LNG Review

AES CORPORATION Aaron Samson

Director, LNG Projects

December 11, 2006

Safe Harbor Disclosure

Certain statements in the following presentation regarding AES’s business operations

may constitute “forward looking statements.” Such forward-looking statements include,
but are not limited to, those related to future earnings, growth and financial and
operating performance. Forward-looking statements are not intended to be a guarantee
of future results, but instead constitute AES’s current expectations based on reasonable
assumptions. Forecasted financial information is based on certain material
assumptions. These assumptions include, but are not limited to continued normal or
better levels of operating performance and electricity demand at our distribution
companies and operational performance at our contract generation businesses
consistent with historical levels, as well as achievements of planned productivity
improvements and incremental growth from investments at investment levels and rates
of return consistent with prior experience. For additional assumptions see the Appendix
to this presentation. Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other factors. Important
factors that could affect actual results are discussed in AES’s filings with the Securities
and Exchange Commission including but not limited to the risks discussed under Item
1A “Risk Factors” in the Company’s 2005 Annual Report on Form 10-K as well as our
other SEC filings. AES undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

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AES LNG Regasification Opportunity
Contains Forward Looking Statements

US Projected Natural Gas Demand Advanced Development

Trillion cubic feet
Ocean Cay, Bahamas
28
ƒ 2010 expected COD
ƒ 0.9 Bcf per day
LNG imports ƒ 7.0 Bcf storage
24
Sparrows Point, Baltimore
ƒ 2011 expected COD
20 ƒ 1.5 Bcf per day
ƒ 10.5 Bcf storage
Conventional sources
16 Early Development

Battery Rock, Boston

12
ƒ 0.8 Bcf per day
2005 2010 2015 2020 2025 2030
ƒ 6.0 Bcf storage
Source: Energy Information Administration.
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Market vs. Production Area LNG Terminals
Contains Forward Looking Statements

Natural Gas Basis Differentials AES LNG Strategy

to Henry Hub $/MMBtu (1)
ƒ Site regasification terminals in
market areas, not production
areas
+$1.05
ƒ Local basis in market areas
trades at substantial premium to
+0.89 production areas because of
avoided transport charges
+$0.38 ƒ Higher valued markets will attract
supply, realize high capacity
-$0.10 +$0.61
factors
Hawaii -$0.38 ƒ Difficulty of siting in market areas
is more than compensated by
higher basis
Existing Terminal
Market Area
Proposed AES LNG Terminal
(1) Source: Platt’s Historical “Gas Daily” cash basis numbers using a split year Nov ’03-Oct ’05; excludes West Coast markets.
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East Coast LNG Economic Advantage
Contains Forward Looking Statements
Gross Margin Potential
Assumptions
for Operator & Supplier $MM
1 Bcf per day Terminal ƒ Sale of gas at Henry Hub
750 ($6/MMBtu) + local basis
ƒ Purchase of gas at 10%
discount to Henry Hub
500
ƒ Aggregate margin potential
at market area terminals
250 could be multiples higher
than Gulf of Mexico due to
basis
0
Gulf Coast East Coast
Basis
MMBtu -$0.38 to -$0.10 +$0.38 to +$1.05

Sources: Platts Historical “Gas Daily” cash basis numbers using a split Nov ’03-Oct ’05; AES estimates.
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AES LNG Experience

AES Andres, Dominican Republic

ƒ Combined LNG regasification terminal
and 319 MW combined cycle power
plant developed by AES
ƒ Built to US standards
ƒ 3.5 Bcf storage
ƒ Dedicated LNG ship berth
ƒ 0.24 Bcf per day
ƒ 20 year LNG supply contract with BP
ƒ Received first cargo in February 2003

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Ocean Cay, Bahamas
Contains Forward Looking Statements

ƒ Import terminal and regasification

Ft.
facility located on uninhabited
Lauderdale
island in Bahamas
AES Ocean ƒ Subsea pipeline to gas
Express Pipeline constrained southern Florida
market
ƒ Construction expected to begin in
Miami 2007 with COD in 2010
ƒ Approvals for US facilities
AES Ocean received:
Cay Pipeline
Florida – FERC certificate
– Florida State, county, local
Ocean Cay agreements
ƒ Finalized Heads of Agreement
Bahamas
with Bahamian government;
Existing pipeline execution pending draft
regulations
Proposed pipeline
ƒ 65% AES ownership interest
LNG terminal
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Sparrows Point, Baltimore
Contains Forward Looking Statements

ƒ Import terminal and regasification

Harrisburg Transco facility on site in Baltimore county
(former Bethlehem steel facility)
Columbia ƒ 88 mile pipeline to interconnection
Pennsylvania Philadelphia with three interstate pipelines
Texas Eastern – Texas Eastern
– Columbia
New Jersey – Transco
Maryland
ƒ Access to liquid Mid-Atlantic
market, including sales into New
Baltimore
Delaware York
ƒ Construction expected to begin in
2008 with COD in 2011
ƒ Prefiling stage with FERC;
Existing pipelines
application expected January 2007
ƒ 100% AES ownership interest
Proposed pipeline
LNG terminal
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Battery Rock, Boston
Contains Forward Looking Statements

ƒ Import terminal and regasification

facility situated on one of the outer
Boston Harbor islands
ƒ Only 1.2 miles to existing pipeline
ƒ Access to Northeast markets
Boston Harbor ƒ Site control must come via
legislative approval and bid
process
Outer Brewster Island
ƒ Pipeline connection via third party

Existing pipeline
Proposed pipeline
LNG terminal
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Characteristics of AES LNG Investments

Revenues ƒ Preferred structure: largely terminal use agreements (tolling)

with excess capacity for market gas sales

Cost of Sales ƒ Nominal operating expenses

Capital
ƒ Tanks, pipeline, vaporizers, etc.
Expenditures

Leverage ƒ Non-recourse financing

ƒ Tolling provides stable, predictable cash flows

Cash Flows
ƒ Market sales provide upside

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