10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________________________________________________________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12291

THE AES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	54-1163725
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4300 Wilson Boulevard
Arlington,	Virginia	22203
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (703) 522-1315

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	AES	New York Stock Exchange
Corporate Units	AESC	New York Stock Exchange

______________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ Non-accelerated filer ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

______________________________________________________________________________________________

The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, on November 1, 2022 was 667,949,778.

The AES Corporation

Form 10-Q for the Quarterly Period ended September 30, 2022

Table of Contents

Glossary of Terms		1
PART I: FINANCIAL INFORMATION		2
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Changes in Equity	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
	Note 1 - Financial Statement Presentation	8
	Note 2 - Inventory	10
	Note 3 - Fair Value	10
	Note 4 - Derivative Instruments and Hedging Activities	14
	Note 5 - Financing Receivables	15
	Note 6 - Investments in and Advances to Affiliates	16
	Note 7 - Debt	17
	Note 8 - Commitments and Contingencies	18
	Note 9 - Leases	20
	Note 10 - Redeemable Stock of Subsidiaries	21
	Note 11 - Equity	21
	Note 12 - Segments	25
	Note 13 - Revenue	27
	Note 14 - Other Income and Expense	28
	Note 15 - Asset Impairment Expense	29
	Note 16 - Income Taxes	30
	Note 17 - Held-for-Sale and Dispositions	30
	Note 18 - Acquisitions	30
	Note 19 - Earnings Per Share	32
	Note 20 - Risks and Uncertainties	33
	Note 21 - Subsequent Events	34
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	35
	Executive Summary	35
	Review of Consolidated Results of Operations	39
	SBU Performance Analysis	46
	Key Trends and Uncertainties	55
	Capital Resources and Liquidity	60
	Critical Accounting Policies and Estimates	66
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	67
ITEM 4.	CONTROLS AND PROCEDURES	69
PART II: OTHER INFORMATION		70
ITEM 1.	LEGAL PROCEEDINGS	70
ITEM 1A.	RISK FACTORS	72
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	75
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	75
ITEM 4.	MINE SAFETY DISCLOSURES	75
ITEM 5.	OTHER INFORMATION	75
ITEM 6.	EXHIBITS	76
SIGNATURES		77

1 | The AES Corporation | September 30, 2022 Form 10-Q

Glossary of Terms

The following terms and acronyms appear in the text of this report and have the definitions indicated below:

Adjusted EPS	Adjusted Earnings Per Share, a non-GAAP measure
Adjusted PTC	Adjusted Pre-tax Contribution, a non-GAAP measure of operating performance
AES	The Parent Company and its subsidiaries and affiliates
AES Andes	AES Andes S.A., formerly AES Gener
AES Brasil	AES Tietê Energia S.A., formerly branded as AES Tietê
AES Clean Energy Development	AES Clean Energy Development, LLC
AES Indiana	Indianapolis Power & Light Company, formerly branded as IPL. AES Indiana is wholly-owned by IPALCO
AES Ohio	The Dayton Power & Light Company, formerly branded as DP&L. AES Ohio is wholly-owned by DPL
AES Renewable Holdings	AES Renewable Holdings, LLC, formerly branded as AES Distributed Energy
AFUDC	Allowance for Funds Used During Construction
AIMCo	Alberta Management Investment Corporation
ANEEL	Brazilian National Electric Energy Agency
AOCL	Accumulated Other Comprehensive Loss
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
CAA	United States Clean Air Act
CAMMESA	Wholesale Electric Market Administrator in Argentina
CCEE	Brazilian Chamber of Electric Energy Commercialization
CCGT	Combined Cycle Gas Turbine
CCR	Coal Combustion Residuals, which includes bottom ash, fly ash, and air pollution control wastes generated at coal-fired generation plant sites
CECL	Current Expected Credit Loss
CO2	Carbon Dioxide
CSAPR	Cross-State Air Pollution Rule
DG Comp	Directorate-General for Competition
DPL	DPL Inc.
EPA	United States Environmental Protection Agency
EPC	Engineering, Procurement and Construction
ESP	Electric Security Plan
FASB	Financial Accounting Standards Board
Fluence	Fluence Energy, Inc and its subsidiaries, including Fluence Energy, LLC, which was previously our joint venture with Siemens (NASDAQ: FLNC)
FX	Foreign Exchange
GAAP	Generally Accepted Accounting Principles in the United States
GHG	Greenhouse Gas
GILTI	Global Intangible Low Taxed Income
GWh	Gigawatt Hours
HLBV	Hypothetical Liquidation Book Value
IPALCO	IPALCO Enterprises, Inc.
LIBOR	London Interbank Offered Rate
LNG	Liquid Natural Gas
MMBtu	Million British Thermal Units
MW	Megawatts
MWh	Megawatt Hours
NAAQS	National Ambient Air Quality Standards
NCI	Noncontrolling Interest
NM	Not Meaningful
NOV	Notice of Violation
NOX	Nitrogen Oxide
OTC Policy	Statewide Water Quality Control Policy on the Use of Coastal and Estuarine Waters for Power Plant Cooling
PPA	Power Purchase Agreement
PREPA	Puerto Rico Electric Power Authority
RSU	Restricted Stock Unit
SBU	Strategic Business Unit
SEC	United States Securities and Exchange Commission
SO2	Sulfur Dioxide
TDSIC	Transmission, Distribution, and Storage System Improvement Charge
U.S.	United States
USD	United States Dollar
VAT	Value-Added Tax
VIE	Variable Interest Entity

2 | The AES Corporation | September 30, 2022 Form 10-Q

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (Unaudited)

	September 30, 2022		December 31, 2021
	(in millions, except share and per share amounts)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,553	$	943
Restricted cash	314		304
Short-term investments	671		232
Accounts receivable, net of allowance for doubtful accounts of $5 and $5, respectively	1,787		1,418
Inventory	998		604
Prepaid expenses	149		142
Other current assets	1,303		897
Current held-for-sale assets	853		816
Total current assets	7,628		5,356
NONCURRENT ASSETS
Property, Plant and Equipment:
Land	465		426
Electric generation, distribution assets and other	26,003		25,552
Accumulated depreciation	(8,532)		(8,486)
Construction in progress	3,661		2,414
Property, plant and equipment, net	21,597		19,906
Other Assets:
Investments in and advances to affiliates	1,121		1,080
Debt service reserves and other deposits	167		237
Goodwill	1,179		1,177
Other intangible assets, net of accumulated amortization of $415 and $385, respectively	1,626		1,450
Deferred income taxes	380		409
Other noncurrent assets, net of allowance of $57 and $23, respectively	2,964		2,188
Noncurrent held-for-sale assets	1,113		1,160
Total other assets	8,550		7,701
TOTAL ASSETS	$	37,775	$	32,963
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,688	$	1,153
Accrued interest	210		182
Accrued non-income taxes	244		266
Accrued and other liabilities	1,212		1,205
Non-recourse debt, including $321 and $302, respectively, related to variable interest entities	2,007		1,367
Current held-for-sale liabilities	541		559
Total current liabilities	5,902		4,732
NONCURRENT LIABILITIES
Recourse debt	4,668		3,729
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities	15,530		13,603
Deferred income taxes	1,169		977
Other noncurrent liabilities	3,167		3,358
Noncurrent held-for-sale liabilities	677		740
Total noncurrent liabilities	25,211		22,407
Commitments and Contingencies (see Note 8)
Redeemable stock of subsidiaries	1,201		1,257
EQUITY
THE AES CORPORATION STOCKHOLDERS’ EQUITY
Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at September 30, 2022 and December 31, 2021, respectively)	838		838
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 818,790,001 issued and 667,949,778 outstanding at September 30, 2022 and 818,717,043 issued and 666,793,625 outstanding at December 31, 2021)	8		8
Additional paid-in capital	6,818		7,106
Accumulated deficit	(732)		(1,089)
Accumulated other comprehensive loss	(1,691)		(2,220)
Treasury stock, at cost (150,840,223 and 151,923,418 shares at September 30, 2022 and December 31, 2021, respectively)	(1,832)		(1,845)
Total AES Corporation stockholders’ equity	3,409		2,798
NONCONTROLLING INTERESTS	2,052		1,769
Total equity	5,461		4,567
TOTAL LIABILITIES AND EQUITY	$	37,775	$	32,963

See Notes to Condensed Consolidated Financial Statements.

3 | The AES Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except share and per share amounts)
Revenue:
Regulated	$	976	$	768	$	2,613	$	2,147
Non-Regulated	2,651		2,268		6,944		6,224
Total revenue	3,627		3,036		9,557		8,371
Cost of Sales:
Regulated	(896)		(644)		(2,335)		(1,806)
Non-Regulated	(1,839)		(1,632)		(5,237)		(4,413)
Total cost of sales	(2,735)		(2,276)		(7,572)		(6,219)
Operating margin	892		760		1,985		2,152
General and administrative expenses	(51)		(39)		(149)		(130)
Interest expense	(276)		(242)		(813)		(669)
Interest income	100		71		270		212
Loss on extinguishment of debt	(1)		(22)		(8)		(41)
Other expense	(10)		(12)		(51)		(32)
Other income	4		48		80		274
Gain on disposal and sale of business interests	1		22		—		81
Asset impairment expense	(50)		(29)		(533)		(1,374)
Foreign currency transaction gains (losses)	8		29		(60)		(8)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	617		586		721		465
Income tax expense	(145)		(126)		(186)		(75)
Net equity in earnings (losses) of affiliates	(26)		25		(54)		(15)
INCOME FROM CONTINUING OPERATIONS	446		485		481		375
Gain from disposal of discontinued businesses	—		—		—		4
NET INCOME	446		485		481		379
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(25)		(142)		(124)		(156)
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$	421	$	343	$	357	$	223
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
Income from continuing operations, net of tax	$	421	$	343	$	357	$	219
Income from discontinued operations, net of tax	—		—		—		4
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$	421	$	343	$	357	$	223
BASIC EARNINGS PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	$	0.63	$	0.52	$	0.53	$	0.32
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax	—		—		—		0.01
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$	0.63	$	0.52	$	0.53	$	0.33
DILUTED EARNINGS PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	$	0.59	$	0.48	$	0.50	$	0.31
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax	—		—		—		0.01
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$	0.59	$	0.48	$	0.50	$	0.32
DILUTED SHARES OUTSTANDING	711		711		711		701

See Notes to Condensed Consolidated Financial Statements.

4 | The AES Corporation

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
NET INCOME	$	446	$	485	$	481	$	379
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	(80)		(58)		(97)		(89)
Reclassification to earnings, net of $0 income tax for all periods	—		—		—		3
Total foreign currency translation adjustments	(80)		(58)		(97)		(86)
Derivative activity:
Change in derivative fair value, net of income tax benefit (expense) of $(62), $2, $(196), and $(17), respectively	189		(6)		731		62
Reclassification to earnings, net of income tax benefit (expense) of $1, $(10), $(12), and $(23), respectively	14		30		52		79
Total change in fair value of derivatives	203		24		783		141
Pension activity:
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax expense of $0, $1, $0, and $1, respectively	—		(1)		—		(1)
Reclassification to earnings, net of income tax benefit (expense) of $(1), $1, $(1), and $0, respectively	1		4		2		5
Total pension adjustments	1		3		2		4
OTHER COMPREHENSIVE INCOME (LOSS)	124		(31)		688		59
COMPREHENSIVE INCOME	570		454		1,169		438
Less: Comprehensive income attributable to noncontrolling interests and redeemable stock of subsidiaries	(50)		(125)		(207)		(172)
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE AES CORPORATION	$	520	$	329	$	962	$	266

See Notes to Condensed Consolidated Financial Statements.

5 | The AES Corporation

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

	Nine Months Ended September 30, 2022
	Preferred Stock			Common Stock			Treasury Stock			Additional Paid-In Capital (1)		Accumulated Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Shares	Amount(1)		Shares	Amount		Shares	Amount
	(in millions)
Balance at January 1, 2022	1.0	$	838	818.7	$	8	152.0	$	(1,845)	$	7,106	$	(1,089)	$	(2,220)	$	1,769
Net income	—	—		—	—		—	—		—		115		—		94
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		131		1
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		265		22
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		1		—
Total other comprehensive income	—	—		—	—		—	—		—		—		397		23
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(25)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(93)		—		(76)		(367)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		86
Sales to noncontrolling interests	—	—		—	—		—	—		7		—		—		30
Issuance of preferred shares in subsidiaries	—	—		—	—		—	—		—		—		—		60
Dividends declared on common stock ($0.1580/share)	—	—		—	—		—	—		(105)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		(1.1)	13		(12)		—		—		—
Balance at March 31, 2022	1.0	$	838	818.7	$	8	150.9	$	(1,832)	$	6,903	$	(974)	$	(1,899)	$	1,670
Net income (loss)	—	—		—	—		—	—		—		(179)		—		50
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		(146)		(3)
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		255		15
Total other comprehensive income	—	—		—	—		—	—		—		—		109		12
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(45)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		—		—		—		(2)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		3
Sales to noncontrolling interests	—	—		—	—		—	—		10		—		—		170
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		—	—		11		—		—		—
Balance at June 30, 2022	1.0	$	838	818.7	$	8	150.9	$	(1,832)	$	6,924	$	(1,153)	$	(1,790)	$	1,858
Net income	—	—		—	—		—	—		—		421		—		31
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		(75)		(4)
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		174		14
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		—		1
Total other comprehensive income	—	—		—	—		—	—		—		—		99		11
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(38)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(3)		—		—		(2)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		78
Sales to noncontrolling interests	—	—		—	—		—	—		(2)		—		—		114
Dividends declared on common stock ($0.1580/share)	—	—		—	—		—	—		(106)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		0.1	—		(0.1)	—		5		—		—		—
Balance at September 30, 2022	1.0	$	838	818.8	$	8	150.8	$	(1,832)	$	6,818	$	(732)	$	(1,691)	$	2,052

(1)     The balance at January 1, 2022 includes a $13 million reclass from Additional paid-in capital to Preferred stock to reflect the retrospective adoption of ASU 2020-06. For further information, see Note 1—Financial Statement Presentation.

6 | The AES Corporation

	Nine Months Ended September 30, 2021
	Preferred Stock			Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Shares	Amount		Shares	Amount		Shares	Amount
	(in millions)
Balance at January 1, 2021	—	$	—	818.4	$	8	153.0	$	(1,858)	$	7,561	$	(680)	$	(2,397)	$	2,086
Net income (loss)	—	—		—	—		—	—		—		(148)		—		119
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		(53)		(16)
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		219		27
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		—		1
Total other comprehensive income	—	—		—	—		—	—		—		—		166		12
Fair value adjustment (1)	—	—		—	—		—	—		33		—		—		—
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(17)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(5)		—		(6)		(3)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		94
Issuance of preferred stock	1.0	1,043		—	—		—	—		(235)		—		—		—
Dividends declared on common stock ($0.1505/share)	—	—		—	—		—	—		(101)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		0.2	—		(0.7)	8		(12)		—		—		—
Balance at March 31, 2021	1.0	$	1,043	818.6	$	8	152.3	$	(1,850)	$	7,241	$	(828)	$	(2,237)	$	2,291
Net income (loss)	—	—		—	—		—	—		—		28		—		(103)
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		30		11
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		(140)		(9)
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		1		(1)
Total other comprehensive income (loss)	—	—		—	—		—	—		—		—		(109)		1
Fair value adjustment (1)	—	—		—	—		—	—		(36)		—		—		—
Disposition of business interests (2)	—	—		—	—		—	—		—		—		—		(109)
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(117)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(2)		—		(1)		—
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		1
Sales to noncontrolling interests	—	—		—	—		—	—		—		—		—		17
Issuance of preferred shares in subsidiaries	—	—		—	—		—	—		—		—		—		151
Issuance of preferred stock	—	—		—	—		—	—		1		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		0.1	—		—	—		7		—		—		—
Balance at June 30, 2021	1.0	$	1043	818.7	$	8	152.3	$	(1,850)	$	7,211	$	(800)	$	(2,347)	$	2,132
Net income	—	—		—	—		—	—		—		343		—		145
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		(33)		(25)
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		18		6
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		1		2
Total other comprehensive loss	—	—		—	—		—	—		—		—		(14)		(17)
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(40)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(8)		—		(4)		—
Sales to noncontrolling interests	—	—		—	—		—	—		(6)		—		—		62
Dividends declared on AES common stock ($0.1505/share)	—	—		—	—		—	—		(100)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		(0.3)	4		2		—		—		—
Balance at September 30, 2021	1.0	$	1043	818.7	$	8	152.0	$	(1,846)	$	7,099	$	(457)	$	(2,365)	$	2,282

(1)     Adjustment to record the redeemable stock of Colon at fair value.

(2)     See Note 17—Held-For-Sale and Dispositions for further information.

See Notes to Condensed Consolidated Financial Statements.

7 | The AES Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2022		2021
	(in millions)
OPERATING ACTIVITIES:
Net income	$	481	$	379
Adjustments to net income:
Depreciation and amortization	800		795
Gain on disposal and sale of business interests	—		(81)
Impairment expense	533		1,374
Deferred income taxes	—		(77)
Loss on extinguishment of debt	8		41
Gain on remeasurement to acquisition date fair value	—		(220)
Loss of affiliates, net of dividends	78		28
Emissions allowance expense	319		209
Other	36		145
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(409)		(118)
(Increase) decrease in inventory	(361)		(70)
(Increase) decrease in prepaid expenses and other current assets	(116)		(36)
(Increase) decrease in other assets	251		25
Increase (decrease) in accounts payable and other current liabilities	108		(257)
Increase (decrease) in income tax payables, net and other tax payables	(131)		(375)
Increase (decrease) in deferred income	48		(360)
Increase (decrease) in other liabilities	4		(23)
Net cash provided by operating activities	1,649		1,379
INVESTING ACTIVITIES:
Capital expenditures	(2,711)		(1,534)
Acquisitions of business interests, net of cash and restricted cash acquired	(114)		(93)
Proceeds from the sale of business interests, net of cash and restricted cash sold	1		91
Sale of short-term investments	654		525
Purchase of short-term investments	(1,091)		(372)
Contributions and loans to equity affiliates	(202)		(321)
Affiliate repayments and returns of capital	71		195
Purchase of emissions allowances	(415)		(179)
Other investing	(18)		(40)
Net cash used in investing activities	(3,825)		(1,728)
FINANCING ACTIVITIES:
Borrowings under the revolving credit facilities	4,214		1,251
Repayments under the revolving credit facilities	(2,782)		(1,031)
Issuance of recourse debt	200		7
Repayments of recourse debt	(29)		(7)
Issuance of non-recourse debt	3,554		978
Repayments of non-recourse debt	(1,772)		(1,342)
Payments for financing fees	(83)		(19)
Distributions to noncontrolling interests	(129)		(173)
Acquisitions of noncontrolling interests	(541)		(17)
Contributions from noncontrolling interests	122		95
Sales to noncontrolling interests	336		81
Issuance of preferred shares in subsidiaries	60		151
Issuance of preferred stock	—		1,014
Dividends paid on AES common stock	(316)		(301)
Payments for financed capital expenditures	(23)		(6)
Other financing	52		(160)
Net cash provided by financing activities	2,863		521
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(44)		(25)
Increase in cash, cash equivalents and restricted cash of held-for-sale businesses	(93)		—
Total increase in cash, cash equivalents and restricted cash	550		147
Cash, cash equivalents and restricted cash, beginning	1,484		1,827
Cash, cash equivalents and restricted cash, ending	$	2,034	$	1,974
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	$	654	$	576
Cash payments for income taxes, net of refunds	203		407
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Notes payable issued for the acquisition of business interests (see Notes 11 and 18)	—		258
Non-cash consideration transferred for AES Clean Energy acquisitions (see Note 18)	—		99

See Notes to Condensed Consolidated Financial Statements.

8 | Notes to Condensed Consolidated Financial Statements | September 30, 2022 and 2021

Notes to Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2022 and 2021

(Unaudited)

1. FINANCIAL STATEMENT PRESENTATION

Consolidation — In this Quarterly Report, the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity, including its subsidiaries and affiliates. The terms “The AES Corporation” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, VIEs in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting, except for our investment in Alto Maipo, for which we have elected the fair value option as permitted under ASC 825. All intercompany transactions and balances have been eliminated in consolidation.

Interim Financial Presentation — The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of expected results for the year ending December 31, 2022. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2021 audited consolidated financial statements and notes thereto, which are included in the 2021 Form 10-K filed with the SEC on February 28, 2022 (the “2021 Form 10-K”).

Reclassifications — To comply with newly adopted accounting standards, certain prior period adjustments in the consolidated financial statements have been reclassified to conform to the current presentation. The beneficial conversion feature associated with the Equity Units was reclassified from Additional paid-in capital to Preferred stock in the Consolidated Balance Sheet for the year ended December 31, 2021. See further detail in the new accounting pronouncements discussion.

Cash, Cash Equivalents, and Restricted Cash — The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheet that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows (in millions):

	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	1,553	$	943
Restricted cash	314		304
Debt service reserves and other deposits	167		237
Cash, Cash Equivalents, and Restricted Cash	$	2,034	$	1,484

ASC 326 - Financial Instruments - Credit Losses - The following table represents the rollforward of the allowance for credit losses for the period indicated (in millions):

9 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

Nine Months Ended September 30, 2022	Accounts Receivable (1)		Mong Duong Loan Receivable (2)		Argentina Receivables		Lease Receivable (3)		Other		Total
CECL reserve balance at beginning of period	$	3	$	30	$	23	$	—	$	7	$	63
Current period provision	7		—		22		20		—		49
Write-offs charged against allowance	(9)		—		—		—		(6)		(15)
Recoveries collected	2		(1)		—		—		—		1
Foreign exchange	—		—		(8)		—		—		(8)
CECL reserve balance at end of period	$	3	$	29	$	37	$	20	$	1	$	90

Nine Months Ended September 30, 2021	Accounts Receivable (1)		Mong Duong Loan Receivable (2)		Argentina Receivables		Other		Total
CECL reserve balance at beginning of period	$	11	$	32	$	20	$	1	$	64
Current period provision	3		—		5		—		8
Write-offs charged against allowance	(8)		—		—		—		(8)
Recoveries collected	2		(1)		—		(1)		—
Foreign exchange	—		—		(3)		—		(3)
CECL reserve balance at end of period	$	8	$	31	$	22	$	—	$	61

_____________________________

(1)Excludes operating lease receivable allowances and contractual dispute allowances of $2 million as of September 30, 2022 and September 30, 2021, respectively. These reserves are not in scope under ASC 326.

(2)Mong Duong loan receivable credit losses allowance was reclassified to held-for-sale assets on the Condensed Consolidated Balance Sheet as of September 30, 2022.

(3)Lease receivable credit losses allowance at Southland Energy (AES Gilbert).

New Accounting Pronouncements Adopted in 2022 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

New Accounting Standards Adopted
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-05, Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments	The amendments in this update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (a) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3, (b) The lessor would have otherwise recognized a day-one loss. This update could be applied either (1) retrospectively to leases that commenced or were modified on or after the adoption of Update 2016-02 or (2) prospectively to leases that commence or are modified on or after the date that an entity first applies the amendments.	January 1, 2022	The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements.
2020-06, Debt - Debt with conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Equity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity’s Own Equity	The amendments in this update affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation.	January 1, 2022	The Company adopted this standard on a fully retrospective basis and its adoption resulted in a $13 million increase to Preferred Stock and a corresponding decrease to Additional paid-in capital. No impact to Earnings per Share amounts reported in 2021 or 2022.
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022	The Company is implementing the reference rate reform and does not expect these amendments to have a material impact on the financial statements.

10 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.

New Accounting Standards Issued But Not Yet Effective
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This update is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.
2022-04,Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations	This update is to provide additional information and disclosures about an entity’s use of supplier finance programs to see how these programs will affect an entity’s working capital, liquidity, and cash flows. Entities that use supplier finance programs as the buyer party should disclose (1) the key terms of the payment terms and assets pledged as security or other forms of guarantees provided and (2) the unpaid amount outstanding, a description of where those obligations are presented on the balance sheet, and a rollforward of those obligations during the annual period.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.

2. INVENTORY

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
Fuel and other raw materials	$	689	$	366
Spare parts and supplies	309		238
Total	$	998	$	604

3. FAIR VALUE

The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5—Fair Value in Item 8.—Financial Statements and Supplementary Data of our 2021 Form 10-K.

Recurring Measurements

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:

11 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

	September 30, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	639	$	—	$	639	$	—	$	199	$	—	$	199
Government debt securities	—		4		—		4		—		—		—		—
Total debt securities	—		643		—		643		—		199		—		199
EQUITY SECURITIES:
Mutual funds	26		10		—		36		31		13		—		44
Total equity securities	26		10		—		36		31		13		—		44
DERIVATIVES:
Interest rate derivatives	—		476		—		476		—		51		2		53
Cross-currency derivatives	—		—		—		—		—		5		—		5
Foreign currency derivatives	—		35		70		105		—		29		108		137
Commodity derivatives	—		225		18		243		—		32		6		38
Total derivatives — assets	—		736		88		824		—		117		116		233
TOTAL ASSETS	$	26	$	1,389	$	88	$	1,503	$	31	$	329	$	116	$	476
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	1	$	1	$	2	$	—	$	286	$	8	$	294
Cross-currency derivatives	—		36		—		36		—		11		—		11
Foreign currency derivatives	—		34		—		34		—		35		—		35
Commodity derivatives	—		239		16		255		—		37		7		44
Total derivatives — liabilities	—		310		17		327		—		369		15		384
TOTAL LIABILITIES	$	—	$	310	$	17	$	327	$	—	$	369	$	15	$	384

As of September 30, 2022, all available-for-sale debt securities had stated maturities within one year. There were no other-than-temporary impairments of marketable securities during the three and nine months ended September 30, 2022. Credit-related impairments are recognized in earnings under ASC 326. Gains and losses on the sale of investments are determined using the specific-identification method. 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,
	2022		2021		2022		2021
Gross proceeds from sale of available-for-sale securities	$	318	$	207	$	665	$	507

The following tables present a reconciliation of net derivative 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, 2022 and 2021 (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.

12 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

Three Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	1	$	—	$	50	$	37	$	88
Total realized and unrealized gains (losses):
Included in earnings	1		—		22		(1)		22
Included in other comprehensive income — derivative activity	(1)		—		7		(14)		(8)
Included in regulatory (assets) liabilities	—		—		—		(3)		(3)
Settlements	—		—		(9)		—		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		(2)		(2)
Transfers of (assets) liabilities, net out of Level 3	(2)		—		—		(15)		(17)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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)	$	13
Three Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	(192)	$	(32)	$	97	$	15	$	(112)
Total realized and unrealized gains (losses):
Included in earnings	12		20		22		(1)		53
Included in other comprehensive income — derivative activity	(14)		—		7		(15)		(22)
Included in other comprehensive income — foreign currency translation activity	—		2		—		—		2
Included in regulatory (assets) liabilities	—		—		—		(2)		(2)
Settlements	12		—		(9)		1		4
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	—	$	4	$	15	$	(1)	$	18

Nine Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(6)	$	—	$	108	$	(1)	$	101
Total realized and unrealized gains (losses):
Included in earnings	4		—		(22)		(4)		(22)
Included in other comprehensive income — derivative activity	13		—		(7)		(7)		(1)
Included in regulatory (assets) liabilities	—		—		—		13		13
Settlements	(1)		—		(9)		1		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(11)		—		—		—		(11)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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	$	3	$	—	$	(44)	$	1	$	(40)
Nine Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(236)	$	(2)	$	146	$	2	$	(90)
Total realized and unrealized gains (losses):
Included in earnings	13		(13)		(1)		(1)		(2)
Included in other comprehensive income — derivative activity	6		—		(1)		(3)		2
Included in other comprehensive income — foreign currency translation activity	—		4		—		—		4
Included in regulatory (assets) liabilities	—		—		—		1		1
Settlements	35		1		(27)		(1)		8
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	1	$	4	$	(29)	$	(1)	$	(25)

13 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2022 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiaries’ credit spreads	1% - 2.2% (2.1%)
Foreign currency:
Argentine peso	70		Argentine peso to U.S. dollar currency exchange rate after one year	272 - 748 (498)
Commodity:
Other	2
Total	$	71

For interest rate derivatives and foreign currency derivatives, increases (decreases) in the estimates of the Company’s own credit spreads would decrease (increase) the value of the derivatives in a liability position. For foreign currency derivatives, increases (decreases) in the estimate of the above exchange rate would increase (decrease) the value of the derivative.

Nonrecurring Measurements

The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense, as applicable, on the Condensed Consolidated Statements of Operations. The following table summarizes our major categories of assets measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2022				Level 1		Level 2		Level 3
Long-lived assets held and used:
Maritza	4/30/2022	$	920	$	—	$	—	$	452	$	468
Held-for-sale businesses: (2)
Jordan (3)	9/30/2022	$	216	$	—	$	170	$	—	$	51
	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2021				Level 1		Level 2		Level 3
Long-lived assets held and used:
Puerto Rico	3/31/2021	$	548	$	—	$	—	$	73	$	475
Mountain View I & II	4/30/2021	78		—		—		11		67
Ventanas 3 & 4	6/30/2021	661		—		—		12		649
Angamos	6/30/2021	241		—		—		86		155
Dispositions: (2)
Estrella del Mar I	9/30/2021	$	17	$	—	$	6	$	—	$	11

_____________________________

(1)Represents the carrying values at the dates of measurement, before fair value adjustment.

(2)See Note 17 — Held-for-Sale and Dispositions for further information.

(3)The Jordan disposal group was written down to it’s fair value of $170 million. The resulting pre-tax loss of $51 million includes costs to sell of $5 million.

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, 2022 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Maritza	$	452	Discounted cash flow	Annual revenue growth	(66)% to 11% (-11%)
				Annual variable margin	(66)% to 23% (-1%)
				Weighted-average cost of capital	20% to 25% (21%)
Total	$	452

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:

14 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

		September 30, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	92	$	132	$	—	$	—	$	132
Liabilities:	Non-recourse debt	17,358		16,368		—		14,870		1,498
	Recourse debt	4,668		4,175		—		4,175		—

		December 31, 2021
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	55	$	117	$	—	$	—	$	117
Liabilities:	Non-recourse debt	14,811		16,091		—		16,065		26
	Recourse debt	3,754		3,818		—		3,818		—

_____________________________

(1)These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $2 million as of September 30, 2022 and December 31, 2021.

4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2021 Form 10-K.

Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of September 30, 2022, 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 Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	6,464	2059
Cross-currency swaps (Brazilian real)	254		2026
Foreign Currency:
Colombian peso	120		2024
Euro	54		2024
Mexican peso	53		2023
Brazilian real	36		2024
Chilean peso	27		2024
Argentine peso	7		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	106	2029
Power (in MWhs)	22	2040
Coal (in Tons or Metric Tons)	6	2027

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	September 30, 2022						December 31, 2021
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	475	$	1	$	476	$	53	$	—	$	53
Cross-currency derivatives	—		—		—		5		—		5
Foreign currency derivatives	20		85		105		28		109		137
Commodity derivatives	19		224		243		6		32		38
Total assets	$	514	$	310	$	824	$	92	$	141	$	233
Liabilities
Interest rate derivatives	$	2	$	—	$	2	$	288	$	6	$	294
Cross-currency derivatives	36		—		36		11		—		11
Foreign currency derivatives	22		12		34		23		12		35
Commodity derivatives	14		241		255		11		33		44
Total liabilities	$	74	$	253	$	327	$	333	$	51	$	384

15 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

	September 30, 2022				December 31, 2021
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	284	$	157	$	85	$	83
Noncurrent	540		170		148		301
Total	$	824	$	327	$	233	$	384

Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	238	$	10	$	865	$	97
Cross-currency derivatives	—		(14)		—		(11)
Foreign currency derivatives	8		(7)		(4)		(27)
Commodity derivatives	5		3		66		20
Total	$	251	$	(8)	$	927	$	79
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(11)	$	(24)	$	(61)	$	(76)
Cross-currency derivatives	—		(13)		—		(15)
Foreign currency derivatives	2		(7)		2		(12)
Commodity derivatives	(4)		4		(5)		1
Total	$	(13)	$	(40)	$	(64)	$	(102)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	6	$	(22)	$	(29)	$	(10)
Hedged items	—		27		22		8
Total	$	6	$	5	$	(7)	$	(2)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	—	$	(16)	$	—
Gain reclassified from AOCL to earnings due to change in forecast	$	2	$	—	$	17	$	—
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	1	$	(1)	$	4	$	104
Foreign currency derivatives	35		28		20		24
Commodity derivatives and other	3		17		20		(64)
Total	$	39	$	44	$	44	$	64

AOCL is expected to decrease pre-tax income from continuing operations for the nine months ended September 30, 2023 by $24 million, primarily due to interest rate derivatives.

5. FINANCING RECEIVABLES

Receivables with contractual maturities of greater than one year are considered financing receivables. The following table presents financing receivables by country as of the dates indicated (in millions):

	September 30, 2022						December 31, 2021
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
U.S.	$	49	$	—	$	49	$	—	$	—	$	—
Chile	17		—		17		17		—		17
Argentina	6		—		6		11		1		10
Other	22		—		22		30		—		30
Total	$	94	$	—	$	94	$	58	$	1	$	57

U.S. — AES has recorded a non-current receivable in connection with future premium payments on a heat rate call option entered into on behalf of the Southland Energy CCGT units. The premium payments are expected to be received in 2024.

Chile — AES Andes has recorded noncurrent receivables pertaining to revenues recognized on regulated energy contracts that were impacted by the Stabilization Fund created by the Chilean government in October 2019, in conjunction with the Tariff Stabilization Law. Historically, the government updated the prices for these contracts every six months to reflect the indexation the contracts have to exchange rates and commodities prices. The Stabilization Fund does not allow the pass-through of these contractual indexation updates to customers beyond the

16 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

pricing in effect at July 1, 2019, until new lower-cost renewable contracts are incorporated into pricing in 2023. Consequently, costs incurred in excess of the July 1, 2019 price will be accumulated and borne by generators.

Argentina — Collection of the principal and interest on these receivables is subject to various business risks and uncertainties, including, but not limited to, the operation of power plants which generate cash for payments of these receivables, regulatory changes that could impact the timing and amount of collections, and economic conditions in Argentina. The Company monitors these risks, including the credit ratings of the Argentine government, on a quarterly basis to assess the collectability of these receivables. The Company accrues interest on these receivables once the recognition criteria have been met. The Company’s collection estimates are based on assumptions that it believes to be reasonable, but are inherently uncertain. Actual future cash flows could differ from these estimates.

6. INVESTMENTS IN AND ADVANCES TO AFFILIATES

Summarized Financial Information — The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates (1)				Majority-Owned Unconsolidated Subsidiaries
Nine Months Ended September 30,	2022		2021		2022		2021
Revenue	$	1,218	$	866	$	1	$	1
Operating margin (loss)	(322)		45		—		—
Net loss	(410)		(108)		—		(4)

_______________________________

(1)         As of July 1, 2021, AES began to account for its investment in Fluence quarterly, on a three-month lag. This shift in timing is necessary due to the nature of the entity subsequent to its IPO.

Alto Maipo — On May 26, 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore will not consolidate the entity. The Company has elected the fair value option to account for its investment in Alto Maipo as management believes this approach will better reflect the economics of its equity interest. As of September 30, 2022, the fair value is insignificant. Alto Maipo is reported in the South America SBU reportable segment.

Gas Natural Atlántico II — On September 13, 2021, the Company acquired the remaining equity interest in Gas Natural Atlántico II, S. de. R.L., a partnership whose purpose is to construct transmission lines for Colon. After additional assets were acquired, the Company remeasured the investment at the acquisition-date fair value, resulting in the recognition of a $6 million gain, recorded in Other income on the Condensed Consolidated Statement of Operations. The partnership, previously recorded as an equity method investment, is now consolidated by AES and is reported in the MCAC SBU reportable segment.

Uplight — On July 27, 2021, the Company closed on a transaction involving existing and new shareholders of Uplight. As part of the transaction, the Company contributed $37 million to Uplight however AES’s ownership interest in Uplight decreased from 32.3% to 29.6% primarily due to larger contributions from other investors. The transaction was accounted for as a partial disposition in which AES recognized a loss of $11 million in Gain on disposal and sale of business interests, mainly as a result of payments to holders of stock options and income units as well as expenses associated with the transaction. As the Company still does not control Uplight after the transaction, it continues to be accounted for as an equity method investment and is reported as part of Corporate and Other.

Fluence — On June 9, 2021, Fluence issued new shares to the Qatar Investment Authority (“QIA”) for $125 million, which following the completion of the transaction, represented a 13.6% ownership interest in Fluence. As a result of the transaction, which AES has accounted for as a partial disposition, AES’ ownership interest in Fluence decreased from 50% to 43.2%. The Company recognized a gain of $60 million in Gain on disposal and sale of business interests.

On November 1, 2021, Fluence completed its IPO of 35,650,000 of its Class A common stock at a price of $28 per share, including the exercise of the underwriter’s option. Fluence received approximately $936 million in proceeds, after expenses, and as a result of the transaction, AES’ ownership interest in Fluence decreased to 34.2%. As the Company still does not control Fluence after these transactions, it continues to be accounted for as an equity method investment and is reported as part of Corporate and Other.

Grupo Energía Gas Panamá — In April 2021, Grupo Energía Gas Panamá, a joint venture between AES and InterEnergy Power & Gas Limited, completed the acquisition of a combined cycle natural gas development project.

17 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

AES holds a 49% ownership interest in the affiliate. The Company contributed $21 million to the joint venture as of September 30, 2021 and has contributed a total of $45 million as of September 30, 2022. As the Company does not control the joint venture, it is accounted for as an equity method investment and is reported in the MCAC SBU reportable segment.

sPower — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, a consolidated entity, which will serve as the development vehicle for all future renewable projects in the U.S. Since the sPower development platform was carved-out of AES’ existing equity method investment, this transaction resulted in a $102 million decrease in the carrying value of the sPower investment and the Company recognized a gain of $214 million in Other income. See Note 18—Acquisitions for further information. As the Company still does not control sPower after the transaction, it continues to be accounted for as an equity method investment and is reported in the US and Utilities SBU reportable segment.

Guacolda — In February 2021, AES Andes entered into an agreement to sell its 50% ownership interest in Guacolda for $34 million. On July 20, 2021, the Company completed the sale, resulting in a pre-tax gain on sale of $34 million, recorded in Gain on disposal and sale of business interests. Prior to its sale, the Guacolda equity method investment was reported in the South America SBU reportable segment.

7. DEBT

Recourse Debt

In September 2022, AES executed an amendment to its revolving credit facility. The aggregate commitment under the new agreement is $1.5 billion and matures in August 2027. The existing credit agreement had an aggregate commitment of $1.25 billion and matured in September 2026. As of September 30, 2022, AES had outstanding drawings under its revolving credit facility of $1.1 billion.

In September 2022, the AES Corporation entered into a term loan agreement, under which AES can obtain term loans in an aggregate principal amount of up to $200 million, with all term loans to mature no later than September 30, 2024. On September 30, 2022 the AES Corporation borrowed $200 million under this agreement with a maturity date of September 30, 2024.

In July 2021, AES offered to exchange up to $800 million of the newly registered 1.375% Senior Notes due in 2026 for up to $800 million of the existing unregistered 1.375% Senior Notes due in 2026 and up to $1 billion of our newly registered 2.45% Senior Notes due in 2031 for up to $1 billion of the existing unregistered 2.45% Senior Notes due in 2031. The terms of the new notes are identical in all material respects to the terms of the old notes with the exception that the new notes have been registered under the Securities Act of 1933, as amended, and the transfer restrictions and registration rights relating to the old notes do not apply to the new notes. In August 2021, $798 million and $997 million of the 2026 and 2031 Notes were exchanged under the offer, respectively. Although not all investors participated in the exchange, there was no change to the outstanding indebtedness.

Non-Recourse Debt

During the nine months ended September 30, 2022, the Company’s subsidiaries had the following significant debt transactions:

Subsidiary	Transaction Period	Issuances		Repayments
AES Andes (1)	Q1, Q2, Q3	$	577	$	(95)
AES Brasil	Q1, Q2	469		(201)
United Kingdom	Q1	710		(350)
Netherlands/Panama	Q1	500		—
El Salvador	Q2	348		(345)
AES Indiana	Q2	200		—
AES Ohio	Q2	140		—
AES Clean Energy	Q2	139		(119)
AES Renewable Holdings	Q3	139		—
AES Dominicana Renewable Energy	Q3	120		—

18 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

_____________________________

(1)Issuances relate to AES Andes S.A. and Chivor.

Netherlands and Panama — In March 2022, AES Hispanola Holdings BV, a Netherlands based company, and Colon, as co-borrowers, executed a $500 million bridge loan due in 2023. The Company allocated $450 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively.

United Kingdom — On January 6, 2022, Mercury Chile HoldCo LLC (“Mercury Chile”), a UK based company, executed a $350 million bridge loan and used the proceeds, as well as an additional capital contribution of $196 million from the Parent Company, to purchase the minority interest in AES Andes through intermediate holding companies (see Note 11—Equity for further information). On January 24, 2022, Mercury Chile issued $360 million aggregate principal of 6.5% senior secured notes due in 2027 and used the proceeds from the issuance to fully prepay the $350 million bridge loan.

Non-Recourse Debt Covenants, Restrictions, and Defaults — The terms of the Company's non-recourse debt include certain financial and nonfinancial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include, but are not limited to, maintenance of certain reserves and financial ratios, minimum levels of working capital, and limitations on incurring additional indebtedness.

As of September 30, 2022 and December 31, 2021, approximately $278 million and $370 million, respectively, of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements. These amounts were included within Restricted cash and Debt service reserves and other deposits in the accompanying Condensed Consolidated Balance Sheets.

Various lender and governmental provisions restrict the ability of certain of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $1.1 billion at September 30, 2022.

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of September 30, 2022. Due to the defaults, these amounts are included in the current portion of non-recourse debt:

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets
AES Puerto Rico	Covenant	$	170	$	(181)
AES Jordan PSC (1)	Covenant	69		76
AES Ilumina (Puerto Rico)	Covenant	27		27
AES Jordan Solar	Covenant	7		11
Total		$	273

_____________________________

(1)Classified as current held-for-sale liability on the Condensed Consolidated Balance Sheets.

The above defaults are not payment defaults. In Puerto Rico, the subsidiary non-recourse debt defaults were triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents due to the bankruptcy of the offtaker.

The AES Corporation’s recourse debt agreements include cross-default clauses that will trigger if a subsidiary or group of subsidiaries for which the non-recourse debt is in default provides 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently completed fiscal quarters. As of September 30, 2022, the Company had no defaults which resulted in, or were at risk of triggering, a cross-default under the recourse debt of the Parent Company. In the event the Parent Company is not in compliance with the financial covenants of its revolving credit facility, restricted payments will be limited to regular quarterly shareholder dividends at the then-prevailing rate. Payment defaults and bankruptcy defaults would preclude the making of any restricted payments.

8. COMMITMENTS AND CONTINGENCIES

Guarantees, Letters of Credit and Commitments — In connection with certain project financings, acquisitions and dispositions, power purchases and other agreements, the Parent Company has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. In the normal course of business, the Parent Company has entered into various agreements, mainly guarantees and letters of credit, to provide financial or performance assurance to third parties on behalf of AES businesses. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a business on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish their intended business purposes. Most of the contingent obligations relate to future

19 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

performance commitments which the Company or its businesses expect to fulfill within the normal course of business. The expiration dates of these guarantees vary from less than one year to no more than 16 years.

The following table summarizes the Parent Company’s contingent contractual obligations as of September 30, 2022. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,282	81	$0 — 400
Letters of credit under the unsecured credit facilities	156		44	$0 — 36
Letters of credit under the revolving credit facility	26		12	$0 — 15
Surety bonds	2		2	$1
Total	$	2,466	139

During the nine months ended September 30, 2022, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts of letters of credit.

Contingencies

Environmental — The Company periodically reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. For the periods ended September 30, 2022 and December 31, 2021, the Company recognized liabilities of $10 million and $4 million, respectively, for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of compliance or remediation could be higher or lower than the amount currently accrued. Moreover, where no liability has been recognized, it is reasonably possible that the Company may be required to incur remediation costs or make expenditures in amounts that could be material but could not be estimated as of September 30, 2022. In aggregate, the Company estimates the range of potential losses related to environmental matters, where estimable, to be up to $12 million. The amounts considered reasonably possible do not include amounts accrued as discussed above.

Litigation — The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has recognized aggregate liabilities for all claims of approximately $23 million as of September 30, 2022 and December 31, 2021. These amounts are reported on the Condensed Consolidated Balance Sheets within Accrued and other liabilities and Other noncurrent liabilities. A significant portion of these accrued liabilities relate to regulatory matters and commercial disputes in international jurisdictions. There can be no assurance that these accrued liabilities will be adequate to cover all existing and future claims or that we will have the liquidity to pay such claims as they arise.

Where no accrued liability has been recognized, it is reasonably possible that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material but could not be estimated as of September 30, 2022. The material contingencies where a loss is reasonably possible primarily include disputes with offtakers, suppliers and EPC contractors; alleged breaches of contract; alleged violation of laws and regulations; income tax and non-income tax matters with tax authorities; and regulatory matters. In aggregate, the Company estimates the range of potential losses, where estimable, related to these reasonably possible material contingencies to be between $239 million and $704 million. The amounts considered reasonably possible do not include the amounts accrued, as discussed above. These material contingencies do not include income tax-related contingencies which are considered part of our uncertain tax positions.

Tietê GSF Settlement — In accordance with the regulation published by ANEEL in December 2020 regarding the incorrect application of the GSF mechanism between 2013 and 2018, Tietê will be compensated in the form of a concession extension period, initially determined to be 2.7 years, which will be amortized from the date of the agreement until the end of the new concession period. As of December 31, 2020, the compensation to be received from the concession extension was estimated to have a fair value of $184 million, based on a preliminary time-value equivalent calculation made by the CCEE. In March 2021, the CCEE’s final calculation of fair value was $190 million and the Company recognized an additional reversal of Non-Regulated Cost of Sales of $6 million. In August 2021, ANEEL published Resolution 2.919/2021, establishing an extension for the end of the concession originally granted to AES Brasil’s hydroelectric plants, from 2029 to 2032. On April 14, 2022, the amended term was finalized and agreed upon by ANEEL and AES.

20 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

9. LEASES

LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Revenue	2022		2021		2022		2021
Total lease revenue	$	134	$	193	$	408	$	454
Less: Variable lease revenue	(14)		(24)		(37)		(63)
Total Non-variable lease revenue	$	120	$	169	$	371	$	391

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment, net for the periods indicated (in millions):

Property, Plant and Equipment, Net	September 30, 2022		December 31, 2021
Gross assets	$	1,701	$	2,423
Less: Accumulated depreciation	(398)		(765)
Net assets	$	1,303	$	1,658

The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of September 30, 2022. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.

The following table shows the future lease receipts as of September 30, 2022 for the remainder of 2022 through 2026 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2022	$	6	$	121
2023	24		372
2024	24		373
2025	24		374
2026	24		273
Thereafter	361		723
Total	$	463	$	2,236
Less: Imputed interest	(263)
Present value of total lease receipts	$	200

Battery Storage Lease Arrangements — The Company constructs and operates projects consisting only of a stand-alone battery energy storage system (“BESS”) facility, as well as projects that pair a BESS with solar energy systems. These projects allow more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. These arrangements include both lease and non-lease elements under ASC 842, with the BESS component typically constituting a sales-type lease. The Company recognized lease income on sales-type leases through interest income of $4 million and $20 million for the three and nine months ended September 30, 2022, respectively; and $3 million and $11 million for the three and nine months ended September 30, 2021, respectively. During the second quarter of 2022, the Company recognized a full allowance of $20 million on a sales-type lease receivable at AES Gilbert. See Note 14—Other Income and Expense for further information.

Prior to January 1, 2022, due to the variable-based nature of lease payments under certain contracts, the Company recorded a loss at commencement of sales-type leases of $13 million for the nine months ended September 30, 2021. These amounts are recognized in Other expense in the Condensed Consolidated Statement of Operations. See Note 14—Other Income and Expense for further information. Effective January 1, 2022, the Company adopted ASU 2021-05 in which lessors classify and account for certain leases with primarily variable-based lease payments as operating leases. The Company adopted this standard on a prospective basis. See Note 1—Financial Statement Presentation for further information.

21 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

10. REDEEMABLE STOCK OF SUBSIDIARIES

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
IPALCO common stock	$	700	$	700
AES Clean Energy Development common stock	424		497
AES Indiana preferred stock	60		60
Potengi common and preferred stock	17		—
Total redeemable stock of subsidiaries	$	1,201	$	1,257

Potengi — In March 2022, Tucano Holding I (“Tucano”), a subsidiary of AES Brasil, issued new shares in the Potengi wind development project. BRF S.A. (“BRF”) acquired shares representing 24% of the equity in the project for $12 million, reducing the Company’s indirect ownership interest in Potengi to 35.5%. As the Company maintained control after the transaction, Potengi continues to be consolidated by the Company. As part of the transaction, BRF was given an option to sell its entire ownership interest at the conclusion of the PPA term. As a result, the minority ownership interest is considered temporary equity, which will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized against permanent equity in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable.

AES Clean Energy Development — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, which will serve as the development vehicle for all future renewable projects in the U.S. As part of the transaction, AlMCo, our existing partner in the sPower equity method investment, received a 25% minority ownership interest in the newly formed entity along with certain partnership rights, though not currently in effect, that would enable AIMCo to exit in the future. As a result, the minority ownership interest is considered temporary equity.

During the second quarter of 2021, the Company recorded measurement period adjustments to the estimated fair values of the sPower and AES Renewable Holdings development platforms and the value of the partnership rights initially recorded in the first quarter of 2021, which resulted in a $81 million increase in the value of the temporary equity. These measurement period adjustments primarily relate to higher expected developer profits and a higher growth rate, reflective of additional information that became available regarding market participants’ views of the value of early-stage renewable development projects as of the date of acquisition. The temporary equity will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized against permanent equity in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable. See Note 18—Acquisitions for further information.

11. EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

Upon reconsideration of the nature of the Equity Units, the Company re-evaluated its accounting assessment and concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In the fourth quarter of 2021, the Company also corrected the classification of certain amounts in the Consolidated Balance Sheet and Statement of Changes in Equity to reflect the 2024 Purchase Contracts and Series A Preferred Stock as one unit of account. The corrections have no impact on the Company's net earnings, total assets, cash flows, or segment information.

22 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,275,962 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of September 30, 2022, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8680, equivalent to a reference price of $25.85. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of September 30, 2022, the present value of the Contract Adjustment Payments was $106 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

23 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

AES Clean Energy — During the second and third quarters of 2022, AES Clean Energy, through multiple transactions, sold noncontrolling interests in multiple project companies to tax equity partners, resulting in a $98 million and $112 million increase to NCI, respectively. AES Clean Energy is reported in the US and Utilities SBU reportable segment.

AES Brasil — On December 18, 2020, the AES Tietê board approved a proposal for the corporate reorganization and exchange of shares issued by AES Tietê with newly issued shares of AES Brasil, a formerly wholly-owned entity of AES Tietê, with the intent to list AES Brasil on Novo Mercado, a listing segment of the Brazilian stock exchange that requires equity capital to be composed only of common shares, as the 100% shareholder of AES Tietê. The reorganization and the exchange of shares was completed on March 26, 2021, and the shares issued by AES Brasil started trading on Novo Mercado on March 29, 2021. The Company maintains majority representation on AES Brasil’s board of directors, and as such, continues to consolidate AES Brasil.

Through multiple transactions in the first half of 2021, AES Holdings Brasil Ltda. acquired an additional 1.6% ownership in AES Brasil for $17 million. These transactions increased the Company’s ownership interest in AES Brasil to 45.7% and resulted in a $13 million decrease in Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $6 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $7 million.

In September 2022, AES Brasil commenced a private placement offering for its existing shareholders to subscribe for up to 107 million newly issued shares. AES Holdings Brasil Ltda. subscribed for 54 million shares and noncontrolling interest holders subscribed for 53 million shares, thereby increasing AES’ indirect beneficial interest in AES Brasil to 47.4%. AES Brasil received $77 million from noncontrolling interest holders during the third quarter of 2022, prior to the issuance of the shares in October 2022. Since the consideration received was nonrefundable, the impact was recorded in noncontrolling interests. AES Brasil is reported in the South America SBU reportable segment.

Chile Renovables — On July 29, 2021, AES Andes completed the sale of a 49% ownership interest in Chile Renovables SpA (“Chile Renovables”), a subsidiary which owns the Los Cururos wind facility, to Global Infrastructure Management, LLC (“GIP”) for $53 million. AES Andes retained a 51% ownership interest in Chile Renovables and the transaction decreased the Company’s indirect ownership in the subsidiary to 34%. As part of the transaction, AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP will make additional contributions to maintain its 49% ownership interest.

In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the South America SBU reportable segment.

Guaimbê Holding — In April 2021, Guaimbê Solar Holding S.A (“Guaimbê Holding”), a subsidiary of AES Brasil which wholly owns the Guaimbê solar complex and the Alto Sertão II wind facility, issued preferred shares representing 19.9% ownership in the subsidiary for total proceeds of $158 million. The transaction decreased the Company’s indirect ownership interest in the operational entities from 45.3% to 36.3%.

In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued additional preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction further decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the South America SBU reportable segment.

AES Andes — On December 29, 2020, AES Andes commenced a preemptive rights offering for its existing shareholders to subscribe for up to 1.98 billion of newly issued shares to fund its renewable growth program. The period ended on February 5, 2021 and Inversiones Cachagua SpA (“Cachagua”), an AES subsidiary, subscribed for 1.35 billion shares at a cost of $205 million, increasing AES’ indirect beneficial interest in AES Andes from 67% to 67.1%. The noncontrolling interest holders subscribed for 629 million shares, resulting in additional capital contributions of $94 million.

24 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

In January 2022, Cachagua completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98%. Through multiple transactions following the tender offer, Cachagua acquired an additional 1% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 99%. These transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the South America SBU reportable segment.

Colon — On September 13, 2021, the Company acquired the remaining 49.9% minority ownership interest in Colon. Following the completion of the transaction, the Company is now the sole owner of Colon. In conjunction with the acquisition, a note payable was recorded that is expected to be satisfied over two installments by the end of 2023. This transaction resulted in a $12 million decrease in Parent Company Stockholders’ Equity due to a decrease in additional paid-in-capital of $8 million and the reclassification of accumulated other comprehensive losses from Redeemable stock of subsidiaries to AOCL of $4 million. Colon is reported in the MCAC SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2022 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,734)	$	(456)	$	(30)	$	(2,220)
Other comprehensive income (loss) before reclassifications	(90)		653		—		563
Amount reclassified to earnings	—		41		1		42
Other comprehensive income (loss)	(90)		694		1		605
Reclassification from NCI due to share repurchases	(53)		(20)		(3)		(76)
Balance at the end of the period	$	(1,877)	$	218	$	(32)	$	(1,691)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign currency translation adjustment, net
	Gain on disposal and sale of business interests	$	—	$	—	$	—	$	(3)
	Net income attributable to The AES Corporation	$	—	$	—	$	—	$	(3)
Derivative gains (losses), net
	Non-regulated revenue	$	—	$	(1)	$	(1)	$	(1)
	Non-regulated cost of sales	(5)		2		(7)		(2)
	Interest expense	(9)		(33)		(42)		(62)
	Asset impairment expense	—		—		(16)		(13)
	Foreign currency transaction gains (losses)	2		(7)		2		(12)
	Income from continuing operations before taxes and equity in earnings of affiliates	(12)		(39)		(64)		(90)
	Income tax expense	(1)		10		12		23
	Net equity in earnings (losses) of affiliates	(1)		(1)		—		(12)
	Net income	(14)		(30)		(52)		(79)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	3		9		11		22
	Net income attributable to The AES Corporation	$	(11)	$	(21)	$	(41)	$	(57)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(2)	$	(1)	$	(3)
	Non-regulated cost of sales	—		(1)		—		(1)
	Other expense	(2)		—		(2)		(1)
	Income from continuing operations before taxes and equity in earnings of affiliates	(2)		(3)		(3)		(5)
	Income tax expense	1		(1)		1		—
	Net income	(1)		(4)		(2)		(5)
	Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	1		2		1		2
	Net income attributable to The AES Corporation	$	—	$	(2)	$	(1)	$	(3)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(11)	$	(23)	$	(42)	$	(63)

Common Stock Dividends — The Parent Company paid dividends of $0.1580 per outstanding share to its common stockholders during the first, second, and third quarters of 2022 for dividends declared in December 2021, February 2022 and July 2022, respectively.

25 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

On October 7, 2022, the Board of Directors declared a quarterly common stock dividend of $0.1580 per share payable on November 15, 2022, to shareholders of record at the close of business on November 1, 2022.

12. SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally and is mainly organized by geographic regions, which provides a socio-political-economic understanding of our business. The management reporting structure is organized by four SBUs led by our President and Chief Executive Officer: US and Utilities, South America, MCAC, and Eurasia SBUs. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. In January 2022, we internally announced a reorganization as a part of our ongoing strategy to align our business to meet our customers' needs and deliver on our major strategic objectives. The Company performed an assessment in accordance with ASC 280 and determined there were no changes to its operating or reportable segments.

Corporate and Other — Included in “Corporate and Other” are the results of the AES self-insurance company and certain equity affiliates, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

The Company uses Adjusted PTC as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities. The Company has concluded that Adjusted PTC better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company’s results.

Revenue and Adjusted PTC are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees, and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2022		2021		2022		2021
US and Utilities SBU	$	1,506	$	1,327	$	3,820	$	3,248
South America SBU	926		896		2,616		2,744
MCAC SBU	940		559		2,192		1,584
Eurasia SBU	261		257		947		804
Corporate and Other	24		21		83		82
Eliminations	(30)		(24)		(101)		(91)
Total Revenue	$	3,627	$	3,036	$	9,557	$	8,371

26 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Adjusted PTC	2022		2021		2022		2021
Income from continuing operations before taxes and equity in earnings of affiliates	$	617	$	586	$	721	$	465
Add: Net equity in earnings (losses) of affiliates	(26)		25		(54)		(15)
Less: Income from continuing operations before taxes, attributable to noncontrolling interests and redeemable stock of subsidiaries	(42)		(117)		(161)		(140)
Pre-tax contribution	549		494		506		310
Unrealized derivative and equity securities losses (gains)	(8)		(53)		(2)		24
Unrealized foreign currency losses	3		11		23		5
Disposition/acquisition losses (gains)	4		(33)		36		(277)
Impairment losses	17		18		497		1,121
Loss on extinguishment of debt	4		27		20		51
Net gains from early contract terminations at Angamos	—		(36)		—		(256)
Total Adjusted PTC	$	569	$	428	$	1,080	$	978

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Adjusted PTC	2022		2021		2022		2021
US and Utilities SBU	$	192	$	254	$	319	$	426
South America SBU	102		83		375		267
MCAC SBU	298		81		422		213
Eurasia SBU	47		45		154		144
Corporate and Other	(63)		(47)		(213)		(109)
Eliminations	(7)		12		23		37
Total Adjusted PTC	$	569	$	428	$	1,080	$	978

Total Assets	September 30, 2022		December 31, 2021
US and Utilities SBU	$	19,828	$	16,512
South America SBU	9,054		7,728
MCAC SBU	5,249		4,545
Eurasia SBU	2,708		3,466
Corporate and Other	936		712
Total Assets	$	37,775	$	32,963

27 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

13. 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

_______________________________

(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.

28 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

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.

14. OTHER INCOME AND EXPENSE

Other income generally includes gains on insurance recoveries in excess of property damage, gains on asset sales and liability extinguishments, favorable judgments on contingencies, allowance for funds used during construction, and other income from miscellaneous transactions. Other expense generally includes losses on asset sales and dispositions, losses on legal contingencies, defined benefit plan non-service costs, and losses from other miscellaneous transactions. The components are summarized as follows (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Other Income	Gain on remeasurement of investment (1)	$	—	$	—	$	26	$	—
	Insurance proceeds (2)	—		—		16		—
	AFUDC (US Utilities)	4		2		9		6
	Legal settlements	—		—		6		—
	Gain on acquired customer contracts	—		—		5		—
	Gain on remeasurement of contingent consideration (3)	—		32		3		32
	Gain on remeasurement to acquisition-date fair value (4)	—		8		—		220
	Other	—		6		15		16
	Total other income	$	4	$	48	$	80	$	274
Other Expense	Allowance for lease receivable (5)	$	—	$	—	$	20	$	—
	Loss on sale and disposal of assets	—		6		9		13
	Loss on commencement of sales-type leases (6)	—		—		—		13
	Legal contingencies and settlements	8		2		8		2
	Other	2		4		14		4
	Total other expense	$	10	$	12	$	51	$	32

_____________________________

(1)    Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative.

(2)    Primarily related to insurance recoveries associated with property damage at TermoAndes.

(3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information.

(4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information.

(5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

(6)     Related to a loss recognized at commencement of a sales-type lease at AES Renewable Holdings. See Note 9—Leases for further information.

29 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

15. ASSET IMPAIRMENT EXPENSE

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Maritza	$	—	$	—	$	468	$	—
Jordan	51		—		51		—
Ventanas 3 & 4	—		—		—		649
Puerto Rico	—		—		—		475
Angamos	—		—		—		155
Mountain View I & II	—		—		—		67
Estrella del Mar I	—		11		—		11
Other	(1)		18		14		17
Total	$	50	$	29	$	533	$	1,374

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million and as of September 30, 2022, the generation plants were classified as held-for-sale. Due to the delay in closing the transaction, the carrying amount of the asset group in subsequent periods exceeded the agreed-upon sales price and an impairment of $51 million was recorded as of September 30, 2022. See Note 17—Held-for-Sale and Dispositions for further information. Jordan is reported in the Eurasia SBU reportable segment.

Maritza — In May 2022, the Council for the European Union approved Bulgaria’s National Recovery and Resilience plan which commits the country to cease generating electricity from coal beyond 2038. As this plan is expected to prohibit the Company from operating the Maritza coal-fired plant through its estimated useful life, it was determined that an indicator of impairment had occurred. The Company reassessed the useful life of the facility and performed an impairment analysis as of April 30, 2022, in which it was determined that the carrying amount of the asset group was not recoverable. The Maritza asset group was determined to have a fair value of $452 million using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $468 million. Maritza is reported in the Eurasia SBU reportable segment.

Ventanas and Angamos — In July 2021, AES Andes entered into an agreement committing to accelerate the retirement of the Ventanas 3, Ventanas 4, Angamos 1, and Angamos 2 coal-fired plants in Chile in order to further advance its decarbonization strategy. Due to these strategic developments, the Company performed impairment analyses as of June 30, 2021, and determined that the carrying amounts of the asset groups were not recoverable. The Ventanas 3 & 4 and Angamos asset groups were determined to have fair values of $12 million and $86 million, respectively, using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $649 million and $155 million, respectively. Ventanas and Angamos are reported in the South America SBU reportable segment.

Mountain View I & II — In April 2021, the Company approved plans to execute a repowering project for the Mountain View I & II wind facility and signed two new PPAs for the energy and capacity related to the repowered asset. As the repowering will result in decommissioning the majority of the existing wind turbines in advance of their depreciable lives, the execution of the new PPAs was identified as an impairment indicator. The asset group was determined to have a fair value of $11 million using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $67 million. Mountain View I & II is reported in the US and Utilities SBU reportable segment.

Puerto Rico — New factors arose in the first quarter of 2021 associated with the economic costs and operational and reputational risks of disposal of coal combustion residuals off island. In addition, new legislative initiatives surrounding the prohibition of coal generation assets in Puerto Rico were introduced. Collectively, these factors along with management’s decision on how to best achieve our stated decarbonization goals resulted in an indicator of impairment at our asset group in Puerto Rico. As such, management performed a recoverability test in accordance with ASC 360 and concluded that Puerto Rico’s undiscounted cash flows did not exceed the carrying value of the asset group. The fair value of the asset group was determined to be $73 million, resulting in pre-tax impairment expense of $475 million. Puerto Rico is reported in the US and Utilities SBU reportable segment.

Estrella del Mar I — In August 2020, the Estrella del Mar I power barge was disconnected from the Panama grid. Upon disconnection, the Company concluded that the barge was no longer part of the AES Panama asset group and performed an impairment analysis. The Company determined that the carrying amount of the asset was not recoverable and recognized asset impairment expense of $30 million. In September 2021, the Company recognized additional asset impairment expense of $11 million due to a change in the estimated market value of the power barge. Prior to its sale in October 2021, Estrella del Mar I was reported in the MCAC SBU reportable segment.

30 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

16. INCOME TAXES

The Company’s provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rates for the three and nine months ended September 30, 2022 were 24% and 26%, respectively. The effective tax rates for the three and nine months ended September 30, 2021 were 22% and 16%, respectively. The difference between the Company’s effective tax rates for the 2022 and 2021 periods and the U.S. statutory tax rate of 21% related primarily to U.S. taxes on foreign earnings, foreign tax rate differentials, the impacts of foreign currency fluctuations at certain foreign subsidiaries, nondeductible expenses, and valuation allowance.

For the nine months ended September 30, 2022, the Company recorded discrete tax benefit of approximately $19 million resulting from foreign currency fluctuations at certain Argentine businesses.

For the three and nine months ended September 30, 2021, the Company recorded discrete tax benefit of approximately $96 million ($44 million net of NCI) associated with the release of valuation allowance at one of our Brazilian subsidiaries.

17. HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

Mong Duong — In December 2020, the Company entered into an agreement to sell its entire 51% ownership interest in Mong Duong, a coal-fired plant in Vietnam, and 51% equity interest in Mong Duong Finance Holdings B.V, an SPV accounted for as an equity affiliate. The sale is subject to regulatory approval and is expected to close in the second half of 2023. As of September 30, 2022, the Mong Duong plant and SPV were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plant and SPV held-for-sale as of September 30, 2022 was $570 million. Mong Duong is reported in the Eurasia SBU reportable segment.

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million. The closing of the transaction was delayed by an extended lender approval process triggered by a restructuring in the buyer’s group. The Company and the buyer continue to work closely with the lenders to achieve closing in the second half of 2022. After completion of the sale, the Company will retain a 10% ownership interest in Amman East and IPP4, which will be accounted for as an equity method investment. As of September 30, 2022, the generation plants were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plants held-for-sale as of September 30, 2022 was $174 million. Jordan is reported in the Eurasia SBU reportable segment.

Excluding any impairment charges, pre-tax income (loss) attributable to AES of businesses held-for-sale as of September 30, 2022 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Mong Duong	$	11	$	12	$	52	$	42
Jordan	(13)		5		(2)		15
Total	$	(2)	$	17	$	50	$	57

Dispositions

AES Tietê Inova Soluções — In June 2021, the Company completed the sale of its ownership in AES Inova Soluções, an investment platform in distributed solar generation, for $20 million, resulting in a pre-tax loss on sale of $1 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, AES Tietê Inova Soluções was reported in the South America SBU reportable segment.

Itabo — In April 2021, the Company completed the sale of its 43% ownership interest in Itabo, a coal-fired plant and gas turbine in Dominican Republic, for $88 million, resulting in a pre-tax gain on sale of $4 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Itabo was reported in the MCAC SBU reportable segment.

18. ACQUISITIONS

31 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

Agua Clara — On June 17, 2022, the Company, through its subsidiaries AES Dominicana Renewable Energy and AES Andres DR, S.A., acquired 100% of the equity interests in Agua Clara, S.A.S., a wind project, for consideration of $98 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Agua Clara is not a VIE, any difference between the fair value of the assets and consideration transferred was allocated to PP&E on a relative fair value basis. Agua Clara is reported in the MCAC SBU reportable segment.

Tunica Windpower, LLC — On June 17, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Tunica Windpower, LLC. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $22 million, including contingent consideration of $7 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Tunica Windpower is reported in the US and Utilities SBU reportable segment.

Windsor PV1, LLC — On May 27, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Windsor PV1, LLC, an early development-stage solar project. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $17 million, including contingent consideration of $5 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Windsor is reported in the US and Utilities SBU reportable segment.

Community Energy — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Community Energy, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. Community Energy is reported in the US and Utilities SBU reportable segment.

New York Wind — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Cogentrix Valcour Intermediate Holdings, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. New York Wind is reported in the US and Utilities SBU reportable segment.

Serra Verde Wind Complex — On July 19, 2021, AES Brasil completed the acquisition of the Serra Verde Wind Complex for $18 million, subject to customary working capital adjustments, of which $6 million was paid in cash and the remaining $12 million will be paid in two annual installments ending on July 19, 2023. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business; therefore, the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Serra Verde is reported in the South America SBU.

Cajuina Wind Complex — On May 21, 2021, AES Brasil completed the acquisition of the Cajuina Wind Complex phase I for $22 million, subject to customary working capital adjustments. On July 29, 2021, AES Brasil completed the acquisition of the Cajuína Wind Complex phase II for $24 million, subject to customary working capital adjustments, including $3 million of contingent consideration. The Company made initial cash payments of $6 million and the remaining balance will be paid in three annual installments ending on March 31, 2024 and on July 29, 2024, respectively. These transactions were accounted for as asset acquisitions of variable interest entities that did not meet the definition of a business; therefore the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Cajuina is reported in the South America SBU.

Cubico Wind Complex — On April 30, 2021, AES Brasil completed the acquisition of the Cubico Wind Complex for $109 million, subject to customary working capital adjustments. The transaction was accounted for as an asset acquisition; therefore the consideration transferred, plus transaction costs, were allocated to the individual assets acquired and liabilities assumed based on their relative fair values. Cubico is reported in the South America SBU.

AES Clean Energy Development — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, which will serve as the development vehicle for all future renewable projects in the U.S. As part of the transaction, AES acquired an additional 25% ownership interest in the sPower development platform from AIMCo, our existing partner in the sPower equity method investment, in exchange for a 25% ownership interest in specifically identified development entities of AES Renewable Holdings, certain future exit rights in the new partnership, and $7 million of cash.

32 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

The sPower development platform was carved-out of AES’ existing equity method investment. AES’ basis in the portion of assets transferred was $102 million, and the contribution to AES Clean Energy Development resulted in a corresponding decrease in the carrying value of the sPower investment. See Note 6—Investments in and Advances to Affiliates for further information.

During the first quarter of 2021, the sPower development assets transferred were remeasured at their acquisition-date preliminary fair values, resulting in the recognition of a $36 million gain, recorded in Other income on the Condensed Consolidated Statement of Operations. The Company recorded $81 million in Goodwill as of the acquisition date, representing the difference between the fair value of the consideration transferred, the noncontrolling interest in the sPower development platform, and the acquisition-date fair value of the Company’s previously held equity interest and the fair value of the identifiable assets acquired and liabilities assumed.

During the second quarter of 2021, the Company recorded measurement period adjustments as result of additional facts and circumstances that existed as of the date of the acquisition but were not yet known as of the time of the valuation performed in the first quarter of 2021. These measurement period adjustments primarily related to higher expected developer profits and a higher growth rate, reflective of additional information that became available regarding market participants’ views of the value of early-stage renewable development projects as of the date of acquisition. As a result, the estimated acquisition-date carrying value and fair values of the sPower development assets transferred were increased, which resulted in the recognition of an additional $178 million gain, for an updated gain of $214 million. Furthermore, the estimated goodwill as of the acquisition date was reduced to the estimated goodwill as of the acquisition date was reduced to $45 million, as a result of adjustments to the fair value of the consideration paid and updates to the fair values of separately identifiable intangible assets. The Company finalized the purchase price allocation in the third quarter of 2021, which did not result in any material measurement period adjustments.

Subsequent to the closing of the transaction, AES holds a 75% ownership interest in AES Clean Energy Development. AIMCo holds the remaining 25% minority interest along with certain partnership rights, though currently not in effect, that would enable AIMCo to exit in the future. AIMCo’s minority interest is recorded as temporary equity in Redeemable stock of subsidiaries on the Condensed Consolidated Balance Sheet. See Note 10—Redeemable Stock of Subsidiaries for further information. AES Clean Energy Development is reported in the US and Utilities SBU reportable segment.

Great Cove Solar— On January 25, 2021, and May 3, 2021, AES Clean Energy Development completed the acquisitions of Great Cove I and II, respectively. The fair value of the initial consideration paid to acquire Great Cove I and Great Cove II was $13 million and $24 million, which included contingent consideration liabilities of $6 million and $22 million, respectively. These acquisitions were accounted for as asset acquisitions of variable interest entities that did not meet the definition of a business; therefore, the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Great Cove Solar is reported in the US and Utilities SBU reportable segment.

19. EARNINGS PER SHARE

Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and nine months ended September 30, 2022 and 2021, where income represents the numerator and weighted average shares represent the denominator.

33 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

Three Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	421	668	$	0.63	$	343	667	$	0.52
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		2	(0.01)
Equity units	—		40	(0.04)		1		41	(0.03)
DILUTED EARNINGS PER SHARE	$	421	711	$	0.59	$	344	711	$	0.48
Nine Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	357	668	$	0.53	$	219	666	$	0.32
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		3	—
Equity units	1		40	(0.03)		1		31	(0.01)
DILUTED EARNINGS PER SHARE	$	358	711	$	0.50	$	220	701	$	0.31

The calculation of diluted earnings per share excluded 2 million outstanding stock awards for the three and nine months ended September 30, 2022 and 1 million for the three and nine months ended September 30, 2021, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future. Due to the full retrospective adoption of ASU 2020-06, an additional 1 million potential shares of common stock related to the assumed share settlement of the Contract Adjustment Payments were included in diluted weighted-average shares outstanding for the three and nine months ended September 30, 2021.

As described in Note 11—Equity, the Company issued 10,430,500 Equity Units in March 2021 with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a 2024 Purchase Contract and a 10% undivided beneficial ownership interest in one share of Series A Preferred Stock. Prior to February 15, 2024, the Series A Preferred Stock may be converted at the option of the holder only in connection with a fundamental change. On and after February 15, 2024, the Series A Preferred Stock may be converted freely at the option of the holder. Upon conversion, the Company will deliver to the holder with respect to each share of Series A Preferred Stock being converted (i) a share of our Series B Preferred Stock, or, solely with respect to conversions in connection with a redemption, cash and (ii) shares of our common stock, if any, in respect of any conversion value in excess of the liquidation preference of the preferred stock being converted. The conversion rate was initially 31.5428 shares of common stock per one share of Series A Preferred Stock, which was equivalent to an initial conversion price of approximately $31.70 per share of common stock. As of September 30, 2022, due to customary anti-dilution provisions, the conversion rate was 31.5756, equivalent to a conversion price of approximately $31.67 per share of common stock. The Series A Preferred Stock and the 2024 Purchase Contracts are being accounted for as one unit of account. In calculating diluted EPS, the Company has applied the if-converted method to determine the impact of the forward purchase feature and considered if there are incremental shares that should be included related to the Series A Preferred conversion value.

20. RISKS AND UNCERTAINTIES

COVID-19 Pandemic — The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition, and cash flows in future periods.

Goodwill — The Company considers a reporting unit at risk of impairment when its fair value does not exceed its carrying amount by more than 10%. During the annual goodwill impairment test performed as of October 1, 2021, the Company had no reporting units considered to be “at risk,” as the fair value of all reporting units exceeded their carrying amounts by more than 10%. The Company monitors its reporting units for interim impairment indicators, and has determined that no triggering events requiring a reassessment of goodwill impairment exist as of September 30, 2022.

However, the Company has seen degradation in certain inputs to the discount rate used in our goodwill impairment analysis, such as increasing interest rates and country risk premiums in certain markets, since the date

34 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

of our last impairment test. These changes to the inputs of our discount rate may negatively impact our annual goodwill impairment test as of October 1, 2022. The analysis of the cash flows to which these inputs are applied is currently in process. It is currently not known if these inputs to the discount rate are significant enough to result in an impairment of goodwill.

Should the fair value of any of the Company’s reporting units fall below its carrying amount as a result of these inputs or other changes such as reduced operating performance, market declines, changes in the discount rate, regulatory changes, or other adverse conditions, goodwill impairment charges may be necessary in future periods.

Alto Maipo — On August 27, 2021, Alto Maipo updated its creditors with respect to the construction budget and long-term business plan for the project, which considers different scenarios for spot prices, decarbonization initiatives, and hydrological conditions, among other significant variables. Under some of these scenarios, Alto Maipo may experience reduced future cash flows, which would limit its ability to repay debt. Alto Maipo’s management initiated negotiations with its creditors to restructure its obligations and achieve a sustainable long-term capital structure for Alto Maipo. On November 17, 2021, Alto Maipo SpA commenced a reorganization proceeding in accordance with Chapter 11 of the U.S. Bankruptcy Code, through a voluntary petition. Consequently, after the Chapter 11 filing, the Company is no longer considered to have control over Alto Maipo, which resulted in its deconsolidation. The Company recognized an after-tax loss of approximately $1.2 billion, net of noncontrolling interests, in the Consolidated Statement of Operations in the fourth quarter of 2021, associated with the loss of control attributable to the former controlling interest.

On May 26, 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore will not consolidate this entity. The Company has elected the fair value option to account for its investment in Alto Maipo. If Alto Maipo is unable to meet its obligations under the restructured arrangements as they come due, the creditors may enforce their rights under the credit agreements. These finance agreements are non-recourse with respect to The AES Corporation.

21. SUBSEQUENT EVENTS

Southland Energy — On November 3, 2022, the Company signed an agreement to sell an additional 14.9% of its ownership interest in the Southland repowering assets (“Southland Energy”). Once this sale is completed, AES will hold 50.1% of Southland Energy’s interest. The transaction is expected to close during the fourth quarter of 2022 and is expected to be accounted for as an equity transaction, with no gain or loss recognized in the financial statements. Southland Energy is expected to continue being consolidated by the Company within the US and Utilities SBU reportable segment.

35 | The AES Corporation | September 30, 2022 Form 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The condensed consolidated financial statements included in Item 1.—Financial Statements of this Form 10-Q and the discussions contained herein should be read in conjunction with our 2021 Form 10-K.

Forward-Looking Information

The following discussion may contain forward-looking statements regarding us, our business, prospects and our results of operations, including our expectations regarding the impact of the COVID-19 pandemic on our business, that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. These statements include, but are not limited to, statements regarding management’s intents, beliefs, and current expectations and typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “forecast,” “target,” “will,” “would,” “intend,” “believe,” “project,” “estimate,” “plan,” and similar words. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute current expectations based on reasonable assumptions. Factors that could cause or contribute to such differences include, but are not limited to, those described in Item 1A.—Risk Factors of this Form 10-Q, Item 1A.—Risk Factors and Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2021 Form 10-K and subsequent filings with the SEC.

Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise of the risks and factors that may affect our business.

Overview of Our Business

We are a diversified power generation and utility company organized into the following four market-oriented SBUs: US and Utilities (United States, Puerto Rico and El Salvador); South America (Chile, Colombia, Argentina and Brazil); MCAC (Mexico, Central America and the Caribbean); and Eurasia (Europe and Asia). For additional information regarding our business, see Item 1.—Business of our 2021 Form 10-K.

We have two lines of business: generation and utilities. Each of our SBUs participates in our first business line, generation, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our US and Utilities SBU participates in our second business line, utilities, in which we own and/or operate utilities to generate or purchase, distribute, transmit and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market.

Executive Summary

Compared with last year, third quarter diluted earnings per share from continuing operations increased $0.11, from $0.48 to $0.59. This increase is mainly driven by higher margins from our MCAC SBU due to favorable LNG transactions, partially offset by lower margins from our US and Utilities SBU primarily due to unrealized derivative losses and the recognition of previously deferred power purchase costs.

Adjusted EPS, a non-GAAP measure, increased $0.13 to $0.63, mainly driven by higher contributions from our MCAC SBU, partially offset by lower contributions from our US and Utilities SBU and a higher adjusted tax rate.

Compared with last year, diluted earnings per share from continuing operations for the nine months ended September 30, 2022 increased $0.19, from $0.31 to $0.50. This increase is mainly driven by lower impairments in the current year and higher margins from our MCAC SBU due to favorable LNG transactions, partially offset by the prior year gains on remeasurement of our interest in sPower’s development platform and on the issuance of new shares by Fluence, which was accounted for as a partial disposition, prior year net gains from early contract terminations at Angamos, lower capitalized interest at construction projects, and higher income tax expense.

Adjusted EPS, a non-GAAP measure, increased $0.11 to $1.18, mainly driven by higher contributions from our MCAC SBU due to favorable LNG transactions and from our South America SBU due to increased ownership in AES Andes, partially offset by lower contributions from our US and Utilities SBU due to the recognition of previously deferred power purchase costs and impacts of outages, and the prior year impact of realized gains on de-

36 | The AES Corporation | September 30, 2022 Form 10-Q

designated interest rate swaps at the Parent Company.

37 | The AES Corporation | September 30, 2022 Form 10-Q

(1) See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis—Non-GAAP Measures for reconciliation and definition.

(2) GWh sold in 2021.

38 | The AES Corporation | September 30, 2022 Form 10-Q

Overview of Strategic Performance

AES is leading the industry's transition to clean energy by investing in clean power growth and innovative technology businesses. The Company is well-positioned to benefit from very favorable trends in clean power generation, distribution, and supporting technologies.

•In year-to-date 2022, the Company signed 3,178 MW of renewables and energy storage under long-term PPAs, including 1,625 MW of solar, energy storage, and wind in the U.S.

◦Since August 4, 2022, the Company signed 1,561 MW of renewables and energy storage under long-term PPAs.

•In year-to-date 2022, the Company completed the construction or acquisition of 861 MW of energy storage, wind, and solar projects in the U.S., Chile, and the Dominican Republic.

•The Company’s backlog, which includes projects with signed contracts, but which are not yet operational, is now 11,230 MW, including 5,188 MW under construction.

•The Company signed agreements that will redirect excess LNG from the Company's business in Panama to international customers.

•AES Ohio filed a new Electric Security Plan (ESP 4) to provide a regulatory foundation to upgrade and modernize its network and settle any outstanding regulatory proceedings.

39 | The AES Corporation | September 30, 2022 Form 10-Q

Review of Consolidated Results of Operations (Unaudited)

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions, except per share amounts)	2022		2021		$ change		% change		2022		2021		$ change		% change
Revenue:
US and Utilities SBU	$	1,506	$	1,327	$	179	13	%	$	3,820	$	3,248	$	572	18	%
South America SBU	926		896		30		3	%	2,616		2,744		(128)		-5	%
MCAC SBU	940		559		381		68	%	2,192		1,584		608		38	%
Eurasia SBU	261		257		4		2	%	947		804		143		18	%
Corporate and Other	24		21		3		14	%	83		82		1		1	%
Eliminations	(30)		(24)		(6)		-25	%	(101)		(91)		(10)		-11	%
Total Revenue	3,627		3,036		591		19	%	9,557		8,371		1,186		14	%
Operating Margin:
US and Utilities SBU	227		349		(122)		-35	%	481		621		(140)		-23	%
South America SBU	180		199		(19)		-10	%	576		896		(320)		-36	%
MCAC SBU	393		138		255		NM		625		381		244		64	%
Eurasia SBU	54		46		8		17	%	196		158		38		24	%
Corporate and Other	53		31		22		71	%	138		107		31		29	%
Eliminations	(15)		(3)		(12)		NM		(31)		(11)		(20)		NM
Total Operating Margin	892		760		132		17	%	1,985		2,152		(167)		-8	%
General and administrative expenses	(51)		(39)		(12)		31	%	(149)		(130)		(19)		15	%
Interest expense	(276)		(242)		(34)		14	%	(813)		(669)		(144)		22	%
Interest income	100		71		29		41	%	270		212		58		27	%
Loss on extinguishment of debt	(1)		(22)		21		-95	%	(8)		(41)		33		-80	%
Other expense	(10)		(12)		2		-17	%	(51)		(32)		(19)		59	%
Other income	4		48		(44)		-92	%	80		274		(194)		-71	%
Gain on disposal and sale of business interests	1		22		(21)		-95	%	—		81		(81)		-100	%
Asset impairment expense	(50)		(29)		(21)		72	%	(533)		(1,374)		841		-61	%
Foreign currency transaction gains (losses)	8		29		(21)		-72	%	(60)		(8)		(52)		NM
Income tax expense	(145)		(126)		(19)		15	%	(186)		(75)		(111)		NM
Net equity in earnings (losses) of affiliates	(26)		25		(51)		NM		(54)		(15)		(39)		NM
INCOME FROM CONTINUING OPERATIONS	446		485		(39)		-8	%	481		375		106		28	%
Gain from disposal of discontinued businesses	—		—		—		—	%	—		4		(4)		-100	%
NET INCOME	446		485		(39)		-8	%	481		379		102		27	%
Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	(25)		(142)		117		-82	%	(124)		(156)		32		-21	%
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$	421	$	343	$	78	23	%	$	357	$	223	$	134	60	%
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
Income from continuing operations, net of tax	$	421	$	343	$	78	23	%	$	357	$	219	$	138	63	%
Income from discontinued operations, net of tax	—		—		—		—	%	—		4		(4)		-100	%
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$	421	$	343	$	78	23	%	$	357	$	223	$	134	60	%
Net cash provided by operating activities	$	784	$	775	$	9	1	%	$	1,649	$	1,379	$	270	20	%

Components of Revenue, Cost of Sales, and Operating Margin — Revenue includes revenue earned from the sale of energy from our utilities and the production and sale of energy from our generation plants, which are classified as regulated and non-regulated, respectively, on the Condensed Consolidated Statements of Operations. Revenue also includes the gains or losses on derivatives associated with the sale of electricity.

Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples include electricity and fuel purchases, operations and maintenance costs, depreciation and amortization expenses, bad debt expense and recoveries, and general administrative and support costs (including employee-related costs directly associated with the operations of the business). Cost of sales also includes the gains or losses on derivatives (including embedded derivatives other than foreign currency embedded derivatives) associated with the purchase of electricity or fuel.

Operating margin is defined as revenue less cost of sales.

40 | The AES Corporation | September 30, 2022 Form 10-Q

Consolidated Revenue and Operating Margin

Three Months Ended September 30, 2022

Revenue

(in millions)

Consolidated Revenue — Revenue increased $591 million, or 19%, for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, driven by:

•$381 million in MCAC driven by favorable LNG transactions in Panama and the Dominican Republic; higher pass-through fuel costs in Mexico; and higher contract sales in Panama;

•$179 million in US and Utilities mainly driven by higher prices at AES Indiana and AES Ohio due to increases in riders to collect fuel and purchased power costs from customers; higher sales at AES Clean Energy due to the prior year acquisition of New York Wind and the commencement of renewables projects; higher spot sales at Southland; and higher pass-through energy prices in El Salvador; partially offset by an increase in unrealized derivative losses at Southland; and

•$30 million in South America primarily driven by higher prices (Resolution 238/2022) in Argentina; higher energy prices in Chile; higher volume at AES Brasil due to improved hydrology; and higher spot sales in Colombia due to higher energy prices; partially offset by revenue recognized at Angamos in the prior year for the early termination of contracts with Minera Escondida and Minera Spence; and by unfavorable FX impact.

Operating Margin

(in millions)

Consolidated Operating Margin — Operating margin increased $132 million, or 17%, for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, driven by:

•$255 million in MCAC primarily driven by favorable LNG transactions in Panama and the Dominican Republic; and higher contract sales due to higher prices and favorable hydrology in Panama; partially offset by higher fixed costs in the Dominican Republic.

This favorable impact was partially offset by a decrease of:

•$122 million in US and Utilities mainly driven by an increase in unrealized derivative losses at Southland and Southland Energy; recognition of previously deferred purchased power costs at DPL and a charge resulting from a regulatory settlement at AES Indiana; and lower availability and higher maintenance costs at AES Puerto Rico due to forced outages; partially offset by lower maintenance expenses at AES Indiana

41 | The AES Corporation | September 30, 2022 Form 10-Q

due to the timing of planned outages; and by an increase in capacity sales at Southland; and

•$19 million in South America primarily driven by revenue recognized at Angamos in the prior year for the early termination of contracts with Minera Escondida and Minera Spence; and an increase in regulatory receivables credit losses allowance in Argentina; partially offset by lower spot purchases and higher contract sales at AES Brasil due to improved hydrology; lower spot purchases in Chile; and higher availability at TermoAndes.

Nine Months Ended September 30, 2022

Revenue

(in millions)

Consolidated Revenue — Revenue increased $1.2 billion, or 14%, for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, driven by:

•$608 million in MCAC driven by favorable LNG transactions in Panama and the Dominican Republic; higher contract sales due to higher prices, and higher spot sales due to improved hydrology in Panama; and higher pass-through fuel costs in Mexico; partially offset by the impact from the sale of Itabo in April 2021;

•$572 million in US and Utilities mainly driven by higher prices at AES Indiana and AES Ohio due to increases in riders to collect fuel and purchased power costs from customers, as well as increased demand and favorable weather; higher pass-through energy prices in El Salvador; higher spot sales at Southland; and higher sales at AES Clean Energy due to the supply agreement with Google, the prior year acquisition of New York Wind, and the commencement of renewables projects; partially offset by an increase in unrealized derivative losses at Southland; and lower generation at AES Puerto Rico; and

•$143 million in Eurasia mainly driven by higher energy prices and generation in Bulgaria and recognition of construction revenue at Mong Duong due to a reduction in expected completion costs for ash pond 2; partially offset by unfavorable FX impact and by lower contract sales at Mong Duong due to a forced outage.

These favorable impacts were partially offset by a decrease of $128 million in South America primarily driven by revenue recognized at Angamos in the prior year for the early termination of contracts with Minera Escondida and Minera Spence; and by unfavorable FX impact; partially offset by higher generation and prices (Resolution 238/2022) in Argentina; higher energy prices in Chile and Colombia; and higher volume and generation at AES Brasil.

42 | The AES Corporation | September 30, 2022 Form 10-Q

Operating Margin

(in millions)

Consolidated Operating Margin — Operating margin decreased $167 million, or 8%, for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, driven by:

•$320 million in South America primarily driven by revenue recognized at Angamos in the prior year for the early termination of contracts with Minera Escondida and Minera Spence; higher spot purchases and higher fixed costs at AES Brasil; an increase in regulatory receivables credit losses allowance in Argentina; lower contract sales and higher fixed costs in Chile; and unfavorable FX impact; partially offset by higher generation, lower spot purchases, and lower depreciation of coal assets in Chile; higher contract sales at AES Brasil due to improved hydrology; higher energy prices in Colombia; and higher availability at TermoAndes; and

•$140 million in US and Utilities mainly driven by an increase in unrealized derivative losses at Southland and Southland Energy; recognition of previously deferred purchased power costs at DPL and a charge resulting from a regulatory settlement at AES Indiana; lower availability and higher maintenance costs at AES Puerto Rico due to forced outages; an increase in costs associated with growing the business at AES Clean Energy; and impact from outages at AES Indiana, AES Hawaii, and Southland Energy; partially offset by an increase at Southland due to increased capacity sales and spot sales; higher volume at AES Indiana due to increased demand and favorable weather; and higher sales at AES Clean Energy due to the supply agreement with Google, the prior year acquisition of New York Wind, and the commencement of renewables projects.

These unfavorable impacts were partially offset by an increase of:

•$244 million in MCAC primarily driven by an increase in Panama and the Dominican Republic due to favorable LNG transactions; higher contract sales due to higher prices and favorable hydrology in Panama; partially offset by higher fixed costs in the Dominican Republic; and by the impact from the sale of Itabo in April 2021; and

•$38 million in Eurasia primarily driven by recognition of construction revenue at Mong Duong due to a reduction in expected completion costs for ash pond 2; and by higher electricity prices at Kavarna in Bulgaria; partially offset by unfavorable FX impact.

See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis of this Form 10-Q for additional discussion and analysis of operating results for each SBU.

Consolidated Results of Operations — Other

General and administrative expenses

General and administrative expenses increased $12 million, or 31%, to $51 million for the three months ended September 30, 2022, compared to $39 million for the three months ended September 30, 2021, primarily due to increased business development activity.

General and administrative expenses increased $19 million, or 15%, to $149 million for the nine months ended September 30, 2022, compared to $130 million for the nine months ended September 30, 2021, primarily due to increased business development activity and people costs.

Interest expense

Interest expense increased $34 million, or 14%, to $276 million for the three months ended September 30,

43 | The AES Corporation | September 30, 2022 Form 10-Q

2022, compared to $242 million for the three months ended September 30, 2021. This increase is primarily due to lower capitalized interest at construction projects in Chile, increased borrowings in South America, and higher average debt balances and interest rates at the Parent Company.

Interest expense increased $144 million, or 22%, to $813 million for the nine months ended September 30, 2022, compared to $669 million for the nine months ended September 30, 2021. This increase is primarily due to the prior year impact of realized gains on de-designated interest rate swaps, lower capitalized interest at construction projects in Chile, and increased borrowings in South America and the Parent Company.

Interest income

Interest income increased $29 million, or 41%, to $100 million for the three months ended September 30, 2022, compared to $71 million for the three months ended September 30, 2021, primarily due to an increase in short-term investments at AES Brasil.

Interest income increased $58 million, or 27%, to $270 million for the nine months ended September 30, 2022, compared to $212 million for the nine months ended September 30, 2021, primarily due to an increase in short-term investments at AES Brasil and sales-type lease receivables at the Alamitos Energy Center, and higher CAMMESA interest rates on receivables in Argentina.

Loss on extinguishment of debt

Loss on extinguishment of debt decreased $21 million, or 95%, to $1 million for the three months ended September 30, 2022, compared to $22 million for the three months ended September 30, 2021, primarily due to the prior year loss at AES Andes of $14 million resulting from the refinancing of senior notes in July 2021.

Loss on extinguishment of debt decreased $33 million, or 80%, to $8 million for the nine months ended September 30, 2022, compared to $41 million for the nine months ended September 30, 2021, primarily due to the driver noted above as well as the prior year loss at Andres due to the refinancing in May 2021.

See Note 7—Debt included in Item 1.—Financial Statements of this Form 10-Q for further information.

Other income and expense

Other income decreased $44 million, or 92%, to $4 million for the three months ended September 30, 2022, compared to $48 million for the three months ended September 30, 2021, primarily due to the prior year gain on remeasurement of contingent consideration at AES Clean Energy and the prior year gain on remeasurement of our equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value.

Other income decreased $194 million, or 71%, to $80 million for the nine months ended September 30, 2022, compared to $274 million for the nine months ended September 30, 2021, primarily due to the prior year gain on remeasurement of our equity interest in the sPower development platform to its acquisition-date fair value, recognized as part of the merger to form AES Clean Energy Development, and the prior year gain on remeasurement of contingent consideration at AES Clean Energy; partially offset by the current year gain on remeasurement of our existing investment in 5B, which is accounted for using the measurement alternative, and insurance proceeds primarily associated with property damage at TermoAndes.

Other expense decreased $2 million, or 17%, to $10 million for the three months ended September 30, 2022, compared to $12 million for the three months ended September 30, 2021, with no material drivers.

Other expense increased $19 million, or 59%, to $51 million for the nine months ended September 30, 2022, compared to $32 million for the nine months ended September 30, 2021, primarily due to the recognition of an allowance on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

See Note 14—Other Income and Expense, Note 6—Investments in and Advances to Affiliates, and Note 18—Acquisitions included in Item 1.—Financial Statements of this Form 10-Q for further information.

Gain on disposal and sale of business interests

Gain on disposal and sale of business interests was $1 million for the three months ended September 30, 2022 and zero for the nine months ended September 30, 2022, with no material drivers.

Gain on disposal and sale of business interests was $22 million for the three months ended September 30, 2021 primarily due to the gain on sale of Guacolda, partially offset by the loss on the partial disposition of the Company’s investment in Uplight and $81 million for the nine months ended September 30, 2021, primarily due to the issuance of new shares by Fluence, our equity method investment, to a new investor, which AES accounted for

44 | The AES Corporation | September 30, 2022 Form 10-Q

as a gain on the partial disposition of its investment in Fluence, and the gain on sale of Guacolda, partially offset by the loss on the partial disposition of the Company’s investment in Uplight.

Asset impairment expense

Asset impairment expense increased $21 million, or 72%, to $50 million for the three months ended September 30, 2022, compared to $29 million for the three months ended September 30, 2021. This increase was primarily due to the $51 million impairment of Amman East and IPP4 in Jordan, partially offset by the $11 million prior year impairment of the Estrella del Mar I power barge and higher impairments of development projects no longer pursued in the prior year.

Asset impairment expense decreased $841 million, or 61%, to $533 million for the nine months ended September 30, 2022, compared to $1.4 billion for the nine months ended September 30, 2021. This decrease was primarily due to two prior year impairments at AES Andes totaling $804 million associated with a commitment to accelerate the retirement of certain coal-fired plants in Chile, a $475 million impairment at Puerto Rico associated with the economic costs and reputational risks of disposal of coal combustion residuals off island, and a $67 million impairment at the Mountain View I & II wind facilities related to a repowering project that will result in decommissioning the majority of the existing wind turbines in advance of their depreciable lives. This was partially offset by the $468 million current year impairment at Maritza due to Bulgaria’s commitment to cease electricity generation using coal as a fuel source beyond 2038 and the $51 million impairment of Amman East and IPP4 in Jordan.

See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information.

Foreign currency transaction gains (losses)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Argentina	$	(7)	$	18	$	(62)	$	(22)
Chile	11		6		—		16
Other	4		5		2		(2)
Total (1)	$	8	$	29	$	(60)	$	(8)

___________________________________________

(1)Includes gains of $33 million and $53 million on foreign currency derivative contracts for the three months ended September 30, 2022 and 2021, respectively, and losses of $16 million and gains of $8 million on foreign currency derivative contracts for the nine months ended September 30, 2022 and 2021, respectively.

The Company recognized net foreign currency transaction gains of $8 million for the three months ended September 30, 2022, primarily due to unrealized and realized derivative gains on foreign currency derivatives in South America due to the depreciating Colombian peso, partially offset by realized and unrealized losses due to the depreciating Argentine peso.

The Company recognized net foreign currency transaction losses of $60 million for the nine months ended September 30, 2022, primarily due to the depreciating Argentine peso.

The Company recognized net foreign currency transaction gains of $29 million for the three months ended September 30, 2021, primarily due to unrealized gains on foreign currency derivatives related to government receivables in Argentina.

The Company recognized net foreign currency transaction losses of $8 million for the nine months ended September 30, 2021, primarily due to unrealized losses on foreign currency derivatives related to government receivables in Argentina, partially offset by unrealized derivative gains on foreign currency derivatives in South America due to the depreciating Colombian peso.

45 | The AES Corporation | September 30, 2022 Form 10-Q

Income tax expense

Income tax expense increased $19 million, or 15%, to $145 million for the three months ended September 30, 2022, compared to $126 million for the three months ended September 30, 2021. The Company’s effective tax rates were 24% and 22% for the three months ended September 30, 2022, and 2021, respectively. This net increase in the effective tax rate was primarily due to the 2021 benefit associated with the release of valuation allowance due to a change in expected realizability of net operating loss carryforwards at one of our Brazilian subsidiaries. The current quarter effective tax rate was benefited by the impact of inflationary and foreign currency impacts at certain Argentine businesses.

Income tax expense increased by $111 million to $186 million for the nine months ended September 30, 2022, compared to $75 million for the nine months ended September 30, 2021. The Company’s effective tax rates were 26% and 16% for the nine months ended September 30, 2022, and 2021, respectively. This net increase in the effective tax rate was primarily due to the aforementioned prior year valuation allowance release benefit. The current year effective tax rate was impacted by favorable LNG transactions at certain MCAC businesses, inflationary and foreign currency impacts at certain Argentine businesses, offset by the impact of the asset impairment of the Maritza coal-fired plant. The prior year effective tax rate was also impacted by the asset impairments at Chile and Puerto Rico.

See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for details of the Maritza, Chile, and Puerto Rico asset impairments.

Our effective tax rate reflects the tax effect of significant operations outside the U.S., which are generally taxed at rates different than the U.S. statutory rate of 21%. Furthermore, our foreign earnings may be subjected to incremental U.S. taxation under the GILTI rules. A future proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions could impact our periodic effective tax rate.

Net equity in earnings (losses) of affiliates

Net equity in losses of affiliates increased $51 million, to $26 million for the three months ended September 30, 2022, compared to earnings of $25 million for the three months ended September 30, 2021. This increase was primarily due to a lower allocation of earnings and higher interest expense at sPower, as well as the impact of the three-month lag in accounting for the investment in Fluence, which began July 1, 2021.

Net equity in losses of affiliates increased $39 million to $54 million for the nine months ended September 30, 2022, compared to $15 million for the nine months ended September 30, 2021. This increase was primarily driven by an increase in losses at Fluence due to shipping issues, cost overruns and delays at projects under construction, and an increase in costs, including share-based compensation, associated with the growing business, as well as the impact of the three-month lag in accounting for the investment in Fluence, which began July 1, 2021.

See Note 6—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for further information.

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $117 million, or 82%, to $25 million for the three months ended September 30, 2022, compared to $142 million for the three months ended September 30, 2021. This decrease was primarily due to:

•Higher allocation of losses to tax equity partners at AES Clean Energy Development;

•Prior year deferred tax benefits recorded at AES Brasil; and

•Current year asset impairment at Jordan.

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $32 million, or 21%, to $124 million for the nine months ended September 30, 2022, compared to $156 million for the nine months ended September 30, 2021. This decrease was primarily due to:

•Higher allocation of losses to tax equity partners and increased costs associated with growing the business at AES Clean Energy Development;

•Prior year net gains from early contract terminations at Angamos;

•Prior year deferred tax benefits recorded at AES Brasil; and

•Lower earnings from AES Andes due to increased ownership from 67% to 99% in the first quarter of 2022.

46 | The AES Corporation | September 30, 2022 Form 10-Q

These decreases were partially offset by:

•Prior year long-lived asset impairments in Chile; and

•Lower allocation of losses to tax equity partners at AES Renewable Holdings.

Net income attributable to The AES Corporation

Net income attributable to The AES Corporation increased $78 million, or 23%, to $421 million for the three months ended September 30, 2022, compared to $343 million for the three months ended September 30, 2021. This increase was primarily due to:

•Higher margins at our MCAC SBU due to favorable LNG transactions.

This increase was partially offset by:

•Lower margins at our US and Utilities SBU primarily due to unrealized derivative losses and the recognition of previously deferred power purchase costs;

•Prior year gain on remeasurement of contingent consideration at AES Clean Energy; and

•Lower capitalized interest at construction projects in Chile.

Net income attributable to The AES Corporation increased $134 million, or 60%, to $357 million for the nine months ended September 30, 2022, compared to $223 million for the nine months ended September 30, 2021. This increase was primarily due to:

•Lower long-lived asset impairments in the current year; and

•Higher margins at our MCAC SBU due to favorable LNG transactions.

These increases were partially offset by:

•Prior year gain on remeasurement of our equity interest in the sPower development platform to acquisition-date fair value;

•Lower margins at our US and Utilities SBU due to the recognition of previously deferred power purchase costs, impacts of outages, and unrealized derivative losses;

•Lower margins at our South America SBU primarily due to prior year net gains from early contract terminations at Angamos;

•Higher income tax expense;

•Prior year gain due to the issuance of new shares by Fluence, which was accounted for as a partial disposition;

•Higher Parent interest expense primarily due to the prior year realized gains on de-designated interest rate swaps; and

•Lower capitalized interest at construction projects in Chile.

SBU Performance Analysis

Non-GAAP Measures

Adjusted Operating Margin, Adjusted PTC, and Adjusted EPS are non-GAAP supplemental measures that are used by management and external users of our condensed consolidated financial statements such as investors, industry analysts, and lenders.

For the year ended December 31, 2021, the Company updated the definition of Adjusted EPS item (g) tax benefit or expense related to the enactment effects of 2017 U.S. tax law reform and related regulations and any subsequent period adjustments related to enactment effects to include the 2021 tax benefit on reversal of uncertain tax positions effectively settled upon the closure of the Company's 2017 U.S. tax return exam.

Effective January 1, 2021, the Company changed the definitions of Adjusted Operating Margin, Adjusted PTC, and Adjusted EPS to remove the adjustment for costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office consolidation. As this adjustment was specific to the major restructuring program announced by the Company in 2018, we believe removing this adjustment from our non-GAAP definitions provides simplification and clarity for our investors.

47 | The AES Corporation | September 30, 2022 Form 10-Q

Adjusted Operating Margin

We define Adjusted Operating Margin as Operating Margin, adjusted for the impact of NCI, excluding (a) unrealized gains or losses related to derivative transactions; (b) benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures; and (c) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. The allocation of HLBV earnings to noncontrolling interests is not adjusted out of Adjusted Operating Margin. See Review of Consolidated Results of Operations for the definition of Operating Margin.

The GAAP measure most comparable to Adjusted Operating Margin is Operating Margin. We believe that Adjusted Operating Margin better reflects the underlying business performance of the Company. Factors in this determination include the impact of NCI, where AES consolidates the results of a subsidiary that is not wholly owned by the Company, as well as the variability due to unrealized gains or losses related to derivative transactions and strategic decisions to dispose of or acquire business interests. Adjusted Operating Margin should not be construed as an alternative to Operating Margin, which is determined in accordance with GAAP.

	Three Months Ended September 30,				Nine Months Ended September 30,
Reconciliation of Adjusted Operating Margin (in millions)	2022		2021		2022		2021
Operating Margin	$	892	$	760	$	1,985	$	2,152
Noncontrolling interests adjustment (1)	(148)		(170)		(338)		(577)
Unrealized derivative losses (gains)	17		(26)		(17)		5
Disposition/acquisition losses	1		2		1		8
Net gains from early contract terminations at Angamos	—		(36)		—		(256)
Total Adjusted Operating Margin	$	762	$	530	$	1,631	$	1,332

_______________________

(1)The allocation of HLBV earnings to noncontrolling interests is not adjusted out of Adjusted Operating Margin.

48 | The AES Corporation | September 30, 2022 Form 10-Q

Adjusted PTC

We define Adjusted PTC as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.

Adjusted PTC reflects the impact of NCI and excludes the items specified in the definition above. In addition to the revenue and cost of sales reflected in Operating Margin, Adjusted PTC includes the other components of our income statement, such as general and administrative expenses in Corporate and Other, as well as business development costs, interest expense and interest income, other expense and other income, realized foreign currency transaction gains and losses, and net equity in earnings of affiliates.

The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to The AES Corporation. We believe that Adjusted PTC better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the non-recurring nature of the impact of the early contract terminations at Angamos, which affect results in a given period or periods. In addition, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company’s results.

Adjusted PTC should not be construed as an alternative to income from continuing operations attributable to The AES Corporation, which is determined in accordance with GAAP.

49 | The AES Corporation | September 30, 2022 Form 10-Q

	Three Months Ended September 30,				Nine Months Ended September 30,
Reconciliation of Adjusted PTC (in millions)	2022		2021		2022		2021
Income from continuing operations, net of tax, attributable to The AES Corporation	$	421	$	343	$	357	$	219
Income tax expense from continuing operations attributable to The AES Corporation	128		151		149		91
Pre-tax contribution	549		494		506		310
Unrealized derivative and equity securities losses (gains)	(8)		(53)		(2)		24
Unrealized foreign currency losses	3		11		23		5
Disposition/acquisition losses (gains)	4		(33)		36		(277)
Impairment losses	17		18		497		1,121
Loss on extinguishment of debt	4		27		20		51
Net gains from early contract terminations at Angamos	—		(36)		—		(256)
Total Adjusted PTC	$	569	$	428	$	1,080	$	978

50 | The AES Corporation | September 30, 2022 Form 10-Q

Adjusted EPS

We define Adjusted EPS as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence; and (g) tax benefit or expense related to the enactment effects of 2017 U.S. tax law reform and related regulations and any subsequent period adjustments related to enactment effects, including the 2021 tax benefit on reversal of uncertain tax positions effectively settled upon the closure of the Company's U.S. tax return exam.

The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted EPS better reflects the underlying business performance of the Company and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, the one-time impact of the 2017 U.S. tax law reform and subsequent period adjustments related to enactment effects, and the non-recurring nature of the impact of the early contract terminations at Angamos, which affect results in a given period or periods.

Adjusted EPS should not be construed as an alternative to diluted earnings per share from continuing operations, which is determined in accordance with GAAP.

	Three Months Ended September 30,						Nine Months Ended September 30,
Reconciliation of Adjusted EPS	2022			2021			2022			2021
Diluted earnings per share from continuing operations	$	0.59		$	0.48		$	0.50		$	0.31
Unrealized derivative and equity securities losses (gains)	(0.01)			(0.07)		(1)	—			0.03		(2)
Unrealized foreign currency losses	—			0.01			0.03		(3)	0.01
Disposition/acquisition losses (gains)	0.01			(0.05)		(4)	0.05		(5)	(0.40)		(6)
Impairment losses	0.02		(7)	0.03		(8)	0.70		(9)	1.61		(10)
Loss on extinguishment of debt	0.01			0.04		(11)	0.03			0.07		(12)
Net gains from early contract terminations at Angamos	—			(0.05)		(13)	—			(0.37)		(13)
Less: Net income tax expense (benefit)	0.01			0.11		(14)	(0.13)		(15)	(0.19)		(16)
Adjusted EPS	$	0.63		$	0.50		$	1.18		$	1.07

_____________________________

(1)Amount primarily relates to unrealized gains on power and commodities swaps at Southland of $22 million, or $0.03 per share, and unrealized gains on foreign currency derivatives in Argentina associated with government receivables of $15 million, or $0.02 per share, and in Brazil of $11 million, or $0.02 per share.

(2)Amount primarily relates to net unrealized derivative losses in Argentina mainly associated with foreign currency derivatives on government receivables of $26 million, or $0.04 per share.

(3)Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $19 million, or $0.03 per share.

(4)Amount primarily relates to a gain on remeasurement of contingent consideration at AES Clean Energy of $24 million, or $0.03 per share, and gain on sale of Guacolda of $22 million, or $0.03 per share, partially offset by loss on Uplight transaction with shareholders of $11 million, or $0.02 per share.

(5)Amount primarily relates to the recognition of an allowance on the AES Gilbert sales-type lease receivable as a cost of disposition of a business interest of $20 million, or $0.03 per share.

(6)Amount primarily relates to the gain on remeasurement of our equity interest in sPower to acquisition-date fair value of $214 million, or $0.31 per share, and gain on Fluence issuance of shares of $60 million, or $0.09 per share, a gain on remeasurement of contingent consideration at AES Clean Energy of $24 million, or $0.03 per share, and gain on sale of Guacolda of $22 million, or $0.03 per share, partially offset by day-one loss recognized at commencement of a sales-type lease at AES Renewable Holdings of $13 million, or $0.02 per share, and loss on Uplight transaction with shareholders of $11 million, or $0.02 per share.

(7)Amount primarily relates to asset impairment at Jordan of $19 million, or $0.03 per share.

(8)Amount primarily relates to asset impairments at AES Clean Energy of $14 million, or $0.02 per share, and at Panama of $5 million, or $0.01 per share.

(9)Amount primarily relates to asset impairments at Maritza of $468 million, or $0.66 per share, and at Jordan of $19 million, or $0.03 per share.

(10)Amount primarily relates to asset impairments at AES Andes of $540 million, or $0.77 per share, at Puerto Rico of $475 million, or $0.68 per share, at Mountain View of $67 million, or $0.10 per share, at our sPower equity affiliate, impacting equity earnings by $21 million, or $0.03 per share, and at AES Clean Energy of $14 million, or $0.02 per share.

(11)Amount relates to losses on early retirement of debt at AES Andes of $15 million, or $0.02 per share, and Argentina of $8 million, or $0.01 per share.

(12)Amount primarily relates to losses on early retirement of debt at Andres and Los Mina of $15 million, or $0.02 per share, at AES Andes of $15 million, or $0.02 per share, and at Argentina of $8 million, or $0.01 per share.

(13)Amounts relate to net gains at Angamos associated with the early contract terminations with Minera Escondida and Minera Spence of $37 million, or $0.05 per share, and $256 million, or $0.37 per share, for the three and nine months ended September 30, 2021, respectively.

(14)Amount primarily relates to a reduction in the income tax benefit associated with the impairment at Puerto Rico of $44 million, or $0.06 per share, income tax expense related to the gain on sale of Guacolda of $6 million, or $0.01 per share, and income tax expense related to the gain on remeasurement of contingent

51 | The AES Corporation | September 30, 2022 Form 10-Q

consideration at AES Clean Energy of $6 million, or $0.01 per share.

(15)Amount primarily relates to income tax benefits associated with the impairments at Maritza of $73 million, or $0.10 per share, and at Jordan of $8 million, or $0.01 per share.

(16)Amount primarily relates to income tax benefits associated with the impairments at AES Andes of $174 million, or $0.25 per share, at Puerto Rico of $70 million, or $0.10 per share, and at Mountain View of $18 million, or $0.03 per share, partially offset by income tax expense related to net gains at Angamos associated with the early contract terminations with Minera Escondida and Minera Spence of $83 million, or $0.12 per share, income tax expense related to the gain on remeasurement of our equity interest in sPower to acquisition-date fair value of $47 million, or $0.07 per share, and income tax expense related to the gain on Fluence issuance of shares of $13 million, or $0.02 per share.

US and Utilities SBU

The following table summarizes Operating Margin, Adjusted Operating Margin and Adjusted PTC (in millions) for the periods indicated:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Operating Margin	$	227	$	349	$	(122)	-35	%	$	481	$	621	$	(140)	-23	%
Adjusted Operating Margin (1)	206		266		(60)		-23	%	393		514		(121)		-24	%
Adjusted PTC (1)	192		254		(62)		-24	%	319		426		(107)		-25	%

_____________________________

(1)    A non-GAAP financial measure, adjusted for the impact of NCI. See SBU Performance Analysis—Non-GAAP Measures for definition and Item 1.—Business included in our 2021 Form 10-K for the respective ownership interest for key businesses.

Operating Margin for the three months ended September 30, 2022 decreased $122 million, or 35%, which was driven primarily by the following (in millions):

Decrease at Southland primarily due to unrealized derivative losses, partially offset by an increase in capacity sales	$	(40)
Decrease at DPL primarily due to the recognition of previously deferred purchased power costs	(30)
Decrease at AES Indiana driven by a charge resulting from a regulatory settlement, partially offset by lower maintenance expenses due to the timing of planned outages and plant-related projects	(19)
Decrease at Southland Energy due to unrealized derivative losses	(14)
Decrease at Puerto Rico primarily driven by lower availability and higher maintenance costs due to forced outages	(13)
Other	(6)
Total US and Utilities SBU Operating Margin Decrease	$	(122)

Adjusted Operating Margin decreased $60 million primarily due to the drivers above, adjusted for NCI and unrealized gains and losses on derivatives.

Adjusted PTC decreased $62 million, primarily associated with the decrease in Adjusted Operating Margin described above and higher development costs, partially offset by lower interest expense and higher contributions at our U.S. renewables businesses due to timing of renewable projects coming online.

Operating Margin for the nine months ended September 30, 2022 decreased $140 million, or 23%, which was driven primarily by the following (in millions):

Decrease at Southland Energy primarily due to the impact of forced outages at the CCGT units and unrealized derivative losses	$	(34)
Decrease at DPL primarily due to the recognition of previously deferred purchased power costs	(32)
Decrease at AES Indiana driven by a charge resulting from a regulatory settlement and higher maintenance expenses due to timing of planned outages and plant-related projects, partially offset by higher volumes from increased demand and favorable weather	(30)
Decrease at AES Clean Energy driven by increased costs associated with growing the business, partially offset by higher revenue from new projects and the Company’s agreement to supply Google’s data centers with 24/7 carbon-free energy	(23)
Decrease in Puerto Rico primarily driven by higher heat rate and lower availability and higher maintenance costs due to forced outages	(22)
Decrease at AES Hawaii primarily due to increased outages in the current year and closure of the plant in August 2022	(13)
Increase at Southland primarily driven by higher energy sales driven by energy price adjustments from market re-settlements in the prior year and favorable price variances under the commercial hedging strategy, partially offset by higher unrealized losses from commodity derivatives and higher fixed cost	13
Other	1
Total US and Utilities SBU Operating Margin Decrease	$	(140)

Adjusted Operating Margin decreased $121 million primarily due to the drivers above, adjusted for NCI and prior year unrealized losses on derivatives.

Adjusted PTC decreased $107 million, primarily associated with the decrease in Adjusted Operating Margin described above, higher development costs, and lower contributions at our U.S. renewables businesses due to timing of renewable projects coming online, partially offset by lower interest expense.

52 | The AES Corporation | September 30, 2022 Form 10-Q

South America SBU

The following table summarizes Operating Margin, Adjusted Operating Margin and Adjusted PTC (in millions) for the periods indicated:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Operating Margin	$	180	$	199	$	(19)	-10	%	$	576	$	896	$	(320)	-36	%
Adjusted Operating Margin (1)	143		96		47		49	%	472		321		151		47	%
Adjusted PTC (1)	102		83		19		23	%	375		267		108		40	%

_____________________________

(1)    A non-GAAP financial measure, adjusted for the impact of NCI. See SBU Performance Analysis—Non-GAAP Measures for definition and Item 1.—Business included in our 2021 Form 10-K for the respective ownership interest for key businesses. In the first quarter of 2022, AES’ indirect beneficial interest in AES Andes increased from 67% to 99%. See Note 11—Equity included in Item 1.—Financial Statements of this Form 10-Q for further information.

Operating Margin for the three months ended September 30, 2022 decreased $19 million, or 10%, which was driven primarily by the following (in millions):

Lower revenue recognized on contract terminations at Angamos in Chile	$	(55)
Lower margin in Argentina primarily due to an increase in regulatory receivables credit losses allowance and lower thermal dispatch, partially offset by higher availability at TermoAndes	(24)
Higher margin in Brazil primarily due to higher bilateral energy sales and lower energy purchases due to better hydrology, as well as higher wind and solar generation	40
Higher contract margin in Chile primarily associated with lower energy purchases at lower prices, partially offset by higher fixed costs	18
Other	2
Total South America SBU Operating Margin Decrease	$	(19)

After adjusting for the net gains on early contract terminations at Angamos in the prior year, Adjusted Operating Margin increased $47 million due to the increase in ownership in AES Andes from 67% to 99% in the first quarter of 2022.

Adjusted PTC increased $19 million, primarily associated with the increase in Adjusted Operating Margin described above and lower interest expense in Brazil, partially offset by lower capitalized interest at construction projects in Chile and higher realized foreign currency losses in Argentina.

Operating Margin for the nine months ended September 30, 2022 decreased $320 million, or 36%, which was driven primarily by the following (in millions):

Lower revenue recognized on contract terminations at Angamos in Chile	$	(382)
Lower margin in Argentina primarily due to an increase in regulatory receivables credit losses allowance and lower thermal dispatch, partially offset by higher availability at TermoAndes	(20)
Higher contract margin in Chile primarily associated with new generation, lower energy prices for energy purchases, and lower depreciation of coal assets, partially offset by lower availability of Ventanas and higher fixed costs	43
Higher margin in Brazil primarily due to higher bilateral energy sales due to better hydrology and higher solar generation, partially offset by higher energy purchases and fixed costs	27
Increase in Colombia mainly due to an increase in contract prices, partially offset by depreciation of the Colombian peso	12
Total South America SBU Operating Margin Decrease	$	(320)

After adjusting for the net gains on early contract terminations at Angamos in the prior year, Adjusted Operating Margin increased $151 million due to the increase in ownership in AES Andes from 67% to 99% in the first quarter of 2022.

Adjusted PTC increased $108 million, primarily associated with the increase in Adjusted Operating Margin described above and higher interest income in Brazil, partially offset by lower capitalized interest at construction projects in Chile, higher realized foreign currency losses in Argentina, and higher interest expense in Brazil.

53 | The AES Corporation | September 30, 2022 Form 10-Q

MCAC SBU

The following table summarizes Operating Margin, Adjusted Operating Margin and Adjusted PTC (in millions) for the periods indicated:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2022		2021		$ Change		% Change	2022		2021		$ Change		% Change
Operating Margin	$	393	$	138	$	255	NM	$	625	$	381	$	244	64	%
Adjusted Operating Margin (1)	335		106		229		NM	517		284		233		82	%
Adjusted PTC (1)	298		81		217		NM	422		213		209		98	%

_____________________________

(1)    A non-GAAP financial measure, adjusted for the impact of NCI. See SBU Performance Analysis—Non-GAAP Measures for definition and Item 1.—Business included in our 2021 Form 10-K for the respective ownership interest for key businesses.

Operating Margin for the three months ended September 30, 2022 increased $255 million, which was driven primarily by the following (in millions):

Increase in Panama driven by favorable LNG transactions, higher prices due to an increase in the NYMEX Henry Hub index and lower cost of sales resulting from favorable hydrology	$	173
Increase in the Dominican Republic driven by favorable LNG transactions partially offset by higher fixed costs	79
Other	3
Total MCAC SBU Operating Margin Increase	$	255

Adjusted Operating Margin increased $229 million due to the drivers above, adjusted for NCI and unrealized gains on LNG derivatives.

Adjusted PTC increased $217 million, mainly driven by the increase in Adjusted Operating Margin described above, partially offset by a higher allocation of interest expense attributable to AES after Colon’s noncontrolling interest buyout in September 2021 and lower equity earnings from affiliates in Mexico.

Operating Margin for the nine months ended September 30, 2022 increased $244 million, or 64%, which was driven primarily by the following (in millions):

Increase in Panama driven by favorable LNG transactions, higher prices due to an increase in the NYMEX Henry Hub index and lower cost of sales resulting from favorable hydrology	$	166
Increase in the Dominican Republic driven by favorable LNG transactions and higher contract sales due to increased demand and prices, partially offset by an increase in spot purchases and higher fixed costs	99
Decrease in the Dominican Republic mainly driven by the sale of Itabo on April 8, 2021	(19)
Other	(2)
Total MCAC SBU Operating Margin Increase	$	244

Adjusted Operating Margin increased $233 million due to the drivers above, adjusted for NCI and unrealized gains on LNG derivatives.

Adjusted PTC increased $209 million, mainly driven by the increase in Adjusted Operating Margin described above, partially offset by higher allocation of interest expense attributable to AES after Colon’s noncontrolling interest buyout in September 2021.

Eurasia SBU

The following table summarizes Operating Margin, Adjusted Operating Margin and Adjusted PTC (in millions) for the periods indicated:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Operating Margin	$	54	$	46	$	8	17	%	$	196	$	158	$	38	24	%
Adjusted Operating Margin (1)	41		35		6		17	%	142		118		24		20	%
Adjusted PTC (1)	47		45		2		4	%	154		144		10		7	%

_____________________________

(1)    A non-GAAP financial measure, adjusted for the impact of NCI. See SBU Performance Analysis—Non-GAAP Measures for definition and Item 1.—Business included in our 2021 Form 10-K for the respective ownership interest for key businesses.

54 | The AES Corporation | September 30, 2022 Form 10-Q

Operating Margin for the three months ended September 30, 2022 increased $8 million, or 17%, which was driven primarily by the following (in millions):

Higher merchant prices captured by Kavarna, partially offset by Euro depreciation	$	10
Other	(2)
Total Eurasia SBU Operating Margin Increase	$	8

Adjusted Operating Margin increased $6 million due to the drivers above, adjusted for NCI.

Adjusted PTC increased $2 million, mainly driven by the increase in Adjusted Operating Margin described above, partially offset by higher interest expense.

Operating Margin for the nine months ended September 30, 2022 increased $38 million, or 24%, which was driven primarily by the following (in millions):

Construction revenue for Mong Duong driven by a reduction in expected completion costs for ash pond 2	$	19
Higher merchant prices captured by Kavarna, partially offset by Euro depreciation	17
Other	2
Total Eurasia SBU Operating Margin Increase	$	38

Adjusted Operating Margin increased $24 million due to the drivers above, adjusted for NCI.

Adjusted PTC increased $10 million, mainly driven by the increase in Adjusted Operating Margin described above, partially offset by higher interest expense.

Operational

COVID-19 Pandemic — The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Throughout the COVID-19 pandemic we have conducted our essential operations without significant disruption. We derive approximately 85% of our total revenues from our regulated utilities and long-term sales and supply contracts or PPAs at our generation businesses, which contributes to a relatively stable revenue and cost structure at most of our businesses. In 2022, our operational locations continued to experience the impact of, and recovery from, the COVID-19 pandemic. Across our global portfolio, our utilities businesses have generally performed in line with our expectations consistent with a recovery from the COVID-19 pandemic. While we cannot predict the length and magnitude of the pandemic, including the impact of current or future variants, or how it could impact global economic conditions, a delayed recovery with respect to demand may adversely impact our financial results for 2022. Also see Item 1A.—Risk Factors of our 2021 Form 10-K.

We continue to monitor and manage our credit exposures in a prudent manner. Our credit exposures have continued in-line with historical levels and within the customary 45-60 day grace period. We have not experienced any material credit-related impacts from our PPA offtakers due to the COVID-19 pandemic.

Our supply chain management has remained robust during this challenging time and we continue to closely manage and monitor developments. We continue to experience certain minor delays in some of our development projects, primarily in permitting processes and the implementation of interconnections, due to governments and other authorities having limited capacity to perform their functions.

Trade Restrictions and Supply Chain — On March 29, 2022, the U.S. Department of Commerce (“Commerce”) announced the initiation of an investigation into whether imports into the U.S. of solar cells and panels imported from Cambodia, Malaysia, Thailand, and Vietnam are circumventing antidumping and countervailing duty orders on solar cells and panels from China. This investigation resulted in significant systemic disruptions to the import of solar cells and panels from Southeast Asia. On July 6, 2022, President Biden issued a Proclamation waiving any tariffs that result from this investigation for a 24-month period. Following President Biden’s proclamation, suppliers in Southeast Asia have begun importing cells and panels again to the U.S. We have contracted and substantially secured our expected requirements for solar panels for U.S. projects targeted to achieve commercial operations in 2022 and are working to secure our requirements for future years.

Additionally, the Uyghur Forced Labor Prevention Act (“UFLPA”) seeks to block the import of products made with forced labor in certain areas of China and may lead to certain suppliers being blocked from importing solar cells and panels to the U.S. Certain suppliers, including a supplier that AES contracts with, have had shipments detained pending satisfactory documentation of compliance with the UFLPA. While our projects have not been impacted, further disruptions may impact our suppliers’ ability or willingness to meet their contractual agreements or to continue to supply cells or panels into the U.S. market on terms that we deem satisfactory.

55 | The AES Corporation | September 30, 2022 Form 10-Q

The impact of any adverse Commerce determination, the impact of the UFLPA, future disruptions to the solar panel supply chain and their effect on AES’ U.S. solar project development and construction activities are uncertain. AES will continue to monitor developments and take prudent steps towards maintaining a robust supply chain for our renewables projects.

Key Trends and Uncertainties

During the remainder of 2022 and beyond, we expect to face the following challenges at certain of our businesses. Management expects that improved operating performance at certain businesses, growth from new businesses, and global cost reduction initiatives may lessen or offset their impact. If these favorable effects do not occur, or if the challenges described below and elsewhere in this section impact us more significantly than we currently anticipate, or if volatile foreign currencies and commodities move more unfavorably, then these adverse factors (or other adverse factors unknown to us) may have a material impact on our operating margin, net income attributable to The AES Corporation, and cash flows. We continue to monitor our operations and address challenges as they arise. For the risk factors related to our business, see Item 1.—Business and Item 1A.—Risk Factors of our 2021 Form 10-K.

Macroeconomic and Political

During the past few years, some countries where our subsidiaries conduct business have experienced macroeconomic and political changes. In the event these trends continue, there could be an adverse impact on our businesses.

Inflation Reduction Act and U.S. Renewable Energy Tax Credits — The Inflation Reduction Act (the “IRA”) was signed into law in the United States. The IRA includes provisions that are expected to benefit the U.S. clean energy industry, including increases, extensions and/or new tax credits for onshore and offshore wind, solar, storage and hydrogen projects. We expect that the extension of the current solar investment tax credits (ITC), as well as higher credits available for projects that satisfy wage and apprenticeship requirements, will increase demand for our renewables products.

Our U.S. renewables business has a 51 GW pipeline that we intend to utilize to continue to grow our business, and these changes in tax policy are supportive of this strategy. We account for U.S. renewables projects according to U.S. GAAP, which, when partnering with tax-equity investors to monetize tax benefits, utilizes the HLBV method. This method recognizes the tax-credit value that is transferred to tax equity partners at the time of its creation, which for projects utilizing the investment tax credit is in the quarter the project begins commercial operation. For projects utilizing the production tax credit, this value is recognized over 10 years as the facility produces energy. In 2022, we estimate that we will realize approximately $200-$230 million of Adjusted PTC from tax credits earned by our U.S. renewables business.

The implementation of the IRA is expected to require substantial guidance from the U.S. Department of Treasury and other government agencies. While that guidance is pending, there will be uncertainty with respect to the implementation of certain provisions of the IRA.

Puerto Rico — As discussed in Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Trends and Uncertainties of the 2021 Form 10-K, our subsidiaries in Puerto Rico have a long-term PPA with state-owned PREPA, which has been facing economic challenges that could result in a material adverse effect on our business in Puerto Rico. Despite the Title III protection, PREPA has been making substantially all of its payments to the generators in line with historical payment patterns.

On April 12, 2022, a mediation team was appointed to prepare the plan to resolve the PREPA Title III case and related proceedings. As of September 16, 2022, the PREPA mediation has been terminated. The Oversight Board has requested for hearings on motions for summary judgment in early April 2023.

AES Puerto Rico and AES Ilumina’s non-recourse debt of $170 million and $27 million, respectively, continue to be in technical default and are classified as current as of September 30, 2022 as a result of PREPA’s bankruptcy filing in July 2017. The Company is in compliance with its debt payment obligations as of September 30, 2022.

Considering the information available as of the filing date, management believes the carrying amount of our long-lived assets in Puerto Rico of $94 million is recoverable as of September 30, 2022.

Global Tax — The macroeconomic and political environments in the U.S. and in some countries where our

56 | The AES Corporation | September 30, 2022 Form 10-Q

subsidiaries conduct business have changed during 2021 and 2022. This could result in significant impacts to tax law. For example, on July 1, 2022, the Chilean government proposed to reduce the corporate tax rate from 27% to 25%, limit net operating loss utilization per year, and introduce a disintegrated system whereby dividends may be subject to a 22% withholding tax, among other changes. The potential impact to the Company may be material.

In the U.S., the IRA includes a 15% corporate alternative minimum tax based on adjusted financial statement income and a 1% excise tax on stock buy backs. We are currently evaluating the applicability and effect of the new law. We have elected an accounting policy not to consider the effects of being subject to the corporate alternative minimum tax in future periods when assessing the realizability of our deferred tax assets, carryforwards, and tax credits. Any effect on the realization of deferred tax assets will be recognized in the period they arise.

In the first quarter of 2022, the European Commission published an amended draft Directive on Pillar 2 which includes numerous amendments compared to the version published in the fourth quarter of 2021. The potential timing for possible enactment and impact to the Company remains unknown but may be material.

Inflation — In the markets in which we operate, there have been higher rates of inflation in recent months. While most of our contracts in our international businesses are indexed to inflation, in general, our U.S.-based generation contracts are not indexed to inflation. If inflation continues to increase in our markets, it may increase our expenses that we may not be able to pass through to customers. It may also increase the costs of some of our development projects that could negatively impact their competitiveness. Our utility businesses do allow for recovering of operations and maintenance costs through the regulatory process, which may have timing impacts on recovery.

Reference Rate Reform — As discussed in Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Trends and Uncertainties of the 2021 Form 10-K, in July 2017, the UK Financial Conduct Authority announced that it intends to phase out LIBOR by the end of 2021. In the U.S., the Alternative Reference Rate Committee at the Federal Reserve identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR; alternative reference rates in other key markets are under development. The ICE Benchmark Association ("IBA") has determined that it will cease publication of the one-month, three-month, six-month, and 12-month USD LIBOR rates by June 30, 2023. AES holds a substantial amount of debt and derivative contracts referencing LIBOR as an interest rate benchmark. In order to facilitate an organized transition from LIBOR to alternative benchmark rate(s), AES has established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of AES’ existing agreements include provisions designed to facilitate an orderly transition from LIBOR, and interest rate derivatives address the LIBOR transition through the adoption of the ISDA 2020 IBOR Fallbacks Protocol and subsequent amendments. To the extent that the terms of the credit agreements and derivative instruments do not align following the cessation of LIBOR rates, AES will seek to negotiate contract amendments with counterparties or additional derivatives contracts.

Decarbonization Initiatives

Our strategy involves shifting towards clean energy platforms, including renewable energy, energy storage, LNG, and modernized grids. It is designed to position us for continued growth while reducing our carbon intensity and in support of our mission of accelerating the future of energy, together. In February 2022, we announced our intent to exit coal generation by year-end 2025, subject to necessary approvals.

In addition, initiatives have been announced by regulators, including in Chile, Puerto Rico, and Hawaii, and offtakers in recent years, with the intention of reducing GHG emissions generated by the energy industry. In parallel, the shift towards renewables has caused certain customers to migrate to other low-carbon energy solutions and this trend may continue.

Although we cannot currently estimate the financial impact of these decarbonization initiatives, new legislative or regulatory programs further restricting carbon emissions or other initiatives to voluntarily exit coal generation could require material capital expenditures, result in a reduction of the estimated useful life of certain coal facilities, or have other material adverse effects on our financial results.

For further information about the risks associated with decarbonization initiatives, see Item 1A.—Risk Factors—Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses included in the 2021 Form 10-K.

57 | The AES Corporation | September 30, 2022 Form 10-Q

Regulatory

AES Maritza PPA Review — DG Comp is conducting a preliminary review of whether AES Maritza’s PPA with NEK is compliant with the European Union's State Aid rules. No formal investigation has been launched by DG Comp to date. However, AES Maritza has been engaging in discussions with the DG Comp case team and the Government of Bulgaria (“GoB”) to attempt to reach a negotiated resolution of DG Comp’s review (“PPA Discussions”). The PPA Discussions are ongoing and the PPA continues to remain in place. However, there can be no assurance that, in the context of the PPA Discussions, the other parties will not seek a prompt termination of the PPA.

We do not believe termination of the PPA is justified. Nevertheless, the PPA Discussions will involve a range of potential outcomes, including but not limited to the termination of the PPA and payment of some level of compensation to AES Maritza. Any negotiated resolution would be subject to mutually acceptable terms, lender consent, and DG Comp approval. At this time, we cannot predict the outcome of the PPA Discussions or when those discussions will conclude. Nor can we predict how DG Comp might resolve its review if the PPA Discussions fail to result in an agreement concerning the agency’s review. AES Maritza believes that its PPA is legal and in compliance with all applicable laws, and it will take all actions necessary to protect its interests, whether through negotiated agreement or otherwise. However, there can be no assurance that this matter will be resolved favorably; if it is not, there could be a material adverse effect on the Company’s financial condition, results of operations, and cash flows. As of September 30, 2022, the carrying value of our long-lived assets at Maritza is $387 million.

AES Ohio Distribution Rate Case — On November 30, 2020, AES Ohio filed a new distribution rate case with the Public Utilities Commission of Ohio (“PUCO”) that proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case, but not yet included in distribution rates, other distribution investments since September 2015, and other investments and expenses. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. The rate case is pending a commission order and we are unable to predict the outcome at this time.

AES Ohio Electric Security Plan — AES Ohio is currently operating pursuant to ESP 1. On September 26, 2022, AES Ohio filed its latest Electric Security Plan (ESP 4) with the PUCO. ESP 4 is a comprehensive plan to enhance and upgrade its network and improve service reliability, provide greater safeguards for price stability, and continue investments in local economic development. As part of this plan, AES Ohio intends to increase investments in the distribution infrastructure and deploy a proactive vegetation management program. The plan also includes proposals for new customer programs, including renewable options, electric vehicle programs, and energy efficiency programs for residential and low-income customers. ESP 4 also seeks to recover outstanding regulatory assets not currently in rates. AES Ohio did not propose that the Rate Stabilization Charge would continue as part of ESP 4. The plan requires PUCO approval.

AES Indiana Integrated Resource Plan (“IRP”) — AES Indiana has begun holding public advisory meetings for its 2022 IRP. Changes to its generation portfolio are evaluated and decided through the IRP. AES Indiana issued an all-source Request for Proposal on April 14, 2022, in order to competitively procure replacement capacity; such need is being evaluated in AES Indiana's 2022 IRP. The 2022 IRP is expected to be filed in the fourth quarter of 2022.

Estí Hydro Plant Flooding Incident

On September 30, 2022, there was a flooding incident that impacted Estí, a 120 MW hydro plant in Panama. The plant was taken out of service while a complete assessment of the damages is ongoing. Repairs will be needed to ensure the long-term performance of the facility, during which time the plant will continue to be out of service. The plant is covered by business interruption and property damage insurance and has already notified its insurers.

The Company has not identified any indicators of impairment and believes the carrying value of the plant of $133 million is recoverable as of September 30, 2022.

Foreign Exchange Rates

We operate in multiple countries and as such are subject to volatility in exchange rates at varying degrees at the subsidiary level and between our functional currency, the USD, and currencies of the countries in which we operate. For additional information, refer to Item 3.—Quantitative and Qualitative Disclosures About Market Risk.

58 | The AES Corporation | September 30, 2022 Form 10-Q

Impairments

Long-lived Assets — During the nine months ended September 30, 2022, the Company recognized asset impairment expense of $533 million. See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information. After recognizing this impairment expense, the carrying value of long-lived assets that were assessed for impairment totaled $389 million at September 30, 2022.

Events or changes in circumstances that may necessitate recoverability tests and potential impairments of long-lived assets may include, but are not limited to, adverse changes in the regulatory environment, unfavorable changes in power prices or fuel costs, increased competition due to additional capacity in the grid, technological advancements, declining trends in demand, evolving industry expectations to transition away from fossil fuel sources for generation, or an expectation it is more likely than not the asset will be disposed of before the end of its estimated useful life.

Goodwill — The Company considers a reporting unit at risk of impairment when its fair value does not exceed its carrying amount by more than 10%. During the annual goodwill impairment test performed as of October 1, 2021, the Company had no reporting units considered to be “at risk,” as the fair value of all reporting units exceeded their carrying amounts by more than 10%. The Company monitors its reporting units for interim impairment indicators, and has determined that no triggering events requiring a reassessment of goodwill impairment exist as of September 30, 2022.

However, the Company has seen degradation in certain inputs to the discount rate used in our goodwill impairment analysis, such as increasing interest rates and country risk premiums in certain markets, since the date of our last impairment test. These changes to the inputs of our discount rate may negatively impact our annual goodwill impairment test as of October 1, 2022. The analysis of the cash flows to which these inputs are applied is currently in process. It is currently not known if these inputs to the discount rate are significant enough to result in an impairment of goodwill.

Should the fair value of any of the Company’s reporting units fall below its carrying amount as a result of these inputs or other changes such as reduced operating performance, market declines, changes in the discount rate, regulatory changes, or other adverse conditions, goodwill impairment charges may be necessary in future periods.

Environmental

The Company is subject to numerous environmental laws and regulations in the jurisdictions in which it operates. The Company faces certain risks and uncertainties related to these environmental laws and regulations, including existing and potential GHG legislation or regulations, and actual or potential laws and regulations pertaining to water discharges, waste management (including disposal of coal combustion residuals) and certain air emissions, such as SO2, NOx, particulate matter, mercury, and other hazardous air pollutants. Such risks and uncertainties could result in increased capital expenditures or other compliance costs which could have a material adverse effect on certain of our U.S. or international subsidiaries and our consolidated results of operations. For further information about these risks, see Item 1A.—Risk Factors—Our operations are subject to significant government regulation and could be adversely affected by changes in the law or regulatory schemes; Several of our businesses are subject to potentially significant remediation expenses, enforcement initiatives, private party lawsuits and reputational risk associated with CCR; Our businesses are subject to stringent environmental laws, rules and regulations; and Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses included in the 2021 Form 10-K.

CSAPR — CSAPR addresses the “good neighbor” provision of the CAA, which prohibits sources within each state from emitting any air pollutant in an amount which will contribute significantly to any other state’s nonattainment, or interference with maintenance of, any NAAQS. The CSAPR required significant reductions in SO2 and NOx emissions from power plants in many states in which subsidiaries of the Company operate. The Company is required to comply with the CSAPR in certain states, including Indiana and Maryland. The CSAPR is implemented, in part, through a market-based program under which compliance may be achievable through the acquisition and use of emissions allowances created by the EPA. The Company complies with CSAPR through operation of existing controls and purchases of allowances on the open market, as needed.

In October 2016, the EPA published a final rule to update the CSAPR to address the 2008 ozone NAAQS (“CSAPR Update Rule”). The CSAPR Update Rule found that NOx ozone season emissions in 22 states (including Indiana, Maryland, Ohio, and Pennsylvania) affected the ability of downwind states to attain and maintain the 2008 ozone NAAQS, and, accordingly, the EPA issued federal implementation plans that both updated existing CSAPR NOx ozone season emission budgets for electric generating units within these states and implemented these

59 | The AES Corporation | September 30, 2022 Form 10-Q

budgets through modifications to the CSAPR NOx ozone season allowance trading program. Implementation started in the 2017 ozone season (May-September 2017). Affected facilities receive fewer ozone season NOx allowances in 2017 and later, possibly resulting in the need to purchase additional allowances. Additionally, on September 13, 2019, the D.C. Circuit remanded a portion of October 2016 CSAPR Update Rule to the EPA. On April 30, 2021, the EPA published a final rule to address the 2020 D.C. Circuit decision. The EPA issued new or amended federal implementation plans for 12 states, including Indiana, Maryland, Ohio, and Pennsylvania, with revised CSAPR NOx ozone season emission budgets for electric generating units within these states via a new CSAPR NOx Ozone Season Group 3 Trading Program. Implementation began during the 2021 ozone season (May-September 2021) with an effective date of June 29, 2021. AES Indiana facilities and AES Warrior Run in Maryland will receive fewer ozone season NOx allowances for future NOx Ozone Seasons beginning in 2021 and later, possibly resulting in the need to purchase additional allowances. In addition, subject sources in these states were required to surrender an equivalent number of previously allocated 2021-2024 Group 2 allowances by deadlines in 2021. This requirement applies inclusive of assets and allowances that have since been sold and/or retired, including former AES assets in Ohio and Pennsylvania. While AES no longer operates electric generating units subject to the revised CSAPR Update Rule in Ohio or Pennsylvania, certain prior AES sources in these states were required to surrender an equivalent number of previously allocated 2021-2024 Group 2 allowances and on July 14, 2021 the required allowances were recalled by the EPA, fulfilling this obligation.

On April 6, 2022, the EPA published a proposed Federal Implementation Plan to address air quality impacts with respect to the 2015 Ozone NAAQS. The rule would establish a revised CSAPR NOx Ozone Season Group 3 trading program of 25 states, including Indiana and Maryland. In addition to other requirements, if finalized, electric generating units (“EGUs”) in these states would begin receiving fewer allowances as soon as 2023, possibly resulting in the need to purchase additional allowances.

While the Company's additional CSAPR compliance costs to date have been immaterial, the future availability of and cost to purchase allowances to meet the emission reduction requirements is uncertain at this time, but it could be material.

Climate Change Regulation — On July 8, 2019, the EPA published the final Affordable Clean Energy (“ACE”) Rule, along with associated revisions to implementing regulations, in addition to final revocation of the CPP. The ACE Rule determines that heat rate improvement measures are the Best System of Emissions Reductions for existing coal-fired electric generating units. The final ACE Rule established CO2 emission rules for existing power plants under CAA Section 111(d) and replaced the EPA's 2015 Clean Power Plan Rule (“CPP”), which among other things, had called on states to mandate that power companies shift electricity generation to lower or zero carbon fuel sources. In the final ACE rule, the EPA determined that heat rate improvement measures are the Best System of Emissions Reductions for existing coal-fired electric generating units. AES Indiana Petersburg and AES Warrior Run have coal-fired electric generating units that could have been impacted by this regulation. On January 19, 2021, the D.C. Circuit vacated and remanded to the EPA the ACE Rule, although the parties had an opportunity to request a rehearing at the D.C. Circuit or seek a review of the decision by the U.S. Supreme Court. On March 5, 2021, the D.C. Circuit issued a partial mandate effectuating the vacatur of the ACE Rule. In effect, the CPP did not take effect while the EPA is addressing the remand of the ACE rule by promulgating a new Section 111(d) rule to regulate greenhouse gases from existing electric generating units. On October 29, 2021, the U.S. Supreme Court granted petitions to review the decision by the D.C. Circuit to vacate the ACE Rule. On June 30, 2022, the Supreme Court reversed the judgment of the D.C. Circuit Court and remanded for further proceedings consistent with its opinion. The opinion held that the “generation shifting” approach in the CPP exceeded the authority granted to the EPA by Congress under Section 111(d) of the CAA. As a result of the June 30, 2022 Supreme Court decision, on October 27, 2022, the D.C. Circuit recalled its March 5, 2021 partial mandate and issued a new partial mandate, holding pending challenges to the ACE Rule in abeyance while the EPA develops a replacement rule. The impact of the results of further proceedings and potential future greenhouse gas emissions regulations remains uncertain.

Waste Management — On October 19, 2015, an EPA rule regulating CCR under the Resource Conservation and Recovery Act as nonhazardous solid waste became effective. The rule established nationally applicable minimum criteria for the disposal of CCR in new and currently operating landfills and surface impoundments, including location restrictions, design and operating criteria, groundwater monitoring, corrective action and closure requirements, and post-closure care. The primary enforcement mechanisms under this regulation would be actions commenced by the states and private lawsuits. On December 16, 2016, the Water Infrastructure Improvements for the Nation Act ("WIN Act") was signed into law. This includes provisions to implement the CCR rule through a state permitting program, or if the state chooses not to participate, a possible federal permit program. If this rule is finalized before Indiana or Puerto Rico establishes a state-level CCR permit program, AES CCR units in those locations could eventually be required to apply for a federal CCR permit from the

60 | The AES Corporation | September 30, 2022 Form 10-Q

EPA. The EPA has indicated that it will implement a phased approach to amending the CCR Rule, which is ongoing. On August 28, 2020, the EPA published final amendments to the CCR Rule titled "A Holistic Approach to Closure Part A: Deadline to Initiate Closure," that, among other amendments, required certain CCR units to cease waste receipt and initiate closure by April 11, 2021. The CCR Part A Rule also allowed for extensions of the April 11, 2021 deadline if the EPA determines certain criteria are met. Facilities seeking such an extension were required to submit a demonstration to the EPA by November 30, 2020. On January 11, 2022, the EPA released the first in a series of proposed determinations regarding CCR Part A Rule demonstrations and compliance-related letters notifying certain other facilities of their compliance obligations under the federal CCR regulations. The determinations and letters include interpretations regarding implementation of the CCR Rule. On April 8, 2022, petitions for review were filed challenging these EPA actions. The petitions are consolidated in Electric Energy, Inc. v. EPA. It is too early to determine the direct or indirect impact of these letters or any determinations that may be made.

The CCR rule, current or proposed amendments to or interpretations of the CCR rule, the results of groundwater monitoring data, or the outcome of CCR-related litigation could have a material impact on our business, financial condition, and results of operations. AES Indiana would seek recovery of any resulting expenditures; however, there is no guarantee we would be successful in this regard.

Capital Resources and Liquidity

Overview

As of September 30, 2022, the Company had unrestricted cash and cash equivalents of $1.6 billion, of which $49 million was held at the Parent Company and qualified holding companies. The Company had $671 million in short-term investments, held primarily at subsidiaries, and restricted cash and debt service reserves of $481 million. The Company also had non-recourse and recourse aggregate principal amounts of debt outstanding of $17.4 billion and $4.7 billion, respectively. Of the $2 billion of our current non-recourse debt, $1.8 billion was presented as such because it is due in the next twelve months and $204 million relates to debt considered in default due to covenant violations. None of the defaults are payment defaults but are instead technical defaults triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents, of which $197 million is due to the bankruptcy of the offtaker.

We expect current maturities of non-recourse debt to be repaid from net cash provided by operating activities of the subsidiary to which the debt relates, through opportunistic refinancing activity, or some combination thereof. We have no recourse debt which matures within the next twelve months. From time to time, we may elect to repurchase our outstanding debt through cash purchases, privately negotiated transactions, or otherwise when management believes that such securities are attractively priced. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, and other factors. The amounts involved in any such repurchases may be material.

We rely mainly on long-term debt obligations to fund our construction activities. We have, to the extent available at acceptable terms, utilized non-recourse debt to fund a significant portion of the capital expenditures and investments required to construct and acquire our electric power plants, distribution companies, and related assets. Our non-recourse financing is designed to limit cross-default risk to the Parent Company or other subsidiaries and affiliates. Our non-recourse long-term debt is a combination of fixed and variable interest rate instruments. Debt is typically denominated in the currency that matches the currency of the revenue expected to be generated from the benefiting project, thereby reducing currency risk. In certain cases, the currency is matched through the use of derivative instruments. The majority of our non-recourse debt is funded by international commercial banks, with debt capacity supplemented by multilaterals and local regional banks.

Given our long-term debt obligations, the Company is subject to interest rate risk on debt balances that accrue interest at variable rates. When possible, the Company will borrow funds at fixed interest rates or hedge its variable rate debt to fix its interest costs on such obligations. In addition, the Company has historically tried to maintain at least 70% of its consolidated long-term obligations at fixed interest rates, including fixing the interest rate through the use of interest rate swaps. These efforts apply to the notional amount of the swaps compared to the amount of related underlying debt. Presently, the Parent Company’s only material unhedged exposure to variable interest rate debt relates to drawings of $1.1 billion under its revolving credit facility. On a consolidated basis, of the Company’s $22.3 billion of total gross debt outstanding as of September 30, 2022, approximately $4.2 billion bore interest at variable rates that were not subject to a derivative instrument which fixed the interest rate. Brazil holds $1.4 billion of our floating rate non-recourse exposure as variable rate instruments act as a natural hedge against inflation in Brazil.

61 | The AES Corporation | September 30, 2022 Form 10-Q

In addition to utilizing non-recourse debt at a subsidiary level when available, the Parent Company provides a portion, or in certain instances all, of the remaining long-term financing or credit required to fund development, construction, or acquisition of a particular project. These investments have generally taken the form of equity investments or intercompany loans, which are subordinated to the project’s non-recourse loans. We generally obtain the funds for these investments from our cash flows from operations, proceeds from the sales of assets and/or the proceeds from our issuances of debt, common stock and other securities. Similarly, in certain of our businesses, the Parent Company may provide financial guarantees or other credit support for the benefit of counterparties who have entered into contracts for the purchase or sale of electricity, equipment, or other services with our subsidiaries or lenders. In such circumstances, if a business defaults on its payment or supply obligation, the Parent Company will be responsible for the business’ obligations up to the amount provided for in the relevant guarantee or other credit support. As of September 30, 2022, the Parent Company had provided outstanding financial and performance-related guarantees or other credit support commitments to or for the benefit of our businesses, which were limited by the terms of the agreements, of approximately $2.3 billion in aggregate (excluding those collateralized by letters of credit and other obligations discussed below).

As the Parent Company has only recently been upgraded to investment grade by all three rating agencies, some counterparties may be unwilling to accept our general unsecured commitments to provide credit support. Accordingly, with respect to both new and existing commitments, the Parent Company may be required to provide some other form of assurance, such as a letter of credit, to backstop or replace our credit support. The Parent Company may not be able to provide adequate assurances to such counterparties. To the extent we are required and able to provide letters of credit or other collateral to such counterparties, this will reduce the amount of credit available to us to meet our other liquidity needs. As of September 30, 2022, we had $156 million in letters of credit outstanding provided under our unsecured credit facility and $26 million in letters of credit outstanding provided under our revolving credit facility. These letters of credit operate to guarantee performance relating to certain project development and construction activities and business operations. During the quarter ended September 30, 2022, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.

We expect to continue to seek, where possible, non-recourse debt financing in connection with the assets or businesses that we or our affiliates may develop, construct, or acquire. However, depending on local and global market conditions and the unique characteristics of individual businesses, non-recourse debt may not be available on economically attractive terms or at all. If we decide not to provide any additional funding or credit support to a subsidiary project that is under construction or has near-term debt payment obligations and that subsidiary is unable to obtain additional non-recourse debt, such subsidiary may become insolvent, and we may lose our investment in that subsidiary. Additionally, if any of our subsidiaries lose a significant customer, the subsidiary may need to withdraw from a project or restructure the non-recourse debt financing. If we or the subsidiary choose not to proceed with a project or are unable to successfully complete a restructuring of the non-recourse debt, we may lose our investment in that subsidiary.

Many of our subsidiaries depend on timely and continued access to capital markets to manage their liquidity needs. The inability to raise capital on favorable terms, to refinance existing indebtedness, or to fund operations and other commitments during times of political or economic uncertainty may have material adverse effects on the financial condition and results of operations of those subsidiaries. In addition, changes in the timing of tariff increases or delays in the regulatory determinations under the relevant concessions could affect the cash flows and results of operations of our businesses.

Long-Term Receivables

As of September 30, 2022, the Company had approximately $94 million of gross accounts receivable classified as Other noncurrent assets. These noncurrent receivables mostly consist of accounts receivable in the U.S. and Chile that, pursuant to amended agreements or government resolutions, have collection periods that extend beyond September 30, 2023, or one year from the latest balance sheet date. The receivables in the U.S. are associated with future premium payments on a heat rate call option which are expected to be received in 2024. Noncurrent receivables in Chile pertain primarily to revenues recognized on regulated energy contracts that were impacted by the Stabilization Fund created by the Chilean government. A portion relates to the extension of existing PPAs with the addition of renewable energy. See Note 5—Financing Receivables in Item 1.—Financial Statements of this Form 10-Q and Item 1.—Business—South America SBU—Argentina—Regulatory Framework and Market Structure included in our 2021 Form 10-K for further information.

As of September 30, 2022, the Company had approximately $1.2 billion of loans receivable primarily related to a facility constructed under a build, operate, and transfer contract in Vietnam. This loan receivable represents contract consideration related to the construction of the facility, which was substantially completed in 2015, and will

62 | The AES Corporation | September 30, 2022 Form 10-Q

be collected over the 25-year term of the plant’s PPA. In December 2020, Mong Duong met the held-for-sale criteria and the loan receivable balance, net of CECL reserve, was reclassified to held-for-sale assets. As of September 30, 2022, $96 million of the loan receivable balance was classified as Current held-for-sale assets and $1.1 billion was classified as Noncurrent held-for-sale assets on the Condensed Consolidated Balance Sheets. See Note 13—Revenue in Item 1.—Financial Statements of this Form 10-Q for further information.

Cash Sources and Uses

The primary sources of cash for the Company in the nine months ended September 30, 2022 were debt financings, cash flows from operating activities, and sales of short-term investments. The primary uses of cash in the nine months ended September 30, 2022 were repayments of debt, capital expenditures, purchases of short-term investments, acquisitions of noncontrolling interests and purchases of emissions allowances.

The primary sources of cash for the Company in the nine months ended September 30, 2021 were were debt financings, cash flows from operating activities, proceeds from the issuance of Equity Units, and sales of short-term investments. The primary uses of cash in the nine months ended September 30, 2021 were repayments of debt, capital expenditures, and purchases of short-term investments.

A summary of cash-based activities are as follows (in millions):

	Nine Months Ended September 30,
Cash Sources:	2022		2021
Borrowings under the revolving credit facilities	$	4,214	$	1,251
Issuance of non-recourse debt	3,554		978
Net cash provided by operating activities	1,649		1,379
Sale of short-term investments	654		525
Sales to noncontrolling interests	336		81
Issuance of recourse debt	200		7
Contributions from noncontrolling interests	122		95
Affiliate repayments and returns of capital	71		195
Issuance of preferred shares in subsidiaries	60		151
Issuance of preferred stock	—		1,014
Other	53		91
Total Cash Sources	$	10,913	$	5,767
Cash Uses:
Repayments under the revolving credit facilities	$	(2,782)	$	(1,031)
Capital expenditures	(2,711)		(1,534)
Repayments of non-recourse debt	(1,772)		(1,342)
Purchase of short-term investments	(1,091)		(372)
Acquisitions of noncontrolling interests	(541)		(17)
Purchase of emissions allowances	(415)		(179)
Dividends paid on AES common stock	(316)		(301)
Contributions and loans to equity affiliates	(202)		(321)
Distributions to noncontrolling interests	(129)		(173)
Acquisitions of business interests, net of cash and restricted cash sold	(114)		(93)
Other	(290)		(257)
Total Cash Uses	$	(10,363)	$	(5,620)
Net increase in Cash, Cash Equivalents, and Restricted Cash	$	550	$	147

Consolidated Cash Flows

The following table reflects the changes in operating, investing, and financing cash flows for the comparative nine month period (in millions):

	Nine Months Ended September 30,
Cash flows provided by (used in):	2022		2021		$ Change
Operating activities	$	1,649	$	1,379	$	270
Investing activities	(3,825)		(1,728)		(2,097)
Financing activities	2,863		521		2,342

63 | The AES Corporation | September 30, 2022 Form 10-Q

Operating Activities

Net cash provided by operating activities increased $270 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

Operating Cash Flows (1)

(in millions)

(1)Amounts included in the chart above include the results of discontinued operations, where applicable.

(2)The change in adjusted net income is defined as the variance in net income, net of the total adjustments to net income as shown on the Condensed Consolidated Statements of Cash Flows in Item 1—Financial Statements of this Form 10-Q.

(3)The change in working capital is defined as the variance in total changes in operating assets and liabilities as shown on the Condensed Consolidated Statements of Cash Flows in Item 1—Financial Statements of this Form 10-Q.

•Adjusted net income decreased $338 million primarily due to lower margins at our South America and US and Utilities SBUs and an increase in interest expense, partially offset by higher margins at our MCAC and Eurasia SBUs.

•Working capital requirements decreased $608 million, primarily due to deferred income at Angamos in the prior year due to revenue recognized for the early contract terminations with Minera Escondida and Minera Spence, the GSF liability payment at Tietê in the prior year, and the change in income tax liabilities, partially offset by an increase in inventory, primarily fuel and other raw materials, at AES Andes, AES Indiana and Panama.

Investing Activities

Net cash used in investing activities increased $2.1 billion for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

Investing Cash Flows

(in millions)

•Cash used for short-term investing activities increased $590 million, primarily at AES Brasil as a result of higher net short-term investment purchases in 2022.

•Purchases of emissions allowances increased $236 million, primarily in Bulgaria as a result of increased demand and higher CO2 prices.

•Capital expenditures increased $1.2 billion, discussed further below.

64 | The AES Corporation | September 30, 2022 Form 10-Q

Capital Expenditures

(in millions)

•Growth expenditures increased $1.1 billion, primarily driven by an increase in renewable projects at AES Clean Energy and AES Brasil, and by higher TDSIC plan and renewable project investments at AES Indiana, partially offset by the timing of payments for the construction of the Alamitos Energy Center at Southland Energy in the prior year.

•Maintenance expenditures increased $65 million, primarily due to increased expenditures at AES Indiana and AES Ohio.

•Environmental expenditures decreased $2 million, with no material drivers.

Financing Activities

Net cash provided by financing activities increased $2.3 billion for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

Financing Cash Flows

(in millions)

See Notes 7—Debt and 11—Equity in Item 1—Financial Statements of this Form 10-Q for more information regarding significant debt and equity transactions.

•The $2.1 billion impact from non-recourse debt transactions is primarily due to an increase in net borrowings in the Netherlands and Panama, the United Kingdom, AES Clean Energy, IPALCO, AES Ohio, AES Brasil, and AES Andes, and by a decrease in net repayments in the Dominican Republic.

•The $805 million impact from Parent Company revolver transactions is primarily due to higher net borrowings in the current year.

•The $407 million impact from from non-recourse revolver transactions is primarily due to higher net borrowings at AES Clean Energy and in the Dominican Republic and Argentina, partially offset by higher net repayments at AES Ohio and lower net borrowings at AES Andes.

•The $255 million impact from sales to noncontrolling interests is primarily due to proceeds received from the sales of ownership interests in Andes Solar 2a and Los Olmos as part of the Chile Renovables renewable partnership, and at AES Clean Energy from the sales of ownership in project companies to tax equity partners.

65 | The AES Corporation | September 30, 2022 Form 10-Q

•The $171 million impact from recourse debt transactions is primarily due to higher net borrowings at the Parent Company.

•The $1 billion impact from issuance of preferred stock is due to the issuance of Equity Units at the Parent Company in the prior year.

•The $524 million impact from acquisitions of noncontrolling interests is mainly due to the acquisition of an additional 32% ownership interest in AES Andes.

Parent Company Liquidity

The following discussion is included as a useful measure of the liquidity available to The AES Corporation, or the Parent Company, given the non-recourse nature of most of our indebtedness. Parent Company Liquidity, as outlined below, is a non-GAAP measure and should not be construed as an alternative to Cash and cash equivalents, which is determined in accordance with GAAP. Parent Company Liquidity may differ from similarly titled measures used by other companies. The principal sources of liquidity at the Parent Company level are dividends and other distributions from our subsidiaries, including refinancing proceeds, proceeds from debt and equity financings at the Parent Company level, including availability under our revolving credit facility, and proceeds from asset sales. Cash requirements at the Parent Company level are primarily to fund interest and principal repayments of debt, construction commitments, other equity commitments, acquisitions, taxes, Parent Company overhead and development costs, and dividends on common stock.

The Company defines Parent Company Liquidity as cash available to the Parent Company, including cash at qualified holding companies, plus available borrowings under our existing credit facility. The cash held at qualified holding companies represents cash sent to subsidiaries of the Company domiciled outside of the U.S. Such subsidiaries have no contractual restrictions on their ability to send cash to the Parent Company. Parent Company Liquidity is reconciled to its most directly comparable GAAP financial measure, Cash and cash equivalents, at the periods indicated as follows (in millions):

	September 30, 2022		December 31, 2021
Consolidated cash and cash equivalents	$	1,553	$	943
Less: Cash and cash equivalents at subsidiaries	(1,504)		(902)
Parent Company and qualified holding companies’ cash and cash equivalents	49		41
Commitments under the Parent Company credit facility	1,500		1,250
Less: Letters of credit under the credit facility	(26)		(48)
Less: Borrowings under the credit facility	(1,100)		(365)
Borrowings available under the Parent Company credit facility	374		837
Total Parent Company Liquidity	$	423	$	878

The Company utilizes its Parent Company credit facility for short term cash needs to bridge the timing of distributions from its subsidiaries throughout the year.

The Parent Company paid dividends of $0.1580 per outstanding share to its common stockholders during the first, second, and third quarters of 2022 for dividends declared in December 2021, February 2022, and July 2022, respectively. While we intend to continue payment of dividends, and believe we will have sufficient liquidity to do so, we can provide no assurance that we will continue to pay dividends, or if continued, the amount of such dividends.

Recourse Debt

Our total recourse debt was $4.7 billion and $3.8 billion as of September 30, 2022 and December 31, 2021, respectively. See Note 7—Debt in Item 1.—Financial Statements of this Form 10-Q and Note 11—Debt in Item 8.—Financial Statements and Supplementary Data of our 2021 Form 10-K for additional detail.

We believe that our sources of liquidity will be adequate to meet our needs for the foreseeable future. This belief is based on a number of material assumptions, including, without limitation, assumptions about our ability to access the capital markets, the operating and financial performance of our subsidiaries, currency exchange rates, power market pool prices, and the ability of our subsidiaries to pay dividends. In addition, our subsidiaries’ ability to declare and pay cash dividends to us (at the Parent Company level) is subject to certain limitations contained in loans, governmental provisions and other agreements. We can provide no assurance that these sources will be available when needed or that the actual cash requirements will not be greater than anticipated. We have met our interim needs for shorter-term and working capital financing at the Parent Company level with our revolving credit facility. See Item 1A.—Risk Factors—The AES Corporation’s ability to make payments on its outstanding indebtedness is dependent upon the receipt of funds from our subsidiaries of the Company’s 2021 Form 10-K for additional information.

66 | The AES Corporation | September 30, 2022 Form 10-Q

Various debt instruments at the Parent Company level, including our revolving credit facility, contain certain restrictive covenants. The covenants provide for, among other items, limitations on other indebtedness, liens, investments and guarantees; limitations on dividends, stock repurchases and other equity transactions; restrictions and limitations on mergers and acquisitions, sales of assets, leases, transactions with affiliates and off-balance sheet and derivative arrangements; maintenance of certain financial ratios; and financial and other reporting requirements. As of September 30, 2022, we were in compliance with these covenants at the Parent Company level.

Non-Recourse Debt

While the lenders under our non-recourse debt financings generally do not have direct recourse to the Parent Company, defaults thereunder can still have important consequences for our results of operations and liquidity, including, without limitation:

•reducing our cash flows as the subsidiary will typically be prohibited from distributing cash to the Parent Company during the time period of any default;

•triggering our obligation to make payments under any financial guarantee, letter of credit, or other credit support we have provided to or on behalf of such subsidiary;

•causing us to record a loss in the event the lender forecloses on the assets; and

•triggering defaults in our outstanding debt at the Parent Company.

For example, our revolving credit facility and outstanding debt securities at the Parent Company include events of default for certain bankruptcy-related events involving material subsidiaries. In addition, our revolving credit agreement at the Parent Company includes events of default related to payment defaults and accelerations of outstanding debt of material subsidiaries.

Some of our subsidiaries are currently in default with respect to all or a portion of their outstanding indebtedness. The total non-recourse debt classified as current in the accompanying Condensed Consolidated Balance Sheets amounts to $2 billion. The portion of current debt related to such defaults was $204 million at September 30, 2022, all of which was non-recourse debt related to three subsidiaries — AES Puerto Rico, AES Ilumina, and AES Jordan Solar. An additional $69 million of debt in default exists at the subsidiary AES Jordan PSC which was classified as a current held-for-sale liability at September 30, 2022. None of the defaults are payment defaults, but are instead technical defaults triggered by failure to comply with other covenants or other conditions contained in the non-recourse debt documents, of which $197 million is due to the bankruptcy of the offtaker. See Note 7—Debt in Item 1.—Financial Statements of this Form 10-Q for additional detail.

None of the subsidiaries that are currently in default are subsidiaries that met the applicable definition of materiality under the Parent Company’s debt agreements as of September 30, 2022, in order for such defaults to trigger an event of default or permit acceleration under the Parent Company’s indebtedness. However, as a result of additional dispositions of assets, other significant reductions in asset carrying values or other matters in the future that may impact our financial position and results of operations or the financial position of the individual subsidiary, it is possible that one or more of these subsidiaries could fall within the definition of a “material subsidiary” and thereby trigger an event of default and possible acceleration of the indebtedness under the Parent Company’s outstanding debt securities. A material subsidiary is defined in the Parent Company’s revolving credit facility as any business that contributed 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently ended fiscal quarters. As of September 30, 2022, none of the defaults listed above, individually or in the aggregate, results in or is at risk of triggering a cross-default under the recourse debt of the Parent Company.

Critical Accounting Policies and Estimates

The condensed consolidated financial statements of AES are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented.

The Company’s significant accounting policies are described in Note 1 — General and Summary of Significant Accounting Policies of our 2021 Form 10-K. The Company’s critical accounting estimates are described in Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2021 Form 10-K. An accounting estimate is considered critical if the estimate requires management to make an assumption about matters that were highly uncertain at the time the estimate was made, different estimates reasonably could have been used, or if changes in the estimate that would have a material impact on the Company’s financial condition or

67 | The AES Corporation | September 30, 2022 Form 10-Q

results of operations are reasonably likely to occur from period to period. Management believes that the accounting estimates employed are appropriate and resulting balances are reasonable; however, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The Company has reviewed and determined that these remain as critical accounting policies as of and for the nine months ended September 30, 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Overview Regarding Market Risks

Our businesses are exposed to and proactively manage market risk. Our primary market risk exposure is to the price of commodities, particularly electricity, oil, natural gas, coal, and environmental credits. In addition, our businesses are exposed to lower electricity prices due to increased competition, including from renewable sources such as wind and solar, as a result of lower costs of entry and lower variable costs. We operate in multiple countries and as such, are subject to volatility in exchange rates at varying degrees at the subsidiary level and between our functional currency, the USD, and currencies of the countries in which we operate. We are also exposed to interest rate fluctuations due to our issuance of debt and related financial instruments.

The disclosures presented in this Item 3 are based upon a number of assumptions; actual effects may differ. The safe harbor provided in Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act shall apply to the disclosures contained in this Item 3. For further information regarding market risk, see Item 1A.—Risk Factors, Fluctuations in currency exchange rates may impact our financial results and position; Wholesale power prices may experience significant volatility in our markets which could impact our operations and opportunities for future growth; We may not be adequately hedged against our exposure to changes in commodity prices or interest rates; and Certain of our businesses are sensitive to variations in weather and hydrology of the 2021 Form 10-K.

Commodity Price Risk

Although we prefer to hedge our exposure to the impact of market fluctuations in the price of electricity, fuels, and environmental credits, some of our generation businesses operate under short-term sales or under contract sales that leave an unhedged exposure on some of our capacity or through imperfect fuel pass-throughs. These businesses subject our operational results to the volatility of prices for electricity, fuels, and environmental credits in competitive markets. We employ risk management strategies to hedge our financial performance against the effects of fluctuations in energy commodity prices. The implementation of these strategies can involve the use of physical and financial commodity contracts, futures, swaps, and options.

The portion of our sales and purchases that are not subject to such agreements or contracted businesses where indexation is not perfectly matched to business drivers will be exposed to commodity price risk. When hedging the output of our generation assets, we utilize contract sales that lock in the spread per MWh between variable costs and the price at which the electricity can be sold.

AES businesses will see changes in variable margin performance as global commodity prices shift. As of September 30, 2022, we project pre-tax earnings exposure on a 10% (uncorrelated) appreciation of commodity prices would be less than a $5 million gain for power and coal, less than a $5 million loss for oil and natural gas. Our estimates exclude correlation of oil with coal or natural gas. For example, a decline in oil or natural gas prices can be accompanied by a decline in coal price if commodity prices are correlated. In aggregate, the Company’s downside exposure occurs with lower power, higher oil, higher natural gas, and higher coal prices. Exposures at individual businesses will change as new contracts or financial hedges are executed, and our sensitivity to changes in commodity prices generally increases in later years with reduced hedge levels at some of our businesses.

Commodity prices affect our businesses differently depending on the local market characteristics and risk management strategies. Spot power prices, contract indexation provisions, and generation costs can be directly or indirectly affected by movements in the price of natural gas, oil, and coal. We have some natural offsets across our businesses such that low commodity prices may benefit certain businesses and be a cost to others. Exposures are not perfectly linear or symmetric. The sensitivities are affected by a number of local or indirect market factors. Examples of these factors include hydrology, local energy market supply/demand balances, regional fuel supply issues, regional competition, bidding strategies, and regulatory interventions such as price caps. Operational flexibility changes the shape of our sensitivities. For instance, certain power plants may limit downside exposure by reducing dispatch in low market environments. Volume variation also affects our commodity exposure. The volume sold under contracts or retail concessions can vary based on weather and economic conditions, resulting in a higher or lower volume of sales in spot markets. Thermal unit availability and hydrology can affect the generation output available for sale and can affect the marginal unit setting power prices.

68 | The AES Corporation | September 30, 2022 Form 10-Q

In the US and Utilities SBU, the generation businesses are largely contracted, but may have residual risk to the extent contracts are not perfectly indexed to the business drivers. At Southland, our existing once-through cooling generation units (“Legacy Assets”) have been requested to continue operating beyond their current retirement date and the OTC policy establishing retirement deadlines has been extended for between one and three years. These assets have contracts in capacity and have seen incremental value in energy revenues.

In the South America SBU, our business in Chile owns assets in the central and northern regions of the country and has a portfolio of contract sales in both. The majority of our PPAs include mechanisms of indexation that adjust the price of energy based on fluctuations in the price of coal, with the specific indices and timing varying by contract, in order to mitigate changes in the price of fuel. For the portion of our contracts not indexed to the price of coal, we have implemented a hedging strategy based on international coal financial instruments for up to three years. In Colombia, we operate under a shorter-term sales strategy with spot market exposure for uncontracted volumes. Because we own hydroelectric assets there, contracts are not indexed to fuel. Additionally, in Brazil, the hydroelectric generating facility is covered by contract sales. Under normal hydrological volatility, spot price risk is mitigated through a regulated sharing mechanism across all hydroelectric generators in the country. Under drier conditions, the sharing mechanism may not be sufficient to cover the business' contract position, and therefore it may have to purchase power at spot prices driven by the cost of thermal generation.

In the MCAC SBU, our businesses have commodity exposure on unhedged volumes. Panama is highly contracted under financial and load-following PPA type structures, exposing the business to hydrology-based variation. To the extent hydrological inflows are greater than or less than the contract volumes, the business will be sensitive to changes in spot power prices which may be driven by oil and natural gas prices in some time periods. In the Dominican Republic, we own natural gas-fired assets contracted under a portfolio of contract sales, and both contract and spot prices may move with commodity prices. Additionally, the contract levels do not always match our generation availability; as such, our assets may be selling the excess above contract levels at spot prices or buy the deficit in the spot market to satisfy contractual obligations.

In the Eurasia SBU, our assets operating in Vietnam and Bulgaria have minimal exposure to commodity price risk as it has no or minor merchant exposure and fuel is subject to a pass-through mechanism.

Foreign Exchange Rate Risk

In the normal course of business, we are exposed to foreign currency risk and other foreign operations risks that arise from investments in foreign subsidiaries and affiliates. A key component of these risks stems from the fact that some of our foreign subsidiaries and affiliates utilize currencies other than our consolidated reporting currency, the USD. Additionally, certain of our foreign subsidiaries and affiliates have entered into monetary obligations in USD or currencies other than their own functional currencies. Certain of our foreign subsidiaries calculate and pay taxes in currencies other than their own functional currency. We have varying degrees of exposure to changes in the exchange rate between the USD and the following currencies: Argentine peso, Brazilian real, Chilean peso, Colombian peso, Dominican peso, Euro, and Mexican peso. These subsidiaries and affiliates have attempted to limit potential foreign exchange exposure by entering into revenue contracts that adjust to changes in foreign exchange rates. We also use foreign currency forwards, swaps, and options, where possible, to manage our risk related to certain foreign currency fluctuations.

AES enters into foreign currency hedges to protect economic value of the business and minimize the impact of foreign exchange rate fluctuations to AES’ portfolio. While protecting cash flows, the hedging strategy is also designed to reduce forward-looking earnings foreign exchange volatility. Due to variation of timing and amount between cash distributions and earnings exposure, the hedge impact may not fully cover the earnings exposure on a realized basis, which could result in greater volatility in earnings. The largest foreign exchange risks over the remaining period of 2022 stem from the following currencies: Brazilian real, Colombian peso, and Euro. As of September 30, 2022, assuming a 10% USD appreciation, cash distributions attributable to foreign subsidiaries exposed to movement in the exchange rate of the Euro and Brazilian real are projected to be impacted by less than $5 million loss, and less than $5 million gain for Colombia peso. These numbers have been produced by applying a one-time 10% USD appreciation to forecasted exposed cash distributions for 2022 coming from the respective subsidiaries exposed to the currencies listed above, net of the impact of outstanding hedges and holding all other variables constant. The numbers presented above are net of any transactional gains or losses. These sensitivities may change in the future as new hedges are executed or existing hedges are unwound. Additionally, updates to the forecasted cash distributions exposed to foreign exchange risk may result in further modification. The sensitivities presented do not capture the impacts of any administrative market restrictions or currency inconvertibility.

Interest Rate Risks

69 | The AES Corporation | September 30, 2022 Form 10-Q

We are exposed to risk resulting from changes in interest rates as a result of our issuance of variable and fixed-rate debt, as well as interest rate swap, cap, floor, and option agreements.

Decisions on the fixed-floating debt mix are made to be consistent with the risk factors faced by individual businesses or plants. Depending on whether a plant’s capacity payments or revenue stream is fixed or varies with inflation, we partially hedge against interest rate fluctuations by arranging fixed-rate or variable-rate financing. In certain cases, particularly for non-recourse financing, we execute interest rate swap, cap, and floor agreements to effectively fix or limit the interest rate exposure on the underlying financing. Most of our interest rate risk is related to non-recourse financings at our businesses.

As of September 30, 2022, the portfolio’s pre-tax earnings exposure for 2022 to a one-time 100-basis-point increase in interest rates for our Argentine peso, Brazilian real, Chilean peso, Colombian peso, Euro, and USD denominated debt would be less than $5 million on interest expense for the debt denominated in these currencies. These amounts do not take into account the historical correlation between these interest rates.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company, under the supervision and with the participation of its management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of its “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO have concluded that our disclosure controls and procedures were effective as of September 30, 2022, to ensure that information required to be disclosed by the Company in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls over Financial Reporting

There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

70 | The AES Corporation | September 30, 2022 Form 10-Q

PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company has accrued for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company believes, based upon information it currently possesses and taking into account established reserves for estimated liabilities and its insurance coverage, that the ultimate outcome of these proceedings and actions is unlikely to have a material adverse effect on the Company's condensed consolidated financial statements. It is reasonably possible, however, that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material, but cannot be estimated as of September 30, 2022.

In December 2001, Grid Corporation of Odisha (“GRIDCO”) served a notice to arbitrate pursuant to the Indian Arbitration and Conciliation Act of 1996 on the Company, AES Orissa Distribution Private Limited (“AES ODPL”), and Jyoti Structures (“Jyoti”) pursuant to the terms of the shareholders agreement between GRIDCO, the Company, AES ODPL, Jyoti and the Central Electricity Supply Company of Orissa Ltd. (“CESCO”), an affiliate of the Company. In the arbitration, GRIDCO asserted that a comfort letter issued by the Company in connection with the Company's indirect investment in CESCO obligates the Company to provide additional financial support to cover all of CESCO's financial obligations to GRIDCO. GRIDCO appeared to be seeking approximately $189 million in damages, plus undisclosed penalties and interest, but a detailed alleged damage analysis was not filed by GRIDCO. The Company counterclaimed against GRIDCO for damages. In June 2007, a 2-to-1 majority of the arbitral tribunal rendered its award rejecting GRIDCO's claims and holding that none of the respondents, the Company, AES ODPL, or Jyoti, had any liability to GRIDCO. The respondents' counterclaims were also rejected. A majority of the tribunal later awarded the respondents, including the Company, some of their costs relating to the arbitration. GRIDCO filed challenges of the tribunal's awards with the local Indian court. GRIDCO's challenge of the costs award has been dismissed by the court, but its challenge of the liability award remains pending. A hearing on the liability award has not taken place to date. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

Pursuant to their environmental audit, AES Sul and AES Florestal discovered 200 barrels of solid creosote waste and other contaminants at a pole factory that AES Florestal had been operating. The conclusion of the audit was that a prior operator of the pole factory, Companhia Estadual de Energia (“CEEE”), had been using those contaminants to treat the poles that were manufactured at the factory. On their initiative, AES Sul and AES Florestal communicated with Brazilian authorities and CEEE about the adoption of containment and remediation measures. In March 2008, the State Attorney of the state of Rio Grande do Sul, Brazil filed a public civil action against AES Sul, AES Florestal and CEEE seeking an order requiring the companies to mitigate the contaminated area located on the grounds of the pole factory and an indemnity payment of approximately R$6 million ($1 million). In October 2011, the State Attorney filed a request for an injunction ordering the defendant companies to contain and remove the contamination immediately. The court granted injunctive relief on October 18, 2011, but determined that only CEEE was required to perform the removal work. In May 2012, CEEE began the removal work in compliance with the injunction. The case is now awaiting judgment. The removal and remediation costs are estimated to be approximately R$15 million to R$60 million ($3 million to $11 million), and there could be additional costs which cannot be estimated at this time. In June 2016, the Company sold AES Sul to CPFL Energia S.A. and as part of the sale, AES Guaiba, a holding company of AES Sul, retained the potential liability relating to this matter. The Company believes that there are meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

In September 2015, AES Southland Development, LLC and AES Redondo Beach, LLC filed a lawsuit against the California Coastal Commission (the “CCC”) over the CCC's determination that the site of AES Redondo Beach included approximately 5.93 acres of CCC-jurisdictional wetlands. The CCC has asserted that AES Redondo Beach has improperly installed and operated water pumps affecting the alleged wetlands in violation of the California Coastal Act and Redondo Beach Local Coastal Program. Potential outcomes of the CCC determination could include an order requiring AES Redondo Beach to perform a restoration and/or pay fines or penalties. AES Redondo Beach believes that it has meritorious arguments concerning the underlying CCC determination, but there can be no assurances that it will be successful. On March 27, 2020, AES Redondo Beach, LLC sold the site to an unaffiliated third-party purchaser that assumed the obligations contained within these proceedings. On May 26, 2020, CCC staff sent AES a NOV directing AES to submit a Coastal Development Permit (“CDP”) application for the removal of the water pumps within the alleged wetlands. AES has submitted the CDP to the permitting authority, the City of Redondo Beach (“the City”), with respect to AES’ plans to disable or remove the pumps. The NOV also directed AES to submit technical analysis regarding additional water pumps located within onsite electrical vaults

71 | The AES Corporation | September 30, 2022 Form 10-Q

and a CDP application for their continued operation. AES has responded to the CCC, providing the requested analysis and seeking further discussion with the agency regarding the CDP. On October 14, 2020, the City deemed the CDP application to be complete and indicated a public hearing will be required, at which time AES must present additional information and analysis on the pumps within the alleged wetlands and the onsite electrical vaults.

In October 2015, AES Indiana received an NOV alleging violations of the Clean Air Act (“CAA”), the Indiana State Implementation Plan (“SIP”), and the Title V operating permit related to alleged particulate and opacity violations at Petersburg Station Unit 3. In addition, in February 2016, AES Indiana received an NOV from the EPA alleging violations of New Source Review and other CAA regulations, the Indiana SIP, and the Title V operating permit at Petersburg Station. On August 31, 2020, AES Indiana reached a settlement with the EPA, the DOJ and the Indiana Department of Environmental Management (“IDEM”), resolving these purported violations of the CAA at Petersburg Station. The settlement agreement, in the form of a proposed judicial consent decree, was approved and entered by the U.S. District Court for the Southern District of Indiana on March 23, 2021, and includes, among other items, the following requirements: annual caps on NOx and SO2 emissions and more stringent emissions limits than AES Indiana's current Title V air permit; payment of civil penalties totaling $1.5 million; a $5 million environmental mitigation project consisting of the construction and operation of a new, non-emitting source of generation at the site; expenditure of $0.3 million on a state-only environmentally beneficial project to preserve local, ecologically-significant lands; and retirement of Units 1 and 2 prior to July 1, 2023. If AES Indiana does not meet the retirement obligation, it must install a Selective Non-Catalytic Reduction System (“SNCR”) on Unit 4.

In October 2017, the Maritime Prosecution Office from Valparaíso issued a ruling alleging responsibility by AES Andes for the presence of coal waste on Ventanas beach and proposed a fine before the Maritime Governor, of approximately $395,000. AES Andes submitted its statement of defense, denying the allegations. In May 2021, AES Andes was notified of an amended Opinion of the Maritime Prosecution Office which extends the alleged liability to a third party and reduces the proposed fine to AES Andes to approximately $372,000. On August 18, 2021, the Maritime Governor issued a resolution affirming the proposed fine, and on September 8, AES Andes filed an administrative action with the Maritime Governor requesting reconsideration of the fine. On December 28, 2021, the resolution rejecting the reinstatement appeal was notified, and on January 17, 2022, AES Andes filed an appeal against that ruling. In April 2022, Puerto Ventanas requested that the Maritime Authority join this proceeding with a parallel proceeding; however, the request was rejected. In May 2022, the General Director of the Maritime Territory and Merchant Marine of the Chilean Navy rejected AES Andes’ appeal and imposed a fine of $341,363. AES Andes will continue with administrative appeals, but the fine must be payed, as it is not suspended during the pendency of the remaining appeals. AES Andes believes that it has meritorious defenses to the allegations; however, there are no assurances it will be successful.

In December 2018, a lawsuit was filed in Dominican Republic civil court against the Company, AES Puerto Rico, and three other AES affiliates. The lawsuit purports to be brought on behalf of over 100 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands $476 million in alleged damages. The lawsuit does not identify, or provide any supporting information concerning, the alleged injuries of the claimants individually. Nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. The relevant AES companies believe that they have meritorious defenses to the claims asserted against them and will defend themselves vigorously in this proceeding; however, there can be no assurances that they will be successful in their efforts.

In February 2019, a separate lawsuit was filed in Dominican Republic civil court against the Company, AES Puerto Rico, two other AES affiliates, and an unaffiliated company and its principal. The lawsuit purports to be brought on behalf of over 200 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2003 and 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands over $900 million in alleged damages. The lawsuit does not identify or provide any supporting information concerning the alleged injuries of the claimants individually, nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. In August 2020, at the request of the relevant AES companies, the case was transferred to a different civil court. Preliminary hearings have taken place and are ongoing. The relevant AES companies believe that they have meritorious defenses to the claims asserted against them and will defend themselves vigorously in this proceeding; however, there can be no assurances that they will be successful in their efforts.

In October 2019, the Superintendency of the Environment (the "SMA") notified AES Andes of certain alleged breaches associated with the environmental permit of the Ventanas Complex, initiating a sanctioning process through Exempt Resolution N° 1 / ROL D-129-2019. The alleged charges include exceeding generation limits, failing to reduce emissions during episodes of poor air quality, exceeding limits on discharges to the sea, and exceeding

72 | The AES Corporation | September 30, 2022 Form 10-Q

noise limits. AES Andes has submitted a proposed “Compliance Program” to the SMA for the Ventanas Complex. The latest version of this Compliance Program was submitted on May 26, 2021. On December 30, 2021, the Compliance Program was approved by the SMA. However an ex officio action was brought by the SMA due to alleged exceedances of generation limits, which would require the Company to reduce SO2, NOx and PM emissions in order to achieve the emissions offset established in the Compliance Program. On January 6, 2022, AES Andes filed a reposition with the SMA seeking modification of the means for compliance with the ex officio action. The reposition filing is currently under review by the SMA. The effects of the ex officio action are suspended until the reposition is resolved, but the SMA ruling is otherwise unaffected. Fines are possible if the SMA determines there is an unsatisfactory execution of the Compliance Program. The cost of proposed Compliance Program is approximately $10.8 million.

In March 2020, Mexico’s Comisión Federal de Electricidad (“CFE”) served an arbitration demand upon AES Mérida III. CFE makes allegations that AES Mérida III is in breach of its obligations under a power and capacity purchase agreement (“Contract”) between the two parties, which allegations related to CFE’s own failure to provide fuel within the specifications of the Contract. CFE seeks to recover approximately $200 million in payments made to AES Mérida under the Contract as well as approximately $480 million in alleged damages for having to acquire power from alternative sources in the Yucatan Peninsula. AES Mérida has filed an answer denying liability to CFE and asserting a counterclaim for damages due to CFE’s breach of its obligations. The parties submitted their respective initial briefs and supporting evidence in December 2020. After additional briefing, the evidentiary hearing took place in November 2021. Closing arguments were heard in May 2022. The parties are awaiting the decision of the arbitration Tribunal. AES Mérida believes that it has meritorious defenses and claims and will assert them vigorously in the arbitration; however, there can be no assurances that it will be successful in its efforts.

On May 12, 2021, the Federal Attorney for Environmental Protection (the “Authority”) initiated an environmental audit at the Termoelectrica del Golfo (“TEG”) and Termoelectrica del Peñoles (“TEP”) thermal generating facilities. On July 15, 2022, TEG was notified of the resolution issued by the Authority, which alleges breaches of air emission regulations, including failure to submit reports. The resolution imposes a fine of $8,467,360 pesos (approximately USD $400,000). The facility filed a nullity judgment to challenge the resolution, and on September 8, 2022, a provisional injunction was granted by the Tribunal, subject to TEG’s presentation of a warranty, which could include a corporate guaranty or bail. The provisional injunction temporarily suspends the obligation to pay the fine while the Tribunal considers a definitive injunction, and potentially, a sentence dismissing the fine. No resolution for TEP’s audit has been issued. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

In February 2022, a lawsuit was filed in Dominican Republic civil court against the Company. The lawsuit purports to be brought on behalf of over 425 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2003 and 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands over $600 million in alleged damages. The lawsuit does not identify or provide any supporting information concerning the alleged injuries of the claimants individually. Nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in this proceeding; however, there can be no assurances that it will be successful in its efforts.

On July 25, 2022, AES Puerto Rico, LP (“AES-PR”) received from the EPA an NOV alleging certain violations of the CAA at AES-PR’s coal-fired power facility in Guayama, Puerto Rico. The NOV alleges AES-PR exceeded an emission limit and did not continuously operate certain monitoring equipment, conduct certain analyses and testing, maintain complete records, and submit certain reports as required by the EPA’s Mercury and Air Toxics Standards. The NOV further alleges AES-PR did not comply fully with the facility’s Title V operating permit. AES-PR is engaging in discussions with the EPA about the NOV. AES-PR will defend its interests, but we cannot predict the outcome of this matter at this time. However, settlements and litigated outcomes of CAA claims alleged against other coal-fired power plants have required companies to pay civil penalties and undertake remedial measures.

ITEM 1A. RISK FACTORS

You should consider carefully the following updates to risk factors, along with the risk factors disclosed in Item 1A.—Risk Factors of our 2021 Form 10-K and other information contained in or incorporated by reference in this Form 10-Q. Additional risks and uncertainties also may adversely affect our business and operations, including those discussed in Item 2.—Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q. The Risk Factors section in our 2021 Form 10-K otherwise remains current in all material respects. If any of the following events actually occur, our business, financial results and financial condition

73 | The AES Corporation | September 30, 2022 Form 10-Q

could be materially adversely affected. We routinely encounter and address risks, some of which may cause our future results to be materially different than we presently anticipate.

The operation of power generation, distribution and transmission facilities involves significant risks.

We are in the business of generating and distributing electricity, which involves certain risks that can adversely affect financial and operating performance, including:

•changes in the availability of our generation facilities or distribution systems due to increases in scheduled and unscheduled plant outages; equipment failure; failure of transmission systems; labor disputes; disruptions in fuel supply; poor hydrologic and wind conditions; inability to comply with regulatory or permit requirements; or catastrophic events such as fires, floods, storms, hurricanes, earthquakes, dam failures, tsunamis, explosions, terrorist acts, cyber-attacks or other similar occurrences; and

•changes in our operating cost structure, including, but not limited to, increases in costs relating to gas, coal, oil and other fuel; fuel transportation; purchased electricity; operations, maintenance and repair; environmental compliance, including the cost of purchasing emissions offsets and capital expenditures to install environmental emission equipment; transmission access; and insurance.

Our businesses require reliable transportation sources (including related infrastructure such as roads, ports and rail), power sources, and water sources to access and conduct operations. The availability and cost of this infrastructure affects capital and operating costs and levels of production and sales. Limitations or interruptions in this infrastructure or at the facilities of our subsidiaries, including as a result of third parties intentionally or unintentionally disrupting this infrastructure or the facilities of our subsidiaries, could impede their ability to produce electricity.

In addition, a portion of our generation facilities were constructed many years ago and may require significant capital expenditures for maintenance. The equipment at our plants requires periodic upgrading, improvement or repair and replacement equipment or parts may be difficult to obtain in circumstances where we rely on a single supplier or a small number of suppliers. The inability to obtain replacement equipment or parts, due to disruption of the supply chain or other factors, may impact the ability of our plants to perform. Breakdown or failure of one of our operating facilities may prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of a power purchase or other agreement or incurrence of a liability for liquidated damages and/or other penalties.

Power generation involves hazardous activities, including acquiring, transporting and unloading fuel, operating large pieces of rotating equipment, and delivering electricity to transmission and distribution systems. In addition to natural risks, such as earthquakes, floods, lightning, hurricanes and wind, hazards, such as fire, explosion, collapse and machinery failure, are inherent risks in our operations which may occur as a result of inadequate internal processes, technological flaws, human error or actions of third parties or other external events. The control and management of these risks depend upon adequate development and training of personnel and on operational procedures, preventative maintenance plans, and specific programs supported by quality control systems, which may not prevent the occurrence and impact of these risks.

In addition, our battery storage operations also involve risks associated with lithium-ion batteries. On rare occasions, lithium-ion batteries can rapidly release the energy they contain by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion batteries. While more recent design developments for our storage projects seek to minimize the impact of such events, these events are inherent risks of our battery storage operations.

The hazards described above, along with other safety hazards associated with our operations, can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of, or damage to, the environment and suspension of operations. The occurrence of any one of these events may result in our being named as a defendant in lawsuits asserting claims for substantial damages, environmental cleanup costs, personal injury and fines, and/or penalties.

Furthermore, we and our affiliates are parties to material litigation and regulatory proceedings. See Item 1.— Legal Proceedings above. There can be no assurance that the outcomes of such matters will not have a material adverse effect on our consolidated financial position.

74 | The AES Corporation | September 30, 2022 Form 10-Q

Our renewable energy projects and other initiatives face considerable uncertainties.

Wind, solar, and energy storage projects are subject to substantial risks. Some of these business lines are dependent upon favorable regulatory incentives to support continued investment, and there is significant uncertainty about the extent to which such favorable regulatory incentives will be available in the future. In particular, in the U.S., AES’ renewable energy generation growth strategy depends in part on federal, state and local government policies and incentives that support the development, financing, ownership, and operation of renewable energy generation projects, including investment tax credits, production tax credits, accelerated depreciation, renewable portfolio standards, feed-in-tariffs and similar programs, renewable energy credit mechanisms, and tax exemptions. If these policies and incentives are changed or eliminated, or AES is unable to use them, there could be a material adverse impact on AES’ U.S. renewable growth opportunities, including fewer future PPAs or lower prices in future PPAs, decreased revenues, reduced economic returns on certain project company investments, increased financing costs, and/or difficulty obtaining financing.

In addition, the results of the U.S. Department of Commerce’s investigation into the antidumping and countervailing duties circumvention claim on solar cells and panels supplied from Malaysia, Vietnam, Thailand, and Cambodia are uncertain. If the investigation results in additional taxes, tariffs, duties, or other assessments on renewable energy or the equipment necessary to generate or deliver it, such as antidumping and countervailing duty rates, such developments could impede the realization of our U.S. renewables strategy by resulting in, among other items, lack of a satisfactory market for the development and/or financing of our U.S. renewable energy projects, abandoning the development of certain U.S. renewable energy projects, a loss of our investments in the projects, and/or reduced project returns.

Furthermore, production levels for our wind and solar projects may be dependent upon adequate wind or sunlight, resulting in volatility in production levels and profitability. For our wind projects, wind resource estimates are based on historical experience when available and on wind resource studies conducted by an independent engineer. These wind resource estimates are not expected to reflect actual wind energy production in any given year, but long-term averages of a resource.

As a result, these types of projects face considerable risk, including that favorable regulatory regimes expire or are adversely modified. At the development or acquisition stage, our ability to predict actual performance results may be hindered and the projects may not perform as predicted. There are also risks associated with the fact that some of these projects exist in markets where long-term fixed-price contracts for the major cost and revenue components may be unavailable, which in turn may result in these projects having relatively high levels of volatility. These projects can be capital-intensive and generally are designed with a view to obtaining third-party financing, which may be difficult to obtain. As a result, these capital constraints may reduce our ability to develop or obtain third-party financing for these projects.

Any of the above factors could have a material adverse effect on our business, financial condition, results of operations and prospects.

Cyber-attacks and data security breaches could harm our business.

Our business relies on electronic systems and network technologies to operate our generation, transmission and distribution infrastructure. We also use various financial, accounting, and other infrastructure systems. Our infrastructure may be targeted by nation states, hacktivists, criminals, insiders, or terrorist groups. In particular, there has been an increased focus on the U.S. energy grid believed to be related to the Russia/Ukraine conflict. Such an attack, by hacking, malware, or other means, may interrupt our operations, cause property damage, affect our ability to control our infrastructure assets, cause the release of sensitive customer information, or limit communications with third parties. Any loss or corruption of confidential or proprietary data through a breach may:

•impact our operations, revenue, strategic objectives, customer, and vendor relationships;

•expose us to legal claims and/or regulatory investigations and proceedings;

•require extensive repair and restoration costs for additional security measures to avert future attacks;

•impair our reputation and limit our competitiveness for future opportunities; and

•impact our financial and accounting systems and, subsequently, our ability to correctly record, process, and report financial information.

75 | The AES Corporation | September 30, 2022 Form 10-Q

We have implemented measures to help prevent unauthorized access to our systems and facilities, including certain measures to comply with mandatory regulatory reliability standards. To date, cyber-attacks have not had a material impact on our operations or financial results. We continue to assess potential threats and vulnerabilities and make investments to address them, including global monitoring of networks and systems, identifying and implementing new technology, improving user awareness through employee security training, and updating our security policies as well as those for third-party providers. We cannot guarantee the extent to which our security measures will prevent future cyber-attacks and security breaches or that our insurance coverage will adequately cover any losses we may experience. Further, we do not control certain of joint ventures or our equity method investments and cannot guarantee that their efforts will be effective.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Board has authorized the Company to repurchase stock through a variety of methods, including open market repurchases, purchases by contract (including, without limitation, accelerated stock repurchase programs or 10b5-1 plans), and/or privately negotiated transactions. There can be no assurances as to the amount, timing, or prices of repurchases, which may vary based on market conditions and other factors. The Program does not have an expiration date and can be modified or terminated by the Board of Directors at any time. As of September 30, 2022, $264 million remained available for repurchase under the Program. No repurchases were made by The AES Corporation of its common stock during the third quarter of 2022.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Item 1.01. Entry into a Material Definitive Agreement

On November 1, 2022, each member of the Company’s Board of Directors and each of its executive officers entered into an indemnification agreement (the “Indemnification Agreement”) with the Company. The Indemnification Agreement supplements the indemnification provisions contained in the Company’s Amended and Restated By-Laws and generally provides that the Company will indemnify the Indemnitee to the fullest extent permitted by the General Corporation Law of the State of Delaware and any other applicable laws, subject to certain exceptions, against expenses, damages, losses, liabilities, judgments, fines, penalties, and other amounts paid or incurred by the Indemnitee in connection with any threatened, asserted, pending, or completed claim, demand, action, suit or proceeding in which the Indemnitee is involved by reason of the Indemnitee’s service as a director or officer of the Company.

The foregoing description of the Indemnification Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Indemnification Agreement, the form of which is filed as Exhibit 10.30 hereto and is incorporated herein by reference.

76 | The AES Corporation | September 30, 2022 Form 10-Q

ITEM 6. EXHIBITS

10.30	Form of Director and Officer Indemnification Agreement, (filed herewith).
10.31	Amendment No. 1 to the Credit Agreement dated as of August 23, 2022 among The AES Corporation, a Delaware corporation, the lenders listed on the signature pages thereof, and Citibank, N.A., as Administrative Agent, (filed herewith).
10.32	Term Loan Agreement dated as of September 30, 2022 among The AES Corporation as Borrower, the banks named herein as Banks, and Sumitomo Mitsui Banking Corporation as Administrative Agent, (filed herewith).
21.1	Subsidiaries of The AES Corporation (filed herewith).
31.1	Rule13a-14(a)/15d-14(a) Certification of Andrés Gluski (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Stephen Coughlin (filed herewith).
32.1	Section 1350 Certification of Andrés Gluski (filed herewith).
32.2	Section 1350 Certification of Stephen Coughlin (filed herewith).
101	The AES Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL (Inline Extensible Business Reporting Language): (i) the Cover Page, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Operations, (iv) Condensed Consolidated Statements of Comprehensive Income (Loss), (v) Condensed Consolidated Statements of Changes in Equity, (vi) Condensed Consolidated Statements of Cash Flows, and (vii) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

77 | The AES Corporation | September 30, 2022 Form 10-Q

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE AES CORPORATION (Registrant)
Date:	November 3, 2022	By:	/s/ STEPHEN COUGHLIN
			Name:	Stephen Coughlin
			Title:	Executive Vice President and Chief Financial Officer (Principal Financial Officer)
		By:	/s/ SHERRY L. KOHAN
			Name:	Sherry L. Kohan
			Title:	Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

EX-10.30

FORM OF

DIRECTOR AND OFFICE INDEMNIFICATION AGREEMENT

This Director and Officer Indemnification Agreement (this “Agreement”) is between The AES Corporation, a Delaware corporation (the “Company”), and the individual identified as the indemnitee on the signature page hereto (“Indemnitee”).

RECITALS:

A.Indemnitee is a director or officer of the Company and his or her willingness to continue to serve in such capacity is predicated, in substantial part, upon the Company’s willingness to indemnify him or her to the fullest extent permitted or required by the laws of the State of Delaware and any other applicable laws, and the other undertakings herein.

B.Therefore, in order to procure Indemnitee’s service or continued service as a director or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”), any change in the composition of the Company’s Board of Directors (the “Board”) or any change in control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of and the advancement of Expenses (as defined below) to Indemnitee as set forth in this Agreement and for the coverage or continued coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

1.Certain Definitions. In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement with initial capital letters:

a.“Claim” means (i) any threatened, asserted, pending or completed claim, demand, action, suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law and (ii) any threatened, pending or completed inquiry or investigation, whether made, instituted or conducted by or at the behest of the Company or any other person, including any federal, state or other court or governmental entity or agency and any committee or other representative of any corporate constituency, that Indemnitee determines might be reasonably expected to lead to the institution of any such claim, demand, action, suit or proceeding.

b.“Controlled Affiliate” means any corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or indirectly controlled by the Company. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity or enterprise, whether through the ownership of voting securities, through other voting rights, by contract or otherwise; provided that direct or indirect beneficial ownership of capital stock or other interests in an entity or enterprise entitling the holder to cast 20% or more of the total number of votes generally entitled to be cast in the election of directors (or persons performing comparable functions) of such entity or enterprise will be deemed to constitute control for purposes of this definition.

c.“Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee.

d.“ERISA Losses” means any taxes, penalties or other liabilities under the Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the Internal Revenue Code of 1986, as amended.

e.“Expenses” means attorneys’ and experts’ fees, retainers, and expenses, and all other costs and expenses paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in (including on appeal), any Claim, other than the fees, expenses and costs in respect of which the Company is expressly stated in Section 15 to have no obligation.

f.“Incumbent Directors” means the individuals who, as of the date hereof, are members of the Board and any individual becoming a member of the Board subsequent to the date hereof whose election, nomination for election by the Company’s stockholders, or appointment, was approved by a vote of a majority of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination); provided, however, that an individual will not be an Incumbent Director if such individual’s election or appointment to the Board occurs as a result of an actual or threatened election contest (as described in Rule 14a-12(c) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents (including through the use of proxy access procedures set forth in the Constituent Documents, if any) by or on behalf of a person other than the Board.

g.“Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a director, officer, employee or agent of the Company or as a director, officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise, whether or not for profit (including any employee benefit plan or related trust), as to which Indemnitee is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in respect of any business, transaction, communication, filing, disclosure or other activity of the Company or any other entity or enterprise referred to in clause (i) of this sentence, or (iii) Indemnitee’s status as a current or former director, officer, employee or agent of the Company or as a current or former director, officer, employee, member, manager, trustee or agent of the Company or any other entity or enterprise referred to in clause (i) of this sentence or any actual, alleged or suspected act or failure to act by Indemnitee in connection with any obligation or restriction imposed upon Indemnitee by reason of such status; provided, however, that except for compulsory counterclaims, Indemnifiable Claim will not include any Claim (A) initiated by Indemnitee against the Company or any director or officer of the Company unless (1) the Incumbent Directors consented to or approved the initiation of such Claim prior to its initiation, (2) the Incumbent Directors authorize the Company to join in such Claim, or (3) such Claim is initiated solely to enforce Indemnitee’s rights under this Agreement, (B) in which final judgement is rendered against Indemnitee or in which Indemnitee enters into a settlement, in each case for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Exchange Act, and (C) in an action by the Company approved by a majority of the Incumbent Directors prior to a change in control (as that term is defined in the equity incentive plan in effect as of the time of execution of this Agreement) to recover all or any portion of an incentive award made by the Company or the proceeds thereof or of any severance payment, in any such case under (1) any clawback policy in effect while Indemnitee served as a director or officer of the Company, (2) Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company, or (3) claim of unjust enrichment. In addition to any service at the actual request of the Company, for purposes of this Agreement, Indemnitee will be deemed to be serving or to have served at the request of the Company as a director, officer, employee, member, manager, trustee or agent of another entity or enterprise if Indemnitee is or was serving as a director, officer, employee, member, manager, trustee or agent of such entity or enterprise and (i) such entity or enterprise is or at the time of such service was a Controlled Affiliate, (ii) such entity or enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or a Controlled Affiliate, or (iii) the Company or a Controlled Affiliate directly or indirectly caused or authorized Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity.

h.“Indemnifiable Losses”means any and all Losses relating to, arising out of or resulting from any Indemnifiable Claim.

i.“Independent Counsel” means any law firm that is experienced in matters of corporation law and neither presently is, nor in the past three years has been, retained to represent (i) Indemnitee or the Company in any matter material to Indemnitee (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification

agreements) or (ii) any other named (or, as to a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder.

j.“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA Losses and amounts paid in settlement, including all interest, assessments and other charges paid or payable in connection with or in respect of any of the foregoing.

k.“Subsidiary” means an entity in which the Company directly or indirectly beneficially owns more than 50% of the outstanding Voting Stock.

l.“Voting Stock” means securities entitled to vote generally in the election of directors (or similar governing bodies).

2.Indemnification Obligation. Subject to Section 8, the Company will indemnify and hold harmless Indemnitee, to the fullest extent permitted or required by the laws of the State of Delaware and any other applicable laws, in each case, in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required indemnification, against any and all Indemnifiable Claims and Indemnifiable Losses; provided, however, that no repeal or amendment of any law of the State of Delaware will in any way diminish or adversely affect the rights of Indemnitee pursuant to this Agreement in respect of any occurrence or matter arising prior to any such repeal or amendment.

3.Advancement of Expenses. Indemnitee will have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim of any and all Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or which Indemnitee determines are reasonably likely to be paid or incurred by Indemnitee. Indemnitee’s right to such advancement is not subject to the satisfaction of any standard of conduct and is not conditioned upon any prior determination that Indemnitee is entitled to indemnification under this Agreement with respect to the Indemnifiable Claim or the absence of any prior determination to the contrary. Without limiting the generality or effect of the foregoing, within 20 days after any request by Indemnitee, the Company will, in accordance with such request (but without duplication), (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses; provided that Indemnitee will repay, without interest any amounts actually advanced to Indemnitee that, at the final disposition of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable by Indemnitee in respect of Expenses relating to, arising out of or resulting from such Indemnifiable Claim. In connection with any such payment, advancement or reimbursement, Indemnitee will execute and deliver to the Company an undertaking in substantially the form attached hereto as Exhibit A (subject to Indemnitee filling in the blanks therein and selecting from among the bracketed alternatives therein), which need not be secured and will be accepted by the Company without reference to Indemnitee’s ability to repay the Expenses. In no event will Indemnitee’s right to the payment, advancement or reimbursement of Expenses pursuant to this Section 3 be conditioned upon any undertaking that is less favorable to Indemnitee than, or that is in addition to, the undertaking set forth in Exhibit A.

4.Indemnification for Additional Expenses. Without limiting the generality or effect of the foregoing, the Company will indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, will reimburse Indemnitee for, or advance to Indemnitee, within 20 days of such request, any and all Expenses paid or incurred by Indemnitee or which Indemnitee determines are reasonably likely to be paid or incurred by Indemnitee in connection with any Claim made, instituted or conducted by Indemnitee, in each case to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required indemnification, reimbursement or advancement of such Expenses, for (a) indemnification or payment, advancement or reimbursement of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims, or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company; provided, however, that Indemnitee will return, without interest, any such advance of Expenses (or portion thereof) which remains unspent at the final disposition of the Claim to which the advance related.

5.Contribution. To the fullest extent permissible under applicable law in effect on the date hereof or as such law may from time to time hereafter be amended to increase the scope of permitted or required indemnification, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the payment of any and all Indemnifiable Claims or Indemnifiable Losses, in such proportion as is fair and reasonable in light of all of the circumstances in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Indemnifiable Claim or Indemnifiable Loss or (b) the relative fault of the Company (and its other directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s); provided that such contribution will not be required where it is determined, pursuant to a final disposition of such Indemnifiable Claim or Indemnifiable Loss in accordance with Section 8 or pursuant to the last sentence of Section 9(a), that Indemnitee is not entitled to indemnification by the Company with respect to such Indemnifiable Claim or Indemnifiable Loss. The Company will indemnify and hold harmless Indemnitee from any claim of contribution that may be brought by directors, officers, employees or other agents or representatives of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

6.Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss, but not for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

7.Procedure for Notification. To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee must submit to the Company a written request therefor, including therein or therewith (i) a brief description (based upon information then available to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss and (ii) such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. If, at the time of the receipt of such request, the Company has directors’ and officers’ liability insurance in effect under which coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company will give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the applicable insurers in accordance with the procedures set forth in the applicable policies. The Company will provide to Indemnitee a copy of such notice delivered to the applicable insurers, and copies of subsequent correspondence between the Company and such insurers regarding the Indemnifiable Claim or Indemnifiable Loss, in each case substantially concurrently with the delivery or receipt thereof by the Company. If requested by Indemnitee, the Company will use its reasonable efforts, at the Company’s expense, to enforce on behalf of and for the benefit of Indemnitee all rights (including rights to receive payment) that may exist under the applicable policies of insurance in relation to such Indemnifiable Claim or Indemnifiable Loss. The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss will not relieve the Company from any liability hereunder unless, and only to the extent that, the Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and such failure results in forfeiture by the Company of substantial defenses, rights or insurance coverage.

8.Determination of Right to Indemnification.

a.To the extent that (i) Indemnitee has been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, including dismissal without prejudice or (ii) Indemnitee’s involvement in an Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein is to prepare and serve as a witness, and not as a party, Indemnitee will be indemnified against Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 8(b)) will be required with respect to such Indemnifiable Claim.

b.To the extent that the provisions of Section 8(a) are inapplicable to an Indemnifiable Claim that has been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct Determination”) will be made as follows: (i) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (ii) if such Disinterested Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a majority vote of all Disinterested Directors, even if less than a quorum of the Board, or (iii) if there are no such Disinterested Directors or if Indemnitee so

requests, by Independent Counsel, selected by Indemnitee and approved by the Board (such approval not to be unreasonably withheld, delayed or conditioned), in a written opinion addressed to the Board, a copy of which will be delivered to Indemnitee; provided, however, that if at the time of any Standard of Conduct Determination Indemnitee is neither a director nor an officer of the Company, such Standard of Conduct Determination may be made by or in the manner specified by the Board, any duly authorized committee of the Board or any duly authorized officer of the Company (unless Indemnitee requests that such Standard of Conduct Determination be made by Independent Counsel (selected by Indemnitee and approved by the Board (such approval not to be unreasonably withheld, delayed or conditioned)), in which case such Standard of Conduct Determination will be made by Independent Counsel). Indemnitee will cooperate with the person or persons making such Standard of Conduct Determination, including providing to such person or persons, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. The Company will indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, will reimburse Indemnitee for, or advance to Indemnitee, within 20 days of such request, any and all costs and expenses (including attorneys’ and experts’ fees and expenses) incurred by Indemnitee in so cooperating with the person or persons making such Standard of Conduct Determination.

c.The Company will use reasonable efforts to cause any Standard of Conduct Determination required under Section 8(b) to be made as promptly as practicable. If (i) the person or persons empowered or selected under Section 8(b) to make the Standard of Conduct Determination have not made a determination within 30 days after the later of (A) receipt by the Company of written notice from Indemnitee advising the Company of the final disposition of the applicable Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, and (ii) Indemnitee has fulfilled his or her obligations set forth in the second sentence of Section 8(b), then Indemnitee will be deemed to have satisfied the applicable standard of conduct; provided that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or persons making such determination in good faith requires such additional time for obtaining or evaluating any documentation or information relating thereto.

d.If (i) Indemnitee is entitled to indemnification hereunder against any Indemnifiable Losses pursuant to Section 8(a), (ii) no determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been determined or deemed pursuant to Sections8(b) or 8(c) to have satisfied any applicable standard of conduct under Delaware law which is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, then the Company will pay to Indemnitee, within 20 days after the later of (A) the Notification Date in respect of the Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (B) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above has been satisfied, an amount equal to the amount of such Indemnifiable Losses.

9.Presumption of Entitlement.

a.In making a determination of whether Indemnitee has been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, the Company acknowledges that a resolution, disposition or outcome short of dismissal or final judgment, including outcomes that permit Indemnitee to avoid expense, delay, embarrassment, injury to reputation, distraction, disruption or uncertainty, may constitute such success. In the event that any Indemnifiable Claim or any portion thereof or issue or matter therein is resolved or disposed of in any manner other than by adverse judgment against Indemnitee (including any resolution or disposition thereof by means of settlement with or without payment of money or other consideration), it will be presumed that Indemnitee has been successful on the merits or otherwise in defense of such Indemnifiable Claim or portion thereof or issue or matter therein. The Company may overcome such presumption only by providing clear and convincing evidence to the contrary.

b.In making any Standard of Conduct Determination, the person or persons making such determination must presume that Indemnitee has satisfied the applicable standard of conduct, and the Company may overcome such presumption only by its adducing clear and convincing evidence to the contrary. The knowledge and/or action, or failure to act, of any other director, officer, employee, agent or representative of the Company will not be imputed to Indemnitee for purposes of any Standard of Conduct Determination. Any Standard of Conduct Determination that Indemnitee has satisfied the applicable standard of conduct will be final and binding in all respects, including with respect to any litigation or other action or proceeding initiated by Indemnitee to enforce his or her rights hereunder. Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by Indemnitee in the Court of Chancery of the State of Delaware. No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct will be a defense to any Claim by Indemnitee for indemnification or reimbursement or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.

c.Without limiting the generality or effect of Section 9(b), (i) to the extent that any Indemnifiable Claim relates to any entity or enterprise (other than the Company) referred to in clause (i) of the first sentence of the definition of “Indemnifiable Claim,” Indemnitee will be deemed to have satisfied the applicable standard of conduct if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the interests of such entity or enterprise (or the owners or beneficiaries thereof, including in the case of any employee benefit plan the participants and beneficiaries thereof) and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful and (ii) in all cases, any belief of Indemnitee that is based on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Company in the course of their duties, or on the advice of legal counsel for the Company, the Board, any committee of the Board or any director, or on information or records given or reports made to the Company, the Board, any committee of the Board or any director by an independent certified public accountant or by an appraiser or other expert selected by or on behalf of the Company, the Board, any committee of the Board or any director will be deemed to be reasonable.

10.No Adverse Presumption. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

11.Non‑Exclusivity. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have against the Company under the Constituent Documents, the laws of the State of Delaware, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder, providedfurther, however, that Indemnitee will not be entitled to indemnity under Other Indemnitee Provisions (other than third-party insurance) in respect of any claim that does not constitute an “Indemnifiable Claim” hereunder. The Company will not adopt any amendment to any of the Constituent Documents the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this Agreement or any Other Indemnity Provision.

12.Liability Insurance and Funding. For the duration of Indemnitee’s service as a director and/or officer of the Company, and thereafter for so long as Indemnitee is subject to any pending or possible Indemnifiable Claim, the Company will use its reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained in effect policies of directors’ and officers’ liability insurance providing coverage for directors and/or officers of the Company that is at least substantially comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’ liability insurance. Without limiting the generality or effect of the immediately preceding sentence, the Company will not discontinue or significantly reduce the scope or amount of coverage from one policy period to the next (i) without the prior approval thereof by a majority vote of the Incumbent Directors, even if less than a quorum, or (ii) if at the time that any such discontinuation or

significant reduction in the scope or amount of coverage is proposed there are no Incumbent Directors, without the prior written consent of Indemnitee (which consent will not be unreasonably withheld, delayed or conditioned). In all policies of directors’ and officers’ liability insurance obtained by the Company, Indemnitee will be named as an insured or such policies will otherwise be created in such a manner as to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company’s directors and officers most favorably insured by such policy.

13.Subrogation. In the event of payment under this Agreement, the Company will be subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee against other persons or entities (other than Indemnitee’s successors), including any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(g). Indemnitee will execute all papers reasonably required to evidence such rights (all of Indemnitee’s reasonable Expenses, including attorneys’ fees and charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the Company).

14.No Duplication of Payments. The Company will not be liable under this Agreement to make any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has otherwise actually received and is entitled to retain payment (net of any Expenses incurred in connection therewith and any repayment by Indemnitee made with respect thereto) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise (including from any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(g)) in respect of such Indemnifiable Losses otherwise indemnifiable hereunder.

15.Defense of Claims. Except for any Indemnifiable Claim asserted by or in the right of the Company (as to which Indemnitee will be entitled to exclusively control the defense), the Company will be entitled to participate in the defense of any Indemnifiable Claim or to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee. The Company’s participation in the defense of any Indemnifiable Claim of which the Company has not assumed the defense will not in any manner affect the rights of Indemnitee under this Agreement, including Indemnitee’s right to control the defense of such Indemnifiable Claims. With respect to the period (if any) commencing at the time at which the Company notifies Indemnitee that the Company has assumed the defense of any Indemnifiable Claim and continuing for so long as the Company is using its reasonable efforts to provide an effective defense of such Indemnifiable Claim, the Company will have the right to control the defense of such Indemnifiable Claim and will have no obligation under this Agreement in respect of any attorneys’ or experts’ fees or expenses or any other costs or expensespaid or incurred by Indemnitee in connection with defending such Indemnifiable Claim (other than such costs and expenses paid or incurred by Indemnitee in connection with any cooperation in the Company’s defense of such Indemnifiable Claim or other action undertaken by Indemnitee at the request of the Company or with the consent of the Company (which consent will not be unreasonably withheld, conditioned or delayed)); provided that if Indemnitee believes, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the Company and Indemnitee and Indemnitee will conclude that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the Company, or (c) any such representation by such counsel chosen by the Company would be precluded under the applicable standards of professional conduct then prevailing, then Indemnitee will be entitled to retain and use the services of separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim) at the Company’s expense. Nothing in this Agreement limits Indemnitee’s right to retain or use his or her own counsel at his or her own expense in connection with any Indemnifiable Claim; provided that in all events Indemnitee will not unreasonably interfere with the conduct of the defense by the Company of any Indemnifiable Claim that the Company will have assumed and of which the Company is using its reasonable efforts to provide an effective defense. The Company will not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company’s prior written consent. The Company will not, without the prior written consent of Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim to which Indemnitee is, or could have been, a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of Indemnitee from all liability on any claims that are the subject matter of such Indemnifiable Claim. Neither the Company nor Indemnitee will unreasonably withhold, condition or delay its consent to any proposed settlement; provided that Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of Indemnitee.

1.Successors and Binding Agreement.

a.The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including any person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the “Company” for purposes of this Agreement), but will not otherwise be assignable or delegable by the Company.

b.This Agreement will inure to the benefit of and be enforceable by Indemnitee’s personal or legal representatives, executors, administrators, heirs, distributees, legatees and other successors.

c.This Agreement is personal in nature and neither of the parties hereto may, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections16(a) and 16(b). Without limiting the generality or effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted assignment or transfer contrary to this Section 16(c), the Company will have no liability to pay any amount so attempted to be assigned or transferred.

2.Notices. For all purposes of this Agreement, all communications, including notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile or email transmission, or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid or one business day after having been sent for next‑day delivery by a nationally recognized overnight courier service, addressed to the Company (to the attention of the Corporate Secretary of the Company) at its headquarters and to Indemnitee at the applicable address shown on the signature page hereto, or to such other address as any party hereto may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt.

3.Governing Law. The validity, interpretation, construction and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such State. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement will be brought only in the Chancery Court of the State of Delaware.

4.Validity. If any provision of this Agreement or the application of any provision hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstance will not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal. In the event that any court or other adjudicative body will decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the immediately preceding sentence, the parties thereto will take all such action as may be necessary or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.

5.Amendments. No supplement, modification or amendment of this Agreement will be binding unless executed in writing by Indemnitee and the Company. No provision of this Agreement may be waived or discharged unless such waiver or discharge is agreed to in writing signed by Indemnitee and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of

similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party hereto that are not set forth expressly in this Agreement.

6.Legal Fees and Expenses; Interest. (a) It is the intent of the Company that Indemnitee not be required to incur legal fees and/or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder. Accordingly, without limiting the generality or effect of any other provision hereof, if it should appear to Indemnitee that the Company has failed to comply with any of its obligations under this Agreement (including its obligations under Section 3) or in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, the Company irrevocably authorizes Indemnitee from time to time to retain counsel of Indemnitee’s choice, at the expense of the Company as hereafter provided, to advise and represent Indemnitee in connection with any such interpretation, enforcement or defense, including the initiation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the Company, in any jurisdiction. Notwithstanding any existing or prior attorney-client relationship between the Company and such counsel, the Company irrevocably consents to Indemnitee’s entering into an attorney-client relationship with such counsel, and in that connection the Company and Indemnitee agree that a confidential relationship will exist between Indemnitee and such counsel. The Company will pay and be solely financially responsible for any and all reasonable attorneys’ and related fees and expenses incurred by Indemnitee in connection with any of the foregoing to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required payment of such fees and expenses.

a.Any amount due to Indemnitee under this Agreement that is not paid by the Company by the date on which it is due will accrue interest at the maximum legal rate under Delaware law from the date on which such amount is due to the date on which such amount is paid to Indemnitee.

7.Certain Interpretive Matters. Unless the context of this Agreement otherwise requires, (a) “it” or “its” or words of any gender include each other gender, (b) words using the singular or plural number also include the plural or singular number, respectively, (c) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (d) the terms “Section” or “Exhibit” refer to the specified Section or Exhibit of or to this Agreement, (e) the terms “include,” “includes” and “including” will be deemed to be followed by the words “without limitation” (whether or not so expressed), and (f) the word “or” is disjunctive but not exclusive. Whenever this Agreement refers to a number of days, such number will refer to calendar days unless business days are specified and whenever action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a certain period of time or by a particular date that ends or occurs on a non-business day, then such period or date will be extended until the immediately following business day. As used herein, “business day” means any day other than Saturday, Sunday or a United States federal holiday.

8.Counterparts. This Agreement may be executed in counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same agreement.

[Signatures Appear on Following Page]

IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized representative to execute this Agreement as of the date written below.

[THE AES CORPORATION]
By:
	Name:
	Title:

[INDEMNITEE NAME] [Address]
By:
	Name:
	Date:

EXHIBIT A

UNDERTAKING

This Undertaking is submitted pursuant to the Director and Officer Indemnification Agreement (the “Indemnification Agreement”), between The AES Corporation, a Delaware corporation (the “Company”), and the undersigned. Capitalized terms used and not otherwise defined herein have the meanings ascribed to such terms in the Indemnification Agreement.

The undersigned hereby requests [payment], [advancement], [reimbursement] by the Company of Expenses which the undersigned [has incurred][reasonably expects to incur] in connection with ______________________ (the “Indemnifiable Claim”).

The undersigned hereby undertakes to repay the [payment], [advancement], [reimbursement] of Expenses made by the Company to or on behalf of the undersigned in response to the foregoing request to the extent it is determined, following the final disposition of the Indemnifiable Claim and in accordance with Section 8 or pursuant to the last sentence of Section 9(a) of the Indemnification Agreement, that the undersigned is not entitled to indemnification by the Company under the Indemnification Agreement with respect to the Indemnifiable Claim.

IN WITNESS WHEREOF, the undersigned has executed this Undertaking as of [date].

[Indemnitee]

EX-10.31

EXECUTION COPY

AMENDMENT NO. 1 TO THE CREDIT AGREEMENT

Dated as of August 23, 2022

AMENDMENT NO. 1 TO THE CREDIT AGREEMENT (this “Amendment”) among THE AES CORPORATION, a Delaware corporation (the “Borrower”), the banks, financial institutions and other institutional lenders parties to the Credit Agreement referred to below (collectively, the “Lenders”) and CITIBANK, N.A., as administrative agent (the “Administrative Agent”) for the Lenders.

PRELIMINARY STATEMENTS:

(1) The Borrower, the Lenders and the Administrative Agent are parties to that certain Eighth Amended and Restated Credit Agreement dated as of September 24, 2021 (the “Credit Agreement”). Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Credit Agreement.

(2) Pursuant to Section 2.05(c) of the Credit Agreement, the Borrower has requested that the aggregate amount of the Commitments be increased from $1,250,000,000 to $1,500,000,000.

(3) Pursuant to Section 2.18 of the Credit Agreement, the Borrower has requested that the Termination Date (pursuant to clause (i) of the definition thereof) be extended from September 24, 2026 to August 23, 2027.

(4) The Borrower has requested certain amendments to the Credit Agreement, and the parties hereto agree to such amendments as set forth in, and in accordance with the terms and conditions of, this Amendment (the Credit Agreement as so amended, the “Amended Credit Agreement”).

A.Consent to Extension Request. Each Lender so indicating on its signature page to this Amendment agrees to extend the Termination Date (pursuant to clause (i) of the definition thereof) to August 23, 2027 (each such Lender, an “Extending Lender”). This agreement to extend the Termination Date is subject in all respects to the terms of the Credit Agreement, other than the provisions of Section 2.18 of the Credit Agreement that require that the requested extension be for a period of one year or that specify the date by which the Borrower must submit an extension request, the date by which Extending Lenders submit responses or the date by which the Administrative Agent must notify the Borrower of each Lender’s determination, which provisions are hereby waived. For the avoidance of doubt, upon satisfaction (or waiver) of the applicable conditions set forth in Section 4 below, the extension of the Termination Date of each Extending Lender shall be effective on August 23, 2022. After giving effect to the extension of the Termination Date hereby, the Borrower may exercise its right to request an extension of the Termination Date under Section 2.18 of the Amended Credit Agreement on up to two more occasions during the term of the Amended Credit Agreement.

Amendments to Credit Agreement. As of the Amendment Effective Date (as defined below), subject to the satisfaction of the conditions precedent set forth in Section 5 below, the Lenders and the Borrower hereby agree to amend the Credit Agreement to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Amended Credit Agreement attached as Annex A hereto.

A.Breakage Waiver. Upon execution and delivery of this Amendment by the Required Lenders, the Lenders hereby waive any losses, costs or expenses payable pursuant to Section 8.04(b) of the Credit Agreement as a result of any prepayment occurring pursuant to Section 2.05(c)(iii) of the Credit Agreement in respect of Borrowings prepaid as a condition to the effectiveness of the Commitment Increase effected on the Amendment Effective Date.

Conditions of Effectiveness of Section 1. Section 1 of this Amendment shall become effective on and as of the date (the “Extension Date”) on which each of the following conditions precedent shall have been satisfied or waived:

i.The Administrative Agent shall have received counterparts of this Amendment executed by the Borrower and each of the Extending Lenders;

The total of the Commitments of the Lenders that have agreed so to extend their Termination Date shall be more than 50% of the aggregate amount of the Commitments in effect immediately prior to the date hereof;

i.The Administrative Agent have received the following, each dated as of the Extension Date and in form and substance satisfactory to the Administrative Agent:

(i) a certificate of a duly authorized officer of the Borrower to the effect that as of the Extension Date (1) no event has occurred and is continuing, or would result from the extension of the Termination Date, that constitutes an Event of Default or would, with the giving of notice or the lapse of time, or both, constitute an Event of Default and (2) the representations and warranties contained in Section 4.01 of the Credit Agreement are correct in all material respects (without duplication of materiality qualifications otherwise set forth in such representations and warranties) on and as of the Extension Date, before and after giving effect to such extension, as though made on and as of such date, except for those made specifically as of another date, in which case such representations and warranties shall be true and correct as of such other date; provided that the representations and warranties contained in Sections 4.01(e) and 4.01(f) of the Credit Agreement shall be deemed to refer to the most recent financial statements delivered pursuant to Section 5.01(c)(i) and (ii) of the Credit Agreement,

(ii) certified copies of the resolutions of the Board of Directors of the Borrower authorizing such extension and the performance of the Credit Agreement on and after the Extension Date, and of all documents evidencing other necessary organizational action and governmental and regulatory approvals with respect to the Credit Agreement and such extension of the Termination Date, and

(iii) an opinion of the counsel of the Borrower, as to such matters related to the foregoing as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request; and

i.The Borrower shall have paid all accrued and invoiced fees and expenses of the Administrative Agent and the Lenders associated with this Amendment and the extension of Commitments (including the accrued and invoiced fees and expenses of Shearman & Sterling LLP, counsel to the Administrative Agent).

B.Conditions of Effectiveness of Section 2. Section 2 of this Amendment (including the Commitment Increase reflected in Schedule I of the Amended Credit Agreement) shall become effective on and as of the date (the “Amendment Effective Date”) on which each of the following conditions precedent shall have been satisfied or waived:

(a) The Administrative Agent shall have received counterparts of this Amendment executed by the Borrower, each of the Lenders and the Administrative Agent.

(b) The Administrative Agent have received the following, each dated as of the Amendment Effective Date and in form and substance satisfactory to the Administrative Agent (it being understood that the delivery of such documents is without duplication of the documents required to be delivered as conditions precedent to the effectiveness of Section 1 of this Amendment to the extent that such documents are substantively responsive to the requirements below):

(i) a certificate (the statements contained in which shall be true) of a duly authorized officer of the Borrower stating that both before and after giving effect to the Amendment Effective Date and the Commitment Increase (1) no Event of Default or event that, with the giving of notice or passage of time or both, would be an Event of Default has occurred and is continuing or would result from the Amendment Effective Date and the Commitment Increase and (2) all representations and warranties made by the Borrower in the Credit Agreement are true and correct in all material respects (without duplication of materiality qualifications otherwise set forth in such representations and warranties) on and as of the date of such Commitment Increase, as though made on and as of such date, except for

those made specifically as of another date, in which case such representations and warranties are true and correct as of such other date,

(ii) certified copies of the resolutions of the Board of Directors of the Borrower authorizing the Commitment Increase and the performance of the Amended Credit Agreement, and of all documents evidencing other necessary organizational action and governmental and regulatory approvals with respect to the Credit Agreement and the Commitment Increase, and

(iii) an opinion of the counsel of the Borrower, as to such matters related to the foregoing as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request; and

(c) The Borrower shall have paid all accrued and invoiced fees and expenses of the Administrative Agent and the Lenders associated with this Amendment and the extension of Commitments (including the accrued and invoiced fees and expenses of Shearman & Sterling LLP, counsel to the Administrative Agent).

A.Reference to and Effect on the Loan Documents. (a) On and after the effectiveness of Section 2 of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in any other Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Amended Credit Agreement.

(b) The Credit Agreement and the other Loan Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under the Credit Agreement or any other Loan Document, nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document.

(d) This Amendment is subject to the provisions of Section 8.01 of the Credit Agreement is designated by the Borrower and the Majority Lenders to be a Loan Document.

A.Costs and Expenses. The Borrower agrees to pay on demand all costs and expenses incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification and amendment of this Amendment, including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent, in accordance with the terms of Section 8.04 of the Credit Agreement.

Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.

A.Governing Law. This Amendment and shall be governed by, and construed in accordance with, the law of the State of New York.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

THE AES CORPORATION, as Borrower

By:

Name:

Title:

CITIBANK, N.A., as Administrative Agent

By:

Name:

Title:

SIGNATURE PAGE

Consent to extension of Termination Date:

Name of Lender:

by

Name:

Title:

by[1]

Name:

Title:

Consent to amend the Credit Agreement as provided in Section 2 of the forgoing Amendment:

Name of Lender:

by

Name:

Title:

by

Name:

Title:

[1] For any Lender requiring a second signature line.

U.S. $1,500,000,000

EIGHTH AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of September 24, 2021

Among

THE AES CORPORATION

as Borrower

THE BANKS NAMED HEREIN

as Banks

CITIBANK, N.A.

as Administrative Agent and LC Issuing Bank

and

the other LC Issuing Banks from time to time parties hereto

CITIBANK, N.A.

MIZUHO BANK, LTD. and

SUMITOMO MITSUI BANKING CORPORATION

as Joint Lead Arrangers

MIZUHO BANK, LTD.

SUMITOMO MITSUI BANKING CORPORATION

BANCO SANTANDER, S.A., NEW YORK BRANCH

BANK OF AMERICA, N.A.

BARCLAYS BANK PLC

BNP PARIBAS

CREDIT SUISSE AG, NEW YORK BRANCH

GOLDMAN SACHS BANK USA

JPMORGAN CHASE BANK, N.A.

MORGAN STANLEY SENIOR FUNDING, INC. and

MUFG UNION BANK, N.A.

as Syndication Agents

TABLE OF CONTENTS

Page

Article I. DEFINITIONS AND ACCOUNTING TERMS. 6

SECTION 1.01 Certain Defined Terms. 6

SECTION 1.02. Computation of Time Periods. 36

SECTION 1.03. Accounting Terms and Principles. 36

SECTION 1.04. Statutory Divisions. 36

SECTION 1.05 Rates. 36

Article II. AMOUNTS AND TERMS OF THE EXTENSIONS OF CREDIT. 37

SECTION 2.01 The Commitments. 37

SECTION 2.02. Making the Advances. 38

SECTION 2.03. Letters of Credit. 39

SECTION 2.04. Fees. 45

SECTION 2.05. Adjustment of the Commitments. 46

SECTION 2.06 Repayment of Advances. 48

SECTION 2.07. Interest on Advances. 48

SECTION 2.08. [Reserved]. 49

SECTION 2.09. Interest Rate Determination. 49

SECTION 2.10. Conversion of Advances. 50

SECTION 2.11. Prepayments. 51

SECTION 2.12. Increased Costs. 51

SECTION 2.13. Illegality. 53

SECTION 2.14. Payments and Computations. 53

SECTION 2.15. Taxes. 54

SECTION 2.16. Sharing of Payments, Etc. 58

SECTION 2.17. Noteless Agreement; Evidence of Indebtedness. 59

SECTION 2.18 Extension of Termination Date. 60

SECTION 2.19 Defaulting Lenders. 62

SECTION 2.20. Benchmark Replacement Setting. 65

Article III. CONDITIONS OF EXTENSIONS OF CREDIT. 66

SECTION 3.01. Conditions Precedent to Effectiveness. 66

SECTION 3.02. Conditions Precedent to Each Extension of Credit. 67

Article IV. REPRESENTATIONS AND WARRANTIES. 68

SECTION 4.01. Representations and Warranties of the Borrower. 68

Article V. COVENANTS OF THE BORROWER. 71

SECTION 5.01. Affirmative Covenants. 71

SECTION 5.02. Negative Covenants. 74

Article VI. EVENTS OF DEFAULT AND REMEDIES. 76

SECTION 6.01. Events of Default. 76

SECTION 6.02. Remedies. 78

SECTION 6.03. Cash Collateral Account. 78

Article VII. THE AGENT. 79

SECTION 7.01. Authorization and Action. 79

SECTION 7.02. Administrative Agent’s Reliance, Etc. 79

SECTION 7.03. Citibank and Affiliates. 80

SECTION 7.04. Lender Credit Decision. 80

SECTION 7.05. Indemnification. 80

SECTION 7.06. Successor Administrative Agent. 81

SECTION 7.07. Appointment and Resignation of LC Issuing Banks. 82

SECTION 7.08. Trust Indenture Act. 83

SECTION 7.09. Erroneous Payments. 83

Article VIII. MISCELLANEOUS. 87

SECTION 8.01. Amendments, Etc. 87

SECTION 8.02. Notices, Etc. 88

SECTION 8.03. No Waiver; Remedies. 88

SECTION 8.04. Costs and Expenses; Indemnification. 88

SECTION 8.05. Right of Set-off. 90

SECTION 8.06. Binding Effect. 91

SECTION 8.07. Assignments and Participations. 91

SECTION 8.08. Governing Law. 97

SECTION 8.09. Consent to Jurisdiction; Waiver of Jury Trial. 97

SECTION 8.10 Execution in Counterparts. 98

SECTION 8.11. Electronic Communications. 98

SECTION 8.12. Severability. 100

SECTION 8.13 Headings. 100

SECTION 8.14. USA PATRIOT Act Notice. 100

SECTION 8.15. Confidentiality. 101

SECTION 8.16. Entire Agreement. 102

SECTION 8.17. No Fiduciary Duty. 102

SECTION 8.18. [reserved]. 102

SECTION 8.19. Amendment and Restatement of Existing Credit Agreement. 102

SECTION 8.20. Acknowledgment and Consent to Bail-In of Affected Financial Institutions. 103

SECTION 8.21. Certain ERISA Matters. 103

SECTION 8.22. Acknowledgement Regarding Any Supported QFCs. 105

SECTION 8.23. Interest Rate Limitation. 105

SECTION 8.24. Judgment Currency. 106

SCHEDULES

Schedule I -- Commitment Schedule

Schedule II - Fronting Commitment Schedule

Schedule III - Existing Letters of Credit

Schedule IV - Qualified Holding Companies

Schedule 5.02(a) – Existing Liens

EXHIBITS

Exhibit A-1 - Form of Notice of Borrowing

Exhibit A-2 - Form of Notice of Conversion

Exhibit A-3 - Form of Request for Issuance

Exhibit B - Form of Assignment and Assumption

Exhibit C-1 - Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-2 - Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-3 - Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-4 - Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Exhibit D - Form of LC Issuing Bank Agreement

EIGHTH AMENDED AND RESTATED CREDIT AGREEMENT

EIGHTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September 24, 2021, among THE AES CORPORATION, a Delaware corporation (the “Borrower”), the banks and other financial institutions (the “Banks”) listed on the signature pages hereof, Citibank, N.A. (“Citibank”), as administrative agent (the “Administrative Agent”) for the Lenders (as defined below) hereunder and as LC Issuing Bank (as defined below) and the other LC Issuing Banks parties hereto from time to time.

PRELIMINARY STATEMENTS

a.The Borrower has requested that the Lenders and the LC Issuing Banks agree, on the terms and conditions set forth herein, to amend and restate in its entirety the Seventh Amended and

Restated Credit and Reimbursement Agreement dated as of December 20, 2019, and as amended prior to the date hereof (the “Existing Credit Agreement”), among the Borrower, the lenders and letter-of-credit issuers party thereto and Citibank, as administrative agent.

a.The Lenders and the LC Issuing Banks have indicated their willingness to amend and restate the Existing Credit Agreement on the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

Article I. DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01 Certain Defined Terms.

As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

“Additional Commitment Lender” has the meaning specified in Section 2.18(d).

“Additional Lender” has the meaning specified in Section 2.05(c)(i).

“Adjusted Parent Operating Cash Flow” means, for any period, (i) Parent Operating Cash Flow for such period less (ii) the sum of the following expenses (determined without duplication), in each case to the extent paid by the Borrower during such period in cash and regardless of whether any such amount was accrued during such period:

(A) income tax expenses of the Borrower and its Subsidiaries (other than income tax expenses of Subsidiaries that are not organized under the laws of the United States or any State thereof); and

(B) corporate overhead expenses (including rental expense of the Borrower).

For purposes of determining Adjusted Parent Operating Cash Flow for any period, the contribution to Parent Operating Cash Flow for such period from any Subsidiary not organized under the law of the United States or any State thereof shall be reduced (but not below zero) in the amount of any Investment made in such Subsidiary during such period (for the purpose of permitting such Subsidiary to pay income taxes during such period) by the Borrower or any Qualified Holding Company having an interest in such Subsidiary.

“Adjusted Term SOFR” means, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus (b) 0.10% per annum; provided that if Adjusted Term SOFR as so determined shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.

“Administrative Agent” has the meaning specified in the preamble hereto.

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative Agent (with a copy to the Borrower) duly completed by such Lender.

“Advance” means an advance by a Lender to the Borrower as part of a Borrowing and refers to a Base Rate Advance, Green Base Rate Advance, SOFR Advance or Green SOFR Advance, each of which shall be a “Type” of Advance.

“AES Business” means a business owned, operated or managed (including on a joint basis with others), directly or indirectly, by the Borrower.

“AES Indenture” means that certain Indenture, dated as of May 27, 2020, among the Borrower, each Guarantor (as defined therein) and Deutsche Bank Trust Company Americas, as Trustee, as amended, modified, supplemented and in effect on the Restatement Effective Date.

“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person.

“Agent Parties” has the meaning specified in Section 8.11(c).

“Agent’s Account” means the account of the Administrative Agent designated from time to time in a written notice to the Lenders and the Borrower as the account to which the Lenders and the Borrower are to make payments under this Agreement.

“Agreement” means the Existing Credit Agreement, as amended and restated by this Eighth Amended and Restated Credit Agreement, as further amended, supplemented or modified from time to time.

“Alternative Currency” means (i) any lawful currency (other than Dollars) that is freely transferable and convertible into Dollars and (ii) with respect to any Letter of Credit issued by an LC Issuing Bank, any other lawful currency (other than Dollars) that such LC Issuing Bank agrees may be used as the designated currency of such Letter of Credit; provided that such LC Issuing Bank is able to provide, and continues to provide, to the Administrative Agent the information required pursuant to Section 2.03(k) with respect to such Letter of Credit and (iii) with respect to any Green Letter of Credit issued by an LC Issuing Bank, any other lawful currency (other than Dollars) that such LC Issuing Bank agrees may be used as the designated currency of such Green Letter of Credit; provided that such LC Issuing Bank is able to provide, and continues to provide, to the Administrative Agent the information required pursuant to Section 2.03(k) with respect to such Green Letter of Credit.

“Alternative Currency Letter of Credit” means any Letter of Credit or Green Letter of Credit having a stated amount denominated in an Alternative Currency.

“Amendment No. 1” means that certain Amendment No. 1 to the Credit Agreement, dated as of August 23, 2022, among the Borrower, the Lenders party thereto and the Administrative Agent.

“Amendment No. 1 Effective Date” means August 23, 2022.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery, money laundering or corruption including, without limitation, the U. S. Foreign Corrupt Practices Act.

“Applicable Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Lending Office” in its Administrative Questionnaire or in the Assignment and Assumption pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify in writing to the Borrower and the Administrative Agent.

“Applicable Margin” means, (i) for any Base Rate Advance, the Base Rate Margin interest rate per annum set forth below in the column identified by the applicable Senior Debt Rating Level, (ii) for any Green Base Rate Advance, the Green Base Rate Margin interest rate per annum set forth below in the column identified by the applicable Senior Debt Rating Level, (iii) for any SOFR Advance, the SOFR Margin interest rate per annum set forth below in the column identified by the applicable Senior Debt Rating Level or (iv) for any Green SOFR Advance, the Green SOFR Margin interest rate per annum set forth below in the column identified by the applicable Senior Debt Rating Level.

Senior Debt Rating Level	Level 1	Level 2	Level 3	Level 4	Level 5
Interest Rate Per Annum
SOFR Margin	1.250%	1.500%	1.750%	2.000%	2.500%
Green SOFR Margin	1.200%	1.450%	1.700%	1.950%	2.450%
Base Rate Margin	0.250%	0.500%	0.750%	1.000%	1.500%
Green Base Rate Margin	0.200%	0.450%	0.700%	0.950%	1.450%

Any change in the Applicable Margin will be effective as of the date on which S&P, Moody’s or Fitch, as the case may be, announces the applicable change in any rating that results in a change in the Senior Debt Rating Level.

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B hereto.

“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.20(d).

“Bail-in Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

“Bail-in Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

“Banks” has the meaning specified in the preamble hereto.

“Base Rate” means, for any period, an interest rate per annum at all times equal to the highest of:

i.the rate of interest announced publicly by Citibank in New York, New York, from time to time, as Citibank’s base rate;

i.1/2 of 1% per annumabove the Federal Funds Rate in effect from time to time; and

i.the rate of interest per annum equal to Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%.

“Base Rate Advance” means an Advance that bears interest as provided in Section 2.07(a).

“Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.20(a).

“Benchmark Replacement” means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero)

that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

(a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

(b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with

respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Start Date” means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

“Benchmark Unavailability Period” means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.20 and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.20.

“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan.”

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

“Borrower” has the meaning specified in the preamble hereto.

“Borrower Extension Notice Date” has the meaning specified in Section 2.18(a).

“Borrowing” means a borrowing consisting of simultaneous Advances of the same Type made by each of the Lenders pursuant to Section 2.01 or Converted pursuant to Section 2.09 or 2.10.

“Business Day” means a day of the year on which banks are not required or authorized to close in New York City.

“Cash Collateral Account” has the meaning specified in Section 6.03.

“Cash Collateralize” means, in respect of an obligation, provide and pledge (as a first priority perfected security interest) cash collateral in Dollars at a location and pursuant to documentation in form and substance satisfactory to the Administrative Agent and the LC Issuing Banks (and “Cash Collateralization” has a corresponding meaning).

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Body or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued.

“Charges” has the meaning specified in Section 8.23.

“Citibank” has the meaning specified in the preamble hereto.

“Code” means the Internal Revenue Code of 1986, as the same may be amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended or modified from time to time.

“Commitment” has the meaning specified in Section 2.01.

“Commitment Fee” has the meaning specified in Section 2.04(a).

“Commitment Increase” has the meaning specified in Section 2.05(c)(i).

“Common Equity” means the stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company member interests) that have ordinary voting power for the election of directors, managers or trustees (or other persons performing similar functions) of the issuer, as applicable, provided that Preferred Equity, even if it has such ordinary voting power, shall not be Common Equity.

“Communication” has the meaning specified in Section 8.11(a).

“Conforming Changes” means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 8.04(b) and other technical, administrative or operational matters) that the Administrative Agent decides, in consultation with the Borrower, may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides, in consultation with the Borrower, is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

“Consolidated Subsidiary” means, at any date with respect to any Person, any Subsidiary of such Person or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of such date.

“Convert,” “Conversion” and “Converted” each refers to a conversion of Advances of one Type into Advances of another Type or the selection of a new, or the renewal of the same, Interest Period for SOFR Advances or Green SOFR Advances pursuant to Section 2.09 or 2.10.

“Covered Entity” shall mean any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Covered Party” has the meaning specified in Section 8.22.

“Covered Transaction” means a Stock Disposition by a Subsidiary or the incurrence of Debt.

“Credit Parties” means the Administrative Agent, the LC Issuing Banks and the Lenders.

“Debt” of any Person means (without duplication) all liabilities, obligations and indebtedness (whether contingent or otherwise) of such Person (i) for borrowed money or evidenced by bonds,

debentures, notes, or other similar instruments, (ii) to pay the deferred purchase price of property or services (other than such obligations incurred in the ordinary course of business on customary trade terms, provided that such obligations are not more than 30 days past due), (iii) as lessee under leases which shall have been or should be, in accordance with GAAP, recorded as capital leases, (iv) under reimbursement agreements or similar agreements with respect to the issuance of letters of credit (other than obligations in respect of letters of credit opened to provide for the payment of goods or services purchased in the ordinary course of business), and (v) under any Guaranty Obligations. For the avoidance of doubt, Qualified Equity-Linked or Hybrid Securities shall not be considered Debt for any purpose of this Agreement.

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“Defaulting Lender” means at any time, subject to Section 2.19(f), (i) any Lender that has failed, for two or more Business Days from the date required to be funded or paid, to (A) fund any portion of its Advances, (B) fund any portion of its participations in Letters of Credit or (C) pay over to any Credit Party any other amount required to be paid by it hereunder (each, a “funding obligation”), unless, in the case of clause (A) above, such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding has not been satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (ii) any Lender that has notified the Administrative Agent, the Borrower or any LC Issuing Bank in writing, or has stated publicly, that it does not intend or expect to comply with any of its funding obligations under this Agreement unless such writing or statement states that such position is based on such Lender’s determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (iii) any Lender that has defaulted generally on its funding obligations under other loan agreements, credit agreements and other similar agreements, (iv) any Lender that has, for three or more Business Days after written request by the Administrative Agent, the Borrower or any LC Issuing Bank, failed to confirm in writing to the Administrative Agent, the Borrower and such LC Issuing Bank that it will comply with its prospective funding obligations hereunder (provided that such Lender will cease to be a Defaulting Lender pursuant to this clause (iv) upon the Administrative Agent’s, the Borrower’s and such LC Issuing Bank’s receipt of such written confirmation), (v) any Lender with respect to which a Lender Insolvency Event has occurred and is continuing with respect to such Lender or its Lender Parent (provided, in each case of the foregoing clauses, that neither the reallocation of funding obligations provided for in Section 2.19(b) hereof as a result of a Lender’s being a Defaulting Lender nor the performance by Non-Defaulting Lenders of such reallocated funding obligations will by themselves cause the relevant Defaulting Lender to become a Non-Defaulting Lender) or (vi) any Lender that becomes the subject of any Bail-In Action. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any of clauses (i) through (vi) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.19(f) hereof) upon notification of such determination by the Administrative Agent to the Borrower, the LC Issuing Banks and the Lenders.

“Derivative Obligations” of any Person means all obligations of such Person in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, credit derivative transaction, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross‑currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of the foregoing transactions) or any combination of the foregoing transactions; provided that Derivative Obligations shall not include any obligations of such Person in relation to an equity forward contract, equity or equity index swap or equity or equity index option pertaining, linked or indexed to the common stock of such Person or any Affiliate thereof. For purposes of determining the aggregate amount of Derivative Obligations on any date, the Derivative Obligations of the applicable Person in respect of any Hedge Agreement shall be the maximum aggregate amount (after giving effect to any netting agreements to the extent such netting agreements are with the same Person to whom any such Derivative Obligations are owed or with Affiliates of such Person) that the applicable Person would be required to pay if such Hedge Agreement were terminated at such time.

“Disclosure Documents” means the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 and Current Reports on Form 8-K filed in 2022 prior to the Amendment No. 1 Effective Date.

“Dollars” or “$” means United States dollars.

“Dollar Equivalent” means, on any date of determination with respect to any Alternative Currency Letter of Credit, in calculating the maximum aggregate amount available to be drawn under such Alternative Currency Letter of Credit at any time on or after such date, the amount thereof in Dollars most recently reported to the Administrative Agent pursuant to Section 2.03(k) in calculating the amount of any drawing under any Letter of Credit, Green Letter of Credit or Alternative Currency Letter of Credit, the aggregate amount of Dollars paid by the relevant LC Issuing Bank to purchase the Alternative Currency paid by such LC Issuing Bank in respect of such drawing under such Alternative Currency Letter of Credit.

“EDGAR” means the “Electronic Data Gathering, Analysis and Retrieval” system (or any successor system thereof) maintained by the SEC.

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 8.07(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 8.07(b)(iii)).

“Eligible Securitization Bonds” means securities, however denominated, that are issued by any direct or indirect Subsidiary of the Borrower or any other Person under which recourse is limited to assets that are primarily rights to collect charges that are authorized by law (including, without limitation, pursuant to any order of any governmental authority authorized by law to regulate public utilities) to be invoiced to customers of the Borrower or any direct or indirect Subsidiary of the Borrower.

“Environmental Laws” means any federal, state or local laws, ordinances or codes, rules, orders, or regulations relating to pollution or protection of the environment, including, without limitation, laws relating to hazardous substances, laws relating to reclamation of land and waterways and laws relating to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollution, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.

“Equity Interest” means, with respect to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are authorized or otherwise existing on any date of determination; provided that Equity Interest shall not include Trust Preferred Securities or any debt security that constitutes Debt and is convertible into, or exchangeable for, Equity Interests.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended and modified from time to time.

“ERISA Affiliate” of a Person or entity means any Person, trade or business (whether or not incorporated) that is a member of a group of which such Person or entity is a member and that is under common control with such Person or entity within the meaning of, or that would otherwise be aggregated with such Person or entity under, Section 414 of the Code.

“ERISA Plan” means an employee benefit plan maintained for employees of any Person or any ERISA Affiliate of such Person subject to Title IV of ERISA (other than a Multiemployer Plan).

“ERISA Termination Event” means (i) a Reportable Event described in Section 4043 of ERISA and the regulations issued thereunder (other than a Reportable Event not subject to the provision for 30- day notice to PBGC), or (ii) the withdrawal of the Borrower or any of its ERISA Affiliates from an ERISA Plan during a plan year in which the Borrower or any of its ERISA Affiliates was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (iii) the filing of a notice of intent to terminate an ERISA Plan or the treatment of an ERISA Plan amendment as a termination under Section 4041 of ERISA, or (iv) the institution of proceedings to terminate an ERISA Plan by the PBGC or to appoint a trustee to administer any ERISA Plan, or (v) any other event or condition that would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan.

“Erroneous Payment” has the meaning assigned to it in Section 7.09(a).

“Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Impacted Class” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Return Deficiency” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section 7.09(e).

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

“Events of Default” has the meaning specified in Section 6.01.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Credit Party or required to be withheld or deducted from a payment to a Credit Party, (i) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of such Credit Party being organized under the laws of, or having its principal office or, in the case of any Lender, its Applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii) in the case of a Lender (which for purposes of this clause (ii) shall include any LC Issuing Bank), U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Advance or Commitment pursuant to a law in effect on the date on which (A) such Lender acquires such interest in the Advance or Commitment (other than pursuant to an assignment requested by the Borrower under Section 8.07(e)) or (B) such Lender changes its Applicable Lending Office, except in each case to the extent that, pursuant to Section 2.15, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Applicable Lending Office, (iii) Taxes attributable to such Credit Party’s failure to comply with Section 2.15(g) and (iv) any U.S. federal withholding Taxes imposed under FATCA.

“Existing Credit Agreement” has the meaning specified in the preliminary statements hereto.

“Existing Letter of Credit” means a letter of credit listed on Schedule III hereto outstanding under the Existing Credit Agreement immediately prior to the satisfaction of all the conditions precedent set forth in Sections 3.01 and 3.02.

“Existing Termination Date” has the meaning specified in Section 2.18(a).

“Extension Date” has the meaning specified in Section 2.18(a).

“Extension of Credit” means (i) the disbursement of the proceeds of any Borrowing and (ii) the issuance of a Letter of Credit or Green Letter of Credit or the amendment of any Letter of Credit or Green Letter of Credit having the effect of extending the stated termination date thereof or increasing the maximum amount available to be drawn thereunder.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreement entered into in connection with such sections of the Code and any legislation, law, regulation or practice enacted or promulgated pursuant to such intergovernmental agreement.

“FCA” has the meaning specified in Section 2.20(a).

“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate; provided, however, if the Federal Funds Rate as so determined would be less than zero (0.00%), such rate shall be deemed to be zero (0.00%) for the purposes of this Agreement.

“Fee Letter” means the letter agreement dated August 31, 2021 between the Borrower and Citibank, as amended, modified and supplemented from time to time.

“Fitch” means Fitch Ratings Ltd., and its successors or if Fitch does not have a rating for the Borrower (but S&P or Moody’s do) another nationally-recognized and reputable credit service satisfactory to the Administrative Agent shall be used in its stead.

“Floor” means a rate of interest equal to 0.0%.

“Foreign Lender” means a Lender that is not a U.S. Person.

“Fronting Commitment” means, with respect to any LC Issuing Bank, the aggregate stated amount of all Letters of Credit that such LC Issuing Bank agrees to issue, as modified from time to time pursuant to the applicable LC Issuing Bank Agreement between such LC Issuing Bank and the Borrower. With respect to each Lender that is an LC Issuing Bank on the Restatement Effective Date, such LC Issuing Bank’s Fronting Commitment shall be such LC Issuing Bank’s “Fronting Commitment Amount” listed on Schedule II, and with respect to any Lender that becomes an LC Issuing Bank after the Restatement Effective Date, such Lender’s Fronting Commitment shall equal the amount agreed between the Borrower and such Lender at the time that such Lender becomes an LC Issuing Bank, in each case, as such Fronting Commitment may be modified in accordance with the terms of this Agreement.

“Fronting Fee” has the meaning specified in Section 2.04(c).

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.

“GAAP” means generally accepted accounting principles in the United States consistent with those applied in the preparation of the financial statements referred to in Section 4.01(e) hereof.

“Governmental Body” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority,

instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

“Granting Lender” has the meaning specified in Section 8.07(g).

“Green Base Rate Advance” means an Advance that bears interest as provided in Section 2.07(c).

“Green Letter of Credit” means any letter of credit issued or outstanding hereunder that is used, or the proceeds of which are used, solely for the purposes set forth in Section 5.01(b).

“Green Loan Sublimit” means an amount equal to the combined Commitments of the Lenders as in effect from time to time. The Green Loan Sublimit is part of, and not in addition to, the combined Commitments of the Lenders.

“GreenOutstanding Credits” means, on any date of determination, an amount equal to the sum of (i) the aggregate principal amount of all Green Base Rate Advances and Green SOFR Advances outstanding on such date plus (ii) that portion of the LC Outstandings arising from Green Letters of Credit on such date, in each case, after giving effect to all repayments and prepayments of Advances and Reimbursement Amounts and all reductions in the LC Outstandings on such date.

“GreenSOFR Advance” means an Advance that bears interest as provided in Section 2.07(d).

“Guaranty Obligations” means direct or indirect guaranties in respect of, and obligations to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, Debt of any Person, including, without limitation, Support Obligations.

“Hedge Agreement” means any contract, instrument or agreement in respect of Derivative Obligations.

“Hybrid Securities” means (i) debt or preferred or preference equity securities (however designated or denominated) of the Borrower or any of its Subsidiaries that are mandatorily convertible into Common Equity or Preferred Equity of the Borrower or any of its Subsidiaries, provided that such securities do not constitute Redeemable Stock, (ii) securities of the Borrower or any of its Subsidiaries that (A) are afforded equity treatment (whether full or partial) by S&P, Moody’s or Fitch at the time of issuance, and (B) require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to 91 days after the Termination Date, (iii) any other securities (however designated or denominated), that are (A) issued by the Borrower or any of its Subsidiaries, (B) not subject to mandatory redemption or mandatory prepayment, and (C) together with any guaranty thereof, subordinate in right of payment to the unsecured and unsubordinated indebtedness (other than trade liabilities incurred in the ordinary course of business and payable in accordance with customary terms) of the issuer of such securities or guaranty and (iv) on any date of determination, all outstanding preferred stock and other preferred securities of the Borrower and its Subsidiaries, including preferred securities issued by any subsidiary trust.

“IBA” has the meaning specified in Section 2.20(a).

“ICC” has the meaning specified in Section 2.03(j).

“ICC Rule” has the meaning specified in Section 2.03(j).

“Increasing Lender” has the meaning specified in Section 2.05(c)(i).

“Indemnified Person” has the meaning specified in Section 8.04(c).

“Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (ii) to the extent not otherwise described in (i), Other Taxes.

“Interest Period” means, for each Advance made as part of the same Borrowing, the period commencing on the date of such Advance or the date of the Conversion of any Advance into such an Advance and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each such Interest Period shall be 1, 3 or 6 months (or any other period acceptable to all the Lenders) in the case of a SOFR Advance or Green SOFR Advance, as the Borrower may, upon notice received by the Administrative Agent not later than 1:00 P.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided, however, that:

i.the Borrower may not select any Interest Period that ends after the earliest of the then- scheduled Termination Date applicable to the Commitments of all the Lenders;

i.Interest Periods commencing on the same date for Advances made as part of the same Borrowing shall be of the same duration; and

i.whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, in the case of any Interest Period for a SOFR Advance or Green SOFR Advance, that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day.

“IRS” means the United States Internal Revenue Service.

“ISP” has the meaning specified in Section 2.03(j).

“LC Fee” has the meaning specified in Section 2.04(b).

“LC Issuing Bank” means each Lender listed on Schedule II with a Fronting Commitment and each other consenting Lender or Affiliate thereof that may be appointed from time to time by the Borrower to issue Letters of Credit under this Agreement, that is reasonably acceptable to the Administrative Agent and which has executed which has executed and delivered to the Administrative Agent an LC Issuing Bank Agreement pursuant to Section 7.07(a), in each case, unless such Issuing Lender has been released from its obligations as an Issuing Lender pursuant to Section 7.07(b).

“LC Issuing Bank Agreement” means an agreement between the Borrower and the applicable LC Issuing Bank substantially in the form of Exhibit D hereto.

“LC Outstandings” means, on any date of determination, the sum of the undrawn stated amounts of all Letters of Credit that are outstanding on such date plus the aggregate principal amount of all unpaid reimbursement obligations of the Borrower on such date with respect to payments made by the LC Issuing Banks under Letters of Credit. The LC Outstandings with respect to any Lender shall equal such Lender’s Percentage of the sum in the immediately preceding sentence.

“LC Payment Notice” has the meaning specified in Section 2.03(d).

“Lender Extension Notice Date” has the meaning specified in Section 2.18(b).

“Lender Insolvency Event” means that (i) a Lender or its Lender Parent is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, or (ii) a Lender or its Lender Parent is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its Lender Parent, or such Lender or its Lender Parent has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment; provided that, a Lender Insolvency Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Body so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Body) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.

“Lender Parent” means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

“Lenders” means the Banks listed on the signature pages hereof and each Person that shall become a party hereto pursuant to Section 8.07.

“Letter of Credit” means (i) an Existing Letter of Credit or (ii) a standby letter of credit (which may include commercial letters of credit, if agreed to by the applicable LC Issuing Bank) issued by an LC Issuing Bank pursuant to Section 2.03, in each case, as such letter of credit may from time to time be amended, modified or extended in accordance with the terms of this Agreement.

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, a Person or any of its Subsidiaries shall be deemed to own, subject to a Lien, any asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset.

“Loan Documents” means this Agreement, each promissory note delivered under Section 2.17, the Fee Letter, each LC Issuing Bank Agreement and each other document so designated by the Borrower and the Majority Lenders, in each case, as any of the foregoing may be amended, supplemented or modified from time to time.

“Majority Lenders” means, subject to the last paragraph of Section 8.01, at any time Lenders to which are owed more than 50% of the then aggregate unpaid principal amount of the Advances and participation obligations with respect to the LC Outstandings (based, in the case of any Alternative Currency Letters of Credit, on the Dollar Equivalent at such time), or, if there are no Outstanding Credits, Lenders having more than 50% of the Commitments (without giving effect to any termination in whole of the Commitments pursuant to Section 6.02), provided, that for purposes hereof, neither the Borrower, nor any of its Affiliates, if a Lender, shall be included in (i) the Lenders holding such amount of the Advances or participation obligations with respect to the LC Outstandings or having such amount of the Commitments or (ii) determining the aggregate unpaid principal amount of the Advances or participation obligations with respect to the LC Outstandings (based, in the case of any Alternative Currency Letters of Credit, on the Dollar Equivalent at such time) or the total Commitments.

“Margin Stock” has the meaning assigned to that term in Regulation U issued by the Board of Governors of the Federal Reserve System, and as amended and in effect from time to time.

“Material Adverse Effect” means a material adverse effect on (i) the business, consolidated results of operations, or consolidated financial condition of the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform its material obligations under any Loan Document or (iii) the rights of and remedies available to the Administrative Agent or any Lender under any Loan Document.

“Maximum Rate” has the meaning specified in Section 8.23.

“Minimum CP Rating” means (i) A‑1 for Standard & Poor’s Ratings Services; (ii) P‑1 for Moody’s Investors Service, Inc.; (iii) F‑1 for Fitch IBCA, Inc. and (iv) D‑1 for Duff & Phelps Credit Rating Co.

“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding three plan years made or accrued an obligation to make contributions.

“Net Cash Proceeds”: (a) with respect to a Covered Transaction, means the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of deferred consideration) by the Borrower and its Subsidiaries from such Covered Transaction after deducting therefrom (without duplication) (i) brokerage commissions, underwriting fees and discounts, legal fees, finder’s fees and other similar fees and commissions, (ii) in the case of a Covered Transaction in the form of incurrence of Debt by a Subsidiary, the amount of any Debt of such Subsidiary that, by the

terms of the agreement or instrument governing such Debt or applicable law, is required to be repaid or prepaid and is actually so repaid or prepaid with all or a portion of the proceeds of such Covered Transaction and (iii) any portion of the proceeds of such Covered Transaction required to prepay or collateralize interest or dividends payable in respect of such Covered Transaction during one six-month period.

“Non-Consenting Lender” means any Lender hereunder that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 8.01 and (b) has been approved by the Majority Lenders or the majority of Lenders directly affected thereby (as applicable).

“Non-Defaulting Lender” means, at any time, a Lender that is not a Defaulting Lender or a Potential Defaulting Lender.

“Non-Extending Lender” has the meaning specified in Section 2.18(b).

“Non-Performing Lender” has the meaning specified in Section 2.03(e).

“Notice of Borrowing” has the meaning specified in Section 2.02(a).

“Notice of Conversion” has the meaning specified in Section 2.10(a).

“NYFRB” means the Federal Reserve Bank of New York.

“Off Balance Sheet Obligation” means, with respect to any Person, any obligation of such Person under a synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing classified as an operating lease in accordance with GAAP, if such obligations would give rise to a claim against such Person in a proceeding referred to in Section 6.01(e).

“Other Connection Taxes” means, with respect to any Credit Party, Taxes imposed as a result of a present or former connection between such Credit Party and the jurisdiction imposing such Tax (other than connections arising from such Credit Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Advance or Loan Document).

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 8.07(e)).

“Outstanding Credits” means, on any date of determination, an amount equal to the sum of (i) the aggregate principal amount of all Borrowings outstanding on such date plus (ii) the LC Outstandings on such date, in each case, after giving effect to all repayments and prepayments of Advances and Reimbursement Amounts and all reductions in the LC Outstandings on such date.

“Parent Operating Cash Flow” means, for any period, the sum of the following amounts (determined without duplication) as calculated below:

(i) dividends paid to the Borrower by its Subsidiaries during such period;

(ii) consulting and management fees paid to the Borrower for such period;

(iii) tax sharing payments made to the Borrower during such period;

(iv) interest and other distributions paid to the Borrower during such period with respect to cash and other Temporary Cash Investments of the Borrower (other than with respect to amounts on deposit in the Cash Collateral Account);

(v) cash payments made to the Borrower in respect of foreign exchange Hedge Agreements or other foreign exchange activities entered into by the Borrower on behalf of any of its Subsidiaries; and

(vi) other cash payments made to the Borrower by its Subsidiaries other than (A) returns of invested capital and (B) payments in an amount equal to the aggregate amount released from debt service reserve accounts upon the issuance of letters of credit for the account of the Borrower and the benefit of the beneficiaries of such accounts.

For purposes of determining Parent Operating Cash Flow:

(1) the aggregate net cash payments received by a Qualified Holding Company but not paid as a dividend to the Borrower during such period due to tax or other cash management considerations may be included in Parent Operating Cash Flow for such period; provided that any amounts so included will not be included in Parent Operating Cash Flow if and when paid to the Borrower in any subsequent period; and

(2) Net Cash Proceeds from asset sales, Stock Dispositions or the incurrence of Debt (but only to the extent that the Net Cash Proceeds from such incurrence of Debt are paid to the Borrower or a Qualified Holding Company as a return of capital) shall not be included in Parent Operating Cash Flow for any period.

“Participant” has the meaning specified in Section 8.07(d).

“Participant Register” has the meaning specified in Section 8.07(d).

“Patriot Act” means USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as in effect from time to time.

“Payment Recipient” has the meaning assigned to it in Section 7.09(a).

“PBGC” means the U.S. Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

“Percentage” means, for any Lender on any date of determination, the percentage obtained by dividing such Lender’s Commitment on such day by the total of the Commitments on such date, and multiplying the quotient so obtained by 100%.

“Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

“Platform” has the meaning specified in Section 8.11(b).

“Potential Defaulting Lender” means, at any time, (i) any Lender with respect to which an event of the kind referred to in the definition of “Lender Insolvency Event” has occurred and is continuing in respect of any Subsidiary of such Lender, or (ii) any Lender that has notified, or whose Lender Parent or a Subsidiary thereof has notified, the Administrative Agent, the Borrower or any LC Issuing Bank in writing, or has stated publicly, that it does not intend to comply with its funding obligations generally under other loan agreements, credit agreements and other similar agreements, unless such writing or statement states that such position is based on such Lender’s determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement). Any determination by the Administrative Agent that a Lender is a Potential Defaulting Lender under any of clauses (i) and (ii) above will be conclusive and binding absent manifest error, and such Lender will be deemed a Potential Defaulting Lender (subject to Section 2.19(f) hereof) upon notification of such determination by the Administrative Agent to the Borrower, the LC Issuing Banks and the Lenders.

“Preferred Equity” means any stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company membership interests),

whether with or without voting rights, that is entitled to dividends or distributions prior to the payment of dividends or distributions with respect to Common Equity.

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

“QFC Credit Support” has the meaning specified in Section 8.22.

“Qualified Equity-Linked or Hybrid Securities” means preferred stock, mandatorily convertible debt securities and Hybrid Securities, in each case, that does not constitute Redeemable Stock.

“Qualified Holding Company” means any Wholly-Owned Consolidated Subsidiary of the Borrower that satisfies, and all of whose direct or indirect holding companies (other than the Borrower) are Wholly-Owned Consolidated Subsidiaries of Borrower that satisfy, the following conditions:

(i) its direct and indirect interest in any AES Business shall be limited to the ownership of Common Equity or Debt obligations of a Person with a direct or indirect interest in such AES Business;

(ii) no consensual encumbrance or restriction of any kind shall exist on its ability to make payments, distributions, loans, advances or transfers to the Borrower;

(iii) it shall not have outstanding any Debt other than guarantees of Debt under, or Liens constituting Debt under, the Loan Documents (and permitted refinancings thereof) and Debt to the Borrower or to other Qualified Holding Companies;

(iv) it shall engage in no business or other activity, shall enter into no binding agreements and shall incur no obligations (other than agreements with, and obligations to, the Borrower or other Qualified Holding Companies) other than (A) the holding of the Common Equity and Debt obligations permitted under clause (i) above, including entering into retention agreements and subordination agreements relating to such Common Equity and Debt, (B) the holding of cash received from its Subsidiaries and the investment thereof in Temporary Cash Investments, (C) the payment of dividends and other amounts to the Borrower, (D) ordinary business development activities, (E) the making (but not the entering into binding obligations to make) of investments in AES Businesses owned by its Subsidiaries, and (F) entering into foreign exchange Hedge Agreements in respect of dividends received or expected to be received from Subsidiaries of such Qualified Holding Company, in a notional amount not to exceed $200,000,000 outstanding at any time for each Qualified Holding Company and for a term of no more than six months from the date the relevant Hedge Agreement is entered into; and

(v) is listed on Schedule IV hereto (as supplemented from time to time by written notice to the Administrative Agent by the Borrower).

“Rate Contract” means any agreement with respect to any swap, cap, collar, hedge, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions.

“Recourse Debt” means, on any date, the sum of (i) Debt of the Borrower (other than undrawn letters of credit supporting business development activities) plus (ii) Derivative Obligations of the Borrower plus (iii) Off Balance Sheet Obligations of the Borrower.

“Recourse Debt to Cash Flow Ratio” means, for any period, the ratio of:

(i) the sum of the Recourse Debt as of the end of such period to;

(ii) the Adjusted Parent Operating Cash Flow during such period.

“Redeemable Stock” means any class or series of Common Equity or Hybrid Securities of any Person that by its terms or otherwise is (i) required to be redeemed prior to the date that is 180 days following the Termination Date (other than a redemption solely in the form of Common Equity that does not constitute Redeemable Stock), (ii) redeemable at the option of the holder of such class or series of Common Equity or Hybrid Securities at any time prior to the date that is 180 days following the Termination Date or (iii) convertible into or exchangeable for (unless solely at the option of such person) Common Equity or Hybrid Securities referred to in clause (i) or (ii) above or Debt having a scheduled maturity prior to the date that is 180 days following the Termination Date; provided that any Common Equity or Hybrid Securities that would not constitute Redeemable Stock but for provisions thereof giving holders thereof the right to require such person to repurchase or redeem such Common Equity or Hybrid Securities upon the occurrence of an “asset sale” or a “change of control” occurring prior to the date that is 180 days following the Termination Date shall not constitute Redeemable Stock if such Common Equity or Hybrid Securities specifically provides that such person will not repurchase or redeem any such Common Equity or Hybrid Securities pursuant to such provisions unless such repurchase or redemption is permitted under the terms of this Agreement.

“Register” has the meaning specified in Section 8.07(c).

“Reimbursement Amount” has the meaning specified in Section 2.03(c).

“Related Parties” means with respect to any specified Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

“Relevant Governmental Body” means the Board of Governors of the Federal Reserve System or the NYFRB, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the NYFRB, or any successor thereto.

“Removal Effective Date” has the meaning specified in Section 7.06(b).

“Reportable Event” has the meaning assigned to that term in Title IV of ERISA.

“Request for Issuance” means a request made pursuant to Section 2.03(a) in the form of Exhibit A-3.

“Resignation Effective Date” has the meaning specified in Section 7.06(a).

“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

“Restatement Effective Date” means September 24, 2021.

“S&P” means S&P Global Ratings, acting through Standard & Poor’s Financial Services LLC business, or any successor thereto.

“Sanctioned Country” means a country, region or territory which is the subject or target of any Sanctions.

“Sanctioned Person” means (a) any Person listed in any Sanctions- related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state or Her Majesty’s Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by or acting on behalf of any such Person described in the preceding clause (a) or (b), or (d) any Person, to the Borrower’s knowledge, with which any Lender is prohibited under Sanctions relevant to it from dealing or engaging in transactions. For purposes of the foregoing, control of a Person shall be deemed to include where a Sanctioned Person (i) owns or has power to vote 25% or more of the issued and outstanding equity interests having ordinary

voting power for the election of directors of the Person or other individuals performing similar functions for the Person, or (ii) has the power to direct or cause the direction of the management and policies of the Person, whether by ownership of equity interests, contracts or otherwise.

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or by the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any EU member state, or Her Majesty’s Treasury of the United Kingdom.

“SEC” means the United States Securities and Exchange Commission.

“Senior Debt Rating Level” at any time shall be determined as follows in accordance with the ratings assigned by S&P, Moody’s and Fitch to the Borrower’s senior unsecured long-term debt (or, in the event that any of S&P, Moody’s or Fitch has not issued a rating for the Borrower’s senior unsecured long-term debt, the issuer or corporate rating (as such rating is designated by S&P, Moody’s or Fitch) assigned by such rating agency to the Borrower):

S&P Rating/Moody’s Rating/Fitch Rating	Senior Debt Rating Level
Baa1 (or higher)/BBB+ (or higher)/BBB+ (or higher)	1
Baa2/BBB/BBB	2
Baa3/BBB-/BBB-	3
Ba1/BB+/BB+	4
Ba2 (or lower)/BB (or lower)/BB (or lower)	5

Notwithstanding the foregoing, (i) if all three rating agencies provide such ratings and (x) such ratings fall within two different levels, the Senior Debt Rating Level will be deemed to be the Senior Debt Rating Level that corresponds to the rating level assigned by two of such agencies, and (y) such ratings fall within three different levels, the Senior Debt Rating Level will be deemed to be the Senior Debt Rating Level that corresponds to the middle rating level and (ii) if only two rating agencies provide such ratings and (x) if the ratings described above differ by one level or “notch”, the Senior Debt Rating Level will be deemed to be the Senior Debt Rating Level that corresponds to the rating level that is the higher of the two ratings described above, and (y) if the ratings described above differ by more than one level or “notch,” the Senior Debt Rating Level will be deemed to be the Senior Debt Rating Level that corresponds to the rating level that is one level or “notch” below the higher of the two ratings described above.

“Significant Subsidiary” means any direct or indirect Subsidiary of the Borrower if such Subsidiary’s contribution to Parent Operating Cash Flow for the four most recently completed fiscal quarters of the Borrower constitutes 20% or more of Parent Operating Cash Flow for such period.

“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).

“SOFR Advance” means an Advance that bears interest as provided in Section 2.07(b).

“SPC” has the meaning specified in Section 8.07(g).

“Special Purpose Financing Subsidiary” means a Consolidated Subsidiary that has no direct or indirect interest in an AES Business and was formed solely for the purpose of issuing Trust Preferred Securities.

“Stock Disposition” means, with respect to any Person, the issuance or sale of Equity Interests of such Person other than any such issuance to directors, officers or employees pursuant to employee benefit plans in the ordinary course of business (including by way of exercise of stock options).

“Subsidiary” means, with respect to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions are at the time directly or indirectly owned by such a Person, or one or more Subsidiaries, or by such Person and one or more of its Subsidiaries.

“Support Obligations” means any financial obligation, contingent or otherwise, of any Person guaranteeing or otherwise supporting any Debt for borrowed money of any other Person in any manner, whether directly or indirectly, and including, without limitation, any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or to purchase (or to advance or supply funds for the purchase of) any security for the payment of such Debt, (ii) to purchase property, securities or services for the purpose of assuring the owner of such Debt of the payment of such Debt, (iii) to maintain working capital, equity capital, available cash or other financial statement condition of the primary obligor so as to enable the primary obligor to pay such Debt, (iv) to provide equity capital under or in respect of equity subscription arrangements so as to assure any Person with respect to the payment of such Debt, or (v) to provide financial support for the performance of, or to arrange for the performance of, any non-funded debt payment obligations of the primary obligor of such Debt.

“Supported QFC” has the meaning specified in Section 8.22.

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Body, including any interest, additions to tax or penalties applicable thereto.

“Temporary Cash Investment” means any investment in (A)(i) direct obligations of the United States or any agency thereof, or obligations guaranteed by the United States or any agency thereof; (ii) commercial paper rated at least the Minimum CP Rating by any two of Standard & Poor’s Ratings Services, Moody’s Investors Service, Inc., Fitch IBCA, Inc. and Duff & Phelps Credit Rating Co., provided that one of such two Minimum CP Ratings is by Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.; (iii) time deposits with, including certificates of deposit issued by, any office located in the United States of any bank or trust company which is organized or licensed under the laws of the United States or any state thereof and has capital, surplus and undivided profits aggregating at least $500,000,000; (iv) medium term notes, auction rate preferred stock, asset backed securities, bonds, notes and letter of credit supported instruments, issued by any entity organized under the laws of the United States, or any state or municipality of the United States and rated in any of the three highest rated categories by Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.; (v) repurchase agreements with respect to securities described in clause (i) above entered into with an office of a bank or trust company meeting the criteria specified in clause (iii) above; (vi) Eurodollar certificates of deposit issued by any bank or trust company which has capital and unimpaired surplus of not less than $500,000,000 or (vii) with respect to a Subsidiary, any category of investment designated as permissible investments under such Subsidiary’s loan documentation; provided that in each case (except clause (vii)) that such investment matures within fifteen months from the date of acquisition thereof by the Borrower or a Subsidiary and (B) registered investment companies that are “money market funds” within the meaning of Rule 2a-7 under the Investment Company Act of 1940.

“Term SOFR” means,

(a) for any calculation with respect to a SOFR Advance or a Green SOFR Advance, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

(b) for any calculation with respect to a Base Rate Advance or Green Base Rate Advance on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “ABR Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any ABR Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such ABR Term SOFR Determination Day.

“Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

“Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.

“Termination Date” means the earlier to occur of (i) August 23, 2027, or, as to any Lender, such later date that may be established for such Lender pursuant to Section 2.18 and (ii) date of termination in whole of the Commitments and each LC Issuing Bank’s obligation to issue Letters of Credit pursuant to Section 2.05 or Section 6.02 hereof; provided that, if such earlier date is not a Business Day, the Termination Date means the Business Day next preceding such earlier date.

“Trust Indenture Act” has the meaning specified in Section 7.08.

“Trust Preferred Securities” means, at any date, any equity interests in a Special Purpose Financing Subsidiary of the Borrower (such as those known as “TECONS”, “MIPS” or “RHINOS”): (I) that are not (A) required to be redeemed or redeemable at the option of the holder thereof prior to the fifth anniversary of the Termination Date or (B) convertible into or exchangeable for (unless solely at the option of the Borrower) equity interests referred to in clause (A) above or Debt having a scheduled maturity, or requiring any repayments or prepayments of principal or any sinking fund or similar payments in respect of principal or providing for any such repayment, prepayment, sinking fund or other payment at the option of the holder thereof prior to the fifth anniversary of the Termination Date and (II) as to which, at such date, the Borrower has the right to defer the payment of all dividends and other distributions in respect thereof for the period of at least 19 consecutive quarters beginning at such date.

“UCP” has the meaning specified in Section 2.03(j).

“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

“U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

“U.S. Special Resolution Regimes” has the meaning specified in Section 8.22.

“U.S. Tax Compliance Certificate” shall have the meaning specified in Section 2.15(g)(ii)(B)(3).

“Wholly-Owned Consolidated Subsidiary” means any Consolidated Subsidiary all of the shares of Common Equity or other ownership interests of which (except directors’ qualifying shares and shares owned by foreign nationals mandated by applicable law) are at the time directly or indirectly owned by the Borrower.

“Withholding Agent” means the Borrower and the Administrative Agent.

“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

SECTION 1.02. Computation of Time Periods.

In this Agreement and any other Loan Document, in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding.”

SECTION 1.03. Accounting Terms and Principles.

All accounting terms not specifically defined herein shall be construed in accordance with GAAP. It is agreed that for purposes of determining compliance with the financial covenant contained in Section 5.02(b) hereof, leases and power purchase agreements shall be treated on the basis of GAAP and the application thereof as in effect on the Restatement Effective Date. If changes in GAAP or the application thereof used in the preparation of any financial statement of the Borrower affect compliance with the financial covenant contained in Section 5.02(b) hereof, the Borrower, the Administrative Agent and the Lenders agree to negotiate in good faith such modifications as are necessary as a result of such changes in GAAP which changes shall, in the case of a change in lease accounting, produce a result which shall be consistent with the immediately preceding sentence and to amend this Agreement to effect such modifications. Until such provisions of this Agreement are modified, determinations of compliance with the financial covenant contained in Section 5.02(b) hereof shall be made on the basis of GAAP and the application thereof as in effect and applied immediately before such change became effective, and all financial statements shall be provided together with a reconciliation between the calculations and amounts set forth therein before and after giving effect to such changes in GAAP.

SECTION 1.04. Statutory Divisions.

In this Agreement, unless the context otherwise requires, for all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person and the original Person survives such division in any form for any period, then such asset, right, obligation or liability shall be deemed to have been transferred from the original Person to the subsequent Person and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity securities at such time.

SECTION 1.05 Rates.

The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or

any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Article II. AMOUNTS AND TERMS OF THE EXTENSIONS OF CREDIT

SECTION 2.01 The Commitments.

Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make Advances in Dollars to the Borrower and to participate in the reimbursement obligations of the Borrower in respect of Letters of Credit from time to time on any Business Day during the period from the Restatement Effective Date until the Termination Date applicable to the Commitment of such Lender in an aggregate amount not to exceed at any time outstanding the amount set forth opposite such Lender’s name on Schedule I hereto or, if such Lender has entered into any Assignment and Assumption, set forth for such Lender in the Register maintained by the Administrative Agent pursuant to Section 8.07(c), as such amount may be reduced pursuant to Section 2.05(a) or increased pursuant to Section 2.05(c) (such Lender’s “Commitment”). Each Borrowing shall be in an amount not less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof and shall consist of Advances of the same Type and, in the case of SOFR Advances or Green SOFR Advances, having the same Interest Period made or Converted on the same day by the Lenders ratably according to their respective Commitments. Within the limits of each Lender’s Commitment, the Borrower may from time to time borrow, prepay pursuant to Section 2.11 and reborrow under this Section 2.01; provided, however, that at no time may (x) the Outstanding Credits exceed the aggregate amount of the Commitments or (y) the Green Outstanding Credits exceed the Green Loan Sublimit.

SECTION 2.02. Making the Advances.

a. Each Borrowing shall be made on notice, given (i) in the case of a Borrowing comprising SOFR Advances or Green SOFR Advances, not later than 1:00 P.M. (New York City time) on the third Business Day prior to the date of the proposed Borrowing, and (ii) in the case of a Borrowing comprising Base Rate Advances or Green Base Rate Advances, not later than 1:00 P.M. (New York City time) on the date of the proposed Borrowing, by the Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be transmitted by facsimile or email in substantially the form of Exhibit A-1 hereto, specifying therein the requested (A) date of such Borrowing, (B) Type of Advances to be made in connection with such Borrowing, (C) aggregate amount of such Borrowing, (D) wire instructions of the Borrower, and (E) in the case of a Borrowing comprising SOFR Advances or Green SOFR Advances, initial Interest Period for such Advances. Each Lender shall, before (x) 12:00 noon (New York City time) on the date of any Borrowing comprising SOFR Advances or Green SOFR Advances, and (y) 3:00 P.M. (New York City time) on the date of any Borrowing comprising Base Rate Advances or Green Base Rate Advances, make available for the account of its Applicable Lending Office to the Administrative Agent at the Agent’s Account, in same day funds, such Lender’s ratable portion of such Borrowing. After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower in such manner as the Borrower shall have specified in the applicable Notice of Borrowing.

a.Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of any Notice of Borrowing requesting SOFR Advances or Green SOFR Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

a. Unless the Administrative Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower (following the Administrative Agent’s demand on such Lender for the corresponding amount) severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to Advances made in connection with such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement.

a.The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing.

SECTION 2.03. Letters of Credit.

a. Subject to the satisfaction of the conditions precedent set forth in Sections 3.01 and 3.02 on the Restatement Effective Date, each Existing Letter of Credit shall be deemed to be a Letter of Credit or Green Letter of Credit, as applicable, issued hereunder. Subject to the terms and conditions hereof, each LC Issuing Bank agrees to issue Letters of Credit from time to time for the account of the Borrower (or to extend the stated maturity thereof or to amend or otherwise modify the terms thereof), in an aggregate stated amount not exceeding such LC Issuing Bank’s Fronting Commitment, on not less than two Business Days’ prior notice thereof by delivery of a Request for Issuance to the Administrative Agent (which shall promptly distribute copies thereof to the Lenders) and the applicable LC Issuing Bank. Each Request for Issuance shall specify (i) the date (which shall be a Business Day) of issuance of such Letter of Credit or Green Letter of Credit (or the date of effectiveness of such extension, amendment or other modification) and the stated expiry date thereof (which shall be no later than five Business Days prior to the then-scheduled Termination Date of the Lender that is, or is an Affiliate of, such LC Issuing Bank), (ii) the proposed stated amount of such Letter of Credit or Green Letter of Credit, (iii) the name and address of the beneficiary of such Letter of Credit or Green Letter of Credit, (iv) a statement of drawing conditions applicable to such Letter of Credit or Green Letter of Credit and (v) whether such letter of credit is a Green Letter of Credit, and if such Request for Issuance relates to an amendment or other modification (other than an extension of the stated maturity thereof) of a Letter of Credit or Green Letter of Credit, it shall be accompanied by the consent of the beneficiary of the Letter of Credit or Green Letter of Credit thereto. Each Request for Issuance shall be irrevocable unless modified or rescinded by the Borrower not less than one day prior to the proposed date of issuance (or effectiveness) specified therein. Not later than 12:00 noon (New York City time) on the proposed date of issuance (or effectiveness) specified in such Request for Issuance, and upon fulfillment of the applicable conditions precedent and the other requirements set forth herein, the applicable LC Issuing Bank shall issue (or extend, amend or otherwise modify) such Letter of Credit or Green Letter of Credit and provide notice and a copy thereof to the Administrative Agent, which shall promptly furnish notice thereof to the Lenders. Upon each issuance of a Letter of Credit or Green Letter of Credit by any LC Issuing Bank, each Lender shall be deemed, and hereby irrevocably and unconditionally agrees, to purchase from such LC Issuing Bank without recourse a participation in such Letter of Credit or Green Letter of

Credit equal to such Lender’s Percentage (which, in the case of any Alternative Currency Letter of Credit, shall be the Dollar Equivalent thereof) of the aggregate amount available to be drawn under such Letter of Credit or Green Letter of Credit. Each Letter of Credit or Green Letter of Credit shall utilize the Commitment of each Lender by an amount equal to the amount of such participation.

a.No Letter of Credit or Green Letter of Credit shall be requested or issued hereunder if, after the issuance thereof, (i) the Outstanding Credits would exceed the total Commitments then scheduled to be in effect until the Termination Date, (ii) that portion of the LC Outstandings arising from Letters of Credit issued by an LC Issuing Bank would exceed the amount of such LC Issuing Bank’s Fronting Commitment or (iii) the Green Outstanding Credits would exceed the Green Loan Sublimit. No LC Issuing Bank shall extend, amend or otherwise modify any Letter of Credit or Green Letter of Credit if such LC Issuing Bank would not be permitted at such time to issue the Letter of Credit or Green Letter of Credit in its modified form under the terms hereof. No LC Issuing Bank shall at any time be obligated to issue any Letter of Credit or Green Letter of Credit if such issuance would conflict with any applicable law.

a. The Borrower hereby agrees to pay to the Administrative Agent for the account of the applicable LC Issuing Bank and each Lender that has funded its participation in the reimbursement obligations of the Borrower pursuant to subsection (d) below, on demand, without presentment, protest or other formalities of any kind, made by the applicable LC Issuing Bank to the Borrower, on and after each date on which the applicable LC Issuing Bank shall pay any amount under any Letter of Credit or Green Letter of Credit issued by such LC Issuing Bank, a sum equal to the amount so paid, (which, in the case of any drawing under an Alternative Currency Letter of Credit shall be the Dollar Equivalent thereof) (the “Reimbursement Amount”) plus interest on the Reimbursement Amount from the date so paid by such LC Issuing Bank until repayment to such LC Issuing Bank in full at a fluctuating interest rate per annum equal to (i) with regard to Letters of Credit, the interest rate applicable to Base Rate Advances and (ii) with regard to Green Letters of Credit, the interest rate applicable to Green Base Rate Advances plus, if any amount paid by such LC Issuing Bank under a Letter of Credit or Green Letter of Credit is not reimbursed by the Borrower within three Business Days, 2%. The Borrower may satisfy its obligation hereunder to repay the Reimbursement Amount by requesting a Borrowing under Section 2.02 in the amount of such Reimbursement Amount (which, in the case of any Alternative Currency Letter of Credit, shall be the Dollar Equivalent thereof), and the proceeds of such Borrowing may be applied to satisfy the Borrower’s obligations to the applicable LC Issuing Bank or the Lenders, as the case may be.

a.If any LC Issuing Bank shall not have been reimbursed in full for any payment made by such LC Issuing Bank under a Letter of Credit or Green Letter of Credit issued by such LC Issuing Bank on the date of such payment, such LC Issuing Bank shall give the Administrative Agent and each Lender prompt notice thereof (an “LC Payment Notice”) no later than 12:00 noon (New York City time) on the Business Day immediately succeeding the date of such payment by such LC Issuing Bank. Each Lender shall be obligated to fund the participation that such Lender purchased pursuant to Section 2.03(a) by paying to the Administrative Agent for the account of the applicable LC Issuing Bank an amount equal to such Lender’s Percentage of such unreimbursed amount (which, in the case of any Alternative Currency Letter of Credit, shall be the Dollar Equivalent thereof) paid by such LC Issuing Bank, plus interest on such amount at a rate per annum equal to the Federal Funds Rate from the date of the payment by the applicable LC Issuing Bank to the date of payment to such LC Issuing Bank by such Lender. Each such payment by a Lender shall be made not later than 3:00 P.M. (New York City time) on the later to occur of (i) the Business Day immediately following the date of such payment by the applicable LC Issuing Bank and (ii) the Business Day on which such Lender shall have received an LC Payment Notice from the applicable LC Issuing Bank. Each Lender’s obligation to make each such payment to the Administrative Agent for the account of any LC Issuing Bank shall be several and shall not be affected by the occurrence or continuance of an Event of Default or the failure of any other Lender to make any payment under this Section 2.03(d). Each Lender further agrees that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

a. The failure of any Lender to make any payment to the Administrative Agent for the account of any LC Issuing Bank in accordance with subsection (d) above shall not relieve any other Lender of its obligation to make payment, but no Lender shall be responsible for the failure of any other Lender. If any Lender (a “Non-Performing Lender”) shall fail to make any payment to the Administrative Agent for the account of any LC Issuing Bank in accordance with subsection

(d) above within five Business Days after the LC Payment Notice relating thereto, then, such Non-Performing Lender agrees to pay to the Administrative Agent for the account of the applicable LC Issuing Bank forthwith on demand such amount, together with interest thereon at the Federal Funds Rate for each day from the date such Lender would have funded its participation had it complied with the requirements of subsection (d) above until the date such amount is paid to the Administrative Agent.

a. The payment obligations of each Lender under Sections 2.03(d) and 2.03(e) and of the Borrower under this Agreement in respect of any payment under any Letter of Credit or Green Letter of Credit by any LC Issuing Bank shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including, without limitation, the following circumstances:

i.any lack of validity or enforceability of this Agreement or any other agreement or instrument relating thereto or to such Letter of Credit or Green Letter of Credit;

i.any amendment or waiver of, or any consent to departure from, the terms of this Agreement or such Letter of Credit or Green Letter of Credit;

i.the existence of any claim, setoff, defense or other right which the Borrower may have at any time against any beneficiary, or any transferee, of such Letter of Credit or Green Letter of Credit (or any Persons for whom any such beneficiary or any such transferee may be acting), the applicable LC Issuing Bank, or any other Person, whether in connection with this Agreement, the transactions contemplated hereby, thereby or by such Letter of Credit or Green Letter of Credit, or any unrelated transaction;

i.any statement or any other document presented under such Letter of Credit or Green Letter of Credit reasonably proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

i.payment in good faith by the applicable LC Issuing Bank under the Letter of Credit or Green Letter of Credit issued by such LC Issuing Bank against presentation of a draft or certificate that does not comply with the terms of such Letter of Credit or Green Letter of Credit; or

i.any other act or omission to act or delay of any kind by any Lender (including the LC Issuing Banks), the Administrative Agent or any other Person or any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this subsection (vi), constitute a legal or equitable discharge of or defense to the Borrower’s or the Lenders’ obligations hereunder.

a.The Borrower assumes all risks of the acts and omissions of any beneficiary or transferee of any Letter of Credit or Green Letter of Credit. Neither the LC Issuing Banks, the Lenders nor any of their respective officers, directors, employees, agents or Affiliates shall be liable or responsible for (i) the use that may be made of such Letter of Credit or Green Letter of Credit or any acts or omissions of any beneficiary or transferee thereof in connection therewith; (ii) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged; (iii) payment by any LC Issuing Bank against presentation of documents that do not comply with the terms of such Letter of Credit or Green Letter of Credit, including failure of any documents to bear any reference or adequate reference to such Letter of Credit or Green Letter of Credit; or (iv) any other circumstances whatsoever in making or failing to make payment under such Letter of Credit or Green Letter of Credit. Notwithstanding any provision to the contrary contained in this Agreement, the Borrower and each Lender shall have the right to bring suit against any LC Issuing Bank, and such LC Issuing Bank shall be liable to the Borrower and any Lender, to the extent of any direct, as opposed to consequential, damages suffered by the Borrower or such Lender which the Borrower or such Lender proves were caused by such LC Issuing Bank’s willful misconduct or gross negligence (as determined by a court of competent jurisdiction in a final, non-appealable judgment), including, in the case of the Borrower, such LC Issuing Bank’s willful failure to make timely payment under such Letter of Credit or Green Letter of Credit following the presentation to it by the beneficiary thereof of a draft and accompanying certificate(s) that strictly comply with the terms and conditions of such Letter of Credit or Green Letter of Credit. In

furtherance and not in limitation of the foregoing, each LC Issuing Bank may accept sight drafts and accompanying certificates presented under the Letter of Credit or Green Letter of Credit issued by such LC Issuing Bank that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and payment against such documents shall not constitute willful misconduct or gross negligence by such LC Issuing Bank. Notwithstanding the foregoing, no Lender shall be obligated to indemnify the Borrower for damages caused by any LC Issuing Bank’s willful misconduct or gross negligence (as determined by a court of competent jurisdiction in a final, non-appealable judgment).

a.The Borrower acknowledges that the rights and obligations of the LC Issuing Banks under each Letter of Credit or Green Letter of Credit are independent of the existence, performance or nonperformance of any contract or arrangement underlying such Letter of Credit or Green Letter of Credit, including contracts or arrangements between the LC Issuing Banks and the Borrower and between the Borrower and the beneficiary of such Letter of Credit or Green Letter of Credit. The LC Issuing Banks shall have no duty to notify the Borrower of its receipt of a demand or a draft, certificate or other document presented under a Letter of Credit or Green Letter of Credit or of its decision to honor such demand. The LC Issuing Banks may, without incurring any liability to the Borrower or impairing its entitlement to reimbursement under this Agreement, honor a demand under a Letter of Credit or Green Letter of Credit despite notice from the Borrower of, and without any duty to inquire into, any defense to payment or any adverse claims or other rights against the beneficiary of such Letter of Credit or Green Letter of Credit or any other person. The LC Issuing Banks shall have no duty to request or require the presentation of any document, including any default certificate, not required to be presented under the terms and conditions of a Letter of Credit or Green Letter of Credit. The LC Issuing Banks shall have no duty to seek any waiver of discrepancies from the Borrower, nor any duty to grant any waiver of discrepancies that the Borrower approves or requests. The LC Issuing Banks shall have no duty to extend the expiration date or term of a Letter of Credit or Green Letter of Credit or to issue a replacement letter of Letter of Credit or Green Letter of Credit on or before the expiration date of a Letter of Credit or Green Letter of Credit or the end of such term.

a. Any LC Issuing Bank may resign at any time in accordance with the provisions of Section 7.07 hereof.

a. The Borrower agrees that the LC Issuing Banks may issue Letters of Credit subject to the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600 (2007 Revision) or, at an LC Issuing Bank’s option, such later revision thereof in effect at the time of issuance of such Letter of Credit or Green Letter of Credit (as so chosen for the Credit, the “UCP”) or the International Standby Practices 1998, ICC Publication No. 590 or, at an LC Issuing Bank’s option, such later revision thereof in effect at the time of issuance of the Credit (as so chosen for such Letter of Credit or Green Letter of Credit, the “ISP,” and each of the UCP and the ISP, an “ICC Rule”). The LC Issuing Banks’ privileges, rights and remedies under such ICC Rules shall be in addition to, and not in limitation of, its privileges, rights and remedies expressly provided for herein. The UCP and the ISP (or such later revision of either) shall serve, in the absence of proof to the contrary, as evidence of general banking usage with respect to the subject matter thereof. The Borrower agrees that for matters not addressed by the chosen ICC Rule, such Letter of Credit or Green Letter of Credit shall be subject to and governed by the laws of the State of New York and applicable United States Federal laws. If, at the Borrower’s request, a Letter of Credit or Green Letter of Credit expressly chooses a state or country law other than New York State law and United States Federal law or is silent with respect to the choice of an ICC Rule or a governing law, the LC Issuing Banks shall not be liable for any payment, cost, expense or loss resulting from any action or inaction taken by an LC Issuing Bank if such action or inaction is or would be justified under an ICC Rule, New York law, applicable United States Federal law or the law governing such Letter of Credit or Green Letter of Credit.

a.Each LC Issuing Bank that issues an Alternative Currency Letter of Credit shall (A) on the first Business Day of each calendar month, deliver to the Administrative Agent a schedule listing (x) each outstanding Alternative Currency Letter of Credit issued by such LC Issuing Bank and whether it is a Letter of Credit or a Green Letter of Credit, (y) the maximum aggregate amount available to be drawn under each such Alternative Currency Letter of Credit at any time on or after such date (denominated in the applicable Alternative Currency, assuming the compliance with and satisfaction of all conditions for drawing enumerated therein) and (z) the equivalent in Dollars of such amount (as determined by such LC Issuing Bank on the basis of exchange rates available to or otherwise used by such LC Issuing Bank), together with the applicable exchange

rate utilized by such LC Issuing Bank and the source thereof (it being agreed and understood that such applicable exchange rate may be adjusted by a reasonable and customary volatility factor as agreed by the Borrower and such LC Issuing Bank); on the date of issuance of any Alternative Currency Letter of Credit (including, if any Alternative Currency Letters of Credit are issued or deemed issued on the Restatement Effective Date, on the Restatement Effective Date), deliver to the Administrative Agent a schedule listing the information described in clauses (x) and (y) above; (B) on the date of any increase or decrease in the amount of any Alternative Currency Letter of Credit (other than any increase or decrease attributable solely to currency exchange rate fluctuations), deliver to the Administrative Agent a schedule listing the information described in clauses (x) and (y) above after giving effect to such increase or decrease (as the case may be) and (C) not later than one Business Day after its receipt of a written request therefor from the Administrative Agent or any Lender, deliver to the Administrative Agent a schedule listing the information described in clauses (x), (y) and (z) above. The Administrative Agent shall promptly after its receipt thereof deliver a copy of each such schedule to the Borrower and the Lenders. For all purposes under this Agreement, unless otherwise expressly set forth herein, the amount in respect of each Alternative Currency Letter of Credit shall be deemed to equal, on any date of determination, the Dollar Equivalent thereof as most recently reported to the Administrative Agent by the relevant LC Issuing Bank pursuant to this subsection (k).

a. It is understood that, if Letters of Credit or Green Letters of Credit are issued in an Alternative Currency, a circumstance may arise where the Dollars needed to reimburse an LC Issuing Bank may exceed the unused Commitments of the Lenders, and the amounts on deposit in the Cash Collateral Account available for that purpose. This situation could occur if an Alternative Currency exchange rate between the currency of a Letter of Credit or Green Letter of Credit issuance and Dollars changes between the date of issuance of, and the date of funding a drawing on an Alternative Currency Letter of Credit (or funding a deposit to the Cash Collateral Account to cover issuances in excess of the Commitments) so that more Dollars are needed to purchase the Alternative Currency on the date of funding of the drawing on an Alternative Currency Letter of Credit (or funding a deposit to the Cash Collateral Account) than would have been needed to fund a drawing made on the issuance date of such Letter of Credit or Green Letter of Credit (i.e., the currency of issuance has appreciated against the Dollar between the date of issuance and the date of funding or cash collateral deposit). In such a circumstance, the LC Issuing Banks agree as follows: (x) Any shortfall under the Commitments to purchase participations in drawings under Letters of Credit or Green Letters of Credit shall be allocated according to the Percentage of the relevant LC Issuing Banks who have issued Alternative Currency Letters of Credit for which the currency of issuance has appreciated against the Dollar (“Adverse Alternative Currency Letters of Credit”); (y) the pro rata share shall be based on the Dollar Equivalent of the face amount of each Adverse Alternative Currency Letter of Credit, measured at the issuance date of each such Adverse Alternative Currency Letter of Credit and (z) Commitments shall not be used to purchase participations in Adverse Alternative Currency Letters of Credit to the extent that use of those Commitments cover any increase in the Dollar Equivalent of an Adverse Alternative Currency Letters of Credit since the date of issuance of the Letter of Credit or Green Letter of Credit if following such purchase remaining unused Commitments are insufficient to purchase participations in the remaining outstanding Letters of Credit or Green Letters of Credit and amounts deposited in the Cash Collateral Account shall be allocated first to cover shortfalls to the extent existing on the last date of actual deposit to the Cash Collateral Account, or if later, the most recent date of determination pursuant to Section 2.03(k), and second to any additional shortfalls (allocated pro rata among such shortfalls); provided that funds on deposit in the Cash Collateral Account, if any, may not be applied to fund a drawing on an Adverse Alternative Currency Letter of Credit to the extent those funds have been allocated to cover an exposure existing on the last date of deposit to the Cash Collateral Account if following the application a previously covered exposure is left without cash collateral.

SECTION 2.04. Fees.

a.The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee (the “Commitment Fee”) on the average daily unused amount of such Lender’s Commitment from the Restatement Effective Date in the case of each Bank, and from the effective date specified in the Assignment and Assumption pursuant to which it became a Lender, in the case of each other Lender, until the earlier to occur of the Termination Date applicable to the Commitment of such Lender and, in the case of the termination in whole of a Lender’s Commitment pursuant to Section 2.05, the date of such termination, payable on the last day of each March, June, September and December during such period, and on the Termination Date

applicable to the Commitment of such Lender at the rate per annum set forth below in the column identified by the Senior Debt Rating Level:

Senior Debt Rating Level	Level 1	Level 2	Level 3	Level 4	Level 5
Rate Per Annum
Commitment Fee	0.175%	0.225%	0.275%	0.350%	0.500%

Any change in the Commitment Fee will be effective as of the date on which S&P, Moody’s or Fitch, as the case may be, announces the applicable change in any rating that results in a change in the Senior Debt Rating Level.

a.The Borrower shall pay to the Administrative Agent for the account of each Lender a fee (the “LC Fee”) on the average daily amount of the sum of the undrawn stated amounts of all Letters of Credit outstanding on each such day, from the Restatement Effective Date in the case of each Bank, and from the effective date specified in the Assignment and Assumption pursuant to which it became a Lender, in the case of each other Lender, until the later to occur of the Termination Date applicable to the Commitment of such Lender and the date on which no Letters of Credit are outstanding, payable on the last day of each March, June, September and December during such period and such later date, at a rate equal at all times to (i) with regard to Letters of Credit, the Applicable Margin in effect from time to time for SOFR Advances and (ii) with regard to Green Letters of Credit, the Applicable Margin in effect from time to time for Green SOFR Advances. In addition, the Borrower shall pay to the LC Issuing Banks such fees for the issuance and maintenance of Letters of Credit and for drawings thereunder as may be separately agreed between the Borrower and the LC Issuing Banks.

a.The Borrower agrees to pay to each LC Issuing Bank that issues any Letter of Credit or Green Letter of Credit, a fronting fee in the amount separately agreed by the Borrower and such LC Issuing Bank (a “Fronting Fee”) and such other charges with respect to such Letter of Credit or Green Letter of Credit as are agreed upon with such LC Issuing Bank and as are customary.

a.The Borrower agrees to pay the other fees payable by it in such amounts and on such terms as set forth in the Fee Letter.

SECTION 2.05. Adjustment of the Commitments.

a.The Borrower shall have the right, without premium or penalty, upon at least three Business Days’ notice to the Administrative Agent, to terminate in whole or permanently reduce ratably in part the unused portions of the respective Commitments of the Lenders; provided that each partial reduction shall be in the aggregate amount of $1,000,000 or an integral multiple thereof; provided, further, that the Commitments may not be reduced to an amount that is less than the aggregate stated amount of outstanding Letters of Credit. Subject to the foregoing, any reduction of the Commitments to an amount that is less than $1,250,000,000 shall also result in a ratable reduction of the Fronting Commitment of each LC Issuing Bank. Once terminated, a Commitment may not be reinstated except as provided in Section 2.05(c). For the avoidance of doubt, upon any reduction of the combined Commitments under this Section 2.05 or otherwise, the Green Loan Sublimit shall be reduced on a dollar-for-dollar basis.

a.The Borrower may terminate in whole the unused amount of the Commitment of a Defaulting Lender upon not less than three Business Days’ prior notice to the Administrative Agent (which will promptly notify the Lenders thereof), and in such event the provisions of Section 2.19(b)(iii) will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts), provided that such termination will not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, any LC Issuing Bank or any Lender may have against such Defaulting Lender.

a.(i) On any date prior to the final Termination Date, but no more than once in each calendar quarter, the Borrower may increase the aggregate amount of the Commitments by minimum increments of $25,000,000 up to an aggregate amount not exceeding $250,000,000 for all such increases (any such increase, a “Commitment Increase”) by designating either (x) one or more

of the existing Lenders or one or more Affiliates thereof (each of which, in its sole discretion, may determine whether and to what degree to participate in such Commitment Increase) or (y) one or more other financial institutions (in the case of each of clauses (x) and (y), acceptable to the Administrative Agent and the LC Issuing Banks) that at the time agree, in the case of any such financial institution that is an existing Lender, to increase its Commitment (an “Increasing Lender”) and, in the case of any other financial institution or an Affiliate of a Lender (an “Additional Lender”), to become a party to this Agreement and provide its applicable Commitment. The sum of the increases in the Commitments of the Increasing Lenders pursuant to this Section 2.05(c) plus the Commitments of the Additional Lenders upon giving effect to the Commitment Increase shall not in the aggregate exceed the amount of the Commitment Increase. The Borrower shall provide notice of any proposed Commitment Increase pursuant to this Section 2.05(c) to the Administrative Agent, which shall promptly provide a copy of such notice to the Lenders. If any Lender or Affiliate thereof designated by the Borrower pursuant to this Section 2.05(c) shall not have responded to the requested Commitment Increase on or prior to the date specified by the Administrative Agent, such Lender or Affiliate thereof shall be deemed to have declined to increase or offer to provide its applicable Commitment. For the avoidance of doubt, in connection with any such Commitment Increase, the Green Loan Sublimit shall also be increased on a dollar-for-dollar basis on the applicable effective date of any Commitment Increase.

(ii) Any Commitment Increase shall become effective upon (A) the receipt by the Administrative Agent of an agreement in form and substance satisfactory to the Administrative Agent, signed by the Borrower, each Increasing Lender and each Additional Lender, setting forth the new Commitments of each such Increasing Lender and setting forth the agreement of each such Additional Lender to become a party to this Agreement and provide its applicable Commitment, and to be bound by all the terms and provisions hereof binding upon each Lender, (B) the funding by each Increasing Lender and each Additional Lender of the Advance(s) to be made by each such Lender described in paragraph (iii) below, (C) the receipt by the Administrative Agent of a certificate (the statements contained in which shall be true) of a duly authorized officer of the Borrower stating that both before and after giving effect to such Commitment Increase (1) no Event of Default or event that, with the giving of notice or passage of time or both, would be an Event of Default has occurred and is continuing or would result from such Commitment Increase and (2) all representations and warranties made by the Borrower in this Agreement are true and correct in all material respects (without duplication of materiality qualifications otherwise set forth in such representations and warranties) on and as of the date of such Commitment Increase, as though made on and as of such date, except for those made specifically as of another date, in which case such representations and warranties are true and correct as of such other date and (D) the receipt by the Administrative Agent of (1) certified copies of the resolutions of the Board of Directors (or the equivalent authorization) of the Borrower authorizing such Commitment Increase and the performance of this Agreement on and after the Commitment Increase, and of all documents evidencing other necessary corporate or other organizational action and governmental and regulatory approvals with respect to this Agreement and such Commitment Increase, (2) an opinion of the counsel of the Borrower, as to such matters related to the foregoing as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request and (3) such other documents as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request.

(iii) Upon the effective date of any Commitment Increase, the Borrower shall prepay the outstanding Borrowings (if any) in full, and shall simultaneously make new Borrowings hereunder in an amount equal to such prepayment, so that, after giving effect thereto, the Advances are held ratably by the Lenders in accordance with their respective Commitments (after giving effect to such Commitment Increase). Prepayments made under this paragraph (iii) shall not be subject to the notice requirements of Section 2.11, but shall be subject to Section 8.04(b).

(iv) Notwithstanding any provision contained herein to the contrary, from and after the date of any Commitment Increase and the making of any Advances on such date pursuant to paragraph (iii) above, all calculations and payments of the Commitment Fee and the LC Fee and of interest on the Advances shall take into account the actual Commitment of each Lender and, in the case of interest, the principal amount outstanding of each Advance made by such Lender during the relevant period of time.

SECTION 2.06 Repayment of Advances.

a. The Borrower shall repay the principal amount of each Advance made by each Lender on the Termination Date applicable to such Lender.

a.If at any time the aggregate principal amount of Outstanding Credits exceed the Commitments, the Borrower shall pay or prepay so much of the Borrowings as shall be necessary in order that the Outstanding Credits will not exceed the Commitments.

SECTION 2.07. Interest on Advances.

The Borrower shall pay interest on the unpaid principal amount of each Advance made by each Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum:

a. Base Rate Advances. If such Advance is a Base Rate Advance, a rate per annum equal at all times to the Base Rate in effect from time to time plus the Applicable Margin for such Base Rate Advance in effect from time to time, payable quarterly on the last day of each March, June, September and December, on the Termination Date applicable to such Lender and on each date such Base Rate Advance shall be Converted or paid in full.

a.SOFR Advances. If such Advance is a SOFR Advance, a rate per annum equal at all times during the Interest Period for such Advance to the sum of the Adjusted Term SOFR for such Interest Period plus the Applicable Margin for such SOFR Advance in effect from time to time, payable on the last day of each Interest Period for such SOFR Advance, on the Termination Date applicable to such Lender and on each date such SOFR Advance shall be Converted or paid in full and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period.

a. Green Base Rate Advances. If such Advance is a Green Base Rate Advance, a rate per annum equal at all times to the Base Rate in effect from time to time plus the Applicable Margin for such Green Base Rate Advance in effect from time to time, payable quarterly on the last day of each March, June, September and December, on the Termination Date applicable to such Lender and on each date such Green Base Rate Advance shall be Converted or paid in full.

a.Green SOFR Advances. If such Advance is a Green SOFR Advance, a rate per annum equal at all times during the Interest Period for such Advance to the sum of the Adjusted Term SOFR for such Interest Period plus the Applicable Margin for such Green SOFR Advance in effect from time to time, payable on the last day of each Interest Period for such Green SOFR Advance, on the Termination Date applicable to such Lender and on each date such Green SOFR Advance shall be Converted or paid in full and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period.

SECTION 2.08. [Reserved].

SECTION 2.09. Interest Rate Determination.

a.The Administrative Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.07(a) or 2.07(b).

a.Subject to Section 2.20, if, prior to the commencement of any Interest Period for a SOFR Advance or Green SOFR Advance and any Benchmark Transition Event pursuant to Section 2.20:

a.the Administrative Agent determines (which determination shall be conclusive absent manifest error) that “Adjusted Term SOFR” cannot be determined pursuant to the definition thereof; or

a.the Majority Lenders notify the Administrative Agent (with a copy to the Borrower) that the Majority Lenders have determined that Adjusted Term SOFR for any requested Interest Period with respect to a proposed SOFR Advance or Green SOFR Advance does not adequately and fairly reflect the cost to the Lenders of funding such SOFR Advance or Green SOFR Advance;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter and, (x) each SOFR Advance

will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, (y) each Green SOFR Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Green Base Rate Advance and (z) until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, the obligation of the Lenders to make or to Convert Advances into SOFR Advances or Green SOFR Advances (to the extent of the affected SOFR Advances, Green SOFR Advance or Interest Periods) shall be suspended and the Borrower may revoke any pending request for a SOFR Advance or Green SOFR Advance, or Conversion of a SOFR Advance or Green SOFR Advance (to the extent of the affected SOFR Advance, Green SOFR Advance or Interest Period) or, failing that, will be deemed to have converted such request into a request for an Advance of or a Conversion to a Base Rate Advance or Green Base Rate Advance, as applicable, in the amount specified therein.

SECTION 2.10. Conversion of Advances.

i.The Borrower may, upon notice given to the Administrative Agent not later than 1:00 P.M. (New York City time) on the third Business Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, on any Business Day, Convert all Advances of one Type made in connection with the same Borrowing into Advances of another Type; provided, however, that any Conversion of, or with respect to, any SOFR Advances or Green SOFR Advances into Advances of another Type shall be made on, and only on, the last day of an Interest Period for such SOFR Advances or Green SOFR Advances, unless the Borrower shall also reimburse the Lenders in respect thereof pursuant to Section 8.04(b) on the date of such Conversion. Each such notice of a Conversion (a “Notice of Conversion”) shall be transmitted by facsimile, in substantially the form of Exhibit A-2 hereto, specifying therein (i) the date of such Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into, or with respect to, SOFR Advances or Green SOFR Advances, the duration of the Interest Period for each such Advance.

i.If the Borrower shall fail to select the Type of any Advance or the duration of any Interest Period for any Borrowing comprising SOFR Advances or Green SOFR Advances in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01 and Section 2.10(a), or if any proposed Conversion of a Borrowing that is to comprise SOFR Advances or Green SOFR Advances upon Conversion shall not occur as a result of the circumstances described in subsection (c) below, or if an Event of Default has occurred and is continuing and SOFR Advances or Green SOFR Advances are outstanding, the Administrative Agent will forthwith so notify the Borrower and the Lenders, and such Advances will automatically, on the last day of the then existing Interest Period therefor, Convert into Base Rate Advances or Green Base Rate Advances, as applicable.

i.Each notice of Conversion given pursuant to subsection (a) above shall be irrevocable and binding on the Borrower. In the case of any Borrowing that is to comprise SOFR Advances or Green SOFR Advances upon Conversion, the Borrower agrees to indemnify each Lender against any loss, cost or expense incurred by such Lender if, as a result of the failure of the Borrower to satisfy any condition to such Conversion (including, without limitation, the occurrence of any Event of Default, or any event that would constitute an Event of Default with notice or lapse of time or both), such Conversion does not occur. The Borrower’s obligations under this subsection (c) shall survive the repayment of all other amounts owing to the Lenders and the Administrative Agent under this Agreement and the termination of the Commitments.

i.Notwithstanding any other provision of this Agreement to the contrary, the Borrower may not borrow SOFR Advances or Green SOFR Advances or Convert Advances resulting in SOFR Advances or Green SOFR Advances at any time an Event of Default has occurred and is continuing.

SECTION 2.11. Prepayments.

a.Voluntary. The Borrower may, upon notice received by the Administrative Agent prior to 12:00 noon (New York City time) on any Business Day, with respect to Base Rate Advances and Green Base Rate Advances, and upon at least two Business Days’ notice to the Administrative Agent,

with respect to SOFR Advances or Green SOFR Advances, stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal amounts of the Advances made as part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (i) each partial prepayment shall be in an aggregate principal amount not less than $1,000,000 or any integral multiple of $100,000 in excess thereof and (ii) in the case of any such prepayment of a SOFR Advance or Green SOFR Advance, the Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(b) on the date of such prepayment.

a.Mandatory. If, for any reason, (i) the Outstanding Credits exceed the combined Commitments or (ii) the Green Outstanding Credits exceed the Green Loan Sublimit, as in effect or as reduced or because of any limitation set forth in this Agreement or otherwise, the Borrower shall immediately prepay Advances and/or deposit cash in a Cash Collateral Account (without regard to any minimum amount) in an aggregate amount equal to such excess.

SECTION 2.12. Increased Costs.

a.Increased Costs Generally. If any Change in Law shall:

i.impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or any LC Issuing Bank;

i.subject any Credit Party to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition of “Excluded Taxes” and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

i.impose on any Lender or any LC Issuing Bank any other condition, cost or expense (other than Taxes) affecting this Agreement or Advances made by such Lender or any Letter of Credit or Green Letter of Credit or participation therein;

and the result of any of the foregoing shall be to (i) increase the cost to such Lender or such other Credit Party of making, converting to, continuing or maintaining any Advance or of maintaining its obligation to make any such Advance, or (ii) to increase the cost to such Lender, such LC Issuing Bank or such other Credit Party of participating in, issuing or maintaining any Letter of Credit or Green Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit or Green Letter of Credit), or (iii) to reduce the amount of any sum received or receivable by such Lender, LC Issuing Bank or other Credit Party hereunder (whether of principal, interest or any other amount), for clauses (i)-(iii) of the foregoing in each case in an amount deemed by such Credit Party to be material, then, upon request of such Lender, LC Issuing Bank or other Credit Party, the Borrower will pay to such Lender, LC Issuing Bank or other Credit Party, as the case may be, such additional amount or amounts as will compensate such Lender, LC Issuing Bank or other Credit Party, as the case may be, for such additional costs incurred or reduction suffered.

a.Capital Requirements. If any Lender or LC Issuing Bank determines that any Change in Law affecting such Lender or LC Issuing Bank or any Applicable Lending Office of such Lender or such Lender’s or LC Issuing Bank’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s or LC Issuing Bank’s capital or on the capital of such Lender’s or LC Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Advances made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by any LC Issuing Bank, to a level below that which such Lender or LC Issuing Bank or such Lender’s or LC Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or LC Issuing Bank’s policies and the policies of such Lender’s or LC Issuing Bank’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or LC Issuing Bank, as the case may be, such

additional amount or amounts as will compensate such Lender or LC Issuing Bank or such Lender’s or LC Issuing Bank’s holding company for any such reduction suffered.

a.Certificates for Increased Costs. A certificate of a Lender or LC Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or LC Issuing Bank or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section 2.12 and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender or LC Issuing Bank, as the case may be, the amount shown as due on any such certificate within 15 days after receipt thereof.

a.Delay in Requests. Failure or delay on the part of any Lender or LC Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or LC Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or LC Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender or LC Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s or LC Issuing Bank’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

SECTION 2.13. Illegality.

Notwithstanding any other provision of this Agreement, if any Lender shall notify the Administrative Agent that any Change in Law makes it unlawful, or any central bank or other Governmental Body asserts that it is unlawful, for any Lender or its Applicable Lending Office to perform its obligations hereunder to make SOFR Advances or Green SOFR Advances or to fund or maintain SOFR Advances or Green SOFR Advances hereunder, (i) the obligation of the Lenders to make, or to Convert Advances into, SOFR Advances or Green SOFR Advances shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist and (ii) the Borrower shall forthwith prepay in full all SOFR Advances and Green SOFR Advances of all Lenders then outstanding, together with interest accrued thereon, unless the Borrower, within five Business Days of notice from the Administrative Agent, Converts all SOFR Advances and Green SOFR Advances of all Lenders then outstanding into Advances of another Type in accordance with Section 2.10.

SECTION 2.14. Payments and Computations.

a.The Borrower shall make each payment hereunder not later than 12:00 noon (New York City time) on the day when due in Dollars to the Administrative Agent without defense, setoff or counterclaim at the Agent’s Account in same day funds. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest or Commitment Fees ratably (other than amounts payable pursuant to Section 2.02(c), 2.04, 2.12, 2.15, 2.18 or 8.04(b)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to any Lender or LC Issuing Bank to such Lender for the account of its Applicable Lending Office or to any LC Issuing Bank, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.07(c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.

a.The Borrower hereby authorizes each Lender, if and to the extent payment owed to such Lender is not made when due hereunder, to charge from time to time to the extent permitted by law against any or all of the Borrower’s accounts with such Lender any amount so due.

a.All computations of interest based on clause (i) of the definition of “Base Rate” shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on Term SOFR, the Federal Funds Rate or clause (ii) or (iii) of the definition of “Base Rate” and of the Commitment Fee and the LC Fee shall be made by the

Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest, Commitment Fee or LC Fee is payable. Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.

a.Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest, Commitment Fee or LC Fee, as the case may be; provided, however, if such extension would cause payment of interest on or principal of SOFR Advances or Green SOFR Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day.

a.Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate.

a.Notwithstanding anything to the contrary contained herein, any Advance or other amount payable by the Borrower hereunder that is not paid when due (whether at stated maturity, by acceleration or otherwise), and all Advances at any time an Event of Default described in Section 6.01(a) or Section 6.01(e) shall have occurred and be continuing, shall (to the fullest extent permitted by law) bear interest from the date when due until paid in full at a rate per annum equal at all times, in the case of each Advance, to the applicable interest rate in effect from time to time for such Advance plus 2% per annum, and, in the case of other amounts, to the Base Rate plus the Applicable Margin for Base Rate Advances plus 2% per annum, payable in each case upon demand.

SECTION 2.15. Taxes.

a.Defined Terms. For purposes of this Section 2.15, the term “Lender” includes each LC Issuing Bank and the term “applicable law” includes FATCA.

a.Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Body in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Credit Party receives an amount equal to the sum it would have received had no such deduction or withholding been made.

a.Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Body in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

a.Indemnification by the Borrower. The Borrower shall indemnify each Credit Party, within 30 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Credit Party or required to be withheld or deducted from a payment to such Credit Party and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant

Governmental Body. A certificate as to the amount of such payment or liability delivered to the Borrower by such Credit Party (with a copy to the Administrative Agent, unless the Administrative Agent is such Credit Party), or by the Administrative Agent on its own behalf or on behalf of any other Credit Party, shall be conclusive absent manifest error.

a.Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 8.07(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Body. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).

a.Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Body pursuant to this Section 2.15, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Body evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

a.Status of Lenders.

1.Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in paragraphs (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

1.Without limiting the generality of the foregoing,

a.any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

a.any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of

copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

i.in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

i.executed copies of IRS Form W-8ECI;

i.in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or W-8BEN-E; or

i.to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner;

a.any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

a.if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative

Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

a.Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.15 (including by the payment of additional amounts pursuant to this Section 2.15), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Body with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Body) in the event that such indemnified party is required to repay such refund to such Governmental Body. Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

a.FATCA. For purposes of determining withholding Taxes imposed under FATCA, from and after the Restatement Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Sections 1.1471-2(b)(2)(i) and 1.1471-2T(b)(2)(i).

a.Survival. Each party’s obligations under this Section 2.15 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.16. Sharing of Payments, Etc.

If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances made by it (other than pursuant to the Fee Letter, Section 2.02(c), 2.12, 2.15 or 8.04(b)) or, on account of the Borrower’s reimbursement obligations in respect of LC Outstandings in excess of its ratable share of payments on account of the Advances or on account of such reimbursement obligations obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Advances made by them and such reimbursement obligations as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them, provided, however, that (i) if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (A) the amount of such Lender’s required repayment to (A) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered and (ii) the provisions of this Section 2.16 shall not be construed to apply to (A) any

payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Advances or participations in LC Outstandings to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section 2.16 shall apply). The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.16 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.

SECTION 2.17. Noteless Agreement; Evidence of Indebtedness.

i.Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Advance made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

i.The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Advance made hereunder, the Type thereof and the Interest Period (if any) with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof.

i.The entries maintained in the accounts maintained pursuant to subsections (a) and (b) above shall be prima facie evidence of the existence and amounts of the obligations therein recorded; provided, however, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay such obligations in accordance with their terms.

i.Any Lender may request that its Advances be evidenced by one or more promissory notes. In such event, the Borrower shall prepare, execute and deliver to such Lender one or more promissory notes payable to such Lender and in a form acceptable to the Borrower and the Administrative Agent. Thereafter, the Advances evidenced by such note(s) and interest thereon shall at all times (including after any assignment pursuant to Section 8.07) be represented by notes from the Borrower, payable to the payee named therein or any assignee pursuant to Section 8.07, except to the extent that any such Lender or assignee subsequently returns any such notes for cancellation and requests that such Borrowings once again be evidenced as in subsections (a) and (b) above.

SECTION 2.18 Extension of Termination Date.

a.Starting with the date that is 60 days prior to the first anniversary of the Restatement Effective Date, so long as no Event of Default has occurred and is continuing, the Borrower may, by delivering an irrevocable written request to the Administrative Agent (the date of delivery of any such request being the “Borrower Extension Notice Date”), request that each Lender extend such Lender’s Termination Date for one year after the Termination Date then in effect for such Lender hereunder (the “Existing Termination Date,” and the effective date of any extension pursuant to this Section 2.18, the “Extension Date”). The Administrative Agent shall, upon its receipt of such request, promptly notify each Lender thereof, and request that each Lender promptly advise the Administrative Agent of its approval or rejection of such request. The Borrower may only exercise its right to request an extension of the Termination Date under this Section 2.18 during the term of this Agreement, on no more than two occasions during the term of this Agreement (in addition to the extension effected pursuant to Amendment No. 1), and in no event more frequently than once during any twelve-month period.

a.Upon receipt of such notification from the Administrative Agent, each Lender acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than ten (10) Business Days after the applicable Borrower Extension Notice Date (the date of such tenth Business Day, the “Lender Extension Notice Date”), notify the Administrative Agent in writing whether such Lender agrees to such extension (each Lender that determines to so extend its Existing Termination Date, an “Extending Lender”). Each Lender that determines not to so

extend its Existing Termination Date (a “Non-Extending Lender”) shall notify the Administrative Agent of such fact promptly after such determination (but in any event no later than the Lender Extension Notice Date) and any Lender that does not advise the Administrative Agent whether it agrees or does not agree to the extension shall be deemed to be a Non-Extending Lender. The Administrative Agent shall promptly notify the Borrower as to each Lender’s determination under this Section no later than one (1) Business Day after the Administrative Agent receives notice of such Lender’s determination.

a.If (and only if) the aggregate amount of the Commitments of the Extending Lenders plus the aggregate additional Commitments of the Additional Commitment Lenders (as defined below) as of such date shall be more than 50% of the aggregate amount of the Commitments in effect immediately prior to the applicable Extension Date, then, effective as of the applicable Extension Date, the Existing Termination Date of each Extending Lender and of each Additional Commitment Lender as of such date shall be extended to the date that is one year after such Existing Termination Date (except that, if such date is not a Business Day, such Existing Termination Date as so extended shall be the immediately preceding Business Day), and each Additional Commitment Lender as of such date that is not already a Lender shall thereupon become a “Lender” for all purposes of this Agreement. For purposes of this Section 2.18(c), each reference to an “Additional Commitment Lender” or the “Additional Commitment Lenders” shall be deemed to refer to such “Additional Commitment Lender” or “Additional Commitment Lenders,” in each case, as of such date of determination. Notwithstanding the foregoing, the extension of a Lender’s Existing Termination Date pursuant to this Section shall be effective with respect to such Lender on the Extension Date only if:

a.as of the Extension Date, the remaining term of this Agreement shall not exceed five years; and

a.the Administrative Agent shall have received the following, each dated such date and in form and substance satisfactory to the Administrative Agent:

(A) a certificate of a duly authorized officer of the Borrower to the effect that as of such Extension Date (1) no event has occurred and is continuing, or would result from the extension of the Termination Date, that constitutes an Event of Default or would, with the giving of notice or the lapse of time, or both, constitute an Event of Default and (2) the representations and warranties contained in Section 4.01 are correct in all material respects (without duplication of materiality qualifications otherwise set forth in such representations and warranties) on and as of such Extension Date, before and after giving effect to such extension, as though made on and as of such date, except for those made specifically as of another date, in which case such representations and warranties shall be true and correct as of such other date; provided that the representations and warranties contained in Sections 4.01(e) and 4.01(f) shall be deemed to refer to the most recent financial statements delivered pursuant to Section 5.01(c)(i) and (ii),

(B) certified copies of the resolutions of the Board of Directors of the Borrower authorizing such extension and the performance of this Agreement on and after such Extension Date, and of all documents evidencing other necessary organizational action and governmental and regulatory approvals with respect to this Agreement and such extension of the Termination Date,

(C) an opinion of the counsel of the Borrower, as to such matters related to the foregoing as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request; and

(D) such other documents as the Administrative Agent or the Lenders through the Administrative Agent may reasonably request.

a.The Borrower shall have the right, but shall not be obligated, on or before the applicable Existing Termination Date for any Non-Extending Lender to replace such Non-Extending Lender with, and add as “Lenders” under this Agreement in place thereof, one or more financial institutions that are Eligible Assignees (each, an “Additional Commitment Lender”) as provided in Section 8.07, each of which Additional Commitment Lenders shall have entered into an Assignment and Assumption (in accordance with and subject to the restrictions contained in Section 8.07, with the Borrower obligated to pay any applicable processing or recordation fee) with such Non-Extending Lender, pursuant to which such Additional Commitment Lenders shall, effective on or before the applicable Existing Termination Date for such Non-Extending Lender, assume a Commitment

(and, if any such Additional Commitment Lender is already a Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such date).

a.Upon the extension of the Termination Date in accordance with this Section 2.18, the Administrative Agent shall deliver to each Lender and LC Issuing Bank a revised Schedule I setting forth the Commitment of each Lender after giving effect to such extension, and such Schedule I shall replace the Schedule I in effect before the extension of the Termination Date.

a.Subject to subsection (c) above, the Commitment of any Non-Extending Lender that has not been replaced pursuant to subsection (d) above shall automatically terminate on its Existing Termination Date (without regard to any extension by any other Lender). On the date of any termination and/or assignment of a Non-Extending Lender’s Commitment pursuant to this Section 2.18, the Borrower shall pay or prepay to such Non-Extending Lender the aggregate outstanding principal amount of all Advances of such Lender with respect to such termination of its Commitment, together with accrued interest to the date of such prepayment on the principal amount prepaid and all other fees and other amounts due and payable to such Lender hereunder. In the case of any such prepayment of a SOFR Advance or Green SOFR Advance, the Borrower shall be obligated to reimburse each such Lender in respect thereof pursuant to Section 8.04(b).

a.Each LC Issuing Bank may, in its sole discretion, elect not to serve in such capacity following any extension of the Termination Date; provided that (i) the Borrower and the Administrative Agent may appoint a replacement for any such resigning LC Issuing Bank, and (ii) the extension of the Termination Date may become effective without regard to whether such replacement is found.

SECTION 2.19 Defaulting Lenders.

a.Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such period pursuant to Sections 2.04(a) and 2.04(b) (without prejudice to the rights of the Non-Defaulting Lenders in respect of such fees), provided that (i) to the extent that all or a portion of the LC Outstandings of such Defaulting Lender is reallocated to the Non-Defaulting Lenders pursuant to Section 2.19(b), such fees that would have accrued for the benefit of such Defaulting Lender will instead accrue for the benefit of and be payable to such Non-Defaulting Lenders, pro rata in accordance with their respective Percentages, and (ii) to the extent that all or any portion of such LC Outstandings cannot be so reallocated, such fees will instead accrue for the benefit of and be payable to the LC Issuing Banks, as applicable (and the pro rata payment provisions of Section 2.16 will automatically be deemed adjusted to reflect the provisions of this Section).

a.If a Lender becomes, and during the period it remains, a Defaulting Lender, the following provisions shall apply with respect to any LC Outstandings held by such Defaulting Lender:

a.The LC Outstandings held by such Defaulting Lender will, subject to the limitation in the first proviso below, automatically be reallocated (effective on the day such Lender becomes a Defaulting Lender) among the Non-Defaulting Lenders pro rata in accordance with their respective Percentages; provided that (A)(x) the sum of each Non-Defaulting Lender’s Outstanding Credits (after giving effect to such reallocation) may not in any event exceed the Commitment of such Non-Defaulting Lender as in effect at the time of such reallocation and (y) the sum of all Non-Defaulting Lender’s Outstanding Credits (after giving effect to such reallocation) may not in any event exceed the total Commitments of all Non-Defaulting Lenders as in effect at the time of such reallocation and (B) subject to Section 8.20, neither such reallocation nor any payment by a Non-Defaulting Lender pursuant thereto will constitute a waiver or release of any claim the Borrower, the Administrative Agent, any LC Issuing Bank or any other Lender may have against such Defaulting Lender or cause such Defaulting Lender to be a Non-Defaulting Lender;

a.to the extent that any portion (the “unreallocated portion”) of the Defaulting Lender’s LC Outstandings cannot be so reallocated, whether by reason of the first proviso in clause (i) above or otherwise, the Borrower will, not later than three Business Days after demand by the Administrative Agent (at the direction of an LC Issuing Bank), (A) Cash Collateralize the obligations of the Borrower to the LC Issuing Banks in respect of such LC Outstandings in an amount at least equal to the aggregate amount of the unreallocated portion of such LC Outstandings, or (B) make other arrangements satisfactory to the Administrative Agent and to the

LC Issuing Banks, in their sole discretion, to protect them against the risk of non-payment by such Defaulting Lender; and

a.any amount paid by the Borrower or otherwise received by the Administrative Agent for the account of a Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity payments or other amounts) will not be paid or distributed to such Defaulting Lender, but will instead be retained by the Administrative Agent in a segregated account until (subject to Section 2.19(f)) the termination of the Commitments and payment in full of all obligations of the Borrower hereunder and will be applied by the Administrative Agent, to the fullest extent permitted by law, to the making of payments from time to time in the following order of priority: first to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent under this Agreement, second to the payment of any amounts owing by such Defaulting Lender to the LC Issuing Banks (pro rata as to the respective amounts owing to each of them) under this Agreement, third to the payment of post-default interest and then current interest due and payable to the Lenders hereunder other than Defaulting Lenders, ratably among them in accordance with the amounts of such interest then due and payable to them, fourth to the payment of fees then due and payable to the Non-Defaulting Lenders hereunder, ratably among them in accordance with the amounts of such fees then due and payable to them, fifth to pay principal and unreimbursed amounts then due and payable under Letters of Credit to the Non-Defaulting Lenders hereunder ratably in accordance with the amounts thereof then due and payable to them, sixth to the ratable payment of other amounts then due and payable to the Non-Defaulting Lenders, and seventh after the termination of the Commitments and payment in full of all obligations of the Borrower hereunder, to pay amounts owing under this Agreement to such Defaulting Lender or as a court of competent jurisdiction may otherwise direct.

a.In furtherance of the foregoing, if any Lender becomes, and during the period it remains, a Defaulting Lender or a Potential Defaulting Lender, each LC Issuing Bank is hereby authorized by the Borrower (which authorization is irrevocable and coupled with an interest) to give, in its discretion, through the Administrative Agent, Notices of Borrowing pursuant to Section 2.02(a) in such amounts and in such times as may be required to (i) reimburse amounts due and payable under Letters of Credit and/or (ii) Cash Collateralize the obligations of the Borrower in respect of outstanding Letters of Credit in an amount at least equal to the aggregate amount of the obligations (contingent or otherwise) of such Defaulting Lender or Potential Defaulting Lender in respect of such Letter of Credit or Green Letter of Credit.

a.In addition to the other conditions precedent herein set forth, if any Lender becomes, and during the period it remains, a Defaulting Lender or a Potential Defaulting Lender, no LC Issuing Bank will be required to issue any Letter of Credit or Green Letter of Credit or to amend any outstanding Letter of Credit or Green Letter of Credit in a manner that constitutes an Extension of Credit, unless such LC Issuing Bank is satisfied that any exposure that would result therefrom is eliminated or fully covered by the Commitments of the Non-Defaulting Lenders or by Cash Collateralization or a combination thereof satisfactory to such LC Issuing Bank.

a.If any Lender becomes, and during the period it remains, a Defaulting Lender or a Potential Defaulting Lender, if any Letter of Credit or Green Letter of Credit is at the time outstanding, any LC Issuing Bank may (except, in the case of a Defaulting Lender, to the extent the Commitments have been fully reallocated pursuant to Section 2.19(b)), by notice to the Borrower and such Defaulting Lender or Potential Defaulting Lender through the Administrative Agent, require the Borrower to Cash Collateralize the obligations of the Borrower to such LC Issuing Bank in respect of such Letter of Credit or Green Letter of Credit in amount at least equal to the aggregate amount of the unreallocated obligations (contingent or otherwise) of such Defaulting Lender or such Potential Defaulting Lender to be applied pro rata in respect thereof, or to make other arrangements satisfactory to the Administrative Agent and to such LC Issuing Bank in their sole discretion to protect them against the risk of non-payment by such Defaulting Lender or Potential Defaulting Lender.

a.If the Borrower, the Administrative Agent and the LC Issuing Banks agree in writing that a Lender is no longer a Defaulting Lender or a Potential Defaulting Lender, as the case may be, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any amounts then held in the segregated account referred to in Section 2.19(b)), such Lender will, to the extent applicable, purchase at par such portion of outstanding Advances

of the other Lenders and/or make such other adjustments as the Administrative Agent may determine to be necessary to cause the Outstanding Credits held by the Lenders to be on a pro rata basis in accordance with their respective Percentages, whereupon such Lender will cease to be a Defaulting Lender or Potential Defaulting Lender and will be a Non-Defaulting Lender (and such Outstanding Credits held by each Lender will automatically be adjusted on a prospective basis to reflect the foregoing); provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender or Potential Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender or Potential Defaulting Lender.

SECTION 2.20. Benchmark Replacement Setting.

Notwithstanding anything to the contrary herein or in any other Loan Document:

i.Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 2.20(a)(i) will occur prior to the applicable Benchmark Transition Start Date.

i.Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

i.Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will notify the Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 2.20(d) and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.20, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.20.

i.Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any

Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

i.Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of SOFR Advances or Green SOFR Advances to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances or Green Base Rate Advances, as applicable. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.

Article III. CONDITIONS OF EXTENSIONS OF CREDIT

SECTION 3.01. Conditions Precedent to Effectiveness.

The effectiveness of this Agreement and the obligation of each Lender and each LC Issuing Bank to make its initial Extension of Credit hereunder on the Restatement Effective Date is subject to satisfaction of each the following conditions precedent on or before such date:

i.The Administrative Agent shall have received the following on or before the Restatement Effective Date, each dated such date (except for the Disclosure Documents), in form and substance satisfactory to the Administrative Agent and (except for the notes described in paragraph (i)) with one copy for each Lender and each LC Issuing Bank:

1.(A) This Agreement, duly executed by each of the parties hereto, and (B) a promissory note payable to each Lender that requests one pursuant to Section 2.17, duly completed and executed by the Borrower;

1.Certified copies of the resolutions of the Board of Directors of the Borrower approving this Agreement, and of all documents evidencing other necessary corporate action with respect to this Agreement;

1.A certificate of the Secretary or an Assistant Secretary of the Borrower certifying (A) the names and true signatures of the officers of the Borrower authorized to sign this Agreement and the other documents to be delivered hereunder; (B) that attached thereto are true and correct copies of the organizational documents of the Borrower, in each case as in effect on the Restatement Effective Date; and (C) that attached thereto are true and correct copies of all governmental and regulatory authorizations and approvals (if any) required for the due execution, delivery and performance by the Borrower of this Agreement;

1.Copies of all the Disclosure Documents (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (iv) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Restatement Effective Date);

1.One or more favorable opinions of counsel (including the opinion of in-house counsel and special New York counsel) for the Borrower in form and substance satisfactory to the Administrative Agent; and

1.At least three (3) Business Days prior to the Restatement Effective Date, if the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership

Regulation, the Borrower must deliver a Beneficial Ownership Certification in relation to Borrower.

i.The Borrower shall have paid to the Lenders all accrued and unpaid fees pursuant to Section 2.04 of the Existing Credit Agreement, and any other amounts then due and owing by the Borrower to the Lenders pursuant to the Existing Credit Agreement.

i.The Administrative Agent shall have received the fees payable pursuant to the Fee Letter.

SECTION 3.02. Conditions Precedent to Each Extension of Credit.

The obligation of each Lender to make an Advance on the occasion of each Borrowing and of each LC Issuing Bank to issue, amend, extend or renew a Letter of Credit or Green Letter of Credit, in each case, as part of an Extension of Credit shall be subject to the further conditions precedent that on the date of such Extension of Credit:

a.The Administrative Agent and the relevant LC Issuing Bank, if applicable, shall have received from the Borrower a notice requesting such Extension of Credit as required by Section 2.02 or 2.03, as applicable.

a.The following statements shall be true (and each of the giving of the applicable Notice of Borrowing or Request for Issuance and the acceptance by the Borrower of any proceeds of a Borrowing or the issuance of such Letter of Credit or Green Letter of Credit shall constitute a representation and warranty by the Borrower that on the date of such Extension of Credit such statements are true):

i.The representations and warranties contained in Section 4.01 (excluding those contained in the last sentence of subsection (e) and in subsections (f) and (n) thereof) are true and correct on and as of the date of such Extension of Credit, before and after giving effect to such Extension of Credit and to the application of the proceeds therefrom, as though made on and as of such date; provided that the representations and warranties contained in Section 4.01(e) shall be deemed to refer to the most recent financial statements delivered pursuant to Section 5.01(c)(i) and (ii), as applicable; and

i.No event has occurred and is continuing, or would result from such Extension of Credit or from the application of the proceeds therefrom or the issuance or amendment of any Letter of Credit or Green Letter of Credit in connection therewith, that constitutes an Event of Default or would constitute an Event of Default with notice or lapse of time or both.

a.The Administrative Agent shall have received such other certifications, opinions, financial or other information, approvals and documents as the Administrative Agent, any LC Issuing Bank or any Lender may reasonably request through the Administrative Agent.

a.Each Letter of Credit or Green Letter of Credit shall be in form and substance acceptable to the LC Issuing Bank issuing such Letter of Credit or Green Letter of Credit.

Article IV. REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrower.

The Borrower represents and warrants as follows:

a.The Borrower is (i) duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and (ii) duly qualified to do business as a foreign organization in each jurisdiction in which the nature of the business conducted or the property owned, operated or leased by it requires such qualification, except where failure to so qualify would not materially adversely affect its business, condition (financial or otherwise), operations, properties or prospects.

a.The execution, delivery and performance by the Borrower of each Loan Document to which it is, or is to become, a party, are within the Borrower’s organizational powers, have been duly authorized by all necessary organizational action and do not contravene (i) the Borrower’s organizational documents, (ii) law applicable to the Borrower or its properties, or (iii) any contractual or legal restriction binding on or affecting the Borrower or its properties, in the case of clauses (ii) and (iii) above, except where such failure would result in a Material Adverse Effect.

a.No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Borrower of this Agreement (including obtaining any Extensions of Credit under this Agreement) or any other Loan Document to which it is, or is to become, a party.

a.This Agreement and the other Loan Documents to which it is, or is to become, a party have been or will be (as the case may be) duly executed and delivered by it, and this Agreement is, and upon execution and delivery thereof each other Loan Document will be, the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, subject, however, to any applicable bankruptcy, reorganization, rearrangement, moratorium or similar laws affecting generally the enforcement of creditors’ rights and remedies and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

a.The consolidated financial statements of the Borrower and its Subsidiaries as of December 31, 2021, and for the year ended on such date, as set forth in the Borrower’s Annual Report on Form 10-K for the fiscal year ended on such date, as filed with the SEC, and the consolidated financial statements of the Borrower and its Subsidiaries as of June 30, 2022, and for the fiscal quarter ended on such date, as set forth in the Borrower’s Quarterly Report on Form 10-Q for the fiscal quarter ended on such date, as filed with the SEC, copies of each of which have been furnished to each Bank, fairly present the consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the consolidated results of the operations of the Borrower and its Subsidiaries for the period ended on such date, in accordance with GAAP, subject, in the case of such financial statements for the fiscal quarter ended June 30, 2022, to year-end adjustments and the absence of detailed footnotes. Except as disclosed in the Disclosure Documents, since December 31, 2021, there has been no material adverse change in the financial condition or operations of the Borrower.

a.Except as disclosed in the Disclosure Documents, there is no pending or threatened action or proceeding affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect. There has been no change in any matter disclosed in such filings that could reasonably be expected to result in such a Material Adverse Effect.

a.[reserved].

a.The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Extension of Credit will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.

a.The Borrower is not required to register as an “investment company” under the Investment Company Act of 1940, as amended.

a.Except as could not reasonably be expected to result in a Material Adverse Effect, no ERISA Termination Event has occurred, or is reasonably expected to occur, with respect to any ERISA Plan.

a.[reserved]

a.Except as could not reasonably be expected to result in a Material Adverse Effect, the Borrower has not incurred, and does not reasonably expect to incur, any withdrawal liability under ERISA to any Multiemployer Plan.

a.All information heretofore furnished by the Borrower to the Administrative Agent, any LC Issuing Bank or any Lender for purposes of or in connection with any Loan Document or any transaction contemplated hereby or thereby is, and all such information hereafter furnished by the Borrower to the Administrative Agent, any LC Issuing Bank or any Lender will be, true and accurate in all material respects on the date as of which such information is stated or certified in the light of the circumstances under which such information was provided (as modified or supplemented by other information so furnished, when taken together as a whole and with the Disclosure Documents); provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based on assumptions believed to be reasonable at the time, it being recognized by the Lenders and LC Issuing Banks that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results. The Borrower has disclosed to the Lenders and LC Issuing Banks, in the Disclosure Documents or otherwise in writing, any and all facts specific to the Borrower and its Subsidiaries and known as of the date hereof to a responsible officer of the Borrower that could reasonably be expected to result in a Material Adverse Effect, which materially and adversely affect or may affect (to the extent the Borrower can now reasonably foresee), the business, operations or financial condition of the Borrower and its Consolidated Subsidiaries, taken as a whole, or the ability of the Borrower to perform its obligations under the Loan Documents.

a.As of the date delivered, the information included in the Beneficial Ownership Certification, if any, is true and correct in all respects.

a.The Borrower has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. None of (a) the Borrower or any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower, or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. The Borrower and its Subsidiaries are in compliance in all material respects with Anti-Corruption Laws and applicable Sanctions.

a.[reserved].

a.The Borrower has filed all federal, state and other Tax returns and reports required to be filed, and have paid all federal, state and other Taxes, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable, except (a) Taxes that that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are being maintained in accordance with GAAP or (b) to the extent that the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Article V. COVENANTS OF THE BORROWER

SECTION 5.01. Affirmative Covenants.

So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment or any Letter of Credit or Green Letter of Credit shall remain outstanding hereunder, the Borrower will, unless the Majority Lenders shall otherwise consent in writing:

a.Keep Books; Existence; Maintenance of Properties; Compliance with Laws; Insurance; Taxes; Inspection Rights.

i.keep, proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities;

i.except as otherwise permitted by Section 5.02(c), preserve and keep in full force and effect its existence and preserve and keep in full force and effect its licenses, rights and franchises to the extent necessary to carry on its business; provided, however, that the Borrower may change its form of organization from a corporation to a limited liability company or from a limited liability company to a corporation if (A) such change shall not affect any obligations of the Borrower under the Loan Documents and (B) the Borrower

shall deliver to the Administrative Agent (x) prompt notice of such change, (y) certified true and correct copies of the organizational documents of the Borrower after giving effect to such change and (z) all information requested by the Administrative Agent or any Lender in order to comply with its obligations under the Patriot Act referred to in Section 8.14 and the Beneficial Ownership Regulation;

i.maintain and keep, or cause to be maintained and kept, all property useful and necessary in its business in good working order and condition, except: (A) for ordinary wear and tear or (B) where failure to do so would not result in a Material Adverse Effect;

i.comply, and cause its Subsidiaries to comply, with all applicable laws, rules, regulations and orders, except to the extent that the failure to comply could not reasonably be expected to result in a Material Adverse Effect, such compliance to include, without limitation, paying before the same become delinquent all Taxes, assessments and governmental charges imposed upon it or its property, except to the extent being contested in good faith by appropriate proceedings diligently conducted and adequate reserves for the payment thereof in accordance with GAAP are being maintained, and compliance with ERISA and Environmental Laws;

i.maintain insurance with responsible and reputable insurance companies or associations or through its own program of self-insurance in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which it operates and furnish to the Administrative Agent, within a reasonable time after written request therefor, such information presented in reasonable detail as to the insurance carried as any Lender, through the Administrative Agent, may reasonably request;

i.pay and discharge its obligations and liabilities in the ordinary course of business, except (A) to the extent that such obligations and liabilities are being contested in good faith by appropriate proceedings or (B) where failure to do so would not result in a Material Adverse Effect; and

i.from time to time upon reasonable notice (but no more frequently than once per calendar year unless a default or Event of Default shall have occurred and be continuing), permit or arrange for the Administrative Agent, the LC Issuing Banks, the Lenders and their respective agents and representatives to inspect the records and books of account of the Borrower and its Subsidiaries during regular business hours; provided, that neither the Borrower nor any Subsidiary shall be required to disclose to any Lender or its agents or representatives any information which is subject to the attorney-client privilege or attorney work-product privilege properly asserted by the applicable Person to prevent the loss of such privilege in connection with such information or which is prevented from disclosure pursuant to a confidentiality agreement with third parties or which otherwise is prohibited from being disclosed by applicable law.

a.Use of Proceeds. (a) Use the proceeds of the Borrowings and the Letters of Credit for general corporate purposes; and (b) use the proceeds of the Green Base Rate Advances and Green SOFR Advances made, and the Green Letters of Credit issued under, this Agreement solely for investments in, and working capital, capital expenditures and other general corporate purposes relating to, present and future solar, wind, hydro, storage battery and other renewable energy projects, installations, improvements and businesses and purposes reasonably related or ancillary thereto.

a.Reporting Requirements. Furnish to the Lenders:

a.as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of the Borrower, (A) consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such quarter, (B) consolidated statements of income and retained earnings of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such quarter and (C) consolidated statements of cash flows of the Borrower and its Subsidiaries for such fiscal quarter, and a statement of cash flow distributions to the Borrower by project for the period commencing at the end of the previous

fiscal year and ending with the end of such quarter, each certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;

a.as soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the annual report for such year for the Borrower and its Subsidiaries, containing consolidated financial statements for such year, including a statement of cash flow distributions to the Borrower by project for such year, certified without qualification by Ernst & Young LLP (or such other nationally recognized public accounting firm selected by the Borrower), and certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;

a.concurrently with the delivery of the financial statements specified in clauses (i) and (ii) above, a certificate of the chief financial officer, treasurer, assistant treasurer or controller of the Borrower, (A) stating that no Event of Default has occurred and is continuing, or if an Event of Default has occurred and is continuing, a statement setting forth details of such Event of Default, as the case may be, and the action that the Borrower has taken and proposes to take with respect thereto and (B) setting forth in a true and correct manner, the calculation of the ratio contemplated by Section 5.02(b) hereof, as of the date of the most recent financial statements accompanying such certificate, to show the Borrower’s compliance with or the status of the financial covenant contained in Section 5.02(b) hereof;

a.within five days after the Borrower has knowledge of the occurrence of each Event of Default and each event that, with the giving of notice or lapse of time or both, would constitute an Event of Default, continuing on the date of such statement, a statement of the duly authorized officer of the Borrower setting forth details of such Event of Default or event, as the case may be, and the actions that the Borrower has taken and proposes to take with respect thereto;

a.promptly after the sending or filing thereof, copies of all reports that the Borrower sends to any of its securities holders, and copies of all reports and registration statements which the Borrower files with the SEC or any national securities exchange pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended;

a.as soon as possible and in any event within 30 days after the Borrower knows or has reason to know that any ERISA Termination Event with respect to any ERISA Plan has occurred, a statement of a duly authorized officer of the Borrower describing such ERISA Termination Event and the action, if any, that the Borrower proposes to take with respect thereto;

a.promptly and in any event within ten Business Days after receipt thereof by the Borrower from the PBGC, copies of each notice received by the Borrower of the PBGC’s intention to terminate any ERISA Plan or to have a trustee appointed to administer any ERISA Plan; and

a.such other information respecting the condition or operations, financial or otherwise, of the Borrower or any of its Subsidiaries as the Administrative Agent or any LC Issuing Bank or any Lender through the Administrative Agent may from time to time reasonably request.

The financial statements and reports described in paragraphs (i), (ii) and (vi) above will be deemed to have been delivered hereunder if such documents are publicly available on EDGAR or on the Borrower’s website no later than the date specified for delivery of the same under paragraph (i), (ii) or (vi), as applicable, above. If any financial statements or report described in (i) and (ii) above is due on a date that is not a Business Day, then such financial statements or report shall be delivered on the next succeeding Business Day.

a.Compliance with Anti-Corruption Laws and Sanctions. Maintain in effect and enforce policies and procedures designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

SECTION 5.02. Negative Covenants.

So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment or any Letter of Credit or Green Letter of Credit shall remain outstanding hereunder, the Borrower will not, without the written consent of the Majority Lenders:

a.Liens, Etc. Create or suffer to exist, or permit any Subsidiary to create or suffer to exist, any Lien upon or with respect to any properties (including, without limitation, any shares of any class of equity security of any of its Significant Subsidiaries), in each case to secure or provide for the payment of Debt, other than: (i) Liens in existence on the Restatement Effective Date and, in the case of Liens securing obligations in excess of $25,000,000, described on Schedule 5.02(a); (ii) Liens for taxes, assessments or governmental charges or levies to the extent not past due, or which are being contested in good faith in appropriate proceedings diligently conducted and for which the Borrower has provided adequate reserves for the payment thereof in accordance with GAAP; (iii) pledges or deposits in the ordinary course of business to secure obligations under worker’s compensation laws or similar legislation; (iv) other pledges or deposits in the ordinary course of business (other than for borrowed monies) that, in the aggregate, are not material to the Borrower; (v) purchase money mortgages or other liens or purchase money security interests upon or in any property acquired or held by the Borrower in the ordinary course of business to secure the purchase price of such property or to secure indebtedness incurred solely for the purpose of financing the acquisition of such property; (vi) Liens imposed by law such as materialmen’s, mechanics’, carriers’, workers’ and repairmen’s Liens and other similar Liens arising in the ordinary course of business for sums not yet due or currently being contested in good faith by appropriate proceedings diligently conducted; (vii) Liens in respect of Debt of Subsidiaries that is not Recourse Debt; (viii) attachment, judgment or other similar Liens arising in connection with court proceedings, provided that such Liens, in the aggregate, shall not exceed $50,000,000 at any one time outstanding; (ix) other Liens not otherwise referred to in the foregoing clauses (i) through (viii) above, provided that such Liens, in the aggregate, shall not secure obligations in excess of $100,000,000 at any one time; (x) Liens created for the sole purpose of extending, renewing or replacing in whole or in part Debt secured by any Lien referred in the foregoing clauses (i) through (vii) above, provided that the principal amount of indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement and that such extension, renewal or replacement, as the case may be, shall be limited to all or a part of the property or Debt that secured the Lien so extended, renewed or replaced (and any improvements on such property); (xi) Liens on rights or other property purported to be transferred to the issuer of Eligible Securitization Bonds or another entity to secure Eligible Securitization Bonds; provided, further, that no Lien permitted under the foregoing clauses (i) through (xi) shall be placed upon any shares of any class of equity security of any Significant Subsidiary unless the obligations of the Borrower to the Lenders and the LC Issuing Banks hereunder are simultaneously and ratably secured by such Lien pursuant to documentation satisfactory to the Lenders; or (xii) Liens securing up to $1.6 billion in principal amount of the Initial Notes (as defined in the AES Indenture as in effect on the date hereof) upon and following the occurrence of any Reversion Date (as defined in the AES Indenture as in effect on the date hereof).

a.Financial Covenant. Permit the Recourse Debt to Cash Flow Ratio as of the last day of each March, June, September and December to be more than 5.75 to 1.00.

a.Mergers, Etc. Merge with or into or consolidate with or into any other Person, except that the Borrower may merge with any other Person, provided that, immediately after giving effect to any such merger, (i) the Borrower is the surviving Person or the merger is to effect a change in the Borrower’s form of organization permitted by the proviso in Section 5.01(a)(ii), (ii) no event shall have occurred and be continuing that constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both, and (iii) the Borrower shall not allow its property to be subject to any Lien which would not be permissible with respect to it or its property under this Agreement on the date of such transaction.

a.Disposition of Assets. Not, nor permit any of its Subsidiaries to, convey, transfer or otherwise dispose of a material portion of its assets (other than (u) conveyances, transfers and dispositions to any of its Subsidiaries, (v) any conveyance, sale, lease, transfer or other disposition of inventory, in any case in the ordinary course of business, (w) leases and other leases, licenses, subleases or sublicenses, in each case, granted to others in the ordinary course of business and which do not materially interfere with the business of the Borrower and its Subsidiaries taken as a whole, (x) any conveyance, sale, lease, transfer or other disposition of obsolete or worn out assets or assets no longer useful in the business of the Borrower and its Subsidiaries, (y) licenses of intellectual property entered into in the ordinary course of business and (z) any conveyance, sale, transfer or other disposition of cash and/or cash equivalents) if a default or an Event of Default occurs as a result of such conveyance, transfer or disposition. The Borrower

shall not in any event, in one or a series of related transactions, convey, transfer or otherwise dispose of 50% or more of its total assets.

a.No Violation of Anti-Corruption Laws or Sanctions. Request any Borrowing or Letter of Credit or Green Letter of Credit, or use or permit any of its Subsidiaries or its or their respective directors, officers, employees and agents to use any Letter of Credit or Green Letter of Credit or the proceeds of any Borrowing or Letter of Credit or Green Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

Article VI. EVENTS OF DEFAULT AND REMEDIES

SECTION 6.01. Events of Default.

Each of the following events shall constitute an “Event of Default” hereunder:

a.The Borrower shall fail to pay any principal of any Advance or any reimbursement obligation in respect of a Letter of Credit or Green Letter of Credit when the same becomes due and payable, or shall fail to pay interest thereon or any other amount payable under this Agreement within five (5) Business Days after the same becomes due and payable; or

a.Any representation or warranty made by the Borrower herein or by the Borrower (or any of its officers) in connection with this Agreement shall prove to have been incorrect or misleading in any material respect when made or deemed made; or

a.The Borrower shall fail to perform or observe (i) any term, covenant or agreement contained in Section 2.19(b)(ii)(A), 5.01(b) or 5.02 or (ii) any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if the failure to perform or observe such other term, covenant or agreement shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or

a.The Borrower or any Significant Subsidiary shall fail to pay any principal of or premium or interest on any Debt of the Borrower or such Significant Subsidiary that is outstanding in a principal amount in excess of $200,000,000 in the aggregate (but excluding Debt hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or

a.The occurrence of any event or the existence of any condition under any agreement or instrument relating to any Debt of a Significant Subsidiary that is outstanding in a principal amount in excess of $200,000,000 in the aggregate, which occurrence or event results in the declaration (after the applicable grace period, if any) of such Debt being due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or

a.The Borrower or any Significant Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any Significant Subsidiary seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Borrower or any Significant Subsidiary shall take any corporate or other organizational action to authorize or to consent to any of the actions set forth above in this subsection (f); or

a.Any judgment or order for the payment of money in excess of $200,000,000 shall be rendered against the Borrower or any Significant Subsidiary and such judgment shall not have been vacated or discharged or such judgment or execution thereof shall, for a period of 60 days, failed to be stayed (pending appeal or otherwise); or

a.(i) An ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall fail to maintain the minimum funding standards required by Section 412 of the Code for any plan year or a waiver of such standard is sought or granted under Section 412(d) of the Code, or (ii) an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower is, shall have been or will be terminated or the subject of termination proceedings under ERISA, or (iii) the Borrower or any ERISA Affiliate of the Borrower has incurred or will incur a liability to or on account of an ERISA Plan under Section 4062, 4063 or 4064 of ERISA, or (iv) any ERISA Termination Event with respect to an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall have occurred, and in the case of any event described in clauses (i) through (iv), such event could reasonably be expected to result in a Material Adverse Effect; or

a.(i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Borrower (or other securities convertible into such securities) representing more than 40.0% of the combined voting power of all securities of the Borrower entitled to vote in the election of directors; or (ii) during any period of twelve consecutive calendar months, individuals who were directors of the Borrower on the first day of such period (or who were appointed or nominated for election as directors of the Borrower by at least a majority of the individuals who were directors on the first day of such period) shall cease to constitute a majority of the Board of Directors of the Borrower.

SECTION 6.02. Remedies.

If any Event of Default shall occur and be continuing, then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances and the obligation of each LC Issuing Bank to issue Letters of Credit to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower or any Significant Subsidiary under the Federal Bankruptcy Code, (A) the obligation of each Lender to make Advances and the obligation of each LC Issuing Bank to issue Letters of Credit shall automatically be terminated and (B) the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

SECTION 6.03. Cash Collateral Account.

Notwithstanding anything to the contrary contained herein, no notice given or declaration made by the Administrative Agent pursuant to this Article VI shall affect (i) the obligation of any LC Issuing Bank to make any payment under any Letter of Credit or Green Letter of Credit in accordance with the terms of such Letter of Credit or Green Letter of Credit or (ii) the obligations of each Lender in respect of each such Letter of Credit or Green Letter of Credit; provided, however, that if an Event of Default has occurred and is continuing, the Administrative Agent shall at the request, or may with the consent, of the Majority Lenders, upon notice to the Borrower, require the Borrower to deposit with the Administrative Agent an amount in the cash collateral account (the “Cash Collateral Account”) described below equal to the LC Outstandings on such date; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower or any Significant Subsidiary under the Federal Bankruptcy Code, such deposit requirement shall be automatically due and payable. Such Cash Collateral Account shall at all times be free and clear of all rights or claims of third parties. The Cash Collateral Account shall be maintained with the Administrative Agent in the name of, and under the sole dominion and control of, the Administrative Agent, and amounts deposited in the Cash Collateral Account shall bear interest at a rate equal to the rate generally offered by Citibank for deposits equal to the amount deposited by the Borrower

in the Cash Collateral Account, for a term to be determined by the Administrative Agent, in its sole discretion. The Borrower hereby grants to the Administrative Agent for the benefit of the LC Issuing Banks and the Lenders a Lien in and hereby assigns to the Administrative Agent for the benefit of LC Issuing Banks and the Lenders all of its right, title and interest in, the Cash Collateral Account and all funds from time to time on deposit therein to secure its reimbursement obligations in respect of Letters of Credit. If any drawings then outstanding or thereafter made are not reimbursed in full immediately upon demand or, in the case of subsequent drawings, upon being made, then, in any such event, the Administrative Agent may apply the amounts then on deposit in the Cash Collateral Account, toward the payment in full of any of the LC Outstandings as and when such obligations shall become due and payable. Upon payment in full, after the termination of the Letters of Credit, of all such obligations, the Administrative Agent will repay and reassign to the Borrower any cash then in the Cash Collateral Account and the Lien of the Administrative Agent on the Cash Collateral Account and the funds therein shall automatically terminate.

Article VII. THE AGENT

SECTION 7.01. Authorization and Action.

Each LC Issuing Bank and Lender hereby appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As to any matters not expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Advances), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Majority Lenders, and such instructions shall be binding upon all Lenders; provided, however, that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law. The Administrative Agent agrees to give to each Lender and LC Issuing Bank prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement.

SECTION 7.02. Administrative Agent’s Reliance, Etc.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, the Administrative Agent: (i) may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement; (iii) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement on the part of the Borrower or to inspect the property (including the books and records) of the Borrower; (iv) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, this Agreement or any other instrument or document furnished pursuant hereto; and (v) shall incur no liability under or in respect of this Agreement by acting upon any notice, consent, certificate or other instrument or writing (which may be by facsimile, e-mail, electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and signed or sent by the proper party or parties.

SECTION 7.03. Citibank and Affiliates.

With respect to its Commitment and the Advances made by it, Citibank shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the Administrative Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Citibank in its individual capacity. Citibank and its affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, the Borrower, any of its Subsidiaries and any Person who may do business with or own securities of the Borrower or

any such Subsidiary, all as if Citibank were not the Administrative Agent and without any duty to account therefor to the Lenders.

SECTION 7.04. Lender Credit Decision.

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 4.01(e) and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement.

SECTION 7.05. Indemnification.

The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower), ratably according to the respective principal amounts of the Advances then outstanding to each of them (or if no Advances are at the time outstanding, ratably according to the respective amounts of their Commitments), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Administrative Agent (in its capacity as such) under this Agreement, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that such expenses are reimbursable by the Borrower but for which the Administrative Agent is not reimbursed by the Borrower.

SECTION 7.06. Successor Administrative Agent.

a.The Administrative Agent may at any time give notice of its resignation to the Lenders, the LC Issuing Banks and the Borrower. Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), to appoint a successor, which shall be a bank with an office in the United States of America and a combined capital and surplus of at least $500,000,000; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Majority Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders and the LC Issuing Banks, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that in no event shall any such successor Administrative Agent be a Defaulting Lender. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

a.If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (v) of the definition thereof, the Majority Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), appoint a successor; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Majority Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

a.The Majority Lenders may at any time, to the extent permitted by applicable law, by notice in writing to the Borrower and to the Person serving as Administrative Agent remove such Person as Administrative Agent and, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), appoint a successor; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment by the Removal Effective Date, then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. On the Removal Effective Date, the Borrower shall pay in full all amounts due and payable to the removed Administrative Agent hereunder and under the other Loan Documents.

a.With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each LC Issuing Bank directly, until such time, if any, as the Majority Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 8.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

SECTION 7.07. Appointment and Resignation of LC Issuing Banks.

(a) Each Lender who after the Restatement Effective Date agrees to become an LC Issuing Bank hereunder, shall execute and deliver to the Administrative Agent a LC Issuing Bank Agreement in substantially the form of Exhibit D hereto prior to issuing any letters of credit at the request or for the benefit of the Borrower. Upon execution and delivery by a Lender to the Administrative Agent of a LC Issuing Bank Agreement, such Lender shall become a party to this Agreement and shall have all the rights and obligations of a LC Issuing Bank as set forth herein. If the Lender is not incorporated under the laws of the United States of America or a state thereof, it shall deliver to the Borrower and the Administrative Agent certification as to exemption from, or reduction in, deduction or withholding of any United States federal income taxes as required by Section 2.15.

(b) Any LC Issuing Bank may resign at any time by notifying the Administrative Agent, the Lenders and the Borrower. Subject to the appointment and acceptance of a successor LC Issuing Bank as provided below, such retiring LC Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an LC Issuing Bank under this Agreement and the other Loan Documents with respect to Letters of Credit issued by it prior to such resignation, but shall not be required to issue additional Letters of Credit or to extend, renew or increase any existing Letter of Credit or Green Letter of Credit. Upon receipt by the Borrower of such notice of intent to resign, the Borrower and such retiring LC Issuing Bank may agree to replace or terminate the outstanding Letters of Credit issued by such LC Issuing Bank, and shall notify the Administrative Agent of any such replacement or termination. Upon any such resignation, the Majority Lenders shall have the right to appoint a successor LC Issuing Bank acceptable to the Borrower. If no successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 60 days after the retiring LC Issuing Bank gives notice of its resignation, then the retiring LC Issuing Bank may appoint a successor LC Issuing Bank, with an office in the United States of America and having a combined capital and surplus of at least $500,000,000 or an Affiliate of any such bank. Upon the acceptance of any appointment as LC Issuing Bank hereunder by a successor bank, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring LC Issuing Bank and the retiring LC Issuing Bank shall be discharged from its duties and obligations hereunder. After an LC Issuing Bank’s resignation hereunder, the

provisions of Sections 2.12, 2.15 and 8.04 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as an LC Issuing Bank.

SECTION 7.08. Trust Indenture Act.

In the event that the Administrative Agent or any of its Affiliates shall be or become an indenture trustee under the Trust Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in respect of any securities issued or guaranteed by the Borrower, the parties hereto acknowledge and agree that any payment or property received in satisfaction of or in respect of any of the Borrower’s obligations hereunder by or on behalf of Citibank in its capacity as Administrative Agent for the benefit of any Lender hereunder (other than Citibank or an Affiliate of Citibank) and that is applied in accordance with the terms hereof shall be deemed to be exempt from the requirements of Section 311 of the Trust Indenture Act pursuant to Section 311(b)(3) of the Trust Indenture Act.

SECTION 7.09. Erroneous Payments.

1.If the Administrative Agent (x) notifies a Lender, LC Issuing Bank or Credit Party, or any Person who has received funds on behalf of a Lender, LC Issuing Bank or Credit Party (any such Lender, LC Issuing Bank, Credit Party or other recipient, a “Payment Recipient”), that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under Section 7.09(b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, LC Issuing Bank, Credit Party or other Payment Recipient on its behalf) (any such funds, whether transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and pending its return or repayment as contemplated below in this Section 7.09 and held in trust for the benefit of the Administrative Agent, and such Lender, LC Issuing Bank or Credit Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

1.Without limiting Section 7.09(a), each Lender, LC Issuing Bank or Credit Party, or any Person who has received funds on behalf of a Lender, LC Issuing Bank or Credit Party, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, LC Issuing Bank or Credit Party, or other such recipient, otherwise becomes aware was

transmitted, or received, in error or by mistake (in whole or in part), then, in each such case:

(i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) in the case of immediately preceding clause (z), an error and mistake has been made, in each case, with respect to such payment, prepayment or repayment; and

(ii) such Lender, LC Issuing Bank or Credit Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 7.09(b).

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this Section 7.09(b) shall not have any effect on a Payment Recipient’s obligations pursuant to Section 7.09(a) or on whether or not an Erroneous Payment has been made.

a.Each Lender, LC Issuing Bank or Credit Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, LC Issuing Bank or Credit Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender, LC Issuing Bank or Credit Party under any Loan Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under Section 7.09(a).

a.(i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with Section 7.09(a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Advances (but not its Commitments) with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Advances (but not Commitments) of the Erroneous Payment Impacted Class, the “Erroneous Payment Deficiency Assignment”) (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to SyndTrak, DebtDomain, IntraLinks, ClearPar or any like web portal as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Advances to the Borrower or the Administrative Agent (but the failure of such Person to deliver any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender and (D) the Administrative Agent and the Borrower shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Administrative Agent will reflect in the Register its ownership interest in the Advances subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

(ii) Subject to Section 8.07 (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrower or otherwise)), the Administrative Agent may, in its discretion, sell any Advances acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Advance (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Advances acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Advances are then owned by the Administrative Agent) and (y) may, in the sole discretion of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

a.The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, LC Issuing Bank or Credit Party, to the rights and interests of such Lender, LC Issuing Bank or Credit Party, as the case may be) under the Loan Documents with respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the Borrower’s obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such obligations in respect of Advances that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any obligations owed by the Borrower hereunder; provided that this Section 7.09 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the obligations of the Borrower relative to the amount (and/or timing for payment) of the obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; provided, further, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, equal to the amount of funds received by the Administrative Agent from the Borrower for the purpose of making a payment hereunder that resulted in such Erroneous Payment.

a.To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on “discharge for value” or any similar doctrine.

a.Each party’s obligations, agreements and waivers under this Section 7.09 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender or LC Issuing Bank, the termination of the Commitments and/or the repayment, satisfaction or discharge of all obligations (or any portion thereof) under any Loan Document.

Article VIII. MISCELLANEOUS

SECTION 8.01. Amendments, Etc.

Subject to Section 2.20, no amendment or waiver of any provision of this Agreement, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the following: (a) waive any of the conditions specified in Section 3.01 or 3.02, (b) increase the Commitments of the Lenders (other than pursuant to Section 2.05(c)), extend the Commitments of the Lenders (other than pursuant to Section 2.18) or subject the Lenders to any additional obligations, (c) reduce the principal of, or interest (or rate of interest) on, the Advances or any fees or other amounts payable hereunder, (d) postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or other amounts

payable hereunder (other than pursuant to Section 2.18), (e) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances, or change the definition of “Majority Lenders” or the number of Lenders that shall be required for the Lenders or any of them to take any action hereunder, (f) change the provisions requiring pro rata sharing of payments under Section 2.14 or amend or waive Section 2.16 or (g) amend this Section 8.01; and provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent and the LC Issuing Banks in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent or the LC Issuing Banks under this Agreement, and provided further, that this Agreement may be amended and restated without the consent of any Lender, any LC Issuing Bank or the Administrative Agent if, upon giving effect to such amendment and restatement, such Lender, such LC Issuing Bank or the Administrative Agent, as the case may be, shall no longer be a party to this Agreement (as so amended and restated) or have any Commitment or other obligation hereunder or under any Letter of Credit or Green Letter of Credit and shall have been paid in full all amounts payable hereunder to such Lender, such LC Issuing Bank or the Administrative Agent, as the case may be.

Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, to the fullest extent permitted by applicable law, such Lender will not be entitled to vote in respect of amendments and waivers hereunder, and the Commitments and the outstanding Advances or other Extensions of Credit of such Lender hereunder will not be taken into account in determining whether the Majority Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of “Majority Lenders” will automatically be deemed modified accordingly for the duration of such period); provided, that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender.

SECTION 8.02. Notices, Etc.

a.Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including via electronic communication pursuant to Section 8.11) and mailed, emailed, sent by facsimile or delivered, if to the Borrower, at its address at The AES Corporation, 4300 Wilson Boulevard, Arlington, VA 22203, fax: (703) 528-4510, email: aescorplegalnotices@aes.com; if to any Bank or LC Issuing Bank, at its Applicable Lending Office specified in its Administrative Questionnaire; if to any other Lender, at its Applicable Lending Office specified in the Assignment and Assumption pursuant to which it became a Lender and if to the Administrative Agent, at its address at Building Ops II, One Penns Way, New Castle, Delaware 19720, Attention: Agency Operations (Facsimile: 646-274-5080, Email: glagentofficeops@citi.com); or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and communications shall be deemed to have been given on the date of receipt (i) if mailed, sent by facsimile or delivered by hand or overnight courier service and received during the normal business hours of such party as provided in this Section or in accordance with the latest unrevoked direction from such party given in accordance with this Section and (ii) if emailed and received in accordance with Section 8.11. If such notices and communications are received after the normal business hours of such party, receipt shall be deemed to have been given upon the opening of the recipient’s next Business Day. Except as otherwise provided in Section 5.01(c), notices and other communications given by the Borrower to the Administrative Agent shall be deemed given to the Lenders.

a.Change of Address, etc. Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

SECTION 8.03. No Waiver; Remedies.

No failure on the part of any Lender, any LC Issuing Bank or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

SECTION 8.04. Costs and Expenses; Indemnification.

a.The Borrower agrees to pay on demand all costs and expenses incurred by the Administrative Agent and the LC Issuing Banks in connection with the preparation, execution, delivery, syndication administration, modification and amendment of this Agreement and the other Loan Documents, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent and the LC Issuing Banks with respect thereto and with respect to advising the Administrative Agent as to its rights and responsibilities under this Agreement. Any invoices to the Borrower with respect to the aforementioned expenses shall describe such costs and expenses in reasonable detail. The Borrower further agrees to pay on demand all costs and expenses, if any (including, without limitation, counsel fees and expenses of outside counsel and of internal counsel), incurred by the Administrative Agent, the Lenders and the LC Issuing Banks in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of, and the protection of the rights of the Lenders under, this Agreement and the other Loan Documents, including, without limitation, reasonable counsel fees and expenses in connection with the enforcement of rights under this Section 8.04(a).

a.If any payment of principal of, or Conversion of, any SOFR Advance or Green SOFR Advance is made other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.05(c)(iii), 2.09, 2.10, 2.11 or 2.13, acceleration of the maturity of the Advances pursuant to Section 6.02, assignment to another Lender upon demand of the Borrower pursuant to Section 8.07(e) for any other reason, the Borrower shall, upon demand by any Lender or any LC Issuing Bank (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender or such LC Issuing Bank any amounts required to compensate such Lender or such LC Issuing Bank for any additional losses, costs or expenses which it may reasonably incur as a result of such payment or Conversion, including, without limitation, any loss (including loss of anticipated profits upon such Lender’s or such LC Issuing Bank’s representation to the Borrower that it has made reasonable efforts to mitigate such loss), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. Any Lender making a demand pursuant to this Section 8.04(b) shall provide the Borrower with a written certification of the amounts required to be paid to such Lender, showing in reasonable detail the basis for the Lender’s determination of such amounts; provided, however, that no Lender shall be required to disclose any confidential or proprietary information in any certification provided pursuant hereto, and the failure of any Lender to provide such certification shall not affect the obligations of the Borrower hereunder.

a.The Borrower hereby agrees to indemnify and hold each Lender, each LC Issuing Bank, the Administrative Agent and each Related Party of any of the foregoing Persons (each, an “Indemnified Person”) harmless from and against any and all claims, damages, losses, liabilities, costs or expenses (including reasonable attorney’s fees and expenses, whether or not such Indemnified Person is named as a party to any proceeding or is otherwise subjected to judicial or legal process arising from any such proceeding) that any of them may incur or which may be claimed against any of them by any Person or entity by reason of or in connection with the execution, delivery or performance of this Agreement or any other Loan Document or any transaction contemplated hereby or thereby, or the use by the Borrower or any of its Subsidiaries of the proceeds of any Advance or the use by the Borrower or any beneficiary of any Letter of Credit or Green Letter of Credit of such Letter of Credit or Green Letter of Credit, AND THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH INDEMNIFIED LIABILITIES ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNIFIED PERSON, except that no Indemnified Person shall be entitled to any indemnification hereunder to the extent that such claims, damages, losses, liabilities, costs or expenses are finally determined in a non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person. The Borrower’s obligations under this Section 8.04(c) shall survive the repayment of all amounts owing to the Lenders, the LC Issuing Banks, and the Administrative Agent under this Agreement and the termination of the Commitments. If and to the extent that the obligations of the Borrower under this Section 8.04(c) are unenforceable for any reason, the Borrower agrees to make the maximum contribution to the payment and satisfaction thereof which is permissible under applicable law.

a.The Borrower also agrees not to assert, and hereby waives, any claim against any Lender, any LC Issuing Bank, any of such Lender’s or such LC Issuing Bank’s affiliates (each, a “Lender-Related Party”), or any of their respective directors, officers, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to this Agreement or any other Loan Document, any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances or the use by the Borrower or any beneficiary of any Letter of Credit or Green Letter of Credit of such Letter of Credit or Green Letter of Credit. No Lender-Related Party shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

SECTION 8.05. Right of Set-off.

Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 6.02 to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 6.02, each Lender and each LC Issuing Bank is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or such LC Issuing Bank, as applicable, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement, whether or not such Lender or such LC Issuing Bank shall have made any demand under this Agreement and although such obligations may be unmatured; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.19(b)(iii) and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the LC Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the obligations owing to such Defaulting Lender as to which it exercised such right of setoff. Each Lender and each LC Issuing Bank agrees promptly to notify the Borrower after any such set-off and application made by such Lender or such LC Issuing Bank, as applicable, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender and each LC Issuing Bank under this Section 8.05 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Lender or such LC Issuing Bank may have.

SECTION 8.06. Binding Effect.

This Agreement shall become effective when it shall have been executed by the Borrower, the Lenders and the Administrative Agent and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent, each LC Issuing Bank and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign or delegate any rights hereunder (or any interest herein) or duties or obligations under this Agreement or any other Loan Document without the prior written consent of the Administrative Agent and all the Lenders.

SECTION 8.07. Assignments and Participations.

1.Successors and Assigns by Lenders Generally. No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

1.Assignments by Lenders. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Advances at the time owing to it); provided that any such assignment shall be subject to the following conditions:

a.Minimum Amounts.

i.in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Advances at the time owing to it (determined after giving effect to such assignments) that equal at least the amount specified in subsection (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender or an Affiliate of a Lender, no minimum amount need be assigned; and

i.in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Advances outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

a.Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Advances or the Commitment assigned.

a.Required Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

i.the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender or an Affiliate of a Lender;

i.the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender with a Commitment or an Affiliate of such Lender; and

i.the consent of each LC Issuing Bank (such consent not to be unreasonably withheld or delayed) shall be required for any assignment.

Notwithstanding any notice or consent requirement herein to the contrary, all the parties hereto hereby consent to any assignment by MUFG Union Bank, N.A. of its Commitments and Advances to its affiliate MUFG Bank, Ltd., which will otherwise be documented in accordance with the terms hereof.

a.Assignment and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to

waive such processing and recordation fee in the case of any assignment.

a.No Assignment to Certain Persons. No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) to any Defaulting Lender, any Potential Defaulting Lender or any of their respective Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender, a Potential Defaulting Lender or any of their respective Subsidiaries.

a.No Assignment to Natural Persons. No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).

a.Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Advances previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, each LC Issuing Bank and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Advances and participations in Letters of Credit in accordance with its Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this subsection, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.12, 2.15 and 8.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

1.Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at its address referred to in Section 8.02 a copy of each Assignment and Assumption delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances owing to, each Lender from time to time (the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the

Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.

1.Participations. Each Lender may at any time sell participations to one or more banks, financial institutions or other entities (other than a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it); provided, however, that (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the maker of any such Advance for all purposes of this Agreement and (iv) the Borrower, the Administrative Agent, the LC Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 7.05 with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to the provision in Section 8.01 relating to amendments, waivers or consents requiring unanimous consent of the Lenders that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12 and 2.15 (subject to the requirements and limitations therein) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as though it were a Lender, provided such Participant agrees to be subject to Section 2.16 as though it were a Lender. A Participant shall not be entitled to receive any greater payment under Sections 2.12 and 2.15 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.15 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.15 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Advances or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, advances, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, advance, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

1.Mitigation Obligations; Replacement of Lenders.

a.Designation of a Different Applicable Lending Office. If any Lender requests compensation under Section 2.12, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.15, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Applicable Lending Office for

funding or booking its Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or Section 2.15, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

a.Replacement of Lenders. If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.15 and, in each case, such Lender has declined or is unable to designate a different Applicable Lending Office in accordance with Section 8.07(e)(i), or if any Lender is a Non-Consenting Lender, a Non-Extending Lender, a Defaulting Lender or a Potential Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 8.07(b)), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.12 or Section 2.15) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

i.no event has occurred and is continuing that constitutes an Event of Default or that would constitute an Event of Default but for the requirement that notice be given or time elapse or both;

i.the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 8.07(b);

i.such Lender shall have received payment of an amount equal to the outstanding principal of its Advances and participations in LC Outstandings, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 8.04(b)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

i.in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter;

i.such assignment does not conflict with applicable law; and

i.in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender or Non-Extending Lender, the applicable assignee shall have consented to the applicable extension, amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

1.Certain Pledges. Anything in this Section 8.07 to the contrary notwithstanding, any Lender may at any time pledge or assign a security interest in all or any

portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any central bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

1.Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”) of such Granting Lender identified as such in writing from time to time by the Granting Lender to the Administrative Agent, the LC Issuing Banks and the Borrower, the option to provide to the Borrower all or any part of any Advance that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any such SPC to make any Advance, (ii) if such SPC elects not to exercise such option or otherwise fails to provide all or any part of such Advance, the Granting Lender shall be obligated to make such Advance pursuant to the terms hereof and (iii) no SPC or Granting Lender shall be entitled to receive any greater amount pursuant to Section 2.12 or 8.04(b) than the Granting Lender would have been entitled to receive had the Granting Lender not otherwise granted such SPC the option to provide any Advance to the Borrower. The making of an Advance by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Advance were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would otherwise be liable so long as, and to the extent that, the related Granting Lender provides such indemnity or makes such payment. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against or join any other person in instituting against such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof. Notwithstanding the foregoing, the Granting Lender unconditionally agrees to indemnify the Borrower, the LC Issuing Banks, the Administrative Agent and each Lender against all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be incurred by or asserted against the Borrower, the LC Issuing Banks, the Administrative Agent or such Lender, as the case may be, in any way relating to or arising as a consequence of any such forbearance or delay in the initiation of any such proceeding against its SPC. Each party hereto hereby acknowledges and agrees that no SPC shall have the rights of a Lender hereunder, such rights being retained by the applicable Granting Lender. Accordingly, and without limiting the foregoing, each party hereby further acknowledges and agrees that no SPC shall have any voting rights hereunder and that the voting rights attributable to any Advance made by an SPC shall be exercised only by the relevant Granting Lender and that each Granting Lender shall serve as the administrative agent and attorney-in-fact for its SPC and shall on behalf of its SPC receive any and all payments made for the benefit of such SPC and take all actions hereunder to the extent, if any, such SPC shall have any rights hereunder. In addition, notwithstanding anything to the contrary contained in this Agreement any SPC may (i) with notice to, but without the prior written consent of any other party hereto, assign all or a portion of its interest in any Advances to the Granting Lender and (ii) disclose on a confidential basis any information relating to its Advances to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This Section 8.07(g) may not be amended without the prior written consent of each Granting Lender, all or any part of whose Advance is being funded by an SPC at the time of such amendment.

SECTION 8.08. Governing Law.

THIS AGREEMENT AND ANY NOTE ISSUED PURSUANT TO SECTION 2.17 SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 8.09. Consent to Jurisdiction; Waiver of Jury Trial.

a.To the fullest extent permitted by law, the Borrower hereby irrevocably (i) submits to the exclusive jurisdiction of any New York State or Federal court sitting in New York City, Borough of Manhattan, and any appellate court from any thereof in any action or proceeding arising out of or relating to this Agreement, any other Loan Document or any Letter of Credit or Green Letter of Credit, and (ii) agrees that all claims in respect of such action or proceeding shall be heard and determined in such New York State court or in such Federal court. The Borrower hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding. The Borrower also irrevocably consents, to the fullest extent permitted by law, to the service of any and all process in any such action or proceeding by the mailing by certified mail of copies of such process to the Borrower at its address specified in Section 8.02. The Borrower agrees, to the fullest extent permitted by law, that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

a.THE BORROWER, EACH LC ISSUING BANK, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, ANY LETTER OF CREDIT OR GREEN LETTER OF CREDIT, OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.

SECTION 8.10 Execution in Counterparts.

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

The words “execution,” “signed,” “signature,” and words of like import in this Agreement and the other Loan Documents, including any Assignment and Assumption and any certificate or other instrument delivered pursuant to this Agreement or other Loan Document, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender, any LC Issuing Bank or the Administrative Agent reasonably requests that any party hereto manually execute any Loan Document, certificate or instrument that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

SECTION 8.11. Electronic Communications.

a.The Borrower hereby agrees that, to the extent the Borrower is so able, it will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to this Agreement, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an existing, borrowing or other extension of credit (including any election of an interest rate or Interest Period relating thereto), (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any default or event of default under this Agreement or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to oploanswebadmin@citigroup.com.

In addition, the Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner specified in this Agreement but only to the extent requested by the Administrative Agent. To the extent the Borrower is unable to deliver any portion of the Communications in an electronic/soft medium form, the Borrower shall promptly deliver hard copies of such Communications to the Administrative Agent.

a.The Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders and the LC Issuing Banks by posting the Communications on DebtDomain, the Internet or another similar electronic system (the “Platform”). The Borrower acknowledges that the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution.

a.THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER, ANY LC ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE PLATFORM OR OTHERWISE THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

a.The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of this Agreement. Each Lender and each LC Issuing Bank agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender or such LC Issuing Bank for purposes of this Agreement. Each Lender and each LC Issuing Bank agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of (i) such Lender’s or such LC Issuing Bank’s e- mail address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address.

a.Nothing herein shall prejudice the right of the Administrative Agent, any LC Issuing Bank or any Lender to give any notice or other communication pursuant to this Agreement in any other manner specified in this Agreement.

SECTION 8.12. Severability.

Any provision of this Agreement that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non- authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 8.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent or any LC Issuing Bank, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.

SECTION 8.13 Headings.

Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

SECTION 8.14. USA PATRIOT Act Notice.

Each Lender that is subject to the Patriot Act or the Beneficial Ownership Regulation, each LC Issuing Bank and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower pursuant to the requirements of the Patriot Act and the Beneficial Ownership Regulation that it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender, such LC Issuing Bank or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act and the Beneficial Ownership Regulation. The Borrower shall, and shall cause each of its Subsidiaries to, provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent, any LC Issuing Bank or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act and the Beneficial Ownership Regulation.

SECTION 8.15. Confidentiality.

Each of the Administrative Agent, each Lender and each LC Issuing Bank agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives on a “need to know” basis (it being understood that the Persons to which such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 8.15, to (A) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (C) any rating agency, (D) the CUSIP Service Bureau or any similar organization or (E) any credit insurance provider relating to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the extent such Information

a.becomes publicly available other than as a result of a breach of this Section 8.15 or (y) becomes available to the Administrative Agent, any Lender, the LC Issuing Bank or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. In addition, the Administrative Agent, the Lenders and the LC Issuing Banks may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent, the Lenders and the LC Issuing Banks in connection with the administration of this Agreement, the other Loan Documents and the Commitments.

For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the LC Issuing Bank on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries, provided that, in the case of information received from the Borrower or any of its Subsidiaries after the Restatement Effective Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 8.15 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

SECTION 8.16. Entire Agreement.

This Agreement, the Fee Letter and the Notes issued hereunder constitute the entire agreement among the parties relative to the subject matter hereof. Any previous agreement among the parties with

respect to the subject matter hereof is superseded by this Agreement, except (i) as expressly agreed in any such previous agreement and (ii) for the Fee Letter. Except as is expressly provided for herein, nothing in this Agreement, expressed or implied, is intended to confer upon any party other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement.

SECTION 8.17. No Fiduciary Duty.

The Credit Parties and their respective Affiliates (collectively, solely for purposes of this Section, the “Lender Parties”), may have economic interests that conflict with those of the Borrower, its securities holders and/or their Affiliates. The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender Party, on the one hand, and the Borrower, its securities holders or its Affiliates, on the other hand. The Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lender Parties, on the one hand, and the Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender Party has assumed an advisory or fiduciary responsibility in favor of the Borrower, its securities holders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender Party has advised, is currently advising or will advise the Borrower, its securities holders or its Affiliates on other matters) or any other obligation to the Borrower except the obligations expressly set forth in the Loan Documents, and (y) each Lender Party is acting solely as principal and not as the agent or fiduciary of the Borrower, its management, securities holders, creditors or any other Person. The Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. The Borrower agrees that it will not claim that any Lender Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such transaction or the process leading thereto.

SECTION 8.18. [reserved].

SECTION 8.19. Amendment and Restatement of Existing Credit Agreement.

This Agreement continues in effect the Existing Credit Agreement, and the Existing Credit Agreement shall be amended and restated in its entirety by the terms and provisions of this Agreement, which shall supersede all terms and provisions of the Existing Credit Agreement effective from and after the Restatement Effective Date. This Agreement is not intended to, and shall not, constitute a novation of any indebtedness or other obligations owing by the Borrower under the Existing Credit Agreement or a waiver or release of any indebtedness or other obligations owing, or any “Event of Default” or event that, with the giving of notice or passage of time or both, would be an “Event of Default” (each as defined in the Existing Credit Agreement) existing, under the Existing Credit Agreement based on any facts or events occurring or existing at or prior to the execution and delivery of this Agreement. On the Restatement Effective Date, the credit facilities described in the Existing Credit Agreement shall be amended, supplemented, modified and restated in their entirety by the credit facilities described herein, and all “Outstanding Credits” (as defined in the Existing Credit Agreement) of the Borrower that are not being paid on such date and remain outstanding as of such date under the Existing Credit Agreement, shall be deemed to be Outstanding Credits under the corresponding facilities described herein, without further action by any Person.

SECTION 8.20. Acknowledgment and Consent to Bail-In of Affected Financial Institutions.

Solely to the extent that an Affected Financial Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Credit Party that is an Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

i.the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Credit Party that is an Affected Financial Institution; and

i.the effects of any Bail-in Action on any such liability, including, if applicable:

1.a reduction in full or in part or cancellation of any such liability;

1.a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

1.the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

SECTION 8.21. Certain ERISA Matters.

a.Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:

i.Such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Letters of Credit, the Commitments or this Agreement,

i.The transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96- 23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Letters of Credit, the Commitments and this Agreement,

(iii)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Advances, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Advances, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Letters of Credit, the Commitments and this Agreement, or

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

a.In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Advances, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any

rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

SECTION 8.22. Acknowledgement Regarding Any Supported QFCs.

To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Rate Contracts or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States), that in the event that a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event that a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

SECTION 8.23. Interest Rate Limitation.

Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Advance or Letter of Credit or Green Letter of Credit, together with all fees, charges and other amounts which are treated as interest on such Advance or Letter of Credit or Green Letter of Credit under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender making such Advance or the LC Issuing Bank issuing such Letter of Credit or Green Letter of Credit in accordance with applicable law, the rate of interest payable in respect of such Advance or Letter of Credit or Green Letter of Credit hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and charges that would have been payable in respect of such Advance or Letter of Credit or Green Letter of Credit but were not payable as a result of the operation of this Section 8.23 shall be cumulated and the interest and charges payable to such Lender or LC Issuing Bank in respect of other Advances or Letters of Credit or periods shall be increased (but not above the Maximum Rate applicable thereto) until such cumulated amount, together with interest thereon at the Applicable Margin to the date of repayment, shall have been received by such Lender or LC Issuing Bank.

SECTION 8.24. Judgment Currency.

If for the purposes of enforcing the obligations of the Borrower hereunder it is necessary to convert a sum due from such Person in Dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent and the Lenders could purchase Dollars with such currency at or about 11:00 A.M. (New York City time) on the Business Day preceding that on which final judgment is given. The obligations in respect of any sum due to the Administrative Agent and the Lenders hereunder shall, notwithstanding any adjudication expressed in a currency other than Dollars, be discharged only to the extent that on the Business Day following receipt by the Administrative Agent and the Lenders of any sum adjudged to be so due in such other currency the Administrative Agent and the Lenders may in accordance with normal banking procedures purchase Dollars with such other currency; if the amount of Dollars so purchased is less than the sum originally due to the Administrative Agent and the Lenders in Dollars, the Borrower agrees, to the fullest extent that it

may effectively do so, as a separate obligation and notwithstanding any such adjudication, to indemnify the Administrative Agent and the Lenders against such loss, and if the amount of Dollars so purchased exceeds the sum originally due to the Administrative Agent and the Lenders, it shall remit such excess to the Borrower.

[The remainder of this page intentionally left blank.]

SCHEDULE I

COMMITMENT SCHEDULE

Name of Lender	Commitment Amount
Citibank, N.A.	$89,500,000
Banco Santander, S.A., New York Branch	$89,500,000
Bank of America, N.A.	$89,500,000
Barclays Bank PLC	$89,500,000
BNP Paribas	$89,500,000
Credit Suisse AG, New York Branch	$89,500,000
Goldman Sachs Bank USA	$89,500,000
JPMorgan Chase Bank, N.A.	$89,500,000
Mizuho Bank, Ltd.	$89,500,000
Morgan Stanley Bank, N.A.	$89,500,000
MUFG Union Bank, N.A	$89,500,000
Sumitomo Mitsui Banking Corporation	$89,500,000
Associated Bank, N.A.	$48,000.000
Canadian Imperial Bank of Commerce, New York Branch	$48,000.000
Crédit Agricole Corporate and Investment Bank	$48,000.000
HSBC Bank USA, National Association	$48,000.000
Société Générale	$48,000.000
The Bank of Nova Scotia	$48,000.000
Wells Fargo Bank, National Association	$48,000.000
Natixis, New York Branch	$30,000,000
Standard Chartered Bank	$30,000,000
United Bank	$30,000,000
TOTAL	$1,500,000,000.00

SCHEDULE II

FRONTING COMMITMENT SCHEDULE

Name of LC Issuing Bank	Fronting Commitment Amount
Citibank, N.A.	$74,000,000
Bank of America, N.A.	$74,000,000
Credit Suisse AG, New York Branch	$74,000,000
Goldman Sachs Bank USA	$74,000,000
TOTAL	$296,000,000

SCHEDULE III

EXISTING LETTERS OF CREDIT

LC Issuing Bank	LC Expiry Date	Amount
BNP	14-Apr-22	553,000.00
BNP	14-Apr-22	1,187,693.00
BNP	20-Apr-22	103,000.00
CITIBANK, N.A.	31-Dec-21	19,244.00
CITIBANK, N.A.	30-Sep-22	177,000.00
CITIBANK, N.A.	30-Aug-22	850,000.00
CITIBANK, N.A.	3-Sep-22	17,715,834.00
CITIBANK, N.A.	23-Sep-22	175,000.00
CITIBANK, N.A.	23-Sep-22	750,000.00
CITIBANK, N.A.	12-May-22	402,520.00
CITIBANK, N.A.	3-Jan-22	800,000.00
CITIBANK, N.A.	20-Jan-22	636,300.00
CITIBANK, N.A.	28-Feb-22	1,363,500.00
CITIBANK, N.A.	30-Dec-22	2,497,500.00
CITIBANK, N.A.	30-Dec-22	2,497,500.00
CITIBANK, N.A.	31-Jan-22	200,000.00
CITIBANK, N.A.	31-Jan-22	1,200,000.00
CITIBANK, N.A.	31-Jan-22	800,000.00
CITIBANK, N.A.	31-Jan-22	250,000.00
CITIBANK, N.A.	31-Jan-22	1,000,000.00
CITIBANK, N.A.	31-Jan-22	1,000,000.00
CREDIT SUISSE	13-Dec-21	311,743.24
GOLDMAN SACHS	31-Dec-21	550,000.00
GOLDMAN SACHS	29-Oct-21	23,500,000.00
GOLDMAN SACHS	29-Oct-21	35,438.00
CITIBANK, N.A.	15-Jan-23	1,250,000.00
CITIBANK, N.A.	15-Jan-23	1,250,000.00

SCHEDULE IV

QUALIFIED HOLDING COMPANIES

AES Argentina Holdings S.C.A.

AES Chaparron I, Ltd.

AES Chaparron II, Ltd.

AES Chigen Holdings Ltd.

AES Climate Solutions Holdings, L. P.

AES Climate Solutions Holdings, LLC

AES Climate Solutions Holdings I, LLC

AES Climate Solutions Holdings II, LLC

AES Communications Latin America, Inc.

AES EDC Holding, LLC
AES Energy B.V.

AES GEI US Finance, Inc.

AES International Holdings Ltd.

AES LNG Holding II, Ltd.

AES Oasis Holdco (Cayman) Ltd.

AES Oman Holdings Ltd.
AES Overseas Holdings (Cayman) Ltd.

AES Platense Investments Uruguay S.C.A.

AES Songas Holdings Ltd.

AES Transgas I, Ltd.

AES Transgas II, Ltd.

AES Venezuela Finance Ltd.

Cemig II C.V.

Global Energy Holdings CV
Inversiones LK SpA

La Plata II, Ltd.

La Plata III C.V.

Mercury Chile Holdco, Ltd.

Mercury Chile Co. II, Ltd.

SCHEDULE 5.02(a) EXISTING LIENS

None.

EX-10.32

U.S. $200,000,000

TERM LOAN AGREEMENT

Dated as of September 30, 2022

Among

THE AES CORPORATION

as Borrower

THE BANKS NAMED HEREIN

as Banks

and

SUMITOMO MITSUI BANKING CORPORATION

as Administrative Agent

SUMITOMO MITSUI BANKING CORPORATION

as Sole Bookrunner and Joint Lead Arranger

SUMITOMO MITSUI BANKING CORPORATION

as Green Loan Coordinator

SUMITOMO MITSUI BANKING CORPORATION

as Syndication Agent

MUFG BANK, LTD. and

THE BANK OF NOVA SCOTIA

as Documentation Agents

MUFG BANK, LTD. and

THE BANK OF NOVA SCOTIA

as Joint Lead Arrangers

TABLE OF CONTENTS

Page

Article I. DEFINITIONS AND ACCOUNTING TERMS. 6

SECTION 1.01 Certain Defined Terms. 6

SECTION 1.02.Computation of Time Periods. 31

SECTION 1.03.Accounting Terms and Principles. 31

SECTION 1.04.Statutory Divisions. 31

SECTION 1.05Rates. 31

Article II. AMOUNTS AND TERMS OF THE EXTENSIONS OF CREDIT. 32

SECTION 2.01The Commitments. 32

SECTION 2.02.Making the Advances. 32

SECTION 2.03.[Reserved]. 34

SECTION 2.04.Fees. 34

SECTION 2.05.[Reserved]. 34

SECTION 2.06Repayment of Advances. 34

SECTION 2.07.Interest on Advances. 34

SECTION 2.08.[Reserved]. 34

SECTION 2.09.Interest Rate Determination. 34

SECTION 2.10.Conversion of Advances. 35

SECTION 2.11.Voluntary Prepayments. 36

SECTION 2.12.Increased Costs. 36

SECTION 2.13.Illegality. 37

SECTION 2.14.Payments and Computations. 38

SECTION 2.15.Taxes. 39

SECTION 2.16.Sharing of Payments, Etc. 43

SECTION 2.17.Noteless Agreement; Evidence of Indebtedness. 44

SECTION 2.18[Reserved]. 44

SECTION 2.19Defaulting Lenders. 44

SECTION 2.20. Benchmark Replacement Setting. 45

Article III. CONDITIONS OF BORROWING.. 46

SECTION 3.01.Conditions Precedent to Effectiveness. 46

Article IV. REPRESENTATIONS AND WARRANTIES. 48

SECTION 4.01.Representations and Warranties of the Borrower. 48

Article V. COVENANTS OF THE BORROWER. 50

SECTION 5.01.Affirmative Covenants. 51

SECTION 5.02.Negative Covenants. 54

Article VI. EVENTS OF DEFAULT AND REMEDIES. 56

SECTION 6.01.Events of Default. 56

SECTION 6.02.Remedies. 57

Article VII. THE AGENT. 58

SECTION 7.01. Authorization and Action. 58

SECTION 7.02.Administrative Agent’s Reliance, Etc. 58

SECTION 7.03.SMBC and Affiliates. 59

SECTION 7.04.Lender Credit Decision. 59

SECTION 7.05.Indemnification. 59

SECTION 7.06.Successor Administrative Agent. 60

SECTION 7.07.No Other Duties. 61

SECTION 7.08.Trust Indenture Act. 61

SECTION 7.09.Erroneous Payments. 61

Article VIII. MISCELLANEOUS. 65

SECTION 8.01.Amendments, Etc. 65

SECTION 8.02.Notices, Etc. 66

SECTION 8.03.No Waiver; Remedies. 66

SECTION 8.04.Costs and Expenses; Indemnification. 66

SECTION 8.05.Right of Set-off. 68

SECTION 8.06.Binding Effect. 68

SECTION 8.07.Assignments and Participations. 68

SECTION 8.08.Governing Law. 74

SECTION 8.09.Consent to Jurisdiction; Waiver of Jury Trial. 74

SECTION 8.10Execution in Counterparts. 75

SECTION 8.11.Electronic Communications. 75

SECTION 8.12.Severability. 77

SECTION 8.13Headings. 77

SECTION 8.14. USA PATRIOT Act Notice. 77

SECTION 8.15. Confidentiality. 77

SECTION 8.16.Entire Agreement. 78

SECTION 8.17.No Fiduciary Duty. 79

SECTION 8.18.[Reserved]. 79

SECTION 8.19.[Reserved]. 79

SECTION 8.20.Acknowledgment and Consent to Bail-In of Affected Financial Institutions. 79

SECTION 8.21.Certain ERISA Matters. 80

SECTION 8.22.[Reserved]. 81

SECTION 8.23.Interest Rate Limitation. 81

SCHEDULES

Schedule I -- Commitment Schedule

Schedule II - Qualified Holding Companies

Schedule 5.02(a) – Existing Liens

EXHIBITS

Exhibit A-1 - Form of Notice of Borrowing

Exhibit A-2 - Form of Notice of Conversion

Exhibit B - Form of Assignment and Assumption

Exhibit C-1 - Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-2 - Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-3 - Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Exhibit C-4 - Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

TERM LOAN AGREEMENT

TERM LOAN AGREEMENT, dated as of September 30, 2022, among THE AES CORPORATION, a Delaware corporation (the “Borrower”), the banks and other financial institutions (the “Banks”) listed on the signature pages hereof, Sumitomo Mitsui Banking Corporation (“SMBC”), as administrative agent (the “Administrative Agent”) for the Lenders (as defined below) parties hereto from time to time.

PRELIMINARY STATEMENTS

a.The Borrower has requested that the Lenders agree, on the terms and conditions set forth herein, to provide term loans to the Borrower in an aggregate principal amount not to exceed $200,000,000.

a.The Lenders have indicated their willingness to provide the requested term loans on the terms and conditions of this Agreement.

a.The Borrower and the Lenders have agreed that the use of proceeds of the Advances (as set forth in Section 5.01(b)) constitutes a refinancing of “Eligible Green Projects” as defined in the “AES Green Financing Framework” published by the Borrower in December 2020 (the “AES Green Financing Framework”) and the Borrower intends to designate the Advances under this Agreement as Green Financings for purposes of the AES Green Financing Framework and to comply with the requirements under such framework.

NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

Article I. DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01 Certain Defined Terms.

As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

“Adjusted Parent Operating Cash Flow” means, for any period, (i) Parent Operating Cash Flow for such period less (ii) the sum of the following expenses (determined without duplication), in each case to the extent paid by the Borrower during such period in cash and regardless of whether any such amount was accrued during such period:

(A) income tax expenses of the Borrower and its Subsidiaries (other than income tax expenses of Subsidiaries that are not organized under the laws of the United States or any State thereof); and

(B) corporate overhead expenses (including rental expense of the Borrower).

For purposes of determining Adjusted Parent Operating Cash Flow for any period, the contribution to Parent Operating Cash Flow for such period from any Subsidiary not organized under the law of the United States or any State thereof shall be reduced (but not below zero) in the amount of any Investment made in such Subsidiary during such period (for the purpose of permitting such Subsidiary to pay income taxes during such period) by the Borrower or any Qualified Holding Company having an interest in such Subsidiary.

“Adjusted Term SOFR” means, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus (b) 0.10% per annum; provided that if Adjusted Term SOFR as so determined shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.

“Administrative Agent” has the meaning specified in the preamble hereto.

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative Agent (with a copy to the Borrower) duly completed by such Lender.

“Advance” means an advance by a Lender to the Borrower as part of a Borrowing and refers to a Base Rate Advance or SOFR Advance, each of which shall be a “Type” of Advance.

“AES Business” means a business owned, operated or managed (including on a joint basis with others), directly or indirectly, by the Borrower.

“AES Indenture” means that certain Indenture, dated as of May 27, 2020, among the Borrower, each Guarantor (as defined therein) and Deutsche Bank Trust Company Americas, as Trustee, as amended, modified, supplemented and in effect on the Effective Date.

“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person.

“Agent Parties” has the meaning specified in Section 8.11(c).

“Agent’s Account” means the account of the Administrative Agent designated from time to time in a written notice to the Lenders and the Borrower as the account to which the Lenders and the Borrower are to make payments under this Agreement.

“Agreement” means this Term Loan Agreement, as further amended, supplemented or modified from time to time.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery, money laundering or corruption including, without limitation, the U. S. Foreign Corrupt Practices Act.

“Applicable Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Lending Office” in its Administrative Questionnaire or in the Assignment and Assumption pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify in writing to the Borrower and the Administrative Agent.

“Applicable Margin” means, (i) for any Base Rate Advance, 0.125% per annum and (ii) for any SOFR Advance, 1.125% per annum.

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B hereto.

“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.20(d).

“Bail-in Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

“Bail-in Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

“Banks” has the meaning specified in the preamble hereto.

“Base Rate” means, for any period, an interest rate per annum at all times equal to the highest of:

i.the Prime Rate;

i.1/2 of 1% per annumabove the Federal Funds Rate in effect from time to time; and

i.the rate of interest per annum equal to Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%.

Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate or Adjusted Term SOFR shall be effective from and including the effective day of such change in the Prime Rate, Federal Funds Rate or Adjusted Term SOFR, respectively.

“Base Rate Advance” means an Advance that bears interest as provided in Section 2.07(a).

“Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.20(a).

“Benchmark Replacement” means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

(a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

(b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or

publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Start Date” means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

“Benchmark Unavailability Period” means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.20 and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.20.

“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan.”

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

“Borrower” has the meaning specified in the preamble hereto.

“Borrowing” means a borrowing consisting of simultaneous Advances of the same Type made by each of the Lenders pursuant to Section 2.01 or Converted pursuant to Section 2.09 or 2.10.

“Business Day” means a day of the year on which banks are not required or authorized to close in New York City.

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Body or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued.

“Charges” has the meaning specified in Section 8.23.

“Code” means the Internal Revenue Code of 1986, as the same may be amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended or modified from time to time.

“Commitment” has the meaning specified in Section 2.01.

“Common Equity” means the stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company member interests) that have ordinary voting power for the election of directors, managers or trustees (or other persons performing similar functions) of the issuer, as applicable, provided that Preferred Equity, even if it has such ordinary voting power, shall not be Common Equity.

“Communication” has the meaning specified in Section 8.11(a).

“Conforming Changes” means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 8.04(b) and other technical, administrative or operational matters) that the Administrative Agent decides, in consultation with the Borrower, may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides, in consultation with the Borrower, is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

“Consolidated Subsidiary” means, at any date with respect to any Person, any Subsidiary of such Person or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of such date.

“Convert,” “Conversion” and “Converted” each refers to a conversion of Advances of one Type into Advances of another Type or the selection of a new, or the renewal of the same, Interest Period for SOFR Advances pursuant to Section 2.09 or 2.10.

“Covered Entity” shall mean any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Covered Transaction” means a Stock Disposition by a Subsidiary or the incurrence of Debt.

“Credit Parties” means the Administrative Agent and the Lenders.

“Debt” of any Person means (without duplication) all liabilities, obligations and indebtedness (whether contingent or otherwise) of such Person (i) for borrowed money or

evidenced by bonds, debentures, notes, or other similar instruments, (ii) to pay the deferred purchase price of property or services (other than such obligations incurred in the ordinary course of business on customary trade terms, provided that such obligations are not more than 30 days past due), (iii) as lessee under leases which shall have been or should be, in accordance with GAAP, recorded as capital leases, (iv) under reimbursement agreements or similar agreements with respect to the issuance of letters of credit (other than obligations in respect of letters of credit opened to provide for the payment of goods or services purchased in the ordinary course of business), and (v) under any Guaranty Obligations. For the avoidance of doubt, Qualified Equity-Linked or Hybrid Securities shall not be considered Debt for any purpose of this Agreement.

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“Defaulting Lender” means at any time, subject to Section 2.19(b), (i) any Lender that has failed, for two or more Business Days from the date required to be funded or paid, to (A) fund any portion of its Advances or (B) pay over to any Credit Party any other amount required to be paid by it hereunder (each, a “funding obligation”), unless, in the case of clause (A) above, such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding has not been satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (ii) any Lender that has notified the Administrative Agent or the Borrower in writing, or has stated publicly, that it does not intend or expect to comply with any of its funding obligations under this Agreement unless such writing or statement states that such position is based on such Lender’s determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (iii) any Lender that has defaulted generally on its funding obligations under other loan agreements, credit agreements and other similar agreements, (iv) any Lender that has, for three or more Business Days after written request by the Administrative Agent or the Borrower, failed to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender will cease to be a Defaulting Lender pursuant to this clause (iv) upon the Administrative Agent’s and the Borrower’s receipt of such written confirmation), (v) any Lender with respect to which a Lender Insolvency Event has occurred and is continuing with respect to such Lender or its Lender Parent or (vi) any Lender that becomes the subject of any Bail-In Action. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any of clauses (i) through (vi) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.19(b) hereof) upon notification of such determination by the Administrative Agent to the Borrower and the Lenders.

“Derivative Obligations” of any Person means all obligations of such Person in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, credit derivative transaction, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross‑currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of the foregoing transactions) or any combination of the foregoing transactions; provided that

Derivative Obligations shall not include any obligations of such Person in relation to an equity forward contract, equity or equity index swap or equity or equity index option pertaining, linked or indexed to the common stock of such Person or any Affiliate thereof. For purposes of determining the aggregate amount of Derivative Obligations on any date, the Derivative Obligations of the applicable Person in respect of any Hedge Agreement shall be the maximum aggregate amount (after giving effect to any netting agreements to the extent such netting agreements are with the same Person to whom any such Derivative Obligations are owed or with Affiliates of such Person) that the applicable Person would be required to pay if such Hedge Agreement were terminated at such time.

“Disclosure Documents” means the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 and Current Reports on Form 8-K filed in 2022 prior to the Effective Date.

“Dollars” or “$” means United States dollars.

“EDGAR” means the “Electronic Data Gathering, Analysis and Retrieval” system (or any successor system thereof) maintained by the SEC.

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

“Effective Date” means September 30, 2022.

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 8.07(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 8.07(b)(iii)).

“Eligible Securitization Bonds” means securities, however denominated, that are issued by any direct or indirect Subsidiary of the Borrower or any other Person under which recourse is limited to assets that are primarily rights to collect charges that are authorized by law (including, without limitation, pursuant to any order of any governmental authority authorized by law to regulate public utilities) to be invoiced to customers of the Borrower or any direct or indirect Subsidiary of the Borrower.

“Environmental Laws” means any federal, state or local laws, ordinances or codes, rules, orders, or regulations relating to pollution or protection of the environment, including, without limitation, laws relating to hazardous substances, laws relating to reclamation of land and waterways and laws relating to emissions, discharges, releases or threatened releases of

pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollution, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.

“Equity Interest” means, with respect to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are authorized or otherwise existing on any date of determination; provided that Equity Interest shall not include Trust Preferred Securities or any debt security that constitutes Debt and is convertible into, or exchangeable for, Equity Interests.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended and modified from time to time.

“ERISA Affiliate” of a Person or entity means any Person, trade or business (whether or not incorporated) that is a member of a group of which such Person or entity is a member and that is under common control with such Person or entity within the meaning of, or that would otherwise be aggregated with such Person or entity under, Section 414 of the Code.

“ERISA Plan” means an employee benefit plan maintained for employees of any Person or any ERISA Affiliate of such Person subject to Title IV of ERISA (other than a Multiemployer Plan).

“ERISA Termination Event” means (i) a Reportable Event described in Section 4043 of ERISA and the regulations issued thereunder (other than a Reportable Event not subject to the provision for 30- day notice to PBGC), or (ii) the withdrawal of the Borrower or any of its ERISA Affiliates from an ERISA Plan during a plan year in which the Borrower or any of its ERISA Affiliates was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (iii) the filing of a notice of intent to terminate an ERISA Plan or the treatment of an ERISA Plan amendment as a termination under Section 4041 of ERISA, or (iv) the institution of proceedings to terminate an ERISA Plan by the PBGC or to appoint a trustee to administer any ERISA Plan, or (v) any other event or condition that would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan.

“Erroneous Payment” has the meaning assigned to it in Section 7.09(a).

“Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Impacted Class” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Return Deficiency” has the meaning assigned to it in Section 7.09(d)(i).

“Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section 7.09(e).

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

“Events of Default” has the meaning specified in Section 6.01.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Credit Party or required to be withheld or deducted from a payment to a Credit Party, (i) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of such Credit Party being organized under the laws of, or having its principal office or, in the case of any Lender, its Applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Advance or Commitment pursuant to a law in effect on the date on which (A) such Lender acquires such interest in the Advance or Commitment (other than pursuant to an assignment requested by the Borrower under Section 8.07(e)) or (B) such Lender changes its Applicable Lending Office, except in each case to the extent that, pursuant to Section 2.15, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Applicable Lending Office, (iii) Taxes attributable to such Credit Party’s failure to comply with Section 2.15(g) and (iv) any U.S. federal withholding Taxes imposed under FATCA.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreement entered into in connection with such sections of the Code and any legislation, law, regulation or practice enacted or promulgated pursuant to such intergovernmental agreement.

“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate; provided, however, if the Federal Funds Rate as so determined would be less than zero (0.00%), such rate shall be deemed to be zero (0.00%) for the purposes of this Agreement.

“Fee Letter” means the letter agreement dated September 6, 2022 between the Borrower and SMBC, as amended, modified and supplemented from time to time.

“Fitch” means Fitch Ratings Ltd., and its successors or if Fitch does not have a rating for the Borrower (but S&P or Moody’s do) another nationally-recognized and reputable credit service satisfactory to the Administrative Agent shall be used in its stead.

“Floor” means a rate of interest equal to 0.0%.

“Foreign Lender” means a Lender that is not a U.S. Person.

“GAAP” means generally accepted accounting principles in the United States consistent with those applied in the preparation of the financial statements referred to in Section 4.01(e) hereof.

“Governmental Body” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

“Granting Lender” has the meaning specified in Section 8.07(g).

“Guaranty Obligations” means direct or indirect guaranties in respect of, and obligations to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, Debt of any Person, including, without limitation, Support Obligations.

“Hedge Agreement” means any contract, instrument or agreement in respect of Derivative Obligations.

“Hybrid Securities” means (i) debt or preferred or preference equity securities (however designated or denominated) of the Borrower or any of its Subsidiaries that are mandatorily convertible into Common Equity or Preferred Equity of the Borrower or any of its Subsidiaries, provided that such securities do not constitute Redeemable Stock, (ii) securities of the Borrower or any of its Subsidiaries that (A) are afforded equity treatment (whether full or partial) by S&P, Moody’s or Fitch at the time of issuance, and (B) require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to 91 days after the Termination Date, (iii) any other securities (however designated or denominated), that are (A) issued by the Borrower or any of its Subsidiaries, (B) not subject to mandatory redemption or mandatory prepayment, and (C) together with any guaranty thereof, subordinate in right of payment to the unsecured and unsubordinated indebtedness (other than trade liabilities incurred in the ordinary course of business and payable in accordance with customary terms) of the issuer of such securities or guaranty and (iv) on any date of determination, all outstanding preferred stock and other preferred securities of the Borrower and its Subsidiaries, including preferred securities issued by any subsidiary trust.

“Indemnified Person” has the meaning specified in Section 8.04(c).

“Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (ii) to the extent not otherwise described in (i), Other Taxes.

“Interest Period” means, for each Advance made as part of the same Borrowing, the period commencing on the date of such Advance or the date of the Conversion of any Advance into such an Advance and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by

the Borrower pursuant to the provisions below. The duration of each such Interest Period shall be 1, 3 or 6 months as the Borrower may, upon notice received by the Administrative Agent not later than 1:00 P.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided, however, that:

i.the Borrower may not select any Interest Period that ends after the Maturity Date;

i.Interest Periods commencing on the same date for Advances made as part of the same Borrowing shall be of the same duration; and

i.whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, in the case of any Interest Period for a SOFR Advance, that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day.

“IRS” means the United States Internal Revenue Service.

“Lender Insolvency Event” means that (i) a Lender or its Lender Parent is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, or (ii) a Lender or its Lender Parent is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such Lender or its Lender Parent, or such Lender or its Lender Parent has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment; provided that, a Lender Insolvency Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Body so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Body) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.

“Lender Parent” means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

“Lenders” means the Banks listed on the signature pages hereof and each Person that shall become a party hereto pursuant to Section 8.07.

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, a Person or any of its Subsidiaries shall be deemed to own, subject to a Lien, any asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset.

“Loan Documents” means this Agreement, each promissory note delivered under Section 2.17, the Fee Letter and each other document so designated by the Borrower and the Majority Lenders, in each case, as any of the foregoing may be amended, supplemented or modified from time to time.

“Majority Lenders” means, subject to the last paragraph of Section 8.01, at any time Lenders to which are owed more than 50% of the then aggregate unpaid principal amount of the Advances, or, if there are no outstanding Advances, Lenders having more than 50% of the Commitments (without giving effect to any termination in whole of the Commitments pursuant to Section 6.02), provided, that for purposes hereof, neither the Borrower, nor any of its Affiliates, if a Lender, shall be included in (i) the Lenders holding such amount of the Advances or having such amount of the Commitments or (ii) determining the aggregate unpaid principal amount of the Advances or the total Commitments.

“Margin Stock” has the meaning assigned to that term in Regulation U issued by the Board of Governors of the Federal Reserve System, and as amended and in effect from time to time.

“Material Adverse Effect” means a material adverse effect on (i) the business, consolidated results of operations, or consolidated financial condition of the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform its material obligations under any Loan Document or (iii) the rights of and remedies available to the Administrative Agent or any Lender under any Loan Document.

“Maturity Date” means the earlier to occur of (i) the second anniversary of the Effective Date and (ii) date of acceleration of the Advances pursuant to Section 6.02 hereof; provided that, if such earlier date is not a Business Day, the Maturity Date means the Business Day next preceding such earlier date.

“Maximum Rate” has the meaning specified in Section 8.23.

“Minimum CP Rating” means (i) A‑1 for Standard & Poor’s Ratings Services; (ii) P‑1 for Moody’s Investors Service, Inc.; (iii) F‑1 for Fitch IBCA, Inc. and (iv) D‑1 for Duff & Phelps Credit Rating Co.

“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding three plan years made or accrued an obligation to make contributions.

“Net Cash Proceeds”: (a) with respect to a Covered Transaction, means the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of deferred consideration) by the Borrower and its Subsidiaries from such Covered Transaction after deducting therefrom (without duplication) (i) brokerage commissions, underwriting fees and discounts, legal fees, finder’s fees and other similar fees and commissions, (ii) in the case of a Covered Transaction in the form of incurrence of Debt by a Subsidiary, the amount of any Debt of such Subsidiary that, by the terms of the agreement or instrument governing such Debt or applicable law, is required to be repaid or prepaid and is actually so repaid or prepaid with all or a portion of the proceeds of such Covered Transaction and (iii) any portion of the proceeds of such Covered Transaction required to prepay or collateralize interest or dividends payable in respect of such Covered Transaction during one six-month period.

“Non-Consenting Lender” means any Lender hereunder that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 8.01 and (b) has been approved by the Majority Lenders or the majority of Lenders directly affected thereby (as applicable).

“Non-Defaulting Lender” means, at any time, a Lender that is not a Defaulting Lender or a Potential Defaulting Lender.

“Notice of Borrowing” has the meaning specified in Section 2.02(a).

“Notice of Conversion” has the meaning specified in Section 2.10(a).

“NYFRB” means the Federal Reserve Bank of New York.

“Off Balance Sheet Obligation” means, with respect to any Person, any obligation of such Person under a synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing classified as an operating lease in accordance with GAAP, if such obligations would give rise to a claim against such Person in a proceeding referred to in Section 6.01(e).

“Other Connection Taxes” means, with respect to any Credit Party, Taxes imposed as a result of a present or former connection between such Credit Party and the jurisdiction imposing such Tax (other than connections arising from such Credit Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Advance or Loan Document).

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 8.07(e)).

“Parent Operating Cash Flow” means, for any period, the sum of the following amounts (determined without duplication) as calculated below:

(i) dividends paid to the Borrower by its Subsidiaries during such period;

(ii) consulting and management fees paid to the Borrower for such period;

(iii) tax sharing payments made to the Borrower during such period;

(iv) interest and other distributions paid to the Borrower during such period with respect to cash and other Temporary Cash Investments of the Borrower (other than with respect to amounts on deposit in the Cash Collateral Account (as defined in the Revolving Credit Agreement);

(v) cash payments made to the Borrower in respect of foreign exchange Hedge Agreements or other foreign exchange activities entered into by the Borrower on behalf of any of its Subsidiaries; and

(vi) other cash payments made to the Borrower by its Subsidiaries other than (A) returns of invested capital and (B) payments in an amount equal to the aggregate amount released from debt service reserve accounts upon the issuance of letters of credit for the account of the Borrower and the benefit of the beneficiaries of such accounts.

For purposes of determining Parent Operating Cash Flow:

(1) the aggregate net cash payments received by a Qualified Holding Company but not paid as a dividend to the Borrower during such period due to tax or other cash management considerations may be included in Parent Operating Cash Flow for such period; provided that any amounts so included will not be included in Parent Operating Cash Flow if and when paid to the Borrower in any subsequent period; and

(2) Net Cash Proceeds from asset sales, Stock Dispositions or the incurrence of Debt (but only to the extent that the Net Cash Proceeds from such incurrence of Debt are paid to the Borrower or a Qualified Holding Company as a return of capital) shall not be included in Parent Operating Cash Flow for any period.

“Participant” has the meaning specified in Section 8.07(d).

“Participant Register” has the meaning specified in Section 8.07(d).

“Patriot Act” means USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as in effect from time to time.

“Payment Recipient” has the meaning assigned to it in Section 7.09(a).

“PBGC” means the U.S. Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

“Percentage” means, for any Lender on any date of determination, the percentage obtained by dividing such Lender’s Commitment on such day by the total of the Commitments on such date, and multiplying the quotient so obtained by 100%.

“Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

“Platform” has the meaning specified in Section 8.11(b).

“Potential Defaulting Lender” means, at any time, (i) any Lender with respect to which an event of the kind referred to in the definition of “Lender Insolvency Event” has occurred and is continuing in respect of any Subsidiary of such Lender, or (ii) any Lender that has notified, or whose Lender Parent or a Subsidiary thereof has notified, the Administrative Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding

obligations generally under other loan agreements, credit agreements and other similar agreements, unless such writing or statement states that such position is based on such Lender’s determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement). Any determination by the Administrative Agent that a Lender is a Potential Defaulting Lender under any of clauses (i) and (ii) above will be conclusive and binding absent manifest error, and such Lender will be deemed a Potential Defaulting Lender (subject to Section 2.19(b) hereof) upon notification of such determination by the Administrative Agent to the Borrower and the Lenders.

“Preferred Equity” means any stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company membership interests), whether with or without voting rights, that is entitled to dividends or distributions prior to the payment of dividends or distributions with respect to Common Equity.

“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Board of Governors of the Federal Reserve System in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Board of Governors of the Federal Reserve System (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

“Qualified Equity-Linked or Hybrid Securities” means preferred stock, mandatorily convertible debt securities and Hybrid Securities, in each case, that does not constitute Redeemable Stock.

“Qualified Holding Company” means any Wholly-Owned Consolidated Subsidiary of the Borrower that satisfies, and all of whose direct or indirect holding companies (other than the Borrower) are Wholly-Owned Consolidated Subsidiaries of Borrower that satisfy, the following conditions:

(i) its direct and indirect interest in any AES Business shall be limited to the ownership of Common Equity or Debt obligations of a Person with a direct or indirect interest in such AES Business;

(ii) no consensual encumbrance or restriction of any kind shall exist on its ability to make payments, distributions, loans, advances or transfers to the Borrower;

(iii) it shall not have outstanding any Debt other than guarantees of Debt under, or Liens constituting Debt under, the Loan Documents (and permitted refinancings thereof) and Debt to the Borrower or to other Qualified Holding Companies;

(iv) it shall engage in no business or other activity, shall enter into no binding agreements and shall incur no obligations (other than agreements with, and obligations to, the

Borrower or other Qualified Holding Companies) other than (A) the holding of the Common Equity and Debt obligations permitted under clause (i) above, including entering into retention agreements and subordination agreements relating to such Common Equity and Debt, (B) the holding of cash received from its Subsidiaries and the investment thereof in Temporary Cash Investments, (C) the payment of dividends and other amounts to the Borrower, (D) ordinary business development activities, (E) the making (but not the entering into binding obligations to make) of investments in AES Businesses owned by its Subsidiaries, and (F) entering into foreign exchange Hedge Agreements in respect of dividends received or expected to be received from Subsidiaries of such Qualified Holding Company, in a notional amount not to exceed $200,000,000 outstanding at any time for each Qualified Holding Company and for a term of no more than six months from the date the relevant Hedge Agreement is entered into; and

(v) is listed on Schedule II hereto (as supplemented from time to time by written notice to the Administrative Agent by the Borrower).

“Rate Contract” means any agreement with respect to any swap, cap, collar, hedge, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions.

“Recourse Debt” means, on any date, the sum of (i) Debt of the Borrower (other than undrawn letters of credit supporting business development activities) plus (ii) Derivative Obligations of the Borrower plus (iii) Off Balance Sheet Obligations of the Borrower.

“Recourse Debt to Cash Flow Ratio” means, for any period, the ratio of:

(i) the sum of the Recourse Debt as of the end of such period to;

(ii) the Adjusted Parent Operating Cash Flow during such period.

“Redeemable Stock” means any class or series of Common Equity or Hybrid Securities of any Person that by its terms or otherwise is (i) required to be redeemed prior to the date that is 180 days following the Termination Date (other than a redemption solely in the form of Common Equity that does not constitute Redeemable Stock), (ii) redeemable at the option of the holder of such class or series of Common Equity or Hybrid Securities at any time prior to the date that is 180 days following the Termination Date or (iii) convertible into or exchangeable for (unless solely at the option of such person) Common Equity or Hybrid Securities referred to in clause (i) or (ii) above or Debt having a scheduled maturity prior to the date that is 180 days following the Termination Date; provided that any Common Equity or Hybrid Securities that would not constitute Redeemable Stock but for provisions thereof giving holders thereof the right to require such person to repurchase or redeem such Common Equity or Hybrid Securities upon the occurrence of an “asset sale” or a “change of control” occurring prior to the date that is 180 days following the Termination Date shall not constitute Redeemable Stock if such Common Equity or Hybrid Securities specifically provides that such person will not repurchase or redeem any such Common Equity or Hybrid Securities pursuant to such provisions unless such repurchase or redemption is permitted under the terms of this Agreement.

“Register” has the meaning specified in Section 8.07(c).

“Related Parties” means with respect to any specified Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

“Relevant Governmental Body” means the Board of Governors of the Federal Reserve System or the NYFRB, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the NYFRB, or any successor thereto.

“Removal Effective Date” has the meaning specified in Section 7.06(b).

“Reportable Event” has the meaning assigned to that term in Title IV of ERISA.

“Resignation Effective Date” has the meaning specified in Section 7.06(a).

“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

“Revolving Credit Agreement” means the Eighth Amended and Restated Credit Agreement dated as of September 24, 2021, as amended from time to time, among the borrower, the lenders parties thereto and Citibank, N.A., as administrative agent.

“S&P” means S&P Global Ratings, acting through Standard & Poor’s Financial Services LLC business, or any successor thereto.

“Sanctioned Country” means a country, region or territory which is the subject or target of any Sanctions.

“Sanctioned Person” means (a) any Person listed in any Sanctions- related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state or His Majesty’s Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by or acting on behalf of any such Person described in the preceding clause (a) or (b), or (d) any Person, to the Borrower’s knowledge, with which any Lender is prohibited under Sanctions relevant to it from dealing or engaging in transactions. For purposes of the foregoing, control of a Person shall be deemed to include where a Sanctioned Person (i) owns or has power to vote 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of the Person or other individuals performing similar functions for the Person, or (ii) has the power to direct or cause the direction of the management and policies of the Person, whether by ownership of equity interests, contracts or otherwise.

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or by the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any EU member state, or His Majesty’s Treasury of the United Kingdom.

“SEC” means the United States Securities and Exchange Commission.

“Significant Subsidiary” means any direct or indirect Subsidiary of the Borrower if such Subsidiary’s contribution to Parent Operating Cash Flow for the four most recently completed fiscal quarters of the Borrower constitutes 20% or more of Parent Operating Cash Flow for such period.

“SMBC” has the meaning specified in the preamble hereto.

“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).

“SOFR Advance” means an Advance that bears interest as provided in Section 2.07(b).

“SPC” has the meaning specified in Section 8.07(g).

“Special Purpose Financing Subsidiary” means a Consolidated Subsidiary that has no direct or indirect interest in an AES Business and was formed solely for the purpose of issuing Trust Preferred Securities.

“Stock Disposition” means, with respect to any Person, the issuance or sale of Equity Interests of such Person other than any such issuance to directors, officers or employees pursuant to employee benefit plans in the ordinary course of business (including by way of exercise of stock options).

“Subsidiary” means, with respect to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions are at the time directly or indirectly owned by such a Person, or one or more Subsidiaries, or by such Person and one or more of its Subsidiaries.

“Support Obligations” means any financial obligation, contingent or otherwise, of any Person guaranteeing or otherwise supporting any Debt for borrowed money of any other Person in any manner, whether directly or indirectly, and including, without limitation, any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or to purchase (or to advance or supply funds for the purchase of) any security for the payment of such Debt, (ii) to purchase property, securities or services for the purpose of assuring the owner of such Debt of the payment of such Debt, (iii) to maintain working capital, equity capital, available cash or other financial statement condition of the primary obligor so as to enable the primary obligor to pay such Debt, (iv) to provide equity capital under or in respect of equity subscription arrangements so as to assure any Person with respect to the payment of such Debt, or (v) to provide financial support for the performance of, or to arrange for the performance of, any non-funded debt payment obligations of the primary obligor of such Debt.

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Body, including any interest, additions to tax or penalties applicable thereto.

“Temporary Cash Investment” means any investment in (A)(i) direct obligations of the United States or any agency thereof, or obligations guaranteed by the United States or any agency thereof; (ii) commercial paper rated at least the Minimum CP Rating by any two of Standard & Poor’s Ratings Services, Moody’s Investors Service, Inc., Fitch IBCA, Inc. and Duff & Phelps Credit Rating Co., provided that one of such two Minimum CP Ratings is by Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.; (iii) time deposits with, including certificates of deposit issued by, any office located in the United States of any bank or trust company which is organized or licensed under the laws of the United States or any state thereof and has capital, surplus and undivided profits aggregating at least $500,000,000; (iv) medium term notes, auction rate preferred stock, asset backed securities, bonds, notes and letter of credit supported instruments, issued by any entity organized under the laws of the United States, or any state or municipality of the United States and rated in any of the three highest rated categories by Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.; (v) repurchase agreements with respect to securities described in clause (i) above entered into with an office of a bank or trust company meeting the criteria specified in clause (iii) above; (vi) Eurodollar certificates of deposit issued by any bank or trust company which has capital and unimpaired surplus of not less than $500,000,000 or (vii) with respect to a Subsidiary, any category of investment designated as permissible investments under such Subsidiary’s loan documentation; provided that in each case (except clause (vii)) that such investment matures within fifteen months from the date of acquisition thereof by the Borrower or a Subsidiary and (B) registered investment companies that are “money market funds” within the meaning of Rule 2a-7 under the Investment Company Act of 1940.

“Term SOFR” means,

(a) for any calculation with respect to a SOFR Advance, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

(b) for any calculation with respect to a Base Rate Advance on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “ABR Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any ABR Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business

Day is not more than three (3) U.S. Government Securities Business Days prior to such ABR Term SOFR Determination Day.

“Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

“Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.

“Termination Date” has the meaning specified in the Revolving Credit Agreement.

“Trust Indenture Act” has the meaning specified in Section 7.08.

“Trust Preferred Securities” means, at any date, any equity interests in a Special Purpose Financing Subsidiary of the Borrower (such as those known as “TECONS”, “MIPS” or “RHINOS”): (I) that are not (A) required to be redeemed or redeemable at the option of the holder thereof prior to the fifth anniversary of the Termination Date or (B) convertible into or exchangeable for (unless solely at the option of the Borrower) equity interests referred to in clause (A) above or Debt having a scheduled maturity, or requiring any repayments or prepayments of principal or any sinking fund or similar payments in respect of principal or providing for any such repayment, prepayment, sinking fund or other payment at the option of the holder thereof prior to the fifth anniversary of the Termination Date and (II) as to which, at such date, the Borrower has the right to defer the payment of all dividends and other distributions in respect thereof for the period of at least 19 consecutive quarters beginning at such date.

“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

“U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

“U.S. Tax Compliance Certificate” shall have the meaning specified in Section 2.15(g)(ii)(B)(3).

“Wholly-Owned Consolidated Subsidiary” means any Consolidated Subsidiary all of the shares of Common Equity or other ownership interests of which (except directors’ qualifying

shares and shares owned by foreign nationals mandated by applicable law) are at the time directly or indirectly owned by the Borrower.

“Withholding Agent” means the Borrower and the Administrative Agent.

“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

SECTION 1.02. Computation of Time Periods.

In this Agreement and any other Loan Document, in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding.”

SECTION 1.03. Accounting Terms and Principles.

All accounting terms not specifically defined herein shall be construed in accordance with GAAP. It is agreed that for purposes of determining compliance with the financial covenant contained in Section 5.02(b) hereof, leases and power purchase agreements shall be treated on the basis of GAAP and the application thereof as in effect on the Effective Date. If changes in GAAP or the application thereof used in the preparation of any financial statement of the Borrower affect compliance with the financial covenant contained in Section 5.02(b) hereof, the Borrower, the Administrative Agent and the Lenders agree to negotiate in good faith such modifications as are necessary as a result of such changes in GAAP which changes shall, in the case of a change in lease accounting, produce a result which shall be consistent with the immediately preceding sentence and to amend this Agreement to effect such modifications. Until such provisions of this Agreement are modified, determinations of compliance with the financial covenant contained in Section 5.02(b) hereof shall be made on the basis of GAAP and the application thereof as in effect and applied immediately before such change became effective, and all financial statements shall be provided together with a reconciliation between the calculations and amounts set forth therein before and after giving effect to such changes in GAAP.

SECTION 1.04. Statutory Divisions.

In this Agreement, unless the context otherwise requires, for all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person and the original Person survives such division in any form for any period, then such asset, right, obligation or liability shall be deemed to have been transferred from the original Person to the subsequent Person and (b) if any new Person comes into existence, such new Person shall be

deemed to have been organized on the first date of its existence by the holders of its equity securities at such time.

SECTION 1.05 Rates.

The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Article II. AMOUNTS AND TERMS OF THE EXTENSIONS OF CREDIT

SECTION 2.01 The Commitments.

Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make a single Advance in Dollars to the Borrower on the Effective Date in an amount not to exceed the amount set forth opposite such Lender’s name on Schedule I hereto (such Lender’s “Commitment”). The Borrowing made on the Effective Date shall consist of Advances of the same Type and, in the case of SOFR Advances, having the same Interest Period made on the same day by the Lenders ratably according to their respective Commitments. Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.

SECTION 2.02. Making the Advances.

a. The Borrowing made on the Effective Date shall be made on notice, given (i) if such Borrowing is comprised of SOFR Advances, not later than 1:00 P.M. (New York City time) on the third Business Day prior to the date of the proposed Borrowing, and (ii) if such Borrowing is comprised of Base Rate Advances, not later than 1:00 P.M. (New York City time) on the date of such Borrowing, by the Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof. The notice of the Borrowing to be made on the Effective Date (a “Notice of Borrowing”) shall be

transmitted by facsimile or email in substantially the form of Exhibit A-1 hereto, specifying therein the requested (A) date of such Borrowing, (B) Type of Advances to be made in connection with such Borrowing, (C) aggregate amount of such Borrowing, (D) wire instructions of the Borrower, and (E) in the case of a Borrowing comprising SOFR Advances, initial Interest Period for such Advances. Each Lender shall, before (x) 12:00 noon (New York City time) on the date of the Borrowing, if such Borrowing is comprised of SOFR Advances, and (y) 3:00 P.M. (New York City time) on the date of the Borrowing, if such Borrowing is comprised Base Rate Advances, make available for the account of its Applicable Lending Office to the Administrative Agent at the Agent’s Account, in same day funds, such Lender’s ratable portion of such Borrowing. After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower in such manner as the Borrower shall have specified in the Notice of Borrowing.

a.The Notice of Borrowing shall be irrevocable and binding on the Borrower. If the Notice of Borrowing requests SOFR Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in the Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

a. Unless the Administrative Agent shall have received notice from a Lender prior to the time of the Borrowing made on the Effective Date that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower (following the Administrative Agent’s demand on such Lender for the corresponding amount) severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to Advances made in connection with such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement.

a.The failure of any Lender to make the Advance to be made by it as part of the Borrowing made on the Effective Date shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of such Borrowing.

SECTION 2.03. [Reserved].

SECTION 2.04. Fees.

The Borrower agrees to pay the fees payable by it in such amounts and on such terms as set forth in the Fee Letter.

SECTION 2.05. [Reserved].

SECTION 2.06 Repayment of Advances.

The Borrower shall repay the principal amount of each Advance on the Maturity Date.

SECTION 2.07. Interest on Advances.

The Borrower shall pay interest on the unpaid principal amount of each Advance from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum:

a. Base Rate Advances. If such Advance is a Base Rate Advance, a rate per annum equal at all times to the Base Rate in effect from time to time plus the Applicable Margin, payable quarterly on the last day of each March, June, September and December, on the Maturity Date and on each date such Base Rate Advance shall be Converted or paid in full.

a.SOFR Advances. If such Advance is a SOFR Advance, a rate per annum equal at all times during the Interest Period for such Advance to the sum of the Adjusted Term SOFR for such Interest Period plus the Applicable Margin, payable on the last day of each Interest Period for such SOFR Advance, on the Maturity Date and on each date such SOFR Advance shall be Converted or paid in full and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period.

SECTION 2.08. [Reserved].

SECTION 2.09. Interest Rate Determination.

a.The Administrative Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.07(a) or 2.07(b).

a.Subject to Section 2.20, if, prior to the commencement of any Interest Period for a SOFR Advance and any Benchmark Transition Event pursuant to Section 2.20:

a.the Administrative Agent determines (which determination shall be conclusive absent manifest error) that “Adjusted Term SOFR” cannot be determined pursuant to the definition thereof; or

a.the Majority Lenders notify the Administrative Agent (with a copy to the Borrower) that the Majority Lenders have determined that Adjusted Term SOFR for any requested Interest Period with respect to a proposed SOFR Advance does not adequately and fairly reflect the cost to the Lenders of funding such SOFR Advance;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter and, (x) each SOFR Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance and (y) until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, the obligation of the Lenders to make or to Convert Advances into SOFR Advances (to the extent of the affected SOFR Advances or Interest Periods) shall be suspended and the Borrower may revoke any pending request for a SOFR Advance, or Conversion of a SOFR Advance (to the extent of the affected SOFR Advance or Interest Period) or, failing that, will be deemed to have converted such request into a request for an Advance of or a Conversion to a Base Rate Advance, as applicable, in the amount specified therein.

SECTION 2.10. Conversion of Advances.

i.The Borrower may, upon notice given to the Administrative Agent not later than 1:00 P.M. (New York City time) on the third Business Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, on any Business Day, Convert all Advances of one Type made in connection with the same Borrowing into Advances of another Type; provided, however, that any Conversion of, or with respect to, any SOFR Advances into Advances of another Type shall be made on, and only on, the last day of an Interest Period for such SOFR Advances, unless the Borrower shall also reimburse the Lenders in respect thereof pursuant to Section 8.04(b) on the date of such Conversion. Each such notice of a Conversion (a “Notice of Conversion”) shall be transmitted by facsimile, in substantially the form of Exhibit A-2 hereto, specifying therein (i) the date of such Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into, or with respect to, SOFR Advances, the duration of the Interest Period for each such Advance.

i.If the Borrower shall fail to select the Type of any Advance or the duration of any Interest Period for any Borrowing comprising SOFR Advances in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01 and Section 2.10(a), or if any proposed Conversion of a Borrowing that is to comprise SOFR Advances upon Conversion shall not occur as a result of the circumstances described in subsection (c) below, or if an Event of Default has occurred and is continuing and SOFR Advances are outstanding, the Administrative Agent will forthwith so notify the Borrower and the Lenders, and such Advances will automatically, on the last day of the then existing Interest Period therefor, Convert into Base Rate Advances.

i.Each notice of Conversion given pursuant to subsection (a) above shall be irrevocable and binding on the Borrower. In the case of any Borrowing that is to comprise SOFR Advances upon Conversion, the Borrower agrees to indemnify each Lender against any loss, cost or expense incurred by such Lender if, as a result of the failure of the Borrower to satisfy any condition to such Conversion (including, without limitation, the occurrence of any Event of Default, or any event that would constitute an Event of Default with notice or lapse of time or both), such Conversion does not occur. The Borrower’s obligations under this subsection (c) shall survive the repayment of all other amounts owing to the Lenders and the Administrative Agent under this Agreement and the termination of the Commitments.

i.Notwithstanding any other provision of this Agreement to the contrary, the Borrower may not borrow SOFR Advances or Convert Advances resulting in SOFR Advances at any time an Event of Default has occurred and is continuing.

SECTION 2.11. Voluntary Prepayments.

The Borrower may, upon notice received by the Administrative Agent prior to 12:00 noon (New York City time) on any Business Day, with respect to Base Rate Advances, and upon at least two Business Days’ notice to the Administrative Agent, with respect to SOFR Advances, stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal amounts of the Advances made as part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (i) each partial prepayment shall be in an aggregate principal amount not less than $1,000,000 or any integral multiple of $100,000 in excess thereof and (ii) in the case of any such prepayment of a SOFR Advance, the Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(b) on the date of such prepayment.

SECTION 2.12. Increased Costs.

a.Increased Costs Generally. If any Change in Law shall:

i.impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

i.subject any Credit Party to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition of “Excluded Taxes” and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

i.impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Advances made by such Lender;

and the result of any of the foregoing shall be to (i) increase the cost to such Lender or such other Credit Party of making, converting to, continuing or maintaining any Advance or of maintaining its obligation to make any such Advance, or (ii) to reduce the amount of any sum received or receivable by such Lender or other Credit Party hereunder (whether of principal, interest or any other amount), for clauses (i)-(iii) of the foregoing in each case in an amount deemed by such Credit Party to be material, then, upon request of such Lender or other Credit Party, the Borrower will pay to such Lender or other Credit Party, as the case may be, such additional amount or amounts as will compensate such Lender or other Credit Party, as the case may be, for such additional costs incurred or reduction suffered.

a.Capital Requirements. If any Lender determines that any Change in Law affecting such Lender or any Applicable Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s

holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Advances made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

a.Certificates for Increased Costs. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section 2.12 and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 15 days after receipt thereof.

a.Delay in Requests. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

SECTION 2.13. Illegality.

Notwithstanding any other provision of this Agreement, if any Lender shall notify the Administrative Agent that any Change in Law makes it unlawful, or any central bank or other Governmental Body asserts that it is unlawful, for any Lender or its Applicable Lending Office to perform its obligations hereunder to make SOFR Advances or to fund or maintain SOFR Advances hereunder, (i) the obligation of the Lenders to make, or to Convert Advances into, SOFR Advances shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist and (ii) the Borrower shall forthwith prepay in full all SOFR Advances of all Lenders then outstanding, together with interest accrued thereon, unless the Borrower, within five Business Days of notice from the Administrative Agent, Converts all SOFR Advances of all Lenders then outstanding into Advances of another Type in accordance with Section 2.10.

SECTION 2.14. Payments and Computations.

a.The Borrower shall make each payment hereunder not later than 12:00 noon (New York City time) on the day when due in Dollars to the Administrative Agent without defense, setoff or counterclaim at the Agent’s Account in same day funds. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest ratably (other than amounts payable pursuant to Section 2.02(c), 2.04, 2.12, 2.15 or 8.04(b)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to any Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.07(c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder in respect of

the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.

a.The Borrower hereby authorizes each Lender, if and to the extent payment owed to such Lender is not made when due hereunder, to charge from time to time to the extent permitted by law against any or all of the Borrower’s accounts with such Lender any amount so due.

a.All computations of interest based on the Prime Rate shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on Term SOFR, the Federal Funds Rate or clause (ii) or (iii) of the definition of “Base Rate” shall be made by the Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable. Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.

a.Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest; provided, however, if such extension would cause payment of interest on or principal of SOFR Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day.

a.Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate.

a.Notwithstanding anything to the contrary contained herein, any Advance or other amount payable by the Borrower hereunder that is not paid when due (whether at stated maturity, by acceleration or otherwise), and all Advances at any time an Event of Default described in Section 6.01(a) or Section 6.01(e) shall have occurred and be continuing, shall (to the fullest extent permitted by law) bear interest from the date when due until paid in full at a rate per annum equal at all times, in the case of each Advance, to the applicable interest rate in effect from time to time for such Advance plus 2% per annum, and, in the case of other amounts, to the Base Rate plus the Applicable Margin for Base Rate Advances plus 2% per annum, payable in each case upon demand.

SECTION 2.15. Taxes.

a.Defined Terms. For purposes of this Section 2.15, the term “applicable law” includes FATCA.

a.Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Body in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Credit Party receives an amount equal to the sum it would have received had no such deduction or withholding been made.

a.Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Body in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

a.Indemnification by the Borrower. The Borrower shall indemnify each Credit Party, within 30 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Credit Party or required to be withheld or deducted from a payment to such Credit Party and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Body. A certificate as to the amount of such payment or liability delivered to the Borrower by such Credit Party (with a copy to the Administrative Agent, unless the Administrative Agent is such Credit Party), or by the Administrative Agent on its own behalf or on behalf of any other Credit Party, shall be conclusive absent manifest error.

a.Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 8.07(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Body. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).

a.Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Body pursuant to this Section 2.15, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Body evidencing such payment, a copy of the return reporting such

payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

a.Status of Lenders.

1.Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in paragraphs (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

1.Without limiting the generality of the foregoing,

a.any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

a.any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

i.in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction

of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

i.executed copies of IRS Form W-8ECI;

i.in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or W-8BEN-E; or

i.to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner;

a.any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

a.if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting

requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

a.Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.15 (including by the payment of additional amounts pursuant to this Section 2.15), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Body with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Body) in the event that such indemnified party is required to repay such refund to such Governmental Body. Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

a.FATCA. For purposes of determining withholding Taxes imposed under FATCA, from and after the Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Sections 1.1471-2(b)(2)(i) and 1.1471-2T(b)(2)(i).

a.Survival. Each party’s obligations under this Section 2.15 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the

replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.16. Sharing of Payments, Etc.

If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances made by it (other than pursuant to the Fee Letter, Section 2.02(c), 2.12, 2.15 or 8.04(b)) in excess of its ratable share of payments on account of the Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Advances made by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them, provided, however, that (i) if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (A) the amount of such Lender’s required repayment to (A) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered and (ii) the provisions of this Section 2.16 shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Advances to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section 2.16 shall apply). The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.16 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.

SECTION 2.17. Noteless Agreement; Evidence of Indebtedness.

i.Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Advance made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

i.The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Advance made hereunder, the Type thereof and the Interest Period (if any) with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof.

i.The entries maintained in the accounts maintained pursuant to subsections (a) and (b) above shall be prima facie evidence of the existence and amounts of the obligations therein recorded; provided, however, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay such obligations in accordance with their terms.

i.Any Lender may request that its Advances be evidenced by one or more promissory notes. In such event, the Borrower shall prepare, execute and deliver to such Lender one or more promissory notes payable to such Lender and in a form acceptable to the Borrower and the Administrative Agent. Thereafter, the Advances evidenced by such note(s) and interest thereon shall at all times (including after any assignment pursuant to Section 8.07) be represented by notes from the Borrower, payable to the payee named therein or any assignee pursuant to Section 8.07, except to the extent that any such Lender or assignee subsequently returns any such notes for cancellation and requests that such Borrowings once again be evidenced as in subsections (a) and (b) above.

SECTION 2.18 [Reserved].

SECTION 2.19 Defaulting Lenders.

a.Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender’s ability to approve any amendment, waiver or consent shall be limited to the extent set forth in the second paragraph of Section 8.01.

a.If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender or a Potential Defaulting Lender, as the case may be, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, such Lender will, to the extent applicable, purchase at par such portion of outstanding Advances of the other Lenders and/or make such other adjustments as the Administrative Agent may determine to be necessary to cause the Advances held by the Lenders to be on a pro rata basis in accordance with their respective Percentages, whereupon such Lender will cease to be a Defaulting Lender or Potential Defaulting Lender and will be a Non-Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender or Potential Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender or Potential Defaulting Lender.

SECTION 2.20. Benchmark Replacement Setting.

Notwithstanding anything to the contrary herein or in any other Loan Document:

i.Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders. No replacement of a Benchmark with a

Benchmark Replacement pursuant to this Section 2.20(a)(i) will occur prior to the applicable Benchmark Transition Start Date.

i.Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

i.Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will notify the Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 2.20(d) and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.20, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.20.

i.Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

i.Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of SOFR

Advances to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances, as applicable. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.

Article III. CONDITIONS OF BORROWING

SECTION 3.01. Conditions Precedent to Effectiveness.

The effectiveness of this Agreement and the obligation of each Lender to make its Advances hereunder on the Effective Date is subject to satisfaction of each the following conditions precedent on or before such date:

i.The Administrative Agent shall have received the following on or before the Effective Date, each dated such date (except for the Disclosure Documents), in form and substance satisfactory to the Administrative Agent:

1.(A) This Agreement, duly executed by each of the parties hereto, and (B) a promissory note payable to each Lender that requests one pursuant to Section 2.17, duly completed and executed by the Borrower;

1.Certified copies of the resolutions of the Board of Directors of the Borrower approving this Agreement, and of all documents evidencing other necessary corporate action with respect to this Agreement;

1.A certificate of the Secretary or an Assistant Secretary of the Borrower certifying (A) the names and true signatures of the officers of the Borrower authorized to sign this Agreement and the other documents to be delivered hereunder; (B) that attached thereto are true and correct copies of the organizational documents of the Borrower, in each case as in effect on the Effective Date; and (C) that attached thereto are true and correct copies of all governmental and regulatory authorizations and approvals (if any) required for the due execution, delivery and performance by the Borrower of this Agreement;

1.Copies of all the Disclosure Documents (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (iv) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Effective Date);

1.One or more favorable opinions of counsel (including the opinion of in-house counsel and special New York counsel) for the Borrower in form and substance satisfactory to the Administrative Agent; and

1.At least three (3) Business Days prior to the Effective Date, if the Borrower qualifies as a “legal entity customer” under the Beneficial

Ownership Regulation, the Borrower must deliver a Beneficial Ownership Certification in relation to Borrower.

i.The Administrative Agent shall have received the fees payable pursuant to the Fee Letter.

i.The Administrative Agent shall have received from the Borrower a notice requesting such Borrowing as required by Section 2.02.

i.The following statements shall be true (and each of the giving of the applicable Notice of Borrowing and the acceptance by the Borrower of any proceeds of a Borrowing shall constitute a representation and warranty by the Borrower that on the date of such Borrowing such statements are true):

i.The representations and warranties contained in Section 4.01 are true and correct on and as of the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; and

i.No event has occurred and is continuing, or would result from such Borrowing or from the application of the proceeds therefrom that constitutes an Event of Default or would constitute an Event of Default with notice or lapse of time or both.

i.The Administrative Agent shall have received such other certifications, opinions, financial or other information, approvals and documents as the Administrative Agent or any Lender may reasonably request through the Administrative Agent.

Article IV. REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrower.

The Borrower represents and warrants as follows:

a.The Borrower is (i) duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and (ii) duly qualified to do business as a foreign organization in each jurisdiction in which the nature of the business conducted or the property owned, operated or leased by it requires such qualification, except where failure to so qualify would not materially adversely affect its business, condition (financial or otherwise), operations, properties or prospects.

a.The execution, delivery and performance by the Borrower of each Loan Document to which it is, or is to become, a party, are within the Borrower’s organizational powers, have been duly authorized by all necessary organizational action and do not contravene (i) the Borrower’s organizational documents, (ii) law applicable to the Borrower or its properties, or (iii) any contractual or legal restriction binding on or affecting the Borrower or its properties, in the case of clauses (ii) and (iii) above, except where such failure would result in a Material Adverse Effect.

a.No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and

performance by the Borrower of this Agreement (including obtaining any Extensions of Credit under this Agreement) or any other Loan Document to which it is, or is to become, a party.

a.This Agreement and the other Loan Documents to which it is, or is to become, a party have been or will be (as the case may be) duly executed and delivered by it, and this Agreement is, and upon execution and delivery thereof each other Loan Document will be, the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, subject, however, to any applicable bankruptcy, reorganization, rearrangement, moratorium or similar laws affecting generally the enforcement of creditors’ rights and remedies and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

a.The consolidated financial statements of the Borrower and its Subsidiaries as of December 31, 2021, and for the year ended on such date, as set forth in the Borrower’s Annual Report on Form 10-K for the fiscal year ended on such date, as filed with the SEC, and the consolidated financial statements of the Borrower and its Subsidiaries as of June 30, 2022, and for the fiscal quarter ended on such date, as set forth in the Borrower’s Quarterly Report on Form 10-Q for the fiscal quarter ended on such date, as filed with the SEC, copies of each of which have been furnished to each Bank, fairly present the consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the consolidated results of the operations of the Borrower and its Subsidiaries for the period ended on such date, in accordance with GAAP, subject, in the case of such financial statements for the fiscal quarter ended June 30, 2022, to year-end adjustments and the absence of detailed footnotes. Except as disclosed in the Disclosure Documents, since December 31, 2021, there has been no material adverse change in the financial condition or operations of the Borrower.

a.Except as disclosed in the Disclosure Documents, there is no pending or threatened action or proceeding affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect. There has been no change in any matter disclosed in such filings that could reasonably be expected to result in such a Material Adverse Effect.

a.[reserved].

a.The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Borrowing will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.

a.The Borrower is not required to register as an “investment company” under the Investment Company Act of 1940, as amended.

a.Except as could not reasonably be expected to result in a Material Adverse Effect, no ERISA Termination Event has occurred, or is reasonably expected to occur, with respect to any ERISA Plan.

a.[reserved]

a.Except as could not reasonably be expected to result in a Material Adverse Effect, the Borrower has not incurred, and does not reasonably expect to incur, any withdrawal liability under ERISA to any Multiemployer Plan.

a.All information heretofore furnished by the Borrower to the Administrative Agent or any Lender for purposes of or in connection with any Loan Document or any transaction contemplated hereby or thereby is, and all such information hereafter furnished by the Borrower to the Administrative Agent or any Lender will be, true and accurate in all material respects on the date as of which such information is stated or certified in the light of the circumstances under which such information was provided (as modified or supplemented by other information so furnished, when taken together as a whole and with the Disclosure Documents); provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based on assumptions believed to be reasonable at the time, it being recognized by the Lenders that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results. The Borrower has disclosed to the Lenders, in the Disclosure Documents or otherwise in writing, any and all facts specific to the Borrower and its Subsidiaries and known as of the date hereof to a responsible officer of the Borrower that could reasonably be expected to result in a Material Adverse Effect, which materially and adversely affect or may affect (to the extent the Borrower can now reasonably foresee), the business, operations or financial condition of the Borrower and its Consolidated Subsidiaries, taken as a whole, or the ability of the Borrower to perform its obligations under the Loan Documents.

a.As of the date delivered, the information included in the Beneficial Ownership Certification, if any, is true and correct in all respects.

a.The Borrower has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. None of (a) the Borrower or any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower, or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. The Borrower and its Subsidiaries are in compliance in all material respects with Anti-Corruption Laws and applicable Sanctions.

a.[reserved].

a.The Borrower has filed all federal, state and other Tax returns and reports required to be filed, and have paid all federal, state and other Taxes, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable, except (a) Taxes that that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are being maintained in accordance with GAAP or (b) to the extent that the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Article V. COVENANTS OF THE BORROWER

SECTION 5.01. Affirmative Covenants.

So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will, unless the Majority Lenders shall otherwise consent in writing:

a.Keep Books; Existence; Maintenance of Properties; Compliance with Laws; Insurance; Taxes; Inspection Rights.

i.keep, proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities;

i.except as otherwise permitted by Section 5.02(c), preserve and keep in full force and effect its existence and preserve and keep in full force and effect its licenses, rights and franchises to the extent necessary to carry on its business; provided, however, that the Borrower may change its form of organization from a corporation to a limited liability company or from a limited liability company to a corporation if (A) such change shall not affect any obligations of the Borrower under the Loan Documents and (B) the Borrower shall deliver to the Administrative Agent (x) prompt notice of such change, (y) certified true and correct copies of the organizational documents of the Borrower after giving effect to such change and (z) all information requested by the Administrative Agent or any Lender in order to comply with its obligations under the Patriot Act referred to in Section 8.14 and the Beneficial Ownership Regulation;

i.maintain and keep, or cause to be maintained and kept,all property useful and necessary in its business in good working order and condition, except: (A) for ordinary wear and tear or (B) where failure to do so would not result in a Material Adverse Effect;

i.comply, and cause its Subsidiaries to comply, with all applicable laws, rules, regulations and orders, except to the extent that the failure to comply could not reasonably be expected to result in a Material Adverse Effect, such compliance to include, without limitation, paying before the same become delinquent all Taxes, assessments and governmental charges imposed upon it or its property, except to the extent being contested in good faith by appropriate proceedings diligently conducted and adequate reserves for the payment thereof in accordance with GAAP are being maintained, and compliance with ERISA and Environmental Laws;

i.maintain insurance with responsible and reputable insurance companies or associations or through its own program of self-insurance in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which it operates and furnish to the Administrative Agent, within a reasonable time after written request therefor, such information presented in reasonable detail as to the insurance carried as any Lender, through the Administrative Agent, may reasonably request;

i.pay and discharge its obligations and liabilities in the ordinary course of business, except (A) to the extent that such obligations and liabilities are being contested in

good faith by appropriate proceedings or (B) where failure to do so would not result in a Material Adverse Effect; and

i.from time to time upon reasonable notice (but no more frequently than once per calendar year unless a default or Event of Default shall have occurred and be continuing), permit or arrange for the Administrative Agent, the Lenders and their respective agents and representatives to inspect the records and books of account of the Borrower and its Subsidiaries during regular business hours; provided, that neither the Borrower nor any Subsidiary shall be required to disclose to any Lender or its agents or representatives any information which is subject to the attorney-client privilege or attorney work-product privilege properly asserted by the applicable Person to prevent the loss of such privilege in connection with such information or which is prevented from disclosure pursuant to a confidentiality agreement with third parties or which otherwise is prohibited from being disclosed by applicable law.

a.Use of Proceeds. Use the proceeds of the Advances made under this Agreement solely to fund investments in, and working capital, capital expenditures and other general corporate purposes relating to, present and future solar, wind, hydro, storage battery and other renewable energy projects, installations, improvements and businesses and purposes reasonably related or ancillary thereto (including repayment of Green SOFR Advances and Green Base Rate Advances (each as defined in the Revolving Credit Agreement).

a.Reporting Requirements. Furnish to the Lenders:

a.as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of the Borrower, (A) consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such quarter, (B) consolidated statements of income and retained earnings of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such quarter and (C) consolidated statements of cash flows of the Borrower and its Subsidiaries for such fiscal quarter, and a statement of cash flow distributions to the Borrower by project for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, each certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;

a.as soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the annual report for such year for the Borrower and its Subsidiaries, containing consolidated financial statements for such year, including a statement of cash flow distributions to the Borrower by project for such year, certified without qualification by Ernst & Young LLP (or such other nationally recognized public accounting firm selected by the Borrower), and certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;

a.concurrently with the delivery of the financial statements specified in clauses (i) and (ii) above, a certificate of the chief financial officer, treasurer, assistant treasurer or controller of the Borrower, (A) stating that no Event of Default has occurred and is continuing, or if an Event of Default has occurred and is continuing, a statement setting forth details of such Event of Default, as the case may be, and the action that the Borrower has taken and proposes to take with respect thereto and (B) setting forth in a true and correct manner, the calculation of the ratio contemplated by Section 5.02(b) hereof, as of the date of the most recent financial statements accompanying such certificate, to show the Borrower’s

compliance with or the status of the financial covenant contained in Section 5.02(b) hereof;

a.within five days after the Borrower has knowledge of the occurrence of each Event of Default and each event that, with the giving of notice or lapse of time or both, would constitute an Event of Default, continuing on the date of such statement, a statement of the duly authorized officer of the Borrower setting forth details of such Event of Default or event, as the case may be, and the actions that the Borrower has taken and proposes to take with respect thereto;

a.promptly after the sending or filing thereof, copies of all reports that the Borrower sends to any of its securities holders, and copies of all reports and registration statements which the Borrower files with the SEC or any national securities exchange pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended;

a.as soon as possible and in any event within 30 days after the Borrower knows or has reason to know that any ERISA Termination Event with respect to any ERISA Plan has occurred, a statement of a duly authorized officer of the Borrower describing such ERISA Termination Event and the action, if any, that the Borrower proposes to take with respect thereto;

a.promptly and in any event within ten Business Days after receipt thereof by the Borrower from the PBGC, copies of each notice received by the Borrower of the PBGC’s intention to terminate any ERISA Plan or to have a trustee appointed to administer any ERISA Plan; and

a.such other information respecting the condition or operations, financial or otherwise, of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender through the Administrative Agent may from time to time reasonably request.

The financial statements and reports described in paragraphs (i), (ii) and (vi) above will be deemed to have been delivered hereunder if such documents are publicly available on EDGAR or on the Borrower’s website no later than the date specified for delivery of the same under paragraph (i), (ii) or (vi), as applicable, above. If any financial statements or report described in (i) and (ii) above is due on a date that is not a Business Day, then such financial statements or report shall be delivered on the next succeeding Business Day.

a.Compliance with Anti-Corruption Laws and Sanctions. Maintain in effect and enforce policies and procedures designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

SECTION 5.02. Negative Covenants.

So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will not, without the written consent of the Majority Lenders:

a.Liens, Etc. Create or suffer to exist, or permit any Subsidiary to create or suffer to exist, any Lien upon or with respect to any properties (including, without limitation, any shares of any class of equity security of any of its Significant Subsidiaries), in each case to

secure or provide for the payment of Debt, other than: (i) Liens in existence on the Effective Date and, in the case of Liens securing obligations in excess of $25,000,000, described on Schedule 5.02(a); (ii) Liens for taxes, assessments or governmental charges or levies to the extent not past due, or which are being contested in good faith in appropriate proceedings diligently conducted and for which the Borrower has provided adequate reserves for the payment thereof in accordance with GAAP; (iii) pledges or deposits in the ordinary course of business to secure obligations under worker’s compensation laws or similar legislation; (iv) other pledges or deposits in the ordinary course of business (other than for borrowed monies) that, in the aggregate, are not material to the Borrower; (v) purchase money mortgages or other liens or purchase money security interests upon or in any property acquired or held by the Borrower in the ordinary course of business to secure the purchase price of such property or to secure indebtedness incurred solely for the purpose of financing the acquisition of such property; (vi) Liens imposed by law such as materialmen’s, mechanics’, carriers’, workers’ and repairmen’s Liens and other similar Liens arising in the ordinary course of business for sums not yet due or currently being contested in good faith by appropriate proceedings diligently conducted; (vii) Liens in respect of Debt of Subsidiaries that is not Recourse Debt; (viii) attachment, judgment or other similar Liens arising in connection with court proceedings, provided that such Liens, in the aggregate, shall not exceed $50,000,000 at any one time outstanding; (ix) other Liens not otherwise referred to in the foregoing clauses (i) through (viii) above, provided that such Liens, in the aggregate, shall not secure obligations in excess of $100,000,000 at any one time; (x) Liens created for the sole purpose of extending, renewing or replacing in whole or in part Debt secured by any Lien referred in the foregoing clauses (i) through (vii) above, provided that the principal amount of indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement and that such extension, renewal or replacement, as the case may be, shall be limited to all or a part of the property or Debt that secured the Lien so extended, renewed or replaced (and any improvements on such property); (xi) Liens on rights or other property purported to be transferred to the issuer of Eligible Securitization Bonds or another entity to secure Eligible Securitization Bonds; provided, further, that no Lien permitted under the foregoing clauses (i) through (xi) shall be placed upon any shares of any class of equity security of any Significant Subsidiary unless the obligations of the Borrower to the Lenders hereunder are simultaneously and ratably secured by such Lien pursuant to documentation satisfactory to the Lenders; or (xii) Liens securing up to $1.6 billion in principal amount of the Initial Notes (as defined in the AES Indenture as in effect on the date hereof) upon and following the occurrence of any Reversion Date (as defined in the AES Indenture as in effect on the date hereof).

a.Financial Covenant. Permit the Recourse Debt to Cash Flow Ratio as of the last day of each March, June, September and December to be more than 5.75 to 1.00.

a.Mergers, Etc. Merge with or into or consolidate with or into any other Person, except that the Borrower may merge with any other Person, provided that, immediately after giving effect to any such merger, (i) the Borrower is the surviving Person or the merger is to effect a change in the Borrower’s form of organization permitted by the proviso in Section 5.01(a)(ii), (ii) no event shall have occurred and be continuing that constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both, and (iii) the Borrower shall not allow its property to be subject to any Lien which would not be permissible with respect to it or its property under this Agreement on the date of such transaction.

a.Disposition of Assets. Not, nor permit any of its Subsidiaries to, convey, transfer or otherwise dispose of a material portion of its assets (other than (u) conveyances, transfers and dispositions to any of its Subsidiaries, (v) any conveyance, sale, lease, transfer or other disposition of inventory, in any case in the ordinary course of business, (w) leases and other leases, licenses, subleases or sublicenses, in each case, granted to others in the ordinary course of business and which do not materially interfere with the business of the Borrower and its Subsidiaries taken as a whole, (x) any conveyance, sale, lease, transfer or other disposition of obsolete or worn out assets or assets no longer useful in the business of the Borrower and its Subsidiaries, (y) licenses of intellectual property entered into in the ordinary course of business and (z) any conveyance, sale, transfer or other disposition of cash and/or cash equivalents) if a default or an Event of Default occurs as a result of such conveyance, transfer or disposition. The Borrower shall not in any event, in one or a series of related transactions, convey, transfer or otherwise dispose of 50% or more of its total assets.

a.No Violation of Anti-Corruption Laws or Sanctions. Request any Borrowing, or use or permit any of its Subsidiaries or its or their respective directors, officers, employees and agents to use the proceeds of any Borrowing (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

Article VI. EVENTS OF DEFAULT AND REMEDIES

SECTION 6.01. Events of Default.

Each of the following events shall constitute an “Event of Default” hereunder:

a.The Borrower shall fail to pay any principal of any Advance when the same becomes due and payable, or shall fail to pay interest thereon or any other amount payable under this Agreement within five (5) Business Days after the same becomes due and payable; or

a.Any representation or warranty made by the Borrower herein or by the Borrower (or any of its officers) in connection with this Agreement shall prove to have been incorrect or misleading in any material respect when made or deemed made; or

a.The Borrower shall fail to perform or observe (i) any term, covenant or agreement contained in Section 5.01(b) or 5.02 or (ii) any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if the failure to perform or observe such other term, covenant or agreement shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or

a.The Borrower or any Significant Subsidiary shall fail to pay any principal of or premium or interest on any Debt of the Borrower or such Significant Subsidiary that is outstanding in a principal amount in excess of $200,000,000 in the aggregate (but excluding Debt hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue

after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or

a.The occurrence of any event or the existence of any condition under any agreement or instrument relating to any Debt of a Significant Subsidiary that is outstanding in a principal amount in excess of $200,000,000 in the aggregate, which occurrence or event results in the declaration (after the applicable grace period, if any) of such Debt being due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or

a.The Borrower or any Significant Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any Significant Subsidiary seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Borrower or any Significant Subsidiary shall take any corporate or other organizational action to authorize or to consent to any of the actions set forth above in this subsection (f); or

a.Any judgment or order for the payment of money in excess of $200,000,000 shall be rendered against the Borrower or any Significant Subsidiary and such judgment shall not have been vacated or discharged or such judgment or execution thereof shall, for a period of 60 days, failed to be stayed (pending appeal or otherwise); or

a.(i) An ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall fail to maintain the minimum funding standards required by Section 412 of the Code for any plan year or a waiver of such standard is sought or granted under Section 412(d) of the Code, or (ii) an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower is, shall have been or will be terminated or the subject of termination proceedings under ERISA, or (iii) the Borrower or any ERISA Affiliate of the Borrower has incurred or will incur a liability to or on account of an ERISA Plan under Section 4062, 4063 or 4064 of ERISA, or (iv) any ERISA Termination Event with respect to an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall have occurred, and in the case of any event described in clauses (i) through (iv), such event could reasonably be expected to result in a Material Adverse Effect; or

a.(i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Borrower (or other securities convertible into such securities) representing more than 40.0% of the combined voting power of all securities of the Borrower entitled to vote in the election of directors; or (ii) during any period of twelve consecutive calendar months, individuals who were directors of the Borrower on the first day of such period (or who were appointed or nominated for election as directors of the Borrower by at least a majority of the

individuals who were directors on the first day of such period) shall cease to constitute a majority of the Board of Directors of the Borrower.

SECTION 6.02. Remedies.

If any Event of Default shall occur and be continuing, then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower or any Significant Subsidiary under the Federal Bankruptcy Code, (A) the obligation of each Lender to make Advances shall automatically be terminated and (B) the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

Article VII. THE AGENT

SECTION 7.01. Authorization and Action.

Each Lender hereby appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As to any matters not expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Advances), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Majority Lenders, and such instructions shall be binding upon all Lenders; provided, however, that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law. The Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement.

SECTION 7.02. Administrative Agent’s Reliance, Etc.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, the Administrative Agent: (i) may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this

Agreement; (iii) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement on the part of the Borrower or to inspect the property (including the books and records) of the Borrower; (iv) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, this Agreement or any other instrument or document furnished pursuant hereto; and (v) shall incur no liability under or in respect of this Agreement by acting upon any notice, consent, certificate or other instrument or writing (which may be by facsimile, e-mail, electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and signed or sent by the proper party or parties.

SECTION 7.03. SMBC and Affiliates.

With respect to its Commitment and the Advances made by it, SMBC shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the Administrative Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include SMBC in its individual capacity. SMBC and its affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, the Borrower, any of its Subsidiaries and any Person who may do business with or own securities of the Borrower or any such Subsidiary, all as if SMBC were not the Administrative Agent and without any duty to account therefor to the Lenders.

SECTION 7.04. Lender Credit Decision.

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 4.01(e) and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement.

SECTION 7.05. Indemnification.

The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower), ratably according to the respective principal amounts of the Advances then outstanding to each of them (or if no Advances are at the time outstanding, ratably according to the respective amounts of their Commitments), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Administrative Agent (in its capacity as such) under this Agreement, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this

Agreement, to the extent that such expenses are reimbursable by the Borrower but for which the Administrative Agent is not reimbursed by the Borrower.

SECTION 7.06. Successor Administrative Agent.

a.The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), to appoint a successor, which shall be a bank with an office in the United States of America and a combined capital and surplus of at least $500,000,000; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Majority Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that in no event shall any such successor Administrative Agent be a Defaulting Lender. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

a.If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (v) of the definition thereof, the Majority Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), appoint a successor; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Majority Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

a.The Majority Lenders may at any time, to the extent permitted by applicable law, by notice in writing to the Borrower and to the Person serving as Administrative Agent remove such Person as Administrative Agent and, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), appoint a successor; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing. If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment by the Removal Effective Date, then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. On the Removal Effective Date, the Borrower shall pay in full all amounts due and payable to the removed Administrative Agent hereunder and under the other Loan Documents.

a.With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all

payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Majority Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 8.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

SECTION 7.07. No Other Duties.

Anything herein to the contrary notwithstanding, none of the Sole Bookrunner, Lead Arrangers, Green Loan Coordinator, Syndication Agent or Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in their respective capacities, as applicable, as Administrative Agent or Lender hereunder.

SECTION 7.08. Trust Indenture Act.

In the event that the Administrative Agent or any of its Affiliates shall be or become an indenture trustee under the Trust Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in respect of any securities issued or guaranteed by the Borrower, the parties hereto acknowledge and agree that any payment or property received in satisfaction of or in respect of any of the Borrower’s obligations hereunder by or on behalf of SMBC in its capacity as Administrative Agent for the benefit of any Lender hereunder (other than SMBC or an Affiliate of SMBC) and that is applied in accordance with the terms hereof shall be deemed to be exempt from the requirements of Section 311 of the Trust Indenture Act pursuant to Section 311(b)(3) of the Trust Indenture Act.

SECTION 7.09. Erroneous Payments.

1.If the Administrative Agent (x) notifies a Lender or Credit Party, or any Person who has received funds on behalf of a Lender or Credit Party (any such Lender, Credit Party or other recipient, a “Payment Recipient”), that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under Section 7.09(b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Credit Party or other Payment Recipient on its behalf) (any such funds, whether transmitted or received as a payment, prepayment or

repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and pending its return or repayment as contemplated below in this Section 7.09 and held in trust for the benefit of the Administrative Agent, and such Lender or Credit Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

1.Without limiting Section 7.09(a), each Lender or Credit Party, or any Person who has received funds on behalf of a Lender or Credit Party, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender or Credit Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then, in each such case:

(i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) in the case of immediately preceding clause (z), an error and mistake has been made, in each case, with respect to such payment, prepayment or repayment; and

(ii) such Lender or Credit Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 7.09(b).

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this Section 7.09(b) shall not have any effect on a Payment Recipient’s obligations pursuant to Section 7.09(a) or on whether or not an Erroneous Payment has been made.

a.Each Lender or Credit Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender or Credit Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender or Credit Party under any Loan Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under Section 7.09(a).

a.(i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with Section 7.09(a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Advances (but not its Commitments) with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Advances (but not Commitments) of the Erroneous Payment Impacted Class, the “Erroneous Payment Deficiency Assignment”) (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to SyndTrak, DebtDomain, IntraLinks, ClearPar or any like web portal as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Advances to the Borrower or the Administrative Agent (but the failure of such Person to deliver any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender and (D) the Administrative Agent and the Borrower shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Administrative Agent will reflect in the Register its ownership interest in the Advances subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

(ii) Subject to Section 8.07 (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrower or otherwise)), the Administrative Agent may, in its discretion, sell any Advances acquired pursuant to an Erroneous Payment

Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Advance (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Advances acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Advances are then owned by the Administrative Agent) and (y) may, in the sole discretion of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

a.The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender or Credit Party, to the rights and interests of such Lender or Credit Party, as the case may be) under the Loan Documents with respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the Borrower’s obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such obligations in respect of Advances that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any obligations owed by the Borrower hereunder; provided that this Section 7.09 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the obligations of the Borrower relative to the amount (and/or timing for payment) of the obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; provided, further, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, equal to the amount of funds received by the Administrative Agent from the Borrower for the purpose of making a payment hereunder that resulted in such Erroneous Payment.

a.To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on “discharge for value” or any similar doctrine.

a.Each party’s obligations, agreements and waivers under this Section 7.09 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all obligations (or any portion thereof) under any Loan Document.

Article VIII. MISCELLANEOUS

SECTION 8.01. Amendments, Etc.

Subject to Section 2.20, no amendment or waiver of any provision of this Agreement, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the following: (a) waive any of the conditions specified in Section 3.01 or 3.02, (b) increase the Commitments of the Lenders, extend the Commitments of the Lenders or subject the Lenders to any additional obligations, (c) reduce the principal of, or interest (or rate of interest) on, the Advances or any fees or other amounts payable hereunder, (d) postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (e) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances, or change the definition of “Majority Lenders” or the number of Lenders that shall be required for the Lenders or any of them to take any action hereunder, (f) change the provisions requiring pro rata sharing of payments under Section 2.14 or amend or waive Section 2.16 or (g) amend this Section 8.01; and provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement, and provided further, that this Agreement may be amended and restated without the consent of any Lender or the Administrative Agent if, upon giving effect to such amendment and restatement, such Lender or the Administrative Agent, as the case may be, shall no longer be a party to this Agreement (as so amended and restated) or have any Commitment or other obligation hereunder and shall have been paid in full all amounts payable hereunder to such Lender or the Administrative Agent, as the case may be.

Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, to the fullest extent permitted by applicable law, such Lender will not be entitled to vote in respect of amendments and waivers hereunder, and the Commitments and the outstanding Advances of such Lender hereunder will not be taken into account in determining whether the Majority Lenders or all of the Lenders, as required, have approved any such amendment or waiver (and the definition of “Majority Lenders” will automatically be deemed modified accordingly for the duration of such period); provided, that any such amendment or waiver that would increase or extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the consent of such Defaulting Lender.

SECTION 8.02. Notices, Etc.

a.Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including via electronic communication pursuant to Section 8.11) and mailed, emailed, sent by facsimile or delivered, if to the Borrower, at its address at The AES Corporation, 4300 Wilson Boulevard, Arlington, VA 22203, fax: (703) 528-4510, email: aescorplegalnotices@aes.com; if to any Bank, at its Applicable Lending Office specified in its Administrative Questionnaire; if to any other Lender, at its Applicable Lending Office specified in the Assignment and Assumption pursuant to which it became a Lender and if to the Administrative Agent, at its address at 277 Park Avenue, New York, NY, 10172, Attention: Agency Loan Services Department; E-mails: BCDADAgencySDAD@smbcgroup.com, AgencyServices@smbcgroup.com or, as to each party, at such other address as shall be designated by such party in a written notice

to the other parties. All such notices and communications shall be deemed to have been given on the date of receipt (i) if mailed, sent by facsimile or delivered by hand or overnight courier service and received during the normal business hours of such party as provided in this Section or in accordance with the latest unrevoked direction from such party given in accordance with this Section and (ii) if emailed and received in accordance with Section 8.11. If such notices and communications are received after the normal business hours of such party, receipt shall be deemed to have been given upon the opening of the recipient’s next Business Day. Except as otherwise provided in Section 5.01(c), notices and other communications given by the Borrower to the Administrative Agent shall be deemed given to the Lenders.

a.Change of Address, etc. Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

SECTION 8.03. No Waiver; Remedies.

No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

SECTION 8.04. Costs and Expenses; Indemnification.

a.The Borrower agrees to pay on demand all costs and expenses incurred by the Administrative Agent in connection with the preparation, execution, delivery, syndication administration, modification and amendment of this Agreement and the other Loan Documents, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to its rights and responsibilities under this Agreement. Any invoices to the Borrower with respect to the aforementioned expenses shall describe such costs and expenses in reasonable detail. The Borrower further agrees to pay on demand all costs and expenses, if any (including, without limitation, counsel fees and expenses of outside counsel and of internal counsel), incurred by the Administrative Agent and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of, and the protection of the rights of the Lenders under, this Agreement and the other Loan Documents, including, without limitation, reasonable counsel fees and expenses in connection with the enforcement of rights under this Section 8.04(a).

a.If any payment of principal of, or Conversion of, any SOFR Advance is made other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.09, 2.10, 2.11 or 2.13, acceleration of the maturity of the Advances pursuant to Section 6.02, assignment to another Lender upon demand of the Borrower pursuant to Section 8.07(e) for any other reason, the Borrower shall, upon demand by any Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses which it may reasonably incur as a result of such payment or Conversion, including, without limitation, any loss (including loss of anticipated profits upon such Lender’s representation to the Borrower that it has made reasonable efforts to mitigate such loss), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired

by any Lender to fund or maintain such Advance. Any Lender making a demand pursuant to this Section 8.04(b) shall provide the Borrower with a written certification of the amounts required to be paid to such Lender, showing in reasonable detail the basis for the Lender’s determination of such amounts; provided, however, that no Lender shall be required to disclose any confidential or proprietary information in any certification provided pursuant hereto, and the failure of any Lender to provide such certification shall not affect the obligations of the Borrower hereunder.

a.The Borrower hereby agrees to indemnify and hold each Lender, the Administrative Agent and each Related Party of any of the foregoing Persons (each, an “Indemnified Person”) harmless from and against any and all claims, damages, losses, liabilities, costs or expenses (including reasonable attorney’s fees and expenses, whether or not such Indemnified Person is named as a party to any proceeding or is otherwise subjected to judicial or legal process arising from any such proceeding) that any of them may incur or which may be claimed against any of them by any Person or entity by reason of or in connection with the execution, delivery or performance of this Agreement or any other Loan Document or any transaction contemplated hereby or thereby, or the use by the Borrower or any of its Subsidiaries of the proceeds of any Advance, AND THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH INDEMNIFIED LIABILITIES ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNIFIED PERSON, except that no Indemnified Person shall be entitled to any indemnification hereunder to the extent that such claims, damages, losses, liabilities, costs or expenses are finally determined in a non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person. The Borrower’s obligations under this Section 8.04(c) shall survive the repayment of all amounts owing to the Lenders and the Administrative Agent under this Agreement and the termination of the Commitments. If and to the extent that the obligations of the Borrower under this Section 8.04(c) are unenforceable for any reason, the Borrower agrees to make the maximum contribution to the payment and satisfaction thereof which is permissible under applicable law.

a.The Borrower also agrees not to assert, and hereby waives, any claim against any Lender or any of such Lender’s affiliates (each, a “Lender-Related Party”), or any of their respective directors, officers, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to this Agreement or any other Loan Document, any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances. No Lender-Related Party shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

SECTION 8.05. Right of Set-off.

Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 6.02 to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 6.02, each Lender is hereby authorized at any time and from time to time, to the fullest

extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement, whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. Each Lender agrees promptly to notify the Borrower after any such set-off and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender under this Section 8.05 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Lender may have.

SECTION 8.06. Binding Effect.

This Agreement shall become effective when it shall have been executed by the Borrower, the Lenders and the Administrative Agent and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign or delegate any rights hereunder (or any interest herein) or duties or obligations under this Agreement or any other Loan Document without the prior written consent of the Administrative Agent and all the Lenders.

SECTION 8.07. Assignments and Participations.

1.Successors and Assigns by Lenders Generally. No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

1.Assignments by Lenders. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Advances at the time owing to it); provided that any such assignment shall be subject to the following conditions:

a.Minimum Amounts.

i.in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Advances at the time owing to it (determined after giving effect to such assignments) that equal at least the amount specified in subsection (b)(i)(B) of this Section in the

aggregate or in the case of an assignment to a Lender or an Affiliate of a Lender, no minimum amount need be assigned; and

i.in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Advances outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

a.Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Advances or the Commitment assigned.

a.Required Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

i.the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender or an Affiliate of a Lender; and

i.the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender with a Commitment or an Affiliate of such Lender.

a.Assignment and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.

a.No Assignment to Certain Persons. No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) to any Defaulting Lender, any Potential Defaulting Lender or any of their respective Subsidiaries, or any

Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender, a Potential Defaulting Lender or any of their respective Subsidiaries.

a.No Assignment to Natural Persons. No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.12, 2.15 and 8.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

1.Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at its address referred to in Section 8.02 a copy of each Assignment and Assumption delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances owing to, each Lender from time to time (the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.

1.Participations. Each Lender may at any time sell participations to one or more banks, financial institutions or other entities (other than a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it); provided, however, that (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the maker

of any such Advance for all purposes of this Agreement and (iv) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 7.05 with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to the provision in Section 8.01 relating to amendments, waivers or consents requiring unanimous consent of the Lenders that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12 and 2.15 (subject to the requirements and limitations therein) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as though it were a Lender, provided such Participant agrees to be subject to Section 2.16 as though it were a Lender. A Participant shall not be entitled to receive any greater payment under Sections 2.12 and 2.15 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.15 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.15 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Advances or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, advances, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, advance, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

1.Mitigation Obligations; Replacement of Lenders.

a.Designation of a Different Applicable Lending Office. If any Lender requests compensation under Section 2.12, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.15, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Applicable Lending Office for funding or booking its Advances hereunder or to assign its rights and obligations

hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or Section 2.15, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

a.Replacement of Lenders. If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.15 and, in each case, such Lender has declined or is unable to designate a different Applicable Lending Office in accordance with Section 8.07(e)(i), or if any Lender is a Non-Consenting Lender, a Defaulting Lender or a Potential Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 8.07(b)), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.12 or Section 2.15) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

i.no event has occurred and is continuing that constitutes an Event of Default or that would constitute an Event of Default but for the requirement that notice be given or time elapse or both;

i.the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 8.07(b);

i.such Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 8.04(b)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

i.in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter;

i.such assignment does not conflict with applicable law; and

i.in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

1.Certain Pledges. Anything in this Section 8.07 to the contrary notwithstanding, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any central bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

1.Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”) of such Granting Lender identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Advance that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any such SPC to make any Advance, (ii) if such SPC elects not to exercise such option or otherwise fails to provide all or any part of such Advance, the Granting Lender shall be obligated to make such Advance pursuant to the terms hereof and (iii) no SPC or Granting Lender shall be entitled to receive any greater amount pursuant to Section 2.12 or 8.04(b) than the Granting Lender would have been entitled to receive had the Granting Lender not otherwise granted such SPC the option to provide any Advance to the Borrower. The making of an Advance by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Advance were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would otherwise be liable so long as, and to the extent that, the related Granting Lender provides such indemnity or makes such payment. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against or join any other person in instituting against such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof. Notwithstanding the foregoing, the Granting Lender unconditionally agrees to indemnify the Borrower, the Administrative Agent and each Lender against all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be incurred by

or asserted against the Borrower, the Administrative Agent or such Lender, as the case may be, in any way relating to or arising as a consequence of any such forbearance or delay in the initiation of any such proceeding against its SPC. Each party hereto hereby acknowledges and agrees that no SPC shall have the rights of a Lender hereunder, such rights being retained by the applicable Granting Lender. Accordingly, and without limiting the foregoing, each party hereby further acknowledges and agrees that no SPC shall have any voting rights hereunder and that the voting rights attributable to any Advance made by an SPC shall be exercised only by the relevant Granting Lender and that each Granting Lender shall serve as the administrative agent and attorney-in-fact for its SPC and shall on behalf of its SPC receive any and all payments made for the benefit of such SPC and take all actions hereunder to the extent, if any, such SPC shall have any rights hereunder. In addition, notwithstanding anything to the contrary contained in this Agreement any SPC may (i) with notice to, but without the prior written consent of any other party hereto, assign all or a portion of its interest in any Advances to the Granting Lender and (ii) disclose on a confidential basis any information relating to its Advances to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This Section 8.07(g) may not be amended without the prior written consent of each Granting Lender, all or any part of whose Advance is being funded by an SPC at the time of such amendment.

SECTION 8.08. Governing Law.

THIS AGREEMENT AND ANY NOTE ISSUED PURSUANT TO SECTION 2.17 SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 8.09. Consent to Jurisdiction; Waiver of Jury Trial.

a.To the fullest extent permitted by law, the Borrower hereby irrevocably (i) submits to the exclusive jurisdiction of any New York State or Federal court sitting in New York City, Borough of Manhattan, and any appellate court from any thereof in any action or proceeding arising out of or relating to this Agreement, any other Loan Document, and (ii) agrees that all claims in respect of such action or proceeding shall be heard and determined in such New York State court or in such Federal court. The Borrower hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding. The Borrower also irrevocably consents, to the fullest extent permitted by law, to the service of any and all process in any such action or proceeding by the mailing by certified mail of copies of such process to the Borrower at its address specified in Section 8.02. The Borrower agrees, to the fullest extent permitted by law, that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

a.THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.

SECTION 8.10 Execution in Counterparts.

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

The words “execution,” “signed,” “signature,” and words of like import in this Agreement and the other Loan Documents, including any Assignment and Assumption and any certificate or other instrument delivered pursuant to this Agreement or other Loan Document, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender or the Administrative Agent reasonably requests that any party hereto manually execute any Loan Document, certificate or instrument that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

SECTION 8.11. Electronic Communications.

a.The Borrower hereby agrees that, to the extent the Borrower is so able, it will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to this Agreement, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an existing, borrowing (including any election of an interest rate or Interest Period relating thereto), (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any default or Event of Default under this Agreement or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any borrowing hereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to AgencyServices@smbcgroup.com and alexandre_mezademiranda@smbcgroup.com. In addition, the Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner specified in this Agreement but only to the extent requested by the Administrative Agent. To the extent the Borrower is unable to deliver any portion of the Communications in an electronic/soft medium form, the Borrower shall promptly deliver hard copies of such Communications to the Administrative Agent.

a.The Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications on DebtDomain, the Internet or another similar electronic system (the “Platform”). The Borrower acknowledges that the distribution of material through an electronic medium is

not necessarily secure and that there are confidentiality and other risks associated with such distribution.

a.THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE PLATFORM OR OTHERWISE THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

a.The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of this Agreement. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of this Agreement. Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of (i) such Lender’s e- mail address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address.

a.Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to this Agreement in any other manner specified in this Agreement.

SECTION 8.12. Severability.

Any provision of this Agreement that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non- authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 8.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited

by Debtor Relief Laws, as determined in good faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the extent not so limited.

SECTION 8.13 Headings.

Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

SECTION 8.14. USA PATRIOT Act Notice.

Each Lender that is subject to the Patriot Act or the Beneficial Ownership Regulation and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower pursuant to the requirements of the Patriot Act and the Beneficial Ownership Regulation that it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act and the Beneficial Ownership Regulation. The Borrower shall, and shall cause each of its Subsidiaries to, provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act and the Beneficial Ownership Regulation.

SECTION 8.15. Confidentiality.

Each of the Administrative Agent and each Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives on a “need to know” basis (it being understood that the Persons to which such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 8.15, to (A) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (C) any rating agency, (D) the CUSIP Service Bureau or any similar organization or (E) any credit insurance provider relating to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the extent such Information

a.becomes publicly available other than as a result of a breach of this Section 8.15 or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders

in connection with the administration of this Agreement, the other Loan Documents and the Commitments.

For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries, provided that, in the case of information received from the Borrower or any of its Subsidiaries after the Effective Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 8.15 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

SECTION 8.16. Entire Agreement.

This Agreement, the Fee Letter and the Notes issued hereunder constitute the entire agreement among the parties relative to the subject matter hereof. Any previous agreement among the parties with respect to the subject matter hereof is superseded by this Agreement, except (i) as expressly agreed in any such previous agreement and (ii) for the Fee Letter. Except as is expressly provided for herein, nothing in this Agreement, expressed or implied, is intended to confer upon any party other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement.

SECTION 8.17. No Fiduciary Duty.

The Credit Parties and their respective Affiliates (collectively, solely for purposes of this Section, the “Lender Parties”), may have economic interests that conflict with those of the Borrower, its securities holders and/or their Affiliates. The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender Party, on the one hand, and the Borrower, its securities holders or its Affiliates, on the other hand. The Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lender Parties, on the one hand, and the Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender Party has assumed an advisory or fiduciary responsibility in favor of the Borrower, its securities holders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender Party has advised, is currently advising or will advise the Borrower, its securities holders or its Affiliates on other matters) or any other obligation to the Borrower except the obligations expressly set forth in the Loan Documents, and (y) each Lender Party is acting solely as principal and not as the agent or fiduciary of the Borrower, its management, securities holders, creditors or any other Person. The Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. The Borrower agrees that it will not claim that any Lender Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such transaction or the process leading thereto.

SECTION 8.18. [Reserved].

SECTION 8.19. [Reserved].

SECTION 8.20. Acknowledgment and Consent to Bail-In of Affected Financial Institutions.

Solely to the extent that an Affected Financial Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Credit Party that is an Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

i.the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Credit Party that is an Affected Financial Institution; and

i.the effects of any Bail-in Action on any such liability, including, if applicable:

1.a reduction in full or in part or cancellation of any such liability;

1.a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

1.the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

SECTION 8.21. Certain ERISA Matters.

a.Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:

i.Such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments or this Agreement,

i.The transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate

accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96- 23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement,

(iii)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Advances, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement, or

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

a.In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

SECTION 8.22. [Reserved].

SECTION 8.23. Interest Rate Limitation.

Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Advance, together with all fees, charges and other amounts which are treated as interest on such Advance under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender making such Advance in accordance with applicable law, the rate of interest payable in respect of such Advance hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and charges that would have been payable in respect of such Advance but were not payable as a result of the operation of this Section 8.23 shall be cumulated and the interest and charges payable to such Lender in respect of other Advances or periods shall be increased (but not above the Maximum Rate applicable thereto) until such cumulated amount, together with interest thereon at the Applicable Margin to the date of repayment, shall have been received by such Lender.

[The remainder of this page intentionally left blank.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

THE AES CORPORATION
By:
	Name:
	Title:

SUMITOMO MITSUI BANKING CORPORATION, as Administrative Agent and Bank
By:
	Name:
	Title:

BANKS:

MUFG BANK, LTD., as Bank
By:
	Name:
	Title:

THE BANK OF NOVA SCOTIA, as Bank
By:
	Name:
	Title:

SCHEDULE I COMMITMENT SCHEDULE

Name of Lender	Commitment Amount
Sumitomo Mitsui Banking Corporation	$100,000,000
MUFG Bank, Ltd.	$50,000,000
The Bank of Nova Scotia	$50,000,000

TOTAL $200,000,000

SCHEDULE II QUALIFIED HOLDING COMPANIES

AES Argentina Holdings S.C.A.

AES Chaparron I, Ltd.

AES Chaparron II, Ltd.

AES Chigen Holdings Ltd.

AES Climate Solutions Holdings, L. P.

AES Climate Solutions Holdings, LLC

AES Climate Solutions Holdings I, LLC

AES Climate Solutions Holdings II, LLC

AES Communications Latin America, Inc.

AES EDC Holding, LLC
AES Energy B.V.

AES GEI US Finance, Inc.

AES International Holdings Ltd.

AES LNG Holding II, Ltd.

AES Oasis Holdco (Cayman) Ltd.

AES Oman Holdings Ltd.
AES Overseas Holdings (Cayman) Ltd.

AES Platense Investments Uruguay S.C.A.

AES Songas Holdings Ltd.

AES Transgas I, Ltd.

AES Transgas II, Ltd.

AES Venezuela Finance Ltd.

Cemig II C.V.

Global Energy Holdings CV
Inversiones LK SpA

La Plata II, Ltd.

La Plata III C.V.

Mercury Chile Holdco, Ltd.

Mercury Chile Co. II, Ltd.

SCHEDULE 5.02(a) EXISTING LIENS

None.

EX-21.1

The AES Corporation

Q3 2022 Form 10-Q Exhibit 21.1

Name	Jurisdiction of Formation/Organization
12963 Main Solar 1, LLC	Delaware
241 Knapp Road Solar, LLC	Delaware
241 Knapp Solar 2, LLC	Delaware
25 Ashdown Road Solar, LLC	Delaware
52RS 8me LLC	Delaware
61LK 8me, LLC	Delaware
65HK 8me LLC	Delaware
67RK 8me LLC	Delaware
87RL 8ME LLC	Delaware
Aberdeen Solar LLC	Delaware
AC Criminal Courts Complex SPE2 Limited Liability Company	New Jersey
ACE DevCo NC, LLC	Delaware
ACE Development Company II, LLC	Delaware
ACE Development Company, LLC	Delaware
ACED CES OpCo Holdings, LLC	Delaware
ACED CES OpCo, LLC	Delaware
ACED DevCo Warehouse Borrower, LLC	Delaware
ACED DevCo Warehouse Pledgor, LLC	Delaware
ACED Finance 3 HoldCo, LLC	Delaware
ACED Finance 3, LLC	Delaware
ACED Mountain View FinCo, LLC	Delaware
ACED MSL Pledge, LLC	Delaware
ACED OpCo D, LLC	Delaware
ACED OpCo F, LLC	Delaware
ACED OpCo Holdings Pledgor, LLC	Delaware
ACED OpCo Holdings, LLC	Delaware
ACED OpCo Warehouse Borrower, LLC	Delaware
ACED OpCo Warehouse Pledgor, LLC	Delaware
ACED Procurement Holdings, LLC	Delaware
ACED Procurement, LLC	Delaware
ACED US Wind Holdings I, LLC	Delaware
ACED Warehouse Tax Equity SellCo, LLC	Delaware
Adera Solar, LLC	Delaware
AES (India) Private Limited	India
AES (NI) Limited	Northern Ireland
AES Accabonac Solar, LLC	Delaware
AES Adler Creek Solar, LLC	Delaware
AES Africa Power Company B.V.	The Netherlands
AES AgriVerde Holdings, B.V.	The Netherlands

AES AgriVerde Services (Ukraine) Limited Liability Company	Ukraine
AES Agua Fria ES, LLC	Delaware
AES Alamitos Energy, LLC	Delaware
AES Alamitos, L.L.C.	Delaware
AES Alicura Holdings S.C.A.	Argentina
AES Americas International Holdings, Limited	Bermuda
AES Andes S.A.	Chile
AES Andres (BVI) Ltd.	British Virgin Islands
AES Andres BV	Netherlands
AES Andres DR, S.A.	Dominican Republic
AES Argentina Generación S.A.	Argentina
AES Argentina Investments, Ltd.	Cayman Islands
AES Argentina Operations, Ltd.	Cayman Islands
AES Arinos Solar Holding S.A.	Brazil
AES Arinos Solar I S.A.	Brazil
AES Arinos Solar II S.A.	Brazil
AES Arinos Solar III S.A.	Brazil
AES Arinos Solar IV S.A.	Brazil
AES Arinos Solar V S.A.	Brazil
AES Arinos Solar VI S.A.	Brazil
AES Arinos Solar VII S.A.	Brazil
AES Arinos Solar VIII S.A.	Brazil
AES Arlington Services, LLC	Delaware
AES Aurora Holdings, Inc.	Delaware
AES Aurora, Inc.	Delaware
AES Bainbridge Holdings, LLC	Delaware
AES Bainbridge, LLC	Delaware
AES Baird Solar, LLC	Delaware
AES Ballylumford Holdings Limited	England & Wales
AES Baltic Holdings BV	The Netherlands
AES Barka Services, Inc.	Delaware
AES Barry Limited	United Kingdom
AES Barry Operations Ltd.	United Kingdom
AES Beaver Creek Ranch Solar, LLC	Delaware
AES Beaver Valley, L.L.C.	Delaware
AES Belfast West Power Limited	Northern Ireland
AES Belleville Solar, LLC	Delaware
AES Bend Solar I, LLC	Delaware
AES Bend Solar II, LLC	Delaware
AES Big Sky, L.L.C.	Virginia
AES Black River Solar, LLC	Delaware
AES Botswana Holdings B.V.	The Netherlands
AES Brasil B.V.	Netherlands

AES Brasil Energia S.A.	Brazil
AES Brasil Ltda	Brazil
AES Brasil Operações S.A.	Brazil
AES Brazil International Holdings, Limited	Bermuda
AES Brazil, Inc.	Delaware
AES Broadalbin Solar, LLC	Delaware
AES Bulgaria B.V.	The Netherlands
AES Bulgaria Holdings BV	The Netherlands
AES Cajuína AB1 Holdings S.A.	Brazil
AES Cajuína AB2 Holdings S.A.	Brazil
AES Cajuína AB3 Holdings S.A.	Brazil
AES Calaca Pte. Ltd.	Singapore
AES Calaca Pte. Ltd. - Philippine Branch	Philippines
AES Caracoles SRL	Argentina
AES Carbon Exchange, Ltd.	Bermuda
AES Carbon Holdings, LLC	Virginia
AES Caribbean Finance Holdings, Inc.	Delaware
AES Caribbean Investment Holdings, Ltd.	Cayman Islands
AES Cayman Guaiba, Ltd.	Cayman Islands
AES CC&T International, Ltd.	British Virgin Islands
AES CE PNC I Managing Member, LLC	Delaware
AES CE PNC I, LLC	Delaware
AES CE RS XVI Managing Member, LLC	Delaware
AES CE RS XVI, LLC	Delaware
AES CE Solutions OH, LLC	Delaware
AES CE Solutions TX, LLC	Texas
AES CE Solutions, LLC	Delaware
AES CE SVB 1 Managing Member, LLC	Delaware
AES CE SVB 1, LLC	Delaware
AES Central America Electric Light, LLC	Virginia
AES Central American Holdings, Inc.	Delaware
AES Central American Investment Holdings, Ltd.	Cayman Islands
AES Central Line 2022 Class B, LLC	Delaware
AES Ceprano Energia SRL	Italy
AES CFE Holding II LLC	Delaware
AES CFE Holding III LLC	Delaware
AES CFE Holding LLC	Delaware
AES Changuinola, S.R.L.	Panama
AES Chhattisgarh Energy Private Limited	India
AES Chile SpA	Chile
AES Chivor S.A.	Colombia
AES Clean Energy Development Holdings, LLC	Delaware
AES Clean Energy Development, LLC	Delaware

AES Clean Energy Services, LLC	Delaware
AES CLESA Y Compania, Sociedad en Comandita de Capital Variable	San Salvador
AES Climate Solutions Holdings I, LLC	Delaware
AES Climate Solutions Holdings II, LLC	Delaware
AES Climate Solutions Holdings, L.P.	Bermuda
AES Climate Solutions Holdings, LLC	Delaware
AES Colombia & Cia S.C.A. E.S.P.	Colombia
AES Colon Development, S. de R.L.	Panama
AES Colon Holding, S. de R.L.	Panama
AES Columbia Power, LLC	Delaware
AES Comercializadora de Energia Ltda.	Brazil
AES Communications Latin America, Inc.	Delaware
AES Communications, LLC	Virginia
AES Connecticut Management, L.L.C.	Delaware
AES Coop Holdings, LLC	Delaware
AES Costa Rica Energy SRL	Costa Rica
AES Costa Rica Holdings, Ltd.	Cayman Islands
AES Daigle Solar, LLC	Delaware
AES DE AssetCo VI, LLC	Delaware
AES DE AssetCo VII, LLC	Delaware
AES DE Class B I, LLC	Delaware
AES DE Class B II, LLC	Delaware
AES DE Class B III, LLC	Delaware
AES DE Class B IV, LLC	Delaware
AES DE Class B V, LLC	Delaware
AES DE Class B VI, LLC	Delaware
AES DE Class B VII, LLC	Delaware
AES DE Class B VIII, LLC	Delaware
AES DE Class B XIV, LLC	Delaware
AES DE Construction, LLC	Delaware
AES DE DevCo I, LLC	Delaware
AES DE Holdings I, LLC	Colorado
AES DE Holdings III, LLC	Delaware
AES DE Holdings Omnibus Pledgor, LLC	Delaware
AES DE Holdings V Pledgor, LLC	Delaware
AES DE Holdings V, LLC	Delaware
AES DE Holdings VI, LLC	Delaware
AES DE Holdings VII Pledgor, LLC	Delaware
AES DE Holdings VII, LLC	Delaware
AES DE Holdings VIII Pledgor, LLC	Delaware
AES DE Holdings VIII, LLC	Delaware
AES DE Manager, LLC	Colorado
AES DE REC Co VI, LLC	Delaware

AES DE REC Co VII, LLC	Delaware
AES DE RS I, LLC	Delaware
AES DE RS II, LLC	Delaware
AES DE RS III, LLC	Delaware
AES DE RS IV, LLC	Delaware
AES DE RS IX, LLC	Delaware
AES DE RS V, LLC	Delaware
AES DE RS VI, LLC	Delaware
AES DE RS VII, LLC	Delaware
AES DE RS VIII, LLC	Delaware
AES DE RS X, LLC	Delaware
AES DE RS XI, LLC	Delaware
AES DE RS XII, LLC	Delaware
AES DE RS XIV, LLC	Delaware
AES DE RS XV, LLC	Delaware
AES DE Solar Access Holdings I, LLC	Delaware
AES Deepwater, LLC	Delaware
AES DE-GIE, LLC	Delaware
AES DevCo Warehouse Borrower, LLC	Delaware
AES DevCo Warehouse Pledgor, LLC	Delaware
AES Digital Experience, LLC	Delaware
AES Distribuidores Salvadorenos Limitada	San Salvador
AES Distribuidores Salvadorenos Y Compania S en C de C.V.	San Salvador
AES Distributed Holdings, LLC	Delaware
AES Dominicana Renewable Energy, S.A.	Dominican Republic
AES DPL Holdings, LLC	Delaware
AES DPP Holdings, Ltd.	Cayman Islands
AES Drax Financing, Inc.	Delaware
AES Drax Power Finance Holdings Limited	United Kingdom
AES EDC Holding, L.L.C.	Delaware
AES El Salvador Electric Light, LLC	Virginia
AES El Salvador Trust	Panama
AES El Salvador, LLC	Virginia
AES El Salvador, S.A. de C.V.	El Salvador
AES Electric Ltd.	United Kingdom
AES Electroinversora B.V.	The Netherlands
AES Elpa S.A.	Brazil
AES Empresa Electrica de El Salvador Limitada de Capital Variable	El Salvador
AES Energia SRL	Italy
AES Energy B.V.	Netherlands
AES Energy Services Inc.	Ontario
AES Energy Solutions, LLC	Delaware
AES Energy Storage Arizona, LLC	Delaware

AES Energy Storage Holdings	Mauritius
AES Energy Storage Holdings, LLC	Delaware
AES Energy Storage Zeeland B.V.	The Netherlands
AES Energy Storage, LLC	Delaware
AES Energy, Ltd.	Bermuda
AES Energy, Ltd. (Argentina Branch)	Argentina
AES Engineering, LLC	Delaware
AES ES Alamitos 2, LLC	Delaware
AES ES Alamitos, LLC	Delaware
AES ES Antelope Expansion 2, LLC	Delaware
AES ES Deepwater, LLC	Delaware
AES ES Gilbert, LLC	Delaware
AES ES Holdings, LLC	Delaware
AES ES Tait, LLC	Delaware
AES ES Westwing, LLC	Delaware
AES Europe Services EOOD	Bulgaria
AES Fahnestock Solar, LLC	Delaware
AES Finance 3 HoldCo, LLC	Delaware
AES Finance 3, LLC	Delaware
AES Finance and Development, Inc.	Delaware
AES FleetLine, LLC	Delaware
AES Florestal Ltda.	Brazil
AES Fonseca Energia Limitada de C.V.	El Salvador
AES Foreign Energy Holdings, LLC	Delaware
AES Gabreski Solar, LLC	Delaware
AES Gas Supply & Distribution Ltd.	Cayman Islands
AES GEI US Finance, Inc.	Delaware
AES GEO Energy OOD	Bulgaria
AES GF1 Holdings S.A.	Brazil
AES GF2 Holdings S.A.	Brazil
AES Glengarry Farms Solar, LLC	Delaware
AES Global Insurance Company	Vermont
AES Global Mobility Services, LLC	Delaware
AES Global Power Holdings B.V.	The Netherlands
AES Globales B.V.	The Netherlands
AES Government, LLC	Delaware
AES GPH Holdings, Inc.	Delaware
AES Grand Dominicana, Ltd.	Cayman Islands
AES Great Cove Holdings, LLC	Delaware
AES Greece Solar, LLC	Delaware
AES Grid Stability, LLC	Delaware
AES Griggs Solar, LLC	Delaware
AES Guaiba II Empreendimentos Ltda	Brazil

AES Guatemala Servicios Comerciales y Compañía Limitada	Guatemala
AES Guayama Holdings BV	The Netherlands
AES Hawaii Foundation	Hawaii
AES Hawaii Management Company, LLC	Delaware
AES Hawaii, LLC	Delaware
AES Heckscher Solar, LLC	Delaware
AES HECO 2022 Class B, LLC	Delaware
AES HECO 2023 Class B, LLC	Delaware
AES High Mesa Solar, LLC	Delaware
AES Highgrove Holdings, L.L.C.	Delaware
AES Highgrove, L.L.C.	Delaware
AES Hispanola Holdings BV	The Netherlands
AES Hispanola Holdings II BV	The Netherlands
AES Holdings B.V.	The Netherlands
AES Holdings B.V. - Vietnam Rep Office	Philippines
AES Holdings Brasil II Ltda.	Brazil
AES Holdings Brasil Ltda.	Brazil
AES Holland Solar, LLC	Delaware
AES Honduras Servicios Comerciales, S. de R.L. de C.V.	Honduras
AES Horizons Holdings BV	The Netherlands
AES Horizons Investments Limited	United Kingdom
AES Huntington Beach Development, L.L.C.	Delaware
AES Huntington Beach Energy, LLC	Delaware
AES Huntington Beach, L.L.C.	Delaware
AES IB Valley Corporation	India
AES Ilumina Holdings, LLC	Delaware
AES Ilumina Member, LLC	Delaware
AES Ilumina, LLC	Puerto Rico
AES India Energy Solutions Private Limited	India
AES India Holdings (Mauritius)	Mauritius
AES India, L.L.C.	Delaware
AES Indiana Devco Holdings 1, LLC	Indiana
AES Indiana Devco Holdings 2, LLC	Indiana
AES Indiana Holdings, L.L.C.	Delaware
AES Integrated Energy, LLC	Delaware
AES Intercon II, Ltd.	Cayman Islands
AES International Holdings II, Ltd.	British Virgin Islands
AES International Holdings III, Ltd.	British Virgin Islands
AES International Holdings, Ltd.	British Virgin Islands
AES Investment Chile SpA	Chile
AES Italia S.r.l	Italy
AES James Baird Solar, LLC	Delaware
AES Johnsville Solar, LLC	Delaware

AES Jordan Holdco, Ltd.	Cayman Islands
AES Jordan PSC	Jordan
AES Jordan Solar B.V.	Netherlands
AES Juniper Point Holdings, LLC	Delaware
AES K2 Limited	United Kingdom
AES Kalaeloa Venture, L.L.C.	Delaware
AES Kekaha Solar, LLC	Delaware
AES Keystone, L.L.C.	Delaware
AES Khanya - Kwazulu Natal (Proprietary) Limited	South Africa
AES King Harbor, Inc.	Delaware
AES Kuihelani Solar, LLC	Delaware
AES LA FIT Dedeaux, LLC	Delaware
AES LA FIT Francisco, LLC	Delaware
AES LA FIT Sun Valley, LLC	Delaware
AES Landfill Carbon, LLC	Virginia
AES Latin America S. de R.L.	Panama
AES Laubacher Solar, LLC	Delaware
AES Laurel Mountain Repower Development Company, LLC	Delaware
AES Laurel Mountain, LLC	Delaware
AES Lawai Solar, LLC	Delaware
AES Levant Holdings B.V.	Netherlands
AES Levant Holdings BV Jordan PSC	Jordan
AES Lumos Holdings, LLC	Delaware
AES Maritza East 1 Services Ltd.	Cyprus
AES Maritza East I EOOD	Bulgaria
AES Maritza East I Services EOOD	Bulgaria
AES Marketing and Trading, LLC	Delaware
AES Mayan Holdings, S. de R.L. de C.V.	Mexico
AES Merida B.V.	The Netherlands
AES Merida III, S. de R.L. de C.V.	Mexico
AES Merida Management Services, S. de R.L. de C.V.	Mexico
AES Mexico Farms, L.L.C.	Delaware
AES Mexico Generation Holdings, S. de R.L. de C.V.	Mexico
AES MicroPlanet, Ltd.	British Virgin Islands
AES Mid East Holdings 2, Ltd.	Cayman Islands
AES Mong Duong Holdings B.V.	The Netherlands
AES Mong Duong Power Co. Ltd.	Vietnam
AES Mong Duong Project Holdings B.V.	The Netherlands
AES Monroe Holdings B.V.	The Netherlands
AES Monroe Solar A, LLC	Delaware
AES Monroe Solar B, LLC	Delaware
AES Monroe Solar C, LLC	Delaware
AES Monroe Solar D, LLC	Delaware

AES Monroe Solar E, LLC	Delaware
AES Mount Vernon B.V.	The Netherlands
AES Mountain View Solar, LLC	Delaware
AES NA Central, L.L.C.	Delaware
AES Nejapa Gas Ltda. de C.V.	El Salvador
AES Nejapa Services Ltda. de C.V.	El Salvador
AES Next B.V.	Netherlands
AES Next Operations, LLC	Delaware
AES Next Solar, LLC	Delaware
AES Next Solutions, S.R.L.	Panama
AES Next, LLC	Delaware
AES NEXT, Ltda. de C.V.	El Salvador
AES North America Development, LLC	Delaware
AES Oahu Wind Holdings, LLC	Delaware
AES Oahu, LLC	Delaware
AES Oasis Holdco, Inc.	Delaware
AES Oasis Ltd.	Cayman Islands
AES Oasis Mauritius Inc	Mauritius
AES Odyssey, L.L.C.	Delaware
AES Ohio Generation, LLC	Ohio
AES OpCo E, LLC	Delaware
AES OpCo G, LLC	Delaware
AES OpCo Holdings Pledgor, LLC	Delaware
AES OpCo Holdings, LLC	Delaware
AES OpCo Warehouse Borrower, LLC	Delaware
AES OpCo Warehouse Pledgor, LLC	Delaware
AES Operaciones Laguna del Rey, S. de R.L. de C.V.	Mexico
AES OPGC Holding	Mauritius
AES Orissa Distribution Private Limited	India
AES Orphan Farm Solar, LLC	Delaware
AES Overseas Holdings (Cayman) Ltd.	Cayman Islands
AES Overseas Holdings Limited	United Kingdom
AES Pacific Ocean Holdings B.V.	The Netherlands
AES Pacific, Inc.	Delaware
AES Pak Holdings, Ltd.	British Virgin Islands
AES Pakistan (Pvt) Ltd.	Pakistan
AES Pakistan Operations, Ltd.	Delaware
AES Panama Generation Holdings S.R.L.	Panama
AES Panamá, S.R.L.	Panama
AES Parana Gas S.A.	Argentina
AES Parana Holdings, Ltd.	Cayman Islands
AES Parana Operations S.R.L.	Argentina
AES Parana Uruguay S.R.L	Uruguay

AES Pasadena, Inc.	Delaware
AES Peace Bear Ranch Solar, LLC	Delaware
AES Pelletier Solar, LLC	Delaware
AES Phil Investment Pte. Ltd.	Singapore
AES Puerto Rico Services, Inc.	Delaware
AES Puerto Rico, Inc.	Cayman Islands
AES Puerto Rico, L.P.	Delaware
AES Ravich North Solar, LLC	Delaware
AES Redondo Beach, L.L.C.	Delaware
AES Renewable Development Holdings, LLC	Delaware
AES Renewable Holdings DevCo NC, LLC	Delaware
AES Renewable Holdings, LLC	Delaware
AES Renewable Power Group, S.R.L.	Dominican Republic
AES RH RS XIX, LLC	Delaware
AES RH RS XVII, LLC	Delaware
AES RH RS XVIII, LLC	Delaware
AES Riverside Holdings, LLC	Delaware
AES Rochester Solar, LLC	Delaware
AES Rt 5 Storage Solar, LLC	Delaware
AES SACEF Investment, LLC	Delaware
AES San Nicolas B.V.	The Netherlands
AES SC Holdings, LLC	Delaware
AES Services Philippines Inc.	Philippines
AES Services, Inc.	Delaware
AES Servicios America S.R. L.	Argentina
AES Servicios Electricos, S. de R.L. de C.V.	Mexico
AES Serviços TC Ltda.	Brazil
AES Shady Point, LLC	Delaware
AES Silk Road Energy LLC	Russia
AES Silk Road, LLC	Delaware
AES Solar Bulgaria Kalipetrovo EOOD	Bulgaria
AES Solar Bulgaria Pchelarovo EOOD	Bulgaria
AES Solar Energy Coöperatieuf U.A.	The Netherlands
AES Solar Energy, LLC	Delaware
AES Solar Espana I B.V.	The Netherlands
AES Solar Espana II B.V.	The Netherlands
AES Solar Holdings, LLC	Delaware
AES Solar Power PR, LLC	Delaware
AES Solar Villamesias, S.L.	Spain
AES Sole Italia S.r.L.	Italy
AES Soluciones, Limitada de Capital Variable	El Salvador
AES Solutions Management, LLC	Delaware
AES Solutions, LLC	Virginia

AES South Africa Peakers Holdings (Proprietary) Limited	South Africa
AES South America Holdings Cooperatief U.A.	Netherlands
AES South America Holdings I B.V.	The Netherlands
AES South America Holdings II B.V.	The Netherlands
AES South American Holdings, Ltd.	Cayman Islands
AES South Point, Ltd.	Cayman Islands
AES Southland Development, LLC	Delaware
AES Southland Energy Company Holdings I, LLC	Delaware
AES Southland Energy Holdings II, LLC	Delaware
AES Southland Energy Holdings, LLC	Delaware
AES Southland Energy, LLC	Delaware
AES Stendts Solar, LLC	Delaware
AES Stonehaven Holding, Inc.	Delaware
AES Stony Creek Solar, LLC	Delaware
AES Strategic Equipment Holdings Corporation	Delaware
AES Sul, L.L.C.	Delaware
AES Sunken Meadow Solar, LLC	Delaware
AES Swiss Lake Holdings B.V.	The Netherlands
AES Taiwan Ltd.	Taiwan
AES Tamuin Development Services S. de R.L. de C.V.	Mexico
AES TEG II Mexican Holdings, S. de R.L. de C.V.	Mexico
AES TEG II Mexican Investments, S. de R.L. de C.V.	Mexico
AES TEG II Operations, S. de R.L. de C.V.	Mexico
AES TEG Mexican Holdings, S. de R.L. de C.V.	Mexico
AES TEG Mexican Investments S. de R.L. de C.V.	Mexico
AES TEG Operations, S. de R.L. de C.V.	Mexico
AES TEGTEP Holdings B.V.	The Netherlands
AES TEP Power II Investments Limited	United Kingdom
AES Texas Funding III, L.L.C.	Delaware
AES Thames, L.L.C.	Delaware
AES Thomas Holdings BV	The Netherlands
AES Tietê Eólica S.A.	Brazil
AES Tietê Integra Soluções em Energia Ltda	Brazil
AES Tonawanda Solar, LLC	Delaware
AES Transpower Pte Ltd -- Hong Kong Branch	Hong Kong
AES Trust III	Delaware
AES Tucano Holding I S.A.	Brazil
AES Tucano Holding II S.A.	Brasil
AES U.S. Holdings, LLC	Delaware
AES U.S. Investments, Inc.	Indiana
AES U.S. Solar, LLC	Delaware
AES UK Datacenter Services Limited	United Kingdom
AES UK Holdings Limited	United Kingdom

AES UK Power Financing II Ltd	United Kingdom
AES UK Power Financing Limited	United Kingdom
AES UK Power Holdings Limited	United Kingdom
AES UK Power, L.L.C.	Delaware
AES Union de Negocios, S.A. de C.V.	El Salvador
AES US BESS Holdings, LLC	Delaware
AES US Generation Holdings, LLC	Delaware
AES US Generation, LLC	Delaware
AES US Services, LLC	Delaware
AES US Wind Development II, LLC	Delaware
AES US Wind Development, L.L.C.	Delaware
AES US Wind Generation Holdings, LLC	Delaware
AES US Wind Holdings, LLC	Delaware
AES Venezuela Finance	United Kingdom
AES Volcan Holdings B.V.	Netherlands
AES Waikoloa Solar, LLC	Delaware
AES Warehouse Tax Equity SellCo, LLC	Delaware
AES Warrior Run, L.L.C.	Delaware
AES Wawarsing Solar, LLC	Delaware
AES West Kauai Energy Project, LLC	Delaware
AES West Oahu Solar, LLC	Delaware
AES Western Power Holdings, L.L.C.	Delaware
AES Western Power, L.L.C.	Delaware
AES Western Wind MV Acquisition, LLC	Delaware
AES Western Wind, L.L.C.	Delaware
AES Westwing II ES, LLC	Delaware
AES Wind Generation Limited	England & Wales
AES Wind Generation, LLC	Delaware
AES Wind Investments I B.V.	The Netherlands
AES Wind Investments II B.V.	The Netherlands
AES Wind Operations Bulgaria EOOD	Bulgaria
AES WR Limited Partnership	Delaware
AES Yucatan, S. de R.L. de C.V.	Mexico
AES Zephyr 2, LLC	Delaware
AES Zephyr 3, L.L.C.	Delaware
AES Zephyr, LLC	Delaware
AES-3C Maritza East 1 Ltd.	Cyprus
AES-3C Maritza East I EOOD	Bulgaria
AESCom Sul Ltda.	Brazil
AESEDDSOL SAS	France
AES-RS Spanish Holdings, LLC	Delaware
AES-RS Sunshine Cooperatief U.A.	Netherlands
AES-RS Sunshine Holdings, LLC	Delaware

AgCert Canada Holding, Limited	Ireland
AgCert Chile Servicios Ambientales Limitada	Chile
AgCert International, Limited	Ireland
AgCert Servicios Ambientales S.R.L.	Argentina
Agilion Energy Private Limited	India
Agua Clara, S.A.S.	Dominican Republic
AGV Solar IV Geradora de Energia S.A.	Brazil
AGV Solar V Geradora de Energia S.A.	Brazil
AGV Solar VI Geradora de Energia S.A.	Brazil
AGV Solar VII Geradora de Energia S.A.	Brazil
Ahern Pipestone Solar LLC	Delaware
Alectrona M EPE	Greece
Alectrona PV EPE	Greece
Allis Medina Solar, LLC	Delaware
Altai Power Limited Liability Partnership	Kazakhstan
Alto Maipo Delaware LLC	Delaware
Alto Maipo SpA	Chile
AM Solar B.V.	Netherlands
AM Solar BV Jordan PSC	Jordan
Amaterasu LLC	Massachusetts
Andes Solar II SpA	Chile
Andes Solar SpA	Chile
Antelope Big Sky Ranch LLC	Delaware
Antelope DSR 1, LLC	Delaware
Antelope DSR 2, LLC	Delaware
Antelope DSR 3, LLC	Delaware
Antelope Expansion 1B, LLC	Delaware
Antelope Expansion 2 Holdings, LLC	Delaware
Antelope Expansion 2 MM, LLC	Delaware
Antelope Expansion 2, LLC	Delaware
Antelope Expansion 3A, LLC	Delaware
Antelope Expansion 3B, LLC	Delaware
Antonito Solar Holding LLC	Delaware
Antonito Solar LLC	Delaware
Apple Valley Solar Farm LLC	Delaware
APR Walden Solar 1, LLC	Delaware
Arizona B&GC Solar, LLC	Colorado
ARNIKA Beteiligungsverwaltungs GmbH	Austria
ASI A S.r.l.	Italy
ASI B S.r.l.	Italy
ASI C S.r.l.	Italy
ASI Cellino San Marco FV, S.r.l.	Italy
ASI Cellino San Marco, S.r.l.	Italy

ASI Cerignola S.r.l.	Italy
ASI Cisterna di Latina FV S.r.l.	Italy
ASI Cisterna di Latina S.r.l.	Italy
ASI Cocomeri S.r.l.	Italy
ASI D S.r.l.	Italy
ASI Del Balzo S.r.l.	Italy
ASI E S.r.l.	Italy
ASI F S.r.l.	Italy
ASI Francavilla Apollo S.r.l.	Italy
ASI Francavilla S.r.l.	Italy
ASI G S.r.l.	Italy
ASI H S.r.l.	Italy
ASI I S.r.l.	Italy
ASI L S.r.l.	Italy
ASI Sicilia 1 S.R.L.	Italy
ASI Torchiarolo S.r.l.	Italy
ASI Trocia S.r.l.	Italy
ASI Ugento FV S.R.L.	Italy
ASI Vetrere 1 S.r.l.	Italy
Aspiration Solar G LLC	Delaware
Assonet Solar 1, LLC	Delaware
Atkinson County S1, LLC	Delaware
Atlantic Basin Services, Ltd.	Cayman Islands
Augusta Solar LLC	Delaware
AZ Solar I, LLC	Colorado
AZ Solar II, LLC	Colorado
AZ Solar Phase Zero, LLC	Colorado
BaiCheng Wind-Power Co., Ltd.	China
Bakersfield Industrial PV 1 LLC	California
Bakersfield PV I, LLC	California
Baldy Mesa Solar, LLC	Delaware
Barlow Solar LLC	Delaware
Barre Solar Holding, LLC	Delaware
Barre Solar I LLC	Delaware
Barre Solar II LLC	Delaware
Barre Solar III LLC	Delaware
Baseline Solar Holding LLC	Delaware
Battle Mountain Solar LLC	Delaware
Battleground Solar I, LLC	North Carolina
Bay Breeze Solar, LLC	Delaware
Bayshore Solar A, LLC	Delaware
Bayshore Solar B, LLC	Delaware
Bayshore Solar C, LLC	Delaware

Beacon Solar 1, LLC	Delaware
Beacon Solar 3, LLC	Delaware
Beacon Solar 4, LLC	Delaware
Beals Medina Solar, LLC	Delaware
Beulaville Solar, LLC	Delaware
Big River Wind Farm, LLC	Delaware
Big Sky North, LLC	Delaware
Big Spring Solar LLC	Delaware
Birch Coulee Solar LLC	Delaware
Biscoe Owner, LLC	North Carolina
Biscoe Solar, LLC	North Carolina
Black Creek Solar LLC	Delaware
Black Iron Solar, LLC	Delaware
Blackhorse Farm Solar, LLC	Rhode Island
Blanca Peak Solar CSG LLC	Delaware
Blue Sky Endeavors, LLC	Delaware
Blue Stone Solar Energy, LLC	Delaware
Blues City Solar LLC	Delaware
Bluff Bench Solar LLC	Delaware
Boa Hora 1 Geradora De Energia Solar S.A.	Brazil
Boa Hora 2 Geradora de Energia Solar S.A.	Brazil
Boa Hora 3 Geradora De Energia Solar S.A.	Brazil
Bolton Solar I, LLC	Delaware
Boreas Energy, LLC	Delaware
Bósforo de Responsabilidad Limitada de Capital Variable	El Salvador
Box Elder Solar, LLC	Delaware
Branch of AES Silk Road in Kazakhstan	Kazakhstan
Brasiliana Participações S.A.	Brazil
Brasventos Eolo Geradora de Energia S.A.	Brazil
Brasventos Miassaba 3 Geradora de Energia S.A.	Brazil
Bridgeport Solar, LLC	Colorado
Brooks Solar, LLC	Delaware
Brookside Solar, LLC	Delaware
Brookwood Drive Solar 1, LLC	Delaware
BSE PV Maui County II, LLC	Delaware
BSE PV Maui County, LLC	Delaware
Buffalo Gap Holdings 2, LLC	Delaware
Buffalo Gap Holdings 3, L.L.C.	Delaware
Buffalo Gap Holdings, LLC	Delaware
Buffalo Gap Wind Farm 2, LLC	Delaware
Buffalo Gap Wind Farm 3, L.L.C.	Delaware
Buffalo Gap Wind Farm 4, L.L.C.	Delaware
Buffalo Gap Wind Farm, LLC	Delaware

Bullock Freetown Solar 1, LLC	Delaware
BWC Lake Lashaway, LLC	Delaware
BWC Lake Ripple, LLC	Delaware
BWC Muddy Brook, LLC	Delaware
BWC Stony Brook, LLC	Delaware
Cabin Creek Solar LLC	Delaware
Calhoun County Solar LLC	Delaware
Calverton Solar LLC	Delaware
Camille, Ltd.	Cayman Islands
Cannonball Solar LLC	Delaware
Cat Canyon Solar LLC	Delaware
Caterpillar Hill Road Solar 1, LLC	Delaware
Cavalier Solar A, LLC	Delaware
Cavalier Solar A2, LLC	Delaware
Cavalier Solar B, LLC	Delaware
Cavanal Minerals, LLC	Delaware
CCP-PI Fund, LLC	Delaware
CCP-PI Lessee, LLC	Idaho
CCP-PI Lessor, LLC	Idaho
CCP-PI Managing Member, LLC	Delaware
CDEC-SING Ltda	Chile
CE BCS 1 Managing Member, LLC	Delaware
CE BCS Holdings 1, LLC	Delaware
CE FinCo 1 Pledgor, LLC	Delaware
CE FinCo 1, LLC	Delaware
CE GP 1 Managing Member, LLC	Delaware
CE GP Holdings 1, LLC	Delaware
CE TB 1 Managing Member, LLC	Delaware
CE TB Holdings 1, LLC	Delaware
CE WFS 3 Managing Member, LLC	Delaware
CE WFS Holdings 3, LLC	Delaware
Cedar Flats Solar LLC	Delaware
Cement City Solar, LLC	Delaware
Cemig II B.V.	The Netherlands
Centrais Eólicas Ametista S.A.	Brazil
Centrais Eólicas Borgo S.A.	Brazil
Centrais Eólicas Caetité S.A.	Brazil
Centrais Eólicas da Prata S.A.	Brazil
Centrais Eólicas dos Araças S.A.	Brazil
Centrais Eólicas Dourados S.A.	Brazil
Centrais Eólicas Espigão S.A.	Brazil
Centrais Eólicas Maron S.A.	Brazil
Centrais Eólicas Morrão S.A.	Brazil

Centrais Eólicas Pelourinho S.A.	Brazil
Centrais Eólicas Pilões S.A.	Brazil
Centrais Eólicas Seraima S.A.	Brazil
Centrais Eólicas Serra do Espinhaço S.A.	Brazil
Centrais Eólicas Tanque S.A.	Brazil
Centrais Eólicas Ventos do Nordeste S.A.	Brazil
Central Antelope Dry Ranch C LLC	Delaware
Central Electricity Supply Company of Orissa Limited	India
Central Eólica Santo Antônio de Pádua S.A.	Brazil
Central Eólica São Cristóvão S.A.	Brazil
Central Eólica São Jorge S.A.	Brazil
Central Line Solar, LLC	Delaware
Central Termoelectrica Guillermo Brown S.A.	Argentina
CES - Temple Solar LLC	Delaware
CES Colorado Solar Gardens LLC	Delaware
CES Community Solar Gardens, LLC	Delaware
CFE BESS Jobos, LLC	Puerto Rico
CFE BESS Salinas, LLC	Puerto Rico
Chagual Energía SpA	Chile
Charger Storage, LLC	Delaware
Chase Solar LLC	Delaware
Chevelon Butte RE II LLC	Delaware
Chevelon Butte RE III LLC	Delaware
Chevelon Butte RE IV LLC	Delaware
Chevelon Butte RE LLC	Arizona
Chevelon Butte RE V LLC	Delaware
Chile Renovables SpA	Chile
Citizen Solar B LLC	Delaware
Clarkson Solar Holding, LLC	Delaware
Clarkson Solar LLC	Delaware
Clean Flexible Energy II, LLC	Puerto Rico
Clean Flexible Energy III, LLC	Puerto Rico
Clean Flexible Energy, LLC	Puerto Rico
Clean Wind Energy Ltd.	Israel
Cleghorn Ridge Wind CA, LLC	Delaware
Clover Creek Solar, LLC	Delaware
Clover Creek Storage, LLC	Delaware
CO-CA Wholly Owned, LLC	Delaware
Cogentrix Valcour Intermediate Holdings, LLC	Delaware
Cogentrix Valcour Wind Energy Holdings II, LLC	Delaware
Colon LNG Marketing S. De R.L.	Panama
Community Energy Minnesota Solar Gardens LLC	Delaware
Community Energy Solar Development LLC	Delaware

Community Energy Solar, LLC	Delaware
Compania de Alumbrado Eletrico de San Salvador, S.A. DE C.V.	El Salvador
Compañía Transmisora Angamos SpA	Chile
Compañía Transmisora La Cebada S.A.	Chile
Compass Circle Solar, LLC	Rhode Island
Cordilheira dos Ventos Centrais Eólicas Ltda.	Brazil
Costa Norte LNG Terminal S. de R.L.	Panama
Crescent Solar LLC	Delaware
Cricket Mountain Solar LLC	Delaware
Cronin Road Solar 1, LLC	Delaware
Crooked River Solar LLC	Delaware
Croom Solar LLC	Delaware
Cross Lake Solar LLC	Delaware
CRPD Solar 1, LLC	Delaware
Cumberland Solar LLC	Delaware
Cuscatlan Solar, Ltda. de C.V.	El Salvador
Daggett Ridge Wind Farm, LLC	Delaware
Daviess County Solar LLC	Delaware
Delano PV1, LLC	California
Deming Solar LLC	Delaware
Derwood Solar LLC	Delaware
Desert Sage II Solar, LLC	Delaware
Desert Sage Solar, LLC	Delaware
Diamond Development, Inc.	Ohio
Distribuidora Electrica de Usulutan, Sociedad Anonima de Capital Variable	El Salvador
Domi Trading S.L.	Spain
Dominican Power Partners	Cayman Islands
Dominican Power Partners (DPP Branch)	Dominican Republic
Double Butte Storage, LLC	Delaware
Downsville Solar II LLC	Delaware
Downsville Solar LLC	Delaware
DPL Capital Trust II	Delaware
DPL Inc.	Ohio
Dublin Solar I, LLC	Indiana
Dunstable Solar 1, LLC	Delaware
Dusenberry Lane Solar 1, LLC	Delaware
Early Solar, LLC	Delaware
East Bloomfield Solar LLC	Delaware
East Brookfield Main Street Solar LLC	Delaware
East Line Solar, LLC	Delaware
Eaton Solar LLC	Delaware
Echo Storage, LLC	Delaware
Eden Solar, LLC	North Carolina

Elevation Solar C LLC	Delaware
Elizabethtown Solar Holding LLC	Delaware
Elizabethtown Solar LLC	Delaware
Eloy ESD Solar Holdings, LLC	Delaware
Embuaca Geração e Comercialização de Energia S.A.	Brazil
Empire Solar, LLC	Delaware
Empresa Electrica Angamos SpA	Chile
Empresa Electrica Cochrane SpA	Chile
Empresa Electrica de Oriente, S.A. de C.V.	El Salvador
Empresa Electrica Ventanas SpA	Chile
EnerAB Cogeneracion I Laguna del Rey, S. de R.L. de C.V.	Mexico
EnerAB Durango, S. de R.L. de C.V.	Mexico
EnerAB Suministro Calificado, S. de R.L. de C.V.	Mexico
EnerAB Tenedora, S. de R.L. de C.V.	Mexico
ENERAB, S. de R.L. de C.V.	Mexico
ENERGEN S.A.	Argentina
Energetica Argentina S.A.	Argentina
Energía Eólica Curauma SpA	Chile
Energía Eólica Don Alvaro SpA	Chile
Energia Eolica Los Olmos SpA	Chile
Energia Eolica Mesamavida SpA	Chile
Energía Eólica Pampas SpA	Chile
Energía Eólica Paposo SpA	Chile
Energía Eólica Rinconada SpA	Chile
Energía Eólica San Matías SpA	Chile
Energía Natural Dominicana Enadom, S.R.L.	Dominican Republic
Eólica Bela Vista Geração e Comercialização de Energia S.A.	Brazil
Eólica Icarai Geração e Comercialização de Energia S.A.	Brazil
Eólica Mar e Terra Geração e Comercialização de Energia S.A.	Brazil
Eólica Mesa La Paz, S. de R.L. de C.V.	Mexico
Estrella Solar, LLC	Delaware
Evangeline Solar LLC	Delaware
Felix 1, LLC	Delaware
Felix 2, LLC	Delaware
Felix 3, LLC	Delaware
Felix DevCo Holdings, LLC	Delaware
Felix DevCo, LLC	Delaware
Field of Dreams Solar Farm, LLC	Delaware
Finchville Solar, LLC	Delaware
Fitch Solar, LLC	Delaware
Flint Creek Solar LLC	Delaware
FLS 2013 Owner A MM, LLC	North Carolina
FLS 2013 Owner A, LLC	North Carolina

FLS 2013 Owner B MM, LLC	North Carolina
FLS 2013 Owner B, LLC	North Carolina
FLS 2013 Solar A, LLC	North Carolina
FLS 2013 Solar B, LLC	North Carolina
FLS 2014 Group A MM, LLC	North Carolina
FLS 2014 Group A, LLC	North Carolina
FLS 2014 Solar A MM, LLC	North Carolina
FLS 2014 Solar A, LLC	North Carolina
FLS Operations PV 2013, LLC	North Carolina
FLS Owner 170, LLC	North Carolina
FLS Owner 200, LLC	North Carolina
FLS Solar 100, LLC	North Carolina
FLS Solar 110, LLC	North Carolina
FLS Solar 170, LLC	North Carolina
FLS Solar 200, LLC	North Carolina
Fluence Energy, LLC	Delaware
Forebay Wind, LLC	California
Founder's Homestead Farm Solar, LLC	Rhode Island
Franklin Solar, LLC	Delaware
FTP-Maui PV Projects, LLC	Delaware
FTS Beacon Solar Holdings, LLC	Delaware
FTS Beacon Solar Managing Member, LLC	Delaware
FTS Eden Managing Member, LLC	Delaware
FTS MA Managing Member, LLC	Delaware
FTS MA Owner, LLC	Delaware
FTS Managing Member 1, LLC	Delaware
FTS Managing Member 2, LLC	Delaware
FTS Master Tenant 1, LLC	Delaware
FTS Master Tenant 2, LLC	Delaware
FTS Project Owner 1, LLC	Delaware
FTS Project Owner 2, LLC	Delaware
FTS Solar Holdings 4, LLC	Delaware
FTS Solar Managing Member 4, LLC	Delaware
Fundacion AES Dominicana, Inc.	Dominican Republic
Fundación AES en Panamá	Panama
Fundacion AES Gener	Chile
Gas Natural Atlantico II S. de R.L.	Panama
Gas Natural Atlantico S. De R.L.	Panama
Gasoducto GasAndes Argentina S.A.	Argentina
Gasoducto GasAndes S.A.	Chile
Geer Rd Solar 1 LLC	New York
Geer Rd Solar 2 LLC	New York
Geer Rd Solar 3 LLC	New York

Gener Argentina S.A.	Argentina
Geneva Solar LLC	Delaware
Geode Solar LLC	Delaware
Georgia Solar Holdings, LLC	Delaware
Georgia Solar Parent, LLC	Delaware
Gladwin Solar LLC	Delaware
Glen Canyon Solar A, LLC	Delaware
Glen Canyon Solar B, LLC	Delaware
Glen Canyon Solar C, LLC	Delaware
Glenmere Lake Solar, LLC	Delaware
Global Atreo S.L.	Spain
Global Energy Holdings B.V.	The Netherlands
Golden Compass Managing Member, LLC	Delaware
Golden Compass Seller, LLC	Delaware
Goller Enerji Uretim Ltd. Sti.	Turkey
Great Cove Holdings Pledgor, LLC	Delaware
Great Cove Seller Pledgor, LLC	Delaware
Great Cove Seller, LLC	Delaware
Great Cove Solar II, LLC	Delaware
Great Cove Solar III LLC	Delaware
Great Cove Solar, LLC	Delaware
Great Gully Solar Farm, LLC	Delaware
Green Beanworks B, LLC	Delaware
Green Beanworks C, LLC	Delaware
Green Beanworks D, LLC	Delaware
GreenAnt do Brasil Sistemas de Informação S.A.	Brazil
Greenwich Solar 1, LLC	Delaware
Group Energy Gas Panama, S.R.L.	Panama
GS Chevelon Butte I Holdings, LLC	Delaware
GS Chevelon Butte I Managing Member, LLC	Delaware
Guaimbê I Parque Solar S.A.	Brazil
Guaimbê II Parque Solar S.A.	Brazil
Guaimbê III Parque Solar S.A.	Brazil
Guaimbê IV Parque Solar S.A.	Brazil
Guaimbê Solar Holding S.A.	Brazil
Guaimbê V Parque Solar S.A.	Brazil
Guelphwood RD Solar 1, LLC	Delaware
Hainesport Solar LLC	Delaware
Halifax County Solar LLC	Delaware
Hardin Solar LLC	Delaware
Hardy Hills Solar Energy LLC	Delaware
Hart Solar, LLC	Delaware
Health and Welfare Benefit Plans LLC	Delaware

HECO Seller Pledgor, LLC	Delaware
HECO Seller, LLC	Delaware
Hemlock Ridge Solar LLC	Delaware
Henderson County Solar LLC	Delaware
High Valley Solar, LLC	Delaware
Highlander IA, LLC	Delaware
Highlander Seller Managing Member, LLC	Delaware
Highlander Seller, LLC	Delaware
Highlander Solar Energy Station 1, LLC	Delaware
Hipotecaria San Miguel Limitada de Capital Variable	San Salvador
Hipotecaria Santa Ana Limitada de Capital Variable	El Salvador
Hobart Solar LLC	Indiana
Hopi Solar Ranch, LLC	Delaware
Huron Solis Power LLC	Colorado
I.E. DR Projects I, S.R.L.	Dominican Republic
I.E. DR Projects II, S.R.L.	Dominican Republic
I.E. DR Projects III, S.R.L	Dominican Republic
ID Solar 1, LLC	Delaware
Indianapolis Power & Light Company	Indiana
Indimento Inversiones, S.L.	Spain
Industry Solar Power Generation Station 1 LLC	Delaware
Innovative Owner 14, LLC	North Carolina
Innovative Owner 15, LLC	North Carolina
Innovative Solar 14, LLC	North Carolina
Innovative Solar 15, LLC	North Carolina
InterAndes, S.A.	Argentina
Inversiones Cachagua SpA	Chile
Inversiones Cochrane SpA	Chile
Inversiones Energia Renovable Limitada	Chile
Inversiones LK SpA	Chile
Inversora de San Nicolas S.A.	Argentina
IPALCO Enterprises, Inc.	Indiana
Isabelle Creek Solar LLC	Delaware
JBSolar Malagon, S.L.	Spain
Jemeiwaa Ka’I S.A.S. E.S.P.	Colombia
Jobstown Solar LLC	Delaware
Johnstown Solar 1, LLC	Delaware
KA Energy OOD	Bulgaria
Kalahanai Solar LLC	Delaware
Kazincbarcikai Iparteruletfejleszt Kft.	Hungary
Kenansville Solar, LLC	Delaware
Keydet Solar Center, LLC	Delaware
Kings Rooftop PV, LLC	California

La Plata II, Ltd.	British Virgin Islands
La Plata III B.V.	The Netherlands
Lafayette Horizon Solar CSG LLC	Delaware
Lafayette Solar 1, LLC	Delaware
Lafayette Solar LLC	Delaware
Lake Village Solar LLC	Indiana
Lancaster Area Battery Storage, LLC	Delaware
Lancaster Energy Center, LLC	Delaware
Lancaster Little Rock C LLC	Delaware
Lancaster WAD B LLC	Delaware
Lane Ave Solar LLC	Delaware
Laramie River Solar LLC	Delaware
Latigo Wind Managing Member, LLC	Delaware
Latigo Wind Park, LLC	Delaware
Laurel Lake Solar LLC	Delaware
Laurel Mountain BESS, LLC	Delaware
Laurel Mountain FinCo Holdings, LLC	Delaware
Laurel Mountain FinCo, LLC	Delaware
Laurel Mountain Holdings, LLC	Delaware
Laurel Mountain Interconnection, LLC	Delaware
Laurel Mountain Managing Member, LLC	Delaware
Laurel Mountain Procurement, LLC	Delaware
Lemoore PV 1 LLC	California
Letts Creek Solar, LLC	Delaware
Lewiston Solar 1, LLC	Delaware
Linkville Solar, LLC	Delaware
Locust Ridge Solar LLC	Delaware
Lowndes Solar 2 LLC	Delaware
Lowndes Solar LLC	Delaware
Luna HoldCo, LLC	Delaware
Luna Storage, LLC	Delaware
MacGregor Park, Inc.	Ohio
Magnolia Wind Farm, LLC	Delaware
Maguan Daliangzi Power Station Co., Ltd.	China
Maguan Laqi Power Station Co., Ltd.	China
Mannys Corners Solar 1, LLC	Delaware
Manteca PV 1 LLC	California
Maple Solar, LLC	New York
Marahu Solar, LLC	Puerto Rico
Mass Community Solar LLC	Delaware
Maui 17-2 LLC	Hawaii
Mauka FIT Twenty LLC	Hawaii
Mayson Solar LLC	Delaware

Mazon Solar II LLC	Delaware
McCracken County Solar LLC	Delaware
MCE Solar One, LLC	Delaware
McFarland Solar A, LLC	Delaware
McFarland Solar B, LLC	Delaware
McFarland Solar D, LLC	Delaware
McFarland Storage C, LLC	Delaware
Meade County Solar LLC	Delaware
Mercury Chile Co. II Ltd.	Cayman Islands
Mercury Chile Holdco LLC	Delaware
MFP CO I, LLC	Delaware
MFP CO II, LLC	Colorado
MFP CO III, LLC	Delaware
Miami Valley Insurance Company	Vermont
Miami Valley Lighting, LLC	Ohio
Mid-America Capital Resources, Inc.	Indiana
Middletown Solar 1, LLC	Delaware
Mill Creek Solar LLC	Delaware
Missile Site Solar LLC	Delaware
Mitchell County Solar, LLC	Delaware
MM Solar Parent, LLC	Delaware
Monarch Solar PV LLC	Delaware
Mong Duong Finance Holdings B.V.	Netherlands
Morgan Valley Wind Farm, LLC	Delaware
Morris Solar, LLC	Delaware
Motor EV, LLC	Delaware
Mount Olive Solar Holding LLC	Delaware
Mount Olive Solar LLC	Delaware
Mountain Minerals, LLC	Delaware
Mountain View Power Partners IV, LLC	Delaware
Mountain View Power Partners, LLC	Delaware
MS Participações Societárias S.A.	Brazil
MSP Master Tenant I, LLC	Colorado
MSP Master Tenant II, LLC	Colorado
Mt. Zion Solar, LLC	Delaware
Murphy Lake Solar, LLC	Texas
Na Pua Makani Power Partners, LLC	Delaware
Navajo Solar Power Generation Station 1 LLC	Delaware
Naylor Solar LLC	Delaware
NC 2014 Fund A MM, LLC	North Carolina
NC 2014 Fund A, LLC	North Carolina
New Bremen Solar, LLC	Delaware
New Sustainable Property Holdings II, LLC	Delaware

New Sustainable Property Holdings, LLC	Delaware
Next Brasil Investimentos Ltda.	Brazil
Nick Owner, LLC	North Carolina
Nick Solar, LLC	North Carolina
Ningde Dagang Hydropower Development Co., Ltd.	China
Norgener Foreign Investment SpA	Chile
Norgener Inversiones SpA	Chile
North Bay Solar 1, LLC	Delaware
North Branch Solar LLC	Delaware
North Lancaster Ranch LLC	Delaware
Northline Solar, LLC	Delaware
Nova Energia Holding S.A.	Brazil
Novus Barre Town Solar, LLC	Delaware
Nucla Solar LLC	Delaware
Nurenergoservice LLP	Kazakhstan
NY RNM Project1, LLC	Delaware
NY RNM Project1A, LLC	Delaware
NY RNM Project2, LLC	Delaware
NY RNM Project3, LLC	Delaware
NY RNM Project4, LLC	Delaware
Oahu SPE 101-14 LLC	Hawaii
Oahu SPE 101-19, LLC	Hawaii
Oahu SPE 101-2, LLC	Hawaii
Oahu SPE 101-33 LLC	Hawaii
Oahu SPE 101-4, LLC	Hawaii
Oahu SPE 101-9, LLC	Hawaii
Oak Ridge Solar, LLC	Delaware
Old Gold Wind Farm, LLC	Delaware
Omega SpA	Chile
Otoe Solar Power Generation Station 1 LLC	Delaware
Painted Desert Power, LLC	Delaware
Parque Eólico Campo Lindo SpA	Chile
Parque Eólico Los Cururos SpA	Chile
PARQUE EOLICO NOLANA SpA	Chile
Parque Solar Durango, S. de R.L. de C.V.	Mexico
Particle Wave LLC	Massachusetts
Pawnee Solar 2 LLC	Delaware
Pawnee Solar LLC	Delaware
Perennial Solar LLC	Delaware
Pershing Solar, LLC	Delaware
Persistence Solar LLC	Delaware
Pine Bluff Solar I LLC	Delaware
Pine Bluff Solar II LLC	Delaware

Pine Grove Solar, LLC	Delaware
Pioneer Wind Managing Member, LLC	Delaware
Pioneer Wind Park I, LLC	Delaware
Pioneer Wind Park II, LLC	Delaware
Platteview Solar LLC	Delaware
Pleinmont Solar 1, LLC	Delaware
Pleinmont Solar 2, LLC	Delaware
Plus Energy Services, LLC	Delaware
Plymouth Solar 1, LLC	Delaware
Polecat Creek Solar I LLC	Delaware
Polecat Creek Solar II LLC	Delaware
Pony Express Solar, LLC	Delaware
Portville Solar 1, LLC	Delaware
Potengi Holdings S.A.	Brazil
Powhatan Solar Power Generation Station 1 LLC	Delaware
Prevailing Wind Park Holdings, LLC	Delaware
Prevailing Wind Park MM, LLC	Delaware
Prevailing Wind Park, LLC	South Dakota
Providence Solar LLC	Delaware
Pullman Solar, LLC	Delaware
Punta del Sol SpA	Chile
Raceway Solar 1, LLC	Delaware
Raceway Solar 2, LLC	Delaware
Rancho Viejo Community Solar LLC	Delaware
Rancho Viejo Solar LLC	Delaware
Randolph Solar 1, LLC	Delaware
Rangeland Solar, LLC	Delaware
Ransomville Solar 1, LLC	Delaware
Rawhide Solar LLC	Delaware
Red Lion Solar LLC	Delaware
Red Rocks Solar LLC	Delaware
Reddy Branch Solar LLC	Delaware
Redman Solar 2, LLC	Delaware
Redman Solar, LLC	Delaware
Rei dos Ventos 3 Geradora de Energia S.A.	Brazil
Rep Office of AES Silk Road in Almaty	Kazakhstan
Rep Office of AES Silk Road in Tajikstan Republic	Tajikistan
Richmond Green Hydrogen One, LLC	Delaware
Richmond Solar Power 1, LLC	Rhode Island
Richmond Spider Solar, LLC	Delaware
Rincon Solar I, LLC	Georgia
Rineyville Solar LLC	Delaware
Rising Solar, LLC	Delaware

River Street Solar 1, LLC	Delaware
Riverhead Solar 2, LLC	New York
Riverhead Solar Farm, LLC	Delaware
Riverside Canal Power Company	California
Riverside Solar, LLC	Delaware
Riviera Solar, LLC	Delaware
RMS325 LLC	Delaware
RMS335 LLC	Delaware
Robeson Solar I, LLC	Delaware
Rocky Bluff Solar LLC	Delaware
Rocky Mountain Solar PV LLC	Delaware
Rodemacher Solar LLC	Delaware
Rosamond Solar, LLC	Colorado
RT52 Walden Solar 1, LLC	Delaware
Rutland Community Solar Holding LLC	Delaware
Rutland Solar LLC	Delaware
Ryan Road Solar LLC	Delaware
Sage Solar LLC	Delaware
San Bernardino Solar, LLC	Delaware
San Luis Solar Garden LLC	Delaware
San Luis Solar Holding LLC	Delaware
San Pablo Raceway, LLC	Delaware
Sand Lake Solar PV LLC	Delaware
Sandstone Solar LLC	Delaware
Sangamon Solar LLC	Delaware
Santa Clara Solar LLC	Delaware
Santos Energia Participações S.A.	Brazil
Scituate Solar I, LLC	Delaware
Scottsdale Solar Holdings, LLC	Delaware
SD Solar I, LLC	Colorado
SeaWest Asset Management Services, LLC	California
SeaWest Properties, LLC	California
Seguro Storage, LLC	Delaware
Selma Owner, LLC	North Carolina
Selma Solar, LLC	North Carolina
Seneca Wind 2 LLC	Delaware
Seneca Wind LLC	Delaware
SEPV Imperial, LLC	Delaware
SEPV Mojave West, LLC	Delaware
SEPV Palmdale East, LLC	Delaware
Serra Verde I Energética S.A.	Brazil
Serra Verde II Energética S.A.	Brazil
Serra Verde III Energética S.A.	Brazil

Serra Verde IV Energética S.A.	Brazil
Serra Verde V Energética S.A.	Brazil
Serra Verde VI Energética S.A.	Brazil
Serra Verde VII Energética S.A.	Brazil
Settler Wind, LLC	Delaware
SFDK FinCo Holdings, LLC	Delaware
SFDK FinCo, LLC	Delaware
SFDK Solar Holding, LLC	Delaware
SFDK Solar Managing Member, LLC	Delaware
SFDK Solar, LLC	Delaware
SFMM Solar, LLC	Delaware
Shazia S.R.L.	Argentina
Sierra Solar Greenworks LLC	Delaware
Sierras del Buendia S.A.	Argentina
Silver Lake Solar, LLC	Delaware
Silver Peak Energy, LLC	Delaware
Skipjack IA, LLC	Delaware
Skipjack Seller Managing Member, LLC	Delaware
Skipjack Seller, LLC	Delaware
Skipjack Solar Center, LLC	Delaware
Soda Flats Solar LLC	Delaware
Soemina Energeia S.r.l.	Italy
Solaire Castifao SAS	France
Solaire Linguizetta 1 SAS	France
Solaire Linguizetta 2 SAS	France
Solaire Saint Thibery SAS	France
Solaire Simiane 1 SAS	France
Solaire Simiane 2 SAS	France
Solaire Vaureilles SAS	France
Solar Access America, LLC	Delaware
Solar Access CA, LLC	Delaware
Solar Access California, LLC	Colorado
Solar Refeel Cocomeri S.r.l.	Italy
Solverde 1, LLC	Delaware
Somers Road Solar 1, LLC	Delaware
Somerset Solar, LLC	Delaware
Son My LNG Terminal Holding B.V	The Netherlands
Son My LNG Terminal Limited Liability Company	Vietnam
Sooner Solar LLC	Delaware
South Barre Solar 1, LLC	Delaware
South Butler Solar LLC	Delaware
South Deming Solar LLC	Delaware
South Goshen Solar LLC	Delaware

South Wayne Solar LLC	Delaware
Southern Hills Wind LLC	Delaware
Southern Valley Solar LLC	Delaware
SP Antelope DSR LLC	Delaware
Spirit Mound Solar LLC	Delaware
SPN Solar Holdings 1, LLC	Delaware
SPN Solar Holdings 2, LLC	Delaware
SPN Solar Holdings 3, LLC	Delaware
SPN Solar Holdings 4, LLC	Delaware
SPN Solar Holdings 5, LLC	Delaware
SPN Solar Managing Member 1, LLC	Delaware
SPN Solar Managing Member 2, LLC	Delaware
SPN Solar Managing Member 3, LLC	Delaware
SPN Solar Managing Member 4, LLC	Delaware
SPN Solar Managing Member 5, LLC	Delaware
Spotsylvania Solar Energy Center, LLC	Delaware
sPower Antex 1B FinCo, LLC	Delaware
sPower Beacon Solar FinCo, LLC	Delaware
sPower Cardinal HoldCo, LLC	Delaware
sPower DevCo NC, LLC	Delaware
sPower DevCo Warehouse Borrower, LLC	Delaware
sPower DevCo Warehouse Pledgor, LLC	Delaware
sPower Development Company, LLC	Delaware
sPower Energy Marketing, LLC	Delaware
sPower Finance 1 HoldCo, LLC	Delaware
sPower Finance 1, LLC	Delaware
sPower Finance 2 HoldCo, LLC	Delaware
sPower Finance 2, LLC	Delaware
sPower Finance 3 HoldCo, LLC	Delaware
sPower Finance 3, LLC	Delaware
sPower FinCo 1 LLC	Delaware
sPower FinCo 2 LLC	Delaware
sPower FinCo 3 LLC	Delaware
sPower FinCo 4 LLC	Delaware
sPower FinCo 5 LLC	Delaware
sPower FinCo 6 LLC	Delaware
sPower FinCo 7 LLC	Delaware
sPower FinCo 8 LLC	Delaware
sPower FinCo 9 LLC	Delaware
sPower FinCo Holdings 9, LLC	Delaware
sPower Highlander FinCo, LLC	Delaware
sPower Highlander Holdings, LLC	Delaware
sPower MSL Pledge, LLC	Delaware

sPower MSL, LLC	Delaware
sPower NorthPeak FinCo, LLC	Delaware
sPower NorthPeak Holdings, LLC	Delaware
sPower OpCo A Blocker, LLC	Delaware
sPower OpCo A, LLC	Delaware
sPower OpCo B, LLC	Delaware
sPower OpCo C, LLC	Delaware
sPower OpCo Warehouse Borrower, LLC	Delaware
sPower OpCo Warehouse Pledgor, LLC	Delaware
sPower Prevailing FinCo, LLC	Delaware
sPower Procurement, LLC	Delaware
sPower Project Holdings, LLC	Delaware
sPower Services, LLC	Delaware
sPower SFDK FinCo, LLC	Delaware
sPower SFDK Solar Holdings, LLC	Delaware
sPower Skipjack FinCo, LLC	Delaware
sPower Skipjack Holdings, LLC	Delaware
sPower SLB HoldCo, LLC	Delaware
sPower Solar Holdings 6, LLC	Delaware
sPower Solar Holdings 7, LLC	Delaware
sPower Solar Holdings 8, LLC	Delaware
sPower Texas DevCo, LLC	Delaware
sPower Warehouse Tax Equity SellCo, LLC	Delaware
sPower Wind Holdings 1, LLC	Delaware
sPower Wind Holdings 2, LLC	Delaware
sPower Winterfell Holdings, LLC	Delaware
sPower, LLC	Delaware
Spring Hill Rd Solar 1, LLC	Delaware
SPW Solar Holdings 1, LLC	Delaware
SPW Solar Holdings 2, LLC	Delaware
SPW Solar Holdings 3, LLC	Delaware
SPW Solar Holdings 4, LLC	Delaware
SPW Solar Managing Member 1, LLC	Delaware
SPW Solar Managing Member 2, LLC	Delaware
SPW Solar Managing Member 3, LLC	Delaware
SPW Solar Managing Member 4, LLC	Delaware
St. Martin Solar LLC	Delaware
Standalone Battery Seller, LLC	Delaware
Stony Lake Solar, LLC	Delaware
Store Heat and Produce Energy, Inc.	Indiana
Stow Solar I, LLC	Delaware
Sudbury Ervin GMC Solar, LLC	Delaware
Sugar Maple Solar, LLC	Delaware

Summer Solar LLC	Delaware
Sundog Solar LLC	Delaware
SunE Solar XVII Project5, LLC	Delaware
SunE SunHoldings4, LLC	Delaware
Sustainable Power Group Pledgor, LLC	Delaware
Sustainable Power Group, LLC	Delaware
Sustainable Property Holdings, LLC	Delaware
Tau Power BV	The Netherlands
TEG Business Trust	Mexico
Tendril Holdings, LLC	Delaware
Tendril Intermediate Holdings, LLC	Delaware
Tendril Midco, LLC	Delaware
TEP Business Trust	Mexico
TermoAndes S.A.	Argentina
Termoelectrica del Golfo, S. de R.L. de C.V.	Mexico
Termoelectrica Penoles, S. de R.L. de C.V.	Mexico
The AES Corporation	Delaware
The Dayton Power and Light Company	Ohio
Thorn Lake Solar, LLC	Delaware
Tioga HoldCo I, LLC	Delaware
Tioga HoldCo II, LLC	Delaware
Tioga Solar Blairstown, LLC	Delaware
Tioga Solar Dinuba LLC	Delaware
Tioga Solar Gila, LLC	Delaware
Tioga Solar Gridley, LLC	Delaware
Tioga Solar Hemet DLL1, LLC	Delaware
Tioga Solar Hemet WF1, LLC	Delaware
Tioga Solar I, LLC	Delaware
Tioga Solar II, LLC	Delaware
Tioga Solar IV, LLC	Delaware
Tioga Solar Kona, LLC	Delaware
Tioga Solar Melville, LLC	Delaware
Tioga Solar Middlesex, LLC	Delaware
Tioga Solar Mililani, LLC	Delaware
Tioga Solar Phoenix I, LLC	Delaware
Tioga Solar West Hartford, LLC	Delaware
Tioga Solar Westborough, LLC	Delaware
Townline Batavia Solar 1, LLC	Delaware
Townsend Solar LLC	Delaware
Tozer Road Solar, LLC	Massachusetts
Trailside Solar Holding LLC	Delaware
Trailside Solar LLC	Delaware
Transmisora Tal Tal SpA	Chile

Travertine Solar LLC	Delaware
Treasure Lane Solar 1, LLC	Delaware
Triple S Solar I LLC	Delaware
Triple S Solar II LLC	Delaware
Tucano F1 Geração de Energias S.A.	Brazil
Tucano F2 Geração de Energias S.A.	Brazil
Tucano F3 Geração de Energias S.A.	Brazil
Tucano F4 Geração de Energias S.A.	Brazil
Tucano F5 Geração de Energias S.A.	Brazil
Tucano F6 Geração de Energias SPE S.A.	Brazil
Tucano F7 Geração de Energias SPE S.A.	Brazil
Tucano F8 Geração de Energias SPE S.A.	Brazil
Tucano Holdings III S.A.	Brazil
Tulip Solar LLC	Delaware
Tuliptree Wind Farm, LLC	Delaware
Tunica Windpower LLC	Delaware
Turkey Branch Owner, LLC	North Carolina
Turkey Branch Solar, LLC	North Carolina
University Solar, LLC	Delaware
UofU Solar 1, LLC	Delaware
UofU Solar II, LLC	Delaware
Uplight Inc.	Delaware
Upper Freehold Solar LLC	Delaware
Valcour Altona Windpark, LLC	Delaware
Valcour Bliss Windpark, LLC	Delaware
Valcour Chateaugay Windpark, LLC	Delaware
Valcour Clinton Windpark, LLC	Delaware
Valcour Ellenburg Windpark, LLC	Delaware
Valcour Intermediate Holdings Pledgor, LLC	Delaware
Valcour Power 2006 Holdco, LLC	Delaware
Valcour Power 2008 Holdco, LLC	Delaware
Valcour Repower DevCo, LLC	Delaware
Valcour Wethersfield Windpark, LLC	Delaware
Valcour Wind Energy, LLC	Delaware
Valparaiso Solar LLC	Indiana
Veleiros Holdings S.A.	Brazil
Ventos de Santa Tereza 01 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 02 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 03 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 04 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 05 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 06 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 07 Energias Renováveis S.A.	Brazil

Ventos de Santa Tereza 08 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 09 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 10 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 11 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 12 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 13 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza 14 Energias Renováveis S.A.	Brazil
Ventos de Santa Tereza Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 01 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 02 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 03 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 04 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 05 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 06 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 07 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 08 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 09 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 10 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 11 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 12 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo 13 Energias Renováveis S.A.	Brazil
Ventos de São Ricardo Energias Renováveis S.A.	Brazil
Ventus Holding de Energia Eólica Ltda.	Brazil
Vermilion Solar I LLC	Delaware
Vermilion Solar II LLC	Delaware
Victor Dry Farm Ranch A LLC	Delaware
Victor Dry Farm Ranch B LLC	Delaware
Victor Mesa Linda B2 LLC	Delaware
Victor Mesa Linda C2 LLC	Delaware
Victor Mesa Linda D2 LLC	Delaware
Victor Mesa Linda E2 LLC	Delaware
Vientos Neuquinos I S.A.	Argentina
Village of Waterbury Solar I, LLC	Delaware
W. Orange RD Solar, LLC	Delaware
Waiawa Phase 2 Solar, LLC	Delaware
Wallace Solar, LLC	Delaware
Warsaw Solar 2, LLC	Delaware
Warsaw Solar, LLC	Delaware
Waterford Solar 1, LLC	Delaware
Waterloo Solar, LLC	Indiana
Weixi Longdu Power Station Co., Ltd.	China
Wenshan Malutang Electricity Power Co., Ltd.	China
West Atlantic Solar I LLC	Delaware

West Atlantic Solar II LLC	Delaware
West Brookfield Boston Post Road Solar LLC	Delaware
West Camp Wind Farm, LLC	Delaware
West Line Solar, LLC	Delaware
West Street Solar 1, LLC	Delaware
Western Antelope Blue Sky Ranch A LLC	Delaware
Western Antelope Blue Sky Ranch B LLC	Delaware
Western Antelope Dry Ranch LLC	Delaware
Western Solar Parent, LLC	Delaware
Westminster CC Solar 1, LLC	Delaware
Westport Stone & Sand Solar, LLC	Massachusetts
Westtown Solar LLC	Delaware
WFS Highlander Holdings, LLC	Delaware
WFS Highlander Managing Member, LLC	Delaware
WFS Mountain View Holdings, LLC	Delaware
WFS Mountain View Managing Member, LLC	Delaware
WFS Solar Holdings 1, LLC	Delaware
WFS Solar Holdings 2, LLC	Delaware
WFS Solar Managing Member 1, LLC	Delaware
WFS Solar Managing Member 2, LLC	Delaware
White Creek Solar LLC	Delaware
Wibaux Wind, LLC	Delaware
Wilbur Woods Solar, LLC	Delaware
WildRoseWind Holdings, LLC	Delaware
WildRoseWind LLC	Texas
Williamsburg East Street Solar LLC	Delaware
Winchendon Ash Street Solar 1 LLC	Delaware
Winchendon Lincoln Avenue Solar 1, LLC	Delaware
Winchendon Lincoln Avenue Solar 2, LLC	Delaware
Windsor PV1, LLC	Virginia
WuLanChaBu Jianghe Electricity Power Co., Ltd.	China
Yakima Solar LLC	Delaware
Yampa Valley Solar LLC	Delaware
York Chester Solar, LLC	Delaware
Your Energy Holdings Limited	England & Wales
Yunnan Diqing Shangri-la Huarui Electricity Co., Ltd.	China
Yunnan Longling Lazhai Hydropower Development Co., Ltd.	China
ZPD-PT Solar Project 2017-001 LLC	Massachusetts
ZPD-PT Solar Project 2017-003 LLC	Massachusetts
ZPD-PT Solar Project 2017-006 LLC	Massachusetts
ZPD-PT Solar Project 2017-007 LLC	Massachusetts
ZPD-PT Solar Project 2017-008 LLC	Massachusetts
ZPD-PT Solar Project 2017-011 LLC	Massachusetts

ZPD-PT Solar Project 2017-014 LLC	Massachusetts
ZPD-PT Solar Project 2017-017 LLC	Massachusetts
ZPD-PT Solar Project 2017-021 LLC	Massachusetts
ZPD-PT Solar Project 2017-023 LLC	Massachusetts
ZPD-PT Solar Project 2017-024 LLC	Massachusetts
ZPD-PT Solar Project 2017-038 LLC	Massachusetts
ZPD-PT Solar Project 2017-044 LLC	Massachusetts

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Andrés Gluski, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The AES Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 3, 2022

/s/ ANDRÉS GLUSKI

Name: Andrés Gluski

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Stephen Coughlin, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The AES Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 3, 2022

/s/ STEPHEN COUGHLIN

Name: Stephen Coughlin

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, Andrés Gluski, President and Chief Executive Officer of The AES Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation.

Date: November 3, 2022

/S/ ANDRÉS GLUSKI

Name: Andrés Gluski

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, Stephen Coughlin, Executive Vice President and Chief Financial Officer of The AES Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation.

Date: November 3, 2022

/s/ STEPHEN COUGHLIN

Name: Stephen Coughlin

Executive Vice President and Chief Financial Officer

XML

Document And Entity Information - $ / shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022	Dec. 31, 2021
Document Information [Line Items]
City Area Code	(703)
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	4300 Wilson Boulevard
Entity Tax Identification Number	54-1163725
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Entity File Number	1-12291
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	THE AES CORPORATION
Entity Central Index Key	0000874761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		667,949,778
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01
Entity Address, Postal Zip Code	22203
Entity Address, City or Town	Arlington,
Entity Address, State or Province	VA
Local Phone Number	522-1315
Document Transition Report	false
Document Quarterly Report	true
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	AES
Entity Listing, Description	NYSE
Title of 12(b) Security	Common Stock, par value $0.01 per share
corporate units
Document Information [Line Items]
Trading Symbol	AESC
Entity Listing, Description	NYSE
Title of 12(b) Security	Corporate Units

XML

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 1,553,000,000	$ 943,000,000
Restricted cash	314,000,000	304,000,000
Short-term investments	671,000,000	232,000,000
Accounts receivable, net of allowance for doubtful accounts of $5 and $5, respectively	1,787,000,000	1,418,000,000
Inventory	998,000,000	604,000,000
Prepaid expenses	149,000,000	142,000,000
Other current assets	1,303,000,000	897,000,000
Current held-for-sale assets	853,000,000	816,000,000
Total current assets	7,628,000,000	5,356,000,000
Property, Plant and Equipment:
Land	465,000,000	426,000,000
Electric generation, distribution assets and other	26,003,000,000	25,552,000,000
Accumulated depreciation	(8,532,000,000)	(8,486,000,000)
Construction in progress	3,661,000,000	2,414,000,000
Property, plant and equipment, net	21,597,000,000	19,906,000,000
Other Assets:
Investments in and advances to affiliates	1,121,000,000	1,080,000,000
Debt service reserves and other deposits	167,000,000	237,000,000
Goodwill	1,179,000,000	1,177,000,000
Other intangible assets, net of accumulated amortization of $415 and $385, respectively	1,626,000,000	1,450,000,000
Deferred income taxes	380,000,000	409,000,000
Other noncurrent assets, net of allowance of $57 and $23, respectively	2,964,000,000	2,188,000,000
Noncurrent assets of held-for-sale businesses	1,113,000,000	1,160,000,000
Total other assets	8,550,000,000	7,701,000,000
TOTAL ASSETS	37,775,000,000	32,963,000,000
CURRENT LIABILITIES
Accounts payable	1,688,000,000	1,153,000,000
Accrued interest	210,000,000	182,000,000
Accrued non-income taxes	244,000,000	266,000,000
Accrued and other liabilities	1,212,000,000	1,205,000,000
Non-recourse debt, including $321 and $302, respectively, related to variable interest entities	2,007,000,000	1,367,000,000
Current held-for-sale liabilities	541,000,000	559,000,000
Total current liabilities	5,902,000,000	4,732,000,000
NONCURRENT LIABILITIES
Recourse debt	4,668,000,000	3,729,000,000
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities	15,530,000,000	13,603,000,000
Deferred income taxes	1,169,000,000	977,000,000
Other noncurrent liabilities	3,167,000,000	3,358,000,000
Noncurrent held-for-sale liabilities	677,000,000	740,000,000
Total noncurrent liabilities	25,211,000,000	22,407,000,000
Redeemable Noncontrolling Interest, Equity, Carrying Amount	1,201,000,000	1,257,000,000
THE AES CORPORATION STOCKHOLDERS’ EQUITY
Preferred Stock, Value, Issued	838,000,000	838,000,000
Common Stock, Value, Issued	8,000,000	8,000,000
Additional paid-in capital	6,818,000,000	7,106,000,000
Accumulated deficit	(732,000,000)	(1,089,000,000)
Accumulated other comprehensive loss	(1,691,000,000)	(2,220,000,000)
Treasury Stock, Value	(1,832,000,000)	(1,845,000,000)
Total AES Corporation stockholders’ equity	3,409,000,000	2,798,000,000
NONCONTROLLING INTERESTS	2,052,000,000	1,769,000,000
Total equity	5,461,000,000	4,567,000,000
TOTAL LIABILITIES AND EQUITY	$ 37,775,000,000	$ 32,963,000,000

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 5	$ 5
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Issued	1,043,050	1,043,050
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Accounts receivable, net of allowance for doubtful accounts of $5 and $5, respectively	$ 5	$ 5
Other intangible assets, net of accumulated amortization of $415 and $385, respectively	415	385
Other Noncurrent Assets, Allowance	$ 57	$ 23
Preferred Stock, Shares Outstanding	1,043,050	1,043,050
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	818,790,001	818,717,043
Common stock, shares outstanding (in shares)	667,949,778	666,793,625
Treasury stock, shares (in shares)	150,840,223	151,923,418
Variable Interest Entity [Line Items]
Non-recourse debt, including $321 and $302, respectively, related to variable interest entities	$ 2,007	$ 1,367
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities	15,530	13,603
Consolidated Variable Interest Entities [Member]
Variable Interest Entity [Line Items]
Non-recourse debt, including $321 and $302, respectively, related to variable interest entities	321	302
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities	$ 2,167	$ 2,223

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total Revenue	$ 3,627	$ 3,036	$ 9,557	$ 8,371
Cost of Goods and Services Sold	(2,735)	(2,276)	(7,572)	(6,219)
Operating margin	892	760	1,985	2,152
General and administrative expenses	(51)	(39)	(149)	(130)
Interest expense	(276)	(242)	(813)	(669)
Interest income	100	71	270	212
Loss on extinguishment of debt	(1)	(22)	(8)	(41)
Other expense	(10)	(12)	(51)	(32)
Other income	4	48	80	274
Gain on disposal and sale of business interests	1	22	0	81
Asset impairment expense	(50)	(29)	(533)	(1,374)
Foreign currency transaction gains (losses)	8	29	(60)	(8)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	617	586	721	465
Income tax expense	(145)	(126)	(186)	(75)
Net equity in earnings (losses) of affiliates	(26)	25	(54)	(15)
INCOME FROM CONTINUING OPERATIONS	446	485	481	375
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	0	0	0	4
NET INCOME	446	485	481	379
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(25)	(142)	(124)	(156)
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$ 421	$ 343	$ 357	$ 223
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	$ 0.63	$ 0.52	$ 0.53	$ 0.32
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax	$ 0	$ 0	$ 0	$ 0.01
Income from continuing operations, net of tax	$ 421	$ 343	$ 357	$ 219
Income from discontinued operations, net of tax	$ 0	$ 0	$ 0	$ 4
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	$ 0.59	$ 0.48	$ 0.50	$ 0.31
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax	0	0	0	0.01
Earnings Per Share, Basic	0.63	0.52	0.53	0.33
Earnings Per Share, Diluted	$ 0.59	$ 0.48	$ 0.50	$ 0.32
DILUTED SHARES OUTSTANDING	711	711	711	701
BASIC EARNINGS PER SHARE:
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$ 0.63	$ 0.52	$ 0.53	$ 0.33
DILUTED EARNINGS PER SHARE:
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$ 0.59	$ 0.48	$ 0.50	$ 0.32
DILUTED SHARES OUTSTANDING	711	711	711	701
Electric Transmission [Member]
Total Revenue	$ 976	$ 768	$ 2,613	$ 2,147
Cost of Goods and Services Sold	(896)	(644)	(2,335)	(1,806)
Electricity, Generation [Member]
Total Revenue	2,651	2,268	6,944	6,224
Cost of Goods and Services Sold	$ (1,839)	$ (1,632)	$ (5,237)	$ (4,413)

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 446	$ 485	$ 481	$ 379
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	(80)	(58)	(97)	(89)
Reclassification to earnings, net of $0 income tax for all periods	0	0	0	3
Total foreign currency translation adjustment, net of income tax	(80)	(58)	(97)	(86)
Derivative activity:
Change in derivative fair value, net of income tax benefit (expense) of $(62), $2, $(196), and $(17), respectively	189	(6)	731	62
Reclassification to earnings, net of income tax benefit (expense) of $1, $(10), $(12), and $(23), respectively	14	30	52	79
Total change in fair value of derivatives	203	24	783	141
Pension activity:
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	0	1	0	1
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	1	4	2	5
Total pension adjustments	(1)	(3)	(2)	(4)
OTHER COMPREHENSIVE INCOME (LOSS)	124	(31)	688	59
COMPREHENSIVE INCOME	570	454	1,169	438
Less: Comprehensive income attributable to noncontrolling interests and redeemable stock of subsidiaries	(50)	(125)	(207)	(172)
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE AES CORPORATION	$ 520	$ 329	$ 962	$ 266

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
OCI, Foreign Currency Transaction and Translation Gain (Loss), Arising During Period, Tax	$ 0	$ 0	$ 0	$ 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax	0	0	0	0
Change in derivative fair value, net of income tax benefit (expense) of $(62), $2, $(196), and $(17), respectively	(62)	2	(196)	(17)
Reclassification to earnings, net of income tax benefit (expense) of $1, $(10), $(12), and $(23), respectively	1	(10)	(12)	(23)
Change in pension adjustments due to net actuarial gain (loss) for the period, income tax (expense) benefit	0	(1)	0	(1)
Pension, Reclassifications to Earnings, Net of Income Tax (expense) benefit	$ (1)	$ 1	$ (1)	$ 0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net income	$ 481	$ 379
Adjustments to net income:
Depreciation and amortization	800	795
Gain on disposal and sale of business interests	0	(81)
Impairment expense	533	1,374
Deferred income taxes	0	(77)
Loss on extinguishment of debt	8	41
Gain on remeasurement to acquisition date fair value	0	(220)
Loss of affiliates, net of dividends	78	28
Emissions Allowance Expense	319	209
Other	36	145
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(409)	(118)
(Increase) decrease in inventory	(361)	(70)
(Increase) decrease in prepaid expenses and other current assets	(116)	(36)
(Increase) decrease in other assets	251	25
Increase (decrease) in accounts payable and other current liabilities	108	(257)
Increase (decrease) in income tax payables, net and other tax payables	(131)	(375)
Increase (decrease) in deferred income	48	(360)
Increase (decrease) in other liabilities	4	(23)
Net cash provided by operating activities	1,649	1,379
INVESTING ACTIVITIES:
Capital expenditures	(2,711)	(1,534)
Payments to Acquire Businesses and Interest in Affiliates	114	93
Proceeds from Divestiture of Businesses and Interests in Affiliates	1	91
Sale of short-term investments	654	525
Purchase of short-term investments	(1,091)	(372)
Contributions and loans to equity affiliates	(202)	(321)
Proceeds from Collection of Advance to Affiliate	71	195
Payments to Acquire Intangible Assets	(415)	(179)
Other investing	(18)	(40)
Net cash used in investing activities	(3,825)	(1,728)
FINANCING ACTIVITIES:
Borrowings under the revolving credit facilities	4,214	1,251
Repayments under the revolving credit facilities	(2,782)	(1,031)
Issuance of recourse debt	200	7
Repayments of recourse debt	(29)	(7)
Issuance of non-recourse debt	3,554	978
Repayments of non-recourse debt	(1,772)	(1,342)
Payments for financing fees	(83)	(19)
Distributions to noncontrolling interests	(129)	(173)
Acquisitions of noncontrolling interests	(541)	(17)
Contributions from noncontrolling interests	122	95
Sales to Noncontrolling Interests	336	81
Issuance of Preferred Shares in Subsidiaries	60	151
Issuance of preferred stock	0	1,014
Dividends paid on AES common stock	(316)	(301)
Payments for financed capital expenditures	(23)	(6)
Other financing	52	(160)
Net cash provided by financing activities	2,863	521
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(44)	(25)
Net Cash Change Of Discontinued And Held For Sale Businesses	(93)	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	550	147
Cash, cash equivalents and restricted cash, beginning	1,484	1,827
Cash, cash equivalents and restricted cash, ending	2,034	1,974
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	654	576
Cash payments for income taxes, net of refunds	203	407
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Notes payable issued for the acquisition of business interests (see Notes 11 and 18)	0	258
AES Clean Energy Subsidiary | Non-cash [Member]
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Non-cash consideration transferred for AES Clean Energy acquisitions (see Note 18)	$ 0	$ 99

XML

Condensed Consolidated Statements of Changes in Equity Statement - USD ($) $ in Millions	Total	Common Stock [Member]	Treasury Stock, Common [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Preferred Stock
Beginning Balance (Shares) at Dec. 31, 2020		818,400,000	153,000,000.0					0
Beginning Balance at Dec. 31, 2020		$ 8	$ (1,858)	$ 7,561	$ (680)	$ (2,397)	$ 2,086	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				0	(148)	0	119
Total foreign currency translation adjustment, net of income tax				0	0	(53)	(16)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax				0	0	219	27
Total pension adjustments, net of income tax				0	0	0	1
OTHER COMPREHENSIVE INCOME (LOSS)						166	12
Fair Value Adjustment				33	0	0	0
Distributions to noncontrolling interests				0	0	0	(17)
Acquisition of subsidiary shares from noncontrolling interests				(5)	0	(6)	(3)
Contributions from noncontrolling interests				0	0	0	94
Dividends declared on common stock				(101)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		200,000	(700,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ (8)	(12)	0	0	0
Ending Balance (Shares) at Mar. 31, 2021		818,600,000	152,300,000					1,000,000.0
Ending Balance at Mar. 31, 2021		$ 8	$ (1,850)	7,241	(828)	(2,237)	2,291	$ 1,043
Beginning Balance (Shares) at Dec. 31, 2020		818,400,000	153,000,000.0					0
Beginning Balance at Dec. 31, 2020		$ 8	$ (1,858)	7,561	(680)	(2,397)	2,086	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 379
Total foreign currency translation adjustment, net of income tax	(86)
Total pension adjustments, net of income tax	(4)
OTHER COMPREHENSIVE INCOME (LOSS)	59
Issuance of Preferred Shares in Subsidiaries	151
Ending Balance (Shares) at Sep. 30, 2021		818,700,000	152,000,000.0					1,000,000.0
Ending Balance at Sep. 30, 2021		$ 8	$ (1,846)	7,099	(457)	(2,365)	2,282	$ 1,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred Stock, Shares Issued								1,000,000.0
Preferred Stock, Value, Issued								$ 1,043
Proceeds from Issuance of Convertible Preferred Stock				(235)	0	0	0
Beginning Balance (Shares) at Mar. 31, 2021		818,600,000	152,300,000					1,000,000.0
Beginning Balance at Mar. 31, 2021		$ 8	$ (1,850)	7,241	(828)	(2,237)	2,291	$ 1,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		0	0	0	28	0	(103)
Total foreign currency translation adjustment, net of income tax		0	0	0	0	30	11
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		0	0	0	0	(140)	(9)
Total pension adjustments, net of income tax		0	0	0	0	1	(1)
OTHER COMPREHENSIVE INCOME (LOSS)						(109)	1
Fair Value Adjustment		0	0	(36)	0	0	0
Disposition of business interests	(109)
Distributions to noncontrolling interests		0	0	0	0	0	(117)
Acquisition of subsidiary shares from noncontrolling interests				(2)	0	(1)	0
Contributions from noncontrolling interests	1
Sales to noncontrolling interests		$ 0	$ 0	0	0	0	17
Issuance of Preferred Shares in Subsidiaries	$ 151
Issuance and exercise of stock-based compensation benefit plans (Shares)		100,000	0
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ 0	(7)	0	0	0
Common Stock, Dividends, Per Share, Declared	$ 0.1505
Ending Balance (Shares) at Jun. 30, 2021		818,700,000	152,300,000					1,000,000.0
Ending Balance at Jun. 30, 2021		$ 8	$ (1,850)	7,211	(800)	(2,347)	2,132	$ 1,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from Issuance of Convertible Preferred Stock				1
Net income	$ 485	0	0	0	343	0	145
Total foreign currency translation adjustment, net of income tax	(58)	0	0	0	0	(33)	(25)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		0	0	0	0	18	6
Total pension adjustments, net of income tax	(3)	0	0	0	0	1	2
OTHER COMPREHENSIVE INCOME (LOSS)	$ (31)					(14)	(17)
Distributions to noncontrolling interests		0	0	0	0	0	(40)
Acquisition of subsidiary shares from noncontrolling interests				(8)	0	(4)	0
Sales to noncontrolling interests		0	0	(6)	0	0	62
Dividends declared on common stock		$ 0	$ 0	(100)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		0	(300,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ (4)	(2)	0	0	0
Common Stock, Dividends, Per Share, Declared	$ 0.1505
Ending Balance (Shares) at Sep. 30, 2021		818,700,000	152,000,000.0					1,000,000.0
Ending Balance at Sep. 30, 2021		$ 8	$ (1,846)	7,099	(457)	(2,365)	2,282	$ 1,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	$ 2,798
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	(1,089)
Beginning Balance (Shares) at Dec. 31, 2021		818,700,000	152,000,000.0					1,000,000.0
Beginning Balance at Dec. 31, 2021	4,567	$ 8	$ (1,845)	7,106	(1,089)	(2,220)	1,769	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				0	115	0	94
Total foreign currency translation adjustment, net of income tax				0	0	131	1
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax				0	0	265	22
Total pension adjustments, net of income tax				0	0	1	0
OTHER COMPREHENSIVE INCOME (LOSS)						397	23
Distributions to noncontrolling interests				0	0	0	(25)
Acquisition of subsidiary shares from noncontrolling interests				(93)	0	(76)	(367)
Contributions from noncontrolling interests				0	0	0	86
Sales to noncontrolling interests				7	0	0	30
Issuance of Preferred Shares in Subsidiaries				0	0	0	60
Dividends declared on common stock				(105)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		0	(1,100,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ (13)	(12)	0	0	0
Ending Balance (Shares) at Mar. 31, 2022		818,700,000	150,900,000					1,000,000.0
Ending Balance at Mar. 31, 2022		$ 8	$ (1,832)	6,903	(974)	(1,899)	1,670	$ 838
Beginning Balance (Shares) at Dec. 31, 2021		818,700,000	152,000,000.0					1,000,000.0
Beginning Balance at Dec. 31, 2021	4,567	$ 8	$ (1,845)	7,106	(1,089)	(2,220)	1,769	$ 838
Ending Balance (Shares) at Jun. 30, 2022		818,700,000	150,900,000					1,000,000.0
Ending Balance at Jun. 30, 2022		$ 8	$ (1,832)	6,924	(1,153)	(1,790)	1,858	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature	13
Beginning Balance (Shares) at Dec. 31, 2021		818,700,000	152,000,000.0					1,000,000.0
Beginning Balance at Dec. 31, 2021	4,567	$ 8	$ (1,845)	7,106	(1,089)	(2,220)	1,769	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	481
Total foreign currency translation adjustment, net of income tax	(97)
Total pension adjustments, net of income tax	(2)
OTHER COMPREHENSIVE INCOME (LOSS)	688
Issuance of Preferred Shares in Subsidiaries	60
Ending Balance (Shares) at Sep. 30, 2022		818,800,000	150,800,000					1,000,000.0
Ending Balance at Sep. 30, 2022	$ 5,461	$ 8	$ (1,832)	6,818	(732)	(1,691)	2,052	$ 838
Beginning Balance (Shares) at Mar. 31, 2022		818,700,000	150,900,000					1,000,000.0
Beginning Balance at Mar. 31, 2022		$ 8	$ (1,832)	6,903	(974)	(1,899)	1,670	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0	$ 0	0	(179)	0	50
Total foreign currency translation adjustment, net of income tax				0	0	(146)	(3)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax				0	0	255	15
OTHER COMPREHENSIVE INCOME (LOSS)						109	12
Distributions to noncontrolling interests				0	0	0	(45)
Acquisition of subsidiary shares from noncontrolling interests				0	0	0	(2)
Contributions from noncontrolling interests				0	0	0	3
Sales to noncontrolling interests				10	0	0	170
Issuance and exercise of stock-based compensation benefit plans (Shares)		0	0
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ 0	(11)	0	0	0
Common Stock, Dividends, Per Share, Declared	$ 0.1580
Ending Balance (Shares) at Jun. 30, 2022		818,700,000	150,900,000					1,000,000.0
Ending Balance at Jun. 30, 2022		$ 8	$ (1,832)	6,924	(1,153)	(1,790)	1,858	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 446	0	0	0	421	0	31
Total foreign currency translation adjustment, net of income tax	(80)	0	0	0	0	(75)	(4)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		0	0	0	0	174	14
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent		0	0	0	0	0	1
Total pension adjustments, net of income tax	(1)
OTHER COMPREHENSIVE INCOME (LOSS)	$ 124	0	0	0	0	99	11
Distributions to noncontrolling interests		$ 0	$ 0	0	0	0	(38)
Acquisition of subsidiary shares from noncontrolling interests				(3)	0	0	(2)
Contributions from noncontrolling interests				0	0	0	78
Sales to noncontrolling interests				(2)	0	0	114
Dividends declared on common stock				(106)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		100,000	(100,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	$ 0	(5)	0	0	0
Common Stock, Dividends, Per Share, Declared	$ 0.1580
Ending Balance (Shares) at Sep. 30, 2022		818,800,000	150,800,000					1,000,000.0
Ending Balance at Sep. 30, 2022	$ 5,461	$ 8	$ (1,832)	$ 6,818	$ (732)	$ (1,691)	$ 2,052	$ 838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	$ 3,409
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	$ (732)

XML

Financial Statement Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

FINANCIAL STATEMENT PRESENTATION

FINANCIAL STATEMENT PRESENTATION

Consolidation — In this Quarterly Report, the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity, including its subsidiaries and affiliates. The terms “The AES Corporation” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, VIEs in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting, except for our investment in Alto Maipo, for which we have elected the fair value option as permitted under ASC 825. All intercompany transactions and balances have been eliminated in consolidation.

Interim Financial Presentation — The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of expected results for the year ending December 31, 2022. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2021 audited consolidated financial statements and notes thereto, which are included in the 2021 Form 10-K filed with the SEC on February 28, 2022 (the “2021 Form 10-K”).

Reclassifications — To comply with newly adopted accounting standards, certain prior period adjustments in the consolidated financial statements have been reclassified to conform to the current presentation. The beneficial conversion feature associated with the Equity Units was reclassified from Additional paid-in capital to Preferred stock in the Consolidated Balance Sheet for the year ended December 31, 2021. See further detail in the new accounting pronouncements discussion.

Cash, Cash Equivalents, and Restricted Cash — The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheet that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows (in millions):

	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	1,553	$	943
Restricted cash	314		304
Debt service reserves and other deposits	167		237
Cash, Cash Equivalents, and Restricted Cash	$	2,034	$	1,484

ASC 326 - Financial Instruments - Credit Losses - The following table represents the rollforward of the allowance for credit losses for the period indicated (in millions):

Nine Months Ended September 30, 2022	Accounts Receivable (1)		Mong Duong Loan Receivable (2)		Argentina Receivables		Lease Receivable (3)		Other		Total
CECL reserve balance at beginning of period	$	3	$	30	$	23	$	—	$	7	$	63
Current period provision	7		—		22		20		—		49
Write-offs charged against allowance	(9)		—		—		—		(6)		(15)
Recoveries collected	2		(1)		—		—		—		1
Foreign exchange	—		—		(8)		—		—		(8)
CECL reserve balance at end of period	$	3	$	29	$	37	$	20	$	1	$	90

Nine Months Ended September 30, 2021	Accounts Receivable (1)		Mong Duong Loan Receivable (2)		Argentina Receivables		Other		Total
CECL reserve balance at beginning of period	$	11	$	32	$	20	$	1	$	64
Current period provision	3		—		5		—		8
Write-offs charged against allowance	(8)		—		—		—		(8)
Recoveries collected	2		(1)		—		(1)		—
Foreign exchange	—		—		(3)		—		(3)
CECL reserve balance at end of period	$	8	$	31	$	22	$	—	$	61

_____________________________

(1)Excludes operating lease receivable allowances and contractual dispute allowances of $2 million as of September 30, 2022 and September 30, 2021, respectively. These reserves are not in scope under ASC 326.

(2)Mong Duong loan receivable credit losses allowance was reclassified to held-for-sale assets on the Condensed Consolidated Balance Sheet as of September 30, 2022.

(3)Lease receivable credit losses allowance at Southland Energy (AES Gilbert).

New Accounting Pronouncements Adopted in 2022 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

New Accounting Standards Adopted
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-05, Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments	The amendments in this update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (a) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3, (b) The lessor would have otherwise recognized a day-one loss. This update could be applied either (1) retrospectively to leases that commenced or were modified on or after the adoption of Update 2016-02 or (2) prospectively to leases that commence or are modified on or after the date that an entity first applies the amendments.	January 1, 2022	The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements.
2020-06, Debt - Debt with conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Equity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity’s Own Equity	The amendments in this update affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation.	January 1, 2022	The Company adopted this standard on a fully retrospective basis and its adoption resulted in a $13 million increase to Preferred Stock and a corresponding decrease to Additional paid-in capital. No impact to Earnings per Share amounts reported in 2021 or 2022.
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022	The Company is implementing the reference rate reform and does not expect these amendments to have a material impact on the financial statements.

New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.

New Accounting Standards Issued But Not Yet Effective
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This update is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.
2022-04,Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations	This update is to provide additional information and disclosures about an entity’s use of supplier finance programs to see how these programs will affect an entity’s working capital, liquidity, and cash flows. Entities that use supplier finance programs as the buyer party should disclose (1) the key terms of the payment terms and assets pledged as security or other forms of guarantees provided and (2) the unpaid amount outstanding, a description of where those obligations are presented on the balance sheet, and a rollforward of those obligations during the annual period.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.

XML

Inventory

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
Fuel and other raw materials	$	689	$	366
Spare parts and supplies	309		238
Total	$	998	$	604

XML

Fair Value

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5—Fair Value in Item 8.—Financial Statements and Supplementary Data of our 2021 Form 10-K.

Recurring Measurements

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, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	639	$	—	$	639	$	—	$	199	$	—	$	199
Government debt securities	—		4		—		4		—		—		—		—
Total debt securities	—		643		—		643		—		199		—		199
EQUITY SECURITIES:
Mutual funds	26		10		—		36		31		13		—		44
Total equity securities	26		10		—		36		31		13		—		44
DERIVATIVES:
Interest rate derivatives	—		476		—		476		—		51		2		53
Cross-currency derivatives	—		—		—		—		—		5		—		5
Foreign currency derivatives	—		35		70		105		—		29		108		137
Commodity derivatives	—		225		18		243		—		32		6		38
Total derivatives — assets	—		736		88		824		—		117		116		233
TOTAL ASSETS	$	26	$	1,389	$	88	$	1,503	$	31	$	329	$	116	$	476
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	1	$	1	$	2	$	—	$	286	$	8	$	294
Cross-currency derivatives	—		36		—		36		—		11		—		11
Foreign currency derivatives	—		34		—		34		—		35		—		35
Commodity derivatives	—		239		16		255		—		37		7		44
Total derivatives — liabilities	—		310		17		327		—		369		15		384
TOTAL LIABILITIES	$	—	$	310	$	17	$	327	$	—	$	369	$	15	$	384

As of September 30, 2022, all available-for-sale debt securities had stated maturities within one year. There were no other-than-temporary impairments of marketable securities during the three and nine months ended September 30, 2022. Credit-related impairments are recognized in earnings under ASC 326. Gains and losses on the sale of investments are determined using the specific-identification method. 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,
	2022		2021		2022		2021
Gross proceeds from sale of available-for-sale securities	$	318	$	207	$	665	$	507

The following tables present a reconciliation of net derivative 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, 2022 and 2021 (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.

Three Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	1	$	—	$	50	$	37	$	88
Total realized and unrealized gains (losses):
Included in earnings	1		—		22		(1)		22
Included in other comprehensive income — derivative activity	(1)		—		7		(14)		(8)
Included in regulatory (assets) liabilities	—		—		—		(3)		(3)
Settlements	—		—		(9)		—		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		(2)		(2)
Transfers of (assets) liabilities, net out of Level 3	(2)		—		—		(15)		(17)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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)	$	13
Three Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	(192)	$	(32)	$	97	$	15	$	(112)
Total realized and unrealized gains (losses):
Included in earnings	12		20		22		(1)		53
Included in other comprehensive income — derivative activity	(14)		—		7		(15)		(22)
Included in other comprehensive income — foreign currency translation activity	—		2		—		—		2
Included in regulatory (assets) liabilities	—		—		—		(2)		(2)
Settlements	12		—		(9)		1		4
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	—	$	4	$	15	$	(1)	$	18

Nine Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(6)	$	—	$	108	$	(1)	$	101
Total realized and unrealized gains (losses):
Included in earnings	4		—		(22)		(4)		(22)
Included in other comprehensive income — derivative activity	13		—		(7)		(7)		(1)
Included in regulatory (assets) liabilities	—		—		—		13		13
Settlements	(1)		—		(9)		1		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(11)		—		—		—		(11)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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	$	3	$	—	$	(44)	$	1	$	(40)
Nine Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(236)	$	(2)	$	146	$	2	$	(90)
Total realized and unrealized gains (losses):
Included in earnings	13		(13)		(1)		(1)		(2)
Included in other comprehensive income — derivative activity	6		—		(1)		(3)		2
Included in other comprehensive income — foreign currency translation activity	—		4		—		—		4
Included in regulatory (assets) liabilities	—		—		—		1		1
Settlements	35		1		(27)		(1)		8
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	1	$	4	$	(29)	$	(1)	$	(25)

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2022 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiaries’ credit spreads	1% - 2.2% (2.1%)
Foreign currency:
Argentine peso	70		Argentine peso to U.S. dollar currency exchange rate after one year	272 - 748 (498)
Commodity:
Other	2
Total	$	71

For interest rate derivatives and foreign currency derivatives, increases (decreases) in the estimates of the Company’s own credit spreads would decrease (increase) the value of the derivatives in a liability position. For foreign currency derivatives, increases (decreases) in the estimate of the above exchange rate would increase (decrease) the value of the derivative.

Nonrecurring Measurements

The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense, as applicable, on the Condensed Consolidated Statements of Operations. The following table summarizes our major categories of assets measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2022				Level 1		Level 2		Level 3
Long-lived assets held and used:
Maritza	4/30/2022	$	920	$	—	$	—	$	452	$	468
Held-for-sale businesses: (2)
Jordan (3)	9/30/2022	$	216	$	—	$	170	$	—	$	51
	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2021				Level 1		Level 2		Level 3
Long-lived assets held and used:
Puerto Rico	3/31/2021	$	548	$	—	$	—	$	73	$	475
Mountain View I & II	4/30/2021	78		—		—		11		67
Ventanas 3 & 4	6/30/2021	661		—		—		12		649
Angamos	6/30/2021	241		—		—		86		155
Dispositions: (2)
Estrella del Mar I	9/30/2021	$	17	$	—	$	6	$	—	$	11

_____________________________

(1)Represents the carrying values at the dates of measurement, before fair value adjustment.

(2)See Note 17 — Held-for-Sale and Dispositions for further information.

(3)The Jordan disposal group was written down to it’s fair value of $170 million. The resulting pre-tax loss of $51 million includes costs to sell of $5 million.

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, 2022 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Maritza	$	452	Discounted cash flow	Annual revenue growth	(66)% to 11% (-11%)
				Annual variable margin	(66)% to 23% (-1%)
				Weighted-average cost of capital	20% to 25% (21%)
Total	$	452

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, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	92	$	132	$	—	$	—	$	132
Liabilities:	Non-recourse debt	17,358		16,368		—		14,870		1,498
	Recourse debt	4,668		4,175		—		4,175		—

		December 31, 2021
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	55	$	117	$	—	$	—	$	117
Liabilities:	Non-recourse debt	14,811		16,091		—		16,065		26
	Recourse debt	3,754		3,818		—		3,818		—

_____________________________

(1)These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $2 million as of September 30, 2022 and December 31, 2021.

XML

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2021 Form 10-K.

Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of September 30, 2022, 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 Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	6,464	2059
Cross-currency swaps (Brazilian real)	254		2026
Foreign Currency:
Colombian peso	120		2024
Euro	54		2024
Mexican peso	53		2023
Brazilian real	36		2024
Chilean peso	27		2024
Argentine peso	7		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	106	2029
Power (in MWhs)	22	2040
Coal (in Tons or Metric Tons)	6	2027

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	September 30, 2022						December 31, 2021
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	475	$	1	$	476	$	53	$	—	$	53
Cross-currency derivatives	—		—		—		5		—		5
Foreign currency derivatives	20		85		105		28		109		137
Commodity derivatives	19		224		243		6		32		38
Total assets	$	514	$	310	$	824	$	92	$	141	$	233
Liabilities
Interest rate derivatives	$	2	$	—	$	2	$	288	$	6	$	294
Cross-currency derivatives	36		—		36		11		—		11
Foreign currency derivatives	22		12		34		23		12		35
Commodity derivatives	14		241		255		11		33		44
Total liabilities	$	74	$	253	$	327	$	333	$	51	$	384

	September 30, 2022				December 31, 2021
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	284	$	157	$	85	$	83
Noncurrent	540		170		148		301
Total	$	824	$	327	$	233	$	384

Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	238	$	10	$	865	$	97
Cross-currency derivatives	—		(14)		—		(11)
Foreign currency derivatives	8		(7)		(4)		(27)
Commodity derivatives	5		3		66		20
Total	$	251	$	(8)	$	927	$	79
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(11)	$	(24)	$	(61)	$	(76)
Cross-currency derivatives	—		(13)		—		(15)
Foreign currency derivatives	2		(7)		2		(12)
Commodity derivatives	(4)		4		(5)		1
Total	$	(13)	$	(40)	$	(64)	$	(102)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	6	$	(22)	$	(29)	$	(10)
Hedged items	—		27		22		8
Total	$	6	$	5	$	(7)	$	(2)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	—	$	(16)	$	—
Gain reclassified from AOCL to earnings due to change in forecast	$	2	$	—	$	17	$	—
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	1	$	(1)	$	4	$	104
Foreign currency derivatives	35		28		20		24
Commodity derivatives and other	3		17		20		(64)
Total	$	39	$	44	$	44	$	64

AOCL is expected to decrease pre-tax income from continuing operations for the nine months ended September 30, 2023 by $24 million, primarily due to interest rate derivatives.

XML

Financing Receivables

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

FINANCING RECEIVABLES

FINANCING RECEIVABLES

Receivables with contractual maturities of greater than one year are considered financing receivables. The following table presents financing receivables by country as of the dates indicated (in millions):

	September 30, 2022						December 31, 2021
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
U.S.	$	49	$	—	$	49	$	—	$	—	$	—
Chile	17		—		17		17		—		17
Argentina	6		—		6		11		1		10
Other	22		—		22		30		—		30
Total	$	94	$	—	$	94	$	58	$	1	$	57

U.S. — AES has recorded a non-current receivable in connection with future premium payments on a heat rate call option entered into on behalf of the Southland Energy CCGT units. The premium payments are expected to be received in 2024.

Chile — AES Andes has recorded noncurrent receivables pertaining to revenues recognized on regulated energy contracts that were impacted by the Stabilization Fund created by the Chilean government in October 2019, in conjunction with the Tariff Stabilization Law. Historically, the government updated the prices for these contracts every six months to reflect the indexation the contracts have to exchange rates and commodities prices. The Stabilization Fund does not allow the pass-through of these contractual indexation updates to customers beyond the

pricing in effect at July 1, 2019, until new lower-cost renewable contracts are incorporated into pricing in 2023. Consequently, costs incurred in excess of the July 1, 2019 price will be accumulated and borne by generators.

Argentina — Collection of the principal and interest on these receivables is subject to various business risks and uncertainties, including, but not limited to, the operation of power plants which generate cash for payments of these receivables, regulatory changes that could impact the timing and amount of collections, and economic conditions in Argentina. The Company monitors these risks, including the credit ratings of the Argentine government, on a quarterly basis to assess the collectability of these receivables. The Company accrues interest on these receivables once the recognition criteria have been met. The Company’s collection estimates are based on assumptions that it believes to be reasonable, but are inherently uncertain. Actual future cash flows could differ from these estimates.

XML

Investment In and Advances To Affiliates

9 Months Ended

Sep. 30, 2022

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

INVESTMENTS IN AND ADVANCES TO AFFILIATES

Summarized Financial Information — The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates (1)				Majority-Owned Unconsolidated Subsidiaries
Nine Months Ended September 30,	2022		2021		2022		2021
Revenue	$	1,218	$	866	$	1	$	1
Operating margin (loss)	(322)		45		—		—
Net loss	(410)		(108)		—		(4)

_______________________________

(1)         As of July 1, 2021, AES began to account for its investment in Fluence quarterly, on a three-month lag. This shift in timing is necessary due to the nature of the entity subsequent to its IPO.

Alto Maipo — On May 26, 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore will not consolidate the entity. The Company has elected the fair value option to account for its investment in Alto Maipo as management believes this approach will better reflect the economics of its equity interest. As of September 30, 2022, the fair value is insignificant. Alto Maipo is reported in the South America SBU reportable segment.

Gas Natural Atlántico II — On September 13, 2021, the Company acquired the remaining equity interest in Gas Natural Atlántico II, S. de. R.L., a partnership whose purpose is to construct transmission lines for Colon. After additional assets were acquired, the Company remeasured the investment at the acquisition-date fair value, resulting in the recognition of a $6 million gain, recorded in Other income on the Condensed Consolidated Statement of Operations. The partnership, previously recorded as an equity method investment, is now consolidated by AES and is reported in the MCAC SBU reportable segment.

Uplight — On July 27, 2021, the Company closed on a transaction involving existing and new shareholders of Uplight. As part of the transaction, the Company contributed $37 million to Uplight however AES’s ownership interest in Uplight decreased from 32.3% to 29.6% primarily due to larger contributions from other investors. The transaction was accounted for as a partial disposition in which AES recognized a loss of $11 million in Gain on disposal and sale of business interests, mainly as a result of payments to holders of stock options and income units as well as expenses associated with the transaction. As the Company still does not control Uplight after the transaction, it continues to be accounted for as an equity method investment and is reported as part of Corporate and Other.

Fluence — On June 9, 2021, Fluence issued new shares to the Qatar Investment Authority (“QIA”) for $125 million, which following the completion of the transaction, represented a 13.6% ownership interest in Fluence. As a result of the transaction, which AES has accounted for as a partial disposition, AES’ ownership interest in Fluence decreased from 50% to 43.2%. The Company recognized a gain of $60 million in Gain on disposal and sale of business interests.

On November 1, 2021, Fluence completed its IPO of 35,650,000 of its Class A common stock at a price of $28 per share, including the exercise of the underwriter’s option. Fluence received approximately $936 million in proceeds, after expenses, and as a result of the transaction, AES’ ownership interest in Fluence decreased to 34.2%. As the Company still does not control Fluence after these transactions, it continues to be accounted for as an equity method investment and is reported as part of Corporate and Other.

Grupo Energía Gas Panamá — In April 2021, Grupo Energía Gas Panamá, a joint venture between AES and InterEnergy Power & Gas Limited, completed the acquisition of a combined cycle natural gas development project.

AES holds a 49% ownership interest in the affiliate. The Company contributed $21 million to the joint venture as of September 30, 2021 and has contributed a total of $45 million as of September 30, 2022. As the Company does not control the joint venture, it is accounted for as an equity method investment and is reported in the MCAC SBU reportable segment.

sPower — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, a consolidated entity, which will serve as the development vehicle for all future renewable projects in the U.S. Since the sPower development platform was carved-out of AES’ existing equity method investment, this transaction resulted in a $102 million decrease in the carrying value of the sPower investment and the Company recognized a gain of $214 million in Other income. See Note 18—Acquisitions for further information. As the Company still does not control sPower after the transaction, it continues to be accounted for as an equity method investment and is reported in the US and Utilities SBU reportable segment.

Guacolda — In February 2021, AES Andes entered into an agreement to sell its 50% ownership interest in Guacolda for $34 million. On July 20, 2021, the Company completed the sale, resulting in a pre-tax gain on sale of $34 million, recorded in Gain on disposal and sale of business interests. Prior to its sale, the Guacolda equity method investment was reported in the South America SBU reportable segment.

XML

Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

DEBT

DEBT

Recourse Debt

In September 2022, AES executed an amendment to its revolving credit facility. The aggregate commitment under the new agreement is $1.5 billion and matures in August 2027. The existing credit agreement had an aggregate commitment of $1.25 billion and matured in September 2026. As of September 30, 2022, AES had outstanding drawings under its revolving credit facility of $1.1 billion.

In September 2022, the AES Corporation entered into a term loan agreement, under which AES can obtain term loans in an aggregate principal amount of up to $200 million, with all term loans to mature no later than September 30, 2024. On September 30, 2022 the AES Corporation borrowed $200 million under this agreement with a maturity date of September 30, 2024.

In July 2021, AES offered to exchange up to $800 million of the newly registered 1.375% Senior Notes due in 2026 for up to $800 million of the existing unregistered 1.375% Senior Notes due in 2026 and up to $1 billion of our newly registered 2.45% Senior Notes due in 2031 for up to $1 billion of the existing unregistered 2.45% Senior Notes due in 2031. The terms of the new notes are identical in all material respects to the terms of the old notes with the exception that the new notes have been registered under the Securities Act of 1933, as amended, and the transfer restrictions and registration rights relating to the old notes do not apply to the new notes. In August 2021, $798 million and $997 million of the 2026 and 2031 Notes were exchanged under the offer, respectively. Although not all investors participated in the exchange, there was no change to the outstanding indebtedness.

Non-Recourse Debt

During the nine months ended September 30, 2022, the Company’s subsidiaries had the following significant debt transactions:

Subsidiary	Transaction Period	Issuances		Repayments
AES Andes (1)	Q1, Q2, Q3	$	577	$	(95)
AES Brasil	Q1, Q2	469		(201)
United Kingdom	Q1	710		(350)
Netherlands/Panama	Q1	500		—
El Salvador	Q2	348		(345)
AES Indiana	Q2	200		—
AES Ohio	Q2	140		—
AES Clean Energy	Q2	139		(119)
AES Renewable Holdings	Q3	139		—
AES Dominicana Renewable Energy	Q3	120		—

_____________________________

(1)Issuances relate to AES Andes S.A. and Chivor.

Netherlands and Panama — In March 2022, AES Hispanola Holdings BV, a Netherlands based company, and Colon, as co-borrowers, executed a $500 million bridge loan due in 2023. The Company allocated $450 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively.

United Kingdom — On January 6, 2022, Mercury Chile HoldCo LLC (“Mercury Chile”), a UK based company, executed a $350 million bridge loan and used the proceeds, as well as an additional capital contribution of $196 million from the Parent Company, to purchase the minority interest in AES Andes through intermediate holding companies (see Note 11—Equity for further information). On January 24, 2022, Mercury Chile issued $360 million aggregate principal of 6.5% senior secured notes due in 2027 and used the proceeds from the issuance to fully prepay the $350 million bridge loan.

Non-Recourse Debt Covenants, Restrictions, and Defaults — The terms of the Company's non-recourse debt include certain financial and nonfinancial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include, but are not limited to, maintenance of certain reserves and financial ratios, minimum levels of working capital, and limitations on incurring additional indebtedness.

As of September 30, 2022 and December 31, 2021, approximately $278 million and $370 million, respectively, of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements. These amounts were included within Restricted cash and Debt service reserves and other deposits in the accompanying Condensed Consolidated Balance Sheets.

Various lender and governmental provisions restrict the ability of certain of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $1.1 billion at September 30, 2022.

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of September 30, 2022. Due to the defaults, these amounts are included in the current portion of non-recourse debt:

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets
AES Puerto Rico	Covenant	$	170	$	(181)
AES Jordan PSC (1)	Covenant	69		76
AES Ilumina (Puerto Rico)	Covenant	27		27
AES Jordan Solar	Covenant	7		11
Total		$	273

_____________________________

(1)Classified as current held-for-sale liability on the Condensed Consolidated Balance Sheets.

The above defaults are not payment defaults. In Puerto Rico, the subsidiary non-recourse debt defaults were triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents due to the bankruptcy of the offtaker.

The AES Corporation’s recourse debt agreements include cross-default clauses that will trigger if a subsidiary or group of subsidiaries for which the non-recourse debt is in default provides 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently completed fiscal quarters. As of September 30, 2022, the Company had no defaults which resulted in, or were at risk of triggering, a cross-default under the recourse debt of the Parent Company. In the event the Parent Company is not in compliance with the financial covenants of its revolving credit facility, restricted payments will be limited to regular quarterly shareholder dividends at the then-prevailing rate. Payment defaults and bankruptcy defaults would preclude the making of any restricted payments.

XML

Contingencies and Commitments

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND COMMITMENTS

COMMITMENTS AND CONTINGENCIES Guarantees, Letters of Credit and Commitments — In connection with certain project financings, acquisitions and dispositions, power purchases and other agreements, the Parent Company has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. In the normal course of business, the Parent Company has entered into various agreements, mainly guarantees and letters of credit, to provide financial or performance assurance to third parties on behalf of AES businesses. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a business on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish their intended business purposes. Most of the contingent obligations relate to future

performance commitments which the Company or its businesses expect to fulfill within the normal course of business. The expiration dates of these guarantees vary from less than one year to no more than 16 years.

The following table summarizes the Parent Company’s contingent contractual obligations as of September 30, 2022. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,282	81	$0 — 400
Letters of credit under the unsecured credit facilities	156		44	$0 — 36
Letters of credit under the revolving credit facility	26		12	$0 — 15
Surety bonds	2		2	$1
Total	$	2,466	139

During the nine months ended September 30, 2022, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts of letters of credit.

Contingencies

Environmental — The Company periodically reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. For the periods ended September 30, 2022 and December 31, 2021, the Company recognized liabilities of $10 million and $4 million, respectively, for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of compliance or remediation could be higher or lower than the amount currently accrued. Moreover, where no liability has been recognized, it is reasonably possible that the Company may be required to incur remediation costs or make expenditures in amounts that could be material but could not be estimated as of September 30, 2022. In aggregate, the Company estimates the range of potential losses related to environmental matters, where estimable, to be up to $12 million. The amounts considered reasonably possible do not include amounts accrued as discussed above.

Litigation — The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has recognized aggregate liabilities for all claims of approximately $23 million as of September 30, 2022 and December 31, 2021. These amounts are reported on the Condensed Consolidated Balance Sheets within Accrued and other liabilities and Other noncurrent liabilities. A significant portion of these accrued liabilities relate to regulatory matters and commercial disputes in international jurisdictions. There can be no assurance that these accrued liabilities will be adequate to cover all existing and future claims or that we will have the liquidity to pay such claims as they arise.

Where no accrued liability has been recognized, it is reasonably possible that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material but could not be estimated as of September 30, 2022. The material contingencies where a loss is reasonably possible primarily include disputes with offtakers, suppliers and EPC contractors; alleged breaches of contract; alleged violation of laws and regulations; income tax and non-income tax matters with tax authorities; and regulatory matters. In aggregate, the Company estimates the range of potential losses, where estimable, related to these reasonably possible material contingencies to be between $239 million and $704 million. The amounts considered reasonably possible do not include the amounts accrued, as discussed above. These material contingencies do not include income tax-related contingencies which are considered part of our uncertain tax positions.

Tietê GSF Settlement — In accordance with the regulation published by ANEEL in December 2020 regarding the incorrect application of the GSF mechanism between 2013 and 2018, Tietê will be compensated in the form of a concession extension period, initially determined to be 2.7 years, which will be amortized from the date of the agreement until the end of the new concession period. As of December 31, 2020, the compensation to be received from the concession extension was estimated to have a fair value of $184 million, based on a preliminary time-value equivalent calculation made by the CCEE. In March 2021, the CCEE’s final calculation of fair value was $190 million and the Company recognized an additional reversal of Non-Regulated Cost of Sales of $6 million. In August 2021, ANEEL published Resolution 2.919/2021, establishing an extension for the end of the concession originally granted to AES Brasil’s hydroelectric plants, from 2029 to 2032. On April 14, 2022, the amended term was finalized and agreed upon by ANEEL and AES.

XML

Leases (Notes)

9 Months Ended

Sep. 30, 2022

Lessor, Lease, Description [Line Items]

Lessor, Operating Leases

LEASES

LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Revenue	2022		2021		2022		2021
Total lease revenue	$	134	$	193	$	408	$	454
Less: Variable lease revenue	(14)		(24)		(37)		(63)
Total Non-variable lease revenue	$	120	$	169	$	371	$	391

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment, net for the periods indicated (in millions):

Property, Plant and Equipment, Net	September 30, 2022		December 31, 2021
Gross assets	$	1,701	$	2,423
Less: Accumulated depreciation	(398)		(765)
Net assets	$	1,303	$	1,658

The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of September 30, 2022. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.

The following table shows the future lease receipts as of September 30, 2022 for the remainder of 2022 through 2026 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2022	$	6	$	121
2023	24		372
2024	24		373
2025	24		374
2026	24		273
Thereafter	361		723
Total	$	463	$	2,236
Less: Imputed interest	(263)
Present value of total lease receipts	$	200

Battery Storage Lease Arrangements — The Company constructs and operates projects consisting only of a stand-alone battery energy storage system (“BESS”) facility, as well as projects that pair a BESS with solar energy systems. These projects allow more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. These arrangements include both lease and non-lease elements under ASC 842, with the BESS component typically constituting a sales-type lease. The Company recognized lease income on sales-type leases through interest income of $4 million and $20 million for the three and nine months ended September 30, 2022, respectively; and $3 million and $11 million for the three and nine months ended September 30, 2021, respectively. During the second quarter of 2022, the Company recognized a full allowance of $20 million on a sales-type lease receivable at AES Gilbert. See Note 14—Other Income and Expense for further information.

Prior to January 1, 2022, due to the variable-based nature of lease payments under certain contracts, the Company recorded a loss at commencement of sales-type leases of $13 million for the nine months ended September 30, 2021. These amounts are recognized in Other expense in the Condensed Consolidated Statement of Operations. See Note 14—Other Income and Expense for further information. Effective January 1, 2022, the Company adopted ASU 2021-05 in which lessors classify and account for certain leases with primarily variable-based lease payments as operating leases. The Company adopted this standard on a prospective basis. See Note 1—Financial Statement Presentation for further information.

XML

Redeemable Stocks of Subsidiaries (Notes)

9 Months Ended

Sep. 30, 2022

Redeemable Stock of Subsidiaries [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

REDEEMABLE STOCK OF SUBSIDIARIES

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
IPALCO common stock	$	700	$	700
AES Clean Energy Development common stock	424		497
AES Indiana preferred stock	60		60
Potengi common and preferred stock	17		—
Total redeemable stock of subsidiaries	$	1,201	$	1,257

Potengi — In March 2022, Tucano Holding I (“Tucano”), a subsidiary of AES Brasil, issued new shares in the Potengi wind development project. BRF S.A. (“BRF”) acquired shares representing 24% of the equity in the project for $12 million, reducing the Company’s indirect ownership interest in Potengi to 35.5%. As the Company maintained control after the transaction, Potengi continues to be consolidated by the Company. As part of the transaction, BRF was given an option to sell its entire ownership interest at the conclusion of the PPA term. As a result, the minority ownership interest is considered temporary equity, which will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized against permanent equity in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable.

AES Clean Energy Development — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, which will serve as the development vehicle for all future renewable projects in the U.S. As part of the transaction, AlMCo, our existing partner in the sPower equity method investment, received a 25% minority ownership interest in the newly formed entity along with certain partnership rights, though not currently in effect, that would enable AIMCo to exit in the future. As a result, the minority ownership interest is considered temporary equity.

During the second quarter of 2021, the Company recorded measurement period adjustments to the estimated fair values of the sPower and AES Renewable Holdings development platforms and the value of the partnership rights initially recorded in the first quarter of 2021, which resulted in a $81 million increase in the value of the temporary equity. These measurement period adjustments primarily relate to higher expected developer profits and a higher growth rate, reflective of additional information that became available regarding market participants’ views of the value of early-stage renewable development projects as of the date of acquisition. The temporary equity will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized against permanent equity in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable. See Note 18—Acquisitions for further information.

XML

Equity

1 Months Ended

Feb. 05, 2021

Equity [Abstract]

EQUITY

EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

Upon reconsideration of the nature of the Equity Units, the Company re-evaluated its accounting assessment and concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In the fourth quarter of 2021, the Company also corrected the classification of certain amounts in the Consolidated Balance Sheet and Statement of Changes in Equity to reflect the 2024 Purchase Contracts and Series A Preferred Stock as one unit of account. The corrections have no impact on the Company's net earnings, total assets, cash flows, or segment information.

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,275,962 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of September 30, 2022, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8680, equivalent to a reference price of $25.85. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of September 30, 2022, the present value of the Contract Adjustment Payments was $106 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

AES Clean Energy — During the second and third quarters of 2022, AES Clean Energy, through multiple transactions, sold noncontrolling interests in multiple project companies to tax equity partners, resulting in a $98 million and $112 million increase to NCI, respectively. AES Clean Energy is reported in the US and Utilities SBU reportable segment.

AES Brasil — On December 18, 2020, the AES Tietê board approved a proposal for the corporate reorganization and exchange of shares issued by AES Tietê with newly issued shares of AES Brasil, a formerly wholly-owned entity of AES Tietê, with the intent to list AES Brasil on Novo Mercado, a listing segment of the Brazilian stock exchange that requires equity capital to be composed only of common shares, as the 100% shareholder of AES Tietê. The reorganization and the exchange of shares was completed on March 26, 2021, and the shares issued by AES Brasil started trading on Novo Mercado on March 29, 2021. The Company maintains majority representation on AES Brasil’s board of directors, and as such, continues to consolidate AES Brasil.

Through multiple transactions in the first half of 2021, AES Holdings Brasil Ltda. acquired an additional 1.6% ownership in AES Brasil for $17 million. These transactions increased the Company’s ownership interest in AES Brasil to 45.7% and resulted in a $13 million decrease in Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $6 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $7 million.

In September 2022, AES Brasil commenced a private placement offering for its existing shareholders to subscribe for up to 107 million newly issued shares. AES Holdings Brasil Ltda. subscribed for 54 million shares and noncontrolling interest holders subscribed for 53 million shares, thereby increasing AES’ indirect beneficial interest in AES Brasil to 47.4%. AES Brasil received $77 million from noncontrolling interest holders during the third quarter of 2022, prior to the issuance of the shares in October 2022. Since the consideration received was nonrefundable, the impact was recorded in noncontrolling interests. AES Brasil is reported in the South America SBU reportable segment.

Chile Renovables — On July 29, 2021, AES Andes completed the sale of a 49% ownership interest in Chile Renovables SpA (“Chile Renovables”), a subsidiary which owns the Los Cururos wind facility, to Global Infrastructure Management, LLC (“GIP”) for $53 million. AES Andes retained a 51% ownership interest in Chile Renovables and the transaction decreased the Company’s indirect ownership in the subsidiary to 34%. As part of the transaction, AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP will make additional contributions to maintain its 49% ownership interest.

In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the South America SBU reportable segment.

Guaimbê Holding — In April 2021, Guaimbê Solar Holding S.A (“Guaimbê Holding”), a subsidiary of AES Brasil which wholly owns the Guaimbê solar complex and the Alto Sertão II wind facility, issued preferred shares representing 19.9% ownership in the subsidiary for total proceeds of $158 million. The transaction decreased the Company’s indirect ownership interest in the operational entities from 45.3% to 36.3%.

In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued additional preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction further decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the South America SBU reportable segment.

AES Andes — On December 29, 2020, AES Andes commenced a preemptive rights offering for its existing shareholders to subscribe for up to 1.98 billion of newly issued shares to fund its renewable growth program. The period ended on February 5, 2021 and Inversiones Cachagua SpA (“Cachagua”), an AES subsidiary, subscribed for 1.35 billion shares at a cost of $205 million, increasing AES’ indirect beneficial interest in AES Andes from 67% to 67.1%. The noncontrolling interest holders subscribed for 629 million shares, resulting in additional capital contributions of $94 million.

In January 2022, Cachagua completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98%. Through multiple transactions following the tender offer, Cachagua acquired an additional 1% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 99%. These transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the South America SBU reportable segment.

Colon — On September 13, 2021, the Company acquired the remaining 49.9% minority ownership interest in Colon. Following the completion of the transaction, the Company is now the sole owner of Colon. In conjunction with the acquisition, a note payable was recorded that is expected to be satisfied over two installments by the end of 2023. This transaction resulted in a $12 million decrease in Parent Company Stockholders’ Equity due to a decrease in additional paid-in-capital of $8 million and the reclassification of accumulated other comprehensive losses from Redeemable stock of subsidiaries to AOCL of $4 million. Colon is reported in the MCAC SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2022 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,734)	$	(456)	$	(30)	$	(2,220)
Other comprehensive income (loss) before reclassifications	(90)		653		—		563
Amount reclassified to earnings	—		41		1		42
Other comprehensive income (loss)	(90)		694		1		605
Reclassification from NCI due to share repurchases	(53)		(20)		(3)		(76)
Balance at the end of the period	$	(1,877)	$	218	$	(32)	$	(1,691)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign currency translation adjustment, net
	Gain on disposal and sale of business interests	$	—	$	—	$	—	$	(3)
	Net income attributable to The AES Corporation	$	—	$	—	$	—	$	(3)
Derivative gains (losses), net
	Non-regulated revenue	$	—	$	(1)	$	(1)	$	(1)
	Non-regulated cost of sales	(5)		2		(7)		(2)
	Interest expense	(9)		(33)		(42)		(62)
	Asset impairment expense	—		—		(16)		(13)
	Foreign currency transaction gains (losses)	2		(7)		2		(12)
	Income from continuing operations before taxes and equity in earnings of affiliates	(12)		(39)		(64)		(90)
	Income tax expense	(1)		10		12		23
	Net equity in earnings (losses) of affiliates	(1)		(1)		—		(12)
	Net income	(14)		(30)		(52)		(79)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	3		9		11		22
	Net income attributable to The AES Corporation	$	(11)	$	(21)	$	(41)	$	(57)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(2)	$	(1)	$	(3)
	Non-regulated cost of sales	—		(1)		—		(1)
	Other expense	(2)		—		(2)		(1)
	Income from continuing operations before taxes and equity in earnings of affiliates	(2)		(3)		(3)		(5)
	Income tax expense	1		(1)		1		—
	Net income	(1)		(4)		(2)		(5)
	Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	1		2		1		2
	Net income attributable to The AES Corporation	$	—	$	(2)	$	(1)	$	(3)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(11)	$	(23)	$	(42)	$	(63)

Common Stock Dividends — The Parent Company paid dividends of $0.1580 per outstanding share to its common stockholders during the first, second, and third quarters of 2022 for dividends declared in December 2021, February 2022 and July 2022, respectively.

On October 7, 2022, the Board of Directors declared a quarterly common stock dividend of $0.1580 per share payable on November 15, 2022, to shareholders of record at the close of business on November 1, 2022.

XML

Segments

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENTS

SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally and is mainly organized by geographic regions, which provides a socio-political-economic understanding of our business. The management reporting structure is organized by four SBUs led by our President and Chief Executive Officer: US and Utilities, South America, MCAC, and Eurasia SBUs. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. In January 2022, we internally announced a reorganization as a part of our ongoing strategy to align our business to meet our customers' needs and deliver on our major strategic objectives. The Company performed an assessment in accordance with ASC 280 and determined there were no changes to its operating or reportable segments.

Corporate and Other — Included in “Corporate and Other” are the results of the AES self-insurance company and certain equity affiliates, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

The Company uses Adjusted PTC as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities. The Company has concluded that Adjusted PTC better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company’s results.

Revenue and Adjusted PTC are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees, and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2022		2021		2022		2021
US and Utilities SBU	$	1,506	$	1,327	$	3,820	$	3,248
South America SBU	926		896		2,616		2,744
MCAC SBU	940		559		2,192		1,584
Eurasia SBU	261		257		947		804
Corporate and Other	24		21		83		82
Eliminations	(30)		(24)		(101)		(91)
Total Revenue	$	3,627	$	3,036	$	9,557	$	8,371

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Adjusted PTC	2022		2021		2022		2021
Income from continuing operations before taxes and equity in earnings of affiliates	$	617	$	586	$	721	$	465
Add: Net equity in earnings (losses) of affiliates	(26)		25		(54)		(15)
Less: Income from continuing operations before taxes, attributable to noncontrolling interests and redeemable stock of subsidiaries	(42)		(117)		(161)		(140)
Pre-tax contribution	549		494		506		310
Unrealized derivative and equity securities losses (gains)	(8)		(53)		(2)		24
Unrealized foreign currency losses	3		11		23		5
Disposition/acquisition losses (gains)	4		(33)		36		(277)
Impairment losses	17		18		497		1,121
Loss on extinguishment of debt	4		27		20		51
Net gains from early contract terminations at Angamos	—		(36)		—		(256)
Total Adjusted PTC	$	569	$	428	$	1,080	$	978

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Adjusted PTC	2022		2021		2022		2021
US and Utilities SBU	$	192	$	254	$	319	$	426
South America SBU	102		83		375		267
MCAC SBU	298		81		422		213
Eurasia SBU	47		45		154		144
Corporate and Other	(63)		(47)		(213)		(109)
Eliminations	(7)		12		23		37
Total Adjusted PTC	$	569	$	428	$	1,080	$	978

Total Assets	September 30, 2022		December 31, 2021
US and Utilities SBU	$	19,828	$	16,512
South America SBU	9,054		7,728
MCAC SBU	5,249		4,545
Eurasia SBU	2,708		3,466
Corporate and Other	936		712
Total Assets	$	37,775	$	32,963

XML

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

_______________________________

(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.

XML

Other Income and Expense

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

OTHER INCOME AND EXPENSE

Other income generally includes gains on insurance recoveries in excess of property damage, gains on asset sales and liability extinguishments, favorable judgments on contingencies, allowance for funds used during construction, and other income from miscellaneous transactions. Other expense generally includes losses on asset sales and dispositions, losses on legal contingencies, defined benefit plan non-service costs, and losses from other miscellaneous transactions. The components are summarized as follows (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Other Income	Gain on remeasurement of investment (1)	$	—	$	—	$	26	$	—
	Insurance proceeds (2)	—		—		16		—
	AFUDC (US Utilities)	4		2		9		6
	Legal settlements	—		—		6		—
	Gain on acquired customer contracts	—		—		5		—
	Gain on remeasurement of contingent consideration (3)	—		32		3		32
	Gain on remeasurement to acquisition-date fair value (4)	—		8		—		220
	Other	—		6		15		16
	Total other income	$	4	$	48	$	80	$	274
Other Expense	Allowance for lease receivable (5)	$	—	$	—	$	20	$	—
	Loss on sale and disposal of assets	—		6		9		13
	Loss on commencement of sales-type leases (6)	—		—		—		13
	Legal contingencies and settlements	8		2		8		2
	Other	2		4		14		4
	Total other expense	$	10	$	12	$	51	$	32

_____________________________

(1)    Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative.

(2)    Primarily related to insurance recoveries associated with property damage at TermoAndes.

(3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information.

(4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information.

(5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

(6)     Related to a loss recognized at commencement of a sales-type lease at AES Renewable Holdings. See Note 9—Leases for further information.

XML

Asset Impairment Expense

9 Months Ended

Sep. 30, 2022

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

ASSET IMPAIRMENT EXPENSE

ASSET IMPAIRMENT EXPENSE

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Maritza	$	—	$	—	$	468	$	—
Jordan	51		—		51		—
Ventanas 3 & 4	—		—		—		649
Puerto Rico	—		—		—		475
Angamos	—		—		—		155
Mountain View I & II	—		—		—		67
Estrella del Mar I	—		11		—		11
Other	(1)		18		14		17
Total	$	50	$	29	$	533	$	1,374

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million and as of September 30, 2022, the generation plants were classified as held-for-sale. Due to the delay in closing the transaction, the carrying amount of the asset group in subsequent periods exceeded the agreed-upon sales price and an impairment of $51 million was recorded as of September 30, 2022. See Note 17—Held-for-Sale and Dispositions for further information. Jordan is reported in the Eurasia SBU reportable segment.

Maritza — In May 2022, the Council for the European Union approved Bulgaria’s National Recovery and Resilience plan which commits the country to cease generating electricity from coal beyond 2038. As this plan is expected to prohibit the Company from operating the Maritza coal-fired plant through its estimated useful life, it was determined that an indicator of impairment had occurred. The Company reassessed the useful life of the facility and performed an impairment analysis as of April 30, 2022, in which it was determined that the carrying amount of the asset group was not recoverable. The Maritza asset group was determined to have a fair value of $452 million using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $468 million. Maritza is reported in the Eurasia SBU reportable segment.

Ventanas and Angamos — In July 2021, AES Andes entered into an agreement committing to accelerate the retirement of the Ventanas 3, Ventanas 4, Angamos 1, and Angamos 2 coal-fired plants in Chile in order to further advance its decarbonization strategy. Due to these strategic developments, the Company performed impairment analyses as of June 30, 2021, and determined that the carrying amounts of the asset groups were not recoverable. The Ventanas 3 & 4 and Angamos asset groups were determined to have fair values of $12 million and $86 million, respectively, using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $649 million and $155 million, respectively. Ventanas and Angamos are reported in the South America SBU reportable segment.

Mountain View I & II — In April 2021, the Company approved plans to execute a repowering project for the Mountain View I & II wind facility and signed two new PPAs for the energy and capacity related to the repowered asset. As the repowering will result in decommissioning the majority of the existing wind turbines in advance of their depreciable lives, the execution of the new PPAs was identified as an impairment indicator. The asset group was determined to have a fair value of $11 million using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $67 million. Mountain View I & II is reported in the US and Utilities SBU reportable segment.

Puerto Rico — New factors arose in the first quarter of 2021 associated with the economic costs and operational and reputational risks of disposal of coal combustion residuals off island. In addition, new legislative initiatives surrounding the prohibition of coal generation assets in Puerto Rico were introduced. Collectively, these factors along with management’s decision on how to best achieve our stated decarbonization goals resulted in an indicator of impairment at our asset group in Puerto Rico. As such, management performed a recoverability test in accordance with ASC 360 and concluded that Puerto Rico’s undiscounted cash flows did not exceed the carrying value of the asset group. The fair value of the asset group was determined to be $73 million, resulting in pre-tax impairment expense of $475 million. Puerto Rico is reported in the US and Utilities SBU reportable segment.

Estrella del Mar I — In August 2020, the Estrella del Mar I power barge was disconnected from the Panama grid. Upon disconnection, the Company concluded that the barge was no longer part of the AES Panama asset group and performed an impairment analysis. The Company determined that the carrying amount of the asset was not recoverable and recognized asset impairment expense of $30 million. In September 2021, the Company recognized additional asset impairment expense of $11 million due to a change in the estimated market value of the power barge. Prior to its sale in October 2021, Estrella del Mar I was reported in the MCAC SBU reportable segment.

XML

Income Taxes (Notes)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The Company’s provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rates for the three and nine months ended September 30, 2022 were 24% and 26%, respectively. The effective tax rates for the three and nine months ended September 30, 2021 were 22% and 16%, respectively. The difference between the Company’s effective tax rates for the 2022 and 2021 periods and the U.S. statutory tax rate of 21% related primarily to U.S. taxes on foreign earnings, foreign tax rate differentials, the impacts of foreign currency fluctuations at certain foreign subsidiaries, nondeductible expenses, and valuation allowance.

For the nine months ended September 30, 2022, the Company recorded discrete tax benefit of approximately $19 million resulting from foreign currency fluctuations at certain Argentine businesses.

For the three and nine months ended September 30, 2021, the Company recorded discrete tax benefit of approximately $96 million ($44 million net of NCI) associated with the release of valuation allowance at one of our Brazilian subsidiaries.

XML

Held-for-Sale and Dispositions (Notes)

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

Mong Duong — In December 2020, the Company entered into an agreement to sell its entire 51% ownership interest in Mong Duong, a coal-fired plant in Vietnam, and 51% equity interest in Mong Duong Finance Holdings B.V, an SPV accounted for as an equity affiliate. The sale is subject to regulatory approval and is expected to close in the second half of 2023. As of September 30, 2022, the Mong Duong plant and SPV were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plant and SPV held-for-sale as of September 30, 2022 was $570 million. Mong Duong is reported in the Eurasia SBU reportable segment.

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million. The closing of the transaction was delayed by an extended lender approval process triggered by a restructuring in the buyer’s group. The Company and the buyer continue to work closely with the lenders to achieve closing in the second half of 2022. After completion of the sale, the Company will retain a 10% ownership interest in Amman East and IPP4, which will be accounted for as an equity method investment. As of September 30, 2022, the generation plants were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plants held-for-sale as of September 30, 2022 was $174 million. Jordan is reported in the Eurasia SBU reportable segment.

Excluding any impairment charges, pre-tax income (loss) attributable to AES of businesses held-for-sale as of September 30, 2022 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Mong Duong	$	11	$	12	$	52	$	42
Jordan	(13)		5		(2)		15
Total	$	(2)	$	17	$	50	$	57

Dispositions

AES Tietê Inova Soluções — In June 2021, the Company completed the sale of its ownership in AES Inova Soluções, an investment platform in distributed solar generation, for $20 million, resulting in a pre-tax loss on sale of $1 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, AES Tietê Inova Soluções was reported in the South America SBU reportable segment.

Itabo — In April 2021, the Company completed the sale of its 43% ownership interest in Itabo, a coal-fired plant and gas turbine in Dominican Republic, for $88 million, resulting in a pre-tax gain on sale of $4 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Itabo was reported in the MCAC SBU reportable segment.

XML

Acquisitions

9 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

Acquisitions

. ACQUISITIONS

Agua Clara — On June 17, 2022, the Company, through its subsidiaries AES Dominicana Renewable Energy and AES Andres DR, S.A., acquired 100% of the equity interests in Agua Clara, S.A.S., a wind project, for consideration of $98 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Agua Clara is not a VIE, any difference between the fair value of the assets and consideration transferred was allocated to PP&E on a relative fair value basis. Agua Clara is reported in the MCAC SBU reportable segment.

Tunica Windpower, LLC — On June 17, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Tunica Windpower, LLC. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $22 million, including contingent consideration of $7 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Tunica Windpower is reported in the US and Utilities SBU reportable segment.

Windsor PV1, LLC — On May 27, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Windsor PV1, LLC, an early development-stage solar project. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $17 million, including contingent consideration of $5 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Windsor is reported in the US and Utilities SBU reportable segment.

Community Energy — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Community Energy, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. Community Energy is reported in the US and Utilities SBU reportable segment.

New York Wind — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Cogentrix Valcour Intermediate Holdings, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. New York Wind is reported in the US and Utilities SBU reportable segment.

Serra Verde Wind Complex — On July 19, 2021, AES Brasil completed the acquisition of the Serra Verde Wind Complex for $18 million, subject to customary working capital adjustments, of which $6 million was paid in cash and the remaining $12 million will be paid in two annual installments ending on July 19, 2023. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business; therefore, the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Serra Verde is reported in the South America SBU.

Cajuina Wind Complex — On May 21, 2021, AES Brasil completed the acquisition of the Cajuina Wind Complex phase I for $22 million, subject to customary working capital adjustments. On July 29, 2021, AES Brasil completed the acquisition of the Cajuína Wind Complex phase II for $24 million, subject to customary working capital adjustments, including $3 million of contingent consideration. The Company made initial cash payments of $6 million and the remaining balance will be paid in three annual installments ending on March 31, 2024 and on July 29, 2024, respectively. These transactions were accounted for as asset acquisitions of variable interest entities that did not meet the definition of a business; therefore the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Cajuina is reported in the South America SBU.

Cubico Wind Complex — On April 30, 2021, AES Brasil completed the acquisition of the Cubico Wind Complex for $109 million, subject to customary working capital adjustments. The transaction was accounted for as an asset acquisition; therefore the consideration transferred, plus transaction costs, were allocated to the individual assets acquired and liabilities assumed based on their relative fair values. Cubico is reported in the South America SBU.

AES Clean Energy Development — On February 1, 2021, the Company substantially completed the merger of the sPower and AES Renewable Holdings development platforms to form AES Clean Energy Development, which will serve as the development vehicle for all future renewable projects in the U.S. As part of the transaction, AES acquired an additional 25% ownership interest in the sPower development platform from AIMCo, our existing partner in the sPower equity method investment, in exchange for a 25% ownership interest in specifically identified development entities of AES Renewable Holdings, certain future exit rights in the new partnership, and $7 million of cash.

The sPower development platform was carved-out of AES’ existing equity method investment. AES’ basis in the portion of assets transferred was $102 million, and the contribution to AES Clean Energy Development resulted in a corresponding decrease in the carrying value of the sPower investment. See Note 6—Investments in and Advances to Affiliates for further information.

During the first quarter of 2021, the sPower development assets transferred were remeasured at their acquisition-date preliminary fair values, resulting in the recognition of a $36 million gain, recorded in Other income on the Condensed Consolidated Statement of Operations. The Company recorded $81 million in Goodwill as of the acquisition date, representing the difference between the fair value of the consideration transferred, the noncontrolling interest in the sPower development platform, and the acquisition-date fair value of the Company’s previously held equity interest and the fair value of the identifiable assets acquired and liabilities assumed.

During the second quarter of 2021, the Company recorded measurement period adjustments as result of additional facts and circumstances that existed as of the date of the acquisition but were not yet known as of the time of the valuation performed in the first quarter of 2021. These measurement period adjustments primarily related to higher expected developer profits and a higher growth rate, reflective of additional information that became available regarding market participants’ views of the value of early-stage renewable development projects as of the date of acquisition. As a result, the estimated acquisition-date carrying value and fair values of the sPower development assets transferred were increased, which resulted in the recognition of an additional $178 million gain, for an updated gain of $214 million. Furthermore, the estimated goodwill as of the acquisition date was reduced to the estimated goodwill as of the acquisition date was reduced to $45 million, as a result of adjustments to the fair value of the consideration paid and updates to the fair values of separately identifiable intangible assets. The Company finalized the purchase price allocation in the third quarter of 2021, which did not result in any material measurement period adjustments.

Subsequent to the closing of the transaction, AES holds a 75% ownership interest in AES Clean Energy Development. AIMCo holds the remaining 25% minority interest along with certain partnership rights, though currently not in effect, that would enable AIMCo to exit in the future. AIMCo’s minority interest is recorded as temporary equity in Redeemable stock of subsidiaries on the Condensed Consolidated Balance Sheet. See Note 10—Redeemable Stock of Subsidiaries for further information. AES Clean Energy Development is reported in the US and Utilities SBU reportable segment.

Great Cove Solar— On January 25, 2021, and May 3, 2021, AES Clean Energy Development completed the acquisitions of Great Cove I and II, respectively. The fair value of the initial consideration paid to acquire Great Cove I and Great Cove II was $13 million and $24 million, which included contingent consideration liabilities of $6 million and $22 million, respectively. These acquisitions were accounted for as asset acquisitions of variable interest entities that did not meet the definition of a business; therefore, the assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration. Great Cove Solar is reported in the US and Utilities SBU reportable segment.

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and nine months ended September 30, 2022 and 2021, where income represents the numerator and weighted average shares represent the denominator.

Three Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	421	668	$	0.63	$	343	667	$	0.52
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		2	(0.01)
Equity units	—		40	(0.04)		1		41	(0.03)
DILUTED EARNINGS PER SHARE	$	421	711	$	0.59	$	344	711	$	0.48
Nine Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	357	668	$	0.53	$	219	666	$	0.32
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		3	—
Equity units	1		40	(0.03)		1		31	(0.01)
DILUTED EARNINGS PER SHARE	$	358	711	$	0.50	$	220	701	$	0.31

The calculation of diluted earnings per share excluded 2 million outstanding stock awards for the three and nine months ended September 30, 2022 and 1 million for the three and nine months ended September 30, 2021, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future. Due to the full retrospective adoption of ASU 2020-06, an additional 1 million potential shares of common stock related to the assumed share settlement of the Contract Adjustment Payments were included in diluted weighted-average shares outstanding for the three and nine months ended September 30, 2021.

As described in Note 11—Equity, the Company issued 10,430,500 Equity Units in March 2021 with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a 2024 Purchase Contract and a 10% undivided beneficial ownership interest in one share of Series A Preferred Stock. Prior to February 15, 2024, the Series A Preferred Stock may be converted at the option of the holder only in connection with a fundamental change. On and after February 15, 2024, the Series A Preferred Stock may be converted freely at the option of the holder. Upon conversion, the Company will deliver to the holder with respect to each share of Series A Preferred Stock being converted (i) a share of our Series B Preferred Stock, or, solely with respect to conversions in connection with a redemption, cash and (ii) shares of our common stock, if any, in respect of any conversion value in excess of the liquidation preference of the preferred stock being converted. The conversion rate was initially 31.5428 shares of common stock per one share of Series A Preferred Stock, which was equivalent to an initial conversion price of approximately $31.70 per share of common stock. As of September 30, 2022, due to customary anti-dilution provisions, the conversion rate was 31.5756, equivalent to a conversion price of approximately $31.67 per share of common stock. The Series A Preferred Stock and the 2024 Purchase Contracts are being accounted for as one unit of account. In calculating diluted EPS, the Company has applied the if-converted method to determine the impact of the forward purchase feature and considered if there are incremental shares that should be included related to the Series A Preferred conversion value.

XML

Risks and Uncertainties (Notes)

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

Unusual Risks and Uncertainties [Table Text Block]

RISKS AND UNCERTAINTIES

COVID-19 Pandemic — The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition, and cash flows in future periods.

Goodwill — The Company considers a reporting unit at risk of impairment when its fair value does not exceed its carrying amount by more than 10%. During the annual goodwill impairment test performed as of October 1, 2021, the Company had no reporting units considered to be “at risk,” as the fair value of all reporting units exceeded their carrying amounts by more than 10%. The Company monitors its reporting units for interim impairment indicators, and has determined that no triggering events requiring a reassessment of goodwill impairment exist as of September 30, 2022.

However, the Company has seen degradation in certain inputs to the discount rate used in our goodwill impairment analysis, such as increasing interest rates and country risk premiums in certain markets, since the date

of our last impairment test. These changes to the inputs of our discount rate may negatively impact our annual goodwill impairment test as of October 1, 2022. The analysis of the cash flows to which these inputs are applied is currently in process. It is currently not known if these inputs to the discount rate are significant enough to result in an impairment of goodwill.

Should the fair value of any of the Company’s reporting units fall below its carrying amount as a result of these inputs or other changes such as reduced operating performance, market declines, changes in the discount rate, regulatory changes, or other adverse conditions, goodwill impairment charges may be necessary in future periods.

Alto Maipo — On August 27, 2021, Alto Maipo updated its creditors with respect to the construction budget and long-term business plan for the project, which considers different scenarios for spot prices, decarbonization initiatives, and hydrological conditions, among other significant variables. Under some of these scenarios, Alto Maipo may experience reduced future cash flows, which would limit its ability to repay debt. Alto Maipo’s management initiated negotiations with its creditors to restructure its obligations and achieve a sustainable long-term capital structure for Alto Maipo. On November 17, 2021, Alto Maipo SpA commenced a reorganization proceeding in accordance with Chapter 11 of the U.S. Bankruptcy Code, through a voluntary petition. Consequently, after the Chapter 11 filing, the Company is no longer considered to have control over Alto Maipo, which resulted in its deconsolidation. The Company recognized an after-tax loss of approximately $1.2 billion, net of noncontrolling interests, in the Consolidated Statement of Operations in the fourth quarter of 2021, associated with the loss of control attributable to the former controlling interest.

On May 26, 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore will not consolidate this entity. The Company has elected the fair value option to account for its investment in Alto Maipo. If Alto Maipo is unable to meet its obligations under the restructured arrangements as they come due, the creditors may enforce their rights under the credit agreements. These finance agreements are non-recourse with respect to The AES Corporation.

XML

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS Southland Energy — On November 3, 2022, the Company signed an agreement to sell an additional 14.9% of its ownership interest in the Southland repowering assets (“Southland Energy”). Once this sale is completed, AES will hold 50.1% of Southland Energy’s interest. The transaction is expected to close during the fourth quarter of 2022 and is expected to be accounted for as an equity transaction, with no gain or loss recognized in the financial statements. Southland Energy is expected to continue being consolidated by the Company within the US and Utilities SBU reportable segment.

XML

Financial Statement Presentation (Policies)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

Consolidation — In this Quarterly Report, the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity, including its subsidiaries and affiliates. The terms “The AES Corporation” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, VIEs in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting, except for our investment in Alto Maipo, for which we have elected the fair value option as permitted under ASC 825. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation and Significant Accounting Policies [Text Block]

Interim Financial Presentation — The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of expected results for the year ending December 31, 2022. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2021 audited consolidated financial statements and notes thereto, which are included in the 2021 Form 10-K filed with the SEC on February 28, 2022 (the “2021 Form 10-K”).

Reclassifications — To comply with newly adopted accounting standards, certain prior period adjustments in the consolidated financial statements have been reclassified to conform to the current presentation. The beneficial conversion feature associated with the Equity Units was reclassified from Additional paid-in capital to Preferred stock in the Consolidated Balance Sheet for the year ended December 31, 2021. See further detail in the new accounting pronouncements discussion.

XML

Contingencies and Commitments Contingencies and Commitments (Policies)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies, Policy [Policy Text Block]	The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.

XML

Leases (Policies)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Early Termination [Policy Text Block]	The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery.
Separation of Lease and Nonlease Components [Policy Text Block]	Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease.

XML

Segments Segments (Policies)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally and is mainly organized by geographic regions, which provides a socio-political-economic understanding of our business. The management reporting structure is organized by four SBUs led by our President and Chief Executive Officer: US and Utilities, South America, MCAC, and Eurasia SBUs. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. In January 2022, we internally announced a reorganization as a part of our ongoing strategy to align our business to meet our customers' needs and deliver on our major strategic objectives. The Company performed an assessment in accordance with ASC 280 and determined there were no changes to its operating or reportable segments.

Corporate and Other — Included in “Corporate and Other” are the results of the AES self-insurance company and certain equity affiliates, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

The Company uses Adjusted PTC as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities. The Company has concluded that Adjusted PTC better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company’s results.

Revenue and Adjusted PTC are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees, and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

XML

Earnings Per Share EPS Policy (Policies)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share, Policy [Policy Text Block]	Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

XML

Financial Statement Presentation New Accounting Standards (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents [Table Text Block]

Cash, Cash Equivalents, and Restricted Cash — The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheet that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows (in millions):

	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	1,553	$	943
Restricted cash	314		304
Debt service reserves and other deposits	167		237
Cash, Cash Equivalents, and Restricted Cash	$	2,034	$	1,484

New Accounting Pronouncements Adopted

New Accounting Pronouncements Adopted in 2022 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

New Accounting Standards Adopted
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-05, Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments	The amendments in this update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (a) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3, (b) The lessor would have otherwise recognized a day-one loss. This update could be applied either (1) retrospectively to leases that commenced or were modified on or after the adoption of Update 2016-02 or (2) prospectively to leases that commence or are modified on or after the date that an entity first applies the amendments.	January 1, 2022	The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements.
2020-06, Debt - Debt with conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Equity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity’s Own Equity	The amendments in this update affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation.	January 1, 2022	The Company adopted this standard on a fully retrospective basis and its adoption resulted in a $13 million increase to Preferred Stock and a corresponding decrease to Additional paid-in capital. No impact to Earnings per Share amounts reported in 2021 or 2022.
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022	The Company is implementing the reference rate reform and does not expect these amendments to have a material impact on the financial statements.

New Accounting Pronouncements Issued

New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.

New Accounting Standards Issued But Not Yet Effective
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This update is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.
2022-04,Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations	This update is to provide additional information and disclosures about an entity’s use of supplier finance programs to see how these programs will affect an entity’s working capital, liquidity, and cash flows. Entities that use supplier finance programs as the buyer party should disclose (1) the key terms of the payment terms and assets pledged as security or other forms of guarantees provided and (2) the unpaid amount outstanding, a description of where those obligations are presented on the balance sheet, and a rollforward of those obligations during the annual period.	For fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.

XML

Inventory (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventory Balance By Type

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
Fuel and other raw materials	$	689	$	366
Spare parts and supplies	309		238
Total	$	998	$	604

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	639	$	—	$	639	$	—	$	199	$	—	$	199
Government debt securities	—		4		—		4		—		—		—		—
Total debt securities	—		643		—		643		—		199		—		199
EQUITY SECURITIES:
Mutual funds	26		10		—		36		31		13		—		44
Total equity securities	26		10		—		36		31		13		—		44
DERIVATIVES:
Interest rate derivatives	—		476		—		476		—		51		2		53
Cross-currency derivatives	—		—		—		—		—		5		—		5
Foreign currency derivatives	—		35		70		105		—		29		108		137
Commodity derivatives	—		225		18		243		—		32		6		38
Total derivatives — assets	—		736		88		824		—		117		116		233
TOTAL ASSETS	$	26	$	1,389	$	88	$	1,503	$	31	$	329	$	116	$	476
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	1	$	1	$	2	$	—	$	286	$	8	$	294
Cross-currency derivatives	—		36		—		36		—		11		—		11
Foreign currency derivatives	—		34		—		34		—		35		—		35
Commodity derivatives	—		239		16		255		—		37		7		44
Total derivatives — liabilities	—		310		17		327		—		369		15		384
TOTAL LIABILITIES	$	—	$	310	$	17	$	327	$	—	$	369	$	15	$	384

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,
	2022		2021		2022		2021
Gross proceeds from sale of available-for-sale securities	$	318	$	207	$	665	$	507

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

The following tables present a reconciliation of net derivative 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, 2022 and 2021 (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.

Three Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	1	$	—	$	50	$	37	$	88
Total realized and unrealized gains (losses):
Included in earnings	1		—		22		(1)		22
Included in other comprehensive income — derivative activity	(1)		—		7		(14)		(8)
Included in regulatory (assets) liabilities	—		—		—		(3)		(3)
Settlements	—		—		(9)		—		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		(2)		(2)
Transfers of (assets) liabilities, net out of Level 3	(2)		—		—		(15)		(17)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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)	$	13
Three Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at July 1	$	(192)	$	(32)	$	97	$	15	$	(112)
Total realized and unrealized gains (losses):
Included in earnings	12		20		22		(1)		53
Included in other comprehensive income — derivative activity	(14)		—		7		(15)		(22)
Included in other comprehensive income — foreign currency translation activity	—		2		—		—		2
Included in regulatory (assets) liabilities	—		—		—		(2)		(2)
Settlements	12		—		(9)		1		4
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	—	$	4	$	15	$	(1)	$	18

Nine Months Ended September 30, 2022	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(6)	$	—	$	108	$	(1)	$	101
Total realized and unrealized gains (losses):
Included in earnings	4		—		(22)		(4)		(22)
Included in other comprehensive income — derivative activity	13		—		(7)		(7)		(1)
Included in regulatory (assets) liabilities	—		—		—		13		13
Settlements	(1)		—		(9)		1		(9)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(11)		—		—		—		(11)
Balance at September 30	$	(1)	$	—	$	70	$	2	$	71
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	$	3	$	—	$	(44)	$	1	$	(40)
Nine Months Ended September 30, 2021	Interest Rate		Cross Currency		Foreign Currency		Commodity		Total
Balance at January 1	$	(236)	$	(2)	$	146	$	2	$	(90)
Total realized and unrealized gains (losses):
Included in earnings	13		(13)		(1)		(1)		(2)
Included in other comprehensive income — derivative activity	6		—		(1)		(3)		2
Included in other comprehensive income — foreign currency translation activity	—		4		—		—		4
Included in regulatory (assets) liabilities	—		—		—		1		1
Settlements	35		1		(27)		(1)		8
Transfers of assets (liabilities), net into Level 3	(4)		—		—		—		(4)
Transfers of (assets) liabilities, net out of Level 3	96		—		—		—		96
Balance at September 30	$	(90)	$	(10)	$	117	$	(2)	$	15
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	$	1	$	4	$	(29)	$	(1)	$	(25)

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, 2022 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiaries’ credit spreads	1% - 2.2% (2.1%)
Foreign currency:
Argentine peso	70		Argentine peso to U.S. dollar currency exchange rate after one year	272 - 748 (498)
Commodity:
Other	2
Total	$	71

Fair value hierarchy for nonrecurring measurements table

The following table summarizes our major categories of assets measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2022				Level 1		Level 2		Level 3
Long-lived assets held and used:
Maritza	4/30/2022	$	920	$	—	$	—	$	452	$	468
Held-for-sale businesses: (2)
Jordan (3)	9/30/2022	$	216	$	—	$	170	$	—	$	51
	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Nine Months Ended September 30, 2021				Level 1		Level 2		Level 3
Long-lived assets held and used:
Puerto Rico	3/31/2021	$	548	$	—	$	—	$	73	$	475
Mountain View I & II	4/30/2021	78		—		—		11		67
Ventanas 3 & 4	6/30/2021	661		—		—		12		649
Angamos	6/30/2021	241		—		—		86		155
Dispositions: (2)
Estrella del Mar I	9/30/2021	$	17	$	—	$	6	$	—	$	11

_____________________________

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, 2022 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Maritza	$	452	Discounted cash flow	Annual revenue growth	(66)% to 11% (-11%)
				Annual variable margin	(66)% to 23% (-1%)
				Weighted-average cost of capital	20% to 25% (21%)
Total	$	452

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, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	92	$	132	$	—	$	—	$	132
Liabilities:	Non-recourse debt	17,358		16,368		—		14,870		1,498
	Recourse debt	4,668		4,175		—		4,175		—

		December 31, 2021
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	55	$	117	$	—	$	—	$	117
Liabilities:	Non-recourse debt	14,811		16,091		—		16,065		26
	Recourse debt	3,754		3,818		—		3,818		—

_____________________________

(1)These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $2 million as of September 30, 2022 and December 31, 2021.

XML

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022, 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 Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	6,464	2059
Cross-currency swaps (Brazilian real)	254		2026
Foreign Currency:
Colombian peso	120		2024
Euro	54		2024
Mexican peso	53		2023
Brazilian real	36		2024
Chilean peso	27		2024
Argentine peso	7		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	106	2029
Power (in MWhs)	22	2040
Coal (in Tons or Metric Tons)	6	2027

Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table

The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	September 30, 2022						December 31, 2021
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	475	$	1	$	476	$	53	$	—	$	53
Cross-currency derivatives	—		—		—		5		—		5
Foreign currency derivatives	20		85		105		28		109		137
Commodity derivatives	19		224		243		6		32		38
Total assets	$	514	$	310	$	824	$	92	$	141	$	233
Liabilities
Interest rate derivatives	$	2	$	—	$	2	$	288	$	6	$	294
Cross-currency derivatives	36		—		36		11		—		11
Foreign currency derivatives	22		12		34		23		12		35
Commodity derivatives	14		241		255		11		33		44
Total liabilities	$	74	$	253	$	327	$	333	$	51	$	384

	September 30, 2022				December 31, 2021
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	284	$	157	$	85	$	83
Noncurrent	540		170		148		301
Total	$	824	$	327	$	233	$	384

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 related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	238	$	10	$	865	$	97
Cross-currency derivatives	—		(14)		—		(11)
Foreign currency derivatives	8		(7)		(4)		(27)
Commodity derivatives	5		3		66		20
Total	$	251	$	(8)	$	927	$	79
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(11)	$	(24)	$	(61)	$	(76)
Cross-currency derivatives	—		(13)		—		(15)
Foreign currency derivatives	2		(7)		2		(12)
Commodity derivatives	(4)		4		(5)		1
Total	$	(13)	$	(40)	$	(64)	$	(102)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	6	$	(22)	$	(29)	$	(10)
Hedged items	—		27		22		8
Total	$	6	$	5	$	(7)	$	(2)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	—	$	(16)	$	—
Gain reclassified from AOCL to earnings due to change in forecast	$	2	$	—	$	17	$	—
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	1	$	(1)	$	4	$	104
Foreign currency derivatives	35		28		20		24
Commodity derivatives and other	3		17		20		(64)
Total	$	39	$	44	$	44	$	64

XML

Financing Receivables (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Financing Receivables Table

The following table presents financing receivables by country as of the dates indicated (in millions):

	September 30, 2022						December 31, 2021
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
U.S.	$	49	$	—	$	49	$	—	$	—	$	—
Chile	17		—		17		17		—		17
Argentina	6		—		6		11		1		10
Other	22		—		22		30		—		30
Total	$	94	$	—	$	94	$	58	$	1	$	57

XML

Investments In and Advances To Affiliates (Tables)

9 Months Ended

Sep. 30, 2022

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investments In and Advances to Affiliates Financial Information

The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates (1)				Majority-Owned Unconsolidated Subsidiaries
Nine Months Ended September 30,	2022		2021		2022		2021
Revenue	$	1,218	$	866	$	1	$	1
Operating margin (loss)	(322)		45		—		—
Net loss	(410)		(108)		—		(4)

_______________________________

(1)         As of July 1, 2021, AES began to account for its investment in Fluence quarterly, on a three-month lag. This shift in timing is necessary due to the nature of the entity subsequent to its IPO.

XML

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Non-recourse debt [Table Text Block]

During the nine months ended September 30, 2022, the Company’s subsidiaries had the following significant debt transactions:

Subsidiary	Transaction Period	Issuances		Repayments
AES Andes (1)	Q1, Q2, Q3	$	577	$	(95)
AES Brasil	Q1, Q2	469		(201)
United Kingdom	Q1	710		(350)
Netherlands/Panama	Q1	500		—
El Salvador	Q2	348		(345)
AES Indiana	Q2	200		—
AES Ohio	Q2	140		—
AES Clean Energy	Q2	139		(119)
AES Renewable Holdings	Q3	139		—
AES Dominicana Renewable Energy	Q3	120		—

_____________________________(1)Issuances relate to AES Andes S.A. and Chivor.

Debt In Default

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of September 30, 2022. Due to the defaults, these amounts are included in the current portion of non-recourse debt:

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets
AES Puerto Rico	Covenant	$	170	$	(181)
AES Jordan PSC (1)	Covenant	69		76
AES Ilumina (Puerto Rico)	Covenant	27		27
AES Jordan Solar	Covenant	7		11
Total		$	273

_____________________________

(1)Classified as current held-for-sale liability on the Condensed Consolidated Balance Sheets.

XML

Contingencies and Commitments (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Contingent Contractual Obligations [Table Text Block]

The following table summarizes the Parent Company’s contingent contractual obligations as of September 30, 2022. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,282	81	$0 — 400
Letters of credit under the unsecured credit facilities	156		44	$0 — 36
Letters of credit under the revolving credit facility	26		12	$0 — 15
Surety bonds	2		2	$1
Total	$	2,466	139

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Operating Lease, Lease Income [Table Text Block]

The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Revenue	2022		2021		2022		2021
Total lease revenue	$	134	$	193	$	408	$	454
Less: Variable lease revenue	(14)		(24)		(37)		(63)
Total Non-variable lease revenue	$	120	$	169	$	371	$	391

Sales-type Lease, Lease Income [Table Text Block]

The following table shows the future lease receipts as of September 30, 2022 for the remainder of 2022 through 2026 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2022	$	6	$	121
2023	24		372
2024	24		373
2025	24		374
2026	24		273
Thereafter	361		723
Total	$	463	$	2,236
Less: Imputed interest	(263)
Present value of total lease receipts	$	200

Property, Plant, and Equipment, Lessor Asset under Operating Lease

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment, net for the periods indicated (in millions):

Property, Plant and Equipment, Net	September 30, 2022		December 31, 2021
Gross assets	$	1,701	$	2,423
Less: Accumulated depreciation	(398)		(765)
Net assets	$	1,303	$	1,658

XML

Redeemable Stocks of Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2022

Redeemable Stock of Subsidiaries [Abstract]

Temporary Equity [Table Text Block]

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	September 30, 2022		December 31, 2021
IPALCO common stock	$	700	$	700
AES Clean Energy Development common stock	424		497
AES Indiana preferred stock	60		60
Potengi common and preferred stock	17		—
Total redeemable stock of subsidiaries	$	1,201	$	1,257

XML

Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Components Of Accumulated Other Comprehensive Income

The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2022 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,734)	$	(456)	$	(30)	$	(2,220)
Other comprehensive income (loss) before reclassifications	(90)		653		—		563
Amount reclassified to earnings	—		41		1		42
Other comprehensive income (loss)	(90)		694		1		605
Reclassification from NCI due to share repurchases	(53)		(20)		(3)		(76)
Balance at the end of the period	$	(1,877)	$	218	$	(32)	$	(1,691)

Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Income

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign currency translation adjustment, net
	Gain on disposal and sale of business interests	$	—	$	—	$	—	$	(3)
	Net income attributable to The AES Corporation	$	—	$	—	$	—	$	(3)
Derivative gains (losses), net
	Non-regulated revenue	$	—	$	(1)	$	(1)	$	(1)
	Non-regulated cost of sales	(5)		2		(7)		(2)
	Interest expense	(9)		(33)		(42)		(62)
	Asset impairment expense	—		—		(16)		(13)
	Foreign currency transaction gains (losses)	2		(7)		2		(12)
	Income from continuing operations before taxes and equity in earnings of affiliates	(12)		(39)		(64)		(90)
	Income tax expense	(1)		10		12		23
	Net equity in earnings (losses) of affiliates	(1)		(1)		—		(12)
	Net income	(14)		(30)		(52)		(79)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	3		9		11		22
	Net income attributable to The AES Corporation	$	(11)	$	(21)	$	(41)	$	(57)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(2)	$	(1)	$	(3)
	Non-regulated cost of sales	—		(1)		—		(1)
	Other expense	(2)		—		(2)		(1)
	Income from continuing operations before taxes and equity in earnings of affiliates	(2)		(3)		(3)		(5)
	Income tax expense	1		(1)		1		—
	Net income	(1)		(4)		(2)		(5)
	Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	1		2		1		2
	Net income attributable to The AES Corporation	$	—	$	(2)	$	(1)	$	(3)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(11)	$	(23)	$	(42)	$	(63)

XML

Segments (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Revenue By Segment Table

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2022		2021		2022		2021
US and Utilities SBU	$	1,506	$	1,327	$	3,820	$	3,248
South America SBU	926		896		2,616		2,744
MCAC SBU	940		559		2,192		1,584
Eurasia SBU	261		257		947		804
Corporate and Other	24		21		83		82
Eliminations	(30)		(24)		(101)		(91)
Total Revenue	$	3,627	$	3,036	$	9,557	$	8,371

XML

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

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

_______________________________

(1)         Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

XML

Other Income and Expense (Tables)

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Schedule of other Income and other expense [Table Text Block]

The components are summarized as follows (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Other Income	Gain on remeasurement of investment (1)	$	—	$	—	$	26	$	—
	Insurance proceeds (2)	—		—		16		—
	AFUDC (US Utilities)	4		2		9		6
	Legal settlements	—		—		6		—
	Gain on acquired customer contracts	—		—		5		—
	Gain on remeasurement of contingent consideration (3)	—		32		3		32
	Gain on remeasurement to acquisition-date fair value (4)	—		8		—		220
	Other	—		6		15		16
	Total other income	$	4	$	48	$	80	$	274
Other Expense	Allowance for lease receivable (5)	$	—	$	—	$	20	$	—
	Loss on sale and disposal of assets	—		6		9		13
	Loss on commencement of sales-type leases (6)	—		—		—		13
	Legal contingencies and settlements	8		2		8		2
	Other	2		4		14		4
	Total other expense	$	10	$	12	$	51	$	32

_____________________________

(1)    Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative.

(2)    Primarily related to insurance recoveries associated with property damage at TermoAndes.

(3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information.

(4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information.

(5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

(6)     Related to a loss recognized at commencement of a sales-type lease at AES Renewable Holdings. See Note 9—Leases for further information.

XML

Asset Impairment Expense (Tables)

9 Months Ended

Sep. 30, 2022

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block]

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Maritza	$	—	$	—	$	468	$	—
Jordan	51		—		51		—
Ventanas 3 & 4	—		—		—		649
Puerto Rico	—		—		—		475
Angamos	—		—		—		155
Mountain View I & II	—		—		—		67
Estrella del Mar I	—		11		—		11
Other	(1)		18		14		17
Total	$	50	$	29	$	533	$	1,374

XML

Held-for-Sale and Dispositions (Tables)

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Disclosure of Long Lived Assets Held-for-sale [Table Text Block]

Excluding any impairment charges, pre-tax income (loss) attributable to AES of businesses held-for-sale as of September 30, 2022 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Mong Duong	$	11	$	12	$	52	$	42
Jordan	(13)		5		(2)		15
Total	$	(2)	$	17	$	50	$	57

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share Basic And Diluted Table

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and nine months ended September 30, 2022 and 2021, where income represents the numerator and weighted average shares represent the denominator.

Three Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	421	668	$	0.63	$	343	667	$	0.52
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		2	(0.01)
Equity units	—		40	(0.04)		1		41	(0.03)
DILUTED EARNINGS PER SHARE	$	421	711	$	0.59	$	344	711	$	0.48
Nine Months Ended September 30,	2022					2021
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	357	668	$	0.53	$	219	666	$	0.32
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		3	—
Equity units	1		40	(0.03)		1		31	(0.01)
DILUTED EARNINGS PER SHARE	$	358	711	$	0.50	$	220	701	$	0.31

XML

Financial Statement Presentation New Accounting Pronouncement Adopted (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jan. 01, 2022	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 1,553			$ 943
Restricted Cash and Cash Equivalents, Current	314			304
Debt service reserves and other deposits	167			237
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	2,034	$ 1,974		1,484	$ 1,827
Accounts Receivable, Allowance for Credit Loss, Current	5			5
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	49	8
Accounts Receivable, Allowance for Credit Loss, Writeoff	(15)	(8)
Financing Receivable, Allowance for Credit Loss, Recovery	(1)	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	(8)	(3)
Accounts and Financing Receivable, Allowance for Credit Loss	90	61		63	64
Allowance for Doubtful Accounts, Premiums and Other Receivables		2
Preferred Stock, Value, Issued	838	838		838
Additional Paid in Capital	6,818			7,106
Accounting Standards Update 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Preferred Stock, Value, Issued			$ 13
Additional Paid in Capital			$ 13
Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	3	8		3	11
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)		3
Accounts Receivable, Allowance for Credit Loss, Writeoff	(9)	(8)
Financing Receivable, Allowance for Credit Loss, Recovery	(2)	(2)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0	0
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease)	7
Mong Duong Subsidiary [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	29	31		30
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	0
Accounts Receivable, Allowance for Credit Loss, Writeoff	0
Financing Receivable, Allowance for Credit Loss, Recovery	(1)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0
Mong Duong Subsidiary [Member] | Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current					32
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)		0
Accounts Receivable, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Allowance for Credit Loss, Recovery		(1)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation		0
AES Argentina [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	37	22		23
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	22
Accounts Receivable, Allowance for Credit Loss, Writeoff	0
Financing Receivable, Allowance for Credit Loss, Recovery	0	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	(8)
AES Argentina [Member] | Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current					20
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)		5
Accounts Receivable, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation		(3)
Other Entity [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	1	0		7
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	0
Accounts Receivable, Allowance for Credit Loss, Writeoff	(6)
Financing Receivable, Allowance for Credit Loss, Recovery	0	(1)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0
AES Gilbert
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current				$ 0
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	20
Accounts Receivable, Allowance for Credit Loss, Writeoff	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss	$ 20
Other Subsidiaries [Member] | Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current					$ 1
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)		0
Accounts Receivable, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation		$ 0

XML

Inventory (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Fuel and other raw materials	$ 689	$ 366
Spare parts and supplies	309	238
Total	$ 998	$ 604

XML

Fair Value (Recurring Measurements) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ 71	$ 15	$ 71	$ 15	$ 88	$ 101	$ (112)	$ (90)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,503		1,503			476
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	327		327			384
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	22	53	(22)	(2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	4	(9)	8
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	(2)	(4)	0	(4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	17	96	11	96
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	13	18	(40)	(25)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(2)	13	1
Other Asset Impairment Charges	50	29	533	1,374
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	639		639			199
US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	4		4			0
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	643		643			199
Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	36		36			44
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	36		36			44
Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	476		476			53
Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			5
Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	105		105			137
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	243		243			38
Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	824		824			233
Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	(90)	(1)	(90)	1	(6)	(192)	(236)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	2		2			294
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	1	12	4	13
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	12	(1)	35
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	(4)	0	(4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	2	(96)	11
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	0	3	1
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				(96)
Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	0	(10)	0	(10)	0	0	(32)	(2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	36		36			11
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	0	20	0	(13)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	0	0	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	4	0	4
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	70	117	70	117	50	108	97	146
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	34		34			35
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	22	22	(22)	(1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	(9)	(9)	(27)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	14	15	(44)	(29)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	2	(2)	2	(2)	$ 37	(1)	$ 15	$ 2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	255		255			44
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	(1)	(1)	(4)	(1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	1	1	(1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	(2)	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	15	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(1)	(1)	1	(1)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(2)	13	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	26		26			31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	26		26			31
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	26		26			31
Level 1 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 1 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 1 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 1 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 1 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,389		1,389			329
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	310		310			369
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	639		639			199
Level 2 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	4		4			0
Level 2 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	643		643			199
Level 2 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	10		10			13
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	10		10			13
Level 2 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	476		476			51
Level 2 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			5
Level 2 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	35		35			29
Level 2 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	225		225			32
Level 2 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	736		736			117
Level 2 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	1		1			286
Level 2 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	36		36			11
Level 2 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	34		34			35
Level 2 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	239		239			37
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	88		88			116
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	17		17			15
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			2
Level 3 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0			0
Level 3 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	70		70			108
Level 3 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	18		18			6
Level 3 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	88		88			116
Level 3 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	1		1			8
Level 3 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 3 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0			0
Level 3 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	16		16			$ 7
Other comprehensive income - Derivative activity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(8)	(22)	(1)	2
Other comprehensive income - Derivative activity [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(1)	(14)	13	6
Other comprehensive income - Derivative activity [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0	0
Other comprehensive income - Derivative activity [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	7	7	(7)	(1)
Other comprehensive income - Derivative activity [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ (14)	(15)	$ (7)	$ (3)
Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		2
Other Comprehensive Income- Foreign currency translation activity [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Other Comprehensive Income- Foreign currency translation activity [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		2
Other Comprehensive Income- Foreign currency translation activity [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Other Comprehensive Income- Foreign currency translation activity [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		$ 0
Measurement Input, Entity Credit Risk [Member] | Minimum [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			1.00%
Measurement Input, Entity Credit Risk [Member] | Maximum [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			2.20%
Measurement Input, Entity Credit Risk [Member] | Weighted Average [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			2.10%

XML

Fair Value Investment in Marketable Securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Gain Loss On Marketable Securities
Gross proceeds from sales of AFS securities	$ 318	$ 207	$ 665	$ 507

XML

Fair Value (Level 3 Reconciliation) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ 71	$ 15	$ 71	$ 15	$ 88	$ 101	$ (112)	$ (90)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	22	53	(22)	(2)
Foreign currency translation adjustments, net of $0 income tax for all periods	(80)	(58)	(97)	(89)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(2)	13	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	4	(9)	8
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	2	4	0	4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	17	96	11	96
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	13	18	(40)	(25)
Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(8)	(22)	(1)	2
Foreign currency translation adjustments, net of $0 income tax for all periods				4
Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		2
Interest Rate Contract [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	(90)	(1)	(90)	1	(6)	(192)	(236)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	1	12	4	13
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	12	(1)	35
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	4	0	4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	2	(96)	11
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				96
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	0	3	1
Interest Rate Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(1)	(14)	13	6
Interest Rate Contract [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Foreign currency derivatives [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	70	117	70	117	50	108	97	146
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	22	22	(22)	(1)
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	(9)	(9)	(27)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	14	15	(44)	(29)
Foreign currency derivatives [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	7	7	(7)	(1)
Foreign currency derivatives [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Cross currency derivatives [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	0	(10)	0	(10)	0	0	(32)	(2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	0	20	0	(13)
Foreign currency translation adjustments, net of $0 income tax for all periods				4
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	0	0	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	4	0	4
Cross currency derivatives [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0	0
Cross currency derivatives [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		2
Commodity Contract [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	2	(2)	2	(2)	$ 37	$ (1)	$ 15	$ 2
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	(1)	(1)	(4)	(1)
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(2)	13	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	0	1	1	(1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	2	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	15	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(1)	(1)	1	(1)
Commodity Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ (14)	(15)	$ (7)	$ (3)
Commodity Contract [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)		$ 0
Minimum [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			1.00%
Minimum [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	272		272
Maximum [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			2.20%
Maximum [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	748		748
Weighted Average [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			2.10%
Weighted Average [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	498		498

XML

Fair Value (Quantitative Information) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ 71	$ 88	$ 101	$ 15	$ (112)	$ (90)
Interest Rate Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	1	(6)	(90)	(192)	(236)
Foreign Exchange Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	70	50	108	117	97	146
Cross currency derivatives [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	0	0	0	(10)	(32)	(2)
Commodity Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ 2	$ 37	$ (1)	$ (2)	$ 15	$ 2
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Minimum [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring	1.00%
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Maximum [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring	2.20%
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Weighted Average [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring	2.10%

XML

Fair Value (Nonrecurring Measurements) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Apr. 12, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges		$ 50	$ 29	$ 533	$ 1,374
AES Puerto Rico
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			73		73
Ventanas [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring		12		12
Angamos [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring		86		86
Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring		452		452
Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling Expense				5
Long Lived Assets Held And Used [Member] | AES Puerto Rico
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges					475
Long Lived Assets Held And Used [Member] | Ventanas [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges					67
Long Lived Assets Held And Used [Member] | Angamos [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges		0	0	0	155
Long Lived Assets Held And Used [Member] | Ventanas 3 & 4
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges		0	0	0	649
Long Lived Assets Held And Used [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges		0	0	468	0
Long Lived Assets Held And Used [Member] | Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges		$ 51	0	$ 51	0
Long Lived Assets Held And Used [Member] | Kilroot and Ballylumford [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	[1]					$ 17
Other Asset Impairment Charges					11
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			452		452
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Puerto Rico
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			548		548
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Puerto Rico | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Puerto Rico | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Puerto Rico | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			73		73
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			78		78
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas [Domain] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas [Domain] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas [Domain] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			11		11
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Angamos [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			241		241
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Angamos [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Angamos [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Angamos [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			86		86
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas 3 & 4
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			661		661
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas 3 & 4 | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas 3 & 4 | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Ventanas 3 & 4 | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			12		12
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			920		920
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			452		452
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			216		216
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			170		170
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			$ 0		$ 0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Kilroot and Ballylumford [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring						0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Kilroot and Ballylumford [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring						6
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Kilroot and Ballylumford [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring						$ 0
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(11.00%)
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				11.00%
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(66.00%)
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				21.00%
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				25.00%
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				20.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(1.00%)
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				23.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(66.00%)

[1] Represents the carrying values at the dates of measurement, before fair value adjustment. (2)See Note 17 — Held-for-Sale and Dispositions for further information. (3)The Jordan disposal group was written down to it’s fair value of $170 million. The resulting pre-tax loss of $51 million includes costs to sell of $5 million. 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, 2022 (in millions, except range amounts): Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)Long-lived assets held and used:Maritza$452 Discounted cash flowAnnual revenue growth (66)% to 11% (-11%) Annual variable margin (66)% to 23% (-1%) Weighted-average cost of capital 20% to 25% (21%) Total$452 

XML

Fair Value (Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Value added tax			$ 2
Accounts receivable - noncurrent	[1]	$ 132	117
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		16,368	16,091
Recourse debt		4,175	3,818
Carrying Amount [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent	[1]	92	55
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		17,358	14,811
Recourse debt		4,668	3,754
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		15,530	13,603
Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent		0	0
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		0	0
Recourse debt		0	0
Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent		0	0
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		14,870	16,065
Recourse debt		4,175	3,818
Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent	[1]	132	117
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,167 and $2,223, respectively, related to variable interest entities		1,498	26
Recourse debt		$ 0	$ 0

[1] These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $2 million as of September 30, 2022 and December 31, 2021.

XML

Derivative Instruments and Hedging Activities - Part 1 (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ (327,000,000)	$ (384,000,000)
Natural Gas and Natural Gas Liquids [Member]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	106,000,000
Energy [Domain]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	22,000,000
Coal [Member]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	6,000,000
Interest Rate Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(2,000,000)	(294,000,000)
Interest Rate Contract [Member] | Libor and Euribor [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	6,464,000,000
Cross currency derivatives [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(36,000,000)	(11,000,000)
Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(34,000,000)	(35,000,000)
Commodity Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(255,000,000)	$ (44,000,000)
Unidad de Fomento (funds code) | Cross currency derivatives [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	254,000,000
Argentina, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	7,000,000
Chile, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	27,000,000
Colombia, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	120,000,000
Mexico, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	54,000,000
Euro Member Countries, Euro | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	53,000,000
Brazil, Brazil Real | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	$ 36,000,000

XML

Derivative Instruments and Hedging Activities - Part 2 (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Liabilities
Derivative Liabilities, Gross	$ 327	$ 384
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	$ 824	$ 233
Derivative Asset, Noncurrent	Other noncurrent assets, net of allowance of $57 and $23, respectively	Other noncurrent assets, net of allowance of $57 and $23, respectively
Derivative Liability, Noncurrent	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	$ 74	$ 333
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	514	92
Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	253	51
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	310	141
Interest Rate Contract [Member]
Liabilities
Derivative Liabilities, Gross	2	294
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	476	53
Interest Rate Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	2	288
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	475	53
Interest Rate Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	0	6
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	1	0
Cross currency derivatives [Member]
Liabilities
Derivative Liabilities, Gross	36	11
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	0	5
Cross currency derivatives [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	36	11
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	0	5
Cross currency derivatives [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	0	0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	0	0
Foreign Exchange Contract [Member]
Liabilities
Derivative Liabilities, Gross	34	35
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	105	137
Foreign Exchange Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	22	23
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	20	28
Foreign Exchange Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	12	12
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	85	109
Commodity Contract [Member]
Liabilities
Derivative Liabilities, Gross	255	44
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	243	38
Commodity Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	14	11
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	19	6
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liabilities, Gross	241	33
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	$ 224	$ 32

XML

Derivative Instruments and Hedging Activities - Part 3 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Cash Flow Hedging [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (13)	$ (40)	$ (64)	$ (102)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	251	(8)	927	79
Cash Flow Hedging [Member] | Commodity Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(4)	4	(5)	1
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	5	3	66	20
Cash Flow Hedging [Member] | Foreign currency derivatives [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	2	(7)	2	(12)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	8	(7)	(4)	(27)
Cash Flow Hedging [Member] | Cross currency derivatives [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	(13)	0	(15)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	0	(14)	0	(11)
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Accumulated Other Comprehensive Income Loss Before Tax Expected Increase Decrease Next Twelve Months	(24)		(24)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(11)	(24)	(61)	(76)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	238	10	865	97
Loss on Cash Flow Hedges due to impairment of assets	0	0	(16)	0
Loss on Cash Flow Hedges due to change in forecast	2	0	17	0
Fair Value Hedging
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity	6	5	(7)	(2)
Fair Value Hedging | Other Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity		27	22	8
Not Designated as Hedging Instrument [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	39	44	44	64
Not Designated as Hedging Instrument [Member] | Other Contract [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	3	17	20	(64)
Not Designated as Hedging Instrument [Member] | Foreign currency derivatives [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	35	28	20	24
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	1	(1)	4	104
Designated as Hedging Instruments [Member] | Fair Value Hedging
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity	$ 6	$ (22)	$ (29)	$ (10)

XML

Derivative Instruments and Hedging Activities Credit Risk-Related Contingent Features (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Derivative, Net Liability Position, Aggregate Fair Value	$ 327	$ 384

XML

Financing Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 94	$ 58
Financing Receivable, Allowance for Credit Loss	0	1
Financing receivable	94	57
Argentina [Member]
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	6	11
Financing Receivable, Allowance for Credit Loss	0	1
Financing receivable	6	10
Chile [Member]
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	17	17
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	17	17
Other Entity [Member]
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	22	30
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	22	30
UNITED STATES
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	49	0
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	$ 49	$ 0

XML

Investments In and Advances To Affiliates (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended				9 Months Ended		18 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Mar. 31, 2022	Nov. 01, 2021	Mar. 31, 2021	Mar. 04, 2021
Investments in and Advances to Affiliates [Line Items]
Revenue	$ 3,627		$ 3,036		$ 9,557	$ 8,371
Operating margin (loss)	892		760		1,985	2,152
Gain (Loss) on Disposition of Business	1		22		0	81
Income (Loss) from Equity Method Investments	$ (26)		$ 25		(54)	(15)
Contributions and loans to equity affiliates					$ 202	$ 321
Shares Issued, Price Per Share								$ 25.85			$ 25.88
Uplight [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage			29.60%	32.30%		29.60%
Guacolda [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage			50.00%			50.00%
Fluence [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage		34.20%		43.20%						50.00%
Grupo Energia Gas Panama
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage	49.00%				49.00%		49.00%
Qatar Investment Authority
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage Sold				13.60%
Equity Method Investment, Purchase Price Agreement				$ 125
Majority Owned Affiliate [Member]
Investments in and Advances to Affiliates [Line Items]
Revenue					$ 1	$ 1
Operating margin (loss)					0	0
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest					0	(4)
Minority Owned Affiliates [Member]
Investments in and Advances to Affiliates [Line Items]
Revenue					1,218	866
Operating margin (loss)					(322)	45
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest					$ (410)	(108)
sPower [Member]
Investments in and Advances to Affiliates [Line Items]
Business Combination, Consideration Transferred						102
Fluence [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Realized Gain (Loss) on Disposal (less than)						60
Shares, Issued									35,650
Proceeds from Divestiture of Businesses		$ 936
Shares Issued, Price Per Share									$ 28
Guacolda [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Purchase Price Agreement						34
Equity Method Investment, Realized Gain (Loss) on Disposal (less than)			$ 34
Grupo Energía Gas Panamá
Investments in and Advances to Affiliates [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable						21	$ 45
Uplight [Member]
Investments in and Advances to Affiliates [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable						37
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss						$ 11

XML

Debt - Recourse Debt (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Debt Instrument [Line Items]
Borrowings under the revolving credit facilities			$ 4,214	$ 1,251
Loss on extinguishment of debt	$ (1)	$ (22)	$ (8)	(41)
Debt defaults at risk of causing cross default	0		0
Recourse Debt | Parent Company [Member] | Revolving Facility2027 | Revolving Credit Facility due 2027
Debt Instrument [Line Items]
Recourse Debt Total	$ 1,100		$ 1,100
Recourse Debt Total	1,100		1,100
Corporate and Other [Member] | Revolving Credit Facility due 2026 | Senior Notes [Member]
Debt Instrument [Line Items]
Issued senior notes	1,250		1,250
Corporate and Other [Member] | 1.375% Senior Notes due 2026 [Domain] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Amount		798
Corporate and Other [Member] | 1.375% Senior Notes due 2026 [Domain] | Senior Notes [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Issued senior notes		$ 800		$ 800
Debt Instrument, Interest Rate, Stated Percentage		1.375%		1.375%
Corporate and Other [Member] | 1.375% Senior Notes due 2026 [Domain] | Senior Notes [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Issued senior notes		$ 800		$ 800
Debt Instrument, Interest Rate, Stated Percentage		1.375%		1.375%
Corporate and Other [Member] | 2.45% Senior Notes due 2031 [Domain] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 997
Corporate and Other [Member] | 2.45% Senior Notes due 2031 [Domain] | Senior Notes [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Issued senior notes		$ 1,000		$ 1,000
Debt Instrument, Interest Rate, Stated Percentage		2.45%		2.45%
Corporate and Other [Member] | 2.45% Senior Notes due 2031 [Domain] | Senior Notes [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Issued senior notes		$ 1,000		$ 1,000
Debt Instrument, Interest Rate, Stated Percentage		2.45%		2.45%
Corporate and Other [Member] | Revolving Credit Facility due 2027 | Senior Notes [Member]
Debt Instrument [Line Items]
Issued senior notes	1,500		1,500
Corporate and Other [Member] | 200 Million Term Loan due September 2024 [Domain] | Senior Notes [Member]
Debt Instrument [Line Items]
Issued senior notes	200		200
Corporate and Other [Member] | 200 Million Term Loan due September 2024 (Amount Borrowed) [Domain] | Senior Notes [Member]
Debt Instrument [Line Items]
Issued senior notes	$ 200		$ 200

XML

Debt - Non-Recourse Debt Narrative (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt						$ 3,554	$ 978
Loss on extinguishment of debt	$ (1)			$ (22)		(8)	$ (41)
Restricted Net Assets	1,100					1,100
Restricted Cash And Debt Service Reserves	278					278		$ 370
Nonrecourse Debt [Member] | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt			$ 500
DPL Subsidiary [Member] | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		$ 140
Repayments of Long-term Debt		0
AES Brasil [Domain] | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt					$ 469
Repayments of Long-term Debt					$ (201)
AES Gener | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt						577
Repayments of Long-term Debt						(95)
Colon [Domain] | Nonrecourse Debt [Member] | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt			50
AES Hispanola Holdings BV | Bridge Loan | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Issued senior notes	500					500
AES Hispanola Holdings BV | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Repayments of Long-term Debt			0
AES Hispanola Holdings BV | Nonrecourse Debt [Member] | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt			450
Mercury Chile HoldCo LLC
Debt Instrument [Line Items]
Proceeds from Contributed Capital			196
Mercury Chile HoldCo LLC | Bridge Loan
Debt Instrument [Line Items]
Repayments of Short-Term Debt			350
Mercury Chile HoldCo LLC | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt			710
Mercury Chile HoldCo LLC | Nonrecourse Debt [Member] | Bridge Loan
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt			$ 350
Mercury Chile HoldCo LLC | Senior Notes [Member] | 6.5% senior notes due 2027
Debt Instrument [Line Items]
Issued senior notes	$ 360					$ 360
Debt Instrument, Interest Rate, Stated Percentage	6.50%					6.50%
IPL Subsidiary [Member] | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		200
Repayments of Long-term Debt		0
AES Clean Energy Subsidiary | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		139
Repayments of Long-term Debt		(119)
AES El Salvador | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		348
Repayments of Long-term Debt		$ (345)
AES Renewable Holdings | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt	$ 139
Repayments of Long-term Debt	0
AES Dominicana Renewable Energy | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt	120
Repayments of Long-term Debt	$ 0

XML

Debt - Subsidiary Non-recourse Debt in Default or Accelerated (Details) $ in Millions	Sep. 30, 2022 USD ($)
Nonrecourse Debt Default [Line Items]
Debt Default Amount	$ 273
Materiality threshold for cash distribution from business to Parent	20.00%
Debt defaults at risk of causing cross default	0
Covenant Violation [Member] | AES llumina [Member]
Nonrecourse Debt Default [Line Items]
Debt Default Amount	$ 27
Net Assets	(27)
Covenant Violation [Member] | AES Puerto Rico
Nonrecourse Debt Default [Line Items]
Debt Default Amount	170
Net Assets	(181)
Covenant Violation [Member] | Jordan (IPP1 & IPP4)
Nonrecourse Debt Default [Line Items]
Debt Default Amount	7	[1]
Net Assets	(11)	[1]
Covenant Violation [Member] | AES Jordan PSC
Nonrecourse Debt Default [Line Items]
Debt Default Amount	69
Net Assets	$ (76)

[1] Subsidiary Primary Nature of DefaultDebt in DefaultNet AssetsAES Puerto RicoCovenant$170 $(181) AES Jordan PSC (1) Covenant69 76 AES Ilumina (Puerto Rico)Covenant27 27 AES Jordan SolarCovenant7 11 Total$273  _____________________________ (1)Classified as current held-for-sale liability on the Condensed Consolidated Balance Sheets.

XML

Contingencies and Commitments (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Schedule Of Contingent Contractual Obligations [Line Items]
The range of expiration dates of guarantees made by the Parent Company	less than one year to no more than 16 years
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,466
Number of Agreements	139
Obligations Number Of Agreements	139
Accrual for Environmental Loss Contingencies	$ 10	$ 4
Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,282
Number of Agreements	81
Obligations Number Of Agreements	81
Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 156
Number of Agreements	44
Obligations Number Of Agreements	44
Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 26
Number of Agreements	12
Obligations Number Of Agreements	12
Surety Bond
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2
Number of Agreements	2
Obligations Number Of Agreements	2
Minimum [Member] | Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 0
Minimum [Member] | Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	0
Minimum [Member] | Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 0
Minimum [Member] | Standby Letters of Credit [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	1.00%
Letter of credit fee percentage paid	1.00%
Maximum [Member] | Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 400
Maximum [Member] | Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	36
Maximum [Member] | Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	15
Maximum [Member] | Surety Bond
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 1
Maximum [Member] | Standby Letters of Credit [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	3.00%
Letter of credit fee percentage paid	3.00%

XML

Contingencies and Commitments - Loss Contingencies (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020
Environmental Contingencies
Liability recorded for projected environmental remediation costs		$ 4	$ 10
AES Tiete [Domain]
Litigation Contingencies
Reversal of Cost of Goods		6
AES Tiete [Domain] | Compensation from Concession Agreement
Litigation Contingencies
Other Intangible Assets, Net				$ 190	$ 184
AES Tiete [Domain] | Compensation from Concession Agreement
Litigation Contingencies
Deferred Compensation Arrangement with Individual, Requisite Service Period	2 years 8 months 12 days
Litigation [Member]
Litigation Contingencies
Aggregate reserves for claims deemed both probable and reasonably estimable		$ 23
Maximum [Member] | Litigation [Member]
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss			704
Maximum [Member] | Environmental Issue
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss			12
Minimum [Member] | Litigation [Member]
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss			$ 239

XML

Leases Lessor (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lessor Disclosure [Abstract]
Operating Lease, Lease Income	$ 134	$ 193	$ 408	$ 454
Variable Lease, Income	(14)	(24)	(37)	(63)
Lease Income	120	169	371	391
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, after Year Five	361		361
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received	463		463
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five	24		24
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four	24		24
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three	24		24
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two	24		24
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year One	6		6
Sales-type and Direct Financing Leases, Lease Receivables, Gross Difference, Amount [Abstract]
Sales-type and Direct Financing Leases, Lease Receivable	200		200
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount	(263)		(263)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Lessor, Operating Lease, Payment to be Received, Year One	121		121
Lessor, Operating Lease, Payment to be Received, Year Two	372		372
Lessor, Operating Lease, Payment to be Received, Year Three	373		373
Lessor, Operating Lease, Payment to be Received, Year Four	374		374
Lessor, Operating Lease, Payment to be Received, Year Five	273		273
Lessor, Operating Lease, Payment to be Received, after Year Five	723		723
Lessor, Operating Lease, Payments to be Received	2,236		2,236
Operating Lease, Risk Strategy, Residual Asset	8,532		8,532		$ 8,486
Sales-type Lease, Interest Income	4	$ 3	20	11
Property, Plant and Equipment [Member]
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	1,701		1,701		2,423
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	1,701		1,701		2,423
Accumulated Amortization on PP&E
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	398		398		765
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	398		398		765
Assets
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	1,303		1,303		1,658
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	$ 1,303		$ 1,303		$ 1,658
AES Renewable Holdings
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Sales-type and Direct Financing Leases, Profit (Loss)				$ (13)

XML

Redeemable Stocks of Subsidiaries (Details) - USD ($) $ in Millions	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 1,201	$ 1,257
Temporary Equity, Other Charges	$ 81
AIMco
Temporary Equity [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners				25.00%
Cajuina Wind Complex
Temporary Equity [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		35.50%
IPALCO Enterprises, Inc. [Member]
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount		$ 700	700
Clean Energy
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount		424	497
IPL Subsidiary [Member]
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Preferred, Carrying Amount		60	60
Potengi
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Preferred, Carrying Amount		$ 17	$ 0
Cajuina Wind Complex
Temporary Equity [Line Items]
Sale of Stock, Description of Transaction		24
Sale of Stock, Consideration Received on Transaction		$ 12

XML

Equity Equity Transactions with Noncontrolling Interests (Details) - USD ($)

1 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

Jan. 31, 2022

Feb. 05, 2021

Sep. 30, 2022

Sep. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Dec. 31, 2020

Noncontrolling Interest [Line Items]

Contributions from noncontrolling interests

$ 122,000,000

$ 95,000,000

EQUITY

EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

Upon reconsideration of the nature of the Equity Units, the Company re-evaluated its accounting assessment and concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In the fourth quarter of 2021, the Company also corrected the classification of certain amounts in the Consolidated Balance Sheet and Statement of Changes in Equity to reflect the 2024 Purchase Contracts and Series A Preferred Stock as one unit of account. The corrections have no impact on the Company's net earnings, total assets, cash flows, or segment information.

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,275,962 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of September 30, 2022, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8680, equivalent to a reference price of $25.85. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of September 30, 2022, the present value of the Contract Adjustment Payments was $106 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

AES Clean Energy — During the second and third quarters of 2022, AES Clean Energy, through multiple transactions, sold noncontrolling interests in multiple project companies to tax equity partners, resulting in a $98 million and $112 million increase to NCI, respectively. AES Clean Energy is reported in the US and Utilities SBU reportable segment.

AES Brasil — On December 18, 2020, the AES Tietê board approved a proposal for the corporate reorganization and exchange of shares issued by AES Tietê with newly issued shares of AES Brasil, a formerly wholly-owned entity of AES Tietê, with the intent to list AES Brasil on Novo Mercado, a listing segment of the Brazilian stock exchange that requires equity capital to be composed only of common shares, as the 100% shareholder of AES Tietê. The reorganization and the exchange of shares was completed on March 26, 2021, and the shares issued by AES Brasil started trading on Novo Mercado on March 29, 2021. The Company maintains majority representation on AES Brasil’s board of directors, and as such, continues to consolidate AES Brasil.

Through multiple transactions in the first half of 2021, AES Holdings Brasil Ltda. acquired an additional 1.6% ownership in AES Brasil for $17 million. These transactions increased the Company’s ownership interest in AES Brasil to 45.7% and resulted in a $13 million decrease in Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $6 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $7 million.

In September 2022, AES Brasil commenced a private placement offering for its existing shareholders to subscribe for up to 107 million newly issued shares. AES Holdings Brasil Ltda. subscribed for 54 million shares and noncontrolling interest holders subscribed for 53 million shares, thereby increasing AES’ indirect beneficial interest in AES Brasil to 47.4%. AES Brasil received $77 million from noncontrolling interest holders during the third quarter of 2022, prior to the issuance of the shares in October 2022. Since the consideration received was nonrefundable, the impact was recorded in noncontrolling interests. AES Brasil is reported in the South America SBU reportable segment.

Chile Renovables — On July 29, 2021, AES Andes completed the sale of a 49% ownership interest in Chile Renovables SpA (“Chile Renovables”), a subsidiary which owns the Los Cururos wind facility, to Global Infrastructure Management, LLC (“GIP”) for $53 million. AES Andes retained a 51% ownership interest in Chile Renovables and the transaction decreased the Company’s indirect ownership in the subsidiary to 34%. As part of the transaction, AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP will make additional contributions to maintain its 49% ownership interest.

In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the South America SBU reportable segment.

Guaimbê Holding — In April 2021, Guaimbê Solar Holding S.A (“Guaimbê Holding”), a subsidiary of AES Brasil which wholly owns the Guaimbê solar complex and the Alto Sertão II wind facility, issued preferred shares representing 19.9% ownership in the subsidiary for total proceeds of $158 million. The transaction decreased the Company’s indirect ownership interest in the operational entities from 45.3% to 36.3%.

In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued additional preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction further decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the South America SBU reportable segment.

AES Andes — On December 29, 2020, AES Andes commenced a preemptive rights offering for its existing shareholders to subscribe for up to 1.98 billion of newly issued shares to fund its renewable growth program. The period ended on February 5, 2021 and Inversiones Cachagua SpA (“Cachagua”), an AES subsidiary, subscribed for 1.35 billion shares at a cost of $205 million, increasing AES’ indirect beneficial interest in AES Andes from 67% to 67.1%. The noncontrolling interest holders subscribed for 629 million shares, resulting in additional capital contributions of $94 million.

In January 2022, Cachagua completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98%. Through multiple transactions following the tender offer, Cachagua acquired an additional 1% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 99%. These transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the South America SBU reportable segment.

Colon — On September 13, 2021, the Company acquired the remaining 49.9% minority ownership interest in Colon. Following the completion of the transaction, the Company is now the sole owner of Colon. In conjunction with the acquisition, a note payable was recorded that is expected to be satisfied over two installments by the end of 2023. This transaction resulted in a $12 million decrease in Parent Company Stockholders’ Equity due to a decrease in additional paid-in-capital of $8 million and the reclassification of accumulated other comprehensive losses from Redeemable stock of subsidiaries to AOCL of $4 million. Colon is reported in the MCAC SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2022 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,734)	$	(456)	$	(30)	$	(2,220)
Other comprehensive income (loss) before reclassifications	(90)		653		—		563
Amount reclassified to earnings	—		41		1		42
Other comprehensive income (loss)	(90)		694		1		605
Reclassification from NCI due to share repurchases	(53)		(20)		(3)		(76)
Balance at the end of the period	$	(1,877)	$	218	$	(32)	$	(1,691)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign currency translation adjustment, net
	Gain on disposal and sale of business interests	$	—	$	—	$	—	$	(3)
	Net income attributable to The AES Corporation	$	—	$	—	$	—	$	(3)
Derivative gains (losses), net
	Non-regulated revenue	$	—	$	(1)	$	(1)	$	(1)
	Non-regulated cost of sales	(5)		2		(7)		(2)
	Interest expense	(9)		(33)		(42)		(62)
	Asset impairment expense	—		—		(16)		(13)
	Foreign currency transaction gains (losses)	2		(7)		2		(12)
	Income from continuing operations before taxes and equity in earnings of affiliates	(12)		(39)		(64)		(90)
	Income tax expense	(1)		10		12		23
	Net equity in earnings (losses) of affiliates	(1)		(1)		—		(12)
	Net income	(14)		(30)		(52)		(79)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	3		9		11		22
	Net income attributable to The AES Corporation	$	(11)	$	(21)	$	(41)	$	(57)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(2)	$	(1)	$	(3)
	Non-regulated cost of sales	—		(1)		—		(1)
	Other expense	(2)		—		(2)		(1)
	Income from continuing operations before taxes and equity in earnings of affiliates	(2)		(3)		(3)		(5)
	Income tax expense	1		(1)		1		—
	Net income	(1)		(4)		(2)		(5)
	Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	1		2		1		2
	Net income attributable to The AES Corporation	$	—	$	(2)	$	(1)	$	(3)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(11)	$	(23)	$	(42)	$	(63)

Common Stock Dividends — The Parent Company paid dividends of $0.1580 per outstanding share to its common stockholders during the first, second, and third quarters of 2022 for dividends declared in December 2021, February 2022 and July 2022, respectively.

On October 7, 2022, the Board of Directors declared a quarterly common stock dividend of $0.1580 per share payable on November 15, 2022, to shareholders of record at the close of business on November 1, 2022.

AES Brasil [Domain]

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

45.70%

47.40%

36.30%

47.40%

36.30%

100.00%

Sale of Stock, Percentage of Ownership before Transaction

45.30%

Ownership interest acquired in subsidiary

1.60%

1.60%

AES Brasil [Domain] | Private Placement

Noncontrolling Interest [Line Items]

Sale of Stock, Number of Shares Issued in Transaction

54,000,000

AES Gener

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

98.00%

99.00%

67.10%

99.00%

67.10%

Sale of Stock, Percentage of Ownership before Transaction

67.10%

67.00%

Ownership interest acquired in subsidiary

1.00%

1.00%

Chile Renovables SpA

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

51.00%

51.00%

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

49.00%

49.00%

Indirect Ownership Percentage in Subsidiary by Parent

34.00%

34.00%

Cajuina Wind Complex

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

35.50%

35.50%

Colon [Domain]

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

49.90%

49.90%

AES Gener

Noncontrolling Interest [Line Items]

Sale of Stock, Consideration Received on Transaction

$ 522,000,000

Stockholders' Equity, Period Increase (Decrease)

$ 169,000,000

Adjustments to Additional Paid in Capital, Other

93,000,000

Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent

76,000,000

Stock Issued During Period, Shares, New Issues

1,980,000,000

Common Stock, Shares Subscribed but Unissued

1,350,000,000

1,350,000,000

Investment Owned, at Cost

$ 13,000,000

$ 205,000,000

$ 13,000,000

$ 205,000,000

Contributions from noncontrolling interests

94,000,000

Other Noncontrolling Interests

629,000,000

629,000,000

AES Brasil [Domain]

Noncontrolling Interest [Line Items]

Stockholders' Equity, Period Increase (Decrease)

13,000,000

Adjustments to Additional Paid in Capital, Other

6,000,000

Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent

7,000,000

Investment Owned, at Cost

$ 17,000,000

$ 17,000,000

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

77,000,000

AES Brasil [Domain] | Private Placement

Noncontrolling Interest [Line Items]

Subsidiary or Equity Method Investee, Cumulative Number of Shares Issued for All Transactions

107,000,000

Sale of Stock, Number of Shares Issued in Transaction

53,000,000

Guaimbe Solar Complex [Member]

Noncontrolling Interest [Line Items]

Sale of Stock, Description of Transaction

3.5

19.9

Sale of Stock, Consideration Received on Transaction

$ 63,000,000

$ 158,000,000

Sale of Stock, Percentage of Ownership after Transaction

35.80%

Chile Renovables SpA

Noncontrolling Interest [Line Items]

Sale of Stock, Consideration Received on Transaction

80,000,000

$ 37,000,000

$ 53,000,000

Adjustments to Additional Paid in Capital, Other

12,000,000

9,000,000

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

68,000,000

28,000,000

Cajuina Wind Complex

Noncontrolling Interest [Line Items]

Sale of Stock, Description of Transaction

24

Sale of Stock, Consideration Received on Transaction

$ 12,000,000

Clean Energy

Noncontrolling Interest [Line Items]

Contributions from noncontrolling interests

$ 112,000,000

$ 98,000,000

Colon [Domain]

Noncontrolling Interest [Line Items]

Stockholders' Equity, Period Increase (Decrease)

12,000,000

Adjustments to Additional Paid in Capital, Other

8,000,000

Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent

$ 4,000,000

XML

Equity Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent			$ 605,000,000
Unfunded pension obligation, Net of Tax	$ (32,000,000)		(32,000,000)		$ (30,000,000)
Foreign currency translation adjustment, Net of Tax	(1,877,000,000)		(1,877,000,000)		(1,734,000,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,691,000,000)		(1,691,000,000)		(2,220,000,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			563,000,000
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	218,000,000		218,000,000		$ (456,000,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			42,000,000
Total foreign currency translation adjustment, net of income tax	(80,000,000)	$ (58,000,000)	(97,000,000)	$ (86,000,000)
Total pension adjustments, net of income tax	(1,000,000)	$ (3,000,000)	(2,000,000)	$ (4,000,000)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			653,000,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			41,000,000
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net			694,000,000
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			1,000,000
Total pension adjustments, net of income tax			1,000,000
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			(90,000,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Total foreign currency translation adjustment, net of income tax			(90,000,000)
AES Brasil [Domain]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustment, Net of Tax	(53,000,000)		(53,000,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(76,000,000)		(76,000,000)
AES Brasil [Domain] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net			(20,000,000)
AES Brasil [Domain] | Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unfunded pension obligation, Net of Tax	$ (3,000,000)		$ (3,000,000)

XML

Equity Reclassifications Out of AOCL (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Goods and Services Sold	$ (2,735)	$ (2,276)	$ (7,572)	$ (6,219)
General and Administrative Expense	(51)	(39)	(149)	(130)
Other expense	(10)	(12)	(51)	(32)
Interest expense	(276)	(242)	(813)	(669)
Gain on disposal and sale of business interests	1	22	0	81
Impairment expense			(533)	(1,374)
Foreign currency transaction gains (losses)	8	29	(60)	(8)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	617	586	721	465
Income tax expense	(145)	(126)	(186)	(75)
Income (Loss) from Equity Method Investments	(26)	25	(54)	(15)
INCOME FROM CONTINUING OPERATIONS	446	485	481	375
Net income	446	485	481	379
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	421	343	357	223
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			42
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(11)	(23)	(42)	(63)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Gain on disposal and sale of business interests	0	0	0	(3)
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	0	0	0	(3)
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Other expense	(2)	0	(2)	(1)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	(2)	(3)	(3)	(5)
Income tax expense	(1)	(1)	(1)	0
Net income	(1)	(4)	(2)	(5)
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	1	2	1	2
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Regulated Operation
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Goods and Services Sold	0	(2)	(1)	(3)
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unregulated Operation
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Goods and Services Sold	0	(1)	0	(1)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Non-regulated revenue	0	(1)	(1)	(1)
Cost of Goods and Services Sold	(5)	2	(7)	(2)
Interest expense	(9)	(33)	(42)	(62)
Impairment expense	0	0	(16)	(13)
Foreign currency transaction gains (losses)	2	(7)	2	(12)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	(12)	(39)	(64)	(90)
Income tax expense	(1)	10	12	23
Income (Loss) from Equity Method Investments	(1)	(1)	0	(12)
Net income	(14)	(30)	(52)	(79)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	3	9	11	22
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			41
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	(11)	(21)	(41)	(57)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			1
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$ 0	$ (2)	$ (1)	$ (3)

XML

Equity Common Stock Dividends (Details) - $ / shares		3 Months Ended
	Nov. 15, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021
Common Stock, Dividends, Per Share, Cash Paid		$ 0.1580	$ 0.1580	$ 0.1580
Common Stock, Dividends, Per Share, Declared		$ 0.1580	$ 0.1580		$ 0.1505	$ 0.1505
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.1580

XML

Equity Units (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Mar. 04, 2021
Equity Units Disclosure [Line Items]
Accretion Expense	$ 5
Equity Unit, Shares Issued					10,430,500
Preferred Stock, Shares Issued	1,043,050	1,043,050		1,043,050
Preferred Stock, Liquidation Preference Per Share	$ 1,000
Preferred Stock, Dividend Rate, Percentage	0.00%
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share	$ 100
Forward Contract Indexed to Issuer's Equity, Interest Rate	6.875%
Forward Contract Indexed to Issuer's Equity, Shares	57,275,962
Shares Issued, Price Per Share			$ 25.85			$ 25.88
Forward Contract Indexed to Issuer's Equity, Maximum Settlement Rate	3.864	3.8680
Forward Contract Indexed to Equity, Settlement, Cash, Amount	$ 1,000
Forward Contract Indexed to Issuer's Equity, Present Value of Interest Payments	$ 205	$ 106
Preferred Shares Deliverable Upon Early Settlement of Purchase Contracts	85.00%
Corporate Unit, Notional Value	$ 1,043				$ 1,043
Preferred Stock, Value, Issued	$ 838	$ 838		$ 838
Preferred Stock, Convertible, Conversion Price		$ 31.67			$ 31.70
Preferred Stock , Convertible, Initial Conversion Rate					$ 31.5428
Preferred Stock, Redemption Percentage	100.00%
Preferred Stock, Beneficial Ownership Interest in One Share					10.00%
Corporate Equity Unit, Stated Value per Share					$ 100
Proceeds from Equity Units, net of underwriting costs and commissions, before offering expenses	$ 1,000

XML

Segments (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Total Revenue	$ 3,627	$ 3,036	$ 9,557	$ 8,371
Number of strategic business units | segment			4
Number of reportable segments | segment			4
Reconciliation To Income From Continuing Operations Before Taxes
Income (loss) from continuing operations before taxes and equity in earnings of affiliates	617	586	$ 721	465
Net equity in earnings (losses) of affiliates	(26)	25	(54)	(15)
Less: Income (loss) from continuing operations before taxes, attributable to noncontrolling interests	42	117	161	140
Pretax contribution	549	494	506	310
Unrealized derivative losses (gains)	8	53	2	(24)
Unrealized foreign currency transaction losses (gains)	(3)	(11)	(23)	(5)
Disposition/acquisition losses (gains)	(4)	33	(36)	277
Impairment losses	(17)	(18)	(497)	(1,121)
Extinguishment of debt losses (gains)	(4)	(27)	(20)	(51)
Gain (Loss) on Contract Termination	0	(36)	0
Adjusted Pretax Contribution	569	428	1,080	978
Assets
Total Assets	37,775		37,775		$ 32,963
Gener Subsidiary [Member]
Reconciliation To Income From Continuing Operations Before Taxes
Gain (Loss) on Contract Termination				(256)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total Revenue	(30)	(24)	(101)	(91)
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	(7)	12	23	37
US and Utilities [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	1,506	1,327	3,820	3,248
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	192	254	319	426
Assets
Total Assets	19,828		19,828		16,512
MCAC [Member]
Segment Reporting Information [Line Items]
Total Revenue	940	559	2,192	1,584
MCAC [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	940	559	2,192	1,584
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	298	81	422	213
Assets
Total Assets	5,249		5,249		4,545
EURASIA [Member]
Segment Reporting Information [Line Items]
Total Revenue	261	257	947	804
EURASIA [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	261	257	947	804
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	47	45	154	144
Assets
Total Assets	2,708		2,708		3,466
Corporate Other And Other Eliminations [Member]
Segment Reporting Information [Line Items]
Total Revenue	(6)	(3)	(18)	(9)
Corporate Other And Other Eliminations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	24	21	83	82
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	(63)	(47)	(213)	(109)
Assets
Total Assets	936		936		712
South American SBU
Segment Reporting Information [Line Items]
Total Revenue	926	896	2,616	2,744
South American SBU | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	926	896	2,616	2,744
Reconciliation To Income From Continuing Operations Before Taxes
Adjusted Pretax Contribution	102	$ 83	375	$ 267
Assets
Total Assets	$ 9,054		$ 9,054		$ 7,728

XML

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 3,627	$ 3,036	$ 9,557		$ 8,371
Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	968	760	2,590		2,117
Other non-606 revenue	8	9	23		30
Revenue	976	769	2,613		2,147
Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	2,514	2,015	6,512		5,706
Other non-606 revenue	137	252	432	[1]	518	[1]
Revenue	2,651	2,267	6,944		6,224
US and Utilities [Domain]
Disaggregation of Revenue [Line Items]
Revenue	1,506	1,327	3,820		3,248
US and Utilities [Domain] | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	968	760	2,590		2,117
Other non-606 revenue	8	9	23		30
Revenue	976	769	2,613		2,147
US and Utilities [Domain] | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	491	394	1,041		850
Other non-606 revenue	39	164	166	[1]	251	[1]
Revenue	530	558	1,207		1,101
MCAC [Member]
Disaggregation of Revenue [Line Items]
Revenue	940	559	2,192		1,584
MCAC [Member] | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0		0
Other non-606 revenue	0	0	0		0
Revenue	0	0	0		0
MCAC [Member] | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	916	534	2,119		1,509
Other non-606 revenue	24	25	73	[1]	75	[1]
Revenue	940	559	2,192		1,584
Eurasia - Generation [Member]
Disaggregation of Revenue [Line Items]
Revenue	261	257	947		804
Eurasia - Generation [Member] | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0		0
Other non-606 revenue	0	0	0		0
Revenue	0	0	0		0
Eurasia - Generation [Member] | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	208	197	783		621
Other non-606 revenue	53	60	164	[1]	183	[1]
Revenue	261	257	947		804
Corporate Other And Other Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	(6)	(3)	(18)		(9)
Corporate Other And Other Eliminations [Member] | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0		0
Other non-606 revenue	0	0	0		0
Revenue	0	0	0		0
Corporate Other And Other Eliminations [Member] | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	(7)	(3)	(19)		(9)
Other non-606 revenue	1	0	1	[1]	0	[1]
Revenue	(6)	(3)	(18)		(9)
South American SBU
Disaggregation of Revenue [Line Items]
Revenue	926	896	2,616		2,744
South American SBU | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0		0
Other non-606 revenue	0	0	0		0
Revenue	0	0	0		0
South American SBU | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	906	893	2,588		2,735
Other non-606 revenue	20	3	28	[1]	9	[1]
Revenue	$ 926	$ 896	$ 2,616		$ 2,744

[1] Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

XML

Revenue Contract Balances (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Aug. 31, 2021	Dec. 31, 2021	Aug. 31, 2020
Financing Receivable, after Allowance for Credit Loss	$ 94,000,000			$ 57,000,000
Financing Receivable, Allowance for Credit Loss	0			1,000,000
Contract with Customer, Liability	252,000,000			216,000,000
Contract with Customer, Liability	252,000,000			216,000,000
Contract with Customer, Liability, Revenue Recognized	34,000,000	$ 410,000,000
Mong Duong Subsidiary [Member]
Financing Receivable, after Allowance for Credit Loss	1,200,000,000			1,200,000,000
Financing Receivable, Allowance for Credit Loss	29,000,000			30,000,000
Mong Duong Subsidiary [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Financing Receivable, after Allowance for Credit Loss, Noncurrent	1,100,000,000			1,100,000,000
Financing Receivable, after Allowance for Credit Loss, Current	$ 96,000,000			$ 91,000,000
Angamos [Member] | Minera Escondida and Minera Spence [Member]
Contract with Customer, Liability					$ 655,000,000
Capitalized Contract Cost, Amortization			$ 55,000,000
Contract with Customer, Liability					$ 655,000,000

XML

Revenue Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2022 USD ($)
Remaining Performance Obligations [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 10

XML

Other Income and Expense - Other Income (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022		Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Schedule of Other Nonoperating Income [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain						$ 36
Other Nonoperating Income	$ 4		$ 48	$ 80		274
Colon [Domain]
Schedule of Other Nonoperating Income [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain						6
Other Income [Member]
Schedule of Other Nonoperating Income [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	0	[1]	8	0	[1]	220
Insurance proceeds (2)	0		0	(16)		0
Other income	0		6	15		16
Other Nonoperating Income	$ 4		$ 48	$ 80		$ 274

[1] Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative. (2)    Primarily related to insurance recoveries associated with property damage at TermoAndes. (3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information. (4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information. (5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

XML

Other Income and Expense - Other Expense (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2022		Jun. 30, 2022	Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Schedule of other expense [Line Items]
Other Expenses	$ 10			$ 12	$ 51		$ 32
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain							36
Other Expense [Member]
Schedule of other expense [Line Items]
Sales-type and Direct Financing Leases, Profit (Loss)	0			0	0	[1]	13
Gain (Loss) on Disposition of Assets	0			6	9		13
Gain (Loss) Related to Litigation Settlement	8			2	8		2
Other Nonoperating Expense	2			4	14		4
Other Expenses	10			12	51		32
Loss from Catastrophes	0		$ 20	0	20		0
Other Income [Member]
Schedule of other expense [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	0	[2]		8	0	[2]	220
Insured Event, Gain (Loss)	0			0	16		0
Litigation Settlement, Amount Awarded from Other Party	0			0	6		0
Asset Acquisition of a VIE, Contingent Consideration, Remeasurement Gain	0			32	3		32
Allowance for Funds Used During Construction, Capitalized Interest	4			2	9		6
Proceeds, Financing Receivable, Previously Written Off, Recovery	0			0	5		0
Other Income [Member] | Valuation, Market Approach
Schedule of other expense [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	$ 0			$ 0	$ 26		$ 0

[1] Related to a loss recognized at commencement of a sales-type lease at AES Renewable Holdings. See Note 9—Leases for further information.

[2] Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative. (2)    Primarily related to insurance recoveries associated with property damage at TermoAndes. (3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information. (4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information. (5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

XML

Asset Impairment Expense (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2022	Sep. 30, 2021
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 50	$ 29		$ 533	$ 1,374
Other Asset Impairment Charges	(50)	(29)		(533)	(1,374)
AES Panama
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	0	11	$ 30	0	11
Other Subsidiaries [Member]
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	(1)	18		14	17
AES Puerto Rico
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	0	0		0	475
Assets Carrying Amount Disclosure Nonrecurring		73			73
AES Puerto Rico | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges					(475)
Mountain View Power Partners
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use				67
Assets Carrying Amount Disclosure Nonrecurring	11			11
Mountain View Power Partners | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	0	0		0	(67)
Angamos [Member]
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use				155
Assets Carrying Amount Disclosure Nonrecurring	86			86
Angamos [Member] | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	0	0		0	(155)
Ventanas [Domain]
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use				649
Assets Carrying Amount Disclosure Nonrecurring	12			12
Ventanas [Domain] | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges					(67)
Ventanas 3 & 4 | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	0	0		0	(649)
Maritza
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use				468
Assets Carrying Amount Disclosure Nonrecurring	452			452
Maritza | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	0	0		(468)	0
Jordan (IPP1 & IPP4) | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	$ (51)	$ 0		$ (51)	$ 0

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosures [Line Items]
Effective Income Tax Rate Reconciliation, Percent	24.00%	22.00%	26.00%	16.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
Income Tax Expense (Benefit)	$ 145	$ 126	$ 186	$ 75
AES Argentina [Member]
Income Tax Disclosures [Line Items]
Income Tax Expense (Benefit)			$ 19
AES Brasil [Domain]
Income Tax Disclosures [Line Items]
Income Tax Expense (Benefit)				96
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Amount				$ 44

XML

Held-for-Sale and Dispositions Dispositions (Details) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2022	Sep. 30, 2021	Apr. 12, 2019
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Proceeds from Divestiture of Businesses and Interests in Affiliates					$ 1	$ 91
Gain (loss) on disposal and sale of businesses interests		$ (1)	$ (22)		0	$ (81)
Jordan (IPP1 & IPP4)
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Equity Method Investment, Ownership Percentage				10.00%
Itabo Opco [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Disposal Group Not Discontinued Operation Ownership Interest Sold			43.00%			43.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Itabo Opco [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Proceeds from Divestiture of Businesses and Interests in Affiliates						$ 88
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | AES Tiete Inova Solucoes
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Proceeds from Divestiture of Businesses and Interests in Affiliates						20
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax		(2)	$ 17		50	57
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Mong Duong Subsidiary [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax		11	12		52	42
Assets Carrying Amount Disclosure Nonrecurring				$ 570
Disposal Group Not Discontinued Operation Ownership Interest Sold				51.00%
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Jordan (IPP1 & IPP4)
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax		(13)	$ 5		(2)	15
Assets Carrying Amount Disclosure Nonrecurring		$ 174			$ 174
Proceeds from Divestiture of Businesses and Interests in Affiliates				$ 58
Disposal Group Not Discontinued Operation Ownership Interest Sold				26.00%
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Mong Duong Financing SPV
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Disposal Group Not Discontinued Operation Ownership Interest Sold				51.00%
Kilroot and Ballylumford [Member] | Long Lived Assets Held And Used [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Assets Carrying Amount Disclosure Nonrecurring	[1]						$ 17
AES Tiete Inova Solucoes | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal						(1)
Itabo Opco [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal						$ 4

[1] Represents the carrying values at the dates of measurement, before fair value adjustment. (2)See Note 17 — Held-for-Sale and Dispositions for further information. (3)The Jordan disposal group was written down to it’s fair value of $170 million. The resulting pre-tax loss of $51 million includes costs to sell of $5 million. 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, 2022 (in millions, except range amounts): Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)Long-lived assets held and used:Maritza$452 Discounted cash flowAnnual revenue growth (66)% to 11% (-11%) Annual variable margin (66)% to 23% (-1%) Weighted-average cost of capital 20% to 25% (21%) Total$452 

XML

Acquisitions (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022		Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain						$ 36
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 81			81
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination						7
Cajuina Wind Complex
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred						22
Agua Clara
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount			98			98
Tunica Windpower LLC
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount			22			22
Windor Solar
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount	$ 17			$ 17
Cubico Wind Complex
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount			109			109
Cajuina Wind Complex Phase II
Business Acquisition [Line Items]
Asset Acquisition, Contingent Consideration, Liability	3			3
Asset Acquisition, Price of Acquisition, Expected						24
Other Income [Member]
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	0	[1]	8	0	[1]	220
Asset Acquisition of a VIE, Contingent Consideration, Remeasurement Gain	0		$ 32	3		$ 32
AIMco
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			25.00%			25.00%
sPower [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred						$ 102
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 45			45
sPower [Member] | Other Income [Member]
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain			178			214
Cajuina Wind Complex
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred						6
Serra Verde Wind Complex
Business Acquisition [Line Items]
Notes Payable	$ 12			12
Asset Acquisition, Consideration Transferred				6
Serra Verde Wind Complex | Serra Verde Wind Complex
Business Acquisition [Line Items]
Asset Acquisition, Price of Acquisition, Expected				18
Great Cove Solar I
Business Acquisition [Line Items]
Asset Acquisition, Purchase Price						13
Asset Acquisition, Contingent Consideration, Liability			6			6
Great Cove Solar II
Business Acquisition [Line Items]
Asset Acquisition, Purchase Price						24
Asset Acquisition, Contingent Consideration, Liability			$ 22			$ 22
Windor Solar
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred, Contingent Consideration				5
Tunica Windpower LLC
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred, Contingent Consideration				$ 7
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			75.00%			75.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage			25.00%			25.00%
Windor Solar
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%			100.00%
Agua Clara
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%			100.00%
Tunica Windpower LLC
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%			100.00%

[1] Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative. (2)    Primarily related to insurance recoveries associated with property damage at TermoAndes. (3)     Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at AES Clean Energy. See Note 18—Acquisitions for further information. (4)     For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 6—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 18—Acquisitions for further information. (5)     Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jan. 01, 2022	Dec. 31, 2021	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock , Convertible, Initial Conversion Rate							$ 31.5428
Preferred Stock, Convertible, Conversion Price	$ 31.67		$ 31.67				$ 31.70
Corporate Unit, Notional Value		$ 1,043		$ 1,043			$ 1,043
Preferred Stock, Value, Issued	$ 838	838	$ 838	838		$ 838
Preferred Stock, Convertible, Current Conversion Rate	$ 31.5756		$ 31.5756
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders (Income)	$ 421	$ 343	$ 357	$ 219
Income from continuing operations attributable to The AES Corporation common stockholders (Shares)	668	667	668	666
Income from continuing operations attributable to The AES Corporation common stockholders (Per Share)	$ 0.63	$ 0.52	$ 0.53	$ 0.32
DILUTED EARNINGS PER SHARE:
Income from continuing operations, diluted	$ 421	$ 344	$ 358	$ 220
Weighted average number of shares outstanding, diluted	711	711	711	701
Income from continuing operations, per diluted share	$ 0.59	$ 0.48	$ 0.50	$ 0.31
Accounting Standards Update 2020-06
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, Value, Issued					$ 13
Share-based Payment Arrangement, Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Dilutive Securities Effect On Basic EPS, dilutive Stock Options, per diluted share	$ 0	$ 0	$ 0	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	1	1	1	1
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Dilutive Securities Effect On Basic EPS, dilutive Stock Options, per diluted share	$ 0	$ 0	$ 0	$ 0
Restricted stock units (Shares)	1	1	1	1
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	2	2	2	3
Dilutive Securities Effect On Basic EPS, dilutive Restricted Stock Units, per diluted share	$ 0	$ (0.01)	$ 0	$ 0
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Restricted stock units (Shares)	2	2	2	3
Dilutive Securities Effect On Basic EPS, dilutive Restricted Stock Units, per diluted share	$ 0	$ (0.01)	$ 0	$ 0
Equity Unit Purchase Agreements
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	40	41	40	31
Dilutive Securities Effect on Basic EPS, dilutive Equity Unit Purchase Agreements, per diluted share	$ (0.04)	$ (0.03)	$ (0.03)	$ (0.01)
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	$ 0	$ 1	$ 1	$ 1
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities Effect on Basic EPS, dilutive Equity Unit Purchase Agreements, per diluted share	$ (0.04)	$ (0.03)	$ (0.03)	$ (0.01)
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	40	41	40	31
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	$ 0	$ 1	$ 1	$ 1
Share-based Payment Arrangement [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			2	1
Restricted Stock Units (RSUs) [Member] | Accounting Standards Update 2020-06
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		1

XML

Risks and Uncertainties (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2021	Sep. 30, 2022
Unusual Risk or Uncertainty [Line Items]
Other than Temporary Impairment Losses, Investments, Held-to-Maturity Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Default Rate		10.00%
Alto Maipo [Member]
Unusual Risk or Uncertainty [Line Items]
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount	$ 1,200

XML

Subsequent Events (Details) - Subsequent Event [Member] - AES Southland [Domain]	Nov. 03, 2022
Subsequent Event [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	50.10%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	14.90%