AES · 10-Q · 2026Q3 · Full report

Utilities Segment Performance

AES CORP · 2026-11-03 · Importance 46 · Surprise 42

For the three months ended September 30, 2026, Utilities SBU Operating Margin increased $73 million and Adjusted EBITDA increased $56 million. Higher retail rates following AES Ohio’s 2024 DRC Settlement, implemented in November 2025, contributed $42 million to quarterly margin growth, and higher demand contributed $26 million. Quarterly Adjusted PTC increased $64 million, including $16 million from realized tax attributes primarily related to the Petersburg Energy Center project. For the first nine months, Operating Margin increased $173 million and Adjusted EBITDA increased $123 million; the principal margin drivers were $109 million from higher retail rates, $56 million from increased recovery of transmission, distribution, and renewable project costs, and $34 million from higher demand, partly offset by $17 million of higher fixed costs.

Key facts

• AES Utilities revenue increased $342 million in the first nine months of 2026, including $132 million from higher retail rates following AES Ohio's 2024 DRC Settlement, $122 million from transmission and rider revenues, and $88 million from weather-driven higher retail demand. source
• AES Utilities revenue increased $151 million in the third quarter, including $67 million from higher retail demand, $48 million from higher retail rates following AES Ohio's November 2025 2024 DRC Settlement, and $43 million from transmission and rider revenues. source
• Utilities Adjusted PTC for the three months ended September 30, 2026 increased $64 million due to the Operating Margin drivers and $16 million from realized tax attributes primarily related to the Petersburg Energy Center project in the current year. source
• Utilities Operating Margin for the nine months ended September 30, 2026 increased $173 million. source
• Utilities Adjusted EBITDA for the nine months ended September 30, 2026 increased $123 million, primarily due to the Operating Margin drivers, adjusted for NCI, including the impact of the AES Ohio selldown in the second quarter of 2025. source
• Utilities Adjusted PTC for the nine months ended September 30, 2026 increased $131 million, primarily due to the Operating Margin drivers. source
• Utilities Operating Margin for the three months ended September 30, 2026 increased $73 million. source
• Utilities Adjusted EBITDA for the three months ended September 30, 2026 increased $56 million, primarily due to the Operating Margin drivers and adjusted for NCI. source