The Aes Corporation
The AES Corporation is a global power company with operations in 27 countries
on five continents. A Delaware corporation formed in 1981, AES is a holding company
that, through its subsidiaries, operates in two principal businesses, generation
and utilities. The generation business is comprised of our contract generation
and competitive supply segments and the utilities business is comprised of our
large utilities and growth distribution segments. The Company's generating assets
include interests in 120 facilities in 25 countries totaling approximately 44
gigawatts of capacity. AES's electricity distribution networks sell approximately
88,890 gigawatt hours per year.
We believe that the generation and distribution of electricity are essential
services required in all industrialized societies. AES is committed to helping
meet the world's need for electricity by supplying power from our existing portfolio,
as well as by growing our portfolio through the development and construction
of new power plants and through selective acquisitions. AES believes that being
a large participant in the global power sector gives us the best chance to accomplish
our goals. Some of the benefits of being a large organization are the ability
to take advantage of scale and to have the resources to develop the best operating
and management practices, which will increase overall Company efficiency and
productivity. By maintaining a substantial geographic footprint, the Company
is positioned to pursue opportunities in those markets with the most favorable
characteristics for new investment, namely those having a large and growing
need for power. We target specific countries or major geographic regions as
areas of primary focus, and seek to build sufficient knowledge and experience
in order to increase our ability to successfully compete, and ultimately grow
our businesses, in those targeted markets. We believe that this approach also
allows us to more efficiently identify and manage the risks inherent in our
business.
AES Operates Two Principal Businesses: Generation and Utilities
We build, acquire, own and operate power generation and electricity distribution
facilities worldwide. To enhance operational efficiencies across the company,
we are organized along two principal lines of business: generation and utilities.
The generation business unit encompasses our contract generation and competitive
supply segments. These segments generate and sell electricity and related products
to utilities or other wholesale or commercial buyers. Performance drivers for
these businesses include plant reliability and fuel and fixed cost management.
Growth is largely tied to securing new power purchase agreements and expanding
capacity.
The utilities business unit encompasses our large utilities and growth distribution
segments. These segments sell electricity to residential, business and municipal
customers, typically through integrated transmission and distribution systems.
Performance drivers for these businesses include providing reliable service,
managing working capital, obtaining tariff adjustments and appropriate regulatory
treatment for new investments and, in developing countries, reduction of commercial
and technical losses.