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Investments In and Advances To Affiliates

12 Months Ended

Dec. 31, 2012

INVESTMENTS IN AND ADVANCES TO AFFILIATES

8. INVESTMENTS IN AND ADVANCES TO AFFILIATES

The following table summarizes the relevant effective equity ownership interest and carrying values for the Company's investments accounted for under the equity method as of December 31, 2012 and 2011.

		December 31,
Affiliate	Country	2012		2011		2012	2011

		Carrying Value				Ownership Interest %
		(in millions)
AES Solar Holding Co⁽¹⁾	Various	$	307	$	324	50%	50%
Barry⁽²⁾	United Kingdom		-		-	100%	100%
Cartagena⁽³⁾	Spain		-		N/A	14%	N/A
CET⁽²⁾	Brazil		13		14	72%	72%
Chigen affiliates ⁽⁴⁾	China		2		30	35%	25%
China Wind⁽⁵⁾	China		-		75	0%	49%
Elsta	Netherlands		219		197	50%	50%
Entek⁽⁶⁾	Turkey		234		121	50%	50%
Guacolda	Chile		196		186	35%	35%
IC Ictas Energy Group⁽⁶⁾	Turkey		-		161	0%	51%
InnoVent^(2),(7)	France		-		32	0%	40%
JHRH⁽⁸⁾	China		-		59	0%	49%
OPGC	India		199		203	49%	49%
Trinidad Generation Unlimited⁽²⁾	Trinidad		24		19	10%	10%
Other affiliates	Various		2		1
Total investments in and advances to affiliates		$	1,196	$	1,422

____________________________

Represent our investments in AES Solar Energy Ltd in Europe, AES Solar Power LLC in the United States and AES Solar Power, PR, LLC in Puerto Rico.
Represent VIEs in which the Company holds a variable interest, but is not the primary beneficiary.
The Company sold 80% of its interest in AES Energia Cartagena S.R.L. during 2012 resulting in the deconsolidation of this entity. Refer to Note 24—Acquisitions and Dispositions for further information.
Represent our investments in Chengdu AES Kaihua Gas Turbine Company Ltd. and Yangcheng International Power Generating Co. Ltd. The Company sold its interest in the Yangcheng affiliates during 2012. Refer to Note 24—Acquisitions and Dispositions for further information.
Represent our investments in Guohua AES (Huanghua) Wind Power Co. Ltd., Guohua AES (Hulunbeier) Wind Power Co. Ltd., Guohua AES (Chenba'-erhu) Wind Power Co. Ltd., and Guohua AES (Xinba'-erhu) Wind Power Co. Ltd. The Company sold its interest in the affiliates during 2012. Refer to Note 24—Acquisitions and Dispositions for further information.
IC Ictas Energy Group joint venture was dissolved during 2012. See the Entek description below.
The Company sold its interest in InnoVent during 2012. Refer to Note 9—Other Non-Operating Expense for further information.
The Company completed the sale of its interest in JHRH in the fourth quarter of 2012. Refer to Note 9—Other Non-Operating Expense for further information.

AES Barry Ltd.—The Company holds a 100% ownership interest in AES Barry Ltd. (“Barry”), a dormant entity in the United Kingdom that disposed of its generation and other operating assets. Due to a debt agreement, no material financial or operating decisions can be made without the banks' consent, and the Company does not control Barry. As of December 31, 2012 and 2011, other long-term liabilities included $55 million and $52 million, respectively, related to this debt agreement.

AES Entek Elektrik Üretimi A.Ş. (“Entek”)— Entek, a joint venture with Koc Holding, owns and operates gas-fired and hydroelectric generation facilities in Turkey with an aggregate capacity of 378 MW and is also engaged in an energy trading business. During the fourth quarter of 2012, AES entered into an agreement to dissolve a separate joint venture in Turkey with IC Ictas Energy Group. Under the agreement, AES received net proceeds of $10 million and a 100% interest in three hydroelectric plants with an aggregate generation capacity of 62 MW from IC Ictas Energy Group. The Company recognized a pretax gain of $1 million on the dissolution. Thereafter, the Company sold these hydropower plants to Entek and received net proceeds of $82 million. Both transactions closed in the fourth quarter of 2012.

Trinidad Generation Unlimited (“TGU”)—Although the Company's ownership in TGU is 10%, the Company accounts for the investment as an equity method investment due to the Company's ability to exercise significant influence through the supermajority vote requirement for any significant future project development activities. TGU has four gas turbines, which commenced commercial operations in 2011 and 2012.

Summarized Financial Information

The following tables summarize financial information of the Company's 50%-or-less owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method.

	50%-or-less Owned Affiliates						Majority-Owned Unconsolidated Subsidiaries

Years ended December 31,	2012		2011		2010		2012		2011		2010

	(in millions)						(in millions)
Revenue	$	1,868	$	1,668	$	1,341	$	106	$	24	$	20
Gross margin		355		258		207		26		24		18
Net income (loss)		146		(5)		100		(5)		(5)		7

December 31,	2012		2011				2012		2011

	(in millions)						(in millions)
Current assets	$	1,097	$	1,182			$	2	$	58
Noncurrent assets		5,253		4,298				38		519
Current liabilities		680		899				55		109
Noncurrent liabilities		2,899		1,720				20		269
Noncontrolling interests		(228)		(240)				-		-
Stockholders' equity		2,999		3,101				(35)		199

At December 31, 2012, accumulated deficit included $150 million related to the undistributed earnings of the Company's 50%-or-less owned affiliates. Distributions received from these affiliates were $22 million, $36 million, and $49 million for the years ended December 31, 2012, 2011, and 2010, respectively. As of December 31, 2012, the aggregate carrying amount of our investments in equity affiliates exceeded the underlying equity in their net assets by $37 million.