AES Puerto Rico Completes $815 Million Financing; Construction for the 454 MW Circulating Fluidized Bed Facility Began in November 1999.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--June 1, 2000

The AES Corporation (NYSE: AES) announced today that its subsidiary, AES Puerto Rico, L.P., has 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.

The financing is comprised of a combination of senior bank debt and bonds. The senior bank facility has been co-led by ABN AMRO Bank NV, Credit Lyonnais and TD Securities (USA) Inc. The $195 million bond issuance was managed by Goldman Sachs & Co. The bonds received a Baa2 rating from Moody's Investors Service and BBB from Fitch IBCA.

The Puerto Rico Electric Power Authority (PREPA) will purchase the 454 MW electrical output from the facility under a 25-year power purchase agreement. Phillips Puerto Rico Core Inc., a subsidiary of Phillips Petroleum Company, will purchase the steam output for its neighboring petrochemical facility.

Duke/Fluor Daniel Caribbean S.E. began construction on the facility in November 1999 under a lump sum turnkey contract. The project is expected to commence commercial operation in mid-2002.

Katherine Oster, Project Director of AES Puerto Rico, commented, "We are very pleased to bring the first solid fuel-fired power plant to Puerto Rico and help reduce Puerto Rico's dependence on oil. We are proud to be providing PREPA low cost power for years to come from the cleanest coal-fired facility in the world."

Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "The completion of this financing culminates years of collaborative efforts between AES and PREPA to serve the people of Puerto Rico with clean, safe, reliable, and low cost power. We love Puerto Rico."

Business development milestones in 2000 include the following:

-- 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 April, AES announced offers to acquire 51% of the

outstanding ordinary shares of C.A. La Electricidad de Caracas

(BVC:EDC; OTC:ELDAY), including shares represented by American

Depositary Shares (ADSs), at a price of U.S. $23.50 per ADS.

-- 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 Sayreville, New

Jersey.

-- In February, AES announced that it had entered into an

agreement to acquire a 59% stake in the 1,000 MW hydroelectric

facility of Hidroelectrica Alicura S.A. ("Alicura") in

Argentina from Southern Energy, Inc. ("SEI").

-- 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 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 and the United States.

The company's generating assets include interests in one hundred and twenty-five facilities totaling over 44 gigawatts of capacity. AES' electricity distribution network has over 954,000 km of conductor and associated rights of way and sells over 114,000 gigawatt hours per year to over 15 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.