Equity Method Investments

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

We recognized income from our equity method investments of approximately $(23) million and $162 million during the three and nine months ended September 30, 2024, respectively, compared to $3 million and $27 million during the three and nine months ended September 30, 2023, respectively. We describe our accounting for non-controlling equity investments in Note 2. As of September 30, 2024 and December 31, 2023, we had 47 and 46 investments, respectively, which we accounted for under the equity method. The majority of these investees are limited liability companies taxed as partnerships wherein we participate in cash distributions and tax attributes according to pre-negotiated profit-sharing arrangements. The limited liability company agreements do not define a fixed percentage of our ownership of these entities, and our claims on the net assets of each investment changes over time as preferred investors achieve their pre-negotiated preferred returns.

The following is a summary of the consolidated balance sheets and income statements of the entities in which we have a significant equity method investment. These amounts are presented on the underlying investees’ accounting basis. In certain instances, adjustment to these equity values may be necessary in order to reflect our basis in these investments. As described in Note 2, any difference between the amount of our investment and the amount of our share of underlying equity is generally amortized over the life of the assets and liabilities to which the differences relate. Certain of our equity method investments have the unrealized mark-to-market losses on energy hedges at the project level that do not qualify for hedge accounting. These unrealized mark-to-market losses, which resulted from rising energy prices, are recorded in the revenue line of the projects’ statements of operations. As these swaps are settled, the projects will sell power at the higher market price, offsetting the loss recognized on the energy hedges.

	Jupiter Equity Holdings LLC		Daggett Renewable Holdco LLC		Other Investments (1)		Total
	(in millions)
Balance Sheet
As of June 30, 2024
Current assets	$	59	$	68	$	1,036	$	1,163
Total assets	2,906		1,141		16,540		20,587
Current liabilities	316		13		907		1,236
Total liabilities	546		454		8,718		9,718
Members' equity	2,360		687		7,822		10,869
As of December 31, 2023
Current assets	52		35		898		985
Total assets	2,950		677		14,965		18,592
Current liabilities	205		10		715		930
Total liabilities	500		262		7,898		8,660
Members' equity	2,450		415		7,067		9,932
Income Statement
For the six months ended June 30, 2024
Revenue	6		31		489		526
Income (loss) from continuing operations	(95)		1		(102)		(196)
Net income (loss)	(95)		1		(102)		(196)
For the six months ended June 30, 2023
Revenue	59		2		386		447
Income (loss) from continuing operations	(27)		2		(61)		(86)
Net income (loss)	(27)		2		(61)		(86)

(1)     Represents aggregated financial statement information for investments not separately presented.