Investments Accounted for by the Equity Method and Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

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:


(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	$	61	$	5	$	92	$	40	$	15	$	97	$	56
Property, plant and equipment	318		198		585		132		129		723		368
Intangible assets	206		—		14		—		2		—		—
Total assets	585		203		691		172		146		820		424
Current and non-current liabilities	39		11		76		93		54		307		133
Total liabilities	39		11		76		93		54		307		133
Noncontrolling interest	31		37		10		51		62		423		234
Net assets less noncontrolling interests	$	515	$	155	$	605	$	28	$	30	$	90	$	57

(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.


(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	$	50	$	11	$	14	$	35	$	22	$	18
Property, plant and equipment	168		105		189		243		217		162
Intangible assets	—		17		—		—		—		1
Total assets	218		133		203		278		239		181
Current and non-current liabilities	105		4		16		100		18		69
Total liabilities	105		4		16		100		18		69
Noncontrolling interest	30		50		93		136		117		77
Net assets less noncontrolling interests	$	83	$	79	$	94	$	42	$	104	$	35

(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:


Name	Economic Interest	Investment Balance
		(In millions)
Avenal	50%	$	5
Desert Sunlight	25%	239
Elkhorn Ridge	67%	26
GenConn (a)	50%	85
San Juan Mesa	75%	20

		$	375

(a) GenConn is a variable interest entity.