Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-203369 | |
Entity Registrant Name | Clearway Energy LLC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0407370 | |
Entity Address, Address Line One | 300 Carnegie Center, Suite 300 | |
Entity Address, City or Town | Princeton | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08540 | |
City Area Code | 609 | |
Local Phone Number | 608-1525 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001637757 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Common Class A | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 34,599,645 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 42,738,750 | |
Common Class C | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 82,204,753 | |
Common Class D | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 42,336,750 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - Unaudited - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Revenues | ||||
Total operating revenues | $ 340 | $ 351 | $ 922 | $ 968 |
Operating Costs and Expenses | ||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 98 | 117 | 338 | 334 |
Depreciation, amortization and accretion | 129 | 131 | 379 | 387 |
General and administrative | 8 | 10 | 29 | 29 |
Transaction and integration costs | 0 | 1 | 5 | 4 |
Development costs | 0 | 3 | 2 | 5 |
Total operating costs and expenses | 235 | 262 | 753 | 759 |
Gain on sale of business | 0 | 0 | 1,291 | 0 |
Operating income | 105 | 89 | 1,460 | 209 |
Other Income (Expense) | ||||
Equity in earnings of unconsolidated affiliates | 14 | 20 | 28 | 32 |
Other income, net | 5 | 1 | 10 | 3 |
Loss on debt extinguishment | 0 | 0 | (2) | (42) |
Interest expense | (49) | (84) | (143) | (232) |
Total other expense, net | (30) | (63) | (107) | (239) |
Net Income (Loss) | 75 | 26 | 1,353 | (30) |
Less: Loss attributable to noncontrolling interests and redeemable noncontrolling interests | (3) | (12) | (49) | (114) |
Net Income Attributable to Clearway Energy LLC | $ 78 | $ 38 | $ 1,402 | $ 84 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Unaudited - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 75 | $ 26 | $ 1,353 | $ (30) |
Other Comprehensive Income | ||||
Unrealized gain on derivatives and changes in accumulated OCI/OCL | 14 | 4 | 37 | 17 |
Other comprehensive income | 14 | 4 | 37 | 17 |
Comprehensive Income (Loss) | 89 | 30 | 1,390 | (13) |
Less: Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | (1) | (10) | (43) | (112) |
Comprehensive Income Attributable to Clearway Energy LLC | $ 90 | $ 40 | $ 1,433 | $ 99 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 793 | $ 179 |
Restricted cash | 363 | 475 |
Accounts receivable — trade | 200 | 144 |
Inventory | 48 | 37 |
Derivative instruments | 23 | 0 |
Current assets held-for-sale | 0 | 631 |
Prepayments and other current assets | 61 | 65 |
Total current assets | 1,488 | 1,531 |
Property, plant and equipment, net | 7,437 | 7,650 |
Other Assets | ||
Equity investments in affiliates | 377 | 381 |
Intangible assets for power purchase agreements, net | 2,537 | 2,419 |
Other intangible assets, net | 78 | 80 |
Derivative instruments | 71 | 6 |
Right-of-use assets, net | 519 | 550 |
Other non-current assets | 89 | 101 |
Total other assets | 3,671 | 3,537 |
Total Assets | 12,596 | 12,718 |
Current Liabilities | ||
Current portion of long-term debt — external | 493 | 772 |
Current portion of long-term debt — affiliate | 5 | 1 |
Accounts payable — trade | 53 | 74 |
Accounts payable — affiliates | 16 | 110 |
Derivative instruments | 79 | 46 |
Accrued interest expense | 41 | 54 |
Current liabilities held-for-sale | 0 | 494 |
Accrued expenses and other current liabilities | 104 | 84 |
Total current liabilities | 791 | 1,635 |
Other Liabilities | ||
Long-term debt — external | 6,519 | 6,939 |
Deferred income taxes | 2 | 2 |
Derivative instruments | 291 | 196 |
Long-term lease liabilities | 541 | 561 |
Other non-current liabilities | 191 | 168 |
Total other liabilities | 7,544 | 7,866 |
Total Liabilities | 8,335 | 9,501 |
Redeemable noncontrolling interest in subsidiaries | 7 | 0 |
Commitments and Contingencies | ||
Members’ Equity | ||
Contributed capital | 1,316 | 1,495 |
Retained earnings | 1,328 | 43 |
Accumulated other comprehensive income (loss) | 25 | (13) |
Noncontrolling interest | 1,585 | 1,692 |
Total Members’ Equity | 4,254 | 3,217 |
Total Liabilities and Members’ Equity | $ 12,596 | $ 12,718 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 1,353 | $ (30) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Equity in earnings of unconsolidated affiliates | (28) | (32) |
Distributions from unconsolidated affiliates | 25 | 25 |
Depreciation, amortization and accretion | 379 | 387 |
Amortization of financing costs and debt discounts | 10 | 10 |
Amortization of intangibles | 123 | 107 |
Loss on debt extinguishment | 2 | 42 |
Gain on sale of business | (1,291) | 0 |
Reduction in carrying amount of right-of-use assets | 10 | 8 |
Changes in derivative instruments and amortization of accumulated OCI/OCL | 77 | 44 |
Cash used in changes in other working capital: | ||
Changes in prepaid and accrued liabilities for tolling agreements | 24 | 20 |
Changes in other working capital | (70) | (51) |
Net Cash Provided by Operating Activities | 614 | 530 |
Cash Flows from Investing Activities | ||
Acquisitions, net of cash acquired | 0 | (211) |
Acquisition of Drop Down Assets | (51) | (132) |
Acquisition of Capistrano Wind Portfolio, net of cash acquired | (223) | 0 |
Capital expenditures | (95) | (124) |
Asset purchase from affiliate | 0 | (21) |
Return of investment from unconsolidated affiliates | 12 | 37 |
Proceeds from sale of business | 1,457 | 0 |
Other | 0 | 21 |
Net Cash Provided by (Used in) Investing Activities | 1,100 | (430) |
Cash Flows from Financing Activities | ||
Contributions from noncontrolling interests, net of distributions | 2 | 148 |
(Distributions to) contributions from CEG | (16) | 103 |
Tax-related distributions | (19) | 0 |
Payments of distributions | (214) | (199) |
Distributions to CEG of escrowed amounts | (64) | 0 |
Proceeds from the revolving credit facility | 80 | 377 |
Payments for the revolving credit facility | (325) | (300) |
Proceeds from the issuance of long-term debt — external | 219 | 1,037 |
Proceeds from the issuance of long-term debt — affiliate | 5 | 0 |
Payments of debt issuance costs | (4) | (13) |
Payments for short-term and long-term debt — external | (868) | (1,170) |
Payments for long-term debt — affiliate | (1) | (1) |
Other | (7) | 8 |
Net Cash Used in Financing Activities | (1,212) | (10) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 502 | 90 |
Cash, Cash Equivalents and Restricted Cash at beginning of period | 654 | 465 |
Cash, Cash Equivalents and Restricted Cash at end of period | $ 1,156 | $ 555 |
CONSOLIDATED STATEMENTS OF MEMB
CONSOLIDATED STATEMENTS OF MEMBERS' EQUITY - USD ($) $ in Millions | Total | Mesquite Sky Drop Down | Black Rock Drop Down | Mililani I Drop Down | Agua Caliente | Rattlesnake Drop Down | Capistrano Wind Portfolio | Kawailoa Solar Partnership LLC | CEG | Tax Equity Investors | Clearway Energy, Inc. | Contributed Capital | Contributed Capital Mesquite Sky Drop Down | Contributed Capital Black Rock Drop Down | Contributed Capital Mililani I Drop Down | Contributed Capital Rattlesnake Drop Down | Contributed Capital Capistrano Wind Portfolio | Contributed Capital Kawailoa Solar Partnership LLC | Contributed Capital CEG | Contributed Capital Clearway Energy, Inc. | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) CEG | Retained Earnings (Accumulated Deficit) Clearway Energy, Inc. | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Capistrano Wind Portfolio | Noncontrolling Interest | Noncontrolling Interest Mesquite Sky Drop Down | Noncontrolling Interest Black Rock Drop Down | Noncontrolling Interest Mililani I Drop Down | Noncontrolling Interest Agua Caliente | Noncontrolling Interest Kawailoa Solar Partnership LLC | Noncontrolling Interest CEG | Noncontrolling Interest Tax Equity Investors |
Balance, beginning of period at Dec. 31, 2020 | $ 2,612 | $ 1,723 | $ (50) | $ (33) | $ 972 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | (97) | (29) | (68) | ||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 13 | 10 | 3 | ||||||||||||||||||||||||||||||
(Distributions to) contributions from CEG, non-cash | $ 27 | $ (2) | $ 29 | ||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | 103 | $ 126 | 103 | $ 126 | |||||||||||||||||||||||||||||
Drop downs | $ (118) | $ (118) | |||||||||||||||||||||||||||||||
Agua Caliente acquisition | $ 273 | $ 273 | |||||||||||||||||||||||||||||||
Distributions paid | (28) | $ (38) | (28) | $ (38) | $ 0 | $ 0 | |||||||||||||||||||||||||||
Balance, end of period at Mar. 31, 2021 | 2,873 | 1,640 | (79) | (23) | 1,335 | ||||||||||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2020 | 2,612 | 1,723 | (50) | (33) | 972 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | (30) | ||||||||||||||||||||||||||||||||
Balance, end of period at Sep. 30, 2021 | 2,841 | 1,515 | 32 | (18) | 1,312 | ||||||||||||||||||||||||||||
Balance, beginning of period at Mar. 31, 2021 | 2,873 | 1,640 | (79) | (23) | 1,335 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | 39 | 75 | (36) | ||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | (1) | 1 | (2) | ||||||||||||||||||||||||||||||
(Distributions to) contributions from CEG, non-cash | 3 | 3 | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | 38 | 38 | |||||||||||||||||||||||||||||||
Drop downs | 1 | 1 | 0 | ||||||||||||||||||||||||||||||
Distributions paid | (28) | (38) | (28) | (38) | |||||||||||||||||||||||||||||
Balance, end of period at Jun. 30, 2021 | 2,887 | 1,578 | (4) | (22) | 1,335 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | 26 | ||||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 5 | 4 | 1 | ||||||||||||||||||||||||||||||
(Distributions to) contributions from CEG, non-cash | 2 | 2 | |||||||||||||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | (11) | (11) | |||||||||||||||||||||||||||||||
Distributions paid | (28) | (39) | (26) | (39) | (2) | 0 | |||||||||||||||||||||||||||
Balance, end of period at Sep. 30, 2021 | 2,841 | 1,515 | 32 | (18) | 1,312 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net loss | 25 | 38 | (13) | ||||||||||||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2021 | 3,217 | 1,495 | 43 | (13) | 1,692 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | (100) | (58) | (42) | ||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 16 | 13 | 3 | ||||||||||||||||||||||||||||||
Distributions to CEG, net of contributions, cash | (3) | (3) | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | 28 | 28 | |||||||||||||||||||||||||||||||
Drop downs | $ (8) | $ 1 | $ (30) | $ (7) | $ 2 | $ (41) | $ (1) | $ (1) | $ 11 | ||||||||||||||||||||||||
Distributions paid | (40) | (30) | (40) | (5) | (25) | ||||||||||||||||||||||||||||
Balance, end of period at Mar. 31, 2022 | 3,051 | 1,401 | (40) | 0 | 1,690 | ||||||||||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2021 | 3,217 | 1,495 | 43 | (13) | 1,692 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | 1,353 | ||||||||||||||||||||||||||||||||
Balance, end of period at Sep. 30, 2022 | 4,254 | 1,316 | 1,328 | 25 | 1,585 | ||||||||||||||||||||||||||||
Balance, beginning of period at Mar. 31, 2022 | 3,051 | 1,401 | (40) | 0 | 1,690 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | 1,372 | 1,382 | (10) | ||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 7 | 6 | 1 | ||||||||||||||||||||||||||||||
Contributions from (distributions to) CEG, cash | (20) | 11 | (31) | ||||||||||||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | (10) | (10) | |||||||||||||||||||||||||||||||
Distributions paid | (30) | (41) | (30) | (41) | |||||||||||||||||||||||||||||
Balance, end of period at Jun. 30, 2022 | 4,329 | 1,341 | 1,342 | 6 | 1,640 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net Income (Loss) | 75 | ||||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 14 | 12 | 2 | ||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | 7 | 8 | (1) | ||||||||||||||||||||||||||||||
Drop downs | $ 11 | $ (69) | $ 4 | $ 20 | $ 7 | $ (49) | |||||||||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | (4) | $ (14) | (17) | $ 13 | $ (14) | ||||||||||||||||||||||||||||
Tax-related distributions | (19) | (19) | |||||||||||||||||||||||||||||||
Distributions paid | $ (31) | $ (42) | $ 0 | $ 0 | $ (31) | $ (42) | |||||||||||||||||||||||||||
Balance, end of period at Sep. 30, 2022 | 4,254 | $ 1,316 | 1,328 | $ 25 | 1,585 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net loss | $ 72 | $ 78 | $ (6) |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Clearway Energy LLC, together with its consolidated subsidiaries, or the Company, is an energy infrastructure investor in and owner of modern, sustainable and long-term contracted assets across North America. The Company is sponsored by GIP and TotalEnergies through the portfolio company, Clearway Energy Group LLC, or CEG, which became equally owned by GIP and TotalEnergies as of September 12, 2022, when TotalEnergies acquired, through its investment in an intermediate holding company, 50% of GIP’s interest in CEG. GIP is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. TotalEnergies is a global multi-energy company. The Company is one of the largest renewable energy owners in the U.S. with over 5,500 net MW of installed wind and solar generation projects. The Company’s over 8,000 net MW of assets also includes approximately 2,500 net MW of environmentally-sound, highly efficient natural gas-fired generation facilities. Through this environmentally-sound, diversified and primarily contracted portfolio, the Company endeavors to increase distributions to its unit holders. Substantially all of the Company’s generation assets are under long-term contractual arrangements for the output or capacity from these assets. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions . Clearway Energy, Inc., or Clearway, Inc., consolidates the results of the Company through its controlling interest, with CEG’s interest shown as contributed capital in the Company’s consolidated financial statements. The holders of Clearway, Inc.’s outstanding shares of Class A and Class C common stock are entitled to dividends as declared. CEG receives its distributions from the Company through its ownership of the Company’s Class B and Class D units. As of September 30, 2022, Clearway, Inc. owned 57.86% of the economic interests of the Company, with CEG owning 42.14% of the economic interests of the Company. The following table represents a summarized structure of the Company as of September 30, 2022: Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the SEC’s regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company’s consolidated financial position as of September 30, 2022, and results of operations, comprehensive income and cash flows for the three and nine months ended September 30, 2022 and 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amounts of net earnings during the reporting periods. Actual results could be different from these estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include highly liquid investments with an original maturity of three months or less at the time of purchase. Cash and cash equivalents held at project subsidiaries was $168 million and $146 million as of September 30, 2022 and December 31, 2021, respectively. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: September 30, 2022 December 31, 2021 (In millions) Cash and cash equivalents $ 793 $ 179 Restricted cash 363 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,156 $ 654 Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company’s projects that are restricted in their use. As of September 30, 2022, these restricted funds were comprised of $144 million designated to fund operating expenses, $66 million designated for current debt service payments and $124 million restricted for reserves including debt service, performance obligations and other reserves as well as capital expenditures. The remaining $29 million is held in distributions reserve accounts. In 2020, the members of the partnerships holding the Oahu Solar and Kawailoa Solar projects submitted applications to the state of Hawaii for refundable tax credits based on the cost of construction of the projects. In 2021, the members of the partnerships contributed their respective portions of the tax credits in the amount of $27 million to the Oahu Solar and $22 million to the Kawailoa Solar project companies, which were recorded to restricted cash on the Company’s consolidated balance sheet with an offsetting adjustment to noncontrolling interests. In accordance with the projects’ related agreements, the cash is held in a restricted account and utilized to offset invoiced amounts under the projects’ PPAs. On August 1, 2022, the Company sold its Class A interests in the Kawailoa Partnership, which consolidates the Kawailoa Solar project, to Clearway Renew LLC, as further described in Note 3, Acquisitions and Dispositions , resulting in the removal of $7 million that remained in restricted cash at the time of sale. As of September 30, 2022, $22 million of the $27 million previously contributed to the Oahu Solar projects has been utilized to offset invoiced amounts under the projects’ PPAs. Accumulated Depreciation and Accumulated Amortization The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In millions) Property, Plant and Equipment Accumulated Depreciation $ 3,124 $ 2,501 Intangible Assets Accumulated Amortization 728 605 Distributions The following table lists distributions paid on the Company's Class A, B, C and D units during the nine months ended September 30, 2022: Third Quarter 2022 Second Quarter 2022 First Quarter 2022 Distributions per Class A, B, C and D unit $ 0.3604 $ 0.3536 $ 0.3468 On November 2, 2022, the Company declared a distribution on its Class A, Class B, Class C and Class D units of $0.3672 per unit payable on December 15, 2022 to unit holders of record as of December 1, 2022. In addition to the quarterly distributions, the Company paid $19 million in additional distributions, $11 million of which was distributed to Clearway, Inc. and $8 million of which was distributed to CEG, during the third quarter of 2022 in order for Clearway, Inc. to make certain tax payments associated with the sale of the Thermal Business. Redeemable Noncontrolling Interests To the extent that a third party has the right to redeem their interests for cash or other assets, the Company has included the noncontrolling interest attributable to the third party as a component of temporary equity in the mezzanine section of the consolidated balance sheet. The following table reflects the changes in the Company’s redeemable noncontrolling interest balance for the nine months ended September 30, 2022: (In millions) Balances at December 31, 2021 $ — Cash distributions to redeemable noncontrolling interests (2) Comprehensive income attributable to redeemable noncontrolling interests 9 Balances at September 30, 2022 $ 7 Revenue Recognition Revenue from Contracts with Customers The Company applies the guidance in ASC 606, Revenue from Contracts with Customers, or Topic 606, when recognizing revenue associated with its contracts with customers. The Company’s policies with respect to its various revenue streams are detailed below. In general, the Company applies the invoicing practical expedient to recognize revenue for the revenue streams detailed below, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Power Purchase Agreements, or PPAs The majority of the Company’s revenues are obtained through PPAs or similar contractual agreements. Energy, capacity and where applicable, renewable attributes, from the majority of the Company’s renewable energy assets and certain conventional energy plants is sold through long-term PPAs and tolling agreements to a single counterparty, which is often a utility or commercial customer. The majority of these PPAs are accounted for as operating leases as the Company retained its historical lease assessments and classification upon adoption of ASC 842, Leases . ASC 842 requires the minimum lease payments received to be amortized over the term of the lease and contingent rentals are recorded when the achievement of the contingency becomes probable. Judgment is required by management in determining the economic life of each generating facility, in evaluating whether certain lease provisions constitute minimum payments or represent contingent rent and other factors in determining whether a contract contains a lease and whether the lease is an operating lease or capital lease. Certain of these PPAs have no minimum lease payments and all of the lease revenue under these PPAs is recorded as contingent rent on an actual basis when the electricity is delivered. Renewable Energy Credits, or RECs Renewable energy credits, or RECs, are usually sold through long-term PPAs or through REC contracts with counterparties. Revenue from the sale of self-generated RECs is recognized when the related energy is generated and simultaneously delivered even in cases where there is a certification lag as it has been deemed to be perfunctory. In a bundled contract to sell energy, capacity and/or self-generated RECs, all performance obligations are deemed to be delivered at the same time and hence, timing of recognition of revenue for all performance obligations is the same and occurs over time. In such cases, it is often unnecessary to allocate transaction price to multiple performance obligations. Thermal Revenues Steam and chilled water revenue is recognized as the Company transfers the product to the customer, based on customer usage as determined by meter readings taken at month-end. Some locations read customer meters throughout the month and recognize estimated revenue for the period between meter read date and month-end. For thermal contracts, the Company’s performance obligation to deliver steam and chilled water is satisfied over time and revenue is recognized based on the invoiced amount. The Thermal Business subsidiaries collect, and remit state and local taxes associated with sales to their customers, as required by governmental authorities. These taxes are presented on a net basis in the consolidated statements of income. As contracts for steam and chilled water are long-term contracts, the Company has performance obligations under these contracts that have not yet been satisfied. These performance obligations have transaction prices that are both fixed and variable, and that vary based on the contract duration, customer type, inception date and other contract-specific factors. For the fixed price contracts, the Company cannot accurately estimate the amount of its unsatisfied performance obligations as it will vary based on customer usage, which will depend on factors such as weather and customer activity. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions . Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category for the three and nine months ended September 30, 2022 and 2021, respectively: Three months ended September 30, 2022 (In millions) Conventional Generation Renewables Total Energy revenue (a) $ 2 $ 272 $ 274 Capacity revenue (a) 106 1 107 Contract amortization (6) (36) (42) Other revenues — 18 18 Mark-to-market for economic hedges — (17) (17) Total operating revenues 102 238 340 Less: Mark-to-market for economic hedges — 17 17 Less: Lease revenue (108) (226) (334) Less: Contract amortization 6 36 42 Total revenue from contracts with customers $ — $ 65 $ 65 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Total Energy revenue $ 2 $ 226 $ 228 Capacity revenue 106 — 106 Total $ 108 $ 226 $ 334 Three months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 3 $ 231 $ 33 $ 267 Capacity revenue (a) 120 1 12 133 Contract amortization (5) (32) (1) (38) Other revenues — 14 10 24 Mark-to-market for economic hedges — (35) — (35) Total operating revenues 118 179 54 351 Less: Mark-to-market for economic hedges — 35 — 35 Less: Lease revenue (123) (198) (1) (322) Less: Contract amortization 5 32 1 38 Total revenue from contracts with customers $ — $ 48 $ 54 $ 102 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 3 $ 198 $ 1 $ 202 Capacity revenue 120 — — 120 Total $ 123 $ 198 $ 1 $ 322 Nine months ended September 30, 2022 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 5 $ 773 $ 48 $ 826 Capacity revenue (a) 326 2 18 346 Contract amortization (18) (107) — (125) Other revenues — 59 11 70 Mark-to-market for economic hedges — (195) — (195) Total operating revenues 313 532 77 922 Less: Mark-to-market for economic hedges — 195 — 195 Less: Lease revenue (331) (656) (1) (988) Less: Contract amortization 18 107 — 125 Total revenue from contracts with customers $ — $ 178 $ 76 $ 254 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 5 $ 656 $ 1 $ 662 Capacity revenue 326 — — 326 Total $ 331 $ 656 $ 1 $ 988 Nine months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 6 $ 618 $ 91 $ 715 Capacity revenue (a) 340 1 40 381 Contract amortization (17) (87) (3) (107) Other revenues — 45 24 69 Mark-to-market for economic hedges — (90) — (90) Total operating revenues 329 487 152 968 Less: Mark-to-market for economic hedges — 90 — 90 Less: Lease revenue (346) (571) (2) (919) Less: Contract amortization 17 87 3 107 Total revenue from contracts with customers $ — $ 93 $ 153 $ 246 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 6 $ 571 $ 2 $ 579 Capacity revenue 340 — — 340 Total $ 346 $ 571 $ 2 $ 919 Contract Amortization Assets and liabilities recognized from power sales agreements assumed through acquisitions relating to the sale of electric capacity and energy in future periods arising from differences in contract and market prices are amortized to revenue over the term of each underlying contract based on actual generation and/or contracted volumes or on a straight-line basis, where applicable. Contract Balances The following table reflects the contract assets and liabilities included on the Company’s consolidated balance sheets as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In millions) Accounts receivable, net - Contracts with customers $ 47 $ 44 Accounts receivable, net - Leases 153 100 Total accounts receivable, net $ 200 $ 144 Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide for optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, which affects certain of the Company’s debt and interest rate swap agreements. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. As of September 30, 2022, the Company has applied the amendments to all of its eligible contract modifications, where applicable, during the reference rate reform period. Additionally, the Company has not elected any optional expedients provided in the standard. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions Waiawa Drop Down — On October 3, 2022, the Company, through its indirect subsidiary, Lighthouse Renewable Holdco LLC, acquired Waiawa BL Borrower Holdco LLC, the indirect owner of the Waiawa solar project, a 36 MW solar project with matching storage capacity that is currently under construction and located in Honolulu, Hawaii, from Clearway Renew LLC, a subsidiary of CEG, for cash consideration of $20 million. Lighthouse Renewable Holdco LLC is a partnership between the Company and a third-party investor. The third-party investor also contributed cash consideration of $12 million, which was utilized to acquire their portion of the acquired entity. Waiawa BL Borrower Holdco LLC consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Waiawa TE Holdco LLC, which directly holds the Waiawa solar project. Waiawa has a 20-year PPA with an investment-grade utility that commences when the project reaches commercial operations, as defined in the PPA. The acquisition was funded with existing sources of liquidity. Capistrano Wind Portfolio Acquisition — On August 22, 2022, the Company, through its wholly-owned indirect subsidiary, Capistrano Portfolio Holdco LLC, acquired the Capistrano Wind Portfolio from Capistrano Wind Partners LLC, an indirect subsidiary of CEG, for a base purchase price of approximately $255 million, less working capital adjustments in the net amount of approximately $16 million, representing total net consideration of approximately $239 million. Concurrent with the acquisition, the Company also entered into a development agreement with Clearway Renew LLC, whereby Clearway Renew LLC paid $10 million to the Company at acquisition date for an exclusive right to develop, construct and repower the projects in the Capistrano Wind Portfolio, which was utilized to partially fund the acquisition of the Capistrano Wind Portfolio. The Capistrano Wind Portfolio consists of five wind projects located in Texas, Nebraska and Wyoming with a combined capacity of 413 MW that reached commercial operations between 2008 and 2012. The assets within the portfolio sell power under PPAs with investment-grade counterparties that have a weighted average remaining contract duration of approximately 10 years. The Capistrano Wind Portfolio operations are reflected in the Company’s Renewables segment and the acquisition was funded with existing sources of liquidity. The acquisition was determined to be an asset acquisition and the Company consolidates the Capistrano Wind Portfolio on a prospective basis in its financial statements. The assets and liabilities transferred to the Company relate to interests under common control by GIP and were transferred at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues , which reflects GIP’s basis. The difference between the historical cost of the Company’s net assets acquired of $250 million, less the sum of the cash paid of $239 million and the $7 million in accumulated other comprehensive income transferred to the Company, was recorded as an adjustment to CEG’s contributed capital balance. The following is a summary of assets and liabilities transferred in connection with the acquisition as of August 22, 2022: (In millions) Capistrano Wind Portfolio Other current and non-current assets (a) $ 39 Property, plant and equipment, net 147 Intangible assets for power purchase agreements 237 Right-of-use-assets, net 27 Total assets acquired 450 Long-term debt 162 Long-term lease liabilities 28 Other current and non-current liabilities 10 Total liabilities assumed 200 Net assets acquired $ 250 (a) Includes cash of $12 million and restricted cash of $4 million. Mililani I Drop Down — On March 25, 2022, the Company, through its indirect subsidiary, Lighthouse Renewable Holdco LLC, acquired Mililani BL Borrower Holdco LLC, the indirect owner of the Mililani I solar project, a 39 MW solar project with matching storage capacity located in Honolulu, Hawaii, from Clearway Renew LLC for cash consideration of $22 million. Lighthouse Renewable Holdco LLC is a partnership between the Company and a third-party investor. The third-party investor also contributed cash consideration of $14 million utilized to acquire their portion of the acquired entity. Mililani BL Borrower Holdco LLC consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Mililani TE Holdco LLC, which directly holds the Mililani I solar project, as further described in Note 4, Investments Accounted for by the Equity Method and Variable Interest Entities . Mililani I has a 20-year PPA Business Combinations - Related Issues . The sum of the cash paid of $22 million and the historical cost of the Company’s net liabilities assumed of $8 million was recorded as an adjustment to CEG’s contributed capital balance. In addition, the Company reflected $15 million of the Company’s purchase price, which was contributed back by CEG to pay down the acquired long-term debt, as distributions to CEG, net of contributions, in the consolidated statement of members’ equity. The following is a summary of assets and liabilities transferred in connection with the acquisition as of March 25, 2022: (In millions) Mililani I Other current and non-current assets $ 2 Property, plant and equipment 118 Right-of-use-assets 19 Total assets acquired 139 Long-term debt (a) 100 Long-term lease liabilities 20 Other current and non-current liabilities 27 Total liabilities assumed 147 Net liabilities assumed $ (8) (a) Includes a $16 million construction loan, $27 million sponsor equity bridge loan and $60 million tax equity bridge loan, offset by $3 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s purchase price, which was contributed back to the Company by CEG, of which $27 million was utilized to pay down the acquired long-term debt and $2 million was utilized to pay associated fees. Also at acquisition date, the tax equity investor contributed $18 million into escrow, which was included in restricted cash on the Company’s consolidated balance sheet. The tax equity investor will contribute an additional $42 million when the project reaches substantial completion, which will be utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan. The project is expected to reach substantial completion in the fourth quarter of 2022. Dispositions Kawailoa Sale — On August 1, 2022, the Company sold 100% of its Class A interests in the Kawailoa Partnership to Clearway Renew LLC, a subsidiary of CEG, for cash proceeds of $9 million, which equals the Company’s initial investment. The Kawailoa Partnership is a partnership that consolidates, through its 51% controlling majority interest, a lower-level partnership that is 49% owned by a third-party investor, and which consolidates the Kawailoa solar project through its ownership of a controlling interest in the tax equity fund that holds the project. The assets and liabilities transferred to Clearway Renew LLC relate to interests under common control by GIP and were transferred at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues . This resulted in the Company removing $69 million from members’ equity, inclusive of the noncontrolling interest related to the Kawailoa Partnership at the time of sale. Noncontrolling interests prior to the sale include the interests of the third-party investor, tax equity investor and Clearway Renew LLC. Thermal Disposition — On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR for net proceeds of approximately $1.46 billion, inclusive of working capital adjustments, which excludes approximately $18 million in transaction expenses that were incurred in connection with the disposition. The Thermal Disposition resulted in a gain on sale of business of approximately $1.29 billion, which is net of the $18 million in transaction expenses referenced above. The proceeds from the sale were utilized to repay certain borrowings outstanding as further described in Note 7, Long-term Debt , with the remaining proceeds invested in short-term investments classified as cash and cash equivalents on the Company’s consolidated balance sheet as of September 30, 2022. Effective with the approval by the Board of Directors and signing of the agreement to sell the Thermal Business on October 22, 2021, the Company concluded that all entities that are included within the Thermal Business would be treated as held for sale on a prospective basis, thus the assets and liabilities were reported as separate held for sale line items on the Company’s consolidated balance sheets as of December 31, 2021. As of December 31, 2021, property, plant and equipment represented 78% and intangible assets represented 9% of assets classified as held for sale while long-term debt represented 85% of liabilities classified as held for sale. The Company’s Thermal segment is comprised solely of the Thermal Business's results of operations. |
Investments Accounted for by th
Investments Accounted for by the Equity Method and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments Accounted for by the Equity Method and Variable Interest Entities | Investments Accounted for by the Equity Method and Variable Interest Entities Entities that are Consolidated The Company has a controlling financial interest in certain entities which have been identified as VIEs under ASC 810, Consolidations , or ASC 810. These arrangements are primarily related to tax equity arrangements entered into with third parties in order to monetize certain tax credits associated with wind and solar facilities, as further described under Item 15 — Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities, to the consolidated financial statements included in the Company’s 2021 Form 10 -K. Summarized financial information for the Company’s consolidated VIEs consisted of the following as of September 30, 2022: (In millions) Alta TE Holdco Buckthorn Renewables, LLC DGPV Funds (a) Langford TE Partnership LLC Lighthouse Renewable Holdco LLC (b) Lighthouse Renewable Holdco 2 LLC (c) Other current and non-current assets $ 54 $ 4 $ 95 $ 17 $ 105 $ 48 Property, plant and equipment 312 196 577 127 714 364 Intangible assets 203 — 14 2 — — Total assets 569 200 686 146 819 412 Current and non-current liabilities 38 11 76 55 310 132 Total liabilities 38 11 76 55 310 132 Noncontrolling interest 35 33 14 63 422 239 Net assets less noncontrolling interests $ 496 $ 156 $ 596 $ 28 $ 87 $ 41 (a) DGPV Funds is comprised of DGPV Fund 2 LLC, Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC and Mililani TE Holdco LLC, which are also consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is also a consolidated VIE. (In millions) Oahu Solar Partnership Pinnacle Repowering Partnership LLC Rattlesnake TE Holdco LLC Rosie TargetCo LLC Wildorado TE Holdco Other (a) Other current and non-current assets $ 56 $ 8 $ 14 $ 45 $ 22 $ 17 Property, plant and equipment 166 104 187 241 213 159 Intangible assets — 17 — — — 1 Total assets 222 129 201 286 235 177 Current and non-current liabilities 104 5 17 103 19 73 Total liabilities 104 5 17 103 19 73 Noncontrolling interest 26 49 93 138 114 74 Net assets less noncontrolling interests $ 92 $ 75 $ 91 $ 45 $ 102 $ 30 (a) Other is comprised of Crosswind Transmission, LLC, Hardin Hilltop Wind LLC, Elbow Creek TE Holdco and Spring Canyon TE Holdco projects. The discussion below describes material changes to VIEs during the nine months ended September 30, 2022. Kawailoa Partnership — As described in Note 3, Acquisitions and Dispositions , on August 1, 2022, the Company sold 100% of its Class A interests in the Kawailoa Partnership to Clearway Renew LLC, a subsidiary of CEG. Lighthouse Renewable Holdco LLC — As described in Note 3, Acquisitions and Dispositions , on March 25, 2022, Lighthouse Renewable Holdco LLC acquired the Class B interests in a partnership, Mililani BL Borrower Holdco LLC, which consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Mililani TE Holdco LLC, that holds the Mililani I solar project. The tax equity investor’s interest is shown as noncontrolling interest and the HLBV method is utilized to allocate the income or losses of Mililani TE Holdco LLC. The third-party investor in Lighthouse Renewable Holdco LLC also acquired and contributed an interest in Mililani BL Borrower Holdco LLC to Lighthouse Renewable Holdco LLC. The Company recorded the related noncontrolling interest at historical carrying amount, with the offset to contributed capital. Entities that are not Consolidated The Company has interests in entities that are considered VIEs under ASC 810, but for which it is not considered the primary beneficiary. The Company accounts for its interests in these entities and entities in which it has a significant investment under the equity method of accounting, as further described under Item 15 — Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities, to the consolidated financial statements included in the Company’s 2021 Form 10 -K. The Company’s maximum exposure to loss as of September 30, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below: Name Economic Investment Balance (In millions) Avenal 50% $ 9 Desert Sunlight 25% 246 Elkhorn Ridge 67% 23 GenConn (a) 50% 82 San Juan Mesa 75% 17 $ 377 (a) GenConn is a variable interest entity. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Accounting under ASC 820 ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: • Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2—inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3—unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. In accordance with ASC 820, the Company determines the level in the fair value hierarchy within which each fair value measurement in its entirety falls, based on the lowest level input that is significant to the fair value measurement. For cash and cash equivalents, restricted cash, accounts receivable — trade, accounts payable — trade, accounts payable — affiliates and accrued expenses and other current liabilities, the carrying amounts approximate fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The carrying amounts and estimated fair values of the Company’s recorded financial instruments not carried at fair market value or that do not approximate fair value are as follows: As of September 30, 2022 As of December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion — affiliate $ 5 $ 5 $ 1 $ 1 Long-term debt, including current portion — external (a) 7,077 6,297 7,782 7,997 (a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company’s consolidated balance sheets. The fair value of the Company’s publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. The fair value of debt securities, non-publicly traded long-term debt and certain notes receivable of the Company are based on expected future cash flows discounted at market interest rates, or current interest rates for similar instruments with equivalent credit quality and are classified as Level 3 within the fair value hierarchy. The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 Level 2 Level 3 Level 2 Level 3 (In millions) Long-term debt, including current portion $ 1,757 $ 4,545 $ 2,160 $ 5,838 Recurring Fair Value Measurements The Company records its derivative assets and liabilities at fair market value on its consolidated balance sheet. The following table presents assets and liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: As of September 30, 2022 As of December 31, 2021 Fair Value (a) Fair Value (a) (In millions) Level 2 Level 3 Level 2 Level 3 Derivative assets: Interest rate contracts $ 94 $ — $ 6 $ — Other financial instruments (b) — 21 — 25 Total assets $ 94 $ 21 $ 6 $ 25 Derivative liabilities: Commodity contracts $ — $ 370 $ — $ 179 Interest rate contracts — — 63 — Total liabilities $ — $ 370 $ 63 $ 179 (a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of September 30, 2022 and December 31, 2021. (b) SREC contract. The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Beginning balance $ (332) $ (79) $ (154) $ (15) Settlements 14 3 42 1 Additions due to loss of NPNS exception — — (22) — Total losses for the period included in earnings (31) (37) (215) (90) Purchases — — — (9) Ending balance $ (349) $ (113) $ (349) $ (113) Change in unrealized losses included in earnings for derivatives and other financial instruments held as of September 30, 2022 $ (31) $ (215) Derivative and Financial Instruments Fair Value Measurements The Company's contracts are non-exchange-traded and valued using prices provided by external sources. The Company uses quoted observable forward prices to value its energy contracts. To the extent that observable forward prices are not available, the quoted prices reflect the average of the forward prices from the prior year, adjusted for inflation. As of September 30, 2022, contracts valued with prices provided by models and other valuation techniques make up 100% of derivative liabilities and other financial instruments. The Company’s significant positions classified as Level 3 include physical commodity contracts executed in illiquid markets. The significant unobservable inputs used in developing fair value include illiquid power tenors and location pricing, which is derived by extrapolating pricing as a basis to liquid locations. The tenor pricing and basis spread are based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. The following table quantifies the significant unobservable inputs used in developing the fair value of the Company’s Level 3 positions as of September 30, 2022: September 30, 2022 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Commodity Contracts $ — $ 370 Discounted Cash Flow Forward Market Price (per MWh) $ 23.33 $ 129.06 $ 41.69 Other Financial Instruments 21 — Discounted Cash Flow Forecast annual generation levels of certain DG solar facilities 58,539 MWh 117,078 MWh 114,223 MWh The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2022: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power Sell Increase/(Decrease) Lower/(Higher) Forecast Generation Levels Sell Increase/(Decrease) Higher/(Lower) The fair value of each contract is discounted using a risk-free interest rate. In addition, a credit reserve is applied to reflect credit risk, which is, for interest rate swaps, calculated based on credit default swaps using the bilateral method. For commodities, to the extent that the Net Exposure under a specific master agreement is an asset, the Company uses the counterparty’s default swap rate. If the Net Exposure under a specific master agreement is a liability, the Company uses a proxy of its own default swap rate. For interest rate swaps and commodities, the credit reserve is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the liabilities or that a market participant would be willing to pay for the assets. As of September 30, 2022, the non-performance reserve was a $48 million gain recorded primarily to total operating revenues in the consolidated statement of income. It is possible that future market prices could vary from those used in recording assets and liabilities and such variations could be material. Concentration of Credit Risk In addition to the credit risk discussion as disclosed under Item 15 — Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Company’s 2021 Form 10-K, the following item is a discussion of the concentration of credit risk for the Company’s financial instruments. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. The Company monitors and manages credit risk through credit policies that include: (i) an established credit approval process; (ii) monitoring of counterparties' credit limits on an as needed basis; (iii) as applicable, the use of credit mitigation measures such as margin, collateral, prepayment arrangements, or volumetric limits; (iv) the use of payment netting agreements; and (v) the use of master netting agreements that allow for the netting of positive and negative exposures of various contracts associated with a single counterparty. Risks surrounding counterparty performance and credit could ultimately impact the amount and timing of expected cash flows. The Company seeks to mitigate counterparty risk by having a diversified portfolio of counterparties. Counterparty credit exposure includes credit risk exposure under certain long-term agreements, including solar and other PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company estimates the exposure related to these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. A significant portion of these commodity contracts are with utilities with strong credit quality and public utility commission or other regulatory support. However, such regulated utility counterparties can be impacted by changes in government regulations or adverse financial conditions, which the Company is unable to predict. Certain subsidiaries of the Company sell the output of their facilities to PG&E, a significant counterparty of the Company, under long-term PPAs, and PG&E’s credit rating is below investment-grade. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities This footnote should be read in conjunction with the complete description under Item 15 — Note 7, Accounting for Derivative Instruments and Hedging Activities , to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interest Rate Swaps The Company enters into interest rate swap agreements in order to hedge the variability of expected future cash interest payments. As of September 30, 2022, the Company had interest rate derivative instruments on non-recourse debt extending through 2031, a portion of which were designated as cash flow hedges. Under the interest rate swap agreements, the Company pays a fixed rate and the counterparties to the agreements pay a variable interest rate. Energy-Related Commodities As of September 30, 2022, the Company had energy-related derivative instruments extending through 2033. At September 30, 2022, these contracts were not designated as cash flow or fair value hedges. Volumetric Underlying Derivative Transactions The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of September 30, 2022 and December 31, 2021: Total Volume September 30, 2022 December 31, 2021 Commodity Units (In millions) Natural Gas MMBtu — 2 Power MWh (18) (17) Interest Dollars $ 1,217 $ 1,326 Fair Value of Derivative Instruments The following table summarizes the fair value within the derivative instrument valuation on the consolidated balance sheets: Fair Value Derivative Assets Derivative Liabilities September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 (In millions) Derivatives Designated as Cash Flow Hedges: Interest rate contracts current $ 8 $ — $ — $ 5 Interest rate contracts long-term 21 2 — 3 Total Derivatives Designated as Cash Flow Hedges $ 29 $ 2 $ — $ 8 Derivatives Not Designated as Cash Flow Hedges: Interest rate contracts current $ 15 $ — $ — $ 17 Interest rate contracts long-term 50 4 — 38 Commodity contracts current — — 79 24 Commodity contracts long-term — — 291 155 Total Derivatives Not Designated as Cash Flow Hedges $ 65 $ 4 $ 370 $ 234 Total Derivatives $ 94 $ 6 $ 370 $ 242 The Company has elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty level. As of September 30, 2022 and December 31, 2021, there was no outstanding collateral paid or received. The following tables summarize the offsetting of derivatives by counterparty: Gross Amounts Not Offset in the Statement of Financial Position As of September 30, 2022 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (370) $ — $ (370) Total commodity contracts $ (370) $ — $ (370) Interest rate contracts Derivative assets $ 94 $ — $ 94 Total interest rate contracts $ 94 $ — $ 94 Total derivative instruments $ (276) $ — $ (276) Gross Amounts Not Offset in the Statement of Financial Position As of December 31, 2021 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (179) $ — $ (179) Total commodity contracts $ (179) $ — $ (179) Interest rate contracts: Derivative assets $ 6 $ (5) $ 1 Derivative liabilities (63) 5 (58) Total interest rate contracts $ (57) $ — $ (57) Total derivative instruments $ (236) $ — $ (236) Accumulated Other Comprehensive Income (Loss) The following table summarizes the effects on the Company’s accumulated OCI (OCL) balance attributable to interest rate swaps designated as cash flow hedge derivatives: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Accumulated OCI (OCL) beginning balance $ 10 $ (22) $ (13) $ (35) Reclassified from accumulated OCI (OCL) to income due to realization of previously deferred amounts 2 3 7 9 Capistrano Wind Portfolio Acquisition 7 — 7 — Mark-to-market of cash flow hedge accounting contracts 12 1 30 8 Accumulated OCI (OCL) ending balance 31 (18) 31 (18) Accumulated OCI attributable to noncontrolling interests 6 — 6 — Accumulated OCI (OCL) attributable to Clearway Energy LLC $ 25 $ (18) $ 25 $ (18) Gains expected to be realized from OCI during the next 12 months $ 6 $ 6 Amounts reclassified from accumulated OCI (OCL) into income are recorded to interest expense. Impact of Derivative Instruments on the Consolidated Statements of Income Mark-to-market gains and losses related to the Company’s derivatives are recorded in the consolidated statements of income as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Interest Rate Contracts (Interest expense) $ 33 $ 6 $ 110 $ 42 Commodity Contracts (Mark-to-market for economic hedging activities) (a) (17) (36) (191) (86) (a) Relates to long-term commodity contracts at Elbow Creek Wind Project LLC, or Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky and gains or losses are recognized in operating revenues. During the nine months ended September 30, 2022, the commodity contract for Langford, which previously met the NPNS exception, no longer qualified for NPNS treatment and, accordingly, is accounted for as a derivative and marked to fair value through operating revenues. Prior to the Thermal Disposition, which is further described in Note 3, Acquisitions and Dispositions , a portion of the Company’s derivative commodity contracts were related to its Thermal Business for the purchase of fuel/electricity commodities based on the forecasted usage of the thermal district energy centers. Realized gains and losses on these contracts were reflected in the fuel costs that were permitted to be billed to customers through the related customer contracts or tariffs and, accordingly, no gains or losses were reflected in the consolidated statements of income for these contracts through the period that the Company owned the Thermal Business. See Note 5, Fair Value of Financial Instruments , for a discussion regarding concentration of credit risk. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt This note should be read in conjunction with the complete description under Item 15 — Note 10, Long-term Debt, to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s borrowings, including short-term and long-term portions consisted of the following: (In millions, except rates) September 30, 2022 December 31, 2021 September 30, 2022 interest rate % (a) (b) Letters of Credit Outstanding at September 30, 2022 Intercompany Note with Clearway, Inc. $ 5 $ 1 3.050 2028 Senior Notes 850 850 4.750 2031 Senior Notes 925 925 3.750 2032 Senior Notes 350 350 3.750 Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, due 2023 (c) — 245 L+1.750 $ 112 Bridge Loan, due 2022 — 335 S+1.250 Project-level debt: Agua Caliente Solar LLC, due 2037 665 684 2.395 - 3.633 45 Alta Wind Asset Management LLC, due 2031 12 13 L+2.625 — Alta Wind I-V lease financing arrangements, due 2034 and 2035 727 756 5.696 - 7.015 22 Alta Wind Realty Investments LLC, due 2031 23 24 7.000 — Borrego, due 2024 and 2038 52 54 Various 4 Buckthorn Solar, due 2025 120 123 L+1.750 22 Capistrano Wind Portfolio, due 2029 and 2031 160 — L+2.000 37 Carlsbad Energy Holdings LLC, due 2027 121 136 L+1.750 68 Carlsbad Energy Holdings LLC, due 2038 407 407 4.120 — Carlsbad Holdco, due 2038 203 205 4.210 10 CVSR, due 2037 627 652 2.339 - 3.775 — CVSR Holdco Notes, due 2037 160 169 4.680 13 DG-CS Master Borrower LLC, due 2040 413 441 3.510 30 El Segundo Energy Center, due 2023 130 193 L+1.875 - L+2.500 128 Kawailoa Solar Portfolio LLC, due 2026 — 78 L+1.375 — Laredo Ridge, due 2028 (d) — 72 L+2.125 — Marsh Landing, due 2023 38 84 L+2.375 55 Mililani I, due 2022 and 2024 103 — L+1.000 - L+1.250 3 NIMH Solar, due 2024 171 176 L+2.000 14 Oahu Solar Holdings LLC, due 2026 84 86 L+1.375 10 Rosie Class B LLC, due 2027 77 78 L+1.750 17 Tapestry Wind LLC, due 2031 (d) — 85 L+1.375 — Utah Solar Holdings, due 2036 268 273 3.590 15 Viento Funding II, LLC, due 2023 and 2029 (d) 186 29 S+1.475 26 Walnut Creek, due 2023 34 74 L+1.750 73 WCEP Holdings, LLC, due 2023 27 30 L+3.000 — Other 140 151 Various 193 Subtotal project-level debt: 4,948 5,073 Total debt 7,078 7,779 Less current maturities (498) (773) Less net debt issuance costs (65) (71) Add premiums (e) 4 4 Total long-term debt $ 6,519 $ 6,939 (a) As of September 30, 2022, L+ equals 3 month LIBOR plus x%, except Marsh Landing, due 2023, Mililani I, due 2022 and 2024, and Walnut Creek, due 2023, where L+ equals 1 month LIBOR plus x%. (b) S+ equals SOFR, plus x%. (c) Applicable rate is determined by the borrower leverage ratio, as defined in the credit agreement. (d) Laredo Ridge, due 2028; Tapestry Wind, LLC, due 2031; and Viento Funding II, LLC, due 2023 project-level debt were repaid on March 16, 2022 totaling $186 million and was replaced with $190 million in new project-level debt under Viento Funding II, LLC that was obtained on March 16, 2022 and is due in 2029, as discussed further below. (e) Premiums relate to the 2028 Senior Notes. The financing arrangements listed above contain certain covenants, including financial covenants that the Company is required to be in compliance with during the term of the respective arrangement. As of September 30, 2022, the Company was in compliance with all of the required covenants. The discussion below describes material changes to or additions of long-term debt for the nine months ended September 30, 2022. Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility As of September 30, 2022, the Company had no outstanding borrowings under the revolving credit facility and $112 million in letters of credit outstanding. During the nine months ended September 30, 2022, the Company borrowed $80 million under the revolving credit facility and repaid $325 million, $305 million of which was repaid on May 3, 2022, utilizing the proceeds received from the Thermal Disposition. Bridge Loan Agreement On May 3, 2022, the Company repaid the $335 million in outstanding borrowings under the Bridge Loan Agreement utilizing proceeds received from the Thermal Disposition, as further described in Note 3, Acquisitions and Dispositions . Project-level Debt Capistrano Wind Portfolio On August 22, 2022, as part of the acquisition of the Capistrano Wind Portfolio, as further described in Note 3, Acquisitions and Dispositions , the Company acquired non-recourse project-level debt totaling $164 million held by the Broken Bow, Cedro Hill and Crofton Bluffs wind projects, which is net of $2 million in previously deferred unamortized debt issuance costs. The non-recourse project-level debt bears interest at a rate of LIBOR plus an applicable margin, which is currently 2.00% per annum, and maturities range from September 30, 2029 to July 14, 2031. Mililani I On March 25, 2022, as part of the acquisition of Mililani I, as further described in Note 3, Acquisitions and Dispositions , the Company assumed the project’s financing agreement, which included a $16 million construction loan that converts to a term loan upon the project reaching substantial completion, $60 million tax equity bridge loan and $27 million sponsor equity bridge loan. The sponsor equity bridge loan was repaid at acquisition date, utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s acquisition price, which was contributed back by CEG, and $2 million was utilized to pay associated fees. The tax equity bridge loan will be repaid with the final proceeds received from the tax equity investor upon Mililani I reaching substantial completion, which is expected to occur in the fourth quarter of 2022, along with the $18 million that was contributed into escrow by the tax equity investor at acquisition date. Subsequent to the Mililani I acquisition, the Company borrowed an additional $27 million in construction loans. As of September 30, 2022, the Company had $43 million in outstanding construction loans in addition to the $60 million tax equity bridge loan referenced above. Viento Funding II, LLC On March 16, 2022, the Company, through its indirect subsidiary, Viento Funding II, LLC, entered into a financing agreement which included the issuance of a $190 million term loan as well as $35 million in letters of credit, supported by the Company’s interests in the Elkhorn Ridge, Laredo Ridge, San Juan Mesa and Taloga wind projects. The term loan bears annual interest at a rate of SOFR plus a spread of 0.10% and an applicable margin, which is 1.375% per annum through the fourth anniversary of the term loan and 1.50% per annum thereafter through the maturity date of March 16, 2029. The proceeds from the term loan were used to pay off the existing debt in the amount of $186 million related to Laredo Ridge, Tapestry Wind LLC and Viento Funding II, LLC and to pay related financing costs. The Company recorded a loss on debt extinguishment of $2 million to expense unamortized debt issuance costs. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s segment structure reflects how management currently operates and allocates resources. The Company’s businesses are segregated based on conventional power generation, renewable businesses which consist of solar and wind, and the Thermal Business, which was sold to KKR on May 1, 2022, as further described in Note 3, Acquisitions and Dispositions . The Corporate segment reflects the Company’s corporate costs and includes eliminating entries. The Company’s chief operating decision maker, its Chief Executive Officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, and CAFD, as well as net income (loss). Three months ended September 30, 2022 (In millions) Conventional Generation Renewables Corporate (a) Total Operating revenues $ 102 $ 238 $ — $ 340 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 19 79 — 98 Depreciation, amortization and accretion 33 96 — 129 General and administrative — — 8 8 Operating income (loss) 50 63 (8) 105 Equity in earnings of unconsolidated affiliates 1 13 — 14 Other income, net 1 — 4 5 Interest expense (11) (14) (24) (49) Net Income (Loss) $ 41 $ 62 $ (28) $ 75 Total Assets $ 2,327 $ 9,634 $ 635 $ 12,596 (a) Includes eliminations. Three months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 118 $ 179 $ 54 $ — $ 351 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 20 60 37 — 117 Depreciation, amortization and accretion 34 90 7 — 131 General and administrative — — 1 9 10 Transaction and integration costs — — — 1 1 Development costs — — 1 2 3 Operating income (loss) 64 29 8 (12) 89 Equity in earnings of unconsolidated affiliates 2 18 — — 20 Other income, net — — 1 — 1 Interest expense (14) (41) (5) (24) (84) Net Income (Loss) $ 52 $ 6 $ 4 $ (36) $ 26 (a) Includes eliminations. Nine months ended September 30, 2022 (In millions) Conventional Generation Renewables Thermal Corporate (a ) Total Operating revenues $ 313 $ 532 $ 77 $ — $ 922 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 68 220 50 — 338 Depreciation, amortization and accretion 99 280 — — 379 General and administrative — — 2 27 29 Transaction and integration costs — — — 5 5 Development costs — — 2 — 2 Total operating costs and expenses 167 500 54 32 753 Gain on sale of business — — — 1,291 1,291 Operating income 146 32 23 1,259 1,460 Equity in earnings of unconsolidated affiliates 3 25 — — 28 Other income, net 1 4 — 5 10 Loss on debt extinguishment — (2) — — (2) Interest expense (29) (33) (6) (75) (143) Net Income $ 121 $ 26 $ 17 $ 1,189 $ 1,353 (a) Includes eliminations. Nine months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 329 $ 487 $ 152 $ — $ 968 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 70 166 99 (1) 334 Depreciation, amortization and accretion 99 266 22 — 387 General and administrative — 1 2 26 29 Transaction and integration costs — — — 4 4 Development costs — — 3 2 5 Operating income (loss) 160 54 26 (31) 209 Equity in earnings of unconsolidated affiliates 6 26 — — 32 Other income, net — 1 2 — 3 Loss on debt extinguishment — (1) — (41) (42) Interest expense (41) (103) (14) (74) (232) Net Income (Loss) $ 125 $ (23) $ 14 $ (146) $ (30) (a) Includes eliminations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In addition to the transactions and relationships described elsewhere in the notes to the consolidated financial statements, certain subsidiaries of CEG provide services to the Company and its project entities. Amounts due to CEG subsidiaries are recorded as accounts payable — affiliates and amounts due to the Company from CEG subsidiaries are recorded as accounts receivable — affiliates in the Company’s consolidated balance sheets. The disclosures below summarize the Company’s material related party transactions with CEG and its subsidiaries that are included in the Company’s operating costs. O&M Services Agreements by and between the Company and Clearway Renewable Operation & Maintenance LLC Various wholly-owned subsidiaries of the Company in the Renewables segment are party to services agreements with Clearway Renewable Operation & Maintenance LLC, or RENOM, a wholly-owned subsidiary of CEG, which provides operation and maintenance, or O&M, services to these subsidiaries. The Company incurred total expenses for these services of $19 million and $13 million for the three months ended September 30, 2022 and 2021, respectively. The Company incurred total expenses for these services of $49 million and $40 million for the nine months ended September 30, 2022 and 2021, respectively. There was a balance of $9 million due to RENOM as of both September 30, 2022 and December 31, 2021. Administrative Services Agreements by and between the Company and CEG Various wholly-owned subsidiaries of the Company are parties to services agreements with Clearway Asset Services LLC and Solar Asset Management LLC, two wholly-owned subsidiaries of CEG, which provide various administrative services to the Company's subsidiaries. The Company incurred expenses under these agreements of $3 million for each of the three months ended September 30, 2022 and 2021. The Company incurred expenses under these agreements of $11 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. There was a balance of $2 million due to CEG as of both September 30, 2022 and December 31, 2021. CEG Master Services Agreements The Company is a party to Master Services Agreements with CEG, or MSAs, pursuant to which CEG and certain of its affiliates or third-party service providers provide certain services to the Company, including operational and administrative services, which include human resources, information systems, external affairs, accounting, procurement and risk management services, and the Company provides certain services to CEG, including accounting, internal audit, tax and treasury services, in exchange for the payment of fees in respect of such services. The Company incurred net expenses of $1 million under these agreements for each of the three months ended September 30, 2022 and 2021. The Company incurred net expenses of $4 million and $3 million under these agreements for the nine months ended September 30, 2022 and 2021, respectively. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies This note should be read in conjunction with the complete description under Item 15 — Note 14, Commitments and Contingencies , to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. The Company records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate reserve for the matters discussed below. In addition, legal costs are expensed as incurred. Management assesses such matters based on current information and makes a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. The Company is unable to predict the outcome of the legal proceedings below or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company’s liabilities and contingencies could be at amounts that are different from its currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, the Company and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management’s opinion, the disposition of these ordinary course matters will not materially adversely affect the Company’s consolidated financial position, results of operations, or cash flows. Buckthorn Solar Litigation On October 8, 2019, the City of Georgetown, Texas, or Georgetown, filed a petition in the District Court of Williamson County, Texas naming Buckthorn Westex, LLC, the Company’s subsidiary that owns the Buckthorn Westex solar project, as the defendant, alleging fraud by nondisclosure and breach of contract in connection with the project and the PPA, and seeking (i) rescission and/or cancellation of the PPA, (ii) declaratory judgment that the alleged breaches constitute an event of default under the PPA entitling Georgetown to terminate, and (iii) recovery of all damages, costs of court, and attorneys’ fees. On November 15, 2019, Buckthorn Westex filed an original answer and counterclaims (i) denying Georgetown’s claims, (ii) alleging Georgetown has breached its contracts with Buckthorn Westex by failing to pay amounts due, and (iii) seeking relief in the form of (x) declaratory judgment that Georgetown’s alleged failure to pay amounts due constitute breaches of and an event of default under the PPA and that Buckthorn did not commit any events of default under the PPA, (y) recovery of costs, expenses, interest, and attorneys’ fees, and (z) such other relief to which it is entitled at law or in equity. The case is currently in discovery and is expected to proceed to trial in June 2023. Buckthorn Westex believes the allegations of Georgetown are meritless, and Buckthorn Westex is vigorously defending its rights under the PPA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the SEC’s regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interim results are not necessarily indicative of results for a full year. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amounts of net earnings during the reporting periods. Actual results could be different from these estimates. |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers The Company applies the guidance in ASC 606, Revenue from Contracts with Customers, or Topic 606, when recognizing revenue associated with its contracts with customers. The Company’s policies with respect to its various revenue streams are detailed below. In general, the Company applies the invoicing practical expedient to recognize revenue for the revenue streams detailed below, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Power Purchase Agreements, or PPAs The majority of the Company’s revenues are obtained through PPAs or similar contractual agreements. Energy, capacity and where applicable, renewable attributes, from the majority of the Company’s renewable energy assets and certain conventional energy plants is sold through long-term PPAs and tolling agreements to a single counterparty, which is often a utility or commercial customer. The majority of these PPAs are accounted for as operating leases as the Company retained its historical lease assessments and classification upon adoption of ASC 842, Leases . ASC 842 requires the minimum lease payments received to be amortized over the term of the lease and contingent rentals are recorded when the achievement of the contingency becomes probable. Judgment is required by management in determining the economic life of each generating facility, in evaluating whether certain lease provisions constitute minimum payments or represent contingent rent and other factors in determining whether a contract contains a lease and whether the lease is an operating lease or capital lease. Certain of these PPAs have no minimum lease payments and all of the lease revenue under these PPAs is recorded as contingent rent on an actual basis when the electricity is delivered. Renewable Energy Credits, or RECs Renewable energy credits, or RECs, are usually sold through long-term PPAs or through REC contracts with counterparties. Revenue from the sale of self-generated RECs is recognized when the related energy is generated and simultaneously delivered even in cases where there is a certification lag as it has been deemed to be perfunctory. In a bundled contract to sell energy, capacity and/or self-generated RECs, all performance obligations are deemed to be delivered at the same time and hence, timing of recognition of revenue for all performance obligations is the same and occurs over time. In such cases, it is often unnecessary to allocate transaction price to multiple performance obligations. Thermal Revenues Steam and chilled water revenue is recognized as the Company transfers the product to the customer, based on customer usage as determined by meter readings taken at month-end. Some locations read customer meters throughout the month and recognize estimated revenue for the period between meter read date and month-end. For thermal contracts, the Company’s performance obligation to deliver steam and chilled water is satisfied over time and revenue is recognized based on the invoiced amount. The Thermal Business subsidiaries collect, and remit state and local taxes associated with sales to their customers, as required by governmental authorities. These taxes are presented on a net basis in the consolidated statements of income. As contracts for steam and chilled water are long-term contracts, the Company has performance obligations under these contracts that have not yet been satisfied. These performance obligations have transaction prices that are both fixed and variable, and that vary based on the contract duration, customer type, inception date and other contract-specific factors. For the fixed price contracts, the Company cannot accurately estimate the amount of its unsatisfied performance obligations as it will vary based on customer usage, which will depend on factors such as weather and customer activity. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions . |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide for optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, which affects certain of the Company’s debt and interest rate swap agreements. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. As of September 30, 2022, the Company has applied the amendments to all of its eligible contract modifications, where applicable, during the reference rate reform period. Additionally, the Company has not elected any optional expedients provided in the standard. |
Concentration of Credit Risk | Concentration of Credit Risk In addition to the credit risk discussion as disclosed under Item 15 — Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Company’s 2021 Form 10-K, the following item is a discussion of the concentration of credit risk for the Company’s financial instruments. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. The Company monitors and manages credit risk through credit policies that include: (i) an established credit approval process; (ii) monitoring of counterparties' credit limits on an as needed basis; (iii) as applicable, the use of credit mitigation measures such as margin, collateral, prepayment arrangements, or volumetric limits; (iv) the use of payment netting agreements; and (v) the use of master netting agreements that allow for the netting of positive and negative exposures of various contracts associated with a single counterparty. Risks surrounding counterparty performance and credit could ultimately impact the amount and timing of expected cash flows. The Company seeks to mitigate counterparty risk by having a diversified portfolio of counterparties. Counterparty credit exposure includes credit risk exposure under certain long-term agreements, including solar and other PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company estimates the exposure related to these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. A significant portion of these commodity contracts are with utilities with strong credit quality and public utility commission or other regulatory support. However, such regulated utility counterparties can be impacted by changes in government regulations or adverse financial conditions, which the Company is unable to predict. Certain subsidiaries of the Company sell the output of their facilities to PG&E, a significant counterparty of the Company, under long-term PPAs, and PG&E’s credit rating is below investment-grade. |
Nature of Business (Tables)
Nature of Business (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Clearway Energy Organizational Structure | The following table represents a summarized structure of the Company as of September 30, 2022: |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: September 30, 2022 December 31, 2021 (In millions) Cash and cash equivalents $ 793 $ 179 Restricted cash 363 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,156 $ 654 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: September 30, 2022 December 31, 2021 (In millions) Cash and cash equivalents $ 793 $ 179 Restricted cash 363 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,156 $ 654 |
Schedule of Accumulated Depreciation and Amortization | The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In millions) Property, Plant and Equipment Accumulated Depreciation $ 3,124 $ 2,501 Intangible Assets Accumulated Amortization 728 605 |
Summary of Distributions Made to Limited Liability Company (LLC) Member, by Distribution | The following table lists distributions paid on the Company's Class A, B, C and D units during the nine months ended September 30, 2022: Third Quarter 2022 Second Quarter 2022 First Quarter 2022 Distributions per Class A, B, C and D unit $ 0.3604 $ 0.3536 $ 0.3468 |
Summary of Redeemable Noncontrolling Interest | The following table reflects the changes in the Company’s redeemable noncontrolling interest balance for the nine months ended September 30, 2022: (In millions) Balances at December 31, 2021 $ — Cash distributions to redeemable noncontrolling interests (2) Comprehensive income attributable to redeemable noncontrolling interests 9 Balances at September 30, 2022 $ 7 |
Summary of Disaggregation of Revenue | The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category for the three and nine months ended September 30, 2022 and 2021, respectively: Three months ended September 30, 2022 (In millions) Conventional Generation Renewables Total Energy revenue (a) $ 2 $ 272 $ 274 Capacity revenue (a) 106 1 107 Contract amortization (6) (36) (42) Other revenues — 18 18 Mark-to-market for economic hedges — (17) (17) Total operating revenues 102 238 340 Less: Mark-to-market for economic hedges — 17 17 Less: Lease revenue (108) (226) (334) Less: Contract amortization 6 36 42 Total revenue from contracts with customers $ — $ 65 $ 65 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Total Energy revenue $ 2 $ 226 $ 228 Capacity revenue 106 — 106 Total $ 108 $ 226 $ 334 Three months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 3 $ 231 $ 33 $ 267 Capacity revenue (a) 120 1 12 133 Contract amortization (5) (32) (1) (38) Other revenues — 14 10 24 Mark-to-market for economic hedges — (35) — (35) Total operating revenues 118 179 54 351 Less: Mark-to-market for economic hedges — 35 — 35 Less: Lease revenue (123) (198) (1) (322) Less: Contract amortization 5 32 1 38 Total revenue from contracts with customers $ — $ 48 $ 54 $ 102 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 3 $ 198 $ 1 $ 202 Capacity revenue 120 — — 120 Total $ 123 $ 198 $ 1 $ 322 Nine months ended September 30, 2022 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 5 $ 773 $ 48 $ 826 Capacity revenue (a) 326 2 18 346 Contract amortization (18) (107) — (125) Other revenues — 59 11 70 Mark-to-market for economic hedges — (195) — (195) Total operating revenues 313 532 77 922 Less: Mark-to-market for economic hedges — 195 — 195 Less: Lease revenue (331) (656) (1) (988) Less: Contract amortization 18 107 — 125 Total revenue from contracts with customers $ — $ 178 $ 76 $ 254 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 5 $ 656 $ 1 $ 662 Capacity revenue 326 — — 326 Total $ 331 $ 656 $ 1 $ 988 Nine months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 6 $ 618 $ 91 $ 715 Capacity revenue (a) 340 1 40 381 Contract amortization (17) (87) (3) (107) Other revenues — 45 24 69 Mark-to-market for economic hedges — (90) — (90) Total operating revenues 329 487 152 968 Less: Mark-to-market for economic hedges — 90 — 90 Less: Lease revenue (346) (571) (2) (919) Less: Contract amortization 17 87 3 107 Total revenue from contracts with customers $ — $ 93 $ 153 $ 246 (a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842: (In millions) Conventional Generation Renewables Thermal Total Energy revenue $ 6 $ 571 $ 2 $ 579 Capacity revenue 340 — — 340 Total $ 346 $ 571 $ 2 $ 919 |
Summary of Contract Asset and Liability | The following table reflects the contract assets and liabilities included on the Company’s consolidated balance sheets as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In millions) Accounts receivable, net - Contracts with customers $ 47 $ 44 Accounts receivable, net - Leases 153 100 Total accounts receivable, net $ 200 $ 144 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The following is a summary of assets and liabilities transferred in connection with the acquisition as of August 22, 2022: (In millions) Capistrano Wind Portfolio Other current and non-current assets (a) $ 39 Property, plant and equipment, net 147 Intangible assets for power purchase agreements 237 Right-of-use-assets, net 27 Total assets acquired 450 Long-term debt 162 Long-term lease liabilities 28 Other current and non-current liabilities 10 Total liabilities assumed 200 Net assets acquired $ 250 (a) Includes cash of $12 million and restricted cash of $4 million. The following is a summary of assets and liabilities transferred in connection with the acquisition as of March 25, 2022: (In millions) Mililani I Other current and non-current assets $ 2 Property, plant and equipment 118 Right-of-use-assets 19 Total assets acquired 139 Long-term debt (a) 100 Long-term lease liabilities 20 Other current and non-current liabilities 27 Total liabilities assumed 147 Net liabilities assumed $ (8) (a) Includes a $16 million construction loan, $27 million sponsor equity bridge loan and $60 million tax equity bridge loan, offset by $3 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s purchase price, which was contributed back to the Company by CEG, of which $27 million was utilized to pay down the acquired long-term debt and $2 million was utilized to pay associated fees. Also at acquisition date, the tax equity investor contributed $18 million into escrow, which was included in restricted cash on the Company’s consolidated balance sheet. The tax equity investor will contribute an additional $42 million when the project reaches substantial completion, which will be utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan. The project is expected to reach substantial completion in the fourth quarter of 2022. |
Investments Accounted for by _2
Investments Accounted for by the Equity Method and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | Summarized financial information for the Company’s consolidated VIEs consisted of the following as of September 30, 2022: (In millions) Alta TE Holdco Buckthorn Renewables, LLC DGPV Funds (a) Langford TE Partnership LLC Lighthouse Renewable Holdco LLC (b) Lighthouse Renewable Holdco 2 LLC (c) Other current and non-current assets $ 54 $ 4 $ 95 $ 17 $ 105 $ 48 Property, plant and equipment 312 196 577 127 714 364 Intangible assets 203 — 14 2 — — Total assets 569 200 686 146 819 412 Current and non-current liabilities 38 11 76 55 310 132 Total liabilities 38 11 76 55 310 132 Noncontrolling interest 35 33 14 63 422 239 Net assets less noncontrolling interests $ 496 $ 156 $ 596 $ 28 $ 87 $ 41 (a) DGPV Funds is comprised of DGPV Fund 2 LLC, Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC and Mililani TE Holdco LLC, which are also consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is also a consolidated VIE. (In millions) Oahu Solar Partnership Pinnacle Repowering Partnership LLC Rattlesnake TE Holdco LLC Rosie TargetCo LLC Wildorado TE Holdco Other (a) Other current and non-current assets $ 56 $ 8 $ 14 $ 45 $ 22 $ 17 Property, plant and equipment 166 104 187 241 213 159 Intangible assets — 17 — — — 1 Total assets 222 129 201 286 235 177 Current and non-current liabilities 104 5 17 103 19 73 Total liabilities 104 5 17 103 19 73 Noncontrolling interest 26 49 93 138 114 74 Net assets less noncontrolling interests $ 92 $ 75 $ 91 $ 45 $ 102 $ 30 (a) Other is comprised of Crosswind Transmission, LLC, Hardin Hilltop Wind LLC, Elbow Creek TE Holdco and Spring Canyon TE Holdco projects. |
Equity Method Investments | The Company’s maximum exposure to loss as of September 30, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below: Name Economic Investment Balance (In millions) Avenal 50% $ 9 Desert Sunlight 25% 246 Elkhorn Ridge 67% 23 GenConn (a) 50% 82 San Juan Mesa 75% 17 $ 377 (a) GenConn is a variable interest entity. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Estimated Carrying Values and Fair Value | The carrying amounts and estimated fair values of the Company’s recorded financial instruments not carried at fair market value or that do not approximate fair value are as follows: As of September 30, 2022 As of December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion — affiliate $ 5 $ 5 $ 1 $ 1 Long-term debt, including current portion — external (a) 7,077 6,297 7,782 7,997 (a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company’s consolidated balance sheets. |
Fair Value Option, Disclosures | The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 Level 2 Level 3 Level 2 Level 3 (In millions) Long-term debt, including current portion $ 1,757 $ 4,545 $ 2,160 $ 5,838 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents assets and liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: As of September 30, 2022 As of December 31, 2021 Fair Value (a) Fair Value (a) (In millions) Level 2 Level 3 Level 2 Level 3 Derivative assets: Interest rate contracts $ 94 $ — $ 6 $ — Other financial instruments (b) — 21 — 25 Total assets $ 94 $ 21 $ 6 $ 25 Derivative liabilities: Commodity contracts $ — $ 370 $ — $ 179 Interest rate contracts — — 63 — Total liabilities $ — $ 370 $ 63 $ 179 (a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of September 30, 2022 and December 31, 2021. (b) SREC contract. The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Beginning balance $ (332) $ (79) $ (154) $ (15) Settlements 14 3 42 1 Additions due to loss of NPNS exception — — (22) — Total losses for the period included in earnings (31) (37) (215) (90) Purchases — — — (9) Ending balance $ (349) $ (113) $ (349) $ (113) Change in unrealized losses included in earnings for derivatives and other financial instruments held as of September 30, 2022 $ (31) $ (215) |
Fair Value Measurement Inputs and Valuation Techniques | The following table quantifies the significant unobservable inputs used in developing the fair value of the Company’s Level 3 positions as of September 30, 2022: September 30, 2022 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Commodity Contracts $ — $ 370 Discounted Cash Flow Forward Market Price (per MWh) $ 23.33 $ 129.06 $ 41.69 Other Financial Instruments 21 — Discounted Cash Flow Forecast annual generation levels of certain DG solar facilities 58,539 MWh 117,078 MWh 114,223 MWh The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2022: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power Sell Increase/(Decrease) Lower/(Higher) Forecast Generation Levels Sell Increase/(Decrease) Higher/(Lower) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Notional Volume Buy/(Sell) of NRG Yield's Open derivative Transactions Broken Out by Commodity | The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of September 30, 2022 and December 31, 2021: Total Volume September 30, 2022 December 31, 2021 Commodity Units (In millions) Natural Gas MMBtu — 2 Power MWh (18) (17) Interest Dollars $ 1,217 $ 1,326 |
Fair Value Within the Derivative Instrument Valuation On the Balance Sheets | The following table summarizes the fair value within the derivative instrument valuation on the consolidated balance sheets: Fair Value Derivative Assets Derivative Liabilities September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 (In millions) Derivatives Designated as Cash Flow Hedges: Interest rate contracts current $ 8 $ — $ — $ 5 Interest rate contracts long-term 21 2 — 3 Total Derivatives Designated as Cash Flow Hedges $ 29 $ 2 $ — $ 8 Derivatives Not Designated as Cash Flow Hedges: Interest rate contracts current $ 15 $ — $ — $ 17 Interest rate contracts long-term 50 4 — 38 Commodity contracts current — — 79 24 Commodity contracts long-term — — 291 155 Total Derivatives Not Designated as Cash Flow Hedges $ 65 $ 4 $ 370 $ 234 Total Derivatives $ 94 $ 6 $ 370 $ 242 |
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | Gross Amounts Not Offset in the Statement of Financial Position As of September 30, 2022 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (370) $ — $ (370) Total commodity contracts $ (370) $ — $ (370) Interest rate contracts Derivative assets $ 94 $ — $ 94 Total interest rate contracts $ 94 $ — $ 94 Total derivative instruments $ (276) $ — $ (276) Gross Amounts Not Offset in the Statement of Financial Position As of December 31, 2021 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (179) $ — $ (179) Total commodity contracts $ (179) $ — $ (179) Interest rate contracts: Derivative assets $ 6 $ (5) $ 1 Derivative liabilities (63) 5 (58) Total interest rate contracts $ (57) $ — $ (57) Total derivative instruments $ (236) $ — $ (236) |
Effects of NRG Yield's Accumulated OCI Balance Attributable to Interest Rate Swaps Designated as Cash Flow Hedge Derivatives, Net of Tax | The following table summarizes the effects on the Company’s accumulated OCI (OCL) balance attributable to interest rate swaps designated as cash flow hedge derivatives: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Accumulated OCI (OCL) beginning balance $ 10 $ (22) $ (13) $ (35) Reclassified from accumulated OCI (OCL) to income due to realization of previously deferred amounts 2 3 7 9 Capistrano Wind Portfolio Acquisition 7 — 7 — Mark-to-market of cash flow hedge accounting contracts 12 1 30 8 Accumulated OCI (OCL) ending balance 31 (18) 31 (18) Accumulated OCI attributable to noncontrolling interests 6 — 6 — Accumulated OCI (OCL) attributable to Clearway Energy LLC $ 25 $ (18) $ 25 $ (18) Gains expected to be realized from OCI during the next 12 months $ 6 $ 6 |
Derivative Gains and Losses | Mark-to-market gains and losses related to the Company’s derivatives are recorded in the consolidated statements of income as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (In millions) Interest Rate Contracts (Interest expense) $ 33 $ 6 $ 110 $ 42 Commodity Contracts (Mark-to-market for economic hedging activities) (a) (17) (36) (191) (86) (a) Relates to long-term commodity contracts at Elbow Creek Wind Project LLC, or Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky and gains or losses are recognized in operating revenues. During the nine months ended September 30, 2022, the commodity contract for Langford, which previously met the NPNS exception, no longer qualified for NPNS treatment and, accordingly, is accounted for as a derivative and marked to fair value through operating revenues. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | This note should be read in conjunction with the complete description under Item 15 — Note 10, Long-term Debt, to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s borrowings, including short-term and long-term portions consisted of the following: (In millions, except rates) September 30, 2022 December 31, 2021 September 30, 2022 interest rate % (a) (b) Letters of Credit Outstanding at September 30, 2022 Intercompany Note with Clearway, Inc. $ 5 $ 1 3.050 2028 Senior Notes 850 850 4.750 2031 Senior Notes 925 925 3.750 2032 Senior Notes 350 350 3.750 Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, due 2023 (c) — 245 L+1.750 $ 112 Bridge Loan, due 2022 — 335 S+1.250 Project-level debt: Agua Caliente Solar LLC, due 2037 665 684 2.395 - 3.633 45 Alta Wind Asset Management LLC, due 2031 12 13 L+2.625 — Alta Wind I-V lease financing arrangements, due 2034 and 2035 727 756 5.696 - 7.015 22 Alta Wind Realty Investments LLC, due 2031 23 24 7.000 — Borrego, due 2024 and 2038 52 54 Various 4 Buckthorn Solar, due 2025 120 123 L+1.750 22 Capistrano Wind Portfolio, due 2029 and 2031 160 — L+2.000 37 Carlsbad Energy Holdings LLC, due 2027 121 136 L+1.750 68 Carlsbad Energy Holdings LLC, due 2038 407 407 4.120 — Carlsbad Holdco, due 2038 203 205 4.210 10 CVSR, due 2037 627 652 2.339 - 3.775 — CVSR Holdco Notes, due 2037 160 169 4.680 13 DG-CS Master Borrower LLC, due 2040 413 441 3.510 30 El Segundo Energy Center, due 2023 130 193 L+1.875 - L+2.500 128 Kawailoa Solar Portfolio LLC, due 2026 — 78 L+1.375 — Laredo Ridge, due 2028 (d) — 72 L+2.125 — Marsh Landing, due 2023 38 84 L+2.375 55 Mililani I, due 2022 and 2024 103 — L+1.000 - L+1.250 3 NIMH Solar, due 2024 171 176 L+2.000 14 Oahu Solar Holdings LLC, due 2026 84 86 L+1.375 10 Rosie Class B LLC, due 2027 77 78 L+1.750 17 Tapestry Wind LLC, due 2031 (d) — 85 L+1.375 — Utah Solar Holdings, due 2036 268 273 3.590 15 Viento Funding II, LLC, due 2023 and 2029 (d) 186 29 S+1.475 26 Walnut Creek, due 2023 34 74 L+1.750 73 WCEP Holdings, LLC, due 2023 27 30 L+3.000 — Other 140 151 Various 193 Subtotal project-level debt: 4,948 5,073 Total debt 7,078 7,779 Less current maturities (498) (773) Less net debt issuance costs (65) (71) Add premiums (e) 4 4 Total long-term debt $ 6,519 $ 6,939 (a) As of September 30, 2022, L+ equals 3 month LIBOR plus x%, except Marsh Landing, due 2023, Mililani I, due 2022 and 2024, and Walnut Creek, due 2023, where L+ equals 1 month LIBOR plus x%. (b) S+ equals SOFR, plus x%. (c) Applicable rate is determined by the borrower leverage ratio, as defined in the credit agreement. (d) Laredo Ridge, due 2028; Tapestry Wind, LLC, due 2031; and Viento Funding II, LLC, due 2023 project-level debt were repaid on March 16, 2022 totaling $186 million and was replaced with $190 million in new project-level debt under Viento Funding II, LLC that was obtained on March 16, 2022 and is due in 2029, as discussed further below. (e) Premiums relate to the 2028 Senior Notes. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company’s chief operating decision maker, its Chief Executive Officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, and CAFD, as well as net income (loss). Three months ended September 30, 2022 (In millions) Conventional Generation Renewables Corporate (a) Total Operating revenues $ 102 $ 238 $ — $ 340 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 19 79 — 98 Depreciation, amortization and accretion 33 96 — 129 General and administrative — — 8 8 Operating income (loss) 50 63 (8) 105 Equity in earnings of unconsolidated affiliates 1 13 — 14 Other income, net 1 — 4 5 Interest expense (11) (14) (24) (49) Net Income (Loss) $ 41 $ 62 $ (28) $ 75 Total Assets $ 2,327 $ 9,634 $ 635 $ 12,596 (a) Includes eliminations. Three months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 118 $ 179 $ 54 $ — $ 351 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 20 60 37 — 117 Depreciation, amortization and accretion 34 90 7 — 131 General and administrative — — 1 9 10 Transaction and integration costs — — — 1 1 Development costs — — 1 2 3 Operating income (loss) 64 29 8 (12) 89 Equity in earnings of unconsolidated affiliates 2 18 — — 20 Other income, net — — 1 — 1 Interest expense (14) (41) (5) (24) (84) Net Income (Loss) $ 52 $ 6 $ 4 $ (36) $ 26 (a) Includes eliminations. Nine months ended September 30, 2022 (In millions) Conventional Generation Renewables Thermal Corporate (a ) Total Operating revenues $ 313 $ 532 $ 77 $ — $ 922 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 68 220 50 — 338 Depreciation, amortization and accretion 99 280 — — 379 General and administrative — — 2 27 29 Transaction and integration costs — — — 5 5 Development costs — — 2 — 2 Total operating costs and expenses 167 500 54 32 753 Gain on sale of business — — — 1,291 1,291 Operating income 146 32 23 1,259 1,460 Equity in earnings of unconsolidated affiliates 3 25 — — 28 Other income, net 1 4 — 5 10 Loss on debt extinguishment — (2) — — (2) Interest expense (29) (33) (6) (75) (143) Net Income $ 121 $ 26 $ 17 $ 1,189 $ 1,353 (a) Includes eliminations. Nine months ended September 30, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 329 $ 487 $ 152 $ — $ 968 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 70 166 99 (1) 334 Depreciation, amortization and accretion 99 266 22 — 387 General and administrative — 1 2 26 29 Transaction and integration costs — — — 4 4 Development costs — — 3 2 5 Operating income (loss) 160 54 26 (31) 209 Equity in earnings of unconsolidated affiliates 6 26 — — 32 Other income, net — 1 2 — 3 Loss on debt extinguishment — (1) — (41) (42) Interest expense (41) (103) (14) (74) (232) Net Income (Loss) $ 125 $ (23) $ 14 $ (146) $ (30) (a) Includes eliminations. |
Nature of Business (Details)
Nature of Business (Details) - MW | 9 Months Ended | ||
Sep. 12, 2022 | Sep. 30, 2022 | May 01, 2022 | |
Nature of Business [Line Items] | |||
Power generation capacity, megawatts (over) | 8,000 | ||
Global Infrastructure Partners | Total Energies | |||
Nature of Business [Line Items] | |||
Ownership interest (as a percentage) | 50% | ||
Clearway Energy LLC | Clearway Energy, Inc. | |||
Nature of Business [Line Items] | |||
Ownership interest (as a percentage) | 57.86% | ||
CEG | Clearway Energy LLC | |||
Nature of Business [Line Items] | |||
Ownership interest (as a percentage) | 42.14% | ||
CEG | Clearway Energy, Inc. | |||
Nature of Business [Line Items] | |||
Voting Interest (as a percentage) | 54.93% | ||
Public Shareholders | Clearway Energy, Inc. | |||
Nature of Business [Line Items] | |||
Voting Interest (as a percentage) | 45.07% | ||
Discontinued Operations, Disposed of by Sale | Thermal | |||
Nature of Business [Line Items] | |||
Percentage of assets ownership sold | 100% | ||
Conventional Generation, Utility-Scale Solar, Distributed Solar, and Wind | |||
Nature of Business [Line Items] | |||
Power generation capacity, megawatts (over) | 5,500 | ||
Generational Facilities and District Energy Systems | |||
Nature of Business [Line Items] | |||
Power generation capacity, megawatts (over) | 2,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Aug. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, held at project subsidiaries | $ 168 | $ 146 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | 793 | 179 | |||
Restricted cash | 363 | 475 | |||
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | 1,156 | 654 | $ 555 | $ 465 | |
Discontinued Operations, Disposed of by Sale | Kawailoa Solar Partnership LLC | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Removal of restricted cash | $ 7 | ||||
State of Hawaii | Prepayments and other current assets | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Refundable tax credit receivable | 27 | ||||
Amount of restricted funds used to offset amounts under the PPAs | 22 | ||||
State of Hawaii | Prepayments and other current assets | Oahu Solar Partnership | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Refundable tax credit receivable | 27 | ||||
State of Hawaii | Prepayments and other current assets | Kawailoa Solar Partnership LLC | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Refundable tax credit receivable | $ 22 | ||||
Long Term Debt Current | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Restricted cash | 66 | ||||
Debt Service Obligations | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Restricted cash | 124 | ||||
Cash Distribution | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Restricted cash | 29 | ||||
Operating Funds | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Restricted cash | $ 144 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accumulated Depreciation, Accumulated Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Property, Plant and Equipment Accumulated Depreciation | $ 3,124 | $ 2,501 |
Intangible Assets Accumulated Amortization | $ 728 | $ 605 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Distributions Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Nov. 02, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Special Distribution | Clearway Energy LLC | ||||
Class of Stock [Line Items] | ||||
Special distribution paid | $ 19 | |||
Special Distribution | Clearway Energy LLC | Clearway Energy, Inc. | ||||
Class of Stock [Line Items] | ||||
Special distribution paid | 11 | |||
Special Distribution | Clearway Energy LLC | CEG | ||||
Class of Stock [Line Items] | ||||
Special distribution paid | $ 8 | |||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Distributions per Class A, B, C and D unit (in dollars per share) | $ 0.3604 | $ 0.3536 | $ 0.3468 | |
Common Class A | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Distribution per Class A, B, C and D unit, delcared (in dollars per share) | $ 0.3672 | |||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Distributions per Class A, B, C and D unit (in dollars per share) | 0.3604 | 0.3536 | 0.3468 | |
Common Class B | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Distribution per Class A, B, C and D unit, delcared (in dollars per share) | 0.3672 | |||
Common Class C | ||||
Class of Stock [Line Items] | ||||
Distributions per Class A, B, C and D unit (in dollars per share) | 0.3604 | 0.3536 | 0.3468 | |
Common Class C | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Distribution per Class A, B, C and D unit, delcared (in dollars per share) | 0.3672 | |||
Common Class D | ||||
Class of Stock [Line Items] | ||||
Distributions per Class A, B, C and D unit (in dollars per share) | $ 0.3604 | $ 0.3536 | $ 0.3468 | |
Common Class D | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Distribution per Class A, B, C and D unit, delcared (in dollars per share) | $ 0.3672 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies -Redeemable Noncontrolling Interests (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balances at December 31, 2021 | $ 0 |
Cash distributions to redeemable noncontrolling interests | (2) |
Comprehensive income attributable to redeemable noncontrolling interests | 9 |
Balances at September 30, 2022 | $ (7) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Recognition (Details) | May 01, 2022 |
Discontinued Operations, Disposed of by Sale | Thermal | |
Schedule of Asset Acquisition [Line Items] | |
Percentage of assets ownership sold | 100% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 340 | $ 351 | $ 922 | $ 968 |
Total operating revenues | 340 | 351 | 922 | 968 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 340 | 351 | 922 | 968 |
Contract amortization | (42) | (38) | (125) | (107) |
Mark-to-market for economic hedges | (17) | (35) | (195) | (90) |
Total operating revenues | 340 | 351 | 922 | 968 |
Less: Mark-to-market for economic hedges | 17 | 35 | 195 | 90 |
Less: Lease revenue | (334) | (322) | (988) | (919) |
Less: Contract amortization | 42 | 38 | 125 | 107 |
Total revenue from contracts with customers | 65 | 102 | 254 | 246 |
Operating Segments | Energy Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 274 | 267 | 826 | 715 |
Total operating revenues | 274 | 267 | 826 | 715 |
Less: Lease revenue | (228) | (202) | (662) | (579) |
Operating Segments | Capacity Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 107 | 133 | 346 | 381 |
Total operating revenues | 107 | 133 | 346 | 381 |
Less: Lease revenue | (106) | (120) | (326) | (340) |
Operating Segments | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 18 | 24 | 70 | 69 |
Total operating revenues | 18 | 24 | 70 | 69 |
Operating Segments | Conventional Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 102 | 118 | 313 | 329 |
Contract amortization | (6) | (5) | (18) | (17) |
Mark-to-market for economic hedges | 0 | 0 | 0 | 0 |
Total operating revenues | 102 | 118 | 313 | 329 |
Less: Mark-to-market for economic hedges | 0 | 0 | 0 | 0 |
Less: Lease revenue | (108) | (123) | (331) | (346) |
Less: Contract amortization | 6 | 5 | 18 | 17 |
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Conventional Generation | Energy Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 2 | 3 | 5 | 6 |
Total operating revenues | 2 | 3 | 5 | 6 |
Less: Lease revenue | (2) | (3) | (5) | (6) |
Operating Segments | Conventional Generation | Capacity Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 106 | 120 | 326 | 340 |
Total operating revenues | 106 | 120 | 326 | 340 |
Less: Lease revenue | (106) | (120) | (326) | (340) |
Operating Segments | Conventional Generation | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Total operating revenues | 0 | 0 | 0 | 0 |
Operating Segments | Renewables | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 238 | 179 | 532 | 487 |
Contract amortization | (36) | (32) | (107) | (87) |
Mark-to-market for economic hedges | (17) | (35) | (195) | (90) |
Total operating revenues | 238 | 179 | 532 | 487 |
Less: Mark-to-market for economic hedges | 17 | 35 | 195 | 90 |
Less: Lease revenue | (226) | (198) | (656) | (571) |
Less: Contract amortization | 36 | 32 | 107 | 87 |
Total revenue from contracts with customers | 65 | 48 | 178 | 93 |
Operating Segments | Renewables | Energy Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 272 | 231 | 773 | 618 |
Total operating revenues | 272 | 231 | 773 | 618 |
Less: Lease revenue | (226) | (198) | (656) | (571) |
Operating Segments | Renewables | Capacity Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 1 | 1 | 2 | 1 |
Total operating revenues | 1 | 1 | 2 | 1 |
Less: Lease revenue | 0 | 0 | 0 | 0 |
Operating Segments | Renewables | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 18 | 14 | 59 | 45 |
Total operating revenues | $ 18 | 14 | 59 | 45 |
Operating Segments | Thermal | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 54 | 77 | 152 | |
Contract amortization | (1) | 0 | (3) | |
Mark-to-market for economic hedges | 0 | 0 | 0 | |
Total operating revenues | 54 | 77 | 152 | |
Less: Mark-to-market for economic hedges | 0 | 0 | 0 | |
Less: Lease revenue | (1) | (1) | (2) | |
Less: Contract amortization | 1 | 0 | 3 | |
Total revenue from contracts with customers | 54 | 76 | 153 | |
Operating Segments | Thermal | Energy Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 33 | 48 | 91 | |
Total operating revenues | 33 | 48 | 91 | |
Less: Lease revenue | (1) | (1) | (2) | |
Operating Segments | Thermal | Capacity Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 12 | 18 | 40 | |
Total operating revenues | 12 | 18 | 40 | |
Less: Lease revenue | 0 | 0 | 0 | |
Operating Segments | Thermal | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 10 | 11 | 24 | |
Total operating revenues | $ 10 | $ 11 | $ 24 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Total accounts receivable, net | $ 200 | $ 144 |
Accounts receivable, net - Contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Total accounts receivable, net | 47 | 44 |
Accounts receivable, net - Leases | ||
Disaggregation of Revenue [Line Items] | ||
Total accounts receivable, net | $ 153 | $ 100 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) $ in Millions | 9 Months Ended | |||||||
Oct. 03, 2022 USD ($) MW | Aug. 22, 2022 USD ($) project MW | Aug. 01, 2022 USD ($) | May 01, 2022 USD ($) | Mar. 25, 2022 USD ($) MW | Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | Dec. 31, 2021 | |
Schedule of Asset Acquisition [Line Items] | ||||||||
Power generation capacity, megawatts | MW | 8,000 | |||||||
Payments for asset acquisition | $ 0 | $ 211 | ||||||
Kawailoa Solar Partnership LLC | Discontinued Operations, Disposed of by Sale | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Percentage of assets ownership sold | 100% | |||||||
Removal of noncontrolling interest | $ 69 | |||||||
Consideration received in asset disposition | $ 9 | |||||||
Thermal | Discontinued Operations, Disposed of by Sale | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Percentage of assets ownership sold | 100% | |||||||
Consideration received in asset disposition | $ 1,460 | |||||||
Transaction expenses | 18 | |||||||
Gain on sale of asset | $ 1,290 | |||||||
Disposition, property, plant and equipment, percent | 78% | |||||||
Disposition, intangible assets, percent | 9% | |||||||
Disposition, liabilities held for sale, percent | 85% | |||||||
Kawailoa Solar Project | Third Party Investor | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Ownership interest | 49% | |||||||
Kawailoa Solar Project | Kawailoa Solar Partnership LLC | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Ownership interest | 51% | |||||||
Waiawa Drop Down | Lighthouse Renewable Holdco LLC | Solar Power Generation and Storage | Lighthouse Renewable Holdco LLC | Subsequent Event | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Power generation capacity, megawatts | MW | 36 | |||||||
Power purchase agreement period (in years) | 20 years | |||||||
Consideration transferred in asset acquisition | $ 20 | |||||||
Waiawa Drop Down | Lighthouse Renewable Holdco LLC | Solar Power Generation and Storage | Lighthouse Renewable Holdco LLC | Third Party Investor | Subsequent Event | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Payments for asset acquisition | $ 12 | |||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Power generation capacity, megawatts | MW | 413 | |||||||
Consideration transferred in asset acquisition | $ 255 | |||||||
Purchase price adjustments | 16 | |||||||
Net of purchase price adjustments | 239 | |||||||
Net liabilities assumed | 250 | |||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | Clearway Energy LLC | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Development fees | $ 10 | |||||||
Number of wind projects | project | 5 | |||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | CEG | Noncontrolling Interest | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Net liabilities assumed | $ 7 | |||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | Capistrano Portfolio Holdco LLC | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Power purchase agreement period (in years) | 10 years | |||||||
Mililani I Drop Down | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Consideration transferred in asset acquisition | $ 22 | |||||||
Net liabilities assumed | (8) | |||||||
Mililani I Drop Down | Tax Equity Investors | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Payments to fund project reserve accounts | $ 15 | |||||||
Mililani I Drop Down | Lighthouse Renewable Holdco LLC | Solar | Lighthouse Renewable Holdco LLC | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Power generation capacity, megawatts | MW | 39 | |||||||
Payments for asset acquisition | $ 22 | |||||||
Power purchase agreement period (in years) | 20 years | |||||||
Mililani I Drop Down | Lighthouse Renewable Holdco LLC | Solar | Lighthouse Renewable Holdco LLC | Third Party Investor | ||||||||
Schedule of Asset Acquisition [Line Items] | ||||||||
Payments for asset acquisition | $ 14 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Assets and Liabilities Transferred (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Aug. 22, 2022 | Mar. 25, 2022 | Sep. 30, 2022 | |
Capistrano Wind Portfolio | |||
Schedule of Asset Acquisition [Line Items] | |||
Other current and non-current assets | $ 39 | ||
Property, plant and equipment | 147 | ||
Intangible assets for power purchase agreements | 237 | ||
Right-of-use-assets | 27 | ||
Total assets acquired | 450 | ||
Long-term debt | 162 | ||
Long-term lease liabilities | 28 | ||
Other current and non-current liabilities | 10 | ||
Total liabilities assumed | 200 | ||
Net liabilities assumed | 250 | ||
Cash | 12 | ||
Restricted cash | 4 | ||
Capistrano Wind Portfolio | Construction loans | |||
Schedule of Asset Acquisition [Line Items] | |||
Unamortized debt issuance costs | $ 2 | ||
Mililani I Drop Down | |||
Schedule of Asset Acquisition [Line Items] | |||
Other current and non-current assets | $ 2 | ||
Property, plant and equipment | 118 | ||
Right-of-use-assets | 19 | ||
Total assets acquired | 139 | ||
Long-term debt | 100 | ||
Long-term lease liabilities | 20 | ||
Other current and non-current liabilities | 27 | ||
Total liabilities assumed | 147 | ||
Net liabilities assumed | (8) | ||
Unamortized debt issuance costs | 3 | ||
Expected contributions upon substantial completion | 42 | ||
Mililani I Drop Down | Tax Equity Investors | |||
Schedule of Asset Acquisition [Line Items] | |||
Payments to fund project reserve accounts | 15 | ||
Contributions from noncontrolling interests, net of distributions | 18 | ||
Mililani I Drop Down | CEG | |||
Schedule of Asset Acquisition [Line Items] | |||
Repayment of debt at asset acquisition | 27 | ||
Payments for associated fees | 2 | ||
Mililani I Drop Down | Construction loans | |||
Schedule of Asset Acquisition [Line Items] | |||
Long-term debt | 16 | ||
Mililani I Drop Down | Sponsor Equity Bridge Loan | |||
Schedule of Asset Acquisition [Line Items] | |||
Long-term debt | 27 | ||
Mililani I Drop Down | Sponsor Equity Bridge Loan | Tax Equity Investors | |||
Schedule of Asset Acquisition [Line Items] | |||
Repayment of debt at asset acquisition | 14 | ||
Mililani I Drop Down | Tax Equity Bridge Loan | |||
Schedule of Asset Acquisition [Line Items] | |||
Long-term debt | $ 60 | $ 60 |
Investments Accounted for by _3
Investments Accounted for by the Equity Method and Variable Interest Entities - Consolidated Entities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | $ 3,671 | $ 3,537 |
Property, plant and equipment, net | 7,437 | 7,650 |
Intangible assets | 2,537 | 2,419 |
Assets | 12,596 | 12,718 |
Total liabilities | 8,335 | $ 9,501 |
Alta TE Holdco | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 54 | |
Property, plant and equipment, net | 312 | |
Intangible assets | 203 | |
Assets | 569 | |
Total liabilities | 38 | |
Noncontrolling interest | 35 | |
Net assets less noncontrolling interests | 496 | |
Buckthorn Renewables, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 4 | |
Property, plant and equipment, net | 196 | |
Intangible assets | 0 | |
Assets | 200 | |
Total liabilities | 11 | |
Noncontrolling interest | 33 | |
Net assets less noncontrolling interests | 156 | |
DGPV Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 95 | |
Property, plant and equipment, net | 577 | |
Intangible assets | 14 | |
Assets | 686 | |
Total liabilities | 76 | |
Noncontrolling interest | 14 | |
Net assets less noncontrolling interests | 596 | |
Langford TE Partnership LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 17 | |
Property, plant and equipment, net | 127 | |
Intangible assets | 2 | |
Assets | 146 | |
Total liabilities | 55 | |
Noncontrolling interest | 63 | |
Net assets less noncontrolling interests | 28 | |
Lighthouse Renewable Holdco LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 105 | |
Property, plant and equipment, net | 714 | |
Intangible assets | 0 | |
Assets | 819 | |
Total liabilities | 310 | |
Noncontrolling interest | 422 | |
Net assets less noncontrolling interests | 87 | |
Lighthouse Renewable Holdco 2 LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 48 | |
Property, plant and equipment, net | 364 | |
Intangible assets | 0 | |
Assets | 412 | |
Total liabilities | 132 | |
Noncontrolling interest | 239 | |
Net assets less noncontrolling interests | 41 | |
Oahu Solar Partnership | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 56 | |
Property, plant and equipment, net | 166 | |
Intangible assets | 0 | |
Assets | 222 | |
Total liabilities | 104 | |
Noncontrolling interest | 26 | |
Net assets less noncontrolling interests | 92 | |
Pinnacle Repowering Partnership LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 8 | |
Property, plant and equipment, net | 104 | |
Intangible assets | 17 | |
Assets | 129 | |
Total liabilities | 5 | |
Noncontrolling interest | 49 | |
Net assets less noncontrolling interests | 75 | |
Rattlesnake TE Holdco LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 14 | |
Property, plant and equipment, net | 187 | |
Intangible assets | 0 | |
Assets | 201 | |
Total liabilities | 17 | |
Noncontrolling interest | 93 | |
Net assets less noncontrolling interests | 91 | |
Rosie TargetCo LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 45 | |
Property, plant and equipment, net | 241 | |
Intangible assets | 0 | |
Assets | 286 | |
Total liabilities | 103 | |
Noncontrolling interest | 138 | |
Net assets less noncontrolling interests | 45 | |
Wildorado TE Holdco | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 22 | |
Property, plant and equipment, net | 213 | |
Intangible assets | 0 | |
Assets | 235 | |
Total liabilities | 19 | |
Noncontrolling interest | 114 | |
Net assets less noncontrolling interests | 102 | |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 17 | |
Property, plant and equipment, net | 159 | |
Intangible assets | 1 | |
Assets | 177 | |
Total liabilities | 73 | |
Noncontrolling interest | 74 | |
Net assets less noncontrolling interests | $ 30 |
Investments Accounted for by _4
Investments Accounted for by the Equity Method and Variable Interest Entities - Narrative (Details) | Aug. 01, 2022 |
Discontinued Operations, Disposed of by Sale | Kawailoa Solar Partnership LLC | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of assets ownership sold | 100% |
Investments Accounted for by _5
Investments Accounted for by the Equity Method and Variable Interest Entities - Unconsolidated Entities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Investment Balance | $ 377 | $ 381 |
Avenal | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50% | |
Investment Balance | $ 9 | |
Desert Sunlight | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 25% | |
Investment Balance | $ 246 | |
Elkhorn Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 67% | |
Investment Balance | $ 23 | |
GenConn | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50% | |
Investment Balance | $ 82 | |
San Juan Mesa | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 75% | |
Investment Balance | $ 17 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Balance Sheet Grouping (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 7,077 | $ 7,782 |
Carrying Amount | Affiliated Entity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 5 | 1 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 6,297 | 7,997 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 1,757 | 2,160 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 4,545 | 5,838 |
Fair Value | Affiliated Entity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 5 | $ 1 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recurring Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | $ 94 | $ 94 | $ 6 | ||||||
Derivative liability, fair value, gross liability | 370 | 370 | 242 | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||||||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of September 30, 2022 | 14 | $ 7 | $ 16 | $ 5 | $ (1) | $ 13 | |||
Interest rate contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 94 | 94 | 6 | ||||||
Derivative liability, fair value, gross liability | 63 | ||||||||
Commodity contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability, fair value, gross liability | 370 | 370 | 179 | ||||||
Fair Value, Recurring | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||||||
Beginning balance | (332) | $ (154) | (79) | $ (15) | (154) | $ (15) | |||
Settlements | 14 | 3 | 42 | 1 | |||||
Additions due to loss of NPNS exception | 0 | 0 | (22) | 0 | |||||
Total losses for the period included in earnings | (31) | (37) | (215) | (90) | |||||
Purchases | 0 | 0 | 0 | (9) | |||||
Ending balance | (349) | $ (332) | (113) | $ (79) | (349) | (113) | |||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of September 30, 2022 | (31) | (215) | |||||||
Fair Value, Recurring | Level 2 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 94 | 94 | 6 | ||||||
Derivative liability, fair value, gross liability | 0 | 0 | 63 | ||||||
Fair Value, Recurring | Level 2 | Interest rate contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 94 | 94 | 6 | ||||||
Derivative liability, fair value, gross liability | 0 | 0 | 63 | ||||||
Fair Value, Recurring | Level 2 | Other Financial Instruments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 0 | 0 | 0 | ||||||
Fair Value, Recurring | Level 2 | Commodity contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability, fair value, gross liability | 0 | 0 | 0 | ||||||
Fair Value, Recurring | Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 21 | 21 | 25 | ||||||
Derivative liability, fair value, gross liability | 370 | 370 | 179 | ||||||
Fair Value, Recurring | Level 3 | Interest rate contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 0 | 0 | 0 | ||||||
Derivative liability, fair value, gross liability | 0 | 0 | 0 | ||||||
Fair Value, Recurring | Level 3 | Other Financial Instruments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, fair value, gross asset | 21 | 21 | 25 | ||||||
Fair Value, Recurring | Level 3 | Commodity contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability, fair value, gross liability | $ 370 | $ 370 | $ 179 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Percent of derivative liabilities using level 3 fair value inputs | 100% |
Fair value assets, measured on recurring basis, valuation techniques, impact of credit reserve to fair value | $ 48 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - Fair Value, Recurring - Level 3 $ in Millions | Sep. 30, 2022 USD ($) $ / MWh |
Commodity Contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset | $ | $ 0 |
Derivative liability | $ | $ 370 |
Commodity Contracts | Low | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 23.33 |
Commodity Contracts | High | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 129.06 |
Commodity Contracts | Weighted Average | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 41.69 |
Other Financial Instruments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset | $ | $ 21 |
Derivative liability | $ | $ 0 |
Other Financial Instruments | Low | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 58,539 |
Other Financial Instruments | High | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 117,078 |
Other Financial Instruments | Weighted Average | Measurement Input, Commodity Forward Price | Valuation Technique, Discounted Cash Flow | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative asset/liability measurement input | 114,223 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Volumetric Underlying Derivative Transactions (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) MMBTU MWh | Dec. 31, 2021 USD ($) MMBTU MWh | |
Natural Gas | Long | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 0 | 2 |
Power | Short | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 18 | 17 |
Interest | Long | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, notional amount | $ | $ 1,217 | $ 1,326 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - FV of Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | $ 94 | $ 6 |
Derivative Liabilities | 370 | 242 |
Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 29 | 2 |
Derivative Liabilities | 0 | 8 |
Designated as Hedging Instrument | Interest rate contracts current | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 8 | 0 |
Derivative Liabilities | 0 | 5 |
Designated as Hedging Instrument | Interest rate contracts long-term | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 21 | 2 |
Derivative Liabilities | 0 | 3 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 65 | 4 |
Derivative Liabilities | 370 | 234 |
Not Designated as Hedging Instrument | Interest rate contracts current | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 15 | 0 |
Derivative Liabilities | 0 | 17 |
Not Designated as Hedging Instrument | Interest rate contracts long-term | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 50 | 4 |
Derivative Liabilities | 0 | 38 |
Not Designated as Hedging Instrument | Commodity contracts current | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 79 | 24 |
Not Designated as Hedging Instrument | Commodity contracts long-term | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 291 | $ 155 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Outstanding collateral received | $ 0 | $ 0 |
Outstanding collateral paid | $ 0 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary of Offsetting of Derivatives by Counterparty Master Agreement Level (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Gross Amounts of Recognized Assets/Liabilities | $ (370) | $ (242) |
Derivative assets, Gross Amounts of Recognized Assets/Liabilities | 94 | 6 |
Total derivative instruments, Gross Amounts Recognized Assets/Liabilities | (276) | (236) |
Total derivative instruments, Derivative Instruments | 0 | 0 |
Total derivative instruments, Net Amount | (276) | (236) |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Gross Amounts of Recognized Assets/Liabilities | (370) | (179) |
Derivative liability, Derivative Instruments | 0 | 0 |
Derivative liability, Net Amount | (370) | (179) |
Total derivative instruments, Gross Amounts Recognized Assets/Liabilities | (370) | (179) |
Total derivative instruments, Derivative Instruments | 0 | 0 |
Total derivative instruments, Net Amount | (370) | (179) |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Gross Amounts of Recognized Assets/Liabilities | (63) | |
Derivative liability, Derivative Instruments | 5 | |
Derivative liability, Net Amount | (58) | |
Derivative assets, Gross Amounts of Recognized Assets/Liabilities | 94 | 6 |
Derivative assets, Derivative Instruments | 0 | (5) |
Derivative asset, Net Amount | 94 | 1 |
Total derivative instruments, Gross Amounts Recognized Assets/Liabilities | 94 | (57) |
Total derivative instruments, Derivative Instruments | 0 | 0 |
Total derivative instruments, Net Amount | $ 94 | $ (57) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Mark-to-market of cash flow hedge accounting contracts | $ 14 | $ 4 | $ 37 | $ 17 | |
Accumulated other comprehensive income (loss) | 25 | 25 | $ (13) | ||
Gains expected to be realized from OCI during the next 12 months | 6 | 6 | |||
AOCI Including Portion Attributable to Noncontrolling Interest | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Accumulated OCI (OCL) beginning balance | 10 | (22) | (13) | (35) | |
Accumulated OCI (OCL) ending balance | 31 | (18) | 31 | (18) | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Reclassified from accumulated OCI (OCL) to income due to realization of previously deferred amounts | 2 | 3 | 7 | 9 | |
Mark-to-market of cash flow hedge accounting contracts | 12 | 1 | 30 | 8 | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | Capistrano Wind Portfolio | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Capistrano Wind Portfolio Acquisition | 7 | 0 | 7 | 0 | |
Noncontrolling Interest | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) | 6 | 0 | 6 | 0 | |
Accumulated Other Comprehensive (Loss) Income | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) | $ 25 | $ (18) | $ 25 | $ (18) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Impact on Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Contracts (Interest expense) | $ 14 | $ 7 | $ 16 | $ 5 | $ (1) | $ 13 | ||
Interest rate contracts | Interest Expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Contracts (Interest expense) | 33 | 6 | $ 110 | $ 42 | ||||
Commodity Contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Commodity Contracts (Mark-to-market economic hedging activities) | $ (17) | $ (36) | $ (191) | $ (86) |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |||
May 03, 2022 | Mar. 16, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 7,078 | $ 7,779 | ||
Less current maturities | (498) | (773) | ||
Less net debt issuance costs | (65) | (71) | ||
Add premiums | 4 | 4 | ||
Total long-term debt | 6,519 | 6,939 | ||
Intercompany Note with Clearway, Inc. | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5 | 1 | ||
Debt instrument, interest rate, stated percentage | 3.05% | |||
2028 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 850 | 850 | ||
Debt instrument, interest rate, stated percentage | 4.75% | |||
2031 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 925 | 925 | ||
Debt instrument, interest rate, stated percentage | 3.75% | |||
2032 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 350 | 350 | ||
Debt instrument, interest rate, stated percentage | 3.75% | |||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 245 | ||
Repayments of debt | $ 305 | |||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 112 | |||
Bridge Loan, Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 335 | ||
Repayments of debt | $ 335 | |||
Bridge Loan, Due 2022 | SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% | |||
Subtotal project-level debt: | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,948 | 5,073 | ||
Agua Caliente Solar LLC, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 665 | 684 | ||
Agua Caliente Solar LLC, due 2037 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.395% | |||
Agua Caliente Solar LLC, due 2037 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.633% | |||
Agua Caliente Solar LLC, due 2037 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 45 | |||
Alta Wind Asset Management LLC, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 12 | 13 | ||
Alta Wind Asset Management LLC, due 2031 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.625% | |||
Alta Wind Asset Management LLC, due 2031 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 727 | 756 | ||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.696% | |||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.015% | |||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 22 | |||
Alta Wind Realty Investments LLC, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 23 | 24 | ||
Debt instrument, interest rate, stated percentage | 7% | |||
Alta Wind Realty Investments LLC, due 2031 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Borrego, due 2024 and 2038 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 52 | 54 | ||
Borrego, due 2024 and 2038 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | 4 | |||
Buckthorn Solar, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 120 | 123 | ||
Buckthorn Solar, due 2025 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Buckthorn Solar, due 2025 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 22 | |||
Capistrano Wind Portfolio, due 2029 and 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 160 | 0 | ||
Debt instrument, basis spread on variable rate | 2% | |||
Capistrano Wind Portfolio, due 2029 and 2031 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 37 | |||
Carlsbad Energy Holdings LLC, due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 121 | 136 | ||
Carlsbad Energy Holdings LLC, due 2027 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Carlsbad Energy Holdings LLC, due 2027 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 68 | |||
Carlsbad Energy Holdings LLC, due 2038 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 407 | 407 | ||
Debt instrument, interest rate, stated percentage | 4.12% | |||
Carlsbad Energy Holdings LLC, due 2038 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Carlsbad Holdco, due 2038 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 203 | 205 | ||
Debt instrument, interest rate, stated percentage | 4.21% | |||
Carlsbad Holdco, due 2038 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 10 | |||
CVSR, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 627 | 652 | ||
CVSR, due 2037 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.339% | |||
CVSR, due 2037 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.775% | |||
CVSR, due 2037 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
CVSR Holdco Notes, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 160 | 169 | ||
Debt instrument, interest rate, stated percentage | 4.68% | |||
CVSR Holdco Notes, due 2037 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 13 | |||
DG-CS Master Borrower LLC, due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 413 | 441 | ||
Debt instrument, interest rate, stated percentage | 3.51% | |||
DG-CS Master Borrower LLC, due 2040 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 30 | |||
El Segundo Energy Center, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 130 | 193 | ||
El Segundo Energy Center, due 2023 | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.875% | |||
El Segundo Energy Center, due 2023 | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% | |||
El Segundo Energy Center, due 2023 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 128 | |||
Kawailoa Solar Portfolio LLC, due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 78 | ||
Kawailoa Solar Portfolio LLC, due 2026 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% | |||
Kawailoa Solar Portfolio LLC, due 2026 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Laredo Ridge, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 72 | ||
Laredo Ridge, due 2028 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.125% | |||
Laredo Ridge, due 2028 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Marsh Landing, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 38 | 84 | ||
Marsh Landing, due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.375% | |||
Marsh Landing, due 2023 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 55 | |||
Mililani I, due 2022 and 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 103 | 0 | ||
Mililani I, due 2022 and 2024 | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Mililani I, due 2022 and 2024 | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% | |||
Mililani I, due 2022 and 2024 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 3 | |||
NIMH Solar, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 171 | 176 | ||
NIMH Solar, due 2024 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2% | |||
NIMH Solar, due 2024 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 14 | |||
Oahu Solar Holdings LLC, due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 84 | 86 | ||
Oahu Solar Holdings LLC, due 2026 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% | |||
Oahu Solar Holdings LLC, due 2026 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 10 | |||
Rosie Class B LLC, due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 77 | 78 | ||
Rosie Class B LLC, due 2027 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Rosie Class B LLC, due 2027 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 17 | |||
Tapestry Wind LLC, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 85 | ||
Tapestry Wind LLC, due 2031 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% | |||
Tapestry Wind LLC, due 2031 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Utah Solar Holdings, due 2036 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 268 | 273 | ||
Debt instrument, interest rate, stated percentage | 3.59% | |||
Utah Solar Holdings, due 2036 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 15 | |||
Viento Funding II, LLC Due 2023 and 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 190 | $ 186 | 29 | |
Viento Funding II, LLC Due 2023 and 2029 | SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% | |||
Viento Funding II, LLC Due 2023 and 2029 | SOFR and Applicable Margin | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.475% | |||
Viento Funding II, LLC Due 2023 and 2029 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 26 | |||
Walnut Creek, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 34 | 74 | ||
Walnut Creek, due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Walnut Creek, due 2023 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 73 | |||
WCEP Holdings, LLC, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 27 | 30 | ||
WCEP Holdings, LLC, due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 3% | |||
WCEP Holdings, LLC, due 2023 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Other | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 140 | $ 151 | ||
Other | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 193 | |||
Laredo Ridge, Due 2028; Tapestry Wind, LLC, Due 2031; and Viento Funding II, LLC, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 186 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||
Aug. 22, 2022 | May 03, 2022 | Mar. 25, 2022 | Mar. 16, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2027 | Sep. 30, 2026 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||||||||
Proceeds from the revolving credit facility | $ 80,000,000 | $ 377,000,000 | |||||||||||
Payments for the revolving credit facility | 325,000,000 | 300,000,000 | |||||||||||
Long-term debt | $ 7,078,000,000 | $ 7,078,000,000 | 7,078,000,000 | $ 7,779,000,000 | |||||||||
Loss on debt extinguishment | 0 | $ 0 | 2,000,000 | $ 42,000,000 | |||||||||
Mililani I Drop Down | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unamortized debt issuance costs | $ 3,000,000 | ||||||||||||
Asset acquisition, long-term debt | 100,000,000 | ||||||||||||
Mililani I Drop Down | Tax Equity Investors | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payments to fund project reserve accounts | 15,000,000 | ||||||||||||
Mililani I Drop Down | Tax Equity Investors | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payments from escrow deposits | $ 18,000,000 | ||||||||||||
Mililani I Drop Down | CEG | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of debt at asset acquisition | 27,000,000 | ||||||||||||
Payments for associated fees | 2,000,000 | ||||||||||||
Capistrano Wind Portfolio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Asset acquisition, long-term debt | $ 162,000,000 | ||||||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, fair value of amount outstanding | 0 | 0 | 0 | ||||||||||
Proceeds from the revolving credit facility | 80,000,000 | ||||||||||||
Payments for the revolving credit facility | 325,000,000 | ||||||||||||
Repayments of debt | $ 305,000,000 | ||||||||||||
Long-term debt | 0 | 0 | $ 0 | 245,000,000 | |||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||||||||
Bridge Loan, Due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 335,000,000 | ||||||||||||
Long-term debt | 0 | 0 | $ 0 | 335,000,000 | |||||||||
Bridge Loan, Due 2022 | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||||||||
Viento Funding II, LLC Due 2023 and 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 190,000,000 | 186,000,000 | 186,000,000 | $ 186,000,000 | 29,000,000 | ||||||||
Viento Funding II, LLC Due 2023 and 2029 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Effective interest rate, percent | 1.50% | 1.375% | |||||||||||
Viento Funding II, LLC Due 2023 and 2029 | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.10% | ||||||||||||
Laredo Ridge, Due 2028; Tapestry Wind, LLC, Due 2031; and Viento Funding II, LLC, Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 186,000,000 | ||||||||||||
Loss on debt extinguishment | 2,000,000 | ||||||||||||
Capistrano Wind Portfolio, due 2029 and 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 160,000,000 | 160,000,000 | $ 160,000,000 | $ 0 | |||||||||
Debt instrument, basis spread on variable rate | 2% | ||||||||||||
Letter of Credit | Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding, amount | 112,000,000 | 112,000,000 | $ 112,000,000 | ||||||||||
Letter of Credit | Viento Funding II, LLC Due 2023 and 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding, amount | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||||
Debt instrument, face amount | $ 35,000,000 | ||||||||||||
Letter of Credit | Capistrano Wind Portfolio, due 2029 and 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding, amount | $ 37,000,000 | 37,000,000 | 37,000,000 | ||||||||||
Construction loans | Mililani I Drop Down | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Asset acquisition, long-term debt | 16,000,000 | ||||||||||||
Long-term debt, additions | $ 27,000,000 | ||||||||||||
Long-term debt, outstanding | 43,000,000 | ||||||||||||
Construction loans | Capistrano Wind Portfolio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unamortized debt issuance costs | 2,000,000 | ||||||||||||
Debt instrument, face amount | $ 164,000,000 | ||||||||||||
Construction loans | Capistrano Wind Portfolio, due 2029 and 2031 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 2% | ||||||||||||
Tax Equity Bridge Loan | Mililani I Drop Down | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Asset acquisition, long-term debt | 60,000,000 | $ 60,000,000 | |||||||||||
Sponsor Equity Bridge Loan | Mililani I Drop Down | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Asset acquisition, long-term debt | 27,000,000 | ||||||||||||
Sponsor Equity Bridge Loan | Mililani I Drop Down | Tax Equity Investors | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of debt at asset acquisition | $ 14,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting | |||||||||
Operating revenues | $ 340 | $ 351 | $ 922 | $ 968 | |||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 98 | 117 | 338 | 334 | |||||
Depreciation, amortization and accretion | 129 | 131 | 379 | 387 | |||||
General and administrative | 8 | 10 | 29 | 29 | |||||
Transaction and integration costs | 1 | 5 | 4 | ||||||
Development costs | 0 | 3 | 2 | 5 | |||||
Total operating costs and expenses | 753 | ||||||||
Gain on sale of business | 0 | 0 | 1,291 | 0 | |||||
Operating income (loss) | 105 | 89 | 1,460 | 209 | |||||
Equity in earnings of unconsolidated affiliates | 14 | 20 | 28 | 32 | |||||
Other income, net | 5 | 1 | 10 | 3 | |||||
Loss on debt extinguishment | 0 | 0 | (2) | (42) | |||||
Interest expense | (49) | (84) | (143) | (232) | |||||
Net Income (Loss) | 75 | $ 1,372 | $ (100) | 26 | $ 39 | $ (97) | 1,353 | (30) | |
Total Assets | 12,596 | 12,596 | $ 12,718 | ||||||
Operating Segments | |||||||||
Segment Reporting | |||||||||
Operating revenues | 340 | 351 | 922 | 968 | |||||
Operating Segments | Conventional Generation | |||||||||
Segment Reporting | |||||||||
Operating revenues | 102 | 118 | 313 | 329 | |||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 19 | 20 | 68 | 70 | |||||
Depreciation, amortization and accretion | 33 | 34 | 99 | 99 | |||||
General and administrative | 0 | 0 | 0 | 0 | |||||
Transaction and integration costs | 0 | 0 | 0 | ||||||
Development costs | 0 | 0 | 0 | ||||||
Total operating costs and expenses | 167 | ||||||||
Gain on sale of business | 0 | ||||||||
Operating income (loss) | 50 | 64 | 146 | 160 | |||||
Equity in earnings of unconsolidated affiliates | 1 | 2 | 3 | 6 | |||||
Other income, net | 1 | 0 | 1 | 0 | |||||
Loss on debt extinguishment | 0 | 0 | |||||||
Interest expense | (11) | (14) | (29) | (41) | |||||
Net Income (Loss) | 41 | 52 | 121 | 125 | |||||
Total Assets | 2,327 | 2,327 | |||||||
Operating Segments | Renewables | |||||||||
Segment Reporting | |||||||||
Operating revenues | 238 | 179 | 532 | 487 | |||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 79 | 60 | 220 | 166 | |||||
Depreciation, amortization and accretion | 96 | 90 | 280 | 266 | |||||
General and administrative | 0 | 0 | 0 | 1 | |||||
Transaction and integration costs | 0 | 0 | 0 | ||||||
Development costs | 0 | 0 | 0 | ||||||
Total operating costs and expenses | 500 | ||||||||
Gain on sale of business | 0 | ||||||||
Operating income (loss) | 63 | 29 | 32 | 54 | |||||
Equity in earnings of unconsolidated affiliates | 13 | 18 | 25 | 26 | |||||
Other income, net | 0 | 0 | 4 | 1 | |||||
Loss on debt extinguishment | (2) | (1) | |||||||
Interest expense | (14) | (41) | (33) | (103) | |||||
Net Income (Loss) | 62 | 6 | 26 | (23) | |||||
Total Assets | 9,634 | 9,634 | |||||||
Operating Segments | Thermal | |||||||||
Segment Reporting | |||||||||
Operating revenues | 54 | 77 | 152 | ||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 37 | 50 | 99 | ||||||
Depreciation, amortization and accretion | 7 | 0 | 22 | ||||||
General and administrative | 1 | 2 | 2 | ||||||
Transaction and integration costs | 0 | 0 | 0 | ||||||
Development costs | 1 | 2 | 3 | ||||||
Total operating costs and expenses | 54 | ||||||||
Gain on sale of business | 0 | ||||||||
Operating income (loss) | 8 | 23 | 26 | ||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||
Other income, net | 1 | 0 | 2 | ||||||
Loss on debt extinguishment | 0 | 0 | |||||||
Interest expense | (5) | (6) | (14) | ||||||
Net Income (Loss) | 4 | 17 | 14 | ||||||
Corporate | |||||||||
Segment Reporting | |||||||||
Operating revenues | 0 | 0 | 0 | 0 | |||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 0 | 0 | 0 | (1) | |||||
Depreciation, amortization and accretion | 0 | 0 | 0 | 0 | |||||
General and administrative | 8 | 9 | 27 | 26 | |||||
Transaction and integration costs | 1 | 5 | 4 | ||||||
Development costs | 2 | 0 | 2 | ||||||
Total operating costs and expenses | 32 | ||||||||
Gain on sale of business | 1,291 | ||||||||
Operating income (loss) | (8) | (12) | 1,259 | (31) | |||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |||||
Other income, net | 4 | 0 | 5 | 0 | |||||
Loss on debt extinguishment | 0 | (41) | |||||||
Interest expense | (24) | (24) | (75) | (74) | |||||
Net Income (Loss) | (28) | $ (36) | 1,189 | $ (146) | |||||
Total Assets | $ 635 | $ 635 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) subsidiary | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) subsidiary | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction | |||||
General and administrative | $ 8 | $ 10 | $ 29 | $ 29 | |
RENOM | |||||
Related Party Transaction | |||||
Expenses from transactions with related party | 19 | 13 | 49 | 40 | |
Due to affiliate | 9 | 9 | $ 9 | ||
CEG | |||||
Related Party Transaction | |||||
Expenses from transactions with related party | $ 3 | 3 | $ 11 | 10 | |
Number of wholly owned subsidiaries | subsidiary | 2 | 2 | |||
General and administrative | $ 1 | $ 1 | $ 4 | $ 3 | |
Affiliated Entity | |||||
Related Party Transaction | |||||
Due to affiliate | $ 2 | $ 2 | $ 2 |