Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION | |||||
GLOSSARY OF TERMS | |||||
PART I — FINANCIAL INFORMATION | |||||
ITEM 1 — FINANCIAL STATEMENTS AND NOTES | |||||
ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |||||
ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | |||||
ITEM 4 — CONTROLS AND PROCEDURES | |||||
PART II — OTHER INFORMATION | |||||
ITEM 1 — LEGAL PROCEEDINGS | |||||
ITEM 1A — RISK FACTORS | |||||
ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | |||||
ITEM 3 — DEFAULTS UPON SENIOR SECURITIES | |||||
ITEM 4 — MINE SAFETY DISCLOSURES | |||||
ITEM 5 — OTHER INFORMATION | |||||
ITEM 6 — EXHIBITS | |||||
SIGNATURES | |||||
2025 Senior Notes | $600 million aggregate principal amount of 5.750% unsecured senior notes due 2025, issued by Clearway Energy Operating LLC, which were repurchased and redeemed in March 2021 | ||||
2028 Senior Notes | $850 million aggregate principal amount of 4.750% unsecured senior notes due 2028, issued by Clearway Energy Operating LLC | ||||
2031 Senior Notes | $925 million aggregate principal amount of 3.750% unsecured senior notes due 2031, issued by Clearway Energy Operating LLC | ||||
2032 Senior Notes | $350 million aggregate principal amount of 3.750% unsecured senior notes due 2032, issued by Clearway Energy Operating LLC | ||||
Adjusted EBITDA | A non-GAAP measure, represents earnings before interest (including loss on debt extinguishment), tax, depreciation and amortization adjusted for mark-to-market gains or losses, asset write offs and impairments; and factors which the Company does not consider indicative of future operating performance | ||||
ASC | The FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP | ||||
ASU | Accounting Standards Updates - updates to the ASC | ||||
ATM Programs | At-The-Market Equity Offering Programs | ||||
Bridge Loan Agreement | Senior secured bridge credit agreement entered into by Clearway Energy Operating LLC that provided a term loan facility in an aggregate principal amount of $335 million and was repaid on May 3, 2022 | ||||
CAFD | A non-GAAP measure, Cash Available for Distribution is defined as of June 30, 2022 as Adjusted EBITDA plus cash distributions/return of investment from unconsolidated affiliates, cash receipts from notes receivable, cash distributions from noncontrolling interests, adjustments to reflect sales-type lease cash payments and payments for lease expenses, less cash distributions to noncontrolling interests, maintenance capital expenditures, pro-rata Adjusted EBITDA from unconsolidated affiliates, cash interest paid, income taxes paid, principal amortization of indebtedness, changes in prepaid and accrued capacity payments and adjusted for development expenses | ||||
CEG | Clearway Energy Group LLC (formerly Zephyr Renewables LLC) | ||||
CEG Master Services Agreement | Master Services Agreements entered into as of August 31, 2018 between the Company, Clearway Energy LLC and Clearway Energy Operating LLC, and CEG | ||||
Clearway Energy LLC | The holding company through which the projects are owned by Clearway Energy Group LLC, the holder of Class B and Class D units, and Clearway Energy, Inc., the holder of the Class A and Class C units | ||||
Clearway Energy Group LLC | The holder of all of the Company’s Class B and Class D common shares and Clearway Energy LLC’s Class B and Class D units and from time to time, possibly shares of the Company’s Class A and/or Class C common stock | ||||
Clearway Energy Operating LLC | The holder of the project assets that are owned by Clearway Energy LLC | ||||
Company | Clearway Energy, Inc. together with its consolidated subsidiaries | ||||
CVSR | California Valley Solar Ranch | ||||
CVSR Holdco | CVSR Holdco LLC, the indirect owner of CVSR | ||||
Distributed Solar | Solar power projects, typically less than 20 MW in size (on an alternating current, or AC, basis), that primarily sell power produced to customers for usage on site, or are interconnected to sell power into the local distribution grid | ||||
Drop Down Assets | Assets under common control acquired by the Company from CEG | ||||
Exchange Act | The Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FWS | U.S. Fish & Wildlife Service | ||||
GAAP | Accounting principles generally accepted in the U.S. | ||||
GenConn | GenConn Energy LLC | ||||
GIP | Global Infrastructure Partners | ||||
HLBV | Hypothetical Liquidation at Book Value |
KKR | KKR Thor Bidco, LLC, an affiliate of Kohlberg Kravis Roberts & Co. L.P. | ||||
LIBOR | London Inter-Bank Offered Rate | ||||
Mesquite Star | Mesquite Star Special LLC | ||||
MMBtu | Million British Thermal Units | ||||
Mt. Storm | NedPower Mount Storm LLC | ||||
MW | Megawatt | ||||
MWh | Saleable megawatt hours, net of internal/parasitic load megawatt-hours | ||||
MWt | Megawatts Thermal Equivalent | ||||
Net Exposure | Counterparty credit exposure to Clearway Energy, Inc. net of collateral | ||||
NOLs | Net Operating Losses | ||||
NPNS | Normal Purchases and Normal Sales | ||||
OCI | Other comprehensive income | ||||
OCL | Other comprehensive loss | ||||
O&M | Operations and Maintenance | ||||
PG&E | Pacific Gas and Electric Company | ||||
PPA | Power Purchase Agreement | ||||
RENOM | Clearway Renewable Operation & Maintenance LLC | ||||
SCE | Southern California Edison | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Senior Notes | Collectively, the 2028 Senior Notes, the 2031 Senior Notes and the 2032 Senior Notes | ||||
SOFR | Secured Overnight Financing Rate | ||||
SPP | Solar Power Partners | ||||
SREC | Solar Renewable Energy Credit | ||||
Tax Act | Tax Cuts and Jobs Act of 2017 | ||||
Thermal Business | The Company’s thermal business, which consists of thermal infrastructure assets that provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental units | ||||
Thermal Disposition | On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR | ||||
TotalEnergies | TotalEnergies SE | ||||
U.S. | United States of America | ||||
Utah Solar Portfolio | Seven utility-scale solar farms located in Utah, representing 530 MW of capacity | ||||
Utility Scale Solar | Solar power projects, typically 20 MW or greater in size (on an alternating current, or AC, basis), that are interconnected into the transmission or distribution grid to sell power at a wholesale level | ||||
VaR | Value at Risk | ||||
VIE | Variable Interest Entity |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Total operating revenues | $ | $ | $ | $ | |||||||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | |||||||||||||||||||||||
Depreciation, amortization and accretion | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Transaction and integration costs | |||||||||||||||||||||||
Development costs | |||||||||||||||||||||||
Total operating costs and expenses | |||||||||||||||||||||||
Gain on sale of business | |||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Loss on debt extinguishment | ( | ( | |||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Total other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income (Loss) Before Income Taxes | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net Income (Loss) | ( | ||||||||||||||||||||||
Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | ( | ( | |||||||||||||||||||||
Net Income Attributable to Clearway Energy, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Earnings Per Share Attributable to Clearway Energy, Inc. Class A and Class C Common Stockholders | |||||||||||||||||||||||
Weighted average number of Class A common shares outstanding - basic and diluted | |||||||||||||||||||||||
Weighted average number of Class C common shares outstanding - basic and diluted | |||||||||||||||||||||||
Earnings per Weighted Average Class A and Class C Common Share - Basic and Diluted | $ | $ | $ | $ | |||||||||||||||||||
Dividends Per Class A Common Share | $ | $ | $ | $ | |||||||||||||||||||
Dividends Per Class C Common Share | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Income (Loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||
Unrealized gain on derivatives, net of income tax expense of, $ | |||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Comprehensive Income (Loss) | ( | ||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | ( | ( | |||||||||||||||||||||
Comprehensive Income Attributable to Clearway Energy, Inc. | $ | $ | $ | $ |
(In millions, except shares) | June 30, 2022 | December 31, 2021 | |||||||||
ASSETS | (Unaudited) | ||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable — trade | |||||||||||
Accounts receivable — affiliates | |||||||||||
Inventory | |||||||||||
Derivative instruments | |||||||||||
Current assets held-for-sale | |||||||||||
Prepayments and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Other Assets | |||||||||||
Equity investments in affiliates | |||||||||||
Intangible assets for power purchase agreements, net | |||||||||||
Other intangible assets, net | |||||||||||
Derivative instruments | |||||||||||
Deferred income taxes | |||||||||||
Right-of-use assets, net | |||||||||||
Other non-current assets | |||||||||||
Total other assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable — trade | |||||||||||
Accounts payable — affiliates | |||||||||||
Derivative instruments | |||||||||||
Accrued interest expense | |||||||||||
Current liabilities held-for-sale | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Other Liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Derivative instruments | |||||||||||
Long-term lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total other liabilities | |||||||||||
Total Liabilities | |||||||||||
Redeemable noncontrolling interest in subsidiaries | |||||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock, $ | |||||||||||
Class A, Class B, Class C and Class D common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings (accumulated deficit) | ( | ||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Noncontrolling interest | |||||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Six months ended June 30, | |||||||||||
(In millions) | 2022 | 2021 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income (Loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | ( | ( | |||||||||
Distributions from unconsolidated affiliates | |||||||||||
Depreciation, amortization and accretion | |||||||||||
Amortization of financing costs and debt discounts | |||||||||||
Amortization of intangibles | |||||||||||
Loss on debt extinguishment | |||||||||||
Gain on sale of business | ( | ||||||||||
Reduction in carrying amount of right-of-use assets | |||||||||||
Changes in deferred income taxes | ( | ||||||||||
Changes in derivative instruments | |||||||||||
Cash used in changes in other working capital: | |||||||||||
Changes in prepaid and accrued liabilities for tolling agreements | ( | ( | |||||||||
Changes in other working capital | ( | ( | |||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Acquisition of Drop Down Assets | ( | ( | |||||||||
Capital expenditures | ( | ( | |||||||||
Asset purchase from affiliate | ( | ||||||||||
Return of investment from unconsolidated affiliates | |||||||||||
Cash receipts from notes receivable | |||||||||||
Proceeds from sale of business | |||||||||||
Other | |||||||||||
Net Cash Provided by (Used in) Investing Activities | ( | ||||||||||
Cash Flows from Financing Activities | |||||||||||
(Distributions to) contributions from noncontrolling interests | ( | ||||||||||
Payments of dividends and distributions | ( | ( | |||||||||
Distributions to CEG of escrowed amounts | ( | ||||||||||
Proceeds from the revolving credit facility | |||||||||||
Payments for the revolving credit facility | ( | ( | |||||||||
Proceeds from the issuance of long-term debt | |||||||||||
Payments of debt issuance costs | ( | ( | |||||||||
Payments for short-term and long-term debt | ( | ( | |||||||||
Other | ( | ||||||||||
Net Cash (Used in) Provided by Financing Activities | ( | ||||||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | |||||||||||
Cash, Cash Equivalents and Restricted Cash at beginning of period | |||||||||||
Cash, Cash Equivalents and Restricted Cash at end of period | $ | $ |
(In millions) | Preferred Stock | Common Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Distributions to CEG, net of contributions, cash | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Mesquite Sky Drop Down | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Black Rock Drop Down | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Mililani I Drop Down | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Distributions to CEG, net of contributions, cash | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(In millions) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Contributions from CEG, non-cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Contributions from CEG, cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Agua Caliente acquisition | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Rattlesnake Drop Down | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on derivatives, net of tax | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Contributions from CEG, non-cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Contributions from CEG, cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Rattlesnake Drop Down | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Non-cash adjustment for change in tax basis | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Property, Plant and Equipment Accumulated Depreciation | $ | $ | |||||||||
Intangible Assets Accumulated Amortization |
Second Quarter 2022 | First Quarter 2022 | |||||||||||||
Dividends per Class A share | $ | $ | ||||||||||||
Dividends per Class C share |
Second Quarter 2022 | First Quarter 2022 | |||||||||||||
Distributions per Class B Unit | $ | $ | ||||||||||||
Distributions per Class D Unit |
(In millions) | ||||||||
Balance as of December 31, 2021 | $ | |||||||
Cash distributions to redeemable noncontrolling interests | ( | |||||||
Comprehensive income attributable to redeemable noncontrolling interests | ||||||||
Balance as of June 30, 2022 | $ |
Three months ended June 30, 2022 | |||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue (a) | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue (a) | |||||||||||||||||||||||
Contract amortization | ( | ( | ( | ||||||||||||||||||||
Other revenue | |||||||||||||||||||||||
Mark-to-market for economic hedges | ( | ( | |||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Less: Mark-to-market for economic hedges | |||||||||||||||||||||||
Less: Lease revenue | ( | ( | ( | ||||||||||||||||||||
Less: Contract amortization | |||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three months ended June 30, 2021 | |||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue (a) | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue (a) | |||||||||||||||||||||||
Contract amortization | ( | ( | ( | ( | |||||||||||||||||||
Other revenue | |||||||||||||||||||||||
Mark-to-market for economic hedges | ( | ( | |||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Less: Mark-to-market for economic hedges | |||||||||||||||||||||||
Less: Lease revenue | ( | ( | ( | ||||||||||||||||||||
Less: Contract amortization | |||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ |
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Six months ended June 30, 2022 | |||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue (a) | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue (a) | |||||||||||||||||||||||
Contract amortization | ( | ( | ( | ||||||||||||||||||||
Other revenue | |||||||||||||||||||||||
Mark-to-market for economic hedges | ( | ( | |||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Less: Mark-to-market for economic hedges | |||||||||||||||||||||||
Less: Lease revenue | ( | ( | ( | ( | |||||||||||||||||||
Less: Contract amortization | |||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Six months ended June 30, 2021 | |||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue (a) | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue (a) | |||||||||||||||||||||||
Contract amortization | ( | ( | ( | ( | |||||||||||||||||||
Other revenue | |||||||||||||||||||||||
Mark-to-market for economic hedges | ( | ( | |||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Less: Mark-to-market for economic hedges | |||||||||||||||||||||||
Less: Lease revenue | ( | ( | ( | ( | |||||||||||||||||||
Less: Contract amortization | |||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ |
(In millions) | Conventional Generation | Renewables | Thermal | Total | |||||||||||||||||||
Energy revenue | $ | $ | $ | $ | |||||||||||||||||||
Capacity revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Accounts receivable, net - Contracts with customers | $ | $ | |||||||||
Accounts receivable, net - Leases | |||||||||||
Total accounts receivable, net | $ | $ |
(In millions) | Mililani I | |||||||
Other current and non-current assets | $ | |||||||
Property, plant and equipment | ||||||||
Right-of-use-assets | ||||||||
Total assets acquired | ||||||||
Long-term debt (a) | ||||||||
Long-term lease liabilities | ||||||||
Other current and non-current liabilities | ||||||||
Total liabilities assumed | ||||||||
Net liabilities assumed | $ | ( |
(In millions) | Alta TE Holdco | Buckthorn Renewables, LLC | DGPV Funds(a) | Kawailoa Partnership | Langford TE Partnership LLC | Lighthouse Renewable Holdco LLC (b) | Lighthouse Renewable Holdco 2 LLC (c) | ||||||||||||||||||||||||||||||||||
Other current and non-current assets | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||||||||||||||
Current and non-current liabilities | |||||||||||||||||||||||||||||||||||||||||
Total liabilities | |||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||
Net assets less noncontrolling interests | $ | $ | $ | $ | $ | $ | $ |
(In millions) | Oahu Solar Partnership | Pinnacle Repowering Partnership LLC | Rattlesnake TE Holdco LLC | Rosie TargetCo LLC | Wildorado TE Holdco | Other (a) | |||||||||||||||||||||||||||||
Other current and non-current assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||||||||
Current and non-current liabilities | |||||||||||||||||||||||||||||||||||
Total liabilities | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | |||||||||||||||||||||||||||||||||||
Net assets less noncontrolling interests | $ | $ | $ | $ | $ | $ |
Name | Economic Interest | Investment Balance | ||||||
(In millions) | ||||||||
Avenal | $ | |||||||
Desert Sunlight | ||||||||
Elkhorn Ridge | ||||||||
GenConn (a) | ||||||||
San Juan Mesa | ||||||||
$ |
As of June 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Long-term debt, including current portion (a) | $ | $ | $ | $ |
As of June 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Long-term debt, including current portion | $ | $ | $ | $ |
As of June 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||
Fair Value (a) | Fair Value (a) | ||||||||||||||||||||||
(In millions) | Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||
Interest rate contracts | $ | $ | $ | $ | |||||||||||||||||||
Other financial instruments (b) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | |||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Total losses for the period included in earnings | ( | ( | ( | ( | ||||||||||||||||||||||
Additions due to loss of NPNS exception | ( | |||||||||||||||||||||||||
Purchases | ( | ( | ||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of June 30, 2022 | $ | ( | $ | ( |
June 30, 2022 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Commodity Contracts | $ | $ | Discounted Cash Flow | Forward Market Price (per MWh) | $ | $ | $ | ||||||||||||||||
Other Financial Instruments | Discounted Cash Flow | Forecast annual generation levels of certain DG solar facilities |
Significant Unobservable Input | Position | Change In Input | Impact on Fair Value Measurement | ||||||||
Forward Market Price Power | Sell | Increase/(Decrease) | Lower/(Higher) | ||||||||
Forecast Generation Levels | Sell | Increase/(Decrease) | Higher/(Lower) |
Total Volume | |||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
Commodity | Units | (In millions) | |||||||||||||||
Natural Gas | MMBtu | ||||||||||||||||
Power | MWh | ( | ( | ||||||||||||||
Interest | Dollars | $ | $ | ||||||||||||||
Fair Value | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges: | |||||||||||||||||||||||
Interest rate contracts current | $ | $ | $ | $ | |||||||||||||||||||
Interest rate contracts long-term | |||||||||||||||||||||||
Total Derivatives Designated as Cash Flow Hedges | $ | $ | $ | $ | |||||||||||||||||||
Derivatives Not Designated as Cash Flow Hedges: | |||||||||||||||||||||||
Interest rate contracts current | $ | $ | $ | $ | |||||||||||||||||||
Interest rate contracts long-term | |||||||||||||||||||||||
Commodity contracts current | |||||||||||||||||||||||
Commodity contracts long-term | |||||||||||||||||||||||
Total Derivatives Not Designated as Cash Flow Hedges | $ | $ | $ | $ | |||||||||||||||||||
Total Derivatives | $ | $ | $ | $ |
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||
As of June 30, 2022 | Gross Amounts of Recognized Assets/Liabilities | Derivative Instruments | Net Amount | ||||||||||||||
Commodity contracts | (In millions) | ||||||||||||||||
Derivative liabilities | $ | ( | $ | $ | ( | ||||||||||||
Total commodity contracts | $ | ( | $ | $ | ( | ||||||||||||
Interest rate contracts | |||||||||||||||||
Derivative assets | $ | $ | ( | $ | |||||||||||||
Derivative liabilities | ( | ||||||||||||||||
Total interest rate contracts | $ | $ | $ | ||||||||||||||
Total derivative instruments | $ | ( | $ | $ | ( |
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 | $ | ( | $ | $ | ( | ||||||||||||
Total commodity contracts | $ | ( | $ | $ | ( | ||||||||||||
Interest rate contracts: | |||||||||||||||||
Derivative assets | $ | $ | ( | $ | |||||||||||||
Derivative liabilities | ( | ( | |||||||||||||||
Total interest rate contracts | $ | ( | $ | $ | ( | ||||||||||||
Total derivative instruments | $ | ( | $ | $ | ( |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Accumulated OCI (OCL) beginning balance | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Reclassified from accumulated OCI (OCL) to income due to realization of previously deferred amounts | |||||||||||||||||||||||
Mark-to-market of cash flow hedge accounting contracts | ( | ||||||||||||||||||||||
Accumulated OCI (OCL) ending balance, net of income tax (benefit) expense of $ | ( | ( | |||||||||||||||||||||
Accumulated OCI (OCL) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
Accumulated OCI (OCL) attributable to Clearway Energy, Inc. | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Losses expected to be realized from OCI during the next 12 months, net of income tax benefit of $ | $ | ( | $ | ( |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Interest Rate Contracts (Interest expense) | $ | $ | ( | $ | $ | ||||||||||||||||||
Commodity Contracts (Mark-to-market for economic hedging activities) (a) | ( | ( | ( | ( |
(In millions, except rates) | June 30, 2022 | December 31, 2021 | June 30, 2022 interest rate % (a) | Letters of Credit Outstanding at June 30, 2022 | |||||||||||||||||||
2028 Senior Notes | $ | $ | |||||||||||||||||||||
2031 Senior Notes | |||||||||||||||||||||||
2032 Senior Notes | |||||||||||||||||||||||
Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility, due 2023 (b) | L+ | $ | |||||||||||||||||||||
Bridge Loan, due 2022 (c) | S+ | ||||||||||||||||||||||
Project-level debt: | |||||||||||||||||||||||
Agua Caliente Solar LLC, due 2037 | |||||||||||||||||||||||
Alta Wind Asset Management LLC, due 2031 | L+ | ||||||||||||||||||||||
Alta Wind I-V lease financing arrangements, due 2034 and 2035 | |||||||||||||||||||||||
Alta Wind Realty Investments LLC, due 2031 | |||||||||||||||||||||||
Borrego, due 2024 and 2038 | Various | ||||||||||||||||||||||
Buckthorn Solar, due 2025 | L+ | ||||||||||||||||||||||
Carlsbad Energy Holdings LLC, due 2027 | L+ | ||||||||||||||||||||||
Carlsbad Energy Holdings LLC, due 2038 | |||||||||||||||||||||||
Carlsbad Holdco, due 2038 | |||||||||||||||||||||||
CVSR, due 2037 | |||||||||||||||||||||||
CVSR Holdco Notes, due 2037 | |||||||||||||||||||||||
DG-CS Master Borrower LLC, due 2040 | |||||||||||||||||||||||
El Segundo Energy Center, due 2023 | L+ | ||||||||||||||||||||||
Kawailoa Solar Portfolio LLC, due 2026 | L+ | ||||||||||||||||||||||
Laredo Ridge, due 2028 (d) | L+ | ||||||||||||||||||||||
Marsh Landing, due 2023 | L+ | ||||||||||||||||||||||
Mililani I, due 2022 and 2024 | L+ | ||||||||||||||||||||||
NIMH Solar, due 2024 | L+ | ||||||||||||||||||||||
Oahu Solar Holdings LLC, due 2026 | L+ | ||||||||||||||||||||||
Rosie Class B LLC, due 2027 | L+ | ||||||||||||||||||||||
Tapestry Wind LLC, due 2031 (d) | L+ | ||||||||||||||||||||||
Utah Solar Holdings, due 2036 | |||||||||||||||||||||||
Viento Funding II, LLC, due 2023 and 2029 (d) | S+ | ||||||||||||||||||||||
Walnut Creek, due 2023 | L+ | ||||||||||||||||||||||
WCEP Holdings, LLC, due 2023 | L+ | ||||||||||||||||||||||
Other | Various | ||||||||||||||||||||||
Subtotal project-level debt: | |||||||||||||||||||||||
Total debt | |||||||||||||||||||||||
Less current maturities | ( | ( | |||||||||||||||||||||
Less net debt issuance costs | ( | ( | |||||||||||||||||||||
Add premiums (e) | |||||||||||||||||||||||
Total long-term debt | $ | $ |
Three months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(In millions, except per share data) (a) | Common Class A | Common Class C | Common Class A | Common Class C | |||||||||||||||||||
Basic and diluted earnings per share attributable to Clearway Energy, Inc. common stockholders | |||||||||||||||||||||||
Net income attributable to Clearway Energy, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares outstanding — basic and diluted | |||||||||||||||||||||||
Earnings per weighted average common share — basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(In millions, except per share data) (a) | Common Class A | Common Class C | Common Class A | Common Class C | |||||||||||||||||||
Basic and diluted earnings per share attributable to Clearway Energy, Inc. common stockholders | |||||||||||||||||||||||
Net income attributable to Clearway Energy, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares outstanding — basic and diluted | |||||||||||||||||||||||
Earnings per weighted average common share — basic and diluted | $ | $ | $ | $ |
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal (a) | Corporate (b) | Total | ||||||||||||||||||||||||
Operating revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | |||||||||||||||||||||||||||||
Depreciation, amortization and accretion | |||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||
Transaction and integration costs | |||||||||||||||||||||||||||||
Development costs | |||||||||||||||||||||||||||||
Total operating costs and expenses | |||||||||||||||||||||||||||||
Gain on sale of business | |||||||||||||||||||||||||||||
Operating income | |||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Net Income | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total Assets (a) |
Three months ended June 30, 2021 | |||||||||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Corporate | Total | ||||||||||||||||||||||||
Operating revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | ( | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion | |||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||
Transaction and integration costs | |||||||||||||||||||||||||||||
Development costs | |||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||||||||
Other (expense) income, net | ( | ||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | $ | $ | $ | ( | $ |
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal (a) | Corporate (b) | Total | ||||||||||||||||||||||||
Operating revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | |||||||||||||||||||||||||||||
Depreciation, amortization and accretion | |||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||
Transaction and integration costs | |||||||||||||||||||||||||||||
Development costs | |||||||||||||||||||||||||||||
Total operating costs and expenses | |||||||||||||||||||||||||||||
Gain on sale of business | |||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||||||||
Loss on debt extinguishment | ( | ( | |||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||
(In millions) | Conventional Generation | Renewables | Thermal | Corporate | Total | ||||||||||||||||||||||||
Operating revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | ( | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion | |||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||
Transaction and integration costs | |||||||||||||||||||||||||||||
Development costs | |||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||||||||
Loss on debt extinguishment | ( | ( | ( | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | ||||||||||||||||||||||||||
Income tax benefit | ( | ( | |||||||||||||||||||||||||||
Net Income (Loss) | $ | $ | ( | $ | $ | ( | $ | ( |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | $ | ( | ||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Effective income tax rate | % | % | % | % |
Projects | Percentage Ownership | Net Capacity (MW) (a) | Counterparty | Expiration | ||||||||||||||||||||||
Conventional | ||||||||||||||||||||||||||
Carlsbad | 100 | % | 527 | San Diego Gas & Electric | 2038 | |||||||||||||||||||||
El Segundo | 100 | % | 550 | SCE | 2023 | |||||||||||||||||||||
GenConn Devon | 50 | % | 95 | Connecticut Light & Power | 2040 | |||||||||||||||||||||
GenConn Middletown | 50 | % | 95 | Connecticut Light & Power | 2041 | |||||||||||||||||||||
Marsh Landing | 100 | % | 720 | Various | 2023 - 2030 | |||||||||||||||||||||
Walnut Creek | 100 | % | 485 | SCE | 2023 - 2026 | |||||||||||||||||||||
Total Conventional | 2,472 | |||||||||||||||||||||||||
Utility Scale Solar | ||||||||||||||||||||||||||
Agua Caliente | 51 | % | 148 | PG&E | 2039 | |||||||||||||||||||||
Alpine | 100 | % | 66 | PG&E | 2033 | |||||||||||||||||||||
Avenal | 50 | % | 23 | PG&E | 2031 | |||||||||||||||||||||
Avra Valley | 100 | % | 27 | Tucson Electric Power | 2032 | |||||||||||||||||||||
Blythe | 100 | % | 21 | SCE | 2029 | |||||||||||||||||||||
Borrego | 100 | % | 26 | San Diego Gas and Electric | 2038 | |||||||||||||||||||||
Buckthorn Solar (b) | 100 | % | 154 | City of Georgetown, TX | 2043 | |||||||||||||||||||||
CVSR | 100 | % | 250 | PG&E | 2038 | |||||||||||||||||||||
Desert Sunlight 250 | 25 | % | 63 | SCE | 2034 | |||||||||||||||||||||
Desert Sunlight 300 | 25 | % | 75 | PG&E | 2039 | |||||||||||||||||||||
Kansas South | 100 | % | 20 | PG&E | 2033 | |||||||||||||||||||||
Kawailoa (b) | 48 | % | 24 | Hawaiian Electric Company | 2041 | |||||||||||||||||||||
Oahu Solar Projects (b) | 95 | % | 58 | Hawaiian Electric Company | 2041 | |||||||||||||||||||||
Roadrunner | 100 | % | 20 | El Paso Electric | 2031 | |||||||||||||||||||||
Rosamond Central (b) | 50 | % | 96 | Various | 2035 - 2047 | |||||||||||||||||||||
TA High Desert | 100 | % | 20 | SCE | 2033 | |||||||||||||||||||||
Utah Solar Portfolio | 100 | % | 530 | PacifiCorp | 2036 | |||||||||||||||||||||
Total Utility Scale Solar | 1,621 | |||||||||||||||||||||||||
Distributed Solar | ||||||||||||||||||||||||||
DGPV Fund Projects (b) | 100 | % | 286 | Various | 2030 - 2044 | |||||||||||||||||||||
Solar Power Partners (SPP) Projects | 100 | % | 25 | Various | 2026 - 2037 | |||||||||||||||||||||
Other DG Projects | 100 | % | 21 | Various | 2023 - 2039 | |||||||||||||||||||||
Total Distributed Solar | 332 |
Projects | Percentage Ownership | Net Capacity (MW) (a) | Counterparty | Expiration | ||||||||||||||||||||||
Wind | ||||||||||||||||||||||||||
Alta I | 100 | % | 150 | SCE | 2035 | |||||||||||||||||||||
Alta II | 100 | % | 150 | SCE | 2035 | |||||||||||||||||||||
Alta III | 100 | % | 150 | SCE | 2035 | |||||||||||||||||||||
Alta IV | 100 | % | 102 | SCE | 2035 | |||||||||||||||||||||
Alta V | 100 | % | 168 | SCE | 2035 | |||||||||||||||||||||
Alta X (b) | 100 | % | 137 | SCE | 2038 | |||||||||||||||||||||
Alta XI (b) | 100 | % | 90 | SCE | 2038 | |||||||||||||||||||||
Black Rock (b) | 50 | % | 58 | Toyota and AEP | 2036 | |||||||||||||||||||||
Buffalo Bear | 100 | % | 19 | Western Farmers Electric Co-operative | 2033 | |||||||||||||||||||||
Crosswinds | 99 | % | 21 | Corn Belt Power Cooperative | 2027 | |||||||||||||||||||||
Elbow Creek (b) | 100 | % | 122 | Various | 2029 | |||||||||||||||||||||
Elkhorn Ridge | 66.7 | % | 54 | Nebraska Public Power District | 2029 | |||||||||||||||||||||
Forward | 100 | % | 29 | Constellation NewEnergy, Inc. | 2022 | |||||||||||||||||||||
Goat Wind | 100 | % | 150 | Dow Pipeline Company | 2025 | |||||||||||||||||||||
Hardin | 99 | % | 15 | Interstate Power and Light Company | 2027 | |||||||||||||||||||||
Langford (b) | 100 | % | 160 | Goldman Sachs | 2033 | |||||||||||||||||||||
Laredo Ridge | 100 | % | 81 | Nebraska Public Power District | 2031 | |||||||||||||||||||||
Lookout (b) | 100 | % | 38 | Southern Maryland Electric Cooperative | 2030 | |||||||||||||||||||||
Mesquite Sky (b) | 50 | % | 170 | Various | 2033 - 2036 | |||||||||||||||||||||
Mesquite Star (b) | 50 | % | 210 | Various | 2032 - 2035 | |||||||||||||||||||||
Mt. Storm | 100 | % | 264 | Citigroup | 2031 | |||||||||||||||||||||
Ocotillo | 100 | % | 59 | N/A | ||||||||||||||||||||||
Odin | 99.9 | % | 21 | Missouri River Energy Services | 2028 | |||||||||||||||||||||
Pinnacle (b) | 100 | % | 54 | Maryland Department of General Services and University System of Maryland | 2031 | |||||||||||||||||||||
Rattlesnake (b) (c) | 100 | % | 160 | Avista Corporation | 2040 | |||||||||||||||||||||
San Juan Mesa | 75 | % | 90 | Southwestern Public Service Company | 2025 | |||||||||||||||||||||
Sleeping Bear | 100 | % | 95 | Public Service Company of Oklahoma | 2032 | |||||||||||||||||||||
South Trent | 100 | % | 101 | AEP Energy Partners | 2029 | |||||||||||||||||||||
Spanish Fork | 100 | % | 19 | PacifiCorp | 2028 | |||||||||||||||||||||
Spring Canyon II (b) | 90.1 | % | 31 | Platte River Power Authority | 2039 | |||||||||||||||||||||
Spring Canyon III (b) | 90.1 | % | 26 | Platte River Power Authority | 2039 | |||||||||||||||||||||
Taloga | 100 | % | 130 | Oklahoma Gas & Electric | 2031 | |||||||||||||||||||||
Wildorado (b) | 100 | % | 161 | Southwestern Public Service Company | 2027 | |||||||||||||||||||||
Total Wind | 3,285 | |||||||||||||||||||||||||
Total net generation capacity | 7,710 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(In millions) | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||||||||
Energy and capacity revenues | $ | 431 | $ | 420 | $ | 11 | $ | 791 | $ | 696 | $ | 95 | |||||||||||||||||||||||
Other revenues | 30 | 28 | 2 | 52 | 45 | 7 | |||||||||||||||||||||||||||||
Contract amortization | (41) | (37) | (4) | (83) | (69) | (14) | |||||||||||||||||||||||||||||
Mark-to-market for economic hedges | (52) | (31) | (21) | (178) | (55) | (123) | |||||||||||||||||||||||||||||
Total operating revenues | 368 | 380 | (12) | 582 | 617 | (35) | |||||||||||||||||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||||||||||||||
Cost of fuels | 7 | 16 | (9) | 29 | 35 | (6) | |||||||||||||||||||||||||||||
Operations and maintenance | 76 | 69 | 7 | 152 | 137 | 15 | |||||||||||||||||||||||||||||
Other costs of operations | 29 | 22 | 7 | 59 | 45 | 14 | |||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 126 | 128 | (2) | 250 | 256 | (6) | |||||||||||||||||||||||||||||
General and administrative | 11 | 10 | 1 | 23 | 20 | 3 | |||||||||||||||||||||||||||||
Transaction and integration costs | 3 | 1 | 2 | 5 | 3 | 2 | |||||||||||||||||||||||||||||
Development costs | 1 | 1 | — | 2 | 2 | — | |||||||||||||||||||||||||||||
Total operating costs and expenses | 253 | 247 | 6 | 520 | 498 | 22 | |||||||||||||||||||||||||||||
Gain on sale of business | 1,291 | — | 1,291 | 1,291 | — | 1,291 | |||||||||||||||||||||||||||||
Operating Income | 1,406 | 133 | 1,273 | 1,353 | 119 | 1,234 | |||||||||||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 10 | 8 | 2 | 14 | 12 | 2 | |||||||||||||||||||||||||||||
Other income, net | 5 | 1 | 4 | 5 | 2 | 3 | |||||||||||||||||||||||||||||
Loss on debt extinguishment | — | — | — | (2) | (42) | 40 | |||||||||||||||||||||||||||||
Derivative interest income (expense) | 36 | (11) | 47 | 77 | 36 | 41 | |||||||||||||||||||||||||||||
Other interest expense | (83) | (92) | 9 | (171) | (184) | 13 | |||||||||||||||||||||||||||||
Total other expense, net | (32) | (94) | 62 | (77) | (176) | 99 | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes | 1,374 | 39 | 1,335 | 1,276 | (57) | 1,333 | |||||||||||||||||||||||||||||
Income tax expense (benefit) | 225 | 7 | 218 | 224 | (13) | 237 | |||||||||||||||||||||||||||||
Net Income (Loss) | 1,149 | 32 | 1,117 | 1,052 | (44) | 1,096 | |||||||||||||||||||||||||||||
Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | 579 | (3) | 582 | 514 | (82) | 596 | |||||||||||||||||||||||||||||
Net Income Attributable to Clearway Energy, Inc. | $ | 570 | $ | 35 | $ | 535 | $ | 538 | $ | 38 | $ | 500 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
Business metrics: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Renewables MWh generated/sold (in thousands) (a) | 4,416 | 3,370 | 7,735 | 5,900 | |||||||||||||||||||
Thermal MWt sold (in thousands) (b) | 183 | 457 | 835 | 1,068 | |||||||||||||||||||
Thermal MWh sold (in thousands) (b) | 5 | 13 | 19 | 26 | |||||||||||||||||||
Conventional MWh generated (in thousands) (a) (c) | 289 | 282 | 421 | 447 | |||||||||||||||||||
Conventional equivalent availability factor | 88.3 | % | 97.2 | % | 91.8 | % | 90.2 | % |
(In millions) | ||||||||
Renewables Segment | Increase primarily due to the acquisitions of the Utah Solar Portfolio in December 2021 and Mt. Storm in April 2021, along with increased wind generation at Alta and various other wind facilities | $ | 51 | |||||
Conventional Segment | Decrease driven by the timing of annual planned maintenance outages at the El Segundo facility | (6) | ||||||
Thermal Segment | Decrease primarily driven by the sale of the Thermal Business on May 1, 2022 | (32) | ||||||
Mark-to-market for economic hedges | Increase in unrealized losses from changes in the fair value of commodity contracts, primarily driven by the 2021 acquisitions of Mesquite Sky and Mt. Storm and the mark-to-market of the Langford commodity contract, which previously qualified for the NPNS exception | (21) | ||||||
Contract amortization | Increase primarily driven by amortization of the intangible assets for power purchase agreements related to the 2021 acquisition of the Utah Solar Portfolio | (4) | ||||||
$ | (12) |
(In millions) | ||||||||
Renewables Segment | Increase primarily from the 2021 acquisitions of the Utah Solar Portfolio, Mesquite Sky, Black Rock and Mt. Storm. | $ | 10 | |||||
Conventional Segment | Increase primarily driven by the timing of the annual planned maintenance outages at El Segundo | 5 | ||||||
Thermal Segment | Decrease primarily driven by the sale of the Thermal Business on May 1, 2022 | (8) | ||||||
$ | 7 |
(In millions) | ||||||||
Change in fair value of interest rate swaps | $ | (48) | ||||||
Decrease in interest expense due to decreased principal balances of project-level debt | (5) | |||||||
Decrease in interest due to the sale of the Thermal Business on May 1, 2022 | (3) | |||||||
$ | (56) |
(In millions) | ||||||||
CEG’s economic interest in Clearway Energy LLC (primarily driven by the gain on sale of the Thermal Business) | $ | 585 | ||||||
Losses attributable to tax equity financing arrangements and the application of HLBV | (6) | |||||||
$ | 579 |
(In millions) | ||||||||
Losses attributable to tax equity financing arrangements and the application of HLBV | $ | (36) | ||||||
CEG’s economic interest in Clearway Energy LLC | 32 | |||||||
Income attributable to third-party partnerships | 1 | |||||||
$ | (3) |
(In millions) | ||||||||
Renewables Segment | Increase due to a loss of $50 million in February 2021 related to net settlements of obligations for wind facilities that were unable to produce the required output during extreme weather conditions in Texas, as well as the 2021 acquisitions of the Utah Solar Portfolio, Agua Caliente, Mesquite Sky, Black Rock and Mt. Storm | $ | 125 | |||||
Thermal Segment | Decrease due to the sale of the Thermal business on May 1, 2022 | (23) | ||||||
Mark-to-market economic hedging activities | Increase in unrealized losses from changes in the fair value of commodity contracts, primarily driven by an increase in forward power prices in the ERCOT and PJM markets, as well as the 2021 acquisitions of Mt. Storm and Mesquite Sky and the mark-to-market of the Langford commodity contract, which previously qualified for the NPNS exception | (123) | ||||||
Contract amortization | Increase primarily driven by amortization of the intangible assets for power purchase agreements related to the 2021 acquisitions of Agua Caliente and the Utah Solar Portfolio | (14) | ||||||
$ | (35) |
(In millions) | ||||||||
Change in fair value of interest rate swaps | $ | (43) | ||||||
Decrease in interest expense due to decreased principal balances of project-level debt | (9) | |||||||
Decrease in interest expense due to the sale of the Thermal Business on May 1, 2022 | (3) | |||||||
Amortization of deferred financing costs related to the Bridge Loan that was entered into during the fourth quarter of 2021 and paid in full on May 3, 2022 | 1 | |||||||
$ | (54) |
(In millions) | ||||||||
CEG’s economic interest in Clearway Energy LLC (primarily driven by the gain on sale of the Thermal Business) | $ | 560 | ||||||
Losses attributable to tax equity financing arrangements and the application of HLBV | (24) | |||||||
Losses attributable to third-party partnerships | (22) | |||||||
$ | 514 |
(In millions) | ||||||||
Losses attributable to tax equity financing arrangements and the application of HLBV | $ | (77) | ||||||
Losses attributable to third-party partnerships | (25) | |||||||
CEG’s economic interest in Clearway Energy LLC | 20 | |||||||
$ | (82) |
(In millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Cash and cash equivalents: | ||||||||||||||
Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries | $ | 820 | $ | 33 | ||||||||||
Subsidiaries | 135 | 146 | ||||||||||||
Restricted cash: | ||||||||||||||
Operating accounts | 143 | 246 | ||||||||||||
Reserves, including debt service, distributions, performance obligations and other reserves | 190 | 229 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 1,288 | $ | 654 | ||||||||||
Revolving credit facility availability | 408 | 167 | ||||||||||||
Total liquidity | $ | 1,696 | $ | 821 |
S&P | Moody’s | ||||||||||
Clearway Energy, Inc. | BB | Ba2 | |||||||||
4.750% Senior Notes, due 2028 | BB | Ba2 | |||||||||
3.750% Senior Notes, due 2031 | BB | Ba2 | |||||||||
3.750% Senior Notes, due 2032 | BB | Ba2 |
Second Quarter 2022 | First Quarter 2022 | |||||||||||||
Dividends per Class A share | $ | 0.3536 | $ | 0.3468 | ||||||||||
Dividends per Class C share | 0.3536 | 0.3468 |
Six months ended June 30, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
(In millions) | |||||||||||||||||
Net cash provided by operating activities | $ | 279 | $ | 241 | $ | 38 | |||||||||||
Net cash provided by (used in) investing activities | 1,331 | (420) | 1,751 | ||||||||||||||
Net cash (used in) provided by financing activities | (976) | 184 | (1,160) |
Changes to net cash provided by operating activities were driven by: | (In millions) | ||||
Increase in operating income adjusted for non-cash items | $ | 53 | |||
Increase in working capital primarily driven by the timing of accounts receivable collections and payments of accounts payable | 2 | ||||
Increase in distributions from unconsolidated affiliates | 1 | ||||
Transaction expenses paid on May 1, 2022 in connection with the sale of the Thermal Business | (18) | ||||
$ | 38 | ||||
Changes to net cash provided by (used in) investing activities were driven by: | (In millions) | ||||
Proceeds from the sale of the Thermal Business | $ | 1,457 | |||
Cash paid for Agua Caliente, net of cash acquired, in 2021 | 211 | ||||
Decrease in cash paid for Drop Down assets | 81 | ||||
Cash paid to CEG in 2021 for equipment for the Pinnacle wind project repowering | 21 | ||||
Decrease in capital expenditures | 12 | ||||
Decrease in the return of investment from unconsolidated affiliates | (14) | ||||
Other | (17) | ||||
$ | 1,751 | ||||
Changes in net cash (used in) provided by financing activities were driven by: | (In millions) | ||||
Decrease in proceeds from the issuance of long-term debt, net of payments | $ | (496) | |||
Decrease in proceeds from the revolving credit facility, net of payments | (312) | ||||
Decrease in contributions from noncontrolling interest members, net of distributions | (272) | ||||
Cash released from escrow distributed to CEG in 2022 | (64) | ||||
Increase in dividends paid to common stockholders and distributions paid to CEG unit holders | (9) | ||||
Other | (7) | ||||
$ | (1,160) | ||||
Derivative Activity (Losses) Gains | (In millions) | ||||
Fair value of contracts as of December 31, 2021 | $ | (236) | |||
Contracts realized or otherwise settled during the period | 38 | ||||
Contracts acquired during the period | (4) | ||||
Contracts added due to loss of NPNS exception | (22) | ||||
Changes in fair value | (87) | ||||
Fair value of contracts as of June 30, 2022 | $ | (311) |
Fair value of contracts as of June 30, 2022 | |||||||||||||||||||||||||||||
Maturity | |||||||||||||||||||||||||||||
Fair Value Hierarchy (Losses) Gains | 1 Year or Less | Greater Than 1 Year to 3 Years | Greater Than 3 Years to 5 Years | Greater Than 5 Years | Total Fair Value | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Level 2 | $ | 8 | $ | 20 | $ | 6 | $ | 8 | $ | 42 | |||||||||||||||||||
Level 3 | (74) | (89) | (68) | (122) | (353) | ||||||||||||||||||||||||
Total | $ | (66) | $ | (69) | $ | (62) | $ | (114) | $ | (311) |
Number | Description | Method of Filing | ||||||||||||
4.1 | Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 1, 2022. | |||||||||||||
4.2 | Incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on June 1, 2022. | |||||||||||||
4.3 | Incorporated herein by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed on June 1, 2022. | |||||||||||||
31.1 | Filed herewith. | |||||||||||||
31.2 | Filed herewith. | |||||||||||||
31.3 | Filed herewith. | |||||||||||||
32 | Furnished herewith. | |||||||||||||
101 INS | Inline XBRL Instance Document. | Filed herewith. | ||||||||||||
101 SCH | Inline XBRL Taxonomy Extension Schema. | Filed herewith. | ||||||||||||
101 CAL | Inline XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||||||||||||
101 DEF | Inline XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||||||||||||
101 LAB | Inline XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||||||||||||
101 PRE | Inline XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. | ||||||||||||
104 | Cover Page Interactive Data File (the cover page interactive data file does not appear in Exhibit 104 because its Inline XBRL tags are embedded within the Inline XBRL document). | Filed herewith. |
CLEARWAY ENERGY, INC. (Registrant) | ||||||||||||||
/s/ CHRISTOPHER S. SOTOS | ||||||||||||||
Christopher S. Sotos | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
/s/ CHAD PLOTKIN | ||||||||||||||
Chad Plotkin | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
/s/ SARAH RUBENSTEIN | ||||||||||||||
Sarah Rubenstein | ||||||||||||||
Date: August 2, 2022 | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | |||||||||||||
/s/ CHRISTOPHER S. SOTOS | |||||
Christopher S. Sotos President and Chief Executive Officer (Principal Executive Officer) |
/s/ CHAD PLOTKIN | |||||
Chad Plotkin Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
/s/ SARAH RUBENSTEIN | |||||
Sarah Rubenstein Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
/s/ CHRISTOPHER S. SOTOS | ||||||||||||||
Christopher S. Sotos | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
/s/ CHAD PLOTKIN | ||||||||||||||
Chad Plotkin | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
/s/ SARAH RUBENSTEIN | ||||||||||||||
Sarah Rubenstein | ||||||||||||||
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 1,149 | $ 32 | $ 1,052 | $ (44) |
Other Comprehensive Income | ||||
Unrealized gain on derivatives, net of income tax expense of, $1, $— ,$3 and $2 | 6 | 0 | 20 | 11 |
Other comprehensive income | 6 | 0 | 20 | 11 |
Comprehensive Income (Loss) | 1,155 | 32 | 1,072 | (33) |
Less: Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | 583 | (3) | 526 | (75) |
Comprehensive Income Attributable to Clearway Energy, Inc. | $ 572 | $ 35 | $ 546 | $ 42 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized loss on derivatives income tax expense (benefit) | $ 1 | $ 0 | $ 3 | $ 2 |
Nature of Business |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Clearway Energy, Inc., together with its consolidated subsidiaries, or the Company, is a publicly-traded energy infrastructure investor in and owner of modern, sustainable and long-term contracted assets across North America. The Company is indirectly owned by Global Infrastructure Partners, or GIP. GIP is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. The Company is sponsored by GIP through GIP’s portfolio company, Clearway Energy Group LLC, or CEG. On May 25, 2022, TotalEnergies entered into an agreement to acquire 50% of GIP’s interest in CEG. The closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to close in the second half of 2022. The Company is one of the largest renewable energy owners in the U.S. with over 5,000 net MW of installed wind and solar generation projects. The Company’s over 7,500 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 provide its investors with stable and growing dividend income. Substantially all of the Company’s generation assets are under long-term contractual arrangements for the output or capacity from these assets. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions. The Company consolidates the results of Clearway Energy LLC through its controlling interest, with CEG’s interest shown as non-controlling interest in the consolidated financial statements. The holders of the Company’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 the Company’s Class A and/or Class C common stock. The Company owned 57.74% of the economic interests of Clearway Energy LLC, with CEG owning 42.26% of the economic interests of Clearway Energy LLC as of June 30, 2022. The following table represents the structure of the Company as of June 30, 2022: ![]() Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the SEC’s regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company’s consolidated financial position as of June 30, 2022, and results of operations, comprehensive income and cash flows for the three and six months ended June 30, 2022 and 2021.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amounts of net earnings during the reporting periods. Actual results could be different from these estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include highly liquid investments with an original maturity of three months or less at the time of purchase. Cash and cash equivalents held at project subsidiaries was $135 million and $146 million as of June 30, 2022 and December 31, 2021, respectively. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
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 June 30, 2022, these restricted funds were comprised of $143 million designated to fund operating expenses, $42 million designated for current debt service payments and $122 million restricted for reserves including debt service, performance obligations and other reserves as well as capital expenditures. The remaining $26 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 $49 million to the Oahu Solar and Kawailoa project companies, which was 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. As of June 30, 2022, $30 million of the $49 million has been utilized to offset invoiced amounts under the projects’ PPAs. Accumulated Depreciation and Accumulated Amortization The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net as of June 30, 2022 and December 31, 2021:
Dividends to Class A and Class C Common Stockholders The following table lists the dividends paid on the Company's Class A and Class C common stock during the six months ended June 30, 2022:
Dividends on the Class A and Class C common stock are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations. The Company expects that, based on current circumstances, comparable cash dividends will continue to be paid in the foreseeable future. On August 1, 2022, the Company declared quarterly dividends on its Class A and Class C common stock of $0.3604 per share payable on September 15, 2022 to stockholders of record as of September 1, 2022. Noncontrolling Interests Clearway Energy LLC Distributions to CEG The following table lists distributions paid to CEG during the six months ended June 30, 2022 on Clearway Energy LLC’s Class B and D units:
On August 1, 2022, Clearway Energy LLC declared a distribution on its Class B and Class D units of $0.3604 per unit payable on September 15, 2022 to unit holders of record as of September 1, 2022. Redeemable Noncontrolling Interests To the extent that a third party has the right to redeem their interests for cash or other assets, the Company has included the noncontrolling interest attributable to the third party as a component of temporary equity in the mezzanine section of the consolidated balance sheet. The following table reflects the changes in the Company’s redeemable noncontrolling interest balance for the six months ended June 30, 2022:
Revenue Recognition Revenue from Contracts with Customers The Company applies the guidance in ASC 606, Revenue from Contracts with Customers, or Topic 606, when recognizing revenue associated with its contracts with customers. The Company’s policies with respect to its various revenue streams are detailed below. In general, the Company applies the invoicing practical expedient to recognize revenue for the revenue streams detailed below, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Power Purchase Agreements, or PPAs The majority of the Company’s revenues are obtained through PPAs or similar contractual agreements. Energy, capacity and where applicable, renewable attributes, from the majority of the Company’s renewable energy assets and certain conventional energy plants is sold through long-term PPAs and tolling agreements to a single counterparty, which is often a utility or commercial customer. The majority of these PPAs are accounted for as operating leases as the Company retained its historical lease assessments and classification upon adoption of ASC 842, Leases. ASC 842 requires the minimum lease payments received to be amortized over the term of the lease and contingent rentals are recorded when the achievement of the contingency becomes probable. Judgment is required by management in determining the economic life of each generating facility, in evaluating whether certain lease provisions constitute minimum payments or represent contingent rent and other factors in determining whether a contract contains a lease and whether the lease is an operating lease or capital lease. Certain of these leases have no minimum lease payments and all of the rental income under these leases is recorded as contingent rent on an actual basis when the electricity is delivered. Renewable Energy Credits, or RECs Renewable energy credits, or RECs, are usually sold through long-term PPAs or through REC contracts with counterparties. Revenue from the sale of self-generated RECs is recognized when the related energy is generated and simultaneously delivered even in cases where there is a certification lag as it has been deemed to be perfunctory. In a bundled contract to sell energy, capacity and/or self-generated RECs, all performance obligations are deemed to be delivered at the same time and hence, timing of recognition of revenue for all performance obligations is the same and occurs over time. In such cases, it is often unnecessary to allocate transaction price to multiple performance obligations. Thermal Revenues Steam and chilled water revenue is recognized as the Company transfers the product to the customer, based on customer usage as determined by meter readings taken at month-end. Some locations read customer meters throughout the month and recognize estimated revenue for the period between meter read date and month-end. For thermal contracts, the Company’s performance obligation to deliver steam and chilled water is satisfied over time and revenue is recognized based on the invoiced amount. The Thermal Business subsidiaries collect, and remit state and local taxes associated with sales to their customers, as required by governmental authorities. These taxes are presented on a net basis in the consolidated statements of income. As contracts for steam and chilled water are long-term contracts, the Company has performance obligations under these contracts that have not yet been satisfied. These performance obligations have transaction prices that are both fixed and variable, and that vary based on the contract duration, customer type, inception date and other contract-specific factors. For the fixed price contracts, the Company cannot accurately estimate the amount of its unsatisfied performance obligations as it will vary based on customer usage, which will depend on factors such as weather and customer activity. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions. Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category for the three and six months ended June 30, 2022 and 2021, respectively:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue 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 contract assets and liabilities included on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021:
Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide for optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, which affects certain of the Company’s debt and interest rate swap agreements. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. As of June 30, 2022, the Company has applied the amendments to all of its eligible contract modifications, where applicable, during the reference rate reform period. Additionally, the Company has not elected any optional expedients provided in the standard.
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Acquisition and Dispositions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions 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 156 MWh of storage capacity that is currently under construction, located in Oahu, Hawaii, from Clearway Renew LLC, a subsidiary of CEG, for cash consideration of $22 million. Lighthouse Renewable Holdco LLC is a partnership between the Company and a third-party investor. The third-party investor also contributed cash consideration of $14 million utilized to acquire their portion of the acquired entity. Mililani BL Borrower Holdco LLC consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Mililani TE Holdco LLC, which directly holds the Mililani I solar project, as further described in Note 4, Investments Accounted for by the Equity Method and Variable Interest Entities. Mililani I has a 20-year power purchase agreement 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 by GIP 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 noncontrolling interest balance. In addition, the Company reflected $15 million of the Company’s purchase price, which was contributed back by CEG to pay down the acquired long-term debt, as distributions to CEG, net of contributions, in the consolidated statement of stockholders’ equity. The following is a summary of assets and liabilities transferred in connection with the acquisition as of March 25, 2022:
(a) Includes a $16 million construction loan, $27 million sponsor equity bridge loan and $60 million tax equity bridge loan, offset by $3 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s purchase price, which was contributed back to the Company by CEG, of which $27 million was utilized to pay down the acquired long-term debt and $2 million was utilized to pay associated fees. Also at acquisition date, the tax equity investor contributed $18 million into escrow, which was included in restricted cash on the Company’s consolidated balance sheet. The tax equity investor will contribute an additional $42 million when the project reaches substantial completion, which will be utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan. The project is expected to achieve substantial completion in the second half of 2022. Thermal Disposition — On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR for net proceeds of approximately $1.46 billion, inclusive of working capital adjustments, which excludes approximately $18 million in transaction expenses that were incurred in connection with the disposition. The Thermal Disposition resulted in a gain on sale of business of approximately $1.29 billion, which is net of the $18 million in transaction expenses referenced above. The proceeds from the sale were utilized to repay certain borrowings outstanding as further described in Note 7, Long-term Debt, with the remaining proceeds invested in short-term investments classified as cash and cash equivalents on the Company’s consolidated balance sheet as of June 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 will be treated as held for sale on a prospective basis, thus the assets and liabilities were reported as separate held for sale line items on the Company’s consolidated balance sheets as of December 31, 2021. As of December 31, 2021, property, plant and equipment represented 78% and intangible assets represented 9% of assets classified as held for sale while long-term debt represented 85% of liabilities classified as held for sale. The Company’s Thermal segment is comprised solely of the Thermal Business's results of operations.
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Investments Accounted for by the Equity Method and Variable Interest Entities |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Accounted for by the Equity Method and Variable Interest Entities | Investments Accounted for by the Equity Method and Variable Interest Entities Entities that are Consolidated The Company has a controlling financial interest in certain entities which have been identified as VIEs under ASC 810, Consolidations, or ASC 810. These arrangements are primarily related to tax equity arrangements entered into with third parties in order to monetize certain tax credits associated with wind and solar facilities, as further described under Item 15 — Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities, to the consolidated financial statements included in the Company’s 2021 Form 10-K. Summarized financial information for the Company’s consolidated VIEs consisted of the following as of June 30, 2022:
(a) DGPV Funds is comprised of DGPV Fund 2 LLC, Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC and Mililani TE Holdco LLC, which are also consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is also a consolidated VIE.
(a) Other is comprised of Crosswind Transmission, LLC, Hardin Hilltop Wind LLC, Elbow Creek TE Holdco and Spring Canyon TE Holdco projects. The discussion below describes material changes to VIEs during the six months ended June 30, 2022. Lighthouse Renewable Holdco LLC — As described in Note 3, Acquisitions and Dispositions, on March 25, 2022, Lighthouse Renewable Holdco LLC acquired the Class B interests in a partnership, Mililani BL Borrower Holdco LLC, which consolidates, as the direct owner of the primary beneficiary, a tax equity fund, Mililani TE Holdco LLC, that holds the Mililani I solar project. The tax equity investor’s interest is shown as noncontrolling interest and the HLBV method is utilized to allocate the income or losses of Mililani TE Holdco LLC. The third-party investor in Lighthouse Renewable Holdco LLC also acquired and contributed an interest in Mililani BL Borrower Holdco LLC to Lighthouse Renewable Holdco LLC. The Company recorded the related noncontrolling interest at historical carrying amount, with the offset to contributed capital. Entities that are not Consolidated The Company has interests in entities that are considered VIEs under ASC 810, but for which it is not considered the primary beneficiary. The Company accounts for its interests in these entities and entities in which it has a significant investment under the equity method of accounting, as further described under Item 15 — Note 5, Investments Accounted for by the Equity Method and Variable Interest Entities, to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s maximum exposure to loss as of June 30, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below:
(a) GenConn is a variable interest entity.
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Fair Value of Financial Instruments |
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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 receivable — affiliates, accounts payable — trade, accounts payable — affiliates and accrued expenses and other current liabilities, the carrying amounts approximate fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The carrying amounts and estimated fair values of the Company’s recorded financial instruments not carried at fair market value or that do not approximate fair value are as follows:
(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 June 30, 2022 and December 31, 2021:
Recurring Fair Value Measurements The Company records its derivative assets and liabilities at fair market value on its consolidated balance sheet. The following table presents assets and liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
(a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of June 30, 2022 and December 31, 2021. (b) SREC contract. The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs:
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 June 30, 2022, contracts valued with prices provided by models and other valuation techniques make up 99% 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 June 30, 2022:
The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2022:
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 June 30, 2022, the non-performance reserve was a $47 million gain recorded primarily to total operating revenues in the consolidated statement of income. It is possible that future market prices could vary from those used in recording assets and liabilities and such variations could be material. Concentration of Credit Risk In addition to the credit risk discussion as disclosed under Item 15 — Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s 2021 Form 10-K, the following item is a discussion of the concentration of credit risk for the Company’s financial instruments. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. The Company monitors and manages credit risk through credit policies that include: (i) an established credit approval process; (ii) monitoring of counterparties' credit limits on as needed basis; (iii) as applicable, the use of credit mitigation measures such as margin, collateral, prepayment arrangements, or volumetric limits; (iv) the use of payment netting agreements; and (v) the use of master netting agreements that allow for the netting of positive and negative exposures of various contracts associated with a single counterparty. Risks surrounding counterparty performance and credit could ultimately impact the amount and timing of expected cash flows. The Company seeks to mitigate counterparty risk by having a diversified portfolio of counterparties. Counterparty credit exposure includes credit risk exposure under certain long-term agreements, including solar and other PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company estimates the exposure related to these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. A significant portion of these commodity contracts are with utilities with strong credit quality and public utility commission or other regulatory support. However, such regulated utility counterparties can be impacted by changes in government regulations or adverse financial conditions, which the Company is unable to predict. Certain subsidiaries of the Company sell the output of their facilities to PG&E, a significant counterparty of the Company, under long-term PPAs, and PG&E’s credit rating is below investment-grade
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities This footnote should be read in conjunction with the complete description under Item 15 — Note 7, Accounting for Derivative Instruments and Hedging Activities, to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interest Rate Swaps The Company enters into interest rate swap agreements in order to hedge the variability of expected future cash interest payments. As of June 30, 2022, the Company had interest rate derivative instruments on non-recourse debt extending through 2031, a portion of which were designated as cash flow hedges. Under the interest rate swap agreements, the Company pays a fixed rate and the counterparties to the agreements pay a variable interest rate. Energy-Related Commodities As of June 30, 2022, the Company had energy-related derivative instruments extending through 2033. At June 30, 2022, these contracts were not designated as cash flow or fair value hedges. Volumetric Underlying Derivative Transactions The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of June 30, 2022 and December 31, 2021:
Fair Value of Derivative Instruments The following table summarizes the fair value within the derivative instrument valuation on the consolidated balance sheets:
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 June 30, 2022 and December 31, 2021, there was no outstanding collateral paid or received. The following tables summarize the offsetting of derivatives by counterparty:
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, net of tax:
Amounts reclassified from accumulated OCI (OCL) into income are recorded to interest expense. Impact of Derivative Instruments on the Consolidated Statements of Income Mark-to-market gains and losses related to the Company’s derivatives are recorded in the consolidated statements of income as follows:
(a) Relates to long-term commodity contracts at Elbow Creek Wind Project LLC, or Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky and gains or losses are recognized in operating revenues. During the six months ended June 30, 2022, the commodity contract for Langford, which previously met the NPNS exception, no longer qualified for NPNS treatment and, accordingly, is accounted for as a derivative and marked to market value through operating revenues. Prior to the Thermal Disposition, which is further described in Note 3, Acquisitions and Dispositions, a portion of the Company’s derivative commodity contracts were related to its Thermal Business for the purchase of fuel/electricity commodities based on the forecasted usage of the thermal district energy centers. Realized gains and losses on these contracts were reflected in the fuel costs that were permitted to be billed to customers through the related customer contracts or tariffs and, accordingly, no gains or losses were reflected in the consolidated statements of income for these contracts through the period that the Company owned the Thermal Business. See Note 5, Fair Value of Financial Instruments, for a discussion regarding concentration of credit risk.
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Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt This note should be read in conjunction with the complete description under Item 15 — Note 10, Long-term Debt, to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s borrowings, including short-term and long-term portions consisted of the following:
(a) As of June 30, 2022, L+ equals 3 month LIBOR plus x%, except Clearway Energy Operating LLC Revolving Credit Facility, due 2023, Marsh Landing, due 2023, Mililani I, due 2022 and 2024, and Walnut Creek, due 2023, where L+ equals 1 month LIBOR plus x%. (b) Applicable rate is determined by the borrower leverage ratio, as defined in the credit agreement. (c) S+ equals SOFR, plus x%. (d) Laredo Ridge, due 2028; Tapestry Wind, LLC, due 2031; and Viento Funding II, LLC, due 2023 project-level debt were repaid on March 16, 2022 totaling $186 million and was replaced with $190 million in new project-level debt under Viento Funding II, LLC that was obtained on March 16, 2022 and is due in 2029, as discussed further below. (e) Premiums relate to the 2028 Senior Notes. The financing arrangements listed above contain certain covenants, including financial covenants that the Company is required to be in compliance with during the term of the respective arrangement. As of June 30, 2022, the Company was in compliance with all of the required covenants. The discussion below describes material changes to or additions of long-term debt for the six months ended June 30, 2022. Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility As of June 30, 2022, the Company had no outstanding borrowings under the revolving credit facility and $87 million in letters of credit outstanding. During the six months ended June 30, 2022, the Company borrowed $80 million under the revolving credit facility and repaid $325 million, $305 million of which was repaid on May 3, 2022, utilizing the proceeds received from the Thermal Disposition. Bridge Loan Agreement On May 3, 2022, the Company repaid the $335 million in outstanding borrowings under the Bridge Loan Agreement utilizing proceeds received from the Thermal Disposition, as further described in Note 3, Acquisitions and Dispositions. Project-level Debt 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 completion of construction, $60 million tax equity bridge loan and a $27 million sponsor equity bridge loan. The sponsor equity bridge loan was repaid at acquisition date, utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s acquisition price, which was contributed back by CEG, and $2 million was utilized to pay associated fees. The tax equity bridge loan will be repaid with the final proceeds from the tax equity investor that will be received when Mililani I achieves substantial completion, which is expected to occur in the second half of 2022. Subsequent to the Mililani I acquisition, the Company borrowed an additional $22 million in construction loans. As of June 30, 2022, the Company had $38 million in outstanding construction loans in addition to the $60 million tax equity bridge loan referenced above. Viento Funding II, LLC On March 16, 2022, the Company, through its indirect subsidiary, Viento Funding II, LLC, entered into a financing agreement which included the issuance of a $190 million term loan as well as $35 million in letters of credit, supported by the Company’s interests in the Elkhorn Ridge, Laredo Ridge, San Juan Mesa and Taloga wind projects. The term loan bears annual interest at a rate of SOFR plus a spread of 0.10% and an applicable margin, which is 1.35% 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.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Shares issued during the year are weighted for the portion of the year that they were outstanding. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The reconciliation of the Company’s basic and diluted earnings per share is shown in the following tables:
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company’s segment structure reflects how management currently operates and allocates resources. The Company’s businesses are segregated based on conventional power generation, renewable businesses which consist of solar and wind, and the Thermal Business, which was sold to KKR on May 1, 2022, as further described in Note 3, Acquisitions and Dispositions. The Corporate segment reflects the Company’s corporate costs and includes eliminating entries. The Company’s chief operating decision maker, its Chief Executive Officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, and CAFD, as well as net income (loss).
(a) The Thermal Business was sold on May 1, 2022. (b) Includes eliminations.
(a) The Thermal Business was sold on May 1, 2022. (b) Includes eliminations.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Effective Tax Rate The income tax provision consisted of the following amounts:
For the three and six months ended June 30, 2022, the overall effective tax rate was different than the statutory rate of 21% primarily due to the allocation of taxable earnings and losses, including the gain on the sale of the Thermal Business, based on the partners' interest in Clearway Energy LLC, which includes the effects of applying HLBV method of accounting for book purposes for certain partnerships. For the three and six months ended June 30, 2021, the overall effective tax rate was different than the statutory rate of 21% primarily due to the allocation of taxable earnings and losses based on the partners' interest in Clearway Energy LLC, which includes the effects of applying HLBV method of accounting for book purposes for certain partnerships. The Company treated the sale of the Thermal Business as a discrete event and recorded the income taxes associated with the transaction during the three months ended June 30, 2022. For tax purposes, Clearway Energy LLC is treated as a partnership; therefore, the Company and CEG each record their respective share of taxable income or loss.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In addition to the transactions and relationships described elsewhere in the notes to the consolidated financial statements, certain subsidiaries of CEG provide services to the Company and its project entities. Amounts due to CEG subsidiaries are recorded as accounts payable — affiliates and amounts due to the Company from CEG subsidiaries are recorded as accounts receivable — affiliates in the Company’s consolidated balance sheets. The disclosures below summarize the Company’s material related party transactions with CEG and its subsidiaries that are included in the Company’s operating costs. O&M Services Agreements by and between the Company and Clearway Renewable Operation & Maintenance LLC Various wholly-owned subsidiaries of the Company in the Renewables segment are party to services agreements with Clearway Renewable Operation & Maintenance LLC, or RENOM, a wholly-owned subsidiary of CEG, which provides operation and maintenance, or O&M, services to these subsidiaries. The Company incurred total expenses for these services of $15 million and $14 million for the three months ended June 30, 2022 and 2021, respectively. The Company incurred total expenses for these services of $30 million and $27 million for the six months ended June 30, 2022 and 2021, respectively. There was a balance of $9 million due to RENOM as of both June 30, 2022 and December 31, 2021. Administrative Services Agreements by and between the Company and CEG Various wholly-owned subsidiaries of the Company are parties to services agreements with Clearway Asset Services LLC and Solar Asset Management LLC, two wholly-owned subsidiaries of CEG, which provide various administrative services to the Company's subsidiaries. The Company incurred expenses under these agreements of $5 million and $4 million for the three months ended June 30, 2022 and 2021, respectively. The Company incurred expenses under these agreements of $8 million and $7 million for the six months ended June 30, 2022 and 2021, respectively. There was a balance of $2 million due to CEG as of both June 30, 2022 and December 31, 2021. CEG Master Services Agreements The Company is a party to Master Services Agreements with CEG, or MSAs, pursuant to which CEG and certain of its affiliates or third-party service providers provide certain services to the Company, including operational and administrative services, which include human resources, information systems, external affairs, accounting, procurement and risk management services, and the Company provides certain services to CEG, including accounting, internal audit, tax and treasury services, in exchange for the payment of fees in respect of such services. The Company incurred net expenses of $1 million under these agreements for both the three months ended June 30, 2022, and 2021. The Company incurred net expenses of $2 million under these agreements for both the six months ended June 30, 2022, and 2021.
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Contingencies |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies This note should be read in conjunction with the complete description under Item 15 — Note 16, Commitments and Contingencies, to the consolidated financial statements included in the Company’s 2021 Form 10-K. The Company’s material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. The Company records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate reserve for the matters discussed below. In addition, legal costs are expensed as incurred. Management assesses such matters based on current information and makes a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. The Company is unable to predict the outcome of the legal proceedings below or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company’s liabilities and contingencies could be at amounts that are different from its currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, the Company and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management’s opinion, the disposition of these ordinary course matters will not materially adversely affect the Company’s consolidated financial position, results of operations, or cash flows. Buckthorn Solar Litigation On October 8, 2019, the City of Georgetown, Texas, or Georgetown, filed a petition in the District Court of Williamson County, Texas naming Buckthorn Westex, LLC, the Company’s subsidiary that owns the Buckthorn Westex solar project, as the defendant, alleging fraud by nondisclosure and breach of contract in connection with the project and the PPA, and seeking (i) rescission and/or cancellation of the PPA, (ii) declaratory judgment that the alleged breaches constitute an event of default under the PPA entitling Georgetown to terminate, and (iii) recovery of all damages, costs of court, and attorneys’ fees. On November 15, 2019, Buckthorn Westex filed an original answer and counterclaims (i) denying Georgetown’s claims, (ii) alleging Georgetown has breached its contracts with Buckthorn Westex by failing to pay amounts due, and (iii) seeking relief in the form of (x) declaratory judgment that Georgetown’s alleged failure to pay amounts due constitute breaches of and an event of default under the PPA and that Buckthorn did not commit any events of default under the PPA, (y) recovery of costs, expenses, interest, and attorneys’ fees, and (z) such other relief to which it is entitled at law or in equity. The case is currently in discovery and is expected to proceed to trial in June 2023. Buckthorn Westex believes the allegations of Georgetown are meritless, and Buckthorn Westex is vigorously defending its rights under the PPA.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the SEC’s regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements included in the Company’s 2021 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company’s consolidated financial position as of June 30, 2022, and results of operations, comprehensive income and cash flows for the three and six months ended June 30, 2022 and 2021.
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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.
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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. 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 leases have no minimum lease payments and all of the rental income under these leases is recorded as contingent rent on an actual basis when the electricity is delivered. Renewable Energy Credits, or RECs Renewable energy credits, or RECs, are usually sold through long-term PPAs or through REC contracts with counterparties. Revenue from the sale of self-generated RECs is recognized when the related energy is generated and simultaneously delivered even in cases where there is a certification lag as it has been deemed to be perfunctory. In a bundled contract to sell energy, capacity and/or self-generated RECs, all performance obligations are deemed to be delivered at the same time and hence, timing of recognition of revenue for all performance obligations is the same and occurs over time. In such cases, it is often unnecessary to allocate transaction price to multiple performance obligations. Thermal Revenues Steam and chilled water revenue is recognized as the Company transfers the product to the customer, based on customer usage as determined by meter readings taken at month-end. Some locations read customer meters throughout the month and recognize estimated revenue for the period between meter read date and month-end. For thermal contracts, the Company’s performance obligation to deliver steam and chilled water is satisfied over time and revenue is recognized based on the invoiced amount. The Thermal Business subsidiaries collect, and remit state and local taxes associated with sales to their customers, as required by governmental authorities. These taxes are presented on a net basis in the consolidated statements of income. As contracts for steam and chilled water are long-term contracts, the Company has performance obligations under these contracts that have not yet been satisfied. These performance obligations have transaction prices that are both fixed and variable, and that vary based on the contract duration, customer type, inception date and other contract-specific factors. For the fixed price contracts, the Company cannot accurately estimate the amount of its unsatisfied performance obligations as it will vary based on customer usage, which will depend on factors such as weather and customer activity. On May 1, 2022, the Company completed the sale of 100% of its interests in the Thermal Business to KKR. For further details of the Thermal Disposition, refer to Note 3, Acquisitions and Dispositions. 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.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide for optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, which affects certain of the Company’s debt and interest rate swap agreements. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. As of June 30, 2022, the Company has applied the amendments to all of its eligible contract modifications, where applicable, during the reference rate reform period. Additionally, the Company has not elected any optional expedients provided in the standard.
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Nature of Business (Tables) |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Structure | The following table represents the structure of the Company as of June 30, 2022: ![]() |
Summary of Significant Accounting Policies (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
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Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
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Schedule of Accumulated Amortization and Depreciation | The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net as of June 30, 2022 and December 31, 2021:
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Dividends Declared | The following table lists the dividends paid on the Company's Class A and Class C common stock during the six months ended June 30, 2022:
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Distributions Made to Limited Liability Company (LLC) Member, by Distribution | The following table lists distributions paid to CEG during the six months ended June 30, 2022 on Clearway Energy LLC’s Class B and D units:
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Redeemable Noncontrolling Interest | The following table reflects the changes in the Company’s redeemable noncontrolling interest balance for the six months ended June 30, 2022:
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Disaggregation of Revenue | The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category for the three and six months ended June 30, 2022 and 2021, respectively:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 842:
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Contract with Customer, Asset and Liability | The following table reflects the contract assets and liabilities included on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021:
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Acquisitions and Dispositions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset Acquisition | The following is a summary of assets and liabilities transferred in connection with the acquisition as of March 25, 2022:
(a) Includes a $16 million construction loan, $27 million sponsor equity bridge loan and $60 million tax equity bridge loan, offset by $3 million in unamortized debt issuance costs. The sponsor equity bridge loan was repaid at acquisition date utilizing $14 million from the cash equity investor, as well as $15 million of the Company’s purchase price, which was contributed back to the Company by CEG, of which $27 million was utilized to pay down the acquired long-term debt and $2 million was utilized to pay associated fees. Also at acquisition date, the tax equity investor contributed $18 million into escrow, which was included in restricted cash on the Company’s consolidated balance sheet. The tax equity investor will contribute an additional $42 million when the project reaches substantial completion, which will be utilized, along with the $18 million in escrow, to repay the $60 million tax equity bridge loan. The project is expected to achieve substantial completion in the second half of 2022.
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Investments Accounted for by the Equity Method and Variable Interest Entities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | Summarized financial information for the Company’s consolidated VIEs consisted of the following as of June 30, 2022:
(a) DGPV Funds is comprised of DGPV Fund 2 LLC, Clearway & EFS Distributed Solar LLC, DGPV Fund 4 LLC, Golden Puma Fund LLC, Renew Solar CS4 Fund LLC and Chestnut Fund LLC. (b) Lighthouse Renewable Holdco LLC consolidates Mesquite Star Tax Equity Holdco LLC, Black Rock TE Holdco LLC and Mililani TE Holdco LLC, which are also consolidated VIEs. (c) Lighthouse Renewable Holdco 2 LLC consolidates Mesquite Sky TE Holdco LLC, which is also a consolidated VIE.
(a) Other is comprised of Crosswind Transmission, LLC, Hardin Hilltop Wind LLC, Elbow Creek TE Holdco and Spring Canyon TE Holdco projects.
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Schedule of Maximum Loss Exposure in Equity Method Investments | The Company’s maximum exposure to loss as of June 30, 2022 is limited to its equity investment in the unconsolidated entities, as further summarized in the table below:
(a) GenConn is a variable interest entity.
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Carrying Values and Fair Values | 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:
(a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company’s consolidated balance sheets.
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Fair Value Option, Disclosures | The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2022 and December 31, 2021:
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Schedule of Fair Value, Assets and Liabilities | 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:
(a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of June 30, 2022 and December 31, 2021. (b) SREC contract. The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs:
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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 June 30, 2022:
The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2022:
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net notional volume buy/(sell) of NRG Yield's open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of June 30, 2022 and December 31, 2021:
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Fair value within the derivative instrument valuation on the balance sheets | The following table summarizes the fair value within the derivative instrument valuation on the consolidated balance sheets:
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Offsetting of derivatives by counterparty master agreement level and collateral received or paid | The following tables summarize the offsetting of derivatives by counterparty:
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Effects of NRG Yield's accumulated OCI balance attributable to interest rate swaps designated as cash flow hedge derivatives, net of tax | The following table summarizes the effects on the Company’s accumulated OCI (OCL) balance attributable to interest rate swaps designated as cash flow hedge derivatives, net of tax:
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Derivative gains and losses | Mark-to-market gains and losses related to the Company’s derivatives are recorded in the consolidated statements of income as follows:
(a) Relates to long-term commodity contracts at Elbow Creek Wind Project LLC, or Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky and gains or losses are recognized in operating revenues. During the six months ended June 30, 2022, the commodity contract for Langford, which previously met the NPNS exception, no longer qualified for NPNS treatment and, accordingly, is accounted for as a derivative and marked to market value through operating revenues.
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Long-term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | The Company’s borrowings, including short-term and long-term portions consisted of the following:
(a) As of June 30, 2022, L+ equals 3 month LIBOR plus x%, except Clearway Energy Operating LLC Revolving Credit Facility, due 2023, Marsh Landing, due 2023, Mililani I, due 2022 and 2024, and Walnut Creek, due 2023, where L+ equals 1 month LIBOR plus x%. (b) Applicable rate is determined by the borrower leverage ratio, as defined in the credit agreement. (c) S+ equals SOFR, plus x%. (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.
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic | The reconciliation of the Company’s basic and diluted earnings per share is shown in the following tables:
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
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Schedule of Earnings Per Share, Diluted | The reconciliation of the Company’s basic and diluted earnings per share is shown in the following tables:
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
(a) Net income attributable to Clearway Energy, Inc. and basic and diluted earnings per share might not recalculate due to presenting values in millions rather than whole dollars.
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment |
(a) The Thermal Business was sold on May 1, 2022. (b) Includes eliminations.
(a) The Thermal Business was sold on May 1, 2022. (b) Includes eliminations.
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the U.S. federal statutory rate to the Company's effective rate | The income tax provision consisted of the following amounts:
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Summary of Significant Accounting Policies - Accumulated Depreciation, Accumulated Amortization (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounting Policies [Abstract] | ||
Property, Plant and Equipment Accumulated Depreciation | $ 2,745 | $ 2,501 |
Intangible Assets Accumulated Amortization | $ 687 | $ 605 |
Summary of Significant Accounting Policies - Dividends Paid (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||||
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Aug. 01, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.3536 | $ 0.3468 | $ 0.3290 | $ 0.7004 | $ 0.6530 | |
Common Class A | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.3604 | |||||
Common Class C | ||||||
Class of Stock [Line Items] | ||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.3536 | $ 0.3468 | $ 0.3290 | $ 0.7004 | $ 0.6530 | |
Common Class C | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.3604 |
Summary of Significant Accounting Policies -Redeemable Noncontrolling Interests (Details) $ in Millions |
6 Months Ended |
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Jun. 30, 2022
USD ($)
| |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance as of December 31, 2021 | $ 0 |
Cash distributions to redeemable noncontrolling interests | (2) |
Comprehensive income attributable to redeemable noncontrolling interests | 6 |
Balance as of June 30, 2022 | $ 4 |
Summary of Significant Accounting Policies - Revenue Recognition (Details) |
May 01, 2022 |
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Discontinued Operations, Disposed of by Sale | Thermal | |
Schedule of Asset Acquisition [Line Items] | |
Percentage of assets ownership sold | 100.00% |
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 222 | $ 144 |
Accounts receivable, net - Contracts with customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 60 | 44 |
Accounts receivable, net - Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 162 | $ 100 |
Investments Accounted for by the Equity Method and Variable Interest Entities - Unconsolidated Entities (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Investment Balance | $ 375 | $ 381 |
Avenal | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50.00% | |
Investment Balance | $ 5 | |
Desert Sunlight | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 25.00% | |
Investment Balance | $ 239 | |
Elkhorn Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 67.00% | |
Investment Balance | $ 26 | |
GenConn | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 50.00% | |
Investment Balance | $ 85 | |
San Juan Mesa | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic Interest | 75.00% | |
Investment Balance | $ 20 |
Fair Value of Financial Instruments - Balance Sheet Grouping (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 7,131 | $ 7,782 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 6,617 | 7,997 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 1,795 | 2,159 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 4,822 | $ 5,838 |
Fair Value of Financial Instruments - Narrative (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Percent of derivative liabilities using level 3 fair value inputs | 99.00% |
Percent of other financial instruments using Level 3 fair value inputs | 100.00% |
Fair value assets, measured on recurring basis, valuation techniques, impact of credit reserve to fair value | $ 47 |
Derivative Instruments and Hedging Activities - Volumetric Underlying Derivative Transactions (Details) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
MMBTU
MWh
|
Dec. 31, 2021
USD ($)
MMBTU
MWh
|
|
Natural Gas | Long | ||
Derivatives, Fair Value [Line Items] | ||
Derivative nonmonetary notional amount (energy measure) | MMBTU | 0 | 2 |
Power | Short | ||
Derivatives, Fair Value [Line Items] | ||
Derivative nonmonetary notional amount (energy measure) | MWh | 19 | 17 |
Interest | Long | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ | $ 1,200 | $ 1,326 |
Derivative Instruments and Hedging Activities - Impact to Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Contracts (Interest expense) | $ 6 | $ 14 | $ 0 | $ 11 | ||
Interest rate contracts | Interest Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Contracts (Interest expense) | 36 | (11) | $ 77 | $ 36 | ||
Commodity Contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Commodity Contracts (Mark-to-market economic hedging activities) | $ (49) | $ (28) | $ (174) | $ (50) |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 1,374 | $ 39 | $ 1,276 | $ (57) |
Income tax expense (benefit) | $ 225 | $ 7 | $ 224 | $ (13) |
Effective income tax rate | 16.40% | 17.90% | 17.60% | 22.80% |
Related Party Transactions (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
subsidiary
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
subsidiary
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Related Party Transaction | |||||
General and administrative expense | $ 11 | $ 10 | $ 23 | $ 20 | |
RENOM | |||||
Related Party Transaction | |||||
Expenses from transactions with related party | 15 | 14 | 30 | 27 | |
Due to affiliate | 9 | 9 | $ 9 | ||
CEG | |||||
Related Party Transaction | |||||
Expenses from transactions with related party | 5 | 4 | 8 | 7 | |
Due to affiliate | $ 2 | $ 2 | $ 2 | ||
Number of wholly owned subsidiaries | subsidiary | 2 | 2 | |||
General and administrative expense | $ 1 | $ 1 | $ 2 | $ 2 |
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