ARLINGTON, Va.--(BUSINESS WIRE)--The AES Corporation (NYSE: AES) announced that it has commenced development on the expansion of its Masinloc power generation facility, which would represent an infrastructure investment of up to $800 million. It is anticipated that the expansion project will be funded with a combination of non-recourse financing and equity. Paul Hanrahan, AES President and CEO, met with Philippine President Benigno Simeon Aquino III and Energy Secretary Jose Rene Almendras on September 22 to discuss AES’ plan to double the size of its 660 MW Masinloc I coal-fired power plant.

“Based on our experience to date, the Philippine economy continues to show significant levels of growth which requires new low-cost electric generation capacity. Our Masinloc I facility was built in a way that included much of the critical infrastructure for the expansion unit, allowing us to provide one of the lowest cost alternatives for capacity expansion. We look forward to continuing our work within the Philippine power sector to help meet its growing demand for electricity,” said Mr. Hanrahan.

Through its acquisition of the 660 MW Masinloc I facility in the Central Luzon region in 2008, AES became the largest foreign investor in the country’s power sector. The Philippine economy is projected to grow at an average of over five percent year over year through 2015, with demand for electricity set to grow five percent through the same period. As a result of capital investment and operational improvements, AES increased Masinloc’s capacity from 450 MW to 630 MW, improved availability from 50 percent to 74 percent and increased net production by 62 percent within two years. AES also improved the plant’s environmental performance, lowering emissions levels so that they are in compliance with World Bank standards. The Masinloc II project would leverage the existing infrastructure, transmission interconnection and AES’ operating experience in the Philippines.

AES currently employs more than 200 people at the Masinloc facility, with the majority of the management team drawn from the Philippines. AES has an ongoing commitment to the communities surrounding Masinloc, where it supports educational and health initiatives by offering scholarships and sponsoring health care services. To help its customers, such as the Rural Cooperatives Management, strengthen its operations, AES is sponsoring a variety of management seminars including Corporate Governance, Customer Service and Communication Strategies, and Financial Management.

About AES

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 30 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 Harbor 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 normalized 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. Stockholders may also obtain a copy by visiting the Company’s website at www.aes.com.