Revenue (Notes)

9 Months Ended

Sep. 30, 2020

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions):

	Three Months Ended September 30, 2020
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	674	$	—	$	—	$	—	$	—	$	674
Other regulated revenue	6		—		—		—		—		6
Total regulated revenue	680		—		—		—		—		680
Non-Regulated Revenue
Revenue from contracts with customers	378		848		417		134		(3)		1,774
Other non-regulated revenue (1)	3		2		25		61		—		91
Total non-regulated revenue	381		850		442		195		(3)		1,865
Total revenue	$	1,061	$	850	$	442	$	195	$	(3)	$	2,545
	Three Months Ended September 30, 2019
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	788	$	—	$	—	$	—	$	—	$	788
Other regulated revenue	11		—		—		—		—		11
Total regulated revenue	799		—		—		—		—		799
Non-Regulated Revenue
Revenue from contracts with customers	245		822		447		141		(1)		1,654
Other non-regulated revenue (1)	86		6		23		56		1		172
Total non-regulated revenue	331		828		470		197		—		1,826
Total revenue	$	1,130	$	828	$	470	$	197	$	—	$	2,625

	Nine Months Ended September 30, 2020
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	1,987	$	—	$	—	$	—	$	—	$	1,987
Other regulated revenue	29		—		—		—		—		29
Total regulated revenue	2,016		—		—		—		—		2,016
Non-Regulated Revenue
Revenue from contracts with customers	742		2,267		1,181		461		(7)		4,644
Other non-regulated revenue (1)	187		6		74		173		—		440
Total non-regulated revenue	929		2,273		1,255		634		(7)		5,084
Total revenue	$	2,945	$	2,273	$	1,255	$	634	$	(7)	$	7,100
	Nine Months Ended September 30, 2019
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	2,272	$	—	$	—	$	—	$	—	$	2,272
Other regulated revenue	36		—		—		—		—		36
Total regulated revenue	2,308		—		—		—		—		2,308
Non-Regulated Revenue
Revenue from contracts with customers	598		2,429		1,331		609		(3)		4,964
Other non-regulated revenue (1)	219		9		67		192		(1)		486
Total non-regulated revenue	817		2,438		1,398		801		(4)		5,450
Total revenue	$	3,125	$	2,438	$	1,398	$	801	$	(4)	$	7,758

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(1)         Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $699 million and $117 million as of September 30, 2020 and December 31, 2019, respectively.

During the nine months ended September 30, 2020 and 2019, we recognized revenue of $12 million and $9 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods.

In August 2020, AES Gener reached an agreement with Minera Escondida and Minera Spence to early terminate two PPAs of the Angamos coal-fired plant in Chile, further accelerating AES Gener's decarbonization strategy. As a result of the termination payment, Angamos recognized a contract liability of $655 million, of which $55 million will be derecognized each month through the end of the remaining performance obligation in August 2021. As of September 30, 2020, the remaining contract liability is $546 million.

A significant financing arrangement exists for our Mong Duong plant in Vietnam. The plant was constructed under a build, operate, and transfer contract and will be transferred to the Vietnamese government after the completion of a 25 year PPA. The performance obligation to construct the facility was substantially completed in 2015. Approximately $1.3 billion of contract consideration related to the construction, but not yet collected through the 25 year PPA, was reflected as a loan receivable, net of CECL reserve of $33 million, as of September 30, 2020.

Remaining Performance Obligations — The transaction price allocated to remaining performance obligations represents future consideration for unsatisfied (or partially unsatisfied) performance obligations at the end of the reporting period. As of September 30, 2020, the aggregate amount of transaction price allocated to remaining performance obligations was $11 million, primarily consisting of fixed consideration for the sale of renewable energy credits (“RECs”) in long-term contracts in the U.S. We expect to recognize revenue on approximately one-fifth of the remaining performance obligations in 2020 and 2021, with the remainder recognized thereafter.