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Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Interest Rate And Cross Currency Derivatives By Type Table | The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of September 30, 2024, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency Derivatives |  | Maximum Notional Translated to USD |  | Latest Maturity
Interest rate |  | $ | 10,010 |  |  | 2059
Cross-currency swaps (Brazilian real) |  | 404 |  |  | 2026
Foreign currency: |  |  |  |
Brazilian real |  | 392 |  |  | 2026
Chilean peso |  | 165 |  |  | 2027
Mexican peso |  | 112 |  |  | 2025
Euro |  | 95 |  |  | 2026
Colombian peso |  | 41 |  |  | 2026
Commodity Derivatives |  | Maximum Notional |  | Latest Maturity
Natural Gas (in MMBtu) |  | 213 |  |  | 2029
Power (in MWhs) |  | 51 |  |  | 2040
Coal (in Metric Tons) |  | 11 |  |  | 2027
Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table | The following tables present the fair value of the Company’s derivative assets and liabilities as of the dates indicated (in millions):
Fair Value | September 30, 2024 |  | December 31, 2023
Assets | Designated |  | Not Designated |  | Total |  | Designated |  | Not Designated |  | Total
Interest rate derivatives | $ | 131 |  |  | $ | — |  |  | $ | 131 |  |  | $ | 184 |  |  | $ | — |  |  | $ | 184 |
Cross-currency derivatives | 10 |  |  | — |  |  | 10 |  |  | — |  |  | — |  |  | — |
Foreign currency derivatives | 21 |  |  | 69 |  |  | 90 |  |  | 23 |  |  | 51 |  |  | 74 |
Commodity derivatives | 1 |  |  | 527 |  |  | 528 |  |  | — |  |  | 128 |  |  | 128 |
Total assets (1) | $ | 163 |  |  | $ | 596 |  |  | $ | 759 |  |  | $ | 207 |  |  | $ | 179 |  |  | $ | 386 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 168 |  |  | $ | — |  |  | $ | 168 |  |  | $ | 108 |  |  | $ | — |  |  | $ | 108 |
Cross-currency derivatives | 11 |  |  | — |  |  | 11 |  |  | 63 |  |  | — |  |  | 63 |
Foreign currency derivatives | 9 |  |  | 8 |  |  | 17 |  |  | 5 |  |  | 14 |  |  | 19 |
Commodity derivatives | 78 |  |  | 397 |  |  | 475 |  |  | 107 |  |  | 149 |  |  | 256 |
Total liabilities (1) | $ | 266 |  |  | $ | 405 |  |  | $ | 671 |  |  | $ | 283 |  |  | $ | 163 |  |  | $ | 446 |
| September 30, 2024 |  | December 31, 2023
Fair Value | Assets |  | Liabilities |  | Assets |  | Liabilities
Current | $ | 531 |  |  | $ | 363 |  |  | $ | 216 |  |  | $ | 152 |
Noncurrent | 228 |  |  | 308 |  |  | 170 |  |  | 294 |
Total (1) | $ | 759 |  |  | $ | 671 |  |  | $ | 386 |  |  | $ | 446 |
_____________________________ (1)Includes $234 million of derivative assets reported in Current held-for-sale assets and $236 million of derivative liabilities reported in Current held-for-sale liabilities on the Condensed Consolidated Balance Sheets related to AES Brasil as of September 30, 2024.
Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table | The following table presents the pre-tax gains (losses) recognized in AOCL and earnings on the Company’s derivative instruments for the periods indicated (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2024 |  | 2023 |  | 2024 |  | 2023
Cash flow hedges |  |  |  |  |  |  |
Gains (losses) recognized in AOCL |  |  |  |  |  |  |
Interest rate derivatives | $ | (337) |  |  | $ | 358 |  |  | $ | 3 |  |  | $ | 380 |
Foreign currency derivatives | 10 |  |  | (18) |  |  | — |  |  | (6) |
Commodity derivatives | 1 |  |  | 7 |  |  | 29 |  |  | (20) |
Total | $ | (326) |  |  | $ | 347 |  |  | $ | 32 |  |  | $ | 354 |
Gains (losses) reclassified from AOCL into earnings |  |  |  |  |  |  |
Interest rate derivatives | $ | 2 |  |  | $ | (2) |  |  | $ | (28) |  |  | $ | 47 |
Foreign currency derivatives | 1 |  |  | (1) |  |  | 3 |  |  | (4) |
Commodity derivatives | — |  |  | 4 |  |  | — |  |  | 17 |
Total | $ | 3 |  |  | $ | 1 |  |  | $ | (25) |  |  | $ | 60 |
Gains (losses) on fair value hedging relationship |  |  |  |  |  |  |
Cross-currency derivatives | $ | 4 |  |  | $ | 29 |  |  | $ | (2) |  |  | $ | (57) |
Hedged items | 4 |  |  | 1 |  |  | (1) |  |  | 54 |
Total | $ | 8 |  |  | $ | 30 |  |  | $ | (3) |  |  | $ | (3) |
Gains reclassified from AOCL to earnings due to change in forecast | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | 14 |
Gains (losses) recognized in earnings |  |  |  |  |  |  |
Not designated as hedging instruments: |  |  |  |  |  |  |
Interest rate derivatives | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Foreign currency derivatives | (12) |  |  | 3 |  |  | 46 |  |  | 3 |
Commodity derivatives and other | 65 |  |  | 74 |  |  | 158 |  |  | 265 |
Total | $ | 53 |  |  | $ | 77 |  |  | $ | 205 |  |  | $ | 268 |
Fair Value Measurements, Recurring and Nonrecurring | The following table summarizes our major categories of asset groups 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, 2024 |  | Level 1 |  | Level 2 |  | Level 3 |
Held-for-sale businesses: (2) |  |  |  |  |  |  |  |  |  |  |
Mong Duong | 3/31/2024 |  | $ | 450 |  |  | $ | — |  |  | $ | 413 |  |  | $ | — |  |  | $ | 37 |
AES Brasil (3) | 5/15/2024 |  | 1,556 |  |  | — |  |  | 1,352 |  |  | — |  |  | 217 |
Mong Duong (5) | 6/30/2024 |  | 390 |  |  | — |  |  | 389 |  |  | — |  |  | 6 |
AES Brasil (4) | 9/30/2024 |  | 1,351 |  |  | — |  |  | 1,313 |  |  | — |  |  | 60 |
Mong Duong (5) | 9/30/2024 |  | 407 |  |  | — |  |  | 400 |  |  | — |  |  | 11 |
| Measurement Date |  | Carrying Amount (1) |  | Fair Value |  |
Nine Months Ended September 30, 2023 |  | Level 1 |  | Level 2 |  | Level 3 |  | Pre-tax Loss
Long-lived asset groups held and used: |  |  |  |  |  |  |  |  |  |  |
Norgener (6) | 5/1/2023 |  | $ | 196 |  |  | $ | — |  |  | $ | — |  |  | $ | 24 |  |  | $ | 137 |
GAF Projects (AES Renewable Holdings) | 5/31/2023 |  | 29 |  |  | — |  |  | — |  |  | 11 |  |  | 18 |
TEG | 7/31/2023 |  | 170 |  |  | — |  |  | — |  |  | 93 |  |  | 77 |
TEP | 7/31/2023 |  | 153 |  |  | — |  |  | — |  |  | 94 |  |  | 59 |
Held-for-sale businesses: (2) |  |  |  |  |  |  |  |  |  |  |
Jordan (7) | 3/31/2023 |  | $ | 179 |  |  | $ | — |  |  | $ | 170 |  |  | $ | — |  |  | $ | 14 |
Jordan (7) | 6/30/2023 |  | 179 |  |  | — |  |  | 170 |  |  | — |  |  | 15 |
Jordan (7) | 9/30/2023 |  | 178 |  |  | — |  |  | 170 |  |  | — |  |  | 14 |
_____________________________ (1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment. (2)See Note 18—Held-for-Sale and Dispositions for further information. (3)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $13 million. For purposes of the impairment analysis, the Company used the carrying value of the disposal group as of April 30, 2024. A subsequent impairment analysis was performed as of June 30, 2024 and no additional impairment was identified. (4)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $22 million. (5)The pre-tax loss recognized was calculated using the fair value of the Mong Duong disposal group less costs to sell of $5 million for both the June 30, 2024 and September 30, 2024 measurement dates. (6)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 16—Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced. (7)The pre-tax loss recognized was calculated using the fair value of the Jordan disposal group less costs to sell of $5 million, $6 million, and $6 million for the March 31, 2023, June 30, 2023, and September 30, 2023 measurement dates, respectively. 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, 2023 (in millions, except range amounts):
Nine Months Ended September 30, 2023 | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average) |  |  |  |  |  |  |
Long-lived asset groups held and used: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TEP | $ | 94 |  |  | Discounted cash flow |  | Annual revenue growth |  | (31)% to 6% (-2%) |  |  |  |  |  |  |
|  |  |  |  | Annual variable margin |  | 22% to 37% (26%) |  |  |  |  |  |  |
|  |  |  |  | Discount rate |  | 14% to 25% (14%) |  |  |  |  |  |  |
TEG | 93 |  |  | Discounted cash flow |  | Annual revenue growth |  | (7)% to 9% (0%) |  |  |  |  |  |  |
|  |  |  |  | Annual variable margin |  | 14% to 33% (20%) |  |  |  |  |  |  |
|  |  |  |  | Discount rate |  | 14% to 25% (14%) |  |  |  |  |  |  |
Norgener (1) | 24 |  |  | Discounted cash flow |  | Annual revenue growth |  | (90)% to 994% (85%) |  |  |  |  |  |  |
|  |  |  |  | Annual variable margin |  | (75)% to 276% (16%) |  |  |  |  |  |  |
GAF Projects (AES Renewable Holdings) | 11 |  |  | Discounted cash flow |  | Annual revenue growth |  | (42)% to 44% (1%) |  |  |  |  |  |  |
|  |  |  |  | Discount rate |  | 9% |  |  |  |  |  |  |
Total | $ | 222 |  |  |  |  |  |  |  |  |  |  |  |  |  |
_____________________________ (1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.
Fair Value Of Financial Instruments Not Carried At Fair Value [Table Text Block] | 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, 2024
|  | Carrying Amount |  | Fair Value
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: | Accounts receivable — noncurrent (1) | $ | 97 |  |  | $ | 166 |  |  | $ | — |  |  | $ | — |  |  | $ | 166 |
Liabilities: | Non-recourse debt | 22,483 |  |  | 23,150 |  |  | — |  |  | 20,919 |  |  | 2,231 |
| Recourse debt | 6,549 |  |  | 6,459 |  |  | — |  |  | 6,459 |  |  | — |
|  | December 31, 2023
|  | Carrying Amount |  | Fair Value
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: | Accounts receivable — noncurrent (1) | $ | 193 |  |  | $ | 239 |  |  | $ | — |  |  | $ | — |  |  | $ | 239 |
Liabilities: | Non-recourse debt | 22,144 |  |  | 22,174 |  |  | — |  |  | 20,676 |  |  | 1,498 |
| Recourse debt | 4,464 |  |  | 4,210 |  |  | — |  |  | 4,210 |  |  | — |
_____________________________ (1)These amounts primarily relate to the sale of the Redondo Beach land, the amounts impacted by the Stabilization Funds enacted by the Chilean government, and for December 31, 2023 only, the receivables under the Warrior Run PPA termination agreement. These are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.

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