AES 2Q07 Review

Second Quarter 2007 Financial Review

August 10, 2007

AES CorporationSecond Quarter 2007 Financial Review

AES Corporation 1


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 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 Annual Report on Form 10-K/A for the year ended December 31, 2006, 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.

AES Corporation 2


Delivered Strong Q2 2007 Results–Revenues increased by 17% to $3.3 billion–Operating cash flow increased by $84 million to $526 million–Diluted earnings per share from continuing operations and adjusted earnings per share of $0.41

Includes $0.15 positive impact from the acquisition of lessor interests at AES Eastern Energy in New York and tax recoveries in Latin America

Acquired 827 MW Existing and Greenfield Pipeline in 3 Countries– 100% interest in two U.S. fully operating wind farms totaling 186 MW– 51% interest in JV with 26 MW in operations and 390 MW greenfield hydro pipeline in Turkey

– 49% interest in JV with 225 MW greenfield wind pipeline in China

Commenced construction of 370 MW Amman East CCGT in Jordan

Completed construction of 233 MW Buffalo Gap II wind farm in Texas

(1) A non-GAAP financial measure. See Appendix.

Second Quarter 2007 Highlights

AES Corporation 3


(1) A non-GAAP financial measure. See Appendix.(2) New businesses include the acquisition of TEG and TEP in Mexico and the consolidation of Itabo in the Dominican Republic.Note: All prior period results in this presentation reflect businesses placed in discontinued operations effective March 31, 2007.

($ Millions Except Earnings Per Share and Percent)

Second Quarter 2007 Highlights

In comparison to Q2 2006, gross margin increased by $21 million to $888 million reflecting higher prices in New York and Latin America, favorable foreign currency trends and contributions from new businesses(2). These gains were partially offset by a cumulative charge of $48 million relating to transmission fees accumulated from 2004 through 2007 at Tiete in Brazil, increased purchased energy and fuel costs at Uruguaiana in Brazil and lower emission sales of $24 million.

In comparison to Q2 2006, IBT&MI increased by $338 million to $788 million, primarily due to:

- A non-cash gain of $137 million recorded in other income related to a previously disclosed acquisition of lessor interests, which is accounted for as a contract settlement in New York .

- A gain of $93 million recorded in other income due to a gross receipts tax recoveries of $93 million at two of its Latin American subsidiaries.

Operating cash flow increased by $84 million to $526 million This increase was primarily due to decreases in net working capital and the contributions from new businesses. Free cash flow (1) decreased by $43 million due to increased maintenance capital expenditures, including environmental projects at IPL in Indiana and Kilroot in Northern Ireland.

Consolidated Highlights

(16%)

19%

46%

41%

75%

2%

17%

% Change

$263$220Free Cash Flow (1)

$442$526Net Cash from Operating Activities

$0.28$0.41Adjusted EPS (1)

$0.29$0.41Diluted EPS from Continuing Operations

$450$788Income Before Taxes and Minority Interest (IBT & MI)

$867$888Gross Margin

$2,862$3,344Revenues

Second Quarter 2006

Second Quarter 2007

AES Corporation 4


Reconciliation of Adjusted Earnings Per Share($ Per Share)

Adjusted Earnings Per Share (1)

Debt Retirement (Gains)/Losses

Net Asset (Gains)/Losses and Impairments

Currency Transaction (Gains)/Losses

FAS 133 Mark to Market (Gains)/Losses

Diluted Earnings Per Share From Continuing Operations

20062007

$0.41

--

0.01

(0.01)

--

$0.41

$0.28

--

--

--

(0.01)

$0.29

Second Quarter

(1) Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark to market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) costs related to early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency transaction gains or losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

AES Corporation 5


Gross margin increase reflects higher prices in New York and Latin America, favorable foreign currency trends and contributions from new businesses, partially offset by a $48 cumulative charge related to transmission costs in Brazil and lower emission sales of $24 million compared to 2Q 2006. Higher Taxes reflect appreciation of the Brazilian real at certain of the Company’s Brazilian subsidiaries which increased the 2007 effective tax rate and the release of a valuation allowance at Eletropaulo in Brazil in the second quarter of 2006 which reduced the 2006 effective tax rate.Higher minority interest due to lower ownership of Eletropaulo in Brazil.

Second Quarter 2007 Bridge($ Per Share)

$0.26

(1) Shown on a pre-tax and pre-ownership adjusted basis.(2) Calculated as $102 million divided by 692 million shares(3) A non-GAAP financial measure. See Appendix.

2Q07Adjusted

EPS (3)

Eastern Energy and

Tax RecoveriesNon-Operational

Income (2)

2Q07 DilutedEPS from

ContinuingOperations

LowerNet

InterestExpense (1)

HigherIncome Taxes

andMinorityInterest

2Q06 Diluted

EPS fromContinuingOperations

Higher Development

and G&A

Expense (1)

$0.41 $0.41($0.12)

($0.04)

$0.15$0.11

$0.03

Gross Margin Improvements

(1)

$0.03

Excess Emission

Sales

$0.29

AES Corporation 6


(1) A non-GAAP financial measure. See Appendix.

Second Quarter 2007 Cash Flow Highlights($ Millions)

2007

--

$34

$259

$220

$11

$526

$357

Recourse Debt Repayment

Net Asset (Gains)/Losses and Impairments

Return of Capital from Subsidiaries (1)

Subsidiary Distributions (1)

Parent Only

Free Cash Flow (1)

Net Cash from Operating Activities

Consolidated

2006

--

$17

$29

$177

$263

$442

$604Subsidiary Net Cash from Operating Activities (1)

Subsidiary Only

Second Quarter

AES Corporation 7


(1) A non-GAAP financial measure. See Appendix.(2) Other includes wind and other alternative energy projects(3) AES sold its interest in EDC in second quarter 2007

($ Millions)

$3$3Other

$3

Other (2)TotalAsiaEurope &

AfricaLatin

America North

America

$192$0$0$118$74Utilities

$64$8$13$11$32Generation

$259$8$13$129$106Total

Second Quarter 2007 Subsidiary Distributions (1)

Top 10 Second Quarter 2007 Subsidiary Distributions (1)

$7$74IPALCO

$9LA Utilities$97EDC (3)

SegmentAmountBusinessSegmentAmountBusiness

$6

$6

$6

$20

$11

$11

Second Quarter 2007 Subsidiary Distributions

Brasiliana

Andres

Hawaii

Elsta

Shady Point

Warrior Run

Kilroot

Lal Pir

LA Utilities

NA Generation

E&A Generation

NA Generation

NA Utilities

LA Generation

NA Generation

E&A Generation

Asia Generation

AES Corporation 8


(1) Includes the consolidation of Itabo in the Dominican Republic

Second Quarter

Second Quarter Segment HighlightsLatin America Generation

($ Millions except as noted)

27%

4%

2%

33%

Revenues

Gross Margin

IBT&MI

$823

$200

$293

$620

$255

$203

Volume/Price/Mix

New Businesses/Projects (1)

Currency (Net)

Total

Revenue Comparison (QOQ) % Change

33%

(22%)

44%

2007 2006%

Change Segment HighlightsLatin America Generation revenue increased by $203 million to $823 million, primarily due to higher contract and spot prices at Gener in Chile, higher intercompany sales at Tiete in Brazil and the consolidation of Itabo in the Dominican Republic

Gross margin remained flat at Gener, primarily due to higher fuel costs. Total gross margin decreased by $55 million to $200 million, primarily due to a cumulative charge of $48 million at Tiete in Brazil and increased purchased electricity and fuel costs at Uruguaiana in Brazil.

IBT&MI increased by $90 million primarily due to a recovery of $93 million relating to gross receipts tax recoveries and the reduction of interest expense offset by the decrease in gross margin.

AES Corporation 9


Second Quarter

Second Quarter Segment HighlightsLatin America Utilities


4%

0%

9%

13%

Revenues

Gross Margin

IBT&MI

$1,307

$289

$230

$1,156

$267

$165

Volume/Price/Mix

New Businesses/Projects

Currency (Net)

Total


13%

8%

39%

2007 2006%

Change Segment HighlightsLatin America Utility revenue increased by $151 million to $1.3 billion, primarily due to the positive impact of foreign currency translation in Brazil and higher volumes at Eletropaulo.

Gross margin increased by $22 million to $289 million, primarily due to favorable foreign currency translation.

IBT&MI increased $65 million primarily due to foreign currency transaction gains and lower interest expense.

AES Corporation 10


(1) Includes TEG and TEP in Mexico

Second Quarter

Second Quarter Segment HighlightsNorth America Generation


8%

11%

0%

19%

Revenues

Gross Margin

IBT&MI

$546

$181

$269

$459

$133

$65

Volume/Price/Mix

New Businesses/Projects (1)

Currency (Net)

Total


19%

36%

314%

2007 2006%

Change Segment HighlightsNorth America Generation revenue increased by $87 million to $546 million, primarily due to the acquisition of TEG and TEP in Mexico and higher spot prices at Eastern Energy in New York.

Gross margin increased by $48 million to $181 million, primarily due to the higher spot prices at Eastern Energy and the acquisition of TEG and TEP. These gains were partially offset by lower emission sales in New York.

IBT&MI increased by $204 million primarily due to the acquisition of TEG and TEP and a $137 million gain related to the acquisition of lessorinterests at one of our subsidiaries in New York.

AES Corporation 11


Second Quarter

Second Quarter Segment HighlightsNorth America Utilities


3%

0%

0%

3%

Revenues

Gross Margin

IBT&MI

$259

$78

$52

$251

$59

$29

Volume/Price/Mix


Currency (Net)

Total


3%

32%

79%

2007 2006%

Change Segment HighlightsNorth America Utility revenue increased by $8 million to $259 million, primarily due to higher volumes at IPL in Indiana.

Gross margin increased by $19 million to $78 million primarily due to higher volume and lower maintenance costs associated with generation unit overhauls in second quarter of 2006 at IPL.

IBT&MI increased $23 million primarily due to an increase in gross margin and lower interest expense.

AES Corporation 12


Second Quarter

Second Quarter Segment HighlightsEurope & Africa Generation (1)


7%

1%

7%

15%

Revenues

Gross Margin

IBT&MI

$214

$43

$40

$186

$55

$54

Volume/Price/Mix


Currency (Net)

Total


15%

(22%)

(26%)

2007 2006%

Change Segment HighlightsEurope & Africa Generation revenue increased by $28 million to $214 million, primarily due to higher volume at Tisza II in Hungary and in Kazakhstan and favorable foreign currency translation. These gains were partially offset by lower emission sales in Hungary and the Czech Republic.

Gross margin decreased by $12 million to $43 million, primarily due to lower emission sales and a planned outage at Kilroot in Northern Ireland.

IBT&MI decreased by $14 million primarily due to the decrease in gross margin as well as an increase in interest expense and foreign currency losses.

(1) Includes CIS countries

AES Corporation 13


(1) Includes CIS countries

Second Quarter

Second Quarter Segment HighlightsEurope & Africa Utilities (1)


13%

0%

4%

17%

Revenues

Gross Margin

IBT&MI

$159

$24

$22

$136

$29

$26

Volume/Price/Mix


Currency (Net)

Total


17%

(17%)

(15%)

2007 2006%

Change Segment HighlightsEurope & Africa Utility revenue increased by $23 million to $159 million, primarily due to higher volume and tariff rates in Ukraine and foreign currency translation gains.

Gross margin decreased by $5 million to $24 million primarily due to reduced rainfall in Cameroon which led to increased fuel costs at SONEL and higher fixed costs related to increased staffing and higher depreciation also at SONEL in Cameroon.

IBT&MI decreased by $4 million due to the decrease in gross margin.

AES Corporation 14


(1) Includes the Middle East

Second Quarter

Second Quarter Segment HighlightsAsia Generation (1)


5%

0%

0%

5%

Revenues

Gross Margin

IBT&MI

$251

$60

$47

$240

$56

$42

Volume/Price/Mix


Currency (Net)

Total


5%

7%

12%

2007 2006%

Change Segment HighlightsAsia Generation revenue increased by $11 million to $251 million, primarily due to higher volume in Pakistan and Sri Lanka, partially offset by lower volumes at Barka in Oman.

Gross margin increased by $4 million to $60 million, primarily due to higher volumes in Pakistan.

IBT&MI increased $5 million due to a higher gross margin and Interest income.

AES Corporation 15


Appendix

AES Corporation 16


(1) A non-GAAP financial measure

Parent Sources and Uses of Cash($ Millions)

Total Uses

Sources

Ending Liquidity (1)

Changes in Letters of Credit and Other, Net

Cash Payments for Interest

Cash for Development, Selling, General and Administrative and Taxes

Investments in Subsidiaries, Net

Repayments of Debt

Uses

Total Sources

Beginning Liquidity (1)

Total Returns of Capital Distributions and Project Financing Proceeds

Increased Credit Facility Commitments

Refinancing Proceeds, Net

Proceeds from Asset Sales, Net

Total Subsidiary Distributions (1)

Issuance of Common Stock, Net

($1,919)

Second Quarter2007

(1,378)

21

(133)

(67)

(362)

$--

$1,919

878

34

--

--

734

$259

14

AES Corporation 17


Six Months Ended June 2007 Reconciliation of Changes to Debt Balances

($ Millions)

Parent Debt (Including Letters of Credit) at 12/31/06 (1)Debt Reconciliation

$4,795Parent Debt (Excluding Letters of Credit) at 6/30/07

(377)Less: Letters of Credit Outstanding at 6/30/07

$5,251

Discretionary Debt Repayments:--Prepayment of Debt

$5,172Parent Debt (Including Letters of Credit) at 6/30/07

(79)Other (2)

--Scheduled Debt Maturities:

(1) Amount reflects recourse debt of $4,790 million and $461 million letters of credit under the parent revolver. Revolver availability at 12/31/06 was $889 million.

(2) Other includes a decrease in letters of credit of approximately $84 million, a decrease in unamortized discount of approximately $1 million, and a $4 million increase due to foreign currency changes.

AES Corporation 18


(1) Includes activity at qualified holding companies(2) Consolidated depreciation and amortization was $230 million for 2Q07 and $224 million for 2Q06. Depreciation and amortization from continuing

operations was $220 million for 2Q07 and $187 million for 2Q06.Note: Certain amounts have been netted, condensed and rounded for presentation purposes.

Second Quarter 2007 Consolidated Cash Flow($ Millions)Net Cash Provided by Operating Activities(2)

Capital ExpendituresAcquisitions, Net of Cash AcquiredProceeds from the Sale of BusinessProceeds from the Sales of AssetsPurchase/Sale of Short–Term Investments, Net(Increase)/Decrease in Restricted CashProceeds from the Sale of Emission AllowancesPurchase of Emission AllowancesDecrease in Debt Service Reserves and Other AssetsPurchase of Long Term Available for Sale SecuritiesOther InvestingInvestment in SubsidiariesReturns of Capital from Subsidiaries

Net Cash (Used in) Provided by Investing Activities

(Repayments) Borrowings under the Revolving Credit Facilities, NetIssuance of Recourse DebtIssuance of Non-Recourse DebtRepayments of Recourse DebtRepayments for Non-Recourse DebtPayments of Deferred Financing CostsDistributions to Minority InterestsContributions from Minority InterestsIssuance of Common StockFinanced Capital ExpendituresOther FinancingEquity Contributions by ParentDistributions to Parent

Net Cash (Used in) Provided by Financing Activities

Total (Decrease) Increase in Cash & Cash EquivalentsEffect of Exchange Rate Changes on CashCash & Cash Equivalents, Beginning

Cash & Cash Equivalents, Ending

$62

(19)--

734----------------

(365)34

(384)

(148)--------------

16------

16

(116)

330--

75

$405

$357

(695)(82)

473

(269)(165)

1 (1)(8)

(15)(1)

365(44)

(864)

(221)--

428--

(227)(17)

(212)327(1)(4)

--294122

489

(18)33

1,059

$1,074

ConsolidatedEliminationsAES Corp (1)Subsidiaries$107

------------------------

10

10

----------------------

(294)(138)

(432)

(315)--

314

$(1)

$526

(714)(82)781

3(269)(165)

1(1)(8)

(15)(1)

----

(470)

(369)--

428--

(227)(17)

(212)327

15(4)

------

(59)

(3)33

1,448

$1,478

AES Corporation 19


Net Cash Provided by Operating Activities(2)

Capital ExpendituresAcquisitions, Net of Cash AcquiredProceeds from the Sale of BusinessProceeds from the Sales of AssetsPurchase/Sale of Short–Term Investments, Net(Increase)/Decrease in Restricted CashProceeds from the Sale of Emission AllowancesPurchase of Emission AllowancesDecrease in Debt Service Reserves and Other AssetsPurchase of Long Term Available for Sale SecuritiesOther InvestingInvestment in SubsidiariesReturns of Capital from Subsidiaries

Net Cash (Used in) Provided by Investing Activities

(Repayments) Borrowings under the Revolving Credit Facilities, NetIssuance of Recourse DebtIssuance of Non-Recourse DebtRepayments of Recourse DebtRepayments for Non-Recourse DebtPayments of Deferred Financing CostsDistributions to Minority InterestsContributions from Minority InterestsIssuance of Common StockFinanced Capital ExpendituresOther FinancingEquity Contributions by ParentDistributions to Parent

Net Cash Provided by (Used in) Financing Activities

Total (Decrease) Increase in Cash & Cash EquivalentsEffect of Exchange Rate Changes on CashCash & Cash Equivalents, Beginning

Cash & Cash Equivalents, Ending

$18

(28)--

734----

(2)------

(3)(0)

(669)49

81

----------

(0)----

28------

16

44

143--

262

$405

$1,089

(1,162)(256)

475

(413)(177)

10(2)

109(20)

11(14)

5

(1,857)

(183)--

798--

(597)(21)

(266)336

1(8)

1559

54

674

(94)50

1,117

$1,073

ConsolidatedEliminationsAES Corp (1)Subsidiaries$--

----------------------

683(54)

629

----------------------

(559)(70)

(629)

0----

$0

$1,107

(1190)(256)

7815

(413)(179)

10(2)

109(23)

11----

(1,147)

(183)--

798--

(597)(21)

(266)336

29(8)

1----

89

4950

1,379

$1,478

($ Millions)

(1) Includes activity at qualified holding companies(2) Consolidated depreciation and amortization was $459 for 2Q07 and $458 for 2Q06. Depreciation and amortization from continuing operations was $449

for 2Q07 and $393 for 2Q06.Note: Certain amounts have been netted, condensed and rounded for presentation purposes.

Six Months Ended June 2007 Consolidated Cash Flow

AES Corporation 20


Reconciliation of Subsidiary Distributions and Parent Liquidity

($ Millions)

Total subsidiary distributions

Total returns of capital distributions

Total subsidiary distributions & returns of capital to Parent

Quarter Ended

Liquidity (2)

Availability under revolverCash at QHCs (1) (2)

Ending liquidity

Cash at Parent

20$878

Mar. 31,2007

$54804

20$1,146

Dec 31,2006

$237889

37$973

Sept 30,2006

$172764

Balance as of

7$645

Jun. 30,2006

$71567

$1,378

Jun. 30,2007

$39597310

$177

29

$206

$311

9

$320

15

$137

$152

$259

34

$293

Jun. 30,2006

Dec. 31,2006

Mar. 31,2007

Jun. 30,2007

Sept 30,2006

$352

34

$386

(1) Qualified Holding Company. See “Assumptions”(2) A non-GAAP financial measure

AES Corporation 21


Assumptions

Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to: (a) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; (b) 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; (c) new business opportunities are available to AES in sufficient quantity to achieve its growth objectives; (d) no material disruptions or discontinuities occur in GDP, foreign exchange rates, inflation or interest rates during the forecast period; and (e) material business-specific risks as described in the Company’s SEC filings do not occur individually or cumulatively. 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. Also, improvement in certain KPIs such as equivalent forced outage rate and commercial availability may not improve financial performance at all facilities based on commercial terms and conditions. These benefits will not be fully reflected in the Company’s consolidated financial results.

The cash held at qualifying holding companies (QHCs) represents cash sent to subsidiaries of the Company domiciled outside of the U.S. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the U.S. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the U.S. Since the cash held by these QHCsis available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs. AES believes that unconsolidated parent company liquidity is important to the liquidity position of AES as a parent company because of the non-recourse nature of most of AES’s indebtedness.

AES Corporation 22


Adjusted earnings per share – Defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency gains and losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

Free cash flow – Defined as net cash flow from operating activities less maintenance capital expenditures. Maintenance capital expenditures reflect property additions less growth capital expenditures. AES believes that free cash flow is a useful measure for evaluating our financial condition because it represents the amount of cash provided by operations less maintenance capital expenditures as defined by our businesses, that may be available for investing or for repaying debt.

Liquidity – Defined as cash at the parent company plus availability under corporate revolver plus cash at qualifying holding companies (QHCs). AES believes that unconsolidated parent company liquidity is important to the liquidity position of AES as a parent company because of the non-recourse nature of most of AES’s indebtedness.

Subsidiary distributions – Defined as cash distributions (primarily dividends and interest income) from subsidiary companies to the parent company and qualified holding companies. AES believes subsidiary distributions are an important measure, as these cash flows are the source of cash flow to the parent to meet corporate interest, overhead, cash taxes, and discretionary uses such as recourse debt reductions and corporate investments.

Definitions of Non-GAAP Financial Measures

AES Corporation 23


Capital Expenditures

Maintenance Capital Expenditures

Growth Capital Expenditures

Capital Expenditures

Second Quarter

$306

412

$718

2007

$179

148

$327

2006

Reconciliation of Cash Flow Items

Subsidiaries

$357Second Quarter 2007

($ Millions)AES Corp &

QHCs (1)

$62

Eliminations

$107

Consolidated

$526

(1) Includes activity at qualified holding companies.


Reconciliation of Free Cash Flow


Less: Maintenance Capital Expenditures

Free Cash Flow

Second Quarter

$526

306

$220

2007

$442

179

$263

2006

Six Months Ended June 30,

$510

688

$1,198

2007

$379

190

$569

2006

Six Months Ended June 30,

$1,107

510

$597

2007

$951

379

$572

2006

Economy & Finance

AES 2Q07 Review