EQUITY METHOD INVESTMENTS

12 Months Ended

Dec. 31, 2012

EQUITY METHOD INVESTMENTS [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 9. EQUITY METHOD INVESTMENTS

Our subsidiaries are party to joint venture agreements through which we have equity investments in several operating projects. The joint venture agreements generally provide for the sharing of operational control as well as voting percentages. We record our share of earnings from our equity investees in equity in net income from unconsolidated investments in our consolidated statements of income.

As of December 31, 2012 and 2011, investments in investees and joint ventures accounted for under the equity method were as follows (dollars in millions):

	Ownership Interest as of December 31, 2012	2012		Ownership Interest as of December 31, 2011	2011
Pacific Ultrapower Chinese Station Plant (U.S.)	55%	$	3	55%	$	3
South Fork Plant (U.S.)	50%	1		50%	1
Koma Kulshan Plant (U.S.)	50%	6		50%	5
TARTECH (U.S.) (1)	50%	2		—%	—
Ambiente 2000 (Italy)	40%	1		40%	1
Sanfeng (China) (2)	40%	12		40%	12
Chengdu (China) (1)	49%	24		49%	21
Total investments		$	49		$	43

(1) See Note 3. Business Development and Acquisitions.

(2) See Note 4. Dispositions.

In 2010, we adopted a plan to sell our interests in our fossil fuel independent power production facilities which included our interests in a 510 MW (gross) coal-fired electric power generation facility in the Philippines (“Quezon”). The Quezon assets sold consisted of our entire interest in Covanta Philippines Operating, Inc., which provided operation and maintenance services to the facility, as well as our 26% ownership interest in the project company, Quezon Power, Inc. For additional information, see Note 3. Business Development and Acquisitions and Note 4. Dispositions. The following is a summary of the unaudited results of operations and financial position of Quezon for the period of January 1, 2011 to March 25, 2011, the disposal date (in millions):

Condensed Statement of Operations for the period January 1 to March 25, 2011:
Revenues	$	74
Operating income	$	32
Net income	$	15
Company’s share of net income	$	4
Condensed Balance Sheet as of March 25, 2011:
Current assets	$	161
Noncurrent assets	602
Total assets	$	763
Current liabilities	$	107
Noncurrent liabilities	249
Total liabilities	$	356