Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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 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 Common Stock, Shares Outstanding | 93,432,537 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001603145 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
OPERATING REVENUES | |||||
Renewable energy sales | $ 308 | $ 236 | $ 847 | $ 762 | |
Texas pipelines service revenues | 59 | 66 | 171 | 183 | |
Total operating revenues(a) | [1] | 367 | 302 | 1,018 | 945 |
OPERATING EXPENSES | |||||
Operations and maintenance(b) | [2] | 128 | 153 | 412 | 417 |
Depreciation and amortization | 145 | 107 | 412 | 315 | |
Taxes other than income taxes and other | 21 | 1 | 54 | 32 | |
Total operating expenses – net | 294 | 261 | 878 | 764 | |
GAINS ON DISPOSAL OF BUSINESSES/ASSETS – NET | 0 | 8 | 0 | 35 | |
OPERATING INCOME | 73 | 49 | 140 | 216 | |
OTHER INCOME (DEDUCTIONS) | |||||
Interest expense | 17 | 155 | (207) | 853 | |
Equity in earnings of equity method investees | 58 | 52 | 131 | 154 | |
Equity in earnings of non-economic ownership interests | 13 | 20 | 16 | 56 | |
Other – net | 2 | 1 | 6 | 2 | |
Total other income (deductions) – net | 90 | 228 | (54) | 1,065 | |
INCOME BEFORE INCOME TAXES | 163 | 277 | 86 | 1,281 | |
INCOME TAXES | 31 | 45 | 16 | 178 | |
NET INCOME | [3] | 132 | 232 | 70 | 1,103 |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (79) | (153) | 18 | (660) | |
NET INCOME ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP | $ 53 | $ 79 | $ 88 | $ 443 | |
Earnings per common unit attributable to NextEra Energy Partners, LP - basic (in dollars per share) | $ 0.57 | $ 0.93 | $ 0.96 | $ 5.25 | |
Earnings per common unit attributable to NextEra Energy Partners, LP - assuming dilution (in dollars per share) | $ 0.57 | $ 0.93 | $ 0.96 | $ 5.25 | |
[1]Includes related party revenues of $9 million and $9 million for the three months ended September 30, 2023 and 2022, respectively, and $10 million and $21 million for the nine months ended September 30, 2023 and 2022, respectively.[2]Includes O&M expenses related to renewable energy projects of $114 million and $91 million for the three months ended September 30, 2023 and 2022, respectively, and $326 million and $247 million for the nine months ended September 30, 2023 and 2022, respectively. Includes O&M expenses related to the Texas pipelines of $7 million and $14 million for the three months ended September 30, 2023 and 2022, respectively, and $22 million and $34 million for the nine months ended September 30, 2023 and 2022, respectively. Total O&M expenses presented include related party amounts of $18 million and $70 million for the three months ended September 30, 2023 and 2022, respectively, and $114 million and $195 million for the nine months ended September 30, 2023 and 2022, respectively.[3]For the three and nine months ended September 30, 2023, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees, which was primarily attributable to noncontrolling interests. For the three and nine months ended September 30, 2022, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees, which was primarily attributable to noncontrolling interests. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenues | [1] | $ 367 | $ 302 | $ 1,018 | $ 945 |
Operations and maintenance related to renewable energy projects | 114 | 91 | 326 | 247 | |
Operations and maintenance related to Texas pipelines | 7 | 14 | 22 | 34 | |
Operations and maintenance related party | 18 | 70 | 114 | 195 | |
Other comprehensive income, equity method investments | 1 | 1 | 1 | 1 | |
Related Party | |||||
Revenues | $ 9 | $ 9 | $ 10 | $ 21 | |
[1]Includes related party revenues of $9 million and $9 million for the three months ended September 30, 2023 and 2022, respectively, and $10 million and $21 million for the nine months ended September 30, 2023 and 2022, respectively. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | $ 332 | $ 235 |
Accounts Receivable, after Allowance for Credit Loss, Current | 139 | 137 |
Other receivables | 62 | 41 |
Inventory | 78 | 51 |
Derivatives | 82 | 65 |
Other | 96 | 202 |
Total current assets | 1,122 | 1,862 |
Other assets: | ||
Property, plant and equipment – net | 15,693 | 14,949 |
Derivatives | 220 | 369 |
Goodwill | 913 | 891 |
Investments in equity method investees | 2,038 | 1,917 |
Deferred income taxes | 232 | 195 |
Other | 452 | 333 |
Total other assets | 22,091 | 21,190 |
TOTAL ASSETS | 23,213 | 23,052 |
Current liabilities: | ||
Accounts payable and accrued expenses | 280 | 868 |
Current portion of long-term debt | 1,342 | 38 |
Accrued interest | 34 | 28 |
Accrued property taxes | 45 | 31 |
Other | 73 | 269 |
Total current liabilities | 1,840 | 1,326 |
Other liabilities and deferred credits: | ||
Long-term debt | 5,139 | 5,250 |
Asset retirement obligations | 327 | 299 |
Intangible liabilities – PPAs – net | 1,232 | 1,153 |
Other | 211 | 198 |
Total other liabilities and deferred credits | 6,963 | 6,954 |
TOTAL LIABILITIES | 8,803 | 8,280 |
COMMITMENTS AND CONTINGENCIES | ||
REDEEMABLE NONCONTROLLING INTERESTS | 0 | 101 |
EQUITY | ||
Common units (93.4 and 86.5 units issued and outstanding, respectively) | 3,540 | 3,332 |
Accumulated other comprehensive loss | (7) | (7) |
Noncontrolling interests | 10,877 | 11,346 |
TOTAL EQUITY | 14,410 | 14,671 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | 23,213 | 23,052 |
Related Party | ||
ASSETS | ||
Due from related parties | 333 | 1,131 |
Current liabilities: | ||
Due to related parties | 66 | 92 |
Other liabilities and deferred credits: | ||
Due to related parties | 54 | 54 |
Intangible assets – PPAs - net | ||
Other assets: | ||
Intangible assets | 2,029 | 2,010 |
Customer Relationships | ||
Other assets: | ||
Intangible assets | $ 514 | $ 526 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common units outstanding (in shares) | 93,400,000 | 86,500,000 |
Common units issued (in shares) | 93,400,000 | 86,500,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | [1] | $ 70 | $ 1,103 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 412 | 315 | |
Intangible amortization – PPAs | 61 | 109 | |
Change in value of derivative contracts | 140 | (986) | |
Deferred income taxes | 16 | 177 | |
Equity in earnings of equity method investees, net of distributions received | (7) | (20) | |
Equity in earnings of non-economic ownership interests, net of distributions received | (16) | (52) | |
Gains on disposal of businesses/assets – net | 0 | (35) | |
Other – net | 15 | 2 | |
Changes in operating assets and liabilities: | |||
Current assets | (63) | (37) | |
Noncurrent assets | (87) | 0 | |
Current liabilities | 11 | 35 | |
Net cash provided by operating activities | 552 | 611 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of membership interests in subsidiaries – net | (666) | (190) | |
Capital expenditures and other investments | (1,064) | (958) | |
Proceeds from sale of a business | 55 | 204 | |
Payments from (to) related parties under CSCS agreement – net | 206 | (8) | |
Distributions from equity method investee | 0 | 15 | |
Reimbursements from related parties for capital expenditures | 904 | 895 | |
Other | 1 | 4 | |
Net cash used in investing activities | (564) | (38) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of common units – net | 315 | 147 | |
Issuances of long-term debt, including premiums and discounts | 1,384 | 92 | |
Retirements of long-term debt | (349) | (616) | |
Debt issuance costs | (2) | (5) | |
Partner contributions | 0 | 1 | |
Partner distributions | (554) | (468) | |
Proceeds on sale of Class B noncontrolling interests – net | 0 | 408 | |
Payments to Class B noncontrolling interest investors | (122) | (144) | |
Buyout of Class B noncontrolling interest investors | (590) | 0 | |
Proceeds on sale of differential membership interests | 92 | 0 | |
Proceeds from differential membership investors | 153 | 136 | |
Payments to differential membership investors | (219) | (30) | |
Change in amounts due to related parties | (1) | (17) | |
Other | 2 | (3) | |
Net cash provided by (used in) financing activities | 109 | (499) | |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 97 | 74 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – BEGINNING OF PERIOD | 284 | 151 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF PERIOD | 381 | 225 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Accrued property additions | $ 248 | $ 175 | |
[1]For the three and nine months ended September 30, 2023, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees, which was primarily attributable to noncontrolling interests. For the three and nine months ended September 30, 2022, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees, which was primarily attributable to noncontrolling interests. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Noncontrolling Interests | Common Units, Units | Common Units, Amount | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Redeemable Non-controlling Interests | |
Beginning balance, units at Dec. 31, 2021 | 83,900,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 10,838 | $ 2,985 | $ (8) | $ 7,861 | $ 321 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common units (in shares) | [1],[2] | 2,600,000 | ||||||
Issuance of common units | [1],[2] | 179 | 179 | |||||
Acquisition of subsidiary with differential membership interests | $ 95 | |||||||
Acquisition of subsidiary with differential membership interests and noncontrolling ownership interests | 242 | 106 | 242 | |||||
Net income (loss) | 1,094 | 443 | 651 | 9 | ||||
Other comprehensive income | 1 | 1 | ||||||
Related party note receivable | 1 | 1 | 1 | |||||
Distributions, primarily to related parties | (282) | (282) | (282) | |||||
Changes in non-economic ownership interests | 1 | 1 | 1 | |||||
Other differential membership investment activity | 410 | 410 | (304) | |||||
Payments to Class B noncontrolling interest investors | (144) | (144) | (144) | |||||
Distributions to unitholders | [3] | (186) | (186) | |||||
Sale of Class B noncontrolling interest - net | (1) | |||||||
Sale of Class B noncontrolling interest – net | 407 | 408 | 408 | |||||
Other | 2 | 2 | 0 | 2 | ||||
Ending balance, units at Sep. 30, 2022 | 86,500,000 | |||||||
Ending balance at Sep. 30, 2022 | 12,563 | 3,420 | (8) | 9,151 | 26 | |||
Beginning balance, units at Jun. 30, 2022 | 83,900,000 | |||||||
Beginning balance at Jun. 30, 2022 | 11,959 | 3,228 | (8) | 8,739 | 117 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common units (in shares) | [4],[5] | 2,600,000 | ||||||
Issuance of common units | [4],[5] | 179 | 179 | |||||
Acquisition of subsidiary with differential membership interests | 95 | |||||||
Acquisition of subsidiary with differential membership interests and noncontrolling ownership interests | 242 | 82 | 242 | |||||
Net income (loss) | 230 | 79 | 151 | 2 | ||||
Distributions, primarily to related parties | (115) | (115) | (115) | |||||
Other differential membership investment activity | 175 | 175 | (93) | |||||
Payments to Class B noncontrolling interest investors | (41) | (41) | (41) | |||||
Distributions to unitholders | [6] | (65) | (65) | |||||
Sale of Class B noncontrolling interest - net | (1) | (1) | 0 | |||||
Other | 0 | |||||||
Ending balance, units at Sep. 30, 2022 | 86,500,000 | |||||||
Ending balance at Sep. 30, 2022 | $ 12,563 | 3,420 | (8) | 9,151 | 26 | |||
Beginning balance, units at Dec. 31, 2022 | 86,500,000 | 86,500,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 14,671 | 3,332 | (7) | 11,346 | 101 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common units (in shares) | [7],[8] | 6,900,000 | ||||||
Issuance of common units | [7],[8] | 364 | 364 | |||||
Acquisition of subsidiaries with differential membership interests | 165 | 165 | ||||||
Acquisition of subsidiary with differential membership interests | 72 | 72 | 72 | |||||
Acquisition of subsidiary with differential membership interests and noncontrolling ownership interests | 126 | |||||||
Net income (loss) | 66 | 88 | (22) | 4 | ||||
Distributions, primarily to related parties | (326) | (326) | (326) | |||||
Changes in non-economic ownership interests | 11 | 11 | 11 | |||||
Other differential membership investment activity | 323 | 323 | (105) | |||||
Payments to Class B noncontrolling interest investors | (122) | (122) | (122) | |||||
Distributions to unitholders | [9] | (228) | (228) | |||||
Sale of Class B noncontrolling interest – net | 1 | 1 | 0 | |||||
Exercise of Class B noncontrolling interest buyout right | (590) | (590) | (590) | |||||
Other | $ 5 | 20 | (15) | 20 | ||||
Ending balance, units at Sep. 30, 2023 | 93,400,000 | 93,400,000 | ||||||
Ending balance at Sep. 30, 2023 | $ 14,410 | 3,540 | (7) | 10,877 | 0 | |||
Beginning balance, units at Jun. 30, 2023 | 93,400,000 | |||||||
Beginning balance at Jun. 30, 2023 | 14,528 | 3,565 | (7) | 10,970 | 105 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Acquisition of subsidiary with differential membership interests and noncontrolling ownership interests | 85 | |||||||
Net income (loss) | 132 | 53 | 79 | |||||
Distributions, primarily to related parties | (127) | (127) | (127) | |||||
Other differential membership investment activity | 190 | 190 | (105) | |||||
Payments to Class B noncontrolling interest investors | (33) | (33) | (33) | |||||
Distributions to unitholders | [10] | (80) | (80) | |||||
Exercise of Class B noncontrolling interest buyout right | (201) | (201) | (201) | |||||
Other | $ 1 | $ (1) | 2 | (1) | ||||
Ending balance, units at Sep. 30, 2023 | 93,400,000 | 93,400,000 | ||||||
Ending balance at Sep. 30, 2023 | $ 14,410 | $ 3,540 | $ (7) | $ 10,877 | $ 0 | |||
[1]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $14 million. See Note 8 – Common Unit Issuances[2]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $18 million.[3]Distributions per common unit of $2.2025 were paid during the nine months ended September 30, 2022.[4]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $14 million. See Note 8 – Common Unit Issuances.[5]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $18 million.[6]Distributions per common unit of $0.7625 were paid during the three months ended September 30, 2022.[7]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $20 million. See Note 8 – Common Unit Issuances[8]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $30 million.[9]Distributions per common unit of $2.5090 were paid during the nine months ended September 30, 2023.[10]Distributions per common unit of $0.8540 were paid during the three months ended September 30, 2023 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred tax asset | $ 14 | $ 20 | $ 14 | |
Common Stock | ||||
Distributions per common unit (usd per share) | $ 0.8540 | $ 0.7625 | $ 2.5090 | $ 2.2025 |
ATM Program | ||||
Deferred tax asset | $ 18 | $ 30 | $ 18 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Asset Acquisition | Acquisitions In September 2022, an indirect subsidiary of NEP acquired from NEER interests (September 2022 acquisition) in Sunlight Renewables Holdings, LLC (Sunlight Renewables Holdings) which represent an indirect 67% controlling ownership interest in a battery storage facility in California with storage capacity of 230 MW. In December 2022, an indirect subsidiary of NEP acquired from subsidiaries of NEER ownership interests (December 2022 acquisition) in a portfolio of wind and solar-plus-storage generation facilities with a combined generating capacity totaling approximately 1,673 MW and 65 MW of storage capacity located in various states across the U.S. In March 2023, upon regulatory approvals and the achievement of commercial operations of the facility, Eight Point Wind (Eight Point), an approximately 111 MW wind generation facility in New York, was transferred to Emerald Breeze Holdings, LLC (Emerald Breeze), which was part of the December 2022 acquisition. In March 2023, NEP sold differential membership interests in Eight Point to third-party investors for proceeds of approximately $92 million. See Note 6 and Note 8 – Class B Noncontrolling Interests. In July 2023, Yellow Pine Solar, a 125 MW solar generation and 65 MW storage facility in Nevada, which was part of the December 2022 acquisition, achieved commercial operations. In June 2023, an indirect subsidiary of NEP acquired from indirect subsidiaries of NEER ownership interests in a portfolio of wind and solar generation facilities with a combined generating capacity totaling approximately 688 MW (2023 acquisition) for cash consideration of approximately $566 million, plus working capital of $32 million and the assumption of the portfolio’s existing debt and related interest rate swaps of approximately $141 million at time of closing. The acquired portfolio also includes noncontrolling interests related to differential membership investors of approximately $165 million at time of closing. The acquisition included the following assets: • Montezuma II Wind, an approximately 78 MW wind generation facility located in California; • Chaves County Solar, an approximately 70 MW solar generation facility located in New Mexico; • Live Oak Solar, an approximately 51 MW solar generation facility located in Georgia; • River Bend Solar, an approximately 75 MW solar generation facility located in Alabama; • Casa Mesa Wind, an approximately 51 MW wind generation facility located in New Mexico; • New Mexico Wind, an approximately 204 MW wind generation facility located in New Mexico; • Langdon I, an approximately 118 MW wind generation facility located in North Dakota; and • Langdon II, an approximately 41 MW wind generation facility located in North Dakota. 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 following table summarizes the final amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the 2023 acquisition: (millions) Total consideration transferred $ 598 Identifiable assets acquired and liabilities assumed Cash $ 15 Accounts receivable, inventory and prepaid expenses 17 Current derivative assets 4 Property, plant and equipment – net 764 Intangible assets – PPAs – net 141 Goodwill 21 Noncurrent derivative assets 8 Noncurrent other assets 5 Accounts payable, accrued expenses and current other liabilities (5) Long-term debt (153) Asset retirement obligation (12) Intangible liabilities – PPAs – net (37) Noncurrent other liabilities (5) Noncontrolling interest (165) Total net identifiable assets, at fair value $ 598 NEP incurred approximately $3 million in acquisition-related costs during the nine months ended September 30, 2023 which are reflected as operations and maintenance in the condensed consolidated statements of income. Supplemental Unaudited Pro forma Results of Operations NEP’s pro forma results of operations in the combined entity had the 2023 acquisition been completed on January 1, 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions) Unaudited pro forma results of operations: Pro forma revenues $ 367 $ 324 $ 1,059 $ 1,010 Pro forma operating income $ 73 $ 59 $ 159 $ 249 Pro forma net income $ 132 $ 243 $ 77 $ 1,144 Pro forma net income attributable to NEP $ 53 $ 82 $ 98 $ 455 The unaudited pro forma consolidated results of operations include adjustments to: • reflect the historical results of the business acquired beginning on January 1, 2022 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, intangible assets – PPAs – net and intangible liabilities – PPAs – net; • reflect assumed interest expense related to funding the acquisition; 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 transaction been made at the beginning of the periods presented or the future results of the consolidated operations. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
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 net amortization of intangible asset – PPAs and intangible liabilities – 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 three months ended September 30, 2023 is $291 million and $58 million, for the nine months ended September 30, 2023 is $825 million and $171 million, for the three months ended September 30, 2022 is $232 million and $64 million, and for the nine months ended September 30, 2022 is $747 million and $181 million, of revenue from contracts with customers for renewable energy sales and natural gas transportation services, 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 2023 to 2035. At September 30, 2023, approximately $1.5 billion of revenues are expected to be recorded 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 September 30, 2023, approximately $172 million of revenues related to the fixed price components of one PPA are expected to be recorded through 2039 as the energy is delivered. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 9 Months Ended |
Sep. 30, 2023 | |
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 and to manage the physical and financial risks inherent in the sale of electricity. NEP records all derivative instruments that are required to be marked to market as either assets or liabilities on its condensed 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 interest rate contract derivatives' fair value are recognized in interest expense and the equity method investees' related activity is recognized in equity in earnings of equity method investees in NEP's condensed consolidated statements of income. At September 30, 2023 and December 31, 2022, the net notional amounts of the interest rate contracts were approximately $2.2 billion and $7.8 billion, respectively. All changes in commodity contract derivatives' fair value are recognized in operating revenues in NEP's condensed consolidated statements of income. At September 30, 2023 and December 31, 2022, NEP had derivative commodity contracts for power with net notional volumes of approximately 6.0 million and 5.7 million MW hours, respectively. Cash flows from the interest rate and commodity contracts are reported in cash flows from operating activities in NEP's condensed consolidated statements of cash flows. In October 2023, NEP entered into forward starting interest rate swap agreements with a notional amount of $1.85 billion to manage interest rate risk associated with forecasted debt issuances. 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 of interest rate contracts 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 September 30, 2023 and December 31, 2022, 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 condensed consolidated balance sheets. September 30, 2023 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 309 $ — $ (12) $ 297 Commodity contracts $ — $ — $ 7 $ (2) 5 Total derivative assets $ 302 Liabilities: Interest rate contracts $ — $ 15 $ — $ (12) $ 3 Commodity contracts $ — $ — $ 11 $ (2) 9 Total derivative liabilities $ 12 Net fair value by balance sheet line item: Current derivative assets $ 82 Noncurrent derivative assets 220 Total derivative assets $ 302 Current other liabilities $ 9 Noncurrent other liabilities 3 Total derivative liabilities $ 12 December 31, 2022 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 459 $ — $ (26) $ 433 Commodity contracts $ — $ — $ 3 $ (2) 1 Total derivative assets $ 434 Liabilities: Interest rate contracts $ — $ 37 $ — $ (26) $ 11 Commodity contracts $ — $ — $ 5 $ (2) 3 Total derivative liabilities $ 14 Net fair value by balance sheet line item: Current derivative assets $ 65 Noncurrent derivative assets 369 Total derivative assets $ 434 Current other liabilities $ 12 Noncurrent other liabilities 2 Total derivative liabilities $ 14 ____________________ (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 derivatives are recorded in NEP's condensed consolidated financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions) Interest rate contracts – interest expense $ 97 $ 201 $ (1) $ 978 Commodity contracts – operating revenues $ 5 $ 1 $ (4) $ 1 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 September 30, 2023 and December 31, 2022, the aggregate fair value of NEP's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $15 million and $37 million, respectively. |
Non-Derivative Fair Value Measu
Non-Derivative Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 3 – Fair Value Measurement 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 condensed 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: September 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ — $ — $ — $ 5 $ — $ 5 Total assets $ — $ — $ — $ 5 $ — $ 5 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: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair (millions) Long-term debt, including current maturities (a) $ 6,481 $ 6,171 $ 5,288 $ 5,105 ____________________ (a) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes are calculated for NEP as a single taxpaying corporation for U.S. federal and state income taxes (based on NEP's election to be taxed as a corporation). NEP recognizes in income its applicable ownership share of U.S. income taxes due to the disregarded/partnership tax status of substantially all of the U.S. projects under NEP OpCo. Net income or loss attributable to noncontrolling interests includes minimal U.S. taxes. The effective tax rates for the three and nine months ended September 30, 2023 were approximately 19% and 19%, respectively, and for the three and nine months ended September 30, 2022 were approximately 16% and 14%, respectively. The effective tax rates are below the U.S. statutory rate of 21% primarily due to tax benefit attributable to noncontrolling interests of approximately $3 million for the three months ended September 30, 2023 and tax benefit attributable to PTCs of $22 million for the nine months ended September 30, 2023. The effective tax rates are below the U.S. statutory rate of 21% primarily due to tax benefit attributable to noncontrolling interests of approximately of $23 million and $126 million for the three and nine months ended September 30, 2022, respectively. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023, NEP owned an approximately 48.6% limited partner interest in NEP OpCo and NEE Equity owned a noncontrolling 51.4% 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 September 30, 2023, NEP OpCo consolidated 20 VIEs related to certain subsidiaries which have sold differential membership interests in entities which own and operate 40 wind generation facilities as well as eight solar projects, including related battery storage facilities, and one battery storage facility. 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 $11,577 million and $739 million, respectively, at September 30, 2023. There were 21 VIEs at December 31, 2022, and the assets and liabilities of those VIEs at such date totaled approximately $12,127 million and $1,336 million, respectively. At September 30, 2023, NEP OpCo also consolidated six VIEs related to the sales of noncontrolling Class B interests in certain NEP subsidiaries (see Note 10 – Noncontrolling Interests) which have ownership interests in and operate wind and solar facilities with a combined net generating capacity of approximately 5,622 MW and battery storage capacity of 120 MW, as well as ownership interests in seven natural gas pipeline assets (see Note 8 – Class B Noncontrolling Interests regarding Class B membership interests in STX Midstream). 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, intangible liabilities – PPAs, noncurrent other liabilities and asset retirement obligation, of the VIEs totaled approximately $15,882 million and $2,902 million, respectively, at September 30, 2023 and $16,448 million and $3,456 million, respectively, at December 31, 2022. Certain of these VIEs include six other VIEs related to NEP's ownership interests in Rosmar Holdings, LLC, Silver State, Meade, Pine Brooke Holdings, Star Moon Holdings, LLC (Star Moon Holdings) and Emerald Breeze (see Note 1). In addition, certain of these VIEs contain entities which have sold differential membership interests and approximately $7,740 million and $8,088 million of assets and $611 million and $1,198 million of liabilities are also included in the disclosure of the VIEs related to differential membership interests at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023, NEP OpCo consolidated Sunlight Renewables Holdings which is a VIE (see Note 1). The assets, primarily property, plant and equipment – net, and the liabilities, primarily accounts payable and accrued expenses, asset retirement obligation and noncurrent other liabilities, of the VIE totaled approximately $435 million and $11 million, respectively, at September 30, 2023 and $443 million and $10 million, respectively, at December 31, 2022. This VIE contains entities which have sold differential membership interests and approximately $348 million and $344 million of assets and $11 million and $10 million of liabilities are also included in the disclosure of VIEs related to differential membership interests at September 30, 2023 and December 31, 2022, respectively. Certain subsidiaries of NEP OpCo have noncontrolling interests in entities accounted for under the equity method that are considered VIEs. 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 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Significant long-term debt issuances and borrowings by subsidiaries of NEP during the nine months ended September 30, 2023 were as follows: Date Issued/Borrowed Debt Issuances/Borrowings Interest Principal Maturity (millions) February 2023 – September 2023 NEP OpCo credit facility Variable (a) $ 865 (b) 2028 March 2023 Other long-term debt Fixed (c) $ 14 (c) April 2023 – September 2023 STX Holdings revolving credit facility Variable (a) $ 177 (d) 2024 June 2023 Senior secured limited-recourse debt Variable (a) $ 330 (e) 2028 ———————————— (a) Variable rate is based on an underlying index plus a margin. (b) At September 30, 2023, approximately $545 million of borrowings were outstanding and $53 million of letters of credit were issued under the NEP OpCo credit facility. Approximately $11 million of the outstanding borrowings have a maturity date in 2025. In October 2023, $85 million was drawn under the NEP OpCo credit facility and $35 million was repaid. See Note 8 – Class B Noncontrolling Interests regarding Class B membership interests in STX Midstream. (c) See Note 9 – Related Party Long-term Debt. (d) Borrowings used to fund a portion of the cash used for NEP's repurchase of the Class B noncontrolling membership interests in STX Midstream (see Note 8 – Class B Noncontrolling Interests regarding Class B membership interests in STX Midstream). At September 30, 2023, approximately $177 million of borrowings were outstanding under the STX Holdings revolving credit facility. In October 2023, approximately $60 million was drawn under the STX Holdings revolving credit facility. (e) Borrowings used to provide funds to repay a portion of the amount outstanding under the revolving credit facility in July 2023. In February 2023, the loan parties extended the maturity date from February 2027 to February 2028 for essentially all of the NEP OpCo credit facility. NEP OpCo and its subsidiaries' secured long-term debt agreements are secured by liens on certain assets and contain provisions which, under certain conditions, could restrict the payment of distributions or related party fee payments. At September 30, 2023, NEP and its subsidiaries were in compliance with all financial debt covenants under their financings. Convertible Notes – In August 2023, as a result of NEP's distribution to common unitholders on August 14, 2023, the conversion ratio of NEP's 2020 convertible notes was adjusted. At September 30, 2023, the conversion rate, which is subject to certain adjustments, was 13.4422 NEP common units per $1,000 of the 2020 convertible notes, which is equivalent to a conversion price of approximately $74.3926 per NEP common unit. At September 30, 2023, the 2020 capped call options have a strike price of $74.3926 and a cap price of $117.7886, subject to certain adjustments. In November 2023, as a result of NEP's distribution authorized by the board of directors (see Note 8 – Distributions), the conversion ratio of NEP's 2021 convertible notes was adjusted. At November 6, 2023, the conversion rate, which is subject to certain adjustments, was 11.3323 NEP common units per $1,000 of the 2021 convertible notes, which is equivalent to a conversion price of approximately $88.2433 per NEP common unit. At November 6, 2023, the 2021 capped call options have a strike price of $88.2433 and a cap price of $110.3038, subject to certain adjustments. In connection with the issuance of the 2022 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 SEC and use its commercially reasonable efforts to cause such registration statement to become effective on or prior to December 12, 2023, covering resales of NEP common units, if any, issuable upon a conversion of the 2022 convertible notes. Upon conversion of NEP's 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 September 30, 2023, NEP does not anticipate issuing common units in connection with a conversion of any of the convertible notes due to the current conversion price of each of the respective convertible notes and NEP having control of how to settle its conversion obligation. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Distributions – On October 23, 2023, the board of directors of NEP authorized a distribution of $0.8675 per common unit payable on November 14, 2023 to its common unitholders of record on November 6, 2023. Earnings Per Unit – Diluted earnings per unit is calculated based on the weighted-average number of common units and potential common units outstanding during the period, including the dilutive effect of convertible notes. The dilutive effect of the 2022 convertible notes, 2021 convertible notes and the 2020 convertible notes is computed using the if-converted method. The reconciliation of NEP's basic and diluted earnings per unit for the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions, except per unit amounts) Numerator – Net income attributable to NEP $ 53 $ 79 $ 88 $ 443 Denominator: Weighted-average number of common units outstanding – basic 93.4 85.1 91.0 84.3 Dilutive effect of convertible notes — 0.5 — 0.1 Weighted-average number of common units outstanding and assumed conversions 93.4 85.6 91.0 84.4 Earnings per unit attributable to NEP: Basic $ 0.57 $ 0.93 $ 0.96 $ 5.25 Assuming dilution $ 0.57 $ 0.93 $ 0.96 $ 5.25 ATM Program – During the three months ended September 30, 2023, NEP did not issue any common units under its at-the-market equity issuance program (ATM program). During the nine months ended September 30, 2023, NEP issued approximately 5.1 million common units under the ATM program for net proceeds of approximately $314 million. NEP most recently renewed its ATM program in March 2023. During the three and nine months ended September 30, 2022, NEP issued approximately 1.8 million common units under the ATM program, for net proceeds of approximately $145 million. Fees related to the ATM program were approximately $3 million for the nine months ended September 30, 2023 and $1 million for the three and nine months ended September 30, 2022. Common Unit Issuances – During the three months ended September 30, 2023, NEE Equity did not exchange any NEP OpCo common units for NEP common units. During the nine months ended September 30, 2023, NEP issued approximately 1.7 million NEP common units upon NEE Equity's exchange of NEP OpCo common units on a one-for-one basis. During the three and nine months ended September 30, 2022, NEP issued approximately 0.8 million NEP common units upon NEE Equity's exchange of NEP OpCo common units on a one-for-one basis. Class B Noncontrolling Interests – In January 2023, NEP sold its ownership interests in one wind project with a net generating capacity of approximately 62 MW to a third party and approximately $45 million of the cash proceeds from the sale were distributed to the third-party owner of Class B membership interests in NEP Renewables II (see Note 10 – Disposal of Wind Project). In March 2023, relating to the December 2022 acquisition, a wind generation facility in New York with net generating capacity of approximately 54 MW was transferred to NEP Renewables IV. See Note 1. In 2019, a subsidiary of NEP sold Class B membership interests in STX Midstream, NEP's subsidiary which owns the Texas pipelines, to a third-party investor. During the first half of 2023, NEP completed the buyout of 50% of the originally issued Class B membership interests in STX Midstream for a cumulative purchase price of approximately $390 million which was funded using proceeds generated from unit sales executed under the ATM program and draws on the STX Holdings revolving credit facility (see ATM Program above and Note 7). In September 2023, NEP exercised its option to purchase an additional 25% of the originally issued Class B membership interests in STX Midstream for aggregate cash consideration of approximately $201 million and, in October 2023, NEP exercised its option to purchase the final 25% for a purchase price of approximately $201 million which completes the entire buyout of the Class B membership interests in STX Midstream. The purchase price for the final two buyouts was funded primarily using draws on the NEP OpCo credit facility and the STX Holdings revolving credit facility (see Note 7). NEP entered into an agreement to sell its Texas pipelines and expects to use a portion of the proceeds from the sale to pay off the STX Holdings revolving credit facility and pay down the NEP OpCo credit facility for the amounts borrowed to buy out the Class B membership interests in STX Midstream (see Note 10 - Disposal of Texas Pipelines). Accumulated Other Comprehensive Income (Loss) – During the three and nine months ended September 30, 2023, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees. During the three and nine months ended September 30, 2022, NEP recognized less than $1 million and $1 million, respectively, of other comprehensive income related to equity method investees. At September 30, 2023 and 2022, NEP's accumulated other comprehensive loss totaled approximately $16 million and $17 million, respectively, of which $9 million and $9 million, respectively, was attributable to noncontrolling interest and $7 million and $8 million, respectively, was attributable to NEP. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Each project entered into O&M agreements and ASAs with subsidiaries of NEER whereby the projects pay a certain annual fee plus actual costs incurred in connection with certain O&M and administrative services performed under these agreements. These services are reflected as operations and maintenance in NEP's condensed consolidated statements of income. Additionally, certain NEP subsidiaries pay affiliates for transmission and retail power services which are reflected as operations and maintenance in NEP's condensed consolidated statements of income. Certain projects have also entered into various types of agreements including those related to shared facilities and transmission lines, transmission line easements, technical support and construction coordination with subsidiaries of NEER whereby certain fees or cost reimbursements are paid to, or received by, certain subsidiaries of NEER. Management Services Agreement – Under the MSA, an indirect wholly owned subsidiary of NEE provides operational, management and administrative services to NEP, including managing NEP’s day-to-day affairs and providing individuals to act as NEP’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 made certain payments to NEE based on the achievement by NEP OpCo of certain target quarterly distribution levels to its unitholders. In May 2023, the MSA was amended to suspend these payments to be paid by NEP OpCo in respect to each calendar quarter beginning with the payment related to the period commencing on (and including) January 1, 2023 and expiring on (and including) December 31, 2026. NEP’s O&M expenses for the three and nine months ended September 30, 2023 include approximately $3 million and $49 million, respectively, and for the three and nine months ended September 30, 2022 include approximately $43 million and $122 million, respectively, related to the MSA. Cash Sweep and Credit Support 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 three and nine months ended September 30, 2023 include approximately $2 million and $6 million, respectively, and for the three and nine months ended September 30, 2022 include approximately $2 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 NEP OpCo's 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 OpCo'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 September 30, 2023 and December 31, 2022, the cash sweep amounts held in accounts belonging to NEER or its affiliates were approximately $92 million and $298 million, respectively, and are included in due from related parties on NEP's condensed consolidated balance sheets. Guarantees and Letters of Credit Entered into by Related Parties – Certain PPAs include requirements of the project entities to meet certain performance obligations. NEECH or NEER has provided letters of credit or guarantees for certain of these performance obligations and payment of any obligations from the transactions contemplated by the PPAs . In addition, certain 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. In addition, NEECH and NEER provided guarantees associated with obligations, primarily incurred and future construction payables, associated with the December 2022 acquisition from NEER discussed in Note 1. At September 30, 2023, NEECH or NEER guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $2.7 billion related to these obligations. Due from Related Parties – Current amounts due from related parties on NEP's condensed consolidated balance sheets primarily represent construction completion costs NEER owes NEP associated with the December 2022 acquisition and transfer of Eight Point (see Note 1). Substantially all of these construction costs are subject to structured payables arrangements which were primarily entered into while the projects were owned by NEER. Under NEE's structured payables program, negotiable drafts were issued, backed by NEECH guarantees, to settle invoices with suppliers with payment terms that extended the original invoice due date (typically 30 days) to less than one year. NEE, NEP and their subsidiaries are not party to any contractual agreements between the suppliers and the applicable financial institutions. As of September 30, 2023 and December 31, 2022, the due from related parties balance associated with NEE's structured payables program were approximately $177 million and $770 million, respectively, with corresponding amounts in accounts payable and accrued expenses on NEP's condensed consolidated balance sheets. Related Party Tax Receivable – In 2018, NEP and NEE entered into a tax sharing agreement and, as a result, NEP recorded a related party tax receivable of approximately $18 million which was reflected in noncontrolling interests on NEP's condensed consolidated balance sheets. In June 2023, NEE contributed 100,169 NEP OpCo units to NEP as payment to settle this related party tax receivable and the units were subsequently cancelled. Approximately $13 million, primarily related to the difference between the value of the related party tax receivable and the value of the NEP OpCo units received, was recorded as an adjustment to common unit equity and noncontrolling interests. Related Party Long-Term Debt – In connection with the December 2022 acquisition from NEER of Emerald Breeze (see Note 1), a subsidiary of NEP acquired a note payable from a subsidiary of NEER relating to restricted cash reserve funds put in place for certain operational costs at the project based on a requirement of the differential membership investor. At September 30, 2023 and December 31, 2022, the note payable was approximately $62 million and $48 million, respectively and is included in long-term debt on NEP's condensed consolidated balance sheets. The note payable does not bear interest and does not have a maturity date. Due to Related Parties – Noncurrent amounts due to related parties on NEP's condensed 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 condensed 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 |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting and Reporting Policies | . Summary of Significant Accounting and Reporting Policies Restricted Cash – A t September 30, 2023 and December 31, 2022 , NEP had approximately $49 million and $49 million, respectively, of restricted cash included in current other assets on NEP's condensed consolidated balance sheets. Restricted cash at September 30, 2023 and December 31, 2022 is primarily related to an operating cash reserve. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds. Property, Plant and Equipment – Property, plant and equipment consists of the following: September 30, 2023 December 31, 2022 (millions) Property, plant and equipment, gross $ 18,172 $ 17,039 Accumulated depreciation (2,479) (2,090) Property, plant and equipment – net $ 15,693 $ 14,949 Noncontrolling Interests – At September 30, 2023, noncontrolling interests on NEP's condensed consolidated balance sheets primarily reflect the Class B noncontrolling ownership interests (the Class B noncontrolling ownership interests in NEP Renewables II, NEP Pipelines, STX Midstream, Genesis Holdings, NEP Renewables III and NEP Renewables IV owned by third parties), the differential membership interests, NEE Equity's approximately 51.4% noncontrolling interest in NEP OpCo, NEER's approximately 50% noncontrolling ownership interest in Silver State, NEER's 33% noncontrolling interest in Sunlight Renewables Holdings and NEER's 51% noncontrolling interest in Emerald Breeze (see Note 1), non-affiliated parties' 10% interest in one of the Texas pipelines and 50% interest in Star Moon Holdings and the non-economic ownership interests. The impact of the net income (loss) attributable to the differential membership interests and the Class B noncontrolling ownership interests are allocated to NEE Equity's noncontrolling ownership interest and the net income attributable to NEP based on the respective ownership percentage of NEP OpCo. Details of the activity in noncontrolling interests are below: Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling Three months ended September 30, 2023 (millions) Balances, June 30, 2023 $ 4,722 $ 4,300 $ 840 $ 1,108 $ 10,970 Net income (loss) attributable to noncontrolling interests 84 (148) 114 29 79 Distributions, primarily to related parties — (1) (109) (17) (127) Differential membership investment contributions, net of distributions — 85 — — 85 Payments to Class B noncontrolling interest investors (33) — — — (33) Reclassification of redeemable noncontrolling interests — 105 — — 105 Exercise of Class B noncontrolling interest buyout right (201) — — — (201) Other 2 (1) 2 (4) (1) Balances, September 30, 2023 $ 4,574 $ 4,340 $ 847 $ 1,116 $ 10,877 Nine months ended September 30, 2023 Balances, December 31, 2022 $ 5,031 $ 4,359 $ 891 $ 1,065 $ 11,346 Acquisition of subsidiaries with differential membership interests — 165 — — 165 Acquisition of subsidiary with noncontrolling ownership interest — — 72 — 72 Net income (loss) attributable to noncontrolling interests 255 (506) 157 72 (22) Distributions, primarily to related parties — — (291) (35) (326) Changes in non-economic ownership interests — — — 11 11 Differential membership investment contributions, net of distributions — 126 — — 126 Payments to Class B noncontrolling interest investors (122) — — — (122) Sale of differential membership interest — 92 — — 92 Reclassification of redeemable noncontrolling interests — 105 — — 105 Exercise of Class B noncontrolling interest buyout right (590) — — — (590) Other — (1) 18 3 20 Balances, September 30, 2023 $ 4,574 $ 4,340 $ 847 $ 1,116 $ 10,877 ———————————— (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interests in Silver State, Sunlight Renewables Holdings and Emerald Breeze. Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling Three months ended September 30, 2022 (millions) Balances, June 30, 2022 $ 4,225 $ 3,069 $ 403 $ 1,042 $ 8,739 Acquisition of subsidiary with differential membership interests — 147 — — 147 Acquisition of subsidiary with noncontrolling ownership interests — — 95 — 95 Net income (loss) attributable to noncontrolling interests 76 (115) 154 36 151 Distributions, primarily to related parties — — (91) (24) (115) Differential membership investment contributions, net of distributions — 82 — — 82 Payments to Class B noncontrolling interest investors (41) — — — (41) Reclassification of redeemable noncontrolling interests — 93 — — 93 Other — — (1) 1 — Balances, September 30, 2022 $ 4,260 $ 3,276 $ 560 $ 1,055 $ 9,151 Nine months ended September 30, 2022 Balances, December 31, 2021 $ 3,783 $ 3,150 $ (38) $ 966 $ 7,861 Sale of Class B noncontrolling interest – net (b) 408 — — — 408 Acquisition of subsidiary with differential membership interests — 147 — — 147 Acquisition of subsidiary with noncontrolling ownership interests — — 95 — 95 Related party note receivable — — 1 — 1 Net income (loss) attributable to noncontrolling interests 214 (431) 756 112 651 Other comprehensive income — — 1 — 1 Distributions, primarily to related parties — — (251) (31) (282) Changes in non-economic ownership interests, net of distributions — — — 1 1 Differential membership investment contributions, net of distributions — 106 — — 106 Payments to Class B noncontrolling interest investors (144) — — — (144) Reclassification of redeemable noncontrolling interests — 304 — — 304 Other (1) — (4) 7 2 Balances, September 30, 2022 $ 4,260 $ 3,276 $ 560 $ 1,055 $ 9,151 ———————————— (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interest in Silver State and Sunlight Renewables Holdings. (b) Represents NEP Renewables III final funding. Redeemable Noncontrolling Interests – In connection with the December 2021 acquisition from NEER, NEP recorded redeemable noncontrolling interests of approximately $321 million relating to certain contingencies whereby NEP may have been obligated to either redeem interests of third-party investors in certain projects which were under construction or return proceeds to third-party investors in certain projects. During the three months ended March 31, 2022, the construction of projects was completed which resolved one of the contingencies and the redeemable noncontrolling interests amount related to the completion of the projects was reclassified to noncontrolling interests. During the three months ended September 30, 2022, legislation was enacted establishing a solar PTC, which substantially resolved the contingencies related to the return of proceeds and resulted in $93 million of redeemable noncontrolling interests being reclassified to noncontrolling interests. In connection with the sale of differential membership interests to a third-party investor in December 2022, NEP recorded redeemable noncontrolling interests of approximately $101 million relating to certain contingencies whereby NEP may have been obligated to reacquire all or a portion of the third-party investor's interests in an under construction project. During the three months ending September 30, 2023, the construction of the project was completed which resolved the contingencies and the redeemable noncontrolling interests amount of approximately $105 million was reclassified to noncontrolling interests. Goodwill and Indefinite-Lived Intangible Assets – Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually or whenever an event indicating impairment may have occurred. As a result of the significant decline in trading price of NEP’s common units during the final three trading days of the third quarter of 2023, NEP tested its goodwill for impairment by applying a fair value-based analysis using an assessment date of September 30, 2023 and determined, based on the results, that its goodwill was not impaired. NEP will continue to monitor its goodwill carrying value for future impairments. Disposal of Pipeline – In April 2022, subsidiaries of NEP sold all of their ownership interests in an approximately 156-mile, 16-inch pipeline that transports natural gas in Texas to a third party for total consideration of approximately $203 million. Approximately $70 million of the cash proceeds from the sale were distributed to the third-party owner of Class B membership interests in STX Midstream. Disposal of Wind Project – In January 2023, a subsidiary of NEP completed the sale of a 62 MW wind project located in Barnes County, North Dakota for approximately $50 million, subject to working capital and other adjustments. Approximately $45 million of the cash proceeds from the sale were distributed to the third-party owner of Class B membership interests in NEP Renewables II (see Note 8 – Class B Noncontrolling Interests). At December 31, 2022, the carrying amounts of the major classes of assets related to the wind project of approximately $51 million, which primarily represent property, plant and equipment – net, were classified as held for sale and included in current other assets on NEP's condensed consolidated balance sheet and liabilities associated with assets held for sale of approximately $1 million were included in current other liabilities on NEP's condensed consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Development, Engineering and Construction Commitments – At September 30, 2023, an indirect subsidiary of NEP had an approximately $37 million funding commitment related to a natural gas pipeline project which is part of the natural gas pipeline assets NEP entered into an agreement to sell in November 2023. The project is expected to achieve commercial operations in the fourth quarter of 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 53 | $ 79 | $ 88 | $ 443 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy | 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 and to manage the physical and financial risks inherent in the sale of electricity. NEP records all derivative instruments that are required to be marked to market as either assets or liabilities on its condensed 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 interest rate contract derivatives' fair value are recognized in interest expense and the equity method investees' related activity is recognized in equity in earnings of equity method investees in NEP's condensed consolidated statements of income. 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. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | 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 condensed consolidated balance sheets is estimated using a market approach based on current observable market prices. |
Summary of Significant Accoun_2
Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interests – In connection with the December 2021 acquisition from NEER, NEP recorded redeemable noncontrolling interests of approximately $321 million relating to certain contingencies whereby NEP may have been obligated to either redeem interests of third-party investors in certain projects which were under construction or return proceeds to third-party investors in certain projects. During the three months ended March 31, 2022, the construction of projects was completed which resolved one of the contingencies and the redeemable noncontrolling interests amount related to the completion of the projects was reclassified to noncontrolling interests. During the three months ended September 30, 2022, legislation was enacted establishing a solar PTC, which substantially resolved the contingencies related to the return of proceeds and resulted in $93 million of redeemable noncontrolling interests being reclassified to noncontrolling interests. In connection with the sale of differential membership interests to a third-party investor in December 2022, NEP recorded redeemable noncontrolling interests of approximately $101 million relating to certain contingencies whereby NEP may have been obligated to reacquire all or a portion of the third-party investor's interests in an under construction project. During the three months ending September 30, 2023, the construction of the project was completed which resolved the contingencies and the redeemable noncontrolling interests amount of approximately $105 million was reclassified to noncontrolling interests. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | Restricted Cash – A t September 30, 2023 and December 31, 2022 , NEP had approximately $49 million and $49 million, respectively, of restricted cash included in current other assets on NEP's condensed consolidated balance sheets. Restricted cash at September 30, 2023 and December 31, 2022 is primarily related to an operating cash reserve. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds. |
Consolidation, Policy | Noncontrolling Interests – At September 30, 2023, noncontrolling interests on NEP's condensed consolidated balance sheets primarily reflect the Class B noncontrolling ownership interests (the Class B noncontrolling ownership interests in NEP Renewables II, NEP Pipelines, STX Midstream, Genesis Holdings, NEP Renewables III and NEP Renewables IV owned by third parties), the differential membership interests, NEE Equity's approximately 51.4% noncontrolling interest in NEP OpCo, NEER's approximately 50% noncontrolling ownership interest in Silver State, NEER's 33% noncontrolling interest in Sunlight Renewables Holdings and NEER's 51% noncontrolling interest in Emerald Breeze (see Note 1), non-affiliated parties' 10% interest in one of the Texas pipelines and 50% interest in Star Moon Holdings and the non-economic ownership interests. The impact of the net income (loss) attributable to the differential membership interests and the Class B noncontrolling ownership interests are allocated to NEE Equity's noncontrolling ownership interest and the net income attributable to NEP based on the respective ownership percentage of NEP OpCo. |
Goodwill and Intangible Assets, Goodwill, Policy | Goodwill and Indefinite-Lived Intangible Assets – Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually or whenever an event indicating impairment may have occurred. As a result of the significant decline in trading price of NEP’s common units during the final three trading days of the third quarter of 2023, NEP tested its goodwill for impairment by applying a fair value-based analysis using an assessment date of September 30, 2023 and determined, based on the results, that its goodwill was not impaired. NEP will continue to monitor its goodwill carrying value for future impairments. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Asset Acquisition | The following table summarizes the final amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the 2023 acquisition: (millions) Total consideration transferred $ 598 Identifiable assets acquired and liabilities assumed Cash $ 15 Accounts receivable, inventory and prepaid expenses 17 Current derivative assets 4 Property, plant and equipment – net 764 Intangible assets – PPAs – net 141 Goodwill 21 Noncurrent derivative assets 8 Noncurrent other assets 5 Accounts payable, accrued expenses and current other liabilities (5) Long-term debt (153) Asset retirement obligation (12) Intangible liabilities – PPAs – net (37) Noncurrent other liabilities (5) Noncontrolling interest (165) Total net identifiable assets, at fair value $ 598 |
Supplemental Unaudited Pro forma Results of Operations | NEP’s pro forma results of operations in the combined entity had the 2023 acquisition been completed on January 1, 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions) Unaudited pro forma results of operations: Pro forma revenues $ 367 $ 324 $ 1,059 $ 1,010 Pro forma operating income $ 73 $ 59 $ 159 $ 249 Pro forma net income $ 132 $ 243 $ 77 $ 1,144 Pro forma net income attributable to NEP $ 53 $ 82 $ 98 $ 455 The unaudited pro forma consolidated results of operations include adjustments to: • reflect the historical results of the business acquired beginning on January 1, 2022 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, intangible assets – PPAs – net and intangible liabilities – PPAs – net; • reflect assumed interest expense related to funding the acquisition; and • reflect related income tax effects. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the fair values included in balance sheets | The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at September 30, 2023 and December 31, 2022, 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 condensed consolidated balance sheets. September 30, 2023 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 309 $ — $ (12) $ 297 Commodity contracts $ — $ — $ 7 $ (2) 5 Total derivative assets $ 302 Liabilities: Interest rate contracts $ — $ 15 $ — $ (12) $ 3 Commodity contracts $ — $ — $ 11 $ (2) 9 Total derivative liabilities $ 12 Net fair value by balance sheet line item: Current derivative assets $ 82 Noncurrent derivative assets 220 Total derivative assets $ 302 Current other liabilities $ 9 Noncurrent other liabilities 3 Total derivative liabilities $ 12 December 31, 2022 Level 1 Level 2 Level 3 Netting (a) Total (millions) Assets: Interest rate contracts $ — $ 459 $ — $ (26) $ 433 Commodity contracts $ — $ — $ 3 $ (2) 1 Total derivative assets $ 434 Liabilities: Interest rate contracts $ — $ 37 $ — $ (26) $ 11 Commodity contracts $ — $ — $ 5 $ (2) 3 Total derivative liabilities $ 14 Net fair value by balance sheet line item: Current derivative assets $ 65 Noncurrent derivative assets 369 Total derivative assets $ 434 Current other liabilities $ 12 Noncurrent other liabilities 2 Total derivative liabilities $ 14 ____________________ (a) Includes the effect of the contractual ability to settle contracts under master netting arrangements. |
Schedule of gains (losses) related to interest rate contracts | Gains (losses) related to NEP's derivatives are recorded in NEP's condensed consolidated financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions) Interest rate contracts – interest expense $ 97 $ 201 $ (1) $ 978 Commodity contracts – operating revenues $ 5 $ 1 $ (4) $ 1 |
Non-Derivative Fair Value Mea_2
Non-Derivative Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total (millions) Assets: Cash equivalents $ — $ — $ — $ 5 $ — $ 5 Total assets $ — $ — $ — $ 5 $ — $ 5 |
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: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair (millions) Long-term debt, including current maturities (a) $ 6,481 $ 6,171 $ 5,288 $ 5,105 ____________________ (a) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Significant long-term debt issuances and borrowings by subsidiaries of NEP during the nine months ended September 30, 2023 were as follows: Date Issued/Borrowed Debt Issuances/Borrowings Interest Principal Maturity (millions) February 2023 – September 2023 NEP OpCo credit facility Variable (a) $ 865 (b) 2028 March 2023 Other long-term debt Fixed (c) $ 14 (c) April 2023 – September 2023 STX Holdings revolving credit facility Variable (a) $ 177 (d) 2024 June 2023 Senior secured limited-recourse debt Variable (a) $ 330 (e) 2028 ———————————— (a) Variable rate is based on an underlying index plus a margin. (b) At September 30, 2023, approximately $545 million of borrowings were outstanding and $53 million of letters of credit were issued under the NEP OpCo credit facility. Approximately $11 million of the outstanding borrowings have a maturity date in 2025. In October 2023, $85 million was drawn under the NEP OpCo credit facility and $35 million was repaid. See Note 8 – Class B Noncontrolling Interests regarding Class B membership interests in STX Midstream. (c) See Note 9 – Related Party Long-term Debt. (d) Borrowings used to fund a portion of the cash used for NEP's repurchase of the Class B noncontrolling membership interests in STX Midstream (see Note 8 – Class B Noncontrolling Interests regarding Class B membership interests in STX Midstream). At September 30, 2023, approximately $177 million of borrowings were outstanding under the STX Holdings revolving credit facility. In October 2023, approximately $60 million was drawn under the STX Holdings revolving credit facility. (e) Borrowings used to provide funds to repay a portion of the amount outstanding under the revolving credit facility in July 2023. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliation of NEP's basic and diluted earnings per unit for the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (millions, except per unit amounts) Numerator – Net income attributable to NEP $ 53 $ 79 $ 88 $ 443 Denominator: Weighted-average number of common units outstanding – basic 93.4 85.1 91.0 84.3 Dilutive effect of convertible notes — 0.5 — 0.1 Weighted-average number of common units outstanding and assumed conversions 93.4 85.6 91.0 84.4 Earnings per unit attributable to NEP: Basic $ 0.57 $ 0.93 $ 0.96 $ 5.25 Assuming dilution $ 0.57 $ 0.93 $ 0.96 $ 5.25 |
Summary of Significant Accoun_3
Summary of Significant Accounting and Reporting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment consists of the following: September 30, 2023 December 31, 2022 (millions) Property, plant and equipment, gross $ 18,172 $ 17,039 Accumulated depreciation (2,479) (2,090) Property, plant and equipment – net $ 15,693 $ 14,949 |
Noncontrolling Interests | |
Noncontrolling Interest [Line Items] | |
Schedule of Noncontrolling Interest | Details of the activity in noncontrolling interests are below: Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling Three months ended September 30, 2023 (millions) Balances, June 30, 2023 $ 4,722 $ 4,300 $ 840 $ 1,108 $ 10,970 Net income (loss) attributable to noncontrolling interests 84 (148) 114 29 79 Distributions, primarily to related parties — (1) (109) (17) (127) Differential membership investment contributions, net of distributions — 85 — — 85 Payments to Class B noncontrolling interest investors (33) — — — (33) Reclassification of redeemable noncontrolling interests — 105 — — 105 Exercise of Class B noncontrolling interest buyout right (201) — — — (201) Other 2 (1) 2 (4) (1) Balances, September 30, 2023 $ 4,574 $ 4,340 $ 847 $ 1,116 $ 10,877 Nine months ended September 30, 2023 Balances, December 31, 2022 $ 5,031 $ 4,359 $ 891 $ 1,065 $ 11,346 Acquisition of subsidiaries with differential membership interests — 165 — — 165 Acquisition of subsidiary with noncontrolling ownership interest — — 72 — 72 Net income (loss) attributable to noncontrolling interests 255 (506) 157 72 (22) Distributions, primarily to related parties — — (291) (35) (326) Changes in non-economic ownership interests — — — 11 11 Differential membership investment contributions, net of distributions — 126 — — 126 Payments to Class B noncontrolling interest investors (122) — — — (122) Sale of differential membership interest — 92 — — 92 Reclassification of redeemable noncontrolling interests — 105 — — 105 Exercise of Class B noncontrolling interest buyout right (590) — — — (590) Other — (1) 18 3 20 Balances, September 30, 2023 $ 4,574 $ 4,340 $ 847 $ 1,116 $ 10,877 ———————————— (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interests in Silver State, Sunlight Renewables Holdings and Emerald Breeze. Class B Noncontrolling Ownership Interests Differential Membership Interests NEE's Indirect Noncontrolling Ownership Interests (a) Other Noncontrolling Ownership Interests Total Noncontrolling Three months ended September 30, 2022 (millions) Balances, June 30, 2022 $ 4,225 $ 3,069 $ 403 $ 1,042 $ 8,739 Acquisition of subsidiary with differential membership interests — 147 — — 147 Acquisition of subsidiary with noncontrolling ownership interests — — 95 — 95 Net income (loss) attributable to noncontrolling interests 76 (115) 154 36 151 Distributions, primarily to related parties — — (91) (24) (115) Differential membership investment contributions, net of distributions — 82 — — 82 Payments to Class B noncontrolling interest investors (41) — — — (41) Reclassification of redeemable noncontrolling interests — 93 — — 93 Other — — (1) 1 — Balances, September 30, 2022 $ 4,260 $ 3,276 $ 560 $ 1,055 $ 9,151 Nine months ended September 30, 2022 Balances, December 31, 2021 $ 3,783 $ 3,150 $ (38) $ 966 $ 7,861 Sale of Class B noncontrolling interest – net (b) 408 — — — 408 Acquisition of subsidiary with differential membership interests — 147 — — 147 Acquisition of subsidiary with noncontrolling ownership interests — — 95 — 95 Related party note receivable — — 1 — 1 Net income (loss) attributable to noncontrolling interests 214 (431) 756 112 651 Other comprehensive income — — 1 — 1 Distributions, primarily to related parties — — (251) (31) (282) Changes in non-economic ownership interests, net of distributions — — — 1 1 Differential membership investment contributions, net of distributions — 106 — — 106 Payments to Class B noncontrolling interest investors (144) — — — (144) Reclassification of redeemable noncontrolling interests — 304 — — 304 Other (1) — (4) 7 2 Balances, September 30, 2022 $ 4,260 $ 3,276 $ 560 $ 1,055 $ 9,151 ———————————— (a) Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interest in Silver State and Sunlight Renewables Holdings. (b) Represents NEP Renewables III final funding. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 USD ($) MW | Mar. 31, 2023 USD ($) MW | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jul. 26, 2023 MW | Dec. 31, 2022 MW | |
Business Acquisition [Line Items] | ||||||
Proceeds from Sale of Interest in Partnership Unit | $ | $ 153 | $ 136 | ||||
Acquisition related costs | $ | $ 3 | |||||
Emerald Breeze Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Power generation capacity | 111 | |||||
Generation facility capacity (mw) | 1,673 | |||||
Power storage capacity | 65 | |||||
Eight Point Wind | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from Sale of Interest in Partnership Unit | $ | $ 92 | |||||
June 2023 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Power generation capacity | 688 | |||||
Purchase price | $ | $ 566 | |||||
Business Combination, Consideration Transferred, Working Capital, Cash Payment | $ | 32 | |||||
Debt Assumed And Interest Rate Swaps | $ | 141 | |||||
Assumption of Noncontrolling Interest | $ | $ 165 | |||||
Goodwill, deductible period | 15 years | |||||
Montezuma II Wind | ||||||
Business Acquisition [Line Items] | ||||||
Wind project capacity | 78 | |||||
Chaves County Solar | ||||||
Business Acquisition [Line Items] | ||||||
Solar project capacity | 70 | |||||
Live Oak Solar | ||||||
Business Acquisition [Line Items] | ||||||
Solar project capacity | 51 | |||||
River Bend Solar | ||||||
Business Acquisition [Line Items] | ||||||
Solar project capacity | 75 | |||||
Casa Mesa Wind | ||||||
Business Acquisition [Line Items] | ||||||
Wind project capacity | 51 | |||||
New Mexico Wind | ||||||
Business Acquisition [Line Items] | ||||||
Wind project capacity | 204 | |||||
Langdon I | ||||||
Business Acquisition [Line Items] | ||||||
Wind project capacity | 118 | |||||
Langdon II | ||||||
Business Acquisition [Line Items] | ||||||
Wind project capacity | 41 | |||||
Yellow Pine Solar | ||||||
Business Acquisition [Line Items] | ||||||
Generation facility capacity (mw) | 125 | |||||
Power storage capacity | 65 | |||||
Indirect Subsidiary Of NEER | September 2022 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Power storage capacity | 230 | |||||
Indirect Subsidiary Of NEER | Battery Storage Facility | September 2022 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interests percentage | 67% |
Acquisitions - Asset Acquisitio
Acquisitions - Asset Acquisition (Details) - NEP Subsidiaries $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Total consideration transferred | $ 598 |
Cash | 15 |
Accounts receivable, inventory and prepaid expenses | 17 |
Current derivative assets | 4 |
Property, plant and equipment – net | 764 |
Intangible assets – PPAs – net | 141 |
Goodwill | 21 |
Noncurrent derivative assets | 8 |
Noncurrent other assets | 5 |
Accounts payable, accrued expenses and current other liabilities | (5) |
Long-term debt | (153) |
Asset retirement obligation | (12) |
Intangible liabilities – PPAs – net | (37) |
Noncurrent other liabilities | (5) |
Noncontrolling interest | (165) |
Total net identifiable assets, at fair value | $ 598 |
Acquisitions - Supplemental Una
Acquisitions - Supplemental Unaudited Pro forma Results of Operations (Details) - June 2023 Acquisition - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Pro forma revenues | $ 367 | $ 324 | $ 1,059 | $ 1,010 |
Pro forma operating income | 73 | 59 | 159 | 249 |
Pro forma net income | 132 | 243 | 77 | 1,144 |
Pro forma net income attributable to NEP | $ 53 | $ 82 | $ 98 | $ 455 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Renewable Energy Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 291 | $ 232 | $ 825 | $ 747 |
Revenues over the remaining terms of the related contacts | 172 | 172 | ||
Natural Gas Transportation Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 58 | $ 64 | 171 | $ 181 |
Revenues over the remaining terms of the related contacts | $ 1,500 | $ 1,500 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity - Narrative (Details) MWh in Millions, $ in Millions | Oct. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) MWh | Dec. 31, 2022 USD ($) MWh |
Derivative [Line Items] | |||
Derivative Instruments with Contingent Features Liabilities, at Fair Value | $ 15 | $ 37 | |
Subsequent Event | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 1,850 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 2,200 | $ 7,800 | |
Commodity Contract | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MWh | 6 | 5.7 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activity - Fair Value of Derivative Instruments Included in Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 302 | $ 434 |
Derivative Asset, Total | 302 | 434 |
Derivative Liability | 12 | 14 |
Derivative Liability, Total | 12 | 14 |
Current derivative assets | 82 | 65 |
Noncurrent derivative assets | 220 | 369 |
Current other liabilities | 9 | 12 |
Noncurrent other liabilities | 3 | 2 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Netting | (12) | (26) |
Derivative Asset, Total | 297 | 433 |
Derivative Liability, Netting | (12) | (26) |
Derivative Liability, Total | 3 | 11 |
Interest Rate Contract [Member] | Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Interest Rate Contract [Member] | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 309 | 459 |
Derivative Liability | 15 | 37 |
Interest Rate Contract [Member] | Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Netting | (2) | (2) |
Derivative Asset, Total | 5 | 1 |
Derivative Liability, Netting | (2) | (2) |
Derivative Liability, Total | 9 | 3 |
Commodity Contract | Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Commodity Contract | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Commodity Contract | Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 7 | 3 |
Derivative Liability | $ 11 | $ 5 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activity - Gains (Losses) Related to Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 97 | $ 201 | $ (1) | $ 978 |
Commodity Contract | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 5 | $ 1 | $ (4) | $ 1 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash equivalents | $ 0 | $ 5 |
Total assets | 0 | 5 |
Level 1 | ||
Assets: | ||
Cash equivalents | 0 | 5 |
Total assets | 0 | 5 |
Level 2 | ||
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 6,481 | $ 5,288 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | 6,171 | 5,105 |
Level 2 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | 6,152 | 5,086 |
Level 2 | Fair Value [Member] | 2020, 2021, and 2022 Convertible Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 1,391 | $ 1,510 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 19% | 16% | 19% | 14% |
Taxes attributable to the noncontrolling interests | $ (3) | $ (23) | $ (126) | |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ 22 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) pipeline_asset variable_interest_entity MW solar_generation_facility numberOfWindGenerationFacilities equity_investment numberOfBatteryStorageFacilities shares | Dec. 31, 2022 USD ($) variable_interest_entity | |
Variable Interest Entity [Line Items] | ||
Assets | $ 23,213 | $ 23,052 |
Liabilities | 8,803 | 8,280 |
Non-current assets | $ 22,091 | $ 21,190 |
NEP OpCo [Member] | Subsidiaries [Member] | ||
Variable Interest Entity [Line Items] | ||
Generation facility capacity (mw) | MW | 277 | |
Number of investments | equity_investment | 3 | |
Power storage capacity | MW | 230 | |
Economic rights percentage | 100% | |
Differential Membership Interests | ||
Variable Interest Entity [Line Items] | ||
Number of entities consolidated | variable_interest_entity | 20 | 21 |
Number of wind facilities | numberOfWindGenerationFacilities | 40 | |
Number of solar facilities | solar_generation_facility | 8 | |
Number of battery storage facilities | numberOfBatteryStorageFacilities | 1 | |
Differential Membership Interests | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 11,577 | $ 12,127 |
Liabilities | 739 | 1,336 |
Non-Economic Ownership Interest | NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Non-current assets | $ 123 | 98 |
NEP Subsidiaries | Noncontrolling Class B interests [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of entities consolidated | variable_interest_entity | 6 | |
Assets | $ 15,882 | 16,448 |
Liabilities | $ 2,902 | 3,456 |
Generation facility capacity (mw) | MW | 5,622 | |
Number of natural gas pipelines | pipeline_asset | 7 | |
Battery Storage Capacity | MW | 120 | |
Rosmar, Silver State and Meade [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of entities consolidated | variable_interest_entity | 6 | |
Other Acquisitions [Member] | Differential Membership And Noncontrolling Class B Interests [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 7,740 | 8,088 |
Liabilities | 611 | 1,198 |
Sunlight Renewable Holdings | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 435 | 443 |
Liabilities | 11 | 10 |
Sunlight Renewable Holdings | Differential Membership Interests | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 348 | 344 |
Liabilities | $ 11 | $ 10 |
NEP OpCo [Member] | NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership interests percentage | 50% | |
NEP OpCo [Member] | Class B Units, Series 1 [Member] | NextEra Energy Partners, LP [Member] | NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of units issued (in units) | shares | 1,000,000 | |
NEP OpCo [Member] | Class B Units, Series 2 [Member] | NextEra Energy Partners, LP [Member] | NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of units issued (in units) | shares | 1,000,000 | |
NEP OpCo [Member] | ||
Variable Interest Entity [Line Items] | ||
Limited partner interest percentage | 48.60% | |
Noncontrolling limited partner interest percentage | 51.40% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) | 1 Months Ended | |
Oct. 31, 2023 | Sep. 30, 2023 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | NEP OpCo [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 545,000,000 | |
Debt issuances/borrowings | 865,000,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | STX Holdings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 177,000,000 | |
Debt issuances/borrowings | 177,000,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | STX Holdings | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Proceeds from Lines of Credit | $ 60,000,000 | |
Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member] | NEP OpCo [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 11,000,000 | |
Secured Debt [Member] | NEP OpCo [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuances/borrowings | 14,000,000 | |
Letter of Credit [Member] | Revolving Credit Facility [Member] | NEP OpCo [Member] | ||
Debt Instrument [Line Items] | ||
Total amount of letters of credit | 53,000,000 | |
Letter of Credit [Member] | Revolving Credit Facility [Member] | NEP OpCo [Member] | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Proceeds from Lines of Credit | 85,000,000 | |
Repayments of Lines of Credit | $ 35,000,000 | |
Senior Notes [Member] | Limited Recourse Debt | ||
Debt Instrument [Line Items] | ||
Debt issuances/borrowings | $ 330,000,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - Unsecured Debt [Member] | Nov. 06, 2023 $ / shares | Sep. 30, 2023 $ / shares |
2020 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, conversion ratio | 13.4422 | |
Debt instrument, convertible, conversion price (in dollars per unit) | $ 74.3926 | |
Debt instrument, convertible, conversion price, cap (in usd per share) | 117.7886 | |
Capped Call Transaction, Price Risk Option Strike Price | $ 74.3926 | |
Subsequent Event | 2021 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, conversion ratio | 11.3323 | |
Debt instrument, convertible, conversion price (in dollars per unit) | $ 88.2433 | |
Debt instrument, convertible, conversion price, cap (in usd per share) | 110.3038 | |
Capped Call Transaction, Price Risk Option Strike Price | $ 88.2433 |
Equity (Details)
Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||
Oct. 23, 2023 $ / shares | Oct. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jan. 31, 2023 USD ($) project MW | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) shares | Mar. 31, 2023 MW | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Issuance of common units | $ 179 | [1],[2] | $ 364 | [3],[4] | $ 179 | [5],[6] | ||||||||||
Antidilutive shares (in shares) | shares | 0.8 | 1.7 | 0.8 | |||||||||||||
Number Of Wind Projects | project | 1 | |||||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 14,410 | $ 14,410 | $ 12,563 | $ 14,528 | $ 14,410 | $ 12,563 | $ 14,671 | $ 11,959 | $ 10,838 | |||||||
Payments to Noncontrolling interests | 590 | $ 0 | ||||||||||||||
Noncontrolling interests | 10,877 | 10,877 | $ 10,877 | $ 11,346 | ||||||||||||
Third-Party Investors | South Texas Midstream LLC | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Payments to Noncontrolling Interests, Aggregate Consideration | $ 201 | $ 390 | ||||||||||||||
Payments To Noncontrolling Interests, Buyout Right | 0.25 | 0.50 | ||||||||||||||
NEP Renewables II, LLC | Third-Party Owner Of Class B Membership Interests | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Generation facility capacity (mw) | MW | 62 | |||||||||||||||
Proceeds From Sale of Noncontrolling Interest, Distributed To Third Party Owner Of Class B Membership Interests | $ 45 | |||||||||||||||
NEP Renewables IV | Third-Party Owner Of Class B Membership Interests | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Generation facility capacity (mw) | MW | 54 | |||||||||||||||
ATM Program | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Issuance of common units (in shares) | shares | 1.8 | 5.1 | 1.8 | |||||||||||||
Issuance of common units | $ 314 | $ 145 | ||||||||||||||
Stock issuance costs | $ 1 | 3 | 1 | |||||||||||||
Subsequent Event | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Distribution made to limited partner, distributions declared, per unit (in dollars per share) | $ / shares | $ 0.8675 | |||||||||||||||
Subsequent Event | Third-Party Investors | South Texas Midstream LLC | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Payments to Noncontrolling Interests, Aggregate Consideration | $ 201 | |||||||||||||||
Payments To Noncontrolling Interests, Buyout Right | 0.25 | |||||||||||||||
Total | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (16) | (16) | (17) | (16) | (17) | |||||||||||
Total Attributable To Equity Method Investees | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 1 | 1 | 1 | 1 | ||||||||||||
Total Attributable to Noncontrolling Interest [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Noncontrolling interests | (9) | (9) | (9) | (9) | (9) | |||||||||||
Total Attributable to Parent [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Stockholders' equity attributable to parent | $ (7) | $ (7) | $ (8) | $ (7) | $ (8) | |||||||||||
[1]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $14 million. See Note 8 – Common Unit Issuances.[2]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $18 million.[3]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $20 million. See Note 8 – Common Unit Issuances[4]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $30 million.[5]Includes NEE Equity's exchange of NEP OpCo common units for NEP common units. Includes deferred tax impact of approximately $14 million. See Note 8 – Common Unit Issuances[6]See Note 8 – ATM Program for further discussion. Includes deferred tax impact of approximately $18 million. |
Equity - Basic and Diluted Earn
Equity - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Numerator – Net income attributable to NEP | $ 53 | $ 79 | $ 88 | $ 443 |
Denominator: | ||||
Weighted-average number of common units outstanding – basic (in shares) | 93.4 | 85.1 | 91 | 84.3 |
Convertible notes and preferred units (in shares) | 0 | 0.5 | 0 | 0.1 |
Weighted-average number of common units outstanding – assuming dilution (in shares) | 93.4 | 85.6 | 91 | 84.4 |
Earnings per unit attributable to NEP: | ||||
Basic (in shares) | $ 0.57 | $ 0.93 | $ 0.96 | $ 5.25 |
Assuming dilution (in shares) | $ 0.57 | $ 0.93 | $ 0.96 | $ 5.25 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2018 | Dec. 31, 2022 | ||
Related Party Transaction [Line Items] | ||||||||
Due from related parties | $ 62 | $ 62 | $ 41 | |||||
Due to Related Parties, Current, Structured Payables | 177 | 177 | 770 | |||||
Revenues | [1] | 367 | $ 302 | 1,018 | $ 945 | |||
Distributions, primarily to related parties | (127) | (115) | (326) | (282) | ||||
Noncontrolling Interests | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distributions, primarily to related parties | (127) | (115) | (326) | (282) | ||||
Transportation and Fuel Management Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenues | 2 | 3 | 5 | 6 | ||||
NextEra Energy, Inc. [Member] | Noncontrolling Interests | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Tax Expense, Due from Affiliates, Current | $ 18 | |||||||
NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses from transactions with related party | (3) | (43) | (49) | (122) | ||||
NEER | Emerald Breeze Holdings | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes payable | 62 | 62 | 48 | |||||
NEER | Cash Sweep and Credit Support Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses from transactions with related party | (2) | $ (2) | (6) | $ (6) | ||||
Due from related parties | 92 | 92 | 298 | |||||
NEP OpCo [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Supplier Finance Program, Obligation | 177 | $ 177 | $ 770 | |||||
NEP OpCo [Member] | Noncontrolling Interests | ||||||||
Related Party Transaction [Line Items] | ||||||||
Partners' Capital Account, Units, Contributed | (100,169) | |||||||
Increase (Decrease) Due To Differences In Value Of Related Party Tax Receivable And Units Received | $ 13 | |||||||
NEP OpCo [Member] | NextEra Energy, Inc. [Member] | Management Services Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management fee, percent of EBITDA | 1% | |||||||
Annual management fee | $ 4 | |||||||
Related Party Transaction, Additional Management Fee, Threshold, Prior Year EBITDA | 4 | |||||||
NextEra Energy Capital Holdings [Member] | Guarantees and Letters of Credit [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Total amount of letters of credit | $ 2,700 | $ 2,700 | ||||||
[1]Includes related party revenues of $9 million and $9 million for the three months ended September 30, 2023 and 2022, respectively, and $10 million and $21 million for the nine months ended September 30, 2023 and 2022, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting and Reporting Policies - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Apr. 30, 2023 USD ($) in mi | Sep. 30, 2023 USD ($) MW pipeline | Nov. 06, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Restricted cash, current | $ 49 | $ 49 | |||
Redeemable Noncontrolling Interest From Acquisition | 321 | ||||
Reclassified Noncontrolling Interests | $ 93 | ||||
Redeemable Noncontrolling Interest From Sale | 101 | ||||
Reclassified Noncontrolling Interests From Contingencies | $ 105 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pipeline Project | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal consideration | $ 203 | ||||
Pipeline Length | mi | 156 | ||||
Pipeline Width | in | 16 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pipeline Project | Noncontrolling Class B interests [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from sale of pipeline | $ 70 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wind Project | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal consideration | $ 50 | ||||
Wind project capacity | MW | 62 | ||||
Assets held for sale, disposal | 51 | ||||
Liabilities, disposal | $ 1 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wind Project | Noncontrolling Class B interests [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal consideration | $ 45 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Texas Pipelines | Subsequent Event | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal consideration | $ 1,815 | ||||
Non Affiliated Party | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of pipelines | pipeline | 1 | ||||
NEP OpCo [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 51.40% | ||||
Noncontrolling limited partner interest percentage | 51.40% | ||||
NEP OpCo [Member] | Non Affiliated Party | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 10% | ||||
Noncontrolling limited partner interest percentage | 10% | ||||
Silver State [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 50% | ||||
Noncontrolling limited partner interest percentage | 50% | ||||
Star Moon Holdings, LLC | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 50% | ||||
Noncontrolling limited partner interest percentage | 50% | ||||
Emerald Breeze Holdings | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 51% | ||||
Noncontrolling limited partner interest percentage | 51% | ||||
Sunlight Renewable Holdings | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling ownership interest | 33% | ||||
Noncontrolling limited partner interest percentage | 33% |
Summary of Significant Accoun_5
Summary of Significant Accounting and Reporting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Property, plant and equipment, gross | $ 18,172 | $ 17,039 |
Accumulated depreciation | (2,479) | (2,090) |
Property, plant and equipment - net | $ 15,693 | $ 14,949 |
Summary of Significant Accoun_6
Summary of Significant Accounting and Reporting Policies - Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | $ 11,346 | |||||
Sale of Class B noncontrolling interest – net | 1 | $ 407 | ||||
Acquisition of subsidiary with differential membership interests | 72 | |||||
Related party note receivable | 1 | |||||
Net income (loss) attributable to noncontrolling interests | $ (79) | $ (153) | 18 | (660) | ||
Distributions, primarily to related parties | (127) | (115) | (326) | (282) | ||
Changes in non-economic ownership interests | 11 | 1 | ||||
Differential membership investment contributions, net of distributions | 242 | 242 | ||||
Payments to Class B noncontrolling interest investors | (33) | (41) | (122) | (144) | ||
Exercise of Class B noncontrolling interest buyout right | (201) | (590) | ||||
Other | 1 | 5 | 2 | |||
Balances, end of period | 10,877 | 10,877 | ||||
Class B Noncontrolling Ownership Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | 4,722 | 4,225 | 5,031 | 3,783 | ||
Sale of Class B noncontrolling interest – net | 408 | |||||
Net income (loss) attributable to noncontrolling interests | 84 | 76 | 255 | 214 | ||
Payments to Class B noncontrolling interest investors | (33) | (41) | (122) | (144) | ||
Exercise of Class B noncontrolling interest buyout right | (201) | (590) | ||||
Other | 2 | 0 | (1) | |||
Balances, end of period | 4,574 | 4,260 | 4,574 | 4,260 | ||
Differential Membership Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | 4,300 | 3,069 | 4,359 | 3,150 | ||
Acquisition of subsidiaries with differential membership interests | 147 | 165 | 147 | |||
Net income (loss) attributable to noncontrolling interests | (148) | (115) | (506) | (431) | ||
Distributions, primarily to related parties | (1) | |||||
Differential membership investment contributions, net of distributions | 85 | 82 | 126 | 106 | ||
Sale of differential membership interest | 92 | |||||
Reclassification of redeemable noncontrolling interests | 105 | 105 | ||||
Other | (1) | 0 | (1) | 0 | ||
Reclassification of redeemable noncontrolling interests | 93 | 304 | ||||
Balances, end of period | 4,340 | 3,276 | 4,340 | 3,276 | ||
NEE's Indirect Noncontrolling Ownership Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | 840 | [1] | 403 | 891 | [1] | (38) |
Acquisition of subsidiaries with differential membership interests | 0 | 0 | [1] | 0 | ||
Acquisition of subsidiary with differential membership interests | 95 | 72 | [1] | 95 | ||
Related party note receivable | 1 | |||||
Net income (loss) attributable to noncontrolling interests | 114 | [1] | 154 | 157 | [1] | 756 |
Other comprehensive income (loss) | 1 | |||||
Distributions, primarily to related parties | (109) | [1] | (91) | (291) | [1] | (251) |
Other | 2 | [1] | (1) | 18 | [1] | (4) |
Balances, end of period | 847 | [1] | 560 | 847 | [1] | 560 |
Other Noncontrolling Ownership Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | 1,108 | 1,042 | 1,065 | 966 | ||
Net income (loss) attributable to noncontrolling interests | 29 | 36 | 72 | 112 | ||
Distributions, primarily to related parties | (17) | (24) | (35) | (31) | ||
Changes in non-economic ownership interests | 11 | 1 | ||||
Other | (4) | 1 | 3 | 7 | ||
Balances, end of period | 1,116 | 1,055 | 1,116 | 1,055 | ||
Noncontrolling Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balances, beginning of period | 10,970 | 8,739 | 11,346 | 7,861 | ||
Sale of Class B noncontrolling interest – net | 408 | |||||
Acquisition of subsidiaries with differential membership interests | 147 | 165 | 147 | |||
Acquisition of subsidiary with differential membership interests | 95 | 72 | 95 | |||
Related party note receivable | 1 | |||||
Net income (loss) attributable to noncontrolling interests | 79 | 151 | (22) | 651 | ||
Other comprehensive income (loss) | 1 | |||||
Distributions, primarily to related parties | (127) | (115) | (326) | (282) | ||
Changes in non-economic ownership interests | 11 | 1 | ||||
Differential membership investment contributions, net of distributions | 85 | 82 | 126 | 106 | ||
Payments to Class B noncontrolling interest investors | (33) | (41) | (122) | (144) | ||
Sale of differential membership interest | 92 | |||||
Reclassification of redeemable noncontrolling interests | 105 | 105 | ||||
Exercise of Class B noncontrolling interest buyout right | (201) | (590) | ||||
Other | (1) | 0 | 20 | 2 | ||
Reclassification of redeemable noncontrolling interests | 93 | 304 | ||||
Balances, end of period | $ 10,877 | $ 9,151 | $ 10,877 | $ 9,151 | ||
[1]Primarily reflects NEE Equity's noncontrolling interest in NEP OpCo and NEER's noncontrolling interests in Silver State, Sunlight Renewables Holdings and Emerald Breeze. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Pipeline Project | |
Contingencies [Line Items] | |
Remaining commitments | $ 37 |