Despite negative opinions, Anderson going forward with water rate plans
In three different opinions, the Indiana Office of Utility Consumer Counselor questioned the validity of the city's plans for the water department.
One opinion recommended the requested rate increase be reduced from 121% over five years to 75%.
The last water rate increase was approved by the state in 2015.
If approved, the rate for an average residential customer is expected to increase from $23.51 to $55.25 starting in 2029.
Large customers of the water utility will see an increase from $117,772 monthly to $434,171 starting in 2029.
A second opinion stated that Anderson didn't need to build a new treatment plant and well field in south Anderson, noting that the current system loses 20% of the water.
The third opinion stated that instead of a $130 million project, the city's funding request for the projects should be $102 million.
Last year, the Anderson City Council approved $130 million in bonds over the next three years.
The council has already approved $9 million in American Rescue Plan funds, and the Anderson Redevelopment Commission is providing $19 million toward the project.
All the work is scheduled to be completed by September 2029, with work on the initial phase starting in later this year.
Anderson officials have responded to the opinions and the Indiana Utility Regulatory Commission has a hearing set for May 8.
'There is a legal process for acquiring approval from the IURC,' Anderson Mayor Thomas Broderick Jr. said. 'This includes a built-in mechanism for another bureaucratic agency, the Indiana Office of Utility Consumer Counselor, that acts, for the lack of a better description, as the 'loyal opposition' to petitions.'
Broderick said the IURC is not bound to accept the opinions or positions of the consumer counselor.
'This is a process,' he said. 'These are opinions from people who don't know much about Anderson.
'They are dead wrong about the plant on the south side,' Broderick said. 'We're committed to move forward.'
Broderick said the existing Wheeler Avenue plant is 75 years old and that the wells supplying water to the plant are in a federal 'super fund' site and production has dropped by 50%.
'We have already made a lot of internal hard choices,' he said. 'We want to be fair to the rate payers.'
Broderick said shutting down the Wheeler Avenue plant will take care of many problems.
'You can't replace 400 miles of pipes overnight,' he said. 'Many of them have been in place for over 100 years.'
Broderick said the city is in the process of expanding the Lafayette water treatment plant to handle 14 million gallons of water per day, and additional property has been purchased for new wells to supply the plant.
'We all know the growth is coming up Interstate 69 and more people and businesses will be coming to Anderson,' he said. 'We want to meet those requirements. It's important to me that we don't do anything that keeps people from coming to Anderson.'
Broderick said the city has contracted to purchase property for new well fields and a treatment plant in south Anderson.
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Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit Safe Harbor Disclosure This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2024 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law. Any Stockholder who desires a copy of the Company's 2024 Annual Report on Form 10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at Website Disclosure AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release. THE AES CORPORATION Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in millions, except share and per share amounts) Revenue:Non-Regulated $ 1,922$ 2,070$ 3,863$ 4,302 Regulated 9338721,9181,725 Total revenue 2,8552,9425,7816,027 Cost of Sales:Non-Regulated (1,607)(1,671)(3,268)(3,404) Regulated (795)(718)(1,619)(1,451) Total cost of sales (2,402)(2,389)(4,887)(4,855) Operating margin 4535538941,172 General and administrative expenses (49)(66)(126)(141) Interest expense (352)(389)(694)(746) Interest income 7088139193 Loss on extinguishment of debt (5)(9)(13)(10) Other expense (295)(84)(347)(122) Other income 31213856 Gain on disposal and sale of business interests 7016944 Asset impairment reversals (expense) 154(38)105(84) Foreign currency transaction gains (losses) (28)38(38)30 Other non-operating expense (10)—(10)— INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES 3911517392 Income tax benefit (expense) (167)35(184)51 Net equity in earnings (losses) of affiliates (22)3(56)(12) NET INCOME (LOSS) (150)153(223)431 Less: Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries 55123174277 NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION $ (95)$ 276$ (49)$ 708 Decrease (increase) in redemption value of redeemable stock of subsidiaries (10)6(10)— NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON STOCKHOLDERS $ (105)$ 282$ (59)$ 708 BASIC EARNINGS PER SHARE:NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON STOCKHOLDERS $ (0.15)$ 0.40$ (0.08)$ 1.01 DILUTED EARNINGS PER SHARE:NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON STOCKHOLDERS $ (0.15)$ 0.39$ (0.08)$ 0.99 DILUTED SHARES OUTSTANDING 712713712713 THE AES CORPORATION Strategic Business Unit (SBU) Information (Unaudited)Three Months Ended June 30,Six Months Ended June 30, (in millions) 2025202420252024 REVENUE Renewables SBU $ 644$ 619$ 1,310$ 1,262 Utilities SBU 9548961,9631,769 Energy Infrastructure SBU 1,3061,4622,6263,071 New Energy Technologies SBU ———— Corporate and Other 43407973 Eliminations (92)(75)(197)(148) Total Revenue $ 2,855$ 2,942$ 5,781$ 6,027 THE AES CORPORATION Condensed Consolidated Balance Sheets (Unaudited) June 30, 2025December 31,2024(in millions, except share and per share data) ASSETSCURRENT ASSETS Cash and cash equivalents $ 1,350$ 1,524 Restricted cash 763437 Accounts receivable, net of allowance of $54 and $52, respectively 1,8651,646 Inventory 647593 Prepaid expenses 132157 Other current assets, net of allowance of $2 and $0, respectively 1,5321,612 Current held-for-sale assets 31862 Total current assets 6,3206,831 NONCURRENT ASSETSProperty, plant and equipment, net of accumulated depreciation of $9,311 and $8,701, respectively 34,72733,166 Investments in and advances to affiliates 1,0911,124 Debt service reserves and other deposits 8878 Goodwill 345345 Other intangible assets, net of accumulated amortization of $472 and $426, respectively 2,0501,947 Deferred income taxes 402365 Loan receivable, net of allowance of $20 and $0, respectively 800— Other noncurrent assets, net of allowance of $22 and $20, respectively 2,7192,917 Noncurrent held-for-sale assets —633 Total noncurrent assets 42,22240,575 TOTAL ASSETS $ 48,542$ 47,406 LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITYCURRENT LIABILITIES Accounts payable $ 1,663$ 1,654 Accrued interest 277256 Accrued non-income taxes 292249 Supplier financing arrangements 621917 Accrued and other liabilities 1,1091,246 Recourse debt 990899 Non-recourse debt 2,7272,688 Current held-for-sale liabilities —662 Total current liabilities 7,6798,571 NONCURRENT LIABILITIESRecourse debt 4,8024,805 Non-recourse debt 21,75220,626 Deferred income taxes 1,6351,490 Other noncurrent liabilities 2,8122,881 Noncurrent held-for-sale liabilities —391 Total noncurrent liabilities 31,00130,193 Commitments and ContingenciesRedeemable stock of subsidiaries 2,179938 EQUITYTHE AES CORPORATION STOCKHOLDERS' EQUITYCommon stock ($0.01 par value, 1,200,000,000 shares authorized; 859,711,007 issued and 711,922,815 outstanding at June 30, 2025 and 859,709,987 issued and 711,074,269 outstanding at December 31, 2024) 99 Additional paid-in capital 6,0705,913 Retained earnings (accumulated deficit) (79)293 Accumulated other comprehensive loss (836)(766) Treasury stock, at cost (147,788,192 and 148,635,718 shares at June 30, 2025 and December 31, 2024, respectively) (1,795)(1,805) Total AES Corporation stockholders' equity 3,3693,644 NONCONTROLLING INTERESTS 4,3144,060 Total equity 7,6837,704 TOTAL LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY $ 48,542$ 47,406 THE AES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in millions)(in millions) OPERATING ACTIVITIES:Net income (loss) $ (150)$ 153$ (223)$ 431 Adjustments to net income (loss): Depreciation, amortization, and accretion of AROs 354315691633 Emissions allowance expense 762417871 Loss (gain) on realized/unrealized derivatives 86(64)71(137) Loss on commencement of sales-type leases 1997220867 Gain on disposal and sale of business interests (70)(1)(69)(44) Impairment expense (reversals) (144)38(95)84 Loss on realized/unrealized foreign currency 24782478 Deferred income tax expense (benefit), net of tax credit transfers allocated to AES 13936149258 Tax credit transfers allocated to noncontrolling interests 2122621226 Other 100(313)220(210) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 125(7)26(239) (Increase) decrease in inventory (1)(41)(29)31 (Increase) decrease in prepaid expenses and other current assets 2994198133 (Increase) decrease in other assets 571387547 Increase (decrease) in accounts payable and other current liabilities (119)(75)(116)(160) Increase (decrease) in income tax payables, net and other tax payables 1(137)(82)(464) Increase (decrease) in other liabilities 58568374 Net cash provided by operating activities 9763921,521679 INVESTING ACTIVITIES:Capital expenditures (1,332)(1,685)(2,586)(3,833) Acquisitions of business interests, net of cash and restricted cash acquired (108)(16)(112)(73) Proceeds from the sale of business interests, net of cash and restricted cash sold ——511 Sale of short-term investments 1939352534 Purchase of short-term investments (18)(460)(36)(604) Contributions and loans to equity affiliates —(29)(1)(50) Purchase of emissions allowances (195)(35)(234)(91) Other investing 34(6)30(118) Net cash used in investing activities (1,600)(1,838)(2,882)(4,224) FINANCING ACTIVITIES:Borrowings under the revolving credit facilities 9412,2622,1284,003 Repayments under the revolving credit facilities (1,947)(1,545)(2,398)(2,582) Commercial paper borrowings (repayments), net (188)(29)67690 Issuance of recourse debt —950800950 Repayments of recourse debt ——(774)— Issuance of non-recourse debt 1,0391,6672,3323,798 Repayments of non-recourse debt (731)(1,811)(1,490)(2,726) Payments for financing fees (28)(44)(49)(75) Purchases under supplier financing arrangements 250222567708 Repayments of obligations under supplier financing arrangements (234)(539)(862)(1,055) Distributions to noncontrolling interests (254)(105)(338)(128) Contributions from noncontrolling interests 2017127497 Sales to noncontrolling interests 8931981,138323 Issuance of preferred shares in subsidiaries 444—452— Dividends paid on AES common stock (125)(122)(250)(238) Payments for financed capital expenditures (14)(12)(21)(19) Other financing (102)(10)(114)13 Net cash provided by financing activities 1451,1531,4623,759 Effect of exchange rate changes on cash, cash equivalents and restricted cash (4)(28)(5)(43) (Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale businesses 118(86)66(13) Total increase in cash, cash equivalents and restricted cash 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ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS We define EBITDA as earnings before interest income and expense, taxes, depreciation, amortization, and accretion of AROs. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, amortization, and accretion of AROs of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (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 or troubled debt restructuring, and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts. We define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment Tax Credits ("ITCs"), and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA 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 pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests, retire debt, or implement restructuring initiatives, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent 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. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to net income, which is determined in accordance with Months Ended June 30,Six Months Ended June 30, Reconciliation of Adjusted EBITDA and Adjusted EBITDA with Tax Attributes (in millions) 2025202420252024 Net income (loss) $ (150)$ 153$ (223)$ 431 Income tax expense (benefit) 167(35)184(51) Interest expense 352389694746 Interest income (70)(88)(139)(193) Depreciation, amortization, and accretion of AROs 354315691633 EBITDA $ 653$ 734$ 1,207$ 1,566 Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1) (253)(182)(387)(346) Less: Income tax expense (benefit), interest expense (income) and depreciation, amortization, and accretion of AROs from equity affiliates 45288162 Interest income recognized under service concession arrangements 14162933 Unrealized derivatives, equity securities, and financial assets and liabilities losses (gains) 133(53)132(138) Unrealized foreign currency losses (gains) 412(3)3 Disposition/acquisition losses 1266216719 Impairment losses (reversals) (87)23(54)49 Loss on extinguishment of debt and troubled debt restructuring 4181250 Restructuring costs 42—88— Adjusted EBITDA (1) $ 681$ 658$ 1,272$ 1,298 Tax attributes 376191562419 Adjusted EBITDA with Tax Attributes (2) $ 1,057$ 849$ 1,834$ 1,717 (1) The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA. NCI also excludes amounts allocated to preferred shareholders during the construction phase before a project becomes operational, as this is akin to a financing arrangement. (2) Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred to third parties. The tax attributes are related to the Renewables and Utilities SBUs. 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 pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (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 or troubled debt restructuring; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts. 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. 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 pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (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 or troubled debt restructuring; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts. The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to AES. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted PTC and Adjusted EPS better reflect the underlying business performance of the Company and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, and strategic decisions to dispose of or acquire business interests, retire debt, or implement restructuring initiatives, which affect results in a given period or periods. In addition, for Adjusted PTC, 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. Adjusted PTC and Adjusted EPS should not be construed as alternatives to income from continuing operations attributable to AES and diluted earnings per share from continuing operations, which are determined in accordance with GAAP. The Company reported diluted loss per share of $0.15 and $0.08 for the three and six months ended June 30, 2025. The Company reported diluted earnings per share of $0.39 and $0.99 for the three and six months ended June 30, 2024. For purposes of measuring earnings per share under U.S. GAAP, income available to AES common stockholders is reduced by increases in the carrying amount of redeemable stock of subsidiaries to redemption value and increased by decreases in the carrying amount to the extent they represent recoveries of amounts previously reflected in the computation of earnings per share. While the adjustment for the three and six months ended June 30, 2025 decreased earnings per share and the adjustment for the three months ended June 30, 2024 increased earnings per share, neither adjustment impacted Net income on the Condensed Consolidated Statement of Operations. For purposes of computing Adjusted EPS, the Company excluded the adjustment to redemption value from the numerator. The table below reconciles the income available to AES common stockholders used in GAAP diluted earnings per share to the income from continuing operations used in calculating the non-GAAP measure of Adjusted EPS. Reconciliation of Numerator Used for Adjusted EPS Three months ended June 30, 2025Six months ended June 30, 2025 (in millions, except per share data) LossShares$ per ShareLossShares$ per Share GAAP DILUTED LOSS PER SHARELoss available to The AES Corporation common stockholders $ (105)712$ (0.15)$ (59)712$ (0.08) Add back: Adjustment to redemption value of redeemable stock of subsidiaries 10—0.0210—0.01 NON-GAAP DILUTED LOSS PER SHARE BEFORE EFFECT OF DILUTIVE SECURITIES $ (95)712$ (0.13)$ (49)712$ (0.07) Restricted stock units —2——1— NON-GAAP DILUTED LOSS PER SHARE $ (95)714$ (0.13)$ (49)713$ (0.07) Reconciliation of Numerator Used for Adjusted EPS Three months ended June 30, 2024Six months ended June 30, 2024 (in millions, except per share data) IncomeShares$ per ShareIncomeShares$ per Share GAAP DILUTED EARNINGS PER SHAREIncome available to The AES Corporation common stockholders $ 282713$ 0.39$ 708713$ 0.99 Add back: Adjustment to redemption value of redeemable stock of subsidiaries (6)————— NON-GAAP DILUTED EARNINGS PER SHARE $ 276713$ 0.39$ 708713$ 0.99 Three Months Ended June 30, 2025Three Months Ended June 30, 2024Six Months Ended June 30, 2025Six Months Ended June 30, 2024 Net of NCI (1) Per Share (Diluted) Net of NCI (1)Net of NCI (1) Per Share (Diluted) Net of NCI (1)Net of NCI (1) Per Share (Diluted) Net of NCI (1)Net of NCI (1) Per Share (Diluted) Net of NCI (1) (in millions, except per share amounts)Income (loss) from continuing operations, net of tax, attributable to AES and Diluted EPS $ (95) $ (0.13)$ 276 $ 0.39$ (49) $ (0.07)$ 708 $ 0.99Add: Income tax expense (benefit) from continuing operations attributable to AES 148 (67) 144 (86) Pre-tax contribution $ 53 $ 209 $ 95 $ 622 Adjustments Unrealized derivatives, equity securities, and financial assets and liabilities losses (gains) $ 133 $ 0.18 (2) $ (53) $ (0.07) (3) $ 128 $ 0.19 (4) $ (138) $ (0.19) (5) Unrealized foreign currency losses (gains) 4 —12 0.01(3) —3 —Disposition/acquisition losses 125 0.18 (6) 62 0.08 (7) 167 0.23 (8) 19 0.03 (9) Impairment losses (reversals) (87) (0.12) (10) 23 0.03 (11) (54) (0.08) (12) 49 0.08 (13) Loss on extinguishment of debt and troubled debt restructuring 6 0.0120 0.03 (14) 16 0.0254 0.07 (15) Restructuring costs 42 0.06 (16) — —88 0.12 (17) — —Less: Net income tax expense (benefit)0.33 (18)(0.09) (19)0.37 (20)(0.09) (19) Adjusted PTC and Adjusted EPS $ 276 $ 0.51$ 273 $ 0.38$ 437 $ 0.78$ 609 $ 0.89(1) NCI is defined as Noncontrolling Interests. (2) Amount primarily relates to remeasurement of our investment in 5B of $48 million, or $0.07 per share, net unrealized derivative losses at the Energy Infrastructure SBU of $38 million, or $0.05 per share, and unrealized derivative losses on commodities at AES Clean Energy of $33 million, or $0.05 per share. (3) Amount primarily relates to unrealized gains on foreign currency derivatives at Corporate of $34 million, or $0.05 per share, and unrealized gains on cross currency swaps in Brazil of $25 million, or $0.03 per share. (4) Amount primarily relates to remeasurement of our investment in 5B of $48 million, or $0.07 per share, net unrealized derivative losses at the Energy Infrastructure SBU of $46 million, or $0.06 per share, and unrealized derivative losses on commodities at AES Clean Energy of $17 million, or $0.02 per share. (5) Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of $59 million, or $0.08 per share, unrealized gains on foreign currency derivatives at Corporate of $37 million, or $0.05 per share, and unrealized gains on cross currency swaps in Brazil of $28 million, or $0.04 per share. (6) Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $149 million, or $0.21 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 per share. (7) Amount primarily relates to day-one losses at commencement of sales-type leases at AES Renewable Holdings of $63 million, or $0.09 per share. (8) Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $149 million, or $0.21 per share, and AES Renewable Holdings of $9 million, or $0.01 per share, and losses on remeasurement of contingent consideration at AES Clean Energy of $12 million, or $0.02 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 per share. (9) Amount primarily relates to day-one losses at commencement of sales-type leases at AES Renewable Holdings of $63 million, or $0.09 per share, and the loss on partial sale of our ownership interest in Amman East and IPP4 in Jordan of $10 million, or $0.01 per share, partially offset by a gain on dilution of ownership in Uplight due to its acquisition of AutoGrid of $52 million, or $0.07 per share. (10) Amount primarily relates to the derecognition of the valuation allowance on a loan receivable accounted for under ASC 310 and the elimination of estimated costs to sell at Mong Duong of $127 million, or $0.18 per share, after reclassification to held and used, partially offset by impairments at AES Clean Energy of $29 million, or $0.04 per share. (11) Amount primarily relates to impairment at AES Brasil of $12 million, or $0.02 per share. (12) Amount primarily relates to the derecognition of the valuation allowance on a loan receivable accounted for under ASC 310 and the elimination of estimated costs to sell at Mong Duong of $127 million, or $0.18 per share, after reclassification to held and used, partially offset by impairments at AES Clean Energy of $54 million, or $0.08 per share, and at Mong Duong of $9 million, or $0.01 per share. (13) Amount primarily relates to impairment at Mong Duong of $22 million, or $0.03 per share, and impairment at AES Brasil of $12 million, or $0.02 per share. (14) Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $16 million, or $0.02 per share. (15) Amount primarily relates to losses incurred at AES Andes due to early retirement of debt $29 million, or $0.04 per share, and costs incurred due to troubled debt restructuring at Puerto Rico of $20 million, or $0.03 per share. (16) Amount primarily relates to impairments at AES Clean Energy Development that were the result of the Company-wide restructuring program of $38 million, or $0.05 per share. (17) Amount primarily relates to severance costs associated with the Company-wide restructuring program of $50 million, or $0.07 per share, and impairments at AES Clean Energy Development that were the result of the Company's restructuring program of $38 million, or $0.05 per share. (18) Amount primarily relates to income tax expense associated with the day-one losses on commencement of sales-type leases at AES Clean Energy Development of $95 million, or $0.13 per share, impairments at AES Clean Energy Development of $50 million, or $0.07 per share, remeasurement and downward adjustment of our investment in 5B of $28 million, or $0.04 per share, the selldown of AES Ohio of $13 million, or $0.02 per share, and net unrealized derivative losses at Integrated Energy of $18 million, or $0.03 per share. (19) Amount primarily relates to income tax benefits associated with the tax over book investment basis differences related to the AES Brasil held-for-sale classification of $59 million, or $0.08 per share, for the three and six months ended June 30, 2024. (20) Amount primarily relates to income tax expense associated with the day-one losses on commencement of sales-type leases at AES Clean Energy Development of $95 million, or $0.13 per share, impairments at AES Clean Energy Development of $57 million, or $0.08 per share, severance costs related to the Company-wide restructuring program of $23 million, or $0.03 per share, remeasurement and downward adjustment of our investment in 5B of $28 million, or $0.04 per share, net unrealized derivative losses at Integrated Energy of $19 million, or $0.03 per share, and the selldown of AES Ohio of $13 million, or $0.02 per share. The AES Corporation Parent Financial Information Parent only data: last four quarters (in millions) 4 Quarters Ended Total subsidiary distributions & returns of capital to Parent June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Actual Actual Actual Actual Subsidiary distributions(1) to Parent & QHCs $ 1,706 $ 1,447 $ 1,603 $ 1,424 Returns of capital distributions to Parent & QHCs 75 32 30 80 Total subsidiary distributions & returns of capital to Parent $ 1,781 $ 1,479 $ 1,633 $ 1,504 Parent only data: quarterly (in millions) Quarter Ended Total subsidiary distributions & returns of capital to Parent June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Actual Actual Actual Actual Subsidiary distributions1 to Parent & QHCs $ 557 $ 230 $ 715 $ 204 Returns of capital distributions to Parent & QHCs 44 3 28 — Total subsidiary distributions & returns of capital to Parent $ 601 $ 233 $ 743 $ 204 (in millions) Balance atJune 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Parent Company Liquidity(2) Actual Actual Actual Actual Cash at Parent & Cash at QHCs(3) $ 9 $ 151 $ 265 $ 6 Availability under credit facilities 2,185 1,526 1,782 335 Ending liquidity $ 2,194 $ 1,677 $ 2,047 $ 341(1) Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own activities but instead relies on its subsidiaries' business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding company. The reconciliation of the difference between the Subsidiary Distributions and Consolidated Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies. (2) Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus available borrowings under our existing credit facility. AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the non-recourse nature of most of AES' indebtedness. (3) The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs. Investor Contact: Susan Harcourt 703-682-1204, Media Contact: Amy Ackerman 703-682-6399, View original content to download multimedia: SOURCE The AES Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
6 days ago
US wants back millions in COVID relief from local governments over missing reports
JEFFERSON CITY, Mo. -- The U.S. Treasury is seeking to recoup COVID-19 pandemic relief funds from hundreds of local governments that received millions of dollars but never complied with requirements to report how they used the money. The federal government distributed $350 billion to state, local, territorial and tribal governments as part of the American Rescue Plan approved by Congress and President Joe Biden in 2021. More than 30,000 governments, from the largest state to the tiniest town, were to get a share. Governments had until the end of 2024 to obligate the money for specific projects and were supposed to file either quarterly or annual progress reports, depending on their population and how much money they received. Most complied. But as of January, about 1,000 mostly smaller governments had failed to file any reports with the Treasury detailing how they used a total of $139 million, according to an analysis by the U.S. Government Accountability Office. A GAO report released last week said the Treasury sent notices to the local governments seeking to recoup the money. As of June 24, a total of 740 local governments subsequently filed reports and will no longer be subject to repaying their funds, the Treasury said in a letter attached to the GAO report. Thirteen governments returned their funds to the Treasury. But that still left 235 local governments that had never filed a report nor returned their pandemic relief funds. The GAO told The Associated Press it does not have list of the specific governments that haven't complied with the reporting requirements. The Treasury has not responded to an AP request for a list of the 13 governments that returned their funds and those that still haven't reported how they used it. This is not the first time concerns have been raised about governments failing to disclose how they used their pandemic relief funds. The GAO reported in October 2023 that the Treasury had sent noncompliance notices to more than 3,500 local governments that hadn't filed progress reports on their pandemic relief funds. The Treasury at that time declined to provide the noncompliance letters to the AP. So the AP in January 2024 submitted a Freedom of Information Act request seeking copies of the noncompliance notices and related correspondence. The Treasury still has not fulfilled that request. In its most recent report, the GAO said the failure of local governments to file regular progress reports is limiting the Treasury's ability to determine whether they are spending the funds on allowable uses.
