AES CORPORATION

City or location Month XX, 20XX

AES CORPORATIONAES Gener Business Review

Felipe CeronChief Executive Officer, AES Gener S.A.

March 22, 2006

1www.aes.com

AES Gener Strategic OverviewContains Forward Looking Statements

Financial Goals

Revenue Growth

Gross Margin Growth

Earnings Per Share Growth

ROIC Improvement*

Cash Flow Growth

Subsidiary Distributions*

Restructuring Opportunities

Growth Goals

Platform Expansion

Greenfield Investment

Privatization/M&A

AES Goals AES 2008 Target AES Gener Role

--

$3.5 Billion

13-19% per Year

11%

--

--

--

--

--

--

Above Average

Below Average

Above Average

Average

Above Average

Increasing

Limited

Significant Opportunities

Significant Opportunities

Longer-Term Potential

* Non-GAAP financial measure. See Appendix.

2www.aes.com

Chile Highlights

Chile at a Glance

Currency Exchange Rate (3/14/06)Per Capita GDP (2004)Inflation Rate (2005)Economic DriversCapital Largest CityPopulation (2005 E)Sovereign Credit Rating

Chilean Peso (Ch$)US$1= Ch$527.1

US$7,0773.6%

Copper, Agriculture, Forestry, FishingSantiagoSantiago

16.3 millionA / Baa1

3www.aes.com

31 companies

90% private sector

20% AES share (capacity)

27 generators

Four self and cogenerating

12,253MW installed capacity

41% hydroelectric

59% thermal

Generators free to sell to:

Distribution companies at regulated prices

Large customers at freely negotiated prices

Generation

Five transporters

100% private sector

Transmission (> 23 kV)

Over 15,000 km of lines

Open access transmission

Tolls set every four years

Transportation Distribution Commercial Base

Chile Electricity Market Characteristics

39 companies

4.6 million customers

Distribution companies distribute 54% of the electric consumption of the country

Regulated public service

Exclusive geographic concessions for regulated customers

Responsible for maintenance and investment

More than 100 large users supplied directly by generation companies

Above 2MW:

Data from AES Gener.

Tariffs set every four years based on “model company”

Large customers can purchase energy directly from a generator or distribution company

Freely negotiated prices and conditions

4www.aes.com

Chile Generation Market Profile

www.aes.com

5%20%

19%

42%

14%

Endesa

AES Gener

Colbun

Other

Tractebel-Codelco

Total Installed Capacity = 12,254MW

Capacity Market Share

5www.aes.com

Colombia Generation Profile

24%

25%17%

8%

10%

10%6%

AES-Chivor

ISAGEN

Union Fenosa

EEPPM

www.aes.com

Capacity Market Share

Endesa

CORELCA

EEPPM: Empresas Públicas de MedellínISAGEN: ISAGEN S.A. E.S.P.CORELCA: Corporación Eléctrica de la Costa Atlántica

Total Installed Capacity = 13,348MW

Other

6www.aes.com

Chile Grid Overview

Northern Interconnected System (SING) 2005

Installed Capacity 3,625MW

Maximum Demand 1,533MW

Gross Production 12,657 GWh

Load Factor 86%

% Hydroelectric 1%

% Thermal 99%

% Population 6%

Central Interconnected System (SIC) 2005

Installed Capacity 8,629MW

Maximum Demand 5,764MW

Gross Production 36,344 GWh

Load Factor 76%

% Hydroelectric 57%

% Thermal 43%

% Population 93%

Santiago

Antofagasta

SIC

SING

7www.aes.com

Chile Electricity Demand GrowthU

S$ M

illion

0

20,000

40,000

60,000

80,000

100,000

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

0

10,000

20,000

30,000

40,000

50,000

60,000

GW

h

GDP Energy demand

Correlation between energy demand and GDP growth has increased in recent yearsEnergy demand is expected to continue growing by more than 5% per year

8www.aes.com

Colombia Electricity Demand Growth

High historic correlation between energy demand and GDP growth

International interconnections are expected to increase energy demand further in the future

US$

Milli

on

80,000

85,000

90,000

95,000

100,000

105,000

1997 1998 1999 2000 2001 2002 2003 2004

30,000

35,000

40,000

45,000

50,000

55,000

GW

h

GDP Energy demand

9www.aes.com

Regulated node price + value added cost

Contracts awarded in open season bid processes

Minimum demand requirement > 2 MW

Customers with demand between 0.5 and 2MW may select tariff class every four years

Unregulated freely negotiated price

Economic Dispatch Center

Distribution Companies

Substation1

Unregulated

SpotTransactions

Transmission andDistribution Customers

DistributionTransmission

Substation2

Substation3

Gencogas Gencodiesel

Gencohydro

Toll Payment

Dispatch based on lowest cost of production (marginal cost)

Spot price = marginal cost

Includes energy and capacity payments

Open access transmission

Toll payments for existing installations determined by regulator

Bids held for new expansions

Concessions granted for distribution and tariffs based on model company structure

Chilean Power Market

Gencocoal

Regulated

10www.aes.com

Chilean Power Market Organization

Ministry of Economy

Superintendence of Electricity & Fuels:

Supervises compliance

Unregulated Customers

Economic Dispatch Center:Orders dispatch

Experts Panel:Resolves conflicts

National Energy Commission:

Implements policies

Regulatory Bodies

GenerationCompanies

Transmission Companies

DistributionCompanies

Economic Dispatch Center Members

11www.aes.com

AES Gener History

1970-1981 1982-1989 1990-2000 2001-2005

1986 Corporación de Fomento de la Producción (CORFO) initiates the privatization process

1988 Privatization process completed

1989 Company name changes to Chilgener S.A.

2004 Argentina begins to limit natural gas exports to Chile

2005 New sector law enacted in Chile supporting generation model and regulated tariff increases

2005 Gener launches first new capacity investment since 2002

1996 Chilgener acquires Chivor generation business in Colombia

1998 Company name changes to Gener S.A.

2000 - 2001AES acquires 99% controlling interest in Gener

1970 Compaňía Chilena de Electricidad S.A., created in 1921, is nationalized

1981 Chilectra Generation S.A. is formed as one of three State-owned electricity sector companies

12www.aes.com

AES Gener Business Structure

Chivorhydro (dam

based)(1,000 MW)

100%

Operating assets

40% hydro58% coal

2% oil(682MW)

AES Gener S.A.

SIC SING

EVSAcogeneration

(42 MW)

ESSA79%

combined cycle

21% oil(479 MW)

Guacoldacoal

(304 MW)

Norgenercoal

(277 MW)

TermoAndescombined

cycle(643 MW)

Colombia

100% 100% 90% 50% 100% 100%

Note: Excludes unconsolidated non-Chile generation investments

13www.aes.com

AES Gener in Chile: Balanced Portfolio of Coal, Natural Gas & Hydro

HydroelectricCoalNatural GasOil

AES Gener (Parent)393MW coal271MW hydro19MW oil

Eléctrica Santiago90% AES Gener-owned379MW natural gas100MW oil

Norgener100% AES Gener-owned 277MW coal

TermoAndes (Argentina)100% AES Gener-owned 643MW natural gas

Santiago

Antofagasta

Buenos Aires

Guacolda50% AES Gener-owned304MW coal

Biomass

Energía Verde100% AES Gener-owned17MW forestry waste25MW oil

14www.aes.com

AES in Colombia: Generation

Chivor1,000MW hydro plant (8% of Colombia generation capacity)100% Gener-owned (acquired in 1996)

ChivorBogota

Barranquilla

Hydroelectric

15www.aes.com

SIC Capacity Dependent on Hydro… ...Resulting in Volatile Spot Prices

Gener Balanced Portfolio …Leads to

Total: 1,508MW (1)

Lower risk profile than competitorsAsset portfolio complementary to the system provides assurance of outputCompetitive advantage to capture long-term contracts All the upside of high hydrology years with limited downside

(1) Includes 100% of Electrica Santiago and Guacolda’s capacity.

Gas22%

Hydro60%

Coal11%

AES Gener SIC Asset Diversity

Hydro18%

Other11%

Gas25%

Coal46%

Price (US$/MWh)Other7%

0

80

160

US

$ / M

Wh

Marginal Cost Node Price1995 1997 1999 2001 2003 2005

16www.aes.com

SING Capacity 100% Thermal… ...Resulting in Less Volatile Spot Prices

Gener Balanced Portfolio …and Market Presence

Diversified thermoelectric fuel supply (gas & coal)Lower gas curtailment riskLong-term contracts with credit-worthy off takersCompany-owned transmission system with direct connection to large customers

Gas58%

Coal33%

AES Gener SING Asset Diversity

Gas70%

Coal30%

Prices (US$/MWh)Oil / Diesel9%

0

20

40

60

Jun-93 Jun-97 Jun-01 Jun-05

US

$/M

Wh

Marginal Cost

Total: 920MW

17www.aes.com

AES Gener Contract Revenue Model

Key CustomersChilectra and Chilquinta represent over 37% and 21% respectively, of AES Gener’s consolidated contracted sales in Chile2004 contract renegotiation with Minera Escondida extended two existing contracts through 2015 (172MW) and the addition of a third contract for up to 80MW

Chilquinta21%

Chilectra37%

Other Contracts15%

Minera Escondida15%

Consolidated ContractRevenue

Colombia12%

18www.aes.com

AES Gener Fuel Sources

Coal Natural Gas Fuel Oil Petcoke Biomass

Sourced From

Colombia, Indonesia,

Canada, New Zealand,

Australia, Chile

ArgentinaInternational

Market / Processed in

ChileUSA, Venezuela Chile

Transportation Method Ship Pipeline Truck Ship Conveyer Belt /

Truck

Distance 4,800-9,500 nautical miles

700 km to Santiago329 km to Salta < 100 km 3,900 nautical

miles < 100 km

Key SuppliersCMC, Noble,

Luscar, Ingesur,Glencore, BHP

Consorico Sierra Chata, YPF and

TecpetrolConsortium

Copec, Shell, YPFOxbow, AIMCOR,

SSM, Valero, Koch

Sawmills & Agricultural Waste

Fuel Flexibility (sulfur, BTU)

HHV, Sulfur, Ash, Moisture, HGI, Volatile

MatterHHV Sulfur, Particulate HHV, Sulfur, Ash

(Ni, Va, Ar), HGI Particulate

19www.aes.com

AES Gener Generation KPIsContains Forward Looking Statements

Key Performance Indicator (KPI)

Safety ExcellenceOSHA rateLost time accidents (LTA)

Equivalent availability factor (EAF)Non-fuel O&M (NFOM) cost per megawatt hourEquivalent net plant heat rate Btu/kWh (ENPHR) –Thermal plants Equivalent forced outage rate (EFOR)

Operational Excellence

20www.aes.com

AES Gener Performance Scorecard

Equivalent Availability Factor Non-Fuel O&M Expense (US$/MWh)

Getting Better

2002-2003 period marked by low dispatch conditions and cost cutting efforts2004-2005 focused steady improvements

94% 93%

85%88%

2002 2003 2004 2005

3.53 3.393.30 3.15

2002 2003 2004 2005

21www.aes.com

KPI - Generation EFOR Improvement

Cordillera Hydroelectric Complex2003 - YTD 2005

Top Decile

Getting Better

EFO

R

0.0%

0.5%

1.0%

2002 2003 2004 2005 YTD

Cordillera Complex

EFOR Improvement

Cordillera Complex sources of improvement:Implementation of new training program for plant operatorsImprovement in cooling systems

Results:98.6 % improvement

0.02%

0.42%

5.14%

0.04%

22www.aes.com

AES Gener Capital Structure ObjectivesContains Forward Looking Statements

Capital Structure Elements Target

Financial Debt to Capital Ratio

Credit Rating Objectives

S&P

Fitch

Moody’s

Interest Coverage

Fixed to Floating Rate

Average Maturity

50% to 55%

BB+ to Investment Grade

BB to Investment Grade

Ba3 to Investment Grade

> 3.0 x

85% fixed rate/15% floating rate

7 years

23www.aes.com

AES Gener Debt Summary

US Dollar88%

Colombian Peso8%

Chilean UF4%

Currency BreakdownSeptember 30, 2005

Interest Rate BreakdownSeptember 30, 2005

VariableRate21%

FixedRate79%

Amortization ScheduleAs of September 30, 2005

0

100

200

300

400

500

600

700

2006 2008 2010 2012 2014+

US

$ M

illio

n

24www.aes.com

Reprofiled Balance Sheet

Short Term vs. Long Term Debt(US$ Million)

Foreign Currency vs. Local Currency(US$ Million)

(1) 2005 data as of September 30, 2005

9421,2551,512 1,3841,884 891

34% 29%

8% 7% 7% 12%

66% 71%

92% 93% 93% 88%

0%

50%

100%

2000 2001 2002 2003 2004 2005 (1)

Short-term Long-term

1,2551,512 1,3841,884 891942

95% 98% 98% 98%

87% 88%

5% 2% 2% 2%

3% 4%

8%10%

0%

100%

2000 2001 2002 2003 2004 2005 (1)

USD Chilean UF Col$

50%

25www.aes.com

Gener Credit Rating Improvement

A-/A3

BBB+/Baa1

BBB/Baa2

BBB-/Baa3

B+/B1

B/B2

B-/B3

BB+/Ba1

BB/Ba2

BB-/Ba3

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2001 2002 2003 2004 2005

September 2005: S&P revised outlook

to positive October 2005: Moody’s places Gener & Chivor under review for

potential upgrade

Fitch Moody’s S&P Target

26www.aes.com

AES Gener Portfolio Diversified by Geography

Revenue Trend

$609$636$543$475

Balanced Revenues (1)

SIC51%

Colombia21%

SING21%

Other7%

0100200300400500600700

US

$ M

illio

n

2002 2003 2004 2005 (1)

SIC SING Colombia Other

(1) 2005 data as of September 30, 2005

27www.aes.com

AES Gener Financial Overview

(US$ Million)Nine Months

Ending September 30,

20052004

$636

$177

$65

$151

2003

$543

$183

$88

$0

$609

$148

$102

$11

Revenue

Gross Margin

Income Before Tax &Minority Interest

Distributions to AES Corporation

Note: Information is presented on an AES basis and is unaudited. Certain intercompany transactions may not be eliminated.

28www.aes.com

AES Gener Scenario Planning

Strategic IssuesFuel swapsAdditional purchases in Argentine marketAlternative use of diesel oil Generation toll agreements

Mitigation of Argentina Gas

Restrictions

Optimized commercial policy (reduction in contract levels and indexed prices)Development of back-up peaking plants (current turbine project)

Hydrology Risk

Strategic Opportunities

Development of new coal and hydro plants supported by long-term PPAs

Strong Demand Growth

Increase in regulated node pricesPublic bid processes for distribution demand with long-term fixed price contracts to promote new investmentProgressive phase-out of regulated prices

Favorable Regulatory

Environment

29www.aes.com

ESSA Gas Supply RestrictionsContains Forward Looking Statements

ESSA Fuel Supply 2004 – YTD 2006

Proactive Response

0%

20%

40%

60%

80%

100%

2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

Contract Purchases Swaps Gas Restriction Diesel

Fuel swap agreements

Gas purchase agreements

Utilization of diesel oil

Generation toll agreements

30www.aes.com

Chile Platform Expansion Opportunities

www.aes.com

Ventanas Plant, Chile 120MW diesel-fired power plant$37 million capital costStart-up second quarter 2006Supports peaking, fuel diversification and hydrology risk management strategiesFits existing generation tariff structure

Proposed coal-fired power plants200-250MW plants at existing Guacolda and Ventanas sites2009 Start-UpCombined capital costs $600 millionParticipating in Chilean RFP process

Contains Forward Looking Statements

Platform expansion revenue potential $175 million by 2010 (combined basis)Strong subsidiary dividends can continue

3www.aes.com

Appendix - Assumptions

Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to: 1) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; 2 ) businesses continue to operate in a manner consistent with or better than prior operating performance, including achievement of planned productivity improvements including benefits of global sourcing, and in accordance with the provisions of their relevant contracts or concessions; 3) new business opportunities are available to AES in sufficient quantity so that AES can capture its historical market share; 4) no major disruptions or discontinuities occur in GDP, foreign exchange rates, inflation or interest rates during the forecast period; 5) negative factors do not combine to create highly negative low-probability business situations; 6) business-specific risks as described in the Company’s SEC filings do not occur.

In addition, benefits from global sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and projected savings based on assumed spend volume which may or may not actually be achieved. These benefits will not be fully reflected in the Company’s consolidated financial results.

4www.aes.com

Appendix - DefinitionsFree Cash Flow - Net cash from operating activities less maintenance capital expenditures. Maintenance capital expenditures reflect property additions less growth capital expenditures.Lost Time Accident (LTA) - An incident in which the injured person is kept away from work beyond the day of the incident.Near Miss - An incident that occurred but did not result in any injury. In AES, we have expanded this to include unsafe conditions that have been observed.O&M - Operation and maintenance.Reliability Centered Maintenance (RCM) - An integrated maintenance methodology that optimizes among reactive, interval-based, condition-based, and proactive maintenance practices to take advantage of their respective strengths in order to maximize facility and equipment reliability while minimizing life-cycle costs. Return on invested capital (ROIC) - Defined as net operating profit after tax (NOPAT) divided by average capital. NOPAT is defined as income before tax and minority expense plus interest expense less income taxes less tax benefit on interest expense at effective tax rate. Average capital is defined as the average of beginning and ending total debt plus minority interest plus stockholders’ equity less debt service reserves and other restricted deposits.System Average Interruption Duration Index (SAIDI) - A measure of the cumulative duration of electric service forced and sustained interruptions experienced by customers each year, excluding “force majeure” events. SAIDI is calculated as the total number of customer minutes of sustained interruption divided by the number of customers served.System Average Interruption Frequency Index (SAIFI) - A measure of the number of outages per customer per year. SAIFI is calculated by dividing the total number of customer-sustained interruptions by the number of customers served.

5www.aes.com

Appendix – Reconciliation of Subsidiary Distributions(US$ Millions) Nine Months

EndedSep. 30,

2005

Quarter EndedYear EndedDecember 31,

$1905

195

2

--

2

197

(5)

$192

Mar. 31,2005

$170--

170

37

13

50

220

(13)

$207

Jun. 30,2005

$274

$274

Sep. 30,2005

$1,00846

1,054

242

0

242

1,296

(46)

$1,250

2003

$99113

1,004

116

11

127

1,131

(24)

$1,107

2004

Subsidiary distributions to parentNet distributions to/(from) QHCsTotal subsidiary distributions

Returns of capital distributions to parent

Net returns of capital distributions to/(from) QHCs

Total returns of capital distributions

Combined distributions & returns of capital received

Less: combined net distributions & returns of capital to/(from) QHCs

Total subsidiary distributions & returns of capital to parent

--274

--

--

--

274

--

$6345

639

39

13

52

691

(18)

$673

Note: On the regional financial slides included subsequently in this presentation series, subsidiary distributions to parent, which exclude returns of capital and project financing proceeds, have been referred to as “Distributions to AES Corporation.”