AES (AES) Financial History

Our internal controls, accounting policies, and practices are designed to enable us to evaluate transactions in a timely and accurate manner in compliance with GAAP, laws and regulations, taxation requirements, and fe…

•trigger defaults in the Parent Company's outstanding debt.

We attempt to finance our domestic and foreign projects through non-recourse debt or "non-recourse financing" that requires the loans to be repaid solely from the project's revenues and provide that the repayment of t…

In the fourth quarter of 2022, the European Commission adopted an amended Directive on Pillar 2 establishing a global minimum tax at a 15% rate.

In addition to government regulators, many groups, including politicians, environmentalists, the investor community, and other private parties have expressed increasing concern about GHG emissions.

for newly constructed or reconstructed coal-fired electric utility steam generating units as proposed in 2018.

International, federal, and various regional and state authorities regulate GHG emissions and have created financial incentives to reduce them.

Our businesses are subject to stringent environmental laws and regulations by many federal, regional, state, and local authorities, international treaties, and foreign governmental authorities.

Pursuant to EPAct 2005, the NERC has been certified by FERC as the Electric Reliability Organization ("ERO") to develop mandatory and enforceable electric system reliability standards applicable throughout the U.S.

Furthermore, in many countries where we conduct business, the regulatory environment is constantly changing and it may be difficult to predict the impact of the regulations on our businesses.

Long-lived assets are initially recorded at cost or fair value, are depreciated over their estimated useful lives, and are evaluated for impairment only when impairment indicators are present, such as deterioration in…

of pension plan beneficiaries and the discount rate used to determine the present value of future pension obligations.

of such investments and/or through certain limited governance rights, such as rights to veto significant actions, we do not always have this type of influence, and the scope and impact of such influence may be limited.

Further, we have a significant equity method investment in Fluence.

A disruption or failure of electric generation, transmission or distribution systems or natural gas production, transmission, storage, or distribution systems in the event of a hurricane, tornado, or other severe weat…

We have implemented measures to help prevent unauthorized access to our systems and facilities, including certain measures to comply with mandatory regulatory reliability standards.

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

Emerging technologies may also allow new competitors to more effectively compete in our markets or disintermediate the services we provide our customers, including traditional utility and centralized generation services.

Acquisitions have been a significant part of our growth strategy historically and more recently as we grow our renewables business.

Many of our generation plants conduct business under long-term sales and supply contracts, which helps these businesses to manage risks by reducing the volatility associated with power and input costs and providing a…

Additionally, in the U.S., there is a significant backlog of interconnection requests for renewables and battery storage projects and the average time for receiving interconnection approvals is over four years, with s…

In addition, new tariffs, duties, or other assessments have been imposed on the imports of solar cells, modules, batteries, or other equipment utilized in our renewable energy projects.

Wind, solar, and energy storage projects are subject to substantial risks.

As more fully disclosed in Item 9A.—Controls and Procedures, we have identified a material weakness in our internal control over financial reporting that existed at December 31, 2024.

systems are adequate to accurately and fairly reflect the transactions and dispositions of the assets of the Company, the identification of significant deficiencies or material weaknesses in our internal controls that…

involving material subsidiaries and relating to accelerations of outstanding material debt of material subsidiaries or any subsidiaries that in the aggregate constitute a material subsidiary; or

We operate in the U.S.

modifications to coal-fired generating units without proper permit approvals and without installing best available control technology.

lived assets could have a material adverse effect on our business, financial condition, results of operations, and prospects.

We routinely enter into contracts to hedge a portion of our purchase and sale commitments for electricity, fuel requirements and other commodities to lower our financial exposure related to commodity price fluctuations.

regulator not to permit timely and full recovery of the costs incurred.

We have implemented measures to help prevent unauthorized access to our systems and facilities, including certain measures to comply with mandatory regulatory reliability standards.

Many of our generation plants conduct business under long-term sales and supply contracts, which helps these businesses to manage risks by reducing the volatility associated with power and input costs and providing a…

projects, abandoning the development of certain U.S.

In addition, new tariffs, duties or other assessments could be imposed on the imports of solar cells, modules, batteries or other equipment utilized in our renewable energy projects.

of our U.S.

We operate in the U.S.

initiatives could also result in the early retirement of coal-fired generation facilities, which could result in stranded costs if regulators disallow full recovery of investments.

There currently is no U.S.

regional reliability organizations with responsibility for auditing, investigating and otherwise ensuring compliance with reliability standards, subject to FERC oversight.

related to the trading, reporting, and clearing of derivatives and similar regulations may be passed in other jurisdictions where we conduct business.

We have 29 defined benefit plans, five at U.S.

In addition, we are generally dependent on the management team of our equity method investments to operate and control such projects or businesses.

remaining investment in obsolete assets, or if implemented technology fails to operate as intended, our businesses, operating results and financial condition could be materially adversely affected.

were to acquire any of these types of businesses, there can be no assurance that we will be successful in transitioning them to private ownership or that we will not incur unforeseen obligations or liabilities.

which could result in delays or cost increases to existing or future interconnection requests of intermittent renewable energy projects, such as solar and wind.