NextEra Energy NEE

Production tax credits (PTCs) are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes 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 and FPL recognize ITCs as a reduction to income tax expense when the related energy property is placed into service. Prior to 2025, FPL recognizes recognized ITCs as a reduction to income tax expense over the depreciable life of the related energy property. At As of December 31, 2024 2025 and 2023, 2024, FPL’s accumulated deferred ITCs were approximately $966 $1,079 million and $997 $966 million, respectively, and are included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets. For taxable years beginning after 2022, renewable Clean energy tax credits generated during the taxable year can be transferred to an unrelated purchaser for cash and are accounted for under Accounting Standards Codification 740 – Income Taxes. Proceeds resulting from the sales of renewable clean energy tax credits for the years ended December 31, 2025 and 2024 and 2023 of approximately $1,527 million ($180 million for FPL) and $1,304 million and $370 million, ($0 million for FPL), respectively, are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE’s consolidated statements of cash flows. In connection with entering into the agreements to sell clean energy tax credits, NEECH provides certain indemnifications to the purchasers regarding the existence and qualifications of such credits. NEE has not recorded any material liability related to these indemnifications after considering the nature of the indemnifications and NEE’s experience in generating and utilizing clean energy tax credits. NEE's exposure to refund credits sold generally terminates based on the individual purchaser’s tax return statute of limitations which cannot be estimated.

Hedges on Owned Assets Trading Non- FPL Cost NEE Total Qualifying Recovery Clauses (millions) Fair value of contracts outstanding at December 31, 2022 $ 1,177 $ (3,921) $ 16 $ (2,728) Reclassification to realized at settlement as of contracts (369) 154 (9) (224) Value of contracts acquired 6 95 — 101 Net option premium purchases (issuances) 183 17 — 200 Changes in fair value excluding reclassification to realized 340 2,178 5 2,523 Fair value of contracts outstanding at December 31, 2023 $ 1,337 $ (1,477) $ 12 $ (128) Reclassification to realized at settlement of contracts (373) 190 (24) (207) Value of contracts acquired 2 24 — 26 Net option premium purchases (issuances) (2) 23 — 21 Changes in fair value excluding reclassification to realized 380 (284) 50 146 Fair value of contracts outstanding at as of December 31, 2024 1,344 (1,524) 38 (142) Reclassification to realized at settlement of contracts (766) 516 35 (215) Value of contracts acquired 46 (7) — 39 Net option premium purchases (issuances) 29 20 — 49 Changes in fair value excluding reclassification to realized 680 (209) (49) 422 Fair value of contracts outstanding as of December 31, 2025 1,333 (1,204) 24 153 Net margin cash collateral paid (received) (475) (86) Total mark-to-market energy contract net assets (liabilities) at as of December 31, 2024 2025 $ 1,344 1,333 $ (1,524) (1,204) $ 38 24 $ (617) 67

In November 2024, NEE was named as defendant in an antitrust lawsuit (Avangrid, Inc. et al. v. NextEra Energy, Inc.) filed in the U.S. District Court for the District of Massachusetts. This lawsuit seeks The original complaint sought damages of $350 million, which are would be tripled in the event of a finding of monopolization under the Sherman Act, from the defendants for alleged violations of federal and state antitrust laws, as well as Massachusetts state laws. In January September 2025, NEE filed a the U.S. District Court for the District of Massachusetts dismissed the alleged violations of federal and state antitrust laws. In December 2025, the court heard oral argument on NEE's motion to dismiss and a motion to transfer venue. the remaining Massachusetts state law claims. NEE does not believe that it should have any liability with respect to is vigorously defending against the remaining claims in this matter. proceeding.

If any of NEE's or FPL's nuclear generation facilities are not operated for any reason The productivity increases and competitive advantages NEE and FPL plan to achieve through the life use of their respective operating licenses or planned license extensions, NEE or FPL artificial intelligence (AI) technologies may not be required to increase depreciation rates, incur impairment charges realized and accelerate future decommissioning expenditures, any the use of and reliance on AI may present certain risks, both of which could materially adversely affect their business, financial condition, results of operations and prospects.