AES Seeks Permits to Build 500 MW in California; New Facilities Would Help Relieve Future Power Shortages.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) today announced it is preparing applications for permits for new power plants in California that would provide up to 500 MW and help increase the supply of electricity across the state.

AES has started the process to submit applications to the California Energy Commission and South Coast Air Quality Management District for permits to construct and operate new generation at up to three of its existing sites in Southern California.

"The new power plants will enable AES to increase its electrical supply in California and help alleviate future electricity shortages in the state," said Mark Woodruff, Vice President of AES for North America-West. "We are encouraged by the Governor's vision for the future of the electricity industry in California and look forward to being part of the solution to California's future electricity needs," said Woodruff.

The new, flexible plants will be designed to meet the growing electricity needs of Californians during times of greatest demand and will reduce the risk of power shortages. AES intends to build the new plants once a majority of the output has been sold under contract to customers.

By locating the new facilities on sites where AES currently has established generating plants, AES expects to benefit from the expedited siting rules approved last year by the legislature. Because the proposed new facilities will be located in Southern California, AES believes they will improve congestion of the local transmission grid.

AES currently has four natural gas fired generation plants in Southern California, all equipped with state-of-the-art emission controls, and two biomass fired plants, all under long term contracts. The company has been a power supplier in the state since 1987.

About AES

AES is a leading global power company, with 2003 sales of $8.4 billion. AES operates in 27 countries, generating 45,000 megawatts of electricity through 113 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at [e-mail].