Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | NEXTERA ENERGY PARTNERS, LP |
Entity Central Index Key | 1,603,145 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 54,247,705 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
OPERATING REVENUES | ||||
Renewable energy sales | $ 126 | $ 124 | [1] | |
Texas pipelines service revenues | 49 | 47 | [1] | |
Total operating revenues | [2] | 175 | 171 | [1] |
OPERATING EXPENSES | ||||
Operations and maintenance | [3] | 52 | 44 | [1] |
Depreciation and amortization | 46 | 50 | [1],[4] | |
Taxes other than income taxes and other | 4 | 4 | [1] | |
Total operating expenses | 102 | 98 | [1] | |
OPERATING INCOME | 73 | 73 | [1] | |
OTHER INCOME (DEDUCTIONS) | ||||
Interest expense | (43) | (86) | [1] | |
Benefits associated with differential membership interests - net | 19 | 13 | [1],[4] | |
Equity in earnings of equity method investee | 1 | 2 | ||
Equity in losses of non-economic ownership interests | 0 | (13) | [1],[4] | |
Other - net | 0 | (3) | [1] | |
Total other income (deductions) - net | (23) | (87) | [1] | |
INCOME (LOSS) BEFORE INCOME TAXES | 50 | (14) | [1] | |
INCOME TAX EXPENSE (BENEFIT) | 8 | (2) | [1] | |
NET INCOME (LOSS) | 42 | (12) | [1],[4],[5],[6],[7] | |
Less net income (loss) attributable to noncontrolling interest | [8] | 30 | (17) | [1] |
NET INCOME ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 12 | $ 5 | [1] | |
Weighted average number of common units outstanding - basic and assuming dilution (in shares) | 54.2 | 34.5 | [1] | |
Earnings per common unit attributable to NextEra Energy Partners, LP - basic and assuming dilution (in dollars per share) | $ 0.22 | $ 0.14 | [1] | |
Distributions per common unit (in dollars per unit) | $ 0.3525 | $ 0.3075 | [1] | |
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[2] | Includes related party revenues of approximately $5 million and $4 million for the three months ended March 31, 2017 and 2016, respectively. | |||
[3] | Includes O&M expenses related to renewable energy projects of $22 million and $23 million and O&M expenses related to the Texas pipelines of $12 million and $10 million for the three months ended March 31, 2017 and 2016, respectively. Total O&M expenses presented includes related party amounts of approximately $21 million and $12 million for the three months ended March 31, 2017 and 2016, respectively. | |||
[4] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[5] | Net income attributable to noncontrolling interest includes the pre-acquisition net income of the common control acquisitions. See Note 1. | |||
[6] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[7] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[8] | et income (loss) attributable to noncontrolling interest includes the pre-acquisition net income of the common control acquisitions. See Note 1. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Related party revenues | $ 5 | $ 4 |
Operations and maintenance related to renewable energy projects | 22 | 23 |
Operations and maintenance related to Texas pipelines | 12 | 10 |
Operations and maintenance related party | $ 21 | $ 12 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | [3] | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 42 | $ (12) | [1],[2],[4],[5] | |
OTHER COMPREHENSIVE INCOME, NET OF TAX | ||||
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive loss to net income (net of $1 and $0 tax expense, respectively) | 2 | 1 | ||
Net unrealized gains on foreign currency translation (net of $0 and $1 tax expense, respectively) | 0 | 6 | ||
Other comprehensive income (loss) related to equity method investee (net of $0 tax expense and $1 tax benefit, respectively) | 1 | (1) | ||
Total other comprehensive income, net of tax | 3 | 6 | [5] | |
COMPREHENSIVE INCOME (LOSS) | 45 | (6) | ||
Less comprehensive income (loss) attributable to noncontrolling interest | [6] | 32 | (12) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 13 | $ 6 | ||
[1] | Net income attributable to noncontrolling interest includes the pre-acquisition net income of the common control acquisitions. See Note 1. | |||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[3] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[4] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[5] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[6] | omprehensive income (loss) attributable to noncontrolling interest includes the pre-acquisition comprehensive income (loss) of the common control acquisitions. See Note 1. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive income to net income, tax expense | $ 0 | $ 1 | |
Unrealized gains (losses) on foreign currency translation, tax benefit | 0 | 1 | |
Other comprehensive income (loss) related to equity method investee, tax (benefit) expense | $ 0 | $ (1) | |
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 82 | $ 147 |
Accounts receivable | 89 | 80 |
Due from related parties | 99 | 67 |
Restricted cash | 34 | 33 |
Other current assets | 29 | 28 |
Total current assets | 333 | 355 |
Non-current assets: | ||
Property, plant and equipment - net | 5,029 | 5,051 |
Deferred income taxes | 253 | 255 |
Intangible assets - customer relationships | 674 | 678 |
Goodwill | 628 | 628 |
Investment in equity method investee | 88 | 93 |
Non-Economic Ownership Interests | 11 | 12 |
Other non-current assets | 76 | 78 |
Total non-current assets | 6,759 | 6,795 |
TOTAL ASSETS | 7,092 | 7,150 |
Current liabilities: | ||
Accounts payable and accrued expenses | 18 | 19 |
Due to related parties | 17 | 19 |
Current maturities of long-term debt | 87 | 78 |
Acquisition holdback | 0 | 199 |
Accrued interest | 15 | 25 |
Derivatives | 17 | 18 |
Other current liabilities | 28 | 39 |
Total current liabilities | 182 | 397 |
Non-current liabilities: | ||
Long-term debt | 3,681 | 3,508 |
Deferral related to differential membership interests | 867 | 877 |
Deferred income taxes | 51 | 45 |
Asset retirement obligation | 66 | 65 |
Non-current due to related party | 22 | 22 |
Other non-current liabilities | 66 | 67 |
Total non-current liabilities | 4,753 | 4,584 |
TOTAL LIABILITIES | 4,935 | 4,981 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Limited partners (common units issued and outstanding - 54.2) | 1,739 | 1,746 |
Accumulated other comprehensive loss | (2) | (3) |
Noncontrolling interest | 420 | 426 |
TOTAL EQUITY | 2,157 | 2,169 |
TOTAL LIABILITIES AND EQUITY | $ 7,092 | $ 7,150 |
Condensed Consolidated Balance7
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares shares in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common units outstanding | 54.2 | 54.2 |
Common units issued | 54.2 | 54.2 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 42 | $ (12) | [1],[2],[3],[4],[5] |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 46 | 50 | [2],[4] |
Change in value of derivative contracts | 2 | 47 | [4] |
Deferred income taxes | 7 | (4) | [4] |
Benefits associated with differential membership interests - net | (19) | (13) | [2],[4] |
Equity in earnings of equity method investee, net of distributions received | 5 | (2) | |
Equity in losses of non-economic ownership interests | 0 | 13 | [2],[4] |
Other - net | 3 | 6 | [4] |
Changes in operating assets and liabilities: | |||
Accounts receivable | (9) | (13) | [4] |
Other current assets | (3) | 2 | [4] |
Other non-current assets | (7) | (3) | [4] |
Accounts payable and accrued expenses | (2) | (2) | [4] |
Due to related parties | (2) | 0 | [4] |
Other current liabilities | (23) | (19) | [4] |
Payment of acquisition holdback | (14) | 0 | [4] |
Other non-current liabilities | 9 | 0 | [4] |
Net cash provided by operating activities | 35 | 50 | [4] |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of membership interests in subsidiaries | 0 | (325) | [4] |
Capital expenditures | (8) | (247) | [4] |
Changes in restricted cash | 0 | (35) | [4] |
Payments to related parties under CSCS agreement - net | (32) | (17) | [4] |
Net cash used in investing activities | (40) | (624) | [4] |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of common units - net | 0 | 292 | [4] |
Issuances of long-term debt | 210 | 116 | [4] |
Retirements of long-term debt | (37) | (65) | [4] |
Partners/Members' contributions | 0 | 236 | [4] |
Partners/Members' distributions | (56) | (46) | [4] |
Proceeds from differential membership investors | 12 | 11 | [4] |
Payments to differential membership investors | (3) | (3) | [4] |
Change in amounts due to related parties | (1) | 1 | [4] |
Payment of acquisition holdback | (186) | 0 | [4] |
Net cash provided by (used in) financing activities | (61) | 542 | [4] |
Effect of exchange rate changes on cash | 1 | 2 | [4] |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (65) | (30) | [4] |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 147 | 164 | [4] |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 82 | 134 | [4] |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Partners/Members' noncash distributions | 0 | 25 | [4] |
Members’ noncash contributions for construction costs and other | 0 | 86 | [4] |
Change in noncash investments in equity method investees - net | 1 | 3 | [4] |
Accrued but not paid for capital and other expenditures | 3 | 8 | [4] |
Change in goodwill related to change in purchase accounting valuation | $ 0 | $ 6 | [4] |
[1] | Net income attributable to noncontrolling interest includes the pre-acquisition net income of the common control acquisitions. See Note 1. | ||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | ||
[3] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | ||
[4] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | ||
[5] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Units [Member] | Limited Partners [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | |||||
Beginning balance, units at Dec. 31, 2015 | 30.6 | |||||||||
Beginning balance at Dec. 31, 2015 | $ 1,892 | [1] | $ 935 | $ (6) | [1] | $ 963 | [1] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Acquisition of membership interests in subsidiaries | [1] | (325) | (325) | |||||||
Limited partners/related party contribution and transition | 54 | [1] | 57 | [2] | (3) | [1],[3] | ||||
Issuance of common units, units | 11.3 | |||||||||
Issuance of common units | 292 | [1] | 292 | |||||||
Related party note receivable | (25) | (25) | ||||||||
Net income (loss) | [4] | (12) | [1],[5],[6],[7] | 5 | (17) | [1] | ||||
Other comprehensive income (loss) | [1] | 6 | [6] | 1 | 5 | |||||
Related party contributions | [1] | 326 | 326 | |||||||
Related party distributions | [1] | (37) | (37) | |||||||
Change in equity method investees | [1] | 3 | 3 | |||||||
Distributions to unitholders | (9) | [1] | (9) | |||||||
Ending balance, units at Mar. 31, 2016 | 41.9 | |||||||||
Ending balance at Mar. 31, 2016 | $ 2,165 | [1] | 1,280 | (5) | [1] | 890 | [1] | |||
Beginning balance, units at Dec. 31, 2016 | 54.2 | 54.2 | ||||||||
Beginning balance at Dec. 31, 2016 | $ 2,169 | 1,746 | (3) | 426 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 42 | 12 | 30 | |||||||
Other comprehensive income (loss) | 3 | 1 | 2 | |||||||
Related party distributions | (37) | (37) | ||||||||
Change in equity method investees | (1) | (1) | ||||||||
Distributions to unitholders | $ (19) | (19) | ||||||||
Ending balance, units at Mar. 31, 2017 | 54.2 | 54.2 | ||||||||
Ending balance at Mar. 31, 2017 | $ 2,157 | $ 1,739 | $ (2) | $ 420 | ||||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||||||||
[2] | Deferred tax asset recognized by NEP related to NEP equity issuances and acquisition of subsidiary membership interests. | |||||||||
[3] | Related party noncash contribution (distribution), net, upon transition from predecessor accounting method. | |||||||||
[4] | Net income attributable to noncontrolling interest includes the pre-acquisition net income of the common control acquisitions. See Note 1. | |||||||||
[5] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||||||||
[6] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||||||||
[7] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During 2016, a subsidiary of NEP completed several acquisitions from NEER which were transfers of assets between entities under common control and 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 common control acquisitions prior to their respective acquisition dates. On April 20, 2017, an indirect subsidiary of NEP entered into a purchase and sale agreement with an indirect subsidiary of NEER to acquire Golden West Wind Holdings, LLC, which indirectly owns an approximately 249 MW wind generating facility located in El Paso County, Colorado. NEP expects to complete the acquisition in the second quarter of 2017 for a total consideration of approximately $238 million , plus the assumption of approximately $184 million in existing liabilities related to differential membership interests. The purchase price is subject to working capital and other adjustments. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For periods prior to the date a project is acquired by NEP (NEP acquisition date), income taxes are calculated on the predecessor method using the separate return method for the renewable energy projects structured as limited liability companies or corporations. Income taxes are not included for entities that are structured as flow through entities (partnerships). For periods after the NEP acquisition date, income taxes are calculated on the successor method where taxes are calculated for NEP as a single taxpaying corporation for U.S. federal and state income taxes (based on its election to be taxed as a corporation). Because NEP OpCo is a limited partnership, NEP only recognizes in income its applicable ownership share of U.S. income taxes related to the U.S. and Canadian projects, allocated by NEP OpCo. The Canadian subsidiaries are all Canadian taxpayers, and therefore NEP recognizes in income all of the Canadian taxes. For periods after the NEP acquisition date, income taxes include NEP's applicable ownership share of U.S. taxes and 100% of Canadian taxes. Net income or loss attributable to noncontrolling interest includes no U.S. taxes and NEER's applicable ownership share of Canadian taxes. Net income attributable to NEP includes NEP's applicable ownership share of U.S. and Canadian taxes. The effective tax rates for the three months ended March 31, 2017 and 2016 were approximately 16% and 14% , respectively. The effective tax rate is affected by recurring items, such as the relative amount of income earned in jurisdictions, valuation allowances on deferred tax assets, 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 the market approach of using prices and other market information for identical and/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. NEP’s assessment of the significance of any particular input to the fair value measurement requires judgment and may affect 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. Transfers between fair value hierarchy levels occur at the beginning of the period in which the transfer occurred. Cash Equivalents and Restricted Cash Equivalents - The fair value of money market funds that are included in cash and cash equivalents, restricted cash and other non-current assets on the condensed consolidated balance sheets is estimated using a market approach based on current observable market prices. Interest Rate and Foreign Currency Contracts - NEP estimates the fair value of its derivatives using an income approach based on a discounted cash flows valuation technique utilizing the net amount of estimated future cash inflows and outflows related to the agreements. The primary inputs used in the fair value measurements include the contractual terms of the derivative agreements, current interest rates, foreign currency exchange rates and credit profiles. 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. NEP’s financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 22 $ — $ 22 $ 66 $ — $ 66 Restricted cash equivalents 32 — 32 29 — 29 Interest rate contracts — 14 14 — 15 15 Foreign currency contracts — 1 1 — 1 1 Total assets $ 54 $ 15 $ 69 $ 95 $ 16 $ 111 Liabilities: Interest rate contracts $ — $ 41 $ 41 $ — $ 44 $ 44 Total liabilities $ — $ 41 $ 41 $ — $ 44 $ 44 Financial Instruments Recorded at Other than Fair Value - The carrying amount of short-term debt approximates its fair value. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows: March 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (millions) Long-term debt, including current maturities (a) $ 3,768 $ 3,895 $ 3,586 $ 3,680 ____________________ (a) As of March 31, 2017 and December 31, 2016, approximately $2,995 million and $2,808 million , respectively, of the fair value is estimated using a market approach based on quoted market prices for the same or similar issues (Level 2); the balance is estimated using an income approach utilizing a discounted cash flow valuation technique, considering the current credit profile of the debtor (Level 3). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 3 Months Ended |
Mar. 31, 2017 | |
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 condensed consolidated balance sheets as either assets or liabilities and measures them at fair value each reporting period. NEP does not utilize hedge accounting for its derivative instruments. In connection with certain of its outstanding and expected future debt issuances and borrowings, NEP entered into interest rate contracts to manage interest rate cash flow risk. These agreements allow NEP to offset the variability of its floating-rate interest cash flows with the variable interest cash flows received from the interest rate contracts. All changes in the derivatives' fair value are recognized in interest expense in the condensed consolidated statements of income. 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. As of March 31, 2017 and December 31, 2016 , the combined notional amounts of the interest rate contracts were approximately $2,113 million and $2,119 million , respectively. At March 31, 2017 , NEP's AOCI included amounts related to discontinued cash flow hedges, which have expiration dates through 2033. At March 31, 2017, approximately $7 million of net unrealized losses are expected to be reclassified into interest expense within the next 12 months as interest payments are made. Such amount assumes no change in scheduled principal payments. Cash flows from these interest rate swap contracts are reported in cash flows from operating activities in the condensed consolidated statements of cash flows. NEP enters into certain foreign currency exchange contracts to economically hedge its cash flows from foreign currency rate fluctuations. As of March 31, 2017 and December 31, 2016 , the notional amount of the foreign currency contracts was approximately $55 million and $46 million , respectively. During the three months ended March 31, 2017 and 2016 , NEP recorded approximately $1 million and $3 million of losses, respectively, related to the foreign currency contracts in other - net in the condensed consolidated statements of income. Fair Value of Derivative Instruments - The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at March 31, 2017 and December 31, 2016 , as required by disclosure rules, as well as the location of the net derivative positions, based on the expected timing of future payments, on the condensed consolidated balance sheets. March 31, 2017 Gross Basis Net Basis Assets Liabilities Assets Liabilities (millions) Interest rate contracts $ 14 $ 41 $ 16 $ 43 Foreign currency contracts 1 — 1 — Total fair values $ 15 $ 41 $ 17 $ 43 Net fair value by balance sheet line item: Other current assets $ 2 Other non-current assets 15 Current derivative liabilities $ 17 Other non-current liabilities 26 Total derivatives $ 17 $ 43 December 31, 2016 Gross Basis Net Basis Assets Liabilities Assets Liabilities (millions) Interest rate contracts $ 15 $ 44 $ 17 $ 46 Foreign currency contracts 1 — 1 — Total fair values $ 16 $ 44 $ 18 $ 46 Net fair value by balance sheet line item: Other current assets $ 1 Other non-current assets 17 Current derivative liabilities $ 18 Other non-current liabilities 28 Total derivatives $ 18 $ 46 Financial Statement Impact of Derivative Instruments - Losses related to NEP's interest rate contracts are recorded in the condensed consolidated financial statements as follows: Three Months Ended March 31, 2017 2016 (millions) Interest rate contracts: Losses reclassified from AOCI to interest expense $ (3 ) $ (1 ) Losses recognized in interest expense $ (2 ) $ (44 ) |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities NEP has identified NEP OpCo as a VIE. NEP OpCo is a limited partnership with a general partner and limited partners. NEP has consolidated the results of NEP OpCo and its subsidiaries because of its controlling interest in the general partner of NEP OpCo. At March 31, 2017 , NEP owned an approximately 34.8% limited partner interest in NEP OpCo and NEE Equity owned a noncontrolling 65.2% limited partner interest in NEP OpCo. The assets and liabilities of NEP OpCo as well as the operations of NEP OpCo represent substantially all of NEP's assets and liabilities and its operations. In addition, at March 31, 2017 , NEP consolidated four VIEs related to certain subsidiaries that have sold differential membership interests in entities which own and operate six wind electric generation facilities. Certain investors that have no equity at risk in the VIEs hold differential membership interests, which give them the right to receive a portion of the economic attributes of these wind electric generation facilities, including certain tax attributes. The assets and liabilities of the VIEs, consisting primarily of property, plant and equipment - net and deferral related to differential membership interests, totaled approximately $1,634 million and $914 million at March 31, 2017 , respectively, and $1,647 million and $929 million at December 31, 2016 , respectively. In October 2016, a subsidiary of NEP completed the acquisition from NEER of an indirect 24% interest in Desert Sunlight Investment Holdings, LLC (Desert Sunlight) which is reflected as investment in equity method investee on the condensed consolidated balance sheets. Desert Sunlight owns two project entities, which together make up the Desert Sunlight Solar Energy Center, a 550 MW solar generation plant located in Riverside County, California. NEER retained an interest in Desert Sunlight and will remain the managing member. NEP is not the primary beneficiary and therefore does not consolidate this entity because it does not control any of the ongoing activities of this entity, was not involved in the initial design of this entity and does not have a controlling interest in this entity. In April 2015, a subsidiary of NEP made an equity method investment in three NEER solar projects. 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 (non-economic ownership interests). 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. NEER has agreed to indemnify NEP against all risks relating to NEP’s ownership 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 operation of the projects at its own cost, and to contribute to the projects any capital necessary for the operation of the projects, until NEER offers to sell economic interests to NEP and NEP accepts such offer. At March 31, 2017 and December 31, 2016 , NEP's equity method investment related to the non-economic ownership interests is reflected as investments in non-economic ownership interests on the condensed consolidated balance sheets. All equity in earnings of the non-economic ownership interests 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. |
Capitalization
Capitalization | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Capitalization | Capitalization Debt - Significant long-term debt issuances and borrowings by subsidiaries of NEP during the three months ended March 31, 2017 were as follows: Date Issued Debt Issuances/Borrowings Interest Rate Principal Amount Maturity Date (millions) February 2017 Senior secured revolving credit facility Variable (a) $ 10 2019 March 2017 Senior secured term loans Variable (a) $ 200 2018 - 2019 ———————————— (a) Variable rate is based on an underlying index plus a margin. 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. At March 31, 2017, NEP's subsidiaries were in compliance with all financial debt covenants under their project financings; however, in the fourth quarter of 2016, one project was unable to fully fund its debt reserve by approximately $2 million . Equity - On April 20, 2017, the board of directors of NEP GP authorized a distribution of $ 0.365 per common unit payable on May 15, 2017 to its unitholders of record on May 8, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Income) Loss | Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Net Unrealized Net Unrealized Other Comprehensive Income (Loss) Related to Equity Method Investee Total (millions) Three months ended March 31, 2017 Balances, December 31, 2016 $ (4 ) $ (105 ) $ (16 ) $ (125 ) Amounts reclassified from AOCI to interest expense 2 — — 2 Other comprehensive income related to equity method investee — — 1 1 Net other comprehensive income 2 — 1 3 Balances, March 31, 2017 $ (2 ) $ (105 ) $ (15 ) $ (122 ) AOCI attributable to noncontrolling interest $ (3 ) $ (101 ) $ (16 ) $ (120 ) AOCI attributable to NEP $ 1 $ (4 ) $ 1 $ (2 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Other Comprehensive Loss Related to Equity Method Investee Total (millions) Three months ended March 31, 2016 Balances, December 31, 2015 $ (11 ) $ (108 ) $ (18 ) $ (137 ) Amounts reclassified from AOCI to interest expense 1 — — 1 Net unrealized gains on foreign currency translation — 6 — 6 Other comprehensive loss related to equity method investee — — (1 ) (1 ) Net other comprehensive income (loss) 1 6 (1 ) 6 Balances, March 31, 2016 $ (10 ) $ (102 ) $ (19 ) $ (131 ) AOCI attributable to noncontrolling interest $ (10 ) $ (97 ) $ (19 ) $ (126 ) AOCI attributable to NEP $ — $ (5 ) $ — $ (5 ) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Each project 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. These services are reflected as operations and maintenance in the condensed consolidated statements of income. Additionally, a NEP subsidiary pays an affiliate for transmission services which are reflected as operations and maintenance in the condensed consolidated statements of income. Certain projects have also entered into various types of agreements including those related to shared facilities and transmission lines, transmission line easements, technical support and construction coordination with subsidiaries of NEER whereby certain fees or cost reimbursements are paid to, or received by, certain subsidiaries of NEER. Management Services Agreement - Under the MSA, an indirect wholly owned subsidiary of NEE provides operational, management and administrative services to NEP, including managing NEP’s day to day affairs and providing individuals to act as NEP GP’s 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 pays NEE an annual management fee equal to the greater of 1% of the sum of NEP OpCo’s 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 is paid in quarterly installments with an additional payment each January to the extent 1% of the sum of NEP OpCo’s 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 also makes certain payments to NEE based on the achievement by NEP OpCo of certain target quarterly distribution levels to its unitholders. NEP’s O&M expenses for the three months ended March 31, 2017 and 2016 include approximately $16 million and $7 million , respectively, related to 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 NEP’s subsidiaries’ 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. NEP’s O&M expenses for the three months ended March 31, 2017 and 2016 include approximately $1 million and less than $1 million , respectively, related to the CSCS agreement. NEER and certain of its subsidiaries may withdraw funds (Project Sweeps) received by NEP OpCo under the CSCS agreement, or its subsidiaries in connection with certain of the long-term debt agreements, 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 subsidiaries’ 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 amounts held in accounts belonging to NEER or its subsidiaries as of March 31, 2017 and December 31, 2016 were approximately $97 million and $65 million, respectively, and are included in due from related parties on the 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 or NEER 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. Also, under certain financing agreements, indemnifications have been provided by NEECH. 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 March 31, 2017 , NEECH or NEER guaranteed or provided indemnifications, letters of credit or bonds totaling approximately $701 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 the indemnifications to the VIEs' respective investors. As of March 31, 2017 , NEER guaranteed a total of approximately $77 million related to these obligations. Due to Related Party - Non-current amounts due to related party on the condensed consolidated balance sheets represent amounts owed by certain of NEP's wind projects to NEER to refund NEER for certain transmission costs paid on behalf of the wind projects. Amounts will be paid to NEER as the wind projects receive payments from third parties for related notes receivable recorded in other non-current assets on the condensed consolidated balance sheets. Transportation and Fuel Management Agreements - In connection with the acquisition of the Texas pipeline business, a subsidiary of NEP assigned to a subsidiary of NEER certain gas commodity agreements in exchange for entering into transportation agreements and a fuel management agreement whereby the benefits of the gas commodity agreements (net of transportation paid to the NEP subsidiary) are passed back to the NEP subsidiary. During the three months ended March 31, 2017 and 2016 , NEP recognized approximately $5 million and $4 million , respectively, in revenues related to the transportation and fuel management agreements. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting and Reporting Policies | Summary of Significant Accounting and Reporting Policies Revenue Recognition - In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standards update which provides guidance on the recognition of revenue from contracts with customers and requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows from an entity's contracts with customers. The standards update will be effective for NEP beginning January 1, 2018 with early adoption on January 1, 2017 permitted. The standards update may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). NEP is currently reviewing individual contracts in order to determine the impact, if any, this standards update will have on its consolidated financial statements. A number of industry-specific implementation issues are still unresolved and the final resolution of certain of these issues could impact NEP's current accounting policies and/or revenue recognition patterns. NEP currently anticipates adopting this standards update on January 1, 2018 using the modified retrospective method. Accounting for Partial Sales of Nonfinancial Assets - In February 2017, the FASB issued an accounting standards update regarding the accounting for partial sales of nonfinancial assets. NEP anticipates adopting the standards update on January 1, 2018, concurrent with the FASB's new revenue recognition standard. The standards update may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as an adjustment to retained earnings as of the date of initial application. NEP is currently evaluating the effect the adoption of this standards update will have on its consolidated financial statements. Property, Plant and Equipment - net - NEP reviews the estimated useful lives of its fixed assets on an ongoing basis. NEP's most recent review indicated that the actual lives of certain equipment at its wind plants are expected to be longer than previously estimated for depreciation purposes. As a result, effective January 1, 2017, NEP changed the estimated useful lives of certain wind plant equipment from 30 years to 35 years to better reflect the period during which these assets are expected to remain in service. This change increased net income attributable to NEP by approximately $1 million and increased basic and diluted earnings per unit attributable to NEP by approximately $0.02 for the three months ended March 31, 2017. For the year ended December 31, 2017, the change is expected to increase net income attributable to NEP by approximately $4 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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 $6 million and $5 million for the three months ended March 31, 2017 and 2016 , respectively, and is included in operations and maintenance expenses in the condensed consolidated statements of income. The total minimum non-cancelable rental commitments at March 31, 2017 under these land use agreements are as follows: Land Use (millions) Remainder of 2017 $ 7 2018 10 2019 10 2020 10 2021 10 Thereafter 337 Total minimum land use payments $ 384 One of NEP’s solar project's land leases 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 the solar project's option and will be subject to the regulations existing at the time of renewal. In connection with the terms of this lease, the solar project 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. Certain varying lease payments are considered contingent rent and, therefore, expense is recognized as incurred. Development, Engineering and Construction Commitments - At March 31, 2017 , the Texas pipelines had several open engineering, procurement and construction contracts related to the procurement of materials and services. Those contracts have varying payment terms and some include performance obligations that allow the Texas pipelines to receive liquidated damages if the contractor does not perform. As of March 31, 2017 , the Texas pipelines purchased approximately $4 million under these contracts, for which costs have been capitalized in construction work in progress which is included in property, plant and equipment - net on the condensed consolidated balance sheet. As of March 31, 2017 , the Texas pipelines have remaining commitments under these contracts of approximately $10 million . Letter of Credit Facilities - Two of NEP’s projects entered into letter of credit (LOC) facilities under which the LOC lenders may issue standby letters of credit not to exceed approximately $119 million in the aggregate. These LOC facilities have maturity dates of August 2017 and June 2022. Approximately $93 million of LOCs are outstanding as of March 31, 2017 primarily related to debt service reserves and security for certain of the projects' agreements, including a PPA. Canadian FIT Contracts -The FIT contracts relating to NEP's wind projects located in Canada (Canadian projects) 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 two projects is 25% and the MRDCL for the other two projects is 50% . Following their respective CODs, the Canadian projects 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 the Canadian projects acknowledging the completeness of their domestic content reports. The IESO has the right to audit the Canadian 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 any of these Canadian projects 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. Acquisition Holdback - At December 31, 2016 , the condensed consolidated balance sheets included an acquisition holdback related to the satisfaction of any indemnification obligations of the Texas pipelines sellers through April 2017 (indemnity holdback). During the three months ended March 31, 2017 , the indemnity holdback was released under the terms of the Texas pipelines acquisition agreement and approximately $200 million was paid to the sellers. |
Summary of Significant Accoun20
Summary of Significant Accounting and Reporting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Guidance | Summary of Significant Accounting and Reporting Policies Revenue Recognition - In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standards update which provides guidance on the recognition of revenue from contracts with customers and requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows from an entity's contracts with customers. The standards update will be effective for NEP beginning January 1, 2018 with early adoption on January 1, 2017 permitted. The standards update may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). NEP is currently reviewing individual contracts in order to determine the impact, if any, this standards update will have on its consolidated financial statements. A number of industry-specific implementation issues are still unresolved and the final resolution of certain of these issues could impact NEP's current accounting policies and/or revenue recognition patterns. NEP currently anticipates adopting this standards update on January 1, 2018 using the modified retrospective method. Accounting for Partial Sales of Nonfinancial Assets - In February 2017, the FASB issued an accounting standards update regarding the accounting for partial sales of nonfinancial assets. NEP anticipates adopting the standards update on January 1, 2018, concurrent with the FASB's new revenue recognition standard. The standards update may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as an adjustment to retained earnings as of the date of initial application. NEP is currently evaluating the effect the adoption of this standards update will have on its consolidated financial statements. Property, Plant and Equipment - net - NEP reviews the estimated useful lives of its fixed assets on an ongoing basis. NEP's most recent review indicated that the actual lives of certain equipment at its wind plants are expected to be longer than previously estimated for depreciation purposes. As a result, effective January 1, 2017, NEP changed the estimated useful lives of certain wind plant equipment from 30 years to 35 years to better reflect the period during which these assets are expected to remain in service. This change increased net income attributable to NEP by approximately $1 million and increased basic and diluted earnings per unit attributable to NEP by approximately $0.02 for the three months ended March 31, 2017. For the year ended December 31, 2017, the change is expected to increase net income attributable to NEP by approximately $4 million . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities and other fair value measurements on a recurring basis | NEP’s financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 22 $ — $ 22 $ 66 $ — $ 66 Restricted cash equivalents 32 — 32 29 — 29 Interest rate contracts — 14 14 — 15 15 Foreign currency contracts — 1 1 — 1 1 Total assets $ 54 $ 15 $ 69 $ 95 $ 16 $ 111 Liabilities: Interest rate contracts $ — $ 41 $ 41 $ — $ 44 $ 44 Total liabilities $ — $ 41 $ 41 $ — $ 44 $ 44 |
Schedule of other financial instrument, carrying amounts and estimated fair values | The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows: March 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (millions) Long-term debt, including current maturities (a) $ 3,768 $ 3,895 $ 3,586 $ 3,680 ____________________ (a) As of March 31, 2017 and December 31, 2016, approximately $2,995 million and $2,808 million , respectively, of the fair value is estimated using a market approach based on quoted market prices for the same or similar issues (Level 2); the balance is estimated using an income approach utilizing a discounted cash flow valuation technique, considering the current credit profile of the debtor (Level 3). |
Derivative Instruments and He22
Derivative Instruments and Hedging Activity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 | Fair Value of Derivative Instruments - The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at March 31, 2017 and December 31, 2016 , as required by disclosure rules, as well as the location of the net derivative positions, based on the expected timing of future payments, on the condensed consolidated balance sheets. March 31, 2017 Gross Basis Net Basis Assets Liabilities Assets Liabilities (millions) Interest rate contracts $ 14 $ 41 $ 16 $ 43 Foreign currency contracts 1 — 1 — Total fair values $ 15 $ 41 $ 17 $ 43 Net fair value by balance sheet line item: Other current assets $ 2 Other non-current assets 15 Current derivative liabilities $ 17 Other non-current liabilities 26 Total derivatives $ 17 $ 43 December 31, 2016 Gross Basis Net Basis Assets Liabilities Assets Liabilities (millions) Interest rate contracts $ 15 $ 44 $ 17 $ 46 Foreign currency contracts 1 — 1 — Total fair values $ 16 $ 44 $ 18 $ 46 Net fair value by balance sheet line item: Other current assets $ 1 Other non-current assets 17 Current derivative liabilities $ 18 Other non-current liabilities 28 Total derivatives $ 18 $ 46 |
Schedule of gains (losses) related to interest rate contracts | Losses related to NEP's interest rate contracts are recorded in the condensed consolidated financial statements as follows: Three Months Ended March 31, 2017 2016 (millions) Interest rate contracts: Losses reclassified from AOCI to interest expense $ (3 ) $ (1 ) Losses recognized in interest expense $ (2 ) $ (44 ) |
Capitalization (Tables)
Capitalization (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Significant long-term debt issuances and borrowings by subsidiaries of NEP during the three months ended March 31, 2017 were as follows: Date Issued Debt Issuances/Borrowings Interest Rate Principal Amount Maturity Date (millions) February 2017 Senior secured revolving credit facility Variable (a) $ 10 2019 March 2017 Senior secured term loans Variable (a) $ 200 2018 - 2019 ———————————— (a) Variable rate is based on an underlying index plus a margin. |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) Net Unrealized Net Unrealized Other Comprehensive Income (Loss) Related to Equity Method Investee Total (millions) Three months ended March 31, 2017 Balances, December 31, 2016 $ (4 ) $ (105 ) $ (16 ) $ (125 ) Amounts reclassified from AOCI to interest expense 2 — — 2 Other comprehensive income related to equity method investee — — 1 1 Net other comprehensive income 2 — 1 3 Balances, March 31, 2017 $ (2 ) $ (105 ) $ (15 ) $ (122 ) AOCI attributable to noncontrolling interest $ (3 ) $ (101 ) $ (16 ) $ (120 ) AOCI attributable to NEP $ 1 $ (4 ) $ 1 $ (2 ) Accumulated Other Comprehensive Loss Net Unrealized Net Unrealized Other Comprehensive Loss Related to Equity Method Investee Total (millions) Three months ended March 31, 2016 Balances, December 31, 2015 $ (11 ) $ (108 ) $ (18 ) $ (137 ) Amounts reclassified from AOCI to interest expense 1 — — 1 Net unrealized gains on foreign currency translation — 6 — 6 Other comprehensive loss related to equity method investee — — (1 ) (1 ) Net other comprehensive income (loss) 1 6 (1 ) 6 Balances, March 31, 2016 $ (10 ) $ (102 ) $ (19 ) $ (131 ) AOCI attributable to noncontrolling interest $ (10 ) $ (97 ) $ (19 ) $ (126 ) AOCI attributable to NEP $ — $ (5 ) $ — $ (5 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rental commitments under land use agreements | The total minimum non-cancelable rental commitments at March 31, 2017 under these land use agreements are as follows: Land Use (millions) Remainder of 2017 $ 7 2018 10 2019 10 2020 10 2021 10 Thereafter 337 Total minimum land use payments $ 384 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - Subsidiaries of NEER [Member] - Golden West Wind Holdings, LLC [Member] - Subsequent Event [Member] $ in Millions | Apr. 20, 2017USD ($)MW |
Business Acquisition [Line Items] | |
Renewable energy assets, power capacity (megawatts) | MW | 249 |
Consideration transferred | $ 238 |
Liabilities assumed in consideration transfer | $ 184 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 16.00% | 14.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash equivalents | $ 22 | $ 66 |
Restricted cash equivalents | 32 | 29 |
Interest rate contracts | 14 | 15 |
Foreign currency contracts | 1 | 1 |
Total assets | 69 | 111 |
Liabilities: | ||
Interest rate contracts | 41 | 44 |
Total liabilities | 41 | 44 |
Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 22 | 66 |
Restricted cash equivalents | 32 | 29 |
Interest rate contracts | 0 | 0 |
Foreign currency contracts | 0 | 0 |
Total assets | 54 | 95 |
Liabilities: | ||
Interest rate contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
Interest rate contracts | 14 | 15 |
Foreign currency contracts | 1 | 1 |
Total assets | 15 | 16 |
Liabilities: | ||
Interest rate contracts | 41 | 44 |
Total liabilities | $ 41 | $ 44 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 3,768 | $ 3,586 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 3,895 | $ 3,680 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Fair Value [Member] - Level 2 [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Long-term debt, including current maturities | $ 3,895 | $ 3,680 |
Market Approach [Member] | ||
Business Acquisition [Line Items] | ||
Long-term debt, including current maturities | $ 2,995 | $ 2,808 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activity - Additional Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 2,113 | $ 2,119 | |
Net losses included in AOCI expected to be reclassified into interest expense within the next 12 months | 7 | ||
Foreign Currency Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | 55 | $ 46 | |
Gains (losses) related to foreign currency contract | $ 1 | $ 3 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activity - Fair Value of Derivative Instruments Included in Balance Sheets (Details) - Cash Flow Hedges [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | $ 17 | $ 18 |
Fair value of derivative instruments, liabilities | 43 | 46 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 2 | 1 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 15 | 17 |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, liabilities | 26 | 28 |
Current Derivative Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, liabilities | 17 | 18 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 16 | 17 |
Fair value of derivative instruments, liabilities | 43 | 46 |
Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 1 | 1 |
Fair value of derivative instruments, liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 15 | 16 |
Fair value of derivative instruments, liabilities | 41 | 44 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 14 | 15 |
Fair value of derivative instruments, liabilities | 41 | 44 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 1 | 1 |
Fair value of derivative instruments, liabilities | $ 0 | $ 0 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activity - Gains (Losses) Related to Cash Flow Hedges (Details) - Interest Rate Contract [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses reclassified from AOCI to interest expense | $ (3) | $ (1) |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses recognized in interest expense | $ (2) | $ (44) |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | Apr. 30, 2015equity_investmentshares | Mar. 31, 2017USD ($)variable_interest_entity | Dec. 31, 2016USD ($) | Oct. 28, 2016MW |
Variable Interest Entity [Line Items] | ||||
Number of entities consolidated | variable_interest_entity | 4 | |||
Property, plant and equipment - net | $ 5,029 | $ 5,051 | ||
Deferral related to differential membership interests | $ 867 | 877 | ||
NEP OpCo [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Limited partner interest percentage | 34.80% | |||
Noncontrolling limited partner interest percentage | 65.20% | |||
NextEra Energy Operating Partners, LP [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Ownership interests percentage | 50.00% | |||
Class B Units, Series 1 [Member] | NextEra Energy Partners, LP [Member] | NextEra Energy Operating Partners, LP [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Number of units issued (in units) | shares | 1,000,000 | |||
Class B Units, Series 2 [Member] | NextEra Energy Partners, LP [Member] | NextEra Energy Operating Partners, LP [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Number of units issued (in units) | shares | 1,000,000 | |||
Palo Duro WInd Project Holdings, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Property, plant and equipment - net | $ 1,634 | 1,647 | ||
Deferral related to differential membership interests | $ 914 | $ 929 | ||
Desert Sunlight Investment Holdings, LLC [Member] | Subsidiaries [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Ownership interests percentage | 24.00% | |||
Renewable energy assets, power capacity (megawatts) | MW | 550 | |||
Adelanto I, Adelanto II and McCoy [Member] | Subsidiaries [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Number of investments | equity_investment | 3 | |||
Economic rights percentage | 100.00% |
Capitalization (Details)
Capitalization (Details) | Mar. 31, 2017USD ($) |
Revolving Credit Facility [Member] | Senior Secured Revolving Credit Facility Due 2019 [Member] | |
Line of Credit Facility [Line Items] | |
Principal Amount | $ 10,000,000 |
Term Loan [Member] | Senior Secured Term Loan Due 2019 [Member] | |
Line of Credit Facility [Line Items] | |
Principal Amount | $ 200,000,000 |
Capitalization - Additional Inf
Capitalization - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2017 | Dec. 31, 2016 |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Amount debt reserve underfunded | $ 2 | |
Subsequent Event [Member] | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Distribution per common unit payable (in dollars per share) | $ 0.365 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ (125) | $ (137) | ||
Other comprehensive income (loss) before reclassification | 6 | |||
Amounts reclassified from AOCI to interest expense | 2 | 1 | ||
Other comprehensive income (loss) related to equity method investee | 1 | (1) | [1] | |
Total other comprehensive income, net of tax | 3 | 6 | [1],[2] | |
Balance, end of period | (122) | (131) | ||
AOCI attributable to noncontrolling interest | (120) | (126) | ||
AOCI attributable to NextEra Energy Partners | (2) | (5) | $ (3) | |
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (4) | (11) | ||
Other comprehensive income (loss) before reclassification | 0 | |||
Amounts reclassified from AOCI to interest expense | 2 | 1 | ||
Other comprehensive income (loss) related to equity method investee | 0 | 0 | ||
Total other comprehensive income, net of tax | 2 | 1 | ||
Balance, end of period | (2) | (10) | ||
AOCI attributable to noncontrolling interest | (3) | (10) | ||
AOCI attributable to NextEra Energy Partners | 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 | (105) | (108) | ||
Other comprehensive income (loss) before reclassification | 6 | |||
Amounts reclassified from AOCI to interest expense | 0 | 0 | ||
Other comprehensive income (loss) related to equity method investee | 0 | 0 | ||
Total other comprehensive income, net of tax | 0 | 6 | ||
Balance, end of period | (105) | (102) | ||
AOCI attributable to noncontrolling interest | (101) | (97) | ||
AOCI attributable to NextEra Energy Partners | (4) | (5) | ||
Other Comprehensive Income (Loss) Related to Equity Method Investee [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (16) | (18) | ||
Other comprehensive income (loss) before reclassification | 0 | |||
Amounts reclassified from AOCI to interest expense | 0 | 0 | ||
Other comprehensive income (loss) related to equity method investee | 1 | (1) | ||
Total other comprehensive income, net of tax | 1 | (1) | ||
Balance, end of period | (15) | (19) | ||
AOCI attributable to noncontrolling interest | (16) | (19) | ||
AOCI attributable to NextEra Energy Partners | $ 1 | $ 0 | ||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. | |||
[2] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 99 | $ 67 | |
Revenue from related parties | 5 | $ 4 | |
Transportation and Fuel Management Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 5 | ||
NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 16 | 7 | |
NEER [Member] | Cash Sweep and Credit Support Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense | 1 | 1 | |
Due from related parties | $ 97 | $ 65 | |
Subsidiaries of NEER [Member] | Transportation and Fuel Management Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 4 | ||
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 | ||
Management fee, additional payment threshold, minimum EBITDA | 4 | ||
NEER [Member] | Guarantees [Member] | |||
Related Party Transaction [Line Items] | |||
Related party obligations | 77 | ||
NextEra Energy Capital Holdings [Member] | Guarantees and Letters of Credit [Member] | |||
Related Party Transaction [Line Items] | |||
Total amount of letters of credit | $ 701 |
Summary of Significant Accoun39
Summary of Significant Accounting and Reporting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Net income attributable to NEP | $ 12 | $ 5 | |||
Earnings per common unit attributable to NextEra Energy Partners, LP - basic and assuming dilution (in dollars per share) | $ 0.22 | $ 0.14 | |||
Service Life [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 35 years | 30 years | |||
Net income attributable to NEP | $ 1 | ||||
Earnings per common unit attributable to NextEra Energy Partners, LP - basic and assuming dilution (in dollars per share) | $ 0.02 | ||||
Scenario, Forecast [Member] | Service Life [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Net income attributable to NEP | $ 4 | ||||
[1] | Prior-period financial information has been retrospectively adjusted as discussed in Note 1. |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)project | Mar. 31, 2016USD ($) | |
Operating Leased Assets [Line Items] | ||
Lease expense | $ 6 | $ 5 |
Payments for acquisition holdback | 200 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remainder of 2017 | 7 | |
2,018 | 10 | |
2,019 | 10 | |
2,020 | 10 | |
2,021 | 10 | |
Thereafter | 337 | |
Total minimum land use payments | 384 | |
Genesis [Member] | Surety Bond [Member] | ||
Operating Leased Assets [Line Items] | ||
Surety bond | 23 | |
Development, Engineering and Construction Commitments [Member] | ||
Operating Leased Assets [Line Items] | ||
Purchases made under commitment contracts | 4 | |
Remaining commitments under contracts | $ 10 | |
Minimum Required Domestic Content Level [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of projects | project | 2 | |
Minimum MRDCL for two projects (as a percent) | 25.00% | |
Minimum MRDCL for two Canadian FIT contracts (as a percent) | 50.00% | |
MRDCL supply period | 7 years |
Commitments and Contingencies41
Commitments and Contingencies - Letters of Credit (Details) - Genesis [Member] - Standby Letters of Credit [Member] $ in Millions | Mar. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 119 |
Credit facility, amount outstanding | $ 93 |