Revenue (Notes)

9 Months Ended

Sep. 30, 2022

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, 2022
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	968	$	—	$	—	$	—	$	—	$	968
Other regulated revenue	8		—		—		—		—		8
Total regulated revenue	976		—		—		—		—		976
Non-Regulated Revenue
Revenue from contracts with customers	491		906		916		208		(7)		2,514
Other non-regulated revenue (1)	39		20		24		53		1		137
Total non-regulated revenue	530		926		940		261		(6)		2,651
Total revenue	$	1,506	$	926	$	940	$	261	$	(6)	$	3,627
	Three Months Ended September 30, 2021
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	760	$	—	$	—	$	—	$	—	$	760
Other regulated revenue	9		—		—		—		—		9
Total regulated revenue	769		—		—		—		—		769
Non-Regulated Revenue
Revenue from contracts with customers	394		893		534		197		(3)		2,015
Other non-regulated revenue (1)	164		3		25		60		—		252
Total non-regulated revenue	558		896		559		257		(3)		2,267
Total revenue	$	1,327	$	896	$	559	$	257	$	(3)	$	3,036

	Nine Months Ended September 30, 2022
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	2,590	$	—	$	—	$	—	$	—	$	2,590
Other regulated revenue	23		—		—		—		—		23
Total regulated revenue	2,613		—		—		—		—		2,613
Non-Regulated Revenue
Revenue from contracts with customers	1,041		2,588		2,119		783		(19)		6,512
Other non-regulated revenue (1)	166		28		73		164		1		432
Total non-regulated revenue	1,207		2,616		2,192		947		(18)		6,944
Total revenue	$	3,820	$	2,616	$	2,192	$	947	$	(18)	$	9,557
	Nine Months Ended September 30, 2021
	US and Utilities SBU		South America SBU		MCAC SBU		Eurasia SBU		Corporate, Other and Eliminations		Total
Regulated Revenue
Revenue from contracts with customers	$	2,117	$	—	$	—	$	—	$	—	$	2,117
Other regulated revenue	30		—		—		—		—		30
Total regulated revenue	2,147		—		—		—		—		2,147
Non-Regulated Revenue
Revenue from contracts with customers	850		2,735		1,509		621		(9)		5,706
Other non-regulated revenue (1)	251		9		75		183		—		518
Total non-regulated revenue	1,101		2,744		1,584		804		(9)		6,224
Total revenue	$	3,248	$	2,744	$	1,584	$	804	$	(9)	$	8,371

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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 $252 million and $216 million as of September 30, 2022 and December 31, 2021, respectively.

During the nine months ended September 30, 2022 and 2021, we recognized revenue of $34 million and $410 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods.

In August 2020, AES Andes 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 Andes' decarbonization strategy. As a result of the termination payment, Angamos recognized a contract liability of $655 million, of which $55 million was derecognized each month through the end of the remaining performance obligation in August 2021.

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. Contract consideration related to the construction, but not yet collected through the 25 year PPA, was reflected on the Condensed Consolidated Balance Sheet. As of September 30, 2022 and December 31, 2021, Mong Duong met the held-for-sale criteria and the loan receivable balance of approximately $1.2 billion net of CECL reserve of $29 million and $30 million, respectively, was classified as held-for-sale assets. Of the loan receivable balance, $96 million and $91 million was classified as Current held-for-sale assets, respectively, and $1.1 billion was classified as Noncurrent held-for-sale assets.

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, 2022, the aggregate amount of transaction price allocated to remaining performance obligations was $10 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 2022 and 2023, with the remainder recognized thereafter.