DEFINITIONS

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



Term	Meaning
AFUDC	allowance for funds used during construction
AFUDC - ~~debt~~	~~debt component of allowance for funds used during construction~~
~~AFUDC -~~ equity	equity component of ~~allowance for funds used during construction~~AFUDC
AOCI	accumulated other comprehensive income
Bcf	billion cubic feet
capacity clause	capacity cost recovery clause, as established by the FPSC
~~CFTC~~	~~U.S. Commodity Futures Trading Commission~~
CO₂	carbon dioxide
DOE	U.S. Department of Energy
Duane Arnold	Duane Arnold Energy Center
environmental clause	environmental cost recovery clause
EPA	U.S. Environmental Protection Agency
ERCOT	Electric Reliability Council of Texas
FERC	U.S. Federal Energy Regulatory Commission
Florida Southeast Connection	Florida Southeast Connection, LLC, a ~~wholly-owned NEECH~~wholly owned NEER subsidiary
FPL	Florida Power & Light Company
~~FPL FiberNet~~	~~fiber-optic telecommunications business~~
FPSC	Florida Public Service Commission
fuel clause	fuel and purchased power cost recovery clause, as established by the FPSC
GAAP	generally accepted accounting principles in the U.S.
GHG	greenhouse gas(es)
IPO	initial public offering
ISO	independent system operator
ITC	investment tax credit
kW	kilowatt
kWh	kilowatt-hour(s)
~~Lone Star~~	~~Lone Star Transmission, LLC~~
Management's Discussion	Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
MMBtu	One million British thermal units
mortgage	mortgage and deed of trust dated as of January 1, 1944, from FPL to Deutsche Bank Trust Company Americas, as supplemented and amended
MW	megawatt(s)
MWh	megawatt-hour(s)
NEE	NextEra Energy, Inc.
NEECH	NextEra Energy Capital Holdings, Inc.
NEER	NextEra Energy Resources, LLC
NEET	NextEra Energy Transmission, LLC
NEP	NextEra Energy Partners, LP
NEP OpCo	NextEra Energy Operating Partners, LP
NERC	North American Electric Reliability Corporation
~~NHT~~	~~New Hampshire Transmission, LLC~~
Note __	Note __ to consolidated financial statements
NOx	nitrogen oxide
NRC	U.S. Nuclear Regulatory Commission
NYISO	New York ISO
O&M expenses	other operations and maintenance expenses in the consolidated statements of income
OCI	other comprehensive income
OTC	over-the-counter
OTTI	other than temporary impairment
PJM	PJM Interconnection, L.L.C.
PMI	NextEra Energy ~~Power~~ Marketing, LLC
Point Beach	Point Beach Nuclear Power Plant
PTC	production tax credit
PUCT	Public Utility Commission of Texas
PURPA	Public Utility Regulatory Policies Act of 1978, as amended
PV	photovoltaic
Recovery Act	The American Recovery and Reinvestment Act of 2009, as amended
regulatory ROE	return on common equity as determined for regulatory purposes
RFP	request for proposal
ROE	return on common equity
RPS	renewable portfolio standards
RTO	regional transmission organization
Sabal Trail	Sabal Trail Transmission, LLC, an entity in which a ~~NEECH~~NEER subsidiary has a ~~33%~~42.5% ownership interest
Seabrook	Seabrook Station
SEC	U.S. Securities and Exchange Commission
SO₂	sulfur dioxide
U.S.	United States of America
~~WCEC~~	~~FPL's West County Energy Center in western Palm Beach County, Florida~~

NEE, FPL, NEECH and NEER each has subsidiaries and affiliates with names that may include NextEra Energy, FPL, NextEra Energy Resources, NextEra, FPL Group, FPL Group Capital, FPL Energy, FPLE, NEP 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.

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TABLE OF CONTENTS



		Page No.
Definitions		2
Forward-Looking Statements		3
	PART I

Item 1.	Business	4
Item 1A.	Risk Factors	2522
Item 1B.	Unresolved Staff Comments	3634
Item 2.	Properties	3734
Item 3.	Legal Proceedings	4134
Item 4.	Mine Safety Disclosures	4134
	PART II

Item 5.	Market for Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	4135
Item 6.	Selected Financial Data	4236
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	4337
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	6860
Item 8.	Financial Statements and Supplementary Data	6961
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	~~123~~117
Item 9A.	Controls and Procedures	~~123~~117
Item 9B.	Other Information	~~123~~117
	PART III

Item 10.	Directors, Executive Officers and Corporate Governance	~~124~~118
Item 11.	Executive Compensation	~~124~~118
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~124~~118
Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~124~~118
Item 14.	Principal Accounting Fees and Services	~~125~~119
	PART IV

Item 15.	Exhibits, Financial Statement Schedules	~~126~~120
Item 16.	Form 10-K Summary	127

Signatures		~~134~~128

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 may result, are expected to, will continue, is anticipated, ~~aim,~~ believe, will, could, should, would, estimated, may, plan, potential, future, projection, goals, target, outlook, predict and intend or words of similar meaning) are not statements of historical facts and may be forward looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, important factors included in Part I, Item 1A. Risk 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 NEE's and/or FPL's 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-K, in presentations, on their respective websites, in response to questions or otherwise.

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.

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PART I

Item 1. Business

OVERVIEW

~~NextEra Energy, Inc. (hereafter, NEE), with approximately 44,900 MW of generating capacity,~~NEE is one of the largest electric power companies in North America ~~with electric generating facilities located in 27 states~~and, through its subsidiary NEER and its affiliated entities, is the largest generator of renewable energy from the wind and sun in the ~~U.S. and 4 provinces in Canada, and employing approximately 13,800 people as of December 31, 2014.~~world based on 2016 MWh produced. NEE ~~provides retail and wholesale electric services to over 5 million customers and~~also owns and/or operates generation, transmission and distribution facilities to support its ~~services. It also purchases electric power for resale~~services to ~~its~~retail and wholesale customers, and has investments in gas infrastructure assets. NEE also provides risk management services related to power and gas consumption related to its own generation assets and for a limited number of wholesale customers in selected markets. NEE is the largest generator in North America of renewable energy from the wind and sun. NEE owns and operates approximately 17% of the installed base of U.S. wind power production capacity and owns and/or operates approximately 11% of the installed base of U.S. utility-scale solar power production capacity as of December 31, 2014. NEE also owns and operates one of the largest fleets of nuclear power stations in the U.S., with eight reactors at five sites located in four states, representing approximately 6% of U.S. nuclear power electric generating capacity as of December 31, 2014. NEE's business strategy has emphasized the development, acquisition and operation of renewable, nuclear and natural gas-fired generation facilities in response to long-term federal policy trends supportive of zero and low air emissions sources of power. As of December 31, 2016, NEE's business included the following:

approximately 45,900 MW of generating capacity with electric generation ~~fleet has significantly lower rates of emissions of CO~~₂facilities located in 30 states in the U.S., SO₂4 provinces in Canada and ~~NOx than the average rates~~in Spain;

approximately 16% of the installed base of U.S. ~~electric~~wind power ~~industry with~~ production capacity;

approximately ~~97% of its 2014 generation, measured by MWh produced, coming from renewable, nuclear and natural gas-fired facilities. Certain environmental attributes~~11% of the ~~wholesale business'~~installed base of U.S. universal solar power production capacity;

one of the largest fleets of nuclear power stations in the U.S., with 8 reactors at 5 sites located in 4 states, representing approximately 6% of U.S. nuclear power electric generating ~~facilities, such as renewable energy credits (RECs), emissions reductions, offsets, allowances~~capacity;


•	a generation fleet with significantly lower rates of emissions of CO₂, SO₂ and NO_x than the average rates of the U.S. electric power industry with approximately 98% of its 2016 generation, measured by MWh produced, coming from renewable, nuclear and natural gas-fired facilities;

approximately 800 substations and 76,700 miles of transmission and distribution lines;

more than 5.4 million retail and wholesale electric customer accounts; and

approximately 14,700 people employed, primarily in the ~~avoided emission of GHG pollutants, have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights and ownership of the environmental attributes.~~U.S.

NEE was incorporated in 1984 under the laws of Florida and conducts its operations principally through two ~~wholly-owned~~wholly owned subsidiaries, ~~Florida Power & Light Company (hereafter, FPL)~~FPL and ~~NextEra Energy Resources, LLC (hereafter, NEER). NextEra Energy Capital Holdings, Inc. (hereafter, NEECH),~~NEER. NEECH, another ~~wholly-owned~~wholly owned subsidiary of NEE, owns and provides funding for NEER's and NEE's operating subsidiaries, other than FPL and its subsidiaries. ~~NEE's two principal businesses also constitute NEE's reportable segments for financial reporting purposes.~~ During 2014, NEE formed NEP to acquire, manage and own contracted clean energy projects with stable, long-term cash flows. See ~~II.~~ NEER section below for further discussion of NEP. ~~NEE's and NEER's generating capacity~~When discussed in this combined Form 10-K, NEE's and NEER's generating capacity as of December 31, 2016 includes approximately ~~199~~971 MW associated with noncontrolling interests related to ~~NEP as of December 31, 2014. See Item 2. Properties.~~NEP.

NEE's two principal businesses, FPL ~~is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution~~ and sale of electric energy in Florida. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S. based on retail MWh sales. FPL is vertically integrated, with approximately 25,100 MW of generating capacity as of December 31, 2014. FPL's investments in its infrastructure since 2001, such as modernizing less-efficient fossil generating plants to produce more energy with less fuel and fewer air emissions, increasing generating capacity at its existing nuclear units and upgrading its transmission and distribution systems to deliver service reliability that is the best of the Florida investor-owned utilities, have provided significant benefits to FPL's customers, all while providing residential and commercial bills that were among the lowest in Florida and below the national average based on a rate per kWh as of July 2014 (the latest date for which this data is available). With approximately 95% of its power generation coming from natural gas, nuclear and solar, FPL is also one of the cleanest electric utilities in the nation. Based on 2014 information, FPL's emissions rates for CO₂~~, SO~~₂ ~~and NOx were 38%, 95% and 73% lower, respectively, than the average rates of the U.S. electric power industry.~~

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NEER, with approximately 19,800 MW of generating capacity at December 31, 2014, is one of the largest wholesale generators of electric power in the U.S., with approximately 19,000 MW of generating capacity across 25 states, and with over 700 MW in 4 Canadian provinces. NEER produces the majority of its electricity from clean and renewable sources, including wind and solar. NEER, also provides full energy and capacity requirements services, engages in power and gas marketing and trading activities, participates in natural gas, natural gas liquids and oil production and pipeline infrastructure development and owns a retail electricity provider.

NEECH's other business activities are primarily conducted through NEET and FPL FiberNet. NEET conducts its operations principally through two wholly-owned subsidiaries, Lone Star, a rate-regulated transmission service provider in Texas, and NHT, a rate-regulated transmission owner in New Hampshire. FPL FiberNet delivers wholesale and enterprise telecommunications services in Florida, Texas andconstitute NEE's reportable segments for financial reporting purposes. See Note 14 for certain ~~areas of the South Central U.S. In addition, certain subsidiaries of NEECH are pursuing approvals to move forward with three natural gas pipeline projects.~~

financial information about these segments. NEE seeks to create value in its two principal businesses by meeting its customers' needs more economically and more reliably than its competitors, as described in more detail in the following sections. NEE's strategy has resulted in profitable growth over sustained periods at both FPL and NEER. Management seeks to grow each business in a manner consistent with the varying opportunities ~~open~~available to it; however, management believes that the diversification and balance represented by FPL and NEER is a valuable characteristic of the enterprise and recognizes that each business contributes to NEE's credit profile in different ways. FPL and NEER, as well as other NEE subsidiaries, share common support functions with the objective of lowering costs and creating efficiencies for their businesses. ~~During 2013,~~ NEE and its subsidiaries ~~commenced an enterprise-wide initiative~~continue to develop and implement enterprise wide initiatives focused mainly on improving productivity and reducing O&M expenses (cost savings ~~initiative), and management expects to continue those efforts over the near term.~~initiatives).

In ~~December 2014,~~July 2016, NEE ~~and Hawaiian Electric Industries, Inc. (HEI)~~ announced a proposed merger ~~pursuant to~~(EFH merger) under which ~~Hawaiian Electric Company, Inc., HEI's wholly-owned electric utility subsidiary, will become~~ a ~~wholly-owned~~newly formed subsidiary of ~~NEE. The companies are working to complete the merger by the end of 2015. However, completion~~NEE will acquire 100% of the ~~merger~~equity of reorganized Energy Future Holdings Corp. (reorganized EFH) and certain of its direct and indirect subsidiaries, including its indirect ownership of approximately 80% of the ~~actual closing date depend upon the satisfaction~~outstanding equity interests of ~~a number of conditions, including approval by HEI's shareholders and the receipt of required regulatory approvals. See Note 1 - Proposed Merger for further discussion.~~Oncor Electric Delivery Company LLC

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~~NEE'S OPERATING SUBSIDIARIES~~(Oncor), a regulated electric distribution and transmission business that operates the largest distribution and transmission system in Texas. The merger agreement (EFH merger agreement) provides that the consideration for the transaction funded by NEE will be $9.796 billion, which will be paid almost all in cash, with the balance in shares of NEE common stock. The amount of consideration will be subject to adjustment as provided in the EFH merger agreement. In late October 2016, additional agreements were entered into with other parties that, when combined with the EFH merger agreement, if completed, would result in NEE owning 100% of Oncor. The aggregate consideration to be paid by NEE under these additional agreements will be approximately $2.4 billion and will be subject to adjustment as provided in the additional agreements. On February 17, 2017, the U.S. Bankruptcy Court for the District of Delaware confirmed Energy Future Holdings Corp.'s Eighth Amended Joint Plan of Reorganization. Completion and actual closing dates of the EFH merger and the other Oncor-related transactions remain subject to, among other things, approval by the PUCT and receipt of a supplemental private letter ruling from the Internal Revenue Service (IRS). The PUCT hearings regarding the merger transactions were conducted the week of February 20, 2017. NEE, EFH and the other parties to the EFH merger agreement, and the parties to the other Oncor-related transaction agreements, have certain specified termination rights. NEE expects the EFH merger and the other Oncor-related transactions to be completed in the first half of 2017. See Note 7 - Pending Oncor-Related Transactions.

I. In January 2017, a subsidiary of NEE completed the sale of its fiber-optic telecommunications business (FPL FiberNet) for net cash proceeds of approximately $1.1 billion, after repayment of $370 million of related long-term debt. See Note 1 - Assets and Liabilities Associated with Assets Held for Sale.

FPL

FPL was incorporated under the laws of Florida in 1925 and is a ~~wholly-owned subsidiary of NEE. FPL is a~~ rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the U.S. based on retail MWh sales. At December 31, 2016, FPL ~~with 25,092~~had approximately 26,000 MW of net generating capacity, at74,800 miles of transmission and distribution lines and 600 substations. FPL provides service to its customers through an integrated transmission and distribution system that links its generation facilities to its customers. At December 31, ~~2014, supplies electric~~2016, FPL served approximately 10 million people through approximately 4.9 million customer accounts. FPL's service ~~throughout~~territory, which covers most of the east and lower west coasts of Florida, ~~serving more than 9 million people through approximately 4.7million customer accounts. At December 31, 2014, FPL's service territory~~ and plant locations ~~are~~as of December 31, 2016 were as follows (see ~~Item 2. Properties - Generating Facilities)~~Sources of Generation below):

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CUSTOMERS AND REVENUE

FPL's primary source of operating revenues is from its retail customer base; it also serves a limited number of wholesale customers within Florida. The percentage of FPL's operating revenues and customer accountsby customer class were as follows:

For both retail and wholesale customers, the prices (or rates) that FPL may charge are approved by regulatory bodies, by the FPSC in the case of retail customers, and by the FERC in the case of wholesale customers. In general, under U.S. and Florida law, regulated rates are intended to cover the cost of providing service, including a reasonable rate of return on invested capital. Since the regulatory bodies have authority to determine the relevant cost of providing service and the appropriate rate of return on capital employed, there can be no guarantee that FPL will be able to earn any particular rate of return or recover all of its costs through regulated rates. See FPL Regulation below.

FPL seeks to maintain attractive rates for its customers. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from the cost savings initiatives discussed above. A common benchmark used in the electric power industry for comparing rates across companies is the price of 1,000 kWh of consumption per month for a residential customer. FPL's 2016 average bill for 1,000 kWh of monthly residential usage was the lowest among reporting electric utilities within Florida and well below the July 2016 national average (the latest date for which this data is available) as indicated below:

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FRANCHISE AGREEMENTS AND COMPETITION

FPL's service to its retail customers is provided primarily under franchise agreements negotiated with municipalities or counties. Alternatively, municipalities and counties may form their own utility companies to provide service to their residents. In a very few cases, an FPL franchise agreement provides the respective municipality the right to buy the electrical assets serving local residents at the end of the agreement. However, duringDuring the term of a franchise agreement, which is typically 30 years, the municipality or county agrees not to form its own utility, and FPL has the right to offer electric service to residents. FPL currently holds ~~177~~ 180franchise agreements with various municipalities and counties in Florida with varying expiration dates through ~~2044. One of these franchise agreements expires in 2015, three expire in 2016 and 173 expire during the period 2017 through 2044.~~2046. These franchise agreements cover approximately ~~86%~~88% of FPL's retail customer base in Florida. ~~Negotiations are ongoing to renew the franchise agreements that expire in 2015 and 2016. FPL considers its franchises to be adequate for the conduct of its business.~~ FPL also provides service to 12 13other municipalities and to22 21 unincorporated areas within its service area without franchise agreements pursuant to the general obligation to serve as a public utility. FPL relies upon Florida law for access to public rights of way.

Because any customer may elect to provide his/her own electric services, FPL effectively must compete for an individual customer's business. As a practical matter, few customers provide their own service at the present time since FPL's cost of service is ~~substantially~~ lower than the cost of self-generation for the vast majority of customers. Changing technology, economic conditions and other factors could alter the favorable relative cost position that FPL currently enjoys; however, FPL seeks as a matter of strategy to ensure that it delivers superior value, in the form of high reliability, low bills and excellent customer service.

In addition to self-generation by residential, commercial and industrial customers, FPL also faces competition from other suppliers of electrical energy to wholesale customers and from alternative energy sources. In each of ~~2014, 2013~~2016, 2015 and ~~2012,~~2014, operating revenues from wholesale and industrial customers combined represented approximately ~~5%, 3%and 3%, respectively,~~five percent of FPL's total operating revenues.

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~~The FPSC promotes cost competitiveness in~~For the building of new steam and solar generating capacity of 75 MW or greater, ~~by requiring~~the FPSC requires investor-owned electric utilities, including FPL, to issue an RFP except when the FPSC determines that an exception from the RFP process is in the public interest. The RFP process allows independent power producers and others to bid to supply the new generating capacity. If a bidder has the most cost-effective alternative, meets other criteria such as financial viability and demonstrates adequate expertise and experience in building and/or operating generating capacity of the type proposed, the investor-owned electric utility would seek to negotiate a purchased power agreement with the selected bidder and request that the FPSC approve the terms of the purchased power agreement and, if appropriate, provide the required authorization for the construction of the bidder's generating capacity. ~~In January 2015, FPL announced plans to issue an RFP during the first quarter of 2015 for a new natural gas-fired combined-cycle unit in Okeechobee County, Florida.~~

~~New nuclear power plants are exempt from the RFP requirement. See FPL Sources of Generation - Nuclear Operations below.~~

~~CUSTOMERS AND REVENUE~~

FPL's primary source of operating revenues is from its retail customer base; it also serves a limited number of wholesale customers within Florida. FPL revenues from wholesale sales increased in 2014 primarily due to an increase in contracted load served under existing and new wholesale contracts. Beginning in 2013, operating revenues include gains associated with an incentive mechanism allowed under the 2012 rate agreement (see FPL Regulation - FPL Rate Regulation - Base Rates - Rates Effective January 2013 - December 2016); such gains are included in other in the chart below. The percentage of FPL's operating revenues and customer accounts~~by customer class were as follows:~~

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FPL seeks to maintain attractive rates for its customers. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low cost position. The ideas generated from the cost savings initiative discussed above are expected to keep FPL's O&M expenses recovered through base rates flat through 2016 as compared to 2012. A common benchmark used in the electric power industry for comparing rates across companies is the price of 1,000 kWh of consumption per month for a residential customer. FPL's 2014 average bill for 1,000 kWh of monthly residential usage was the lowest among reporting electric utilities within Florida as indicated below:

~~POWER DELIVERY~~

FPL provides service to its customers through an integrated transmission and distribution system that links its generation facilities to its customers. FPL also maintains interconnection facilities with neighboring utilities and non-utility generators inside its service territory, enabling it to buy and sell wholesale electricity and to enhance the reliability of its own network and support the reliability of neighboring networks. FPL's transmission system carries high voltage electricity from its generating facilities to substations where the electricity is stepped down to lower voltage levels and is sent through the distribution system to its customers.

A key element of FPL's strategy is to provide highly reliable service to its customers. The transmission and distribution system is susceptible to interruptions or outages from a wide variety of sources including weather, animal and vegetation interference, traffic accidents, equipment failure and many others, and FPL seeks to reduce or eliminate outages where economically practical and to restore service rapidly when outages occur. A common industry benchmark for transmission and distribution system reliability is the system average interruption duration index (SAIDI), which represents the number of minutes the average customer is without power during a time period. For the five years 2009 - 2013, FPL's average annual SAIDI was the best of the investor-owned utilities in Florida. FPL is accelerating its existing storm hardening and reliability program, to continue strengthening its infrastructure against tropical storms and hurricanes. Also, as part of its commitment to building a smarter, more reliable and efficient electric infrastructure, FPL has installed 4.8 million smart meters and 11,500 intelligent devices throughout the electric grid.

~~FPL SYSTEM CAPABILITY AND LOAD~~

At December 31, 2014, FPL's resources for serving load consisted of 27,055 MW, of which 25,092 MW were from FPL-owned facilities (see Item 2. Properties - Generating Facilities) and 1,963 MW were available through purchased power agreements (see FPL Sources of Generation - Purchased Power below). FPL customer usage and operating revenues are typically higher during the summer months, largely due to the prevalent use of air conditioning in FPL's service territory. Occasionally, unusually cold temperatures during the winter months result in significant increases in electricity usage for short periods of time. The highest peak load FPL has served to date was 24,346 MW, which occurred on January 11, 2010. FPL had adequate resources available at the time of this peak to meet customer demand.

FPL's projected reserve margin for the summer of 2015 is approximately 27%. This reserve margin is expected to be achieved through the combination of available output from FPL's active generating units, purchased power agreements and the capability to reduce peak demand through the implementation of demand side management programs, including load management which was estimated at December 31, 2014 to be capable of reducing demand by approximately 1,800 MW, and energy efficiency and conservation programs. See FPL Sources of Generation - Fossil Operations and - Nuclear Operations below regarding generation projects currently under construction.

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FPL SOURCES OF GENERATION

At December 31, 2016, FPL's resources for serving load consisted of26,836 MW, of which 26,017 MW were from FPL-owned facilities and approximately 819MW were available through purchased power agreements, including 330 MW associated with a coal-fired generation facility located in Indiantown, Florida that FPL purchased in January 2017 (Indiantown generation facility) (see Note 13 - Contracts). FPL owned and operated 33 units that used fossil fuels, primarily natural gas, and had joint ownership interests in 3 coal units with an aggregate generating capacity of 22,305 MW. In addition, FPL owned, or had undivided interests in, and operated 4 nuclear units with generating capacity totaling 3,453 MW (see Nuclear Operations below) and5 solar generation facilities with generating capacity totaling 259MW (excluding 75 MW of non-incremental solar capability which is provided through a natural gas generation facility). FPL customer usage and operating revenues are typically higher during the summer months, largely due to the prevalent use of air conditioning in FPL's service territory. Occasionally, unusually cold temperatures during the winter months result in significant increases in electricity usage for short periods of time.

Fuel Sources

FPL relies upon a mix of fuel sources for its ~~generating~~generation facilities, ~~along with~~the ability of some of its generation facilities to operate on both natural gas and oil, and on purchased power ~~in order~~ to maintain the flexibility to achieve a more economical fuel mix ~~by responding~~in order to respond to market and industry developments. ~~See descriptions of fossil, nuclear and solar operations below and a listing of FPL's generating facilities in Item 2. Properties - Generating Facilities.~~

~~FPL's 2014 fuel mix based on MWh produced, including purchased power, was as follows:~~

~~Oil and Solar are collectively less than 1%~~

~~Fossil Operations (Natural Gas, Coal and Oil)~~

At December 31, 2014, FPL owned and operated 70 units that used fossil fuels, primarily natural gas, and had a joint ownership interest in 3 coal units. Combined, the fossil fleet provided 21,604 MW of generating capacity for FPL. These fossil units are out of service from time to time for routine maintenance or on standby during periods of reduced electricity demand. A common industry benchmark for fossil unit reliability is the equivalent forced outage rate (EFOR), which represents a generating unit's inability to provide electricity when required to operate. For the five years 2009 - 2013, FPL's average annual EFOR was in the top decile among its electric utility fossil fleet peers in the U.S.



*Oil is less than 1%	*Oil and Solar are collectively less than 1%

~~FPL's natural gas plants require natural gas transportation, supply and storage.~~ Significant Fuel Contracts.As of December 31, 2016, FPL had the following significant fuel contracts in place:

FPL has firm transportation contracts ~~in place~~ for existing natural gas pipeline capacity with five different transportation ~~suppliers. These agreements~~suppliers, which provide for an aggregate maximum delivery quantity of ~~2,069,000~~1,969,000 MMBtu/day with expiration dates ranging from ~~2015~~2017 to ~~2036that together~~2036. Together, these contracts are expected to satisfy substantially all of the currently anticipated needs for natural gas transportation through ~~2016.~~mid-2017. To the extent desirable, FPL also purchases interruptible natural gas transportation service from ~~these~~the five transportation suppliers.

FPL has 25-year natural gas transportation ~~suppliers based on~~agreements with each of Sabal Trail and Florida Southeast Connection for a quantity of 400,000 MMBtu/day beginning in mid-2017 and increasing to 600,000 MMBtu/day in mid-2020. These new agreements, when combined with FPL's existing agreements, are expected to satisfy substantially all of FPL's natural gas transportation needs through at least 2020. FPL's firm commitments under the new agreements are contingent upon the occurrence of certain events, including the completion of construction of the pipeline ~~availability.~~ system to be built by Sabal Trail and Florida Southeast Connection. See NEER - Generation and Other Operations - Other Operations below and Note 13 - Contracts.

FPL has several short- and medium-term natural gas supply contracts to provide a portion of FPL's anticipated needs for natural gas. The remainder of FPL's natural gas requirements is purchased in the spot market. FPL has an agreement for the storage of natural gas that expires in ~~2017. See Note 13 - Contracts.~~

In 2013, the FPSC approved FPL's 25-year natural gas transportation agreements with each of Sabal Trail and Florida Southeast Connection for a quantity of 400,000 MMBtu/day beginning on May 1, 2017 and increasing to 600,000 MMBtu/day on May 1, 2020. FPL's firm commitments under the agreements are contingent upon the occurrence of certain events, including FERC approval and completion of construction of the pipeline system to be built by Sabal Trail and Florida Southeast Connection. A FERC decision is expected in 2015. See Other NEE Operating Subsidiaries - Natural Gas Pipeline Systems - Florida Natural Gas Pipeline System below and Note 13 - Contracts. These new agreements, when combined with FPL's existing agreements, are expected to satisfy substantially all of FPL's natural gas transportation needs through at least 2020.

~~In December 2014, the FPSC approved FPL’s petition~~to invest in long-term natural gas supplies in the Woodford Shale region in southeastern Oklahoma and for the recovery of costs associated with the investment through the fuel clause. A wholly-owned subsidiary of FPL will partner with a third party to develop up to 38 natural gas production wells in the Woodford Shale region and receive its ownership share of the natural gas produced from these wells. FPL’s projected investment in these natural gas production

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wells as of December 31, 2014 is included in estimated capital expenditures set forth in Note 13 - Commitments. In 2015, the State of Florida Office of Public Counsel (OPC) and Florida Industrial Power Users Group each has filed notices of appeal to the Florida Supreme Court that relate to challenging the Woodford Shale natural gas reserves project, which appeals are pending. As part of FPL’s petition to invest in natural gas supplies in the Woodford Shale region, it also requested the FPSC approve a set of guidelines proposed by FPL under which FPL could participate in additional natural gas production projects and recover its costs through the fuel clause without prior FPSC approval. In 2015, the FPSC filed a motion with the Florida Supreme Court requesting that the Court issue an order confirming the FPSC has jurisdiction to consider and issue a decision on FPL’s proposed guidelines while the appeals regarding the Woodford Shale natural gas reserves project are pending. Also in 2015, the OPC filed a petition requesting the Florida Supreme Court prohibit the FPSC from ruling on the proposed guidelines while appeals concerning the Woodford Shale natural gas reserves project are pending.

~~St. Johns River Power Park (SJRPP) Units Nos.~~1 and 2, coal-fired units in which FPL has a joint ownership interest, have firm coal supply and transportation contracts for a portion of their fuel and transportation needs through 2017. Scherer Unit No.4, the other coal-fired unit in which FPL has a joint ownership interest, has firm coal supply and transportation contracts for a portion of its fuel needs and all of its transportation needs through 2016. Any of the remaining fuel requirements for these coal-fired units will be obtained in the spot market. See Note13~~- Contracts. With respect to its oil plants, FPL obtains its fuel requirements in the spot market.~~

~~Modernization Projects.~~ In April 2013 and in April 2014, FPL placed in service, at each of its Cape Canaveral and Riviera Beach power plants, a natural gas-fired combined-cycle modernized unit with generating capacity of 1,210 MW and 1,212 MW, respectively. FPL is in the process of modernizing its Port Everglades power plant to a high-efficiency natural gas-fired unit that is expected to provide approximately 1,240 MW of capacity and be placed in service by mid-2016.

~~Nuclear Operations~~

~~At December 31, 2014, FPL owned, or had undivided interests in, and operated the following four nuclear units with a total net generating capacity of 3,453 MW.~~

Facility MW
Operating License
Expiration Dates
St. Lucie Unit No. 1 981 2036
St. Lucie Unit No. 2 840 2043
Turkey Point Unit No. 3 811 2032
Turkey Point Unit No. 4 821 2033

2018.

FPL has several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel with expiration dates ranging from late February ~~2015~~2017 through ~~2030. See Note 13 - Commitments.~~ 2031.

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Nuclear Operations

At December 31, 2016, FPL owned, or had undivided interests in, and operated the following four nuclear units in Florida with a total net generating capacity of 3,453 MW. FPL's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages typically require the unit to be removed from service for variable lengths of time.



Facility	FPL's Ownership (MW)	Beginning of Current or Next Scheduled Refueling Outage	Operating License Expiration Dates
St. Lucie Unit No. 1	981	March 2018	2036
St. Lucie Unit No. 2	840	February 2017	2043
Turkey Point Unit No. 3	811	March 2017	2032
Turkey Point Unit No. 4	821	October 2017	2033

NRC regulations require FPL to submit a plan for decontamination and decommissioning five years before the projected end of plant operation. FPL's current plans, under the applicable operating licenses, provide for prompt dismantlement of Turkey Point Units Nos. 3 and 4 with decommissioning activities commencing in 2032 and 2033, respectively. Current plans provide for St. Lucie Unit No. 1 to be mothballed beginning in 2036 with decommissioning activities to be integrated with the prompt dismantlement of St. Lucie Unit No. 2 commencing in 2043.

~~Projects to Add Additional Capacity.~~ FPL's need petition for two additional nuclear units at its Turkey Point site was approved by the FPSC in 2008 and FPL is moving forward with activities necessary to obtain all permits, licenses and approvals necessary for construction and operation of the units. The two units are expected to add a total of approximately 2,200 MW of capacity. The timing of commercial operation will be subject to various regulatory approvals from the FPSC and other agencies which will be required throughout the licensing and development processes and the nuclear units are expected to be placed in-service in 2027 and 2028. The NRC has indicated that its consideration of the licenses for the two units will be complete by early 2017.

~~Nuclear Unit Scheduled Refueling Outages.~~ FPL's nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages typically require the unit to be removed from service for variable lengths of time. The following table summarizes each unit's next scheduled refueling outage:



~~Facility~~		~~Next Scheduled~~ ~~Refueling Outage~~
~~St. Lucie Unit No. 1~~		~~March 2015~~
~~St. Lucie Unit No. 2~~		~~September 2015~~
~~Turkey Point Unit No. 3~~		~~October 2015~~
~~Turkey Point Unit No. 4~~		~~March 2016~~

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~~Spent Nuclear Fuel.~~FPL's nuclear facilities use both on-site storage pools and dry storage casks to store spent nuclear fuel generated by these facilities, which are expected to provide sufficient storage of spent nuclear fuel at these facilities through license expiration. In August 2014, the NRC issued its Continued Storage of Spent Nuclear Fuel Rule which supports the NRC's determination that licensees can safely store spent nuclear fuel at nuclear power plants indefinitely. Petitions have been filed with the NRC and the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) challenging the rule and requesting that the NRC suspend final reactor licensing decisions in all open NRC licensing proceedings (including the licensing proceeding for two additional nuclear units at FPL's Turkey Point site) alleging that the rule is deficient. The petitions filed with the NRC have been fully briefed and a decision by the NRC is pending. The NRC requested that the D.C. Circuit defer briefing on the appellate case until the NRC decides the petitions pending before it.

~~Nuclear Waste Policy Act of 1982, as amended (Nuclear Waste Policy Act)~~ - Under the Nuclear Waste Policy Act, the DOE is responsible for the development of a repository for the disposal of spent nuclear fuel and high-level radioactive waste. As required by the Nuclear Waste Policy Act, FPL is a partyProjects to ~~contracts with the DOE to provide for disposal of spent nuclear fuel from its nuclear units.~~Add Additional Capacity

The DOE was required to construct permanent disposal facilities and take title to and provide transportation and disposal for spent nuclear fuel by January 31, 1998 for a specified fee based on current generation from nuclear power plants which fee was subsequently set to zero effective May 2014. The DOE did not meet its statutory obligation for disposalFPL is in the process of ~~spent nuclear fuel under~~adding the ~~Nuclear Waste Policy Act. In 2009, FPL and certain of FPL's nuclear plant joint owners entered into a settlement agreement (spent fuel settlement agreement) with~~following additional capacity during the U.S. government agreeing to dismiss with prejudice lawsuits filed against the U.S. government seeking damages caused by the DOE's failure to dispose of spent nuclear fuel from FPL's nuclear plants. The spent fuel settlement agreement permits FPL to make annual filings to recover certain spent fuel storage costs incurred by FPL which are reimbursable by the U.S. government on an annual basis.

~~Yucca Mountain~~ - In 2010, the DOE filed a motion with the NRC to withdraw its license application for a nuclear waste repository at Yucca Mountain, which request was denied. In 2011, the NRC issued an order suspending the Yucca Mountain licensing proceeding, which order was challenged, and in 2013, the D.C. Circuit issued an order requiring the NRC to proceed with the legally mandated licensing process for a nuclear waste repository at Yucca Mountain. As a result, the NRC has recently completed the technical reviewterm of the ~~application and is planning to supplement the DOE's environmental impact statement. Certain requirements must be met before the NRC can issue a license for the repository.~~

~~Nuclear Regulatory Developments.~~Based on the NRC's comprehensive review of processes and regulations relating to nuclear facilities in the U.S. following the 2011 earthquake and tsunami in Japan, the NRC established, among other things, actions to be completed at each nuclear site and issued various orders and requests for information with a prescribed timeline for implementation and completion by the end of 2016. The NRC continues to monitor industry implementation of the orders for, among others, enhanced venting capabilities for boiling water reactors for which implementation is expected to go beyond 2016 (FPL's nuclear units do not use boiling water reactors; see NEER - Generation and Other Operations - Nuclear Facilities - Nuclear Regulatory Developments). FPL is currently working with the NRC on the approval and implementation of actions required to meet new NRC requirements. A portion of the costs for these actions is being recovered through base rates based on estimated costs for 2013, with any incremental costs being recovered through the capacity clause, all of which are included in estimated capital expenditures. See FPL Regulation -rate agreement (see FPL Rate Regulation - ~~Cost Recovery Clauses below~~Base Rates - Rates Effective January 2017 through December 2020 below):

an approximately 1,750 MW natural gas-fired combined-cycle unit in Okeechobee County, Florida (Okeechobee Clean Energy Center), with a planned in-service date of mid-2019; and ~~Note 13 - Commitments.~~

up to 300 MW annually of new solar generation in each of 2017 through 2020.

The lessons learned from the events in Japan and the results of the NRC's actions have and will continue to, among other things, result in new licensing and safety-related requirements for U.S. nuclear facilities. Any new requirements could, among other things, impact future licensing and operations of U.S. nuclear facilities, including FPL's existing nuclear facilities and NRC approval of two additional nuclear units at FPL's Turkey Point site, and could, among other things, result in increased cost and capital expenditures associated with the operation and maintenance of FPL's nuclear units.

~~Solar Operations~~

Solar generation can be provided primarily through two conventions: utility-owned and customer-owned or leased. In utility-owned solar generation, the energy generated goes directly to the transmission grid, whereas customer-owned or leased solar generation generally goes directly to the location it is serving with any excess over that local need being fed back to the transmission grid. There are two principal solar technologies used for utility-scale projects: PV and thermal. At December 31, 2014, FPL owned and operated two solar PV generating facilities, which provided a total of 35 MW of generation capacity, and a 75 MW solar thermal hybrid facility. FPL supports the advancement of solar generation primarily for its fuel diversity and emissions reduction benefits, and plans to continue to support, study and pursue solar generation that is beneficial for FPL's customers. FPL plans to build three solar PV projects that are expected to provide approximately 74 MW each and be placed into service by the end of 2016.

~~Purchased Power~~

In addition to owning generation facilities, FPL also purchases power and capacity from non-utility generators and other utilities to meet customer demand through long-term purchased power agreements. As of December 31, 2014, FPL's long-term purchased power agreements provided for the purchase of approximately 1,963 MW of power with expiration dates ranging from December

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~~2015 through 2032.See Note 13 - Contracts. On occasion, FPL may procure short-term power and capacity for both economic and reliability purposes.~~

FPL ENERGY MARKETING AND TRADING

FPL's Energy Marketing & Trading division (EMT) buys and sells wholesale energy commodities, such as natural gas, oil and electricity. EMT procures natural gas and oil for FPL's use in power generation and sells excess natural gas, oil and electricity. Prior to January 2017, EMT ~~also uses~~had utilized derivative instruments (primarily swaps, options and forwards) to manage the commodity price risk inherent in the purchase and sale of fuel and electricity. Under the 2016 rate agreement that is effective beginning January 2017 and discussed below, EMT will not enter into any new derivative instruments to manage its commodity price risk for the term of the 2016 rate agreement. Substantially all of the results of EMT's activities are passed through to customers in the fuel or capacity clauses. See ~~FPL Regulation - FPL Rate Regulation below,~~ Management's Discussion - Energy Marketing and Trading and Market Risk Sensitivity and Note 3.

FPL REGULATION

FPL's operations are subject to regulation by a number of federal, state and other organizations, including, but not limited to, the following:

the FPSC, which has jurisdiction over retail rates, service territory, issuances of securities, planning, siting and construction of facilities, among other things;

the FERC, which oversees the acquisition and disposition of generation, transmission and other facilities, transmission of electricity and natural gas in interstate commerce, proposals to build and operate interstate natural gas pipelines and storage facilities, and wholesale purchases and sales of electric energy, among other things;

the NERC, which, through its regional entities, establishes and enforces mandatory reliability standards, subject to approval by the FERC, to ensure the reliability of the U.S. electric transmission and generation system and to prevent major system blackouts;

the NRC, which has jurisdiction over the operation of nuclear power plants through the issuance of operating licenses, rules, regulations and orders; and

the EPA, which has the responsibility to maintain and enforce national standards under a variety of environmental laws. The EPA also works with industries and all levels of government, including federal and state governments, in a wide variety of voluntary pollution prevention programs and energy conservation efforts.

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FPL Rate Regulation

The FPSC sets rates at a level that is intended to allow FPL the opportunity to collect from retail customers total revenues (revenue requirements) equal to FPL's cost of providing service, including a reasonable rate of return on invested capital. To accomplish this, the FPSC uses various ratemaking mechanisms, including, among other things, base rates and cost recovery clauses.

Base Rates. In general, the basic costs of providing electric service, other than fuel and certain other costs, are recovered through base rates, which are designed to recover the costs of constructing, operating and maintaining the utility system. These basic costs include O&M expenses, depreciation and taxes, as well as a return on FPL's investment in assets used and useful in providing electric service (rate base). At the time base rates are ~~determined,~~established, the allowed rate of return on rate base approximates the FPSC's determination of FPL's estimated weighted-average cost of capital, which includes its costs for outstanding debt and an allowed ROE. The FPSC monitors FPL's actual regulatory ROE through a surveillance report that is filed monthly by FPL with the FPSC. The FPSC does not provide assurance that any regulatory ROE will be achieved. Base rates are determined in rate proceedings or through negotiated settlements of those proceedings. Proceedings can occur at the initiative of FPL or upon action by the FPSC. Base rates remain in effect until new base rates are approved by the FPSC.

Rates Effective January ~~2013 -~~2017 through December ~~2016~~2020 - In ~~January 2013,~~December 2016, the FPSC issued a final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding ~~(2012~~(2016 rate agreement). Key elements of the ~~2012~~2016 rate agreement, which is effective from January ~~2013~~2017 through at least December ~~2016,~~2020, include, among other things, the following:

New retail base rates and charges were established ~~in January 2013~~ resulting in ~~an increase~~the following increases in annualized retail base ~~revenues~~revenues:


◦	$400 million beginning January 1, 2017;


◦	$211 million beginning January 1, 2018; and


◦	$200 million when the Okeechobee Clean Energy Center achieves commercial operation, which is expected to occur in mid-2019.

In addition, FPL is eligible to receive, subject to conditions specified in the 2016 rate agreement, base rate increases associated with the addition of ~~$350 million on~~up to 300 MW annually of new solar generation in each of 2017 through 2020 and may carry forward any unused MW to subsequent years during the term of the 2016 rate agreement. FPL will be required to demonstrate that any proposed solar facilities are cost effective and scheduled to be in service before December 31, 2021. FPL has agreed to an ~~annualized basis.~~installed cost cap of $1,750 per kW.

FPL's allowed regulatory ROE is ~~10.50%~~10.55%, with a range of ~~plus or minus 100 basis points.~~9.60% to 11.60%. If FPL's earned regulatory ROE falls below ~~9.50%~~9.60%, FPL may seek retail base rate relief. If the earned regulatory ROE rises above ~~11.50%~~11.60%, any party ~~to the 2012 rate agreement~~ other than FPL may seek a review of FPL's retail base rates.

Retail base rates will be increased by the annualized base revenue requirements for FPL's three modernization projects (Cape Canaveral, Riviera Beach and Port Everglades) as each of the modernized power plants becomes operational. (Cape Canaveral and Riviera Beach became operational in April 2013 and April 2014, respectively, and Port Everglades is expected to be operational by mid-2016.)

Cost recovery of WCEC Unit No. 3, which was placed in service in May 2011, will continue to occur through the capacity clause; however, such recovery will not be limited to the projected annual fuel cost savings as was the case in the previous rate agreement discussed below.

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Subject to certain conditions, FPL may amortize, over the term of the ~~2012~~2016 rate agreement, aup to $1.0 billion of depreciation reserve surplus plus the reserve amount remaining ~~at the end of~~under FPL's 2012 ~~under the 2010~~ rate agreement discussed below (approximately ~~$224~~$250 million) ~~and may amortize a portion of FPL's fossil dismantlement reserve up to a maximum of $176 million (collectively, the reserve)~~, provided that in any year of the ~~2012~~2016 rate agreement, FPL must amortize at least enough reserve to maintain a ~~9.50%~~9.60% earned regulatory ROE but may not amortize any reserve that would result in an earned regulatory ROE in excess of ~~11.50%~~11.60%.

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 exceed $800 million in any given calendar year, FPL may request an increase to the $4 surcharge to recover ~~the amount~~amounts above ~~$800~~$400 million.

In January 2017, the Sierra Club filed a notice of appeal challenging the FPSC’s final order approving the 2016 rate agreement, which notice of appeal is pending before the Florida Supreme Court.

Rates Effective January 2013 through December 2016 - Effective January 2013, pursuant to an FPSC final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding (2012 rate agreement), new retail base rates and charges for FPL were established resulting in an increase in retail base revenues of $350 million on an annualized basis. The 2012 rate agreement, provided for, among other things, the following:

•a regulatory ROE of 10.50% with a range of plus or minus 100 basis points;

an increase in annualized base revenue requirements as each of three FPL modernized power plants became operational in April 2013, April 2014 and April 2016;

the continuation of cost recovery through the capacity clause (reported as retail base revenues) for a generating unit which was placed in service in May 2011 (beginning January 2017, under the 2016 rate agreement, cost recovery will be through base rates);

subject to certain conditions, the right to reduce depreciation expense up to $400 million (reserve), provided that in any year of the 2012 rate agreement, FPL was required to amortize enough reserve to maintain an earned regulatory ROE within the range of 9.50% to 11.50% (see below regarding a subsequent reduction in the reserve amount);

an interim cost recovery mechanism for storm restoration costs (see Note 1 - Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve); and

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an incentive mechanism whereby customers ~~will~~ receive 100% of certain gains, including but not limited to gains from the purchase and sale of electricity and natural gas (including transportation and storage), up to a specified threshold; gains exceeding that specified threshold ~~will be~~were shared by FPL and its customers.

~~Rates Effective March 2010 - December 2012~~ - Effective March 1, 2010, pursuant to an FPSC final order (2010 FPSC rate order), new retail base rates for FPL were established, resulting in an increase in retail base revenues of approximately $75 million on an annualized basis. The 2010 FPSC rate order, among other things, also established a regulatory ROE of 10.0% with a range of plus or minus 100 basis points. In ~~February 2011,~~August 2015, the FPSC ~~issued a final order approving~~approved a stipulation and settlement ~~agreement~~ between the Office of Public Counsel and FPL ~~and principal parties~~regarding issues relating to the ratemaking treatment for FPL’s purchase of a 250 MW coal-fired generation facility located in ~~FPL's 2009 rate case (2010 rate agreement). The 2010 rate agreement,~~Jacksonville, Florida (Cedar Bay generation facility), which ~~was effective through~~FPL retired in December ~~31, 2012, provided for, among other things, a reduction in depreciation expense (surplus depreciation credit) in any calendar year up to a cap in 2010~~2016. As part of $267 million, a cap in subsequent years of $267 million plus the amount of any unused portion from prior years, and a total cap of $776 million over the course of the 2010 rate agreement, provided that in any year of the 2010 rate agreement FPL was required to use enough surplus depreciation credit to maintain an earned regulatory ROE within the range of 9.0% - 11.0%. The 2010 rate agreement also permitted incremental cost recovery through FPL's capacity clause for WCEC Unit No. 3 up tothis settlement, the amount of the ~~projected annual fuel savings for customers. See Cost Recovery Clauses below for additional information regarding the capacity clause.~~reserve was reduced by $30 million to $370 million.

Cost Recovery Clauses. Cost recovery clauses ~~which~~ are designed to permit full recovery of certain costs and provide a return on certain assets allowed to be recovered through the various ~~clauses, include substantially all fuel, purchased power and interchange costs, certain construction-related costs and conservation and certain environmental-related costs.~~clauses. Cost recovery clause costs are recovered through levelized monthly charges per kWh or kW, depending on the customer's rate class. These cost recovery clause charges are calculated at least annually based on estimated costs and estimated customer usage for the following year, plus or minus true-up adjustments to reflect the estimated over or under recovery of costs for the current and prior periods. An adjustment to the levelized charges may be approved during the course of a year to reflect revised estimates. FPL recovers costs from customers through the following clauses:

Fuel - fuel costs and energy charges ~~under the~~relating to purchased power agreements, ~~are recovered from customers through the fuel clause,~~ the most significant of the cost recovery clauses in terms of operating revenues. FPL uses a risk management fuel procurement program which has been approved by the FPSC. The FPSC reviews the program activities and results for prudence annually as part of its 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. See FPL Energy Marketing and Trading above,revenues (see Note 1 - Regulation and Note 3. Costs associated with FPL’s investment in long-term natural gas supplies in the Woodford Shale region that have been approved by the FPSC will also be recovered through the fuel clause. See FPL Sources of GenerationRate Regulation);

Capacity - ~~Fossil Operations above.~~

~~Capacity~~primarily capacity payments to non-utility generators and other utilities ~~are recovered from customers through the capacity clause. In accordance~~and certain costs associated with the FPSC's nuclear cost recovery rule, FPL also recovers pre-construction costs and carrying charges (equal to a pretax AFUDC rate) on construction costs for new nuclear capacity through the capacity clause. As property related to the new nuclear capacity goes into service, construction costs and a return on investment are recovered through base rate increases effective beginning the following January. See FPL Sources of Generation - Nuclear Operations above. In January 2014, FPL began recovering, through the capacity clause, the incremental costs incurred to comply with new NRC requirements established following the 2011 earthquake and tsunami in Japan. See FPL Sources of Generation - Nuclear Operations - Nuclear Regulatory Developments above. In accordance with the 2012 and 2010 rate agreements, cost recovery for WCEC Unit No. 3 is permitted during the termacquisition of the ~~agreements through FPL's capacity clause and is reported as retail base revenues.~~Cedar Bay generation facility (see Note 1 - Rate Regulation);

~~Costs~~Energy Conservation - costs associated with implementing energy conservation ~~programs are recovered from customers through the energy conservation cost recovery clause. Certain~~programs; and

Environmental - certain costs of complying with federal, state and local environmental regulations enacted after April 1993 and costs associated with three of FPL's ~~three~~ solar ~~facilities are recovered through the environmental cost recovery clause (environmental clause).~~facilities.

The FPSC has the authority to disallow recovery of costs that it considers excessive or imprudently incurred. These costs may include, among others, fuel and O&M expenses, the cost of replacing power lost when fossil and nuclear units are unavailable, storm restoration costs and costs associated with the construction or acquisition of new facilities.

FERC

The Federal Power Act ~~gives~~grants the FERC exclusive ratemaking jurisdiction over wholesale sales of electricity and the transmission

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of electricity and natural gas in interstate commerce. Pursuant to the Federal Power Act, electric utilities must maintain tariffs and rate schedules on file with the FERC which govern the rates, terms and conditions for the provision of FERC-jurisdictional wholesale power and transmission services. The Federal Power Act also gives the FERC authority to certify and oversee a national electric reliability organization with authority to establish and independently enforce mandatory reliability standards applicable to all users, owners and operators of the bulk-power system. See NERC below. Electric utilities are subject to accounting, record-keeping and reporting requirements administered by the FERC. The FERC also places certain limitations on transactions between electric utilities and their affiliates.

NERC

The NERC has been certified by the FERC as the national electric reliability organization. The NERC's mandate is to ensure the reliability and security of the North American bulk-power system through the establishment and enforcement of reliability standards approved by FERC. The NERC's regional entities also enforce reliability standards approved by the FERC. FPL is subject to these reliability standards and incurs costs to ensure compliance with continually heightened requirements, and can incur significant penalties for failing to comply with them.

FPL Environmental Regulation

FPL is subject to environmental laws and regulations ~~and is affected by some of the emerging issues~~as described in the NEE Environmental Matters section below. FPL expects to seek recovery through the environmental clause for compliance costs associated with any new environmental laws and regulations.

FPL EMPLOYEES

FPL had approximately ~~8,700~~8,900 employees at December 31, ~~2014.~~2016. Approximately ~~33%~~34% of the employees are represented by the International Brotherhood of Electrical Workers (IBEW) under a collective bargaining agreement with FPL that expires October 31, 2017.

~~II.~~ NEER

NEER, a limited liability company organized under the laws of Delaware, was formed in 1998 to aggregate NEE's competitive energy businesses. ItNEER is a ~~limited liability~~diversified clean energy company ~~organized under~~with a business strategy that emphasizes the ~~laws~~development, acquisition and operation of ~~Delaware and is~~long-term contracted assets with a ~~wholly-owned subsidiary of NEECH.~~focus on renewable projects. Through its subsidiaries, NEER currently owns, develops, constructs, manages and operates electric ~~generating~~generation facilities in wholesale energy markets primarily in the U.S., as well

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as in Canada and Spain. See Note ~~14.~~14 for information on revenues from foreign sources and long–lived assets located in foreign countries. NEER, with approximately 19,882 MW of generating capacity at December 31, 2016, is one of the largest wholesale generators of electric power in the U.S., with approximately ~~19,777~~18,862 MW of generating capacity across 2529 states, and has 920 MW of generating capacity in 4 Canadian provinces and ~~1 Spanish province as~~99.8 MW of ~~December 31, 2014.~~generating capacity in Spain. NEER produces the majority of its electricity from clean and renewable sources as described more fully below. NEER is the largest ~~owner~~generator in the world of electric power from wind and ~~utility-scale~~universal solar energy projects ~~in North America.~~based on 2016 MWh produced. NEER also owned and operated approximately 200 substations and 1,240 circuit miles of transmission lines at December 31, 2016.

NEER also engages in energy-related commodity marketing and trading activities, including entering into financial and physical contracts, to hedge the production from its ~~generating~~generation assets that is not sold under long-term power supply agreements. These ~~activities~~contracts primarily include power and gas commodities and their related products, as well as ~~providing~~provide full energy and capacity requirements services primarily to distribution utilities in certain markets and ~~offering~~offer customized power and gas and related risk management services to wholesale customers. In addition, NEER ~~also~~ participates in natural gas, natural gas liquids and oil production primarily through non-operating ownership interests, and in pipeline infrastructure development, construction, management and operations, through either wholly owned subsidiaries or noncontrolling or joint venture interests, hereafter referred to as the gas infrastructure ~~business, and owns a retail electricity provider.~~business. NEER also hedges the expected output from its gas infrastructure production assets to protect against price movements.

As discussed in the Overview above, during 2014, NEP was formed to acquire, manage and own contracted clean energy projects with stable, long-term cash flows through a limited ~~partnership~~partner interest in ~~NextEra Energy Operating Partners, LP (NEP OpCo). On July 1, 2014,~~ NEP ~~closed its IPO by issuing 18,687,500 common units representing limited partnership interests.~~OpCo. Through an indirect ~~wholly-owned~~wholly owned subsidiary, NEE ~~retained 74,440,000~~owns 101,440,000 common units of NEP OpCo representing a ~~79.9%~~noncontrolling interest in NEP's operating ~~projects. Additionally,~~ projects of approximately 65.2% as of December 31, 2016.NEE owns a controlling general ~~partnership~~partner interest in NEP and consolidates NEP for financial reporting purposes. See Note 1 - NextEra Energy Partners, LP. ~~Upon completion~~As of ~~the IPO,~~December 31, 2016, NEP, through the combination of NEER's contribution of energy projects to NEP OpCo ~~owned~~in connection with NEP’s IPO in July 2014 and the acquisition of additional energy projects from NEER in 2015 and 2016, owns, or has an interest in, a portfolio of ~~ten~~22 wind and solar projects with ~~generation~~generating capacity totaling approximately ~~990 MW.~~2,787 MW and long-term contracted natural gas pipeline assets as discussed below. In addition ~~NEER has given~~in 2015, NEP OpCo issued 2 million NEP OpCo Class B Units to NEER in exchange for an approximately 50% ownership interest in three solar projects with a total generating capacity of 277 MW. NEER, as holder of the Class B Units, will retain 100% of the economic interests if, and until, NEER offers to sell the economic interests to NEP and NEP accepts such offer. NEP OpCo has a right of first offer for certain of ~~its~~NEER's assets (ROFO assets) if NEER should seek to sell the assets. ~~These~~The ROFO assets remaining as of December 31, 2016, include contracted wind and solar projects ~~some of which are still under construction,~~ with a combined capacity of ~~1,549~~approximately 1,076 MW. In ~~October 2014,~~2015, NEP ~~entered into agreements to expand its~~completed the acquisition of the membership interests in NET Holdings Management, LLC (Texas pipeline business), a developer, owner and operator of a portfolio ~~through two project acquisitions from NEER. The first acquisition, which closed~~of seven intrastate long-term contracted natural gas pipeline assets located in ~~January 2015, is a 250 MW wind project that was not included in the ROFO assets. The second acquisition is a 20 MW solar project included in the ROFO assets, which is currently under construction~~Texas (Texas pipelines). See Generation and ~~is expected to close in the first quarter of 2015.~~Other Operations - Contracted, Merchant and Other Operations - Other Operations below.

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~~MARKETS AND COMPETITION~~

Electricity markets in the U.S. and Canada are regional and diverse in character. All are extensively regulated, and competition in these markets is shaped and constrained by regulation. The nature of the products offered varies based on the specifics of regulation in each region. Generally, in addition to the natural constraints on pricing freedom presented by competition, NEER may also face specific constraints in the form of price caps, or maximum allowed prices, for certain products. NEER's ability to sell the output of its generation facilities may also be constrained by available transmission capacity, which can vary from time to time and can have a significant impact on pricing.

~~The degree and nature of competition that NEER faces is different in wholesale markets and in retail markets. Approximately 90% of NEER's revenue is derived from wholesale markets.~~

Wholesale power generation is a capital-intensive, commodity-driven business with numerous industry participants. NEER primarily competes on the basis of price, but believes the green attributes of NEER's generating assets, its creditworthiness and its ability to offer and manage reliable customized risk solutions to wholesale customers are competitive advantages. Wholesale power generation is a regional business that is highly fragmented relative to many other commodity industries and diverse in terms of industry structure. As such, there is a wide variation in terms of the capabilities, resources, nature and identity of the companies NEER competes with depending on the market. In wholesale markets, customers' needs are met through a variety of means, including long-term bilateral contracts, standardized bilateral products such as full requirements service and customized supply and risk management services.

In general, U.S. electricity markets encompass three classes of services: energy, capacity and ancillary services. Energy services relate to the physical delivery of power; capacity services relate to the availability of MW capacity of a power generation asset; and ancillary services are other services related to power generation assets, such as load regulation and spinning and non-spinning reserves. The exact nature of these classes of services is defined in part by regional tariffs. Not all regions have a capacity services class, and the specific definitions of ancillary services vary from region to region.

RTOs and ISOs exist in a number of regions within which NEER operates to coordinate generation and transmission across wide geographic areas and to run markets. NEER also has operations that fall within the Western Electricity Coordinating Council reliability region that are not under the jurisdiction of an established RTO or ISO. Although each RTO and ISO may have differing objectives and structures, some benefits of these entities include regional planning, managing transmission congestion, developing larger wholesale markets for energy and capacity, maintaining reliability and facilitating competition among wholesale electricity providers. NEER has operations that fall within the following RTOs and ISOs:

~~Alberta Electric System Operator~~

~~California Independent System Operator~~

~~ERCOT~~

~~Independent Electricity System Operator (in Ontario)~~

~~ISO New England (ISO-NE)~~

~~Midcontinent Independent System Operator, Inc.~~

~~New York Independent System Operator~~

~~PJM~~

~~Southwest Power Pool~~

NEER competes in different regions to different degrees, but in general it seeks to enter into long-term bilateral contracts for the full output of its generating facilities, and, as of December 31, 2014, approximately 65% of NEER's generating capacity is fully committed under long-term contracts. Where long-term contracts are not in effect, NEER sells the output of its facilities into daily spot markets. In such cases, NEER will frequently enter into shorter term bilateral contracts, typically of less than three years duration, to hedge the price risk associated with selling into a daily spot market. Such bilateral contracts, which may be hedges either for physical delivery or for financial (pricing) offset, may only protect a portion of the revenue that NEER expects to derive from the associated generation facility and may not qualify for hedge accounting under GAAP. Contracts that serve the economic purpose of hedging some portion of the expected revenue of a generation facility but are not recorded as hedges under GAAP are referred to as “non-qualifying hedges” for adjusted earnings purposes. See Management's Discussion - Overview - Adjusted Earnings.

Certain facilities within the NEER wind and solar generation portfolio produce RECs and other environmental attributes which are typically sold along with the energy from the plants under long-term contracts. For the wind and solar generation not sold under long-term contracts, the RECs and other environmental attributes may be sold separately.

While the majority of NEER's revenue is derived from the output of its generating facilities, NEER is also an active competitor in several regions in the wholesale full requirements business and in providing structured and customized power and fuel products and services to a variety of customers. In the full requirements service, typically, the supplier agrees to meet the customer's needs for a full range of products for every hour of the day, at a fixed price, for a predetermined period of time, thereby assuming the risk of fluctuations in the customer's volume requirements.

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The deregulated retail energy business is typically a highly competitive business. In general, competition in the retail energy business is on the basis of price, service, brand image, product offerings and market perceptions of creditworthiness. Electricity is sold pursuant to a variety of product types, including fixed, indexed and renewable products, and customers elect terms of service typically ranging from one month to five years. Retail energy rates are market-based, and not subject to traditional cost-of-service regulation by public utility commissions. Transmission and distribution service companies provide, on a non-discriminatory basis, the wires and metering services necessary to deliver service to customers. Subsidiaries of NEER compete in certain states for retail customers, which can be divided into two principal segments: residential and commercial and industrial (C&I). Residential customers largely require only energy services, which may be purchased on a month-to-month basis or under a multi-year contract. Small commercial customers behave and contract similarly to residential customers for an energy-only product. Large C&I customers share many of the same characteristics as wholesale utility customers and may require similarly customized and structured products.

In general, competitive retail electric providers are exposed to both volume and price risk: customers' volumes will vary, and competitive retail providers are committed to supplying the customer's full needs at all times and are therefore responsible for purchases in wholesale markets to meet those needs. Wholesale prices will fluctuate in ways that do not necessarily match the retail prices committed to the customer.

Expanded competition in a frequently changing regulatory environment presents both opportunities and risks for NEER. Opportunities exist for the selective acquisition of generation assets and for the construction and operation of efficient facilities that can sell power in competitive markets. NEER seeks to reduce its market risk by having a diversified portfolio by fuel type and location, as well as by contracting for the future sale of a significant amount of the electricity output of its facilities.

GENERATION AND OTHER OPERATIONS

NEER sells products associated with its own ~~generating~~generation facilities (energy, capacity, ~~RECs~~renewable energy credits (RECs) and ancillary services) in competitive markets in regions where those facilities are located. Customer transactions may be supplied from NEER ~~generating~~generation facilities or from purchases in the wholesale markets, or from a combination thereof. See Markets and Competition below.

At December 31, ~~2014, the locations of NEER's generation facilities in North America are as follows:~~

~~At December 31, 2014,~~2016, NEER managed or participated in the management of essentially all of its generation projects and all of its natural gas pipeline assets in which it has an ownership interest. At December 31, 2016, the locations of NEER's generation facilities and natural gas pipeline assets in North America were as follows:

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NEER categorizes its portfolio in a number of different ways for different business purposes. See a listing of NEER's generating facilities in Item 2. Properties - Generating Facilities. The following presentation details NEER operations and fuel/technology mix, which NEE commonly uses in communicating its business:

Contracted, Merchant and Other Operations

NEER's portfolio of generation operations based on the presence/absence of long-term ~~contracts~~power sales agreements and other operations ~~is described below.~~was as follows:



	*Solar is less than 1%

Contracted Generation Assets. Contracted generation assets are ~~projects~~generation facilities with long-term power sales agreements for substantially all of their ~~output and certain wind~~capacity and/or energy output. Information related to contracted generation assets ~~where long-term power contracts are expected to be executed. At~~as of December 31, ~~2014, NEER had 13,045~~2016 was as follows:

represented approximately 15,994 MW of ~~contracted assets, substantially all of which have long-term power contracts. Essentially all of the output of these contracted assets were under power sales agreements, with a weighted-average~~generating capacity;

weighted average remaining contract ~~life~~term of approximately 1517 years, based on forecasted contributions to earnings; and

contracts for the supply of uranium and ~~some~~the conversion, enrichment and fabrication of nuclear fuel have ~~firm fuel and transportation agreements with~~ expiration dates ranging from ~~April 2015~~late February 2017 through ~~2022. See~~2032 (see Note 13 - ~~Contracts. Approximately 9,583 MW~~Contracts).

Table of ~~this capacity is wind generation and 1,621 MW of this capacity is nuclear generation. The remaining 1,841 MW use a variety of fuels and technologies such as natural gas, oil and solar.~~Contents

Merchant Generation Assets. Merchant generation assets are ~~projects~~generation facilities that do not have long-term power sales agreements to sell their ~~output,~~ capacity and/or ~~in the case of certain wind assets, are not expected to have long-term power contracts,~~energy output and therefore require active marketing and hedging. AtInformation related to merchant generation assets as of December 31, ~~2014, NEER's portfolio of merchant assets consists of 6,732~~2016 was as follows:

represented approximately 3,888 MW of ~~owned wind, nuclear, natural gas, oil and solar~~ generating ~~facilities,~~capacity, including ~~846~~781 MW of oil-fired peak ~~generating facilities. Approximately 60% (based on net MW capability)~~generation facilities;

primarily located in Texas and the Northeast regions of the ~~natural gas-fueled merchant assets~~U.S.;

contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel have ~~natural gas transportation agreements to provide for fluctuating natural gas requirements. See~~expiration dates ranging from August 2017 through 2029 (see Note 13 - ~~Contracts. Derivative instruments (primarily~~Contracts); and

utilize swaps, options, futures and ~~forwards) are generally used~~forwards to lock in pricing and manage the commodity price risk inherent in power sales and fuel purchases. ~~Managing market risk through these instruments introduces other types of risk, primarily counterparty, credit and operational risks.~~

Other Operations.

~~Other Operations.~~Gas Infrastructure Business ~~NEER's operations also include the gas infrastructure business and the customer supply and proprietary power and gas trading businesses.~~- At December 31, ~~2014,~~2016, NEER had approximately $3.5 billion invested in the natural gas ~~infrastructure business had non-operating~~pipelines discussed below and ownership interests in investments located in oil and gas shale formations primarily in the Midwest and South regions of the U.S. NEER continues to pursue in a selective way opportunities in the upstream (exploration and production) area when it believes the return potential is attractive and to gain insight into the natural gas industry. Additionally, NEER has identified a small portfolio of projects that may provide additional opportunities to enter into the midstream area, primarily through the transportation of natural gas. See Other NEE Operating Subsidiaries - Natural Gas Pipeline Systems for a discussion of recent natural gas pipeline activity. See NEER



	Miles of Pipeline	Pipeline Location/Route	NEER's Ownership	Total Capacity (per day)	Actual/Expected In-Service Dates
Operational:
Texas Pipelines^(a)	542	South Texas	61.6%	4.05 Bcf	1950 - 2014
Under Construction or In Development:
Sabal Trail^(b)	515	Southwestern Alabama to Central Florida	42.5%	0.83 Bcf - 1.075 Bcf	Mid-2017 - Mid-2021
Florida Southeast Connection^(b)	126	Central Florida to Martin County, Florida	100%	0.64 Bcf	Mid-2017
Mountain Valley Pipeline^(c)	301	Marcellus and Utica shale regions to markets in the Mid-Atlantic and Southeast regions of the U.S.	31%	2.00 Bcf	End of 2018

______________________


(a)	A portfolio of seven natural gas pipelines, of which a third party owns a 10% interest in a 120 mile pipeline with a daily capacity of approximately 2.3 Bcf. The pipelines have a total existing capacity of approximately 4 Bcf per day, of which 3 Bcf per day is contracted with firm ship-or-pay contracts that have a weighted-average remaining contract life of approximately 14 years.


(b)	See FPL - FPL Sources of Generation - Fuel Sources - Significant Fuel Contracts and Note 13 - Commitments and - Contracts.


(c)	Construction of the natural gas pipeline is subject to certain conditions, including FERC approval. See Note 13 - Commitments.

Customer Supply and Proprietary Power and Gas Trading ~~for~~- NEER provides commodities-related products to customers, engages in energy-related commodity marketing and trading activities and includes the operations of a ~~description~~retail electricity provider. Through its subsidiary PMI, NEER:

manages risk associated with fluctuating commodity prices and optimizes the value of ~~the customer supply and propriety~~NEER's power generation and gas infrastructure production assets through the use of swaps, options, futures and forwards;

sells output from NEER's plants that is not sold under long-term contracts and procures fossil fuel for use by NEER's generation fleet;

provides full energy and capacity requirements to customers; and

markets and trades energy-related commodity products and provides a wide range of electricity and fuel commodity products as well as marketing and trading ~~businesses.~~services to customers.

~~NEER Fuel/Technology Mix~~

~~NEER's generating output is produced using a variety of fuel sources as further described below.~~

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~~NEER's power generation in terms of MWh produced for the year ended December 31, 2014 by fuel type is as follows:~~NEER Fuel/Technology Mix

NEER owns and operates the majority of its generation facilities, which utilize the following mix of fuel sources:



	*Oil is less than 1%

Wind Facilities

~~At December 31, 2014, NEER had~~ ownership interests in ~~wind generating facilities with~~and operated a total net generating capacity of ~~11,427 MW. NEER operates all of these wind facilities, which are~~ 13,852 MW at December 31, 2016;

located in 1920 states in the U.S. and 4 provinces in ~~Canada. During 2014, NEER~~ Canada;

approximately 12,008 MW is from contracted wind assets located primarily throughout the West and Midwest regions of the U.S. and Canada;

approximately 1,844 MW is from merchant wind assets located in Texas;

added approximately ~~1,024~~1,465 MW ~~of new~~in the U.S. ~~wind generation~~in 2016; and ~~340 MW of new Canadian wind generation and sold or dismantled wind facilities with generation capacity totaling 147 MW. NEER is currently planning~~

expects to add new contracted wind generation of approximately 2,400 to 4,100 MW and approximately 1,600 MW of additional repowering generation within the existing U.S. wind portfolio in ~~2015 and 2016 totaling approximately 175 MW in Canada and 980 MW in the U.S. See~~2017 to 2018 (see Policy Incentives for Renewable Energy Projects below for additional discussion of NEER's expectations regarding wind development, construction and ~~construction.~~retrofitting).

~~Natural Gas Facilities~~

At December 31, 2014, NEER had ownership interests in and operated natural gas facilities with net generating capacity (including only NEER's net ownership interest in facility capacity) of 3,991 MW. Approximately 1,004 MW of this net generating capacity is from contracted natural gas assets located throughout the Northeastern U.S.

~~Nuclear Facilities~~

~~At December 31, 2014, NEER owned, or had undivided interests in, and operated the following four nuclear units with a total net generating capacity of 2,721 MW.~~

Facility Location MW
Portfolio
Category

Operating License
Expiration Dates
Seabrook New Hampshire 1,100
Merchant 2030
^(a)
Duane Arnold Iowa 431

Contracted^(b)
2034
Point Beach Unit No. 1 Wisconsin 595

Contracted^(c)
2030
Point Beach Unit No. 2 Wisconsin 595

Contracted^(c)
2033

~~______________________~~


~~(a)~~	~~In 2010, NEER filed an application with the NRC to renew Seabrook's operating license for an additional 20 years, which license renewal is dependent on NRC regulatory approvals.~~


~~(b)~~	~~NEER sells all of its share of the output of Duane Arnold under a long-term contract expiring in February 2025.~~


~~(c)~~	~~NEER sells all of the output of Point Beach Units Nos. 1 and 2 under long-term contracts through their current operating license expiration dates.~~

NEER's nuclear facilities have several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel with expiration dates ranging from late February 2015 through 2024. See Note 13 - Contracts. NEER is responsible for all nuclear unit operations and the ultimate decommissioning of the nuclear units, the cost of which is shared on a pro-rata basis by

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~~the joint owners for the jointly-owned units. NRC regulations require plant owners to submit a plan for decontamination and decommissioning five years before the projected end of plant operation.~~

~~Nuclear Unit Scheduled Refueling Outages.~~NEER's nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages typically require the unit to be removed from service for variable lengths of time. The following table summarizes each unit's next scheduled refueling outage:



~~Facility~~		~~Next Scheduled~~ ~~Refueling Outage~~
~~Seabrook~~		~~October 2015~~
~~Duane Arnold~~		~~October 2016~~
~~Point Beach Unit No. 1~~		~~March 2016~~
~~Point Beach Unit No. 2~~		~~October 2015~~

~~Spent Nuclear Fuel.~~ NEER's nuclear facilities use both on-site storage pools and dry storage casks to store spent nuclear fuel generated by these facilities, which are expected to provide sufficient storage of spent nuclear fuel at these facilities through license expiration.

As owners and operators of nuclear facilities, certain subsidiaries of NEER are subject to the Nuclear Waste Policy Act and are parties to the spent fuel settlement agreement described in FPL - FPL Sources of Generation - Nuclear Operations.

~~Nuclear Regulatory Developments.~~ For discussion of developments regarding the impact of the 2011 earthquake and tsunami in Japan as it relates to U.S. nuclear facilities, see FPL - FPL Sources of Generation - Nuclear Operations - Nuclear Regulatory Developments. NEER's nuclear facilities are subject to the same NRC requirements as described for FPL. Duane Arnold is NEER's only boiling water reactor unit. NEER is currently working with the NRC on the approval and implementation of actions required to meet new NRC requirements, the costs of which are included in estimated capital expenditures. See Note 13 - Commitments.

Solar Facilities

~~At December 31, 2014, NEER had~~ ownership interests in and operated the majority of PV and solar thermal facilities with a total net generating capacity of ~~approximately 742~~2,108 MW ~~which are~~ at December 31, 2016;

located in 411 states in the U.S., 1 province in Canada and 1 province in ~~Canada. During 2014, NEER completed~~Spain;

essentially all MW is from contracted solar facilities located primarily throughout the ~~construction~~West region of ~~a 20~~the U.S.;

added approximately 980 MW ~~solar PV project~~ in ~~Nevada, a 250 MW solar thermal project~~the U.S. in ~~California~~2016; and ~~a 550 MW solar PV project in California, in which NEER has a 50% equity investment. NEER is currently planning~~

expects to add new contracted solar generation of approximately 400 to 1,300 MW in ~~2015~~2017 to 2018.

Fossil Facilities

ownership interests in and ~~2016 totaling approximately 960 MW. In addition, NEER and its affiliates own solar thermal~~operated natural gas generation facilities with a total net generating capacity of ~~99.8~~420 MW at December 31, 2016; approximately 262 MW is contracted and 158 MW is merchant; located in ~~Spain (Spain solar projects). See~~3 states in the Northeast region of the U.S.;

completed the sales of its ownership interests in merchant natural gas generation facilities located in Texas with a total generating capacity of 2,884 MW and in natural gas generation facilities located primarily in Pennsylvania with a total generating capacity of 840 MW (see Note 131 - ~~Spain Solar Projects~~Assets and Liabilities Associated with Assets Held for ~~developments that impact the Spain solar projects.~~Sale); and

owned, or had undivided interests in, and operated oil-fired peak generation facilities with a total generating capacity of 781 MW at December 31, 2016 primarily located in Maine.

~~Other Assets~~Nuclear Facilities

At December 31, ~~2014,~~2016, NEER owned, or had ~~796 MW~~undivided interests in, and operated the following four nuclear units with a total net generating capacity of ~~oil-fired generating~~2,721 MW. NEER's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages

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typically require the unit to be removed from service for variable lengths of time.



Facility	Location	NEER's Ownership (MW)	Portfolio Category	Next Scheduled Refueling Outage	Operating License Expiration Dates
Seabrook	New Hampshire	1,100	Merchant	April 2017	2030^(a)
Duane Arnold	Iowa	431	Contracted^(b)	September 2018	2034
Point Beach Unit No. 1	Wisconsin	595	Contracted^(c)	October 2017	2030
Point Beach Unit No. 2	Wisconsin	595	Contracted^(c)	March 2017	2033

______________________


(a)	In 2010, NEER filed an application with the NRC to renew Seabrook's operating license for an additional 20 years, which license renewal is dependent on NRC regulatory approvals.


(b)	NEER sells all of its share of the output of Duane Arnold under a long-term contract expiring in December 2025.


(c)	NEER sells all of the output of Point Beach Units Nos. 1 and 2 under long-term contracts through their current operating license expiration dates.

NEER is responsible for all nuclear unit operations and the ultimate decommissioning of the nuclear units, the cost of which is shared on a pro-rata basis by the joint owners for the jointly-owned units. NRC regulations require plant owners to submit a plan for decontamination and decommissioning five years before the projected end of plant operation.

NEER's nuclear facilities ~~located in Maine.~~use both on-site storage pools and dry storage casks to store spent nuclear fuel generated by these facilities, which are expected to provide sufficient storage of spent nuclear fuel at these facilities through license expiration.

Policy Incentives for Renewable Energy Projects

U.S. federal, state and local governments have established various incentives to support the development of renewable energy projects. These incentives include accelerated tax depreciation, PTCs, ITCs, cash grants, tax abatements and RPS programs. Wind and solar projects qualify ~~for~~as five-year property that is eligible to be depreciated under the U.S. federal Modified Accelerated Cost Recovery System ~~depreciation schedule. This schedule allows a taxpayer~~(MACRS). Pursuant to ~~recognize the depreciation of tangible property on~~MACRS, wind and solar projects are fully depreciated for tax purposes over a five-year ~~basis~~period even though the useful life of such ~~property~~projects is generally ~~greater~~much longer than five years. ~~The PTC currently provides~~

Owners of utility-scale wind facilities are eligible to claim an income tax credit ~~for~~(the PTC, or an ITC in lieu of the ~~production~~PTC) upon initially achieving commercial operation. The PTC is determined based on the amount of electricity ~~from utility-scale~~produced by the wind ~~turbines for~~facility during the first ten years of commercial operation. This incentive was created under the Energy Policy Act of 1992 and ~~under~~has been extended several times. Alternatively, an ITC equal to 30% of the ~~Tax Increase Prevention Act~~cost of ~~2014,~~a wind facility may be claimed in lieu of the PTC. In December 2015, the PTC (and ITC in lieu of PTC) for wind facilities was extended for ~~wind projects whose construction began before January 1, 2015. The Internal Revenue Service (IRS) previously issued guidance related~~five years, subject to ~~which projects will~~the phase-down schedule in the table below. In order to qualify for the PTC ~~including, among other things, criteria for the beginning~~(or ITC in lieu of PTC), construction of a ~~project~~wind facility must begin before a specified date. The IRS previously issued guidance setting forth two alternatives pursuant to which a taxpayer may begin construction on a wind facility and providing that the taxpayer must maintain a continuous program of construction or ~~the~~ continuous efforts to advance the project to completion. ~~Pursuant~~In May 2016, the IRS issued additional guidance relating to the IRS guidance, NEER expects its projects currently in development or under construction in the U.S. will qualify for the PTC. Alternatively, wind project developers can choose to receive a 30% ITC, in lieuDecember 2015 extension and phase-down of the PTC ~~with~~and ITC for wind facilities. In general, this guidance modifies and extends the ~~same requirement that~~safe harbor for the continuous efforts and continuous construction requirements to four years compared to two years under the previous guidance. The safe harbor will generally be satisfied if the facility is placed in service no more than four calendar years after the calendar year in which construction of the ~~wind project began before January 1, 2015.~~facility began. The IRS ~~has not updated its guidance~~also confirmed that retrofitted wind facilities may re-qualify for PTCs or ITCs pursuant to the 5% safe harbor for the ~~change in law extending~~begin construction requirement, as long as the ~~requirement for a wind project to be under construction from 2013 to 2014.~~cost basis of the new investment is at least 80% of the facility’s total fair value.

~~Solar project developers~~Owners of solar projects are ~~also~~ eligible to ~~receive~~claim a 30% ITC for new solar projects, ~~that achieve commercial operation before 2017. Solar project developers~~or can elect to receive an equivalent cash payment from the U.S. Department of Treasury for the value of the 30% ITC (convertible ITC) for qualifying solar projects where construction began before the end of 2011 and the projects are placed in service before 2017. ~~Solar~~In December 2015, the 30% ITC for new solar projects ~~that achieve commercial operations after December 31, 2016 may qualify for an ITC of 10% of eligible installed costs.~~was extended, subject to the following phase-down schedule.

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	Year construction of project begins
	2015		2016		2017		2018		2019		2020		2021		2022
PTC^(a)	100	%	100	%	80	%	60	%	40	%	-		-		-
Wind ITC	30	%	30	%	24	%	18	%	12	%	-		-		-
Solar ITC^(b)	30	%	30	%	30	%	30	%	30	%	26	%	22	%	10	%

_________________________


(a)	Percentage of the full PTC available for wind projects that begin construction during the applicable year.


(b)	ITC is limited to 10% for projects not placed in service before January 1, 2024.

Other countries, including Canada and Spain, provide for incentives like feed-in-tariffs for renewable energy projects. The feed-in-tariffs promote renewable energy investments by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology. ~~See Note 13 - Spain Solar Projects~~

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MARKETS AND COMPETITION

Electricity markets in the U.S. and Canada are regional and diverse in character. All are extensively regulated, and competition in these markets is shaped and constrained by regulation. The nature of the products offered varies based on the specifics of regulation in each region. Generally, in addition to the natural constraints on pricing freedom presented by competition, NEER may also face specific constraints in the form of price caps, or maximum allowed prices, for ~~developments~~certain products. NEER's ability to sell the output of its generation facilities may also be constrained by available transmission capacity, which can vary from time to time and can have a significant impact on pricing.

The degree and nature of competition that NEER faces is different in ~~Spain.~~wholesale markets and in retail markets. During 2016, approximately 86% of NEER's revenue was derived from wholesale electricity markets.

Wholesale power generation is a capital-intensive, commodity-driven business with numerous industry participants. NEER primarily competes on the basis of price, but believes the green attributes of NEER's generation assets, its creditworthiness and its ability to offer and manage reliable customized risk solutions to wholesale customers are competitive advantages. Wholesale power generation is a regional business that is highly fragmented relative to many other commodity industries and diverse in terms of industry structure. As such, there is a wide variation in terms of the capabilities, resources, nature and identity of the companies NEER competes with depending on the market. In wholesale markets, customers' needs are met through a variety of means, including long-term bilateral contracts, standardized bilateral products such as full requirements service and customized supply and risk management services.

In general, U.S. electricity markets encompass three classes of services: energy, capacity and ancillary services. Energy services relate to the physical delivery of power; capacity services relate to the availability of MW capacity of a power generation asset; and ancillary services are other services that relate to power generation assets, such as load regulation and spinning and non-spinning reserves. The exact nature of these classes of services is defined in part by regional tariffs. Not all regions have a capacity services class, and the specific definitions of ancillary services vary from region to region.

RTOs and ISOs exist throughout much of North America to coordinate generation and transmission across wide geographic areas and to run markets. NEER operates in all RTO and ISO jurisdictions. As of December 31, 2016, NEER also had operations of approximately 3,114 MWs that fall within reliability regions that are not under the jurisdiction of an established RTO or ISO, including 2,519 MWs within the Western Electricity Coordinating Council. Although each RTO and ISO may have differing objectives and structures, some benefits of these entities include regional planning, managing transmission congestion, developing larger wholesale markets for energy and capacity, maintaining reliability and facilitating competition among wholesale electricity providers. NEER has operations that fall within the following RTOs and ISOs:

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NEER ~~CUSTOMER SUPPLY AND PROPRIETARY POWER AND GAS TRADING~~

competes in different regions to different degrees, but in general it seeks to enter into long-term bilateral contracts for the full output of its generation facilities, and, as of December 31, 2016, approximately 80% of NEER's ~~customer supply and proprietary power and gas trading businesses engage~~generating capacity was committed under long-term contracts. Where long-term contracts are not in ~~energy-related commodity marketing and trading activities, provide commodities-related products to customers and include the operations of a retail electricity provider. PMI, a subsidiary of~~effect, NEER ~~buys and sells wholesale energy commodities, such as electricity, natural gas and oil. PMI~~ sells the output of its facilities into daily spot markets. In such cases, NEER will frequently enter into shorter term bilateral contracts, typically of less than three years duration, to hedge the price risk associated with selling into a daily spot market. Such bilateral contracts, which may be hedges either for physical delivery or for financial (pricing) offset, may only protect a portion of the revenue that NEER expects to derive from ~~NEER's~~the associated generation facility and may not qualify for hedge accounting under GAAP. Contracts that serve the economic purpose of hedging some portion of the expected revenue of a generation facility but are not recorded as hedges under GAAP are referred to as “non-qualifying hedges” for adjusted earnings purposes. See Management's Discussion - Overview - Adjusted Earnings.

Certain facilities within the NEER wind and solar generation portfolio produce RECs and other environmental attributes which are typically sold along with the energy from the plants ~~that is~~under long-term contracts, or may be sold separately for the wind and solar generation not sold under long-term ~~contracts~~contracts. The purchasing party is solely entitled to the reporting rights and ~~procures~~ownership of the ~~fossil fuel for use by~~environmental attributes.

While the majority of NEER's ~~generation fleet. One~~revenue is derived from the output of its ~~primary roles~~generation facilities, NEER is also an active competitor in several regions in the wholesale full requirements business and in providing structured and customized power and fuel products and services to ~~manage~~a variety of customers. In the ~~commodity~~full requirements service, typically, the supplier agrees to meet the customer's needs for a full range of products for every hour of the day, at a fixed price, for a predetermined period of time, thereby assuming the risk of ~~NEER's portfolio. PMI uses derivative instruments such as swaps, options, futures~~fluctuations in the customer's volume requirements.

Expanded competition in a frequently changing regulatory environment presents both opportunities and ~~forwards~~risks for NEER. Opportunities exist for the selective acquisition of generation assets and for the construction and operation of efficient facilities that can sell power in competitive markets. NEER seeks to ~~manage the~~reduce its market risk ~~associated with fluctuating commodity prices~~by having a diversified portfolio by fuel type and to optimize the value of NEER's power generation and gas infrastructure assets. PMI also markets and trades energy-related commodity products and provides a wide range of electricity and gas commodity productslocation, as well as ~~marketing and trading services to customers. PMI's customer supply business provides full energy and capacity requirements to customers.~~

~~The results~~by contracting for the future sale of a significant amount of the customer supply and proprietary power and gas trading activities are included in NEER's operating results. See Management's Discussion - Energy Marketing and Trading and Market Risk Sensitivity, Note 1 - Energy Trading and Note 3.electricity output of its facilities.

NEER REGULATION

The energy markets in which NEER operates are subject to domestic and foreign regulation, as the case may be, including local, state and federal regulation, and other specific rules.

At December 31, ~~2014,~~2016, NEER had ownership interests in operating independent power projects located in the U.S. that have received exempt wholesale generator status as defined under the Public Utility Holding Company Act of 2005, which represent approximately ~~97%~~99% of NEER's net generating capacity in the U.S. Exempt wholesale generators own or operate a facility exclusively to sell electricity to wholesale customers. They are barred from selling electricity directly to retail customers. NEER's exempt wholesale generators produce electricity from wind, fossil fuels, solar and nuclear facilities. Essentially all of the remaining 3%1% of NEER's net generating capacity has qualifying facility status under the PURPA. NEER's qualifying facilities generate electricity primarily from wind, solar and fossil fuels. Qualifying facility status exempts the projects from, among other things, many of the provisions of the Federal Power Act, as well as state laws and regulations relating to rates and financial or organizational regulation of electric utilities. While projects with qualifying facility and/or exempt wholesale generator status are exempt from various restrictions, each project must still comply with other federal, state and local laws, including, but not limited to, those regarding siting, construction, operation, licensing, pollution abatement and other environmental laws.

Additionally, most of the NEER facilities located in the U.S. are subject to FERC regulations and market rules and the NERC's mandatory reliability standards, all of its facilities are subject to environmental laws and the EPA's environmental ~~laws,~~regulations, and its nuclear facilities are also subject to the jurisdiction of the NRC. See FPL - FPL Regulation for additional discussion of FERC, NERC, NRC and EPA regulations. With the exception of facilities located in ERCOT, the FERC has jurisdiction over various aspects of NEER's business in the U.S., including the oversight and investigation of competitive wholesale energy markets, regulation of the transmission and sale of natural gas, and oversight of environmental matters related to natural gas projects and major electricity policy initiatives. The PUCT has jurisdiction, including the regulation of rates and services, oversight of competitive markets, and enforcement of statutes and rules, over NEER facilities located in ERCOT.

NEER and its affiliates are also subject to federal and provincial or regional regulations in Canada and Spain related to energy operations, energy markets and environmental standards. In Canada, activities related to owning and operating wind and solar projects and participating in wholesale and retail energy markets are regulated at the provincial level. In Ontario, for example, electricity generation facilities must be licensed by the Ontario Energy Board and may also be required to complete registrations and maintain market participant status with the Independent Electricity System Operator, in which case they must agree to be bound by and comply with the provisions of the market rules for the Ontario electricity market as well as the mandatory reliability standards of the NERC.

In addition, NEER is subject to environmental laws and regulations ~~and is affected by some of the emerging issues related to renewable energy resources~~ as described in the NEE Environmental Matters section below. In order to better anticipate potential regulatory changes, NEER continues to actively evaluate and participate in regional market redesigns of existing operating rules for the integration of renewable energy resources and for the purchase and sale of energy commodities.

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NEER EMPLOYEES

NEER and its subsidiaries had approximately ~~4,700~~5,300 employees at December 31, ~~2014.~~2016. Certain subsidiaries of NEER have collective bargaining agreements with the IBEW, the Utility Workers Union of America, the Security Police and Fire Professionals of America and the International Union of Operating Engineers, which collectively represent approximately ~~20%~~17% of NEER's employees. The collective bargaining agreements have ~~one-~~three- to ~~three-year~~five-year terms and expire between ~~late February 2015~~2018 and ~~2016.~~

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~~III. OTHER NEE OPERATING SUBSIDIARIES~~

Corporate and Other represents other business activities, primarily NEET and FPL FiberNet, that are not separately reportable. See Note 14. In addition, certain subsidiaries of NEECH are pursuing approvals to invest in, build, own and operate an approximately 600-mile natural gas pipeline system to provide new natural gas transportation infrastructure in Florida and an approximately 300-mile natural gas pipeline to connect the natural gas supply in the Marcellus and Utica shale regions with markets in the Southeast region of the U.S.

~~NEET~~

NEET, a wholly-owned subsidiary of NEECH, is a limited liability company organized under the laws of Delaware. NEET conducts its business primarily through two subsidiaries, Lone Star and NHT, and is pursuing opportunities to develop, build and operate new transmission facilities throughout North America. In 2013, an entity in which an affiliate of NEET has a joint venture investment was selected to complete development work for a 250-mile transmission line in Northwestern Ontario, Canada. Once development is complete, subject to Ontario Energy Board approval, the NEET affiliate, through its joint venture, is expected to construct, own and operate the new transmission line that is projected to begin service in 2020.

~~Lone Star~~

Lone Star, a rate-regulated transmission service provider in Texas, is a limited liability company organized under the laws of Delaware. Lone Star owns and operates approximately 330 miles of 345 kilovolt (kV) transmission lines and other associated facilities that were placed in service in 2012 and 2013. Lone Star is subject to regulation by a number of federal, state and other agencies, including, but not limited to, the PUCT, the ERCOT, the NERC and the EPA, as well as certain limited regulations of the FERC. See FPL - FPL Regulation for further discussion of FERC, NERC and EPA regulations and NEE Environmental Matters. The PUCT has jurisdiction over a wide range of Lone Star's business activities, including, among others, rates charged to customers and certain aspects of the operation of transmission systems. The PUCT sets rates at a level that allows Lone Star the opportunity to collect from customers total revenues (revenue requirements) equal to Lone Star's cost of providing service, including a reasonable rate of return on invested capital.

In September 2014, the PUCT approved a stipulation and settlement between Lone Star and all intervenors relating to Lone Star’s base rate petition. The stipulation and settlement provides for an annual revenue requirement of approximately $102 million based on a $694 million rate base, a regulatory equity ratio of 45%, an allowed regulatory ROE of 9.6% and certain operating expenses.

~~NHT~~

NHT, a rate-regulated transmission owner in ISO-NE, is a limited liability company organized under the laws of Delaware. NHT owns transmission facilities which connect NEER's Seabrook nuclear facility to the New England transmission grid and interconnect three 345 kV transmission lines in New England. NHT is subject to regulation by a number of federal, state and other agencies, including, but not limited to, the New Hampshire Public Utility Commission, ISO-NE, the FERC, the NERC and the EPA. See FPL - FPL Regulation for further discussion of FERC, NERC and EPA regulations and NEE Environmental Matters. NHT wholesale transmission revenues are provided through an ISO-NE tariff.

~~FPL FIBERNET~~

FPL FiberNet conducts its business through two separate wholly-owned subsidiaries of NEECH. One subsidiary was formed in 2000 to enhance the value of NEE's fiber-optic network assets that were originally built to support FPL operations and the other was formed in 2011 to hold fiber-optic network assets which were acquired. Both subsidiaries are limited liability companies organized under the laws of Delaware. FPL FiberNet leases fiber-optic network capacity and dark fiber to FPL and other customers, primarily telephone, wireless, internet and other telecommunications companies. FPL FiberNet's networks cover most of the metropolitan areas in Florida and several in Texas. FPL FiberNet also has a long-haul network providing bandwidth at wholesale rates. The long-haul network connects major cities in Florida and Texas with additional connectivity to Atlanta, Georgia, New York and the South Central U.S., including Arkansas, Louisiana and Oklahoma. At December 31, 2014, FPL FiberNet's network consisted of approximately 9,050 route miles. FPL FiberNet is subject to regulation by the Federal Communications Commission which has jurisdiction over wire and wireless communication networks and by the public utility commissions in the states in which it provides intrastate telecommunication services.

~~NATURAL GAS PIPELINE SYSTEMS~~

~~Florida Natural Gas Pipeline System~~

In 2013, FPL announced the winning proposals from its 2012 RFP for an approximately 600-mile natural gas pipeline system for new natural gas transportation infrastructure in Florida. The proposed pipeline system will be composed of two pipelines, each of which is expected to be operational beginning in mid-2017. Sabal Trail, which is 33% owned by a wholly-owned NEECH subsidiary

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and will be a FERC-regulated entity, was selected to build, own and operate the northern pipeline that would originate in southwestern Alabama and end at a new hub to be built in Central Florida (Central Florida Hub). Florida Southeast Connection, which is a wholly-owned NEECH subsidiary and will be a FERC-regulated entity, was selected to build, own and operate the southern pipeline that would originate at the Central Florida Hub and end in Martin County, Florida at FPL's Martin power plant.

Total estimated capital expenditures for the 33% portion of the northern pipeline plus the entire southern pipeline are estimated to be approximately $1.5 billion. At December 31, 2014, NEE's investment in the proposed pipeline system totaled approximately $103 million. The obligations of Sabal Trail and Florida Southeast Connection to build and operate the northern pipeline and southern pipeline, respectively, are subject to certain conditions, including FERC approval. A FERC decision is expected by the end of 2015.

~~See FPL - FPL Sources of Generation - Fossil Operations and Note 13 - Commitments and - Contracts.~~

~~Mountain Valley Pipeline~~

In October 2014, a wholly-owned NEECH subsidiary committed to make an equity investment in a joint venture which plans to construct an approximately 300-mile natural gas pipeline to connect the natural gas supply in the Marcellus and Utica shale regions with markets in the Southeast region of the U.S. Based on the NEECH subsidiary's expected ownership share, expected equity contributions by the NEECH subsidiary are approximately $1.0 billion to $1.3 billion depending on the ultimate size and scope of the natural gas pipeline project. The pipeline is expected to be placed in service by the end of 2018. Construction of the natural gas pipeline is subject to certain conditions, including FERC approval.

NEE ENVIRONMENTAL MATTERS

NEE and FPL are subject to domestic and foreign environmental laws and regulations, including extensive federal, state and local environmental statutes, rules and ~~regulations.~~regulations, for the siting, construction and ongoing operations of their facilities. The ~~following is a discussion~~U.S. Congress and certain states and regions, as well as the Government of ~~certain existing and emerging federal and state initiatives and rules, some of which could potentially have a material effect (either positive or negative) on NEE~~Canada and its ~~subsidiaries. FPL expects~~provinces, have taken and continue to ~~seek recovery through~~take certain actions, such as proposing and finalizing regulation or setting targets or goals, regarding the ~~environmental clause for compliance costs associated with any new environmental laws and regulations.~~

~~Clean Water Act Section 316(b).~~ ~~In May 2014, the EPA issued its final rule under Section 316(b)~~reduction of the Clean Water Act outlining the process and framework for determining the Best Technology Available to reduce the impact on aquatic organisms from once-through cooling water intake systems. Under the rule, potentially eleven of FPL's facilities and five of NEER's facilities may be required to add additional controls and/or make operational changes to comply. NEE and FPL are analyzing the final rule,GHG emissions and the ~~ultimate impacts will evolve over years~~increase of site specific studies, permit evaluations and negotiations. Therefore, the impact of any final compliance obligations is uncertain at this time. During the third quarter of 2014, several groups filed petitions for review of the EPA's final rule and the U.S. Court of Appeals for the Second Circuit will hear the case.

~~Avian/Bat Regulations and Wind Turbine Siting Guidelines.~~renewable energy generation. Numerous environmental regulations also affecting FPL, NEER and ~~NEET are subject to numerous environmental regulations and guidelines related~~certain other subsidiaries relate to threatened and endangered species and their habitats, as well as other avian and bat ~~species, for the siting, construction and~~ongoing operations of their facilities. The facilities most significantly affected are wind and solar facilities and transmission and distribution lines. The environmental laws in the U.S., including, among others, the Endangered Species Act, the Migratory Bird Treaty Act, and the Bald and Golden Eagle Protection Act and similar environmental laws in Canada provide for the protection of migratory birds, eagles and bats and endangered species of birds and bats and their habitats. Regulations have been adopted under some of these laws that contain provisions that allow the owner/operator of a facility to apply for a permit to undertake specific activities including those associated with certain siting decisions, construction activities and operations. In addition to regulations, voluntary wind turbine siting guidelines established by the U.S. Fish and Wildlife Service set forth siting, monitoring and coordination protocols that are designed to support wind development in the U.S. while also protecting both birds and bats and their habitats. These guidelines include provisions for specific monitoring and study conditions which need to be met in order for projects to be in adherence with these voluntary guidelines.species. Complying with these environmental laws and regulations ~~and adhering to the provisions set forth~~results in, among other things, changes in the ~~voluntary wind turbine siting guidelines could result in additional costs or reduced revenues at existing~~design and ~~new wind and solar facilities and transmission and distribution facilities at FPL, NEER and NEET and, in the case~~operation of ~~environmental regulations, failure to comply could result in fines and penalties.~~

•

~~Regulation of GHG Emissions.~~ The U.S. Congress and certain states and regions continue to consider several legislative and regulatory proposals with respect to GHG emissions. The Government of Canada and its provinces are also taking certain actions, such as setting targets or goals, regarding the increase of renewable energy generation and the reduction of GHG emissions. The economic and operational impact of climate change legislation on NEE and FPL depends on a variety of factors, including, but not limited to, whether states choose a rate-based or mass-based (based on pounds of CO₂) approach for the distribution of allowances, the allowed emissions cap, whether emission allowances will be allocated or auctioned, the cost to reduce emissions or buy allowances in the marketplace and the availability of offsets and mitigating factors to moderate the costs of compliance. Based on the most recent reference data available from government sources, NEE is among the lowest emitters, among electric generators, of GHG in the U.S. measured by its rate of emissions expressed as pounds of CO₂ per MWh of generation. However, the legislative and regulatory proposals have differing methods of implementation and the impact on FPL's and NEER's generating units and/or the financial impact (either positive or negative) to NEE and FPL could be material,

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~~depending on the eventual structure of any specific implementation rules adopted.~~

In 2013, the EPA re-proposed standards for new fossil fuel-fired power units pursuant to a Presidential Memorandum related to the regulation of GHG emissions. The Presidential Memorandum also directed the EPA to issue a final rule for new fossil fuel-fired power units after considering all public comments and to propose a rule for existing fossil fuel-fired power units by June 2014 with a final rule by June 2015. In June 2014, as directed in the Presidential Memorandum, the EPA issued a proposed rule under Section 111(d) of the Clean Air Act to reduce carbon emissions from existing fossil fuel-fired power units. The proposed rule, named the Clean Power Plan, sets emission rate targets for each state and requires each state to develop a compliance plan by the summer of 2016 to meet these emissions targets. The proposed rule indicates that official compliance will start in 2020 with both interim and final target dates, each with specific emissions reductions. NEE and FPL are analyzing the proposed rule and the impact of any final compliance obligations is uncertain at this time. A final rule is expected in the summer of 2015.

NEER's plants operate in certain states and regions in the U.S. and provinces in Canada that continue to consider and implement regulatory proposals to reduce GHG emissions. RPS, currently in place in approximately 30 states and the District of Columbia, require electricity providers in the state or district to meet a certain percentage of their retail sales with energy from renewable sources. These standards vary, but the majority include requirements to meet 20% to 25% of the electricity providers' retail sales with energy from renewable sources by 2025. Approximately 7 other states in the U.S. have set renewable energy goals as well. Many Canadian provinces have enacted renewable energy goals and targets to reduce GHG emissions from historic levels which include various milestones and compliance mechanisms. NEER's plants operate in 24 states in the U.S. and 4 provinces in Canada that have a RPS or renewable energy goals and NEER believes that these standards and goals will create incremental demand for renewable energy in the future.

Other GHG reduction initiatives including, among others, the Regional Greenhouse Gas Initiative and the California Greenhouse Gas Regulation aim to reduce emissions through a variety of programs and under varying timelines. Based on its clean generating portfolio, NEER expects to continue experiencing a positive impact on earnings as a result of these GHG reduction initiatives. Additionally, these initiatives provide NEER opportunities with regards to wind and solar development as well as favorable energy pricing.

~~Waters of the U.S.~~ In March 2014, the EPA issued a proposed rule redefining "waters of the U.S." under the Clean Water Act to expand the definition of waters of the U.S. to encompass previously unregulated waters, such as intermittent streams, non-navigable tributaries, isolated wetlands and adjacent other waters. Under the proposed rule, subsidiaries of NEE could incur increased costs for siting and permitting new projects or when maintaining or making modifications to existing facilities and ~~transmission~~changes or delays in the location, design, construction and ~~distribution lines.~~operation of new facilities. The ~~ultimate economic and operational~~ impact of ~~the provisions of the~~complying with current environmental laws and regulations has not had, and, along with compliance with proposed ~~rule cannot be determined at this time. A final rule~~regulations as currently written, is not expected ~~before~~to have, a material adverse effect on the ~~second quarter~~financial statements of ~~2015.~~NEE and FPL. As permitted by the environmental clause, FPL expects to seek recovery for compliance costs associated with any new environmental laws and regulations.

WEBSITE ACCESS TO 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-K. 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.

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EXECUTIVE OFFICERS OF NEE^(a)



Name	Age	Position	Effective Date
Miguel Arechabala	5456	Executive Vice President, Power Generation Division of NEE Executive Vice President, Power Generation Division of FPL	January 1, 2014
Deborah H. Caplan	5254	Executive Vice President, Human Resources and Corporate Services of NEE Executive Vice President, Human Resources and Corporate Services of FPL	April 15, 2013
Terrell Kirk Crews, II	38	Vice President, Controller and Chief Accounting Officer of NEE	September 19, 2016
Paul I. Cutler	5557	Treasurer of NEE Treasurer of FPL Assistant Secretary of NEE	February 19, 2003 February 18, 2003 December 10, 1997
~~Moray P. Dewhurst~~	59	~~Vice Chairman and Chief Financial Officer, and Executive Vice President - Finance of NEE~~ ~~Executive Vice President, Finance and Chief Financial Officer of FPL~~	~~October 5, 2011~~
~~Chris N. Froggatt~~	57	~~Vice President, Controller and Chief Accounting Officer of NEE~~	~~February 27, 2010~~
Joseph T. Kelliher	5456	Executive Vice President, Federal Regulatory Affairs of NEE	May 18, 2009
John W. Ketchum	46	Executive Vice President, Finance and Chief Financial Officer of NEE Executive Vice President, Finance and Chief Financial Officer of FPL	March 4, 2016
Manoochehr K. Nazar	6062	President Nuclear Division and Chief Nuclear Officer of NEE President Nuclear Division and Chief Nuclear Officer of FPL	May 23, 2014 May 30, 2014
Armando Pimentel, Jr.	5254	President and Chief Executive Officer of NEER	October 5, 2011
James L. Robo	5254	Chairman, President and Chief Executive Officer of NEE Chairman of FPL	December 13, 2013 May 2, 2012
Charles E. Sieving	4244	Executive Vice President & General Counsel of NEE Executive Vice President of FPL	December 1, 2008 January 1, 2009
Eric E. Silagy	4951	President and Chief Executive Officer of FPL	May 30, 2014
William L. Yeager	5658	Executive Vice President, Engineering, Construction &and Integrated Supply Chain of NEE Executive Vice President, Engineering, Construction &and Integrated Supply Chain of FPL	January 1, 2013

______________________

(a)

Information is as of February ~~20, 2015~~23, 2017. Executive officers are elected annually by, and serve at the pleasure of, their respective boards of directors. Except as noted below, each officer has held his/her present position for five years or more and his/her employment history is continuous. Mr. Arechabala was president of NextEra Energy España, S.L., an indirect ~~wholly-owned~~wholly owned subsidiary of NEE, from February 2010 to December 2013. Ms. Caplan was vice president and chief operating officer of FPL from May 2011 to April 2013. Mr. Crews served as NEE’s Vice President, Finance from April 2016 to September 2016. From July 2015 to April 2016, he was a Partner in the national office of Deloitte & Touche LLP (Deloitte); from June 2013 to June 2015, he served as a professional accounting fellow in the Office of the Chief Accountant of the SEC; and ~~vice president, integrated supply chain~~from June 2010 to June 2013, he was an audit service senior manager at Deloitte. Mr. Ketchum served as NEE’s Senior Vice President, Finance from February 2015 to March 2016, and Senior Vice President, Business Management and Finance from December 2013 to February 2015. From December 2012 to December 2013, he was Senior Vice President, Business Management of ~~NEE~~NEER and ~~FPL~~Vice President, General Counsel & Secretary of NEER from ~~July 2005 to May 2011. Mr. Dewhurst has been vice chairman of NEE since August 2009 and was chief of staff of NEE from August~~June 2009 to ~~October 2011. Mr. Dewhurst has announced his intention to retire from NEE and FPL in the spring of 2016. Mr. Froggatt has been vice president of NEE since October 2009.~~December 2012. Mr. Nazar has been chief nuclear officer of NEE and FPL since January 2010 and was executive vice president, nuclear division of NEE and FPL from January 2010 to May 2014. ~~Mr. Pimentel was chief financial officer of NEE and FPL from May 2008 to October 2011 and executive vice president, finance of NEE and FPL from February 2008 to October 2011.~~ Mr. Robo has been president and chief executive officer of NEE since July 2012. Mr. Robo was the chief executive officer of FPL from May 2012 to May 2014 and president and chief operating officer of NEE from December 2006 to June 2012. Mr. ~~Sieving was also assistant secretary of NEE from May 2010 to May 2011 and general counsel of FPL from January 2009 to May 2010. Mr.~~ Silagy has been president of FPL since December 2011. Mr. Silagy was senior vice president, regulatory and state governmental affairs of FPL from May 2010 to December 2011 and vice president and chief development officer of FPL from July 2008 to May 2010. Mr. Yeager was vice president, engineering, construction and integrated supply chain services of NEE and FPL from October 2012 to December 2012 and vice president, integrated supply chain of NEE and FPL from May 2011 to October 2012. ~~From January 2005 to May 2011, Mr. Yeager was vice president, engineering and construction of FPL.~~

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Item 1A. Risk Factors

Risks Relating to NEE's and FPL's Business

The business, financial condition, results of operations and prospects of NEE and FPL are subject to a variety of risks, many of which are beyond the control of NEE and FPL. ~~The following is a description of important~~These risks, as well as additional risks and uncertainties either not presently known or that are currently believed to not be material to the business, may materially adversely affect the business, financial condition, results of operations and prospects of NEE and FPL and may cause actual results of NEE and FPL to differ substantially from those that NEE or FPL currently expects or seeks. In that event, the market price for the securities of NEE or FPL could decline. Accordingly, the risks described below should be carefully considered together with the other information set forth in this report and in future reports that NEE and FPL file with the SEC. The risks described below are not the only risks facing NEE and FPL. Additional risks and uncertainties may also materially adversely affect NEE's or FPL's business, financial condition, results of operations and prospects. Each of NEE and FPL has disclosed the material risks known to it to affect its business at this time. However, there may be further risks and uncertainties that are not presently known or that are not currently believed to be material that may in the future materially adversely affect the business, financial condition, results of operations or prospects of NEE and FPL.

Regulatory, Legislative and Legal Risks

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

The operations of NEE and FPL are subject to complex and comprehensive federal, state and other regulation. This extensive regulatory framework, portions of which are more specifically identified in the following risk factors, regulates, among other things and to varying degrees, NEE's and FPL's industries, businesses, rates and cost structures, operation and licensing of nuclear power facilities, construction and operation of electricity generation, transmission and distribution facilities and natural gas and oil production, natural gas, oil and other fuel transportation, processing and storage facilities, acquisition, disposal, depreciation and amortization of facilities and other assets, decommissioning costs and funding, service reliability, wholesale and retail competition, and commodities trading and derivatives transactions. In their business planning and in the management of their operations, NEE and FPL must address the effects of regulation on their business and any inability or failure to do so adequately could have a material adverse effect on their 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 if they are unable to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise.

FPL is ~~a regulated entity~~an electric utility subject to the jurisdiction of the FPSC over a wide range of business activities, including, among other items, the retail rates charged to its customers through base rates and cost recovery clauses, the terms and conditions of its services, procurement of electricity for its customers and fuel for its plant operations, issuances of securities, and aspects of the siting, construction and operation of its ~~generating~~generation plants and transmission and distribution systems for the sale of electric energy. The FPSC has the authority to disallow recovery by FPL of costs that it considers excessive or imprudently incurred and to determine the level of return that FPL is permitted to earn on invested capital. The regulatory process, which may be adversely affected by the political, regulatory and economic environment in Florida and elsewhere, limits or could otherwise adversely impact FPL's ~~ability to increase earnings and~~earnings. The regulatory process also does not provide any assurance as to achievement of authorized or other earnings ~~levels.~~levels, or that FPL will be permitted to earn an acceptable return on capital investments it wishes to make. NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected if any material amount of costs, a return on certain assets or a reasonable return on invested capital cannot be recovered through base rates, cost recovery clauses, other regulatory mechanisms or otherwise. Certain ~~subsidiaries of NEET, which are indirect wholly-owned~~other subsidiaries of NEE are ~~regulated electric~~ transmission utilities subject to the jurisdiction of their regulators and are subject to similar risks.

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

The local and national political, regulatory and economic environment has had, and may in the future have, an adverse effect on FPSC decisions with negative consequences for FPL. These decisions may require, for example, FPL to cancel or delay planned development activities, to reduce or delay other planned capital expenditures or to pay for investments or otherwise incur costs that it may not be able to recover through rates, each of which could have a material adverse effect on the business, financial condition, results of operations and prospects of NEE and FPL. Certain other subsidiaries of ~~NEET~~NEE are subject to similar risks.

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 FPSC.

The FPSC engages in an annual prudence review of FPL's use of derivative instruments in its risk management fuel procurement program and should it find any such use to be imprudent, the FPSC could deny cost recovery for such use by FPL. Such an outcome could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.

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Any reductions or modifications to, or the elimination of, governmental incentives or policies that support utility scale renewable energy, including, but not limited to, tax laws, policies and incentives, RPS, or feed-in tariffs or the Clean Power Plan, or the imposition of additional taxes or other assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy projects, NEER abandoning

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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.

NEER depends heavily on government policies that support utility scale renewable energy and enhance the economic feasibility of developing and operating wind and solar energy projects in regions in which NEER operates or plans to develop and operate renewable energy facilities. The federal government, a majority of the 50 U.S. states and portions of Canada and Spain provide incentives, such as tax incentives, RPS, or feed-in tariffs or the Clean Power Plan, that support or are designed to support the sale of energy from utility scale renewable energy facilities, such as wind and solar energy facilities. As a result of budgetary constraints, political factors or otherwise, governments from time to time may review their laws and policies that support renewable energy and consider actions that would make the laws and policies less conducive to the development and operation of renewable energy facilities. Any reductions or modifications to, or the elimination of, governmental incentives or policies that support renewable energy ~~such as those reductions that have been enacted in Spain and are applicable to NEER's solar generating facilities in that country,~~ or the imposition of additional taxes or other assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy projects, NEER abandoning the development of renewable energy projects, a loss of NEER's investments in the 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 is influenced by various legislative and regulatory initiatives, including, but not limited to, new or revised laws, including international trade laws, regulations, or interpretations orand other regulatory initiatives regarding deregulation or restructuring of the energy industry, regulation of the commodities trading and derivatives markets, and regulation of environmental ~~regulation,~~matters, such as regulation of air emissions, regulation of water consumption and water discharges, and regulation of gas and oil infrastructure operations, as well as associated environmental permitting. Changes in the nature of the regulation of NEE's and FPL's business could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects. NEE and FPL are unable to predict future legislative or regulatory changes, initiatives or interpretations, although any such changes, initiatives or interpretations may increase costs and competitive pressures on NEE and FPL, which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

FPL has limited competition in the Florida market for retail electricity customers. Any changes in Florida law or regulation which introduce competition in the Florida retail electricity market, such as government incentives that facilitate the installation of solar ~~generating~~generation facilities on residential or other rooftops at below cost or that are otherwise subsidized by non-participants, or would permit third-party sales of electricity, could have a material adverse effect on FPL's business, financial condition, results of operations and prospects. There can be no assurance that FPL will be able to respond adequately to such regulatory changes, which could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.

NEER is subject to FERC rules related to transmission that are designed to facilitate competition in the wholesale market on practically a nationwide basis by providing greater certainty, flexibility and more choices to wholesale power customers. NEE cannot predict the impact of changing FERC rules or the effect of changes in levels of wholesale supply and demand, which are typically driven by factors beyond NEE's control. There can be no assurance that NEER will be able to respond adequately or sufficiently quickly to such rules and developments, or to any other changes that reverse or restrict the competitive restructuring of the energy industry in those jurisdictions in which such restructuring has occurred. Any of these events could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

~~NEE's~~NEE’s and ~~FPL's business,~~FPL’s OTC financial ~~condition, results of operations and prospects could be materially adversely affected if the~~derivatives are subject to 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 OTC financial derivatives~~ and ~~make certain provisions applicable~~similar international regulations that are designed to ~~NEE~~promote transparency, mitigate systemic risk and ~~FPL.~~

~~The Dodd-Frank Act, enacted into law in July 2010 provides for, among other things, substantially increased regulation of the OTC derivatives~~protect against market and futures contract markets. While the legislation is broad and detailed, there are still portions of the legislation that either require implementing rules to be adopted by federal governmental agencies or otherwise require further interpretive guidance.

NEE and FPL continue to monitor the development of rules related to the Dodd-Frank Act and have taken steps to comply with those rules that affect their businesses. While a number of rules have been finalized and are effective, the rules related to margin requirements for OTC derivatives have yet to be 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 adversely affected.

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abuse. NEE and FPL cannot predict the impact ~~these~~any proposed or not fully implemented final rules will have on their ability to hedge their commodity and interest rate risks or on OTC derivatives markets as a whole, but ~~they~~such rules and regulations could ~~potentially~~ have a material adverse effect on NEE's and FPL's risk exposure, as well as reduce market liquidity and further increase the cost of hedging activities.

NEE and FPL are subject to numerous environmental laws, regulations and other standards that may result in capital expenditures, increased operating costs and various liabilities, and may require NEE and FPL to limit or eliminate certain operations.

NEE and FPL are subject to domestic and foreign environmental laws, regulations and ~~regulations,~~other standards, including, but not limited to, extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality and usage, climate change, emissions of greenhouse gases, including, but not limited to, CO₂, waste management, hazardous wastes, marine, avian and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health (including, but not limited to, electric and magnetic fields from power lines and substations), safety and RPS, that could, among other things, prevent or delay the development of power generation, power or natural gas transmission, or other infrastructure projects, restrict the output of some existing facilities, limit the availability and use of some fuels required for the production of electricity, require additional pollution control equipment, and otherwise increase costs, increase capital expenditures and limit or eliminate certain operations.

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There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future as a result of new ~~legislation, the current trend toward more stringent standards,~~requirements and stricter ~~and~~or more expansive application of existing environmental regulations. For example, among other new, potential or pending changes are federal regulation of CO₂ emissions under the Clean Power Plan and state and federal regulation of the use of hydraulic fracturing or similar technologies to drill for natural gas and related compounds used by NEE's gas infrastructure ~~business is currently being discussed for regulation at state and federal levels.~~business.

Violations of current or future laws, rules, regulations or other standards could expose NEE and FPL to regulatory and legal proceedings, disputes with, and legal challenges by, third parties, and potentially significant civil fines, criminal penalties and other sanctions. Proceedings could include, for example, litigation regarding property damage, personal injury, common law nuisance and enforcement by citizens or governmental authorities of environmental requirements such as air, water and soil quality standards.

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.

Federal or state laws or regulations may be adopted that would impose new or additional limits on the emissions of greenhouse gases, including, but not limited to, CO₂ and methane, from electric ~~generating~~generation units using fossil fuels like coal and natural gas. Although it is currently subject to a stay issued by the U.S. Supreme Court, the Clean Power Plan is an example of such a new regulation at the federal level. The potential effects of ~~such~~ greenhouse gas emission limits on NEE's and FPL's electric ~~generating~~generation units are subject to significant uncertainties based on, among other things, the timing of the implementation of any new requirements, the required levels of emission reductions, the nature of any market-based or tax-based mechanisms adopted to facilitate reductions, the relative availability of greenhouse gas emission reduction offsets, the development of cost-effective, commercial-scale carbon capture and storage technology and supporting regulations and liability mitigation measures, and the range of available compliance alternatives.

While NEE's and FPL's electric ~~generating~~generation units emit greenhouse gases at a lower rate of emissions than most of the U.S. electric generation sector, the results of operations of NEE and FPL could be materially adversely affected to the extent that new federal or state laws or regulations impose any new greenhouse gas emission limits. Any future limits on greenhouse gas emissions could:

create substantial additional costs in the form of taxes or emission allowances;

make some of NEE's and FPL's electric ~~generating~~generation units uneconomical to operate in the long term;

require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or

affect the availability or cost of fossil fuels.

There can be no assurance that NEE or FPL would be able to completely recover any such costs or investments, which could have a material adverse effect on their business, financial condition, results of operations and prospects.

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

~~NEE~~NEE's and ~~FPL~~FPL's operations and businesses are subject to extensive federal regulation, which generally imposes significant and increasing compliance costs on ~~NEE's~~their operations and ~~FPL's operations.~~businesses. Additionally, any actual or alleged compliance failures could result in significant costs and other potentially adverse effects of regulatory investigations, proceedings, settlements, decisions and claims, including, among other items, potentially significant monetary penalties. As an example, under the Energy Policy Act of 2005, NEE and FPL, as owners and operators of bulk-power transmission systems and/or electric generation facilities, are subject to mandatory reliability standards. Compliance with these mandatory reliability standards may subject NEE and FPL to higher operating costs and may result in increased capital expenditures. If FPL or NEE is found not to be in compliance with these standards, it may incur substantial monetary penalties and other sanctions. Both the costs of regulatory compliance and the costs that may be imposed as a result of any actual or alleged compliance failures could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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

NEE's and FPL's provision for income taxes and reporting of tax-related assets and liabilities require significant judgments and the use of estimates. Amounts of tax-related assets and liabilities involve judgments and estimates of the timing and probability of recognition of income, deductions and tax credits, including, but not limited to, estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax credit carryforwards. Actual income taxes could vary significantly from estimated amounts due to the future impacts of, among other things, changes in tax laws, ~~regulations and interpretations,~~guidance or policies, including changes in corporate income tax rates, the financial condition and results of operations of NEE and FPL, and the resolution of audit issues raised by taxing authorities. ~~Ultimate~~These factors, including the ultimate resolution of income tax matters, may result in material adjustments to tax-related assets and liabilities, which could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

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

NEE's and FPL's business, financial condition, results of operations and prospects may be materially affected by adverse results of litigation. Unfavorable resolution of legal proceedings in which NEE is involved or other future legal proceedings, including, but not limited to, class action lawsuits, may have a material adverse effect on the business, financial condition, results of operations and prospects of NEE and FPL.

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's and FPL's ability to proceed with projects under development and to complete construction of, and capital improvement projects for, their electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms or on schedule, disputes involving contractors, labor organizations, land owners, governmental entities, environmental groups, Native American and aboriginal groups, lessors, joint venture partners and other third parties, negative publicity, transmission interconnection issues and other factors. If any development project or construction or capital improvement project is not completed, is delayed or is subject to cost overruns, certain associated costs may not be approved for recovery or otherwise be recoverable through regulatory mechanisms that may ~~otherwise~~ be available, and NEE and FPL could become obligated to make delay or termination payments or become obligated for other damages under contracts, could experience the loss of tax credits or tax incentives, or delayed or diminished returns, and could be required to write off all or a portion of their investment in the project. Any of these events could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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.

NEE and FPL own, develop, construct, manage and operate ~~electric-generating~~electric-generation and transmission facilities and natural gas transmission facilities. A key component of NEE's and FPL's growth is their ability to construct and operate generation and transmission facilities to meet customer needs. As part of these operations, NEE and FPL must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions. Should NEE or FPL be unsuccessful in obtaining necessary licenses or permits on acceptable terms, should there be a delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any associated investigations or enforcement actions or impose related penalties or disallowances on NEE or FPL, NEE's and FPL's business, financial condition, results of operations and prospects could be materially adversely affected. Any failure to negotiate successful project development agreements for new facilities with third parties could have similar results.

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

NEE's and FPL's electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities are subject to many operational risks. Operational risks could result in, among other things, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines for compliance failures, liability to third parties for property and personal injury damage, a failure to perform under applicable power sales agreements or other agreements and associated loss of revenues from terminated agreements or liability for liquidated damages under continuing agreements, and replacement equipment costs or an obligation to purchase or generate replacement power at higher prices.

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Uncertainties and risks inherent in operating and maintaining NEE's and FPL's facilities include, but are not limited to:

risks associated with facility start-up operations, such as whether the facility will achieve projected operating performance on schedule and otherwise as planned;

failures in the availability, acquisition or transportation of fuel or other necessary supplies;

the impact of unusual or adverse weather conditions and natural disasters, including, but not limited to, hurricanes, tornadoes, icing events, floods, earthquakes and droughts;

performance below expected or contracted levels of output or efficiency;

breakdown or failure, including, but not limited to, explosions, fires, leaks or other major events, of equipment, transmission and distribution lines or pipelines;

availability of replacement equipment;

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risks of property damage or human injury from energized equipment, hazardous substances or explosions, fires, leaks or other events;

availability of adequate water resources and ability to satisfy water intake and discharge requirements;

inability to identify, manage properly or mitigate equipment defects in NEE's and FPL's facilities;

use of new or unproven technology;

risks associated with dependence on a specific type of fuel or fuel source, such as commodity price risk, availability of adequate fuel supply and transportation, and lack of available alternative fuel sources;

increased competition due to, among other factors, new facilities, excess supply, shifting demand and ~~shifting demand;~~regulatory changes; and

insufficient insurance, warranties or performance guarantees to cover any or all lost revenues or increased expenses from the foregoing.

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.

Growth in customer accounts and growth of customer usage each directly influence the demand for electricity and the need for additional power generation and power delivery ~~facilities.~~facilities, as well as the need for energy-related commodities such as natural gas. Customer growth and customer usage are affected by a number of factors outside the control of NEE and FPL, such as mandated energy efficiency measures, demand side management requirements, and economic and demographic conditions, such as population changes, job and income growth, housing starts, new business formation and the overall level of economic activity. A lack of growth, or a decline, in the number of customers or in customer demand for electricity or natural gas and other fuels may cause NEE and FPL to fail to fully realize the anticipated benefits from significant investments and expenditures and could have a material adverse effect on NEE's and FPL's growth, business, financial condition, results of operations and prospects.

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.

Weather conditions directly influence the demand for electricity and natural gas and other fuels and affect the price of energy and energy-related commodities. In addition, severe weather and natural disasters, such as hurricanes, floods, tornadoes, icing events and earthquakes, can be destructive and cause power outages and property damage, reduce revenue, affect the availability of fuel and water, and require NEE and FPL to incur additional costs, for example, to restore service and repair damaged facilities, to obtain replacement power and to access available financing sources. Furthermore, NEE's and FPL's physical ~~plant~~plants could be placed at greater risk of damage should changes in the global climate produce unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, particularly relevant to FPL, a change in sea level. FPL operates in the east and lower west coasts of Florida, an area that historically has been prone to severe weather events, such as hurricanes. A disruption or failure of electric generation, transmission or distribution systems or natural gas production, transmission, storage or distribution systems in the event of a hurricane, tornado or other severe weather event, or otherwise, could prevent NEE and FPL from operating their business in the normal course and could result in any of the adverse consequences described above. Any of the foregoing could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

At FPL and other businesses of NEE where cost recovery is available, recovery of costs to restore service and repair damaged facilities is or may be subject to regulatory approval, and any determination by the regulator not to permit timely and full recovery of the costs incurred could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

Changes in weather can also affect the production of electricity at power ~~generating~~generation facilities, including, but not limited to, NEER's wind and solar facilities. For example, the level of wind resource affects the revenue produced by wind ~~generating~~generation facilities. Because the levels of wind and solar resources are variable and difficult to predict, NEER's results of operations for individual wind and solar facilities specifically, and NEE's results of operations generally, may vary significantly from period to period, depending on the level of available resources. To the extent that resources are not available at planned levels, the financial results from these facilities may be less than expected.

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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.

NEE and FPL are subject to the potentially adverse operating and financial effects of terrorist acts and threats, as well as cyber attacks and other disruptive activities of individuals or groups. There have been cyber attacks on energy infrastructure such as substations, gas pipelines and related assets in the past and there may be such attacks in the future. NEE's and FPL's generation, transmission and distribution facilities, fuel storage facilities, information technology systems and other infrastructure facilities and systems could be direct targets of, or otherwise be ~~indirectly~~materially adversely affected by, such activities.

Terrorist acts, cyber attacks or other similar events affecting NEE's and FPL's systems and facilities, or those of third parties on which NEE and FPL rely, could harm NEE's and FPL's business, for example, by limiting their ability to generate, purchase or transmit power, natural gas or other energy-related commodities by limiting their ability to bill customers and collect and process

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payments, and by delaying their development and construction of new ~~generating~~generation, distribution or transmission facilities or capital improvements to existing facilities. These events, and governmental actions in response, could result in a material decrease in revenues, significant additional costs (for example, to repair assets, implement additional security requirements or maintain or acquire insurance), significant fines and penalties, and reputational damage, could materially adversely affect NEE's and FPL's operations (for example, by contributing to disruption of supplies and markets for natural gas, oil and other fuels), and could impair NEE's and FPL's ability to raise capital (for example, by contributing to financial instability and lower economic activity). In addition, the implementation of security guidelines and measures has resulted in and is expected to continue to result in increased costs. Such events or actions may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

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

Insurance coverage may not continue to be available or may not be available at rates or on terms similar to those presently available to NEE and FPL. The ability of NEE and FPL to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. If insurance coverage is not available or obtainable on acceptable terms, NEE or FPL may be required to pay costs associated with adverse future events. NEE and FPL generally are not fully insured against all significant losses. For example, FPL is not fully insured against hurricane-related losses, but would instead seek recovery of such uninsured losses from customers subject to approval by the FPSC, to the extent losses exceed restricted funds set aside to cover the cost of storm damage. A loss for which NEE or FPL is not fully insured could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

NEE invests in gas and oil producing and transmission assets through NEER’s gas infrastructure business. The gas infrastructure business is exposed to fluctuating market prices of natural gas, natural gas liquids, oil and other energy commodities. A prolonged period of low gas and oil prices could impact NEER’s gas infrastructure business and cause NEER to delay or cancel certain gas infrastructure projects and for certain existing projects to be impaired, which could materially adversely affect NEE's results of operations.

Natural gas and oil prices are affected by supply and demand, both globally and regionally. Factors that influence supply and demand include operational issues, natural disasters, weather, political instability, conflicts, new discoveries, technological advances, economic conditions and actions by major oil-producing countries. There can be significant volatility in market prices for gas and oil, and price fluctuations could have a material effect on the financial performance of gas and oil producing and transmission assets. For example, in a low gas and oil price environment, NEER would generate less revenue from its gas infrastructure investments in gas and oil producing properties, and as a result certain investments might become less profitable or incur losses. Prolonged periods of low oil and gas prices could also result in oil and gas production and transmission projects ~~being~~to be delayed or cancelled or to experience lower returns, and for certain ~~existing~~ projects to bebecome impaired, which could materially adversely affect NEE's results of operations.

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

NEER provides full energy and capacity requirements services primarily to distribution utilities, which include load-following services and various ancillary services, to satisfy all or a portion of such utilities' power supply obligations to their customers. The supply costs for these transactions may be affected by a number of factors, including, but not limited to, events that may occur after such utilities have committed to supply power, such as weather conditions, fluctuating prices for energy and ancillary services, and the ability of the distribution utilities' customers to elect to receive service from competing suppliers. NEER may not be able to recover all of its increased supply costs, which could have a material adverse effect on 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 manage properly or hedge effectively the commodity risks within its portfolios

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could materially adversely affect NEE's business, financial condition, results of operations and prospects.

There can be significant volatility in market prices for fuel, electricity and renewable and other energy commodities. NEE's inability or failure to manage properly or hedge effectively its assets or positions against changes in commodity prices, volumes, interest rates, counterparty credit risk or other risk measures, based on factors both from within, or wholly or partially outside of, NEE's control, may materially adversely affect NEE's business, financial condition, results of operations and prospects.

~~Sales~~

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

A portion of NEER's power generation facilities operate wholly or partially without long-term power purchase agreements. Power from these facilities is sold on the spot market or on a short-term contractual basis. Spot market sales are subject to market volatility, and the revenue generated from these sales is subject to fluctuation that may cause NEE's results of operations to be volatile. NEER and NEE may not be able to manage volatility adequately, which could then have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

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

NEE is an active participant in energy markets. The liquidity of regional energy markets is an important factor in NEE's ability to manage risks in these operations. ~~Over~~Market liquidity is driven in part by the ~~past several years, other~~number of active market participants, which has declined in recent years as some banks and other financial institutions have ceased or significantly reduced their activities in energy markets as a result of several factors, including, but not limited to, government investigations, changes in market design and deteriorating credit quality.withdrawn from power marketing. Liquidity in the energy markets can be adversely affected by price volatility, restrictions on the availability of credit and other factors, and any reduction in the liquidity of energy markets could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

NEE's and FPL's hedging and trading procedures and associated risk management tools may not protect against significant losses.

NEE and FPL have hedging and trading procedures and associated risk management tools, such as separate but complementary financial, credit, operational, compliance and legal reporting systems, internal controls, management review processes and other mechanisms. NEE and FPL are unable to assure that such procedures and tools will be effective against all potential risks, including, without limitation, employee misconduct. If such procedures and tools are not effective, this could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.

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

NEE's and FPL's risk management tools and metrics associated with their hedging and trading procedures, such as daily value at risk, earnings at risk, stop loss limits and liquidity guidelines, are based on historical price movements. Due to the inherent uncertainty involved in price movements and potential deviation from historical pricing behavior, NEE and FPL are unable to assure that their risk management tools and metrics will be effective to protect against material adverse effects on their business, financial condition, results of operations and prospects.

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.

FPL and NEER depend upon power transmission and natural gas, nuclear fuel and other commodity transportation facilities, many of which they do not own. Occurrences affecting the operation of these facilities that may or may not be beyond FPL's and NEER's control (such as severe weather or a generation or transmission facility outage, pipeline rupture, or sudden and significant increase or decrease in wind generation) may limit or halt the ability of FPL and NEER to sell and deliver power and natural gas, or to purchase necessary fuels and other commodities, which could materially adversely impact NEE's and FPL's business, financial condition, results of operations and prospects.

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

NEE and FPL are exposed to risks associated with the creditworthiness and performance of their customers, hedging counterparties and vendors under contracts for the supply of equipment, materials, fuel and other goods and services required for their business operations and for the construction and operation of, and for capital improvements to, their facilities. Adverse conditions in the energy industry or the general economy, as well as circumstances of individual customers, hedging counterparties and vendors, may adversely affect the ability of some customers, hedging counterparties and vendors to perform as required under their contracts with NEE and FPL. For example, the prolonged downturn in oil and natural gas prices has adversely affected the financial stability of a number of enterprises in the energy industry, including some with which NEE does business.

If any hedging, vending or other counterparty fails to fulfill its contractual obligations, NEE and FPL may need to make arrangements with other counterparties or vendors, which could result in material financial losses, higher costs, untimely completion of power generation

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facilities and other projects, and/or a disruption of their operations. If a defaulting counterparty is in poor financial condition, NEE and FPL may not be able to recover damages for any contract breach.

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 use derivative instruments, such as swaps, options, futures and forwards, some of which are traded in the OTC markets or on exchanges, to manage their commodity and financial market risks, and for NEE to engage in trading and marketing activities. Any failures by their counterparties to perform or make payments in accordance with the terms of those transactions could have a material adverse effect on NEE's or FPL's business, financial condition, results of operations and prospects. Similarly, any requirement for FPL or NEE to post margin cash collateral under its derivative contracts could have a material adverse effect on its business, financial condition, results of operations and prospects. These risks may be increased during periods of adverse market or economic conditions affecting the industries in which NEE participates.

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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 and FPL operate in a highly regulated industry that requires the continuous functioning of sophisticated information technology systems and network infrastructure. Despite NEE's and FPL's implementation of security measures, all of their technology systems are vulnerable to disability, failures or unauthorized access due to such activities. If NEE's or FPL's information technology systems were to fail or be breached, sensitive confidential and other data could be compromised and NEE and FPL could be unable to fulfill critical business functions.

NEE's and FPL's business is highly dependent on their ability to process and monitor, on a daily basis, a very large number of transactions, many of which are highly complex and cross numerous and diverse markets. Due to the size, scope, complexity and geographical reach of NEE's and FPL's business, ~~and due to the complexity of the process of power generation, transmission and distribution,~~ the development and maintenance of information technology systems to keep track of and process information is critical and challenging. NEE's and FPL's operating systems and facilities may fail to operate properly or become disabled as a result of events that are either within, or wholly or partially outside of, their control, such as operator error, severe weather or terrorist activities. Any such failure or disabling event could materially adversely affect NEE's and FPL's ability to process transactions and provide services, and their business, financial condition, results of operations and prospects.

NEE and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including, but not limited to, integrating the modified, new or replacement system with existing systems and processes, implementing associated changes in accounting procedures and controls, and ensuring that data conversion is accurate and consistent. Any disruptions or deficiencies in existing information systems, or disruptions, delays or deficiencies in the modification or implementation of new information systems, could result in increased costs, the inability to track or collect revenues and the diversion of management's and employees' attention and resources, and could negatively impact the effectiveness of the companies' control environment, and/or the companies' ability to timely file required regulatory reports.

NEE and FPL also face the risks of operational failure or capacity constraints of third parties, including, but not limited to, those who provide power transmission and natural gas transportation services.

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

NEE's and FPL's retail businesses require access to sensitive customer data in the ordinary course of business. NEE's and FPL's retail businesses may also need to provide sensitive customer data to vendors and service providers who require access to this information in order to provide services, such as call center services, to the retail businesses. If a significant breach occurred, the reputation of NEE and FPL could be materially adversely affected, customer confidence could be diminished, or customer information could be subject to identity theft. NEE and FPL would be subject to costs associated with the breach and/or NEE and FPL could be subject to fines and legal claims, any of which may have a material adverse effect on the business, financial condition, results of operations and prospects of NEE and FPL.

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

NEE and FPL execute transactions in derivative instruments on either recognized exchanges or via the OTC markets, depending on management's assessment of the most favorable credit and market execution factors. Transactions executed in OTC markets have the potential for greater volatility and less liquidity than transactions on recognized exchanges. As a result, NEE and FPL may not be able to execute desired OTC transactions due to such heightened volatility and limited liquidity.

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In the absence of actively quoted market prices and pricing information from external sources, the valuation of derivative instruments involves management's judgment and use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these derivative instruments and have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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

From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting NEE and FPL. Adverse press coverage and other adverse statements, whether or not driven by political or public sentiment, may also result in investigations by regulators, legislators and law enforcement officials or in legal claims. Responding to these investigations and lawsuits, regardless of the ultimate outcome of the proceeding, can divert the time and effort of senior management from NEE's and FPL's business.

Addressing any adverse publicity, governmental scrutiny or enforcement or other legal proceedings is time consuming and expensive and, regardless of the factual basis for the assertions being made, can have a negative impact on the reputation of NEE and FPL,

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on the morale and performance of their employees and on their relationships with their respective regulators. It may also have a negative impact on their ability to take timely advantage of various business and market opportunities. The direct and indirect effects of negative publicity, and the demands of responding to and addressing it, may have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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

FPL must negotiate franchise agreements with municipalities and counties in Florida to provide electric services within such municipalities and counties, and electricity sales generated pursuant to these agreements represent a very substantial portion of FPL's revenues. If FPL is unable to maintain, negotiate or renegotiate such franchise agreements on acceptable terms, it could contribute to lower earnings and FPL may not fully realize the anticipated benefits from significant investments and expenditures, which could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

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

The costs of providing health care benefits to employees and retirees have increased substantially in recent years. NEE and FPL anticipate that their employee benefit costs, including, but not limited to, costs related to health care plans for employees and former employees, will continue to rise. The increasing costs and funding requirements associated with NEE's and FPL's health care plans may materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

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

NEE and FPL may not be able to service customers, grow their business or generally meet their other business plan goals effectively and profitably if they do not attract and retain a qualified workforce. Additionally, the loss or retirement of key executives and other employees may materially adversely affect service and productivity and contribute to higher training and safety costs.

Over the next several years, a significant portion of NEE's and FPL's workforce, including, but not limited to, many workers with specialized skills maintaining and servicing the nuclear generation facilities and electrical infrastructure, will be eligible to retire. Such highly skilled individuals may not be able to be replaced quickly due to the technically complex work they perform. If a significant amount of such workers retire and are not replaced, the subsequent loss in productivity and increased recruiting and training costs could result in a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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

Employee strikes or work stoppages could disrupt operations and lead to a loss of revenue and customers. Personnel costs may also increase due to inflationary or competitive pressures on payroll and benefits costs and revised terms of collective bargaining agreements with union employees. These consequences could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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.

NEE is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry in general. In addition, NEE may be unable to identify attractive acquisition opportunities at favorable prices and to complete and integrate them successfully and in a timely manner.

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

NEE may not realize the anticipated benefits from the Texas pipeline business. Although NEP has made a number of acquisitions of wind and solar generation projects, the Texas pipeline business is the first third party acquisition by NEP and is NEP’s first acquisition of natural gas pipeline assets.

In the future NEP may make additional acquisitions of assets which are inherently risky and NEE may not realize the anticipated benefits of any acquisitions, which could materially adversely affect NEE’s business, financial condition, results of operations and prospects.

Nuclear Generation Risks

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

NEE's and FPL's nuclear generation facilities are subject to environmental, health and financial risks, including, but not limited to, those relating to site storage of spent nuclear fuel, the disposition of spent nuclear fuel, leakage and emissions of tritium and other radioactive elements in the event of a nuclear accident or otherwise, the threat of a terrorist attack and other potential liabilities arising out of the ownership or operation of the facilities. NEE and FPL maintain decommissioning funds and external insurance coverage which are intended to reduce the financial exposure to some of these risks; however, the cost of decommissioning nuclear generation facilities could exceed the amount available in NEE's and FPL's decommissioning funds, and the exposure to liability and property damages could exceed the amount of insurance coverage. If NEE or FPL is unable to recover the additional costs incurred through insurance or, in the case of FPL, through regulatory mechanisms, their business, financial condition, results of operations and prospects could be materially adversely affected.

In the event of an incident at any nuclear generation facility in the 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.

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~~the maximum amount of private liability insurance ~~per site, which is the maximum~~ obtainable, and participates in a secondary financial protection system, which provides ~~up to $13.2 billion of~~ liability insurance coverage ~~per~~for an incident at any nuclear reactor in the U.S. Under the secondary

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financial protection system, NEE is subject to retrospective assessments and/or retrospective insurance premiums, ~~of up to $1 billion ($509 million for FPL),~~ plus any applicable taxes, ~~per~~for an incident at any nuclear reactor in the U.S. or at certain nuclear generation facilities in Europe, regardless of fault or proximity to the ~~incident, payable at a rate not to exceed $152 million ($76 million for FPL) per incident per year.~~incident. Such assessments, if levied, could materially adversely affect NEE's and FPL's business, financial condition, results of operations and prospects.

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.~~facilities and/or result in reduced revenues.

The NRC has broad authority to impose licensing and safety-related requirements for the operation and maintenance of nuclear generation facilities, the addition of capacity at existing nuclear generation facilities and the construction of new nuclear generation facilities, and these requirements are subject to change. In the event of non-compliance, the NRC has the authority to impose fines and/or shut down a nuclear generation facility, ~~or to take both of these actions,~~ depending upon ~~its~~the NRC's assessment of the severity of the situation, until compliance is achieved. Any of the foregoing events could require NEE and FPL to incur increased costs and capital expenditures, and could reduce revenues.

Any serious nuclear incident occurring at a NEE or FPL plant could result in substantial remediation costs and other expenses. A major incident at a nuclear facility anywhere in the world could cause the NRC to limit or prohibit the operation or licensing of any domestic nuclear generation facility. An incident at a nuclear facility anywhere in the world also could cause the NRC to impose additional conditions or other requirements on the industry, or on certain types of nuclear generation units, which could increase costs, reduce revenues and result in additional capital expenditures.

The inability to operate any of ~~NEER's~~NEE'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.

The operating licenses for NEE's and FPL's nuclear generation facilities extend through at least 2030. If the facilities cannot be operated for any reason through the life of those operating licenses, NEE or FPL may be required to increase depreciation rates, incur impairment charges and accelerate future decommissioning expenditures, any of which could materially adversely affect their 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.

The threat of terrorist activity, as well as recent international events implicating the safety of nuclear facilities, could result in more stringent or complex measures to keep facilities safe from a variety of hazards, including, but not limited to, natural disasters such as earthquakes and tsunamis, as well as terrorist or other criminal threats. This increased focus on safety could result in higher compliance costs which, at present, cannot be assessed with any measure of certainty and which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.

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NEE's and FPL's nuclear units are periodically removed from service to accommodate ~~normal~~planned 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.

NEE's and FPL's nuclear units are periodically removed from service to accommodate ~~normal~~planned refueling and maintenance outages, including, but not limited to, inspections, repairs and certain other ~~modifications. In addition, outages may be scheduled, often in connection with a refueling outage,~~modifications as well as to replace ~~equipment, to increase the generation capacity at a particular nuclear unit, or for other purposes, and those planned activities increase the time the unit is not in operation.~~equipment. In the event that a scheduled outage lasts longer than anticipated or in the event of an unplanned outage due to, for example, equipment failure, such outages could materially adversely affect NEE's or FPL's business, financial condition, results of operations and prospects.

Liquidity, Capital Requirements and Common Stock Risks

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

NEE and FPL rely on access to capital and credit markets as significant sources of liquidity for capital requirements and other operations requirements that are not satisfied by operating cash flows. Disruptions, uncertainty or volatility in those capital and credit markets ~~including, but not limited to, the conditions of the most recent financial crises in the U.S. and abroad,~~ could increase NEE's and FPL's cost of ~~capital.~~capital and affect their ability to fund their liquidity and capital needs and to meet their growth objectives. If NEE or FPL is unable to access regularly the capital and credit markets on terms that are reasonable, it may have to delay raising capital, issue shorter-term securities and incur an unfavorable cost of capital, which, in turn, could adversely affect its ability to grow its business, could contribute to lower earnings and reduced financial flexibility, and could have a material adverse effect on its business, financial condition, results of operations and prospects.

Although NEE's competitive energy and certain other subsidiaries have used non-recourse or limited-recourse, project-specific or other financing in the past, market conditions and other factors could adversely affect the future availability of such financing. The inability of NEE's subsidiaries, including, without limitation, NEECH and NEP and their respective subsidiaries, to access the capital and credit markets to provide project-specific or other financing for ~~electric-generating and~~electric generation or other facilities or acquisitions on favorable terms, whether because of disruptions or volatility in those markets or otherwise, could necessitate additional capital raising or borrowings by NEE and/or NEECH in the future.

The inability of subsidiaries that have existing project-specific or other financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default which, if not cured or waived, might result in the specific project, and potentially in some limited instances its parent companies, being required to repay the associated debt or other borrowings earlier than otherwise anticipated, and if such repayment were not made, the lenders or security holders

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would generally have rights to foreclose against the project assets and related collateral. Such an occurrence also could result in NEE expending additional funds or incurring additional obligations over the shorter term to ensure continuing compliance with project-specific financing arrangements based upon the expectation of improvement in the project's performance or financial returns over the longer term. Any of these actions could materially adversely affect NEE's business, financial condition, results of operations and prospects, as well as the availability or terms of future financings for NEE or its subsidiaries.

NEE's, NEECH's and FPL's inability to maintain their current credit ratings may materially adversely affect NEE's and FPL's liquidity and results of operations, limit the ability of NEE and FPL to grow their business, and increase interest costs.

The inability of NEE, NEECH and FPL to maintain their current credit ratings could materially adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, could impact NEE's and FPL's ability to grow their business and service indebtedness and repay borrowings, and would likely increase their interest costs. In addition, certain agreements and guarantee arrangements would require posting of additional collateral in the event of a ratings downgrade. Some of the factors that can affect credit ratings are cash flows, liquidity, the amount of debt as a component of total capitalization, NEE's overall business mix and political, legislative and regulatory actions. There can be no assurance that one or more of the ratings of NEE, NEECH and FPL will not be lowered or withdrawn entirely by a rating agency.

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

The inability of NEE's, NEECH's and FPL's credit providers to fund their credit commitments or to maintain their current credit ratings could require NEE, NEECH or FPL, among other things, to renegotiate requirements in agreements, find an alternative credit provider with acceptable credit ratings to meet funding requirements, or post cash collateral and could have a material adverse effect on NEE's and FPL's liquidity.

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

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NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries. A decline in the market value of the assets held in the defined benefit pension plan due to poor investment performance or other factors may increase the funding requirements for this obligation.

NEE's defined benefit pension plan is sensitive to changes in interest rates, since, as interest rates decrease the funding liabilities increase, potentially increasing benefits costs and funding requirements. Any increase in benefits costs or funding requirements may have a material adverse effect on NEE's and FPL's business, financial condition, liquidity, results of operations and prospects.

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

NEE and FPL are required to maintain decommissioning funds to satisfy their future obligations to decommission their nuclear power plants. A decline in the market value of the assets held in the decommissioning funds due to poor investment performance or other factors may increase the funding requirements for these obligations. Any increase in funding requirements may have a material adverse effect on NEE's and FPL's ~~business,~~liquidity, financial condition and results of ~~operations and prospects.~~operations.

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

NEE holds ~~other~~certain investments where changes in the fair value affect NEE's financial results. In some cases there may be no observable market values for these investments, requiring fair value estimates to be based on other valuation techniques. This type of analysis requires significant judgment and the actual values realized in a sale of these investments could differ materially from those estimated. A sale of an investment below previously estimated value, or other decline in the fair value of an investment, could result in losses or the write-off of such investment, and may have a material adverse effect on NEE's liquidity, financial condition and results of operations.

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

NEE is a holding company and, as such, has no material operations of its own. Substantially all of NEE's consolidated assets are held by its subsidiaries. NEE's ability to meet its financial obligations, including, but not limited to, its guarantees, and to pay dividends on its common stock is primarily dependent on its subsidiaries' net income and cash flows, which are subject to the risks of their respective businesses, and their ability to pay upstream dividends or to repay funds to NEE.

NEE's subsidiaries are separate legal entities and have no independent obligation to provide NEE with funds for its payment obligations. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy

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before they can provide NEE with funds. In addition, in the event of a subsidiary's liquidation or reorganization, NEE's right to participate in a distribution of assets is subject to the prior claims of the subsidiary's creditors.

The dividend-paying ability of some of the subsidiaries is limited by contractual restrictions which are contained in outstanding financing agreements and which may be included in future financing agreements. The future enactment of laws or regulations also may prohibit or restrict the ability of NEE's subsidiaries to pay upstream dividends or to repay funds.

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.

NEE guarantees many of the obligations of its consolidated subsidiaries, other than FPL, through guarantee agreements with NEECH. These guarantees may require NEE to provide substantial funds to its subsidiaries or their creditors or counterparties at a time when NEE is in need of liquidity to meet its own financial obligations. Funding such guarantees may materially adversely affect NEE's ability to meet its financial obligations or to pay dividends.

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

NEE understands that NEP expects to finance acquisitions of clean energy projects partially or wholly through the issuance of additional common units. NEP needs to be able to access the capital markets on commercially reasonable terms when acquisition opportunities arise. NEP's ability to access the equity capital markets is dependent on, among other factors, the overall state of the capital markets and investor appetite for investment in clean energy projects in general and NEP's common units in particular. An inability to obtain equity financing on commercially reasonable terms could limit NEP's ability to consummate future acquisitions and to effectuate its growth strategy in the manner currently contemplated. Furthermore there may not be sufficient availability under NEP OpCo's subsidiaries' revolving credit facility or other financing arrangements on commercially reasonable terms when acquisition opportunities arise. If debt financing is available, it may be available only on terms that could significantly increase NEP's interest expense, impose additional or more restrictive covenants and reduce cash distributions to its unitholders. An inability to access sources of capital on commercially reasonable terms could significantly limit NEP's ability to consummate future acquisitions and to effectuate its growth strategy. NEP's inability to effectively consummate future acquisitions could have a material adverse effect on NEP's ability to grow its business and make cash distributions to its unitholders.

Through an indirect wholly owned subsidiary, NEE owns a limited partner interest in NEP OpCo. NEP's inability to access the capital markets on commercially reasonable terms and effectively consummate future acquisitions could have a material adverse effect on NEP's ability to grow its cash distributions to its unitholders, including NEE, and on the value of NEE’s limited partnership interest in NEP OpCo.

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

The market price and trading volume of NEE's common stock are subject to fluctuations as a result of, among other factors, general credit and capital market conditions and changes in market sentiment regarding the operations, business and financing strategies of NEE and its subsidiaries. As a result, disruptions, uncertainty or volatility in the credit and capital markets may, for example, have a material adverse effect on the market price of NEE's common stock.

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Item 1B. Unresolved Staff Comments

None

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Item 2. Properties

~~NEE and its subsidiaries maintain properties which are adequate for their operations; the~~For a description of NEE's principal properties, ~~are described below.~~

~~Generating Facilities~~

see Item 1. Business - FPL

~~At December 31, 2014, the electric generating, transmission, distribution~~ and ~~general facilities of FPL represented approximately~~ ~~51%~~,~~11%~~, ~~33%~~ ~~and~~ 5%~~, respectively, of FPL's gross investment in electric utility plant in service and other property. At December 31, 2014, FPL had the following generating facilities:~~

FPL Facilities Location
No.
of Units
Fuel
Net
Capability
(MW)^(a)
Fossil
Combined-cycle
Cape Canaveral Cocoa, FL 1 Gas/Oil 1,210

Fort Myers Fort Myers, FL 1 Gas 1,436

Lauderdale Dania, FL 2 Gas/Oil 884

Manatee Parrish, FL 1 Gas 1,143

Martin Indiantown, FL 1 Gas/Oil/Solar Thermal 1,135
^(b)
Martin Indiantown, FL 2 Gas 938

Riviera Riviera Beach, FL 1 Gas/Oil 1,212

Sanford Lake Monroe, FL 2 Gas 2,010

Turkey Point Florida City, FL 1 Gas/Oil 1,192

West County West Palm Beach, FL 3 Gas/Oil 3,657

Steam turbines
Manatee Parrish, FL 2 Gas/Oil 1,618

Martin Indiantown, FL 2 Gas/Oil 1,649

St. Johns River Power Park Jacksonville, FL 2 Coal/Petroleum Coke 254
^(c)
Scherer Monroe County, GA 1 Coal 643
^(d)
Turkey Point Florida City, FL 1 Gas/Oil 396

Simple-cycle combustion turbines
Fort Myers Fort Myers, FL 2 Gas/Oil 319

Gas turbines
Fort Myers Fort Myers, FL 12 Oil 648

Lauderdale Dania, FL 24 Gas/Oil 840

Port Everglades Port Everglades, FL 12 Gas/Oil 420

Nuclear
St. Lucie Hutchinson Island, FL 2 Nuclear 1,821
^(e)
Turkey Point Florida City, FL 2 Nuclear 1,632

Solar PV
DeSoto Arcadia, FL 1 Solar PV 25

Space Coast Cocoa, FL 1 Solar PV 10

TOTAL 25,092
^(f)

~~______________________~~


~~(a)~~	~~Represents FPL's net ownership interest in warm weather peaking capability.~~


~~(b)~~	~~The megawatts generated by the 75 MW solar thermal hybrid facility replace steam produced by this unit and therefore are not incremental.~~


~~(c)~~	~~Represents FPL's 20% ownership interest in each of SJRPP Units Nos. 1 and 2, which are jointly owned with JEA.~~


~~(d)~~	~~Represents FPL's approximately 76% ownership of Scherer Unit No. 4, which is jointly owned with JEA.~~


~~(e)~~	~~Excludes Orlando Utilities Commission's and the Florida Municipal Power Agency's combined share of approximately 15% of St. Lucie Unit No. 2.~~


~~(f)~~	~~Substantially all of FPL's properties are subject to the lien of FPL's mortgage.~~

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~~NEER~~

~~At December 31, 2014, NEER had the following generating facilities:~~

NEER Facilities Location
Geographic
Region

No.
of Units
Fuel
Net
Capability
(MW)^(a)
Wind
Adelaide Wind^(b)
Middlesex County, Ontario, Canada Canada 37
Wind 60
Ashtabula Wind^(b)(c)
Barnes County, ND Midwest 99
Wind 148
Ashtabula Wind II^(c)(d)
Griggs & Steele Counties, ND Midwest 80
Wind 120
Ashtabula Wind III Barnes County, ND Midwest 39
Wind 62
Baldwin Wind^(b)
Burleigh County, ND Midwest 64
Wind 102
Blackwell Wind^(c)(d)
Kay County, OK Other South 26
Wind 60
Blue Summit^(c)(d)
Wilbarger County, TX Texas 85
Wind 135
Bluewater Wind^(b)(e)
Huron County, Ontario, Canada Canada 37
Wind 60
Bornish Wind^(b)
Middlesex County, Ontario, Canada Canada 45
Wind 73
Buffalo Ridge Lincoln County, MN Midwest 73
Wind 26
Butler Ridge Wind^(b)(c)
Dodge County, WI Midwest 36
Wind 54
Cabazon^(b)
Riverside County, CA West 52
Wind 39
Callahan Divide^(b)
Taylor County, TX Texas 76
Wind 114
Capricorn Ridge^(c)
Sterling & Coke Counties, TX Texas 208
Wind 364
Capricorn Ridge Expansion^(c)
Sterling & Coke Counties, TX Texas 199
Wind 298
Cerro Gordo^(b)
Cerro Gordo County, IA Midwest 55
Wind 41
Cimarron^(b)
Gray County, KS Other South 72
Wind 166
Conestogo Wind^(b)(e)
Wellington County, Ontario, Canada Canada 10
Wind 23
Crystal Lake I^(b)(c)
Hancock County, IA Midwest 100
Wind 150
Crystal Lake II Winnebago County, IA Midwest 80
Wind 200
Crystal Lake III Winnebago County, IA Midwest 44
Wind 66
Day County Wind^(b)
Day County, SD Midwest 66
Wind 99
Diablo Wind^(b)
Alameda County, CA West 31
Wind 20
Elk City Wind^(b)(e)
Roger Mills & Beckham Counties, OK Other South 43
Wind 99
Elk City Wind II Roger Mills & Beckham Counties, OK Other South 66
Wind 101
Endeavor Wind Osceola County, IA Midwest 40
Wind 100
Endeavor Wind II Osceola County, IA Midwest 20
Wind 50
Ensign Wind Gray County, KS Other South 43
Wind 99
Ghost Pine Wind Kneehill County, Alberta, Canada Canada 51
Wind 82
Gray County Gray County, KS Other South 170
Wind 112
Green Mountain^(b)
Somerset County, PA Northeast 8
Wind 10
Green Power Riverside County, CA West 22
Wind 17
Green Ridge Power Alameda & Contra Costa Counties, CA West 803
Wind 87
Hancock County^(b)
Hancock County, IA Midwest 148
Wind 98
High Winds^(b)
Solano County, CA West 90
Wind 162
Horse Hollow Wind^(b)
Taylor County, TX Texas 142
Wind 213
Horse Hollow Wind II^(b)
Taylor & Nolan Counties, TX Texas 130
Wind 299
Horse Hollow Wind III^(b)
Nolan County, TX Texas 149
Wind 224
Indian Mesa Pecos County, TX Texas 125
Wind 83
Jericho Wind Lambton & Middlesex Counties, Ontario, Canada Canada 91
Wind 147
King Mountain^(b)
Upton County, TX Texas 214
Wind 278
Lake Benton II^(b)
Pipestone County, MN Midwest 137
Wind 103
Langdon Wind^(b)(c)
Cavalier County, ND Midwest 79
Wind 118
Langdon Wind II^(b)(c)
Cavalier County, ND Midwest 27
Wind 41
Lee / DeKalb Wind Lee & DeKalb Counties, IL Midwest 145
Wind 217
Limon I^(c)(d)
Lincoln, Elbert & Arapahoe Counties, CO West 125
Wind 200
Limon II^(c)(d)
Lincoln, Elbert & Arapahoe Counties, CO West 125
Wind 200
Limon III^(c)(d)
Lincoln County, CO West 117
Wind 201
Logan Wind^(c)
Logan County, CO West 134
Wind 201
Majestic Wind^(b)(c)
Carson County, TX Texas 53
Wind 79
Majestic Wind II^(c)
Carson & Potter Counties, TX Texas 51
Wind 80
Mammoth Plains Wind^(c)
Dewey & Blaine Counties, OK Other South 117
Wind 199
Meyersdale^(b)
Somerset County, PA Northeast 20
Wind 30
Mill Run^(b)
Fayette County, PA Northeast 10
Wind 15
Minco Wind^(b)
Grady County, OK Other South 62
Wind 99
Minco Wind II^(b)
Grady & Caddo Counties, OK Other South 63
Wind 101

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NEER Facilities Location
Geographic
Region

No.
of Units
Fuel
Net
Capability
(MW)^(a)
Minco Wind III^(c)(d)
Grady, Caddo & Canadian Counties, OK Other South 63
Wind 101
Mojave 3/4/5 Kern County, CA West 246
Wind 41
Montezuma Wind^(b)
Solano County, CA West 16
Wind 37
Montezuma Wind II^(c)(d)
Solano County, CA West 34
Wind 78
Mount Copper^(b)
Gaspésie, Quebec, Canada Canada 30
Wind 52
Mount Miller^(b)
Gaspésie, Quebec, Canada Canada 30
Wind 52
Mountaineer Wind^(b)
Preston & Tucker Counties, WV Northeast 44
Wind 66
Mower County Wind^(c)
Mower County, MN Midwest 43
Wind 99
New Mexico Wind^(b)
Quay & Debaca Counties, NM West 136
Wind 204
North Dakota Wind^(b)
LaMoure County, ND Midwest 41
Wind 62
North Sky River^(b)
Kern County, CA West 100
Wind 162
Northern Colorado^(b)(e)
Logan County, CO West 81
Wind 174
Oklahoma / Sooner Wind^(b)
Harper & Woodward Counties, OK Other South 68
Wind 102
Oliver County Wind I^(c)
Oliver County, ND Midwest 22
Wind 51
Oliver County Wind II^(c)
Oliver County, ND Midwest 32
Wind 48
Palo Duro Wind^(c)(f)
Hansford & Ochiltree Counties, TX Texas 147
Wind 250
Peetz Table Wind^(c)
Logan County, CO West 133
Wind 199
Perrin Ranch Wind^(b)(e)
Coconino County, AZ West 62
Wind 99
Pheasant Run I^(b)
Huron County, MI Midwest 44
Wind 75
Pubnico Point^(b)
Yarmouth County, Nova Scotia, Canada Canada 17
Wind 31
Red Canyon Wind^(b)
Borden, Garza & Scurry Counties, TX Texas 56
Wind 84
Red Mesa Wind Cibola County, NM West 64
Wind 102
Seiling Wind^(c)
Dewey County, OK Other South 117
Wind 199
Seiling Wind II^(c)
Dewey & Woodward Counties, OK Other South 59
Wind 100
Sky River^(b)
Kern County, CA West 322
Wind 73
Somerset Wind Power^(b)
Somerset County, PA Northeast 6
Wind 9
South Dakota Wind^(b)
Hyde County, SD Midwest 27
Wind 41
Southwest Mesa^(b)
Upton & Crockett Counties, TX Texas 106
Wind 74
Stateline^(b)
Umatilla County, OR and Walla Walla County, WA West 454
Wind 300
Steele Flats^(c)(d)
Jefferson & Gage Counties, NE Other South 44
Wind 75
Story County Wind^(b)(c)
Story County, IA Midwest 100
Wind 150
Story County Wind II^(b)
Story & Hardin Counties, IA Midwest 100
Wind 150
Summerhaven^(b)(e)
Haldimand County, Ontario, Canada Canada 56
Wind 124
Tuscola Bay^(b)(e)
Tuscola, Bay & Saginaw Counties, MI Midwest 75
Wind 120
Tuscola II Tuscola & Bay Counties, MI Midwest 59
Wind 100
Vansycle^(b)
Umatilla County, OR West 38
Wind 25
Vansycle II Umatilla County, OR West 43
Wind 99
Vasco Winds^(c)(d)
Contra Costa County, CA West 33
Wind 78
Waymart^(b)
Wayne County, PA Northeast 43
Wind 65
Weatherford Wind^(b)
Custer & Washita Counties, OK Other South 98
Wind 147
Wessington Springs Wind^(b)(c)
Jerauld County, SD Midwest 34
Wind 51
White Oak^(c)(d)
McLean County, IL Midwest 100
Wind 150
Wilton Wind^(b)
Burleigh County, ND Midwest 33
Wind 49
Wilton Wind II^(c)(d)
Burleigh County, ND Midwest 33
Wind 50
Windpower Partners 1990 Alameda & Contra Costa Counties, CA West 141
Wind 14
Windpower Partners 1991 Alameda & Contra Costa Counties, CA West 162
Wind 16
Windpower Partners 1991-92 Alameda & Contra Costa Counties, CA West 223
Wind 22
Windpower Partners 1992 Alameda & Contra Costa Counties, CA West 300
Wind 30
Windpower Partners 1993^(c)(d)
Riverside County, CA West 33
Wind 50
Wolf Ridge Wind^(c)(d)
Cooke County, TX Texas 75
Wind 112
Woodward Mountain Upton & Pecos Counties, TX Texas 242
Wind 160
Total Wind 11,427
Contracted
Bayswater^(b)
Far Rockaway, NY Northeast 2
Gas 56
Duane Arnold Palo, IA Midwest 1
Nuclear 431
^(g)
Genesis^(b)(e)
Riverside County, CA West 2
Solar Thermal 250
Hatch Solar Hatch, NM West 1
Solar CPV 5
Jamaica Bay^(b)
Far Rockaway, NY Northeast 2
Gas/Oil 54
Marcus Hook 750^(b)
Marcus Hook, PA Northeast 4
Gas 744
Moore Solar^(b)(e)
Lambton County, Ontario, Canada Canada 1
Solar PV 20
Mountain View Solar^(b)
Clark County, NV West 1
Solar PV 20

~~Table of Contents~~

NEER Facilities Location
Geographic
Region

No.
of Units
Fuel
Net
Capability
(MW)^(a)
Planta Termosolar I & II^(b)
Madrigalejo, Spain Other 2
Solar Thermal 100
Point Beach Two Rivers, WI Midwest 2
Nuclear 1,190
Sombra Solar^(b)(e)
Lambton County, Ontario, Canada Canada 1
Solar PV 20
Investments in joint ventures:
Desert Sunlight^(b)
Riverside County, CA West 2
Solar PV 275
SEGS III-IX^(b)
Kramer Junction & Harper Lake, CA West 7
Solar Thermal 147
Bellingham Bellingham, MA Northeast 3
Gas 150
Total Contracted 3,462

Merchant
Forney^(b)
Forney, TX Texas 8
Gas 1,792
Lamar Power Partners^(b)
Paris, TX Texas 6
Gas 1,000
Maine - Cape, Wyman Various - ME Northeast 6
Oil 796
^(h)
Marcus Hook 50 Marcus Hook, PA Northeast 1
Gas 50
Paradise Solar West Deptford, NJ Northeast 1
Solar PV 5
Seabrook Seabrook, NH Northeast 1
Nuclear 1,100
⁽ⁱ⁾
Investment in joint venture - Sayreville Sayreville, NJ Northeast 3
Gas 145
Total Merchant 4,888
Total Generating Capability 19,777
Less noncontrolling interest (199)
Total Net Generating Capability 19,578

~~______________________~~


~~(a)~~	~~Represents NEER's net ownership interest in plant capacity.~~


~~(b)~~	~~These generating facilities are encumbered by liens against their assets securing various financings.~~


~~(c)~~	~~NEER owns these wind facilities together with third-party investors with differential membership interests. See Note 1 - Sale of Differential Membership Interests.~~


~~(d)~~	~~Various financings are secured by the pledge of NEER's membership interests in the entities owning these wind facilities.~~


~~(e)~~	~~These generating facilities are part of the NEP portfolio and subject to a 20.1% noncontrolling interest.~~


~~(f)~~	~~This facility became part of the NEP portfolio in January 2015 and is subject to a 20.1% noncontrolling interest.~~


~~(g)~~	~~Excludes Central Iowa Power Cooperative and Corn Belt Power Cooperative's combined share of 30%.~~


~~(h)~~	~~Excludes six other energy-related partners' combined share of 16%.~~


~~(i)~~	~~Excludes Massachusetts Municipal Wholesale Electric Company's, Taunton Municipal Lighting Plant's and Hudson Light & Power Department's combined share of 11.77%.~~

~~Transmission and Distribution~~

~~At December 31, 2014, FPL owned and operated 596 substations and the following electric transmission and distribution lines:~~

Nominal
Voltage

Overhead Lines
Circuit/Pole Miles

Trench and
Submarine
Cables Miles
500 kV 1,106
^(a)
—
230 kV 3,188
25
138 kV 1,580
52
115 kV 758
—
69 kV 164
14
Total circuit miles 6,796
91
Less than 69 kV (pole miles) 42,321
25,411

~~______________________~~

~~(a) Includes approximately 75 miles owned jointly with JEA.~~

At December 31, 2014, NEER owned and operated 171 substations and approximately 993 circuit miles of transmission lines ranging from 69 kV to 345 kV and NEET owned and operated 6 substations and approximately 624 circuit miles of 345 kV transmission lines.Item 1. Business - NEER.

Character of Ownership

Substantially all of FPL's properties are subject to the lien of FPL's mortgage, which secures most debt securities issued by FPL. The majority of FPL's real property is held in fee and is free from other encumbrances, subject to minor exceptions which are not of a nature as to substantially impair the usefulness to FPL of such properties. Some of FPL's electric lines are located on parcels of land which are not owned in fee by FPL but are covered by necessary consents of governmental authorities or rights obtained from owners of private property. The majority of NEER's ~~generating~~generation facilities, pipeline facilities and transmission assets are owned by NEER

~~Table of Contents~~

subsidiaries and a number of those facilities and assets, including all of the Texas pipelines, are encumbered by liens securing various financings. Additionally, the majority of NEER's ~~generating~~generation facilities, pipeline facilities and transmission lines are located on land leased or under easement from owners of private property. The majority of NEET’s transmission assets are encumbered by liens securing financings and the majority of its transmission lines are located on land leased or under easement from owners of private property. See ~~Generating Facilities and~~ Note 1 - Electric Plant, Depreciation and Amortization.

Item 3. Legal Proceedings

NEE and FPL are parties to various legal and regulatory proceedings in the ordinary course of their respective businesses. For information regarding legal proceedings that could have a material adverse effect on NEE or FPL, see Note 13 - Legal Proceedings. Such descriptions are incorporated herein by reference.None

Item 4. Mine Safety Disclosures

Not applicable

Table of Contents

PART II

Item 5. Market for Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock Data. All of FPL's common stock is owned by NEE. NEE's common stock is traded on the New York Stock Exchange under the symbol "NEE." The high and low sales prices for the common stock of NEE as reported in the consolidated transaction reporting system of the New York Stock Exchange and the cash dividends per share declared for each quarter during the past two years are as follows:


	2014						2013						2016						2015
Quarter	High		Low		Cash Dividends		High		Low		Cash Dividends		High		Low		Cash Dividends		High		Low		Cash Dividends
First	$	96.13	$	83.97	$	0.725	$	77.79	$	69.81	$	0.66	$	119.37	$	102.20	$	0.87	$	112.64	$	97.48	$	0.77
Second	$	102.51	$	93.28	$	0.725	$	82.65	$	74.78	$	0.66	$	130.43	$	112.44	$	0.87	$	106.63	$	97.23	$	0.77
Third	$	102.46	$	91.79	$	0.725	$	88.39	$	78.81	$	0.66	$	131.98	$	120.22	$	0.87	$	109.98	$	93.74	$	0.77
Fourth	$	110.84	$	90.33	$	0.725	$	89.75	$	78.97	$	0.66	$	128.46	$	110.49	$	0.87	$	105.85	$	95.84	$	0.77

The amount and timing of dividends payable on NEE's common stock are within the sole discretion of NEE's Board of Directors. The Board of Directors reviews the dividend rate at least annually (generally in February) to determine its appropriateness in light of NEE's financial position and results of operations, legislative and regulatory developments affecting the electric utility industry in general and FPL in particular, competitive conditions, change in business mix and any other factors the Board of Directors deems relevant. The ability of NEE to pay dividends on its common stock is dependent upon, among other things, dividends paid to it by its subsidiaries. There are no restrictions in effect that currently limit FPL's ability to pay dividends to NEE. In February ~~2015,~~2017, NEE announced that it would increase its quarterly dividend on its common stock from ~~$0.725~~$0.87 per share to ~~$0.77~~$0.9825 per share. See Management's Discussion - Liquidity and Capital Resources - Covenants with respect to dividend restrictions and Note 10 - Common Stock Dividend Restrictions regarding dividends paid by FPL to NEE.

As of the close of business on January 31, ~~2015,~~2017, there were ~~22,023~~19,737 holders of record of NEE's common stock.

Issuer Purchases of Equity Securities. Information regarding purchases made by NEE of its common stock during the three months ended December 31, ~~2014~~2016 is as follows:

Period
Total
Number
of Shares
Purchased^(a)

Average
Price Paid
Per Share

Total Number of Shares
Purchased as Part of a
Publicly Announced Program

Maximum Number of
Shares that May Yet be
Purchased Under the
Program^(b)
10/1/2014 - 10/31/14 —
—
— 13,274,748
11/1/2014 - 11/30/14 —
—
— 13,274,748
12/1/2014 - 12/31/14 462
$ 100.76
— 13,274,748
Total 462
$ 100.76
—



Period	Total Number of Shares Purchased^(a)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under the Program^(b)
10/1/2016 - 10/31/16	—	—		—	13,274,748
11/1/2016 - 11/30/16	359	$	115.03	—	13,274,748
12/1/2016 - 12/31/16	511	$	115.95	—	13,274,748
Total	870	$	115.57	—

______________________

(a)

~~Consists~~Includes: (1) in November 2016, shares of common stock withheld from employees to pay certain withholding taxes upon the vesting of stock awards granted to such employees under the NextEra Energy, Inc. Amended and Restated 2011 Long Term Incentive Plan; and (2) in December 2016, shares of common stock purchased as a reinvestment of dividends by the trustee of a grantor trust in connection with NEE's obligation under a February 2006 grant under the NextEra Energy, Inc. Amended and Restated Long-Term Incentive Plan (former LTIP) to an executive officer of deferred retirement share awards.


(b)	In February 2005, NEE's Board of Directors authorized common stock repurchases of up to 20 million shares of common stock over an unspecified period, which authorization was most recently reaffirmed and ratified by the Board of Directors in July 2011.

4135

Table of Contents

Item 6. Selected Financial Data


	Years Ended December 31,															Years Ended December 31,
	2014			2013			2012			2011			2010			2016		2015		2014		2013		2012
SELECTED DATA OF NEE (millions, except per share amounts):
Operating revenues	$	17,021		$	15,136		$	14,256		$	15,341		$	15,317		$	16,155	$	17,486	$	17,021	$	15,136	$	14,256
Income from continuing operations^(b)(a)	$	2,469		$	1,677		$	1,911		$	1,923		$	1,957		$	3,005	$	2,762	$	2,469	$	1,677	$	1,911
Net income^(c)(b)	$	2,469		$	1,908		$	1,911		$	1,923		$	1,957		$	3,005	$	2,762	$	2,469	$	1,908	$	1,911
Net income attributable to NEE:
Income from continuing operations^(b)(a)	$	2,465		$	1,677		$	1,911		$	1,923		$	1,957		$	2,912	$	2,752	$	2,465	$	1,677	$	1,911
Gain from discontinued operations^(c)(b)	—			231			—			—			—			—		—		—		231		—
Total ^(b)(c)	$	2,465		$	1,908		$	1,911		$	1,923		$	1,957
Total																$	2,912	$	2,752	$	2,465	$	1,908	$	1,911
Earnings per share attributable to NEE - basic:
Continuing operations^(b)(a)	$	5.67		$	3.95		$	4.59		$	4.62		$	4.77		$	6.29	$	6.11	$	5.67	$	3.95	$	4.59
Net income^(c)(b)	$	5.67		$	4.50		$	4.59		$	4.62		$	4.77		$	6.29	$	6.11	$	5.67	$	4.50	$	4.59
Earnings per share attributable to NEE - assuming dilution:
Continuing operations^(b)(a)	$	5.60		$	3.93		$	4.56		$	4.59		$	4.74		$	6.25	$	6.06	$	5.60	$	3.93	$	4.56
Net income^(c)(b)	$	5.60		$	4.47		$	4.56		$	4.59		$	4.74		$	6.25	$	6.06	$	5.60	$	4.47	$	4.56
Dividends paid per share of common stock	$	2.90		$	2.64		$	2.40		$	2.20		$	2.00		$	3.48	$	3.08	$	2.90	$	2.64	$	2.40
Total assets^(d)(c)	$	74,929		$	69,306		$	64,439		$	57,188		$	52,994		$	89,993	$	82,479	$	74,605	$	69,007	$	64,144
Long-term debt, excluding current maturities	$	24,367		$	23,969		$	23,177		$	20,810		$	18,013		$	27,818	$	26,681	$	24,044	$	23,670	$	22,881
SELECTED DATA OF FPL (millions):
Operating revenues	$	11,421		$	10,445		$	10,114		$	10,613		$	10,485
Net income	$	1,517		$	1,349		$	1,240		$	1,068		$	945
Total assets	$	39,307		$	36,488		$	34,853		$	31,816		$	28,698
Long-term debt, excluding current maturities	$	9,413		$	8,473		$	8,329		$	7,483		$	6,682
Energy sales (kWh)	113,196			107,643			105,109			106,662			107,978
Energy sales:
Residential	48.8		%	50.1		%	50.8		%	51.2		%	52.2		%
Commercial	40.4			42.1			43.0			42.2			41.3
Industrial	2.6			2.7			2.9			2.9			2.9
Interchange power sales	2.8			2.3			0.7			0.9			0.8
Other^(e)	5.4			2.8			2.6			2.8			2.8
Capital expenditures, independent power and other investments and nuclear fuel purchases:
FPL																$	3,934	$	3,633	$	3,241	$	2,903	$	4,285
NEER																5,521		4,661		3,701		3,637		4,681
Corporate and Other																181		83		75		142		495
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	$	9,636	$	8,377	$	7,017	$	6,682	$	9,461
Approximate 60-minute peak load (MW):^(f)
Summer season	22,900			21,576			21,440			21,619			22,256
Winter season	17,830			18,028			16,025			17,934			21,153
Average number of customer accounts (thousands):
Residential	4,169			4,097			4,052			4,027			4,004
Commercial	526			517			512			508			504
Industrial	10			10			9			9			9
Other	4			3			3			3			3
Total	4,709			4,627			4,576			4,547			4,520
Average price billed to customers (cents per kWh)	9.97			9.47			9.51			9.83			9.34

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$4 for every 1,000 ~~kilowatt-hours~~ kilowatt-hour (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 exceed ~~$800~~$800 million in any given calendar year, FPL may request an increase to the $4$4 surcharge to recover amounts above $400 million.

In January 2017, the ~~amount above~~Sierra Club filed a notice of appeal challenging the FPSC’s final order approving the 2016 rate agreement, which notice of appeal is pending before the Florida Supreme Court.

FPL Rates Effective January 2013 through December 2016 - Effective January 2013, pursuant to an FPSC final order approving a stipulation and settlement between FPL and several intervenors in FPL's base rate proceeding (2012 rate agreement), new retail base rates and charges for FPL were established resulting in an increase in retail base revenues of $350 million on an annualized basis. The 2012 rate agreement, provided for, among other things, the following:

a regulatory ROE of ~~$800 million~~10.50%. with a range of plus or minus 100 basis points;

Anan increase in annualized base revenue requirements as each of three FPL modernized power plants became operational in April 2013, April 2014 and April 2016;

subject to certain conditions, the right to reduce depreciation expense up to $400 million (reserve), provided that in any year of the 2012 rate agreement, FPL was required to amortize enough reserve to maintain an earned regulatory ROE within the range of 9.50% to 11.50% (see Rate Regulation above regarding a subsequent reduction in the reserve amount);

an interim cost recovery mechanism for storm restoration costs (see Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve below); and

an incentive mechanism whereby customers ~~will~~ receive 100% of certain gains, including but not limited to, gains from the purchase and sale of electricity and natural gas (including transportation and storage), up to a specified ~~threshold. The~~threshold; gains exceeding that specified threshold ~~will be~~were shared by FPL and its customers.

FPL Rates Effective March 2010 - December 2012 - Effective March 1, 2010, pursuant to an FPSC final order (2010 FPSC rate order), new retail base rates for FPL were established, resulting in an increase in retail base revenues of approximately ~~$75 million~~ ~~on an annualized basis. The 2010 FPSC rate order, among other things, also established a regulatory ROE of~~ ~~10.0%~~ ~~with a range of plus or minus~~ ~~100~~ basis points. In February 2011, the FPSC issued a final order approving a stipulation and settlement agreement between FPL and principal parties in FPL's 2009 rate case (2010 rate agreement). The 2010 rate agreement, which was effective through December 31, 2012, provided for, among other things, a reduction in depreciation expense (surplus depreciation credit) in any calendar year up to a cap in 2010 of ~~$267 million, a cap in subsequent years of~~ ~~$267 million~~ ~~plus the amount of any unused portion from prior years, and a total cap of~~ ~~$776 million~~ over the course of the 2010 rate agreement, provided that in any year of the 2010 rate agreement FPL was required to use enough surplus depreciation credit to maintain an earned regulatory ROE within the range of ~~9.0%~~ - ~~11.0%. The 2010 rate agreement also permitted incremental cost recovery through FPL's capacity clause for WCEC Unit No. 3 up to the amount of the projected annual fuel savings for customers.~~

NEER's revenue is recorded on the basis of commodities delivered, contracts settled or services rendered and includes estimated amounts yet to be billed to customers. Certain commodity contracts for the purchase and sale of power that meet the definition of a derivative are recorded at fair value with subsequent changes in fair value recognized as revenue. See Energy Trading below and Note 3.

Table of Contents

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In May 2014, the Financial Accounting Standards Board (FASB) issued ~~a new~~an accounting ~~standard~~standards update which provides guidance on the recognition of revenue from contracts with customers and requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows from an entity's contracts with customers. The ~~standard is~~standards update will be effective for NEE and FPL beginning January 1, ~~2017.~~ 2018 with early adoption on January 1, 2017 permitted. The standards update may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as an adjustment to retained earnings as of the date of initial application (modified retrospective method).

NEE and FPL are currently ~~evaluating~~reviewing individual contracts within various identified revenue streams in order to determine the ~~effect the adoption of~~impact, if any, this ~~standard~~standards update will have ~~if any,~~ on their consolidated financial statements. A number of industry-specific implementation issues are still unresolved and the final resolution of certain of these issues could impact NEE's and/or FPL's current accounting policies and/or revenue recognition patterns. NEE and FPL currently anticipate adopting the standards update on January 1, 2018 using the modified retrospective method.

Electric Plant, Depreciation and Amortization - The cost of additions to units of property of FPL and NEER is added to electric plant in service. In accordance with regulatory accounting, the cost of FPL's units of utility property retired, less estimated net salvage value, is charged to accumulated depreciation. Maintenance and repairs of property as well as replacements and renewals of items determined to be less than units of utility property are charged to other operations and maintenance (O&M) expenses. At December 31, ~~2014,~~2016, the electric ~~generating,~~generation, transmission, distribution and general facilities of FPL represented approximately ~~51%~~50%, 11%, 33% and 5%6%, respectively, of FPL's gross investment in electric utility plant in service and other property. Substantially all of FPL's properties are subject to the lien of FPL's mortgage, which secures most debt securities issued by FPL. A number of NEER's ~~generating~~generation and pipeline facilities are encumbered by liens securing various financings. The net book value of NEER's assets serving as collateral was approximately $~~10.4~~15.5 billion at December 31, ~~2014~~2016. The American Recovery and Reinvestment Act of 2009, as amended (Recovery Act), provided for an option to elect a cash grant (convertible investment tax credits (ITCs)) for certain renewable energy

~~Table of Contents~~

~~NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

property (renewable property). Convertible ITCs are recorded as a reduction in property, plant and equipment on NEE's and FPL's consolidated balance sheets and are amortized as a reduction to depreciation and amortization expense over the estimated life of the related property. At December 31, ~~2014~~2016 and ~~2013~~2015, convertible ITCs, net of amortization, were approximately ~~$1.6~~$2.1 billion (~~$159~~ ($147 million at FPL) and ~~$1.5~~$1.8 billion ($~~165~~153 million at FPL). At December 31, ~~2014~~2016 and ~~2013~~2015, approximately $1$289 million and $~~182~~207 million, respectively, of such convertible ITCs are included primarily in other receivables on NEE's consolidated balance sheets.

Depreciation of FPL's electric property is primarily provided on a straight-line average remaining life basis. FPL includes in depreciation expense a provision for fossil and solar plant dismantlement, interim asset removal costs, accretion related to asset retirement obligations (see Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs below), storm recovery amortization and amortization of pre-construction costs associated with planned nuclear units recovered through a cost recovery clause. For substantially all of FPL's property, depreciation studies are typically performed and filed with the FPSC ~~at least~~ every four years. ~~As part of the 2010 FPSC rate order, the FPSC approved new depreciation rates which became effective January 1, 2010.~~ In accordance with the 2012 rate agreement, FPL iswas not required to file depreciation studies during the effective period of the ~~agreement and the~~agreement; therefore, previously approved depreciation rates ~~remain~~which became effective January 1, 2010 remained in ~~effect.~~effect through December 2016. As discussed in ~~Revenue~~Revenues and Rates above, the use of reserve amortization ~~(the reduction of the reserve~~was permitted under the 2012 rate agreement. In accordance with the 2012 rate agreement, FPL recorded reserve amortization (reversal) of approximately $13 million, $(15) million and $(33) million in 2016, 2015 and 2014, respectively. The reserve is amortized as a reduction of (or reversed as an increase to) accrued asset removal costs which is reflected in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets. The weighted annual composite depreciation and amortization rate for FPL's electric utility plant in service, including capitalized software, but excluding the effects of decommissioning, dismantlement and the ~~surplus~~ depreciation ~~credit under~~adjustments discussed above, was approximately 3.4%, 3.3% and 3.3% for 2016, 2015 and 2014, respectively. As part of the ~~2010~~2016 rate ~~agreement) is permitted under~~agreement, the ~~2012~~FPSC approved new depreciation rates which became effective January 1, 2017. These new rates are expected to increase depreciation expense. The 2016 rate agreement also permits reserve amortization during the term of the agreement. See Revenues and ~~2010 rate agreements.~~Rates above. FPL files a twelve-month forecast with the FPSC each year which contains a regulatory ROE intended to be earned based on the best information FPL has at that time assuming normal weather. This forecast establishes a fixed targeted regulatory ROE. In order to earn the targeted regulatory ROE in each reporting period under the ~~2012 and 2010~~effective rate ~~agreements,~~agreement, reserve amortization is calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items is adjusted, in part, by reserve amortization or its reversal to earn the targeted regulatory ROE. In accordance with the 2012 and 2010 rate agreements, FPL recorded approximately $(33) million, $155 million and $480 million of reserve (reversal) amortization in 2014, 2013 and 2012, respectively. Beginning in 2013, the reserve is amortized as a reduction of (or reversed as an increase to) regulatory liabilities - accrued asset removal costs on NEE's and FPL's consolidated balance sheets. The weighted annual composite depreciation and amortization rate for FPL's electric utility plant in service, including capitalized software, but excluding the effects of decommissioning, dismantlement and the depreciation adjustments discussed above, was approximately ~~3.3%~~, ~~3.4%~~ ~~and~~ ~~3.3%~~ ~~for 2014, 2013 and 2012, respectively.~~

NEER's electric plant in service less salvage value, if any, are depreciated primarily using the straight-line method over their estimated useful lives. At December 31, ~~2014~~2016 and ~~2013,~~2015, wind, nuclear, natural gas and solar plants represented approximately ~~63%~~62% and 62%, ~~12%~~10% and ~~13%~~11%, 8%less than 1% and 9%3%, and 7%14% and 6%9%, respectively, of NEER's depreciable electric plant in service and other property. The estimated useful lives of NEER's plants range primarily from 25 to 30 years for wind, natural gas and solar plants and from 25 to 47 years for nuclear plants. NEER reviews the estimated useful lives of its fixed assets on an ongoing basis. NEER's oil and gas production assets, representing approximately 6%8% and 7%, respectively, of NEER's depreciable electric plant in service and other property at ~~both~~ December 31, ~~2014~~2016 and ~~2013,~~2015, are accounted for under the successful efforts method. Depletion expenses for the acquisition of reserve rights and development costs are recognized using the unit of production method.

Table of Contents

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Nuclear Fuel - FPL and NEER have several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel. See Note 13 - Contracts. FPL's and NEER's nuclear fuel costs are charged to fuel expense on a unit of production method.

Construction Activity - Allowance for funds used during construction (AFUDC) is a non-cash item which represents the allowed cost of capital, including an ROE, used to finance ~~FPL~~ construction projects. The portion of AFUDC attributable to borrowed funds is recorded as a reduction of interest expense and the remainder is recorded as other income. For FPL, FPSC rules limit the recording of AFUDC to projects that have an estimated cost in excess of 0.5% of a utility's plant in service balance and require more than one year to complete. FPSC rules allow construction projects below the 0.5% threshold as a component of rate base. During ~~2014, 2013~~each of 2016, 2015 and ~~2012,~~2014, FPL capitalized AFUDC at a rate of 6.34%, ~~6.52% and~~ ~~6.41%, respectively,~~ which amounted to approximately ~~$50~~$97 million, $8188 million and $7450 million, respectively. See Note 13 - Commitments.

FPL's construction work in progress includes construction materials, progress payments on major equipment contracts, engineering costs, AFUDC and other costs directly associated with the construction of various projects. Upon completion of the projects, these costs are transferred to electric utility plant in service and other property. Capitalized costs associated with construction activities are charged to O&M expenses when recoverability is no longer probable. ~~See Regulation above for information on recovery of costs associated with new nuclear capacity and solar generating facilities.~~

NEER capitalizes project development costs once it is probable that such costs will be realized through the ultimate construction of a power plant or sale of development rights. At December 31, ~~2014~~2016 and ~~2013~~2015, NEER's capitalized development costs totaled approximately $~~122~~193 million and $~~162~~133 million, respectively, which are included in noncurrent other assets on NEE's consolidated balance sheets. These costs include land rights and other third-party costs directly associated with the development of a new project. Upon commencement of construction, these costs either are transferred to construction work in progress or remain in other assets, depending upon the nature of the cost. Capitalized development costs are charged to O&M expenses when it is no longer probable that these costs will be realized.

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NEER's construction work in progress includes construction materials, ~~prepayments~~progress payments on ~~turbine generators and other~~major equipment contracts, third-party engineering costs, capitalized interest and other costs directly associated with the construction and development of various projects. Interest capitalized on construction projects amounted to approximately $~~104~~107 million, $~~109~~100 million and $~~139~~104 million during ~~2014, 2013~~2016, 2015 and ~~2012~~2014, respectively. Interest expense allocated from NextEra Energy Capital Holdings, Inc. (NEECH) to NEER is based on a deemed capital structure of 70% debt. Upon commencement of plant operation, costs associated with construction work in progress are transferred to electric plant in service and other property.

Asset Retirement Obligations - NEE and FPL each account for asset retirement obligations and conditional asset retirement obligations (collectively, AROs) under accounting guidance that requires a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated, with the offsetting associated asset retirement costs capitalized as part of the carrying amount of the long-lived assets. The asset retirement cost is subsequently allocated to expense, for NEE's non-rate regulated operations, and regulatory liability, for FPL, using a systematic and rational method over the asset’s estimated useful life. Changes in the ARO resulting from the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense, which is included in depreciation and amortization expense in the consolidated statements of ~~income.~~income for NEE's non-rate regulated operations, and ARO and regulatory liability, in the case of FPL. Changes resulting from revisions to the timing or amount of the original estimate of cash flows are recognized as an increase or a decrease in the asset retirement cost, or income when asset retirement cost is depleted, in the case of NEE's non-rate regulated operations, and ARO and regulatory liability, in the case of FPL. See Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs below and Note 12.

Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs - For ratemaking purposes, FPL accrues for the cost of end of life retirement and disposal of its nuclear, fossil and solar plants over the expected service life of each unit based on nuclear decommissioning and fossil and solar dismantlement studies periodically filed with the FPSC. In addition, FPL accrues for interim removal costs over the life of the related assets based on depreciation studies approved by the FPSC. As approved by the FPSC, FPL previously suspended its annual decommissioning accrual. For financial reporting purposes, FPL recognizes decommissioning and dismantlement liabilities in accordance with accounting guidance that requires a liability for the fair value of an ARO to be recognized in the period in which it is incurred. Any differences between expense recognized for financial reporting purposes and the amount recovered through rates are reported as a regulatory liability in accordance with regulatory accounting. See Revenues and Rates, Electric Plant, Depreciation and Amortization, Asset Retirement Obligations above and Note 12.

Nuclear decommissioning studies are performed at least every five years and are submitted to the FPSC for approval. FPL filed updated nuclear decommissioning studies with the FPSC in December ~~2010.~~2015. These studies reflect FPL's current plans, under the operating licenses, for prompt dismantlement of Turkey Point Units Nos. 3 and 4 following the end of plant operation with decommissioning activities commencing in 2032 and 2033, respectively, and provide for St. Lucie Unit No. 1 to be mothballed beginning in 2036 with decommissioning activities to be integrated with the prompt dismantlement of St. Lucie Unit No. 2 in 2043. These studies also assume that FPL will be storing spent fuel on site pending removal to a ~~U.S.~~United States (U.S.) government facility. The studies indicate FPL's portion of the ultimate costs of decommissioning its four nuclear units, including costs associated with

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spent fuel storage above what is expected to be refunded by the U.S. Department of Energy (DOE) under a spent fuel settlement agreement, to be approximately ~~$6.2~~$7.5 billion,, or ~~$2.6~~$3.0 billion expressed in ~~2014~~2016 dollars.

Restricted funds for the payment of future expenditures to decommission FPL's nuclear units are included in nuclear decommissioning reserve funds, which are included in special use funds on NEE's and FPL's consolidated balance sheets. Marketable securities held in the decommissioning funds are primarily classified as available for sale and carried at fair value. See Note 4. ~~FPL does not currently make contributions to the decommissioning funds, other than the reinvestment of dividends and interest.~~ Fund earnings, consisting of dividends, interest and realized gains and losses, net of taxes, are reinvested in the funds. Fund earnings, as well as any changes in unrealized gains and losses, are not recognized in income and are reflected as a corresponding offset in the related regulatory liability accounts. FPL does not currently make contributions to the decommissioning funds, other than the reinvestment of fund earnings. During ~~2014, 2013~~2016, 2015 and ~~2012~~2014 fund earnings on decommissioning funds were approximately ~~$91~~$102 million,, ~~$167~~ $96 million and ~~$98~~$91 million,, respectively. The tax effects of amounts not yet recognized for tax purposes are included in ~~accumulated~~ deferred income taxes.

Fossil and solar plant dismantlement studies are typically performed at least every four years and are submitted to the FPSC for approval. ~~FPL's latest~~In accordance with the 2012 rate agreement, FPL was not required to file fossil and solar ~~plant~~ dismantlement studies during the effective period of the agreement; therefore, previously approved studies which became effective January 1, 2010 remained in effect through December 2016 and resulted in an annual expense of ~~$18~~$18 million which is recorded in depreciation and amortization expense in NEE's and FPL's consolidated statements of income. As part of the 2016 rate agreement, the FPSC approved a new annual expense of $26 million based on FPL's 2016 fossil and solar dismantlement studies which became effective January 1, 2017. At December 31, ~~2014,~~2016, FPL's portion of the ultimate cost to dismantle its fossil and solar units is approximately ~~$746~~$1.3 billion, or $480 million~~, or~~ ~~$385 million~~ expressed in ~~2014~~2016 dollars. ~~In accordance with the 2012 rate agreement, FPL is not required to file fossil and solar dismantlement studies during the effective period of the agreement.~~

NEER records nuclear decommissioning liabilities for Seabrook Station (Seabrook), Duane Arnold Energy Center (Duane Arnold) and Point Beach Nuclear Power Plant (Point Beach) and dismantlement liabilities for its wind and solar facilities, when required in accordance with accounting guidance that requires a liability for the fair value of an ARO to be recognized in the period in which it is incurred. The ~~liability is~~liabilities are being accreted using the interest method through the date decommissioning or dismantlement activities are expected to be complete. See Note 12. At December 31, ~~2014~~2016 and ~~2013,~~2015, NEER's ARO, which is primarily related to nuclear decommissioning and wind and solar dismantlement, was approximately $~~462~~817 million and $~~434~~647 million, respectively, and was primarily determined using various internal and external data and applying a probability percentage to a variety of scenarios regarding the life of the plant and timing of ~~decommissioning.~~decommissioning or dismantlement. NEER's portion of the ultimate cost of decommissioning its nuclear plants, including costs associated

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with spent fuel storage above what is expected to be refunded by the DOE under a spent fuel settlement agreement, is estimated to be approximately $~~11.9~~11.8 billion, or $2.0 billion expressed in ~~2014~~2016 dollars. The ultimate cost to dismantle NEER's wind and solar facilities is estimated to be approximately$1.8 billion.

Seabrook files a comprehensive nuclear decommissioning study with the New Hampshire Nuclear Decommissioning Financing Committee (NDFC) every four years; the most recent study was filed in ~~2011.~~2015. Seabrook's decommissioning funding plan is also subject to annual review by the NDFC. Currently, there are no ongoing decommissioning funding requirements for Seabrook, Duane Arnold and Point Beach, however, the U.S. Nuclear Regulatory Commission (NRC), and in the case of Seabrook, the NDFC, has the authority to require additional funding in the future. NEER's portion of Seabrook's, Duane Arnold's and Point Beach's restricted funds for the payment of future expenditures to decommission these plants is included in nuclear decommissioning reserve funds, which are included in special use funds on NEE's consolidated balance sheets. Marketable securities held in the decommissioning funds are primarily classified as available for sale and carried at fair value. Market adjustments result in a corresponding adjustment to other comprehensive income (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 in NEE's consolidated statements of income. Fund earnings are recognized in income and are reinvested in the funds. See Note 4. The tax effects of amounts not yet recognized for tax purposes are included in ~~accumulated~~ deferred income taxes.

Major Maintenance Costs - FPL ~~uses the accrue-in-advance method for recognizing~~recognizes costs associated with planned major nuclear maintenance in accordance with regulatory treatment and records the related accrual as a regulatory liability. FPL expenses costs associated with planned fossil maintenance as incurred. FPL's estimated nuclear maintenance costs for each nuclear unit's next planned outage are accrued over the period from the end of the last outage to the end of the next planned outage. Any difference between the estimated and actual costs is included in O&M expenses when known. The accrued liability for nuclear maintenance costs at December 31, ~~2014~~2016 and ~~2013~~2015 totaled approximately ~~$50~~$65 million and ~~$70~~$48 million,, respectively, and is included in noncurrent regulatory liabilities ~~- other~~ on NEE's and FPL's consolidated balance sheets. For the years ended December 31, ~~2014, 2013~~2016, 2015 and ~~2012,~~2014, FPL recognized approximately $7689 million, $9290 million and $~~104~~76 million, respectively, in nuclear maintenance costs which are primarily included in O&M expenses in NEE's and FPL's consolidated statements of income.

NEER uses the deferral method to account for certain planned major maintenance costs. NEER's major maintenance costs for its nuclear ~~generating~~generation units and combustion turbines are capitalized and amortized on a unit of production method over the period from the end of the last outage to the beginning of the next planned outage. NEER's capitalized major maintenance costs, net of accumulated amortization, totaled approximately $~~141~~69 million and $9297 million at December 31, ~~2014~~2016 and ~~2013~~2015, respectively, and are included in noncurrent other assets on NEE's consolidated balance sheets. For the years ended December 31, 2016, 2015 and

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2014 ~~2013 and 2012~~, NEER amortized approximately $8174 million, $9379 million and $~~100~~81 million in major maintenance costs which are included in O&M expenses in NEE's consolidated statements of income.

Cash Equivalents - Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less.

Restricted Cash - At December 31, ~~2014~~2016 and ~~2013,~~2015, NEE had approximately $~~228~~311 million ($38120 million for FPL) and $~~215~~244 million ($3875 million for FPL), respectively, of restricted cash included in other current assets on NEE's and FPL's consolidated balance sheets, which was ~~restricted~~ primarily ~~for~~related to margin cash collateral ~~and~~requirements, debt service ~~payments.~~payments and bond proceeds held for construction at FPL. Where offsetting positions exist, restricted cash related to margin cash collateral is netted against derivative instruments. See Note 3.

Allowance for Doubtful Accounts - FPL maintains an accumulated provision for uncollectible customer accounts receivable that is estimated using a percentage, derived from historical revenue and write-off trends, of the previous five months of revenue. Additional amounts are included in the provision to address specific items that are not considered in the calculation described above. NEER regularly reviews collectibility of its receivables and establishes a provision for losses estimated as a percentage of accounts receivable based on the historical bad debt write-off trends for its retail electricity provider operations and, when necessary, using the specific identification method for all other receivables.

Inventory - FPL values materials, supplies and fossil fuel inventory using a weighted-average cost method. NEER's materials, supplies and fossil fuel inventories are carried at the lower of weighted-average cost or market, unless evidence indicates that the weighted-average cost (even if in excess of market) will be recovered with a normal profit upon sale in the ordinary course of business.

Energy Trading - NEE provides full energy and capacity requirements services primarily to distribution utilities, which include load-following services and various ancillary services, in certain markets and engages in power and gas marketing and trading activities to optimize the value of electricity and fuel contracts, ~~generating~~generation facilities and gas infrastructure assets, as well as to take advantage of projected favorable commodity price movements. Trading contracts that meet the definition of a derivative are accounted for at fair value and realized gains and losses from all trading contracts, including those where physical delivery is required, are recorded net for all periods presented. See Note 3.

Securitized Storm-Recovery Costs, Storm Fund and Storm Reserve - In connection with the 2007 storm-recovery bond financing (see Note 8 - FPL), the net proceeds to FPL from the sale of the storm-recovery property were used primarily to reimburse FPL for

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its estimated net of tax deficiency in its storm and property insurance reserve (storm reserve) and provide for a storm and property insurance reserve fund (storm fund). Upon the issuance of the storm-recovery bonds, the storm reserve deficiency was reclassified to securitized storm-recovery costs ~~and~~which is recorded as a current and noncurrent regulatory asset on NEE's and FPL's consolidated balance sheets. As storm-recovery charges are billed to customers (which are included in operating revenues), the securitized storm-recovery costs are amortized and included in depreciation and amortization expense in NEE's and FPL's consolidated statements of income. Marketable securities held in the storm fund are classified as available for sale and are carried at fair ~~value with market adjustments, including any other than temporary impairment losses, resulting in a corresponding adjustment to the storm reserve.~~value. See Note 4. Fund earnings, consisting of dividends, interest and realized gains and losses, net of taxes, are reinvested in the fund. Fund earnings, as well as any changes in unrealized gains and losses, are not recognized in income and are reflected as a corresponding adjustment to the storm reserve. The tax effects of amounts not yet recognized for tax purposes are included in ~~accumulated~~ deferred income taxes. The storm fund is included in special use funds on NEE's and FPL's consolidated balance sheets and was approximately $~~75 million~~ ~~and~~ $74 million at December 31, ~~2014~~2015. During the fourth quarter of 2016, all available funds were withdrawn from the storm fund to pay for the storm restoration costs associated with Hurricane Hermine and ~~2013, respectively. See Note 4.~~Hurricane Matthew (see below regarding Hurricane Hermine and Hurricane Matthew).

FPL was impacted by Hurricane Hermine in September 2016 and Hurricane Matthew in October 2016. Hurricane Matthew resulted in damage in much of FPL's service territory and caused approximately 1.2 million of FPL's customers to lose electrical service. Damage to FPL property was primarily limited to the transmission and distribution systems. Storm restoration costs eligible for recovery for both events totaled approximately $315 million, the majority of which relates to Hurricane Matthew. Prior to these storms, FPL's storm and property insurance reserve had the capacity to absorb approximately $112 million in additional storm restoration costs ($20 million of which was absorbed by Hurricane Hermine). At December 31, 2016, FPL's storm and property insurance reserve was fully depleted and storm restoration costs expected to be recoverable from customers exceeded the balance of the storm reserve by approximately $203 million. This deficiency has been deferred and recorded as a regulatory asset on NEE's and FPL's consolidated balance sheets. In February 2017, the FPSC approved FPL’s request to begin recovering eligible storm restoration costs over the reserve amount, plus approximately $117 million to replenish the reserve to the level authorized by the 2012 rate agreement. The recovery will take place through an interim surcharge that applies for a 12-month period starting March 1, 2017, with the amount collected subject to refund based on an FPSC prudence review.

The ~~storm~~replenished reserve ~~that was reestablished in an FPSC financing order related to the issuance of the storm-recovery bonds was~~will not initially be reflected on ~~NEE's~~NEE’s and ~~FPL's~~FPL’s consolidated balance sheets because the associated regulatory asset ~~did~~does not meet the specific recognition criteria under the accounting guidance for certain regulated entities. As a result, as the storm surcharge is billed to customers (which is recorded as operating revenues), the storm reserve will be recognized

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as a regulatory liability ~~as the storm-recovery charges are billed to customers~~ and charged to depreciation and amortization expense in ~~NEE's~~NEE’s and ~~FPL's~~FPL’s consolidated statements of income. Furthermore, the storm reserve will be reduced as storm costs are reimbursed. As of December 31, 2014, FPL had the capacity to absorb up to approximately $122 million in future prudently incurred storm restoration costs without seeking recovery through a rate adjustment from the FPSC or filing a petition with the FPSC.

Impairment of Long-Lived Assets - NEE evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset. The impairment loss to be recognized is the amount by which the carrying value of the long-lived asset exceeds the asset's fair value. In most instances, the fair value is determined by discounting estimated future cash flows using an appropriate interest rate. ~~See Note 4 - Nonrecurring Fair Value Measurements.~~

Goodwill and Other Intangible Assets - NEE's goodwill and other intangible assets are as follows:

Weighted-
Average
Useful Lives
December 31,
2014 2013
(years) (millions)
Goodwill:
Merchant reporting unit $ 72
$ 72
Wind reporting unit 47
49
Fiber-optic telecommunications reporting unit 28
28
Total goodwill $ 147
$ 149
Other intangible assets not subject to amortization, primarily land easements $ 143
$ 143
Other intangible assets subject to amortization:
Purchased power agreements 22 $ 348
$ 70
Customer lists 5 34
35
Other, primarily transmission and development rights, permits and licenses 24 105
98
Total 487
203
Less accumulated amortization (125 ) (112 )
Total other intangible assets subject to amortization - net $ 362
$ 91



	Weighted- Average Useful Lives	December 31,
	Weighted- Average Useful Lives	2016			2015
	(years)	(millions)
Goodwill (by reporting unit):
NEER segment:
Gas infrastructure, primarily Texas pipelines		$	641		$	635
Customer supply		72			72
Generation assets		38			43
Other		28			28
Total goodwill		$	779		$	778
Other intangible assets not subject to amortization, primarily land easements		$	143		$	143
Other intangible assets subject to amortization:
Customer relationships associated with gas infrastructure	41	$	700		$	720
Purchased power agreements	22	444			328
Other, primarily transmission and development rights and customer lists	19	81			136
Total		1,225			1,184
Accumulated amortization		(115		)	(120		)
Total other intangible assets subject to amortization - net		$	1,110		$	1,064

NEE's goodwill relates to various acquisitions which were accounted for using the purchase method of accounting. Other intangible assets subject to amortization are amortized, primarily on a straight-line basis, over their estimated useful lives. ~~For~~Amortization expense was approximately $35 million, $17 million and $15 million for the years ended December 31, ~~2014, 2013~~2016, 2015 and ~~2012, amortization expense was approximately $15 million,~~ ~~$13 million~~ ~~and~~ ~~$14 million~~,2014, respectively, and is expected to be approximately ~~$14~~$31 million, ~~$24~~$46 million, ~~$20~~$39 million, $26 million and $19 million ~~and $17 million~~ for ~~2015, 2016,~~ 2017, 2018, 2019, 2020 and ~~2019,~~2021, respectively.

Goodwill and other intangible assets are primarily included in noncurrent other assets on NEE's consolidated balance sheets. Goodwill and other intangible assets not subject to amortization are assessed for impairment at least annually by applying a fair value-based analysis. Other intangible assets subject to amortization are periodically reviewed when impairment indicators are present to assess recoverability from future operations using undiscounted future cash flows.

Pension ~~and Other Postretirement Plans~~Plan - NEE allocates net periodic pension ~~benefit~~ income to its subsidiaries based on the pensionable earnings of the subsidiaries' ~~employees; net periodic supplemental executive retirement plan (SERP) benefit costs to~~

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its subsidiaries based upon actuarial calculations by participant; and postretirement health care and life insurance benefits (other benefits) net periodic benefit costs to its subsidiaries based upon the number of eligible employees at each subsidiary.

employees. Accounting guidance requires recognition of the funded status of ~~benefit plans~~the pension plan in the balance sheet, with changes in the funded status recognized in other comprehensive income within shareholders' equity in the year in which the changes occur. Since NEE is the plan sponsor, and its subsidiaries do not have separate rights to the plan assets or direct obligations to their employees, this accounting guidance is reflected at NEE and not allocated to the subsidiaries. The portion of previously unrecognized actuarial gains and losses and prior service costs or credits that are estimated to be allocable to FPL as net periodic ~~benefit~~ (income) cost in future periods and that otherwise would be recorded in accumulated other comprehensive income (AOCI) are classified as regulatory assets and liabilities at NEE in accordance with regulatory treatment.

Stock-Based Compensation - NEE accounts for stock-based payment transactions based on grant-date fair value. Compensation costs for awards with graded vesting are recognized on a straight-line basis over the requisite service period for the entire award. See Note 10 - Stock-Based Compensation.

Income Taxes - Deferred income taxes are recognized on all significant temporary differences between the financial statement and tax bases of assets and ~~liabilities.~~liabilities, and are presented as noncurrent on NEE's and FPL's consolidated balance sheets. In connection with the tax sharing agreement between NEE and certain of its subsidiaries, the income tax provision at each applicable subsidiary reflects the use of 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

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income tax benefits or expenses are recorded at the corporate level. Included in other regulatory assets and other regulatory liabilities on NEE's and FPL's consolidated balance sheets is the revenue equivalent of the difference in ~~accumulated~~ deferred income taxes computed under accounting rules, as compared to regulatory accounting rules. The net regulatory asset totaled $~~250~~289 million ($~~236~~266 million for FPL) and $~~233~~283 million ($~~218~~268 million for FPL) at December 31, ~~2014~~2016 and ~~2013~~2015, respectively, and is being amortized in accordance with the regulatory treatment over the estimated lives of the assets or liabilities for which the deferred tax amount was initially recognized.

~~NEER recognizes ITCs as a reduction to income tax expense when the related energy property is placed into service.~~ Production tax credits (PTCs) are recognized as wind energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes and are recorded as a reduction of current income taxes payable, unless limited by tax law in which instance they are recorded as deferred tax assets. NEER recognizes ITCs as a reduction to income tax expense when the related energy property is placed into service. FPL recognizes ITCs as a reduction to income tax expense over the depreciable life of the related energy property. At December 31, 2016 and 2015, FPL’s accumulated deferred ITCs were approximately $123 million and $3 million, respectively, and are included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets. NEE and FPL record a deferred income tax benefit created by the convertible ITCs on the difference between the financial statement and tax bases of renewable property. For NEER, this deferred income tax benefit is recorded in income tax expense in the year that the renewable property is placed in service. For FPL, this deferred income tax benefit is offset by a regulatory liability, which is amortized as a reduction of depreciation expense over the approximate lives of the related renewable property in accordance with the regulatory treatment. At December 31, ~~2014~~2016 and ~~2013~~,2015, the net deferred income tax benefits associated with FPL's convertible ITCs were approximately $50$46 million and $52$48 million,, respectively, and are included in ~~other~~noncurrent regulatory assets and noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets.

A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets when it is more likely than not that such assets will not be realized. NEE recognizes interest income (expense) related to unrecognized tax benefits (liabilities) in interest income and interest expense, respectively, net of the amount deferred at FPL. At FPL, the offset to accrued interest receivable (payable) on income taxes is classified as a regulatory liability (regulatory asset) which will be amortized to income (expense) over a five-year period upon settlement in accordance with regulatory treatment. All tax positions taken by NEE in its income tax returns that are recognized in the financial statements must satisfy a more-likely-than-not threshold. NEE and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states, the most significant of which is Florida, and certain foreign jurisdictions. Federal tax liabilities, with the exception of certain refund claims, are effectively settled for all years prior to 2013. State and foreign tax liabilities, which have varied statutes of limitations regarding additional assessments, are generally effectively settled for years prior to 2009. At December 31, 2016, NEE had unrecognized tax benefits of approximately $40 million that, if disallowed, could impact the annual effective income tax rate. The amounts of unrecognized tax benefits and related interest accruals may change within the next 12 months; however, NEE and FPL do not expect these changes to have a significant impact on NEE’s or FPL’s financial statements. See Note 5.

Sale of Differential Membership Interests - Certain subsidiaries of NEER sold their Class B membership interest in entities that have ownership interests in wind and solar facilities, with generating capacity totaling approximately ~~4,490~~6,847 MW and 374 MW, respectively, at December 31, ~~2014,~~2016, to third-party investors. In exchange for the cash received, the holders of the Class B membership interests will receive a portion of the economic attributes of the facilities, including income tax attributes, for variable periods. The transactions are not treated as a sale under the accounting rules and the proceeds received are deferred and recorded as a liability in deferral related to differential membership interests - VIEs on NEE's consolidated balance sheets. The deferred amount is being recognized in benefits associated with differential membership interests - net in NEE's consolidated statements of income as the Class B members receive their portion of the economic attributes. NEE continues to operate and manage the wind and solar facilities, and consolidates the entities that own the wind and solar facilities.

Variable Interest Entities (VIEs) - An entity is considered to be a VIE when its total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, or its equity investors, as a group, lack the characteristics of having a controlling financial interest. A reporting company is required to consolidate a VIE as its primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. NEE and FPL evaluate whether an entity is a VIE whenever reconsideration events as defined by the accounting guidance occur. See Note 8.

~~Proposed~~ Leases - In February 2016, the FASB issued an accounting standards update which requires, among other things, that lessees recognize a lease liability, initially measured at the present value of the future lease payments; and a right-of-use asset for all leases (with the exception of short-term leases). The standards update will be effective for NEE and FPL beginning January 1, 2019. Early adoption is permitted. Lessees and lessors must apply a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. NEE and FPL are currently reviewing their portfolio of contracts and are in the process of determining the proper application of the standards update to these contracts in order to determine the impact the adoption will have on their consolidated financial statements, including timing of adoption.

Merger Termination - In ~~December~~ 2014, NEE and Hawaiian Electric Industries, Inc. (HEI) entered into an Agreement and Plan of Merger (the HEI merger agreement) pursuant to which Hawaiian Electric Company, Inc. (HECO), HEI's ~~wholly-owned~~wholly owned electric utility subsidiary, was to become a wholly owned subsidiary of NEE. In July 2016, the Hawaii Public Utilities Commission issued an order dismissing

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~will become~~NEE's and HECO's merger application and, as a ~~wholly-owned subsidiary of~~result, NEE ~~and each outstanding share of~~terminated the HEI ~~common stock will be converted into~~merger agreement. Pursuant to the ~~right to receive 0.2413 shares of NEE common stock. The companies are working to complete the merger by the end of 2015. However, completion~~terms of the ~~merger and the actual closing date depend upon the satisfaction of a number of conditions, including approval by~~ HEI ~~shareholders and the receipt of required regulatory approvals. The~~ merger agreement, ~~contains certain termination rights and provides that, upon termination of the merger agreement under specified circumstances,~~NEE paid HEI ~~or NEE, as the case may be, would be required to pay to the other party~~ a termination fee of $90 million ~~and reimburse the other party~~plus reimbursement to HEI for ~~up to $5 million of its documented~~ out-of-pocket expenses incurred in connection with the HEI merger ~~agreement.~~agreement of $5 million, which is included in merger-related expenses in NEE's consolidated statements of income for the year ended December 31, 2016.

Assets and Liabilities Associated with Assets Held for Sale - In April 2016, a subsidiary of NEER completed the sale of its ownership interest in merchant natural gas generation facilities located in Texas with a total generating capacity of 2,884 MW for net cash proceeds of approximately $456 million, after transaction costs and working capital adjustments. A NEER affiliate continued to operate the facilities included in the sale through September 2016. In connection with the sale and the related consolidating state income tax effects, a gain of approximately $254 million ($106 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2016 and is included in losses (gains) on disposal of assets - net. The carrying amounts of the major classes of assets and liabilities related to the facilities that were classified as held for sale on NEE's consolidated balance sheets as of December 31, 2015 primarily represent property, plant and equipment and the related long-term debt.

In 2016, a subsidiary of NEER initiated a plan, received internal authorization and completed the sale of its ownership interest in natural gas generation facilities located primarily in Pennsylvania with a total generating capacity of 840 MW for net cash proceeds of approximately $260 million, after transaction costs and working capital adjustments. In connection with the sale and the related consolidating state income tax effects, a gain of approximately $191 million ($113 million after tax) was recorded in NEE's consolidated statements of income for the year ended December 31, 2016 and is included in losses (gains) on disposal of assets - net.

In January 2017, an indirect wholly owned subsidiary of NEE completed the sale of its membership interests in its fiber-optic telecommunications business (FPL FiberNet) for net cash proceeds of approximately $1.1 billion, after repayment of $370 million of related long-term debt. In connection with the sale and the related consolidating state income tax effects, a gain of approximately $1.1 billion (approximately $700 million after tax) will be recorded in NEE's consolidated statements of income during the three-months ended March 31, 2017. The carrying amounts of the major classes of assets and liabilities related to FPL FiberNet that were classified as held for sale on NEE's consolidated balance sheets as of December 31, 2016 primarily represent property, plant and equipment and the related long-term debt.

2. Employee Retirement Benefits

Employee ~~Benefit Plans~~Pension Plan and Other ~~Postretirement Plan~~Benefits Plans - NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries. NEE also has a ~~SERP,~~supplemental executive retirement plan (SERP), which includes a non-qualified supplemental defined benefit pension component that provides benefits to a select group of management and highly compensated ~~employees. The impact of this SERP component is included within pension benefits in the following tables,~~employees, and ~~was not material to NEE's financial statements for the years ended~~ ~~December 31, 2014~~, ~~2013~~ ~~and~~ ~~2012. In addition to pension benefits, NEE~~ sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements. The total accrued benefit cost of the SERP and postretirement plans is approximately $325 million ($222 million for FPL) and $321 million ($230 million for FPL) at December 31, 2016 and 2015, respectively.

Pension Plan Assets, Benefit Obligations and Funded Status - The changes in assets, ~~and~~ benefit obligations and the funded status of the ~~plans and the plans' funded status~~pension plan are as follows:

Pension Benefits Other Benefits
2014 2013 2014 2013
(millions)
Change in plan assets:
Fair value of plan assets at January 1 $ 3,692
$ 3,385
$ 26
$ 26
Actual return on plan assets 203
455
2
2
Employer contributions^(a)
3
1
28
28
Participant contributions —
—
6
5
Benefit payments^(a)
(200 ) (149 ) (39 ) (35 )
Fair value of plan assets at December 31 $ 3,698
$ 3,692
$ 23
$ 26
Change in benefit obligation:

Obligation at January 1 $ 2,254
$ 2,372
$ 354
$ 397
Service cost 63
73
3
4
Interest cost 102
95
16
14
Participant contributions —
—
6
5
Plan amendments (11 ) —
—
—
Special termination benefits^(b)
—
46
—
—
Actuarial losses (gains) - net 264
(183 ) 20
(31 )
Benefit payments^(a)
(200 ) (149 ) (39 ) (35 )
Obligation at December 31^(c)
$ 2,472
$ 2,254
$ 360
$ 354
Funded status:

Prepaid (accrued) benefit cost at NEE at December 31 $ 1,226
$ 1,438
$ (337 ) $ (328 )
Prepaid (accrued) benefit cost at FPL at December 31 $ 1,186
$ 1,139
$ (234 ) $ (249 )



	2016			2015
	(millions)
Change in pension plan assets:
Fair value of plan assets at January 1	$	3,563		$	3,698
Actual return on plan assets	217			(8		)
Benefit payments	(129		)	(127		)
Fair value of plan assets at December 31	$	3,651		$	3,563
Change in pension benefit obligation:
Obligation at January 1	$	2,408		$	2,454
Service cost	62			70
Interest cost	105			97
Plan amendments	(19		)	—
Actuarial losses (gains) - net	47			(86		)
Benefit payments	(129		)	(127		)
Obligation at December 31^(a)	$	2,474		$	2,408
Funded status:
Prepaid pension benefit costs at NEE at December 31	$	1,177		$	1,155
Prepaid pension benefit costs at FPL at December 31	$	1,301		$	1,243

~~______________________~~_________________________

(a)

Employer contributions and benefit payments include only those amounts contributed directly to, or paid directly from, plan assets. FPL's portion of contributions related to SERP benefits was less than $~~1 million~~ ~~for~~ ~~2014~~ ~~and~~ ~~2013, respectively. FPL's portion of contributions related to other benefits was $27 million~~ ~~and $25 million for~~ ~~2014~~ ~~and~~ ~~2013, respectively.~~


~~(b)~~	~~Reflects an enhanced early retirement program offered in 2013 as part of an enterprise-wide cost savings initiative.~~


~~(c)~~	NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, ~~for its pension plans~~ at December 31, ~~2014~~2016 and ~~2013~~2015 was approximately $~~2,417~~2,439 million and $~~2,197~~2,366 million, respectively.

8882

Table of Contents

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~NEE's and FPL's prepaid (accrued) benefit cost shown above are included on the consolidated balance sheets as follows:~~

NEE FPL
Pension Benefits Other Benefits Pension Benefits Other Benefits
2014 2013 2014 2013 2014 2013 2014 2013
(millions)
Prepaid benefit costs $ 1,244
$ 1,456
$ —
$ —
$ 1,189
$ 1,142
$ —
$ —
Accrued benefit cost included in other current liabilities (4 ) (5 ) (23 ) (26 ) (2 ) (2 ) (19 ) (22 )
Accrued benefit cost included in other liabilities (14 ) (13 ) (314 ) (302 ) (1 ) (1 ) (215 ) (227 )
Prepaid (accrued) benefit cost at December 31 $ 1,226
$ 1,438
$ (337 ) $ (328 ) $ 1,186
$ 1,139
$ (234 ) $ (249 )

NEE's unrecognized amounts included in accumulated other comprehensive income (loss) yet to be recognized as components of prepaid ~~(accrued)~~pension benefit ~~cost~~costs are as follows:

Pension Benefits Other Benefits
2014 2013 2014 2013
(millions)
Components of AOCI:
Unrecognized prior service benefit (cost) (net of $1 and $4 tax benefit and $2 and $2 tax expense, respectively) $ (2 ) $ (8 ) $ 3
$ 4
Unrecognized gain (loss) (net of $10 tax benefit, $18 tax expense and $5 and $3 tax benefit, respectively) (16 ) 30
(5 ) (3 )
Total $ (18 ) $ 22
$ (2 ) $ 1



	2016			2015
	(millions)
Unrecognized prior service benefit (cost) (net of $2 tax expense and $1 tax benefit, respectively)	$	3		$	(2	)
Unrecognized losses (net of $55 and $38 tax benefit, respectively)	(87		)	(60		)
Total	$	(84	)	$	(62	)

NEE's unrecognized amounts included in regulatory assets ~~(liabilities)~~ yet to be recognized as components of net prepaid ~~(accrued)~~pension benefit ~~cost~~costs are as follows:


	Regulatory Assets (Liabilities) (Pension)					Regulatory Assets (Liabilities) (SERP and Other)
	2014		2013			2014			2013			2016			2015
	(millions)											(millions)
Unrecognized prior service cost (benefit)	$	10	$	25		$	(13	)	$	(14	)	$	(4	)	$	9
Unrecognized losses (gains)	128		(98		)	46			29
Unrecognized losses												280			232
Total	$	138	$	(73	)	$	33		$	15		$	276		$	241



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 700 Universe Boulevard Juno Beach, Florida 33408 (561) 694-4000	59-0247775



		Name of exchange on which registered
Securities registered pursuant to Section 12(b) of the Act:
NextEra Energy, Inc.:	Common Stock, $0.01 Par Value	New York Stock Exchange
	~~5.889%~~6.371% Corporate Units	New York Stock Exchange
	~~5.799%~~6.123% Corporate Units	New York Stock Exchange
Florida Power & Light Company: None



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



	Years Ended December 31,
	2016		2015			2014
			(millions)
Retail base	$	5,807	$	5,653		$	5,347
Fuel cost recovery	3,120		3,875			3,876
Net deferral of retail fuel revenues	—		(1		)	—
Net recognition of deferred retail fuel revenues	6		—			—
Other cost recovery clauses and pass-through costs, net of any deferrals	1,467		1,645			1,766
Other, primarily wholesale and transmission sales, customer-related fees and pole attachment rentals	495		479			432
Total	$	10,895	$	11,651		$	11,421



	Years Ended December 31,
	2014		2013		2012
			(millions)
Retail base	$	5,347	$	4,951	$	4,246
Fuel cost recovery	3,876		3,334		3,815
Net deferral of retail fuel revenues	—		—		(44		)
Net recognition of previously deferred retail fuel revenues	—		44		—
Other cost recovery clauses and pass-through costs, net of any deferrals	1,766		1,837		1,858
Other, primarily wholesale and transmission sales, customer-related fees and pole attachment rentals	432		279		239
Total	$	11,421	$	10,445	$	10,114



FPL Facilities	Location	No. of Units	Fuel	Net Capability (MW)^(a)
Fossil
Combined-cycle
Cape Canaveral	Cocoa, FL	1	Gas/Oil	1,210
Fort Myers	Fort Myers, FL	1	Gas	1,436
Lauderdale	Dania, FL	2	Gas/Oil	884
Manatee	Parrish, FL	1	Gas	1,143
Martin	Indiantown, FL	1	Gas/Oil/Solar Thermal	1,135	^(b)
Martin	Indiantown, FL	2	Gas	938
Riviera	Riviera Beach, FL	1	Gas/Oil	1,212
Sanford	Lake Monroe, FL	2	Gas	2,010
Turkey Point	Florida City, FL	1	Gas/Oil	1,192
West County	West Palm Beach, FL	3	Gas/Oil	3,657

Steam turbines
Manatee	Parrish, FL	2	Gas/Oil	1,618
Martin	Indiantown, FL	2	Gas/Oil	1,649
St. Johns River Power Park	Jacksonville, FL	2	Coal/Petroleum Coke	254	^(c)
Scherer	Monroe County, GA	1	Coal	643	^(d)
Turkey Point	Florida City, FL	1	Gas/Oil	396

Simple-cycle combustion turbines
Fort Myers	Fort Myers, FL	2	Gas/Oil	319

Gas turbines
Fort Myers	Fort Myers, FL	12	Oil	648
Lauderdale	Dania, FL	24	Gas/Oil	840
Port Everglades	Port Everglades, FL	12	Gas/Oil	420

Nuclear
St. Lucie	Hutchinson Island, FL	2	Nuclear	1,821	^(e)
Turkey Point	Florida City, FL	2	Nuclear	1,632

Solar PV
DeSoto	Arcadia, FL	1	Solar PV	25
Space Coast	Cocoa, FL	1	Solar PV	10
TOTAL				25,092	^(f)



Nominal Voltage		Overhead Lines Circuit/Pole Miles		Trench and Submarine Cables Miles
500	kV	1,106	^(a)	—
230	kV	3,188		25
138	kV	1,580		52
115	kV	758		—
69	kV	164		14
Total circuit miles		6,796		91
Less than 69 kV (pole miles)		42,321		25,411


(a)	~~2013 amounts were reclassified to conform to current year's presentation. See Note 4 - Nonrecurring Fair Value Measurements.~~


~~(c)~~(b)	2013 includes an after-tax gain from discontinued operations of $231 ~~million. See Note 6.~~million related to the sale of hydropower generation plants.


~~(d)~~(c)	~~2012 includes~~Includes assets held for sale of approximately $452 million in 2016, $1,009 million in 2015 and $335 ~~million.~~


~~(e)~~	~~Includes the net change~~million in ~~unbilled sales.~~


~~(f)~~	~~Winter season includes November~~2012. See Note 1 - Assets and ~~December of the current year and January to March of the following year (for 2014, through February 20, 2015).~~Liabilities Associated with Assets Held for Sale.


	Net Income (Loss) Attributable to NEE								Earnings (Loss) Per Share, assuming dilution								Net Income (Loss) Attributable to NEE							Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution
	Years Ended December 31,								Years Ended December 31,								Years Ended December 31,							Years Ended December 31,
	2014			2013		2012			2014			2013		2012			2016		2015		2014			2016		2015		2014
	(millions)																(millions)
FPL	$	1,517		$	1,349	$	1,240		$	3.45		$	3.16	$	2.96		$	1,727	$	1,648	$	1,517		$	3.71	$	3.63	$	3.45
NEER^(a)	985			556		687			2.24			1.30		1.64			1,125		1,092		989			2.41		2.41		2.25
Corporate and Other	(37		)	3		(16		)	(0.09		)	0.01		(0.04		)	60		12		(41		)	0.13		0.02		(0.10		)
NEE	$	2,465		$	1,908	$	1,911		$	5.60		$	4.47	$	4.56		$	2,912	$	2,752	$	2,465		$	6.25	$	6.06	$	5.60


(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.~~debt.


(a)	For 2016, 2015 and 2014, ~~2013~~approximately $233 million of losses, $175 million of gains and ~~2012,~~ $171 million of ~~the~~ gains, ~~$54 million of losses and $37 million of losses,~~ respectively, are included in NEER's net income; the balance is included in Corporate and Other.


(b)	For 2016, 2015 and 2014, approximately $2 million of losses, $14 million of losses and $1 million of ~~gains~~income, respectively, are ~~included in NEER's net income; the balance is included in Corporate and Other. For 2013 and 2012, all of the gains are included in NEER's net income.~~


~~(c)~~	~~For 2013, $216 million of the gain is~~ included in NEER's net income; the balance is included in Corporate and Other.


~~(d)~~(c)	~~For 2014, all of the gain is included in NEER's net income. For 2013, $41~~Approximately $276 million of the ~~loss~~gains is included in NEER's net income; the balance is included in Corporate and Other. See Note 1 - Assets and Liabilities Associated with Assets Held for Sale and Note 5.



	Increase (Decrease) From Prior Period
	Years Ended December 31,
	2016			2015
	(millions)
Investment in plant in service^(a)	$	131		$	77
Change in amount of equity used to finance investments	(42		)	22
Nonrecoverable expenses	(16		)	(15		)
Woodford shale investment	(10		)	5
Cost recovery clause earnings	11			5
AFUDC - equity	6			32
Other	(1		)	5
Increase in net income	$	79		$	131



	Increase (Decrease) From Prior Period
	Years Ended December 31,
	2014			2013
	(millions)
New investments^(a)	$	129		$	132
Existing assets^(a)	26			(13		)
Gas infrastructure^(b)	(27		)	17
Customer supply and proprietary power and gas trading^(b)	16			(4		)
Asset sales and restructuring activities	6			(12		)
NEP-related charge and costs	(67		)	—
Interest expense, differential membership costs and other	(30		)	(33		)
Change in unrealized mark-to-market non-qualifying hedge activity^(c)(d)	225			(17		)
Change in OTTI losses on securities held in nuclear decommissioning funds, net of OTTI reversals^(d)	—			(30		)
Gain on 2013 discontinued operations^(e)	(216		)	216
Change in Maine fossil gain/loss^(f)	53			(41		)
Charges associated with the 2013 impairment of the Spain solar projects^(f)	342			(342		)
Operating loss of the Spain solar projects^(f)	(28		)	(4		)
Increase (decrease) in net income less net income attributable to noncontrolling interests	$	429		$	(131	)


(b)	Excludes allocation of interest expense and corporate general and administrative expenses.


(c)	~~See Note 3 and Overview - Adjusted Earnings related to derivative instruments.~~Includes differential membership interest costs.


(d)	See ~~table in Overview - Adjusted Earnings for additional detail.~~


~~(e)~~	~~See Note 6 and Overview - Adjusted Earnings for additional information.~~


~~(f)~~	~~See Note 4 - Nonrecurring Fair Value Measurements and~~ Overview - Adjusted Earnings for additional information.


										Maturity Date													Maturity Date
	FPL			NEECH			Total				FPL	NEECH	FPL			NEECH				Total				FPL	NEECH
				(millions)												(millions)
Bank revolving line of credit facilities^(a)	$	3,000		$	4,850		$	7,850			(b)	(b)	$	2,916		$	4,964			$	7,880			2018 - 2022	2018 - 2022
Less letters of credit	(3		)	(843		)	(846		)
Issued letters of credit^(b)													(3		)	(382		)		(385		)
	2,997			4,007			7,004						2,913			4,582				7,495

Revolving credit facility	235			—			235				May 2015
Less borrowings	—			—			—
Revolving credit facilities													1,200			1,360				2,560				2017 - 2019	2017 - 2022
Borrowings^(b)													(1,000		)	—				(1,000		)
	235			—			235						200			1,360				1,560

Letter of credit facilities^(c)	—			650			650					2017	—			650				650					2017 - 2019
Less letters of credit	—			(313		)	(313		)
Issued letters of credit^(b)													—			(312		)		(312		)
	—			337			337						—			338				338

Subtotal	3,232			4,344			7,576						3,113			6,280				9,393

Cash and cash equivalents(b)	14			562			576						35			684				719
Less commercial paper	(1,142		)	-			(1,142		)
Outstanding commercial paper and other short-term debt^(b)													(1,433		)	(40		)		(1,473		)
Net available liquidity	$	2,104		$	4,906		$	7,010					$	1,715		$	6,924		^(d)	$	8,639		^(d)


~~(b)~~	~~$500~~ Approximately $2,315 million of FPL's and ~~$750~~$3,730 million of NEECH's bank revolving line of credit facilities expire in ~~2016, essentially all~~2022.


(b)	As of ~~the remaining facilities at each of FPL and NEECH expire in 2020.~~January 31, 2017.


(d)	Excludes two variable rate bi-lateral term loan agreements totaling $7.5 billion discussed below.



	Amount	Amount Remaining Available at December 31, 2016	Rate	Maturity Date	Purpose
	(millions)
Senior secured revolving credit facility^(a)	$250	$250	Variable	2019	Working capital, expansion projects, acquisitions and general business purposes
Senior secured limited-recourse revolving loan facility^(b)	$150	$—	Variable	2020	General business purposes


(a)	Includes principal, interest, ~~and~~ interest rate ~~swaps.~~contracts and payments by NEE under stock purchase contracts. Variable rate interest was computed using December 31, ~~2014~~2016 rates. See Note 11.


(c)	Represents required capacity and minimum charges under long-term purchased power and fuel contracts, projected capital expenditures through 2021 and the purchase price of the Indiantown generation facility (see Note 13 - ~~Contracts),~~Commitments and ~~projected capital expenditures through 2019 (see Note 13~~ - ~~Commitments)~~Contracts).


(d)	~~Represents firm commitments primarily in connection with construction and development activities and fuel-related contracts. See Note 13 - Commitments and - Contracts.~~


~~(g)~~(e)	Represents expected cash payments adjusted for inflation for estimated costs to perform asset retirement activities.


~~(h)~~(f)	At December 31, ~~2014,~~2016, FPL had approximately ~~$3,449~~$3,665 million in restricted funds for the payment of its portion of future expenditures to decommission ~~FPL’s~~the Turkey Point and St. Lucie nuclear units, which are included in NEE’s and FPL’s special use funds. See Note 12.