Summary of Significant Accounting and Reporting Policies

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting and Reporting Policies

. Summary of Significant Accounting and Reporting Policies

Restricted Cash - At June 30, 2020 and December 31, 2019, NEP had approximately $3 million and $3 million, respectively, of restricted cash included in other current assets on NEP's condensed consolidated balance sheets. Restricted cash at June 30, 2020 and December 31, 2019 is primarily related to collateral deposits from a counterparty. Restricted cash reported as current assets are recorded as such based on the anticipated use of these funds.

Reference Rate Reform - In March 2020, the Financial Accounting Standards Board (FASB) issued an accounting standards update which provides certain options to apply GAAP guidance on contract modifications and hedge accounting as companies transition from the London Inter-Bank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates that are yet to be determined or finalized. NEP’s contracts that reference LIBOR or other interbank offered rates mainly relate to debt and derivative instruments. The standards update was effective upon issuance and can be applied prospectively through December 31, 2022. NEP is currently evaluating whether to apply the options provided by the standards update with regard to its contracts that reference LIBOR or other interbank offered rates as an interest rate benchmark.

Noncontrolling Interests - At June 30, 2020, the Class B noncontrolling ownership interests (the Class B noncontrolling ownership interests in NEP Renewables sold in 2018 and NEP Renewables II, NEP Pipelines and STX Midstream sold in 2019), the differential membership interests, NEE's approximately 60.8% noncontrolling limited partner interest in NEP OpCo and NEER's approximately 50% noncontrolling ownership interest in Silver State, as well as a non-affiliated party's 10% interest in one of the Texas pipelines and the non-economic ownership interests are reflected as noncontrolling interests on the condensed consolidated balance sheets. The impact of the net income (loss) attributable to the differential membership interests and the Class B noncontrolling ownership interests are allocated to NEE's noncontrolling ownership interest and the net income attributable to NEP based on the respective ownership percentage of NEP OpCo. Details of the activity in noncontrolling interests are below:

	Class B Noncontrolling Ownership Interests		Differential Membership Interests		NEER's Noncontrolling Ownership Interests in NEP OpCo and Silver State		Other Noncontrolling Ownership Interests		Total Noncontrolling Interests
Six months ended June 30, 2020	(millions)
Balances, December 31, 2019	$	2,628	$	1,798	$	389	$	68	$	4,883
Net income (loss) attributable to NCI	52		(71)		(459)		(22)		(500)
Related party contributions	—		—		—		3		3
Related party distributions	—		—		(60)		(2)		(62)
Differential membership investment contributions, net of distributions	—		40		—		—		40
Payments to Class B noncontrolling interest investors	(10)		—		—		—		(10)
Balances, March 31, 2020	2,670		1,767		(130)		47		4,354
Related party note receivable	—		—		1		—		1
Net income (loss) attributable to NCI	53		(78)		97		6		78
Other comprehensive income	—		—		1		—		1
Related party contributions	—		—		—		2		2
Related party distributions	—		—		(67)		(2)		(69)
Differential membership investment contributions, net of distributions	—		(8)		—		—		(8)
Payments to Class B noncontrolling interest investors	(11)		—		—		—		(11)
Other	—		—		1		—		1
Balances, June 30, 2020	$	2,712	$	1,681	$	(97)	$	53	$	4,349

	Class B Noncontrolling Ownership Interests		Differential Membership Interests		NEER's Noncontrolling Ownership Interests in NEP OpCo and Silver State		Other Noncontrolling Ownership Interests		Total Noncontrolling Interests
Six months ended June 30, 2019	(millions)
Balances, December 31, 2018	$	751	$	2,019	$	342	$	80	$	3,192
Net income (loss) attributable to NCI	12		(60)		(50)		(7)		(105)
Other comprehensive loss	—		—		(3)		—		(3)
Related party contributions	—		—		1		—		1
Related party distributions	—		—		(50)		(1)		(51)
Changes in non-economic ownership interests	—		—		—		(6)		(6)
Differential membership investment contributions, net of distributions	—		24		—		—		24
Payments to Class B noncontrolling interest investors	(5)		—		—		—		(5)
Other	—		—		1		—		1
Balances, March 31, 2019	758		1,983		241		66		3,048
Sale of noncontrolling interest in a NEP OpCo subsidiary	893		—		—		—		893
Acquisition of subsidiaries with differential membership interests	—		—		472		—		472
Related party note receivable	—		—		1		—		1
Net income (loss) attributable to NCI	25		(63)		(59)		(5)		(102)
Related party contributions	—		—		11		—		11
Related party distributions	—		—		(54)		(2)		(56)
Differential membership investment contributions, net of distributions	—		(8)		—		—		(8)
Payments to Class B noncontrolling interest investors	(3)		—		—		—		(3)
Balances, June 30, 2019	$	1,673	$	1,912	$	612	$	59	$	4,256