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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): April 12, 1999
THE AES CORPORATION
(exact name of registrant as specified in its charter)
DELAWARE 333-15487 54-1163725
(State of Incorporation) (Commission File No.) (IRS Employer Identification No.)
1001 North 19th Street, Suite 2000
Arlington, Virginia 22209
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(703) 522-1315
NOT APPLICABLE
(Former Name or Former Address, if changed since last report)
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Item 5. Other Events
On April 9, 1999, the AES Corporation (the "Registrant") issued the press
release attached as Exhibit 1 to this report and incorporated herein by
reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE AES CORPORATION
Date: April 12, 1999 By /s/ William Luraschi
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(signing officer)
FOR IMMEDIATE RELEASE
AES THAMES AGREES TO PARTIAL CONTRACT PREPAYMENT
ARLINGTON, VA, April 9, 1999 - The AES Corporation (NYSE:AES) announced today
that its subsidiary, AES Thames, Inc., has agreed to a partial prepayment of
future electricity sales under its power sales agreement with Connecticut Light
& Power Company ("CL&P"). The power sales agreement contains the detailed sales
conditions for the electric output of the 181 MW AES Thames coal-fired,
fluidized bed cogeneration facility located in Uncasville, Connecticut that
commenced commercial operations in March, 1990.
Under the agreement, CL&P will prepay for future electricity sales that will
subsequently be delivered under the terms of the power purchase agreement and
will result in significantly reduced electricity prices charged by, and cash
flow to, AES Thames beginning in 2001. The prepayment of approximately $549
million, which is expected to be made in January 2000, will be recognized by AES
Thames over the remaining 16 year term of the contract. Electricity rates under
the contract will be reduced approximately 50%. Successful completion of the
transaction is subject to the negotiation and execution of definitive
documentation, the approval of the Connecticut Department of Public Utility
Control, the successful issuance of a sufficient amount of rate reduction bonds
pursuant to Connecticut's electricity restructuring laws and the receipt of
various other approvals.
This agreement is one part of a larger effort in Connecticut to restructure
their electricity sector. The goal of the restructuring is to reduce overall
electric rates and transition to the competitive market for the generation of
electricity. Legislation enabling the restructuring was passed by the
Connecticut General Assembly and signed into law by Governor Rowland in May of
last year.
Dan Rothaupt, President of AES Thames, Inc., stated, "This agreement is a
significant step in the progress being made towards restructuring Connecticut's
power industry. The securitization provisions in the Connecticut restructuring
legislation provides an important new tool to create ratepayer savings. This
agreement will provide substantial net savings to CL&P's ratepayers over the
remaining term of the contract."
Dennis W. Bakke, President and CEO of AES, stated, "We believe that the
agreements reached in this restructuring process represents a fair approach to a
transition to a more competitive electric market in Connecticut. We appreciate
the forward looking steps taken by our customer and the State. The prepayment
structure, as opposed to a contract buyout, was important to us because it
allows us to continue to serve the people of Connecticut with clean, reliable
and low cost electricity."
The AES Corporation is a leading global power company that currently owns or has
an interest in ninety four power facilities, totaling over 28,000 MW, in the
United States, Canada, Australia, Argentina, Brazil, Dominican Republic, India,
Pakistan, the Netherlands, Hungary, Kazakhstan, Mexico, China, and the United
Kingdom. AES also distributes electricity to over 13 million customers in
Brazil, Argentina, El Salvador and Georgia. 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. The AES Corporation is dedicated to
providing safe, clean, low-cost electricity worldwide in a socially responsible
way.
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