UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~September 3130, ~~2013~~2017



Commission File Number	Exact name of registrants as specified in their charters, address of principal executive offices and registrants' telephone number	IRS Employer Identification Number
1-8841	NEXTERA ENERGY, INC.	59-2449419
2-27612	FLORIDA POWER & LIGHT COMPANY	59-0247775
	700 Universe Boulevard Juno Beach, Florida 33408 (561) 694-4000

State or other jurisdiction of incorporation or organization: Florida

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) have been subject to such filing requirements for the past 90 days.

NextEra Energy, Inc. Yes þ No o¨ Florida Power & Light Company Yes þ No o¨

Indicate by check mark whether the registrants have submitted electronically and posted on their corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months ~~(or for such shorter period that the registrants were required to submit and post such files)~~.

NextEra Energy, Inc. Yes þ No o¨ Florida Power & Light Company Yes þ No o¨

Indicate by check mark whether the registrants are a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," ~~and~~ "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Securities Exchange Act of 1934.

NextEra Energy, Inc. Large Accelerated Filer þ Accelerated Filer ¨ Non-Accelerated Filer ¨ Smaller Reporting Company ¨ Emerging Growth Company ¨ Florida Power & Light Company Large Accelerated Filer ¨ Accelerated Filer ¨ Non-Accelerated Filer þ Smaller Reporting Company ¨ Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934. o

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨ No þ

~~The~~Number ~~number~~ of shares ~~outstanding~~ of NextEra Energy, Inc. common stock, ~~as of the latest practicable date: Common Stock,~~ $0.01 par value, outstanding as of ~~March~~September 3130, ~~2013~~2017: ~~424~~1,~~638,080~~000 ~~shares.~~

AsNumber of ~~March 31, 2013, there were issued and outstanding 1,000~~ shares of Florida Power & Light Company common stock, without par value, outstanding as of September 30, 2017, all of which were held, beneficially and of record, by NextEra Energy, Inc.: 1,000

This combined Form 10-Q represents separate filings by NextEra Energy, Inc. and Florida Power & Light Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Florida Power & Light Company makes no representations as to the information relating to NextEra Energy, Inc.'s other operations.

Florida Power & Light Company meets the conditions set forth in General Instruction H.(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

~~TABLE OF CONTENTS~~DEFINITIONS

		Page No.
Forward-Looking Statements		3
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 5.	Other Information	52
Item 6.	Exhibits	53
Signatures		54

Acronyms and defined terms used in the text include the following:

NextEra Energy, Inc., Florida Power & Light Company, NextEra Energy Capital Holdings, Inc. and NextEra Energy Resources, LLC each has subsidiaries and affiliates with names that may include NextEra Energy, FPL, NextEra Energy Resources, FPL Group Capital, FPL Energy, FPLE and similar references. For convenience and simplicity, in this report the terms NEE, FPL, NEECH and NEER are sometimes used as abbreviated references to specific subsidiaries, affiliates or groups of subsidiaries or affiliates. The precise meaning depends on the context.



Term	Meaning
AFUDC	allowance for funds used during construction
AFUDC - equity	equity component of AFUDC
AOCI	accumulated other comprehensive income
capacity clause	capacity cost recovery clause, as established by the FPSC
Duane Arnold	Duane Arnold Energy Center
EPA	U.S. Environmental Protection Agency
FASB	Financial Accounting Standards Board
FERC	U.S. Federal Energy Regulatory Commission
Florida Southeast Connection	Florida Southeast Connection, LLC, a wholly owned NEER subsidiary
FPL	Florida Power & Light Company
FPSC	Florida Public Service Commission
fuel clause	fuel and purchased power cost recovery clause, as established by the FPSC
GAAP	generally accepted accounting principles in the U.S.
ITC	investment tax credit
kWh	kilowatt-hour(s)
Management's Discussion	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
MMBtu	One million British thermal units
MW	megawatt(s)
MWh	megawatt-hour(s)
NEE	NextEra Energy, Inc.
NEECH	NextEra Energy Capital Holdings, Inc.
NEER	NextEra Energy Resources, LLC
NEET	NextEra Energy Transmission, LLC
NEP	NextEra Energy Partners, LP
NEP OpCo	NextEra Energy Operating Partners, LP
Note __	Note __ to condensed consolidated financial statements
NRC	U.S. Nuclear Regulatory Commission
O&M expenses	other operations and maintenance expenses in the condensed consolidated statements of income
OCI	other comprehensive income
OTC	over-the-counter
OTTI	other than temporary impairment
PTC	production tax credit
PV	photovoltaic
Recovery Act	American Recovery and Reinvestment Act of 2009, as amended
regulatory ROE	return on common equity as determined for regulatory purposes
Sabal Trail	Sabal Trail Transmission, LLC, an entity in which a wholly owned NEER subsidiary has a 42.5% ownership interest
Seabrook	Seabrook Station
SEC	U.S. Securities and Exchange Commission
U.S.	United States of America

NEE, FPL, NEECH and NEER each has subsidiaries and affiliates with names that may include NextEra Energy, FPL, NextEra Energy Resources, NextEra, FPL Group, FPL Group Capital, FPL Energy, FPLE and similar references. For convenience and simplicity, in this report the terms NEE, FPL, NEECH and NEER are sometimes used as abbreviated references to specific subsidiaries, affiliates or groups of subsidiaries or affiliates. The precise meaning depends on the context.

TABLE OF CONTENTS



		Page No.

Definitions		2
Forward-Looking Statements		4

	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	52

	PART II - OTHER INFORMATION

Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 6.	Exhibits	54

Signatures		55

FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, strategies, future events or performance (often, but not always, through the use of words or phrases such as ~~will,~~may ~~will~~ result, are expected to, will continue, is anticipated, aim, believe, will, could, should, would, estimated, may, plan, potential, future, projection, goals, target, outlook, predict and intend or words of similar meaning) are not statements of historical facts and may be forward looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could have a significant impact on ~~NextEra Energy, Inc.~~NEE's ~~(NEE)~~ and/or ~~Florida Power & Light Company~~FPL's ~~(FPL)~~ operations and financial results, and could cause NEE's and/or FPL's actual results to differ materially from those contained or implied in forward-looking statements made by or on behalf of NEE and/or FPL in this combined Form 10-Q, in presentations, on their respective websites, in response to questions or otherwise.

Regulatory, Legislative and Legal Risks

• NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected by the extensive regulation of their business.

• NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected if they are unable to recover in a timely manner any significant amount of costs, a return on certain assets or ana ~~appropriate~~reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise.


•	Regulatory decisions that are important to NEE and FPL may be materially adversely affected by political, regulatory and economic factors.

• FPL's use of derivative instruments could be subject to prudence challenges and, if found imprudent, could result in disallowances of cost recovery for such use by the ~~Florida Public Service Commission (~~FPSC).

• Any reductions or modifications to, or the elimination of, governmental incentives or policies that support utility scale renewable energy, including, but not limited to, tax laws, policies and incentives, renewable portfolio standards, ~~(RPS) or~~ feed-in tariffs or the EPA's final rule under Section 111(d) of the Clean Air Act, or the imposition of additional taxes or other assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy projects, ~~NextEra Energy Resources, LLC (~~NEER) abandoning the development of renewable energy projects, a loss of NEER's investments in renewable energy projects and reduced project returns, any of which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

• NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected as a result of new or revised laws, regulations, or interpretations or other regulatory initiatives.

• NEE's and FPL's ~~business,~~are ~~financial~~subject ~~condition,~~to ~~results~~numerous ofenvironmental ~~operations~~laws, regulations and ~~prospects~~other ~~could~~standards bethat ~~materially~~may ~~adversely~~result ~~affected~~in ifcapital ~~the~~expenditures, ~~rules~~increased ~~implementing~~operating ~~the~~costs ~~Dodd-Frank~~and ~~Wall~~various ~~Street~~liabilities, ~~Reform~~ and ~~Consumer~~may ~~Protection~~require ~~Act~~NEE ~~(Dodd-Frank Act) broaden the scope of its provisions regarding the regulation of over-the-counter (OTC) financial derivatives~~ and ~~make~~FPL ~~them~~to ~~applicable~~limit toor ~~NEE~~eliminate ~~and~~certain ~~FPL~~operations.

• NEE and FPL are subject to numerous environmental laws, regulations and other standards that may result in capital expenditures, increased operating costs and various liabilities.


•	NEE's and FPL's business could be negatively affected by federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions.

• Extensive federal regulation of the operations and businesses of NEE and FPL exposes NEE and FPL to significant and increasing compliance costs and may also expose them to substantial monetary penalties and other sanctions for compliance failures.

• Changes in tax laws, guidance or policies, including but not limited to changes in corporate income tax rates, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.


•	NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected due to adverse results of litigation.

Operational Risks


•	NEE's and FPL's business, financial condition, results of operations and prospects could suffer if NEE and FPL do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget.


•	NEE and FPL may face risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede their development and operating activities.


•	The operation and maintenance of NEE's and FPL's electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities are subject to many operational risks, the consequences of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.


•	NEE's and FPL's business, financial condition, results of operations and prospects may be negatively affected by a lack of growth or slower growth in the number of customers or in customer usage.


•	NEE's and FPL's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather.


•	Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt NEE's and FPL's business, or the businesses of third parties, may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

• The ability of NEE and FPL to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NEE's and FPL's insurance coverage does not provide protection against all significant losses.

• IfNEE ~~supply~~invests ~~costs~~in ~~necessary~~gas toand ~~provide~~oil producing and transmission assets through NEER'’s ~~full~~gas ~~energy~~infrastructure ~~and~~business. ~~capacity~~The ~~requirement~~gas ~~services~~infrastructure ~~are~~business ~~not~~is ~~favorable~~exposed to fluctuating market prices of natural gas, ~~operating~~natural ~~costs~~gas ~~could~~liquids, ~~increase~~oil and ~~adversely~~other ~~affect~~energy ~~NEE'~~commodities. A prolonged period of low gas and oil prices could impact NEER’s gas infrastructure business, ~~financial~~and ~~condition~~cause NEER to delay or cancel certain gas infrastructure projects and for certain existing projects to be impaired, which could materially adversely affect NEE's results of operations ~~and prospects~~.

• ~~Due~~If tosupply ~~the~~costs ~~potential~~necessary ~~for~~to ~~significant~~provide ~~volatility in market prices for fuel, electricity and renewable and other energy commodities,~~ NEER's ~~inability~~full orenergy ~~failure~~and tocapacity ~~hedge~~requirement ~~effectively~~services ~~its~~are ~~assets~~not ~~or positions against changes in commodity prices~~favorable, ~~volumes,~~operating ~~interest~~costs ~~rates,~~could ~~counterparty~~increase ~~credit~~and ~~risk~~materially oradversely ~~other~~affect ~~risk measures could significantly impair~~ NEE's business, financial condition, results of operations and prospects.

• ~~Sales~~Due ofto ~~power~~the onpotential ~~the~~for ~~spot~~significant volatility in market prices for fuel, electricity and renewable and other energy commodities, NEER's inability or onfailure ato ~~short-term~~manage ~~contractual~~properly ~~basis~~or ~~may~~hedge ~~cause~~effectively the commodity risks within its portfolios could materially adversely affect NEE's business, financial condition, results of operations toand ~~be volatile~~prospects.


•	Reductions in the liquidity of energy markets may restrict the ability of NEE to manage its operational risks, which, in turn, could negatively affect NEE's results of operations.

• ~~If price movements significantly or persistently deviate from historical behavior,~~ NEE's and FPL's hedging and trading procedures and associated risk management tools may not protect against significant losses.


•	If price movements significantly or persistently deviate from historical behavior, NEE's and FPL's risk management tools associated with their hedging and trading procedures may not protect against significant losses.


•	If power transmission or natural gas, nuclear fuel or other commodity transportation facilities are unavailable or disrupted, FPL's and NEER's ability to sell and deliver power or natural gas may be limited.


•	NEE and FPL are subject to credit and performance risk from customers, hedging counterparties and vendors.


•	NEE and FPL could recognize financial losses or a reduction in operating cash flows if a counterparty fails to perform or make payments in accordance with the terms of derivative contracts or if NEE or FPL is required to post margin cash collateral under derivative contracts.


•	NEE and FPL are highly dependent on sensitive and complex information technology systems, and any failure or breach of those systems could have a material adverse effect on their business, financial condition, results of operations and prospects.

• NEE's and FPL's retail businesses are subject to the risk that sensitive customer data may be compromised, which could result in ana material adverse impact to their reputation and/or have a material adverse effect on the business, financial condition, results of operations and prospects of ~~the~~NEE ~~retail~~and ~~business~~FPL.


•	NEE and FPL could recognize financial losses as a result of volatility in the market values of derivative instruments and limited liquidity in OTC markets.

• NEE and FPL may be materially adversely affected by negative publicity.


•	NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected if FPL is unable to maintain, negotiate or renegotiate franchise agreements on acceptable terms with municipalities and counties in Florida.

• Increasing costs associated with health care plans may materially adversely affect NEE's and FPL's results of operations.

• NEE's and FPL's business, financial condition, results of operations and prospects could be negatively affected by the lack of a qualified workforce or the loss or retirement of key employees.


•	NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected by work strikes or stoppages and increasing personnel costs.


•	NEE's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry.


•	NEP’s acquisitions may not be completed and, even if completed, NEE may not realize the anticipated benefits of any acquisitions, which could materially adversely affect NEE’s business, financial condition, results of operations and prospects.

Nuclear Generation Risks

• The ~~construction,~~ operation and maintenance of NEE's and FPL's nuclear generation facilities involve environmental, health and financial risks that could result in fines or the closure of the facilities and in increased costs and capital expenditures.

• In the event of an incident at any nuclear generation facility in the ~~United States (~~U.S.) or at certain nuclear generation facilities in Europe, NEE and FPL could be assessed significant retrospective assessments and/or retrospective insurance premiums as a result of their participation in a secondary financial protection system and nuclear insurance mutual companies.

• 4NRC orders or new regulations related to increased security measures and any future safety requirements promulgated by the NRC could require NEE and FPL to incur substantial operating and capital expenditures at their nuclear generation facilities and/or result in reduced revenues.

• ~~U.S.~~The ~~Nuclear~~inability ~~Regulatory~~to ~~Commission~~operate ~~(NRC)~~any ~~orders~~of NEE's or ~~new~~FPL's ~~regulations~~nuclear ~~related~~generation tounits ~~increased~~through ~~security~~the ~~measures~~end ~~and~~of ~~any~~their ~~future~~respective ~~safety~~operating ~~requirements~~licenses ~~promulgated~~could byhave ~~the~~a ~~NRC~~material ~~could~~adverse ~~require~~effect on NEE's and FPL's tobusiness, ~~incur~~financial ~~substantial~~condition, ~~operating~~results ~~and~~of ~~capital~~operations ~~expenditures~~and ~~at their nuclear generation facilities~~prospects.

• ~~The inability to operate any of NEER~~NEE's orand FPL's nuclear ~~generation~~ units ~~through~~are ~~the~~periodically ~~end~~removed offrom ~~their~~service ~~respective~~to ~~operating~~accommodate ~~licenses~~planned ~~could~~refueling ~~have~~and amaintenance ~~material~~outages, ~~adverse~~and ~~effect~~for onother purposes. If planned outages last longer than anticipated or if there are unplanned outages, NEE's and FPL's ~~business,~~results of operations and financial condition, ~~results~~could ofbe ~~operations~~materially ~~and~~adversely ~~prospects~~affected.

• Various hazards posed to nuclear generation facilities, along with increased public attention to and awareness of such hazards, could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict and could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

• NEE's and FPL's nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, and for other purposes. If planned outages last longer than anticipated or if there are unplanned outages, NEE's and FPL's results of operations and financial condition could be materially adversely affected.

Liquidity, Capital Requirements and Common Stock Risks

• Disruptions, uncertainty or volatility in the credit and capital markets may negatively affect NEE's and FPL's ability to fund their liquidity and capital needs and to meet their growth objectives, and can also materially adversely affect the results of operations and financial condition of NEE and FPL.

• NEE's, ~~NextEra Energy Capital Holdings, Inc.~~NEECH's ~~(NEECH)~~ and FPL's inability to maintain their current credit ratings may materially adversely affect NEE's and FPL's liquidity and results of operations, limit the ability of NEE and FPL to grow their business, and increase interest costs.

• NEE's and FPL's liquidity may be impaired if their ~~creditors~~credit providers are unable to fund their credit commitments to the companies or to maintain their current credit ratings.

• Poor market performance and other economic factors could affect NEE's defined benefit pension plan's funded status, which may materially adversely affect NEE's and FPL's business, financial condition, liquidity and results of operations and prospects.

• Poor market performance and other economic factors could adversely affect the asset values of NEE's and FPL's nuclear decommissioning funds, which may materially adversely affect NEE's and FPL's liquidity, financial condition and results of operations.

• Certain of NEE's investments are subject to changes in market value and other risks, which may materially adversely affect NEE's liquidity, ~~and~~ financial condition and results of operations.


•	NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay upstream dividends or repay funds to NEE.


•	NEE may be unable to meet its ongoing and future financial obligations and to pay dividends on its common stock if NEE is required to perform under guarantees of obligations of its subsidiaries.


•	NEP may not be able to access sources of capital on commercially reasonable terms, which would have a material adverse effect on its ability to consummate future acquisitions and on the value of NEE’s limited partner interest in NEP OpCo.


•	Disruptions, uncertainty or volatility in the credit and capital markets may exert downward pressure on the market price of NEE's common stock.

These factors should be read together with the risk factors included in Part I, Item 1A. Risk Factors in NEE's and FPL's Annual Report on Form 10-K for the year ended December 31, ~~2012~~2016 (~~2012~~2016 Form 10-K), and investors should refer to that section of the ~~2012~~2016 Form 10-K. Any forward-looking statement speaks only as of the date on which such statement is made, and NEE and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.

Website Access to ~~U.S. Securities and Exchange Commission (~~SEC) Filings. NEE and FPL make their SEC filings, including the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, available free of charge on NEE's internet website, www.nexteraenergy.com, as soon as reasonably practicable after those documents are electronically filed with or furnished to the SEC. The information and materials available on NEE's website (or any of its subsidiaries' websites) are not incorporated by reference into this combined Form 10-Q. The SEC maintains an internet website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC at www.sec.gov.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions, except per share amounts)

(unaudited)

	Three Months Ended March 31,
		Three Months EndedSeptember 30,							Nine Months EndedSeptember 30,
	2013				2012
		2017				2016			2017			2016
OPERATING REVENUES	$	~~3,279~~$	4,808		$	~~3,371~~$	4,805		$	13,185		$	12,457
OPERATING EXPENSES
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange	~~1,065~~	1,176			~~1,182~~	1,217			3,093			3,105
Other operations and maintenance	~~756~~	769			~~775~~	833			2,400			2,474
Impairment charge	300				—
Merger		2				123			17			129
Depreciation and amortization	~~419~~	1,070			~~320~~	983			2,576			2,262
Taxes other than income taxes and other	305				291
Gains on disposal of a business/assets - net		(5		)		(4		)	(1,106		)	(257		)
Total operating expenses	2,845				2,568
Taxes other than income taxes and other - net		397				374			1,115			1,062
OPERATING INCOME	434				803
Total operating expenses - net		3,409				3,526			8,095			8,775
OTHER INCOME (DEDUCTIONS)
OPERATING INCOME		1,399				1,279			5,090			3,682
Interest expense	(272		)		(265		)
OTHER INCOME (DEDUCTIONS)
Benefits associated with differential membership interests - net	40				41
Interest expense		(381		)		(369		)	(1,171		)	(1,480		)
Allowance for equity funds used during construction	26				13
Benefits associated with differential membership interests - net		67				59			311			220
Interest income	19				20
Equity in earnings of equity method investees		56				70			153			147
Other - net	5				6
Allowance for equity funds used during construction		21				20			68			62
Total other deductions - net	(182		)		(185		)
Interest income		20				23			59			61
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	252				618
Gains on disposal of investments and other property - net		15				9			64			36
INCOME TAXES	168				157
Revaluation of contingent consideration		—				101			—			118
INCOME FROM CONTINUING OPERATIONS	84				461
Other - net		23				15			7			21
NET GAIN FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	188				—
Total other deductions - net		(179		)		(72		)	(509		)	(815		)
NET INCOME	$	272			$	461
INCOME BEFORE INCOME TAXES		1,220				1,207			4,581			2,867
Basic earnings per share of common stock:
INCOME TAXES		364				418			1,329			879
Continuing operations	$	0.20			$	1.12
NET INCOME		856				789			3,252			1,988
Discontinued operations	0.45				—
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		9				36			29			42
Net income	$	0.65			$	1.12
NET INCOME ATTRIBUTABLE TO NEE		$	847			$	753		$	3,223		$	1,946
Earnings per share of common stock - assuming dilution:
Earnings per share attributable to NEE:
Continuing operations	$	0.20			$	1.11
Basic		$	1.80			$	1.63		$	6.88		$	4.21
Discontinued operations	0.44				—
Assuming dilution		$	1.79			$	1.62		$	6.83		$	4.19
Net income	$	0.64			$	1.11
Dividends per share of common stock		$	0.9825			$	0.87		$	2.9475		$	2.61
Dividends per share of common stock	$	0.66			$	0.60
Weighted-average number of common shares outstanding:
Weighted-average number of common shares outstanding:
Basic		469.4				463.3			468.3			461.7
Basic	421.0				412.3
Assuming dilution		473.5				466.0			472.0			464.7
Assuming dilution	423.7				414.7

This report should be read in conjunction with the Notes ~~to Condensed Consolidated Financial Statements (Notes)~~ herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

(unaudited)

	Three Months Ended March 31,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2013			2012
	2017			2016			2017			2016
NET INCOME	$	~~272~~856		$	~~461~~789		$	3,252		$	1,988
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Net unrealized gains (losses) on cash flow hedges:
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive income (loss) to net income (net of $4, $3, $9 and $26 tax expense, respectively)	10			17			24			53
Effective portion of net unrealized gains (losses) (net of $27 tax expense and $2 tax benefit, respectively)	65			(7		)
Net unrealized gains (losses) on available for sale securities:
Reclassification from accumulated other comprehensive income to net income (net of $13 and $9 tax expense, respectively)	21			16
Net unrealized gains on securities still held (net of $23, $23, $68 and $42 tax expense, respectively)	31			31			91			56
Net unrealized gains (losses) on available for sale securities:
Reclassification from accumulated other comprehensive income (loss) to net income (net of $4, $2, $15 and $6 tax benefit, respectively)	(6		)	(2		)	(23		)	(8		)
Net unrealized gains on securities still held (net of $26 and $31 tax expense, respectively)	40			47
Defined benefit pension and other benefits plans (net of less than $1 tax benefit, $4 tax expense and $4 tax benefit, respectively)	(1		)	—			6			(7		)
Reclassification from accumulated other comprehensive income to net income (net of $4 and $4 tax benefit, respectively)	(6		)	(5		)
Net unrealized gains (losses) on foreign currency translation (net of less than $1, $1 and $1 tax expense and $2 tax benefit, respectively)	10			(9		)	30			19
Defined benefit pension and other benefits plans (net of $4 tax expense and $8 tax benefit, respectively)	7			(12		)
Other comprehensive income (loss) related to equity method investee (net of less than $1 tax expense, $0, less than $1 tax expense and $3 tax benefit, respectively)	1			3			1			(1		)
Net unrealized gains (losses) on foreign currency translation (net of $5 tax benefit and $3 tax expense, respectively)	(9		)	6
Total other comprehensive income, net of tax	45			40			129			112
Other comprehensive income related to equity method investee (net of less than a million and $4 tax benefit, respectively)	1			15
COMPREHENSIVE INCOME	901			829			3,381			2,100
Total other comprehensive income, net of tax	119			60
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	9			30			40			22
COMPREHENSIVE INCOME	$	391		$	521
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE	$	892		$	799		$	3,341		$	2,078

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except par value)

(unaudited)

	March 31, 2013				December 31, 2012
		September 30, 2017				December 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property	$	~~57,725~~$	84,045		$	~~57,054~~$	80,150
Nuclear fuel	~~1,860~~	2,011			~~1,895~~	2,131
Construction work in progress	~~5,905~~	6,492			~~5,968~~	4,732
Less accumulated depreciation and amortization	(15,666		)		(15,504		)
Accumulated depreciation and amortization		(21,460		)		(20,101		)
Total property, plant and equipment - net ($4,450 and $4,487 related to VIEs, respectively)	49,824				49,413
Total property, plant and equipment - net ($14,186 and $14,632 related to VIEs, respectively)		71,088				66,912
CURRENT ASSETS
Cash and cash equivalents	~~215~~	1,381			~~329~~	1,292
Customer receivables, net of allowances of $8 and $10, respectively	1,366				1,487
Customer receivables, net of allowances of $9 and $5, respectively		2,147				1,784
Other receivables	~~393~~	603			~~569~~	655
Materials, supplies and fossil fuel inventory	~~1,098~~	1,352			~~1,073~~	1,289
Regulatory assets:
Regulatory assets		551				524
Deferred clause and franchise expenses	104				75
Derivatives		442				885
Other	106				113
Assets held for sale		—				452
Derivatives	486				517
Other		551				528
Deferred income taxes	10				397
Total current assets		7,027				7,409
Assets held for sale	—				335
OTHER ASSETS
Other	267				342
Special use funds		5,894				5,434
Total current assets	4,045				5,237
Other investments ($474 and $479 related to a VIE, respectively)		2,983				2,482
OTHER ASSETS
Prepaid benefit costs		1,217				1,177
Special use funds	4,413				4,190
Regulatory assets ($53 and $107 related to a VIE, respectively)		3,290				1,894
Other investments	981				976
Derivatives		1,546				1,350
Prepaid benefit costs	1,049				1,031
Other		3,736				3,335
Regulatory assets:
Total other assets		18,666				15,672
Securitized storm-recovery costs ($270 and $274 related to a VIE, respectively)	447				461
TOTAL ASSETS		$	96,781			$	89,993
Other	628				582
CAPITALIZATION
Derivatives	902				920
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 470 and 468, respectively)		$	5			$	5
Other	1,554				1,629
Additional paid-in capital		9,046				8,948
Total other assets	9,974				9,789
Retained earnings		17,299				15,458
TOTAL ASSETS	$	63,843			$	64,439
Accumulated other comprehensive income (loss)		48				(70		)
CAPITALIZATION
Total common shareholders' equity		26,398				24,341
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 425 and 424, respectively)	$	4			$	4
Noncontrolling interests		923				990
Additional paid-in capital	5,557				5,536
Total equity		27,321				25,331
Retained earnings	10,777				10,783
Long-term debt ($5,909 and $5,080 related to VIEs, respectively)		30,345				27,818
Accumulated other comprehensive loss	(136		)		(255		)
Total capitalization		57,666				53,149
Total common shareholders' equity	16,202				16,068
CURRENT LIABILITIES
Long-term debt ($1,321 and $1,369 related to VIEs, respectively)	22,866				23,177
Commercial paper		2,074				268
Total capitalization	39,068				39,245
Other short-term debt		255				150
CURRENT LIABILITIES
Current maturities of long-term debt		2,285				2,604
Commercial paper	1,501				1,211
Accounts payable		2,256				3,447
Short-term debt	875				200
Customer deposits		449				470
Current maturities of long-term debt	2,682				2,771
Accrued interest and taxes		873				480
Accounts payable	1,094				1,281
Derivatives		257				404
Customer deposits	506				508
Accrued construction-related expenditures		921				1,120
Accrued interest and taxes	479				414
Regulatory liabilities		157				299
Derivatives	419				430
Liabilities associated with assets held for sale		—				451
Accrued construction-related expenditures	371				427
Other		2,077				1,226
Liabilities associated with assets held for sale	—				733
Total current liabilities		11,604				10,919
Other	849				904
OTHER LIABILITIES AND DEFERRED CREDITS
Total current liabilities	8,776				8,879
Asset retirement obligations		2,882				2,736
OTHER LIABILITIES AND DEFERRED CREDITS
Deferred income taxes		12,563				11,101
Asset retirement obligations	1,739				1,715
Regulatory liabilities		4,895				4,906
Deferred income taxes	6,660				6,703
Derivatives		514				477
Regulatory liabilities:
Deferral related to differential membership interests - VIEs		4,542				4,656
Accrued asset removal costs	1,809				1,950
Other		2,115				2,049
Asset retirement obligation regulatory expense difference	1,927				1,813
Total other liabilities and deferred credits		27,511				25,925
Other	363				309
COMMITMENTS AND CONTINGENCIES
Derivatives	391				587
TOTAL CAPITALIZATION AND LIABILITIES		$	96,781			$	89,993
Deferral related to differential membership interests - VIEs	1,739				1,784
Other	1,371				1,454
Total other liabilities and deferred credits	15,999				16,315
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	63,843			$	64,439

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)

	Three Months Ended March 31,
		Nine Months EndedSeptember 30,
	2013				2012
		2017				2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	~~272~~$	3,252		$	~~461~~$	1,988
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	~~419~~	2,576			~~320~~	2,262
Nuclear fuel and other amortization	81	210			76	275
Impairment charge	300				—
Unrealized losses on marked to market derivative contracts - net		45				369
Unrealized losses (gains) on marked to market energy contracts	42				(132		)
Foreign currency transaction losses (gains)		(23		)		99
Deferred income taxes	~~363~~	1,316			~~134~~	766
Cost recovery clauses and franchise fees	~~(19~~	61	)		48	111
Changes in prepaid option premiums and derivative settlements	13				(1		)
Acquisition of purchased power agreement		(258		)		—
Benefits associated with differential membership interests - net	~~(40~~	(311	)	)	~~(41~~	(220	)	)
Allowance for equity funds used during construction	(26		)		(13		)
Gains on disposal of a business/assets - net		(1,170		)		(291		)
Net gain from discontinued operations, net of income taxes	(188		)		—
Recoverable storm-related costs		(334		)		(17		)
Other - net	85	106			44	(161		)
Changes in operating assets and liabilities:
Customer and other receivables	136				59
Current assets		(544		)		(204		)
Materials, supplies and fossil fuel inventory	(25		)		(18		)
Noncurrent assets		(77		)		(17		)
Other current assets	(10		)		(24		)
Current liabilities		299				362
Other assets	(25		)		40
Noncurrent liabilities		12				(28		)
Accounts payable	42				(75		)
Net cash provided by operating activities		5,160				5,294
Margin cash collateral	(2		)		75
CASH FLOWS FROM INVESTING ACTIVITIES
Income taxes	(205		)		8
Capital expenditures of FPL		(3,676		)		(2,976		)
Interest and other taxes	74				66
Independent power and other investments of NEER		(4,678		)		(4,610		)
Other current liabilities	(219		)		(168		)
Nuclear fuel purchases		(175		)		(194		)
Other liabilities	14				(24		)
Other capital expenditures and other investments		(58		)		(149		)
Net cash provided by operating activities	1,082				835
Proceeds from sale of the fiber-optic telecommunications business		1,482				—
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of independent power and other investments of NEER		159				395
Capital expenditures of FPL	(810		)		(1,084		)
Proceeds from sale or maturity of securities in special use funds and other investments		2,059				2,635
Independent power and other investments of NEER	(972		)		(740		)
Purchases of securities in special use funds and other investments		(2,146		)		(2,711		)
Cash grants under the American Recovery and Reinvestment Act of 2009	170				—
Proceeds from sales of noncontrolling interests in NEP		—				645
Nuclear fuel purchases	(24		)		(44		)
Other - net		198				(18		)
Other capital expenditures	(61		)		(146		)
Net cash used in investing activities		(6,835		)		(6,983		)
Change in loan proceeds restricted for construction	112				45
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale or maturity of securities in special use funds	924				936
Issuances of long-term debt		5,196				4,644
Purchases of securities in special use funds	(946		)		(973		)
Retirements of long-term debt		(3,892		)		(2,654		)
Proceeds from sale or maturity of other securities	81				99
Proceeds from differential membership investors		340				328
Purchases of other securities	(68		)		(95		)
Net change in commercial paper		1,806				254
Other - net	16				7
Proceeds from other short-term debt		200				500
Net cash used in investing activities	(1,578		)		(1,995		)
Repayments of other short-term debt		(2		)		(362		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of common stock - net		36				528
Issuances of long-term debt	623				566
Dividends on common stock		(1,382		)		(1,205		)
Retirements of long-term debt	(923		)		(134		)
Other - net		(538		)		(234		)
Proceeds from sale of differential membership interests	—				303
Net cash provided by financing activities		1,764				1,799
Payments to differential membership investors	(20		)		—
Net increase in cash and cash equivalents		89				110
Net change in short-term debt	966				582
Cash and cash equivalents at beginning of period		1,292				571
Issuances of common stock - net	8				12
Cash and cash equivalents at end of period		$	1,381			$	681
Repurchases of common stock	—				(19		)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Dividends on common stock	(279		)		(248		)
Accrued property additions		$	2,036			$	2,655
Other - net	7				(4		)
Decrease (increase) in property, plant and equipment - net as a result of cash grants primarily under the Recovery Act		$	(145	)		$	403
Net cash provided by financing activities	382				1,058
Increase in property, plant and equipment - net as a result of a settlement/noncash exchange		$	(92	)		$	(70	)
Net decrease in cash and cash equivalents	(114		)		(102		)
Proceeds from differential membership investors used to reduce debt		$	—			$	100
Cash and cash equivalents at beginning of period	329				377
Cash and cash equivalents at end of period	$	215			$	275
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	674			$	884
Sale of hydropower generation plants through assumption of debt by buyer	$	700			$	—

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

910

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions)

(unaudited)



	Common Stock			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
	Shares	Aggregate Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
Balances, December 31, 2016	468	$	5	$	8,948		$	(70	)	$	15,458		$	24,341		$	990		$	25,331
Net income	—	—		—			—			3,223			3,223			29
Issuances of common stock, net of issuance cost of less than $1	2	—		24			—			—			24			—
Share-based payment activity	—	—		77			—			—			77			—
Dividends on common stock	—	—		—			—			(1,382		)	(1,382		)	—
Other comprehensive income	—	—		—			118			—			118			11
Sale of NEER assets to NEP	—	—		—			—			—			—			(17		)
Distributions to noncontrolling interests	—	—		—			—			—			—			(64		)
Other	—	—		(3		)	—			—			(3		)	(26		)
Balances, September 30, 2017	470	$	5	$	9,046		$	48		$	17,299		$	26,398		$	923		$	27,321



	Common Stock			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
	Shares	Aggregate Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Common Shareholders' Equity			Non- controlling Interests			Total Equity
Balances, December 31, 2015	461	$	5	$	8,596		$	(167	)	$	14,140		$	22,574		$	538		$	23,112
Net income	—	—		—			—			1,946			1,946			42
Issuances of common stock, net of issuance cost of less than $1	5	—		523			—			—			523			—
Share-based payment activity	1	—		96			—			—			96			—
Dividends on common stock	—	—		—			—			(1,205		)	(1,205		)	—
Premium on equity units	—	—		(200		)	—			—			(200		)	—
Other comprehensive income (loss)	—	—		—			131			—			131			(19		)
Sale of NEER assets to NEP	—	—		49			—			—			49			440
Distributions to noncontrolling interests	—	—		—			—			—			—			(37		)
Other	—	—		(25		)	—			18			(7		)	(2		)
Balances, September 30, 2016	467	$	5	$	9,039		$	(36	)	$	14,899		$	23,907		$	962		$	24,869

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2016 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)

	Three Months Ended March 31,
				Three Months EndedSeptember 30,							Nine Months EndedSeptember 30,
	2013				2012
				2017				2016			2017			2016
OPERATING REVENUES	$	~~2,188~~		$	$3,477	~~2,224~~		$	3,283		$	9,095		$	8,337
OPERATING EXPENSES
OPERATING EXPENSES (INCOME)
Fuel, purchased power and interchange	~~820~~			1,036	~~935~~			1,045			2,696			2,556
Other operations and maintenance	~~385~~			362	~~436~~			403			1,137			1,203
Depreciation and amortization	~~181~~			704	~~118~~			587			1,514			1,207
Taxes other than income taxes and other	259				254
Taxes other than income taxes and other - net				353				327			975			908
Total operating expenses	1,645				1,743
Total operating expenses - net				2,455				2,362			6,322			5,874
OPERATING INCOME	~~543~~			1,022	~~481~~			921			2,773			2,463
OTHER INCOME (DEDUCTIONS)
Interest expense	~~(102~~		)	(121	~~(104~~	)	)	(114		)	(360		)	(342		)
Allowance for equity funds used during construction	18			20	10			17			55			55
Other - net	1			1	—			—			2			3
Total other deductions - net	~~(83~~		)	(100	~~(94~~	)	)	(97		)	(303		)	(284		)
INCOME BEFORE INCOME TAXES	~~460~~			922	~~387~~			824			2,470			2,179
INCOME TAXES	~~172~~			356	~~148~~			309			933			823
NET INCOME(a)	$	~~288~~		$	$566	~~239~~		$	515		$	1,537		$	1,356

~~__________________________________~~_______________________


(a)	FPL's comprehensive income is the same as reported net income.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

1012

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

(unaudited)

	March 31, 2013				December 31, 2012
			September 30, 2017				December 31, 2016
ELECTRIC UTILITY PLANT
ELECTRIC UTILITY PLANT AND OTHER PROPERTY
Plant in service and other property	$	~~34,371~~	$	46,394	$	~~34,474~~	$	44,966
Nuclear fuel	~~1,138~~		1,260		~~1,190~~		1,308
Construction work in progress	~~2,920~~		3,341		~~2,585~~		2,039
Less accumulated depreciation and amortization	(10,598		)		(10,698		)
Accumulated depreciation and amortization			(12,730		)		(12,304		)
Total electric utility plant - net	27,831				27,551
Total electric utility plant and other property - net			38,265				36,009
CURRENT ASSETS
Cash and cash equivalents	35		8		40		33
Customer receivables, net of allowances of $5 and $7, respectively	646				760
Customer receivables, net of allowances of $5 and $2, respectively			1,212				768
Other receivables	~~529~~		225		~~447~~		148
Materials, supplies and fossil fuel inventory	~~729~~		903		~~727~~		851
Regulatory assets:
Regulatory assets			551				524
Deferred clause and franchise expenses	104				75
Derivatives			7				209
Other	98		176		~~106~~		213
Other	288				131
Total current assets			3,082				2,746
Total current assets	2,429				2,286
OTHER ASSETS
OTHER ASSETS
Special use funds			3,963				3,665
Special use funds	3,064				2,918
Prepaid benefit costs			1,332				1,301
Prepaid benefit costs	1,145				1,135
Regulatory assets ($53 and $107 related to a VIE, respectively)			2,971				1,573
Regulatory assets:
Other			302				207
Securitized storm-recovery costs ($270 and $274 related to a VIE, respectively)	447				461
Total other assets			8,568				6,746
Other	385				351
TOTAL ASSETS			$	49,915			$	45,501
Other	153				151
CAPITALIZATION
Total other assets	5,194				5,016
Common stock (no par value, 1,000 shares authorized, issued and outstanding)			$	1,373			$	1,373
TOTAL ASSETS	$	35,454			$	34,853
Additional paid-in capital			8,291				8,332
CAPITALIZATION
Retained earnings			7,682				6,875
Common stock (no par value, 1,000 shares authorized, issued and outstanding)	$	1,373			$	1,373
Total common shareholder's equity			17,346				16,580
Additional paid-in capital	5,903				5,903
Long-term debt ($74 and $144 related to a VIE, respectively)			10,055				9,705
Retained earnings	5,202				5,254
Total capitalization			27,401				26,285
Total common shareholder's equity	12,478				12,530
CURRENT LIABILITIES
Long-term debt ($357 and $386 related to a VIE, respectively)	8,301				8,329
Commercial paper			1,079				268
Total capitalization	20,779				20,859
Other short-term debt			250				150
CURRENT LIABILITIES
Current maturities of long-term debt			463				367
Commercial paper	405				105
Accounts payable			764				837
Short-term debt	500				—
Customer deposits			446				466
Current maturities of long-term debt	54				453
Accrued interest and taxes			637				240
Accounts payable	618				612
Accrued construction-related expenditures			218				262
Customer deposits	501				503
Regulatory liabilities			145				294
Accrued interest and taxes	295				223
Other			1,576				497
Accrued construction-related expenditures	176				235
Total current liabilities			5,578				3,381
Other	452				495
OTHER LIABILITIES AND DEFERRED CREDITS
Total current liabilities	3,001				2,626
Asset retirement obligations			2,001				1,919
OTHER LIABILITIES AND DEFERRED CREDITS
Deferred income taxes			9,554				8,541
Asset retirement obligations	1,222				1,206
Regulatory liabilities			4,855				4,893
Deferred income taxes	5,895				5,584
Other			526				482
Regulatory liabilities:
Total other liabilities and deferred credits			16,936				15,835
Accrued asset removal costs	1,809				1,950
COMMITMENTS AND CONTINGENCIES
Asset retirement obligation regulatory expense difference	1,927				1,813
TOTAL CAPITALIZATION AND LIABILITIES			$	49,915			$	45,501
Other	362				309
Other	459				506
Total other liabilities and deferred credits	11,674				11,368
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	35,454			$	34,853

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

1113

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)

	Three Months Ended March 31,
			Nine Months EndedSeptember 30,
	2013				2012
			2017				2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	~~288~~	$	1,537	$	~~239~~	$	1,356
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	~~181~~		1,514		~~118~~		1,207
Nuclear fuel and other amortization	34		153		27		167
Deferred income taxes	~~238~~		987		~~265~~		569
Cost recovery clauses and franchise fees	~~(19~~		)61		48		111
Allowance for equity funds used during construction	(18		)		(10		)
Acquisition of purchased power agreement			(258		)		—
Other - net	42				6
Recoverable storm-related costs			(334		)		(17		)
Changes in operating assets and liabilities:
Other - net			(63		)		(15		)
Customer and other receivables	106				53
Changes in operating assets and liabilities:
Materials, supplies and fossil fuel inventory	(2		)		(22		)
Current assets			(578		)		(185		)
Other current assets	(17		)		(21		)
Noncurrent assets			(45		)		12
Other assets	(10		)		(11		)
Current liabilities			507				679
Accounts payable	74				6
Noncurrent liabilities			(13		)		(94		)
Income taxes	(66		)		(117		)
Net cash provided by operating activities			3,468				3,790
Interest and other taxes	81				77
CASH FLOWS FROM INVESTING ACTIVITIES
Other current liabilities	(127		)		(107		)
Capital expenditures			(3,676		)		(2,976		)
Other liabilities	(9		)		7
Nuclear fuel purchases			(104		)		(121		)
Net cash provided by operating activities	776				558
Proceeds from sale or maturity of securities in special use funds			1,241				1,775
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities in special use funds			(1,320		)		(1,836		)
Capital expenditures	(810		)		(1,084		)
Other - net			29				32
Nuclear fuel purchases	(11		)		(28		)
Net cash used in investing activities			(3,830		)		(3,126		)
Proceeds from sale or maturity of securities in special use funds	685				727
CASH FLOWS FROM FINANCING ACTIVITIES
Purchases of securities in special use funds	(701		)		(758		)
Issuances of long-term debt			200				150
Other - net	(1		)		26
Retirements of long-term debt			(73		)		(262		)
Net cash used in investing activities	(838		)		(1,117		)
Net change in commercial paper			811				408
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from other short-term debt			200				500
Retirements of long-term debt	(427		)		(25		)
Repayments of other short-term debt			(2		)		(150		)
Net change in short-term debt	800				507
Dividends to NEE			(800		)		(1,300		)
Capital contribution from NEE	—				40
Other - net			1				13
Dividends to NEE	(340		)		—
Net cash provided by (used in) financing activities			337				(641		)
Other - net	24				17
Net increase (decrease) in cash and cash equivalents			(25		)		23
Net cash provided by financing activities	57				539
Cash and cash equivalents at beginning of period			33				23
Net decrease in cash and cash equivalents	(5		)		(20		)
Cash and cash equivalents at end of period			$	8			$	46
Cash and cash equivalents at beginning of period	40				36
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Cash and cash equivalents at end of period	$	35			$	16
Accrued property additions			$	400			$	475
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Increase in electric utility plant and other property - net as a result of a noncash exchange			$	(96	)		$	—
Accrued property additions	$	339			$	560

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2012~~2016 Form 10-K.

1214

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The accompanying condensed consolidated financial statements should be read in conjunction with the ~~2012~~2016 Form 10-K. In the opinion of NEE and FPL management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. Certain amounts included in the prior year's condensed consolidated financial statements have been reclassified to conform to the current year's presentation. ~~Also,~~ benefits associated with differential membership interests - net have been restated from operating expenses to other income (deductions) to be comparable with the presentation of other financing-related costs. The results of operations for an interim period generally will not give a true indication of results for the year.

1. Employee Retirement Benefits

NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries and has a supplemental executive retirement plan, which includes a non-qualified supplemental defined benefit pension component that provides benefits to a select group of management and highly compensated employees (collectively, pension benefits). In addition to pension benefits, NEE sponsors a contributory postretirement plan for ~~health care and life insurance benefits (~~other benefits) for retirees of NEE and its subsidiaries meeting certain eligibility requirements.

The components of net periodic ~~benefit~~ (income) cost for the plans are as follows:

	Pension Benefits	~~Pension Benefits~~							Postretirement Benefits	~~Other Benefits~~						Pension Benefits						Postretirement Benefits
		Three Months Ended March 31,								Three Months Ended March 31,
	Three Months EndedSeptember 30,								Three Months EndedSeptember 30,							Nine Months EndedSeptember 30,						Nine Months EndedSeptember 30,
		2013				2012				2013				2012
	2017				2016				2017				2016			2017			2016			2017			2016
	(millions)	~~(millions)~~
Service cost	$	$16	18		$	$16	16		$	$—	1		$	$—	1	$	49		$	47		$	1		$	1
Interest cost	21	24			26	25			2	4			3	5		63			78			6			10
Expected return on plan assets	(67	~~(60~~	)	)	(65	~~(60~~	)	)	—	—			—	—		(202		)	(195		)	—			—
Amortization of transition obligation		—				—				—				1
Amortization of prior service cost (benefit)	—				—				(4		)		—			(1		)	1			(6		)	(2		)
Amortization of prior service cost (benefit)		2				1				(1		)		—
Special termination benefits	—				—				—				—			38			—			—			—
Amortization of losses		1				—				1				—
Postretirement benefits settlement	—				—				—				—			—			—			1			—
Net periodic benefit (income) cost at NEE		$	(15	)		$	(18	)		$	5			$	7
Net periodic (income) cost at NEE	$	(30	)		$	(23	)		$	(2	)		$	3		$	(53	)	$	(69	)	$	2		$	9
Net periodic benefit (income) cost at FPL		$	(10	)		$	(11	)		$	3			$	5
Net periodic (income) cost at FPL	$	(20	)		$	(15	)		$	(2	)		$	2		$	(32	)	$	(44	)	$	1		$	7

Amendments to Presentation of Retirement Benefits - In March 2017, the FASB issued an accounting standards update that requires certain changes in classification of components of net periodic pension and postretirement benefit costs within the income statement and allows only the service cost component to be eligible for capitalization. This standards update will be applied using the retrospective approach for presentation of the components of net periodic pension and postretirement benefit costs and the prospective approach for capitalization of service cost. NEE and FPL will apply this standards update on January 1, 2018, and are currently evaluating the impact the adoption will have on their consolidated financial statements.

2. Derivative Instruments

NEE and FPL use derivative instruments (primarily swaps, options, futures and forwards) to manage the ~~commodity~~physical ~~price~~and ~~risk~~financial risks inherent in the purchase and sale of fuel and electricity, as well as interest rate and foreign currency exchange rate risk associated primarily with outstanding and ~~forecasted~~expected future debt issuances and borrowings, and to optimize the value of NEER's power generation and gas infrastructure assets. NEE and FPL do not utilize hedge accounting for their cash flow and fair value hedges.

With respect to commodities related to NEE's competitive energy business, NEER employs risk management procedures to conduct its activities related to optimizing the value of its power generation and gas infrastructure assets, providing full energy and capacity requirements services primarily to distribution utilities, and engaging in power and gas marketing and trading activities to take advantage of expected future favorable price movements and changes in the expected volatility of prices in the energy markets. These risk management activities involve the use of derivative instruments executed within prescribed limits to manage the risk associated with fluctuating commodity prices. Transactions in derivative instruments are executed on recognized exchanges or via the OTC markets, depending on the most favorable credit terms and market execution factors. For NEER's power generation and gas infrastructure assets, derivative instruments are used to hedge ~~the commodity price risk associated with the fuel requirements of the assets, where applicable, as well as to hedge~~ all or a portion of the expected ~~energy~~ output of these assets. These hedges are designed to ~~protect~~reduce ~~NEER~~the ~~against~~effect of adverse changes in the wholesale forward commodity markets associated with ~~its~~NEER's power generation and gas infrastructure assets. With regard to full energy and capacity requirements services, NEER is required to vary the quantity of energy and related services based on the load demands of the ~~customer~~customers served ~~by the distribution utility~~. For this type of transaction, derivative instruments are used to hedge the anticipated electricity quantities required to serve these customers and ~~protect~~reduce ~~against~~the effect of unfavorable changes in the forward energy markets. Additionally, NEER takes positions in ~~the~~ energy markets based on differences between actual forward market levels and management's view of fundamental market conditions, including supply/demand imbalances, changes in traditional flows of energy, changes in short- and long-term weather patterns and anticipated regulatory and legislative outcomes. NEER uses derivative instruments to realize value from these market dislocations, subject to strict risk management limits around market, operational and credit exposure.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Derivative instruments, when required to be marked to market, are recorded on NEE's and FPL's condensed consolidated balance sheets as either an asset or liability measured at fair value. At FPL, substantially all changes in the derivatives' fair value are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel and purchased power cost recovery clause (fuel clause) or the capacity cost recovery clause (capacity clause). For NEE's non-rate regulated operations, predominantly NEER, essentially all changes in the derivatives' fair value for power purchases and sales and trading activities are recognized on a net basis in operating revenues; fuel purchases and sales are recognized on a net basis in fuel, purchased power and interchange expense; and the equity method investees' related activity is recognized in equity in earnings of equity method investees in NEE's condensed consolidated statements of income. Settlement gains and losses are included within the line items in the condensed consolidated statements of income to which they relate. For commodity derivatives, NEE believes that, where offsetting positions exist at the same location for the same time, the transactions are considered to have been netted and therefore physical delivery has been deemed not to have occurred for financial reporting purposes. Transactions for which physical delivery is deemed not to have occurred are presented on a net basis in the condensed consolidated statements of income. Settlements related to derivative instruments are primarily recognized in net cash provided by operating activities in NEE's and FPL's condensed consolidated statements of cash flows.

While most of NEE's derivatives are entered into for the purpose of managing commodity price risk, reducing the impact of volatility in interest rates on outstanding and forecasted debt issuances and managing foreign currency risk, hedge accounting is only applied where specific criteria are met and it is practicable to do so. In order to apply hedge accounting, the transaction must be designated as a hedge and it must be highly effective in offsetting the hedged risk. Additionally, for hedges of forecasted transactions, the forecasted transactions must be probable. For interest rate swaps and foreign currency derivative instruments, generally NEE assesses a hedging instrument's effectiveness by using nonstatistical methods including dollar value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. Hedge effectiveness is tested at the inception of the hedge and on at least a quarterly basis throughout its life. The effective portion of the gain or loss on a derivative instrument designated as a cash flow hedge is reported as a component of other comprehensive income (OCI) and is reclassified into earnings in the period(s) during which the transaction being hedged affects earnings or when it becomes probable that a forecasted transaction being hedged would not occur. The ineffective portion of net unrealized gains (losses) on these hedges is reported in earnings in the current period. At March 31, 2013, NEE's accumulated other comprehensive income (AOCI) included amounts related to interest rate cash flow hedges with expiration dates through December 2030 and foreign currency cash flow hedges with expiration dates through September 2030. Approximately $45 million of net losses included in AOCI at March 31, 2013 is expected to be reclassified into earnings within the next 12 months as the principal and/or interest payments are made. Such amounts assume no change in interest rates, currency exchange rates or scheduled principal payments.

The net fair values of NEE's and FPL's mark-to-market derivative instrument assets (liabilities) are included on the condensed consolidated balance sheets as follows:

	NEE						FPL
	March 31, 2013			December 31, 2012			March 31, 2013				December 31, 2012
	(millions)
Current derivative assets(a)	$	486		$	517		$	136		(b)	$	4		(b)
Noncurrent derivative assets(c)	902			920			9			(d)	1			(d)
Current derivative liabilities(e)	(419		)	(430		)	(1		)	(f)	(20		)	(f)
Noncurrent derivative liabilities	(391		)	(587		)	—				—
Total mark-to-market derivative instrument assets (liabilities)	$	578		$	420		$	144			$	(15	)

————————————

(a) At March 31, 2013 and December 31, 2012, NEE's balances reflect the netting of approximately $33 million and $43 million (none at FPL), respectively, in margin cash collateral received from counterparties.

(b) Included in current other assets on FPL's condensed consolidated balance sheets.

(c) At March 31, 2013 and December 31, 2012, NEE's balances reflect the netting of approximately $130 million and $159 million (none at FPL), respectively, in margin cash collateral received from counterparties.

(d) Included in noncurrent other assets on FPL's condensed consolidated balance sheets.

(e) At March 31, 2013 and December 31, 2012, NEE's balances reflect the netting of approximately $43 million and $79 million (none at FPL), respectively, in margin cash collateral provided to counterparties.

(f) Included in current other liabilities on FPL's condensed consolidated balance sheets.

At March 31, 2013 and December 31, 2012, NEE had approximately $22 million and $30 million (none at FPL), respectively, in margin cash collateral received from counterparties that was not offset against derivative assets. These amounts are included in current other liabilities on NEE's condensed consolidated balance sheets. Additionally, at March 31, 2013 and December 31, 2012, NEE had approximately $39 million and $49 million (none at FPL), respectively, in margin cash collateral provided to counterparties that was not offset against derivative liabilities. These amounts are included in current other assets on NEE's condensed consolidated balance sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

As discussed above, NEE uses derivative instruments to, among other things, manage its commodity price risk, interest rate risk and foreign currency exchange rate risk. The table above presents NEE's and FPL's net derivative positions at March 31, 2013 and December 31, 2012, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral (see Note 3 - Recurring Fair Value Measurements for netting information). However, disclosure rules require that the following tables be presented on a gross basis.

The fair values of NEE's derivatives designated as hedging instruments for accounting purposes (none at FPL) are presented below as gross asset and liability values, as required by disclosure rules.

	March 31, 2013				December 31, 2012
	DerivativeAssets		DerivativeLiabilities		DerivativeAssets		DerivativeLiabilities
	(millions)
Interest rate swaps:
Current derivative assets	$	30	$	—	$	30	$	—
Current derivative liabilities	—		187		—		104
Noncurrent derivative assets	43		—		46		—
Noncurrent derivative liabilities	—		97		—		283
Foreign currency swaps:
Current derivative liabilities	—		4		—		5
Noncurrent derivative liabilities	—		34		—		28
Total	$	73	$	322	$	76	$	420

Gains (losses) related to NEE's cash flow hedges are recorded in NEE's condensed consolidated financial statements (none at FPL) as follows:

	Three Months Ended March 31,
	2013											2012
		InterestRateSwaps			ForeignCurrencySwaps				Total			CommodityContracts		InterestRateSwaps			ForeignCurrencySwap				Total
	(millions)
Gains (losses) recognized in OCI		$	100		$	(8	)		$	92		$	—	$	1		$	(10	)		$	(9	)
Gains (losses) reclassified from AOCI to net income(a)		$	(15	)	$	(19	)	(b)	$	(34	)	$	1	$	(16	)	$	(10	)	(b)	$	(25	)

(a) Included in operating revenues for commodity contracts and interest expense for interest rate swaps.

(b) Loss of approximately $1 million is included in interest expense and the balance is included in other - net.

For the three months ended March 31, 2013, NEE recorded a loss of approximately $9 million on six fair value hedges which resulted in a corresponding decrease in the related debt. For the three months ended March 31, 2012, NEE recorded a gain of approximately $1 million on six fair value hedges which resulted in a corresponding increase in the related debt.

The fair values of NEE's and FPL's derivatives not designated as hedging instruments for accounting purposes are presented below as gross asset and liability values, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting arrangements and would not be contractually settled on a gross basis.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

	March 31, 2013										December 31, 2012
	NEE				FPL						NEE				FPL
	DerivativeAssets		DerivativeLiabilities		DerivativeAssets			DerivativeLiabilities			DerivativeAssets		DerivativeLiabilities		DerivativeAssets			DerivativeLiabilities
	(millions)
Commodity contracts:
Current derivative assets	$	862	$	373	$	137	(a)	$	1	(a)	$	851	$	321	$	4	(a)	$	—
Current derivative liabilities	1,331		1,598		—			1		(b)	1,441		1,838		12		(b)	32		(b)
Noncurrent derivative assets	1,682		693		9		(c)	—			1,748		715		1		(c)	—
Noncurrent derivative liabilities	227		426		—			—			192		438		—			—
Foreign currency swap:
Current derivative liabilities	—		4		—			—			—		3		—			—
Noncurrent derivative liabilities	—		61		—			—			—		30		—			—
Total	$	4,102	$	3,155	$	146		$	2		$	4,232	$	3,345	$	17		$	32

Derivative instruments, when required to be marked to market, are recorded on NEE's and FPL's condensed consolidated balance sheets as either an asset or liability measured at fair value. At FPL, substantially all changes in the derivatives' fair value are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel clause. For NEE's non-rate regulated operations, predominantly NEER, essentially all changes in the derivatives' fair value for power purchases and sales, fuel sales and trading activities are recognized on a net basis in operating revenues; fuel purchases used in the production of electricity are recognized in fuel, purchased power and interchange expense; and the equity method investees' related activity is recognized in equity in earnings of equity method investees in NEE's condensed consolidated statements of income. Settlement gains and losses are included within the line items in the condensed consolidated statements of income to which they relate. Transactions for which physical delivery is deemed not to have occurred are presented on a net basis in the condensed consolidated statements of income. For commodity derivatives, NEE believes that, where offsetting positions exist at the same location for the same time, the transactions are considered to have been netted and therefore physical delivery has been deemed not to have occurred for financial reporting purposes. Settlements related to derivative instruments are primarily recognized in net cash provided by operating activities in NEE's and FPL's condensed consolidated statements of cash flows.

~~(a)~~For ~~Included~~interest rate and foreign currency derivative instruments, all changes in ~~current~~the ~~other~~derivatives' ~~assets~~fair value, as well as the transaction gain or loss on ~~FPL~~foreign denominated debt, are recognized in interest expense in NEE's condensed consolidated ~~balance~~statements ~~sheets~~of income. In addition, for the nine months ended September 30, 2017 and 2016, NEE reclassified approximately $2 million ($1 million after-tax) and $17 million ($10 million after tax), respectively, from AOCI to interest expense primarily because it became probable that related future transactions being hedged would not occur. At September 30, 2017, NEE's AOCI included amounts related to discontinued interest rate cash flow hedges with expiration dates through March 2035 and foreign currency cash flow hedges with expiration dates through September 2030. Approximately $27 million of net losses included in AOCI at September 30, 2017 is expected to be reclassified into earnings within the next 12 months as the principal and/or interest payments are made. Such amounts assume no change in scheduled principal payments.

~~(b)~~Fair ~~Included~~Value inof ~~current~~Derivative ~~other~~Instruments ~~liabilities~~- onThe tables below present NEE's and FPL's gross derivative positions at September 30, 2017 and December 31, 2016, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral (see Note 3 - Recurring Fair Value Measurements for netting information), as well as the location of the net derivative position on the condensed consolidated balance sheets.



	September 30, 2017
	Gross Basis				Net Basis
	Assets		Liabilities		Assets		Liabilities
	(millions)
NEE:
Commodity contracts	$	4,081	$	2,546	$	1,885	$	403
Interest rate contracts	76		299		92		315
Foreign currency contracts	—		42		11		53
Total fair values	$	4,157	$	2,887	$	1,988	$	771

FPL:
Commodity contracts	$	11	$	7	$	7	$	3

Net fair value by NEE balance sheet line item:
Current derivative assets^(a)					$	442
Noncurrent derivative assets^(b)					1,546
Current derivative liabilities							$	257
Noncurrent derivative liabilities^(c)							514
Total derivatives					$	1,988	$	771

Net fair value by FPL balance sheet line item:
Current derivative assets					$	7
Current other liabilities							$	3
Total derivatives					$	7	$	3

~~Gains (losses) related to NEE's derivatives not designated as hedging instruments are recorded in NEE's condensed consolidated statements of income (none at FPL) as follows:~~———————————————

	Three Months Ended March 31,
	2013			2012
	(millions)
Commodity contracts:(a)
Operating revenues	$	(42	)	$	190
Fuel, purchased power and interchange	3			(11		)
Foreign currency swap - other - net	(32		)	(37		)
Total	$	(71	)	$	142


(a)	Reflects the netting of approximately $74 million in margin cash collateral received from counterparties.

~~————————————~~(b) Reflects the netting of approximately $12 million in margin cash collateral received from counterparties.

(ac) ~~For~~Reflects the ~~three~~netting ~~months~~of ~~ended March 31, 2013 and 2012, FPL recorded~~ approximately $~~144~~33 million ofin ~~gains~~margin ~~and~~cash ~~$252~~collateral ~~million~~paid ~~of losses, respectively, related~~ to ~~commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets~~counterparties.

The following table represents net notional volumes associated with derivative instruments that are required to be reported at fair value in NEE's and FPL's condensed consolidated financial statements. The table includes significant volumes of transactions that have minimal exposure to commodity price changes because they are variably priced agreements. The table does not present a complete picture of NEE's and FPL's overall net economic exposure because NEE and FPL do not use derivative instruments to hedge all of their commodity exposures. At March 31, 2013, NEE and FPL had derivative commodity contracts for the following net notional volumes:

Commodity Type	NEE			FPL
	(millions)
Power	(118	)	mwh(a)	—
Natural gas	1,262		mmbtu(b)	846	mmbtu(b)
Oil	(2	)	barrels	—

————————————

(a) Megawatt-hours

(b) One million British thermal units

At March 31, 2013, NEE had interest rate contracts with a notional amount totaling approximately $7.2 billion and foreign currency swaps with a notional amount totaling approximately $662 million.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Certain of NEE's and FPL's derivative instruments contain credit-risk-related contingent features including, among other things, the requirement to maintain an investment grade credit rating from specified credit rating agencies and certain financial ratios, as well as credit-related cross-default and material adverse change triggers. At March 31, 2013, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $1.8 billion ($3 million for FPL).



	December 31, 2016
	Gross Basis				Net Basis
	Assets		Liabilities		Assets		Liabilities
	(millions)
NEE:
Commodity contracts	$	4,590	$	2,968	$	1,938	$	483
Interest rate contracts	288		284		296		292
Foreign currency contracts	1		106		1		106
Total fair values	$	4,879	$	3,358	$	2,235	$	881

FPL:
Commodity contracts	$	212	$	4	$	209	$	1

Net fair value by NEE balance sheet line item:
Current derivative assets^(a)					$	885
Noncurrent derivative assets^(b)					1,350
Current derivative liabilities							$	404
Noncurrent derivative liabilities							477
Total derivatives					$	2,235	$	881

Net fair value by FPL balance sheet line item:
Current derivative assets					$	209
Current other liabilities							$	1
Total derivatives					$	209	$	1

If the credit-risk-related contingent features underlying these agreements and other commodity-related contracts were triggered, NEE or FPL could be required to post collateral or settle contracts according to contractual terms which generally allow netting of contracts in offsetting positions. Certain contracts contain multiple types of credit-related triggers. To the extent these contracts contain a credit ratings downgrade trigger, the maximum exposure is included in the following credit ratings collateral posting requirements. If FPL's and NEECH's credit ratings were downgraded to BBB/Baa2 (a two level downgrade for FPL and a one level downgrade for NEECH from the current lowest applicable rating), NEE would be required to post collateral such that the total posted collateral would be approximately $300 million ($20 million at FPL). If FPL's and NEECH's credit ratings were downgraded to below investment grade, NEE would be required to post additional collateral such that the total posted collateral would be approximately $2.1 billion ($0.5 billion at FPL). Some contracts at NEE, including some FPL contracts, do not contain credit ratings downgrade triggers, but do contain provisions that require certain financial measures be maintained and/or have credit-related cross-default triggers. In the event these provisions were triggered, NEE could be required to post additional collateral of up to approximately $750 million ($100 million at FPL).———————————————

~~Collateral~~(a) ~~may~~Reflects ~~be posted in~~ the ~~form~~netting of ~~cash or credit support. At March 31, 2013, NEE had posted~~ approximately $8096 million ~~(none at FPL)~~ in ~~the~~margin ~~form~~cash ~~of letters of credit, related to derivatives, in the normal course of business which could be applied toward the~~ collateral ~~requirements~~received ~~described~~from ~~above~~counterparties. FPL and NEECH have credit facilities in excess of the collateral requirements described above that would be available to support, among other things, derivative activities. Under the terms of the credit facilities, maintenance of a specific credit rating is not a condition to drawing on these credit facilities, although there are other conditions to drawing on these credit facilities.

~~Additionally,~~(b) ~~some~~Reflects ~~contracts contain certain adequate assurance provisions where a counterparty may demand additional collateral based on subjective events and/or conditions. Due to~~ the ~~subjective~~netting ~~nature~~ of ~~these~~approximately ~~provisions,~~$71 ~~NEE~~million ~~and FPL are unable to determine an exact value for these items and they are not included~~ in ~~any~~margin ofcash ~~the~~collateral ~~quantitative~~received ~~disclosures~~from ~~above~~counterparties.

3At September 30, 2017 and December 31, 2016, NEE had approximately $13 million and $5 million (none at FPL), respectively, in margin cash collateral received from counterparties that was not offset against derivative assets in the above presentation. ~~Fair~~ ~~Value~~These ~~Measurements~~amounts are included in current other liabilities on NEE's condensed consolidated balance sheets. Additionally, at September 30, 2017 and December 31, 2016, NEE had approximately $177 million and $129 million (none at FPL), respectively, in margin cash collateral paid to counterparties that was not offset against derivative assets or liabilities in the above presentation. These amounts are included in current other assets on NEE's condensed consolidated balance sheets.

~~NEE~~Income ~~and~~Statement ~~FPL~~Impact ~~use several different valuation techniques to measure the fair value~~ of ~~assets~~Derivative ~~and~~Instruments ~~liabilities,~~- ~~relying~~Gains ~~primarily~~(losses) onrelated ~~the~~to ~~market~~NEE's ~~approach~~derivatives ~~of using prices and other market information for identical and/or comparable assets and liabilities for those assets and liabilities that~~ are ~~measured~~recorded atin ~~fair value on a recurring basis.~~ NEE's ~~and~~condensed ~~FPL's~~consolidated ~~assessment~~statements of ~~the~~income ~~significance~~as offollows: any particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels. Non-performance risk, including the consideration of a credit valuation adjustment, is also considered in the determination of fair value for all assets and liabilities measured at fair value.

Cash Equivalents - Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. NEE and FPL primarily hold investments in money market funds. The fair value of these funds is calculated using current market prices.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(millions)
Commodity contracts:^(a)
Operating revenues	$	114		$	264		$	538		$	502
Fuel, purchased power and interchange	—			1			—			(1		)
Foreign currency contracts - interest expense	(4		)	15			53			96
Foreign currency contracts - other - net	(2		)	1			(5		)	(2		)
Interest rate contracts - interest expense	(41		)	(58		)	(232		)	(515		)
Losses reclassified from AOCI to interest expense:
Interest rate contracts	(13		)	(18		)	(36		)	(71		)
Foreign currency contracts	(1		)	(3		)	(80		)	(9		)
Total	$	53		$	202		$	238		$	—

Special Use Funds and Other Investments - NEE and FPL hold primarily debt and equity securities directly, as well as indirectly through commingled funds. Substantially all directly held equity securities are valued at their quoted market prices. For directly held debt securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue of each security. Commingled funds, which are similar to mutual funds, are maintained by banks or investment companies and hold certain investments in accordance with a stated set of objectives. The fair value of commingled funds is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market.———————————————

~~Derivative~~(a) ~~Instruments~~For -the ~~NEE~~three and ~~FPL~~nine ~~measure~~months ~~the~~ended ~~fair~~September ~~value~~30, of2017, ~~commodity~~FPL ~~contracts~~recorded ~~using~~losses ~~prices~~of ~~observed~~approximately on$12 ~~commodities~~million ~~exchanges~~ and in$164 ~~the~~million, ~~OTC markets~~respectively, orrelated ~~through~~to ~~the~~commodity ~~use~~contracts ofas ~~industry-standard~~regulatory ~~valuation~~assets ~~techniques,~~on ~~such~~its ascondensed ~~option~~consolidated ~~modeling~~balance orsheets. ~~discounted~~For ~~cash~~the ~~flows~~three ~~techniques,~~and ~~incorporating~~nine ~~both~~months ~~observable~~ended ~~and~~September ~~unobservable~~30, ~~valuation~~2016, ~~inputs. The~~FPL ~~resulting~~recorded ~~measurements~~approximately ~~are~~$35 ~~the~~million ~~best estimate~~ of ~~fair~~losses ~~value~~and as$35 ~~represented~~million byof ~~the~~gains, ~~transfer~~respectively, ofrelated ~~the~~to ~~asset~~commodity orcontracts ~~liability~~as ~~through~~regulatory anassets ~~orderly~~and ~~transaction~~regulatory inliabilities ~~the~~on ~~marketplace~~its atcondensed ~~the~~consolidated ~~measurement~~balance ~~date~~sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~Most~~Notional ~~exchange~~Volumes of Derivative Instruments -~~traded~~ The following table represents net notional volumes associated with derivative ~~assets~~instruments that are required to be reported at fair value in NEE's and ~~liabilities~~FPL's ~~are~~condensed ~~valued~~consolidated ~~directly~~financial ~~using~~statements. ~~unadjusted~~The ~~quoted~~table ~~prices~~includes significant volumes of transactions that have minimal exposure to commodity price changes because they are variably priced agreements. ~~For~~ ~~exchange-traded~~These ~~derivative~~volumes ~~assets~~are ~~and~~only ~~liabilities~~an ~~where~~indication of the ~~principal~~commodity ~~market~~exposure that is ~~deemed~~managed tothrough bethe ~~inactive~~use ~~based~~of onderivatives. ~~average~~They ~~daily~~do ~~volumes~~not represent net physical asset positions or non-derivative positions and ~~open~~their ~~interest~~hedges, nor do they represent NEE’s and FPL’s net economic exposure, but only the ~~measurement~~net isnotional ~~established~~derivative ~~using~~positions ~~settlement~~that ~~prices~~fully ~~from~~or partially hedge the ~~exchanges,~~related asset positions. NEE and ~~therefore~~FPL ~~considered~~had toderivative becommodity ~~valued~~contracts ~~using~~for ~~significant~~the ~~other~~following ~~observable~~net ~~inputs.~~notional volumes:

NEE and FPL also enter into OTC commodity contract derivatives. The majority of these contracts are transacted at liquid trading points, and the prices for these contracts are verified using quoted prices in active markets from exchanges, brokers or pricing services for similar contracts. In instances where the reference markets are deemed to be inactive or do not have transactions for a similar contract, the derivative assets and liabilities may be valued using significant other observable inputs and potentially significant unobservable inputs. In such instances, the valuation for these contracts is established using techniques including extrapolation from or interpolation between actively traded contracts, or estimated basis adjustments from liquid trading points.



	September 30, 2017					December 31, 2016
Commodity Type	NEE			FPL		NEE			FPL
	(millions)
Power	(107	)	MWh	—		(84	)	MWh	—
Natural gas	312		MMBtu	255	MMBtu	1,002		MMBtu	618	MMBtu
Oil	(3	)	barrels	—		(7	)	barrels	—

~~NEE,~~At ~~through NEER~~September 30, ~~also~~2017 ~~enters~~and ~~into full requirements contracts~~December 31, ~~which~~2016, inNEE ~~most~~had ~~cases,~~interest ~~meet~~rate ~~the~~contracts ~~definition~~with ofnotional ~~derivatives~~amounts ~~and~~totaling ~~are~~approximately ~~measured at fair value~~$13. ~~These~~6 ~~contracts~~billion ~~typically have one or more inputs that are not observable~~ and ~~are significant to the valuation of the contract~~$15. In1 ~~addition~~billion, ~~certain~~respectively, ~~exchange~~ and ~~non-exchange~~foreign ~~traded~~currency ~~derivative~~contracts ~~options~~with atnotional ~~NEE~~amounts ~~have~~totaling ~~one~~approximately or$714 ~~more~~million ~~significant~~and ~~inputs~~$705 ~~that are not observable~~million, ~~and are valued using industry-standard option models~~respectively.

InCredit-Risk-Related ~~all~~Contingent ~~cases~~Features ~~where~~- ~~NEE~~Certain ~~and~~derivative ~~FPL~~instruments ~~use~~contain ~~significant~~credit-risk-related ~~unobservable~~contingent ~~inputs~~features ~~for~~including, among other things, the ~~valuation~~requirement ofto amaintain ~~commodity~~an ~~contract,~~investment ~~consideration~~grade iscredit ~~given~~rating tofrom ~~the~~specified ~~assumptions~~credit ~~that~~rating ~~market~~agencies ~~participants~~and ~~would~~certain ~~use~~financial inratios, ~~valuing~~as ~~the~~well ~~asset~~as orcredit-related ~~liability. This~~cross-default ~~consideration~~and ~~includes,~~material ~~but~~adverse ischange ~~not~~triggers. ~~limited~~At toSeptember 30, ~~assumptions~~2017 ~~about~~and ~~market~~December 31, ~~liquidity~~2016, ~~volatility~~the ~~and~~aggregate ~~contract~~fair ~~duration~~value asof ~~more~~NEE's ~~fully~~derivative ~~described~~instruments ~~below~~with incredit-risk-related ~~Significant~~contingent ~~Unobservable~~features ~~Inputs~~that ~~Used~~were in ~~Recurring~~a ~~Fair~~liability ~~Value~~position ~~Measurements~~was approximately $1.1 billion ($7 million for FPL) and $1.3 billion ($5 million for FPL), respectively.

If the credit-risk-related contingent features underlying these derivative agreements were triggered, certain subsidiaries of NEE, ~~uses~~including ~~interest~~FPL, ~~rate~~could ~~and~~be ~~foreign~~required ~~currency~~to ~~swaps~~post collateral or settle contracts according to ~~mitigate~~contractual ~~and~~terms ~~adjust~~which ~~interest~~generally ~~rate~~allow ~~and~~netting ~~foreign~~of ~~currency~~contracts ~~exposure~~in offsetting positions. Certain derivative contracts contain multiple types of credit-related totriggers. ~~certain~~To ~~outstanding~~the extent these contracts contain a credit ratings downgrade trigger, the maximum exposure is included in the following credit ratings collateral posting requirements. If FPL's and ~~forecasted~~NEECH's ~~debt~~credit ~~issuances~~ratings were downgraded to BBB/Baa2 (a two level downgrade for FPL and ~~borrowings.~~ a one level downgrade for NEECH from the current lowest applicable rating), applicable NEE ~~estimates~~subsidiaries would be required to post collateral such that the ~~fair~~total ~~value~~posted collateral would be approximately $130 million (none at FPL) as of ~~these~~September 30, ~~derivatives~~2017 ~~using~~and a$110 ~~discounted~~million ~~cash~~(none ~~flows~~at ~~valuation~~FPL) ~~technique~~as ~~based~~of onDecember 31, 2016. If FPL's and NEECH's credit ratings were downgraded to below investment grade, applicable NEE subsidiaries would be required to post additional collateral such that the ~~net~~total ~~amount~~posted collateral would be approximately $1.1 billion ($40 million at FPL) as of ~~estimated~~September 30, ~~future~~2017 ~~cash~~and ~~inflows~~$990 million ($10 million at FPL) as of December 31, 2016. Some derivative contracts do not contain credit ratings downgrade triggers, but do contain provisions that require certain financial measures be maintained and/or ~~outflows~~have credit-related tocross-default triggers. In the ~~swap~~event ~~agreements~~these provisions were triggered, applicable NEE subsidiaries could be required to post additional collateral of up to approximately $220 million ($140 million at FPL) as of September 30, 2017 and $225 million ($115 million at FPL) as of December 31, 2016.

~~Recurring~~Collateral ~~Fair~~related ~~Value~~to ~~Measurements~~derivatives -may be posted in the form of cash or credit support in the normal course of business. At September 30, 2017 and December 31, 2016, applicable NEE's subsidiaries have posted approximately $2 million (none at FPL) and $1 million (none at FPL's), ~~financial~~respectively, ~~assets~~in cash and ~~liabilities~~$26 million (none at FPL) and $30 million (none at FPL), respectively, in the form of letters of credit each of which could be applied toward the collateral requirements described above. FPL and NEECH have credit facilities generally in excess of the collateral requirements described above that would be available to support, among other ~~fair~~things, ~~value~~derivative ~~measurements~~activities. ~~made~~Under onthe terms of the credit facilities, maintenance of a ~~recurring~~specific ~~basis~~credit byrating ~~fair~~is ~~value~~not ~~hierarchy~~a ~~level~~condition to drawing on these credit facilities, although there are asother ~~follows:~~conditions to drawing on these credit facilities.

Additionally, some contracts contain certain adequate assurance provisions where a counterparty may demand additional collateral based on subjective events and/or conditions. Due to the subjective nature of these provisions, NEE and FPL are unable to determine an exact value for these items and they are not included in any of the quantitative disclosures above.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

	March 31, 2013
	Quoted Prices inActive Markets forIdentical Assetsor Liabilities(Level 1)		SignificantOtherObservableInputs(Level 2)			SignificantUnobservableInputs(Level 3)		Netting(a)			Total
	(millions)
Assets:
Cash equivalents:
NEE - equity securities	$	3	$	—		$	—	$	—		$	3
Special use funds:
NEE:
Equity securities	$	965	$	1,370	(b)	$	—	$	—		$	2,335
U.S. Government and municipal bonds	$	537	$	119		$	—	$	—		$	656
Corporate debt securities	$	—	$	576		$	—	$	—		$	576
Mortgage-backed securities	$	—	$	518		$	—	$	—		$	518
Other debt securities	$	19	$	29		$	—	$	—		$	48
FPL:
Equity securities	$	219	$	1,233	(b)	$	—	$	—		$	1,452
U.S. Government and municipal bonds	$	456	$	107		$	—	$	—		$	563
Corporate debt securities	$	—	$	394		$	—	$	—		$	394
Mortgage-backed securities	$	—	$	436		$	—	$	—		$	436
Other debt securities	$	19	$	19		$	—	$	—		$	38
Other investments:
NEE:
Equity securities	$	43	$	—		$	—	$	—		$	43
U.S. Government and municipal bonds	$	5	$	—		$	—	$	—		$	5
Corporate debt securities	$	—	$	60		$	—	$	—		$	60
Mortgage-backed securities	$	—	$	45		$	—	$	—		$	45
Other	$	5	$	6		$	—	$	—		$	11
Derivatives:
NEE:
Commodity contracts	$	1,083	$	2,203		$	816	$	(2,787	)	$	1,315	(c)
Interest rate swaps	$	—	$	73		$	—	$	—		$	73	(c)
FPL - commodity contracts	$	—	$	142		$	4	$	(1	)	$	145	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,122	$	1,674		$	294	$	(2,667	)	$	423	(c)
Interest rate swaps	$	—	$	284		$	—	$	—		$	284	(c)
Foreign currency swaps	$	—	$	103		$	—	$	—		$	103	(c)
FPL - commodity contracts	$	—	$	—		$	2	$	(1	)	$	1	(c)

3. Fair Value Measurements

The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (aLevel 1) ~~Includes~~or ~~the~~pricing ~~effect~~inputs ofthat ~~the~~are ~~contractual~~observable ~~ability~~(Level 2) whenever that information is available and using unobservable inputs (Level 3) to ~~settle~~estimate ~~contracts~~fair ~~under~~value ~~master~~only ~~netting~~when ~~arrangements~~relevant observable inputs are not available. NEE and ~~margin~~FPL ~~cash~~use ~~collateral~~several ~~payments~~different valuation techniques to measure the fair value of assets and ~~receipts.~~liabilities, ~~NEE~~relying ~~also~~primarily ~~has~~on ~~contract~~the ~~settlement~~market ~~receivable~~approach of using prices and ~~payable~~other ~~balances~~market information for identical and/or comparable assets and liabilities for those assets and liabilities that are ~~subject~~measured at fair value on a recurring basis. NEE's and FPL's assessment of the significance of any particular input to the ~~master~~fair ~~netting~~value ~~arrangements~~measurement ~~but~~requires ~~are~~judgment ~~not~~and ~~offset~~may affect placement within the ~~condensed~~fair ~~consolidated~~value ~~balance~~hierarchy ~~sheets~~levels. ~~and~~Non-performance ~~are~~risk, ~~recorded~~including the consideration of a credit valuation adjustment, is also considered in ~~customer~~the ~~receivables~~determination -of ~~net~~fair value for all assets and ~~accounts~~liabilities ~~payable,~~measured ~~respectively~~at fair value.

~~(b)~~Cash AtEquivalents ~~NEE,~~and ~~approximately~~Restricted ~~$1,350~~Cash ~~million~~- ~~($1,216~~NEE ~~million~~and at FPL) ~~are~~hold ~~invested~~investments in ~~commingled~~money market funds. ~~whose~~The ~~underlying~~fair ~~investments~~value ~~would~~of bethese ~~Level~~funds 1is ifestimated ~~those~~using ~~investments~~a ~~were~~market ~~held~~approach ~~directly~~based byon ~~NEE~~current orobservable ~~FPL~~market prices.

~~(c)~~Special ~~See~~Use ~~Note~~Funds 2and ~~for~~Other aInvestments ~~reconciliation~~- NEE and FPL hold primarily debt and equity securities directly, as well as indirectly through commingled funds. Substantially all directly held equity securities are valued at their quoted market prices. For directly held debt securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue of ~~net~~each ~~derivatives~~security. Commingled funds, which are similar to ~~NEE's~~mutual funds, are maintained by banks or investment companies and ~~FPL's~~hold ~~condensed~~certain ~~consolidated~~investments ~~balance~~in ~~sheets~~accordance with a stated set of objectives. The fair value of commingled funds is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market.

Derivative Instruments - NEE and FPL measure the fair value of commodity contracts using a combination of market and income approaches utilizing prices observed on commodities exchanges and in the OTC markets, or through the use of industry-standard valuation techniques, such as option modeling or discounted cash flows techniques, incorporating both observable and unobservable valuation inputs. The resulting measurements are the best estimate of fair value as represented by the transfer of the asset or liability through an orderly transaction in the marketplace at the measurement date.

Most exchange-traded derivative assets and liabilities are valued directly using unadjusted quoted prices. For exchange-traded derivative assets and liabilities where the principal market is deemed to be inactive based on average daily volumes and open interest, the measurement is established using settlement prices from the exchanges, and therefore considered to be valued using other observable inputs.

NEE, through its subsidiaries, including FPL, also enters into OTC commodity contract derivatives. The majority of these contracts are transacted at liquid trading points, and the prices for these contracts are verified using quoted prices in active markets from exchanges, brokers or pricing services for similar contracts.

NEE, through NEER, also enters into full requirements contracts, which, in most cases, meet the definition of derivatives and are measured at fair value. These contracts typically have one or more inputs that are not observable and are significant to the valuation of the contract. In addition, certain exchange and non-exchange traded derivative options at NEE have one or more significant inputs that are not observable, and are valued using industry-standard option models.

In all cases where NEE and FPL use significant unobservable inputs for the valuation of a commodity contract, consideration is given to the assumptions that market participants would use in valuing the asset or liability. The primary input to the valuation models for commodity contracts is the forward commodity curve for the respective instruments. Other inputs include, but are not limited to, assumptions about market liquidity, volatility, correlation and contract duration as more fully described below in Significant Unobservable Inputs Used in Recurring Fair Value Measurements. In instances where the reference markets are deemed to be inactive or do not have transactions for a similar contract, the derivative assets and liabilities may be valued using significant other observable inputs and potentially significant unobservable inputs. In such instances, the valuation for these contracts is established using techniques including extrapolation from or interpolation between actively traded contracts, or estimated basis adjustments from liquid trading points. NEE and FPL regularly evaluate and validate the inputs used to determine fair value by a number of methods, consisting of various market price verification procedures, including the use of pricing services and multiple broker quotes to support the market price of the various commodities. In all cases where there are assumptions and models used to generate inputs for valuing derivative assets and liabilities, the review and verification of the assumptions, models and changes to the models are undertaken by individuals that are independent of those responsible for estimating fair value.

NEE uses interest rate contracts and foreign currency contracts to mitigate and adjust interest rate and foreign currency exchange exposure related primarily to certain outstanding and expected future debt issuances and borrowings when deemed appropriate based on market conditions or when required by financing agreements. NEE estimates the fair value of these derivatives using an income approach based on a discounted cash flows valuation technique utilizing the net amount of estimated future cash inflows and outflows related to the agreements.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

	December 31, 2012
	Quoted Prices inActive Markets forIdentical Assetsor Liabilities(Level 1)		SignificantOtherObservableInputs(Level 2)			SignificantUnobservableInputs(Level 3)		Netting(a)			Total
	(millions)
Assets:
Cash equivalents:
NEE - equity securities	$	23	$	—		$	—	$	—		$	23
FPL - equity securities	$	5	$	—		$	—	$	—		$	5
Special use funds:
NEE:
Equity securities	$	914	$	1,240	(b)	$	—	$	—		$	2,154
U.S. Government and municipal bonds	$	451	$	143		$	—	$	—		$	594
Corporate debt securities	$	—	$	572		$	—	$	—		$	572
Mortgage-backed securities	$	—	$	560		$	—	$	—		$	560
Other debt securities	$	15	$	26		$	—	$	—		$	41
FPL:
Equity securities	$	217	$	1,118	(b)	$	—	$	—		$	1,335
U.S. Government and municipal bonds	$	390	$	119		$	—	$	—		$	509
Corporate debt securities	$	—	$	397		$	—	$	—		$	397
Mortgage-backed securities	$	—	$	475		$	—	$	—		$	475
Other debt securities	$	16	$	16		$	—	$	—		$	32
Other investments:
NEE:
Equity securities	$	7	$	—		$	—	$	—		$	7
U.S. Government and municipal bonds	$	6	$	—		$	—	$	—		$	6
Corporate debt securities	$	—	$	53		$	—	$	—		$	53
Mortgage-backed securities	$	—	$	47		$	—	$	—		$	47
Other	$	5	$	6		$	—	$	—		$	11
Derivatives:
NEE:
Commodity contracts	$	1,187	$	2,251		$	794	$	(2,871	)	$	1,361	(c)
Interest rate swaps	$	—	$	76		$	—	$	—		$	76	(c)
FPL - commodity contracts	$	—	$	14		$	3	$	(12	)	$	5	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,240	$	1,844		$	228	$	(2,748	)	$	564	(c)
Interest rate swaps	$	—	$	387		$	—	$	—		$	387	(c)
Foreign currency swaps	$	—	$	66		$	—	$	—		$	66	(c)
FPL - commodity contracts	$	—	$	31		$	1	$	(12	)	$	20	(c)

Recurring Fair Value Measurements - NEE's and FPL's financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:

(a) Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts. NEE also has contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the condensed consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.



	September 30, 2017
	Level 1		Level 2			Level 3		Netting^(a)			Total
	(millions)
Assets:
Cash equivalents and restricted cash:^(b)
NEE - equity securities	$	999	$	—		$	—				$	999
FPL - equity securities	$	112	$	—		$	—				$	112
Special use funds:^(c)
NEE:
Equity securities	$	1,590	$	1,695	^(d)	$	—				$	3,285
U.S. Government and municipal bonds	$	404	$	138		$	—				$	542
Corporate debt securities	$	1	$	772		$	—				$	773
Mortgage-backed securities	$	—	$	452		$	—				$	452
Other debt securities	$	—	$	126		$	—				$	126
FPL:
Equity securities	$	442	$	1,545	^(d)	$	—				$	1,987
U.S. Government and municipal bonds	$	301	$	115		$	—				$	416
Corporate debt securities	$	—	$	542		$	—				$	542
Mortgage-backed securities	$	—	$	343		$	—				$	343
Other debt securities	$	—	$	114		$	—				$	114
Other investments:
NEE:
Equity securities	$	25	$	10		$	—				$	35
Debt securities	$	32	$	109		$	—				$	141
Derivatives:
NEE:
Commodity contracts	$	1,168	$	1,503		$	1,410	$	(2,196	)	$	1,885	^(e)
Interest rate contracts	$	—	$	76		$	—	$	16		$	92	^(e)
Foreign currency contracts	$	—	$	—		$	—	$	11		$	11	^(e)
FPL - commodity contracts	$	—	$	10		$	1	$	(4	)	$	7	^(e)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,144	$	900		$	502	$	(2,143	)	$	403	^(e)
Interest rate contracts	$	—	$	171		$	128	$	16		$	315	^(e)
Foreign currency contracts	$	—	$	42		$	—	$	11		$	53	^(e)
FPL - commodity contracts	$	—	$	5		$	2	$	(4	)	$	3	^(e)

———————————————

(ba) AtIncludes ~~NEE,~~the ~~approximately~~effect ~~$1,214~~of ~~million~~the ~~($1,093~~contractual ~~million~~ability atto settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL) also have contract settlement receivable and payable balances that are ~~invested~~subject into ~~commingled~~the ~~funds~~master ~~whose~~netting ~~underlying~~arrangements ~~investments~~but ~~would~~are benot ~~Level~~offset 1within ifthe ~~those~~condensed ~~investments~~consolidated ~~were~~balance ~~held~~sheets ~~directly~~and byare ~~NEE~~recorded orin ~~FPL~~customer receivables - net and accounts payable, respectively.

(cb) ~~See~~Includes ~~Note~~restricted 2cash ~~for~~of aapproximately ~~reconciliation~~$137 ofmillion ~~net~~($99 ~~derivatives~~million tofor ~~NEE's~~FPL) ~~and~~in ~~FPL's~~other current assets on the condensed consolidated balance sheets.


(c)	Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.


(d)	Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.


(e)	See Note 2 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's condensed consolidated balance sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Significant Unobservable Inputs Used in Recurring Fair Value Measurements - The valuation of certain commodity contracts requires the use of significant unobservable inputs. All forward price, implied volatility, implied correlation and interest rate inputs used in the valuation of such contracts are directly based on third-party market data, such as broker quotes and exchange settlements, when that data is available. If third-party market data is not available, then industry standard methodologies are used to develop inputs that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs, including some forward prices, implied volatilities and interest rates used for determining fair value are updated daily to reflect the best available market information. Unobservable inputs which are related to observable inputs, such as illiquid portions of forward price or volatility curves, are updated daily as well, using industry standard techniques such as interpolation and extrapolation, combining observable forward inputs supplemented by historical market and other relevant data. Other unobservable inputs, such as implied correlations, customer migration rates from full requirements contracts and some implied volatility curves, are modeled using proprietary models based on historical data and industry standard techniques.



	December 31, 2016
	Level 1		Level 2			Level 3		Netting^(a)			Total
	(millions)
Assets:
Cash equivalents and restricted cash:^(b)
NEE - equity securities	$	982	$	—		$	—				$	982
FPL - equity securities	$	120	$	—		$	—				$	120
Special use funds:^(c)
NEE:
Equity securities	$	1,410	$	1,503	^(d)	$	—				$	2,913
U.S. Government and municipal bonds	$	296	$	170		$	—				$	466
Corporate debt securities	$	1	$	763		$	—				$	764
Mortgage-backed securities	$	—	$	498		$	—				$	498
Other debt securities	$	—	$	81		$	—				$	81
FPL:
Equity securities	$	373	$	1,372	^(d)	$	—				$	1,745
U.S. Government and municipal bonds	$	221	$	141		$	—				$	362
Corporate debt securities	$	—	$	547		$	—				$	547
Mortgage-backed securities	$	—	$	384		$	—				$	384
Other debt securities	$	—	$	70		$	—				$	70
Other investments:
NEE:
Equity securities	$	26	$	9		$	—				$	35
Debt securities	$	8	$	153		$	—				$	161
Derivatives:
NEE:
Commodity contracts	$	1,563	$	1,827		$	1,200	$	(2,652	)	$	1,938	^(e)
Interest rate contracts	$	—	$	285		$	3	$	8		$	296	^(e)
Foreign currency contracts	$	—	$	1		$	—	$	—		$	1	^(e)
FPL - commodity contracts	$	—	$	208		$	4	$	(3	)	$	209	^(e)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,476	$	980		$	512	$	(2,485	)	$	483	^(e)
Interest rate contracts	$	—	$	171		$	113	$	8		$	292	^(e)
Foreign currency contracts	$	—	$	106		$	—	$	—		$	106	^(e)
FPL - commodity contracts	$	—	$	1		$	3	$	(3	)	$	1	^(e)

———————————————

~~All~~(a) ~~price,~~Includes ~~volatility,~~the ~~correlation~~effect ~~and~~of ~~customer~~the ~~migration~~contractual ~~inputs~~ability ~~used in valuation are subject~~ to ~~validation~~settle bycontracts ~~the~~under ~~Risk~~master ~~Management~~netting ~~group. The~~arrangements ~~Risk Management group performs a risk management function responsible for assessing credit, market~~ and ~~operational~~the ~~risk~~netting ~~impact,~~of ~~reviewing~~margin ~~valuation~~cash ~~methodology~~collateral ~~and~~payments ~~modeling, confirming transactions, monitoring approval processes~~ and ~~developing and monitoring trading limits~~receipts. ~~The~~ ~~Risk Management group is separate from the transacting group, and the Vice President of Risk Management reports to the Chief Financial Officer of~~ NEE and FPL~~. For~~ ~~markets~~also ~~where~~have ~~independent~~contract ~~third-party~~settlement ~~data~~receivable ~~is readily available, validation is conducted daily by directly reviewing this market data against inputs utilized by the transacting group,~~ and ~~indirectly~~payable bybalances ~~critically~~that ~~reviewing daily risk reports. For markets where independent third-party data is not readily available, additional analytical reviews~~ are ~~performed~~subject ~~on at least a quarterly basis. These analytical reviews are designed~~ to ~~ensure~~the ~~that~~master ~~all~~netting ~~price~~arrangements ~~and~~but ~~volatility curves used for fair valuing transactions~~ are ~~adequately~~not ~~validated~~offset ~~each~~within ~~quarter, and are reviewed and approved by~~ the ~~Vice~~condensed ~~President~~consolidated ofbalance ~~Risk~~sheets ~~Management. In addition, other valuation assumptions such as implied correlations~~ and ~~customer migration rates~~ are ~~reviewed~~recorded ~~and approved by the Risk Management group on a periodic basis. Newly created models used~~ in ~~the~~customer ~~valuation~~receivables ~~process~~- ~~are~~net ~~also subject to testing~~ and ~~approval~~accounts ~~by the Risk Management group prior to use and established models are reviewed annually~~payable, ~~or more often as needed, by the Risk Management group~~respectively.

~~On a monthly basis, the Exposure Management Committee~~ (~~EMC~~b), ~~which~~Includes isrestricted ~~comprised~~cash of ~~certain~~approximately ~~members~~$164 ofmillion ~~senior~~($120 ~~management,~~million ~~meets~~for ~~with representatives from the Risk Management group and the transacting group to discuss NEE's and~~ FPL's) ~~energy~~in ~~risk~~other ~~profile~~current ~~and~~assets ~~operations,~~on to review risk reports and to discuss fair value issues as necessary. The EMC develops guidelines required for an appropriate risk management control infrastructure, which includes implementation and monitoring of compliance with Risk Management policy. The EMC executes its risk management responsibilities through direct oversight and delegation of its responsibilities to the ~~Vice~~condensed ~~President~~consolidated ofbalance ~~Risk Management, as well as to other corporate and business unit personnel~~sheets.

~~The~~(c) ~~significant~~Excludes ~~unobservable~~investments ~~inputs~~accounted ~~used~~for inunder the ~~valuation~~equity ofmethod ~~NEE's~~and ~~contracts~~loans ~~categorized~~not asmeasured ~~Level~~at 3fair ofvalue ~~the~~on ~~fair~~a ~~value~~recurring ~~hierarchy~~basis. See Fair Value of Financial Instruments Recorded at ~~March 31,~~Other ~~2013~~than ~~are~~Fair asValue ~~follows:~~below.

Transaction Type	Fair Value atMarch 31, 2013		ValuationTechnique(s)	SignificantUnobservable Inputs	Range
	Assets	Liabilities
	(millions)
Forward contracts - power	$446	$78	Discounted cash flow	Forward price (per mwh)	$1	—	$179
Options - power	$104	$117	Option models	Implied correlations	12%	—	98%
				Implied volatilities	1%	—	135%
Options - gas	$33	$28	Option models	Implied correlations	12%	—	98%
				Implied volatilities	1%	—	30%
Full requirements and unit contingent contracts	$206	$60	Discounted cash flow	Forward price (per mwh)	$(2)	—	$145
				Customer migration rate(a)	—%	—	20%


(d)	Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

~~——————————~~(e) See Note 2 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's condensed consolidated balance sheets.

(a) Applies only to full requirements contracts.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Significant Unobservable Inputs Used in Recurring Fair Value Measurements - The ~~sensitivity~~valuation of ~~NEE's~~certain commodity contracts requires the use of significant unobservable inputs. All forward price, implied volatility, implied correlation and interest rate inputs used in the valuation of such contracts are directly based on third-party market data, such as broker quotes and exchange settlements, when that data is available. If third-party market data is not available, then industry standard methodologies are used to develop inputs that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs, including some forward prices, implied volatilities and interest rates used for determining fair value ~~measurements~~are toupdated ~~increases~~daily ~~(decreases)~~to inreflect the ~~significant~~best available market information. Unobservable inputs which are related to observable inputs, such as illiquid portions of forward price or volatility curves, are updated daily as well, using industry standard techniques such as interpolation and extrapolation, combining observable forward inputs supplemented by historical market and other relevant data. Other unobservable inputs, issuch as ~~follows:~~implied correlations, customer migration rates from full requirements contracts and some implied volatility curves, are modeled using proprietary models based on historical data and industry standard techniques.

~~Significant~~All ~~Unobservable~~price, ~~Input~~volatility, ~~Position~~correlation ~~Impact~~and ~~onFair~~customer ~~Value~~migration ~~Measurement~~inputs ~~Forward~~used in valuation are subject to validation by the Trading Risk Management group. The Trading Risk Management group performs a risk management function responsible for assessing credit, market and operational risk impact, reviewing valuation methodology and modeling, confirming transactions, monitoring approval processes and developing and monitoring trading limits. The Trading Risk Management group is separate from the transacting group. For markets where independent third-party data is readily available, validation is conducted daily by directly reviewing this market data against inputs utilized by the transacting group, and indirectly by reviewing daily risk reports. For markets where independent third-party data is not readily available, additional analytical reviews are performed on at least a quarterly basis. These analytical reviews are designed to ensure that all price ~~Purchase~~and ~~power~~volatility ~~Increase~~curves ~~(decrease)~~used ~~Sell~~for ~~power~~fair ~~Decrease~~valuing ~~(increase)~~transactions ~~Implied~~are ~~correlations~~adequately ~~Purchase~~validated ~~option~~each ~~Decrease~~quarter, ~~(increase)~~and ~~Sell~~are ~~option~~reviewed ~~Increase~~and ~~(decrease)~~approved ~~Implied~~by ~~volatilities~~the ~~Purchase~~Trading ~~option~~Risk ~~Increase~~Management ~~(decrease)~~group. ~~Sell~~In ~~option~~addition, ~~Decrease~~other ~~(increase)~~valuation ~~Customer~~assumptions such as implied correlations and customer migration ~~rate~~rates ~~Sell~~are ~~power(~~reviewed and approved by the Trading Risk Management group on a) ~~Decrease~~periodic ~~(increase)~~basis. Newly created models used in the valuation process are also subject to testing and approval by the Trading Risk Management group prior to use and established models are reviewed annually, or more often as needed, by the Trading Risk Management group.

~~————————————~~On a monthly basis, the Exposure Management Committee (EMC), which is comprised of certain members of senior management, meets with representatives from the Trading Risk Management group and the transacting group to discuss NEE's and FPL's energy risk profile and operations, to review risk reports and to discuss fair value issues as necessary. The EMC develops guidelines required for an appropriate risk management control infrastructure, which includes implementation and monitoring of compliance with Trading Risk Management policy. The EMC executes its risk management responsibilities through direct oversight and delegation of its responsibilities to the Trading Risk Management group, as well as to other corporate and business unit personnel.

~~(a) Assumes~~The ~~the~~significant ~~contract~~unobservable isinputs used in athe ~~gain~~valuation ~~position.~~of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at September 30, 2017 are as follows:

The reconciliation of changes in the fair value of derivatives that are based on significant unobservable inputs is as follows:



	Fair Value at				Valuation	Significant
Transaction Type	September 30, 2017				Technique(s)	Unobservable Inputs	Range
	Assets		Liabilities
	(millions)
Forward contracts - power	$	860	$	263	Discounted cash flow	Forward price (per MWh)	$—	—	$87
Forward contracts - gas	28		14		Discounted cash flow	Forward price (per MMBtu)	$1	—	$6
Options - power	48		19		Option models	Implied correlations	1%	—	100%
						Implied volatilities	8%	—	227%
Options - primarily gas	149		195		Option models	Implied correlations	1%	—	100%
						Implied volatilities	1%	—	104%
Full requirements and unit contingent contracts	325		11		Discounted cash flow	Forward price (per MWh)	$(19)	—	$206
						Customer migration rate^(a)	—%	—	20%
Total	$	1,410	$	502

	Three Months Ended March 31,
	2013						2012
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	566		$	2		$	486		$	4
Realized and unrealized gains (losses):
Included in earnings(a)	(3		)	—			231			—
Included in regulatory assets and liabilities	1			1			4			4
Purchases	49			—			158			—
Settlements	(33		)	(1		)	(124		)	(1		)
Issuances	(64		)	—			(177		)	—
Transfers in(b)	—			—			16			—
Transfers out(b)	6			—			(5		)	—
Fair value of net derivatives based on significant unobservable inputs at March 31	$	522		$	2		$	589		$	7
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date(c)	$	32		$	—		$	221		$	—

———————————————

(a) ~~For~~Applies ~~the~~only ~~three~~to ~~months~~full ~~ended~~requirements March 31, 2013 and 2012, less than $(1) million and $228 million, respectively, of realized and unrealized gains (losses) are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchangecontracts.

(b) Transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.

(c) For the three months ended March 31, 2013 and 2012, $31 million and $219 million, respectively, of unrealized gains are reflected in the condensed consolidated statements of income in operating revenues and the balance is reflected in fuel, purchased power and interchange.

Nonrecurring Fair Value Measurements - NEE tests long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the first quarter of 2013, the Spanish government enacted a new law that made further changes to the economic framework of renewable energy projects including, among other things, changes that negatively affect the projected economics of the 99.8 megawatts (mw) of solar thermal facilities that affiliates of NEER are constructing in Spain (Spain solar projects) (see Note 10 - Commitments). Due to the change in law, NEER performed a recoverability analysis, considering, among other things, working with lenders to restructure the financing agreements, abandoning the projects or selling the projects, and concluded that the undiscounted cash flows of the Spain solar projects were less than the carrying value of the projects. Accordingly, NEER performed a fair value analysis based on the income approach to determine the amount of the impairment. Based on the fair value analysis, property, plant and equipment with a carrying amount of approximately $800 million were written down to their estimated fair value of approximately $500 million as of March 31, 2013, resulting in an impairment charge of $300 million ($342 million after-tax, see Note 5), which is recorded as a separate line item in NEE’s condensed consolidated statements of income for the three months ended March 31, 2013.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The ~~estimate~~sensitivity of ~~the~~NEE's fair value ~~was~~measurements ~~based on the discounted cash flows which were determined using a market participant view of the Spain solar projects upon completion and final commissioning of the projects which is expected~~ to ~~occur~~increases in the second half of 2013. As part of the valuation, NEER used observable inputs where available, including the revised renewable energy pricing under the new law. Significant unobservable inputs (~~Level 3~~decreases), ~~including forecasts of generation, estimates of tariff escalation rates and estimated costs of debt and equity capital, were also used~~ in the ~~estimation~~significant of fair value. In addition, NEER made certain assumptions regarding the projected capital and maintenance expenditures based on the estimated costs to complete the Spain solar projects and ongoing capital and maintenance expenditures. An increase in the revenue and generation forecasts, a decrease in the projected capital and maintenance expenditures or a decrease in the weighted average cost of capital each would result in an increased fair market value. Changes in the opposite direction of those unobservable inputs ~~would~~is ~~result~~as ~~in a decreased fair market value.~~follows:

~~See~~Significant ~~Note~~Unobservable 6Input ~~for~~Position aImpact ~~discussion~~onFair ofValue ~~the~~Measurement ~~nonrecurring~~Forward ~~fair~~price ~~value~~Purchase ~~measurement~~power/gas ofIncrease ~~certain~~(decrease) ~~discontinued~~Sell ~~operations.~~power/gas Decrease (increase) Implied correlations Purchase option Decrease (increase) Sell option Increase (decrease) Implied volatilities Purchase option Increase (decrease) Sell option Decrease (increase) Customer migration rate Sell power(a) Decrease (increase)

~~4. Financial Instruments~~———————————————

~~The carrying amounts of cash equivalents, short-term debt and commercial paper approximate their fair values.~~(a) AtAssumes ~~March 31,~~the ~~2013~~contract ~~and~~is ~~December 31, 2012, other investments of NEE, not included~~ in ~~the~~a ~~table~~gain below, included financial instruments of approximately $37 million and $41 million ($4 million and $4 million at FPL), respectively, which primarily consist of notes receivable that are carried at estimated fair value or cost, which approximates fair valueposition.

~~The~~In ~~following~~addition, ~~estimates of~~ the fair value measurement of ~~financial~~interest ~~instruments~~rate ~~have~~contract ~~been~~net ~~made~~liabilities ~~primarily~~related ~~using~~to the ~~market~~solar ~~approach~~projects ofin ~~using~~Spain ~~prices~~of ~~and~~approximately ~~other~~$128 ~~market~~million ~~information~~at ~~for~~September 30, ~~identical~~2017 ~~and/or~~includes ~~comparable~~a ~~assets~~significant ~~and~~credit ~~liabilities~~valuation adjustment. ~~However~~ The credit valuation adjustment, ~~the~~considered ~~use~~an ofunobservable ~~different~~input, ~~market~~reflects ~~assumptions~~management's orassessment ~~methods~~of non-performance risk of ~~valuation~~the ~~could~~subsidiaries ~~result~~related to the solar projects in ~~different~~Spain ~~estimated~~that ~~fair~~are ~~values~~party to the contracts.

	March 31, 2013								December 31, 2012
	CarryingAmount				EstimatedFair Value				CarryingAmount				EstimatedFair Value
	(millions)
NEE:
Special use funds	$	4,413		(a)	$	4,413		(a)	$	4,190		(a)	$	4,190		(a)
Other investments:
Notes receivable	$	500			$	675		(b)	$	500			$	665		(b)
Debt securities	$	117		(c)	$	117		(d)	$	111		(c)	$	111		(d)
Equity securities	$	45			$	45		(e)	$	61			$	79		(e)
Long-term debt, including current maturities	$	25,543			$	27,706		(f)	$	26,647		(g)	$	28,874		(f)
Interest rate swaps - net unrealized losses	$	(211	)		$	(211	)	(d)	$	(311	)		$	(311	)	(d)
Foreign currency swaps - net unrealized losses	$	(103	)		$	(103	)	(d)	$	(66	)		$	(66	)	(d)
FPL:
Special use funds	$	3,064		(a)	$	3,064		(a)	$	2,918		(a)	$	2,918		(a)
Long-term debt, including current maturities	$	8,355			$	9,810		(f)	$	8,782			$	10,421		(f)

The reconciliation of changes in the fair value of derivatives that are based on significant unobservable inputs is as follows:

————————————



	Three Months Ended September 30,
	2017						2016
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at June 30	$	724		$	(2	)	$	532		$	(1	)
Realized and unrealized gains (losses):
Included in earnings^(a)	158			—			153			—
Included in other comprehensive income (loss)^(b)	(5		)	—			—			—
Purchases	38			—			28			—
Settlements	(77		)	1			(72		)	1
Issuances	(59		)	—			(16		)	—
Transfers in^(c)	—			—			1			—
Transfers out^(c)	1			—			36			—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	780		$	(1	)	$	662		$	—
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date^(d)	$	213		$	—		$	150		$	—

(a) At March 31, 2013, includes $241 million of investments accounted for under the equity method and $39 million of loans not measured at fair value on a recurring basis ($149 million and $32 million, respectively, for FPL). At December 31, 2012, includes $229 million of investments accounted for under the equity method and $40 million of loans not measured at fair value on a recurring basis ($138 million and $32 million, respectively, for FPL). For the remaining balances, see Note 3 for classification by major security type and hierarchy level. The amortized cost of debt and equity securities is $1,725 million and $1,500 million, respectively, at March 31, 2013 and $1,679 million and $1,500 million, respectively, at December 31, 2012 ($1,368 million and $839 million, respectively, at March 31, 2013 and $1,339 million and $839 million, respectively, at December 31, 2012 for FPL).———————————————

(ba) ~~Classified~~For asthe ~~held~~three tomonths ~~maturity.~~ended ~~Estimated~~September ~~using~~30, a2017 ~~discounted~~and ~~cash~~2016, ~~flow~~realized ~~valuation technique based on certain observable yield curves~~ and ~~indices~~unrealized ~~considering~~gains ~~the credit profile~~ of ~~the~~approximately ~~borrower~~$164 ~~(Level~~million ~~3). Notes receivable bear interest at fixed rates~~ and ~~mature~~$198 bymillion, ~~2029.~~respectively, ~~Notes receivable~~ are ~~considered~~reflected ~~impaired and placed~~ in ~~non-accrual status when it becomes probable that all amounts due cannot be collected in accordance with~~ the ~~contractual~~condensed ~~terms~~consolidated statements of ~~the~~income ~~agreement. The assessment to place notes receivable~~ in ~~non-accrual~~operating ~~status~~revenues ~~considers various credit indicators, such as credit ratings~~ and ~~market-related~~the ~~information.~~balance Asis ofprimarily ~~March~~reflected ~~31, 2013, NEE had no notes receivable reported~~ in ~~non-accrual~~interest ~~status~~expense.

(cb) ~~Classified~~Reflected asin ~~trading~~net ~~securities~~unrealized gains on foreign currency translation on the condensed consolidated statements of comprehensive income.

(dc) ~~See~~Transfers ~~Note~~into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.

(ed) ~~Primarily~~For ~~modeled~~the ~~internally~~three ~~based~~months onended ~~recent~~September ~~market~~30, ~~information~~2017 ~~including~~and 2016, ~~among~~unrealized ~~other~~gains ~~things~~of approximately $219 million and $194 million, ~~private~~respectively, ~~offerings~~are reflected in the condensed consolidated statements of income in operating revenues and the ~~securities~~balance ~~(Level~~is 3)reflected in interest expense.

(f) As of March 31, 2013 and December 31, 2012, $18,535 million and $18,962 million, respectively, is estimated using quoted market prices for the same or similar issues (Level 2); the balance is estimated using a discounted cash flow valuation technique, considering the current credit spread of the debtor (Level 3). For FPL, estimated using quoted market prices for the same or similar issues (Level 2).

(g) Also includes long-term debt reflected in liabilities associated with assets held for sale on the condensed consolidated balance sheets, for which the carrying amount approximates fair value.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Special Use Funds - The special use funds consist of FPL's storm fund assets of $73 million and NEE's and FPL's nuclear decommissioning fund assets of $4,340 million and $2,991 million, respectively, at March 31, 2013. The investments held in the special use funds consist of equity and debt securities which are primarily classified as available for sale and carried at estimated fair value (see Note 3). For FPL's special use funds, consistent with regulatory treatment, changes in fair value, including any other than temporary impairment losses, result in a corresponding adjustment to the related regulatory liability accounts. For NEE's non-rate regulated operations, changes in fair value result in a corresponding adjustment to OCI, except for unrealized losses associated with marketable securities considered to be other than temporary, including any credit losses, which are recognized as other than temporary impairment losses on securities held in nuclear decommissioning funds and included in other - net in NEE's condensed consolidated statements of income. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at March 31, 2013 of approximately six years at both NEE and FPL. FPL's storm fund primarily consists of debt securities with a weighted-average maturity at March 31, 2013 of approximately three years. The cost of securities sold is determined using the specific identification method.



	Nine Months Ended September 30,
	2017						2016
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior period	$	578		$	1		$	538		$	—
Realized and unrealized gains (losses):
Included in earnings^(a)	518			—			373			—
Included in other comprehensive income^(b)	(16		)	—			(3		)	—
Included in regulatory assets and liabilities	(2		)	(2		)	—			—
Purchases	83			—			203			—
Settlements	(234		)	—			(300		)	—
Issuances	(162		)	—			(159		)	—
Transfers in^(c)	14			—			4			—
Transfers out^(c)	1			—			6			—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	780		$	(1	)	$	662		$	—
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date^(d)	$	461		$	—		$	231		$	—

~~Realized gains and losses and proceeds from the sale or maturity of available for sale securities are as follows:~~———————————————

	NEE				FPL
	Three Months Ended March 31,				Three Months Ended March 31,
	2013		2012		2013		2012
	(millions)
Realized gains	$	42	$	43	$	23	$	31
Realized losses	$	30	$	12	$	22	$	11
Proceeds from sale or maturity of securities	$	924	$	936	$	685	$	727


(a)	For the nine months ended September 30, 2017 and 2016, realized and unrealized gains of approximately $519 million and $443 million, respectively, are reflected in the condensed consolidated statements of income in operating revenues and the balance is primarily reflected in interest expense.

~~Unrealized~~(b) ~~losses~~Reflected onin ~~available~~net ~~for~~unrealized ~~sale~~gains ~~debt~~on ~~securities~~foreign atcurrency ~~March 31,~~translation ~~2013 and December 31, 2012 were not material to NEE or FPL. The unrealized gains~~ on ~~available~~the ~~for~~condensed ~~sale~~consolidated ~~securities~~statements ~~are~~of ascomprehensive ~~follows:~~income.

	NEE				FPL
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
	(millions)
Equity securities	$	873	$	680	$	652	$	521
Debt securities	$	78	$	92	$	67	$	77


(c)	Transfers into Level 3 were a result of decreased observability of market data and transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.

~~Regulations issued by the Federal Energy Regulatory Commission~~ (~~FERC~~d) ~~and~~For the ~~NRC~~nine ~~provide~~months ~~general~~ended ~~risk~~September ~~management~~30, ~~guidelines~~2017 ~~to protect nuclear decommissioning funds~~ and ~~to allow such funds to earn a reasonable return. The FERC regulations prohibit~~2016, ~~among~~unrealized ~~other~~gains ~~investments,~~of ~~investments~~approximately in$462 ~~any~~million ~~securities~~and of$302 ~~NEE or its subsidiaries~~million, ~~affiliates or associates~~respectively, ~~excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants~~ are ~~included~~reflected in the ~~NRC~~condensed ~~operating~~consolidated ~~licenses~~statements ~~for~~of ~~those~~income ~~facilities or~~ in ~~NRC~~operating ~~regulations~~revenues ~~applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for NEER's Seabrook Station (Seabrook), decommissioning fund contributions~~ and ~~withdrawals are also regulated by~~ the ~~Nuclear~~balance ~~Decommissioning~~is ~~Financing~~reflected ~~Committee~~in ~~pursuant~~interest ~~to New Hampshire law~~expense.

~~The~~Contingent ~~nuclear~~Consideration ~~decommissioning~~- ~~reserve~~NEE ~~funds~~recorded ~~are~~a ~~managed~~liability byrelated ~~investment~~to ~~managers~~a ~~who~~contingent ~~must~~holdback ~~comply~~as ~~with~~part of the ~~guidelines~~2015 acquisition of ~~NEE~~a portfolio of seven long-term contracted natural gas pipeline assets located in Texas (Texas pipelines). The contingent holdback was payable if the Texas pipelines entered into one or more written contracts by December 31, 2016 related to certain financial performance and ~~FPL~~capital expenditure thresholds. The significant inputs and assumptions used in the ~~rules~~fair value measurement included the estimated probability of executing contracts related to financial performance and capital expenditure thresholds as well as the ~~applicable~~appropriate ~~regulatory~~discount ~~authorities~~rate. ~~The~~ ~~funds'~~During ~~assets~~the ~~are~~three ~~invested~~and ~~giving~~nine ~~consideration~~months toended ~~taxes,~~September ~~liquidity~~30, ~~risk~~2016, ~~diversification~~NEE recorded approximately $101 million and ~~other~~$118 ~~prudent~~million, ~~investment~~respectively, ~~objectives~~in fair value adjustments to decrease the contingent consideration based on updated estimates associated with management's probability assessment as of September 30, 2016. The fair value adjustments are included in revaluation of contingent consideration in NEE's condensed consolidated statements of income.

~~Interest~~Fair ~~Rate~~Value ~~and~~of ~~Foreign~~Financial ~~Currency~~Instruments ~~Swaps~~Recorded -at ~~NEE~~Other ~~and~~than ~~its~~Fair ~~subsidiaries~~Value ~~use~~- aThe ~~combination~~carrying amounts of ~~fixed~~commercial ~~rate~~paper and ~~variable~~other ~~rate~~short-term debt toapproximate ~~manage~~their ~~interest~~fair ~~rate exposure~~values. ~~Interest~~ ~~rate~~The ~~swaps~~carrying ~~are~~amounts ~~used to mitigate~~ and ~~adjust~~estimated ~~interest~~fair ~~rate~~values ~~exposure~~of ~~when~~other ~~deemed~~financial ~~appropriate~~instruments ~~based~~recorded ~~upon~~at ~~market~~other ~~conditions~~than orfair ~~when~~value ~~required~~are byas financing agreements. In addition, with respect to certain debt issuances and borrowings, NEECH has two cross currency swaps to hedge against currency movements with respect to both interest and principal payments and a cross currency swap to hedge against currency and interest rate movements with respect to both interest and principal payments. See Note 2.follows:



	September 30, 2017					December 31, 2016
	Carrying Amount		Estimated Fair Value			Carrying Amount			Estimated Fair Value
	(millions)
NEE:
Special use funds^(a)	$	716	$	716		$	712		$	712
Other investments - primarily notes receivable^(b)	$	512	$	695		$	526		$	668
Long-term debt, including current maturities	$	32,625	$	34,846	^(c)	$	30,418	^(d)	$	31,623	^(c)(d)
FPL:
Special use funds^(a)	$	561	$	561		$	557		$	557
Long-term debt, including current maturities	$	10,518	$	11,941	^(c)	$	10,072		$	11,211	^(c)

———————————————


(a)	Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis.

(b)

Primarily a note receivable which bears interest at a fixed rate and matures in 2029. At September 30, 2017, the note receivable is classified as held for sale and is under contract, along with debt secured by this note receivable (see Note 6 - NEER). Fair values are estimated using an income approach utilizing a discounted cash flow valuation technique based on certain observable yield curves and indices considering the credit profile of the borrower (Level 3).

(c)

As of September 30, 2017 and December 31, 2016, for NEE, approximately $33,106 million and $29,804 million, respectively, is estimated using a market approach based on quoted market prices for the same or similar issues (Level 2); the balance is estimated using an income approach utilizing a discounted cash flow valuation technique, considering the current credit profile of the debtor (Level 3). For FPL, primarily estimated using quoted market prices for the same or similar issues (Level 2).


(d)	Excludes debt totaling $373 million reflected in liabilities associated with assets held for sale on NEE's condensed consolidated balance sheet for which the carrying amount approximates fair value. See Note 9 - Assets and Liabilities Associated with Assets Held for Sale.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Special Use Funds - The special use funds noted above and those carried at fair value (see Recurring Fair Value Measurements above) consist of NEE's nuclear decommissioning fund assets of $5,894 million and $5,434 million at September 30, 2017 and December 31, 2016, respectively ($3,963 million and $3,665 million, respectively, for FPL). ~~Income~~ ~~Taxes~~The investments held in the special use funds consist of equity and debt securities which are primarily classified as available for sale and carried at estimated fair value. The amortized cost of debt and equity securities is approximately $1,863 million and $1,604 million, respectively, at September 30, 2017 and $1,820 million and $1,543 million, respectively, at December 31, 2016 ($1,392 million and $808 million, respectively, at September 30, 2017 and $1,373 million and $764 million, respectively, at December 31, 2016 for FPL). For FPL's special use funds, consistent with regulatory treatment, changes in fair value, including any other than temporary impairment losses, result in a corresponding adjustment to the related regulatory asset or liability accounts. For NEE's non-rate regulated operations, changes in fair value result in a corresponding adjustment to OCI, except for unrealized losses associated with marketable securities considered to be other than temporary, including any credit losses, which are recognized as other than temporary impairment losses on securities held in nuclear decommissioning funds and included in other - net in NEE's condensed consolidated statements of income. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at September 30, 2017 of approximately eight years at both NEE and FPL. The cost of securities sold is determined using the specific identification method.

~~NEE's~~Realized ~~effective~~gains ~~income tax rates for the three months ended March 31, 2013~~ and ~~2012~~losses ~~were approximately 67%~~ and ~~25%,~~proceeds ~~respectively. The~~from ~~increase in~~ the ~~rate~~sale ~~for~~or ~~the~~maturity ~~three months ended March 31, 2013 is primarily due to the establishment~~ of aavailable full valuation allowance of approximately $132 million on the deferred tax assets associated with the Spain solar projects. This valuation allowance primarily related to deferred tax assets created as a result of the $300 million impairment and other related charges ($342 million after-tax) recorded for ~~the~~sale ~~three~~securities ~~months~~are ended March 31, 2013. In addition, the rates for both periods reflect the effect of production tax credits (PTCs) of approximately $59 million and $61 million for wind projects at NEER and deferred income tax benefits associated with grants (convertible investment tax credits (ITCs)) under the American Recovery and Reinvestment Act of 2009, as ~~amended (Recovery Act), of $13 million and $12 million primarily for certain wind and solar projects expected to be placed in service.~~follows:

NEE recognizes PTCs as wind energy is generated and sold based on a per kilowatt-hour (kwh) rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year. NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the financial viability of most wind projects and a fundamental component of such wind projects' results of operations. PTCs, as well as deferred income tax benefits associated with convertible ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income. The amount of PTCs recognized can be significantly affected by wind generation and by the roll off of PTCs after ten years of production (PTC roll off).



	NEE				FPL				NEE				FPL
	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016		2017		2016		2017		2016
	(millions)
Realized gains	$	29	$	28	$	9	$	15	$	106	$	83	$	35	$	42
Realized losses	$	15	$	15	$	8	$	8	$	58	$	53	$	34	$	30
Proceeds from sale or maturity of securities	$	518	$	902	$	329	$	661	$	1,772	$	2,330	$	1,166	$	1,741

~~6. Discontinued~~The ~~Operations~~unrealized gains on available for sale securities are as follows:

In March 2013, a subsidiary of NEER completed the sale of its ownership interest in a portfolio of hydropower generation plants and related assets (hydro sale) with a total generating capacity of 351 mw located in Maine and New Hampshire. The sales price primarily included the assumption by the buyer of $700 million in related debt. In connection with the sale, a gain of approximately $372 million ($231 million after-tax) is reflected in net gain from discontinued operations, net of income taxes in NEE's condensed consolidated statements of income for the three months ended March 31, 2013. The assets and liabilities related to the hydro sale were classified as assets held for sale and liabilities associated with assets held for sale on NEE's condensed consolidated balance sheet at December 31, 2012. The operations of the hydropower generation plants, exclusive of the gain, were not material to NEE's condensed consolidated statements of income for the three months ended March 31, 2013 and 2012.



	NEE				FPL
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(millions)
Equity securities	$	1,690	$	1,396	$	1,188	$	1,007
Debt securities	$	40	$	22	$	31	$	17

InThe ~~March~~unrealized ~~2013,~~losses ~~NEER~~on ~~initiated~~available afor ~~plan and received internal authorization to pursue the~~ sale ofdebt ~~its~~securities ~~ownership~~and ~~interests in oil-fired generating plants located in Maine (Maine fossil) with a total generating capacity of 796 mw. In connection with~~ the ~~decision~~fair tovalue ~~sell Maine fossil, a loss~~ of ~~approximately~~available ~~$67~~for ~~million~~sale ~~($43~~debt ~~million~~securities ~~after-tax) is reflected~~ in net gain from discontinued operations, net of income taxes in NEE's condensed consolidated statements of income for the three months ended March 31, 2013. The fair value measurement (Level 3) was based on the estimated sales price less the estimated costs to sell. The estimated sales price was estimated using an ~~income~~unrealized ~~approach based primarily on capacity revenue forecasts. The carrying amount of the assets and liabilities and the operations, exclusive of the~~ loss, ofposition ~~Maine~~are ~~fossil were not material to NEE's condensed consolidated financial statements~~ as ~~of March 31, 2013 and for the three months ended March 31, 2013 and 2012.~~follows:



	NEE				FPL
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(millions)
Unrealized losses^(a)	$	11	$	34	$	9	$	28
Fair value	$	737	$	959	$	546	$	722

———————————————


(a)	Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at September 30, 2017 and December 31, 2016 were not material to NEE or FPL.

Regulations issued by the FERC and the NRC provide general risk management guidelines to protect nuclear decommissioning funds and to allow such funds to earn a reasonable return. The FERC regulations prohibit, among other investments, investments in any securities of NEE or its subsidiaries, affiliates or associates, excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants are included in the NRC operating licenses for those facilities or in NRC regulations applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for Seabrook, decommissioning fund contributions and withdrawals are also regulated by the New Hampshire Nuclear Decommissioning Financing Committee pursuant to New Hampshire law.

The nuclear decommissioning reserve funds are managed by investment managers who must comply with the guidelines of NEE and FPL and the rules of the applicable regulatory authorities. The funds' assets are invested giving consideration to taxes, liquidity, risk, diversification and other prudent investment objectives.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

74. ~~Variable~~Income ~~Interest Entities (VIEs)~~Taxes

AsNEE's effective income tax rates for the three months ended September 30, 2017 and 2016 were approximately 30% and 35%, respectively. The rates for both periods reflect the benefit of ~~March 31~~PTCs of approximately $27 million and $19 million, ~~2013~~respectively, ~~NEE~~related ~~has~~to ~~eleven~~NEER's ~~VIEs~~wind ~~which~~projects, itas ~~consolidates~~well as ITCs and ~~has~~deferred ~~interests~~income intaxes ~~certain~~associated ~~other~~with ~~VIEs~~grants ~~which~~under itthe ~~does~~Recovery ~~not~~Act ~~consolidate~~(convertible ITCs) totaling approximately $51 million and $34 million, respectively, related to solar and certain wind projects at NEER.

FPL - FPL is considered the primary beneficiary of, and therefore consolidates, a VIE that is a wholly-owned bankruptcy remote special purpose subsidiary that it formed in 2007 for the sole purpose of issuing storm-recovery bonds pursuant to the securitization provisions of the Florida Statutes and a financing order of the FPSC. FPL is considered the primary beneficiary because FPL has the power to direct the significant activities of the VIE, and its equity investment, which is subordinate to the bondholderNEE's ~~interest~~effective inincome ~~the~~tax ~~VIE,~~rates is at risk. Storm restoration costs incurred by FPL during 2005 and 2004 exceeded the amount in FPL's funded storm and property insurance reserve, resulting in a storm reserve deficiency. In 2007, the VIE issued $652 million aggregate principal amount of senior secured bonds (storm-recovery bonds), primarily for the ~~after-tax~~nine ~~equivalent~~months ofended ~~the~~September ~~total of FPL's unrecovered balance of the 2004 storm restoration costs~~30, ~~the~~2017 ~~2005 storm restoration costs~~ and to2016 ~~reestablish~~were ~~FPL's storm and property insurance reserve. In connection with this financing, net proceeds, after debt issuance costs, to the VIE (~~approximately ~~$644~~29% ~~million) were used to acquire the storm-recovery property, which includes the right to impose, collect~~ and ~~receive a storm-recovery charge from all customers receiving electric transmission or distribution service from FPL under rate schedules approved by the FPSC or under special contracts~~31%, ~~certain other rights and interests that arise under the financing order issued by the FPSC and certain other collateral pledged by the VIE that issued the bonds~~respectively. ~~The~~ ~~storm-recovery bonds are payable only from and are secured by the storm-recovery property.~~ The ~~bondholders~~rates ~~have~~for noboth ~~recourse~~periods toreflect the ~~general~~benefit ~~credit~~ of ~~FPL. The~~PTCs ~~assets~~ of ~~the VIE were~~ approximately $~~332~~85 million and $~~366~~92 million ~~at March 31~~, ~~2013 and December 31, 2012,~~ respectively, ~~and~~related ~~consisted~~to ~~primarily~~NEER's ofwind ~~storm-recovery property~~projects, ~~which~~as ~~are~~well ~~included~~as inITCs ~~securitized storm-recovery costs on NEE's~~ and ~~FPL's~~deferred ~~condensed~~income ~~consolidated~~taxes ~~balance~~associated ~~sheets. The~~with ~~liabilities~~convertible ofITCs ~~the~~totaling ~~VIE were~~ approximately $~~414~~220 million and $~~447~~115 million ~~at March 31~~, ~~2013 and December 31, 2012,~~ respectively, ~~and~~related ~~consisted~~to ~~primarily~~solar ~~of storm-recovery bonds, which are included in long-term debt on NEE's~~ and ~~FPL's~~certain ~~condensed~~wind ~~consolidated~~projects ~~balance~~at ~~sheets~~NEER.

~~FPL~~NEE ~~identified~~recognizes aPTCs ~~potential~~as ~~VIE,~~wind ~~which~~energy is ~~considered~~generated aand ~~qualifying~~sold ~~facility~~based ason ~~defined~~a byper ~~the~~kWh ~~Public~~rate ~~Utility~~prescribed ~~Regulatory~~in ~~Policies~~applicable ~~Act~~federal ofand ~~1978~~state statutes, aswhich ~~amended~~may ~~(PURPA). PURPA~~differ ~~requires~~significantly ~~utilities,~~from ~~such~~amounts ~~as FPL~~computed, toon ~~purchase the electricity output of~~ a ~~qualifying~~quarterly ~~facility. FPL~~basis, ~~entered~~using ~~into~~an aoverall ~~purchased power agreement~~ effective inincome ~~1994~~tax ~~with~~rate ~~this~~anticipated ~~250~~for ~~mw coal-fired qualifying facility to purchase substantially all of~~ the ~~facility's~~full ~~capacity and electrical output over a substantial portion of its estimated useful life~~year. ~~FPL~~ ~~absorbs~~NEE auses ~~portion~~this ofmethod ~~the facility's variability related to changes in the market price~~ of ~~coal~~recognizing ~~through~~PTCs ~~the~~for ~~price~~specific ~~it pays per mwh (energy payment). After making exhaustive efforts~~reasons, ~~FPL~~including ~~was~~that ~~unable~~PTCs toare ~~obtain~~an ~~the~~integral ~~information~~part ~~from~~of the ~~facility~~financial ~~necessary~~viability toof ~~determine~~most ~~whether~~wind ~~the~~projects ~~facility~~and is a ~~VIE~~fundamental orcomponent ~~whether~~of ~~FPL~~such iswind ~~the~~projects' ~~primary~~results ~~beneficiary~~ of ~~the facility~~operations. ~~The~~ ~~purchased~~PTCs, ~~power~~as ~~agreement~~well ~~with the facility contains no provision which legally obligates the facility to release this information to FPL. The energy payments paid by FPL will fluctuate~~ as ~~coal~~ITCs ~~prices~~and ~~change. This~~deferred ~~fluctuation~~income ~~does~~taxes ~~not~~associated ~~expose~~with ~~FPL~~convertible toITCs, ~~losses~~can ~~since~~significantly ~~the~~affect ~~energy~~NEE's ~~payments~~effective ~~paid~~income bytax ~~FPL~~rate todepending ~~the facility are passed~~ on ~~to FPL's customers through~~ the ~~fuel~~amount ~~clause~~of aspretax ~~approved by the FPSC~~income. ~~Notwithstanding~~ ~~the~~The ~~fact~~amount ~~that FPL's energy payments are recovered through the fuel clause, if the facility was determined to be a VIE, the absorption~~ of ~~some~~PTCs ofrecognized ~~the~~can ~~facility's fuel price variability might cause FPL to~~ be ~~considered~~significantly ~~the~~affected ~~primary~~by ~~beneficiary. During~~wind ~~the~~generation ~~three months ended March 31, 2013~~ and ~~2012,~~by ~~FPL~~the ~~purchased~~roll ~~79,210~~off ~~mwh~~of ~~and~~PTCs ~~98,941~~after ~~mwh,~~ten ~~respectively,~~years ~~from the facility at a total cost~~ of ~~approximately~~production ~~$35~~(PTC ~~million~~roll ~~and $40 million, respectively~~off).

~~Additionally,~~In ~~FPL~~April ~~entered~~2016, ~~into~~ a ~~purchased~~court ~~power~~decision ~~agreement~~was ~~effective~~issued inapproving ~~1995~~a ~~with~~reorganization aof ~~330~~certain mwCanadian ~~coal-fired~~assets ~~qualifying~~that ~~facility~~provided tofor ~~purchase~~tax ~~substantially~~bases ~~all~~in certain of ~~the~~these ~~facility's~~assets ~~electrical~~(Canadian ~~output~~tax ~~over~~restructuring). aNEE ~~substantial~~recorded ~~portion~~approximately $30 million of ~~its~~the ~~estimated~~associated ~~useful~~income ~~life. The~~tax ~~facility~~benefits isduring ~~considered~~the anine ~~VIE~~months ~~because~~ended ~~FPL~~September ~~absorbs~~30, 2016, which effectively reversed a portion of the ~~facility’s~~income ~~variability~~tax ~~related~~charge toNEE ~~changes~~recorded in the ~~market~~second ~~price~~quarter of ~~coal~~2014 ~~through~~associated ~~the~~with ~~energy~~structuring ~~payment~~Canadian assets. ~~Since~~ ~~FPL~~In ~~does~~addition, ~~not~~consolidating ~~control~~income ~~the~~tax ~~most~~adjustments ~~significant~~for ~~activities of~~ the ~~facility,~~nine ~~including~~months ~~operations~~ended ~~and~~September ~~maintenance~~30, ~~FPL~~2016 isinclude ~~not~~an ~~the~~approximately ~~primary~~$58 ~~beneficiary~~million ~~and~~income ~~does~~tax ~~not~~charge ~~consolidate~~related ~~this~~to ~~VIE. The~~the ~~energy~~sale ~~payments~~of ~~paid~~NEER's byownership ~~FPL~~interest ~~will~~in ~~fluctuate~~merchant asnatural ~~coal~~gas ~~prices~~generation ~~change. This~~facilities ~~fluctuation~~located ~~does~~in ~~not~~Texas ~~expose~~with ~~FPL~~a tototal ~~losses~~generating ~~since~~capacity ~~the~~of ~~energy~~2,884 ~~payments~~MW ~~paid~~(Texas bynatural ~~FPL~~gas togeneration ~~the~~facilities). ~~facility~~See ~~are~~Note ~~passed~~9 on- toAssets ~~FPL’s~~and ~~customers~~Liabilities ~~through~~Associated ~~the~~with ~~fuel~~Assets ~~clause~~Held asfor ~~approved by the FPSC~~Sale.

~~NEER~~5. Oncor-Related NEE consolidates ten NEER VIEs. NEER is considered the primary beneficiary of these VIEs since NEER controls the most significant activities of these VIEs, including operations and maintenance, and through its 100% equity ownership has the obligation to absorb expected losses of these VIEs.Transactions

AnFrom ~~NEER~~July ~~VIE~~2016 ~~consolidates~~through ~~two~~October ~~entities~~2016, ~~which~~NEE ~~own~~ and ~~operate~~certain ~~natural~~of ~~gas/oil~~its ~~electric~~affiliates ~~generating~~entered ~~facilities~~into ~~with~~several ~~the~~agreements ~~capability~~with ofEnergy ~~producing~~Future ~~110~~Holdings mwCorp. ~~This~~ ~~VIE~~(EFH) ~~sells~~and ~~its~~Energy ~~electric~~Future ~~output~~Intermediate ~~under~~Holding ~~power~~Company ~~sales~~LLC ~~contracts~~(EFIH), toTexas aTransmission ~~third~~Holdings ~~party~~Corporation (TTHC), ~~with~~Oncor ~~expiration~~Management ~~dates~~Investment LLC and certain of their affiliates, which would have resulted in ~~2018~~NEE ~~and~~owning ~~2020~~100% of Oncor Electric Delivery Company LLC (Oncor) if the transactions contemplated by those agreements would have been consummated. The ~~power~~agreements ~~sales~~with ~~contracts~~EFH ~~provide~~and ~~the~~EFIH ~~offtaker~~and ~~the~~TTHC ~~ability~~were subject to, ~~dispatch~~among ~~the~~other ~~facilities~~things, ~~and~~approval ~~require~~by the ~~offtaker~~Public toUtility ~~absorb~~Commission of Texas (PUCT). On April 13, 2017, the ~~cost~~PUCT issued a final order denying NEE's purchase of ~~fuel~~Oncor. ~~This~~ ~~VIE~~On ~~uses~~July ~~third~~6, ~~party~~2017, ~~debt~~EFH and ~~equity~~EFIH provided a written notice (notice) to ~~finance~~NEE ~~its~~terminating ~~operations~~the agreement and plan of merger, dated as of July 29, 2016, as amended (merger agreement), under which EFH Merger Co. ~~The~~, ~~debt~~LLC is(Merger ~~secured~~Sub), bya ~~liens~~direct ~~against~~wholly owned subsidiary of NEE, would have acquired 100% of the ~~generating~~equity ~~facilities~~of reorganized EFH and certain of its subsidiaries, including its indirect ownership of approximately 80% of the ~~other~~outstanding ~~assets~~equity interests of ~~these~~Oncor. ~~entities~~Subsequently, NEE, EFH and EFIH and a large creditor of EFIH commenced legal proceedings in the U. ~~The~~S. ~~debt~~Bankruptcy ~~holders~~Court ~~have~~for nothe ~~recourse~~District of Delaware (bankruptcy court) in which the chapter 11 bankruptcy proceedings of EFH and EFIH are taking place to determine whether NEE is entitled to receive the ~~general~~$275 ~~credit~~million termination fee to which NEE believes it is entitled under the merger agreement and a September 2016 order of ~~NEER~~the bankruptcy court approving the termination fee payment provisions of the merger agreement (2016 termination fee approval order). ~~The~~ ~~assets~~In October 2017, the judge presiding over these proceedings issued an opinion and ~~liabilities~~order in one of these legal proceedings that the ~~VIE~~bankruptcy ~~were~~court's ~~approximately~~issuance ~~$94~~of ~~million~~the ~~and~~2016 ~~$72~~termination ~~million~~fee approval order was based upon a fundamental misapprehension of critical facts by the bankruptcy court and, ~~respectively~~accordingly, atordered ~~March 31,~~that ~~2013~~EFH and ~~$90~~EFIH ~~million~~are not authorized to pay the fee. NEE intends to appeal this decision and ~~$70~~believes ~~million,~~it ~~respectively,~~is aterroneous. ~~December 31,~~Until ~~2012~~that appeal is ultimately resolved, ~~and~~the ~~consisted~~remaining ~~primarily~~legal ofproceedings ~~property~~in the bankruptcy court between NEE, ~~plant~~EFH and ~~equipment~~EFIH and ~~long-term~~the ~~debt~~large creditor of EFIH as to whether NEE would be entitled to the termination fee if the foregoing appeal is successful have been stayed.

NEE is continuing to perform its obligations under the TTHC merger agreement. The TTHC merger agreement becomes terminable by NEE and separately by TTHC and its primary owners (acting together) if the PUCT has not approved the TTHC transaction by October 31, 2017. The TTHC merger agreement contemplates the payment by NEE of a termination fee of $72.3 million in connection with certain specified terminations of the TTHC merger agreement.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The other nine NEER VIEs consolidate several entities which own and operate wind electric generating facilities with the capability of producing a total of 3,058 mw. Eight of these VIEs sell their electric output under power sales contracts to third parties with expiration dates ranging from 2018 through 2037; the ninth VIE sells its electric output in the spot market. The VIEs use third-party debt and/or equity to finance their operations. Certain investors that hold no equity interest in the VIEs hold differential membership interests, which give them the right to receive a portion of the economic attributes of the generating facilities, including certain tax attributes. The debt is secured by liens against the generating facilities and the other assets of these entities. The debt holders have no recourse to the general credit of NEER. The assets and liabilities of these VIEs totaled approximately $4.6 ~~billion and $3~~.~~1 billion, respectively, at March 31, 2013 and $4.6 billion and $3.2 billion, respectively, at December 31, 2012.~~ AtVariable ~~March 31,~~Interest ~~2013~~Entities ~~and December 31, 2012, the assets and liabilities of the~~ (VIEs ~~consisted primarily of property, plant and equipment, deferral related to differential membership interests and long-term debt.~~)

~~Other -~~ As of ~~March~~September 3130, ~~2013 and December 31~~2017, ~~2012, several~~ NEE ~~subsidiaries~~had ~~have~~thirty-three ~~investments~~VIEs ~~totaling~~which ~~approximately~~it ~~$711~~consolidated ~~million ($545 million at FPL)~~ and ~~$753~~had ~~million~~interests ~~($583 million at FPL), respectively,~~ in certain ~~special~~other ~~purpose~~VIEs ~~entities,~~ which ~~consisted~~it ~~primarily~~did of investments in mortgage-backed securities. These investments are included in special use funds and other investments on NEE's condensed consolidated balance sheets and in special use funds on FPL's condensed consolidated balance sheets. As of March 31, 2013, NEE subsidiaries are not ~~the primary beneficiary and therefore do not~~ consolidate any of these entities because they do not control any of the ongoing activities of these entities, were not involved in the initial design of these entities and do not have a controlling financial interest in these entities.

8FPL - FPL is considered the primary beneficiary of, and therefore consolidates, a VIE that is a wholly owned bankruptcy remote special purpose subsidiary that it formed in 2007 for the sole purpose of issuing storm-recovery bonds pursuant to the securitization provisions of the Florida Statutes and a financing order of the FPSC. ~~Common~~ ~~Shareholders~~FPL is considered the primary beneficiary because FPL has the power to direct the significant activities of the VIE, and its equity investment, which is subordinate to the bondholder's ~~Equity~~interest in the VIE, is at risk. Storm restoration costs incurred by FPL during 2005 and 2004 exceeded the amount in FPL's funded storm and property insurance reserve, resulting in a storm reserve deficiency. In 2007, the VIE issued $652 million aggregate principal amount of senior secured bonds (storm-recovery bonds), primarily for the after-tax equivalent of the total of FPL's unrecovered balance of the 2004 storm restoration costs, the 2005 storm restoration costs and to reestablish FPL's storm and property insurance reserve. In connection with this financing, net proceeds, after debt issuance costs, to the VIE (approximately $644 million) were used to acquire the storm-recovery property, which includes the right to impose, collect and receive a storm-recovery charge from all customers receiving electric transmission or distribution service from FPL under rate schedules approved by the FPSC or under special contracts, certain other rights and interests that arise under the financing order issued by the FPSC and certain other collateral pledged by the VIE that issued the bonds. The storm-recovery bonds are payable only from and are secured by the storm-recovery property. The bondholders have no recourse to the general credit of FPL. The assets of the VIE were approximately $143 million and $216 million at September 30, 2017 and December 31, 2016, respectively, and consisted primarily of storm-recovery property, which are included in both current and noncurrent regulatory assets on NEE's and FPL's condensed consolidated balance sheets. The liabilities of the VIE were approximately $145 million and $214 million at September 30, 2017 and December 31, 2016, respectively, and consisted primarily of storm-recovery bonds, which are included in current maturities of long-term debt and long-term debt on NEE's and FPL's condensed consolidated balance sheets.

~~Earnings~~NEER ~~Per~~- ~~Share~~NEE consolidates thirty-two ~~The~~NEER ~~reconciliation~~VIEs. NEER is considered the primary beneficiary of ~~NEE's~~these ~~basic~~VIEs ~~and~~since ~~diluted~~NEER ~~earnings~~controls ~~per~~the ~~share~~most ofsignificant ~~common~~activities ~~stock~~of ~~from~~these ~~continuing~~VIEs, including operations isand asmaintenance, ~~follows:~~and has the obligation to absorb expected losses of these VIEs.

	Three Months Ended March 31,
	2013		2012
	(millions, except per share amounts)
Numerator - income from continuing operations	$	84	$	461
Denominator:
Weighted-average number of common shares outstanding - basic	421.0		412.3
Performance share awards, options, equity units and restricted stock(a)	2.7		2.4
Weighted-average number of common shares outstanding - assuming dilution	423.7		414.7
Earnings per share of common stock from continuing operations:
Basic	$	0.20	$	1.12
Assuming dilution	$	0.20	$	1.11

A subsidiary of NEER is the primary beneficiary of, and therefore consolidates, NEP, which consolidates NEP OpCo because of NEP’s controlling interest in the general partner of NEP OpCo. NEP is a limited partnership formed to acquire, manage and own contracted clean energy projects with stable, long-term cash flows through a limited partner interest in NEP OpCo. NEE owns a controlling non-economic general partner interest in NEP and a limited partner interest in NEP OpCo, and presents NEP's limited partner interest as a noncontrolling interest in NEE's consolidated financial statements. At September 30, 2017, NEE owned common units of NEP OpCo representing a noncontrolling interest in NEP’s operating projects of approximately 65.1%. The assets and liabilities of NEP were approximately $7.8 billion and $5.7 billion, respectively, at September 30, 2017, and $7.2 billion and $5.0 billion, respectively, at December 31, 2016, and primarily consisted of property, plant and equipment and long-term debt. During the third quarter of 2017, changes to NEP's governance structure were made that, among other things, enhanced NEP unitholder governance rights. As a result of these governance changes, NEE expects to deconsolidate NEP beginning in January 2018.

~~————————————~~A NEER VIE consolidates two entities which own and operate natural gas/oil electric generation facilities with the capability of producing 110 MW. These entities sell their electric output under power sales contracts to a third party, with expiration dates in 2018 and 2020. The power sales contracts provide the offtaker the ability to dispatch the facilities and require the offtaker to absorb the cost of fuel. The entities have third-party debt which is secured by liens against the generation facilities and the other assets of these entities. The debt holders have no recourse to the general credit of NEER for the repayment of debt. The assets and liabilities of the VIE were approximately $83 million and $28 million, respectively, at September 30, 2017 and $95 million and $42 million, respectively, at December 31, 2016, and consisted primarily of property, plant and equipment and long-term debt.

(Two indirect subsidiaries of NEER each contributed, to a) ~~Performance~~NEP ~~share~~subsidiary, ~~awards~~an ~~are~~approximately ~~included~~50% ownership interest in ~~diluted~~three ~~weighted-average~~entities ~~number~~which ofown ~~common~~and ~~shares~~operate ~~outstanding~~solar ~~based~~PV ~~upon~~facilities ~~what~~with ~~would~~the becapability ~~issued~~of ifproducing a total of approximately 277 MW. Each of the ~~end~~two indirect subsidiaries of NEER is considered a VIE since the ~~reporting~~non-managing ~~period~~members ~~was~~have no substantive rights over the ~~end~~managing members, and is consolidated by NEER. These three entities sell their electric output to third parties under power sales contracts with expiration dates in 2035 and 2036. The three entities have third-party debt which is secured by liens against the assets of the ~~term~~entities. The debt holders have no recourse to the general credit of NEER for the ~~award~~repayment of debt. ~~Performance~~The ~~share~~assets ~~awards~~and liabilities of these VIEs were approximately $574 million and $481 million, ~~options~~respectively, ~~equity~~at ~~units~~September 30, 2017 and ~~restricted~~$571 ~~stock~~million ~~are~~and ~~included~~$487 inmillion, ~~diluted~~respectively, ~~weighted-average~~at ~~number~~December 31, of2016, ~~common~~and ~~shares~~consisted ~~outstanding~~primarily byof ~~applying~~property, ~~the~~plant ~~treasury~~and ~~stock~~equipment ~~method~~and long-term debt.

~~Common~~NEER ~~shares~~consolidates ~~issuable~~a ~~pursuant~~special topurpose ~~stock~~entity ~~options,~~that ~~performance~~has ~~shares~~insufficient equity at risk and ~~restricted~~is ~~stock~~considered ~~awards~~a ~~which~~VIE. ~~were~~The ~~not~~entity ~~included~~provided a loan in the ~~denominator~~form ~~above~~of ~~due~~a note receivable (see Note 3 - Fair Value of Financial Instruments Recorded at Other than Fair Value) to ~~their~~an ~~antidilutive~~unrelated ~~effect~~third ~~were~~party, ~~approximately~~and 0also issued senior secured bonds which are collateralized by the note receivable.4 ~~million~~The assets and ~~0.6~~liabilities of the VIE were approximately $505 million ~~for~~and ~~the~~$493 ~~three~~million, ~~months~~respectively, ~~ended~~at ~~March~~September 30, 312017, ~~2013~~and $502 million and ~~2012~~$511 million, ~~respectively.~~

Accumulated Other Comprehensive Income (Loss) - The components of AOCI, net of tax, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges				Net Unrealized Gains (Losses) on Available for Sale Securities				Defined Benefit Pension and Other Benefits Plans			Net Unrealized Gains (Losses) on Foreign Currency Translation			Other Comprehensive Income (Loss) Related to Equity Method Investee			Total
	(millions)
Balances, December 31, 2012	$	(266	)		$	96			$	(74	)	$	12		$	(23	)	$	(255	)
Other comprehensive income (loss) before reclassifications	65				40				6			(9		)	1			103
Amounts reclassified from AOCI	21			(a)	(6		)	(b)	1			—			—			16
Net other comprehensive income (loss)	86				34				7			(9		)	1			119
Balances, March 31, 2013	$	(180	)		$	130			$	(67	)	$	3		$	(22	)	$	(136	)

————————————

(a) Reclassified to interest expense in NEE's condensed consolidated statements of income.

(b) Reclassified to other - net in NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

9respectively at December 31, 2016, and consisted primarily of notes receivables (included in other investments and classified as held for sale as of September 30, 2017) and long-term debt. ~~Debt~~

~~Significant~~The ~~long~~other twenty-~~term~~seven NEER VIEs that are consolidated relate to certain subsidiaries which have sold differential membership interests in entities which own and operate wind electric generation and solar PV facilities with the capability of producing a total of approximately 6,649 MW and 374 MW, respectively. These entities sell their electric output either under power sales contracts to third parties with expiration dates ranging from 2018 through 2051 or in the spot market. Certain investors that have no equity at risk in the VIEs hold differential membership interests, which give them the right to receive a portion of the economic attributes of the generation facilities, including certain tax attributes. Certain entities have third-party debt ~~issuances~~which is secured by liens against the generation facilities and ~~borrowings~~the other assets of these entities or by ~~subsidiaries~~pledges of ~~NEE~~NEER's ~~during~~ownership interest in these entities. The debt holders have no recourse to the ~~three~~general ~~months~~credit ~~ended~~of ~~March~~NEER for the repayment of debt. The assets and liabilities of these VIEs totaled approximately $10.5 billion and $5.9 billion, respectively, at September 30, 2017 and $10.9 billion and $6.9 billion, respectively, at December 31, ~~2013~~2016. ~~were~~At asSeptember 30, ~~follows:~~2017 and December 31, 2016, the assets and liabilities of the VIEs consisted primarily of property, plant and equipment, deferral related to differential membership interests and long-term debt.

Date Issued

Company

Debt Issuances/Borrowings

InterestRate

PrincipalAmount

MaturityDate

(millions)

January - March 2013

NEECH and NEER subsidiary

Canadian revolving credit agreements

Variable

(a)

Various

January - March 2013

NEER subsidiaries

Euro denominated senior secured limited-recourse loan

Variable

(a)(b)

2030

(c)

January - March 2013

NEECH and NEER subsidiary

Euro denominated revolving loan

Variable

(a)

2014

January - March 2013

Lone Star Transmission, LLC

Senior secured limited-recourse loan

Variable

(a)

2016

January 2013

NEECH

Junior subordinated debentures

5.00

450

2073

Other - As of September 30, 2017 and December 31, 2016, several NEE subsidiaries had investments totaling approximately $2,601 million ($2,133 million at FPL) and $2,505 million ($2,049 million at FPL), respectively, which are included in special use funds and other investments on NEE's condensed consolidated balance sheets and in special use funds on FPL's condensed consolidated balance sheets. These investments represented primarily commingled funds and mortgage-backed securities. NEE subsidiaries, including FPL, are not the primary beneficiary and therefore do not consolidate any of these entities because they do not control any of the ongoing activities of these entities, were not involved in the initial design of these entities and do not have a controlling financial interest in these entities.

~~(a)~~Certain ~~Variable~~subsidiaries ~~rate~~of NEE have noncontrolling interests in entities accounted for under the equity method. These entities are limited partnerships or similar entity structures in which the limited partners or nonmanaging members do not have substantive rights, and therefore are considered VIEs. NEE is ~~based~~not the primary beneficiary because it does not have a controlling financial interest in these entities, and therefore does not consolidate any of these entities. NEE’s investment in these entities totaled approximately $268 million and $234 million at September 30, 2017 and December 31, 2016, respectively, which are included in other investments on NEE’s condensed consolidated balance sheets. Subsidiaries of NEE had committed to invest an ~~underlying~~additional ~~index~~approximately ~~plus~~$90 amillion ~~margin~~in three of the entities as of September 30, 2017 and $30 million in two of the entities as of December 31, 2016.

~~(b) Interest rate swap agreements have been entered into with respect to these issuances~~7. ~~See Note 2.~~ Equity

~~(c)~~Earnings ~~See~~Per ~~Note~~Share 10 - ~~Commitments~~The ~~for~~reconciliation ~~discussion~~ of aNEE's ~~default~~basic onand ~~the~~diluted ~~senior~~earnings ~~secured~~per ~~limited-recourse~~share ~~loan.~~attributable to NEE is as follows:

10. Commitments and Contingencies



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(millions, except per share amounts)
Numerator - net income attributable to NEE	$	847	$	753	$	3,223	$	1,946
Denominator:
Weighted-average number of common shares outstanding - basic	469.4		463.3		468.3		461.7
Equity units, stock options, performance share awards, forward sale agreements and restricted stock^(a)	4.1		2.7		3.7		3.0
Weighted-average number of common shares outstanding - assuming dilution	473.5		466.0		472.0		464.7
Earnings per share attributable to NEE:
Basic	$	1.80	$	1.63	$	6.88	$	4.21
Assuming dilution	$	1.79	$	1.62	$	6.83	$	4.19

Commitments - NEE and its subsidiaries have made commitments in connection with a portion of their projected capital expenditures. Capital expenditures at FPL include, among other things, the cost for construction or acquisition of additional facilities and equipment to meet customer demand, as well as capital improvements to and maintenance of existing facilities and the procurement of nuclear fuel. At NEER, capital expenditures include, among other things, the cost, including capitalized interest, for construction of wind and solar projects and the procurement of nuclear fuel. Capital expenditures for Corporate and Other include, among other things, the cost to meet customer-specific requirements and maintain the fiber-optic network for the fiber-optic telecommunications business (FPL FiberNet) and the cost to maintain existing transmission facilities at NextEra Energy Transmission, LLC (NEET).———————————————


(a)	Calculated using the treasury stock method. Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award.

Common shares issuable pursuant to equity units, stock options and performance share awards, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were less than one million and approximately 11.2 million for the three months ended September 30, 2017 and 2016, respectively, and 4.1 million and 3.9 million for the nine months ended September 30, 2017 and 2016, respectively. NEP's senior unsecured convertible notes (see Note 8) are potentially dilutive securities, however, their effect on the calculation of NEE's diluted EPS for the three and nine months ended September 30, 2017 was not material.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

AtForward ~~March 31,~~Sale ~~2013~~Agreements - In November 2016, ~~estimated~~NEE ~~capital~~entered ~~expenditures~~into forward sale agreements with several forward counterparties for ~~the~~12 ~~remainder~~million shares of ~~2013~~its ~~through~~common stock to be settled on a date or dates to be specified at NEE's direction, no later than November 1, 2017. ~~were~~During the second and third quarters of 2017, NEE issued 1,711,345 shares of its common stock to net share settle all of the shares of its common stock under the forward sale agreements. The forward sale price used to determine the net share settlement amount was calculated based on the initial forward sale price of $124.00 per share, less certain adjustments as ~~follows:~~specified in the forward sale agreements.

	Remainder of 2013		2014		2015		2016		2017		Total
	(millions)
FPL:
Generation:(a)
New(b)(c)	$	585	$	760	$	250	$	175	$	—	$	1,770
Existing	525		685		650		555		530		2,945
Transmission and distribution	620		1,020		1,065		1,090		770		4,565
Nuclear fuel	225		140		210		220		225		1,020
General and other	150		150		105		120		115		640
Total(d)	$	2,105	$	2,755	$	2,280	$	2,160	$	1,640	$	10,940
NEER:
Wind(e)	$	205	$	45	$	5	$	5	$	5	$	265
Solar(f)	605		155		5		—		—		765
Nuclear(g)	225		275		250		330		285		1,365
Other(h)	200		45		115		50		50		460
Total	$	1,235	$	520	$	375	$	385	$	340	$	2,855
Corporate and Other	$	85	$	80	$	70	$	70	$	70	$	375

NEP Series A Preferred Unit Purchase Agreement - In June 2017, NEP entered into a Series A Preferred Unit Purchase Agreement to issue and sell, on or before December 31, 2017, $550 million of Series A convertible preferred units representing limited partner interests in NEP (NEP preferred units). When issued, holders of the NEP preferred units will be entitled to receive certain cumulative quarterly distributions from NEP, which may be paid, at NEP’s election and subject to certain limitations, in cash, additional NEP preferred units or a combination thereof. Each holder of NEP preferred units (together with its affiliates) may elect to convert all or any portion of its NEP preferred units into common units of NEP initially on a one-for-one basis, subject to certain adjustments (the conversion rate), at any time after June 20, 2019, subject to certain conditions. NEP may elect to convert all or a portion of the NEP preferred units into NEP common units based on the conversion rate at any time after the first anniversary of the date of issuance of the NEP preferred units being converted if certain conditions are met and subject to certain maximum conversion amounts prior to the third anniversary of the final closing date.

~~(a)~~Accumulated ~~Includes~~Other ~~allowance~~Comprehensive ~~for~~Income ~~funds used during construction~~ (~~AFUDC~~Loss) of- ~~approximately~~The ~~$56~~components ~~million,~~of ~~$55 million~~AOCI, ~~$46~~net ~~million~~of ~~and~~tax, ~~$26~~are ~~million~~as ~~in 2013 through 2016, respectively.~~follows:

(b) Includes land, generating structures, transmission interconnection and integration and licensing.



	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges				Net Unrealized Gains (Losses) on Available for Sale Securities				Defined Benefit Pension and Other Benefits Plans			Net Unrealized Gains (Losses) on Foreign Currency Translation			Other Comprehensive Income (Loss) Related to Equity Method Investee			Total
	(millions)
Three Months Ended September 30, 2017
Balances, June 30, 2017	$	(96	)		$	268			$	(76	)	$	(71	)	$	(22	)	$	3
Other comprehensive income before reclassifications	—				31				—			10			1			42
Amounts reclassified from AOCI	10			^(a)	(6		)	^(b)	(1		)	—			—			3
Net other comprehensive income (loss)	10				25				(1		)	10			1			45
Less other comprehensive income attributable to noncontrolling interests	(1		)		—				—			1			—			—
Balances, September 30, 2017	$	(85	)		$	293			$	(77	)	$	(62	)	$	(21	)	$	48

(c) Consists of projects that have received FPSC approval. Includes pre-construction costs and carrying charges (equal to a fixed pretax AFUDC rate) on construction costs recoverable through the capacity clause of approximately $27 million and $17 million in 2013 and 2014, respectively. Excludes capital expenditures for the construction costs for the two additional nuclear units at FPL's Turkey Point site beyond what is required to receive an NRC license for each unit.———————————————

(da) ~~FPL~~Reclassified ~~has identified $3 billion~~ to $4interest ~~billion~~expense in ~~potential~~NEE's ~~incremental~~condensed ~~capital~~consolidated ~~expenditures~~statements ~~through~~of ~~2016~~income. inSee ~~addition~~Note to2 ~~what~~- isIncome ~~included~~Statement inImpact ~~the~~of ~~table~~Derivative ~~above~~Instruments.

(eb) ~~Consists~~Reclassified ofto ~~capital~~gains ~~expenditures~~on ~~for~~disposal ~~new~~of ~~wind~~investments ~~projects~~ and ~~related~~other ~~transmission~~property ~~totaling~~- ~~approximately~~net ~~300 mw, including approximately 125 mw~~ in ~~Canada,~~NEE's ~~that~~condensed ~~have~~consolidated ~~received~~statements ~~applicable internal approvals. Excludes new Canadian wind projects requiring internal approvals with generation totaling approximately 470 mw in 2014 and 2015, with an estimated total cost~~ of ~~approximately $1~~income.~~3 billion to $1.7 billion. NEER expects to add 500 to 1,500 mw of new U.S. wind generation through 2014 at a total cost of approximately $1 billion to $3 billion.~~

(f) Consists of capital expenditures for new solar projects and related transmission totaling 645 mw that have received applicable internal approvals, including equity contributions associated with a 50% equity investment in a 550 mw solar project. Excludes solar projects requiring internal approvals with generation totaling 250 mw with an estimated cost of approximately $600 million to $

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