Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair value hierarchy for recurring measurements table

The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:

	September 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	493	$	—	$	493	$	—	$	698	$	—	$	698
Government debt securities	—		—		—		—		—		3		—		3
Total debt securities	—		493		—		493		—		701		—		701
EQUITY SECURITIES:
Mutual funds	43		—		—		43		38		—		—		38
Total equity securities	43		7		—		50		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		478		—		478		—		314		—		314
Foreign currency derivatives	—		22		46		68		—		22		64		86
Commodity derivatives	—		137		4		141		—		232		13		245
Total derivatives — assets	—		637		50		687		—		568		77		645
TOTAL ASSETS	$	43	$	1,137	$	50	$	1,230	$	38	$	1,269	$	77	$	1,384
Liabilities
Contingent consideration	$	—	$	—	$	267	$	267	$	—	$	—	$	48	$	48
DERIVATIVES:
Interest rate derivatives	—		—		—		—		—		6		—		6
Cross-currency derivatives	—		54		—		54		—		42		—		42
Foreign currency derivatives	—		26		—		26		—		20		—		20
Commodity derivatives	—		127		80		207		—		346		60		406
Total derivatives — liabilities	—		207		80		287		—		414		60		474
TOTAL LIABILITIES	$	—	$	207	$	347	$	554	$	—	$	414	$	108	$	522

Marketable Securities [Table Text Block]

The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Gross proceeds from sale of available-for-sale securities	$	308	$	318	$	1,047	$	665

Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation Table

The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.

	Derivative Assets and Liabilities
Three Months Ended September 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at July 1, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total realized and unrealized gains (losses):
Included in earnings	—		(6)		(3)		(1)		(10)
Included in other comprehensive income (loss) — derivative activity	5		(2)		7		—		10
Acquisitions	—		—		—		3		3
Settlements	—		(9)		(2)		5		(6)
Transfers of assets, net out of Level 3	(4)		—		—		—		(4)
Balance at September 30, 2023	$	—	$	46	$	(76)	$	(267)	$	(297)
Total (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	(13)	$	(3)	$	(1)	$	(17)
	Derivative Assets and Liabilities
Three Months Ended September 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at July 1, 2022	$	1	$	50	$	37	$	(80)	$	8
Total realized and unrealized gains (losses):
Included in earnings	1		22		(1)		4		26
Included in other comprehensive income (loss) — derivative activity	(1)		7		(14)		—		(8)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		1		1
Included in regulatory (assets) liabilities	—		—		(3)		—		(3)
Settlements	—		(9)		—		16		7
Transfers of liabilities, net into Level 3	—		—		(2)		—		(2)
Transfers of assets, net out of Level 3	(2)		—		(15)		—		(17)
Balance at September 30, 2022	$	(1)	$	70	$	2	$	(59)	$	12
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	14	$	(1)	$	4	$	17

Fair value schedule of Significant Unobservable Input Recurring

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2023 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Foreign currency:
Argentine peso	$	46	Argentine peso to U.S. dollar currency exchange rate after one year	860 to 1,500 (1,222)
Commodity:
CAISO Energy Swap	(79)		Forward energy prices per MWh after 2030	$12 to $96 ($52)
Other	3
Total	$	(30)

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

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):

	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% (—%)
				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%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	222

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(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Financial instruments not measured at fair value in the condensed consolidated balance sheets

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, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	117	$	153	$	—	$	—	$	153
Liabilities:	Non-recourse debt	21,618		21,108		—		19,646		1,462
	Recourse debt	5,564		5,106		—		5,106		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	301	$	340	$	—	$	—	$	340
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

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(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.