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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
Entire Document
 

Year Ended December 31, 2018 Compared to Year Ended December 31, 2017

Operating Revenues, net

Operating revenues, net for the years ended December 31, 2018 and 2017 were as follows:
 
 
Year Ended December 31,
 
 
(In thousands, other than MW data)
 
2018
 
2017
 
Change
Energy:
 
 
 
 
 
 
Solar
 
$
228,433

 
$
232,791

 
$
(4,358
)
Wind
 
264,585

 
246,838

 
17,747

Regulated Solar and Wind
 
166,984

 

 
166,984

 
 
 
 
 
 
 
Incentives including affiliates:
 
 
 
 
 
 
Solar
 
70,533

 
104,442

 
(33,909
)
Wind
 
16,364

 
26,400

 
(10,036
)
Regulated Solar and Wind
 
19,671

 

 
19,671

Total operating revenues, net
 
$
766,570

 
$
610,471

 
$
156,099

 
 
 
 
 
 
 
GWh sold:
 
 
 
 
 
 
Solar
 
1,819

 
1,895

 
(76
)
Wind
 
5,457

 
5,381

 
76

Regulated Solar and Wind
 
812

 

 
812

Total GWh sold
 
8,088

 
7,276

 
812

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
 
Nameplate capacity (MW):
 
2018
 
2017
 
Change
Solar
 
1,092

 
1,084

 
8

Wind
 
1,854

 
1,614

 
240

Regulated Solar and Wind
 
792

 

 
792

Total nameplate capacity
 
3,738

 
2,698

 
1,040


Our European Platform, consisting of the assets in Saeta, was acquired in June 2018 and contributed energy revenue of $167.0 million to the new Regulated Solar and Wind segment, which represented its entire operations in Spain. Energy revenue for our Solar segment decreased by $4.4 million during the year ended December 31, 2018, compared to 2017, primarily due to a $7.1 million decrease resulting from the sale of renewable energy facilities in the second quarter of 2017 that was partially offset by a $2.7 million increase in solar availability in 2018. Energy revenue for our Wind segment increased by $17.7 million during the year ended December 31, 2018, compared to 2017, primarily driven by a $34.6 million contribution from Saeta’s operations in Portugal and Uruguay and a $2.3 million increase in unrealized gains on commodity derivative contracts not designated as hedging instruments. These increases in revenue were partially offset by (i) a $10.1 million decrease due to lower availability; (ii) a $7.6 million reduction due to lower basis pricing in Texas as a result of continued challenged market conditions; (iii) a $4.5 million decrease driven by lower resource in Central Wind; and (iv) a $3.2 million decrease due to the change in revenue recognition policy (see Note 2. Summary of Significant Accounting Policies and Note 3. Revenue to our consolidated financial statements). The outages at Raleigh and Bishop Hill were primarily caused by the failure of a single faulty blade which caused the collapse of a tower at our Raleigh wind facility. While we worked to determine the root cause of the blade failure, we removed from service all 70 turbines at Raleigh and Bishop Hill that utilized the same blades. After a thorough investigation and rigorous inspections of the blades, all turbines were returned to service between mid-March and the end of April 2018.

Incentive revenue for our Solar segment decreased by $33.9 million during the year ended December 31, 2018, compared to 2017, primarily due to: (i) a $13.6 million decrease in REC revenue due to the change in revenue recognition accounting policy; (ii) a $7.6 million reduction resulting from the sale of renewable energy facilities in the second quarter of


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