press-release-details

Press Release Details

AES Enters Into Agreement to Acquire 1,246 MW Generation Facility for £99 Million, Expanding Northern Ireland Operational Capacity to 1,868 MW

Jul 02, 2010

ARLINGTON, Va., Jul 02, 2010 --The AES Corporation (NYSE: AES) today announced that it has entered into an agreement with BG Energy Holdings to acquire Premier Power Limited (PPL), owner of the 1,246 MW natural gas-fired Ballylumford Power Station in County Antrim, Northern Ireland for £99 million. The transaction is subject to license consents from the Northern Ireland Authority for Utility Regulation and the Northern Ireland Department of Enterprise, Trade and Industry, and is expected to close in the second half of 2010. The majority of Ballylumford's output is contracted to Northern Ireland Electricity and the affiliated agreements allow for a pass-through of fuel costs. Upon obtaining required consents, at closing AES' new subsidiary, AES Ballylumford Holdings Limited, will acquire PPL through an all cash transaction and the final purchase price will incorporate working capital adjustments.

"Ballylumford Power Station will increase AES capacity while providing important fuel diversification and will complement our nearly two decades of operations experience serving the Northern Ireland market," said Paul Hanrahan, President and Chief Executive Officer of AES. "As a result of our strong liquidity and our familiarity with Northern Ireland, we were able to move quickly on the opportunity and acquire a business that complements our fleet. The Ballylumford acquisition will contribute accretive near-term earnings, creating value for our shareholders."

"Northern Ireland continues to offer a transparent and attractive investment environment. We are thrilled to have reached an agreement with BG Energy Holdings," said Mark Green, Managing Director of Development for AES.

Northern Ireland was AES' first international investment opportunity with its acquisition of the Kilroot facility in 1992, which today utilizes coal and oil and has an operational capacity of 622 MW. The acquisition builds on AES' recent investment in Northern Ireland's generation capacity. In 2009, AES completed a platform expansion of Kilroot through the addition of 84 MW of peaking capacity. Upon closing of the PPL transaction AES will have a total capacity of 1,868 MW, operating approximately 15 percent of the generation capacity in the Single Electricity Market (SEM), which covers Northern Ireland and the Republic of Ireland.

Headquartered in Arlington, Virginia, AES is a power company with generation and distribution businesses in more than 30 countries and applies its experience from construction, development, operations, sourcing and management throughout its worldwide platform.

About Ballylumford

The Ballylumford Power Station is a gas-fired generation facility situated in Country Antrim, Northern Ireland and operates in the SEM. It is the largest electricity generation site on the island of Ireland with a nominal operating capacity of 1,246 MW and consists of three stations:

  • 600 MWC Station commenced operations in 2003 and includes two Combined Cycle Gas Turbine (CCGT), V94.2 and V64.3 technology, with combined efficiency of 48 percent. All units have dual capacity, running on natural gas with the ability to burn distillate as back-up fuel.
  • 540 MW B Station was constructed in 1974 and includes three natural gas driven steam turbines, each of which has an operating capacity of 180 MW and an efficiency of 31 percent.
  • 106 MW, two Open Cycle Gas Turbine (OCGT) units, which began operations in 1976, provide peaking services for grid support and emergency response.

About The AES Corporation

The AES Corporation (NYSE: AES) is a Fortune 500 global power company with generation and distribution businesses. Through our diverse portfolio of thermal and renewable fuel sources, we provide affordable and sustainable energy to 31 countries. Our workforce of 27,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2009 revenues were $14 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com.

Safe Harbour Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. 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' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume 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 investments at normalised investment levels and rates of return consistent with prior experience.

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' filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES' 2009 Annual Report on Form 10-K. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company's 2009 Annual Report on Form 10-K filed on or about February 25, 2010 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K is available on the Company's website at www.aes.com.

SOURCE: The AES Corporation

The AES Corporation
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Meghan Dotter, 703-682-6670
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