NEXTERA ENERGY PARTNERS, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
110
|
|
|
$
|
108
|
|
Accounts receivable
|
101
|
|
|
83
|
|
Other receivables
|
156
|
|
|
155
|
|
Due from related parties
|
122
|
|
|
28
|
|
Inventory
|
24
|
|
|
24
|
|
Other
|
16
|
|
|
16
|
|
Total current assets
|
529
|
|
|
414
|
|
Other assets:
|
|
|
|
Property, plant and equipment – net
|
7,103
|
|
|
7,163
|
|
Intangible assets – PPAs – net
|
1,546
|
|
|
1,572
|
|
Intangible assets – customer relationships – net
|
606
|
|
|
610
|
|
Goodwill
|
609
|
|
|
609
|
|
Investments in equity method investees
|
1,830
|
|
|
1,814
|
|
Deferred income taxes
|
190
|
|
|
249
|
|
Other
|
153
|
|
|
131
|
|
Total other assets
|
12,037
|
|
|
12,148
|
|
TOTAL ASSETS
|
$
|
12,566
|
|
|
$
|
12,562
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable and accrued expenses
|
$
|
137
|
|
|
$
|
143
|
|
Due to related parties
|
68
|
|
|
66
|
|
Current portion of long-term debt
|
12
|
|
|
12
|
|
Accrued interest
|
17
|
|
|
25
|
|
Derivatives
|
21
|
|
|
20
|
|
Accrued property taxes
|
12
|
|
|
22
|
|
Other
|
49
|
|
|
62
|
|
Total current liabilities
|
316
|
|
|
350
|
|
Other liabilities and deferred credits:
|
|
|
|
Long-term debt
|
3,541
|
|
|
3,376
|
|
Asset retirement obligation
|
140
|
|
|
144
|
|
Derivatives
|
247
|
|
|
782
|
|
Due to related parties
|
35
|
|
|
33
|
|
Other
|
166
|
|
|
170
|
|
Total other liabilities and deferred credits
|
4,129
|
|
|
4,505
|
|
TOTAL LIABILITIES
|
4,445
|
|
|
4,855
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Common units (75.9 and 75.9 units issued and outstanding, respectively)
|
2,460
|
|
|
2,362
|
|
Accumulated other comprehensive loss
|
(8)
|
|
|
(8)
|
|
Noncontrolling interests
|
5,669
|
|
|
5,353
|
|
TOTAL EQUITY
|
8,121
|
|
|
7,707
|
|
TOTAL LIABILITIES AND EQUITY
|
$
|
12,566
|
|
|
$
|
12,562
|
|
This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.
NEXTERA ENERGY PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2021
|
|
2020
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
Net income (loss)
|
$
|
571
|
|
|
$
|
(720)
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
Depreciation and amortization
|
67
|
|
|
66
|
|
Intangible amortization – PPAs
|
26
|
|
|
26
|
|
|
|
|
|
Change in value of derivative contracts
|
(540)
|
|
|
795
|
|
Deferred income taxes
|
70
|
|
|
(75)
|
|
Equity in earnings of equity method investees, net of distributions received
|
(4)
|
|
|
7
|
|
Equity in losses of non-economic ownership interests
|
(14)
|
|
|
23
|
|
Other – net
|
2
|
|
|
5
|
|
Changes in operating assets and liabilities:
|
|
|
|
Current assets
|
(50)
|
|
|
4
|
|
|
|
|
|
Current liabilities
|
(24)
|
|
|
(31)
|
|
Noncurrent liabilities
|
—
|
|
|
(1)
|
|
Net cash provided by operating activities
|
104
|
|
|
99
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Capital expenditures and other investments
|
(45)
|
|
|
(52)
|
|
|
|
|
|
Payments to related parties under CSCS agreement – net
|
(74)
|
|
|
(48)
|
|
Distributions from equity method investee
|
—
|
|
|
8
|
|
Other
|
12
|
|
|
4
|
|
Net cash used in investing activities
|
(107)
|
|
|
(88)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
Proceeds from issuance of common units – net
|
3
|
|
|
2
|
|
Issuances of long-term debt
|
102
|
|
|
57
|
|
Retirements of long-term debt
|
(2)
|
|
|
(11)
|
|
Debt issuance costs
|
(1)
|
|
|
(1)
|
|
|
|
|
|
Partner contributions
|
—
|
|
|
3
|
|
Partner distributions
|
(117)
|
|
|
(97)
|
|
Preferred unit distributions
|
—
|
|
|
(2)
|
|
Proceeds from differential membership investors
|
41
|
|
|
46
|
|
Payments to differential membership investors
|
(6)
|
|
|
(6)
|
|
Payments to Class B noncontrolling interest investors
|
(14)
|
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in amounts due to related parties
|
(1)
|
|
|
(1)
|
|
|
|
|
|
Other
|
(1)
|
|
|
—
|
|
Net cash provided by (used in) financing activities
|
4
|
|
|
(20)
|
|
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
1
|
|
|
(9)
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – BEGINNING OF PERIOD
|
112
|
|
|
132
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF PERIOD
|
$
|
113
|
|
|
$
|
123
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
Partner noncash distributions
|
$
|
1
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in noncash investments in equity method investees - net
|
$
|
3
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Accrued property and other additions
|
$
|
21
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued preferred distributions
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.
NEXTERA ENERGY PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(millions)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Units
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Amount
|
|
Accumulated Other Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total Equity
|
Balances, December 31, 2020
|
|
|
|
|
75.9
|
|
|
$
|
2,362
|
|
|
$
|
(8)
|
|
|
$
|
5,353
|
|
|
$
|
7,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
369
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party distributions
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72)
|
|
|
(72)
|
|
Changes in non-economic ownership interests
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Other differential membership investment activity
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
Payments to Class B noncontrolling interest investors
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
(14)
|
|
Distributions to unitholders(a)
|
|
|
|
|
—
|
|
|
(47)
|
|
|
—
|
|
|
—
|
|
|
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adoption of accounting standards update(b)
|
|
|
|
|
—
|
|
|
(57)
|
|
|
—
|
|
|
—
|
|
|
(57)
|
|
Other
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, March 31, 2021
|
|
|
|
|
75.9
|
|
|
$
|
2,460
|
|
|
$
|
(8)
|
|
|
$
|
5,669
|
|
|
8,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
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|
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|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________________
(a) Distributions per common unit of $0.6150 were paid during the three months ended March 31, 2021.
(b) See Note 7 for further discussion. Includes deferred tax impact of approximately $7 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Units
|
|
Common Units
|
|
Accumulated
Other
|
|
|
|
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
Balances, December 31, 2019
|
4.7
|
|
|
$
|
183
|
|
|
65.5
|
|
|
$
|
2,008
|
|
|
$
|
(8)
|
|
|
$
|
4,883
|
|
|
$
|
7,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
—
|
|
|
2
|
|
|
—
|
|
|
(222)
|
|
|
—
|
|
|
(500)
|
|
|
(720)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
Related party distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62)
|
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other differential membership investment activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
Payments to Class B noncontrolling interest investors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
(10)
|
|
Distributions to unitholders(a)
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(35)
|
|
|
—
|
|
|
—
|
|
|
(37)
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, March 31, 2020
|
4.7
|
|
|
$
|
183
|
|
|
65.5
|
|
|
$
|
1,750
|
|
|
$
|
(8)
|
|
|
$
|
4,354
|
|
|
$
|
6,279
|
|
|
|
|
|
|
|
|
|
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|
|
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|
_____________________________
(a) Distributions per common unit of $0.5330 were paid during the three months ended March 31, 2020.
This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The accompanying condensed consolidated financial statements should be read in conjunction with the 2020 Form 10-K. In the opinion of NEP management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. Certain amounts included in the prior year's condensed consolidated financial statements have been reclassified to conform to the current year's presentation. The results of operations for an interim period generally will not give a true indication of results for the year.
1. Acquisitions
In December 2020, a subsidiary of NEP (the Wilmot purchaser) completed the acquisition from NEER (2020 acquisition) of 100% of the membership interests in Wilmot Energy Center, LLC (Wilmot) and 100% of the Class C membership interests in Pine Brooke Class A Holdings, LLC (Pine Brooke Holdings). Wilmot is an approximately 100 MW solar generation facility and 30 MW battery storage facility under construction in Arizona with an expected in service date in the second quarter of 2021. NEER has agreed to continue to manage the construction of Wilmot at its own cost, and to contribute to Wilmot any capital necessary for the construction of the project. If Wilmot does not achieve commercial operation by June 30, 2021, the Wilmot purchaser will have the right to require NEER to repurchase the ownership interests in Wilmot for the same purchase price paid by the Wilmot purchaser. The Class C membership interests in Pine Brooke Holdings represent an indirect 40% noncontrolling ownership interest in each of:
•Soldier Creek Wind, LLC, a project company that owns an approximately 300 MW wind generation facility located in Kansas;
•Ponderosa Wind, LLC, a project company that owns an approximately 200 MW wind generation facility located in Oklahoma;
•Blue Summit III Wind, LLC, a project company that owns an approximately 200 MW wind generation facility located in Texas;
•Saint Solar, LLC, a project company that owns an approximately 100 MW solar generation facility located in Arizona;
•Taylor Creek Solar, LLC, a project company that owns an approximately 75 MW solar generation facility located in Florida;
•Harmony Florida Solar, LLC, a project company that owns an approximately 75 MW solar generation facility located in Florida; and
•Sanford Airport Solar, LLC, a project company that owns an approximately 49 MW solar generation facility located in Maine.
NEP's ownership interest in Pine Brooke Holdings is reflected as investments in equity method investees.
In April 2021, an indirect subsidiary of NEP entered into multiple purchase and sale agreements to acquire 100% of the ownership interests in each of:
•Highview Power Holdings, LLC, which indirectly owns a 150 MW wind generation facility (Alta Wind VIII) located in California;
•Brookfield Windstar Holding, LLC, which indirectly owns a 120 MW wind generation facility (Windstar) located in California;
•Brookfield Coram Wind Development, LLC, which indirectly owns a 22 MW wind generation facility (Coram) located in California; and
•BAIF Granite Holdings, LLC, which indirectly owns a 99 MW wind generation facility (Granite) located in New Hampshire.
NEP expects to complete the acquisition in the third quarter of 2021, subject to customary closing conditions and the receipt of certain regulatory approvals, for a base purchase price of approximately $733 million, subject to closing adjustments.
2. Revenue
Revenue is recognized when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. NEP's operating revenues are generated primarily from various non-affiliated parties under PPAs and natural gas transportation agreements. NEP's operating revenues from contracts with customers are partly offset by the amortization of intangible assets - PPAs. Revenue is recognized as energy and any related renewable energy attributes are delivered, based on rates stipulated in the respective PPAs, or natural gas transportation services are performed. NEP believes that the obligation to deliver energy and provide the natural gas transportation services is satisfied over time as the customer simultaneously receives and consumes benefits provided by NEP. In addition, NEP believes that the obligation to deliver renewable energy attributes is satisfied at multiple points in time, with the control of the renewable energy attribute being transferred at the same time the related energy is delivered. Included in NEP’s operating revenues for the three months ended March 31, 2021 is $149 million and $60 million, and for the three months ended March 31, 2020 is $151 million and $54 million, of revenue from contracts with customers for renewable energy sales and natural
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
gas transportation services, respectively. NEP's accounts receivable are primarily associated with revenues earned from contracts with customers. Receivables represent unconditional rights to consideration and reflect the differences in timing of revenue recognition and cash collections. For substantially all of NEP's receivables, regardless of the type of revenue transaction from which the receivable originated, customer and counterparty credit risk is managed in the same manner and the terms and conditions of payment are similar.
NEP recognizes revenues as energy and any related renewable energy attributes are delivered or natural gas transportation services are performed, consistent with the amounts billed to customers based on rates stipulated in the respective PPAs. NEP considers the amount billed to represent the value of energy delivered or services provided to the customer. NEP’s customers typically receive bills monthly with payment due within 30 days.
The contracts with customers related to pipeline service revenues contain a fixed price related to firm natural gas transportation capacity with maturity dates ranging from 2021 to 2035. At March 31, 2021, NEP expects to record approximately $1.9 billion of revenues over the remaining terms of the related contracts as the capacity is provided. Revenues yet to be earned under contracts with customers to deliver energy and any related energy attributes, which have maturity dates ranging from 2026 to 2046, will vary based on the volume of energy delivered. At March 31, 2021, NEP expects to record approximately $199 million of revenues related to the fixed price components of one PPA through 2039 as the energy is delivered.
3. Derivative Instruments and Hedging Activity
NEP uses derivative instruments (primarily interest rate swaps) to manage the interest rate cash flow risk associated with outstanding and expected future debt issuances and borrowings. NEP records all derivative instruments that are required to be marked to market as either assets or liabilities on its condensed consolidated balance sheets and measures them at fair value each reporting period. NEP does not utilize hedge accounting for its derivative instruments. All changes in the derivatives' fair value are recognized in interest expense in the condensed consolidated statements of income (loss). At March 31, 2021 and December 31, 2020, the net notional amounts of the interest rate contracts were approximately $7,094 million and $7,088 million, respectively.
At March 31, 2021, NEP's AOCI does not include any amounts related to cash flow hedges. Cash flows from the interest rate contracts are reported in cash flows from operating activities in the condensed consolidated statements of cash flows.
Fair Value Measurement of Derivative Instruments - The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (Level 1) or pricing inputs that are observable (Level 2) whenever that information is available and using unobservable inputs (Level 3) to estimate fair value only when relevant observable inputs are not available. NEP uses several different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or comparable assets and liabilities for those assets and liabilities that are measured at fair value on a recurring basis. Certain financial instruments may be valued using multiple inputs including discount rates, counterparty credit ratings and credit enhancements. NEP’s assessment of the significance of any particular input to the fair value measurement requires judgment and may affect the placement of those assets and liabilities within the fair value hierarchy levels. Non-performance risk, including the consideration of a credit valuation adjustment, is also considered in the determination of fair value for all assets and liabilities measured at fair value. Transfers between fair value hierarchy levels occur at the beginning of the period in which the transfer occurred.
NEP estimates the fair value of its derivative instruments using an income approach based on a discounted cash flows valuation technique utilizing the net amount of estimated future cash inflows and outflows related to the agreements. The primary inputs used in the fair value measurements include the contractual terms of the derivative agreements, current interest rates and credit profiles. The significant inputs for the resulting fair value measurement are market-observable inputs and the measurements are reported as Level 2 in the fair value hierarchy.
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The tables below present NEP's gross derivative positions, based on the total fair value of each derivative instrument, at March 31, 2021 and December 31, 2020, as required by disclosure rules, as well as the location of the net derivative positions, based on the expected timing of future payments, on NEP's condensed consolidated balance sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(a)
|
|
Total
|
|
|
(millions)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
(49)
|
|
|
$
|
6
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
(49)
|
|
|
$
|
268
|
|
|
|
|
|
|
|
|
|
|
|
|
Net fair value by balance sheet line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent other assets
|
|
|
|
|
|
|
|
|
|
$
|
6
|
|
Total derivative assets
|
|
|
|
|
|
|
|
|
|
$
|
6
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
|
$
|
21
|
|
Noncurrent derivative liabilities
|
|
|
|
|
|
|
|
|
|
247
|
|
Total derivative liabilities
|
|
|
|
|
|
|
|
|
|
$
|
268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(a)
|
|
Total
|
|
|
(millions)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
(47)
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
849
|
|
|
$
|
—
|
|
|
$
|
(47)
|
|
|
$
|
802
|
|
|
|
|
|
|
|
|
|
|
|
|
Net fair value by balance sheet line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
|
$
|
20
|
|
Noncurrent derivative liabilities
|
|
|
|
|
|
|
|
|
|
782
|
|
Total derivative liabilities
|
|
|
|
|
|
|
|
|
|
$
|
802
|
|
____________________
(a) Includes the effect of the contractual ability to settle contracts under master netting arrangements.
Financial Statement Impact of Derivative Instruments - Gains (losses) related to NEP's interest rate contracts are recorded in the condensed consolidated financial statements as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
(millions)
|
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) recognized in interest expense
|
|
|
|
|
$
|
535
|
|
|
$
|
(795)
|
|
Credit-Risk-Related Contingent Features - Certain of NEP's derivative instruments contain credit-related cross-default and material adverse change triggers, none of which contain requirements to maintain certain credit ratings or financial ratios. At March 31, 2021 and December 31, 2020, the aggregate fair value of NEP's derivative instruments with contingent risk features that were in a liability position was approximately $287 million and $769 million, respectively.
4. Non-Derivative Fair Value Measurements
Non-derivative fair value measurements consist of NEP's cash equivalents. The fair value of these financial assets is determined using the valuation techniques and inputs as described in Note 3 - Fair Value Measurement of Derivative Instruments. The fair value of money market funds that are included in cash and cash equivalents, current other assets and noncurrent other assets on NEP's condensed consolidated balance sheets is estimated using a market approach based on current observable market prices.
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Recurring Non-Derivative Fair Value Measurements - NEP’s financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021
|
|
December 31, 2020
|
|
Level 1
|
|
Level 2
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Total
|
|
(millions)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments Recorded at Other than Fair Value - The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021
|
|
December 31, 2020
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
(millions)
|
Long-term debt, including current maturities(a)
|
$
|
3,553
|
|
|
$
|
3,711
|
|
|
$
|
3,388
|
|
|
$
|
3,529
|
|
____________________
(a) At March 31, 2021 and December 31, 2020, approximately $3,686 million and $3,503 million, respectively, of the fair value is estimated using a market approach based on quoted market prices for the same or similar issues (Level 2); the balance is estimated using an income approach utilizing a discounted cash flow valuation technique, considering the current credit profile of the debtor (Level 3). At March 31, 2021, approximately $637 million of the fair value relates to the 2020 convertible notes and is estimated using Level 2.
5. Income Taxes
Income taxes are calculated for NEP as a single taxpaying corporation for U.S. federal and state income taxes (based on NEP's election to be taxed as a corporation). NEP recognizes in income its applicable ownership share of U.S. income taxes due to the disregarded tax status of substantially all of the U.S. projects under NEP OpCo. Net income or loss attributable to noncontrolling interests includes minimal U.S. taxes.
The effective tax rate for the three months ended March 31, 2021 was approximately 11% and for the three months ended March 31, 2020 was approximately 9%. The effective tax rate is below the U.S. statutory rate of 21% primarily due to tax expense (benefit) attributable to noncontrolling interests of approximately $(78) million for the three months ended March 31, 2021 and $105 million for the three months ended March 31, 2020.
6. Variable Interest Entities
NEP has identified NEP OpCo, a limited partnership with a general partner and limited partners, as a VIE. NEP has consolidated the results of NEP OpCo and its subsidiaries because of its controlling interest in the general partner of NEP OpCo. At March 31, 2021, NEP owned an approximately 42.8% limited partner interest in NEP OpCo and NEE Equity owned a noncontrolling 57.2% limited partner interest in NEP OpCo (NEE's noncontrolling interest). The assets and liabilities of NEP OpCo as well as the operations of NEP OpCo represent substantially all of NEP's assets and liabilities and its operations.
At March 31, 2021, NEP OpCo consolidated 13 VIEs related to certain subsidiaries which have sold differential membership interests in entities which own and operate 23 wind generation facilities as well as one solar facility that is under construction (see Note 1). These entities are considered VIEs because the holders of the differential membership interests do not have substantive rights over the significant activities of these entities. The assets, primarily property, plant and equipment - net, and liabilities, primarily asset retirement obligation and noncurrent due to related parties, of the VIEs, totaled approximately $5,277 million and $135 million, respectively, at March 31, 2021 and $5,299 million and $224 million, respectively, at December 31, 2020.
At March 31, 2021, NEP OpCo also consolidated five VIEs related to the sales of noncontrolling Class B interests in certain subsidiaries (see Note 10 - Noncontrolling Interests) which have ownership interests in and operate wind and solar facilities with a combined net generating capacity of approximately 3,704 MW as well as ownership interests in eight natural gas pipeline assets. These entities are considered VIEs because the holders of the noncontrolling Class B interests do not have substantive rights over the significant activities of these entities. The assets, primarily property, plant and equipment - net and intangible assets - PPAs, and the liabilities, primarily long-term debt, other long-term liabilities and asset retirement obligation, of the VIEs totaled approximately $9,421 million and $1,362 million, respectively, at March 31, 2021 and $9,410 million and $1,502 million, respectively, at December 31, 2020. Certain of these VIEs include four other VIEs related to NEP's ownership interests in Rosmar, Silver State, Meade and Pine Brooke Holdings (see Note 1). In addition, certain of these VIEs contain entities which have sold differential membership interests and approximately $2,686 million and $2,694 million of assets and $72 million and
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
$153 million of liabilities are also included in the disclosure of the VIEs related to differential membership interests at March 31, 2021 and December 31, 2020, respectively.
NEP has an indirect equity method investment in three NEER solar projects with a total generating capacity of 277 MW. Through a series of transactions, a subsidiary of NEP issued 1,000,000 NEP OpCo Class B Units, Series 1 and 1,000,000 NEP OpCo Class B Units, Series 2, to NEER for approximately 50% of the ownership interests in the three solar projects (non-economic ownership interests). NEER, as holder of the NEP OpCo Class B Units, will retain 100% of the economic rights in the projects to which the respective Class B Units relate, including the right to all distributions paid by the project subsidiaries that own the projects to NEP OpCo. NEER has agreed to indemnify NEP against all risks relating to NEP’s ownership of the projects until NEER offers to sell economic interests to NEP and NEP accepts such offer, if NEP chooses to do so. NEER has also agreed to continue to manage the operation of the projects at its own cost, and to contribute to the projects any capital necessary for the operation of the projects, until NEER offers to sell economic interests to NEP and NEP accepts such offer. At March 31, 2021 and December 31, 2020, NEP's equity method investment related to the non-economic ownership interests of approximately $11 million and $10 million, respectively, is reflected as noncurrent other assets and $11 million and $21 million, respectively, is reflected as noncurrent other liabilities on the condensed consolidated balance sheets. All equity in earnings of the non-economic ownership interests is allocated to net income attributable to noncontrolling interests. NEP is not the primary beneficiary and therefore does not consolidate these entities because it does not control any of the ongoing activities of these entities, was not involved in the initial design of these entities and does not have a controlling interest in these entities.
7. Debt
Significant long-term debt issuances and borrowings by subsidiaries of NEP during the three months ended March 31, 2021 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date Issued/Borrowed
|
|
Debt Issuances/Borrowings
|
|
Interest
Rate
|
|
Principal
Amount
|
|
Maturity
Date
|
|
|
|
|
|
|
(millions)
|
|
|
February 2021
|
|
NEP OpCo senior secured revolving credit facility
|
|
Variable(a)
|
|
$
|
90
|
|
(b)
|
2026
|
January 2021 - March 2021
|
|
Senior secured limited-recourse debt
|
|
Variable(a)
|
|
$
|
12
|
|
(c)
|
2026
|
————————————
(a)Variable rate is based on an underlying index plus a margin.
(b)At March 31, 2021, $90 million of borrowings were outstanding and approximately $115 million of letters of credit were issued under the NEP OpCo credit facility. Approximately $4 million of the outstanding borrowings have a maturity date in 2025.
(c)At March 31, 2021, approximately $851 million of borrowings were outstanding under the existing credit agreement of the Meade purchaser and Pipeline Investment Holdings, LLC (Meade credit agreement).
In February 2021, NEP OpCo and its direct subsidiary entered into an amendment of their existing revolving credit facility. The amendments to the revolving credit facility include, among other things, an extension of the maturity from February 2025 to February 2026 for essentially all of the NEP OpCo credit facility.
NEP OpCo and its subsidiaries' secured long-term debt agreements are secured by liens on certain assets and contain provisions which, under certain conditions, could restrict the payment of distributions or related party fee payments. At March 31, 2021, NEP and its subsidiaries were in compliance with all financial debt covenants under their financings.
On January 1, 2021, NEP adopted an accounting standards update which updated the accounting guidance for financial instruments with the characteristics of liabilities and equity, including debt with conversion options and other equity-linked instruments such as the $600 million in principal amount of senior unsecured convertible notes issued in December 2020 (2020 convertible notes). NEP adopted the standards update by applying it retrospectively with the cumulative effect recognized as of January 1, 2021 (modified retrospective approach). Upon adoption, NEP reclassified approximately $64 million related to the embedded conversion feature for the 2020 convertible notes from common units equity to long-term debt.
8. Equity
Distributions - On April 20, 2021, the board of directors of NEP authorized a distribution of $0.6375 per common unit payable on May 14, 2021 to its common unitholders of record on May 6, 2021.
Earnings (Loss) Per Unit - Diluted earnings (loss) per unit is based on the weighted-average number of common units and potential common units outstanding during the period, including the dilutive effect of the convertible notes and preferred units. The dilutive effect of the 2020 convertible notes, and for the prior year period, the 2017 convertible notes and preferred units, is computed using the if-converted method.
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The reconciliation of NEP's basic and diluted earnings (loss) per unit for the three months ended March 31, 2021 and 2020 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
(millions, except per unit amounts)
|
|
Numerator:
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to NEP – basic
|
|
|
|
|
$
|
202
|
|
|
$
|
(222)
|
|
|
Adjustments for 2017 convertible notes and preferred units(a)
|
|
|
|
|
—
|
|
|
—
|
|
|
Net income (loss) attributable to NEP used to compute diluted earnings (loss) per unit
|
|
|
|
|
$
|
202
|
|
|
$
|
(222)
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted-average number of common units outstanding – basic
|
|
|
|
|
75.9
|
|
|
65.5
|
|
|
Effect of dilutive convertible notes and preferred units(a)
|
|
|
|
|
0.1
|
|
|
—
|
|
|
Weighted-average number of common units outstanding and assumed conversions
|
|
|
|
|
76.0
|
|
|
65.5
|
|
|
Earnings (loss) per unit attributable to NEP:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
2.66
|
|
|
$
|
(3.39)
|
|
|
Assuming dilution
|
|
|
|
|
$
|
2.66
|
|
|
$
|
(3.39)
|
|
|
————————————
(a)Due to the net losses incurred during the three months ended March 31, 2020, the weighted-average number of common units issuable pursuant to the 2017 convertible notes and preferred units totaling approximately 10.3 million were not included in the calculation of diluted loss per unit due to their antidilutive effect.
Accumulated Other Comprehensive Income (Loss) - During the three months ended March 31, 2021 and 2020, NEP did not recognize any other comprehensive income (loss). At March 31, 2021 and 2020, NEP's accumulated other comprehensive loss totaled approximately $20 million and $22 million, respectively, of which $12 million and $14 million, respectively, was attributable to noncontrolling interest and $8 million and $8 million, respectively, was attributable to NEP.
9. Related Party Transactions
Each project entered into O&M agreements and ASAs with subsidiaries of NEER whereby the projects pay a certain annual fee plus actual costs incurred in connection with certain O&M and administrative services performed under these agreements. These services are reflected as operations and maintenance in the condensed consolidated statements of income (loss). Additionally, certain NEP subsidiaries pay affiliates for transmission and retail power services which are reflected as operations and maintenance in the condensed consolidated statements of income (loss). Certain projects have also entered into various types of agreements including those related to shared facilities and transmission lines, transmission line easements, technical support and construction coordination with subsidiaries of NEER whereby certain fees or cost reimbursements are paid to, or received by, certain subsidiaries of NEER.
Management Services Agreement - Under the MSA, an indirect wholly owned subsidiary of NEE provides operational, management and administrative services to NEP, including managing NEP’s day-to-day affairs and providing individuals to act as NEP’s executive officers and directors, in addition to those services that are provided under the existing O&M agreements and ASAs described above between NEER subsidiaries and NEP subsidiaries. NEP OpCo pays NEE an annual management fee equal to the greater of 1% of the sum of NEP OpCo’s net income plus interest expense, income tax expense and depreciation and amortization expense less certain non-cash, non-recurring items for the most recently ended fiscal year and $4 million (as adjusted for inflation beginning in 2016), which is paid in quarterly installments with an additional payment each January to the extent 1% of the sum of NEP OpCo’s net income plus interest expense, income tax expense and depreciation and amortization expense less certain non-cash, non-recurring items for the preceding fiscal year exceeds $4 million (as adjusted for inflation beginning in 2016). NEP OpCo also makes certain payments to NEE based on the achievement by NEP OpCo of certain target quarterly distribution levels to its unitholders. NEP’s O&M expenses for the three months ended March 31, 2021 include approximately $31 million and for the three months ended March 31, 2020 include $26 million related to the MSA.
Cash Sweep and Credit Support Agreement - NEP OpCo is a party to the CSCS agreement with NEER under which NEER and certain of its affiliates provide credit support in the form of letters of credit and guarantees to satisfy NEP’s subsidiaries’ contractual obligations. NEP OpCo pays NEER an annual credit support fee based on the level and cost of the credit support provided, payable in quarterly installments. NEP’s O&M expenses for the three months ended March 31, 2021 include approximately $1 million and for the three months ended March 31, 2020 include $1 million related to the CSCS agreement.
NEER and certain of its affiliates may withdraw funds (Project Sweeps) from NEP OpCo under the CSCS agreement, or its subsidiaries in connection with certain long-term debt agreements, and hold those funds in accounts belonging to NEER or its affiliates to the extent the funds are not required to pay project costs or otherwise required to be maintained by NEP's subsidiaries. NEER and its affiliates may keep the funds until the financing agreements permit distributions to be made, or, in the case of NEP OpCo, until such funds are required to make distributions or to pay expenses or other operating costs or NEP OpCo
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
otherwise demands the return of such funds. If NEER or its affiliates fail to return withdrawn funds when required by NEP's subsidiaries’ financing agreements, the lenders will be entitled to draw on any credit support provided by NEER or its affiliates in the amount of such withdrawn funds. If NEER or one of its affiliates realizes any earnings on the withdrawn funds prior to the return of such funds, it will be permitted to retain those earnings. At March 31, 2021 and December 31, 2020, the cash sweep amounts held in accounts belonging to NEER or its affiliates were approximately $84 million and $10 million, respectively, and are included in due from related parties on the condensed consolidated balance sheets.
Guarantees and Letters of Credit Entered into by Related Parties - Certain PPAs include requirements of the project entities to meet certain performance obligations. NEECH or NEER has provided letters of credit or guarantees for certain of these performance obligations and payment of any obligations from the transactions contemplated by the PPAs. In addition, certain financing agreements require cash and cash equivalents to be reserved for various purposes. In accordance with the terms of these financing agreements, guarantees from NEECH have been substituted in place of these cash and cash equivalents reserve requirements. Also, under certain financing agreements, indemnifications have been provided by NEECH. In addition, certain interconnection agreements and site certificates require letters of credit or a surety bond to secure certain payment or restoration obligations related to those agreements. NEECH also guarantees the Project Sweep amounts held in accounts belonging to NEER, as described above. At March 31, 2021, NEECH or NEER guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $566 million related to these obligations. Agreements related to the sale of differential membership interests require NEER to guarantee payments due by the VIEs and the indemnifications to the VIEs' respective investors. At March 31, 2021, NEER guaranteed a total of approximately $11 million related to these obligations.
Due to Related Parties - Noncurrent amounts due to related parties on the condensed consolidated balance sheets primarily represent amounts owed by certain of NEP's wind projects to NEER to refund NEER for certain transmission costs paid on behalf of the wind projects. Amounts will be paid to NEER as the wind projects receive payments from third parties for related notes receivable recorded in noncurrent other assets on the condensed consolidated balance sheets.
Transportation and Fuel Management Agreements - A subsidiary of NEP assigned to a subsidiary of NEER certain gas commodity agreements in exchange for entering into transportation agreements and a fuel management agreement whereby the benefits of the gas commodity agreements (net of transportation paid to the NEP subsidiary) are passed back to the NEP subsidiary. NEP recognized revenues related to the transportation and fuel management agreements of approximately $33 million during the three months ended March 31, 2021 and $4 million during the three months ended March 31, 2020. The increase in the recognized revenues for the three months ended March 31, 2021 primarily relates to higher demand and the related impact on natural gas prices during extreme winter weather experienced primarily in Texas during February 2021 (February weather event). At March 31, 2021, current due from related parties on the condensed consolidated balance sheets includes approximately $29 million related to the benefits of the gas commodity agreements, of which $16 million was repaid as of April 23, 2021.
10. Summary of Significant Accounting and Reporting Policies
Restricted Cash - At March 31, 2021 and December 31, 2020, NEP had approximately $3 million and $4 million, respectively, of restricted cash included in current other assets on NEP's condensed consolidated balance sheets. Restricted cash at March 31, 2021 and December 31, 2020 is primarily related to collateral deposits from a counterparty. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds.
Property, Plant and Equipment - Property, plant and equipment consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021
|
|
December 31, 2020
|
|
(millions)
|
Property, plant and equipment, gross
|
$
|
8,607
|
|
|
$
|
8,606
|
|
Accumulated depreciation
|
(1,504)
|
|
|
(1,443)
|
|
Property, plant and equipment - net
|
$
|
7,103
|
|
|
$
|
7,163
|
|
|
|
|
|
NEXTERA ENERGY PARTNERS, LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Noncontrolling Interests - At March 31, 2021, the Class B noncontrolling ownership interests (the Class B noncontrolling ownership interests in NEP Renewables, NEP Renewables II, NEP Pipelines, STX Midstream and Genesis Holdings owned by third parties), the differential membership interests, NEE's approximately 57.2% noncontrolling limited partner interest in NEP OpCo and NEER's approximately 50% noncontrolling ownership interest in Silver State, as well as a third party's 10% interest in one of the Texas pipelines and the non-economic ownership interests are reflected as noncontrolling interests on the condensed consolidated balance sheets. The impact of the net income (loss) attributable to the differential membership interests and the Class B noncontrolling ownership interests are allocated to NEE Equity's noncontrolling ownership interest and the net income attributable to NEP based on the respective ownership percentage of NEP OpCo. Details of the activity in noncontrolling interests are below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Noncontrolling Ownership Interests
|
|
Differential Membership Interests
|
|
Noncontrolling Ownership Interests in NEP OpCo and Silver State
|
|
Other Noncontrolling Ownership Interests
|
|
Total Noncontrolling
Interests
|
Three months ended March 31, 2021
|
|
(millions)
|
Balances, December 31, 2020
|
|
$
|
3,551
|
|
|
$
|
1,758
|
|
|
$
|
(14)
|
|
|
$
|
58
|
|
|
$
|
5,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to NCI
|
|
67
|
|
|
(77)
|
|
|
363
|
|
|
16
|
|
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party distributions
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
(1)
|
|
|
(72)
|
|
Changes in non-economic ownership interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Differential membership investment contributions, net of distributions
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
Payments to Class B noncontrolling interest investors
|
|
(14)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
1
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Balances, March 31, 2021
|
|
$
|
3,605
|
|
|
$
|
1,715
|
|
|
$
|
279
|
|
|
$
|
70
|
|
|
$
|
5,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Noncontrolling Ownership Interests
|
|
Differential Membership Interests
|
|
Noncontrolling Ownership Interests in NEP OpCo and Silver State
|
|
Other Noncontrolling Ownership Interests
|
|
Total Noncontrolling
Interests
|
Three months ended March 31, 2020
|
|
(millions)
|
Balances, December 31, 2019
|
|
$
|
2,628
|
|
|
$
|
1,798
|
|
|
$
|
389
|
|
|
$
|
68
|
|
|
$
|
4,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to NCI
|
|
52
|
|
|
(71)
|
|
|
(459)
|
|
|
(22)
|
|
|
(500)
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
Related party distributions
|
|
—
|
|
|
—
|
|
|
(60)
|
|
|
(2)
|
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
Differential membership investment contributions, net of distributions
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
40
|
|
Payments to Class B noncontrolling interest investors
|
|
(10)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, March 31, 2020
|
|
$
|
2,670
|
|
|
$
|
1,767
|
|
|
$
|
(130)
|
|
|
$
|
47
|
|
|
$
|
4,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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11. Commitments and Contingencies
Development, Engineering and Construction Commitments - At March 31, 2021, an indirect subsidiary of NEP had a funding commitment related to a pipeline expansion project. As of March 31, 2021, the NEP subsidiary had invested approximately $42 million related to the expansion project which is reflected as investments in equity method investees on the condensed consolidated balance sheets. As of March 31, 2021, the NEP subsidiary has a remaining commitment of approximately $48 million.
Coronavirus Pandemic - NEP is closely monitoring the global outbreak of the novel coronavirus (COVID-19) and is taking steps intended to mitigate the potential risks to NEP posed by COVID-19. NEP has implemented its pandemic plan, which includes various processes and procedures intended to limit the impact of COVID-19 on its business. These processes and procedures include the pandemic plan implemented by NEER related to services NEER provides to NEP. To date, there has been no material impact on NEP's operations, financial performance, or liquidity as a result of COVID-19; however, the ultimate severity or duration of the outbreak or its effects on the global, national or local economy, the capital and credit markets, the services NEER provides to NEP, or NEP's customers and suppliers is uncertain. NEP cannot predict whether COVID-19 will have a material impact on its business, financial condition, liquidity, results of operations and ability to make cash distributions to its unitholders.