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Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2026
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 June 30, 2026, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency DerivativesMaximum Notional Translated to USD
Latest Maturity (1)
Interest rate$10,266 2058
Foreign currency:
Chilean peso199 2028
Colombian peso187 2028
Euro91 2028
Commodity DerivativesMaximum Notional
Latest Maturity (2)
Natural Gas (in MMBtu)73 2029
Power (in MWhs) (2)
37 2040
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(1)Maturity dates are consistent for both designated and non-designated positions.
(2)Includes one contract designated as a cash flow hedge with a final maturity date in 2038.
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 ValueJune 30, 2026December 31, 2025
AssetsDesignatedNot DesignatedTotalDesignatedNot DesignatedTotal
Interest rate derivatives$277 $— $277 $279 $— $279 
Foreign currency derivatives6 1 7 11 13 24 
Commodity derivatives7 176 183 4 182 186 
Total assets
$290 $177 $467 $294 $195 $489 
Liabilities
Interest rate derivatives$39 $— $39 $59 $— $59 
Foreign currency derivatives— 36 36 4 24 28 
Commodity derivatives35 111 146 46 151 197 
Total liabilities
$74 $147 $221 $109 $175 $284 
June 30, 2026December 31, 2025
Fair ValueAssetsLiabilitiesAssetsLiabilities
Current$255 $112 $261 $154 
Noncurrent212 109 228 130 
Total
$467 $221 $489 $284 
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 June 30,Six Months Ended June 30,
2026202520262025
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives$85 $(19)$77 $(185)
Foreign currency derivatives31 3 30 7 
Commodity derivatives(2)(30)18 — 
Total$114 $(46)$125 $(178)
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives — Interest expense
$(1)$(6)$(4)$9 
Foreign currency derivatives — Foreign currency transaction gains (losses)
1 2 3 5 
Commodity derivatives — Cost of sales—Non-Regulated
3 1 3 3 
Total$3 $(3)$2 $17 
Gains reclassified from AOCL to earnings due to change in forecast
$— $— $— $8 
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Foreign currency derivatives — Foreign currency transaction gains (losses)
$(7)$(7)$(6)$(9)
Commodity derivatives — Revenue—Non-Regulated41 (62)74 (39)
Commodity derivatives — Cost of sales—Non-Regulated— (9)8 (14)
Total$34 $(78)$76 $(62)
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
Six Months Ended June 30, 2025Level 1Level 2Level 3Pre-tax Loss
Held-for-sale businesses: (2)
Mong Duong (3)
3/31/2025383 — 371 — 17 
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(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 Mong Duong disposal group less costs to sell of $5 million.
AES Clean Energy Development Projects — On a quarterly basis, the Company reviews the status of development projects to identify projects that are no longer viable and will be abandoned. The fair value of each abandoned project with no salvage value is determined to be zero as there are no future projected cash flows, resulting in a full write-off of the carrying value of project development intangibles and capitalized development costs incurred.
The Company recognized $38 million and $117 million of pre-tax asset impairment expense related to AES Clean Energy Development Projects during the six months ended June 30, 2026 and 2025, respectively. See Note 16—Asset Impairment Expense for further information.
Mong Duong — In November 2023, the Company entered into an agreement to sell its entire 51% ownership interest in Mong Duong 2, a coal-fired plant in Vietnam, and 51% equity interest in Mong Duong Finance Holdings B.V., an SPV accounted for as an equity affiliate (collectively "Mong Duong"). As of May 31, 2025, due to delays in closing the transaction and the pending expiration of the agreement in November 2025, the Company determined Mong Duong no longer met the held-for-sale criteria and the asset group was reclassified as held and used.
During the six months ended June 30, 2025, the Company recognized a $243 million increase in the carrying value of the Mong Duong asset group due to the derecognition of a $239 million valuation allowance on the loan receivable accounted for under ASC 310, which had been recognized in Asset impairment expense between December 31, 2023 and March 31, 2025 while Mong Duong was classified as held-for-sale, and the elimination of $4 million in net estimated costs to sell from the measurement of the asset group. Upon reclassification out of held-for-sale, the loan receivable was remeasured at amortized cost and individual non-loan assets were remeasured at the lower of (i) carrying value before Mong Duong was classified as held for sale, adjusted for any depreciation
expense or impairment losses that would have been recognized had the asset been continuously classified as held and used, or (ii) fair value at the date of the subsequent determination that held-for-sale criteria was no longer met. See Note 16—Asset Impairment Expense for further information.
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:
June 30, 2026
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$807 $807 $— $— $807 
Liabilities:Non-recourse debt25,222 26,335 — 23,294 3,041 
Recourse debt6,100 5,087 — 5,087 — 
December 31, 2025
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$855 $955 $— $— $955 
Liabilities:Non-recourse debt23,178 23,749 — 20,448 3,301 
Recourse debt5,984 5,003 — 5,003 — 
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(1)For both periods presented, amounts primarily relate to the Mong Duong loan receivable, payment deferrals granted to mining customers as part of our green blend agreements in Chile, and the sale of the Redondo Beach land. These are included in Loan receivable and Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.