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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2020
Fair Value Disclosures [Abstract] |
Marketable Securities [Table Text Block] | The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Gross proceeds from sale of available-for-sale securities | $ | 97 |  |  | $ | 193 |  |  | $ | 410 |  |  | $ | 517 |
Fair value hierarchy for recurring measurements table | The following table presents, 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 the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:
| September 30, 2020 |  | December 31, 2019
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DEBT SECURITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit | $ | — |  |  | $ | 312 |  |  | $ | — |  |  | $ | 312 |  |  | $ | — |  |  | $ | 326 |  |  | $ | — |  |  | $ | 326 |
EQUITY SECURITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual funds | 25 |  |  | 47 |  |  | — |  |  | 72 |  |  | 22 |  |  | 61 |  |  | — |  |  | 83 |
DERIVATIVES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 31 |  |  | — |  |  | 31 |
Foreign currency derivatives | — |  |  | 21 |  |  | 79 |  |  | 100 |  |  | — |  |  | 17 |  |  | 93 |  |  | 110 |
Commodity derivatives | — |  |  | 20 |  |  | 2 |  |  | 22 |  |  | — |  |  | 28 |  |  | 2 |  |  | 30 |
Total derivatives — assets | — |  |  | 44 |  |  | 81 |  |  | 125 |  |  | — |  |  | 76 |  |  | 95 |  |  | 171 |
TOTAL ASSETS | $ | 25 |  |  | $ | 403 |  |  | $ | 81 |  |  | $ | 509 |  |  | $ | 22 |  |  | $ | 463 |  |  | $ | 95 |  |  | $ | 580 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DERIVATIVES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | — |  |  | $ | 415 |  |  | $ | 267 |  |  | $ | 682 |  |  | $ | — |  |  | $ | 144 |  |  | $ | 184 |  |  | $ | 328 |
Cross-currency derivatives | — |  |  | 15 |  |  | 12 |  |  | 27 |  |  | — |  |  | 10 |  |  | 11 |  |  | 21 |
Foreign currency derivatives | — |  |  | 37 |  |  | — |  |  | 37 |  |  | — |  |  | 44 |  |  | — |  |  | 44 |
Commodity derivatives | — |  |  | 23 |  |  | 1 |  |  | 24 |  |  | — |  |  | 29 |  |  | 2 |  |  | 31 |
Total derivatives — liabilities | — |  |  | 490 |  |  | 280 |  |  | 770 |  |  | — |  |  | 227 |  |  | 197 |  |  | 424 |
TOTAL LIABILITIES | $ | — |  |  | $ | 490 |  |  | $ | 280 |  |  | $ | 770 |  |  | $ | — |  |  | $ | 227 |  |  | $ | 197 |  |  | $ | 424 |
Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation Table | The following tables 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 and nine months ended September 30, 2020 and 2019 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
Three Months Ended September 30, 2020 | Interest Rate |  | Cross Currency |  | Foreign Currency |  | Commodity |  | Total
Balance at July 1 | $ | (286) |  |  | $ | (23) |  |  | $ | 76 |  |  | $ | 1 |  |  | $ | (232) |
Total realized and unrealized gains (losses): |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | — |  |  | 8 |  |  | 1 |  |  | 9 |
Included in other comprehensive income — derivative activity | (8) |  |  | 3 |  |  | 3 |  |  | — |  |  | (2) |
Included in regulatory (assets) liabilities | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |
Settlements | 12 |  |  | 9 |  |  | (9) |  |  | 1 |  |  | 13 |
Transfers of assets (liabilities), net into Level 3 | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfers of (assets)/liabilities, net out of Level 3 | 13 |  |  | — |  |  | 1 |  |  | — |  |  | 14 |
Balance at September 30 | $ | (269) |  |  | $ | (11) |  |  | $ | 79 |  |  | $ | 2 |  |  | $ | (199) |
Total gains 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 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |
Three Months Ended September 30, 2019 | Interest Rate |  | Cross Currency |  | Foreign Currency |  | Commodity |  | Total
Balance at July 1 | $ | (243) |  |  | $ | — |  |  | $ | 192 |  |  | $ | 4 |  |  | $ | (47) |
Total realized and unrealized gains (losses): |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | — |  |  | (54) |  |  | (2) |  |  | (56) |
Included in other comprehensive income — derivative activity | (37) |  |  | — |  |  | (10) |  |  | — |  |  | (47) |
Included in regulatory (assets) liabilities | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Settlements | 2 |  |  | — |  |  | (15) |  |  | (1) |  |  | (14) |
Transfers of assets (liabilities), net into Level 3 | — |  |  | (6) |  |  | — |  |  | — |  |  | (6) |
Transfers of (assets) liabilities, net out of Level 3 | 45 |  |  | — |  |  | — |  |  | — |  |  | 45 |
Balance at September 30 | $ | (233) |  |  | $ | (6) |  |  | $ | 113 |  |  | $ | (1) |  |  | $ | (127) |
Total 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 | $ | — |  |  | $ | — |  |  | $ | (62) |  |  | $ | (2) |  |  | $ | (64) |
Nine Months Ended September 30, 2020 | Interest Rate |  | Cross Currency |  | Foreign Currency |  | Commodity |  | Total
Balance at January 1 | $ | (184) |  |  | $ | (11) |  |  | $ | 94 |  |  | $ | (1) |  |  | $ | (102) |
Total realized and unrealized gains (losses): |  |  |  |  |  |  |  |  |
Included in earnings | 2 |  |  | — |  |  | 10 |  |  | 2 |  |  | 14 |
Included in other comprehensive income — derivative activity | (79) |  |  | (10) |  |  | 4 |  |  | — |  |  | (85) |
Included in regulatory (assets) liabilities | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Settlements | 20 |  |  | 10 |  |  | (30) |  |  | — |  |  | — |
Transfers of assets (liabilities), net into Level 3 | (28) |  |  | — |  |  | — |  |  | — |  |  | (28) |
Transfers of (assets)/liabilities, net out of Level 3 | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Balance at September 30 | $ | (269) |  |  | $ | (11) |  |  | $ | 79 |  |  | $ | 2 |  |  | $ | (199) |
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 | $ | — |  |  | $ | — |  |  | $ | (13) |  |  | $ | 2 |  |  | $ | (11) |
Nine Months Ended September 30, 2019 | Interest Rate |  | Cross Currency |  | Foreign Currency |  | Commodity |  | Total
Balance at January 1 | $ | (140) |  |  | $ | — |  |  | $ | 199 |  |  | $ | 4 |  |  | $ | 63 |
Total realized and unrealized gains (losses): |  |  |  |  |  |  |  |  |
Included in earnings | (1) |  |  | — |  |  | (52) |  |  | (2) |  |  | (55) |
Included in other comprehensive income — derivative activity | (113) |  |  | — |  |  | (10) |  |  | — |  |  | (123) |
Included in regulatory (assets) liabilities | — |  |  | — |  |  | — |  |  | (3) |  |  | (3) |
Settlements | 5 |  |  | — |  |  | (24) |  |  | — |  |  | (19) |
Transfers of assets (liabilities), net into Level 3 | (32) |  |  | (6) |  |  | — |  |  | — |  |  | (38) |
Transfers of (assets) liabilities, net out of Level 3 | 48 |  |  | — |  |  | — |  |  | — |  |  | 48 |
Balance at September 30 | $ | (233) |  |  | $ | (6) |  |  | $ | 113 |  |  | $ | (1) |  |  | $ | (127) |
Total 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 | $ | — |  |  | $ | — |  |  | $ | (69) |  |  | $ | (2) |  |  | $ | (71) |
Derivative Assets, Significant unobservable inputs | The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2020 (in millions, except range amounts):
Type of Derivative |  | Fair Value |  | Unobservable Input |  | Amount or Range (Weighted Average)
Interest rate |  | $ | (269) |  |  | Subsidiaries’ credit spreads |  | 3.6% - 4.7% (4.6%)
Cross-currency |  | (11) |  |  | Subsidiaries’ credit spreads |  | 3.8 | %
Foreign currency: |  |  |  |  |  |
Argentine peso |  | 79 |  |  | Argentine peso to U.S. dollar currency exchange rate after one year |  | 79 - 853 (343)
Commodity: |  |  |  |  |  |
Other |  | 2 |  |  |  |  |
Total |  | $ | (199) |  |  |  |  |
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the nine months ended September 30, 2020 (in millions, except range amounts):
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Equity method investments: |  |  |  |  |  |  |
OPGC (1) | $ | 152 |  |  | Expected present value |  | Annual dividend growth |  | (25)% to 40% (2%)
|  |  |  |  | Weighted-average cost of equity |  | 12 | %
Long-lived assets held and used: |  |  |  |  |  |  |
AES Gener | 306 |  |  | Discounted cash flow |  | Annual revenue growth |  | (90)% to 10% (-2%)
|  |  |  |  | Variable margin |  | (94)% to 24% (-3%)
|  |  |  |  | Weighted-average cost of capital |  | 7% to 10%
Hawaii | 76 |  |  | Discounted cash flow |  | Monthly revenue growth |  | (12)% to 13% (0%)
|  |  |  |  | Pre-tax operating margin |  | 24% to 35% (29%)
|  |  |  |  | Weighted-average cost of capital |  | 10% to 13%
Estrella del Mar I | 14 |  |  | Comparable market transactions |  | Sale price per kilowatt (USD) |  | $160 to $520 ($315)
|  |  |  |  | Age of unit when sold (years) |  | 15 to 25 (18)
Total | $ | 548 |  |  |  |  |  |  |
Fair value hierarchy for nonrecurring measurements table | The following table summarizes our major categories of assets measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions):
| Measurement Date |  | Carrying Amount (1) |  | Fair Value |  | Pre-tax Loss
Nine Months Ended September 30, 2020 |  | Level 1 |  | Level 2 |  | Level 3 |
Equity method investments: |  |  |  |  |  |  |  |  |  |  |
OPGC (2) | 03/31/2020 |  | $ | 195 |  |  | $ | — |  |  | $ | — |  |  | $ | 152 |  |  | $ | 43 |
OPGC (3) | 06/30/2020 |  | 272 |  |  | — |  |  | 104 |  |  | — |  |  | 158 |
Long-lived assets held and used |  |  |  |  |  |  |  |  |  |  |
AES Gener | 08/01/2020 |  | 1,087 |  |  | — |  |  | — |  |  | 306 |  |  | 781 |
Hawaii | 08/31/2020 |  | 114 |  |  | — |  |  | — |  |  | 76 |  |  | 38 |
Estrella del Mar I | 09/30/2020 |  | 44 |  |  | — |  |  | — |  |  | 14 |  |  | 30 |
| Measurement Date |  | Carrying Amount (1) |  | Fair Value |  | Pre-tax Loss
Nine Months Ended September 30, 2019 |  | Level 1 |  | Level 2 |  | Level 3 |
Dispositions and held-for-sale businesses: (4) |  |  |  |  |  |  |  |  |  |  |
Kilroot and Ballylumford | 04/12/2019 |  | $ | 232 |  |  | $ | — |  |  | $ | 118 |  |  | $ | — |  |  | $ | 115 |
_____________________________ (1)Represents the carrying values at the dates of measurement, before fair value adjustment. (2)Excludes $115 million of cumulative translation adjustment (debit balance) in the carrying value. (3)Includes $114 million of cumulative translation adjustment (debit balance) in the carrying value. Pre-tax loss is limited to the carrying value of the equity method investment excluding CTA. (4)Per the Company’s policy, pre-tax loss is limited to the impairment of long-lived assets. Any additional losses are recognized on completion of the sale. See Note 18—Held-for-Sale and Dispositions for further information.
Financial instruments not measured at fair value in the condensed consolidated balance sheets | ets The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:
|  | September 30, 2020
|  | Carrying Amount |  | Fair Value
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: | Accounts receivable — noncurrent (1) | $ | 183 |  |  | $ | 296 |  |  | $ | — |  |  | $ | — |  |  | $ | 296 |
Liabilities: | Non-recourse debt | 17,377 |  |  | 18,987 |  |  | — |  |  | 16,053 |  |  | 2,934 |
| Recourse debt | 3,969 |  |  | 2,461 |  |  | — |  |  | 2,461 |  |  | — |
|  | December 31, 2019
|  | Carrying Amount |  | Fair Value
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: | Accounts receivable — noncurrent (1) | $ | 98 |  |  | $ | 145 |  |  | $ | — |  |  | $ | — |  |  | $ | 145 |
Liabilities: | Non-recourse debt | 16,712 |  |  | 16,579 |  |  | — |  |  | 15,804 |  |  | 775 |
| Recourse debt | 3,396 |  |  | 3,529 |  |  | — |  |  | 3,529 |  |  | — |
_____________________________ (1)These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $9 million and $11 million as of September 30, 2020 a

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