AES To Generate 393 MW At $202 Million Refurbished Power Plant in Wales.

ARLINGTON, Va.--(BUSINESS WIRE)--May 14, 1999--

Also Completes Acquisition of Ecogen Plants in Australia

The AES Corporation (NYSE: AES) announced today that its subsidiary, AES Electric, has completed a $202 million non-recourse project financing for the refurbishment, upgrade and environmental improvement of Fifoots Point, its 393 MW coal-fired power plant in Newport, South Wales, United Kingdom.

The credit facility for the financing has been solely under-written by Deutsche Bank AG.

Under previous ownership, the Fifoots Point power plant ceased operation in 1995. Subsequently, AES purchased the facility intact from a demolition contractor in January 1998. The plant is being comprehensively refurbished, capacity is being expanded, and emission control technology added to make it one of the cleanest coal-fired power plants in the United Kingdom.

Refurbishment of the plant started in March 1999 and is scheduled to be complete in April 2000. The entire output of the plant will be sourced locally under a 10 year, hedged coal supply contract. The power plant will be operated by a subsidiary of AES Electric. The project company, AES Fifoots Point Ltd., is 100 percent owned by AES Electric.

This AES business will be the first coal-fired merchant power plant in the United Kingdom to be project financed.

Michael Armstrong, head of AES Electric commented, "We are extremely pleased with the structure that Deutsche Bank provided for the financing. The project greatly enhances our portfolio of power plants in the United Kingdom."

Dennis W. Bakke, President and Chief Executive Officer, commented, "This project is another example of innovative AES people at work. We are successfully giving new life to this mothballed power station and were able to shape the business in a way that allowed for a non-recourse financial structure."

AES also announced today that it completed on May 7 the purchase of the two Ecogen Energy power plants from the government of Victoria, Australia for approximately $227 million. The acquisition was supported by a non-recourse project finance facility jointly arranged by Nations Australia Bank, SG Australia, and West LB.

Business development milestones in 1999 include the following:

-- In February, a subsidiary of AES executed a Power Purchase

Agreement ("PPA") with Williams Energy Marketing and Trading

Company, a subsidiary of The Williams Company, Inc., for the

entire output of the planned 700 MW AES Ironwood power generating

facility.

-- In February, a subsidiary of AES was selected by the Hungarian

utility, the MVM, to build, own and operate a 190 MW gas-fired

combined cycle power plant in eastern Hungary.

-- In March, a subsidiary of AES won a bid for two gas-fired power

stations in Australia totaling 966 MW.

-- In April, AES Thames reached agreement to a partial prepayment of

future electricity sales with Connecticut Light & Power Company

(CL&P).

-- In April, a subsidiary of AES won a bid to acquire 50 percent of

the shares of Empresa Distribudora Electrica Este (EDE Este), an

electric distribution company in the Dominican Republic.

-- In May, AES completed the financing of six power plants it

purchased in New York from NGE Generation, Incorporated ("NGE")

for $953 million.

AES is a leading global power company that currently owns or has an interest in ninety power facilities totaling over 27,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Pakistan, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom. AES also distributes electricity to nearly 13 million customers.

In addition to having assets in excess of $8 billion, the Company has more than $5 billion of projects in construction or late stages of development. 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.