total RSM reserve remains available under the 2025 rate agreement. See Note 11 – Rate Regulation and Note 4.

Previous wording

NEER’s results increased $847 million for the three months ended March 31, 2026. The primary drivers, on an after-tax basis, of the changes are in the following table.

Current wording

NEER’s results increased $651 million and$1,498 million for the three and six months ended June 30, 2026, 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, 2026 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, 2025.

Current wording

Results from new investments for the three and six months ended June 30, 2026 increased primarily due to higher earnings related to new wind and solar generation.

Previous wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $11 million of gains for the three months ended March 31, 2026 compared to $188 million of gains for the comparable period in 2025).

Current wording

•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $188 million of gains for the three months ended June 30, 2026 compared to $175 million of losses for the comparable period in 2025); and

Previous wording

•revenues from new investments of approximately $181 million; and

Current wording

•revenues from new investments of approximately $394 million;

Previous wording

•revenues of $129 million from higher generation at other peak generation facilities, driven by favorable weather;

Current wording

•revenues of $119 million from higher generation at other peak generation facilities, driven by favorable weather.

Previous wording

Operating expenses – net for the three months ended March 31, 2026 increased $340 million primarily due to increases of $211 million in O&M expense and $108 million in fuel, purchased power and interchange expense. The increase was primarily associated with growth across the NEER businesses.

Current wording

Operating expenses – net for the three months ended June 30, 2026 increased $331 million primarily due to increases of $221 million in O&M expense and $57 million in fuel, purchased power and interchange expense. Operating expenses – net for the six months ended June 30, 2026 increased $672 million primarily due to increases of $432 million in O&M expense and $165 million in fuel, purchased power and interchange expense. The increases for both periods were primarily associated with growth across the NEER businesses.

Previous wording

Gains on disposal of businesses/assets – net for the three months ended March 31, 2026 increased $223 million primarily as a result of the sale of ownership interests in a transmission asset. See Note 11 – Disposal of a Business.

Current wording

Gains on disposal of businesses/assets – net for the six months ended June 30, 2026 increased $195 million primarily as a result of the sale of ownership interests in a transmission asset. See Note 11 – Disposal of a Business.

Previous wording

NEER’s interest expense for the three months ended March 31, 2026 decreased $47 million primarily reflecting approximately $199 million of favorable impacts related to changes in the fair value of interest rate derivative instruments, partly offset by a loss on extinguishment of debt as a result of the sale of ownership interests in a transmission asset (see Note 11 – Disposal of a Business) as well as higher average debt balances.

Current wording

NEER’s interest expense for the six months ended June 30, 2026 decreased $127 million primarily reflecting approximately $321 million of favorable impacts related to changes in the fair value of interest rate derivative instruments, partly offset by higher average debt balances as well as a loss on extinguishment of debt as a result of the sale of ownership interests in a transmission asset (see Note 11 – Disposal of a Business).

Previous wording

Equity in Earnings (Losses) of Equity Method Investees

Current wording

Equity in Earnings (Losses) of Equity Method Inve stees

Previous wording

NEER recognized $170 million of equity in earnings of equity method investees for the three months ended March 31, 2026, compared to $646 million of equity in losses of equity method investees for the three months ended March 31, 2025. The change for the three months ended March 31, 2026 primarily reflects the absence of an impairment charge related to the investment in XPLR recorded in 2025 of approximately $0.7 billion ($0.5 billion after tax) (see Note 3 – Nonrecurring Fair Value Measurements).

Current wording

NEER recognized $333 million and $177 million of equity in earnings of equity method investees for the three months ended June 30, 2026 and 2025. NEER recognized $503 million of equity in earnings of equity method investees for the six months ended June 30, 2026, compared to $469 million of equity in losses of equity method investees for the six months ended June 30, 2025. The change for the three and six months ended June 30, 2026 reflects higher earnings from equity method investees as well as a gain of approximately $119 million related to the sale of a partial interest in an equity method investment. The change for the six months ended June 30, 2026 also reflects the absence of an impairment charge related to the investment in XPLR recorded in 2025 of approximately $0.7 billion ($0.5 billion after tax) (see Note 3 – Nonrecurring Fair Value Measurements).

Previous wording

Corporate and Other's results increased $356 million during the three months ended March 31, 2026 primarily due to favorable after-tax impacts of approximately $395 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 increased $328 million during the three months ended June 30, 2026 primarily due to favorable after-tax impacts of approximately $453 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 (see Note 2), partly offset by higher interest expense driven by higher average debt balances.

Previous wording

NEE's sources and uses of cash for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

NEE's sources and uses of cash for the six months ended June 30, 2026 and 2025 were as follows:

Previous wording

The following table provides a summary of capital investments for the three months ended March 31, 2026 and 2025.

Current wording

The following table provides a summary of capital investments for the six months ended June 30, 2026 and 2025.

Previous wording

As of March 31, 2026, NEE's total net available liquidity was approximately $14.8 billion. The table below provides the components of FPL's and NEECH's net available liquidity as of March 31, 2026.

Current wording

As of June 30, 2026, NEE's total net available liquidity was approximately $18.1 billion. The table below provides the components of FPL's and NEECH's net available liquidity as of June 30, 2026.

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 $1,450 million ($450 million for FPL and $1,000 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 $1,566 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 $1,973 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity. As of March 31, 2026, approximately $3,250 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 $1,450 million ($450 million for FPL and $1,000 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 $1,566 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 $2,223 million of floating rate notes in the event an individual noteholder requires repayment at specified dates prior to maturity. As of June 30, 2026, approximately $3,250 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, 2026, approximately $555 million of FPL's and $2,300 million of NEECH's bilateral revolving credit facilities expire over the next 12 months.

Current wording

(b) Only available for the funding of loans. As of June 30, 2026, approximately $2,350 million of FPL's and $2,900 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, 2026, approximately $79 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. As of June 30, 2026, approximately $52 million of the letter of credit facilities expire over the next 12 months.

Previous wording

In addition, as of March 31, 2026, NEE subsidiaries had approximately $7.4 billion in guarantees related to obligations under PPAs and acquisition agreements, interconnection agreements, nuclear-related activities, support for NEER's retail electricity provider activities, as well as other types of contractual obligations (see Note 12 – Commitments).

Current wording

In addition, as of June 30, 2026, NEE subsidiaries had approximately $7.8 billion in guarantees related to obligations under PPAs and acquisition agreements, interconnection agreements, nuclear-related activities, 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. As of March 31, 2026, these guarantees totaled approximately $3.2 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. As of June 30, 2026, these guarantees totaled approximately $3.3 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. As of March 31, 2026, 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 March 31, 2026) 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. As of June 30, 2026, 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 June 30, 2026) plus contract settlement net payables, net of collateral posted for obligations under these guarantees, totaled approximately $1.5 billion.

Previous wording

As of March 31, 2026, subsidiaries of NEE also had approximately $8.1 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.

Current wording

As of June 30, 2026, subsidiaries of NEE also had approximately $8.0 billion of standby letters of credit and approximately $1.8 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, 2026 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, 2026 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, 2025 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, 2025 were as follows: