Business Context and Reporting Period
This Form 8-K is a current report filed by Clearway Energy, Inc. on March 9, 2021. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. It is a disclosure regarding corporate governance and audit oversight.
Material Changes
- Dismissal of Auditor: On March 9, 2021, the Audit Committee dismissed KPMG LLP as the Company's independent registered public accounting firm.
- Appointment of New Auditor: On March 11, 2021, the Audit Committee appointed Ernst & Young LLP to audit the consolidated financial statements for the fiscal year ending December 31, 2021.
- Audit History: KPMG's reports for fiscal years 2019 and 2020 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles. The reports did include separate paragraphs noting the adoption of Topic 606 (Revenue) in 2018 and Topic 842 (Leases) in 2019.
- No Disagreements: The Company reported no disagreements with KPMG on accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. It confirms that no consultations were held with Ernst & Young LLP regarding accounting principles or audit opinions prior to their appointment. The filing includes a letter from KPMG LLP (Exhibit 16.1) stating their agreement with the Company's disclosures.
Investor Verification Checklist
- Verify the effective date of the transition from KPMG LLP to Ernst & Young LLP.
- Review the letter from KPMG LLP (Exhibit 16.1) for any additional context on the dismissal.
- Confirm that the change in auditors was not precipitated by any undisclosed disagreements or reportable events.
- Monitor future filings for the first audit report issued by Ernst & Young LLP.