Overview



NEP is a growth-oriented limited partnership formed to acquire, manage and own
contracted clean energy projects with stable long-term cash flows. NEP
consolidates the results of NEP OpCo and its subsidiaries through its
controlling interest in the general partner of NEP OpCo. At March 31, 2021, NEP
owned an approximately 42.8% limited partner interest in NEP OpCo and NEE Equity
owned a noncontrolling 57.2% limited partner interest in NEP OpCo. Through NEP
OpCo, NEP has ownership interests in a portfolio of contracted renewable
generation assets consisting of wind and solar projects and a portfolio of
contracted natural gas pipeline assets. NEP's financial results are shown on a
consolidated basis with financial results attributable to NEE Equity reflected
in noncontrolling interests.

This discussion should be read in conjunction with the Notes contained herein
and Management's Discussion and Analysis of Financial Condition and Results of
Operations appearing in the 2020 Form 10-K. The results of operations for an
interim period generally will not give a true indication of results for the
year. In the following discussions, all comparisons are with the corresponding
items in the prior year period.

In December 2020, an indirect subsidiary of NEP completed the acquisition from
NEER of 100% of the membership interests in Wilmot and 100% of the Class C
membership interests in Pine Brooke Holdings. In April 2021, an indirect
subsidiary of NEP entered into purchase and sale agreements to acquire indirect
ownership interests in four wind generation facilities with a combined
generating capacity of 391 MW. See Note 1.

NEP is closely monitoring the global outbreak of COVID-19 and is taking steps
intended to mitigate the potential risks to NEP posed by COVID-19. See Note 11 -
Coronavirus Pandemic.

Results of Operations
                                                                                  Three Months
                                                                                     Ended
                                                                                    March 31,
                                                                                         2021            2020
                                                                                              (millions)
Statement of Income (Loss) Data:
OPERATING REVENUES
Renewable energy sales                                                                 $  155          $  157
Texas pipelines service revenues                                                           91              55
Total operating revenues                                                                  246             212
OPERATING EXPENSES
 Operations and maintenance                                                                92              92
Depreciation and amortization                                                              67              66
Taxes other than income taxes and other                                                     9               5
Total operating expenses - net                                                            168             163
OPERATING INCOME                                                                           78              49
OTHER INCOME (DEDUCTIONS)
Interest expense                                                                          504            (839)
Equity in earnings of equity method investees                                              43              18
Equity in earnings (losses) of non-economic ownership interests                            14             (23)
Other - net                                                                                 2               -
Total other income (deductions) - net                                                     563            (844)
INCOME (LOSS) BEFORE INCOME TAXES                                                         641            (795)
INCOME TAX EXPENSE (BENEFIT)                                                               70             (75)
NET INCOME (LOSS)                                                                         571            (720)
NET INCOME ATTRIBUTABLE TO PREFERRED DISTRIBUTIONS                                          -              (2)
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS                               (369)            500
NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP                          $  202          $ (222)

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

Operating Revenues



Operating revenues increased $34 million for the three months ended March 31,
2021. Texas pipelines service revenues increased approximately $36 million
during the three months ended March 31, 2021 primarily reflecting increases of
$30 million related to higher revenues under transportation and fuel management
agreements during the February weather event (see
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Note 9 - Transportation and Fuel Management Agreements) and $6 million related
to higher revenues associated with a pipeline expansion project that went into
service in the third quarter of 2020.

Operating Expenses



Operations and Maintenance
O&M expenses were flat during the three months ended March 31, 2021 primarily
reflecting an increase of $5 million in higher IDR fees related to growth in
NEP's distributions to its common unitholders, which were offset by decreases in
other project operating expenses.

Other Income (Deductions)



Interest Expense
The decrease in interest expense of approximately $1,343 million during the
three months ended March 31, 2021 primarily reflects $1,330 million of favorable
mark-to-market activity ($535 million of gains recorded in 2021 compared to $795
million of losses in 2020) and decreased interest expense due to lower debt
balances.

Equity in Earnings of Equity Method Investees
Equity in earnings of equity method investees increased approximately $25
million during the three months ended March 31, 2021 primarily due to $18
million of earnings related to the ownership interests in Pine Brooke Holdings
acquired in December 2020 (see Note 1) as well as an increase of approximately
$7 million in earnings primarily related to the ownership interest in Desert
Sunlight.

Equity in Earnings (Losses) of Non-Economic Ownership Interests
NEP recognized approximately $14 million of equity in earnings of non-economic
ownership interests during the three months ended March 31, 2021 compared to $23
million of losses in the prior year period. The change primarily reflects
favorable mark-to-market activity in 2021 compared to unfavorable mark-to-market
activity in 2020.

Income Taxes

For the three months ended March 31, 2021, NEP recorded an income tax expense of
approximately $70 million on income before income taxes of $641 million,
resulting in an effective tax rate of 11%. The tax expense is comprised
primarily of income tax expense of approximately $135 million at the statutory
rate of 21% and $12 million of state taxes, partly offset by $78 million of
income tax benefit attributable to noncontrolling interests.

For the three months ended March 31, 2020, NEP recorded income tax benefit of
approximately $75 million on loss before income taxes of $795 million, resulting
in an effective tax rate of 9%. The tax benefit is comprised primarily of income
tax benefit of approximately $167 million at the statutory rate of 21% and $12
million of state tax benefit, partly offset by $105 million of income tax
attributable to noncontrolling interests.

Net Loss (Income) Attributable to Noncontrolling Interests



For the three months ended March 31, 2021 and 2020, net loss (income)
attributable to noncontrolling interests reflects the net income or loss
attributable to NEE Equity's noncontrolling interest in NEP OpCo, a third
party's 10% interest in one of the Texas pipelines, the loss allocated to
differential membership interest investors, the income allocated to the Class B
noncontrolling interests and NEER's approximately 50% noncontrolling interest in
Silver State. The net income attributable to noncontrolling interests in 2021
compared to net loss attributable to noncontrolling interests in 2020 primarily
reflects the net income allocation to NEE Equity's noncontrolling interest
compared to the allocation of losses in the prior year. See Note 10 -
Noncontrolling Interests.

Liquidity and Capital Resources



NEP's ongoing operations use cash to fund O&M expenses, including related party
fees discussed in Note 9, maintenance capital expenditures, debt service
payments (see Note 7) and distributions to common unitholders and holders of
noncontrolling interests (see Note 8 and Note 10 - Noncontrolling Interests).
NEP expects to satisfy these requirements primarily with internally generated
cash flow. In addition, as a growth-oriented limited partnership, NEP expects
from time to time to make acquisitions and other investments (see Note 11 -
Development, Engineering and Construction Commitments). These acquisitions and
investments are expected to be funded with borrowings under credit facilities or
term loans, issuances of indebtedness, issuances of additional NEP common units
or preferred units, capital raised pursuant to other financing structures, cash
on hand and cash generated from operations.

These sources of funds are expected to be adequate to provide for NEP's
short-term and long-term liquidity and capital needs, although its ability to
make future acquisitions, fund additional expansion or repowering of existing
projects and increase its distributions to common unitholders will depend on its
ability to access capital on acceptable terms.

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As a normal part of its business, depending on market conditions, NEP expects
from time to time to consider opportunities to repay, redeem, repurchase or
refinance its indebtedness. In addition, NEP expects from time to time to
consider potential investments in new acquisitions and the expansion or
repowering of existing projects. These events may cause NEP to seek additional
debt or equity financing, which may not be available on acceptable terms or at
all. Additional debt financing, if available, could impose operating
restrictions, additional cash payment obligations and additional covenants.

NEP OpCo has agreed to allow NEER or one of its affiliates to withdraw funds
received by NEP OpCo or its subsidiaries and to hold those funds in accounts of
NEER or one of its affiliates to the extent the funds are not required to pay
project costs or otherwise required to be maintained by NEP's subsidiaries,
until the financing agreements permit distributions to be made, or, in the case
of NEP OpCo, until such funds are required to make distributions or to pay
expenses or other operating costs. NEP OpCo will have a claim for any funds that
NEER fails to return:

•  when required by its subsidiaries' financings;
•  when its subsidiaries' financings otherwise permit distributions to be made
to NEP OpCo;
•  when funds are required to be returned to NEP OpCo; or
•  when otherwise demanded by NEP OpCo.

In addition, NEER and certain of its affiliates may withdraw funds in connection
with certain long-term debt agreements and hold those funds in accounts
belonging to NEER or its affiliates and provide credit support in the amount of
such withdrawn funds. If NEER fails to return withdrawn funds when required by
NEP's subsidiaries' financing agreements, the lenders will be entitled to draw
on any credit support provided by NEER in the amount of such withdrawn funds.

If NEER or one of its affiliates realizes any earnings on the withdrawn funds prior to the return of such funds, it will be permitted to retain those earnings.

Liquidity Position

At March 31, 2021, NEP's liquidity position was approximately $1,584 million. The table below provides the components of NEP's liquidity position:


                                        March 31, 2021       Maturity Date
                                          (millions)
Cash and cash equivalents              $          110
Amounts due under the CSCS agreement               84
Revolving credit facilities(a)                  1,250            2026
Less borrowings                                   (90)
Less issued letters of credit                    (115)
Genesis Holdings final funding(b)                 345
Total                                  $        1,584

____________________


(a)  Excludes certain credit facilities due to restrictions on the use of the
borrowings.
(b)  Expected to be received in the second quarter of 2021.

Management believes that NEP's liquidity position and cash flows from operations
will be adequate to finance O&M, maintenance capital expenditures, distributions
to its unitholders and liquidity commitments. Management continues to regularly
monitor NEP's financing needs consistent with prudent balance sheet management.

Financing Arrangements



In February 2021, NEP OpCo and its direct subsidiary entered into an amendment
of their existing revolving credit facility to extend the maturity date to
February 2026. During the three months ended March 31, 2021, $90 million was
drawn under the NEP OpCo revolving credit facility. In addition, approximately
$12 million was borrowed under the Meade credit agreement for the Meade
expansion and $2 million was repaid. See Note 7.

NEP OpCo and certain indirect subsidiaries are subject to financings that
contain financial covenants and distribution tests, including debt service
coverage ratios. In general, these financings contain covenants customary for
these types of financings, including limitations on investments and restricted
payments. Certain of NEP's financings provide for interest payable at a fixed
interest rate. However, certain of NEP's financings accrue interest at variable
rates based on an underlying index plus a margin. Interest rate contracts were
entered into for certain of these financings to hedge against interest rate
movements with respect to interest payments on the related borrowings. In
addition, under the project-level financings, each project will be permitted to
pay distributions out of available cash so long as certain conditions are
satisfied, including that reserves are funded with cash or credit support, no
default or event of default under the applicable financings has occurred and is
continuing at the time of such distribution or would result therefrom, and each
project is otherwise in compliance with the project-level financing's covenants.
For the majority of the project-level financings, minimum debt service coverage
ratios must be satisfied in order to make a distribution. For one project-level
financing, the project must maintain a leverage ratio and an interest coverage
ratio in order to
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make a distribution. At March 31, 2021, NEP's subsidiaries were in compliance with all financial debt covenants under their financings.

Capital Expenditures



Annual capital spending plans are developed based on projected requirements for
the projects. Capital expenditures primarily represent the estimated cost of
capital improvements, including construction expenditures that are expected to
increase NEP OpCo's operating income or operating capacity over the long term.
Capital expenditures for projects that have already commenced commercial
operations are generally not significant because most expenditures relate to
repairs and maintenance and are expensed when incurred. For the three months
ended March 31, 2021 and 2020, NEP had capital expenditures of approximately $45
million and $52 million, respectively, primarily reflecting costs associated
with the repowering of certain wind facilities and expansion projects at certain
pipelines. In the third and fourth quarters of 2020, an expansion investment at
one of the Texas pipelines and the repowered wind generation facilities were
placed in service. NEP expects to make additional investments associated with
its ownership interests in Meade related to an expansion scheduled for
commercial operation by mid-2022. See Note 11 - Development, Engineering and
Construction Commitments. These estimates are subject to continuing review and
adjustments and actual capital expenditures may vary significantly from these
estimates.

Cash Distributions to Unitholders



During the three months ended March 31, 2021, NEP distributed approximately $47
million to its common unitholders. On April 20, 2021, the board of directors of
NEP authorized a distribution of $0.6375 per common unit payable on May 14, 2021
to its common unitholders of record on May 6, 2021.

Cash Flows

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

The following table reflects the changes in cash flows for the comparative periods:


                                                        2021       2020     

Change


                                                                (millions)
Three Months Ended March 31,
Net cash provided by operating activities             $  104      $  99      $    5
Net cash used in investing activities                 $ (107)     $ (88)     $  (19)
Net cash provided by (used in) financing activities   $    4      $ (20)

$ 24

Net Cash Provided by Operating Activities



The increase in net cash provided by operating activities was primarily driven
by higher operating income, lower interest payments and higher distributions
from equity method investees, partly offset by working capital timing
differences.

Net Cash Used in Investing Activities


                                                           2021       2020
                                                             (millions)

Three Months Ended March 31,



Capital expenditures and other investments               $  (45)     $ (52)

Payments to related parties under CSCS agreement - net (74) (48)



Distributions from equity method investee                     -          8
  Other                                                      12          4
Net cash used in investing activities                    $ (107)     $ (88)



The increase in net cash used in investing activities was primarily driven by
higher cash sweeps under the CSCS agreement in 2021, partly offset by lower
capital expenditures in 2021 primarily related to the completion of one of the
pipeline expansion projects and the repowering of certain wind facilities in the
third and fourth quarters of 2020 (see Capital Expenditures).

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Net Cash Provided by (Used in) Financing Activities


                                                                         2021                2020
                                                                               (millions)
Three Months Ended March 31,
Proceeds from issuance of common units - net                        $         3          $       2
Issuances (retirements) of long-term debt - net                             100                 46
Partner contributions                                                         -                  3
Partner distributions                                                      (117)               (97)

Change in amounts due to related parties                                     (1)                (1)
Proceeds related to differential membership interests - net                  35                 40

Proceeds (payments) related to Class B noncontrolling interests - (14)

               (10)

net


  Other                                                                      (2)                (3)
Net cash provided by (used in) financing activities                 $       

4 $ (20)

The change in net cash provided by (used in) financing activities primarily reflects the higher net issuances of long-term debt in 2021 (see Note 7) compared to 2020, partly offset by higher partner distributions.

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