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ORDER NO. PSC-2021-0409-FOF-EI DOCKET NO, 20210127-E1 PAGE 6 The exchange of FPL's securities may be by way of an exchange of a security of FPL for another security or securities of FPL or of one of its subsidiaries or affiliates, or the exchange of a security of FPL or of one of its subsidiaries or affiliates for the security or securities of another entity. The manner of issuance and sale and/or exchange of securities will be dependent upon the type of security being offered, the type of transaction in which the securities are being issued and sold and/or exchanged and market conditions at the time of the issuance and sale and/or exchange. The short-term securities will have maturities of not more than twelve months and may be secured or unsecured, subordinated or unsubordinated. FPL may enter into warrants, options, rights, interest rate swaps, currency swaps or other derivative instruments, refunding transactions or other arrangements relating to, as well as contracts for the purchase or sale of, short-term securities. Consistent with Securities and Exchange Commission "no -action" letters, FPL may issue and sell commercial paper without compliance with the registration requirements of the Securities Act of 1933, as amended, subject to certain conditions. The short-term securities are issued to provide funds to temporarily finance portions of FPL's or FCC's construction program and capital commitments and for other corporate purposes. Also, during 2022 and 2023, FPL may need short-term financing for, among other purposes, seasonal fuel requirements, for contingency financing such as fuel adjustment under -recoveries or storm restoration costs, and for the temporary funding of maturing or called long-term debt or equity securities. The interest rate that FPL could pay on debt securities will vary depending on the type of debt instruments and the terms thereof, including specifically the tenor (i.e., the term) of the debt and whether the debt is secured or unsecured and subordinated or unsubordinated, as well as market conditions. A new series of 50 -year variable rate notes was issued by FPL on March 1, 2021, which variable rate is based on the three-month London Interbank Offered Rate minus 0.30%. A new series of 2 -year variable rate notes was issued by FPL on May 10, 2021, which variable rate is based on a compounded secured overnight financing rate plus 0.25%. A new series of 25 -year variable rate revenue refunding bonds was issued by the Miami -Dade County Industrial Development Authority on May 13, 2021, which proceeds were loaned to FPL under a loan agreement, and which variable rate is established at various intervals by the remarketing agent for such bonds. The dividend rate for preferred or preference stock is similarly affected by the terms of the offering. It is estimated that a new issue of FPL preferred stock as of June 30, 2021, would have carried a dividend yield of approximately 3.75% to 4.25%. In addition, FPL may from time -to -time issue instruments of guaranty, collateralize debt and other obligations, issue other securities, and arrange for the issuance of letters of credit and guaranties, in any such case to be issued or arranged by FPL or by one or more of its subsidiaries for the benefit of FPL's or FCG's regulated utility operations. FPL confirms that any such