Discontinued Operations and Held For Sale Businesses

3 Months Ended

Mar. 31, 2012

DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

15. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

In addition to the businesses reported as discontinued operations in the 2011 Form 10-K, discontinued operations include the results of the following businesses classified as held for sale in March 2012:

• Red Oak, an 832 MW gas-fired generation plant in New Jersey; and
• Ironwood, a 710 MW gas-fired generation plant in Pennsylvania.

The following table summarizes the revenue, income from operations,income tax expense,impairmentand gain on sale of all discontinued operationsfor the three months ended March 31, 2012 and 2011:

		Three Months
		Ended March 31,
		2012		2011
		(in millions)
Revenue		$	37	$	197
Income (loss) from operations of discontinued businesses		$	3	$	(10)
Income tax (expense) benefit			(2)		3
Income (loss) from operations of discontinued
	businesses, net of tax	$	1	$	(7)
Net gain/(loss) on sale and impairments of discontinued operations, net of tax		$	(5)	$	-

Red Oak― In February 2012, a subsidiary of the Company signed a sale agreement with a newly-formed portfolio company of Energy Capital Partners II, LP for the sale of 100% of its membership interest in AES Red Oak, LLC and AES Sayreville, two wholly-owned subsidiaries, that hold the Company's interest in Red Oak for $147 million, subject to customary purchase price adjustments.The transaction closedon April 12, 2012 and the Company expects to recognize a pretax gain in the range of $60 million to $70 million in the second quarter of 2012. Red Oak was reported in the North America Generation segment.

Ironwood ― In February 2012, a subsidiary of the Company signed a sale agreement with an indirect wholly-owned subsidiary of PPL Corporation for the sale of 100% of its equity interest in AES Ironwood, Inc., a wholly-owned subsidiary, that holds the Company's interest in Ironwood for $87 million, subject to customary purchase price adjustments. The transaction closed on April 13, 2012 and the Company expects to recognize a pretax gain in the range of$65 million to $75 million in the second quarter of 2012. Ironwood was reported in the North America Generation segment.