AES Wolf Hollow Completes $285 Million Project Financing; 730 MW Gas-Fired Power Facility Under Construction.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 3, 2001

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Wolf Hollow, L.P., has achieved financial closing of its $285 million bank loan arranged by KBC Bank, N. V. for its 730 megawatt gas-fired combined cycle facility.

The wholly-owned AES facility is currently under construction in Granbury, Texas, 35 miles southwest of Fort Worth. Funding occurred simultaneously with financial closing and resulted in a cash distribution to The AES Corporation of $177 million.

The power facility is being designed and built by National Energy Production Corporation (NEPCO), a subsidiary of Enron. The plant features two Mitsubishi 501G gas turbines, a steam turbine and two Deltak HRSGs. Construction of the facility began in November 2000 and continues on schedule. Commercial operation is expected in October 2002.

Half of the electrical output from AES Wolf Hollow will be sold through a 20-year power purchase agreement with Exelon Generation Company, L.L.C., and the remainder will be marketed by AES NewEnergy, Inc., a wholly-owned affiliated company.

The project has secured a full requirements gas supply and firm gas transportation for delivery of gas to the plant. Kerry Yeager, Project Director for AES Wolf Hollow, commented, "With the broadest community support imaginable, AES has been able to develop one of the cleanest and most efficient electrical generating stations in Texas. In the Wolf Hollow project, AES continues it's goal to serve people though providing vital energy while respecting the needs of the community by being a good citizen to that community."

Dennis Bakke, President and Chief Executive Officer of AES, stated, "We believe that this business can compete effectively to supply customers in the newly restructured Texas market."

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Cameroon, Canada, Chile, China, Colombia, Czech. Republic, Dominican Republic, El Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and eighty one facilities totaling over 60 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 18 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.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

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.