Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2014 |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting and Reporting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES |
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Revenue—Revenue recognized for the three and nine months ended September 30, 2014 and 2013, includes operating revenues from operations located outside of the U.S. This revenue was approximately $20 million and $13 million for the three months ended September 30, 2014 and 2013, respectively, and $61 million and $31 million for the nine months ended September 30, 2014 and 2013, respectively. |
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In May 2014, the Financial Accounting Standards Board issued a new accounting standard 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 effective for NEP beginning January 1, 2017. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its financial statements. |
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Inventories—Spare parts inventories are stated at the lower of weighted average cost or market and are included in other current assets in NEP’s condensed consolidated balance sheets. Spare parts inventory was approximately $6 million and $4 million as of September 30, 2014 and December 31, 2013, respectively. |
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Property, Plant and Equipment—net and Construction Work in Progress—Property, plant and equipment consists primarily of development, engineering and construction costs for the renewable energy assets, equipment, land, substations and transmission lines. Property, plant and equipment, excluding land, is recorded at cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to 30 years, commencing on the date the assets are placed in service. Maintenance and repairs of property, plant and equipment are charged to operations and maintenance expense, as incurred. |
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Convertible Investment Tax Credits (CITCs) of approximately $595 million and $445 million as of September 30, 2014 and December 31, 2013, respectively, are recorded as a reduction in property, plant and equipment—net in the condensed consolidated balance sheets and are amortized as a corresponding reduction to depreciation expense over the estimated life of the related asset. As of September 30, 2014, NEP had recorded a CITC receivable of approximately $24 million associated with the Genesis Solar project which is included in accounts receivable on NEP's condensed consolidated balance sheets. |
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Construction work in progress includes construction materials, turbine generators, solar panel assemblies and other equipment, third-party engineering costs, capitalized interest and other costs directly associated with the development and construction of the various projects. Upon commencement of plant operations, costs associated with construction work in progress are transferred to property, plant and equipment—net. |
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Construction work in progress decreased and property, plant and equipment—net and CITCs increased at September 30, 2014, primarily due to the second unit of the Genesis Solar project and the Bluewater project going into service in March 2014 and July 2014, respectively. |
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Total net long-lived assets, including construction work in progress, held by operations outside the U.S. amounted to approximately $724 million and $626 million, respectively, as of September 30, 2014 and December 31, 2013. |
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Immaterial Restatement—Subsequent to the issuance of NEP's combined financial statements as of December 31, 2013, it was determined that Income tax expense and Other comprehensive loss for the year ended December 31, 2013 were overstated by approximately $4 million and $1 million, respectively, and the Deferred tax liability balance as of December 31, 2013 was overstated by approximately $5 million. The impact of this error had no impact on cash flows from operating, investing or financing activities. As a result, the prior periods in the accompanying financial statements have been corrected to appropriately reflect these balances in the condensed consolidated statements of income, condensed consolidated statements of comprehensive income, condensed consolidated balance sheets, condensed consolidated statements of cash flows, Note 2, Note 3 and Note 8. |
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Noncontrolling Interests—After the completion of NEP's offering, NEP owns a controlling, non-economic general partner interest and a 20.1% limited partner interest in NEP OpCo and NEE Equity owns a noncontrolling 79.9% limited partner interest in NEP OpCo. The following table reflects the changes in NEP's noncontrolling interest balance for the three and nine months ended September 30, 2014: |
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| Noncontrolling |
Interest |
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Noncontrolling interest at December 31, 2013 and June 30, 2014 | $ | — | |
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Contributions from noncontrolling interest, net of returns of capital | 171 | |
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Comprehensive income attributable to noncontrolling interest | 14 | |
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Noncontrolling interest at September 30, 2014 | $ | 185 | |
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The contributions from NEP's offering primarily reflect the value of the underlying net assets sold to third parties in NEP's offering. |
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Cash Flows—Following the offering, NEP will present transactions with related parties where it does not directly receive the cash as cash transactions on its condensed consolidated statement of cash flows. |