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Variable Interest Entities | 6 Months Ended
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Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Variable Interest Entity Disclosure | Variable Interest Entities The Company invests in an Alternative Energy Partnership formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits. This entity was formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers. The Company’s interest in the Alternative Energy Partnership Investment is considered an investment in a variable interest entity (“VIE”). To determine whether the investment should be consolidated in the Consolidated Financial Statements, the Company evaluates whether it is the primary beneficiary of the VIE. The primary beneficiary is the party that has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has determined that it is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the entity and therefore is not required to consolidate the VIE. The project sponsor governs the entity and the Company only has consent rights that have been deemed protective in nature and does not participate in key economic decisions of the entity. The investment is accounted for using the equity method of accounting and included in Alternative Energy Partnership Investments in the Condensed Consolidated Balance Sheets. The Company uses the HLBV equity method to account for earnings and losses. This method provides an earnings allocation that appropriately reflects the substantive economics of the investment. Earnings and losses on the investment are reported in Change in Value of Alternative Energy Partnership Investments and investment tax credits are recognized in Income Tax Benefit on the Condensed Consolidated Statements of Loss. The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments for the six and three months ended June 30, 2023 and 2022.
|  | Six Months Ended |  | Three Months Ended
(Dollars in millions) |  | Jun 30, 2023 |  | Jun 30, 2022 |  | Jun 30, 2023 |  | Jun 30, 2022
Fundings |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cash Distribution from Investment |  | 1.0 |  |  | 0.9 |  |  | 0.5 |  |  | 0.5 |
Income (Loss) on Investments in Alternative Energy Partnership |  | 1.5 |  |  | (21.6) |  |  | 0.8 |  |  | (4.9) |
Income Tax (Recaptures) Credits Recognized |  | (0.1) |  |  | 3.9 |  |  | — |  |  | — |
Tax (Expense) Benefit Recognized from Alternative Energy Partnership |  | (0.3) |  |  | 4.2 |  |  | (0.1) |  |  | 1.1 |
Note 12 - Variable Interest Entities (Continued) The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of June 30, 2023 and December 31, 2022.
(Dollars in millions) |  | Jun 30, 2023 |  | Dec 31, 2022
Cash |  | $ | 2.9 |  |  | $ | 3.0 |
Equipment, Net of Depreciation |  | 257.8 |  |  | 261.7 |
Other Assets |  | 6.3 |  |  | 5.1 |
Total Unconsolidated Assets |  | 267.0 |  |  | 269.7 |
Maximum Loss Exposure |  | 16.8 |  |  | 16.3 |
The Company’s maximum loss exposure in the event that all of the assets in the Alternative Energy Partnership are deemed worthless is $16.8 million and $16.3 million, which is the carrying value of the investment at June 30, 2023

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//810/tableOfContent + Details
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