Allowance for Credit Losses

3 Months Ended

Mar. 31, 2026

ALLOWANCE FOR CREDIT LOSSES

The following table represents the rollforward of the allowance for credit losses for the periods indicated (in millions):


Three Months Ended March 31, 2026	Accounts Receivable		Financing Receivables		Other (1)		Total
CECL reserve balance at beginning of period	$	39	$	38	$	6	$	83
Current period provision	11		1		—		12
Write-offs charged against allowance	(9)		—		—		(9)


CECL reserve balance at end of period	$	41	$	39	$	6	$	86


Three Months Ended March 31, 2025	Accounts Receivable		Financing Receivables		Other (2)		Total
CECL reserve balance at beginning of period	$	52	$	15	$	29	$	96
Current period provision	13		—		—		13



CECL reserve balance at end of period	$	65	$	15	$	29	$	109

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(1)Primarily relates to credit losses allowance on Argentina receivables as of March 31, 2026.

(2)Primarily relates to credit losses allowance classified in Current held-for-sale assets and Noncurrent held-for-sale assets on the Condensed Consolidated Balance Sheets, and credit losses allowance on Argentina receivables as of March 31, 2025.

Following the implementation of customer billing system upgrades at our utilities in 2023 and 2024, a temporary pause in customer disconnections, certain collections efforts, and write-off processes contributed to increased provisions and allowance for credit losses throughout 2025. AES Indiana and AES Ohio reinstituted customer disconnections and write-off processes in March and June 2025, respectively. The resumption of these activities resulted in increased write-offs in the current period.