Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-36518 | ||
Entity Registrant Name | NEXTERA ENERGY PARTNERS, LP | ||
Entity Tax Identification Number | 30-0818558 | ||
Entity Address, Address Line One | 700 Universe Boulevard | ||
Entity Address, City or Town | Juno Beach | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33408 | ||
City Area Code | 561 | ||
Local Phone Number | 694-4000 | ||
Entity Incorporation, State or Country Code | DE | ||
Title of 12(b) Security | Common units | ||
Trading Symbol | NEP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,749,053,532 | ||
Entity Common Stock, Shares Outstanding (in shares) | 83,872,983 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001603145 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of NextEra Energy Partners, LP's Proxy Statement for the 2022 Annual Meeting of Unitholders are incorporated by reference in Part III hereof. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Boca Raton, Florida |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
OPERATING REVENUES | ||||
Renewable energy sales | $ 720,000 | $ 703,000 | $ 645,000 | |
Texas pipelines service revenues | 262,000 | 214,000 | 210,000 | |
Total operating revenues(a) | [1] | 982,000 | 917,000 | 855,000 |
OPERATING EXPENSES | ||||
Operations and maintenance(b) | [2] | 419,000 | 363,000 | 336,000 |
Depreciation and amortization | 288,000 | 271,000 | 259,000 | |
Taxes other than income taxes and other | 41,000 | 30,000 | 27,000 | |
Total operating expenses – net | 748,000 | 664,000 | 622,000 | |
OPERATING INCOME | 234,000 | 253,000 | 233,000 | |
OTHER INCOME (DEDUCTIONS) | ||||
Interest expense | 47,000 | (620,000) | (702,000) | |
Equity in earnings of equity method investees | 160,000 | 108,000 | 38,000 | |
Equity in earnings (losses) of non-economic ownership interests | 27,000 | (3,000) | (4,000) | |
Other Nonoperating Income (Expense) | 4,000 | 5,000 | 5,000 | |
Total other income (deductions) – net | 238,000 | (510,000) | (663,000) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 472,000 | (257,000) | (430,000) | |
INCOME TAX EXPENSE (BENEFIT) | 48,000 | (19,000) | (26,000) | |
NET INCOME (LOSS) | 424,000 | (238,000) | (404,000) | |
NET INCOME ATTRIBUTABLE TO PREFERRED DISTRIBUTIONS | 0 | (5,000) | (17,000) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (287,000) | 188,000 | 333,000 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 137,000 | $ (55,000) | $ (88,000) | |
Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - assuming dilution (usd per share) | $ 1.77 | $ (0.81) | $ (1.51) | |
Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - assuming dilution (usd per share) | $ 1.77 | $ (0.81) | $ (1.51) | |
[1] | Includes related party revenues of approximately $42 million, $16 million and $8 million for 2021, 2020 and 2019, respectively. | |||
[2] | Includes operations and maintenance (O&M) expenses related to renewable energy projects of approximately $207 million, $201 million and $182 million and O&M expenses related to the Texas pipelines of $47 million, $40 million and $47 million for 2021, 2020 and 2019, respectively. Total O&M expenses presented includes related party amounts of approximately $214 million, $146 million and $116 million for 2021, 2020 and 2019, respectively. |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Related party revenues | $ 42 | $ 16 | $ 8 |
Operations and maintenance related to renewable energy projects | 207 | 201 | 182 |
Operations and maintenance related to Texas pipelines | 47 | 40 | 47 |
Operations and maintenance related party | $ 214 | $ 146 | $ 116 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 424 | $ (238) | $ (404) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Reclassification from accumulated other comprehensive income (loss) to net income (net of $0, $0, and $0 tax benefit, respectively) | 0 | 0 | (6) |
Other comprehensive income related to equity method investee (net of $0 tax benefit, $0 tax benefit and $0 tax expense, respectively) | 2 | 2 | 2 |
Other Comprehensive Income (Loss), Net of Tax, Total | 2 | 2 | (4) |
COMPREHENSIVE INCOME (LOSS) | 426 | (236) | (408) |
Comprehensive income attributable to preferred distributions | 0 | (5) | (17) |
Comprehensive loss (income) attributable to noncontrolling interests | (290) | 186 | 335 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 136 | $ (55) | $ (90) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification from accumulated other comprehensive loss to net income, tax expense | $ 0 | $ 0 | $ 0 |
Equity method investee, tax | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 147 | $ 108 |
Accounts receivable | 112 | 83 |
Other receivables | 24 | 155 |
Due from related parties | 1,061 | 28 |
Inventory | 41 | 24 |
Other | 25 | 16 |
Total current assets | 1,410 | 414 |
Other assets: | ||
Property, plant and equipment – net | 11,417 | 7,163 |
Goodwill | 891 | 609 |
Investments in equity method investees | 1,896 | 1,814 |
Deferred income taxes | 322 | 249 |
Other | 272 | 131 |
Total other assets | 17,566 | 12,148 |
TOTAL ASSETS | 18,976 | 12,562 |
Current liabilities: | ||
Accounts payable and accrued expenses | 982 | 143 |
Due to related parties | 104 | 66 |
Current portion of long-term debt | 33 | 12 |
Accrued interest | 26 | 25 |
Derivatives | 26 | 20 |
Accrued property taxes | 25 | 22 |
Other | 65 | 62 |
Total current liabilities | 1,261 | 350 |
Other liabilities and deferred credits: | ||
Long-term debt | 5,294 | 3,376 |
Asset retirement obligation | 243 | 144 |
Derivatives | 595 | 782 |
Due to related parties | 41 | 33 |
Other | 383 | 170 |
Total other liabilities and deferred credits | 6,556 | 4,505 |
TOTAL LIABILITIES | 7,817 | 4,855 |
COMMITMENTS AND CONTINGENCIES | ||
REDEEMABLE NONCONTROLLING INTERESTS | 321 | 0 |
EQUITY | ||
Common units (83.9 and 75.9 units issued and outstanding, respectively) | 2,985 | 2,362 |
Accumulated other comprehensive loss | (8) | (8) |
Noncontrolling interests | 7,861 | 5,353 |
TOTAL EQUITY | 10,838 | 7,707 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | 18,976 | 12,562 |
Power Purchase Agreements [Member] | ||
Other assets: | ||
Intangible assets | 2,175 | 1,572 |
Customer Relationships [Member] | ||
Other assets: | ||
Intangible assets | $ 593 | $ 610 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Units Issued | 83,900,000 | 75,900,000 |
Common Units Outstanding | 83,900,000 | 75,900,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 424 | $ (238) | $ (404) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 288 | 271 | 259 |
Intangible amortization – PPAs | 117 | 103 | 72 |
Change in value of derivative contracts | (189) | 384 | 323 |
Deferred income taxes | 46 | (26) | (26) |
Equity in earnings of equity method investees, net of distributions received | 21 | 85 | (23) |
Equity in losses (earnings) of non-economic ownership interests, net of distributions received | (21) | 3 | 4 |
Costs related to retirement of debt – net | 0 | 67 | 153 |
Other – net | 16 | 15 | 12 |
Changes in operating assets and liabilities: | |||
Current assets | (6) | 6 | (17) |
Noncurrent assets | (7) | (4) | (1) |
Current liabilities | (10) | (1) | (6) |
Noncurrent liabilities | (2) | 0 | 0 |
Net cash provided by operating activities | 677 | 665 | 346 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisitions of membership interests in subsidiaries – net | (2,352) | (378) | (2,322) |
Capital expenditures and other investments | (113) | (334) | (93) |
Proceeds from CITCs | 75 | 0 | 0 |
Payments from (to) related parties under CSCS agreement – net | (47) | 2 | 54 |
Distributions from equity method investee | 1 | 8 | 0 |
Distributions from non-economic ownership interests | 90 | 0 | 0 |
Other | 45 | 21 | 12 |
Net cash used in investing activities | (2,301) | (681) | (2,349) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of common units – net | 50 | 2 | 2 |
Issuances of long-term debt, including premiums and discounts | 2,880 | 695 | 3,380 |
Retirements of long-term debt | (1,159) | (1,166) | (2,792) |
Debt issuance costs | (12) | (1) | (48) |
Capped call settlement | 0 | 30 | 0 |
Capped call transaction | (31) | (63) | 0 |
Partner contributions | 2 | 9 | 14 |
Partner distributions | (619) | (442) | (362) |
Preferred unit distributions | 0 | (7) | (21) |
Proceeds on sale of Class B noncontrolling interests – net | 893 | 750 | 1,788 |
Payments to Class B noncontrolling interests investors | (80) | (45) | (23) |
Buyout of Class B noncontrolling interest investors | (265) | 0 | 0 |
Proceeds on sale of differential membership interests | 48 | 179 | 0 |
Proceeds from differential membership investors | 74 | 94 | 66 |
Payments to differential membership investors | (35) | (30) | (30) |
Change in amounts due to related parties | (13) | (3) | (5) |
Payment of CITC obligation to third party | (65) | 0 | 0 |
Other | (5) | (6) | 0 |
Net cash provided by (used in) financing activities | 1,663 | (4) | 1,969 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 39 | (20) | (34) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – BEGINNING OF YEAR | 112 | 132 | 166 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF YEAR | 151 | 112 | 132 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest, net of amounts capitalized | 126 | 163 | 162 |
Cash paid for income taxes | 2 | 6 | 1 |
Change in noncash investments in equity method investees – net | 127 | 12 | 12 |
Accrued property additions | 971 | 32 | 10 |
Conversion of 2017 convertible notes to common units | $ 0 | $ 300 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Noncontrolling Class B Interests [Member] | Preferred Units [Member] | Preferred Units, Amount [Member] | Capital Units [Member] | Capital Units [Member]Noncontrolling Class B Interests [Member] | [3] | Capital Units, Amount [Member] | Capital Units, Amount [Member]Cumulative Effect, Period of Adoption, Adjustment | Capital Units, Amount [Member]Noncontrolling Class B Interests [Member] | [3] | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Non-controlling InterestsCumulative Effect, Period of Adoption, Adjustment | Non-controlling InterestsNoncontrolling Class B Interests [Member] | Redeemable Non-controlling Interests | |||
Beginning balance, units outstanding at Dec. 31, 2018 | 14,000,000 | 56,100,000 | ||||||||||||||||||
Beginning Balance at Dec. 31, 2018 | $ 5,538 | $ 548 | $ 1,804 | $ (6) | $ 3,192 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||
Issuance of units, in units | [1] | 9,300,000 | (9,400,000) | |||||||||||||||||
Issuance of units - net | [1] | 42 | (365) | 407 | ||||||||||||||||
Acquisition of subsidiary with noncontrolling ownership interests | 462 | 462 | ||||||||||||||||||
Related party note receivable | 2 | 2 | ||||||||||||||||||
NET INCOME (LOSS) | (404) | 17 | (88) | (333) | ||||||||||||||||
Other comprehensive income | (4) | (2) | (2) | |||||||||||||||||
Related party contributions | 23 | 23 | ||||||||||||||||||
Related party distributions | (249) | (249) | ||||||||||||||||||
Changes in non-economic ownership interests | (12) | (12) | ||||||||||||||||||
Other differential membership investment activity | 36 | 36 | ||||||||||||||||||
Sale of Class B noncontrolling interest – net | 1,786 | (2) | 1,788 | |||||||||||||||||
Payments to Class B noncontrolling interest investors | $ (23) | $ (23) | ||||||||||||||||||
Distributions to unitholders | [2] | (132) | (17) | (115) | ||||||||||||||||
Other – net | 1 | 2 | (1) | |||||||||||||||||
Ending balance, units outstanding at Dec. 31, 2019 | 4,700,000 | 65,500,000 | ||||||||||||||||||
Ending Balance at Dec. 31, 2019 | 7,066 | 183 | 2,008 | (8) | 4,883 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||
Issuance of units, in units | [1] | (4,700,000) | (10,400,000) | |||||||||||||||||
Issuance of units - net | [1] | 360 | (183) | 543 | ||||||||||||||||
Capped call settlement, including deferred taxes | 33 | 33 | ||||||||||||||||||
Capped call transaction | (63) | (63) | ||||||||||||||||||
Related party note receivable | 2 | 2 | ||||||||||||||||||
NET INCOME (LOSS) | (238) | 5 | (55) | (188) | ||||||||||||||||
Other comprehensive income | 2 | 2 | ||||||||||||||||||
Related party contributions | 7 | 7 | ||||||||||||||||||
Related party distributions | (290) | (290) | ||||||||||||||||||
Changes in non-economic ownership interests | (12) | (12) | ||||||||||||||||||
Sale of differential membership interest | 176 | (3) | 179 | |||||||||||||||||
Other differential membership investment activity | 64 | 64 | ||||||||||||||||||
Sale of Class B noncontrolling interest – net | 746 | (4) | 750 | |||||||||||||||||
Payments to Class B noncontrolling interest investors | (45) | (45) | ||||||||||||||||||
Distributions to unitholders | [2] | (159) | (5) | (154) | ||||||||||||||||
Conversion option of 2020 convertible notes, including deferred taxes | 57 | 57 | ||||||||||||||||||
Other – net | $ 1 | 0 | 1 | |||||||||||||||||
Ending balance, units outstanding at Dec. 31, 2020 | 75,900,000 | 0 | 75,900,000 | |||||||||||||||||
Ending Balance at Dec. 31, 2020 | $ 7,707 | $ (56) | 0 | 2,362 | $ (57) | (8) | 5,353 | $ 1 | $ 0 | |||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||
Issuance of units, in units | 0 | (700,000) | ||||||||||||||||||
Issuance of units - net | 56 | 0 | 56 | |||||||||||||||||
Acquisition of subsidiary with noncontrolling ownership interests | 2,494 | 2,494 | 321 | |||||||||||||||||
Capped call transaction | (31) | (31) | ||||||||||||||||||
Related party note receivable | 2 | 2 | ||||||||||||||||||
NET INCOME (LOSS) | 424 | 137 | 287 | |||||||||||||||||
Other comprehensive income | 2 | 2 | ||||||||||||||||||
Related party distributions | (424) | (424) | ||||||||||||||||||
Changes in non-economic ownership interests | 127 | 127 | ||||||||||||||||||
Sale of differential membership interest | 48 | 48 | ||||||||||||||||||
Other differential membership investment activity | 39 | 39 | ||||||||||||||||||
Sale of Class B noncontrolling interest – net | 890 | (3) | 893 | |||||||||||||||||
Payments to Class B noncontrolling interest investors | (80) | (80) | ||||||||||||||||||
Distributions to unitholders | [2] | (198) | (198) | |||||||||||||||||
Exercise of Class B noncontrolling interest buyout right, in units | 7,300,000 | 7,300,000 | ||||||||||||||||||
Exercise of Class B noncontrolling interest buyout right | (879) | $ (160) | [3] | $ 719 | $ (879) | [3] | ||||||||||||||
Other – net | $ (2) | (2) | ||||||||||||||||||
Ending balance, units outstanding at Dec. 31, 2021 | 83,900,000 | 0 | 83,900,000 | |||||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 10,838 | $ 0 | $ 2,985 | $ (8) | $ 7,861 | $ 321 | ||||||||||||||
[1] | In 2020, NEP issued 4.7 million NEP common units upon the conversion of preferred units on a one-for-one basis and issued approximately 5.7 million NEP common units upon the conversion of $300 million of convertible notes (see Note 13 – Preferred Units and Note 12). NEP recognized a deferred tax asset of approximately $59 million related to the issuance of NEP common units. In 2019, NEP converted approximately 9.3 million Series A convertible preferred units into NEP common units on a one-for-one basis and recognized a deferred tax asset of approximately $39 million related to the issuance of NEP common units. | |||||||||||||||||||
[2] | Distributions per common unit were $2.6000, $2.2625 and $1.9675 for the years ended December 31, 2021, 2020 and 2019, respectively. | |||||||||||||||||||
[3] | Reflects the issuance of approximately 7.3 million NEP common units and recognition of a $105 million deferred tax asset in connection with the exercise of the Class B noncontrolling interest buyout right discussed in Note 13 - Class B Noncontrolling Interests. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parentheticals) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |||
Conversion of 2017 convertible notes to common units | $ 0 | $ 300 | $ 0 | ||
Issuance of units - net | 56 | $ 360 | [1] | $ 42 | [1] |
Deferred tax asset related to exercise of buyout right | $ 105 | ||||
Common Unit [Member] | |||||
Distributions per unit (in dollars per unit) | $ / shares | $ 2.6000 | $ 2.2625 | $ 1.9675 | ||
Series A Convertible Preferred Units [Member] | |||||
Conversion of Stock, Shares Converted | shares | 4,673,857 | 9,300,000 | |||
Conversion Of Stock, Conversion Ratio | 1 | 1 | |||
Limited Partner [Member] | |||||
Issuance of units - net | $ 56 | $ 543 | [1] | $ 407 | [1] |
Limited Partner [Member] | Deferred Tax Asset [Member] | |||||
Issuance of units - net | $ 59 | $ 39 | |||
Capital Units [Member] | |||||
Exercise of Class B noncontrolling interest buyout right, in units | shares | 7,300,000 | ||||
[1] | In 2020, NEP issued 4.7 million NEP common units upon the conversion of preferred units on a one-for-one basis and issued approximately 5.7 million NEP common units upon the conversion of $300 million of convertible notes (see Note 13 – Preferred Units and Note 12). NEP recognized a deferred tax asset of approximately $59 million related to the issuance of NEP common units. In 2019, NEP converted approximately 9.3 million Series A convertible preferred units into NEP common units on a one-for-one basis and recognized a deferred tax asset of approximately $39 million related to the issuance of NEP common units. |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business NextEra Energy Partners, LP (NEP) was formed as a Delaware limited partnership on March 6, 2014 as an indirect wholly owned subsidiary of NextEra Energy, Inc. (NEE), a Florida corporation. NEP was formed to be a growth-oriented limited partnership that would acquire, manage and own contracted clean energy projects with stable long-term cash flows. On July 1, 2014, NEP completed its initial public offering (IPO). NEP used the proceeds from the IPO to purchase common units of NextEra Energy Operating Partners, LP (NEP OpCo) from NextEra Energy Equity Partners, LP (NEE Equity), a Delaware limited partnership and an indirect wholly owned subsidiary of NEE, and to purchase NEP OpCo common units from NEP OpCo. NEP OpCo is a limited partnership with a general partner and limited partners. NEP consolidates the results of NEP OpCo and its subsidiaries because of its controlling interest in the general partner of NEP OpCo. At December 31, 2021, NEP owned an approximately 45.3% limited partner interest in NEP OpCo's common units and NEE Equity owned a noncontrolling 54.7% limited partner interest in NEP OpCo's common units. In connection with the IPO, NEP acquired a portfolio of clean, contracted renewable energy assets including wind and solar energy generating facilities. Subsequent to the IPO, NEP expanded its portfolio through the acquisition of additional interests in wind and solar energy generating facilities primarily from NextEra Energy Resources, LLC (NEER), as well as the 2015 acquisition of interests in seven natural gas pipeline assets located in Texas (Texas pipelines) and the 2019 acquisition of an interest in a natural gas pipeline located in Pennsylvania from third parties. See Note 3. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
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 United States (U.S.), or GAAP. The consolidated financial statements include NEP’s accounts and operations and those of its subsidiaries in which NEP has a controlling interest. All intercompany transactions have been eliminated in consolidation. Certain amounts included in prior years' consolidated financial statements have been reclassified to conform to the current year's presentation. The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Revenue Recognition – R evenue is generated primarily from various non-affiliated parties under long-term power purchase agreements (PPA) and natural gas transportation agreements. 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. See Note 4. In 2021, 2020 and 2019, approximately $141 million, $122 million and $125 million, respectively, of NEP's consolidated revenues were attributable to foreign countries, primarily related to its contract with a Mexican counterparty. Income Taxes – NEP recognizes in income its applicable ownership share of U.S. income taxes due to the disregarded tax status of substantially all of the projects under NEP OpCo. Equity – Equity reflects the financial position of the parties with an ownership interest in the consolidated financial statements. NextEra Energy Partners GP, Inc. has a total equity interest in NEP of $10,000 at December 31, 2021 and 2020. Limited partners' equity in common units at December 31, 2021 and 2020 reflects the investment of NEP common unitholders, changes to net income attributable to NEP, distributions of available cash to common unitholders and other contributions from or distributions to NEP common unitholders. Accumulated other comprehensive loss at December 31, 2021 and 2020 reflects comprehensive income (loss) attributable to NEP. Noncontrolling Interests – Noncontrolling interests represents the portion of net assets in consolidated entities that are not owned by NEP and are reported as a component of equity on NEP’s consolidated balance sheets. At December 31, 2021 , noncontrolling interests on NEP's consolidated balance sheets primarily reflects NEE Equity's 54.7% noncontrolling interest in NEP OpCo, non-affiliated parties' 10% interest in one of the Texas pipelines and 50% interest in the renewable energy projects purchased from NEER in December 2021 (see Note 3), NEER's approximately 50% noncontrolling ownership interest in Silver State, the interests related to differential membership interests discussed below and the Class B noncontrolling ownership interests discussed below. Certain indirect subsidiaries of NEP have sold Class B membership interests in entities that have ownership interests in 32 wind projects and 7 solar projects, including related battery storage facilities, (differential membership interests) to third-party investors. Although the third-party investors own equity interests in the wind and solar projects, NEP retains a controlling interest in the entities as of December 31, 2021 and therefore presents the differential membership interests as noncontrolling interests. NEP, through O&M and administrative services agreements with subsidiaries of NEER, operates and manages the wind and solar projects, and consolidates the entities that directly and indirectly own the wind and solar projects. The third-party investors are allocated earnings, tax attributes and cash flows in accordance with the respective limited liability company agreements. Those economics are allocated primarily to the third-party investors until they receive a targeted return (the flip date) and thereafter to NEP. NEP has the right to call the third-party interests at specified amounts if and when the flip date occurs. Subsidiaries of NEP have sold Class B noncontrolling membership interests in NEP Renewables, LLC (NEP Renewables), NEP Renewables II, LLC (NEP Renewables II), NextEra Energy Partners Pipelines, LLC (NEP Pipelines), South Texas Midstream, LLC (STX Midstream), Genesis Solar Holdings, LLC (Genesis Holdings) and NEP Renewables III, LLC (NEP Renewables III) (collectively, Class B noncontrolling ownership interests). In November 2021, NEP exercised its buyout right for the Class B noncontrolling interests in NEP Renewables. See Note 13 – Class B Noncontrolling Interests. The NEP subsidiaries selling the Class B noncontrolling ownership interests retain controlling interests in the related entities as of December 31, 2021 and therefore NEP presents the Class B noncontrolling ownership interests as noncontrolling interests. For the differential membership interests and Class B noncontrolling ownership interests, NEP has determined the allocation of economics between the controlling party and third-party investor should not follow the respective ownership percentages for each investment but rather the hypothetical liquidation of book value (HLBV) method based on the governing provisions in each respective limited liability company agreement. Under the HLBV method, the amounts of income and loss attributable to the noncontrolling interests reflects changes in the amount the owners would hypothetically receive at each balance sheet date under the respective liquidation provisions, assuming the net assets of these entities were liquidated at the recorded amounts, after taking into account any capital transactions, such as contributions and distributions, between the entities and the owners. At the point in time that the third party, in hypothetical liquidation, would achieve its targeted return, NEP attributes the additional hypothetical proceeds to the differential membership interests based on the call price. For the noncontrolling interests, other than the differential membership interests and the Class B noncontrolling interests, net income (loss) is allocated based on the respective ownership percentages. Thus, the impact of the net income (loss) attributable to the Class B noncontrolling ownership interests and the differential membership interests are allocated to NEE Equity's noncontrolling ownership interest and the net income attributable to NEP based on their respective ownership percentage of NEP OpCo. Distributions related to the noncontrolling interests, other than the differential membership interests and Class B noncontrolling interests, are reflected as partner distributions in NEP's consolidated statements of cash flows. Details of the activity in noncontrolling interests for the years ended December 31, 2021, 2020 and 2019 are below: Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling (millions) Balances, December 31, 2018 $ 751 $ 2,019 $ 342 $ 80 $ 3,192 Sale of Class B noncontrolling interests – net 1,788 — — — 1,788 Acquisition of subsidiary with noncontrolling interests — — 462 — 462 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 112 (257) (184) (4) (333) Other comprehensive loss — — (2) — (2) Related party contributions — — 12 11 23 Related party distributions — — (242) (7) (249) Changes in non-economic ownership interests — — — (12) (12) Differential membership investment contributions, net of distributions — 36 — — 36 Payments to Class B noncontrolling interest investors (23) — — — (23) Other — — (1) — (1) Balances, December 31, 2019 2,628 1,798 389 68 4,883 Sale of Class B noncontrolling interests – net 750 — — — 750 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 217 (282) (127) 4 (188) Other comprehensive income — — 2 — 2 Related party contributions — — — 7 7 Related party distributions — — (281) (9) (290) Changes in non-economic ownership interests — — — (12) (12) Differential membership investment contributions, net of distributions — 64 — — 64 Payments to Class B noncontrolling interest investors (45) — — — (45) Sale of differential membership interest — 179 — — 179 Other — — 1 — 1 Balances, December 31, 2020 3,550 1,759 (14) 58 5,353 Sale of Class B noncontrolling interest – net 893 — — — 893 Acquisition of subsidiaries with noncontrolling interests — 1,618 25 851 2,494 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 298 (313) 269 33 287 Other comprehensive income — — 2 — 2 Related party distributions — — (322) (102) (424) Changes in non-economic ownership interests — — — 127 127 Differential membership investment contributions, net of distributions — 39 — — 39 Payments to Class B noncontrolling interest investors (80) — — — (80) Sale of differential membership interest — 48 — — 48 Exercise of Class B noncontrolling interest buyout right (879) — — — (879) Other 1 (1) — (1) (1) Balances, December 31, 2021 $ 3,783 $ 3,150 $ (38) $ 966 $ 7,861 ____________________ (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interest in Silver State. Redeemable Noncontrolling Interests – Prior to the acquisition in December 2021 from NEER (see Note 3), differential membership interests related to certain of the acquired solar facilities were sold to third party investors. If, subject to certain contingencies, certain events occur that delay or prevent completion of any underlying projects, NEP may be obligated to reacquire all or a portion of the third party investors' interests in these projects for up to approximately $204 million. Additionally, if a solar production tax credit is not enacted by a certain date, NEP may be obligated to return proceeds of approximately $117 million to the third party investors in these projects. Prior to paying any amounts to the third party investors related to these contingencies, NEP would receive the full amount of any such payments from a subsidiary of NEER. As these potential redemptions or return of proceeds are outside of NEP’s control, the balances were classified as redeemable noncontrolling interests on NEP's consolidated balance sheet as of December 31, 2021. These contingencies are expected to be resolved during 2022. Property, Plant and Equipment – net – 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 the estimated useful lives ranging from three Property, plant and equipment – net on NEP's consolidated balance sheets includes construction work in progress which reflects construction materials, other equipment, third-party engineering costs, capitalized interest and other costs directly associated with the development and construction of the various projects. Upon commencement of plant or pipeline operations, costs associated with construction work in progress are transferred to the appropriate category in property, plant and equipment – net. The American Recovery and Reinvestment Act of 2009, as amended, provided for an option to elect a cash grant (convertible investment tax credits) for certain renewable energy property. Convertible investment tax credits (CITCs) are recorded as a reduction in property, plant and equipment – net on NEP's consolidated balance sheets and are amortized as a corresponding reduction to depreciation expense over the estimated life of the related asset. At December 31, 2021 and 2020 , CITCs, net of amortization, were approximately $448 million and $400 million, respectively. At December 31, 2020, other receivables on NEP's consolidated balance sheets included a CITC receivable of approximately $124 million associated with one of its solar projects. At December 31, 2020, corresponding liabilities of approximately $100 million and $12 million related to the CITC payments required to be paid to the third party who constructed the project were reflected as accounts payable and accrued expenses and current other liabilities, respectively, and $12 million of CITC payments to be paid to NEER are reflected as current due to related parties on NEP's consolidated balance sheets. During 2021, a settlement agreement related to the CITC receivable was reached and the CITC receivable and related payments to NEER and the third party were paid. Cash and Cash Equivalents – Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. NEP primarily holds such 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 NEP's 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 at December 31, 2021 and 2020. Restricted Cash – At December 31, 2021 and 2020, NEP had approxima tely $4 million and $4 million, respectively, of restricted cash included in current other assets on NEP's consolidated balance sheets. Restricted cash at December 31, 2021 and 2020 is primarily related to collateral deposits from a counterparty. 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. The majority of NEP's counterparties 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. Substantially all amounts due from such counterparties at December 31, 2021 have been collected. During 2021, NEP derived approximately 12% and 14% of its consolidated revenue from its contracts with Pacific Gas and Electric Company and Mex Gas Supply S.L., respectively. Inventories – Spare parts inventories are carried at the lower of weighted-average cost and net realizable value. 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 when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset. The impairment loss to be recognized is the amount by which the carrying value of the asset exceeds the asset's fair value. In most instances, the fair value is determined by discounting estimated future cash flows using an appropriate interest rate. During the years ended December 31, 2021 and 2020, 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 acquisitions 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 – Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually by applying a fair value-based analysis. NEP completed the annual impairment test for goodwill and indefinite-lived intangibles using an assessment date of October 1 and determined, based on the results, that no goodwill impairment charge was required. Intangible Asset – Customer Relationships – At December 31, 2021 and 2020 , NEP's consolidated balance sheets reflect intangible asset – customer relationships related to the acquisition of the Texas pipelines in 2015. Intangible asset – customer relationships are amortized on a straight-line basis over the estimated useful life of approximately 40 years. For each of the years ended December 31, 2021, 2020 and 2019, amortization expense was approximately $17 million and is expected to be approximately $17 million in each of the next five years. Intangible Asset – PPAs – At December 31, 2021 and 2020 , NEP's consolidated balance sheets reflect intangible asset – PPAs primarily related to acquisitions in 2018 and the acquisitions discussed in Note 3. Intangible asset – PPAs are amortized into operating revenues on a straight-line basis over the remaining contract terms of the related PPAs, which approximates the period giving rise to the value. At December 31, 2021 and 2020, accumulated amortization related to the intangible asset – PPAs was approximately $295 million and $177 million, respectively. At December 31, 2021, amortization of the intangible asset – PPAs is expected to be approximately $160 million in each of the next five years. Intangible Liabilities – PPAs - At December 31, 2021, intangible liabilities of approximately $179 million are reflected as noncurrent other liabilities on NEP's consolidated balance sheets. The intangible liabilities relate to the December 2021 acquisition from NEER discussed in Note 3 and will be amortized into operating revenues on a straight-line basis over the remaining contract terms of the PPAs, which approximates the period giving rise to the value. At December 31, 2021, amortization of the intangible liabilities is expected to be approximately $13 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 a liability measured at fair value. 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. Long-term Debt 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 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 liabilities on NEP’s consolidated balance sheets. 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. NEP incurred approximately $12 million and $10 million of debt issuance costs during the year ended December 31, 2021 and 2020, respectively. The amortization of debt issuance costs totaled approximately $11 million, $11 million and $11 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is included in interest expense in NEP’s consolidated statements of income (loss). In addition, NEP wrote-off approximately $4 million of debt issuance costs during 2020 due to the retirement of the related debt. See Note 12. 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) under accounting guidance that requires a liability for the fair value of an ARO to 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 (loss). 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 $7 million, $7 million and $6 million in the years ended December 31, 2021, 2020 and 2019, respectively. Additional AROs were established amounting to approximately $101 million and $38 million in the years ended December 31, 2021 and 2019, respectively, related to the acquisitions in those periods (see Note 3) . Investments in Unconsolidated Entities – NEP accounts for the investments in its unconsolidated entities under the equity method. NEP’s share of earnings (losses) in the unconsolidated entities is included in equity in earnings of equity method investees and equity in earnings (losses) of non-economic ownership interests in NEP's consolidated statements of income (loss). NEP records losses of the unconsolidated entities only to the extent of its investment unless there is an obligation to provide further financial support for the investee. All equity in earnings (losses) of the non-economic ownership interests is allocated to net income attributable to noncontrolling interests. See Note 9 and Note 10. NEP evaluates its equity method investments for impairment when events or changes in circumstances indicate that the fair value of the investment is less than the carrying value and the investment may be other-than-temporarily impaired. An impairment loss is required to be recognized if the impairment is deemed to be other than temporary. Investments that are other-than-temporarily impaired are written down to their estimated fair value and cannot subsequently be written back up for increases in estimated fair value. 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 10. Leases – NEP determines if an arrangement is a lease at inception. NEP recognizes a right-of-use (ROU) asset and a lease liability for operating and finance leases by recognizing and measuring leases at the commencement date based on the present value of lease payments over the lease term. For sales-type leases, the book value of the leased asset is removed from the balance sheet and a net investment in sales-type lease is recognized based on fixed payments under the contract and the residual value of the asset being leased. NEP has elected not to apply the recognition requirements to short-term leases and not to separate nonlease components from associated lease components for substantially all classes of underlying assets except for purchase power agreements. ROU assets are included primarily in noncurrent other assets, lease liabilities are included in current and noncurrent other liabilities and net investments in sales-type leases are included in current and noncurrent other assets on NEP's consolidated balance sheets. Operating lease expense is included in O&M expense, interest and amortization expense associated with finance leases are included in interest expense and depreciation and amortization expense, respectively, and interest income associated with sales-type leases is included in operating revenues in NEP’s consolidated statements of income (loss). See Note 11. Reference Rate Reform – In March 2020, the Financial Accounting Standards Board (FASB) issued an accounting standards update which provides certain options to apply GAAP guidance on contract modifications and hedge accounting as companies transition from the London Inter-Bank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. NEP’s contracts that reference LIBOR or other interbank offered rates mainly relate to debt and derivative instruments. The standards update was effective upon issuance and can be applied prospectively through December 31, 2022. As agreements that reference LIBOR or other interbank offered rates as an interest rate benchmark are amended, NEP evaluates whether to apply the options provided by the standards update with regard to eligible contract modifications. Distinguishing Liabilities and Equity – In August 2020, the FASB issued an accounting standards update which updates the accounting guidance for financial instruments with the characteristics of liabilities and equity, including debt with conversion options and other equity-linked instruments such as the $600 million in principal amount of convertible notes issued in December 2020 (2020 convertible notes) (see Note 12). NEP adopted this standard on January 1, 2021 by applying it retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective approach). Upon adoption, NEP reclassified approximately $64 million related to the embedded conversion feature for the 2020 convertible notes from common units equity to long-term debt. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In June 2019, an indirect subsidiary of NEP completed the acquisition from NEER (June 2019 acquisition) of the following: • 100% of the membership interests in Ashtabula Wind II, LLC, a project company that owns a 120 megawatt (MW) wind generation facility located in North Dakota; • 100% of the membership interests in Garden Wind, LLC, a project company that owns a 150 MW wind generation facility (Story County II) located in Iowa; • 100% of the membership interests in White Oak Energy Holdings, LLC, which owns 100% of the membership interests of White Oak Energy LLC, which owns a 150 MW wind generation facility located in Illinois; • 100% of the Class C membership interests in Rosmar Holdings, LLC (Rosmar), which represents a 49.99% noncontrolling ownership interest in two solar generation facilities, Marshall and Roswell, with a total combined generating capacity of approximately 132 MW located in Minnesota and New Mexico, respectively; and • 49.99% of the membership interests, representing a controlling ownership interest, in Silver State South Solar, LLC (Silver State), which indirectly owns a 250 MW solar generation facility located in Nevada. NEER retained ownership interests in Rosmar and Silver State and remains the managing member of Rosmar. Thus, NEP's interest in Rosmar is reflected within investments in equity method investees on the consolidated balance sheets. NEER's remaining interest in Silver State is reflected within noncontrolling interests on the consolidated balance sheets (see Note 2 – Noncontrolling Interests). The purchase price included approximately $1,020 million in cash consideration, plus working capital of $12 million. Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair value. All fair value measurements of assets acquired and liabilities assumed were based on significant estimates and assumptions, including Level 3 (unobservable) inputs, which require judgment. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. The following table summarizes the final amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the June 2019 acquisition: (millions) Total consideration transferred $ 1,032 Identifiable assets acquired and liabilities assumed Cash $ 4 Accounts receivable, other receivables and prepaid expenses 159 Property, plant and equipment – net 350 Intangible assets – PPAs 1,110 Goodwill 25 Other noncurrent assets 133 Accounts payable, accrued expenses and other current liabilities (132) Other noncurrent liabilities (155) Noncontrolling interest (462) Total net identifiable assets, at fair value $ 1,032 In November 2019, Meade Pipeline Investment, LLC (the Meade purchaser), an indirect subsidiary of NEP, acquired all of the ownership interests in Meade Pipeline Co, LLC (Meade), which owns an approximately 39.2% aggregate ownership interest in the Central Penn Line (CPL), a 185-mile natural gas pipeline that operates in Pennsylvania, and a 40% ownership interest in an expansion project of the gas pipeline. The purchase price included cash consideration of $1,280 million. NEP recorded an investment in equity method investee of approximately $1,296 million after adjusting for working capital, other closing items and direct acquisition costs. In addition, NEP agreed to fund approximately $90 million of capital expenditures related to the expansion project which was placed in service in the fourth quarter of 2021. NEP's indirect ownership interest in Meade, including Meade's ownership interests in the CPL and the related expansion project, is reflected within investment in equity method investees. See Note 9. In December 2020, a subsidiary of NEP completed the acquisition from NEER (2020 acquisition) of 100% of the membership interests in Wilmot Energy Center, LLC (Wilmot) and 100% of the Class C membership interests in Pine Brooke Class A Holdings, LLC (Pine Brooke Holdings). Wilmot is an approximately 100 MW solar generation facility and 30 MW battery storage facility located in Arizona which entered service in the second quarter of 2021. The Class C membership interests in Pine Brooke Holdings represent an indirect 40% noncontrolling ownership interest in each of: • Soldier Creek Wind, LLC, a project company that owns an approximately 300 MW wind generation facility located in Kansas; • Ponderosa Wind, LLC, a project company that owns an approximately 200 MW wind generation facility located in Oklahoma; • Blue Summit III Wind, LLC, a project company that owns an approximately 200 MW wind generation facility located in Texas; • Saint Solar, LLC, a project company that owns an approximately 100 MW solar generation facility located in Arizona; • Taylor Creek Solar, LLC, a project company that owns an approximately 75 MW solar generation facility located in Florida; • Harmony Florida Solar, LLC, a project company that owns an approximately 75 MW solar generation facility located in Florida; and • Sanford Airport Solar, LLC, a project company that owns an approximately 49 MW solar generation facility located in Maine. The purchase price consisted of cash consideration of approximately $374 million, plus working capital and other adjustments of approximately $4 million. The purchase price was allocated primarily to investment in equity method investees of approximately $223 million, property, plant and equipment – net of $137 million and intangible assets – PPAs – net of $18 million based on the fair value of assets acquired and liabilities assumed. In August 2021, an indirect subsidiary of NEP completed the acquisition (August 2021 acquisition) of 100% of the ownership interests in each of: • Highview Power Holdings, LLC, which indirectly owns a 150 MW wind generation facility located in California; • Brookfield Windstar Holding, LLC, which indirectly owns a 120 MW wind generation facility located in California; • Brookfield Coram Wind Development, LLC, which indirectly owns a 22 MW wind generation facility located in California; and • BAIF Granite Holdings, LLC, which indirectly owns a 99 MW wind generation facility located in New Hampshire. The purchase price included a base purchase price of approximately $733 million, plus closing adjustments primarily related to pre-acquisition debt make whole costs of $55 million and working capital of $27 million, including cash of $18 million. Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair value. All fair value measurements of assets acquired and liabilities assumed were based on significant estimates and assumptions, including Level 3 (unobservable) inputs, which require judgment. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. The excess of the purchase price over the estimated fair value of assets acquired and liabilities assumed was recognized as goodwill at the acquisition date. The goodwill arising from the acquisition results largely from the assets being well-situated in strong markets with long-term renewables demand, providing long-term optionality for the assets. All of the goodwill is expected to be deductible for income tax purposes over a 15 year period. The valuation of the acquired net assets is subject to change as NEP obtains additional information for its estimates during the measurement period. The primary areas of the purchase price allocation that are not yet finalized relate to identifiable intangible assets and residual goodwill. The following table summarizes the preliminary amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the August 2021 acquisition: (millions) Total consideration transferred $ 815 Identifiable assets acquired and liabilities assumed Cash $ 18 Accounts receivable, inventory and prepaid expenses 14 Property, plant and equipment – net 191 Intangible assets – PPAs 432 Goodwill 179 Other noncurrent assets 1 Accounts payable, accrued expenses and other current liabilities (8) Other noncurrent liabilities (12) Total net identifiable assets, at fair value $ 815 In October 2021, an indirect subsidiary of NEP completed the acquisition of ownership interests (October 2021 acquisition) in a portfolio of wind and solar generation facilities with a combined net generating capacity totaling approximately 589 MW from subsidiaries of NEER for a purchase price consisting of cash consideration of approximately $563 million, plus working capital and other adjustments of $22 million. NEP's share of the entities' debt and noncontrolling interests related to differential membership investors was approximately $270 million at the time of closing. The acquisition included the following assets: • 100% of the membership interests in HW CA Holdings, LLC, that indirectly owns an approximately 162 MW wind generation facility located in California; • 100% of the membership interests in Dogwood Wind Holdings, LLC, that indirectly owns two wind generation facilities with a combined total generating capacity of approximately 300 MW located in North Dakota and Missouri; • 100% of the membership interests in Southwest Solar Holdings, LLC, that indirectly owns an approximately 5 MW solar generation facility located in New Mexico; • 33.3% of the membership interests in Shaw Creek Solar Holdings, LLC, that indirectly owns an approximately 75 MW solar generation facility located in South Carolina; • 33.3% of the membership interests in Nutmeg Solar Holdings, LLC, that indirectly owns an approximately 20 MW solar generation facility located in Connecticut; and • 100% of the Class C membership interests (which represents 33.3% of the total ownership interest in the underlying projects) in Solar Holdings Portfolio 12, LLC, that has indirect ownership interests in: ◦ two solar generation facilities with a combined total generating capacity of approximately 40 MW located in California; ◦ the DG Portfolio 2019 portfolio, that indirectly owns multiple distributed solar generation facilities with a combined total generating capacity of approximately 217 MW located in various states across the U.S.; and ◦ the DG Waipio portfolio, that indirectly owns multiple distributed solar generation facilities with a combined total generating capacity of approximately 13 MW located in Hawaii. Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed, including noncontrolling interests, based on their estimated fair value. All fair value measurements of assets acquired and liabilities assumed were based on significant estimates and assumptions, including Level 3 (unobservable) inputs, which require judgment. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. The excess of the purchase price over the estimated fair value of assets acquired and liabilities assumed was recognized as goodwill at the acquisition date. The goodwill arising from the acquisition results largely from the assets being well-situated in strong markets with long-term renewables demand, providing long-term optionality for the assets. All of the goodwill is expected to be deductible for income tax purposes over a 15 year period. The valuation of the acquired net assets is subject to change as NEP obtains additional information for its estimates during the measurement period. The primary areas of the purchase price allocation that are not yet finalized relate to identifiable intangible assets and residual goodwill. The following table summarizes the preliminary amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the October 2021 acquisition: (millions) Total consideration transferred $ 585 Identifiable assets acquired and liabilities assumed Cash $ 4 Accounts receivable, inventory and prepaid expenses 11 Property, plant and equipment – net 560 Intangible assets – PPAs 42 Goodwill 33 Investments in equity method investees 66 Other noncurrent assets 19 Accounts payable, accrued expenses and other current liabilities (8) Other noncurrent liabilities (20) Noncontrolling interests (122) Total net identifiable assets, at fair value $ 585 In December 2021, an indirect subsidiary of NEP (the purchaser) completed the asset acquisition of 100% of the Class A membership interests in Star Moon Holdings, LLC (Star Moon Holdings) for a total consideration of approximately $849 million, plus working capital and other adjustments of approximately $9 million (subject to certain post-closing adjustments) and NEP's share of the entities' noncontrolling interests related to differential membership investors of approximately $910 million at the time of closing. NEP’s indirect ownership interest in Star Moon Holdings represents an indirect 50% controlling ownership interest in wind generation facilities and solar generation facilities, some of which include solar storage, consisting of the following: • White Mesa Wind, an approximately 501 MW wind generation facility located in Texas; • Irish Creek Wind, an approximately 301 MW wind generation facility located in Kansas; • Hubbard Wind, an approximately 300 MW wind generation facility located in Texas; • Cool Springs Solar, an approximately 213 MW solar generation and 40 MW solar storage facility located in Georgia; • Little Blue Wind, an approximately 251 MW wind generation facility located in Nebraska; • Dodge Flat Solar, an approximately 200 MW solar generation and 50 MW solar storage facility located in Nevada; • Elora Solar, an approximately 150 MW solar generation facility located in Tennessee; • Quitman II Solar, an approximately 150 MW solar generation facility located in Georgia; • Fish Springs Ranch Solar, an approximately 100 MW solar generation and 25 MW solar storage facility located in Nevada; • Minco Wind Energy III, an approximately 107 MW wind generation facility located in Oklahoma; • Ensign Wind Energy, an approximately 99 MW wind generation facility located in Kansas; • Borderlands Wind, an approximately 99 MW wind generation facility located in New Mexico; and • Quinebaug Solar, an approximately 49 MW solar generation facility located in Connecticut. The wind and solar generation facilities listed above were under construction by NEER when the acquisition was announced. Three projects (Dodge Flat Solar, Elora Solar and Fish Springs Ranch Solar) remain under construction and NEER has agreed to continue to manage the construction of such projects after the acquisition, at its own cost, and to contribute to those projects any capital necessary for the construction of the projects. If any of those projects do not achieve commercial operation by June 30, 2022, the purchaser will have the right to require the seller to repurchase the ownership interests in such projects for the same purchase price paid by the purchaser. In December 2021, NEER sold the remaining 50% noncontrolling ownership interest in the wind and solar generation facilities to a third party, which is reflected as noncontrolling interests on NEP's consolidated balance sheets (see Note 2 - Noncontrolling Interests). NEER will operate the wind and solar generation facilities under O&M and administrative service agreements (see Note 14). The purchase price for the asset acquisition was allocated to the assets acquired and liabilities assumed, including the noncontrolling interests, based on their estimated fair value. All fair value measurements of assets acquired and liabilities assumed were based on significant estimates and assumptions, including Level 3 (unobservable) inputs, which require judgment. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. The individual fair value measurements were adjusted for any difference between the total purchase price and the total estimated fair value of assets acquired and liabilities assumed. In connection with the asset acquisition of Star Moon Holdings, NEP recorded the following balances: (millions) Total consideration transferred $ 858 Identifiable assets acquired and liabilities assumed Cash $ 21 Accounts receivable, inventory and prepaid expenses 17 Due from related parties (a) 1,015 Property, plant and equipment – net 3,695 Intangible assets – PPAs 107 Other noncurrent assets 48 Accounts payable, accrued expenses and other current liabilities (a) (1,038) Asset retirement obligation (70) Intangible liabilities (179) Other noncurrent liabilities (65) Redeemable noncontrolling interests (b) (321) Noncontrolling interests (2,372) Total net identifiable assets $ 858 ____________________ (a) Due from related parties reflects the amounts due from NEER which will be used to pay accounts payable and accrued expenses related to the construction of the projects acquired. (b) See Note 2 - Redeemable Noncontrolling Interests. In December 2021, an indirect subsidiary of NEP completed the acquisition (Coram II acquisition) of a 102 MW wind generation facility (Coram II) located in California for cash consideration of approximately $128 million, plus working capital of $9 million (subject to post-closing working capital and other adjustments) and the assumption of debt of approximately $155 million. Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair value. All fair value measurements of assets acquired and liabilities assumed were based on significant estimates and assumptions, including Level 3 (unobservable) inputs, which require judgment. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices. The purchase price was allocated primarily to intangible assets – PPAs – net of approximately $133 million, property, plant and equipment – net of $72 million, long-term debt, including current portion, of $155 million and other noncurrent assets of $11 million. The excess of the purchase price over the estimated fair value of assets acquired and liabilities assumed was recognized as goodwill of approximately $70 million at the acquisition date. The goodwill arising from the acquisition results largely from the wind generation facility being well-situated in a strong market with long-term renewables demand, providing long-term optionality for the asset. All of the goodwill is expected to be deductible for income tax purposes over a 15 year period. The valuation of the acquired net assets is subject to change as NEP obtains additional information for its estimates during the measurement period. The primary areas of the purchase price allocation that are not yet finalized relate to identifiable intangible assets and residual goodwill. During 2021, NEP incurred approximately $12 million in acquisition-related costs which are reflected as operations and maintenance in the consolidated statements of income. The amounts of revenues, operating income, net income and net income attributable to NEP included in NEP's consolidated statements of income related to the August 2021 acquisition, the October 2021 acquisition and the Coram II acquisition for the periods after the respective closings through December 31, 2021 are as follows: (millions) Revenues $ 25 Operating income $ 1 Net income $ — Net income attributable to NEP $ 3 Supplemental Unaudited Pro forma Results of Operations NEP’s pro forma results of operations in the combined entity had the August 2021 acquisition, the October 2021 acquisition and the Coram II acquisition been completed on January 1, 2020 are as follows: Years Ended December 31, 2021 2020 (millions) Unaudited pro forma results of operations: Pro forma revenues $ 1,068 $ 1,028 Pro forma operating income $ 248 $ 268 Pro forma net income (loss) $ 412 $ (256) Pro forma net income (loss) attributable to NEP $ 143 $ (48) The unaudited pro forma consolidated results of operations include adjustments to: • reflect the historical results of the businesses acquired beginning on January 1, 2020 assuming consistent operating performance over all periods; • reflect the estimated depreciation and amortization expense based on the estimated fair value of property, plant and equipment – net and the intangible assets – PPAs; • reflect assumed interest expense related to funding the acquisitions; and • reflect related income tax effects. The unaudited pro forma information is not necessarily indicative of the results of operations that would have occurred had the transactions been made at the beginning of the periods presented or the future results of the consolidated operations. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. NEP's operating revenues are generated primarily from various non-affiliated parties under PPAs and natural gas transportation agreements. NEP's operating revenues from contracts with customers are partly offset by the amortization of intangible assets – PPAs. Revenue is recognized as energy and any related renewable energy attributes are delivered, based on rates stipulated in the respective PPAs, or natural gas transportation services are performed. NEP believes that the obligation to deliver energy and provide the natural gas transportation services is satisfied over time as the customer simultaneously receives and consumes benefits provided by NEP. In addition, NEP believes that the obligation to deliver renewable energy attributes is satisfied at multiple points in time, with the control of the renewable energy attribute being transferred at the same time the related energy is delivered. Included in NEP’s operating revenues for the years ended December 31, 2021, 2020 and 2019 is revenue from contracts with customers for renewable energy sales of approximately $704 million, $684 million and $624 million, respectively, and revenue from contracts with customers for natural gas transportation services of $237 million, $212 million and $207 million, respectively. NEP's accounts receivable are primarily associated with revenues earned from contracts with customers. Receivables represent unconditional rights to consideration and reflect the differences in timing of revenue recognition and cash collections. For substantially all of NEP's receivables, regardless of the type of revenue transaction from which the receivable originated, customer and counterparty credit risk is managed in the same manner and the terms and conditions of payment are similar. NEP recognizes revenues as energy and any related renewable energy attributes are delivered or natural gas transportation services are performed, consistent with the amounts billed to customers based on rates stipulated in the respective agreements. NEP considers the amount billed to represent the value of energy delivered or services provided to the customer. NEP’s customers typically receive bills monthly with payment due within 30 days. The contracts with customers related to pipeline service revenues contain a fixed price related to firm natural gas transportation capacity with maturity dates ranging from 2022 to 2035. At December 31, 2021, NEP expects to record approximately $1.8 billion of revenues over the remaining terms of the related contracts as the capacity is provided. Revenues yet to be earned under contracts with customers to deliver energy and any related energy attributes, which have maturity dates ranging from 2025 to 2052, will vary based on the volume of energy delivered. At December 31, 2021, NEP expects to record approximately $191 million of revenues related to the fixed price components of one PPA through 2039 as the energy is delivered. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense (benefit) are as follows: Years Ended December 31, 2021 2020 2019 (millions) Federal: Current $ 1 $ 5 $ — Deferred 32 (21) (20) Total federal 33 (16) (20) State: Current 1 2 — Deferred 14 (5) (6) Total state 15 (3) (6) Total income tax expense (benefit) $ 48 $ (19) $ (26) A reconciliation of U.S. federal income tax at the statutory rate to the actual income taxes is as follows: Years Ended December 31, 2021 2020 2019 (millions) Income tax expense (benefit) at U.S. statutory rate of 21% $ 99 $ (54) $ (90) Increases (reductions) resulting from: Taxes attributable to noncontrolling interests (59) 41 70 State income taxes, net of federal tax benefit 12 (3) (5) Tax credits (2) (3) (2) Other (2) — 1 Income tax expense (benefit) $ 48 $ (19) $ (26) The effective tax rate was approximately 10%, 7% and 6% for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. NEP believes that it is more likely than not that the deferred tax assets at December 31, 2021 shown in the table below, net of the valuation allowances, will be realized due to sufficient future income. The income tax effects of temporary differences giving rise to NEP's deferred income tax liabilities and assets are as follows: December 31, 2021 2020 (millions) Deferred tax liabilities: Investment in partnership (a) $ — $ (20) Total deferred tax liabilities — (20) Deferred tax assets: Net operating loss carryforwards 284 255 Investment in partnership (a) 23 — Tax credit carryforwards 13 10 Capital loss carryforward — 3 Valuation allowance (4) (4) Total deferred tax assets 316 264 Net deferred income taxes $ 316 $ 244 ____________________ (a) At December 31, 2021 and 2020, includes a deferred tax asset of approximately $4 million and $6 million, respectively, of interest limitation carryforward with an indefinite expiration period. Deferred tax assets and liabilities included on NEP's consolidated balance sheets are as follows: December 31, 2021 2020 (millions) Deferred income taxes – noncurrent assets $ 322 $ 249 Noncurrent other liabilities (6) (5) Net deferred income taxes $ 316 $ 244 The components of deferred tax assets, before valuation allowance, relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2021 are as follows: Amount Expiration Dates (millions) Net operating loss carryforwards: Federal $ 256 2034 – 2037 State 28 2028 – 2041 Total net operating loss carryforwards $ 284 (a) Tax credit carryforwards $ 13 2022 – 2041 ____________________ (a) Includes approximately $111 million and $3 million of federal and state, respectively, net operating loss carryforwards with an indefinite expiration period. During 2021 and 2020, NEP recorded state tax liabilities of approximately $1 million and $3 million (net of federal tax benefit), respectively, related to unrecognized tax benefits of prior year state tax filing positions. The total amount of unrecognized tax benefit that, if recognized, would affect the effective tax rate is approximately $4 million (net of federal tax benefit). The open tax years in all jurisdictions are 2014 through 2020. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | Derivative Instruments and Hedging Activity NEP uses derivative instruments (primarily interest rate swaps) to manage the interest rate cash flow risk associated with outstanding and expected future debt issuances and borrowings. NEP records all derivative instruments that are required to be marked to market as either assets or liabilities on its consolidated balance sheets and measures them at fair value each reporting period. NEP does not utilize hedge accounting for its derivative instruments. All changes in the derivatives' fair value are recognized in interest expense in NEP's consolidated statements of income (loss). At December 31, 2021 and 2020, the net notional amounts of the interest rate contracts were approximately $7,873 million and $7,088 million, respectively. During 2019, NEP reclassified approximately $6 million from AOCI to interest expense primarily because the related future transactions being hedged were no longer going to occur. At December 31, 2021, NEP's AOCI does not include any amounts related to discontinued cash flow hedges. Cash flows from the interest rate swap contracts are reported in cash flows from operating activities in NEP's consolidated statements of cash flows. Fair Value Measurement of Derivative Instruments – 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. NEP estimates the fair value of its derivative instruments 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 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. The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at December 31, 2021 and 2020, as required by disclosure rules, as well as the location of the net derivative positions, based on the expected timing of future payments, on NEP's consolidated balance sheets. December 31, 2021 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 17 $ — $ (10) $ 7 Liabilities: Interest rate contracts $ — $ 631 $ — $ (10) $ 621 Net fair value by balance sheet line item: Current other assets $ — Noncurrent other assets 7 Total derivative assets $ 7 Current derivative liabilities $ 26 Noncurrent derivative liabilities 595 Total derivative liabilities $ 621 December 31, 2020 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 47 $ — $ (47) $ — Liabilities: Interest rate contracts $ — $ 849 $ — $ (47) $ 802 Net fair value by balance sheet line item: Current derivative liabilities $ 20 Noncurrent derivative liabilities 782 Total derivative liabilities $ 802 ____________________ (a) Includes the effect of the contractual ability to settle contracts under master netting arrangements. Financial Statement Impact of Derivative Instruments – Gains (losses) related to NEP's interest rate contracts are recorded in NEP's consolidated financial statements as follows: Years Ended December 31, 2021 2020 2019 (millions) Interest rate contracts: Gains reclassified from AOCI to interest expense $ — $ — $ 5 Gains (losses) recognized in interest expense $ 168 $ (395) $ (373) Credit-Risk-Related Contingent Features – Certain of NEP's derivative instruments contain credit-related cross-default and material adverse change triggers, none of which contain requirements to maintain certain credit ratings or financial ratios. At December 31, 2021 and 2020, the aggregate fair value of NEP's derivative instruments with contingent risk features that were in a liability position was approximately $608 million and $769 million, respectively. |
Non-Derivative Fair Value Measu
Non-Derivative Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Non-Derivative Fair Value Measurements | Non-Derivative Fair Value Measurements Non-derivative fair value measurements consist of NEP's cash equivalents. The fair value of these financial assets is determined using the valuation techniques and inputs as described in Note 5 – Fair Value Measurements of Derivative Instruments. The fair value of money market funds that are included in cash and cash equivalents, current other assets and noncurrent other assets on NEP's consolidated balance sheets is estimated using a market approach based on current observable market prices. Recurring Non-Derivative Fair Value Measurements – NEP’s financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows: December 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 3 $ — $ 3 $ 2 $ — $ 2 Total assets $ 3 $ — $ 3 $ 2 $ — $ 2 Financial Instruments Recorded at Other than Fair Value – The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (millions) Long-term debt, including current maturities (a) $ 5,327 $ 5,529 $ 3,388 $ 3,529 ____________________ (a) At December 31, 2021 and December 31, 2020, approximately $5,506 million and $3,503 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). At December 31, 2021, approximately $1,188 million of the fair value relates to the 2020 convertible notes and the 2021 convertible notes and is estimated using Level 2. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following at December 31: 2021 2020 Range of Useful (millions) Power-generation assets (a) $ 10,439 $ 6,762 3 – 35 Pipeline assets, including temporary rights-of-way 957 948 25 – 50 Land improvements and buildings 525 399 3 – 35 Land, including perpetual rights-of-way 102 60 Construction work in progress 736 159 Other depreciable assets 365 278 3 – 35 Property, plant and equipment, gross 13,124 8,606 Accumulated depreciation (1,707) (1,443) Property, plant and equipment – net $ 11,417 $ 7,163 ___________________________ (a) Approximately 90% of power generation assets represent machinery and equipment used to generate electricity with a 35-year depreciable life. Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was approximately $263 million, $247 million and $236 million, respectively. A number of NEP's generation and pipeline facilities are encumbered by liens securing various financings. The net book value of NEP's assets serving as collateral was approximately $5.3 billion at December 31, 2021 . |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investments At December 31, 2021, investments in equity method investees primarily includes the approximately 50% ownership interest in Desert Sunlight Investment Holdings, LLC, approximately 50% ownership interest in Rosmar, the ownership interest in Meade, including Meade's ownership interest in the CPL and related expansion project, the 40% ownership interest in Pine Brooke Holdings and the 33.3% ownership interests in certain projects acquired in October 2021 (see Note 3). 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 controlling interests in these entities. Summarized information for these equity method investees is as follows: 2021 2020 2019 (millions) Revenues $ 334 $ 244 $ 213 Operating income $ 164 $ 142 $ 124 Net income (a) $ 261 $ 151 $ 67 ________________________ (a) Includes the earnings from equity method investee related to Meade's ownership interest in CPL and the related expansion subsequent to the Meade acquisition in November 2019. December 31, 2021 December 31, 2020 (millions) Current assets $ 186 $ 160 Noncurrent assets (a) $ 5,073 $ 4,297 Current liabilities $ 85 $ 84 Noncurrent liabilities $ 1,456 $ 1,011 NEP's share of underlying equity in the equity method investees $ 2,063 $ 1,915 Difference between investment carrying amounts and underlying equity in net assets (b) (167) (101) NEP's investment carrying amounts $ 1,896 $ 1,814 ________________________ (a) Includes the equity method investment related to Meade's ownership interest in the CPL and related expansion project. (b) Substantially all of the difference between the investment carrying amount and the underlying equity in net assets is being amortized over the life of the related projects. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | . Variable Interest Entities NEP has identified NEP OpCo, a limited partnership with a general partner and limited partners, as a VIE. NEP has consolidated the results of NEP OpCo and its subsidiaries because of its controlling interest in the general partner of NEP OpCo. At December 31, 2021, NEP owned an approximately 45.3% limited partner interest in NEP OpCo and NEE Equity owned a noncontrolling 54.7% 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 December 31, 2021, NEP OpCo consolidated 16 VIEs related to certain subsidiaries which have sold differential membership interests (see Note 2 – Noncontrolling Interests) in entities which own and operate 32 wind generation facilities as well as 7 solar projects, including related battery storage facilities. These entities are considered VIEs because the holders of the differential membership interests do not have substantive rights over the significant activities of these entities. The assets, primarily property, plant and equipment – net, and liabilities, primarily accounts payable and accrued expenses and asset retirement obligation, of the VIEs, totaled approximately $9,740 million and $1,310 million, respectively, at December 31, 2021, and $5,299 million and $224 million, respectively, at December 31, 2020. At December 31, 2021, NEP OpCo also consolidated five VIEs related to the sales of noncontrolling Class B interests in certain NEP subsidiaries. See Note 2 – Noncontrolling Interests and Note 13 – Class B Noncontrolling Interests. These entities are considered VIEs because the holders of the noncontrolling Class B interests do not have substantive rights over the significant activities of the entities. The assets, primarily property, plant and equipment – net, intangible assets – PPAs and investments in equity method investees, and the liabilities, primarily accounts payable and accrued expenses, long-term debt, other long-term liabilities and asset retirement obligation, of the VIEs totaled approximately $11,810 million and $2,480 million, respectively, at December 31, 2021 and totaled approximately $9,410 million and $1,502 million, respectively, at December 31, 2020. Certain of these VIEs include five other VIEs related to NEP's ownership interests in Rosmar, Silver State, Meade, Pine Brooke Holdings and Star Moon Holdings (see Note 3). In addition, certain of these VIEs contain entities which have sold differential membership interests and approximately $4,749 million and $2,694 million of assets and $1,159 million and $153 million of liabilities are also included in the disclosure of the VIEs related to differential membership interests at December 31, 2021 and 2020, respectively. Certain subsidiaries of NEP OpCo have noncontrolling interests in entities accounted for under the equity method that are considered VIEs. See Note 9. NEP has an indirect equity method investment in three NEER solar projects with a total generating capacity of 277 MW and battery storage capacity of 230 MW. 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 NEP OpCo Class B Units, will retain 100% of the economic rights in the projects to which the respective Class B Units relate, including the right to all distributions paid by the project subsidiaries that own the projects to NEP OpCo. NEER has agreed to indemnify NEP against all risks relating to 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 December 31, 2021 and 2020, NEP's equity method investment related to the non-economic ownership interests of approximately $47 million and $10 million, respectively, is reflected as noncurrent other assets and, at December 31, 2020, $21 million is reflected as noncurrent other liabilities on NEP's consolidated balance sheets. During 2021, a subsidiary of NEER contributed certain battery storage assets to one of the three NEER solar projects discussed above which resulted in an increase in noncurrent other assets and a corresponding increase in noncontrolling interests on NEP's consolidated balance sheets at December 31, 2021. All equity in earnings of the non-economic ownership interests is allocated to net income attributable to noncontrolling interests. 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. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt NEP’s long-term debt agreements require monthly, quarterly or semi-annual payments of interest. Principal payments on the senior secured limited-recourse debt is primarily due monthly or semi-annually. The carrying value of NEP’s long-term debt consists of the following: December 31, 2021 2020 Maturity Balance Weighted-Average Balance Weighted-Average (millions) (millions) NEP: Senior unsecured convertible notes – fixed (a) 2024 – 2025 $ 1,100 — % $ 536 — % NEP OpCo: Senior unsecured notes – fixed (b) 2024 – 2027 1,800 4.22 % $ 1,800 4.22 % Revolving credit facility – variable (a)(c) 2026 554 1.61 % — Project level: Senior secured limited-recourse debt – fixed 2033 21 4.52 % 23 4.52 % Senior secured limited-recourse debt – variable (c)(d) 2026 – 2032 1,544 1.55 % 874 1.81 % Bank loan (c) 2023 205 1.90 % 205 1.90 % Other long-term debt – variable 2026 – 2031 154 2.16 % — Unamortized debt issuance costs and discount (51) (50) Total long-term debt 5,327 3,388 Less current portion of long-term debt 33 12 Long-term debt, excluding current portion $ 5,294 $ 3,376 ________________________ (a) See additional discussion of the convertible notes and the NEP OpCo credit facility below. (b) The NEP OpCo senior unsecured notes are absolutely and unconditionally guaranteed, on a senior unsecured basis, by NEP and a subsidiary of NEP OpCo. (c) Variable rate is based on an underlying index plus a margin. (d) Interest rate contracts, primarily swaps, have been entered into for a majority of these debt issuances. See Note 5. Minimum annual maturities of long-term debt are approximately $33 million, $243 million, $1,329 million, $703 million and $1,905 million for 2022, 2023, 2024, 2025 and 2026, respectively. NEP OpCo and its direct subsidiary (loan parties) are parties to a variable rate, senior secured revolving credit facility (NEP OpCo credit facility). At December 31, 2021, the NEP OpCo credit facility provided up to $1.25 billion of revolving credit loans and included borrowing capacity of up to $400 million for letters of credit and incremental commitments to increase the NEP OpCo credit facility to up to $2.0 billion in the aggregate, subject to certain conditions. Borrowings under the NEP OpCo credit facility can be used by the loan parties to fund working capital and expansion projects, to make acquisitions and for general business purposes. The NEP OpCo credit facility is subject to a facility fee ranging from 0.20% to 0.35% per annum depending on NEP OpCo's leverage ratio (as defined in the NEP OpCo credit facility). At December 31, 2021, approximately $117 million of letters of credit were issued under the NEP OpCo credit facility primarily related to debt service reserves and as security for certain financing agreements of NEP OpCo's subsidiaries. In February 2022, the loan parties extended the maturity date for substantially all of the NEP OpCo credit facility to 2027 and borrowed approximately $86 million under the NEP OpCo credit facility. At December 31, 2021, the Meade purchaser and Pipeline Investment Holdings, LLC (Meade Holdings) are parties to a credit agreement (Meade credit agreement) which provides up to $915 million under three limited-recourse senior secured variable rate term loans maturing in 2026 to finance a portion of the Meade acquisition and the expansion (see Note 3). Approximately $816 million was borrowed simultaneously with the closing of the Meade acquisition and the remaining amount available under the credit agreement is expected to be borrowed regularly through the completion of the expansion. At December 31, 2021, approximately $45 million remains available under the Meade credit agreement. In addition, at December 31, 2021, South Texas Midstream Holdings, LLC (STX Holdings) is party to a credit agreement which provides up to $270 million under a revolving credit facility (STX Holdings revolving credit facility). Proceeds from any borrowings under the STX Holdings revolving credit facility are available exclusively to fund the cash portion of NEP's repurchase, if any, of the Class B noncontrolling interests related to STX Midstream (see Note 13 – Class B Noncontrolling Interests), subject to certain limitations. The long-term debt agreements discussed above contain default and related acceleration provisions relating to the failure to make required payments or to observe other covenants in the respective financing agreements and related documents including financial covenants primarily related to debt service coverage ratios, as well as a maximum leverage ratio and a minimum interest coverage ratio. Additionally, under the NEP OpCo credit facility, NEP OpCo and its direct subsidiary are required to comply with certain financial covenants on a quarterly basis and NEP OpCo's ability to pay cash distributions is subject to certain other restrictions. All borrowings under the NEP OpCo credit facility and the NEP OpCo senior unsecured notes are guaranteed by NEP OpCo and NEP. The NEP OpCo credit facility contains various covenants and restrictive provisions that limit NEP OpCo’s ability to, among other things: • incur or guarantee additional debt; • make distributions on or redeem or repurchase common units; • make certain investments and acquisitions; • incur certain liens or permit them to exist; • enter into certain types of transactions with affiliates; • merge or consolidate with another company; and • transfer, sell or otherwise dispose of projects. The long-term debt agreements listed above all contain provisions which, under certain conditions, restrict the payment of dividends and other distributions. At December 31, 2021, NEP and its subsidiaries were in compliance with all financial debt covenants under their respective financing agreements. During 2021, NEP issued $500 million principal amount of senior unsecured convertible notes (2021 convertible notes). The 2021 convertible notes are unsecured obligations of NEP and are absolutely and unconditionally guaranteed, on a senior unsecured basis, by NEP OpCo. A holder may convert all or a portion of its 2021 convertible notes in accordance with the related indenture. Upon conversion of the 2021 convertible notes, NEP will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, NEP common units or a combination of cash and common units, at NEP's election, in respect of the remainder, if any, of NEP's conversion obligation in excess of the aggregate principal amount of the notes being converted. At December 31, 2021, the initial conversion rate, which is subject to certain adjustments, was 11.0492 NEP common units per $1,000 of the 2021 convertible notes, which is equivalent to an initial conversion price of approximately $90.5043 per NEP common unit. The conversion rate is subject to adjustment in certain circumstances, as set forth in the related indenture. Upon the occurrence of a fundamental change (as defined in the related indenture), holders of the 2021 convertible notes may require NEP to repurchase all or a portion of their convertible notes for cash in an amount equal to the principal amount of the 2021 convertible notes to be repurchased, plus accrued and unpaid special interest, if any. The 2021 convertible notes are not redeemable at NEP’s option prior to maturity. In connection with the issuance of the 2021 convertible notes, NEP entered into a registration rights agreement pursuant to which, among other things, NEP has agreed to file a shelf registration statement with the Securities and Exchange Commission and use its commercially reasonable efforts to cause such registration statement to become effective on or prior to June 17, 2022, covering resales of NEP common units, if any, issuable upon a conversion of the 2021 convertible notes. NEP entered capped call transactions (2021 capped call) in connection with the issuance of the 2021 convertible notes. Under the 2021 capped call, NEP purchased capped call options with an initial strike price of $90.5043 and an initial cap price of $113.1300, subject to certain adjustments. The 2021 capped call was purchased for approximately $31 million, which was recorded as a reduction to common units equity on NEP's consolidated balance sheets. If, upon conversion of the 2021 convertible notes, the price per NEP common unit during the relevant valuation period is above the strike price, there would generally be a payment to NEP (if NEP elects to cash settle) or an offset of potential dilution to NEP's common units up to the cap price (if NEP elects to settle in NEP common units). During 2020, approximately $300 million of senior unsecured convertible notes issued in 2017 (2017 convertible notes) were converted and NEP issued 5.7 million NEP common units and received $30 million in cash related to the unwinding of a capped call transaction that was entered into in connection with the issuance of the 2017 convertible notes. Also during 2020, NEP issued $600 million principal amount of senior unsecured convertible notes (2020 convertible notes). In connection with the issuance of the 2020 convertible notes, NEP recorded the value of the conversion option of approximately $64 million in common units equity (see Note 2 – Distinguishing Liabilities and Equity). The 2020 convertible notes are unsecured obligations of NEP and are absolutely and unconditionally guaranteed, on a senior unsecured basis, by NEP OpCo. A holder may convert all or a portion of its 2020 convertible notes in accordance with the related indenture. Upon conversion of the 2020 convertible notes, NEP will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, NEP common units or a combination of cash and common units, at NEP's election, in respect of the remainder, if any, of NEP's conversion obligation in excess of the aggregate principal amount of the notes being converted. At December 31, 2021, the initial conversion rate, which is subject to certain adjustments, was 13.1296 NEP common units per $1,000 of the 2020 convertible notes, which rate is equivalent to a conversion price of approximately $76.1638 per NEP common unit. Upon the occurrence of a fundamental change (as defined in the related indenture), holders of the 2020 convertible notes may require NEP to repurchase all or a portion of their convertible notes for cash in an amount equal to the principal amount of the 2020 convertible notes to be repurchased, plus accrued and unpaid special interest, if any. The 2020 convertible notes are not redeemable at NEP’s option prior to maturity. NEP entered a capped call transaction (2020 capped call) in connection with the issuance of the 2020 convertible notes. Under the 2020 capped call, NEP purchased capped call options with an initial strike price of $76.1638 and an initial cap price of $120.5930. The 2020 capped call was purchased for approximately $63 million, which was recorded as a reduction to common units equity on NEP's consolidated balance sheets. If, upon conversion of the 2020 convertible notes, the price per NEP common unit during the relevant valuation period is above the strike price, there would generally be a payment to NEP (if NEP elects to cash settle) or an offset of potential dilution to NEP's common units (if NEP elects to settle in NEP common units). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Distributions – During 2021, 2020 and 2019, NEP distributed approximately $198 million, $154 million and $115 million, respectively, to its common unitholders. In addition, NEP paid approximately $59 million in distributions to its common unitholders in February 2022. Earnings Per Unit – Diluted earnings per unit are based on the weighted-average number of common units and potential common units outstanding during the period, including the dilutive effect of the convertible notes and preferred units (see Preferred Units below). Following the adoption of a new accounting standard on January 1, 2021 (see Note 2 – Distinguishing Liabilities from Equity), the dilutive effect of the 2020 convertible notes and the 2021 convertibles notes is calculated using the if-converted method. During 2019 and 2020, the dilutive effect of the 2017 convertible notes and preferred units was computed using the if-converted method. During 2020, the dilutive effect of the 2020 convertible notes was computed using the treasury stock method. The reconciliation of NEP's basic and diluted earnings (loss) per unit is as follows: Years Ended December 31, 2021 2020 2019 (millions, except per unit amounts) Numerator: Net income (loss) attributable to NEP – basic $ 137 $ (55) $ (88) Adjustments for convertible notes and preferred units (a) — — — Net income (loss) attributable to NEP used to compute diluted earnings per unit $ 137 $ (55) $ (88) Denominator: Weighted-average number of common units outstanding – basic 77.2 68.4 58.8 Effect of dilutive convertible notes and preferred units (a) 0.2 — — Weighted-average number of common units outstanding and assumed conversions 77.4 68.4 58.8 Earnings (loss) per unit attributable to NEP: Basic $ 1.77 $ (0.81) $ (1.51) Assuming dilution $ 1.77 $ (0.81) $ (1.51) ____________________ (a) Due to the net losses incurred during the years ended December 31, 2020 and 2019, the weighted-average number of common units issuable pursuant to the convertible notes and preferred units totaling approximately 7.5 million and 17.0 million, respectively, were not included in the calculation of diluted earnings per unit due to their antidilutive effect. ATM Program – NEP had an at-the-market equity issuance program (ATM program) pursuant to which NEP could issue, from time to time, up to $150 million of its common units. During the year ended December 31, 2021, NEP issued approximately 0.7 million common units under the ATM program for gross proceeds of approximately $50 million. During the years ended December 31, 2020 and 2019, NEP did not issue any common units under the ATM program. Fees related to the ATM program totaled less than $1 million in 2021. Preferred Units – In November 2017, NEP issued and sold 14,021,561 Series A convertible preferred units representing limited partner interests in NEP (convertible preferred units) for an aggregate purchase price of approximately $550 million. NEP contributed the proceeds to NEP OpCo in exchange for an equivalent number of a new series of NEP OpCo preferred units with economically equivalent rights to the convertible preferred units. In both July 2019 and November 2019, NEP converted approximately 4,673,852 convertible preferred units into NEP common units on a one-for-one basis. During the year ended December 31, 2020, NEP issued approximately 4,673,857 NEP common units upon the conversion of the remaining convertible preferred units on a one-for-one basis. Class B Noncontrolling Interests – During 2021, 2020 and 2019, subsidiaries of NEP sold Class B noncontrolling membership interests in NEP Renewables II, NEP Pipelines, STX Midstream, Genesis Holdings and NEP Renewables III as described below: NEP Renewables II NEP Pipelines STX Midstream Genesis Holdings NEP Renewables III Underlying projects/pipelines Renewable energy projects with a combined net generating capacity of approximately 1,192 MW Equity method interest in a natural gas pipeline located in Pennsylvania Seven natural gas pipeline assets located in Texas Renewable energy projects with a combined net generating capacity of approximately 1,124 MW Renewable energy projects with a combined net generating capacity of approximately 1,260 MW Date of sale June 11, 2019 November 13, 2019 December 4, 2019 December 18, 2020 December 28, 2021 Gross proceeds $900 million $168 million $750 million $1,243 million (a) $408 million (b) Initial allocation of distributable cash to Class B investors 5% 1% 12.5% 25% (a) 65% (b) Period for initial allocation 6 years 6 years 4 years 10 years 10 years Period for initial allocation if minimum buyouts have not occurred 4.5 years 5 years 3.5 years 6.75 years 6 years Allocation of distributable cash to Class B investors after initial allocation period 99% 99% 75% (c) 80% (a) 99% Date buyout period begins December 11, 2022 May 13, 2023 December 4, 2022 December 18, 2025 December 28, 2026 Buyout right timing (d) Periodically, and for partial interests between years 3.5 and 6 Periodically, and for partial interests between years 3.5 and 6.5 Periodically, and for partial interests between years 3 and 7 Periodically, and for partial interests between years 5 and 10 Periodically, and for partial interests between years 5 and 10 Percentage of buyout price that can be paid in NEP non-voting common units at current market price (e) 70% 100% 70% 100% 100% ____________________ (a) At December 31, 2020, NEP retained certain Class B membership interests in Genesis Holdings which were sold to the Class B investors for approximately $493 million at a final funding in June 2021. Prior to the final Class B funding, NEP received approximately 83% of Genesis Holdings’ cash distributions and the third-party investors received 17%. The allocation of distributable cash to Class B investors increases to 99% if NEP has not exercised certain buyout rights by September 18, 2027. (b) At December 31, 2021, NEP retained certain Class B membership interests in NEP Renewables III which will be sold to the Class B investors for approximately $408 million at a final funding expected to occur by the end of the second quarter of 2022. Until the final Class B funding, NEP will receive approximately 67.5% of NEP Renewables III's cash distributions and the third-party investors will receive 32.5%. (c) Increases to 95% if NEP has not exercised its entire buyout right by December 4, 2025. (d) The buyout right is subject to certain limitations and/or extensions in the respective agreements, including, but not limited to, NEP being able to purchase a maximum of the Class B units at anniversaries specified in certain of the agreements. (e) NEP may elect to pay the buyout price in NEP non-voting common units or cash (or any combination thereof), subject to conditions and limitations set forth in the applicable agreements. Percentages shown represent the maximum percentages NEP expects it can pay in NEP non-voting common units without the acquiescence of the Class B investor, subject to applicable closing conditions. Holders of the NEP non-voting common units will have the right to receive pro rata quarterly cash distributions and the right to convert, subject to certain limitations, the NEP non-voting common units into NEP common units on a one-for-one basis. The specified percentage of the buyout price for the Class B noncontrolling interests in STX Midstream are payable in NEP common units. In December 2018, a subsidiary of NEP sold Class B membership interests in NEP Renewables, with underlying renewable energy projects with a combined generating capacity of approximately 1,388 MW, to a third-party investor. While the third-party investor owned the Class B membership interests in NEP Renewables, the third-party investor received 15% of NEP Renewables' distributable cash. In November 2021, NEP paid aggregate consideration of approximately $885 million, consisting of 7,253,580 NEP common units and approximately $265 million in cash to the third-party investor after electing to exercise the buyout right and purchase all of the Class B membership interests in NEP Renewables. Accumulated Other Comprehensive Income (Loss) – Accumulated Other Comprehensive Income (Loss) Net Unrealized Other Comprehensive Total (millions) Balances, December 31, 2018 $ 6 $ (24) $ (18) Amounts reclassified from AOCI to interest expense (6) — (6) Other comprehensive income related to equity method investee — 2 2 Net other comprehensive income (loss) (6) 2 (4) Balances, December 31, 2019 — (22) (22) Other comprehensive income related to equity method investee — 2 2 Balances, December 31, 2020 — (20) (20) Other comprehensive income related to equity method investee — 2 2 Balances, December 31, 2021 $ — $ (18) $ (18) AOCI attributable to noncontrolling interest, December 31, 2021 $ — $ (10) $ (10) AOCI attributable to NextEra Energy Partners, December 31, 2021 $ — $ (8) $ (8) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Each project entered into O&M and administrative services agreements (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 NEP's consolidated statements of income (loss). Additionally, certain NEP subsidiaries pay affiliates for transmission and retail power services which are reflected as operations and maintenance in NEP's consolidated statements of income (loss). 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 (MSA) – 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’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 years ended December 31, 2021, 2020 and 2019 include approximately $138 million, $112 million and $93 million, respectively, related to the MSA. Cash Sweep and Credit Support Agreement (CSCS agreement) – NEP OpCo is a party to the CSCS agreement with NEER under which NEER and certain of its affiliates provide credit support in the form of letters of credit and guarantees to satisfy NEP’s subsidiaries’ contractual obligations. NEP OpCo pays 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 years ended December 31, 2021, 2020 and 2019 include approximately $6 million, $6 million and $6 million, respectively, related to the CSCS agreement. NEER and certain of its affiliates may withdraw funds (Project Sweeps) from NEP OpCo under the CSCS agreement, or its subsidiaries in connection with certain long-term debt agreements, and hold those funds in accounts belonging to NEER or its affiliates 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 affiliates 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 or its affiliates fail to return withdrawn funds when required by NEP's subsidiaries’ financing agreements, the lenders will be entitled to draw on any credit support provided by NEER or its affiliates 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. At December 31, 2021 and 2020 , the cash sweep amounts held in accounts belonging to NEER or its affiliates were approximately $57 million and $10 million, respectively, and are included in due from related parties on NEP’s 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. NextEra Energy Capital Holdings, Inc. ( 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 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 surety 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. During 2021, NEECH and NEER also provided guarantees associated with obligations, primarily incurred and future construction payables, associated with the December 2021 acquisition from NEER discussed in Note 3. At December 31, 2021, NEECH or NEER guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $3,778 million related to these obligations. Due to Related Parties – Noncurrent amounts due to related parties on NEP's consolidated balance sheets primarily 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 noncurrent other assets on NEP’s consolidated balance sheets. Transportation and Fuel Management Agreements – 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 years ended December 31, 2021, 2020 and 2019, NEP recognized approximately $36 million, $15 million and $7 million, respectively, in revenues related to the transportation and fuel management agreements. The increase in the recognized revenues in 2021 primarily relates to higher demand and the related impact on natural gas prices during extreme winter weather experienced primarily in Texas during February 2021. Related Party Note Receivable – As part of the 2016 acquisition from NEER of Seiling Wind Investments, LLC, a subsidiary of NEP acquired an approximately $25 million receivable from a subsidiary of NEER (Seiling related party note receivable) relating to operational performance issues at the related projects. The Seiling related party note receivable is intended to compensate NEP for the operational performance issues and is supported in full by compensation expected from an equipment vendor under an undertaking the vendor has with NEER. This receivable bears interest at 7.1% per annum, is payable by NEER in equal semi-annual installments and matures in December 2035. During each of the years ended December 31, 2021, 2020 and 2019, NEP received payments of approximately $2 million. The Seiling related party note receivable, interest and related payments are reflected in noncontrolling interests on NEP's consolidated financial statements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases NEP has operating and finance leases primarily related to purchased power agreements and land use agreements for certain of its renewable energy projects. At December 31, 2021 and 2020, NEP had recorded right-of-use (ROU) assets operating leases ROU assets lease liabilities ranging from 2022 to 2057. NEP recognized approximately $3 million, $3 million and $3 million in 2021, 2020 and 2019, respectively, of operating lease costs associated with its ROU assets and which are included in O&M expenses in NEP’s consolidated statements of income (loss). In addition, approximately $7 million, $6 million and $7 million was recorded related to variable lease costs in 2021, 2020 and 2019, respectively. Other operating and finance lease-related amounts were not material to NEP’s consolidated statements of income (loss) or cash flows for the periods presented. At December 31, 2021, NEP's lease agreements call for fixed payments of approximately $5 million annually over the next five years and $136 million thereafter. During 2021, NEP's ROU assets obtained in exchange for operating and finance lease obligations totaled approximately $51 million and primarily relate to finance leases acquired in the December 2021 acquisition from NEER (see Note 3). NEP has a sales-type lease related to a battery storage facility that sells its electric output under a power sales agreement to a third party which provides the customer the ability to dispatch the facility. At December 31, 2021, the net investment in sales-type lease is approximately $16 million. At December 31, 2021, the power sales agreement has an expiration date of 2041 and NEP expects to receive approximately $28 million of lease payments over the remaining term of the power sales agreement with no one year being material. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Development, Engineering and Construction Commitments – At December 31, 2021, an indirect subsidiary of NEP had a funding commitment related to a pipeline expansion project. As of December 31, 2021, the NEP subsidiary had invested approximately $72 million related to the expansion project which is reflected as investments in equity method investees on the consolidated balance sheets. As of December 31, 2021, the NEP subsidiary expects to invest approximately $8 million of additional funds under its commitment as the expansion project began operations in the fourth quarter of 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – NEP’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S.), or GAAP. The consolidated financial statements include NEP’s accounts and operations and those of its subsidiaries in which NEP has a controlling interest. All intercompany transactions have been eliminated in consolidation. Certain amounts included in prior years' consolidated financial statements have been reclassified to conform to the current year's presentation. The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition – R evenue is generated primarily from various non-affiliated parties under long-term power purchase agreements (PPA) and natural gas transportation agreements. 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. See Note 4. In 2021, 2020 and 2019, approximately $141 million, $122 million and $125 million, respectively, of NEP's consolidated revenues were attributable to foreign countries, primarily related to its contract with a Mexican counterparty. |
Income Taxes | Income Taxes – NEP recognizes in income its applicable ownership share of U.S. income taxes due to the disregarded tax status of substantially all of the projects under NEP OpCo. |
Equity | Equity – Equity reflects the financial position of the parties with an ownership interest in the consolidated financial statements. NextEra Energy Partners GP, Inc. has a total equity interest in NEP of $10,000 at December 31, 2021 and 2020. |
Noncontrolling Interests | Noncontrolling Interests – Noncontrolling interests represents the portion of net assets in consolidated entities that are not owned by NEP and are reported as a component of equity on NEP’s consolidated balance sheets. At December 31, 2021 , noncontrolling interests on NEP's consolidated balance sheets primarily reflects NEE Equity's 54.7% noncontrolling interest in NEP OpCo, non-affiliated parties' 10% interest in one of the Texas pipelines and 50% interest in the renewable energy projects purchased from NEER in December 2021 (see Note 3), NEER's approximately 50% noncontrolling ownership interest in Silver State, the interests related to differential membership interests discussed below and the Class B noncontrolling ownership interests discussed below. Certain indirect subsidiaries of NEP have sold Class B membership interests in entities that have ownership interests in 32 wind projects and 7 solar projects, including related battery storage facilities, (differential membership interests) to third-party investors. Although the third-party investors own equity interests in the wind and solar projects, NEP retains a controlling interest in the entities as of December 31, 2021 and therefore presents the differential membership interests as noncontrolling interests. NEP, through O&M and administrative services agreements with subsidiaries of NEER, operates and manages the wind and solar projects, and consolidates the entities that directly and indirectly own the wind and solar projects. The third-party investors are allocated earnings, tax attributes and cash flows in accordance with the respective limited liability company agreements. Those economics are allocated primarily to the third-party investors until they receive a targeted return (the flip date) and thereafter to NEP. NEP has the right to call the third-party interests at specified amounts if and when the flip date occurs. Subsidiaries of NEP have sold Class B noncontrolling membership interests in NEP Renewables, LLC (NEP Renewables), NEP Renewables II, LLC (NEP Renewables II), NextEra Energy Partners Pipelines, LLC (NEP Pipelines), South Texas Midstream, LLC (STX Midstream), Genesis Solar Holdings, LLC (Genesis Holdings) and NEP Renewables III, LLC (NEP Renewables III) (collectively, Class B noncontrolling ownership interests). In November 2021, NEP exercised its buyout right for the Class B noncontrolling interests in NEP Renewables. See Note 13 – Class B Noncontrolling Interests. The NEP subsidiaries selling the Class B noncontrolling ownership interests retain controlling interests in the related entities as of December 31, 2021 and therefore NEP presents the Class B noncontrolling ownership interests as noncontrolling interests. For the differential membership interests and Class B noncontrolling ownership interests, NEP has determined the allocation of economics between the controlling party and third-party investor should not follow the respective ownership percentages for each investment but rather the hypothetical liquidation of book value (HLBV) method based on the governing provisions in each respective limited liability company agreement. Under the HLBV method, the amounts of income and loss attributable to the noncontrolling interests reflects changes in the amount the owners would hypothetically receive at each balance sheet date under the respective liquidation provisions, assuming the net assets of these entities were liquidated at the recorded amounts, after taking into account any capital transactions, such as contributions and distributions, between the entities and the owners. At the point in time that the third party, in hypothetical liquidation, would achieve its targeted return, NEP attributes the additional hypothetical proceeds to the differential membership interests based on the call price. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interests – Prior to the acquisition in December 2021 from NEER (see Note 3), differential membership interests related to certain of the acquired solar facilities were sold to third party investors. If, subject to certain contingencies, certain events occur that delay or prevent completion of any underlying projects, NEP may be obligated to reacquire all or a portion of the third party investors' interests in these projects for up to approximately $204 million. Additionally, if |
Property, Plant and Equipment - net | Property, Plant and Equipment – net – 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 the estimated useful lives ranging from three Property, plant and equipment – net on NEP's consolidated balance sheets includes construction work in progress which reflects construction materials, other equipment, third-party engineering costs, capitalized interest and other costs directly associated with the development and construction of the various projects. Upon commencement of plant or pipeline operations, costs associated with construction work in progress are transferred to the appropriate category in property, plant and equipment – net. The American Recovery and Reinvestment Act of 2009, as amended, provided for an option to elect a cash grant (convertible investment tax credits) for certain renewable energy property. Convertible investment tax credits (CITCs) are recorded as a reduction in property, plant and equipment – net on NEP's consolidated balance sheets and are amortized as a corresponding reduction to depreciation expense over the estimated life of the related asset. At December 31, 2021 and 2020 , CITCs, net of amortization, were approximately $448 million and $400 million, respectively. At December 31, 2020, other receivables on NEP's consolidated balance sheets included a CITC receivable of approximately $124 million associated with one of its solar projects. At December 31, 2020, corresponding liabilities of approximately $100 million and $12 million related to the CITC payments required to be paid to the third party who constructed the project were reflected as accounts payable and accrued expenses and current other liabilities, respectively, and $12 million of CITC payments to be paid to NEER are reflected as current due to related parties on NEP's consolidated balance sheets. During 2021, a settlement agreement related to the CITC receivable was reached and the CITC receivable and related payments to NEER and the third party were paid. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. NEP primarily holds such investments in money market funds. |
Accounts Receivable and Allowance for Doubtful Accounts | 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 NEP's 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 at December 31, 2021 and 2020. |
Restricted Cash | Restricted Cash – At December 31, 2021 and 2020, NEP had approxima tely $4 million and $4 million, respectively, of restricted cash included in current other assets on NEP's consolidated balance sheets. Restricted cash at December 31, 2021 and 2020 is primarily related to collateral deposits from a counterparty. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds. |
Concentration of Credit Risk | 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. The majority of NEP's counterparties 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. Substantially all amounts due from such counterparties at December 31, 2021 have been collected. |
Inventories | Inventories – |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets and Finite-Lived Intangible Assets – |
Business Combinations | 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 acquisitions 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 | Goodwill and Indefinite-Lived Intangible Assets – Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually by applying a fair value-based analysis. NEP completed the annual impairment test for goodwill and indefinite-lived intangibles using an assessment date of October 1 and determined, based on the results, that no goodwill impairment charge was required. |
Intangible Asset - Customer Relationships and Intangible Asset - PPAs | Intangible Asset – Customer Relationships – At December 31, 2021 and 2020 , NEP's consolidated balance sheets reflect intangible asset – customer relationships related to the acquisition of the Texas pipelines in 2015. Intangible asset – customer relationships are amortized on a straight-line basis over the estimated useful life of approximately 40 years. For each of the years ended December 31, 2021, 2020 and 2019, amortization expense was approximately $17 million and is expected to be approximately $17 million in each of the next five years. Intangible Asset – PPAs – At December 31, 2021 and 2020 |
Intangible Liabilities | Intangible Liabilities – PPAs |
Derivative Instruments and Hedging Activities | 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 a liability measured at fair value. See Note 5. |
Fair Value Measurements | 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. |
Long-term Debt Costs | Long-term Debt Costs – |
Asset Retirement Obligations | 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) under accounting guidance that requires a liability for the fair value of an ARO to 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 (loss). 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. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities – NEP accounts for the investments in its unconsolidated entities under the equity method. NEP’s share of earnings (losses) in the unconsolidated entities is included in equity in earnings of equity method investees and equity in earnings (losses) of non-economic ownership interests in NEP's consolidated statements of income (loss). NEP records losses of the unconsolidated entities only to the extent of its investment unless there is an obligation to provide further financial support for the investee. All equity in earnings (losses) of the non-economic ownership interests is allocated to net income attributable to noncontrolling interests. See Note 9 and Note 10. NEP evaluates its equity method investments for impairment when events or changes in circumstances indicate that the fair value of the investment is less than the carrying value and the investment may be other-than-temporarily impaired. An impairment loss is required to be recognized if the impairment is deemed to be other than temporary. Investments that are other-than-temporarily impaired are written down to their estimated fair value and cannot subsequently be written back up for increases in estimated fair value. |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) – |
Leases | Leases – NEP determines if an arrangement is a lease at inception. NEP recognizes a right-of-use (ROU) asset and a lease liability for operating and finance leases by recognizing and measuring leases at the commencement date based on the present value of lease payments over the lease term. For sales-type leases, the book value of the leased asset is removed from the balance sheet and a net investment in sales-type lease is recognized based on fixed payments under the contract and the residual value of the asset being leased. NEP has elected not to apply the recognition requirements to short-term leases and not to separate nonlease components from associated lease components for substantially all classes of underlying assets except for purchase power agreements. ROU assets are included primarily in noncurrent other assets, lease liabilities are included in current and noncurrent other liabilities and net investments in sales-type leases are included in current and noncurrent other assets on NEP's consolidated balance sheets. Operating lease expense is included in O&M expense, interest and amortization expense associated with finance leases are included in interest expense and depreciation and amortization expense, respectively, and interest income associated with sales-type leases is included in operating revenues in NEP’s consolidated statements of income (loss). See Note 11. |
Fair Value of Financial Instruments | The fair value of money market funds that are included in cash and cash equivalents, current other assets and noncurrent other assets on NEP's consolidated balance sheets is estimated using a market approach based on current observable market prices. |
Fair Value Measurement of Derivative Instruments | NEP uses derivative instruments (primarily interest rate swaps) to manage the interest rate cash flow risk associated with outstanding and expected future debt issuances and borrowings. NEP records all derivative instruments that are required to be marked to market as either assets or liabilities on its consolidated balance sheets and measures them at fair value each reporting period. NEP does not utilize hedge accounting for its derivative instruments. All changes in the derivatives' fair value are recognized in interest expense in NEP's consolidated statements of income (loss). Fair Value Measurement of Derivative Instruments – 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. NEP estimates the fair value of its derivative instruments 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 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. |
New Accounting Pronouncements, Policy | Reference Rate Reform – In March 2020, the Financial Accounting Standards Board (FASB) issued an accounting standards update which provides certain options to apply GAAP guidance on contract modifications and hedge accounting as companies transition from the London Inter-Bank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. NEP’s contracts that reference LIBOR or other interbank offered rates mainly relate to debt and derivative instruments. The standards update was effective upon issuance and can be applied prospectively through December 31, 2022. As agreements that reference LIBOR or other interbank offered rates as an interest rate benchmark are amended, NEP evaluates whether to apply the options provided by the standards update with regard to eligible contract modifications. Distinguishing Liabilities and Equity – In August 2020, the FASB issued an accounting standards update which updates the accounting guidance for financial instruments with the characteristics of liabilities and equity, including debt with conversion options and other equity-linked instruments such as the $600 million in principal amount of convertible notes issued in December 2020 (2020 convertible notes) (see Note 12). NEP adopted this standard on January 1, 2021 by applying it retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective approach). Upon adoption, NEP reclassified approximately $64 million related to the embedded conversion feature for the 2020 convertible notes from common units equity to long-term debt. |
Summary of Significant Accoun_3
Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Non-controlling Interests | |
Noncontrolling Interest [Line Items] | |
Schedule of Stockholders Equity | Details of the activity in noncontrolling interests for the years ended December 31, 2021, 2020 and 2019 are below: Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling (millions) Balances, December 31, 2018 $ 751 $ 2,019 $ 342 $ 80 $ 3,192 Sale of Class B noncontrolling interests – net 1,788 — — — 1,788 Acquisition of subsidiary with noncontrolling interests — — 462 — 462 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 112 (257) (184) (4) (333) Other comprehensive loss — — (2) — (2) Related party contributions — — 12 11 23 Related party distributions — — (242) (7) (249) Changes in non-economic ownership interests — — — (12) (12) Differential membership investment contributions, net of distributions — 36 — — 36 Payments to Class B noncontrolling interest investors (23) — — — (23) Other — — (1) — (1) Balances, December 31, 2019 2,628 1,798 389 68 4,883 Sale of Class B noncontrolling interests – net 750 — — — 750 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 217 (282) (127) 4 (188) Other comprehensive income — — 2 — 2 Related party contributions — — — 7 7 Related party distributions — — (281) (9) (290) Changes in non-economic ownership interests — — — (12) (12) Differential membership investment contributions, net of distributions — 64 — — 64 Payments to Class B noncontrolling interest investors (45) — — — (45) Sale of differential membership interest — 179 — — 179 Other — — 1 — 1 Balances, December 31, 2020 3,550 1,759 (14) 58 5,353 Sale of Class B noncontrolling interest – net 893 — — — 893 Acquisition of subsidiaries with noncontrolling interests — 1,618 25 851 2,494 Related party note receivable — — 2 — 2 Net income (loss) attributable to noncontrolling interests 298 (313) 269 33 287 Other comprehensive income — — 2 — 2 Related party distributions — — (322) (102) (424) Changes in non-economic ownership interests — — — 127 127 Differential membership investment contributions, net of distributions — 39 — — 39 Payments to Class B noncontrolling interest investors (80) — — — (80) Sale of differential membership interest — 48 — — 48 Exercise of Class B noncontrolling interest buyout right (879) — — — (879) Other 1 (1) — (1) (1) Balances, December 31, 2021 $ 3,783 $ 3,150 $ (38) $ 966 $ 7,861 ____________________ (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interest in Silver State. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions by acquisition | The following table summarizes the final amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the June 2019 acquisition: (millions) Total consideration transferred $ 1,032 Identifiable assets acquired and liabilities assumed Cash $ 4 Accounts receivable, other receivables and prepaid expenses 159 Property, plant and equipment – net 350 Intangible assets – PPAs 1,110 Goodwill 25 Other noncurrent assets 133 Accounts payable, accrued expenses and other current liabilities (132) Other noncurrent liabilities (155) Noncontrolling interest (462) Total net identifiable assets, at fair value $ 1,032 The following table summarizes the preliminary amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the August 2021 acquisition: (millions) Total consideration transferred $ 815 Identifiable assets acquired and liabilities assumed Cash $ 18 Accounts receivable, inventory and prepaid expenses 14 Property, plant and equipment – net 191 Intangible assets – PPAs 432 Goodwill 179 Other noncurrent assets 1 Accounts payable, accrued expenses and other current liabilities (8) Other noncurrent liabilities (12) Total net identifiable assets, at fair value $ 815 The following table summarizes the preliminary amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the October 2021 acquisition: (millions) Total consideration transferred $ 585 Identifiable assets acquired and liabilities assumed Cash $ 4 Accounts receivable, inventory and prepaid expenses 11 Property, plant and equipment – net 560 Intangible assets – PPAs 42 Goodwill 33 Investments in equity method investees 66 Other noncurrent assets 19 Accounts payable, accrued expenses and other current liabilities (8) Other noncurrent liabilities (20) Noncontrolling interests (122) Total net identifiable assets, at fair value $ 585 In connection with the asset acquisition of Star Moon Holdings, NEP recorded the following balances: (millions) Total consideration transferred $ 858 Identifiable assets acquired and liabilities assumed Cash $ 21 Accounts receivable, inventory and prepaid expenses 17 Due from related parties (a) 1,015 Property, plant and equipment – net 3,695 Intangible assets – PPAs 107 Other noncurrent assets 48 Accounts payable, accrued expenses and other current liabilities (a) (1,038) Asset retirement obligation (70) Intangible liabilities (179) Other noncurrent liabilities (65) Redeemable noncontrolling interests (b) (321) Noncontrolling interests (2,372) Total net identifiable assets $ 858 ____________________ (a) Due from related parties reflects the amounts due from NEER which will be used to pay accounts payable and accrued expenses related to the construction of the projects acquired. |
Business Acquisition, Financial Statement Information | The amounts of revenues, operating income, net income and net income attributable to NEP included in NEP's consolidated statements of income related to the August 2021 acquisition, the October 2021 acquisition and the Coram II acquisition for the periods after the respective closings through December 31, 2021 are as follows: (millions) Revenues $ 25 Operating income $ 1 Net income $ — Net income attributable to NEP $ 3 |
Pro forma information | NEP’s pro forma results of operations in the combined entity had the August 2021 acquisition, the October 2021 acquisition and the Coram II acquisition been completed on January 1, 2020 are as follows: Years Ended December 31, 2021 2020 (millions) Unaudited pro forma results of operations: Pro forma revenues $ 1,068 $ 1,028 Pro forma operating income $ 248 $ 268 Pro forma net income (loss) $ 412 $ (256) Pro forma net income (loss) attributable to NEP $ 143 $ (48) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of income tax expense (benefit) are as follows: Years Ended December 31, 2021 2020 2019 (millions) Federal: Current $ 1 $ 5 $ — Deferred 32 (21) (20) Total federal 33 (16) (20) State: Current 1 2 — Deferred 14 (5) (6) Total state 15 (3) (6) Total income tax expense (benefit) $ 48 $ (19) $ (26) |
Schedule of reconciliation of U.S. federal income tax at the statutory rate to income tax expense | A reconciliation of U.S. federal income tax at the statutory rate to the actual income taxes is as follows: Years Ended December 31, 2021 2020 2019 (millions) Income tax expense (benefit) at U.S. statutory rate of 21% $ 99 $ (54) $ (90) Increases (reductions) resulting from: Taxes attributable to noncontrolling interests (59) 41 70 State income taxes, net of federal tax benefit 12 (3) (5) Tax credits (2) (3) (2) Other (2) — 1 Income tax expense (benefit) $ 48 $ (19) $ (26) |
Deferred tax assets and liabilities | The income tax effects of temporary differences giving rise to NEP's deferred income tax liabilities and assets are as follows: December 31, 2021 2020 (millions) Deferred tax liabilities: Investment in partnership (a) $ — $ (20) Total deferred tax liabilities — (20) Deferred tax assets: Net operating loss carryforwards 284 255 Investment in partnership (a) 23 — Tax credit carryforwards 13 10 Capital loss carryforward — 3 Valuation allowance (4) (4) Total deferred tax assets 316 264 Net deferred income taxes $ 316 $ 244 ____________________ (a) At December 31, 2021 and 2020, includes a deferred tax asset of approximately $4 million and $6 million, respectively, of interest limitation carryforward with an indefinite expiration period. Deferred tax assets and liabilities included on NEP's consolidated balance sheets are as follows: December 31, 2021 2020 (millions) Deferred income taxes – noncurrent assets $ 322 $ 249 Noncurrent other liabilities (6) (5) Net deferred income taxes $ 316 $ 244 |
Components of deferred tax assets relating to operating loss and tax credit carryforwards | The components of deferred tax assets, before valuation allowance, relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2021 are as follows: Amount Expiration Dates (millions) Net operating loss carryforwards: Federal $ 256 2034 – 2037 State 28 2028 – 2041 Total net operating loss carryforwards $ 284 (a) Tax credit carryforwards $ 13 2022 – 2041 ____________________ (a) Includes approximately $111 million and $3 million of federal and state, respectively, net operating loss carryforwards with an indefinite expiration period. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the fair values of derivative instruments designated as cash flow hedging instruments included in balance sheets | The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at December 31, 2021 and 2020, as required by disclosure rules, as well as the location of the net derivative positions, based on the expected timing of future payments, on NEP's consolidated balance sheets. December 31, 2021 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 17 $ — $ (10) $ 7 Liabilities: Interest rate contracts $ — $ 631 $ — $ (10) $ 621 Net fair value by balance sheet line item: Current other assets $ — Noncurrent other assets 7 Total derivative assets $ 7 Current derivative liabilities $ 26 Noncurrent derivative liabilities 595 Total derivative liabilities $ 621 December 31, 2020 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 47 $ — $ (47) $ — Liabilities: Interest rate contracts $ — $ 849 $ — $ (47) $ 802 Net fair value by balance sheet line item: Current derivative liabilities $ 20 Noncurrent derivative liabilities 782 Total derivative liabilities $ 802 ____________________ (a) Includes the effect of the contractual ability to settle contracts under master netting arrangements. |
Schedule of gains (losses) related to cash flow hedges | Gains (losses) related to NEP's interest rate contracts are recorded in NEP's consolidated financial statements as follows: Years Ended December 31, 2021 2020 2019 (millions) Interest rate contracts: Gains reclassified from AOCI to interest expense $ — $ — $ 5 Gains (losses) recognized in interest expense $ 168 $ (395) $ (373) |
Non-Derivative Fair Value Mea_2
Non-Derivative Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: December 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ 3 $ — $ 3 $ 2 $ — $ 2 Total assets $ 3 $ — $ 3 $ 2 $ — $ 2 |
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: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (millions) Long-term debt, including current maturities (a) $ 5,327 $ 5,529 $ 3,388 $ 3,529 ____________________ (a) At December 31, 2021 and December 31, 2020, approximately $5,506 million and $3,503 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). At December 31, 2021, approximately $1,188 million of the fair value relates to the 2020 convertible notes and the 2021 convertible notes and is estimated using Level 2. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following at December 31: 2021 2020 Range of Useful (millions) Power-generation assets (a) $ 10,439 $ 6,762 3 – 35 Pipeline assets, including temporary rights-of-way 957 948 25 – 50 Land improvements and buildings 525 399 3 – 35 Land, including perpetual rights-of-way 102 60 Construction work in progress 736 159 Other depreciable assets 365 278 3 – 35 Property, plant and equipment, gross 13,124 8,606 Accumulated depreciation (1,707) (1,443) Property, plant and equipment – net $ 11,417 $ 7,163 ___________________________ (a) Approximately 90% of power generation assets represent machinery and equipment used to generate electricity with a 35-year depreciable life. |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized information for this equity method investee | Summarized information for these equity method investees is as follows: 2021 2020 2019 (millions) Revenues $ 334 $ 244 $ 213 Operating income $ 164 $ 142 $ 124 Net income (a) $ 261 $ 151 $ 67 ________________________ (a) Includes the earnings from equity method investee related to Meade's ownership interest in CPL and the related expansion subsequent to the Meade acquisition in November 2019. December 31, 2021 December 31, 2020 (millions) Current assets $ 186 $ 160 Noncurrent assets (a) $ 5,073 $ 4,297 Current liabilities $ 85 $ 84 Noncurrent liabilities $ 1,456 $ 1,011 NEP's share of underlying equity in the equity method investees $ 2,063 $ 1,915 Difference between investment carrying amounts and underlying equity in net assets (b) (167) (101) NEP's investment carrying amounts $ 1,896 $ 1,814 ________________________ (a) Includes the equity method investment related to Meade's ownership interest in the CPL and related expansion project. (b) Substantially all of the difference between the investment carrying amount and the underlying equity in net assets is being amortized over the life of the related projects. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Carrying value and future principal payments of long-term debt | The carrying value of NEP’s long-term debt consists of the following: December 31, 2021 2020 Maturity Balance Weighted-Average Balance Weighted-Average (millions) (millions) NEP: Senior unsecured convertible notes – fixed (a) 2024 – 2025 $ 1,100 — % $ 536 — % NEP OpCo: Senior unsecured notes – fixed (b) 2024 – 2027 1,800 4.22 % $ 1,800 4.22 % Revolving credit facility – variable (a)(c) 2026 554 1.61 % — Project level: Senior secured limited-recourse debt – fixed 2033 21 4.52 % 23 4.52 % Senior secured limited-recourse debt – variable (c)(d) 2026 – 2032 1,544 1.55 % 874 1.81 % Bank loan (c) 2023 205 1.90 % 205 1.90 % Other long-term debt – variable 2026 – 2031 154 2.16 % — Unamortized debt issuance costs and discount (51) (50) Total long-term debt 5,327 3,388 Less current portion of long-term debt 33 12 Long-term debt, excluding current portion $ 5,294 $ 3,376 ________________________ (a) See additional discussion of the convertible notes and the NEP OpCo credit facility below. (b) The NEP OpCo senior unsecured notes are absolutely and unconditionally guaranteed, on a senior unsecured basis, by NEP and a subsidiary of NEP OpCo. (c) Variable rate is based on an underlying index plus a margin. (d) Interest rate contracts, primarily swaps, have been entered into for a majority of these debt issuances. See Note 5. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Reconciliation of NEP's basic and diluted earnings per unit | The reconciliation of NEP's basic and diluted earnings (loss) per unit is as follows: Years Ended December 31, 2021 2020 2019 (millions, except per unit amounts) Numerator: Net income (loss) attributable to NEP – basic $ 137 $ (55) $ (88) Adjustments for convertible notes and preferred units (a) — — — Net income (loss) attributable to NEP used to compute diluted earnings per unit $ 137 $ (55) $ (88) Denominator: Weighted-average number of common units outstanding – basic 77.2 68.4 58.8 Effect of dilutive convertible notes and preferred units (a) 0.2 — — Weighted-average number of common units outstanding and assumed conversions 77.4 68.4 58.8 Earnings (loss) per unit attributable to NEP: Basic $ 1.77 $ (0.81) $ (1.51) Assuming dilution $ 1.77 $ (0.81) $ (1.51) ____________________ (a) Due to the net losses incurred during the years ended December 31, 2020 and 2019, the weighted-average number of common units issuable pursuant to the convertible notes and preferred units totaling approximately 7.5 million and 17.0 million, respectively, were not included in the calculation of diluted earnings per unit due to their antidilutive effect. |
Schedule of Investments in and Advances to Affiliates, Schedule of Investments | During 2021, 2020 and 2019, subsidiaries of NEP sold Class B noncontrolling membership interests in NEP Renewables II, NEP Pipelines, STX Midstream, Genesis Holdings and NEP Renewables III as described below: NEP Renewables II NEP Pipelines STX Midstream Genesis Holdings NEP Renewables III Underlying projects/pipelines Renewable energy projects with a combined net generating capacity of approximately 1,192 MW Equity method interest in a natural gas pipeline located in Pennsylvania Seven natural gas pipeline assets located in Texas Renewable energy projects with a combined net generating capacity of approximately 1,124 MW Renewable energy projects with a combined net generating capacity of approximately 1,260 MW Date of sale June 11, 2019 November 13, 2019 December 4, 2019 December 18, 2020 December 28, 2021 Gross proceeds $900 million $168 million $750 million $1,243 million (a) $408 million (b) Initial allocation of distributable cash to Class B investors 5% 1% 12.5% 25% (a) 65% (b) Period for initial allocation 6 years 6 years 4 years 10 years 10 years Period for initial allocation if minimum buyouts have not occurred 4.5 years 5 years 3.5 years 6.75 years 6 years Allocation of distributable cash to Class B investors after initial allocation period 99% 99% 75% (c) 80% (a) 99% Date buyout period begins December 11, 2022 May 13, 2023 December 4, 2022 December 18, 2025 December 28, 2026 Buyout right timing (d) Periodically, and for partial interests between years 3.5 and 6 Periodically, and for partial interests between years 3.5 and 6.5 Periodically, and for partial interests between years 3 and 7 Periodically, and for partial interests between years 5 and 10 Periodically, and for partial interests between years 5 and 10 Percentage of buyout price that can be paid in NEP non-voting common units at current market price (e) 70% 100% 70% 100% 100% ____________________ (a) At December 31, 2020, NEP retained certain Class B membership interests in Genesis Holdings which were sold to the Class B investors for approximately $493 million at a final funding in June 2021. Prior to the final Class B funding, NEP received approximately 83% of Genesis Holdings’ cash distributions and the third-party investors received 17%. The allocation of distributable cash to Class B investors increases to 99% if NEP has not exercised certain buyout rights by September 18, 2027. (b) At December 31, 2021, NEP retained certain Class B membership interests in NEP Renewables III which will be sold to the Class B investors for approximately $408 million at a final funding expected to occur by the end of the second quarter of 2022. Until the final Class B funding, NEP will receive approximately 67.5% of NEP Renewables III's cash distributions and the third-party investors will receive 32.5%. (c) Increases to 95% if NEP has not exercised its entire buyout right by December 4, 2025. (d) The buyout right is subject to certain limitations and/or extensions in the respective agreements, including, but not limited to, NEP being able to purchase a maximum of the Class B units at anniversaries specified in certain of the agreements. (e) NEP may elect to pay the buyout price in NEP non-voting common units or cash (or any combination thereof), subject to conditions and limitations set forth in the applicable agreements. Percentages shown represent the maximum percentages NEP expects it can pay in NEP non-voting common units without the acquiescence of the Class B investor, subject to applicable closing conditions. Holders of the NEP non-voting common units will have the right to receive pro rata quarterly cash distributions and the right to convert, subject to certain limitations, the NEP non-voting common units into NEP common units on a one-for-one basis. The specified percentage of the buyout price for the Class B noncontrolling interests in STX Midstream are payable in NEP common units. |
Schedule of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) Net Unrealized Other Comprehensive Total (millions) Balances, December 31, 2018 $ 6 $ (24) $ (18) Amounts reclassified from AOCI to interest expense (6) — (6) Other comprehensive income related to equity method investee — 2 2 Net other comprehensive income (loss) (6) 2 (4) Balances, December 31, 2019 — (22) (22) Other comprehensive income related to equity method investee — 2 2 Balances, December 31, 2020 — (20) (20) Other comprehensive income related to equity method investee — 2 2 Balances, December 31, 2021 $ — $ (18) $ (18) AOCI attributable to noncontrolling interest, December 31, 2021 $ — $ (10) $ (10) AOCI attributable to NextEra Energy Partners, December 31, 2021 $ — $ (8) $ (8) |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) | 12 Months Ended |
Dec. 31, 2021pipeline | |
Schedule of Limited Partnership Activity [Line Items] | |
Number of natural gas pipeline assets acquired | 7 |
NEP OpCo [Member] | |
Schedule of Limited Partnership Activity [Line Items] | |
Noncontrolling interest, percent ownership | 45.30% |
Noncontrolling interest, percent ownership by noncontrolling owners | 54.70% |
Summary of Significant Accoun_4
Summary of Significant Accounting and Reporting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021USD ($) | Dec. 31, 2021USD ($)projectelectric_generation_facilitypipeline | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2021USD ($) | |
Accounting Policies [Line Items] | |||||
Restricted Cash, Current | $ 4,000,000 | $ 4,000,000 | |||
Payments of Debt Issuance Costs | $ 12,000,000 | 10,000,000 | |||
Number of wind generation facilities | electric_generation_facility | 32 | ||||
Convertible Investment Tax Credit, Net | $ 448,000,000 | 400,000,000 | |||
Convertible Investment Tax Credits Included In Other Receivables | 124,000,000 | ||||
Convertible Investment Tax Credit, Accounts Payable And Accrued Expenses | 100,000,000 | ||||
Convertible Investment Tax Credit, Other Current Liabilities | 12,000,000 | ||||
Convertible Investment Tax Credit, Due To Related Parties, Current | 12,000,000 | ||||
Allowance for doubtful accounts | 0 | ||||
Impairment of intangible assets, finite-lived | 0 | 0 | |||
Goodwill reduction | $ 0 | ||||
Amortization expense | 17,000,000 | 17,000,000 | $ 17,000,000 | ||
Intangible amortization – PPAs | 117,000,000 | 103,000,000 | 72,000,000 | ||
Amortization next twelve months | 17,000,000 | ||||
Amortization expense - 2020 | 17,000,000 | ||||
Amortization expense - 2021 | 17,000,000 | ||||
Amortization expense - 2022 | 17,000,000 | ||||
Amortization expense - 2023 | 17,000,000 | ||||
Amortization of deferred financing costs | 11,000,000 | 11,000,000 | 11,000,000 | ||
Accretion expense | $ 7,000,000 | 7,000,000 | 6,000,000 | ||
Write off of Deferred Debt Issuance Cost | 4,000,000 | ||||
Proceeds from Issuance of Senior Long-term Debt | 600,000,000 | ||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 64,000,000 | $ 64,000,000 | |||
Number Of Solar Projects | project | 7 | ||||
Contingent reacquisition amount (up to) | $ 204,000,000 | ||||
Contingent return proceeds (up to) | 117,000,000 | ||||
Amortization of Intangible Liability, Expected Amortization For The Next Five Years, Annual Amount | 13,000,000 | ||||
Other Noncurrent Liabilities [Member] | |||||
Accounting Policies [Line Items] | |||||
Intangible Liability | 179,000,000 | ||||
Foreign Sales [Member] | |||||
Accounting Policies [Line Items] | |||||
Revenue from contract with customer | $ 141,000,000 | 122,000,000 | 125,000,000 | ||
Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Useful life of property, plant, and equipment | 3 years | ||||
Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Useful life of property, plant, and equipment | 50 years | ||||
Non Affiliated Party [Member] | |||||
Accounting Policies [Line Items] | |||||
Number Of Pipelines | pipeline | 1 | ||||
2021 Acquisitions | |||||
Accounting Policies [Line Items] | |||||
Additional AROs established | $ 101,000,000 | ||||
2019 Acquisitions | |||||
Accounting Policies [Line Items] | |||||
Additional AROs established | $ 38,000,000 | ||||
Pacific Gas | Revenue Benchmark [Member] | Customer Concentration Risk | |||||
Accounting Policies [Line Items] | |||||
Percentage of consolidated revenue, by customer | 12.00% | ||||
Electric Company and Mex Gas Supply S.L. | Revenue Benchmark [Member] | Customer Concentration Risk | |||||
Accounting Policies [Line Items] | |||||
Percentage of consolidated revenue, by customer | 14.00% | ||||
Customer Relationships [Member] | NET Holdings Management, LLC [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life, in years | 40 years | ||||
Power Purchase Agreements [Member] | |||||
Accounting Policies [Line Items] | |||||
Amortization next twelve months | $ 160,000,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 295,000,000 | 177,000,000 | |||
NEP OpCo [Member] | |||||
Accounting Policies [Line Items] | |||||
Noncontrolling interest, percent ownership by noncontrolling owners | 54.70% | ||||
Non Affiliated Party [Member] | |||||
Accounting Policies [Line Items] | |||||
Noncontrolling interest, percent ownership by noncontrolling owners | 10.00% | ||||
NEER [Member] | |||||
Accounting Policies [Line Items] | |||||
Noncontrolling interest, percent ownership by noncontrolling owners | 50.00% | ||||
Silver State South Solar, LLC [Member] | |||||
Accounting Policies [Line Items] | |||||
Noncontrolling interest, percent ownership by noncontrolling owners | 50.00% | ||||
NextEra Energy Partners GP, Inc. | |||||
Accounting Policies [Line Items] | |||||
Noncontrolling interest | $ 10,000 | $ 10,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting and Reporting Policies - Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Sale of Class B noncontrolling interest – net | $ 890 | $ 746 | $ 1,786 |
Acquisition of subsidiary with noncontrolling interests | 2,494 | ||
Related party note receivable | 2 | 2 | 2 |
Net Income (Loss) Attributable to Noncontrolling Interest | (287) | 188 | 333 |
Other comprehensive income | 2 | 2 | (4) |
Related party contributions | 7 | 23 | |
Related party distributions | (424) | (290) | (249) |
Changes in non-economic ownership interests | 127 | (12) | (12) |
Exercise of Class B noncontrolling interest buyout right | (879) | ||
Other | (1) | ||
Noncontrolling Ownership Interests In Subsidiaries [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balances, beginning of period | 3,550 | 2,628 | 751 |
Sale of Class B noncontrolling interest – net | 893 | 750 | 1,788 |
Net Income (Loss) Attributable to Noncontrolling Interest | 298 | 217 | 112 |
Payments to Class B noncontrolling interest investors | (80) | (45) | (23) |
Exercise of Class B noncontrolling interest buyout right | (879) | ||
Other | 1 | ||
Balances, end of period | 3,783 | 3,550 | 2,628 |
Differential Membership Interests [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balances, beginning of period | 1,759 | 1,798 | 2,019 |
Acquisition of subsidiary with noncontrolling interests | 1,618 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (313) | (282) | (257) |
Differential membership investment contributions, net of distributions | 39 | 64 | 36 |
Sale of differential membership interest | 48 | 179 | |
Other | (1) | ||
Balances, end of period | 3,150 | 1,759 | 1,798 |
Noncontrolling Indirect Noncontrolling Ownership Interest | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balances, beginning of period | (14) | 389 | 342 |
Acquisition of subsidiary with noncontrolling interests | 25 | 462 | |
Related party note receivable | (2) | 2 | 2 |
Net Income (Loss) Attributable to Noncontrolling Interest | 269 | (127) | (184) |
Other comprehensive income | 2 | 2 | (2) |
Related party contributions | 0 | 12 | |
Related party distributions | (322) | (281) | (242) |
Changes in non-economic ownership interests | 0 | 0 | 0 |
Other | 1 | (1) | |
Balances, end of period | (38) | (14) | 389 |
Other Noncontrolling Interest [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balances, beginning of period | 58 | 68 | 80 |
Acquisition of subsidiary with noncontrolling interests | 851 | ||
Related party note receivable | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 33 | 4 | (4) |
Other comprehensive income | 0 | 0 | 0 |
Related party contributions | 7 | 11 | |
Related party distributions | (102) | (9) | (7) |
Changes in non-economic ownership interests | 127 | (12) | (12) |
Other | 0 | ||
Balances, end of period | 966 | 58 | 68 |
Non-controlling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balances, beginning of period | 5,353 | 4,883 | 3,192 |
Sale of Class B noncontrolling interest – net | 893 | 750 | 1,788 |
Acquisition of subsidiary with noncontrolling interests | 462 | ||
Related party note receivable | (2) | 2 | 2 |
Net Income (Loss) Attributable to Noncontrolling Interest | 287 | (188) | (333) |
Other comprehensive income | 2 | 2 | (2) |
Related party contributions | 7 | 23 | |
Related party distributions | (424) | (290) | (249) |
Changes in non-economic ownership interests | 127 | (12) | (12) |
Differential membership investment contributions, net of distributions | 39 | 64 | 36 |
Payments to Class B noncontrolling interest investors | (80) | (45) | (23) |
Sale of differential membership interest | (48) | 179 | |
Balances, end of period | 7,861 | 5,353 | 4,883 |
Non-controlling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Sale of Class B noncontrolling interest – net | 893 | 750 | 1,788 |
Related party note receivable | 2 | 2 | 2 |
Other comprehensive income | 2 | 2 | (2) |
Related party contributions | 7 | 23 | |
Related party distributions | (424) | (290) | (249) |
Changes in non-economic ownership interests | 127 | (12) | (12) |
Other | $ (1) | $ 1 | $ (1) |
Acquisitions - Additional Infor
Acquisitions - Additional Information - 2019 Acquisition (Details) $ in Millions | Jun. 11, 2019USD ($)solar_generation_facilityMW | Nov. 30, 2019USD ($)mi | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||
Investments in equity method investees | $ 1,896 | $ 1,814 | ||
June 2019 Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 1,020 | |||
Property, plant and equipment – net | 350 | |||
Noncontrolling interest | 462 | |||
Working capital | $ 12 | |||
Ashtabula Wind II, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Generating capacity (mw) | MW | 120 | |||
Garden Wind, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Generating capacity (mw) | MW | 150 | |||
White Oak Energy Holdings, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
White Oak Energy LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Generating capacity (mw) | MW | 150 | |||
Rosmar Holdings, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Generating capacity (mw) | MW | 132 | |||
Rosmar Holdings, LLC [Member] | Marshall And Roswell [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, percent ownership by noncontrolling owners | 49.99% | |||
Number of solar generation facilities | solar_generation_facility | 2 | |||
Silver State South Solar, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 49.99% | |||
Generating capacity (mw) | MW | 250 | |||
Meade Pipeline Investment, LLC [Member] | Meade Pipeline Co LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 1,280 | |||
Investments in equity method investees | 1,296 | |||
Business Combination, Estimated Future Capital Contribution | $ 90 | |||
Meade Pipeline Investment, LLC [Member] | Meade Pipeline Co LLC [Member] | Central Penn Line [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, percent ownership by noncontrolling owners | 39.20% | |||
Central Penn Line [Member] | Meade Pipeline Co LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Length Of Natural Gas Pipeline | mi | 185 | |||
Central Penn Line [Member] | Meade Pipeline Co LLC [Member] | Central Penn Line [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, percent ownership by noncontrolling owners | 40.00% |
Acquisitions - 2020 Acquisition
Acquisitions - 2020 Acquisitions (Details) $ in Millions | Dec. 18, 2020USD ($)MW |
Wilmot Energy Center, LLC [Member] | |
Business Acquisition [Line Items] | |
Percentage of interest acquired | 100.00% |
Generating capacity (mw) | 100 |
Renewable energy assets, power capacity (megawatts) | 30 |
Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Percentage of interest acquired | 100.00% |
Total consideration transferred | $ | $ 374 |
Working capital | $ | 4 |
Equity Method Investment | $ | 223 |
Property, plant and equipment – net | $ | 137 |
Intangible assets – PPAs | $ | $ 18 |
Pine Brooke Class A Holdings, LLC | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Noncontrolling interest, percent ownership by noncontrolling owners | 40.00% |
Soldier Creek Wind, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 300 |
Ponderosa Wind, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 200 |
Blue Summit III Wind [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 200 |
Saint Solar, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 100 |
Taylor Creek Solar, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 75 |
Harmony Florida Solar, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 75 |
Sanford Airport Solar, LLC [Member] | Pine Brooke Class A Holdings, LLC | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | 49 |
Acquisitions - August 2021 Acqu
Acquisitions - August 2021 Acquisitions (Details) $ in Millions | 1 Months Ended |
Aug. 31, 2021USD ($)MW | |
August 2021 Acquisition | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Excluding Closing Adjustments | $ | $ 733 |
Business Combination, Consideration Transferred, Closing Adjustments, Pre-Acquisition Debt and Make Whole Costs | $ | 55 |
Business Combination, Consideration Transferred, Closing Adjustments, Working Capital | $ | 27 |
Business Combination, Consideration Transferred, Working Capital, Cash Payment | $ | $ 18 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount, Period To Be Recognized | 15 years |
Indirect Subsidiary | |
Business Acquisition [Line Items] | |
Percentage of interest acquired | 100.00% |
Highview Power Holdings, LLC | Indirect Subsidiary | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | MW | 150 |
Brookfield Windstar Holding, LLC | Indirect Subsidiary | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | MW | 120 |
Brookfield Coram Wind Development, LLC | Indirect Subsidiary | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | MW | 22 |
BAIF Granite Holdings, LLC | Indirect Subsidiary | |
Business Acquisition [Line Items] | |
Generating capacity (mw) | MW | 99 |
Acquisitions - October 2021 Acq
Acquisitions - October 2021 Acquisition (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021USD ($)wind_generation_facilityMW | Aug. 31, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |||||
Proceeds from differential membership investors | $ | $ 74 | $ 94 | $ 66 | ||
October 2021 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount, Period To Be Recognized | 15 years | ||||
Indirect Subsidiary of NEER, October 2021 Wind And Solar Generation Acquisition One | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 589 | ||||
Proceeds from differential membership investors | $ | $ 563 | ||||
Proceeds from Sale of Interest in Partnership Unit, Working Capital | $ | 22 | ||||
Assumption of Noncontrolling Interest | $ | $ 270 | ||||
HW CA Holdings, LLC | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 162 | ||||
Percentage of interest acquired | 100.00% | ||||
Dogwood Wind Holdings, LLC | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 300 | ||||
Percentage of interest acquired | 100.00% | ||||
Number of Generation Facilities | wind_generation_facility | 2 | ||||
Southwest Solar Holdings | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 5 | ||||
Percentage of interest acquired | 100.00% | ||||
Shaw Creek Solar Holdings | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 75 | ||||
Percentage of interest acquired | 33.30% | ||||
Nutmeg Solar Holdings | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 20 | ||||
Percentage of interest acquired | 33.30% | ||||
Solar Holdings Portfolio Twelve, LLC | Indirect Subsidiary | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest acquired | 100.00% | ||||
Solar Holdings Portfolio Twelve, LLC | Indirect Subsidiary | Solar Holdings Portfolio Twelve, LLC | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling interest, percent ownership by noncontrolling owners | 33.30% | ||||
Whitney Point Solar | Solar Holdings Portfolio Twelve, LLC | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 40 | ||||
Westside Solar | Solar Holdings Portfolio Twelve, LLC | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 40 | ||||
DG Portfolio 2019 Portfolio | Solar Holdings Portfolio Twelve, LLC | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 217 | ||||
DG Waipio Portfolio | Solar Holdings Portfolio Twelve, LLC | |||||
Business Acquisition [Line Items] | |||||
Generating capacity (mw) | 13 |
Acquisitions - December 2021 Ac
Acquisitions - December 2021 Acquisition (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($)MW | Dec. 31, 2021USD ($)MW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | ||||
Goodwill | $ | $ 891 | $ 891 | $ 609 | |
Proceeds from differential membership investors | $ | 74 | $ 94 | $ 66 | |
Indirect Subsidiary, Coram II Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ | 128 | |||
Business Combination, Consideration Transferred, Other | $ | 9 | |||
Existing debt | $ | 155 | |||
Property, plant and equipment – net | $ | 133 | 133 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Long-term Debt | $ | 72 | 72 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | $ | 155 | 155 | ||
Other noncurrent assets | $ | 11 | 11 | ||
Goodwill | $ | $ 70 | 70 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount, Period To Be Recognized | 15 years | |||
Star Moon Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment – net | $ | $ 3,695 | 3,695 | ||
Other noncurrent assets | $ | 48 | 48 | ||
Proceeds from differential membership investors | $ | 849 | |||
Proceeds from Sale of Interest in Partnership Unit, Working Capital | $ | 9 | |||
Assumption of Noncontrolling Interest | $ | $ 910 | $ 910 | ||
Indirect Subsidiary | Indirect Subsidiary, Coram II Acquisition | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 102 | 102 | ||
Indirect Subsidiary | Star Moon Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | 100.00% | ||
Indirect Subsidiary | Star Moon Holdings, LLC | Star Moon Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, percent ownership by noncontrolling owners | 50.00% | 50.00% | ||
Indirect Subsidiary | White Mesa Wind | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 501 | 501 | ||
Indirect Subsidiary | Irish Creek Wind | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 301 | 301 | ||
Indirect Subsidiary | Hubbard Wind | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 300 | 300 | ||
Indirect Subsidiary | Cool Springs Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 213 | 213 | ||
Indirect Subsidiary | Cool Springs Solar | GEORGIA | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 40 | 40 | ||
Indirect Subsidiary | Little Blue Wind | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 251 | 251 | ||
Indirect Subsidiary | Dodge Flat Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 200 | 200 | ||
Indirect Subsidiary | Dodge Flat Solar | NEBRASKA | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 50 | 50 | ||
Indirect Subsidiary | Elora Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 150 | 150 | ||
Indirect Subsidiary | Quitman II Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 150 | 150 | ||
Indirect Subsidiary | Fish Springs Ranch Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 100 | 100 | ||
Indirect Subsidiary | Fish Springs Ranch Solar | NEBRASKA | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 25 | 25 | ||
Indirect Subsidiary | Minco Wind Energy III | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 107 | 107 | ||
Indirect Subsidiary | Ensign Wind Energy | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 99 | 99 | ||
Indirect Subsidiary | Borderlands Wind | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 99 | 99 | ||
Indirect Subsidiary | Quinebaug Solar | ||||
Business Acquisition [Line Items] | ||||
Generating capacity (mw) | 49 | 49 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 11, 2019 | Oct. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Identifiable assets acquired and liabilities assumed | |||||
Goodwill | $ 891 | $ 609 | |||
June 2019 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 1,032 | ||||
Identifiable assets acquired and liabilities assumed | |||||
Cash | 4 | ||||
Accounts receivable, other receivables and prepaid expenses | 159 | ||||
Property, plant and equipment – net | 350 | ||||
Goodwill | 25 | ||||
Other noncurrent assets | 133 | ||||
Accounts payable, accrued expenses and other current liabilities | (132) | ||||
Other noncurrent liabilities | (155) | ||||
Noncontrolling interest | (462) | ||||
Total net identifiable assets, at fair value | 1,032 | ||||
June 2019 Acquisition [Member] | Power Purchase Agreements [Member] | |||||
Identifiable assets acquired and liabilities assumed | |||||
Intangible assets – PPAs | $ 1,110 | ||||
August 2021 Acquisition | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 815 | ||||
Identifiable assets acquired and liabilities assumed | |||||
Cash | 18 | ||||
Accounts receivable, other receivables and prepaid expenses | 14 | ||||
Property, plant and equipment – net | 191 | ||||
Goodwill | 179 | ||||
Other noncurrent assets | 1 | ||||
Accounts payable, accrued expenses and other current liabilities | (8) | ||||
Other noncurrent liabilities | (12) | ||||
Total net identifiable assets, at fair value | 815 | ||||
August 2021 Acquisition | Power Purchase Agreements [Member] | |||||
Identifiable assets acquired and liabilities assumed | |||||
Intangible assets – PPAs | $ 432 | ||||
October 2021 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 585 | ||||
Identifiable assets acquired and liabilities assumed | |||||
Cash | 4 | ||||
Accounts receivable, other receivables and prepaid expenses | 11 | ||||
Property, plant and equipment – net | 560 | ||||
Intangible assets – PPAs | 42 | ||||
Goodwill | 33 | ||||
Investments in equity method investees | 66 | ||||
Other noncurrent assets | 19 | ||||
Accounts payable, accrued expenses and other current liabilities | (8) | ||||
Other noncurrent liabilities | (20) | ||||
Noncontrolling interest | (122) | ||||
Total net identifiable assets, at fair value | $ 585 | ||||
Star Moon Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | 858 | ||||
Identifiable assets acquired and liabilities assumed | |||||
Cash | 21 | ||||
Accounts receivable, other receivables and prepaid expenses | 17 | ||||
Property, plant and equipment – net | 3,695 | ||||
Due From Related Parties | 1,015 | ||||
Intangible assets – PPAs | 107 | ||||
Other noncurrent assets | 48 | ||||
Accounts payable, accrued expenses and other current liabilities | (1,038) | ||||
Asset retirement obligation | (70) | ||||
Intangible liabilities | (179) | ||||
Other noncurrent liabilities | (65) | ||||
Redeemable Noncontrolling Interest | (321) | ||||
Noncontrolling interest | (2,372) | ||||
Total net identifiable assets, at fair value | $ 858 |
Acquisitions - Financial Statem
Acquisitions - Financial Statement Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Business Acquisition [Line Items] | ||||
Revenues | [1] | $ 982 | $ 917 | $ 855 |
Operating income | 234 | 253 | 233 | |
NET INCOME (LOSS) | 424 | (238) | (404) | |
NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | 137 | $ (55) | $ (88) | |
August 2021, October 2021, Coram II Acquisition | ||||
Business Acquisition [Line Items] | ||||
Revenues | 25 | |||
Operating income | 1 | |||
NET INCOME (LOSS) | 0 | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | 3 | |||
2021 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Transaction Costs | $ 12 | |||
[1] | Includes related party revenues of approximately $42 million, $16 million and $8 million for 2021, 2020 and 2019, respectively. |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - August 2021, October 2021, Coram II Acquisition - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unaudited pro forma results of operations: | ||
Pro forma revenues | $ 1,068 | $ 1,028 |
Pro forma operating income | 248 | 268 |
Pro forma net income | 412 | (256) |
Pro forma net income (loss) attributable to NEP | $ 143 | $ (48) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Renewable Energy Sales [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customer | $ 704 | $ 684 | $ 624 |
Revenues over the remaining terms of the related contacts | 191 | ||
Natural Gas Transportation Services [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customer | 237 | $ 212 | $ 207 |
Revenues over the remaining terms of the related contacts | $ 1,800 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 10.00% | 7.00% | 6.00% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4 | ||
Deferred Tax Liability, State Taxes | $ 1 | $ 3 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal: | |||
Current | $ 1 | $ 5 | $ 0 |
Deferred | 32 | (21) | (20) |
Total federal | 33 | (16) | (20) |
State: | |||
Current | 1 | 2 | 0 |
Deferred | 14 | (5) | (6) |
Total state | 15 | (3) | (6) |
Income tax expense (benefit) | $ 48 | $ (19) | $ (26) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax to Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at U.S. statutory rate of 21% | $ 99 | $ (54) | $ (90) |
Increases (reductions) resulting from: | |||
Taxes attributable to noncontrolling interests | (59) | 41 | 70 |
State income taxes, net of federal tax benefit | 12 | (3) | (5) |
Tax credits | (2) | (3) | (2) |
Other | (2) | 0 | 1 |
Income tax expense (benefit) | $ 48 | $ (19) | $ (26) |
Income Taxes - Tax Effects, Def
Income Taxes - Tax Effects, Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax liabilities: | ||
Investment in partnership(a) | $ 0 | $ (20) |
Total deferred tax liabilities | 0 | (20) |
Deferred tax assets: | ||
Net operating loss carryforwards | 284 | 255 |
Investment in partnership | 23 | 0 |
Tax credit carryforwards | 13 | 10 |
Capital loss carryforward | 0 | 3 |
Valuation allowance | (4) | (4) |
Total deferred tax assets | 316 | 264 |
Net deferred income taxes | 316 | 244 |
Deferred Tax Asset, Interest Carryforward | $ 4 | $ 6 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred income taxes – noncurrent assets | $ 322 | $ 249 |
Noncurrent other liabilities | (6) | (5) |
Net deferred income taxes | $ 316 | $ 244 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Loss Carryforwards [Line Items] | |
Total net operating loss carryforwards | $ 284 |
Tax credit carryforwards | 13 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total net operating loss carryforwards | 256 |
Net operating loss carryforwards with an indefinite expiration period | 111 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total net operating loss carryforwards | 28 |
Net operating loss carryforwards with an indefinite expiration period | $ 3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Derivative instruments with contingent features assets, at fair value | $ 769 | $ 608 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 7,088 | $ 7,873 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ 6 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity - Fair Value of Derivative Instruments Included in Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | $ 7 | |
Fair value of derivative instruments, liabilities | 621 | $ 802 |
Current derivative liabilities | 26 | 20 |
Noncurrent derivative liabilities | 595 | 782 |
Current other assets | ||
Derivatives, Fair Value [Line Items] | ||
Current other assets | 0 | |
Noncurrent other assets | ||
Derivatives, Fair Value [Line Items] | ||
Noncurrent other assets | 7 | |
Current derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Current derivative liabilities | 20 | |
Noncurrent derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Noncurrent derivative liabilities | 782 | |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | (10) | (47) |
Fair value of derivative instruments, liabilities | (10) | (47) |
Derivative Asset, Not Subject to Master Netting Arrangement | 7 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | 621 | 802 |
Interest Rate Contract [Member] | Level 1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 0 | 0 |
Fair value of derivative instruments, liabilities | 0 | 0 |
Interest Rate Contract [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 17 | 47 |
Fair value of derivative instruments, liabilities | 631 | 849 |
Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 0 | 0 |
Fair value of derivative instruments, liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activity - Gains (Losses) Related to Cash Flow Hedges (Details) - Interest Expense [Member] - Interest Rate Contract [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense | $ 168 | $ (395) | $ (373) |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains reclassified from AOCI to interest expense | $ 0 | $ 0 | $ 5 |
Non-Derivative Fair Value Mea_3
Non-Derivative Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash equivalents | $ 3 | $ 2 |
Total assets | 3 | 2 |
Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 3 | 2 |
Total assets | 3 | 2 |
Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total assets | $ 0 | $ 0 |
Non-Derivative Fair Value Mea_4
Non-Derivative Fair Value Measurements - Carrying Value and Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 5,327 | $ 3,388 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | 5,529 | 3,529 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 5,506 | 3,503 |
Level 2 [Member] | Fair Value [Member] | Senior Unsecured Convertible Notes, 2021 and 2020 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 1,188 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 13,124 | $ 8,606 | |
Accumulated depreciation | (1,707) | (1,443) | |
Property, plant and equipment – net | 11,417 | 7,163 | |
Depreciation expense | 263 | 247 | $ 236 |
Net book value of NEP's assets serving as collateral | $ 5,300 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 50 years | ||
Power-generation assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 10,439 | $ 6,762 | |
Percentage of assets | 90.00% | ||
Useful life of property, plant, and equipment | 35 years | ||
Power-generation assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 3 years | 3 years | |
Power-generation assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 35 years | 35 years | |
Pipeline assets, including temporary rights of way [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 957 | $ 948 | |
Pipeline assets, including temporary rights of way [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 25 years | 25 years | |
Pipeline assets, including temporary rights of way [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 50 years | 50 years | |
Land improvements and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 525 | $ 399 | |
Land improvements and buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 3 years | 7 years | |
Land improvements and buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 35 years | 35 years | |
Land, including perpetual rights of way [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 102 | $ 60 | |
Construction work in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 736 | 159 | |
Other depreciable assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 365 | $ 278 | |
Other depreciable assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 3 years | 3 years | |
Other depreciable assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant, and equipment | 35 years | 35 years |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 11, 2019 | ||
Variable Interest Entity [Line Items] | |||||
Current assets | $ 1,410 | $ 414 | |||
Total other assets | 17,566 | 12,148 | |||
Current liabilities | 1,261 | 350 | |||
Liabilities, Noncurrent | 6,556 | 4,505 | |||
Revenues | [1] | 982 | 917 | $ 855 | |
Operating income | 234 | 253 | 233 | ||
Net income (loss) attributable to noncontrolling interests | 287 | (188) | (333) | ||
Investment in equity method investee | 1,896 | 1,814 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
Variable Interest Entity [Line Items] | |||||
Current assets | 186 | 160 | |||
Total other assets | 5,073 | 4,297 | |||
Current liabilities | 85 | 84 | |||
Liabilities, Noncurrent | 1,456 | 1,011 | |||
Revenues | 334 | 244 | 213 | ||
Operating income | 164 | 142 | 124 | ||
Net income (loss) attributable to noncontrolling interests | 261 | 151 | $ 67 | ||
NEP's share of underlying equity in the equity method investee | 2,063 | 1,915 | |||
Difference between investment carrying amount and underlying equity in net assets | (167) | (101) | |||
Investment in equity method investee | $ 1,896 | $ 1,814 | |||
Rosmar Holdings, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of interest acquired | 100.00% | ||||
Subsidiaries [Member] | Desert Sunlight Investment Holdings, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of interest acquired | 50.00% | ||||
Subsidiaries [Member] | Rosmar Holdings, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of interest acquired | 50.00% | ||||
Subsidiaries [Member] | Pine Brooke [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of interest acquired | 40.00% | ||||
Subsidiaries [Member] | October 2021 Acquisitions | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of interest acquired | 33.30% | ||||
[1] | Includes related party revenues of approximately $42 million, $16 million and $8 million for 2021, 2020 and 2019, respectively. |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)variable_interest_entityprojectequity_investmentelectric_generation_facilityMWshares | Dec. 31, 2020USD ($)variable_interest_entity | |
Variable Interest Entity [Line Items] | ||
Numbers of VIEs | variable_interest_entity | 16 | |
Number of equity investments | electric_generation_facility | 32 | |
Assets | $ 18,976 | $ 12,562 |
Total other assets | 17,566 | 12,148 |
Liabilities, Noncurrent | 6,556 | 4,505 |
Property, plant and equipment – net | 11,417 | 7,163 |
Long-term debt | 5,327 | 3,388 |
Liabilities | $ 7,817 | 4,855 |
Number Of Solar Projects | project | 7 | |
Subsidiary of NEP [Member] | Adelanto I, Adelanto II and McCoy [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of equity investments | equity_investment | 3 | |
Generating capacity (mw) | MW | 277 | |
Battery storage capacity (mw) | MW | 230 | |
Economic rights, percentage | 100.00% | |
NextEra Energy Operating Partners, LP [Member] | ||
Variable Interest Entity [Line Items] | ||
Total other assets | $ 47 | 10 |
Liabilities, Noncurrent | 21 | |
NextEra Energy Operating Partners, LP [Member] | Adelanto I, Adelanto II and McCoy [Member] | ||
Variable Interest Entity [Line Items] | ||
Percentage of interest acquired | 50.00% | |
Differential Membership Interests [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 9,740 | 5,299 |
Liabilities | $ 1,310 | $ 224 |
Noncontrolling Class B Interests [Member] | Variable Interest Entity, Primary Beneficiary [Member] | NEP Renewables, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Numbers of VIEs | variable_interest_entity | 5 | 5,000,000 |
Assets | $ 9,410 | |
Property, plant and equipment – net | 11,810 | |
Long-term debt | 2,480 | |
Liabilities | $ 1,502 | |
Rosmar, Silver State, Meade and Pine Brooke Holdings [Member] | Variable Interest Entity, Primary Beneficiary [Member] | NEP Renewables, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 4,749 | 2,694 |
Liabilities | $ 1,159 | $ 153 |
Class B Units, Series 1 [Member] | Partnership Interest [Member] | NextEra Energy Operating Partners, LP [Member] | Adelanto I, Adelanto II and McCoy [Member] | ||
Variable Interest Entity [Line Items] | ||
Business acquisition, equity issuable (in shares) | shares | 1,000,000 | |
Class B Units, Series 2 [Member] | Partnership Interest [Member] | NextEra Energy Operating Partners, LP [Member] | Adelanto I, Adelanto II and McCoy [Member] | ||
Variable Interest Entity [Line Items] | ||
Business acquisition, equity issuable (in shares) | shares | 1,000,000 | |
NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling interest, percent ownership | 45.30% | |
Noncontrolling interest, percent ownership by noncontrolling owners | 54.70% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 5,327 | $ 3,388 |
Unamortized debt issuance costs and discount | (51) | (50) |
Less current portion of long-term debt | 33 | 12 |
Long-term debt, excluding current portion | 5,294 | 3,376 |
Senior Notes [Member] | Senior Unsecured Convertible Notes - Fixed [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,100 | $ 536 |
Weighted-Average Interest Rate | 0.00% | 0.00% |
Senior Notes [Member] | Senior Unsecured Notes - Fixed [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,800 | $ 1,800 |
Weighted-Average Interest Rate | 4.22% | 4.22% |
Senior Notes [Member] | Limited Recourse Debt, Fixed [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 21 | $ 23 |
Weighted-Average Interest Rate | 4.52% | 4.52% |
Senior Notes [Member] | Limited Recourse Debt, Variable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,544 | $ 874 |
Weighted-Average Interest Rate | 1.55% | 1.81% |
Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 205 | $ 205 |
Weighted-Average Interest Rate | 1.90% | 1.90% |
Credit Facility [Member] | Revolving Credit Facility Due 2026 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 554 | $ 0 |
Weighted-Average Interest Rate | 1.61% | |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 154 | $ 0 |
Weighted-Average Interest Rate | 2.16% |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Feb. 28, 2022USD ($) | Jan. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
2022 | $ 33,000,000 | |||
2023 | 243,000,000 | |||
2024 | 1,329,000,000 | |||
2025 | 703,000,000 | |||
2026 | 1,905,000,000 | |||
Long-term debt | 5,327,000,000 | $ 3,388,000,000 | ||
Proceeds From Capped Call Of Convertible Debt | 30,000,000 | |||
Proceeds from Issuance of Senior Long-term Debt | 600,000,000 | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 64,000,000 | $ 64,000,000 | ||
Revolving Credit Facility | NEP OpCo [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 1,250,000,000 | |||
Revolving Credit Facility | South Texas Midstream Holdings, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 270,000,000 | |||
Revolving Credit Facility Due 2027 | NEP OpCo [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, amount outstanding | $ 86,000,000 | |||
Letter of Credit [Member] | NEP OpCo [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 400,000,000 | |||
Letter of Credit [Member] | Revolving Credit Facility Due 2026 | NEP OpCo [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 2,000,000,000 | |||
Total letters of credit | (117,000,000) | |||
Senior Loans [Member] | Pipeline Investment Holdings, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 915,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 45,000,000 | |||
Credit facility, amount outstanding | 816,000,000 | |||
Credit Facility [Member] | Revolving Credit Facility Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 554,000,000 | $ 0 | ||
Credit Facility [Member] | Minimum [Member] | Revolving Credit Facility Due 2026 | NEP OpCo [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Credit Facility [Member] | Maximum [Member] | Revolving Credit Facility Due 2026 | NEP OpCo [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.35% | |||
Common Unit [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion of Stock, Shares Converted | shares | 5.7 | |||
Senior Unsecured Convertible Notes - Fixed [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,100,000,000 | $ 536,000,000 | ||
Senior Unsecured Convertible Notes - Fixed [Member] | Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible, conversion ratio | 11.0492 | |||
Debt instrument, convertible, conversion price (dollars per unit) | $ / shares | $ 90.5043 | |||
Senior Unsecured Convertible Notes Due 2020 [Member] | Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible, conversion ratio | 13.1296 | |||
Debt instrument, convertible, conversion price (dollars per unit) | $ / shares | $ 76.1638 | |||
Senior Unsecured Convertible Notes 2017 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 500,000,000 | $ 300,000,000 | ||
Equity Option [Member] | Senior Unsecured Convertible Notes - Fixed [Member] | Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Capped call transaction, price risk option strike price | $ / shares | $ 90.5043 | |||
Capped call transaction, cap price | $ / shares | $ 113.1300 | |||
Payments for capped call transaction | $ 31,000,000 | |||
Equity Option [Member] | Senior Unsecured Convertible Notes Due 2020 [Member] | Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Capped call transaction, price risk option strike price | $ / shares | $ 76.1638 | |||
Capped call transaction, cap price | $ / shares | $ 120.5930 | |||
Payments for capped call transaction | $ 63,000,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 16, 2022USD ($) | Nov. 30, 2021USD ($)shares | Nov. 30, 2019shares | Nov. 30, 2017USD ($)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018MW | ||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Distributions to unitholders | [1] | $ (198) | $ (159) | $ (132) | |||||||
Issuance of units, gross proceeds | 56 | 360 | [2] | 42 | [2] | ||||||
Buyout of Class B noncontrolling interest investors | $ 265 | $ 0 | $ 0 | ||||||||
NEP Renewables, LLC [Member] | Third-Party Investors | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Generating capacity (mw) | MW | 1,388 | ||||||||||
Payments to Noncontrolling Interests, Aggregate Consideration | $ 885 | ||||||||||
Exercise of Class B noncontrolling interest buyout right, in units | shares | 7,253,580 | ||||||||||
Buyout of Class B noncontrolling interest investors | $ 265 | ||||||||||
Initial allocation of distributable cash to Class B investors | 15.00% | ||||||||||
Series A Convertible Preferred Units [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Conversion of Stock, Shares Converted | shares | 4,673,852 | 4,673,857 | 9,300,000 | ||||||||
Conversion Of Stock, Conversion Ratio | 1 | 1 | 1 | ||||||||
Preferred Units [Member] | Series A Convertible Preferred Units [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Sale of stock, number of shares issued in transaction | shares | 14,021,561 | ||||||||||
Sale of stock, aggregate purchase price | $ 550 | ||||||||||
ATM Program [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Units authorized to be issued, value | shares | 150,000,000 | ||||||||||
Issuance of units, in units | shares | 700,000 | 0 | 0 | ||||||||
Issuance of units, gross proceeds | $ 50 | ||||||||||
Stock issuance costs | 1 | ||||||||||
Limited Partner [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Distributions to unitholders | [1] | (198) | $ (154) | $ (115) | |||||||
Issuance of units, gross proceeds | $ 56 | $ 543 | [2] | $ 407 | [2] | ||||||
Limited Partner [Member] | Subsequent Event [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Distributions to unitholders | $ (59) | ||||||||||
[1] | Distributions per common unit were $2.6000, $2.2625 and $1.9675 for the years ended December 31, 2021, 2020 and 2019, respectively. | ||||||||||
[2] | In 2020, NEP issued 4.7 million NEP common units upon the conversion of preferred units on a one-for-one basis and issued approximately 5.7 million NEP common units upon the conversion of $300 million of convertible notes (see Note 13 – Preferred Units and Note 12). NEP recognized a deferred tax asset of approximately $59 million related to the issuance of NEP common units. In 2019, NEP converted approximately 9.3 million Series A convertible preferred units into NEP common units on a one-for-one basis and recognized a deferred tax asset of approximately $39 million related to the issuance of NEP common units. |
Equity - Basic and Diluted Earn
Equity - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) attributable to NEP – basic | $ 137 | $ (55) | $ (88) |
Adjustments for convertible notes and preferred units | 0 | 0 | 0 |
Net income (loss) attributable to NEP used to compute diluted earnings per unit | $ 137 | $ (55) | $ (88) |
Denominator: | |||
Weighted-average number of common units outstanding – basic (in shares) | 77.2 | 68.4 | 58.8 |
Effect of dilutive convertible notes and preferred unit (in shares) | 0.2 | 0 | 0 |
Weighted-average number of common units outstanding – assuming dilution (in shares) | 77.4 | 68.4 | 58.8 |
Earnings (loss) per unit attributable to NEP: | |||
Basic (usd per share) | $ 1.77 | $ (0.81) | $ (1.51) |
Assuming dilution (usd per share) | $ 1.77 | $ (0.81) | $ (1.51) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 7.5 | 17 |
Equity - Subsidiary Information
Equity - Subsidiary Information (Details) $ in Millions | Dec. 04, 2025 | Jun. 30, 2022USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2021USD ($)pipelineMW |
Related Party Transaction [Line Items] | ||||
Number of natural gas pipeline assets acquired | pipeline | 7 | |||
NEP Renewables II | ||||
Related Party Transaction [Line Items] | ||||
Renewable energy assets, power capacity (megawatts) | MW | 1,192 | |||
Gross proceeds | $ 900 | |||
Initial allocation of distributable cash to Class B investors | 5.00% | |||
Period for initial allocation | 6 years | |||
Period for initial allocation if minimum buyouts have not occurred | 4 years 6 months | |||
Allocation of distributable cash to Class B investors after initial allocation period | 99.00% | |||
Percentage of buyout price that can be paid in NEP non-voting common units at current market price | 70.00% | |||
NEP Renewables II | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 3 years 6 months | |||
NEP Renewables II | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 6 years | |||
NEP Pipelines | ||||
Related Party Transaction [Line Items] | ||||
Gross proceeds | $ 168 | |||
Initial allocation of distributable cash to Class B investors | 1.00% | |||
Period for initial allocation | 6 years | |||
Period for initial allocation if minimum buyouts have not occurred | 5 years | |||
Allocation of distributable cash to Class B investors after initial allocation period | 99.00% | |||
Percentage of buyout price that can be paid in NEP non-voting common units at current market price | 100.00% | |||
NEP Pipelines | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 3 years 6 months | |||
NEP Pipelines | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 6 years 6 months | |||
STX Midstream | ||||
Related Party Transaction [Line Items] | ||||
Number of natural gas pipeline assets acquired | pipeline | 7 | |||
Gross proceeds | $ 750 | |||
Initial allocation of distributable cash to Class B investors | 12.50% | |||
Period for initial allocation | 4 years | |||
Period for initial allocation if minimum buyouts have not occurred | 3 years 6 months | |||
Allocation of distributable cash to Class B investors after initial allocation period | 75.00% | |||
Percentage of buyout price that can be paid in NEP non-voting common units at current market price | 70.00% | |||
STX Midstream | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 3 years | |||
STX Midstream | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 7 years | |||
Genesis Holdings | ||||
Related Party Transaction [Line Items] | ||||
Number of natural gas pipeline assets acquired | pipeline | 1,124 | |||
Gross proceeds | $ 493 | $ 1,243 | ||
Initial allocation of distributable cash to Class B investors | 83.00% | 25.00% | ||
Period for initial allocation | 10 years | |||
Period for initial allocation if minimum buyouts have not occurred | 6 years 9 months | |||
Allocation of distributable cash to Class B investors after initial allocation period | 17.00% | 80.00% | ||
Percentage of buyout price that can be paid in NEP non-voting common units at current market price | 100.00% | |||
Genesis Holdings | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 5 years | |||
Genesis Holdings | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 10 years | |||
NEP Renewables III | ||||
Related Party Transaction [Line Items] | ||||
Number of natural gas pipeline assets acquired | pipeline | 1,260 | |||
Gross proceeds | $ 408 | |||
Initial allocation of distributable cash to Class B investors | 65.00% | |||
Period for initial allocation | 10 years | |||
Period for initial allocation if minimum buyouts have not occurred | 6 years | |||
Allocation of distributable cash to Class B investors after initial allocation period | 9900.00% | |||
Percentage of buyout price that can be paid in NEP non-voting common units at current market price | 100.00% | |||
NEP Renewables III | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 5 years | |||
NEP Renewables III | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Buyout right timing | 10 years | |||
Forecast | STX Midstream | ||||
Related Party Transaction [Line Items] | ||||
Allocation of distributable cash to Class B investors after initial allocation period | 95.00% | |||
Forecast | Genesis Holdings | ||||
Related Party Transaction [Line Items] | ||||
Percentage Of Distributions Received After Initial Allocation Period Increase | 99.00% | |||
Forecast | NEP Renewables III | ||||
Related Party Transaction [Line Items] | ||||
Gross proceeds | $ 408 | |||
Initial allocation of distributable cash to Class B investors | 67.50% | |||
Forecast | NEP Renewables III | Third-Party Investors | ||||
Related Party Transaction [Line Items] | ||||
Allocation of distributable cash to Class B investors after initial allocation period | 32.50% |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 7,707 | $ 7,066 | $ 5,538 |
Other Comprehensive Income (Loss), Net of Tax, Total | 2 | 2 | (4) |
Ending Balance | 10,838 | 7,707 | 7,066 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (20) | (22) | (18) |
Ending Balance | (18) | (20) | (22) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 6 |
Amounts reclassified from AOCI to interest expense | (6) | ||
Other Comprehensive Income (Loss), Net of Tax, Total | (6) | ||
Ending Balance | 0 | 0 | 0 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (20) | (22) | (24) |
Other comprehensive loss before reclassification | 2 | 2 | 2 |
Other Comprehensive Income (Loss), Net of Tax, Total | 2 | ||
Ending Balance | (18) | $ (20) | $ (22) |
AOCI Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | (10) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | 0 | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | (10) | ||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | (8) | ||
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | 0 | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Ending Balance | $ (8) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 1,061 | $ 28 | ||
Revenue | 42 | 16 | $ 8 | |
Transportation and Fuel Management Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 36 | 15 | 7 | |
NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | 138 | 112 | 93 | |
NEER [Member] | Cash Sweep and Credit Support Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 6 | 6 | 6 | |
Due from related parties | 57 | 10 | ||
Dewey and Woodward counties, Oklahoma [Member] | Seiling I and Seiling II Wind Energy Centers [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash payment received from acquisition | $ 2 | $ 2 | $ 2 | |
Dewey and Woodward counties, Oklahoma [Member] | Subsidiary of NEP [Member] | Seiling I and Seiling II Wind Energy Centers [Member] | ||||
Related Party Transaction [Line Items] | ||||
Receivables acquired in acquisition | $ 25 | |||
Acquired receivable interest rate percentage | 7.10% | |||
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 | |||
NEECH [Member] | Guarantees and letters of credit [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total letters of credit | $ 3,778 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||||
Operating leases, ROU assets | $ 44 | $ 44 | $ 42 | |
Operating lease liabilities | 45 | 45 | $ 43 | |
Finance Lease, ROU assets | 48 | 48 | ||
Finance lease, liability | $ 49 | $ 49 | ||
Weighted average discount rate, operating | 4.01% | 4.01% | 4.53% | |
Weighted-average remaining lease term, operating | 26 years | 26 years | 24 years | |
Weighted average discount rate, finance | 3.55% | 3.55% | ||
Weighted-average remaining lease term, financing | 35 years | 35 years | ||
Operating lease costs | $ 3 | $ 3 | $ 3 | |
Variable lease costs | 7 | $ 6 | $ 7 | |
Fixed payments due next twelve months | $ 5 | 5 | ||
Fixed payments due 2022 | 5 | 5 | ||
Fixed payments due 2023 | 5 | 5 | ||
Fixed payments due 2024 | 5 | 5 | ||
Fixed payments due 2025 | 5 | 5 | ||
Fixed payments due thereafter | 136 | 136 | ||
ROU obtained in exchange for finance lease and operating lease liability | 51 | |||
Sales-type lease, net investment | 16 | |||
Sales-type lease, payments to be received | $ 28 | $ 28 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other | Other | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | Other Liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Purchase Commitment [Line Items] | ||
Investment in pipeline expansion project | $ 72 | |
Forecast | ||
Long-term Purchase Commitment [Line Items] | ||
Investment in pipeline expansion project | $ 8 |