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 ~~September~~March 3031, ~~2012~~2013



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. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting 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 ¨
Florida Power & Light Company	Large Accelerated Filer ¨	Accelerated Filer ¨	Non-Accelerated Filer þ	Smaller Reporting Company ¨

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 of shares outstanding of NextEra Energy, Inc. common stock, as of the latest practicable date: Common Stock, $0.01 par value, outstanding as of ~~September~~March 3031, ~~2012~~2013: ~~423~~424,~~206~~638,~~077~~080 shares.

As of ~~September~~March 3031, ~~2012~~2013, there were issued and outstanding 1,000 shares of Florida Power & Light Company common stock, without par value, all of which were held, beneficially and of record, by NextEra Energy, Inc.

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

		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	3736
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5651
Item 4.	Controls and Procedures	5651
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	5651
Item 1A.	Risk Factors	5651
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5651
Item 5.	Other Information	5752
Item 6.	Exhibits	5853
Signatures		5954

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.

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, will ~~likely~~ result, are expected to, will continue, is anticipated, aim, believe, 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.'s (NEE) and/or Florida Power & Light Company'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 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 an appropriate return on 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 to, or the elimination of, governmental incentives that support renewable energy, including, but not limited to, tax incentives, renewable portfolio standards (RPS) or feed-in tariffs, 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 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, financial condition, results of operations and prospects could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of its provisions regarding the regulation of over-the-counter (OTC) financial derivatives and make them applicable to NEE and FPL.

• NEE and FPL are subject to numerous environmental laws, regulations and ~~regulations~~other standards that ~~require~~may result in capital expenditures, ~~increase~~increased ~~their~~operating ~~cost~~costs ~~of operations~~ and ~~may~~various ~~expose them to~~ 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 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, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could 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.

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 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.


•	If supply costs necessary to provide NEER's full energy and capacity requirement services are not favorable, operating costs could increase and adversely affect NEE's business, financial condition, results of operations and prospects.


•	Due to the potential for significant volatility in market prices for fuel, electricity and renewable and other energy commodities, NEER's inability or failure to hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures could significantly impair NEE's results of operations.


•	Sales of power on the spot market or on a short-term contractual basis may cause NEE's results of operations to be volatile.


•	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 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 an adverse impact to their reputation and/or the results of operations of the retail business.


•	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 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.

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.


•	U.S. Nuclear Regulatory Commission (NRC) 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.


•	The inability to operate any of NEER's or FPL's nuclear generation units through the end of their respective operating licenses could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.


•	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 adversely affect the results of operations and financial condition of NEE and FPL.


•	NEE's, NextEra Energy Capital Holdings, Inc.'s (NEECH) and FPL's inability to maintain their current credit ratings may 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 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 ~~and FPL's~~ defined benefit pension plan's funded status, which may materially adversely affect NEE's and FPL's liquidity and results of operations.


•	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 and results of operations.


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


•	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.


•	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, ~~2011 (2011 Form 10-K) and Part II, Item 1A. Risk Factors in NEE's and FPL's Quarterly Report on Form 10-Q for the quarterly period ended March 31,~~ 2012 (~~March~~ 2012 Form 10-QK), and investors should refer to ~~those~~that ~~sections~~section of the ~~2011 Form 10-K and the March~~ 2012 Form 10-QK. 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 September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
OPERATING REVENUES	$	3,~~843~~279		$	43,~~382~~371		$	~~10,881~~		$	~~11,476~~
OPERATING EXPENSES
Fuel, purchased power and interchange	1,~~526~~065			1,~~911~~182			~~3,943~~			~~4,872~~
Other operations and maintenance	~~776~~756			~~748~~775			~~2,347~~			~~2,212~~
Impairment charges	—			—			—			51
Impairment charge	300			—
Depreciation and amortization	~~467~~419			~~496~~320			~~1,121~~			~~1,236~~
Taxes other than income taxes and other	~~325~~305			~~316~~291			~~855~~			~~859~~
Total operating expenses	32,~~094~~845			32,~~471~~568			~~8,266~~			~~9,230~~
OPERATING INCOME	~~749~~434			~~911~~803			~~2,615~~			~~2,246~~
OTHER INCOME (DEDUCTIONS)
Interest expense	(~~259~~272		)	(265		)	~~(795~~		)	~~(775~~		)
Loss on natural gas-fired generating assets held for sale	—			(148		)	—			(148		)
Benefits associated with differential membership interests - net	40			41
Equity in earnings of equity method investees	16			28			17			57
Allowance for equity funds used during construction	26			13
Allowance for equity funds used during construction	21			7			52			28
Interest income	19			20
Interest income	20			21			62			58
Other - net	5			6
Gains on disposal of assets - net	53			37			120			79
Total other deductions - net	(182		)	(185		)
Other than temporary impairment losses on securities held in nuclear decommissioning funds	(4		)	(30		)	(11		)	(34		)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	252			618
Other - net	(27		)	4			(25		)	18
INCOME TAXES	168			157
Total other deductions - net	(180		)	(346		)	(580		)	(717		)
INCOME FROM CONTINUING OPERATIONS	84			461
INCOME BEFORE INCOME TAXES	569			565			2,035			1,529
NET GAIN FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	188			—
INCOME TAXES	154			158			553			273
NET INCOME	$	272		$	461
NET INCOME	$	415		$	407		$	1,482		$	1,256
Basic earnings per share of common stock:
Earnings per share of common stock:
Continuing operations	$	0.20		$	1.12
Basic	$	0.99		$	0.98		$	3.57		$	3.01
Discontinued operations	0.45			—
Assuming dilution	$	0.98		$	0.97		$	3.55		$	3.00
Net income	$	0.65		$	1.12
Dividends per share of common stock	$	0.60		$	0.55		$	1.80		$	1.65
Earnings per share of common stock - assuming dilution:
Weighted-average number of common shares outstanding:
Continuing operations	$	0.20		$	1.11
Basic	419.3			417.4			415.6			416.7
Discontinued operations	0.44			—
Assuming dilution	421.7			419.8			418.0			419.1
Net income	$	0.64		$	1.11
Dividends per share of common stock	$	0.66		$	0.60
Weighted-average number of common shares outstanding:
Basic	421.0			412.3
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 ~~2011~~2012 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
NET INCOME	$	~~415~~272		$	~~407~~461		$	~~1,482~~		$	~~1,256~~
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Net unrealized gains (losses) on cash flow hedges:
Effective portion of net unrealized losses (net of $15, $92, $41 and $125 tax benefit, respectively)	(30		)	(158		)	(79		)	(248		)
Effective portion of net unrealized gains (losses) (net of $27 tax expense and $2 tax benefit, respectively)	65			(7		)
Reclassification from accumulated other comprehensive income to net income (net of $7, $10, $18 and $18 tax expense, respectively)	3			16			24			36
Reclassification from accumulated other comprehensive income to net income (net of $13 and $9 tax expense, respectively)	21			16
Net unrealized gains (losses) on available for sale securities:
Net unrealized gains (losses) on securities still held (net of $18 tax expense, $27 tax benefit, $44 tax expense and $12 tax benefit, respectively)	26			(43		)	64			(20		)
Net unrealized gains on securities still held (net of $26 and $31 tax expense, respectively)	40			47
Reclassification from accumulated other comprehensive income to net income (net of $18, $17, $43 and $32 tax benefit, respectively)	(27		)	(25		)	(64		)	(47		)
Reclassification from accumulated other comprehensive income to net income (net of $4 and $4 tax benefit, respectively)	(6		)	(5		)
Defined benefit pension and other benefits plans (net of $3 tax benefit and $4 tax expense, respectively)	—			—			(6		)	6
Defined benefit pension and other benefits plans (net of $4 tax expense and $8 tax benefit, respectively)	7			(12		)
Net unrealized gains (losses) on foreign currency translation (net of $2 tax expense, $10 tax benefit, $3 tax expense and $4 tax benefit, respectively)	3			(19		)	6			(7		)
Net unrealized gains (losses) on foreign currency translation (net of $5 tax benefit and $3 tax expense, respectively)	(9		)	6
Other comprehensive loss related to equity method investee (net of $3 and $7 tax benefit, respectively)	(4		)	—			(10		)	—
Other comprehensive income related to equity method investee (net of less than a million and $4 tax benefit, respectively)	1			15
Total other comprehensive loss, net of tax	(29		)	(229		)	(65		)	(280		)
Total other comprehensive income, net of tax	119			60
COMPREHENSIVE INCOME	$	~~386~~391		$	~~178~~521		$	~~1,417~~		$	~~976~~

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2011~~2012 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except par value)

(unaudited)

	September 30, 2012			December 31, 2011
	March 31, 2013			December 31, 2012
PROPERTY, PLANT AND EQUIPMENT
Electric utility plant in service and other property	$	54,262		$	50,768
Electric plant in service and other property	$	57,725		$	57,054
Nuclear fuel	1,~~994~~860			1,~~795~~895
Construction work in progress	75,~~174~~905			45,~~989~~968
Less accumulated depreciation and amortization	(15,~~737~~666		)	(15,~~062~~504		)
Total property, plant and equipment - net ($3,900 and $3,063 related to VIEs, respectively)	47,693			42,490
Total property, plant and equipment - net ($4,450 and $4,487 related to VIEs, respectively)	49,824			49,413
CURRENT ASSETS
Cash and cash equivalents	~~246~~215			~~377~~329
Customer receivables, net of allowances of $14 and $11, respectively	1,633			1,372
Customer receivables, net of allowances of $8 and $10, respectively	1,366			1,487
Other receivables	~~489~~393			~~430~~569
Materials, supplies and fossil fuel inventory	1,~~055~~098			1,~~074~~073
Regulatory assets:
Deferred clause and franchise expenses	54104			~~112~~75
Derivatives	59			502
Other	106			113
Other	87			84
Derivatives	486			517
Derivatives	482			611
Deferred income taxes	10			397
Other	332			310
Assets held for sale	—			335
Total current assets	4,437			4,872
Other	267			342
Total current assets	4,045			5,237
OTHER ASSETS
Special use funds	4,~~223~~413			34,~~867~~190
Other investments	~~971~~981			~~907~~976
Prepaid benefit costs	1,~~093~~049			1,~~021~~031
Regulatory assets:
Securitized storm-recovery costs ($284 and $317 related to a VIE, respectively)	462			517
Securitized storm-recovery costs ($270 and $274 related to a VIE, respectively)	447			461
Other	~~524~~628			~~621~~582
Derivatives	~~944~~902			~~973~~920
Other	1,~~702~~554			1,~~920~~629
Total other assets	9,~~919~~974			9,~~826~~789
TOTAL ASSETS	$	6263,~~049~~843		$	5764,~~188~~439
CAPITALIZATION
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 423 and 416, respectively)	$	4		$	4
Common stock ($0.01 par value, authorized shares - 800; outstanding shares - 425 and 424, respectively)	$	4		$	4
Additional paid-in capital	5,~~494~~557			5,~~217~~536
Retained earnings	10,~~607~~777			910,~~876~~783
Accumulated other comprehensive loss	(~~219~~136		)	(~~154~~255		)
Total common shareholders' equity	1516,~~886~~202			1416,~~943~~068
Long-term debt ($1,301 and $1,364 related to VIEs, respectively)	22,714			20,810
Long-term debt ($1,321 and $1,369 related to VIEs, respectively)	22,866			23,177
Total capitalization	3839,~~600~~068			3539,~~753~~245
CURRENT LIABILITIES
Commercial paper	1,~~053~~501			1,~~349~~211
Short-term debt	~~521~~875			—200
Current maturities of long-term debt	2,~~062~~682			~~808~~2,771
Accounts payable	1,~~194~~094			1,~~191~~281
Customer deposits	~~513~~506			~~547~~508
Accrued interest and taxes	~~703~~479			~~464~~414
Derivatives	~~486~~419			~~1,090~~430
Accrued construction-related expenditures	~~512~~371			~~518~~427
Other	831			752
Liabilities associated with assets held for sale	—			733
Total current liabilities	7,875			6,719
Other	849			904
Total current liabilities	8,776			8,879
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	1,~~685~~739			1,~~611~~715
Accumulated deferred income taxes	6,166			5,681
Deferred income taxes	6,660			6,703
Regulatory liabilities:
Accrued asset removal costs	21,~~017~~809			21,~~197~~950
Asset retirement obligation regulatory expense difference	1,~~814~~927			1,~~640~~813
Other	~~361~~363			~~419~~309
Derivatives	~~530~~391			~~541~~587
Deferral related to differential membership interests - VIEs	1,~~498~~739			1,~~203~~784
Other	1,~~503~~371			1,~~424~~454
Total other liabilities and deferred credits	15,~~574~~999			1416,~~716~~315
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	6263,~~049~~843		$	5764,~~188~~439

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2011~~2012 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2012			2011
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	~~1,482~~272		$	~~1,256~~461
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	~~1,121~~419			~~1,236~~320
Nuclear fuel amortization	194			210
Nuclear fuel and other amortization	81			76
Loss on natural gas-fired generating assets held for sale	—			148
Impairment charge	300			—
Impairment charges	—			51
Unrealized losses (gains) on marked to market energy contracts	42			(132		)
Unrealized losses (gains) on marked to market energy contracts	(89		)	182
Deferred income taxes	363			134
Deferred income taxes	517			274
Cost recovery clauses and franchise fees	(19		)	48
Cost recovery clauses and franchise fees	115			71
Changes in prepaid option premiums and derivative settlements	13			(1		)
Changes in prepaid option premiums and derivative settlements	(36		)	23
Benefits associated with differential membership interests - net	(40		)	(41		)
Equity in earnings of equity method investees	(17		)	(57		)
Allowance for equity funds used during construction	(26		)	(13		)
Distributions of earnings from equity method investees	20			67
Net gain from discontinued operations, net of income taxes	(188		)	—
Allowance for equity funds used during construction	(52		)	(28		)
Other - net	85			44
Gains on disposal of assets - net	(120		)	(79		)
Other than temporary impairment losses on securities held in nuclear decommissioning funds	11			34
Other - net	236			121
Changes in operating assets and liabilities:
Customer receivables	(255		)	(228		)
Customer and other receivables	136			59
Other receivables	(92		)	56
Materials, supplies and fossil fuel inventory	(25		)	(18		)
Materials, supplies and fossil fuel inventory	21			(269		)
Other current assets	(10		)	(24		)
Other current assets	(51		)	(27		)
Other assets	(25		)	40
Other assets	(50		)	(83		)
Accounts payable	42			(75		)
Accounts payable	1			30
Margin cash collateral	(2		)	75
Customer deposits	(34		)	5
Income taxes	(205		)	8
Margin cash collateral	110			(28		)
Interest and other taxes	74			66
Income taxes	(6		)	106
Other current liabilities	(219		)	(168		)
Interest and other taxes	270			259
Other liabilities	14			(24		)
Other current liabilities	(27		)	(83		)
Net cash provided by operating activities	1,082			835
Other liabilities	(112		)	(130		)
Net cash provided by operating activities	3,157			3,117
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL	(~~3,061~~810		)	(21,~~128~~084		)
Independent power and other investments of NEER	(~~3,025~~972		)	(~~1,654~~740		)
Cash grants under the American Recovery and Reinvestment Act of 2009	~~105~~170			~~503~~—
Nuclear fuel purchases	(~~202~~24		)	(~~331~~44		)
Other capital expenditures	(~~401~~61		)	(~~204~~146		)
Change in loan proceeds restricted for construction	~~212~~112			~~(596~~45		)
Proceeds from sale or maturity of securities in special use funds	~~3,890~~924			~~3,567~~936
Purchases of securities in special use funds	(~~3,994~~946		)	(~~3,638~~973		)
Proceeds from sale or maturity of other securities	~~219~~81			~~399~~99
Purchases of other securities	(~~259~~68		)	(~~431~~95		)
Other - net	1516			917
Net cash used in investing activities	(61,~~501~~578		)	(41,~~422~~995		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	~~4,226~~623			~~2,917~~566
Retirements of long-term debt	(~~1,321~~923		)	(~~1,688~~134		)
Proceeds from sale of differential membership interests	~~414~~—			~~210~~303
Payments to differential membership investors	(5320		)	—
Net change in short-term debt	~~396~~966			~~946~~582
Issuances of common stock - net	~~386~~8			3912
Repurchases of common stock	~~(19~~—		)	—(19		)
Dividends on common stock	(~~752~~279		)	(~~689~~248		)
Other - net	~~(64~~7		)	(924		)
Net cash provided by financing activities	~~3,213~~382			1,~~643~~058
Net increase (decrease) in cash and cash equivalents	(131		)	338
Net decrease in cash and cash equivalents	(114		)	(102		)
Cash and cash equivalents at beginning of period	~~377~~329			~~302~~377
Cash and cash equivalents at end of period	$	~~246~~215		$	~~640~~275
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	~~943~~674		$	~~851~~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 ~~2011~~2012 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

2012

2011

2012

2011

2013

2012

OPERATING REVENUES

2,~~975~~188

32,~~152~~224

~~7,778~~

~~8,200~~

OPERATING EXPENSES

Fuel, purchased power and interchange

~~1,280~~820

~~1,479~~935

~~3,301~~

~~3,854~~

Other operations and maintenance

~~427~~385

~~429~~436

~~1,305~~

~~1,237~~

Depreciation and amortization

~~254~~181

~~299~~118

~~496~~

~~653~~

Taxes other than income taxes and other

~~295~~259

~~289~~254

~~814~~

~~822~~

Total operating expenses

21,~~256~~645

21,~~496~~743

~~5,916~~

~~6,566~~

OPERATING INCOME

~~719~~543

~~656~~481

~~1,862~~

~~1,634~~

OTHER INCOME (DEDUCTIONS)

Interest expense

(~~104~~102

)

(~~101~~104

)

~~(314~~

)

~~(287~~

)

Allowance for equity funds used during construction

1418

610

Other - net

—1

1—

—

)

Total other deductions - net

(9083

)

(94

)

~~(278~~

)

~~(263~~

)

INCOME BEFORE INCOME TAXES

~~629~~460

~~562~~387

~~1,584~~

~~1,371~~

INCOME TAXES

~~237~~172

~~215~~148

~~600~~

~~519~~

NET INCOME(a)

~~392~~288

~~347~~239

~~984~~

~~852~~

__________________________________


(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 ~~2011~~2012 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

(unaudited)

	September 30, 2012			December 31, 2011
	March 31, 2013			December 31, 2012
ELECTRIC UTILITY PLANT
Plant in service and other property	$	3334,~~981~~371		$	3134,~~564~~474
Nuclear fuel	1,~~148~~138			1,~~005~~190
Construction work in progress	2,~~492~~920			2,~~601~~585
Less accumulated depreciation and amortization	(10,~~915~~598		)	(10,~~916~~698		)
Total electric utility plant - net	2627,~~706~~831			2427,~~254~~551
CURRENT ASSETS
Cash and cash equivalents	2035			3640
Customer receivables, net of allowances of $10 and $8, respectively	986			682
Customer receivables, net of allowances of $5 and $7, respectively	646			760
Other receivables	~~239~~529			~~312~~447
Materials, supplies and fossil fuel inventory	~~736~~729			~~759~~727
Regulatory assets:
Deferred clause and franchise expenses	54104			~~112~~75
Derivatives	59			502
Other	98			106
Other	83288			80131
Other	132			166
Total current assets	2,429			2,286
Total current assets	2,309			2,649
OTHER ASSETS
Special use funds	23,~~967~~064			2,~~737~~918
Prepaid benefit costs	1,~~124~~145			1,~~088~~135
Regulatory assets:
Securitized storm-recovery costs ($284 and $317 related to a VIE, respectively)	462			517
Securitized storm-recovery costs ($270 and $274 related to a VIE, respectively)	447			461
Other	~~336~~385			~~395~~351
Other	~~216~~153			~~176~~151
Total other assets	5,~~105~~194			45,~~913~~016
TOTAL ASSETS	$	3435,~~120~~454		$	3134,~~816~~853
CAPITALIZATION
Common stock (no par value, 1,000 shares authorized, issued and outstanding)	$	1,373		$	1,373
Additional paid-in capital	5,~~703~~903			5,~~464~~903
Retained earnings	45,~~998~~202			45,~~013~~254
Total common shareholder's equity	12,~~074~~478			1012,~~850~~530
Long-term debt ($386 and $437 related to a VIE, respectively)	7,632			7,483
Long-term debt ($357 and $386 related to a VIE, respectively)	8,301			8,329
Total capitalization	1920,~~706~~779			1820,~~333~~859
CURRENT LIABILITIES
Commercial paper	~~472~~405			~~330~~105
Current maturities of long-term debt	452			50
Short-term debt	500			—
Accounts payable	672			678
Current maturities of long-term debt	54			453
Customer deposits	508			541
Accounts payable	618			612
Accrued interest and taxes	486			221
Customer deposits	501			503
Derivatives	67			512
Accrued interest and taxes	295			223
Accrued construction-related expenditures	~~210~~176			~~261~~235
Other	~~384~~452			~~373~~495
Total current liabilities	3,~~251~~001			2,~~966~~626
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	1,~~190~~222			1,~~144~~206
Accumulated deferred income taxes	5,248			4,593
Deferred income taxes	5,895			5,584
Regulatory liabilities:
Accrued asset removal costs	21,~~017~~809			21,~~197~~950
Asset retirement obligation regulatory expense difference	1,~~814~~927			1,~~640~~813
Other	~~361~~362			~~416~~309
Other	~~533~~459			~~527~~506
Total other liabilities and deferred credits	11,~~163~~674			1011,~~517~~368
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	3435,~~120~~454		$	3134,~~816~~853

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2011~~2012 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2012			2011
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	~~984~~288		$	~~852~~239
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	~~496~~181			~~653~~118
Nuclear fuel amortization	74			111
Nuclear fuel and other amortization	34			27
Deferred income taxes	~~656~~238			~~439~~265
Cost recovery clauses and franchise fees	~~115~~(19		)	7148
Allowance for equity funds used during construction	(3618		)	(2610		)
Other - net	5142			216
Changes in operating assets and liabilities:
Customer receivables	(305		)	(286		)
Customer and other receivables	106			53
Other receivables	16			14
Materials, supplies and fossil fuel inventory	(2		)	(22		)
Materials, supplies and fossil fuel inventory	24			(219		)
Other current assets	(17		)	(21		)
Other current assets	(35		)	(33		)
Other assets	(10		)	(11		)
Other assets	(41		)	(48		)
Accounts payable	74			6
Accounts payable	60			69
Income taxes	(66		)	(117		)
Customer deposits	(32		)	4
Interest and other taxes	81			77
Income taxes	74			(67		)
Other current liabilities	(127		)	(107		)
Interest and other taxes	264			228
Other liabilities	(9		)	7
Other current liabilities	(55		)	1
Net cash provided by operating activities	776			558
Other liabilities	(8		)	(36		)
Net cash provided by operating activities	2,302			1,748
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(~~3,061~~810		)	(21,~~128~~084		)
Cash grants under the American Recovery and Reinvestment Act of 2009	—			202
Nuclear fuel purchases	(11		)	(28		)
Nuclear fuel purchases	(137		)	(223		)
Proceeds from sale or maturity of securities in special use funds	685			727
Proceeds from sale or maturity of securities in special use funds	2,949			2,483
Purchases of securities in special use funds	(701		)	(758		)
Purchases of securities in special use funds	(3,031		)	(2,534		)
Other - net	(1		)	26
Other - net	27			32
Net cash used in investing activities	(838		)	(1,117		)
Net cash used in investing activities	(3,253		)	(2,168		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	594			248
Retirements of long-term debt	(427		)	(25		)
Retirements of long-term debt	(50		)	(45		)
Net change in short-term debt	800			507
Net change in short-term debt	142			307
Capital contribution from NEE	—			40
Capital contribution from NEE	240			310
Dividends to NEE	(340		)	—
Dividends to NEE	—			(400		)
Other - net	24			17
Other - net	9			10
Net cash provided by financing activities	57			539
Net cash provided by financing activities	935			430
Net decrease in cash and cash equivalents	(5		)	(20		)
Net increase (decrease) in cash and cash equivalents	(16		)	10
Cash and cash equivalents at beginning of period	40			36
Cash and cash equivalents at beginning of period	36			20
Cash and cash equivalents at end of period	$	35		$	16
Cash and cash equivalents at end of period	$	20		$	30
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	~~445~~339		$	~~420~~560

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the ~~2011~~2012 Form 10-K.

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 ~~2011~~2012 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						Other Benefits						~~Pension Benefits~~						~~Other Benefits~~
	Three Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,						Three Months Ended March 31,
	2012			2011			2012			2011			2012			2011			2012			2011
	2013			2012			2013			2012
	(millions)
Service cost	$	1618		$	16		$	1		$	21		$	49		$	48		$	4		$	5
Interest cost	2524			25			4			5			74			74			13			16
Expected return on plan assets	(60		)	(60		)	—			(1—		)	~~(179~~		)	~~(179~~		)	(1		)	(2		)
Amortization of transition obligation	—			—			—			1			—			—			1			2
Amortization of prior service cost (benefit)	12			(1		)	(1		)	—			3			(2		)	—			—
Net periodic benefit (income) cost at NEE	$	(18	)	$	(20	)	$	4		$	7		$	(53	)	$	(59	)	$	17		$	21
Amortization of losses	1			—			1			—
Net periodic benefit (income) cost at FPL	$	(11	)	$	(13	)	$	3		$	5		$	(34	)	$	(39	)	$	13		$	16
Net periodic benefit (income) cost at NEE	$	(15	)	$	(18	)	$	5		$	7
Net periodic benefit (income) cost at FPL	$	(10	)	$	(11	)	$	3		$	5

2. Derivative Instruments

NEE and FPL use derivative instruments (primarily swaps, options, futures and forwards) to manage the commodity price risk inherent in the purchase and sale of fuel and electricity, as well as interest rate and foreign currency exchange rate risk associated with outstanding and forecasted debt issuances, and to optimize the value of NEER's power generation assets.

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 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 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 NEER against adverse changes in the wholesale forward commodity markets associated with its generation 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 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 against 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. 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 ~~September~~March 3031, ~~2012~~2013, NEE's accumulated other comprehensive income (AOCI) included amounts related to ~~discontinued commodity cash flow hedges with expiration dates through December 2012;~~ interest rate cash flow hedges with expiration dates through December 2030; and foreign currency cash flow hedges with expiration dates through September 2030. Approximately $3945 million of net losses included in AOCI at ~~September~~March 3031, ~~2012~~2013 is expected to be reclassified into earnings within the next 12 months as ~~either~~ the principal and/or interest payments are made ~~or electricity is sold~~. Such amounts assume no change in ~~power prices,~~ interest rates, currency exchange rates or scheduled principal payments.

In the third quarter of 2011, a subsidiary of NEER entered into an agreement to sell its ownership interest in four natural gas-fired generating plants. See Note 3 - Nonrecurring Fair Value Measurements. Certain of the plants had hedged their exposure to interest rate and commodity price fluctuations by entering into derivative contracts. Because the plants were being sold to a third party, it became no longer probable that the future hedged transactions would occur. Therefore, NEE was required to reclassify any gains or losses in AOCI related to those hedges to earnings. During the three and nine months ended September 30, 2011, NEE reclassified approximately $21 million of net losses to earnings, $30 million of losses were recorded in loss on natural gas-fired generating assets held for sale and $9 million of gains were recorded in other - net.

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
	September 30, 2012			December 31, 2011			September 30, 2012				December 31, 2011
	March 31, 2013			December 31, 2012			March 31, 2013				December 31, 2012
	(millions)
Current derivative assets(a)	$	~~482~~486		$	~~611~~517		$	8136		(b)	$	104		(b)
Noncurrent derivative assets(c)	~~944~~902			~~973~~920			329			(d)	21			(d)
Current derivative liabilities(e)	(~~486~~419		)	(~~1,090~~430		)	(671		)	(f)	(~~512~~20		)	(f)
Noncurrent derivative liabilities(f)	(530		)	(541		)	—				(1		)	(g)
Noncurrent derivative liabilities	(391		)	(587		)	—				—
Total mark-to-market derivative instrument assets (liabilities)	$	~~410~~578		$	~~(47~~420	)	$	~~(27~~144	)		$	(~~501~~15	)

————————————

(a) At ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, NEE's balances reflect the netting of approximately $4033 million and $~~106~~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 ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, NEE's balances reflect the netting of approximately $~~154~~130 million and $~~109~~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 ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, NEE's balances reflect the netting of approximately $7443 million and $~~112~~79 million (none at FPL), respectively, in margin cash collateral provided to counterparties.

(f) AtIncluded ~~December~~in ~~31,~~current ~~2011,~~other ~~NEE's~~liabilities ~~balance~~on ~~reflects the netting of approximately $79 million (none at~~ FPL)'s incondensed ~~margin~~consolidated ~~cash~~balance ~~collateral provided to counterparties~~sheets.

At March 31, 2013 and December 31, 2012, NEE had approximately $22 million and $30 million (gnone at FPL), ~~Included~~respectively, in ~~noncurrent~~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)

AtAs ~~September 30,~~discussed ~~2012 and December 31~~above, ~~2011,~~ NEE ~~had~~uses ~~approximately~~derivative ~~$44~~instruments ~~million~~to, ~~and~~among ~~$22~~other ~~million (none at FPL)~~things, ~~respectively,~~manage inits ~~margin~~commodity ~~cash~~price ~~collateral~~risk, ~~received~~interest ~~from~~rate ~~counterparties~~risk ~~that~~and ~~was~~foreign ~~not~~currency ~~offset~~exchange ~~against~~rate ~~derivative assets~~risk. ~~These~~The ~~amounts~~table ~~are~~above ~~included~~presents ~~in current other liabilities on~~ NEE's ~~condensed~~and ~~consolidated~~FPL's ~~balance~~net ~~sheets. Additionally,~~derivative positions at ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, ~~NEE~~which ~~had~~reflect ~~approximately~~the ~~$54~~offsetting ~~million~~of ~~and~~positions ~~$50~~of ~~million~~certain ~~(none~~transactions atwithin ~~FPL),~~the ~~respectively~~portfolio, inthe contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral ~~provided~~(see toNote ~~counterparties~~3 ~~that~~- ~~was~~Recurring ~~not~~Fair ~~offset~~Value ~~against~~Measurements ~~derivative~~for ~~liabilities~~netting information). ~~These~~However, ~~amounts~~disclosure ~~are~~rules ~~included~~require inthat ~~current~~the ~~other~~following ~~assets~~tables onbe ~~NEE's~~presented ~~condensed~~on ~~consolidated~~a ~~balance~~gross ~~sheets~~basis.

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 September 30, 2012 and December 31, 2011, 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. 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.

	September 30, 2012				December 31, 2011
	March 31, 2013				December 31, 2012
	DerivativeAssets		DerivativeLiabilities		DerivativeAssets		DerivativeLiabilities
	(millions)
Interest rate swaps:
Current derivative assets	$	2630	$	—	$	2230	$	—
Current derivative liabilities	—		97187		—		60104
Noncurrent derivative assets	5443		—		1546		—
Noncurrent derivative liabilities	—		~~294~~97		—		~~260~~283
Foreign currency swap:
Foreign currency swaps:
Current derivative liabilities	—		34		—		35
Noncurrent derivative liabilities	—		534		—		328
Total	$	8073	$	~~399~~322	$	3776	$	~~326~~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 September 30,
	Three Months Ended March 31,
	2012															2011
	2013													2012
	CommodityContracts				InterestRateSwaps				ForeignCurrencySwap				Total			CommodityContracts				InterestRateSwaps				ForeignCurrencySwaps				Total
		InterestRateSwaps				ForeignCurrencySwaps				Total				CommodityContracts			InterestRateSwaps				ForeignCurrencySwap				Total
	(millions)
Gains (losses) recognized in OCI	$	—$	100		$	~~(39~~$	)(8	)	$	(6$	)92		$	~~(45~~$	)—	$	—$	1		$	~~(236~~$	)(10	)	$	~~(14~~$	)(9	)	$	~~(250~~	)
Gains (losses) reclassified from AOCI to net income(a)	$	2$	(15	)	$	~~(14~~$	)(19	)	$(b)	2$	(34	(b)	$	~~(10~~$	)1	$	11$	(16	)	$	~~(21~~$	)(10	)	$(b)	5$	(25	(b)	$	(5	)

————————————

(a) Included in operating revenues for commodity contracts and interest expense for interest rate swaps. ~~In 2011, excludes approximately $21 million of net losses related to discontinuance of certain cash flow hedges. See further discussion above.~~


(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)

	Nine Months Ended September 30,
	March 31, 2013													December 31, 2012
	2012													2011
	NEE					FPL								NEE					FPL
	CommodityContracts		InterestRateSwaps			ForeignCurrencySwap				Total				CommodityContracts		InterestRateSwaps			ForeignCurrencySwaps				Total
	DerivativeAssets		DerivativeLiabilities			DerivativeAssets				DerivativeLiabilities				DerivativeAssets		DerivativeLiabilities			DerivativeAssets				DerivativeLiabilities
	(millions)
Gains (losses) recognized in OCI	$	—	$	(104	)	$	(16	)		$	(120	)		$	—	$	(353	)	$	(20	)		$	(373	)
Commodity contracts:
Gains (losses) reclassified from AOCI to net income(a)	$	6	$	(44	)	$	(4	)	(b)	$	(42	)		$	30	$	(64	)	$	1		(c)	$	(33	)
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

————————————

(a) Included in operating revenues for commodity contracts and interest expense for interest rate swaps. In 2011, excludes approximately $21 million of net losses related to discontinuance of certain cash flow hedges. See further discussion above.

(b) Loss of approximately $2 million is included in interest expense and the balance is included in other - net.

For the three and nine months ended September 30, 2012, NEE recorded a gain of approximately $6 million and $41 million, respectively, on six fair value hedges which resulted in a corresponding increase in the related debt. For the three and nine months ended September 30, 2011, NEE recorded a gain of approximately $16 million and $19 million, respectively, on six fair value hedges which resulted in a corresponding increase in the related debt.

	September 30, 2012										December 31, 2011
	NEE				FPL						NEE				FPL
	DerivativeAssets		DerivativeLiabilities		DerivativeAssets			DerivativeLiabilities			DerivativeAssets		DerivativeLiabilities		DerivativeAssets			DerivativeLiabilities
	(millions)
Commodity contracts:
Current derivative assets	$	922	$	426	$	12	(a)	$	4	(a)	$	1,127	$	432	$	11	(a)	$	1	(a)
Current derivative liabilities	1,775		2,233		43			110			3,358		4,494		1			513
Noncurrent derivative assets	1,913		884		32		(b)	—			1,290		250		2		(b)	—
Noncurrent derivative liabilities	233		464		—			—			1,222		1,579		—			1		(c)
Foreign currency swap:
Current derivative liabilities	—		2		—			—			—		3		—			—
Noncurrent derivative assets	15		—		—			—			27		—		—			—
Total	$	4,858	$	4,009	$	87		$	114		$	7,024	$	6,758	$	14		$	515


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

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

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
	(millions)
Commodity contracts(a):
Commodity contracts:(a)
Operating revenues	$	(~~218~~42	)	$	~~(50~~190	)	$	~~102~~		$	~~(48~~	)
Fuel, purchased power and interchange	(43		)	10(11		)	36			8
Foreign currency swap - other - net	9(32		)	23(37		)	~~(13~~		)	20
Interest rate contracts - other - net	—			(16		)	—			(11		)
Total	$	(71	)	$	142
Total	$	(213	)	$	(33	)	$	125		$	(31	)

————————————

(a) For the three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012, FPL recorded approximately $90144 million of gains and $~~232~~252 million of losses, respectively, related to commodity contracts as regulatory liabilities and regulatory assets, respectively, on its condensed consolidated balance sheets. For the nine months ended September 30, 2012 and 2011, FPL recorded approximately $86 million and $300 million of losses, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets.

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 ~~September~~March 3031, ~~2012~~2013, NEE and FPL had derivative commodity contracts for the following net notional volumes:

Commodity Type	NEE			FPL
	(millions)
Power	(46118	)	mwh(a)	—
Natural gas	1,~~221~~262		mmbtu(b)	~~837~~846	mmbtu(b)
Oil	(72	)	barrels	—

————————————


(a)	Megawatt-hours


(b)	One million British thermal units

At ~~September~~March 3031, ~~2012~~2013, NEE had interest rate contracts with a notional amount totaling approximately $67.92 billion and foreign currency swaps with a notional amount totaling approximately $~~544~~662 million.

~~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 September 30, 2012, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $2.2 billion ($115 million for FPL).16

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 $350 million ($10 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 $2.2 billion ($500 million 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 $600 million ($100 million at FPL).

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~Collateral~~Certain ~~may be posted in the form~~ of ~~cash or credit support. At September 30, 2012,~~ NEE's ~~had~~and ~~posted approximately $210 million (none at~~ FPL)'s inderivative ~~the~~instruments ~~form~~contain ofcredit-risk-related ~~letters~~contingent offeatures ~~credit~~including, ~~related~~among toother ~~derivatives~~things, in the ~~normal~~requirement ~~course~~to ofmaintain ~~business~~an ~~which~~investment ~~could~~grade becredit ~~applied~~rating ~~toward~~from ~~the~~specified ~~collateral~~credit ~~requirements~~rating ~~described~~agencies ~~above. FPL~~ and ~~NEECH~~certain ~~have~~financial ~~credit~~ratios, ~~facilities~~as inwell ~~excess~~as ofcredit-related ~~the~~cross-default ~~collateral~~and ~~requirements~~material ~~described~~adverse ~~above~~change ~~that~~triggers. At ~~would be available to support~~March 31, ~~among other things~~2013, ~~derivative~~the ~~activities. Under~~aggregate ~~the~~fair ~~terms~~value of ~~the~~NEE's ~~credit~~derivative ~~facilities,~~instruments ~~maintenance~~with ofcredit-risk-related acontingent ~~specific~~features ~~credit~~that ~~rating~~were isin ~~not~~ a ~~condition~~liability toposition ~~drawing~~was onapproximately ~~these~~$1.8 ~~credit~~billion ~~facilities,~~($3 ~~although~~million ~~there~~for ~~are other conditions to drawing on these credit facilities~~FPL).

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 may be posted in the form of cash or credit support. At March 31, 2013, NEE had posted approximately $80 million (none at FPL) in the form of letters of credit, related to derivatives, in the normal course of business which could be applied toward the collateral requirements described above. 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, 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.

3. Fair Value Measurements

NEE and FPL use several different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or comparable assets and liabilities for those assets and liabilities that are measured at fair value on a recurring basis. NEE's and FPL's assessment of the significance of 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.

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 Instruments - NEE and FPL measure the fair value of commodity contracts using 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

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 significant other observable inputs.

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.

NEE, through NEER, also enters into full requirements contracts, which, in ~~many~~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. This consideration includes, but is not limited to, assumptions about market liquidity, volatility and contract duration as more fully described below in Significant Unobservable Inputs Used in Recurring Fair Value Measurements.

NEE uses interest rate and foreign currency swaps to mitigate and adjust interest rate and foreign currency exposure related to certain outstanding and forecasted debt issuances and borrowings. NEE estimates the fair value of these derivatives using a discounted cash flows valuation technique based on the net amount of estimated future cash inflows and outflows related to the swap agreements.

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:

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)



	March 31, 2013
	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (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)

————————————

~~Recurring~~(a) ~~Fair~~Includes ~~Value~~the ~~Measurements~~effect -of ~~NEE's~~the contractual ability to settle contracts under master netting arrangements and ~~FPL's~~margin ~~financial~~cash ~~assets~~collateral payments and ~~liabilities~~receipts. NEE also has contract settlement receivable and ~~other~~payable ~~fair~~balances ~~value~~that ~~measurements~~are ~~made~~subject onto athe ~~recurring~~master ~~basis~~netting byarrangements ~~fair~~but ~~value~~are ~~hierarchy~~not ~~level~~offset within the condensed consolidated balance sheets and are asrecorded ~~follows:~~in customer receivables - net and accounts payable, respectively.

	September 30, 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	$	22	$	—		$	—	$	—		$	22
FPL - equity securities	$	1	$	—		$	—	$	—		$	1
Special use funds:
NEE:
Equity securities	$	813	$	1,293	(b)	$	—	$	—		$	2,106
U.S. Government and municipal bonds	$	495	$	169		$	—	$	—		$	664
Corporate debt securities	$	—	$	549		$	—	$	—		$	549
Mortgage-backed securities	$	—	$	594		$	—	$	—		$	594
Other debt securities	$	—	$	47		$	—	$	—		$	47
FPL:
Equity securities	$	150	$	1,142	(b)	$	—	$	—		$	1,292
U.S. Government and municipal bonds	$	442	$	132		$	—	$	—		$	574
Corporate debt securities	$	—	$	381		$	—	$	—		$	381
Mortgage-backed securities	$	—	$	513		$	—	$	—		$	513
Other debt securities	$	—	$	35		$	—	$	—		$	35
Other investments:
NEE:
Equity securities	$	12	$	—		$	—	$	—		$	12
U.S. Government and municipal bonds	$	11	$	—		$	—	$	—		$	11
Corporate debt securities	$	—	$	52		$	—	$	—		$	52
Mortgage-backed securities	$	—	$	47		$	—	$	—		$	47
Other	$	5	$	5		$	—	$	—		$	10
Derivatives:
NEE:
Commodity contracts	$	1,407	$	2,605		$	831	$	(3,512	)	$	1,331	(c)
Interest rate swaps	$	—	$	80		$	—	$	—		$	80	(c)
Foreign currency swaps	$	—	$	15		$	—	$	—		$	15	(c)
FPL - commodity contracts	$	—	$	82		$	5	$	(47	)	$	40	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	1,461	$	2,197		$	349	$	(3,392	)	$	615	(c)
Interest rate swaps	$	—	$	391		$	—	$	—		$	391	(c)
Foreign currency swaps	$	—	$	10		$	—	$	—		$	10	(c)
FPL - commodity contracts	$	—	$	114		$	—	$	(47	)	$	67	(c)


(b)	At NEE, approximately $1,350 million ($1,216 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.

(a) Includes the effect of the contractual ability to settle contracts under master netting arrangements and margin cash collateral payments and receipts.

(b) At NEE, approximately $1,217 million ($1,093 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.


(c)	See Note 2 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)

	December 31, 2011
	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	$	~~159~~23	$	—		$	—	$	—		$	~~159~~23
FPL - equity securities	$	115	$	—		$	—	$	—		$	115
Special use funds:
NEE:
Equity securities	$	~~709~~914	$	1,~~206~~240	(b)	$	—	$	—		$	12,~~915~~154
U.S. Government and municipal bonds	$	~~508~~451	$	~~167~~143		$	—	$	—		$	~~675~~594
Corporate debt securities	$	—	$	~~516~~572		$	—	$	—		$	~~516~~572
Mortgage-backed securities	$	—	$	~~511~~560		$	—	$	—		$	~~511~~560
Other debt securities	$	—15	$	4726		$	—	$	—		$	4741
FPL:
Equity securities	$	~~128~~217	$	1,~~056~~118	(b)	$	—	$	—		$	1,~~184~~335
U.S. Government and municipal bonds	$	~~458~~390	$	~~134~~119		$	—	$	—		$	~~592~~509
Corporate debt securities	$	—	$	~~359~~397		$	—	$	—		$	~~359~~397
Mortgage-backed securities	$	—	$	~~434~~475		$	—	$	—		$	~~434~~475
Other debt securities	$	—16	$	3216		$	—	$	—		$	32
Other investments:
NEE:
Equity securities	$	47	$	—		$	—	$	—		$	47
U.S. Government and municipal bonds	$	86	$	—		$	—	$	—		$	86
Corporate debt securities	$	—	$	4353		$	—	$	—		$	4353
Mortgage-backed securities	$	—	$	3347		$	—	$	—		$	3347
Other	$	5	$	56		$	—	$	—		$	1011
Derivatives:
NEE:
Commodity contracts	$	21,~~448~~187	$	32,~~478~~251		$	~~1,071~~794	$	(52,~~477~~871	)	$	1,~~520~~361	(c)
Interest rate swaps	$	—	$	3776		$	—	$	—		$	3776	(c)
Foreign currency swaps	$	—	$	27		$	—	$	—		$	27	(c)
FPL - commodity contracts	$	—	$	14		$	3	$	(12	)	$	5	(c)
FPL - commodity contracts	$	—	$	8		$	6	$	(2	)	$	12	(c)
Liabilities:
Derivatives:
NEE:
Commodity contracts	$	21,~~588~~240	$	31,~~582~~844		$	~~585~~228	$	(52,~~453~~748	)	$	~~1,302~~564	(c)
Interest rate swaps	$	—	$	~~320~~387		$	—	$	—		$	~~320~~387	(c)
Foreign currency swaps	$	—	$	966		$	—	$	—		$	966	(c)
FPL - commodity contracts	$	—	$	~~513~~31		$	21	$	(212	)	$	~~513~~20	(c)

————————————

(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.

(b) At NEE, approximately $1,~~086~~214 million ($~~979~~1,093 million at FPL) are invested in commingled funds whose underlying investments would be Level 1 if those investments were held directly by NEE or FPL.


(c)	See Note 2 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.

All price, volatility, correlation and customer migration inputs used in valuation are subject to validation by the Risk Management group. The Risk Management group performs a risk management function ~~within NEE and FPL~~ 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 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 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 critically 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 and volatility curves used for fair valuing transactions are adequately validated each quarter, and are reviewed and approved by the Vice President of Risk Management. In addition, other valuation assumptions such as implied correlations and customer migration rates are reviewed and approved by the Risk Management group on a periodic basis. Newly created models used in the valuation process are also subject to testing and approval by the Risk Management group prior to use and established models are reviewed annually, or more often as needed, by the 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 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 Risk Management policy. The EMC executes its risk management responsibilities through direct oversight and delegation of its responsibilities to the Vice President of Risk Management, as well as to other corporate and business unit personnel.

The significant unobservable inputs used in the valuation of NEE's contracts categorized as Level 3 of the fair value hierarchy at ~~September~~March 3031, ~~2012~~2013 are as follows:

Transaction Type	Fair Value ~~atSeptember~~atMarch 3031, ~~2012~~2013		ValuationTechnique(s)	SignificantUnobservable Inputs	Range
	Assets	Liabilities
	(millions)
Forward contracts - power	$~~366~~446	$9578	Discounted cash flow	Forward price (per mwh)	$101	–—	$~~141~~179
Options - power	$~~179~~104	$~~200~~117	Option models	Implied correlations	12%	—	98%
				Implied volatilities	1%	—	~~154~~135%
Options - gas	$4333	$1028	Option models	Implied correlations	12%	—	98%
				Implied volatilities	1%	—	5630%
Full requirements and unit contingent contracts	$~~211~~206	$3360	Discounted cash flow	Forward price (per mwh)	$5(2)	—	$~~127~~145
				Customer migration rate(a)	—%	—	20%

——————————


(a)	Applies only to full requirements contracts.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The sensitivity of NEE's fair value measurements to increases (decreases) in the significant unobservable inputs is as follows:



Significant Unobservable Input	Position	Impact on Fair Value Measurement
Forward price	Purchase power	Increase (decrease)
	Sell power	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)

————————————

(a) Assumes the contract is in a gain position.

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,
	Three Months Ended March 31,
	2012						2011
	2013						2012
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at June 30	$	575		$	7		$	155		$	5
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)	(~~149~~3		)	—			~~(11~~231		)	—
Included in regulatory assets and liabilities	1			1			—4			—4
Purchases	4049			—			45158			—
Settlements	30(33		)	(31		)	3(124		)	(1		)
Issuances	(2164		)	—			(70177		)	—
Transfers in(b)	5—			—			116			—
Transfers out(b)	16			—			(25		)	—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	482		$	5		$	121		$	4
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)	$	~~(171~~32	)	$	—		$	12221		$	—

————————————

(a) For the three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012, less than $(~~149~~1) million and $~~(12)~~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 interchange.

(b) ~~For~~Transfers ~~the three months ended September 30, 2012 and 2011, 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 ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012, $~~(170)~~31 million and $12219 million, respectively, of 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 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)

	Nine Months Ended September 30,
	2012						2011
	NEE			FPL			NEE			FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year	$	486		$	4		$	296		$	7
Realized and unrealized gains (losses):
Included in earnings(a)	135			—			2			—
Included in regulatory assets and liabilities	7			7			2			2
Purchases	221			—			186			—
Settlements	(152		)	(6		)	(100		)	(5		)
Issuances	(221		)	—			(260		)	—
Transfers in(b)	21			—			3			—
Transfers out(b)	(15		)	—			(8		)	—
Fair value of net derivatives based on significant unobservable inputs at September 30	$	482		$	5		$	121		$	4
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)	$	41		$	—		$	42		$	—

The estimate of the fair value was 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 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), including forecasts of generation, estimates of tariff escalation rates and estimated costs of debt and equity capital, were also used in the estimation 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 result in a decreased fair market value.

~~(a)~~See ~~For~~Note ~~the~~6 ~~nine~~for ~~months~~a ~~ended~~discussion ~~September 30, 2012 and 2011, $132 million and $(11) million, respectively,~~ of ~~realized and unrealized gains (losses) are reflected in~~ the ~~condensed~~nonrecurring ~~consolidated~~fair ~~statements~~value measurement of ~~income~~certain indiscontinued ~~operating revenues and the balance is reflected in fuel, purchased power and interchange~~operations.

(b) For the nine months ended September 30, 2012 and 2011, 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 nine months ended September 30, 2012 and 2011, $41 million and $37 million, respectively, of 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 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 second quarter of 2011, market value indications and the potential impact of proposed environmental regulations suggested that the carrying value of certain NEER assets, primarily wind assets in West Texas and oil-fired assets in Maine, could be impaired. NEER performed a fair value analysis and concluded that an impairment charge related to the long-lived assets, primarily property, plant and equipment, was necessary. The fair value analysis was primarily based on the income approach using significant unobservable inputs (Level 3) including revenue and generation forecasts, projected capital and maintenance expenditures and discount rates. As a result, long-lived assets held and used with a carrying amount of approximately $79 million were written down to their fair value of $28 million, resulting in an impairment charge of $51 million ($31 million after-tax), which is recorded as a separate line item in NEE’s condensed consolidated statements of income for the nine months ended September 30, 2011.

In the third quarter of 2011, a subsidiary of NEER entered into an agreement to sell its ownership interest in four natural gas-fired generating plants with a total generating capacity of 2,152 mw. In connection with the agreement to sell, during the three and nine months ended September 30, 2011, a loss of approximately $148 million ($97 million after-tax) was recorded in NEE's condensed consolidated statements of income consisting of the impact of writing down the net natural gas-fired generating assets held for sale to their estimated fair value less costs to sell and the reclassification of $30 million from AOCI as a result of the discontinuance of certain cash flow hedges because it became no longer probable that the future hedged transactions would occur. See Note 2. The sale of the four natural gas-fired plants discussed above and the sale of one additional natural gas-fired plant were completed in the fourth quarter of 2011.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

4. Financial Instruments

The carrying amounts of cash equivalents, short-term debt and commercial paper approximate their fair values. At ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, other investments of NEE, not included in the table below, included financial instruments of approximately $4137 million and $3541 million ($84 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 value.

The following estimates of the fair value of financial instruments have been made primarily using ~~available~~the market approach of using prices and other market information for identical and/or comparable assets and liabilities. However, the use of different market assumptions or methods of valuation could result in different estimated fair values.

	September 30, 2012								December 31, 2011
	March 31, 2013								December 31, 2012
	CarryingAmount				EstimatedFair Value				CarryingAmount				EstimatedFair Value
	(millions)
NEE:
Special use funds	$	4,~~223~~413		(a)	$	4,~~223~~413		(a)	$	34,~~867~~190		(a)	$	34,~~867~~190		(a)
Other investments:
Notes receivable	$	500			$	~~681~~675		(b)	$	~~503~~500			$	~~535~~665		(b)
Debt securities	$	~~115~~117		(c)	$	~~115~~117		(d)	$	89111		(c)	$	89111		(d)
Equity securities	$	6145			$	7545		(e)	$	8061			$	~~159~~79		(e)
Long-term debt, including current maturities	$	2425,~~769~~543			$	27,~~674~~706		(f)	$	2126,~~614~~647		(g)	$	2328,~~699~~874		(f)
Interest rate swaps - net unrealized losses	$	(~~311~~211	)		$	(~~311~~211	)	(d)	$	(~~283~~311	)		$	(~~283~~311	)	(d)
Foreign currency swaps - net unrealized gains	$	5			$	5		(d)	$	18			$	18		(d)
Foreign currency swaps - net unrealized losses	$	(103	)		$	(103	)	(d)	$	(66	)		$	(66	)	(d)
FPL:
Special use funds	$	23,~~967~~064		(a)	$	23,~~967~~064		(a)	$	2,~~737~~918		(a)	$	2,~~737~~918		(a)
Long-term debt, including current maturities	$	8,~~084~~355			$	9,~~984~~810		(f)	$	78,~~533~~782			$	910,~~078~~421		(f)

————————————

(a) At ~~September~~March 3031, ~~2012~~2013, includes $~~229~~241 million of investments accounted for under the equity method and $3439 million of loans not measured at fair value on a recurring basis ($~~144~~149 million and $2832 million, respectively, for FPL). At December 31, ~~2011~~2012, includes $~~164~~229 million of investments accounted for under the equity method and $3940 million of loans not measured at fair value on a recurring basis ($~~112~~138 million and $2432 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,~~753~~725 million and $1,~~437~~500 million, respectively, at ~~September~~March 3031, ~~2012~~2013 and $1,~~638~~679 million and $1,~~425~~500 million, respectively, at December 31, ~~2011~~2012 ($1,~~417~~368 million and $~~791~~839 million, respectively, at ~~September~~March 3031, ~~2012~~2013 and $1,~~321~~339 million and $~~864~~839 million, respectively, at December 31, ~~2011~~2012 for FPL).

(b) Classified as held to maturity. Estimated using a discounted cash flow valuation technique based on certain observable yield curves and indices considering the credit profile of the borrower (Level 3). Notes receivable bear interest ~~primarily~~ at fixed rates and mature by 2029. Notes receivable are considered impaired and placed in non-accrual status when it becomes probable that all amounts due cannot be collected in accordance with the contractual terms of the agreement. The assessment to place notes receivable in non-accrual status considers various credit indicators, such as credit ~~standings and~~ ratings and market-related information. As of ~~September~~March 3031, ~~2012~~2013, NEE had no notes receivable reported in non-accrual status.


(c)	Classified as trading securities.


(d)	See Note 3.


(e)	Primarily modeled internally based on recent market information including, among other things, private offerings of the securities (Level 3).

(f) As of ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012, $1518,~~873~~535 million and $1518,~~035~~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).

~~Special~~(g) ~~Use~~Also ~~Funds~~includes long-term ~~The~~debt ~~special~~reflected ~~use~~in ~~funds~~liabilities ~~consist~~associated ofwith ~~FPL's storm fund~~ assets ~~of $127 million and NEE's and FPL's nuclear decommissioning fund assets of $4,096 million and $2,840 million, respectively, at September 30, 2012. The investments~~ held ~~in the special use funds consist of equity and debt securities which are primarily classified as available~~ for sale ~~and~~on 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~~condensed ~~regulatory~~consolidated ~~liability~~balance ~~accounts. For NEE's non-rate regulated operations~~sheets, ~~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~~carrying ~~decommissioning~~amount ~~funds~~approximates ~~have~~fair ~~a weighted-average maturity at September 30, 2012 of approximately six years at both NEE and FPL~~value. FPL's storm fund primarily consists of debt securities with a weighted-average maturity at September 30, 2012 of approximately three years. The cost of securities sold is determined using the specific identification method.

24 23

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.

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

	NEE				FPL				~~NEE~~				~~FPL~~
	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,				Three Months Ended March 31,
	2012		2011		2012		2011		2012		2011		2012		2011
	2013		2012		2013		2012
	(millions)
Realized gains	$	7542	$	6943	$	2023	$	2231	$	~~206~~	$	~~156~~	$	81	$	60
Realized losses	$	1630	$	2712	$	1222	$	1711	$	48	$	70	$	34	$	51
Proceeds from sale or maturity of securities	$	~~953~~924	$	~~992~~936	$	~~592~~685	$	~~675~~727	$	~~3,890~~	$	~~3,567~~	$	~~2,949~~	$	~~2,483~~

Unrealized losses on available for sale debt securities at ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012 were not material to NEE or FPL. The unrealized gains on available for sale securities are as follows:

	NEE				FPL
	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
	(millions)
Equity securities	$	~~694~~873	$	~~546~~680	$	~~526~~652	$	~~376~~521
U.S. Government and municipal bonds	$	32	$	46	$	29	$	43
Debt securities	$	78	$	92	$	67	$	77
Corporate debt securities	$	43	$	31	$	32	$	24
Mortgage-backed securities	$	25	$	27	$	22	$	24
Other debt securities	$	2	$	3	$	2	$	3

Regulations issued by the Federal Energy Regulatory Commission (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 NEER's Seabrook Station (Seabrook), decommissioning fund contributions and withdrawals are also regulated by the 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.

Interest Rate and Foreign Currency Swaps - NEE and its subsidiaries use a combination of fixed rate and variable rate debt to manage interest rate exposure. Interest rate swaps are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

5. Income Taxes

NEE's effective income tax rates for the three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012 were approximately 2767% and 2825%, respectively. The ~~reduction~~increase ~~from~~in the ~~federal statutory~~ rate for ~~those~~the ~~respective~~three ~~periods~~months ~~mainly~~ended ~~reflects~~March 31, 2013 is primarily due to the ~~benefit~~establishment of ~~wind~~a ~~production~~full valuation allowance of approximately $132 million on the deferred tax ~~credits~~assets ~~(PTCs)~~associated with the Spain solar projects. This valuation allowance primarily related to deferred tax assets created as a result of ~~approximately~~the $35300 million impairment and other related charges ($45342 million ~~related~~after-tax) torecorded ~~NEER's~~for ~~wind~~the ~~projects~~three ~~and~~months ended March 31, 2013. In addition, the rates for both periods reflect the effect of production tax credits (PTCs) of approximately $1459 million and $961 million offor 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.

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).

6. Discontinued Operations

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.

In March 2013, NEER initiated a plan and received internal authorization to pursue the sale of its ownership interests in oil-fired generating plants located in Maine (Maine fossil) with a total generating capacity of 796 mw. In connection with the decision to sell Maine fossil, a loss of approximately $67 million ($43 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 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 approach based primarily on capacity revenue forecasts. The carrying amount of the assets and liabilities and the operations, exclusive of the loss, of Maine 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.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~NEE's effective income tax rates for the nine months ended September 30, 2012 and 2011 were approximately 27% and 18%, respectively~~7. ~~The~~Variable ~~reduction~~Interest ~~from~~Entities the federal statutory rate for those respective periods mainly reflects the benefit of wind PTCs of approximately $147 million and $208 million and approximately $37 million and $17 million of deferred income tax benefits associated with convertible ITCs. NEE's effective income tax rate for the nine months ended September 30, 2011 also reflects a state deferred income tax benefit included in the Corporate and Other segment of approximately $64 million, net of federal income taxes, related to state tax law changes in 2011 (~~state deferred income tax benefit~~VIEs) and a $26 million reduction in income tax expense, net of federal income taxes, primarily related to a valuation allowance reversal for certain state ITCs reflecting state income tax planning initiatives (state ITC benefit).

~~NEE~~As ~~recognizes~~of ~~PTCs as wind energy is generated and sold based on a per kilowatt-hour (kwh) rate prescribed in applicable federal and state statutes~~March 31, ~~which may differ significantly from amounts computed~~2013, ~~on a quarterly basis, using an overall effective income tax rate anticipated for the full year.~~ NEE ~~uses~~has ~~this~~eleven ~~method~~VIEs ofwhich ~~recognizing~~it ~~PTCs~~consolidates ~~for specific reasons, including that PTCs are an integral part of the financial viability of most wind projects~~ and ahas ~~fundamental~~interests ~~component~~in ofcertain ~~such~~other ~~wind~~VIEs ~~projects'~~which ~~results~~it ofdoes ~~operations. PTCs,~~not ~~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~~consolidate. ~~The amount of PTCs recognized can be significantly affected by wind generation and by the expiration of PTCs after ten years of production.~~

6FPL - 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. ~~Variable~~FPL ~~Interest~~is ~~Entities~~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 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 (~~VIEs~~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 $332 million and $366 million at March 31, 2013 and December 31, 2012, respectively, and consisted primarily of storm-recovery property, which are included in securitized storm-recovery costs on NEE's and FPL's condensed consolidated balance sheets. The liabilities of the VIE were approximately $414 million and $447 million at March 31, 2013 and December 31, 2012, respectively, and consisted primarily of storm-recovery bonds, which are included in long-term debt on NEE's and FPL's condensed consolidated balance sheets.

AsFPL identified a potential VIE, which is considered a qualifying facility as defined by the Public Utility Regulatory Policies Act of ~~September 30~~1978, ~~2012~~as amended (PURPA). PURPA requires utilities, ~~NEE~~such ~~has~~as ~~ten~~FPL, ~~VIEs~~to ~~which~~purchase itthe ~~consolidates~~electricity output of a qualifying facility. FPL entered into a purchased power agreement effective in 1994 with this 250 mw coal-fired qualifying facility to purchase substantially all of the facility's capacity and ~~has~~electrical ~~interests~~output over a substantial portion of its estimated useful life. FPL absorbs a portion of the facility's variability related to changes in ~~certain~~the ~~other~~market ~~VIEs~~price ~~which~~of coal through the price it pays per mwh (energy payment). After making exhaustive efforts, FPL was unable to obtain the information from the facility necessary to determine whether the facility is a VIE or whether FPL is the primary beneficiary of the facility. The purchased power agreement 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 prices change. This fluctuation does not ~~consolidate~~expose FPL to losses since the energy payments paid by FPL to the facility are passed on to FPL's customers through the fuel clause as approved by the FPSC. Notwithstanding the fact that FPL's energy payments are recovered through the fuel clause, if the facility was determined to be a VIE, the absorption of some of the facility's fuel price variability might cause FPL to be considered the primary beneficiary. During the three months ended March 31, 2013 and 2012, FPL purchased 79,210 mwh and 98,941 mwh, respectively, from the facility at a total cost of approximately $35 million and $40 million, respectively.

~~FPL~~Additionally, - FPL isentered ~~considered~~into ~~the primary beneficiary of, and therefore consolidates,~~ a ~~VIE~~purchased ~~that~~power isagreement aeffective ~~wholly-owned bankruptcy remote special purpose subsidiary that it formed~~ in ~~2007~~1995 ~~for~~with ~~the~~a ~~sole~~330 ~~purpose~~mw ~~of issuing storm~~coal-~~recovery~~fired ~~bonds~~qualifying ~~pursuant~~facility to ~~the~~purchase ~~securitization~~substantially ~~provisions~~all of the ~~Florida~~facility's ~~Statutes~~electrical ~~and~~output over a ~~financing~~substantial ~~order~~portion of ~~the~~its ~~FPSC~~estimated useful life. ~~FPL~~The facility is considered ~~the~~a ~~primary~~VIE ~~beneficiary~~ because FPL ~~has~~absorbs ~~the~~a ~~power~~portion ~~to direct the significant activities~~ of the ~~VIE,~~facility’s ~~and~~variability ~~its~~related ~~equity investment, which is subordinate~~ to ~~the~~changes ~~bondholder's interest~~ in the ~~VIE,~~market isprice atof ~~risk. Storm~~coal ~~restoration~~through ~~costs incurred by FPL during 2005 and 2004 exceeded~~ the ~~amount~~energy ~~in FPL's funded storm and property insurance reserve, resulting in a storm reserve deficiency~~payment. InSince ~~2007,~~FPL ~~the~~does ~~VIE~~not ~~issued~~control ~~$652 million aggregate principal amount of senior secured bonds (storm-recovery bonds), primarily for~~ the ~~after-tax~~most ~~equivalent~~significant ofactivities ~~the total~~ of ~~FPL's unrecovered balance of~~ the ~~2004 storm restoration costs~~facility, ~~the~~including ~~2005~~operations ~~storm restoration costs~~ and ~~to reestablish FPL's storm and property insurance reserve. In connection with this financing~~maintenance, 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~~is ~~rate~~not ~~schedules approved by~~ the ~~FPSC~~primary orbeneficiary ~~under special contracts, certain other rights~~ and ~~interests~~does ~~that~~not ~~arise~~consolidate ~~under~~this ~~the financing order issued by the FPSC and certain other collateral pledged by the~~ VIE ~~that issued the bonds~~. The ~~storm-recovery~~energy ~~bonds~~payments ~~are~~paid ~~payable~~by ~~only~~FPL ~~from~~will ~~and~~fluctuate ~~are~~as ~~secured~~coal byprices ~~the storm-recovery property~~change. ~~The~~This ~~bondholders~~fluctuation ~~have~~does nonot ~~recourse~~expose ~~to the general credit of~~ FPL~~. The~~ ~~assets~~to oflosses since the ~~VIE~~energy ~~were~~payments ~~approximately~~paid ~~$356~~by ~~million~~FPL ~~and~~to ~~$406~~the ~~million~~facility ~~at September 30, 2012 and December 31, 2011, respectively, and consisted primarily of storm-recovery property, which~~ are ~~included~~passed ~~in securitized storm-recovery costs~~ on ~~NEE's~~to ~~and~~ FPL'’s ~~condensed~~customers ~~consolidated~~through ~~balance sheets. The liabilities of~~ the ~~VIE~~fuel ~~were~~clause ~~approximately~~as ~~$441~~approved ~~million~~by ~~and~~the $496 million at September 30, 2012 and December 31, 2011, respectively, and consisted primarily of storm-recovery bonds, which are included in long-term debt on NEE's and FPL's condensed consolidated balance sheetsFPSC.

~~FPL~~NEER identified a potential VIE, which is considered a qualifying facility as defined by the Public Utility Regulatory Policies Act of 1978, as amended (PURPA). PURPA requires utilities, such as FPL, to purchase the electricity output of a qualifying facility. FPL entered into a purchased power agreement (PPA) effective in 1994 with this 250 megawatt (mw) coal-~~fired~~ ~~qualifying~~NEE ~~facility~~consolidates toten ~~purchase~~NEER ~~substantially all of the facility's capacity and electrical output over a substantial portion of its estimated useful life~~VIEs. ~~FPL~~NEER absorbs a portion of the facility's variability related to changes in the market price of coal through the price it pays per mwh (energy payment). After making exhaustive efforts, FPL was unable to obtain the information from the facility necessary to determine whether the facility is aconsidered ~~VIE or whether FPL is~~ the primary beneficiary of ~~the~~these ~~facility. The~~VIEs PPA 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 prices change. This fluctuation does not expose FPL to losses since ~~the~~NEER ~~energy~~controls ~~payments paid by FPL to~~ the ~~facility~~most ~~are~~significant ~~passed~~activities on to FPL's customers through the fuel clause as approved by the FPSC. Notwithstanding the fact that FPL's energy payments are recovered through the fuel clause, if the facility was determined to be a VIE, the absorption of ~~some~~these ~~of the facility's fuel price variability might cause FPL to be considered the primary beneficiary. During the three months ended September 30~~VIEs, ~~2012~~including ~~and~~operations ~~2011, FPL purchased 293,650 mwh~~ and ~~327~~maintenance,~~583~~ ~~mwh, respectively, from the facility at a total cost of approximately $48 million~~ and ~~$50~~through ~~million,~~its ~~respectively. During~~100% ~~the~~equity ~~nine~~ownership ~~months~~has ~~ended September 30, 2012 and 2011, FPL purchased 582,661 mwh and 965,105 mwh, respectively, from~~ the ~~facility~~obligation atto aabsorb ~~total~~expected ~~cost~~losses of ~~approximately~~these ~~$133 million and $144 million, respectively~~VIEs.

An NEER VIE consolidates two entities which own and operate natural gas/oil electric generating facilities with the capability of producing 110 mw. This VIE sells its 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. This VIE uses third party debt and equity to finance its operations. 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 the VIE were approximately $94 million and $72 million, respectively, at March 31, 2013 and $90 million and $70 million, respectively, at December 31, 2012, and consisted primarily of property, plant and equipment and long-term debt.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~Additionally,~~The ~~FPL~~other ~~entered~~nine ~~into~~NEER aVIEs ~~PPA~~consolidate ~~effective~~several inentities ~~1995~~which own and operate wind electric generating facilities with the capability of producing a ~~330~~total of 3,058 mw. Eight ~~coal-fired~~of ~~qualifying~~these ~~facility~~VIEs sell their electric output under power sales contracts to ~~purchase~~third ~~substantially~~parties ~~all~~with ofexpiration ~~the~~dates ~~facility's~~ranging ~~electrical~~from ~~output~~2018 ~~over~~through a2037; ~~substantial~~the ~~portion~~ninth ofVIE sells its ~~estimated~~electric ~~useful~~output ~~life~~in the spot market. The ~~facility~~VIEs isuse ~~considered~~third-party adebt ~~VIE~~and/or ~~because~~equity ~~FPL~~to ~~absorbs~~finance atheir ~~portion~~operations. Certain ofinvestors ~~the~~that ~~facility’s~~hold ~~variability~~no ~~related~~equity tointerest ~~changes~~ in the ~~market~~VIEs ~~price~~hold ofdifferential ~~coal~~membership ~~through~~interests, which give them the ~~energy~~right ~~payment. Since~~to ~~FPL~~receive ~~does~~a ~~not~~portion ~~control~~of the ~~most~~economic ~~significant~~attributes ~~activities~~ of the ~~facility~~generating facilities, including ~~operations~~certain ~~and~~tax ~~maintenance,~~attributes. The ~~FPL~~debt is ~~not~~secured by liens against the ~~primary~~generating ~~beneficiary~~facilities and ~~does~~the ~~not~~other ~~consolidate~~assets ~~this~~of ~~VIE~~these entities. The ~~energy~~debt ~~payments~~holders ~~paid~~have byno ~~FPL~~recourse ~~will~~to ~~fluctuate~~the asgeneral ~~coal~~credit ~~prices~~of ~~change~~NEER. ~~This~~The ~~fluctuation~~assets ~~does~~and ~~not~~liabilities ~~expose~~of ~~FPL~~these toVIEs ~~losses~~totaled ~~since~~approximately ~~the~~$4.6 ~~energy~~billion ~~payments~~and ~~paid~~$3.1 bybillion, ~~FPL~~respectively, toat ~~the~~March 31, ~~facility~~2013 ~~are~~and ~~passed~~$4.6 onbillion toand ~~FPL’s~~$3.2 ~~customers~~billion, ~~through~~respectively, ~~the~~at ~~fuel~~December 31, ~~clause~~2012. At asMarch 31, ~~approved~~2013 byand December 31, 2012, the ~~FPSC~~assets and liabilities of the VIEs consisted primarily of property, plant and equipment, deferral related to differential membership interests and long-term debt.

~~NEER~~Other - As of March 31, 2013 and December 31, 2012, several NEE ~~consolidates~~subsidiaries ~~nine~~have ~~NEER~~investments ~~VIEs~~totaling approximately $711 million ($545 million at FPL) and $753 million ($583 million at FPL), respectively, in certain special purpose entities, which consisted primarily of investments in mortgage-backed securities. ~~NEER~~These isinvestments ~~considered~~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 ~~VIEs~~entities ~~since~~because ~~NEER~~they ~~controls~~do ~~the~~not ~~most~~control ~~significant~~any of the ongoing activities of these ~~VIEs~~entities, ~~including~~were ~~operations~~not ~~and~~involved ~~maintenance,~~in ~~and~~the ~~through~~initial ~~its~~design ~~100%~~of ~~equity~~these ~~ownership~~entities ~~has~~and ~~the~~do ~~obligation~~not tohave ~~absorb~~a ~~expected~~controlling ~~losses~~financial ofinterest in these ~~VIEs~~entities.

~~An NEER VIE consolidates two entities which own and operate natural gas/oil electric generating facilities with the capability of producing 110 mw~~8. ~~This~~Common ~~VIE~~Shareholders' sells its 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. This VIE uses third party debt and equity to finance its operations. 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 the VIE were approximately $96 million and $74 million, respectively, at September 30, 2012 and $105 million and $82 million, respectively, at December 31, 2011, and consisted primarily of property, plant and equipment and long-term debt.Equity

~~The~~Earnings ~~other~~Per ~~eight~~Share ~~NEER~~- ~~VIEs~~The ~~consolidate~~reconciliation ~~several~~of ~~entities~~NEE's ~~which~~basic ~~own~~ and ~~operate~~diluted ~~wind~~earnings ~~electric~~per ~~generating~~share ~~facilities with the capability~~ of ~~producing~~common astock ~~total of 2,658 mw. Seven of these VIEs sell their electric output under power sales contracts to third parties with expiration dates ranging~~ from ~~2018~~continuing ~~through 2037; the eighth 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~~as 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 $4.1 billion and $2.8 billion, respectively, at September 30, 2012. Six of the eight were VIEs at December 31, 2011 and were consolidated; the assets and liabilities of those VIEs totaled approximately $3.2 billion and $2.6 billion, respectively, at December 31, 2011. At September 30, 2012 and December 31, 2011, the assets and liabilities of the VIEs consisted primarily of property, plant and equipment, deferral related to differential membership interests and long-term debt.follows:

Other - As of September 30, 2012 and December 31, 2011, several NEE subsidiaries have investments totaling approximately $784 million ($619 million at FPL) and $668 million ($526 million at FPL), respectively, in certain special purpose entities, which consisted primarily 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 September 30, 2012, 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.



	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)	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. Performance share awards, options, equity units and restricted stock are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method.

Common shares issuable pursuant to stock options, performance shares and restricted stock awards which were not included in the denominator above due to their antidilutive effect were approximately 0.4 million and 0.6 million for the three months ended March 31, 2013 and 2012, 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)

79. ~~Common Stock~~Debt

~~Earnings~~Significant ~~Per~~long-term ~~Share~~debt -issuances ~~The~~and ~~reconciliation~~borrowings by subsidiaries of NEE's ~~basic~~during ~~and~~the ~~diluted~~three ~~earnings~~months ~~per~~ended ~~share~~March of31, ~~common~~2013 ~~stock~~were is as follows:

	Three Months Ended September 30,							Nine Months Ended September 30,
Date Issued		Company	Debt Issuances/Borrowings		InterestRate			PrincipalAmount		MaturityDate
	2012			2011				2012		2011
								(millions)
	(millions, except per share amounts)
January - March 2013		NEECH and NEER subsidiary	Canadian revolving credit agreements		Variable		(a)	$	75	Various
Numerator - net income	$	415		$	407			$	1,482	$	1,256
January - March 2013		NEER subsidiaries	Euro denominated senior secured limited-recourse loan		Variable		(a)(b)	$	15	2030	(c)
Denominator:
January - March 2013		NEECH and NEER subsidiary	Euro denominated revolving loan		Variable		(a)	$	5	2014
Weighted-average number of common shares outstanding - basic	419.3			417.4				415.6		416.7
January - March 2013		Lone Star Transmission, LLC	Senior secured limited-recourse loan		Variable		(a)	$	77	2016
Performance share awards, options, restricted stock and equity units(a)	2.4			2.4				2.4		2.4
January 2013		NEECH	Junior subordinated debentures		5.00	%		$	450	2073
Weighted-average number of common shares outstanding - assuming dilution	421.7			419.8				418.0		419.1
Earnings per share of common stock:
Basic	$	0.99		$	0.98			$	3.57	$	3.01
Assuming dilution	$	0.98		$	0.97			$	3.55	$	3.00

————————————

(a) 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. Performance share awards, options, restricted stock and equity units are included in diluted weighted-average number of common shares outstanding by applying the treasury stock method.

Common shares issuable pursuant to equity units and stock options, performance shares and restricted stock awards which were not included in the denominator above due to their antidilutive effect were approximately 3.2 million and 14.6 million for the three months ended September 30, 2012 and 2011, respectively, and 9.9 million and 14.5 million for the nine months ended September 30, 2012 and 2011, respectively.

8. Debt

Long-term debt issuances and borrowings by subsidiaries of NEE during the nine months ended September 30, 2012 were as follows:

Date Issued	Company	Debt Issuances/Borrowings	InterestRate			PrincipalAmount		MaturityDate
						(millions)
January - September 2012	NEECH and NEER subsidiary	Canadian revolving credit facilities	Variable		(a)	$	146	2013
January - September 2012	NEER subsidiaries	Euro denominated senior secured limited-recourse loan	Variable		(a)(b)	$	247	2030
January - September 2012	NEER subsidiaries	Euro denominated senior secured limited-recourse loan	Variable		(a)	$	48	2015
January - September 2012	NEECH and NEER subsidiary	Euro denominated revolving loan	Variable		(a)	$	81	2014
January - August 2012	Lone Star Transmission, LLC	Senior secured limited-recourse loan	Variable		(a)	$	150	2016
March 2012	NEECH	Junior subordinated debentures	5.70	%		$	400	2072
May 2012	NEECH	Debentures related to NEE's equity units	1.70	%		$	600	2017
May 2012	FPL	First mortgage bonds	4.05	%		$	600	2042
June 2012	NEECH	Junior subordinated debentures	5.625	%		$	350	2072
July 2012	NEER subsidiary	Limited-recourse term loan	Variable		(a)(b)	$	99	2015
September 2012	NEECH	Debentures related to NEE's equity units	1.60	%		$	650	2017
September 2012	NEECH	Debentures	1.20	%		$	500	2015
September 2012	NEER subsidiary	Canadian senior secured limited-recourse notes	4.881	%		$	176	2031
September 2012	NEER subsidiary	Senior secured limited-recourse loan	Variable		(a)(b)	$	232	2030


(a)	Variable rate is based on an underlying index plus a margin.

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


(c)	See Note 10 - Commitments for discussion of a default on the senior secured limited-recourse loan.

10. Commitments and Contingencies

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).

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

InAt May 2012, NEE sold $600 million of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 5% undivided beneficial ownership interest in a Series E Debenture due JuneMarch 131, ~~2017 issued in the principal amount of $1~~2013,~~000~~ byestimated ~~NEECH~~capital ~~(see~~expenditures ~~table~~for ~~above). Each stock purchase contract requires~~ the ~~holder~~remainder ~~to purchase by no later than June 1, 2015 (the final settlement date) for a price~~ of ~~$50~~2013 inthrough ~~cash,~~2017 awere ~~number of shares of NEE common stock (subject to antidilution adjustments) based on a price per share range of $64.35 to $77.22. If purchased on the final settlement date,~~ as of September 30, 2012, the number of shares issued would (subject to antidilution adjustments) range from 0.7770 shares if the applicable market value of a share of common stock is less than or equal to $64.35, to 0.6475 shares if the applicable market value of a share is equal to or greater than $77.22, with applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending May 27, 2015. Total annual distributions on the equity units will be at the rate of 5.599%, consisting of interest on the debentures (1.70% per year) and payments under the stock purchase contracts (3.899% per year). The interest rate on the debentures is expected to be reset on or after December 1, 2014. The holder of an equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in the NEECH debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder’s obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.follows:

Also, in May 2012, a remarketing of $350 million aggregate principal amount of Series C Debentures due June 1, 2014 (Debentures) issued by NEECH was successfully completed. The Debentures were originally issued in May 2009 as components of NEE's equity units (2009 equity units). The Debentures are fully and unconditionally guaranteed by NEE. In connection with the remarketing of the Debentures, the annual interest rate on the Debentures was reset to 1.611% and interest is payable semi-annually on June 1 and December 1, beginning June 1, 2012. In connection with the settlement of the contracts to purchase NEE common stock that were issued as components of the 2009 equity units, on June 1, 2012, NEE issued 5,400,500 shares of common stock in exchange for $350 million.



	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

————————————

~~In September 2012, NEE sold $650 million of equity units~~ (~~initially consisting of Corporate Units). Each equity unit has~~ a ~~stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract~~) ~~and,~~Includes ~~initially,~~allowance a 5% undivided beneficial ownership interest in a Series F Debenture due September 1, 2017 issued in the principal amount of $1,000 by NEECH (see table above). Each stock purchase contract requires the holder to purchase by no later than September 1, 2015 (the final settlement date) for afunds ~~price~~used ofduring ~~$50~~construction ~~in cash, a number of shares of NEE common stock~~ (~~subject to antidilution adjustments~~AFUDC) ~~based on a price per share range~~ of ~~$67.15~~approximately to $~~80.58. If~~56 ~~purchased on the final settlement date~~million, as$55 ~~of September 30~~million, ~~2012, the number of shares issued would (subject to antidilution adjustments) range from 0.7446 shares if the applicable market value of a share of common stock is less than or equal to~~ $~~67.15,~~46 tomillion ~~0.6205~~and ~~shares if the applicable market value of a share is equal to or greater than~~ $~~80.58,~~26 ~~with~~million applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending August 27, 2015. Total annual distributions on the equity units will be at the rate of 5.889%, consisting of interest on the debentures (1.60% per year) and payments under the stock purchase contracts (4.289% per year). The interest rate on the debentures is expected to be reset on or after March 1, 2015. The holder of an equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interest in ~~the~~2013 ~~NEECH~~through debenture that is a component of each Corporate Unit is pledged to NEE to secure the holder’s obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date2016, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement daterespectively. ~~The debentures are fully and unconditionally guaranteed by NEE.~~

9. Commitments and Contingencies

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 primarily include the cost for construction of a transmission line and other associated facilities by Lone Star Transmission, LLC (Lone Star), a rate-regulated transmission service provider in Texas, and the cost to meet customer-specific requirements and maintain the fiber-optic network for the fiber-optic telecommunications business (FPL FiberNet).

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

At September 30, 2012, estimated capital expenditures for the remainder of 2012 through 2016 were as follows:

	Remainder of 2012		2013		2014		2015		2016		Total
	(millions)
FPL:
Generation:(a)
New(b)(c)	$	500	$	770	$	770	$	295	$	120	$	2,455
Existing	190		645		655		550		440		2,480
Transmission and distribution	215		690		690		660		705		2,960
Nuclear fuel	70		125		205		245		245		890
General and other	45		190		120		80		85		520
Total	$	1,020	$	2,420	$	2,440	$	1,830	$	1,595	$	9,305
NEER:
Wind(d)	$	740	$	285	$	25	$	5	$	5	$	1,060
Solar(e)	390		670		160		5		—		1,225
Nuclear(f)	95		315		280		285		325		1,300
Other(g)	85		200		120		135		60		600
Total	$	1,310	$	1,470	$	585	$	430	$	390	$	4,185
Corporate and Other(h)	$	115	$	115	$	45	$	45	$	45	$	365

(a) Includes allowance for funds used during construction (AFUDC) of approximately $24 million, $82 million, $53 million, $48 million and $27 million in 2012 to 2016, respectively.


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

(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 $2427 million, ~~$42 million~~ and $1217 million in ~~2012~~2013 toand 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.

(d) ~~Consists~~FPL ofhas ~~capital~~identified ~~expenditures~~$3 ~~for~~billion ~~planned~~to ~~new~~$4 ~~wind~~billion ~~projects~~in ~~and~~potential ~~related~~incremental ~~transmission~~capital ~~totaling~~expenditures ~~approximately~~through ~~1,500~~2016 ~~mw, including approximately 150 mw~~ in ~~Canada,~~addition ~~that~~to ~~have~~what ~~received~~is ~~applicable~~included ~~internal approvals. Excludes new Canadian wind projects requiring internal approvals with generation totaling approximately 470 mw~~ in ~~2014~~the ~~and~~table ~~2015, with an estimated cost of approximately $1~~above.~~3 billion to $1.5 billion.~~

(e) Consists of capital expenditures for ~~planned~~ new ~~solar~~wind projects and related transmission totaling ~~625~~approximately 300 mw, including approximately 125 mw in Canada, that have received applicable internal approvals,. ~~including~~Excludes ~~equity~~new ~~contributions~~Canadian ~~associated~~wind projects requiring internal approvals with ageneration ~~50%~~totaling ~~equity~~approximately ~~method~~470 ~~investment~~mw in a2014 ~~550~~and mw2015, ~~solar~~with ~~project~~an estimated total cost of approximately $1.3 ~~Excludes~~billion ~~solar~~to ~~projects~~$1.7 ~~requiring~~billion. ~~internal~~NEER ~~approvals~~expects ~~with~~to ~~generation~~add ~~totaling~~500 ~~270~~to 1,500 mw ~~with~~of annew ~~estimated~~U.S. wind generation through 2014 at a total cost of approximately $~~600~~1 ~~million~~billion to $~~800~~3 ~~million~~billion.

(f) ~~Includes~~Consists ~~nuclear~~of ~~fuel~~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 $800 million. Additionally, NEER expects to add up to 300 mw of incremental solar generation at a cost of up to $1 billion through 2016.

(g) ~~Consists~~Includes ofnuclear ~~capital expenditures that have received applicable internal approvals~~fuel.

(h) Consists of capital expenditures that have received applicable internal approvals ~~and includes AFUDC of approximately $9 million and $14 million in 2012 and 2013, respectively~~.

These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

~~Contracts~~On -March In28, ~~addition~~2013, toan ~~the~~event ~~estimated~~of ~~capital~~default ~~expenditures~~occurred ~~included~~under inthe financing agreements for the ~~table~~Spain solar projects as a result of a change of law that occurred in ~~Commitments~~December ~~above~~2012. This change of law, ~~FPL~~as ~~has~~well ~~commitments~~as ~~under~~another ~~long-term~~change ~~purchased~~of ~~power~~law ~~and~~that ~~fuel~~occurred ~~contracts~~in February 2013, negatively affected the projected economics of the projects. ~~FPL~~The isevent ~~obligated~~of ~~under~~default ~~take~~provides for, among other things, the right by the lenders to accelerate the payment of the project-~~or-pay~~related ~~purchased~~debt. Accordingly, ~~power~~approximately ~~contracts~~$631 ~~with~~million ~~JEA~~of long-term debt and ~~with~~$102 ~~subsidiaries~~million of ~~The~~noncurrent ~~Southern~~derivative ~~Company~~liabilities ~~(Southern~~related ~~subsidiaries)~~to interest rate swaps were reclassified to ~~pay~~current ~~for~~maturities ~~approximately~~of 1long-term debt and current derivative liabilities,~~330~~ mwrespectively, ~~annually~~on ~~through~~NEE's ~~2015~~condensed ~~and~~consolidated ~~375~~balance mwsheets ~~annually~~as ~~thereafter~~of ~~through~~March ~~2021~~31, 2013. ~~FPL~~The ~~also~~lenders ~~has~~have ~~various~~issued, ~~firm~~subject ~~pay-for-performance~~to ~~contracts~~specified qualifications, waivers through May 31, 2013 to ~~purchase~~allow ~~approximately~~the ~~705~~project mwborrowers ~~from~~to ~~certain~~draw ~~cogenerators~~additional ~~and~~debt ~~small~~under ~~power~~the ~~producers~~financing ~~(qualifying~~agreements ~~facilities)~~in ~~with~~order ~~expiration~~to ~~dates~~support ~~ranging~~their ~~from~~continued ~~2024~~construction ~~through~~of ~~2034~~the Spain solar projects. The ~~purchased~~parties ~~power~~to ~~contracts~~the ~~provide~~financing agreements have been in negotiations to seek to restructure the financing arrangements for ~~capacity~~the projects and, ~~energy~~on ~~payments~~March 20, 2013, NEECH filed a lawsuit in the U. ~~Energy~~S. ~~payments~~District ~~are~~Court ~~based~~for onthe Southern District of New York against the ~~actual~~lenders ~~power~~requesting ~~taken~~that ~~under~~the ~~these~~court ~~contracts. Capacity~~confirm ~~payments~~NEECH's ~~for~~conclusion that its obligations to the ~~pay-for-performance~~lenders ~~contracts~~under the financing agreements are ~~subject~~limited, as a result of changes of law, to guaranteeing the ~~qualifying~~payment ~~facilities~~of ~~meeting~~the ~~certain~~remaining ~~contract~~unfunded ~~conditions. FPL~~base ~~has~~equity ~~contracts~~commitment ~~with~~(approximately ~~expiration~~$40 ~~dates~~million ~~through~~remaining ~~2036~~at ~~for~~March 31, 2013) specified under the ~~purchase~~financing ~~and~~agreements, ~~transportation~~as opposed to guaranteeing the payment of ~~natural~~all ~~gas~~debt ~~and~~outstanding ~~coal~~under the financing agreements ($653 million at March 31, 2013) as well as associated interest rate swap breakage ($173 million at March 31, 2013) and ~~storage~~other specified costs. There can be no assurance that the court will agree with NEECH's position that its guarantee is limited as a result of ~~natural~~changes ~~gas~~of law or that the financing arrangements will be successfully restructured.

~~NEER~~ has entered into contracts primarily for the purchase of wind turbines and towers, solar reflectors, steam turbine generators and heat collection elements and related construction and development activities, as well as for the supply of uranium, conversion, enrichment and fabrication of nuclear fuel, with expiration dates ranging from December 2012 through 2030, approximately $1.7 billion of which is included in the estimated capital expenditures table in Commitments above. In addition, NEER has contracts primarily for the purchase, transportation and storage of natural gas and firm transmission service with expiration dates ranging from December 2012 through 2033.29

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~The~~Contracts ~~transmission~~- ~~business~~In addition to the estimated capital expenditures included in ~~Corporate~~the ~~and~~table ~~Other~~in Commitments above, FPL has ~~entered~~commitments ~~into~~under long-term purchased power and fuel contracts. FPL ~~primarily~~is obligated under take-or-pay purchased power contracts with JEA and with subsidiaries of The Southern Company (Southern subsidiaries) to pay for ~~development~~approximately 1,330 mw annually through 2015 and ~~construction~~375 ~~activities~~mw ~~relating~~annually thereafter through 2021. FPL also has various firm pay-for-performance contracts to ~~Lone~~purchase ~~Star's~~approximately ~~transmission~~705 ~~line~~mw from certain cogenerators and ~~other~~small ~~associated~~power producers (qualifying facilities,) ~~all~~with ofexpiration ~~which~~dates isranging ~~included~~from in2024 through 2034. The purchased power contracts provide for capacity and energy payments. Energy payments are based on the ~~estimated~~actual ~~capital~~power ~~expenditures~~taken ~~table~~under inthese ~~Commitments~~contracts. Capacity ~~above~~payments for the pay-for-performance contracts are subject to the qualifying facilities meeting certain contract conditions. FPL has contracts with expiration dates through 2036 for the purchase and transportation of natural gas and coal, and storage of natural gas.

~~The~~NEER ~~required~~has ~~capacity~~entered ~~and/or~~into ~~minimum~~contracts ~~payments~~primarily ~~under~~for the ~~contracts~~purchase ~~discussed~~of solar ~~above~~reflectors, wind turbines and towers, steam turbine generators and heat collection elements and related construction and development activities, as well as for the supply of ~~September 30~~uranium, ~~2012~~conversion, ~~were~~enrichment and fabrication of nuclear fuel, with expiration dates ranging from June 2013 through 2030, approximately $1.2 billion of which is included in the estimated ascapital ~~follows:~~expenditures table in Commitments above. In addition, NEER has contracts primarily for the purchase, transportation and storage of natural gas and firm transmission service with expiration dates ranging from June 2013 through 2033.

	Remainder of 2012		2013		2014		2015		2016		Thereafter
	(millions)
FPL:
Capacity charges:(a)
Qualifying facilities	$	75	$	270	$	275	$	280	$	245	$	2,415
JEA and Southern subsidiaries	$	60	$	230	$	220	$	195	$	70	$	155
Minimum charges, at projected prices:
Natural gas, including transportation and storage(b)	$	495	$	1,580	$	1,065	$	570	$	535	$	6,935
Coal(b)	$	25	$	90	$	35	$	5	$	5	$	—
NEER	$	610	$	690	$	235	$	85	$	105	$	600
Corporate and Other(c)	$	65	$	30	$	10	$	15	$	15	$	20

The required capacity and/or minimum payments under the contracts discussed above as of March 31, 2013 were estimated as follows:

(a) Capacity charges under these contracts, substantially all of which are recoverable through the capacity clause, totaled approximately $129 million and $128 million for the three months ended September 30, 2012 and 2011, respectively, and approximately $391 million and $383 million for the nine months ended September 30, 2012 and 2011, respectively. Energy charges under these contracts, which are recoverable through the fuel clause, totaled approximately $110 million and $135 million for the three months ended September 30, 2012 and 2011, respectively, and approximately $232 million and $348 million for the nine months ended September 30, 2012 and 2011, respectively.



	Remainder of 2013		2014		2015		2016		2017		Thereafter
	(millions)
FPL:
Capacity charges:^(a)
Qualifying facilities	$	210	$	285	$	290	$	250	$	255	$	2,225
JEA and Southern subsidiaries	$	170	$	215	$	195	$	70	$	50	$	10
Minimum charges, at projected prices:
Natural gas, including transportation and storage^(b)	$	1,815	$	1,360	$	570	$	535	$	530	$	6,405
Coal^(b)	$	70	$	35	$	5	$	5	$	—	$	—
NEER	$	640	$	365	$	125	$	115	$	65	$	580
Corporate and Other^(c)	$	25	$	10	$	15	$	10	$	10	$	10

————————————

(a)

Capacity charges under these contracts, substantially all of which are recoverable through the capacity clause, totaled approximately $126 million and $133 million for the three months ended March 31, 2013 and 2012, respectively. Energy charges under these contracts, which are recoverable through the fuel clause, totaled approximately $23 million and $39 million for the three months ended March 31, 2013 and 2012, respectively.


(b)	Recoverable through the fuel clause.

(c) Includes an approximately $68 million commitment to invest in clean power and technology businesses through ~~2017~~2021.

Insurance - Liability for accidents at nuclear power plants is governed by the Price-Anderson Act, which limits the liability of nuclear reactor owners to the amount of insurance available from both private sources and an industry retrospective payment plan. In accordance with this Act, NEE maintains $375 million of private liability insurance per site, which is the maximum obtainable, and participates in a secondary financial protection system, which provides up to $12.2 billion of liability insurance coverage per incident at any nuclear reactor in the United States. Under the secondary financial protection system, NEE is subject to retrospective assessments of up to $940 million ($470 million for FPL), plus any applicable taxes, per incident at any nuclear reactor in the United States, payable at a rate not to exceed $140 million ($70 million for FPL) per incident per year. NEE and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook, Duane Arnold Energy Center (Duane Arnold) and St. Lucie Unit No. 2, which approximates $14 million, $35 million and $18 million, plus any applicable taxes, per incident, respectively.

NEE participates in a nuclear insurance mutual company that provides $2.75 billion of limited insurance coverage per occurrence per site for property damage, decontamination and premature decommissioning risks at its nuclear plants. The proceeds from such insurance, however, must first be used for reactor stabilization and site decontamination before they can be used for plant repair. Effective April 1, 2013, a $1.5 billion sublimit was established for non-nuclear perils. NEE also participates in an insurance program that provides limited coverage for replacement power costs if a nuclear plant is out of service for an extended period of time because of an accident. In the event of an accident at one of NEE's or another participating insured's nuclear plants, NEE could be assessed up to $~~178~~197 million ($~~102~~116 million for FPL), plus any applicable taxes, in retrospective premiums in a policy year. NEE and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook, Duane Arnold and St. Lucie Unit No. 2, which approximates $23 million, $45 million and $4 million, plus any applicable taxes, respectively.

~~Due~~ to the high cost and limited coverage available from third-party insurers, NEE does not have insurance coverage for a substantial portion of its transmission and distribution property and has no insurance coverage for FPL FiberNet's fiber-optic cable. Should FPL's future storm restoration costs exceed the reserve amount established through the issuance of storm-recovery bonds by a VIE in 2007, FPL may recover storm restoration costs, subject to prudence review by the FPSC, either through surcharges approved by the FPSC or through securitization provisions pursuant to Florida law.30

In the event of a loss, the amount of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered from customers in the case of FPL, would be borne by NEE and FPL and could have a material adverse effect on NEE's and FPL's financial condition, results of operations and liquidity.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

~~Legal~~Due ~~Proceedings~~to ~~- In November 1999,~~ the ~~Attorney~~high ~~General~~cost ofand ~~the~~limited ~~United~~coverage ~~States,~~available onfrom ~~behalf~~third-party ~~of the U.S. Environmental Protection Agency (EPA)~~insurers, ~~brought~~NEE andoes ~~action~~not inhave ~~the~~property ~~U.S.~~insurance ~~District~~coverage ~~Court~~ for ~~the~~a ~~Northern~~substantial ~~District~~portion of Georgia against Georgia Power Company and other subsidiaries of The Southern Company for certain alleged violations of the Prevention of Significant Deterioration (PSD) provisions and the New Source Performance Standards (NSPS) of the Clean Air Act. In May 2001, the EPA amended its ~~complaint~~transmission ~~to allege, among other things, that Georgia Power Company constructed~~ and isdistribution ~~continuing~~property ~~to operate Scherer Unit No. 4, in which FPL owns a 76% interest, without obtaining a PSD permit, without complying with NSPS requirements,~~ and ~~without~~has ~~applying~~no ~~best~~property ~~available~~insurance ~~control~~coverage ~~technology~~ for ~~nitrogen~~FPL oxides, sulfur dioxides and particulate matter as required by the Clean Air Act. It also alleges that unspecified major modifications have been made at Scherer Unit No. 4 that require its compliance with the aforementioned Clean Air Act provisions. The EPA seeks injunctive relief requiring the installation of best available control technology and civil penalties. Under the EPAFiberNet's ~~civil~~fiber-optic penalty rules, the EPA could assess up to $25,000 per day for each violation from an unspecified date after June 1, 1975 through January 30, 1997, up to $27,500 per day for each violation from January 31, 1997 through March 15, 2004, up to $32,500 per day for each violation from March 16, 2004 through January 12, 2009 and up to $37,500 per day for each violation thereaftercable. ~~Georgia~~Should ~~Power Company has answered the amended complaint, asserting that it has complied with all requirements of the Clean Air Act, denying the plaintiff~~FPL's ~~allegations~~future ofstorm ~~liability,~~restoration ~~denying~~costs ~~that~~exceed the ~~plaintiff~~reserve isamount ~~entitled~~established tothrough ~~any of~~ the ~~relief~~issuance ~~that~~of itstorm-recovery ~~seeks~~bonds ~~and~~by ~~raising various other defenses. In June 2001,~~ a ~~federal~~VIE ~~district~~in ~~court stayed discovery and administratively closed the case and the EPA has not yet moved to reopen the case. In April~~ 2007, ~~the~~FPL ~~U.S.~~may ~~Supreme~~recover ~~Court~~storm inrestoration acosts, ~~separate~~subject ~~unrelated~~to ~~case~~prudence ~~rejected~~review anby ~~argument that a "major modification" occurs at a plant only when there is a resulting increase in~~ the ~~hourly rate of air emissions. Georgia Power Company has made a similar argument in defense of its case~~FPSC, ~~but~~either ~~has~~through ~~other~~surcharges ~~factual~~approved ~~and~~by ~~legal~~the ~~defenses~~FPSC ~~that~~or ~~are~~through ~~unaffected~~securitization byprovisions ~~the~~pursuant ~~U.S.~~to ~~Supreme~~Florida ~~Court's decision~~law.

In the event of a loss, the amount of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered from customers in the case of FPL or Lone Star Transmission, LLC (Lone Star), would be borne by NEE and/or FPL and/or Lone Star, as the case may be, and could have a material adverse effect on NEE's and FPL's financial condition, results of operations and liquidity.

Legal Proceedings - In November 1999, the Attorney General of the United States, on behalf of the U.S. Environmental Protection Agency (EPA), brought an action in the U.S. District Court for the Northern District of Georgia against Georgia Power Company and other subsidiaries of The Southern Company for certain alleged violations of the Prevention of Significant Deterioration (PSD) provisions and the New Source Performance Standards (NSPS) of the Clean Air Act. In May 2001, the EPA amended its complaint to allege, among other things, that Georgia Power Company constructed and is continuing to operate Scherer Unit No. 4, in which FPL owns an interest of approximately 76%, without obtaining a PSD permit, without complying with NSPS requirements, and without applying best available control technology for nitrogen oxides, sulfur dioxides and particulate matter as required by the Clean Air Act. It also alleges that unspecified major modifications have been made at Scherer Unit No. 4 that require its compliance with the aforementioned Clean Air Act provisions. The EPA seeks injunctive relief requiring the installation of best available control technology and civil penalties. Under the EPA's civil penalty rules, the EPA could assess up to $25,000 per day for each violation from an unspecified date after June 1, 1975 through January 30, 1997, up to $27,500 per day for each violation from January 31, 1997 through March 15, 2004, up to $32,500 per day for each violation from March 16, 2004 through January 12, 2009 and up to $37,500 per day for each violation thereafter. Georgia Power Company has answered the amended complaint, asserting that it has complied with all requirements of the Clean Air Act, denying the plaintiff's allegations of liability, denying that the plaintiff is entitled to any of the relief that it seeks and raising various other defenses. In June 2001, a federal district court stayed discovery and administratively closed the case and the EPA has not yet moved to reopen the case. In April 2007, the U.S. Supreme Court in a separate unrelated case rejected an argument that a "major modification" occurs at a plant only when there is a resulting increase in the hourly rate of air emissions. Georgia Power Company has made a similar argument in defense of its case, but has other factual and legal defenses that are unaffected by the U.S. Supreme Court's decision.

In 1995 and 1996, NEE, through an indirect subsidiary, purchased from Adelphia Communications Corporation (Adelphia) 1,091,524 shares of Adelphia common stock and 20,000 shares of Adelphia preferred stock (convertible into 2,358,490 shares of Adelphia common stock) for an aggregate price of approximately $35,900,000. On January 29, 1999, Adelphia repurchased all of these shares for $149,213,130 in cash. In June 2004, Adelphia, Adelphia Cablevision, L.L.C. and the Official Committee of Unsecured Creditors of Adelphia filed a complaint against NEE and its indirect subsidiary in the U.S. Bankruptcy Court, Southern District of New York. The complaint alleges that the repurchase of these shares by Adelphia was a fraudulent transfer, in that at the time of the transaction Adelphia (i) was insolvent or was rendered insolvent, (ii) did not receive reasonably equivalent value in exchange for the cash it paid, and (iii) was engaged or about to engage in a business or transaction for which any property remaining with Adelphia had unreasonably small capital. The complaint seeks the recovery for the benefit of Adelphia's bankruptcy estate of the cash paid for the repurchased shares, plus interest from January 29, 1999. NEE has filed an answer to the complaint. NEE believes that the complaint is without merit because, among other reasons, Adelphia will be unable to demonstrate that (i) Adelphia's repurchase of shares from NEE, which repurchase was at the market value for those shares, was not for reasonably equivalent value, (ii) Adelphia was insolvent at the time of the repurchase, or (iii) the repurchase left Adelphia with unreasonably small capital. The trial was completed in May 2012 and closing arguments were heard in July 2012.

In October 2004, TXU Portfolio Management Company (TXU) served FPL Energy Pecos Wind I, LP, FPL Energy Pecos Wind I GP, LLC, FPL Energy Pecos Wind II, LP, FPL Energy Pecos Wind II GP, LLC and Indian Mesa Wind Farm, LP (NEER Affiliates) as defendants in a civil action filed in the District Court in Dallas County, Texas. FPL Energy, LLC, now known as NextEra Energy Resources, LLC, was added as a defendant in 2005. The petition alleged that the NEER Affiliates had contractual obligations to produce and sell to TXU a minimum quantity of energy and renewable energy credits each year during the period from 2002 through 2005 and that the NEER Affiliates failed to meet this obligation. The plaintiff asserted claims for breach of contract and declaratory judgment and sought damages of approximately $34 million plus attorneys' fees, costs and interest. Following a jury trial in 2007, among other findings, both TXU and the NEER Affiliates were found to have breached the contracts. In August 2008, the trial court issued a final judgment holding that the contracts were not terminated and neither party was entitled to recover any damages. In November 2008, TXU appealed the final judgment to the Fifth District Court of Appeals in Dallas, Texas. In an opinion issued in July 2010, the appellate court reversed portions of the trial court's judgment, ruling that the contracts' liquidated damage provision is an enforceable liquidated damage clause. The appellate court ordered that the case be remanded back to the trial court for further proceedings to determine the amount of damages payable by the NEER Affiliates. The NEER Affiliates filed a motion for rehearing of the appellate court’s decision, which motion was denied, and in April 2011 filed a petition for review of the appellate court decision with the Texas Supreme Court. In February 2012, the Texas Supreme Court granted the petition for review and oral arguments were heard in October 2012.

~~NEE~~ and FPL are vigorously defending, and believe that they or their affiliates have meritorious defenses to, the lawsuits described above. In addition to the legal proceedings discussed above, NEE and its subsidiaries, including FPL, are involved in other legal and regulatory proceedings, actions and claims in the ordinary course of their businesses. Generating plants in which NEE or FPL has an ownership interest are also involved in legal and regulatory proceedings, actions and claims, the liabilities from which, if any, would be shared by NEE or FPL. In the event that NEE and FPL, or their affiliates, do not prevail in the lawsuits described above or these other legal and regulatory proceedings, actions and claims, there may be a material adverse effect on their financial statements. While management is unable to predict with certainty the outcome of the lawsuits described above or these other legal and regulatory proceedings, actions and claims, based on current knowledge it is not expected that their ultimate resolution, individually or collectively, will have a material adverse effect on the financial statements of NEE or FPL.31

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

10NEE and FPL are vigorously defending, and believe that they or their affiliates have meritorious defenses to, the lawsuits described above. ~~Segment~~In ~~Information~~addition to the legal proceedings discussed above, NEE and its subsidiaries, including FPL, are involved in other legal and regulatory proceedings, actions and claims in the ordinary course of their businesses. Generating plants in which subsidiaries of NEE, including FPL, have an ownership interest are also involved in legal and regulatory proceedings, actions and claims, the liabilities from which, if any, would be shared by such subsidiary. In the event that NEE and FPL, or their affiliates, do not prevail in the lawsuits described above or these other legal and regulatory proceedings, actions and claims, there may be a material adverse effect on their financial statements. While management is unable to predict with certainty the outcome of the lawsuits described above or these other legal and regulatory proceedings, actions and claims, based on current knowledge it is not expected that their ultimate resolution, individually or collectively, will have a material adverse effect on the financial statements of NEE or FPL.

11. Segment Information

NEE's reportable segments are FPL, a rate-regulated electric utility, and NEER, a competitive energy business. NEER's segment information includes an allocation of interest expense from NEECH based on a deemed capital structure of 70% debt and allocated shared service costs. Corporate and Other represents other business activities, other segments that are not separately reportable and eliminating entries. NEE's segment information is as follows:

	Three Months Ended September 30,
	Three Months Ended March 31,
	2012											2011
	2013											2012
	FPL		NEER(a)				Corporateand Other			NEEConsoli-dated		FPL		NEER(a)			Corporateand Other				NEEConsoli-dated
										(millions)
Operating revenues	$	2,~~975~~188	$	~~808~~1,016			$	6075		$	3,~~843~~279	$	32,~~152~~224	$	1,~~172~~090		$	5857			$	43,~~382~~371
Operating expenses	$	21,~~256~~645	$	~~785~~1,149		(b)	$	5351		$	32,~~094~~845	$	21,~~496~~743	$	~~920~~779	(c)	$	5546			$	32,~~471~~568
Net income	$	392	$	44		(b)	$	(21	)	$	415	$	347	$	67	(b)	$	(7	)	(c)	$	407
Income (loss) from continuing operations	$	288	$	(215	)	(d)	$	11		$	84	$	239	$	221	(d)	$	1			$	461
Net gain from discontinued operations, net of income taxes(e)	$	—	$	175			$	13		$	188	$	—	$	—		$	—			$	—
Net income (loss)	$	288	$	(40	)	(d)	$	24		$	272	$	239	$	221	(d)	$	1			$	461

	Nine Months Ended September 30,
	March 31, 2013										December 31, 2012
	2012										2011
	FPL		NEER			Corporateand Other			NEEConsoli-dated		FPL		NEER			Corporateand Other			NEEConsoli-dated
	FPL		NEER(a)			Corporateand Other			NEEConsoli-dated		FPL		NEER(a)			Corporateand Other			NEEConsoli-dated
									(millions)
Operating revenues	$	7,778	$	2,929		$	174		$	10,881	$	8,200	$	3,110		$	166		$	11,476
Total assets	$	35,454	$	26,394		$	1,995		$	63,843	$	34,853	$	27,139	(f)	$	2,447		$	64,439
Operating expenses	$	5,916	$	2,201		$	149		$	8,266	$	6,566	$	2,520	(d)	$	144		$	9,230
Net income	$	984	$	516	(b)	$	(18	)	$	1,482	$	852	$	371	(b)(e)	$	33	(c)(f)	$	1,256

	September 30, 2012								December 31, 2011
	FPL		NEER		Corporateand Other		NEEConsoli-dated		FPL		NEER		Corporateand Other		NEEConsoli-dated
							(millions)
Total assets	$	34,120	$	25,761	$	2,168	$	62,049	$	31,816	$	23,459	$	1,913	$	57,188

————————————


(a)	Interest expense allocated from NEECH is based on a deemed capital structure of 70% debt. For this purpose, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual non-utility interest expense is included in Corporate and Other.

(b) ~~See~~Includes ~~Note~~an 5impairment ~~for~~charge aon ~~discussion of~~ NEER's ~~tax~~Spain ~~benefits~~solar ~~related~~projects ~~to PTCs. 2011 includes after-tax loss on natural gas-fired generating assets held for sale~~ of $91300 million. See Note 3 - Nonrecurring Fair Value Measurements.

(c) ~~Includes~~Amount ~~after-tax~~is ~~loss~~restated onto ~~natural~~conform ~~gas-fired~~to ~~generating~~current ~~assets~~year's ~~held for sale of $6 million~~presentation. ~~See Note 3 - Nonrecurring Fair Value Measurements.~~

(d) Includes ~~impairment~~NEER's tax benefits related to PTCs and in 2013 also includes after-tax charges of ~~approximately~~ $51342 million associated with the impairment of the Spain solar projects. See Note 3 - Nonrecurring Fair Value Measurements and Note 5.

(e) ~~Includes after-tax impairment charges of approximately $31 million.~~ See Note ~~3 - Nonrecurring Fair Value Measurements~~6.

(f) Includes ~~the~~assets ~~state~~held ~~deferred~~for ~~income~~sale ~~tax benefit~~ of approximately $64335 million. ~~See Note 5.~~

33 32

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

1112. Summarized Financial Information of NEECH

NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL. Most of NEECH's debt, including its debentures, and payment guarantees are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows:

Condensed Consolidating Statements of Income

	Three Months Ended September 30,
	Three Months Ended March 31,
	2012												2011
	2013												2012
	NEE(Guarantor)			NEECH			Other(a)			NEEConsoli-dated			NEE(Guarantor)			NEECH			Other(a)			NEEConsoli-dated
										(millions)
Operating revenues	$	—		$	~~871~~1,094		$	2,~~972~~185		$	3,~~843~~279		$	—		$	1,~~232~~151		$	32,~~150~~220		$	43,~~382~~371
Operating expenses	(5		)	(836		)	(2,253		)	(3,094		)	(4		)	(973		)	(2,494		)	(3,471		)
Operating expenses(b)	(3		)	(1,200		)	(1,642		)	(2,845		)	(4		)	(825		)	(1,739		)	(2,568		)
Interest expense	(2		)	(~~155~~170		)	(~~102~~100		)	(~~259~~272		)	(3		)	(~~164~~161		)	(98101		)	(265		)
Equity in earnings of subsidiaries	~~416~~249			—			(~~416~~249		)	—			~~416~~458			—			(~~416~~458		)	—
Other income (deductions) - net	4			61			14			79			1			(86		)	4			(81		)
Other income (deductions) - net(b)	—			73			17			90			—			73			7			80
Income (loss) before income taxes	413			(59		)	215			569			410			9			146			565
Income (loss) from continuing operations before income taxes	244			(203		)	211			252			451			238			(71		)	618
Income tax expense (benefit)	(215		)	~~(82~~11		)	~~238~~172			~~154~~168			3(10		)	~~(60~~19		)	~~215~~148			~~158~~157
Net income (loss)	$	415		$	23		$	(23	)	$	415		$	407		$	69		$	(69	)	$	407
Income (loss) from continuing operations	259			(214		)	39			84			461			219			(219		)	461
Net gain from discontinued operations, net of income taxes	13			175			—			188			—			—			—			—
Net income (loss)	$	272		$	(39	)	$	39		$	272		$	461		$	219		$	(219	)	$	461

	Nine Months Ended September 30,
	2012												2011
	NEE(Guarantor)			NEECH			Other(a)			NEEConsoli-dated			NEE(Guarantor)			NEECH			Other(a)			NEEConsoli-dated
										(millions)
Operating revenues	$	—		$	3,112		$	7,769		$	10,881		$	—		$	3,285		$	8,191		$	11,476
Operating expenses	(13		)	(2,346		)	(5,907		)	(8,266		)	(11		)	(2,662		)	(6,557		)	(9,230		)
Interest expense	(8		)	(479		)	(308		)	(795		)	(10		)	(486		)	(279		)	(775		)
Equity in earnings of subsidiaries	1,480			—			(1,480		)	—			1,214			—			(1,214		)	—
Other income (deductions) - net	5			180			30			215			1			40			17			58
Income (loss) before income taxes	1,464			467			104			2,035			1,194			177			158			1,529
Income tax expense (benefit)	(18		)	(29		)	600			553			(62		)	(185		)	520			273
Net income (loss)	$	1,482		$	496		$	(496	)	$	1,482		$	1,256		$	362		$	(362	)	$	1,256

————————————

(a) Represents FPL and consolidating adjustments.

(b) Prior year amounts are restated to conform to the current year's presentation.

Condensed Consolidating Statements of Comprehensive Income

	Three Months Ended September 30,
	Three Months Ended March 31,
	2012										2011
	2013										2012
	NEE(Guarantor)		NEECH			Other(a)			NEEConsoli-dated		NEE(Guarantor)		NEECH			Other(a)			NEEConsoli-dated
									(millions)
Comprehensive income (loss)	$	~~386~~391	$	(673	)	$	6(73	)	$	~~386~~391	$	~~178~~521	$	~~(160~~291	)	$	~~160~~(291	)	$	~~178~~521

	Nine Months Ended September 30,
	2012									2011
	NEE(Guarantor)		NEECH		Other(a)			NEEConsoli-dated		NEE(Guarantor)		NEECH		Other(a)			NEEConsoli-dated
								(millions)
Comprehensive income (loss)	$	1,417	$	437	$	(437	)	$	1,417	$	976	$	76	$	(76	)	$	976

————————————


(a)	Represents FPL and consolidating adjustments.

34 33

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Condensed Consolidating Balance Sheets

September 30, 2012

December 31, 2011

March 31, 2013

December 31, 2012

NEE(Guaran-tor)

NEECH

Other(a)

NEEConsoli-dated

NEE(Guaran-tor)

NEECH

Other(a)

NEEConsoli-dated

(millions)

PROPERTY, PLANT AND EQUIPMENT

Electric utility plant in service and other property

25,778

37,621

63,430

22,351

35,170

57,552

Electric plant in service and other property

27,030

38,428

65,490

26,638

38,248

64,917

Less accumulated depreciation and amortization

(68

)

(45,~~817~~060

)

(10,~~914~~598

)

(15,~~737~~666

)

(37

)

(4,~~143~~800

)

(10,~~916~~697

)

(15,~~062~~504

)

Total property, plant and equipment - net

2524

2021,~~961~~970

2627,~~707~~830

4749,~~693~~824

2824

1821,~~208~~838

2427,~~254~~551

4249,~~490~~413

CURRENT ASSETS

Cash and cash equivalents

1—

~~226~~179

1936

~~246~~215

~~339~~287

3740

~~377~~329

Receivables

~~112~~507

1,~~090~~047

~~920~~205

21,~~122~~759

84398

1,~~026~~208

~~692~~450

12,~~802~~056

Other

~~1,003~~903

1,~~061~~159

2,~~069~~071

5432

1,~~075~~421

~~1,613~~999

2,~~693~~852

Total current assets

~~118~~516

2,~~319~~129

21,~~000~~400

4,~~437~~045

90832

2,~~440~~916

21,~~342~~489

45,~~872~~237

OTHER ASSETS

Investment in subsidiaries

1516,~~858~~138

—

(1516,~~858~~138

)

—

1416,~~879~~064

—

(1416,~~879~~064

)

—

Other

~~745~~758

4,~~783~~718

4,~~391~~498

9,~~919~~974

~~513~~647

4,~~849~~749

4,~~464~~393

9,~~826~~789

Total other assets

16,~~603~~896

4,~~783~~718

(11,~~467~~640

)

9,~~919~~974

1516,~~392~~711

4,~~849~~749

(1011,~~415~~671

)

9,~~826~~789

TOTAL ASSETS

1617,~~746~~436

28,~~063~~817

17,~~240~~590

6263,~~049~~843

1517,~~510~~567

2529,~~497~~503

1617,~~181~~369

5764,~~188~~439

CAPITALIZATION

Common shareholders' equity

1516,~~886~~202

3,~~784~~660

(3,~~784~~660

)

1516,~~886~~202

1416,~~943~~068

43,~~030~~533

(43,~~030~~533

)

1416,~~943~~068

Long-term debt

—

1514,~~082~~565

78,~~632~~301

22,~~714~~866

—

1314,~~327~~848

78,~~483~~329

2023,~~810~~177

Total capitalization

1516,~~886~~202

18,~~866~~225

34,~~848~~641

3839,~~600~~068

1416,~~943~~068

1718,~~357~~381

34,~~453~~796

3539,~~753~~245

CURRENT LIABILITIES

Debt due within one year

—

24,~~712~~099

~~924~~959

35,~~636~~058

—

13,~~778~~624

~~379~~558

24,~~157~~182

Accounts payable

—

~~522~~475

~~672~~619

1,~~194~~094

—1

~~512~~667

~~679~~613

1,~~191~~281

Other

~~289~~614

1,~~410~~614

~~1,346~~396

32,~~045~~624

~~250~~440

12,~~520~~317

~~1,601~~659

3,~~371~~416

Total current liabilities

~~289~~614

46,~~644~~188

21,~~942~~974

78,~~875~~776

~~250~~441

36,~~810~~608

21,~~659~~830

68,~~719~~879

OTHER LIABILITIES AND DEFERRED CREDITS

Asset retirement obligations

—

~~495~~517

1,~~190~~222

1,~~685~~739

—

~~466~~508

1,~~145~~207

1,~~611~~715

Accumulated deferred income taxes

1,273

4,826

6,166

1,376

4,237

5,681

Deferred income taxes

1,040

5,550

6,660

497

891

5,315

6,703

Other

~~504~~550

2,~~785~~847

4,~~434~~203

7,~~723~~600

~~249~~561

23,~~488~~115

4,~~687~~221

7,~~424~~897

Total other liabilities and deferred credits

~~571~~620

4,~~553~~404

10,~~450~~975

15,~~574~~999

~~317~~1,058

4,~~330~~514

10,~~069~~743

1416,~~716~~315

COMMITMENTS AND CONTINGENCIES

TOTAL CAPITALIZATION AND LIABILITIES

1617,~~746~~436

28,~~063~~817

17,~~240~~590

6263,~~049~~843

1517,~~510~~567

2529,~~497~~503

1617,~~181~~369

5764,~~188~~439

————————————


(a)	Represents FPL and consolidating adjustments.

35 34

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

(unaudited)

Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2012												2011
	2013												2012
	NEE(Guaran-tor)			NEECH			Other(a)			NEEConsoli-dated			NEE(Guaran-tor)			NEECH			Other(a)			NEEConsoli-dated
										(millions)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	~~662~~350		$	~~878~~295		$	~~1,617~~437		$	31,~~157~~082		$	~~979~~307		$	~~1,071~~265		$	~~1,067~~263		$	~~3,117~~835
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, independent power and other investments and nuclear fuel purchases	—			(31,~~492~~046		)	(~~3,197~~821		)	(61,~~689~~867		)	~~(16~~—		)	(~~1,950~~902		)	(21,~~351~~112		)	(42,~~317~~014		)
Capital contribution to FPL	~~(240~~—		)	—			~~240~~—			—			(~~310~~40		)	—			~~310~~40			—
Cash grants under the Recovery Act	—			~~105~~170			—			~~105~~170			—			~~301~~—			~~202~~—			~~503~~—
Change in loan proceeds restricted for construction	—			~~212~~112			—			~~212~~112			—			~~(596~~45		)	—			~~(596~~45		)
Other - net	—(52		)	~~(59~~29		)	~~(70~~30		)	~~(129~~7		)	16—			4(16		)	(3210		)	(1226		)
Net cash used in investing activities	(~~240~~52		)	(~~3,234~~735		)	(~~3,027~~791		)	(61,~~501~~578		)	(~~310~~40		)	(~~2,241~~873		)	(1,~~871~~082		)	(41,~~422~~995		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	—			~~3,632~~623			~~594~~—			~~4,226~~623			—			~~2,669~~566			~~248~~—			~~2,917~~566
Retirements of long-term debt	—			(~~1,272~~496		)	(49427		)	(~~1,321~~923		)	—			(~~1,643~~109		)	(4525		)	(~~1,688~~134		)
Proceeds from sale of differential membership interests	—			~~414~~—			—			~~414~~—			—			~~210~~303			—			~~210~~303
Net change in short-term debt	—			~~254~~166			~~142~~800			~~396~~966			—			~~639~~75			~~307~~507			~~946~~582
Issuances of common stock	386			—			—			386			39			—			—			39
Dividends on common stock	(279		)	—			—			(279		)	(248		)	—			—			(248		)
Dividends on common stock	(752		)	—			—			(752		)	(689		)	—			—			(689		)
Other - net	(21		)	39			(23		)	(5		)	(19		)	(309		)	317			(11		)
Other - net	(56		)	(785		)	705			(136		)	(19		)	(377		)	304			(92		)
Net cash provided by (used in) financing activities	(300		)	332			350			382			(267		)	526			799			1,058
Net cash provided by (used in) financing activities	(422		)	2,243			1,392			3,213			(669		)	1,498			814			1,643
Net decrease in cash and cash equivalents	(2		)	(108		)	(4		)	(114		)	—			(82		)	(20		)	(102		)
Net increase (decrease) in cash and cash equivalents	—			(113		)	(18		)	(131		)	—			328			10			338
Cash and cash equivalents at beginning of period	2			287			40			329			1			339			37			377
Cash and cash equivalents at beginning of period	1			339			37			377			—			282			20			302
Cash and cash equivalents at end of period	$	—		$	179		$	36		$	215		$	1		$	257		$	17		$	275
Cash and cash equivalents at end of period	$	1		$	226		$	19		$	246		$	—		$	610		$	30		$	640

————————————


(a)	Represents FPL and consolidating adjustments.

36 35

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This discussion should be read in conjunction with the Notes contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations (Management's Discussion) appearing in the 2011 Form 10-K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussion, all comparisons are with the corresponding items in the prior year period.

OVERVIEW

NEE’s operating performance is driven primarily by the operations of its two principal subsidiaries, FPL, which serves approximately 4.6 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the U.S., and NEER, which together with affiliated entities is the largest generator in ~~the~~North ~~U.S.~~America of renewable energy from the wind and sun. The table below presents NEE’s net income (loss) and earnings (loss) per share by reportable segment - FPL, NEER and Corporate and Other, which is primarily comprised of ~~interest expense,~~ the operating results of NEET, FPL FiberNet, ~~Lone Star~~ and other business activities, as well as other income and expense items, including interest expense, income taxes and eliminating entries (see Note 10 11 for additional segment information). The discussion that follows should be read in conjunction with the Notes contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations (Management's Discussion) appearing in the 2012 Form 10-K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussion, all comparisons are with the corresponding items in the prior year period.

	Net Income						Earnings Per Share,assuming dilution						Net Income					Earnings Per Share,assuming dilution
	Net Income (Loss)						Earnings (Loss)Per Share,assuming dilution
	Three Months Ended September 30,												Nine Months Ended September 30,
	Three Months EndedMarch 31,						Three Months EndedMarch 31,
	2012			2011			2012			2011			2012			2011		2012			2011
	2013			2012			2013			2012
	(millions, except per share amounts)
	(millions)
FPL	$	~~392~~288		$	~~347~~239		$	0.9368		$	0.8358		$	~~984~~		$	~~852~~	$	~~2.35~~		$	~~2.03~~
NEER(a)	44(40		)	67221			(0.1009		)	0.1653			~~516~~			~~371~~		~~1.23~~			~~0.89~~
Corporate and Other	~~(21~~24		)	(71		)	(0.05		)	~~(0.02~~—		)	~~(18~~		)	33		~~(0.03~~		)	~~0.08~~
NEE	$	~~415~~272		$	~~407~~461		$	0.9864		$	01.9711		$	~~1,482~~		$	~~1,256~~	$	~~3.55~~		$	~~3.00~~

______________________

____________________


(a)	NEER’s results reflect an allocation of interest expense from NEECH based on a deemed capital structure of 70% debt and allocated shared service costs.

Additional Outlook Matters

In addition to the initiatives described in the 2012 Form 10-K, investing in additional capital projects and improving other operations and maintenance (O&M) efficiency and productivity could provide incremental growth opportunities for NEE and FPL through 2016 as follows:

•

NEE, through its subsidiaries, may have the potential to deploy additional growth capital through 2016. FPL has identified potential incremental capital expenditures that have the potential to improve its long-term customer value proposition and create value for NEE shareholders. NEER expects to invest capital for additional U.S. wind projects with generation totaling 500 mw to 1,500 mw in 2013 and 2014 and potential incremental capital for solar projects with generation up to 300 mw through 2016. NEER also expects to deploy approximately $200 million to $250 million per year of net capital in its gas infrastructure business through 2016.


•	NEET is actively competing for new transmission projects throughout North America.

Also see Note 10 - Commitments.

Adjusted Earnings

NEE prepares its financial statements in accordance with ~~U.S.~~ generally accepted accounting principles in the U.S. (GAAP). However, management uses earnings excluding certain items (adjusted earnings), a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and as an input in determining whether performance goals are met for performance-based compensation under NEE’s employee incentive compensation plans. NEE also uses adjusted earnings when communicating its financial results and earnings outlook to investors. NEE’s management believes adjusted earnings provides a more meaningful representation of the company’s fundamental earnings power. Although the excluded amounts are properly included in the determination of net income in accordance with GAAP, management believes that the amount and/or nature of such items make period to period comparisons of operations difficult and potentially confusing. Adjusted earnings do not represent a substitute for net income, as prepared in accordance with GAAP.

~~Adjusted~~ earnings exclude the unrealized mark-to-market effect of non-qualifying hedges (as described below), other than temporary impairment (OTTI) losses on securities held in NEER’s nuclear decommissioning funds, net of the reversal of previously recognized OTTI losses on securities sold and losses on securities where price recovery was deemed unlikely (collectively, OTTI reversals) and, for 2011, the after-tax loss on natural gas-fired generating assets held for sale. 36

~~NEE~~Adjusted ~~and~~earnings ~~NEER~~exclude ~~segregate~~the ~~into two categories~~ unrealized mark-to-market ~~gains~~effect ~~and~~of ~~losses on energy derivative transactions which are used to manage commodity price risk. The first category, referred to as~~ non-qualifying hedges, ~~represents certain transactions entered into~~ (as ~~economic~~described ~~hedges~~below) ~~but~~and ~~the~~other ~~transactions~~than dotemporary ~~not~~impairment ~~meet~~(OTTI) ~~the~~losses ~~requirements~~on ~~for~~securities ~~hedge~~held ~~accounting~~in orNEER’s ~~hedge~~nuclear ~~accounting~~decommissioning ~~treatment~~funds, isnet ~~not elected. Changes in the fair value~~ of ~~those transactions are marked to market and reported in~~ the ~~consolidated~~reversal ~~statements~~ of ~~income,~~previously ~~resulting~~recognized inOTTI ~~earnings~~losses ~~volatility~~on ~~because~~securities ~~the~~sold ~~economic~~and ~~offset~~losses toon ~~the~~securities ~~positions~~where ~~which~~price ~~are~~recovery ~~required~~was todeemed beunlikely ~~marked to market~~ (~~such~~collectively, asOTTI ~~the physical assets from which power is generated~~reversals) ~~are not marked to market~~. ~~As a consequence~~However, ~~NEE's~~other ~~net~~adjustments ~~income~~may ~~reflects~~be ~~only~~made ~~the~~from ~~movement~~time into ~~one~~time ~~part~~with ~~of economically-linked transactions. For this reason, NEE's management views results expressed excluding~~ the ~~unrealized~~intent ~~mark-~~to~~-market~~ ~~impact~~provide ofmore ~~the non-qualifying hedges as a~~ meaningful measure of current period performance. The second category, referred to as trading activities, represents the net unrealized effect of actively traded positions entered into to take advantage of expected market price movements and ~~all~~comparable ~~other~~results ~~commodity hedging activities. At FPL, substantially all changes in the fair value~~ of ~~energy~~ongoing derivative transactions 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 or the capacity clauseoperations. ~~See Note 2.~~

37NEE and NEER segregate into two categories unrealized mark-to-market gains and losses on energy derivative transactions which are used to manage commodity price risk. The first category, referred to as non-qualifying hedges, represents certain transactions entered into as economic hedges but the transactions do not meet the requirements for hedge accounting or hedge accounting treatment is not elected. Changes in the fair value of those transactions are marked to market and reported in the consolidated statements of income, resulting in earnings volatility because the economic offset to the positions, such as the physical assets from which power is generated, are not marked to market. As a consequence, NEE's net income reflects only the movement in one part of economically-linked transactions. For this reason, NEE's management views results expressed excluding the unrealized mark-to-market impact of the non-qualifying hedges as a meaningful measure of current period performance. The second category, referred to as trading activities, which is included in adjusted earnings, represents the net unrealized effect of actively traded positions entered into to take advantage of expected market price movements and all other commodity hedging activities. At FPL, substantially all changes in the fair value of energy derivative transactions 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 or the capacity clause. See Note 2.

InDuring the ~~third~~three ~~quarter~~months ofended ~~2011~~March 31, a2013, ~~subsidiary~~an ofimpairment ~~NEER~~charge ~~entered~~of ~~into~~$300 anmillion ~~agreement~~($342 tomillion ~~sell~~after-tax) ~~its~~related ~~ownership~~to ~~interest~~the inSpain ~~four~~solar ~~natural~~projects ~~gas-fired~~was ~~generating~~recorded ~~plants~~in ~~with~~NEE's acondensed ~~total~~consolidated ~~generating~~statements ~~capacity~~ of ~~2,152 mw~~income. InSee ~~connection~~Note 3 ~~with~~- ~~the~~Nonrecurring ~~agreement~~Fair toValue ~~sell,~~Measurements ~~during~~and ~~the~~Note ~~three~~5. During ~~and~~the ~~nine~~same ~~months~~period, ~~ended~~an ~~September~~after-tax ~~30,~~net ~~2011,~~gain afrom ~~loss~~discontinued operations of ~~approximately~~ $~~148~~188 million ($97175 million ~~total~~recorded ~~after-tax~~at ~~with~~NEER and $9113 million ofrecorded ~~this~~at ~~after-tax~~Corporate ~~loss~~and ~~recorded by NEER~~Other) was recorded in NEE's condensed consolidated statements of income,. The ~~which~~after-tax ~~due~~net togain ~~its~~from ~~nature~~discontinued ~~and~~operations ~~significance~~consisted of $231 million for the March 2013 hydro sale, ~~was~~partly ~~excluded~~offset ~~from~~by ~~adjusted~~a ~~earnings. See~~$43 ~~Note 3~~million -write ~~Nonrecurring~~down ~~Fair~~associated ~~Value~~with ~~Measurements~~Maine fossil. ~~The~~See ~~sale~~Note of6. In ~~the~~2013, ~~four~~adjusted ~~natural~~earnings ~~gas-fired~~also ~~generating~~exclude ~~plants~~the ~~discussed~~after-tax ~~above~~charges ~~and~~associated with the ~~sale~~impairment of ~~one~~the ~~additional~~Spain ~~natural~~solar ~~gas~~projects and the after-~~fired~~tax ~~generating~~net ~~plant~~gain ~~were~~from ~~completed~~discontinued operations in ~~the~~order ~~fourth~~to ~~quarter~~make ofperiod ~~2011~~to period comparisons more meaningful.

The following table provides details of the adjustments to net income considered in computing NEE's adjusted earnings discussed above.

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
	(millions)
Net unrealized mark-to-market after-tax losses from non-qualifying hedge activity(a)	$	(130	)	$	(38	)	$	(28	)	$	(85	)
Net unrealized mark-to-market after-tax gains (losses) from non-qualifying hedge activity(a)	$	(52	)	$	37
Income (loss) from OTTI after-tax losses on securities held in NEER's nuclear decommissioning funds, net of OTTI reversals	$	13		$	(9	)	$	30		$	(5	)
Income from OTTI after-tax losses on securities held in NEER's nuclear decommissioning funds, net of OTTI reversals	$	3		$	2
After-tax loss on natural gas-fired generating assets held for sale(b)	$	—		$	(97	)	$	—		$	(97	)
After-tax charges associated with the impairment of the Spain solar projects	$	342		$	—
After-tax net gain from discontinued operations(b)	$	188		$	—

____________________

(a) For the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012~~2013, $~~131~~53 million ~~and $31 million, respectively,~~ of losses are included in NEER's net income; ~~the balance is included in Corporate and Other. For the three and nine months ended September 30, 2011,~~ $371 million ~~and $84 million, respectively,~~ of ~~losses~~gains are included in ~~NEER's net income; the balance is included in~~ Corporate and Other.

(b) For the three months ended March 31, 2013, $91175 million is included in NEER's net income; the balance is included in Corporate and Other.

The change in unrealized mark-to-market activity from non-qualifying hedges is primarily attributable to changes in forward power and natural gas prices, as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized. As a general rule, a gain (loss) in the non-qualifying hedge category is offset by decreases (increases) in the fair value of related physical asset positions in the portfolio or contracts, which are not marked to market under GAAP.

RESULTS OF OPERATIONS

Summary

NEE's net income for the three months ended ~~September~~March 3031, ~~2012~~2013 ~~and~~was ~~2011~~lower ~~was~~than ~~$415~~the ~~million~~prior ~~and~~period by $~~407~~189 million, ~~respectively,~~or an47 ~~increase~~cents ofper ~~$8 million~~share, ~~and~~primarily ~~reflects~~due ~~the~~to ~~following:~~lower results at NEER.

•FPL's ~~higher~~increase ~~results~~in atnet ~~FPL~~income offor ~~$45~~the ~~million~~three months ended March 31, 2013 was primarily ~~due~~driven toby continued investments in plant in service which resulted in ~~higher~~the use of FPL's surplus depreciation credit, to earn an 11% return on common equity as ~~permitted~~determined ~~under~~for ~~the~~regulatory ~~terms~~purposes (regulatory ROE) on its retail rate base. The use of the surplus depreciation credit is permitted by a January 2013 FPSC final order approving a stipulation and settlement ~~agreement~~between ~~regarding~~FPL and several intervenors in FPL's base ~~rates~~rate proceeding (~~2010~~2012 rate agreement) and, tofor ~~earn~~the anprior ~~11%~~period, ~~return~~a onFebruary 2011 ~~common~~FPSC ~~equity~~final asorder ~~determined~~approving ~~for~~a ~~regulatory~~stipulation ~~purposes~~and settlement agreement between FPL and principal parties in a prior rate case (~~regulatory~~2010 ~~ROE~~rate agreement). Although investment in ~~2012,~~plant in service balances were higher ~~cost~~than ~~recovery~~in ~~clause~~the ~~results~~prior ~~and~~year period, less surplus depreciation credit was used for the three months ended March 31, 2013 due, in part, to FPL's base rate increase in 2013 under the 2012 rate agreement. FPL's net income for the three months ended March 31, 2013 also benefited from a higher equity component of AFUDC (AFUDC - equity),.

NEER's results decreased for the three months ended March 31, 2013 primarily due to the $342 million of after-tax charges associated with the impairment of the Spain solar projects and net unrealized mark-to-market losses from non-qualifying hedge activity for the three months ended March 31, 2013 compared to gains on such hedges in the prior year period, partly offset by, the $175 million net after-tax gain from discontinued operations.

•Corporate ~~lower~~and Other's results atincreased ~~NEER~~for ofthe ~~$23~~three ~~million~~months ended March 31, 2013 primarily due to higher ~~net~~consolidating ~~unrealized~~income ~~mark-to-market~~tax ~~losses from non-qualifying hedge activity and lower results from the existing asset portfolio~~adjustments, ~~partly~~including ~~offset~~an byincome ~~the~~tax ~~absence~~benefit ofrelated ato ~~loss recorded in~~ the ~~prior~~net ~~year~~gain onfrom ~~natural~~discontinued ~~gas-fired~~operations, ~~generating assets held for sale~~ and ~~improved~~higher results from ~~the~~Lone ~~customer supply and proprietary power and gas trading businesses, and~~Star.

•NEE's ~~lower~~effective ~~results~~income attax ~~Corporate~~rates for the three months ended March 31, 2013 and ~~Other~~2012 ofwere ~~$14~~approximately ~~million~~67% and 25%, respectively. The increase in the rate for the three months ended March 31, 2013 is primarily due to anthe ~~impairment~~establishment ~~charge~~of a full valuation allowance on anthe ~~early~~deferred ~~stage~~tax ~~technology~~assets ~~investment~~associated with the Spain solar projects (see Note 3 - Nonrecurring Fair Value Measurements and Note 5). In addition, the rates for both periods reflect the effect of PTCs for wind projects at NEER and deferred income tax benefits associated with convertible ITCs under the Recovery Act. PTCs and 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 PTC roll off. PTCs for the three months ended March 31, 2013 and 2012 were approximately $59 million and $61 million, respectively. Deferred income tax benefits associated with convertible ITCs for the three months ended March 31, 2013 and 2012 were approximately $13 million and $12 million, respectively. See Note 5.

NEE's net income for the nine months ended September 30, 2012 and 2011 was $1,482 million and $1,256 million, respectively, an increase of $226 million, and reflects the following:

• higher results at FPL of $132 million primarily due to the reasons discussed above for the quarter, and

• higher results at NEER of $145 million primarily due to the absence of a loss recorded in the prior year on natural gas-fired generating assets held for sale, lower net unrealized mark-to-market losses from non-qualifying hedge activity and higher results from new investments, offset in part by lower results from the existing asset portfolio,

partly offset by,

• lower results at Corporate and Other of $51 million primarily due to lower consolidating income tax adjustments reflecting the absence of the state deferred income tax benefit recorded in 2011, higher interest expense and the impairment charge on an early stage technology investment.

NEE's effective income tax rates for the three and nine months ended September 30, 2012 were approximately 27% and 27%, respectively; NEE's effective income tax rates for the corresponding periods in 2011 were 28% and 18%. These rates reflect the effect of PTCs for wind projects at NEER and deferred income tax benefits associated with convertible ITCs under the Recovery Act. PTCs and 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 expiration of PTCs after ten years of production. PTCs for the three and nine months ended September 30, 2012 were approximately $35 million and $147 million, respectively, and $45 million and $208 million for the comparable periods in 2011. Deferred income tax benefits associated with convertible ITCs for the three and nine months ended September 30, 2012 were approximately $14 million and $37 million, respectively, and $9 million and $17 million for the comparable periods in 2011. NEE's effective income tax rate for the nine months ended September 30, 2011 was also reduced by the approximately $64 million state deferred income tax benefit recorded at Corporate and Other and the $26 million state ITC benefit. See Note 5.

FPL: Results of Operations

FPL’s net income for the three months ended ~~September 30~~March 31, ~~2012~~2013 and ~~2011 was $392 million and $347 million, respectively, an increase of $45 million. FPL’s net income for the nine months ended September 30,~~ 2012 ~~and 2011~~ was $~~984~~288 million and $~~852~~239 million, respectively, an increase of $~~132~~49 million. See Summary above for a discussion of the major drivers of ~~these~~this ~~increases~~increase.

FPL's operating revenues consisted of the following:

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

Three Months Ended March 31,

2012

2011

2012

2011

2013

2012

(millions)

Retail base

1,~~243~~030

~~1,263~~934

~~3,264~~

~~3,261~~

Fuel cost recovery

~~1,131~~709

~~1,312~~826

~~2,916~~

~~3,421~~

Other cost recovery clauses and pass-through costs, net of any deferrals

~~536~~388

~~514~~411

~~1,416~~

~~1,346~~

Other, primarily pole attachment rentals, transmission and wholesale sales and customer-related fees

6561

6353

~~182~~

~~172~~

Total

2,~~975~~188

32,~~152~~224

~~7,778~~

~~8,200~~

Retail Base

AsIncluded ~~permitted~~in byretail ~~the~~base ~~2010~~revenues ~~rate agreement,~~ for the ~~nine~~three months ended ~~September 30,~~March ~~2012~~31, ~~FPL~~2013 ~~collected~~were approximately $5279 million inof ~~additional retail base~~ revenues ~~through~~associated ~~the~~with ~~capacity~~new ~~clause~~retail ~~related~~base torates under the ~~placement~~2012 inrate ~~service of West County Energy Center (WCEC) Unit No~~agreement. ~~3 in May 2011.~~ Additional base revenues of approximately $750 million ~~and $17 million~~ were collected during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012,~~2013 ~~respectively,~~ related to new nuclear capacity of approximately 365 mw which was placed in service in ~~2011~~2012, as permitted by the FPSC's nuclear cost recovery rule. In 2013, FPL expects to collect approximately $245 million of additional base revenues related to the new nuclear capacity. Retail base rates are expected to increase approximately $164 million on an annualized basis beginning on April 24, 2013 with the entry into service of the Cape Canaveral unit.

Retail Customer Usage and Growth

For the three months ended ~~September 30~~March 31, ~~2012~~2013, FPL experienced a 34.52% decrease in average usage per retail customer, ~~reflecting~~primarily due to weather conditions and ~~other~~one ~~factors~~less day of sales in 2013, as 2012 was a leap year, which collectively decreased retail base revenues by approximately $3640 million. For the ~~nine~~three months ended ~~September 30~~March 31, ~~2012~~2013, FPL experienced a 20.67% ~~decrease~~increase in the average ~~usage~~number ~~per~~of ~~retail~~ customer, ~~reflecting weather and other factors~~accounts, ~~which~~increasing ~~decreased~~ retail base revenues by approximately $867 million. ~~Usage~~ ~~per~~FPL ~~retail~~expects ~~customer~~to ~~for~~acquire the ~~three~~City ~~and nine months ended September 30, 2011 includes two extra days~~ of ~~sales~~Vero ~~after~~Beach ~~adjusting~~electric ~~for~~utility asystem ~~change~~ in ~~2011~~2014, ~~from~~subject ~~a fiscal month~~ to aregulatory ~~calendar~~approvals ~~month. For the three~~ and ~~nine~~certain ~~months~~other ~~ended~~conditions ~~September~~precedent. This ~~30,~~acquisition ~~2012,~~is ~~FPL~~expected ~~experienced~~to aadd ~~0.7%~~approximately ~~and 0.6% increase~~34,000 ~~respectively, in the average number of~~ customer accounts~~, which increased retail base revenues by approximately $9 million and $20 million, respectively~~.

Cost Recovery Clauses

~~For~~Revenues ~~the~~from ~~three~~fuel ~~months ended September 30, 2012~~ and ~~2011,~~other cost recovery clauses ~~contributed~~and ~~$42~~pass-through ~~million~~costs, ~~and~~such ~~$28~~as ~~million,~~franchise ~~respectively~~fees, torevenue ~~FPL’s~~taxes ~~net~~and ~~income;~~storm-related ~~the~~surcharges, ~~amounts~~are ~~for~~largely ~~the~~a ~~nine~~pass-through ~~months~~of ~~ended~~costs. Such ~~September 30,~~revenues ~~2012~~also ~~and~~include ~~2011~~a ~~were~~return ~~$113~~on ~~million~~investment ~~and~~allowed ~~$76~~to ~~million,~~be ~~respectively. The~~recovered ~~increase~~through inthe cost recovery ~~clause~~clauses ~~results~~on ~~was~~certain assets, primarily ~~due to a return~~ related to ~~additional~~ nuclear capacity, ~~investments~~solar and environmental projects. InFor ~~2012,~~the itthree ismonths ~~expected~~ended ~~that~~March 31, 2013 and 2012, cost recovery clauses ~~will~~contributed ~~contribute~~$27 ~~higher~~million ~~earnings~~and ~~for~~$33 million, respectively, to FPL’s net income. The decrease is primarily as a result of ~~additional~~the collection in 2013 of retail base revenues related to new nuclear capacity ~~investments~~which was placed in service in 2012 (see Retail Base above). Fluctuations in fuel cost recovery revenues are primarily driven by changes in fuel and energy charges which are included in fuel, purchased power and interchange expense in the condensed consolidated statements of income, as well as by changes in energy sales. Fluctuations in revenues from other cost recovery clauses and pass-through costs are primarily driven by changes in storm-related surcharges, capacity charges, franchise fee costs, the impact of changes in ~~other operations and maintenance (~~O&M) and depreciation expenses on the underlying cost recovery clause, investment in solar and environmental projects, investment in nuclear capacity until such capacity goes into service and is recovered in base rates, pre-construction costs associated with the development of two additional nuclear units at the Turkey Point site and changes in energy sales. Capacity charges and franchise fee costs are included in fuel, purchased power and interchange and taxes other than income taxes and other, respectively, in the condensed consolidated statements of income. The decrease in fuel cost recovery revenues for the three months ended March 31, 2013 is primarily due to a lower average fuel factor.

39Other

~~Risk~~FPL ~~Management~~expects ~~Fuel~~revenues ~~Procurement~~from ~~Program~~wholesale sales to increase approximately $90 million in 2014 primarily due to growth of load served under existing wholesale contracts.

FPL uses a risk management fuel procurement program which was approved by the FPSC. The FPSC reviews the program activities and results for prudence on an annual basis as part of its annual review of fuel costs. The program is intended to manage fuel price volatility by locking in fuel prices for a portion of FPL’s fuel requirements. The current regulatory asset for the change in fair value of derivative instruments used in the fuel procurement program was approximately $59 million and $502 million at September 30, 2012 and December 31, 2011, respectively.

The decrease in fuel cost recovery revenues for the three months ended September 30, 2012 is primarily due to a lower average fuel factor of approximately $158 million and lower energy sales of $23 million. The decrease in fuel cost recovery revenues for the nine months ended September 30, 2012 is primarily due to a lower average fuel factor of approximately $442 million and lower energy sales of $63 million. The change from December 31, 2011 to September 30, 2012 in deferred clause and franchise expenses and deferred clause and franchise revenues was approximately $115 million and positively affected NEE’s and FPL’s cash flows from operating activities for the nine months ended September 30, 2012.

Other Items Impacting FPL Results

Fuel, Purchased Power and Interchange

The major components of FPL's fuel, purchased power and interchange expense are as follows:

	Three Months EndedSeptember 30,					Nine Months EndedSeptember 30,
	Three Months Ended March 31,
	2012			2011		2012		2011
	2013		2012
	(millions)
Fuel and energy charges during the period	$	~~1,117~~709	$	$758	~~1,249~~	$	~~2,805~~	$	~~3,363~~
Net collection of previously deferred retail fuel costs	9—		66	55		~~101~~		42
Other, primarily capacity charges, net of any capacity deferral	~~154~~111		111	~~175~~		~~395~~		~~449~~
Total	$	~~1,280~~820	$	$935	~~1,479~~	$	~~3,301~~	$	~~3,854~~

The decrease in fuel and energy charges for the three months ended ~~September~~March 3031, ~~2012~~2013 ~~reflects~~was ~~lower~~primarily ~~fuel~~due ~~and~~to ~~energy prices of $99 million and~~ lower ~~energy sales of $33 million. The decrease in~~ fuel and energy ~~charges for the nine months ended September 30, 2012 reflects lower fuel and energy~~ prices ~~of $494 million and lower energy sales of $64 million~~.

O&M Expenses

FPL's O&M expenses ~~increased~~decreased $6851 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2012,~~2013 ~~reflecting~~primarily ~~higher~~due ~~maintenance~~to the absence of nuclear outage costs ~~primarily~~incurred ~~due~~during toan outage in the ~~timing~~prior ~~and~~year, ~~extent~~as ofwell ~~nuclear~~as ~~and~~lower fossil ~~unit~~outage costs reflecting fewer outages ~~and~~in ~~higher~~the ~~insurance~~2013 period. Also, ~~restoration~~FPL's O&M expenses for the three months ended March 31, ~~tree~~2013 ~~trimming~~reflect ~~and~~lower ~~employee-related~~cost recovery clause costs of approximately $23 million, which did not significantly affect net income or the amount of surplus depreciation credit amortization.

Depreciation and Amortization Expense

The major components of FPL’s depreciation and amortization expense are as follows:

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
	(millions)
Surplus depreciation (credit) reversal recorded under the 2010 rate agreement	$	(33	)	$	47		$	(363	)	$	(84	)
Surplus depreciation credit recorded under the 2012 and 2010 rate agreements, respectively	$	(137	)	$	(165	)
Other depreciation and amortization recovered under base rates	~~254~~270			~~239~~251			~~756~~			~~699~~
Depreciation and amortization recovered under cost recovery clauses and securitized storm-recovery cost amortization	3348			1332			~~103~~			38
Total	$	~~254~~181		$	~~299~~118		$	~~496~~		$	~~653~~

~~Under~~The ~~the~~surplus ~~terms~~depreciation ofcredit ~~the~~recorded ~~2010~~for ~~rate~~the ~~agreement,~~three ~~FPL~~months ~~can~~ended ~~vary~~March ~~the~~31, ~~amount~~2013 ofand ~~surplus~~2012 ~~depreciation~~enabled ~~credit~~FPL ~~taken~~ to earn ~~up to~~ an 11% regulatory ROE. FPL's rate base has continued to grow during these periods as a result of increased plant investment. The ~~increase~~surplus depreciation credit recorded in the current period was lower than the prior year primarily due to additional base revenues collected in 2013 associated with new retail base rates under the 2012 rate agreement. The surplus depreciation credit recorded under the ~~2010~~2012 rate agreement ~~for~~reflects the ~~three~~amortization ~~and~~of ~~nine~~a ~~months~~depreciation ~~ended~~reserve ~~September~~surplus ~~30,~~remaining at the end of 2012 ~~enabled~~under ~~FPL~~the to2010 ~~earn~~rate ~~its~~order ~~11%~~that ~~regulatory~~FPL ~~ROE,~~must ~~primarily~~amortize asover athe ~~result~~term of ~~increased~~the ~~plant~~2012 ~~investment. As~~rate ofagreement; ~~September~~at March 3031, ~~2012,~~2013 approximately $~~222~~87 million of ~~surplus~~this ~~depreciation~~reserve ~~credit~~surplus ~~remained~~remains available for ~~use~~future ~~in 2012~~amortization. ~~For~~Also, FPL may amortize over the ~~three~~term ~~months~~of ~~ended~~the ~~September 30,~~2012 ~~2011,~~rate agreement a portion of FPL's ~~was~~fossil ~~required~~dismantlement reserve up to ~~reverse~~a maximum of $47176 million, ofsubject ~~the~~to ~~surplus~~certain ~~depreciation~~limits. Beginning ~~credit~~in ~~taken~~2013, ~~earlier~~such inamounts ~~2011~~are inbeing ~~order~~amortized toas ~~comply~~a ~~with~~reduction of regulatory liabilities - accrued asset removal costs on the ~~2010~~condensed ~~rate~~consolidated ~~agreement~~balance sheets. The increase in other depreciation and amortization expense recovered under base rates for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012~~2013 is primarily due to higher plant in service balances. The increase in depreciation and amortization recovered under cost recovery clauses and securitized storm-recovery cost amortization for the three ~~and nine~~ months ended ~~September 30~~March 31, ~~2012~~2013 is primarily due to ~~true~~higher ~~ups~~plant ofin ~~prior~~service ~~year~~balances ~~recoveries~~associated with environmental projects under the ~~FPSC's~~environmental ~~nuclear~~ cost recovery ~~rule~~clause.

Interest Expense

The ~~increase~~decrease in interest expense for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012~~2013 is primarily due to ~~additional~~lower average interest rates, lower interest expense on customer deposits reflecting lower rates and lower average customer deposit balances and higher debt ~~outstanding~~component of AFUDC (AFUDC - debt), partly offset by ~~lower~~higher average ~~interest~~debt ~~rates~~balances. The ~~and~~change ~~lower~~in ~~interest~~AFUDC ~~expense~~- ondebt ~~customer~~is ~~deposits~~due to the same factors as described below in AFUDC - equity.

AFUDC - Equity

The increase in AFUDC - equity for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012~~2013 isreflects ~~primarily due to additional~~ AFUDC - equity recorded on ~~the~~construction ~~Cape~~expenditures ~~Canaveral~~associated ~~and~~with the Riviera Beach ~~modernization projects~~, ~~partly~~Cape ~~offset~~Canaveral ~~for~~and ~~the~~Port ~~nine~~Everglades ~~months~~modernization ~~ended September 30, 2012 by the absence of AFUDC - equity on WCEC Unit No~~projects. ~~3, which was placed in service in May 2011.~~

FPL Rate Case

In March 2012, FPL filed a petition with the FPSC requesting, among other things, a base rate increase, on an annualized basis, of approximately $517 million effective January 2013 and an additional approximately $174 million commencing when FPL's modernized Cape Canaveral power plant becomes operational, which is expected to occur in June 2013. FPL's requested increases are based on an allowed regulatory ROE of 11.50%, with a range of plus or minus 100 basis points, consisting of a base ROE of 11.25% and a 0.25% ROE performance adder conditioned on FPL maintaining the lowest typical residential customer bill among all the electric utilities in Florida based on a twelve-month average. Additionally, FPL's petition proposed the continuation of the mechanism for recovery of future storm restoration costs provided under the 2010 rate agreement. Hearings on the base rate proceeding were held during the third quarter of 2012. The FPSC decision on this matter is pending the FPSC's decision on the proposed 2012 rate agreement described below.

In August 2012, FPL and several intervenors in FPL's base rate proceeding filed with the FPSC a joint motion for the FPSC to approve a stipulation and settlement signed by those parties (proposed 2012 rate agreement) that would resolve all matters in FPL's pending base rate proceeding. Key elements of the proposed 2012 rate agreement, which would be effective from January 2013 through December 2016, include, among other things, the following:

• New retail base rates and charges would be established resulting in an increase in retail base revenues of $378 million on an annualized basis commencing in January 2013.

• FPL's allowed regulatory ROE would be 10.70%, with a range of plus or minus 100 basis points. If FPL's earned regulatory ROE were to fall below 9.70%, FPL could seek retail base rate relief. If the earned regulatory ROE were to rise above 11.70%, any party to the proposed 2012 rate agreement other than FPL could seek a review of FPL's retail base rates.

• Retail base rates would be increased by the annualized base revenue requirements for FPL's three modernization projects (Cape Canaveral, Riviera and Port Everglades) as each of the modernized units becomes operational (which is expected in 2013, 2014 and 2016, respectively).

• Subject to certain conditions, FPL could amortize, over the term of the proposed 2012 rate agreement, any surplus depreciation reserve remaining at the end of 2012 plus a portion of FPL's fossil dismantlement reserve (collectively, the reserve) in an aggregate amount not to exceed $400 million, provided that in any year of the proposed 2012 rate agreement, FPL would amortize at least enough reserve to maintain a 9.70% earned regulatory ROE but would not amortize any reserve that would result in an earned regulatory ROE in excess of 11.70%.

• Future storm restoration costs would be recoverable on an interim basis beginning 60 days from the filing of a cost recovery petition, but capped at an amount that could produce a surcharge of no more than $4 for every 1,000 kwh of usage on residential bills during the first 12 months of cost recovery. Any additional costs would be eligible for recovery in subsequent years. If storm restoration costs were to exceed $800 million in any given calendar year, FPL could request an increase to the $4 surcharge to recover the amount above $800 million.

The proposed 2012 rate agreement is subject to FPSC approval. The State of Florida Office of Public Counsel opposes the proposed 2012 rate agreement and has petitioned the Florida Supreme Court to require the FPSC to terminate its consideration of the agreement. Hearings on the proposed 2012 rate agreement are scheduled for November 19-21, 2012. The FPSC is expected to rule on that agreement by the end of 2012.

Major Capital Projects

In April ~~2012~~2013, ~~the~~FPL ~~FPSC~~completed ~~issued an order approving~~ the ~~modernization~~final stage of ~~FPL's~~its ~~Port~~generation ~~Everglades~~uprate ~~power~~project ~~plant~~at toTurkey aPoint ~~high-efficiency~~Unit ~~natural~~No. ~~gas-fired approximately 1,280 mw unit, which is expected to be in service in mid-2016~~4. InOn ~~May~~April ~~2012~~24, ~~the Florida Industrial Power Users Group appealed the FPSC's order~~2013, ~~which appeal will be heard by the Florida Supreme Court. In addition,~~ FPL isplaced in ~~the~~service ~~process~~an ofapproximately ~~adding~~1,210 ~~at least 526~~ mw ofnatural ~~capacity~~gas-fired atcombined-cycle ~~its~~unit ~~existing nuclear units~~ at ~~St.~~Cape ~~Lucie and Turkey Point~~Canaveral. ~~The additional capacity is expected to be in service by the second quarter of 2013.~~

41 40

NEER: Results of Operations

NEER’s net income (loss) for the three months ended ~~September 30~~March 31, ~~2012~~2013 and ~~2011~~2012 was $44(40) million and $67221 million, respectively, a decrease of $23261 million. ~~NEER’s net income for the nine months ended September 30, 2012 and 2011 was $516 million and $371 million, respectively, an increase of $145 million.~~ The primary drivers, on an after-tax basis, of ~~these~~this ~~changes~~decrease were as follows:

	Increase (Decrease)From Prior Period
	Three Months EndedSeptember 30, 2012				Nine Months EndedSeptember 30, 2012
	Three Months Ended March 31, 2013
	(millions)
New investments(a)	$	2414			$	67
Existing assets:(a)
Existing assets(a)	(22			)
Wind	(6		)		(77		)
Gas infrastructure(b)	(12			)
Merchant	(43		)		(59		)
Customer supply and proprietary power and gas trading businesses(b)	19
Contracted	(38		)		(38		)
Interest expense, differential membership costs and other	(4			)
Total existing assets	(87		)		(174		)
Change in unrealized mark-to-market non-qualifying hedge activity(c)(d)	(90			)
Gas infrastructure(b)	(26		)		8
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals(d)	1
Customer supply and proprietary power and gas trading businesses(b)	56				47
Charges associated with the impairment of the Spain solar projects(e)	(342			)
Impairment charges in 2011	—				31
Net gain from discontinued operations(f)	175
Interest expense, differential membership costs and other	(9		)		(13		)
Net income decrease	$	(261		)
Change in unrealized mark-to-market non-qualifying hedge activity(c)(d)	(94		)		53
Loss on natural gas-fired generating assets held for sale(e)	91				91
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals(d)	22				35
Net income increase (decrease)	$	(23	)		$	145

______________________

_______________________

(a)

Includes PTCs and state ITCs on wind projects and, for new investments, deferred income tax and other benefits associated with convertible ITCs but does not include allocation of interest expense or corporate general and administrative expenses. Results from new projects are included in new investments during the first twelve months of operation. A project's results are included in existing assets beginning with the thirteenth month of operation.


(b)	Does not include allocation of interest expense or corporate general and administrative expenses.


(c)	See Note 2 and Overview related to derivative instruments.


(d)	See table in Overview for additional detail.

(e) See Note 3 - Nonrecurring Fair Value Measurements and Overview for additional information.


(f)	See Note 6 and Overview for additional information.

New Investments

Results from new investments for the three months ended ~~September 30~~March 31, ~~2012~~2013 ~~reflect~~increased ~~the~~primarily ~~following~~due to:

• the addition of approximately ~~486~~1,520 mw of wind and 4540 mw of solar generation during or after the three months ended ~~September~~March 3031, ~~2011~~2012, ~~and~~

• higher deferred income tax benefits associated with convertible ITCs of approximately $5 million.

Results from new investments for the nine months ended September 30, 2012 reflect the following:

• the addition of approximately 556 mw of wind and 45 mw of solar generation during or after the nine months ended September 30, 2011, and

• higher deferred income tax benefits associated with convertible ITCs of approximately $20 million,

partly offset by,

• lower ~~after-~~deferred income tax and other benefits associated with convertible ITCs of $910 million from the sale of membership interests where the investors elected to receive the convertible ITCs related to the underlying wind project; the pretax amount of such benefit is reflected in taxes other than income taxes and other in NEE's condensed consolidated statements of income for the nine months ended September 30, ~~2011.~~and


•	lower state ITCs of $4 million.

Existing Assets

~~Wind~~Results from NEER's existing asset portfolio for the three months ended March 31, 2013 decreased primarily due to:

~~For~~• ~~the~~lower ~~three months ended September 30, 2012, results from NEER's existing~~ wind ~~asset~~generation ~~portfolio decreased primarily due to the roll off~~ of PTCs on certain wind projects after ten years of production (PTC roll off). For the nine months ended September 30, 2012, results from NEER's existing wind asset portfolio decreased due to the absence of approximately $3327 million ~~of state ITC benefit recorded in the prior period and $35 million of PTC roll off~~, ~~with the balance primarily attributable to a lower wind resource.~~and

42• PTC roll off of $5 million,

Merchant

For the three months ended September 30, 2012, results from NEER's existing merchant asset portfolio decreased primarily due to:

• lower results at Seabrook of approximately $13 million primarily due to reduced capacity, lower priced hedges and higher O&M and depreciation expenses, partly offset by higher gains on decommissioning funds,

• lower results of $25 million in the Electric Reliability Council of Texas (ERCOT) region primarily due to market conditions as the prior year benefited from high market prices in August 2011, and

• lower hydro results of $4 million primarily due to a lower water resource and lower priced hedges.

For the nine months ended September 30, 2012, results from NEER's existing merchant asset portfolio decreased primarily due to:

• lower results at Seabrook of approximately $24 million primarily due to reduced capacity, lower priced hedges, lower gains on decommissioning funds and higher depreciation expense, partly offset by the absence of an extended refueling outage that occurred in 2011,

• lower results of $24 million in the ERCOT region primarily due to market conditions as the prior year benefited from high market prices in August 2011, and

• lower hydro results of $14 million primarily due to lower priced hedges and a lower water resource.

Contracted

For the three months ended September 30, 2012, results from NEER's existing contracted asset portfolio decreased primarily due to:

• the absence of earnings of approximately $25 million from certain natural gas-fired generating plants which were sold in the fourth quarter of 2011 (see Note 3 - Nonrecurring Fair Value Measurements), and

• lower results of $8 million at the Point Beach Nuclear Power Plant (Point Beach) primarily due to lower gains on decommissioning funds and higher O&M and depreciation expenses, partly offset by a higher contract price and the addition of approximately 83 mw of capacity which was completed in December 2011.

For the nine months ended September 30, 2012, results from NEER's existing contracted asset portfolio decreased primarily due to:

• the absence of earnings of approximately $34 million from the natural gas-fired generating plants which were sold in the fourth quarter of 2011, and

• lower results of $19 million related to the expiration of power sales agreements at certain joint venture projects, which is reflected in equity in earnings of equity method investees in NEE's condensed consolidated statements of income,

partly offset by,

• ~~higher~~increased ~~results~~generation ~~of $14 million~~ at ~~Point~~Seabrook ~~Beach primarily~~ due to the absence of a ~~planned~~2012 ~~outage~~reduction in ~~the prior year and the addition of 167 mw of~~ capacity~~, approximately one-half of which was completed in June 2011 and the other half of which was completed in December 2011, partly offset by higher O&M and depreciation expenses~~.

Gas Infrastructure

The decrease in gas infrastructure results for the three months ended ~~September 30~~March 31, ~~2012~~2013 ~~reflects~~is ~~the~~primarily ~~absence~~due ofto ~~gains from exiting~~ the ~~hedged~~absence ~~positions on a number~~ of ~~future~~gains ~~gas~~recorded ~~production opportunities~~ in ~~2011, partly offset by income from additional production in~~ 2012~~. The~~ ~~increase in gas infrastructure results for the nine months ended September 30, 2012 is primarily due to gains~~ from exiting the hedged positions on a number of future gas production opportunities ~~in the first quarter of 2012 and income from additional production~~, partly offset by ~~the~~income ~~absence of gains~~ from ~~exiting~~additional ~~the hedged positions on a number of future gas~~ production ~~opportunities which occurred~~ in ~~the third quarter of 2011~~2013.

Customer Supply and Proprietary Power and Gas Trading

Results from the customer supply and proprietary power and gas trading businesses increased for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2012~~2013 ~~increased~~ primarily due to ~~improved~~higher ~~market conditions in the third quarter of 2012. Results for the nine-month period were partly offset by lower~~ power and gas ~~trading~~marketing ~~results~~ and atrading ~~decline~~and in full ~~requirement~~requirements results, asreflective ~~a result~~ of ~~warmer~~market and weather ~~in the Northeast~~conditions.

43 41

Impairment Charges in 2011

Impairment charges taken in the prior year-to-date period relate to the write down to fair value of certain wind and oil-fired generation assets deemed to be unrecoverable, resulting in an impairment charge of $51 million which is recorded as a separate line item in NEE's condensed consolidated statements of income for the nine months ended September 30, 2011. The after-tax amount of the impairment charge reduced NEER's results for the nine months ended September 30, 2011 by $31 million. See Note 3 - Nonrecurring Fair Value Measurements.

Interest Expense, Differential Membership Costs and Other

For the three and nine months ended September 30, 2012, interest expense, differential membership costs and other reflects higher costs primarily due to growth of the business, partly offset for the nine-month period by a gain related to an investment previously accounted for under the equity method in which NEER obtained a controlling interest.

Other Factors

InSupplemental ~~addition~~ to the primary drivers of the changes in net income discussed above, the discussion below describes changes in certain line items set forth in NEE's condensed consolidated statements of income as they relate to NEER.

Operating Revenues

Operating revenues for the three months ended ~~September 30~~March 31, ~~2012~~2013 decreased $~~364~~74 million primarily due to:

• ~~the~~higher ~~absence~~unrealized ofmark-to-market ~~revenues~~losses offrom ~~approximately~~non-qualifying hedges ($~~159~~100 million ~~associated~~for ~~with~~the ~~five~~three ~~natural~~months ~~gas-fired~~ended ~~generating~~March ~~plants~~31, ~~sold~~2013 incompared ~~the~~to ~~fourth~~$123 ~~quarter~~million of ~~2011~~gains on such hedges for the comparable period in 2012), and

• ~~unrealized~~lower ~~mark-to-market~~wind ~~losses of $161 million from non-qualifying hedges compared to $32 million of such losses in 2011~~generation, ~~and~~

• unfavorable market conditions primarily in the ERCOT and New England Power Pool (NEPOOL) regions and lower revenues at NextEra Energy Power Marketing, LLC (PMI) (collectively, $156 million),

partly offset by,

• higher revenues offrom ~~$11~~new ~~million~~investments at(approximately ~~NEER's~~$113 ~~contracted nuclear facilities primarily due to favorable contract pricing and the addition of capacity at Point Beach~~million), and

• higher revenues in the New England Power Pool region of $5255 million ~~from~~primarily ~~new~~due ~~investments~~to higher generation at Seabrook due to the absence of a 2012 reduction in capacity.

Operating revenues for the nine months ended September 30, 2012 decreased $181 million primarily due to:

• the absence of revenues of approximately $402 million associated with five natural gas-fired generating plants sold in the fourth quarter of 2011, and

• unfavorable market conditions in the ERCOT and NEPOOL regions and lower revenues at PMI and the existing wind projects (collectively, $98 million),

partly offset by,

• higher revenues from new investments of $147 million,

• higher revenues of $92 million at NEER's contracted nuclear facilities primarily due to the absence of a 2011 planned outage, the addition of capacity at Point Beach and favorable contract pricing, and

• unrealized mark-to-market gains of $62 million from non-qualifying hedges compared to $13 million of losses on such hedges in 2011.

Operating Expenses

Operating expenses for the three months ended ~~September 30~~March 31, ~~2012~~2013 ~~decreased~~increased $~~135~~370 million primarily due to ~~the absence of operating expenses associated with five natural gas-fired generating plants sold in the fourth quarter of 2011.~~:

~~Operating~~• ~~expenses~~an ~~for~~impairment ~~the~~charge ~~nine~~of ~~months~~$300 ~~ended~~million ~~September 30,~~related ~~2012~~to ~~decreased~~the ~~$319~~Spain ~~million~~solar ~~primarily due to:~~projects,

• ~~the~~higher ~~absence of~~ operating expenses associated with ~~five~~new ~~natural~~investments ~~gas-fired~~(approximately ~~generating~~$111 ~~plants sold in the fourth quarter of 2011~~million), and

• ~~the~~higher ~~absence~~fuel costs primarily associated with Seabrook, net of ~~the~~lower ~~$51~~fuel ~~million~~costs ~~impairment~~at ~~charge~~NextEra ~~recorded~~Energy inPower ~~2011.~~Marketing, LLC ($18 million),

partly offset by,


•	higher unrealized mark-to-market gains from non-qualifying hedges ($12 million for the three months ended March 31, 2013 compared to $53 million of losses on such hedges for the comparable period in 2012).

Interest Expense

NEER'’s interest expense for the three ~~and nine~~ months ended ~~September 30~~March 31, ~~2012~~2013 decreased $163 million ~~and $34 million, respectively,~~ primarily due to lower average interest rates, partly offset by higher average debt balances.

~~Gains~~Benefits onassociated ~~Disposal~~with ofdifferential ~~Assets~~ membership interests - net

~~Gains~~Benefits onassociated ~~disposal~~with ofdifferential ~~assets~~ membership interests - net in NEE’'s condensed consolidated statements of income for the three months ended March 31, 2013 and ~~nine~~2012 reflect benefits recognized by NEER as third-party investors received their portion of the economic attributes, including income tax attributes, of the underlying wind project, net of associated costs. For the three months ended ~~September 30~~March 31, 2012, ~~and~~benefits ~~2011~~associated ~~primarily~~with ~~reflect~~differential ~~gains~~membership oninterests ~~sales~~- net also includes $14 million of ~~securities~~benefits ~~held~~where inthe ~~NEER’s~~investors ~~nuclear~~elected ~~decommissioning~~to ~~funds~~receive the convertible ITCs related to the underlying wind project; there were no such benefits for the three months ended March 31, 2013.

Tax Credits and Benefits

PTCs from NEER’s wind projects are reflected in NEER’s earnings. PTCs are recognized as wind energy is generated and sold based on a per kwh rate prescribed in applicable federal and state statutes. A portion of the PTCs have been allocated to investors in connection with the sales of differential membership interests. Also see Summary above and Note 5 for a discussion of PTCs and deferred income tax benefits associated with convertible ITCs and benefits associated with differential membership interests - net above.

~~Wind~~ ~~and Solar Construction~~42

NEER plans to add approximately 1,500 mw of new U.S. wind generation in 2012, including 257 mw added through September 30, 2012, 100 mw of new U.S. wind generation in 2013 and approximately 600 mw of new wind generation in Canada between 2012 and 2015. NEER plans to add approximately 900 mw of new solar generation during the period 2012 through 2016, including 40 mw acquired in the first quarter of 2012.

In its development and operation of U.S. wind generation facilities, NEER depends heavily on the federal PTC, which currently provides an income tax credit for the production of electricity from utility-scale wind turbines for the first ten years of commercial operation. This incentive was created under the Energy Policy Act of 1992 and is set to expire such that it will not apply to new wind projects that first achieve commercial operation after December 31, 2012. Wind and solar project developers also can choose to receive a 30% ITC, which would be in place of the PTC in the case of wind projects. To be eligible, a project must achieve commercial operation before 2013 in the case of wind and before 2017 in the case of solar. For projects placed in service before 2013 in the case of wind or before 2017 in the case of solar, in each case at which construction began before the end of 2011, developers can elect to receive an equivalent cash payment from the U.S. Department of Treasury for the value of the 30% ITC. Any failure to renew the PTC or adopt other legislation conducive to the economic development of wind and solar generation facilities in the U.S. could impede NEER's ability to economically develop wind and solar energy projects in the U.S. and could have a material adverse effect on NEE's business, financial condition, results of operations and prospects. Any renewal or new conducive legislative actions are currently uncertain.

In addition, Spain is considering the imposition of new taxes on energy generation and other changes to the economic framework of renewable energy projects, including the 99.8 mw of solar thermal facilities that NEER is constructing in Spain. If the proposed legislation were enacted into law, management believes that it would result in reduced project returns and the need to contribute additional equity in the project, neither of which is expected to have a significant effect on NEE's business, financial condition, results of operations and prospects. The economic and operational impact to NEER's project will depend on the structure of the final legislation.

Corporate and Other: Results of Operations

Corporate and Other is primarily comprised of ~~interest expense,~~ the operating results of NEET, FPL FiberNet, ~~Lone Star~~ and other business activities, as well as corporate interest income and expenses. Corporate and Other allocates non-utility interest expense and shared service costs to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating non-utility interest expense, the ~~deferred~~liability ~~credit~~ associated with differential membership interests sold by NEER’s subsidiaries is included with debt. Each subsidiary’s income taxes are calculated based on the “"separate return method,”" except that tax benefits that could not be used on a separate return basis, but are used on the consolidated tax return, are recorded by the subsidiary that generated the tax benefits. Any remaining consolidated income tax benefits or expenses are recorded at Corporate and Other. The major components of Corporate and Other'’s results, on an after-tax basis, are as follows:

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012
	(millions)
Interest expense, net of allocations to NEER	$	(2428	)	$	(1921	)	$	~~(68~~	)	$	~~(51~~	)
Interest income	108			98			27			24
Federal and state income tax benefits	426			(16		)	18			40
Other	~~(11~~18		)	48			5			20
Net income (loss)	$	(21	)	$	(7	)	$	(18	)	$	33
Net income	$	24		$	1

45The increase in interest expense, net of allocations to NEER, for the three months ended March 31, 2013 reflects higher average debt balances, partly offset by lower average interest rates. The federal and state income tax benefits reflect consolidating income tax adjustments and include a $13 million income tax benefit recorded as 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 (see Overview - Adjusted Earnings and Note 6). Other includes all other corporate income and expenses, as well as other business activities; the increase for the three months ended March 31, 2013 reflects higher results from Lone Star.

~~The~~Transmission increase in interest expense, net of allocations to NEER, for the three- and nine-month periods reflects a lower allocation of interest costs to NEER, as NEER has obtained additional project-specific financing, and higher debt outstanding, partly offset by lower average interest rates. The federal and state income tax benefits reflect consolidating income tax adjustments and, for the three and nine months ended September 30, 2011, include an approximately $6 million expense associated with the loss on natural gas-fired generating assets held for sale. Also, federal and state income tax benefits for the nine months ended September 30, 2011 include the state deferred income tax benefit of approximately $64 million related to state tax law changes in 2011. Other includes all other corporate income and expenses, as well as other business activities. The decline in other for the three and nine months ended September 30, 2012 is primarily due to a $13 million after-tax impairment charge on an early stage technology investment; the pretax amount ($20 million) of such impairment is reflected in other - net in NEE's condensed consolidated statements of income.Project

In late March 2013, Lone Star ~~Rate~~achieved ~~Case~~commercial operation of approximately 330 miles of new transmission lines and associated transmission facilities in Texas.

In October 2012, the Public Utility Commission of Texas (PUCT) reached a decision in Lone Star's initial rate case proceeding. The PUCT decision was to approve an annual revenue requirement for approximately $50 million of capital investment and O&M expenses. The annual revenue requirement reflects, among other things, an equity ratio of 40% and an allowed regulatory ROE of 9.6%. The remaining capital investment will be included in rates through an interim rate adjustment mechanism. In addition, Lone Star must file a general rate case, with a full 12-month historical test year, within four months of having 12 months of historical operating data, which is expected to occur in the second or third quarter of 2014.

LIQUIDITY AND CAPITAL RESOURCES

NEE and its subsidiaries, including FPL, require funds to support and grow their businesses. These funds are used for, among other things, working capital, capital expenditures, investments in or acquisitions of assets and businesses, payment of maturing debt obligations and, from time to time, redemption or repurchase of outstanding debt or equity securities. It is anticipated that these requirements will be satisfied through a combination of cash flow from operations, short- and long-term borrowings, and the issuance, from time to time, of short- and long-term debt and equity securities, consistent with NEE’s and FPL’s objective of maintaining, on a long-term basis, a capital structure that will support a strong investment grade credit rating. NEE, FPL and NEECH rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows. The inability of NEE, FPL and NEECH to maintain their current credit ratings could affect their ability to raise short- and long-term capital, their cost of capital and the execution of their respective financing strategies, and could require the posting of additional collateral under certain agreements.

46 43

Cash Flows

Sources and uses of NEE's and FPL's cash for the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012 were as follows:

	NEE						FPL
	Nine Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,						Three Months Ended March 31,
	2012			2011			2012			2011
	2013			2012			2013			2012
	(millions)
Sources of cash:
Cash flows from operating activities	$	31,~~157~~082		$	~~3,117~~835		$	~~2,302~~776		$	~~1,748~~558
Long-term borrowings and change in loan proceeds restricted for construction	~~4,438~~735			~~2,321~~611			~~594~~—			~~248~~—
Proceeds from the sale of differential membership interests, net of payments to investors	361			210			—			—
Proceeds from (payments to) investors related to differential membership interests - net	(20		)	303			—			—
Capital contribution from NEE	—			—			~~240~~—			~~310~~40
Cash grants under the Recovery Act	~~105~~170			~~503~~—			—			~~202~~—
Issuances of common stock - net	~~386~~8			3912			—			—
Net increase in short-term debt	~~396~~966			~~946~~582			~~142~~800			~~307~~507
Other sources - net	1523			917			3624			4243
Total sources of cash	82,~~858~~964			72,~~227~~350			31,~~314~~600			21,~~857~~148
Uses of cash:
Capital expenditures and independent power and other investments and nuclear fuel purchases	(6,689		)	(4,317		)	(3,198		)	(2,351		)
Capital expenditures, independent power and other investments and nuclear fuel purchases	(1,867		)	(2,014		)	(821		)	(1,112		)
Retirements of long-term debt	(~~1,321~~923		)	(~~1,688~~134		)	(50427		)	(4525		)
Dividends	(~~752~~279		)	(~~689~~248		)	—(340		)	~~(400~~—		)
Repurchases of common stock	~~(19~~—		)	—(19		)	—			—
Other uses - net	(~~208~~9		)	(~~195~~37		)	(8217		)	(5131		)
Total uses of cash	(83,~~989~~078		)	(62,~~889~~452		)	(31,~~330~~605		)	(21,~~847~~168		)
Net increase (decrease) in cash and cash equivalents	$	(131	)	$	338		$	(16	)	$	10
Net decrease in cash and cash equivalents	$	(114	)	$	(102	)	$	(5	)	$	(20	)

NEE's primary capital requirements are for expanding and enhancing FPL's electric system and generating facilities to continue to provide reliable service to meet customer electricity demands and for funding NEER's investments in independent power and other projects. The following table provides a summary of the major capital investments for the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012.

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2012		2011
	2013		2012
	(millions)
FPL:
Generation:
New	$	~~1,852~~335	$	~~943~~626
Existing	~~428~~117		~~595~~172
Transmission and distribution	~~692~~217		~~566~~233
Nuclear fuel	~~137~~11		~~223~~28
General and other	5720		~~169~~16
Other, primarily the exclusion of AFUDC - equity and change in accrued property additions	32121		~~(145~~37		)
Total	~~3,198~~821		21,~~351~~112
NEER:
Wind	~~1,498~~521		~~637~~177
Solar	~~929~~237		~~317~~375
Nuclear, including nuclear fuel	~~203~~47		~~479~~91
Other	~~460~~180		~~329~~113
Total	~~3,090~~985		~~1,762~~756
Corporate and Other	~~401~~61		~~204~~146
Total capital expenditures and independent power and other investments and nuclear fuel purchases	$	61,~~689~~867	$	42,~~317~~014

47 44

Liquidity

At ~~September~~March 3031, ~~2012~~2013, NEE's total net available liquidity was approximately $5.57 billion, of which FPL's portion was approximately $2.89 billion. The table below provides the components of FPL's and NEECH's net available liquidity at ~~September~~March 3031, ~~2012~~2013:

										Maturity Date
	FPL			NEECH			Total			FPL	NEECH
				(millions)
Bank revolving line of credit facilities(a)	$	3,~~014~~000		$	4,~~569~~600		$	7,~~583~~600		(b)	(b)
Less letters of credit	(3		)	(1,~~207~~008		)	(1,~~210~~011		)
	3,011			3,362			6,373
	2,997			3,592			6,589
Revolving credit facility	235			—			235			2014
Less borrowings	—			—			—
	235			—			235
Letter of credit facility(c)	—			200			200				2015
Letter of credit facilities(c)	—			250			250				2015
Less letters of credit	—			—(67		)	—(67		)
	—			~~200~~183			~~200~~183
Subtotal	3,~~246~~232			3,~~562~~775			67,~~808~~007
Cash and cash equivalents	2035			~~226~~179			~~246~~214
Less commercial paper and short-term debt	(472		)	(1,102		)	(1,574		)
Less commercial paper	(405		)	(1,096		)	(1,501		)
Net available liquidity	$	2,~~794~~862		$	2,~~686~~858		$	5,~~480~~720

_______________________

(a) Provide for the funding of loans up to $7,~~583~~600 million ($3,~~014~~000 million for FPL) and the issuance of letters of credit up to $46,~~083~~600 million ($12,~~564~~500 million for FPL). The entire amount of the credit facilities is available for general corporate purposes, including to provide back-up liquidity for FPL’s and NEECH’s commercial paper programs and other short-term borrowings and to provide additional liquidity in the event of a loss to the companies’ or their subsidiaries’ operating facilities (including, in the case of FPL, a transmission and distribution property loss). FPL’s bank revolving line of credit facilities are also available to support the purchase of $633 million of pollution control, solid waste disposal and industrial development revenue bonds (tax exempt bonds) in the event they are tendered by individual bond holders and not remarketed prior to maturity.

(b) ~~Approximately~~ $~~1,114~~500 million of FPL's bank revolving line of credit facilities expire on May 4, 2013. FPL expects to refinance this facility on May 3, 2013 with a bank revolving line of credit facility having similar terms and conditions which will expire in 2016. $~~1,469~~500 million of NEECH's bank revolving line of credit facilities expire in December 2013. ~~The~~Essentially ~~remaining~~all ~~portion~~ of ~~bank~~the ~~revolving~~remaining ~~line~~facilities ofat ~~credit~~each ~~facilities~~of ~~for~~ FPL and NEECH ~~expires~~expire in ~~2017~~2018.


(c)	Only available for the issuance of letters of credit.

Additionally, at ~~September~~March 3031, ~~2012~~2013, certain subsidiaries of NEE had credit or loan facilities with available liquidity as ~~follows:~~set forth in the table below. In order for the applicable borrower to borrow or to have letters of credit issued under the terms of the agreements listed below, among other things, NEE's ratio of funded debt to total capitalization that is specified in the agreement may not be exceeded. These agreements also generally contain covenants and default and related acceleration provisions relating to, among other things, failure of NEE to maintain a ratio of funded debt to total capitalization at required levels. Some of the payment obligations of the borrowers under the agreements listed below ultimately are guaranteed by NEE.

	OriginalAmount		~~Amount RemainingAvailable atSeptember 30, 2012~~	AmountRemainingAvailable atMarch 31, 2013	~~Rate~~	Rate	~~MaturityDate~~	MaturityDate	~~RelatedProject Use~~	RelatedProject Use
	(millions)
NEECH and NEER:
NEECH and certain subsidiaries of NEER:
Canadian bank revolving credit agreements(a)(b)	C$300		$2		Variable		2013		Canadian renewable generating assets
Canadian revolving credit agreements(a)	C$650			$161		Variable		Various		Canadian renewable generating assets
Revolving loan agreement(a)	€170		$92		Variable		2014		Construction of Spain solar project
Revolving loan agreement	€170			$58		Variable		2014		Construction of Spain solar projects
NEER:
Certain subsidiaries of NEER:
Senior secured limited-recourse loan agreement(c)(d)	€589		$233		Variable		2030		Construction of Spain solar project
Senior secured limited-recourse loan agreement(b)	€589			$128		Variable		2030		Construction of Spain solar projects
Term loan facility(c)(d)	$150		$150		Variable		2019		Construction of Genesis solar project
Term loan facility	$150	150		$150		Variable		2019		Construction of Genesis solar project
Lone Star:
Senior secured limited-recourse loan agreement(c)(e)	$387		$129		Variable		2016		Construction of Lone Star transmission line and substations

~~_____________________~~______________________

(a) ~~Includes,~~Available asfor ageneral ~~precondition~~corporate purposes; the current intent is to ~~borrowing~~use these facilities for the purchase, development, construction, and/or ~~issuing~~operation ~~letters~~of Canadian renewable generating assets. Consist of ~~credit,~~agreements aswith ~~well~~original asamounts ~~default~~of ~~and~~C$150 ~~related~~million ~~payment~~with ~~acceleration~~a maturity date of 2013, ~~provisions~~C$400 ~~that~~million ~~require~~with ~~NEE's~~a ~~ratio~~maturity date of ~~funded~~2014 ~~debt~~and toC$100 ~~total~~million ~~capitalization~~with toa ~~not~~maturity ~~exceed~~date aof ~~stated~~2016 ~~ratio.~~with ~~Payment~~approximately ~~obligations~~$1 ~~are~~million, ~~guaranteed~~$62 bymillion ~~NEE~~and ~~pursuant~~$98 tomillion, ~~the~~respectively, ~~1998~~remaining ~~guarantee~~available ~~agreement~~under ~~with~~these ~~NEECH~~agreements at March 31, 2013.

(b) ~~Available~~See ~~for~~Note ~~general~~10 ~~corporate~~- ~~purposes;~~Commitments ~~the~~for ~~current~~a ~~intent~~discussion isof ~~for~~the iteffect tothat bea ~~used~~change ~~for~~in ~~the~~Spanish ~~purchase,~~law ~~development,~~has ~~construction,~~had ~~and/or~~on ~~operation~~the ofsenior ~~Canadian~~secured ~~renewable~~limited-recourse ~~generating~~loan ~~assets~~agreement.

~~(c)~~ Includes default and related payment acceleration provisions for, among other things, failure to comply with certain covenants, including requirements that construction of the project must be completed by a certain date.45

(d) Borrowings are preconditioned on equity being contributed by the project's parent, and are drawn on a pro-rata basis with those equity contributions. The total equity funding commitment and, until certain conditions or obligations related to the project are met, certain obligations, including all or a portion of the debt payment obligations, are guaranteed by NEECH, which guarantee obligations are in turn guaranteed by NEE. The related NEECH guarantee contains default and acceleration provisions relating to, among other things, NEE's ratio of funded debt to total capitalization exceeding a specified ratio.

(e) Borrowings are preconditioned on equity being contributed by Lone Star's parent, and are drawn on a pro-rata basis with those equity contributions. The total equity funding commitment has been guaranteed by NEECH, which guarantee obligations are in turn guaranteed by NEE. The related NEECH guarantee contains default provisions and related provisions for acceleration of the unfunded equity commitment relating to, among other things, NEE's ratio of funded debt to total capitalization exceeding a specified ratio.

In October 2012, an indirect wholly-owned subsidiary of NEER (the borrower) and NEECH entered into a Canadian $150 million principal amount variable rate, bank revolving loan agreement maturing in October 2014, which amended an existing loan agreement that was scheduled to mature in March 2013. The loan agreement provides funding for the borrower's general corporate purposes, including funding loans to various affiliates for the purchase, development, construction, and/or operation of Canadian renewable generating assets. NEECH has guaranteed the repayment of all borrowings and interest under the revolving loan agreement, which guarantee obligation is in turn guaranteed by NEE pursuant to a 1998 guarantee agreement with NEECH. As a precondition to the borrower's ability to borrow under the terms of the revolving loan agreement, NEE must, among other things, maintain a ratio of funded debt to total capitalization that does not exceed a stated ratio. The revolving loan agreement also contains default and related acceleration provisions for, among other things, a failure by NEE to satisfy the ratio requirement. At October 25, 2012, approximately Canadian $119 million (approximately $121 million) of the funding commitment under the revolving loan agreement remains available.

An indirect wholly-owned subsidiary of NEER has experienced lower operating cash flows, primarily due to low energy prices in the Northeast, and is not expected to make an interest payment due in January 2013 on certain debt associated with a hydro project. If the related debt agreement is not restructured and the interest payment is not made timely, the subsidiary could be in default and potentially face bankruptcy. This potential default is not expected to have a material adverse effect on NEE's future financial results or operations.

Dodd-Frank Act

NEE and FPL continue to monitor the development of rules related to the Dodd-Frank Act and are implementing those rules that affect their businesses. A number of rules have already been finalized and have become or will become effective over the next 12 months. In July 2012, the U.S. Commodity Futures Trading Commission voted to finalize a rule related to the definition of a swap. The effective date of this rule was October 12, 2012, resulting in formal effective dates for a number of other rules that are dependent on the definition of a swap over the next 12 months, including the reporting and recordkeeping obligations applicable to derivative end users such as NEE and FPL. The implementation of these rules is not expected to have a material effect on NEE and FPL, however, it is expected to add cost and compliance risk related to hedging activities. The rules related to collateral requirements have not been finalized. If those rules, when finalized, require NEE and FPL to post significant amounts of cash collateral with respect to swap transactions, NEE's and FPL's liquidity could be materially affected.

NEE and FPL cannot predict the impact these new rules will have on their ability to hedge their commodity and interest rate risks or on the OTC derivatives market as a whole, but management believes that they could potentially have a material effect on NEE's and FPL's risk exposure and financial results, as well as reduce market liquidity and further increase the cost of hedging activities.

Capital Support

Letters of Credit, Surety Bonds and Guarantees

NEE and FPL obtain letters of credit and surety bonds and issue guarantees to facilitate commercial transactions with third parties and financings. Letters of credit, surety bonds and guarantees support, among other things, the buying and selling of wholesale energy commodities, debt and related reserves, ~~nuclear activities,~~ capital expenditures for NEER's wind and solar development, nuclear activities and other contractual agreements. Substantially all of NEE's and FPL's guarantee arrangements are on behalf of their consolidated subsidiaries for their related payment obligations.

In addition, as part of contract negotiations in the normal course of business, NEE and FPL may agree to make payments to compensate or indemnify other parties for possible future unfavorable financial consequences resulting from specified events. The specified events may include, but are not limited to, an adverse judgment in a lawsuit, the imposition of additional taxes due to a change in tax law or interpretations of the tax law or the non-receipt of renewable tax credits or proceeds from cash grants under the Recovery Act. NEE and FPL are unable to develop an estimate of the maximum potential amount of future payments under some of these contracts because events that would obligate them have not yet occurred or, if any such event has occurred, they have not been notified of its occurrence.

In addition, NEE has guaranteed certain payment obligations of NEECH, including most of its debt and all of its debentures and commercial paper issuances, as well as most of its payment guarantees and indemnifications, and NEECH has guaranteed certain debt and other obligations of NEER and its subsidiaries.

At ~~September~~March 3031, ~~2012~~2013, NEE had approximately $1.32 billion of standby letters of credit ($3 million for FPL), approximately $~~170~~168 million of surety bonds ($5453 million for FPL) and approximately $1311.65 billion notional amount of guarantees and indemnifications ($22 million for FPL), of which approximately $87.4 billion ~~($10~~of ~~million for FPL)~~ letters of credit, guarantees and indemnifications ~~have expiration dates within the next five years. An aggregate of approximately $1.2 billion~~ ($310 million for FPL) ofhave ~~the~~expiration ~~standby~~dates ~~letters~~within ofthe ~~credit~~next atfive ~~September 30, 2012 were issued under FPL’s and NEECH’s credit facilities~~years.

Each of NEE and FPL believe it is unlikely that it would incur any liabilities associated with these letters of credit, surety bonds, guarantees and indemnifications. Accordingly, at ~~September~~March 3031, ~~2012~~2013, NEE and FPL did not have any liabilities recorded for these letters of credit, surety bonds, guarantees and indemnifications.

Shelf Registration

In August 2012, NEE, NEECH and FPL filed a shelf registration statement with the SEC for an unspecified amount of securities which became effective upon filing. The amount of securities issuable by the companies is established from time to time by their respective boards of directors. As of October 25, 2012, securities that may be issued under the registration statement include, depending on the registrant, senior debt securities, subordinated debt securities, junior subordinated debentures, first mortgage bonds, common stock, preferred stock, stock purchase contracts, stock purchase units, warrants and guarantees related to certain of those securities. As of October 25, 2012, NEE and NEECH had approximately $2.2 billion (issuable by either or both of them up to such aggregate amount) of board-authorized available capacity, and FPL had $150 million of board-authorized available capacity.

Energy Marketing and Trading and Market Risk Sensitivity

NEE and FPL are exposed to risks associated with adverse changes in commodity prices, interest rates, equity prices and currency exchange rates. Financial instruments and positions affecting the financial statements of NEE and FPL described below are held primarily for purposes other than trading. Market risk is measured as the potential loss in fair value resulting from hypothetical reasonably possible changes in commodity prices, interest rates, equity prices or currency exchange rates over the next year. Management has established risk management policies to monitor and manage such market risks, as well as credit risks.

Commodity Price Risk

NEE and FPL use derivative instruments (primarily swaps, options, futures and forwards) to manage the commodity price risk inherent in the purchase and sale of fuel and electricity. In addition, NEE, through NEER, uses derivatives to optimize the value of power generation assets and engages in power and gas marketing and trading activities to take advantage of expected future favorable price movements. See Note 2.

~~The~~ ~~changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three and nine months ended September 30, 2012 were as follows:~~46

			Hedges on Owned Assets
	Trading		Non-Qualifying			OCI			FPL CostRecoveryClauses			NEE Total
	(millions)
Three months ended September 30, 2012
Fair value of contracts outstanding at June 30, 2012	$	113	$	899		$	4		$	(302	)	$	714
Reclassification to realized at settlement of contracts	24		27			(2		)	185			234
Inception value of new contracts	6		—			—			—			6
Net option premium purchases (issuances)	13		—			—			—			13
Changes in fair value excluding reclassification to realized	33		(254		)	—			90			(131		)
Fair value of contracts outstanding at September 30, 2012	189		672			2			(27		)	836
Net margin cash collateral paid (received)												(120		)
Total mark-to-market energy contract net assets (liabilities) at September 30, 2012	$	189	$	672		$	2		$	(27	)	$	716

The changes in the fair value of NEE's consolidated subsidiaries' energy contract derivative instruments for the three months ended March 31, 2013 were as follows:



				Hedges on Owned Assets
	Trading			Non- Qualifying			FPL Cost Recovery Clauses			NEE Total
	(millions)
Fair value of contracts outstanding at December 31, 2012	$	261		$	674		$	(15	)	$	920
Reclassification to realized at settlement of contracts	(3		)	(10		)	15			2
Inception value of new contracts	3			—			—			3
Net option premium purchases (issuances)	(6		)	(12		)	—			(18		)
Changes in fair value excluding reclassification to realized	39			(78		)	144			105
Fair value of contracts outstanding at March 31, 2013	294			574			144			1,012
Net margin cash collateral paid (received)										(120		)
Total mark-to-market energy contract net assets (liabilities) at March 31, 2013	$	294		$	574		$	144		$	892

Hedges on Owned Assets

Trading

Non-Qualifying

OCI

FPL CostRecoveryClauses

NEE Total

(millions)

Nine months ended September 30, 2012

Fair value of contracts outstanding at December 31, 2011

Filing Compare · FLORIDA POWER & LIGHT CO