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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency DerivativesMaximum Notional Translated to USDLatest Maturity
Interest rate$5,949 2059
Cross-currency swaps (Brazilian real)404 2026
Foreign Currency:
Chilean peso220 2026
Euro100 2026
Mexican peso73 2024
Colombian peso43 2025
Brazilian real39 2026
Argentine peso2 2026
Commodity DerivativesMaximum NotionalLatest Maturity
Natural Gas (in MMBtu)62 2029
Power (in MWhs)14 2040
Coal (in Tons or Metric Tons)5 2025
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 periods indicated (in millions):
Fair ValueSeptember 30, 2023December 31, 2022
AssetsDesignatedNot DesignatedTotalDesignatedNot DesignatedTotal
Interest rate derivatives$478 $— $478 $313 $1 $314 
Foreign currency derivatives20 48 68 27 59 86 
Commodity derivatives— 141 141 — 245 245 
Total assets$498 $189 $687 $340 $305 $645 
Liabilities
Interest rate derivatives$— $— $— $6 $— $6 
Cross-currency derivatives54 — 54 42 — 42 
Foreign currency derivatives11 15 26 9 11 20 
Commodity derivatives79 128 207 59 347 406 
Total liabilities$144 $143 $287 $116 $358 $474 
September 30, 2023December 31, 2022
Fair ValueAssetsLiabilitiesAssetsLiabilities
Current$355 $113 $271 $168 
Noncurrent332 174 374 306 
Total$687 $287 $645 $474 
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 September 30,Nine Months Ended September 30,
2023202220232022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives$358 $238 $380 $865 
Foreign currency derivatives(18)8 (6)(4)
Commodity derivatives7 5 (20)66 
Total$347 $251 $354 $927 
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives$(2)$(11)$47 $(61)
Foreign currency derivatives(1)2 (4)2 
Commodity derivatives4 (4)17 (5)
Total$1 $(13)$60 $(64)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives$29 $6 $(57)$(29)
Hedged items1 — 54 22 
Total$30 $6 $(3)$(7)
Gains reclassified from AOCL to earnings due to change in forecast
$— $2 $14 $17 
Gains recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives$— $1 $— $4 
Foreign currency derivatives3 35 3 20 
Commodity derivatives and other74 3 265 20 
Total$77 $39 $268 $44 
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 ValuePre-tax Loss
Nine Months Ended September 30, 2023Level 1Level 2Level 3
Long-lived asset groups held and used:
Norgener (2)
5/1/2023$196 $— $— $24 $137 
GAF Projects (AES Renewable Holdings)5/31/202329 — — 11 18 
TEP7/31/2023153 — — 94 59 
TEG7/31/2023170 — — 93 77 
Held-for-sale businesses: (3)
Jordan (4)
3/31/2023$179 $— $170 $— $14 
Jordan (4)
6/30/2023179 — 170 — 15 
Jordan (4)
9/30/2023178 — 170 — 14 
Measurement Date
Carrying Amount (1)
Fair Value
Nine Months Ended September 30, 2022Level 1Level 2Level 3Pre-tax Loss
Long-lived asset groups held and used:
Maritza4/30/2022$920 $— $— $452 $468 
Held-for-sale businesses: (3)
Jordan (4)
9/30/2022216 — 170 — 51 
_____________________________
(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.
(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15—Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.
(3)See Note 17—Held-for-Sale for further information.
(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million for the September 30, 2022 and March 31, 2023 measurement dates and $6 million for the June 30, 2023 and September 30, 2023 measurement dates.
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:
September 30, 2023
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$117 $153 $— $— $153 
Liabilities:Non-recourse debt21,618 21,108 — 19,646 1,462 
Recourse debt5,564 5,106 — 5,106 — 
December 31, 2022
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$301 $340 $— $— $340 
Liabilities:Non-recourse debt19,429 18,527 — 17,089 1,438 
Recourse debt3,894 3,505 — 3,505 — 
_____________________________
(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.
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 ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Long-lived asset groups held and used:
TEP$94 Discounted cash flowAnnual revenue growth
(31)% to 6% (-2%)
Annual variable margin
22% to 37% (26%)
Discount rate
14% to 25% (14%)
TEG93 Discounted cash flowAnnual revenue growth
(7)% to 9% (—%)
Annual variable margin
14% to 33% (20%)
Discount rate
14% to 25% (14%)
Norgener (1)
24 Discounted cash flowAnnual revenue growth
(90)% to 994% (85%)
Annual variable margin
(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)11 Discounted cash flowAnnual revenue growth
(42)% to 44% (1%)
Annual variable margin
(194)% to 77% (66%)
Discount rate
9%
Total$222 
_____________________________
(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.