| Summary of Significant Accounting and Reporting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Basis of presentation - NEP’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S., or GAAP. For all periods prior to the IPO, the accompanying consolidated financial statements represent the combination of the net assets that NEP acquired and were prepared using NEE’s historical basis in the assets acquired and liabilities assumed. For all periods subsequent to the IPO, the accompanying consolidated financial statements represent the consolidated results of NEP. The financial statements prior to the IPO include certain allocations related to income taxes from NEE. Management believes the assumptions and methodology underlying the allocations are reasonable. However, such allocations may not be indicative of the actual level of assets, liabilities and costs that would have been incurred by the predecessor if it had operated as an independent, publicly-traded company during the periods prior to the IPO or of the costs expected to be incurred in the future. The consolidated financial statements include NEP’s accounts and operations and those of its subsidiaries in which NEP has a controlling interest. The acquisitions from NEER described in Note 3 (the 2015 common control acquisitions) were a transfer of assets between entities under common control, which require 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 consolidated financial statements have been retrospectively adjusted to include the historical results of the 2015 common control acquisitions prior to their respective acquisition dates. Adjustments related to the historical results of the 2015 common control acquisitions are attributable to noncontrolling interest for all periods prior to the date the project was acquired by NEP. All intercompany transactions have been eliminated in consolidation. Amounts included in the consolidated financial statements and the accompanying Notes have been adjusted to reflect the retrospective application of Financial Accounting Standards Board (FASB) accounting standard updates related to the presentation of debt issuance costs and deferred taxes in the financial statements. See Debt Issuance Costs and Income Taxes below. Certain amounts included in prior years' consolidated financial statements have been reclassified to conform to the current year's presentation. In the opinion of management, any adjustments necessary for a fair presentation of the consolidated financial statements, in accordance with GAAP, have been made. Following the IPO, NEP presents as cash in its consolidated statements of cash flows certain financing transactions with related parties where it does not directly receive the cash. Use of Significant Estimates - The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In recording transactions and balances resulting from business operations, NEP uses estimates based on the best information available. Estimates are used for such items as plant depreciable lives, tax provisions and allowances, asset retirement obligations, fair value measurements, purchase price allocations, environmental liabilities and legal costs incurred in connection with recorded loss contingencies, among others. As new information becomes available or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. Revenue Recognition - Revenue is generated primarily from various non-affiliated parties under long-term power purchase agreements, Feed-in-Tariff (FIT) agreements and Renewable Energy Standard Offer Program (RESOP) agreements (collectively, PPAs) and natural gas transportation agreements. Certain PPAs are accounted for as operating leases. GAAP requires minimum lease payments to be recognized over the term of the lease and contingent rents to be recorded when the achievement of the contingency becomes probable. None of the operating leases have minimum lease payments, so revenue from these contracts is recognized as energy and any related renewable energy attributes are delivered. Contingent rental revenues from these contracts were approximately $382 million , $257 million and $126 million in 2015 , 2014 and 2013 , respectively. Revenue is recognized as energy and any related renewable energy attributes are delivered, which is when revenue is earned based on energy delivered at rates stipulated in the respective PPAs, or natural gas transportation services are performed. In 2015 , 2014 and 2013 approximately $154 million , $95 million and $51 million respectively, of NEP's consolidated revenues were attributable to foreign countries, primarily related to its Canadian operations. In May 2014, the FASB 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. In July 2015, the FASB approved the deferral of the effective date of the standard. The standard will be effective for NEP beginning January 1, 2018 and may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. NEP is currently evaluating the effect the adoption of this standard will have, if any, on its consolidated financial statements. Interest Costs - NEP recognizes interest expense using the effective interest method over the life of the related debt. Certain of NEP’s debt obligations include escalating interest rates (see Note 9 - Debt) that are incorporated into the effective interest rate for the related debt. Deferred interest includes interest expense recognized in excess of the interest payments accrued for the related debt’s stated interest payments and is recorded in other non-current liabilities on NEP’s consolidated balance sheets. Income Taxes - For periods prior to the date a project is acquired by NEP (NEP acquisition date), income taxes are calculated using the separate return method for each of the renewable energy project entities that are structured as corporations or as limited liability companies electing to be taxed as corporations. 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 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 applicable ownership share of U.S. income taxes. The U.S. income taxes on the remaining ownership share of NEP OpCo earnings are allocated to NEE Equity and are not included in NEP's 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 consolidated financial statements. NEE Equity's share of Canadian taxes is included in noncontrolling interest in NEP's consolidated financial statements. In November 2015, the FASB issued an accounting standard update which simplifies the classification of deferred taxes by eliminating the requirement to separate deferred tax assets and liabilities between current and non-current amounts, and instead requires deferred taxes to be presented as non-current on the balance sheet. NEP early adopted this standard update effective for the year ended December 31, 2015, and applied it retrospectively. The impact of NEP retrospectively adopting the standard update resulted in a reclassification of less than $1 million for the year ended December 31, 2014. Harmonized Sales Taxes - For NEP’s Canadian projects, harmonized sales tax (HST) is composed of a federal and provincial component with taxes collected on sales and taxes paid on goods and services. The HST collected on sales are recorded as a HST payable while those paid on goods and services are recorded as a HST receivable. As such, these taxes have no impact on NEP’s reported earnings. The HST is payable or refundable monthly. At December 31, 2015 and 2014 , the HST receivable was less than $1 million and approximately $26 million , respectively, and is included in other current assets on the accompanying consolidated balance sheets. At both December 31, 2015 and 2014 , the HST payable was approximately $3 million and is included in accounts payable and accrued expenses on the accompanying consolidated balance sheets. Foreign Operations and Currency Translation - NEP’s reporting currency is the U.S. dollar. The functional currency for its Canadian project companies is the Canadian dollar because Canada is the primary economic environment in which it conducts its Canadian operations. The assets and liabilities of the Canadian project companies are translated to U.S. dollars at exchange rates at the balance sheet date. The income and expenses of the Canadian project companies are translated to U.S. dollars at exchange rates in effect during each respective period. The translation adjustment is recorded in accumulated other comprehensive loss (AOCI). Noncontrolling Interest - After the completion of NEP's IPO and as of December 31, 2014, NEP owned a controlling, non-economic general partner interest and an approximately 20.1% limited partner interest in NEP OpCo and NEE Equity owned a noncontrolling 79.9% limited partner interest in NEP OpCo. Distributions to the noncontrolling interest are reflected as Partners/Members' distributions in the consolidated statements of cash flows. NEP's limited partner interest in NEP OpCo increased to approximately 23.2% as of December 31, 2015 . See Note 9. In addition, as part of the acquisition of the Texas pipelines, a subsidiary of NEP acquired a 90% controlling interest in one of the pipelines and a non-affiliated party owns the remaining 10% interest. See Note 3. Equity - Equity reflects the financial position of the parties with an ownership interest in the consolidated financial statements. Prior to the IPO, NEE's ownership interest in the NEP predecessor entity is reflected as additional paid in capital and retained earnings and accumulated other comprehensive loss on the consolidated statements of changes in equity. NextEra Energy Partner GP, Inc. has a total equity interest in NEP of $10,000 at December 31, 2015 and 2014 . Limited partners' equity at December 31, 2015 and 2014 reflects the investment of NEP unitholders, changes to net income attributable to NEP, distributions of available cash to unitholders and other contributions from or distributions to NEP unitholders. Accumulated other comprehensive loss at December 31, 2015 and 2014 reflects comprehensive income attributable to NEP. Noncontrolling interest at December 31, 2015 and 2014 reflects the equity attributable to NEE based on the initial contribution as part of the IPO, the net income and other comprehensive income attributable to noncontrolling interest subsequent to the IPO and contributions to or distributions from noncontrolling interest. Earnings per common unit is reflected beginning July 1, 2014. Prior to the IPO, NEP was an indirect wholly owned subsidiary of NEE and, accordingly, had no earnings per common unit. 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, transmission lines and pipeline facilities. Property, plant and equipment, excluding land and perpetual rights-of-way, is recorded at cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to 50 years , commencing on the date the assets are placed in service or acquired. See Note 7. Maintenance and repairs of property, plant and equipment are charged to operations and maintenance expense, as incurred. Convertible Investment Tax Credits (CITCs) of approximately $699 million and $678 million as of December 31, 2015 and 2014 , respectively, are recorded as a reduction in property, plant and equipment - net on the consolidated balance sheets and are amortized as a corresponding reduction to depreciation expense over the estimated life of the related asset. At December 31, 2013, NEP had recorded a CITC receivable of approximately $180 million associated with one of its solar projects. Of this receivable, $177 million was collected in 2014 with the remaining $3 million recorded as an adjustment to property, plant and equipment - net. 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. Interest capitalized for the years ended December 31, 2015 , 2014 and 2013 was less than $1 million , approximately $4 million and $30 million , respectively. Upon commencement of plant operations, costs associated with construction work in progress are transferred to property, plant and equipment - net. Total net long-lived assets, including construction work in progress, held by operations located in Canada amounted to approximately $879 million and $1,075 million as of December 31, 2015 and 2014 , respectively. Cash and Cash Equivalents - Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. NEP primarily holds investments in money market funds. Accounts Receivable and Allowance for Doubtful Accounts - Accounts receivable are reported at the invoiced or estimated amount adjusted for any write-offs and any estimated allowance for doubtful accounts on the accompanying consolidated balance sheets. The allowance for doubtful accounts is reviewed periodically based on amounts past due and significance. There was no allowance for doubtful accounts recorded as of December 31, 2015 and 2014 . Restricted Cash - At December 31, 2015 and 2014 , approximately $13 million and $55 million , respectively, of current restricted cash on NEP's 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 consolidated balance sheets, represents CITC proceeds due to NextEra Energy Capital Holdings, Inc. (NEECH). The remaining current restricted cash and approximately $3 million of other non-current assets on NEP's consolidated balance sheets at both December 31, 2015 and 2014 are held by certain subsidiaries to pay for certain capital or operating expenditures, as well as to fund required equity contributions pursuant to restrictions contained in the subsidiaries' debt agreements. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds. Concentration of Credit Risk - Financial instruments which potentially subject NEP to concentrations of credit risk consist primarily of accounts receivable and derivative instruments. Accounts receivable are comprised primarily of amounts due from various non-affiliated parties who are counterparties to the PPAs or natural gas transportation agreements. NEP has a limited number of counterparties, all of which are in the energy industry, and this concentration may impact the overall exposure to credit risk, either positively or negatively, in that the counterparties may be similarly affected by changes in economic, industry or other conditions. If any of these customers’ receivable balances should be deemed uncollectible, it could have a material adverse effect on NEP’s consolidated results of operations and financial condition. However, management does not believe significant credit risk exists at December 31, 2015 , because of the creditworthiness of the counterparties. All amounts due from such counterparties at December 31, 2015 and 2014 have been collected. During 2015 , NEP derived approximately 28% and 23% of its consolidated revenue from its contracts with Pacific Gas & Electric Co. and the Independent Electricity System Operator, respectively. Inventories - Spare parts inventories are stated at the lower of weighted-average cost or market and are included in other current assets on NEP’s consolidated balance sheets. Spare parts inventories were approximately $13 million and $10 million as of December 31, 2015 and 2014 , respectively. Prepaid Expenses - Prepaid expenses primarily include prepayments for insurance and certain land lease contracts. The prepaid expense is amortized over the term of the arrangement according to the benefits the contractual arrangement provides. Impairment of Long-Lived Assets and Finite-Lived Intangible Assets - Long-lived assets that are held and used and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. An impairment loss is recognized if the total future estimated undiscounted cash flows expected from an asset are less than its carrying value. An impairment charge is measured by the difference between an asset’s carrying value and fair value. At December 31, 2015 and 2014 , no impairment adjustments were necessary. Business Combinations - For projects acquired in a business combination, NEP allocates the cost of the acquisition to assets acquired and liabilities assumed based on fair values as of the acquisition date. Goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of net assets acquired. Certain assumptions and estimates are employed in determining the fair value of assets acquired and evaluating the fair value of liabilities assumed. See Note 3. Goodwill and Indefinite-Lived Intangible Assets - During 2015 , NEP recorded goodwill of approximately $622 million related to the acquisition of NET Holdings Management, LLC discussed in Note 3. Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually by applying a fair value-based analysis. NEP will complete the annual impairment test for goodwill and indefinite-lived intangibles using an assessment date of October 1. As the acquisition closed on October 1, 2015 and there were no indicators of impairment, impairment tests for goodwill and indefinite-lived intangibles were not performed in 2015. Intangible Asset - Customer Relationships - At December 31, 2015 , NEP's consolidated balance sheets reflect intangible asset - customer relationships of approximately $696 million related to the acquisition of NET Holdings Management, LLC discussed in Note 3. Intangible asset - customer relationships are amortized on a straight-line basis over the estimated useful life of approximately 40 years . For the year ended December 31, 2015 , amortization expense was approximately $4 million and is expected to be approximately $18 million in each of the next five years. Derivative Instruments and Hedging Activities - Derivative instruments, when required to be marked to market, are recorded on NEP’s consolidated balance sheets as either an asset or liability measured at fair value. For interest rate swaps designated as cash flow hedges, generally NEP assesses a hedging instrument’s 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. See Note 6. Fair Value of Financial Instruments - The carrying amount of NEP’s financial instruments, including cash and cash equivalents, accounts receivable, restricted cash, accounts payable and certain accrued expenses approximates fair value because of the short maturity of those instruments. The fair value of cash and cash equivalents is calculated using current market prices. NEP estimates the fair value of its long-term debt using estimated current rates for similar borrowings. See Note 5. Fair Value Measurements - NEP uses several different valuation techniques to measure the fair value of assets and liabilities relying primarily on the market approach of using prices and other market information for identical or comparable assets and liabilities for those assets and liabilities that are measured on a recurring basis. Certain financial instruments may be valued using multiple inputs including discount rates, counterparty credit ratings and credit enhancements. NEP’s 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. See Note 5. Debt Issuance Costs - Debt issuance costs include fees and costs incurred to obtain long-term debt and are amortized over the life of the related debt using the effective interest rate established at debt issuance. Effective December 31, 2015, NEP retrospectively adopted an accounting standard update which changed the presentation of debt issuance costs in the consolidated financial statements. This update requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs was not affected by this standard. Upon adoption, NEP reclassified debt issuance costs, net of accumulated amortization, of approximately $40 million as of December 31, 2014 from non-current other assets to long-term debt. NEP added approximately $16 million and $10 million of debt issuance costs during the years ended December 31, 2015 and 2014 , respectively. The amortization of debt issuance costs totaled approximately $7 million , $6 million and $4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, and is included in interest expense in NEP’s accompanying consolidated statements of income. Asset Retirement Obligations - Asset retirement obligations are those for which a legal obligation exists under laws, statutes, and written or oral contracts, including obligations arising under the doctrine of promissory estoppel, and for which the timing or method of settlement may be conditioned on a future event. NEP accounts for asset retirement obligations and conditional asset retirement obligations (collectively, AROs) in accordance with GAAP which requires that a liability for the fair value of an ARO be recognized in the period in which it is incurred if it can be reasonably estimated, with the offsetting associated asset retirement costs capitalized as part of the carrying amount of the long-lived asset. The asset retirement cost is subsequently allocated to expense using a systematic and rational method over the asset’s estimated useful life. Changes in the ARO resulting from the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense, which is included in depreciation and amortization expense in NEP’s consolidated statements of income. Changes resulting from revisions to the timing or amount of the original estimate of cash flows are recognized as an increase or a decrease in the asset retirement cost, or income when the asset retirement cost is depleted. NEP recorded accretion expense of approximately $2 million , $1 million and $1 million in 2015 , 2014 and 2013 , respectively. Additionally, new AROs were established amounting to approximately $9 million in 2014 . Investments in Equity Method Investees - NEP accounts for the investments in its unconsolidated entities under the equity method. NEP’s share of earnings (loss) in the unconsolidated entities is included in equity in earnings of equity method investees in the consolidated statements of income. NEP records losses of the unconsolidated entities only to the extent of its investment. All equity in earnings of the equity method investees is allocated to net income attributable to noncontrolling interest. See Note 3 and Note 8. Sale of Differential Membership Interests - In December 2014, subsidiaries of NEER sold their Class B membership interests in two wind projects to third-party tax equity investors for a total of approximately $428 million. The holders of the Class B membership interests will receive a portion of the economic attributes of the facilities, including income tax attributes, for ten years . The tax equity investors will also make ongoing deferred contingent capital contributions based on the production and sale of electricity that generates production tax credits under Section 45 of the Internal Revenue Code of 1986, as amended. The transactions are not treated as a sale, but as a financing, under the accounting rules and the proceeds received are deferred and recorded as a liability in deferral related to differential membership interests - VIEs on NEP's consolidated balance sheets. Effective December 31, 2015, NEP retrospectively adopted an accounting standard update which requires that debt issuance costs related to a recognized liability be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Upon adoption, NEP reclassified deferred financing costs, net of accumulated amortization, of approximately $4 million as of December 31, 2014 from non-current other assets to deferral related to differential membership interests - VIEs. As of December 31, 2015, this liability includes approximately $3 million of deferred financing costs, net of accumulated amortization. The deferred amount is being recognized in benefits associated with differential membership interests - net in NEP's consolidated statements of income as the Class B members receive their portion of the economic attributes. NEP operates and manages the two wind projects, and consolidates the entities that directly and indirectly own the two wind projects. Variable Interest Entities (VIEs) - An entity is considered to be a VIE when its total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, or its equity investors, as a group, lack the characteristics of having a controlling financial interest. A reporting company is required to consolidate a VIE as its primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. NEP evaluates whether an entity is a VIE whenever reconsideration events as defined by the accounting guidance occur. See Note 8. 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 continues to evaluate the effect the adoption of this standard will have, if any, on its consolidated financial statements. |
