Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 0 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: None. | ||
Entity Central Index Key | 0001637757 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Common Class A | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,613,853 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 42,738,750 | ||
Common Class C | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 82,283,460 | ||
Common Class D | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 42,336,750 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Revenues | |||
Total operating revenues | $ 1,190 | $ 1,286 | $ 1,199 |
Operating Costs and Expenses | |||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 435 | 451 | 366 |
Depreciation, amortization and accretion | 512 | 509 | 428 |
Impairment losses | 16 | 6 | 24 |
General and administrative | 38 | 38 | 33 |
Transaction and integration costs | 7 | 7 | 9 |
Development costs | 2 | 6 | 5 |
Total operating costs and expenses | 1,010 | 1,017 | 865 |
Gain on sale of business | 1,292 | 0 | 0 |
Operating Income | 1,472 | 269 | 334 |
Other Income (Expense) | |||
Equity in earnings of unconsolidated affiliates | 29 | 32 | 7 |
Impairment loss on investment | 0 | 0 | (8) |
Gain on sale of unconsolidated affiliate | 0 | 0 | 49 |
Other income, net | 17 | 3 | 4 |
Loss on debt extinguishment | (2) | (53) | (24) |
Interest expense | (232) | (312) | (414) |
Total other expense, net | (188) | (330) | (386) |
Income (Loss) Before Income Taxes | 1,284 | (61) | (52) |
Income tax expense | 2 | 2 | 0 |
Net Income (Loss) | 1,282 | (63) | (52) |
Less: Net loss attributable to noncontrolling interests and redeemable interests | (106) | (173) | (113) |
Net Income Attributable to Clearway Energy LLC | $ 1,388 | $ 110 | $ 61 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 1,282 | $ (63) | $ (52) |
Other Comprehensive Income | |||
Unrealized gain on derivatives and changes in accumulated OCI/OCL | 33 | 22 | 2 |
Other comprehensive income | 33 | 22 | 2 |
Comprehensive Income (Loss) | 1,315 | (41) | (50) |
Less: Comprehensive loss attributable to noncontrolling interests and redeemable interests | (100) | (171) | (115) |
Comprehensive Income Attributable to Clearway Energy LLC | $ 1,415 | $ 130 | $ 65 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 657 | $ 179 |
Restricted cash | 339 | 475 |
Accounts receivable — trade | 153 | 144 |
Inventory | 47 | 37 |
Current assets held-for-sale | 0 | 631 |
Derivative instruments | 26 | 0 |
Prepayments and other current assets | 54 | 65 |
Total current assets | 1,276 | 1,531 |
Property, plant and equipment, net | 7,421 | 7,650 |
Other Assets | ||
Equity investments in affiliates | 364 | 381 |
Intangible assets for power purchase agreements, net | 2,488 | 2,419 |
Other intangible assets, net | 77 | 80 |
Derivative instruments | 63 | 6 |
Right-of-use assets, net | 527 | 550 |
Other non-current assets | 96 | 101 |
Total other assets | 3,615 | 3,537 |
Total Assets | 12,312 | 12,718 |
Current Liabilities | ||
Current portion of long-term debt — external | 322 | 772 |
Current portion of long-term debt — affiliate | 2 | 1 |
Accounts payable — trade | 55 | 74 |
Accounts payable — affiliates | 24 | 110 |
Derivative instruments | 50 | 46 |
Accrued interest expense | 54 | 54 |
Current liabilities held-for-sale | 0 | 494 |
Accrued expenses and other current liabilities | 95 | 84 |
Total current liabilities | 602 | 1,635 |
Other Liabilities | ||
Long-term debt — external | 6,491 | 6,939 |
Deferred income taxes | 4 | 2 |
Derivative instruments | 303 | 196 |
Long-term lease liabilities | 548 | 561 |
Other non-current liabilities | 197 | 168 |
Total other liabilities | 7,543 | 7,866 |
Total Liabilities | 8,145 | 9,501 |
Redeemable noncontrolling interest in subsidiaries | 7 | 0 |
Commitments and Contingencies | ||
Members’ Equity | ||
Contributed capital | 1,308 | 1,495 |
Retained earnings | 1,240 | 43 |
Accumulated other comprehensive income (loss) | 21 | (13) |
Noncontrolling interest | 1,591 | 1,692 |
Total Members’ Equity | 4,160 | 3,217 |
Total Liabilities and Members’ Equity | $ 12,312 | $ 12,718 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 1,282 | $ (63) | $ (52) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in earnings of unconsolidated affiliates | (29) | (32) | (7) |
Distributions from unconsolidated affiliates | 37 | 38 | 61 |
Depreciation, amortization and accretion | 512 | 509 | 428 |
Amortization of financing costs and debt discounts | 14 | 14 | 15 |
Amortization of intangibles | 172 | 146 | 90 |
Loss on debt extinguishment | 2 | 53 | 24 |
Reduction in carrying amount of right-of-use assets | 14 | 11 | 4 |
Gain on sale of unconsolidated affiliate | 0 | 0 | (49) |
Gain on sale of business | (1,292) | 0 | 0 |
Impairment losses | 16 | 6 | 32 |
Change in deferred income taxes | 2 | 2 | 0 |
Changes in derivative instruments and amortization of accumulated OCI/OCL | 69 | 28 | 44 |
Loss on disposal of asset components | 0 | 0 | 3 |
Changes in prepaid and accrued liabilities for tolling agreements | 10 | 5 | (1) |
Changes in other working capital | (12) | (16) | (47) |
Net Cash Provided by Operating Activities | 797 | 701 | 545 |
Cash Flows from Investing Activities | |||
Acquisitions, net of cash acquired | 0 | (533) | 0 |
Acquisition of Drop Down Assets, net of cash acquired | (71) | (229) | (122) |
Acquisition of Capistrano Wind Portfolio, net of cash acquired | (223) | 0 | 0 |
Capital expenditures | (112) | (151) | (124) |
Asset purchase from affiliate | 0 | (21) | 0 |
Return of investment from unconsolidated affiliates | 13 | 47 | 79 |
Investments in unconsolidated affiliates | 0 | 0 | (11) |
Proceeds from sale of assets | 0 | 0 | 90 |
Proceeds from sale of business | 1,457 | 0 | 0 |
Consolidation of DGPV Holdco 3 LLC | 0 | 0 | 17 |
Other | 1 | 22 | 9 |
Net Cash Provided by (Used in) Investing Activities | 1,065 | (865) | (62) |
Cash Flows from Financing Activities | |||
Contributions from noncontrolling interests, net of distributions | 47 | 680 | 247 |
Contributions from CEG, net of distributions | 13 | 287 | 0 |
Buyout of Repowering Partnership II LLC noncontrolling interest | 0 | 0 | (70) |
Proceeds from the issuance of class C units | 0 | 0 | 62 |
Payments of distributions | (289) | (268) | (211) |
Distributions to CEG of escrowed amounts | (64) | 0 | 0 |
Tax-related distributions | (19) | 0 | 0 |
Proceeds from the revolving credit facility | 80 | 622 | 265 |
Payments for the revolving credit facility | (325) | (377) | (265) |
Proceeds from issuance of long-term debt — external | 244 | 1,728 | 1,084 |
Proceeds from issuance of long-term debt — affiliate | 4 | 2 | 3 |
Payments of debt issuance costs | (4) | (20) | (20) |
Payments for long-term debt — external | (1,198) | (2,292) | (1,482) |
Payments for long-term debt — affiliate | (3) | (2) | (45) |
Other | (6) | 7 | 0 |
Net Cash (Used in) Provided by Financing Activities | (1,520) | 367 | (432) |
Reclassification of Cash to Assets Held-for-Sale | 0 | (14) | 0 |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 342 | 189 | 51 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 654 | 465 | 414 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 996 | 654 | 465 |
Supplemental Disclosures: | |||
Interest paid, net of amount capitalized | (317) | (337) | (325) |
Non-cash investing and financing activities: | |||
Non-cash (distributions to), contributions from CEG | $ (4) | $ 31 | $ 7 |
CONSOLIDATED STATEMENTS OF MEMB
CONSOLIDATED STATEMENTS OF MEMBERS' EQUITY - USD ($) $ in Millions | Total | DGPV | Mesquite Star | Langford Drop Down | Rosamond Central Drop Down | Repowering Partnership II LLC | Agua Caliente Acquisition | Rattlesnake Drop Down | Mesquite Sky Drop Down | Black Rock Drop Down | Mililani I Drop Down | Waiawa Drop Down | Capistrano Wind Portfolio | Kawailoa Solar Partnership LLC | CEG | Tax Equity Investors | Clearway Energy, Inc. | Contributed Capital | Contributed Capital DGPV | Contributed Capital Mesquite Star | Contributed Capital Langford Drop Down | Contributed Capital Rosamond Central Drop Down | Contributed Capital Repowering Partnership II LLC | Contributed Capital Rattlesnake Drop Down | Contributed Capital Mesquite Sky Drop Down | Contributed Capital Black Rock Drop Down | Contributed Capital Mililani I Drop Down | Contributed Capital Waiawa 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 DGPV | Noncontrolling Interest Mesquite Star | Noncontrolling Interest Rosamond Central Drop Down | Noncontrolling Interest Repowering Partnership II LLC | Noncontrolling Interest Agua Caliente Acquisition | Noncontrolling Interest Mesquite Sky Drop Down | Noncontrolling Interest Black Rock Drop Down | Noncontrolling Interest Mililani I Drop Down | Noncontrolling Interest Waiawa Drop Down | Noncontrolling Interest Kawailoa Solar Partnership LLC | Noncontrolling Interest CEG | Noncontrolling Interest Tax Equity Investors |
Balance, beginning of period at Dec. 31, 2019 | $ 2,173 | $ 1,882 | $ 5 | $ (37) | $ 323 | |||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (52) | 61 | (113) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 2 | 4 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from CEG, net of distributions, non-cash | $ (7) | $ (8) | $ 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from CEG, net of distributions, cash | 6 | $ 361 | 6 | $ 361 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests, non-cash | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Payment for interests | $ (20) | $ 361 | $ (44) | $ 55 | $ (70) | $ (33) | $ 15 | $ (44) | $ 3 | $ (60) | $ 13 | $ 346 | $ 52 | $ (10) | ||||||||||||||||||||||||||||||||||||
Lighthouse Partnership Yield Protection Agreement | (15) | (15) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from the sales of units, Clearway Energy, Inc. | 62 | 62 | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions paid | (90) | $ (121) | (36) | $ (59) | $ (54) | $ (62) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period at Dec. 31, 2020 | 2,612 | 1,723 | (50) | (33) | 972 | |||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (66) | 110 | (176) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 22 | 20 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from CEG, net of distributions, non-cash | (31) | (2) | (29) | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from CEG, net of distributions, cash | 296 | $ 676 | 287 | 9 | $ 676 | |||||||||||||||||||||||||||||||||||||||||||||
Payment for interests | $ (117) | $ (120) | $ (137) | $ (117) | $ (42) | $ (122) | $ (78) | $ (15) | ||||||||||||||||||||||||||||||||||||||||||
Lighthouse Partnership Yield Protection Agreement | 15 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Agua Caliente Acquisition | $ 273 | $ 273 | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions paid | (113) | (155) | (96) | (155) | (17) | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period at Dec. 31, 2021 | 3,217 | 1,495 | 43 | (13) | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 1,271 | 1,388 | (117) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCL | 33 | 27 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Contributions From (Distributions To) Noncontrolling Interest Holders Non Cash | 51 | (4) | 0 | (18) | 51 | $ 14 | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from CEG, net of distributions, cash | 16 | 48 | (32) | |||||||||||||||||||||||||||||||||||||||||||||||
Payment for interests | $ (8) | $ 1 | $ (30) | $ (21) | $ 11 | $ (69) | $ (7) | $ 2 | $ (41) | $ (38) | $ 4 | $ (20) | $ 7 | $ (1) | $ (1) | $ 11 | $ 17 | $ (49) | ||||||||||||||||||||||||||||||||
Tax-related distributions | (19) | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions paid | $ (122) | $ (167) | $ (35) | $ (82) | $ (87) | $ (85) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period at Dec. 31, 2022 | $ 4,160 | $ 1,308 | $ 1,240 | $ 21 | $ 1,591 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 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 with a focus on investments in clean energy 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. The majority of the Company’s revenues are derived from 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. From time to time, CEG may also hold shares of Clearway Inc’s Class A and/or Class C common stock. As of December 31, 2022, Clearway, Inc. owned 57.88% of the economic interests of the Company, with CEG owning 42.12% of the economic interests of the Company. For further discussion, see Note 11, Members’ Equity. The diagram below represents a summarized structure of the Company as of December 31, 2022: |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements have been prepared in accordance with GAAP. The FASB ASC is the source of authoritative GAAP to be applied by nongovernmental entities. In addition, the rules and interpretative releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The consolidated financial statements include the Company’s accounts and operations and those of its subsidiaries in which it has a controlling financial interest. All significant intercompany transactions and balances have been eliminated in consolidation. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist through arrangements that do not involve controlling voting interests. As such, the Company applies the guidance of ASC 810, Consolidations, to determine when an entity that is insufficiently capitalized or not controlled through its voting interests, referred to as a variable interest entity, or VIE, should be consolidated. 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 $121 million and $146 million as of December 31, 2022 and 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: December 31, 2022 2021 (In millions) Cash and cash equivalents $ 657 $ 179 Restricted cash 339 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 996 $ 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 December 31, 2022, these restricted funds were comprised of $109 million designated to fund operating expenses, $55 million designated for current debt service payments and $105 million restricted for reserves including debt service, performance obligations and other reserves as well as capital expenditures. The remaining $70 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 membership 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 December 31, 2022, $26 million of the $27 million previously contributed to the Oahu Solar projects has been utilized to offset invoiced amounts under the projects’ PPAs. Accounts Receivable — Trade and Allowance for Credit Losses Accounts receivable — trade are reported on the consolidated balance sheet at the invoiced amount adjusted for any write-offs and the allowance for credit losses. The allowance for credit losses is reviewed periodically based on amounts past due and their significance. The allowance for credit losses was immaterial as of December 31, 2022 and 2021. Inventory Inventory consists of spare parts and is valued at weighted average cost, unless evidence indicates that the weighted average cost will not be recovered with a normal profit in the ordinary course of business. Inventory is removed when used for repairs, maintenance or capital projects. Property, Plant and Equipment Property, plant and equipment are stated at cost, however impairment adjustments are recorded whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Significant additions or improvements extending asset lives are capitalized as incurred, while repairs and maintenance that do not improve or extend the life of the respective asset are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives. Certain assets and their related accumulated depreciation amounts are adjusted for asset retirements and disposals with the resulting gain or loss included in cost of operations in the consolidated statements of income. For further discussion of the Company’s property, plant and equipment refer to Note 4, Property, Plant and Equipment . Construction in-progress represents cumulative construction costs, including the costs incurred for the purchase of major equipment and engineering costs and capitalized interest. Once the project achieves commercial operation, the Company reclassifies the amounts recorded in construction in progress to facilities and equipment. Development costs include project development costs, which are expensed in the preliminary stages of a project and capitalized when the project is deemed to be commercially viable. Commercial viability is determined by one or a series of actions including, among others, Board of Director approval pursuant to a formal project plan that subjects the Company to significant future obligations that can only be discharged by the use of a Company asset. When a project is available for operations, capitalized interest and capitalized project development costs are reclassified to property, plant and equipment and depreciated on a straight-line basis over the estimated useful life of the project’s related assets. Capitalized costs are charged to expense if a project is abandoned or management otherwise determines the costs to be unrecoverable. Asset Impairments Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. Such reviews are performed in accordance with ASC 360, Property, Plant and Equipment . An impairment loss is indicated if the total future estimated undiscounted cash flows expected from an asset are less than its carrying amount. An impairment charge is measured as the excess of an asset’s carrying amount over its fair value with the difference recorded in operating costs and expenses in the consolidated statements of income. Fair values are determined by a variety of valuation methods, including appraisals, sales prices of similar assets and present value techniques. For further discussion of the Company’s long-lived asset impairments, refer to Note 9, Asset Impairments . Investments accounted for by the equity method are reviewed for impairment in accordance with ASC 323, Investments-Equity Method and Joint Ventures , which requires that a loss in value of an investment that is an other-than-temporary decline should be recognized. The Company identifies and measures losses in the value of equity method investments based upon a comparison of fair value to carrying value. Debt Issuance Costs Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs related to the long-term debt are presented as a direct deduction from the carrying amount of the related debt. Debt issuance costs related to the senior secured revolving credit facility line of credit are recorded as a non-current asset on the consolidated balance sheet and are amortized over the term of the credit facility. Intangible Assets Intangible assets represent contractual rights held by the Company. The Company recognizes specifically identifiable intangible assets including power purchase agreements, leasehold rights, emission allowances, RECs and development rights when specific rights and contracts are acquired. These intangible assets are amortized primarily on a straight-line basis. For further discussion of the Company’s intangible assets, refer to Note 8, Intangible Assets. Income Taxes The Company is classified as a partnership for federal and state income tax purposes. Therefore, federal and most state income taxes are assessed at the partner level. The franchise tax imposed by the state of Texas, however, is being assessed at the level of certain project subsidiaries of the Company, and therefore reflected as an income tax expense of the Company. For the year ended December 31, 2022, the Company recorded a deferred tax expense of $2 million and associated deferred tax liability of $4 million with respect to future years. At December 31, 2021, the Company recorded a deferred tax expense and associated deferred tax liability of $2 million with respect to future years. 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. 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. 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. 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. The contingent lease revenue recognized in the years ended December 31, 2022, 2021 and 2020 was $850 million, $741 million and $589 million, respectively. See Note 15, Leases, for additional information related to the Company’s PPAs accounted for as leases. 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. Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2022, along with the reportable segment for each category: Year ended December 31, 2022 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 6 $ 956 $ 48 $ 1,010 Capacity revenue (a) 435 2 18 455 Other revenues — 71 11 82 Contract amortization (24) (151) — (175) Mark-to-market for economic hedges — (182) — (182) Total operating revenues 417 696 77 1,190 Less: Contract amortization 24 151 — 175 Less: Mark-to-market for economic hedges — 182 — 182 Less: Lease revenue (441) (809) (1) (1,251) Total revenue from contracts with customers $ — $ 220 $ 76 $ 296 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2021, along with the reportable segment for each category: Year ended December 31, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 9 $ 784 $ 122 $ 915 Capacity revenue (a) 455 2 53 510 Other revenues — 60 32 92 Contract amortization (23) (118) (3) (144) Mark-to-market for economic hedges — (87) — (87) Total operating revenues 441 641 204 1,286 Less: Contract amortization 23 118 3 144 Less: Mark-to-market for economic hedges — 87 — 87 Less: Lease revenue (464) (716) (2) (1,182) Total revenue from contracts with customers $ — $ 130 $ 205 $ 335 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2020, along with the reportable segment for each category: Year ended December 31, 2020 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 10 $ 609 $ 101 $ 720 Capacity revenue (a) 451 — 63 514 Other revenues — 21 32 53 Contract amortization (24) (61) (3) (88) Total operating revenues 437 569 193 1,199 Less: Contract amortization 24 61 3 88 Less: Lease revenue (461) (554) (2) (1,017) Total revenue from contracts with customers $ — $ 76 $ 194 $ 270 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. 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 net amount of contract assets and liabilities included on the Company’s consolidated balance sheets as of December 31, 2022 and December 31, 2021: (In millions) December 31, 2022 December 31, 2021 Accounts receivable, net - Contracts with customers $ 37 $ 44 Accounts receivable, net - Leases 116 100 Total accounts receivable, net $ 153 $ 144 Derivative Financial Instruments The Company accounts for derivative financial instruments under ASC 815, Derivatives and Hedging , or ASC 815, which requires the Company to record all derivatives on the balance sheet at fair value unless they qualify for a NPNS exception. Changes in the fair value of non-hedge derivatives are immediately recognized in earnings. Changes in the fair value of derivatives accounted for as hedges, if elected for hedge accounting, are either: • Recognized in earnings as an offset to the changes in the fair value of the related hedged assets, liabilities and firm commitments; or • Deferred and recorded as a component of accumulated OCI until the hedged transactions occur and are recognized in earnings. The Company’s primary derivative instruments are interest rate instruments used to mitigate variability in earnings due to fluctuations in interest rates and power sale contracts used to mitigate variability in earnings due to fluctuations in market prices. Certain derivative contracts contain provisions providing the counterparties a lien on specific assets as collateral. On an ongoing basis, the Company qualitatively assesses the effectiveness of its derivatives that are designated as hedges for accounting purposes in order to determine that each derivative continues to be highly effective in offsetting changes in cash flows of hedged items. If necessary, the Company will perform an analysis to measure the statistical correlation between the derivative and the associated hedged item to determine the effectiveness of such a contract designated as a hedge. The Company will discontinue hedge accounting if it is determined that the hedge is no longer effective. In this case, the gain or loss previously deferred in accumulated OCI would be frozen until the underlying hedged item is delivered unless the transaction being hedged is no longer probable of occurring in which case the amount in accumulated OCI would be immediately reclassified into earnings. If the derivative instrument is terminated, the effective portion of this derivative deferred in accumulated OCI will be frozen until the underlying hedged item is delivered. Revenues and expenses on contracts that qualify for the NPNS exception are recognized when the underlying physical transaction is delivered. While these contracts are considered derivative financial instruments under ASC 815, they are not recorded at fair value, but on an accrual basis of accounting. If it is determined that a transaction designated as NPNS no longer meets the scope exception, the fair value of the related contract is recorded on the balance sheet and immediately recognized through earnings. Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable — trade and derivative instruments, which are concentrated within entities engaged in the energy and financial industries. These industry concentrations may impact the overall exposure to credit risk, either positively or negatively, in that the customers may be similarly affected by changes in economic, industry or other conditions. In addition, many of the Company’s projects have only one customer. See Item 1A, Risk Factors, Risks Related to the Company’s Business, for a discussion on the Company’s dependence on major customers . See Note 6, Fair Value of Financial Instruments, for a further discussion of derivative concentrations and Note 12, Segment Reporting, for concentration of counterparties. Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, restricted cash, accounts receivable — trade, accounts payable — trade, account payable — affiliates and accrued expenses and other current liabilities approximate fair value because of the short-term maturity of these instruments. See Note 6, Fair Value of Financial Instruments, for a further discussion of fair value of financial instruments. Asset Retirement Obligations Asset retirement obligations, or AROs, are accounted for in accordance with ASC 410-20, Asset Retirement Obligations, or ASC 410-20. Retirement obligations associated with long-lived assets included within the scope of ASC 410-20 are those for which a legal obligation exists under enacted laws, statutes, and written or oral contracts, including obligations arising under the doctrine of promissory estoppel, and for which the timing and/or method of settlement may be conditional on a future event. ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, other than when an ARO is assumed in an acquisition of the related long-lived asset, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its future value, while the capitalized cost is depreciated over the useful life of the related asset. The Company’s AROs are primarily related to the future dismantlement of equipment on leased property and environmental obligations related to site closures and fuel storage facilities. The Company records AROs as part of other non-current liabilities on its consolidated balance sheet. The following table represents the balance of ARO obligations, along with the related activity for the year ended December 31, 2022: (In millions) Balance as of December 31, 2021 $ 146 Liabilities incurred 6 Liabilities settled (5) Accretion expense 10 Balance as of December 31, 2022 $ 157 Guarantees The Company enters into various contracts that include indemnification and guarantee provisions as a routine part of its business activities. Examples of these contracts include operation and maintenance agreements, service agreements, commercial sales arrangements and other types of contractual agreements with vendors and other third parties as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters as well as breaches of representations, warranties and covenants set forth in these agreements. Because many of the guarantees and indemnities the Company issues to third parties and affiliates do not limit the amount or duration of its obligations to perform under them, there exists a risk that the Company may have obligations in excess of the amounts agreed upon in the contracts mentioned above. For those guarantees and indemnities that do not limit the liability exposure, the Company may not be able to estimate what the liability would be, until a claim is made for payment or performance, due to the contingent nature of these contracts. Investments Accounted for by the Equity Method The Company has investments in various energy projects accounted for by the equity method, several of which are VIEs, where the Company is not a primary beneficiary, as described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities. The equity method of accounting is applied to these investments in affiliates because the ownership structure prevents the Company from exercising a controlling influence over the operating and financial policies of the projects. Under this method, equity in pre-tax income or losses of the investments is reflected as equity in earnings of unconsolidated affiliates. Distributions from equity method investments that represent earnings on the Company’s investment are included within cash flows from operating activities and distributions from equity method investments that represent a return of the Company’s investment are included within cash flows from investing activities. Sale-Leaseback Arrangements The Company is party to sale-leaseback arrangements that provide for the sale of certain assets to a third-party and simultaneous leaseback to the Company. In accordance with ASC 840-40, Sale-Leaseback Transactions , if the seller-lessee retains, through the leaseback, substantially all of the benefits and risks incident to the ownership of the property sold, the sale-leaseback transaction is accounted for as a financing arrangement. An example of this type of continuing involvement would include an option to repurchase the assets or the buyer-lessor having the option to sell the assets back to the Company. This provision is included in most of the Company’s sale-leaseback arrangements. As such, the Company accounts for these arrangements as financings. Under the financing method, the Company does not recognize as income any of the sale proceeds received from the lessor that contractually constitutes payment to acquire the assets subject to these arrangements. Instead, the sale proceeds received are accounted for as financing obligations and leaseback payments made by the Company are allocated between interest expense and a reduction to the financing obligation. Interest on the financing obligation is calculated using the Company’s incremental borrowing rate at the inception of the arrangement on the outstanding financing obligation. Judgment is required to determine the appropriate borrowing rate for the arrangement and in determining any gain or loss on the transaction that would be recorded either at the end of or over the lease term. Asset Acquisitions The Company accounts for its acquisitions in accordance with ASC 805, Business Combinations, or ASC 805. For third-party acquisitions, ASC 805 requires an acquirer to recognize and measure in its financial statements the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at fair value at the acquisition date. No goodwill is recognized and excess purchase price or negative goodwill are allocated to the acquired assets on a relative fair value basis. For acquisitions that relate to entities under common control, the difference between the cash paid and historical value of the entities’ equity is recorded as a distribution/contribution from/to CEG with the offset to CEG’s contributed capital balance. Tax Equity Arrangements Certain portions of the Company’s redeemable noncontrolling interest in subsidiaries and noncontrolling interest represent third-party interests in the net assets under certain tax equity arrangements, which are consolidated by the Company, that have been entered into to finance the cost of solar and wind facilities eligible for certain tax credits. The Company has determined that the provisions in the contractual agreements of these structures represent substantive profit sharing arrangements. Further, the Company has determined that the appropriate methodology for calculating the redeemable noncontrolling interest and noncontrolling interest that reflects the substantive profit sharing arrangements is a balance sheet approach utilizing the hypothetical liquidation at book value, or HLBV, method. Under the HLBV method, the amounts reported as redeemable noncontrolling interest and noncontrolling interest represent the amounts the investors to the tax equity arrangements would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements, assuming the net assets of the funding structures were liquidated at their recorded amounts determined in accordance with GAAP. The investors’ interests in the results of operations of the funding structures are determined as the difference in redeemable noncontrolling interest and noncontrolling interest at the start and end of each reporting period, after taking into account any capital transactions between the structures and the funds’ investors. The calculations utilized to apply the HLBV method include estimated calculations of taxable income or losses for each reporting period. In addition, in certain circumstances, the Company and its partners in the tax equity arrangements agree that certain tax benefits are to be utilized outside of the tax equity arrangements, which may result in differences in the amount an investor would hypothetically receive at the initial balance sheet date calculated strictly in accordance with related contractual agreements. These differences are recognized in the consolidated statement of income using a systematic and rational method over the period during which the investor is expected to achieve its target return. Redeemable Noncontrolling Interest 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 year ended December 31, 2022: (In millions) Balance at December 31, 2021 $ — Cash distributions to redeemable noncontrolling interests (4) Comprehensive income attributable to redeemable noncontrolling interests 11 Balance at December 31, 2022 $ 7 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. In recording transactions and balances resulting from business operations, the Company uses estimates based on the best information available. Estimates are used for such items as plant depreciable lives, uncollectible accounts, AROs, acquisition accounting, fair value of financial instruments and legal costs incurred in connection with recorded loss contingencies, among others. In addition, estimates are used to test long-lived assets for impairment and to determine the fair value of impaired assets. As better information becomes available or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. Reclassification Certain prior year amounts have been reclassified for comparative purposes. Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-4, 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. In December 2022, the FASB issued ASU No. 2022-6, Deferral of the Sunset Date of Reference Rate Reform , to extend the end of the transition period to December 31, 2024. As of December 31, 2022, the Company intends to apply the amendments to all its eligible contract modifications, where applicable, no later than June 30, 2023, the LIBOR cessation date. Additionally, the Company has not elected any optional expedients provided in the standard. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions As further described in Note 2, Summary of Significant Accounting Policies , the Company records the assets acquired and liabilities assumed at acquisition-date fair value, except in the case of acquisitions under common control by CEG, for which assets acquired and liabilities assumed are recorded at historical cost on the acquisition date, which in certain circumstances represent the acquired cost. The fair value of property, plant and equipment for third-party acquisitions was determined primarily based on an income method using discounted cash flows and validated using a cost approach based on the replacement cost of the assets less economic depreciation. This methodology was utilized as the forecasted cash flows incorporate specific attributes of each asset including age, useful life, equipment condition and technology. The fair value of intangible assets was determined utilizing a variation of the income approach determined by discounting incremental cash flows associated with the contracts to present value. Primary assumptions utilized included estimates of generation, contractual prices, operating expenses and the weighted average cost of capital reflective of a market participant. These assumptions are considered to be a Level 3 measurement as defined in ASC 820, as they utilize inputs that are not observable in the market. Daggett 3 Drop Down — On February 17, 2023, Daggett Solar Investment LLC, a subsidiary of the Company, acquired the Class A membership interests in Daggett Renewable Holdco LLC from Clearway Renew LLC, a subsidiary of CEG, for cash consideration of $21 million. Simultaneously, Daggett Renewable Holdco LLC acquired Daggett TargetCo LLC, the indirect owner of the Daggett 3 solar project, a 300 MW solar project with matching storage capacity that is currently under construction and located in San Bernardino, California. Daggett Renewable Holdco LLC is a partnership between the Company and a third-party investor. The third-party investor also paid cash consideration of $129 million, which was utilized to acquire the Class B membership interests in Daggett Renewable Holdco LLC. Daggett TargetCo LLC consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Daggett TE Holdco LLC, which holds the Daggett 3 solar project. Daggett 3 has PPAs with investment-grade counterparties that have a 15-year weighted average contract duration that will commence when the project reaches commercial operations, which is expected to occur in the first half of 2023. The acquisition was funded with existing sources of liquidity. 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 located in Honolulu, Hawaii, from Clearway Renew LLC 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, as further described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities . Waiawa has a 20-year PPA with an investment-grade utility that commenced in January 2023. The Waiawa solar project is 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 Waiawa on a prospective basis in its financial statements. The assets and liabilities transferred to the Company relate to interests under common control and were recorded at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues . The sum of the cash paid of $20 million and the historical cost of the Company’s net liabilities assumed of $1 million was recorded as an adjustment to CEG’s contributed capital balance. In addition, the Company reflected $16 million of the Company’s purchase price, which was contributed back to the Company by CEG to pay down the acquired long-term debt, in the line item 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 October 3, 2022: (In millions) Waiawa Other current and non-current assets $ 7 Property, plant and equipment 118 Total assets acquired 125 Long-term debt (a) 102 Other current and non-current liabilities 24 Total liabilities assumed 126 Net liabilities assumed $ (1) (a) Includes a $22 million construction loan, $26 million sponsor equity bridge loan and $55 million tax equity bridge loan, offset by $1 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date, along with $2 million in associated fees, utilizing $12 million from the cash equity investor, as well as $16 million of the Company's purchase price, which was contributed back to the Company by CEG. Also at acquisition date, the tax equity investor contributed $17 million into escrow, which is included in restricted cash on the Company's consolidated balance sheet at December 31, 2022. The tax equity investor will contribute an additional $41 million when the project reaches substantial completion, which will be utilized, along with the $17 million in escrow, to repay the $55 million tax equity bridge loan. The project is expected to reach substantial completion in the first half of 2023. 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 9 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 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 $4 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 5, Investments Accounted for by the Equity Method and Variable Interest Entities . Mililani I has a 20-year PPA with an investment-grade utility that commenced in July 2022. The Mililani I 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 Mililani I on a prospective basis in its financial statements. The assets and liabilities transferred to the Company relate to interests under common control and were recorded at historical cost in accordance with ASC 805-50, 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 to the Company by CEG to pay down the acquired long-term debt, in the line item 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, along with $2 million in associated fees, 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. 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. On December 7, 2022, when the project reached substantial completion, the tax equity investor contributed an additional $42 million and CEG contributed an additional $11 million, which was utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan, to fund $7 million in construction completion reserves and to pay $4 million in associated fees. Black Rock Drop Down — On December 29, 2021, the Company, through its indirect subsidiary Lighthouse Renewable Holding Sub LLC, acquired the Class B membership interests in Black Rock Wind Holding LLC from Clearway Renew LLC for $60 million in cash consideration, $37 million of which was paid on December 29, 2021 with the remaining $23 million paid in February 2022 after all remaining turbines were operational. Lighthouse Renewable Holding Sub LLC is a wholly-owned subsidiary of Lighthouse Renewable Holdco LLC, which is a partnership between the Company and a third-party investor. The third-party investor also contributed cash consideration utilized to acquire their portion of the Class B membership interests. The Class A membership interests in Black Rock Wind Holding LLC were acquired by another third-party investor in 2020, which sold their interest back to the Company on March 31, 2022. Black Rock Wind Holding LLC, through its wholly-owned subsidiary, Black Rock Class B Holdco LLC, is the primary beneficiary and consolidates its interests in a tax equity fund, Black Rock TE Holdco LLC, that holds the Black Rock wind project, a 115 MW utility scale wind project located in Mineral County and Grant County, West Virginia, which achieved commercial operations in December 2021, as further described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities . A majority of the project’s output is backed by contracts with investment-grade counterparties with a 15-year weighted average contract life. The Black Rock 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 not a business combination, therefore the Company consolidated the financial information for Black Rock on a prospective basis. The assets and liabilities transferred to the Company relate to interests under common control and were recorded at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues . The difference between the cash paid of $60 million and the historical cost of the Company’s acquired interests of $19 million was recorded as an adjustment to CEG’s contributed capital balance. In addition, the Company reflected additional contributions paid by CEG and the portion of the Company’s purchase price utilized to repay long-term debt, totaling $133 million, as contributions from CEG in the statement of members’ equity, and as an impact of the Black Rock Drop Down in noncontrolling interest. The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 29, 2021: (In millions) Black Rock Current assets (a) $ 36 Property, plant and equipment 178 Right-of-use-assets 7 Other non-current assets 2 Total assets acquired 223 Long-term debt (b) 186 Long-term lease liabilities 7 Other current and non-current liabilities 11 Total liabilities assumed (c) 204 Net assets acquired $ 19 (a) Includes $35 million reserved for project completion costs included in restricted cash on the Company’s balance sheet at acquisition date, which is included within the $133 million contributed by CEG described above. (b) Repaid at acquisition date utilizing $56 million contributed by the tax equity investor, $36 million from the cash equity investor and $61 million contributed by CEG, all recorded as contributions in noncontrolling interest, as well as $37 million of the Company’s acquisition price. Of the $190 million contributed, $186 million was utilized to pay down the acquired debt and $4 million was utilized to pay associated fees. The $61 million contributed by CEG and the Company’s initial acquisition price of $37 million are also included within the $133 million contributed by CEG described above. (c) Total liabilities assumed excludes amounts due to CEG as of the acquisition date for the remaining turbines that became operational in January 2022. The liabilities totaled $83 million, of which $59 million was received from the tax equity and cash equity investors and was held in escrow accounts as of the acquisition date. Mesquite Sky Drop Down — On December 17, 2021, the Company, through its indirect subsidiary Lighthouse Renewable Holdco 2 LLC, acquired the Class B membership interests of Mesquite Sky Holding LLC from Clearway Renew LLC for $61 million in cash consideration. Lighthouse Renewable Holdco 2 LLC is a partnership between the Company and a third-party investor. The third-party investor also contributed cash consideration utilized to acquire their portion of the Class B membership interests. The Class A membership interests of Mesquite Sky Holding LLC were acquired by another third-party investor in 2020, which sold their interest back to the Company on March 18, 2022. Mesquite Sky Holding LLC, through its wholly-owned subsidiary, Mesquite Sky Class B Holdco LLC, is the primary beneficiary and consolidates its interests in a tax equity fund, Mesquite Sky TE Holdco LLC, that holds the Mesquite Sky wind project, a 340 MW utility scale wind project located in Callahan County, Texas, which achieved commercial operations in December 2021, as further described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities . A majority of the project’s output is backed by contracts with investment-grade counterparties with a 12-year weighted average contract life. The Mesquite Sky 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 not a business combination, therefore the Company consolidated the financial information for Mesquite Sky on a prospective basis. The assets and liabilities transferred to the Company relate to interests under common control and were recorded at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues . The sum of the cash paid of $61 million and the historical cost of the Company’s net liabilities assumed of $7 million was recorded as an adjustment to CEG’s contributed capital balance. The difference between cash paid, interests acquired, and the balance in equity is capital reserved for project completion. In addition, the Company reflected additional contributions paid by CEG and the portion of the Company’s purchase price utilized to repay long-term debt, totaling $52 million, as contributions from CEG in the statement of members’ equity, and as an impact of the Mesquite Sky drop down in noncontrolling interest. The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 17, 2021: (In millions) Mesquite Sky Current assets (a) $ 46 Property, plant and equipment 377 Right-of use assets 45 Other non-current assets 7 Total assets acquired 475 Long-term debt (b) 355 Long-term lease liabilities 45 Derivative liabilities 43 Other current and non-current liabilities 39 Total liabilities assumed (c) 482 Net liabilities assumed $ (7) (a) Includes $44 million reserved for project completion costs included in restricted cash on the Company’s balance sheet at acquisition date, which is included within the $52 million contributed by CEG described above. (b) Repaid at acquisition date utilizing $241 million contributed by the tax equity investor and $107 million contributed by the cash equity investor, both recorded as contributions in noncontrolling interest, as well as the Company’s $61 million acquisition price. Of the $409 million contributed, $355 million was utilized to pay down the acquired debt and $1 million was utilized to pay associated fees. The remaining $53 million was distributed to CEG for the acquisition. The net of the Company’s $61 million acquisition price and the distribution to CEG of $53 million are included within the $52 million contributed by CEG described above. (c) Total liabilities assumed excludes amounts due to CEG as of the acquisition date of $6 million, of which $5 million was received from the tax equity and cash equity investors and was held in escrow accounts as of the acquisition date. Utah Solar Portfolio Acquisition — On December 1, 2021, the Company acquired the remaining 50% equity interest in the Utah Solar Portfolio from Dominion Solar Projects III, Inc., for approximately $335 million before working capital and purchase price adjustments in the net amount of $5 million, representing total net consideration of $330 million. The Utah Solar Portfolio consists of seven utility-scale solar farms located in Utah, representing 530 MW of capacity. The assets within the portfolio sell power subject to 20-year PPAs with PacifiCorp that have approximately 15 years remaining under the agreements. Following the close of the transaction, the Company owns 100% of the membership interests in the Utah Solar Portfolio and consolidates the Utah Solar Portfolio. The Utah Solar Portfolio operations are included in the Company’s Renewables segment. The acquisition was determined to be an asset acquisition and the cash consideration of $330 million, net of restricted cash acquired of $8 million, represented a net cash outflow of $322 million, which was allocated to the fair value of the assets acquired and liabilities assumed on the acquisition date. The acquisition was funded with the borrowings under the Bridge Loan Agreement, as described in Note 10, Long-term Debt. The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 1, 2021: (In millions) Utah Solar Portfolio Current assets $ 20 Property, plant and equipment 258 Intangible assets for power purchase agreement 302 Other intangible assets 4 Right-of use assets 163 Total assets acquired 747 Long-term lease liabilities 163 Other current and non-current liabilities 24 Total liabilities assumed 187 Equity method investment removed (230) Net assets acquired $ 330 Mt. Storm Wind Acquisition — On April 23, 2021, the Company acquired 100% of the equity interests in NedPower Mount Storm LLC, or Mt. Storm, from Castleton Commodities International for approximately $96 million before working capital and purchase price adjustments in the net amount of $4 million, representing a total net consideration of $100 million. Mt. Storm is a 264 MW wind project located in Grant County, West Virginia. Mt. Storm has a 10-year energy hedge with an investment-grade counterparty. The acquisition was determined to be an asset acquisition and the purchase price was allocated to the fair value of the assets acquired and liabilities assumed on the acquisition date as follows: (In millions) Mt. Storm Current assets $ 3 Property, plant and equipment 108 Other non-current assets 2 Total assets acquired 113 Derivative instruments 9 Other current and non-current liabilities 4 Total liabilities assumed 13 Net assets acquired $ 100 Agua Caliente Acquisition — On February 3, 2021, the Company acquired an additional 35% equity interest in the Agua Caliente solar project from NRG for $202 million. Agua Caliente is a 290 MW solar project located in Dateland, Arizona in which Clearway previously owned a 16% equity interest. The project has a 25-year PPA with PG&E, with approximately 17 years remaining under the agreement. Following the close of the transaction, the Company owns a 51% equity interest in Agua Caliente. The Agua Caliente operations are included in the Company’s Renewables segment. The acquisition was determined to be an asset acquisition and the cash consideration of $202 million, net of restricted cash acquired of $91 million, represented a net cash outflow of $111 million, which was allocated to the fair value of the assets acquired and liabilities assumed on the acquisition date. A third-party investor holds the remaining 49% equity interest in Agua Caliente, which is reflected in noncontrolling interest at fair value at the acquisition date. The following is a summary of assets and liabilities obtained in connection with the acquisition as of February 3, 2021: (In millions) Agua Caliente Restricted cash $ 91 Property, plant and equipment 154 Intangible asset for power purchase agreement 1,022 Other current assets 9 Total assets acquired 1,276 Long-term debt 716 Other current and non-current liabilities 5 Total liabilities assumed 721 Noncontrolling interest 273 Equity method investment removed (80) Net assets acquired less noncontrolling interest $ 202 Rattlesnake Drop Down — On January 12, 2021, the Company acquired CEG’s equity interest and a third-party investor’s minority interest in CWSP Rattlesnake Holding, LLC for $132 million in cash consideration. CWSP Rattlesnake Holding LLC indirectly consolidates the Rattlesnake wind project, a 160 MW wind facility with 144 MW of deliverable capacity in Adams County, Washington, as further described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities. The project has a 20-year PPA with Avista Corporation, which began when the facility reached commercial operations in December 2020. The Rattlesnake operations are included in the Company’s Renewables segment. The acquisition was determined to be an asset acquisition and not a business combination, therefore, the Company consolidated the financial information for Rattlesnake on a prospective basis. The assets and liabilities transferred to the Company relate to interests under common control and were recorded at historical cost in accordance with ASC 805-50, Business Combinations - Related Issues . The difference between the cash paid of $132 million and the historical cost of the Company’s acquired interests of $14 million 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 January 12, 2021: (In millions) Rattlesnake Current assets $ 8 Property, plant and equipment 200 Right-of-use assets 12 Total assets acquired 220 Long-term debt (a) 176 Long-term lease liabilities 12 Other current and non-current liabilities 18 Total liabilities assumed 206 Net assets acquired $ 14 (a) Repaid at acquisition date utilizing $107 million contributed by tax equity investor and $103 million contributed by CEG, both recorded as contributions in noncontrolling interest. Of the $210 million contributed, $176 million was utilized to pay down the acquired debt, $29 million was utilized to fund project reserve accounts and $5 million was utilized to pay associated fees. Dispositions Kawailoa Sale — On August 1, 2022, the Company sold 100% of its Class A membership interests in the Kawailoa Partnership to Clearway Renew LLC 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, as further described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities . The assets and liabilities transferred to Clearway Renew LLC relate to interests under common control 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 10, 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 sheet 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The Company’s major classes of property, plant, and equipment were as follows: December 31, 2022 December 31, 2021 Depreciable Lives (In millions) Facilities and equipment $ 9,992 $ 9,747 3 - 40 Years Land and improvements 293 320 Construction in progress (a) 160 84 Total property, plant and equipment 10,445 10,151 Accumulated depreciation (3,024) (2,501) Net property, plant and equipment $ 7,421 $ 7,650 (a) As of December 31, 2022 and 2021, construction in progress includes $17 million and $15 million, respectively, of capital expenditures that relate to prepaid long-term service agreements in the Conventional segment. Depreciation expense related to property, plant and equipment during the years ended December 31, 2022, 2021 and 2020 was $502 million, $499 million and $420 million, respectively. The Company accelerated depreciation of the Pinnacle wind project in connection with the repowering project, which resulted in additional depreciation expense in the amount of $34 million in 2021. The Company recorded long-lived asset impairments during each of the years ended December 31, 2022 and December 31, 2021, as further described in Note 9, Asset Impairments. |
Investments Accounted for by th
Investments Accounted for by the Equity Method and Variable Interest Entities | 12 Months Ended |
Dec. 31, 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 Equity Method Investments The Company’s maximum exposure to loss as of December 31, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below: Name Economic Interest Investment Balance (In millions) Avenal 50% $ 9 Desert Sunlight 25% 235 Elkhorn Ridge 66.7% 22 GenConn (a) 50% 82 San Juan Mesa 75% 16 $ 364 (a) GenConn is a variable interest entity. As of December 31, 2022 and 2021, the Company had $19 million and $14 million, respectively, of undistributed earnings from its equity method investments. The Company acquired its interest in Desert Sunlight on June 30, 2015, for $285 million, which resulted in a difference between the purchase price and the basis of the acquired assets and liabilities of $181 million. The difference is attributable to the fair value of the property, plant and equipment and power purchase agreements. The Company is amortizing the related basis differences to equity in earnings of unconsolidated subsidiaries over the related useful life of the underlying assets acquired. As of December 31, 2022, the carrying value of the basis difference is $129 million. The Company’s pro-rata share of non-recourse debt held by unconsolidated affiliates was $325 million as of December 31, 2022. The following tables present summarized financial information for the Company’s equity method investments: Year Ended December 31, 2022 2021 2020 Income Statement Data: (In millions) GenConn Operating revenues $ 50 $ 55 $ 60 Operating income 16 22 26 Net income 7 13 17 Desert Sunlight Operating revenues 203 205 209 Operating income 137 146 142 Net income 114 112 88 Other (a) (b) Operating revenues 52 49 299 Operating income 18 16 138 Net income 15 13 60 As of December 31, 2022 2021 Balance Sheet Data: (In millions) GenConn Current assets $ 39 $ 38 Non-current assets 312 328 Current liabilities 16 15 Non-current liabilities 170 178 Desert Sunlight Current assets 79 131 Non-current assets 1,175 1,228 Current liabilities 61 64 Non-current liabilities 824 904 Other (a) Current assets 22 26 Non-current assets 157 172 Current liabilities 12 24 Non-current liabilities 91 98 (a) Includes Avenal, Elkhorn Ridge, San Juan Mesa, DGPV Holdco 1, DGPV Holdco 2 and DGPV Holdco 3. DGPV Holdco 1, DGPV Holdco 2 and DGPV Holdco 3 were consolidated by the Company during 2020 and are therefore only included in the summarized income statement data for the year ended December 31, 2020. (b) On February 3, 2021, the Company acquired an additional 35% equity interest in Agua Caliente and removed its equity investment in Agua Caliente and, on December 1, 2021, the Company acquired the remaining 50% equity investment in the Utah Solar Portfolio and removed its equity investment in the Utah Solar Portfolio. As a result, both Agua Caliente and the Utah Solar Portfolio are excluded from the summarized income statement data for the years ended December 31, 2022 and December 31, 2021. Variable Interest Entities, or VIEs Entities that are Consolidated The Company has a controlling financial interest in certain entities which have been identified as VIEs under ASC 810, Consolidations . 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. The Company also has a controlling financial interest in certain partnership arrangements with third-party investors, which also have been identified as VIEs. Under the Company’s arrangements that have been identified as VIEs, the third-party investors are allocated earnings, tax attributes and distributable cash in accordance with the respective limited liability company agreements. Many of these arrangements also provide a mechanism to facilitate achievement of the investor’s specified return by providing incremental cash distributions to the investor at a specified date if the specified return has not yet been achieved. The following is a summary of significant activity during 2022 related to the Company’s consolidated VIEs: Lighthouse Renewable Holdco LLC — The Company, through its indirect, wholly-owned subsidiary, Lighthouse Renewable Class A LLC, holds the Class A membership interests of Lighthouse Renewable Holdco LLC, while a third-party investor holds the Class B membership interests. The Company consolidates Lighthouse Renewable Holdco LLC, which is a VIE, as the Company is the primary beneficiary, through its role as managing member. In addition, Lighthouse Renewable Holdco LLC indirectly holds the Class B membership interests in several tax equity funds, including Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC, Mililani TE Holdco LLC and Waiawa TE Holdco LLC, as further described below. As described in Note 3, Acquisitions and Dispositions , on March 25, 2022, Lighthouse Renewable Holdco LLC acquired Mililani BL Borrower Holdco LLC, the indirect owner of the Class B membership interests of a tax equity fund, Mililani TE Holdco LLC, that holds the Mililani I solar project. Mililani BL Borrower Holdco LLC consolidates Mililani TE Holdco LLC, which is a VIE, as it is the primary beneficiary through its role as managing member. The Class A membership interests are held by a tax equity investor and are reflected as noncontrolling interest on the Company’s consolidated balance sheet. 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. As described in Note 3, Acquisitions and Dispositions , on October 3, 2022, Lighthouse Renewable Holdco LLC acquired Waiawa BL Borrower Holdco LLC, the indirect owner of the Class B membership interests of a tax equity fund, Waiawa TE Holdco LLC, that holds the Waiawa solar project. Waiawa BL Borrower Holdco LLC consolidates Waiawa TE Holdco LLC, which is a VIE, as it is the primary beneficiary through its role as managing member. The Class A membership interests are held by a tax equity investor and are reflected as noncontrolling interest on the Company’s consolidated balance sheet. The third-party investor in Lighthouse Renewable Holdco LLC also acquired and contributed an interest in Waiawa 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. Kawailoa Partnership — As described in Note 3 , Acquisitions and Dispositions , on August 1, 2022, the Company sold 100% of its Class A membership interests in Kawailoa Solar Partnership LLC, or the Kawailoa Partnership, to Clearway Renew LLC. Prior to the sale, the Kawailoa Partnership owned 51% of the Kawailoa solar project, with the remaining 49% owned by a third-party investor. The Kawailoa Partnership consolidated the Kawailoa solar project through its ownership of the Class B membership interests and role as managing member in Kawailoa Solar Holdings LLC, a tax equity fund, which owns the Kawailoa solar project. The Class A membership interests in Kawailoa Solar Holdings LLC are held by a tax equity investor and were reflected as noncontrolling interest on the Company’s consolidated balance sheet. The Company, as the Class A member, was the primary beneficiary through its role as managing member and consolidated the Kawailoa Partnership. Summarized financial information for the Company’s consolidated VIEs consisted of the following as of December 31, 2022: (In millions) Alta TE Holdco Buckthorn Holdings, 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 $ 51 $ 2 $ 75 $ 13 $ 134 $ 49 Property, plant and equipment 306 194 493 123 828 358 Intangible assets 200 — 14 2 — — Total assets 557 196 582 138 962 407 Current and non-current liabilities 38 11 66 53 364 134 Total liabilities 38 11 66 53 364 134 Noncontrolling interest 39 29 13 59 487 230 Net assets less noncontrolling interests $ 480 $ 156 $ 503 $ 26 $ 111 $ 43 (a) DGPV Funds is comprised of Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC, which are all tax equity funds. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC, Mililani TE Holdco LLC and Waiawa TE Holdco LLC, which are consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is a consolidated VIE. (In millions) Oahu Solar LLC Pinnacle Repowering TE Holdco Rattlesnake TE Holdco LLC Rosie TargetCo LLC Wildorado TE Holdco Other (a) Other current and non-current assets $ 39 $ 9 $ 13 $ 43 $ 20 $ 15 Property, plant and equipment 164 102 185 238 209 154 Intangible assets — 16 — — — 1 Total assets 203 127 198 281 229 170 Current and non-current liabilities 22 5 17 101 18 69 Total liabilities 22 5 17 101 18 69 Noncontrolling interest 26 43 91 133 110 70 Net assets less noncontrolling interests $ 155 $ 79 $ 90 $ 47 $ 101 $ 31 (a) Other is comprised of Elbow Creek TE Holdco and Spring Canyon TE Holdco projects. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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 approximates 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 December 31, 2022 As of December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Liabilities: Long-term debt, including current portion — affiliate $ 2 $ 2 $ 1 $ 1 Long-term debt, including current portion — external (a) 6,874 6,288 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 December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 Level 2 Level 3 Level 2 Level 3 (In millions) Long-term debt, including current portion $ 1,836 $ 4,454 $ 2,160 $ 5,838 Recurring Fair Value Measurements The Company records its derivative assets and liabilities at fair market value on its consolidated balance sheets. 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 December 31, 2022 As of December 31, 2021 Fair Value Fair Value (a) Fair Value Fair Value (a) (In millions) Level 2 (b) Level 3 Level 2 Level 3 Derivative assets Interest rate contracts $ 89 $ — $ 6 $ — Other financial instruments (c) — 17 — 25 Total assets $ 89 $ 17 $ 6 $ 25 Derivative liabilities Commodity contracts $ — $ 353 $ — $ 179 Interest rate contracts — — 63 — Total liabilities $ — $ 353 $ 63 $ 179 (a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of December 31, 2022 and December 31, 2021. (b) The Company’s interest rate swaps are measured at fair value using an income approach, which use readily observable inputs, such as forward interest rates (e.g., LIBOR and SOFR) and contractual terms to estimate fair value. (c) Includes 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: Year ended December 31, 2022 2021 (In millions) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Beginning balance $ (154) $ (15) Settlements 61 60 Contracts acquired — (52) Additions due to loss of NPNS exception (22) — Total losses for the period included in earnings (221) (147) Ending balance $ (336) $ (154) Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, $ (221) $ (147) 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 December 31, 2022, contracts valued with prices provided by models and other valuation techniques make up 100% of derivative liabilities and 100% of 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 December 31, 2022: December 31, 2022 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Commodity Contracts $ — $ (353) Discounted Cash Flow Forward Market Price (per MWh) $ 21.25 $ 100.66 $ 41.09 Other Financial Instruments 17 — Discounted Cash Flow Forecast annual generation levels of certain DG solar facilities 58,539 MWh 117,078 MWh 112,897 MWh The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of December 31, 2022: Significant Observable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power Buy Increase/(Decrease) Higher/(Lower) 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 December 31, 2022, the non-performance reserve was a $40 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 in Note 2, Summary of Significant Accounting Policies , 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 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. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities ASC 815 requires the Company to recognize all derivative instruments on the balance sheet as either assets or liabilities and to measure them at fair value each reporting period unless they qualify for a NPNS exception. The Company may elect to designate certain derivatives as cash flow hedges, if certain conditions are met, and defer the change in fair value of the derivatives to accumulated OCI/OCL, until the hedged transactions occur and are recognized in earnings. For derivatives that are not designated as cash flow hedges or do not qualify for hedge accounting treatment, the changes in the fair value will be immediately recognized in earnings. Certain derivative instruments may qualify for the NPNS exception and are therefore exempt from fair value accounting treatment. ASC 815 applies to the Company’s energy related commodity contracts and interest rate swaps. 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 December 31, 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 December 31, 2022, the Company had energy-related derivative instruments extending through 2033. At December 31, 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 December 31, 2022 and 2021: Total Volume December 31, 2022 December 31, 2021 Commodity Units (In millions) Natural Gas MMBtu — 2 Power MWh (18) (17) Interest Dollars $ 1,084 $ 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 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (In millions) Derivatives Designated as Cash Flow Hedges: Interest rate contracts current $ 7 $ — $ — $ 5 Interest rate contracts long-term 18 2 — 3 Total Derivatives Designated as Cash Flow Hedges $ 25 $ 2 $ — $ 8 Derivatives Not Designated as Cash Flow Hedges: Interest rate contracts current $ 19 $ — $ — $ 17 Interest rate contracts long-term 45 4 — 38 Commodity contracts current — — 50 24 Commodity contracts long-term — — 303 155 Total Derivatives Not Designated as Cash Flow Hedges $ 64 $ 4 $ 353 $ 234 Total Derivatives $ 89 $ 6 $ 353 $ 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 December 31, 2022 and 2021, the amount of outstanding collateral paid or received was immaterial. The following tables summarize the offsetting of derivatives by counterparty: Gross Amounts Not Offset in the Statement of Financial Position As of December 31, 2022 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (353) $ — $ (353) Total commodity contracts $ (353) $ — $ (353) Interest rate contracts Derivative assets $ 89 $ — $ 89 Total interest rate contracts $ 89 $ — $ 89 Total derivative instruments $ (264) $ — $ (264) 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: Year ended December 31, 2022 2021 2020 (In millions) Accumulated OCI (OCL) beginning balance $ (13) $ (35) $ (37) Reclassified from accumulated OCI/OCL to income due to realization of previously deferred amounts 5 11 11 Capistrano Wind Portfolio Acquisition 7 — — Mark-to-market of cash flow hedge accounting contracts 28 11 (9) Accumulated OCI (OCL) ending balance $ 27 $ (13) $ (35) Accumulated OCI (OCL) attributable to noncontrolling interests 6 — (2) Accumulated OCI (OCL) attributable to Clearway Energy LLC $ 21 $ (13) $ (33) Income expected to be realized from OCI during the next 12 months $ 5 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/(losses) related to the Company’s derivatives are recorded in the consolidated statements of income as follows: Year ended December 31, 2022 2021 2020 (In millions) Interest Rate Contracts (Interest expense) $ 100 $ 53 $ (38) Commodity Contracts (Operating revenue) (a) (174) (83) (4) (a) Relates to long-term commodity contracts at Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky. During the year ended December 31, 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 6, Fair Value of Financial Instruments |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible Assets — The Company’s intangible assets as of December 31, 2022 and 2021 primarily reflect intangible assets established from its business acquisitions and are comprised of the following: • PPAs — Established predominantly with the acquisitions of the Alta Wind Portfolio, Walnut Creek, Tapestry, Laredo Ridge, Carlsbad Energy Center, Agua Caliente, the Utah Solar Portfolio, and the Capistrano Wind Portfolio. These represent the fair value of the PPAs acquired. These are amortized on a straight-line basis, over the term of the PPA. • Leasehold Rights — Established with the acquisition of the Alta Wind Portfolio, this represents the fair value of contractual rights to receive royalty payments equal to a percentage of PPA revenue from certain projects. These are amortized as a reduction to operating revenue on a straight-line basis over the term of the PPAs. • Customer relationships — Established with the acquisition of Energy Center Omaha and Energy Center Phoenix, these intangibles were included in the Thermal Business and were classified as held for sale at December 31, 2021. The Thermal Business was sold on May 1, 2022. • Customer contracts — Established with the acquisition of Energy Center Phoenix, these intangibles were included in the Thermal Business and were classified as held for sale at December 31, 2021. The Thermal Business was sold on May 1, 2022. • Emission Allowances — These intangibles primarily consist of SO 2 and NO x emission allowances established with the El Segundo, Walnut Creek and Carlsbad Energy Center acquisitions. These emission allowances are held-for-use and are amortized to cost of operations, with NO x allowances amortized on a straight-line basis and SO 2 allowances amortized based on units of production. • Other — Consists of a) the acquisition date fair value of the contractual rights to a ground lease for South Trent and to utilize certain interconnection facilities for Blythe as well as land rights acquired in connection with the acquisition of Elbow Creek and Langford Wind; b) development rights related to certain solar business acquisitions; c) RECs acquired in connection with the acquisition of the Utah Solar Portfolio; and d) favorable land leases acquired in connection with the acquisition of the Utah Star Portfolio. The following tables summarize the components of intangible assets subject to amortization: Year ended December 31, 2022 PPAs Leasehold Rights Emission Allowances Other Total (In millions) January 1, 2022 $ 2,985 $ 86 $ 17 $ 16 $ 3,104 Acquisitions (a) 336 — — — 336 Other — — — 2 2 December 31, 2022 3,321 86 17 18 3,442 Less accumulated amortization (833) (34) (4) (6) (877) Net carrying amount $ 2,488 $ 52 $ 13 $ 12 $ 2,565 ( a) The weighted average life of acquired intangibles was 10 years for PPAs. Year ended December 31, 2021 PPAs Leasehold Rights Customer Relationships Customer Contracts Emission Other Total (In millions) January 1, 2021 $ 1,661 $ 86 $ 66 $ 15 $ 17 $ 12 $ 1,857 Acquisitions (a) 1,324 — — — — 4 1,328 Reclassified to held for sale (b) — — (66) (15) — — (81) December 31, 2021 2,985 86 — — 17 16 3,104 Less accumulated amortization (566) (30) — — (3) (6) (605) Net carrying amount $ 2,419 $ 56 $ — $ — $ 14 $ 10 $ 2,499 (a) The weighted average life of acquired intangibles was 17 years for PPAs, 15 years for RECs and 15 years for favorable leases. (b) Thermal Business intangible assets were classified as held for sale at December 31, 2021, and the Thermal Business was subsequently sold on May 1, 2022. The Company recorded amortization expense of $174 million during the year ended December 31, 2022, $143 million for the year ended December 31, 2021 and $91 million for the year ended December 31, 2020. Of these amounts, $168 million for the year ended December 31, 2022, $135 million for the year ended December 31, 2021 and $88 million for the year ended December 31, 2020, were related to the amortization of intangible assets for power purchase agreements and were recorded to contract amortization expense, which reduced operating revenues in the consolidated statements of income. The Company estimates the future amortization expense for its intangibles for the next five years as follows: (In millions) 2023 $ 182 2024 180 2025 180 2026 180 2027 180 |
Asset Impairments
Asset Impairments | 12 Months Ended |
Dec. 31, 2022 | |
Asset Impairments [Abstract] | |
Asset Impairments | Asset Impairments 2022 Impairment Losses During the fourth quarter of 2022, in preparation and review of its annual budget, the Company updated its long-term estimates of operating and capital expenditures and revised its assessment of long-term merchant power prices, which was primarily informed by present conditions and did not contemplate future policy changes, which could impact renewable energy power prices. The impairment analysis reviews certain qualitative factors as well as the results of long-term operating expectations and its carrying value to determine if impairment indicators are present. The impairment analysis indicated that the projected future cash flows for certain projects within the Renewables segment no longer supported the recoverability of the carrying value of the related long-lived assets. As such, the Company recorded an impairment loss of $16 million, which primarily related to property, plant, and equipment to reflect the assets at fair market value. The fair value of the facilities was determined using an income approach by applying a discounted cash flow methodology to the updated long-term budgets for each respective plant. The income approach included key inputs such as forecasted merchant power prices, operations and maintenance expense, and discount rates. The resulting fair value is a Level 3 fair value measurement. 2021 Impairment Losses The impairment analysis indicated that the projected future cash flows for several wind projects within the Renewables segment no longer supported the recoverability of the carrying value of the related long-lived assets. As such, the Company recorded an impairment loss of $6 million, which primarily related to property, plant, and equipment to reflect the assets at fair market value. The fair value of the facilities was determined using an income approach by applying a discounted cash flow methodology to the updated long-term budgets for each respective plant. The income approach included key inputs such as forecasted merchant power prices, operations and maintenance expense, and discount rates. The resulting fair value is a Level 3 fair value measurement. 2020 Impairment Losses The impairment analysis indicated that the projected future cash flows for several wind projects within the Renewables segment no longer supported the recoverability of the carrying value of the related long-lived assets. As such, the Company recorded an impairment loss of $24 million, which primarily related to property, plant, and equipment to reflect the assets at fair market value. The fair value of the facilities was determined using an income approach by applying a discounted cash flow methodology to the updated long-term budgets for each respective plant. The income approach included key inputs such as forecasted merchant power prices, operations and maintenance expense, and discount rates. The resulting fair value is a Level 3 fair value measurement. Additionally, during the fourth quarter of 2020, as the Company updated its estimated cash flows in connection with the preparation and review of the Company’s annual budget, the Company determined that there was a significant decrease in the estimated future cash flows for its equity method investment in San Juan Mesa, a facility in the Renewables segment located in Elida, New Mexico. The decrease in the forecasted cash flows which was primarily driven by a decline in forecasted revenue in future merchant periods, was significant enough to be considered an indication of a decline in value of the investment that was not temporary. The Company concluded there was an other-than-temporary impairment of its investment and recorded an impairment loss of $8 million to reflect the investment at fair market value. The resulting fair value is a Level 3 fair value measurement. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company’s borrowings, including short-term and long-term portions consisted of the following: December 31, 2022 December 31, 2021 Interest rate % (a)(b) Letters of Credit Outstanding at December 31, 2022 (In millions, except rates) Intercompany Note with Clearway Energy, Inc. $ 2 $ 1 4.550 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 1.750 $ 125 Bridge Loan, due 2022 — 335 S+1.250 Non-recourse project-level debt: Agua Caliente Solar LLC, due 2037 649 684 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 709 756 5.696-7.015 23 Alta Wind Realty Investments LLC, due 2031 22 24 7.000 — Borrego, due 2024 and 2038 51 54 Various — Buckthorn Solar, due 2025 119 123 L+1.750 21 Capistrano Wind Portfolio, due 2029 and 2031 156 — L+2.000 36 Carlsbad Energy Holdings LLC, due 2027 115 136 L+1.750 63 Carlsbad Energy Holdings LLC, due 2038 407 407 4.120 — Carlsbad Holdco, LLC, due 2038 197 205 4.210 5 CVSR, due 2037 627 652 2.339-3.775 — CVSR Holdco Notes, due 2037 160 169 4.680 12 DG-CS Master Borrower LLC, due 2040 413 441 3.510 30 El Segundo Energy Center, due 2023 — 193 L+1.875-2.500 80 Kawailoa Solar Portfolio LLC, due 2026 — 78 L+1.375 — Laredo Ridge, due 2028 — 72 L+2.125 — Marsh Landing, due 2023 19 84 L+2.375 45 Mililani I, due 2027 47 — L+1.500 6 NIMH Solar, due 2024 163 176 L+2.000 10 Oahu Solar Holdings LLC, due 2026 83 86 L+1.375 9 Rosie Class B LLC, due 2027 76 78 L+1.750 17 Tapestry Wind LLC, due 2031 — 85 L+1.375 — Utah Solar Holdings, due 2036 257 273 3.590 9 Viento Funding II, LLC, due 2023 and 2029 (d) 184 29 S+1.475 26 Waiawa, due 2023 and 2028 97 — L+1.000-1.250 10 Walnut Creek, due 2023 19 74 L+1.875 74 WCEP Holdings, LLC, due 2023 26 30 L+3.000 — Other 137 151 Various 200 Subtotal non-recourse project-level debt 4,745 5,073 Total debt 6,872 7,779 Less current maturities (324) (773) Less net debt issuance costs (61) (71) Add premiums (e) 4 4 Total long-term debt $ 6,491 $ 6,939 (a) As of December 31, 2022, L+ equals 3 month LIBOR plus x%, except Marsh Landing, due 2023, Waiawa, due 2023, 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. Under the project-level financing arrangements, each project is permitted to pay distributions out of available cash as long as certain conditions are satisfied, including that no default under the applicable arrangements has occurred and that each project is otherwise in compliance with all relevant conditions under the financing agreements, including meeting required financial ratios, where applicable. The Company’s project-level financing arrangements are non-recourse to the Company, thus, each project pledges its underlying assets as collateral, and if a project is in default of its financing arrangement, then the related lender could demand repayment of the project or enforce their security interests with respect to the pledged collateral. As of December 31, 2022, the Company was in compliance with all of the required principal, interest, sinking fund and redemption covenants. Bridge Loan Agreement On November 30, 2021, Clearway Energy Operating LLC entered into a senior secured bridge credit agreement, or the Bridge Loan Agreement. The Bridge Loan Agreement provided for a senior secured term loan facility in an aggregate principal amount of $335 million. The borrowings under the term loan facility were used to acquire the Utah Solar Portfolio on December 1, 2021, as further described in Note 3, Acquisitions and Dispositions . 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 as further described in Note 3, Acquisitions and Dispositions . Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility On November 30, 2021, Clearway Energy Operating LLC entered into the Sixth Amendment to Amended and Restated Credit Agreement, which amended the Company’s revolving credit facility to provide for an increase of the maximum permitted Borrower Leverage Ratio (as defined in the credit agreement governing the Company’s revolving credit facility) to 6.00 to 1.00 from November 30, 2021 through May 2, 2022. The Sixth Amendment also (i) permits the incurrence of the term loan facility under the Bridge Loan Agreement, (ii) permits the incurrence of hedging obligations, subject to certain conditions, and provides for a $40 million basket for cash collateral which may be provided to secure hedging obligations (iii) permits the prepayment of unsecured, junior or subordinated indebtedness at any time following May 3, 2022, subject to certain conditions, including that, after giving effect to such payment, the Borrower Leverage Ratio would not be greater than 5.50 to 1.00 and the Borrower Interest Coverage Ratio (as defined in the credit agreement governing the Company’s revolving credit facility) would not be less than 1.75 to 1.00 and (iv) implements certain other technical modifications. As of December 31, 2022, the Company had no outstanding borrowings under the revolving credit facility and $125 million in letters of credit outstanding. During the year ended December 31, 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. The facility will continue to be used for general corporate purposes including financing of future acquisitions and posting letters of credit. 2032 Senior Notes On October 1, 2021, Clearway Energy Operating LLC completed the sale of $350 million of senior unsecured notes due 2032, or the 2032 Senior Notes. The 2032 Senior Notes bear interest at 3.750% and mature on January 15, 2032. Interest on the 2032 Senior Notes is payable semi-annually on January 15 and July 15 of each year. The 2032 Senior Notes are unsecured obligations of Clearway Energy Operating LLC and are guaranteed by Clearway Energy LLC and by certain of Clearway Energy Operating LLC’s wholly-owned current and future subsidiaries. The net proceeds from the 2032 Senior Notes were used, together with existing corporate liquidity, to repurchase the 2026 Senior Notes, as described below. 2026 Senior Notes Tender Offer and Redemption In October 2021, the Company repurchased and redeemed an aggregate principal amount of $350 million of the 2026 Senior Notes, through the cash tender offer announced on September 24, 2021 and the redemption of the remaining principal amount of $227 million on October 25, 2021. The 2026 Senior Notes repurchased and redeemed in October 2021 were effectuated at a premium of approximately 103% for total consideration of $359 million and, as a result, the Company recorded a loss on extinguishment in the amount of $9 million. The Company recorded an additional $3 million loss on extinguishment to write off the remaining unamortized deferred financing fees related to the 2026 Senior Notes. 2031 Senior Notes On March 9, 2021, Clearway Energy Operating LLC completed the sale of $925 million of senior unsecured notes due 2031, or the 2031 Senior Notes. The 2031 Senior Notes bear interest at 3.750% and mature on February 15, 2031. Interest on the 2031 Senior Notes is payable semi-annually on February 15 and August 15 of each year. The 2031 Senior Notes are unsecured obligations of Clearway Energy Operating LLC and are guaranteed by Clearway Energy LLC and by certain of Clearway Energy Operating LLC’s wholly-owned current and future subsidiaries. The net proceeds from the 2031 Senior Notes were used to repurchase the 2025 Senior Notes, as described below, as well as to repay amounts outstanding under the Company’s revolving credit facility and for general corporate purposes. 2025 Senior Notes Tender Offer and Redemption In March 2021, the Company repurchased and redeemed an aggregate principal amount of $600 million of the 2025 Senior Notes, through the cash tender offer announced on March 2, 2021 and the redemption of the remaining principal amount of $183 million on March 17, 2021. The 2025 Senior Notes repurchased and redeemed in March 2021 were effectuated at a premium of approximately 106% for total consideration of $636 million and, as a result, the Company recorded a loss on extinguishment in the amount of $36 million. The Company recorded an additional $5 million loss on extinguishment to write off the remaining unamortized deferred financing fees related to the 2025 Senior Notes. Project-level Debt El Segundo Energy Center On December 15, 2022, the Company repaid the outstanding project-level debt of El Segundo Energy Center in the amount of approximately $130 million, utilizing cash on hand. The project-level debt had an original maturity of August 2023. Waiawa On October 3, 2022, as part of the acquisition of Waiawa, as further described in Note 3, Acquisitions and Dispositions , the Company assumed the project’s financing agreement, which included a $22 million construction loan that converts to a term loan upon the project reaching substantial completion, a $55 million tax equity bridge loan and a $26 million sponsor equity bridge loan. The sponsor equity bridge loan was repaid at acquisition date, along with $2 million in associated fees, utilizing $12 million from the cash equity investor, as well as $16 million of the Company’s purchase price, which was contributed back by CEG. The tax equity bridge loan will be repaid with the final proceeds from the tax equity investor that will be received upon Waiawa reaching substantial completion, which is expected to occur in the first half of 2023. Subsequent to the Waiawa acquisition, the Company borrowed an additional $20 million in construction loans. As of December 31, 2022, the Company had $42 million in outstanding construction loans in addition to the $55 million tax equity bridge loan referenced above. 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 assumed 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, a $60 million tax equity bridge loan and a $27 million sponsor equity bridge loan. The sponsor equity bridge loan was repaid at acquisition date, along with $2 million in associated fees, utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s purchase price, which was contributed back by CEG. On December 7, 2022, when the project reached substantial completion, the tax equity investor contributed an additional $42 million and CEG contributed an additional $11 million, which was utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan, to fund $7 million in construction completion reserves and to pay $4 million in associated fees. Subsequent to the Mililani I acquisition, the Company had borrowed an additional $32 million in construction loans that was converted to a term loan in the amount of $48 million. As of December 31, 2022, the Company had a $47 million term loan outstanding, as $1 million was paid in December 2022. 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. Agua Caliente Solar LLC As part of the acquisition of Agua Caliente Borrower 1 LLC and the consolidation of Agua Caliente, as further described in Note 3, Acquisitions and Dispositions, the Company consolidated non-recourse debt of $716 million related to Agua Caliente Solar, LLC on February 3, 2021. The debt consists of a credit agreement with the Federal Financing Bank and accrues interest at fixed rates between 2.395% and 3.633%, which matures in 2037. Pinnacle Repowering Partnership HoldCo LLC On March 10, 2021, the Company entered into a financing agreement for non-recourse debt for a total commitment of $126 million related to the repowering of the Pinnacle wind project. The debt consists of a construction loan at an interest rate of LIBOR plus 1.00%. The Company’s initial borrowings of $79 million were utilized to repay $53 million of the outstanding balance under the Tapestry Wind LLC financing agreement, which related to the Pinnacle wind project, to pay vendor invoices and fees and to acquire certain equipment from Clearway Renew LLC to be utilized in the repowering project. On December 15, 2021, the Company repaid the outstanding principal amount of $117 million. Interest Rate Swaps — Project Financings Many of the Company’s project subsidiaries entered into interest rate swaps, intended to hedge the risks associated with interest rates on non-recourse project level debt. These swaps amortize in proportion to their respective loans and are floating for a fixed rate where the project subsidiary pays its counterparty the equivalent of a fixed interest payment on a predetermined notional amount and will receive quarterly the equivalent of a floating interest payment based on the same notional amount. All interest rate swap payments by the project subsidiary and its counterparty are made quarterly and the LIBOR or SOFR is determined in advance of each interest period. The following table summarizes the swaps, some of which are forward starting as indicated, related to the Company’s project level debt as of December 31, 2022: % of Principal Fixed Interest Rate Floating Interest Rate Notional Amount at December 31, 2022 (In millions) Effective Date Maturity Date Avra Valley 88 % 2.333 % 3-Month LIBOR $ 32 November 30, 2012 November 30, 2030 Alta Wind Asset Management 100 % 2.470 % 3-Month LIBOR 12 May 22, 2013 May 15, 2031 Borrego 100 % 0.476 % 3-Month LIBOR 6 June 30, 2020 December 31, 2024 Buckthorn Solar 81 % Various 3-Month LIBOR 96 February 28, 2018 December 31, 2041 Carlsbad Energy Holdings 100 % Various 3-Month LIBOR 115 Various September 30, 2027 Capistrano Wind Portfolio 95 % Various 3-Month LIBOR 148 Various Various Kansas South 75 % 2.368 % 6-Month LIBOR 14 June 28, 2013 December 31, 2030 Marsh Landing 100 % Various 3-Month LIBOR 19 June 28, 2013 June 30, 2023 Mililani I 94 % 2.041 % 3-Month LIBOR 44 September 30, 2022 September 30, 2042 NIMH Solar 100 % Various 3-Month LIBOR 163 September 30, 2020 Various Oahu Solar 96 % Various 3-Month LIBOR 80 November 30, 2019 October 31, 2040 Rosie Class B 95 % 1.446 % 3-Month LIBOR 73 December 31, 2020 Various South Trent 90 % 3.847 % 3-Month LIBOR 27 June 14, 2019 June 30, 2028 Viento Funding II 90 % 2.530 % 3-Month SOFR 165 Various Various Waiawa 50 % 2.088 % 3-Month LIBOR 48 December 31, 2022 December 31, 2042 Walnut Creek 94 % 3.543 % 3-Month LIBOR 18 June 28, 2013 May 31, 2023 WCEP Holdings 92 % 4.003 % 3-Month LIBOR 24 June 28, 2013 May 31, 2023 Total $ 1,084 Annual Maturities Annual payments based on the maturities of the Company’s debt, for the years ending after December 31, 2022, are as follows: (In millions) 2023 (a) $ 421 2024 410 2025 382 2026 361 2027 399 Thereafter 4,899 Total $ 6,872 (a) At December 31, 2022, amount includes $97 million recorded in long-term debt on the Company’s consolidated balance sheet that is due in 2023 and is either being funded through long-term equity contributions or is converting to long-term debt. |
Members' Equity
Members' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Members' Equity [Abstract] | |
Members' Equity | Members’ Equity The following table lists the distributions paid on the Company’s Class A, Class B, Class C and Class D units during the year ended December 31, 2022: Fourth Quarter 2022 Third Quarter 2022 Second Quarter 2022 First Quarter 2022 Distributions per Class A and Class B units $ 0.3672 $ 0.3604 $ 0.3536 $ 0.3468 Distributions per Class C and Class D units 0.3672 0.3604 0.3536 0.3468 On February 15, 2023, the Company declared a quarterly distribution on its Class A, Class B, Class C and Class D units of $0.3745 per unit payable on March 15, 2023. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 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 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). The Company generated more than 10% of its revenues from the following customers for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Customer Conventional Renewables Conventional Renewables Conventional Renewables SCE 17% 17% 17% 16% 18% 16% PG&E 10% 15% 10% 13% 10% 8% Year ended December 31, 2022 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 417 $ 696 $ 77 $ — $ 1,190 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 89 298 50 (2) 435 Depreciation, amortization and accretion 131 381 — — 512 Impairment losses — 16 — — 16 General and administrative — — 2 36 38 Transaction and integration costs — — — 7 7 Development costs — — 2 — 2 Total operating costs and expenses 220 695 54 41 1,010 Gain on sale of business — — — 1,292 1,292 Operating income 197 1 23 1,251 1,472 Equity in earnings of unconsolidated affiliates 3 26 — — 29 Other income, net 1 6 — 10 17 Loss on debt extinguishment — (2) — — (2) Interest expense (40) (87) (6) (99) (232) Income (loss) before income taxes 161 (56) 17 1,162 1,284 Income tax expense — 2 — — 2 Net Income (Loss) 161 (58) 17 1,162 1,282 Net Income Attributable to Clearway Energy LLC $ 161 $ 49 $ 17 $ 1,161 $ 1,388 Balance Sheet Equity investments in affiliates $ 82 $ 282 $ — $ — $ 364 Capital expenditures (b)(c) 11 33 11 1 56 Total Assets $ 2,251 $ 9,515 $ — $ 546 $ 12,312 (a) Includes eliminations (b) Includes accruals (c) Thermal capital expenditures, including accruals, prior to the sale of the Thermal Business on May 1, 2022. Year ended December 31, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 441 $ 641 $ 204 $ — $ 1,286 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 90 229 134 (2) 451 Depreciation, amortization and accretion 132 354 23 — 509 Impairment losses — 6 — — 6 General and administrative — — 4 34 38 Transaction and integration costs — — — 7 7 Development costs — — 4 2 6 Operating income (loss) 219 52 39 (41) 269 Equity in earnings of unconsolidated affiliates 6 26 — — 32 Other income, net — 2 1 — 3 Loss on debt extinguishment — (1) — (52) (53) Interest expense (53) (142) (18) (99) (312) Income (loss) before income taxes 172 (63) 22 (192) (61) Income tax expense — 2 — — 2 Net Income (Loss) 172 (65) 22 (192) (63) Net Income (Loss) Attributable to Clearway Energy LLC $ 172 $ 109 $ 22 $ (193) $ 110 Balance Sheet Equity investments in affiliates $ 86 $ 295 $ — $ — $ 381 Capital expenditures (b) 12 77 29 1 119 Total Assets $ 2,442 $ 9,603 $ 631 $ 42 $ 12,718 (a) Includes eliminations (b) Includes accruals Year ended December 31, 2020 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 437 $ 569 $ 193 $ — $ 1,199 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 90 147 131 (2) 366 Depreciation, amortization and accretion 132 264 32 — 428 Impairment losses — 24 — — 24 General and administrative — — 3 30 33 Transaction and integration costs — — — 9 9 Development costs — — 5 — 5 Operating income (loss) 215 134 22 (37) 334 Equity in earnings (losses) of unconsolidated affiliates 8 (1) — — 7 Impairment loss on investment — (8) — — (8) Gain on sale of unconsolidated affiliates — — — 49 49 Other income, net 1 4 — (1) 4 Loss on debt extinguishment — (21) — (3) (24) Interest expense (84) (216) (19) (95) (414) Net Income (Loss) 140 (108) 3 (87) (52) Net Income (Loss) Attributable to Clearway Energy LLC $ 140 $ 4 $ 3 $ (86) $ 61 (a) Includes eliminations |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 $71 million, $56 million and $37 million for the years ended December 31, 2022, 2021 and 2020, respectively. There was a balance of $14 million and $9 million due to RENOM as of December 31, 2022 and 2021, respectively. 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 Clearway 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 $16 million, $14 million and $10 million for the years ended December 31, 2022, 2021 and 2020, respectively. There was a balance of $3 million and $2 million due to CEG as of December 31, 2022 and 2021, respectively. 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 $5 million, $4 million and $2 million under these agreements for the years ended December 31, 2022, 2021 and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Gas and Transportation Commitments The Company has entered into contractual arrangements to procure power, fuel and associated transportation services for the Thermal Business. For the years ended December 31, 2022, 2021 and 2020, the Company purchased $20 million, $40 million, and $32 million, respectively, under such arrangements. 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. Contingencies The Company’s material legal proceeding is described below. The Company believes that it has a valid defense to this legal proceeding and intends to defend it 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 matter 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 proceeding 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 estimate of the contingency 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 proceeding 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Accounting for Leases The Company evaluates each arrangement at inception to determine if it contains a lease. Substantially all of the Company’s leases are operating leases. Lessee The Company records its operating lease liabilities at the present value of the lease payments over the lease term at lease commencement date. Lease payments include fixed payment amounts as well as variable rate payments based on an index initially measured at lease commencement date. Variable payments, including payments based on future performance and based on index changes, are recorded when the expense is probable. The Company determines the relevant lease term by evaluating whether renewal and termination options are reasonably certain to be exercised. The Company uses its incremental borrowing rate to calculate the present value of the lease payments, based on information available at the lease commencement date. The Company’s leases consist of land leases for numerous operating asset locations, real estate leases and equipment leases. The terms and conditions for these leases vary by the type of underlying asset. Lease expense for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: (In millions) December 31, 2022 December 31, 2021 December 31, 2020 Operating lease cost - Fixed $ 36 $ 27 $ 19 Operating lease cost - Variable 11 15 9 Total lease cost $ 47 $ 42 $ 28 Operating lease information as of December 31, 2022 and 2021 was as follows: (In millions, except term and rate) December 31, 2022 December 31, 2021 Right-of-use assets - operating leases, net $ 527 $ 550 Short-term lease liability - operating leases (a) $ 6 $ 8 Long-term lease liability - operating leases 548 561 Total lease liabilities $ 554 $ 569 Weighted average remaining lease term (in years) 27 28 Weighted average discount rate 4.1 % 3.5 % Cash paid for operating leases $ 28 $ 26 (a) Short-term lease liability balances are included within the accrued expenses and other current liabilities line item of the consolidated balance sheets as of December 31, 2022 and 2021. Minimum future rental payments of operating lease liabilities as of December 31, 2022 are as follows: (In millions) 2023 $ 28 2024 30 2025 30 2026 31 2027 32 Thereafter 831 Total lease payments 982 Less imputed interest (428) Total lease liability - operating leases $ 554 Mililani I Lease Agreement The Mililani I project is party to a land lease agreement with a wholly-owned subsidiary of CEG. The project is leasing the land for a period of 36 years. The Company has a lease liability of $20 million as of December 31, 2022 and a corresponding right-of-use asset of $19 million related to the lease as of December 31, 2022. Oahu Solar Lease Agreements The Oahu Solar projects are party to various land lease agreements with a wholly-owned subsidiary of CEG. The projects are leasing the land for a period of 35 years, with the ability to renew the lease for two additional five-year periods. The Company has a lease liability of $20 million as of both December 31, 2022 and 2021 and a corresponding right-of-use asset related to the lease of $17 million and $18 million as of December 31, 2022 and 2021, respectively. Rosamond Central Lease Agreement The Rosamond Central project is party to a land lease agreement with a wholly-owned subsidiary of CEG. The project is leasing the land for a period of 35 years, with the ability to renew the lease for two additional five-year periods. The Company has a lease liability of $12 million as of both December 31, 2022 and 2021 and a corresponding right-of-use asset of $11 million related to the lease as of both December 31, 2022 and 2021. Lessor The majority of the Company’s revenue is obtained through PPAs or other contractual agreements that are accounted for as leases. These leases are comprised of both fixed payments and variable payments contingent upon volumes or performance metrics. The terms of the leases are further described in Item 2 — Properties of this Form 10-K. Many of the leases have renewal options at the end of the lease term. Termination may be allowed under specific circumstances in the lease arrangements, such as under an event of default. All of the Company’s active leases are operating leases. Certain of these leases have both lease and non-lease components, and the Company allocates the transaction price to the components based on standalone selling prices. The following amounts of energy and capacity revenue are related to the Company’s operating leases: Conventional Generation Renewables Thermal Total December 31, 2022 (In millions) Energy revenue $ 6 $ 809 $ 1 $ 816 Capacity revenue 435 — — 435 Operating revenue $ 441 $ 809 $ 1 $ 1,251 Conventional Generation Renewables Thermal Total December 31, 2021 (In millions) Energy revenue $ 9 $ 716 $ 2 $ 727 Capacity revenue 455 — — 455 Operating revenue $ 464 $ 716 $ 2 $ 1,182 Conventional Generation Renewables Thermal Total December 31, 2020 (In millions) Energy revenue $ 10 $ 554 $ 2 $ 566 Capacity revenue 451 — — 451 Operating revenue $ 461 $ 554 $ 2 $ 1,017 Minimum future rent payments for the remaining periods related to the Conventional segment operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 261 2024 106 2025 107 2026 108 2027 109 Thereafter 1,281 Total lease payments $ 1,972 Property, plant and equipment, net related to the Company’s operating leases were as follows: (In millions) December 31, 2022 December 31, 2021 Property, plant and equipment $ 8,630 $ 8,981 Accumulated depreciation (2,855) (2,827) Net property, plant and equipment $ 5,775 $ 6,154 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Registrant | Clearway Energy LLC (Parent) Condensed Financial Information of Registrant Condensed Statements of Income Year ended December 31, (In millions) 2022 2021 2020 Total operating costs and expenses $ 1 $ — $ — Equity in earnings of consolidated affiliates 1,379 110 61 Interest income 10 — — Total other income 1,389 110 61 Net Income Attributable to Clearway Energy LLC $ 1,388 $ 110 $ 61 Clearway Energy LLC (Parent) Condensed Balance Sheets December 31, December 31, 2022 2021 ASSETS (In millions) Current Assets Cash and cash equivalents $ 536 $ 33 Other current assets 1 — Other Assets Investment in consolidated subsidiaries 2,034 1,497 Total Assets $ 2,571 $ 1,530 LIABILITIES AND MEMBERS’ EQUITY Current Liabilities Accounts payable — affiliates $ 1 $ 5 Other Liabilities Other non-current liabilities 1 — Total Liabilities 2 5 Commitments and Contingencies Members’ Equity Contributed capital 1,308 1,495 Retained earnings 1,240 43 Accumulated other comprehensive income (loss) 21 (13) Total Members’ Equity 2,569 1,525 Total Liabilities and Members’ Equity $ 2,571 $ 1,530 Clearway Energy LLC (Parent) Condensed Statements of Cash Flows Years ended December 31, 2022 2021 2020 (In millions) Cash Flows from Operating Activities Net Cash Provided by Operating Activities $ 8 $ — $ — Cash Flows from Investing Activities Investments in consolidated affiliates 845 202 306 Net Cash Provided by Investing Activities 845 202 306 Cash Flows from Financing Activities Transfer of funds under intercompany cash management arrangement (42) (20) (65) Proceeds from issuance of Class C units — — 62 Tax-related distributions (19) — — Payments of distributions (289) (268) (211) Net Cash Used in Financing Activities (350) (288) (214) Net Increase (Decrease) in Cash and Cash Equivalents 503 (86) 92 Cash and Cash Equivalents at Beginning of Period 33 119 27 Cash and Cash Equivalents at End of Period $ 536 $ 33 $ 119 Background Clearway Energy LLC, together with its consolidated subsidiaries, or the Company, is an energy infrastructure investor with a focus on investments in clean energy 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 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. The majority of the Company’s revenues are derived from 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 Clearway Energy LLC through its controlling interest, with CEG’s interest shown as noncontrolling interest in the 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 Clearway Energy LLC through its ownership of Clearway Energy LLC Class B and Class D units. From time to time, CEG may also hold shares of Clearway Inc’s Class A and/or Class C common stock. As of December 31, 2022, Clearway, Inc. owned 57.88% of the economic interests of the Company, with CEG owning 42.12% of the economic interests of the Company. For further discussion, see Note 11, Members’ Equity. Basis of Presentation The condensed parent-only company financial statements have been prepared in accordance with Rule 12-04 of Regulation S-X, as the restricted net assets of Clearway Energy LLC’s subsidiaries exceed 25% of the consolidated net assets of Clearway Energy LLC. The parent’s 100% investment in its subsidiaries has been recorded using the equity basis of accounting in the accompanying condensed parent-only financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto of Clearway Energy LLC. Note 2 — Long-Term Debt For a discussion of Clearway Energy LLC’s financing arrangements, see Note 10, Long-term Debt, to the Company’s consolidated financial statements. Note 3 — Commitments, Contingencies and Guarantees See Note 14, Commitments and Contingencies, to the Company’s consolidated financial statements for a detailed discussion of Clearway Energy LLC’s commitments and contingencies. Note 4 — Distributions |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company’s consolidated financial statements have been prepared in accordance with GAAP. The FASB ASC is the source of authoritative GAAP to be applied by nongovernmental entities. In addition, the rules and interpretative releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. |
Principles of Consolidation | The consolidated financial statements include the Company’s accounts and operations and those of its subsidiaries in which it has a controlling financial interest. All significant intercompany transactions and balances have been eliminated in consolidation. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist through arrangements that do not involve controlling voting interests. As such, the Company applies the guidance of ASC 810, Consolidations, |
Cash and Cash Equivalents | Cash and cash equivalents include highly liquid investments with an original maturity of three months or less at the time of purchase. |
Restricted Cash | 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. |
Accounts Receivable - Trade and Allowance for Credit Loss | Accounts Receivable — Trade and Allowance for Credit LossesAccounts receivable — trade are reported on the consolidated balance sheet at the invoiced amount adjusted for any write-offs and the allowance for credit losses. The allowance for credit losses is reviewed periodically based on amounts past due and their significance. The allowance for credit losses |
Inventory | Inventory Inventory consists of spare parts and is valued at weighted average cost, unless evidence indicates that the weighted average cost will not be recovered with a normal profit in the ordinary course of business. Inventory is removed when used for repairs, maintenance or capital projects. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, however impairment adjustments are recorded whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Significant additions or improvements extending asset lives are capitalized as incurred, while repairs and maintenance that do not improve or extend the life of the respective asset are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives. Certain assets and their related accumulated depreciation amounts are adjusted for asset retirements and disposals with the resulting gain or loss included in cost of operations in the consolidated statements of income. For further discussion of the Company’s property, plant and equipment refer to Note 4, Property, Plant and Equipment . Construction in-progress represents cumulative construction costs, including the costs incurred for the purchase of major equipment and engineering costs and capitalized interest. Once the project achieves commercial operation, the Company reclassifies the amounts recorded in construction in progress to facilities and equipment. Development costs include project development costs, which are expensed in the preliminary stages of a project and capitalized when the project is deemed to be commercially viable. Commercial viability is determined by one or a series of actions including, among others, Board of Director approval pursuant to a formal project plan that subjects the Company to significant future obligations that can only be discharged by the use of a Company asset. When a project is available for operations, capitalized interest and capitalized project development costs are reclassified to property, plant and equipment and depreciated on a straight-line basis over the estimated useful life of the project’s related assets. Capitalized costs are charged to expense if a project is abandoned or management otherwise determines the costs to be unrecoverable. |
Asset Impairments | Asset Impairments Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. Such reviews are performed in accordance with ASC 360, Property, Plant and Equipment . An impairment loss is indicated if the total future estimated undiscounted cash flows expected from an asset are less than its carrying amount. An impairment charge is measured as the excess of an asset’s carrying amount over its fair value with the difference recorded in operating costs and expenses in the consolidated statements of income. Fair values are determined by a variety of valuation methods, including appraisals, sales prices of similar assets and present value techniques. For further discussion of the Company’s long-lived asset impairments, refer to Note 9, Asset Impairments . Investments accounted for by the equity method are reviewed for impairment in accordance with ASC 323, Investments-Equity Method and Joint Ventures , which requires that a loss in value of an investment that is an other-than-temporary decline should be recognized. The Company identifies and measures losses in the value of equity method investments based upon a comparison of fair value to carrying value. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs related to the long-term debt are presented as a direct deduction from the carrying amount of the related debt. Debt issuance costs related to the senior secured revolving credit facility line of credit are recorded as a non-current asset on the consolidated balance sheet and are amortized over the term of the credit facility. |
Intangible Assets | Intangible AssetsIntangible assets represent contractual rights held by the Company. The Company recognizes specifically identifiable intangible assets including power purchase agreements, leasehold rights, emission allowances, RECs and development rights when specific rights and contracts are acquired. These intangible assets are amortized primarily on a straight-line basis. |
Income Taxes | Income Taxes The Company is classified as a partnership for federal and state income tax purposes. Therefore, federal and most state income taxes are assessed at the partner level. The franchise tax imposed by the state of Texas, however, is being assessed at the level of certain project subsidiaries of the Company, and therefore reflected as an income tax expense of the Company. For the year ended December 31, 2022, the Company recorded a deferred tax expense of $2 million and associated deferred tax liability of $4 million with respect to future years. At December 31, 2021, the Company recorded a deferred tax expense and associated deferred tax liability of $2 million with respect to future years. |
Revenue Recognition and Contract Amortization | 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. 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. 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. 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. The contingent lease revenue recognized in the years ended December 31, 2022, 2021 and 2020 was $850 million, $741 million and $589 million, respectively. See Note 15, Leases, for additional information related to the Company’s PPAs accounted for as leases. 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. 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. |
Derivatives Financial Instruments | Derivative Financial Instruments The Company accounts for derivative financial instruments under ASC 815, Derivatives and Hedging , or ASC 815, which requires the Company to record all derivatives on the balance sheet at fair value unless they qualify for a NPNS exception. Changes in the fair value of non-hedge derivatives are immediately recognized in earnings. Changes in the fair value of derivatives accounted for as hedges, if elected for hedge accounting, are either: • Recognized in earnings as an offset to the changes in the fair value of the related hedged assets, liabilities and firm commitments; or • Deferred and recorded as a component of accumulated OCI until the hedged transactions occur and are recognized in earnings. The Company’s primary derivative instruments are interest rate instruments used to mitigate variability in earnings due to fluctuations in interest rates and power sale contracts used to mitigate variability in earnings due to fluctuations in market prices. Certain derivative contracts contain provisions providing the counterparties a lien on specific assets as collateral. On an ongoing basis, the Company qualitatively assesses the effectiveness of its derivatives that are designated as hedges for accounting purposes in order to determine that each derivative continues to be highly effective in offsetting changes in cash flows of hedged items. If necessary, the Company will perform an analysis to measure the statistical correlation between the derivative and the associated hedged item to determine the effectiveness of such a contract designated as a hedge. The Company will discontinue hedge accounting if it is determined that the hedge is no longer effective. In this case, the gain or loss previously deferred in accumulated OCI would be frozen until the underlying hedged item is delivered unless the transaction being hedged is no longer probable of occurring in which case the amount in accumulated OCI would be immediately reclassified into earnings. If the derivative instrument is terminated, the effective portion of this derivative deferred in accumulated OCI will be frozen until the underlying hedged item is delivered. Revenues and expenses on contracts that qualify for the NPNS exception are recognized when the underlying physical transaction is delivered. While these contracts are considered derivative financial instruments under ASC 815, they are not recorded at fair value, but on an accrual basis of accounting. If it is determined that a transaction designated as NPNS no longer meets the scope exception, the fair value of the related contract is recorded on the balance sheet and immediately recognized through earnings. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable — trade and derivative instruments, which are concentrated within entities engaged in the energy and financial industries. These industry concentrations may impact the overall exposure to credit risk, either positively or negatively, in that the customers may be similarly affected by changes in economic, industry or other conditions. In addition, many of the Company’s projects have only one customer. See Item 1A, Risk Factors, Risks Related to the Company’s Business, for a discussion on the Company’s dependence on major customers . |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying amount of cash and cash equivalents, restricted cash, accounts receivable — trade, accounts payable — trade, account payable — affiliates and accrued expenses and other current liabilities approximate fair value because of the short-term maturity of these instruments. |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations, or AROs, are accounted for in accordance with ASC 410-20, Asset Retirement Obligations, or ASC 410-20. Retirement obligations associated with long-lived assets included within the scope of ASC 410-20 are those for which a legal obligation exists under enacted laws, statutes, and written or oral contracts, including obligations arising under the doctrine of promissory estoppel, and for which the timing and/or method of settlement may be conditional on a future event. ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. |
Guarantees | Guarantees The Company enters into various contracts that include indemnification and guarantee provisions as a routine part of its business activities. Examples of these contracts include operation and maintenance agreements, service agreements, commercial sales arrangements and other types of contractual agreements with vendors and other third parties as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters as well as breaches of representations, warranties and covenants set forth in these agreements. Because many of the guarantees and indemnities the Company issues to third parties and affiliates do not limit the amount or duration of its obligations to perform under them, there exists a risk that the Company may have obligations in excess of the amounts agreed upon in the contracts mentioned above. For those guarantees and indemnities that do not limit the liability exposure, the Company may not be able to estimate what the liability would be, until a claim is made for payment or performance, due to the contingent nature of these contracts. |
Investments Accounted for by the Equity Method | Investments Accounted for by the Equity Method The Company has investments in various energy projects accounted for by the equity method, several of which are VIEs, where the Company is not a primary beneficiary, as described in Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities. The equity method of accounting is applied to these investments in affiliates because the ownership structure prevents the Company from exercising a controlling influence over the operating and financial policies of the projects. Under this method, equity in pre-tax income or losses of the investments is reflected as equity in earnings of unconsolidated affiliates. Distributions from equity method investments that represent earnings on the Company’s investment are included within cash flows from operating activities and distributions from equity method investments that represent a return of the Company’s investment are included within cash flows from investing activities. |
Sale-Leaseback Arrangements | Sale-Leaseback Arrangements The Company is party to sale-leaseback arrangements that provide for the sale of certain assets to a third-party and simultaneous leaseback to the Company. In accordance with ASC 840-40, Sale-Leaseback Transactions , if the seller-lessee retains, through the leaseback, substantially all of the benefits and risks incident to the ownership of the property sold, the sale-leaseback transaction is accounted for as a financing arrangement. An example of this type of continuing involvement would include an option to repurchase the assets or the buyer-lessor having the option to sell the assets back to the Company. This provision is included in most of the Company’s sale-leaseback arrangements. As such, the Company accounts for these arrangements as financings. Under the financing method, the Company does not recognize as income any of the sale proceeds received from the lessor that contractually constitutes payment to acquire the assets subject to these arrangements. Instead, the sale proceeds received are accounted for as financing obligations and leaseback payments made by the Company are allocated between interest expense and a reduction to the financing obligation. Interest on the financing obligation is calculated using the Company’s incremental borrowing rate at the inception of the arrangement on the outstanding financing obligation. Judgment is required to determine the appropriate borrowing rate for the arrangement and in determining any gain or loss on the transaction that would be recorded either at the end of or over the lease term. |
Asset Acquisitions | Asset Acquisitions The Company accounts for its acquisitions in accordance with ASC 805, Business Combinations, or ASC 805. For third-party acquisitions, ASC 805 requires an acquirer to recognize and measure in its financial statements the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at fair value at the acquisition date. No goodwill is recognized and excess purchase price or negative goodwill are allocated to the acquired assets on a relative fair value basis. For acquisitions that relate to entities under common control, the difference between the cash paid and historical value of the entities’ equity is recorded as a distribution/contribution from/to CEG with the offset to CEG’s contributed capital balance. |
Tax Equity Arrangements | Tax Equity Arrangements Certain portions of the Company’s redeemable noncontrolling interest in subsidiaries and noncontrolling interest represent third-party interests in the net assets under certain tax equity arrangements, which are consolidated by the Company, that have been entered into to finance the cost of solar and wind facilities eligible for certain tax credits. The Company has determined that the provisions in the contractual agreements of these structures represent substantive profit sharing arrangements. Further, the Company has determined that the appropriate methodology for calculating the redeemable noncontrolling interest and noncontrolling interest that reflects the substantive profit sharing arrangements is a balance sheet approach utilizing the hypothetical liquidation at book value, or HLBV, method. Under the HLBV method, the amounts reported as redeemable noncontrolling interest and noncontrolling interest represent the amounts the investors to the tax equity arrangements would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements, assuming the net assets of the funding structures were liquidated at their recorded amounts determined in accordance with GAAP. The investors’ interests in the results of operations of the funding structures are determined as the difference in redeemable noncontrolling interest and noncontrolling interest at the start and end of each reporting period, after taking into account any capital transactions between the structures and the funds’ investors. The calculations utilized to apply the HLBV method include estimated calculations of taxable income or losses for each reporting period. In addition, in certain circumstances, the Company and its partners in the tax equity arrangements agree that certain tax benefits are to be utilized outside of the tax equity arrangements, which may result in differences in the amount an investor would hypothetically receive at the initial balance sheet date calculated strictly in accordance with related contractual agreements. These differences are recognized in the consolidated statement of income using a systematic and rational method over the period during which the investor is expected to achieve its target return. |
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. In recording transactions and balances resulting from business operations, the Company uses estimates based on the best information available. Estimates are used for such items as plant depreciable lives, uncollectible accounts, AROs, acquisition accounting, fair value of financial instruments and legal costs incurred in connection with recorded loss contingencies, among others. In addition, estimates are used to test long-lived assets for impairment and to determine the fair value of impaired assets. As better information becomes available or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. |
Reclassification | Reclassification Certain prior year amounts have been reclassified for comparative purposes. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-4, 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. In December 2022, the FASB issued ASU No. 2022-6, Deferral of the Sunset Date of Reference Rate Reform , to extend the end of the transition period to December 31, 2024. As of December 31, 2022, the Company intends to apply the amendments to all its eligible contract modifications, where applicable, no later than June 30, 2023, the LIBOR cessation date. Additionally, the Company has not elected any optional expedients provided in the standard. |
Nature of Business (Tables)
Nature of Business (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Organization Chart | The diagram below represents a summarized structure of the Company as of December 31, 2022: |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2022 2021 (In millions) Cash and cash equivalents $ 657 $ 179 Restricted cash 339 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 996 $ 654 |
Restrictions on 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: December 31, 2022 2021 (In millions) Cash and cash equivalents $ 657 $ 179 Restricted cash 339 475 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 996 $ 654 |
Disaggregation of Revenue | The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2022, along with the reportable segment for each category: Year ended December 31, 2022 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 6 $ 956 $ 48 $ 1,010 Capacity revenue (a) 435 2 18 455 Other revenues — 71 11 82 Contract amortization (24) (151) — (175) Mark-to-market for economic hedges — (182) — (182) Total operating revenues 417 696 77 1,190 Less: Contract amortization 24 151 — 175 Less: Mark-to-market for economic hedges — 182 — 182 Less: Lease revenue (441) (809) (1) (1,251) Total revenue from contracts with customers $ — $ 220 $ 76 $ 296 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2021, along with the reportable segment for each category: Year ended December 31, 2021 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 9 $ 784 $ 122 $ 915 Capacity revenue (a) 455 2 53 510 Other revenues — 60 32 92 Contract amortization (23) (118) (3) (144) Mark-to-market for economic hedges — (87) — (87) Total operating revenues 441 641 204 1,286 Less: Contract amortization 23 118 3 144 Less: Mark-to-market for economic hedges — 87 — 87 Less: Lease revenue (464) (716) (2) (1,182) Total revenue from contracts with customers $ — $ 130 $ 205 $ 335 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. The following tables represent the Company’s disaggregation of revenue from contracts with customers for the year ended December 31, 2020, along with the reportable segment for each category: Year ended December 31, 2020 (In millions) Conventional Generation Renewables Thermal Total Energy revenue (a) $ 10 $ 609 $ 101 $ 720 Capacity revenue (a) 451 — 63 514 Other revenues — 21 32 53 Contract amortization (24) (61) (3) (88) Total operating revenues 437 569 193 1,199 Less: Contract amortization 24 61 3 88 Less: Lease revenue (461) (554) (2) (1,017) Total revenue from contracts with customers $ — $ 76 $ 194 $ 270 (a) See Note 15 , Leases, for the amounts of energy and capacity revenue that relate to leases and are accounted for under ASC 842. |
Schedule of Contract Balances | The following table reflects the net amount of contract assets and liabilities included on the Company’s consolidated balance sheets as of December 31, 2022 and December 31, 2021: (In millions) December 31, 2022 December 31, 2021 Accounts receivable, net - Contracts with customers $ 37 $ 44 Accounts receivable, net - Leases 116 100 Total accounts receivable, net $ 153 $ 144 |
Schedule of Change in Asset Retirement Obligation | (In millions) Balance as of December 31, 2021 $ 146 Liabilities incurred 6 Liabilities settled (5) Accretion expense 10 Balance as of December 31, 2022 $ 157 |
Redeemable Noncontrolling Interest | The following table reflects the changes in the Company’s redeemable noncontrolling interest balance for the year ended December 31, 2022: (In millions) Balance at December 31, 2021 $ — Cash distributions to redeemable noncontrolling interests (4) Comprehensive income attributable to redeemable noncontrolling interests 11 Balance at December 31, 2022 $ 7 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 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 October 3, 2022: (In millions) Waiawa Other current and non-current assets $ 7 Property, plant and equipment 118 Total assets acquired 125 Long-term debt (a) 102 Other current and non-current liabilities 24 Total liabilities assumed 126 Net liabilities assumed $ (1) (a) Includes a $22 million construction loan, $26 million sponsor equity bridge loan and $55 million tax equity bridge loan, offset by $1 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date, along with $2 million in associated fees, utilizing $12 million from the cash equity investor, as well as $16 million of the Company's purchase price, which was contributed back to the Company by CEG. Also at acquisition date, the tax equity investor contributed $17 million into escrow, which is included in restricted cash on the Company's consolidated balance sheet at December 31, 2022. The tax equity investor will contribute an additional $41 million when the project reaches substantial completion, which will be utilized, along with the $17 million in escrow, to repay the $55 million tax equity bridge loan. The project is expected to reach substantial completion in the first half of 2023. 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, along with $2 million in associated fees, 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. 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. On December 7, 2022, when the project reached substantial completion, the tax equity investor contributed an additional $42 million and CEG contributed an additional $11 million, which was utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan, to fund $7 million in construction completion reserves and to pay $4 million in associated fees. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 29, 2021: (In millions) Black Rock Current assets (a) $ 36 Property, plant and equipment 178 Right-of-use-assets 7 Other non-current assets 2 Total assets acquired 223 Long-term debt (b) 186 Long-term lease liabilities 7 Other current and non-current liabilities 11 Total liabilities assumed (c) 204 Net assets acquired $ 19 (a) Includes $35 million reserved for project completion costs included in restricted cash on the Company’s balance sheet at acquisition date, which is included within the $133 million contributed by CEG described above. (b) Repaid at acquisition date utilizing $56 million contributed by the tax equity investor, $36 million from the cash equity investor and $61 million contributed by CEG, all recorded as contributions in noncontrolling interest, as well as $37 million of the Company’s acquisition price. Of the $190 million contributed, $186 million was utilized to pay down the acquired debt and $4 million was utilized to pay associated fees. The $61 million contributed by CEG and the Company’s initial acquisition price of $37 million are also included within the $133 million contributed by CEG described above. (c) Total liabilities assumed excludes amounts due to CEG as of the acquisition date for the remaining turbines that became operational in January 2022. The liabilities totaled $83 million, of which $59 million was received from the tax equity and cash equity investors and was held in escrow accounts as of the acquisition date. The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 17, 2021: (In millions) Mesquite Sky Current assets (a) $ 46 Property, plant and equipment 377 Right-of use assets 45 Other non-current assets 7 Total assets acquired 475 Long-term debt (b) 355 Long-term lease liabilities 45 Derivative liabilities 43 Other current and non-current liabilities 39 Total liabilities assumed (c) 482 Net liabilities assumed $ (7) (a) Includes $44 million reserved for project completion costs included in restricted cash on the Company’s balance sheet at acquisition date, which is included within the $52 million contributed by CEG described above. (b) Repaid at acquisition date utilizing $241 million contributed by the tax equity investor and $107 million contributed by the cash equity investor, both recorded as contributions in noncontrolling interest, as well as the Company’s $61 million acquisition price. Of the $409 million contributed, $355 million was utilized to pay down the acquired debt and $1 million was utilized to pay associated fees. The remaining $53 million was distributed to CEG for the acquisition. The net of the Company’s $61 million acquisition price and the distribution to CEG of $53 million are included within the $52 million contributed by CEG described above. (c) Total liabilities assumed excludes amounts due to CEG as of the acquisition date of $6 million, of which $5 million was received from the tax equity and cash equity investors and was held in escrow accounts as of the acquisition date. The following is a summary of assets and liabilities transferred in connection with the acquisition as of December 1, 2021: (In millions) Utah Solar Portfolio Current assets $ 20 Property, plant and equipment 258 Intangible assets for power purchase agreement 302 Other intangible assets 4 Right-of use assets 163 Total assets acquired 747 Long-term lease liabilities 163 Other current and non-current liabilities 24 Total liabilities assumed 187 Equity method investment removed (230) Net assets acquired $ 330 (In millions) Mt. Storm Current assets $ 3 Property, plant and equipment 108 Other non-current assets 2 Total assets acquired 113 Derivative instruments 9 Other current and non-current liabilities 4 Total liabilities assumed 13 Net assets acquired $ 100 The following is a summary of assets and liabilities obtained in connection with the acquisition as of February 3, 2021: (In millions) Agua Caliente Restricted cash $ 91 Property, plant and equipment 154 Intangible asset for power purchase agreement 1,022 Other current assets 9 Total assets acquired 1,276 Long-term debt 716 Other current and non-current liabilities 5 Total liabilities assumed 721 Noncontrolling interest 273 Equity method investment removed (80) Net assets acquired less noncontrolling interest $ 202 The following is a summary of assets and liabilities transferred in connection with the acquisition as of January 12, 2021: (In millions) Rattlesnake Current assets $ 8 Property, plant and equipment 200 Right-of-use assets 12 Total assets acquired 220 Long-term debt (a) 176 Long-term lease liabilities 12 Other current and non-current liabilities 18 Total liabilities assumed 206 Net assets acquired $ 14 (a) Repaid at acquisition date utilizing $107 million contributed by tax equity investor and $103 million contributed by CEG, both recorded as contributions in noncontrolling interest. Of the $210 million contributed, $176 million was utilized to pay down the acquired debt, $29 million was utilized to fund project reserve accounts and $5 million was utilized to pay associated fees. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The Company’s major classes of property, plant, and equipment were as follows: December 31, 2022 December 31, 2021 Depreciable Lives (In millions) Facilities and equipment $ 9,992 $ 9,747 3 - 40 Years Land and improvements 293 320 Construction in progress (a) 160 84 Total property, plant and equipment 10,445 10,151 Accumulated depreciation (3,024) (2,501) Net property, plant and equipment $ 7,421 $ 7,650 (a) As of December 31, 2022 and 2021, construction in progress includes $17 million and $15 million, respectively, of capital expenditures that relate to prepaid long-term service agreements in the Conventional segment. |
Investments Accounted for by _2
Investments Accounted for by the Equity Method and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The Company’s maximum exposure to loss as of December 31, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below: Name Economic Interest Investment Balance (In millions) Avenal 50% $ 9 Desert Sunlight 25% 235 Elkhorn Ridge 66.7% 22 GenConn (a) 50% 82 San Juan Mesa 75% 16 $ 364 (a) GenConn is a variable interest entity. The following tables present summarized financial information for the Company’s equity method investments: Year Ended December 31, 2022 2021 2020 Income Statement Data: (In millions) GenConn Operating revenues $ 50 $ 55 $ 60 Operating income 16 22 26 Net income 7 13 17 Desert Sunlight Operating revenues 203 205 209 Operating income 137 146 142 Net income 114 112 88 Other (a) (b) Operating revenues 52 49 299 Operating income 18 16 138 Net income 15 13 60 As of December 31, 2022 2021 Balance Sheet Data: (In millions) GenConn Current assets $ 39 $ 38 Non-current assets 312 328 Current liabilities 16 15 Non-current liabilities 170 178 Desert Sunlight Current assets 79 131 Non-current assets 1,175 1,228 Current liabilities 61 64 Non-current liabilities 824 904 Other (a) Current assets 22 26 Non-current assets 157 172 Current liabilities 12 24 Non-current liabilities 91 98 (a) Includes Avenal, Elkhorn Ridge, San Juan Mesa, DGPV Holdco 1, DGPV Holdco 2 and DGPV Holdco 3. DGPV Holdco 1, DGPV Holdco 2 and DGPV Holdco 3 were consolidated by the Company during 2020 and are therefore only included in the summarized income statement data for the year ended December 31, 2020. (b) On February 3, 2021, the Company acquired an additional 35% equity interest in Agua Caliente and removed its equity investment in Agua Caliente and, on December 1, 2021, the Company acquired the remaining 50% equity investment in the Utah Solar Portfolio and removed its equity investment in the Utah Solar Portfolio. As a result, both Agua Caliente and the Utah Solar Portfolio are excluded from the summarized income statement data for the years ended December 31, 2022 and December 31, 2021. |
Schedule of Variable Interest Entities | Summarized financial information for the Company’s consolidated VIEs consisted of the following as of December 31, 2022: (In millions) Alta TE Holdco Buckthorn Holdings, 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 $ 51 $ 2 $ 75 $ 13 $ 134 $ 49 Property, plant and equipment 306 194 493 123 828 358 Intangible assets 200 — 14 2 — — Total assets 557 196 582 138 962 407 Current and non-current liabilities 38 11 66 53 364 134 Total liabilities 38 11 66 53 364 134 Noncontrolling interest 39 29 13 59 487 230 Net assets less noncontrolling interests $ 480 $ 156 $ 503 $ 26 $ 111 $ 43 (a) DGPV Funds is comprised of Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC, which are all tax equity funds. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC, Mililani TE Holdco LLC and Waiawa TE Holdco LLC, which are consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is a consolidated VIE. (In millions) Oahu Solar LLC Pinnacle Repowering TE Holdco Rattlesnake TE Holdco LLC Rosie TargetCo LLC Wildorado TE Holdco Other (a) Other current and non-current assets $ 39 $ 9 $ 13 $ 43 $ 20 $ 15 Property, plant and equipment 164 102 185 238 209 154 Intangible assets — 16 — — — 1 Total assets 203 127 198 281 229 170 Current and non-current liabilities 22 5 17 101 18 69 Total liabilities 22 5 17 101 18 69 Noncontrolling interest 26 43 91 133 110 70 Net assets less noncontrolling interests $ 155 $ 79 $ 90 $ 47 $ 101 $ 31 (a) Other is comprised of Elbow Creek TE Holdco and Spring Canyon TE Holdco projects. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | 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 December 31, 2022 As of December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Liabilities: Long-term debt, including current portion — affiliate $ 2 $ 2 $ 1 $ 1 Long-term debt, including current portion — external (a) 6,874 6,288 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 Hierarchy of Long-term Debt | The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 Level 2 Level 3 Level 2 Level 3 (In millions) Long-term debt, including current portion $ 1,836 $ 4,454 $ 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 December 31, 2022 As of December 31, 2021 Fair Value Fair Value (a) Fair Value Fair Value (a) (In millions) Level 2 (b) Level 3 Level 2 Level 3 Derivative assets Interest rate contracts $ 89 $ — $ 6 $ — Other financial instruments (c) — 17 — 25 Total assets $ 89 $ 17 $ 6 $ 25 Derivative liabilities Commodity contracts $ — $ 353 $ — $ 179 Interest rate contracts — — 63 — Total liabilities $ — $ 353 $ 63 $ 179 (a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of December 31, 2022 and December 31, 2021. (b) The Company’s interest rate swaps are measured at fair value using an income approach, which use readily observable inputs, such as forward interest rates (e.g., LIBOR and SOFR) and contractual terms to estimate fair value. (c) Includes 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: Year ended December 31, 2022 2021 (In millions) Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Beginning balance $ (154) $ (15) Settlements 61 60 Contracts acquired — (52) Additions due to loss of NPNS exception (22) — Total losses for the period included in earnings (221) (147) Ending balance $ (336) $ (154) Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, $ (221) $ (147) |
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 December 31, 2022: December 31, 2022 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Commodity Contracts $ — $ (353) Discounted Cash Flow Forward Market Price (per MWh) $ 21.25 $ 100.66 $ 41.09 Other Financial Instruments 17 — Discounted Cash Flow Forecast annual generation levels of certain DG solar facilities 58,539 MWh 117,078 MWh 112,897 MWh The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of December 31, 2022: Significant Observable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Power Sell Increase/(Decrease) Lower/(Higher) Forecast Generation Levels Sell Increase/(Decrease) Higher/(Lower) |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding | The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of December 31, 2022 and 2021: Total Volume December 31, 2022 December 31, 2021 Commodity Units (In millions) Natural Gas MMBtu — 2 Power MWh (18) (17) Interest Dollars $ 1,084 $ 1,326 |
Schedule of 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 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (In millions) Derivatives Designated as Cash Flow Hedges: Interest rate contracts current $ 7 $ — $ — $ 5 Interest rate contracts long-term 18 2 — 3 Total Derivatives Designated as Cash Flow Hedges $ 25 $ 2 $ — $ 8 Derivatives Not Designated as Cash Flow Hedges: Interest rate contracts current $ 19 $ — $ — $ 17 Interest rate contracts long-term 45 4 — 38 Commodity contracts current — — 50 24 Commodity contracts long-term — — 303 155 Total Derivatives Not Designated as Cash Flow Hedges $ 64 $ 4 $ 353 $ 234 Total Derivatives $ 89 $ 6 $ 353 $ 242 |
Schedule of Offsetting of Derivatives | The following tables summarize the offsetting of derivatives by counterparty: Gross Amounts Not Offset in the Statement of Financial Position As of December 31, 2022 Gross Amounts of Recognized Assets/Liabilities Derivative Instruments Net Amount Commodity contracts (In millions) Derivative liabilities $ (353) $ — $ (353) Total commodity contracts $ (353) $ — $ (353) Interest rate contracts Derivative assets $ 89 $ — $ 89 Total interest rate contracts $ 89 $ — $ 89 Total derivative instruments $ (264) $ — $ (264) 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) |
Schedule of Cash Flow Hedges Included in 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: Year ended December 31, 2022 2021 2020 (In millions) Accumulated OCI (OCL) beginning balance $ (13) $ (35) $ (37) Reclassified from accumulated OCI/OCL to income due to realization of previously deferred amounts 5 11 11 Capistrano Wind Portfolio Acquisition 7 — — Mark-to-market of cash flow hedge accounting contracts 28 11 (9) Accumulated OCI (OCL) ending balance $ 27 $ (13) $ (35) Accumulated OCI (OCL) attributable to noncontrolling interests 6 — (2) Accumulated OCI (OCL) attributable to Clearway Energy LLC $ 21 $ (13) $ (33) Income expected to be realized from OCI during the next 12 months $ 5 |
Derivative Instruments, Gain (Loss) | Year ended December 31, 2022 2021 2020 (In millions) Interest Rate Contracts (Interest expense) $ 100 $ 53 $ (38) Commodity Contracts (Operating revenue) (a) (174) (83) (4) (a) Relates to long-term commodity contracts at Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky. During the year ended December 31, 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. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Components of the Company's intangible Assets Subject to Amortization | The following tables summarize the components of intangible assets subject to amortization: Year ended December 31, 2022 PPAs Leasehold Rights Emission Allowances Other Total (In millions) January 1, 2022 $ 2,985 $ 86 $ 17 $ 16 $ 3,104 Acquisitions (a) 336 — — — 336 Other — — — 2 2 December 31, 2022 3,321 86 17 18 3,442 Less accumulated amortization (833) (34) (4) (6) (877) Net carrying amount $ 2,488 $ 52 $ 13 $ 12 $ 2,565 ( a) The weighted average life of acquired intangibles was 10 years for PPAs. Year ended December 31, 2021 PPAs Leasehold Rights Customer Relationships Customer Contracts Emission Other Total (In millions) January 1, 2021 $ 1,661 $ 86 $ 66 $ 15 $ 17 $ 12 $ 1,857 Acquisitions (a) 1,324 — — — — 4 1,328 Reclassified to held for sale (b) — — (66) (15) — — (81) December 31, 2021 2,985 86 — — 17 16 3,104 Less accumulated amortization (566) (30) — — (3) (6) (605) Net carrying amount $ 2,419 $ 56 $ — $ — $ 14 $ 10 $ 2,499 (a) The weighted average life of acquired intangibles was 17 years for PPAs, 15 years for RECs and 15 years for favorable leases. (b) Thermal Business intangible assets were classified as held for sale at December 31, 2021, and the Thermal Business was subsequently sold on May 1, 2022. |
Schedule Future Amortization Expense for Intangibles | The Company estimates the future amortization expense for its intangibles for the next five years as follows: (In millions) 2023 $ 182 2024 180 2025 180 2026 180 2027 180 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company’s borrowings, including short-term and long-term portions consisted of the following: December 31, 2022 December 31, 2021 Interest rate % (a)(b) Letters of Credit Outstanding at December 31, 2022 (In millions, except rates) Intercompany Note with Clearway Energy, Inc. $ 2 $ 1 4.550 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 1.750 $ 125 Bridge Loan, due 2022 — 335 S+1.250 Non-recourse project-level debt: Agua Caliente Solar LLC, due 2037 649 684 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 709 756 5.696-7.015 23 Alta Wind Realty Investments LLC, due 2031 22 24 7.000 — Borrego, due 2024 and 2038 51 54 Various — Buckthorn Solar, due 2025 119 123 L+1.750 21 Capistrano Wind Portfolio, due 2029 and 2031 156 — L+2.000 36 Carlsbad Energy Holdings LLC, due 2027 115 136 L+1.750 63 Carlsbad Energy Holdings LLC, due 2038 407 407 4.120 — Carlsbad Holdco, LLC, due 2038 197 205 4.210 5 CVSR, due 2037 627 652 2.339-3.775 — CVSR Holdco Notes, due 2037 160 169 4.680 12 DG-CS Master Borrower LLC, due 2040 413 441 3.510 30 El Segundo Energy Center, due 2023 — 193 L+1.875-2.500 80 Kawailoa Solar Portfolio LLC, due 2026 — 78 L+1.375 — Laredo Ridge, due 2028 — 72 L+2.125 — Marsh Landing, due 2023 19 84 L+2.375 45 Mililani I, due 2027 47 — L+1.500 6 NIMH Solar, due 2024 163 176 L+2.000 10 Oahu Solar Holdings LLC, due 2026 83 86 L+1.375 9 Rosie Class B LLC, due 2027 76 78 L+1.750 17 Tapestry Wind LLC, due 2031 — 85 L+1.375 — Utah Solar Holdings, due 2036 257 273 3.590 9 Viento Funding II, LLC, due 2023 and 2029 (d) 184 29 S+1.475 26 Waiawa, due 2023 and 2028 97 — L+1.000-1.250 10 Walnut Creek, due 2023 19 74 L+1.875 74 WCEP Holdings, LLC, due 2023 26 30 L+3.000 — Other 137 151 Various 200 Subtotal non-recourse project-level debt 4,745 5,073 Total debt 6,872 7,779 Less current maturities (324) (773) Less net debt issuance costs (61) (71) Add premiums (e) 4 4 Total long-term debt $ 6,491 $ 6,939 (a) As of December 31, 2022, L+ equals 3 month LIBOR plus x%, except Marsh Landing, due 2023, Waiawa, due 2023, 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 |
Summary of Swaps Related to the Company's Project Level Debt | The following table summarizes the swaps, some of which are forward starting as indicated, related to the Company’s project level debt as of December 31, 2022: % of Principal Fixed Interest Rate Floating Interest Rate Notional Amount at December 31, 2022 (In millions) Effective Date Maturity Date Avra Valley 88 % 2.333 % 3-Month LIBOR $ 32 November 30, 2012 November 30, 2030 Alta Wind Asset Management 100 % 2.470 % 3-Month LIBOR 12 May 22, 2013 May 15, 2031 Borrego 100 % 0.476 % 3-Month LIBOR 6 June 30, 2020 December 31, 2024 Buckthorn Solar 81 % Various 3-Month LIBOR 96 February 28, 2018 December 31, 2041 Carlsbad Energy Holdings 100 % Various 3-Month LIBOR 115 Various September 30, 2027 Capistrano Wind Portfolio 95 % Various 3-Month LIBOR 148 Various Various Kansas South 75 % 2.368 % 6-Month LIBOR 14 June 28, 2013 December 31, 2030 Marsh Landing 100 % Various 3-Month LIBOR 19 June 28, 2013 June 30, 2023 Mililani I 94 % 2.041 % 3-Month LIBOR 44 September 30, 2022 September 30, 2042 NIMH Solar 100 % Various 3-Month LIBOR 163 September 30, 2020 Various Oahu Solar 96 % Various 3-Month LIBOR 80 November 30, 2019 October 31, 2040 Rosie Class B 95 % 1.446 % 3-Month LIBOR 73 December 31, 2020 Various South Trent 90 % 3.847 % 3-Month LIBOR 27 June 14, 2019 June 30, 2028 Viento Funding II 90 % 2.530 % 3-Month SOFR 165 Various Various Waiawa 50 % 2.088 % 3-Month LIBOR 48 December 31, 2022 December 31, 2042 Walnut Creek 94 % 3.543 % 3-Month LIBOR 18 June 28, 2013 May 31, 2023 WCEP Holdings 92 % 4.003 % 3-Month LIBOR 24 June 28, 2013 May 31, 2023 Total $ 1,084 |
Schedule of Annual Payments Based on the Maturities of NRG Yield's Debt | Annual Maturities Annual payments based on the maturities of the Company’s debt, for the years ending after December 31, 2022, are as follows: (In millions) 2023 (a) $ 421 2024 410 2025 382 2026 361 2027 399 Thereafter 4,899 Total $ 6,872 (a) At December 31, 2022, amount includes $97 million recorded in long-term debt on the Company’s consolidated balance sheet that is due in 2023 and is either being funded through long-term equity contributions or is converting to long-term debt. |
Members' Equity (Tables)
Members' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Members' Equity [Abstract] | |
Schedule of Dividends Paid | The following table lists the distributions paid on the Company’s Class A, Class B, Class C and Class D units during the year ended December 31, 2022: Fourth Quarter 2022 Third Quarter 2022 Second Quarter 2022 First Quarter 2022 Distributions per Class A and Class B units $ 0.3672 $ 0.3604 $ 0.3536 $ 0.3468 Distributions per Class C and Class D units 0.3672 0.3604 0.3536 0.3468 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | The Company generated more than 10% of its revenues from the following customers for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Customer Conventional Renewables Conventional Renewables Conventional Renewables SCE 17% 17% 17% 16% 18% 16% PG&E 10% 15% 10% 13% 10% 8% |
Schedule of Segment Reporting Information, by Segment | Year ended December 31, 2022 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 417 $ 696 $ 77 $ — $ 1,190 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 89 298 50 (2) 435 Depreciation, amortization and accretion 131 381 — — 512 Impairment losses — 16 — — 16 General and administrative — — 2 36 38 Transaction and integration costs — — — 7 7 Development costs — — 2 — 2 Total operating costs and expenses 220 695 54 41 1,010 Gain on sale of business — — — 1,292 1,292 Operating income 197 1 23 1,251 1,472 Equity in earnings of unconsolidated affiliates 3 26 — — 29 Other income, net 1 6 — 10 17 Loss on debt extinguishment — (2) — — (2) Interest expense (40) (87) (6) (99) (232) Income (loss) before income taxes 161 (56) 17 1,162 1,284 Income tax expense — 2 — — 2 Net Income (Loss) 161 (58) 17 1,162 1,282 Net Income Attributable to Clearway Energy LLC $ 161 $ 49 $ 17 $ 1,161 $ 1,388 Balance Sheet Equity investments in affiliates $ 82 $ 282 $ — $ — $ 364 Capital expenditures (b)(c) 11 33 11 1 56 Total Assets $ 2,251 $ 9,515 $ — $ 546 $ 12,312 (a) Includes eliminations (b) Includes accruals (c) Thermal capital expenditures, including accruals, prior to the sale of the Thermal Business on May 1, 2022. Year ended December 31, 2021 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 441 $ 641 $ 204 $ — $ 1,286 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 90 229 134 (2) 451 Depreciation, amortization and accretion 132 354 23 — 509 Impairment losses — 6 — — 6 General and administrative — — 4 34 38 Transaction and integration costs — — — 7 7 Development costs — — 4 2 6 Operating income (loss) 219 52 39 (41) 269 Equity in earnings of unconsolidated affiliates 6 26 — — 32 Other income, net — 2 1 — 3 Loss on debt extinguishment — (1) — (52) (53) Interest expense (53) (142) (18) (99) (312) Income (loss) before income taxes 172 (63) 22 (192) (61) Income tax expense — 2 — — 2 Net Income (Loss) 172 (65) 22 (192) (63) Net Income (Loss) Attributable to Clearway Energy LLC $ 172 $ 109 $ 22 $ (193) $ 110 Balance Sheet Equity investments in affiliates $ 86 $ 295 $ — $ — $ 381 Capital expenditures (b) 12 77 29 1 119 Total Assets $ 2,442 $ 9,603 $ 631 $ 42 $ 12,718 (a) Includes eliminations (b) Includes accruals Year ended December 31, 2020 (In millions) Conventional Generation Renewables Thermal Corporate (a) Total Operating revenues $ 437 $ 569 $ 193 $ — $ 1,199 Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 90 147 131 (2) 366 Depreciation, amortization and accretion 132 264 32 — 428 Impairment losses — 24 — — 24 General and administrative — — 3 30 33 Transaction and integration costs — — — 9 9 Development costs — — 5 — 5 Operating income (loss) 215 134 22 (37) 334 Equity in earnings (losses) of unconsolidated affiliates 8 (1) — — 7 Impairment loss on investment — (8) — — (8) Gain on sale of unconsolidated affiliates — — — 49 49 Other income, net 1 4 — (1) 4 Loss on debt extinguishment — (21) — (3) (24) Interest expense (84) (216) (19) (95) (414) Net Income (Loss) 140 (108) 3 (87) (52) Net Income (Loss) Attributable to Clearway Energy LLC $ 140 $ 4 $ 3 $ (86) $ 61 (a) Includes eliminations |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Information and Expense | Lease expense for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: (In millions) December 31, 2022 December 31, 2021 December 31, 2020 Operating lease cost - Fixed $ 36 $ 27 $ 19 Operating lease cost - Variable 11 15 9 Total lease cost $ 47 $ 42 $ 28 Operating lease information as of December 31, 2022 and 2021 was as follows: (In millions, except term and rate) December 31, 2022 December 31, 2021 Right-of-use assets - operating leases, net $ 527 $ 550 Short-term lease liability - operating leases (a) $ 6 $ 8 Long-term lease liability - operating leases 548 561 Total lease liabilities $ 554 $ 569 Weighted average remaining lease term (in years) 27 28 Weighted average discount rate 4.1 % 3.5 % Cash paid for operating leases $ 28 $ 26 (a) Short-term lease liability balances are included within the accrued expenses and other current liabilities line item of the consolidated balance sheets as of December 31, 2022 and 2021. |
Maturities of Operating Lease Liabilities | Minimum future rental payments of operating lease liabilities as of December 31, 2022 are as follows: (In millions) 2023 $ 28 2024 30 2025 30 2026 31 2027 32 Thereafter 831 Total lease payments 982 Less imputed interest (428) Total lease liability - operating leases $ 554 |
Energy and Capacity Revenue | The following amounts of energy and capacity revenue are related to the Company’s operating leases: Conventional Generation Renewables Thermal Total December 31, 2022 (In millions) Energy revenue $ 6 $ 809 $ 1 $ 816 Capacity revenue 435 — — 435 Operating revenue $ 441 $ 809 $ 1 $ 1,251 Conventional Generation Renewables Thermal Total December 31, 2021 (In millions) Energy revenue $ 9 $ 716 $ 2 $ 727 Capacity revenue 455 — — 455 Operating revenue $ 464 $ 716 $ 2 $ 1,182 Conventional Generation Renewables Thermal Total December 31, 2020 (In millions) Energy revenue $ 10 $ 554 $ 2 $ 566 Capacity revenue 451 — — 451 Operating revenue $ 461 $ 554 $ 2 $ 1,017 |
Minimum Future Rent Payments Under the Operating Leases | Minimum future rent payments for the remaining periods related to the Conventional segment operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 261 2024 106 2025 107 2026 108 2027 109 Thereafter 1,281 Total lease payments $ 1,972 |
Property, Plant, and Equipment Net | Property, plant and equipment, net related to the Company’s operating leases were as follows: (In millions) December 31, 2022 December 31, 2021 Property, plant and equipment $ 8,630 $ 8,981 Accumulated depreciation (2,855) (2,827) Net property, plant and equipment $ 5,775 $ 6,154 |
Nature of Business - Narrative
Nature of Business - Narrative (Details) - MW | 12 Months Ended | ||
Sep. 12, 2022 | Dec. 31, 2022 | May 01, 2022 | |
Nature of Business | |||
Power generation capacity, megawatts | 8,000 | ||
Discontinued Operations, Disposed of by Sale | Thermal | |||
Nature of Business | |||
Percentage of assets ownership sold | 100% | ||
Conventional Generation, Utility-Scale Solar, Distributed Solar, and Wind | |||
Nature of Business | |||
Power generation capacity, megawatts | 5,500 | ||
Generational Facilities and District Energy Systems | |||
Nature of Business | |||
Power generation capacity, megawatts | 2,500 | ||
Clearway Energy LLC | |||
Nature of Business | |||
Ownership percentage | 57.88% | ||
Clearway Energy LLC | GIP | |||
Nature of Business | |||
Ownership percentage | 57.65% | ||
Voting interest | 45.07% | ||
Clearway Energy LLC | Shareholders | |||
Nature of Business | |||
Ownership percentage | 42.35% | ||
Voting interest | 54.93% | ||
CEG | Clearway Energy LLC | |||
Nature of Business | |||
Ownership percentage | 42.12% | ||
Global Infrastructure Partners | TotalEnergies | |||
Nature of Business | |||
Ownership percentage | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Aug. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 01, 2022 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 339 | $ 475 | |||
Deferred tax expense | 2 | 2 | |||
Deferred tax liability | 4 | 2 | |||
Contingent rental income | 850 | 741 | $ 589 | ||
Discontinued Operations, Disposed of by Sale | Kawailoa Solar Partnership LLC | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of assets ownership sold | 100% | ||||
Removal of restricted cash | $ 7 | ||||
Discontinued Operations, Disposed of by Sale | Thermal | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of assets ownership sold | 100% | ||||
Prepaid Expenses and Other Current Assets | State and Local Jurisdiction | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Refundable tax credit receivable | 27 | ||||
PPA, refundable tax credit, aggregate amount utilized | 26 | ||||
Prepaid Expenses and Other Current Assets | State and Local Jurisdiction | Oahu Solar Partnership | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Refundable tax credit receivable | 27 | ||||
Prepaid Expenses and Other Current Assets | State and Local Jurisdiction | Kawailoa Solar Partnership LLC | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Refundable tax credit receivable | 22 | ||||
Project Level Subsidiaries | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Other cash and cash equivalents | 121 | $ 146 | |||
Long-Term Debt, Current | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 55 | ||||
Debt Service Obligations | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 105 | ||||
Cash Distribution | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 70 | ||||
Operating Funds | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 109 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 657 | $ 179 | ||
Restricted cash | 339 | 475 | ||
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 996 | $ 654 | $ 465 | $ 414 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Disaggregated Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Operating revenues | $ 1,190 | $ 1,286 | $ 1,199 |
Total operating revenues | 1,190 | 1,286 | 1,199 |
Less: Lease revenue | (850) | (741) | (589) |
Conventional | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | (6) | (9) | (10) |
Conventional | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | (435) | (455) | (451) |
Renewables | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | (809) | (716) | (554) |
Renewables | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | 0 | 0 | 0 |
Thermal | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | (1) | (2) | (2) |
Thermal | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Less: Lease revenue | 0 | 0 | 0 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 1,190 | 1,286 | 1,199 |
Contract amortization | (175) | (144) | (88) |
Mark-to-market for economic hedges | (182) | (87) | |
Total operating revenues | 1,190 | 1,286 | 1,199 |
Less: Contract amortization | 175 | 144 | 88 |
Less: Mark-to-market for economic hedges | 182 | 87 | |
Less: Lease revenue | (1,251) | (1,182) | (1,017) |
Total revenue from contracts with customers | 296 | 335 | 270 |
Operating Segments | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 1,010 | 915 | 720 |
Total operating revenues | 1,010 | 915 | 720 |
Operating Segments | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 455 | 510 | 514 |
Total operating revenues | 455 | 510 | 514 |
Operating Segments | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 82 | 92 | 53 |
Total operating revenues | 82 | 92 | 53 |
Operating Segments | Conventional | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 417 | 441 | 437 |
Contract amortization | (24) | (23) | (24) |
Mark-to-market for economic hedges | 0 | 0 | |
Total operating revenues | 417 | 441 | 437 |
Less: Contract amortization | 24 | 23 | 24 |
Less: Mark-to-market for economic hedges | 0 | 0 | |
Less: Lease revenue | (441) | (464) | (461) |
Total revenue from contracts with customers | 0 | 0 | 0 |
Operating Segments | Conventional | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 6 | 9 | 10 |
Total operating revenues | 6 | 9 | 10 |
Operating Segments | Conventional | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 435 | 455 | 451 |
Total operating revenues | 435 | 455 | 451 |
Operating Segments | Conventional | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Total operating revenues | 0 | 0 | 0 |
Operating Segments | Renewables | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 696 | 641 | 569 |
Contract amortization | (151) | (118) | (61) |
Mark-to-market for economic hedges | (182) | (87) | |
Total operating revenues | 696 | 641 | 569 |
Less: Contract amortization | 151 | 118 | 61 |
Less: Mark-to-market for economic hedges | 182 | 87 | |
Less: Lease revenue | (809) | (716) | (554) |
Total revenue from contracts with customers | 220 | 130 | 76 |
Operating Segments | Renewables | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 956 | 784 | 609 |
Total operating revenues | 956 | 784 | 609 |
Operating Segments | Renewables | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 2 | 2 | 0 |
Total operating revenues | 2 | 2 | 0 |
Operating Segments | Renewables | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 71 | 60 | 21 |
Total operating revenues | 71 | 60 | 21 |
Operating Segments | Thermal | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 77 | 204 | 193 |
Contract amortization | 0 | (3) | (3) |
Mark-to-market for economic hedges | 0 | 0 | |
Total operating revenues | 77 | 204 | 193 |
Less: Contract amortization | 0 | 3 | 3 |
Less: Mark-to-market for economic hedges | 0 | 0 | |
Less: Lease revenue | (1) | (2) | (2) |
Total revenue from contracts with customers | 76 | 205 | 194 |
Operating Segments | Thermal | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 48 | 122 | 101 |
Total operating revenues | 48 | 122 | 101 |
Operating Segments | Thermal | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 18 | 53 | 63 |
Total operating revenues | 18 | 53 | 63 |
Operating Segments | Thermal | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 11 | 32 | 32 |
Total operating revenues | $ 11 | $ 32 | $ 32 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, net | $ 153 | $ 144 |
Customer Contracts | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, net | 37 | 44 |
Lease Agreements | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, net | $ 116 | $ 100 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Balance as of December 31, 2021 | $ 146 |
Liabilities incurred | 6 |
Liabilities settled | (5) |
Accretion expense | 10 |
Balance as of December 31, 2022 | $ 157 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies -Redeemable Noncontrolling Interests (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at December 31, 2021 | $ 0 |
Cash distributions to redeemable noncontrolling interests | (4) |
Comprehensive income attributable to redeemable noncontrolling interests | 11 |
Balance at December 31, 2022 | $ 7 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Feb. 13, 2023 USD ($) MW | Dec. 07, 2022 USD ($) | Oct. 03, 2022 USD ($) MW | Aug. 22, 2022 USD ($) project MW | Aug. 01, 2022 USD ($) | May 01, 2022 USD ($) | Mar. 25, 2022 USD ($) MW | Dec. 29, 2021 USD ($) MW | Dec. 17, 2021 USD ($) MW | Dec. 01, 2021 USD ($) farm MW | Apr. 23, 2021 USD ($) MW | Feb. 03, 2021 USD ($) MW | Jan. 12, 2021 USD ($) MW | Feb. 28, 2022 USD ($) | Dec. 31, 2022 USD ($) MW | Dec. 31, 2020 USD ($) | Dec. 31, 2021 | Feb. 02, 2021 | |
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 8,000 | |||||||||||||||||
Payments to fund project reserve accounts | $ 29 | |||||||||||||||||
Payments for other fees | 5 | |||||||||||||||||
Mesquite Star | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Removed related noncontrolling interest balance | $ (361) | |||||||||||||||||
Mesquite Star | Noncontrolling Interest | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Removed related noncontrolling interest balance | $ (346) | |||||||||||||||||
CEG | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | $ 61 | 103 | ||||||||||||||||
Tax Equity Investors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | $ 107 | |||||||||||||||||
Kawailoa Solar Partnership LLC | Discontinued Operations, Disposed of by Sale | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of assets ownership sold | 100% | |||||||||||||||||
Proceeds from sale of business | $ 9 | |||||||||||||||||
Removal of noncontrolling interest | $ 69 | |||||||||||||||||
Thermal | Discontinued Operations, Disposed of by Sale | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of assets ownership sold | 100% | |||||||||||||||||
Proceeds from sale of business | $ 1,460 | |||||||||||||||||
Transaction expenses | 18 | |||||||||||||||||
Gain on sale of assets | $ 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 | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership interest | 49% | 49% | ||||||||||||||||
Kawailoa Solar Project | Kawailoa Solar Partnership LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership interest | 51% | 51% | ||||||||||||||||
Daggett 3 Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Lighthouse Renewable Holdco LLC | Subsequent Event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 300 | |||||||||||||||||
Payments for asset acquisition | $ 21 | |||||||||||||||||
Daggett 3 Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Third Party Investor | Lighthouse Renewable Holdco LLC | Subsequent Event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for asset acquisition | $ 129 | |||||||||||||||||
Waiawa Drop Down | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Asset acquisition consideration | $ 20 | |||||||||||||||||
Net assets acquired less noncontrolling interest | (1) | |||||||||||||||||
Long-term debt | 102 | |||||||||||||||||
Expected contributions upon substantial completion | 41 | |||||||||||||||||
Waiawa Drop Down | Construction Loans | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Long-term debt | 22 | |||||||||||||||||
Waiawa Drop Down | Tax Equity Investors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | $ 17 | |||||||||||||||||
Waiawa Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Lighthouse Renewable Holdco LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 36 | |||||||||||||||||
Payments for asset acquisition | $ 20 | |||||||||||||||||
Power purchase agreement period (in years) | 20 years | |||||||||||||||||
Waiawa Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Lighthouse Renewable Holdco LLC | Subsequent Event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power purchase agreement period (in years) | 15 years | |||||||||||||||||
Waiawa Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Third Party Investor | Lighthouse Renewable Holdco LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for asset acquisition | $ 12 | |||||||||||||||||
Capistrano Wind Portfolio Drop Down | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 413 | |||||||||||||||||
Power purchase agreement period (in years) | 9 years | |||||||||||||||||
Asset acquisition consideration | $ 255 | |||||||||||||||||
Asset acquisition, purchase price adjustments, amount | 16 | |||||||||||||||||
Net assets acquired less noncontrolling interest | 250 | |||||||||||||||||
Long-term debt | 162 | |||||||||||||||||
Capistrano Wind Portfolio Drop Down | Clearway Energy LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Development fees | 10 | |||||||||||||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for asset acquisition, net of purchase price adjustments | 239 | |||||||||||||||||
Net assets acquired less noncontrolling interest | 250 | |||||||||||||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | CEG | Noncontrolling Interest | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net assets acquired less noncontrolling interest | $ 4 | |||||||||||||||||
Capistrano Wind Portfolio Drop Down | Wind Power Generation and Storage | Clearway Energy LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of projects acquired | project | 5 | |||||||||||||||||
Mililani I Drop Down | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Asset acquisition consideration | $ 22 | |||||||||||||||||
Net assets acquired less noncontrolling interest | (8) | |||||||||||||||||
Long-term debt | 100 | |||||||||||||||||
Mililani I Drop Down | Tax Equity Bridge Loan | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Long-term debt | $ 60 | 60 | ||||||||||||||||
Mililani I Drop Down | Construction Loans | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Long-term debt | 16 | |||||||||||||||||
Mililani I Drop Down | CEG | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for other fees | 4 | 2 | ||||||||||||||||
Removed related noncontrolling interest balance | 11 | |||||||||||||||||
Mililani I Drop Down | Tax Equity Investors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments to fund project reserve accounts | $ 16 | 15 | ||||||||||||||||
Proceeds from noncontrolling interests | $ 18 | $ 18 | ||||||||||||||||
Mililani I Drop Down | Alternative Energy | Lighthouse Renewable Holdco LLC | Lighthouse Renewable Holdco LLC | ||||||||||||||||||
Business 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 | Alternative Energy | Lighthouse Renewable Holdco LLC | Third Party Investor | Lighthouse Renewable Holdco LLC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for asset acquisition | $ 14 | |||||||||||||||||
Black Rock Drop Down | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 115 | |||||||||||||||||
Power purchase agreement period (in years) | 15 years | |||||||||||||||||
Asset acquisition consideration | $ 60 | |||||||||||||||||
Net assets acquired less noncontrolling interest | 19 | |||||||||||||||||
Payments to fund project reserve accounts | 37 | |||||||||||||||||
Long-term debt | 186 | |||||||||||||||||
Proceeds from noncontrolling interests | 190 | |||||||||||||||||
Payments for other fees | 4 | |||||||||||||||||
Payments to acquire productive assets | 37 | $ 23 | ||||||||||||||||
Black Rock Drop Down | CEG | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | 61 | |||||||||||||||||
Black Rock Drop Down | CEG | Noncontrolling Interest | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Contributions from CEG, non-cash | $ 133 | |||||||||||||||||
Black Rock Drop Down | Tax Equity Investors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | $ 56 | |||||||||||||||||
Mesquite Sky Drop Down | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power purchase agreement period (in years) | 12 years | |||||||||||||||||
Asset acquisition consideration | $ 61 | |||||||||||||||||
Net assets acquired less noncontrolling interest | (7) | |||||||||||||||||
Payments to fund project reserve accounts | 61 | |||||||||||||||||
Long-term debt | 355 | |||||||||||||||||
Proceeds from noncontrolling interests | 409 | |||||||||||||||||
Payments for other fees | 1 | |||||||||||||||||
Mesquite Sky Drop Down | CEG | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net assets acquired less noncontrolling interest | 53 | |||||||||||||||||
Mesquite Sky Drop Down | CEG | Noncontrolling Interest | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Contributions from CEG, non-cash | $ 52 | |||||||||||||||||
Mesquite Sky Drop Down | Tax Equity Investors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from noncontrolling interests | $ 241 | |||||||||||||||||
Mesquite Sky Drop Down | Wind Power Generation | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 340 | |||||||||||||||||
Utah Solar Portfolio | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 530 | |||||||||||||||||
Power purchase agreement period (in years) | 20 years | |||||||||||||||||
Asset acquisition consideration | $ 335 | |||||||||||||||||
Asset acquisition, purchase price adjustments, amount | 5 | |||||||||||||||||
Payments for asset acquisition, net of purchase price adjustments | 330 | |||||||||||||||||
Net assets acquired less noncontrolling interest | $ 330 | |||||||||||||||||
Percentage equity interests acquired | 50% | |||||||||||||||||
Number of utility-scale solar farms | farm | 7 | |||||||||||||||||
Cash acquired from acquisition | $ 8 | |||||||||||||||||
Asset acquisition, net cash outlfow | $ 322 | |||||||||||||||||
Utah Solar Portfolio | PacifiCorp | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power purchase remaining agreement period | 15 years | |||||||||||||||||
Utah Solar Portfolio | Clearway Energy, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership interest | 100% | |||||||||||||||||
Mount Storm Wind | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net assets acquired less noncontrolling interest | $ 100 | |||||||||||||||||
Payments to acquire productive assets | $ 100 | |||||||||||||||||
Percentage equity interests acquired | 100% | |||||||||||||||||
Power purchase remaining agreement period | 10 years | |||||||||||||||||
Gross consideration for asset acquisition | $ 96 | |||||||||||||||||
Asset acquisition, consideration transferred, working capital and purchase price adjustments | $ 4 | |||||||||||||||||
Mount Storm Wind | Wind Power Generation | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 264 | |||||||||||||||||
Agua Caliente | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 290 | |||||||||||||||||
Power purchase agreement period (in years) | 25 years | |||||||||||||||||
Asset acquisition consideration | $ 202 | |||||||||||||||||
Net assets acquired less noncontrolling interest | 202 | |||||||||||||||||
Long-term debt | $ 5 | |||||||||||||||||
Percentage equity interests acquired | 35% | |||||||||||||||||
Power purchase remaining agreement period | 17 years | |||||||||||||||||
Asset acquisition, cash and cash equivalents and restricted Cash | $ 91 | |||||||||||||||||
Payments for asset acquisition, net cash outflow | $ 111 | |||||||||||||||||
Agua Caliente | Clearway Energy, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership interest | 51% | |||||||||||||||||
Equity interest (percent) | 16% | |||||||||||||||||
Agua Caliente | Third Party Investor | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Third party ownership interest (percent) | 49% | |||||||||||||||||
Rattlesnake | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power purchase agreement period (in years) | 20 years | |||||||||||||||||
Asset acquisition consideration | $ 132 | $ 132 | ||||||||||||||||
Net assets acquired less noncontrolling interest | 14 | |||||||||||||||||
Long-term debt | 176 | |||||||||||||||||
Proceeds from noncontrolling interests | $ 210 | |||||||||||||||||
Rattlesnake | Wind Power Generation | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Power generation capacity, megawatts | MW | 160 | |||||||||||||||||
Power generation capacity, deliverable, megawatts | MW | 144 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Assets and Liabilities Transferred (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||||
Dec. 07, 2022 | Oct. 03, 2022 | Aug. 22, 2022 | Mar. 25, 2022 | Dec. 29, 2021 | Dec. 17, 2021 | Dec. 01, 2021 | Apr. 23, 2021 | Feb. 03, 2021 | Jan. 12, 2021 | Dec. 31, 2022 | Mar. 10, 2022 | |
Business Acquisition [Line Items] | ||||||||||||
Payments to fund project reserve accounts | $ 29 | |||||||||||
Payments for other fees | 5 | |||||||||||
Tax Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 107 | |||||||||||
CEG | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | $ 61 | 103 | ||||||||||
Waiawa Drop Down | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment | $ 118 | |||||||||||
Other current assets | 7 | |||||||||||
Total assets acquired | 125 | |||||||||||
Long-term debt | 102 | |||||||||||
Other current and non-current liabilities | 24 | |||||||||||
Total liabilities assumed | 126 | |||||||||||
Net assets acquired less noncontrolling interest | (1) | |||||||||||
Unamortized debt issuance costs | $ 1 | |||||||||||
Expected contributions upon substantial completion | 41 | |||||||||||
Asset acquisition consideration | 20 | |||||||||||
Waiawa Drop Down | Construction Loans | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term debt | 22 | |||||||||||
Waiawa Drop Down | Sponsor Equity Bridge Loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term debt | 26 | |||||||||||
Waiawa Drop Down | Tax Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 17 | |||||||||||
Capistrano Wind Portfolio Drop Down | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restricted cash | $ 4 | |||||||||||
Property, plant and equipment | 147 | |||||||||||
Intangible assets for power purchase agreements | 237 | |||||||||||
Other current assets | 39 | |||||||||||
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 assets acquired less noncontrolling interest | 250 | |||||||||||
Cash and cash equivalents | 12 | |||||||||||
Asset acquisition consideration | $ 255 | |||||||||||
Mililani I Drop Down | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment | $ 118 | |||||||||||
Other current assets | 2 | |||||||||||
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 assets acquired less noncontrolling interest | (8) | |||||||||||
Unamortized debt issuance costs | 3 | |||||||||||
Asset acquisition consideration | 22 | |||||||||||
Mililani I Drop Down | Construction Loans | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term debt | 16 | |||||||||||
Mililani I Drop Down | Sponsor Equity Bridge Loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term debt | 27 | |||||||||||
Mililani I Drop Down | Tax Equity Bridge Loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term debt | $ 60 | 60 | ||||||||||
Mililani I Drop Down | Tax Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to fund project reserve accounts | $ 16 | 15 | ||||||||||
Proceeds from noncontrolling interests | 18 | 18 | ||||||||||
Mililani I Drop Down | Tax Equity Investors | Sponsor Equity Bridge Loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Repayment of debt, acquired in asset acquisition | 14 | |||||||||||
Mililani I Drop Down | CEG | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments for other fees | $ 4 | $ 2 | ||||||||||
Black Rock Drop Down | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Current assets | 36 | |||||||||||
Restricted cash | 35 | |||||||||||
Property, plant and equipment | 178 | |||||||||||
Right-of-use assets | 7 | |||||||||||
Other non-current assets | 2 | |||||||||||
Total assets acquired | 223 | |||||||||||
Long-term debt | 186 | |||||||||||
Long-term lease liabilities | 7 | |||||||||||
Other current and non-current liabilities | 11 | |||||||||||
Total liabilities assumed | 204 | |||||||||||
Net assets acquired less noncontrolling interest | 19 | |||||||||||
Repayment of debt, acquired in asset acquisition | 186 | |||||||||||
Payments to fund project reserve accounts | 37 | |||||||||||
Proceeds from noncontrolling interests | 190 | |||||||||||
Payments for other fees | 4 | |||||||||||
Asset acquisition consideration | 60 | |||||||||||
Black Rock Drop Down | Tax Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 56 | |||||||||||
Black Rock Drop Down | Cash Equity Investor | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 36 | |||||||||||
Black Rock Drop Down | CEG | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total liabilities assumed | 83 | |||||||||||
Proceeds from noncontrolling interests | 61 | |||||||||||
Black Rock Drop Down | CEG | Noncontrolling Interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contributions from CEG, non-cash | $ 133 | |||||||||||
Black Rock Drop Down | Tax Equity and Cash Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Escrow amount | 59 | |||||||||||
Mesquite Sky Drop Down | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Current assets | $ 46 | |||||||||||
Restricted cash | 44 | |||||||||||
Property, plant and equipment | 377 | |||||||||||
Right-of-use assets | 45 | |||||||||||
Other non-current assets | 7 | |||||||||||
Total assets acquired | 475 | |||||||||||
Long-term debt | 355 | |||||||||||
Long-term lease liabilities | 45 | |||||||||||
Derivative instruments | 43 | |||||||||||
Other current and non-current liabilities | 39 | |||||||||||
Total liabilities assumed | 482 | |||||||||||
Net assets acquired less noncontrolling interest | (7) | |||||||||||
Repayment of debt, acquired in asset acquisition | 355 | |||||||||||
Payments to fund project reserve accounts | 61 | |||||||||||
Proceeds from noncontrolling interests | 409 | |||||||||||
Payments for other fees | 1 | |||||||||||
Asset acquisition consideration | 61 | |||||||||||
Mesquite Sky Drop Down | Tax Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 241 | |||||||||||
Mesquite Sky Drop Down | Cash Equity Investor | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from noncontrolling interests | 107 | |||||||||||
Mesquite Sky Drop Down | CEG | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total liabilities assumed | $ 6 | |||||||||||
Net assets acquired less noncontrolling interest | $ 53 | |||||||||||
Mesquite Sky Drop Down | CEG | Noncontrolling Interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contributions from CEG, non-cash | 52 | |||||||||||
Mesquite Sky Drop Down | Tax Equity and Cash Equity Investors | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Escrow amount | $ 5 | |||||||||||
Utah Solar Portfolio | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Current assets | $ 20 | |||||||||||
Property, plant and equipment | 258 | |||||||||||
Intangible assets for power purchase agreements | 302 | |||||||||||
Right-of-use assets | 163 | |||||||||||
Other non-current assets | 4 | |||||||||||
Total assets acquired | 747 | |||||||||||
Other current and non-current liabilities | 24 | |||||||||||
Long-term lease liabilities | 163 | |||||||||||
Total liabilities assumed | 187 | |||||||||||
Equity method investment removed | (230) | |||||||||||
Net assets acquired less noncontrolling interest | 330 | |||||||||||
Asset acquisition consideration | 335 | |||||||||||
Mount Storm Wind | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Current assets | $ 3 | |||||||||||
Property, plant and equipment | 108 | |||||||||||
Other non-current assets | 2 | |||||||||||
Total assets acquired | 113 | |||||||||||
Other current and non-current liabilities | 4 | |||||||||||
Derivative instruments | 9 | |||||||||||
Total liabilities assumed | 13 | |||||||||||
Net assets acquired less noncontrolling interest | $ 100 | |||||||||||
Agua Caliente | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restricted cash | $ 91 | |||||||||||
Property, plant and equipment | 154 | |||||||||||
Other current assets | 9 | |||||||||||
Other non-current assets | 1,022 | |||||||||||
Total assets acquired | 1,276 | |||||||||||
Long-term debt | 5 | |||||||||||
Other current and non-current liabilities | 716 | |||||||||||
Total liabilities assumed | 721 | |||||||||||
Noncontrolling interest | 273 | |||||||||||
Equity method investment removed | (80) | |||||||||||
Net assets acquired less noncontrolling interest | 202 | |||||||||||
Asset acquisition consideration | $ 202 | |||||||||||
Rattlesnake | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Current assets | 8 | |||||||||||
Property, plant and equipment | 200 | |||||||||||
Right-of-use assets | 12 | |||||||||||
Total assets acquired | 220 | |||||||||||
Long-term debt | 176 | |||||||||||
Long-term lease liabilities | 12 | |||||||||||
Other current and non-current liabilities | 18 | |||||||||||
Total liabilities assumed | 206 | |||||||||||
Net assets acquired less noncontrolling interest | 14 | |||||||||||
Repayment of debt, acquired in asset acquisition | 176 | |||||||||||
Proceeds from noncontrolling interests | 210 | |||||||||||
Asset acquisition consideration | $ 132 | $ 132 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 10,445 | $ 10,151 | |
Accumulated depreciation | (3,024) | (2,501) | |
Net property, plant and equipment | 7,421 | 7,650 | |
Prepaid long-term service agreement | 17 | 15 | |
Depreciation expense | 502 | 499 | $ 420 |
Repowering Partnership LLC | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 34 | ||
Facilities and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 9,992 | 9,747 | |
Facilities and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Facilities and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 293 | 320 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 160 | $ 84 |
Investments Accounted for by _3
Investments Accounted for by the Equity Method and Variable Interest Entities - Maximum Exposure to Loss Limited to Equity method investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments in affiliates | $ 364 | $ 381 |
Avenal | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50% | |
Equity investments in affiliates | $ 9 | |
Desert Sunlight | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 25% | |
Equity investments in affiliates | $ 235 | |
Elkhorn Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 66.70% | |
Equity investments in affiliates | $ 22 | |
Gen Conn | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50% | |
Equity investments in affiliates | $ 82 | |
San Juan Mesa | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 75% | |
Equity investments in affiliates | $ 16 |
Investments Accounted for by _4
Investments Accounted for by the Equity Method and Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Aug. 22, 2022 | Aug. 01, 2022 | Jun. 30, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Retained earnings, undistributed earnings from equity method investees | $ 19 | $ 14 | ||||
Payments to acquire equity method investments | 0 | $ 0 | $ 11 | |||
Asset acquisition, long-term debt | $ 6,872 | |||||
Discontinued Operations, Disposed of by Sale | Kawailoa Solar Partnership LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of assets ownership sold | 100% | |||||
Capistrano Wind Portfolio Drop Down | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net assets acquired less noncontrolling interest | $ 250 | |||||
Kawailoa Solar Partnership LLC | Kawailoa Solar Project | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 51% | 51% | ||||
Third Party Investor | Kawailoa Solar Project | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 49% | 49% | ||||
Desert Sunlight | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 285 | |||||
Asset acquisition, consideration transferred, working capital and purchase price adjustments | $ 181 | |||||
Asset Acquisition Carrying Value Basis Difference | $ 129 | |||||
Asset acquisition, long-term debt | $ 325 | |||||
Economic Interest | 25% |
Investments Accounted for by _5
Investments Accounted for by the Equity Method and Variable Interest Entities - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2021 | Feb. 03, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | $ 1,190 | $ 1,286 | $ 1,199 | ||
Operating Income | 1,472 | 269 | 334 | ||
Net income | 1,282 | (63) | (52) | ||
Assets, Current | 1,276 | 1,531 | |||
Current liabilities | 602 | 1,635 | |||
Non-current liabilities | 7,543 | 7,866 | |||
GenConn | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | 50 | 55 | 60 | ||
Operating Income | 16 | 22 | 26 | ||
Net income | 7 | 13 | 17 | ||
Assets, Current | 39 | 38 | |||
Non-current assets | 312 | 328 | |||
Current liabilities | 16 | 15 | |||
Non-current liabilities | 170 | 178 | |||
Desert Sunlight | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | 203 | 205 | 209 | ||
Operating Income | 137 | 146 | 142 | ||
Net income | 114 | 112 | 88 | ||
Assets, Current | 79 | 131 | |||
Non-current assets | 1,175 | 1,228 | |||
Current liabilities | 61 | 64 | |||
Non-current liabilities | 824 | 904 | |||
Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | 52 | 49 | 299 | ||
Operating Income | 18 | 16 | 138 | ||
Net income | 15 | 13 | $ 60 | ||
Assets, Current | 22 | 26 | |||
Non-current assets | 157 | 172 | |||
Current liabilities | 12 | 24 | |||
Non-current liabilities | $ 91 | $ 98 | |||
Agua Caliente | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Additional equity method investment interests acquired | 35% | ||||
Utah Solar Portfolio | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Additional equity method investment interests acquired | 50% |
Investments Accounted for by _6
Investments Accounted for by the Equity Method and Variable Interest Entities - VIEs that are Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | $ 3,615 | $ 3,537 |
Property, plant and equipment, net | 7,421 | 7,650 |
Intangible assets | 2,565 | 2,499 |
Total assets | 12,312 | 12,718 |
Total Liabilities | 8,145 | $ 9,501 |
Alta TE Holdco | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 51 | |
Property, plant and equipment, net | 306 | |
Intangible assets | 200 | |
Total assets | 557 | |
Total Liabilities | 38 | |
Noncontrolling Interest | 39 | |
Net assets less noncontrolling interests | 480 | |
Buckthorn Holdings, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 2 | |
Property, plant and equipment, net | 194 | |
Intangible assets | 0 | |
Total assets | 196 | |
Total Liabilities | 11 | |
Noncontrolling Interest | 29 | |
Net assets less noncontrolling interests | 156 | |
DGPV Holdco 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 75 | |
Property, plant and equipment, net | 493 | |
Intangible assets | 14 | |
Total assets | 582 | |
Total Liabilities | 66 | |
Noncontrolling Interest | 13 | |
Net assets less noncontrolling interests | 503 | |
Langford TE Partnership LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 13 | |
Property, plant and equipment, net | 123 | |
Intangible assets | 2 | |
Total assets | 138 | |
Total Liabilities | 53 | |
Noncontrolling Interest | 59 | |
Net assets less noncontrolling interests | 26 | |
Lighthouse Renewable Holdco LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 134 | |
Property, plant and equipment, net | 828 | |
Intangible assets | 0 | |
Total assets | 962 | |
Total Liabilities | 364 | |
Noncontrolling Interest | 487 | |
Net assets less noncontrolling interests | 111 | |
Lighthouse Renewable Holdco 2 LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 49 | |
Property, plant and equipment, net | 358 | |
Intangible assets | 0 | |
Total assets | 407 | |
Total Liabilities | 134 | |
Noncontrolling Interest | 230 | |
Net assets less noncontrolling interests | 43 | |
Oahu Solar LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 39 | |
Property, plant and equipment, net | 164 | |
Intangible assets | 0 | |
Total assets | 203 | |
Total Liabilities | 22 | |
Noncontrolling Interest | 26 | |
Net assets less noncontrolling interests | 155 | |
Pinnacle Repowering TE Holdco | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 9 | |
Property, plant and equipment, net | 102 | |
Intangible assets | 16 | |
Total assets | 127 | |
Total Liabilities | 5 | |
Noncontrolling Interest | 43 | |
Net assets less noncontrolling interests | 79 | |
Rattlesnake TE Holdco LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 13 | |
Property, plant and equipment, net | 185 | |
Intangible assets | 0 | |
Total assets | 198 | |
Total Liabilities | 17 | |
Noncontrolling Interest | 91 | |
Net assets less noncontrolling interests | 90 | |
Rosie TargetCo LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 43 | |
Property, plant and equipment, net | 238 | |
Intangible assets | 0 | |
Total assets | 281 | |
Total Liabilities | 101 | |
Noncontrolling Interest | 133 | |
Net assets less noncontrolling interests | 47 | |
Wildorado TE Holdco | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 20 | |
Property, plant and equipment, net | 209 | |
Intangible assets | 0 | |
Total assets | 229 | |
Total Liabilities | 18 | |
Noncontrolling Interest | 110 | |
Net assets less noncontrolling interests | 101 | |
Other Consolidated Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Other current and non-current assets | 15 | |
Property, plant and equipment, net | 154 | |
Intangible assets | 1 | |
Total assets | 170 | |
Total Liabilities | 69 | |
Noncontrolling Interest | 70 | |
Net assets less noncontrolling interests | $ 31 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Balance Sheet Grouping and Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt — affiliate | $ 2 | $ 1 |
Long-term debt, including current portion — external | 6,874 | 7,782 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt — affiliate | 2 | 1 |
Long-term debt, including current portion — external | 6,288 | 7,997 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion — external | 1,836 | 2,160 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion — external | $ 4,454 | $ 5,838 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recurring Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 89 | $ 6 | |
Derivative liabilities | 353 | 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 December 31, | $ 33 | $ 22 | $ 2 |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Derivative instruments | Derivative instruments | |
Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 89 | $ 6 | |
Derivative liabilities | 63 | ||
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 December 31, | 100 | 53 | (38) |
Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 353 | 179 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other financial instruments | 0 | 0 | |
Assets, Fair Value Disclosure | 89 | 6 | |
Derivative liabilities | 0 | 63 | |
Recurring | Level 2 | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 89 | 6 | |
Derivative liabilities | 0 | 63 | |
Recurring | Level 2 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other financial instruments | 17 | 25 | |
Assets, Fair Value Disclosure | 17 | 25 | |
Derivative liabilities | 353 | 179 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | (154) | (15) | |
Settlements | 61 | 60 | |
Contracts acquired | 0 | (52) | |
Contracts acquired | 0 | 52 | |
Additions due to loss of NPNS exception | (22) | 0 | |
Total losses for the period included in earnings | (221) | (147) | |
Ending balance | (336) | (154) | $ (15) |
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, | (221) | (147) | |
Recurring | Level 3 | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Level 3 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | $ 353 | $ 179 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |
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 | $ 40 |
Other Financial Instrument | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |
Percent of Other Financial Instrument Liabilities Using Level 3 Fair Value Inputs | 100% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - Recurring - Level 3 $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / MWh MWh | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other financial instruments | $ | $ 17 | $ 25 |
Energy Related Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ | $ (353) | |
Minimum | Forecast Annual Generation Levels Of Certain DG Solar Facilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other financial assets, measurement input | MWh | 58,539 | |
Minimum | Energy Related Derivative | Measurement Input, Commodity Forward Price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input | $ / MWh | 21.25 | |
Maximum | Forecast Annual Generation Levels Of Certain DG Solar Facilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other financial assets, measurement input | MWh | 117,078 | |
Maximum | Energy Related Derivative | Measurement Input, Commodity Forward Price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input | $ / MWh | 100.66 | |
Weighted Average | Forecast Annual Generation Levels Of Certain DG Solar Facilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other financial assets, measurement input | MWh | 112,897 | |
Weighted Average | Energy Related Derivative | Measurement Input, Commodity Forward Price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input | $ / MWh | 41.09 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities - Volume Buy/Sell of Company's Open Derivative Transactions (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MWh MMBTU | Dec. 31, 2021 USD ($) MWh MMBTU | |
Derivative [Line Items] | ||
Derivative notional amount | $ 1,084 | |
Natural Gas | Commodity | ||
Derivative [Line Items] | ||
Notional amount, energy measure | MMBTU | 0 | 2 |
Power | Commodity | ||
Derivative [Line Items] | ||
Notional amount, energy measure | MWh | 18 | 17 |
Interest | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 1,084 | $ 1,326 |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities - Notional Amount and FV of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 89 | $ 6 |
Derivative liabilities | 353 | 242 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 25 | 2 |
Derivative liabilities | 0 | 8 |
Designated as Hedging Instrument | Interest Rate Contract Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7 | 0 |
Derivative liabilities | 0 | 5 |
Designated as Hedging Instrument | Interest Rate Contract Non Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 18 | 2 |
Derivative liabilities | 0 | 3 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 64 | 4 |
Derivative liabilities | 353 | 234 |
Not Designated as Hedging Instrument | Interest Rate Contract Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 19 | 0 |
Derivative liabilities | 0 | 17 |
Not Designated as Hedging Instrument | Interest Rate Contract Non Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 45 | 4 |
Derivative liabilities | 0 | 38 |
Not Designated as Hedging Instrument | Commodity Contract Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 50 | 24 |
Not Designated as Hedging Instrument | Commodity Contract Long-Term | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 303 | $ 155 |
Accounting for Derivative Ins_5
Accounting for Derivative Instruments and Hedging Activities - Offsetting (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ (353) | $ (242) |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts of Recognized Assets | 89 | 6 |
Gross Amounts of Recognized Assets/Liabilities | (264) | (236) |
Derivative Instruments | 0 | 0 |
Net Amount | (264) | (236) |
Commodity contracts | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | (353) | (179) |
Derivative Instruments | 0 | 0 |
Net Amount | (353) | (179) |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts of Recognized Assets/Liabilities | (353) | (179) |
Derivative Instruments | 0 | 0 |
Net Amount | (353) | (179) |
Interest rate contracts | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | (63) | |
Derivative Instruments | 5 | |
Net Amount | (58) | |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts of Recognized Assets | 89 | 6 |
Derivative Instruments | 0 | (5) |
Net Amount | 89 | 1 |
Gross Amounts of Recognized Assets/Liabilities | 89 | (57) |
Derivative Instruments | 0 | 0 |
Net Amount | $ 89 | $ (57) |
Accounting for Derivative Ins_6
Accounting for Derivative Instruments and Hedging Activities - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Mark-to-market of cash flow hedge accounting contracts | $ 33 | $ 22 | $ 2 |
Income expected to be realized from OCI during the next 12 months | 5 | ||
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated OCI (OCL) beginning balance | (13) | (35) | (37) |
Accumulated OCI (OCL) ending balance | 27 | (13) | (35) |
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 | 5 | 11 | 11 |
Mark-to-market of cash flow hedge accounting contracts | 28 | 11 | (9) |
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 | 0 |
Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated OCI (OCL) beginning balance | 0 | (2) | |
Accumulated OCI (OCL) ending balance | 6 | 0 | (2) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated OCI (OCL) beginning balance | (13) | (33) | |
Accumulated OCI (OCL) ending balance | 21 | (13) | $ (33) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated OCI (OCL) beginning balance | $ (13) | ||
Accumulated OCI (OCL) ending balance | $ (13) |
Accounting for Derivative Ins_7
Accounting for Derivative Instruments and Hedging Activities - Impact on Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, | $ 33 | $ 22 | $ 2 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, | 100 | 53 | (38) |
Commodity Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of December 31, | $ (174) | $ (83) | $ (4) |
Intangible Assets - Components
Intangible Assets - Components Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | $ 3,442 | $ 3,104 | $ 1,857 |
Net carrying amount ending balance | 3,442 | 3,104 | 1,857 |
Less accumulated amortization | (877) | (605) | |
Ending balance | 2,565 | 2,499 | |
Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 336 | 1,328 | |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 2 | ||
Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | (81) | ||
PPAs | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 3,321 | 2,985 | 1,661 |
Net carrying amount ending balance | 3,321 | 2,985 | 1,661 |
Less accumulated amortization | (833) | (566) | |
Ending balance | 2,488 | 2,419 | |
PPAs | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 336 | 1,324 | |
PPAs | Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
PPAs | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Leasehold Rights | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 86 | 86 | 86 |
Net carrying amount ending balance | 86 | 86 | 86 |
Less accumulated amortization | (34) | (30) | |
Ending balance | 52 | 56 | |
Leasehold Rights | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | 0 | |
Leasehold Rights | Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Leasehold Rights | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Customer Relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 0 | 66 | |
Net carrying amount ending balance | 0 | 66 | |
Less accumulated amortization | 0 | ||
Ending balance | 0 | ||
Customer Relationships | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Customer Relationships | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | (66) | ||
Customer Contracts | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 0 | 15 | |
Net carrying amount ending balance | 0 | 15 | |
Less accumulated amortization | 0 | ||
Ending balance | 0 | ||
Customer Contracts | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Customer Contracts | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | (15) | ||
Emission Allowances | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 17 | 17 | 17 |
Net carrying amount ending balance | 17 | 17 | 17 |
Less accumulated amortization | (4) | (3) | |
Ending balance | 13 | 14 | |
Emission Allowances | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | 0 | |
Emission Allowances | Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Emission Allowances | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount beginning balance | 18 | 16 | 12 |
Net carrying amount ending balance | 18 | 16 | $ 12 |
Less accumulated amortization | (6) | (6) | |
Ending balance | 12 | 10 | |
Other | Acquisitions | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | 0 | 4 | |
Other | Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | $ 2 | ||
Other | Reclassified to held for sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived Intangible Assets Acquired | $ 0 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 174 | $ 143 | $ 91 |
Contract amortization expense | $ 168 | $ 135 | $ 88 |
Intangible Assets - Schedule Fu
Intangible Assets - Schedule Future Amortization Expense for Intangibles (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 182 |
2024 | 180 |
2025 | 180 |
2026 | 180 |
2027 | $ 180 |
Asset Impairments (Details)
Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Impairment losses | $ 16 | $ 6 | $ 24 | |||
Other-than-temporary impairment loss on investment | $ 0 | $ 0 | $ 8 | |||
Renewables | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Other-than-temporary impairment loss on investment | $ 8 | |||||
Property, Plant and Equipment | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Impairment losses | $ 16 | $ 6 | $ 24 |
Long-term Debt - Short and Long
Long-term Debt - Short and Long-term Borrowings (Details) - USD ($) | 12 Months Ended | |||||||
May 03, 2022 | Mar. 16, 2022 | Mar. 10, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 01, 2021 | Mar. 09, 2021 | |
Debt Instrument [Line Items] | ||||||||
Total debt | $ 6,872,000,000 | $ 7,779,000,000 | ||||||
Less current maturities | (324,000,000) | (773,000,000) | ||||||
Less net debt issuance costs | (61,000,000) | (71,000,000) | ||||||
Add premiums | 4,000,000 | 4,000,000 | ||||||
Total long-term debt | 6,491,000,000 | 6,939,000,000 | ||||||
Intercompany Note with Clearway Energy, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 2,000,000 | 1,000,000 | ||||||
Interest rate, percentage | 4.55% | |||||||
2028 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 850,000,000 | 850,000,000 | ||||||
Interest rate, percentage | 4.75% | |||||||
2031 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 925,000,000 | 925,000,000 | ||||||
Interest rate, percentage | 375% | 3.75% | ||||||
2032 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 350,000,000 | 350,000,000 | ||||||
Interest rate, percentage | 375% | 375% | ||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 1.75% | |||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 245,000,000 | ||||||
Bridge Loan, Due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount repurchased | $ 335,000,000 | |||||||
Bridge Loan, Due 2022 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 335,000,000 | $ 335,000,000 | |||||
Basis spread on variable rate | 1.25% | |||||||
Agua Caliente Solar LLC, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 649,000,000 | 684,000,000 | ||||||
Alta Wind Asset Management LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 12,000,000 | 13,000,000 | ||||||
Alta Wind Asset Management LLC, due 2031 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.625% | |||||||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 709,000,000 | 756,000,000 | ||||||
Alta Wind Realty Investments LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 22,000,000 | 24,000,000 | ||||||
Interest rate, percentage | 700% | |||||||
Borrego, due 2024 and 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 51,000,000 | 54,000,000 | ||||||
Buckthorn Solar, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 119,000,000 | 123,000,000 | ||||||
Buckthorn Solar, due 2025 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Capistrano Wind Portfolio, due 2029 and 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 156,000,000 | 0 | ||||||
Capistrano Wind Portfolio, due 2029 and 2031 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2% | |||||||
Carlsbad Energy Holdings LLC, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 115,000,000 | 136,000,000 | ||||||
Carlsbad Energy Holdings LLC, due 2027 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Carlsbad Energy Holdings LLC, due 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 407,000,000 | 407,000,000 | ||||||
Interest rate, percentage | 412% | |||||||
Carlsbad Holdco, LLC, due 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 197,000,000 | 205,000,000 | ||||||
Interest rate, percentage | 421% | |||||||
CVSR, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 627,000,000 | 652,000,000 | ||||||
CVSR Holdco Notes, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 160,000,000 | 169,000,000 | ||||||
Interest rate, percentage | 468% | |||||||
DG-CS Master Borrower LLC, due 2040 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 413,000,000 | 441,000,000 | ||||||
Interest rate, percentage | 351% | |||||||
El Segundo Energy Center, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 193,000,000 | ||||||
Kawailoa Solar Portfolio LLC, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 78,000,000 | ||||||
Kawailoa Solar Portfolio LLC, due 2026 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Laredo Ridge, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 72,000,000 | ||||||
Laredo Ridge, due 2028 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.125% | |||||||
Marsh Landing, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 19,000,000 | 84,000,000 | ||||||
Marsh Landing, due 2023 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.375% | |||||||
Mililani I, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 47,000,000 | 0 | ||||||
NIMH Solar, due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 163,000,000 | 176,000,000 | ||||||
NIMH Solar, due 2024 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2% | |||||||
Oahu Solar Holdings LLC, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 83,000,000 | 86,000,000 | ||||||
Oahu Solar Holdings LLC, due 2026 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Rosie Class B LLC, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 76,000,000 | 78,000,000 | ||||||
Rosie Class B LLC, due 2027 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Tapestry Wind LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | 85,000,000 | ||||||
Aggregate principal amount repurchased | $ 53,000,000 | |||||||
Tapestry Wind LLC, due 2031 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Utah Solar Holdings, due 2036 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 257,000,000 | 273,000,000 | ||||||
Interest rate, percentage | 3.59% | |||||||
Viento Funding II, LLC Due 2023 and 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 190,000,000 | $ 184,000,000 | 29,000,000 | |||||
Viento Funding II, LLC Due 2023 and 2029 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.10% | |||||||
Viento Funding II, LLC Due 2023 and 2029 | SOFR and Applicable Margin | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.475% | |||||||
Waiawa, due 2023 and 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 97,000,000 | 0 | ||||||
Walnut Creek, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 19,000,000 | 74,000,000 | ||||||
Walnut Creek, due 2023 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 187.50% | |||||||
WCEP Holdings, LLC, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 26,000,000 | 30,000,000 | ||||||
WCEP Holdings, LLC, due 2023 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3% | |||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 137,000,000 | 151,000,000 | ||||||
Subtotal non-recourse project-level debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | 4,745,000,000 | $ 5,073,000,000 | ||||||
Laredo Ridge, Due 2028; Tapestry Wind, LLC, Due 2031; and Viento Funding II, LLC, Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount repurchased | $ 186,000,000 | |||||||
Letter of Credit | Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 125,000,000 | |||||||
Letter of Credit | Agua Caliente Solar LLC, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 45,000,000 | |||||||
Letter of Credit | Alta Wind Asset Management LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Alta Wind I-V lease financing arrangements, due 2034 and 2035 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 23,000,000 | |||||||
Letter of Credit | Alta Wind Realty Investments LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Borrego, due 2024 and 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Buckthorn Solar, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 21,000,000 | |||||||
Letter of Credit | Capistrano Wind Portfolio, due 2029 and 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 36,000,000 | |||||||
Letter of Credit | Carlsbad Energy Holdings LLC, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 63,000,000 | |||||||
Letter of Credit | Carlsbad Energy Holdings LLC, due 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Carlsbad Holdco, LLC, due 2038 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 5,000,000 | |||||||
Letter of Credit | CVSR, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | CVSR Holdco Notes, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 12,000,000 | |||||||
Letter of Credit | DG-CS Master Borrower LLC, due 2040 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 30,000,000 | |||||||
Letter of Credit | El Segundo Energy Center, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 80,000,000 | |||||||
Letter of Credit | Kawailoa Solar Portfolio LLC, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Laredo Ridge, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Marsh Landing, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 45,000,000 | |||||||
Letter of Credit | Mililani I, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 6,000,000 | |||||||
Letter of Credit | NIMH Solar, due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 10,000,000 | |||||||
Letter of Credit | Oahu Solar Holdings LLC, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 9,000,000 | |||||||
Letter of Credit | Rosie Class B LLC, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 17,000,000 | |||||||
Letter of Credit | Tapestry Wind LLC, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Utah Solar Holdings, due 2036 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 9,000,000 | |||||||
Letter of Credit | Viento Funding II, LLC Due 2023 and 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 26,000,000 | |||||||
Letter of Credit | Waiawa, due 2023 and 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 10,000,000 | |||||||
Letter of Credit | Walnut Creek, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 74,000,000 | |||||||
Letter of Credit | WCEP Holdings, LLC, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 0 | |||||||
Letter of Credit | Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 200,000,000 | |||||||
Minimum | Agua Caliente Solar LLC, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 2.395% | |||||||
Minimum | Alta Wind I-V lease financing arrangements, due 2034 and 2035 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 5.696% | |||||||
Minimum | CVSR, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 2.339% | |||||||
Minimum | El Segundo Energy Center, due 2023 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.875% | |||||||
Minimum | Mililani I, due 2027 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Minimum | Waiawa, due 2023 and 2028 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Maximum | Agua Caliente Solar LLC, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 3.633% | |||||||
Maximum | Alta Wind I-V lease financing arrangements, due 2034 and 2035 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 7.015% | |||||||
Maximum | CVSR, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, percentage | 3.775% | |||||||
Maximum | El Segundo Energy Center, due 2023 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Maximum | Waiawa, due 2023 and 2028 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 15, 2022 USD ($) | Dec. 07, 2022 USD ($) | Oct. 03, 2022 USD ($) | Aug. 22, 2022 USD ($) | May 03, 2022 USD ($) | Mar. 25, 2022 USD ($) | Mar. 16, 2022 USD ($) | Dec. 29, 2021 USD ($) | Dec. 15, 2021 USD ($) | Mar. 10, 2021 USD ($) | Jan. 12, 2021 USD ($) | Oct. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2027 | Dec. 31, 2026 | Mar. 10, 2022 USD ($) | Nov. 30, 2021 USD ($) | Oct. 01, 2021 USD ($) | Mar. 11, 2021 USD ($) | Mar. 09, 2021 USD ($) | Feb. 03, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 6,872,000,000 | $ 6,872,000,000 | $ 7,779,000,000 | |||||||||||||||||||||
Proceeds from the revolving credit facility | 80,000,000 | 622,000,000 | $ 265,000,000 | |||||||||||||||||||||
Payments for the revolving credit facility | 325,000,000 | 377,000,000 | 265,000,000 | |||||||||||||||||||||
Loss on debt extinguishment | 2,000,000 | 53,000,000 | $ 24,000,000 | |||||||||||||||||||||
Payments for other fees | $ 5,000,000 | |||||||||||||||||||||||
Payments to fund project reserve accounts | 29,000,000 | |||||||||||||||||||||||
CEG | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Proceeds from noncontrolling interests | $ 61,000,000 | 103,000,000 | ||||||||||||||||||||||
Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Proceeds from noncontrolling interests | $ 107,000,000 | |||||||||||||||||||||||
Mililani I Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | $ 100,000,000 | |||||||||||||||||||||||
Unamortized debt issuance costs | 3,000,000 | |||||||||||||||||||||||
Mililani I Drop Down | CEG | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments for other fees | $ 4,000,000 | 2,000,000 | ||||||||||||||||||||||
Removed related noncontrolling interest balance | 11,000,000 | |||||||||||||||||||||||
Mililani I Drop Down | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments to fund project reserve accounts | $ 16,000,000 | 15,000,000 | ||||||||||||||||||||||
Proceeds from noncontrolling interests | 18,000,000 | 18,000,000 | ||||||||||||||||||||||
Waiawa Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 102,000,000 | |||||||||||||||||||||||
Unamortized debt issuance costs | $ 1,000,000 | |||||||||||||||||||||||
Expected contributions upon substantial completion | 41,000,000 | |||||||||||||||||||||||
Waiawa Drop Down | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Proceeds from noncontrolling interests | 17,000,000 | |||||||||||||||||||||||
Construction Loans | Mililani I Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount repurchased | 1,000,000 | |||||||||||||||||||||||
Long-term debt | 16,000,000 | |||||||||||||||||||||||
Long-term debt, additions | 32,000,000 | |||||||||||||||||||||||
Long-term debt, outstanding | 47,000,000 | 47,000,000 | ||||||||||||||||||||||
Construction Loans | Waiawa Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 22,000,000 | |||||||||||||||||||||||
Construction Loans | Capistrano Wind Portfolio | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Unamortized debt issuance costs | $ 2,000,000 | |||||||||||||||||||||||
Debt instrument, face amount | $ 164,000,000 | |||||||||||||||||||||||
Sponsor Equity Bridge Loan | Mililani I Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 27,000,000 | |||||||||||||||||||||||
Sponsor Equity Bridge Loan | Mililani I Drop Down | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Repayment of debt, acquired in asset acquisition | 14,000,000 | |||||||||||||||||||||||
Sponsor Equity Bridge Loan | Waiawa Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 26,000,000 | |||||||||||||||||||||||
Tax Equity Bridge Loan | Mililani I Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 60,000,000 | 60,000,000 | ||||||||||||||||||||||
Term Loan | Mililani I Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt, additions | 48,000,000 | |||||||||||||||||||||||
Construction Loan | Waiawa Drop Down | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 42,000,000 | |||||||||||||||||||||||
Bridge Loan, Due 2022 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount repurchased | $ 335,000,000 | |||||||||||||||||||||||
Bridge Loan, Due 2022 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 0 | $ 0 | 335,000,000 | $ 335,000,000 | ||||||||||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||||||||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Leverage ratio | 6 | |||||||||||||||||||||||
Collateral amount | $ 40,000,000 | |||||||||||||||||||||||
Borrower leverage ratio | 5.50 | |||||||||||||||||||||||
Covenant borrower interest coverage ratio | 175% | |||||||||||||||||||||||
Proceeds from the revolving credit facility | $ 80,000,000 | |||||||||||||||||||||||
Payments for the revolving credit facility | $ 305,000,000 | $ 325,000,000 | ||||||||||||||||||||||
Interest rate, percentage | 1.75% | 1.75% | ||||||||||||||||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | Letter of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Letters of credit outstanding | $ 125,000,000 | $ 125,000,000 | ||||||||||||||||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | 0 | 0 | 245,000,000 | |||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Outstanding borrowings | 0 | 0 | ||||||||||||||||||||||
2032 Senior Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 350,000,000 | $ 350,000,000 | 350,000,000 | |||||||||||||||||||||
Long-term debt — affiliate | $ 350,000,000 | |||||||||||||||||||||||
Interest rate, percentage | 375% | 375% | 375% | |||||||||||||||||||||
5.00% Senior Notes due in 2026 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt instrument, repurchased face amount | $ 350,000,000 | |||||||||||||||||||||||
Repurchased face amount, optionally exercised remaining principal, not validly tendered and purchased In tender offer | 227,000,000 | |||||||||||||||||||||||
Debt instrument, redemption price, percentage | 103% | |||||||||||||||||||||||
Debt instrument, repurchase amount | $ 359,000,000 | |||||||||||||||||||||||
Loss on debt extinguishment | $ 9,000,000 | |||||||||||||||||||||||
Write off of deferred debt issuance cost | $ 3,000,000 | |||||||||||||||||||||||
2031 Senior Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 925,000,000 | $ 925,000,000 | 925,000,000 | |||||||||||||||||||||
Long-term debt — affiliate | $ 925,000,000 | |||||||||||||||||||||||
Interest rate, percentage | 375% | 375% | 3.75% | |||||||||||||||||||||
5.75% Senior Notes due 2025 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt instrument, repurchased face amount | $ 600,000,000 | |||||||||||||||||||||||
Repurchased face amount, optionally exercised remaining principal, not validly tendered and purchased In tender offer | $ 183,000,000 | |||||||||||||||||||||||
Debt instrument, redemption price, percentage | 106% | |||||||||||||||||||||||
Debt instrument, repurchase amount | $ 636,000,000 | $ 636,000,000 | ||||||||||||||||||||||
Loss on debt extinguishment | (36,000,000) | |||||||||||||||||||||||
Loss on extinguishment of deferred financing fees | 5,000,000 | |||||||||||||||||||||||
El Segundo Energy Center | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount repurchased | $ 130,000,000 | |||||||||||||||||||||||
Waiawa | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments for other fees | 2,000,000 | |||||||||||||||||||||||
Waiawa | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments to fund project reserve accounts | 16,000,000 | |||||||||||||||||||||||
Waiawa | Construction Loans | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 20,000,000 | |||||||||||||||||||||||
Waiawa | Sponsor Equity Bridge Loan | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Repayment of debt, acquired in asset acquisition | $ 12,000,000 | |||||||||||||||||||||||
Waiawa | Tax Equity Bridge Loan | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | $ 55,000,000 | |||||||||||||||||||||||
Mililani I | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Expected contributions upon substantial completion | 42,000,000 | |||||||||||||||||||||||
Mililani I | CEG | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments for other fees | 2,000,000 | |||||||||||||||||||||||
Mililani I | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Payments to fund project reserve accounts | 15,000,000 | |||||||||||||||||||||||
Mililani I | Construction Loans | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | $ 7,000,000 | 16,000,000 | ||||||||||||||||||||||
Mililani I | Sponsor Equity Bridge Loan | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | 27,000,000 | |||||||||||||||||||||||
Mililani I | Sponsor Equity Bridge Loan | Tax Equity Investors | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Repayment of debt, acquired in asset acquisition | 14,000,000 | |||||||||||||||||||||||
Mililani I | Tax Equity Bridge Loan | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term debt | $ 60,000,000 | |||||||||||||||||||||||
Agua Caliente Solar, LLC, Nonrecourse Credit Agreement, Federal Financing Bank, Due 2037 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt instrument, face amount | $ 716,000,000 | |||||||||||||||||||||||
Agua Caliente Solar, LLC, Nonrecourse Credit Agreement, Federal Financing Bank, Due 2037 | Minimum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate, percentage | 2.395% | |||||||||||||||||||||||
Agua Caliente Solar, LLC, Nonrecourse Credit Agreement, Federal Financing Bank, Due 2037 | Maximum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate, percentage | 3.633% | |||||||||||||||||||||||
Pinnacle Repowering TE Holdco | Construction Loans | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 79,000,000 | |||||||||||||||||||||||
Aggregate principal amount repurchased | $ 117,000,000 | |||||||||||||||||||||||
Debt instrument, face amount | $ 126,000,000 | |||||||||||||||||||||||
Pinnacle Repowering TE Holdco | London Interbank Offered Rate (LIBOR) | Construction Loans | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 1% | |||||||||||||||||||||||
Tapestry Wind LLC, due 2031 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | 0 | 0 | 85,000,000 | |||||||||||||||||||||
Aggregate principal amount repurchased | $ 53,000,000 | |||||||||||||||||||||||
Tapestry Wind LLC, due 2031 | Letter of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Letters of credit outstanding | 0 | $ 0 | ||||||||||||||||||||||
Tapestry Wind LLC, due 2031 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 1.375% | |||||||||||||||||||||||
Viento Funding II, LLC Due 2023 and 2029 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | $ 190,000,000 | 184,000,000 | $ 184,000,000 | 29,000,000 | ||||||||||||||||||||
Viento Funding II, LLC Due 2023 and 2029 | Letter of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Letters of credit outstanding | 26,000,000 | $ 26,000,000 | ||||||||||||||||||||||
Debt instrument, face amount | 35,000,000 | |||||||||||||||||||||||
Viento Funding II, LLC Due 2023 and 2029 | Forecast | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt Instrument effective interest rate | 1.50% | 1.375% | ||||||||||||||||||||||
Viento Funding II, LLC Due 2023 and 2029 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Aggregate principal amount repurchased | 186,000,000 | |||||||||||||||||||||||
Loss on debt extinguishment | $ (2,000,000) | |||||||||||||||||||||||
Capistrano Wind Portfolio, due 2029 and 2031 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Total debt | 156,000,000 | $ 156,000,000 | $ 0 | |||||||||||||||||||||
Capistrano Wind Portfolio, due 2029 and 2031 | Letter of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Letters of credit outstanding | $ 36,000,000 | $ 36,000,000 | ||||||||||||||||||||||
Capistrano Wind Portfolio, due 2029 and 2031 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 2% | |||||||||||||||||||||||
Capistrano Wind Portfolio, due 2029 and 2031 | London Interbank Offered Rate (LIBOR) | Construction Loans | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 200% |
Long-term Debt - Interest Rate
Long-term Debt - Interest Rate Swaps (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Derivative notional amount | $ 1,084 |
Avra Valley | Maturity - November 30, 2030 | |
Debt Instrument [Line Items] | |
Percentage of principal | 88% |
Fixed interest rate | 2.333% |
Derivative notional amount | $ 32 |
AWAM | Maturity - May 15, 2031 | |
Debt Instrument [Line Items] | |
Percentage of principal | 100% |
Fixed interest rate | 2.47% |
Derivative notional amount | $ 12 |
Borrego | Maturity - December 31, 2024 | |
Debt Instrument [Line Items] | |
Percentage of principal | 100% |
Fixed interest rate | 0.476% |
Derivative notional amount | $ 6 |
Buckthorn Solar | Maturity - December 31, 2041 | |
Debt Instrument [Line Items] | |
Percentage of principal | 81% |
Derivative notional amount | $ 96 |
Carlsbad Drop Down | Maturity - September 30, 2027 | |
Debt Instrument [Line Items] | |
Percentage of principal | 100% |
Derivative notional amount | $ 115 |
Capistrano Wind Portfolio | |
Debt Instrument [Line Items] | |
Percentage of principal | 95% |
Derivative notional amount | $ 148 |
Kansas South | Maturity - December 31, 2030 | |
Debt Instrument [Line Items] | |
Percentage of principal | 75% |
Fixed interest rate | 2.368% |
Derivative notional amount | $ 14 |
Marsh Landing | Maturity - June 30, 2023 | |
Debt Instrument [Line Items] | |
Percentage of principal | 100% |
Derivative notional amount | $ 19 |
Mililani I | Maturity - September 30, 2042 | |
Debt Instrument [Line Items] | |
Percentage of principal | 94% |
Fixed interest rate | 2.041% |
Derivative notional amount | $ 44 |
NIMH Solar LLC | |
Debt Instrument [Line Items] | |
Percentage of principal | 100% |
Derivative notional amount | $ 163 |
Oahu Solar | Maturity - October 31, 2040 | |
Debt Instrument [Line Items] | |
Percentage of principal | 96% |
Derivative notional amount | $ 80 |
Rosie Class B LLC, due 2027 | |
Debt Instrument [Line Items] | |
Percentage of principal | 95% |
Fixed interest rate | 1.446% |
Derivative notional amount | $ 73 |
South Trent | Maturity - June 30, 2028 | |
Debt Instrument [Line Items] | |
Percentage of principal | 90% |
Fixed interest rate | 3.847% |
Derivative notional amount | $ 27 |
Viento Funding II | |
Debt Instrument [Line Items] | |
Percentage of principal | 90% |
Fixed interest rate | 2.53% |
Derivative notional amount | $ 165 |
Waiawa | Maturity - December 31, 2042 | |
Debt Instrument [Line Items] | |
Percentage of principal | 50% |
Fixed interest rate | 2.088% |
Derivative notional amount | $ 48 |
Walnut Creek | Maturity - May 31, 2023 | |
Debt Instrument [Line Items] | |
Percentage of principal | 94% |
Fixed interest rate | 3.543% |
Derivative notional amount | $ 18 |
WCEP Holdings | Maturity - May 31, 2023 | |
Debt Instrument [Line Items] | |
Percentage of principal | 92% |
Fixed interest rate | 4.003% |
Derivative notional amount | $ 24 |
Long-term Debt - Annual Maturit
Long-term Debt - Annual Maturities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 421 |
2024 | 410 |
2025 | 382 |
2026 | 361 |
2027 | 399 |
Thereafter | 4,899 |
Total | 6,872 |
Debt, Current | $ 97 |
Members' Equity (Details)
Members' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Feb. 15, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Special Distribution | Clearway Energy, Inc. | |||||
Class of Stock [Line Items] | |||||
Additional Cash Distributions Paid | $ 19 | ||||
Cash Distributions Paid | 8 | ||||
Pro Rata Share of Cash Distributions Paid, Utilized | $ 11 | ||||
Capital Unit, Class A and Class B | |||||
Class of Stock [Line Items] | |||||
Distributions paid (in dollars per share) | $ 0.3672 | $ 0.3604 | $ 0.3536 | $ 0.3468 | |
Capital Unit, Class C and Class D | |||||
Class of Stock [Line Items] | |||||
Distributions paid (in dollars per share) | $ 0.3672 | $ 0.3604 | $ 0.3536 | $ 0.3468 | |
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Common stock dividends declared (in dollars per share) | $ 0.3745 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting | ||||
Operating revenues | $ 1,190 | $ 1,286 | $ 1,199 | |
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 435 | 451 | 366 | |
Depreciation, Depletion and Amortization | 512 | 509 | 428 | |
Impairment losses | 16 | 6 | 24 | |
General and administrative | 38 | 38 | 33 | |
Business Combination, Acquisition Related Costs | 7 | 7 | 9 | |
Development costs | 2 | 6 | 5 | |
Total operating costs and expenses | 1,010 | |||
Gain on sale of business | 1,292 | 0 | 0 | |
Operating Income | 1,472 | 269 | 334 | |
Equity in earnings of unconsolidated affiliates | 29 | 32 | 7 | |
Impairment loss on investment | 0 | 0 | (8) | |
Gain on sale of unconsolidated affiliate | 0 | 0 | 49 | |
Other income, net | 17 | 3 | 4 | |
Loss on debt extinguishment | (2) | (53) | (24) | |
Interest expense | (232) | (312) | (414) | |
Income (Loss) Before Income Taxes | 1,284 | (61) | (52) | |
Income tax expense | 2 | 2 | 0 | |
Net income (loss) | 1,282 | (63) | (52) | |
Net Income Attributable to Clearway Energy LLC | 1,388 | 110 | 61 | |
Equity investments in affiliates | 364 | 381 | ||
Capital expenditures | 56 | 119 | ||
Total assets | 12,312 | 12,718 | ||
Operating Segments | ||||
Segment Reporting | ||||
Operating revenues | 1,190 | 1,286 | 1,199 | |
Corporate | ||||
Segment Reporting | ||||
Operating revenues | 0 | 0 | 0 | |
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | (2) | (2) | (2) | |
Depreciation, Depletion and Amortization | 0 | 0 | 0 | |
Impairment losses | 0 | 0 | 0 | |
General and administrative | 36 | 34 | 30 | |
Business Combination, Acquisition Related Costs | 7 | 7 | 9 | |
Development costs | 0 | 2 | 0 | |
Total operating costs and expenses | 41 | |||
Gain on sale of business | 1,292 | |||
Operating Income | 1,251 | (41) | (37) | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | |
Impairment loss on investment | 0 | |||
Gain on sale of unconsolidated affiliate | 49 | |||
Other income, net | 10 | 0 | (1) | |
Loss on debt extinguishment | 0 | (52) | (3) | |
Interest expense | (99) | (99) | (95) | |
Income (Loss) Before Income Taxes | 1,162 | (192) | ||
Income tax expense | 0 | 0 | ||
Net income (loss) | 1,162 | (192) | (87) | |
Net Income Attributable to Clearway Energy LLC | 1,161 | (193) | (86) | |
Equity investments in affiliates | 0 | 0 | ||
Capital expenditures | 1 | 1 | ||
Total assets | 546 | 42 | ||
Conventional | Operating Segments | ||||
Segment Reporting | ||||
Operating revenues | 417 | 441 | 437 | |
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 89 | 90 | 90 | |
Depreciation, Depletion and Amortization | 131 | 132 | 132 | |
Impairment losses | 0 | 0 | 0 | |
General and administrative | 0 | 0 | 0 | |
Business Combination, Acquisition Related Costs | 0 | 0 | 0 | |
Development costs | 0 | 0 | 0 | |
Total operating costs and expenses | 220 | |||
Gain on sale of business | 0 | |||
Operating Income | 197 | 219 | 215 | |
Equity in earnings of unconsolidated affiliates | 3 | 6 | 8 | |
Impairment loss on investment | 0 | |||
Gain on sale of unconsolidated affiliate | 0 | |||
Other income, net | 1 | 0 | 1 | |
Loss on debt extinguishment | 0 | 0 | 0 | |
Interest expense | (40) | (53) | (84) | |
Income (Loss) Before Income Taxes | 161 | 172 | ||
Income tax expense | 0 | 0 | ||
Net income (loss) | 161 | 172 | 140 | |
Net Income Attributable to Clearway Energy LLC | 161 | 172 | 140 | |
Equity investments in affiliates | 82 | 86 | ||
Capital expenditures | 11 | 12 | ||
Total assets | 2,251 | 2,442 | ||
Renewables | ||||
Segment Reporting | ||||
Impairment loss on investment | $ (8) | |||
Renewables | Operating Segments | ||||
Segment Reporting | ||||
Operating revenues | 696 | 641 | 569 | |
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 298 | 229 | 147 | |
Depreciation, Depletion and Amortization | 381 | 354 | 264 | |
Impairment losses | 16 | 6 | 24 | |
General and administrative | 0 | 0 | 0 | |
Business Combination, Acquisition Related Costs | 0 | 0 | 0 | |
Development costs | 0 | 0 | 0 | |
Total operating costs and expenses | 695 | |||
Gain on sale of business | 0 | |||
Operating Income | 1 | 52 | 134 | |
Equity in earnings of unconsolidated affiliates | 26 | 26 | (1) | |
Impairment loss on investment | (8) | |||
Gain on sale of unconsolidated affiliate | 0 | |||
Other income, net | 6 | 2 | 4 | |
Loss on debt extinguishment | (2) | (1) | (21) | |
Interest expense | (87) | (142) | (216) | |
Income (Loss) Before Income Taxes | (56) | (63) | ||
Income tax expense | 2 | 2 | ||
Net income (loss) | (58) | (65) | (108) | |
Net Income Attributable to Clearway Energy LLC | 49 | 109 | 4 | |
Equity investments in affiliates | 282 | 295 | ||
Capital expenditures | 33 | 77 | ||
Total assets | 9,515 | 9,603 | ||
Thermal | Operating Segments | ||||
Segment Reporting | ||||
Operating revenues | 77 | 204 | 193 | |
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 50 | 134 | 131 | |
Depreciation, Depletion and Amortization | 0 | 23 | 32 | |
Impairment losses | 0 | 0 | 0 | |
General and administrative | 2 | 4 | 3 | |
Business Combination, Acquisition Related Costs | 0 | 0 | 0 | |
Development costs | 2 | 4 | 5 | |
Total operating costs and expenses | 54 | |||
Gain on sale of business | 0 | |||
Operating Income | 23 | 39 | 22 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | |
Impairment loss on investment | 0 | |||
Gain on sale of unconsolidated affiliate | 0 | |||
Other income, net | 0 | 1 | 0 | |
Loss on debt extinguishment | 0 | 0 | 0 | |
Interest expense | (6) | (18) | (19) | |
Income (Loss) Before Income Taxes | 17 | 22 | ||
Income tax expense | 0 | 0 | ||
Net income (loss) | 17 | 22 | 3 | |
Net Income Attributable to Clearway Energy LLC | 17 | 22 | $ 3 | |
Equity investments in affiliates | 0 | 0 | ||
Capital expenditures | 11 | 29 | ||
Total assets | $ 0 | $ 631 | ||
SCE | Conventional | ||||
Segment Reporting | ||||
Customer's percentage of total revenue | 17% | 17% | 18% | |
SCE | Renewables | ||||
Segment Reporting | ||||
Customer's percentage of total revenue | 17% | 16% | 16% | |
PG&E | Conventional | ||||
Segment Reporting | ||||
Customer's percentage of total revenue | 10% | 10% | 10% | |
PG&E | Renewables | ||||
Segment Reporting | ||||
Customer's percentage of total revenue | 15% | 13% | 8% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
General and administrative | $ 38 | $ 38 | $ 33 |
RENOM | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 71 | 56 | 37 |
Due to related party | 14 | 9 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Due to related party | 3 | ||
Affiliated Entity | Administrative Services Agreements | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 16 | 14 | 10 |
CEG | |||
Related Party Transaction [Line Items] | |||
Due to related party | 2 | ||
General and administrative | $ 5 | $ 4 | $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Power procurement arrangements | $ 20 | $ 40 | $ 32 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 36 | $ 27 | $ 19 |
Variable lease cost | 11 | 15 | 9 |
Total lease cost | 47 | 42 | $ 28 |
ASSETS | |||
Right-of-use assets, net | $ 527 | $ 550 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term lease liabilities | Long-term lease liabilities | |
Liabilities [Abstract] | |||
Short-term lease liability - operating leases | $ 6 | $ 8 | |
Long-term lease liabilities | 548 | 561 | |
Total lease liabilities | $ 554 | $ 569 | |
Weighted average remaining lease term | 27 years | 28 years | |
Weighted average discount rate | 4.10% | 3.50% | |
Cash paid for operating leases | $ 28 | $ 26 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
2023 | $ 28 |
2024 | 30 |
2025 | 30 |
2026 | 31 |
2027 | 32 |
Thereafter | 831 |
Total lease payments | 982 |
Less imputed interest | (428) |
Total lease liability - operating leases | $ 554 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) renewalOption | Dec. 31, 2021 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total lease liability - operating leases | $ 554 | |
Right-of-use assets, net | $ 527 | $ 550 |
Mililani I | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease period | 36 years | |
Total lease liability - operating leases | $ 20 | |
Right-of-use assets, net | $ 19 | |
Oahu Solar Partnership | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease period | 35 years | |
Number of renewal options | renewalOption | 2 | |
Renewal period | 5 years | |
Total lease liability - operating leases | $ 20 | 20 |
Right-of-use assets, net | $ 17 | 18 |
Rosamond Central Drop Down | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease period | 35 years | |
Number of renewal options | renewalOption | 2 | |
Renewal period | 5 years | |
Total lease liability - operating leases | $ 12 | 12 |
Right-of-use assets, net | $ 11 | $ 11 |
Leases - Revenue Related to Lea
Leases - Revenue Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Lease revenue | $ 850 | $ 741 | $ 589 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating revenues | ||
Total Segments | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 816 | $ 727 | 566 |
Total Segments | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 435 | 455 | 451 |
Total Segments | Operating revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 1,251 | 1,182 | 1,017 |
Conventional | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 6 | 9 | 10 |
Conventional | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 435 | 455 | 451 |
Conventional | Operating revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 441 | 464 | 461 |
Renewables | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 809 | 716 | 554 |
Renewables | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 0 | 0 | 0 |
Renewables | Operating revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 809 | 716 | 554 |
Thermal | Energy Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 1 | 2 | 2 |
Thermal | Capacity Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | 0 | 0 | 0 |
Thermal | Operating revenue | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue | $ 1 | $ 2 | $ 2 |
Leases - Lessor - Minimum Futur
Leases - Lessor - Minimum Future Rent Payments Under Operating Leases (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 261 |
2024 | 106 |
2025 | 107 |
2026 | 108 |
2027 | 109 |
Thereafter | 1,281 |
Total lease payments | $ 1,972 |
Leases - Property, Plant and Eq
Leases - Property, Plant and Equipment Related to Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Property, plant and equipment | $ 8,630 | $ 8,981 |
Accumulated depreciation | (2,855) | (2,827) |
Net property, plant and equipment | $ 5,775 | $ 6,154 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant - P/L (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Other income, net | $ 17 | $ 3 | $ 4 |
Total other expense, net | (188) | (330) | (386) |
Net Income Attributable to Clearway Energy LLC | 1,388 | 110 | 61 |
Clearway Energy LLC | |||
Condensed Income Statements, Captions [Line Items] | |||
Total operating costs and expenses | 1 | 0 | 0 |
Equity in earnings of consolidated affiliates | 1,379 | 110 | 61 |
Other income, net | 10 | 0 | 0 |
Total other expense, net | 1,389 | 110 | 61 |
Net Income Attributable to Clearway Energy LLC | $ 1,388 | $ 110 | $ 61 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - B/S (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||||
Cash and cash equivalents | $ 657 | $ 179 | ||
Other Assets | ||||
Total Assets | 12,312 | 12,718 | ||
Other Liabilities | ||||
Accounts payable — affiliates | 24 | 110 | ||
Current Liabilities | ||||
Other non-current liabilities | 197 | 168 | ||
Total Liabilities | 8,145 | 9,501 | ||
Commitments and Contingencies | ||||
Members' Equity [Abstract] | ||||
Contributed capital | 1,308 | 1,495 | ||
Retained earnings | 1,240 | 43 | ||
Accumulated other comprehensive income (loss) | 21 | (13) | ||
Total Members’ Equity | 4,160 | 3,217 | $ 2,612 | $ 2,173 |
Total Liabilities and Members’ Equity | 12,312 | 12,718 | ||
Clearway Energy LLC | ||||
Current Assets | ||||
Cash and cash equivalents | 536 | 33 | ||
Other current assets | 1 | 0 | ||
Other Assets | ||||
Investment in consolidated subsidiaries | 2,034 | 1,497 | ||
Total Assets | 2,571 | 1,530 | ||
Other Liabilities | ||||
Accounts payable — affiliates | 1 | 5 | ||
Current Liabilities | ||||
Other non-current liabilities | 1 | 0 | ||
Total Liabilities | 2 | 5 | ||
Commitments and Contingencies | ||||
Members' Equity [Abstract] | ||||
Contributed capital | 1,308 | 1,495 | ||
Retained earnings | 1,240 | 43 | ||
Accumulated other comprehensive income (loss) | 21 | (13) | ||
Total Members’ Equity | 2,569 | 1,525 | ||
Total Liabilities and Members’ Equity | $ 2,571 | $ 1,530 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant - CF (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ 797 | $ 701 | $ 545 |
Net Cash Provided by (Used in) Investing Activities | 1,065 | (865) | (62) |
Proceeds from the issuance of class C units | 0 | 0 | 62 |
Net Cash (Used in) Provided by Financing Activities | (1,520) | 367 | (432) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 342 | 189 | 51 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 654 | 465 | 414 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 996 | 654 | 465 |
Clearway Energy LLC | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 8 | 0 | 0 |
Investments in consolidated affiliates | 845 | 202 | 306 |
Net Cash Provided by (Used in) Investing Activities | 845 | 202 | 306 |
Transfer of funds under intercompany cash management arrangement | (42) | (20) | (65) |
Tax Related Distributions | (19) | 0 | 0 |
Payments of distributions | (289) | (268) | (211) |
Net Cash (Used in) Provided by Financing Activities | (350) | (288) | (214) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 503 | (86) | 92 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 33 | 119 | 27 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 536 | 33 | 119 |
Clearway Energy LLC | Common Class C | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Proceeds from the issuance of class C units | $ 0 | $ 0 | $ 62 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant - Footnotes (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Power generation capacity, megawatts | 8,000 | ||
Clearway Energy LLC | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash distributions paid | $ | $ (289) | $ (268) | $ (211) |
Clearway Energy LLC | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Ownership percentage | 57.88% | ||
Clearway Energy LLC | CEG | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Ownership percentage | 42.12% | ||
Conventional Generation, Utility-Scale Solar, Distributed Solar, and Wind | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Power generation capacity, megawatts | 5,500 | ||
Generational Facilities and District Energy Systems | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Power generation capacity, megawatts | 2,500 |