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Summary of Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2025
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 subsidiary facilities was $223 million and $194 million as of September 30, 2025 and December 31, 2024, 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:
| September 30, 2025 |  | December 31, 2024
| (In millions)
Cash and cash equivalents | $ | 251 |  |  | $ | 332 |
Restricted cash | 390 |  |  | 401 |
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 641 |  |  | $ | 733 |
Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company’s facilities that are restricted in their use. As of September 30, 2025, these restricted funds were comprised of $185 million designated to fund operating expenses, $79 million designated for current debt service payments and $84 million restricted for reserves including debt service, performance obligations and other reserves as well as capital expenditures. The remaining $42 million is held in distributions reserve accounts. 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:
| September 30, 2025 |  | December 31, 2024
| (In millions)
Property, Plant and Equipment Accumulated Depreciation | $ | 4,566 |  |  | $ | 4,086 |
Intangible Assets Accumulated Amortization | 1,332 |  |  | 1,194 |
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 nine months ended September 30, 2025:
|  |  | Third Quarter 2025 |  | Second Quarter 2025 |  | First Quarter 2025
Dividends per Class A share |  |  | $ | 0.4456 |  |  | $ | 0.4384 |  |  | $ | 0.4312 |
Dividends per Class C share |  |  | 0.4456 |  |  | 0.4384 |  |  | 0.4312 |
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 November 3, 2025, the Company declared quarterly dividends on its Class A and Class C common stock of $0.4528 per share payable on December 15, 2025 to stockholders of record as of December 1, 2025. Noncontrolling Interests Clearway Energy LLC Distributions to CEG The following table lists distributions paid to CEG during the nine months ended September 30, 2025 on Clearway Energy LLC’s Class B and D units:
|  |  | Third Quarter 2025 |  | Second Quarter 2025 |  | First Quarter 2025
Distributions per Class B Unit |  |  | $ | 0.4456 |  |  | $ | 0.4384 |  |  | $ | 0.4312 |
Distributions per Class D Unit |  |  | 0.4456 |  |  | 0.4384 |  |  | 0.4312 |
In addition to the quarterly distributions paid to CEG, on June 10, 2025, Clearway Energy LLC distributed an additional $7 million to CEG, which represents CEG’s pro-rata share of distributions related to the Company’s $9 million contribution through Pine Forest TE Class A Owner LLC, or Pine Forest TE Class A, an indirect subsidiary of the Company, to acquire the Class A membership interests in Pine Forest TE HoldCo LLC, as further described in Note 3, Acquisitions and Dispositions. On November 3, 2025, Clearway Energy LLC declared a distribution on its Class B and Class D units of $0.4528 per unit payable on December 15, 2025 to unit holders of record as of December 1, 2025. 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:
|  | (In millions)
Balance at December 31, 2024 |  | $ | — |
Cash contributions from redeemable noncontrolling interests |  | 276 |
Non-cash distributions to redeemable noncontrolling interests |  | (4) |
Comprehensive loss attributable to redeemable noncontrolling interests |  | (198) |
Balance at September 30, 2025 |  | $ | 74 |
Revenue Recognition Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category:
| Three months ended September 30, 2025
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  | Total
Energy revenue (a) | $ | 13 |  |  | $ | 350 |  |  |  |  | $ | 363 |
Capacity revenue (a) | 69 |  |  | 25 |  |  |  |  | 94 |
Other revenues | 3 |  |  | 23 |  |  |  |  | 26 |
Contract amortization | (5) |  |  | (45) |  |  |  |  | (50) |
Mark-to-market for economic hedges | 26 |  |  | (30) |  |  |  |  | (4) |
Total operating revenues | 106 |  |  | 323 |  |  |  |  | 429 |
Less: Contract amortization | 5 |  |  | 45 |  |  |  |  | 50 |
Less: Mark-to-market for economic hedges | (26) |  |  | 30 |  |  |  |  | 4 |
Less: Lease revenue | (29) |  |  | (253) |  |  |  |  | (282) |
Total revenue from contracts with customers | $ | 56 |  |  | $ | 145 |  |  |  |  | $ | 201 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 1 |  |  | $ | 237 |  |  | $ | 238 |
Capacity revenue | 28 |  |  | 16 |  |  | 44 |
Total | $ | 29 |  |  | $ | 253 |  |  | $ | 282 |
| Three months ended September 30, 2024
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  |  |  | Total
Energy revenue (a) | $ | 35 |  |  | $ | 315 |  |  |  |  |  |  | $ | 350 |
Capacity revenue (a) | 65 |  |  | 22 |  |  |  |  |  |  | 87 |
Other revenues | 3 |  |  | 20 |  |  |  |  |  |  | 23 |
Contract amortization | (5) |  |  | (41) |  |  |  |  |  |  | (46) |
Mark-to-market for economic hedges | 4 |  |  | 68 |  |  |  |  |  |  | 72 |
Total operating revenues | 102 |  |  | 384 |  |  |  |  |  |  | 486 |
Less: Contract amortization | 5 |  |  | 41 |  |  |  |  |  |  | 46 |
Less: Mark-to-market for economic hedges | (4) |  |  | (68) |  |  |  |  |  |  | (72) |
Less: Lease revenue | (27) |  |  | (247) |  |  |  |  |  |  | (274) |
Total revenue from contracts with customers | $ | 76 |  |  | $ | 110 |  |  |  |  |  |  | $ | 186 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 1 |  |  | $ | 234 |  |  | $ | 235 |
Capacity revenue | 26 |  |  | 13 |  |  | 39 |
Total | $ | 27 |  |  | $ | 247 |  |  | $ | 274 |
| Nine months ended September 30, 2025
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  |  |  | Total
Energy revenue (a) | $ | 24 |  |  | $ | 925 |  |  |  |  |  |  | $ | 949 |
Capacity revenue (a) | 201 |  |  | 68 |  |  |  |  |  |  | 269 |
Other revenues | 5 |  |  | 63 |  |  |  |  |  |  | 68 |
Contract amortization | (14) |  |  | (125) |  |  |  |  |  |  | (139) |
Mark-to-market for economic hedges | 8 |  |  | (36) |  |  |  |  |  |  | (28) |
Total operating revenues | 224 |  |  | 895 |  |  |  |  |  |  | 1,119 |
Less: Contract amortization | 14 |  |  | 125 |  |  |  |  |  |  | 139 |
Less: Mark-to-market for economic hedges | (8) |  |  | 36 |  |  |  |  |  |  | 28 |
Less: Lease revenue | (87) |  |  | (678) |  |  |  |  |  |  | (765) |
Total revenue from contracts with customers | $ | 143 |  |  | $ | 378 |  |  |  |  |  |  | $ | 521 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 2 |  |  | $ | 637 |  |  | $ | 639 |
Capacity revenue | 85 |  |  | 41 |  |  | 126 |
Total | $ | 87 |  |  | $ | 678 |  |  | $ | 765 |
| Nine months ended September 30, 2024
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  | Total
Energy revenue (a) | $ | 67 |  |  | $ | 870 |  |  |  |  | $ | 937 |
Capacity revenue (a) | 195 |  |  | 44 |  |  |  |  | 239 |
Other revenues | 6 |  |  | 63 |  |  |  |  | 69 |
Contract amortization | (14) |  |  | (124) |  |  |  |  | (138) |
Mark-to-market for economic hedges | 12 |  |  | (4) |  |  |  |  | 8 |
Total operating revenues | 266 |  |  | 849 |  |  |  |  | 1,115 |
Less: Contract amortization | 14 |  |  | 124 |  |  |  |  | 138 |
Less: Mark-to-market for economic hedges | (12) |  |  | 4 |  |  |  |  | (8) |
Less: Lease revenue | (84) |  |  | (691) |  |  |  |  | (775) |
Total revenue from contracts with customers | $ | 184 |  |  | $ | 286 |  |  |  |  | $ | 470 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 2 |  |  | $ | 661 |  |  | $ | 663 |
Capacity revenue | 82 |  |  | 30 |  |  | 112 |
Total | $ | 84 |  |  | $ | 691 |  |  | $ | 775 |
Contract Balances The following table reflects the contract assets included on the Company’s consolidated balance sheets:
| September 30, 2025 |  | December 31, 2024
| (In millions)
Accounts receivable, net - Contracts with customers | $ | 99 |  |  | $ | 75 |
Accounts receivable, net - Leases | 139 |  |  | 89 |
Total accounts receivable, net | $ | 238 |  |  | $ | 164 |
Recent Accounting Standards Not Yet Adopted In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendment clarifies when software costs should be capitalized and requires certain disclosures for all capitalized internal-use software costs. This guidance may be applied prospectively, retrospectively or on a modified retrospective basis and is effective for annual reporting periods in fiscal years beginning after December 15, 2027. The Company intends to early adopt ASU 2025-06 prospectively, effective January 1, 2026. The adoption is not expected to have an impact on the Company’s financial statements. In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The amendment expands the derivative scope exceptions and clarifies when an entity should apply the guidance in ASC 606, Revenue from Contracts with Customers, to contracts with share-based noncash consideration from a customer for the transfer of goods or services. This guidance may be applied either prospectively or on a modified retrospective basis and is effective for annual reporting periods in fiscal years beginning after December 15, 2026. The Company intends to early adopt ASU 2025-07 prospectively, effective January 1, 2026. The adoption is not expected to have an impact on the Company’s financial statements.

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