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Fair Value | 3 Months Ended
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Mar. 31, 2013
FAIR VALUE | 3. FAIR VALUE The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of the Company's assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The re were no changes in fair valuation techniques during the period and the Company continues to follow the valuation techniques described in Note 4.—Fair Value in Item 8.—Financial Statements and Supplementary Data of its 2012 Form 10-K. Recurring Measurements The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012:
|  |  |  | March 31, 2013 |  | December 31, 2012
|  |  |  | Level 1 |  | Level 2 |  | Level 3 |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  | Total
Assets |  | (in millions)
AVAILABLE-FOR-SALE:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Unsecured debentures | $ | - |  | $ | 615 |  | $ | - |  | $ | 615 |  | $ | - |  | $ | 448 |  | $ | - |  | $ | 448
|  | Certificates of deposit |  | - |  |  | 137 |  |  | - |  |  | 137 |  |  | - |  |  | 143 |  |  | - |  |  | 143
|  | Government debt securities |  | - |  |  | 28 |  |  | - |  |  | 28 |  |  | - |  |  | 34 |  |  | - |  |  | 34
|  | Subtotal |  | - |  |  | 780 |  |  | - |  |  | 780 |  |  | - |  |  | 625 |  |  | - |  |  | 625
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds |  | - |  |  | 57 |  |  | - |  |  | 57 |  |  | - |  |  | 56 |  |  | - |  |  | 56
|  | Subtotal |  | - |  |  | 57 |  |  | - |  |  | 57 |  |  | - |  |  | 56 |  |  | - |  |  | 56
| Total available-for-sale |  | - |  |  | 837 |  |  | - |  |  | 837 |  |  | - |  |  | 681 |  |  | - |  |  | 681
TRADING: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds |  | 12 |  |  | - |  |  | - |  |  | 12 |  |  | 12 |  |  | - |  |  | - |  |  | 12
| Total trading |  | 12 |  |  | - |  |  | - |  |  | 12 |  |  | 12 |  |  | - |  |  | - |  |  | 12
DERIVATIVES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest rate derivatives |  | - |  |  | 2 |  |  | - |  |  | 2 |  |  | - |  | $ | 2 |  | $ | - |  |  | 2
| Cross currency derivatives |  | - |  |  | 8 |  |  | - |  |  | 8 |  |  | - |  |  | 6 |  |  | - |  |  | 6
| Foreign currency derivatives |  | - |  |  | 6 |  |  | 82 |  |  | 88 |  |  | - |  |  | 2 |  |  | 79 |  |  | 81
| Commodity derivatives |  | - |  |  | 6 |  |  | 1 |  |  | 7 |  |  | - |  |  | 8 |  |  | 3 |  |  | 11
|  | Total derivatives |  | - |  |  | 22 |  |  | 83 |  |  | 105 |  |  | - |  |  | 18 |  |  | 82 |  |  | 100
TOTAL ASSETS | $ | 12 |  | $ | 859 |  | $ | 83 |  | $ | 954 |  | $ | 12 |  | $ | 699 |  | $ | 82 |  | $ | 793
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DERIVATIVES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest rate derivatives | $ | - |  | $ | 469 |  | $ | 72 |  | $ | 541 |  | $ | - |  | $ | 153 |  | $ | 412 |  | $ | 565
| Cross currency derivatives |  | - |  |  | 3 |  |  | - |  |  | 3 |  |  | - |  |  | 6 |  |  | - |  |  | 6
| Foreign currency derivatives |  | - |  |  | 7 |  |  | 11 |  |  | 18 |  |  | - |  |  | 7 |  |  | 7 |  |  | 14
| Commodity derivatives |  | - |  |  | 24 |  |  | 69 |  |  | 93 |  |  | - |  |  | 13 |  |  | 59 |  |  | 72
|  | Total derivatives |  | - |  |  | 503 |  |  | 152 |  |  | 655 |  |  | - |  |  | 179 |  |  | 478 |  |  | 657
TOTAL LIABILITIES | $ | - |  | $ | 503 |  | $ | 152 |  | $ | 655 |  | $ | - |  | $ | 179 |  | $ | 478 |  | $ | 657
_______________________ Amortized cost approximated fair value at March 31, 2013 and December 31, 2012. As of March 31, 2013, all available-for-sale debt securities had stated maturities within one year. The following table s present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 and 2012 (presented net by type of derivative where any foreign currency impacts are presented as part of gains (losses) in earnings or other comprehensive income as appropriate)
|  |  |  |  |  |  | Three Months Ended March 31, 2013
|  |  |  |  |  | Interest |  | Foreign |  |  |  |
|  |  |  |  |  | Rate |  | Currency |  | Commodity |  | Total
|  |  | (in millions)
Balance at January 1 | $ | (412) |  | $ | 73 |  | $ | (57) |  | $ | (396)
| Total gains (losses) (realized and unrealized): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Included in earnings |  | - |  |  | (1) |  |  | (10) |  |  | (11)
|  | Included in other comprehensive income |  | (17) |  |  | - |  |  | - |  |  | (17)
|  | Included in regulatory (assets) liabilities |  | - |  |  | - |  |  | (1) |  |  | (1)
| Settlements |  | 23 |  |  | (1) |  |  | - |  |  | 22
| Transfers of (assets) liabilities out of Level 3 |  | 334 |  |  | - |  |  | - |  |  | 334
Balance at March 31 | $ | (72) |  | $ | 71 |  | $ | (68) |  | $ | (69)
Total gains (losses) for the period included in earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| attributable to the change in unrealized gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| relating to assets and liabilities held at the end of the |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| period | $ | - |  | $ | (2) |  | $ | (10) |  | $ | (12)
|  |  |  | Three Months Ended March 31, 2012
|  |  |  | Interest |  | Cross |  | Foreign |  |  |  |
|  |  |  | Rate |  | Currency |  | Currency |  | Commodity |  | Total
|  |  | (in millions)
Balance at January 1 |  | $ | (128) |  | $ | (18) |  | $ | 51 |  | $ | (53) |  | $ | (148)
| Total gains (losses) (realized and unrealized): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Included in earnings |  |  | (1) |  |  | - |  |  | (2) |  |  | 8 |  |  | 5
|  | Included in other comprehensive income |  |  | 1 |  |  | 14 |  |  | - |  |  | - |  |  | 15
|  | Included in regulatory (assets) liabilities |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
| Settlements |  |  | 6 |  |  | 4 |  |  | (1) |  |  | (1) |  |  | 8
| Transfers of assets (liabilities) into Level 3 |  |  | (28) |  |  | - |  |  | - |  |  | - |  |  | (28)
| Transfers of (assets) liabilities out of Level 3 |  |  | 26 |  |  | - |  |  | - |  |  | - |  |  | 26
Balance at March 31 |  | $ | (124) |  | $ | - |  | $ | 48 |  | $ | (46) |  | $ | (122)
Total gains (losses) for the period included in earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| attributable to the change in unrealized gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| relating to assets and liabilities held at the end of the |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| period |  | $ | - |  | $ | - |  | $ | (3) |  | $ | 9 |  | $ | 6
|  |  |  |  |  |  | Amount or Range
Type of Derivative |  | Fair Value |  | Unobservable Input |  | (Weighted Average)
|  | (in millions) |  |  |  |  |
Interest rate | $ | (72) |  | Subsidiaries' credit spreads |  | 2.15% - 9.03% (4.35%)
Foreign currency: |  |  |  |  |  |  |
| Embedded derivative - Argentine Peso |  | 70 |  | Argentine Peso to U.S. Dollar |  |
|  |  |  |  |  | currency exchange rate after 3 years |  | 14.4 - 21.2 (17.7)
Commodity: |  |  |  |  |  |  |
| Embedded derivative - Aluminum |  | (65) |  | Market price of power for |  |
|  |  |  |  |  | customer in Cameroon (per KWh) |  | $0.06 - $0.14 ($0.12)
Other |  | (2) |  |  |  |  |
Total | $ | (69) |  |  |  |  |
Nonrecurring Measurements For purposes of impairment evaluation, the Company measured the fair value of long-lived assets and equity method investments under the fair value measurement accounting guidance. Impairment expense is measured by comparing the f air value of asset groups at the evaluation date to the ir carrying amount. T he following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarch y:
|  | Three Months Ended March 31, 2013
|  |  |  | Carrying |  | Fair Value |  | Gross
|  | Amount |  | Level 1 |  | Level 2 |  | Level 3 |  | Loss
Assets |  | (in millions)
| Long-lived assets held and used:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Beaver Valley |  | $ | 61 |  | $ | - |  | $ | - |  | $ | 15 |  | $ | 46
| Long-lived assets held for sale:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Wind turbines |  |  | 25 |  |  | - |  |  | - |  |  | 25 |  |  | -
| Discontinued operations and held for sale businesses:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Ukraine utilities |  |  | 143 |  |  | - |  |  | 109 |  |  | - |  |  | 38
| Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended March 31, 2012
|  |  |  | Carrying |  | Fair Value |  | Gross
|  | Amount |  | Level 1 |  | Level 2 |  | Level 3 |  | Loss
Assets |  | (in millions)
| Long-lived assets held and used:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Kelanitissa |  |  | 22 |  |  | - |  |  | - |  |  | 17 |  |  | 5
| Equity method investments(3) |  |  | 204 |  |  | - |  |  | 155 |  |  | - |  |  | 49
_______________________ (1) See Note 13―Asset Impairment Expense for further information. (2) See Note 15―Discontinued Operations and Held For Sale Businesses for further information. Also, the gross loss equals the carrying amount of the disposal group less its fair value less costs to sell. (3) See Note 14―Other Non-Operating Expense for further information. The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets during the three months ended March 31, 2013:
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
|  | (in millions) |  |  |  |  |  | ($ in millions)
Long-lived assets held and used: |  |  |  |  |  |  |  |
| Beaver Valley | $ | 15 |  | Discounted |  |  |  |
|  |  |  |  | cash flow |  | Annual revenue growth |  | 3% to 45% (19%)
|  |  |  |  |  |  | Annual pretax operating margin |  | -42% to 41% (25%)
|  |  |  |  |  |  | Weighted average cost of capital |  | 7%
Long-lived assets held for sale: |  |  |  |  |  |  |  |
| Wind turbines |  | 25 |  | Market |  |  |  |
|  |  |  |  | Approach |  | Indicative offer prices | $ | $12 to $38 (25)
Total | $ | 40 |  |  |  |  |  |
Financial Instruments n ot Measure d at Fair Value in the Condensed Consolidated Balance Sheet s The following table sets forth the carrying amount and fair value of the Company's financial assets and liabilities that are not measure d at fair value in the condensed consolidated balance sheet s as of March 31, 2013 and December 31, 2012, but for which fair value is disclosed. In addition, the fair value level hierarchy of such assets and liabilities is presented as of March 31, 2013:
|  |  | Carrying |  | Fair Value
March 31, 2013 | Amount |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3
| (in millions)
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accounts receivable - noncurrent(1) | $ | 295 |  | $ | 167 |  | $ | - |  | $ | - |  | $ | 167
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-recourse debt |  | 15,923 |  |  | 16,416 |  |  | - |  |  | 14,212 |  |  | 2,204
| Recourse debt |  | 5,961 |  |  | 6,724 |  |  | - |  |  | 6,724 |  |  | -
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accounts receivable - noncurrent(1) | $ | 304 |  | $ | 188 |  | $ | - |  | $ | - |  | $ | 188
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-recourse debt |  | 15,383 |  |  | 16,110 |  |  | - |  |  | 13,811 |  |  | 2,299
| Recourse debt |  | 5,962 |  |  | 6,628 |  |  | - |  |  | 6,628 |  |  | -
(1) These accounts receivable principally relate to amounts due from the independent system operator in Argentina and are included in “Noncurrent assets― Other” in the accompanying condensed consolidated balance sheets. The fair value of these accounts receivable excludes value added tax of $53 million and $55 million at March 31, 2013 and December 31, 2012, respectively.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
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