City or location Month XX, 20XX June 28 , 2006

AES CORPORATIONElectricidad de Caracas Business Review

Julian NebredaChief Executive Officer

1www.aes.com

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 contract 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 2005 Annual Report on Form 10-K 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.

2www.aes.com

AES Goals AES 2008 Target EDC Role

Electricidad de Caracas Strategic OverviewContains Forward Looking Statements

Financial Goals

Revenue Growth

Gross Margin Growth

Earnings Per Share Growth

ROIC Improvement (1)

Cash Flow Growth

Subsidiary Distributions (1)

Restructuring Opportunities

Growth Goals

Platform Expansion

Greenfield Investment

Privatization/M&A

--

$3.5 Billion

13-19% per Year

11%

$2.6-2.9 Billion

--

--

--

--

--

Below Average

Above Average

Below Average

Above Average

Above Average

Increasing

Largely Completed

Limited Opportunities

Not a Current Focus

Not a Current Focus(1) Non-GAAP financial measure. See Appendix.

3www.aes.com

Venezuela Highlights

Venezuela at a Glance

Bolívar (Bs)US$1= Bs 2.150

US$ 4,77414.4%

OilCaracasCaracas

26.6 million

Currency Exchange Rate (12/1/05)Per Capita GDP (2005E)Inflation Rate (2005)Economic DriversCapital Largest CityPopulation (2005E)

4www.aes.com

Generation DistributionIPP Transmission

Venezuela Electricity Market Characteristics

Sources: Oficina de Operación de Sistemas Interconectados (OPSIS, National Venezuelan Electrical Power Control Center) and Cámara Venezolanade la Industria Eléctrica (CAVEINAL, Venezuelan Electric Industry Chamber), as of December 31, 2005.

Eight generation companies (five state-owned, three private)

Installed capacity of22,462MW

66% hydroelectric 34% thermal

State-owned companiesown 88% of installedcapacity, 10% by EDC,2%by local private companies

EDELCA (state-ownedhydroelectric company)generates 72% of NationalInterconnected System(SIN) electricity

94% of the nationalpopulation (more than 24million) is served by thedistribution companies

71% is served by state-owned companies, mainly CADAFE29% by private companies, mainly EDC

Regulated public serviceExclusive geographic concessions for regulated customersTariffs set every four years based on a “cost plus” methodology

Four companies – threestate-owned and oneprivate (EDC)

Regulated public serviceExclusive geographic concessions for regulated customersOver 22,500 km of linesVoltages: 765kV, 400kV, 230kV, 138kV and 115/kV

Four companies – threeprivate and one state-owned

Installed capacity 1,480MWPDVSA 980MWGENEVAPCA (EDC) 300MWTurboven (PSEG) 120MWTermobarrancas(REPSOL) 80MW

5www.aes.com

EDC37%

Others11%

Enelven23%

Cadafe29%

Market Position in Venezuela

Edelca72%

Others4%

Enelven6%Cadafe

9%

EDC 9%

Installed Generation Capacity 22,462 MW

Electricity Generation 104,091 GWh

Gross Thermal Generation 27,127 MWh

Venezuela 104,091 GWh

EDC 9,846 GWh

GENEVAPCA 1,491 GWh

Edelca64%

Enelven7%

Others2%

Cadafe17%

EDC10%

Sources: OPSIS and CAVEINEL, as of December 31, 2005.

Net Generation

6www.aes.com

Venezuela Electricity Demand Growth

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

GDP Growth Energy Demand Growth

Sources: CAVEINEL and Banco Central de Venezuela (BCV).

(Year over Year)

7www.aes.com

EDC History

1895C.A. La Electricidad de Caracas (EDC), created

1897EDC commissioned its first power plant, El Encantado, 420 kW on the banks of the Guaire river

1931Started operations of its first thermal power plant, Ricardo Zuloaga

1947EDC lists on Caracas Stock Exchange

2004EDC received ISO 9001-2000 accreditation for its customer care services and commercial offices

2004US$260 MM 10.25% 10-year bonds issued

2005Construction started on new 200MW La Raisa plant

1995First IPP in Venezuela -GENEVAPCA

1998ADRs registered in the New York OTC market

2000AES acquired 86% of EDC

1895-1989 1990-2000 2001-2005

8www.aes.com

EDC Service Area

EDC serves the Greater Caracas region, and Vargas State Venezuela’s largest population center, and the smaller San Felipe area

EDC Service Area5,176 km2 service territory

Approximately one million customers serving population of approximately 5 million

10,807 km transmission lines

10,525 GWh of power sold in 2005

Greater CaracasService AreaSan Felipe Service Area

9www.aes.com

EDC Generation Plants

Tacoa

CRZ 1 - 6

OAM

9 - 13

120 MW

Arrecifes

CRZ 11-14Tacoa Expansion

CRZ 7 - 9

2,616MW installed capacity - 20 turbines

336 MW 450 MW1,410 MW 300 MW

GENEVAPCA

IPP

Gas/Fuel Oil #2

Gas/Fuel Oil #2

Gas/Fuel Oil #6

GasGasType of fuel

19951994 - 19951999 - 2000

1978 - 19811956 - 19661951 - 1959Commissioned

3 x 100 MW5 x 90 MW3 x 470 MW2 x 40 MW2 x 60 MW2 x 68 MW

3 x 40 MWInstalled ratedcapacity

CombustionCombustionSteamSteamSteamTurbines

10www.aes.com

81.9%

85.3%84.9%

2003 2004 2005

61.9% 65.8%

61.3% 54.7% 53.0%

2003 2004 2005

EDC Performance KPIs

Net Capacity Factor (NCF)Equivalent Availability

Factor (EAF)

Without Hydro Purchases

Values correspond to a 12-month moving average

11www.aes.com

3,389

1,695

1,892

3,520

3,536

880

1,885

3,607

3,654

986

1,994

3,891

2003 2004 2005

Residential GovernmentIndustrial Commercial

Industrial19%

Commercial36%

Government10% Residential

35%

2005 Energy Sales (KWh)

2005 Revenues (US$)

EDC Customer Base

Note: Government includes public lighting.

Electricity Sales Trend (GWh)

10,496 9,908 10,525

Industrial15%

Commercial39%

Government9% Residential

37%

12www.aes.com

Total Losses

4.8%

2.6%

10.5%

5.1%

2.3%

10.3%

5.0%

2.3%

10.2%

5.0%

2.3%

9.8%

5.3%

2.2%

9.6%

2004 2005 2006 Jan 2006 Feb 2006 Mar

17.9% 17.7% 17.5% 17.1% 17.1%

Maximum Loss Recognized

(12%)

Getting Better

Distribution Transmission Non Technical

13www.aes.com

Venezuela Tariff Regime

COST OF SERVICE

Generation

Energy Purchased

Transmission

Annual depreciation charge (revalued)O&M and other expensesLabor expensesFuel costsIncome taxesReturn on Rate Base

Annual depreciation charge (revalued)O&M and other expensesLabor expensesIncome taxesReturn on Rate Base

Annual depreciation charge (revalued)

O&M and other expenses

Labor expenses

Income taxes

Return on Rate Base

Direct pass-through

COST

+

RETURN

HV Distribution

MV DistributionLV DistributionStreet Lighting

Retail

14www.aes.com

0

20

40

60

80

100

120

EDC’s Tariff Composition

46.9% 7.4%0% 0%

Variable Cost : Fuel + Energy purchasesAdded Value Gen, T&D : Fixed Cost + Tariff return

Annual Changein Added Value

94.57 98.99 103.43 107.11

(1) As of December 31, unless otherwise indicated.

Bs

/ KW

(1)

2003 2004 2005 April2006

15www.aes.com

EDC Safety Performance

73

29 26 27 2516

2000 2001 2002 2003 2004 2005

Lost

Tim

eA

ccid

ents

Contractors General Public

EDC People

4

26 2734

20 22

2000 2001 2002 2003 2004 2005

1216

13

24 23

16

2000 2001 2002 2003 2004 2005

Acc

iden

ts

Lost

Tim

eA

ccid

ents

16www.aes.com

Total Debt

In US$ millions, as of March 31, 2006

+

+

+

+

$167Net Debt

$205Net

Exposure$(38)Net Debt (1)

$228$115$113Cash & Equivalents

$395$320$75Debt

Short-Term$78

Long-Term$317ForeignLocal

(1) Non-GAAP financial measure equal to debt less cash & equivalents.

17www.aes.com

31%

69%

26%

74%

20%

80%

27%

73%

22%

78%

19%

81%

Strengthening EDC’s Financial ProfileTenor

Currency

Rate

Long-Term Short-Term

2004 2005 Contains Forward Looking Statements

BolivarsUS Dollars

Fixed Floating

Dividends Declared (US$ Millions)

2003

$12

2004

$107

2005

$100

2006YTD

$117

Note: Dividends are declared in bolivars; US$ equivalent at exchange rate at declaration date.

0

100

200

300

2006 2007 2008 2009 2010 2011 2012 2013 2014

US$

Milli

ons

Amortization Schedule

18www.aes.com

Deleveraging and Extending Maturities

$0

$200

$400

$600

$800

2003 2004 2005

Tota

l Deb

t (U

SD

Mill

ions

)

0

2

4

6

8

Average Life (Y

ears)

USD Debt Bolivar Debt Average Life

$664$780

$399

19www.aes.com

EDC Credit Rating Improvement

BB-B+B-BForeign Debt

BB-BB-BBB-Local Debt

AA+ (Ven)Long Term Notes

B

F1+ (Ven)

2005

Short Term Notes

BB-CCC+Standard & Poors

200420032002

Fitch Ratings

20www.aes.com

(US$ Million)

EDC Financial Overview

200520042003

$613$619$608Revenue

$107$77--Distributions to AES Corporation

$214$126$126Income Before Tax &Minority Interest

$218$234$251Gross Margin

Note: Information is presented on an AES basis and is unaudited. Certain intercompany transactions may not be eliminated. Distributions to AES Corporation reflect when dividends were actually received by AES Corp., not when they were declared by EDC or paid by AES to shareholders in Bolivars.

21www.aes.com

EDC 2006 –2008 Strategy

CustomersDevelop marketing capabilities

Develop new products & services

OperationsLearning organization

Reinvent operations and

administrative activities

Business EnvironmentDevelop a social brand

Influence the regulatory framework

based on the company’s strategic

objectives

Increase and broaden shareholder

base

Implement non-regulated business

initiatives

22www.aes.com

1947

Registration on Caracas Stock Exchange

1958

First issuance of Notes

1993

First issuance of Commercial Papers

1998

Registration of ADRs on NY OTC market

2004

Issuance of US$260 MM 10.25% Bonds

2006

Participation in new capital markets(LATIBEX )

EDC in the Capital Markets