City of Ontario, Calif., Selects NewEnergy to Supply Electricity and Energy Services.

LOS ANGELES--(BUSINESS WIRE)--Aug. 16, 1999--

The City of Ontario, Calif., has selected NewEnergy as its energy service provider, awarding a one-year contract to supply approximately 16,000 MWh of electricity to qualifying city facilities and designating NewEnergy the provider of energy efficiency services to the City as well.

"The City was seeking someone who could provide integrated services, and NewEnergy easily met our needs," said Mayor Gary Ovitt for the City of Ontario. "We're very excited about beginning this relationship with NewEnergy, and look forward to working with them to lower the City's energy expenses and begin better managing how we use energy."

Under the terms of the contract, NewEnergy will also provide metering services and consolidated billing for the 15 city accounts covered by the award, as well as billing services for nearly 500 additional accounts that will not receive electricity from NewEnergy. Additionally, the City of Ontario has an option to purchase site generation products -- which allow on-site generation of electricity -- for its facilities from NewEnergy.

"This contract award will lower the city's costs, providing better value to its residents and taxpayers," said Michael R. Peevey, president and chief executive officer of NewEnergy. "I hope more government entities take advantage of the savings possible in the competitive market in California and around the country. We are pleased to add the City of Ontario to our family of customers and hope this relationship will expand in the years to come."

NewEnergy Inc. (formerly New Energy Ventures) is an AES company. AES Corp. (NYSE:AES) is a leading global power company that currently owns or has an interest in 105 power facilities totaling over 31,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, the Dominican Republic, Panama, Mexico, Pakistan, India, Bangladesh, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

AES also distributes electricity to nearly 14 million customers. In addition to having assets in excess of $10 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.

NewEnergy is America's largest energy service provider. Formed in 1995 to serve customers in every state where a competitive energy market is emerging, this rapidly growing technology-based energy company is active today throughout the United States.

With headquarters in Los Angeles, it has regional offices in Austin, Texas; Boston; Chicago; New York; Philadelphia; Phoenix; Tucson, Ariz.; and the San Francisco Bay area. NewEnergy strives to help its customers increase their profitability through integrated, high-value energy solutions. Its services include energy buying for its customers, energy efficiency services, site generation, and low-cost supply of energy-related equipment and supplies.

More information on NewEnergy and its products and services is available at www.newenergy.com.