Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | NEXTERA ENERGY PARTNERS, LP |
Entity Central Index Key | 1,603,145 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 29,668,745 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | [1] | Sep. 30, 2015 | Sep. 30, 2014 | [1] | ||
Income Statement [Abstract] | |||||||
OPERATING REVENUES | $ 103 | $ 97 | $ 297 | $ 267 | |||
OPERATING EXPENSES | |||||||
Operations and maintenance | 22 | 18 | 64 | 53 | |||
Depreciation and amortization | 31 | 24 | 90 | 67 | [2] | ||
Transmission | 1 | 1 | 2 | 2 | |||
Taxes other than income taxes and other | 3 | 2 | 10 | 5 | |||
Total operating expenses | 57 | 45 | 166 | 127 | |||
OPERATING INCOME | 46 | 52 | 131 | 140 | |||
OTHER INCOME (DEDUCTIONS) | |||||||
Interest expense | (28) | (28) | (79) | (73) | |||
Benefits associated with differential membership interests - net | 3 | 0 | 10 | 0 | [2] | ||
Equity in earnings of equity method investees | 0 | 0 | (1) | (1) | |||
Other - net | (4) | 0 | (4) | 0 | |||
Total other deductions - net | (29) | (28) | (74) | (74) | |||
INCOME BEFORE INCOME TAXES | 17 | 24 | 57 | 66 | |||
INCOME TAXES | 3 | 1 | 11 | 14 | |||
NET INCOME | 14 | 23 | [3] | 46 | 52 | [2],[3] | |
Less net income prior to initial public offering for NEP's initial portfolio | 0 | 0 | 0 | 28 | |||
Less net income attributable to noncontrolling interest | [4] | 13 | 20 | 40 | 21 | ||
NET INCOME ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 1 | $ 3 | $ 6 | $ 3 | |||
Weighted average number of common units outstanding - basic and assuming dilution (in shares) | 22.6 | 18.7 | 20.5 | 18.7 | |||
Earnings per common unit attributable to NextEra Energy Partners, LP - basic and assuming dilution (in dollars per share) | $ 0.05 | $ 0.17 | $ 0.28 | $ 0.17 | |||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[3] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[4] | The calculation of net income attributable to noncontrolling interest includes the pre-acquisition net income of the 2015 acquisitions. See Note 2. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | [2] | Sep. 30, 2015 | Sep. 30, 2014 | [2] | ||
Statement of Comprehensive Income [Abstract] | |||||||
NET INCOME | $ 14 | $ 23 | [1] | $ 46 | $ 52 | [1],[3] | |
Net unrealized gains (losses) on cash flow hedges: | |||||||
Effective portion of net unrealized losses (net of income tax benefit of $1 for each of the periods presented) | (11) | (2) | (9) | (15) | |||
Reclassification from accumulated other comprehensive loss to net income (net of income tax expense of less than $1, less than $1, $1 and less than $1, respectively) | 1 | 1 | 4 | 3 | |||
Net unrealized losses on foreign currency translation (net of income tax benefit of less than $1, $1, $2 and $1, respectively) | (8) | (7) | (18) | (10) | |||
Total other comprehensive loss, net of tax | (18) | (8) | (23) | (22) | |||
COMPREHENSIVE INCOME (LOSS) | (4) | 15 | 23 | 30 | |||
Less comprehensive income prior to initial public offering for NEP's initial portfolio | 0 | 0 | 0 | 14 | |||
Less comprehensive income attributable to non-controlling interest | [4] | (1) | 13 | 21 | 14 | ||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ (3) | $ 2 | $ 2 | $ 2 | |||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[3] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | ||||||
[4] | The calculation of comprehensive income (loss) attributable to noncontrolling interest includes the pre-acquisition comprehensive income of the 2015 acquisitions. See NoteĀ 2. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | [1] | Sep. 30, 2015 | Sep. 30, 2014 | [1] | |
Statement of Comprehensive Income [Abstract] | ||||||
Effective portion of net unrealized gains (losses), tax expense (benefit) | $ (1) | $ (1) | $ (1) | $ (1) | ||
Reclassification from accumulated other comprehensive income to net income, tax expense | 1 | 1 | 1 | 1 | ||
Unrealized gains (losses) on foreign currency translation, tax benefit | $ 1 | $ 1 | $ 2 | $ 1 | ||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 696 | $ 103 | |
Accounts receivable | 48 | 32 | |
Due from related parties | 34 | 219 | |
Restricted cash ($13 and $55 related to VIEs, respectively) | 16 | 82 | |
Prepaid expenses | 4 | 4 | |
Other current assets | 13 | 10 | |
Total current assets | 811 | 450 | |
Non-current assets: | |||
Property, plant and equipment - net ($707 and $722 related to VIEs, respectively) | 3,145 | 3,276 | |
Construction work in progress | 2 | 9 | |
Deferred income taxes | 151 | 144 | |
Investments in equity method investees - VIEs | 18 | 19 | |
Other non-current assets | 90 | 90 | |
Total non-current assets | 3,406 | 3,538 | |
TOTAL ASSETS | 4,217 | 3,988 | |
Current liabilities: | |||
Accounts payable and accrued expenses | 17 | 119 | |
Short-term debt | 12 | 0 | |
Due to related parties | 14 | 37 | |
Current maturities of long-term debt | 86 | 86 | |
Accrued interest | 13 | 23 | |
Other current liabilities | 27 | 21 | |
Total current liabilities | 169 | 286 | |
Non-current liabilities: | |||
Long-term debt | 1,824 | 1,847 | |
Deferral related to differential membership interests - VIEs | 419 | 428 | |
Accumulated deferred income taxes | 52 | 75 | |
Asset retirement obligation | 29 | 28 | |
Non-current due to related party | 18 | 19 | |
Other non-current liabilities | 25 | 25 | |
Total non-current liabilities | 2,367 | 2,422 | |
TOTAL LIABILITIES | $ 2,536 | $ 2,708 | |
COMMITMENTS AND CONTINGENCIES | |||
EQUITY | |||
Limited partners (common units issued and outstanding - 29.7 and 18.7, respectively) | $ 897 | $ 551 | |
Accumulated other comprehensive loss | (7) | (3) | |
Noncontrolling interest | 791 | 732 | |
TOTAL EQUITY | 1,681 | 1,280 | |
TOTAL LIABILITIES AND EQUITY | $ 4,217 | $ 3,988 | |
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | [1] |
Restricted cash | $ 16 | $ 82 | |
Property, plant and equipment, net | $ 3,145 | $ 3,276 | |
Common units outstanding | 29,700,000 | 18,700,000 | |
Common units issued | 29,700,000 | 18,700,000 | |
Variable Interest Entity [Member] | |||
Restricted cash | $ 13 | $ 55 | |
Property, plant and equipment, net | $ 707 | $ 722 | |
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 46 | $ 52 | [1],[2],[3] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 90 | 67 | [1],[3] | |
Amortization of deferred financing costs | 4 | 5 | [3] | |
Deferred income taxes | 9 | 13 | [3] | |
Benefits associated with differential membership interests - net | (10) | 0 | [1],[3] | |
Other - net | 0 | 4 | [3] | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (6) | (17) | [3] | |
Prepaid expenses and other current assets | (4) | 0 | [3] | |
Other non-current assets | (2) | (1) | [3] | |
Accounts payable and accrued expenses | (2) | (1) | [3] | |
Due to related parties | (3) | 2 | [3] | |
Other current liabilities | (2) | 9 | [3] | |
Other non-current liabilities | (3) | 1 | [3] | |
Net cash provided by operating activities | 117 | 134 | [3] | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Capital expenditures | (85) | (183) | [3] | |
Proceeds from convertible investment tax credits | 0 | 306 | [3] | |
Acquisitions of projects | (716) | (288) | [3] | |
Changes in restricted cash | 66 | (4) | [3] | |
Payments from (to) related parties under CSCS agreement - net | 182 | (146) | [3] | |
Net cash used in investing activities | (553) | (315) | [3] | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Partners/Members' contributions | 40 | 448 | [3] | |
Partners/Members' distributions | (65) | (253) | [3] | |
Payments to differential membership investors | (2) | 0 | [3] | |
Proceeds from short-term debt | 325 | 0 | [3] | |
Repayments of short-term debt | (313) | 0 | [3] | |
Change in amounts due to related party | (20) | 0 | [3] | |
Proceeds from issuance of NEP OpCo common units to noncontrolling interest | 702 | 0 | [3] | |
Issuances of long-term debt | 234 | 15 | [3] | |
Deferred financing costs | (4) | (1) | [3] | |
Retirements of long-term debt | (190) | (375) | [3] | |
Proceeds from differential membership interest | 5 | 0 | [3] | |
Proceeds from issuance of common units, net | 319 | 438 | [3] | |
Net cash provided by financing activities | 1,031 | 272 | [3] | |
Effect of exchange rate changes on cash | (2) | (2) | [3] | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 593 | 89 | [3] | |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 103 | [4] | 32 | [3] |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 696 | 121 | [3] | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest, net of amounts capitalized | 85 | 59 | [3] | |
Cash paid for income taxes | 0 | 1 | ||
Partners/Members' noncash distributions | 5 | 479 | [3] | |
Membersā noncash contributions for construction costs and other expenditures | 67 | 559 | [3] | |
Membersā net distributions for CITC payments | 0 | 150 | ||
Members' noncash contributions of other investments | 1 | 20 | [3] | |
Change in accrued CITC that results in a reduction to property, plant and equipment, net | 13 | 0 | [3] | |
New asset retirement obligation additions | 0 | 1 | [3] | |
Change in accrued but not paid for capital expenditures | 1 | 110 | [3] | |
Noncash reclassification of distributions to due from related parties | 0 | 38 | [3] | |
Noncash member contribution upon transition from predecessor method | $ 3 | $ 60 | [3] | |
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | |||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | |||
[3] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | |||
[4] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting and Reporting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Restricted Cash - At September 30, 2015 and December 31, 2014 , approximately $13 million and $55 million , respectively, of current restricted cash on NEP's condensed consolidated balance sheets represents cash to fund certain construction costs. In addition, at December 31, 2014 approximately $22 million of current restricted cash, also included in due to related parties on NEP's condensed consolidated balance sheets, represents CITC proceeds due to NEECH. The remaining current restricted cash and approximately $3 million o f other non-current assets on NEPās condensed consolidated balance sheets as of both September 30, 2015 and December 31, 2014 , are held by subsidiaries to pay for certain capital or operating expenditures as well as to fund required equity contributions pursuant to restrictions contained in the debt agreements. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds. Revenue Recognition - In July 2015, the Financial Accounting Standards Board (FASB) approved the deferral of the effective date of the new accounting standard related to the recognition of revenue from contracts with customers and required disclosures. The standard is now effective for NEP beginning January 1, 2018. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its financial statements. Noncontrolling Interests - After the completion of NEP's IPO, NEP owned a controlling, non-economic general partnership interest and a 20.1% limited partnership interest in NEP OpCo and NEE Equity owned a noncontrolling 79.9% limited partnership interest in NEP OpCo. NEP's limited partnership interest in NEP OpCo increased to 22.6% as of September 30, 2015 . See Equity below. The following table reflects the changes in NEP's noncontrolling interest balance: Nine Months Ended September 30, 2015 2014 (a) (millions) Noncontrolling interest at December 31, 2014 (b) and December 31, 2013 $ 732 $ ā Payments to NEE for acquisitions of projects (716 ) (288 ) NEE purchase of NEP OpCo's common units 702 ā Cash distributions (47 ) ā Noncash distributions (7 ) ā Member contributions, net (c) 103 1,372 Comprehensive income attributable to noncontrolling interest, including pre-acquisition net income of the 2015 acquisitions 21 14 Noncash member contribution upon transition from predecessor method 3 (60 ) Noncontrolling interest at September 30 $ 791 $ 1,038 ____________________ (a) Prior-period financial information has been retrospectively adjusted as discussed in Note 2. (b) As reported in the 2014 Consolidated Financial Statements. (c) For 2015, primarily construction-related contributions between January 1, 2015 and the respective acquisition dates. Equity - In May 2015, NEP completed the sale of 2,594,948 common units representing limited partnership interests in NEP in a private placement for an aggregate purchase price of approximately $109 million , or $41.87 per common unit. NEP used the proceeds, net of approximately $3 million in fees and expenses relating to the offering, from this private placement to fund a portion of the purchase price payable in the May 2015 project acquisitions discussed in Note 2. The issuance of these additional common units resulted in an increase of NEP's limited partnership interest in NEP OpCo to 22.2% . In September 2015, NEP completed the sale of 8,375,907 common units representing limited partnership interests in NEP in a public offering for an aggregate purchase price of approximately $218 million , or $26.00 per common unit. NEP used the proceeds, net of approximately $5 million in fees and expenses relating to the offering, to repay amounts owed under the $313 million term loan. Also in September 2015, a subsidiary of NEE purchased 27,000,000 of NEP OpCo's common units for $702 million . Approximately $110 million of the proceeds were used to repay amounts owed under the $313 million term loan and the balance of the proceeds was used to finance a portion of the acquisition of NET Midstream discussed in Note 2 and for general partnership purposes. After giving effect to the issuance of the NEP common units and the sale of NEP OpCo common units to NEE, NEP's limited partnership interest in NEP OpCo is 22.6% as of September 30, 2015. On October 28, 2015, NEP announced a distribution of $0.27 per common unit payable on November 13, 2015 to its unitholders of record on November 5, 2015. Variable Interest Entities (VIEs) - At September 30, 2015 , NEP has two VIEs which it consolidates. Certain investors that hold no equity interest in these VIEs hold differential membership interests, which give them the right to receive a portion of the economic attributes of these wind electric generating facilities, including certain tax attributes. The assets and liabilities of the VIEs, consisting primarily of property, plant and equipment and deferral related to differential membership interests, totaled approximately $758 million and $464 million at September 30, 2015 , respectively, and approximately $812 million and $555 million at December 31, 2014 , respectively. At September 30, 2015 and December 31, 2014 , the equity investment described in Note 2 totaled approximately $18 million and $19 million , respectively, and is reflected as investments in equity method investees - VIEs on the condensed consolidated balance sheets and is attributable to the noncontrolling interest. All equity in earnings of the equity method investees is allocated to net income attributable to noncontrolling interest. NEP is not the primary beneficiary and therefore does not consolidate these entities because it does not control any of the ongoing activities of these entities, was not involved in the initial design of these entities and does not have a controlling interest in these entities. Amendments to the Consolidation Analysis - In February 2015, the FASB issued a new accounting standard that will modify current consolidation guidance. The standard makes changes to both the variable interest entity model and the voting interest entity model, including modifying the evaluation of whether limited partnerships or similar legal entities are VIEs or voting interest entities and amending the guidance for assessing how relationships of related parties affect the consolidation analysis of VIEs. The standard is effective for NEP beginning January 1, 2016. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its consolidated financial statements. Presentation of Debt Issuance Costs - In April 2015, the FASB issued a new accounting standard which changes the presentation of debt issuance costs in financial statements. The amendments in this standard require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this standard. The standard is effective for NEP beginning January 1, 2016. NEP is currently evaluating the effect the adoption of this standard will have on its consolidated financial statements. |
Acquisitions Acquisitions
Acquisitions Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS On April 28, 2015, a subsidiary of NEP made an equity investment in three NEER solar projects under construction in California (the equity investment). Once completed, the solar projects are expected to have a total generating capacity of 277 MW, of which approximately 95 MW have been placed in service as of September 30, 2015. Through a series of transactions, a subsidiary of NEP issued 1,000,000 NEP OpCo Class B Units, Series 1 and 1,000,000 NEP OpCo Class B Units, Series 2, to NEER for approximately 50% of the ownership interests in the three solar projects. NEER, as holder of the Class B Units, will retain 100% of the economic rights in the projects to which the respective Class B Units relate, including the right to all distributions paid by the project subsidiaries that own the projects to NEP OpCo. NEER has agreed to indemnify NEP against all risks relating to NEPās ownership of the projects and construction of the projects until NEER offers to sell economic interests to NEP and NEP accepts such offer, if NEP chooses to do so. NEER has also agreed to continue to manage the construction and operation of the projects at its own cost, and to contribute to the projects any capital necessary for the construction and operation of the projects, until NEER offers to sell economic interests to NEP and NEP accepts such offer. On May 12, 2015, a subsidiary of NEP completed the acquisition from NEER of four entities with direct or indirect ownership interests in wind energy generating facilities with total generating capacity of approximately 664 MW for total consideration of approximately $424 million in cash consideration, excluding certain adjustments, and the assumption of approximately $269 million in existing debt and tax equity financing. The equity investment on April 28, 2015 and the acquisition of wind projects on May 12, 2015 are collectively referred to as the second quarter 2015 acquisitions. The second quarter 2015 acquisitions and the acquisitions of Palo Duro and Shafter in the first quarter of 2015 are collectively referred to as the 2015 acquisitions. The 2015 acquisitions were transfers of assets between entities under common control, which required them to be accounted for as if the transfers occurred since the inception of common control, with prior periods retrospectively adjusted to furnish comparative information. Accordingly, the accompanying condensed consolidated financial statements have been retrospectively adjusted to include the historical results and financial position of the 2015 acquisitions prior to their respective acquisition dates. As part of its growth strategy, NEP entered into an agreement, effective July 31, 2015, to acquire 100% of the membership interests in NET Midstream, a developer, owner and operator of a portfolio of seven long-term contracted natural gas pipeline assets located in Texas. On October 1, 2015, a subsidiary of NEP completed the NET Midstream acquisition. The aggregate purchase price of approximately $2 billion included approximately $934 million in cash consideration and the assumption of approximately $654 million in existing debt of NET Midstream and its subsidiaries at closing and excluded post-closing working capital adjustments. The purchase price is subject to (i) a $200 million holdback payable, in whole or in part, upon satisfaction of financial performance and capital expenditure thresholds relating to planned expansion projects and (ii) a $200 million holdback retained for an 18-month period to satisfy any indemnification obligations of the sellers. The $200 million indemnity holdback may be reduced by up to $10 million depending on certain post-closing employee retention thresholds. If successful, NEP may spend up to an additional $100 million of capital expenditures for the planned expansion projects, bringing the total transaction size for the NET Midstream acquisition to approximately $2.1 billion . NEP is still in the process of evaluating the business combination accounting considerations, including the initial purchase price allocation. Acquisition-related costs incurred during the three and nine months ended September 30, 2015 totaled approximately $5 million . Also on October 1, 2015, a subsidiary of NEP acquired a 149 MW wind generating facility located in Ontario, Canada from NEER. In exchange for the shares in the company that indirectly owns the facility, the purchaser paid a total purchase price of approximately $210 million in cash consideration, plus $19 million in working capital (subject to post-closing working capital and other adjustments), and assumed approximately $294 million in existing debt. As part of this acquisition and included in the cash consideration, a subsidiary of NEP acquired an approximately CAD 43 million receivable from a subsidiary of NEER relating to operational performance issues at this facility. The receivable is intended to compensate NEP for the operational performance issues and is supported in full by corrective actions or compensation expected from an equipment vendor under an undertaking the vendor has with NEER. The receivable can be settled, in part or in whole, to the extent the operational performance issues are improved or resolved by the vendor by the end of 2016. This receivable bears interest at 7.1% per annum, is payable by NEER in equal quarterly installments and matures in September 2035. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For periods ending prior to July 1, 2014, income taxes are calculated using the separate return method for each of the project entities acquired in connection with the IPO that are structured as corporations or as limited liability companies. For the 2015 acquisitions, income taxes are calculated using the separate return method for periods prior to their respective acquisition dates. Income taxes are not included for entities that are structured as flow through entities (partnerships) electing to be taxed as partnerships. For periods after the date a project is acquired by NEP (NEP acquisition date), taxes are calculated for NEP as a single taxpaying entity for U.S. federal and state income tax purposes (based on its election to be taxed as a corporation). Because NEP OpCo is a limited partnership electing to be taxed as a partnership for U.S. federal and state income tax purposes, NEP has only included its proportionate share of U.S. income taxes. The U.S. income taxes on the remaining noncontrolling interest in NEP OpCo earnings were allocated to NEE Equity and are not included in NEP's condensed consolidated financial statements. The Canadian subsidiaries are all Canadian taxpayers subject to Canadian income tax, and therefore all Canadian taxes are included in NEP's condensed consolidated financial statements. NEE Equity's share of Canadian taxes is included in net income attributable to noncontrolling interest in NEP's condensed consolidated financial statements. The effective tax rate for the three months ended September 30, 2015 and 2014 was approximately 18% and 4% , respectively. The effective tax rate for the nine months ended September 30, 2015 and 2014 was approximately 19% and 21% , respectively. For periods ending prior to July 1, 2014, the effective tax rate is affected by recurring items, such as the relative amount of income earned in jurisdictions, the 50% tax basis reduction due to CITCs that are recognized when assets are placed into service, and valuation allowances on deferred tax assets. Additionally, in periods ending after July 1, 2014, the effective tax rate is affected by taxes attributable to the noncontrolling interest, and the taxation of Canadian income in both Canada and the U.S. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (Level 1) or pricing inputs that are observable (Level 2) whenever that information is available and using unobservable inputs (Level 3) to estimate fair value only when relevant observable inputs are not available. NEP uses several different valuation techniques to measure the fair value of assets and liabilities relying primarily on observable market information for identical or comparable assets and liabilities for those assets and liabilities that are measured at fair value on a recurring basis. Certain financial instruments may be valued using multiple inputs including discount rates, counterparty credit ratings and credit enhancements. NEPās assessment of the significance of any particular input to the fair value measurement requires judgment and may affect the fair value measurement of its assets and liabilities and the placement of those assets and liabilities within the fair value hierarchy levels. Non-performance risk, including the consideration of a credit valuation adjustment, is also considered in the determination of fair value for all assets and liabilities measured at fair value. All transfers between fair value hierarchy levels occur at the beginning of the period in which the transfer occurred. Cash Equivalents - Cash equivalents, which are included in cash and cash equivalents, restricted cash and other non-current assets on the condensed consolidated balance sheets, consist of short-term, highly liquid investments with original maturities of three months or less. NEP primarily holds these investments in money market funds. NEP estimates the fair value of these funds using a market approach based on current observable market prices. Interest Rate Swaps and Foreign Currency Contracts - NEP estimates the fair value of its derivatives using an income approach, or a discounted cash flows valuation technique, based on the net amount of estimated future cash inflows and outflows related to the agreements. The primary inputs used in these fair value measurements include the contractual terms of the derivative agreements, foreign currency exchange rates, current interest rates and credit spreads. The significant inputs for the resulting fair value measurement are market-observable inputs and the measurements are reported as Level 2 in the fair value hierarchy. At September 30, 2015 , the fair value of NEP's foreign currency contracts is less than $1 million . NEPās financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows: September 30, 2015 December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 56 $ ā $ 56 $ 104 $ ā $ 104 Interest rate swaps ā ā ā ā 2 2 Total assets $ 56 $ ā $ 56 $ 104 $ 2 $ 106 Liabilities: Interest rate swaps $ ā $ 16 $ 16 $ ā $ 11 $ 11 Total liabilities $ ā $ 16 $ 16 $ ā $ 11 $ 11 Fair Value of Financial Instruments Recorded at the Carrying Amount - The carrying amounts of accounts receivable approximate their fair values. The carrying amounts and estimated fair values of other financial instruments, excluding assets and liabilities which are recorded at fair value and disclosed above, are as follows: September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (millions) Notes receivable (a) $ 20 $ 20 $ 20 $ 20 Long-term debt, including current maturities (b) $ 1,910 $ 2,001 $ 1,933 $ 2,008 ____________________ (a) Fair value approximates carrying amount as they bear interest primarily at variable rates and have long-term maturities (Level 2) and are included in other non-current assets on the condensed consolidated balance sheets. (b) Fair value is estimated based on the borrowing rates as of each date for similar issues of debt with similar remaining maturities (Level 2). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY NEP recognizes all derivative instruments, when required to be marked to market, on the balance sheet as either assets or liabilities and measures them at fair value each reporting period. In connection with certain debt financings, NEP entered into interest rate swap agreements to manage interest rate cash flow risk. Under the interest rate swap agreements, NEP pays a fixed rate of interest and receives a floating rate of interest over the term of the agreements without the exchange of the underlying notional amounts. These agreements allow NEP to offset the variability of its floating-rate loan interest cash flows with the variable interest cash flows received from the interest rate swap agreements. The commencement and termination dates of the interest rate swap agreements and the related hedging relationship coincide with the corresponding dates of the underlying variable-rate debt instruments, with maturity dates through 2032. As of September 30, 2015 and December 31, 2014 , the combined notional amounts of the swap agreements were approximately $374 million and $361 million , respectively. In order to apply hedge accounting, the transactions must be designated as hedges and must be highly effective in offsetting the hedged risk. For interest rate swaps, generally NEP assesses a hedging instrumentās effectiveness by using non-statistical methods including dollar value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. Hedge effectiveness is tested at the inception of the hedge and on at least a quarterly basis throughout the hedgeās life. The effective portion of changes in the fair value of derivatives accounted for as cash flow hedges are deferred and recorded as a component of accumulated other comprehensive income (loss) (AOCI). The amounts deferred in AOCI are recognized in earnings in the period(s) during which the transaction being hedged affects earnings. Any amounts excluded from the assessment of hedge effectiveness, as well as the ineffective portion of the gain or loss, is reported in current earnings. Approximately $6 million of net losses included in AOCI at September 30, 2015 , is expected to be reclassified into interest expense within the next 12 months as interest payments are made. Such amount assumes no change in interest rates. Cash flows from these interest rate swap contracts are reported in cash flows from operating activities in NEP's condensed consolidated statements of cash flows. The fair values of NEP's derivative instruments designated as cash flow hedging instruments are included on NEP's condensed consolidated balance sheets as follows: September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities (millions) Interest rate swaps: Other non-current assets $ ā $ 1 $ 5 $ ā Other current liabilities $ ā $ 6 $ 3 $ 3 Other non-current liabilities $ ā $ 11 $ ā $ 8 Gains (losses) related to NEP's cash flow hedges are recorded in NEP's condensed consolidated financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (millions) Interest rate swaps: Losses recognized in other comprehensive income $ (12 ) $ (3 ) $ (10 ) $ (16 ) Losses reclassified from AOCI to net income (a) $ 1 $ 1 $ 5 $ 3 ____________________ (a) Included in interest expense. During the nine months ended September 30, 2015, NEP entered into certain foreign currency exchange contracts to economically hedge its cash flows from foreign currency rate fluctuations. As of September 30, 2015 , the notional amount of the foreign currency contracts was approximately $41 million . During each of the three and nine months ended September 30, 2015 , NEP recorded approximately $1 million of gains related to the foreign currency contracts in other - net in the condensed consolidated statements of income. |
Debt Debt
Debt Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Significant short-term and long-term debt issuances and borrowings by subsidiaries of NEP during the nine months ended September 30, 2015 were as follows: Date Issued Debt Issuances/Borrowings Interest Rate Principal Amount Maturity Date (millions) January - February 2015 Senior secured revolving credit facility Variable (a) $ 122 (b) 2019 May 2015 Short-term term loan Variable (a) $ 313 (c) 2016 June 2015 Short-term cash grant bridge loan Variable (a) $ 12 2016 June 2015 Limited-recourse senior secured term loan 4.52% $ 31 2033 July 2015 Limited-recourse term loan Variable (d) $ 81 2026 āāāāāāāāāāāā (a) Variable rate is based on an underlying index plus a margin. (b) At September 30, 2015 , $29 million is outstanding under the revolving credit facility. (c) In connection with the sale of NEP common units and the sale of NEP OpCo common units in September 2015, this loan was repaid. See Note 1 - Equity. (d) Approximately $54 million of the term loan bears interest based on an underlying index plus a margin. The remaining amount of the term loan bears interest at a fixed rate of 4.38% . The long-term debt agreements listed above are secured by liens on certain assets and contain provisions which, under certain conditions, could restrict the payment of distributions or related party fee payments. On October 1, 2015, a subsidiary of NEP (the borrower) borrowed $600 million under several variable rate senior secured term loan agreements (term loans) that mature in October 2018. Interest is based on the London Interbank Offered Rate plus a margin, with payment being due at the end of interest rate periods which can range from one to six months, as selected by the borrower. The term loans are secured by liens on certain of the assets of NEP OpCo and certain other assets of, and the direct ownership interest in, one of NEP OpCo's direct subsidiaries. All borrowings under the term loans are guaranteed by NEP and NEP OpCo. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Three months ended September 30, 2015 Balances, June 30, 2015 $ ā $ (49 ) $ (49 ) Other comprehensive loss before reclassification (11 ) (8 ) (19 ) Amounts reclassified from AOCI to interest expense 1 ā 1 Net other comprehensive loss (10 ) (8 ) (18 ) Balances, September 30, 2015 (10 ) (57 ) (67 ) AOCI attributable to noncontrolling interest (9 ) (51 ) (60 ) AOCI attributable to NEP, September 30, 2015 $ (1 ) $ (6 ) $ (7 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Nine months ended September 30, 2015 Balances, December 31, 2014 $ (5 ) $ (39 ) $ (44 ) Other comprehensive loss before reclassification (9 ) (18 ) (27 ) Amounts reclassified from AOCI to interest expense 4 ā 4 Net other comprehensive loss (5 ) (18 ) (23 ) Balances, September 30, 2015 (10 ) (57 ) (67 ) AOCI attributable to noncontrolling interest (9 ) (51 ) (60 ) AOCI attributable to NEP, September 30, 2015 $ (1 ) $ (6 ) $ (7 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Three months ended September 30, 2014 Balances, June 30, 2014 $ (2 ) $ (28 ) $ (30 ) Other comprehensive loss before reclassification (2 ) (7 ) (9 ) Amounts reclassified from AOCI to interest expense 1 ā 1 Net other comprehensive loss (1 ) (7 ) (8 ) Balance sheet adjustment related to transitioning from separate return method (see Note 3) 6 ā 6 Balances, September 30, 2014 3 (35 ) (32 ) AOCI attributable to noncontrolling interest 3 (34 ) (31 ) AOCI attributable to NEP, September 30, 2014 $ ā $ (1 ) $ (1 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Nine months ended September 30, 2014 Balances, December 31, 2013 $ 9 $ (25 ) $ (16 ) Other comprehensive loss before reclassification (15 ) (10 ) (25 ) Amounts reclassified from AOCI to interest expense 3 ā 3 Net other comprehensive loss (12 ) (10 ) (22 ) Balance sheet adjustment related to transitioning from separate return method (see Note 3) 6 ā 6 Balances, September 30, 2014 3 (35 ) (32 ) AOCI attributable to noncontrolling interest 3 (34 ) (31 ) AOCI attributable to NEP, September 30, 2014 $ ā $ (1 ) $ (1 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS At September 30, 2015, each project has entered into O&M agreements and ASAs with subsidiaries of NEER whereby the projects pay a certain annual fee plus actual costs incurred in connection with certain O&M and administrative services performed under these agreements. NEPās O&M expenses for each of the three months ended September 30, 2015 and 2014 include approximately $1 million , and for the nine months ended September 30, 2015 and 2014 , $4 million and $3 million , respectively, related to such services. Additionally, Northern Colorado pays an affiliate for transmission services. NEPās transmission expense for the three and nine months ended September 30, 2015 and 2014 represents the fees paid for these services. At September 30, 2015 and December 31, 2014 , the net payables for these services, as well as for payroll and other payments made on behalf of these projects, were approximately $7 million and $13 million , respectively, and are included in due to related parties on NEP's condensed consolidated balance sheets. Management Services Agreement - Effective July 1, 2014, subsidiaries of NEP entered into a MSA with indirect wholly owned subsidiaries of NEE, under which operational, management and administrative services are provided to NEP, including managing NEPās day to day affairs and providing individuals to act as NEP GPās executive officers and directors, in addition to those services that are provided under the existing O&M agreements and ASAs described above between NEER subsidiaries and NEP subsidiaries. NEP OpCo will pay NEE an annual management fee equal to the greater of 1% of the sum of NEP OpCoās net income plus interest expense, income tax expense and depreciation and amortization expense less certain non-cash, non-recurring items for the most recently ended fiscal year and $4 million (as adjusted for inflation beginning in 2016), which will be paid in quarterly installments of $1 million with an additional payment each January to the extent 1% of the sum of NEP OpCoās net income plus interest expense, income tax expense and depreciation and amortization expense less certain non-cash, non-recurring items for the preceding fiscal year exceeds $4 million (as adjusted for inflation beginning in 2016). NEP OpCo will also make certain payments to NEE based on the achievement by NEP OpCo of certain target quarterly distribution levels to its unitholders (IDR Fees). NEPās O&M expenses for the three and nine months ended September 30, 2015 include approximately $1 million and $3 million , respectively, and $1 million for each of the three and nine months ended September 30, 2014 , related to payments made under the MSA. Cash Sweep and Credit Support Agreement - Effective July 1, 2014, NEP OpCo entered into a CSCS agreement with NEER, under which NEER and certain of its subsidiaries may provide credit support in the form of letters of credit and guarantees to satisfy NEPās subsidiariesā contractual obligations. NEP OpCo will pay NEER an annual credit support fee based on the level and cost of the credit support provided, payable in quarterly installments. NEPās expense for the three and nine months ended September 30, 2015 includes approximately $1 million and $2 million , respectively, and for each of the three and nine months ended September 30, 2014 less than $1 million , related to payments made under the CSCS agreement. NEER and certain of its subsidiaries may withdraw funds received by NEP OpCo under the CSCS agreement, or its subsidiaries in connection with certain of the long-term debt agreements (Project Sweeps), and hold those funds in accounts belonging to NEER or its subsidiaries to the extent the funds are not required to pay project costs or otherwise required to be maintained by NEP's subsidiaries. NEER and its subsidiaries may keep the funds until the financing agreements permit distributions to be made, or, in the case of NEP OpCo, until such funds are required to make distributions or to pay expenses or other operating costs or NEP OpCo otherwise demands the return of such funds. If NEER fails to return withdrawn funds when required by NEP's subsidiariesā financing agreements, the lenders will be entitled to draw on credit support provided by NEER in the amount of such withdrawn funds. If NEER or one of its affiliates realizes any earnings on the withdrawn funds prior to the return of such funds, it will be permitted to retain those earnings. The cash sweep amount held in accounts belonging to NEER or its subsidiaries as of September 30, 2015 and December 31, 2014 were approximately $34 million and $218 million, respectively, and are included in due from related parties on NEPās condensed consolidated balance sheets. Guarantees and Letters of Credit Entered into by Related Parties - Certain PPAs include requirements of the project entities to meet certain performance obligations. NEECH has provided letters of credit or guarantees for certain of these performance obligations and payment of any obligations from the transactions contemplated by the PPAs . In addition, certain of the financing agreements require cash and cash equivalents to be reserved for various purposes . In accordance with the terms of these financing agreements, guarantees from NEECH have been substituted in place of these cash and cash equivalents reserve requirements. In addition, certain interconnection agreements and site certificates require letters of credit or a bond to secure certain payment or restoration obligations related to those agreements. NEECH also guarantees the Project Sweep amounts held in accounts belonging to NEER as described above. As of September 30, 2015 , NEECH guaranteed or provided letters of credit or bonds totaling approximately $532 million related to these obligations. Agreements related to the sale of differential membership interests require NEER to guarantee payment of construction-related expenses that were not yet paid before the sale of the differential membership interests in VIEs as well as payments due by the VIEs and indemnifications to the VIEs' respective investors. As of September 30, 2015 , NEER guaranteed a total of approximately $53 million related to these obligations. Due to Related Party - As of September 30, 2015 and December 31, 2014 , approximately $16 million reported in non-current due to related party on NEP's condensed consolidated balance sheets represents an amount due from Palo Duro to NEER to refund NEER for certain transmission costs paid on behalf of Palo Duro. Amounts will be paid to NEER as Palo Duro receives payments from a third party for a related note receivable in the amount of approximately $16 million recorded in other non-current assets on NEPās condensed consolidated balance sheets. At September 30, 2015 and December 31, 2014 , the remaining balances reported in non-current due to related party on the accompanying condensed consolidated balance sheets represent amounts owed to NEER or NEER subsidiaries for reimbursement of certain costs as well as, at December 31, 2014, for fees related to O&M agreements and ASAs discussed above. Development, Engineering and Construction Commitments - During the nine months ended September 30, 2015 , NEER purchased and contributed approximately $24 million under several engineering, procurement and construction contracts related to the procurement of materials and services for certain NEP assets and for which costs were capitalized in construction work in progress. There were no such purchases and contributions in the three months ended September 30, 2015 or the three and nine months ended September 30, 2014 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Land Use Commitments - The project owners are parties to various agreements that provide for payments to landowners for the right to use the land upon which the projects are located. These leases and easements can typically be renewed by the project owners for various periods. The annual fees range from minimum rent payments varying by lease to maximum rent payments of a certain percentage of gross revenues, varying by lease. Total lease expense was approximately $4 million for each of the three month periods ended September 30, 2015 and 2014 , and $12 million and $10 million for the nine months ended September 30, 2015 and 2014 , respectively, and is included in operations and maintenance expenses in NEP's condensed consolidated statements of income. Genesis' land lease includes a right-of-way lease/grant that provides for payments to the BLM for the right to use the public lands upon which the project is located. The lease may be renewed at expiration at Genesis' option and will be subject to the regulations existing at the time of renewal. In connection with the terms of this lease, Genesis obtained a surety bond from a non-affiliated party in favor of the BLM for approximately $23 million . The surety bond remains in effect until the BLM is satisfied that there is no outstanding liability on the bond or satisfactory replacement bond coverage is furnished. The related minimum and varying lease payments are based on fair value. Certain of these payments are considered contingent rent and, therefore, expense is recognized as incurred. The total minimum rental commitments at September 30, 2015 under these land use agreements are as follows: Land Use (millions) Remainder of 2015 $ 2 2016 6 2017 6 2018 6 2019 6 2020 7 Thereafter 176 Total minimum land use payments $ 209 Letter of Credit Facility - Genesis entered into a letter of credit (LOC) facility, under which the LOC lender may issue standby letters of credit not to exceed approximately $83 million , with a maturity date of August 15, 2017. The purpose and amounts of letters of credit outstanding as of September 30, 2015 are as follows: LOC Facility Purpose Amount Outstanding Dates (millions) PPA security $ 25 September 2011 - Maturity Large generator interconnection agreement obligations 8 September 2011 - Maturity O&M reserve 10 December 2013 - Maturity Debt service reserve 35 August 2014 - Maturity Total $ 78 Canadian FIT Contracts - At September 30, 2015, the FIT contracts relating to Summerhaven, Conestogo and Bluewater require suppliers to source a minimum percentage of their equipment and services from Ontario resident suppliers to meet the minimum required domestic content level (MRDCL). The MRDCL for Summerhaven and Conestogo is 25% and the MRDCL for Bluewater is 50%. Following their respective CODs, Summerhaven, Conestogo and Bluewater submitted reports to the Independent Electricity System Operator (IESO) summarizing how they achieved the MRDCL for their respective projects (domestic content reports) and the IESO issued letters to Summerhaven, Conestogo and Bluewater acknowledging the completeness of their domestic content reports. The IESO has the right to audit the Summerhaven, Conestogo and Bluewater projects for a period of up to 7 years post-COD to confirm that they complied with the domestic content requirements under their respective FIT contracts and achieved their respective MRDCLs. The failure by any of these projects to achieve its MRDCL could result in a default by such project under its FIT contract, which default may not be possible to cure and could result in a termination of its FIT contract, without compensation, by the IESO. A termination of the FIT contract for Summerhaven, Conestogo or Bluewater could negatively affect revenues generated by such project and have a material adverse effect on NEP's business, financial condition, results of operations and ability to make cash distributions to its unitholders. |
Summary of Significant Accoun17
Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash - At September 30, 2015 and December 31, 2014 , approximately $13 million and $55 million , respectively, of current restricted cash on NEP's condensed consolidated balance sheets represents cash to fund certain construction costs. In addition, at December 31, 2014 approximately $22 million of current restricted cash, also included in due to related parties on NEP's condensed consolidated balance sheets, represents CITC proceeds due to NEECH. The remaining current restricted cash and approximately $3 million o f other non-current assets on NEPās condensed consolidated balance sheets as of both September 30, 2015 and December 31, 2014 , are held by subsidiaries to pay for certain capital or operating expenditures as well as to fund required equity contributions pursuant to restrictions contained in the debt agreements. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds |
Revenue Recognition | Revenue Recognition - In July 2015, the Financial Accounting Standards Board (FASB) approved the deferral of the effective date of the new accounting standard related to the recognition of revenue from contracts with customers and required disclosures. The standard is now effective for NEP beginning January 1, 2018. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its financial statements. |
Noncontrolling Interests | Noncontrolling Interests - After the completion of NEP's IPO, NEP owned a controlling, non-economic general partnership interest and a 20.1% limited partnership interest in NEP OpCo and NEE Equity owned a noncontrolling 79.9% limited partnership interest in NEP OpCo. NEP's limited partnership interest in NEP OpCo increased to 22.6% as of September 30, 2015 . See Equity below. The following table reflects the changes in NEP's noncontrolling interest balance: Nine Months Ended September 30, 2015 2014 (a) (millions) Noncontrolling interest at December 31, 2014 (b) and December 31, 2013 $ 732 $ ā Payments to NEE for acquisitions of projects (716 ) (288 ) NEE purchase of NEP OpCo's common units 702 ā Cash distributions (47 ) ā Noncash distributions (7 ) ā Member contributions, net (c) 103 1,372 Comprehensive income attributable to noncontrolling interest, including pre-acquisition net income of the 2015 acquisitions 21 14 Noncash member contribution upon transition from predecessor method 3 (60 ) Noncontrolling interest at September 30 $ 791 $ 1,038 ____________________ (a) Prior-period financial information has been retrospectively adjusted as discussed in Note 2. (b) As reported in the 2014 Consolidated Financial Statements. (c) For 2015, primarily construction-related contributions between January 1, 2015 and the respective acquisition dates. |
Equity | Equity - In May 2015, NEP completed the sale of 2,594,948 common units representing limited partnership interests in NEP in a private placement for an aggregate purchase price of approximately $109 million , or $41.87 per common unit. NEP used the proceeds, net of approximately $3 million in fees and expenses relating to the offering, from this private placement to fund a portion of the purchase price payable in the May 2015 project acquisitions discussed in Note 2. The issuance of these additional common units resulted in an increase of NEP's limited partnership interest in NEP OpCo to 22.2% . In September 2015, NEP completed the sale of 8,375,907 common units representing limited partnership interests in NEP in a public offering for an aggregate purchase price of approximately $218 million , or $26.00 per common unit. NEP used the proceeds, net of approximately $5 million in fees and expenses relating to the offering, to repay amounts owed under the $313 million term loan. Also in September 2015, a subsidiary of NEE purchased 27,000,000 of NEP OpCo's common units for $702 million . Approximately $110 million of the proceeds were used to repay amounts owed under the $313 million term loan and the balance of the proceeds was used to finance a portion of the acquisition of NET Midstream discussed in Note 2 and for general partnership purposes. After giving effect to the issuance of the NEP common units and the sale of NEP OpCo common units to NEE, NEP's limited partnership interest in NEP OpCo is 22.6% as of September 30, 2015. On October 28, 2015, NEP announced a distribution of $0.27 per common unit payable on November 13, 2015 to its unitholders of record on November 5, 2015. |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) - At September 30, 2015 , NEP has two VIEs which it consolidates. Certain investors that hold no equity interest in these VIEs hold differential membership interests, which give them the right to receive a portion of the economic attributes of these wind electric generating facilities, including certain tax attributes. The assets and liabilities of the VIEs, consisting primarily of property, plant and equipment and deferral related to differential membership interests, totaled approximately $758 million and $464 million at September 30, 2015 , respectively, and approximately $812 million and $555 million at December 31, 2014 , respectively. At September 30, 2015 and December 31, 2014 , the equity investment described in Note 2 totaled approximately $18 million and $19 million , respectively, and is reflected as investments in equity method investees - VIEs on the condensed consolidated balance sheets and is attributable to the noncontrolling interest. All equity in earnings of the equity method investees is allocated to net income attributable to noncontrolling interest. NEP is not the primary beneficiary and therefore does not consolidate these entities because it does not control any of the ongoing activities of these entities, was not involved in the initial design of these entities and does not have a controlling interest in these entities. |
Hedge Effectiveness | In order to apply hedge accounting, the transactions must be designated as hedges and must be highly effective in offsetting the hedged risk. For interest rate swaps, generally NEP assesses a hedging instrumentās effectiveness by using non-statistical methods including dollar value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. Hedge effectiveness is tested at the inception of the hedge and on at least a quarterly basis throughout the hedgeās life. The effective portion of changes in the fair value of derivatives accounted for as cash flow hedges are deferred and recorded as a component of accumulated other comprehensive income (loss) (AOCI). The amounts deferred in AOCI are recognized in earnings in the period(s) during which the transaction being hedged affects earnings. Any amounts excluded from the assessment of hedge effectiveness, as well as the ineffective portion of the gain or loss, is reported in current earnings. |
New Accounting Pronouncements | Amendments to the Consolidation Analysis - In February 2015, the FASB issued a new accounting standard that will modify current consolidation guidance. The standard makes changes to both the variable interest entity model and the voting interest entity model, including modifying the evaluation of whether limited partnerships or similar legal entities are VIEs or voting interest entities and amending the guidance for assessing how relationships of related parties affect the consolidation analysis of VIEs. The standard is effective for NEP beginning January 1, 2016. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its consolidated financial statements. Presentation of Debt Issuance Costs - In April 2015, the FASB issued a new accounting standard which changes the presentation of debt issuance costs in financial statements. The amendments in this standard require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this standard. The standard is effective for NEP beginning January 1, 2016. NEP is currently evaluating the effect the adoption of this standard will have on its consolidated financial statements. |
Summary of Significant Accoun18
Summary of Significant Accounting and Reporting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Changes in noncontrolling interest balance | The following table reflects the changes in NEP's noncontrolling interest balance: Nine Months Ended September 30, 2015 2014 (a) (millions) Noncontrolling interest at December 31, 2014 (b) and December 31, 2013 $ 732 $ ā Payments to NEE for acquisitions of projects (716 ) (288 ) NEE purchase of NEP OpCo's common units 702 ā Cash distributions (47 ) ā Noncash distributions (7 ) ā Member contributions, net (c) 103 1,372 Comprehensive income attributable to noncontrolling interest, including pre-acquisition net income of the 2015 acquisitions 21 14 Noncash member contribution upon transition from predecessor method 3 (60 ) Noncontrolling interest at September 30 $ 791 $ 1,038 ____________________ (a) Prior-period financial information has been retrospectively adjusted as discussed in Note 2. (b) As reported in the 2014 Consolidated Financial Statements. (c) For 2015, primarily construction-related contributions between January 1, 2015 and the respective acquisition dates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities and other fair value measurements on a recurring basis | NEPās financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows: September 30, 2015 December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 56 $ ā $ 56 $ 104 $ ā $ 104 Interest rate swaps ā ā ā ā 2 2 Total assets $ 56 $ ā $ 56 $ 104 $ 2 $ 106 Liabilities: Interest rate swaps $ ā $ 16 $ 16 $ ā $ 11 $ 11 Total liabilities $ ā $ 16 $ 16 $ ā $ 11 $ 11 |
Schedule of other financial instrument, carrying amounts and estimated fair values | The carrying amounts and estimated fair values of other financial instruments, excluding assets and liabilities which are recorded at fair value and disclosed above, are as follows: September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (millions) Notes receivable (a) $ 20 $ 20 $ 20 $ 20 Long-term debt, including current maturities (b) $ 1,910 $ 2,001 $ 1,933 $ 2,008 ____________________ (a) Fair value approximates carrying amount as they bear interest primarily at variable rates and have long-term maturities (Level 2) and are included in other non-current assets on the condensed consolidated balance sheets. (b) Fair value is estimated based on the borrowing rates as of each date for similar issues of debt with similar remaining maturities (Level 2). |
Derivative Instruments and He20
Derivative Instruments and Hedging Activity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the fair values of derivative instruments designated as cash flow hedging instruments included in balance sheets | The fair values of NEP's derivative instruments designated as cash flow hedging instruments are included on NEP's condensed consolidated balance sheets as follows: September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities (millions) Interest rate swaps: Other non-current assets $ ā $ 1 $ 5 $ ā Other current liabilities $ ā $ 6 $ 3 $ 3 Other non-current liabilities $ ā $ 11 $ ā $ 8 |
Schedule of gains (losses) related to cash flow hedges | Gains (losses) related to NEP's cash flow hedges are recorded in NEP's condensed consolidated financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (millions) Interest rate swaps: Losses recognized in other comprehensive income $ (12 ) $ (3 ) $ (10 ) $ (16 ) Losses reclassified from AOCI to net income (a) $ 1 $ 1 $ 5 $ 3 ____________________ (a) Included in interest expense. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Significant short-term and long-term debt issuances and borrowings by subsidiaries of NEP during the nine months ended September 30, 2015 were as follows: Date Issued Debt Issuances/Borrowings Interest Rate Principal Amount Maturity Date (millions) January - February 2015 Senior secured revolving credit facility Variable (a) $ 122 (b) 2019 May 2015 Short-term term loan Variable (a) $ 313 (c) 2016 June 2015 Short-term cash grant bridge loan Variable (a) $ 12 2016 June 2015 Limited-recourse senior secured term loan 4.52% $ 31 2033 July 2015 Limited-recourse term loan Variable (d) $ 81 2026 āāāāāāāāāāāā (a) Variable rate is based on an underlying index plus a margin. (b) At September 30, 2015 , $29 million is outstanding under the revolving credit facility. (c) In connection with the sale of NEP common units and the sale of NEP OpCo common units in September 2015, this loan was repaid. See Note 1 - Equity. (d) Approximately $54 million of the term loan bears interest based on an underlying index plus a margin. The remaining amount of the term loan bears interest at a fixed rate of 4.38% . The long-term debt agreements listed above are secured by liens on certain assets and contain provisions which, under certain conditions, could restrict the payment of distributions or related party fee payments. |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Three months ended September 30, 2015 Balances, June 30, 2015 $ ā $ (49 ) $ (49 ) Other comprehensive loss before reclassification (11 ) (8 ) (19 ) Amounts reclassified from AOCI to interest expense 1 ā 1 Net other comprehensive loss (10 ) (8 ) (18 ) Balances, September 30, 2015 (10 ) (57 ) (67 ) AOCI attributable to noncontrolling interest (9 ) (51 ) (60 ) AOCI attributable to NEP, September 30, 2015 $ (1 ) $ (6 ) $ (7 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Nine months ended September 30, 2015 Balances, December 31, 2014 $ (5 ) $ (39 ) $ (44 ) Other comprehensive loss before reclassification (9 ) (18 ) (27 ) Amounts reclassified from AOCI to interest expense 4 ā 4 Net other comprehensive loss (5 ) (18 ) (23 ) Balances, September 30, 2015 (10 ) (57 ) (67 ) AOCI attributable to noncontrolling interest (9 ) (51 ) (60 ) AOCI attributable to NEP, September 30, 2015 $ (1 ) $ (6 ) $ (7 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Three months ended September 30, 2014 Balances, June 30, 2014 $ (2 ) $ (28 ) $ (30 ) Other comprehensive loss before reclassification (2 ) (7 ) (9 ) Amounts reclassified from AOCI to interest expense 1 ā 1 Net other comprehensive loss (1 ) (7 ) (8 ) Balance sheet adjustment related to transitioning from separate return method (see Note 3) 6 ā 6 Balances, September 30, 2014 3 (35 ) (32 ) AOCI attributable to noncontrolling interest 3 (34 ) (31 ) AOCI attributable to NEP, September 30, 2014 $ ā $ (1 ) $ (1 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Total (millions) Nine months ended September 30, 2014 Balances, December 31, 2013 $ 9 $ (25 ) $ (16 ) Other comprehensive loss before reclassification (15 ) (10 ) (25 ) Amounts reclassified from AOCI to interest expense 3 ā 3 Net other comprehensive loss (12 ) (10 ) (22 ) Balance sheet adjustment related to transitioning from separate return method (see Note 3) 6 ā 6 Balances, September 30, 2014 3 (35 ) (32 ) AOCI attributable to noncontrolling interest 3 (34 ) (31 ) AOCI attributable to NEP, September 30, 2014 $ ā $ (1 ) $ (1 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rental commitments under land use agreements | The total minimum rental commitments at September 30, 2015 under these land use agreements are as follows: Land Use (millions) Remainder of 2015 $ 2 2016 6 2017 6 2018 6 2019 6 2020 7 Thereafter 176 Total minimum land use payments $ 209 |
Schedule of the purpose and amounts of contemplated letters of credit | The purpose and amounts of letters of credit outstanding as of September 30, 2015 are as follows: LOC Facility Purpose Amount Outstanding Dates (millions) PPA security $ 25 September 2011 - Maturity Large generator interconnection agreement obligations 8 September 2011 - Maturity O&M reserve 10 December 2013 - Maturity Debt service reserve 35 August 2014 - Maturity Total $ 78 |
Summary of Significant Accoun24
Summary of Significant Accounting and Reporting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 28, 2015 | May. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jul. 01, 2014 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Restricted cash | $ 16 | $ 16 | $ 82 | [1] | ||||||
Restricted cash, noncurrent | $ 3 | 3 | 3 | |||||||
Common units sold in private placement | 2,594,948 | |||||||||
NEE purchase of NEP OpCo's common units | $ 109 | 702 | $ 0 | |||||||
Proceeds from issuance of common units | 702 | $ 0 | [2] | |||||||
Common units sold in public offering | 8,375,907 | |||||||||
Aggregate purchase price of common units sold in public offering | $ 218 | |||||||||
Property, plant and equipment, net | 3,145 | 3,145 | 3,276 | [1] | ||||||
Deferral related to differential membership interests - VIEs | 419 | 419 | 428 | [1] | ||||||
Investments in equity method investees - VIEs | 18 | 18 | 19 | [1] | ||||||
CITC Proceeds Received by Genesis Due to NEECH [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Restricted cash | [1] | 22 | ||||||||
Variable Interest Entity [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Restricted cash | 13 | 13 | 55 | [1] | ||||||
Property, plant and equipment, net | 707 | 707 | 722 | [1] | ||||||
Palo Duro [Member] | Variable Interest Entity [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Property, plant and equipment, net | 758 | 758 | 812 | |||||||
Deferral related to differential membership interests - VIEs | $ 464 | $ 464 | $ 555 | |||||||
NEP OpCo [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Noncontrolling interest, percent ownership | 22.20% | 22.60% | 22.60% | 20.10% | ||||||
Subsequent Event [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Distribution to unitholders declared (per share) | $ 0.27 | |||||||||
Private Placement [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Price per share of common unit sold | $ 41.87 | |||||||||
Stock Issuance Costs | $ 3 | |||||||||
Public Offering [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Price per share of common unit sold | $ 26 | $ 26 | ||||||||
Stock Issuance Costs | $ 5 | |||||||||
Term Loan [Member] | Short-term Term Loan Due 2016 [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Principal Amount | $ 313 | $ 313 | ||||||||
Subsidiary of NEE [Member] | NEP OpCo [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Common units sold in private placement | 27,000,000 | |||||||||
NEE purchase of NEP OpCo's common units | $ 702 | |||||||||
Proceeds from issuance of common units | $ 110 | |||||||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | |||||||||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Summary of Significant Accoun25
Summary of Significant Accounting and Reporting Policies - Noncontrolling Interest (Details) - USD ($) $ in Millions | May. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 01, 2014 | |
Partners' Capital Attributable to Noncontrolling Interest [Roll Forward] | |||||
Noncontrolling interest, beginning of period | $ 732 | [1] | $ 0 | ||
Payments to NEE for acquisitions of projects | (716) | (288) | |||
NEE purchase of NEP OpCo's common units | $ 109 | 702 | 0 | ||
Cash distributions | (47) | 0 | |||
Noncash distributions | (7) | 0 | |||
Noncash contributions, net | 103 | 1,372 | |||
Comprehensive income attributable to noncontrolling interest, including pre-acquisition net income of the 2015 acquisitions | 21 | 14 | |||
Noncash member contribution upon transition from predecessor method | 3 | (60) | |||
Noncontrolling interest, ending of period | $ 791 | $ 1,038 | |||
NEP OpCo [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, percent ownership | 22.20% | 22.60% | 20.10% | ||
Noncontrolling interest, percent ownership by noncontrolling owners | 79.90% | ||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) CAD in Millions, $ in Millions | Oct. 01, 2015USD ($)MW | May. 12, 2015USD ($)MW | Apr. 30, 2015equity_investmentMWshares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Oct. 01, 2015CADMW | Jul. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Percentage of economic rights | 100.00% | ||||||
NET Midstream [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Ownership interests percentage | 100.00% | ||||||
Acquisition-related costs | $ 5 | $ 5 | |||||
Subsidiaries [Member] | Adelanto I, Adelanto II and McCoy [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of equity method investments | equity_investment | 3 | ||||||
Renewable energy assets, power capacity (megawatts) | MW | 277 | ||||||
Renewable energy assets, power capacity put into service (megawatts) | MW | 95 | ||||||
Subsidiaries [Member] | Ashtabula III, Baldwin, Mammoth Plains and Stateline [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Renewable energy assets, power capacity (megawatts) | MW | 664 | ||||||
Consideration transferred | $ 424 | ||||||
Liabilities assumed in consideration transfer | $ 269 | ||||||
NextEra Energy Operating Partners, LP [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Ownership interests percentage | 50.00% | ||||||
NextEra Energy Partners, LP [Member] | Class B Units, Series 1 [Member] | NextEra Energy Operating Partners, LP [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of units issued | shares | 1,000,000 | ||||||
NextEra Energy Partners, LP [Member] | Class B Units, Series 2 [Member] | NextEra Energy Operating Partners, LP [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of units issued | shares | 1,000,000 | ||||||
Subsequent Event [Member] | Ontario, Canada [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Working capital part of consideration transferred | $ 19 | ||||||
Subsequent Event [Member] | Subsidiaries [Member] | NET Midstream [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred | 2,000 | ||||||
Cash consideration | 934 | ||||||
Liabilities assumed in consideration transfer | 654 | ||||||
Contingent consideratio, additional capital expenditures | 100 | ||||||
Consideration transferred after completion of contingent consideration | $ 2,100 | ||||||
Subsequent Event [Member] | Subsidiaries [Member] | Ontario, Canada [Member] | Wind Generating Facility from NEER [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Renewable energy assets, power capacity (megawatts) | MW | 149 | 149 | |||||
Consideration transferred | $ 210 | ||||||
Liabilities assumed in consideration transfer | $ 294 | ||||||
Receivable acquired in consideration transfer | CAD | CAD 43 | ||||||
Annual interest rate percentage for receivable | 7.10% | 7.10% | |||||
Holdback Payable [Member] | Subsequent Event [Member] | Subsidiaries [Member] | NET Midstream [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indemnity holdback payable | $ 200 | ||||||
Indemnity Holdback [Member] | Subsequent Event [Member] | Subsidiaries [Member] | NET Midstream [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indemnity holdback payable | 200 | ||||||
Reduction in holdback payable | $ 10 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.00% | 4.00% | 19.00% | 21.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency contracts | $ 1 | |
Recurring Basis [Member] | ||
Assets: | ||
Cash equivalents | 56 | $ 104 |
Interest rate swaps | 0 | 2 |
Total assets | 56 | 106 |
Liabilities: | ||
Interest rate swaps | 16 | 11 |
Total liabilities | 16 | 11 |
Recurring Basis [Member] | Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 56 | 104 |
Interest rate swaps | 0 | 0 |
Total assets | 56 | 104 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring Basis [Member] | Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Interest rate swaps | 0 | 2 |
Total assets | 0 | 2 |
Liabilities: | ||
Interest rate swaps | 16 | 11 |
Total liabilities | $ 16 | $ 11 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | $ 20 | $ 20 |
Long-term debt, including current maturities | 1,910 | 1,933 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 20 | 20 |
Long-term debt, including current maturities | $ 2,001 | $ 2,008 |
Derivative Instruments and He30
Derivative Instruments and Hedging Activity - Additional Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 374 | $ 374 | $ 361 |
Net losses included in AOCI expected to be reclassified into interest expense within the next 12 months | 6 | 6 | |
Foreign Currency Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | 41 | 41 | |
Gains related to foreign currency contract | $ 1 | $ 1 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activity - Fair Value of Derivative Instruments Included in Balance Sheets (Details) - Cash Flow Hedges [Member] - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | $ 5 | |
Fair value of derivative instruments, liabilities | $ 1 | |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 3 | |
Fair value of derivative instruments, liabilities | 6 | 3 |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, liabilities | $ 11 | $ 8 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activity - Gains (Losses) Related to Cash Flow Hedges (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedges [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses recognized in other comprehensive income | $ (12) | $ (3) | $ (10) | $ (16) |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses reclassified from AOCI to net income | $ 1 | $ 1 | $ 5 | $ 3 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Oct. 01, 2015 | Sep. 30, 2015 |
Revolving Credit Facility [Member] | Senior Secured Revolving Credit Facility Due 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 122 | |
Amount outstanding under line of credit | 29 | |
Short-term Term Loan Due 2016 [Member] | Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | 313 | |
Short-term Cash Grant Bridge Loan Due 2016 [Member] | Bridge Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | 12 | |
Limited-Recourse Senior Secured Term Loan Due 2033 [Member] | Limited Recourse Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 31 | |
Interest Rate | 4.52% | |
Limited-recourse Term Loan Due 2026 [Member] | Limited Recourse Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 81 | |
Interest Rate | 4.38% | |
Underlying Index Plus Margin [Member] | Limited-recourse Term Loan Due 2026 [Member] | Limited Recourse Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 54 | |
Indirect Subsidiary of NEP [Member] | Subsequent Event [Member] | Variable Rate Senior Secured Term Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 600 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | [2] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Balance, beginning of period | $ (49) | $ (30) | $ (44) | $ (16) | ||||
Other comprehensive loss before reclassification | (19) | (9) | (27) | (25) | ||||
Amounts reclassified from AOCI to interest expense | 1 | 1 | 4 | 3 | ||||
Net other comprehensive loss | (18) | (8) | [1] | (23) | (22) | [1] | ||
Balance, end of period | (67) | (32) | (67) | (32) | ||||
Balance sheet adjustment related to transitioning from separate return method (see Note 3) | 6 | 6 | ||||||
AOCI attributable to noncontrolling interest | (60) | (31) | (60) | (31) | ||||
AOCI attributable to NextEra Energy Partners | (7) | (1) | (7) | (1) | $ (3) | |||
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Balance, beginning of period | 0 | (2) | (5) | 9 | ||||
Other comprehensive loss before reclassification | (11) | (2) | (9) | (15) | ||||
Amounts reclassified from AOCI to interest expense | 1 | 1 | 4 | 3 | ||||
Net other comprehensive loss | (10) | (1) | (5) | (12) | ||||
Balance, end of period | (10) | 3 | (10) | 3 | ||||
Balance sheet adjustment related to transitioning from separate return method (see Note 3) | 6 | 6 | ||||||
AOCI attributable to noncontrolling interest | (9) | 3 | (9) | 3 | ||||
AOCI attributable to NextEra Energy Partners | (1) | 0 | (1) | 0 | ||||
Net Unrealized Gains (Losses) on Foreign Currency Translation [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Balance, beginning of period | (49) | (28) | (39) | (25) | ||||
Other comprehensive loss before reclassification | (8) | (7) | (18) | (10) | ||||
Amounts reclassified from AOCI to interest expense | 0 | 0 | 0 | 0 | ||||
Net other comprehensive loss | (8) | (7) | (18) | (10) | ||||
Balance, end of period | (57) | (35) | (57) | (35) | ||||
Balance sheet adjustment related to transitioning from separate return method (see Note 3) | 0 | 0 | ||||||
AOCI attributable to noncontrolling interest | (51) | (34) | (51) | (34) | ||||
AOCI attributable to NextEra Energy Partners | $ (6) | $ (1) | $ (6) | $ (1) | ||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. | |||||||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||||
Due from related parties | $ 34,000,000 | $ 34,000,000 | $ 219,000,000 | [1] | ||
Due to related party, noncurrent | 18,000,000 | 18,000,000 | 19,000,000 | [1] | ||
Subsidiaries of NEER [Member] | Operations, Maintenance,and Administrative Services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 1,000,000 | $ 1,000,000 | 4,000,000 | $ 3,000,000 | ||
Subsidiaries of NEER [Member] | Operations, Maintenance,and Administrative Services, as well as Payroll and Other Payments [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 7,000,000 | 13,000,000 | ||||
NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 1,000,000 | 1,000,000 | 3,000,000 | 1,000,000 | ||
NEER [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related party, noncurrent | 16,000,000 | 16,000,000 | 16,000,000 | |||
NEER [Member] | Cash Sweep and Credit Support Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest expense | 1,000,000 | $ 1,000,000 | 2,000,000 | $ 1,000,000 | ||
Due from related parties | 34,000,000 | 34,000,000 | $ 218,000,000 | |||
Palo Duro [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related note receivable, noncurrent | $ 16,000,000 | 16,000,000 | ||||
NEP OpCo [Member] | NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Management fee, percent of EBITDA | 1.00% | |||||
Annual management fee | $ 4,000,000 | |||||
Annual management fee, quarterly installments | 1,000,000 | |||||
Management fee, additional payment threshold, minimum EBITDA | 4,000,000 | |||||
NextEra Energy Capital Holdings [Member] | Guarantees and Letters of Credit [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Total amount of letters of credit | 532,000,000 | 532,000,000 | ||||
NEER [Member] | Guarantees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party obligations | $ 53,000,000 | 53,000,000 | ||||
NEER [Member] | Engineering, Procurement, and Construction Contracts [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction | $ 24,000,000 | |||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 2. |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Leased Assets [Line Items] | ||||
Lease expense | $ 4 | $ 4 | $ 12 | $ 10 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Remainder of 2015 | 2 | 2 | ||
2,016 | 6 | 6 | ||
2,017 | 6 | 6 | ||
2,018 | 6 | 6 | ||
2,019 | 6 | 6 | ||
2,020 | 7 | 7 | ||
Thereafter | 176 | 176 | ||
Total minimum land use payments | 209 | 209 | ||
Genesis [Member] | Surety Bond [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Surety bond | $ 23 | $ 23 |
Commitments and Contingencies37
Commitments and Contingencies - Letters of Credit (Details) - Genesis [Member] - Standby Letters of Credit [Member] $ in Millions | Sep. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 83 |
Credit facility, amount outstanding | 78 |
PPA Security [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, amount outstanding | 25 |
Large Generator Interconnection Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, amount outstanding | 8 |
Operations & Maintenance Reserve [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, amount outstanding | 10 |
Debt service reserve [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, amount outstanding | $ 35 |