AES Initiates Construction of $340 Million AES Andres in Dominican Republic; Project Consists of 300 MW Plant and Liquefied Natural Gas Import Terminal.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 28, 2000

The AES Corporation (NYSE: AES - news) announced today that it had begun construction on a $340 million electric power plant and liquefied natural gas ("LNG") importing facility located in the Dominican Republic.

The wholly owned AES facility, named AES Andres, will be located 30 km east of Santo Domingo, and when completed, will consist of a 300 megawatt gas-fired combined cycle plant co-located with a LNG importing terminal. The power plant will feature a model 501F gas turbine that is being supplied by Mitsubishi Heavy Industries.

LNG for the project will be supplied by BP under a twenty year fuel supply agreement. Chicago Bridge & Iron has been selected to construct the LNG terminal portion of the facility. Construction is expected to take 24 months. Electrical output from AES Andres will be marketed primarily under long term contracts to electric distribution companies in the Dominican Republic.

Other AES businesses in the Dominican Republic include Los Mina, a 210 MW simple cycle electric power station (100 percent owned by AES), and the recently acquired electric distribution company, EDE Este, which serves over 2 million people in the eastern region of the country (50 percent owned by AES).

Ms. Sarah Slusser, Vice President of AES, said, "AES's commitment to the Dominican Republic began with our investments in Los Mina and EDE Este. These businesses, coupled with the initiation of the AES Andres power plant and gas terminal, will allow us to reduce the cost of electricity to consumers and continue to provide clean, reliable energy in a socially responsible way. We are proud to be the first company to develop a project of this kind in this hemisphere, outside of the US, and are confident that it will enable us to fulfill our mission to serve the people of the Dominican Republic for many years to come."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We are very excited about increasing our presence in the Dominican market and are delighted to be the first supplier of natural gas to the country. We feel that this initiative will enhance the economic, social and environmental well-being of the people of the Dominican Republic. AES Andres will introduce fuel diversification to the country and help to significantly reduce their dependence on oil."

Business development milestones in 2000 include the following:

-- In August, AES completed the acquisition of a 59% stake in the 1,000 MW
hydroelectric facility of Hidroelectrica Alicura S.A. ("Alicura") in Argentina
from Southern Energy, Inc. ("SEI") and its partners.

-- In August, AES and REI announced that they have entered into an agreement
whereby a subsidiary of AES will acquire Reliant Energy International's
interest in El Salvador Energy Holdings, S.A. ("ESEH"), which owns three
distribution companies in El Salvador.

-- In August, subsidiaries of AES issued approximately $1 billion of
non-recourse project bonds to refinance outstanding debt at the Drax Power
Station, located in North Yorkshire, England.

-- In August, a subsidiary of AES entered into an agreement whereby AES will
acquire the 49% interest held by TransCanada PipeLines Limited in the Songo
Songo Gas-to-Electricity Project in Tanzania.

-- In July, AES and IPALCO Enterprises Inc. announced that they entered an
agreement whereby AES will acquire IPALCO Enterprises, Inc.

-- In June, AES acquired approximately 87% of the stock of C.A. La Electricidad
de Caracas, an integrated electricity company serving Caracas, Venezuela.

-- In June, a subsidiary of AES completed an $815 million non-recourse
financing for a circulating fluidized bed coal-fired facility currently being
built on the south coast of Puerto Rico.

-- In May, a subsidiary of AES acquired 100% of Tractebel Power Ltd., ("TPL")
from Tractebel S.A. With this transaction, AES owns approximately 92% of
NIGEN's common stock.

-- In May, AES announced that it won a bid to purchase a 70% interest in the
1,580 MW Mohave Generating Station in Laughlin, Nevada for approximately $667
million.

-- In April, AES announced it intends to launch a tender offer to acquire all
outstanding common and preference shares of Brazilian generation company
Compania de Geracao de Energia Eletrica Tiete ("Tiete").

-- In March, a subsidiary of AES acquired for $8 million, GeoUtilities Inc., an
internet-based superstore for energy, telecom and other vital services.

-- In March, a subsidiary of AES completed a financing associated with 823 MW
of generating facilities in the Republic of Georgia. The financing included the
acquisition of the 600 MW Gardabani thermal plant and the establishment of
25-year concessions for the Khrami I and II hydro stations, which have a
combined capacity of 223 MW.

-- In March, a subsidiary of AES completed a $440 million non-recourse project
financing for AES Red Oak, an 832 MW natural gas-fired combined cycle plant in
Sayerville, New Jersey.

-- In February, AES announced that a subsidiary had reached an agreement with
the Bulgarian state-owned electric utility NEK, that will allow AES to build,
own, operate and transfer a $750 million lignite-fired power plant.

-- In January, a subsidiary of AES agreed to acquire 59% of the outstanding
preferred (non-voting) shares of Eletropaulo S.A. ("Eletropaulo").

-- In January, a subsidiary of AES and Caterpillar Inc. reached a service
agreement for multiple energy products that will result in the construction of
a 45 MW cogeneration plant in Mossville, Illinois.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, China, Dominican Republic, El Salvador, Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and thirty two facilities totaling over 47 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

For more general information visit our web site at www.aesc.com or contact investor relations at [e-mail]. The list aes-pr-announce is an automated mailing list and can be found on the investing page of our web site. Those who subscribe to this list will receive updates when AES issues a press release.